Dear Friends,

Tangents:

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

Every autumn, millions of Pacific salmon forge their way up the myriad streams of the Pacific northwest to spawn and die. Pacific salmon have always been fishes of mystery. We know them well as fine food, and as superb sport fish, but the details of how they spend their time in the ocean and of how they find their way back to their home pools in their parent streams are even today not fully understood. In Goldstream, salmon appear about mid-October, and may be seen for about nine weeks, the dates varying from year to year. Of the five kinds of North American Pacific salmon it is the Chum salmon that is most abundant in this river, though you may also see some Coho and Chinook salmon, as well as the Steelhead and the Cutthroat trout.  Grab a coffee, the kids and take a hike out to Goldstream Park!

“Always aim at complete harmony of thought and word and deed. Always aim at purifying your thoughts and everything will be well.”

Mahatma Gandhi

Photos of the Day:

A woman views autumn colors of a climbing plant across a wall in central London. Toby Melville/Reuters

One World Trade Center (l.) is reflected in the glass facade of its neighbor, 4 World Trade Center in New York. A ribbon-cutting was held to open the 978-foot (298-meter) 4 World Trade Center. Four World Trade is designed by Japanese architect Fumihiko Maki. Mark Lennihan/AP

Market Closes for November 14^th, 2013

Market  Index	Close	Change
Dow  Jones	15876.22	+54.59    +0.35%
S&P 500	1790.62	+8.62    +0.48%
NASDAQ	3972.740	+7.165    +0.18%
TSX	13431.38	+60.72
		+0.45%

International Markets

Market  Index	Close	Change
NIKKEI	14876.41	+309.25
		+2.12%
HANG  SENG	22649.15	+185.32
		+0.82%
SENSEX	20399.42	+205.02
		+1.02%
FTSE 100	6666.13	+36.13
		+0.54%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.559	2.598
CND.   30 Year Bond	3.114	3.151
U.S.   10 Year Bond	2.6935	2.7162
U.S.   30 Year Bond	3.7885	3.8272

Currencies

BOC Close	Today	Previous
Canadian $	0.95563	0.95667
US   $	1.04643	1.04529
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40878	0.70984
US  $	1.34627	0.74279

Commodities

Gold	Close	Previous
London Gold   Fix	1287.65	1275.79
Oil	Close	Previous
WTI Crude Future	94.02	93.88
BRENT	109.360	109.360

Market Commentary:

Canada

By Eric Lam

Nov. 14 (Bloomberg) — Canadian stocks rose to a two-week high, as precious metals producers rallied after U.S. labor data and comments from U.S. Federal Reserve Chairman nominee Janet Yellen signaled further stimulus.

B2Gold Corp. climbed 5.1 percent as the price of the metal halted a five-day losing streak. Pan American Silver Corp. jumped 7.8 percent as silver rallied. CGI Group Inc., the company that has come under scrutiny for its work on the Obamacare health exchange, surged 4.3 percent after reporting fourth-quarter earnings that topped estimates.

The Standard & Poor’s/TSX Composite Index climbed 60.72 points, or 0.5 percent, to 13,431.38 at 4 p.m. in Toronto, the highest since Oct. 30. The benchmark Canadian equity gauge has advanced 8 percent this year, the third-worst performance among global developed markets, ahead of Hong Kong and Singapore.

“It’s a green light, as that was the biggest fear, that the Fed would take away the punch bowl,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. The firm manages about C$4 billion ($3.8 billion).

“Definitely, the testimony is positive for the markets. She does have to contend with some hawks, and we’ll see whether she’s a compromiser, but right now it looks like no tapering until March.”

The U.S. economy and the job market are performing “far short of their potential” and a strong recovery will ultimately enable the Fed to reduce its stimulus, Yellen said in testimony at her nomination hearing today.

Investors have been watching for signals on whether the Fed will taper its $85 billion a month in bond purchases. The stimulus has fueled a rally in equities this year.

Raw-materials stocks rallied 1 percent to pace gains in the S&P/TSX, as eight of 10 industries advanced. Trading volume was 11 percent higher than the 30-day average.

B2Gold gained 5.1 percent to C$2.46 and Agnico Eagle Mines Ltd. increased 4.5 percent to C$30.74. Gold surged 1.4 percent to settle at $1,286.30 an ounce in New York, halting a five-day slump that was its longest since August. The S&P/TSX Gold Index climbed 2 percent as 22 of 24 members advanced.

Pan American Silver jumped 7.8 percent to C$11.59 and Silvercorp Metals Inc. added 3.5 percent to C$2.99 as silver futures for December delivery increased 1.4 percent.

CGI Group climbed 4.3 percent to C$39.24, a record high after rising for a ninth time in 10 sessions. The company’s merger with Logica Plc and the resulting contracts have fueled profit and sales. Its contract developing the U.S. federal government’s health-insurance exchange is a small part of CGI’s revenue.

Linamar Corp. soared 14 percent to a record C$40.72 for the biggest gain in the S&P/TSX. The Guelph, Ontario-based auto parts maker reported third-quarter adjusted profit of 80 Canadian cents a share, topping analysts’ projections for 66 cents.

Tourmaline Oil Corp. increased 5.4 percent to C$42.62 and Canadian Natural Resources Ltd. rose 2.6 percent to C$33.11 as crude fluctuated after touching a five-month low in New York.

Encana Corp. climbed 2.3 percent to C$19.02 to snap a three-day slide.

Turquoise Hill Resources Ltd. slumped 7.8 percent to C$4.27, for a sixth day of declines. The miner disclosed it was unable to obtain project financing for its Oyu Tolgoi copper project in Mongolia. Potential investors balked at uncertainty over when the company will be able to resolve “issues” with the government.

US

By Aubrey Pringle

Nov. 14 (Bloomberg) — U.S. stocks rose, extending records for benchmark indexes, as comments from Janet Yellen signaled she will continue the Federal Reserve’s stimulus efforts.

PulteGroup Inc. jumped 4.9 percent as homebuilders surged.

Office Depot Inc. gained 4.5 percent after Bank of America Corp. recommended investors buy the stock. Cisco tumbled 11 percent, leading a decline among technology shares, after its profit forecast missed projections. Kohl’s Corp. dropped 8.1 percent after the retailer cut its forecast.

The Standard & Poor’s 500 Index rose 0.5 percent to a record 1,790.62 at 4 p.m. in New York. The Dow Jones Industrial Average increased 54.59 points, or 0.4 percent, to 15,876.22, also a record. The Nasdaq Composite Index added 0.2 percent to the highest level since September 2000. About 6 billion shares changed hands on U.S. exchanges today, in line with the three- month average.

“Clearly Yellen’s speech is really what’s driving the markets,” Joseph Tanious, a New York-based global market strategist for J.P. Morgan Asset Management, which oversees about $1.5 trillion, said by phone. “Hearing her comments, it reaffirms everyone’s belief that Yellen is unlikely to pull the plug on QE, at least in the next couple months. Investors are feeling a bit more comfortable.”

Yellen, nominated to be the next chairman of the Federal Reserve, said the central bank should take care not to withdraw stimulus, known as quantitative easing, too early from an economy that is operating well below potential.

“It’s important not to remove support, especially when the recovery is fragile and the tools available to monetary policy, should the economy falter, are limited given that short-term interest rates are at zero,” she said in testimony to the Senate Banking Committee in Washington today.

Central bank policy makers will probably pare the $85 billion monthly pace of bond buying to $70 billion at their March 18-19 meeting, according to the median of 32 estimates in a Bloomberg survey of economists on Nov. 8. The group next meets Dec. 17-18.

Fed support has helped propel the S&P 500 to a 165 percent gain from its March 2009 low. The gauge has rallied 26 percent in 2013, on course for its best year in a decade, and is trading at 16.2 times projected earnings, more than the five-year average of 14 times profit, data compiled by Bloomberg show.

Yellen added that she sees no evidence of an asset-price bubble in the stock market. “Stock prices have risen pretty robustly, but if you look at traditional measures,” such as price-earnings ratios, “you would not see stock prices in territory that suggests bubble-like conditions,” she said.

Abby Joseph Cohen, a senior investment strategist at Goldman Sachs Group Inc., said value remains in the U.S. stock market, pointing to price-earnings ratios that are lower now than the last time stocks were near these levels.

“Companies right now are increasingly enthusiastic about the dynamism in the economy,” Cohen said in a Bloomberg Radio interview with Tom Keene yesterday. “There’s value in the market right now. The U.S. economy will likely grow faster next year.”

Data today showed jobless claims in the week ended Nov. 9 declined 2,000 to 339,000 from a revised 341,000 the week before that was higher than initially reported. The median forecast of 51 economists surveyed by Bloomberg called for a drop to 330,000.

Fed Bank of Philadelphia President Charles Plosser, an opponent of Fed bond purchases, said the central bank should focus on price stability as its primary objective, and not worry as much about “fluctuations” in employment.

Of the 462 S&P 500 companies that have announced earnings so far, 75 percent have topped analysts’ income forecasts, data compiled by Bloomberg showed. Profits for the gauge increased 4.7 percent in the third quarter and will gain 6.2 percent in the final three months of the year, estimates compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index, which measures future volatility signaled by S&P 500 options, fell 1.2 percent to 12.37. The gauge has tumbled 31 percent this year.

Nine of 10 main S&P 500 groups advanced. Utilities stocks increased 0.9 percent for the best performance among the industries.

The S&P Supercomposite Homebuilding Index gained 3 percent as all 11 members advanced. PulteGroup jumped 4.9 percent to $17.86 and Lennar Corp. climbed 2.7 percent to $34.22. D.R. Horton Inc. added 2.8 percent to $19.59.

Office Depot rose 4.5 percent to $5.62. Bank of America raised its rating on the stock to buy from underperform, similar to a sell recommendation, citing potential cost savings following its merger with OfficeMax Inc. and the appointment of Roland Smith as chief executive officer. The shares are up 12 percent for the week.

Tyco International Ltd. rose 2.4 percent to $37.60, its highest price since 2002. The fire detector and security company reported quarterly revenue that beat estimates.

Western Digital Corp. climbed 4.7 percent to a record $75.85 after the company late yesterday said it would pay a quarterly dividend of 30 cents a share. Western Digital had paid 25 cents a share for the previous five quarters.

Eli Lilly & Co., the biggest U.S. maker of insulin products, rose 1 percent to $51.03. The company said it will pour another $700 million into manufacturing capacity, more than tripling its investment in the expanding market for diabetes treatments.

Cisco, the world’s largest maker of computer-networking equipment, tumbled 11 percent to $21.37 after giving quarterly profit and sales forecasts that missed analysts’ estimates.

Chief Executive Officer John Chambers has cut prices to bolster sales of switches and routers, seeking to fend off competition from Huawei Technologies Co., Juniper Networks Inc. and Hewlett-Packard Co. Sales in developing regions were less than anticipated, and there was a “lack of confidence among business leaders” because of the outlook for the economy, as well as the shutdown of the U.S. government in October, Chambers said on a conference call.

Technology shares had the only decline among S&P 500 groups, with Hewlett-Packard losing 5.4 percent to $25.07 and Citrix Systems Inc. falling 5.3 percent to $54.96. Xilinx Inc. and Jabil Circuit Inc. retreated at least 3.9 percent.

Kohl’s plunged 8.1 percent to $53.55 for its biggest decline in almost a year. The retailer reported third-quarter earnings that missed analyst estimates and trimmed its full-year outlook.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“The value of experience is not in seeing much, but in seeing wisely.”
William Osler

As ever,

 

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Dear Friends,

Tangents:

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

This past weekend, I travelled up to Parksville for a quick weekend getaway!  We stayed at Tigh-na-Mara Resort and at The Beach Club Resort; both beautiful places to stay!  The main attraction of Tigh-Na-Mara was definitely their spa. The Grotto Spa is the number 1 spa in Western Canada and after being there for the weekend, I can definitely see why.  With various relaxation packages, they also have a beautiful 2,500 square foot mineral pool that is designed to emulate a natural stone grotto and is infused with natural minerals and trace elements that help detoxify the body.  This was definitely the highlight in which I recommend.  The Beach Club Resort was equally as beautiful with more modernized rooms; whereas Tigh-Na-Mara was more of a cottage feeling. I encourage you all to check out both of these resorts next time you head up island!

Mineral Pool @ The Grotto Spa

“Old friends pass away, new friends appear. It is just like the days. An old day passes, a new day arrives. The important thing is to make it meaningful: a meaningful friend – or a meaningful day.”

Dalai Lama

Photos of the Day:

Malaysian air force personnel load relief supplies donated by the Malaysian government for victims of Typhoon Haiyan in the Philippines, at the Air Force base in Subang, Malaysia. Foreign governments and agencies have announced a major relief effort to help victims of the Philippine typhoon.

Gondoliers row in an empty Grand Canal in Venice, Italy. Drivers of taxi boats and shipping boats declared a strike against a new law regulating traffic on the Grand Canal, according to local media. Manuel Silvestri/Reuters

Market Closes for November 13^th, 2013

Market  Index	Close	Change
Dow  Jones	15821.63	+70.96    +0.45%
S&P 500	1782.00	+14.31    +0.81%
NASDAQ	3965.575	+45.655    +1.16%
TSX	13370.66	+44.62
		+0.33%

International Markets

Market  Index	Close	Change
NIKKEI	14567.16	-21.52
		-0.15%
HANG  SENG	22463.83	-437.58
		-1.91%
SENSEX	20194.40	-87.51
		-0.43%
FTSE 100	6630.00	-96.79
		-1.44%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.598	2.648
CND.   30 Year Bond	3.151	3.194
U.S.   10 Year Bond	2.7162	2.7701
U.S.   30 Year Bond	3.8272	3.8536

Currencies

BOC Close	Today	Previous
Canadian $	0.95667	0.95299
US   $	1.04529	1.04932
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40985	0.70929
US  $	1.34876	0.74142

Commodities

Gold	Close	Previous
London Gold   Fix	1275.79	1268.63
Oil	Close	Previous
WTI Crude Future	93.88	93.27
BRENT	109.360	109.360

Market Commentary:

Canada

By Eric Lam

Nov. 13 (Bloomberg) — Canadian stocks rose, halting two days of losses, as gains among lenders and energy producers overshadowed disappointing retailer results while investors weighed the timing of any Federal Reserve stimulus cuts.

Semafo Inc. rallied 8.9 percent after the miner said it received approval to develop two new deposits. Royal Bank of Canada climbed 1.7 percent to pace gains among financial stocks.

Suncor Energy Inc. added 2 percent as crude prices climbed.

Grocery retailers Loblaw Cos. and Metro Inc. tumbled at least 5.7 percent on disappointing earnings. CAE Inc. dropped 0.6 percent as the aviation training company faced declining revenue in its civil and military segments.

The Standard & Poor’s/TSX Composite Index rose 44.62 points, or 0.3 percent, to 13,370.66 at 4 p.m. in Toronto, after declining as much as 0.3 percent earlier. The benchmark Canadian equity gauge has advanced 7.5 percent this year, the third-worst performance among global developed markets, ahead of Hong Kong and Singapore.

“One of the main drivers around the market performance is the comments from the Fed,” said Anish Chopra, fund manager with TD Asset Management Inc. in Toronto. He helps manage C$216 billion ($206 billion) with the firm. “There’s always some uncertainty around tapering, but it looks like tapering could be earlier.”

Fed Bank of Atlanta President Dennis Lockhart said yesterday a paring of U.S. bond purchases “could very well take place” next month. Investors have been watching for clues on when the central bank will begin to reduce monetary support as the economy recovers. The stimulus has helped fuel a global rally in equities.

Eight of 10 groups in the benchmark Canadian index advanced today, with energy and financial shares adding at last 0.5 percent. Trading volume was 7.5 percent above the 30-day average at this time of the day.

Royal Bank rose 1.7 percent to C$71.06, a record close, on trading volume more than four times higher than the three-month average. Bank of Montreal gained 0.9 percent to C$73.44.

Suncor Energy added 2 percent to C$37.23, halting two days of declines. Oil rose 0.9 percent in New York on speculation that increasing refinery profits from making gasoline and heating oil will bolster use of the raw material.

Semafo surged 8.9 percent to C$2.95 for the biggest gain in the S&P/TSX. The company’s chief executive officer said today it would start production at one of the developments in 2014 and in 2015 at the other.

Loblaw sank 7.6 percent to C$44.23, the biggest slide in six years. The nation’s largest grocer now forecasts operating income for 2013 to be flat compared with 2012, due to higher spending amid increasing competition.

Metro retreated 5.7 percent to C$62, the most since November 2008. Revenue of C$2.61 billion fell short of analysts’ estimates of C$2.63 billion and same-store sales slid 1.8 percent.

Canadian grocers are under pressure as bigger U.S. rivals such as Target Corp. and Wal-Mart Stores Inc. expand grocery options in the country.

CAE, the St. Laurent, Quebec-based flight simulator and training company, fell 0.6 percent to C$11.96, paring earlier losses, after reporting second-quarter revenue of C$487.5 million, short of analysts’ estimates of C$536.5 million.

The company also increased its dividend 20 percent, to 6 Canadian cents a share from 5 cents.

First Quantum Minerals Ltd., a copper miner, declined 4.3 percent to C$18.56 as the price of the metal fell the most in 15 weeks. Copper output in China rose to a monthly record in October.

NuVista Energy Ltd. decreased 3.7 percent to C$7.05. The Calgary-based energy company yesterday said it will sell 11 million shares at C$7.10 a share to raise about C$78.1 million. It plans to use the cash to pay down debt and help fund its 2013 and 2014 capital program.

US

By Aubrey Pringle

Nov. 13 (Bloomberg) — U.S. stocks rose, sending benchmark indexes to records, as Macy’s Inc. led a rally among retailers and investors speculated the Federal Reserve’s Janet Yellen will continue the central bank’s stimulus policy as chairman.

Macy’s jumped 9.4 percent as better-than-estimated earnings fueled optimism about the holiday shopping season. Tesla Motors Inc. advanced 0.7 percent as co-founder Elon Musk said the company won’t recall its Model S after fires involving the electric sedan. Cisco Systems Inc. dropped 7 percent after the market close as revenue fell short of forecasts.

The S&P 500 gained 0.8 percent to 1,782 at 4 p.m. in New York, surpassing a previous high set on Oct. 29. The Dow Jones Industrial Average rose 70.96 points, or 0.5 percent, to a record 15,821.63. About 6 billion shares changed hands on U.S. exchanges today, in line with the three-month average.

“Macy’s and retail in general has pulled up the overall market,” Tim Ghriskey, who helps manage more than $1.5 billion as chief investment officer of Solaris Asset Management LLC, said by phone. “Expectations were very low for the holiday season, and perhaps now they’ve been raised a bit. The backdrop around stocks remains favorable, and the market is anticipating economic improvement, which will drive revenue and earnings.”

Investors have been weighing better-than-projected earnings and data to gauge whether the economy may be strong enough to withstand less stimulus from the central bank. This week will bring reports on U.S. jobless-benefit claims and manufacturing in the New York area.

Yellen, nominated to be the next chairman of the Fed, said the economy and labor market are performing “far short of their potential” and must improve before the central bank can begin reducing monetary stimulus.

“A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases,” Yellen, the Fed’s current vice chairman, said in testimony prepared for her nomination hearing tomorrow before the Senate Banking Committee.

“I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.”

The remarks show Yellen is committed to the central bank’s strategy of attempting to boost the economy and lower 7.3 percent unemployment, more than four years after the economy began to recover from the longest and deepest recession since the Great Depression.

Central bank policy makers will probably scale back the monthly pace of bond buying at their March 18-19 meeting, according to the median of 32 estimates in a Bloomberg survey of economists on Nov. 8. Reducing bond purchases “ought to be on the table at upcoming meetings” by the Federal Open Market Committee, including Dec. 17-18, Fed Bank of Atlanta President Dennis Lockhart said yesterday.

In the U.K., Bank of England Governor Mark Carney signaled that officials may consider raising interest rates sooner than they previously forecast as the U.K. economy recovers “robustly” and inflation slows. The jobless rate as measured by International Labour Organisation standards declined to 7.6 percent in the third quarter, the lowest since 2009, the Office for National Statistics said today.

The S&P 500 has climbed to record levels this year as the Fed maintained its $85 billion in monthly asset purchases.

Central bank support has helped propel the index higher by more than 160 percent from its March 2009 low. The gauge has rallied 25 percent so far in 2013, poised for its best year in a decade, and is trading at 16 times projected earnings, more than the five-year average of 14 times profit, according to data compiled by Bloomberg.

Pessimism about U.S. stocks among newsletter writers is at the lowest level in at least 24 years. The percentage of newsletter writers classified as bears by Investors Intelligence dropped to 15.5 percent from 15.6 percent last week, the least since Bloomberg began tracking the data in February 1989.

Optimistic, or bullish, newsletter writers dropped to 52.6 percent from a seven-month high of 55.2 percent last week.

Macy’s, NetApp Inc. and Cisco Systems Inc. reported results today. Of the 455 S&P 500 companies that have announced so far, 75 percent have beaten analysts’ income forecasts, data compiled by Bloomberg showed. Profits for the gauge will rise 4.7 percent in the third quarter and 6.2 percent in the final three months of the year, estimates compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index, which measures future volatility signaled by S&P 500 options, fell 2.3 percent to 12.52. The gauge has tumbled more than 31 percent this year.

Nine of 10 main S&P 500 groups advanced. Consumer discretionary stocks gained 1.6 percent for the best performance among the industries.

Macy’s jumped 9.4 percent to a record $50.68. The second- largest U.S. department-store company reported third-quarter earnings that beat analysts’ estimates as better local selections boosted sales, signaling stronger demand headed into the holidays.

Gap Inc. increased 1.2 percent to $41.36 while L Brands Inc. added 1.9 percent to $64.25. Ralph Lauren Corp. and Abercrombie & Fitch Co. gained at least 2.7 percent.

“People are starting to think about the implications of a positive holiday season,” Walter Todd, chief investment officer at Greenwood Capital Associates LLC, said in phone interview.

“Retail for a while had been underperforming, but just the past couple weeks we’ve gotten some positive data points from Gap, Limited Brands and now from Macy’s.”

Technology companies added 1 percent as Microsoft Corp. rose 2.1 percent to $38.16.

Tesla added 0.7 percent to $138.70. The stock tumbled 29 percent from Sept. 30 through yesterday amid several reports of battery-related fires in Model S cars, and as the Palo Alto, California-based company posted third-quarter results that disappointed some investors.

“We’re about five times less likely to have a fire than an average gasoline car,” Elon Musk, chief executive officer of the company and its biggest shareholder, said yesterday at a conference in New York. Reaction to the fires reported by some media was “extremely inaccurate and unreasonable,” Musk said.

General Motors Co. jumped 4.9 percent to $38.44 after the Detroit-based carmaker that counts China as its biggest market said it will open a new headquarters in Singapore to oversee markets including Southeast Asia and India.

Crocs Inc. surged 9.8 percent to $13.89, for its biggest gain since July 2012. The shoemaker known for its brightly colored clogs is considering its strategic options after talks to take the company private stalled, people with knowledge of the matter said.

The company held talks with private-equity firms including Blackstone Group LP and KKR & Co., two people said, asking not to be identified because the information is private. The chance of a deal is slim because of a gap in price expectations, said one of the people.

Office Depot Inc., which completed a merger with OfficeMax Inc. last week, rose 3.3 percent to $5.38. The company named Roland Smith as chief executive officer and chairman of the newly formed office-supply chain.

Cisco Systems dropped 7 percent to $22.32 as of 5:01 p.m.

After the close of regular trading, the company reported quarterly sales that fell short of analysts’ estimates amid a slowdown in government spending and increased competition for sales of low-cost networking equipment. Cisco’s board also authorized $15 billion in additional stock buybacks.

Nucor Corp. fell 2.6 percent to $52.39 in regular trading after Morgan Stanley analyst Evan Kurtz downgraded the steel producer’s stock. Kurtz upgraded his rating and raised the price target for U.S. Steel Corp., saying new management is taking a “serious and transformational approach.” U.S. Steel rose 2.2 percent to $27.60.

 

Have a wonderful evening everyone!!

 

Be magnificent!

 

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

As ever,

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Dear Friends,

Tangents:

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

11/12/13, marks the second to last sequential number for calendar dates, with the last one being 12/13/14.  Aziz Inan, professor of electrical engineering at the University of Portland says that sequential dates are rare.  Each century contains 12 sequential calendar dates, with the first being 01/02/03 and the last one 12/13/14.  December 13^th, 2014 will mark the last sequential calendar date in the 21^st century.  Here’s a couple interesting facts to leave you with:

1. It is the 316th day of the year in the Gregorian calendar. There are 49 days remaining until the end of the year.

2. David’s Bridal estimates that more than 3,000 couples will get married on 11/12/13; compared to Nov. 11 of last year, that’s a 722 percent increase.

“Health is the greatest gift, contentment the greatest wealth, faithfulness the best relationship.” Buddha

Photos of the Day:

Students from the Brazilian Santa Claus school throw their hats into the air, during their graduation ceremony in Rio de Janeiro. The school provides lessons in Santa-training, teaching Christmas carols, how to interact with children, and also how to wear the heavy red suit in Rio’s typical 104-degree F. summer weather. Pilar Olivares/Reuters

Mylene Paquette of Canada celebrates as she arrives at Lorient harbor, France. Paquette reached Brittany after more than 140 days at sea, to become the first North American woman to row solo across the Atlantic. Stephane Mahe

Market Closes for November 12^th, 2013

Market  Index	Close	Change
Dow  Jones	15750.67	-32.43    -0.21%
S&P 500	1767.02	-4.87    -0.27%
NASDAQ	3919.920	+0.131    ——
TSX	13329.86	-28.53
		-0.21%

International Markets

Market  Index	Close	Change
NIKKEI	14588.68	+318.84
		+2.23%
HANG  SENG	22901.41	-168.44
		-0.73%
SENSEX	20281.91	-209.05
		-1.02%
FTSE 100	6726.79	-1.58
		-0.02%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.648	2.604
CND.   30 Year Bond	3.194	3.164
U.S.   10 Year Bond	2.7701	2.7477
U.S.   30 Year Bond	3.8536	3.8481

Currencies

BOC Close	Today	Previous
Canadian $	0.95299	0.95438
US   $	1.04932	1.04780
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40983	0.70931
US  $	1.34356	0.74429

Commodities

Gold	Close	Previous
London Gold   Fix	1268.63	1288.32
Oil	Close	Previous
WTI Crude Future	93.27	94.60
BRENT	109.360	109.360

Market Commentary:

Canada

By Eric Lam

Nov. 12 (Bloomberg) — Canadian stocks fell a second day as raw-material and energy producers slumped after copper dropped and crude prices tumbled to a five-month low.

BlackPearl Resources Inc. and Legacy Oil & Gas Inc. lost at least 1 percent as the price of crude declined for the first time in three days on rising U.S. inventory forecasts. Air Canada, the best-performing Canadian stock this year, climbed 4.6 percent for a fourth day of gains. Teck Resources Ltd. and Lundin Mining Corp. dropped more than 2.6 percent as copper prices slid.

The Standard & Poor’s/TSX Composite Index fell 32.35 points, or 0.2 percent, to 13,326.04 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 7.2 percent this year, the third-worst performance among global developed markets, ahead of Hong Kong and Singapore.

“People are staying away from taking drastic positions before the year-end,” said Brian Huen, managing partner with Red Sky Capital Management Ltd. in Toronto. The firm manages about C$220 million. “There’s a lot of different views developing on what tapering will look like from the Fed, so more people are talking about tapering in December. A lot of people are clearly watching for that.”

Global equities have rallied this year as the U.S. Federal Reserve refrained from curbing its $85 billion in monthly asset purchases. Economists forecast the central bank will delay tapering its asset purchases until March.

Bonterra Energy Corp. lost 3.6 percent to C$54.95, the most since April, after the company reported third-quarter production declined 6.6 percent compared with the previous quarter.

BlackPearl Resources lost 1 percent to C$1.91 and Legacy Oil & Gas retreated 3.4 percent to C$6.53 as crude for December delivery declined 2.2 percent to $93.04 in New York, the lowest since May 31.

Bombardier Inc., the world’s third-largest planemaker, dropped 2.4 percent to C$4.53 for a second day of losses. The stock sank 10 percent on Oct. 31 for the biggest decline in more than four years after posting a quarterly profit that missed analysts’ estimates.

Wi-Lan Inc. rose 3 percent to C$3.44 and CGI Group Inc. added 2.7 percent to C$37.11 as technology stocks added 1.1 percent as a group in the S&P/TSX.

Six of 10 industries advanced in the benchmark Canadian equity gauge on trading volume in line with the 30-day average.

National Bank of Canada added 1.1 percent to C$92.52, a record high, to pace gains among Canada’s largest lenders.

Air Canada, the nation’s largest airline, increased 4.6 percent to C$6.90, extending a five-year high. The stock has surged 27 percent in the past four days. The carrier reported third-quarter profit on Nov. 8 that beat analysts’ estimates amid progress in its cost-cutting plan.

Air Canada is the top-performing stock in the S&P/TSX this year with a 294 percent gain.

Teck Resources, the nation’s largest diversified miner, dropped 2.6 percent to C$27.34 and Lundin Mining retreated 2.8 percent to C$4.58 as copper fell in New York. Output in China, the world’s largest user of the metal, increased 23 percent in October to a monthly record.

US

By Aubrey Pringle

Nov. 12 (Bloomberg) — U.S. stocks fell, with the Dow Jones Industrial Average retreating from a record, as corporate earnings and an improving economy fueled speculation the Federal Reserve will reduce stimulus next month.

NRG Energy Inc. slipped 3.5 percent after the power generator lowered its 2013 adjusted earnings target. News Corp. dropped 1.6 percent as the publisher of the Wall Street Journal reported a decline in revenue. Dish Network Corp. rose 6 percent as the second-largest U.S. satellite-television provider’s earnings exceeded estimates.

The Standard & Poor’s 500 Index fell 0.2 percent to 1,767.69 at 4 p.m. in New York, after closing yesterday within a point of its all-time high. The Dow lost 32.43 points, or 0.2 percent, to 15,750.67. About 5.9 billion shares changed hands on U.S. exchanges today, 2.9 percent below the three-month average.

“The jobs report Friday, that’s really what changed the idea that we could have a December taper, and ever since then you’ve had more and more comments coming out of the Fed that perhaps it is on the table,” James Paulsen, the Minneapolis- based chief investment strategist at Wells Capital Management, which oversees about $340 billion, said in a phone interview.

“Last night it was Fisher and now Lockhart. What he came out and said today isn’t earth-shattering but it does add to the momentum to the idea.”

The S&P 500 and the Dow Jones Industrial Average have touched records this quarter as the Fed refrained from curbing its $85 billion in monthly asset purchases, while better-than- forecast data and corporate earnings indicate the economy may be strong enough to withstand less stimulus.

“Some discussion of tapering could well take place” next month, Fed Bank of Atlanta President Dennis Lockhart said today in a Bloomberg Radio interview with Kathleen Hays. Dallas Fed President Richard Fisher said in a speech in Melbourne today that monetary accommodation “becomes riskier by the day.”

Economists forecast the central bank will delay tapering asset purchases until the March 18-19 meeting. Policy makers will probably pare the monthly pace of bond buying to $70 billion at that time, according to the median of 32 estimates in a Bloomberg survey Nov. 8. The group next meets Dec. 17-18.

Investors will scrutinize economic reports this week on jobless-benefit claims and manufacturing in the New York area.

Data last week showed the U.S. economy grew faster than forecast in the third quarter and hiring rose more than estimated in October. There was no data yesterday and the U.S. Treasury markets were closed for the Veterans Day holiday.

The market may get some insight into Fed thinking when Vice Chairman Janet Yellen testifies before the Senate Banking Committee Nov. 14 during her confirmation hearing to succeed Ben S. Bernanke as chairman.

The Fed support has helped propel the S&P 500 higher by more than 160 percent from its March 2009 low. The gauge has rallied 24 percent so far in 2013, poised for its best year in a decade, and is trading at 16 times projected earnings, more than the five-year average of 14 times earnings, according to data compiled by Bloomberg.

“A lot of U.S. financial firms will start to close their books for the year now after this decent performance,” said Ioan Smith, a market strategist at KCG Europe Ltd. in London.

“If you’ve had good returns and you outperformed, how much more are you going to get this year? There is a big argument to lock in what gains you’ve got given the risk-reward is not conducive of any significant gains from these levels.”

Some 13 members of the S&P 500 reported earnings today.

Seventy-four percent of the 450 companies that have released results so far have beaten analysts’ estimates, according to data compiled by Bloomberg.

“It was a good earnings season, it definitely helped the market,” Richard Sichel, chief investment officer at Philadelphia Trust Co., said by phone. He helps oversee $1.9 billion.

The Chicago Board Options Exchange Volatility Index, which measures future volatility signaled by S&P 500 options, rose 2.3 percent to 12.82.

Six of 10 main S&P 500 groups retreated, with utility and financial stocks sliding at least 0.9 percent to pace losses.

Travelers Cos. dropped 1.7 percent to $86.44 for the steepest slide in the Dow.

NRG fell 3.5 to $27.06, the lowest in two months. The power generator lowered the upper end of its 2013 adjusted earnings range and cut its 2014 target.

Energy companies retreated 0.9 percent as a group. Cliffs Natural Resources Inc., an iron ore miner, lost 4 percent to $26.27, for the biggest slide in the S&P 500. Peabody Energy Corp., a coal miner, slid 2.9 percent to $20.18.

News Corp. slid 1.6 percent to $17.15 as the publisher reported a 2.8 percent decline in first-quarter revenue, hurt by shrinking demand for print advertising. The news division, which owns papers in the U.S., the U.K. and Australia, saw revenue fall 10 percent to $1.5 billion.

Liberty Global Plc, the European cable operator owned by John Malone, fell 1.1 percent to $78.58. The company is in talks to acquire Intel Corp.’s online pay-TV service under development, according to three people with knowledge of the situation. Malone would use Intel’s system outside the U.S., said one of the people, who asked not to be identified because the talks are private.

Dean Foods Co. fell 7.7 percent to $18.20 after the company lowered its full year earnings forecast. Dallas-based Dean said dairy commodity prices remain high, creating a more challenging environment than previously thought. The milk producer also said it will start paying a dividend of 7 cents in the first quarter.

Hologic Inc. sank 10 percent to $20.51, the biggest drop since May 2010. The X-ray company’s 2014 forecasts for sales and adjusted revenues fell short of analysts’ estimates as the company sees “headwinds.” At least four research firms cut Hologic’s stock to the equivalent of a hold rating.

Sarepta Therapeutics Inc. plunged 64 percent to $13.16, the lowest since September 2012. U.S. regulators indicated more data may be needed before the company files a new drug application for its experimental treatment for Duchenne muscular dystrophy.

Sarepta has no products on the market. The stock had climbed 42 percent this year through yesterday.

Xerox Corp. rose 4 percent to $10.69 for its largest increase in a month. The printer and photocopier pioneer predicted that 2014 earnings may grow more than analysts estimate, as business services account for a bigger chunk of its revenue.

Dish Network climbed 6 percent to $50.35, the highest since May 2000. The satellite-television provider reported third- quarter profit that exceeded estimates after luring more customers away from cable companies. Chairman Charlie Ergen, who made a failed attempt to acquire Sprint Corp. earlier this year, said buying Sprint’s smaller rival T-Mobile US Inc. isn’t “off the table.”

D.R. Horton Inc. gained 4.7 percent to $18.91, the biggest gain in the S&P 500. The largest U.S. homebuilder by revenue reported a higher quarterly profit as it increased prices amid a nationwide housing recovery.

The Bloomberg U.S. Airlines Index added 2.5 percent for the highest close since April 2007. Delta Air Lines Inc. rose 2.4 percent to $28.12. Carriers are benefiting as jet fuel prices retreat from an eight-month high against diesel amid rising output and the lowest seasonal demand in more than two decades.

US Airways Group Inc. added 1.1 percent to $23.52. The carrier and American Airlines reached an agreement with the U.S. Justice Department over the government’s bid to block their merger, clearing the way to a tie-up that would create the world’s biggest carrier.

The airlines must give up slots at Washington Ronald Reagan National Airport and New York’s LaGuardia Airport under a proposed settlement. AMR Corp., American’s parent company that is in bankruptcy, rose 26 percent to $12 in over-the-counter trading.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“We gain strength, and courage, and confidence by each experience in which we really stop to look fear in the face… we must do that which we think we cannot.” – Eleanor Roosevelt

As ever,

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

 

 

 

 

 

 

Dear Friends,

Tangents:

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

Remembrance Day

In Flanders fields the poppies blow
Between the crosses, row on row,
That mark our place: and in the sky
The larks still bravely singing fly
Scarce heard amid the guns below.

We are the dead: Short days ago,
We lived, felt dawn, saw sunset glow,
Loved and were loved: and now we lie
In Flanders fields!

Take up our quarrel with the foe
To you, from failing hands, we throw
The torch: be yours to hold it high
If ye break faith with us who die,
We shall not sleep, though poppies grow
In Flanders fields

“For beautiful eyes, look for the good in others; for beautiful lips, speak only words of kindness; and for poise, walk with the knowledge that you are never alone.”

Audrey Hepburn

Photos of the Day:

The sun casts a shadow and spectral halo effect on clouds as US Secretary of State John Kerry’s aircraft departs Tel Aviv for Geneva. Kerry will meet with Iranian Foreign Minister Mohammad Javad Zarif in Geneva on Friday on the sidelines of the Iranian nuclear talks. Jason Reed/Reuters

The sun rises over the horizon, lighting up the surface of the Tidal Basin near the Jefferson Memorial in Washington at the start of a clear day in the Nation’s Capitol. J. David Ake/AP

Market Closes for November 8^th, 2013

Market  Index	Close	Change
Dow  Jones	15761.78	+167.80    +1.08%
S&P 500	1768.58	+21.43    +1.23%
NASDAQ	3919.233	+61.900    +1.60%
TSX	13388.34	+94.14
		+0.71%

International Markets

Market  Index	Close	Change
NIKKEI	14086.80	-141.64
		-1.00%
HANG  SENG	22744.39	-136.64
		-0.60%
SENSEX	20666.15	-156.62
		-0.75%
FTSE 100	6708.42	+11.20
		+0.17%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.604	2.519
CND.   30 Year Bond	3.164	3.085
U.S.   10 Year Bond	2.7477	2.5999
U.S.   30 Year Bond	3.8481	3.7084

Currencies

BOC Close	Today	Previous
Canadian $	0.95438	0.95652
US   $	1.04780	1.04546
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40069	0.71393
US  $	1.33680	0.74806

Commodities

Gold	Close	Previous
London Gold   Fix	1288.32	1307.55
Oil	Close	Previous
WTI Crude Future	94.60	94.20
BRENT	109.360	109.360

Market Commentary:

Canada

By Eric Lam

Nov. 8 (Bloomberg) — Canadian stocks rose the most in three weeks as Air Canada reported higher-than-estimated earnings and jobs data beat economists’ forecasts.

Air Canada, the nation’s largest airline, surged 7.2 percent after reducing costs. Manulife Financial Corp., Canada’s largest insurer, increased 2.6 percent for a fourth day of gains. Trilogy Energy Corp. plunged 9.8 percent after reporting a loss as sales declined. Detour Gold Corp. plunged 18 percent after saying it will not meet its 2013 production targets.

Centerra Gold Inc. and HudBay Minerals Inc. sank at least 3.7 percent as gold dropped to a three-week low in New York.

The Standard & Poor’s/TSX Composite Index rose 84.13 points, or 0.6 percent, to 13,378.33 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 7.6 percent this year, the third-worst performance among global developed markets, ahead of Hong Kong and Singapore.

“Canada’s job numbers were modestly better than expected, so that’s positive,” said Anish Chopra, a fund manager with TD Asset Management Inc. in Toronto. His firm manages about C$216 billion ($206 billion). “It looks like the U.S. economy, at least by employment, has weathered the shutdown quite well. The reaction gold investors are having is this is another data point the Fed will use for tapering.”

The U.S. added 204,000 workers in October, ahead of the median economists’ forecast of 120,000, according to a Labor Department report today. The Federal Reserve has said improvements in employment figures may prompt a reduction, or tapering, of its stimulus program.

Canada’s jobless rate remained at 6.9 percent, the lowest since 2008, as government workers led the third straight month of job gains. Employment rose by 13,200 in October, compared to a median forecast of 11,000 from a Bloomberg survey of economists.

Air Canada jumped 7.2 percent to C$5.99, the highest close in five years, as nine of 10 industries in the S&P/TSX rose.

Trading volume was 16 percent higher compared with the 30-day average.

Air Canada, the best-performing stock in the S&P/TSX in 2013 with a 242 percent advance, reported adjusted earnings of C$1.29 a share, ahead of the C$1.04 average analyst estimate in a Bloomberg survey. The company is working to reduce costs at the carrier by about 15 percent.

Royal Bank of Canada, the nation’s largest lender, rose 0.7 percent to C$70.31 and Toronto-Dominion Bank, the second- largest, increased 0.8 percent to C$96.96. The S&P/TSX Banks Index climbed 0.6 percent to a record.

Housing starts in Canada jumped to the highest level in five months in October, led by construction of multiple-unit projects such as condominiums.

Manulife climbed 2.6 percent to C$19.72 to pace gains among financial stocks. The company has advanced 6.7 percent in the past four days, and yesterday reported rising profit on higher sales of insurance and savings products.

Trilogy Energy sank 9.8 percent to C$26.76, the biggest drop since 2008 on a closing basis, after reporting a loss of 8 Canadian cents a share, compared with 17 cents of earnings a quarter ago. Sales volumes for the third quarter averaged 31,211 barrels of oil equivalent per day, a 16 percent drop from the previous quarter due to field maintenance.

Detour Gold plunged 18 percent to C$6.35, an almost five- year low. The company said in a statement it will not reach its 2013 production target of 270,000 ounces of gold and now forecasts 240,000 to 260,000 ounces.

Centerra Gold slumped 8.8 percent to C$3.54 and HudBay Minerals tumbled 3.7 percent to C$8.42. Gold futures for December delivery declined 1.8 percent to settle at $1,284.60 an ounce in New York, the lowest since Oct. 16.

US

By Lu Wang and Nick Taborek

Nov. 8 (Bloomberg) — U.S. stocks rose, pushing the Dow Jones Industrial Average to a record close, as a better-than- forecast jobs report added to signs growth is strong enough for the economy to withstand a stimulus reduction.

Priceline.com Inc. advanced 4.9 percent after reporting sales that topped analysts’ estimates and promoting Darren Huston to chief executive officer. Gap Inc. climbed 9.8 percent as its profit forecast beat expectations. Groupon Inc. jumped 6.4 percent after posting a narrower-than-estimated loss and agreeing to buy South Korean deals website Ticket Monster Inc. A jump in bond yields boosted insurers and weighed on homebuilders and dividend stocks.

The Standard & Poor’s 500 advanced 1.3 percent to 1,770.60 at 4 p.m. in New York, within two points of its all-time high.

The Dow Jones Industrial Average jumped 167.80 points, or 1.1 percent, to a record 15,761.78, capping its fifth week of gains in a row. About 7 billion shares changed hands on U.S. exchanges today, 15 percent above the three-month average.

“This is good news, this is what we’ve been looking for,” Erik Davidson, the San Francisco-based deputy chief investment officer for Wells Fargo Private Bank, which oversees $170 billion, said by phone. “The one thing that people have been waiting to see is an inflection point in terms of jobs and we’re starting to see that, which is great news.”

The S&P 500 dropped 1.3 percent yesterday as data showing faster-than-expected economic growth fueled speculation that the Fed may scale back stimulus soon. Equities rebounded today as the labor report added to evidence that growth in the world’s largest economy is strengthening.

American employers added 204,000 workers after a revised 163,000 gain in September that was larger than previously estimated, Labor Department figures showed today in Washington.

The increase in payrolls topped the most optimistic forecast in a survey of economists.

The benchmark equity gauge added 0.5 percent in the past five days for a fifth straight week of gains, the longest streak since February. The index has rallied 24 percent in 2013, heading for the best annual gain in a decade, as the central bank kept interest rates low to spur economic growth.

The Fed said last week it needs to see more evidence of sustained improvement before slowing its $85 billion monthly asset purchases. Economists predict the Fed will maintain bond purchases at the current pace until March, according to a Bloomberg survey conducted Oct. 17-18. Policy makers next meet on Dec. 17-18.

“The market is trying to deal with an improvement in the economy that may be offset by higher interest rates,” Greg Woodard, a strategist in Fairport, New York, at Manning & Napier Inc., which has $49.1 billion under management, said in a phone interview. “You see a pullback in some areas of the market that are most sensitive to higher interest rates.”

Benchmark 10-year yields reached the highest level in more than three weeks as the jobs data boosted bets that the Fed may begin paring its stimulus program at its December meeting.

Three rounds of monetary stimulus from the central bank and better-than-expected earnings have driven the S&P 500 up 162 percent from a 12-year low in 2009.

Among 449 S&P 500 companies that have announced results during the earnings season, 75 percent beat analysts’ estimates for profits, data compiled by Bloomberg show. Growth in fourth- quarter earnings will accelerate to 6.2 percent from 4.7 percent in the previous three months, analysts’ projections show.

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options known as the VIX, slipped 7.3 percent to 12.90. The measure dropped 2.9 percent in the past five days, halting a two-week winning streak.

Eight out of 10 S&P 500 industry groups rose as financial stocks surged 2.3 percent to lead gains. JPMorgan Chase & Co. rallied 4.5 percent to $53.96 for its fastest rise in a year and the biggest increase in the Dow.

Materials and consumer-discretionary companies rallied at least 1.2 percent as a group.

Priceline.com, the largest U.S. online travel agent, gained 4.9 percent to $1,073.20. Third-quarter sales rose 33 percent to $2.27 billion, topping analysts’ average estimate of $2.22 billion, according to data compiled by Bloomberg. Huston, head of Priceline’s Booking.com unit, will take the helm and join the board, ending Jeffery Boyd’s 11-year reign that saw the stock jump 100-fold.

Gap jumped 9.8 percent, the biggest gain since August 2012, to $41.43. The largest U.S. specialty-apparel retailer said it anticipates quarterly profit that surpassed analysts’ estimates, helped by gains in sales.

Groupon added 6.4 percent to $10.11. The e-commerce company reported a third-quarter net loss of $2.58 million, compared with the average $14.3 million loss predicted by analysts. The Chicago-based company also agreed to buy Ticket Monster for $260 million in cash and stock, transforming itself into a service offering thousands of discounts instead of daily deals.

Walt Disney Co. rallied 2.1 percent to $68.58. The world’s largest entertainment company said fiscal fourth-quarter profit rose 12 percent, beating analysts’ estimates as the company’s theme parks and consumer products boosted income.

Nvidia Corp. increased 7 percent to $15.56. The maker of graphics processors reported fiscal third-quarter profit that exceeded analysts’ estimates as revenue from new businesses helped make up for declining personal-computer demand.

MetLife Inc. rallied 5.4 percent to $50.14, the most since August, and Lincoln National Corp. jumped 5.7 percent to $48.76, leading gains among insurers. The firms invest funds from clients in bonds and other assets to back future payouts.

An S&P index of homebuilders slumped 2.7 percent amid concern rising borrowing costs may derail a housing recovery.

All but 10 members of the gauge retreated. Lennar Corp. dropped 4.2 percent to $32.79 while PulteGroup Inc. sank 3.8 percent to $16.85 for the two biggest declines in the S&P 500.

Utility and telephone shares, which offer the highest dividend yield among 10 S&P 500 main industries, were the only groups to decline, as rising bond yields threaten to undermine the demand for equity income. Utilities pay an average 4 percent of their stock prices as dividend while phone companies offer a yield of 4.7 percent.

Twitter Inc. slid 7.2 percent to $41.65 on the second day of trading. The microblogging service surged 73 percent in yesterday’s debut, the biggest day-one jump for an initial public offering of more than $1 billion since 2007, according to data compiled by Bloomberg.

 

Have a wonderful long weekend everyone!!

 

Be magnificent!

 

“I am determined to be cheerful and happy in whatever situation I may find myself. For I have learned that the greater part of our misery or unhappiness is determined not by our circumstance but by our disposition.”
Martha Washington

As ever,

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

Dear Friends,

Tangents:

November 7^th, 1917: Russian Revolution; Bolsheviks depose Czar Nicholas II.

AUTUMN

So Autumn’s not the end, not the last rung

Of any ladder in the yearly climb,

When that is deathly old which once was young,

Since time’s no ladder but a constant wheel

Like an old paddled mill that dips and churns

The mill-race, and upon the summit turns

Unceasingly to heel

Over, and scoop fresh water out of time.

-Vita Sackville-West

Photos of the day

A church overlooks a fog covered Inntal valley in front of snow covered mountain summits on a sunny autumn day in the western Austrian village of Tulfes. Dominic Ebenbichler/Reuters

Chelsea pensioners stand before crosses in the Field of Remembrance at Westminster Abbey ahead of a visit by Princes Philip and Harry in London. The field commemorates Britain’s war dead with crosses and poppies ahead of Remembrance Sunday. Luke MacGregor/Reuters

Market Closes for November 7^th, 2013

Market  Index	Close	Change
Dow  Jones	15593.98	-152.90    -0.97%
S&P 500	1747.15	-23.34    -1.32%
NASDAQ	3857.333	-74.613    -1.90%
TSX	13294.20	-86.21
		-0.64%

International Markets

Market  Index	Close	Change
NIKKEI	14228.44	-108.87
		-0.76%
HANG  SENG	22881.03	-155.91
		-0.68%
SENSEX	20822.77	-72.17
		-0.35%
FTSE 100	6697.22	-44.47
		-0.66%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.519	2.537
CND.   30 Year Bond	3.085	3.109
U.S.   10 Year Bond	2.5999	2.6421
U.S.   30 Year Bond	3.7084	3.7732

Currencies

BOC Close	Today	Previous
Canadian $	0.95652	0.95968
US   $	1.04546	1.04202
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40229	0.71312
US  $	1.34132	0.74553

Commodities

Gold	Close	Previous
London Gold   Fix	1317.25	1317.25
Oil	Close	Previous
WTI Crude Future	94.80	94.80
BRENT	109.360	109.360

Market Commentary:

Canada

By Eric Lam

Nov. 7 (Bloomberg) — Canadian stocks fell, leaving the benchmark index at a two-week low, as commodity stocks slumped on falling oil and gold prices after the European Central Bank unexpectedly cut its benchmark interest rate.

Dundee Precious Metals Inc. lost 5.8 percent as gold slid to a three-week low. Penn West Petroleum Ltd. tumbled 8.5 percent for a second day of losses after saying yesterday its turnaround will extend into 2014. Manulife Financial Corp. rose 2.7 percent as profit advanced on rising wealth and insurance product sales. Sun Life Financial Inc. gained 2.4 percent as the insurer’s profit topped estimates.

The Standard & Poor’s/TSX Composite Index lost 86.21 points, or 0.6 percent, to 13,294.20 at 4 p.m. in Toronto, the lowest since Oct. 23. The benchmark Canadian equity gauge has advanced 6.9 percent this year, the third-worst performer in the world among developed markets, ahead of Hong Kong and Singapore.

“Oil has continued to sell off and Draghi cutting interest rates to stimulate the economy has caught the markets by surprise,” said Philip Petursson, director of institutional equities with Manulife Asset Management Ltd., in a phone interview from Toronto. His firm manages about C$248 billion ($237 billion). “The decline in gold has to do with the ECB, we’ll see a downward trend for gold as the U.S. dollar rises against the euro.”

Commodity prices dropped as the dollar spiked against the euro after European Central Bank President Mario Draghi cut the region’s benchmark interest rate to a record low. The greenback’s gain put pressure on dollar-denominated products such as oil.

Better-than-expected U.S. growth in the third-quarter fueled speculation the Federal Reserve would cut monetary stimulus sooner than anticipated, damping demand for gold.

Nine of 10 industries in the S&P/TSX retreated. Trading volume was 7.7 percent higher than the 30-day average at this time of day.

Materials producers dropped 1.9 percent. Dundee Precious Metals slumped 5.8 percent to C$4.10 and Torex Gold Resources Inc. sank 11 percent to 92 Canadian cents, the lowest in four years, as the price of gold dropped to a three-week low.

Energy stocks lost 1.1 percent as a group. Bellatrix Exploration Ltd. dropped 7.1 percent to C$7.32 and Suncor Energy Inc. retreated 1.6 percent to C$36.09 as crude declined.

Penn West Petroleum tumbled 8.5 percent to C$8.91, extending a two-day loss to 23 percent. The Calgary-based company yesterday slumped the most since 2008 after saying it will target as much as C$2 billion in asset sales. Penn West has cut more than 25 percent of its workforce this year.

Manulife Financial, Canada’s largest life insurer by market value, rose 2.7 percent to C$19.22, for the highest close in three years. The company posted third-quarter adjusted profit of 36 cents a share, topping the 35-cent average estimate of 12 analysts surveyed by Bloomberg.

Sun Life Financial gained 2.4 percent to C$36.27, the highest level for the stock since August 2009. The insurer yesterday reported said profit beat estimates as revenue from wealth-management and insurance sales increased. Company executives said on a conference call today that expenses will be lower next year.

TMX Group Ltd., the operator of the Toronto Stock Exchange, rallied 2.3 percent to C$48.12, the biggest gain since August.

The Toronto-based company reported adjusted third-quarter earnings of 75 Canadian cents a share, ahead of the 74-cent average estimate of analysts surveyed by Bloomberg.

TMX’s operating expenses fell 7 percent compared with the second quarter, and the company is now on track to achieve C$28 million in annualized savings, ahead of previous projections for C$20 million, the company said.

USA

By Lu Wang and Nick Taborek

Nov. 7 (Bloomberg) — U.S. stocks fell, dragging the Standard & Poor’s 500 Index to its biggest loss in two months, as speculation the Federal Reserve may scale back stimulus amid faster-than-estimated economic growth overshadowed a move by the European Central Bank to cut a key interest rate.

Twitter Inc., which raised $1.82 billion in its initial public offering, rallied 73 percent in its debut. Qualcomm Inc. dropped 3.8 percent after the largest maker of smartphone chips predicted quarterly sales that missed analysts’ estimates. Whole Foods Market Inc. slumped 11 percent after cutting its profit forecast. J.C. Penney Co. jumped 5.6 percent after posting its first rise in monthly same-store sales in two years.

The S&P 500 fell 1.3 percent, the most since Aug. 27, to 1,747.15 at 4 p.m. in New York. The Dow Jones Industrial Average slid 152.90 points, or 1 percent, to 15,593.98. The Nasdaq Composite Index dropped 1.9 percent for the biggest decline in a month. About 7.6 billion shares changed hands on U.S. exchanges, the busiest trading since Sept. 20.

“The market will be volatile,” Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. in Bryn Mawr, Pennsylvania, said in a phone interview. His firm oversees about $7 billion. “You had some good economic news today and we’ll see what the payrolls numbers are tomorrow. The fear is that with better-than-expected economic numbers, tapering will commence sooner rather than later.”

The Dow climbed to a record yesterday and the S&P 500 closed at a one-week high as Fed officials said economic weakness warrants continued stimulus from the central bank. The broad gauge of American equities has rallied 23 percent this year, challenging 2009 for the best annual gain in a decade, as corporate earnings beat estimates and the central bank kept interest rates low to spur economic growth.

Gross domestic product rose at a 2.8 percent annualized rate in the third quarter, led by the biggest increase in inventories in more than a year as household purchases and business investment slowed, a Commerce Department report showed today in Washington. The median forecast of economists surveyed by Bloomberg called for a 2 percent advance. Consumer spending climbed 1.5 percent, the smallest increase since 2011.

“This will certainly fuel expectations that the underlying economy is stronger than the mixed data have suggested,” Quincy Krosby, a market strategist for Newark, New Jersey-based Prudential Financial Inc., which oversees more than $1 trillion of assets, said by telephone. “The question is whether or not the markets can accept good news as good news or whether we’re still on the trajectory where good news is bad news. We’re going to reach an inflection point in the market where good news is in fact good news.”

Investors are watching U.S. data to gauge the health of the world’s largest economy after the Fed said last week it needs to see more evidence of sustained improvement before slowing its $85 billion monthly asset purchases.

Jobless claims decreased by 9,000 to 336,000 in the week ended Nov. 2 from 345,000 the prior period, the Labor Department reported today. Tomorrow’s monthly employment report may show payrolls rose by 120,000 workers in October after a 148,000 gain in September, while the jobless rate rose to 7.3 percent.

The ECB cut its benchmark interest rate to a record low of 0.25 percent from 0.5 percent, after a drop in inflation to the slowest pace in four years threatened its mission to keep prices stable. Euro-area inflation is less than half the ECB’s target and unemployment is at the highest level since the currency bloc was formed in 1999.

“If we learned anything from the last three or four years, a friendly central bank is a good thing for equity prices,” Michael Vogelzang, president and chief investment officer at Boston Advisors LLC, which manages $2.4 billion, said by phone.

“Sentiment in the market is incredibly high and it’s best exemplified by the rush of IPOs coming to the market, including Twitter.”

Twitter soared 73 percent to $44.90. The company, whose website and applications let people post 140-character messages to online followers, yesterday sold 70 million shares at $26 each.

The microblogging service picked a price that values it higher than rival Facebook Inc. and still drew more interest than anticipated. The San Francisco-based company, which is unprofitable and has one-fifth as many users as Facebook, is benefiting from investors’ thirst for companies that will grow quickly in expanding markets like mobile advertising.

Facebook dropped 3.2 percent to $47.56.

Three rounds of Fed stimulus and better-than-expected earnings have driven the S&P 500 up more than 160 percent from a bear-market low in 2009. At yesterday’s close, the index traded at 16.8 times reported earnings, up 19 percent this year and near the highest level in more than three years, data compiled by Bloomberg show. The 15-year average multiple is 19.3.

“The biggest worry out there right now is, ‘if the stock market is going up and it can go up because I’m not in it and therefore there must be a bubble,’” Sam Wardwell, an investment strategist at Pioneer Investments in Boston, said in a phone interview. His firm manages about $225 billion. “As we look at the stock market, it’s not in a bubble territory. Valuations still look reasonably good. Profits are coming in fine.”

Walt Disney Co. and Priceline.com Inc. were among S&P 500 members posting results today. Of the 442 companies in the gauge that have reported earnings so far, 74 percent have beaten analysts’ profit forecasts, according to data compiled by Bloomberg. Income for the broad index probably increased 4.1 percent in the third quarter, and 6.8 percent in the final three months of the year, estimates compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options known as the VIX, jumped 9.8 percent to 13.91, trimming its loss for the year to 23 percent.

All 10 S&P 500 industry groups retreated as consumer, phone and energy companies sank at least 1.4 percent to lead the drop.

Disney fell 2.7 percent to $67.15 for the biggest loss in the Dow. After the market’s close, the world’s largest entertainment company posted fiscal fourth-quarter profit that beat estimates as the company’s theme parks and consumer products boosted income.

Qualcomm dropped 3.8 percent to $67.09. Sales for the three months ending in December will be $6.3 billion to $6.9 billion, the company said. Analysts on average had predicted revenue of $7.01 billion for the period, data compiled by Bloomberg show.

Whole Foods, the largest natural-foods grocer in the U.S., lost 11 percent to $57.26 for its biggest decline since 2009.

Profit excluding certain items will be as much as $1.69 a share in the year ending in September 2014, compared with a previous projection of as much as $1.72 and the average analyst estimate of $1.73 a share.

Tesla Motors Inc., the electric-car maker led by Elon Musk, plunged 7.5 percent to $139.77 after a Model S sedan fire yesterday in Tennessee, the third in five weeks involving the car. The accident happened after the driver hit a metal object, local authorities said.

SolarCity Corp. tumbled 17 percent to $49.69. The second- largest U.S. solar company predicted a loss of as much as 65 cents a share for the final three months of 2013, compared with the average analyst estimate of 54 cents a share.

J.C. Penney jumped 5.6 percent to $8.13. The retailer’s comparable-store sales climbed 0.9 percent in October, the first increase since December 2011.

American Eagle Outfitters Inc. rallied 4.1 percent to $15.25 after saying third-quarter earnings probably fell to 19 cents a share, exceeding its August projection for as much as 16 cents a share. The teen-clothing chain cited better-than- estimated margins for the period.

Transocean Ltd. jumped 7 percent to $52.45. The dual-listed offshore drilling contractor, which replaced Dell Inc. in the S&P 500 last month, posted third-quarter adjusted earnings of $1.37 per share, beating the $1.07 average analyst estimate.

Prudential Financial Inc. climbed 2.4 percent to $83.76.

The No. 2 U.S. life insurer swung to a profit in the third quarter, fueled by pension-transfer deals and the acquisition of a unit from Hartford Financial Services Group Inc.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

The universal power that manifests itself in the universal law

is at one with our true power.

Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

 

Necessity has no law.

-Saint Augusitne, 354-430

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:

AUTUMN

The breeze that autumn night was hot and south.

I met a frog that carried in his mouth

One of those berries, on unknown intent.

So brisk, so earnest, in his ranine hurry,

I stood aside to let him take his bent.

He had his right to’s life as I to mine;

I had my right to my descriptive line,

He had his right to his more precious berry.

I stopped, he hopped, I watched him where he went.

He had no fear of me and could not doubt

What love I had for him, that blebbed and queer

Visitant from the woodland mere

Who, gaudy with his berry sticking out,

Met me beneath the cavern of the porch

As we were meant to meet.

-Miniature monster circled at my feet

Within the coin of my miraculous torch.

 

He lowly, and the architectural porch so tall,

But he, in his way, also a miracle.

-V. Sackville-West, -from The Garden.

Photos of the day

A cyclist rides along a leaf-covered Cleveland Metroparks all-purpose trail in Strongsville, Ohio. Bikers, runners and hikers took advantage of dry weather and temperatures in the mid-60s, before forecast rain and cold arrives later in the day. Mark Duncan/AP

Flower blossoms from vegetation covered with volcanic ash from the eruption of Mount Sinabung in Mardingding, North Sumatra, Indonesia. The 2,600-meter (8,530-foot) -high volcano has been erupting since Sunday, unleashing volcanic ash high into the sky and forcing the evacuation of villagers living around its slope. Binsar Bakkara/AP

Market Closes for November 6^th, 2013

Market  Index	Close	Change
Dow  Jones	15746.88	+128.66    +0.82%
S&P 500	1770.49	+7.52    +0.43%
NASDAQ	3931.946	-7.918    -0.20%
TSX	13380.41	+18.70
		+0.14%

International Markets

Market  Index	Close	Change
NIKKEI	14337.31	+111.94
		+0.79%
HANG  SENG	23036.94	-2.01
		-0.01%
SENSEX	20894.94	-79.85
		-0.38%
FTSE 100	6741.69	-5.15
		-0.08%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.537	2.536
CND.   30 Year Bond	3.109	3.102
U.S.   10 Year Bond	2.6421	2.6660
U.S.   30 Year Bond	3.7732	3.7696

Currencies

BOC Close	Today	Previous
Canadian $	0.95968	0.95710
US   $	1.04202	1.04482
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40811	0.71017
US  $	1.35134	0.74001

Commodities

Gold	Close	Previous
London Gold   Fix	1317.25	1311.79
Oil	Close	Previous
WTI Crude Future	94.80	93.37
BRENT	109.360	109.360

Market Commentary:

Canada

By Eric Lam

Nov. 6 (Bloomberg) — Canadian stocks rose as a rally in gold prices boosted materials shares while investors analyzed earnings before employment data later in the week.

Magna International Inc. advanced 1 percent after boosting its 2013 forecasts for sales. Avigilon Corp., a surveillance equipment maker, soared 25 percent as sales topped estimates.

Semafo Inc. and Taseko Mines Ltd. rallied at least 5.2 percent as the price of gold climbed from a two-week low. Indigo Books & Music Inc. plunged the most ever on lower book sales and higher costs.

The Standard & Poor’s/TSX Composite Index increased 18.70 points, or 0.1 percent, to 13,380.41 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 7.6 percent this year to trade near a two-year high.

“We’re moving now into a period of data-watching and you’ll find people less inclined to make large bets going into Friday’s report,” said Andrew Pyle, fund manager with ScotiaMcLeod Inc. in Peterborough, Ontario. He manages about C$210 million ($201.6 million). “We haven’t had the same momentum there was in New York.”

The Dow Jones Industrial Average rose to a record close today as Federal Reserve officials said the U.S. economy warrants continued stimulus. The U.S. and Canada are scheduled to report jobs data for last month on Nov. 8. Economists forecast fewer workers hired and an increasing unemployment rate in both countries. The U.S. is Canada’s largest trading partner.

“You have to look at the Fed, with a new chairman coming in January, they will err on the side of generosity,” said Irwin Michael, fund manager with ABC Funds in Toronto. The firm manages about C$6 billion ($5.76 billion). “Keep rates low with the $85 billion monthly bond buyback, until they’re absolutely sure the economy has turned. And the market is happy to see that.”

Raw-materials shares increased 0.5 percent as a group to lead gains in the S&P/TSX as seven of 10 industries advanced.

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

Taseko Mines climbed 5.2 percent to C$2.24 and Semafo increased 7.2 percent to C$2.98 as gold futures for December delivery rose the most in almost two weeks.

Magna International rose 1 percent to C$89.77 after increasing its forecasts for 2013 sales to $33.9 billion to $34.8 billion, from $33 billion to $34.7 billion previously.

Avigilon rallied 25 percent to C$25.55, a record high, as the Vancouver-based company posted third-quarter revenue of C$51.1 million, ahead of analysts’ projections for C$40.5 million. Gross margin rose to 53 percent from 51 percent a year ago, as demand worldwide for the company’s high-definition surveillance equipment grows, said Chief Executive Officer Alexander Fernandes in a statement.

Indigo plunged 20 percent to C$8.75 as the company lost C$10.1 million in the quarter, more than double the net loss in the same period a year ago. Indigo blamed the loss on lower book sales as well as higher operating, selling and administrative costs related to increased marketing and product initiatives.

Penn West Petroleum Ltd. slumped 16 percent to C$9.74, the biggest decline in more than four years, as the Calgary-based company reported third-quarter production declined 4.5 percent compared with the previous quarter. Penn West has also targeted as much as C$2 billion in asset sales before 2015 as part of a strategic review.

Air Canada, the nation’s largest airline, slipped 7 percent to C$5.42 after reporting that load factor decreased 1.6 percentage point in October to 81.3 percent from a year ago.

Capacity across the airline’s system rose 3.2 percent in the month as traffic climbed 1.3 percent. Load factor is a measure of airline efficiency relative to capacity.

The airline also said it has been told by market regulators the stock was halted this morning after triggering a circuit breaker. The company said no pending material news will be issued and external sources have suggested to Air Canada the halt may have been triggered by an “erroneous trade order.”

The company is scheduled to report third-quarter earnings on Friday before the markets open.

US

By Lu Wang

Nov. 6 (Bloomberg) — U.S. stocks advanced, sending the Dow Jones Industrial Average to a record close, as Federal Reserve officials said economic weakness warrants continued stimulus and investors await data this week on jobs and growth.

Microsoft Corp. climbed 4.2 percent as Nomura Holdings Inc. said the software company may exit its money-losing consumer business under a new chief executive officer. Ralph Lauren Corp. rallied 5.5 percent after the apparel maker boosted the lower end of its sales forecast and increased its dividends. Tesla Motors Inc. tumbled 15 percent as its vehicle sales missed some analysts’ estimates.

The Standard & Poor’s 500 Index rose 0.4 percent to 1,770.49 at 4 p.m. in New York, within two points of its all- time closing high. The Dow added 128.66 points, or 0.8 percent, to 15,746.88, surpassing its previous closing record of 15,680.35 on Oct. 29. About 6.1 billion shares changed hands on U.S. exchanges, 3 percent above the three-month average.

“The central bank has decided they will reward risk behavior and that’s what we’re going to get,” Bill Mann, chief investment officer at Motley Fool Asset Management in Alexandria, Virginia, said in a phone interview. His firm manages $560 million. “The market will keep hitting their highs until the stimulus reverses itself.”

The S&P 500 has surged 24 percent this year, heading for the best annual performance since 2003, as corporate earnings beat forecasts and the central bank maintained stimulus measures.

Two separate papers by members of the Fed board yesterday argued the need to maintain a loose monetary policy to support growth in the world’s biggest economy.

William English, head of the Division of Monetary Affairs, supported the Fed’s strategy of maintaining low interest rates while unemployment is above 6.5 percent and wrote that an even lower threshold may be helpful. Another paper by David Wilcox said the weakness of the U.S. economy calls for a “highly accommodative monetary policy.”

“Our initial assessment is that they considerably increase the probability that the FOMC will reduce its 6.5 percent unemployment threshold for the first hike in the federal funds rate,” Jan Hatzius, chief economist of Goldman Sachs Group Inc., wrote yesterday, referring to the studies.

Investors are watching data to gauge the health of the U.S. economy after Fed policy makers said last week they need to see more evidence of sustained improvement before slowing the pace of its $85 billion monthly bond purchases.

A report today showed the Conference Board’s index of U.S. leading indicators, a gauge of the outlook for the next three to six months, increased 0.7 percent in September. The median forecast of economists surveyed by Bloomberg called for a gain of 0.6 percent.

Data later this week may show the U.S. economy slowed in the third quarter and employers hired fewer workers in October.

Commerce Department data tomorrow may show gross domestic product grew at a 2 percent annualized rate after a 2.5 percent pace in the second quarter, according to the median forecast of economists surveyed by Bloomberg. Payrolls rose by 120,000 workers last month after a 148,000 gain in September, while the jobless rate rose to 7.3 percent, Labor Department figures may show on Friday.

Three rounds of bond purchases from the Fed and better- than-expected earnings have helped drive the S&P 500 up more than 160 percent from a bear market low in 2009.

Of the 423 S&P 500 companies that have reported earnings so far, 75 percent have beaten analysts’ profit forecasts, according to data compiled by Bloomberg. Income for the broad index probably increased 4.1 percent in the third quarter, according to estimates compiled by Bloomberg.

“We’re over the period where the market is lifting all boats,” Michael Binger, who helps oversee $410 million as senior portfolio manager for Gradient Investments in Arden Hills, Minnesota, said in a phone interview. “The economy is growing at a mediocre rate. Tapering news is put on hold. At the end of the day, stock prices follow earnings and earnings continue to grow. We have to pay attention to specific stocks.”

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options known as the VIX, fell 4.5 percent to 12.68, extending its decline this year to 30 percent.

Eight out of 10 S&P 500 industry groups gained as consumer- staples and utility companies rose the most, climbing at least 1.1 percent.

Microsoft, the world’s largest software maker conducting its first-ever CEO search, gained 4.2 percent to $38.18 for the biggest increase in the Dow and its highest level since 2000.

Rick Sherlund, a Nomura analyst, increased his share-price forecast to $45 from $40, citing potential changes under a new CEO, including a disposal of Microsoft’s business in consumer products such as the Bing search engine and Xbox game console.

Ralph Lauren advanced 5.5 percent to $180.52. The company said it now expects full-year revenue to grow more than 5 percent, up from an earlier projection of an increase of at least 4 percent. Ralph Lauren raised its quarterly dividend to 45 cents a share from 40 cents.

Ensco Plc jumped 4.4 percent to $59.55. The offshore contract drilling company boosted its quarterly dividend by 50 percent to 75 cents a share.

Tesla plunged 15 percent to $151.16 for its biggest slide since January 2012. The company said it delivered about 5,500 Model S vehicles in the third quarter. Brian Johnson, an auto analyst at Barclays Plc, had expected 5,820, while Dan Galves of Deutsche Bank AG estimated the company would ship 5,850 cars.

Abercrombie & Fitch Co. slumped 14 percent to $33.13 for the biggest drop in the S&P 500 and its lowest level in almost a year. The retailer’s sales trailed analysts’ estimates as teens restrained spending on clothing.

Chesapeake Energy Corp. dropped 6.8 percent to $26.23. The company’s forecast implies a decline in oil production during the fourth quarter from the previous three months, raising concern over its ability to deliver growth next year, William Featherston, an analyst with UBS AG, wrote in a note to clients.

Twitter Inc., the San Francisco-based short-message Internet service, will probably set the price for its initial public offering tonight and begin trading on the New York Stock Exchange tomorrow. It’s likely to raise more than $1.75 billion in a deal several times oversubscribed, two people with knowledge of the matter said this week.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Even at the gate of death, in the greatest danger,

in the tick of the battlefield,

at the bottom of the ocean, on the tops of the highest mountains,

in the thickest of the forest, tell yourself,

“I am He, I am He.”

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

They are proud in humility; proud that they

are not proud.

-Robert Burton, 1577-1640.

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:

Autumn’s a preparation for renewal,

Yet not entirely shorn

Of tardy beauty, last and saddest jewel

Bedizening where it may not adorn.

Few of the autumn blooms are deeply dear,

Lacking the spirit volatile and chaste

That blows across the ground when pied appear

The midget sweets of Spring, and in their haste

The vaporous trees break blossom pale and clear,

-Carpet and canopy, together born…

-Vita Sackville-West, from The Garden

Photos of the day

Loch Dunmore reflects autumnal leaves, near Pitlochry, Scotland. Russell Cheyne/Reuters

Fallen leaves lie on a puddle of water during a rainy autumn morning at Parque da Cidade, in Porto, Portugal. The city park, opened in 1993, is the largest urban park in Portugal, occupying 205 acres near the Atlantic coast with about 6 miles of walking paths. Paulo Duarte/AP

Market Closes for November 5^th, 2013

Market  Index	Close	Change
Dow  Jones	15618.22	-20.90    -0.13%
S&P 500	1762.97	-4.96    -0.28%
NASDAQ	3939.864	+3.273    +0.08%
TSX	1336178	—
		—

International Markets

Market  Index	Close	Change
NIKKEI	14225.37	+23.80
		+0.17%
HANG  SENG	23038.95	-150.67
		-0.65%
SENSEX	20974.79	-264.57
		-1.25%
FTSE 100	6764.84	-16.78
		-0.25%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.536	2.494
CND.   30 Year Bond	3.102	3.063
U.S.   10 Year Bond	2.6660	2.5999
U.S.   30 Year Bond	3.7696	3.6926

Currencies

BOC Close	Today	Previous
Canadian $	0.95710	0.95961
US   $	1.04482	1.04209
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40803	0.71021
US  $	1.34762	0.74205

Commodities

Gold	Close	Previous
London Gold   Fix	1311.79	1314.97
Oil	Close	Previous
WTI Crude Future	93.37	94.62
BRENT	109.360	109.360

Market Commentary:

Canada

By Eric Lam

Nov. 5 (Bloomberg) — Canadian stocks erased losses in the final two hours of trading as declines among gold producers offset rallies in Paladin Labs Inc. and Open Text Corp., fueled by deal activity.

Iamgold Corp. dropped 3.9 percent as the metal’s price dropped to a two-week low. Paladin, a Canadian drug company, surged 49 percent to a record high after agreeing to be bought by Endo Health Solutions Inc. Open Text jumped 10 percent after agreeing to acquire a technology consulting firm. Encana Corp. rose 3 percent as it plans to cut its workforce, lower its dividend and sell shares in an initial offering for one of its assets to boost cash flow.

The Standard & Poor’s/TSX Composite Index was unchanged at 13,361.78, at 4 p.m. in Toronto, erasing earlier losses of as much as 0.4 percent.

“I think people are still searching for direction. We’re not going to get much on the calendar until Thursday,” said Brian Huen, managing partner with Red Sky Capital Management Ltd., on the phone from Toronto. His firm manages about C$225 million ($215.4 million). “Gold stocks had a pretty good relief rally yesterday, but there’s very little momentum in gold prices right now so with the volatility in the sector it’s not surprising to see it at a loss.”

The S&P/TSX rallied 4.5 percent in October and is trading near a two-year high. The benchmark Canadian equity gauge has advanced 7.5 percent this year, the third-worst performer in the world among developed markets, ahead of Hong Kong and Singapore.

Investors have been assessing global data to determine whether major economies are strong enough to generate faster growth. Data today from the U.S. showed service industries expanded in October at a faster pace than forecast. Reports later this week may show the U.S. economy slowed in the third quarter and employers hired fewer workers in October. Canada will report jobs data for last month on Nov. 7.

The European Union today cut its forecast for euro-area growth next year and raised its unemployment estimate. Investors are weighing whether the region’s central bank will cut interest rates on Nov. 7.

Five of 10 groups in the S&P/TSX slumped today. Raw- materials producers paced losses, sliding 0.5 percent. Trading volume was 12 percent higher compared with the 30-day average.

The S&P/TSX Gold Index slid 1.2 percent after advancing 3 percent yesterday. The gauge is down 40 percent this year. The price of gold slumped to the lowest in more than two weeks as the U.S. services data fueled bets the Federal Reserve may trim stimulus sooner than anticipated.

Alacer Gold Corp. fell 6.9 percent to C$2.68 and Iamgold dropped 3.9 percent to C$5.18.

Bombardier Inc., the world’s third-largest planemaker, lost 0.2 percent to C$4.53 for a fifth day of declines. The stock has slumped 14 percent since posting weaker-than-estimated quarterly profit on Oct. 31.

Canadian Western Bank lost 1.8 percent to C$32.94 and Royal Bank of Canada, the nation’s largest lender, slipped 0.4 percent to C$70.04. Seven of 10 members of the the S&P/TSX Banks Index retreated today.

Open Text gained 10 percent to C$85.32, an all-time high, after agreeing to buy closely held GXS Group Inc. in a $1.17 billion deal.

GXS is a business-to-business cloud integration company, marketing software that helps companies communicate and share data.

Paladin climbed 49 percent to a record C$95.43, after the drug company agreed to sell itself to Endo Health Solutions for about $1.6 billion. The purchase, to be made mostly through stock, values each Paladin share at C$77, a 20 percent premium to yesterday’s closing price.

Encana, Canada’s largest natural gas producer, rallied 3 percent to C$19.15, the most in almost two months. The company will focus spending in 2014 on five oil and liquids areas including the Duvernay, Montney, DJ Basin, San Juan Basin and Tuscaloosa Marine Shale while cutting 800 jobs.

The Calgary-based company, which has maintained a 20-cent quarterly dividend since 2009, today lowered the payout to 7 cents.

USA

By Lu Wang

Nov. 5 (Bloomberg) — U.S. stocks declined, following two days of gains that sent the Standard & Poor’s 500 Index to within five points of a record high, as investors awaited this week’s data on economic growth and employment.

Homebuilders slumped 1.8 percent as a group as JPMorgan Chase & Co. said D.R. Horton Inc.’s order growth may trail analysts’ expectations. Delphi Automotive Plc dropped 5.2 percent after narrowing its profit projection. Tenet Healthcare Corp. tumbled 8.8 percent as the hospital chain’s earnings forecast missed estimates. GT Advanced Technologies Inc. surged 21 percent after agreeing to supply equipment to Apple Inc.

The S&P 500 fell 0.3 percent to 1,762.97 at 4 p.m. in New York. The Dow Jones Industrial Average lost 20.90 points, or 0.1 percent, to 15,618.22. About 6.2 billion shares changed hands on U.S. exchanges, 5 percent above the three-month average.

“The market is in a quandary right now,” Colleen Supran, a principal at San Francisco-based Bingham, Osborn & Scarborough, which manages about $3 billion, said in a phone interview. “For jobs, you’re just hoping you still see some steady traction, but it’s hard to predict, because a healthy jobs market might also mean that the Fed feels more comfortable with an earlier tapering date. It’ll be a little choppy.”

The S&P 500 climbed 0.4 percent yesterday, building on four straight weeks of gains that sent the index to a record 1,771.95 on Oct. 29, as Exxon Mobil Corp. and U.S. Steel Corp. led a rally among commodity shares. The benchmark gauge has surged 23.6 percent this year, poised for the best annual performance since 2003, as company earnings beat forecasts and the Federal Reserve maintained stimulus measures.

Investors are watching data to gauge the health of the U.S. economy after the central bank last week said it needs to see more evidence of sustained improvement before slowing the pace of its $85 billion monthly bond purchases. Economists in a Bloomberg survey project that tapering will begin in March, based on the median estimate.

The European Union cut its forecast for euro-area growth next year and raised its unemployment estimate as the economy struggled to regain momentum after a record-long recession. In the U.S., service industries unexpectedly accelerated in October, as the Institute for Supply Management’s U.S. non- manufacturing index rose to 55.4 from 54.4 the prior month.

Fed Bank of Richmond President Jeffrey Lacker said the U.S. economy will probably grow just 2 percent next year, with no new source of strength. The forecast is far below the 2.9 percent to 3.1 percent estimate among Federal Open Market Committee participants at a Sept. 17-18 meeting.

Economists in a Bloomberg survey last week predicted a report will show the economy expanded 2 percent in the third quarter, down from 2.5 percent the previous quarter. The Commerce Department plans to release its initial estimate of third-quarter growth on Nov. 7.

A report the next day may show employers hired fewer workers in October. Payrolls rose by 125,000 workers last month after a 148,000 gain in September, Labor Department figures may show.

“A lot of people are nervous by how strong the market has been this year,” Patrick Kaser, a managing director and portfolio manager at Brandywine Global Investment Management in Philadelphia, said by phone. His firm oversees about $45 billion. “There is still skepticism about how the economy is really doing and whether these gains are from artificial factors, like the Fed, or from real strength in company results.”

Of the 404 S&P 500 companies that have reported earnings so far, 75 percent have beaten analysts’ forecasts, according to data compiled by Bloomberg. Income for the broad index probably increased 4.1 percent in the third quarter, according to estimates compiled by Bloomberg.

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options known as the VIX, climbed 2.6 percent to 13.27. The measure is down 26 percent this year.

Eight out of 10 S&P 500 industries fell as telephone and energy companies fell more than 0.8 percent for the worst performance. Verizon Communications Inc. declined 1.9 percent to $50.10 and AT&T Inc. dropped 2.5 percent to $35.53 for the steepest losses in the Dow.

An S&P index of homebuilders declined 1.8 percent as all but one of its 11 members retreated. Michael Rehaut, an analyst with JPMorgan, said in a note that D.R. Horton’s quarterly order growth may miss his expectation, which is already below other analysts’ estimates. D.R. Horton, scheduled to announce results on Nov. 12, sank 2.2 percent to $18.41.

Delphi Automotive dropped 5.2 percent to $55.01. The auto- parts maker narrowed its earnings forecast, saying it expects to earn $4.25 to $4.35 a share this year. That trailed the average analyst estimate of $4.41 in a Bloomberg survey.

Tenet Healthcare declined 8.8 percent to $44 for the biggest loss in the S&P 500. The hospital chain’s fourth-quarter forecast was less than analysts’ estimates because of slow patient admissions.

Expeditors International of Washington Inc. dropped 6.2 percent to $43.41. The logistics company said it earned 45 cents a share in the third quarter. That trailed the average analyst estimate of 48 cents.

GT Advanced Technologies surged 21 percent to $10.10 after saying it will provide furnaces and related equipment to produce materials out of sapphire at a new Apple plant in Arizona.

Substances derived from sapphire are used in smartphones to cover camera lenses and home buttons. GT Advanced also forecast 2014 revenue exceeding analyst estimates.

Regeneron Pharmaceuticals Inc. jumped 7.3 percent, the most in the S&P 500, to $302.32. The drug maker reported third- quarter adjusted profit of $2.40 a share, compared with the average analyst estimate of $1.90 a share.

CVS Caremark Corp. gained 2 percent to $63.22. The pharmacy chain reported third-quarter profit that beat analyst estimates and raised its earnings forecast for the year.

AOL Inc. advanced 8.5 percent to $42.02, the highest level since November 2012. The online media company reported third- quarter sales and adjusted profit above forecasts.

Michael Kors Holdings Ltd. gained 5.8 percent to a record $79.13. The luxury-goods company predicted full-year earnings of $2.77 to $2.81 a share, compared with a previous estimate of $2.67 to $2.69. Analysts on average forecast $2.77 a share.

Endo Health Solutions Inc. soared 29 percent to an all-time high of $56.22. The maker of painkillers, facing declining revenue for its main treatments, agreed to buy Canadian drug company Paladin Labs Inc. for about $1.6 billion to expand in that country and emerging markets.

Marvell Technology Group Ltd. jumped 8.5 percent to $13.04.

KKR & Co. has acquired almost 5 percent of the computer chipmaker, two people with knowledge of the matter said.

 

Have  a wonderful evening everyone.

 

Be magnificent!

 

Where does the soul go after death?  Where could the earth fall to?

Where can the soul go?  Where is it not already?

The great cornerstone of Vedantism is the recognition of Self.

Man, have faith in yourself.  The soul is the same in every one.

It is all purity and perfection and the more pure and perfect we [you] are

the more purity and perfection you will see.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

No one can make you feel inferior

without your consent.

-Eleanor Roosevelt, 1884-1962.

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:

Lines to a Superior Young Lady on the Occasion

of Her First Manifesting a Will of Her Own

-by Rudyard Kipling

Imperious, long-coated Sage

Though your months as men reckon are two

You are wiser than ten times your age

And these rhymes are for you.

 

Oh Pagan Philosopher small,

You can’t read them now, it is true,

For dinner and sleep are your all,

And your knowledge is – you.

 

But you scream when there’s anything wrong,

And you scream till it’s righted, you do;

And Creation attends to your song

And the Earth waits on You.

 

What more could the best of us do,

Though his years might be three-score and odd?

And therefore with Deference due,

These Verses are written for You

Oh wee little, wise little God!

 

On this day in…

1922, the entrance to King Tut’s tomb was discovered in Egypt’s Valley of the Kings.

1946, UNESCO was founded.

1948, T.S. Eliot won the Nobel Prize in literature.

2008, Barack Obama was elected President.

 

If you refuse to be made straight when you are green, you will not be made straight when you are dry.  –African Proverb.

Photos of the day

Visitors on the floor of the New York Stock Exchange use their smartphones and tablet devices to photograph the opening bell ceremonies. Twitter’s confidence appears to be increasing ahead of its initial public offering set for later this week at the NYSE, as the 7-year-old short messaging service on Monday boosted the price range for the IPO. Richard Drew/AP

Waves crash against the sea front in Wimereux as strong winds battered northern France. Pascal Rossignol/Reuters

Market Closes for November 4^th, 2013

Market  Index	Close	Change
Dow  Jones	15639.12	+23.57    +0.15%
S&P 500	1767.93	+6.29    +0.36%
NASDAQ	3936.591	+14.549    +0.37%
TSX	13361.78	+24.32
		+0.18%

International Markets

Market  Index	Close	Change
NIKKEI	14201.57	-126.37
		-0.88%
HANG  SENG	23189.62	-60.17
		-0.26%
SENSEX	21239.36	+42.55
		+0.20%
FTSE 100	6763.62	+28.88
		+0.43%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.494	2.505
CND.   30 Year Bond	3.063	3.073
U.S.   10 Year Bond	2.5999	2.6218
U.S.   30 Year Bond	3.6926	3.6961

Currencies

BOC Close	Today	Previous
Canadian $	0.95961	0.95932
US   $	1.04209	1.04240
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40866	0.70990
US  $	1.35177	0.73977

Commodities

Gold	Close	Previous
London Gold   Fix	1314.97	1314.97
Oil	Close	Previous
WTI Crude Future	94.62	94.61
BRENT	109.360	109.360

Market Commentary:

Canada

By Aubrey Pringle

Nov. 4 (Bloomberg) — Canadian stocks rose, after a two-day drop, as raw-materials producers rallied and investors awaited data for clues on when the U.S. central bank will reduce its bond-buying program.

Aurico Gold Inc. and China Gold International Resources Corp. added at least 6 percent as gold miners led gains among materials producers. Pacific Rubiales Energy Corp. climbed 3.6 percent after the crude producer received licenses from Colombia’s environmental agency for a new oil field. BlackBerry Ltd. sank 16 percent after Fairfax Financial Holdings Ltd. walked away from a $4.7 billion plan to buy the smartphone maker.

The Standard & Poor’s/TSX Composite Index gained 24.32 points, or 0.2 percent, to 13,361.78 at 4 p.m. in Toronto after falling as much as 0.2 percent earlier in the day. The benchmark Canadian equity gauge fell 0.9 percent in the prior two sessions. It has added 7.5 percent this year. Trading volume was 10 percent below the 30-day average today.

Investors are waiting for “further confidence or clarification in terms of what the Fed’s going to do,” Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc., in a phone interview from Toronto. The firm manages about C$4 billion. “There’s not a lot of action either way here. October was a great month. We can’t keep having great months.”

Stimulus from the Federal Reserve and other central banks has helped fuel a global rally in equities. The S&P/TSX surged 4.5 percent in October, for a fourth straight monthly gain and the biggest in two years.

The Fed last week maintained the pace of its monthly bond buying even as policy makers noted underlying strength in the economy, which fueled speculation the central bank could cut stimulus sooner than anticipated.

Data this week on U.S. gross domestic product and employment will provide clues to whether the economy is strong enough to continue growing with less stimulus.

In Canada, a report today showed consumer confidence rose for the first time in five weeks as opinions about job security and house prices improved. The Bloomberg Nanos Canadian Confidence Index, a weekly measure of the economic mood of Canadians, advanced to 58.5 in the seven days through Nov. 1 from 57.7 the previous week.

Four of 10 main groups in the S&P/TSX rose today, led by a 2.3 percent rally among raw-materials companies. Nine of the 10 biggest advances in the broad index were gold miners. China Gold added 6 percent to C$2.85 and Aurico climbed 6.4 percent to C$4.48.

The S&P/TSX Gold Index jumped 3 percent, with all 24 members advancing to snap a two-day losing streak. The metal gained 0.1 percent from a two-week low in New York. A decline in the U.S. dollar boosted demand for gold as an alternative investment.

Pacific Rubiales climbed 3.6 percent to C$22.22, halting a five-day losing streak. Colombia’s largest independent oil producer plans to start production at the well next year after the licensing process experienced repeated delays.

Energy producers retreated less than 0.1 percent as a group, as oil fluctuated near the lowest level in four months.

The industry has fallen four straight days, the longest streak since August.

Advantage Oil & Gas Ltd. slid 3.6 percent to C$4.06 and Bonavista Energy Corp. dropped 2.4 percent to C$11.90 to pace the declines.

BlackBerry plummeted 16 percent to C$6.75, the lowest since September 2012. Fairfax Financial, the company’s largest shareholder, ended its bid to buy the smartphone maker, opting instead for a $1 billion bond deal and a management shakeup.

Chief Executive Officer Thorsten Heins will step down and former Sybase Inc. CEO John Chen will become executive chairman, putting him in charge of the company’s strategy.

Fairfax Financial dropped 2.5 percent to C$423.98, extending its losing streak to five days.

USA

By Lu Wang and Nick Taborek

Nov. 4 (Bloomberg) — U.S. stocks rose, after the Standard & Poor’s 500 Index climbed for four straight weeks, as Exxon Mobil Corp. and U.S. Steel Corp. led a commodity rally while investors awaited data on employment and economic growth.

Exxon Mobil, the world’s largest energy company, increased 2.5 percent. U.S. Steel and AK Steel Holding Corp. gained more than 4.4 percent on an industry upgrade by Goldman Sachs Group Inc. Kellogg Co. climbed 0.7 percent after announcing it will reduce its global workforce by seven percent as part of a four- year cost-saving plan. BlackBerry Ltd. tumbled 16 percent as Fairfax Financial Holdings Ltd. walked away from a $4.7 billion takeover plan.

The S&P 500 gained 0.4 percent to 1,767.93 at 4 p.m. in New York. The Dow Jones Industrial Average added 23.57 points, or 0.2 percent, to 15,639.12. About 5.7 billion shares changed hands, the slowest trading in two weeks.

“The path of least resistance continues to be up,” James Dunigan, who helps oversee $118 billion as chief investment officer in Philadelphia at PNC Wealth Management, said by phone.

“In general, the earnings picture is good. Valuations with the market at these levels are probably in the fair range. As you get into year-end portfolio adjustments, playing on that momentum we’ll likely see the market continue to do well here as opposed to selling off. I think if there are any sort of corrections they’ll be short lived in this environment.”

The equity gauge jumped 4.5 percent in October, reaching a record on Oct. 29, as the Federal Reserve decided to continue $85 billion in monthly bond purchases, and companies beat earnings forecasts. Investors are watching data to gauge the health of the U.S. economy after the Fed last week said it needs to see more evidence of sustained improvement before reducing the pace of its monthly bond purchases.

Seventy-six percent of the 374 S&P 500 companies that have reported earnings so far have beaten analysts’ estimates, according to data compiled by Bloomberg. Income for the broad index probably increased 4.1 percent in the third quarter, according to analyst estimates compiled by Bloomberg.

The S&P 500 has surged more than 160 percent from a bear market low in 2009 as the central bank introduced unprecedented monetary stimulus to spur growth. The benchmark gauge is up 24 percent this year, poised for the best annual gain since 2003.

The rally pushed the index’s price-to-earnings ratio up 18 percent this year to 16.8, near the highest level in more than three years, data compiled by Bloomberg show. The 15-year average multiple is 19.3.

The economy probably slowed in the third quarter and employers hired fewer workers in October, economists project reports to show this week.

Gross domestic product grew at a 2 percent annualized rate after a 2.5 percent pace from April through June, according to the median forecast of 69 economists surveyed by Bloomberg before Commerce Department figures due Thursday. Growth in consumer spending, the biggest part of the economy, was probably the weakest since 2011. Payrolls rose by 125,000 workers last month after a 148,000 gain in September, Labor Department figures may show Friday.

Data today showed U.S. factory orders increased 1.7 percent in September after falling 0.1 percent the prior month.

Economists estimated a gain of 1.8 percent for September.

“We’ve been in this slow growth environment for some time and we don’t see it breaking out of the trend,” Rex Macey, who helps oversee $20 billion as chief investment officer at Wilmington Trust Investment Advisors in Atlanta, said in a phone interview. “That’s the thing markets kind of like, where it could be a little warmer, but at least it’s not too hot.”

The rally in U.S. equities may accelerate in the final two months of the year and lift the S&P 500 to its biggest annual increase in 16 years, a look at historical data suggests. Since 1928, shares have climbed in November and December 82 percent of the time when the benchmark gauge advanced at least 10 percent through October, data compiled by S&P and Bloomberg show. The mean increase of 6 percent in this period signals that the index could jump to 1,862.79.

In another sign that investor appetite for equities is growing, Twitter Inc. raised the price of shares in its initial public offering, putting it on track to raise $1.75 billion amid brisk demand. Twitter is likely to raise its offering price again as the IPO is already several times oversubscribed at $25 a share, the high end of the range, two people with knowledge of the matter said.

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options known as the VIX, lost 2.6 percent today to 12.93. The measure is down 28 percent this year.

All 10 S&P 500 main industries advanced as energy companies climbed 1.3 percent for the best performance. Exxon Mobil increased 2.5 percent to $92.10 for the biggest gain in the Dow.

U.S. Steel climbed 4.4 percent to $26.91 and AK Steel Holding Corp. rallied 8.7 percent to $5. Both stocks were raised to buy from sell at Goldman Sachs.

U.S. steel demand is “heading to a solid sustainable recovery” over coming years, Sal Tharani, an analyst with Goldman Sachs, wrote in a note, boosting the rating on the U.S. steel industry to neutral from cautious.

Coal stocks advanced amid an improved outlook for the steel industry. Alpha Natural Resources Inc., a producer of metallurgical coal that’s used to make steel, jumped 9.4 percent to $8.13. Consol Energy Inc. advanced 3.1 percent to $37.76.

Vulcan Materials Co. rallied 7.7 percent, the most in the S&P 500, to $57.78. The producer of construction aggregates reported third-quarter sales of $813.6 million, beating the average analyst estimate by the biggest margin in more than a year, data compiled by Bloomberg show.

Alcoa Inc. jumped 7 percent to $9.92 for the second-biggest increase in the S&P 500.

Kellogg, the world’s largest cereal maker, increased 0.7 percent to $62.72. The company’s cost-saving program, known as “Project K,” will result in total, pretax charges of between $1.2 billion and $1.4 billion, the company said.

Abercrombie & Fitch Co. climbed 3.6 percent to $38.21. The teenager apparel retailer was boosted to buy from neutral at SunTrust Robinson Humphrey Inc.

Sysco Corp. gained 4.3 percent to $33.96. The distributor of food to restaurants, hospitals and schools reported profit of 49 cents a share for the fiscal first quarter, beating the average analyst estimate of 47 cents in a Bloomberg survey.

Groupon Inc. gained 6.4 percent to $10.57. The online-deals provider may “modestly exceed” analyst expectations for quarterly earnings, driven by growth in North America and a rebound in business from Europe, Middle East and Africa, Heath Terry, an analyst with Goldman Sachs, said in a note. Groupon is scheduled to announce results on Nov. 7.

BlackBerry tumbled 16 percent to $6.50 as the company attempts to recover with a management shakeup and $1 billion bond deal. Rather than acquiring the company, Fairfax will invest $250 million in the convertible bonds, according to a statement.

As part of the new agreement, Chief Executive Officer Thorsten Heins will step down. Former Sybase AG CEO John Chen will become executive chairman, putting him in charge of the company’s strategy.

 

Have  a wonderful evening everyone.

 

Be magnificent!

 

When you look at that unchanging Existence

from the outside, you call it God;

and when you look at it from the inside,

you call it yourself.  It is but one.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

The truth will set you free.  But not until it is finished

with you.

-David Foster Wallace, 1962-2008.

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 writing the newsletter on her behalf.

Reminder:  This Sunday, November 3 marks the end of Daylight Savings.  At 2am on Sunday morning, clocks will go back 1 hour.

When thinking about Daylight savings, I came across an article in the Globe and Mail:  “Are you a chipper early bird or narcissistic night owl? Find out before the clocks change”.  This article is very interesting and goes through different studies about early birds versus night owls.  Here is one I thought I would share:

EARLY BIRDS ARE PROACTIVE OPTIMISTS

In 2009, Harvard biologist Christoph Randler found that morning people are more likely to agree with statements like “I spend time identifying long-range goals for myself” and “I feel in charge of making things happen.” This helps explain why they are more successful in business, Randler said.

To read more on the studies visit: http://www.theglobeandmail.com/life/health-and-fitness/health/early-bird-or-night-owl/article15194058/

“Success is about creating benefit for all and enjoying the process. If you focus on this & adopt this definition, success is yours.” – Kelly Kim

Photos of the Day:

Spectators watch the second free practice at the Yas Marina racetrack in Abu Dhabi, United Arab Emirates. Hassan Ammar/AP

A woman takes a photograph of fish-shaped lanterns during the Seoul Lantern Festival 2013 at Cheonggye stream in central Seoul, South Korea. Kim Hong-Ji/Reuters

Market Closes for November 1^st, 2013

Market  Index	Close	Change
Dow  Jones	15615.55	+69.80    +0.45%
S&P 500	1761.64	+5.10    +0.29%
NASDAQ	3922.042	+2.336    +0.06%
TSX	13337.46	-23.80
		-0.18%

International Markets

Market  Index	Close	Change
NIKKEI	14201.57	-126.37
		-0.88%
HANG  SENG	23249.79	+43.42
		+0.19%
SENSEX	21196.81	+32.29
		+0.15%
FTSE 100	6374.74	+3.31
		+0.05%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.505	2.424
CND.   30 Year Bond	3.073	3.014
U.S.   10 Year Bond	2.6218	2.5542
U.S.   30 Year Bond	3.6961	3.6386

Currencies

BOC Close	Today	Previous
Canadian $	0.95932	0.95840
US   $	1.04240	1.04341
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40568	0.71140
US  $	1.34850	0.74157

Commodities

Gold	Close	Previous
London Gold   Fix	1314.97	1323.10
Oil	Close	Previous
WTI Crude Future	94.61	96.38
BRENT	109.360	109.360

Market Commentary:

Canada

By Eric Lam

Nov. 1 (Bloomberg) — Canadian stocks declined to a one- week low, after falling the most in three weeks yesterday, as investors assessed corporate earnings and gold producers slid after Barrick Gold Corp. said it will sell shares.

Barrick, the world’s largest producer of gold, dropped 7.5 percent as it plans to raise at least $3 billion to pay down debt. Taseko Mines Ltd. plunged 9.8 percent after a federal review panel said its project in British Columbia has significant adverse environmental effects. Norbord Inc. jumped 10 percent as the panelboard producer’s earnings topped estimates. Clearwater Seafoods Inc. climbed 8.2 percent after declaring an annual dividend.

The Standard & Poor’s/TSX Composite Index fell 23.80 points, or 0.2 percent, to 13,337.46 at 4 p.m. in Toronto. The benchmark Canadian equity gauge advanced 4.5 percent in October for a fourth month of gains.

“The commodities space is a little soft, and the explanation is the big Barrick deal yesterday,” said Michael O’Brien, fund manager with TD Asset Management Inc., in Toronto. He helps manage C$216 billion ($207 billion) with the firm. “That has an impact on the other gold names as well.”

Gold and energy producers also fell on signs of climbing supplies of raw materials at a time when the prospect of reduced U.S. Federal Reserve stimulus may cut demand.

Data from the U.S. showed an index of manufacturing rose last month to the highest level since April 2011. An earlier report from China indicated the nation’s official manufacturing Purchasing Managers’ Index rose more than estimated in October. The U.S. and China are Canada’s two biggest trading partners.

Barrick sank 7.5 percent to C$18.77, the most in four months. The company said yesterday it plans to raise at least $3 billion through a share offering in order to repay a portion of its $15 billion in debt. Barrick also said yesterday it will suspend construction at its $8.5 billion Pascua-Lama project to conserve cash.

Osisko Mining Corp. slumped 7.5 percent to C$4.71 and Silvercorp Metals Inc. retreated 5.9 percent to C$3.06 as gold and silver prices declined to two-week lows in New York.

Taseko Mines plunged 9.8 percent to C$2.31, the biggest drop since April, as a review panel said the company’s New Prosperity copper and gold project in British Columbia would affect water quality and grizzly bears in the area.

“The risks are modest and the social and economic benefits are enormous,” the company said in a statement. Taseko said it will challenge the report’s findings.

Legacy Oil & Gas Inc. dropped 4.5 percent to C$6.74 and Suncor Energy Inc. fell 2.9 percent to C$36.80 as crude tumbled below $95 a barrel for the first time since June.

Valeant Pharmaceuticals International Inc. advanced 5.4 percent to C$116.04, the biggest gain in five months, as seven of 10 industries in the S&P/TSX rose. Trading volume was 7.1 percent higher compared with the 30-day average at this time of the day.

Valeant agreed to sell its over-the-counter brand Caladryl in India to Piramal Enterprises Ltd. Terms of the deal were not disclosed. Caladryl is used for minor skin irritations.

Alex Arfaei, an analyst with BMO Capital Markets, separately said in a report a Valeant purchase of some Merck & Co. products would be logical for both companies.

Norbord added 10 percent to C$32.70 as it reported adjusted earnings of 33 cents a share, excluding a one-time income tax recovery, ahead of the 20 cent estimate of Bloomberg analysts.

Prices for wood particle oriented strand board, used in home construction, bottomed in September and is gradually improving, Chief Executive Officer Barrie Shineton said in a statement.

Clearwater Seafoods rallied 8.2 percent to C$6.33, for an eight-year high, after initiating an annual dividend of 10 cents a share.

US

Nick Taborek and Aubrey Pringle

Nov. 1 (Bloomberg) — U.S. stocks rose, halting the first two-day drop in the Standard & Poor’s 500 Index in three weeks, as optimism about corporate earnings offset concern that improving economic data could prompt the Federal Reserve to trim stimulus.

First Solar Inc. rallied 18 percent after the largest U.S. solar-panel manufacturer said third-quarter profit almost doubled. American International Group Inc. lost 6.5 percent after premium revenue fell at its property-casualty division.

Chevron Corp. slid 1.6 percent as it reported profit below estimates as weaker refining margins eroded gains from higher commodity prices and output from wells.

The S&P 500 climbed 0.3 percent to 1,761.64 at 4 p.m. in New York, after earlier falling as much as 0.2 percent. The equity gauge advanced 0.1 percent in the past five days, its fourth straight weekly gain. The Dow Jones Industrial Average rose 69.80 points, or 0.5 percent, to 15,615.55 today. About 6.8 billion shares changed hands on U.S. exchanges, 14 percent above the three-month average.

“Earnings drive the market, and earnings have been good,” Richard Sichel, the chief investment officer at Philadelphia Trust Co., where he helps oversee $1.9 billion, said by phone.

“Economic growth is slow but going in the right direction. Stocks definitely have shown that they’re the best place to be, and that can continue in spite of things going on in Washington.”

Better-than-forecast corporate results and Fed stimulus have helped the S&P 500 rally 24 percent this year as it challenges 2009 for the best annual gain in the past decade. The gauge jumped 4.5 percent in October for the biggest advance in three months and closed at a record Oct. 29.

Of the 368 S&P 500 companies that have reported results for the third quarter, 75 percent exceeded analysts’ predictions for profit, while 53 percent beat sales estimates, data by Bloomberg showed. Profits for members of the gauge probably increased 4.1 percent in the period as sales climbed 2.9 percent, according to analysts’ estimates compiled by Bloomberg.

Investors continued to shift money into stocks last month, as U.S. equity exchange-traded funds drew $18.2 billion in October, the most in three months and the third-highest amount since 2010, according to Bloomberg data. About $110.6 billion has been absorbed this year, putting the stock ETFs on pace for the highest flows since the records began in 2000.

Equities turned lower earlier today after improving manufacturing data raised concern that the Fed will cut its $85 billion in monthly bond buying sooner than expected. The Institute for Supply Management’s factory index rose at a faster pace than forecast in October, indicating U.S. manufacturing was a source of strength. An earlier report from China indicated the nation’s official manufacturing Purchasing Managers’ Index rose more than estimated in last month.

“There’s some concern clearly that the economic data is getting better and we might get tapering in December,” Eric Green, director of research and fund manager at Penn Capital Management, said by phone. The Philadelphia-based firm oversees about $7 billion. “As you get positive economic data points, those that were concerned about the taper get more concerned.”

Fed policy makers this week said the economy showed signs of “underlying strength” even as the bank maintained the pace of stimulus while awaiting further signs growth is strong enough to bring down 7.2 percent unemployment. Economists in a Bloomberg survey project that tapering will begin in March, based on the median estimate.

The data today came amid concern the 16-day U.S. government shutdown last month may have slowed growth in the fourth quarter. The economy will probably expand at a 2 percent annualized rate in the final three months of the year, less than economists projected at the start of the federal closure. The median projection of 71 economists surveyed by Bloomberg yesterday compares with a 2.4 percent forecast in an Oct. 4-9 survey.

Fed Bank of St. Louis President James Bullard said gains in the labor market since September 2012 could warrant a cut in the Fed’s monthly bond purchases. Charles Plosser, president of the Philadelphia Fed who has opposed the central bank’s current round of stimulus, said inflation will be a concern as the Fed unwinds its balance sheet.

The S&P 500’s rally has left the index trading at 15.9 times its companies’ estimated earnings, after slipping from the highest valuation since the start of 2010, according to data compiled by Bloomberg.

“We have gotten pretty overbought and we were due for some pause, which is what we have been getting since the Fed statement,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in an interview. “The market continues to be sloppy since.”

The Chicago Board Options Exchange Volatility Index, the gauge known as VIX that measures options traders’ estimate of future price swings in S&P 500, slid 3.4 percent, halting a four-day rally. The gauge dropped 17 percent in October.

Seven out of 10 main industries in the S&P 500 advanced today, as industrial stocks and utilities rose at least 0.7 percent to pace gains. Boeing Co. jumped 1.9 percent to a record $133.03 for the biggest gain in the Dow.

First Solar rallied 18 percent to $59.14 as sales of power plants and revenue from new projects boosted profit. Net income rose to $195 million, or $1.94 a share, from $87.9 million, or $1, a year earlier, according to a statement late yesterday. Analysts on average had predicted earnings of 83 cents.

J.C. Penney Co. advanced 8.5 percent to $8.14, a one-month high. ITG Investment Research analyst John Tomlinson boosted his third-quarter revenue estimate, citing “improved sales trends.”

Netflix Inc. rose 2.1 percent to $329.27. The online video- streaming service was upgraded to outperform from neutral at Robert Baird & Co.

Chevron slid 1.6 percent to $118.01. The second-largest U.S. energy producer by market value said profit from processing crude oil into fuels tumbled 45 percent during the third quarter to $380 million amid rising feedstock costs and repairs at a California plant that crimped gasoline and diesel output. The refining slowdown overshadowed a 2.7 percent rise in oil and gas production led by fields from Kazakhstan to Pennsylvania.

Energy companies lost 0.3 percent for the steepest decline among S&P 500 groups, as crude fell below $95 a barrel for the first time since June.

AIG, the insurer that repaid a U.S. rescue last year, declined 6.5 percent to $48.28, headed for the lowest close in a year. Premium revenue at the property-casualty division fell 3.7 percent to $8.43 billion in the third quarter, the company said in a statement late yesterday. Third-quarter net income rose to $2.17 billion, or $1.46 a share, from $1.86 billion, or $1.13 a year earlier, New York-based AIG said.

Tower International Inc., a maker of metal components for the automotive industry, fell 5.1 percent to $20.14 after saying an affiliate of Cerberus Capital Management LP plans to sell about 2.6 million shares in the company.

 

Have a wonderful weekend everyone!!

 

Be magnificent!

 

“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something – your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.” – Steve Jobs

As ever,

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Dear Friends,

Tangents:

HAPPY HALLOWEEN !!!

 

Photos of the day

The Witch Head nebula, named after its resemblance to the profile of a witch, is seen in an undated infrared photo from NASA’s Wide-field Infrared Survey Explorer (WISE). Astronomers say the billowy clouds of the nebula, where baby stars are brewing, are being lit up by massive stars. Dust in the cloud is being hit with starlight, causing it to glow with infrared light, which was picked up by WISE’s detectors. Courtesy of NASA/JPL-Caltech/Reuters

A costumed character referred to as the ‘Headless Horseman’ is seen at the start of the haunted trail known as the ‘Horseman’s Hollow’ on the grounds of the historic Philipsburg Manor in celebration of Halloween in Sleepy Hollow, New York October 25th. Sleepy Hollow, located on the eastern bank of the Hudson River about 30 miles north of Midtown Manhattan, is best known to many through American author Washington Irving’s story ‘The Legend of Sleepy Hollow.’ Adrees Latif/Reuters

Market Closes for October 31^st, 2013

Market  Index	Close	Change
Dow  Jones	15545.75	-73.01    -0.47%
S&P 500	1756.54	-6.77    -0.38%
NASDAQ	3919.706	-10.914    -0.28%
TSX	13361.26	-94.07
		-0.70%

International Markets

Market  Index	Close	Change
NIKKEI	14327.94	-174.41
		-1.20%
HANG  SENG	23206.37	-97.65
		-0.42%
SENSEX	21164.52	+130.55
		+0.62%
FTSE 100	6731.43	-46.27
		-0.68%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.424	2.421
CND.   30 Year Bond	3.014	3.015
U.S.   10 Year Bond	2.5542	2.5342
U.S.   30 Year Bond	3.6386	3.6403

Currencies

BOC Close	Today	Previous
Canadian $	0.95840	0.95466
US   $	1.04341	1.04749
Euro Rate  1 Euro=		Inverse
Canadian   $	1.41778	0.70533
US  $	1.35880	0.73594

Commodities

Gold	Close	Previous
London Gold   Fix	1323.10	1344.60
Oil	Close	Previous
WTI Crude Future	96.38	96.77
BRENT	109.360	109.360

Market Commentary:

Canada

By Aubrey Pringle

Oct. 31 (Bloomberg) — Canadian stocks fell, trimming the benchmark gauge’s best monthly gain in two years, as miners dropped on concern the Federal Reserve may taper stimulus sooner than anticipated and investors assessed corporate results.

Endeavour Silver Corp. and China Gold International Resources Corp. each dropped more than 7 percent as prices for the precious metals retreated. Valeant Pharmaceuticals International Inc. sank 3.7 percent after lowering its full-year revenue forecast. Bombardier Inc. slid the most in more than four years after posting a quarterly profit that missed analysts’ estimates.

The Standard & Poor’s/TSX Composite Index lost 94.07 points, or 0.7 percent, to 13,361.26 at 4 p.m. in Toronto. The benchmark Canadian equity gauge rose 4.5 percent in October to cap its fourth straight monthly gain.

“There’s a slight possibility they could start tapering off a little bit in December, so the market is reacting negatively to that,” Paul Gardner, portfolio manager at Avenue Investment Management, said by phone from Toronto. He helps manage C$300 million ($290 million). “Earnings season is decent. Nothing stellar but nothing horrible.”

The U.S. central bank yesterday maintained $85 billion in monthly bond purchases, saying that while the economy shows signs of “underlying strength” it needs to see more evidence of sustainable improvement before scaling back.

Economists at Citigroup Inc. and Barclays Plc said yesterday’s policy statement opens the possibility of reduced bond purchases as soon as December. The odds of a taper in January rose to 45 percent, from 25 percent before the decision, according to Citigroup. Economists surveyed by Bloomberg Oct. 17-18 had predicted the Fed would pare stimulus in March.

In Canada, gross domestic product grew faster than economists forecast in August on record extraction of oil and natural gas. Output is on pace to quicken to about a 2.5 percent annualized pace this quarter according to economists at CIBC World Markets and TD Securities, the fastest since a 6.2 percent gain two years ago.

The Bank of Canada last week predicted third-quarter growth at a 1.8 percent pace, after it slowed to 1.7 percent in the April-to-June period on energy exports and business investment.

Nine of 10 industries in the benchmark gauge declined. The S&P/TSX Materials Index plunged 2.9 percent, the most in six weeks, as the price of gold headed for the biggest loss in almost three weeks and silver slumped the most in more than a month.

Endeavour Silver plunged 8.3 percent to C$4.33, its biggest drop in more than a month, and China Gold fell 7 percent to C$2.80, pacing declines among mining companies.

Barrick Gold Corp. fell 5.8 percent to C$20.28. The company said it will temporarily suspend construction at its $8.5 billion Pascua-Lama mine on the Argentina-Chile border as the world’s largest gold producer tries to conserve cash after prices slumped. The miner also reported quarterly results that topped estimates.

After the market closed, Barrick said it will sell about $3 billion in shares and use the proceeds to pay down debt.

Barrick was among 14 members of the S&P/TSX scheduled to report third-quarter results today.

Valeant Pharmaceuticals dropped 3.7 percent to C$110.15, the biggest drop since August. Canada’s largest pharmaceutical company now expects full-year revenue of as much as $5.59 billion. Its prior forecast topped out at $6.2 billion.

Bombardier slid more than 10 percent to C$4.74, its steepest slide since March 2009. The world’s third-largest planemaker delivered fewer aircraft and collected less revenue in the last quarter.

First Quantum Minerals Ltd. added 2.3 percent to C$19.78, the highest level since March. The miner said third-quarter production beat estimates and raised the upper end of its estimated gold production for 2013. The company lowered its expected cost of production for copper and nickel.

Stantec Inc. jumped 6.6 percent, the most in the benchmark index, to a record C$61.96. The engineering services firm’s earnings and revenue topped analyst estimates.

Methanex Corp. climbed 4.4 percent to C$60.47. The methanol maker reported higher earnings and said demand for its products remains “healthy.”

US

By Nick Taborek

Oct. 31 (Bloomberg) — U.S. stocks fell, giving the Standard & Poor’s 500 Index its first two-day slide in three weeks, on speculation the Federal Reserve will scale back stimulus in coming months as investors assessed earnings.

Visa Inc. lost 3.5 percent as the bank-card network said revenue rose less than projected. Avon Products Inc. fell 22 percent after saying possible fines related to foreign bribery probes may hurt earnings. Facebook Inc. and Exxon Mobil Corp. jumped more than 0.9 percent after earnings topped estimates.

Boeing Co. advanced 0.6 percent after saying it would step-up production of its 737 jets.

The S&P 500 dropped 0.4 percent to 1,756.54 at 4 p.m. in New York, after fluctuating between gains and losses during the day. The Dow Jones Industrial Average fell 73.01 points, or 0.5 percent, to 15,545.75. About 7.2 billion shares changed hands on U.S. exchanges, 21 percent above the three-month average.

“The market is re-rating expectations to maybe earlier Fed tapering than consensus,” Andres Garcia-Amaya, New York-based global market strategist at JPMorgan Chase & Co.’s mutual funds unit, said in a phone interview today. His firm oversees $400 billion. “The Fed was a little bit more hawkish than people expected, not a lot, but incrementally more hawkish.”

The S&P 500 fell 0.5 percent from a record yesterday, halting four days of gains, as the Fed fueled bets it may begin to cut stimulus in the coming months. The central bank maintained $85 billion in monthly bond purchases, saying that while the economy shows signs of “underlying strength” it needs to see more evidence of sustainable improvement.

Economists at Citigroup Inc. and Barclays Plc said yesterday’s Fed policy statement opens the possibility of reduced bond purchases as soon as December. The odds of a taper in January rose to 45 percent, from 25 percent before the decision, according to Citigroup. Economists surveyed by Bloomberg Oct. 17-18 had predicted the Fed would begin paring stimulus in March.

“We don’t expect anything really before the March time frame,” David Roda, the Miami-based regional chief investment officer for Wells Fargo Private Bank, said in a phone interview.

His firm manages $170 billion. “Even though the jobs data is slowly improving, the pace of improvement has slowed and the quality of job growth is certainly not that great.”

Fed stimulus has helped propel the S&P 500 higher by more than 160 percent from a 12-year low in 2009. The gauge surged 4.5 percent in October, for the biggest monthly gain since July, as lawmakers ended a 16-day government shutdown and agreed to extend the U.S. borrowing authority, avoiding a possible debt default.

Stocks slumped earlier today after a report showed business activity in the U.S. expanded in October as orders and production surged. The MNI Chicago Report business barometer jumped to 65.9 from 55.7 in September, the biggest monthly increase in more than three decades. Readings above 50 signal expansion.

Separate data showed fewer Americans filed applications for unemployment benefits last week as a backlog in California’s reporting cleared.

The Chicago Board Options Exchange Volatility Index, the gauge known as VIX that measures options traders’ estimate of future price swings in the S&P 500, rose 0.7 percent to 13.75.

The gauge lost 17 percent for the month.

The S&P 500 is trading at 15.9 times its companies’ estimated earnings, the highest valuation since the start of 2010, according to data compiled by Bloomberg.

Two of America’s best known investors are moving in opposite directions in the stock market, with Laszlo Birinyi predicting more gains as David Einhorn takes a more cautious approach.

“As the market continued its relentless climb, we’ve become more conservatively positioned,” hedge-fund manager Einhorn said today on a conference call.

Long positions, which gain on rising asset prices, exceeded short bets by 35 percentage points as of Sept. 30 at Greenlight Capital Re Ltd., the Cayman Islands-based reinsurer where Einhorn oversees investments and serves as chairman. That’s down from about 42 percentage points three months earlier, said Einhorn, who gained fame for betting on a decline in Lehman Brothers Holdings Inc. stock before it collapsed in 2008.

Birinyi, president of Birinyi Associates Inc., raised his forecast for the S&P 500, predicting a 3.2 percent advance to 1,820 in the next three months.

Birinyi, one of the first money managers to advise clients to buy in 2009, said he purchased calls on an exchange-traded fund tracking the S&P 500, according to a report today. His previous forecast for the U.S. equity benchmark, set Sept. 25, was 1,760.

Exxon, MasterCard and American International Group Inc. are among 34 companies in the S&P 500 reporting results today. Of the 364 companies that have reported results this season, 75 percent exceeded analysts’ predictions for profit, while 53 percent beat sales estimates, data compiled by Bloomberg showed.

Profits for members of the gauge probably increased 3.7 percent in the third quarter as sales climbed 2.4 percent, according to analysts’ estimates compiled by Bloomberg. Analysts project earnings will rise 7.5 percent in the final quarter, and 8.3 percent in the first three months of 2014.

Nine out of 10 main groups in the S&P 500 fell today, as financial shares slid 1.1 percent for the biggest decline.

Consumer-discretionary companies added 0.2 percent as a group.

Visa lost 3.5 percent to $196.67 for the largest decline in the Dow. Fourth-quarter net operating revenue rose 8.9 percent to $2.97 billion, missing the $3.02 billion average estimate of analysts in a Bloomberg survey.

Avon tumbled 22 percent, the most since 1999, to $17.50.

The world’s largest door-to-door cosmetics seller posted a third-quarter net loss, while its profit excluding some items fell short of analyst estimates.

Avon and the government have investigated whether former employees in China and other countries bribed officials in violation of the Foreign Corrupt Practices Act. The Securities and Exchange Commission offered a settlement last month with monetary penalties that were “significantly greater” than the $12 million the company had offered, Avon said in a filing today.

Computer Sciences Corp. lost 4.5 percent to $49.26. The provider of technology consulting to governments and companies signaled that a probe by the SEC is escalating.

As part of an almost three-year investigation by the SEC, former U.S. executives, along with some current employees outside the country, have received Wells notices from the commission, CSC said today in a filing. The SEC sends a Wells notice to notify that investigators may recommend an enforcement action.

JDS Uniphase fell 11 percent to $13.09. The provider of network analytics for the telecommunications and broadband industries was cut to hold from buy at Jefferies by equity analyst James Kisner after forecasting sales below analyst estimates for this quarter.

Exxon rose 0.9 percent to $89.62 for the biggest gain in the Dow. The largest oil company by market value lifted production for the first time in more than two years and reported third-quarter profit that beat analyst estimates.

Facebook advanced 2.4 percent to $50.21, reversing a decline of as much as 5.1 percent, after the operator of the world’s largest social network yesterday reported third-quarter profit that beat analyst estimates.

The shares slid earlier after Facebook said younger teens aren’t using its website as much as they used to and it will limit its news feed advertisements that have driven revenue gains.

Pivotal Research Group LLC upgraded the shares to buy from hold, saying Facebook retains its advantage in ad sales and the negative reaction to comments about lower teen use was overdone.

Boeing gained 0.6 percent to $130.50. The world’s largest plane-maker plans to speed the monthly production tempo of its best-selling 737 jets by 24 percent to 47 a month by 2017, the highest rate ever.

Expedia Inc. rallied 18 percent to $58.97. Adjusted earnings were $1.43 per share in the third quarter, the online travel company said in a statement, more than the $1.36 predicted by analysts.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

In all religions of the world you will find it claimed that there is unity within us.

Being one with divinity, there cannot be any further progress in that sense.

Knowledge means finding this unity.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

Three passions, simple but overwhelmingly strong, have governed my life:

the longing for love, the search for knowledge, and unbearable pity for

the suffering on mankind.

-Bertrand Russell, 1872-1970.

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7