Month: November 2012

Dear Friends,

 

Tangents:

On this day in 2011, the Occupy Wall Street movement in Zuccotti Park was raided by NYPD officers, prompting hundreds of protesters to flee their longtime encampment in lower Manhattan. –Steven Russolillo, WSJ, 11/15/12.

 

And also on this day in…

1867 – The first stock ticker debuts.

1882 – Felix Frankfurter, jurist, was born.

1887 – Georgia O’Keefe was born

1942 – An American fleet defeats a Japanese naval force in a clash off Guadalcanal.

1943 – Himmler orders Gypsies to concentration camps – up to 500,000 killed.

1963 – Argentina voids all foreign oil contracts.

1969 – A quarter of a million anti-Vietnam War demonstrators march in Washington, D.C.

 
To some lawyers all facts are created equal.  – Felix Frankfurter.

 

photos of the day

November 15, 2012

US artist Nathan Sawaya poses beside his creation “Blue Guy Sitting” before the media preview of his ‘The Art of the Brick’ exhibition at the ArtScience Museum in Singapore.

Edgar Su/Reuters

A man walks along a tree-lined street on a cold and hazy morning in Berlin.

Thomas Peter/Reuters

 

Market Closes for November 15th, 2012:

 

Market  Index	Close	Change
Dow  Jones	12542.38	-28.57    -0.23%
S&P 500	1353.33	-2.16    -0.16%
NASDAQ	2836.936	-9.872    -0.35%
TSX	11811.38	-118.41
		-0.99%

International Markets

Market  Index	Close	Change
NIKKEI	8829.72	+164.99
		+1.90%
HANG  SENG	21108.93	-333.06
		-1.55%
SENSEX	18471.37	-147.50
		-0.79%
FTSE 100	5677.75	-44.26
		-0.77%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.724	1.702
CND.   30 Year Bond	2.310	2.300
U.S.   10 Year Bond	1.5928	1.5911
U.S.   30 Year Bond	2.7308	2.7270

Currencies

BOC Close	Today	Previous
Canadian $	1.00104	1.00358
US   $	0.99896	0.99644
Euro Rate  1 Euro=		Inverse
Canadian   $	1.27930	0.78168
US  $	1.27798	0.78249

Commodities

Gold	Close	Previous
London Gold   Fix	1716.45	1727.10
Oil	Close	Previous
WTI Crude Future	85.45	86.32
BRENT	109.11	110.25

Market Commentary:

Canada

By Eric Lam

Nov. 15 (Bloomberg) — Canadian stocks fell for a fourth day after a report showed world gold demand dropped the most since 2009 and U.S. jobless data disappointed investors.

Bombardier Inc., which had its credit rating cut by Standard & Poor’s yesterday, fell 6.3 percent after postponing its $1 billion debt offering. Poseidon Concepts Corp., a seller of tanks to the oil and gas industry, plunged 62 percent after it posted worse-than-estimated earnings. Alacer Gold Corp. and Nevsun Resources Ltd. fell at least 5.4 percent as gold slipped to a one-week low. Birchcliff Energy Ltd. rose 7.7 percent after reporting record production in the third quarter.

The Standard & Poor’s/TSX Composite Index fell 118.41 points, or 1 percent, to 11,811.38 in Toronto. The benchmark Canadian equity gauge is down 1.2 percent this year. Trading volume was 50 percent higher than the 30-day average.

“Gold and precious metals shares are down due to demand slowing and also a drop in risk appetite,” said Bob Decker, a money manager at Aurion Capital in Toronto. His firm oversees about C$5.5 billion ($5.5 billion). “The unlikely scenario of a quick fix for the fiscal cliff is dawning on investors. The complacency that prevailed before the election has now evaporated, so it’s an abrupt change in sentiment we have here.”

Gold demand dropped 11 percent in the third quarter, the most since 2009, from a record a year earlier as slowing growth in China cut investment and jewelry purchases, the World Gold Council said in a report. Global demand slipped to 1,084.6 metric tons in the quarter compared with 1,223.5 tons a year earlier.

Gold mining companies contributed most to losses in the S&P/TSX as eight of 10 industries retreated. The metal for December delivery fell 0.9 percent to settle at $1,713.80 an ounce in New York, the biggest percentage loss since Nov. 2.

U.S. initial jobless claims surged by 78,000 to 439,000 last week, the most since April 2011, as superstorm Sandy wreaked havoc on the job market.

The U.S., Canada’s largest trading partner, faces a so- called fiscal cliff of $607 billion in automatic tax increases and spending cuts in 2013 if policy makers do not come to a compromise before then. The Congressional Budget Office estimates the U.S. economy will go into recession in the first half of the year if a solution is not found.

Poseidon Concepts tumbled 62 percent to C$5 after at least six firms lowered their recommendations on the stock. The company reported adjusted earnings of 10 Canadian cents a share, compared with the average analyst forecast of 48 cents, according to a Bloomberg survey.

Michael Mazar, analyst with BMO Capital Markets, cut the stock to underperform from outperform and said the company may cut its dividend. Poseidon has reduced its spending forecast and added only 40 tanks in the quarter, well behind the estimated 60 to 84, he wrote in a note to clients.

“The lowered capex and slow ramp up in tank additions are particularly troubling,” he said. “A reduction in the dividend is likely over the next several quarters.”

Alacer Gold decreased 5.4 percent to C$4.75 and Nevsun Resources lost 6.7 percent to C$4.05. Fortuna Silver Mines Inc. fell 7.4 percent to C$4.54 as the S&P/TSX Materials index fell 2.2 percent.

Nexen Inc., the Calgary-based oil and gas producer that China’s Cnooc Ltd. has offered to acquire, rose 2.9 percent to C$25.26. Paulson & Co., the hedge fund run by billionaire John Paulson, bought a $153 million stake in Nexen during the third quarter, according to U.S. filings.

Birchcliff Energy jumped 7.7 percent to C$7.94 after reporting record current production of 27,500 barrels of oil equivalent a day, compared with a forecast of 26,000.

Bombardier fell 6.3 percent to C$2.99 after delaying a bond offering due to market conditions, according to Isabelle Rondeau, a spokeswoman with the company. In an interview with Bloomberg, Rondeau declined to say when the commercial aircraft maker planned to issue the debt.

US

By Nikolaj Gammeltoft and Susanne Walker

Nov. 15 (Bloomberg) — U.S. stocks slipped, keeping benchmark indexes at the lowest levels in more than three months, while Treasuries rose for a sixth day as lawmakers prepared for budget talks and conflict escalated in Israel.

The Standard & Poor’s 500 Index lost 0.2 percent to 1,353.32 at 4 p.m. in New York, led by consumer-staples retailers after Wal-Mart Stores Inc.’s results disappointed investors. Ten-year Treasury yields decreased less than one basis point to 1.58 percent and have fallen 16 basis points since Nov. 6. The yen weakened on speculation of more aggressive monetary stimulus. New York-traded crude oil slid after inventories rose to a three-month high.

The S&P 500 is down 5.3 percent since Nov. 6, the worst seven-day drop in a year, and Treasuries have rallied as the elections set up a budget showdown between President Barack Obama and the Republicans who control the House, pushing the nation closer to a so-called fiscal cliff of $607 billion in automatic spending cuts and tax increases. Reports today showed jobless claims rose more than forecast after superstorm Sandy hit the East Coast and Philadelphia-area manufacturing shrank.

“You are firmly tucked into the environment where all things revolve around the fiscal cliff,” said Tom Porcelli, chief U.S. economist at Royal Bank of Canada’s RBC Capital Markets unit. “We all knew that over the next few weeks claims would be greatly impacted by Sandy.”

The 14-day relative-strength index for the S&P 500, a gauge of market momentum, slid to 27.7 yesterday, ending the day below 30 for the first time since June. After June’s two-day dip in the RSI below 30, which some technical analysts say indicates a co-called oversold situation, the S&P 500 rallied 15 percent over the next three months before reaching its peak for the year on Sept. 14.

Wal-Mart Stores sank 3.6 percent as the retailer’s third- quarter revenue and fourth-quarter profit forecast trailed analysts’ estimates in anticipation of a competitive holiday season and after economic conditions slowed U.S. sales gains.

Verizon Communications Inc., AT&T Inc. and Alcoa Inc. also also dropped at least 1 percent to help lead declines in the Dow Jones Industrial Average.

Viacom Inc. increased 2.6 percent after the media company’s earnings topped analyst estimates. NetApp Inc. jumped 11 percent as profit for the second quarter beat forecasts.

Earnings have exceeded analyst estimates at 72 percent of the companies that reported so far, while 59 percent missed sales forecasts, according to data compiled by Bloomberg.

Labor Department data this morning showed unemployment claims surged by 78,000 to 439,000 last week, the most since April 2011. Reports from Federal Reserve banks showed manufacturing unexpectedly contracted in the Philadelphia area while shrinking less than forecast in the New York region. The cost of living rose in October by 0.1 percent, the slowest pace in three months and a sign U.S. inflation is in check.

About 90 percent of the drop in the S&P 500 since Election Day “can be attributed to concerns about the U.S. fiscal cliff,” Marko Kolanovic, global head of derivatives and quantitative strategy at JPMorgan Chase & Co. in New York, wrote in a report today. More swings may be caused today because derivatives tied to the equity market expire tomorrow.

Concerns about Washington gridlock overlap with tomorrow’s expiration for options contracts tied to underlying stocks, which “could cause high intraday volatility” as investors and traders buy and sell both derivatives and shares to adjust their positions, Kolanovic said in his analysis. The S&P 500 rose as much as 0.4 percent and declined 0.6 percent during the session.

Rates on 30-year U.S. bonds decreased less than one basis point to 2.72 percent, while two-year yields were down less than one point at 0.24 percent. Ten-year yields traded in the narrowest range in six weeks.

The Stoxx Europe 600 Index fell 1 percent to the lowest level in two months as travel companies and retailers led losses. SBM Offshore NV, GAM Holding AG, and Man Group Plc dropped more than 5 percent as MSCI Inc. removed the shares from some of its indexes, meaning funds that track the measures will sell the stocks. SBM, the world’s biggest supplier of floating oil and gas platforms, also said it won’t meet its 2012 revenue forecasts.

An MSCI gauge of emerging-market stocks slid 0.7 percent, dropping for a sixth day and headed for the longest losing streak in four months. South Korea’s KOSPI slumped 1.2 percent, reaching its weakest level in more than three months. The BSE India Sensex 30 Index dropped 0.8 percent, extending declines to a fifth day, as the government failed to meet a fund-raising target in a sale of mobile-phone airwaves.

South Africa’s FTSE/JSE Africa All Share Index retreated for a third day as platinum shares weighed on the market after the metal led declines among precious metals traded in London.

Brent crude, the benchmark for European oil, for December delivery rose 1.3 percent to $110.98 reached a premium of $26 to New York futures, the widest since October 2011. Brent rallied as Israel and Palestinian militants exchanged rocket fire and air strikes and Prime Minister Benjamin Netanyahu said his military is ready for a “substantial expansion” to halt attacks from the Gaza Strip.

The worst violence in four years between Israel and Gaza militants began yesterday when Ahmed al-Jabari, the leader of Hamas’s military wing, was killed in a missile strike. Israeli air attacks have subsequently targeted more than 230 rocket storage or launching sites in Gaza, the army said.

West Texas Intermediate oil traded in New York lost 1 percent to $84.45 a barrel after surging 1.1 percent yesterday.

The U.S. government reported inventories increased less than forecast, gaining 1.09 million barrels last week to 375.9 million, the highest level since July. Stockpiles were forecast to gain 2.65 million barrels, according to the median of 10 analyst estimates in a Bloomberg survey.

Natural gas, West Texas oil, sugar, soybeans, nickel and natural gas led declines in 15 of 24 commodities in the S&P GSCI Index, sending the gauge down 0.6 percent.

The 17-nation euro strengthened 0.3 percent to $1.2770 even as a report showed gross domestic product in the currency region fell 0.1 percent in the third quarter. Australia’s dollar dropped versus 15 of 16 major peers after the Reserve Bank said it boosted sales of the currency.

The yen slumped to its weakest level in six months versus the dollar on speculation Japan’s opposition will win elections next month and advocate unlimited stimulus. The yen depreciated at least 0.7 percent against all 16 of its major peers. Japan’s Nikkei 225 Stock Average gained 1.9 percent even as most Asian equity indexes declined.

Shinzo Abe, who polls show will become Japan’s premier after the election, called on the central bank to intensify measures to counter deflation and the strength of the currency.

“A government led by the Liberal Democratic Party is expected to win,” said Mitsushige Akino, who oversees about $600 million at Ichiyoshi Investment Management Co. in Tokyo.

“Investors believe that will add pressure on the Bank of Japan to ease policy, and the government will adopt strong policies to get the economy out of deflation.”

Polls showed the Dec. 16 vote will favor Abe, who said today the central bank’s benchmark rate should be cut to zero or below and pledged to raise public spending.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Love can come into being only when there is total self-abandonment.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

Work saves us from three great evils:

boredom, vice, and need.

-Voltaire, 1694-1778

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:

Britain’s media are in a meltdown and its government is gaffe-prone, so Oxford Dictionaries has chosen an apt Word of the Year: “omnishambles.” Oxford University Press on Tuesday crowned the word – defined as “a situation that has been comprehensively mismanaged, characterized by a string of blunders and miscalculations” – its top term of 2012. Each year Oxford University Press tracks how the English language is  changing and chooses a word that best reflects the mood of the year. The publisher typically chooses separate British and American winners. This year’s American champion is “gif,” short for graphics interchange format, a common format for images on the Internet.                                                                    -CSM, 11/14/12

On this day in 1972, the Dow Jones Industrial Average closed above 1,000 for the first time ever. It finished that day at 1,003.16. -Steven Russolillo, WSJ, 11/14/12

And also on this day in…

1666 – First blood transfusion.

1792 – Capt George Vancouver is 1st Englishman to enter SF Bay.

1832 – 1st streetcar (horse-drawn) (John Mason) debuts in NYC; fare 12 cents rode on 4th Avenue between Prince and 14th Sts.

1833 – Charles Darwin departs by horse to Montevideo.

1834 – William Thomson enters Glasgow University at 10 yrs 4 months.

1840 – Claude Monet was born.

1851 – “Moby Dick,” by Herman Melville, published.

1948 – Prince Charles, Prince of Wales, was born.

 

photos of the day

November 14, 2012

A total solar eclipse observed in Green Island, Queensland state, Australia. Starting just after dawn, the eclipse cast its 150-kilometer (95-mile) shadow in Australia’s Northern Territory, crossed the northeast tip of the country and was swooping east across the South Pacific, where no islands are in its direct path.

AP

A four-day old newborn silverback gorilla holds to his mother gorilla in the Ramat Gan safari, near Tel Aviv, Israel.

Ariel Schalit/AP

 

Market Closes for November 14th, 2012:

 

Market  Index	Close	Change
Dow  Jones	12570.95	-185.23    -1.45%
S&P 500	1355.49	-19.04    -1.39%
NASDAQ	2846.808	-37.081    -1.29%
TSX	11929.79	-204.87
		-1.69%

International Markets

Market  Index	Close	Change
NIKKEI	8664.73	+3.68
		+0.04%
HANG  SENG	21441.99	+253.34
		+1.20%
SENSEX	18618.87	-51.47
		-0.28%
FTSE 100	5722.01	-64.24
		-1.11%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.702	1.691
CND.   30 Year Bond	2.300	2.286
U.S.   10 Year Bond	1.5911	1.5911
U.S.   30 Year Bond	2.7270	2.7240

Currencies

BOC Close	Today	Previous
Canadian $	1.00358	1.00220
US   $	0.99644	0.99780
Euro Rate  1 Euro=		Inverse
Canadian   $	1.27818	0.78236
US  $	1.27362	0.78516

Commodities

Gold	Close	Previous
London Gold   Fix	1727.10	1724.70
Oil	Close	Previous
WTI Crude Future	86.32	85.38
BRENT	110.25	109.01

Market Commentary:

Canada

By Eric Lam

Nov. 14 (Bloomberg) — Canadian stocks slid, erasing the 2012 gain for the Standard & Poor’s/TSX Composite Index, after an Israeli air strike killed a Hamas leader and concern grew about the so-called U.S. fiscal cliff.

Iamgold Corp. plunged 19 percent, its biggest loss ever, after lowering its 2013 output forecast. Barrick Gold Corp., the world’s largest producer of the metal, retreated 3.8 percent and Goldcorp Inc. slipped 3.8 percent. Bombardier Inc. fell 3.3 percent as the company’s credit rating was cut by S&P, which cited lower-than-expected cash generation this year.

The S&P/TSX fell 204.87 points, or 1.7 percent, to 11,929.79 in Toronto, the biggest decline since June 21. The benchmark Canadian equity gauge is down 0.2 percent in 2012, closing at a loss for the first time since September.

“The fiscal cliff is getting closer to reality; there has to be some signal of a getting together of minds and we’re not seeing that,” said Ian Nakamoto, director of research with MacDougall MacDougall and MacTier Inc. in Toronto. His firm manages about $4 billion. “The bombing in the Middle East is very bad because the last thing the economy needs now is higher oil prices. It’s already relatively weak and we can’t afford a spike in any raw material.”

The United States, Canada’s largest trading partner, faces $607 billion in automatic tax increases and spending cuts beginning in 2013 that will likely send the world’s largest economy into a recession unless policy makers on Capitol Hill come to a compromise before year-end.

Israeli jets struck the Gaza Strip today, killing Ahmed al- Jabari, leader of Hamas’s military wing, as the army pledged the use of ground troops if required to end attacks on its citizens.

Crude for December delivery rose 1.1 percent to settle at $86.32 a barrel in New York on concerns unrest in the Middle East will intensify and disrupt supplies.

While Canadian stocks generally move higher with rising commodity prices, “if there’s enough fear people will sell,” Nakamoto said.

Raw materials companies contributed the most to losses in the S&P/TSX as nine of 10 industries retreated. Trading volume was 27 percent higher than the 30-day average.

“Iamgold is also dragging down quite a few gold companies,” said John Tsagarelis, managing director and fund manager with Manulife Asset Management, which oversees about $218 billion from Toronto. “Gold prices have not appreciated that much this year, but costs continue to go up.”

Iamgold plunged 19 percent to C$11.98, the most since it began trading in 1996, after the gold producer reported adjusted earnings of 16 cents a share, short of analysts’ average estimate for 24 cents.

Production will be lower than expected next year because of “poor” performance at the Sadiola mine in Mali, which Iamgold owns with AngloGold Ashanti Ltd., and a slower ramp-up in production at the company’s Westwood project in Quebec, which is expected to begin output in the first quarter, Iamgold said.

The company was downgraded to sell from buy by Pawel Rajszel, an analyst with Veritas Investment Research, and to neutral from outperform by Tony Lesiak of Macquarie Research.

Barrick fell 3.8 percent to C$33.99 and Goldcorp slipped 3.8 percent to C$41.28.

Investors also sold silver producers, as First Majestic Silver Corp. slumped 7.9 percent to C$21.70, Fortuna Silver Mines Inc. fell 7.2 percent to C$4.90 and Silver Wheaton Corp. lost 6.4 percent to C$36.69.

Just Energy Group Inc., which sells natural gas and electricity, slumped 9.3 percent to C$8.88. The stock was downgraded to underperform from sector perform by equity analyst Trevor Johnson at National Bank Financial.

Chorus Aviation Inc. jumped 12 percent to C$3.39 after reporting third-quarter adjusted earnings of 30 Canadian cents a share, ahead of analysts’ estimates of 15 cents.

Loblaw Cos. Ltd. rose 0.9 percent to C$33.64 after the grocer raised its dividend for the first time since February 2005, to 22 Canadian cents a share from 21 cents. Loblaw also reported third-quarter revenue of C$9.83 billion, above estimates of C$9.81 billion.

Rona Inc. gained 4.9 percent to C$11.52. Invesco Canada Ltd., the company’s second-largest investor, said it wants to replace the board at the home-improvement retailer. Invesco said it plans to request a meeting of shareholders to elect new directors.

US

By Nikolaj Gammeltoft

Nov. 14 (Bloomberg) — U.S. stocks fell, sending the Dow Jones Industrial Average to the lowest level since June, as concern about the budget debate in Washington and an Israeli air strike erased an early rally led by technology shares.

Federal Express Corp. and Boeing Co. slumped at least 2.8 percent to pace declines among the largest companies. Bank of America Corp. and JPMorgan Chase & Co. dropped more than 1.8 percent as financial shares sank. Cisco Systems Inc., the world’s biggest maker of computer-networking equipment, jumped 4.8 percent after earnings topped estimates. Facebook Inc. soared 13 percent as investors were undeterred by a surge in the number of tradeable shares after a lockup period expired.

The Standard & Poor’s 500 Index fell 1.4 percent to 1,355.49 at 4 p.m. in New York. The Dow lost 185.23 points, or 1.5 percent, to 12,570.95, the lowest level since June 26. The Nasdaq Composite Index slid 1.3 percent to 2,846.81, dropping more than 10 percent from its almost 12-year closing high in September, in what is known as a correction.

“The recent wall of worry continues to mount,” Ryan Larson, the Chicago-based head of U.S. equity trading at RBC Global Asset Management (U.S.) Inc., said in an interview. His firm oversees $250 billion. “Middle East geo-political tensions, continued sovereign concerns about Greece and Spain, indecision ahead of the fast-approaching fiscal cliff and the fact that the major U.S. indices continue to trade under key technical levels are all weighing on sentiment.”

The S&P 500 has fallen 5.1 percent since President Barack Obama’s re-election set up a budget showdown with the Republican-controlled House of Representatives. The benchmark gauge is trading below its average price for the past 200 days, and is down 7.5 percent from an almost five-year high on Sept. 14. Volume for exchange-listed stocks in the U.S. was 7.51 billion shares today, 24 percent above the three-month daily average.

Obama is negotiating to reach a deficit-reduction deal with Congress to avert $607 billion in automatic tax increases and spending cuts, or the so-called fiscal cliff. He said in a White House news conference that voters sent a “very clear message” on Nov. 6 that they want both parties to stop bickering over politics and take the necessary steps to cut the budget deficit through a combination of tax increases for the wealthy and cuts in spending.

The president’s remarks spurred concern lawmakers were not making progress in reaching an agreement to avert the fiscal cliff. Obama will sit down with Democratic and Republican congressional leaders Nov. 16 for an opening round of negotiations.

Stocks extended losses after Israel carried out a series of air strikes in the Gaza Strip today, killing the leader of Hamas’s militant wing, and said it was ready to use ground troops if needed to end attacks on its citizens. In Europe, industrial production dropped the most in more than three years in September, led by double-digit declines in Portugal and Ireland.

Retail sales in the U.S. fell in October for the first time in four months, influenced by the effects of superstorm Sandy, which hurt receipts for some and helped for others. Wholesale prices unexpectedly declined for the first time in five months as energy and vehicle costs dropped.

A number of Federal Reserve officials said the central bank may need to expand its monthly purchases of bonds next year after the expiration of Operation Twist, according to minutes of their last meeting released today.

Under Operation Twist, scheduled to end in December, the Fed is swapping short-term Treasuries on its balance sheet for longer-term debt. The Fed in addition is buying $40 billion in mortgage-backed securities in a third round of so-called quantitative easing.

All 10 groups in the S&P 500 slid today, with raw-material, financial and industrial shares dropping at least 1.7 percent.

FedEx tumbled 3.7 percent to $87.12. Boeing erased 2.8 percent to $71.29. Bank of America slumped 3.6 percent to $8.99, for the biggest drop in the Dow, while JPMorgan declined 1.9 percent to $39.29.

Home Depot Inc. fell 3 percent to $61.47. The largest U.S. home-improvement retailer retreated after reaching the highest level since 2000 yesterday as profits beat estimates. The stock was downgraded to the equivalent of hold by analysts at Gabelli & Co. and Raymond James & Associates Inc.

Advanced Micro Devices Inc. fell 7.7 percent to $1.93, after a 5 percent rally yesterday. The second-largest maker of personal-computer processors said it isn’t actively pursuing a sale of the company or a significant sale of assets. The statement came after Reuters reported yesterday that AMD hired JPMorgan to explore options, including a potential sale of the company or its patent portfolio.

Mosaic Co. fell 3.3 percent to $49.10. The largest U.S. fertilizer producer may further reduce its output of potash amid lower-than-expected global demand for the crop nutrient, Chief Financial Officer Larry Stranghoener said today. The company yesterday cut its fiscal second-quarter forecast for potash and phosphate shipments as international buyers delay purchases.

Monster Worldwide Inc. retreated 5 percent to $5.93. The online jobs site seeking a buyer may fail to cement a deal after suitors such as TPG Capital and Apollo Global Management LLC passed, said two people familiar with the matter.

Cisco surged 4.8 percent to $17.66. The maker of computer- networking equipment reported profit that topped analysts’ estimates as price reductions helped spur sales and cost cuts kept margins intact.

Juniper Networks Inc. the second-largest maker of networking gear, added 1.2 percent to $17.55. F5 Networks Inc., a maker of equipment for managing data traffic, gained 1.1 percent to $87.50.

Abercrombie & Fitch Co. jumped 34 percent to $41.92. The teen retailer with more than 1,000 stores raised its forecast for the year after exceeding its estimates in the third quarter.

Sales in the period ended Oct. 27 rose 9 percent, while international sales jumped 37 percent.

Facebook soared 13 percent to $22.36. Restrictions lift today on 804 million shares held by former employees and those who sold at the IPO, almost doubling the total available for trading, according to a regulatory filing.

The operator of the world’s most popular social-networking service has lost about half its value since going public as the number of shares rose and investors fretted about the company’s ability to boost mobile-advertising sales. With its most recent quarterly earnings report, Facebook convinced investors that it has potential to boost ad revenue, helping to drive up the price of shares released for trading today, said Brian Wieser, an analyst at Pivotal Research Group.

Zynga Inc. rose 1.4 percent to $2.14. The largest maker of games played on social networks said Chief Financial Officer David Wehner is departing to take a senior finance job at Facebook. He’ll be succeeded by Mark Vranesh.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

How does seeing the difference permit unity?

Quite simply, because physically speaking there cannot be unity, since the physical plane consists of shapes,

and all shapes are different.

Unity only exists in the heart.  It is a feeling:  love.

And in love the notion of self disappears;  only the other remains.

Swami Prajnanpad, 1891-1974

As ever,

 

Carolann

 

The gods cannot help those who don’t seize

opportunities.

-Confucius, 551-479 BCE

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: Today is World Kindness Day.

 

The new James Bond film, Skyfall had the best North American opening this past weekend for a Bond movie ever, grossing $87.8 million.  Gary and I went to see it and we loved it!

To commemorate 50 years of James Bond, from his screen debut in 1962 in Dr. No, Maclean’s has produced a special edition of pictures and stories about villains, the guns, the gadgets and the girls that crossed paths with 007. Check out  www.macleans.ca/bond.

 

On this day in 1997, the Lion King made its debut on Broadway.  –Steven Russolillo, WSJ, 11/13/12.

And also on this day in…

1856 – Louis Brandeis, jurist was born.

1850 – Robert Louis Stevenson, author was born.

1927 – New York’s Holland Tunnel officially opens for traffic.

1945 – Charles de Gaulle is elected president of France.

1949 – Whoopi Goldberg, actress was born.

1952 – Harvard’s Paul Zoll becomes the first man to use electric shock to treat cardiac arrest.

1956 – The U.S. Supreme Court unanimously strikes down two Alabama laws requiring racial segregation on public buses.

Ask yourself: Have you been kind today?  Make kindness your daily modus operandi and change your world. –Annie Lennox, 1954-

photos of the day

November 13, 2012

A Sumatran tiger stands on a tree at a zoo in Medan, North Sumatra, Indonesia. There are only around 250 of the cats left in the wild, compared to about 1,000 in the 1970s, according to the World Wildlife Fund, meaning that the Panthera tigris sumatrae could become the first large predator to go extinct in the 21st century.

Binsar Bakkara/AP

The Sheldon Glacier with Mount Barre in the background, is seen from Ryder Bay near Rothera Research Station, Adelaide Island, Antarctica. A new NASA/British Antarctic Survey study examines why Antarctic sea ice cover has increased under the effects of climate change over the past two decades.

British Antarctic Survey/Reuters

An Indian Hindu woman holds a tray filled with earthen lamps and steps out of the door during Diwali in New Delhi, India. Diwali, the festival of lights dedicated to the Goddess of wealth Lakshmi, is being celebrated across the country.

Altaf Qadri/AP

 

Market Closes for November 13th, 2012:

 

Market  Index	Close	Change
Dow  Jones	12756.18	-58.90    -0.46%
S&P 500	1374.53	-5.50    -0.40%
NASDAQ	2883.889	-20.366    -0.70%
TSX	12134.66	-56.80
		-0.47%

International Markets

Market  Index	Close	Change
NIKKEI	8661.05	-15.39
		-0.18%
HANG  SENG	21188.65	-241.65
		-1.13%
SENSEX	18618.87	-51.47
		-0.28%
FTSE 100	5786.25	+18.98
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.691	1.716
CND.   30 Year Bond	2.286	2.309
U.S.   10 Year Bond	1.5911	1.6131
U.S.   30 Year Bond	2.7240	2.7477

Currencies

BOC Close	Today	Previous
Canadian $	1.00220	1.00169
US   $	0.99780	0.99831
Euro Rate  1 Euro=		Inverse
Canadian   $	1.27297	0.78557
US  $	1.27017	0.78730

Commodities

Gold	Close	Previous
London Gold   Fix	1724.70	1731.55
Oil	Close	Previous
WTI Crude Future	85.38	86.07
BRENT	109.01	110.21

Market Commentary:

Canada

By Eric Lam

Nov. 13 (Bloomberg) — Canadian stocks fell for a second day after Finance Minister Jim Flaherty said he will delay plans to balance the country’s budget by one year and run larger-than- anticipated deficits.

Inmet Mining Corp. slipped 5.3 percent after saying it is not in talks about a sale of the company. Suncor Energy Inc., Canada’s largest oil producer, declined 2.5 percent after the International Energy Agency cut its forecast for world oil demand. CML HealthCare Inc. jumped 7.8 percent, the most in almost seven years, after National Bank Financial analysts raised their recommendation on the stock.

The Standard & Poor’s/TSX Composite Index fell 56.80 points, or 0.5 percent, to 12,134.66 in Toronto, erasing earlier gains of as much as 0.2 percent. The benchmark Canadian equity gauge is up 1.5 percent this year.

Flaherty released a budget update that projects a return to balance by the fiscal year beginning April 2016, one year later than forecast in his March budget, as he cut the government’s revenue projections by C$36.2 billion ($36.1 billion) over the next five years. European lawmakers gave Greece two more years to lower its deficit.

“The Canadian economy is getting weaker and the fiscal cliff is just one other reason to be very cautious on growth and deficit targets,” said Stephen Gauthier, a fund manager with Fin-XO Securities Inc. in Montreal. His firm manages about C$600 million. “The Greek situation is not sustainable for two years. It’s a bankruptcy delay. Do they really have another two years? You have to do something at some point.”

The U.S., Canada’s largest trading partner, faces $607 billion in automatic tax increases and spending cuts scheduled to come into effect in 2013 that may push the nation into a recession in Congress doesn’t act to avert the so-called fiscal cliff.

European policy makers have given Greece until 2016 to cut the deficit to 2 percent of gross domestic product, pledging to plug the resulting financing gaps in order to keep the country in the single currency. Finance ministers put off until Nov. 20 a decision on how to cover additional Greek needs of as much as 32.6 billion euros ($41 billion) and left unclear whether the International Monetary Fund will continue to contribute.

Gold mining and energy companies contributed most to losses in the S&P/TSX as eight of 10 industries fell. Trading volume was 14 percent lower than the 30-day average.

CML HealthCare rose 7.8 percent to C$6.22, the biggest gain since November 2005. Trevor Johnson, an analyst at National Bank Financial, raised the stock to sector perform from underperform, citing the company’s cheap valuation. The stock is down 36 percent this year, compared with a 21 percent gain for the S&P/TSX Health Care Index.

Inmet retreated 5.3 percent to C$54.44, after denying it was considering a sale of the company. The Daily Mail reported yesterday without citing anyone that First Quantum, advised by Goldman Sachs Group Inc. and Jefferies Group Inc., held informal takeover talks with Inmet. First Quantum lost 2.5 percent to C$22.19.

Harry Winston Diamond Mines Ltd. fell 2.2 percent to C$13.15 after agreeing to pay $500 million for BHP Billiton Ltd.’s interest in the Ekati diamond mine in the Northwest Territories as well as its marketing operations for the precious stones.

Suncor, Canada’s largest oil producer, declined 2.5 percent to C$32.55 as oil dropped for a second day. Global consumption for this quarter will average 90.1 million barrels a day, which is 0.3 percent less than previously forecast, the IEA said in a monthly report today.

Shoppers Drug Mart Corp. rose 3.3 percent to C$42.46 after reporting third-quarter revenue of C$3.21 billion, ahead of analysts’ estimates of C$3.2 billion. The retail pharmacy chain’s adjusted earnings of 81 Canadian cents was in line with expectations.

US

By Nikolaj Gammeltoft and Adria Cimino

Nov. 13 (Bloomberg) — U.S. stocks fell, halting a two-day gain in the Standard & Poor’s 500 Index, as concern about the federal budget debate erased a rally led by Home Depot Inc.

Microsoft Corp. slipped 3.2 percent after saying its Windows president is departing. AK Steel Holding Corp. tumbled 18 percent as it forecast a wider-than-anticipated fourth- quarter loss with a decline in prices for the last three months of the year. Home Depot, the largest U.S. home improvement retailer, rallied 3.6 percent after profit beat estimates.

The S&P 500 dropped 0.4 percent to 1,374.53 at 4 p.m. in New York, after rallying as much as 0.6 percent earlier in the day. The Dow Jones Industrial Average decreased 58.90 points, or 0.5 percent, to 12,756.18. Volume for exchange-listed stocks in the U.S. was 6.2 billion shares, 3.7 percent above the three- month daily average.

“The stock market is going to be captive to Washington for the time being,” Michael Mullaney, who helps manage $9.5 billion as chief investment officer at Fiduciary Trust in Boston, said in a phone interview. “The market would like to go up a little bit from here after it has been beaten down, but it’s going to be hard pressed to sustain a rallying state until we have resolution on the fiscal cliff.”

The S&P 500 lost 2.4 percent last week, the biggest decline in five months, as President Barack Obama’s re-election set up a budget showdown with the Republican-controlled House of Representatives. The benchmark gauge for U.S. equities has lost 6.2 percent since its high for the year on Sept. 14, paring its 2012 gain to 9.3 percent.

If Congress doesn’t act by the end of the year, $607 billion in automatic spending cuts and tax increases are scheduled to take effect starting in January. Obama invited the top Democratic and Republican leaders to the White House this week to begin talks on a plan to avert the fiscal cliff.

Obama is meeting with labor leaders today and business executives such as David Cote of Honeywell International Inc., Alan Mulally of Ford Motor Co., and Kenneth Chenault of American Express Co. tomorrow. He’s trying to build support for extending middle-class tax cuts now and designing a “balanced” approach that relies on spending cuts and tax increases that would require immediate concessions from Republicans.

“The budget uncertainty is a risk,” said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg. “All will depend on Obama’s leadership. The Greek debt problem is a risk that remains. We’re not out of the woods yet.”

Stocks rose earlier after Spanish 10-year bonds reversed a decline, leaving the yield on the securities four basis points lower at 5.85 percent as European policy makers worked to alleviate the region’s debt crisis. Equities also gained as Greek Finance Minister Yannis Stournaras told a European Parliament hearing that yesterday’s euro-area meeting was “constructive” and he expects an accord to be reached on rescue funding at a Nov. 20 meeting.

The euro-area finance ministers gave Greece two extra years until 2016 to wrestle down its budget deficit to 2 percent of gross domestic product, pledging to plug the resulting financing gaps in order to keep the country in the single currency.

Finance ministers put off until Nov. 20 a decision on how to cover additional Greek needs of as much as 32.6 billion euros ($41 billion) and left unclear whether the International Monetary Fund will continue to contribute.

Technology companies had the largest decline out of 10 groups in the S&P 500 today, losing 0.8 percent. Microsoft retreated 3.2 percent, the most in the Dow, to $27.09. Windows President Steven Sinofsky is departing, while Julie Larson-Green will take charge of all software and hardware related to the flagship operating system. The changes are effective immediately, the world’s largest software maker said.

Cisco Systems Inc. jumped 6.9 percent to $18.02 as of 5:13 p.m. in New York. After the market close, the biggest maker of computer networking equipment reported a quarterly profit that exceeded analysts’ estimates as price reductions helped spur sales and cost cuts kept margins intact.

AK Steel fell 18 percent to $4.50. The supplier of the metal to U.S. automotive and construction customers said average steel selling prices will be down 5 percent compared with the third quarter in part because of worsening global business conditions. Lower raw-material costs won’t fully make up for the decline in prices, it said.

Weatherford International Ltd. lost 16 percent to $9.15.

The world’s fourth-largest oilfield-services provider reported third-quarter revenue of $3.82 billion, less than the $3.9 billion average of 24 estimates compiled by Bloomberg.

Big Lots Inc. slumped 5 percent, the biggest decline in the S&P 500, to $27.48. The discount chain was cut to sell from hold by Deutsche Bank analyst Charles Grom. The Columbus, Ohio-based company’s increasing use of promotions and “lackluster” store checks raise concern margins will become challenged, New York- based Grom wrote in a note.

Home Depot added 3.6 percent to $63.38, its highest level since 2000. U.S. real estate values are rebounding after a five- year decline, sending homeowners back to stores for remodeling supplies. Sales at Home Depot locations open at least a year rose 4.2 percent, the sixth straight quarterly increase, as customers visited more often and spent more per trip.

Xerox Corp. gained 1.4 percent to $6.42 after it boosted its quarterly dividend by 35 percent to 5.75 cents a share. The company also increased its share buyback plan by $1 billion and gave a fourth-quarter profit forecast that missed analysts’ estimates while it moves to become a services-led business amid declining printing revenue.

Greenbrier Cos. jumped 20 percent to $16.73. Activist investor Carl Icahn is planning talks with the railcar maker that may include strategic opportunities after buying a 9.99 percent stake in the business, which he described as undervalued.

Advanced Micro Devices Inc., the second-largest maker of processors for personal computers, rose 5 percent to $2.09.

Reuters reported that the company hired JPMorgan Chase & Co. to explore options including a sale. AMD said it isn’t actively pursuing a sale of the company or a significant sale of assets.

U.S. stocks will continue to advance toward the end of the year as this is traditionally a strong period for equities, according to Bank of America Corp.’s Mary Ann Bartels. There may be a “sharp correction” in stock prices at the beginning of 2013 as the bull market that began in March 2009 enters its fourth year, she said.

December has been the best month for the S&P 500 since 1950 with an average gain of 1.7 percent, according to the Stock Trader’s Almanac. The stock market may also get a year-end boost from a so-called Santa Claus rally — an upswing in the last five days of the year and the first two in January, the almanac said.

“The market is oversold and is still likely to have a choppy year-end rally,” Bartels, a New York-based technical analyst with Bank of America, wrote in a note yesterday. “The hurdle after the election is typically the first quarter in the following year,” she said. “Where we will be wrong is if the S&P 500 can not hold 1370.”

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Knowledge is the annihilation of the separation between me and the other.

Swami Prajnanpad, 1891-1974

As ever,

 

Carolann

 

Free speech is life itself.

-Salman Rushdie, 1947-

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:

REMEMBER

 

And on this day in…

1934 – Carl Sagan, astronomer, was born.

1938 – Kristallnacht, Germany.

1965 – Nine Northeastern states and parts of Canada go dark in the worst power failure in history, when a switch at a station near Niagara Falls fails.

1967 – NASA launches Apollo 4 into orbit with the first successful test of a Saturn V rocket.

1972 – Bones discovered by the Leakeys push human origins back 1 million years.

1983 – Alfred Heineken, beer brewer from Amsterdam, is kidnapped and held for a ransom of more than $10 million.

1989 – The Berlin Wall is opened after dividing the city for 28 years.

 

The question is not whether we will die, but how we will live. –Joan Borysenko.

photos of the day

November 9, 2012

Remembrance Day poppies lie on the Tomb of the Unknown Soldier at the National War memorial in Ottawa, Canada.

Adrian Wyld/The Canadian Press/AP

Thai oarsmen row a royal barge during the Royal Barge Procession on the Chao Phraya River in Bangkok, Thailand. Golden barges shaped like swans and mythical sea creatures glided down the Chao Phraya river that winds through the Thai capital of Bangkok in a 700-year-old ceremony, with more than 2,000 rowers taking part.

Sukree Sukplang/Reuters

 

Market Closes for November 9th, 2012:

 

Market  Index	Close	Change
Dow  Jones	12815.39	+4.07    +0.03%
S&P 500	1379.85	+2.34    +0.17%
NASDAQ	2904.874	+9.289    +0.32%
TSX	12196.80	+5.75
		+0.05%

International Markets

Market  Index	Close	Change
NIKKEI	8757.60	-79.55
		-0.90%
HANG  SENG	21384.38	-182.53
		-0.85%
SENSEX	18683.68	-162.58
		-0.86%
FTSE 100	5769.68	-6.37
		-0.11%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.716	1.718
CND.   30 Year Bond	2.309	2.313
U.S.   10 Year Bond	1.6131	1.6165
U.S.   30 Year Bond	2.7477	2.7514

Currencies

BOC Close	Today	Previous
Canadian $	1.00169	1.00030
US   $	0.99831	0.99970
Euro Rate  1 Euro=		Inverse
Canadian   $	1.27307	0.78551
US  $	1.27091	0.78684

Commodities

Gold	Close	Previous
London Gold   Fix	1731.55	1731.20
Oil	Close	Previous
WTI Crude Future	86.07	85.09
BRENT	110.21	108.12

Market Commentary:

Canada

By Eric Lam

Nov. 9 (Bloomberg) — Canadian stocks rose as an advance in financial shares offset declines among raw-material companies amid better-than-estimated U.S. economic data.

Rona Inc. jumped 8.2 percent after its chief executive officer announced he was stepping down. Canadian Natural Resources Ltd. added 1.6 percent. Niko Resources Ltd., the worst performer on the Standard & Poor’s/TSX Composite Index this year, tumbled 17 percent after it reported finding no commercial reservoir in drilling at a well in Indonesia.

The S&P/TSX rose 5.75 points, or less than 0.1 percent, to 12,196.80 at 4 p.m. in Toronto. Bank and energy shares contributed the most to gains as four of 10 industries in the Canadian equity gauge advanced. Raw-material producers and utility companies fell the most.

“We’re working through the uncertainty,” 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). “The concerns are the same that’s bothering everyone else, the outlook in Europe and the uncertainty in the U.S. where everything has been put on pause during the election.”

Equities dropped in the previous two days as investors shifted focus to Europe and the U.S. budget debate after Americans re-elected President Barack Obama. The U.S. risks entering a recession should policy makers fail to avoid the so- called fiscal cliff of automatic tax increases and spending cuts next year, Fitch Ratings said.

Obama said today he was “open to compromise” on budget negotiations and reiterated that a solution must include spending cuts and raising revenue, including raising taxes on the wealthiest.

Confidence among U.S. consumers rose more than forecast in November, reaching a five-year high as the labor market showed signs of improvement, a report today showed.

Euro-area finance chiefs won’t make the call to release 31.5 billion euros ($40.1 billion) of aid for Greece that has been frozen since June when they meet in Brussels on Nov. 12, a European Union official said yesterday on condition of anonymity because the deliberations are private.

Rona surged 8.2 percent to C$10.12, the most in three months. CEO Robert Dutton, who rebuffed a hostile bid from Lowe’s Cos., is stepping down after 35 years at the Canadian home improvement retailer. Rona didn’t give a reason for Dutton’s departure, and said Dominique Boies, the chief financial officer, will be acting CEO until a replacement is found.

Manulife Financial Corp. added 3.1 percent to C$12.18. Bank of Nova Scotia rose 0.5 percent to C$53.80.

Suncor Energy Inc., Canada’s largest oil producer, fell 0.2 percent to C$33.26 and Canadian Natural Resources Ltd. climbed 1.6 percent to C$28.48. Niko Resources plunged 17 percent to C$9.87.

TMX Group Ltd. fell 0.6 percent to C$48.38. The Toronto Stock Exchange owner bought by a group of banks and pension funds posted third-quarter profit that missed analyst estimates after a C$3.73 billion takeover combined Canada’s stock markets with securities clearing.

US

By Rita Nazareth and Sarah Jones

Nov. 9 (Bloomberg) — U.S. stocks rose, trimming the biggest weekly drop since June in the Standard & Poor’s 500 Index, as data showing consumer confidence climbed to a five- year high offset concern about fiscal cliff negotiations.

Boeing Co., Caterpillar Inc. and AT&T Inc. advanced at least 1 percent to pace gains among the largest companies. Apple Inc., the world’s most valuable company, increased 1.7 percent after an 8 percent plunge over the previous three days. J.C. Penney Co. dropped 4.8 percent after reporting a third-quarter loss that was larger than analysts had estimated.

The S&P 500 gained 0.2 percent to 1,379.85 at 4 p.m. New York time. It fell 2.4 percent this week. The Dow Jones Industrial Average added 4.07 points, or less than 0.1 percent, to 12,815.39. Volume for exchange-listed stocks in the U.S. was 6.6 billion shares, 11 percent above the three-month average.

“The consumer sentiment data was a strong number and that has given the market some strength,” Timothy Ghriskey, the chief investment officer at Solaris Group LLC, which manages about $2 billion in Bedford Hills, New York, said in a phone interview. “Yet people are focused on news about the discussions on the fiscal cliff. There does seem to be a movement to force our politicians to come to an agreement so we don’t fall into a recession.”

The Thomson Reuters/University of Michigan’s preliminary index of consumer sentiment for November increased to 84.9 from 82.6 the prior month. Economists projected a reading of 82.9 for the gauge, according to the median forecast of 71 economists surveyed by Bloomberg.

President Barack Obama invited the top Democratic and Republican leaders in Congress to the White House next week to begin talks on a plan to avert the so-called fiscal cliff.

“The American people voted for action,” Obama said at the White House, giving his first public remarks on the budget and deficit since winning re-election Nov. 6. He again said any solution must include spending cuts and raising revenue, including raising taxes on the wealthiest.

If Congress doesn’t act by the end of the year, $607 billion in automatic spending cuts and tax increases are scheduled to take effect starting in January. Obama repeated the broad outline he’s laid out during his re-election campaign for a “balanced” approach to cutting the deficit.

“The market wants Congress to work,” said Tom Wirth, who helps manage $1.6 billion as senior investment officer for Chemung Canal Trust Co., in Elmira, New York. “Hopefully we’ll see Congressmen wanting to work with each other versus just fight. Nothing has really changed in Europe. It’s still going to be an issue. We’re seeing a deceleration of earnings growth. That shows the economy continues to grow at a tepid pace.”

Investors also watched Europe’s latest attempts to tame its debt crisis. Euro-area finance ministers may not make a decision on unlocking funds for Greece until late November as they await a report on the country’s compliance with bailout terms, a European Union official said yesterday.

The S&P 500 still has risen 9.7 percent this year as central banks around the world stepped up stimulus to boost the economy. About 71 percent of companies that released quarterly results have beaten analysts’ estimates while 60 percent missed sales projections, according to data compiled by Bloomberg.

Seven out of 10 groups in the S&P 500 rose today as technology, phone and health-care companies had the biggest gains. Boeing added 3.2 percent to $73.25. Caterpillar increased 1.5 percent to $84.95. AT&T rose 1 percent to $33.54.

Apple added 1.7 percent to $547.06. The stock yesterday fell to the lowest level since May 18 amid concern the company hasn’t been able to keep up with demand for the latest version of the iPhone, which accounts for about two-thirds of the company’s profit.

Lions Gate Entertainment Corp. rose 14 percent to $16.68 after video sales of “The Hunger Games” helped quarterly profit beat analysts’ estimates and bolstered the company’s outlook for the rest of the year.

Zipcar Inc. jumped 16 percent to $7. The company that rents cars by the hour or day reported a third-quarter profit that topped analysts’ estimates and raised the lower end of its annual profit forecast.

J.C. Penney retreated 4.8 percent to $20.64. Excluding items including store restructuring and management-transition costs, the loss was 93 cents a share. The average of eight analysts’ estimates compiled by Bloomberg was for a 7-cent loss.

Groupon Inc. sank 30 percent to $2.76. The largest daily- deal website reported third-quarter revenue that missed estimates as sales of coupons overseas declined from the previous period.

Walt Disney Co. dropped 6 percent to $47.06 after reporting fiscal fourth-quarter sales that missed analysts’ estimates amid declines in film revenue and ABC network advertising.

Have a wonderful weekend everyone.

 

Be magnificent!

 

The key to an easy relationship with other people is not to impose your ego,

nor to crush the ego of others.

Swami Prajnanpad, 1891-1974

As ever,

 

Carolann

 

Happiness is nothing more than

good health and a bad memory.

-Albert Schweitzer, 1875-1965

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 didn’t get to see Barbra Streisand when she was in Vancouver recently, but everyone I know who saw the show, said it was over the top.  There is a new treasure-trove CD out.  It is entitled Release Me and is a collection of previously unreleased recordings that have been hibernating in the vaults for decades.  Three of the best are the oldest – Willow Weep for Me (1967), Jimmy Webb’s heartbreaking Didn’t We (1970), and a version of Randy Newman’s masterpiece I Think It’s Going to Rain Today (1971).

And on this day in…

1519 – Cortes conquers Mexico.

1656 – Edmund Halley, astronomer, was born.

1793 – The Louvre opens in Paris.

1887 – Doc Holliday, who fought on the side of the Earp brothers during the Gunfight at the O.K. Corral 6 years earlier, dies of tuberculosis in Glenwood Springs, Colorado.

1900 – Margaret Mitchell, writer, was born.

1923 – Adolf Hitler attempts a coup in Munich, the “Beer Hall Putsch,” and proclaims himself chancellor and Ludendorff dictator.

1932 – Franklin D. Roosevelt is elected 32nd president of the United States.

1942 – The United States and Great Britain invade Axis-occupied North Africa.

1949 – Bonnie Raitt, singer, was born.

 

I love receiving your emails, even though I do not reply to every one, I DO read every one of them.  Today, I received the best e-mail that an advisor could ever hope to receive from clients.  These wonderful people have been my clients for over 2 decades…

The husband wrote,

Dear Carolann,

…just opened the mail and told me how well we are doing thanks to your wonderful handling of our accounts.

Thanks to you we have never been so well off financially.

Bless you! XO

I love you all, so I must tell you now dear friends, that with the US election over, I expect that the media will turn its attention to alarming us about the future – the fiscal cliff, the geopolitical situation etc.etc.  Take my advice – tune it out.

 

Success is not final, failure is not fatal:  It is the courage to continue that counts.  –Winston Churchill.

photos of the day

November 8, 2012

People enjoy an installation of the Argentinian artist and architect Tomas Saraceno, in Milan, Italy. ‘On Space Time Foam’ is a multilayered aerial installation featuring surfaces of clear film in the air for visitors to walk, crawl, and lie in.

Luca Bruno/AP

It is the function of art to renew our perception. –Anais Nin.

Swiss Interior Minister Alain Berset watches the launch of a model rocket with the children of employees of the University of Bern in the Center for Space and Habitability in Switzerland on National Kids Future Day.

Ruben Sprich/Reuters

 

Market Closes for November 8th, 2012:

 

Market  Index	Close	Change
Dow  Jones	12811.32	-121.41    -0.94%
S&P 500	1377.51	-17.02    -1.22%
NASDAQ	2895.585	-41.704    -1.42%
TSX	12191.05	-39.54
		-0.32%

International Markets

Market  Index	Close	Change
NIKKEI	8837.15	-135.74
		-1.51%
HANG  SENG	21566.91	-532.94
		-2.41%
SENSEX	18846.26	-56.15
		-0.30%
FTSE 100	5776.05	-15.58
		-0.27%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.718	1.747
CND.   30 Year Bond	2.313	2.343
U.S.   10 Year Bond	1.6165	1.6466
U.S.   30 Year Bond	2.7514	2.8279

Currencies

BOC Close	Today	Previous
Canadian $	1.00030	0.99666
US   $	0.99970	1.00335
Euro Rate  1 Euro=		Inverse
Canadian   $	1.27526	0.78416
US  $	1.27488	0.78439

Commodities

Gold	Close	Previous
London Gold   Fix	1731.20	1717.15
Oil	Close	Previous
WTI Crude Future	85.09	84.44
BRENT	108.12	107.66

Market Commentary:

Canada

By Lu Wang

Nov. 8 (Bloomberg) — Canadian stocks fell for a second day, sending the benchmark index to the lowest level since September, as energy shares slumped amid worse-than-expected earnings from Canadian Natural Resources Ltd.

Energy producers fell the most among 10 industry groups in the Standard & Poor’s/TSX Composite Index, sinking 0.9 percent.

Canadian Natural tumbled 3.6 percent after reporting a decline in third-quarter profit due to lower gas and oil prices.

Manulife Financial Corp. slipped 1.5 percent as the country’s largest insurer delayed its objective of reaching C$4 billion ($4 billion) in annual profit. Sun Life Financial Inc. gained 3.8 percent after earnings beat analysts’ estimates.

The S&P/TSX dropped 39.54 points, or 0.3 percent, to 12,191.05 at 4 p.m. in Toronto. The benchmark Canadian equity gauge is up 2 percent this year.

“The stock market is waking up now to how low the Canadian oil price is and drilling has almost stopped in some areas,” Bill Harris, portfolio manager with Avenue Investment Management in Toronto. His firm manages about C$275 million and recently sold out its holdings in Canadian Natural.

Energy is the second-biggest industry after financials, making up about a quarter of the S&P/TSX. Canadian Natural is among producers that have cut spending and shut gas wells after prices in New York dropped to a 10-year low in April.

Shares of Canadian Natural slumped 3.6 percent to C$28.02.

The nation’s third-largest oil and natural-gas producer posted quarterly profit excluding one-time items of 32 cents a share, missing the 50-cent average of 18 analyst estimates compiled by Bloomberg.

Suncor Energy Inc., Canada’s largest energy company by market value, declined 1.1 percent to C$33.31.

Among other commodity stocks, Aurizon Mines Ltd. slumped 11 percent, the most since December 2008, to C$4.08. The gold miner reported third-quarter profit that trailed analysts’ estimates and reduced its full-year production forecast.

Western Forest Products Inc. tumbled 6.1 percent to C$1.23.

The company said it broke even in the third quarter. Analysts expected a profit of 2 cents a share, according to a Bloomberg survey.

Kinross Gold Corp. advanced 8.8 percent, the most in the S&P/TSX, to C$10.16. Canada’s third-largest producer reported profit that beat analysts’ estimates and Canaccord Financial Inc. raised its rating on the stock.

Manulife slipped 1.5 percent to C$11.82. The owner of Boston-based John Hancock Financial expects to have C$4 billion in so-called core earnings by 2016 after previously stating a goal of 2015. The Toronto-based insurer said in August that the worsening economy would make it hard to reach the 2015 target.

CML Healthcare Inc. plunged 16 percent to C$7.16, the lowest level since December 2003. The provider of medical imaging services reported third-quarter sales of C$85.5 million, missing the average analyst estimate of C$92.1 million.

Sun Life jumped 3.8 percent to C$25.29, the highest since October 2011. Canada’s third-largest insurer reported third- quarter profit of 64 cents a share. Analysts, on average, estimated 43 cents, according to a Bloomberg survey.

Air Canada climbed 2.1 percent to C$1.91. The country’s largest airline reported higher third-quarter profit than analysts estimated as passenger traffic and revenue climbed while operating expenses declined. Excluding foreign-exchange gains, earnings were 82 cents a share, topping the 73-cent average of 11 estimates from analysts surveyed by Bloomberg.

Canaccord Financial rallied 5.7 percent, the most since August, to C$4.98. Canada’s largest non-bank brokerage by assets posted quarterly results that beat analysts’ estimates.

US

By Rita Nazareth and Sarah Jones

Nov. 8 (Bloomberg) — U.S. stocks declined, extending losses after the re-election of President Barack Obama and sending the Dow Jones Industrial Average to the lowest level since July, amid concern about Greece’s financial aid payment.

Apple Inc., the world’s most valuable company, retreated 3.6 percent, extending its plunge since its September high to 23 percent. McDonald’s Corp., the world’s largest restaurant chain, dropped 2 percent after its monthly store sales declined for the first time in nine years. Prudential Financial Inc., the second- largest U.S. life insurer, decreased 4.8 percent after lowering its assumptions for equity and bond returns.

The Standard & Poor’s 500 Index declined 1.2 percent to 1,377.51 at 4 p.m. New York time, dropping 3.6 percent in two days, the biggest slump in a year. The benchmark gauge for U.S. equities fell below its average price of the last 200 days of 1,380.71. The Dow sank 121.41 points, or 0.9 percent, to 12,811.32. Volume for exchange-listed stocks in the U.S. was 6.9 billion shares, or 15 percent above the three-month average.

“It’s hard bargaining for Greece,” said Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion. “The risk of a recession is still out there. Apple might be a victim of its own success because it’s risen so much. With its huge market cap, as Apple goes, so goes the broader market.”

Equities extended yesterday’s tumble as investors turned to the budget debate and Europe’s crisis following President Obama’s re-election. Energy, financial and technology shares had the biggest losses in the S&P 500 in two days, falling at least 4.2 percent. The Dow dropped 3.3 percent in the period.

Obama’s presidential victories have preceded the two biggest post-Election Day selloffs on record, according to data compiled by Bloomberg starting in 1896. The Dow’s 9.7 percent plunge in the two days after he won his first term in 2008 came at the height of the credit crisis that erased $11 trillion from American equity values. This year’s two-day drop ranks second.

The Dow lost 32 percent from Election Day in 2008 to its 12-year low of 6,547.05 on March 9, 2009. From there it rallied 96 percent, handing Obama the biggest gain for any first term president since Bill Clinton, data compiled by Bloomberg show.

Stocks have tumbled since the re-election of Obama and a split Congress on concern they’ll be unable to compromise and avoid a series of changes that have become known as the fiscal cliff. The Congressional Budget Office released a report today reaffirming its previous projections that allowing the scheduled tax increases and automatic spending cuts to take effect would lead to a recession in the first half of 2013. Congress returns to Washington next week for a post-election session that will focus on the fiscal cliff.

Euro-area finance ministers may not make a decision on unlocking funds for Greece until late November as they await a full report on the country’s compliance with the terms of its bailout, a European Union official said.

Greek Prime Minister Antonis Samaras mustered support in Parliament to approve austerity measures needed to unlock bailout funds, in a tense vote that weakened his majority after the expulsion of seven dissenting lawmakers. The European Central Bank kept interest rates on hold today as the economic outlook worsens and Spain resists asking for a bailout that would open the door to ECB bond purchases.

“We’re not out of the woods yet,” German Finance Minister Wolfgang Schaeuble said in Hamburg today. “At the moment, I don’t see how we can take the decision already next week.”

Apple, the most valuable company, slumped 3.6 percent to $537.75. It dropped to the lowest level since May 18 and trimmed this year’s surge to 33 percent. The company hasn’t been able to keep up with demand for the latest version of the iPhone, which accounts for about two-thirds of the company’s profit.

McDonald’s dropped 2 percent to $85.13. Sales at stores open at least 13 months fell 1.8 percent in October as U.S. customer traffic decreased. Analysts projected a drop of 1.1 percent, the average of estimates compiled by Consensus Metrix. after narrowing its full-year profit forecast.

Prudential slumped 4.8 percent, the most since May, to $52.76. The Newark, New Jersey-based company cut its projection of annual stock market returns, including dividends, to 8 percent from 9.25 percent. The projection for bond returns was lowered by about 100 basis points, the company said on a conference call today. The new estimate is for 4.6 percent total returns.

Kohl’s Corp. slipped 5.1 percent to $51.55. The third- largest U.S. department-store chain fell after narrowing its full-year profit forecast.

Monster Beverage Corp. slid 1.3 percent to $44.40 after posting third-quarter profit that trailed analysts’ estimates as sales growth slowed.

Autodesk Inc. lost 2.7 percent to $30.73. The software maker was downgraded to hold from buy at Jefferies Group Inc. by equity analyst Ross Macmillan. The 12-month share-price estimate is $34.

Bank of America Corp. climbed 1.7 percent to $9.39. The stock could almost double in three years as capital improves, operating costs decline and mortgage risks ease, according to Ed Najarian, banking analyst at ISI Group.

Najarian changed his rating to buy from hold, saying in a note to investors yesterday that Bank of America may be able to buy back common shares sooner and in greater amounts than he expected. The dividend, now 4 cents a share annually, could jump to an annual 20 cents next year and 40 cents by 2015, ISI wrote.

Qualcomm Inc. jumped 4.4 percent to $60.67. The largest seller of mobile-phone semiconductors forecast sales and profit that exceeded analysts’ estimates, helped by robust consumer demand for smartphones.

The company briefly gained a bigger market value than Intel Corp. for the first time. Under Chief Executive Officer Paul Jacobs, the company is gaining as consumers in developed nations snap up pricey new phones while those in emerging markets upgrade to devices that provide Web access. Intel, a laggard in the market for mobile-phone chips, is being hurt by slack personal-computer sales.

“Qualcomm has absolutely been one of the prime beneficiaries in smartphones and tablets,” said Mike Burton, an analyst at Brean Capital LLC. “This is a very strong report.”

CBS Corp. rose 1.1 percent to $34.36. The owner of the most-watched TV network said third-quarter profit increased 16 percent, beating analysts’ estimates on rising income from affiliate fees and sales of reruns.

Shares of smaller U.S. companies are performing well enough this quarter to signal a year-end rally in stocks, according to Ari Wald, an analyst at PrinceRidge Group LLC. The Standard & Poor’s MidCap 400 Index has risen relative to the S&P 500 since the quarter started. The S&P SmallCap 600 Index has followed suit more recently.

The increases in the index ratios are noteworthy because they happened “during a period of market consolidation, when investors tend to gravitate toward safer, bigger-cap names,” Wald, based in New York, wrote in a note yesterday.

Companies in the S&P 500 had a median market capitalization of $12.4 billion as of yesterday, according to data compiled by Bloomberg. The medians for the MidCap 400 and SmallCap 600 were $2.7 billion and $730 million, respectively. The S&P 500 posted a 3.2 percent decline for the quarter through yesterday.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

At one pole of my existence,

I am one with the stones and the tree branches.

Thus, I must submit to the yoke of the universal law.

It is this, in the end, that is the very basis of my life.

And that force comes from that which is closely bound up in the unity of the world,

which is in full communication with all things.

But at the other pole, I am distinct from all of the rest.

Here, I have broken the barriers of equality

and I find myself alone, as an individual.

I am absolutely unique, I am me, I am incomparable.

The whole of the mass of the universe can not crush this individuality that is mine.

I maintain it, despite the formidable gravitation of all that exists.

It is small in appearance, but great in reality.

Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

 

What a child doesn’t receive he can

seldom later give.

-P.D. James, 1920-

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

The Artist Next Door

By creating cultural spaces that are as altruistic as they are visually stunning, Theaster Gates challenges the world to reconsider the power and meaning of art.

• Interactive: The Innovator of the Year Awards

And on this day in…

1867 – Marie Curie, physicist, is born.

1913 – Albert Camus, French writer and existentialist, is born.

1917 – The Russian Revolution takes place; the Bolsheviks depose Czar Nicholas II.
1921 – Benito Mussolini declares himself to be leader of the National Fascist Party in Italy.
1940 – Tacoma Bridge in Washington State collapses.

1943 – Joni Mitchell is born   J.
1944 – President Franklin D. Roosevelt is elected to a fourth term by defeating Thomas Dewey.
1967 – President Lyndon B. Johnson signs a bill establishing the Corporation for Public Broadcasting.
1972 – President Richard Nixon is re-elected.

I’ve failed over and over and over again in my life and that is why I succeed. – Michael Jordan.

photos of the day November 7, 2012

President Barack Obama and supporters celebrate victory at McCormick Place, on November 7, 2012 in Chicago, Illinois.

Melanie Stetson Freeman/Staff

Someone dressed as the character Cookie Monster watches TV screens in Times Square giving presidential election results in New York on Tuesday, Nov. 6, 2012.

Carlo Allegri/Reuters

Market Closes for November 7th, 2012:

Market  Index	Close	Change
Dow  Jones	12932.73	-312.95    -2.36%
S&P 500	1394.53	-33.86    -2.37%
NASDAQ	2937.288	-74.645    -2.48%
TSX	12230.59	-130.61
		-1.06%

International Markets

Market  Index	Close	Change
NIKKEI	8972.89	-2.26
		-0.03%
HANG  SENG	22099.85	+155.42
		+0.71%
SENSEX	18902.41	+85.03
		+0.45%
FTSE 100	5791.63	-93.27
		-1.58%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.747	1.805
CND.   30 Year Bond	2.343	2.385
U.S.   10 Year Bond	1.6466	1.7507
U.S.   30 Year Bond	2.8279	2.9203

Currencies

BOC Close	Today	Previous
Canadian $	0.99666	0.99228
US   $	1.00335	1.00778
Euro Rate  1 Euro=		Inverse
Canadian   $	1.27327	0.78538
US  $	1.27754	0.78275

Commodities

Gold	Close	Previous
London Gold   Fix	1717.15	1716.50
Oil	Close	Previous
WTI Crude Future	84.44	88.71
BRENT	107.66	111.61

Market Commentary:

Canada

By Eric Lam

Nov. 7 (Bloomberg) — Canadian stocks fell the most in two weeks, led by energy producers amid the biggest drop in oil this year, as investors’ focus shifted to Europe and the U.S. budget debate after Americans re-elected President Barack Obama.

Agrium Inc. slumped 11 percent for its biggest loss in three years after posting quarterly profit and revenue that missed analysts’ estimates due to stalled Asian sales talks.

Rona Inc. lost 3.3 percent as earnings fell short of forecasts and the company said it will postpone closing five stores.

The Standard & Poor’s/TSX Composite Index fell 130.61 points, or 1.1 percent, to 12,230.59 in Toronto, its biggest loss since Oct. 23. The benchmark Canadian equity gauge is up 2.3 percent this year.

“The issue now is the U.S. fiscal cliff and how this uncertainty is going to work out,” said Anil Tahiliani, a fund manager with McLean & Partners Wealth Management Ltd. in Calgary. His firm manages about C$1 billion. “The issues in Europe haven’t been dealt with yet, they’re still hanging out there. Sometimes it goes off the radar and then back on.”

Now that the U.S. election has been decided, investors will turn their focus to the so-called fiscal cliff of $607 billion in tax increases and federal spending cuts set to kick in automatically in January. The Congressional Budget Office has said the U.S. economy would slow by as much as 0.5 percent next year if Congress fails to keep the increases from taking effect.

Greek police beat back protesters outside parliament with tear gas and water cannons as Prime Minister Antonis Samaras sought parliamentary approval of austerity legislation, the first of the votes required by Nov. 12 to get a 31 billion-euro ($40 billion) aid tranche.

Oil fell from a two-week high in New York, slipping 4.8 percent to settle at $84.44 a barrel after a U.S. government report showed inventories increased for the fourth time in five weeks. It is the biggest one-day decline for crude since Dec.14.

Supplies rose 1.77 million barrels to 374.8 million barrels last week, the Energy Department said. Stockpiles were forecast to gain 2 million barrels, according to the median of 11 analyst estimates in a Bloomberg survey.

Suncor Energy Inc., Canada’s largest oil producer, dropped 2.7 percent to C$33.67 and Canadian Natural Resources Ltd. dipped 3.8 percent to C$29.06.

Oil and gas companies contributed the most to losses on the Toronto Stock Exchange as nine of 10 industries retreated.

Trading volumes were 12 percent higher than the 30-day average.

Penn West Petroleum Ltd. slid 4.9 percent to C$10.64 for a fourth day of losses after yesterday firing four company executives. Chief Executive Officer Murray Nunns said in a phone interview the executives were fired for failing to cut costs.

Agrium, the largest U.S. farm-products retailer, plunged 11 percent to C$95.03, for its biggest loss since March 2009. The Calgary-based fertilizer maker reported adjusted earnings of $1.34 a share, compared with the average analysts’ estimate of $1.81, according to data compiled by Bloomberg.

Rona, targeted for acquisition earlier this year by U.S. retailer Lowe’s Cos., slumped 3.3 percent to C$9.82. The Boucherville, Quebec-based home improvement retailer reported third-quarter adjusted earnings of 27 Canadian cents a share, short of estimates of 40 cents, according to the median of seven analysts’ estimates surveyed by Bloomberg.

Bombardier Inc. fell 3.9 percent to C$3.45 after the Montreal-based company delayed the maiden flight of its CSeries jet to the end of June instead of this year due to unspecified “issues” with suppliers.

Research In Motion Ltd. retreated 8.3 percent to C$8.23, the biggest percentage loss since June. James Faucette, an analyst with Pacific Crest Securities in Portland, Oregon, said the company’s key upcoming BlackBerry 10 operating system may be “dead on arrival” as consumers will be turned off by the unfamiliar software, lack of compatible technology and few software applications.

US

By Rita Nazareth and Tom Stoukas

Nov. 7 (Bloomberg) — U.S. stocks slumped, giving the Dow Jones Industrial Average its biggest decline in a year, as investors’ focus turned to the budget debate and Europe’s debt crisis following President Barack Obama’s re-election.

All 10 groups in the Standard & Poor’s 500 Index fell as financial shares had the biggest losses. Bank of America Corp.and JPMorgan Chase & Co. slumped at least 5.6 percent. Peabody Energy Corp. and Alpha Natural Resources Inc. slid more than 9.6 percent on bets Obama’s re-election will mean more regulation for the coal industry. Apple Inc. retreated 3.8 percent, extending a plunge from its September high to 21 percent.

The S&P 500 fell 2.4 percent to 1,394.53 at 4 p.m. in New York. The Dow lost 312.95 points, or 2.4 percent, to 12,932.73.

Volume for exchange-listed stocks in the U.S. was 7.9 billion shares, or 32 percent above the three-month average.

“It’s going to be very messy,” said James Dunigan, who helps oversee $112 billion as chief investment officer in Philadelphia for PNC Wealth Management. He spoke in a telephone interview. “The wrestling around the fiscal cliff is going to leave a lot of bruises along the way. While I think we’ll get there, the path is not clear.”

Obama defeated Republican Mitt Romney, boosting speculation policy makers will add to stimulus in the world’s largest economy. While Obama received at least 303 electoral votes to Romney’s 206, Republicans kept a majority in the House of Representatives. Democrats retained control of the Senate.

Now that the election has been decided, investors will turn their focus to the $607 billion of tax increases and federal spending cuts set to kick in automatically in January, the so- called fiscal cliff. The Congressional Budget Office has said the U.S. economy would slow by as much as 0.5 percent next year if Congress fails to keep the increases from taking effect.

Former Federal Reserve Chairman Alan Greenspan said the election perpetuated the political status quo and hasn’t increased the probability of resolving the fiscal challenges.

Barclays Plc reduced its estimate for where the S&P 500 will end this year by 5 percent on concern a divided American government will delay a resolution over spending cuts and taxes. Barry Knapp, head of U.S. equity strategy at Barclays’s securities unit, cut his 2012 forecast for the S&P 500 to 1,325 from 1,395.

“With a polarized federal government we see little reason to increase the probability of avoiding the tax cliff, avoid brinksmanship over the debt ceiling or to expect pro-growth tax and entitlement reform in 2013,” Knapp wrote in a note to clients today. “In the near-term, we suggest cutting risk.”

Investors also watched the latest developments in Europe’s attempt to tame its debt crisis. Greek police beat back protesters outside Parliament with tear gas and water cannons as Prime Minister Antonis Samaras fought for approval of austerity measures demanded by the country’s lenders. European Central Bank President Mario Draghi said inflation risks are “very low” and the debt crisis is starting to hurt Germany.

“It’s a rush to safe haven,” said James Paulsen, the chief investment strategist at Minneapolis-based Wells Capital Management. His firm oversees about $325 billion. “People bring all their worst fears in. At the end of the day, you have the fiscal cliff, Europe and you see a risk-off trade.”

Companies which are most-tied to the pace of economic growth led the losses in equities today. The Morgan Stanley Cyclical Index sank 2.3 percent, the most since June 25.

A measure of financial shares in the S&P 500 slumped 3.5 percent. Banks also led the losses in the Dow. Bank of America sank 7.1 percent to $9.23. JPMorgan slid 5.6 percent to $40.48.

Goldman Sachs Group Inc. lost 6.6 percent to $117.98. Morgan Stanley sank 8.6 percent to $16.63.

Bankers were hoping Romney would win and give them more sympathetic regulators or that Republicans would take the Senate and they could rewrite Dodd-Frank financial overhaul law passed in 2010, said Edward Mills, a bank policy analyst at FBR Capital Markets in Arlington, Virginia and former aide on the House Financial Services Committee.

“Neither happened and the floodgate is going to open for the final rules under Dodd-Frank to go into effect and it’s likely to come in the next three to six months,” Mills said.

“The industry has gone from a posture of trying to delay to now where they are going to be pushing for certainty.”

Lincoln National Corp. tumbled 7.8 percent to $23.79, leading a decline among life insurers. Treasury yields declined as Obama’s re-election bolstered speculation the Fed will continue buying bonds to support the economy.

“A prolonged period of low interest rates is bad for insurers, resulting not only in lower investment earnings and profit compression on spread-based products, but also higher reserve increases and meaningful writedowns of goodwill,” Neil Strauss, a senior credit officer at Moody’s Investors Service, wrote in a Nov. 5 research note.

Coal companies took a gauge of energy shares in the S&P 500 down 3.1 percent. The industry has seen “increased regulatory oversight from the EPA on a number of issues under Obama’s first term, such as stricter permitting requirements in Appalachia and new regulations for emission reductions at utilities,” Lucas Pipes, an analyst at New York-based Brean Capital Carret & Co., said in an e-mail today. “There’s a perception that another Obama term is negative for coal.”

Peabody, the coal miner that’s largest in the U.S. by sales, fell 9.6 percent to $26.24. Bristol, Virginia-based Alpha, the second-biggest, dropped 12 percent to $8.45. Arch Coal Inc., Consol Energy Inc., James River Coal Co. and Walter Energy Inc. also declined.

Shares of defense contractors such as Lockheed Martin Corp. and Raytheon Co. fell after President Obama defeated Romney, who had proposed boosting military spending. Lockheed, the world’s biggest defense company, dropped 3.9 percent to $91.15. Northrop Grumman Corp. fell 4.6 percent to $66.70.

HCA Holdings Inc. and other hospitals will get more paying customers while insurers like UnitedHealth Group Inc. will see profits squeezed as President Obama moves to preserve the health-care overhaul he championed.

Obama’s re-election sent HCA, the largest for-profit hospital company, up 9.4 percent to $33.85 while Community Health Systems Inc. and Tenet Healthcare Corp. also saw gains on prospects for millions of newly insured patients being added to their admission rolls.

UnitedHealth, the largest U.S. medical insurer, fell 3.8 percent to $54.26 and WellPoint Inc., Humana Inc. and Aetna Inc. also saw declines as that industry faces profit limits and new taxes to help pay for the coverage expansion.

Smith & Wesson Holding Corp. climbed 9.6 percent to $10.37.

Investors are wagering that more Americans will buy guns after the win by Obama, who said last month he would consider reintroducing a ban on civilian purchases of military-style assault weapons.

Apple sank 3.8 percent to $558. The world’s largest company by market value hasn’t been able to keep up with demand for the latest version of the iPhone, which accounts for about two- thirds of the company’s profit. Terry Gou, the chairman of iPhone-manufacturer Foxconn Technology Group, said today that its assembly plants are “falling short” of demand.

Time Warner Inc. rallied 4.2 percent to $44.91. The media company that owns HBO and the Batman film franchise reported third-quarter profit that topped analysts’ estimates after making gains in cable-network revenue.

 

Have a wonderful weekend everyone.

Be magnificent!

 

He whom I have searched for has come to meet me,

and he who calls me Other has become me!

Kabir, 1440-1518

As ever,

Carolann

 

Never believe anything until it has been officially denied.

-Claud Cockburn, 1904-1981

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:

Our Lives Are Marked by Trees

-by Laura Sharp Wilson

As a child, I remember a chestnut tree, during fall, littered below with yellow leaves and the prickly green chestnut shells.  My best friend and I would scurry under, obsessively stomping the shells to scoop out the glorious smooth, brown chestnut within.

During the early years of my marriage, there was a black locust tree that loomed over our hilltop backyard in western Maryland.  I was so happy to see that huge dark, gnarly tree every morning.

A divine hundred-year old Gravenstein apple tree graced our backyard in Olympia, Washington.  In the spring its profusion of white blossoms made me feel like I had died and gone to heaven.  In late summer the bounty of apples were made into applesauce, composted, or given to neighbors and the local food bank.  We recently moved away from that house, and I really miss that tree.

I think of a the tree in Kalaloch, Washington, that straddles a stream running to the ocean.  The rush of water created an empty space under the roots, and the tree appeared to hover across the small river.  On a recent stop in the sleepy town of Heber City, Utah, I saw the largest willow tree.  Planted on  a small front yard, it was like an explosion.  I am thankful for the fluttering aspens that block the view of the parking lot across the street from my current home in Salt Lake City.

As I am marked by the living, I am marked by the ghosts of trees.  I imagine what once was on the field of cement behind a local school.  The clear-cuts that appear repeatedly on the drive to Olympic National Park are wearisome.  The logging trucks that rattle down the highways of the Pacific Northwest do not simply transport a load, but a bounty of old souls. –from Speak for the Trees, Andria Friesen.

Trees serve as homes for visiting devas who do not manifest in earthly bodies, but live in the fibers of the trunks and larger branches of the trees, feed from the leaves and communicate through the tree itself.  Some are permanently stationed as guardians of sacred places.  –Hindu Reva Shastra.

 

On this day in 2001, Michael Bloomberg was elected mayor of New York City. -Steven Russolillo, WSJ, 11/06/2012.

And also on this day in…

1812 – The first winter snow falls on the French Army as Napoleon Bonaparte retreats from Moscow.

1814 – Adolphe Sax, saxophone inventor, was born.

1860 – Abraham Lincoln is elected 16th President of the United States.

1917 – British victory at Passchendaele.

1946 – Sally Field, actor was born.

1962 – U.S. condemns Apartheid.

One thing you can’t recycle is wasted time.

 

photos of the day

November 6, 2012

A couple stroll past autumnal trees on a sunny autumn afternoon in a park in Vienna.

Heinz-Peter Bader/Reuters

A shopper shows off South Africa’s new banknotes, which features an image of former president Nelson Mandela on the front and images of the country’s ‘Big Five’ wild animals on the reverse, as they go into official circulation in Pretoria, South Africa.

Siphiwe Sibeko/Reuters

 

Market Closes for November 6th, 2012:

 

Market  Index	Close	Change
Dow  Jones	13245.68	+133.24    +1.02%
S&P 500	1428.39	+11.13    +0.79%
NASDAQ	3011.933	+12.270    +0.41%
TSX	12361.20	+8.42
		+0.07%

International Markets

Market  Index	Close	Change
NIKKEI	8975.15	-32.29
		-0.36%
HANG  SENG	21944.43	-61.97
		-0.28%
SENSEX	18817.38	+54.51
		+0.29%
FTSE 100	5884.90	+45.84
		+0.79%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.805	1.758
CND.   30 Year Bond	2.385	2.348
U.S.   10 Year Bond	1.7507	1.6771
U.S.   30 Year Bond	2.9203	2.8659

Currencies

BOC Close	Today	Previous
Canadian $	0.99228	0.99642
US   $	1.00778	1.00360
Euro Rate  1 Euro=		Inverse
Canadian   $	1.27081	0.78690
US  $	1.28070	0.78083

Commodities

Gold	Close	Previous
London Gold   Fix	1716.50	1684.60
Oil	Close	Previous
WTI Crude Future	88.71	85.65
BRENT	111.61	108.79

Market Commentary:

Canada

By Eric Lam

Nov. 6 (Bloomberg) — Canadian stocks advanced, halting a two-day slump, as commodities gained and U.S. voters headed to the polls to elect a president.

Imperial Oil Ltd. rose 1.1 percent as one of its refineries resumed normal operations following maintenance. Atlantic Power Corp. slumped 11 percent after reporting a wider third-quarter loss than estimated.

The Standard & Poor’s/TSX Composite Index rose 8.42 points, or 0.1 percent, to 12,361.20 in Toronto. The benchmark Canadian equity gauge is up 3.4 percent this year.

“It’s the pause before the U.S. election,” said Robert Sneddon, president of Castlemoore Inc. in Oakville, Ontario.

“Whether Romney wins or Obama wins, people are realizing it’s going to be a slow-growth environment. The leader is going to be leading with a slow pace. The market has its trajectory and today is a detour on the way.”

U.S. voters today will choose between incumbent Barack Obama and Republican challenger Mitt Romney for their next president. The winner will face a so-called fiscal cliff of $607 billion in automatic tax increases and spending cuts scheduled to take effect at the beginning of 2013 unless Congress can reach a budget compromise.

Raw materials companies led gains on the S&P/TSX Materials Index, rising 1 percent as gold, crude and copper advanced.

Barrick Gold Corp. advanced 0.8 percent to C$35.28 and Yamana Gold Inc. increased 2.7 percent to C$19.57 as the price of the metal rose the most in almost two months. Gold for December delivery added 1.9 percent to settle at $1,715 an ounce in New York.

Teck Resources Ltd., Canada’s largest integrated miner, added 2 percent to C$33.53. Copper for December delivery posted the biggest gain in almost three weeks, adding 1 percent to settle at $3.506 a pound in New York.

Imperial Oil climbed 1.1 percent to C$45.91 after the company reported its Strathcona refinery is working normally after undergoing maintenance.

Canadian Natural Resources Ltd. rose 1.1 percent to C$30.20 as crude climbed amid forecasts U.S. gasoline supplies dropped after Hurricane Sandy. Crude for December delivery rose 3.6 percent to settle at $88.71 a barrel in New York, a two-week high.

Atlantic Power, which holds indirect interests in power plants in the U.S., tumbled 11 percent to C$13.20, for its biggest loss since November 2008. In its third-quarter results yesterday, the company reiterated that its Auburndale and Lake plants will remain weak after power purchase agreements expire in 2013.

Jeremy Rosenfield, analyst with Desjardins Capital Markets, cut his rating on Atlantic Power to hold from buy while lowering his price target to C$16 from C$17.50.

“The shares are likely to remain range-bound in the near term until the company can fully elaborate on the next steps for its Auburndale and Lake assets,” he said in a note to clients.

Penn West Petroleum Ltd. fell 3.5 percent to C$11.19, the lowest in more than three years, after announcing the departure of four executives. Chief Operating Officer Hilary Foulkes, Senior Vice President Thane Jensen and two other vice presidents have left, effective immediately, the company said.

Petaquilla Minerals Ltd., the operator of a gold mine in Panama, plunged 23 percent to 50 Canadian cents for its biggest loss since 2003, after Inmet Mining Corp. said its C$148.4 million ($149.2 million) offer for the company has expired.

US

By Rita Nazareth and Adria Cimino

Nov. 6 (Bloomberg) — U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for a second straight day, as American voters went to the polls to pick a president.

Hewlett-Packard Co. and United Technologies Corp. added at least 2.6 percent to pace gains among the biggest companies.

Computer Sciences Corp., the manager of networks for NASA, surged 17 percent as a cost-cutting program helped boost its profit forecast. Express Scripts Holding Co., the largest U.S. pharmacy benefits manager, plunged 12 percent after saying analysts’ profit estimates for 2013 were “overly aggressive.”

The S&P 500 rose 0.8 percent to 1,428.39 at 4 p.m. in New York. The Dow Jones Industrial Average added 133.24 points, or 1 percent, to 13,245.68. Volume for exchange-listed stocks in the U.S. was 5.9 billion shares, or about in line with the three- month average, according to data compiled by Bloomberg.

“We’re moving closer to a definition on the election front,” said Mark Luschini, who helps manage $54 billion as chief investment strategist for Philadelphia-based Janney Montgomery Scott LLC. “It’s offering investors reason to say: we move from the unknown category regardless of the outcome.”

U.S. voters decide today between giving President Barack Obama another four years in office or replacing him with Republican challenger Mitt Romney. The next president will need to address a so-called fiscal cliff of more than $600 billion in tax increases and spending cuts that take effect in 2013 unless Congress can reach a budget compromise.

If history is any guide, today’s gain in stocks may be wiped out tomorrow. While the S&P 500 has risen an average 0.9 percent on presidential election days since 1984, the index had positive returns in only two of seven times on the following day, according to data compiled by Bespoke Investment Group. On average, the S&P 500 has declined 0.9 percent on the day after the polls, the data showed.

The options market is implying about a 2 percent move up or down in the S&P 500 over the next four trading days, according to Susquehanna Financial Group LLLP’s head of derivatives strategy Trevor Mottl. That’s equivalent to an even-odds range of 1,389 to 1,445 for the close on Nov. 9 based on options prices as of yesterday, he wrote today in a note to clients.

Nine out of 10 groups in the S&P 500 rose today as energy, financial and industrial shares gained more than 1 percent. The Morgan Stanley Cyclical Index of companies most-dependent on economic growth increased 1.5 percent to the highest level since March. Hewlett-Packard rallied 2.8 percent to $14.40. United Technologies added 2.7 percent to $79.97.

Computer Sciences jumped 17 percent to $36.80. The company has cut jobs and worked to better manage its contracts, helping boost cash flow. Computer Sciences said today that it continues to reshuffle operations. That includes divesting “non-core assets such as a smaller business in Italy,” the company said.

Chipotle Mexican Grill Inc. added 5.5 percent to $279.69.

The burrito chain criticized by hedge fund manager David Einhorn was raised to buy from neutral at Bank of America Corp.

Lam Research Corp. gained 2.3 percent to $37.69. The chip- equipment company was raised to positive from neutral at Susquehanna Financial Group by equity analyst Mehdi Hosseini.

The 12-month share-price estimate is $48.

EOG Resources Inc. climbed 4.4 percent to $121.98. The largest oil producer in Texas’ Eagle Ford shale reported profit that exceeded estimates and boosted its output forecast.

Express Scripts plunged 12 percent to $55.15. A “weak business climate and the unemployment outlook” may lead to a loss of members, depressed drug utilization and “increased client demands and expectations,” Express Scripts said in a statement.

Vivus Inc. slumped 21 percent to $11.82. The maker of the recently approved obesity drug Qsymia reported a larger third- quarter loss than analysts expected. The company told investors today that some patients are abandoning prescriptions at the pharmacy on discovering they must pay a large portion of the cost out-of-pocket, Andrew Berens, senior health-care analyst with Bloomberg Industries, said in a telephone interview.

Fossil Inc. tumbled 10 percent to $84.24. The maker of the namesake watch brand reported sales that trailed analysts’ estimates.

THQ Inc. dropped 50 percent to $1.50. The money-losing video-game company posted a loss and announced it hired Centerview Partners LLC to evaluate its options and raise cash.

Zillow Inc. retreated 18 percent to $28.15. The operator of the largest real estate information website posted a record decline after forecasting fourth-quarter revenue that trailed analysts’ estimates.

The cost of health-care options jumped to a two-year high versus the rest of the U.S. equity market, pushed up by bets that a victory for Romney would endanger President Obama’s industry overhaul.

Implied volatility, a gauge of option prices, for contacts closest to the Health Care Select Sector SPDR Fund jumped 23 percent since hitting a low on Sept. 21 to 14.37 yesterday, according to three-month data compiled by Bloomberg. The measure reached its highest level since May 2010 relative to the SPDR S&P 500 ETF Trust two weeks ago. The U.S. exchange-traded fund, tracking companies such as Aetna Inc. and WellPoint Inc., has climbed 16 percent this year.

Romney has said he has the option of issuing waivers to states allowing them to get out of the Affordable Care Act’s requirements. The law, championed by Obama, is designed to expand insurance coverage to at least 30 million people. A repeal effort would confront hospitals and insurers that have already begun preparing for changes in the health-care system that mostly kick in by 2014.

The health-care ETF “will go up if Romney wins because the market considers him better for the sector,” Les Funtleyder, a fund manager focused on the health-care industry at New York- based Poliwogg, said yesterday in a phone interview. “If Obama wins, it’s going to be status quo.”

The Affordable Care Act marks the biggest change to the U.S. health system since Medicare and Medicaid were established in 1965. Romney said in June that he disagreed with the Supreme Court’s decision to uphold the constitutionality of the plan and that what the justices failed to do he would “do on my first day if elected president of the United States.”

Have a wonderful evening everyone.

 

Be magnificent!

 

Meditation can take place when you are sitting in a bus,

or walking in the woods full of light and shadows,

or listening to the singing of the birds,

or looking at the face of your wife or child.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

If your success is not on your own terms, if it

looks good to the world but does not feel good

in your heart, it is not success at all.

-Anna Quindlen, 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,

I was completing a 30^th page report during the past two evenings which I had to submit for the October 31^st deadline for a CSI designation I am completing, so I was unable to send my nightly newsletter, but it’s done yipee!

Tangents:

November, Latin novem, “nine”:  The ninth month in the ancient Roman calendar, when the year began in March, but now the eleventh.  The old Dutch name was Slaghtmaand, “slaughter month”, the time when the beasts were slain and salted down for winter use.  The Anglo-Saxon name was similar, as Blotmonath, literally “blood month”.  Another Saxon name was Windmonath, “wind month” , when fishermen beached their boats and stopped fishing until the next spring.  The equivalent in the French Revolutionary calendar was Brumaire, “mist month”, corresponding to the period from 23 October to 21 November. –from Brewer’s Dictionary of Phrase & Fable.

On this day in…

79 – The city of Pompeii is buried by eruption of Mt. Vesuvius.

1512 – Michelangelo’s painting on the Sistine Chapel ceiling is exhibited for the first time.

1869 – Louis Riel seizes Fort Garry, Winnipeg, during the Red River Rebellion.

1923 – Goodyear Tire and Rubber Company buys the rights to manufacture Zeppelin dirigibles.

1967 – The first issue of Rolling Stone hits the streets.
Most of the shadows of our life are caused by standing in our sunshine. – Ralph Waldo Emerson.

photos of the day

November 1, 2012

A woman walks in high water near the Rialto Bridge in Venice, Italy. High tides have flooded Venice, leading Venetians and tourists to don high boots and use wooden walkways to cross St. Mark’s Square and other areas underwater. Flooding is common this time of year. Today’s level, which reached a peak of 55 inches, was below the 63 inches recorded four years ago in the worst flooding in decades.

The remnants of a roller coaster sit in the surf three days after Hurricane Sandy came ashore in Seaside Heights, N.J. At least 82 people in North America died in the superstorm, which ravaged the northeastern United States on Monday night.

Steve Nesius/Reuters

 

Market Closes for November 1st, 2012:

 

Market  Index	Close	Change
Dow  Jones	13232.62	+136.16    +1.04%
S&P 500	1427.59	+15.43    +1.09%
NASDAQ	3020.061	+42.827    +1.44%
TSX	12499.76	+76.85
		+0.62%

International Markets

Market  Index	Close	Change
NIKKEI	8946.87	+18.58
		+0.21%
HANG  SENG	21821.87	+180.05
		+0.83%
SENSEX	18561.70	+56.32
		+0.30%
FTSE 100	5861.92	+79.22
		+1.37%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.789	1.785
CND.   30 Year Bond	2.380	2.380
U.S.   10 Year Bond	1.7242	1.6901
U.S.   30 Year Bond	2.9010	2.8579

Currencies

BOC Close	Today	Previous
Canadian $	0.99651	1.00005
US   $	1.00350	0.99995
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28996	0.77522
US  $	1.29445	0.77253

Commodities

Gold	Close	Previous
London Gold   Fix	1714.93	1720.55
Oil	Close	Previous
WTI Crude Future	87.09	86.24
BRENT	109.68	110.41

Market Commentary:

Canada

By Eric Lam

Nov. 1 (Bloomberg) — Canadian stocks rose, sending the benchmark index to the highest level since April, as better- than-estimated results from Suncor Energy Inc. and Catamaran Corp. offset declines at Barrick Gold Corp.

Suncor, Canada’s largest energy company, jumped 3.5 percent after posting third-quarter profit that topped analysts’ forecasts. Barrick slumped 9.5 percent, its biggest loss in more than three years, after earnings and sales missed estimates.

The Standard & Poor’s/TSX Composite Index added 76.85 points, or 0.6 percent, to 12,499.76 in Toronto, advancing for a sixth straight session. The benchmark Canadian equity gauge is up 4.6 percent this year.

“Barrick’s report is symptomatic of a trend we see across the gold companies: Mines are getting more expensive to build,” Keith McLean, managing partner with GMP Investment Management LP, said from Toronto. His firm manages about C$650 million.

“Suncor is the other side of the same coin, sliding investment capital down to preserve and distribute cash flow. Do we see dividend bumps and share buybacks in the future? We do and it’s something Suncor’s board should consider.”

Energy companies and banks contributed most to gains on the Toronto Stock Exchange as eight of 10 industries advanced. The S&P/TSX Health Care Index soared 3.9 percent.

Investors also took cues from the latest U.S. manufacturing data, which grew at a faster pace than expected in October, McLean said.

The Institute for Supply Management’s factory index climbed to 51.7 last month, the highest since May, from 51.5 in September. Economists estimated 51 for October, according to the median estimate in a Bloomberg survey. A reading of 50 or higher indicates growth.

Suncor jumped 3.5 percent to C$34.68, its highest close since March. The company reported third-quarter profit of C$1.56 billion ($1.56 billion), up 21 percent compared with C$1.29 billion a year ago. Per-share profit of C$1.01 beat the 70-cent average of five analysts’ estimates compiled by Bloomberg.

Barrick, the world’s biggest producer of the precious metal, plunged 9.5 percent to C$36.56 for the biggest percentage decline since February 2009.

Adjusted earnings per share were 85 cents, trailing the 99- cent average of 23 estimates according to a Bloomberg survey.

Barrick earnings have disappointed for four consecutive quarters as it struggles to contain costs.

Catamaran, which processes drug prescriptions in the U.S., soared 8.7 percent to C$51, its largest advance since April. The company reported adjusted earnings per share of 25 cents, ahead of analysts’ estimates.

The company has also won a deal to manage pharmacy benefits for 180,000 Target Corp. workers, the largest deal since Catamaran’s $5 billion merger with Catalyst Health Solutions Inc. in July.

Research In Motion Ltd. surged 10 percent to C$8.68, its biggest gain since Sept. 27. The company said more than 50 wireless carriers, including BCE Inc., have begun testing BlackBerry 10 devices.

Cott Corp., the third-best performing stock on the S&P/TSX Consumer Staples Index this year, jumped 6.4 percent to C$8.12 after the non-alcoholic drinks maker announced a new quarterly dividend of six Canadian cents a share.

Stantec Inc., an engineering and architectural services company, climbed 8.4 percent to C$37.29 after reporting third- quarter earnings of 74 Canadian cents a share, ahead of 66 cents estimated by analysts.

Cameco Corp., the world’s third-largest uranium miner, slumped 5 percent to C$18.40 after cutting its 2018 production target by 10 percent. A close at that price would be its biggest decline since March 2011.

US

By Lu Wang and Inyoung Hwang

Nov. 1 (Bloomberg) — U.S. stocks rose, giving benchmark indexes their biggest advance in seven weeks, as reports on employment and manufacturing topped estimates while consumer confidence climbed in October to a more than four-year high.

Eight of 10 groups in the Standard & Poor’s 500 Index advanced. Caterpillar Inc., Microsoft Corp. and Bank of America Corp. climbed more than 3.4 percent to lead gains in the Dow Jones Industrial Average. Visa Inc. rose 3.7 percent after reporting fourth-quarter profit that beat analysts’ estimates.

Macy’s Inc. climbed 6.4 percent after raising its sales forecast. Pfizer Inc. lost 1.3 percent after the world’s largest drugmaker narrowed its forecast for 2012.

The S&P 500 gained 1.1 percent to 1,427.59 in New York. The Dow advanced 136.16 points, or 1 percent, to 13,232.62. Both gauges posted their biggest advance since Sept. 13. Volume for exchange-listed stocks in the U.S. was about 6.8 billion shares, or 14 percent above the three-month average.

“One of the major concerns of the market is a deceleration of growth,” Mark Freeman, who oversees about $14 billion as chief investment officer at Westwood Holdings Group Inc. in Dallas, said in a phone interview. “The data is actually saying that deceleration has basically stopped and the growth rate has stabilized. When we look at fundamentals, the economy still supports earnings growth going into next year.”

Companies expanded payrolls in October by the most in eight months, the Institute for Supply Management’s U.S. factory index rose to 51.7 in October from 51.5 a month earlier, and the Conference Board’s consumer sentiment index increased to 72.2, the highest since February 2008, reports showed today. A Chinese purchasing manager’s index climbed to 50.2 in October, a sign economic growth is picking up after a seven-quarter slowdown.

Tomorrow’s monthly employment report from the Labor Department may provide more clues for investors to gauge the strength of the economy before the presidential election.

Payrolls increased by 125,000 workers in October and the jobless rate rose to 7.9 percent, according to the median forecasts of economists surveyed by Bloomberg.

The jobs report is the last before the Nov. 6 presidential election, and may help sway voters trying to decide between giving President Barack Obama another four years in office or to change course with Republican challenger Mitt Romney.

The S&P 500 fell 2 percent in October, ending four months of gains, as concern grew that slowing economic growth will curb earnings. The benchmark index rallied 15 percent from a June low to a four-year high on Sept. 14 as central banks around the world stepped up stimulus to boost the economy. The S&P 500 reversed a loss in the final hour of trading yesterday as equity markets reopened following a two-day shutdown because of Hurricane Sandy.

Forty-one companies in the S&P 500 post results today, according to data compiled by Bloomberg. Earnings have exceeded projections at 72 percent of companies that have released third- quarter results, while sales have trailed estimates at 59 percent of firms, Bloomberg data show.

Companies whose earnings are most tied to economic swings rose the most among 10 S&P 500 industry groups as commodity, technology and industrial shares climbed more than 1.8 percent.

Intel Corp. added 2.9 percent to $22.26, while Microsoft jumped 3.4 percent to $29.52. Caterpillar Inc., the largest builder of construction and mining machinery, rose 3.4 percent to $87.65.

The Morgan Stanley Cyclical Index climbed 2.6 percent, the most since Sept. 6. Bank of America rallied 4.5 percent to $9.74, while JPMorgan Chase & Co. increased 2.8 percent to $42.84. D.R. Horton Inc. gained 4.2 percent to $21.84, helping drive an S&P measure of homebuilders up 2.6 percent.

Visa advanced 3.7 percent to $143.88. The world’s biggest payments network reported an 89 percent increase in quarterly net income to $1.66 billion. Adjusted profit per share was $1.54, beating the $1.50 average analyst estimate.

Macy’s climbed 6.4 percent to $40.52. The second-biggest U.S. department-store chain boosted its forecast for same-store sales in the second half of the year, to a 4 percent gain compared with the year-ago period. The company had previously estimated an increase of 3.7 percent.

Ross Stores Inc. and Target Corp. posted October same-store sales that trailed analysts’ estimates as consumers held back on discretionary spending ahead of the U.S. presidential election and Hurricane Sandy diverted some traffic.

Ross Stores dropped 6.3 percent to $57.13. The operator of apparel and home accessories stores said sales rose 4 percent, falling short of the average projection for a 4.3 percent gain from analysts surveyed by researcher Retail Metrics Inc.

Target slipped 1.3 percent to $62.94. The second-biggest U.S. discount retailer posted a 2.4 percent increase in same- store sales, missing the 2.9 percent estimate.

Abercrombie & Fitch Co. climbed 8.7 percent to $33.23. The teen-clothing retailer didn’t update its sales figures. The absence of pre-announcement “may mean more limited downside risk, and could provide relief” to the stock, Roxanne Meyer, an analyst with UBS AG, wrote in a note to clients.

JDA Software Group Inc. rallied 17 percent to $44.76, the highest level since it went public in 1996. RedPrairie Corp., backed by private-equity firm New Mountain Capital LLC, will pay $45 a share for the Scottsdale, Arizona-based company in a $1.9 billion deal that merges two providers of software for managing corporate supply chains.

VeriSign Inc. jumped 11 percent to $41.15. The operator of Web domain name registries said it expects to continue to run registry for .com names, as regulators review its contract for that business. The Department of Justice has “substantially concluded” its own review process while the Commerce Department may extend its evaluation beyond Nov. 30, the company said.

Pfizer slipped 1.3 percent to $24.55 after the drugmaker narrowed its full-year adjusted earnings guidance to $2.14 a share to $2.17 a share, from $2.12 to $2.22 a share. The company said it was buying as much as $10 billion in shares.

Exelon Corp. dropped 6.2 percent to $33.58. The largest U.S. power company by 2011 sales said it may cut its dividend for the first time to maintain an investment grade credit rating as power prices decline.

 

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Variety is the first principle  of life.

What makes us formed beings?

Differentiation.

Perfect balance will be destruction.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

Emergencies have always been necessary to progress.

It was darkness which produced the lamp.  It was fog

that produced the compass.  It was hunger that drove

us to exploration.  And it took a depression to show

us the value of a job.

-Victor Hugo, 1802-1885

 

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