Month: July 2014

Dear Friends,

Tangents:

On this day in…
1929- Anne Frank was born.

George Beardmore wrote in his Journal on June 12^th, 1944:

Other side-effects of bombs are the stripping of leaves from wayside trees, the deaths by blast of sparrows, chaffinches etc., and the awful things that happen to cats and dogs.  We had a man complain that thirty of his forty-odd small birds in a  backyard aviary had been killed by blast, half a mile or so away from where the bomb landed.

Also on this day in 1939, Major League Baseball’s Hall of Fame opened in Cooperstown, N.Y.
Baseball is 90% mental; the other half is physical.   –Yogi Berra.

Numbers:
100: Number of starlings, in millions, released into Central Part in 1890 -91 by Eugene Schlieffelin, a Shakespeare devotee.
200: Number of starlings, in millions, descended from those birds.  They range from Mexico to Alaska.

Photos of the day

Four-month-old female orangutan Olivia plays with wood wool during warm and sunny weather in their enclosure at the Hellabrunn zoo in Munich, southern Germany. Rebecca Krizak/dpa/AP

Ryan Hakik attends the 2014 Electronic Entertainment Expo, known as E3, in Los Angeles, Calif., June 11. Jonathan Alcorn/Reuters

Which hair-do do you like better?  🙂

Market Closes for June 12^th, 2014

Market   Index	Close	Change
Dow   Jones	16734.19	-109.69
		-0.65%
S&P 500	1930.11	-13.78    -0.71%
NASDAQ	4297.633	-34.299    -0.79%
TSX	14909.63	+17.50
		+0.12%

International Markets

Market   Index	Close	Change
NIKKEI	14973.53	-95.95
		-0.64%
HANG   SENG	23175.02	-82.27
		-0.35%
SENSEX	25576.21	+102.32
		+0.40%
FTSE 100	6843.11	+4.24
		+0.06%

Bonds

Bonds	% Yield	Previous % Yield
CND.   10 Year Bond	2.316	2.342
CND.   30 Year Bond	2.837	2.863
U.S.   10 Year Bond	2.5951	2.6376
U.S.   30 Year Bond	3.4101	3.4642

Currencies

BOC Close	Today	Previous
Canadian $	0.92118	0.92000
US   $	1.08557	1.08696
Euro Rate   1 Euro=		Inverse
Canadian   $	1.47091	0.67985
US   $	1.35496	0.73803

Commodities

Gold	Close	Previous
London Gold   Fix	1273.03	1260.54
Oil	Close	Previous
WTI Crude Future	106.53	104.40
BRENT	109.360	109.360

Market Commentary:

Canada
By Gerrit De Vynck

June 12 (Bloomberg) — Canadian stocks rose for the ninth time in 10 days as gains among energy and materials producers offset losses in financial and telephone shares.

Surge Energy Inc. and Lightstream Resources Ltd. rose at least 4 percent to pace gains among oil and gas companies.
Financial companies fell for a second day after Moody’s Investors Service cut its ratings on six of the country’s biggest banks.

The Standard & Poor’s/TSX Composite Index rose 17.5 points, or 0.1 percent, to 14,909.63 at 4 p.m. in Toronto. The benchmark equity gauge is about 1.1 percent away from a record high.

Prices for benchmark Brent and West Texas Intermediate oil rose at least 2 percent to eight-month highs after fighters linked to al-Qaeda extended their control over parts of northern Iraq. The country is the second-largest producer in OPEC.

Materials companies rose 1.3 percent as a group, the most out of 10 industries on the S&P/TSX. Energy companies rose 1.3 percent as six of the other eight industries fell. Surge Energy increased 4 percent to C$7.59 and Lightstream gained 6.7 percent to C$8.64.

Transat A.T. Inc., which sells travel packages and operates an airline, gained 6.5 percent to C$8.90. The Montreal-based company reported a second-quarter adjusted loss of 19 Canadian cents, less than the average analyst estimate of 34 Canadian cents.

Dollarama Inc. fell 2.7 percent to C$92.65 after the discount retailer missed first-quarter revenue estimates. The company said in a statement it may buy back up to 3.5 percent of its outstanding shares.

Industrial Alliance Insurance and Financial Services Inc. rose 5 percent to C$46.04 after analysts at Desjardins Securities Inc., National Bank Financial and RBC Capital Markets all raised their ratings on the stock.

US
By Oliver Renick and Mark Shenk

June 12 (Bloomberg) — U.S. stocks retreated, with the Standard & Poor’s 500 Index falling the most in three weeks, as industrial and consumer-discretionary shares plunged after escalating violence in Iraq sent oil to an eight-month high while economic data missed estimates.

Delta Air Lines Inc. fell the most in the benchmark index and United Continental Holdings Inc. plunged 5.9 percent to lead industrial stocks lower. The Dow Jones Transportation Average retreated the most in two months as oil prices rose to an eight- month high. Diamond Offshore Drilling Inc. and Noble Corp. climbed at least 3.2 percent as oil and gas companies rallied. Intel Corp. jumped 3.8 percent in extended trading after boosting its full-year revenue target.

The S&P 500 fell 0.7 percent to 1,930.11 at 4 p.m. in New York, giving the index its longest losing streak in two months. The Dow Jones Industrial Average slid 109.69 points, or 0.7 percent, to 16,734.19. The Nasdaq Composite Index lost 0.8 percent, the  most in a month.

“This is a major geopolitical event for the oil market,” said John Kilduff, a partner at Again Capital LLC, a New York- based hedge fund that focuses on energy. “Iraq had been a bright spot ramping up production and now we’re in the midst of a very ugly conflict.”

A surge in violence across northern and central Iraq, three years after U.S. troops withdrew, has raised the prospect of a return to sectarian civil war in OPEC’s second-biggest oil producer. Iraqi forces sought to check the rapid advance of Islamist militants who had seized major cities, as Prime Minister Nouri al-Maliki responded to the greatest threat to his government since taking power. President Barack Obama said he won’t rule out using airstrikes to assist Iraq’s government.

The S&P 500 lost 0.4 percent yesterday and the Dow average halted a five-day rally as the World Bank cut its forecast for global growth and investors weighed equity valuations. The broader index trades at 16.4 times forecast earnings, up from a multiple of 14.8 at the beginning of February. The gauge had closed at a record for four straight sessions through June 10.

Retail sales rose 0.3 percent in May as American consumers took a respite following a three-month surge in shopping. The gain followed a revised 0.5 percent gain in April that was much larger than previously estimated, Commerce Department figures showed. The median forecast of 83 economists surveyed by Bloomberg called for a 0.6 percent advance.

A separate report indicated applications for unemployment benefits in the U.S. rose to 317,000 last week. The median forecast of 52 economists surveyed by Bloomberg called for 310,000. Claims have averaged around 324,000 so far in 2014.

“There is some indication that the economy continues to move forward in a fairly measured fashion,” Rob Lutts, chief investment officer at Salem, Massachusetts-based Cabot Money Management Inc., said in a phone interview. He oversees $600 million of assets. “I think this perpetuates the worry that investors have today. What they want is that clear blue sky economic condition, and we don’t have that.”

The S&P 500 advanced 7.1 percent through yesterday since a low on April 11 as data showed the U.S. economy is recovering from the impact of extreme weather earlier this year. The Federal Reserve is watching the labor market as it moves to complete a monthly stimulus program late this year. Three rounds of bond buying have helped propel the S&P 500 higher by as much as 188 percent from its bear-market low in March 2009.

The Chicago Board Options Exchange Volatility Index rose 8.1 percent to 12.54, a three-week high. The gauge, known as the VIX, trades at the highest since May 15 on a closing basis.

Eight of the 10 main S&P 500 groups retreated, with industrial and consumer-discretionary stocks losing 1.3 percent to pace declines. Caterpillar Inc. dropped 1.9 percent and Disney Co. fell 1.8 percent.

The Dow Jones Transportation Average sank 2 percent, the most since April, as West Texas Intermediate crude jumped 2 percent, the most since Sept. 18. Delta sank 5.4 percent, the most since August, while United Continental lost 5.9 percent and Southwest Airlines Co. dropped 4.5 percent.

Energy producers in the S&P 500 added 0.3 percent. Noble, a contract-drilling company, rallied 3.1 percent, and Diamond Offshore jumped 3.3 percent to pace gains. Chevron Corp. climbed 0.7 percent, the most in the Dow.

Lululemon Athletica Inc. declined 16 percent to $37.25, the lowest since March 2011. The athletics-apparel retailer forecast full-year earnings of as much as $1.76 a share, down from an earlier prediction of as much as $1.90. The forecast also fell short of analyst estimates calling for $1.89.

Keurig Green Mountain Inc. advanced 4.1 percent to $120.75 for the biggest gain in the S&P 500. The company said yesterday it is “committed” to returning more cash to investors.

Restoration Hardware Holdings Inc. rallied 13 percent to a record $80.40. The home-furnishings chain boosted its forecast for full-year profit to at least $2.24 a share, after predicting in March no more than $2.22. Analysts estimate earnings will be $2.21. The Corte Madera, California-based company also raised its outlook for revenue.

Intel added jumped 3.8 percent to $29.01 in extended trading after closing little changed in the regular session. The world’s largest computer-chipmaker raised its forecast for second-quarter revenue as demand for corporate personal computers picks up.

 

Have a wonderful evening everyone.

 

Be magnificent!

We are fragmented.  We are one person at the office another at home,

we speak of democracy and are autocrats in our hearts;

we speak of love for our neighbors even as we kill that love with our competitive spirit;

one part of us works, watches, and acts independently of the other.

Are you conscious of the fragmentation of your existence? Is it possible for a mind

that has splintered the structure of its thoughts to perceive the broad field of consciousness?

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

Luck is what you have left over after you give 100 percent.

-Langston Coleman

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:

BEE-AUTIFUL PORTRAITS

If you appreciate flowers in your garden or fresh vegetables every spring and summer, now you can get a close-up look at the bees that help to make them bloom.  Am Droege, head of the bee inventory and monitoring program at the US Geological survey, and a team of colleagues have figured out how to take detailed photographs of the more than 4,000 species of bees that live in North America.  Check out Droege’s photos on Flickr (http://bit.ly/BeeHeadshots) and read more about their work in National Geographic (http://bit.ly/NatGeobees).

Photos of the day

A monkey cools off in a water tub on the premises of a Hindu temple on a hot summer afternoon in Jammu, India. Severe heat conditions are prevailing across northern India with temperatures soaring past 45 degrees Celsius (113 Fahrenheit) at several places. Channi Anand/AP

A man fishes for striped bass on the mud shores of the Stewiacke River in Stewiacke, Nova Scotia, Canada. The striped bass is a coastal species found in rivers, estuaries, and inshore waters of eastern North America and can weigh over 50 kilograms. Andrew Vaughan/The Canadian Press/AP

Market Closes for June 11^th, 2014

Market Index	Close	Change
Dow Jones	16843.88	-102.04
		-0.60%
S&P 500	1943.89	-6.90   -0.35%
NASDAQ	4331.934	-6.063   -0.14%
TSX	14892.13	-12.25
		-0.08%

International Markets

Market Index	Close	Change
NIKKEI	15069.48	+74.68
		+0.50%
HANG SENG	23257.29	-58.45
		-0.25%
SENSEX	25473.89	-109.80
		-0.43%
FTSE 100	6838.87	-34.68
		-0.50%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.342	2.347
CND. 30 Year Bond	2.863	2.864
U.S. 10 Year Bond	2.6376	2.6439
U.S. 30 Year Bond	3.4642	3.4779

Currencies

BOC Close	Today	Previous
Canadian $	0.92000	0.91710
US $	1.08696	1.09039
Euro Rate 1 Euro=		Inverse
Canadian $	1.47098	0.67982
US $	1.35330	0.73893

Commodities

Gold	Close	Previous
London Gold Fix	1260.54	1260.26
Oil	Close	Previous
WTI Crude Future	104.40	104.35
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam

June 11 (Bloomberg) — Canadian stocks fell for the first time in nine days as the nation’s largest lenders dropped after Moody’s Investors Service cut its credit outlook for the banks.

Bank of Montreal and Royal Bank of Canada both lost 0.5 percent as Moody’s cut the outlook for the nation’s seven largest banks to negative due to rules that would limit government support. Sherritt International Corp. slumped 3.9 percent as nickel fell in London to the lowest in almost four weeks. AuRico Gold Inc. and Argonaut Gold Inc. jumped more than 6.7 percent to pace gains among gold producers.

The Standard & Poor’s/TSX Composite Index fell 12.25 points, or 0.1 percent, to 14,892.13 at 4 p.m. in Toronto. The benchmark equity gauge is 1.2 percent away from its record closing high of 15,073.13 on June 18, 2008. The price-to- earnings ratio for the benchmark equity gauge is 19.9, the highest since 2011.

Bank of Montreal dropped 0.5 percent to C$76.81 and Royal Bank of Canada declined 0.5 percent to C$74.84 as financial companies slipped 0.4 percent as a group. Five of 10 industries in the S&P/TSX retreated on trading volume about 10 percent higher compared with the 30-day average.

Moody’s today changed its outlook for the nation’s largest lenders to negative from stable. In a statement, the credit ratings company said “balance of risk for the Canadian banks’ senior debt holders and uninsured depositors has shifted to the downside” as a result of pending government legislation that will probably shift the burden of bank bailouts to bondholders.

Oryx Petroleum Corp., which explores for oil in Africa and the Middle East, sank 3.5 percent to C$13.51 as Iraqi forces fought a breakaway al-Qaeda group across northern and central Iraq for control of a region that’s home to a key oil refinery.

USA

By Oliver Renick

June 11 (Bloomberg) — U.S. stocks fell the most in three weeks, with the Dow Jones Industrial Average halting a five-day rally, as the World Bank cut its forecast for global growth and Boeing Co. sank.

The world’s largest plane maker dropped the most in two months after U.S. House Majority Leader Eric Cantor’s defeat in a primary election threatened congressional reauthorization of low-cost lending that benefits the company. Bank of America Corp. dropped 2.1 percent after a report said the Justice Department may seek $17 billion to settle probes into mortgage lending. Anadarko Petroleum Corp. rose to a record amid speculation of a takeover. H&R Block Inc. added 4.6 percent after reporting sales that topped analysts’ forecasts.

The Standard & Poor’s 500 Index declined 0.4 percent to 1,943.89 at 4 p.m. in New York, the most since May 20. The Dow average retreated 102.04 points, or 0.6 percent, to 16,843.88, ending a streak that pushed it to an all-time high. About 5.2 billion shares changed hands on U.S. exchanges today, 17 percent below the three-month average at this time of day.

“That negative movement is the World Bank adding pressure with concerns about growth,” Robert Pavlik, chief market strategist at Banyan Partners LLC in New York, said in a phone interview. Pavlik helps oversee $4.5 billion. “People are tentative with a market that’s trading near all-time highs with low growth prospects.”

Cantor lost to a Tea Party-backed candidate in last night’s Virginia primary, fueling concern about further gridlock in Washington. The defeat could also have long-range market repercussions, as the seven-term House veteran was an ally for Wall Street on issues ranging from the 2008 Troubled Asset Relief Program to defending the Export-Import Bank.

“There were very few folks who expected this,” Michael Block, chief strategist at New York-based Rhino Trading Partners LLC, said in an interview. “I’m not concerned about the debt ceiling but some are and I will say Cantor was good at finding compromises relative to the rest of the party.”

Since Republicans took control of the House in 2011, debates over the debt limit — the total amount of money the U.S. government can borrow to finance existing obligations such as Social Security and Medicare — led to eleventh-hour showdowns that raised concerns that the government could default on its obligations, roiling financial markets. Congress voted in February to suspend the limit until March 15, 2015.

Cantor’s defeat raises concerns about the future of political compromise, Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said.

“I hope it doesn’t mean that it will be impossible from this point forward to compromise on issues like the budget, immigration policy,” Blankfein said in a television interview with CNBC today. “This is not necessarily a good signal but we’ll have to see how this plays out.”

The S&P 500 slipped less than one point yesterday, halting a four-day rally, as investors considered equity valuations. The gauge trades at 16.4 times the projected earnings of its members, up from a multiple of 14.8 at the beginning of February. The index has advanced 7.1 percent through yesterday since a low on April 11.

The World Bank forecast in a report that the global economy will expand 2.8 percent this year, down from a January projection of 3.2 percent. The lender predicted slower growth for the U.S., China, Russia, India and Brazil. It left the estimate for world growth in 2015 unchanged at 3.4 percent.

The Chicago Board Options Exchange Volatility Index rose 5.7 percent to 11.62. The gauge, known as the VIX, dropped 5.9 percent last week to 10.73, the lowest level since February 2007.

Nine of the 10 main S&P 500 groups retreated, with industrial and utility stocks losing at least 0.8 percent to pace declines.

Boeing slid 2.3 percent to $134.10 for the biggest drop in the Dow. The planemaker is the “biggest loser” other than Cantor in last night’s primary, Chris Krueger, a senior policy analyst for Guggenheim Securities LLC, said, as the defeat imperils financing for the Export-Import Bank. Boeing said last month the lender would support $10 billion in sales this year.

Bank of America sank 2.1 percent to $15.59. The U.S. Justice Department is seeking about $17 billion from Bank of America Corp. to settle probes into its handling of mortgages ahead of the financial crisis, the New York Times reported.

Hilton Worldwide Holdings Inc. slid 2.7 percent to $22.81 after registering to sell 90 million shares held by Blackstone Group LP. The world’s largest lodging company by market value has climbed 17 percent since raising $2.35 billion in its Dec. 11 initial public offering.

Orexigen Therapeutics Inc. dropped 15 percent to $5.81. The biopharmaceutical company said the Food and Drug Administration will take an additional three months to review its new weight- loss drug.

Anadarko Petroleum jumped 4.2 percent to $108.32, an all- time high. Theflyonthewall.com reported “renewed takeover chatter” today on the company.

CBS Corp. added 1.1 percent to $61.80. The owner of the most-watched television network said it will fully divest its 81 percent stake in CBS Outdoor Americas Inc. The company will offer shareholders the option to exchange CBS Class B stock for shares of CBS Outdoor stock at a 7 percent discount.

H&R Block rose 4.6 percent to $32.15, the highest since February. The biggest U.S. tax preparer said fiscal fourth- quarter profit climbed 35 percent as higher prices for its services and more online business boosted revenue.

Synaptics Inc. jumped 29 to a record $85.78 after agreeing to buy Renesas SP Drivers Inc., a maker of chips for smartphones and tablets. The provider of touch-screen technology said it will acquire Renesas within three to four months.

 

Have  a wonderful evening everyone.

 

Be magnificent!

Why is this division between man and man, between race and race, culture against culture,

one series of ideologies set one against another?   Why?

Why is there this separation?

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

I’ve learned that people will forget what you said, people will forget

what you did, but people will never forget how you made them feel.

-Maya Angelou, 1928-2014

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

The Bon Mot Book Club hosted an evening presentation last night with Steve Levitt, author of Freakonomics. His latest book is Think Like a Freak.  He talked about ideas from the book; I admit I haven’t had a chance to read it yet.…from the conversation with the audience during the Q & A, it seems like it contains some provocative points and interesting concepts.  He is an engaging thinker.

It was held at the Vancouver Club which has undergone a major dramatic facelift.  It is really quite impressive; I think they did a very good job of combining the old with the new.   I’ve stayed there many times when I visit clients in Vancouver and the old rooms transported one back a hundred years!  The renovated rooms are very nice –  even have air conditioning, flat screen TVs and beautiful bathrooms.  The room renovations are still ongoing , but there are a few completed, available now.  Ask for a suite on the fifth floor if you want to stay there.  There is a rooftop garden off the fifth floor.

June 10, 2007 – The final episode of “The Sopranos” aired on HBO

June 10, 1915 Saul Bellow was born in Quebec.

Photos of the day

Lightning strikes were seen from Algermissen in northern Germany, early Tuesday morning. Authorities say at least six people were killed in western Germany as heavy rains, hail, and high winds battered the region. Julian Stratenschulte/AP

A rooster has picked a strawberry at the zoo in Chemnitz, eastern Germany. Hendrik Schmidt/AP

Market Closes for June 10^th, 2014

Market   Index	Close	Change
Dow   Jones	16945.92	+2.82
		+0.02%
S&P 500	1950.79	-0.48    -0.02%
NASDAQ	4337.996	+1.753    +0.04%
TSX	14904.38	+33.17
		+0.22%

International Markets

Market   Index	Close	Change
NIKKEI	14994.80	-129.20
		-0.85%
HANG   SENG	23315.74	+198.27
		+0.86%
SENSEX	25583.69	+3.48
		+0.01%
FTSE 100	6873.55	-1.45
		-0.02%

Bonds

Bonds	% Yield	Previous % Yield
CND.   10 Year Bond	2.347	2.324
CND.   30 Year Bond	2.864	2.843
U.S.   10 Year Bond	2.6439	2.6095
U.S.   30 Year Bond	3.4779	3.4447

Currencies

BOC Close	Today	Previous
Canadian $	0.91710	0.91683
US   $	1.09039	1.09072
Euro Rate   1 Euro=		Inverse
Canadian   $	1.47704	0.67703
US   $	1.35460	0.73823

Commodities

Gold	Close	Previous
London Gold   Fix	1260.26	1253.12
Oil	Close	Previous
WTI Crude Future	104.35	104.41
BRENT	109.360	109.360

Market Commentary:

Canada
By Gerrit De Vynck

June 10 (Bloomberg) — Canadian stocks rose for an eighth day as gains among materials producers and consumer staples companies pushed the benchmark index closer to a record.

Silver Standard Resources Inc. and Torex Gold Resources Inc. rose at least 5.8 percent as the price of precious metals increased. Polaris Minerals Corp. fell 5.6 percent after saying it would sell C$15 million in new shares. Questerre Energy Corp. gained 10 percent as it began drilling a second well at its Kakwa-Resthaven property in Alberta.

The Standard & Poor’s/TSX Composite Index gained 33.17 points, or 0.2 percent, to 14,904.38 at 4 p.m. in Toronto. The gauge is fewer than 200 points away from an all-time high.

Gold futures added 0.6 percent to $1,260.80 an ounce in New York, while contracts for palladium, a metal used mainly in the auto industry, surged to the highest price in more than three years as strike talks in South Africa failed.

Silver Standard Resources climbed 5.8 percent to C$7.84 and Torex rallied 6.9 percent to C$1.40.

The gains helped materials companies rise 1.7 percent as a group, the most among 10 industries in the benchmark index.  Consumer staples companies gained 0.8 percent.

Potash Corp. of Saskatchewan Inc. added 1.6 percent to C$39.38. The chief executive officer of OAO Uralkali, the Russian producer that is the world’s largest, said he favors stable prices for the plant fertilizer.

Polaris Minerals fell 5.6 percent to C$2.71. The Vancouver- based miner said it will sell 5.9 million shares for C$2.57 each.

Questerre Energy increased 10 percent to C$1.40 after announcing it had begun drilling a second well and plans to drill two more in 2014 at the same block on its property in western Alberta.

Valeant Pharmaceuticals International Inc. fell 0.9 percent to C$136.78 after Allergan Inc. rejected the drug maker’s second takeover bid. Allergan said the offer undervalued the maker of Botox.

Software company Kinaxis Inc. closed at its opening price of C$13 on its first day of trading.

US
By Oliver Renick and Joseph Ciolli

June 10 (Bloomberg) — The Standard & Poor’s 500 Index slipped, halting a four-day streak of record closes, as investors weighed equity valuations. The Dow Jones Industrial Average closed at an all-time high.

EBay Inc. dropped 2.7 percent after saying David Marcus will step down as the head of its PayPal unit to join Facebook Inc. Facebook rallied 4.6 percent to the highest since March. RadioShack Corp. plunged 10 percent after reporting a wider quarterly loss. Molson Coors Brewing Co. jumped 5.4 percent for the biggest gain in the equities benchmark. Electronic Arts Inc. added 2.3 percent after disclosing release dates for new games.

The S&P 500 fell less than one point to 1,950.79 at 4 p.m. in New York, trimming an earlier decline of 0.3 percent. The Dow average added 2.82 points, or less than 0.1 percent, to 16,945.92, erasing earlier declines in the final hour of trading to extend a record. About 5.2 billion shares changed hands on U.S. exchanges, 17 percent below the three-month average.

“It shouldn’t be a shock to anyone that we’re seeing softness after a blistering recovery,” Chad Morganlander, a fund manager at Stifel Nicolaus & Co., which oversees $160 billion, from Florham Park, New Jersey, said in a phone interview. “This is a temporary reprieve from a market that’s being seeing highs.”

The S&P 500 has advanced 7.4 percent since a low on April 11 as data showed the U.S. economy is recovering from the impact of extreme weather earlier this year. The gauge rallied last week after the European Central Bank announced a stimulus package and American jobs data topped estimates.

The equities benchmark trades at 16.5 times the projected earnings of its members, up from a multiple of 14.8 times at the beginning of February. The gauge’s 14-day relative strength index was 73.7 yesterday, above the 70 reading that some investors see as a signal to sell.

Profit for companies on the gauge will probably climb 7.4 percent in 2014, analysts predict. That’s down from a January projection for growth of 9.7 percent. Sales probably gained 3.5 percent this year on average, according to estimates compiled by Bloomberg.

The S&P 500 has risen for nearly 32 months without a decline of 10 percent or more, versus the average of 18 months since 1945, according to data from S&P Capital IQ strategist Sam Stovall. In 2011, the S&P 500 index dipped as much as 19 percent from late April through early October, the closest the market’s come to ending the bull market that began in 2009.

Three rounds of Federal Reserve bond buying have helped propel the S&P 500 higher by as much as 188 percent from its bear-market low in March 2009.  Fed officials are watching the labor market as they move to complete the stimulus program late this year.

Data today showed U.S. wholesale inventories increased 1.1 percent in April, more than the 0.6 percent gain estimated by economists. A separate report showed job openings rose to 4.5 million in April from 4.17 million in March.

“When you look at the behavior of the market over the past 10 days, setting record after record, the bulls have clearly been in the lead,” Francois Savary, who helps oversee about $9.5 billion as chief investment officer at Reyl & Cie., said by phone from Geneva. “But even with improving economic data, I think that the U.S. market may have gone too far too fast, and I don’t see too much potential from here.”

The Chicago Board Options Exchange Volatility Index slipped 1.4 percent to 10.99. The gauge, known as the VIX, dropped 5.9 percent last week to 10.73, the lowest level since February 2007.

Six of the 10 main S&P 500 groups retreated today, with industrial and utility stocks dropping 0.3 percent to lead declines.

EBay dropped 2.7 percent to $48.25. Marcus, 41, is leaving PayPal on June 27, according to a statement yesterday from EBay.  He will lead Facebook Inc.’s mobile-messaging business, a spokeswoman at the social-network operator said. Facebook added 4.6 percent to $65.77, the highest since March 21.

Allergan Inc. slid 0.7 percent to $163.09 after the Botox maker’s board unanimously rejected a takeover offer from Valeant Pharmaceuticals International Inc. The board said the unsolicited proposal, with the backing of Pershing Square Capital Management LP, undervalues the company. Valeant shares dropped 0.9 percent for a sixth day of losses, the longest streak in two years.

RadioShack slid 11 percent to $1.38. The struggling electronics retailer reported a loss of $98.3 million last quarter and said sales slid for the ninth straight time.

Tyson Foods Inc. slid 3.8 percent to $36.07, capping a sixth day of losses, the longest streak since September. The largest U.S. meat company closed yesterday at the lowest since February after raising its offer for Hillshire Brands Co. to about $7.7 billion.

Urban Outfitters Inc. slid 3.7 percent to $33.39, snapping a five-day losing streak. The retailer said sales at stores open at least a year are unchanged so far in the second quarter compared to a year ago.

MetLife Inc. gained 0.7 percent to $55.05. The largest U.S. life insurer announced it will repurchase $1 billion of common stock in its first repurchase since 2008.

Receptos Inc. surged 37 percent to $39.94. A second-phase trial showed its RPC1063 treatment reduced brain lesions in patients with relapsing multiple sclerosis, according to a statement.

Molson Coors Brewing gained 5.4 percent to a record $70.71.  North America’s second-biggest beer company’s earnings gain of 83 percent in the first quarter was the most among 14 North American beverage peers, according to Bloomberg Industries.

Electronic Arts added 2.3 percent to $35.70, the highest since 2008. The company said its “Battlefield” game will be available in North America in October and customers can pre- order from GameStop Corp. starting today. The retailer’s shares added 2.1 percent to $37.29.

 

Have a wonderful evening everyone.

 

Be magnificent!

An individual is a separate entity without connection.

A person is an individual connected.

Swami Prajnanpad, 1891-1974

As ever,

 

Carolann

I feel that art has something to do with the achievement of stillness in the midst of chaos.

A stillness which characterizes prayer, too, and the eye of the storm.  I think that art has

something to do with an arrest of attention in the midst of distraction.

-Saul Bellow, 1915-2005

 

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