Month: September 2014

Dear Friends,

Tangents:

Caught the first Canadian concert for Tom Petty and the Heartbreakers current tour in Vancouver last night.  They were playing at Roger’s Arena and  confirmed their status as Rock n’ Roll royalty playing for an enthusiastic crowd. 

Their new album Hypnotic Eye which has already gone platinum.  They played most of the tunes on that album and one in particular entitled American Dream Plan B offers great lyrics.  Stevie Winwood is the opening act, so pretty impressive lineup of musicians.  I just checked their tour dates; they’re in Washington state tonight, then return to Canada to play in Edmonton, Calgary, etc. – all in all, around 35 more scheduled concerts in North America before they wind up the tour with the second of two concerts in LA on October 11^th.  Try to get to one if you’re  a fan – you won’t be disappointed.

Photos of the Day

Students of Shaolin Tagou Martial Arts School are suspended in mid-air as they practise in a dress rehearsal for a stunt performance which is part of the opening ceremony of the 2014 Nanjing Youth Olympic Games, at a stadium in Nanjing, Jiangsu province, China. A total of 520 students took part in the performance named ‘Building the dream’, which will be performed during the opening ceremony of the Youth Olympic Games. Reuters

Vessels anchor in the sea as storm clouds gather over the east coast of Singapore. Edgar Su/Reuters

Market Closes for August 15^th, 2014    

Market Index	Close	Change
Dow Jones	16662.91	-50.67
		-0.30%
S&P 500	1955.07	-0.11   -0.01%
NASDAQ	4464.926	+11.924   +0.27%
TSX	15303.74	+12.56
		+0.08%

International Markets

Market Index	Close	Change
NIKKEI	15318.34	+3.77
		+0.02%
HANG SENG	24954.94	+153.58
		+0.62%
SENSEX	26103.23	+184.28
		+0.71%
FTSE 100	6689.08	+3.82
		+0.06%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.018	2.060
CND. 30 Year Bond	2.584	2.623
U.S.    10 Year Bond	2.3397	2.4015
U.S. 30 Year Bond	3.1323	3.1917

Currencies

BOC Close	Today	Previous
Canadian $	0.91780	0.91685
US $	1.08957	1.09069
Euro Rate 1 Euro=		Inverse
Canadian $	1.46001	0.68493
US $	1.33999	0.74628

Commodities

Gold	Close	Previous
London Gold Fix	1304.86	1313.38
Oil	Close	Previous
WTI Crude Future	97.35	95.58

Market Commentary:

Canada

By Eric Lam

     Aug. 15 (Bloomberg) — Canadian stocks rose, extending a two-week high, as corrected data that showed the economy added more jobs in July than initially reported and crude prices jumped the most in a month on tension in Ukraine.

     Advantage Oil & Gas Ltd. jumped 5 percent after reporting rising production and lower costs. Painted Pony Petroleum Ltd. and Suncor Energy Inc. rallied at least 2.4 percent as oil producers snapped a three-day loss. Alacer Gold Corp. and B2Gold Corp. lost at least 1 percent as the price of gold dropped the most this month.

     The Standard & Poor’s/TSX Composite Index rose 13.03 points, or 0.1 percent, to 15,304.21 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 12 percent this year, the second-best performer among the world’s developed markets behind Denmark.

     Painted Pony added 3.3 percent to C$12.40 and Suncor rose 2.4 percent to C$42.95, the most since June 12, as energy stocks climbed 0.9 percent as a group. Four of 10 industries in the S&P/TSX advanced on trading volume 4.9 percent below the 30-day average.

     West Texas Intermediate crude for September delivery jumped 1.9 percent to settle at $97.35 a barrel in New York, the biggest gain since July 17.

     Ukraine said its troops attacked and partially destroyed a column of armed vehicles that had crossed the border from Russian territory, while Russia said it was concerned about an attack on another convoy carrying aid.                         

     Alacer Gold lost 2.5 percent to C$2.36 and B2Gold slipped 1 percent to C$2.89. Gold for December delivery retreated 0.7 percent to $1,306.20 an ounce in New York, the biggest drop since July 31.

     Canadian employment rose by 41,700 in July, Statistics Canada said today, after it retracted incorrect figures from a week ago that showed a gain of 200 positions.

     The jobs report revisions reduced the full-time job loss to 18,100 from 59,700 and raised the employment gain in the province of Ontario to 39,500 from 15,100. Staff failed to run a program that is part of a scheduled update to the survey, leaving uncounted workers who should have been classified as full-time employees, Statistics Canada said in the report.

     Imperial Metals Corp. rallied 16 percent to C$10.11 after disclosing a plan to raise C$100 million by selling convertible bonds to help pay for the cleanup at its Mount Polley mine, the scene of the worst waste spill in Canada in at least two decades.

     British Columbia officials are investigating the Aug. 4 failure of a dam at the waste pond at Mount Polley. The resulting torrent of waste poured into local waterways, leaving local people without drinking water. The stock has slumped 40 percent since the accident.

US

By Joseph Ciolli

     Aug. 15 (Bloomberg) — U.S. stocks erased losses as increasing violence in Ukraine sent oil prices to the biggest increase in a month and spurred a rally in energy producers.

     Anadarko Petroleum Corp., Cimarex Energy Co. and Kinder Morgan Inc. led a measure of oil and natural gas producers in the Standard & Poor’s 500 Index to a 0.5 percent advance, the most among 10 main industries. Nordstrom Inc. sank 5.2 percent after reporting sales that missed analysts’ estimates. Monster Beverage Corp. soared 30 percent after Coca-Cola Co. agreed to buy a stake in the company.

     The S&P 500 pared declines in the late afternoon, ending the day little changed at 1,955.06 as 4 p.m. in New York. It earlier fell as much as 0.7 percent. The Dow Jones Industrial Average slid 50.67 points, or 0.3 percent, to 16,662.91. About 6 billion shares changed hands on U.S. exchanges today, 5.7 percent above the three-month average.

     “Investors are trying to weed through what exactly is going on in Ukraine, and the market is drifting back,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said in a phone interview. “We have a geopolitical situation that needs to be addressed, and that’s overshadowing everything else in the market.”

     Ukrainian government troops attacked an armed convoy that had crossed the border from Russian territory, Andriy Lysenko, a spokesman for the country’s military, told reporters in Kiev. Ukrainian soldiers continue to come under shelling, including rounds fired from Russia, he said.                          

     The Russian Foreign Ministry said in a statement that Ukraine is attempting to disrupt an aid convoy, and called for a cease-fire to allow delivery of supplies. The government in Kiev has for months said that separatist rebels in its easternmost regions are receiving support from Russia, which backs them with artillery fire. Russia has repeatedly denied any involvement in the Ukrainian unrest.

     The turmoil pushed energy prices higher, with West Texas Intermediate crude rising 1.9 percent to $97.35 a barrel. Kinder Morgan Inc. rallied 3.9 percent, bringing gains for the week to 15 percent after Houston billionaire Richard Kinder made a move to consolidate his pipeline empire. Cimarex and Anadarko climbed more than 2 percent.

     The Chicago Board Options Exchange Volatility Index, which usually moves in the opposite direction to the S&P 500, jumped 5.9 percent to 13.15, halting five days of declines. The gauge lost 17 percent for the week.

     The S&P 500 rose 1.2 percent this week as signs of a slowing economy stoked bets central banks will leave interest rates near record lows for longer, overshadowing escalating tensions in Ukraine.

     Economic data today showed industrial production advanced 0.4 percent in July, while the New York Fed Empire Manufacturing gauge fell more than estimated and consumer confidence unexpectedly declined to its lowest level of the year.

     Nineteen S&P 500 companies, including Home Depot Inc. and Hewlett Packard Co., are scheduled to release earnings next week. About 76 percent of those that have reported so far this season have beaten analyst estimates for earnings, while 65 percent have exceeded sales projections, data compiled by Bloomberg show.

     Nordstrom slid 5.2 percent to $65.11, the lowest since May.  The largest U.S. luxury department-store chain reported same- store sales that missed estimates in the most recent quarter.

     Monster Beverage soared 30 percent to a record $93.49.  Coca-Cola agreed to swap some brands and buy a 17 percent stake in the company for about $2.15 billion, increasing its exposure to the growing energy-drink market. Coca-Cola added 1.7 percent to $40.88 for the biggest gain in the Dow.

     Applied Materials Inc. jumped 6.3 percent to $22.48 after forecasting sales that may top analysts’ estimates. The largest maker of semiconductor-manufacturing equipment forecast fiscal fourth-quarter sales that may top estimates as it steals orders from rivals demand rises for machines that make displays.

     Vringo Inc. plummeted 72 percent to 88 cents. The patent licensing firm, which reported $1.1 million in revenue last year, fell after Google Inc. won its bid to overturn a $30.5 million patent-infringement verdict. The U.S. Court of Appeals for the Federal Circuit in Washington determined that the Vringo patents in the case were invalid, according to an opinion on the court’s website.

 

Have a wonderful weekend everyone.

 

Be magnificent!

I am asking whether it is possible for a human being living psychologically in any society

to clear violence from himself inwardly.

If it is, the very process will produce a different way of living in this world.

 

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

It is never too late to be what your might have been.

                                    -George Eliot, 1819-1880

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

Photos of the Day The Iberian Peninsula at night, showing Spain and Portugal, is seen in an undated NASA handout picture taken from the International Space Station. Madrid is the bright spot just above the center. The clarity of the night image is possible thanks to the European Space Agency’s NightPod, installed on the station in 2012, according to a NASA news release. It incorporates a motorized tripod that compensates for the station’s speed of approximately 17,500 mph and the motion of the Earth below. NASA/Reuters

The finished giant turkish flower carpet is seen at Brussels’ Grand Place in Blegium. Yves Herman/Reuters

Market Closes for August 14^th, 2014    

Market Index	Close	Change
Dow Jones	16713.58	+61.78
		+0.37%
S&P 500	1955.18	+8.46     +0.43%
NASDAQ	4453.004	+18.878     +0.43%
TSX	15291.18	+28.45
		+0.19%

International Markets

Market Index	Close	Change
NIKKEI	15314.57	+100.94
		+0.66%
HANG SENG	24801.36	-88.98
		-0.36%
SENSEX	26103.23	+184.28
		+0.71%
FTSE 100	6685.26	+28.58
		+0.43%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.060	2.074
CND. 30 Year Bond	2.623	2.642
U.S.    10 Year Bond	2.4015	2.4166
U.S. 30 Year Bond	3.1917	3.2432

Currencies

BOC Close	Today	Previous
Canadian $	0.91685	0.91613
US $	1.09069	1.09155
Euro Rate 1 Euro=		Inverse
Canadian $	1.45741	0.68615
US $	1.33624	0.74837

Commodities

Gold	Close	Previous
London Gold Fix	1313.38	1312.90
Oil	Close	Previous
WTI Crude Future	95.58	97.59

Canada By Eric Lam

     Aug. 14 (Bloomberg) — Canadian stocks rose for the fourth day out of five, joining gains in global markets amid signs of easing tensions in Ukraine after Russian President Vladimir Putin said he will work to end the conflict.

     Badger Daylighting Ltd., a construction services company, rallied 6.4 percent after slumping the most in 18 years yesterday on lower margins. Element Financial Corp., a transportation leasing business, added 4.2 percent for a second day of gains after reporting rising revenue. Royal Bank of Canada advanced 0.8 percent to pace gains among the nation’s largest lenders.

     The Standard & Poor’s/TSX Composite Index rose 28.45 points, or 0.2 percent, to 15,291.18 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 12 percent this year, the second-best performer among the world’s developed markets behind Denmark.

     The MSCI World Index added 0.4 percent as Putin, visiting Crimea today, pledged to work to halt the conflict that’s flared for months between pro-Russian separatists and government forces, killing more than 1,500 people.

     Eight of 10 industries in the S&P/TSX advanced on trading volume 7.4 percent lower compared with the 30-day average.

     Financial stocks, which account for the biggest weighting in the broader index, added 0.6 percent. Element Financial climbed 4.2 percent to C$14.83, a four-month high. Royal Bank, the second-largest lender by assets, rose 0.8 percent to C$80.18 for a fourth day of gains. Royal Bank is scheduled to report third-quarter earnings on Aug. 22.

     First Quantum Minerals Ltd. lost 2 percent to C$23.97, the lowest in six weeks, as copper prices fell to a seven-week low in New York. Output in China rose to the highest since November.

     The Bloomberg Commodity Index of 22 raw materials dropped 0.5 percent, erasing gains for the year. Lean hogs, Brent crude and gasoline fell at least 1.6 percent.

     Penn West Petroleum Ltd. dropped 4.2 percent to C$7.75. Crude futures for September delivery in New York slid 2.1 percent amid speculation U.S. oil demand is slowing after a government report showed weekly inventories expanded for the first time since June.

USA By Elena Popina

     Aug. 14 (Bloomberg) — U.S. stocks rose, sending the Standard & Poor’s 500 Index to a two-week high, as speculation the crisis in Ukraine won’t escalate overshadowed weaker-than- estimated economic employment data.

     Kohl’s Corp. added 3.3 percent to a four-month high after quarterly results beat estimates. Wal-Mart Stores Inc. gained 0.5 percent after reporting stagnant same-store sales and lowering its profit forecast, while Cisco Systems Inc. declined 2.6 percent after forecasting little to no sales growth. Warren Buffett’s Berkshire Hathaway Inc.’s Class A shares traded above $200,000 for the first time.

     The S&P 500 added 0.4 percent to 1,955.18 at 4 p.m. in New York, the highest since July 30. The index has advanced 1.2 percent this week. The Dow Jones Industrial Average rose 61.78 points, or 0.4 percent, to 16,713.58. About 4.8 billion shares changed hands on U.S. exchanges, the slowest day since July 3.

     “The market is ebbing and flowing off of geopolitical news, it’s been all quiet in the past 24 hours, and that has given a positive push to the market today,” Chad Morganlander, a money manager at St. Louis-based Stifel, Nicolaus & Co., which oversees about $160 billion, said in a phone interview. “The overall jobs market in the U.S. remains bullish, but there is somewhat cautious tone on the European economy.”

     Equity futures and European stocks erased earlier losses after President Vladimir Putin said Russia will do everything it can to stop the conflict in eastern Ukraine. Stocks had slumped after data showed the euro area’s recovery unexpectedly stalled in the second quarter after its three biggest economies

     Prospects of the euro-region’s economy slipping back into recession have fueled speculation the European Central Bank may boost stimulus measures, while U.S. economic strength has created concern that the Federal Reserve may be forced to act on rates sooner than anticipated.

     The U.S. central bank remains on pace to wind down its monthly bond purchases in October. Fed Chair Janet Yellen has said officials will keep the benchmark rate low for a “considerable time” after the bond buying ends.

     The S&P 500 reached a record on July 24 before sliding as much as 3.9 percent as President Barack Obama authorized air strikes against militants in Iraq and concern grew that fighting in Ukraine would disrupt world trade. The gauge closed 1.7 percent below its all-time high.

     Data today showed applications for unemployment benefits in the U.S. rose more than forecast last week, interrupting a steady decline to pre-recession lows. Jobless claims climbed by 21,000 to 311,000 in the period ended Aug. 9, the highest in six weeks, a Labor Department report said.

     “The jobless claims data may shake things up in the market a little bit, but we have to factor in some volatility in the summer jobless claims numbers,” John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York, said in a phone interview. “Even if the jobless claims numbers are higher than expected, this negativity can be overshadowed by the fact that rates will remain lower.”

     A report yesterday showed retail sales were little changed in July, the worst performance in six months, as car demand slowed and tepid wage growth restrained U.S. consumers. Home Depot Inc. to Target Corp. and Gap Inc. are among retailers in the S&P 500 that report earnings in the next week.

     Wal-Mart gained 0.5 percent to $74.39. The world’s largest retailer said sales at stores open at least a year were stagnant in the last quarter. The company cut its 2014 profit forecast because of higher health-care costs and slow traffic at its supercenters.

     Kohl’s advanced 3.3 percent to $56.91, the highest since April. The department-store chain posted second-quarter profit of $1.13 per share, more than the $1.07 projected by analysts.

     Cisco slipped 2.6 percent to $24.54 for the biggest drop in the Dow. The world’s largest networking-equipment maker forecast adjusted earnings of 51 cents to 53 cents a share, compared with the 53-cent average analyst projection. Cisco will also take a charge of as much as $700 million to cut 6,000 jobs.

     About 75 percent of the S&P 500-listed companies that have posted results this season have beaten analysts’ estimates, while 65 percent have exceeded sales projections, data compiled by Bloomberg show.

     Profit for members of the equity benchmark probably climbed 9.7 percent in the second quarter, while sales increased 4.3 percent, according to analysts’ estimates compiled by Bloomberg. The S&P 500 trades at 16.3 times the projected earnings of its members, down from a multiple of 16.7 in July.

     The equities benchmark has been trading below its 50-day moving average of 1,956.8 for the past 11 periods. Since early 2013, it has dipped below that measure while remaining above its 200-day average on six occasions, Terry Sandven, chief equity strategist at Minneapolis-based U.S. Bank Wealth Management, which oversees $124 billion, said in a note to clients. Each time, the gauge rebounded to continue its upward ascent, Sandven wrote.

     The Chicago Board Options Exchange Volatility Index, which usually moves in the opposite direction to the S&P 500, slid 3.7 percent to 12.42 today in its fifth day of declines, the longest losing streak since May. The gauge has lost 25 percent during the slump.

     Nine of the 10 main S&P 500 groups advanced today, with health-care and utilities stocks rising at least 0.9 percent for the best performances.

     Perrigo Co., a maker of generic drugs, added 7.3 percent for the biggest advance in the S&P 500 after it reported adjusted fourth-quarter earnings that topped estimates.

     Avago Technologies Ltd. jumped 2.6 percent to $73.84. The company agreed to sell its Axxia networking business to Intel Corp. for $650 million.

     Berkshire Hathaway Class A shares advanced 1.6 percent to $202,850, an all-time high. The stock traded above $200,000 for the first time, further validating Buffett’s vision for building wealth at the company he’s run for almost five decades.

 

Have a wonderful evening everyone. 

 

Be magnificent!

“Life is a song – sing it. Life is a game – play it. Life is a challenge – meet it. Life is a dream – realize it. Life is a sacrifice – offer it. Life is love – enjoy it.”

Sai Baba

As ever,

 

Karen

 

“The privilege of a lifetime is being who you are.” –  Joseph Campbell

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in 1961, the Brandenburg Gate was closed separating East and West Berlin and construction of the Berlin Wall began.

Exciting story reported today, this from the Guardian newspaper:

Archaeologists uncover vast ancient tomb in Greece

Site dates to end of Alexander the Great’s reign in 4th century BC and may be grave of a prominent Macedonian, say officials

Reuters,The Guardian, Wednesday 13 August 2014
Archaeologists have unearthed a vast ancient tomb in Greece, distinguished by two sphinxes and frescoed walls and dating to 300-325BC, the government announced on Tuesday.

The tomb, in the country’s north-eastern Macedonia region, which has been gradually unearthed over the past two years, marks a significant discovery from the early Hellenistic era. A culture ministry official said that there was no evidence yet to suggest a link to Alexander the Great – who died in 323BC after an unprecedented military campaign through the Middle East, Asia and northeast Africa – or his family.

The official said the Amphipolis site, about 65 miles north-east of Greece’s second-biggest city, Thessaloniki, appeared to be the largest ancient tomb to have been discovered in Greece.

Archaeologists began excavating the site in 2012 and expect to enter the tomb by the end of the month to determine who was buried there.

“It looks like the tomb of a prominent Macedonian of that era,” said a second culture ministry official. Alexander the Great died in Babylonia, in modern Iraq, and his actual burial place is not known.

Archaeologists have found two sphinxes, thought to have guarded the tomb’s entrance, and a 4.5-metre-wide road leading into it, with walls on both sides covered by frescoes. It is circled by a 497-metre marble outer wall.

Experts believe a five-metre-tall lion sculpture previously discovered nearby once stood atop the tomb.

“It is certain that we stand before an especially significant finding. The land of Macedonia continues to move and surprise us, revealing its unique treasures,” the prime minister, Antonis Samaras, said on Tuesday during a visit to the site.

Photos of the DayA meteor streaks over the sky during the Perseid meteor shower at the Maculje archaeological site near Novi Travnik. According to NASA, the annual Perseid meteor shower reaches its peak on August 12 and 13 in Europe. The fireballs from the meteorites are fast and plentiful, although a nearly full moon (Supermoon) makes it difficult to view them this year, the agency adds. Dado Ruvic/Reuters

A visitor tries Sony’s ‘Project Morpheus’ virtual reality headset at an exhibition stand during the Gamescom 2014 fair in Cologne. The Gamescom convention, Europe’s largest video games trade fair, runs from August 13 to August 17. Ina Fassbender/Reuters

Market Closes for August 13^th, 2014    

MarketIndex	Close	Change
DowJones	16651.80	+91.26
		+0.55%
S&P 500	1946.72	+12.97  +0.67%
NASDAQ	4434.125	+44.874  +1.02%
TSX	15262.73	-11.50
		-0.08%

International Markets

MarketIndex	Close	Change
NIKKEI	15213.63	+52.32
		+0.35%
HANGSENG	24890.34	+200.93
		+0.81%
SENSEX	25918.95	+38.18
		+0.15%
FTSE 100	6656.68	+24.26
		+0.37%

Bonds

Bonds	% Yield	Previous % Yield
CND.10 Year Bond	2.074	2.114
CND.30 YearBond	2.642	2.670
U.S.   10 Year Bond	2.4166	2.4491
U.S.30 Year Bond	3.2432	3.2765

Currencies

BOC Close	Today	Previous
Canadian $	0.91613	0.91513
US$	1.09155	1.09274
Euro Rate1 Euro=		Inverse
Canadian$	1.45873	0.68553
US$	1.33639	0.74829

Commodities

Gold	Close	Previous
London GoldFix	1312.90	1308.56
Oil	Close	Previous
WTI Crude Future	97.59	97.37

Market Commentary:

Canada

By Jacob Barach

Aug. 13 (Bloomberg) — Canadian stocks ended a three-day rally as raw-material companies dropped after China’s industrial production trailed analyst estimates.

Badger Daylighting Ltd., an excavation company, fell 24 percent after it reported lower profit margins on slower activity in North America and wet weather in Saskatchewan. Black Diamond Group Ltd. slid 3.7 percent after its earnings fell short of analyst estimates. Secure Energy Services Inc. rose 13 percent on better-than-forecast profit.

The Standard & Poor’s/TSX Composite Index dropped 11.50 points, or 0.1 percent, to 15,262.73 at 4 p.m. in Toronto. The equity gauge is up 12 percent this year, and had advanced 1 percent over the previous three days.

Teck Resources Ltd., Canada’s largest diversified mine operator, slid 0.3 percent. Copper fell 1.3 percent amid concern about the outlook for demand in China, the biggest consumer of the metal. Zinc and aluminum slid in London.

China’s industrial output expanded 9 percent in July, less than the 9.2 percent estimate from economists in a Bloomberg survey, government statistics showed today. The country’s broadest measure of credit slumped to the lowest since the global financial crisis.

Badger Daylighting plunged 24 percent to C$27.25. Adjusted Ebitda margins were 25 percent for the second quarter, compared with 29 percent a year ago, the company said.

Black Diamond fell 3.7 percent to C$28.67. The provider of temporary work space reported earnings excluding some items of 23 cents a share, compared with the 31-cent average analyst estimate, data compiled by Bloomberg show. Yesterday, the stock was reduced to market perform, the equivalent of hold, from outperform at BMO Capital Markets.

Secure Energy Services gained 13 percent to C$27.18. The company, which sells services to the oil and gas industry, had earnings of 5 cents a share, compared with the average analyst estimate of 4 cents. It also agreed to buy Predator Midstream Ltd., according to a statement from the company yesterday.

USA

By Elena Popina

Aug. 13 (Bloomberg) — U.S. stocks rose, pushing the Standard & Poor’s 500 Index to a two-week high, as a slowdown in retail sales boosted speculation the Federal Reserve won’t be forced to raise rates sooner than anticipated.

Amazon.com Inc. climbed 2.2 percent after ChannelAdvisor Corp. said the retailer’s same-store sales rose 40 percent in July. Vertex Pharmaceuticals Inc. jumped 3.9 percent to lead gains among health-care stocks. King Digital Entertainment Plc plummeted 23 percent trading after posting worse-than-forecast sales and cutting its 2014 outlook. Macy’s Inc. lost 5.5 percent after profit fell short of estimates.

The S&P 500 gained 0.7 percent to 1,946.72 at 4 p.m. in New York, the highest since July 30. The Dow Jones Industrial Average climbed 91.26 points, or 0.6 percent, to 16,651.80, also the highest in two weeks. About 5.1 billion shares changed hands on U.S. exchanges, 11 percent below the three-month average.

“There is some feeling that events overseas are beginning to cool down a little bit but also the retail numbers might suggest that the Fed is not going to be so aggressive in raising rates any time soon,” Bruce Bittles, chief investment strategist at Milwaukee-based RW Baird & Co., which oversees $110 billion, said in a phone interview. “That has been the backbone of the market for the past five years.”

Retail sales were little changed in July, the worst performance in six months, as car demand slowed and tepid wage growth restrained U.S. consumers. The slowdown in purchases followed a 0.2 percent advance in June, the Commerce Department reported today in Washington.

Recent data have shown U.S. gross domestic product expanded at a 4 percent annual pace in the second quarter, confirming the Fed’s view that a first-quarter contraction was transitory. Employers in the U.S. added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997.

The economic strength had created concern that the Fed may be forced to act on rates sooner than anticipated, as the central bank remains on pace to wind down its monthly bond purchases in October. Fed Chair Janet Yellen has said officials will keep its benchmark low for a “considerable time” after the bond buying ends.

Three-rounds of bond purchases and record-low interest rates have helped push stocks higher by as much as 194 percent from a bear-market low in 2009.

The S&P 500 last closed at a record on July 24 before tumbling 3.9 percent on concerns that geopolitical crises from Ukraine to Israel and Iraq could derail the global economy. The gauge closed today 2.1 percent below its all-time high.

In Iraq, Kurdish forces fought to retake positions overrun last week by Islamic State fighters in the northern part of the country, while a political standoff between President Fouad Masoum and Prime Minister Nouri al-Maliki continued.

Ukrainian officials said today they’d refuse entry to a truck convoy that Russia says is loaded with humanitarian assistance for rebel-held eastern areas, while pledging to send their own aid to the embattled region.

“The many geopolitical issues are a little quieter or on the back burner at the moment,” Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview. “It’s given investors an opportunity to take a look and see if they want to add to positions, and it looks like that’s what they’re doing today.”

Four companies, including Macy’s and Cisco Systems Inc. report earnings today. About 75 percent of those that have posted results this season have beaten analyst estimates, while 64 percent have exceeded sales projections, data compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index, which usually moves in the opposite direction to the S&P 500, slid 8.7 percent to 12.90 today.

All 10 main S&P 500 groups advanced today, with health-care and information technology stocks advancing at least 1.1 percent for the best performances. Vertex Pharmaceuticals Inc. added 3.9 percent for the biggest advance in the S&P 500 while Intel Corp. jumped 2.9 percent to lead gains in the Dow.

Health Care REIT Inc. added 2.3 percent to $64.95 as it agreed to buy HealthLease Properties Real Estate Investment Trust and formed a partnership for additional properties to expand in senior care.

InterMune Inc. jumped 14 percent to $52.06, the most since October 2000, after reports the company had received takeover bids from some of Europe’s biggest drugmakers, including Sanofi and Roche Holding AG.

Amazon.com climbed 2.2 percent to $326.28. ChannelAdvisor said the company’s rate of sales growth has increased each month this year.

EBay Inc. slipped 0.9 percent to $52.94. Its July sales grew by 9.7 percent, down from a 12 percent gain in June, according to ChannelAdvisor.

Macy’s sank 5.5 percent to $56.47 for its biggest slide in two years. The second-largest U.S. department-store company’s earnings missed estimates after discounts meant to lure shoppers eroded profit margins. The Cincinnati-based company, which operates about 840 stores, cut its full-year forecast for comparable-sales growth.

Macy’s led clothing and accessories retailers lower. Fossil Group Inc. tumbled 5.6 percent for the biggest drop in the S&P 500. Tiffany & Co., Kohl’s Corp. and TJX Cos. dropped at least

1.5 percent.

FleetCor Technologies Inc. added 9.8 percent to $142.10. The provider of fuel cards agreed to buy Comdata Inc. for $3.45 billion.

King Digital tumbled 23 percent to $13.99. The maker of the Candy Crush Saga video game said yesterday that gross bookings — the value of virtual merchandise sold — will fall in the third quarter. It also reported second-quarter adjusted revenue that missed analysts’ projections.

SeaWorld Entertainment Inc. dropped 33 percent to $18.90, the lowest since its debut in April 2013. Third-quarter earnings missed estimates as controversy over treatment of captive whales in its theme-park shows hurt attendance, the company said.

Have a wonderful evening everyone.

 

Be magnificent!

An eye for an eye only ends up making the whole world blind.

Mahatma Gandhi, 1869-1948

As ever,

 

Carolann

 

Beauty is power; a smile is its sword.

-Charles Reid, 1814-1884

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM, 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:

Perseid meteor shower peaks tonight.

Do you think God gets stoned? I think so….look at the platypus. –Robin Williams.

Photos of the DayFlowers decorate the late Robin Williams’s star on the Hollywood Walk of Fame in Los Angeles, Calif. Comedians, politicians, and several generations of fans collectively mourned the death of Robin Williams, the actor famous for his fast-paced and freewheeling comedy, whose apparent suicide at age 63 prompted an outpouring of tributes. Lucy Nicholson/Reuters

Fireworks explode over the Grand Palace to mark the birthday of Thailand’s Queen Sirikit in Bangkok. Athit Perawongmetha/Reuters

Market Closes for August 12^th, 2014    

MarketIndex	Close	Change
DowJones	16560.54	-9.44
		-0.06%
S&P 500	1933.75	-3.17  -0.16%
NASDAQ	4389.250	-12.081  -0.27%
TSX	15274.23	+12.59
		+0.08%

International Markets

MarketIndex	Close	Change
NIKKEI	15161.31	+30.79
		+0.20%
HANGSENG	24689.41	+43.39
		+0.18%
SENSEX	25880.77	+361.53
		+1.42%
FTSE 100	6632.42	-0.40
		-0.01%

Bonds

Bonds	% Yield	Previous % Yield
CND.10 Year Bond	2.114	2.071
CND.30 YearBond	2.670	2.635
U.S.   10 Year Bond	2.4491	2.4203
U.S.30 Year Bond	3.2765	3.2351

Currencies

BOC Close	Today	Previous
Canadian $	0.91513	0.91122
US$	1.09274	1.09743
Euro Rate1 Euro=		Inverse
Canadian$	1.46084	0.68454
US$	1.33686	0.74802

Commodities

Gold	Close	Previous
London GoldFix	1308.56	1308.63
Oil	Close	Previous
WTI Crude Future	97.37	98.08

By Eric Lam

Aug. 12 (Bloomberg) — Canadian stocks rose a third day as gold miners advanced to pace gains among raw-materials stocks while crude slipped to send energy producers lower.

Pretium Resources Inc. and Torex Gold Resources Inc. rallied at least 4.2 percent. Legacy Oil & Gas Inc. retreated 3.4 percent as Brent crude fell to a 13-month low. Teck Resources Ltd. dropped 2.5 percent after analysts at Goldman Sachs & Co. cut their rating for the stock.

The Standard & Poor’s/TSX Composite Index rose 12.59 points, or 0.1 percent, to 15,274.23 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 12 percent this year, the second-best performer among the world’s developed markets behind Denmark.

Six of the 10 main industries in the S&P/TSX advanced on trading volume 5.8 percent lower than the 30-day average.

Raw-materials producers jumped 0.9 percent for the biggest advance, as gold fluctuated around $1,310 an ounce in New York. Gold has rallied 9 percent this year amid concern crises in Ukraine and Iraq could disrupt global growth.

Pretium advanced 4.2 percent to C$7.89, the highest in three weeks, and Torex increased 6.6 percent to C$1.62.

A Russian humanitarian mission was headed toward eastern Ukraine after the U.S. warned President Vladimir Putin not to use aid as a cover to send in troops.

Iraq’s political crisis deepened as embattled Prime Minister Nouri al-Maliki refused to hand power to designated successor Haidar al-Abadi, and soldiers and militiamen fanned out across the capital, Baghdad.

Energy shares slipped 0.3 percent, as Brent oil slumped after the International Energy Agency said a supply glut was shielding the market against threats in the Middle East.

Legacy Oil dropped 3.4 percent to C$7.87, and Painted Pony Petroleum Ltd. retreated 5.6 percent to C$11.63.

US

By Elena Popina and Callie Bost

Aug. 12 (Bloomberg) — U.S. stocks declined, after the Standard & Poor’s 500 Index produced its biggest two-day gain since April, as investors watched geopolitical developments and energy shares sank after Brent crude fell to a 13-month low.

Nuance Communications Inc. tumbled 9 percent after posting third-quarter revenue that missed analysts’ estimates. Consol Energy Inc. slipped 2.4 percent to pace losses among energy shares. Intercept Pharmaceuticals Inc. soared 17 percent after a clinical trial met its primary goal. Newmont Mining Corp. jumped 2 percent to the highest since November after an eighth day of gains.

The S&P 500 fell 0.2 percent to 1,933.75 at 4 p.m. in New York. The Dow Jones Industrial Average slipped 9.44 points, or 0.1 percent, to 16,560.54. The Russell 2000 Index of small stocks retreated 0.8 percent. About 4.9 billion shares changed hands on U.S. exchanges, the slowest day in a month.

“We’re in a zone of ambivalence with investors maintaining a cautious bias,” Terry Sandven, chief equity strategist at Minneapolis-based U.S. Bank Wealth Management, which oversees $124 billion, said by phone. “Equities appear to be navigating the dog days of summer with markets being driven more by geopolitical events than economic and company fundamentals.”

The S&P 500 climbed 1.4 percent in the previous two trading days amid speculation that tension in Ukraine would lessen. The S&P 500 had fallen as much as 3.9 percent from its record of 1,987.98 on July 24 on concern that conflicts from Iraq to Israel and Ukraine could slow global economic growth.

Data today from Germany reignited those concerns, after investor confidence reported by the ZEW Center dropped for an eighth month as the crisis in Ukraine and a sluggish euro-area recovery damped the outlook for Europe’s largest economy.

A Russian humanitarian mission was headed toward eastern Ukraine after the U.S. warned President Vladimir Putin not to use aid as a cover to send in troops. Ukraine said it won’t let the convoy enter in its current form because it argues the mission doesn’t adhere to international rules.

Equities pared declines after Russia’s Foreign Minister Sergei Lavrov called on Germany to assist with the aid mission. Lavrov spoke by phone with German Foreign Minister Frank-Walter Steinmeier today, the Russian Foreign Ministry website said.

In the Middle East, wide gaps remain between Israel and the Palestinians in reaching a long-term deal on the Gaza Strip, an Israeli official said, as Hamas warned there would be no more truces beyond the one due to end at midnight tomorrow.

Iraq’s Prime Minister Nouri al-Maliki chaired a meeting of military officers in the latest sign that he won’t hand power to designated successor Haidar al-Abadi.

“We have some bad news on German investor confidence, and bad news from the euro zone in the long term impact the U.S.,” Walter Todd, who oversees more than $1 billion as chief investment officer for Greenwood, South Carolina-based Greenwood Capital Associates LLC, said in a phone interview. “The economic data from the U.S. is very good, but if the economic situation in Europe continues to deteriorate, we’re not going be immune from that forever.”

Recent reports have shown U.S. gross domestic product expanded at a 4 percent annual pace in the second quarter, confirming the Fed’s view that a first-quarter contraction was transitory. Employers in the U.S. added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997.

A government report today showed job openings rose in June to the highest level in more than 13 years, firming up the U.S. labor market picture for the second half of the year. The figures are among those on Federal Reserve Chair Janet Yellen’s labor-market “dashboard,” which she uses to help guide monetary policy.

The Chicago Board Options Exchange Volatility Index, which usually moves in the opposite direction to the S&P 500, slid 0.7 percent to 14.13 today.

Seven of the 10 main groups in the S&P 500 declined, with energy companies dropping 0.7 percent to lead the slide as Brent crude settled at the lowest level since July 2013. The International Energy Agency said a supply glut was shielding the market against threats in the Middle East.

Consol Energy lost 2.4 percent, while Kinder Morgan Inc. fell 1.6 percent after yesterday rallying 9 percent. Pioneer Natural Resources Co. slid 2 percent.

Nuance Communications dropped 9 percent to $16.47 after the maker of speech-recognition software reported adjusted third- quarter revenue of $486.8 million, missing the average analyst projection of $498.5 million.

Intercept Pharmaceuticals surged 17 percent to $276.52. The company said a treatment based on bile acid met the primary goal in a test of 219 patients with non-alcoholic fatty liver disease.

Newmont Mining rose 2 percent to $27.06 for the biggest gain in the S&P 500 and its highest level since November 2013. The gold miner’s eight-day rally is its longest in three years.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Facts are not frightening.

But if you try to avoid them, turn your back and run, then that is frightening.

 

Krishnamurti, 1895-1986

 

As ever,

 

Carolann

 

If people never did silly things, nothing intelligent would ever get done.

-Ludwig Wittgenstein, 1889-1951

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7