Month: May 2013

Dear Friends,

Tangents:

Just spent a few days in England, touring beautiful gardens and attending the Chelsea Flower Show, which celebrated its 100^th anniversary this year.  It has been a cold and damp spring, so gardens are six weeks behind, meaning lots of beautiful tree blossoms, tulips still blooming, and most other spring blooms which are normally over by now.  We flew to Krakow for a few days before returning home last night.  Krakow is a very beautiful city with many medieval buildings and the largest medieval square in Europe.  Ever since Steven Spielberg’s movie, Shindler’s List was released so many years ago, Shindler’s factory has become an interest destination for visitors to the city.  We didn’t visit the factory, but we did go to Auschwitz and Birkenau, something that will chillingly stay with me forever.

And on this day in…

1431 – Joan of Arc was burned at the stake for heresy, becoming a martyr for France and eventually a saint.

1672 – Peter the Great was born.

1783 – The first US newspaper was published.

Bureaucracy defends the status quo long past the time when the quo has lost its status. –Laurence Peter, 1919-1990.

Photos of the Day – May 30^th, 2013

A chipping sparrow tugs on some loose threads of weathered clothing while gathering nest-building materials in a garden in Freeport, Maine. Robert F. Bukaty/AP

Archers of the Purbrook Bowmen, dressed in Tudor looking clothes, fire a volley of flaming arrows from Southsea Castle into The Solent, towards where the Mary Rose sank in 1545, at Portsmouth on the south coast of England. Henry VIII’s flagship sank during a battle against the French navy and was raised from the seabed in 1982. Chris Ison/PA/AP

Market Closes for May 30th, 2013

Market  Index	Close	Change
Dow  Jones	15324.53	+21.73    +0.14%
S&P 500	1654.41	+6.05    +0.37%
NASDAQ	3491.297	+23.781    +0.69%
TSX	12746.55	+13.94
		+0.11.%

International Markets

Market  Index	Close	Change
NIKKEI	13589.03	-737.43
		-5.15%
HANG  SENG	22484.31	-70.62
		-0.31%
SENSEX	20215.40	+67.76
		+0.34%
FTSE 100	6656.99	+29.82
		+0.45%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.066	2.070
CND.   30 Year Bond	2.640	2.645
U.S.   10 Year Bond	2.1110	2.1162
U.S.   30 Year Bond	3.2712	3.2643

Currencies

BOC Close	Today	Previous
Canadian $	0.97102	0.96625
US   $	1.02985	1.03493
Euro Rate  1 Euro=		Inverse
Canadian   $	1.34363	0.74425
US  $	1.30469	0.76647

Commodities

Gold	Close	Previous
London Gold   Fix	1413.75	1394.60
Oil	Close	Previous
WTI Crude Future	93.61	93.13
BRENT	101.85	102.15

Market Commentary:

Canada

By Eric Lam

May 30 (Bloomberg) — Canadian stocks rose as gold producers climbed on rising bullion prices, offsetting losses among lenders after Royal Bank of Canada reported weaker-than- estimated earnings.

Detour Gold Corp. and Barrick Gold Corp. jumped at least 6.4 percent as the metal rallied to a two-week high on speculation the U.S. will maintain stimulus spending. Royal Bank slid 2.1 percent after earnings trailed analysts’ forecasts.

Talisman Energy Inc. advanced 1.9 percent after saying it may reduce its stake in some properties.

The Standard & Poor’s/TSX Composite Index rose 17.28 points, or 0.1 percent, to 12,749.89 at 3:02 p.m. in Toronto, erasing earlier losses of as much as 0.1 percent. The index has gained 2.6 percent this year. Trading volume was 15 percent higher than the 30-day average at this time of the day.

“Gold has sparked a nice couple-day comeback,” Barry Schwartz, fund manager with Baskin Financial Services Inc., said from Toronto. He helps manage C$500 million ($485 million) with the firm. “It’s not a no-growth or negative growth environment, which is how they are being priced,” he said, referring to bank earnings. “They’re being priced as if we’re headed into some kind of nasty, negative downturn.”

Detour Gold advanced 6.4 percent to C$10.64 and Barrick Gold, the world’s largest producer of the metal, jumped 6.6 percent to C$21.83. Gold futures rose 1.5 percent to $1,412 an ounce in New York, headed for the biggest gain since May 23.

The U.S. Federal Reserve has said it may slow its $85 billion of monthly debt purchases if the economy shows sustained improvement.

Data today showed the U.S. economy expanded less than previously estimated, growing at a 2.4 percent annualized rate in the first quarter, as slower inventory building and cutbacks in government spending overshadowed the biggest gain in consumer purchases since the end of 2010. Initial jobless claims rose more than expected, a separate report showed.

Raw-materials producers paced gains in the S&P/TSX, rising 3 percent as a group and heading for a seven-week high.

Silvercorp Metals Inc. advanced 6 percent to C$3.20 and Silver Standard Resources Inc. rallied 5.5 percent to C$8.30 as the metal rose 1.2 percent to $22.72 an ounce.

Royal Bank slumped 2.1 percent to C$62.67 after reporting second-quarter adjusted earnings of $1.31 a share, short of the C$1.32 average estimate of 12 analysts surveyed by Bloomberg.

Talisman Energy added 1.9 percent to C$12.40 after CEO Hal Kvisle said at a conference in New York the company may reduce its stakes in Kurdistan and in the North Sea. Foreign buyers would prefer joint ventures on its Duvernay shale assets in western Canada, Kvisle said.

Athabasca Oil Corp. jumped 8.2 percent to C$6.90 and Niko Resources Ltd. surged 11 percent to C$9.34 as crude rose 0.4 percent to $93.48 a barrel in New York.

US

By Inyoung Hwang

May 30 (Bloomberg) — U.S. stocks rose, following the Dow Jones Industrial Average’s biggest drop in four weeks, as weaker-than-expected data on economic growth and jobless claims boosted speculation the Federal Reserve will maintain stimulus.

Financial companies gained the most out of 10 groups in the Standard & Poor’s 500 Index, increasing 1.1 percent. Bank of America Corp. jumped 2.6 percent for the biggest advance in the Dow. NV Energy Inc. surged 23 percent after Warren Buffett’s MidAmerican Energy Holdings Co. said it will pay $5.6 billion for Nevada’s biggest utility. Clearwire Corp. rallied 29 percent after Dish Network Corp. raised its bid for the company.

The S&P 500 advanced 0.4 percent to 1,654.41 in New York.

The Dow added 21.73 points, or 0.1 percent, to 15,324.53. About 6.5 billion shares traded hands on U.S. exchanges today, or 3.7 percent more than the three-month average.

“The take away from today’s statistics is that there’s going to continue to be a bias to keep QE in place,” Matthew Kaufler, fund manager at Federated Investors Inc. in Rochester New York, said by telephone. The firm manages about $380 billion. “As long as that perception exists, it’ll be positive for financial assets.”

The S&P 500 sank 1.1 percent last week as Fed Chairman Ben S. Bernanke said the central bank could reduce monetary stimulus, known as quantitative easing, if officials see signs of sustained improvement in growth. Data earlier this week showed consumer confidence climbed to the highest level since 2008 and house prices jumped the most in seven years.

U.S. equities advanced today after data that missed estimates fueled speculation the Fed will continue to support the world’s largest economy through bond buying. Gross domestic product expanded at a 2.4 percent annualized rate in the first quarter, less than the estimated 2.5 percent. Separate data showed more Americans filed claims for unemployment insurance payments last week, and an index of pending home sales rose less than forecast in April.

“Bernanke was misunderstood,” Patrick Spencer, head of U.S. equity sales at Robert W. Baird & Co. in London, said in an interview today. “Though his testimony implied that if the Fed curtails bond purchases too soon a premature exit would hurt the stock market, he said he’ll only start to cut that back if economic growth is sustainable. You’ve only had a few indicators that have shown that so far. The jury is still out.”

The S&P 500 has advanced 3.6 percent so far in May, poised for a seventh month of gains. That’s the longest winning streak since September 2009. The gauge has surged 145 percent since March 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases from the Federal Reserve.

Equity futures retreated as much as 0.4 percent earlier today as Japan’s Topix sank 3.8 percent to extend losses from its May 22 high to more than 10 percent, the threshold for a correction. Japanese stock-index futures climbed following a report that the nation’s public pension fund may boost its equities holdings.

“If you see that pullback continue, that’s a risk to the U.S. market,” Gary Flam, who helps oversee $7 billion at Bel Air Investment Advisors LLC in Los Angeles, said of Japan’s stock market by phone. “It’s been a tailwind over the last six months. Right now, the equity markets in the U.S. have been ignoring it, but if it continues, it’s a risk near term.”

The Chicago Board Options Exchange Volatility Index, or VIX, slumped 2 percent to 14.53. The equity volatility gauge, which moves in the opposite direction as the S&P 500 about 80 percent of the time, is down 19 percent for the year after rising 12 percent last week.

Six out of 10 groups in the S&P 500 advanced today. The KBW Bank Index jumped 1.4 percent as all 24 lenders in the gauge rose. The measure closed at its highest level since October 2008. Bank of America climbed 2.6 percent to $13.83, its highest in more than two years.

Utility stocks increased 0.2 percent. The gain today snapped a five-day streak of losses spurred by rising Treasury yields that made dividends paid by utility companies less attractive.

NV Energy rallied 23 percent to $23.62. MidAmerican Energy, a subsidiary of Buffett’s Berkshire Hathaway Inc., agreed to buy the Las Vegas-based energy producer for $23.75 a share in cash.

The deal would make MidAmerican the largest U.S. utility by customer accounts.

Clearwire jumped 29 percent to $4.50 as Dish Network raised its takeover bid for the company to $4.40 a share in cash. The satellite-TV provider had previously offered $3.30 a share for Clearwire, leading Sprint Nextel Corp. to raise its bid to $3.40 last week.

EMC Corp. gained 5.4 percent to $24.93. The world’s biggest maker of storage computers said it plans to buy back $6 billion of its own shares, six times more than the company had initially authorized earlier this year. EMC also said it will pay investors a quarterly dividend of 10 cents a share in July.

First Solar Inc. jumped 6.6 percent, the most in the S&P 500, to $55.15. The largest U.S. solar manufacturer by shipments was lifted to a buy from neutral at Goldman Sachs Group Inc., which cited visibility on near-term earnings and a project backlog. MEMC Electronic Materials Inc. added 9.6 percent to $8.35. The second-biggest U.S. supplier of polysilicon was added to Goldman’s conviction buy list.

Alcoa Inc. slipped 1.1 percent to $8.49. Moody’s Investors Service lowered its rating on the debt of the largest U.S. aluminum producer to Ba1 from Baa3, after the price of the metal has declined as global production exceeds demand.

Baker Hughes Inc. slumped 1.9 percent to $46.50, while Halliburton Co. slid 2.2 percent to $42.63. Morgan Stanley cut its rating on the global oil services drilling and equipment sector to in-line from attractive, citing a slowdown in key revenue drivers. Both companies were lowered to underweight from equal-weight.

Big Lots Inc. sank 9 percent to $34.93. The discount retailer cut its forecast for annual earnings from continuing operations to no more than $3.12 a share. That compares to an earlier projection of as much as $3.25 and falls short of analysts’ average estimate of $3.16.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

The lamp is empty; the oil is used up.

The tambourine is dead, the dancer lies down,

The fire is out, and no smoke rises from it.

The soul is absorbed into the Unique, and there is no longer a duality.

Kabir, 1440-1518

As ever,

 

Carolann

 

Always remember that the future comes

one day at a time.

-Dean Acheson, 1893-1971

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 this afternoon, I will be sending the newsletter on her behalf.

Are you looking for a way to spice up your salads?? I came across this recipe and wanted to share it with you.  It’s called the Caribbean Grill Shrimp Salad.

Ingredients

2 tablespoons orange marmalade

1 tablespoon packed dark brown sugar

Kosher salt

Zest of 1 lime

1 tablespoon dark rum

1 teaspoon ground coriander

1/2 teaspoon red pepper flakes

1 pound raw large shrimp, peeled

2 ears corn, husked

10-ounce container cocktail (small) tomatoes

Olive oil

Ground black pepper

1 clove garlic, minced

Zest of 1 orange

8 slices of baguette

1 medium jicama, peeled and diced

1 avocado, pitted, peeled and diced

Juice of 2 limes

1 bunch cilantro, leaves and stems, roughly chopped

4 ounces soft goat cheese

Heat a grill to medium-high.

In a small bowl, stir together the marmalade, brown sugar, 1 teaspoon of salt, the lime zest, rum, coriander and red pepper flakes. Add the shrimp, stirring to thoroughly coat.

Arrange the corn and tomatoes on a rimmed baking sheet and drizzle with olive oil. Sprinkle with salt and black pepper.

In a small bowl, stir together the garlic, orange zest and 2 tablespoons of olive oil. Brush over both sides of each slice of baguette.

Arrange the shrimp, ears of corn, and tomatoes on the grill and cook until the shrimp are cooked through and pink and the corn and tomatoes are beginning to char. Add the baguette slices and grill until lightly charred. Transfer to a platter and allow to cool slightly.

Meanwhile, in a large bowl, toss together the jicama, avocado and lime juice.

Slice the corn kernels off the cobs. To do this, one at a time stand each ear on its wide end and use a knife to saw down length of the cob. Add the kernels to the jicama-avocado mixture. Add the tomatoes, shrimp and cilantro. Stir gently. Crumble the goat cheese over the top and serve with the toasted bread.

Let me know how yours turns out!!!

“When you’ve seen beyond yourself, then you may find, peace of mind is waiting there.” – George Harrison

Photos of the day – May 29^th, 2013

Workers sit on the ground as they wait for the start of a groundbreaking ceremony for the third Bosphorus bridge linking the European and Asian sides of Istanbul, Turkey. Murad Sezer/Reuters

Beachgoers stroll along the Fort Kochi beach while holding umbrellas during a rain shower in the southern Indian city of Kochi. India’s weather office has forecast an average monsoon in the country in 2013. Sivaram V/Reuters

Market Closes for May 29^th, 2013

Market  Index	Close	Change
Dow  Jones	15302.80	-106.59    -0.69%
S&P 500	1648.36	-11.70    -0.70%
NASDAQ	3467.515	-21.373    -0.61%
TSX	12732.61	-17.91
		-0.14%

International Markets

Market  Index	Close	Change
NIKKEI	14326.46	+14.48
		+0.10%
HANG  SENG	22554.93	-369.32
		-1.61%
SENSEX	20147.64	-13.18
		-0.07%
FTSE 100	6627.17	-134.84
		-1.99%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.070	2.076
CND.   30 Year Bond	2.645	2.665
U.S.   10 Year Bond	2.1162	2.1652
U.S.   30 Year Bond	3.2643	3.3217

Currencies

BOC Close	Today	Previous
Canadian $	0.96625	0.96120
US   $	1.03493	1.04036
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33910	0.74677
US  $	1.29396	0.77282

Commodities

Gold	Close	Previous
London Gold   Fix	1394.60	1380.75
Oil	Close	Previous
WTI Crude Future	93.13	95.01
BRENT	102.15	104.15

Market Commentary:

Canada

By Eric Lam

May 29 (Bloomberg) — Canadian stocks fell for the first time in four days after the International Monetary Fund cut its projections for economic growth in China, the nation’s second- largest trading partner.

Copper Mountain Mining Corp. declined 1.8 percent as the price of the industrial metal retreated. Enbridge Inc. and Encana Corp. lost at least 0.9 percent as oil fell to a four- week low. Bank of Montreal, Canada’s fourth-biggest lender, dropped the most in almost a year after second-quarter profit missed expectations. BRP Inc., maker of Ski-Doo snowmobiles and three-wheeled motorcycles, jumped 16 percent from its initial offering price in its trading debut today.

The Standard & Poor’s/TSX Composite Index lost 17.91 points, or 0.1 percent, to 12,732.61 at 4 p.m. in Toronto. The index has gained about 2.4 percent this year.

“Any time you mention China in a negative connotation it will be a negative for commodities,” said Michael O’Brien, a fund manager with TD Asset Management Ltd. in Toronto who manages about C$3 billion ($2.89 billion). “China’s the 800- pound gorilla for commodities. This is the IMF catching up with the market a little bit. I bet most people in the market think growth could be even below 7.8 percent this year.”

The S&P/TSX pared earlier losses of as much as 0.7 percent after U.S. Federal Reserve Bank of Boston President Eric Rosengren said the central bank should continue stimulus to speed economic growth and, if economic data is unfavorable, increase asset purchases.

China, the world’s biggest consumer of most commodities, will grow 7.75 percent this year and next, the IMF said today.

In April, the IMF forecast growth of 8 percent this year and 8.2 percent expansion in 2014. Raw-materials and energy companies account for about 39 percent of Canada’s benchmark equity gauge.

In a separate release, the Organization for Economic Cooperation and Development said China, which isn’t a member of the OECD, will grow 7.8 percent in 2013 and 8.4 percent in 2014.

China’s economy grew 7.8 percent in 2012.     The Bank of Canada kept its main interest rate unchanged at 1 percent for a record 22nd consecutive meeting today. It is Bank of Canada Governor Mark Carney’s final rate decision before passing the job to his successor Stephen Poloz, who starts on June 3.

Energy stocks lost 0.7 percent as a group, to a two-week low, as nine of 10 industries in the S&P/TSX retreated. Trading volume was 3.7 percent lower than the 30-day average.

Enbridge fell 2.3 percent to C$45.92, the biggest loss since April 5, and Encana declined 0.9 percent to C$20.05. Crude lost 2 percent to $93.13 a barrel in New York, the lowest settlement since May 1.

Copper Mountain Mining fell 1.8 percent to C$1.67 and Teck Resources Ltd., Canada’s largest diversified miner, dropped 1.1 percent to C$27.90 as copper for July delivery slid 0.5 percent.

Aurizon Mines Ltd. surged 9 percent to C$4 and Semafo Inc. jumped 7.8 percent to C$1.93 as gold rallied 0.9 percent to settle at $1,391.80 an ounce in New York.

Gold demand in India is headed for a quarterly record as imports reach 300 to 400 metric tons, the World Gold Council said in a report today. Silver Standard Resources Inc. soared 8.7 percent to C$7.87 as silver futures rose.

BMO slumped 1.9 percent to C$62.50, the biggest loss since June, after posting adjusted second-quarter earnings of C$1.46 a share, short of the C$1.48 average estimate of 15 analysts surveyed by Bloomberg. The bank blamed its results on restructuring charges and costs involved with its 2011 takeover of Wisconsin lender Marshall & Ilsley Corp.

BRP, based in Valcourt, Quebec, soared 16 percent to C$25 from its initial offering price of C$21.50. The stock was down 1 percent from its last close of C$25.25 after five days of trading on an if-and-when-issued basis. BRP raised C$262.3 million in gross proceeds from the IPO.

US

By Inyoung Hwang

May 29 (Bloomberg) — U.S. stocks fell, with the Dow Jones Industrial Average retreating from a record, amid concern that the Federal Reserve could begin to taper its debt-buying program as the economy continues to improve.

Nine out of 10 groups in the Standard & Poor’s 500 Index declined, as consumer-staple, utility and health-care stocks fell the most. Johnson & Johnson and Procter & Gamble Co. slumped more than 2.2 percent, pacing losses among the biggest U.S. companies. Lennar Corp. and PulteGroup Inc. fell at least 3.3 percent as investors sold shares of homebuilders.

The S&P 500 dropped 0.7 percent to 1,648.36 in New York. The Dow retreated 106.59 points, or 0.7 percent, to 15,302.80. More than 6.6 billion shares traded hands on U.S. exchanges today, or 5.6 percent more than than the three-month average.

“When yields do move higher, you’ll see some of those more defensive sectors take a hit,” Peter Jankovskis, who helps oversee $3.5 billion as co-chief investment officer of Lisle, Illinois-based Oakbrook Investments LLC, said by telephone.

“The big question is how sustainable is the growth that we’re having now.”

The S&P 500 retreated as much as 1.2 percent today after the yield on the country’s benchmark 10-year debt surged late yesterday to a 13-month high of 2.17 percent as a two-year sale drew the fewest bids since February 2011. Yields fell five basis points today to 2.12 percent as the government auctioned $35 billion of five-year notes at a lower-than-forecast yield.

The benchmark equity gauge dropped 1.1 percent last week as Fed Chairman Ben S. Bernanke said the central bank could reduce monetary stimulus if officials see signs of sustained improvement in growth. The index rose 0.6 percent yesterday and the Dow returned to a record after data showed consumer confidence climbed to the highest level since 2008 and house prices jumped the most in seven years, indicating growth in the world’s largest economy is picking up.

“We’ll have days when people are focusing on the positive economic story and days when people are focusing more on the issue that the Fed has in terms of slowing down their asset purchases and eventually moving interest rates,” Dan Curtin, the Boston-based global investment specialist at J.P. Morgan Private Bank, which oversees about $900 billion, said by telephone.

Equities pared losses today after Fed Bank of Boston President Eric Rosengren said “significant accommodation remains appropriate at this time.” Rosengren, who is a voter this year on monetary policy, also said it would make sense to consider a “modest” reduction in bond purchases after a few more months of improvement in the labor market and economy.

The Chicago Board Options Exchange Volatility Index, or VIX, rose 2.4 percent to 14.83. The equity volatility gauge, which moves in the opposite direction as the S&P 500 about 80 percent of the time, is down 18 percent for the year after jumping 12 percent last week.

Concern that slower Fed bond-buying will push Treasury yields higher prompted investors to sell shares of companies that have the highest dividend yields. Utility and telephone stocks fell 1.5 percent as groups. The two industries yield the most in the S&P 500.

While yield-seeking investors drove so-called defensive stocks to among the biggest gains in the S&P 500 in the first quarter, they’ve been lagging other industries since then, with utilities, phone companies and consumer-staple companies the worst performers.

Utilities, which yield 4.1 percent, fell for the fifth straight day today, the longest losing streak of the year.

Consolidated Edison Inc., the supplier of power to New York City, slumped 1.4 percent to $57.74.

Phone companies, which yield 4.4 percent, dropped for a third straight day. Verizon Communications Inc. lost 2.5 percent to $49.57 and AT&T Inc. retreated 0.8 percent to $35.91.

Consumer-staple stocks fell 1.9 percent. The group’s dividend yield is 2.9 percent. Procter & Gamble, the world’s largest maker of consumer products, slumped 2.4 percent to $78.90. Johnson & Johnson, the health-care products maker, slid 2.2 percent to $85.65.

McDonald’s Corp. retreated 2.2 percent to $99.05. The world’s largest restaurant chain’s global comparable sales were down 0.9 percent through April this year, according to Chief Executive Officer Don Thompson at an investor conference today.

David Palmer, an analyst at UBS AG in New York, lowered his full-year profit forecast for McDonald’s because of a “modestly worse” European consumer environment and greater foreign currency headwinds.

The S&P Supercomposite Homebuilding Index tumbled 3.8 percent as all 11 companies in the gauge retreated. Lennar sank 4.4 percent to $40.36, and PulteGroup fell 3.3 percent to $22.05.

SLM Corp. rallied 2.2 percent to $23.48. The student lender known as Sallie Mae is seeking to separate its education loan management and consumer banking businesses into two publicly traded entities.

Smithfield Foods Inc. jumped 28 percent to $33.35 after Shuanghui International Holdings Ltd. agreed to acquire the pork processor for $4.72 billion. Shuanghui will pay $34 a share for Smithfield, a 31 percent premium over yesterday’s closing share price.

Tyson Foods Inc. also rose, increasing 2 percent to $25.36, the highest level since 1998.

 

Have a great evening everyone!

 

Be magnificent!

 

“Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time.” – Thomas A. Edison

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 this afternoon, I will be sending the newsletter on her behalf.

The Sunday Market is now open to the public located at Bastion Square.  This well-known market features an eclectic mix of arts, crafts, imports, and entertainment. The Farmers’ Market will feature farmers selling their locally grown produce and fruits; homemade breads and pastries; preserves, chutneys, and relishes; free-range eggs; and authentic Mexican food.  Throughout the summer of 2013, the Sunday Market will also host an Art Walk on Langley Street. This brand-new event has been designed to profile local artists from all corners of Vancouver Island and the Gulf Islands. Be sure to check out the amazing talent of the artists here on Vancouver Island.

On this day in…

1929 – Warner Brothers debuted “On With The Show” in New York City. It was the first all-color-talking picture.

1934 – The Dionne quintuplets were born near Callender, Ontario, to Olivia and Elzire Dionne. The babies were the first quintuplets to survive infancy.

1953 – The Walt Disney film “Melody” premiered in the Paramount Theatre in Hollywood. The picture was the first 3-D cartoon.
Disney movies, music and books.

1961 – Amnesty International, a human rights organization, was founded.

1985 – The first issue of “Vanity Fair” magazine went on sale. The issue had a picture of U.S. President Ronald Reagan and First Lady Nancy smooching on the cover. 

“Peace is its own reward.” – Mahatma Gandhi

Photos of the day – May 28^th, 2013

A child plays with soap bubbles at an event to support autistic children and their families in a park in Kiev, Ukraine. The event, which was organized by several local charities, gave autistic children and their families the opportunity to spend a day in the park playing with soap bubbles as clowns and other performers entertained them. Gleb Garanich/Reuters

People visit the flower exhibition, ‘Exhibition of green cars’ in Kiev, Ukraine. Sergei Chuzavkov/AP

Market Closes for May 28^th, 2013

Market  Index	Close	Change
Dow  Jones	15409.39	+106.29    +0.69
S&P 500	1660.06	+10.46    +0.63
NASDAQ	3488.888	+29.744    +0.86%
TSX	12750.51	+54.14
		+0.43%

International Markets

Market  Index	Close	Change
NIKKEI	14311.98	+169.33
		+1.20%
HANG  SENG	22924.25	+238.20
		+1.05%
SENSEX	20160.82	+130.05
		+0.65%
FTSE 100	6762.01	+107.67
		+1.62%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.076	1.981
CND.   30 Year Bond	2.665	2.588
U.S.   10 Year Bond	2.1652	2.0081
U.S.   30 Year Bond	3.3217	3.1721

Currencies

BOC Close	Today	Previous
Canadian $	0.96120	0.96732
US   $	1.04036	1.03379
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33719	0.74784
US  $	1.28531	0.77802

Commodities

Gold	Close	Previous
London Gold   Fix	1380.75	1394.78
Oil	Close	Previous
WTI Crude Future	95.01	93.85
BRENT	104.15	102.01

Market Commentary:

Canada

By Eric Lam

May 28 (Bloomberg) — Canadian stocks rose for a third day as commodity prices advanced after U.S. reports showed consumer confidence surged and home values jumped.

MTY Food Group Inc. gained 10 percent after agreeing to buy fast-food assets from Extreme Brandz for C$45 million ($43.5 million). Bankers Petroleum Ltd. and Suncor Energy Inc. rallied at least 1.6 percent as crude snapped a four-day decline.

Thompson Creek Metals Co. jumped 2.7 percent after an analyst said HudBay Minerals Inc. could be interested in acquiring the molybdenum producer. Alacer Gold Corp. and Kirkland Lake Gold Inc. fell more than 3.6 percent as gold slid.

The Standard & Poor’s/TSX Composite Index rose 54.14 points, or 0.4 percent, to 12,750.51 at 4 p.m. in Toronto, the biggest gain in a week. The benchmark equity gauge has advanced 2.6 percent this year.

“Oil is up, and I think there’s a lot of pent-up demand for oil and gas stocks,” Irwin Michael, fund manager with ABC Funds, said from Toronto. The firm manages about C$800 million.

“The U.S. market is doing a little bit of catch-up today.

Between the Case-Shiller and consumer confidence numbers, they help. Economically things are improving.”

The S&P 500, the benchmark U.S. equity gauge, rallied 0.6 percent, as the S&P/Case-Shiller index of U.S. home prices rose in March by the most since April 2006 and another report showed confidence among U.S. consumers climbed in May to the highest in more than five years.

Bankers Petroleum added 3.3 percent to C$3.12 and Suncor, Canada’s largest oil producer, rose 1.6 percent to C$32.35 as crude rallied 0.9 percent to settle at $95.01 a barrel in New York, the highest since May 21.

Industrial stocks paced gains in the S&P/TSX, advancing 0.9 percent as a group as six of 10 industries rose. Trading volume was 28 percent higher than the 30-day average.

Canadian Pacific Railway Ltd. added 1.9 percent to C$139.40 and Canadian National Railway Co. rose 1 percent to C$105.23.

Hunter Harrison, chief executive officer with CP Rail, said in a TV interview with BNN yesterday the company will have North America’s best operating ratio, a measure of efficiency, in 18 months.

MTY Food Group, a fast-food restaurants franchiser, jumped 10 percent to C$25.10 after agreeing to buy Extreme Brandz’s Extreme Pita and Mucho Burrito restaurant chains. The purchase includes 40 storefronts in the U.S., a first for MTY. System- wide sales in Extreme Brandz’s most recent fiscal period were more than C$103 million, MTY Food said in a release.

Thompson Creek Metals advanced 2.7 percent to C$3.80 after Garrett Nelson, an analyst with BB&T Capital Markets, said there was “chatter” about HudBay Minerals considering an acquisition of the Littleton, Colorado-based molybdenum miner.

David Garofalo, chief executive officer with HudBay, told Bloomberg in an interview the company isn’t interested in acquiring Thompson Creek. HudBay rose 2.3 percent to C$8.53.

Bank of Nova Scotia, Canada’s third-largest lender, ended unchanged at C$59.61 after erasing losses of as much as 1.1 percent. The bank reported second-quarter adjusted earnings of C$1.24 a share, short of the C$1.26 average estimate of 15 analysts surveyed by Bloomberg. It also set aside C$343 million for bad loans during the quarter, 30 percent more than a year ago.

Alacer Gold dropped 4.2 percent to C$2.08 and Kirkland Lake Gold retreated 3.6 percent to C$4.58 as gold for August delivery fell 0.6 percent to settle at $1,379.70 an ounce in New York.

US

By Inyoung Hwang

May 28 (Bloomberg) — U.S. stocks rose, with the Dow Jones Industrial Average returning to a record, after data showed consumer confidence climbed to the highest level since 2008 and home values jumped the most in seven years.

Eight out of 10 S&P 500 groups advanced. State Street Corp. added 4.1 percent, pacing gains among financial shares, as Moody’s Investors Service lifted its outlook for the U.S. banking system. Merck & Co. added 1 percent after Jefferies & Co. increased the stock to a buy. Tiffany & Co. increased 4 percent after reporting first-quarter earnings that beat analysts’ estimates.

The Standard & Poor’s 500 Index rallied 0.6 percent to 1,660.06 in New York. The benchmark equity gauge pared gains after earlier rising as much as 1.5 percent. The Dow added 106.29 points, or 0.7 percent, to 15,409.39 today. About 6.32 billion shares traded hands on U.S. exchanges today, in line with the three-month average.

“The bottom line is there’s been a lot of chatter about how the market’s going to respond when the Fed tapers, but home prices are rising, jobless claims are coming down, and the stock market keeps going up,” James Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management, which oversees $325 billion, said by telephone. “People are feeling better. They’re noticing this recovery broadening out and firing on more cylinders on a regular basis. They know they’re under- allocated to risk assets.”

The S&P 500 rebounded from its first weekly decline since April 19. The gauge fell 1.1 percent last week as Federal Reserve Chairman Ben S. Bernanke said the central bank could reduce monetary stimulus if economic conditions continue to improve. Investors weighed the prospect of slower Fed bond- buying with data showing that existing home sales climbed and jobless claims topped estimates. U.S. markets were closed yesterday for a holiday.

The benchmark equity index has advanced 3.9 percent so far in May, for a seventh month of gains. That’s the longest winning streak since September 2009. The gauge has surged 145 percent since March 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases from the Fed.

The Dow has rallied for 20 straight Tuesdays through today, the longest streak since at least 1900, according to data by Schaeffer’s Investment Research. The winning streak is the second-longest for any day of the week, following the Dow’s gain for 24 straight Wednesdays in 1968, data by Schaeffer’s Senior Technical Analyst Ryan Detrick show.

“Investors still clearly believe that we have the Bernanke put well in place on the marketplace,” Michael Mullaney, chief investment officer at Fiduciary Trust Co. in Boston, said by phone today. His firm manages about $9.5 billion. “That’s what driving everything right now. From a fundamental standpoint, from a macroeconomic standpoint, you can’t justify these levels right now. The marketplace is ahead of itself from what we can tell.”

U.S. stocks extended gains earlier in the session after a Conference Board report showed consumer confidence climbed in May to the highest level in more than five years. The index rose to 76.2, the strongest since February 2008 and exceeding the highest estimate in a Bloomberg survey of economists.

Separate data showed that house prices rose in the 12 months through March by the most in seven years as the recovery in residential real estate gained momentum. The S&P/Case-Shiller index of property values increased 10.9 percent from March 2012, the biggest 12-month gain since April 2006, after advancing 9.4 percent in February.

The Chicago Board Options Exchange Volatility Index, or VIX, rose 3.5 percent to 14.48. The equity volatility gauge, which moves in the opposite direction as the S&P 500 about 80 percent of the time, is down 20 percent for the year after jumping 12 percent last week.

Financial stocks gained 1 percent as a group, after earlier rising as much as 1.9 percent. American Express Co. added 1.2 percent to $76.16 and JPMorgan Chase & Co. rallied 1.8 percent to $54.60.

The KBW Bank Index jumped 1.3 percent to the highest level since November 2008, as 22 out of 24 U.S. lenders in the measure advanced. State Street rose 4.1 percent to $67.15.

Moody’s changed its outlook for the U.S. banking system to stable after keeping it negative since 2008, saying that the country’s economy poses less of a threat. Gross domestic product will grow between 1.5 percent and 2.5 percent through next year, helping banks avoid losses, the New York-based credit-rating company said today in a statement.

Energy shares added 1 percent. Exxon Mobil Corp., the world’s largest oil company by market value, climbed 0.9 percent to $92.38.

Health-care stocks rose 0.9 percent. Merck added 1 percent to $47.62. The second-biggest U.S. drugmaker was raised to buy from hold by Jefferies analyst Jeffrey Holford, who also increased his price target to $54 a share from $48, saying “mounting” shareholder pressure may lead to a restructuring.

Tiffany added 4 percent to $79.22. The world’s second- largest luxury jewelry retailer reported first-quarter earnings excluding some items of 70 cents a share, surpassing the 53 cent-average estimate of analysts in a Bloomberg survey.

Tesla Motors Inc. rose 14 percent, the most in the Russell 1000 Index, to $110.33. The electric-car maker led by Elon Musk is preparing to announce an expansion of its charger network for its vehicles this week. Musk said May 20 the announcement of the expansion of its so-called supercharger network was being pushed back to this week after the Palo Alto, California-based company repaid a U.S. loan.

Valeant Pharmaceuticals International Inc. surged 8.7 percent to a record $91.80 after agreeing to buy Bausch & Lomb Holdings Inc. for $8.7 billion. Canada’s largest drugmaker’s acquisition of Bausch & Lomb, the eye-care company owned by Warburg Pincus LLC, positions Valeant to compete globally in the growing, specialized ophthalmology market.

Utility companies lost 1.2 percent as a group, after a surge of proposed new plants in the nation’s largest wholesale power market caused forward prices to drop. Exelon Corp. tumbled 7.5 percent to $32.04. The Chicago-based company, which is the largest U.S. operator of nuclear reactors, was cut to hold from buy at Deutsche Bank AG.

FirstEnergy Corp. erased 6.5 percent to $39.86 for its biggest decline in four years. The Akron, Ohio-based utility company was cut to neutral from outperform at Credit Suisse Group AG. The power companies, which stood to gain from coal plant retirements, are facing more competition from planned natural gas-fueled facilities and imports from neighboring markets.

 

Have a great evening everyone!

 

Be magnificent!

 

“To be trusted is a greater compliment than being loved.” – George MacDonald

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 this afternoon, I will be sending the newsletter on her behalf.

This weekend I attended my sisters Brazilian Batizado hosted at the Empress Hotel.  For the past 12 years my sister has been participating in a Brazilian Martial Arts called Capoeira. Capoeira is a Brazilian game that combines elements of martial arts, dance, and music. It was developed in Brazil mainly by African descendants with native Brazilian influences, probably beginning in the 16th century. It is known by quick and complex moves, using mainly power, speed, and leverage for leg sweeps. Saturday’s dance party included many traditional Brazilian dances, while the Sunday performance showcased the art of Capoeira and students receiving their next belts.  Here are a few pictures to give you an idea of the art of Capoeira!

On this day in…

1933 – Walt Disney’s “Three Little Pigs” was first released.
Disney movies, music and books

1933 – In the U.S., the Federal Securities Act was signed. The act required the registration of securities with the Federal Trade Commission.

1937 – In California, the Golden Gate Bridge was opened to pedestrian traffic. The bridge connected San Francisco and Marin County.

1969 – Construction of Walt Disney World began in Florida.

1985 – In Beijing, representatives of Britain and China exchanged instruments of ratification on the pact returning Hong Kong to the Chinese in 1997.

1986 – Mel Fisher recovered a jar that contained 2,300 emeralds from the Spanish ship Atocha. The ship sank in the 17th century. 

“The best way to find yourself is to lose yourself in the service of others.” – Mahatma Gandhi

Photos of the day – May 27^th, 2013

A woman prepares to ride a bike from the new public bike rental program launched today in New York City. Carlo Allegri/Reuters

The sun rises over the grounds of the Indianapolis Motor Speedway in Indianapolis, Sunday. AJ Mast/AP

Market Closes for May 27^th, 2013

Market  Index	Close	Change
Dow  Jones	15303.10	Closed
S&P 500	1649.60	Closed
NASDAQ	3459.144	Closed
TSX	12696.37	+29.15
		+0.23%

International Markets

Market  Index	Close	Change
NIKKEI	14142.65	-469.80
		-3.22%
HANG  SENG	22686.05	+67.38
		+0.30%
SENSEX	20030.77	+326.44
		+1.66%
FTSE 100	6654.34	-42.45
		-0.63%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.981	1.952
CND.   30 Year Bond	2.588	2.567
U.S.   10 Year Bond	2.0081	2.0081
U.S.   30 Year Bond	3.1721	3.1721

Currencies

BOC Close	Today	Previous
Canadian $	0.96732	0.96968
US   $	1.03379	1.03127
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33680	0.74805
US  $	1.29311	0.77330

Commodities

Gold	Close	Previous
London Gold   Fix	1394.78	1384.35
Oil	Close	Previous
WTI Crude Future	93.85	93.85
BRENT	102.01	102.16

Market Commentary:

Canada

By Eric Lam

May 27 (Bloomberg) — Canadian stocks rose for a second day as gold producers advanced and health-care companies soared to a 13-year high after Valeant Pharmaceuticals International Inc. surged to a record on a U.S. acquisition.

Valeant jumped 10 percent after adding Bausch & Lomb Holdings Inc. in an $8.7 billion deal, including debt. Wi-Lan Inc. gained 9.2 percent after signing a license agreement with Dell Inc., dismissing litigation. Kirkland Lake Gold Inc. and Premier Gold Mines Ltd. rose at least 2.7 percent as the price of gold advanced, extending gains after the best week in a month. Energold Drilling Corp. soared 12 percent after reporting first-quarter earnings that beat estimates.

The Standard & Poor’s/TSX Composite Index rose 29.15 points, or 0.2 percent, to 12,696.37 at 4 p.m. in Toronto. The benchmark equity gauge has gained 2.1 percent this year.

Markets in New York were closed for the Memorial Day holiday.

“It looks like we’ve hit the pause button, it’s pretty quiet today,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. He helps manage $4 billion with the firm. “What I’d watch for is gold equities and the gold price, they could get a bit of a lift if equity markets are taking a pause here.”

“Valeant is an acquisition-driven company and the shares will continue rising until they make a bad investment,” Nakamoto said.

Health-care stocks paced gains in the S&P/TSX, rising 7.4 percent as a group for the highest close since March 2000.

Trading volume for the broad index was 72 percent lower than the 30-day average.

Valeant, based in Montreal, surged 10 percent to C$95.85 for its highest close, according to data compiled by Bloomberg.

Valeant has soared 25 percent in the past two days, as reports of the deal first surfaced on May 24.

The company said in a statement today it will pay about $4.5 billion for Bausch & Lomb, which is owned by Warburg Pincus LLC. Valeant will also pay $4.2 billion to repay Bausch & Lomb debt.

Wi-Lan, a technology patent licensing company, jumped 9.2 percent to C$4.65 after agreeing to a licensing deal with Dell.

The U.S. computer retailer gains access to a subset of wireless patents for some products, the companies said in a release.

Wi-Lan, based in Ottawa, in September 2011 sued companies including Dell, Apple Inc. and Hewlett-Packard Co. for copyright infringement related to wireless technologies.

Kirkland Lake Gold jumped 6.5 percent to C$4.75 and Premier Gold Mines added 2.7 percent to C$1.89 as gold rose 0.5 percent to $1,394.70 an ounce in electronic trading in New York. Prices rose 2 percent last week, the biggest weekly gain since April 26.

Energold Drilling, which provides drilling services for mining companies, surged 12 percent to C$2.01, the biggest gain since June 2009. The Vancouver-based company reported first- quarter adjusted earnings of 15 Canadian cents a share, beating the average estimate of 10 cents according to data compiled by Bloomberg, on rising sales in its energy and manufacturing divisions.

US

By Will Hadfield and Lu Wang

May 24 (Bloomberg) — U.S. stocks recovered from early losses for a second day as investors weighed prospects of economic growth with concern the Federal Reserve will reduce stimulus efforts. Japanese shares rebounded from their largest drop since 2011, while commodities fell for a fourth day.

The Standard & Poor’s 500 Index slipped less than 0.1 percent to 1,649.6 at 4 p.m. in New York, paring a 0.8 percent loss, and the Dow Jones Industrial Average recovered from a 95- point loss to close up 8.6 points at 15,303.1. Japan’s Topix Index closed 0.5 percent higher after a 6.9 percent plunge yesterday. The euro was little changed at $1.2935 after gaining 0.5 percent earlier. Coffee, soybeans and cocoa lost more than 1.5 percent to lead the S&P GSCI Index of commodities to a three-week low.

Bookings for U.S. durable goods increased 3.3 percent last month, pointing to gains in business activity that will help manufacturing rebound in the second half of the year. In Germany, the Ifo institute’s business-climate index increased for the first time in three months, exceeding forecasts. Bank of Japan Governor Haruhiko Kuroda said he has done enough to stimulate the economy and has no target for the nation’s stocks or currency.

“The markets got spooked at the thought the Fed might taper off QE sooner rather than later,” Michelle Clayman, chief investment officer at New Amsterdam Partners in New York, which manages $2.6 billion, said in a phone interview. “Yet if you look at what the Fed said, that’d happen because the state of the world will be better.”

About 11 stocks retreated for every 10 that rose in the U.S. Volume of S&P 500 stocks was 22 percent below the 30-day average before markets close on May 27 for the Memorial Day holiday. The S&P 500 capped a weekly loss of 1.1 percent, its first in more than a month, and trimmed its 2013 gain to 15.7 percent.

Energy, telephone and utility companies led losses in eight of the 10 main industry groups in the S&P 500 today. Gap Inc. retreated 1.7 percent after the retailer forecast annual profit that fell short of analysts’ estimates.

Abercrombie & Fitch Co. slumped 8 percent after reducing its profit forecast for this financial year to a range of $3.15 to $3.25. It had predicted earnings per share of $3.35 to $3.45.

Sears Holdings Corp. plunged 14 percent, the most since November, as the department-store retailer posted a quarterly loss. “Our recent financial performance has not been acceptable,” Chief Executive Officer Edward Lampert said in a statement.

The Dow closed higher as Procter & Gamble Co. rose 4 percent to lead gains after the world’s largest consumer- products maker said it will replace Chief Executive Officer Bob McDonald with his predecessor, A.G. Lafley, as it struggles to rekindle growth.

Investors trying to explain the resilience of American equities during a global selloff may want to consider the pace that companies are repurchasing shares.

About 79 percent of buyback orders at Goldman Sachs Group Inc.’s corporate trading desk were active yesterday, the most this year, according to a note to clients obtained by Bloomberg News. Companies stepped up purchases as the S&P 500 fell as much as 3 percent from an intraday record reached May 22.

The buybacks may have limited losses in American equities after shares in Japan fell the most in two years and stock markets from London to Paris and Frankfurt saw declines of more than 2 percent. The S&P 500 closed yesterday down 0.3 percent after losing as much as 1.2 percent.

“The overall buy-the-dip mentality is very, very prevalent,” Jim Welsh, who helps oversee $6 billion at Forward Management LLC in San Francisco, said in a phone interview.

“When you have corporate buybacks, it’s kind of like a support underneath the market.”

The Stoxx 600 slipped for a second day following a 2.1 percent plunge yesterday, its worst in 10 months.

Raiffeisen Bank International AG dropped 2.1 percent after Herbert Stepic offered to resign as chief executive officer. The lender, the second-largest in eastern Europe, began an internal review of Stepic’s offshore accounts yesterday. Austria’s financial-markets regulator has requested information.

The yield on Italian 10-year debt rose 11 basis points to 4.14 percent, while Spanish rates jumped 13 basis points to 4.42 percent.

The yen strengthened against all 16 major peers after Kuroda’s remarks.

Japan’s currency has slumped 11 percent this year, for the worst performance among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The BOJ said on April 4 that it would double the country’s monetary base by the end of 2014 in an attempt to end deflation. The euro has risen 2.7 percent this year, and the dollar has strengthened 5.1 percent.

Australia’s dollar fell 1.1 percent to 96.42 U.S. cents, heading for a third weekly drop. New Zealand’s currency slid 0.7 percent to 80.81 U.S. cents after a government report showed the nation’s trade surplus for April was smaller than economists had estimated.

The MSCI Emerging Markets Index swung between gains and losses. Lenovo Group Ltd. climbed 3.8 percent in Hong Kong after saying that its cash reserves of more than $3 billion enable it to pursue acquisitions to expand into new business areas.

Hungary’s benchmark BUX Index increased 1. percent, while Brazil’s Ibovespa was little changed.

 

Have a great evening everyone!

 

Be magnificent!

 

“Coming together is a beginning; keeping together is progress; working together is success.” – Henry Ford

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 this afternoon, I will be sending the newsletter on her behalf.

Each year around this time you will see the Inner Harbor packed with sailboats coming in for the Swiftsure International Yacht Race. The Swiftsure International Yacht Race is the longest-running cross-border race on the West Coast, for sailboats of all types and sizes.  This year’s race will start at 8:50am on Saturday May 25^th, 2013 with 190 sailboats registered to race.  The best place for you to watch the race is at Clover Point and for all of you early birds, there will also be a pancake breakfast starting at 8, right before the race begins. It is truly an amazing event to watch, so be sure to check it out!  Below you will find the 3 different race courses for this year.

“Never bend your head. Always hold it high. Look the world straight in the eye.” – Helen Keller

Photos of the day – May 24^th, 2013

Buddhists carry candles while encircling a large Buddha statue during Vesak Day, an annual celebration of Buddha’s birth, enlightenment and death, at a temple in Nakhon Pathom province on the outskirts of Bangkok, Thailand. Chaiwat Subprasom/Reuters

An Indian child plays in water to cool off, at a water theme park, during a hot summer afternoon in Hyderabad, India. Mahesh Kumar A./AP

Market Closes for May 24^th, 2013

Market  Index	Close	Change
Dow  Jones	15303.10	+8.60    +0.06%
S&P 500	1649.58	-0.93    -0.06%
NASDAQ	3459.144	-0.274    -0.01%
TSX	12656.84	-1.25
		-0.01%

International Markets

Market  Index	Close	Change
NIKKEI	14612.45	+128.47
		+0.89%
HANG  SENG	22618.67	-51.01
		-0.23%
SENSEX	19704.33	+30.00
		+0.15%
FTSE 100	6654.34	-42.45
		-0.63%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.952	1.958
CND.   30 Year Bond	2.567	2.572
U.S.   10 Year Bond	2.0081	2.0157
U.S.   30 Year Bond	3.1721	3.1889

Currencies

BOC Close	Today	Previous
Canadian $	0.96968	0.97050
US   $	1.03127	1.03040
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33392	0.74967
US  $	1.29339	0.77316

Commodities

Gold	Close	Previous
London Gold   Fix	1384.35	1391.15
Oil	Close	Previous
WTI Crude Future	93.85	93.96
BRENT	102.16	101.94

Market Commentary:

Canada

By Eric Lam

May 24 (Bloomberg) — Canadian stocks rose, erasing earlier losses of as much as 0.3 percent to clinch a fifth week of gains, as a surge in Valeant Pharmaceuticals International Inc. offset a slump in oil and gold producers.

Valeant jumped 13 percent to an 11-year high after a person familiar with negotiations said Canada’s largest drugmaker might pay $9 billion to buy Bausch & Lomb. Manitoba Telecom Services Inc. surged 5.7 percent after agreeing to sell its Allstream unit to a firm co-founded by Egyptian billionaire Naguib Sawiris. Encana Corp. fell 0.7 percent as oil capped its biggest weekly decline in more than a month. Banro Corp. and OceanaGold Corp. slid more than 3.9 percent as gold retreated.

The Standard & Poor’s/TSX Composite Index rose 9.13 points, or 0.1 percent, to 12,667.22 at 4 p.m. in Toronto. The benchmark equity gauge’s 0.4 percent gain in the past five days gave it the longest streak of weekly advances since February 2012.

“The S&P/TSX has been pretty quiet while other markets have been swinging a lot,” said Stephen Gauthier, chief investment officer with Fin-XO Securities Inc. in Montreal. The firm manages C$500 million ($484 million). “Commodities are falling. We’re seeing oil is down, as is gold. The U.S. economy has been doing pretty well, so it’s providing a bit of a floor to markets.”

Canadian equities traded as low as 0.3 percent as energy and raw-material shares retreated amid a slump in oil and gold prices. Seven of 10 industries in the S&P/TSX declined, as five stocks fell for every three that rose.

Valeant surged 13 percent to C$87, its highest close since January 2002, pacing an 8.7 percent increase among health-care stocks. Warburg Pincus LLC, which bought Bausch & Lomb in a 2007 leveraged buyout, as recently as March was considering an initial public offering, but is now near a deal to sell to Valeant, said a person who asked not to be identified because the negotiations are private.

Manitoba Telecom gained 5.7 percent to C$33.93 after selling its Allstream fiber network business to Accelero Capital Holdings for C$520 million. The company will use the cash to invest in new wireless spectrum and improve the speed of its existing networks, Manitoba Telecom said in a statement.

National Bank of Canada, the country’s sixth-largest lender, advanced 1.9 percent to C$77.02 after reporting record second-quarter adjusted profit and raising its dividend 4.8 percent.

Niko Resources Ltd. jumped 23 percent to C$7.35, for its biggest gain since 1996. Niko, along with partners Reliance Industries Ltd. and BP Plc, announced today they have discovered gas and condensate in a well off the east coast of India. Niko holds a 10 percent stake in the block where the discovery was made.

Banro slipped 3.9 percent to C$1 and OceanaGold sank 4.9 percent to C$1.76 as gold for June delivery retreated for the third time in four days.

Encana fell 0.7 percent to C$20.28 and Suncor Energy Inc. declined 1.1 percent to C$31.95 as the price of crude for July delivery retreated 10 cents to $94.15 a barrel. Oil slid 1.9 percent this week, the most since the seven days ended April 19.

US

By Will Hadfield and Lu Wang

May 24 (Bloomberg) — U.S. stocks recovered from early losses for a second day as investors weighed prospects of economic growth with concern the Federal Reserve will reduce stimulus efforts. Japanese shares rebounded from their largest drop since 2011, while commodities fell for a fourth day.

The Standard & Poor’s 500 Index slipped less than 0.1 percent to 1,649.6 at 4 p.m. in New York, paring a 0.8 percent loss, and the Dow Jones Industrial Average recovered from a 95- point loss to close up 8.6 points at 15,303.1. Japan’s Topix Index closed 0.5 percent higher after a 6.9 percent plunge yesterday. The euro was little changed at $1.2935 after gaining 0.5 percent earlier. Coffee, soybeans and cocoa lost more than1.5 percent to lead the S&P GSCI Index of commodities to a three-week low.

Bookings for U.S. durable goods increased 3.3 percent last month, pointing to gains in business activity that will help manufacturing rebound in the second half of the year. In Germany, the Ifo institute’s business-climate index increased for the first time in three months, exceeding forecasts. Bank of Japan Governor Haruhiko Kuroda said he has done enough to stimulate the economy and has no target for the nation’s stocks or currency.

“The markets got spooked at the thought the Fed might taper off QE sooner rather than later,” Michelle Clayman, chief investment officer at New Amsterdam Partners in New York, which manages $2.6 billion, said in a phone interview. “Yet if you look at what the Fed said, that’d happen because the state of the world will be better.”

About 11 stocks retreated for every 10 that rose in the U.S. Volume of S&P 500 stocks was 23 percent below the 30-day average before markets close on May 27 for the Memorial Day holiday. The S&P 500 capped a weekly loss of 1.1 percent, its first in more than a month, and trimmed its 2013 gain to 15.7 percent.

Energy, telephone and utility companies led losses in eight of the 10 main industry groups in the S&P 500 today, while consumer-staples and financial shares advanced. Gap Inc. retreated 1.7 percent after the retailer forecast annual profit that fell short of analysts’ estimates.

Abercrombie & Fitch Co. slumped 8 percent after reducing its profit forecast for this financial year to a range of $3.15 to $3.25. It had predicted earnings per share of $3.35 to $3.45.

Sears Holdings Corp. plunged 14 percent, the most since November, as the department-store retailer posted a quarterly loss. “Our recent financial performance has not been acceptable,” Chief Executive Officer Edward Lampert said in a statement.

The Dow closed higher as Procter & Gamble Co. rose 4 percent to lead gains after the world’s largest consumer- products maker said it will replace Chief Executive Officer Bob McDonald with his predecessor, A.G. Lafley, as it struggles to rekindle growth.

Investors trying to explain the resilience of American equities during a global selloff may want to consider the pace that companies are repurchasing shares.

About 79 percent of buyback orders at Goldman Sachs Group Inc.’s corporate trading desk were active yesterday, the most this year, according to a note to clients obtained by Bloomberg News. Companies stepped up purchases as the S&P 500 fell as much as 3 percent from an intraday record reached May 22.

The buybacks may have limited losses in American equities after shares in Japan fell the most in two years and stock markets from London to Paris and Frankfurt saw declines of more than 2 percent. The S&P 500 closed yesterday down 0.3 percent after losing as much as 1.2 percent.

“The overall buy-the-dip mentality is very, very prevalent,” Jim Welsh, who helps oversee $6 billion at Forward Management LLC in San Francisco, said in a phone interview.

“When you have corporate buybacks, it’s kind of like a support underneath the market.”

The Stoxx 600 slipped for a second day following a 2.1 percent plunge yesterday, its worst in 10 months.

Raiffeisen Bank International AG dropped 2.1 percent after Herbert Stepic offered to resign as chief executive officer. The lender, the second-largest in eastern Europe, began an internal review of Stepic’s offshore accounts yesterday. Austria’s financial-markets regulator has requested information.

The yield on Italian 10-year debt rose 11 basis points to 4.14 percent, while Spanish rates jumped 13 basis points to 4.42 percent.

The yen strengthened against all 16 major peers after Kuroda’s remarks.

Japan’s currency has slumped 11 percent this year, for the worst performance among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The BOJ said on April 4 that it would double the country’s monetary base by the end of 2014 in an attempt to end deflation. The euro has risen 2.7 percent this year, and the dollar has strengthened 5.1 percent.

Australia’s dollar fell 1.1 percent to 96.42 U.S. cents, heading for a third weekly drop. New Zealand’s currency slid 0.7 percent to 80.81 U.S. cents after a government report showed the nation’s trade surplus for April was smaller than economists had estimated.

The MSCI Emerging Markets Index swung between gains and losses. Lenovo Group Ltd. climbed 3.8 percent in Hong Kong after saying that its cash reserves of more than $3 billion enable it to pursue acquisitions to expand into new business areas.

Hungary’s benchmark BUX Index increased 1. percent, while Brazil’s Ibovespa was little changed.

Coffee tumbled to the lowest in more than three years, with Arabica futures for July losing 2.2 percent to $1.2725 a pound, as inventories climbed in Europe and the U.S., the world’s leading consumers, fueling concern that supplies will overwhelm demand. Soybeans fell the most in three weeks, losing 1.6 percent, as the highest prices this year prompted U.S. farmers to boost sales and processors offered smaller premiums for deliveries. Wheat futures also slid while corn rose.

Oil for July delivery decreased 10 cents to $94.15 a barrel on the New York Mercantile Exchange, the lowest settlement since May 2. Gold futures for June delivery fell 0.4 percent to settle at $1,386.60 an ounce.

 

Have a great weekend everyone!

 

Be magnificent!

 

“Don’t believe what your eyes are telling you. All they show is limitation. Look with your understanding, find out what you already know, and you’ll see the way to fly.” – Richard Bach

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 this afternoon, I will be sending the newsletter on her behalf.

I was recently reading the Globe and Mail and came across this article “Images from A Map of the World: The World According to Illustrators & Storytellers”.  The maps show how many ways there are to understand the world and each person’s place in it.  I wanted to share one of my favorite maps with you and have also include the link should you wish to view the others: http://www.theglobeandmail.com/life/home-and-garden/decor/6-maps-to-change-how-you-look-at-the-world/article11948270/

Joâo Lauro Fonte’s typographic map of London, created for Converse, is a brilliant example of the creative ways to view geography. The red streak of the Thames adds a striking pop of colour to what might otherwise be slightly monotonous.

On this day in…

1879 – The first U.S. veterinary school was established by Iowa State University.

1895 – The New York Public Library was created with an agreement that combined the city’s existing Astor and Lenox libraries.

1900 – Civil War hero Sgt. William H. Carney became the first African American to receive the Medal of Honor, 37 years after the Battle of Fort Wagner.

1922 – The play “Abie’s Irish Rose” opened in New York City.

1922 – “Daylight Saving Time” was debated in the first debate ever to be heard on radio in Washington, DC.

1938 – “LIFE” magazine’s cover pictured Errol Flynn as a glamour boy.

“Our lives begin to end the day we become silent about things that matter.” – Martin Luther King, Jr.

Photos of the day – May 23^rd, 2013

A house built on a rock on the river Drina is seen near the western Serbian town of Bajina Basta. The house was built in 1968 by a group of young men who decided that the rock on the river was an ideal place for a tiny shelter, according to the house’s co-owner. Marko Djurica/Reuters

Solar Impulse, piloted by André Borschberg, takes flight during the second leg of the 2013 Across America mission, at dawn from Sky Harbor International Airport in Phoenix. The plane’s creators, Bertrand Piccard and Borschberg, said the trip is the first attempt by a solar airplane capable of flying day and night without fuel to fly across America. Matt York/AP

Market Closes for May 23^rd, 2013

Market  Index	Close	Change
Dow  Jones	15294.50	-12.67    -0.08%
S&P 500	1650.51	-4.84    -0.29%
NASDAQ	3459.417	-3.882    -0.11%
TSX	12658.09	-94.41
		-0.74%

International Markets

Market  Index	Close	Change
NIKKEI	14483.98	-1143.28
		-7.32%
HANG  SENG	22669.68	-591.40
		-2.54%
SENSEX	19674.33	-387.91
		-1.93%
FTSE 100	6696.79	-143.48
		-2.10%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.958	1.962
CND.   30 Year Bond	2.572	2.570
U.S.   10 Year Bond	2.0157	2.0298
U.S.   30 Year Bond	3.1889	3.2144

Currencies

BOC Close	Today	Previous
Canadian $	0.97050	0.96449
US   $	1.03040	1.03682
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33239	0.75053
US  $	1.29314	0.77331

Commodities

Gold	Close	Previous
London Gold   Fix	1391.15	1365.16
Oil	Close	Previous
WTI Crude Future	93.96	94.32
BRENT	101.94	101.81

Market Commentary

Canada

By Eric Lam

May 23 (Bloomberg) — Canadian stocks fell for the first time in five days amid a global equity selloff as China’s manufacturing industry unexpectedly contracted.

Teck Resources Ltd., Canada’s largest diversified miner, and First Quantum Minerals Ltd. fell at least 2.8 percent as base metal prices declined. Suncor Energy Inc. lost 0.6 percent as crude retreated for a third day. Toronto-Dominion Bank, Canada’s second-largest bank, dropped 0.5 percent after reporting adjusted earnings that missed estimates. Kirkland Lake Gold Inc. and Kinross Gold Corp. rallied more than 1.9 percent as gold snapped two days of losses.

The Standard & Poor’s/TSX Composite Index fell 94.41 points, or 0.7 percent, to 12,658.09 at 4 p.m. in Toronto. The benchmark equity gauge has gained 1.8 percent this year. Trading was 15 percent below the 30-day average.

“Manufacturing data tells you a lot about where markets are going, and they’ve been weak for some time,” said John Stephenson, a fund manager with First Asset Investment Management Inc. in Toronto. Stephenson helps manage C$2.7 billion ($2.6 billion) at the firm. “Seeing the slowdown in the China data confirms that. It’s a negative for stocks.”

China manufacturing is contracting in May for the first time in seven months. The preliminary reading of 49.6 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with a final 50.4 for April and the 50.4 median estimate in a Bloomberg News survey. A reading above 50 indicates expansion.

The MSCI All-Country World Index slumped 1.3 percent for the biggest decline since April. Japan’s Topix Index plunged 6.9 percent, the most since March 2011. The S&P 500 lost 0.3 percent.

“It’s a combination of the China data and the reaction that’s happening in the rest of the world,” Anish Chopra, a fund manager with TD Asset Management Ltd., said from Toronto.

He helps manage C$204 billion with the firm. “Japan has fallen quite a bit and it’s rippled through the rest of the markets worldwide. The Japanese equity market has been up substantially year-to-date, so a pullback seems reasonable.”

All 10 groups in the S&P/TSX fell, with industrial and health-care stocks dropping at least 1.2 percent.

Teck Resources dropped 4.3 percent to C$28.20 and First Quantum slid 2.8 percent to C$18.69 as raw-materials producers declined 0.9 percent as a group. Copper, used in building construction, fell 2.3 percent to settle at $3.304 a pound in New York, the biggest decline since May 1. Aluminum, nickel, lead, tin and zinc prices were also lower in London.

Suncor, Canada’s largest oil producer by market value, lost 0.6 percent to C$32.32. Athabasca Oil Corp. dropped 2.7 percent to C$6.42 and Penn West Petroleum Ltd. fell 2.1 percent to C$10.14. The price of crude retreated 3 cents to settle at $94.25 a barrel in New York, paring earlier losses of as much as 2.2 percent.

TD Bank dropped 0.5 percent to C$83.65 after reporting adjusted second-quarter earnings of C$1.90 a share, missing the C$1.91 average estimate of 13 analysts compiled by Bloomberg.

Kirkland Lake Gold rallied 5.7 percent to C$4.46 and Kinross Gold Corp. climbed 1.9 percent to C$6.02. The precious metal’s price advanced 1.8 percent to settle at $1,391.80 an ounce in New York, the biggest gain since April 25.

US

By Stephen Kirkland and Lu Wang

May 23 (Bloomberg) — The Standard & Poor’s 500 Index recovered most of a 1.2 percent morning slide as Hewlett-Packard Co. led gains in technology shares. Global equities slid, with Japanese shares plunging the most since the aftermath of the Fukushima disaster. Copper sank and the yen rallied.

The S&P 500 fell less than 0.3 percent at 4 p.m. in New York after decreasing 0.8 percent yesterday. The MSCI All- Country World Index declined 1.3 percent and Japan’s Topix Index slumped 6.9 percent, the most since March 2011. The yen rose against its 16 major peers, gaining 1.3 percent to 101.84 per dollar. Ten-year Treasury yields lost 2.5 basis points to 2.01 percent after topping 2 percent yesterday for the first time since March. Copper sank more than 2 percent in London, leading commodities lower.

Hewlett-Packard jumped 17 percent, the most since 2001, as cost cuts helped its earnings and forecast top estimates. The drop in global stocks came as factory output in China shrank for the first time in seven months and overseas investors reacted to growing concern the U.S. Federal Reserve will scale back its monetary stimulus program. Fed Bank of St. Louis President James Bullard said today he wants to continue the current pace of bond purchases as long as falling inflation is a concern.

The swing in stocks “really shows the nervousness in the marketplace that at any given time a piece of exogenous news can quickly change the psychology,” Rick Bensignor, head of trading strategy at Wells Fargo Securities LLC in New York, said in a phone interview. “But you’re going to have your confirmed bulls that will use any pullbacks at all to buy. There is enough of the Street that thinks that the S&P 500 has a few more hundred points to go.”

While Fed Chairman Ben S. Bernanke said in prepared remarks to Congress yesterday that a premature withdrawal of stimulus would put the economic recovery at risk, he later told lawmakers that the central bank will reduce the flow of purchases as the outlook for the labor market improves.

The S&P 500 lost about 1.1 percent in two days, its biggest retreat in more than a month. Utilities in the index tumbled 2.4 percent in the past two sessions as yesterday’s jump in bond yields reduced demand for their dividends. Utilities pay 3.8 percent of their price in dividends for the second highest yield among 10 groups, according to data compiled by Bloomberg.

NYSE Euronext let stand trades that sent American Electric Power Co. and NextEra Energy Inc. down at least 54 percent, while labeling them as “aberrant” and excluding them from records showing the stocks’ lows of the day.

American Electric Power fell as much as 54 percent to $22.28 a share, according to data compiled by Bloomberg. The shares rebounded, trimming the loss to 0.6 percent and closing at $48.28. NextEra Energy, another electricity supplier, sank as much as 62 percent to $30.37 before bouncing back to pare the day’s drop to 1.2 percent and closing at $78.22.

Yesterday’s 0.8 percent drop in the S&P 500 may signal a “garden variety correction” that will result in a 6 percent to 9 percent retreat in the index, according to Oppenheimer & Co. technical analyst Carter Worth. The drop met the requirements of being a “key reversal day,” as well as an “outside day” because both the session’s high and low points exceeded those of the previous day. Outside days and key reversal days signal changes in direction more often than not, he wrote.

U.S. stocks pared losses today as government data showed sales of new homes climbed 2.3 percent to a three-month high of 454,000 homes at an annualized pace from a 444,000 rate in March that was faster than first estimated. The median estimate of 76 economists surveyed by Bloomberg called for a gain to 425,000.

The median selling price rose to a record on sales of more expensive properties. A gauge of 11 homebuilders in S&P indexes jumped 1 percent.

Jobless claims decreased more than forecast, falling by 23,000 to 340,000 in the week ended May 18, Labor Department figures showed. The median forecast of 50 economists surveyed by Bloomberg called for a drop to 345,000.

The Stoxx Europe 600 Index retreated from the highest level in almost five years, sliding 2.1 percent for the biggest drop since July. Trading volume was 24 percent more than the 30-day average as all 19 industry groups retreated. HSBC Holdings Plc, Europe’s biggest bank, sank 3.4 percent. Daimler AG, the world’s third-largest maker of luxury vehicles, lost 3.3 percent.

The drop in Japanese shares erased $314 billion in market value amid record volume, shaking bulls who pushed the Topix Index to five-year highs and highlighting their vulnerability to shocks at home and abroad.

This year’s best performing major equity gauge plunged after government bond yields rose to the highest levels in a year and Chinese manufacturing missed estimates. The slide triggered a halt in Osaka-traded index futures and cut the measure’s 2013 advance to 38 percent from 48 percent. Gains for the Topix remain more than twice as big as the S&P 500’s this year.

JPMorgan Asset Management and Pinebridge Investments LLC said the selloff was overdue after $1.2 trillion was added to equities on speculation Prime Minister Shinzo Abe and the Bank of Japan would end two decades of deflation. The Topix traded at as much as 24.8 times earnings this week, higher than 86 percent of days since 2004, data compiled by Bloomberg show. Mark Matthews, who helps oversee $282 billion as head of Asia research at Bank Julius Baer & Co., said the rally will resume.

For the first time since April 2005 every company in the Nikkei 225 Stock Average fell, dragging the gauge down 7.3 percent. Nikkei 225 futures traded in Osaka were up 0.1 percent in the May 24 session.

The MSCI Emerging Markets Index sank the most in 10 months, losing 2 percent. Russia’s Micex Index slid 3.6 percent, the biggest drop in a year, while Brazil’s Ibovespa closed little changed.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong dropped 2.8 percent, the most in six weeks.

The preliminary reading of 49.6 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with a final 50.4 for April. The number was also below the 50.4 median estimate in a Bloomberg News survey of 13 analysts. A reading above 50 indicates expansion.

West Texas Intermediate oil closed little changed in New York, slipping 3 cents to $94.25 a barrel, while copper dropped 2.3 percent in London. China is the biggest buyer of industrial metals and energy. The S&P GSCI gauge of commodities declined 0.2 percent, the third consecutive drop. Gold futures climbed 1.8 percent to $1,391.80 an ounce.

The yen climbed as much as 2.3 percent against the dollar, the most since Feb. 25. It reached a 4 1/2 year low of 103.74 per dollar yesterday. Japan’s currency gained 0.7 percent to 131.73 per euro.

The Swiss franc pared gains after climbing as much as 1.3 percent against the euro, the most since Sept. 5, 2011, the day before the Swiss National Bank imposed its currency floor.

Spain’s 10-year bond yield climbed 11 basis points to 4.29 percent. Borrowing costs increased as the government sold 4.08 billion euros ($5.26 billion) of debt maturing in 2016, 2018 and 2026.

 

Have a great evening 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

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 this afternoon, I will be sending the newsletter on her behalf.

On May 31^st, 2013 David Foster will be honored on the Hollywood Walk of Fame.  His star will be the 2,499^th on the Hollywood Walk of Fame.  A famous record producer, composer, singer, songwriter, and arranger, David Foster also is creator of the David Foster Foundation which is a non-profit charitable organization dedicated to providing financial support for non-medical expenses to Canadian families with children in need of life-saving organ transplants.  This well deserved individual will be revealing his star in front of the Capitol Record Building.  In 1971, Capitol was the record label that launched his career when it signed his band Skylark, which had a 1972 Top-10 hit in Wildflower.  The ceremony will be live-streamed on walkoffame.com at 11:30 am on May 31^st, 2013.  Tune in!

On this day in…

1849 – Abraham Lincoln received a patent for the floating dry dock.

1859 – The creator of “Sherlock Holmes,” Sir Arthur Conan Doyle was born.

1882 – The U.S. formally recognized Korea.

1891 – The first public motion picture was given in Thomas Edison’s lab.

1892 – Dr. Sheffield, a British dentist, invented the toothpaste tube.

1900 – The Associated Press was incorporated as a non-profit news cooperative in New York.

1906 – The Wright brothers received a patent their flying machine.

1967 – “Mister Rogers’ Neighborhood” premiered on PBS. 

“Since love grows within you, so beauty grows. For love is the beauty of the soul.” – Saint Augustine

Photos of the day – May 22^nd, 2013

Pots of flowers hang from a wall on the Interflora display at the Chelsea Flower Show in London. Luke MacGregor/Reuters

Divers are silhouetted as they enter a giant aquarium at the Marine Life Park at Resorts World, one of the city-state’s newest tourist attractions opened late 2012, in Singapore. Wong Maye-E/AP

The pack pedals through mountain landscape during the 16th stage of the Giro d’Italia, Tour of Italy cycling race, from Valloire, France, to Ivrea, Italy. Benat Intxausti of Spain won the 16th stage of the Giro d’Italia, and favorite Vincenzo Nibali retained the overall lead as the race entered the final week.Fabio Ferrari/AP

Market Closes for May 22^nd, 2013

Market  Index	Close	Change
Dow  Jones	15307.17	-80.41    -0.52%
S&P 500	1653.71	-15.45    -0.93%
NASDAQ	3463.299	-38.824    -1.11%
TSX	12735.58	-6.85
		-0.05%

International Markets

Market  Index	Close	Change
NIKKEI	15627.26	+246.24
		+1.60%
HANG  SENG	23261.08	-105.29
		-0.45%
SENSEX	20062.24	-49.37
		-0.25%
FTSE 100	6840.27	+36.40
		+0.53%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.962	1.909
CND.   30 Year Bond	2.570	2.527
U.S.   10 Year Bond	2.0298	1.9263
U.S.   30 Year Bond	3.2144	3.1309

Currencies

BOC Close	Today	Previous
Canadian $	0.96449	0.97392
US   $	1.03682	1.02678
Euro Rate  1 Euro=		Inverse
Canadian   $	1.33317	0.75009
US  $	1.28582	0.77771

Commodities

Gold	Close	Previous
London Gold   Fix	1365.16	1376.22
Oil	Close	Previous
WTI Crude Future	94.32	96.09
BRENT	101.81	103.24

Market Commentary:

Canada

By Eric Lam

May 22 (Bloomberg) — Canadian stocks rose for a fourth day, with a rally in metals miners offsetting losses among banks and oil producers, as investors weighed the pacing of U.S. central-bank stimulus measures.

First Quantum Minerals Ltd. and Teck Resources Ltd. gained at least 1.7 percent as the price of copper advanced to a five- week high amid supply concerns. Copper Mountain Mining Corp. jumped 9.3 percent after repairing a transformer at its mine sooner than it estimated. Barrick Gold Corp. and Goldcorp Inc. increased more than 1.7 percent even as the metal’s price declined. Royal Bank of Canada, the nation’s largest lender, dropped 0.6 percent and Suncor Energy Inc. lost 1 percent.

The Standard & Poor’s/TSX Composite Index rose 10.07 points, or 0.1 percent, to 12,752.50 at 4 p.m. in Toronto, after gaining as much as 1.2 percent earlier in the session. The benchmark equity gauge has added 2.2 percent over four trading days. Trading volume was 17 percent higher than the 30-day average.

“We started off fairly positively this morning with the Bernanke comments,” said Youssef Zohny, portfolio manager with Stenner Investment Partners of Richardson GMP Ltd. in Vancouver.

Richardson GMP manages about C$15 billion ($14.4 billion).

“With the FOMC minutes, we saw them talk of more stabilization, of a more positive outlook to the economy, and markets are taking that as less stimulus. In the medium to long term it’s positive, but any comments on less stimulus are a short-term negative.”

A number of Federal Reserve officials said they were willing to taper bond buying as early as the next policy-maker meeting in June if economic reports show “evidence of sufficiently strong and sustained growth,” according to minutes from the April 30-May 1 gathering released today.

Fed Chairman Ben S. Bernanke said earlier in testimony prepared for a Congressional hearing today that a premature withdrawal of stimulus would put the U.S. economic recovery at risk. The banker later told lawmakers that as the outlook for the labor market “improves in a real and sustainable way, the committee will reduce the flow of purchases.”

Gold rallied more than 2.5 percent following the prepared statements, but turned lower as Bernanke answered questions from lawmakers about the possible timing of reducing the rate of bond purchases. The metal settled down 0.7 percent to $1,367.40 in New York and maintained losses after the Fed minutes were released at 2 p.m.

“The news today is very clearly that, you taper off bond buying there’s less liquidity and it’s not good for gold,” said Jeffrey Burchell, a fund manager with Aston Hill Financial Inc. in Toronto. His firm manages about C$7 billion. The rise in miner stocks is “a bounce off the bottom for gold producers, they’ve been so beaten up,” he said.

The S&P/TSX Materials Index rallied 1.7 percent, extending yesterday’s 1.6 percent advance. The gauge has fallen 23 percent this year as the price of gold retreated into a bear market.

Barrick Gold added 1.7 percent to C$20.21 and Goldcorp rose 3.1 percent to C$28.19.

Kirkland Lake Gold Inc. jumped 13 percent to C$4.22 for the biggest gain in the benchmark equity index. The company said yesterday it met its 2012 target for replacing proven and probable reserves mined by the company at its complex in Kirkland Lake, Ontario. Barrick is down 42 percent this year and Goldcorp has fallen 23 percent.

First Quantum Minerals gained 1.7 percent to C$19.22 and Teck Resources rallied 3.4 percent to C$29.46. Copper futures rose 0.7 percent at 4:40 p.m. in New York. The industrial metal earlier touched a five-week high of $3.418 a pound on mounting concern that a deadly accident at the world’s second-biggest mine may crimp supplies as a recovering housing market boosts demand in the U.S.

Sales of existing U.S. homes in April were the highest since November 2009, a report from the National Association of Realtors showed today.

Copper Mountain Mining soared 9.3 percent to C$1.77 after the company said it replaced a damaged transformer at its mine in southern British Columbia and had resumed operations earlier than previously estimated. The stock fell 9.5 percent May 17; the company disclosed the transformer problem May 16 after the end of regular trading.

Royal Bank dropped 0.6 percent to C$63.46 and the Bank of Nova Scotia declined 0.4 percent to C$59.49 as financial stocks retreated 0.3 percent, the first decline in four days.

Suncor lost 1 percent to C$32.50 and Pembina Pipeline Corp. fell 2.7 percent to C$34.66. Crude for July delivery fell the most in three weeks as a government report showed U.S. gasoline supplies unexpectedly gained and crude stockpiles declined less than expected. The dollar strengthened on Bernanke’s comments, accelerating oil’s drop.

Catamaran Corp., a drug-benefits manager, slumped 2.5 percent to C$50.42, its lowest close since January. UBS analyst Steven Valiquette said the company is at risk of losing its contract with Cigna Corp.’s HealthSpring PBM when the deal expires at the end of this year.

US

By Inyoung Hwang and Lu Wang

May 22 (Bloomberg) — U.S. stocks fell, with benchmark indexes retreating from record highs, as concern grew that the Federal Reserve will scale back its stimulus efforts if the labor market continues to improve.

All 10 industries in the Standard & Poor’s 500 Index declined. Utility, commodity and phone stocks sank the most, losing at least 1.2 percent. Target Corp. slid 4 percent after profit fell 29 percent as higher taxes and cooler temperatures hampered sales. Saks Inc. soared 15 percent as the retailer was said to have hired Goldman Sachs Group Inc. to explore options including a sale. Hewlett-Packard Co. jumped 13 percent after the market closed as it forecast earnings that topped estimates.

The S&P 500 fell 0.8 percent to 1,655.35 at 4 p.m. in New York, after rallying as much as 1.1 percent earlier. The Dow Jones Industrial Average lost 80.41 points, or 0.5 percent, to 15,307.17. About 8.3 billion shares changed hands today, 32 percent above the three-month average.

“The key takeaway is whether the Fed does more or does less all depends on the data,” John Canally, investment strategist at Boston-based LPL Financial Corp., which has $373 billion in advisory and brokerage assets, said in a phone interview. “Stocks have been up so much year to date. Largely, people are looking for an excuse to sell.”

U.S. stocks rallied early in the day after Fed Chairman Ben S. Bernanke said in prepared remarks to Congress that a premature withdrawal of quantitative easing would put the economic recovery at risk. Equities pared gains after he said the central bank could “step down” the pace of asset purchases in the next few meetings if the labor market continues to improve and “we have confidence that that is going to be sustained.”

The chairman has said he would continue stimulus efforts until the jobless rate falls to 6.5 percent or inflation rises above 2.5 percent.

Many Fed officials said more progress in the labor market is needed before deciding to slow the pace of asset purchases, according to minutes of their last meeting. A number said they were willing to taper bond buying as early as the next meeting on June 17-18 if economic reports show “evidence of sufficiently strong and sustained growth,” according to the record of the April 30-May 1 gathering released today in Washington.

“Most observed that the outlook for the labor market had shown progress” since the-bond buying program began in September, according to the minutes. “But many of these participants indicated that continued progress, more confidence in the outlook, or diminished downside risks would be required before slowing the pace of purchases would become appropriate.”

Fed Bank of New York President William C. Dudley said in an interview with Michael McKee on Bloomberg Television that policy makers will know in three to four months whether the economy is healthy enough to allow the central bank to begin reducing its stimulus program.

“If they were to taper, it might be a good sign that the economy is capable of standing on its own feet,” Terry L.

Morris, a senior equity manager who helps oversee about $2.6 billion at Wyomissing, Pennsylvania-based National Penn Investors Trust Co., said by phone. “But we’re programmed to believe that the market is going to go down when this happens.

It’s probably what’s going to happen initially, but the market will likely start to work its way higher.”

The S&P 500 has surged 145 percent from its 12-year low in 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases from the Fed. The index trades at 16.2 times reported operating profit, 16 percent below the average since 1998, data compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index, or VIX, jumped 3.4 percent to 13.82. The equity volatility gauge, which moves in the opposite direction to the S&P 500 about 80 percent of the time, has slipped 23 percent this year.

A slide in Treasury prices after Bernanke’s remarks sent the 10-year note’s yield above the S&P 500’s 2.04 percent dividend yield for the first time in more than a year, according to data compiled by Bloomberg.

“The 2 percent is the magic thing on the 10-year yield,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said in a telephone interview.

His firm oversees $1.6 billion. “It’s the threshold so going toward that, people are getting a little worried,” he said.

Utility and phone stocks, which offer the highest dividend yield among 10 industry groups, dropped 1.6 percent and 1.2 percent, respectively. Duke Energy Corp., the largest U.S. utility owner, slipped 1.7 percent to $70.19. AT&T Inc., the country’s biggest phone company, lost 0.9 percent to $36.62.

Target, the second-largest U.S. discount retailer, dropped 4 percent to $68.40. U.S. retailers have been struggling as an increase in Social Security taxes takes a larger bite out of shoppers’ paychecks while colder-than-normal temperatures hurt sales of spring merchandise.

Pfizer Inc. rose 1.8 percent to $29.30 for the largest advance in the Dow. The world’s largest drugmaker will offer its 80.2 percent stake in Zoetis Inc., the animal health company it spun off almost four months ago, in a stock exchange. Zoetis gained 1.5 percent to $33.55.

Bristol-Myers Squibb Co. jumped 5.3 percent to $46.40 after Citigroup Inc. boosted the drugmaker to buy from neutral.

Saks jumped 13 percent to $15.50. The company has hired Goldman Sachs to explore its strategic options, according to two people with knowledge of the matter. KKR & Co. is weighing whether to make an investment in Saks and may push the luxury retaile to pursue a combination with rival Neiman Marcus Group, said people with knowledge of the matter.

Hewlett-Packard Co. surged 13 percent to $23.94 at 4:48 p.m. After the close of regular trading, the largest personal- computer maker forecast fiscal third-quarter profit that topped analysts’ estimates and raised its quarterly dividend as it cut costs to counter slumping demand for desktops and laptops.

Toll Brothers Inc. climbed 2.9 percent to $37.07 in regular trading after beating analysts’ earnings estimates. Demand for new homes has begun to recover as buyers take advantage of low mortgage rates and the supply of existing homes remains tight.

Sales of previously owned U.S. homes rose in April to the highest level in more than three years as housing continued to gain momentum, National Association of Realtors reported today.

Lowe’s Cos. added 1.2 percent to $42.97 after Chief Executive Officer Robert Niblock said the strengthening housing market is helping sales recover from a cold spring that sapped demand for outdoor merchandise. The second-largest U.S. home- improvement retailer today reported first-quarter profit that trailed analysts’ estimates while maintaining its forecast for earnings this year.

Home Depot Inc. rose 1.3 percent to $79.69. The retailer yesterday posted profit and sales that topped estimates.

NetApp Inc. gained 1.8 percent to $37.28 after the data- storage company said it will cut jobs and return cash through stock buybacks and dividends.

Zale Corp. surged 22 percent to $6.60. The operator of the Zales and Piercing Pagoda jewelry chains reported third-quarter revenue of $442.7 million, exceeding the $440 million in sales analysts estimated on average.

 

Have a great evening everyone!

 

Be magnificent!

 

“This is my simple religion. There is no need for temples; no need for complicated philosophy. Our own brain, our own heart is our temple; the philosophy is kindness.” – Dalai Lama

 

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:

This past Monday marked the 115^th Island Farms Victoria Day parade which is the unofficial kick off to the summer here on the West Coast!  An estimated 50,000 people lined up on Douglas Street, starting at Mayfair mall to watch the parade that included many participants.  This is Victoria’s largest parade that hosts marching bands from all over North America, a variety of floats, clowns and many more.  This year the judges awarded Spectrum Community School first place in the Canadian band category, followed by Reynolds Secondary and Lambrick Park Secondary in second and third place.  If you missed the parade this year, make sure to check it out next year!

On this day in…

1790 – Paris was divided into 48 zones.

1819 – Bicycles were first seen in the U.S. in New York City. They were originally known as “swift walkers.”

1840 – New Zealand was declared a British colony.

1881 – The American branch of the Red Cross was founded by Clara Barton.

1922 – The cartoon, “On the Road to Moscow,” by Rollin Kirby won a Pulitzer Prize. It was the first cartoon awarded the Pulitzer.

1927 – Charles A. Lindberg completed the first solo nonstop airplane flight across the Atlantic Ocean. The trip began May 20.

1929 – The first automatic electric stock quotation board was used by Sutro and Company of New York City. 

“If you have only one smile in you give it to the people you love.” – Maya Angelou

Photos of the day – May 21^st, 2013

Lightning from a tornadic thunderstorm passing over Clearwater, Kansas, strikes at an open field, May 19, 2013. A massive storm front swept north through the central United States on Sunday, hammering the region with fist-sized hail, blinding rain and tornadoes, including a half-mile wide twister that struck near Oklahoma City. News reports said at least one person had died. Gene Blevins/Reuters

British artist Marc Quinn poses for a photograph with his sculpture of an orchid in the Royal Horticultural Society (RHS) garden during media day at the Chelsea Flower Show in London. Stefan Wermuth/Reuters

Market Closes for May 21^st, 2013

Market  Index	Close	Change
Dow  Jones	15387.58	+52.30    +0.34%
S&P 500	1669.16	+2.87    +0.17
NASDAQ	3502.124	+5.691    +0.16%
TSX	12742.43	+129.38
		+1.03%

International Markets

Market  Index	Close	Change
NIKKEI	15381.02	+20.21
		+0.13%
HANG  SENG	23366.37	-126.66
		-0.54%
SENSEX	20111.61	-112.37
		-0.56%
FTSE 100	6803.87	+48.24
		+0.71%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.909	1.922
CND.   30 Year Bond	2.527	2.527
U.S.   10 Year Bond	1.9263	1.9506
U.S.   30 Year Bond	3.1309	3.1669

Currencies

BOC Close	Today	Previous
Canadian $	0.97392	0.97270
US   $	1.02678	1.02807
Euro Rate  1 Euro=		Inverse
Canadian   $	1.32527	0.75456
US  $	1.29071	0.77477

Commodities

Gold	Close	Previous
London Gold   Fix	1376.22	1359.55
Oil	Close	Previous
WTI Crude Future	96.09	96.02
BRENT	103.24	104.97

Market Commentary:

Canada

By Nikolaj Gammeltoft

May 21 (Bloomberg) — Canadian stocks rose for a third day, sending the benchmark equity gauge to the highest level in almost two months, as commodity producers and banks rallied.

Canadian Natural Resources Ltd., the country’s third- largest energy company by market value, increased 4.2 percent as an index that tracks oil and gas producers surged. Pretium Resources Inc., a gold miner, jumped 13 percent. Barrick Gold Corp., the world’s biggest miner of the precious metal by sales, gained 4.3 percent. Royal Bank of Canada, the nation’s largest lender, surged 2.7 percent.

The Standard & Poor’s/TSX Composite Index rose 129.38 points, or 1 percent, to 12,742.43 at 4 p.m. in Toronto. The benchmark gauge has gained 2.2 percent over three trading days to the most since March 28.

“The market is being helped by strength in the big sector groups that dominate,” Greg Eckel, a Toronto-based fund manager with Morgan Meighen & Associates, said in a phone interview. His firm manages about C$1 billion ($970 million). “We’ve been lagging the major indexes by so much, so there’s probably a view that there’s some value in this market.”

The S&P/TSX has gained 2.5 percent this year, the smallest advance among 24 developed-market gauges tracked by Bloomberg.

Eight out of 10 industries in the S&P/TSX index rose today.

Commodity producers and banks account for 75 percent of the benchmark gauge.

The S&P/TSX Energy Index added 1.3 percent for a third day of advances and its highest level in 14 months. Oil fell in New York for the first time in five days.

Encana Corp. jumped 3.9 percent to C$20.16, the highest level in two months, and Canadian Natural Resources added 4.2 percent to C$31.66.

Raw-materials producers rose 1.6 percent as a group. The index that tracks miners has fallen 25 percent this year, the worst performance in the S&P/TSX, as gold prices slumped into a bear market.

Barrick Gold rose 4.3 percent to C$19.88 today. Pretium Resources, the developer of the Valley of the Kings gold discovery in northwest Canada, rose the most in the Canadian benchmark gauge, soaring 13 percent to C$7.20.

Royal Bank of Canada advanced 2.7 percent to C$63.86 and Bank of Nova Scotia gained 1.7 percent to C$59.74 to lead lenders higher.

Health-care companies tumbled 2.8 percent as a group, dragged lower by Valeant Pharmaceuticals International Inc., which lost 3.3 percent to C$77.78.

US

By Lu Wang and Inyoung Hwang

May 21 (Bloomberg) — U.S. stocks rose, sending benchmark indexes to records, after Federal Reserve Bank of St. Louis President James Bullard said the central bank should continue its bond buying to boost growth.

Home Depot Inc. jumped 2.5 percent after raising its earnings forecast as the housing rebound spurs renovation spending. JPMorgan Chase & Co. rose 1.4 percent as Jamie Dimon survived a campaign to split his chairman and chief executive officer titles. Apple Inc. fell 0.7 percent as the company faced a Senate panel that yesterday released a report saying the iPhone maker used loopholes to avoid paying taxes.

The Standard & Poor’s 500 Index gained 0.2 percent to an all-time high of 1,669.16 at 4 p.m. in New York. The Dow Jones Industrial Average added 52.30 points, or 0.3 percent, to 15,387.58. About 6.2 billion shares changed hands today, in line with the three-month average.

“We have a long stretch now with no significant decline and I think that’s going to continue until there is some significant concern about the Fed stopping,” Jason Thomas, chief investment officer of Los Angeles-based Aspiriant, said in a phone interview. Aspiriant is an independent wealth management firm with over $7 billion in asset under management.

The Fed purchases known as quantitative easing should be maintained because financial markets indicate that they are improving financial conditions and can be adjusted based on how the economy changes, Bullard, who votes on the policy-setting Federal Open Market Committee this year, said today, according to the text of remarks prepared for delivery in Frankfurt.

Fed Bank of New York President William C. Dudley said in a separate speech today that he has not decided whether the next move should be to enlarge or to shrink the bond-buying program.

The central bank’s chairman, Ben S. Bernanke, testifies on the outlook for the U.S. economy before the Joint Economic Committee of Congress tomorrow. The FOMC also releases the minutes of its April 30-May 1 meeting tomorrow. Policy makers said after their last meeting that they will keep buying $85 billion of bonds every month, while standing ready to raise or lower purchases as conditions evolve.

Some policy makers in recent months have signaled they favor scaling back the quantitative-easing program in the next few months. Stocks erased gains yesterday after Fed Bank of Chicago President Charles Evans said the U.S. economy has improved “quite a lot” as the central bank maintains record stimulus. The question now is “how much confidence we have that the improvements that have been made will continue and be sustained,” said Evans, who holds a vote on the FOMC this year.

“I view a move by the Fed toward normalizing monetary policy as ultimately a good thing,” Liz Ann Sonders, chief investment strategist at Charles Schwab Corp., said on Bloomberg Television. Her firm has $2 trillion in client assets. “It will be a taper; they’re not going to grind this to a halt all of a sudden. If the reason is that economic growth has picked up with inflation expectations still fairly benign, then that’s the best reason for the Fed to do it.”

The S&P 500 has surged 147 percent from its 12-year low in 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases from the Fed.

Goldman Sachs Group Inc. said the U.S. stock-market rally may last at least another 2 1/2 years and send the S&P 500 up 26 percent to 2,100. David Kostin, the bank’s New York-based chief U.S. equity strategist, raised forecasts for the U.S. equity benchmark, predicting it will finish 2013 at 1,750 and 2014 at 1,900 as stock valuations increase, according to a research report dated yesterday.

The S&P 500 trades at 16.3 times reported operating profit,16 percent below the average since 1998, data compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index, or VIX, rose 2.7 percent to 13.37. The equity volatility gauge, which moves in the opposite direction to the S&P 500 about 80 percent of the time, has slipped 26 percent this year.

Five out of the 10 S&P 500 industries gained as consumer- discretionary and health-care companies climbed at least 0.5 percent.

Eight companies on the S&P 500 reported financial results today. Of the stocks that have released earnings this season, 71 percent have beaten analysts’ estimates, while 52 percent have missed analysts’ sales predictions.

Home Depot increased 2.5 percent to $78.71. America’s largest home-improvement retailer beat analyst estimates for first-quarter profit. Home Depot is benefiting from rising U.S. home prices that are giving homeowners the confidence to start projects and spend more. Profit this year will be $3.52 a share, up from a previous estimate of $3.37, the company said.

Lowe’s Cos. added 0.2 percent to $42.45. The second-largest home-improvement retailer is scheduled to report quarterly results tomorrow.

JPMorgan gained 1.4 percent to $53.02. CEO Dimon, 57, won shareholder support to keep his chairman title, surviving a campaign to split the roles after a record trading loss at the biggest U.S. bank. The proposal to divide Dimon’s duties won 32.2 percent of the votes, down from 40 percent last year, the bank said today at its annual meeting in Tampa, Florida.

Medtronic Inc. jumped 4.9 percent to $52.35. The world’s biggest maker of heart-rhythm devices posted fourth-quarter earnings of $1.10 a share, exceeding the $1.03 profit projected by analysts on average. Sales in the period also beat estimates.

Merck & Co. rallied 4.7 percent, the most in the Dow, to $47.33. The company’s recently scheduled analyst meeting sparked speculation that it may make a “material” announcement on drugs, according to Mark Schoenebaum, an analyst with International Strategy & Investment Group LLC.

AutoZone Inc. advanced 4.6 percent to $427.84. The auto- parts retailer earned $7.27 a share in the fiscal third quarter, exceeding the average analyst estimate of $7.21.

Saks Inc. surged 11 percent to $13.67 for the biggest increase since August 2010. The luxury retail chain reported first-quarter sales and profit that beat analysts’ estimates.

Clearwire Corp. rallied 4.3 percent to $3.40. Sprint Nextel Corp. increased its bid for full control of the wireless broadband service provider, seeking to persuade shareholders to accept its offer over a competing proposal from Dish Network Corp. Sprint gained 1.4 percent to $7.39.

Apple fell 0.7 percent to $439.66. Chief Executive Officer Tim Cook and Chief Financial Officer Peter Oppenheimer appeared before a Senate panel that yesterday released a report saying the iPhone maker has created a web of offshore entities to avoid paying billions of dollars in U.S. taxes.

Democrats and Republicans on the panel say Apple’s tax maneuverings, while not illegal, will help frame the debate about how to make the corporate tax system more fair. Senator John McCain of Arizona, the panel’s top Republican, said he and Senator Carl Levin, a Michigan Democrat, are seeking to craft a bipartisan proposal that would end some of the tax benefits, although the timing of an agreement isn’t clear.

Carnival Corp. plunged 4.3 percent to $33.81 as it said price cuts undertaken after a series of mishaps will hurt margins. The company’s revenue per customer has fallen since it cut ticket prices in an attempt to fill cabins.

Rival cruise operator Royal Caribbean Cruises Ltd. lost 2.4 percent to $36.89.

Travelers Cos. fell 2.2 percent, the most in the Dow, to $83.63 as property insurers face losses from a mile-wide tornado that flattened a suburb south of Oklahoma City yesterday.

Allstate Corp. slipped 1.5 percent to $49.08.

Urban Outfitters Inc. lost 2.7 percent to $43.27 after the retailer reported quarterly sales that missed analysts’ estimates. Sales of $648.2 million fell short of the $655.1 million average estimate compiled by Bloomberg.

Best Buy Co. dropped 4.4 percent to $25.64 as the biggest consumer-electronics retailer posted an $81 million first- quarter net loss as the company lowers prices to compete with online rivals.

 

Have a great evening everyone!

 

Be magnificent!

 

“It is very important to generate a good attitude, a good heart, as much as possible. From this, happiness in both the short term and the long term for both yourself and others will come.” – Dalai Lama

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

 

Dear Friends,

Tangents:

Happy Victoria Day Weekend Everyone!

As Carolann is out of the office this afternoon, I will be sending the newsletter on her behalf.

This weekend at Topaz Park marks the 150^th Victoria Highland Games.  A few events taking place this year are the tartan parade, kilted golf tournament along with many more great events.  Take a look at the picture from this year’s tartan parade:

On this day in…

1792 – The New York Stock Exchange was founded at 70 Wall Street by 24 brokers.

1875 – The first Kentucky Derby was run at Louisville, KY.

1877 – The first telephone switchboard burglar alarm was installed by Edwin T. Holmes.

1932 – The U.S. Congress changed the name “Porto Rico” to “Puerto Rico.”

1939 – The first fashion to be shown on television was broadcast in New York from the Ritz-Carleton Hotel.

1975 – NBC TV bought the rights to show “Gone With the Wind.” The one time rights cost NBC $5,000,000.

“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.”– Helen Keller

Photos of the day – May 17^th, 2013

A sparrow watches its mate enter a nesting box at the Scarborough Marsh in Scarborough, Maine. Robert F. Bukaty/AP

A langur baby looks out resting in the lap of its mother at the Khandagiri cave hills in the eastern Indian city of Bhubaneswar, India. Biswaranjan Rout/AP

Market Closes for May 17^th, 2013

Market  Index	Close	Change
Dow  Jones	15354.40	+121.18    +0.80%
S&P 500	1667.47	+17.00    +1.03
NASDAQ	3498.965	+33.722    +0.97%
TSX	12613.05	+105.45
		+0.84%

International Markets

Market  Index	Close	Change
NIKKEI	15138.12	+100.88
		+0.67%
HANG  SENG	23082.68	+38.44
		+0.17%
SENSEX	20286.12	+38.79
		+0.19%
FTSE 100	6723.06	+35.26
		+0.53%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.922	1.889
CND.   30 Year Bond	2.527	2.498
U.S.   10 Year Bond	1.9506	1.8757
U.S.   30 Year Bond	3.1669	3.0951

Currencies

BOC Close	Today	Previous
Canadian $	0.97270	0.98147
US   $	1.02807	1.01888
Euro Rate  1 Euro=		Inverse
Canadian   $	1.31991	0.75763
US  $	1.28387	0.77889

Commodities

Gold	Close	Previous
London Gold   Fix	1359.55	1386.75
Oil	Close	Previous
WTI Crude Future	96.02	95.11
BRENT	104.97	104.10

Market Commentary:

Canada

By Lu Wang and Eric Lam

May 17 (Bloomberg) — Canadian stocks rose a second day, erasing a weekly loss, as energy producers rallied following economic data that signaled growth in the U.S. is accelerating.

Suncor Energy Inc. and Athabasca Oil Corp. climbed at least 2.6 percent as oil rose for a third day. Just Energy Group Inc. added 6.9 percent after RBC Dominion Securities Inc. said a dividend cut is not imminent. Gold stocks accounted for all 10 worst performers in the Standard & Poor’s/TSX Composite Index.

Copper Mountain Mining Corp. sank 9.5 percent after Dundee Securities Corp. cut the stock’s rating.

The S&P/TSX rose 105.45 points, or 0.8 percent, to 12,613.05 at 4 p.m. in Toronto, for a weekly gain of 0.2 percent. The benchmark equity gauge is up 1.4 percent this year, the worst performance among the 24 biggest developed markets tracked by Bloomberg.

“Rising tides are lifting all markets, good and bad,” Barry Schwartz, fund manager with Baskin Financial Services Inc. in Toronto, said in a phone interview. He helps manage about C$500 million ($487 million). “We still have some deep issues with the index because of the exposure to gold, which continues to be pummeled and hated by every investor. But the rising tide in the U.S. is a force that the Canadian market can’t fight against.”

The index of U.S. leading indicators climbed in April, a rebound from March that suggests the world’s largest economy may be poised for further expansion. The Conference Board’s gauge of the outlook for the next three to six months climbed 0.6 percent in April after falling a revised 0.2 percent in March that was steeper than previously reported, the New York-based group said. The U.S. is Canada’s biggest trading partner.

Nine out of 10 industry groups in the S&P/TSX advanced today, with raw-materials producers falling. Health-care and energy companies gained the most, climbing at least 1.7 percent.

Suncor Energy, Canada’s largest energy company by market value, advanced 2.6 percent to C$32.92. Athabasca rose 5.7 percent to C$6.53.

Just Energy jumped 6.9 percent to C$7.55, extending a 13 percent rally from yesterday, when the electricity and natural gas utility reported quarterly profit that beat analysts’ estimates. The company can sustain a high dividend payout ratio as cost cuts helped overcome limited customer growth, Nelson Ng, an analyst with RBC, wrote in a note to clients today.

Raw-materials producers dropped 1.6 percent as a group in the S&P/TSX. The industry has slumped 26 percent this year amid concerns China is settling into a slower growth path, mining companies face escalating costs and gold’s status as a safe haven is diminishing as the U.S. economy gains momentum.

Semafo Inc., which explores gold in West Africa, tumbled 12 percent to C$1.55 and Detour Gold Corp. retreated 9.9 percent to C$8.71.

Copper Mountain plunged 9.5 percent to C$1.52. The company said in a statement yesterday that operations at a mill in British Columbia will be suspended until tomorrow because of a motor transformer failure. Joseph Gallucci, an analyst with Dundee, cut the stock’s rating to sell from buy.

US

By Stephen Kirkland and Nikolaj Gammeltoft

May 17 (Bloomberg) — U.S. stocks rebounded from yesterday’s drop and the Dollar Index rose to the highest level since July 2010 as better-than-estimated economic data fueled speculation the Federal Reserve will consider scaling back stimulus. Gold extended its longest slump in four years.

The Standard & Poor’s 500 Index climbed 0.9 percent to a record 1,666.12 at 4 p.m. in New York and the Stoxx Europe 600 Index closed 0.2 percent higher. The gauge of the U.S. currency against six major trade partners gained 0.8 percent to 84.28.

The rand sank to its weakest level since 2011 and the Aussie slid to the lowest in almost a year. Gold for immediate delivery fell for a seventh day, while 10-year Treasury yields rose seven basis points to 1.95 percent.

The S&P 500 extended gains today after reports showed consumer sentiment improved and the Conference Board’s index of leading indicators rebounded in April. The U.S. central bank may reduce its $85 billion in monthly bond-buying as early as this summer amid signs the economy is gaining strength, Fed Bank of San Francisco President John Williams said.

“Today’s data was good, an almost mirror image of yesterday’s in terms of quality,” Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which oversees about $380 billion, said by phone. “It’s been an unsteady recovery, but the trend is positive. The glass half-full view is that the Fed will begin to decelerate quantitative easing only when they see the economy improving enough.”

Options contracts on stocks, exchange-traded funds and indexes expire today, leading investors to adjust their holdings of some securities. Trading of S&P 500 stocks was in line with the 30-day average at this time of day.

The Fed’s stimulus efforts have helped fuel a rally in stocks that sent the S&P 500 up 17 percent so far this year and 146 percent from its bear-market low in 2009. The rally pushed 193 stocks in the S&P 500, or 39 percent of the gauge, to their highest levels in at least 52 weeks on May 15, the most in Bloomberg data going back to 1993.

Boeing Co., JPMorgan Chase & Co., Microsoft Corp. and United Technologies Corp. added more than 2 percent to lead the Dow Jones Industrial Average’s gain today. Northrop Grumman Corp. climbed 4 percent after increasing its share-buyback program by $4 billion. J.C. Penney Co. slid 4.2 percent after its first-quarter net loss widened.

The index of U.S. leading indicators climbed in April, a rebound from March that suggests the world’s largest economy may be poised for further expansion. The Conference Board’s gauge of the outlook for the next three to six months climbed 0.6 percent in April after falling in March. The median forecast of economists surveyed by Bloomberg called for a 0.2 percent increase.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 83.7 in May from 76.4 the prior month, a report today showed. The median forecast in a survey was for a gain to 77.9. Forecasts ranged from 74 to 82.5.

Bank of America Corp. equity strategist Savita Subramanian lowered her 2013 forecast for S&P 500 earnings-per-share by $1 to $109, citing weakness in “globally-exposed sectors such as tech and industrials” that is overshadowing brighter prospects for U.S.-focused groups such as financials. The strategist introduced a 2014 forecast of $115 a share, which implies almost 6 percent growth and is lower than a projection of $123 derived from analysts covering individual companies.

“While we expect global economic growth to accelerate in 2014, growth will continue to be hampered by global fiscal austerity with limited scope for significant incremental monetary easing,” she wrote in a report to clients. “And given how lean corporate cost structures have already been cut, we believe it will be difficult for corporations to generate further earnings growth through further margin expansion. As such, we expect the S&P 500 to maintain the current growth trajectory” of 5 percent to 6 percent annually.

The dollar gained against all 16 of its major peers. The euro slipped 0.4 percent to $1.2831 and the yen weakened 1 percent to 103.29 per dollar, the weakest level since October 2008.

“Part of the reason for the current favorable dollar sentiment is the expectations of a change in monetary stance later this year,” Derek Halpenny, European head of global- markets research at Bank of Tokyo-Mitsubishi UFJ Ltd. in London, wrote in a report. The Fed’s Williams “is viewed as dovish” so his comments “carried more weight,” he wrote.

The Australian dollar declined as much as 1 percent to 97.11 U.S. cents, the weakest level since June. It has slid 2.9 percent over the past five days. New Zealand’s currency dropped 1.1 percent to 80.67 U.S. cents, the lowest level since November.

The rand fell for a seventh day to extend its longest losing streak against the dollar in a year on concern that renewed labor unrest and falling commodity prices will weigh on South Africa’s economy. The currency depreciated as much as 1.3 percent to 9.4413 per dollar, falling for a seventh straight day.

The Stoxx 60 advanced 1.2 percent in five days, a fourth straight week of gains, and reached its highest level in almost five years. FLSmidth & Co. A/S, Europe’s biggest maker of cement production lines, slid 9.7 percent today, the most since 2011, as earnings missed estimates. Coca-Cola HBC AG lost 5.3 percent as Credit Suisse Group AG managed the sale of a 1.7 percent stake in the drinks bottler.

PSA Peugeot Citroen surged 10 percent and Renault SA advanced more than 3.5 percent in Paris as European car sales rose for the first time in 19 months in April amid signs that governments may take measures to stem a contraction in the euro- area economy.

The MSCI Emerging Markets Index lost 0.2 percent, heading for its first weekly decline in a month as gauges in Brazil, Taiwan, the Philippines and Czech Republic declined at least 0.3 percent. Russia’s Micex index climbed 2 percent as oil rebounded. The Shanghai Composite Index jumped 1.4 percent on speculation the government won’t impose more real-estate curbs as the economy slows. Markets were closed in Hong Kong and South Korea.

Spanish and Italian bonds rose for a third day after European governments issued almost 37 billion euros of bonds and notes this week. Italy’s 10-year yield dropped eight basis points to 3.90 percent, while Spain’s decreased 10 basis points to 4.21 percent.

Gold dropped 1.6 percent to $1,364.70 an ounce and silver slid 1.4 percent while coffee plunged 2.1 percent for the biggest declines in the S&P GSCI Index, while natural gas jumped 3.1 percent corn rallied 1.7 percent to lead the commodities gauge higher. West Texas Intermediate oil advanced 0.9 percent to $96.02 a barrel.

The surge in natural gas futures posted the came as the U.S. conditionally approved a Texas liquefied natural gas project. Gas jumped as much as 4.2 percent. The Freeport LNG export project received only the second approval from the Energy Department to export gas to countries that don’t have free-trade agreements with the U.S. The facility would be able to export 1.4 billion cubic feet a day.

 

Happy long weekend everyone!

 

Be magnificent!

 

“Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.” – Buddha

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

Dear Friends,

Tangents:

On this day in…

1717 – Voltaire was imprisoned in the Bastille for his satirical attack on political and religious institutions.

1920 – Joan of Arc was canonized as a saint.

1929 – The first Academy Awards ceremony was held in Los Angeles.

1770 – Marie Antoinette, age 14 years, married the future King Louis XVI of France, who was 15 years old.

1966 – Bob Dylan released his Blonde on Blonde album.

2000 – Britney Spear’s second album, Oops! … I Did it Again, is released, debuting at No. 1 and selling more than 1 million copies in its first week.

2002 – George Lucas’s Star Wars: Episode ll – Attack of the Clones, opened in theatres, starring Natalie Portman & Ewan McGregor.

Men are wise in proportion not to their experience, but to their capacity for experience. –James Boswell.

Photos of the day – May 16^th, 2013

Chinese inventor Tao Xiangli modifies the circuits of his self-made robot at his house in Beijing. Tao, 37, spent about 150,000 yuan (USD 24,407) and more than 11 months to build the robot out of recycled scrap metals and electric wires that he bought from a second-hand market. Suzie Wong/Reuters

A boy watches jellyfish swim in a large tank at the Vancouver Aquarium in Vancouver, British Columbia. The tank contains around 2,000 spotted jellyfish and is part of a major display of 15 various species from around the world. Andy Clark/Reuters

Market Closes for May 16th, 2013

Market  Index	Close	Change
Dow  Jones	15233.22	-42.47    -0.28%
S&P 500	1650.27	-8.51    -0.51
NASDAQ	3465.243	-6.373    -0.18%
TSX	12495.97	+22.32
		+0.18%

International Markets

Market  Index	Close	Change
NIKKEI	15037.24	-58.79
		-0.39%
HANG  SENG	23082.68	+38.44
		+0.17%
SENSEX	20247.33	+34.37
		+0.17%
FTSE 100	6687.80	-5.75
		-0.09%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.889	1.920
CND.   30 Year Bond	2.498	2.533
U.S.   10 Year Bond	1.8757	1.9347
U.S.   30 Year Bond	3.0951	3.1559

Currencies

BOC Close	Today	Previous
Canadian $	0.98147	0.98370
US   $	1.01888	1.01657
Euro Rate  1 Euro=		Inverse
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Market Commentary:

Canada

By Inyoung Hwang

May 16 (Bloomberg) — Canadian stocks rose as industrial shares rallied and energy producers gained amid higher oil prices fueled by central-bank stimulus speculation.

Pengrowth Energy Corp. and Athabasca Oil Corp. added at least 2.2 percent as crude prices rose for a second day. Telus Corp. rallied 1.2 percent after agreeing to buy Mobilicity for C$380 million ($373 million). CAE Inc. and Westjet Airlines Ltd. rallied at least 7.1 percent to pace gains among industrial stocks.

The Standard & Poor’s/TSX Composite Index rose 38.28 points, or 0.3 percent, to 12,511.28 at 2:49 p.m. in Toronto.

The benchmark gauge for Canadian equities has added 0.6 percent this year. Trading volume was 11 percent lower than the 30-day average at this time of the day.

“Today is a bit of a return to reality for markets, that the environment is not that bad,” said David Cockfield, fund manager with Northland Wealth Management in Toronto. He helps manage C$225 million at the firm. “The environment for a number of the oil producers has improved.”

U.S. economic data showed starts of new homes fell to a five-month low, jobless claims jumped to a six-week high and the cost of living fell in April for a second month, fueling speculation that the Federal Reserve will be in no hurry to scale back stimulus.

The disappointing U.S. data pushed oil prices higher by more than 1.3 percent in New York, reversing an earlier loss of as much as 1.1 percent.

Energy stocks contributed most to gains in the S&P/TSX, rising 0.5 percent as a group. Pengrowth Energy rallied 2.2 percent to C$5.18 and Athabasca Oil jumped 5.5 percent to C$6.14.

Western Canada Select oil rose 1.1 percent to C$77.11. The price difference between West Texas Intermediate and the Canadian oil-sands benchmark has narrowed to $18 in the past two days, the smallest gap since May 1, according to data compiled by Bloomberg. Canadian energy companies sell at a discount as they can’t easily export crude to other markets.

“The price spread in Alberta has narrowed significantly,” Cockfield said, citing an increase in using rail lines to ship crude. “It’s a new factor that’s really helping the producers.”

Industrial stocks advanced 1 percent for the biggest gain in the index, as eight of 10 groups in the S&P/TSX rose.

Canadian Pacific Railway Ltd. advanced 1.7 percent to a record C$139.01 and Canadian National Railway Co. increased 0.3 percent to C$103.55.

CAE, which makes flight simulation training equipment, jumped 7.8 percent to C$11.43, headed for the highest close since August 2011. The company reported fourth-quarter adjusted earnings that surpassed analysts’ estimates.

Westjet rallied 7.1 percent to C$22.92 after Chief Executive Officer Gregg Saretsky said the company will save C$30 million from a flight attendant exemption and cut costs at one of its regional airlines.

Chorus Aviation Inc., a Toronto-based competitor, slumped 5.8 percent to C$2.44.

Telus, Canada’s third-largest wireless operator, gained 1.2 percent to C$37.40 after agreeing to buy struggling mobile-phone provider Mobilicity in a bid to gain ground on its larger rivals Rogers Communications Inc. and BCE Inc.

Rogers dropped 1 percent to C$47.74 and BCE fell less than 0.1 percent to C$47.84.

US

By Nikolaj Gammeltoft

May 16 (Bloomberg) — U.S. stocks fell, ending four days of records for the Standard & Poor’s 500 Index, amid disappointing economic data and after a Federal Reserve official said the central bank may slow the pace of stimulus as early as this summer.

Wal-Mart Stores Inc. lost 1.7 percent after the world’s largest retailer forecast second-quarter profit that was less than analysts estimated as the slow U.S. economy and higher taxes put pressure on consumers. PulteGroup Inc. and D.R. Horton Inc. fell at least 2.3 percent as housing starts slumped in April. Cisco Systems Inc. surged 13 percent after reporting fiscal third-quarter profit that topped estimates.

The S&P 500 fell 0.5 percent to 1,650.47 at 4 p.m. in New York. The Dow Jones Industrial Average dropped 42.47 points, or 0.3 percent, to 15,233.22. More than 6.4 billion shares traded hands on U.S. exchanges today, or 2 percent above the three- month average.

“The U.S. economy is still struggling with lackluster growth and the recovery is far from self-sustaining, so equity markets are looking for guidance from central banks for their liquidity high,” Chad Morganlander, a Florham Park, New Jersey- based fund manager at Stifel Nicolaus & Co., which oversees about $130 billion, said by phone.

The U.S. bull market has entered its fifth year. The S&P 500 has surged 144 percent from a 12-year low in 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases from the Federal Reserve.

Equities extended losses this afternoon as Fed Bank of San Francisco President John Williams said the central bank may begin slowing the pace of its $85 billion in monthly bond-buying amid signs the economy is gradually gaining strength.

“It’s clear that the labor market has improved since September” when the Fed began its latest round of asset purchases, Williams said today in a speech in Portland, Oregon.

“We could reduce somewhat the pace of our securities purchases, perhaps as early as this summer” and end the program late this year.

Williams was one of the first Fed officials to advocate that the Fed buy bonds without setting a limit on the duration or total for such purchases. The central bank has pumped up its balance sheet to $3.32 trillion through so-called quantitative easing.

Fed Chairman Ben Bernanke has said he would continue unprecedented stimulus until the jobless rate falls to 6.5 percent or inflation rises above 2.5 percent.

Reports today suggested a slowdown in U.S. economic growth.

Jobless claims jumped by 32,000 to 360,000 in the week ended May 11, the most since the end of March, Labor Department figures showed. Housing starts slumped 16.5 percent in April, the most since February 2011, the Commerce Department reported.

Manufacturing in the Philadelphia region unexpectedly contracted in May for the first time in three months as new orders retreated and factories cut back on employment and hours.

Another report showed the cost of living in the U.S. fell in April for a second month, the first back-to-back declines in inflation since late 2008.

“We think it’s unlikely the Fed is going to tighten monetary policy before the end of this year at the earliest, but that doesn’t mean stocks can’t have a sloppy day because some people think it’s going to happen imminently,” Philip Orlando, chief equity strategist at Federated Investors, which has about $380 billion in assets under management, said by telephone.

“There are large swaths of market participants who believe the only reason for the stock market to be up 145 percent over the past four years is because of central bank intervention.”

The market’s rally has pushed 193 stocks in the Standard & Poor’s 500 Index, or 39 percent of the index, to their highest levels in at least 52 weeks, the most in Bloomberg data going back to 1993. The cumulative advance-decline line for stocks listed on the New York Stock Exchange, representing the number of daily gains minus declines, reached a record 63,856 yesterday.

Gains accelerate when corporate profits and the economy surprise a market dominated by skepticism, according to Laszlo Birinyi, president of Westport, Connecticut-based Birinyi Associates Inc. and among the first to advise buying U.S. stocks before the bull market began in 2009. He reiterated that the S&P 500 may climb 15 percent to 1,900 should it conform to bull markets that began in 1982 and 1990.

“Everything is going up, it’s not just tech or industrials or dividends,” Birinyi said today in an interview with Francine Lacqua and Guy Johnson on Bloomberg Television in London. “It’s not just central banks. Earnings are good, the psychology is people are fighting the tape,” he said. “Basically the psychology is, ‘I missed it.’”

The Chicago Board Options Exchange Volatility Index, or VIX, rose 2 percent to 13.07. The equity volatility gauge, which moves in the opposite direction to the S&P 500 about 80 percent of the time, has slipped 27 percent this year.

Nine out of 10 groups in the S&P 500 retreated today, with health-care and consumer-discretionary shares dropping at least 1 percent.

Wal-Mart fell 1.7 percent to $78.50. Chief Executive Officer Mike Duke has cut prices on groceries and other necessities as the chain’s lower-income shoppers deal with elevated unemployment and increased Social Security taxes.

First-quarter sales at U.S. Wal-Mart stores open at least 12 months fell 1.4 percent, the first drop after six straight gains. Analysts estimated a 0.1 percent decline.

The retailer forecast second-quarter profit will be $1.22 to $1.27 a share. Analysts had projected $1.29, the average of 24 estimates compiled by Bloomberg.

An index that tracks homebuilder stocks slumped 1.9 percent as all 11 members retreated. The gauge has gained 21 percent this year. PulteGroup, the largest U.S. homebuilder by revenue, dropped 2.6 percent to $23.35. D.R. Horton. lost 2.3 percent to $26.80.

Berkshire Hathaway Inc. Class B shares slid 1.1 percent to $111.54 after S&P lowered the company’s credit rating. S&P cut Berkshire to AA from AA+, saying the downgrade “better reflects our view of BRK’s dependence on its core insurance operations for most of its dividend income,” referring to Warren Buffett’s company by its ticker symbol.

Advanced Micro Devices Inc., which makes semiconductors, slid 13 percent to $3.83. The stock has surged 60 percent since April 15, sparked by Sony Corp.’s decision to use AMD chips for the next version of its PlayStation console.

Technology shares rallied 0.7 percent as a group, with Cisco Systems surging 13 percent to $23.89. Cisco is benefiting as companies step up investments in data-traffic networks to accommodate users who are increasingly relying on smartphones and tablets to watch video and surf the Web.

Microsoft Corp. gained 0.7 percent to $34.08, the highest in five years. The run-up made co-founder Bill Gates the world’s richest person today, the first time he has held the title since 2007. His fortune was valued at $72.7 billion at 4 p.m. in New York, according to the Bloomberg Billionaires Index.

Tesla Motors Inc. gained 8.7 percent to $92.25. The electric-car maker run by Elon Musk said in a U.S. regulatory filing that it will use the proceeds from selling 2.7 million shares, valued at $229 million at yesterday’s closing price, and $450 million in convertible senior notes due in 2018, to pay off a federal loan and fund other operations.

Kohl’s Corp. soared 4.7 percent to $52.03, the highest since November. The third-largest U.S. department-store chain reported first-quarter profit of 66 cents a share, while analysts surveyed by Bloomberg had estimated 57 cents on average.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Nature is forever giving us chance after chance at what we call rebirth and death, and we, in our folly, in our fear of death, fail to understand that which represents a new journey, a new page on which to write, and thus to believe in a new beginning for ourselves….

The truth is that my body has come to existence, and that it will cease to exist.  I am eternal.

Rev. Parthasarathi Rajaagopalachari, 1878-1972

As ever,

 

Carolann

 

Ambition is the last refuge of the failure.

-Oscar Wilde, 1854-1900

Rebus angustis animosus atque fortis appare; sapienter idem contrahes vento nimium secundo, turgida vela. –Horace.

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