Month: April 2013

Dear Friends,

Tangents: Arbor Day today.

Out beyond ideas of wrong-doing and right-doing,

there is a field.  I’ll meet you there.

When the soul lies down in that grass,

the world is too full to talk about.

Ideas, language, even the phrase “each other”

doesn’t make any sense.

-Jalaluddin Rumi

Jerry Seinfeld turns 58 years old today.

Also on this day, in,

1967, Aretha Franklin debuts her single Respect which goes to number one on the pop and R & B charts and earns her 2 Grammys.

1958, Broadway musical My Fair Lady with Julie Andrews opened in London and the first month’s performances were sold out before opening night.

1429, 17-year old Joan of Arc relieves the French forces at Orleans in their battle against the British.

2012, Prince William married Kate Middleton.

Photos of the day – April  29th, 2013

A bee is covered with pollen as it sits on a blade of grass on a lawn in Klosterneuburg. The European Commission said it would go ahead and impose a temporary ban on three of the world’s most widely used pesticides because of fears they harm bees, despite EU governments failing to agree on the issue. Heinz-Peter Bader/Reuters

A man wearing shades displays a t-shirt depicting Dutch Queen Beatrix in a souvenirs shop in Amsterdam. The Netherlands is preparing for Queen’s Day on April 30, which will also mark the abdication of Queen Beatrix and the investiture of her eldest son Willem-Alexander. Cris Toala Olivares/Reuters

Market Closes for April 29th, 2013

Market  Index	Close	Change
Dow  Jones	14818.75	+106.20    +0.72%
S&P 500	1593.61	+11.37    +0.72%
NASDAQ	3307.020	+27.757    +0.85%
TSX	12312.67	+92.47
		+0.76%

International Markets

Market  Index	Close	Change
NIKKEI	13884.13	-41.95
		-0.30%
HANG  SENG	22580.77	+33.06
		+0.15%
SENSEX	19387.50	+100.78
		+0.52%
FTSE 100	6458.02	+31.60
		+0.49%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.699	1.705
CND.   30 Year Bond	2.365	2.375
U.S.   10 Year Bond	1.6650	1.6633
U.S.   30 Year Bond	2.8732	2.8611

Currencies

BOC Close	Today	Previous
Canadian $	0.98848	0.98280
US   $	1.01165	1.01750
Euro Rate  1 Euro=		Inverse
Canadian   $	1.32537	0.75450
US  $	1.31011	0.76329

Commodities

Gold	Close	Previous
London Gold   Fix	1475.07	1462.09
Oil	Close	Previous
WTI Crude Future	94.50	93.00
BRENT	104.31	103.05

Market Commentary:

Canada

By Eric Lam

April 29 (Bloomberg) — Canadian stocks rose as commodities from oil to gold rallied amid optimism over central-bank stimulus and data showed U.S. consumer spending climbed more than forecast in March.

Valeant Pharmaceuticals International Inc. gained 3.3 percent as the drugmaker is said to have been in talks to merge with Actavis Inc. Suncor Energy Inc. increased 1.2 percent as crude touched a two-week high. Semafo Inc. and Detour Gold Corp. surged at least 7.7 percent as gold rallied. Endeavour Silver Corp. advanced 1.8 percent after announcing plans to cut costs due to lower metal prices.

The Standard & Poor’s/TSX Composite Index rose 92.47 points, or 0.8 percent, to 12,312.67 at 4 p.m. in Toronto. The benchmark equity gauge has fallen 3.4 percent in April, heading for the biggest monthly drop since May 2012. Trading volume was 37 percent lower than the 30-day average.

“The commodities were all oversold, the TSX is riding the bounce,” said Keith Richards, a fund manager with ValueTrend Wealth Management in Barrie, Ontario. He helps manage about C$100 million ($99 million). “There’s very little in the way of gold reaching $1,550.”

Crude and gold prices advanced on optimism that central banks will decide to maintain economic stimulus in their meetings this week to bolster growth. Economists surveyed by Bloomberg said European Central Bank policy makers may cut interest rates, while the U.S. Federal Reserve will consider renewing its commitment to bond-buying at a two-day meeting starting tomorrow.

Consumer spending in the U.S., the biggest oil-consuming nation, rose more than projected in March, a Commerce Department report showed today.

Energy, financial and raw-materials stocks contributed most to gains in the S&P/TSX as all 10 industries advanced. The S&P/TSX Energy Index rallied 0.9 percent.

Suncor, Canada’s largest oil producer, rose 1.2 percent to C$29.63 and Canadian Natural Resources Ltd. gained 1.3 percent to C$29.96 as oil for June delivery advanced 1.6 percent to settle at $94.50 a barrel in New York, highest since April 10.

Athabasca Oil Corp. rallied 3.8 percent to C$7.42, rebounding from an April 23 record low after a Canadian aboriginal group that has opposed a planned sale of the company’s Dover oil-sands project to Beijing-based PetroChina Co. said the impasse can be overcome.

The Fort McKay First Nation opposes the Dover development in Alberta due to environmental concerns and forced a regulatory hearing to consider the project. Athabasca needs regulatory approval before it can sell its stake to PetroChina for C$1.32 billion in cash.

Endeavour Silver gained 1.8 percent to C$5.19 after announcing a plan to fire workers and defer planned spending to deal with falling precious metals prices.

“It pays to be prudent at times like this,” Bradford Cooke, chief executive officer with Endeavour, said in a statement.

Detour Gold soared 7.8 percent to C$12.22 and Semafo jumped 7.7 percent to C$1.95 as the price of gold gained 0.9 percent to settle at $1,467.40. The metal rallied 4.2 percent last week after gold plunged into a bear market this month.

Valeant Pharmaceuticals, based in Montreal, climbed 3.3 percent to C$76.85. Merger talks with Actavis, the largest generic-drug maker in the U.S., have stalled due to a disagreement over price, according to people familiar with the matter.

The generic-drug makers had sought to announce a deal as soon as today before Actavis balked at the premium offered by Valeant, said one of the people, who asked not to be identified because the discussions aren’t public. While the talks have halted for now, they may become active again, another person said.

US

By Lu Wang and Whitney Kisling

April 29 (Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index advancing to a record high, as pending sales of homes climbed amid optimism central banks will maintain stimulus plans.

Apple Inc. jumped 3.1 percent to pace a rally in technology shares. Tenet Healthcare Corp. surged 6.5 percent as hospitals will get a pay raise from the U.S. government for treating Medicare patients. Actavis Inc. and Valeant Pharmaceuticals International Inc. rose more than 3.8 percent as the companies are said to have been in merger talks. Moody’s Corp. gained the most in the S&P 500 after being part of a settlement with investors claiming inflated ratings.

The S&P 500 rose 0.7 percent to 1,593.61 at 4 p.m. in New York, topping a record close of 1,593.37 reached on April 11.

The Dow Jones Industrial Average increased 106.20 points, or 0.7 percent, to 14,818.75 today. More than 5.1 billion shares traded hands today on U.S. exchanges, or 19 percent below the three- month average.

“There’s just a positive tone to the market in part because recent lackluster economic trends have reinforced investors belief that the Federal Reserve will continue to press on the gas pedal,” Chad Morganlander, a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co., which oversees about $130 billion, said by telephone.

The S&P 500 has climbed 1.6 percent in April, poised for its sixth straight month of gains, the longest streak of advances since September 2009. The bull market in U.S. equities has entered its fifth year as the S&P 500 surged 136 percent from a 12-year low in 2009, driven by better-than-estimated corporate earnings and three rounds of monetary stimulus from the Federal Reserve.

The European Central Bank will cut its benchmark interest rate to a record low of 0.5 percent on May 2, according to the majority of economists in a Bloomberg survey, while the Fed may consider renewing its commitment to bond-buying at a two-day meeting starting tomorrow.

Equities rose today as figures from the National Association of Realtors showed the index of pending home sales increased 1.5 percent after a revised 1 percent decline the prior month that was larger than initially reported. Economists forecast a 1 percent increase, according to the median estimate in a Bloomberg survey.

Separate data showed consumer spending rose more than projected in March. Incomes increased less than forecast and inflation cooled to the lowest level in more than three years.

Nine S&P 500 companies report earnings today, including Express Scripts Holding Co. and Loews Corp. Of the 273 companies that have reported earnings so far this month, 74 percent exceeded analysts’ profit predictions, while 55 percent missed sales estimates, data compiled by Bloomberg show.

“We feel visibility on earnings is pretty darn good,” Paul Mangus, head of equity research and strategy at Wells Fargo Private Bank in Charlotte, North Carolina, said in a phone interview. His firm oversees $170 billion. “We are seeing some indications that earnings momentum is likely to pick up in future quarters.”

The Chicago Board Options Exchange Volatility Index, or VIX, rose 0.7 percent to 13.71. The gauge for options that are used to protect against losses in the S&P 500 reached a six-year low in March and is down 24 percent this year.

All 10 S&P 500 industry groups advanced as technology and commodity companies climbed the most, rising at least 0.9 percent. Apple jumped 3.1 percent, the most since Feb. 5, to $430.12. Microsoft Corp. surged 2.6 percent to $32.61 and Google Inc. increased 2.2 percent to $819.06. Hewlett-Packard Co. added 2.7 percent, the most in the Dow, to $20.50 and International Business Machines Corp. gained 2.5 percent to $199.15.

Tenet, the third-largest U.S. hospital company, jumped 6.5 percent to $43.84. HCA Holdings Inc., the largest publicly traded chain, climbed 5.5 percent to $40.37.

The U.S. Centers for Medicare and Medicaid Services plans to raise payments 0.8 percent beginning Oct. 1 for services that elderly and disabled patients receive after being admitted to hospitals, according to a regulatory proposal.

Moody’s climbed 8.3 percent to $59.69, the highest in almost six years. McGraw-Hill Cos., owner of Standard & Poor’s, advanced 2.8 percent to $53.45. Investors led by Abu Dhabi Commercial Bank and King County, Washington, agreed to drop their lawsuits claiming that the companies gave inflated grades on two structured investment vehicles.

Morgan Stanley rose 3.8 percent to $22.21 after settling claims brought by the investor group that it had acted negligent in conveying ratings that it should have known were inaccurate.

The Bloomberg U.S. Airlines Index rallied 1.1 percent.

United Continental Holdings Inc. increased 2.8 percent to $32 while Delta Air Lines Inc. rose 0.8 percent to $16.95.

The U.S. House passed legislation to end air-traffic controller furloughs, joining the Senate in letting the Federal Aviation Administration work around across-the-board budget cuts to end days of flight delays.

Actavis rose 4.6 percent to $105.58 and Valeant added 3.8 percent to $75.94. The generic-drug makers had sought to announce a merger as soon as today before Actavis balked at the premium offered by Valeant, said a person familiar with the matter, who asked not to be identified because the discussions aren’t public. The Financial Times reported April 27 that the talks had stalled.

Biogen Idec Inc. climbed 4.7 percent to a record $223.61.

The introduction of the company’s multiple sclerosis pill, Tecfidera, outstripped the initial sales of competing drugs from Novartis AG and Sanofi, suggesting the treatment may beat estimates for the year. Total prescriptions more than doubled during the third week of the launch to 730 from 332 the previous week, according to a Wells Fargo & Co. report.

Walt Disney Co. climbed 1.8 percent to $63, a record high.

The world’s largest entertainment company was boosted to buy from neutral by UBS AG.

Conceptus Inc. surged 20 percent to a record $30.96. The maker of a permanent contraception device agreed to be bought by Bayer AG for about $1.1 billion in cash, or $31 a share.

Roper Industries Inc. fell 3.8 percent to $118.68. The maker of products from medical imaging to refrigeration valves forecast second-quarter earnings of no more than $1.30 a share.

That trailed the average analyst estimate of $1.38 in a Bloomberg survey.

Eastman Chemical Co. slipped 1 percent to $68.27 after JPMorgan Chase & Co. cut the stock’s rating to neutral from overweight.

Expedia Inc. declined 4.3 percent, the most in the S&P 500, to $56.06. The stock has slumped 14 percent since lowering its 2013 earnings forecast on April 25, leaving it poised for the biggest two-day drop since 2011.

 

Have  a wonderful weekend everyone.

 

Be magnificent!

 

From Him woman was born; and from Her man was born.

From His mind the moon was born; from His eye the sun was born; from His breath the wind was born.

From His navel the atmosphere was born; from His head the sky was born;

and from His ear the four quarters of the sky were born.

Thus the universe was in order.

Rig Veda

As ever,

 

Carolann

 

One can never consent to creep when one feels

an impulse to soar.

–Helen Keller, 1880-1968

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: Full moon weekend!

Many composers, such as Beethoven and Tchaikovsky, required a long daily walk to keep their ideas flowing, writes Mason Currey, author of Daily Rituals: How Artists Work.  “The most extreme example is the French composer Erik Satie, who each morning would walk from his home in a Paris suburb to the city’s Montmartre district, a distance of about 10 kilometres.  There he would visit friends, work on his compositions in cafés, eat dinner and go out drinking –often missing the last train home, in which case he would walk back again, slipping into bed just before sunrise (and then getting up and walking back a few hours later).”  -Michael Kesterton, Globe & Mail, April 26^th, 2013.

If you can’t annoy somebody, there is little point in writing. –Kingsley Amis

Photos of the day – April  26th, 2013

People watch the full moon as it rises over the skyline of New York City near 42nd Street (r.), as seen across the Hudson River in Weehawken, New Jersey April 25th. Gary Hershorn/Reuters

A giant panda plays at a “panda kindergarten”, a refuge for baby pandas, inside Bifengxia giant panda base in Ya’an, Sichuan province, China, after an earthquake hit Lushan. According to local reports, more than half of the pandas in Bifengxia were resettled from Wolong panda base after an 7.9 earthquake in 2008. Reuters

Market Closes for April 26th, 2013

Market  Index	Close	Change
Dow  Jones	14712.55	+11.75    +0.08%
S&P 500	1582.24	-2.92    -0.18%
NASDAQ	3279.263	-10.724    -0.33%
TSX	12220.20	-109.31
		-0.89%

International Markets

Market  Index	Close	Change
NIKKEI	13884.13	-41.95
		-0.30%
HANG  SENG	22547.71	+146.47
		+0.65%
SENSEX	19286.72	-120.13
		-0.62%
FTSE 100	6426.42	-16.17
		-0.25%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.705	1.742
CND.   30 Year Bond	2.375	2.404
U.S.   10 Year Bond	1.6633	1.7046
U.S.   30 Year Bond	2.8611	2.9022

Currencies

BOC Close	Today	Previous
Canadian $	0.98280	0.98029
US   $	1.01750	1.02011
Euro Rate  1 Euro=		Inverse
Canadian   $	1.32585	0.75423
US  $	1.30305	0.76743

Commodities

Gold	Close	Previous
London Gold   Fix	1462.09	1464.75
Oil	Close	Previous
WTI Crude Future	93.00	93.29
BRENT	103.05	103.30

Market Commentary:

Canada

By Eric Lam

April 26 (Bloomberg) — Canadian stocks fell for the first time in seven days, paring a weekly gain, after data showed the U.S. economy grew at a slower pace than forecast.

TransCanada Corp. dropped 1.3 percent after the pipeline builder said delays in getting a U.S. presidential permit for the Keystone XL oil conduit will push back its start until the second half of 2015. Suncor Energy Inc., Canada’s largest energy producer, lost 1.1 percent as crude retreated for the first time in seven days.

The Standard & Poor’s/TSX Composite Index fell 109.31 points, or 0.9 percent, to 12,220.20 at 4 p.m. in Toronto. The benchmark equity gauge gained 1.3 percent this week, trimming its loss for the year to 1.7 percent.

“The U.S. numbers are definitely weaker than expected,” Andrew Pyle, a fund manager with ScotiaMcLeod Inc., said on the phone from Peterborough, Ontario. He manages C$210 million ($206 million). “That number has had an impact on oil. It was not a disastrous number, but when people are looking for a 3 percent handle on GDP, 2.5 percent takes some of the wind out of oil.”

U.S. gross domestic product rose at a 2.5 percent annual rate, lower than forecast, after a 0.4 percent fourth-quarter advance, Commerce Department figures showed today in Washington.

The median estimate of 86 economists surveyed by Bloomberg called for a 3 percent gain. Consumer spending, the biggest part of the economy, climbed by the most since the fourth quarter of 2010.

Raw-materials and energy stocks contributed most to losses in the S&P/TSX as eight of 10 industries retreated. Trading volume was 13 percent lower than the 30-day average at this time of the day.

TransCanada, Canada’s second-largest pipeline company, decreased 1.3 percent to C$49.14. The company said its $5.3 billion cost estimate for the Keystone project will increase depending on the timeline of the permit.

TransCanada has spent $1.8 billion on the project as of the end of last month, which was originally targeted for a startup in late 2014 or early 2015.

The Calgary-based company also reported first-quarter earnings of 52 Canadian cents a share, short of the average estimate of 54 cents according to a Bloomberg survey of 13 analysts.

Suncor lost 1.1 percent to C$29.28 and Canadian Natural Resources Ltd. dropped 2.1 percent to C$29.58. Crude for June delivery declined 0.7 percent to settle at $93 a barrel in New York to trim the biggest weekly advance since June. Prices rose 5.7 percent this week.

Lundin Mining Corp. dropped 5.8 percent to C$3.93 and First Quantum Minerals Ltd. fell 7.4 percent to C$16.67 as copper fell for the first time in three days. Stockpiles of the metal are expanding ahead of a holiday that will close markets in China, the world’s biggest consumer.

Royal Bank of Canada, the nation’s largest lender, lost 0.8 percent to C$60.02 and Toronto-Dominion Bank decreased 0.3 percent to C$81.10 as financial stocks fell for the first time in four days.

Gabriel Resources Ltd. surged 29 percent to C$1.72, the biggest gain since October 2008. Mediafax, a Romanian media company, said the government plans to create a company called Minvest Rosia Montana to take over the 19.3 percent stake held by the state in Gabriel’s mine project, according to an unpublished official document.

Gabriel’s Rosia Montana project has reported resources of 17.1 million ounces of gold and 81.1 million ounces of silver, according to the company’s website.

US

By Lu Wang

April 26 (Bloomberg) — U.S. stocks rose for the week, with the Standard & Poor’s 500 Index rebounding from the biggest drop since November, as companies beat earnings estimates amid speculation central bank stimulus will continue.

The S&P 500 fell on the final day as data showed the U.S. economy grew less than forecast in the first quarter. United Parcel Service Inc. and Boeing Co. climbed more than 3.2 percent for the week after posting results. Apple Inc. rose 6.8 percent after boosting its dividend and share-buyback plan. DuPont Co. and Halliburton Co. jumped at least 7.5 percent, driving commodity shares to the biggest gain among 10 S&P 500 groups.

The S&P 500 rose 1.7 percent to 1,582.24 over the five days, after tumbling 2.1 percent in the previous week. The Dow Jones Industrial Average increased 165.04 points, or 1.1 percent, to 14,712.55. The S&P 500 is up 0.8 percent in April, poised for a sixth straight monthly gain, the longest stretch since September 2009.

“We see a big pivot in markets to go from safe to cyclical,” John Augustine, who helps manage $27 billion as chief market strategist at Cincinnati-based Fifth Third Bancorp, said by phone. “Earnings were OK. Now market attention is focusing on stimulus, which they believe is coming in Europe.”

Global stocks rallied during the week as speculation mounted that the European Central Bank will cut rates when it meets on May 2. U.S. gross domestic product rose at a 2.5 percent rate in the first quarter, below economists’ estimates for a 3 percent gain. The economy’s inability to sustain faster growth means Federal Reserve policy makers will probably affirm a pledge to keep buying bonds after their May 1 meeting.

Other economic reports in the week showed demand for durable goods slumped by the most in seven months while applications for unemployment benefits fell to a six-week low.

The bull market in U.S. equities has entered its fifth year as the S&P 500 surged 134 percent from a 12-year low in 2009, driven by better-than-estimated corporate earnings and three rounds of monetary stimulus from the Fed.

Analysts are turning more bullish on corporate earnings.

Profit at S&P 500 companies gained 1.1 percent in the first three months of the year, according to analysts’ projections compiled by Bloomberg. That compares with a week earlier projection for a decline of 1.1 percent.

Of the 270 companies in the benchmark index that have reported so far in this earnings season, 74 percent have exceeded analysts’ predictions on profits while 54 percent trailed on sales, data compiled by Bloomberg show.

“It’s the trend we’ve seen for a while, which is, companies seem to beat on earnings, but struggle on the top line,” Rob Edel, chief investment officer with Nicola Wealth Management, in a phone interview from Vancouver. His firm manages about C$2 billion ($1.97 billion). “It’s a question of how much it is cost-saving driven versus real growth.”

The markets experienced two disruptions in separate incidents during the week. The S&P 500 erased almost all of a 1 percent rally on April 23 following a post on an Associated Press Twitter account that said there were explosions at the White House. Stocks recovered as the AP said it had been hacked and there were no explosions.

A software malfunction shut the Chicago Board Options Exchange for three-and-a-half hours on April 25, preventing traders from trading on options based on the S&P 500 and the so- called VIX gauge of equity volatility.

The Chicago Board Options Exchange Volatility Index dropped 9.1 percent to 13.61 for the week. The gauge has lost 24 percent for the year.

Companies whose earnings are most tied to economic swings led gains for the week. Commodity, technology and financial companies rose the most among 10 S&P 500 groups, rallying at least 2.6 percent. The S&P GSCI gauge of 24 commodities jumped 2.4 percent as gold rallied the most in 15 months and crude capped its biggest increase since June.

The Dow Jones Transportation Average climbed 1.4 percent.

UPS advanced 3.3 percent to $85.71. First-quarter earnings beat estimates as the world’s largest package-delivery company carried more purchases to online shoppers.

Boeing jumped 5.6 percent to $92.85, the highest level in more than five years. The company increased deliveries for 777- and 737-model jets, making up for the halt in buyers picking up Dreamliners while that plane was grounded and helping quarterly profit exceed forecasts.

Apple rallied 6.8 percent, the most since November, to $417.21. The company, which this year ceded the title of the world’s largest company by market value to Exxon Mobil Corp., said it will return an additional $55 billion in cash to shareholders to compensate for a stock that’s been hammered by signs of slowing growth.

The iPhone maker reported its first profit drop in a decade and forecast sales this quarter that may miss analysts’ projections.

DuPont advanced 7.5 percent to $52.90. The largest U.S. chemical company by market value posted first-quarter earnings that exceeded analysts’ estimates as profit from crop seeds and pesticides hit a record and pigment demand began to recover.

Cost reductions helped quarterly results at Halliburton and Cliffs Natural Resources Inc. Halliburton, the world’s largest provider of hydraulic-fracturing services, rose 9 percent to $40.57. Cliffs Natural, the largest U.S. iron-ore producer, gained 14 percent to $20.17.

An index of homebuilders jumped 14 percent. The Commerce Department reported April 23 that sales of new U.S. homes advanced in March as near record-low mortgage rates helped the industry complete the strongest quarter since 2008.

Profits at D.R. Horton Inc. and PulteGroup Inc. surged amid the accelerating housing recovery. D.R. Horton, the largest U.S. homebuilder by volume, rallied 21 percent to $26.66. PulteGroup, the biggest by revenue, climbed 19 percent to $21.35.

Netflix Inc. soared 32 percent, the most in the S&P 500, to $215.55. The online video service signed up more than 2 million new U.S. customers and 1 million internationally in the first quarter, defying skepticism about its growth prospects.

Microsoft Corp., the world’s largest software maker, jumped 6.8 percent to $31.79 after activist investor ValueAct Holdings LP amassed about a $1.9 billion stake.

Procter & Gamble Co. declined 5.3 percent to $77.10 for the biggest retreat since 2009. The maker of Gillette razors and Tide detergent projected fiscal fourth-quarter earnings that trailed analysts’ estimates because of currency fluctuations and marketing costs.

AT&T Inc. slipped 3.2 percent to $37.04. The largest U.S. phone company reported lower first-quarter revenue than analysts forecast, dragged down by sluggish landline sales and competition with Verizon Wireless.

Edwards Lifesciences Corp. fell the most in the S&P 500, plunging 23 percent to $64.17. The biggest maker of aortic heart valves implanted with a catheter cut its 2013 forecast on slower-than-anticipated sales.

Have a wonderful weekend everyone.

 

Be magnificent!

 

One drop of the sea cannot claim to come from one river, and another drop of the sea from another river;

the sea is a single consistent whole.  In the same way all beings are one; there is no being

that does not come from the soul, and is not part of the soul.

Chandogya Upanishad

As ever,

 

Carolann

 

Never apologize for showing feeling.  When you

do so, you apologize for the truth.

-Bejamin Disraeli, 1804-1881

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 picked up a copy of the May edition of Food & Wine at the grocery store check out.  What caught my eye was a heading on the cover “100 restaurants worth a pilgrimage.”

I’ve only glanced through it, but it makes recommendations in North America, Europe, Asia etc.  So, if you’ve made your summer vacation plans already, you may want to pick up a copy and make some reservations.  There are only three in Canada, two in Montreal and one in Toronto.  But lots of recommendations for  the US.

On this  day in 1915, the Battle of Gallipoli took place, and…

April 25^th, 1917, Ella Fitzgerald was born.

294 years ago, on April 25^th, 1719, English merchant turned author, Daniel Defoe published his castaway tale Robinson Crusoe.

127 years ago, on April 25^th, 1886, Sigmund Freud opened his psychiatric practice in Vienna, focusing on the talking cure for patients.

75 years ago, on April 25^th, 1938, Joe DiMaggio agreed to a one year contract with the Yankees for $25,000 – an impressive amount at the time.

23 years ago, on April 25^th, 1990, Jimi Hendrix’s 1968 Fender Stratocaster, which he played at Woodstock, was sold for $334,620 at auction, the most expensive guitar sold.

15 years ago, Whitewater prosecutors questioned US First Lady Hillary Clinton about her involvement in the failed Savings & Loan at the center of the investigation.

Failure is the condiment that gives success its flavor. –Truman Capote.

Have a wonderful day!

Photos of the day – April  25th, 2013

Meg Zimbeck, US Cooking journalist, sniffs a baguette, French bread, in competition for the ‘Grand Prix de la Baguette de la Ville de Paris’ (Best Baguette of Paris 2013) annual prize at the Chambre Professionnelle des Artisans Boulangers Patissiers in Paris. The baguette is a French cultural symbol par excellence and the competition saw 203 Parisian bakers who compete for recognition as finest purveyor of one of France’s most iconic staples. Charles Platiau/Reuters

A man plays the bagpipes in a cemetery during the dawn service to mark the 98th ANZAC (Australian and New Zealand Army Corps) commemoration ceremony at the Australian National Memorial in Villers-Bretonneux, northern France. Benoit Tessier/Reuters

Market Closes for April 25th, 2013

Market  Index	Close	Change
Dow  Jones	14700.80	+24.50    +0.17%
S&P 500	1585.16	+6.37    +0.40%
NASDAQ	3289.986	+20.334    +0.62%
TSX	12329.51	+59.08
		+0.48%

International Markets

Market  Index	Close	Change
NIKKEI	13926.08	+82.62
		+0.60%
HANG  SENG	22401.24	+218.19
		+0.98%
SENSEX	19406.85	+227.49
		+1.19%
FTSE 100	6442.59	+10.83
		+0.17%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.742	1.723
CND.   30 Year Bond	2.404	2.379
U.S.   10 Year Bond	1.7046	1.7047
U.S.   30 Year Bond	2.9022	2.8953

Currencies

BOC Close	Today	Previous
Canadian $	0.98029	0.97527
US   $	1.02011	1.02535
Euro Rate  1 Euro=		Inverse
Canadian   $	1.32693	0.75362
US  $	1.30078	0.76877

Commodities

Gold	Close	Previous
London Gold   Fix	1464.75	1430.63
Oil	Close	Previous
WTI Crude Future	93.29	91.06
BRENT	103.30	101.85

Market Commentary:

Canada

By Eric Lam

April 25 (Bloomberg) — Canadian stocks rose for a sixth day, the longest streak since January, as a rally in metals prices boosted raw-materials producers and Potash Corp. of Saskatchewan Inc. reported better-than-forecast earnings.

Kirkland Lake Gold Inc. and Rubicon Minerals Corp. added at least 8.6 percent as gold prices jumped. Potash, the world’s largest fertilizer producer, gained 2.7 percent after first- quarter earnings topped analyst estimates and the company scrapped a proposed takeover bid for Israel Chemicals Ltd.

Methanex Corp. surged to a record after Argentina resumed natural gas exports to the company’s plants in Chile.

The Standard & Poor’s/TSX Composite Index rose 59.08 points, or 0.5 percent, to 12,329.51 at 4 p.m. in Toronto. The gauge has gained 2.2 percent this week, paring its loss for the year to 0.8 percent. Trading volume was 13 percent higher than the 30-day average.

“Today and yesterday we’ve had a bounce-back in the commodity space, whether it’s base metals, gold or energy,” said Anil Tahiliani, a fund manager with McLean & Partners Wealth Management Ltd. in Calgary. He helps manage C$1 billion ($980 million). “The tone has changed today because it wasn’t just a one-day wonder. We’re getting follow-through today.”

Gold jumped the most since June on signs of more investor demand following last week’s biggest drop in 30 years. Copper rose for a second day in New York and silver rallied after slumping almost 11 percent last week. Oil advanced for a sixth day, the longest winning streak in nine months, after U.S. jobless claims fell more than expected, boosting investor confidence in the world’s largest economy.

Commodities stocks contributed most to gains in the benchmark Canadian equity index. The S&P/TSX Materials Index jumped 1.8 percent.

Potash Corp. rose 2.7 percent to C$41.72, the biggest gain since January, after reporting first-quarter adjusted earnings of 63 cents a share, compared with an average estimate of 60 cents according to a Bloomberg survey of 27 analysts.

The Saskatoon, Saskatchewan-based company also announced it would not pursue an offer for Israel Chemicals, the country’s second-largest publicly traded company. Israeli workers and politicians opposed the deal. The scuttled bid may clear the way for a dividend increase and share buybacks, Stifel Nicolaus & Co. analyst Paul Massoud wrote in a note.

Kirkland Lake Gold jumped 8.6 percent to C$3.52 and Rubicon Minerals gained 18 percent to C$1.93 as gold for June delivery advanced 2.7 percent to settle at $1,462 an ounce in New York.

Gold futures have rebounded 11 percent since touching a two-year low of $1,321.50 on April 16. Silvercorp Metals Inc. rallied 6.9 percent to C$3.09 as silver for July delivery soared 5.7 percent to $24.182 an ounce.

First Quantum Minerals Ltd. rose 3.8 percent to C$18 and Lundin Mining Corp. added 5.3 percent to C$4.17 as copper increased 2.4 percent to settle at $3.2425 a pound in New York.

Methanex gained 10 percent to a record C$44.09. The company’s Chile-based plants received gas from Argentina in March, the first deliveries since 2007. Natural gas is used to make methanol, a substance used in the manufacture of everything from windshield-wiper fluid to paint and transportation fuel.

The Vancouver-based company also reported adjusted earnings that topped analyst estimates and raised its quarterly dividend 8 percent to 20 cents a share.

Open Text Corp. jumped 12 percent to C$64.91, its highest close since July 2011. Canada’s second-largest software services company by market value said it will pay a dividend for the first time.

Domtar Corp. plunged 8.7 percent to C$69.61 for the biggest loss September 2009. The Montreal-based pulp and paper maker reported preliminary first-quarter adjusted earnings that fell short of analysts’ estimates. The company blamed “disappointing” results in its paper business on high costs caused by low productivity.

US

By Inyoung Hwang and Lu Wang

April 25 (Bloomberg) — U.S. stocks rose, extending a rally in the Standard & Poor’s 500 Index to a fifth day, as earnings from United Parcel Services Inc. to Cliffs Natural Resources Inc. topped estimates and jobless claims fell.

Cliffs Natural soared 15 percent and UPS climbed 2.3 percent. Akamai Technologies Inc. rose 18 percent as revenue and profit beat estimates. 3M Co. slid 2.8 percent as profit trailed forecasts and the company cut its full-year outlook amid a slowing global economy. Qualcomm Inc. lost 5.4 percent after forecasting profit that may miss some analysts’ projections.

The S&P 500 advanced 0.4 percent to 1,585.16 in New York.

The gauge has risen 2.8 percent since April 18. The Dow Jones Industrial Average climbed 24.50 points, or 0.2 percent, to 14,700.80 today. Almost 6.8 billion shares traded hands today, or 6 percent more than the three-month average.

“The majority of companies are continuing to beat expectations, so that’s a good sign,” Peter Jankovskis, who helps oversee $3 billion as co-chief investment officer of Lisle, Illinois-based Oakbrook Investments LLC, said by telephone. “The jobless claims were better-than-expected, so that’s providing some support.”

Some 59 S&P 500 companies post earnings today. Of the 237 index members that have published results so far in this reporting season, 73 percent have exceeded analysts’ earnings estimates while 56 percent missed on revenue, data compiled by Bloomberg show.

Profit at S&P 500 companies dropped 1.1 percent in the first three months of the year, according to analyst forecasts compiled by Bloomberg. That would mark the first year-over-year decrease since 2009.

Applications for jobless benefits fell by 16,000 to 339,000 in the week ended April 20, according to Labor Department data released today in Washington. Economists in a Bloomberg survey had a median estimate of 350,000 claims.

In the U.K., the economy grew 0.3 percent in the first quarter, more than economists forecast, avoiding a triple-dip recession. Twenty-four of 40 economists surveyed by Bloomberg expect the European Central Bank to cut its benchmark interest rate by a quarter percentage point to 0.5 percent next week.

The S&P 500 has surged 134 percent from a 12-year low in 2009 as corporate earnings beat analyst estimates and the Federal Reserve embarked on three rounds of bond purchases to spur economic growth. The benchmark gauge is within eight points of an all-time high of 1,593.37 reached on April 11.

Central bank policy makers have been voicing support for extending record stimulus as inflation cools and 11.7 million Americans remain jobless. That marks a shift from last month’s meeting, when the bankers debated the timing of a possible reduction in bond buying. The Federal Open Market Committee will meet April 30-May 1.

“The market is really looking at continued easing by the Fed,” Greg Woodard, a portfolio strategist at Manning & Napier in Fairport, New York, said by phone. His firm had $45.2 billion under management at the end of 2012. “They’re looking for signals of when the Fed is going to start to reverse that. Our view is that probably it’s going to be some time away.”

The Chicago Board Options Exchange Volatility Index, or VIX, increased 0.1 percent to 13.62. The CBOE opened for trading three-and-a-half hours late today after a problem with its computer systems shut the derivatives market.

Nine out of 10 industries in the S&P 500 advanced as phone and raw-materials companies climbed the most, rising at least 1 percent. Energy companies slumped 0.2 percent as a group.

Cliffs Natural jumped the most in four years, adding 15 percent to $20.95. The largest U.S. iron-ore producer idled some mines to reduce operating costs in the first quarter and adjusted earnings beat analysts’ forecasts.

UPS climbed 2.3 percent to $85.42. The world’s largest package-delivery company posted higher first-quarter earnings than analysts estimated as deliveries of online purchases increased. The company handles more than 16 million packages and envelopes a day worldwide, making it a bellwether for the economy.

Akamai, which helps customers deliver online content faster, had the biggest gain in the S&P 500. The stock surged 18 percent to $42.48 after the company reported first-quarter revenue and profit that topped estimates as Internet traffic increased more than expected.

An index of homebuilders climbed 2.5 percent as all of its 11 members gained. PulteGroup Inc. jumped 5.6 percent to $20.79.

The largest U.S. homebuilder by revenue reported earnings that beat analyst estimates as an accelerating housing recovery fueled sales and led to higher prices.

Dow Chemical Co. advanced 5.6 percent to $33.97. The largest U.S. chemical maker by sales posted first-quarter profit that beat analysts’ estimates as lower prices for natural gas increased earnings from plastics.

Biogen Idec Inc. added 4.8 percent to $216. The fourth- largest U.S. biotechnology company by market value raised its full-year forecast as first-quarter net income increased on a tax benefit.

Regeneron Pharmaceuticals Inc. advanced 2.9 percent to $216.75. The maker of the eye medicine Eylea will replace MetroPCS Communications Inc. in the S&P 500 after the close of trading on April 30, S&P said.

3M fell 2.8 percent, the steepest decline since October, to $104.88. The maker of products ranging from Scotch tape to dental braces reduced its annual earnings forecast after quarterly profit trailed estimates for the first time in 1 1/2 years amid a slowing global economy. The company, which made 65 percent of 2012 revenue outside the U.S., gets fewer dollars when converting sales from countries with weaker currencies into its results.

Qualcomm lost 5.4 percent to $62.44. The biggest seller of semiconductors for mobile phones forecast fiscal third-quarter net income of 80 cents to 88 cents a share as average phone prices come under pressure. Analysts on average had projected earnings of 87 cents, according to data compiled by Bloomberg.

Exxon Mobil Corp. slipped 1.5 percent to $88.07, halting a five-day gain of 3.9 percent. The world’s largest company by market value said sales fell 12 percent to $108.8 billion in the first quarter. Widening chemical margins made up for lower crude production and prices, helping Exxon post an unexpected profit increase.

Intuit Inc. slid 11 percent to $57.09. The maker of tax and financial-planning software cut its full-year earnings forecast.

JPMorgan Chase & Co. downgraded the shares to neutral from overweight, the equivalent of a buy rating.

Safeway Inc. tumbled 14 percent, the most since 2003, to $24.32 after the grocer reported first-quarter same-store sales that were lower than it previously estimated.

Zynga Inc. sank 6.5 percent to $3.13. The biggest maker of online social games forecast second-quarter sales that may fall short of some analysts’ estimates as revenue from mobile titles fails to make up for a drop in users playing its games on Facebook Inc.’s website.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

In music, I am the melody.

The Bhagavad Gita

As ever,

 

Carolann

 

Even cowards can endure hardship; only the brave

can endure suspense.

-Mignon McLaughlin, 1913-1983

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

 

Dear Friends,

Tangents:

Birthdays:

1934 – Shirley MacLaine

1942 – Barbra Streisand

Last weekend, The Wall Street Journal cited the study from the University of British Columbia showing that acetaminophen eases not just physical pain, but relieves “existential anxieties” as well.  Participants wrote about their own deaths and watched clips from a David Lynch movie.  Acetaminophen appeared to ease feelings of dread.  Quite amazing.

Tyranny is always better organized than freedom. –Charles Péguy

Photos of the day – April  24th, 2013

Tulips are seen on Capitol Hill in Washington. Carolyn Kaster/AP

A worker is seen through an art piece ‘Poetic Cosmos of the Breath’ by Argentina-born artist Tomas Saraceno as part of an exhibition ‘Inflation!’ at the site of an upcoming park in the West Kowloon cultural district in Hong Kong. Bobby Yip/Reuters

Market Closes for April 24th, 2013

Market  Index	Close	Change
Dow  Jones	14676.30	-43.16    -0.29%
S&P 500	1578.79	+0.01  —
NASDAQ	3269.652	+0.319    +0.01%
TSX	12270.43	+179.49
		+1.48%

International Markets

Market  Index	Close	Change
NIKKEI	13843.46	+313.81
		+2.32%
HANG  SENG	22183.05	+376.44
		+1.73%
SENSEX	19179.36	+9.53
		+0.05%
FTSE 100	6431.76	+25.64
		+0.40%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.723	1.723
CND.   30 Year Bond	2.379	2.376
U.S.   10 Year Bond	1.7047	1.7030
U.S.   30 Year Bond	2.8953	2.8984

Currencies

BOC Close	Today	Previous
Canadian $	0.97527	0.97419
US   $	1.02535	1.02649
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33485	0.74915
US  $	1.30184	0.76814

Commodities

Gold	Close	Previous
London Gold   Fix	1430.63	1414.50
Oil	Close	Previous
WTI Crude Future	91.06	88.83
BRENT	101.85	100.54

Market Commentary:

Canada

By Eric Lam

April 24 (Bloomberg) — Canadian stocks rose, giving the benchmark index its largest gain since August, as commodities rallied and Barrick Gold Corp.’s results surpassed estimates.

Barrick, the world’s largest gold producer by sales, jumped the most since 2009 as better-than-estimated mining costs and gold output boosted first-quarter earnings. Alacer Gold Corp. and New Gold Inc. surged at least 9.8 percent as the price of the metal rallied. Teck Resources Ltd. added 4.7 percent after copper rebounded from a bear market. Suncor Energy Inc., Canada’s largest oil producer, gained 2.6 percent as crude increased.

The Standard & Poor’s/TSX Composite Index rose 179.49 points, or 1.5 percent, to 12,270.43 at 4 p.m. in Toronto. The benchmark equity gauge has increased 2.7 percent in the past five sessions, the longest streak of gains since January.

Trading volume was in line with the 30-day average.

“It’s very heavily weighted towards the commodity space today, they’re all bouncing back,” Michael O’Brien, a fund manager with TD Asset Management, said on the phone from Toronto. He manages about C$3 billion ($3 billion). “The entire commodity complex has been sold down so viciously over the past couple weeks that people had to stop and pause for breath.”

Commodity stocks contributed most to gains in the benchmark index, as raw-material producers rose 5 percent for the biggest advance since November 2011. The S&P/TSX Materials Index has fallen 24 percent this year.

Gold advanced 1.1 percent to settle at $1,423.70 an ounce in New York, the fourth increase in five sessions, as signs of more physical purchases tempered shrinking assets in exchange- traded products. The metal has rallied 7.7 percent since touching a low of $1,321.50 on April 16.

Alacer Gold jumped 17 percent to C$2.95 and New Gold soared 9.8 percent to C$7.88. The S&P/TSX Gold Index added 6.6 percent, the most since June, as 29 of 30 members advanced.

Barrick rallied 7.6 percent to C$19.38, the biggest gain since September 2009. The miner posted adjusted first-quarter earnings of 92 cents a share, compared with the 86-cent average of 21 estimates compiled by Bloomberg.

The company’s total cash cost to produce an ounce of gold was $561, compared with $540 a year earlier and the $654 average of six estimates. The Toronto-based company is also considering suspending the $8.5 billion Pascua-Lama project on the border of Chile and Argentina.

Jamie Sokalsky, chief executive officer, said at a shareholder meeting in Toronto today Barrick is still looking for more ways to cut costs and will need to manage without the promise of higher gold prices. Barrick has plunged 44 percent this year.

Turquoise Hill Resources Ltd., which is developing the $6.6 billion Oyu Tolgoi gold project in Mongolia with parent Rio Tinto Group, soared 16 percent to C$7.

Nick Cousyn, chief operating officer with BDSec, a brokerage in Mongolia, said the Mongolian government, which has been locked in negotiations with the company over costs and environmental concerns, is now looking to do “everything possible” to ensure production starts in June.

“This is a significant about-face,” Cousyn said in a note yesterday, advising investors to “move up their time frames and buy now.”

Teck Resources, Canada’s largest diversified miner, gained 4.7 percent to C$26.80 as copper for July delivery rose 2 percent to settle at $3.165 a pound in New York. The metal fell into a bear market last week on concern slowing economies in the U.S. and China would reduce demand. Copper prices have dropped 12 percent this year.

Suncor climbed 2.6 percent to C$29.60 and Canadian Natural Resources Ltd. rallied 2.3 percent to C$29.45. Crude for June delivery jumped the most this year, adding 2.5 percent to settle at $91.43.

US

By Lu Wang and Whitney Kisling

April 24 (Bloomberg) — Most U.S. stocks advanced, extending gains in the Standard & Poor’s 500 Index to a fourth day, as investors weighed quarterly earnings at companies from Boeing Co. to Apple Inc.

Boeing and Yum! Brands Inc. advanced at least 3 percent after reporting first-quarter earnings that topped estimates.

Apple fell 0.2 percent after planning to return an additional $55 billion in cash to shareholders amid its first profit decline in a decade. Procter & Gamble Co. dropped 5.9 percent as its earnings forecast missed analyst projections. AT&T Inc. fell 5 percent after sales trailed estimates.

The S&P 500 added less than 0.1 percent to 1,578.79 at 4 p.m. in New York. The index has rallied 2.4 percent over four days. The Dow Jones Industrial Average dropped 43.16 points, or 0.3 percent, to 14,676.30 today. More than three stocks rose for every two that fell on U.S. exchanges as 6.3 billion shares traded hands, in line with the three-month average.

“First-quarter earnings have generally exceeded expectations and looked good, but second-quarter guidance seems to be ratcheting lower,” Eric Teal, chief investment officer at First Citizens BancShares Inc., which manages $4.5 billion in Raleigh, North Carolina, said in a phone interview. “So it’s a bit of a mixed bag and the market has been volatile.”

Forty-seven S&P 500 companies post earnings today. Of the 180 companies that have published results so far in this reporting season, 73 percent have exceeded analysts’ predictions for earnings, data compiled by Bloomberg show. Profit at S&P 500 companies dropped 1.1 percent in the first three months of the year, according to forecasts compiled by Bloomberg. That would mark the first year-over-year decrease since 2009.

Analysts have trimmed their projections for the second quarter, forecasting earnings to expand 5.5 percent, data compiled by Bloomberg show. They had expected an increase of 6.2 percent at the beginning of April.

The S&P 500 has surged 133 percent from a 12-year low in 2009 as corporate earnings beat estimates and the Federal Reserve embarked on three rounds of bond purchases to stimulate the economy. Benchmark indexes reached record highs on April 11.

U.S. stocks suffered declines during the second quarter in each of the past three years, with losses in the S&P 500 averaging 5.2 percent, data compiled by Bloomberg show.

“The earnings season has been enough to hold stocks where they are in light of some less-than-hoped-for macro data,” Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which oversees about $380 billion, said by phone. “Time will tell if it will remain enough as we move through what’s a seasonally more difficult time.”

Data today showed orders for U.S. durable goods fell in March by the most in seven months as demand slumped for commercial aircraft and business investment cooled.

The Chicago Board Options Exchange Volatility Index, or VIX, rose 1 percent to 13.61. The gauge, which moves in the opposite direction to the S&P 500 about 80 percent of the time, is down 24 percent for the year.

Seven out of the 10 S&P 500 industries gained as commodity and energy companies advanced the most, rising at least 1.2 percent. Phone stocks had the biggest loss, down 2.9 percent as a group.

Boeing gained 3 percent to $90.83. The aircraft maker said earnings were $1.73 a share in the first quarter, topping the average analyst estimate of $1.49 per share, as increased deliveries for 777- and 737-model jets made up for the halt in buyers picking up Dreamliners while that plane was grounded.

Yum Brands increased 7 percent to $68.65. The owner of the KFC and Pizza Hut dining chains said profit excluding certain items was 70 cents a share as new menu items helped Taco Bell’s domestic sales. Analysts estimated 60 cents, the average of 25 projections compiled by Bloomberg.

Newfield Exploration Co. climbed 7.4 percent to $21.31, leading energy stocks to a 1.2 percent gain. The oil producer reported quarterly profit that beat analysts’ estimates by the most in a year, data compiled by Bloomberg show. Newfield said it expects to meet a 2013 output target.

WellPoint Inc. gained 5.8 percent to $73.33. The second- biggest U.S. health insurer reported profit that outpaced analysts’ estimates and raised its forecast, fueled by the acquisition of Amerigroup Corp. and lower-than-anticipated medical costs.

General Dynamics Corp. advanced 6.9 percent to $71.73. The maker of Abrams tanks and Gulfstream business jets beat analysts’ estimates for first-quarter profit as the company is focusing on cost-cutting and increasing margins.

Buckeye Technologies Inc. surged 27 percent to a record $37.86. The manufacturer of specialty-cellulose products agreed to be bought by Georgia-Pacific LLC for $37.50 a share in cash.

The transaction is valued at about $1.5 billion, including debt.

Apple slipped 0.2 percent to $405.46. The maker of iPhones forecast sales that missed analysts’ predictions and reported an 18 percent decline in earnings, its first profit drop since 2003. Apple also said it will return an additional $55 billion in cash to shareholders to compensate for a stock that’s been hammered by signs of slowing growth. Apple shares have slumped 24 percent this year amid signs of slowing growth.

The company boosted its quarterly dividend and allotted more cash to buybacks, announcing plans to borrow funds for what it called the largest share-repurchase program in history.

P&G slipped 5.9 percent, the most in about four years, to $77.12 after predicting full-year core earnings will be in the range of $3.96 to $4.04 a share. Analysts surveyed by Bloomberg had estimated earnings at $4.06 per share for 2013.

Results in the current quarter will be affected by increased marketing expenses for new product introductions, Chief Financial Officer Jon Moeller said. Foreign currency exchange is also expected to reduce net sales by 2 percent in the period, P&G said.

Amgen Inc. declined 6.9 percent, the most in four years, to $104.93. Revenue increased 5 percent to $4.24 billion, less than the $4.37 billion estimated by analysts. This is the first time in 11 quarters that the company has missed expectations, according to Bloomberg Industries.

AT&T lost 5 percent to $37.04 for the biggest retreat since February 2009. The largest U.S. phone company said sales dropped 1.5 percent to $31.4 billion in the first quarter, dragged down by a sluggish landline business and competition with Verizon Wireless. Analysts on average had forecast $31.7 billion.

Edwards Lifesciences Corp. tumbled 22 percent, the largest drop since 2000, to $64.60. The biggest maker of aortic heart valves implanted with a catheter cut its 2013 forecast as first- quarter sales were slower than anticipated.

Motorola Solutions Inc. declined 9.3 percent to $56.02. The maker of industrial gear such as two-way radios and bar-code scanners reported quarterly profit and sales that trailed analysts’ estimates. Corporate customers are still working to rebound from the economic slump, causing them to put off orders, Chief Executive Officer Greg Brown said.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

The soul is the home of all living beings;

and from the soul all living beings derive their strength.

There is nothing in the universe that does not come from the soul.

The soul dwells within all that exists;

it is the truth of all that exists;

You, my son, are the soul.

Chandogya Upanishad

As ever,

 

Carolann

 

Art is the only way to run away without leaving home.

-Twyla Tharp, 1941-

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 April 23^rd, 1597, 416 years ago today, William Shakespeare’s The Merry Wives of Windsor was first performed, with Queen Elizabeth I in attendance.

So many word treasures to be found, including,

Why, then the world’s mine oyster,

Which I with sword will open.  –Act II, Sc. ii.

There is divinity in odd numbers, either in nativity, chance or death. –Act V, Sc. I.

O, what a  world of vile ill-favoured faults

Looks handsome in three hundred pounds a year!  -Act  III, Sc. IV

Photos of the day – April  23rd, 2013

A worker makes his way through a function room decorated with colored bulbs in Singapore. Wong Maye-E/AP

A robot stands in front of the Houses of Parliament and Westminster Abbey as part of the Campaign to Stop Killer Robots in London. Luke MacGregor/Reuters

Market Closes for April 23rd, 2013

Market  Index	Close	Change
Dow  Jones	14719.46	+152.29    +1.05%
S&P 500	1578.78	+16.28    +1.04%
NASDAQ	3269.333	+35.780    +1.11%
TSX	12093.61	+2.93
		+0.02%

International Markets

Market  Index	Close	Change
NIKKEI	13529.65	-38.72
		-0.29%
HANG  SENG	21806.61	-237.76
		-1.08%
SENSEX	19179.36	+9.53
		+0.05%
FTSE 100	6406.12	+125.50
		+2.00%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.723	1.705
CND.   30 Year Bond	2.376	2.366
U.S.   10 Year Bond	1.7030	1.6937
U.S.   30 Year Bond	2.8984	2.8756

Currencies

BOC Close	Today	Previous
Canadian $	0.97419	0.97491
US   $	1.02649	1.02574
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33448	0.74936
US  $	1.30004	0.76921

Commodities

Gold	Close	Previous
London Gold   Fix	1414.50	1425.88
Oil	Close	Previous
WTI Crude Future	88.83	88.76
BRENT	100.54	100.99

Market Commentary:

Canada

By Eric Lam

April 23 (Bloomberg) — Canadian stocks were little changed, after fluctuating between gains and losses, as a rally in insurers offset a retreat in materials producers sparked by data showing slower growth in Chinese manufacturing.

Manulife Financial Corp. and Sun Life Financial Inc. jumped more than 2.9 percent to pace a rally in financial shares. Teck Resources Ltd. and Lundin Mining Corp. dropped at least 1.6 percent as copper slumped a third day. Goldcorp Inc. and Eldorado Gold Corp. slid more than 4.3 percent as the metal’s price declined. Rogers Communications Inc. fell 3.2 percent after reporting fewer new subscribers than estimated.

The Standard & Poor’s/TSX Composite Index rose less than 1 points to 12,090.94 at 4 p.m. in Toronto, erasing earlier losses of as much as 0.5 percent. Trading volume was 12 percent below the 30-day average.

The S&P/TSX briefly slumped as much as 0.3 percent by 1:10 p.m. after a posting on the Associated Press Twitter account said there had been explosions at the White House and President Barack Obama had been injured. The S&P 500 erased a 1 percentage point gain, wiping out $136 billion from the index. Markets recovered within 3 minutes after the news service said its Twitter account had been hacked.

“I looked at it and thought, ’What should I do, should I try and grab something?’ And a second later it was back to where it was,” said Barry Schwartz, fund manager with Baskin Financial Services Inc. in Toronto. He helps manage about C$500 million ($487 million). “Had this been true it would’ve dropped a lot more than 120 points, it would’ve dropped five or 10 percent.”

Energy and financial stocks contributed most to gains in the S&P/TSX as seven of 10 industries advanced. Manulife jumped 3.1 percent to C$14.47. Sun Life increased 2.9 percent to C$27.39. Toronto-Dominion Bank added 0.4 percent to C$80.88.

“The Canadian banks have been hit pretty hard here for just about a month now,” said Gareth Watson, vice president of investment management and research with Richardson GMP Ltd. in Toronto. His firm manages about C$16 billion. “Perhaps people are sniffing around and looking to pick them up.”

The S&P/TSX Financials Index has fallen as much as 2.5 percent this month, headed for the lowest monthly close since December 2012.

TransCanada Corp., which is trying to build the Keystone XL pipeline to deliver Alberta crude oil to the Gulf Coast, climbed 2.3 percent to C$49.71 after American Petroleum Institute President Jack Gerard said he believes Obama will approve the pipeline this year.

Stocks retreated earlier as data showed China’s manufacturing is expanding at a slower pace this month on weakness in global and domestic demand. The preliminary reading of 50.5 for a Purchasing Managers’ Index released by HSBC Holdings Plc and Markit Economics compared with a final 51.6 for March. A reading above 50 indicates expansion.

The S&P/TSX Materials Index has plunged 19 percent this month, on pace for the worst monthly drop since October 2008.

Goldcorp lost 3 percent to C$28.44 and Eldorado Gold Corp. declined 4.3 percent to C$7.29 as gold for June delivery slumped 0.9 percent to settle at $1,408.80 an ounce in New York. Gold mining companies sank 2.6 percent as 29 of 30 gold stocks declined.

Teck Resources decreased 1.6 percent to C$25.60 and Lundin lost 1.8 percent to C$3.84 as copper fell to an 18-month low, down 1.3 percent to $3.104 a pound in New York. Teck also reported adjusted first quarter earnings of 56 Canadian cents a share, ahead of the average estimate of 38 cents from 23 analysts surveyed by Bloomberg.

Rogers Communications Inc. declined 3.2 percent to C$50.40 as Canada’s largest wireless operator added fewer subscribers in the first quarter than analysts expected. Rogers signed 32,000 customers to contracts last quarter, compared with estimates for 42,000.

Colin Moore, analyst with Credit Suisse, and Robert Bek, analyst with CIBC World Markets, each lowered Rogers to the equivalent of a hold while maintaining price targets of C$52 and C$53, respectively.

US

By Nikolaj Gammeltoft

April 23 (Bloomberg) — U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for a third day, as earnings from Travelers Cos. to Netflix Inc. beat estimates and new-home sales rose in March.

Equities recovered after a false report of explosions at the White House briefly erased gains. Netflix jumped 24 percent for the biggest advance in the S&P 500. Travelers rose 2.1 percent as profit exceeded projections. Bank of America Corp. gained 3 percent after Morgan Stanley recommended investors buy the stock. Apple Inc. surged 5.2 percent after the market closed, as the company raised its dividend and increased its share buyback.

The S&P 500 rose 1 percent to 1,578.78 in New York. The Dow Jones Industrial Average added 152.29 points, or 1.1 percent, to 14,719.46. More than 6.4 billion shares traded hands on U.S. exchanges today, about 1.1 percent higher than the three-month average.

“So far so good on the earnings season, which has been fair, but we still need to see a lot of company reports,” Mark Kravietz, a Melville, New York-based partner and managing director at HighTower Advisors LLC, said in a phone interview.

He manages about $300 million. “We’re still in a bull market but in a pause to refresh after the first quarter rally.”

The benchmark equity gauge was up about 1 percent at about 1,578 at 1:07 p.m. New York time today when a posting on the Associated Press Twitter account said there had been explosions at the White House and President Barack Obama had been injured.

The S&P 500 erased almost the entire gain, falling as low as 1,563.03 by 1:10 p.m.

The index recovered from the plunge within three minutes as the news service said its Twitter account had been hacked and there were no explosions. Exxon Mobil Corp., Apple, Johnson & Johnson and Microsoft Corp. briefly lost about 1 percent in two minutes before rebounding.

“We saw a huge dip in the futures, immediately starting as headlines went out that the AP Twitter feed was reporting on the White House incident,” Dave Lutz, head of exchange-traded fund trading and strategy at Stifel Nicolaus & Co. in Baltimore, said by e-mail. “That spread quickly but we advised clients there was no confirmation from the White House or any of the other news outlets.”

The Chicago Board Options Exchange Volatility Index, or VIX, surged as high as 14.87 at 1:10 p.m. before erasing 8.5 percent to 13.61 within five minutes. The VIX, which moves in the opposite direction to the S&P 500 about 80 percent of the time, slumped 6.3 percent today to 13.48 and is down 25 percent for the year.

The equity gauge added 0.5 percent yesterday, rebounding from the biggest weekly drop in five months. It has surged 133 percent from a 12-year low in 2009 as corporate earnings beat estimates and the Federal Reserve embarked on three rounds of bond purchases to stimulate the economy.

Of the 143 S&P 500 companies that have reported their quarterly results so far, 72 percent have exceeded analysts’ predictions for earnings, data compiled by Bloomberg show.

Profit at S&P 500 companies dropped 1.1 percent in the first three months of the year, according to forecasts compiled by Bloomberg. That would mark the first year-over-year decrease since 2009.

An S&P index of homebuilders jumped 5.6 percent, as all 11 members increased at least 2 percent. Toll Brothers Inc. surged 9.3 percent to $34.13 for the biggest gain since October 2011.

PulteGroup Inc. increased 6 percent to $19.40.

Sales of new U.S. homes advanced in March as near record- low mortgage rates helped the industry complete the strongest quarter since 2008, putting the economy on firmer footing.

All 10 industry groups in the S&P 500 rose, led by a 1.8 percent gain among financial shares.

Bank of America rose 3 percent to 12.07 for the second- biggest gain in the Dow after Morgan Stanley upgraded the second-largest U.S. lender to overweight. The Charlotte, North Carolina bank may trim $16.1 billion in costs over the next three years, exceeding the added $5 billion that the lender may spend on lawsuits, Betsy Graseck wrote today in a research note.

Travelers rose 2.1 percent to $86.35. The second-largest U.S. commercial insurer increased its dividend by 8.7 percent to 50 cents per share, matching a forecast compiled by Bloomberg.

The firm reported first-quarter profit that beat analysts’ estimates on wider margins. Travelers is charging some customers more for coverage and changing policy terms to boost underwriting margins as low bond yields and severe weather pressure earnings.

MetLife Inc. soared 5.5 percent to $37.74. The largest U.S. life insurer increased its dividend for the first time since 2007 after its exit from banking limited oversight from the U.S. Federal Reserve. The firm will pay a quarterly dividend of 27.5 cents per share, up from the previous payout of 18.5 cents.

“Dividend-paying stocks is the area I’m most bullish on,” said Matt McCormick, who helps oversee $9.1 billion as a money manager at Cincinnati-based Bahl & Gaynor Inc. “If you are nervous about the stock market, then at least get paid something while you hold stock.”

Apple advanced 5.2 percent to $427.44 at 4:54 p.m. The iPhone maker said it will raise its quarterly dividend by 15 percent to $3.05 a share and boost its share-repurchase program to $60 billion from $10 billion. The stock rose 1.9 percent to $406.13 in the regular market session.

The company reported its first profit decline since 2003 and forecast revenue that missed analysts’ estimates amid slowing iPhone sales growth and accelerating competition from Samsung Electronics Co.

DuPont Co. rose 4.1 percent to $52.49, the highest since May. The largest U.S. chemical company by market value posted first-quarter earnings that exceeded analysts’ forecasts on record profit from crop seeds and pesticides.

Lockheed Martin Corp. added 1.3 percent to $97.06. The world’s largest defense contractor said first-quarter earnings beat analysts’ estimates while cautioning that 2013 sales may fall at the low end of its prior forecast because of automatic U.S. budget cuts.

The Bloomberg U.S. Airlines Index jumped 4.5 percent as both Delta Air Lines Inc. and US Airways Group Inc. posted better-than-forecast profits in the first quarter, traditionally the industry’s weakest period. Both carriers had paying passengers in more than 81 percent of their available seats, and they wrung out more revenue from each seat flown a mile, a benchmark gauge.

Delta surged 10 percent to $16.72 for its biggest gain since April 2011. Delta hadn’t reported a profit in the first three months of the year since 2000, Chief Financial Officer Paul Jacobson said in a memo to employees. US Airways rose 5 percent to $16.30.

Netflix jumped 24 percent to $216.99, the highest since September 2011. The company said yesterday it gained 2 million new U.S. customers last quarter, reaching 29.2 million. Analysts had estimated Netflix would end the quarter with 29 million online U.S. users, according to the average of seven estimates compiled by Bloomberg.

Coach Inc., the largest U.S. luxury handbag maker, climbed the most since October, adding 9.8 percent to $55.55 as quarterly profit and sales both exceeded analyst estimates. The New York-based company also said its board voted to raise the annual dividend by 15 cents to $1.35 per share.

United Technologies Corp. slid retreated 0.8 percent to $92.89. The company’s chief financial officer said automatic spending cuts by the federal government have started to hurt orders. First-quarter earnings topped analysts’ estimates as sales of aerospace equipment surged.

Staples Inc. fell 4.5 percent to $12.40 after Cleveland Research said government spending cuts may weaken sales at office-supplies companies. Office Depot Inc. slid 1.5 percent to $3.84.

Newmont Mining Corp. dropped 2.9 percent to $32.43, as Goldman Sachs Group Inc. cut its “near-term” outlook for commodities amid prospects for weak demand from China to Europe.

Cliffs Natural Resources Inc., the largest U.S. iron-ore miner, slipped 1.9 percent to $17.32, its lowest in more than four years.

 

Have  a wonderful evening everyone.

 

Be magnificent!

 

Silence is a great benediction, it cleanses the brain, gives vitality to it,

and this silence builds up great energy, not the energy of thought or the energy of machines,

but unpolluted energy, untouched by thought.

It is the energy that has incalculable capacity, skills.

And this is a place where the brain, being very active, can be silent.

That very intense activity of the brain has the quality and the depth

and the beauty of silence.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

Noble deeds and hot baths are the best cure for depression.

-Dodie Smith, 1896-1990

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

 

Dear Friends,

Tangents:

Today is Earth Day.  Time to reflect on this beautiful planet we live on and how we can help it thrive.  There is much to be done.

Fittingly, I saw Edvard Munch’s The Scream at MOMA on the weekend.  It is on display until April 29^th.

Photos of the day – April  22nd, 2013

Bsam Ali, 11, swims in polluted water at a slum area on the outskirts of Sanaa, Yemen. Hundreds of countries mark International Earth Day on April 22 to help raise ecological awareness and to support environmental protection. Hani Mohammed/AP

Members of the King’s Troop Royal Horse Artillery arrive to fire a 41 Gun Royal Salute at Green Park in central London to mark the birthday of Britain’s Queen Elizabeth who turned 87 on Sunday. Toby Melville/Reuters

Market Closes for April 22^nd, 2013

Market  Index	Close	Change
Dow  Jones	14567.17	+19.66    +0.14%
S&P 500	1562.33	+7.08    +0.46%
NASDAQ	3233.554	+27.497    +0.86%
TSX	12094.03	+28.48
		+0.24%

International Markets

Market  Index	Close	Change
NIKKEI	13568.37	+251.89
		+1.89%
HANG  SENG	22044.37	+30.80
		+0.14%
SENSEX	19169.83	+153.37
		+0.81%
FTSE 100	6280.62	-5.97
		-0.09%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.705	1.709
CND.   30 Year Bond	2.366	2.358
U.S.   10 Year Bond	1.6937	1.7015
U.S.   30 Year Bond	2.8756	2.8794

Currencies

BOC Close	Today	Previous
Canadian $	0.97491	0.97404
US   $	1.02574	1.02665
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33996	0.74629
US  $	1.30634	0.76550

Commodities

Gold	Close	Previous
London Gold   Fix	1425.88	1400.95
Oil	Close	Previous
WTI Crude Future	88.76	88.24
BRENT	100.99	99.88

Market Commentary:

Canada

By Eric Lam and Whitney Kisling

April 22 (Bloomberg) — Canadian stocks rose for a third day as rallies in gold and oil boosted commodities producers, offsetting a slump in financial shares.

Centerra Gold Inc. and Semafo Inc. climbed at least 9.5 percent as the precious metal touched a one-week high. Athabasca Oil Corp. advanced 3.4 percent after oil settled at its highest since April 12. Air Canada dropped 13 percent, the most in more than three years, after reporting a first-quarter loss wider than analysts estimated. Finning International Inc., which sells Caterpillar Inc. construction equipment, slid 2.3 percent after the U.S. company cut its 2013 forecast.

The Standard & Poor’s/TSX Composite Index rose 25.13 points, or 0.2 percent, to 12,090.68 at 4 p.m. in Toronto. The benchmark equity gauge has fallen 2.8 percent this year. Trading volume was 22 percent lower than the 30-day average at this time of the day.

“A lot of investors were shocked with what went on last week with oil and gold, and there’s been a little bit of a recovery today that’s giving Toronto a boost,” Irwin Michael, portfolio manager with ABC Funds in Toronto, said in a phone interview. His firm oversees about C$800 million ($780 million).

“We believe the glass is half full, and we wouldn’t be surprised to see the market firm up a bit more by the end of the month.”

Raw-materials producers rose the most in the S&P/TSX, adding 1.4 percent as a group. Gold futures climbed 1.8 percent to settle at $1,438.80 in New York, spurred by demand for bars and gold coins following the biggest price slump in three decades. The precious metal advanced to $1,438.80 earlier in the day, the highest since April 15.

Centerra Gold surged 13 percent, the most in the S&P/TSX, to C$4.18. Semafo gained 9.5 percent to C$1.84.

Energy producers rose 0.9 percent as a group, as oil increased for a third day, adding 0.9 percent to $88.76 a barrel. Athabasca Oil advanced 3.4 percent to C$8.14.

Petrobakken Energy Energy Ltd. jumped 5 percent to C$8.13.

Banks and insurers weighed most on the S&P/TSX, declining 0.5 percent as a group. Royal Bank of Canada, the nation’s largest lender, lost 0.8 percent to C$60.97 and Manulife Financial Corp. dropped 1.5 percent to C$14.03.

Purchases of previously owned houses in the U.S. fell 0.6 percent to a 4.92 million annual rate last month, a sign that the pace of progress in the housing industry is slowing. The median forecast of 75 economists surveyed by Bloomberg forecast an increase in sales to a rate of 5 million.

“The U.S. economy has hit a bit of a soft patch,” said John Goldsmith, deputy head of equities with Montrusco Bolton Investments in Toronto. He helps manage C$5.6 billion with the firm. “The question is, is this all it is? Things aren’t as robust as anticipated in February.”

Air Canada tumbled 13 percent, the most since October 2009, to C$2.62. The Montreal-based company posted an adjusted loss of C$143 million, short of the C$131 million average estimate of five analysts surveyed by Bloomberg. The nation’s largest airline blamed the loss on flight cancellations caused by bad weather.

Finning International, which sells, finances and services Caterpillar construction equipment in Canada, the U.K. and Chile, declined 2.3 percent to C$21.80, the lowest since November 2011. Caterpillar, based in Peoria, Illinois, lowered its full-year forecast as reduced Chinese demand for commodities prompted raw-materials producers to scale back equipment orders.

US

By Nikolaj Gammeltoft

April 22 (Bloomberg) — U.S. stocks rose, after the biggest weekly loss in five months for the Standard & Poor’s 500 Index, as Caterpillar Inc. jumped and a rally in commodity prices spurred energy and raw-material producers.

Caterpillar jumped 2.8 percent after saying it sees increased sales of building equipment and plans more production in China. Halliburton Co. gained 5.6 percent after reporting first-quarter profit that exceeded analysts’ estimates.

Microsoft Corp. soared 3.6 percent after activist investor ValueAct Holdings LP amassed about a $1.9 billion stake. Newmont Mining Corp. added 1.3 percent and Exxon Mobil Corp. advanced 0.7 percent as gold and oil prices rose.

The S&P 500 increased 0.5 percent to 1,562.50 at 4 p.m. in New York. The gauge fell 2.1 percent last week, its biggest drop since November, as earnings from Bank of America Corp. and International Business Machines Corp. missed estimates. The Dow Jones Industrial Average added 19.66 points, or 0.1 percent, to 14,567.17 today. About 5.6 billion shares traded on U.S. exchanges, 12 percent below the three-month average.

“We’re in the middle of earnings season and that continues to be a key driver,” Richard Sichel, who oversees about $1.8 billion as chief investment officer at Philadelphia Trust Co., said in a phone interview. “It’s important to us to hear what management teams are saying, how optimistic or pessimistic they sound about future growth.”

Eight S&P 500 companies including Netflix Inc. and Texas Instruments Inc. posted their quarterly earnings today. Of the 111 that have reported so far, 72 percent have exceeded analysts’ predictions for earnings, data compiled by Bloomberg show. Profit at S&P 500 companies dropped 1.1 percent in the first three months of the year, according to forecasts compiled by Bloomberg. That would mark the first year-over-year decrease since 2009.

Equities slumped earlier as figures from the National Association of Realtors showed purchases of previously owned houses, tabulated when a contract closes, fell 0.6 percent to a 4.92 million annual rate last month. The median forecast of 75 economists surveyed by Bloomberg projected sales would increase to a 5 million rate. Prices climbed, reflecting more demand for higher-priced houses.

“The home sales number was disappointing for the market but we still think the housing market is showing modest improvement,” Thomas Nyheim, a Wilmington, Delaware-based fund manager for Christiana Trust, which oversees about $17 billion, said in a phone interview.

The S&P 500 has surged 131 percent from a 12-year low in 2009 as the Federal Reserve embarked on three rounds of bond purchases to stimulate the economy.

New York Fed Bank President William C. Dudley said European economic weakness and U.S. budget woes mean “more needs to be done” to shore up the global economy and financial regulation.

“In the United States, the good news is that the economic outlook appears to be gradually improving,” Dudley said today at a conference in New York. “For Europe, the near-term macroeconomic outlook seems less bright.”

At a meeting in Washington late on April 19, the Group of 20 finance chiefs didn’t oppose the Bank of Japan’s plan to buy more than 7 trillion yen ($70 billion) of bonds a month. The central bank’s Governor Haruhiko Kuroda said he would proceed with his campaign to end 15 years of deflation. The Bank of Japan aims to increase inflation to 2 percent within two years.

“Winning international understanding gives me more confidence to conduct monetary policy appropriately,” Kuroda told reporters after the meeting. “We will continue our qualitative and quantitative easing for the next two years.”

Caterpillar rose 2.8 percent to $82.71. The world’s largest maker of construction and mining equipment has seen “slightly increasing sales to users for a number of months” in construction, Doug Oberhelman, chairman and chief executive officer, said during a call with analysts. In China, Caterpillar will increase production this quarter after reducing output to let inventory levels fall.

The company also said it will start buying back stock in the second quarter and spend about $1 billion. Caterpillar fell earlier in the day after cutting its 2013 forecast and first- quarter earnings trailed analysts’ earnings estimates.

Microsoft increased 3.6 percent to $30.83. Chief Executive Officer Steve Ballmer is working to deliver more software and services over the Internet to bolster sales amid a global PC slump that’s eroding demand for pre-installed programs.

ValueAct, which has a history of investing in companies it believes are fundamentally undervalued, said that Microsoft can succeed in this effort, aided by the Azure cloud-computing platform.

Halliburton jumped 5.6 percent to $39.29. The world’s largest provider of hydraulic-fracturing services reported first-quarter profit that exceeded analysts’ estimates as the company reduced costs in North America. The company also benefited from lower prices on guar, an ingredient used in hydraulic fracturing to get oil and natural gas from dense rock formations.

Energy and raw-material companies rose the most among 10 S&P industries today, climbing more than 1 percent, while industrial and utility shares had the biggest declines. The S&P GSCI gauge of 24 commodities added 0.3 percent after falling 7.3 percent the past three weeks.

Newmont Mining increased 1.3 percent to $33.40. The price of gold has rebounded after reaching a more than two-year low on April 15. The metal entered a bear market this month amid decreased demand for a hedge against deflation and concern struggling European nations will sell gold to raise cash.

Exxon Mobil Corp. gained 0.7 percent to $88.09 and Chevron Corp. advanced 0.6 percent to $116.57 as West Texas Intermediate crude rose to a one-week high.

International Paper Co. climbed 3.2 percent to $47.15. The world’s largest maker of office paper is in talks about combining its xpedx unit with Unisource Worldwide Inc. to form the biggest distributor of office and copier paper. A deal may be in the form of a so-called Reverse Morris Trust in which International Paper would contribute xpedx’s assets, the Memphis, Tennessee-based company said today in a statement.

Power-One Inc. surged 57 percent to $6.33 after ABB Ltd., the world’s biggest builder of electricity networks, said it will buy the  maker of solar-power inverters for about $1 billion, or about $6.35 a share. The price is 7.7 times Power- One’s earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg.

U.S. equity volatility rose the most in almost four months last week after unexpectedly slow growth in China and a selloff in commodities triggered the biggest stock-market drop since November.

The Chicago Board Options Exchange Volatility Index climbed 24 percent to 14.97 on April 19, the most since December. The index known as the VIX surged 46 percent in four days, briefly erasing its year-to-date decline, before sliding 15 percent on the last day of the week. The VIX fell 3.9 percent to 14.39 today.

“Volatility is getting more sticky, it rushes up without going straight back down which we haven’t seen before this year,” Michael Purves, Greenwich, Connecticut-based Weeden & Co.’s head of derivatives research, said in a phone interview on April 19. “The markets are starting to process that the economic news has been getting softer and that we’re due for a correction. We obviously also had the extraordinary move in gold which has been enhancing volatility across asset classes.”

 

Have  a wonderful evening everyone.

 

Be magnificent!

 

When the life of a man, freed from all distractions, finds its unity in the spirit,

the knowledge of the infinite comes to him immediately and naturally,

like light from a flame.

Rabindranath Tagore,1861-1901

As ever,

 

Carolann

 

Think wrongly if you please, but in all cases

think for yourself.

-Doris Lessing, 1919-

 

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:

As Carolann is out of the office today, I will be writing the Newsletter on her behalf.

This weekend in Victoria BC, the Royal BC Museum is hosting the 2^nd Annual Museum Amplification Project.  Performance artists from Victoria and Vancouver will transform the Royal BC Museum into a visual and audio feast for the senses at the second annual Museum Amplification Project, Saturday April 20^th from 7-9pm. Guests can wander the galleries and experience the Museum through the performances of musicians, poets, dancers and sound artists who put their unique interpretations on the dioramas and exhibitions of the Royal BC Museum. If you are looking for something to do Saturday evening, you might consider attending this event!

Today in History:

1956 – Actress Grace Kelly became Princess Grace of Monaco when she married Prince Rainier III of Monaco. The civil ceremony took place on April 18.

1958 – The San Francisco Giants and the Los Angeles Dodgers played the first major league baseball game on the West Coast.

1960 – Baseball uniforms began displaying player’s names on their backs.

1967 – Surveyor 3 landed on the moon and began sending photos back to the U.S.

1971 – Russia launched the Salyut into orbit around Earth. It was the first space station.

1975 – India launched its first satellite with aid from the USSR.

1977 – Alex Haley received a special Pulitzer Prize for his book “Roots.”

1982 – NASA named Sally Ride to be first woman astronaut.

1982 – NASA named Guion S. Bluford Jr. as the first African-American astronaut.

1989 – A giant asteroid passed within 500,000 miles of Earth. 

“Continuous effort – not strength or intelligence – is the key to unlocking our potential.” – Winston Churchill

Photos of the day – April  19^th, 2013

A woman holds an umbrella as she walks during the traditional Feria de Abril (April fair) in the Andalusian capital of Seville, southern Spain.Marcelo del Pozo/Reuters

Takumi Tachikawa, of Japan, performs with his dough during the freestyle event, part of the Pizza World Championships, in Parma, northern Italy. Marco Vasini/AP

“When I admire the wonders of a sunset or the beauty of the moon, my soul expands in the worship of the creator.” – Mahatma Gandhi

Market Closes for April 19^th, 2013

Market  Index	Close	Change
Dow  Jones	14547.51	+10.37    +0.07%
S&P 500	1555.28	+13.67    +0.89%
NASDAQ	3206.056	+39.694    +1.25%
TSX	12055.85	+59.51
		+0.50%

International Markets

Market  Index	Close	Change
NIKKEI	13316.48	+96.41
		+0.73%
HANG  SENG	22013.57	+501.05
		+2.33%
SENSEX	19016.46	+285.30
		+1.52%
FTSE 100	6286.59	+42.92
		+0.69%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.709	1.704
CND.   30 Year Bond	2.358	2.352
U.S.   10 Year Bond	1.7015	1.6847
U.S.   30 Year Bond	2.8794	2.8597

Currencies

BOC Close	Today	Previous
Canadian $	0.97404	0.97518
US   $	1.02665	1.02545
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33984	0.74636
US  $	1.30506	0.76625

Commodities

Gold	Close	Previous
London Gold   Fix	1400.95	1394.14
Oil	Close	Previous
WTI Crude Future	88.24	87.73
BRENT	99.88	99.59

Market Commentary:

Canada

By Eric Lam and Lu Wang

April 19 (Bloomberg) — Canadian stocks rose, paring a weekly loss, as gains in gold-mining companies, financial shares and Valeant Pharmaceuticals International Inc. offset declines in energy producers.

Valeant climbed 3.8 percent as its takeover target, Galenika AD, reported a narrower loss. Banro Corp. and OceanaGold Corp. jumped at least 8.1 percent as gold rebounded from its biggest slump in 30 years. Turquoise Hill Resources Ltd. surged 9.2 percent after Mongolia’s parliament eased foreign-investment restrictions. TransForce Inc. slipped 2.5 percent after reporting first-quarter sales that missed analysts’ expectations.

The Standard & Poor’s/TSX Composite Index rose 69.21 points, or 0.6 percent, to 12,065.55 at 4 p.m. in Toronto. The benchmark equity gauge fell 2.2 percent this week and has lost 5.4 percent in April.

“Gold had gotten so oversold that a bounce would be completely natural and predictable,” Jamie Robertson, chief investment officer with McLean & Partners Wealth Management Ltd., said on the phone in Calgary. The firm manages about C$1 billion ($974 million). “The financials are starting to reassert themselves.”

Gold for June delivery climbed 0.2 percent to settle at $1,395.60 an ounce in New York. The metal surged earlier in the day to $1,424.70 on signs that jewelers and other users of the metal are taking advantage of the biggest slump in prices since 1980. Banro soared 11 percent to C$1.17 and OceanaGold jumped8.1 percent to C$2.

Nine out of the 10 industries in the S&P/TSX advanced, paced by a 3 percent gain among health-care companies. Energy shares slid 0.4 percent. Trading volume was 12 percent lower than the 30-day average.

Financial shares increased 0.6 percent as a group. Manulife Financial Corp. rose 1.8 percent to C$14.24, paring its loss for the week. Sun Life Financial Inc. added 1.3 percent to C$27.11.

Valeant, Canada’s largest publicly traded pharmaceutical company, climbed 3.8 percent to C$77.54, its highest close since April 2002. Galenika, Serbia’s state-run drugmaker, said its net loss narrowed by 58 percent in 2012 from a year earlier.

Serbia’s government this month picked a unit of Valeant as the only potential bidder for Galenika among five interested companies in a tender. Valeant Pharmaceuticals North America LLC has until April 30 to submit an offer.

Turquoise Hill jumped 9.2 percent to C$5.82 after Mongolia’s parliament removed the need to review investments by non-state-owned companies. Turquoise Hill and its parent, Rio Tinto Group, are developing the Oyu Tolgoi copper and gold project in the country, which has faced delays due to disputes between the miners and the government.

Lundin Mining Corp. lost 0.5 percent to C$3.87. Copper for delivery in three months fell 1.4 percent to $6,990 a metric ton on the London Metal Exchange. That marked a drop of more than 20 percent from the February 2012 closing high, a common definition of a bear market.

Capstone Mining Corp., which owns copper mines in Mexico and northern Canada, declined 2.6 percent to C$1.90. The company is considering about $500 million in acquisitions and has looked at as many as eight mines in the past six months, Chief Executive Officer Darren Pylot said today in a telephone interview with Bloomberg News.

TransForce slipped 2.5 percent to C$19.50, the lowest level since December. The company reported revenue of C$749.7 million, compared with the average estimate of C$785.8 million expected by six analysts surveyed by Bloomberg. TransForce said it doesn’t expect business to improve for the rest of the year.

US

By Nikolaj Gammeltoft and Stephen Kirkland

April 19 (Bloomberg) — U.S. stocks rose, paring the worst weekly drop for the Standard & Poor’s 500 Index since November, amid better-than-estimated earnings and Group of 20 nation talks aimed at bolstering the global economy. The yen weakened, gold climbed above $1,400 an ounce and oil advanced.

The S&P 500 gained 0.9 percent at 4 p.m. in New York, trimming its weekly loss to 2.1 percent. The Dow Jones Industrial Average’s gain was limited to less than 0.1 percent as International Business Machines Corp. plunged the most in eight years after earnings trailed estimates. The yen tumbled at least 1 percent against all 16 major peers. Ten-year Treasury yields climbed two basis points to 1.70 percent. Gold for immediate delivery rose for a fourth day and oil gained for a second, while copper slid into a bear market. The pound weakened as Britain lost its top credit grade at Fitch Ratings.

Capital One Financial Corp., Chipotle Mexican Grill Inc. and Microsoft Corp. climbed at least 3.4 percent to help lead the market higher after reporting quarterly results that beat estimates. G-20 finance chiefs handed Japan leeway to reflate its stagnant economy by indicating its fresh round of monetary stimulus doesn’t contravene a pact to avoid a currency war.

“Earnings have more of an impact on the market at this time of the year,” Lawrence Creatura, a Rochester, New York- based fund manager at Federated Investors Inc., which oversees about $380 billion, said by phone. “Macro issues are taking a bit of a backseat as investors stop to listen to what management teams have to say. Today’s reports have been mainly good with the exception of IBM.”

Trading volume for S&P 500 stocks was 16 percent higher than the 30-day average. U.S. options contracts expire today, leading investors to adjust their holdings of some stocks.

The S&P 500 retreated 3.3 percent from its record close on April 11 through yesterday, spurring concern over what UBS AG strategist Jonathan Golub called a “spring break” in equities.

Stocks began short-term declines in April of each of the last three years. The benchmark measure had surged as much as 136 percent from a 12-year low in 2009 as the Federal Reserve embarked on three rounds of bond purchases to stimulate the economy.

Boeing Co. rallied 2.1 percent after winning U.S. approval to return its 787 Dreamliner to service with a redesigned lithium-ion battery, more than three months into the government’s longest grounding of a commercial model in the jet age.

IBM slid almost 8.3 percent, the most since April 2005, after the computer-services provider posted profit that trailed projections for the first time since 2005, hurt by a hardware slump and failure to sign customers to contracts. IBM, which accounts for 10 percent of the price-weighted Dow average for its heaviest weighting, by itself took 131.7 points off the 30- stock gauge today, limiting the average’s advance to 10 points.

“IBM’s drop is weighing down on the Dow today,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which oversees about $130 billion, said by telephone. “Capital is selectively flowing to where growth is the best. We’re seeing a little of bit growth here in the U.S. and that’s helping investor returns overall.”

General Electric Co., the largest maker of jet engines, fell 4.1 percent and McDonald’s Corp., the biggest restaurant chain by sales, declined 2 percent after profit matched analysts’ estimates.

Earnings beat estimates at 72 percent of the 103 companies in the S&P 500 that posted results so far this season, while less than 50 percent exceeded revenue projections, according to data compiled by Bloomberg.

The Stoxx Europe 600 Index climbed 0.5 percent for the first advance in six days. The gauge lost 2.5 percent this week, the biggest drop since November.

Kazakhmys Plc surged 24 percent and Vedanta Resources Plc rallied 6.1 percent as a gauge of European mining companies rebounded from a 3 1/2-year low. L’Oreal SA rose 4.3 percent after the world’s largest cosmetics maker reported an increase in first-quarter revenue.

The euro was little changed $1.3056, while climbing against 11 of 16 major peers. German Finance Minister Wolfgang Schaeuble said the European Central Bank should reduce liquidity in the euro area, according to Wirtschaftswoche magazine.

The pound weakened against 14 of 16 major peers, losing more than 0.8 percent against the South Korean won and Brazilian real and slipping 0.3 percent to $1.5229. Fitch lowered the U.K. to AA+ from AAA on a weaker economic and fiscal outlook. It cut its growth projection and forecast that debt would peak at 101 percent of gross domestic product in the fiscal year 2015-2016.

The MSCI Emerging Markets Index climbed 1.2 percent, rebounding from the lowest level since November. The gauge has fallen 4.3 percent this year, compared with a 6.2 percent increase in the MSCI World Index of developed countries.

Benchmark indexes in Brazil, the Czech Republic and South Africa rallied more than 1 percent.

Fund flows into developed-market equities beat emerging- market peers for a ninth week, Citigroup Inc. analysts led by Markus Rosgen wrote in a report, citing EPFR data. Inflows into developed equities were dominated by the U.S. and Japan, while emerging-market equities saw $964 million outflows, they wrote.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong jumped 3.1 percent today. China’s economy may rebound in the second and third quarters of the year, Zhu Baoliang, head of the State Information Center’s economic forecast department, said at a forum in Beijing. Taiwan’s Taiex Index climbed 1.8 percent after Taiwan Semiconductor Manufacturing Co., the world’s largest contract maker of chips, forecast record quarterly sales.

China’s yuan strengthened against the dollar after the central bank signaled plans to widen a trading band that’s been limiting appreciation since October. Thailand’s baht advanced to a 16-year high, reversing earlier losses, even after central bank Governor Prasarn Trairatvorakul said the currency has started to move beyond its fundamentals.

The yen depreciated for a fourth day against the dollar, sliding 1.4 percent to 99.55. It also declined 1.4 percent against the euro. Meeting for the first time since the Bank of Japan unleashed new measures aimed at delivering 2 percent inflation within two years, G-20 finance ministers and central bankers said today in Washington that those actions are “intended to stop deflation and support domestic demand.” They echoed their promise of February that nations will refrain from “competitive devaluation.”

Gold for immediate delivery pared gains after climbing as much as 2.6 percent to $1,426.05 an ounce. It fell 9.1 percent on April 15, the most in three decades. Prices fell about 5.5 percent this week, the fourth weekly decline, on concern European governments will follow Cyprus in selling reserves.

Copper slumped into a bear market in London and New York, capping the biggest weekly drop in 16 months, on concern that slowing economies from China to the U.S. will reduce demand as supply of the metal expands. Copper for delivery in three months fell 1.4 percent to close at $6,990 a metric ton on the LME today, marking a 20 percent drop from the February 2012 closing high.

China’s economy has grown by less than 8 percent in the past four quarters, the longest streak in at least 20 years. An index of leading U.S. leading economic indicators released yesterday unexpectedly fell. Copper inventories tracked by the London Metal Exchange almost doubled in 2013.

Fourteen of the 24 commodities tracked by the S&P GSCI Index advanced, sending the gauge up 0.3 percent and  trimming its weekly decline to 2.5 percent. Crude oil for May delivery rose 28 cents to settle at $88.01 a barrel on the New York Mercantile Exchange.

European Union emission permits rose 2.9 percent after yesterday’s 12 percent gain. The allowances dropped 42 percent on April 16 and 17 when the European Parliament rejected a proposed change to the region’s emissions-trading law that would have curbed the supply of permits temporarily.

The won rose versus 15 of 16 major counterparts, climbing to the strongest level versus the yen since October 2008. South Korean Finance Minister Hyun Oh Seok said Japan’s weakening currency is hurting his country’s economy more than North Korean threats.

 

Have  a wonderful weekend everyone!

 

Be magnificent!

 

“Take up one idea. Make that one idea your life – think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success.” Swami Vivekananda

 

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:

As Carolann is out of the office today, I will be writing the Newsletter on her behalf.

You often hear April referred to as the month of “April Showers brings May flowers”, so I thought I would share a poem with you.

April Showers

It is the season of new beginnings…
Spring removes her winter robe
And fades into rainbows of hope;
The sun shines its headlights into April-
And in the garden the effluent scent
Of multiple blooms delights the nose;
The naked trees are no longer bare
Clothed in egg shell, pink and green.
Now entertaining the sometime visit
Of the butterfly and bee;
Showers are but a necessity
Splashed to chase the thirst away
They are never maudlin weeping tears
But always fall on purpose
For they help to bring
Even more blossoms to May;

“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney

Photos of the day – April  18^th, 2013

A model presents a hairstyle during the 7th international festival of hairdressing art, fashion, and design called ‘Crystal Angel’ in Kiev, Ukraine.Gleb Garanich/Reuters

A woman is silhouetted against the sun as she walks past electric cables on pylons, on a street in Colombo, Sri Lanka. Dinuka Liyanawatte/Reuters

“With realization of one’s own potential and self-confidence in one’s ability, one can build a better world.” – Dalai Lama

Market Closes for April 18^th, 2013

Market  Index	Close	Change
Dow  Jones	14537.14	-81.45    -0.56%
S&P 500	1541.61	-10.40    -0.67%
NASDAQ	3166.362	-38.311    -1.20%
TSX	11996.34	+49.05
		+0.41%

International Markets

Market  Index	Close	Change
NIKKEI	13220.07	-162.82
		-1.22%
HANG  SENG	21512.52	-57.15
		-0.26%
SENSEX	19016.46	+285.30
		+1.52%
FTSE 100	6243.67	-0.54
		-0.01%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.704	1.712
CND.   30 Year Bond	2.352	2.360
U.S.   10 Year Bond	1.6847	1.6950
U.S.   30 Year Bond	2.8597	2.8779

Currencies

BOC Close	Today	Previous
Canadian $	0.97518	0.97444
US   $	1.02545	1.02623
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33865	0.74702
US  $	1.30542	0.76604

Commodities

Gold	Close	Previous
London Gold   Fix	1394.14	1377.63
Oil	Close	Previous
WTI Crude Future	87.73	86.68
BRENT	99.59	97.77

Market Commentary:

Canada

By Eric Lam

April 18 (Bloomberg) — Canadian stocks rebounded from a five-month low as crude oil and gold prices climbed and U.S. jobless claims held steady, signaling the labor market is stabilizing.

Kinross Gold Corp. and Alamos Gold Inc. advanced at least 5.9 percent, while Bankers Petroleum Inc. and Legacy Oil + Gas Inc. jumped more than 4.5 percent. Toronto-Dominion Bank and Royal Bank of Canada, the nation’s largest lenders, paced losses in financial shares. TransCanada Corp. gained 1.1 percent after the U.S. State Department said it will post all public comments on its review of the proposed Keystone XL pipeline, reversing an earlier decision.

The Standard & Poor’s/TSX Composite Index rose 49.05 points, or 0.4 percent, to 11,996.34 at 4 p.m. in Toronto, erasing earlier losses of as much as 0.2 percent. The benchmark equity gauge has fallen 3.5 percent this year.

“The labor market continues to hold steady,” Brian Huen, managing partner with Red Sky Capital Management Ltd., said on the phone from Toronto. He helps manage C$55 million ($54 million). “If the recovery fizzles a little bit QE might last longer, which can be seen as a positive. For right now, we’re staying on course that the U.S. economy is recovering.”

Applications for U.S. jobless insurance payments increased by 4,000 to 352,000 in the week ended April 13, in line with the median forecast of economists surveyed by Bloomberg.

Some policy makers with the U.S. Federal Reserve favor pulling back this year on $85 billion in monthly debt-buying, or quantitative easing, as the U.S. economy recovers.

Kinross added 5.9 percent to C$5.43 and Alamos Gold surged 6.5 percent to C$11.16 as gold for June delivery rose 0.7 percent to settle at $1,392.50 an ounce in New York. Gold retail sales tripled across China from April 15 to April 16, the China Gold Association said. Gold prices have slumped 17 percent this year.

Raw-materials producers contributed most to gains in the S&P/TSX, rising 2.3 percent as a group as six of 10 industries advanced. Trading volume was 11 percent higher than the 30-day average.

TD Bank lost 1 percent to C$80 and Royal Bank decreased 0.6 percent to C$61.03 as the S&P/TSX Financials Index fell for a second day.

The Bank of Canada yesterday cut the nation’s growth outlook for 2013 to 1.5 percent from 2 percent and said “economic slack” will persist for more than two years.

TransCanada, which is attempting to build the Keystone XL pipeline in the U.S., rose 1.1 percent to C$48.84 after the U.S. State Department said it will release comments on its review of the proposed project.

The department will also provide additional chances for comment during the National Interest Determination period. The pipeline would help bring Alberta’s oil sands to refineries on the U.S. Gulf Coast.

Joe Oliver, Canada’s natural resources minister, said in Calgary today he is cautiously optimistic the pipeline will be approved and will reach out to government officials and Democratic and Republican lawmakers to lobby for the project when he visits Washington next week.

Bankers Petroleum surged 8.4 percent to C$2.46 and Legacy Oil + Gas gained 4.7 percent to C$5.17. Crude for May delivery advanced 1.2 percent to settle at $87.73 a barrel in New York, the biggest gain since March 26.

Ivanplats Ltd. rose 0.3 percent to C$2.97, paring earlier gains of as much as 7.8 percent after the company said planned development of its Kamoa copper project in the Democratic Republic of Congo will not be affected by a ban on exports of cobalt and copper concentrates announced by the country yesterday.

Ivanplats, based in Vancouver, said its development plans include a smelter that will produce upgraded product, meeting the government’s demands that mining companies add value to the commodities before shipping them.

US

By Stephen Kirkland and Lu Wang

April 18 (Bloomberg) — U.S. stocks fell for a second day amid disappointing earnings reports and data on leading economic indicators and Philadelphia-area manufacturing that trailed estimates. European shares erased earlier gains while gold rose and oil rebounded from a four-month low.

The Standard & Poor’s 500 Index lost 0.7 percent to 1,541.61 at 4 p.m. in New York, its lowest closing level since March 6. The Stoxx Europe 600 Index reversed a 0.7 percent rally to close unchanged. The euro strengthened 0.1 percent to $1.3049. Gold for immediate delivery rebounded for a third day from its worst drop in three decades, climbing 0.8 percent to $1,388.02 an ounce. Oil rallied amid a weaker dollar, while 10- year U.S. Treasury yields fell one basis point to 1.69 percent.

More than $1 trillion has been erased from the value of equities worldwide this week as concern deepened the global recovery was weakening and companies from Bank of America Corp. to Textron Inc. reported disappointing results. Finance ministers from around the world prepared to gather in Washington to discuss policies to support the economy and strengthen financial systems.

“The market was more ripe for hiccups and we’re seeing it,” David Sowerby, who helps oversee about $185 billion at Loomis Sayles & Co. in Bloomfield Hills, Michigan, said by phone. “We had a long run. Sentiment got more bearish and the earnings season has been a series of C plus.”

The S&P 500 has retreated more than 3.2 percent from a record close on April 11, spurring concern over what UBS AG strategist Jonathan Golub called a “spring break” in equities.

U.S. stocks began short-term declines in April during each of the last three years. The S&P 500 fell 9.9 percent between April 2 and June 1 of last year and peaked on April 29, 2011, before a 19 percent slide ending that October. The index tumbled 16 percent from a high in April 2010 to July 2 of that year.

Losses in the S&P 500 today were led by technology, health- care and consumer-discretionary companies, with each group losing more than 1 percent collectively. The Nasdaq 100 Index dropped 1.4 percent to extend its two-day slump to 3.4 percent, the biggest slide in five months. The VIX, as the Chicago Board Options Exchange Volatility Index is known, rose 6.4 percent to 17.56. The benchmark gauge of options prices jumped as much as 10 percent to 18.20 and briefly erased its 2013 loss amid growing demand for protection against declines in stocks.

EBay Inc. sank 5.9 percent, the most since September 2011, as the operator of the largest Internet marketplace reported first-quarter sales that missed some analysts’ estimates.

UnitedHealth Group Inc. slid 3.8 percent as earnings were hurt by rising medical costs and lower government reimbursements.

Morgan Stanley lost 5.4 percent after the firm reported the biggest drop in trading revenue among the largest U.S. banks.

Verizon Communications Inc. advanced 2.8 percent as growth in wireless customers helped profit beat estimates, while PepsiCo Inc. rose 3 percent to a record on better-than-estimated earnings.

After financial markets closed, quarterly results were released from International Business Machines Corp., Microsoft Corp. and Google Inc. IBM slid 3.6 percent in extended trading at 4:57 p.m. in New York after first-quarter profit missed estimates amid a slowdown in hardware sales. Microsoft climbed 2.4 percent after hours as cost controls helped boost earnings above projections. Google rose 1.4 percent as increased spending from advertisers on mobile devices helped earnings beat estimates.

Earnings beat estimates at 75 percent of the 85 companies in the S&P 500 that posted results so far this season, while 51 percent topped revenue projections, according to data compiled by Bloomberg.

“It’s an important earnings season, with market participants trying to see if corporate earnings and forecasts are going to be in-line with the weakening global macro data,” Serge Berger, a Zurich-based trader at Blue Oak Advisors LLC, said in a phone interview.

The index of U.S. leading indicators unexpectedly declined in March for the first time in seven months, a sign the world’s largest economy will cool. The Conference Board’s gauge of the outlook for the next three to six months fell 0.1 percent in March after climbing 0.5 percent in the prior two months. The median forecast of economists surveyed by Bloomberg called for a 0.1 percent increase.

The Federal Reserve Bank of Philadelphia’s general economic index fell to 1.3 in April from 2 the prior month. Readings greater than zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware. The median forecast of economists surveyed called for a reading of 3. The Labor Department reported applications for jobless insurance payments increased by 4,000 to 352,000 in the week ended April 13, in line with the median forecast.

The Stoxx 600 ended unchanged today after closing yesterday at the lowest level of the year. The index tumbled 3.8 percent in four days, the most since a 4.4 percent slump in July.

Debenhams Plc rallied the most in more than five months after the U.K.’s second-biggest department-store chain gained market share in the first half. Syngenta AG advanced 3 percent as the chemical company’s Brazilian operations boosted revenue.

Nokia Oyj tumbled 8.3 percent after the mobile-phone maker posted results that disappointed investors.

GlaxoSmithKline Plc climbed 3.2 percent to the highest in 11 years after advisers to the U.S. Food and Drug Administration recommended that experimental treatment Breo Ellipta be approved to treat a lung disorder.

Spain’s 10-year bond yield dropped one basis point to 4.67 percent, paring a drop of as much as eight points, and Italy’s added one point to 4.26 percent.

Spain sold 2023 bonds at an average yield of 4.612 percent, the least since September 2010. France raised 7.91 billion euros in a debt sale, with the yield on five-year notes falling to a record low auction rate of 0.73 percent.

The MSCI Emerging Markets Index declined 0.4 percent. South Korea’s Kospi index sank 1.2 percent as LG Display Co. tumbled 4.8 percent, the most in four months, after audio-chip maker Cirrus Logic Inc. reported an inventory glut that suggests iPhone sales may fall short of estimates. Hon Hai Precision Industry Co., which assembles Apple Inc.’s iPhone, dropped 1.3 percent in Taipei to the lowest level since Aug. 3.

Russia’s Micex Index was little changed while Brazil’s Bovespa rallied 0.5 percent Gol Linhas Aereas Inteligentes SA jumped almost 11 percent.

Oil for May delivery rose 1.2 percent to $87.73 a barrel in New York amid a weaker dollar and signals that recent declines were exaggerated. The 14-day relative-strength index for oil slid to 29.9 yesterday, a sign prices may have fallen too far.

Gold for immediate delivery advanced for a third day after the biggest plunge in three decades. The S&P GSCI gauge of 24 commodities climbed 0.8 percent as natural gas, coffee and heating oil also added more than 2 percent. European Union emission permits rebounded 12 percent after tumbling 42 percent the previous two days.

The gain in gold came amid signs that demand is rebounding among consumers and investors. The China Gold Association said that retail sales soared on April 15 and April 16, and the All India Gems & Jewellery Trade Federation said that demand climbed to the highest this year.

Gold’s price peak in 2011 probably signals the end of China, emerging economies and commodities leading the financial markets, according to Bank of America Merrill Lynch.

The precious metal, which rose to an all-time high of $1,921.15 an ounce in London trading on Sept. 6, 2011, has slumped 17 percent this year. In 1980, a peak in gold prices preceded by several quarters the end to a bear market for bonds and a peak in inflation and oil prices, the bank’s investment strategists led by Michael Hartnett wrote in a report today.

Have  a wonderful evening everyone!

 

Be magnificent!

 

“Life is a series of experiences, each one of which makes us bigger, even though sometimes it is hard to realize this. For the world was built to develop character, and we must learn that the setbacks and grieves which we endure help us in our marching onward.” – Henry Ford

 

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:

Spring makes its own statement, so loud and clear that the gardener seems to be only one of the instruments, not the composer.  –Geoffrey B. Charlesworth.

An interesting item from today’s G & M:

Room aplenty for thoughts

“The original 160-character size limit for text messages is credited to German engineer Friedhelm Hillebrand,” says The Guardian.  “He arrived at the number by typing a random series of random questions and thoughts into his typewriter (such as ‘What am I doing with my life?’) and counting the characters involved.  He found 160 to be ‘perfectly sufficient’ for expressing almost any thought or question.   Later studies of the length of postcards and business telegrams confirmed his theory and the limit became industry standard in 1986.

Though the limit no longer applies to texts, its influence can still be seen in Twitter’s even more stringent 140-character cap.” –Michael Kesteron, Social Studies, 04/16/2013

April 16^th:

124 years ago, Charlie Chaplin was born.

96 years ago, Lenin, leader of the Bolshevik Party, returned to Petrograd, after spending a decade in exile, to lead the Russian Revolution.

49 years ago, The Rolling Stones, released their self-titled debut album.

23 years ago, a concert to celebrate nelson Mandela’s release from prison was held at Wembly Stadium.

17 years ago, Sarah Ferguson, Duchess of York, and Prince Andrew announced their plans to divorce.

Photos of the day – April  16th, 2013

The Eiffel Tower peeks through blossoming flowers in Paris, France. Jacques Brinon/AP

A member of Charlie Circle, a Charlie Chaplin fan-club gets made up before the annual parade to celebrate the birthday of Charlie Chaplin, in Adipur, Gujarat state, India. Canes in hand and bowler hats firmly in place, dozens of impersonators tramped through the streets of this small port town to celebrate the birthday of the legendary comic actor and filmmaker. Ajit Solanki/AP

Market Closes for April 16th, 2013

Market  Index	Close	Change
Dow  Jones	14756.78	+157.58    +1.08%
S&P 500	1574.57	+22.21    +1.43%
NASDAQ	3264.629	+48.139    +1.50%
TSX	12119.92	+115.04
		+0.96%

International Markets

Market  Index	Close	Change
NIKKEI	13221.44	-54.22
		-0.41%
HANG  SENG	21672.03	-100.64
		-0.46%
SENSEX	18744.93	+387.13
		+2.11%
FTSE 100	6304.58	-39.02
		-0.62%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.737	1.711
CND.   30 Year Bond	2.382	2.359
U.S.   10 Year Bond	1.7224	1.6798
U.S.   30 Year Bond	2.9092	2.8590

Currencies

BOC Close	Today	Previous
Canadian $	0.97925	0.97719
US   $	1.02119	1.02334
Euro Rate  1 Euro=		Inverse
Canadian   $	1.34613	0.74287
US  $	1.31820	0.75861

Commodities

Gold	Close	Previous
London Gold   Fix	1369.30	1352.65
Oil	Close	Previous
WTI Crude Future	88.72	88.71
BRENT	100.52	99.71

Market Commentary:

Canada

By Eric Lam

April 16 (Bloomberg) — Canadian stocks rose for the first time in four days after U.S. housing starts jumped more than estimated, crude erased losses and gold rallied from its biggest drop since 1980.

Suncor Energy Inc., Canada’s largest oil producer, jumped 3.3 percent. Gabriel Resources Ltd. and New Gold Inc. climbed at least 3 percent. First Quantum Minerals Ltd. surged 9.3 percent after copper rose from its lowest level in almost 18 months.

Bank of Nova Scotia and Bank of Montreal each rose 1.4 percent as financial stocks snapped three days of losses.

The Standard & Poor’s/TSX Composite Index rose 115.04 points, or 1 percent, to 12,119.92 at 4 p.m. in Toronto, rebounding from its biggest loss of 2013 yesterday. The benchmark equity gauge dropped 4.2 percent over three days.

“The U.S. housing market is in significantly better shape than two to three years ago, and their numbers will continue to improve,” David Cockfield, fund manager with Northland Wealth Management, said from Toronto. The firm manages C$225 million ($220 million). “Yesterday was pretty extreme. The market is waiting to see what the next move is as far as gold is concerned. Crude probably overreacted to the gold story.”

New-home construction in the U.S. jumped 7 percent in March to a 1.04 million annual rate, the most since June 2008, after a revised 968,000 pace in February that was larger than previously reported, Commerce Department figures showed today in Washington. The median estimate of 80 economists surveyed by Bloomberg called for 930,000.

Banks and energy producers contributed most to gains in the S&P/TSX as nine of 10 industries advanced. Trading volume was 4.7 percent higher than the 30-day average at this time of the day.

Bank of Nova Scotia rose 1.4 percent to C$57.70 and Bank of Montreal gained 1.4 percent to C$63.16 as the S&P/TSX Financials Index snapped a three-day losing streak. The group is up 1.5 percent this year.

Suncor rose 3.3 percent to C$28.41 and Cenovus Energy Inc. advanced 1.4 percent to C$29.44 as crude for May deliver rose 1 cent to settle at $88.72 a barrel in New York to erase earlier losses of as much as 3 percent.

Gabriel Resources added 3.6 percent to C$1.44 and New Gold increased 3 percent to C$6.95. Gold for June delivery gained 1.9 percent to close at $1,387.40 an ounce in New York, rebounding from a two-day, 13 percent plunge. Gold has fallen 17 percent this year, threatening to end a 12-year rally.

First Quantum Resources surged 9.3 percent to C$17.03 and Teck Resources Ltd., Canada’s largest diversified miner, rose 2.3 percent to C$26.75. Copper for delivery in May added 1 percent to settle at $3.3055 a pound in New York.

US

By Inyoung Hwang and Lu Wang

April 16 (Bloomberg) — U.S. stocks rallied, with the Standard & Poor’s 500 Index rebounding from its biggest drop since November, as housing starts and earnings from Coca-Cola Co. to Johnson & Johnson topped estimates.

All 10 industry groups advanced as raw-materials and consumer-staples companies gained the most, rising at least 1.7 percent. Coca-Cola jumped 5.7 percent as Latin American sales volume increased. Johnson & Johnson added 2.1 percent as new drugs and the acquisition of Synthes Inc. boosted sales.

The S&P 500 climbed 1.4 percent to 1,574.50 at 4 p.m. in New York, for the largest increase since Jan. 2. The equity benchmark index plunged 2.3 percent yesterday, its biggest tumble since Nov. 7, after China’s economy grew at a slower pace than forecast and a slump in gold weighed on commodity shares.

The Dow Jones Industrial Average rose 157.58 points, or 1.1 percent, to 14,756.78 today. About 6.4 billion shares traded on U.S. exchanges, in line with the three-month average.

“The almost under-the-radar improvement in housing is one of the most important positive elements in the economy,” Stephen Wood, who helps manage about $163 billion as the New York-based chief market strategist for North America at Russell Investments, said by telephone. “It’s balancing off the punctuations of volatility,” he said. “There is an economy in the U.S. which we don’t see going into recession, corporate profitability is in a maturing cycle but continues to come in positive, and the Federal Reserve’s accommodative.”

New-home construction in the U.S. jumped more than forecast in March as multifamily projects climbed to the highest level in more than seven years, according to Commerce Department figures.

Separate data showed the cost of living declined in March for the first time in four months as cheaper gasoline and clothing kept inflation in check. Factory production unexpectedly dropped, adding to recent signs that manufacturing is cooling.

The International Monetary Fund cut its global growth forecast and urged European policy makers to use “aggressive” monetary policy as a second year of contraction leaves the euro area’s recovery lagging behind the rest of the world. The global economy will expand 3.3 percent this year, less than the 3.5 percent forecast in January, the Washington-based fund said, trimming its prediction for this year a fourth consecutive time.

U.S. equities rallied last week, sending the S&P 500 to a record, amid optimism that global stimulus efforts and corporate earnings growth will continue to power the four-year bull market. Fed Bank of New York President William C. Dudley said today that a slowdown in the pace of employment growth in March highlights the need to maintain the pace of bond purchases.

“We’re in a little bit of a sweet spot where the economic data is good enough to keep us out of fears of a recession, but not so good that the Federal Reserve is going to start to tighten in the near future,” Brad Sorensen, director of market and sector analysis at San Francisco-based Charles Schwab Corp., said by telephone. His firm has $2.08 trillion in client assets.

“We saw a lot of tempering of expectations in the pre- announcement season, and that set up the potential for beating expectations when the numbers come in.”

Some 12 companies on the S&P 500 report earnings today. Of the 43 stocks that have reported their financial results so far this season, 71 percent have beaten estimates for profit and 56 percent have exceeded forecasts for sales.

The Chicago Board Options Exchange Volatility Index, or VIX, fell 19 percent to 13.96. The VIX, which moves in the opposite direction to the S&P 500 about 80 percent of the time, surged 43 percent yesterday, the most since August 2011, as U.S. stocks tumbled. Stocks extended losses yesterday as bombs killed three people near the finish line of the Boston Marathon, while almost all of the day’s decline came before the incident.

The Morgan Stanley Cyclical Index advanced 1.9 percent while the Dow Jones Transportation Average rallied 2.2 percent.

The Russell 2000 Index of small companies climbed 1.8 percent after tumbling 3.8 percent yesterday.

Raw-materials producers in the S&P 500 climbed 1.9 percent, the most among 10 industries. Gold gained 1.9 percent as some investors deemed a 13 percent plunge over two days to be excessive and Central Bank of Sri Lanka Governor Ajith Nivard Cabraal said that policy makers may take the opportunity to buy.

Vulcan Materials Co. jumped 6.8 percent to $48.69. The producer of construction aggregates was raised to buy from neutral by Todd Vencil, an analyst at Sterne, Agee & Leach Inc.

International Paper Co. climbed 4.7 percent to $47.47. The world’s largest maker of cardboard packaging was rated outperform, an equivalent of buy, in new coverage at Macquarie Group Ltd.

Coca-Cola rose 5.7 percent, the most since February 2009, to $42.37. Excluding some items, profit was 46 cents a share, compared with the 44-cent average of 14 analysts’ estimates compiled by Bloomberg. The company also announced a deal to sell some bottling distribution rights in North America.

Johnson & Johnson added 2.1 percent to $83.44. The world’s largest maker of health-care products said earnings excluding one-time items were $1.44 a share, topping by 5 cents the average of 11 analysts’ estimates compiled by Bloomberg.

The Bloomberg U.S. Airlines Index rallied 5.6 percent, the most since October 2011. All of its 10 members gained. Delta Air Lines Inc. rose 6.4 percent to $15.87 while United Continental Holdings Inc. added 6.1 percent to $30.86.

Alaska Air Group Inc. jumped 7.9 percent to $61.12 after Deutsche Bank AG boosted the stock to buy from hold.

An S&P index of homebuilders climbed 2.8 percent.

PulteGroup Inc. increased 4.2 percent to $18.60 while Lennar Corp. added 2.4 percent to $38.70.

J.C. Penney Co. gained 5.6 percent to $15.19. The retailer is exploring ways to borrow against its real estate holdings to help raise cash, two people with knowledge of the situation said. The company and its financial advisers are considering options including spinning off real estate into a new subsidiary that could issue debt, said one of the people, who asked not to be named because the matter is private.

W.W. Grainger Inc. jumped 7.2 percent to a record $241.88.

The hardware supply distributor boosted the low end of its full- year profit and sales forecasts as first-quarter earnings beat analysts’ estimates.

Goldman Sachs Group Inc. fell 1.6 percent to $144.10. The Wall Street bank that generates the highest percentage of revenue from trading dropped after revenue from that business fell more than its rivals. First-quarter revenue from trading stocks and fixed-income products fell 12 percent to $5.22 billion, excluding accounting charges. That missed the estimate of $5.48 billion from Oppenheimer & Co.’s Chris Kotowski and $5.25 billion from Credit Suisse Group AG’s Howard Chen.

Citigroup yesterday reported that fixed-income trading rose 69 percent from the fourth quarter, topping analysts’ estimates.

JPMorgan, the biggest U.S. bank by assets, reported last week that trading revenue fell 5 percent. Bank of America Corp., the second-largest lender, is set to release results tomorrow.

Morgan Stanley, the sixth-biggest bank, is due on April 18.

U.S. Bancorp slipped 1.8 percent to $32.72. The nation’s largest regional lender reported first-quarter revenue that missed analysts’ estimates. U.S. Bancorp and Goldman Sachs had the biggest declines in the S&P 500 today.

Yahoo! Inc. dropped 3.7 percent to $22.92 in extended trading as of 4:44 p.m. New York time. After the market close, the biggest U.S. Web portal forecast sales that fell short of analysts’ estimates as it continued to lose advertisers to Google Inc. and Facebook Inc.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

We encounter this surprising paradox between us:

the Whole appears as a multitude,

the appearance is opposite to the truth,

and yet it is inseparably linked.

Rabindranth Tagore, 1861-1901

As ever,

 

Carolann

 

Whether you think you can or think

you can’t, you’re right.

-Henry Ford, 1863-1947

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7