Month: October 2012

Dear Friends,

 

Tangents:

 

Between Ornamentation & Essentiality

-by Jerry Burchfield, Artist

I was only ten years old, but I still remember going into the backyard at night to watch the first satellite orbit the earth as it traveled through the night sky.  On one of those nights my Dad told me that “outer space” was the only hope for humanity.  Our efforts to make life “better” were destroying the earth, and ultimately we would have no choice but to abandon her.

This was in 1957, and now, more than fifty years later, we are finally beginning to realize that our struggle to control nature and our ever-escalating demands upon her have gotten out of hand.  Being an optimist, I still believe that it is not too late to change things.  I find solace, however, in the fact that outer space does provide us another option.

Throughout my career, my work has been about change and the “teetering” relationship between humanity and nature.  I seek the physical essence of nature, while drawing attention to the loss that is occurring.  Using methods similar to that of the photographic pioneer William Henry Fox Talbot, who made cameraless images of botanicals in the early 1800s, I work outdoors, not in a darkroom, using extended sunlight exposures to create color images of flora directly on gelatin silver black-and-white photographic paper.  I call these one-of-a-kind fossil-like images lumen prints.

To see more, go to  jerryburchfield.com/.

 

And on this day in…

1945 – The first ball-point pen goes is sold by Gimbell’s department store in New York for a price of $12.

1949 – Alonzo G. Moron of the Virgin Islands becomes the first African-American president of Hampton Institute, Hampton, Virginia.

1952 – French forces launch Operation Lorraine against Viet Minh supply bases in Indochina.

1964 – Thieves steal a jewel collection–including the world’s largest sapphire, the 565-carat “Star of India,” and the 100-carat DeLong ruby–from the Museum of Natural History in New York. The thieves were caught and most of the jewels recovered.

1969 – The U.S. Supreme Court orders immediate desegregation, superseding the previous “with all deliberate speed” ruling.

1969 – Internet created between Stanford & UCLA>

1972 – Palestinian guerrillas kill an airport employee and hijack a plane, carrying 27 passengers, to Cuba. They force West Germany to release 3 terrorists who were involved in the Munich Massacre.
photos of the day

October 29, 2012

Hurricane Sandy is seen moving towards the east coast of the United States in this NASA satellite image.

NOAA/NASA/GOES/Reuters

Sparrows sit on a fence under falling snow in a park in St. Petersburg, Russia.

Dmitry Lovetsky/AP

Market Closes for October 29^th, 2012:

 

Market  Index	Close	Change
Dow  Jones	13107.21	Closed
S&P 500	1411.94	Closed
NASDAQ	2987.951	Closed
TSX	12312.75	+12.45
		+0.10%

International Markets

Market  Index	Close	Change
NIKKEI	8929.34	-3.72
		-0.04%
HANG  SENG	21511.05	-34.52
		-0.16%
SENSEX	18635.82	+10.48
		+0.06%
FTSE 100	5795.10	-11.61
		+0.20%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.810	1.835
CND.   30 Year Bond	2.400	2.416
U.S.   10 Year Bond	1.7189	1.7486
U.S.   30 Year Bond	2.8826	2.9042

Currencies

BOC Close	Today	Previous
Canadian $	1.00091	0.99758
US   $	0.99909	1.00243
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29159	0.77424
US  $	1.29038	0.77497

Commodities

Gold	Close	Previous
London Gold   Fix	1708.85	1711.25
Oil	Close	Previous
WTI Crude Future	85.54	86.28
BRENT	111.09	111.57

Market Commentary:

Canada

By Eric Lam

Oct. 29 (Bloomberg) — Canadian stocks erased losses in the final minutes of trading, led by gains in MacDonald, Dettwiler and Associates Ltd. and Progress Energy Resources Corp. as U.S. equity markets closed before the landfall of Hurricane Sandy.

MacDonald Dettwiler surged 10 percent, the most since June, after a U.S. regulator approved its $875 million acquisition of Space Systems/Loral Inc. and analysts upgraded the stock. Intact Financial Corp., which provides home, automobile and business insurance in Canada, declined 1.9 percent with southern Ontario in the potential path of Sandy.

The Standard & Poor’s/TSX Composite Index rose 12.45 points, or 0.1 percent, to 12,312.75 in Toronto, erasing earlier losses of as much as 0.4 percent. Energy and mining stocks contributed most to gains on the benchmark Canadian equity gauge. Trading volume was 45 percent lower than the 30-day average.

“American players aren’t around so there’s a tremendous lack of liqudity,” said Brian Huen, managing partner with Red Sky Capital Management Ltd. in Toronto. His firm manages about C$55 million. Due to a lack of sellers, bids placed at the end of the trading session closed at higher prices, Huen said. “People had to pay up for stocks and this caused the index to jump up at the end,” he said.

Barry Schwartz, a fund manager with Baskin Financial Services Inc. in Toronto, said Canadian investors are reluctant to make big bets when the U.S. market is closed.

“The question is with the U.S. markets possibly closed for the next few days, whether that will leave us directionless,” Schwartz said. His firm manages about C$450 million ($450 million).

The U.S. securities industry canceled equity trading on all markets today, moving to protect workers as Hurricane Sandy barreled toward New York City with maximum sustained winds of 90 miles (145 kilometers) per hour, up from 75 mph earlier, and the threat of an 10-foot sea surge. The shutdown was extended through tomorrow.

Intact slid 1.9 percent to C$59.50. The company’s insurance business would be affected if the hurricane caused damage in Canada, Andre-Philippe Hardy, an analyst with RBC Capital Markets, said in a note.

Toronto-Dominion Bank, which has the biggest U.S. consumer lending operations among Canada’s banks, slipped 0.6 percent to C$80.68. The bank announced it has closed 776 branches across several states along the U.S. northeast coast including all stores in New Jersey, Pennsylvania, Delaware, Connecticut, Rhode Island and Massachusetts as well as in Washington D.C. and New York City.

Inmet Mining Corp., a diversified gold and copper miner, slumped 0.7 percent to C$50.10. Copper for December delivery fell 1.6 percent to settle at $3.4945 a pound in New York, declining for an eighth session on speculation the hurricane will disrupt the U.S. economy.

Progress Energy Resources Corp. jumped 7.9 percent to C$19.81 after Malaysian oil company Petroliam Nasional Bhd. extended the “outside date” for its takeover of the Canadian firm by 30 days as it seeks government approval. Industry Canada rejected the C$5.59 billion Petronas bid for Progress on Oct. 19, saying it was not of “net benefit” for the nation.

Nexen Inc., awaiting government approval for its $17.4 billion takeover by CNOOC Ltd., added 5.4 percent to C$24.53.

TransCanada Corp. added 1.1 percent to C$44.90 after it agreed to a deal with a unit of PetroChina Co. Ltd. to develop a C$3 billion oil pipeline to ship crude from oil-sands projects in northern Alberta. TransCanada and Phoenix Energy Holdings Ltd. will each own 50 percent of the proposed pipeline.

MacDonald Dettwiler, a Canadian maker of space-data collection equipment, gained 10 percent to C$55.43 after it received notice from a branch of the U.S. Federal Trade Commission that it has completed its review of the proposed acquisition of Space Systems/Loral.

“We view the acquisition as very accretive,” said Stephanie Price, an analyst with CIBC World Markets, in a note to clients. Price upgraded the stock to sector outperform and raised her 12-month price target to C$66.

Steven Arthur, a technology analyst at RBC Capital Markets, also raised the stock to outperform with a one-year price target of C$68.

US

All markets closed

 

Have  a wonderful evening everyone.

 

Be magnificent!

 

When the poor come to you in great need, begging for food,

do not harden your hearts against them.

Remember that the poor may once have been rich,

and you may one day be poor.

When you see people who are thin for lack of food,

beg them to accept your help;

remember that you may need their friendship in times to come.

Rig Veda

As ever,

 

Carolann

 

It is easier to fight for one’s principles

than to live up to them.

-Alfred Adler, 1870-1937

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:

Off to  Seattle to see Fidelio on this rainy west coast day….but at least it’s not Sandy!

On this day in 1994, Israeli Prime Minister Yitzhak Rabin and Abdel Salam Majali of Jordan signed a peace treaty. –Steven Russolillo, WSJ, 10/26/12

And also on this day in…

1879 – Leon Trotsky, revolutionary, is born.1942 – Japanese attack Guadalcanal, sinking two U.S. carriers.

1942 – U.S. Navy aircraft carrier Hornet is sunk in the Battle of Santa Cruz Island, in the South Pacific.1947 – Hilary Rodham Clinton is born.

1950 – A reconnaissance platoon for a South Korean division reaches the Yalu River. They are the only elements of the U.N. force to reach the river before the Chinese offensive pushes the whole army down into South Korea.

1955 – The Village Voice is first published, backed in part by Norman Mailer.

1958 – The first New York – Paris transatlantic jet passenger service is inaugurated by Pan Am, while the first New York – London transatlantic jet passenger service is inaugurated by BOAC.
This above all: To thine own self, be true. -William Shakespeare

Jean Marie Brennan walks along the jetty at Lighthouse Point Park as Hurricane Sandy passes offshore in Ponce Inlet, Florida.  Steve Nesius/Reuters

Sri Lankan ethnic Tamil dancers perform during an annual festival at the Venkatvar Sri Vishnu Hindu temple in Colombo, Sri Lanka, Thursday, Oct. 25, 20112.  Eranga Jayawardena/AP

Market Closes for October 26^th, 2012:

 

Market  Index	Close	Change
Dow  Jones	13107.21	+3.53
		+0.03%
S&P 500	1413.31	+0.34
		+0.02%
NASDAQ	2987.951	+1.833
		+0.06%
TSX	12301.35	+1.12
		+0.01%

International Markets

Market  Index	Close	Change
NIKKEI	8933.06	-122.14
		-1.35%
HANG  SENG	21545.57	-246.66
		-1.21%
SENSEX	18625.34	-133.29
		-0.71%
FTSE 100	5806.71	+1.66
		+0.03%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.835	1.898
CND.   30 Year Bond	2.416	2.461
U.S.   10 Year Bond	1.7486	1.8294
U.S.   30 Year Bond	2.9042	2.9787

Currencies

BOC Close	Today	Previous
Canadian $	0.99758	0.99464
US   $	1.00243	1.00539
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29085	0.77468
US  $	1.29392	0.77285

Commodities

Gold	Close	Previous
London Gold   Fix	1711.25	1712.90
Oil	Close	Previous
WTI Crude Future	86.28	85.68
BRENT	111.57	110.38

 

Market Commentary:

Canada

By Lu Wang

Oct. 26 (Bloomberg) — Canadian stocks swung between gains and losses as technology and mining shares dropped while phone companies rose amid better-than-expected growth report from the U.S., the nation’s biggest trading partner.

Six out of 10 industry groups in the Standard & Poor’s/TSX Composite Index advanced. Technology and raw-materials producers erased more than 0.3 percent for the biggest losses. TransAlta Corp. rallied 2.6 percent after Warren Buffett’s MidAmerican Energy Holdings Co. agreed to fund half the cost of natural gas- fueled power plants built or bought by the Calgary-based company in Canada. Whitecap Resources Inc. jumped 6.6 percent after an analyst predicted a dividend next year.

The S&P/TSX advanced 4.38 points, or less than 0.1 percent, to 12,304.61 at 2:14 p.m. in Toronto, after falling 0.1 percent and rallying as much as 0.4 percent. The index has lost 0.9 percent for the week.

“You’re seeing some reflection on the GDP number out of the States, which is considered good,” Greg Eckel, a Toronto- based fund manager with Morgan Meighen & Associates, said in a phone interview. His firm manages about C$1 billion ($1 billion). “It’s a signpost as to where we’ve been. This number is probably anticipated in the run-up of the market. It’s confirmation that maybe it’s right, rather than wrong.”

U.S. gross domestic product grew at a 2 percent annual rate in the third quarter after climbing 1.3 percent in the prior quarter, Commerce Department figures showed. Economists polled by Bloomberg had expected a gain of 1.8 percent.

TransAlta gained 2.6 percent to C$15.62. The company and its partner MidAmerican Energy didn’t provide a value on the venture or planned spending on natural gas-fueled power plants.

They estimate Canada needs almost $200 billion in new investment over the next 20 years in the electricity generation market.

Whitecap rallied 6.6 percent to C$7.97. The oil and gas company agreed to sell non-core assets for C$56.4 million and said it increased a credit facility 13 percent to C$450 million.

The chance that the company will announce a dividend next year is “even higher,” Jim Byrne, an analyst with BMO Capital Markets, wrote in a note.

Rogers Communications Inc. climbed 1.2 percent to C$43.99, the highest price since May 2008. Canada’s largest wireless operator was boosted to neutral from sell by Goldman Sachs Group Inc. The company’s third-quarter results, released on Oct. 24, “demonstrated Rogers’ ability to not only execute on cost controls, but drive improvements on the top line,” analyst Matthew Niknam wrote in a note dated yesterday.

Progressive Waste Solutions Ltd. slipped 3.2 percent, the most since May 4, to C$19.25. The trash hauler reduced its full- year profit forecast, saying it now expects to earn C$1 a share at most. Analysts, on average, estimated C$1.05, according to a Bloomberg survey.

US

By Rita Nazareth

Oct. 26 (Bloomberg) — Most U.S. stocks retreated, driving the Standard & Poor’s 500 Index to a weekly decline, as investors watched economic and corporate earnings reports.

Goodyear Tire & Rubber Co., the largest U.S. tiremaker, dropped 10 percent after reporting a profit that was below estimates. VeriSign Inc., an operator of Web domain name registries, tumbled 15 percent after saying regulators have delayed a review of the company’s contract for that business.

Expedia Inc. surged 15 percent as the online travel agency reported third-quarter earnings that topped analysts’ estimates.

Eight stocks declined for every five that advanced on U.S. exchanges at 4 p.m. New York time. The S&P 500 decreased 0.1 percent to 1,411.94 as the benchmark measure extended its weekly decline to 1.5 percent. The Dow Jones Industrial Average increased 3.53 points, or less than 0.1 percent, to 13,107.21.

Volume for exchange-listed stocks in the U.S. was about 5.8 billion shares, or 2.3 percent below the three-month average.

“You’re getting a mix of data that don’t have a clear direction,” said Stephen Wood, the New York-based chief market strategist for North America for Russell Investments, which oversees $152 billion. “It’s important for investors’ psychology to see GDP data beating estimates. Yet the earnings season has been a very challenging one.”

The benchmark gauge for American equities is poised to snap a four-month rally amid concern about corporate profits. The S&P 500 has slumped 2 percent so far in October. Third-quarter earnings at 71 percent of the index’s companies beat estimates, according to data compiled by Bloomberg. Sales missed forecasts at 59 percent of companies, the data showed.

The economy in the U.S. expanded more than forecast in the third quarter, paced by a pickup in consumer spending, a rebound in government outlays and gains in residential construction.

Separately, the Thomson Reuters/University of Michigan final index consumer sentiment for October increased to 82.6 from 78.3 the prior month. Economists projected 83 for the gauge after a preliminary October reading of 83.1, according to the median forecast of 60 economists surveyed by Bloomberg.

Concern about a worsening of Europe’s debt crisis grew after German Finance Minister Wolfgang Schaeuble said there are doubts on whether Greece will meet requirements for its European bailout, according to an e-mail release of an interview to be broadcast Oct. 30 on ZDF television.

“There’s still concern about Europe,” said Thomas Garcia, head of equity trading at Santa Fe, New Mexico-based Thornburg Investment Management Inc. His firm oversees about $80 billion.

“You have Greek debt crisis, problems in Spain and other areas. The market is going to be back and forth until those guys get things figured out over there.”

Goodyear dropped 10 percent to $11.02. The company posted a quarterly adjusted profit of 53 cents a share. The average estimate of eight analysts surveyed by Bloomberg was for a profit of 59 cents. The results excluded one-time items, such as accelerated depreciation and pension settlements in the U.K.

CA Inc. dropped 8.7 percent to $22.73. The maker of software for managing information technology cut its fiscal 2013 revenue forecast, citing lower-than-expected new product sales amid a weaker global economy.

Deckers Outdoor Corp. tumbled 17 percent to $29.48 after cutting its forecast for annual sales growth by almost two- thirds amid declining demand for its UGG brand sheepskin boots.

VeriSign plunged 15 percent to $39.39. The company, which operates the registry for .com names, submitted the agreement to provide that service to the U.S. Commerce Department on June 26 and anticipated an approval by Nov. 30, according to a statement yesterday. The agency, which along with the U.S. Department of Justice, is reviewing the agreement and may not complete the review on time, the Reston, Virginia-based company said.

Dean Foods Co. tumbled 11 percent to $16.74. The largest U.S. dairy processor was downgraded to hold from buy at Stifel Nicolaus & Co. by equity analyst Christopher Growe.

ImmunoGen Inc. sank 17 percent to $11.47 after the biotechnology company reported a royalty rate structure with partner Roche Holding AG that disappointed investors.

The S&P 500 Property & Casualty Insurance Index slipped 0.7 percent. The eight-member gauge has declined for six straight days, its longest losing streak since May. Travelers Cos., the lone insurer in the Dow, lost 0.8 percent to $71.56. Allstate Corp. fell 0.9 percent to $40.15.

Hurricane Sandy, dubbed “Frankenstorm” because it is forecast to reach the U.S. East Coast near Halloween next week, will cause insured losses of as much as $4.9 billion, Bloomberg Industries analyst Jonathan Adams estimated, citing Kenetic Analysis Corp.

Expedia Inc. surged 15 percent to $59.06. The company, which gets more than 40 percent of its business outside the U.S., expanded even as the European sovereign-debt crisis entered its third year. International revenue rose 22 percent in the period, surpassing domestic growth of 14 percent. Hotel reservations accounted for 77 percent of worldwide sales, while 7 percent came from airlines.

Amazon.com Inc. jumped 6.9 percent to $238.24 after posting a smaller operating loss than analysts had anticipated as the world’s largest online retailer ramped up spending on delivery services ahead of the holiday sales season.

Comcast Corp. added 3.3 percent to $37.56. The largest U.S. cable company and the majority owner of NBC said third-quarter profit more than doubled, boosted by advertising revenue, the sale of assets and a decrease in the loss of subscribers.

Eastman Chemical Co. climbed 12 percent to $60.19. The biggest U.S. producer of chemicals from coal surpassed third- quarter profit estimates and lifted its 2012 forecast.

Arch Coal Inc. gained 11 percent to $8.09. The fourth- largest U.S. producer of the fuel reported third-quarter results that exceeded analysts’ estimates after shipments increased more than projected and costs declined.

Moody’s Corp. rose 4.8 percent to $47.89 after saying profit increased 41 percent as companies took advantage of record investor demand and low borrowing costs by issuing debt.

NetSuite Inc. gained 15 percent to $65.40, a record. The software maker majority-owned by Oracle Corp.’s Larry Ellison surged after customer gains spurred higher than expected sales growth and the company raised its full-year forecast.

Julian Robertson, founder of Tiger Management LLC, said hedge funds that have positioned themselves for a “disaster” are making a mistake.

“I think right now they are all scared,” Robertson, who once ran one of the most successful hedge funds in world, said today in a television interview on “Bloomberg Surveillance” with Tom Keene. “They are really only going to be profitable in the event of a big disaster.”

Hedge funds have trailed markets this year after cutting risk to protect themselves against losses. The Bloomberg Global Aggregate Hedge Fund Index gained 3.1 percent through September, compared with a 16 percent increase in the Standard and Poor’s 500 Index and a 4.5 percent advance in the Barclays Capital Bond Composite U.S. Index.

Hedge funds that wager on rising and falling stocks are 22 percent net long, below the average of 35 percent to 40 percent, according to an Oct. 22 report published by Bank of America Merrill Lynch. A net position is the difference between bets on rising stocks and falling stocks.

 

Have  a wonderful weekend everyone.

 

Be magnificent!

 

We must learn to love those who think exactly opposite to us.

We have humanity for the background, but each must have his own individuality and his own thought.

Push the sects forward till each man and woman are sects unto themselves.

We must learn to love the man who differs from us in opinion.

We must learn that differentiation is the life of thought.

We have one common goal,

and that is the perfection of the human soul, the god within us.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

Take what you can use and let the rest go by.

-Ken Kesey, 1935-2001

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:

Prime Number:  100 MILLION

Number of years ago, roughly that tree resin “froze” in amber a spider in the act of seizing a wasp, the first known fossil evidence of a spider attack, found in a Burmese mine.

MUSIC – A new license to thrill

-by Stephen Humphries

When it comes to “James Bond” theme songs, nobody does it better than the Brits.  (Apologies to Carly Simon, whose ballad for “The Spy Who Loved Me” is an honorable exception.)  Case in point: Adele’s “Skyfall,” the first “Bond” song by a British artist in more than 25 years, has been widely hailed as one of the best in the series.

“[Sony pictures] was interested in an artist who not only would be right for the specific film, but who could harken back to the classic ‘Bond ‘ themes of the ‘60s,”  says Jon Burlingame, author of “The Music of James Bond.”  Because Adele is one of the hottest artists in the world – and a Brit – it was almost a no-brainer.”

….Adele’s “Skyfall” earns its license to thrill by emulating the classic “Bond” sound.  In keeping with the tenor of Daniel Craig’s Bond, it’s soulful and somber, sophisticated and seductive.  One can imagine a tuxedoed 007 listening to “Skyfall” while driving his Aston Martin – or sky-diving with Her Majesty.

“It’s one of the most listenable and accessible ‘Bond’ tunes in a long time,” concludes Burlingame.

 

On this day in 1986, Red Sox first baseman Bill Buckner let a routine ground ball go through his legs and get past him. You know the rest. -Steven Russolillo, WSJ, 10/25/2012.

And also on this day in…

1881 – Pablo Picasso was born.

1944 – The Japanese are defeated in the Battle of Leyte Gulf, the world’s largest sea engagement. From this point on, the depleted Japanese Navy increasingly resorts to the suicidal attacks of Kamikaze fighters.

1950 – Chinese Communist Forces launch their first-phase offensive across the Yalu River into North Korea.

1951 – In a general election, England’s Labour Party loses to Conservatives. Winston Churchill becomes prime minister, and Anthony Eden becomes foreign secretary.

1954 – President Eisenhower conducts the first televised Cabinet meeting.

1960 – Martin Luther King, Jr., is sentenced to four months in prison for a sit-in.

1983 – 1,800 U.S. troops and 300 Caribbean troops land on Grenada. U.S. forces soon turn up evidence of a strong Cuban and Soviet presence–large stores of arms and documents suggesting close links to Cuba.

 

Write in on your heart that every day is the best day in the year. –Ralph Waldo Emerson

photos of the day

October 25, 2012

Guests are silhouetted at the launch event of Microsoft’s Windows 8 operating system in New York.

Lucas Jackson/Reuters

Robert Cuccioli, portraying the Green Goblin, and Reeve Carney, portraying Spider-Man, with an actor dressed as villain Kraven the Hunter from the Broadway musical ‘Spider-Man: Turn Off the Dark’ speak at a news conference in New York held to offer tips on keeping kids safe this Halloween. The actors reminded parents to examine all Halloween candy, never let kids eat unwrapped treats, ensure children wear flame-retardant costumes and avoid strangers.

Mark Kennedy/AP

 

Market Closes for October 25^th, 2012:

 

Market  Index	Close	Change
Dow  Jones	13103.68	+26.34
		+0.20%
S&P 500	1411.86	+3.11
		+0.22%
NASDAQ	2986.118	+4.423
		+0.15%
TSX	12295.95	+100.93
		+0.83%

International Markets

Market  Index	Close	Change
NIKKEI	9055.20	+100.90
		+1.13%
HANG  SENG	21810.23	+46.45
		+0.21%
SENSEX	18758.63	+48.61
		+0.26%
FTSE 100	5805.05	+0.27
		—

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.898	1.851
CND.   30 Year Bond	2.461	2.427
U.S.   10 Year Bond	1.8294	1.7889
U.S.   30 Year Bond	2.9787	2.9494

Currencies

BOC Close	Today	Previous
Canadian $	0.99464	0.99380
US   $	1.00539	1.00624
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28734	0.77680
US  $	1.29445	0.77253

Commodities

Gold	Close	Previous
London Gold   Fix	1712.90	1702.05
Oil	Close	Previous
WTI Crude Future	85.68	85.33
BRENT	110.38	109.58

Market Commentary:

Canada

By Lu Wang

Oct. 25 (Bloomberg) — Canadian stocks rose for the first time in five days as Goldcorp Inc. earnings beat estimates and amid speculation the Bank of Japan will add stimulus.

Raw-materials producers rose the most among the 10 industry groups in the Standard & Poor’s/TSX Composite Index, surging 2.2 percent, as Goldcorp jumped 8.2 percent. Suncor Energy Inc. advanced 1.3 percent as oil gained for the first time in six days.

The S&P/TSX advanced 105.21 points, or 0.9 percent, to 12,300.23 in Toronto. The benchmark index lost 2.2 percent over the previous four days. It rallied as much as 11 percent from its 2012 low on May 18 as the U.S. Federal Reserve and the European Central Bank took actions to stimulate the economy.

“Keep in mind that we are coming off a fairly sharp pullback,” Andrew Pyle, an associate portfolio manager at ScotiaMcLeod Inc. in Toronto, said in a phone interview. His team oversees about C$200 million ($200 million). “All you really need is a couple indications of positive or constructive sentiment and you start to see buying come back.”

“You got speculation that we are going to see further stimulus from a major central bank,” Pyle said. “Given the weight of resources in Canada, anything that improves the outlook for commodities obviously has a greater impact on the TSX.”

Japan’s central bank will consider increasing its asset- purchase program by 10 trillion yen ($125 billion) to 90 trillion yen at its Oct. 30 policy meeting, the Nikkei newspaper reported today.

Goldcorp climbed 8.2 percent to C$43.60, the biggest jump since June 1. The second-biggest gold miner by market value reported third-quarter earnings that beat analysts’ estimates after production was higher than projected. Profit excluding one-time items was 54 cents a share, exceeding the 45-cent average of 21 estimates compiled by Bloomberg.

Agnico-Eagle Mines Ltd. surged 8.9 percent to C$55.97. The gold producer boosted its 2012 gold production forecast as its third-quarter sales exceeded analysts’ estimates.

Energy stocks gained 0.8 percent as a group. Suncor increased 1.3 percent to C$33.14. Encana Corp., Canada’s largest natural gas producer, advanced 2.1 percent to C$22.31 after being boosted to outperform, an equivalent of buy, from market perform at BMO Capital Markets.

Lundin Mining Corp. slumped 5.7 percent, the most in the S&P/TSX, to C$5.15. Third-quarter revenue missed analysts’ estimates. The company, which produces base metals in Europe, reduced its 2012 capital spending by $30 million to $380 million.

US

By Rita Nazareth

Oct. 25 (Bloomberg) — U.S. stocks advanced, sending the Standard & Poor’s 500 Index up from the lowest level in seven weeks, amid better-than-estimated corporate earnings.

Procter & Gamble Co., the largest consumer-products maker, rallied 2.9 percent after reporting profit that topped analysts’ projections. A measure of homebuilders in S&P indexes declined 1.7 percent as Americans signed fewer contracts than forecast to buy previously owned homes. Apple Inc. fell 1.3 percent at 4:56 p.m. New York after profit missed analysts’ predictions.

The S&P 500 increased 0.3 percent to 1,412.97 at 4 p.m. New York time, snapping a two-day decline. The Dow Jones Industrial Average advanced 26.34 points, or 0.2 percent, to 13,103.68.

Volume for exchange-listed stocks in the U.S. was 6.3 billion shares, or 5.2 percent above the three-month average.

“The market is zigzagging each day on earnings,” said Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, which oversees $170 billion. He spoke in a telephone interview. “Earnings did come out better than estimated yet revenue surprises are negative.”

Fifty-four companies in the S&P 500 were scheduled to release results today. Third-quarter earnings at about 71 percent of the index’s companies beat analysts’ estimates, according to data compiled by Bloomberg. Sales missed forecasts at 60 percent of companies, the data showed.

Orders for U.S. business equipment stalled in September, capping a quarterly slump that signals investment will cool in the second half of the year. Fewer Americans filed first-time applications for unemployment benefits last week as the seasonal volatility at the start of the quarter wound down.

The S&P 500 fell 1.8 percent over the previous two days amid concern about a worsening earnings picture. The index is still up 12 percent this year on speculation central bankers will keep economies expanding.

“The market is trying to digest a lot of reports,” said Walter Todd, who oversees about $940 million as chief investment officer of Greenwood Capital in Greenwood.

Procter & Gamble added 2.9 percent to $70.07. Chief Executive Officer Bob McDonald is working to introduce new products to regain market share and reduce costs amid pressure from activist investor Bill Ackman. P&G said it held or gained market share in categories representing more than 45 percent of sales in the quarter, up from 30 percent in the fourth quarter.

Symantec Corp. rose 6.7 percent to $18.54. The security- software maker forecast sales that topped projections. Symantec is doing a better job now at signing up customers at a time of sluggish spending by corporations and weak personal-computer sales, said Daniel Ives, an analyst at FBR Capital Markets & Co.

Casino companies rallied as Wynn Resorts Ltd. added 7.3 percent to $120.43. The owner of casinos in Nevada and Macau reported profit that beat forecasts and doubled its dividend.

MGM Resorts International advanced 2.3 percent to $10.88, while Las Vegas Sands Corp. increased 4.4 percent to $46.25.

Akamai Technologies Inc. surged 6.7 percent to $38.54. The company, which helps businesses deliver data more quickly over the Internet, reported sales and earnings beat estimates. Akamai was also raised to outperform from market perform at Oppenheimer & Co. by equity analyst Timothy Horan. The 18-month target price is $50 per share.

ConocoPhillips gained 2.2 percent to $57.16. The Houston- based oil-and-gas producer said profit excluding one-time costs and gains was $1.44 a share, 25 cents more than the average of 18 analysts’ estimates compiled by Bloomberg.

Angie’s List advanced 27 percent to $11.56. The consumer- review website jumped after reporting sales that beat estimates as more members paid to use the service.

McKesson Corp. increased 4.1 percent to $93.16. The largest U.S. drug distributor agreed to purchase PSS World Medical Inc. for about $2.1 billion to expand in providing medical supplies and services. PSS World surged 32 percent to $28.57.

Apple and Amazon.com Inc. were among the companies reporting results after the market close today.

Apple slid 1.3 percent to $601.91 after the close of regular trading. Profit rose to $8.22 billion, or $8.67 a share, in the fiscal fourth quarter, Cupertino, California-based Apple said today in a statement. That compares with $8.3 billion, or $8.75 a share, the average of analysts’ estimates compiled by Bloomberg. The company’s sales and profit forecasts for the current quarter also fell short of predictions.

Apple sold 14 million iPads, fewer than the 15.3 million predicted by analysts in a Bloomberg survey, as customers delayed buying old versions before the release of the iPad mini in the current quarter.

Amazon.com fell 0.7 percent to $221.28 after the close of regular trading. The world’s largest online retailer reported revenue that missed estimates and posted its first quarterly net loss since 2003, dragged down by weakness at LivingSocial.com, which it partly owns.

Nine out of 11 stocks in a measure of homebuilders in S&P indexes retreated. PulteGroup Inc., the largest U.S. homebuilder by revenue, dropped 2.5 percent to $17.01. Toll Brothers Inc. retreated 3 percent to $34.21.

Cliffs Natural Resources Inc. plunged 11 percent to $38.20 as the largest U.S. iron-ore producer reported third-quarter results that missed analysts’ estimates.

Best Buy Co. dropped 10 percent to $15.17. The retailer resisting a takeover attempt by its founder said fiscal third- quarter profit will be “significantly” below last year’s results as sales at established stores continue to decline.

Shares of Internet-radio leader Pandora Media Inc. plunged 12 percent to $8.20. Apple and major music labels have intensified negotiations to start an advertising-supported Internet radio service by early next year, according to people with knowledge of the talks.

United Continental Holdings Inc. slid 5 percent to $19.26.

The world’s largest carrier posted third-quarter profit that trailed analysts’ estimates as fuel costs increased while traffic and unit revenue declined.

The New York Times Co. plunged 22 percent, the most since at least 1980, to $8.31. The newspaper publisher led by Chairman Arthur Sulzberger Jr. tumbled after reporting a surprise third- quarter loss as total advertising sales fell.

Mead Johnson Nutrition Co. dropped 8.6 percent to $63.53.

The world’s largest standalone baby formula maker reduced its earnings forecast for the year.

Investors are flocking to the options market at an unprecedented rate to place bets on Standard & Poor’s 500 Index volatility, a sign they see risks increasing after the calmest election year in two decades.

Outstanding contracts tied to the Chicago Board Options Exchange Volatility Index reached 9.01 million on Oct. 16, the highest level ever, according to data on open interest compiled by Bloomberg. Calls that pay should the VIX increase have almost tripled this year to 4.38 million, while puts climbed 52 percent to 2.14 million, the data show.

Traders are snapping up VIX options after the gauge, which moves in the opposite direction of the S&P 500 about 80 percent of the time, lost 22 percent in 2012 through yesterday. That’s the largest annual drop for any election year since it was created in 1990, according to data compiled by Bloomberg. The VIX has climbed 22 percent since Oct. 18 as the equity gauge retreated 3.3 percent.

“The market is uncertain of the outcome of the election,” Andrew Greeley, a senior managing director at Stamford, Connecticut-based Acorn Derivatives Management Corp., which manages more than $500 million in volatility assets, said yesterday. “It will be range-bound until it is decided. Soon after the election, we could experience a stronger move.”

 

Have a wonderful evening everyone.

 

Be magnificent!

 

The golden rule of conduct therefore, is mutual toleration,

seeing that we will never think alike and we shall see the Truth

in fragments and from different angles of vision.

Conscience is not the same thing for all.

While, therefore, it is a good guide for individual conduct,

imposition of that conduct upon all will be an insufferable interference

with everybody’s freedom of conscience.

Mahatma Gandhi, 1869-1948

As ever,

 

Carolann

 

I was brought up to believe that how I saw myself

was more important than how others saw me.

-Anwar Sadat, 1918-1981

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:

On this day in 1945, the United Nations became an official organization after a charter was ratified by 29 countries around the world.

And on this day in 1664, King Charles II wrote to his sister Henrietta:

You have heard of our taking of New Amsterdam, which lies just by New England.  ‘Tis a place of great importance to trade.  It did belong to England heretofore, but the Dutch by degrees drove our people out and built a very good town, but we have got the better of it, and ‘tis now called New York.

And also on this day in…

1934 – Mohandas Karamchand Gandhi, called Mahatma or “Great Soul,” resigns from Congress in India.

1938 – The Fair Labor Standards Act becomes law, establishing the 40-hour work week.

1947- Kevin Kline, actor, was born.

1952 – Presidential candidate Dwight D. Eisenhower announces that if elected, he will go to Korea.

2003 – The supersonic Concorde jet made its last commercial passenger flight from New York City’s John F. Kennedy International Airport to London’s Heathrow Airport, traveling at twice the speed of sound.

 

Fear is what stops you. Courage is what keeps you going. -Unknown

photos of the day

October 24, 2012

A sparrow is fed by a man at Madrid, Spain’s Retiro park during an autumn day.

Sergio Perez/Reuters

Fog lies in the valleys behind an autumnally colored tree seen from the Schauinsland mountain in the black forest, southwestern Germany.

Winfried Rothermel/AP

 

Market Closes for October 24^th, 2012:

 

Market  Index	Close	Change
Dow  Jones	13077.34	-25.19
		-0.19%
S&P 500	1408.75	-4.36
		-0.31%
NASDAQ	2981.695	-8.768
		-0.29%
TSX	12195.02	-30.82
		-0.25%

International Markets

Market  Index	Close	Change
NIKKEI	8954.30	-59.95
		-0.67%
HANG  SENG	21763.78	+66.23
		+0.31%
SENSEX	18710.02	-83.42
		-0.44%
FTSE 100	5804.78	+6.87
		+0.12%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.851	1.851
CND.   30 Year Bond	2.427	2.418
U.S.   10 Year Bond	1.7889	1.7572
U.S.   30 Year Bond	2.9494	2.9025

Currencies

BOC Close	Today	Previous
Canadian $	0.99380	0.99241
US   $	1.00624	1.00764
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28870	0.77598
US  $	1.29674	0.77117

Commodities

Gold	Close	Previous
London Gold   Fix	1702.05	1707.80
Oil	Close	Previous
WTI Crude Future	85.33	86.32
BRENT	109.58	109.99

Market Commentary:

Canada

By Inyoung Hwang

Oct. 24 (Bloomberg) — Canadian stocks fell, sending the Standard & Poor’s/TSX Composite Index lower for a fourth day, as declines in commodity shares overshadowed corporations topping earnings estimates and signs that a slump in China’s factory output is easing.

Barrick Gold Corp. and Goldcorp Inc. slid at least 0.7 percent as the metal’s price retreated. Encana Corp. dropped 3.1 percent after reporting a third-quarter loss. Canadian Pacific Railway Ltd. jumped 6 percent after reporting its best operating ratio in two years. Rogers Communications Inc. rallied 3.3 percent after posting quarterly profit that beat estimates.

The S&P/TSX lost 30.82 points, or 0.3 percent, to 12,195.02 in Toronto. The benchmark gauge for Canadian equities has erased 2.2 percent since Oct. 18 amid disappointing earnings results.

The index is down 1 percent in October, poised to end four consecutive months of gains.

“Despite some decent economic numbers out of China, there continues to be concern about commodity prices,” Timothy Lazaris, chief executive officer of Red Sky Capital Management Ltd. in Toronto, which oversees C$60 million ($60 million), said in a telephone interview. “The materials and energy sectors are weak again today.”

Raw material companies posted the biggest decline out of 10 groups in the S&P/TSX as the price of gold, copper and silver fell after a bigger-than-expected contraction in euro-area services and manufacturing added to concern that metals demand will slow.

Global equities rose earlier after a survey signaled a smaller contraction in China’s manufacturing and a report showed purchases of new homes in the U.S. rose in September to the highest level in more than two years.

Bank of Canada Governor Mark Carney said today the case for higher interest rates in Canada has become “less imminent.”

Speaking to reporters in Ottawa, Carney said that over time, interest rates are more likely to go up than not. The nation’s central bank also highlighted record household debt that may trigger a sudden drop in consumer spending in the world’s 11th largest economy.

Commodity companies sank as the Standard & Poor’s GSCI spot gauge of 24 raw commodities fell for the fourth straight session, losing 0.4 percent. The measure erased its gains for the year yesterday, poised for the first annual drop since 2008.

Barrick, the world’s largest gold producer, sank 0.7 percent to C$38.34. Goldcorp, the second-biggest producer, lost 3.5 percent to C$40.79.

Oil fell for a fifth day, the longest losing streak in five months, after the U.S. Energy Department said supplies rose three times as much as forecast last week, gaining 5.9 million barrels to 375.1 million. An increase of 1.8 million was expected.

Encana, Canada’s largest natural gas producer, dropped 3.1 percent to C$21.86 as third-quarter results were weighed down by a $1.19 billion writedown because of falling fuel prices.

Encana’s net loss was $1.24 billion compared with profit of $459 million a year earlier. Operating earnings fell 32 percent to $263 million, or 36 cents a share, from $389 million, or 53 cents, the company said.

Out of 247 companies in the S&P/TSX, 12 have reported earnings results. In the U.S., about 69 percent of the 192 S&P 500 companies that have posted quarterly results beat analysts’ earnings projections.

Canadian Pacific rallied 6 percent to C$93.18 after posting its best operating ratio in two years as new services and terminal closings helped boost profit 20 percent during Hunter Harrison’s first quarter as chief executive officer. That ratio, an industry benchmark of cost against revenue, fell to 74.1 in the third quarter, the lowest since 2010’s third quarter, based on data compiled by Bloomberg.

Rogers Communications added 3.3 percent to C$42.43.

Canada’s largest wireless carrier reported third-quarter profit that surpassed estimates, helped by an 18 percent jump in smartphone data spending and job cuts. Profit rose to 96 Canadian cents a share, excluding stock-based compensation expenses and restructuring and acquisition costs, beating the average estimate of 89 cents.

Teck Resources Ltd. rose 2.8 percent to C$31.39. Canada’s largest diversified miner said third-quarter adjusted earnings were 60 cents a share, exceeding the average analyst estimate by 1 cent.

US

By Rita Nazareth

Oct. 24 (Bloomberg) — U.S. stocks declined, sending the Standard & Poor’s 500 Index to a seven-week low, as the Federal Reserve’s call for moderate growth offset signs of improvement in Chinese factory output and America’s housing market.

Netflix Inc. plunged 12 percent after the world’s largest online video service cut its forecast for domestic growth.

Altera Corp. slumped 8.4 percent as the maker of programmable chips used in phone systems predicted sales that fell short of estimates. D.R. Horton Inc. and Toll Brothers Inc. added at least 1.5 percent to pace gains in homebuilders. Facebook Inc., the world’s biggest social networking site, surged 19 percent after reporting sales that topped analysts’ projections.

The S&P 500 declined 0.3 percent to 1,408.75 at 4 p.m. New York time, dropping 1.8 percent in two days. The Dow Jones Industrial Average lost 25.19 points, or 0.2 percent, to 13,077.34. Volume for exchange-listed stocks in the U.S. was 6.1 billion shares, or about in line with the three-month average.

“It’s been a pretty lackluster market,” Walter “Bucky” Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama, said in a telephone interview. “There’s nothing new or encouraging in terms of the Fed’s outlook regarding the economy. In addition to that, top line growth of companies has been disappointing.”

Equities erased gains as the Fed said the economy is still growing modestly and unemployment remains elevated as it maintains $40 billion in monthly purchases of mortgage-backed securities aimed at spurring the three-year expansion. An earlier advance was driven by a survey signaling a smaller contraction in China’s manufacturing. Purchases of new homes in the U.S. rose to the highest level in more than two years.

Forty-four companies in the S&P 500 were scheduled to release results today. Earnings at about 69 percent of the index’s companies beat analysts’ estimates, according to data compiled by Bloomberg. Third-quarter sales missed forecasts at 60 percent of companies, according to data compiled by Bloomberg, the data showed.

Concern about a worsening of the earnings picture has sent the S&P 500 down 3.9 percent from this year’s high on Sept. 14.

The decline has extended its October loss to 2.2 percent after the index capped four straight months of gains. The benchmark measure is still up 12 percent in 2012 on speculation central bankers will keep economies expanding.

Netflix lost 12 percent to $60.12. The company is counting on its profitable U.S. streaming and mail-order DVD businesses to pay for overseas growth, a plan analysts question with dwindling gains at home.

Altera retreated 8.4 percent to $29.89. Two customers are switching away from Altera’s processors to alternatives, the company said on a conference call with analysts yesterday.

That’s taking a bite out of fourth-quarter revenue. One of the customers is Huawei Technologies Co., China’s biggest maker of telecommunications-network equipment, representing $150 million in lost sales, according to a report by Chris Danely, an analyst at JPMorgan Chase & Co.

IAC/InterActiveCorp slid 8.4 percent to $48. The company founded by Barry Diller forecast a 2013 operating loss for units that include Newsweek, which it plans to convert to an online- only publication after 80 years of print.

Eli Lilly & Co. lost 2.7 percent to $50.50 after reporting third-quarter earnings that missed analyst estimates after generic competition reduced revenue from the schizophrenia treatment Zyprexa, once the company’s top-selling drug.

Tempur-Pedic International Inc. plunged 19 percent to $25.66. The mattress maker acquiring rival Sealy Corp. cut its 2012 profit forecast amid increased U.S. competition and weakening sales in Europe.

Brinker International Inc. sank 10 percent to $30.01. The owner of the Chili’s and Maggiano’s dining chains forecast profit that was less than analysts estimated.

A measure of 11 homebuilders in S&P indexes added 1 percent. D.R. Horton advanced 1.5 percent to $21.41. Toll Brothers increased 2 percent to $35.25.

Facebook surged 19 percent to $23.23. Ads delivered to people on mobile devices generated about $150 million during the quarter, or 14 percent of all advertising revenue. That compares with about $10 million in the second quarter, according to an estimate by Brian Wieser, an analyst at Pivotal Research Group.

The shares were raised to buy from hold at Stifel Nicolaus & Co.

Dow Chemical Co. climbed 4.7 percent to $29.88. The chemical producer eliminating 2,400 jobs to cope with a slowing economy reported better-than-expected earnings as volumes rose and plastics output benefited from low-cost natural gas.

Lockheed Martin Corp. increased 2.1 percent to $93.92. The world’s largest defense contractor said third-quarter profit rose 9.3 percent and raised its full-year earnings forecast. The company also projected a decline in 2013 sales.

US Airways Group Inc. jumped 2.3 percent to $12.37. The carrier that wants to merge with American Airlines said third- quarter profit more than doubled as passenger traffic increased and the price it paid for jet fuel declined.

Molina Healthcare Inc. rallied 14 percent to $25.81. The insurer specializing in Medicaid plans for the poor reported a profit on improved results from its biggest market.

Yelp Inc. climbed 7.4 percent to $25.77. The U.S. website that lets users review businesses ranging from plumbers to pet shops announced an acquisition to expand in Europe and reported sales that topped estimates.

The S&P 500 will advance 5 percent to about 1,480 over the next two weeks before the rally ends and stocks fall, according to Tom DeMark, the creator of indicators to show turning points in securities.

The gain would push the benchmark index above the 2012 intraday high of 1,474.51 reached on Sept. 14 before buyers are exhausted, said DeMark, whose prediction last year that the S&P 500’s decline would stop at 1,076 proved prescient when the index bottomed at 1,074.77 on Oct. 4, 2011. The advance will fizzle, with the S&P 500 heading for a potential decline of 12 percent to 17 percent, he said in an e-mailed statement.

“There is still some unfinished business upside that will totally surprise and shock most market followers,” DeMark, the founder of Market Studies LLC, wrote. The S&P 500 “rally is a solo move in a sense that the overall market trend has been down since Sept. 14,” he wrote.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Differentiation, infinitely contradictory, must remain,

but it is not necessary that we should hate each other;

it is not necessary therefore that we should fight each other.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

People don’t choose their careers; they are

engulfed by them.

-John Dos Passos, 1896-1970

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:

I attended the annual Barron’s The Art of Successful Investing in NYC yesterday and as always, it was a very educational and worthwhile experience.  I came away, as I do every year, with excellent ideas to explore for my own portfolio management strategies.  Many of the most highly esteemed money managers in the world, including Marc Faber from Hong Kong and Felix Zulauf from Switzerland,  Scott Black, Meryl Witmer, Bill Priest, among others, attend and give their very specific portfolio recommendations in the current investment environment.  I was pleased to see that several of them were recommending the exact same investments I have been recommending to you over the past year.   The one area where I have not been investing very much this past many years and where many of the money managers in attendance, (especially David Herro, named Morningstar’s International Stock Fund Manager of the Year in 2006 and International Manager of the Decade in 2010) are beginning to do so, is Japan.  In fact, Herro’s top holding is Daiwa.  When I got back to the office this morning (yes, after the red-eye from JFK on Cathay; watched the debate in the airport lounge), I did some research on Bloomberg.  I’ll watch it.  My fear is that the Japanese will start printing like the Fed is doing with QE and the yen declines.  It is a cheap stock, at $3.96, yielding almost 2%; still need to study it more before I recommend it.  All were bullish on gold, especially the mining stock that have underperformed the commodity.  Dr. Faber, ever the cynic, cautioned that if you own physical gold, you should be careful where you hold it because it can be confiscated.  I’m going home to sleep J.

P.S. The Alba truffles have arrived at those select NYC restaurants.

An interesting article in the Wall Street Journal today on preventing cognitive decline in aging.  You might want to drop the crossword puzzle and head out for a brisk walk of bike ride instead:

“In a study published in the journal of Neurology of almost 700 people born in 1936, researchers found physically active people showed fewer signs of brain shrinkage and other deterioration than those who got less exercise….’People who exercise more have better brain health,’ said Alan Gow, one of the study’s researchers and a senior research fellow at the University of Edinburgh in Scotland.’….Researchers found that higher levels of physical activity were associated with less brain atrophy, or shrinkage, and less brain damage.  They found no link between brain health and leisure activities.

‘We are coming to appreciate the fact that people with who remain physically active are less likely to show cognitive decline,’ said Stephen Rao, the director of the Cleveland Clinic Schey Center for Cognitive Neuroimaging…”  -WSJ, 10/23/12

On this day in…

1925 – Johnny Carson was born.

1929 – The first transcontinental air service begins from New York to Los Angeles.
1952 – The Nobel Prize for Medicine is awarded to Ukranian-born microbiologist Selmart A. Waksman for his discovery of an effective treatment of tuberculosis.
1954 – In Paris, an agreement is signed providing for West German sovereignty and permitting West Germany to rearm and enter NATO and the Western European Union.

1956 – Hungarian Revolution.
1983 – A truck filled with explosives, driven by a Moslem terrorist, crashes into the U.S. Marine barracks in Beirut, Lebanon. The bomb kills 237 Marines and injures 80. Almost simultaneously, a similar incident occurs at French military headquarters, where 58 die and 15 are injured.

1989 – Hungarian Independence.

Difficulties increase the nearer we get to the goal. – Johann Wolfgang von Goethe

photos of the day October 23, 2012

A streetlight and the London Eye are seen on a foggy autumn morning in central London.

Andrew Winning/Reuters

A man fixes a lantern at the Dragon Temple in Bangkok for Thailand’s Vegetarian Festival. Devotees all over the country eat only vegan or vegetarian food for 10 days in the belief that strict adherence to the diet and abstaining from all vices purifies the body.

Sukree Sukplang/Reuters

Market Closes for October 23^rd, 2012:

Market  Index	Close	Change
Dow  Jones	13102.53	-243.36
		-1.82%
S&P 500	1413.11	-20.79
		-1.44%
NASDAQ	2990.463	-26.494
		-0.88%
TSX	12225.84	-177.70
		-1.43%

International Markets

Market  Index	Close	Change
NIKKEI	9014.25	+3.54
		+0.04%
HANG  SENG	21697.55	+145.79
		+0.68%
SENSEX	18710.02	-83.42
		-0.44%
FTSE 100	5797.91	-85.00
		-1.44%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.851	1.846
CND.   30 Year Bond	2.418	2.435
U.S.   10 Year Bond	1.7572	1.7650
U.S.   30 Year Bond	2.9025	2.9355

Currencies

BOC Close	Today	Previous
Canadian $	0.99241	0.99277
US   $	1.00764	1.00728
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28862	0.77602
US  $	1.29847	0.77014

Commodities

Gold	Close	Previous
London Gold   Fix	1707.80	1721.65
Oil	Close	Previous
WTI Crude Future	86.32	90.21
BRENT	109.99	112.10

Market Commentary:

Canada

By Lu Wang

Oct. 23 (Bloomberg) — Canadian stocks slumped, giving the benchmark index its biggest decline since June, as the Bank of Canada strengthened its bias for raising interest rates and commodities erased their gains for the year.

All 10 industry groups in the Standard & Poor’s/TSX Composite Index slipped. Commodity companies dropped 2.1 percent, as Canadian Natural Resources Ltd. and Suncor Energy Inc. tumbled at least 2.1 percent. Royal Bank of Canada declined 1.8 percent after agreeing to buy Ally Financial Inc.’s Canadian auto-finance and deposit business. Canadian National Railway Co. lost 0.9 percent after saying it may not reach the upper end of a full-year profit forecast range.

The S&P/TSX slumped 177.7 points, or 1.4 percent, to 12,225.84 in Toronto. The benchmark gauge is down 0.7 percent in October, poised to end four consecutive months of gains. The index rallied as much as 11 percent from its 2012 low on May 18 as the Federal Reserve and the European Central Bank took actions to stimulate the economy.

“Most of the rally that we’ve seen over the past few months has been on central bank coordinated easing,” Mathieu Roy, a money manager at Louisbourg Investments Inc. in Moncton, New Brunswick, said in a telephone interview. The firm oversees about C$1.5 billion ($1.5 billion). “Any thoughts of them taking some of the liquidity away will have an impact on sentiment and stocks.”

Policy makers led by Governor Mark Carney kept the benchmark rate at 1 percent, where it’s been more than two years, and said “some modest withdrawal of monetary policy stimulus will likely be required.” The central bank retained its outlier status among the Group of Seven nations, citing rising household debts amid a “moderate” economic recovery.

The decision to keep the rate unchanged was expected by all 26 economists in a Bloomberg News survey.

Commodity companies sank as the Standard & Poor’s GSCI spot gauge of 24 raw materials fell for a third consecutive session, dropping 1.4 percent today. The last annual drop was in 2008.

Canadian Natural Resources, an oil and gas company, tumbled 3.7 percent to C$29.65. Suncor Energy, Canada’s largest energy company, slumped 2.1 percent to C$32.66.

Royal Bank declined 1.8 percent to C$56.94. The nation’s largest lender agreed to buy Ally Financial’s Canadian auto- finance and deposit business in a cash deal providing $4.1 billion in proceeds to Ally. The deal is the largest takeover ever for Royal Bank, eclipsing a $2.16 billion purchase of Centura Banks in 2001.

Toronto-Dominion Bank retreated 1.1 percent to C$82.09.

Canada’s second-largest bank agreed to buy the $5.9 billion U.S. credit card portfolio of Target Corp.

Canadian National, the country’s biggest railroad, slipped 0.9 percent to C$86.29. While the company said adjusted full- year earnings may increase as much as 15 percent, reaffirming a forecast made in July, Chief Financial Officer Luc Jobin cited a “challenging” view on the economy. Canadian National won’t announce profit targets for 2013 until its fourth-quarter earnings call in January, he said.

Canfor Pulp Products Inc. dropped 7.1 percent to C$9.02.

The Canadian pulp and paper producer reported its first quarterly loss since 2009. Stephen Atkinson, an analyst with BMO Capital Markets, lowered the stock’s rating to underperform, an equivalent of sell, from market perform, citing an “extended price war” in the pulp market.

US

By Rita Nazareth

Oct. 23 (Bloomberg) — U.S. stocks retreated, giving the Dow Jones Industrial Average its biggest decline since June, amid disappointing results at companies from 3M Co. to DuPont Co. and as commodities erased their gain for the year.

3M, the maker of products ranging from Scotch tapes to dental braces, and DuPont, the most valuable U.S. chemical maker, slumped at least 4.1 percent. Freeport-McMoRan Copper & Gold Inc. and Halliburton Co. dropped more than 3.1 percent as commodities sank amid concern about a global economic slowdown.

Facebook Inc. surged 9.5 percent at 4:39 p.m. New York time after posting sales that topped analysts’ projections.

The Standard & Poor’s 500 Index decreased 1.4 percent to 1,413.11 at 4 p.m. New York time, the lowest level since Sept.5. The Dow slumped 243.36 points, or 1.8 percent, to 13,102.53.

Volume for exchange-listed stocks in the U.S. was 6.6 billion shares, or 9.1 percent above the three-month average.

“That’s the reality of the situation that investors are facing,” said Bruce Bittles, chief investment strategist at Milwaukee-based RW Baird & Co., which oversees $85 billion. He spoke in a phone interview. “There’s not much growth in the economy. There’s lack of demand. How can revenues grow?”

Thirty-three companies in the S&P 500 were scheduled to release results today. Third-quarter sales missed forecasts at 60 percent of companies, according to data compiled by Bloomberg. Earnings at about 70 percent of the index’s companies beat analysts’ estimates, the data showed.

Concern about a worsening of the earnings picture has sent the S&P 500 down 3.6 percent from this year’s high on Sept. 14.

The decline has extended its October loss to 1.9 percent after the index capped four straight months of gains. The benchmark measure is still up 12 percent in 2012 on speculation central bankers will keep economies expanding.

All 10 groups in the S&P 500 retreated at least 0.8 percent today as commodity and financial shares had the biggest losses.

The Morgan Stanley Cyclical Index of companies most-tied to economic growth declined 1.1 percent.

“The earnings season has not gone as well as many would like,” said Tom Wirth, who helps manage $1.6 billion as senior investment officer for Chemung Canal Trust Co., in Elmira, New York. “In general, sales have been disappointing. There’s heightened concern about global growth.”

3M dropped 4.1 percent to $88.73. The St. Paul, Minnesota- based company, which makes a majority of revenue in Europe and Asia, cut the profit target and the top end of its goal for sales from existing businesses to reflect what it called “current economic realities.”

DuPont retreated 9.1 percent, the most in the Dow, to $45.25. The company said it will eliminate about 1,500 jobs after posting a smaller third-quarter profit than analysts estimated on falling demand for paint pigment.

Xerox Corp. fell 5.1 percent to $6.67. The provider of printers and business services said third-quarter profit fell 12 percent as demand for its equipment and supplies declined.

Commodity companies had the biggest losses in the S&P 500 among 10 industry groups, dropping at least 2.3 percent.

Freeport-McMoRan declined 3.9 percent to $38.98. Halliburton dropped 3.2 percent to $33.47.

The Standard & Poor’s GSCI spot gauge of 24 raw materials fell for a third consecutive session, dropping 1.4 percent today. It first erased gains for the year in May and the last time it happened was in July. The last annual drop was in 2008.

Refiners including Tesoro Corp. and Valero Energy Corp. fell on speculation by Deutsche Bank that a win by Republican presidential candidate Mitt Romney may threaten restrictions on U.S. crude exports. Tesoro fell 4.5 percent to $36.42. Valero dropped 3.8 percent to $28.36.

“We believe a Mitt Romney election win — broadly supported by the refining industry — could in fact threaten the crude export ban,” Paul Sankey, a Deutsche Bank energy analyst based in New York, wrote today in a note to investors.

Apple Inc. slid 3.3 percent to $613.36, after surging 4 percent yesterday. Chief Executive Officer Tim Cook introduced a smaller version of the iPad designed to keep customers from buying low-cost tablets from competitors Microsoft Corp., Amazon.com Inc. and Google Inc.

Apple, the most valuable company, unveiled the iPad at an event today in San Jose, California. The device boasts a  7.9- inch screen diagonally, compared with the 9.7-inch screen of the current iPad. It is priced starting at $329.

Regions Financial Corp. fell 7.6 percent to $6.54 after the bank said it would move as much as $400 million in loans to non- performing status in the fourth quarter.

Monster Beverage Corp. slid 10 percent to $41.08. The company was removed from the Conviction Buy list at Goldman Sachs Group Inc. The shares tumbled 14 percent yesterday after its energy drinks have been cited in the deaths of five people in the past year, according to incident reports that doctors and companies submit to the U.S. Food and Drug Administration.

Facebook Inc. rose 0.9 percent to $19.50 ahead of its earnings report. The shares rallied 9.5 percent to $21.36 after the close of regular trading. Third-quarter sales rose 32 percent to $1.26 billion, Menlo Park, California-based Facebook said today in a statement. That compares with the average estimate of $1.23 billion, according to data compiled by Bloomberg. Profit excluding certain items also exceeded projections by a penny.

Coach Inc. surged 7.4 percent to $58.15. The largest U.S. luxury handbag maker reported fiscal first-quarter profit that exceeded analysts’ estimates as it kept expenses for acquisitions and e-commerce from increasing too quickly.

Yahoo! Inc. rose 5.7 percent to $16.67. New Chief Executive Officer Marissa Mayer outlined her turnaround strategy for the biggest U.S. Web portal, emphasizing mobile technology and personalized services.

United Parcel Service Inc., which is considered an economic bellwether, rose 3 percent to $73.73. It reduced the top end of its 2012 profit forecast after posting third-quarter earnings that matched analysts’ estimates, buoyed by a gain in U.S. package volumes and international exports.

Harley-Davidson Inc. added 7.7 percent to $46.89. The biggest U.S. motorcycle maker surged after touting new models headed to dealerships by 2015. New bikes coming by 2015 will benefit from the company’s focus on the flagship Harley brand, Chief Executive Officer Keith Wandell said today.

Federal Reserve Chairman Ben S. Bernanke is trying to inject a little of the exuberance his predecessor Alan Greenspan called “irrational” into markets for everything from stocks to housing.

Bernanke, who is seeking to spur the economy with a third round of so-called quantitative easing, has said his stimulus works by lowering borrowing costs and encouraging investors to seek higher-yielding assets. Boosting home and equity prices through bond buying will encourage consumers and businesses to spend more, according to Bernanke.

Since these are the same assets that plummeted during the financial crisis after reaching record highs, “is there some risk you could start a new bubble and repeat the whole cycle? I suppose there is,” said Robert Shiller, the Yale University professor who forecast the end of the Internet boom in his book, “Irrational Exuberance,” which was published in March 2000, the month the Nasdaq Composite Index peaked before crashing 78 percent.

 

Have a wonderful evening everyone.

Be  magnificent!

 

To love is to understand and feel that the other person is different.

Swami Prajnanpad, 1891-1974

As ever,

Carolann

 

By nature, men are nearly alike; by practice,

they get to be wide apart.

-Confuscius, 551-479 BC

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:

On Saturday, October 20^th, hundreds of dog owners gathered in New York City for the 22^nd Annual Tompkins Square Halloween Dog Parade. Last year the costumes ranged from Lady Gaga to a Peacock. It’s a great event, where creativity is brought out. Not only do the dogs dress up, but a lot of owners will wear a costume to match their pooch! This year’s categories included Best in Show, Best Owner & Dog Costume, and Best Trick. Let’s see what this year brought to the parade:

Lynn Corsovoy holds her Yorkshire terrier Baxter, posing as spaghetti and meatballs at the Tompkins Square Halloween Dog Parade on October 20, 2012 in New York City.

Rescue dog Blue poses as Doggie Trump at the Tompkins Square Halloween Dog Parade.

To check out more photos from this exciting event, visit:

http://abcnews.go.com/Entertainment/slideshow/tompkins-squares-annual-halloween-dog-parade-17528809

Also on this day in…

1968 – Apollo 7 splashed down in the Atlantic Ocean. The spacecraft had orbited the Earth 163 times.

1981 – The Professional Air Traffic Controllers Organization was decertified by the federal government for its strike the previous August.
1983 – At the Augusta National Golf Course in Georgia, an armed man crashed a truck through front gates and demanded to speak with U.S. President Ronald Reagan.
1986 – U.S. President Reagan signed the Tax Reform Act of 1986 into law.
1991 – The European Community and the European Free Trade Association agreed to create a free trade zone of 19 nations by the year 1993.
1995 – The 50th anniversary of the United Nations was marked by a record number of world leaders gathering.
1999 – China ended its first-ever human rights conference in which it defied Western definitions of civil liberties.
2008 – The iTunes Music Store reached 200 million applications downloaded.

“Honesty is the first chapter in the book of wisdom.” – Thomas Jefferson

photos of the day October 22, 2012

Hindu women prepare oil lamps in front of the idols of the Hindu goddess Durga during Durga Puja festival in New Delhi. The five-day festival commemorates the slaying of a demon king by lion-riding, 10-armed goddess Durga, marking the triumph of good over evil.

A man sits on his trishaw as he waits for customers along the streets of Delhi.

Market Closes for October 22th, 2012:

Market  Index	Close	Change
Dow  Jones	13345.89	-+2.38
		+0.02%
S&P 500	1433.81	+0.62
		+0.04%
NASDAQ	3016.957	+11.334
		+0.38%
TSX	12403.54	-12.44
		-0.10%

International Markets

Market  Index	Close	Change
NIKKEI	9010.71	+8.03
		+0.09%
HANG  SENG	21697.55	+145.79
		+0.68%
SENSEX	18793.44	+111.13
		+0.59%
FTSE 100	5882.91	-13.24
		-0.35%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.874	1.846
CND.   30 Year Bond	2.451	2.435
U.S.   10 Year Bond	1.8134	1.7650
U.S.   30 Year Bond	2.9697	2.9355

Currencies

BOC Close	Today	Previous
Canadian $	0.99210	0.99277
US   $	1.00796	1.00728
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29609	0.77155
US  $	1.30641	0.76546

Commodities

Gold	Close	Previous
London Gold   Fix	1718.28	1721.65
Oil	Close	Previous
WTI Crude Future	88.73	90.21
BRENT	111.93	112.10

Market Commentary:

Canada

By Lu Wang

Oct. 22 (Bloomberg) — Canadian stocks fell after the government blocked Petroliam Nasional Bhd.’s C$5.2 billion ($5.23 billion) takeover of Progress Energy Resources Corp., casting doubts on Cnooc Ltd.’s bid for Nexen Inc.

Energy companies fell the most among 10 industry groups, sinking 1.6 percent, as Progress Energy and Nexen slumped more than 4 percent. Gold companies gained as a rebound in the metal’s price helped send Barrick Gold Corp. up 0.7 percent.

The Standard & Poor’s/TSX Composite Index lost 60.02 points, or 0.5 percent, to 12,355.96 at 2:48 p.m. in Toronto.

The benchmark gauge is up 0.3 percent in October, poised for the fifth consecutive month of gains, the longest streak since February 2011.

“The government objection has caused concern across the board in the oil and gas patch,” Robert McWhirter, portfolio manager with Selective Asset Management Inc. in Toronto, said in a phone interview. His firm manages about C$60 million. “People are having second thoughts as to whether those other specific acquisitions might go ahead.”

Progress Energy slumped 8.8 percent to C$19.74. Industry Minister Christian Paradis said in a statement that he wasn’t satisfied the acquisition by Petroliam Nasional, Malaysia’s state oil company known as Petronas, is in Canada’s interest.

Prime Minister Stephen Harper’s Conservative government reviewed the bid under its foreign takeover law, which says transactions must be judged to have a “net benefit” to Canada.

Investors say the rejection is a test case for the $15.1 billion bid by Cnooc of China for Nexen. Shares of the Calgary- based oil and natural gas producer dropped 4 percent to C$24.15.

Encana Corp., Canada’s largest natural gas producer that was touted as a takeover target for Exxon Mobil Corp., slipped 4.3 percent to C$22.76. Encana is a natural fit for the largest U.S. energy company, Kevin Kaiser, energy analyst at Hedgeye Risk Management, an independent investment research firm based in New Haven, Connecticut, said last week.

Ainsworth Lumber Co. tumbled 15 percent to C$2.30. The maker of oriented-strand board said it will raise $175 million through a rights offering and $350 million in a debt financing.

Gold producers gained as the metal’s prices rebounded from a six-week low. Gold has gained 11 percent in the third quarter after central banks in the U.S., China, Japan and Europe took action to boost their economies. Barrick, the world’s largest gold producer, advanced 0.7 percent to C$38.80. Goldcorp Inc. added 0.5 percent to C$43.27.

Laramide Resources Ltd., a uranium-mining company, rallied 30 percent to C$1.07 after Australia’s Queensland state ended a ban on extracting the mineral.

US

By Susanne Walker and Rita Nazareth

Oct. 22 (Bloomberg) — U.S. stocks erased losses as Apple Inc. led a rally in technology shares. Treasuries fell as a tightening presidential race made investors reluctant to speculate on the economy’s prospects.

The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,433.81 at 4 p.m. in New York after tumbling as much as 0.8 percent. Apple rallied 4 percent for its biggest gain since May.

Yields on 10-year Treasury notes added five basis points to 1.81 percent. Oil, natural gas, lead, nickel and zinc tumbled at least 1.5 percent to lead losses in commodities. S&P 500 futures added 0.1 percent at 5:23 p.m. after Yahoo! Inc. reported profit and sales that beat estimates.

Technology companies rose the most among 10 groups in the S&P 500. Apple, which is expected to announce a new, smaller version of its iPad tomorrow, contributed the most to the gain in the S&P 500. Peabody Energy Corp. and Caterpillar Inc. helped lead gains in the S&P 500 after reporting results, while General Electric Co. lost more than 1.5 percent for a second day after posting sales last week that trailed estimates.

“It really comes down to earnings at this point,” said Peter Jankovskis, co-chief investment officer for Oakbrook Investments in Lisle, Illinois, which manages more than $3 billion. He spoke in a telephone interview. “We’ve seen many companies beating earnings estimates. Yet investors are keeping an eye on their ability to grow revenue.”

The S&P 500 ended last week up 0.3 percent as a three-day rally was almost wiped out by a tumble on the final session. The index dropped 1.7 percent on Oct. 19, the most since June, as companies from General Electric to McDonald’s Corp. and Microsoft Corp. posted results below estimates.

Per-share profits have topped estimates at 69 percent of the 123 companies in the S&P 500 that have released earnings, according to data compiled by Bloomberg. Earnings have increased about 0.9 percent for the group amid a 1.9 percent gain in sales.

SunTrust Banks Inc., the eighth-largest U.S. lender, tumbled 3.4 percent after profit missed analysts’ estimates. VF Corp. declined as sales trailed the average forecast and the clothing company said the European market remains challenging.

Peabody Energy, the largest U.S. coal producer by volume, surged 12 percent after reporting third-quarter earnings that beat analysts’ estimates after selling more coal from its mines in Australia and Wyoming’s Powder River Basin.

Caterpillar, the world’s largest maker of construction and mining equipment, climbed 1.5 percent after reporting earnings that beat analysts’ estimates, while also predicting sales growth for next year that is the slowest in four years as the global economy decelerates.

Monster Beverage Corp. tumbled 14 percent, the most in more than four years, as its drinks were cited in five deaths in the past year, according to incident reports that doctors and companies submit to the Food and Drug Administration. The agency said the incidents, which are voluntarily reported, are considered to be allegations and no conclusion is drawn until a full investigation is completed. Evan Pondel, a spokesman for Monster, said the company is unaware of any fatality that has been caused by its drinks.

Yahoo! Inc. rose 3.4 percent after the close of regular trading. The biggest U.S. Web portal’s results beat estimates as Chief Executive Officer Marissa Mayer benefited from advertising demand and cost cuts during her first three months on the job.

U.S. stocks are beating every major asset class for the first time in 17 years even as economic growth weakens and profits rise at the slowest rate since 2009.

The S&P 500 rallied 14 percent in 2012 through last week, beating Treasuries, corporate bonds, commodities, the dollar and equities in Asia and Europe, data compiled by Bloomberg show.

The last time that happened, in 1995, the S&P 500 was posting the biggest annual advance of the last five decades. With a price-earnings ratio close to today’s level, the index gained another 93 percent in the next 2 1/2 years.

Treasuries extended last week’s decline as President Barack Obama and Republican challenger Mitt Romney were tied at 47 percent in a national NBC News/Wall Street Journal poll of likely voters before a final televised debate tonight.

“They won’t commit too much capital going into the elections,” said Jim Vogel, head of agency-debt research at FTN Financial in Memphis, Tennessee. The market will “judge” from tonight’s debate, he added.

Two-year and 30-year Treasuries also retreated, sending yields up one basis point to 0.31 percent and three basis points to 2.97 percent, respectively. The Treasury is scheduled to sell $99 billion of two-, five- and seven-year notes this week starting tomorrow.

The Stoxx Europe 600 Index slipped 0.4 percent after gaining as much as 0.3 percent. Royal Philips Electronics NV climbed 5.8 percent as the largest lighting company reported third-quarter profit that beat estimates. Nexans SA sank 6.6 percent, the most in six months, after the world’s second- biggest cable maker said its second-half margin won’t rebound as much as expected in July because of a slowdown in Europe, Brazil and Australia.

The euro gained against 14 of 16 major peers after voters backed Spain’s Prime Minister Mariano Rajoy in a regional election. The currency climbed 0.3 percent to $1.3058. After the close of the U.S. markets, Moody’s Investors Service downgraded five Spanish regions, while confirming ratings on five others.

Oil in New York retreated 1.5 percent to a two-week low of $88.73 a barrel after gaining as much as 0.8 percent earlier.

The Organization of Petroleum Exporting Countries governors meet in Vienna today and tomorrow to select a new secretary-general for the first time in six years, with four countries vying for the position.

Natural gas led losses in 14 of 24 commodities tracked by the S&P GSCI Index. Wheat climbed for a fourth day.

The yen weakened 0.7 percent against the dollar and 1 percent versus the euro. Its eight-day drop against the dollar is the longest run of declines in seven years. Japan’s exports fell the most since the earthquake in 2011, Finance Ministry data showed.

“The market is acting with an assumption that there will be additional stimulus by the Bank of Japan,” said Junichi Ishikawa, an analyst at IG Markets Securities Ltd. in Tokyo.

“The economies in Europe and Japan look bleaker compared with the U.S.”

The MSCI Emerging Markets Index was little changed, after falling as much as 0.5 percent earlier. Russia’s Micex added 0.8 percent as OAO Rosneft agreed to buy TNK-BP, a 50-50 venture between BP Plc and a group of billionaires, for $54.8 billion in the third-biggest oil acquisition ever. Rosneft rallied 2.6 percent. BP slipped 1.5 percent.

India’s Sensex Index jumped 0.6 percent after better-than- estimated results from Tata Consultancy and Bajaj Auto Ltd. The Shanghai Composite Index gained 0.2 percent on speculation China’s government will take steps to boost equities before a leadership transition next month.

“Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world.” – Harriet Tubman

 

Happy Monday everyone!

Be magnificent!

 

“Expect problems and eat them for breakfast.” – Alfred A. Montapert

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

Dear Friends,

Tangents:

October 19^th:

McGill and Harvard face off in an 1874 American Football game:

Also on this day in…

1781 – British General Lord Cornwallis surrenders at Yorktown Virginia, bringing to an end the American Revolution.
1873 – Yale, Princeton, Columbia and Rutgers universities draft the first code of football rules.

1931 – John Le Carre, writer, is born.

1982 – John Z. Delorean is arrested in a $24-million cocaine deal.
1985 – The first Blockbuster store opens.

Act with kindness, but do not expect gratitude. – Confucius

photos of the day October 19, 2012

A woman crosses a street during a rainy day in New York.

Jim Young/Reuters

People walk around candles covered in traditional Japanese papers and bearing messages from residents in the Tohoku area, which was devastated by last year’s earthquake and tsunami, at the ‘Smile for Japan’ event in Tokyo.

Kim Kyung-Hoon/Reuters.

Market Closes for October 19th, 2012:

Market  Index	Close	Change
Dow  Jones	13343.51	-205.43
		-1.52%
S&P 500	1433.19	-24.15
		-1.66%
NASDAQ	3005.623	-67.244
		-2.19%
TSX	12415.98	-50.14
		-0.40%

International Markets

Market  Index	Close	Change
NIKKEI	9002.68	+19.82
		+0.22%
HANG  SENG	21551.76	+33.05
		+0.15%
SENSEX	18682.31	-109.62
		-0.58%
FTSE 100	5896.15	-20.90
		-0.35%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.846	1.894
CND.   30 Year Bond	2.435	2.483
U.S.   10 Year Bond	1.7650	1.8238
U.S.   30 Year Bond	2.9355	3.0057

Currencies

BOC Close	Today	Previous
Canadian $	0.99277	0.98571
US   $	1.00728	1.01450
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29349	0.77310
US  $	1.30291	0.76751

Commodities

Gold	Close	Previous
London Gold   Fix	1721.65	1741.10
Oil	Close	Previous
WTI Crude Future	90.21	92.10
BRENT	112.10	114.17

Market Commentary:

Canada

By Eric Lam

Oct. 19 (Bloomberg) — Canadian stocks fell for the first time in a week after regulators rejected BCE Inc.’s C$3 billion ($3.1 billion) bid to acquire Astral Media Inc. and data signaled weakening economic growth.

Astral, a Quebec specialty channel provider, slumped 15 percent for the biggest drop in at least 24 years after the Canadian Radio-television and Telecommunications Commission said the deal would place too much market power with one company. BCE slipped 1.4 percent. Niko Resources Ltd. tumbled 14 percent after the natural gas producer lowered its full-year production forecast.

The Standard & Poor’s/TSX Composite Index lost 50.14 points, or 0.4 percent, to 12,415.98 in Toronto, paring an earlier decline of as much as 0.8 percent. The benchmark equity gauge rose 1.8 percent this week, its biggest weekly gain in more than a month. Energy and bank stocks contributed most to declines on the S&P/TSX as nine of 10 industries retreated.

“The decision by the CRTC yesterday not to allow BCE to buy Astral is not very good news as far as mergers and acquisitions is concerned,” said Stephen Gauthier, a fund manager with Fin-XO Securities Inc. in Montreal. His firm manages about C$600 million. “There were also inflation numbers that were below expectations. It shows the Canadian economy is really slowing down.”

Consumer prices advanced less than economists forecast last month, suggesting Bank of Canada Governor Mark Carney doesn’t need to emphasize raising interest rates at next week’s decision. The consumer price index rose 1.2 percent in September from a year ago, matching the August pace, Statistics Canada said.

The central bank’s preferred core rate slowed to 1.3 percent from 1.6 percent in August, the least in more than a year. Economists surveyed by Bloomberg forecast total inflation of 1.3 percent and a core rate of 1.4 percent.

Astral lost 15 percent to C$39.51. BCE, Canada’s largest telecommunications company, retreated 1.4 percent to C$42.86.

“Assuming Bell moves on, we don’t see any other party stepping forward to bid on Astral in totality,” said Adam Shine, analyst with National Bank Financial, in a note to clients today. “As to any urgency to scramble a deal together, we’re not convinced anyone needs to move quickly.”

Corus Entertainment Inc., a rival television media company, sank 2.8 percent to C$22.33 after Shine cut the firm’s rating to sector perform from outperform. He trimmed his one-year price forecast to C$24 from C$26 on forecasts for lower valuations after the CRTC decision.

Cenovus Energy Inc. retreated 1.2 percent to C$34.13 as crude declined the most in two weeks. Oil for November delivery dropped 2.2 percent to settle at $90.05 a barrel in New York.

Oil drilling services companies dropped after Schlumberger Ltd., the world’s largest oilfield-services provider, said in its third-quarter earnings report that it expects lower growth in Canada in the coming quarters. Trican Well Service Ltd. dropped 3.5 percent to C$13.15 and Precision Drilling Corp. fell 1.5 percent to C$8.06.

Niko, the worst-performing stock in the S&P/TSX this year, sank 14 percent to C$12.05. The company said it will pre-pay $90 million of its $310 million convertible debt due at the end of the year and evaluate options to pay for the rest.

“We believe this update is somewhat disappointing, in particular given our anticipation of further advancement on debt repaying,” said Jared Dziuba, analyst with BMO Capital Markets, in a research note today.

US

By Nikolaj Gammeltoft and Rita Nazareth

Oct. 19 (Bloomberg) — U.S. stocks fell, giving benchmark indexes their biggest declines since June, as Microsoft Corp. and General Electric Co. results missed estimates and euro-area leaders failed to discuss aid for Spain at a summit.

Microsoft slid 2.9 percent after the largest software maker posted earnings that fell short of estimates. General Electric lost 3.4 percent as third-quarter revenue missed forecasts.

McDonald’s Corp. slumped 4.5 percent as sales growth slowed at U.S. stores. Advanced Micro Devices Inc. dropped 17 percent after announcing a plan to cut staff by 15 percent.

The Standard & Poor’s 500 Index S&P 500 retreated 1.7 percent to 1,433.19 at 4 p.m. in New York, on the 25th anniversary of the worst one-day stock crash in history. The equity benchmark trimmed its gain for the week to 0.3 percent.

The Dow Jones Industrial Average declined 205.43 points, or 1.5 percent, to 13,343.51 today. About 7.3 billion shares traded hands on U.S. exchanges, 20 percent above the three-month average.

“The market is saying not so fast,” said Quincy Krosby, a market strategist for Newark, New Jersey-based Prudential Financial Inc., which oversees $961 billion. “People have been waiting for positive earnings surprises given that expectations have been lowered enough. In addition, there’s a perception that the European problems still have to be dealt with. Europe remains a headline risk.”

U.S. stocks snapped a three-day rally yesterday after Google Inc.’s third-quarter earnings missed analysts’ estimates.

The S&P 500 has climbed 14 percent so far this year as economic data topped estimates, companies posted better-than-expected earnings and the Federal Reserve announced a third round of bond purchases.

Per-share profits trailed analyst forecasts at half of the 18 companies in the S&P 500 that released results since the close of trading yesterday. Since the start of the earnings season, profits have exceeded estimates at about 69 percent of the 117 companies in the S&P 500 that released results, according to data compiled by Bloomberg.

A European Union summit failed to discuss further financial assistance for Spain, according to French President Francois Hollande. Germany and France agreed to enforce common banking regulation for the euro area’s 6,000 lenders by the end of next year.

In the U.S., sales of previously owned homes held near a two-year high in September, restrained by a lack of supply that is pushing prices higher. Purchases of existing houses, tabulated when a contract closes, decreased 1.7 percent to a 4.75 million annual rate, matching the median forecast of economists surveyed by Bloomberg, figures from the National Association of Realtors showed today in Washington.

All 10 industry groups in the S&P 500 declined today with indexes tracking technology, raw-materials producers and industrial stocks losing more than 1.7 percent. Caterpillar Inc. tumbled 3.2 percent to $83.86.

“People got spooked when Google went negative mid-morning and that accelerated the sell-off,” Donald Selkin, the New York-based chief market strategist at National Securities Corp., said via phone. His firm manages about $3 billion of assets.

“The market had gotten ahead of itself and the news of out Spain that they will delay seeking a bailout didn’t help.”

Google lost 1.9 percent to $681.79 after rising as much as 1.7 percent earlier. Microsoft retreated 2.9 percent, the biggest since November, to $28.64. The company reported a 22 percent drop in fiscal first-quarter net income to $4.47 billion, or 53 cents a share, amid declining sales of Windows, its operating system. That missed the 56-cent average estimate of analysts polled by Bloomberg. The company also posted sales of $16 billion, missing the average estimate of $16.4 billion.

General Electric lost 3.4 percent, the most since Nov. 9, to $22.03 after reporting third-quarter revenue that fell short of the average analyst estimate as the decelerating global economy eroded demand for equipment from medical scanners to jet engines.

McDonald’s had its largest drop since 2009, falling 4.5 percent to $88.72. The world’s largest restaurant chain by sales reported third-quarter profit fell 3.5 percent. Sales at U.S.stores open at least 13 months rose 1.2 percent in the quarter, marking the slowest growth in 11 quarters. Analysts projected an increase of 1.7 percent, according to 21 estimates compiled by Consensus Metrix.

Chipotle Mexican Grill Inc. plunged 15 percent to $243 for the second-biggest loss in the S&P 500. The burrito chain criticized by hedge fund manager David Einhorn fell after posting third-quarter profit that trailed analysts’ estimates on slowing store sales growth.

AMD had the biggest drop in the benchmark index for American equities, losing 17 percent to $2.18, its lowest level since 2009. The second-largest maker of processors for personal computers said that the job cuts will save $190 million next year, enabling the company to break even on quarterly revenue of $1.3 billion. AMD also forecast fourth-quarter sales that will miss analysts’ estimates.

Apple Inc. slipped 3.6 percent to $609.84. Shares of the iPhone maker have fallen 13 percent from an all-time high of $702.10 on Sept. 19, driving the stock below its average price in the past 100 days for the first time since July. The shares are still up 51 percent this year.

Intel Corp., the world’s largest semiconductor maker, lost 1.9 percent to $21.27, while Cisco Systems Inc., the largest maker of networking equipment, retreated 3 percent to $18.04.

SanDisk Corp. surged 2.7 percent to $44.02. The maker of flash memory for mobile devices reported quarterly profit and revenue that beat analysts’ estimates on strong retail sales and high demand for mobile devices.

Capital One Financial Corp. added 6 percent to $60.75. The sixth-biggest U.S. bank by deposits rose after reporting a 45 percent increase in third-quarter profit that topped analysts’ forecasts.

A quarter century after the worst one-day stock crash in history, measures to prevent a repeat are failing to keep investors from losing confidence in the market.

The 23 percent plunge in the Dow on Oct. 19, 1987, came amid signs of a slowing economy, the threat of higher taxes and concern among individuals that trading was rigged for insiders.

Today’s investors have pulled $440 billion from U.S. equity mutual funds since 2008 and sent trading to the lowest levels in at least four years, retrenching after the worst financial crisis since the Great Depression and the May 2010 stock crash, data compiled by Bloomberg and the Investment Company Institute show.

Trading in an exchange-traded fund tracking the Chicago Board Options Exchange Volatility Index has jumped more than any other U.S. ETF this year, drawing investors betting that stocks will decline after the biggest rally in three years.

Trading in the fund, which is designed to return twice the daily performance of VIX short-term futures, has surged since September on speculation it will rebound from a 96 percent plunge this year. Demand is increasing for securities that move in the opposite direction as the S&P 500 amid political gridlock in Washington and a European debt crisis. The VIX rose 14 percent, the most since July, to 17.06 today.

“There’s a very high probability of a major pullback over the next six months, which would lead to a spike in volatility,” Steven Ayer, managing director and partner at Chicago-based HighTower Advisors, said yesterday in a phone interview. His firm manages about $25 billion. “It could come from the U.S. election and the fiscal cliff, it could come out of Europe and it could come in the form of another slow-down in economic growth. All of this could derail this liquidity high market. Take your pick.”

 

Have a wonderful weekend everyone.

Be magnificent!

 

One person is not another person.

What is he, then?  He is unique.

Swami Prajnanpad, 1891-1974

 

As ever,

Carolann

 

The mind is not a vessel to be filled

but a fire to be kindled.

-Plutarch, 46-120 AD

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:

Driving back to the office tonight after a brief dinner interlude, we were listening to the fabulous Terry Gross on NPR’s nightly program Fresh Air.  Tonight, Terry was interviewing Sherry Turkle.  Turkle is an MIT Professor and an expert on mobile technology, social networking and sociable robotics and her research puts her at the forefront of understanding the growing impact of technology on human relations.   We saw her at the World Business Forum in New York earlier this month.

Turkle is a founding Director of the MIT Initiative on Technology and Self; her presentation in NYC focused on our relationship with digital technology and how it is affecting the way we behave and interact with one another.  Her latest book, Alone Together, has just been published in paperback.  Worth the read.

Today in History:

1918 – Czechs seize Prague and renounce Hapsburg’s rule. Marian column in Old Town Square, Prague, the Czech Republic, destroyed by a crowd in 1918 as a symbol of Habsburg Monarchy.

On this day in 1977, Reggie Jackson earned the nickname Mr. October for hitting three home runs in Game 6 of the World Series, leading the NY Yankees to the championship over the Los Angeles Dodgers. –Wall Street Journal, 10/18/12.

And also on this day in…

1904 – A.J. Liebling, journalist, was born.

1918 – Czechs seize Prague and renounce Hapsburg’s rule.
1919 – Madrid opens a subway system.
1921 – Russian Soviets grant Crimean independence.

1926 – Chuck Berry was born.
1939 – President Franklin D. Roosevelt bans war submarines from U.S. ports and waters.
1944 – Lt. General Joseph Stilwell is recalled from China by president Franklin Roosevelt.
1950 – The First Turkish Brigade arrives in Korea to assist the U.N. forces fighting there.
1967 – A Russian unmanned spacecraft makes the first landing on the surface of Venus.

Freedom of the Press belongs to those who own one.  –A.J. Liebling

photos of the day October 18, 2012

A child lies inside a work by Australian artist Sue Roberts titled ‘the listrumpet’ which is part of the ‘Sculpture by the Sea’ exhibition at Sydney’s Tamarama Beach. The free and temporary outdoor exhibition, now in its 16th year, stretches for 1.24 miles along the coastline popular with walkers, joggers and tourists.

Tim Wimborne/Reuters

A woman jumps on ‘Sacrilege, 2012’ art works by artist Jeremy Deller at the Esplande des Invalides in Paris. ‘Sacrilege’ is an inflatable piece representing Stonehenge, a megalithic monument in Britain.

Jacky Naegelen/Reuters

Market Closes for October 18th, 2012:

Market  Index	Close	Change
Dow  Jones	13548.94	-8.06
		-0.06%
S&P 500	1457.36	-3.55
		-0.24%
NASDAQ	3072.867	-31.257
		-1.01%
TSX	12466.18	+4.93
		+0.04%

International Markets

Market  Index	Close	Change
NIKKEI	8982.86	+176.31
		+2.00%
HANG  SENG	21518.71	+102.07
		+0.48%
SENSEX	18791.93	+181.16
		+0.97%
FTSE 100	5917.05	+6.14
		+0.10%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.894	1.912
CND.   30 Year Bond	2.483	2.506
U.S.   10 Year Bond	1.8238	1.8185
U.S.   30 Year Bond	3.0057	3.0032

Currencies

BOC Close	Today	Previous
Canadian $	0.98571	0.97828
US   $	1.01450	1.02220
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28800	0.77640
US  $	1.30667	0.76530

Commodities

Gold	Close	Previous
London Gold   Fix	1741.10	1750.20
Oil	Close	Previous
WTI Crude Future	92.10	92.12
BRENT	114.17	115.29

Market Commentary:

Canada

By Eric Lam

Oct. 18 (Bloomberg) — Canadian stocks rose for a fourth day as investors weighed U.S. economic data and awaited news from a two-day meeting of European Union leaders in Brussels.

Encana Corp. rose 3.8 percent after an analyst with Hedgeye Risk Management said the company is next on the list of takeover targets for Exxon Mobil Corp. Lake Shore Gold Corp. and Premier Gold Mines Ltd. slipped at least 4.2 percent as the price of the metal declined for the first time in three days.

The Standard & Poor’s/TSX Composite Index added 4.87 points, or less than 0.1 percent, to 12,466.12 in Toronto. The benchmark equity gauge is up 2.2 percent this week, on pace for its biggest weekly gain in more than a month.

“The past few months markets have been moving higher, but at low volumes so there hasn’t been much conviction,” said Rob Edel, chief investment officer with Nicola Wealth Management, in a phone interview from Vancouver. His firm manages about C$1.8 billion ($1.8 billion). “They’ve removed some of the tail risk on Europe, but what they are doing will take years. It’s like herding cats, so it can be hard to be super optimistic.”

More Americans than forecast filed applications for unemployment benefits last week, reflecting an unwinding of adjustments for seasonal swings at the start of a quarter. An index of U.S. leading economic indicators rose in September by the most in seven months, while manufacturing in the Philadelphia region expanded in October for the first time in six months.

As leaders gather in Brussels for a two-day summit, French President Francois Hollande said efforts to stem the turmoil that began in 2009 could unravel if the EU fails to deliver on its promises. Divisions have flared over the scope of the European Central Bank’s supervisory powers and how losses would be shared.

Financial stocks contributed most to gains on the S&P/TSX as five of 10 industries rose on trading volumes 2.3 percent above the 30-day average. Gold stocks paced declines on the index.

Fiera Capital Corp., the best-performing wealth manager among its North American peers this year, jumped 6.6 percent to C$8.10, its biggest gain since February.

The firm is looking for acquisitions of companies with assets of up to C$2 billion, President Sylvain Brosseau said in an interview with Bloomberg earlier this week.

Encana surged 3.8 percent to C$23.64, its highest close in more than a year. Kevin Kaiser with Hedgeye said in an interview with Bloomberg the chances of Exxon Mobil buying the company are “now very real” after the U.S. energy firm, the largest in the world, agreed to buy Celtic Exploration Ltd. in a $2.92 billion deal yesterday.

The potential deal for Encana is likely well in the $30-a- share range, with even a $34 a share offer a “steal” for Exxon, Kaiser said.

Lake Shore Gold slumped 5.9 percent to 80 Canadian cents and Premier Gold Mines retreated 4.2 percent to C$5.44 as gold for December delivery slid 0.5 percent to settle at $1,744.70 an ounce in New York. Barrick Gold Corp., the world’s largest gold producer, slipped 1.9 percent to C$38.37 and Goldcorp Inc. fell 2.6 percent to C$42.20.

Silvercorp Metals Inc. retreated 2 percent to C$5.87 and Silver Wheaton Corp. declined 1.1 percent to C$38.63. Silver for December delivery fell 1.1 percent to $32.868 an ounce.

Husky Energy Inc. tumbled 2.9 percent to C$27.37 after analysts at Goldman Sachs Group Inc. cut their rating on the stock to sell from neutral.

Cenovus Energy Inc. lost 0.1 percent to C$34.53, paring earlier losses of as much as 1.3 percent. Oil for November delivery fell 2 cents to settle at $92.10 a barrel in New York, erasing an earlier loss of as much as 1.6 percent.

Astral Media Inc., the Canadian broadcaster that BCE Inc. agreed to buy for C$3 billion ($3.1 billion), slumped 3.7 percent to C$46.65. The Canadian Radio-Television Telecommunications Commission, the country’s telecommunications regulator, officially rejected BCE’s offer after the close of trading.

US

By Nikolaj Gammeltoft

Oct. 18 (Bloomberg) — U.S. stocks fell, snapping a three- day advance in the Standard & Poor’s 500 Index, as Google Inc. pulled down technology shares after reporting third-quarter profit and sales that missed estimates.

Google dropped 8 percent after the earnings report was filed inadvertently during regular trading hours. Technology shares had the biggest decline among 10 groups in the S&P 500.

Philip Morris International Inc. dropped 4.2 percent as earnings trailed analysts’ estimates. Travelers Cos. gained 3.6 percent as earnings more than doubled on lower claims costs tied to natural disasters.

The S&P 500 fell 0.2 percent to 1,457.34 at 4 p.m. in New York. The index gained as much as 0.2 percent earlier as a rise in jobless claims was offset by better-than-estimated data on leading indicators and Philadelphia manufacturing. The Dow Jones Industrial Average slid 8.06 points, or 0.1 percent, to 13,548.94 today. The Nasdaq-100 Index tumbled 1.1 percent to 2,744.17. About 6.9 billion shares traded hands on U.S. exchanges, 14 percent above the three-month average.

“Google failed to meet expectations and then also mistakenly released in the middle of the day,” Giri Cherukuri, a portfolio manager for Oakbrook Investments LLC, which manages $3 billion, said in a telephone interview. “Google is a big company and on top of the fact that they missed estimates, they talked about advertising in the online world not doing as well as previously thought.”

Trading in Google’s stock was halted at about 12:50 p.m. New York time, and resumed at 3:20 p.m. after the company released a final version of its earnings document. The company said R.R. Donnelley & Sons Co. released a draft of the quarterly results without permission. Google tumbled the most since January, losing 8 percent to $695.

Google’s profit and sales missed analysts’ estimates, a sign that its tools are becoming less valuable to advertisers while costs associated with expansion into new businesses are chipping away at profitability. The average amount advertisers paid each time a user clicks on a promotion declined about 15 percent from a year earlier, and was 3 percent less than the prior period.

“The downward move in the market is more a result of the fundamentals,” Walter Todd, who oversees about $940 million as chief investment officer of Greenwood Capital in Greenwood, said in a phone interview. “The fact that it was released early, it exacerbates the dynamic but I don’t think we would have fallen any less if the numbers had come out after the market.”

Technology shares erased 1.5 percent as a group in the S&P 500. Apple Inc. slid 1.9 percent to $632.64 and International Business Machines Corp. dropped 2.8 percent to $194.96. AOL Inc. declined 1.9 percent to $36.36. Online-coupon provider Groupon Inc. slipped 3.4 percent to $4.91. Facebook Inc., the world’s most popular social-networking service, lost 4.6 percent to $18.98.

Microsoft Corp. fell 2.4 percent to $28.79 at 5:11 p.m. as it released results after the close of regular trading. The largest software maker reported fiscal first-quarter profit and sales that fell short of analysts’ estimates as declining personal computer sales crimped demand for Windows, its core operating system.

U.S. stocks slumped early in the trading day as Labor Department figures showed more Americans than forecast filed applications for unemployment benefits last week, reflecting an unwinding of adjustments for seasonal swings at the start of a quarter.

Equities pared declines as the index of U.S. leading economic indicators rose in September by the most in seven months, boosted in part by a jump in permits for home construction that’s helping underpin the expansion.

Manufacturing in the Philadelphia region expanded in October for the first time in six months, a sign the industry may be starting to stabilize. The Federal Reserve Bank of Philadelphia’s general economic index rose to 5.7 in October from minus 1.9 in September. A reading of zero is the dividing line between expansion and contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware.

“The market is digesting some strong gains earlier in the week and the disappointing jobless claims number,” Jim Russell, the Cincinnati-based chief equity strategist at U.S. Bank Wealth Management, which oversees about $113 billion, said in a phone interview. “The data cadence is two steps forward, one step back right now with a positive bias. It does appear as if things are firming up at the margin for the U.S. economy and the Philly Fed report confirms that.”

Economic issues including jobs are central to the race for the American presidency. Gallup’s daily tracking of registered voters conducted Oct. 10 through Oct. 16 showed President Barack Obama with 46 percent and Republican challenger Mitt Romney with 48 percent support. The margin of error is two percentage points.

“Everything seems paused until we get clarity on the election since there are a lot of economic policy issues that need to be resolved before the end of the year,” Thomas Nyheim, a Wilmington, Delaware-based fund manager for Christiana Trust, which oversees about $13 billion, said in a telephone interview.

The S&P 500 has rallied 16 percent so far this year as economic data topped estimates, companies posted better-than- expected earnings and the Fed announced a third round of bond purchases.

As many as 28 companies listed on the S&P 500 release results today, according to data compiled by Bloomberg. Of the 104 companies in the benchmark index that have reported since Oct. 9, 75 posted earnings that exceeded analyst estimates, while 26 missed them, the data showed.

Philip Morris International, the world’s largest publicly traded tobacco company, dropped 4.2 percent to $88. The maker of Marlboro cigarettes posted third-quarter profit that trailed analysts’ estimates. European Union nations facing a debt crisis and high unemployment saw smokers cut back or switch to contraband cigarettes or roll-your-own varieties. Sales in the region slipped 15 percent in the third quarter.

Morgan Stanley slipped 3.8 percent, the most since July, to $17.79 even after the sixth-largest U.S. bank reported results that beat analysts’ estimates, as revenue from fixed-income trading almost doubled from the second quarter. Morgan Stanley had a loss of $1.01 billion, or 55 cents a share.

Boston Scientific Corp. fell 3.9 percent to $5.40. The heart-device maker lowered its forecast for full-year revenue to no more $7.24 billion from a previous range of $7.2 billion to $7.4 billion. Analysts on average estimated $7.26 billion in sales for the year.

Travelers climbed 3.6 percent to $73.94 for the biggest gain in the Dow. Chief Executive Officer Jay Fishman, 59, has bought back shares, raised rates for coverage and changed policy terms to improve shareholder returns as near record-low interest rates pressure income from the investment portfolio.

Property-casualty insurers have benefited from fewer natural disasters this year after record losses in 2011.

Allstate Corp., the largest publicly traded U.S. home and auto insurer, advanced 1.8 percent to $42.62 today. Chubb Corp., which competes with Travelers selling commercial coverage, jumped 2.9 percent to $81.19. Ace Ltd. gained 3 percent to $81.70.

EBay Inc. rallied 5.5 percent to $50.83, the highest level since 2005. The world’s largest online marketplace rose the most in three months after third-quarter results fueled optimism that the company’s turnaround is gathering steam. Chief Executive Officer John Donahoe has been spending money on mobile technology, marketing campaigns and a website redesign, seeking to vault the company beyond its roots in Internet auctions.

MGM Resorts International jumped 2.3 percent to $11.17. MGM China Holdings Ltd., a venture between Pansy Ho and MGM Resorts, won a land grant to develop a second casino resort in Macau. The approval allows MGM China to build on the city’s increasingly popular Cotai strip, where the operator doesn’t have a presence.

Lam Research Corp. rose 7.2 percent to $36.01 for the biggest gain in the S&P 500. The chip-equipment manufacturer reported first-quarter earnings that beat analyst estimates.

 

Have a wonderful evening everyone.

Be magnificent!

 

When you see that everything is different, that everything is unique,

you become one with the whole.

This is because you no longer judge, compare, or attribute particular characteristics.

Remove the characteristics,

and you no longer have an entity.

Swami Prajnanpad, 1891-1974

As ever,

Carolann

 

Don’t fight forces; use them.

-Buckminster Fuller, 1895-1983

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:

October

-by Robert Frost

O hushed October morning mild,

Thy leaves have ripened to the fall;

Tomorrow’s wind, if it be wild,

Should waste them all.

The crows above the forest call;

Tomorrow they may form and go.

O hushed October morning mild,

Begin the hours of this day slow.

Make the day seem to us less brief.

Hearts not averse to being beguiled,

Beguile us in the way you know.

Release one leaf at break of day;

At noon release another leaf;

One from our trees, one far away.

Retard the sun with gentle mist;

Enchant the land with amethyst.

Slow, slow!

For the grapes’ sake, if they were all,

Whose leaves already are burnt with frost,

Whose clustered fruit must else be lost-

For the grapes’ sake along the wall.

October 17^th, 1989:

The worst earthquake in 82 years strikes San Francisco bay area minutes before the start of a World Series game there. The earthquake registers 6.9 on the Richter scale–67 are killed and damage is estimated at $10 billion

O hushed October morning mild,

Thy leaves have ripened to the fall;

Tomorrow’s wind, if it be wild,

Should waste them all.

The crows above the forest call;

Tomorrow they may form and go.

O hushed October morning mild,

Begin the hours of this day slow.

Make the day seem to us less brief.

Hearts not averse to being beguiled,

Beguile us in the way you know.

Release one leaf at break of day;

At noon release another leaf;

One from our trees, one far away.

Retard the sun with gentle mist;

Enchant the land with amethyst.

Slow, slow!

For the grapes’ sake, if they were all,

Whose leaves already are burnt with frost,

Whose clustered fruit must else be lost—

For the grapes’ sake along the wall

And also on this day in…

1913 – Zeppelin LII explodes over London, killing 28.

1915 – Arthur Miller, writer, is born.

1918 – Rita Hayworth, actor, is born.

1931 – Al Capone isconvicted of income tax evasion; sentenced to 11 years in jail – Alcatraz.
1933 – Due to rising anti-Semitism and anti-intellectualism in Hitler’s Germany, Albert Einstein immigrates to the United States. He makes his new home in Princeton, N.J.
1941 – The U.S. destroyer Kearney is damaged by a German U-boat torpedo off Iceland; 11 Americans are killed.
1956 – The nuclear power station Calder Hall is opened in Britain. Calder Hall is the first nuclear station to feed an appreciable amount of power into a civilian network.
1972 – Peace talks between Pathet Lao and Royal Lao government begin in Vietnam.
1989 – The worst earthquake in 82 years strikes San Francisco bay area minutes before the start of a World Series game there. The earthquake registers 6.9 on the Richter scale–67 are killed and damage is estimated at $10 billion.
Treasure your relationships, not your possessions. –Anthony J. D’Angelo

photos of the day October 17, 2012

A flock of starlings flies over the vineyards in Tartegnin near Geneva, Switzerland.

Denis Balibouse/Reuters

Three year-old Annie Wood rides her scooter in front of changing autumn leaves in Sheffield Park Gardens near Haywards Heath in southern England.

Luke MacGregor/Reuters

Market Closes for October 17th, 2012:

Market  Index	Close	Change
Dow  Jones	13557.00	+5.22
		+0.04%
S&P 500	1460.91	+5.99
		+0.41%
NASDAQ	3104.124	+2.950
		+0.10%
TSX	12461.25	+53.55
		+0.43%

International Markets

Market  Index	Close	Change
NIKKEI	8806.55	+105.42
		+1.21%
HANG  SENG	21416.64	+209.57
		+0.99%
SENSEX	18610.77	+33.07
		+0.18%
FTSE 100	5910.91	+40.37
		+0.69%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.912	1.825
CND.   30 Year Bond	2.506	2.442
U.S.   10 Year Bond	1.8185	1.7186
U.S.   30 Year Bond	3.0032	2.9153

Currencies

BOC Close	Today	Previous
Canadian $	0.97828	0.98668
US   $	1.02220	1.01350
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28275	0.77957
US  $	1.31123	0.76264

Commodities

Gold	Close	Previous
London Gold   Fix	1750.20	1748.90
Oil	Close	Previous
WTI Crude Future	92.12	92.09
BRENT	115.29	116.27

Market Commentary:

Canada

By Eric Lam

Oct. 17 (Bloomberg) — Canadian stocks rose to their highest level in a month as energy shares rallied after Exxon Mobil Corp. agreed to acquire oil and gas producer Celtic Exploration Ltd. and U.S. housing starts jumped to a four-year high.

Celtic Exploration jumped 45 percent after agreeing to a C$2.86 billion ($2.91 billion) sale to Exxon Mobil. Encana Corp. increased 2.4 percent. Ivanplats Ltd. rose 6.3 percent in its first day of preliminary trading after raising C$300.8 million in an initial public offering yesterday.

The Standard & Poor’s/TSX Composite Index added 53.54 points, or 0.4 percent, to 12,461.24 in Toronto, its highest close since Sept. 14. Energy companies contributed the most to gains in the benchmark equity gauge as six of 10 industries advanced on trading 16 percent higher than the 30-day average.

“There’s a positive tone in oils because of the surprise takeover of Celtic Exploration,” said Bob Decker, a money manager at Aurion Capital in Toronto. His firm manages about C$5.5 billion.

“It’s put a bid on most of the E&P companies with similar assets and put a general positive tone on the sector,” Decker said, referring to energy exploration and production companies that also have interests in the Montney and Duvernay shale fields in which Celtic operates.

Celtic surged 45 percent to C$26.29. Shareholders will receive C$24.50 a share and half a share of a new company that will hold assets not included in the agreement, Calgary-based Celtic said in a statement. The deal will give Exxon Mobil, the world’s largest energy company, significant new production in the Alberta shale fields, where oil and gas are extracted by horizontal drilling and hydraulic fracturing.

Among Montney and Duvernay shale companies, Cequence Energy Ltd. added 12 percent to C$1.98, NuVista Energy Ltd. gained 13 percent to C$5.14, Advantage Oil & Gas Ltd. rose 1.6 percent to C$3.88 and Trilogy Energy Corp. advanced 6.1 percent to C$27.69.

New-home construction in the U.S. surged to the highest level in four years, raising hopes that the economy of the world’s biggest oil-consuming country is improving. Crude for November delivery rose three cents to settle at $92.12 a barrel in New York, reversing earlier losses of as much as 0.6 percent after the U.S. Energy Department said inventories rose more than analysts expected last week.

Encana added 2.4 percent to C$22.78 and Suncor Energy Inc. increased 1.3 percent to C$33.60.

Harry Winston Diamond Corp. rose 3.7 percent to C$13.83, paring earlier gains of as much as 10 percent. The mining company, which owns 40 percent of the Diavik diamond mine in the Northwest Territories, is in talks with major European luxury goods companies such as PPR SA and LVMH Moet Hennessy Louis Vuitton SA to sell its jewelry and watches business, according to Challenges, a weekly French business magazine.

Ivanplats, a mining company founded by billionaire Robert Friedland, rose 6.3 percent to C$5.05, trading on an “if and when issued basis” ahead of its official listing on the TSX. The company yesterday sold 63.3 million shares at C$4.75.

Kirkland Lake Gold Inc. slumped 4.9 percent to C$9.99 after announcing it will sell C$60 million in convertible notes. The company plans to use the cash to pay for production expansions at its mine in Kirkland Lake, Ontario.

US

By Nikolaj Gammeltoft

Oct. 17 (Bloomberg) — U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for a third straight day, as a jump in housing starts overshadowed disappointing results from International Business Machines Corp. and Intel Corp.

PulteGroup Inc. and D.R. Horton Inc. jumped more than 4.2 percent as homebuilders rallied. Dean Foods Co. soared 13 percent after its WhiteWave Foods Co. filed to go public. Intel fell 2.5 percent after forecasting a fourth-quarter gross margin that missed estimates. IBM slid 4.9 percent after reporting third-quarter revenue that trailed analysts’ projections.

The S&P 500 rose 0.4 percent to 1,460.91 at 4 p.m. in New York. The index has gained 2.3 percent this week. The Dow Jones Industrial Average added 5.22 points, or less than 0.1 percent, to 13,557 today. IBM, which accounts for more than 11 percent of the share-price-weighted Dow, took 80 points off the gauge today. About 6.3 billion shares traded hands on U.S. exchanges, 5.1 percent above the three-month average.

“The housing number was amazing,” Randall Warren, who oversees $75 million as chief investment officer of Warren Financial Service in Exton, Pennsylvania, said in a phone interview. “Corporate earnings have been strong in a slow growth environment, so if housing can help improve the economy then we could see a move up in stocks.”

U.S. equities rose as Commerce Department figures showed new-house construction jumped 15 percent to an 872,000 annual rate last month, the most since July 2008 and exceeding all forecasts in a Bloomberg survey of economists. The median estimate of 81 economists surveyed by Bloomberg called for 770,000.

An S&P gauge of 11 homebuilder stocks rose 3.2 percent.

PulteGroup, the largest U.S. homebuilder by revenue, jumped 5.3 percent to $17.44. D.R. Horton gained 4.2 percent to $21.54, while Lennar Corp. climbed 2.2 percent to $38.13.

The S&P 500 has rallied 16 percent this year and is about 7 percent below its all-time high of 1,565.15 reached in October 2007. More than 80 companies in the S&P 500 release results this week, according to data compiled by Bloomberg. Of the 71 companies in the equity benchmark that have reported since Oct. 9, 53 have posted earnings that exceeded analyst estimates, data compiled by Bloomberg show.

Moody’s Investors Service maintained its investment-grade credit rating on Spain late yesterday. The company cited a reduced risk of losing market access because of the European Central Bank’s willingness to buy the nation’s debt. Spain avoided joining Cyprus, Portugal, Ireland and Greece which are all rated below investment grade.

Technology shares had the largest decline among 10 groups in the S&P 500, tumbling 0.8 percent.

Intel, the world’s largest semiconductor maker, dropped 2.5 percent to $21.79. Profit is being crimped by expenses to slow factory output and combat rising inventories. Corporate customers are showing “caution” in placing orders and consumers in developed markets are curtailing PC purchases, Chief Financial Officer Stacy Smith said in a statement.

The Santa Clara, California-based company projected gross margin, the only profit measure it forecasts, of about 57 percent. That’s less than the 61.4 percent average estimate, according to data compiled by Bloomberg.

IBM dropped 4.9 percent to $200.63 after the world’s biggest computer-services provider reported revenue that dropped 5.4 percent to $24.7 billion. That missed the $25.4 billion median analyst estimate, according to data compiled by Bloomberg. IBM customers, hurt by anemic demand in home markets, put off software purchases and computer-maintenance contracts.

Dean Foods rose 13 percent to $16.96. Its WhiteWave Foods Co., the maker of Silk almond milk, filed to raise as much as $320 million in a U.S. initial public offering.

Cymer Inc. jumped 49 percent to $71.45 after ASML Holding NV agreed to buy the maker of lasers used to manufacture computer chips for $2.6 billion. Cymer investors will receive $20 in cash and 1.1502 of ASML’s ordinary shares for every Cymer share they hold, ASML said in a statement today. The price is 72 percent more than San Diego-based Cymer’s close in New York yesterday.

Apollo Group Inc. tumbled 22 percent to $21.40. The largest U.S. for-profit college chain forecast revenue for fiscal 2013 that missed analysts’ estimates and said it would close campuses and cut jobs.

CSX Corp. declined 2 percent to $21.19 after predicting two of its biggest markets, coal and agriculture shipments, would be depressed this quarter by the U.S. drought and competition from cheap natural gas.

The biggest eastern U.S. railroad expects unfavorable conditions for a third of its businesses, driving a “neutral outlook” for the three months through December, Chief Commercial Officer Clarence Gooden said. The carrier also predicted headwinds in food and consumer and emerging markets cargoes.

President Barack Obama and Republican challenger Mitt Romney met in a nationally televised debate last night. The showdown had gained added significance after a majority of voters said Obama lost to Romney in their first debate on Oct.3. Romney has since gained in national and state polls.

A USA Today/Gallup poll released this week gave Romney a 50 percent to 46 percent edge among likely voters in the 12 states that strategists in both parties say will decide who wins the White House on Nov. 6.

“The presidential race remains extremely close, according to polls following the latest debate,” Barclays Plc’s Laurent Fransolet and Paul Robinson wrote in a note to clients today.

“The induced uncertainty remains an issue for markets, though not as important as the eurozone developments, so far at least.”

 

Have a wonderful evening everyone.

Be magnificent!

 

If you do not think he is different, he is unique, he exists in his own right,

there cannot be any relationship.

Swami Prajnanpad, 1891-1974

As ever,

Carolann

 

Knowledge of what is possible is the beginning

of happiness.

-George Santayana, 1863-1952

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:

Naples protests Italian pizza snub

Birthplace of pizza does not receive “Best in Italy” award.

-by Nick Squires

ROME – It prides itself as the birthplace of the pizza and the global benchmark for Italy’s most famous culinary export.  So when Naples heard this week that the latest edition of Italy’s most respected restaurant guide had nominated a pizzeria in faraway, foggy Verona as the best in the country, there was outrage. Worse than that, not one of

Naples’ estimated 2,000 pizzerias had made it into the 2013 edition of Gambero Rosso, Italy’s ‘bible’ for foodies.  Indignant “pizzaioli”, as pizza makers are known, staged noisy demonstrations in some of Naples’ most famous pizzerias to rail against what they saw as an injustice and a humiliation.  For the guide to judge the pizzeria near Verona, in the northeast of Italy, as the finest in the country was a snub not just to pizza makers in Naples, but to the entire city, they said.  Francesco Borrelli, a Neapolitan politician, went further – it was, he said, no less than an example of “culinary racism”.  “This is the umpteenth example of hostility towards our city and our traditions. The fact that Gambero Rosso did not find a single Neapolitan pizzeria to include is shameful,” he said.  Neapolitan newspapers tried to salvage some pride by poking fun at Verona for its culinary peculiarities – among them a horse meat stew known as “pastissada” and a bone marrow dish called “peara” – and said the city of Romeo and Juliet should stick to making

polenta, not pizza.  Naples was the undisputed birthplace of the pizza, said Sergio Miccu, president of the association of pizza makers, even if it had now become a dish known around the world.

Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned. –Buddha

On this day in…

1793 – Marie Antoinette executed.

1853 – Crimean War.

1946 – Ten Nazi war criminals are hanged in Nuremberg, Germany.
1969 – The New York Mets win the World Series four games to one over the heavily-favored Baltimore Orioles.
1973 – Israeli General Ariel Sharon crosses the Suez Canal and begins to encircle two Egyptian armies.
1978 – The college of cardinals elects 58-year-old Karol Cardinal Wojtyla, a Pole, the first non-Italian Pope since 1523.
1984 – A baboon heart is transplanted into 15-day-old Baby Fae–the first transplant of the kind–at Loma Linda University Medical Center, California. Baby Fae lives until November 15.
1995 – The Million Man March for ‘A Day of Atonement’ takes place in Washington, D.C.

The hardest battle you’re ever going to fight is the battle to be just you. –Leo Buscaglia

photos of the day October 16, 2012

A Cambodian student holds lotus flowers while praying in front of the main gate of the Royal Palace in Phnom Penh, Cambodia, to mourn the death of former King Norodom Sihanouk.

Heng Sinith/AP

‘Verity’, a statue by British artist Damien Hirst is positioned on her plinth on the harbor wall at Ilfracombe in north Devon, South West England. The bronze artwork depicting a naked pregnant woman holding a sword, has been loaned to the Devon seaside town for twenty years by the artist who lives locally.

Toby Melville/Reuters

Market Closes for October 16th, 2012:

Market  Index	Close	Change
Dow  Jones	13551.78	+127.55
		+0.95%
S&P 500	1454.92	+14.79
		+1.03%
NASDAQ	3101.174	+36.991
		+1.21%
TSX	12407.70	+177.74
		+1.45%

International Markets

Market  Index	Close	Change
NIKKEI	8701.31	+123.38
		+1.44%
HANG  SENG	21207.07	+58.82
		+0.28%
SENSEX	18577.70	-135.85
		-0.73%
FTSE 100	5870.54	+64.93
		+1.12%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.825	1.798
CND.   30 Year Bond	2.442	2.410
U.S.   10 Year Bond	1.7186	1.6630
U.S.   30 Year Bond	2.9153	2.8451

Currencies

BOC Close	Today	Previous
Canadian $	0.98668	0.98137
US   $	1.01350	1.01899
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29106	0.77456
US  $	1.30850	0.76423

Commodities

Gold	Close	Previous
London Gold   Fix	1748.90	1738.15
Oil	Close	Previous
WTI Crude Future	92.09	91.85
BRENT	116.27	116.85

Market Commentary:

Canada

By Eric Lam and Rita Nazareth

Oct. 16 (Bloomberg) — The Standard & Poor’s/TSX Composite Index capped its biggest gain since August as U.S. industrial production beat forecasts and two German lawmakers said the country is open to Spain seeking a precautionary credit line.

Thompson Creek Metals Co., a producer of molybdenum in Canada and the U.S, and Iamgold Corp., a producer of the precious metal, added at least 3.4 percent. Regal Lifestyle Communities Inc. slid 0.3 percent in its trading debut after a C$138.8 million ($140.8 million) initial public offering.

The S&P/TSX rose 177.74 points, or 1.5 percent, to 12,407.70 at 4 p.m. in Toronto. It has rallied 10 percent from this year’s low on May 18, and is up 3.8 percent in 2012.

“There’s an effort to have them working together to solve the European crisis,” Bill Harris, who manages C$279 million ($282.8 million) at Avenue Investment Management in Toronto, said in a telephone interview today. “Any good news that comes out at the moment will get stocks to bounce back.”

Equities rose as Michael Meister and Norbert Barthle, officials within Chancellor Angela Merkel’s Christian Democratic bloc, indicated a reversal to German resistance to a full bailout for Spain. A report showed U.S. industrial production increased a more-than-forecast 0.4 percent in September, partially reversing the prior month’s slump and indicating manufacturers are regaining their footing.

Canadian factory sales rose three times faster than economists forecast in August on gains in energy and automobiles. The Canadian dollar weakened the most in almost three months against its U.S. peer after Bank of Canada Governor Mark Carney suggested he may reduce his economic outlook and delay raising policy interest rates.

All 10 groups in the S&P/TSX rose as health-care and raw- material companies had the biggest gains. Thompson Creek Metals added 6.5 percent to C$2.78. Iamgold increased 3.5 percent to C$15.78.

Argonaut Gold Inc. added 2.2 percent to C$9.86 after being raised to outperform from neutral at Macquarie Group Ltd. by equity analyst Michael Siperco. The 12-month share-price estimate is C$12.

Loblaw Cos. gained 2.5 percent to C$34.72. Canada’s largest grocery chain by market capitalization will cut 700 jobs and take a C$60 million charge as it seeks to reduce costs after projecting annual profit would fall below last year.

Regal Lifestyle fell 0.3 to C$9.97. The company, which plans to buy 10 retirement communities in Canada, sold about 13.9 million shares on Oct. 4 in a sale led by Canadian Imperial Bank of Commerce and Bank of Montreal.

The banks have the option to sell an additional 15 percent of the company, which would increase proceeds to about C$159.6 million, the Toronto-based company said in an Oct. 5 statement.

Ivanplats Ltd., a mining company founded by billionaire Robert Friedland, raised C$300.8 million in its IPO in Toronto after selling shares at the lower end of the marketed range.

Ivanplats sold 63.3 million shares for C$4.75 apiece yesterday, within its offered range of C$4.50 to C$5.40 each, according to sales documents. The stock will trade in Toronto under the ticker IVP.

Ivanplats is the largest Canadian mining IPO since Tahoe Resources Inc. raised C$348 million in its 2010 share sale. The company plans to use proceeds from the sale for exploration and development projects in Africa and to complete the purchase of the Kipushi copper-and-zinc mine in the Democratic Republic of Congo from companies associated with Dan Gertler, an Israeli mining investor, according to a Sept. 28 prospectus.

Gildan Activewear Inc.’s drive to take market share from Berkshire Hathaway Inc.’s Fruit of the Loom and Hanesbrands Inc. has made it the best performing North American underwear stock this year.

Gildan, the biggest supplier of blank tops to makers of printed clothing such as T-shirts, soared almost 70 percent this year through yesterday, the most among 23 North American apparel, footwear and accessories makers with market values of more than $1 billion, according to data compiled by Bloomberg.

The shares are trading at 36 times earnings as investors back the company’s move into the retail market for socks, underwear and undershirts.

“Why this year will be a major breakthrough for us is we’ve taken our low-cost manufacturing and enhanced it with quality features at the same time as giving the retailers better margins than Fruit or Hanes,” Glenn Chamandy, chief executive officer, said last week by phone from Montreal, where the company is based. “That’s how you win shelf space.”

US

By Nikolaj Gammeltoft

Oct. 16 (Bloomberg) — U.S. stocks rallied, giving the Standard & Poor’s 500 Index its biggest gain in a month, as industrial production rose more than forecast and corporate earnings topped estimates.

Citigroup Inc. added 1.6 percent after Chief Executive Officer Vikram Pandit stepped down. Johnson & Johnson climbed 1.4 percent after raising its 2012 forecast. Murphy Oil Corp. rallied 8 percent after saying it plans to spin off its U.S. refined fuels business. International Business Machines Corp. and Intel Corp. tumbled more than 2.4 percent after the market closed as the companies reported third-quarter results.

The S&P 500 climbed 1 percent to 1,454.92 at 4 p.m. in New York. The index advanced 1.8 percent over two days. The Dow Jones Industrial Average added 127.55 points, or 1 percent, to 13,551.78 today. About 6.2 billion shares traded hands on U.S. exchanges, 2.7 percent above the three-month average.

“Investors are cycling back into risk as earnings as well as economic numbers in the U.S. are somewhat better than expected,” Chad Morganlander, a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co., which oversees about $138 billion in client assets, said in a telephone interview.

“Economic growth will continue to be sluggish even with the flickers of hope that we’ve seen this morning.”

The S&P 500 has rallied 16 percent this year and is about 7 percent below its all-time high of 1,565.15 reached in October 2007. More than 80 companies in the S&P 500 have scheduled their results this week, according to data compiled by Bloomberg. Of the 50 companies in the benchmark index that have reported since Oct. 9, 37 posted earnings that exceeded analyst estimates, the data showed.

Output at factories, mines and utilities rose 0.4 percent in September after a 1.4 percent decline in August that was the biggest since March 2009, the Federal Reserve reported today in Washington. The median estimate in a Bloomberg survey of 85 economists called for production to rise 0.2 percent.

Manufacturing, which makes up 75 percent of the total, climbed 0.2 percent.

American equities followed European stocks higher as two German lawmakers said the country is open to Spain seeking a precautionary credit line. Michael Meister and Norbert Barthle, officials within Chancellor Angela Merkel’s Christian Democratic bloc, indicated a rolling back of German resistance to a full sovereign bailout for Spain.

“We have more good news than bad and no reason to take the market down in the short term,” James Gaul, a portfolio manager at Boston Advisors LLC which oversees about $2.3 billion in assets, said in a phone interview. “The comments by German lawmakers that Germany may be open to a precautionary credit line to Spain may take some risk off the table there.”

Nine out of 10 groups in the benchmark index rose, with commodity producers and technology shares rallying at least 1.5 percent. The Morgan Stanley Cyclical Index jumped 1.8 percent, the most since Sept. 6, as investors bought shares of companies most tied to economic growth. Financial shares added 0.7 percent as a group.

Citigroup advanced 1.6 percent to $37.25, with trading more than 187 percent above the five-day average. Directors ousted Pandit after concluding that he had mismanaged operations, leading to setbacks with regulators and a loss of credibility with investors, a person with knowledge of the discussions said.

Pandit said he decided yesterday to leave after turning the company around. He will be replaced as CEO by Michael Corbat.

President and Chief Operating Officer John P. Havens also resigned, the bank said in a statement.

The departures remove a leadership team that navigated Citigroup through 2008’s global credit crisis, when taxpayers rescued the bank from collapse with a $45 billion bailout.

Citigroup soared 5.5 percent yesterday, the most since March, after earnings topped estimates.

“We think this could be an intermediate term positive,” Matt Burnell, bank analyst at Wells Fargo & Co., wrote in a note today. He recommends investors buy Citigroup shares. “Corbat’s elevation strikes us as a positive for Citi, as it brings an experienced banker into the CEO’s role.”

State Street Corp. increased 4.7 percent to $43.53. The third-largest custody bank reported third-quarter operating profit that beat analysts’ estimates as it earned higher fees for managing client money.

Goldman Sachs Group Inc. slumped 1 percent to $123.22. The fifth-biggest U.S. bank by assets reported profit that beat analysts’ estimates on higher underwriting fees and a jump in the value of the firm’s own investments. Revenue from trading fixed-income, currency and commodities fell short of gains posted by JPMorgan Chase & Co. and Citigroup.

PNC Financial Services Group Inc. fell 4 percent, the most in the S&P 500, to $60.40. The seventh-largest U.S. bank by deposits reported quarterly profit that missed analyst estimates. Excluding the effects of securities transactions and integration costs, profit was $1.63 a share. The average estimate of 32 analysts surveyed by Bloomberg was $1.66.

Johnson & Johnson, the world’s biggest maker of health-care products, climbed 1.4 percent to $69.55. Third-quarter earnings beat analyst estimates on rising demand for medical tools acquired with the Synthes purchase and new prescription medicines. The drugmaker raised its 2012 earnings forecast to $5.05 to $5.10 a share excluding certain items, after trimming the forecast last quarter by 5 cents to $5 to $5.07 a share.

Apple Inc. jumped 2.4 percent to $649.79. The world’s most valuable company sent out invitations for what it’s calling a “special event” on Oct. 23 in San Jose, California. Apple plans to unveil a smaller version of its iPad tablet at the event, a person with knowledge of the matter said earlier this month.

IBM slid 3.3 percent to $203.99 at 5:18 p.m. New York time.

The biggest computer-services company reported third-quarter revenue after the close of regular trading that  fell short of estimates as currency fluctuations and slow hardware sales crimped results.

Intel soared 2.9 percent to $22.35 in regular trading.

After the market closed, the shares erased 2.4 percent as the world’s largest semiconductor maker said sales in the current period will be $13.1 billion to $14.1 billion. Analysts on average had projected sales of $13.7 billion, according to data compiled by Bloomberg.

The company’s forecast suggests year-end demand won’t match the most pessimistic expectations. Still, it doesn’t mean computer makers will soon return to the growth pace of the years preceding the advent of tablets and smartphones. A shift away from traditional computers has put the market on course for its first decline in more than a decade.

Mattel Inc. rose 5 percent, the most since July, to $37.20. The world’s largest toymaker reported third-quarter profit and revenue that topped analysts’ estimates.

Murphy Oil rallied 8 percent to $63.74. The El Dorado, Arkansas-based company plans to spin off its U.S. refined fuels business, including a network of gasoline stations at Wal-Mart Stores Inc. locations, after hedge fund Third Point LLC said the company should shed assets.

Kroger Co., a supermarket operator, increased 4.3 percent to $24.43. Jefferies Group Inc. upgraded the stock to buy from hold.

Fossil Inc. gained 7.3 percent to $91.31 for the third- biggest advance in the S&P 500. The maker of jewelry and leather goods was upgraded to buy at Citigroup, which cited the company’s inexpensive valuation as well as the earnings impact from new brands and products.

Coca-Cola Co. slumped 0.6 percent to $37.90. The world’s largest soft-drink maker said third-quarter revenue advanced less than 1 percent to $12.3 billion, trailing the $12.4 billion average of analysts’ estimates compiled by Bloomberg.

Clearwire Corp. tumbled 17 percent to $2.23. People with direct knowledge of the situation said Sprint Nextel Corp. has no immediate plans to take over Clearwire. Sprint, which agreed to sell a 70 percent stake to Softbank Corp. for $20.1 billion, was unchanged at $5.69.

 

Have a wonderful evening everyone.

Be magnificent!

 

Expansion is life; contraction is death.

Love is life, hatred is death.

We began to die the day we began to contract, to hate others

and nothing can prevent our death,

until we come back to life, to expansion

Swami Vivekananda, 1863-1902

As ever,

Carolann

 

Imagination is a poor substitute

for experience.

-Havelock Ellis, 1859-1939

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