Month: November 2014

Dear Friends,

Tangents:

Reading Poetry

It’s a forgotten pleasure in our rushed days, to leaf through a slim volume of verse, perhaps while sitting in the top deck of the bus, or when resting by a tree in the city park.  Everyone should keep a book of poetry about their person.  Even to read four lines of Keats while waiting for a friend will enrich your day.  Here is Keats, for example, on the pleasures of red wine:

O for a draught of vintage!  that hath been
Cooled a long age in the deep-delvéd earth,
Tasting of  Flora and the country-green,
Dance, and Provencal song, and sunburnt mirth!

What a phrasemaker he was!  Words well chosen can fill your heart with joy.  Reject the empty clatter of the penny dreadful and keep a book of poetry on your person at all times.
-Dan Kieran and Tom Hodgkinson, The Book of Idle Pleasures, Ebury Press, 1988.

PHOTOS OF THE DAY

US artist ‘Hen’ of San Francisco dances during the audiovisual performance ‘StratoFyzika’ at the 18th international festival for computer-based art ‘CYNETART 2014’ in the Festspielhaus Hellerau in Dresden, Germany. More than 60 international artists of 20 countries have been invited to present their work. Jens Meyer/AP

Jean de Loisy, Palais de Tokyo director, hides a needle in a haystack before an art performance based on the expression ‘looking for a needle in a haystack’ at the Palais de Tokyo modern and contemporary art museum in Paris. Italian artist Sven Sachsalber will spend two days trying to find the needle in a large pile of hay. Charles Platiau/Reuters

Market Closes for November 13^th, 2014    

Market Index	Close	Change
Dow Jones	17652.79	+40.59
		+0.23%
S&P 500	2038.03	-0.22   -0.01%
NASDAQ	4680.141	+5.006   +0.11%
TSX	14780.94	-75.26
		-0.51%

International Markets

Market Index	Close	Change
NIKKEI	17392.79	+195.74
		+1.14%
HANG SENG	24019.94	+81.76
		+0.34%
SENSEX	27940.64	-68.26
		-0.24%
FTSE 100	6635.45	+24.41
		+0.37%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.047	2.057
CND. 30 Year Bond	2.612	2.621
U.S.    10 Year Bond	2.3496	2.3694
U.S. 30 Year Bond	3.0757	3.1006

Currencies

BOC Close	Today	Previous
Canadian $	0.87888	0.88386
US $	1.13781	1.13140
Euro Rate 1 Euro=		Inverse
Canadian $	1.41970	0.70438
US $	1.24774	0.80145

Commodities

Gold	Close	Previous
London Gold Fix	1161.55	1160.01
Oil	Close	Previous
WTI Crude Future	74.21	77.18

Market Commentary:

Canada

By Eric Lam

     Nov. 13 (Bloomberg) — Canadian stocks fell, ending a six- day advance, as energy shares declined with the price of oil after U.S. supplies increased to the highest since May.

     Painted Pony Petroleum Ltd. and Kelt Exploration Ltd. slumped more than 8.7 percent as the S&P/TSX Energy Index retreated the most among 10 industry groups. BlackBerry ltd. jumped 7.7 percent after entering a strategic software partnership with Samsung Electronics Co.

     The Standard & Poor’s/TSX Composite Index fell 75.96 points, or 0.5 percent, to 14,780.24 at 4 p.m. in Toronto. The index pared its increase for the year to 8.5 percent, the sixth- best performer among the world’s 24 developed markets.

     Painted Pony sank 9.6 percent to C$11.30 and Kelt Exploration tumbled 8.7 percent to C$9.66 as energy producers lost 2.4 percent as a group. Five of 10 industries in the S&P/TSX declined on trading volume 9.4 percent lower than the 30-day average.

     West Texas Intermediate crude for December delivery declined 3.9 percent to settle at $74.21 a barrel in New York, the lowest since September 2010. Oil supplies at the hub in Cushing, Oklahoma, climbed 1.7 million barrels to 22.5 million last week, the Energy Information Administration said. Brent crude extended losses below $80 a barrel to the lowest since September 2010.

     Aimia Inc., which provides loyalty programs for credit cards, plunged 9.1 percent to C$15.29, the biggest decline since March 2009. The company reported weaker-than-expected third- quarter earnings.

     BlackBerry climbed 7.7 percent to C$13.74, the highest level in more than a year. The smartphone maker will partner with Samsung to provide secure mobile software solutions for Android-based devices.

US

By Callie Bost

     Nov. 13 (Bloomberg) — U.S. stocks were little changed near record highs, as better-than-estimated results from Wal-Mart Stores Inc. and corporate deals overshadowed losses in small caps and energy shares.

     Wal-Mart surged 4.7 percent to an all-time high after earnings topped forecasts. Baker Hughes Inc. rallied 15 percent after a person with knowledge of the matter said Halliburton Co. was in talks to buy it. DreamWorks Animation SKG Inc. jumped 14 percent after reports Hasbro Inc. is in talks to buy the studio. Exxon Mobil Corp. paced losses in energy shares as crude sank. Microsoft Corp. passed the oil producer as the second-biggest company in the Standard & Poor’s 500 Index.

     The S&P 500 rose 0.1 percent to 2,039.33 at 4 p.m. in New York, closing less than one point from a record. The Dow Jones Industrial Average climbed 40.59 points, or 0.2 percent, to 17,652.79, an all-time high as Wal-Mart and Cisco Systems Inc. led gains. The Russell 2000 Index of smaller stocks sank 0.9 percent to halt a six-day rally.

     “We had a pretty big run-up within the month of November and late October and we’ve seen a slowing of the momentum recently,” Joe Bell, a Cincinnati-based senior equity analyst at Schaeffer’s Investment Research Inc., said by phone. “From the context of a price standpoint, we’re due for a breather.”

     The S&P 500 retreated yesterday for the first time in six days, after rallying 9.5 percent from a six-month low in October to an all-time high as better-than-estimated corporate earnings and economic data boosted confidence the U.S. economy is weathering a global slowdown. The index trades at 17 times forward earnings, its highest valuation since December 2009.                        

     Investors sold the recent rally’s biggest winners today. The Russell 2000 had surged 13 percent over the past month through yesterday, the biggest 30-day increase since August 2009.

     The Chicago Board Options Exchange Volatility Index climbed 5.9 percent to 13.79. The gauge of S&P 500 options prices has increased 5.1 percent this week.

     Data today showed applications for U.S. unemployment benefits rose more than forecast last week, representing a pause from a recent run of readings close to a 14-year low.

     “The market is just churning right now, looking for an indication of which direction the future is going to take,” Peter Sorrentino, a Cincinnati-based fund manager at Huntington Asset Advisors Inc., said by phone. His firm oversees $1.8 billion. “There is no catalyst to get investors excited or to instill additional fear.”

     Four of the 10 main industries in the S&P 500 advanced today. Phone stocks climbed 0.7 percent, while shares in consumer-discretionary producers added 0.6 percent for the biggest gains.

     Wal-Mart rose 4.7 percent to $82.94 for its best day since 2008 and the biggest gain in the Dow. The world’s largest retailer also said U.S. same-store sales grew for the first time in seven quarters. The sales increase signals that Chief Executive Officer Doug McMillon is making progress in his turnaround plan.

     “One of the positives for the market are positive reactions from retail names to earnings,” Schaeffer’s Bell said. “A lot of the consumer discretionary sector had low expectations coming into this season, but we saw positive results from Macy’s yesterday and Wal-Mart today.”

     Nordstrom Inc. advanced 2.2 percent to $74.88 in late trading after reporting revenue that topped estimates. The company finished the regular session 0.6 percent higher.

     Kohl’s Corp. slipped 3.2 percent to $56.07. The retailer reported third-quarter revenue and earnings that missed estimates and said fourth-quarter margins may be pressured.                        

     J.C. Penney plunged 8.5 percent to $7.10. The company posted an unexpected third-quarter sales decline as consumers restrained spending amid the choppy economic recovery and warmer weather hurt sales of seasonal merchandise.

     Viacom Inc. led media shares higher, rallying 2.8 percent to $71.20. The owner of Comedy Central and Spike posted revenue and earnings that beat expectations, as the latest “Transformers” film and higher fees for networks like MTV countered lower advertising sales in the U.S.

     Technology shares in the S&P 500 jumped 0.6 percent, while the Nasdaq 100 Index advanced 0.4 percent.

     Cisco rose 2.3 percent to $25.68 even after forecasting sales that fell short of analysts’ estimates. Level 3 Communications Inc. jumped 3 percent, while Apple Inc. climbed 1.4 percent for a third day of gains.

     Energy companies slid 1.3 percent as oil prices extended a selloff. The sector has plunged 15 percent since reaching a record on June 23.

     Exxon dropped 0.8 percent to $94.66. Helmerich & Payne Inc., a contract driller, slipped 6.7 percent to $79.79 for the biggest drop in the S&P 500.

     The energy sector trimmed losses after the Wall Street Journal reported the talks between Halliburton and Baker Hughes, in what would be one of the largest takeovers of a U.S. energy company in years.

     Baker Hughes surged 15 percent to $58.75. The third-largest oilfield services provider has a market capitalization of more than $25 billion. Halliburton rose 1.1 percent to $53.79.

     DreamWorks Animation surged 14 percent to $25.52. The film studio, led by Jeffrey Katzenberg, is asking for more than $30 a share from Hasbro, said one of the people. The discussions are preliminary the people said. Hasbro sank 4.3 percent to $54.98.

     Procter & Gamble Co. fell 1 percent to $88.60. Berkshire Hathaway Inc. agreed to pay $4.7 billion in P&G shares held by Warren Buffett’s company to acquire the Duracell battery business. Berkshire Class B shares rose 0.5 percent to $146.29.

     “These M&A deals that are happening lend a lot of support to the general investment psyche,” Tom Sudyka, president of Lawson Kroeker Investment Management in Omaha, Nebraska, said in a phone interview. His firm oversees about $500 million. “Grinding higher is the best course at this point.”

 

Have  a wonderful evening everyone.

 

Be magnificent!

The characteristic of my nation is this transcendentalism,

this struggle to go beyond, this daring to tear the veil off the face of nature

and have at any risk, at any price,

a glimpse of the beyond.

 

Swami Vivekananda

As ever,

 

Carolann

 

The moral sense, or conscience, is as much a part of man as his leg or arm.  It is given to all human beings

in a stronger or weaker degree, as force of members is given them in a greater or less degree.  It may be

strengthened by exercise, as may any particular limb of the body.

                                                                                                       -Thomas Jefferson, 1743-1826

 

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

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:

NOVEMBER

It is my belief that every walk should have an objective as well as being a means of taking exercise.  The object of pre-Christmas walks can be to keep an eye open for suitable Christmas decorations, some for the house and some for the church.  We have a wonderful lane which has been walked and ridden for 2,000 years and so is haunted by ghosts of the past and full of good things in its hedges.  Luckily no monster hedging-machine has yet been that way to spoil the growth of blackberries, wild roses, old man’s beard and hazel nuts.  Traditionally the evergreens for Christmas are holly and ivy to provide red and black berries, and mistletoe with its white translucent berries.  These also bring good fortune and protection in the coming year.  Mistletoe, or Kiss-and-Go, grown on apple and poplar trees, is the best for good luck.  In Herefordshire a hundred years ago one third of all the apple trees had mistletoe growing on them.  Each New Year’s Eve a bough was picked and hung indoors as the clock struck twelve, the piece from the previous year being taken down and burnt.  In nearby Worcestershire the chosen mistletoe branch was decked with nuts and ripe apples, tied with a ribbon and hung in the middle of the room.  The just-marrieds would kiss under it and pick a berry, and then they would be blessed with a baby before next Christmas.  –Rosemary Verey, A Countrywoman’s Notes, foreward by H.R.H The Prince of Wales, 2009.

PHOTOS OF THE DAY

Crowds watch as volunteers in the castle moat remove ceramic poppies as work begins to dismantle the art installation ‘Blood Swept Lands and Seas of Red’ at the Tower of London in London. Toby Melville/Reuters

French National Centre for Space Studies (CNES) president Jean-Yves Le Gall, French President Francois Hollande, and former French minister and astronaut Claudie Haignere, wear 3D glasses as they visit the Cite des Sciences at La Villette during a broadcast of the Rosetta mission as it orbits around comet 67/P Churyumov-Gersimenko in Paris. Jacques Brinon/AP

Market Closes for November 12^th, 2014    

Market Index	Close	Change
Dow Jones	17612.20	-2.70
		-0.02%
S&P 500	2038.25	-1.43   -0.07%
NASDAQ	4675.137	+14.581   +0.31%
TSX	14856.20	+95.93
		+0.65%

International Markets

Market Index	Close	Change
NIKKEI	17197.05	+72.94
		+0.43%
HANG SENG	23938.18	+129.90
		+0.55%
SENSEX	28008.90	+98.84
		+0.35%
FTSE 100	6611.04	-16.36
		-0.25%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.057	2.058
CND. 30 Year Bond	2.621	2.615
U.S.    10 Year Bond	2.3694	2.3568
U.S. 30 Year Bond	3.1006	3.0894

Currencies

BOC Close	Today	Previous
Canadian $	0.88386	0.87911
US $	1.13140	1.13751
Euro Rate 1 Euro=		Inverse
Canadian $	1.40726	0.71060
US $	1.24383	0.80397

Commodities

Gold	Close	Previous
London Gold Fix	1160.01	1151.90
Oil	Close	Previous
WTI Crude Future	77.18	77.40

Market Commentary:

Canada

By Eric Lam

     Nov. 12 (Bloomberg) — Canadian stocks rose a sixth day, the longest run since June, as gold mining and energy companies climbed and the nation’s largest banks rallied to a seven-week high.

     Detour Gold Corp. and Semafo Inc. climbed more than 3.1 percent as gold shares rose a second day. Legacy Oil & Gas Inc. and BlackPearl Resources Inc. gained at least 5.3 percent to pace an advance among energy companies. Loblaw Cos. surged to a nine-year high after posting better-than-expected earnings on growing sales.

     The Standard & Poor’s/TSX Composite Index rose 95.93 points, or 0.7 percent, to 14,856.20 at 4 p.m. in Toronto, the highest close since Sept. 30. The index has increased 3.2 percent in the past six days.

     Toronto-Dominion Bank increased 1 percent to C$57 and Royal Bank of Canada advanced 0.6 percent to C$82.25 as the S&P/TSX Banks Index posted a third straight gain, closing at the highest level since Sept. 24.

     Loblaw jumped 3.4 percent to C$60.10, the highest close since December 2005, to lead a 1.4 percent advance in the S&P/TSX Consumer Staples Index. The grocer posted increasing year-over-year sales and cost savings after the addition of pharmacy company Shoppers Drug Mart. The company also said it will open 84 Joe Fresh clothing retailers in Mexico and Central America.

     Detour Gold gained 3.1 percent to C$8.67 and Semafo soared 3.6 percent to C$3.17. The S&P/TSX Gold Index rose 0.3 percent for a second day of gains as 17 of 24 members advanced.

     Nine of 10 industries in the S&P/TSX rose on trading volume 3.8 percent lower than the 30-day average.

     Brent crude for December settlement lost 1.6 percent to $80.38 a barrel in London to decline for a third day. The price earlier fell below $80 a barrel for the first time in four years. OPEC said its production dropped by 226,400 barrels a day to 30.253 million in October, the biggest decrease since March.  West Texas Intermediate also fell.

US

By Oliver Renick

     Nov. 12 (Bloomberg) — The Standard & Poor’s 500 Index halted a five-day rally, while small-cap shares rose to the highest level since July, as gains among phone and consumer stocks offset losses in utilities and growing concern over slowing growth in Europe.

     Exelon Corp. led utility shares to the biggest drop since June as the U.S. and China agreed on new carbon cuts to fight climate change. Bank shares slumped 0.5 percent after regulators in Europe and the U.S. fined six lenders to settle a probe into the rigging of foreign-exchange benchmarks. Verizon Communications Inc. and AT&T Inc. climbed at least 0.9 percent. Macy’s Inc. added 5.1 percent after posting a gain in profit last quarter.

     The S&P 500 lost 0.1 percent to 2,038.25 at 4 p.m. in New York, trimming an earlier drop of 0.4 percent. The Dow Jones Industrial Average declined 2.7 points, or less than 0.1 percent, to 17,612.20. Both gauges closed at all-time highs yesterday. About 5.9 billion shares traded hands today, 8.7 percent below the three-month average.

     The Nasdaq Composite Index gained 0.3 percent to the highest since March 2000, while the Russell 2000 Index of small companies added 0.6 percent to cap a six-day rally, its longest since June. The Chicago Board Options Exchange Volatility index, the gauge of options prices known as the VIX, added 0.8 percent to 13.02.

     “There was some nervousness at first out of Europe but as often is the case some of that’s fading as European markets close and we don’t see any real earnings blowups or economic data that’s hurt the market,” Steve Bombardiere, an equity trader at Conifer Securities LLC in New York, said by phone. “As it happens very often, we see a dip and people buy in, there’s still some fear in the market that if you don’t buy in, you’re left watching.”

     The S&P 500 had gained for five straight sessions, bringing its advance from a six-month low in October to 9.5 percent, as better-than-estimated corporate earnings and economic data boosted confidence the U.S. economy is weathering a global slowdown. The Dow’s decline today halted a six-day streak.

     The broader index fell as much as 9.8 percent from a September record on increasing signs that European growth was slowing at the same time the Federal Reserve was ending its monthly bond purchases.

     Concerns that European struggles may weigh on the U.S. economy were stoked today after Bank of England Governor Mark Carney unveiled lower U.K. growth and inflation forecasts as officials adjusted to account for “moribund” global expansion and stagnation in Europe.

     “Europe is doing everything it can to rev up their economies but the problem with Europe is it’s so fractured that you can’t get them to work together,” Joe Franklin, president of Franklin Wealth Management in Hixson, Tennessee. “The main issue is these countries need to work together.                        

     European Central Bank President Mario Draghi’s move to quantitative easing has met resistance from German Chancellor Angela Merkel, who has advocated fiscal discipline across the euro area. Last week, Draghi stoked investor speculation that he’ll intensify stimulus for the euro area after indicating he has the backing of policy makers to do so.

     Investors are also watching developments in Ukraine, where the country’s defense minister said the military should prepare for clashes, as growing tensions in the nation’s eastern combat zone threatened to boil over into open conflict.

     The Stoxx Europe 600 Index sank 1.1 percent today.

     Data in the U.S. today showed September wholesale inventories increased faster than estimated.

     Six of the 10 main S&P 500 groups advanced today, with phone shares rising 0.8 percent to pace gains.

     Utilities sank 2 percent to lead declines, with Exelon sliding 3.5 percent to $35.93. The group has rallied 19 percent this year, the second-most in the index.

     President Barack Obama pledged deeper U.S. cuts in greenhouse-gas emissions and China will for the first time set a target for capping carbon emissions. Electricity generation is responsible for about a third of U.S. greenhouse gas emissions by economic sector, according to the U.S. Environmental Protection Agency.

     Citigroup declined 0.7 percent to $53.42 and JPMorgan Chase & Co. slipped 1.3 percent to $60.56 after regulators fined them about $1 billion each. Bank of America dropped 0.2 percent to $17.29.

     Banks and individuals could still face further penalties and litigation following the 13-month probe into allegations dealers at the biggest banks colluded with counterparts at other firms to rig benchmarks used by fund managers to determine what they pay for foreign currency.

     JM Smucker dropped 3.5 percent to $100.38. The seller of peanut butter to coffee and pickles cut its forecast for adjusted earnings in its current fiscal year.

     Retailers of consumer durables and apparel gained 1.1 percent amid corporate earnings results. Macy’s jumped 5.1 percent to $61.57 after posting a 23 percent gain in net income last quarter.

     Fossil Group Inc. jumped 8.4 percent to $112.48 for the biggest gain in the S&P 500. The company announced a $1-billion share repurchase plan. The watchmaker posted third-quarter earnings of $1.96 a share, exceeding the average analyst projection of $1.82.

     Susquehanna Bancshares Inc. rallied 33 percent to $13.12. BB&T, North Carolina’s second-largest bank, agreed to buy the lender for a premium of about 39 percent over yesterday’s closing price. BB&T Corp. slipped 1.7 percent to $37.67.

     ADT Corp. jumped 3.1 percent to $36.77. The electronic security service company reported third-quarter earnings and revenue that beat analysts’ estimates.

 

Have a wonderful evening everyone.

 

Be magnificent!

The fact that there are so many men still alive in the world

shows that it is based not on the force of arms but on the force of truth or love.

Therefore, the greatest and most impeachable evidence of the success of this force

is to be found in the fact that, in spite of all the wars of the world,

it still lives on.

Mahatma Gandhi

 

As  ever,

 

Carolann

 

I am not an adventurer by choice but by fate.

                   -Vincent van Gogh, 1853-1890

 

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

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:

Gillian Tett, in her most recent weekend column in the Financial Times, described  the wedding of Robert Hormats to Catherine Azmoodeh as being “memorable for many reasons, not least of which  a bride and groom so besotted they repeatedly declared their love to the glitzy crowd” ( Hormats is a former high-ranking official in the administration of US President Barack Obama).  She writes:  “But the most striking moment arose when, halfway through the ceremony, the bride’s father, whose family comes originally from Tehran stepped forward and read an extract from a poem in Persian. 

Az mohabbat talkh-ha shirin shaved
Az mohabbat mes-ha zarrin shaved
Az mohabbat dord-ha safi shaved
Az mohabbat dard-ha shafi shaved.

He then translated:

By love, the bitter becomes sweet;
By love, copper becomes gold;
By love, dregs become clear,
By love, pains become healing.

         -by the 13^th-century Muslim scholar and philosopher from the mystical Sufi tradition, Jalal ad-Din Rumi.

…Perhaps it is time to include some Rumi poetry not just at weddings but also on the syllabus of American and European schools; if for nothing else than to show western children that there is far more to Islam than the tragedies the see on their screens.”

“Sesame Street” premiered on this day in 1969. The show was created by Joan Ganz Cooney and Lloyd Morrisett. Today Sesame Street is broadcasted in more than 120 countries and has reached more than 82 million children.

Also on this day, in 1983, Bill Gates unveiled a new computer operating system – Windows 1.

PHOTOS OF THE DAY

Turks stand for a minute of silence as the Turkish Stars, the Turkish army’s aerobatic demonstration team, shape a heart over the mausoleum of Mustafa Kemal Ataturk, hero of the War of Independence and founding father of the modern Turkish Republic at 9:05 a.m., marking the 76th anniversary of his death, in Ankara, Turkey. AP

The view from the new glass floor of the viewing platform as people and cars pass below, as members of the media are among the first people to tour the new viewing platform with a newly installed glass floor, atop Tower Bridge in London, 138 feet above the River Thames. The one million pound improvement to install the glass floor will allow visitors a view of the road and ships passing below as the historic bridge lifts its roadway to allow tall ships to pass underneath. John Stillwell/AP

Market Closes for November 10^th, 2014    

Market Index	Close	Change
Dow Jones	17613.74	+39.81
		+0.23%
S&P 500	2036.53	+4.61   +0.23%
NASDAQ	4651.617	+19.085   +0.41%
TSX	14692.87	+2.04
		+0.01%

International Markets

Market Index	Close	Change
NIKKEI	16780.53	-99.85
		-0.59%
HANG SENG	23744.70	+194.46
		+0.83%
SENSEX	27874.73	+6.10
		+0.02%
FTSE 100	6611.25	+44.01
		+0.67%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.058	2.027
CND. 30 Year Bond	2.615	2.594
U.S.    10 Year Bond	2.3568	2.2976
U.S. 30 Year Bond	3.0894	3.0280

Currencies

BOC Close	Today	Previous
Canadian $	0.87911	0.88278
US $	1.13751	1.13279
Euro Rate 1 Euro=		Inverse
Canadian $	1.41301	0.70771
US $	1.24220	0.80502

Commodities

Gold	Close	Previous
London Gold Fix	1151.90	1177.98
Oil	Close	Previous
WTI Crude Future	77.40	78.65

Market Commentary:

Canada

By Eric Lam

     Nov. 10 (Bloomberg) — Canadian stocks rose a fourth day, extending a one-month high, as gains at BlackBerry Inc. and among financial shares overshadowed a slump in commodity producers.

     Sun Life Financial Inc. and IGM Financial Inc. added at least 2 percent to pace gains among financial services firms.  Detour Gold Corp. and Silver Standard Resources Inc. sank more than 8.8 percent as metals prices declined. Trilogy Energy Corp. and Athabasca Oil Corp. tumbled at least 7.1 percent as crude slipped on speculation OPEC is in no hurry to cut output. BlackBerry advanced 5.8 percent as Chief Executive Officer John Chen seeks partnerships in China.

     The Standard & Poor’s/TSX Composite Index rose 18.97 points, or 0.1 percent, to 14,709.80 at 4 p.m. in Toronto. The index has increased 2.2 percent in the past four days.

     Data today showed housing starts in Canada dropped unexpectedly to 183,600 in October from 197,400 the previous month as both urban and rural construction slowed. Analysts had forecast 200,000 starts.

     Cott Corp. rallied 3.1 percent to C$7.43 and Loblaw Cos. gained 2.4 percent to C$58.55 as consumer staples stocks climbed 1.9 percent as a group, the most in the S&P/TSX. Eight of 10 industries increased on trading volume in line with the 30-day average.

     Raw-materials producers slumped 2.8 percent as a group, while energy producers tumbled 1 percent. The two groups together account for about a third of the S&P/TSX.

     The S&P/TSX Gold Index sank 5.7 percent as 23 of 24 members retreated. Gold prices slid 0.9 percent in New York after reaching a four-year low last week.

     Athabasca Oil dropped 7.1 percent to C$3.29 and Trilogy Energy retreated 7.2 percent to C$13.95. West Texas Intermediate crude lost 1.6 percent to $77.40 a barrel in New York, while Brent settled at a four-year low. Kuwait’s oil minister said he doesn’t expect OPEC to trim production at the group’s next meeting in Vienna on Nov. 27.

     BlackBerry rallied 5.8 percent to C$12.63, the highest since June 2013. BlackBerry CEO Chen met with the heads of Xiaomi Corp. and Lenovo Group Ltd. and is interested in growing the business there, he said in an interview with Bloomberg News in Beijing. Chen took over the struggling smartphone maker last November.

US

By Oliver Renick

     Nov. 10 (Bloomberg) — U.S. stocks advanced, with the Standard & Poor’s 500 Index extending an all-time high, as investors watched corporate results and speculated the economy is strong enough to withstand a global slowdown.

     Dean Foods Co. rallied 14 percent after reporting profit that topped forecasts. Toll Brothers Inc. climbed 2.3 percent to lead homebuilders higher after saying it expects to report sales that beat analysts’ estimates. Time Warner Cable Inc. and Comcast Corp. dropped at least 4 percent after President Barack Obama called for rules protecting an open Internet. Dendreon Corp. sank 81 percent after the maker of a prostate-cancer drug filed for bankruptcy.

     The S&P 500 rose 0.3 percent to 2,038.26 at 4 p.m. in New York for a fourth day of gains. The Dow Jones Industrial Average climbed 39.81 points, or 0.2 percent, to 17,613.74, a record after five straight advances.

     “The numbers in the third quarter showed a steady economy, we continue to have oil below $80, consumers feeling confident, low interest rates, and that’s a combination that works well for stocks,” Mark Kepner, an equity trader at Chatham, New Jersey- based Themis Trading LLC, said by phone. “Central banks have also been quite accommodative in what they’ve been saying and it seems to be working.”

     U.S. companies added 230,000 workers to payrolls in October, ADP Research Institute reported last week. The jobless rate unexpectedly fell to a six-year low, even as more people entered the labor forcer. Earlier this month, The Bloomberg Consumer Comfort Index climbed to the second-highest level since 2008, as West Texas Intermediate crude oil fell to below $80 for the first time since 2009.

     The S&P 500 has rebounded 9.4 percent from a six-month low on Oct. 15 amid better-than-estimated corporate results and economic data indicating the economy is strong enough to overcome any effects from a global slowdown and the end of Federal Reserve bond buying. The index rose 0.7 percent last week for a third straight gain and closed Nov. 7 at a record.

     The Chicago Board Options Exchange Volatility index fell 3.4 percent to 12.67. The gauge of S&P 500 options has fallen 9.7 percent this month.

     Last week’s rally “celebrated the fundamentals” as earnings and economic data point to “sustainability” of the expansion, John Stoltzfus, Oppenheimer & Co. chief market strategist, wrote in a note to investors today.

     Stoltzfus raised his year-end target for the S&P 500 to 2,080 from 2,014, implying a 2.4 percent gain from Nov. 7. The median target of strategists in a Bloomberg survey was 2,040.

     Cisco Systems Inc. and Wal-Mart Stores Inc. are among S&P 500 companies that report earnings this week. Of those that have posted results so far, 80 percent beat estimates for profit and 60 percent topped sales estimates, according to data compiled by Bloomberg.

     “There is no downward pressure and people are waiting for another leg upwards,” Herbert Perus, who helps oversee $36 billion as head of equities at Raiffeisen Capital Management in Vienna, said in a phone interview. “One of the triggers could be the company news out this week with quarterly figures from Cisco and Wal-Mart.”

     Eight of the 10 main S&P 500 groups advanced today, with health-care stocks rebounding to gain 1 percent. Energy shares sank 0.8 percent as oil resumed a selloff.

     The Dow Jones Transportation Average added 1.3 percent to a record, with JetBlue Airways Corp. leading gains as crude oil futures lost 1.7 percent.

     An S&P index of homebuilders rallied 1.3 percent. Lennar Corp. surged 1.7 percent to the highest since June 2007, and PulteGroup Inc. added 1.8 percent as nine of 11 members in the gauge advanced.

     Dean Foods advanced 14 percent, the most in two years, to $16.40 after reporting third-quarter revenue of $2.37 billion, compared with the consensus analyst estimate of $2.35 billion.

     Abercrombie & Fitch Co. retreated 2.8 percent to $28.69 after Oppenheimer & Co. downgraded the shares to market perform, or hold, from outperform, or buy.

     Time Warner Cable lost 4.9 percent to $136.50 and Comcast fell 4 percent to $52.95. Obama called for the “strongest possible rules” to protect the open Internet, saying there shouldn’t be “fast lanes” and that high-speed service should be regulated.

     Dendreon sank 81 percent to 18 cents. The maker of Provenge filed for Chapter 11 bankruptcy protection, potentially wiping out shareholders.

 

Have a wonderful evening everyone.

 

Be magnificent!

It is quite evident that our world is useful and that it provides for our needs,

but our connection to it does not end there.

We are united to it by a connection much larger and more truthful than that of necessity.

Our soul is drawn to it; our love of life is in reality a desire in us to seek our connection with this universe.

And this connection is love.

 

Rabindranath Tagore

As ever,

 

Carolann

 

Encourage all your virtuous dispositions, and exercise them whenever

an opportunity arises; being assured that they will gain strength by exercise,

as a limb of the body does, and that exercise will make them habitual.

                                                  -Thomas Jefferson, 1743-1826

 

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

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:

Life admits not of delays; when pleasure can be had, it is fit to catch it.  –Dr. Johnson.

An idea for an autumn day…from The Book of Idle Pleasures, edited by Tom Hodgkinson & Dan Kieran, (Ebury Press):

Leaf Catching

The first autumn leaves are beginning to flutter down around my house, signaling the start of a traditional family ritual.  To ensure good luck for the next twelve months it is important that, when autumn winds are blowing, we go outside and catch – or try to catch – twelve falling leaves.  It sounds easy, but twisting, spiraling, flying leaves are not easy to snatch out of the air.  And the competition for extra colourful or nice-shaped specimens can be fierce when a flurry of them whiz past, making for excellent and sometimes quite violent sport.

PHOTOS OF THE DAY

Strollers make their way through the vineyards near Fellbach, southern Germany. Sebastian Kahnert/AP

People walk between luminous white balloons along the former route of the Berlin Wall, in Berlin, Germany. They are part of the project ‘Lichtgrenze 2014’ on occasion of the 25th anniversary of the fall of the Berlin Wall on Nov. 9, 1989. Markus Schreiber/AP

Market Closes for November 7^th, 2014    

Market Index	Close	Change
Dow Jones	17573.93	+19.46
		+0.11%
S&P 500	2031.92	+0.71   +0.03%
NASDAQ	4632.531	-5.938   -0.13%
TSX	14690.83	+127.45
		+0.88%

International Markets

Market Index	Close	Change
NIKKEI	16880.38	+87.90
		+0.52%
HANG SENG	23550.24	-99.07
		-0.42%
SENSEX	27868.63	-47.25
		-0.17%
FTSE 100	6567.24	+16.09
		+0.25%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.027	2.084
CND. 30 Year Bond	2.594	2.639
U.S.    10 Year Bond	2.2976	2.3847
U.S. 30 Year Bond	3.0280	3.1014

Currencies

BOC Close	Today	Previous
Canadian $	0.88278	0.87542
US $	1.13279	1.14231
Euro Rate 1 Euro=		Inverse
Canadian $	1.40906	0.70970
US $	1.24388	0.80393

Commodities

Gold	Close	Previous
London Gold Fix	1177.98	1141.59
Oil	Close	Previous
WTI Crude Future	78.65	77.91

Market Commentary:

Canada

By Eric Lam

     Nov. 7 (Bloomberg) — Canadian stocks rose a third day, to a one-month high, as unemployment rates in both Canada and the U.S. unexpectedly fell to a six-year low last month and gold and crude producers rallied.

     Kinross Gold Corp. and Detour Gold Corp. rallied at least 12 percent as gold producers increased the most in the Standard & Poor’s/TSX Composite Index. Raging River Exploration Inc. jumped 13 percent on better-than-projected earnings. Penn West Petroleum Ltd. and Enerplus Corp. gained as crude advanced.

     The S&P/TSX rose 127.45 points, or 0.9 percent, to 14,690.83 at 4 p.m. in Toronto, the highest close since Oct. 6. The index has rallied for four weeks, the longest streak since March, rebounding 5.9 percent from a low on Oct. 15.

     Canada’s unemployment rate dropped to 6.5 percent in October, compared with 6.8 percent the previous month, Statistics Canada said today in Ottawa. Employment rose by 43,100 after a jump of 74,100 in September on hiring led by retailers and financial companies.

     Employment gains in the U.S. exceeded 200,000 for a ninth straight month in October and the jobless rate declined to 5.8 percent, even as more people entered the labor force.

     Kinross jumped 12 percent to C$2.84 for a second day of gains and Detour Gold advanced 28 percent to C$8.27, the most in six years, as raw-materials producers climbed 4.7 percent as a group. Gold for December delivery rose 2.4 percent to $1,169.80 an ounce in New York, the most since June. The metal fell in the previous seven sessions.

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

     Raging River rose 13 percent to C$8.39, its biggest increase ever, after boosting its 2014 production guidance. Penn West added 5.8 percent to C$4.89 and Enerplus rallied 10 percent to C$16.74. The S&P/TSX Energy Index increased 2.3 percent.

     West Texas Intermediate increased 0.9 percent to settle at $78.65 in New York, paring a weekly decline to 2.3 percent.  Prices are down 20 percent for the year.

US

By Joseph Ciolli and Oliver Renick

     Nov. 7 (Bloomberg) — U.S. stocks held at all-time highs as a report showed companies hired fewer workers than forecast while the jobless rate dropped to a six-year low, supporting speculation the economy is withstanding an overseas slowdown.

     Energy stocks rallied as Diamond Offshore Drilling Inc. and Newfield Exploration Co. climbed more than 3 percent. Sears Holdings Corp. soared 31 percent on plans to explore the sale and leaseback of 200 to 300 stores. Walt Disney Co. slid 2.2 percent after it reported profit fell at TV networks. Salix Pharmaceuticals Ltd. tumbled 34 percent after its chief financial officer resigned.

     The Standard & Poor’s 500 Index added less than 0.1 percent to 2,031.92 at 4 p.m. in New York. The Dow Jones Industrial Average climbed 19.46 points, or 0.1 percent, to 17,573.93. Both gauges closed at records. The Nasdaq Composite Index dropped 0.1 percent.

     “We’re moving toward pause mode and a period of digestion following the rally of the past few weeks,” Terry Sandven, chief equity strategist at Minneapolis-based U.S. Bank Wealth Management, which oversees $120 billion, said by phone. “The market rallied in expectation of a generally positive employment report, which occurred with non-farm payrolls over 200,000. But average wages being flat implies the pace of growth is somewhat slow, so valuations may increasingly become an issue.”

     While employment gains exceeded 200,000 for a ninth straight month in October, the 214,000 increase fell short of the 235,000 forecast by economists. The result followed a 256,000 advance the prior month that was more than initially estimated, Labor Department figures showed today.

     The jobless rate declined to 5.8 percent, even as more people entered the labor force, boosting the share of the population working to the highest in five years. Steadfast hiring signals employers are confident domestic demand will hold up in the face of struggling European and emerging economies.

     “We’ve seen a shift away from ‘will we grow?’ to one of ‘how fast will we grow?” Jeff Korzenik, the Chicago-based chief investment strategist at Fifth Third Bancorp., said a phone interview. The firm oversees $26 billion. Today’s payrolls report “is moderately disappointing in terms of the pace of growth, but there is no question that this is evidence of continued growth.”

     The S&P 500 rose 0.7 percent this week, a third straight gain, after election results shifted control of the Senate from Democrats to Republicans and the European Central Bank vowed to increase stimulus efforts if needed.                       

     Federal Reserve Chair Janet Yellen said central banks must do whatever it takes if governments won’t use the public purse to invigorate economies struggling with low growth and below- target inflation.

     “Central banks need to be prepared to employ all available tools, including unconventional policies, to support economic growth and reach their inflation targets,” Yellen said in the text to be delivered today at a Bank of France event in Paris.

     The S&P 500 has rebounded more than 9 percent from a six- month low on Oct. 15 as companies beat analysts’ earnings estimates at the fastest pace in four years. Of the S&P 500 members that have reported their latest quarterly results, 80 percent topped profit projections, while 60 percent beat sales estimates, according to data compiled by Bloomberg.

     The Chicago Board Options Exchange Volatility Index slipped 4 percent to 13.12, the lowest level since Sept. 19. The gauge of S&P 500 options prices dropped 6.5 percent this week.

     Seven out of the 10 major industries in the S&P 500 advanced today. Utilities shares rose the most, adding 1 percent. The energy sector rose 0.9 percent as oil prices climbed from near a three-year low. Health-care companies dropped 0.9 percent for the biggest losses.

     Sears soared 31 percent to $42.81. The selected outlets would be sold to a newly formed real-estate investment trust, the company said in a statement. The retailer last month announced a rights offering in a bid to raise capital that will give it time to return to profitability.

     King Digital Entertainment Plc rallied 4 percent to $13.72. While total sales fell 17 percent to $514.4 million from a year earlier, they beat analyst estimates for $491.1 million. Forty- nine percent of third-quarter bookings came from games other than Candy Crush, compared with 41 percent a year earlier.

     Disney dropped 2.2 percent to $90 after saying profit fell at TV networks, its biggest division. The world’s largest entertainment company said profit excluding some items rose to 89 cents a share, beating the 88-cent average of estimates compiled by Bloomberg.

     First Solar Inc. retreated 11 percent to $50.29. Profit slipped in the third quarter as the largest U.S. photovoltaic panel manufacturer seeks to land new orders for power plants to replace the giant desert projects that led to record sales last year.

     Salix tumbled 34 percent to $91.47. The drugmaker said Chief Financial Officer Adam Derbyshire resigned, and the audit committee will review the way the company characterized wholesale inventory. Salix also cut its profit and net product revenue forecasts for this year, according to an earnings report yesterday.

     Health-care companies had the largest declines today. The U.S. Supreme Court agreed to consider a challenge to the subsidies that are a linchpin of President Barack Obama’s health-care overhaul, accepting a case that suddenly puts the law under a new legal cloud.

     Health insurers, which have gained millions of new customers through the law, sank. UnitedHealth Group Inc., WellPoint Inc. and Aetna Inc. fell at least 2.7 percent. Hospitals, which must absorb costs when patients are uninsured, also dropped, with HCA Holdings Inc. and Tenet Healthcare Corp. sliding at least 4.7 percent.
 

Have a wonderful weekend everyone.

 

Be magnificent!

 

There is one God and He

is the enemy of no one.

Guru Nanak

As ever,

 

Carolann

 

A compliment is something like a kiss through a veil.

                                    –Victor Hugo, 1802-1885

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Full moon tonight!  Enjoy the beauty.

PHOTOS OF THE DAY

A full moon rises seen from a hilltop overlooking the Syrian city of Kobani, outside Suruc, on the Turkey-Syria border. Kobani, also known as Ayn Arab, and its surrounding areas, has been under assault by extremists of the Islamic State group since mid-September and is being defended by Kurdish fighters. Vadim Ghirda/AP

A murmuration of starlings put on a display near the town of Gretna, Scotland. Owen Humphreys/AP

Market Closes for November 6^th, 2014    

Market Index	Close	Change
Dow Jones	17554.47	+69.94
		+0.40%
S&P 500	2031.21	+7.64   +0.38%
NASDAQ	4638.469	+17.746   +0.38%
TSX	14563.38	+15.12
		+0.10%

International Markets

Market Index	Close	Change
NIKKEI	16792.48	-144.84
		-0.86%
HANG SENG	23649.31	-46.31
		-0.20%
SENSEX	27915.88	+55.50
		+0.20%
FTSE 100	6551.15	+12.01
		+0.18%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.084	2.050
CND. 30 Year Bond	2.639	2.599
U.S.    10 Year Bond	2.3847	2.3424
U.S. 30 Year Bond	3.1014	3.0590

Currencies

BOC Close	Today	Previous
Canadian $	0.87542	0.87793
US $	1.14231	1.13905
Euro Rate 1 Euro=		Inverse
Canadian $	1.41337	0.70753
US $	1.23728	0.80822

Commodities

Gold	Close	Previous
London Gold Fix	1141.59	1140.85
Oil	Close	Previous
WTI Crude Future	77.91	78.68

Market Commentary:

Canada

By Eric Lam

     Nov. 6 (Bloomberg) — Canadian stocks rose a second day, after gaining the most in two weeks yesterday, as Air Canada and Kinross Gold Corp. rallied on better-than-forecast earnings.

     Air Canada soared 5.4 percent as earnings topped estimates on fuller planes and expanding routes. Kinross rallied the most in six years as sales advanced. Cott Corp. added 3.5 percent after agreeing to buy DSS Group Inc. for about $1.25 billion to expand into new markets. SNC-Lavalin Group Inc. plunged 8.4 percent after the engineering firm reduced its annual profit outlook and said it will cut 4,000 jobs.

     The Standard & Poor’s/TSX Composite Index rose 15.12 points, or 0.1 percent, to 14,563.38 at 4 p.m. in Toronto. The index has rebounded 5 percent from a low on Oct. 15.

     Investors weighed comments by Mario Draghi on the European Central Bank’s stimulus plans. Draghi, speaking at a press conference in Frankfurt, said policy makers were unanimous on the use of more stimulus if needed as the ECB held benchmark interest rates unchanged at record lows.

     Canada building permits rose in September, led by gains in Toronto, by 12.7 percent to C$7.5 billion ($6.58 billion) after a 27.3 percent drop in August, Statistics Canada said. Economists had forecast a 5 percent gain.

     Cott, a maker of private-label soft drinks and ice teas, rose 3.5 percent to C$7.15, paring an earlier gain of as much as 16 percent. The deal accelerates Cott’s strategy of diversifying beyond carbonated drinks and juices and extends the company’s distribution channel beyond large retail and supermarket stores.

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

     SNC, the Montreal-based engineering services company, sank 8.4 percent to C$42.34, the biggest drop in more than two years. The job cuts, which will mostly be outside of Canada, will cost the company C$300 million over the next 18 months. The move comes as slowing economic growth in some emerging markets compounds a global mining slump.

     Pacific Rubiales Energy Corp. slumped 9.1 percent and Penn West Petroleum Ltd. lost 2.5 percent as crude futures slid for a fifth time in six days after OPEC cut forecasts for the amount of oil it needs to supply.

     Kinross surged 12 percent to C$2.54, the strongest rally since November 2008. Kinross posted earnings and sales ahead of analysts’ projections in the third quarter, and said 2014 production is expected to come in at the high end.

     Iamgold Corp. climbed 12 percent to C$1.96 and Barrick Gold Corp. increased 3.6 percent to C$12.97. The S&P/TSX Materials Index advanced 1.9 percent, the most in the broader gauge.

US

By Joseph Ciolli

     Nov. 6 (Bloomberg) — U.S. stocks rose, sending benchmark indexes to records, as the European Central Bank vowed to increase stimulus efforts if needed and a drop in American jobless claims bolstered optimism in the economy.

     Tesla Motors Inc. rose 4.4 percent as it predicted “several years” of 50 percent sales growth amid a surge in orders. Whole Foods Market Inc. rose 12 percent after posting better-than-forecast quarterly profit. Genworth Financial Inc. plunged 38 percent as the insurer predicted a tougher path ahead after a record loss. Qualcomm Inc. slid 8.6 percent after saying a Chinese government probe will curb profit.

     The Standard & Poor’s 500 Index rose 0.4 percent to 2,031.21 at 4 p.m. in New York. The Dow Jones Industrial Average added 69.94 points, or 0.4 percent, to 17,554.47. About 6.8 billion listed shares changed hands in the U.S., about 6 percent higher than the three-month daily average.

     “The policy and macro news were both positive, and that’s giving the market something of a positive bias as we go through the day,” Alan Gayle, who helps oversee about $50 billion as a senior strategist at RidgeWorth Capital Management, said in a phone interview from Atlanta. “Outside of the U.S., other major players are taking aggressive policy steps to stabilize and re- accelerate growth, and that’s putting a floor under the equity markets.”

     Draghi faces pressure to do more to support a slowing euro- area economy after the Bank of Japan last week unexpectedly boosted its stimulus plan. Draghi said policy makers will be ready to implement further stimulus measures if needed as he signaled officials may cut growth forecasts next month. ECB officials were unanimous on more stimulus if needed, Draghi told reporters today after keeping interest rates unchanged.

     In stressing unanimity, Draghi is seeking to smooth over divisions in his own ranks about the precise way the ECB can aid the economy more, as pessimism about the outlook builds. While the central bank is already expanding its range of asset purchases, it has yet to commit to broad-based bond buying, or quantitative easing.

     The S&P 500 and Dow climbed to records yesterday after election results shifted control of the Senate from Democrats to Republicans while a report showed improvement in the labor market.

     The benchmark index has rebounded 9.1 percent from a six- month low on Oct. 15. S&P 500 companies are beating analysts’ earnings estimates at the fastest pace in four years, while recent economic data have pointed to improvements in the U.S. labor market and consumer sentiment.                        

     First-time jobless claims dropped 10,000 to a three-week low of 278,000 in the week ended Nov. 1, the Labor Department reported today. The median forecast of 50 economists surveyed by Bloomberg called for 285,000. The four-week moving average, a less-volatile measure of job cuts, reached the lowest level in more than 14 years.

     Labor Department figures tomorrow may show nonfarm payrolls rose 235,000 last month and that the jobless rate probably held at a six-year low.

     Of the S&P 500 members that have reported their latest quarterly results, 80 percent topped profit projections, while 60 percent beat sales estimates, according to data compiled by Bloomberg.                         

     The Chicago Board Options Exchange Volatility Index, the gauge known as the VIX, fell 3.5 percent to 13.67. The measure surged to 26.25 on Oct. 15 before declining 47 percent through the end of the month.

     The S&P 500 Industrials Index rose for a third day, adding 1.1 percent. Deere & Co. and Agco Corp. climbed more than 2.4 percent amid speculation that the companies will benefit from tax credits following yesterday’s midterm election. The likelihood that two expired tax credits may be retroactively renewed in late 2014 could soften a sales decline for machinery companies like Deere and Agco, according to Bloomberg Industries analysts Caitlin Webber and Karen Ubelhart.

     Tesla rose 4.4 percent after projecting to sell 50,000 Model S cars in 2015. Chief Executive Officer Elon Musk said Tesla is accelerating production and sees 50 percent growth next year lasting “probably for several years.”

     Whole Foods rallied 12 percent. Fiscal fourth-quarter profit topped analysts’ estimates as the grocery-store chain slashed prices to win over bargain-hunting shoppers.

     Gauges of utilities and telecommunications shares declined more than 0.8 percent for the biggest losses among the 10 main industries in the S&P 500. Energy shares rose even as West Texas Intermediate crude slid 1 percent to $77.91. Oil touched the lowest price in three years earlier this week.

     Genworth plunged 38 percent, the most since the financial crisis in 2008. The company yesterday posted a quarterly loss of $844 million, driven by costs tied to its long-term care insurance operation.

     “The turnaround in this business will be more difficult and prolonged,” Chief Executive Officer Tom McInerney said in a statement. “Despite this setback, we remain steadfast in our commitment to transform this business.”

     Qualcomm slid 8.6 percent. A previously disclosed investigation by China’s antitrust regulator into its business practices will hurt sales and profit next year. The chipmaker also said U.S. and European regulators are conducting inquiries related to its licensing and phone-chip businesses.

     The S&P 500 Utilities Index lost 1.8 percent. AES Corp. was the biggest decliner in the group, falling 6.4 percent. The electrical power generator and distributor reported third- quarter sales that fell short of consensus analyst estimates.
 

Have  a wonderful evening everyone.

 

Be magnificent!

The whole universe is to us a writing of the Infinite in the language of the finite.

Swami Vivekananda

As ever,

 

Carolann

 

It’s not hard to make decisions when you know what your values are.

                                                             -Roy Disney, 1930-2009

 

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

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:

November

Why do people spend so much time and energy with the leaf-sweeper?  Here we don’t make bonfires with the fallen leaves – this would be like burning gold dust.  They are gathered tidily into heaps contained by wire netting to make glorious leaf-mould all ready, a year hence, to be spread on the beds and borders.  Three nights ago we had our first hard frost.  The results next morning were beautiful carpets of colour under the horse chestnuts, the plane trees, the gingkos and red-leafed maples.  These carpets are transitory, staying only until the wind swirls them on or the leaf-sweeper gets busy, so I know I must enjoy them while they last, just like the summer scents.  Last night a great wind from the west woke me with the sound of rattling windows and in the morning I saw that the grey-leafed poplar was leafless and so were two willows and the walnut.  The top branches of the lime trees were bare but the oaks and beech and sorbus had managed to cling on to their leaves.  There must be a scientific reason why clipped beech hedges will often hang on to their leaves until springtime, while the beech trees will shed them.  Does the act of clipping reduce their stamina and food supply?  Each leaf cut off in its prime must be robbing the plant of some goodness, so it could be a natural protective measure to enable them to retain every possible remaining nutrient.  Whatever the reason the beauty of the brown beech leaves remains as a lovely bonus in our winter months.

                                                                                  -from a Countrywoman’s Notes  by Rosemary Verey, Forward by H.R.H. The Prince of Wales, Gryffon Publications, Barnsley, Gloucestershire, 1989.

One of my clients in Toronto sent me this photo of the view from his window this past week:

 

PHOTOS OF THE DAY

A man with his hair dyed bright red works near a giant poppy decoration for Remembrance Day at Kings Cross Station in London.Suzanne Plunkett/Reuters

An aerial view shows the French World War One Military Cemetery at Notre Dame de Lorette memorial in Ablain-Saint-Nazaire, northern France. The cemetery is the largest French military cemetery with more than 40,000 soldiers buried here. The ground was the place of a series of long and bloody battles between the French, the Allies and German armies, named as the Three Battles of Artois (September 1914- October 1915). Pascal Rossignol/Reuters

Market Closes for November 5^th, 2014    

Market Index	Close	Change
Dow Jones	17484.53	+100.69
		+0.58%
S&P 500	2023.57	+11.47   +0.57%
NASDAQ	4620.723	-2.915   -0.06%
TSX	14548.26	+157.83
		+1.10%

International Markets

Market Index	Close	Change
NIKKEI	16937.32	+74.85
		+0.44%
HANG SENG	23695.62	-150.04
		-0.63%
SENSEX	27915.88	+55.50
		+0.20%
FTSE 100	6539.14	+85.17
		+1.32%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.050	2.029
CND. 30 Year Bond	2.599	2.577
U.S.    10 Year Bond	2.3424	2.3353
U.S. 30 Year Bond	3.0590	3.0486

Currencies

BOC Close	Today	Previous
Canadian $	0.87793	0.87669
US $	1.13905	1.14066
Euro Rate 1 Euro=		Inverse
Canadian $	1.42198	0.70325
US $	1.24839	0.80103

Commodities

Gold	Close	Previous
London Gold Fix	1140.85	1168.45
Oil	Close	Previous
WTI Crude Future	78.68	77.19

Market Commentary:

Canada

By Eric Lam

     Nov. 5 (Bloomberg) — Canadian stocks rebounded from a two- week low as TransCanada Corp. paced a rally in energy shares on speculation a Republican victory in U.S. elections enhances prospects for the Keystone XL pipeline.

     TransCanada advanced 3 percent as a top priority for Republicans will be to send President Barack Obama a bill to authorize the proposed $8 billion (C$9.11 billion) cross-border pipeline. Energy shares rebounded from a near one-year low. Linamar Corp. surged 11 percent after posting better-than- projected earnings. Avigilon Corp., the surveillance equipment maker, jumped 31 percent as profit improved.

     The Standard & Poor’s/TSX Composite Index rose 157.83 points, or 1.1 percent, to 14,548.26 at 4 p.m. in Toronto, for the biggest increase since Oct. 23. The index has rebounded 4.9 percent from a low on Oct. 15.

     Statistics Canada boosted its second-quarter economic growth estimate today to a 3.6 percent annualized pace from 3.1 percent in August, part of annual revisions dating back to 2011. The expansion in the quarter was the fastest since 2011.

     Republicans have picked up at least seven Senate seats after yesterday’s mid-term elections, positioning Mitch McConnell as the next majority leader.

     TransCanada, the pipeline operator, gained 3 percent to C$56.86, the highest close in a month. TransCanada has been waiting since 2008 for a U.S. decision on the pipeline that would carry crude from Alberta’s oil sands across the border to Gulf Coast refineries.

     While most senators support the proposed Keystone pipeline, the Senate under a Democratic majority hasn’t held a binding vote on the subject since 2012. The Republican-held House has repeatedly voted in favor of construction.

     Eight of the 10 industries in the benchmark Canadian equity gauge advanced today on trading volume 9.3 percent above the 30- day average.

     Whitecap Resources Inc. added 7.3 percent to C$14.83 and Canyon Services Group Inc. increased 9.3 percent to C$10.68 as the S&P/TSX Energy Index rebounded 2.9 percent. Lightstream Resources Ltd. rose 7.3 percent to snap eight days of losses. The stock plummeted 32 percent in that time.

     Keyera Corp. surged 5.1 percent to C$91.95 as earnings topped analysts’ estimates. The natural gas processing company said it will spend C$700 million to C$800 million in each of 2014 and 2015 on growth capital investment, excluding acquisitions.

     Linamar, the auto parts maker, jumped 11 percent to C$63.62, the biggest increase since May, to lead a 2.2 percent gain in consumer discretionary stocks. Competitors Magna International Inc. added 5.9 percent and Martinrea International Inc. rose 6.4 percent.

     Pretium Resources Inc. sank 6.8 percent to C$5.07 and Detour Gold Corp. dropped 13 percent to C$6.15. Gold extended a decline with silver to the lowest levels since 2010.

US

By Joseph Ciolli

     Nov. 5 (Bloomberg) — U.S. stocks rose, sending benchmark indexes to records, as Republicans won their first Senate majority in eight years and a report showed companies added more workers last month than economists forecast.

     Alpha Natural Resources Inc. and Peabody Energy Corp. paced gains in coal producers amid expectations that Republicans will oppose restrictions on the fuel. Utilities also rallied. TripAdvisor Inc. plunged 14 percent a day after an earnings report that fell short of analyst estimates. Biotechnology and Internet shares fell, dragging the Nasdaq Composite Index lower.

     The Standard & Poor’s 500 Index climbed 0.6 percent to 2,023.57 at 4 p.m. in New York, a record closing level. The Dow Jones Industrial Average added 100.69 points, or 0.6 percent, to an all-time high of 17,484.53.

     “With the election results, the strong ISM manufacturing result from the other day and today’s employment report, it continues to improve investor sentiment,” Robert Pavlik, who helps oversee $4.5 billion as chief market strategist at Banyan Partners LLC in New York, said in a phone interview. “The market also likes the fact that the ECB might deliver some additional quantitative easing-type measures.”

     Fourth quarters of midterm years have produced average equity gains of 8 percent in the past 65 years, according to the Stock Trader’s Almanac. They’ve been followed by rallies of almost that much in the next three months, making the average 16 percent two-quarter rally the best combination of the election cycles.                     

     The S&P 500 has risen an average 15.1 percent in calendar years when a Democratic president has been opposed by a Republican-controlled Congress since 1945, according to S&P Capital IQ equity strategist Sam Stovall.

     Stocks haven’t needed a united Congress to post gains during the bull market that began in March 2009. Since Nov. 2, 2010, when Republicans won a majority in the House while Democrats held the Senate, the S&P 500 has gained 69 percent, including a 30 percent rally in 2013 that was the biggest annual advance since 1997.

     Republicans retained control of the House and won enough seats to reclaim a Senate majority held by Democrats since 2006. Mitch McConnell, a Kentucky Republican, is poised to become the next Senate majority leader and set the legislative agenda for the final two years of Barack Obama’s presidency. McConnell has pledged to chip away at the 2010 health-care law and combat government efforts to curb carbon emissions. McConnell and President Barack Obama spoke today about moving forward on a tax-law revision and trade agreements.                       
    
    “There will be no government shutdowns and no default on the national debt,” McConnell, 72, told reporters today.  “Gridlock in Washington can be ended.”

     President Obama said that he’s committing to considering ideas “not by whether they are from Democrats or Republicans, but whether they work for the American people.”

     The S&P 500 fell 0.3 percent yesterday as energy companies led losses amid a drop in oil prices. The gauge has rebounded about 8.7 percent from a six-month low on Oct. 15 low. S&P 500 companies are beating analysts’ earnings estimates at the fastest pace in four years, while recent economic data have pointed to improvements in the U.S. labor market and consumer sentiment.                      

     Of the S&P 500 members that have reported their latest quarterly results, 82 percent topped profit projections, while 61 percent beat sales estimates, according to data compiled by Bloomberg.

     U.S. companies added 230,000 workers to payrolls in October, ADP Research Institute reported today. The median forecast of economists surveyed by Bloomberg called for an increase of 220,000. The report came before a Nov. 7 Labor Department report projected to show private payrolls rose by 225,000 last month, according to a Bloomberg survey. The jobless rate probably held at a six-year low of 5.9 percent, the survey showed.

     Separate data today showed service industries in the U.S. sustained a faster pace of expansion in October than in the first half of the year.

     While the Institute for Supply Management’s non- manufacturing index decreased to 57.1 from the prior month’s 58.6, readings greater than 50 signal growth and last month’s outcome exceeded the 54.4 average for the first six months of 2014.

     “There’s been a slight bump on the election result last night,” Walter “Bucky” Hellwig, who helps manage $17 billion at BB&T Wealth Management in Birmingham, Alabama, said in a phone interview. “The ADP number was in line with what people were expecting, which is helping, and we have the payroll data coming out on Friday.”

     Gauges of utility and energy shares increased more than 1.7 percent for the biggest gains among the 10 main industries in the S&P 500. Energy shares extended their advance as oil rebounded following a government report that showed a smaller- than-projected increase in U.S. supplies. West Texas Intermediate crude added $1.49 to $78.68 a barrel after yesterday touching the lowest price in three years.

     Alpha Natural Resources surged 17 percent and Peabody Energy increased 4.8 percent. McConnell has said that he wants to attach provisions to spending bills that would curtail coal plant regulations.

     TransCanada Corp.’s U.S. shares advanced 3.3 percent on speculation Republican victories will bolster support for the Keystone XL pipeline. The company has been waiting since 2008 for a U.S. decision on the pipeline, which would carry crude from Alberta’s oil sands across the border to Gulf Coast refineries. Victories by Republicans Joni Ernst in Iowa and Cory Gardner in Colorado boosted support for the project.

     Hospital operators Tenet Healthcare Corp. and Community Health Systems Inc. fell more than 3 percent amid speculation that Republicans will repeal Obamacare now that the party has taken control of the Senate.

     NRG Energy Inc. rallied 7.8 percent. The operator of power- generating facilities climbed after reporting third-quarter profits that exceeded analyst forecasts.

     Time Warner Inc. climbed 4 percent to $77.99. The company beat analysts’ profit estimates last quarter after collecting higher fees for its TV channels.

     TripAdvisor plummeted 14 percent, about three times more than any other stock in the S&P 500. The online travel research company reported third-quarter earnings that were 20 percent short of the average analyst estimate.                         

     The Nasdaq 100 Index reversed an earlier gain to close down 0.1 percent. Google Inc., Intel Corp. and Amazon.com Inc. fell at least 1.5 percent.

     Greenlight Capital Inc., the $10 billion hedge-fund firm run by David Einhorn, told investors it’s increasing wagers against a group of technology stocks, in a letter that discussed the lack of profitability at online retailer Amazon.com Inc.

     “AMZN’s recent disappointment is notable in that for years, the story has been that AMZN isn’t profitable because it is growing so fast,” Greenlight said in a quarterly letter to clients today, referring to the stock ticker for Amazon.com. “Now growth is slowing, but rather than unleashing higher profits, the slower growth is leading to even greater losses.”

 

Have a wonderful evening everyone.

 

Be magnificent!

Ours is beyond, and still beyond, beyond the senses, beyond space,

and beyond time, away, away beyond,

till nothing of this world is left and the universe itself

becomes like a drop in the transcendent ocean of the glory of the soul.

 

Swami Vivekananda

As ever,

 

Carolann

 

The music is not in the notes, but in the silence between.

                    -Wolfgang Amadeus Mozart, 1756-1791

 

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

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:

In answer to the question, What Is the Point?  The Poet, John Burnside writes:

As any teenager can tell you, it’s a short step from asking the question: “What does it all mean?” to arriving at the inevitable answer: “Nothing.”  Meaning is constructed by each person after her own fashion, his own nature; there is no universal formula or divine plan – no “all” – that can make individual lives meaningful.  At first, such a realization can lead to dismay; befuddled by the schemes and promises of our elders and betters we had trotted dutifully to school and kirk and community discos full of the blithe enthusiasm youth is cursed with, in the sure expectation that a worthwhile life would just fall into place, with a modicum of effort, so long as we did the right things.  Maturity, love and marriage, job satisfaction, happiness – they were all out there, waiting to be achieved.  So we thought, until this perennial teenager’s question cropped up, and we began to doubt.

  Doubt is a good thing, most of the time.  As is the shedding of illusions, however painful the process.  For after dismay, after the insomniac nights and the hollow feeling in the pit of the mind, what follows (if our supposed betters can be persuaded to refrain from meddling) is the gradual understanding that, since meaning is neither fixed nor universal, it is determined, to a significant extent, by the power of the individual imagination.  True, there is a world out there that would compel us to conform, to consume, to render unto Caesar.  But we are, nevertheless, free to resist, free to imagine, free to furnish our lives, and the terrain we inhabit, with meanings that derive from our own nature, and from the nature of our home terrain.

  Henry Miller remarked that “life has to be given a meaning because of the obvious fact that it has no meaning.”  But he also said that “the aim of life is to live, and to live means to be aware, joyously, drunkenly, serenely, divinely aware.”  In a conformist society, the attainment of that joyous, drunken, serene awareness is both an act of resistance and a personal achievement, for it says to hell with Caesar and his tawdry coin, and leaves each of us to invest life with all the intangible and unaccountable forms of wealth that the imperial minions in their counting house can scarcely begin to imagine.

PHOTOS OF THE DAY

Dark clouds fill the Autumn sky over the jetty in Andernos, southwestern France. Regis Duvignau/Reuters

A person looks at the almost complete ceramic poppy art installation by artist Paul Cummins entitled ‘Blood Swept Lands and Seas of Red’ in the dry moat of the Tower of London in London, Sunday. The finished installation will be made up of 888,246 ceramic poppies, with the final poppy being placed on Armistice Day on November 11. Each poppy represents a British and Commonwealth military fatality from World War I. Thousands of visitors have come to see the installation over the last few days. Tim Ireland/AP

Market Closes for November 4^th, 2014    

Market Index	Close	Change
Dow Jones	17383.84	+17.60
		+0.10%
S&P 500	2011.91	-5.90   -0.29%
NASDAQ	4623.637	-15.270   -0.33%
TSX	14390.43	-147.19
		-1.01%

International Markets

Market Index	Close	Change
NIKKEI	16862.47	+448.71
		+2.73%
HANG SENG	23845.66	-70.31
		-0.29%
SENSEX	27860.38	-5.45
		-0.02%
FTSE 100	6453.97	-34.00
		-0.52%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.029	2.040
CND. 30 Year Bond	2.577	2.588
U.S.    10 Year Bond	2.3353	2.3425
U.S. 30 Year Bond	3.0486	3.0638

Currencies

BOC Close	Today	Previous
Canadian $	0.87669	0.88056
US $	1.14066	1.13564
Euro Rate 1 Euro=		Inverse
Canadian $	1.43126	0.69868
US $	1.25477	0.79696

Commodities

Gold	Close	Previous
London Gold Fix	1168.45	1166.56
Oil	Close	Previous
WTI Crude Future	77.19	78.78

Market Commentary:

Canada

By Eric Lam

     Nov. 4 (Bloomberg) — Canadian stocks fell for a second day, sending the benchmark index to a two-week low, as crude oil dropped to the lowest level in three years and Bank of Nova Scotia cut jobs amid writedowns in Latin America.

     Scotiabank, the third-largest lender by assets in Canada, dropped 2.3 percent as it eliminates 1,500 jobs and writes down its investment in Venezuela. Lightstream Resources Ltd. and Athabasca Oil Corp. retreated at least 6.1 percent as energy shares traded near the lowest level in a year. WestJet Airlines Ltd. lost 5.7 percent after third-quarter profit missed estimates. The Canadian dollar sank to a five-year low versus the U.S. currency.

     The Standard & Poor’s/TSX Composite Index fell 147.19 points, or 1 percent, to 14,390.43 at 4 p.m. in Toronto, the lowest since Oct. 22. The index gained 0.5 percent last week, paring its second straight monthly loss to 2.3 percent.

     “It appears Saudi Arabia’s meddling has rattled resolve,”  said Greg Eckel, a fund manager at Morgan Meighen & Associates Ltd. in Toronto. His firm manages about C$1.4 billion. “These have been very volatile times. Hopefully this isn’t the start of another long drop-off we have to climb out of with energy getting spooked.”

     Five of the 10 industries in the benchmark Canadian equity gauge retreated today on trading volume 13 percent above the 30- day average at this time of the day.

     The loonie, as the Canadian dollar is known for the image of the aquatic waterfowl on the C$1 coin, lost 0.4 percent to C$1.1408 per U.S. dollar after touching C$1.1427, the weakest since July 2009. One loonie buys 87.65 U.S. cents.

     Scotiabank declined 2.3 percent to C$67.19, the biggest decline in two months. The bank will take a C$451 million ($396 million) charge as it cuts about 1,500 jobs, writes down its investment in Venezuela and loans sour in the Caribbean.

     Two-thirds of the job losses will be in Canada, including some head-office positions. The charge, to be taken in the fourth quarter, will cut diluted earnings per share by 28 Canadian cents.                           

     Athabasca Oil tumbled 9.7 percent to C$3.16, a record, and Talisman Energy Inc. sank 9.5 percent to C$6.26 as the S&P/TSX Energy Index retreated 3.2 percent, the most in three weeks. Lightstream Resources lost 6.1 percent for an eighth straight day of losses, reaching an all-time low.

     Bellatrix Exploration dropped 8.5 percent to C$4.72, the biggest decline in two years, after reporting third-quarter earnings short of analysts’ estimates.

     Crude for December delivery fell 2 percent to $77.19 a barrel in New York. U.S. crude inventories climbed 1.9 million barrels last week to a four-month high, a Bloomberg News survey shows before government data tomorrow. Saudi Arabia yesterday cut prices for crude exports to U.S. customers while also raising prices in Asia and Europe, sparking a selloff.

     WestJet lost 5.7 percent to C$30.20, the most since May 2013. The Calgary-based airliner said net income dropped 20 percent in the quarter as the Canadian dollar fell, spending rose on new capacity and maintaining planes and an aircraft disposal resulted in a one-time charge.

US

By Joseph Ciolli

     Nov. 4 (Bloomberg) — Most U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from near a record, as energy companies slumped after oil reached a three-year low and forecasts from Sprint Corp. to Priceline Group Inc. disappointed investors.

     Exxon Mobil Corp. and Chevron Corp. paced losses in energy shares as oil sank to as low as $75.84 a barrel in New York. Sprint tumbled 16 percent as the wireless carrier lost subscribers for an 11th straight quarter. Priceline slid 8.4 percent on a weaker-than-projected sales forecast.

     The Standard & Poor’s 500 Index fell 0.3 percent to 2,012.10 at 4 p.m. in New York as investors also await election results to see if Republicans wrest control of the Senate. The Dow Jones Industrial Average rose 17.6 points, or 0.1 percent, to 17,383.84 as Procter & Gamble Co. and Wal-Mart Stores Inc. led gains. About 7 billion listed shares changed hands in the U.S., 9.5 percent higher than the three-month daily average.

     “Look at the price of oil way down — that tells you everything you need to know,” Michael James, a Los Angeles- based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “There might be some important things that come out of the election, but none of them will be bigger than the momentum from earnings and the impact that the price of oil will have on market sentiment.”

     The S&P 500 rebounded 8.3 percent from a six-month low on Oct. 15 through yesterday, fueled by better-than-forecast economic data and improving earnings reports. The gain has pushed the index to trade at 16.7 times the members’ projected profit, near its highest multiple since 2009. Both the S&P 500 and the Dow closed at all-time highs last week amid optimism the Bank of Japan’s stimulus will fill some of the gap left by the end of Federal Reserve bond buying.

     Republicans are poised to make gains in U.S. elections today, though several races remain tight and it’s too close to call yet whether the party will capture enough seats to seize control of the Senate. In the House, Republicans appeared likely to expand their majority. The Senate is the question, with Republicans looking to pick up a net gain of six seats.

     A Commerce Department report showed factory orders slipped 0.6 percent in September, matching economists’ forecasts. Other data today showed the trade deficit in the U.S. widened in September as exports cooled from a record, highlighting how weakening global growth will affect the American economy. The gap grew by 7.6 percent to $43 billion, the largest since May.

     Concern over the global economy intensified as the European Commission cut its growth forecast for the euro area and said inflation will be even weaker than the European Central Bank predicts. The ECB meets Nov. 6 to deliberate on monetary policy amid increasing the pressure for the central bank to consider additional stimulus.

     Paul Singer’s Elliott Management Corp. said optimism on U.S. growth is misguided as economic data understate inflation and overstate growth, and central bank policies of the past six years aren’t sustainable.

     The market turmoil in the first half of October may be a “coming attractions” for the next real crash that could turn into a “deep financial crisis” if investors lose confidence in the effectiveness of monetary stimulus, Elliott wrote in a third-quarter letter to investors, a copy of which was obtained by Bloomberg News.

     Fed Bank of St. Louis President James Bullard said a drop in oil is bullish for the economy. He said in an interview on Fox Business Network that he’s looking for a fairly robust economy in the fourth quarter.

     About three stocks declined for every two that rose in the U.S. The Russell 2000 Index of smaller companies lost 0.4 percent. Energy shares sank 1.9 percent for the biggest drop among the 10 main industries in the S&P 500.

     Exxon Mobil slid 0.8 percent and Chevron fell 1.2 percent as 38 of 43 energy companies in the S&P 500 retreated. West Texas Intermediate crude slid for a fourth straight day as Saudi Arabia cut prices for oil exports to U.S. customers amid speculation that stockpiles increased. WTI has lost 28 percent from this year’s high in June. Brent crude touched a four-year low today.

     Investors are also watching earnings for further clues to the health of the U.S. economy. Prudential Financial Inc., 21st Century Fox Inc., and Walt Disney Co. are among more than 80 S&P 500 companies posting financial results this week.

     Of the S&P 500 companies that have reported results so far for the third quarter, 81 percent have exceeded profit projections, while 61 percent posted better-than-forecast sales.

     Sprint plunged 16 percent. Efforts to lure subscribers with price reductions have taken a toll on industry profits, and Sprint lowered its forecast for earnings for this year, citing the ongoing loss of customers. The wireless carrier also is eliminating about 6.5 percent of its 31,000 employees, a month after announcing an earlier round of job cuts.

     Priceline slipped 8.4 percent after forecasting fourth- quarter revenue less than analysts’ estimates as customers cut back on travel plans and a stronger dollar curbs growth. Third- quarter revenue climbed 25 percent, topping analysts’ average projection.

     Herbalife Ltd. tumbled 21 percent. The nutrition company cut its earnings forecast for the year and said sales are suffering following a change in some policies for its distributors in response to criticism by hedge-fund manager Bill Ackman.                          

     Johnson & Johnson, Hewlett-Packard Co. and Cisco Systems Inc. gained after Jefferies & Co. published a report naming them as companies that could benefit from tax reform. The companies may see a lower headline tax rate, fewer deductions and an improved ability to repatriate overseas cash at a lower tax rate, the report said.

     The Bloomberg U.S. Airlines Index rose 2.8 percent to its highest level since 2001 as the slump in crude oil boosted their earnings prospects. Delta Air Lines climbed 4.2 percent, while United Continental Holdings Inc. and American Airlines Group Inc. gained more than 1.6 percent.

     Michael Kors Holdings Ltd. shares fell 8.4 percent after same-store sales missed estimates, raising concern that one of fashion’s biggest growth stories is losing momentum.

     L Brands Inc. climbed 2.5 percent. The owner of the Victoria’s Secret lingerie brand raised its third-quarter earnings forecast. Office Depot Inc. surged 25 percent after boosting its forecast for the year.

 

Have a wonderful evening everyone.

 

Be magnificent!

The key to cosmic awareness, to a consciousness of God,

is in the understanding of the soul.

Rabindranath Tagore

As ever,

 

Carolann

 

Learning never exhausts the mind.

     -Leonardo da Vinci, 1452-1519

 

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

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:

November, from the  Latin novem,  meaning  nine.  It was the ninth month in the ancient Roman calendar, when the year began in March.
No sun – no moon.
No morn – no noon –
No dawn – no dusk – no proper time of day.
No warmth, no cheerfulness, no healthful ease,
No comfortable feel in any member –
No shade, no shine, no butterflies, no bees,
No fruits, no flowers, no leaves, no birds –
November!

                -Thomas Hood, 1844.

I finished reading Longbourn by Jo Baker last night and I highly recommend it.  Baker tells the servants’ story of the family from Jane Austen’s Pride & Prejudice.  It really is a very good read.

PHOTOS OF THE DAY

The late Earl of Pueckler-Muskau Hermann’s grave ‘Tumulus’ is seen against autumn colors in Branitz park in Cottbus, Germany. The Earl was buried in 1871. Hannibal/Reuters

Daredevil Nik Wallenda performs his blindfolded walk along a tightrope between two skyscrapers suspended 500 feet above the Chicago River in Chicago Sunday night. Jim Young/Reuters

Market Closes for November 3^rd, 2014    

Market Index	Close	Change
Dow Jones	17366.24	-24.28
		-0.14%
S&P 500	2017.37	-0.68   -0.03%
NASDAQ	4638.906	+8.165   +0.18%
TSX	14531.40	-81.92
		-0.56%

International Markets

Market Index	Close	Change
NIKKEI	16413.76	+755.56
		+4.83%
HANG SENG	23915.97	-82.09
		-0.34%
SENSEX	27860.38	-5.45
		-0.02%
FTSE 100	6487.97	-58.50
		-0.89%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.040	2.047
CND. 30 Year Bond	2.588	2.589
U.S.    10 Year Bond	2.3425	2.3281
U.S. 30 Year Bond	3.0638	3.0582

Currencies

BOC Close	Today	Previous
Canadian $	0.88056	0.88762
US $	1.13564	1.12661
Euro Rate 1 Euro=		Inverse
Canadian $	1.41785	0.70529
US $	1.24850	0.80096

Commodities

Gold	Close	Previous
London Gold Fix	1166.56	1171.96
Oil	Close	Previous
WTI Crude Future	78.78	80.54

Market Commentary:

Canada:

By Eric Lam

     Nov. 3 (Bloomberg) — Canadian stocks fell, erasing an earlier gain, as crude oil dropped to the lowest level in more than two years after Saudi Arabia lowered the cost of its oil to U.S. customers.

     Lightstream Resources Ltd. plunged for a seventh straight day. Athabasca Oil Corp. and Suncor Energy Inc. sank at least3.6 percent as energy shares led the Standard & Poor’s/TSX Composite Index lower. Torex Gold Resources Inc. jumped 12 percent after making the first loan drawdown in connection with its gold project in Mexico.

     The S&P/TSX fell 75.70 points, or 0.5 percent, to 14,537.62 at 4 p.m. in Toronto. The index gained 0.5 percent last week, paring its second straight monthly loss to 2.3 percent.

     Five of the 10 industries in the benchmark Canadian equity gauge retreated today on trading volume 15 percent lower than the 30-day average.

     China’s Purchasing Managers’ Index slowed to 50.8 in October, trailing the 51.2 median estimate of analysts in a Bloomberg News survey and compared with September’s 51.1. A property slump and slowdown in investment growth has put the world’s second-largest economy on course for the slowest full- year growth since 1990. Readings above 50 indicate expansion.

     Athabasca Oil fell 4.1 percent to C$3.50 and Suncor Energy sank 3.6 percent to C$38.57, the biggest drop since April 2013. Crude in New York tumbled 2.2 percent to close at $78.78 a barrel, the lowest since June 2012. Saudi Arabian Oil Co. cut prices for all grades to the U.S. in the face of soaring North American output.

     Lightstream Resources lost 7.1 percent to C$2.77, a record low. The stock has plunged 27 percent in seven days. The company last week reported third-quarter profit slumped to C$6.9 million from C$52 million a year ago.

     Torex Gold climbed 12 percent to C$1.34 after drawing $45 million from a $375 million loan facility to pay for development at its El Limon-Guajes project in Mexico. The company will receive further advances on a monthly basis.

US

By Joseph Ciolli

     Nov. 3 (Bloomberg) — Most U.S. stocks fell, following a monthly advance that sent benchmark indexes to records, as energy companies dropped with the price of oil after Saudi Arabia cut the cost of crude sent to American customers.

     The Standard & Poor’s 500 Index slipped less than 0.1 percent to 2,017.81 at 4 p.m. in New York as about five U.S. stocks fell for every four that rose. The Dow Jones Industrial Average lost 24.28 points, or 0.1 percent, to 17,366.24. The Nasdaq Composite Index rose 0.2 percent to the highest level since March 2000. Almost 7 billion listed shares changed hands in the U.S., 9 percent higher than the three-month daily average.

     “The market was trading in a range before oil went south on Saudi Arabia’s announcement that it’ll temper U.S. prices,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said in a phone interview. “The market made a quick reversal back to elevated levels, so that’s always a concern, and perhaps you’re seeing a bit of profit taking and resistance to start the week.”

     The S&P 500 has rebounded 8.3 percent from a six-month low on Oct. 15, fueled by better-than-forecast economic growth and improving earnings reports. The gain has pushed the index to trade at 16.8 times the members’ projected profit, near its highest multiple since 2009.

     Both the S&P 500 and the Dow closed at all-time highs last week amid optimism the Bank of Japan’s stimulus will fill some of the gap left by the end of Federal Reserve bond buying.

     Manufacturing data today added to evidence that the world’s largest economy can sustain a withdrawal in central-bank stimulus. The Institute for Supply Management’s factory index increased to 59 in October, matching August as the highest since March 2011, after 56.6 the prior month. Readings above 50 indicate expansion. A gauge of production was the strongest in a decade.

     A slowdown in Chinese manufacturing highlighted diverging growth outlooks for America, Asia and Europe. The Chinese government’s Purchasing Managers’ Index released over the weekend was at 50.8 in October, trailing the 51.2 median estimate of analysts in a Bloomberg News survey and compared with September’s 51.1. Readings above 50 indicate expansion.

     Other U.S. releases this week will probably show services industries grew last month, while the unemployment rate remained at a six-year low.

     Earnings reports may provide further clues to the health of the U.S. economy. American International Group Inc., Time Warner Inc., and Walt Disney Co. are among more than eighty S&P 500 companies posting financial results this week. Analysts predict profit for members of the gauge rose 8 percent in the third quarter, higher than the 4.9 percent growth projected a month ago. Sales probably increased 3.6 percent in the three-month period, the estimates show.

     Seven out of 10 major industries in the S&P 500 rose, with technology and consumer-staples companies leading gains.

     Energy shares in the S&P 500 decreased 1.7 percent as a group, reversing an earlier gain of 0.8 percent. Exxon Mobil Corp., Chevron Corp. and Schlumberger Ltd. lost at least 1.5 percent to pace declines in 38 of the 43 stocks.

     West Texas Intermediate oil dropped to the lowest level in more than two years after Saudi Arabia reduced the cost of its crude to U.S. customers in the face of soaring North American output. Futures tumbled 2.2 percent to close at $78.78 a barrel in New York. Saudi Arabian Oil Co. cut prices for all grades to the U.S., the company said today in an e-mailed statement.

     Apple Inc. climbed 1.3 percent to $109.40. The company is holding calls with investors today to discuss a bond sale, according to a person familiar with the matter.

     The world’s most valuable technology company hired Goldman Sachs Group Inc. and Deutsche Bank AG to organize the calls, said the person, who asked not to be identified because they’re not authorized to speak about it. A London-based spokesman for Apple declined to comment on whether the securities would be denominated in euros.

     Sapient Corp. jumped 42 percent to $24.60. Publicis Groupe SA, a French advertising company, agreed to pay $3.7 billion for Boston-based Sapient, which owns digital advertising agency SapientNitro. Sapient shareholders will get $25 in cash for each share they own.

     Covance Inc., a provider of contract research services for drug companies, surged 26 percent to $100.57. Laboratory Corp. of America Holdings will buy the company for about $6.1 billion, or cash and stock valued at $105.12 a share, according to a statement today.
 

Have a wonderful evening everyone.

 

Be magnificent!

Your reactions  are shared by all humanity.

Your brain is not yours,

it has evolved through centuries of time.

So we are questioning deeply whether there is an

individual at all.  We are the whole of humanity, we are the rest of mankind.

Krishnamurti

As ever,

 

Carolann

 

A fanatic is one who can’t change his mind and won’t change the subject.

                                                         –Winston Churchill, 1874-1965

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7