Month: March 2013

Dear Friends,

Tangents: Full Moon night!

Third night of Passover tonight…Easter weekend ahead of us.

 

Now the green blade riseth,

from the buried grain,

Wheat that in dark earth

many days has lain;

Love lives again,

that with the dead has been:

Love is come again,

like wheat that springeth green.

-J.M. C. Crum

Exciting news in the culinary world today:  Abbotsford farmer Bill Stewart has produced B.C.’s first Périgord truffle!  Let’s hope his success continues.

Business is a combination of war and sport. –Andre Maurois

Photos of the Day – March 27th, 2013

Toll collector Marilyn Alvarado (c.) leaves her tollbooth, as the last human toll collector, at the Golden Gate Bridge toll plaza in San Francisco, California. The Golden Gate Bridge will convert from manned tollbooths to a full electronic tolling system Stephen Lam/Reuters

Christie’s scientific specialist James Hyslop poses for photographs with a sub-fossilized pre-17th century Elephant Bird egg at the auction house’s premises in London. The extinct Elephant Bird species was native to Madagascar and among the heaviest known birds. Matt Dunham/AP

Market Closes for March 27^th, 2013

Market  Index	Close	Change
Dow  Jones	14526.16	-33.49    -0.23%
S&P 500	1562.85	-0.92    -0.06%
NASDAQ	3256.522	+4.039    +0.12%
TSX	12699.65	-6.73
		-0.05%

International Markets

Market  Index	Close	Change
NIKKEI	12493.79	+22.17
		+0.18%
HANG  SENG	22464.82	+153.74
		+0.69%
SENSEX	18704.53	+23.11
		+0.12%
FTSE 100	6387.56	-11.81
		-0.18%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.756	1.817
CND.   30 Year Bond	2.490	2.537
U.S.   10 Year Bond	1.8454	1.9094
U.S.   30 Year Bond	3.0879	3.1427

Currencies

BOC Close	Today	Previous
Canadian $	0.98396	0.98389
US   $	1.01630	1.01637
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29859	0.77006
US  $	1.27776	0.78262

Commodities

Gold	Close	Previous
London Gold   Fix	1604.70	1599.59
Oil	Close	Previous
WTI Crude Future	96.58	96.34
BRENT	110.37	110.18

Market Commentary:

Canada

By Lindsey Rupp

March 27 (Bloomberg) — Canadian stocks fell, extending a monthly decline, as banks and energy producers slumped amid growing concern over Europe’s debt crisis.

Financial stocks retreated as Toronto-Dominion Bank and Royal Bank of Canada fell at least 0.9 percent. AGF Management Ltd. slipped 5.7 percent after the asset manager received a notice from the national tax collector. Niko Resources Ltd. rose 10 percent after saying it’s in negotiations to sell C$157 million ($154 million) worth of assets. Alacer Gold Corp. and Centerra Gold Inc. added more than 3.6 percent as gold prices increased for the first time in four days.

The Standard & Poor’s/TSX Composite Index fell 6.73 points, or 0.1 percent, to 12,699.65 at 4 p.m. in Toronto. The S&P/TSX lost as much as 0.7 percent earlier in the day and is down 1 percent in March. Trading volume was 4.3 percent lower than the 30-day average.

“Fears out of Europe are containing enthusiasm, and if you’re afraid of Europe then gold is the place to be,” Barry Schwartz, fund manager with Baskin Financial Services who helps manage about C$500 million, said from Toronto.

The Institute of International Finance said banks in Portugal, Spain and Italy may come under funding pressure after a deal yesterday in Cyprus rescued the island’s financial system at the expense of bank creditors.

European governments and the International Monetary Fund agreed earlier this week to lend Cyprus 10 billion euros ($13 billion) as long as the country liquidated its second-largest bank and forced losses on bank bondholders and deposits of more than 100,000 euros.

Canadian consumer prices rose 1.2 percent in February, the fastest monthly pace since 1991, on a spike in gasoline and clothing prices. The figure remains below the central bank’s 2 percent target.

Financial shares contributed most to the S&P/TSX decline, retreating 0.7 percent as a group. Royal Bank of Canada, the country’s largest lender, slipped 1.3 percent to C$60.71 as the firm announced plans to issue more U.S. covered bonds. Toronto Dominion fell 0.9 percent to C$83.95.

AGF Management declined 5.7 percent to C$10.84. The asset manager said the Canadian Revenue Agency contacted the firm about the transfer pricing and allocation of income between a Canadian and foreign subsidiary within AGF Management. The CRA could reassess tax years 2005 through 2007. AGF Management said it plans to rebut any formal assessment the agency may request.

Energy producers pared losses as oil rose to a five-week high after a government report showed that U.S. refineries boosted operating rates. Crude tumbled as much as 0.8 percent earlier in the day, on a report that U.S. inventories rose.

Oil producer Suncor Energy Inc. dropped 1.1 percent to C$30.40. Crude pipeline operator Enbridge Inc. slid 0.6 percent to C$47.

Niko Resources added 10 percent to C$5.82. The oil and natural gas explorer with operations in Bangladesh, Pakistan and India, is in “advanced negotiations” with two potential buyers for undisclosed assets, the company said today in a statement.

It plans to complete the agreements by the end of next month.

Raw-materials producers climbed 1.1 percent as a group, as gold advanced 0.6 percent to settle at $1,607.20 an ounce. The metal has risen 1.8 percent in March as Europe’s debt woes spurred demand for gold as a haven.

Alacer Gold gained 5.6 percent to C$4.16 and Centerra Gold rose 3.6 percent to C$6.27. Barrick Gold Corp., the largest gold producer in the world, added 2 percent to C$29.90.

US

By Sarah Pringle

March 27 (Bloomberg) — U.S. stocks fell, after the Standard & Poor’s 500 Index yesterday rallied toward a record high, amid concern over Europe’s debt crisis and as pending American home sales slipped in February.

Banks fell as JPMorgan Chase & Co. and Citigroup Inc. lost at least 0.8 percent. Cliffs Natural Resources Inc. tumbled 14 percent after Morgan Stanley downgraded the shares. Apple Inc. slumped 2 percent after Pacific Crest predicted it would miss revenue expectations. Humana Inc. and UnitedHealth Group Inc. rose at least 1.7 percent after the U.S. Medicare program was granted authority to raise insurers’ payments. AOL Inc. surged 8.4 percent after Barclays Plc lifted the company’s rating.

The S&P 500 dropped 0.1 percent to 1,562.85 at 4 p.m. in New York, paring an earlier decline of as much as 0.8 percent.

The Dow Jones Industrial Average fell 33.49 points, or 0.2 percent, to 14,526.16. About 5.2 billion shares changed hands on U.S. exchanges, 18 percent below the three-month average.

“When you have typically light days, the market can get pushed around a little bit more on nothing,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said in a telephone interview. His firm oversees $1.5 billion. “The market’s still poised to go up.”

The S&P 500 rallied yesterday to within two points of its record of 1,565.15 reached in October 2007, as orders for durable goods and home prices exceeded estimates. The benchmark gauge has traded above 1,560 on seven days since March 14, only to fall short of the record each time. The Dow climbed to another record yesterday, after first surpassing its 2007 all- time high on March 5.

The bull market in equities entered its fifth year this month as the S&P 500 more than doubled from its bottom in 2009, driven by an unprecedented three rounds of bond purchases by the Federal Reserve. The S&P 500 is up 9.6 percent for the year, and has gained 3.2 percent in March.

The Institute of International Finance said today banks in Portugal, Spain and Italy may come under funding pressure after a deal earlier this week in Cyprus rescued the island’s financial system at the expense of bank creditors.

European governments and the International Monetary Fund agreed Monday to lend Cyprus 10 billion euros ($13 billion) as long as the country liquidated its second-largest bank and forced losses on bank bondholders and deposits of more than 100,000 euros.

“I don’t think the bottom’s going to drop out, but it’s not that simple to just say, ‘Cyprus, where is it, who cares?’”

Robert Doll, chief equity strategist at Nuveen Asset Management LLC, said in an interview on Bloomberg TV’s “Surveillance” with Tom Keene and Scarlet Fu. He helps oversee $117 billion at the Chicago-based firm. “It took years for Europe to get into this mess. It will take years for Europe to get out.”

While the improving economy is driving the bull market in U.S. equities, Doll said gains may slow after the S&P 500 surged 130 percent since March 2009.

“We’re due for a rest and a rest doesn’t mean a big decline,” he said.

Fewer Americans signed contracts to purchase previously owned homes in February, indicating a pause in momentum for an industry that is helping power the economy. The index of pending home sales fell 0.4 percent to 104.8, the second-highest level since April 2010, after a revised 3.8 percent increase the prior month, the National Association of Realtors reported.

The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against claims, rose 3 percent to 13.15 today. The KBW Bank Index dropped 0.6 percent, as 18 of the gauge’s 24 members retreated. JPMorgan slid 1.8 percent to $47.77 and Citigroup lost 0.8 percent to $44.46, pacing declines among financial firms.

Cliffs Natural Resources plunged 14 percent, the most in the S&P 500, to $18.46. Morgan Stanley cut its recommendation on shares of the biggest U.S. iron-ore producer to underweight, the equivalent of sell, from equal weight. The company’s iron-ore business will be halved in the coming years because of increased supply in the Great Lakes area, analysts led by Evan Kurtz wrote in a note.

Separately, Credit Suisse Group AG cut its 12-month estimate on the share price to $10 from $20, while maintaining an underperform rating.

Apple slumped 2 percent to $452.08. Pacific Crest analyst Andy Hargreaves said the company may miss revenue expectations during the second and third quarters, due to “relatively soft” sales of large-screen iPads and iPhones. Apple shares have slumped 15 percent this year, sliding to their lowest price in more than 13 months on March 4.

Dollar General Corp. fell 2.4 percent to $50.95. The discount retailer said 30 million of its shares will be sold in an underwritten secondary public offering. The offer is by certain existing shareholders and no shares are being sold by the company, Goodlettsville, Tennessee-based Dollar General said in a statement.

Best Buy Co. dropped 2.4 percent to $22.15. S&P Capital IQ cut its rating on the electronics retailer to sell from hold.

Humana jumped 3 percent to $68.72 and UnitedHealth rose 1.7 percent to $56.62, after congressional researchers said the U.S. Medicare program has the authority to raise payments to insurers.

AOL, the Web publisher that owns the Huffington Post and TechCrunch, climbed 8.4 percent to $39.20. Barclays raised its rating on the company to overweight from equalweight, saying profit will increase faster than analysts’ estimates on cost- cutting and modest revenue growth.

Mattress Firm Holding Corp. rallied 12 percent to $34.77.

Raymond James equity analyst Budd Bugatch lifted his rating on the Houston-based retailer to outperform from market perform.

SAIC Inc. advanced 3.9 percent to $13.32 after the eighth- largest contractor to the U.S. government said late yesterday it will pay a special dividend of $1 per share. The company forecast full-year earnings of $1.16 to $1.33 a share.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

The whole universe is to us a writing of the Infinite in the language of the finite.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

Have no fear of perfection – you’ll never reach it.

-Salvador Dali, 1904-1989

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:

A word of caution in today’s Globe & Mail:

It’s not the years, it’s the noise

“Noise, not age, is the leading cause of hearing loss,” writes Jane Brody of The New York Times.  “Unless you take steps now to protect your ears, sooner or later many of you – and your children – will have difficulty understanding even ordinary speech.  Tens of millions of Americans, including 12 to 15 per cent  of school-age children, already have permanent hearing loss caused by the everyday noise that we take for granted as a fact of life.”  -Michael Kesterton, Globe & Mail, 03/26/13.

On March 26^th:

1874 – Poet Robert Frost was born.

1905 – Psychiatrist Victor Frankl was born.

1911 – Playwright Tennessee Williams was born.

1921 – the Bluenose was launched and still graces the Canadian dime.

1942 – Writer Erica Jong was born.

1944 – Singer Diana Ross was born,

1953 – Jonas Salk announced he had succeeded in developing a polio vaccine.

1979 – Israeli Prime Minister Menachem Begin and Egyptian President Anwar El-Sadat, signed a peace treaty at Camp David, ending 30 years of war.

1985 – Actor Keira Knightly was born.

True Strength is delicate.  – Louise Nevelson.

Photos of the Day – March 26th, 2013

Icicles hang from a statue in Trafalgar Square, central London, as the cold weather continues. The cold weather is predicted to continue for the upcoming days with freezing temperatures and high winds hitting many regions of Britain. Andrew Matthews/PA/AP

A street vendor waits for customers as she sells traditional Easter eggs at Prague’s Wenceslas Square, Czech Republic. Petr Josek/Reuters

Market Closes for March 26^th, 2013

Market  Index	Close	Change
Dow  Jones	14559.65	+111.90    +0.77%
S&P 500	1563.77	+12.08    +0.78%
NASDAQ	3252.483	+17.185    +0.53%
TSX	12706.38	+25.67
		+0.20%

International Markets

Market  Index	Close	Change
NIKKEI	12471.62	-74.84
		-0.60%
HANG  SENG	22311.08	+59.93
		+0.27%
SENSEX	18704.53	+23.11
		+0.12%
FTSE 100	6399.37	+20.99
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.817	1.816
CND.   30 Year Bond	2.537	2.531
U.S.   10 Year Bond	1.9094	1.9198
U.S.   30 Year Bond	3.1427	3.1484

Currencies

BOC Close	Today	Previous
Canadian $	0.98389	0.97901
US   $	1.01637	1.02144
Euro Rate  1 Euro=		Inverse
Canadian   $	1.30693	0.76515
US  $	1.28588	0.77768

Commodities

Gold	Close	Previous
London Gold   Fix	1599.59	1604.16
Oil	Close	Previous
WTI Crude Future	96.34	94.56
BRENT	110.18	109.17

Market Commentary:

Canada

By Lindsey Rupp and Eric Lam

March 26 (Bloomberg) — Canadian stocks erased losses as better-than-estimated U.S. data boosted energy shares and telecommunication providers rallied, offsetting a drop in gold producers.

Rogers Communications Inc. rose 1.7 percent after saying it will expand its LTE wireless Internet network. Canadian Natural Resources Ltd. and ARC Resources Ltd. added at least 0.5 percent as oil jumped to a five-week high. AuRico Gold Inc. fell the most in six months after the company wrote down the value of a mine. Barrick Gold Corp. slid 1.1 percent as gold slumped for a third day.

The Standard & Poor’s/TSX Composite Index rose 25.67 points, or 0.2 percent, to 12,706.38 at 4 p.m. in Toronto after falling as much as 0.2 percent. The S&P/TSX is up 2.2 percent this year. Trading volume was 26 percent lower than the 30-day average.

“To the extent we can see continued improvement in the U.S. economy, eventually the Canadian market will come along,” Laura Wallace, Toronto-based vice president and portfolio manager for Scotia Asset Management, said in a phone interview today. She helps manage about C$11 billion ($11 billion). “We need to see sustained recovery in the U.S., which will firm up commodity prices.”

U.S. economic data released today bolstered optimism about the world’s largest economy. Orders for durable goods climbed more than forecast in February and residential real estate prices increased in January by the most since 2006.

Telecommunication firms rose the most in the S&P/TSX, adding 1.3 percent as a group. Rogers Communications, Canada’s largest wireless carrier, rose 1.7 percent to C$51.43. The company said it would expand its high-speed cellular Internet system into 44 new markets this spring. BCE Inc., the nation’s biggest phone company, climbed 1.7 percent to C$47.31.

Energy shares advanced, as oil jumped 1.6 percent to $96.34, the highest settlement since Feb. 19. Canadian Natural Resources added 0.5 percent to C$33.08 and ARC Resources climbed 1 percent to C$26.63.

Just Energy Group Inc. rallied 9.9 percent to C$6.79 after its executive chairman said the natural gas and power supplier does not plan additional dividend cuts. The stock slid 14 percent over the previous four days.

“We recognize there are rumors in the market regarding a further dividend reduction,” Rebecca MacDonald said in a statement yesterday. “At this point we do not expect any further changes to our dividend payout.”

The Toronto-based company cut its quarterly dividend to 7 Canadian cents a share from 10 cents a share on Feb. 7.

Financial shares increased after Canada’s government said the country’s six largest banks are “systemically important” and need to set aside more capital. The Office of the Superintendent of Financial Institutions, the country’s banking regulator, said the banks will be subject to a surcharge equal to 1 percent of risk weighted capital by Jan. 1, 2016.

Each bank will also have to hold debt that can be converted to capital if it fails, reducing the need for a taxpayer-funded bailout. Canadian banks have been ranked the world’s soundest for the past five years by the World Economic Forum.

“Investors are giving banks the benefit of the doubt and reasonably so,” said John O’Connell, chief executive officer with Davis Rea Ltd., which manages about C$600 million, in Toronto. “It wasn’t a surprise. They’re clearly in great shape, so nobody’s really worried about these banks.”

Royal Bank of Canada, the nation’s largest lender, added 0.5 percent to C$61.48 and Toronto-Dominion Bank rose 0.6 percent to C$84.68.

Bank of Montreal, Canada’s fourth-largest bank, gained 0.8 percent to C$64.19 after the company raised its five-year mortgage rate to 3.09 percent. A reduction earlier this month drew criticism from Finance Minister Jim Flaherty. The bank’s 2.99 percent rate was a “limited time offer,” and expires March 28, the bank said in a statement today.

Raw-materials stocks fell 0.7 percent as a group, the only one of 10 industries in the S&P/TSX to retreat. Gold futures for June delivery declined 0.6 percent to settle at $1,597.30 an ounce. The metal has lost 4.7 percent this year.

AuRico Gold slid 7.8 percent to C$6.23 for its biggest slide since September after the company wrote down the value of its El Chanate mine in Mexico by $127 million. Fourth-quarter revenue of $63.1 million was lower than the $71.3 million average of three analysts’ estimates compiled by Bloomberg.

Barrick Gold, the world’s largest gold producer, lost 1.1 percent to C$29.32. Founder and Co-Chairman Peter Munk said yesterday he and his directors have been considering “new leadership” for the board.

US

By Sarah Pringle

March 26 (Bloomberg) — The Standard & Poor’s 500 Index rebounded to within two points of its record after orders for U.S. durable goods climbed more than forecast in February and home prices increased the most since June 2006.

Monsanto Co. jumped 4.4 percent as the company and DuPont Co. agreed to dismiss their respective antitrust and soybean patent lawsuits. Netflix climbed 5.4 percent after Pacific Crest Securities LLC raised its price target on the company. Boeing Co. added 2.1 percent after an appeals court upheld the dismissal of a lawsuit. Apparel retailers retreated, as Gap Inc. and Macy’s Inc. lost more than 0.9 percent.

The S&P 500 added 0.8 percent to 1,563.77 at 4 p.m. in New York, after the equity benchmark fell 0.3 percent yesterday. The Dow Jones Industrial Average rose 111.90 points, or 0.8 percent, to 14,559.65, reaching another record. About 5.2 billion shares changed hands on U.S. exchanges today, 18 percent below the three-month average.

“The data continues to be pretty good out of the U.S., even though we had some bad news out of Europe over the past few days,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, which oversees $170 billion, said by phone. “Housing is a huge part of the economic recovery story and if housing prices rise, people feel better about their homes and generally more confident.”

The S&P 500 yesterday came within one point of its record of 1,565.15 reached in October 2007, before retreating as the bailout of Cyprus spurred concern bank deposits in other euro- area nations may be subject to levies to pay for rescues in the future. The benchmark gauge has surpassed the 1,560 level six times since March 14, only to fall short of the record each time. The Dow first surpassing its 2007 all-time high on March 5.

The bull market in equities entered its fifth year this month as the S&P 500 more than doubled from its bottom in 2009, driven by an unprecedented three rounds of bond purchases by the Federal Reserve.

Equities rose today as residential real estate prices increased in January by the most since June 2006, according to the S&P/Case-Shiller index released today. Orders for U.S. durable goods climbed more than forecast in February, propelled by automobiles and a rebound in commercial aircraft, a Commerce Department report showed.

Consumer confidence slumped more than forecast this month as Washington’s budget battle soured Americans’ views of the economic outlook. The consumer confidence index dropped to 59.7 from a revised three-month high of 68 in February, data from the New York-based Conference Board showed today. New-home sales declined 4.6 percent, worse than the 3.9 percent median estimate, another report showed.

“We like to see what consumers do rather than what they say,” Brad Sorensen, director of market and sector analysis at Charles Schwab Corp., said in a phone interview. The San Francisco-based firm has $2.04 trillion in client assets. “They may say they’re less confident, but does that translate into their spending? So far we haven’t seen that. Retail sales have held up pretty well.”

The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines, fell 7.1 percent to 12.77. The gauge has tumbled 29 percent for the year.

Health-care companies, energy and utility shares advanced the most, adding at least 1 percent. Intel Corp. rose 2.9 percent to $21.77 and Hewlett-Packard Co. jumped 2.3 percent to $23.64, for the biggest gains in the Dow. American Express Co. climbed 1.6 percent to a record $67.17, while Pfizer Inc. added 1.6 percent to $28.60, the highest level since 2005.

Monsanto rallied 4.4 percent to $103.79. The company will dismiss its claim that DuPont infringed patents for Roundup Ready soybeans, setting aside a $1 billion jury award, and DuPont will dismiss its claim that Monsanto uses monopoly power to stifle innovation, the companies said in a joint statement.

The world’s largest seed companies also agreed to enter into licensing agreements for making genetically modified crops.

DuPont fell 0.3 percent to $48.97.

Netflix surged 5.4 percent, the most in the S&P 500, to $190.61. Pacific Crest raised its price target on the company to $225 from its previous estimate of $160, writing in a note that “Netflix is the future of non-live video.”

Boeing jumped 2.1 percent to $86.62. The Chicago-based company won a U.S. appeals court ruling affirming the dismissal of an investor lawsuit accusing company officials of making misleading public statements about the readiness of its 787 “Dreamliner” aircraft.

Consumer durables and apparel retailers had the smallest gain as a group among 24 S&P 500 industries. The International Council of Shopping Centers cut its top-end forecast for March same-store sales. “An abnormally cold bout of weather in eastern two-thirds of the country brought a chill to consumers and their interest in spring goods—especially apparel,” Michael Niemira, ICSC vice president of research and chief economist, wrote.

Gap lost 2.7 percent to $35.03 and Macy’s slumped 0.9 percent to $41.99. Abercrombie & Fitch Co. slid 1.5 percent to $45.69.

Have a wonderful evening everyone.

 

Be magnificent!

 

The key to cosmic awareness, to a consciousness of God,

is in the understanding of the soul.

-Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

 

Success is getting what you want.  Happiness is

wanting what you get.

-Dale Carnegie, 1888-1955

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 just finished reading a book that I highly recommend to you.  It is entitled Wonder and was written by R.J. Palacio, Alfred A. Knopf, 2012.  It is a page turner, wonderful story.

On this day in 421, Venice was founded at twelve o’clock noon according to legend.

Also on this day, March 25^th, 1965, the Rev. Martin Luther King Jr., led 25000 marchers to the state capitol in Montgomery, Alabama to protest the denial of voting rights to blacks.

Old New Year’s Day was on this day until 1751.

Birthdays:

Aretha Franklin, born 1942

Elton John, born 1947.

Winners are not afraid of losing.  But losers are.  Failure is part of the process of success.  People who avoid failure also avoid success. –Robert T. Kiyosaki, Rich Dad, Poor Dad.

Photos of the Day – March 25th, 2013

Daffodils are covered with wet spring snow in Lancaster, Pa., as a storm stretching from the Midwest to the East Coast is burying thoughts of springtime weather under a blanket of heavy wet snow and slush. Richard HertzlerIntelligencer Journal / Lancaster New Era/AP

A long-tailed macaque pauses at the newly completed River Safari in Singapore. Singapore’s latest attraction will showcase 5000 animal specimens representing 300 animal species from freshwater habitats inspired by eight of the world’s iconic rivers. Wong Maye-E/AP

Market Closes for March 25^th, 2013

Market  Index	Close	Change
Dow  Jones	14447.75	-64.28    -0.44%
S&P 500	1551.69	-5.20    -0.33%
NASDAQ	3235.299	-9.700    -0.30%
TSX	12680.71	-76.64
		-0.60%

International Markets

Market  Index	Close	Change
NIKKEI	12546.46	+207.93
		+1.69%
HANG  SENG	22251.15	+135.85
		+0.61%
SENSEX	18681.42	-54.18
		-0.29%
FTSE 100	6378.38	-14.38
		-0.22%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.816	1.820
CND.   30 Year Bond	2.531	2.529
U.S.   10 Year Bond	1.9198	1.9250
U.S.   30 Year Bond	3.1484	3.1476

Currencies

BOC Close	Today	Previous
Canadian $	0.97901	0.97755
US   $	1.02144	1.02296
Euro Rate  1 Euro=		Inverse
Canadian   $	1.31352	0.76132
US  $	1.28594	0.77764

Commodities

Gold	Close	Previous
London Gold   Fix	1604.16	1608.58
Oil	Close	Previous
WTI Crude Future	94.56	93.39
BRENT	109.17	108.42

Market Commentary:

Canada

By Eric Lam

March 25 (Bloomberg) — Canadian stocks fell to the lowest level in about a month, as raw-material and energy producers declined after enthusiasm for Cyprus’s bailout deal waned.

Yamana Gold Inc. and Goldcorp Inc. lost at least 1.9 percent as gold slumped to a one-week low. AltaGas Ltd. slid 3.2 percent after agreeing to buy power generator Blythe Energy LLC for $515 million. Agrium Inc. and Potash Corp. of Saskatchewan Inc. retreated at least 0.8 percent after an analyst cut his rating for the fertilizer sector. BlackBerry dropped 4.5 percent to extend losses a third day as Goldman Sachs Group Inc. lowered its rating on the stock.

The Standard & Poor’s/TSX Composite Index fell 76.64 points, or 0.6 percent, to 12,680.71 at 4 p.m. in Toronto, the lowest level since Feb. 26. The S&P/TSX is up 2 percent for the year. Trading volume was in line with the 30-day average.

“The trading is all fallout from Cyprus,” Arthur Salzer, chief executive officer with Northland Wealth Management, said from Toronto. His firm oversees C$225 million ($220 million).

“Investors with a short to mid-term outlook are throwing in the towel.”

Stocks opened higher, with the S&P/TSX index rising as much as 0.2 percent, and then erased gains as investors weighed whether the Cypriot bailout terms will be applied to other euro- area nations that need to recapitalize financial institutions in the future.

Cyprus, the euro-area’s third-smallest economy, agreed to shrink its banking system by shuttering its second-largest lender in return for a 10 billion-euro ($13 billion) bailout.

Under the deal, senior Cypriot bank bond holders will take losses and uninsured depositors will be largely wiped out.

Raw-materials producers contributed most to the S&P/TSX decline, falling 1.5 percent as a group. All 10 industries in the benchmark equity index retreated.

Gold dropped 0.1 percent to settle at $1,606.50. The metal slipped as much as 1.1 percent earlier. Yamana lost 3.3 percent to C$15.47 and Goldcorp declined 1.9 percent to C$33.67.

Agrium fell 1.5 percent to C$101.36 after Adam Samuelson, analyst with Goldman Sachs, lowered his rating for the fertilizer industry to neutral from attractive. Potash Corp., the world’s largest fertilizer maker, slid 0.8 percent to C$40.10.

First Quantum Minerals Ltd. dropped 3.5 percent to C$19.41, as copper futures for May delivery fell 0.6 percent to $3.445 a pound in New York. Stockpiles of copper in warehouses monitored by the London Metal Exchange expanded to the highest level since October 2003, LME data today showed.

AltaGas slipped 3.2 percent to C$34.90 after saying it would issue C$352 million in stock to help pay for the acquisition of Blythe Energy, which owns a 507 megawatt natural gas-fired plant in California.

Pengrowth Energy Corp., the oil and gas producer, lost 3.4 percent to C$5.20. Cenovus Energy Inc. dropped 1.7 percent to C$31.40. Crude for May delivery advanced to a one-month high, adding 1.2 percent to settle at $94.81 a barrel.

BlackBerry fell 4.5 percent to C$14.51 after Simona Jankowski, analyst with Goldman Sachs, lowered her rating for the stock to neutral from buy following the U.S. debut of the smartphone maker’s new Z10 device last week.

“Our retail checks at over 20 store locations since March 22, including AT&T, Best Buy and Radio Shack, revealed a surprising lack of marketing support and poor positioning,” Jankowski said in a note to clients today.

US

By Sarah Pringle

March 25 (Bloomberg) — U.S. stocks fell, after the Standard & Poor’s 500 Index rose to within a point of its record high, amid concern Cyprus’s bank-restructuring plan will pave the way for losses on deposits in other European nations.

Industrial shares retreated as Textron Inc. and Caterpillar Inc. lost at least 1 percent. BlackBerry slumped 4.6 percent after Goldman Sachs Group Inc. lowered its rating on the stock.

Dell Inc. climbed 2.6 percent after saying Blackstone Group LP and activist investor Carl Icahn have submitted proposals to buy the maker of personal computers.

The S&P 500 fell 0.3 percent to 1,551.69 at 4 p.m. in New York, after rallying as much as 0.5 percent earlier. The Dow Jones Industrial Average lost 64.28 points, or 0.4 percent, to 14,447.75. About 5.9 billion shares traded hands on U.S. exchanges today, 6.1 percent below the three-month average.

“We’re in an environment where in both North America and Europe we have some serious policy decisions that have to take place,” Ron Florance, the Scottsdale, Arizona-based managing director of investment strategy at Wells Fargo Private Bank, which has $169 billion assets under management, said in a phone interview. “When a policy misstep is bad it’s real bad, and the discussions last week were really bad decisions. That’s been resolved, but it always puts people on edge.”

Equities rallied early in the day as Cyprus, the euro- area’s third-smallest economy, met the terms for a 10 billion- euro ($13 billion) bailout after agreeing early this morning in Brussels to shrink its banking system. The finance ministers from the 17-member euro area ratified the country’s accord with the troika of the European Central Bank, the European Commission and the International Monetary Fund.

Stocks turned lower as Reuters reported that Dutch Finance Minister Jeroen Dijsselbloem said the Cyprus bailout should be viewed as a template for solving banking problems in the region.

Dijsselbloem later released a statement clarifying his remarks, saying Cyprus is a “specific case with exceptional challenges” which required the measures agreed upon.

The S&P 500 declined 0.2 percent last week for its second weekly drop as Cyprus struggled to raise enough money to obtain the bailout and a report showed euro-area manufacturing contracted more than expected. The gauge has still climbed 8.8 percent in 2013, and advanced today within a point of its record of 1,565.15 set in October 2007, before erasing gains. The Dow reached an intraday high last week after first surpassing its all-time record on March 5.

“Moving through the old high is likely to require some strong positive news. Cyprus was just not the catalyst to drive this market higher,” Alan Gayle, senior strategist at RidgeWorth Capital Management, said in a phone interview. The Richmond, Virgina-based firm oversees about $48 billion.

The bull market in equities entered its fifth year this month as the S&P 500 more than doubled from its bottom in 2009, driven by an unprecedented three rounds of bond purchases by the Federal Reserve.

Fed Chairman Ben S. Bernanke said today that low interest rates in advanced nations benefit the world economy while not creating a disruptive diversion of trade through weaker currencies. New York Fed President William Dudley said in a speech in New York that he sees the U.S. labor market improving slowing, warranting a continuation of “very accommodative” policy.

Industrial and raw-material shares fell at least 0.7 percent, as all 10 S&P 500 groups declined. Textron stumbled 3.5 percent to $29.69, while Caterpillar slumped 1 percent to $86.64. FedEx Corp. slid 1.5 percent to $97.02.

BlackBerry, formerly known as Research In Motion Ltd., tumbled 4.6 percent to $14.23. Goldman Sachs downgraded its rating on the Canadian smartphone maker to neutral from buy, citing a disappointing debut for the company’s Z10 phone in the U.S. Citigroup Global Markets Inc. analyst Jim Suva also said today the BlackBerry 10 introduction at AT&T Inc. was a “disappointment.”

Red Hat Inc., the largest seller of Linux operating system software, dropped 3.6 percent to $48.99. Raymond James & Associates Inc. equity analyst Michael Turits cut his rating on the Raleigh, North Carolina-based company to market perform from outperform, noting increasing risk of Linux growth deceleration as well as challenges among license sales.

Apollo surged 7.1 percent to $18.25 as second-quarter profit and sales topped analysts’ estimates, even as enrollment fell. Apollo’s profit was driven by the higher-than-expected revenue combined with “slightly better cost controls,” Jeffrey Silber, an analyst at BMO Capital Markets Corp., said today in a note to investors.

Dell gained 2.6 percent to $14.51. Blackstone, the world’s biggest private-equity firm, outlined an offer valued at more than $14.25 a share, while Icahn said he would pay $15 a share in cash, Dell said today.

Best Buy Co. added 1.8 percent to $23.20. Founder Richard Schulze will return to the company as chairman emeritus after failing in a six-month attempt to take over the electronics retailer he started more than four decades ago.

Visa Inc. rose 2.4 percent to a record $164. Nomura Holdings Inc. said a long-term global shift away from cash would help the bank-card network at Western Union Co.’s expense.

Western Union, the world’s largest money-transfer business, added 0.1 percent to $14.66, erasing an earlier loss of as much as 1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

If you see God within every man and woman,

then you can never do harm to any man or woman.

If you see God in yourself, then you attain perfection.

The Bhagavad Gita

As ever,

 

Carolann

 

Take everything you like seriously,

except yourselves.

-Rudyard Kipling, 1865-1936

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:

An interesting item when I read it this morning:

Be better, with science

“Want to be a better person?  Spend more time thinking about science,” says Pacific Standard magazine.  “That’s the implication of newly published research, which finds people who study science – or even are momentarily exposed to the idea of scientific research – are more likely to condemn unethical behavior, and more inclined to help others.  ‘Thinking about science leads individuals to endorse more stringent moral norms,’ report psychologist Christine Ma-Kellams of Harvard University and Jim Blascovich of the University of California, Santa Barbara.  Their research is published in the online journal PLoS One.”  -The Globe & Mail, Thursday, March 21^st, 2013.

Photos of the Day – March 21st, 2013

A Pakistani woman, carrying bowls filled with water on her head, walks back to her home through a field on the eve of World Water Day, on the outskirts of Islamabad, Pakistan. Muhammed Muheisen/AP

An indigenous man wearing face paint and a headdress stands inside the abandoned old Indian museum in Rio de Janeiro, Brazil. Brazilian Federal Court ruled that indigenous people who have been occupying the building since 2006 have to leave the area because it is next to the Maracana stadium, 2014 World Cup soccer tournament and 2016 Olympic games. Felipe Dana/AP

Market Closes for March 21st, 2013

 

Market  Index	Close	Change
Dow  Jones	14421.49	-90.24    -0.62%
S&P 500	1545.80	-12.91    -0.83%
NASDAQ	3222.597	-31.591    -0.97%
TSX	12747.87	-78.68
		-0.61%

International Markets

Market  Index	Close	Change
NIKKEI	12635.69	+167.46
		+1.34%
HANG  SENG	22225.88	-30.56
		-0.14%
SENSEX	18792.87	-91.32
		-0.48%
FTSE 100	6388.55	-44.15
		-0.69%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.814	1.857
CND.   30 Year Bond	2.552	2.553
U.S.   10 Year Bond	1.9112	1.9529
U.S.   30 Year Bond	3.1322	3.1917

Currencies

BOC Close	Today	Previous
Canadian $	0.95863	0.97549
US   $	1.04316	1.02512
Euro Rate  1 Euro=		Inverse
Canadian   $	1.32187	0.75651
US  $	1.28974	0.77535

Commodities

Gold	Close	Previous
London Gold   Fix	1614.70	1605.86
Oil	Close	Previous
WTI Crude Future	92.13	92.92
BRENT	108.25	109.53

Market Commentary:

Canada

By Nikolaj Gammeltoft and Sarah Pringle

March 21 (Bloomberg) — Canadian stocks fell for the third time in four days as concern about Europe’s debt crisis overshadowed a rise in Canadian retail sales and better-than- estimated U.S. economic data.

Bankers Petroleum Ltd. and Canadian Natural Resources Ltd. dropped at least 2.5 percent as oil fell 1.1 percent. Financial shares slumped as Royal Bank of Canada and Canadian Imperial Bank of Commerce lost more than 1 percent. Corus Entertainment Inc. slid 3.4 percent after an RBC Capital Markets analyst downgraded the media company. OceanaGold Corp. soared 10 percent after Edison Investment Research predicted a “transformational year” for the mining company.

The Standard & Poor’s/TSX Composite Index fell 78.68 points, or 0.6 percent, to 12,747.87 at 4 p.m. in Toronto. The S&P/TSX has risen 2.5 percent this year. Trading volume was 5.1 percent below the 30-day average. Nine of 10 groups in the benchmark index retreated.

“Putting the European debt crisis back on the front burner created a bit of hesitation,” Bob Decker, who helps oversee C$6 billion ($6 billion) at Aurion Capital Management Inc. in Toronto, said in a phone interview. “It’s created a bit of a light volume sell-off.”

Canadian equities slumped as German manufacturing unexpectedly contracted and Cyprus worked to obtain a European bailout. The European Central Bank said it may cut Cypriot banks off from emergency funds after March 25 while the island nation’s president, Nicos Anastasiades, tried to forge agreement on a plan to stave off financial collapse.

A purchasing managers’ index for Germany’s manufacturing indicated contraction in the sector, adding to signs the euro- area economy is struggling to emerge from a recession. Oil retreated to a two-week low, with crude for May delivery sliding $1.05 to settle at $92.45 a barrel.

Bankers Petroleum dropped 2.7 percent to C$2.84. The oil and gas producer appointed David Lawrence French as its president and chief executive officer following the retirement of Abdel Badwi. Canadian Natural Resources fell 2.5 percent to C$32.79, and Encana Corp. retreated 2.1 percent to C$19.51.

Retail sales in Canada gained 1 percent in January to recoup some of the previous month’s 2.3 percent plunge on advances at auto dealerships and department stores, a sign the economy may be recovering.

In the U.S., fewer Americans than forecast filed jobless claims last week. Other reports showed sales of previously owned U.S. homes rose to the highest level in more than three years in February, and a gauge of leading economic indicators topped estimates for last month.

Banks, industrial shares and telephone companies retreated the most out of 10 groups in the benchmark Canadian equities index, sliding at least 0.8 percent. Royal Bank of Canada fell 1 percent to C$60.74 and Canadian Imperial Bank of Commerce lost 1.4 percent to C$81.09.

Canadian Pacific Railway Ltd. dropped 2.1 percent to C$129.24, while Canadian National Railway Co. lost 2.5 percent to C$98.84. Intermodal rail traffic in North America climbed at the slowest rate this year in the week ended March 16 compared with a year ago, Association of American Railroads data show.

Corus Entertainment slumped 3.4 percent to C$25.22. RBC Capital Markets equity analyst Haran Posner reduced his rating on the Toronto-based company to sector perform from outperform.

OceanaGold surged 10 percent to C$2.92, for its biggest gain since October 2011. Edison Investment Research said “promising exploration results” at the company suggest a new source of low-cost gold production and higher earnings.

US

By Sarah Pringle and Lu Wang

March 21 (Bloomberg) — U.S. stocks fell, after the Standard & Poor’s 500 Index approached a record high yesterday, as concern about Europe’s debt crisis overshadowed better-than- estimated American economic data.

Oracle Corp. plunged 9.7 percent after sales and earnings missed estimates. Cisco Systems Inc. and Juniper Networks Inc. slipped at least 2.2 percent amid an analyst downgrade. Guess? Inc. fell 7.2 percent after its revenue forecast trailed projections. Yahoo! Inc. added 3.5 percent as Oppenheimer & Co. upgraded the shares.

The S&P 500 fell 0.8 percent to 1,545.8 at 4 p.m. in New York, headed toward its second weekly decline of the year. The Dow Jones Industrial Average lost 90.24 points, or 0.6 percent, to 14,421.49. About 5.9 billion shares traded hands on U.S. exchanges today, 6.7 percent below the three-month average.

“There’s going to be on-again, off-again, troublesome news out of Europe and occasionally it’s going to cause the market some disruption,” Bruce Bittles, chief investment strategist at Milwaukee-based RW Baird & Co., which oversees $85 billion, said in a telephone interview. “The U.S. economy can do somewhat better, but it will probably be in a slow growth mode for most of 2013. That’s how it’s been over the last four years and the market has done quite well in that environment.”

Equities slid today as a purchasing managers’ index for Germany’s manufacturing industry unexpectedly fell this month while a measure of euro-area services and manufacturing output contracted more than forecast.

The European Central Bank said it may cut Cypriot banks off from emergency funds after March 25 as the island nation’s president, Nicos Anastasiades, struggled to forge agreement on a plan to stave off financial collapse.

“We don’t feel anything has been solved in Europe in terms of the debt situation there,” Eric Thorne, who helps oversee about $6 billion at Bryn Mawr Trust Co. in Bryn Mawr, Pennsylvania, said in a phone interview. “Europe and the surrounding economies having trouble could well be the reason that the market decides to pause here for a while.”

In the U.S., sales of previously owned homes rose in February to the highest level in more than three years.

Purchases increased 0.8 percent to a 4.98 million annualized rate, the most since November 2009, figures from the National Association of Realtors showed today in Washington.

Other data showed applications for jobless benefits increased by 2,000 to 336,000 in the week ended March 16, while the Conference Board’s gauge of the outlook for the next three to six months climbed 0.5 percent for the second straight month.

The S&P 500 climbed yesterday to within seven points of its record reached in 2007 while the Dow hit an intraday all-time high as the Federal Reserve indicated it will keep up bond buying to stimulate the economy.

The bull market in U.S. equities entered its fifth year this month as the central bank embarked on three rounds of bond purchases to keep interest rates low and corporate profits beat analysts’ estimates.

Nine out of the 10 S&P 500 groups fell today as raw- materials and technology companies dropped the most, sinking at least 1.3 percent. The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, climbed 10 percent to 13.99.

The gauge, known as the VIX, is down 22 percent this year and reached its lowest level since February 2007 last week.

Oracle led the slump in technology shares, tumbling 9.7 percent to $32.30. The largest database-software supplier reported sales and profit that missed analysts’ estimates as Chief Executive Officer Larry Ellison is being stymied by customers switching to Internet-based cloud systems, curbing their reliance on Oracle’s servers, databases and related programs.

Cisco declined 3.8 percent to $20.84 while Juniper Networks lost 2.2 percent to $18.89. The makers of networking equipment were cut to underperform, an equivalent of sell, from market perform at FBR Capital Markets. Increased competition means there will be a slow but “meaningful” reduction in the number of routers and switches deployed into networks, analyst Scott Thompson said in a note.

Jabil Circuit Inc. retreated 4.5 percent to $18.60. The contract electronics manufacturer forecast earnings excluding some items of 58 cents a share at most for the fiscal third quarter. That trailed the average analyst estimate of 61 cents in a Bloomberg survey.

Airgas Inc. dropped 5.2 percent to $97.96. The largest U.S. distributor of packaged gases said it may not meet its fiscal fourth-quarter earnings guidance after sales didn’t increase through February.

Guess slid 7.2 percent to $25.01. The maker of designer jeans forecast annual revenue of $2.6 billion to $2.64 billion, less than analysts’ estimates of $2.74 billion.

Yahoo, the largest U.S. web portal, rose 3.5 percent to $22.86. The shares were upgraded to outperform, meaning investors should buy the shares, from market perform at Oppenheimer, which cited the value of Yahoo Japan shares and a possible initial public offering of Alibaba.com Ltd. in the next 12 months.

KB Home, the best-performing U.S. homebuilder stock this year, rallied 2.5 percent to $22.10, its highest level since September 2008. The Los Angeles-based company reported a narrower loss for its fiscal first quarter as sales and prices climbed amid a nationwide rebound in housing construction.

The S&P 500 is approaching a record almost 5 1/2 years after peaking and two years after most stocks in the gauge fully recovered from the worst bear market since the 1930s.

The index has climbed 130 percent since March 2009, adding $10 trillion to the value of American equity as it erased losses from the credit crisis. The majority of companies surpassed their previous highs by April 2011, according to data compiled by Bloomberg. The S&P 500 Equal Weighted Index, which counts each company in the index equally instead of by their market value, increased 192 percent from the bottom.

Unlike past bull markets, where a single industry dominated, all groups have improved in this rally as the U.S. economy recovers. The breadth of the rebound can be seen in the S&P 500’s weightings, where none of the 10 industry measures represents more than 18 percent of the index. In 2000, technology companies made up 35 percent of the gauge, and in 2006, financial stocks accounted for 22 percent.

“The breadth of this rally is rather remarkable,” Stephen Wood, who helps manage about $152 billion as the New York-based chief market strategist for North America at Russell Investments, said by telephone. “It speaks to the fact that four years ago the markets were pricing in the end of the world, but the end of the world was not nigh. So we’ve seen this significant but drawn-out recovery across the board in equities– small, medium, large, defensive, dynamic, value, growth.”

Have a wonderful evening everyone.

 

Be magnificent!

 

Your reactions are shared by all humanity.

Your brain is not yours, it has evolved through centuries of time.

So we are questioning deeply whether there is an

individual at all.  We are the whole of humanity,

we are the rest of mankind.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

If you would understand your own age, read

the works of fiction produced in it.  People in

disguise speak freely.

-Arthur Helps, 1813-1875

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:

Carolann is out of the office this afternoon, so I am sending the Newsletter today on her behalf.

To mark the first day of spring, I share this poem with you:

 

Today I Cheer

Spring is here

Light blue sky

Fluffy clouds float by

Birds whistle sweeter

Making their nests neater

Wisteria bush flowers did lack

Now flower buds bloom in lilac!

 

Today in History:

1903 – In Paris, paintings by Henri Matisse were shown at the “Salon des Independants”.

1911 – The National Squash Tennis Association was formed in New York City.

1914 – The first international figure skating championship was held in New Haven, CT.

1922 – The USS Langley was commissioned. It was the first aircraft carrier for the U.S. Navy.

1947 – A blue whale weighing 180-metric tons was caught in the South Atlantic.

1956 – Mount Bezymianny on Kamchatka Peninsula (USSR) exploded.

1963 – The first “Pop Art” exhibit began in New York City.

1964 – The ESRO (European Space Research Organization) was established.

“Try a thing you haven’t done three times. Once, to get over the fear of doing it. Twice, to learn how to do it. And a third time, to figure out whether you like it or not.” – Virgil Garnett Thomson

Photo of the Day – March 20^th, 2013

A honeybee approaches a snowdrop flower in Klosterneuburg, Austria, on the first day of spring. Heinz-Peter Bader/Reuters

A man cycles past a car covered with snow in Beijing. Kim Kyung-Hoon/Reuters

Market Closes for March 20^th, 2013

Market  Index	Close	Change
Dow  Jones	14511.73	+55.91    +0.39%
S&P 500	1558.07	+9.73    +9.73%
NASDAQ	3254.188	+25.093    +0.78%
TSX	12816.32	+42.45
		+0.33%

International Markets

Market  Index	Close	Change
NIKKEI	12468.23	+247.60
		+2.03%
HANG  SENG	22256.44	+214.58
		+0.97
SENSEX	18884.19	-123.91
		-0.65%
FTSE 100	6432.70	-8.62
		-0.13%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.857	1.820
CND.   30 Year Bond	2.553	2.519
U.S.   10 Year Bond	1.9529	1.9017
U.S.   30 Year Bond	3.1917	3.1281

Currencies

BOC Close	Today	Previous
Canadian $	0.97549	0.97349
US   $	1.02512	1.02723
Euro Rate  1 Euro=		Inverse
Canadian   $	1.32793	0.75305
US  $	1.29336	0.77318

Commodities

Gold	Close	Previous
London Gold   Fix	1605.86	1613.00
Oil	Close	Previous
WTI Crude Future	92.92	92.16
BRENT	109.53	108.50

Market Commentary:

Canada

By Eric Lam

March 20 (Bloomberg) — Canadian stocks rose for the first time in three days as European policy makers weighed bailout options for Cyprus and the Federal Reserve maintained its stimulus efforts.

Oil producers Canadian Natural Resources Ltd. and Cenovus Energy Inc. each gained 1 percent after crude advanced the most in almost two weeks. BlackBerry climbed 7.2 percent as an analyst at Morgan Stanley raised his rating on the smartphone maker’s stock. Valeant Pharmaceuticals International Inc. added 2.5 percent after agreeing to buy Obagi Medical Products Inc. for about C$360 million ($351 million).

The Standard & Poor’s/TSX Composite Index rose 52.68 points, or 0.4 percent, to 12,826.55 at 4 p.m. in Toronto. The S&P/TSX has risen 3.2 percent this year. Trading volume was in line with the 30-day average.

“There’s a return to confidence in all markets, whether it be equity markets or commodity markets,” said Anish Chopra, managing director and fund manager with TD Asset Management Ltd., from Toronto. His firm oversees about C$204 billion.

“People are dealing with the issues in Cyprus and looking at the alternatives, and the U.S. economy is doing well under the circumstances.”

The Fed will keep up its bond buying at a pace of $85 billion a month even as the world’s largest economy and the job market pick up, the Federal Open Market Committee said today at the conclusion of a two-day meeting in Washington. The purchases will continue until “the outlook for the labor market has improved substantially in a context of price stability.”

The central bank also left unchanged its statement that it plans to hold its target interest rate near zero as long as unemployment remains above 6.5 percent and inflation is projected to be no more than 2.5 percent.

“The Fed is staying the course, looking for sustained economic growth before they take away stimulus,” Chopra said.

Oil climbed as much as 1.1 percent after Luxembourg’s Luc Frieden called for fellow euro-area finance ministers to assemble a new rescue package for Cyprus to avoid an implosion of its banking sector. The island nation yesterday rejected an unprecedented levy on bank deposits, causing crude futures to tumble the most in a month.

Oil for April delivery advanced 0.9 percent to settle at $92.96 a barrel, maintaining its gains after the U.S. Energy Information Administration said stockpiles unexpectedly fell last week.

Energy stocks contributed most to gains in the S&P/TSX, adding 0.4 percent as a group. All 10 industries in the benchmark index advanced. Canadian Natural Resources rose 1 percent to C$33.62 and Cenovus increased 1 percent to C$32.67.

BlackBerry, formerly Research In Motion Ltd., jumped 7.2 percent to C$16.53, the highest since Feb. 7. Ehud Gelblum, analyst with Morgan Stanley, raised his rating for the stock to the equivalent of a buy and increased his price target to $22 from $10, saying BlackBerry’s new line of phones will boost profit margins.

Valeant gained 2.5 percent to C$75.21 for its highest close in 10 years, after agreeing to pay $19.75 a share in cash for Obagi, which makes skin-care creams. Valeant expects the deal to add to its cash earnings immediately.

Franco-Nevada Corp., the mineral royalties and investment company, slumped 4.3 percent to C$45.38 after yesterday reporting fourth-quarter adjusted earnings of 32 cents a share.

That was short of the average estimate of 34 cents based on a survey of 10 analysts by Bloomberg.

US

By Lu Wang and Sarah Pringle

March 20 (Bloomberg) — U.S. stocks rose, snapping a three- day decline in the Standard & Poor’s 500 Index, as the Federal Reserve will keep up its bond buying to stimulate the economy and euro-area leaders weighed options for Cyprus.

Homebuilders rallied, as Lennar Corp. gained 4.8 percent after posting first-quarter earnings that beat projections.

Adobe Systems Inc. climbed 4.2 percent as the software maker reported sales and profit that exceeded analysts’ estimates.

FedEx Corp. slumped 6.9 percent as it lowered its 2013 earnings forecast amid a widening customer shift to cheaper overseas shipments. Oracle Corp. tumbled 7.5 percent after the close of regular trading as sales and profit missed estimates.

The S&P 500 advanced 0.7 percent to 1,558.71 at 4 p.m. in New York, trading within seven points of its record reached in 2007. The Dow Jones Industrial Average rose 55.91 points, or 0.4 percent, to 14,511.73. About 5.9 billion shares traded hands on U.S. exchanges today, 6.3 percent below the three-month average.

“The Fed essentially did what’s to be expected, which is to reinforce that the economy still needs support,” Hank Herrmann, Overland Park, Kansas-based chief executive officer of Waddell & Reed Investment Management Co., said in a phone interview. His firm manages $103 billion. “Cyprus just reminds us all the fragility of the economic circumstances in Europe. As you look at the economic data, pretty much everywhere outside the U.S. has been equally unconvincing in terms of any kind of expansion.”

More than three years into the expansion, the central bank led by Chairman Ben S. Bernanke is pressing on with open-ended purchases of Treasury and mortgage securities to boost the pace of growth and heal a labor market still scarred by the deepest recession since the Great Depression.

The S&P 500 has surged 130 percent from a 12-year low in 2009 as companies reported better-than-estimated earnings and the Fed embarked on three rounds of bond purchases to stimulate the economy. The benchmark index rose to within two points of its 2007 record last week while the Dow hit an all-time high.

The Federal Open Market Committee, at the conclusion of a two-day meeting in Washington, left unchanged its statement that it plans to hold its target interest rate near zero as long as unemployment remains above 6.5 percent and inflation is projected to be no more than 2.5 percent.

Policy makers lowered their expectations for the unemployment rate at the end of the year to a range of 7.3 percent to 7.5 percent, from a previous forecast of 7.4 percent to 7.7 percent. The economy will expand 2.3 percent to 2.8 percent this year, they estimate, compared with their earlier forecast of 2.3 percent to 3 percent growth.

Stocks rallied earlier today as euro-area leaders weighed options for Cyprus. Investors speculated that the European Central Bank will continue to support the country’s banks until next week, after lawmakers in the Mediterranean nation rejected an unprecedented levy on bank deposits.

“In a lot of ways what’s happening in Cyprus only serves to reinforce the Fed’s current policy,” Richard Helm, a portfolio manager at New York-based Cohen & Steers, which oversees more than $40 billion, said in a phone interview. “It puts to bed that the Fed might raise rates sooner than later if you do have issues re-emerging in Europe.”

Nine of 10 S&P 500 groups gained as consumer companies climbed the most, rising at least 1 percent. The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, slid 12 percent to 12.67, after a 27 percent jump over two days. The gauge, known as the VIX, is down 30 percent this year.

An S&P index of homebuilders climbed 3.7 percent to the highest level since July 2007. Builders are benefiting from revived demand for new homes as the inventory of existing houses for sale shrinks and buyers take advantage of mortgage rates that are close to record lows.

Lennar jumped 4.8 percent to $43.40. The third-biggest U.S. homebuilder by revenue said earnings rose in the fiscal first quarter as prices and sales increased amid the broadening national housing recovery.

Toll Brothers Inc., the largest U.S. luxury-home builder, added 5.9 percent to $36.53. Orders are up 49 percent for the spring, Chief Executive Officer Douglas Yearley said today on Bloomberg Television.

A Bloomberg gauge of U.S. airlines gained 2.3 percent to 49.90, its highest level since February 2008. The airline group IATA said global airlines are on track to post profit 40 percent higher than the previous year, due to strong passenger demand, cargo improvement and industry consolidation in domestic markets.

Alaska Air Group Inc. surged 3.4 percent to a record $63, while Delta Air Lines Inc. jumped 3.2 percent to $17.07. U.S. Airways Group added 2.7 percent to $17.23, the highest level since 2007.

Adobe gained 4.2 percent to $42.46, as the maker of Photoshop software reported sales for the quarter ended March 1 of $1.01 billion, beating the average analyst estimate of $985.8 million. Profit excluding some items was 35 cents a share, exceeding the average analyst projection of 31 cents.

BlackBerry, formerly Research In Motion Ltd., increased 6.5 percent to $16. Morgan Stanley raised its rating on the Canadian-based phone company to overweight from underweight. The BlackBerry 10 device may boost gross margins and average selling prices, Morgan Stanley analyst Ehud Gelblum said in a note.

Family Dollar Stores Inc. rallied 3.8 percent to $60.36, pacing gains among discount retailers. Dollar Tree Inc. advanced 4 percent to $46.16, while Dollar General Corp. rose 4.2 percent to $49.79.

FedEx fell 6.9 percent to $99.13. The operator of the world’s largest cargo airline said profit in the fiscal year through May will be $6 to $6.20 a share, down from an earlier forecast of as much as $6.60. Both the projection and fiscal third-quarter profit trailed analysts estimates.

The company, an economic bellwether because it moves goods as varied as medical supplies and auto parts, is in the midst of a $1.7 billion restructuring to compensate for customers moving away from the fastest, most lucrative deliveries. Starting in April, it will decrease capacity to and from Asia and put low- yielding shipments in less expensive networks, Chief Executive Officer Fred Smith said.

Oracle Corp. tumbled 7.5 percent to $33.10 as of 4:50 p.m. in New York. The company posted fiscal third-quarter sales and profit that missed analysts’ estimates as customers chose competitors’ Web-based software.

Cintas Corp. dropped 4.5 percent to $43.88 after the provider of restroom supplies and entrance mats said it expects full-year earnings per share of $2.50 to $2.54. That compares with a previous forecast of $2.50 to $2.58.

 

Happy first day of Spring everyone!!

 

Be magnificent!

 

“Learn from yesterday, live for today, hope for tomorrow.” – Unknown Source

 

As ever,

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

Tel: 778-430-5808

Fax: 778-430-5838

 

Dear Friends,

Tangents:

Poem:

Two Propositions about Time

By Iain Bamforth

 

What can we do for grief?

Grief goes on and on like the small

still voice after the fire,

mumbling to itself, in the original way.

 

Grief is weak and at a loss.

It doesn’t know what to make of hope

reusing the very sense

it was thought to be hoping for.

 

It is a moiling in the heart

(not in its usual place);

it goes on living, wanting

us to remember too we only live

 

what grief says hope meant.

 

–from The Crossing Fee.

Photo of the Day – March 18^th, 2013

A young woman attempts to launch her kite on ‘CleanMonday’ at Filopappos hill with the ancient Parthenon temple seen in the background in Athens, Greece. Petros Giannakouris/AP

Market Closes for March 18^th, 2013

Market  Index	Close	Change
Dow  Jones	14452.06	-62.05    -0.43%
S&P 500	1552.10	-8.60    -0.55%
NASDAQ	3237.590	-11.477    -0.35%
TSX	12781.76	-48.27
		-0.38%

International Markets

Market  Index	Close	Change
NIKKEI	12220.63	-340.32
		-2.71%
HANG  SENG	22083.36	-449.75
		-2.00
SENSEX	19293.20	-134.36
		-0.69%
FTSE 100	6457.92	-31.73
		-0.49%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.862	1.897
CND.   30 Year Bond	2.559	2.595
U.S.   10 Year Bond	1.9546	1.9895
U.S.   30 Year Bond	3.1843	3.2115

Currencies

BOC Close	Today	Previous
Canadian $	0.97820	0.98092
US   $	1.02228	1.01945
Euro Rate  1 Euro=		Inverse
Canadian   $	1.32317	0.75576
US  $	1.29433	0.77260

Commodities

Gold	Close	Previous
London Gold   Fix	1605.31	1591.95
Oil	Close	Previous
WTI Crude Future	93.74	93.45
BRENT	110.45	111.43

Market Commentary:

Canada

By Eric Lam

March 18 (Bloomberg) — Canadian stocks dropped for the first time in three days after an unprecedented levy on Cypriot bank deposits threatened to worsen Europe’s debt crisis and hurt demand for raw materials.

Suncor Energy Inc. and Canadian Natural Resources Ltd. retreated at least 0.7 percent as energy shares slumped. Teck Resources Ltd. and First Quantum Minerals Ltd. declined more than 1.4 percent after copper slid to a four-month low. Potash Corp. of Saskatchewan Inc. retreated 1.4 percent after employees of Israel Chemicals Ltd. went on strike to protest a possible takeover by the Canadian company. Barrick Gold Corp. gained 1.3 percent as gold rallied.

The Standard & Poor’s/TSX Composite Index fell 48.27 points, or 0.4 percent, to 12,781.76 at 4 p.m. in Toronto. The S&P/TSX has risen 2.8 percent this year. Trading volume was 0.9 percent higher than the 30-day average.

“Certainly the Cyprus news is affecting the market today,” said Paul Gardner, a fund manager with Avenue Investment Management, in Toronto. He helps oversee about C$300 million ($294 million). “We have to worry about the bigger problem of contagion, but the fact is Greece is still there, and they are accepting their cuts. This is collateral damage from a very small country that means not too much to the European Union.”

Euro-region finance ministers forced depositors in Cypriot banks to share in the cost of rescuing the island nation, reducing the cost of the bailout by 5.8 billion euros ($7.5 billion) to 10 billion euros. The country accounts for less than half a percent of the 17-nation euro-area economy.

Energy shares contributed most to declines in the S&P/TSX, falling 0.7 percent, as seven of 10 industries retreated. Suncor slumped 1.9 percent to C$31.08, and Canadian Natural Resources lost 0.7 percent to C$33.31.

Crude for April delivery rose 0.3 percent to settle at $93.74 a barrel, erasing earlier losses of as much as 1.8 percent. European policy makers signaled flexibility on the application of a bank tax in Cyprus, saying easing the cost to smaller savers was up to the local government.

Teck, Canada’s largest diversified miner, fell 2.2 percent to C$29.85. First Quantum lost 1.4 percent to C$21.43. Copper futures for delivery in May tumbled 2.6 percent to settle at $3.428 a pound at 1:12 p.m. on the Comex in New York after touching $3.4175, the lowest since Nov. 9.

Barrick Gold, the world’s largest gold producer, rose 1.3 percent to C$29.59. Gold for April delivery climbed 0.8 percent to settle at $1,604.60, a two-week high, as the metal’s appeal as a haven increased amid concerns about European debt.

Potash Corp. fell 1.4 percent to C$41.04. Hundreds of employees from Israel Chemicals blocked a plant entrance to protest the Canadian fertilizer maker’s proposed acquisition, a union representative said in an e-mailed statement. Israel Chemicals said the protest was motivated by issues not related to the potential deal.

US

By Lu Wang and Sarah Pringle

March 18 (Bloomberg) — U.S. stocks fell, after the Dow Jones Industrial Average reached record highs last week, as a levy imposed by euro-area leaders on Cypriot bank deposits sparked concern the region’s debt crisis is intensifying.

Nine of 10 groups in the S&P 500 fell as financial shares dropped the most, sinking 1 percent. Schlumberger Ltd. retreated 3.9 percent after saying North American activity was below estimates. Carnival Corp. declined 3 percent amid analyst downgrades. Apple Inc. and Hewlett-Packard Co. climbed at least 2.7 percent for the biggest gains among technology shares.

The Standard & Poor’s 500 Index slid 0.6 percent to 1,552.10 at 4 p.m. in New York. The Dow declined 62.05 points, or 0.4 percent, to 14,452.06 today. About 5.8 billion shares traded hands on U.S. exchanges today, 8.5 percent below the three-month average.

“We’ve had a wonderful market and somewhat carefree attitude,” Richard Sichel, who oversees about $1.8 billion as chief investment officer at Philadelphia Trust Co., said in a phone interview. “Now here’s sort of a dose of reality, and although it’s such a small country, what they’re doing sort of sends shivers through investors and other countries.”

Euro-region finance ministers forced depositors in Cypriot banks to share in the cost of rescuing the island nation, reducing the cost of the bailout by 5.8 billion euros ($7.5 billion) to 10 billion euros. The country accounts for less than half a percent of the 17-nation euro-area economy.

A parliamentary vote on the levy due to take place today was postponed. Equity markets are closed in Cyprus and Greece for a scheduled bank holiday today. Cypriot banks will remain closed tomorrow and March 20, a government official said, asking not to be identified.

The bull market in U.S. equities entered its fifth year this month as the S&P 500 more than doubled from its bottom in 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases by the Federal Reserve. The S&P 500 rose to within two points of its 2007 record last week while the Dow reached an all-time high.

The Federal Open Market Committee is scheduled to begin a two-day meeting tomorrow. The committee in December agreed to link its zero-rate policy to thresholds for unemployment and inflation so investors and households know what conditions will prompt the Fed to consider raising its record-low interest rate.

Financial and energy companies fell the most among 10 S&P 500 groups, losing at least 0.9 percent. The KBW Bank Index slid 0.9 percent as 23 of its 24 members retreated. Morgan Stanley tumbled 2.5 percent to $22.99 while Citigroup Inc. sank 2.2 percent to $46.24.

Goldman Sachs Group Inc. slumped 1.9 percent to $151.95.

The U.S. Supreme Court rejected an appeal by the trading firm in an investor lawsuit over mortgage-backed securities whose value plummeted during the 2008 financial crisis.

Schlumberger fell 3.9 percent to $76.34. The world’s largest oilfield-services provider said North American customers are re-activating fewer-than-estimated rigs during the first quarter. Pricing is under pressure in the region, the company said in a conference hosted by Howard Weil Inc.

Carnival slid 3 percent to $33.92. At least three analysts cut their ratings on the cruise operator. The company, beset by mishaps at sea this year, last week reduced its annual earnings forecast to reflect costs from an engine fire that crippled the Carnival Triumph in February.

J.C. Penney Co. rallied 6.2 percent, the most in the S&P 500, to $16.44. The department store chain could turn its top 300 stores into a real estate investment trust-like entity that would sublet space to other brands, ISI Group analyst Omar Saad said in a note.

Apple added 2.7 percent to $455.72. The company is poised to boost its dividend by more than a half, according to analysts surveyed by Bloomberg, providing investors hit by a share slump with one of the highest yields in the U.S. technology industry.

Chief Executive Officer Tim Cook, who a year ago this month reinstated a dividend and announced a $10 billion buyback, faces mounting pressure to take bolder steps to pay out more of Apple’s $137.1 billion in cash and investments. Investors including David Einhorn’s Greenlight Capital Inc. are pushing for more money as growth slows and competition from rivals such as Samsung Electronics Co. intensifies.

“The accumulation of cash has become excessive,” Brian White, an analyst at New York-based Topeka Capital Markets Inc., said in an interview. He rates the shares a buy, with an $888 price target. “It doesn’t matter which bearish scenario you forecast, they’re never going to need this much cash.”

Hewlett-Packard gained 2.9 percent to $22.83, rising the most in the Dow. Morgan Stanley raised its rating on the stock to overweight, citing potential for the company to return more cash to investors. Hewlett-Packard may generate free cash flow of about $6.7 billion in the 2013 fiscal year, almost 35 percent more than the company’s $5 billion forecast, according to Katy Huberty, an analyst at Morgan Stanley.

Phone stocks had the only gain among S&P 500 groups, adding 0.1 percent. Verizon Communications Inc. climbed 1.5 percent to $48.75 as Citigroup lifted its rating to buy from neutral, saying a buyout of Vodafone Group Plc’s stake in their wireless venture would add to earnings.

The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, surged 18 percent to 13.36, after dropping 10 percent last week to its lowest level since February 2007. The gauge, known as the VIX, is down 26 percent this year.

Traders are placing a record number of bets that U.S. stock-market swings will increase after a six-year low in the VIX fueled speculation volatility has fallen too far, too fast.

The shares outstanding for the iPath S&P 500 VIX Short-Term Futures ETN, the most-active security that tracks changes in VIX futures, has climbed 95 percent to an all-time high of 61.9 million this year, data compiled by Bloomberg show. The total for the ProShares Ultra VIX Short-Term Futures is up 10-fold to 39.9 million last week, data compiled by Bloomberg show.

“If you look at the economy and all the political issues, then there are a lot of headwinds out there. And yet the market just continues to go,” Frank Braddock, senior portfolio manager with the Braddock Group of JHS Capital Advisors, said by phone from Columbia, South Carolina, on March 15. JHS oversees about $3.4 billion. “The fear I have is that if this psychology of wanting to push the market higher changes, then we’ll see a pretty sharp pullback and a spike in volatility.”

 

Have a wonderful evening everyone.

 

Be magnificent!

 

The world in its essence is the reconciliation of opposite forces.

These forces, like the right hand and left hand of the creator, act in perfect harmony,

and yet in opposite directions.

Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

 

Man’s greatness lies in his power of thought.

-Blaise Pascal, 1623-1662

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

 

Dear Friends,

Tangents:

On this day in 44 BC, roman “dictator for life,” Julius Caesar was assassinated by a group of conspirators during a trip to the Senate in what became known as the Ides of March.

A member of Roman historical society ‘Gruppo Storico Romano’ prepares to take part in a re-enactment of the ‘Ides of March,’ known also as the date on which Julius Caesar was assassinated in 44 BC, in downtown Rome. Tony Gentile/Reuters

Market Closes for March 15^th, 2013

Market  Index	Close	Change
Dow  Jones	14514.11	-25.03    -0.17%
S&P 500	1560.70	-2.53    -0.16%
NASDAQ	3249.067	-9.862    -0.30%
TSX	12830.03	+30.12
		+0.24%

International Markets

Market  Index	Close	Change
NIKKEI	12560.95	+179.76
		+1.45%
HANG  SENG	22533.11	-86.07
		-0.38
SENSEX	19427.56	-142.88
		-0.73%
FTSE 100	6489.65	-39.76
		-0.61%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.897	1.949
CND.   30 Year Bond	2.595	2.625
U.S.   10 Year Bond	1.9895	2.0296
U.S.   30 Year Bond	3.2115	3.2388

Currencies

BOC Close	Today	Previous
Canadian $	0.98092	0.97832
US   $	1.01945	1.02216
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33342	0.74995
US  $	1.30798	0.76454

Commodities

Gold	Close	Previous
London Gold   Fix	1591.95	1590.75
Oil	Close	Previous
WTI Crude Future	93.45	93.03
BRENT	111.43	110.24

Market Commentary:

Canada

By Eric Lam

March 15 (Bloomberg) — Canadian stocks increased for a second day as rising oil and gas prices sent energy producers higher.

Canadian Natural Resources Ltd. and Suncor Energy Inc. advanced at least 0.5 percent, as the price of crude rose to a three-week high. Encana Corp., the nation’s largest natural gas producer, and Crew Energy Inc., an oil and gas company, rose more than 1.4 percent as natural gas rallied to a 16-week high.

Pacific Rubiales Energy Corp. dropped 2.4 percent as a Salman Partners Inc. analyst lowered his rating for the stock.

The Standard & Poor’s/TSX Composite Index rose 30.12 points, or 0.2 percent, to 12,830.03 at 4 p.m. in Toronto. The benchmark Canadian equity index fell less than 0.1 percent this week, snapping a string of three weekly gains. The S&P/TSX has added 3.2 percent this year.

“The market today is reflecting higher commodity prices,” said Michael O’Brien, director and fund manager with TD Asset Management Inc. in Toronto. He manages about C$3 billion ($3 billion). “It’s been helping the gassy and oily names react positively.”

West Texas Intermediate crude climbed 0.5 percent to $93.45 a barrel, as the dollar weakened and inventories fell at a major storage hub. The U.S. benchmark settled at its highest since Feb. 20. Natural gas rose 1.6 percent to $3.872 per million British thermal units on speculation that a late cold blast in the East will boost heating demand. Gas capped four straight weekly gains and settled at the highest since Nov. 23.

Energy shares rose the most in the S&P/TSX, advancing 1 percent as a group. Half of the 10 groups in the benchmark index increased. Trading volume was 55 percent higher than the 30-day average.

Canadian Natural Resources increased 0.9 percent C$33.55.

Suncor Energy added 0.5 percent to C$31.67.

Encana rose 1.5 percent to C$20.73. Crew Energy increased 7.5 percent to C$7.

Colossus Minerals jumped 8.6 percent to C$3.15, and Torex Gold climbed 5.6 percent to C$1.88. Gold rose 0.1 percent to settle at $1,592.60 an ounce in New York. The metal has added 1 percent this week amid rising demand for a hedge against inflation.

Pacific Rubiales lost 2.4 percent to C$22.84 after Justin Anderson, analyst with Salman Partners, lowered the stocks rating to hold from buy and decreased his price target to C$25 from C$32.

Latin America’s largest non-state oil producer by market capitalization yesterday reported adjusted earnings of 13 cents a share, lower than the 60 cents expected from seven analysts surveyed by Bloomberg.

US

By Sarah Pringle

March 15 (Bloomberg) — U.S. stocks fell, sending the Dow Jones Industrial Average lower for the first time in 11 days, as a report showed consumer confidence unexpectedly fell in March.

JPMorgan Chase & Co. lost 1.9 percent after a Senate panel said it hid losses and dodged regulators. Financial stocks reversed earlier losses in the wake of Federal Reserve stress tests, as Bank of America Corp. and Morgan Stanley added at least 3.5 percent. Carnival Corp. fell 2.2 percent after trimming its earnings forecast. DirectTV rose 4.5 percent after pulling out of a bidding war for Vivendi SA’s GVT division.

The Standard & Poor’s 500 Index fell 0.2 percent to 1,560.70 at 4 p.m. in New York, trimming its weekly gain to 0.6 percent. The Dow Jones Industrial Average slid 25.03 points, or 0.2 percent, to 14,514.11. The 30-stock gauge rose 0.8 percent this week. About 8.5 billion shares traded hands on U.S. exchanges today, 34 percent above the three-month average, ahead of the expiration of futures and options contracts in a process known as quadruple witching. Today also marked the biggest day for volume so far this year, Bloomberg data show.

“This is a market that is digesting, it’s a market that is in watchful wait mode, and waiting either to continue this pullback or getting ready for the next leg,” Quincy Krosby, a market strategist for Newark, New Jersey-based Prudential Financial Inc., which oversees more than $1 trillion of assets, said in a phone interview. “It’s healthy to have these gaps between run-ups.”

The S&P 500 climbed yesterday to within two points of its record closing level of 1,565.15 set in October 2007. The gauge has more than doubled from its bottom in 2009, fueled by corporate earnings that topped estimates and monetary stimulus from the Federal Reserve. The Dow set an all-time high for the eighth day in a row yesterday.

Equities declined today as the Thomson Reuters/University of Michigan preliminary sentiment index for March fell to 71.8 from 77.6 in February. The gauge was projected to increase to 78, according to the median estimate of 67 economists surveyed by Bloomberg.

Industrial production rose 0.7 percent in February, exceeding the median projection in a Bloomberg survey, figures from the Federal Reserve showed today in Washington. Separate data showed manufacturing in the New York region expanded for a second month in March and industry managers grew more optimistic about the future.

A Bloomberg gauge of U.S. airlines slid 1.2 percent, as all 10 of its members retreated. Delta Air Lines Inc. dropped 1.7 percent to $16 and U.S. Airways Group Inc. fell 1.7 percent to $15.98. The airlines’ ratings were cut to market perform from outperform by Savanthi Syth, an equity analyst at Raymond James.

Banks advanced the most out of 24 S&P groups, erasing earlier losses. Wells Fargo & Co. rose 3.3 percent to $38.20, its highest level since September 2008, and Fifth Third Bancorp added 1.5 percent to $16.61.

Bank of America gained 3.8 percent to $12.57, for the largest increase in the Dow. The second-largest U.S. lender won the Fed’s approval to buy back as much as $5 billion in stock, the firm’s first repurchase since the financial crisis. The bank said it can also redeem $5.5 billion in preferred shares.

Morgan Stanley added 3.5 percent to $23.59. The owner of the world’s biggest brokerage got permission to buy the remaining 35 percent of its wealth-management venture with Citigroup Inc. after passing the Fed’s annual stress tests.

Discover Financial Services rose 3 percent to $44.14, an all-time high. The credit-card issuer approved a $2.4 billion stock buyback and boosted its quarterly dividend to 20 cents from 14 cents.

JPMorgan fell 1.9 percent, the most in the Dow, to $50.02.

Goldman Sachs Group Inc. rose 0.5 percent to $154.84, reversing an earlier loss. The world’s biggest trading firms must submit new capital plans to regulators to address weaknesses the Fed found in their planning processes.

Separately, a Senate investigation found that JPMorgan Chief Executive Officer Jamie Dimon misled investors and dodged regulators as losses escalated on a “monstrous” derivatives bet last year.

Phone companies and consumer-staples shares retreated the most in the S&P 500 among 10 groups, losing at least 0.5 percent. Verizon Communications Inc. fell 1 percent to $48.02 and AT&T Inc. slid 1.2 percent to $36.43.

Carnival slumped 2.2 percent to $34.95. The cruise operator beset by mishaps at sea this year cut its annual earnings forecast, reflecting costs from an engine fire that crippled the Carnival Triumph last month.

Boeing Co. gained 2.1 percent to $86.43, its highest level in almost five years. The company said safety upgrades to the 787 Dreamliner’s battery systems may allow commercial flights to restart within weeks, ending a two-month grounding of the composite-plastic fleet.

Freeport-McMoRan Copper & Gold Inc. climbed 1.9 percent to $33.80. Goldman Sachs raised its rating on the the world’s second-largest copper miner to buy from neutral.

DirectTV surged 4.5 percent to a record $54.99. The largest U.S. satellite-TV provider pulled out of bidding for Vivendi’s Brazilian phone and Internet unit, GVT, forgoing an option to add more services in South America.

U.S. economic growth will have to accelerate to “ridiculously strong levels” to justify any advance for the S&P 500 above 1,600, said Jim O’Neill, chairman of Goldman Sachs Asset Management.

O’Neill, who coined the term BRIC in describing the rise of Brazil, Russia, India and China, has an estimate of 1,575 for the U.S. equity benchmark this year. The world’s biggest economy is forecast to grow 1.9 percent in 2013 and 2.7 percent next year.

“In order to justify the S&P above 1,600, we’d have to see growth expectations go to something like 4 percent and beyond,” O’Neill said in a Bloomberg Television interview in Singapore.

“I don’t see persistent upside from those kind of levels without some more evidence that the economy would be growing by ridiculously strong levels.”

Have a wonderful weekend everyone.

 

Be magnificent!

 

A civilization must be judged and assessed, not by the level of power it has reached,

but by how it develops and expresses a love of humanity

through  its laws and institutions.

The first and last criterion one must submit to is:

Is it recognizable, and to what level, that man is more a spirit than a machine?

Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

Character is power.

-Booker T. Washington, 1856-1915

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 am reading a book right now entitled Wonder by R. J. Palacio.  The narrator of the story is a young boy, a fifth grader, whose teacher gives his class a precept for every month.  Last night I was reading a chapter where the teacher told his class that their precept for the month was:

YOUR DEEDS ARE YOUR MONUMENTS

“He told us that this was written on the tombstone of some Egyptian guy that died thousands of years ago….Our homework assignment was to write a paragraph about what we thought the precept meant or how we felt about it.

This is what I wrote:

This precept means that we should be remembered for the things we do.  The things we do are the most important things of all.  They are more important things of all.  They are more important than what we say or what we look like.  The things we do outlast our mortality.  The things we do are like monuments that people build to honor heroes after they’ve died.  They’re like the pyramids that the Egyptians built to honor the pharaohs.  Only instead of beings made out of stone, they’re made out of memories people have of you.  That’s why your deeds are like your monuments.  Built with memories instead of with stone.”

Mahpiya Benoist climbs up between to sections of a sculpture in Salina, Kan. Ama Benoist, Mahpiya’s mom, said she brought her children to the park because ‘It’s a nice day and we’re tired of being inside, and I didn’t want them watching any more TV.’ The sculpture is made from lumber, plywood, chicken wire, and 20,000 pounds of newspaper. Tom Dorsey/Salina Journal/AP

Horses jump a fence during the Novices’ Steeple Chase race at the Cheltenham Festival horse racing meet in Gloucestershire, western England. Stefan Wermuth/Reuters

Market Closes for March 14^th, 2013

Market  Index	Close	Change
Dow  Jones	14539.14	+83.86    +0.58%
S&P 500	1563.23	+8.71    +0.56%
NASDAQ	3258.929	+13.812    +0.43%
TSX	12799.91	+55.80
		+0.44%

International Markets

Market  Index	Close	Change
NIKKEI	12381.19	+141.53
		+1.16%
HANG  SENG	22619.18	+62.53
		+0.28
SENSEX	19570.44	+207.89
		+1.07%
FTSE 100	6529.41	+47.91
		+0.74%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.949	1.916
CND.   30 Year Bond	2.625	2.605
U.S.   10 Year Bond	2.0296	2.0209
U.S.   30 Year Bond	3.2388	3.2181

Currencies

BOC Close	Today	Previous
Canadian $	0.97832	0.97283
US   $	1.02216	1.02792
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33030	0.75171
US  $	1.30146	0.76837

Commodities

Gold	Close	Previous
London Gold   Fix	1590.75	1589.15
Oil	Close	Previous
WTI Crude Future	93.03	92.52
BRENT	110.24	109.29

Market Commentary:

Canada

By Eric Lam

March 14 (Bloomberg) — Canadian stocks rose, after falling the most since November yesterday, as energy shares gained following an unexpected decline in U.S. jobless claims that sent oil prices higher.

Canadian Natural Resources Ltd. and Advantage Oil & Gas Ltd. increased at least 4.4 percent, as crude rose to a three- week high. First Quantum Minerals Ltd. advanced 3.2 percent for its highest close in two months, after an analyst raised his rating for the stock. Quebecor Inc. declined the most in 19 months following the media company’s announcement of lower-than- forecast earnings and a management shuffle.

The Standard & Poor’s/TSX Composite Index rose 55.80 points, or 0.4 percent, to 12,799.91 at 4 p.m. in Toronto. The S&P/TSX has risen 3 percent this year, underperforming every developed market in the world except Hong Kong and Italy.

Trading volume was 8 percent above the 30-day average.

“Energy prices are firming up here, which is helping the TSX today, but without stronger metals and Chinese performance it’s hard to get too excited,” said Youssef Zohny, a portfolio manager with Richardson GMP Ltd., on the phone from Vancouver.

Richardson GMP manages about C$15 billion ($15 billion).

Oil rose 0.6 percent to $93.03 in New York, erasing earlier losses of as much as 0.6 percent for its highest settlement since Feb. 25. The U.S. Labor Department said first-time unemployment claims fell by 10,000 to 332,000 last week. The median forecast of 49 economists surveyed by Bloomberg called for an increase to 350,000.

Energy shares contributed most to gains in the S&P/TSX, rising 1.1 percent as a group. Six of the benchmark equity index’s 10 groups advanced.

Canadian Natural Resources climbed 4.4 percent to C$33.25, and Advantage Oil & Gas gained 6.5 percent to C$3.46.

PetroBakken Energy Ltd. soared 11 percent to C$9.24, the highest since Jan. 23. The oil producer’s parent company, Petrobank Energy & Resources Ltd., soared 13 percent to 70 Canadian cents.

Yamana Gold Inc. rose 2 percent to C$14.91, and Kinross Gold Corp. added 1.9 percent to C$8.12. Gold rose for the fifth time in six sessions, adding 0.1 percent to settle at $1,590.70 an ounce, erasing earlier losses of as much as 0.8 percent.

First Quantum Minerals gained 3.2 percent to C$21.83, its highest close since Jan. 4. Alex Terentiew, analyst with Raymond James Ltd., raised his rating for the stock to outperform from market perform and increasing his price target to C$25 from C$22.

The mining company said March 12 it “anticipates being in a position to complete” its C$4.86 billion hostile takeover offer for Inmet Mining Corp. after about 61 percent of Inmet holders tendered their stock to First Quantum. Inmet rose 1.6 percent to C$71.94.

Quebecor, a cable operator and newspaper publisher, plunged 5.2 percent to C$43.66, the biggest decline since August 2011.

The Montreal-based company said adjusted profit of 89 Canadian cents a share fell short of the C$1.13 average estimate of 12 analysts surveyed by Bloomberg. Quebecor also said President and Chief Executive Officer Pierre Karl Peladeau will become vice chairman of the firm. Robert Depatie will replace him in both roles, effective May 8.

US

By Sarah Pringle

March 14 (Bloomberg) — U.S. stocks climbed, sending the Standard & Poor’s 500 Index within two points of its record high, as government data showed jobless claims unexpectedly dropped last week to the lowest level in almost two months.

Energy shares rallied, as Chevron Corp. jumped 1.4 percent and Chesapeake Energy Corp. added 5.2 percent. Ryland Group Inc. and PulteGroup Inc. rose at least 3.5 percent, pacing gains among homebuilders. JPMorgan Chase & Co. and Goldman Sachs Group Inc. each tumbled 2 percent after the close of regular trading as the Federal Reserve said they must submit new capital plans to regulators to address weaknesses in their planning processes.

The S&P 500 rose 0.6 percent to 1,563.23 at 4 p.m. in New York, its highest level since October 2007. The Dow Jones Industrial Average climbed 83.86 points, or 0.6 percent, to 14,539.14. The 30-stock gauge reached another all-time high and extended its gains to a 10th straight day, the longest winning streak since 1996. About 6 billion shares changed hands on U.S. exchanges today, 4.6 percent below the three-month average.

“It’s a little bit more fuel on the fire,” Jeffrey Davis, chief investment officer at Lee Munder Capital Group, said in a phone interview. The Boston-based firm oversees $5 billion.

“It’s been a long time since you’ve seen momentum both on the market and technical front being supported by economic fundamentals. In spite of the fact the market’s not as cheap as it once was, it’s looking like the rally should continue.”

The S&P 500 is less than two points away from its record closing level of 1,565.15 set in October 2007. The gauge has more than doubled from its bottom in 2009, fueled by corporate earnings that topped estimates and monetary stimulus from the Fed. The Dow topped yesterday’s record for its eighth straight closing high.

The S&P 500 is valued at 15.4 times reported earnings, a 22-month high, according to data compiled by Bloomberg. That’s still 6.7 percent below an average of 16.6 over the last decade.

The Dow is trading at a price-to-earnings ratio of 14.2, the highest level in almost two years and 10 percent below its 10- year average of 15.8.

“Hitting a new high is going to send a signal to all of the fence-sitters that maybe it’s time to take a fresh look at equities,” Alan Gayle, senior strategist at RidgeWorth Capital Management, said over the phone. The Richmond, Virginia-based firm oversees about $48 billion. “The U.S. economy is reasserting itself in a leadership role in terms of overall economic momentum. The housing market is showing recovery, so this is all good for wealth. The decline in jobless claims suggests that the job market is continuing to improve.”

The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, fell 4.5 percent to 11.30, the lowest level since February 2007.

First-time jobless claims fell by 10,000 to 332,000 in the week ended March 9, the fewest since mid-January, according to data today from the Labor Department in Washington. The median forecast of 49 economists surveyed by Bloomberg called for an increase to 350,000. The four-week average declined to a five- year low.

In Europe, stocks advanced to a 4 1/2-year high before the region’s leaders begin a two-day Brussels summit. Euro-area finance ministers meet separately tomorrow to discuss a bailout for Cyprus.

After financial markets closed in New York, the Fed said Goldman Sachs and JPMorgan “exhibited weaknesses” in their capital planning that were “significant enough to require immediate attention.”

The central bank didn’t object to the two New York-based firms’ capital plans, and approved 14 other banks’ proposals, the Fed said in a statement. Capital plans submitted by Ally Financial Inc. and BB&T Corp. were rejected, while American Express Co. had to revise its submission to win approval.

BB&T lost 3.2 percent to $30.72 and Goldman Sachs fell 2 percent to $150.89 in extended trading as of 6:02 p.m. in New York. Bank of America Corp. jumped 3.5 percent after winning approval to buy back as much as $5 billion in stock in its first repurchase program since the financial crisis.

JPMorgan lost 2 percent to $49.98 after hours. A Senate probe found that Chief Executive Officer Jamie Dimon sought to hide escalating trading losses that surpassed $6.2 billion by misleading investors and dodging regulators as the position deteriorated last year. JPMorgan also announced plans to buy back up to $6 billion in shares and boost its quarterly dividend to 38 cents a share from 35 cents.

Energy producers, phone and technology companies climbed the most among 10 groups in the S&P 500 during regular trading, rising at least 0.7 percent. Chevron gained 1.4 percent to a record $120. Chesapeake Energy surged 5.2 percent to $22.52 for the biggest increase in the benchmark index.

An S&P gauge of homebuilders rose 2.1 percent, as all 11 members advanced. Ryland Group added 4.3 percent to $40.18, while PulteGroup jumped 3.5 percent to $20.56.

Apple Inc. rose 1 percent to $432.50. BTIG Research analyst Walter Piecyk raised his rating on the company to buy from neutral, citing opportunity from yet to be announced products and expectation the iPad and iPhone maker will return to per share earnings growth in 2014.

CBS Corp. climbed 2.2 percent to its highest level since 2000 at $46.95. The most-watched U.S. television network announced plans to offer a full-episode streaming app for the iPad and iPhone.

Verizon Communications Inc. jumped 1.1 percent to $48.48.

Redbox Instant, the movie-streaming venture by Coinstar Inc. and Verizon, began commercial service today, vying with Netflix Inc. and Amazon.com Inc. for online viewers. Netflix fell 2.1 percent to $188.37.

Amazon dropped 3.4 percent to $265.74 after JPMorgan Chase & Co. lowered its recommendation on the shares to neutral from overweight, saying some of the online retailer’s key business lines indicate more material deceleration in 2013 gross profit.

EBay Inc., operator of the world’s largest online marketplace, climbed 1.6 percent to $51.80 after Evercore Partners Inc. raised its rating on the company to overweight from equalweight.

E*Trade Financial Corp. fell 8.2 percent, the most in the S&P 500, to $10.85. Citadel LLC, its largest shareholder, said late yesterday that it will sell the rest of its equity stake.

Citadel asked E*Trade in 2011 to hire a bank to review strategic alternatives and take immediate action to maximize shareholder value after “catastrophic losses” that had driven the shares down 97 percent since 2007.

Smith & Wesson Holding Corp. sank 2.7 percent to $9.26 and Sturm Ruger & Co. dropped 2.7 percent to $54.30. The biggest publicly traded gunmakers in the U.S. retreated after the Senate Judiciary committee approved a measure to ban assault weapons.

Merck & Co., the second-biggest U.S. drugmaker, slumped 0.7 percent to $44.27. Diabetes drugs including Merck’s Januvia and Bristol-Myers Squibb Co.’s Byetta are being scrutinized by U.S. regulators for a potential link to pancreatic cancer.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

True civilization does not mean congregating in cities and living a foolish life,

but going Godward, controlling the senses, and thus becoming the ruler in this house of the Self.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

Intelligence is the ability to adapt to change.

-Stephen Hawking, 1942-

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

 

Tel: 778.430.5808

(C): 250.881.0801

Toll Free: 1.877.430.5895

Fax: 778.430.5828

www.carolannsteinhoff.com

 

 

Dear Friends,

Tangents:

Nothing great is created suddenly, any more than a bunch of grapes or a fig.  If you tell me that you desire a fig, I answer that there must be time.  Let it first blossom, then bear fruit, then ripen. –Epictetus, 55-135 AD

A bee collects pollen from a sunflower in a field at the southern Indian state of Tamil Nadu, India. Babu/Reuters

A woman cycles as she carries baskets to sell in a market near Lapdaung mountain in Sarlingyi township, Myanmar. Soe Zeya Tun/Reuters

Market Closes for March 13^th, 2013

Market  Index	Close	Change
Dow  Jones	14455.28	+5.22    +0.04%
S&P 500	1554.52	+2.04    +0.13%
NASDAQ	3245.117	+2.796    +0.09%
TSX	12744.11	-134.49
		-1.04%

International Markets

Market  Index	Close	Change
NIKKEI	12239.66	-75.15
		-0.61%
HANG  SENG	22556.65	-333.95
		-1.46
SENSEX	19362.55	-202.37
		-1.03%
FTSE 100	6481.50	-29.12
		-0.45%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.916	1.908
CND.   30 Year Bond	2.605	2.608
U.S.   10 Year Bond	2.0209	2.0156
U.S.   30 Year Bond	3.2181	3.2139

Currencies

BOC Close	Today	Previous
Canadian $	0.97283	0.97460
US   $	1.02792	1.02607
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33228	0.75059
US  $	1.29609	0.77155

Commodities

Gold	Close	Previous
London Gold   Fix	1589.15	1593.55
Oil	Close	Previous
WTI Crude Future	92.52	92.54
BRENT	109.29	110.37

Market Commentary:

Canada

By Lindsey Rupp

March 13 (Bloomberg) — Canadian stocks fell the most since November, snapping a three-day advance in the benchmark index, as energy and raw-materials shares dropped after oil and gold prices slumped.

Encana Corp. and Savanna Energy Services Corp. lost more than 1.2 percent after the International Energy Association cut its 2013 global demand estimate for oil and U.S. inventories unexpectedly rose. New Gold Inc. and Iamgold Corp. slid at least 5.5 percent as gold fell for the first time in five days.

BlackBerry gained 11 percent after receiving the biggest order in its history.

The Standard & Poor’s/TSX Composite Index declined 134.49 points, or 1 percent, to 12,744.11 at 4 p.m. in Toronto. The gauge has gained 2.5 percent this year and closed yesterday at its highest level since July 2011. Trading volume was 5.1 percent lower than the 30-day average.

“Certainly we had a larger-than-expected build in crude- oil inventories, so that’s a negative,” Peter Buchanan, Toronto-based senior economist at CIBC World Markets, said in a telephone interview today.

Raw-materials stocks fell the most in the S&P/TSX, losing 2.1 percent as a group. Energy producers slid 1.2 percent, as eight of the gauge’s 10 groups retreated.

Iamgold fell 8.9 percent to C$6.86 and New Gold dropped 5.5 percent to C$9.48. Gold declined 0.2 percent to settle at $1,588.40 an ounce in New York.

Bullion ended its longest rally since August after a deputy Chinese central bank governor said the country may limit its gold holdings to 2 percent of total foreign exchange reserves. A better-than-estimated U.S. retail sales report increased optimism about the world’s largest economy and the dollar rose.

Savanna, a provider of oil-well and drilling services, slid 3.3 percent to C$6.75, its lowest since December. Encana dropped 1.2 percent to C$19.50. TransCanada Corp. fell 1.7 percent to C$48.20 after Canadian heavy oil weakened on the spot market after strengthening more than $10 a barrel in the previous six days.

Oil erased gains after the Energy Information Administration said U.S. inventories climbed an eighth straight week. Earlier, Paris-based IEA trimmed its 2013 global demand forecast by 60,000 barrels a day to 90.6 million. Crude fell 2 cents to settle at $92.52 a barrel on the New York Mercantile Exchange, after reversing an advance of as much as 0.9 percent.

BlackBerry, formerly known as Research In Motion Ltd., surged 11 percent to C$16.45, the highest in a month. The company said one of its “established partners” placed an order for 1 million of its new BlackBerry 10 smartphones.

US

By Sarah Pringle

March 13 (Bloomberg) — U.S. stocks rose, sending the Dow Jones Industrial Average to its longest rally since 1996, as data showing retail sales increased in February by the most in five months bolstered optimism in the world’s largest economy.

Best Buy Co. and Abercrombie & Fitch Co. climbed at least 2.7 percent as retailers advanced. Netflix Inc. jumped 5.6 percent after announcing new social features integrated with Facebook Inc. International Business Machines Corp. gained 0.7 percent to a record. BlackBerry surged 8.2 percent after announcing its largest purchase order ever.

The Standard & Poor’s 500 Index rose 0.1 percent to 1,554.52 at 4 p.m. in New York. The Dow added 5.22 points, or less than 0.1 percent, to 14,455.28. The 30-stock gauge reached another record high and capped its ninth straight gain, the longest winning streak since November 1996. About 5.5 billion shares traded hands on U.S. exchanges today, 13 percent below the three-month average.

“All the economic data is incrementally positive,” Dan Veru, chief investment officer at Palisade Capital Management LLC, said over the phone. The Fort Lee, New Jersey-based firm manages about $3.6 billion. “Even if we do have a pause in the market or a correction, how deep can that correction be? Because I think there’s a lot of people, a lot of investors, waiting to get into the market.”

The S&P 500 is about 11 points from its record of 1,565.15 set in October 2007. The benchmark index fell yesterday, ending a seven-day winning streak. The gauge has more than doubled from its bottom in 2009 as the rally was fueled by corporate earnings that topped estimates and monetary stimulus from the Federal Reserve. The Dow has set record closing highs for seven straight days.

While the S&P 500 remains less than one percent below its record, the Russell 2000 Index of smaller companies advanced 0.4 percent to an all-time high of 943.90 and the Dow Jones Transportation Average climbed 1.6 percent to a record 6,232.59 today. The Morgan Stanley Cyclical Index also topped its previous high, adding 0.5 percent to 1,171.95.

The S&P 500 is valued at 15.4 times reported earnings, a 22-month high, according to data compiled by Bloomberg. That’s still 7.2 percent below an average of 16.6 over the last decade.

The Dow is trading at a price-to-earnings ratio of 14.1, the highest level in almost two years and 11 percent below its 10- year average of 15.8.

U.S. equities rose today as Commerce Department figures showed a 1.1 percent advance in retail sales in February, more than forecast and followed a revised 0.2 percent gain in January. The median projection in a Bloomberg survey called for a 0.5 percent advance. Sales excluding the volatile categories of automobiles and gasoline climbed 0.4 percent.

Progress in the job market is shoring up sentiment and spurring demand at merchants including Costco Wholesale Corp., easing the burden of a two percentage-point increase in the levy that funds Social Security. The boost to household wealth from home values and stock prices has also helped consumers maintain spending in the face of higher fuel prices.

“The retail number was nice and that’s helping lessen concern that high gas prices and taxes would combine to slow down consumer spending,” Erick Maronak, chief investment officer at Victory Capital Management Inc., said in a phone interview. The New York-based firm oversees about $3 billion. “On balance things look pretty good.”

Best Buy rallied 3.3 percent to $20.96, pacing gains among retailers amid today’s sales data. Abercrombie & Fitch added 2.7 percent to $49.77 and Nike Inc. rose 2.5 percent to $54.85.

Netflix jumped 5.6 percent to $192.36. The online video service began offering U.S. subscribers the ability to peer into each others’ digital movie libraries in a long-awaited partnership with Facebook. The features will become available starting today, the Los Gatos, California-based company said in a statement.

IBM gained 0.7 percent to $212.06, the most in the Dow, to a record $212.06. The largest technology services provider has risen 11 percent this year as the company boosted earnings per share, divested underperforming units and moved into higher margin software businesses such as data analysis.

BlackBerry surged 8.2 percent to $15.65. The Canadian smartphone maker, formerly known as Research In Motion Ltd., said one of its “established partners” has placed an order for 1 million BlackBerry 10 phones. The new phones are the linchpin of its comeback strategy.

Walgreen Co. rallied 4.2 percent to $42.78, its highest level since July 2011, as UBS raised its rating on the drugstore chain to buy from neutral.

Phone companies and commodity producers retreated the most out of 10 S&P 500 groups. Valero Energy Corp. fell 4.7 percent to $43.42. Cliffs Natural Resources Inc. sank 4.9 percent to $22.73 for the biggest decline in the benchmark index. U.S. Steel Corp. slid 3.1 percent to $20.04.

Spectrum Pharmaceuticals Inc., a maker of cancer medicines, plunged 37 percent to $7.79 as the Henderson, Nevada-based drugmaker said 2013 revenue will be $160 million to $180 million. Analysts had anticipated total sales of $297 million, according to the average of five estimates compiled by Bloomberg.

Express Inc. dropped 3.2 percent to $18.25. The clothing retailer forecast first-quarter earnings of 38 cents a share at most, less than the average analyst estimate of 46 cents. Its full-year earnings forecast also fell short of analyst expectations.

The rally that pushed the S&P 500 toward a record is poised to pause after faltering yesterday, judging by trading patterns, according to DZ Bank AG.

The five-day relative-strength index for the benchmark, representing the number of trading days in a week, was 74.6 yesterday after reaching 84.8 the day before. The index measures the velocity of price changes to identify overbought or oversold conditions and turning points. Readings above 70 indicate prices will probably fall.

“The RSI is just starting to turn down,” said Andy Cossor, a Hong Kong-based strategist at Germany’s fourth-largest lender. “The S&P 500 has had a good run this year, and it looks as if it needs to take a breath.”

Have a wonderful evening everyone.

 

Be magnificent!

 

Humanity is not divided into airtight compartments

that inhibit going from one to the other.

And when one counts them in the thousands,

they will not be less linked one to the other.

Mahatma Gandhi, 1869-1948

As ever,

 

Carolann

 

Your attitude, not your aptitude,

will determine your altitude.

-Zig Ziglar, 1926-2012

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