Month: December 2014

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY
Fishermen unload their catch in the port of Sabang in Pulah Weh, Indonesia. ‘The fishermen often unload their catch before dawn. It’s a messy, chaotic flurry of activity that smells strongly of fish and is a blast to watch.’ Ann Hermes

 Iranian laugh instructor Mahro Sameni (wearing red scarf) leads a laughing class in Tehran, Iran. More than 250 Iranian instructors have been trained in ‘laughing yoga’ in the past decade, and work privately and in venues such as state banks, health clinics, and addiction centers to ease the modern stresses of urban living.  Scott Peterson

Market Closes for December 29th, 2014     

Market Index	Close	Change
Dow Jones	18038.23	-15.48
		-0.09%
S&P 500	2090.57	+1.80   +0.09%
NASDAQ	4806.910	+0.051
		—
TSX	14663.92	+54.67
		+0.37%

International Markets

Market Index	Close	Change
NIKKEI	17729.84	-89.12
		-0.50%
HANG SENG	23773.18	+423.84
		+1.82%
SENSEX	27395.73	+153.95
		+0.57%
FTSE 100	6633.51	+23.58
		+0.36%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.834	1.898
CND. 30 Year Bond	2.382	2.422
U.S.    10 Year Bond	2.2021	2.2605
U.S. 30 Year Bond	2.7728	2.8524

Currencies

BOC Close	Today	Previous
Canadian $	0.85871	0.86062
US $	1.16454	1.16195
Euro Rate 1 Euro=		Inverse
Canadian $	1.41561	0.70641
US $	1.21564	0.82262

Commodities

Gold	Close	Previous
London Gold Fix	1185.50	1175.75
Oil	Close	Previous
WTI Crude Future	53.61	56.90

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for a third day, extending a three-week high, as banks posted the longest winning streak in more than a year while energy producers pared gains as crude slumped to a five-year low.

     Bank of Nova Scotia and Canadian Western Bank climbed at least 1 percent to pace gains among financial stocks. TransCanada Corp. rose 1.4 percent after buying a solar power plant from Canadian Solar Inc. for C$60 million ($51.6 million).  Bombardier Inc. gained 1.5 percent after winning an order to sell 42 double-deck trains to France for about $484 million.  BlackBerry Ltd. added 2.1 percent to C$12.67, a six-week high.

     The Standard & Poor’s/TSX Composite Index rose 54.67 points, or 0.4 percent, to 14,663.92 at 4 p.m. in Toronto. The index has gained 7.7 percent for the year, on pace for a third straight annual advance, the longest streak since 2007.

     Canadian Western Bank added 1.3 percent to C$33.21 and Bank of Nova Scotia rallied 1 percent to C$66.96. Nine of 10 industries increased in the S&P/TSX on trading volume that was 50 percent lower than the 30-day average today.

     The S&P/TSX Banks Index increased 0.7 percent for a ninth straight day of gains, the longest streak since October 2013. Toronto-Dominion Bank, the nation’s largest lender, added 0.6 percent to C$55.70.

     Bellatrix Exploration Ltd. rose 3.9 percent to C$4.25 as energy stocks increased 0.3 percent, paring an earlier gain of as much as 1.6 percent. West Texas Intermediate crude sank 2.1 percent in New York to the lowest level in more than five years, erasing an advance spurred by an escalating conflict in Libya.

     Financials, raw-materials and energy stocks are the three biggest laggards in Canada for the first time since at least 1988, fueling concerns about the nation’s economic recovery as crude prices plunged into a bear market this year, gold fluctuated and bank earnings slowed.

     The three groups, which account for about two-thirds of the S&P/TSX, are the worst performers among 10 groups, led by a 7.4 percent drop in energy shares.

     Greek Prime Minister Antonis Samaras failed in a third and final attempt to get his presidential candidate, Stavros Dimas, confirmed. The vote will trigger a general election in late January or early February, a few weeks before the nation’s 240- billion-euro ($293 billion) bailout expires.

US

By Joseph Ciolli and Inyoung Hwang

     (Bloomberg) — The Standard & Poor’s 500 Index rose, approaching a third straight yearly advance and extending gains after equity gauges climbed past milestones last week.

     Gilead Sciences Inc. increased 3.7 percent as biotechnology shares rebounded for a third day. Energy companies rose despite a drop in crude prices. Losses in Microsoft Corp., Intel Corp. and International Business Machines Corp. weighed down the Dow Jones Industrial Average.

     The S&P 500 rose 0.1 percent to 2,090.57 at 4 p.m. in New York. The Dow fell 15.48 points, or 0.1 percent, to 18,038.23.  The Russell 2000 Index gained 0.3 percent. More than 4.7 billion shares changed hands on U.S. exchanges, 32 percent below the three-month average. Volume for U.S. exchanges on Dec. 26 was the lowest this year for a full day of trading.

     Equities are approaching the end of the year at record levels, bolstered by the fastest expansion for the American economy in more than a decade. The Federal Reserve’s pledge on Dec. 17 to be patient in raising interest rates helped the S&P 500 fully recoup a 5 percent loss in the first half of the month.

    “There’s lots for investors to digest going into 2015,”said James Buckley, who helps oversee about $47 billion as a portfolio manager at Baring Asset Management Ltd. in London. “The focus will likely be on more macro-type events immediately. The U.S. economy is the one real bright spot. That economy is doing phenomenally well. That in itself is reason to be optimistic.”

     The S&P 500 has gained 13 percent this year, while the Dow is up 8.8 percent in 2014 after climbing above 18,000 for the first time last week. The Russell 2000 of small-cap stocks climbed to an all-time high on Dec. 26. The Nasdaq Composite Index reached its highest since March 2000 that same day, closing about 5 percent below its record.

     U.S. stocks have overcome upheavals in 2014 that threatened to derail a bull market in its sixth year, ranging from violence in the Ukraine to an Ebola outbreak and a bear market in oil prices. The S&P 500’s worst retreat was only 7.4 percent, and the gauge recovered from each of its declines of 4 percent or more within one month.

     The S&P 500 has not seen a four-day decline since December 2013. The benchmark gauge has declined for four consecutive trading sessions at least once every year since at least 2000.

     The Chicago Board Options Exchange Volatility Index, a measure of demand for options on the S&P 500, dropped 12 percent last week. It gained 3.9 percent to 15.06 today. The gauge, also known as the VIX, has tumbled 36 percent from a two-month high on Dec. 16.

     The S&P 500 trades at 18.5 times profits, the highest level since 2010 and compares with the average of 16.3 over the past decade.

     Analysts forecast earnings for the S&P 500 to increase 6.4 percent next year. Consumer-discretionary, technology and raw- materials companies are expected to post the fastest growth, with profits rising at least 13 percent, estimates compiled by Bloomberg show.

     Stock futures slumped earlier today after Greek Prime Minister Antonis Samaras failed in his third and final attempt to persuade parliament to back his candidate for head of state. Concern that anti-austerity party Syriza will win snap elections next month roiled stocks in Athens, as such an outcome risks the European Union’s common currency and the start of the European Central Bank’s bond-buying plan.

     “We’re seeing if people will try to add to performance before the year is over,” Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview. “There might be some trading around the edges by people looking for a little more performance. It’s more of a stock-picker way of looking at it at this point.”

     Economic reports this week may show consumer confidence climbed in December, pending home sales rose in November, while an Institute for Supply Management index of manufacturing slipped this month, according to economists surveyed by Bloomberg.

     Six out of 10 major group in the S&P 500 increased today. Utilities and consumer-discretionary companies gained the most, while technology and phone shares had the worst performance.

     Gilead Sciences Inc. rose 3.7 percent as biotechnology shares gained for a third day after the biggest two-day drop since February 2012.

     Biotech shares slumped last week amid concern health insurers and companies that manage patient’s drug benefits will put new pressure on how much the industry can charge for breakthrough treatments. The selloff was prompted by Express Scripts Holding Co.’s announcement that it would block its U.S. patients from getting Gilead’s $1,100-a-pill hepatitis C medicine.

     Energy shares rose 0.3 percent, even as oil erased an early rally. Crude reached a five-year low on speculation that a global supply glut that’s driven crude into a bear market will continue through the first half of 2015.

     IBM, Intel, Microsoft and Red Hat Inc. lost more than 0.9 percent. While Red Hat, Intel and Microsoft have rallied at least 25 percent this year, IBM is down 14 percent for 2014, heading for the worst performance in the Dow for a second straight year.

Have a wonderful evening everyone!

Be magnificent!

 

“ True happiness… is not attained through self-gratification, but through fidelity to a worthy purpose”.   Helen Keller

As ever,
 
Leyla
 

“Imagine all the people living life in peace. You may say I’m a dreamer, but I’m not the only one. I hope someday you’ll join us, and the world will be as one”. John Lennon
 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY
 

Wishing everyone a very Merry Christmas and a very joyous holiday season!!

Market Closes for December 23^rd, 2014     

Market Index	Close	Change
Dow Jones	18024.17	+64.73
		+0.36%
S&P 500	2082.17	+3.63   +0.17%
NASDAQ	4765.426	-15.998   -0.33%
TSX	14594.03	+161.65
		+1.12%

International Markets

Market Index	Close	Change
NIKKEI	17635.14	+13.74
		+0.08%
HANG SENG	23333.69	-74.88
		-0.32%
SENSEX	27506.46	-195.33
		-0.71%
FTSE 100	6598.18	+21.44
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.898	1.792
CND. 30 Year Bond	2.422	2.329
U.S.    10 Year Bond	2.2605	2.1583
U.S. 30 Year Bond	2.8524	2.7430

Currencies

BOC Close	Today	Previous
Canadian $	0.86062	0.85928
US $	1.16195	1.16376
Euro Rate 1 Euro=		Inverse
Canadian $	1.41440	0.70701
US $	1.21726	0.82151

Commodities

Gold	Close	Previous
London Gold Fix	1175.75	1195.25
Oil	Close	Previous
WTI Crude Future	56.90	54.96

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose to a three-week high as energy shares rallied on higher oil prices and data showed the U.S. and Canadian economies grew faster than forecast last quarter.

     Pacific Rubiales Energy Corp. jumped 6.1 percent after a well test found offshore oil. Veresen Inc. gained 15 percent, its biggest-ever advance, after agreeing to a joint venture with KKR & Co. to expand pipeline and natural gas infrastructure in British Columbia. MEG Energy Corp. rose 5 percent as crude advanced in New York. Teck Resources Ltd., the nation’s largest diversified miner, jumped 4.2 percent.

     The Standard & Poor’s/TSX Composite Index rose 161.65 points, or 1.1 percent, to 14,594.03 at 4 p.m. in Toronto, the highest close since Dec. 3. The index has gained 7.1 percent for the year, on pace for a third straight annual advance, the longest streak since 2007.

     Nine of the 10 main industries in the S&P/TSX advanced on trading 35 percent lower than the 30-day average today.

     Manulife Financial Corp. climbed 1.2 percent to C$22.41, a two-week high, after agreeing to buy New York Life Insurance Co.’s retirement plan services business in a deal that will boost the insurer’s assets under administration by about $50 billion. Terms of the deal were not disclosed.

     Energy shares in the index climbed 2.2 percent to the highest since Dec. 3. West Texas Intermediate oil advanced 3.4 percent in New York while London Brent climbed 2.3 percent.

     U.S. gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003, as consumers and businesses spent more than previously estimated.

     Canada’s economy rose 0.3 percent in October on gains in the public sector and commodity production, ahead of economists’ estimates. The highest forecast was 0.2 percent.

     The S&P/TSX surged 5.4 percent last week, the most since July 2009, as equities worldwide climbed as oil prices stabilized and Federal Reserve Chair Janet Yellen said the U.S. central bank will probably hold rates near zero at least through the first quarter.

US

By Joseph Ciolli and Callie Bost

     (Bloomberg) — The Dow Jones Industrial Average rose above 18,000 for the first time as faster-than-forecast growth in gross domestic product boosted confidence in the economy and overshadowed declines in health-care companies.

     The Dow average added 64.73 points, or 0.4 percent, to a record 18,024.17 at 4 p.m. in New York. The Standard & Poor’s 500 Index rose 0.2 percent to 2,082.17, also reaching an all- time high. Both gauges have advanced five straight days. The Nasdaq Biotechnology Index slipped 4.6 percent for the biggest decline since April.

     “The market was roaring yesterday, and going into the end of the year it keeps pushing higher,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said in a phone interview. “The Fed is part of the fueling of everything, and you have to couple that with the year-end push.”

     It’s been 172 days since the Dow closed above 17,000 on July 3, data compiled by Bloomberg show. That’s the fifth- fastest trip between thousands, with the record being 35 days to 11,000 in May 1999. It took the index almost 5,200 days to go from 1,000 to 2,000 between 1972 and 1987, according to Howard Silverblatt, an index analyst at the New York-based S&P Dow Jones Indices.

     The Dow closed at an eight-month low on Oct. 16 before rallying more than 1,882 points, or 12 percent, to to top 18,000.

     The gauge has risen 175 percent during the five-year bull market that began in March 2009, propelled by better-than- estimated corporate results and three rounds of Fed bond purchases. The S&P 500 has more than tripled in that time.

     Technology companies have had some of the biggest gains in the Dow this year, with Intel Corp. rising more than 44 percent and Microsoft Corp. jumping 29 percent. Consumer companies such as Home Depot Inc., Walt Disney Co. and Nike Inc. have also risen at least 22 percent to lead the 30-stock gauge’s advance.

     Nike, UnitedHealth Group Inc., Visa Inc., Home Depot and Intel have paced gains during the gauge’s run to 18,000 in the second half of the year, with each rallying more than 20 percent from July 3. Caterpillar Inc., International Business Machines Corp. and Chevron Corp. have been the worst performers, with slumps of more than 14 percent in that period.

     The industrial gauge has climbed 8.7 percent this year, almost three times more than the Russell 2000 Index of small-cap companies.

     “I think it’s a testament to where the economy is,” John Canally, a Boston-based economic strategist at LPL Financial Corp., which oversees $464.8 billion, said in a phone interview. “The underlying trend in the economy is still there, we’re still in the middle of the business cycle  and earnings look solid. That’s adding up to a lot of people saying ‘hey, I’m missing this, I better get involved in the stock market.’”

     Equity benchmarks have rallied to records, with the S&P 500 rebounding 12 percent from a low in October, amid speculation the U.S. economy is strong enough to withstand a slowdown overseas.

     Data today showed the world’s largest economy expanded at the fastest pace in more than a decade, as U.S. consumers and businesses spent more than previously estimated.

     Gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003, and up from a previously estimated 3.9 percent, revised figures from the Commerce Department showed today in Washington. The median forecast of 75 economists surveyed by Bloomberg projected a 4.3 percent increase.

     Consumer spending rose more than forecast in November as incomes increased and gasoline prices dropped, indicating the biggest part of the U.S. economy is strengthening as the year ends.

     Stocks started to rally last week, with the S&P soaring the most in four days since 2011, after the Fed said it will be patient on the timing of a rate increase even as U.S. growth shows signs of accelerating. Chair Janet Yellen said any spillover from the situation in Russia is likely to be small, while the central bank’s policy statement didn’t mention turmoil sparked by tumbling oil prices.

     The S&P 500 is now up 0.7 percent for December and 13 percent this year.

     “Part of the rebound we’re now witnessing has to do with the realization that the selloff was overdone,” said David Wartenweiler, chief investment officer at Habib Bank AG in Zurich. “The U.S. economy is really on track to continue to grow at a healthy pace. It’s also important that the Fed said they’re going to increase interest rates but be patient.”

     The Chicago Board Options Exchange Volatility Index fell 3 percent to 14.8. The gauge known as the VIX has dropped five straight days, its longest streak in a month.

     Nine out of 10 industries in the S&P 500 rose today, with health-care companies posting the only losses as a group, tumbling 2.2 percent.

     The Nasdaq Biotechnology Index fell for a second day, with losses beginning after a drug-benefit manager blocked Gilead Sciences Inc.’s $1,000 hepatitis treatment.

     Gilead dropped 3.7 percent today, after tumbling 14 percent yesterday. Biogen Idec Inc. lost 4.7 percent and Celgene Corp. slipped 6.5 percent.

     Health companies accounted for the biggest losses in the Dow as Johnson & Johnson, Pfizer Inc. and Merck & Co. fell more than 2 percent.

     “Health-care is definitely underperforming today, specifically in biotechnology names,” Joe Bell, a Cincinnati- based senior equity analyst at Schaeffer’s Investment Research Inc., said by phone. “Gilead is really dragging down the biotechnology sector.”

 

Have a wonderful evening everyone!

 

Be magnificent!

 

”Christmas is the spirit of giving without a thought of getting. It is happiness because we see joy in people. It is forgetting self and finding time for others. It is discarding the meaningless and stressing the true values.”Thomas S. Monson

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Harry Winston, a Persian, is groomed by his owner before competing in a cat show in Dover, N.H. The show, put on by New Hampshire Feline Fanciers, had 118 entries of which 106 were pedigree and 12 were household pets. Melanie Stetson Freeman

Women over age 58 compete in the 36th and final Ms. Senior Sweetheart Pageant of America in Fall River, Mass. Ida White, 79, from Florida, sits on her throne surrounded by the runners-up after being crowned the 2014 winner. ‘One of my favorite assignments of the year. The ladies were full of energy and spunk.’ Melanie Stetson Freeman

Market Closes for December 22^nd, 2014     

Market Index	Close	Change
Dow Jones	17959.44	+154.64
		+0.87%
S&P 500	2078.54	+7.89   +0.38%
NASDAQ	4781.424	+16.044   +0.34%
TSX	14432.38	-35.88
		-0.25%

International Markets

Market Index	Close	Change
NIKKEI	17635.14	+13.74
		+0.08%
HANG SENG	23408.57	+291.94
		+1.26%
SENSEX	27701.79	+329.95
		+1.21%
FTSE 100	6576.74	+31.47
		+0.48%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.792	1.810
CND. 30 Year Bond	2.329	2.335
U.S.    10 Year Bond	2.1583	2.1618
U.S. 30 Year Bond	2.7430	2.7542

Currencies

BOC Close	Today	Previous
Canadian $	0.85928	0.86170
US $	1.16376	1.16050
Euro Rate 1 Euro=		Inverse
Canadian $	1.42302	0.70273
US $	1.22278	0.81781

Commodities

Gold	Close	Previous
London Gold Fix	1195.25	1196.35
Oil	Close	Previous
WTI Crude Future	54.96	56.52

Market Commentary:

Canada

By Callie Bost

     (Bloomberg) — Canadian stocks declined, after posting the best week in five years, as commodity producers tumbled with the price of crude and metals.

     Legacy Oil + Gas Inc. and Crew Energy Inc. plunged at least 10 percent to pace losses in energy companies. Primero Mining Corp. slumped 14 percent to lead a 3.1 percent tumble among raw- materials producers. BlackBerry Ltd. jumped 7.6 percent after TD Securities analysts upgraded the stock.

     The Standard & Poor’s/TSX Composite Index fell 35.88 points, or 0.3 percent, to 14,432.38 at 4 p.m. in Toronto. Trading in the benchmark gauge’s stocks was 16 percent below the 30-day average. The index has lost 2.1 percent in December, paring its gains for the year to 6 percent.

     The S&P/TSX surged 5.4 percent last week, the most since July 2009, as equities worldwide climbed as oil prices stabilized and Fed Chair Janet Yellen said the U.S. central bank will probably hold rates near zero at least through the first quarter.

     Crude prices resumed a selloff today, extending a four-week slide on concern OPEC’s refusal to cut production will worsen a global glut. Gold fell the most in more than two weeks, while silver sank 2.6 percent and copper retreated.

     Four of the 10 main industries in the S&P/TSX declined today. Materials shares sank more than 3 percent as gold miners plunged 5.4 percent. Health-care companies jumped 1.3 percent as Valeant Pharmaceuticals International Inc. climbed 1.4 percent to a record C$167.77.

     Energy stocks in the benchmark index dropped 1 percent, halting a four-day rally. The group recorded its best gain in five years last week as oil advanced three out of the five days.

     Legacy Oil plunged 13 percent to C$2.18 and Crew Energy slid 10 percent to C$6.10.

     BlackBerry jumped 7.6 percent to C$12.43. TD Securities analyst Scott Penner increased his rating on the shares to a buy rating from a hold rating, with a price target of C$13.

     BlackBerry’s uptake of new software services is likely to drive earnings power, Penner wrote in a note today. The company’s third-quarter revenue miss was largely in device business, which is less relevant to earnings going forward, he wrote.

US

By Jeremy Herron and Joseph Ciolli

     (Bloomberg) — U.S. stocks extended their climb, with benchmark indexes rising to records as gains in technology shares offset losses among drugmakers. Energy producers resumed a selloff as crude sank with gold, while the ruble strengthened.

     The Standard & Poor’s 500 Index added 0.4 percent to an all-time high of 2,078.54 by 4 p.m. in New York, while gains in Intel Corp. and International Business Machines Corp. led the Dow Jones Industrial Average up 0.9 percent, also to a record. Oil traded in the U.S. and London slipped at least 2 percent, halting a four-day rally in S&P 500 energy stocks. Natural gas futures fell to a two-year low. Gold futures declined the most in more than two weeks. The ruble climbed on speculation exporters are selling foreign currency amid government pressure.

     Equities globally have been climbing since the Federal Reserve indicated last week that it will probably hold interest rates near zero at least through the first quarter, even as the U.S. economy shows signs of strength. An update on third-quarter gross domestic product is due tomorrow. Chinese ministers offered support for Russia, expanding a currency swap between the two nations as President Vladimir Putin seeks to shore up the ruble without depleting foreign-exchange reserves.

     “Once the trend got turned last week, given the time of the year, it became a perfect storm to the upside,” Walter Todd, who oversees about $1 billion as chief investment officer for Greenwood, South Carolina-based Greenwood Capital Associates LLC, said by phone. “Absent something from left field overseas or anything else unforeseen, stocks will continue to move higher and maybe approach that 2,100 level on the S&P by the end of the year.”

     The S&P 500 completed its fifth recovery this year from a decline of 4 percent or more, just 17 days after it started, data compiled by Bloomberg show. In comparable drops beginning in January, April, July and September, the S&P 500 needed about a month to erase losses, the data show.

     A slide in oil prices and the worsening financial crisis in Russia rippled through markets earlier this month, wiping more than $1 trillion off U.S. equity values in less than two weeks. The S&P 500 lost 5 percent in seven trading days through Dec. 16.

     After rising Dec. 19, oil resumed its retreat today, with West Texas Intermediate crude for February delivery dropped 3.3 percent to $55.26 a barrel in New York, extending its slide this year to 44 percent. Brent crude for February settlement slipped 2.1 percent to $60.11 per barrel in London, after jumping 3.6 percent Dec. 19, its steepest one-day gain in two years.

     Saudi Arabia reaffirmed its resolve to maintain output at current levels at a conference at the weekend, fueling concern over a global supply glut in oil. Energy shares in the S&P 500 fell 1 percent, after rallying 9.7 percent last week.

     Eight of the S&P 500’s 10 main industry groups advanced today, with technology shares rising 1.1 percent and telephone stocks up 1 percent. Intel and IBM gained at least 1.8 percent, while Apple Inc. added 1 percent. The Nasdaq 100 Index rose 0.3 percent, while the Russell 200 Index of small-cap stocks added 0.5 percent to close at its highest level since July 3.

     Gilead Sciences Inc. sank 14 percent after its hepatitis C drug was blocked by a drug-benefit manager. Health-care shares sank 1.2 percent as a group on the S&P 500, contributing the biggest decline. Trading in S&P 500 stocks was 7.4 percent below the 30-day average, according to data compiled by Bloomberg.

     “It’s going to be pretty tough to divine anything meaningful from the market this week with Christmas coming up on Thursday and with trading desks half-staffed,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said by phone. “If anything, you’re likely to see more impetus to show more equity positions and less cash going into year end.”

     After the close of European trading, S&P revised its outlook for the ratings of oil companies Total SA, BP Plc and Royal Dutch Shell Plc to negative, citing the deterioration in the forecast for crude prices. The Stoxx Europe 600 Index gained 0.5 percent today.

     The ratings service earlier raised its forecast for U.S. gross domestic product in 2015, saying lower oil prices may spur consumer spending. S&P now forecasts the U.S. economy to grow next year by 3.1 percent, up from 3.0 percent. The report boosted the S&P 500 index briefly above its Dec. 5 closing record, capping a five-day gain of 5.8 percent, the most in two months.

     Economists surveyed by Bloomberg predict annualized growth in U.S. gross domestic product will be revised up to 4.3 percent for the three-month period, from a previous estimate of 3.9 percent.

     The ruble strengthened 4.7 percent to 55.80 a dollar in Moscow, bringing its two-day appreciation to about 9.3 percent. The Micex Index rose 0.8 percent today.

     China will provide Russia with help if needed and is confident the country can overcome its economic difficulties, Foreign Minister Wang Yi was cited as saying in Bangkok in a Dec. 20 report by Hong Kong-based Phoenix TV.

     OAO Rosneft rallied 2.5 percent after it repaid $7 billion in debt and said it’s generating enough dollars to meet the obligations taken on to buy TNK-BP last year and become the world’s largest traded oil producer.

     The yen fell for a fourth day against the greenback, losing 0.5 percent to 120.08 per dollar, the longest losing streak in a month, as stabilizing oil prices reduced demand for haven currencies. The euro was little changed at $1.2226 after earlier sliding to $1.2220, matching its weakest level since August 2012. The 18-member currency advanced 0.5 percent to 146.82 yen.

     Yields on German 10-year bonds were little changed at 0.60 percent, and rates on similar-maturity U.S. Treasuries were also steady, at 2.16 percent. Yields on Spanish and Portuguese 10- year bonds fell to record lows today.

     Stocks in developing nations climbed for a fourth day, with the MSCI Emerging Markets Index rising 1.3 percent as investors bet on a stabilization in oil prices and that China will step up measures to support economic growth.

     Equity gauges in the Czech Republic, Hungary, Poland and Turkey climbed, while Dubai’s DFM General Index added 2.3 percent, trimming its plunge this quarter to 24 percent.

     The Bloomberg Commodity Index fell 1.5 percent as natural gas, oil and metals retreated. Natural gas futures slumped 9 percent to the lowest settlement since Jan. 9, 2013. Gold futures for February delivery fell 1.4 percent to $1,179.80 on the Comex, while contracts on silver retreated 2.1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

”How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving and tolerant of the weak and strong. Because someday in your life you will have been all of these.” George Washington Carver

As ever,

 

Karen

 

“Life’s most persistent and urgent question is, ‘What are you doing for others?’” Martin Luther King, Jr.  

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAYIce covers trees and plants after a storm in Vienna, Va. Melanie Stetson Freeman

Retired lab chimps live at Chimp Haven, which is also the National Chimpanzee Sanctuary, in Keithville, La. ‘I loved seeing all the different personalities of the chimps – like these two who look like they’re gossiping.’ Melanie Stetson Freeman

Market Closes for December 19^th, 2014     

Market Index	Close	Change
Dow Jones	17804.80	+26.65
		+0.15%
S&P 500	2070.65	+9.42   +0.46%
NASDAQ	4765.380	+16.983   +0.36%
TSX	14468.26	+121.51
		+0.85%

International Markets

Market Index	Close	Change
NIKKEI	17621.40	+411.35
		+2.39%
HANG SENG	23116.63	+284.42
		+1.25%
SENSEX	27371.84	+245.27
		+0.90%
FTSE 100	6545.27	+79.27
		+1.23%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.810	1.868
CND. 30 Year Bond	2.335	2.391
U.S.    10 Year Bond	2.1618	2.2075
U.S. 30 Year Bond	2.7542	2.8182

Currencies

BOC Close	Today	Previous
Canadian $	0.86170	0.86313
US $	1.16050	1.15857
Euro Rate 1 Euro=		Inverse
Canadian $	1.41939	0.70453
US $	1.22309	0.81760

Commodities

Gold	Close	Previous
London Gold Fix	1196.35	1199.00
Oil	Close	Previous
WTI Crude Future	56.52	54.11

Market Commentary:

Canada

By Callie Bost

     (Bloomberg) — Canadian stocks rose for a fourth day, capping their best week in five years, as energy producers led gains in a rally ignited by the Federal Reserve’s pledge to be patient on boosting borrowing costs.

     Energy stocks in the Standard & Poor’s/TSX Composite Index rose 2.9 percent for a 13 percent gain this week, the most in five years. Trican Well Service Ltd. and TransGlobe Energy Corp. soared more than 8.8 percent. BlackBerry Ltd. dropped 1.2 percent after reporting third-quarter revenue short of analysts’ estimates.

     The S&P/TSX index climbed 121.51 points, or 0.9 percent, to 14,468.26 at 4 p.m. in Toronto. The gauge surged 5.6 percent in the past four days as oil prices stabilized and Fed Chair Janet Yellen said the U.S. central bank will probably hold rates near zero at least through the first quarter.

     The index’s weekly gain extended its advance in 2014 to 6.2 percent.

     Canada’s inflation rate slowed more than economists forecast in November, returning to the central bank’s target on a drop in gasoline prices. The consumer price index rose 2.0 percent from a year ago following the October pace of 2.4 percent, Statistics Canada said today from Ottawa.

     A report also showed retail sales were little changed in October as gains in appliances and building materials made up for a drop at automobile dealerships.

     Seven of the 10 main industries in the S&P/TSX advanced. Trading in the benchmark gauge’s stocks was 128 percent above the 30-day average. Volume was heavy because of a quarterly event known as quadruple witching, when futures and options contracts on indexes and stocks expire.

     BlackBerry dropped 1.2 percent to C$11.55. Revenue dropped 34 percent to $793 million in the three months ended Nov. 29, missing analysts’ estimates for $931 million.

     Chief Executive Officer John Chen has said that his goals were to reach break-even cash flow by the end of this fiscal year and then return to sustainable profit and revenue growth next year.

US

By Jeremy Herron and Oliver Renick

     (Bloomberg) — The Standard & Poor’s 500 Index rose a third day, briefly topping its closing record and erasing losses in December, as energy shares surged after oil rebounded. The yen weakened, while metals advanced.

     The S&P 500 rose 0.5 percent at 4 p.m. in New York, extending a three-day rally to 5 percent, the most since November 2011. Energy shares in the index paced gains as U.S. oil rallied as much as 5 percent. The Stoxx Europe 600 Index added 0.4 percent for its best week in a year. The yield on 10- year Treasury notes fell three basis points to 2.18 percent. The ruble strengthened to 59.45 a dollar and Japan’s currency declined against all 16 major peers.

     The MSCI All-Country World Index capped its biggest weekly advance since the end of October after the Federal Reserve pledged patience on raising U.S. interest rates and Switzerland’s central bank introduced negative deposit rates. The Bank of Japan held monetary policy steady today, almost two months after unexpectedly boosting stimulus. U.S. equities trading may be subject to unexpected swings today because of a quarterly event known as quadruple witching, when futures and options contracts on indexes and stocks expire.

     “The Fed set the tone and that what’s fueling the market right now,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said in a phone interview.

     Fed Chair Janet Yellen said this week that policy makers are likely to hold key rates near zero at least through the first quarter, even as the U.S. economy strengthens. The central bank, in a statement after its last meeting of 2014, replaced a reference to borrowing costs staying low for a “considerable time” with a pledge to be patient on the timing.

     The S&P 500 surged 4.5 percent in the previous two days, erasing four-fifths of the seven-day decline that began Dec. 5. The gauge pulled within one point of its all-time high today.

     The index capped its biggest weekly gain in almost two months with a 3.4 percent gain. It has advanced 0.2 percent in December, headed for a seventh straight advance in the year’s final month.

     A recovery would mark the fifth time this year that the S&P 500 has come back after falling more than 4 percent from a high. In comparable drops beginning in January, April, July and September, the index needed about a month to erase losses, data compiled by Bloomberg show.

     Among shares that moved today, energy producers rallied 3.1 percent. The group climbed 9.8 percent in three days. Raw-materials companies gained 1.2 percent, as nine of the 10 main industries advanced. Nike Inc. slid 2.3 percent after saying future orders trailed analysts’ estimates

     Europe’s Stoxx 600 extended its weekly gain to 3 percent as commodities producers advanced after its worst week in three years.

     Air France-KLM Group lost 8.1 percent after cutting its annual profit target and saying it would push back delivery of some aircraft in the next two years. BASF SE declined 1.6 percent after saying a plan to swap natural gas assets with OAO Gazprom has fallen through. Roche Holding AG fell 6.3 percent after reporting disappointing results from a drug-combination trial of breast-cancer treatments.

     President Francois Hollande became the first major European leader to suggest easing sanctions on Russia, while German Chancellor Angela Merkel said the region is united in its stance.

     The MSCI Emerging Markets Index added 1 percent. It rose 3.8 percent in the past three days, its steepest advance in 13 months, as China’s benchmark stock index climbed to the highest level since November 2010.

     The Shanghai Composite Index rallied 1.7 percent as Aluminum Corp. of China Ltd. led a rally for metal companies on an asset restructuring plan and transport shares surged on lower oil prices. BYD Co. rebounded 14 percent in Hong Kong after the electric carmaker said it confirmed with shareholder Berkshire Hathaway Inc. that it has no intention to cut its stake.

     Russia’s benchmark Micex Index slid 1.9 percent, capping a weekly slide of 0.7 percent. The dollar-denominated RTS Index had it fourth weekly loss.

     The ruble strengthened 5.1 percent to 58.96 a dollar, paring a weekly decline. The currency rebounded from its record low of 80.10 a dollar reached Dec. 16 as as Russian President Vladimir Putin struck an uncompromising stance over the nation’s financial woes.

     The yen depreciated 0.6 percent today to 119.57 per dollar after weakening 2 percent during the previous two days. Japan’s currency declined 0.1 percent to 146.19 per euro. The dollar was up 0.5 percent at $1.2249 per euro.

     The Bank of Japan maintained unprecedented stimulus, as Governor Haruhiko Kuroda’s bid to stoke inflation faces increasing challenges from the tumble in oil prices.

     Exports have shown signs of picking up, while production has started to bottom out, the BOJ said, striking a more upbeat tone in its view of the world’s third-largest economy.

     West Texas Intermediate oil climbed 4.5 percent to settle at $56.52 a barrel in New York, after sinking to the lowest closing price since May 2009 yesterday. The U.S. benchmark is still down 42 percent this year. Brent crude rose 4.5 percent to close at $61.38 a barrel in London.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“You must understand the whole of life, not just one little part of it. That is why you must read, that is why you must look at the skies, that is why you must sing and dance, and write poems and suffer and understand, for all that is life.” Jiddu Krishnamurti

 

As ever,

 

Karen

 

“Life isn’t about finding yourself. Life is about creating yourself.” George Bernard Shaw

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A girl prepares to hit a pinata during a traditional Mexican Christmas celebration known as ‘Posada mexicana’ at La Merced neighborhood in Mexico City. Posada Mexicana is a pre-Christmas celebration to commemorate the journey of the Holy Family from Galilee to Bethlehem. Edgard Garrido/Reuters

A man dressed as Santa Claus hangs on a cable for cable cars while descending from the Sugar Loaf Mountain in Rio de Janeiro.Ricardo Moraes/Reuters

Market Closes for December 18^th, 2014     

Market Index	Close	Change
Dow Jones	17778.15	+421.28
		+2.43%
S&P 500	2061.23	+48.34   +2.40%
NASDAQ	4748.398	+104.087   +2.24%
TSX	14346.75	+132.87
		+0.93%

International Markets

Market Index	Close	Change
NIKKEI	17210.05	+390.32
		+2.32%
HANG SENG	22832.11	+246.37
		+1.09%
SENSEX	27126.57	+416.44
		+1.56%
FTSE 100	6466.00	+129.52
		+2.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.868	1.808
CND. 30 Year Bond	2.391	2.331
U.S.    10 Year Bond	2.2075	2.1339
U.S. 30 Year Bond	2.8182	2.7282

Currencies

BOC Close	Today	Previous
Canadian $	0.86313	0.85892
US $	1.15857	1.16426
Euro Rate 1 Euro=		Inverse
Canadian $	1.42363	0.70243
US $	1.22878	0.81382

Commodities

Gold	Close	Previous
London Gold Fix	1199.00	1195.75
Oil	Close	Previous
WTI Crude Future	54.11	56.47

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks rose, capping the biggest three-day surge in more than three years, as consumer-staples and health-care companies led gains amid a global rally following the Federal Reserve’s pledge to be patient on boosting rates.

     Nine of the 10 main groups in the Standard & Poor’s/TSX Composite Index advanced. Alimentation Couche-Tard Inc. surged 8.3 percent to pace gains in consumer shares, while raw- materials stocks jumped 2.1 percent.

     The S&P/TSX Index increased 132.87 points, or 0.9 percent, to 14,346.75 at 4 p.m. in Toronto. The equity gauge has surged 4.7 percent in the past three days, the most since November 2011. The index is up 5.3 percent for the year.

     The MSCI All-Country World Index advanced 2 percent as U.S. benchmark gauges capped the biggest two-day rally in three years. The S&P 500 added 2.4 percent, while the Dow Jones Industrial Average climbed 2.4 percent for its best day in three years.

     Canadian stocks had their biggest daily advance in three years yesterday as the U.S. Fed said it will be patient on the timing of the first interest-rate increase since 2006. While a faster-than-estimated drop in unemployment is pushing the central bank toward raising rates next year, plunging prices of oil and commodities are holding inflation below its target.

     West Texas intermediate crude fell to a five-year low today, erasing an earlier advanced of as much as 4 percent in New York.

     Energy shares in the Canadian benchmark have advanced 11 percent over three days, the most in six years. Among the biggest moves today, Athabasca Oil Corp. jumped 16 percent while Canadian Oil Sands Ltd. rallying 10 percent.

     Torex Gold Corp. surged 12 percent, while OceanaGold Corp. climbed 9.1 percent to pace gains among materials producers.

US

By Callie Bost and Lu Wang

     (Bloomberg) — The Dow Jones Industrial Average surged the most since 2011 and the Standard & Poor’s 500 Index capped its best two-day gain in three years as global equities rallied on the Federal Reserve’s pledge to be patient on boosting rates.

     The S&P 500 added 2.4 percent to 2,061.23 at 4 p.m. in New York. The index climbed 4.5 percent over two days, the most since November 2011. The Dow gained 421.28 points, or 2.4 percent, to 17,778.15, the biggest one-day jump since December 2011. Technology shares soared as Oracle Corp. increased the most in six years. About 8.7 billion shares changed hands on U.S. exchanges, 22 percent above the three-month average.

     “Just as with other instances, a dovish Fed is making up for a lot of bad news, from Europe and from other parts of the world,” Russ Koesterich, chief investment strategist at New York-based BlackRock Inc., said in an interview on Bloomberg Television. “This is why you have this rebound rally after a few days of very harsh losses.”

     Today’s gains came amid a global rally. The MSCI All- Country World Index soared 2 percent and emerging-market stocks surged 1.9 percent. The Stoxx Europe 600 Index advanced 3 percent, the most in three years.

     The Chicago Board Options Exchange Volatility Index lost 14 percent to 16.81. The VIX plunged 29 percent over two days, the most since January 2013. The index climbed to a two-month high on Dec. 16 as a slide in oil and signs of a worldwide economic slowdown rippled through financial markets.

     U.S. stocks are rebounding from a seven-day decline that erased $1 trillion from equity prices and coincided with a 15 percent drop in West Texas Intermediate crude between Dec. 5 and Dec. 16. S&P 500 energy producers tumbled 8 percent over the stretch while chemical and mining companies lost 7.4 percent. The S&P 500 is now 0.7 percent away from wiping out all its losses from the recent selloff.

     A full recovery would be the fifth time this year the S&P 500 has come back after falling more than 4 percent from a high. In comparable drops beginning in January, April, July and September, the index needed about a month to erase losses, data compiled by Bloomberg show.

     The Fed meeting took place after a series of government reports showing that the U.S. economy is thriving. Payrolls rose by 321,000 last month, the biggest increase in almost three years, while retail sales increased 0.7 percent, the most in eight months.

     Jobless claims decreased by 6,000 to 289,000 in the week ended Dec. 13, the fewest since early November, a Labor Department report showed today in Washington. The Conference Board’s leading indicators index, a gauge of the outlook for the next three to six months, increased 0.6 percent in November. The median forecast of 49 economists surveyed by Bloomberg called for a 0.5 percent advance.

     “There’s no reason why the S&P 500 cannot continue to chug higher,” said Jonathan Aldrich-Blake, a U.S. equity fund manager at Ashburton Investments in Jersey, the Channel Islands. “The U.S. economy is one of the safest bets in the world, and the Fed coming out with a dovish tone yesterday just gives investors the confidence they needed.”

     Stocks in the benchmark gauge for U.S. equities are heading for their third consecutive annual gain and have risen almost 200 percent since global equities bottomed in 2009. The biggest bull market since the 1990s technology bubble was fueled as the Fed executed three rounds of bond buying to stimulate the economy and held interest rates near zero since December 2008.

     Equities rallied yesterday as Fed Chair Janet Yellen clarified the central bank’s monetary policy plans, saying it is likely to hold rates near zero at least through the first quarter. She also laid out the economic parameters that would need to be met for liftoff to begin later in the year and said that rates probably would be raised gradually thereafter. They may not return to more normal levels until 2017, she added.

      December has been one of the strongest months for equities since the bull market began. The S&P 500 has risen in the year’s final month sixth consecutive times, posting an annual average return of 2.2 percent. The index has pared this month’s decline to 0.3 percent.

     Gains in the measure have been led by health-care companies and utilities, up 20 percent or more from the start of the year, followed by technology producers, makers of household products and banks and brokerages. Energy companies have been the biggest drag, falling 11 percent thanks to declines in four of the last five months.

     Stocks in the S&P 500 are trading at 18.2 times annual earnings after valuations reached a four-year high of 18.3 times profit earlier this month. Income among the gauge’s constituents is poised to rise 3 percent in the fourth quarter and 7.3 percent in 2015, analyst estimates compiled by Bloomberg show.

     Among industries, analysts estimate that earnings will grow fastest next year for consumer discretionary companies, at 14.1 percent, followed by commodity producers at 14 percent and technology makers at 13.2 percent. Energy companies may see profits fall more than 13 percent in 2015, analyst estimates compiled by Bloomberg show.

     All 10 groups in the S&P 500 advanced today, led by technology shares. Oracle jumped 10 percent, the most since 2008, after the software maker reported second-quarter profit and sales that beat analysts’ estimates.

     Microsoft Corp. and International Business Machines Corp. climbed more than 3.6 percent to lead gains in the Dow.

     Energy stocks, which soared the most in three years yesterday, added 2.1 percent even as West Texas Intermediate wiped out a gain of 4 percent, sinking 4.2 percent.

     Hertz Global Holdings Inc. added 5.8 percent after shareholder Carl Icahn reported an increased stake in the car- rental company. Icahn bought 2.63 million shares on Dec. 15.

     Rite Aid Corp. surged 12 percent after quarterly profit and revenue topped analysts’ estimates, helped by an increase in sales of prescription drugs, and the retailer boosted its annual earnings forecast.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Your beliefs become your thoughts, 
Your thoughts become your words, 
Your words become your actions, 
Your actions become your habits, 
Your habits become your values, 
Your values become your destiny.” 
― Mahatma Gandhi

 

As ever,

 

Karen

 

“It is better to fail in originality than to succeed in imitation.” 
― Herman Melville

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in history: Wilbur and Orville Wright completed the first man-powered, heavier-than-air aircraft flight in 1903 near Kitty Hawk, North Carolina. Orville piloted the flight, which lasted only 12 seconds and spanned 120 feet.

William Safire, writer, was born on this day in 1929.

The right to do something does not mean that doing it is right. – William Safire.

On another note, we are off to Hong Kong tomorrow for a couple of days on our way to the Maldives.  Back first week of January, so in addition to the wishes  from myself and my team in the Season’s Greetings cards we mailed to you, I’d just like to take this opportunity to once again wish you and yours the very best holiday season ever.  May 2015 pass a little more slowly than 2014 J!  

Was it ever a fast year – so many of you whom I’ve spoken to lately feel the same way.  And as always, please accept my very deepest gratitude for your very valued and loyal business.  Thank you.

It also looks like we’re in for a Santa Claus rally in the markets – to end the year on a positive note given the action – or lack thereof – by the FOMC today.  Thank you Janet Yellen.

PHOTOS OF THE DAY

A general view from top of the 6030 feet high Wendelstein mountain shows the Alps and surrounding mountains in Germany.Michael Dalder/Reuters

Michelle Cotterill gives a woman a hug in the street at a temporary memorial site close to the Lindt cafe in the central business district of Sydney, Australia. Cotterill said she had a steady stream of hug requests from the mourners who visited the site to pay their respect and leave flower tributes. Three people including a gunman were shot after police ended a siege in the city coffee shop. Rob Griffith/AP

Market Closes for December 17^th, 2014     

Market Index	Close	Change
Dow Jones	17356.87	+288.00
		+1.69%
S&P 500	2012.89	+40.15   +2.04%
NASDAQ	4644.313	+96.479   +2.12%
TSX	14213.39	+351.87
		+2.54%

International Markets

Market Index	Close	Change
NIKKEI	16819.73	+64.41
		+0.38%
HANG SENG	22585.84	-84.66
		-0.37%
SENSEX	26710.13	-71.31
		-0.27%
FTSE 100	6336.48	+4.65
		+0.07%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.808	1.749
CND. 30 Year Bond	2.331	2.293
U.S.    10 Year Bond	2.1339	2.0591
U.S. 30 Year Bond	2.7282	2.6906

Currencies

BOC Close	Today	Previous
Canadian $	0.85892	0.85949
US $	1.16426	1.16347
Euro Rate 1 Euro=		Inverse
Canadian $	1.43471	0.69701
US $	1.23229	0.81150

Commodities

Gold	Close	Previous
London Gold Fix	1195.75	1202.50
Oil	Close	Previous
WTI Crude Future	56.47	55.93

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks rallied for a second day, after tumbling to the lowest level since February last week, as energy companies surged with oil prices and raw-materials providers advanced.

     MEG Energy Corp. and Pacific Rubiales Energy Corp. paced gains among energy stocks, climbing at least 13 percent. Sherritt International Corp. surged 20 percent and Teck Resources Ltd. advanced 8.5 percent to lead gains in raw- materials providers.

     The Standard & Poor’s/TSX Composite Index jumped 259.18 points, or 1.9 percent, to 14,120.70 at 11:28 a.m. in Toronto, extending gains for a second day to 3.1 percent, the best rally in two months. The equity gauge dropped 5.1 percent last week, its worst decline since September 2011. The index is up 3.6 percent for the year.

     Eight of the 10 main groups in the S&P/TSX rose today. Energy shares added 5 percent, extending a two-day climb to 9.2 percent, the most since January 2009. Trading in S&P/TSX stocks was 59 percent above the 30-day average at this time of the day.

     Crude futures rebounded after sliding close to the lowest levels in five years. West Texas Intermediate jumped 1.3 percent.

     Canadian wholesale sales rose in October as higher prices for live animals pushed agricultural receipts to a record high.

     Sales rose 0.1 percent to C$54.2 billion ($46.5 billion), Statistics Canada said today in Ottawa, as farm products surged 13.5 percent to C$815 million. The increase comes as policy makers such as Bank of Canada Governor Stephen Poloz say that sustained momentum in exports and business investment is needed to complete an economic recovery over the next two years.

US

By Callie Bost

     (Bloomberg) — U.S. stocks surged the most since 2013, erasing almost half their December losses, as energy shares rebounded and the Federal Reserve said it will be patient on the timing of interest-rate increases.

     The Standard & Poor’s 500 Index rose 2 percent to 2,012.89 at 4 p.m. in New York, the most since October 2013, after plunging for three sessions. The Dow Jones Industrial Average gained 288 points, or 1.7 percent, to 17,356.87. The Russell 2000 Index of smaller companies surged 3.1 percent for its biggest increase in three years. The VIX tumbled the most since October 2013. About 9.4 billion shares changed hands on U.S. exchanges, the most since October.

     “The game has really changed in terms of inflation,” Jeff Kravetz, the Phoenix-based regional investment director at US Bank’s Private Client Reserve, said by phone. “There’s heightened uncertainty in international markets. The drop in oil prices has kept the lid on inflation. The Fed has to wait to see how these two factors play out. That’s why they retained dovish language.”

     In one day, the S&P 500 made up about 40 percent of the ground it lost in the seven days since touching a record 2,075.37 on Dec. 5. The index jumped back above 2,000 and its 50-day moving average of 2,002.89, levels that when breached on Dec. 15 led to amplified selling. Today’s gain lifted the gauge’s 2014 return to 8.9 percent, the 16th best among global markets this year.

     The S&P 500 fell 5 percent from a record on Dec. 5 through yesterday, as a slide in crude prices and signs of a worldwide economic slowdown rippled through financial markets.

     Investors have seen the wildest fluctuations in U.S. stocks since October. The Chicago Board Options Exchange Volatility Index plunged 18 percent, the most since October 2013, to 19.31 after rising to the highest since Oct. 16 through yesterday.

     The central bank said it will be patient on the timing of the first interest-rate increase since 2006, replacing a pledge to keep borrowing costs near zero for a “considerable time,” and raised its assessment of the labor market.

     The change in guidance is another step in the Fed’s plan to exit from the loosest monetary policy in its 100-year history. While a faster-than-expected drop in unemployment is pushing the central bank toward raising rates next year, plunging prices of oil and commodities are holding inflation below its target.

     Fed Chair Janet Yellen said a rate increase is possible at every meeting, though she doesn’t foresee the first increase in interest rates for “at least the next couple of meetings.”                         

     While today’s statement didn’t mention global market turmoil sparked by oil and the Russian currency crisis, Yellen said any spillover from the financial crisis in Russia is likely to be small.

     “They don’t see inflation pressure on the horizon,” Peter Jankovskis, who helps oversee $1.9 billion as co-chief investment officer of Lisle, Illinois-based OakBrook Investments LLC, said by phone. “With the statement, and if we can see some stabilization in oil prices, we’re well poised for a rally here perhaps through the year-end.”

     The consumer-price index dropped 0.3 percent in November, the most since December 2008, after being little changed the prior month, a Labor Department report showed today. Persistently low inflation allows Fed policy makers more flexibility in raising rates. Plunging fuel costs also will free up money that households can spend on other goods and services, bolstering the economic expansion.

     Crude oil has slumped almost 50 percent over six months as the Organization of Petroleum Exporting Countries seeks to defend market share while a U.S. shale oil boom exacerbates a global glut.

     All 10 major groups in the S&P 500 advanced, with energy shares jumping 4.2 percent, the most in three years, after climbing 0.7 percent yesterday. Raw-materials shares added 2.8 percent.

     Noble Energy Inc. rose 10 percent and Nabors Industries Ltd. surged 9.3 percent, while Newfield Exploration Co. and Transocean Ltd. added 8.5 percent. Exxon Mobil Corp. and Chevron Corp. added at least 3 percent.

     McDonald’s Corp. rose 3.3 percent, the most since March, after activist investor Bill Ackman said the world’s largest restaurant chain could be managed better.

     Ackman, whose Pershing Square Capital Management hedge fund owned shares in Burger King Worldwide Inc., said today in an interview on Bloomberg Television that McDonald’s could learn from its smaller rival. He declined to comment on whether he was taking a stake in McDonald’s.                      

     Royal Caribbean Cruises Ltd. gained 6.6 percent and Carnival Corp. jumped 3.5 percent. President Barack Obama said the U.S. will end more than a half century of isolation of Cuba, initiating talks to resume diplomatic relations, opening a U.S.

embassy in Havana and loosening trade and travel restrictions on the nation.

     Volcano Corp. jumped 55 percent after Royal Philips NV agreed to buy the diagnostic equipment maker for $1 billion.  Shareholders of Volcano will receive $18 a share in cash, Philips said in a statement.

     FedEx Corp. lost 3.7 percent after quarterly profit missed analysts’ estimates as the operator of the world’s largest cargo airline spent more on aircraft maintenance and collected less in fuel surcharges. United Parcel Service Inc. slid 1.32percent.

     Cliffs Natural Resources Inc. retreated 5.7 percent. The biggest U.S. iron-ore producer will need to be recapitalized within the next two years and near-term earnings aren’t sufficient to support its debt load, Credit Suisse Group AG analysts said. The broker cut its share-price target to $1 from $10.
 

Have a wonderful evening everyone.

 

Be magnificent!

All humanity shares the sunlight; that sunlight is neither yours nor mine.

It is the life-giving energy, which we all share.

The beauty of a sunset, if you are watching it sensitively, is shared by all human beings.

 

Krishnamurti

As ever,

 

Carolann

In the middle of every difficulty lies opportunity.

                          -Albert Einstein, 1879-1955

 

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:

As the year winds down, highlights of 2014 are being cited.  Following is one such list that was published today on Bloomberg:

The Top Ten Wines of the Year, as Tasted by Critic Elin McCoy

2014-12-16 14:30:00.0 GMT

By Elin McCoy

     (Bloomberg) — In my quest for the world’s most recommendable wines, I sampled more than 4,000 this year. My top ten most memorable bottles range from a great vintage of a Napa cult classic to a bargain from France’s snowy alps to a new, rare Italian collectible.  All say something about what’s hot in the wine world, and what’s in store for 2015. 

     2012 Antica Terra Angelicall rosé ($75)

     Made from pinot noir vines planted on a rocky pre-historic seabed in Oregon’s Willamette Valley, this unusual rosé — named for alchemy’s invisible Angelicall stone — is one of the most intriguing pink wines I’ve ever tasted. Over dinner in the Dundee Hills with talented winemaker Maggie Harrison, I savored its exotic mineral and spice character and perfumed aromas, the result of macerating the juice longer on the skins. The rosé craze is still with us, so expect more expensive experiments.

      2001 Harlan Estate ($900 to $1,300)

      When you’re invited to the first-ever tasting of 26 vintages of Napa’s Harlan Estate at the winery, you don’t say no. Founder Bill Harlan’s ambition has always been to create an American cabernet-based red that’s the equivalent of Bordeaux’s famous first growths. This dark, powerful stunner, my top wine of the tasting, comes pretty close. Its lush, sensual texture is a Harlan trademark.

      2000 Littorai  B. A. Thieriot Vineyard Pinot Noir (Auction)

      Ted Lemon, owner/winemaker at Sonoma’s Littorai winery is one of the leaders in California’s quest for pinot perfection.

      This 14-year-old red, from a single vineyard on the Sonoma Coast, has a wonderfully expansive bouquet and tastes of cherries and bright red fruit. The 2000 was my favorite at a retrospective of his wines performed at Manhattan’s Per Se restaurant; it shows how well Littorai’s pinots age. While this vintage is impossible to find, the superb 2011 and 2012 can be had for $75 to $150. 

      2007 Domaine du Comte Liger-Belair La Romanee ($1,800 to $2,800)

      One of Burgundy’s new stars, Vicomte Louis-Michel Liger- Belair started reviving his family’s domaine in 2000. La Romanee, his great grand cru vineyard, is just uphill from Romanee-Conti and the wine is already attracting attention at auction. I sampled the sumptuous, seductively spicy, ready to drink 2007 with him at his home in Vosne-Romanee, under the eyes of mounted antelope heads and ancestor portraits. 

      2010 Chateau La Fleur-Petrus ($275)

      I’ve always been a huge fan of this wine from Bordeaux’s tiny appellation of Pomerol, whose vineyards border the much more famous and expensive Petrus. So I grabbed the chance to compare six recent top vintages with Edouard Moueix, whose family owns the estate. The 2010 was the standout for me. Sophisticated, elegant and filled with voluptuous spicy fruit, it’s one more reason to rediscover Bordeaux.  

      1999 Avignonesi Vin Santo di Montepulciano ($200, ½ bottle)

      Thick yet silky, this neglected traditional Italian sweet wine is a complex mélange of flavors: candied orange peel, figs, dark chocolate, dried plums and nuts. I found it on a fall visit to Montepulciano, in Tuscany. This 1999 was perfect with salted caramels at the end of a long lunch at the winery’s restaurant with Avignonesi owner Virginie Saverys. Made from white trebbiano and malvasia grapes that are dried on straw mats for months, it’s fermented and aged in very small barrels for a decade before bottling.  

      2009 Matarocchio Tenuta Guado al Tasso Antinori  ($275 – $350)

      This 100 percent cabernet franc from Piero Antinori’s Guido al Tasso estate in Bolgheri on the Tuscan coast delivered major taste thrills as well as the excitement of discovery. Its rarity

      — only 250 to 500 cases in top vintages — and recent interest in “the other cabernet” guarantee Matarocchio will become a sought-after Italian collectible. So far there are just three vintages — 2007, 2009, and 2011. The 2009, which I sipped at a Zachys pre-auction tasting, is graceful, silky and sleekly elegant.

      1981 CVNE Vina Real Gran Reserva  ($275 – $400)

      Historic Rioja bodega CVNE has been releasing older vintages of its gran reservas, stored in the winery’s “cemetery,” since 2010. The concentrated, savory 1981 Vina Real is one of nine old vintages I tasted with fifth generation owner and winemaker Victor Urrutia at New York’s Alto restaurant. Its wonderfully soft texture and leathery, spicy aromas underscored how undervalued old Spanish wines are.

      2012 Domaine Belluard  Les Alpes  ($25)

      My hands-down bargain of the year is this white from an alpine vineyard near Chamonix, in the Haute-Savoie region of France, which a collector brought to a BYOB dinner during Oregon’s International Pinot Noir Celebration. I’d never heard of the rare gringet grape from which it’s made — and was immediately smitten with its lively, pure, fresh taste. It made me think of melting snow on rocks, a kind of alpine version of flinty Chablis – and served as a reminder that unfamiliar regions and grapes are the best source of top values. 

     1863 Taylor Single Harvest Very Old Tawny  ($3,700)

     Spice cake, ginger, vanilla and butterscotch – the heady, dense flavors of this time-defying 151-year rare tawny port from one of the Douro Valley’s great vintages unrolled on my tongue like some luxurious elixir. Tawnies, unlike vintage port, spend decades mellowing in wooden casks before bottling and Taylor, one of the best port houses, started the fashion for very old ones. No wonder demand for less expensive examples is growing by double digits. 

PHOTOS OF THE DAY

Sienna Thompson-O’Toole, 4, looks at a holographic video of Father Christmas in the window of a house in Derby, central England.Darren Staples/Reuters

Members of Hungary’s Jewish community gather to celebrate Hanukkah and to light the first candle on the menorah in downtown Budapest. Laszlo Balogh/Reuters

Market Closes for December 16^th, 2014     

Market Index	Close	Change
Dow Jones	17068.87	-111.97
		-0.65%
S&P 500	1972.74	-16.89   -0.85%
NASDAQ	4547.836	-57.320   -1.24%
TSX	13861.52	+156.38
		+1.14%

International Markets

Market Index	Close	Change
NIKKEI	16755.32	-344.08
		-2.01%
HANG SENG	22670.50	-357.35
		-1.55%
SENSEX	26781.44	-538.12
		-1.97%
FTSE 100	6331.83	+149.11
		+2.41%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.749	1.784
CND. 30 Year Bond	2.293	2.320
U.S.    10 Year Bond	2.0591	2.1182
U.S. 30 Year Bond	2.6906	2.7476

Currencies

BOC Close	Today	Previous
Canadian $	0.85949	0.85768
US $	1.16347	1.16594
Euro Rate 1 Euro=		Inverse
Canadian $	1.45492	0.68732
US $	1.25050	0.79968

Commodities

Gold	Close	Previous
London Gold Fix	1202.50	1209.25
Oil	Close	Previous
WTI Crude Future	55.93	55.91

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks advanced as energy shares rallied the most in three years after Talisman Energy Inc. surged on deal news to offset further losses in crude oil prices.

     Talisman rallied 48 percent as Repsol SA agreed to buy the oil-and-gas explorer for $8.3 billion. Surge Energy Inc. and Crew Energy Inc. added at least 10 percent. Canadian National Railway Co. and Canadian Pacific Railway Ltd. jumped more than 2.4 percent to pace gains among industrial shares.

     The Standard & Poor’s/TSX Composite Index added 156.38 points, or 1.1 percent, to 13,861.52 at 4 p.m. in Toronto, for the biggest gain since Oct. 23. The equity gauge dropped 5.1 percent last week, its worst decline since September 2011. Trading in S&P/TSX stocks was double the 30-day average.

     Six of the 10 main groups in the S&P/TSX rose today. Energy shares surged 4 percent, the most since November 2011.

     Crude oil resumed losses, with Brent plunging through $60 a barrel for the first time in five years amid few signs that producers are ready to tackle a glut.

     Talisman soared 48 percent to C$8.84. Repsol SA, Spain’s largest energy company, agreed to buy the company for $8.3 billion, ending a months-long search for acquisitions to help boost crude reserves and production.

     Industrial shares advanced 1.9 percent, while materials producers reversed early gains to decline 1.2 percent to the lowest since Nov. 5. Argonaut Gold Inc. and Alacer Gold Corp. sank more than 7.5 percent as the metal slid.

     Non-resident investment in Canadian equities was $4.2 billion in October, marking a 14th straight month of investment. Since the beginning of the year, acquisitions of Canadian equities have totaled $32.8 billion, three times the amount recorded for the same period in 2013. Canadian stock prices were down 2.3% in October, but up 7.3% compared with December 2013.

US

By Callie Bost and Lu Wang

     (Bloomberg) — The Standard & Poor’s 500 Index tumbled, lashing investors with the biggest stock swings in two months, as companies from Microsoft Corp. to Google Inc. led a selloff in technology shares that overshadowed gains in oil producers.

     The S&P 500 fell 0.9 percent to 1,972.74 at 4 p.m. in New York, dropping below its average price for the past 100 days. The Nasdaq 100 Index tumbled 1.6 percent, the most in two months, and S&P 500 technology shares slumped to the lowest since Oct. 30. The Dow Jones Industrial Average dropped 111.97 points, or 0.7 percent, to 17,068.87. More than $9.3 billion shares changed hands on U.S. exchanges, the most since Oct. 16.

     “The whole global growth story is being called into question by this drop in oil, and the tech companies are most vulnerable as that’s one of the biggest sectors in terms of getting revenue from overseas,” Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management LLC, said by phone. Voya oversees $215 billion. “Tech companies will be affected by that as they’re focused on growth.”

     For a second day, investors were whipsawed by stock swings. The S&P 500 fell 0.7 percent in the first 10 minutes of trading, then rebounded, surging as much as 1.4 percent as crude prices erased losses and energy shares rallied. The index reversed gains in the early afternoon, climbed again, only to sink in the final hour. The 44-point move from top to bottom is the biggest for any day since mid-October, when the index was ending its worst retreat in 2014.                       

     Global stocks fell earlier today, with emerging-market equities retreating as much as 1.8 percent, as the benchmark for U.S. oil slid below $54 a barrel. The ruble plunged past 70 to the dollar for the first time as investors shrugged off a surprise Bank of Russia decision to take its key interest rate to 17 percent from 10.5 percent. The iShares iBoxx $ High Yield Corporate Bond exchange-traded fund fell for a ninth day, to the lowest in more than two years. Treasuries and the yen rose.

     Equities also fell after a Chinese factory gauge declined to a seven-month low in December and an index of French manufacturing shrank more this month than estimated.

     “All the markets are incredibly volatile today from gold to Treasuries to junk bond spreads, stocks and currencies,” Jim Paulsen, who helps oversee $345 billion as chief investment strategist at Wells Capital Management, said by phone from San Francisco. “If oil shows some signs of support, which we did today, you have a lot of people coming in behind it. If it breaks down, you have people getting out not wanting to catch a falling knife.”                       

     The Chicago Board Options Exchange Volatility Index, also known as the VIX, added 15 percent to 23.57. The gauge jumped the most in four years last week. The VIX was at a three-month low on Dec. 5.

     The S&P 500 is down 4.6 percent for the month, heading for its first December loss since 2007, after reaching an all-time high on Dec. 5. The gauge is still up 6.7 percent for the year amid better-than-forecast earnings and economic data.

     While concern is growing about the strength of the global economy as tumbling oil prices hold down inflation, U.S. central bankers have reason to be upbeat about 2015 as they gather for a policy meeting today and tomorrow.

     The U.S. economy is forecast to expand at a 2.9 percent pace, the fastest in a decade, according to a survey by Bloomberg, while falling gasoline prices leave consumers more money to spend on other goods, boosting confidence and retail sales.

     Data in the U.S. today showed new-home construction exceeded a 1 million annualized pace in November for a third consecutive month, continuing a slow recovery in the housing market.

     The Fed will look past low inflation and drop a pledge to keep interest rates near zero for a “considerable time” as it seeks an exit from the loosest monetary policy in its 100-year history, economists said before the central bank’s policy decision tomorrow.

     “There continues to be a backdrop of the U.S. economy improving and we’ll probably see some confirmation from the Fed on that,” Jim Dunigan, chief investment officer at PNC Bank NA, which oversees $130 billion, said by phone from Philadelphia. “We’re trading a lot on headlines and much of that has been dominated by crude, credit and currencies, so not exactly the fundamentals to make good equity decisions.”

     Seven of 10 major groups in the S&P 500 declined today, with technology and consumer-discretionary shares slumping at least 1.5 percent.        
     Amazon.com Inc. and Google Inc. each declined 3.6 percent to lead losses in the Nasdaq 100. JPMorgan Chase & Co. analyst Douglas Anmuth cut his 12-month price-target on Google today to $600 from $670, while maintaining an overweight rating, the equivalent of buy.

     Netflix Inc. and Yahoo! Inc. slumped at least 2 percent. Apple Inc. lost 1.4 percent.

     Whirlpool declined 4.9 percent as the company revised its 2014 earnings projection to between $10.90 and $11.10, compared with an earlier estimate of between $11.50 and $12. The maker of home appliances cited “unfavorable” currencies and expenses related to two acquisitions.

     Energy shares in the S&P 500 gained 0.7 percent today. The group has lost 16 percent over the past month, and has plunged 26 percent from a June high. Crude fell about 45 percent this year as the Organization of Petroleum Exporting Countries sought to defend market share amid a U.S. shale boom that’s exacerbating a global glut.                         

     Range Resources Corp., Transocean Ltd. and Diamond Offshore Drilling Inc. advanced more than 3.2 percent. Chevron Corp. added 0.8 percent.

     “The energy sector’s been hit so hard that it’s not going to take much for those stocks to turn around,” Ben Wallace, a portfolio manager at Westborough, Massachusetts-based Grimes & Co Inc., said by phone.

     Boeing Co. added 1.8 percent after boosting a stock buyback plan to $12 billion and raising its quarterly dividend by 25 percent. CVS Health Corp. jumped 2.7 percent to $92.31, the highest ever, after announcing a buyback plan of as much as $10 billion and increasing its dividend by 27 percent. 3M advanced 1.4 percent. The maker of Post-it notes and Scotch tape also boosted its dividend as it projected a gain in 2015 profit.

Have a wonderful evening everyone.

 

Be magnificent!

In nature, action and reaction are continuous.  Everything is connected to everything else.

No one part, nothing, is isolated.  Everything is linked, and interdependent.

Everywhere everything is connected to everything else.  Each question receives the correct answer.

Swami Prajnanpad

 

As ever,

 

Carolann

The greatest mystery of existence is existence itself.

                                     -Deepak Chopra, 1947-

 

 

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:

NO MATTER WHAT

No matter what the world claims,
its wisdom always growing, so it’s said,
some things don’t alter with time:
the first  kiss is a good example,
and the flighty sweetness of rhyme.

No matter what the world preaches
spring unfolds in its appointed time,
the violets open and the roses,
snow in its hour builds its shining curves,
there’s the laughter of children at play ,
and the wholesome sweetness of rhyme.

No matter what the world does,
some things don’t alter with time.
The first kiss, the first death.
The sorrowful sweetness of rhyme.

                         -Mary Oliver

Defenders of the Galaxy just arrived on Shaw on Demand, and if you didn’t get a chance to see it when it was recently playing in movie theatres – as I didn’t – here’s your chance.  We think it is a terrific movie.

PHOTOS OF THE DAY

A man stands by tombstones in Bucharest, Romania, carrying names of Romanian military personnel killed in fighting around the Otopeni airport during the anticommunist uprising 25 years ago. The uprising left thousands dead and ended the rule of dictator Nicolae Ceausescu, who was executed. Vadim Ghirda/AP

A girl touches an art installation depicting a gorilla entitled ‘Silver Back,’ by artist David Mach, as she poses for photographers during a press preview in London of a themed auction entitled ‘Creatures Great and Small’ that features the animal as artistic inspiration. Lefteris Pitarakis/AP

Market Closes for December 15^th, 2014     

Market Index	Close	Change
Dow Jones	17180.84	-99.99
		-0.58%
S&P 500	1989.63	-12.70   -0.63%
NASDAQ	4605.156	-48.439   -1.04%
TSX	13705.14	-25.91
		-0.19%

International Markets

Market Index	Close	Change
NIKKEI	17099.40	-272.18
		-1.57%
HANG SENG	23027.85	-221.35
		-0.95%
SENSEX	27319.56	-31.12
		-0.11%
FTSE 100	6182.72	-117.91
		-1.87%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.784	1.757
CND. 30 Year Bond	2.320	2.303
U.S.    10 Year Bond	2.1182	2.0817
U.S. 30 Year Bond	2.7476	2.7372

Currencies

BOC Close	Today	Previous
Canadian $	0.85768	0.86348
US $	1.16594	1.15810
Euro Rate 1 Euro=		Inverse
Canadian $	1.45101	0.68918
US $	1.24450	0.80354

Commodities

Gold	Close	Previous
London Gold Fix	1209.25	1217.00
Oil	Close	Previous
WTI Crude Future	55.91	57.81

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks fell, extending losses after the worst week in three years, as declines among materials and energy shares offset gains in consumer stocks.

     Materials companies lost 3.3 percent as gold and silver fell on speculation the Federal Reserve is moving closer to raising U.S. interest rates amid an improving economy. Energy shares lost 0.9 percent as oil fell to the lowest level in more than five years. Talisman Energy Inc. rallied 18 percent as people familiar with the matter said Canada Pension Plan Investment Board is weighing a bid for the oil-and-gas explorer.

     The Standard & Poor’s/TSX Composite Index lost 25.91 points, or 0.2 percent, to 13,705.14 at 4 p.m. in Toronto, after rising as much as 0.9 percent and then falling 0.7 percent. The equity gauge dropped 5.1 percent last week, its worst weekly decline since September 2011. Trading in S&P/TSX stocks was 31 percent below the 30-day average at closing time.

     Canadian equities have pared their gain for the year to 0.6 percent, after rallying as much as 15 percent to a record in September. Oil, bank and raw-material shares, which collectively account for two-thirds of the S&P/TSX, are the worst performers among 10 groups this year, led by a 20 percent slump in energy, according to data compiled by Bloomberg.

     The rout in oil prices helped send Canadian consumer sentiment to the lowest in 10 months, according to the Bloomberg Nanos Canadian Confidence Index. Separate data indicated Canada’s housing market stalled in November as demand waned amid over-valuation worries and the slump in oil prices.

     Six of the 10 main groups in the S&P/TSX rose today.                       

     Crude oil resumed losses, with West Texas Intermediate plunging 3.3 percent, after the United Arab Emirates said OPEC won’t rein in production in response to prices that are the lowest in five years.

     Talisman soared 18 percent to C$5.97. Canada Pension initially considered buying parts of Talisman and is now looking at a bid for the whole company after a drop in its share price, one of the people said.

     Repsol SA, which revived acquisition talks with Talisman this month, is discussing a bid for at between C$6 and C$8 a share, two people with knowledge of the matter said. A deal could be reached as soon as this week, the people said.

US

By Callie Bost

     (Bloomberg) — U.S. stocks retreated, sending the Standard & Poor’s 500 Index to its fifth drop in six sessions, as the continuing selloff in oil overshadowed a surge in industrial production and corporate deals.

     The S&P 500 fell 0.6 percent to 1,989.63 at 4 p.m. in New York, falling below its average price for the past 50 days. The gauge lost as much as 1 percent today, slipping below its 100- day moving average before paring the decline. It has lost 4.1 percent since closing at a record on Dec. 5.

     The Dow Jones Industrial Average dropped 100 points today, or 0.6 percent, to 17,180.84. The measure plunged 3.8 percent last week, the biggest drop since November 2011. About 8.4 billion shares changed hands on U.S. exchanges, the highest volume since Oct. 17.

     “People are going to come into these markets looking at the same things they did last week, oil and secondary interest rates,” Randy Frederick, managing director of trading and derivatives at Charles Schwab Corp., said by phone from Austin, Texas. “To me, the oil selloff is a bit overdone and people’s reactions are a bit negative to it. We need to see stability in oil that lasts a couple of days. If we get that, people will stop being concerned.”

     The S&P 500 erased an early advance of 0.8 percent today as crude reversed gains. The benchmark stocks index then fell as much as 1 percent by midday before paring losses. The gauge lost 3.5 percent last week as crude plunged to a five-year low.

     West Texas Intermediate lost 4.3 percent to $55.30 a barrel today. Oil has tumbled 16 percent this month after the Organization of Petroleum Exporting Countries cut its forecast for how much crude it will need to provide in 2015 and the International Energy Agency forecast weaker consumption and increased supply from countries outside of OPEC.

     “This is a continuation of the past three or four trading days,” Joe Bell, a Cincinnati-based senior equity analyst at Schaeffer’s Investment Research Inc., said by phone. “Every time we’ve had a rally, we’ve finished near the low of the day.”

     The S&P 500 pared gains of 1.45 percent Dec. 11 to close the day up 0.5 percent. The next day, U.S. equity losses picked up speed in the final hour as the Dow average plunged more than 100 points and the S&P 500 ended down 1.6 percent, about 2 points above its average price for the last 50 days, a level monitored by technical analysts.                           

     Equities opened higher today as a report showed industrial production surged in November by the most since May 2010 as U.S. assembly lines churned out more consumer goods and business equipment, signaling manufacturing is bolstering economic growth.

     The 1.3 percent gain in output at factories, mines and utilities followed a 0.1 percent increase the prior month that was previously reported as a decline, figures from the Federal Reserve showed. Manufacturing rose 1.1 percent, the most in nine months, and output at utilities was the strongest in almost eight years.

     Investors are also waiting for the Fed’s update on the timing and pace of interest-rate increases. Policy makers may decide on Dec. 17 whether to keep their pledge to hold interest rates low for a considerable time.

     The Chicago Board Options Exchange Volatility Index, also known as the VIX, jumped 78 percent in the past five days, its biggest advance in more than four years. The gauge jumped as much as 18 percent and lost as much as 16 percent today.

     All 10 main industries in the S&P 500 declined. Financials and utilities shares dropped more than 0.8 percent to lead losses, while telephone and industrial stocks performed the best.

     Among U.S. stocks moving today, PetSmart Inc. rose 4.3 percent after a group led by BC Partners agreed to buy it for $8.3 billion. Emerson Electric Co. gained as much as 1.9 percent after selling a power-transmissions business to Regal-Beloit Corp. for $1.4 billion. The stock later pared gains to close down 0.5 percent.

     McDonald’s Corp., Goldman Sachs Group Inc., International Business Machines Corp. and Chevron Corp. lost more than 1.4 percent for the biggest declines in the Dow.

     Boeing Corp. rose the most in the 30-stock gauge, adding 1.1 percent. It extended gains in late trading after saying it would boost its share buyback program and increase its dividend.                      

     Energy shares in the S&P 500 slid 0.7 percent after gaining in early trading, with 34 members declining while nine rose. Chevron dropped 1.5 percent, while QEP Resources Inc. slipped 3.8 percent and Marathon Oil Corp. retreated 2.6 percent.

     Some of last week’s worst performers gained the most today. Nabors Industries Ltd. rose 2.8 percent today after declining 18 percent last week. Exxon Mobil Corp. rose 0.6 percent, following a 7.7 percent plunge last week that was its worst since 2008.

     Diamond Offshore Drilling Inc. climbed 5.6 percent, extending last week’s rally of 12 percent.

     Newmont Mining Corp. lost 5.9 percent for the biggest decline in the S&P 500 as gold for February delivery sank 2.1 percent to $1,196.70 an ounce.

     Ford Motor Co., which is starting to ship its new, fuel- efficient aluminum-bodied F-150 pickup truck, fell 4.7 percent after Deutsche Bank AG downgraded the automaker on concern that the truck won’t command premium prices amid low fuel costs.
 

Have a wonderful evening everyone.

 

Be magnificent!

He is fire and the sun; he is the moon and the stars, he is the air and the sea.

He is this boy, and that girl.  He appears in countless different forms.

He has no beginning, and no end.  He is the source of all things.

Each type of living being is distinct and different.  But when we pierce the veil of difference,

we see the unity of all beings.

 

Svetasvatara Upanishad

As ever,

 

Carolann

 

Art is never finished, only abandoned.

              -Claude Monet, 1840-1926

 

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:

On this day in 1901, the Italian physicist Guglielmo Marconi sent a radio transmission. That wasn’t too unusual. Marconi had been experimenting with radio waves for about seven years, winning him some acclaim. What made this transmission different is from where it came and where it went: from England to St. John’s, Newfoundland, clear across the Atlantic Ocean. Marconi’s detractors said the signal would never reach North America, that the earth’s curved surface would sent the signal off into space. They were, in fact, right, but the signal bounced off the ionosphere and bounced back down to Canada.

On Dec. 12, 1963, Kenya gained its independence from Britain.

Decembrists:  Conspirators in the Russian army who made an unsuccessful attempt to overthrow Tsar Nicholas I in an uprising in Senate Square, St. Petersburg on December 14^th, 1825.The martyrdom of the revolutionaries was a source of inspiration to later generations of Russian dissidents.

Gustave Flaubert’s birthday: December 12^th,1821.

Do not read, as children do, to amuse yourself, or like the ambitious, for the purpose of instruction. No, read in order to live.  ― Gustave Flaubert.

PHOTOS OF THE DAY

Britain’s Prince William poses for a picture with servicemen after attending the ceremony for the Football Remembers memorial at the National Memorial Arboretum in Staffordshire, central England, to commemorate the 1914 Christmas Truce. Andrew Yates/Reuters

Horse riders exercise their mounts though overnight snow near Leyburn in the Yorkshire Dales, northern England. Snowfall has hits parts of northern Britain in the last few days. John Giles/PA/AP

Market Closes for December 12^th, 2014     

Market Index	Close	Change
Dow Jones	17820.83	-315.51
		-1.79%
S&P 500	2002.33	-33.00   -1.62%
NASDAQ	4653.598	-54.563   -1.16%
TSX	13731.90	-173.22
		-1.25%

International Markets

Market Index	Close	Change
NIKKEI	17371.58	+114.18
		+0.66%
HANG SENG	23249.20	-63.34
		-0.27%
SENSEX	27350.68	-251.33
		-0.91%
FTSE 100	6300.63	-161.07
		-2.49%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.757	1.825
CND. 30 Year Bond	2.303	2.364
U.S.    10 Year Bond	2.0817	2.1620
U.S. 30 Year Bond	2.7372	2.8069

Currencies

BOC Close	Today	Previous
Canadian $	0.86348	0.86782
US $	1.15810	1.15231
Euro Rate 1 Euro=		Inverse
Canadian $	1.44279	0.69310
US $	1.24583	0.80268

Commodities

Gold	Close	Previous
London Gold Fix	1217.00	1227.45
Oil	Close	Previous
WTI Crude Future	57.81	59.95

Market Commentary:

Canada

By Callie Bost

     (Bloomberg) — Canadian stocks tumbled with equities around the world, capping the worst week in three years, as the continuing selloff in oil fueled concerns over a global economic slowdown.

     Energy stocks dropped with oil prices as RMP Energy Inc. and Pacific Rubiales Energy Corp. slid at least 7.9 percent. Consumer-discretionary stocks sank as Amaya Inc. plunged 18 percent. Talisman Energy Inc. soared 17 percent on speculation of a deal with Repsol SA.

     The Standard & Poor’s/TSX Composite Index fell 173.22 points, or 1.3 percent, to 13,731.9 at 4 p.m. in Toronto. The equity gauge dropped 5.1 percent over five days, its worst weekly decline since September 2011. Trading in S&P/TSX stocks was 12 percent above the 30-day average at this time of day.

     Canadian equities have pared their gain for the year to 0.8 percent, after rallying as much as 15 percent to a record in September. Oil, bank and raw-material shares are the biggest laggards in Canada for the first time since at least 1988, fueling concern the nation’s economy is fading just as the U.S. is taking off.

     The three industries, which collectively account for two- thirds of the S&P/TSX, are the worst performers among 10 groups this year, led by a 19 percent slump in energy, according to data compiled by Bloomberg.

     All 10 groups in the S&P/TSX declined on Dec. 12, with materials and consumer-discretionary shares dropping 1.9 percent.                         

     Energy shares dropped 1.2 percent, posting an 11 percent decline this week. Benchmark U.S. oil prices extended losses below $58 a barrel as the International Energy Agency cut its global demand forecast for the fourth time in five months.

     RMP plunged 20 percent to C$3.60, while Pacific Rubiales Energy Corp. sank 7.9 percent to C$5.91.

     Amaya plunged 18 percent to C$28.64. The casino operator said today it’s cooperating with Quebec authorities in a probe into trading activities in Amaya securities surrounding its acquisition of Oldford Group Ltd. in 2014.

     Talisman soared 17 percent, the most in six years, to C$5.04. Senior Repsol executives are in Calgary and hope to have a deal before Christmas, the Financial Times reported, citing an unidentified person involved in the negotiations. The price being negotiated is around C$6 to C$8 a share, according to the report.

US

By Jeremy Herron and Joseph Ciolli

     (Bloomberg) — The Dow Jones Industrial Average capped the worst week since 2011, finishing with a 100-point lurch in the final half-hour of trading, as equities tumbled around the world after crude extended declines below $58 a barrel. Treasuries rose and the dollar fell on concern inflation is slipping.

     The Dow fell 1.8 percent at 4 p.m. in New York and the Standard & Poor’s 500 Index dropped 1.6 percent. The 30-stock gauge lost 3.8 percent for the week while the S&P 500 tumbled 3.5 percent, its worst performance in more than two years. West Texas Intermediate crude lost 3.6 percent to $57.81 a barrel. The Stoxx Europe 600 Index capped a 5.8 percent slide for its worst week in three years. Brazil’s Ibovespa equity benchmark entered a bear market. Ten-year Treasury note yields dropped to an eight-week low.

     “Clearly the oil situation is driving things,” Randy Warren, who manages more than $100 million at Exton, Pennsylvania-based Warren Financial Service and Associates Inc., said in a phone interview. “At first it was just oversupply of oil. But now it’s that, plus fear of a world economy that’s growing too slow. Those fears are definitely outweighing the positive signs we’re seeing domestically.”

     The selloff picked up speed in the final hour as the Dow plunged 100 points and the S&P 500 slid to 2,002.42 from 2,016.14, ending about 2 points above its average price for the last 50 days, a level monitored by technical analysts. At about 2:50 p.m., March futures on the benchmark gauge for U.S. equities slipped below 2,000 for the first time since Nov. 4.                        

     Oil dropped 12 percent for the week, the 10th weekly slide since the start of October. The International Energy Agency cut its forecast for global demand in 2015. While the lower fuel prices hurts producers, that’s boosting demand for bonds as central banks in Europe and Asia maintain stimulus to fight deflation.

     More than $1 trillion was erased from the value of global equities this week. Stocks around the world fell today, with after November Chinese factory production slowed more than estimated. The MSCI All-Country World Index lost 1.4 percent, extending a weekly rout to 3.8 percent, its worst since May 2012.

     The Chicago Board Options Exchange Volatility Index, a measure of the cost of options on the S&P 500 known as the VIX, has jumped 78 percent this week, its biggest weekly rally in more than four years.                         

     This week’s retreat in stocks mirrored a tumble in speculative grade credit. The iShares iBoxx High Yield Corporate Bond exchange-traded fund plunged 3.4 percent over the five sessions, the biggest decrease since 2012. The security lost 1.4 percent on Dec. 12, falling to the lowest level since June 2012.

     Treasuries rallied, with benchmark 10-year yields sinking to the lowest since mid-October. The spread between Treasury 30- year bonds and five-year notes narrowed to as little as 120 basis points, its lowest level in almost six years as oil declines fueled demand for the longest maturities on bets inflation will slow.

     U.S. equities briefly pared losses today as data showed Americans’ confidence rose in December to an almost eight-year high, pointing to a pickup in holiday-related purchases.

     Data yesterday showed that retail sales rose 0.7 percent in November as consumers used some of the money saved at the gas pump to purchase electronics, clothing and furniture.                           

     Declining energy costs led to a faster-than-forecast drop in wholesale prices in the U.S., signaling inflation pressures remain weak even as the world’s largest economy is expanding.

     Persistently weak inflation has allowed Federal Reserve policy makers, who are scheduled to meet next week, room to keep interest rates near zero after ending monthly asset purchases in October as the economy strengthens.

     “With falling oil prices and the stronger dollar, pipeline pressures are minimal,” Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, said before the report. “There’s no real threat of higher inflation. The Fed has a lot more leeway.”

     Bill Gross, who joined Janus Capital Group Inc. in September, said there is “very little liquidity” in the corporate bond markets, especially in high-yield debt. “Everyone is trying to squeeze through a very small door,” Gross said today in a Bloomberg Surveillance interview with Tom Keene.                      

     A sharp decline in the price of oil has disoriented markets including changing the perception of the creditworthiness of corporates and countries, said Gross, who left Pacific Investment Management Co. after more than four decades to run an unconstrained fund at Janus.

     In Venezuela, the government and state-run oil company owe $21 billion on overseas bonds by the end of 2016, an amount equal to about 100 percent of reserves. Those figures explain why derivatives traders aren’t only betting that a default is almost certain but that it will most likely happen within a year.

     The Bloomberg Dollar Spot Index fell 0.2 percent to extend a weekly decline to 0.6 percent. The gauge, which measures the greenback against a basket of major peers, had rallied for seven straight weeks amid signs of a strengthening U.S. economy.

     The MSCI Emerging Markets Index fell 0.8 percent, extending the slide in the past week to 4.8 percent, the worst week since June 2013.

     Brazil’s Ibovespa was down 7.7 percent in the past five days for the worst week since 2012 and entered a bear market, losing more than 20 percent from its September peak.                      

     West Texas Intermediate crude for January delivery dropped below $58 a barrel after closing yesterday at the lowest level since 2009. Brent crude slid 2.9 percent to $61.85 today.

     Gold fell 0.3 percent to $1,222.50 an ounce, trimming a second weekly advance amid declining oil prices and prospects for higher U.S. interest rates.

     The Stoxx 600 plunged 2.6 percent today, pushing its weekly slide to 5.8 percent, the most since September 2011. All 19 of the main groups in the index retreated in the past five days, with energy and resources producers leading the declines with losses of at least 8.5 percent.

     Royal Dutch Shell Plc slid 3.2 percent today and BP Plc fell 3.3 percent. Rio Tinto Group dropped 2.4 percent.

     “With oil furthering its decline, all commodities are under pressure, especially miners,” Claudia Panseri, a global equity strategist at SG Private Banking in Paris, said by phone. “The recent data is pointing to a slowdown in China. For people expecting a turnaround in world GDP growth this is clearly a disappointment.”

     All of the 18 western-European markets declined. Greece’s ASE Index extended a drop this week to 20 percent, the most since 1987, amid concern a potential snap parliamentary election will open the door to anti-austerity leadership.

     Japan’s Topix index gained 0.2 percent, paring this week’s decline to 3.2 percent. Japan heads for a parliamentary election on Dec. 14 after Prime Minister Shinzo Abe last month called for a referendum on his economic policies.
 

Have a fantastic weekend everyone.

 

Be Magnificent!

From Him woman was born; and from Her man was born.

From His mind the moon was born; from His eye the sun was born; from His breath the wind was born.

From His navel the atmosphere was born; from His head the sky was born;

and from His ear the four quarters of the sky were born

Thus the universe was in order.

 

Rig Veda

As ever,

 

Carolann

 

Love is a chain of love as nature is a chain of life.

                         -Truman Capote, 1924-1984

 

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:

December 11, 1936: Edward VIII abdicates to marry Wallis Simpson.

I read an email from Saks today that advised its readers that this holiday season sequins are what’s in.    So sparkle away!

SEQUINS (from the Encyclopedia of the Exquisite)

The word “sequin” is a Frenchified version of the Venetian zecchino, a pure god coin the republic first issued in 1284.  Some say that when the currency became obsolete, enterprising  Venetian ladies pierced the oldzecchino coins and embroidered their clothes with them, igniting the bedazzling fashion.  How easily, then as now, a simple row of sequins turns the ordinary snazzy.

  Though ancient Roman women didn’t wear sequins stitched to their clothes, they did wear coin jewelry as early as the third century AD.  The jingling tradition was carried on in the folk costumes of Turkey, Romania, Greece, and Syria, where glittering head scarves and bridal costumes flickered with coinlike discs.  No mere display of wealth, the scintillation offered magical protection, confusing the evil eye.  In the old days, the coins were thought even more potent when stamped with the image of a mighty ruler.  Fake coins printed with images of ancient emperors, like Constantine or Alexander the Great, were made into amulets throughout Byzantium.

  Later, sparkling sequins punched from fine sheets of brass, gold, or silver glimmered from the costumes of Henry VIII, Edward IV, and Queen Elizabeth I.  They brightened the French court during the eighteenth century, and Parisian fashion in the next, when dressing up with spangles was expected of stage performers.  “Sequins create a charming effect.  They catch the light in sudden and unexpected flashes that shimmer brilliantly before the eyes,”  French critic Théophile Gautier (1811-1872) wrote in 1837, bored with the virginal white worn by the local ballerinas.  “What a dancer really needs are feathers, tinsel, silver tassels, gilded bells, all the crazy, fantastic dress of the wandering player.”

  While the Gilded Age saw its share of sequins, as did the 1920s when the flappers shone in dresses glazed with celluloid sequins, in the 1930s sequins went Hollywood.  Gautier would have loved the brilliantly shimmering costumes created by the era’s most powerful costume designer.  Gilbert Adrian (1903-1959) – known simply as Adrian.

  Adrian defined mid-twentieth century American glamour, dressing stars such as Joan Crawford, Marlene Dietrich, Jean Harlow, and Greta Garbo over the course of 233 films during his long career.  His MGM workshop swarmed with as many as 250 seamstresses, tailors, pattern makers, and embroiderers, making slinky gowns slathered with sequins,  His dresses caught the light, livening up the on-screen black-and-white palette, but when movies went Technicolor, Adrian brought sequins into the future.  He secured his legendary status in 1939 by creating Judy Garland’s famous ruby-red sequined slippers for The Wizard of Oz.

PHOTOS OF THE DAY

A jay bounces in the snow in Kielder Forest, northeastern England, as snow sweeps across the area. Thousands of homes are still without power after gales and lightning strikes caused by a so-called ‘weather bomb’ swept the north of the country. Owen Humphreys/PA/AP

Two cyclists are reflected in a puddle shortly after a storm on the banks of the river Rhine in Duesseldorf, Germany. Marius Becker/dpa/AP

Market Closes for December 11^th, 2014     

Market Index	Close	Change
Dow Jones	17596.34	+63.19
		+0.36%
S&P 500	2035.33	+9.19   +0.45%
NASDAQ	4708.160	+24.135   +0.52%
TSX	13905.12	+52.17
		+0.38%

International Markets

Market Index	Close	Change
NIKKEI	17257.40	-155.18
		-0.89%
HANG SENG	23312.54	-211.98
		-0.90%
SENSEX	27602.01	-229.09
		-0.82%
FTSE 100	6461.70	-38.34
		-0.59%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.825	1.832
CND. 30 Year Bond	2.364	2.38
U.S.    10 Year Bond	2.1620	2.16
U.S. 30 Year Bond	2.8069	2.83

Currencies

BOC Close	Today	Previous
Canadian $	0.86782	0.87110
US $	1.15231	1.14797
Euro Rate 1 Euro=		Inverse
Canadian $	1.42933	0.69963
US $	1.24041	0.80619

Commodities

Gold	Close	Previous
London Gold Fix	1227.45	1225.15
Oil	Close	Previous
WTI Crude Future	59.95	60.94

Market Commentary:

Canada

By Eric Lam

     Dec. 11 (Bloomberg) — Canadian stocks rose, after plunging the most in 17 months yesterday, as banks advanced after the U.S. reported better-than-forecast retail sales and unemployment data.

     Painted Pony Petroleum Ltd. rose 4.7 percent to pace an advance among energy stocks after yesterday’s selloff. Gildan Activewear Inc., the clothing exporter, added 2.6 percent. National Bank of Canada and Bank of Montreal advanced at least 0.7 percent as financial shares climbed for the first time in six days.

     The Standard & Poor’s/TSX Composite Index rose 52.17 points, or 0.4 percent, to 13,905.12 at 4 p.m. in Toronto, paring an earlier gain of as much as 1.7 percent. The equity gauge has dropped 3.9 percent this week, narrowing its advance this year to 2.1 percent.

     Oil, bank and raw-materials are the biggest laggards in Canada for the first time since at least 1988, fueling concern the nation’s economy is fading just as the U.S. is taking off. The three industries, which collectively account for two-thirds of the S&P/TSX, are the worst performers among 10 groups this year, led by a 18 percent slump in energy, according to data compiled by Bloomberg.

     Stocks rallied early today as data showed retail sales in the U.S. jumped 0.7 percent in November, the biggest gain in eight months, as higher wages and cheaper fuel fueled shopping sprees for American consumers. Another report showed fewer Americans filed claims for jobless benefits last week.

     Telus Corp. jumped 3.9 percent to C$41.64 and Rogers Communications Inc. advanced 2.4 percent to C$45.06 as telephone stocks rallied 2.3 percent as a group, the most in the S&P/TSX. Nine of 10 industries advanced in the benchmark Canadian equity gauge on trading volume 23 percent higher than the 30-day average today.

     Painted Pony jumped 4.7 percent to C$9.55 and Calfrac Well Services Ltd. climbed 3.7 percent to C$9.05.

     The S&P/TSX Energy Index rose 0.1 percent, trading near a two-year low. The industry group has slumped 11 percent in December, on pace for a fourth month of declines, the longest stretch since 2011.

US

By Oliver Renick

     Dec. 11 (Bloomberg) — U.S. stocks rebounded from the worst day in seven weeks, as better-than-forecast data on retail sales and unemployment boosted confidence in the economy to overshadow a renewed selloff in oil.

     Benchmark indexes retreated from their highs of the day as oil dropped below $60 a barrel for the first time since 2009, erasing a rally in energy shares. Staples Inc. gained the most in the Standard & Poor’s 500 Index as consumer discretionary stocks rallied 0.7 percent as a group. Urban Outfitters Inc. jumped 7.6 percent, pacing gains among retail shares, which climbed 1 percent.

     The S&P 500 added 0.5 percent to 2,035.33 at 4 p.m. in New York after climbing 1.5 percent earlier. The Dow Jones Industrial Average rose 63.19 points, or 0.4 percent, to 17,596.34, trimming a prior gain of 1.3 percent. About 7.2 billion shares traded hands on U.S. exchanges, 4.9 percent above the three-month average.

     “When you see a big decline like we did yesterday we’re poised for a little bit of a bounce back and retail sales are helping,” Larry Peruzzi, the Boston-based director of international trading at Cabrera Capital Markets LLC, said by phone. “Globally, we’re still one of the bright spots. Retail sales are always an indication that consumers are feeling good.”

     The S&P 500 slid 1.6 percent yesterday as a collapse in oil prices rippled through the financial markets, sending all 10 industry groups in the benchmark equity gauge down at least 1 percent. The Chicago Board Options Exchange Volatility Index, the measure of options prices known as the VIX, climbed 8.4 percent today after spiking 24 percent yesterday. The gauge has surged 70 percent in the past four days, the most since August 2011.                           

     West Texas Intermediate crude fell 1.6 percent to settle at $59.95 a barrel, after yesterday plunging 4.5 percent. The rout caused concern over the strength of the global economy. Oil’s collapse into a bear market has been exacerbated as Saudi Arabia, Iraq and Kuwait, OPEC’s three largest members, offered the deepest discounts on exports to Asia in at least six years. The market will correct itself, according to Saudi Arabian Oil Minister Ali Al-Naimi.

     Investors are gauging economic data before the Federal Reserve’s policy meeting next week.

     Retail sales in the U.S. rose the most in eight months as shoppers benefited from an improving job market and cheaper fuel. The 0.7 percent gain in purchases matched the highest estimate of economists surveyed by Bloomberg and followed a 0.5 percent advance in October that was larger than previously reported, Commerce Department figures showed.

     Jobless claims decreased by 3,000 to 294,000 in the week ended Dec. 6, a Labor Department report showed. The median forecast in a Bloomberg survey of economists called for first- time applications to hold at the prior week’s 297,000. Claims have been below 300,000 for 12 of the past 13 weeks.

     The S&P 500 will continue to climb on the back of a solid U.S. economy paired with low inflation and a boost to consumers from lower oil prices, according to JPMorgan Chase & Co. The benchmark index will rise to 2,250 in 2015, head strategist Dubravko Lakos-Bujas wrote in a note today. That implies an 11 percent advance from yesterday’s close.

     The strategist’s forecast amounts to a prediction that the U.S. market will keep having days like today, in which the S&P 500 is advancing even as concern grows about a default in Venezuela, Russia’s fifth interest-rate increase fails to stem the ruble’s worst rout since 1998 and Greek stocks cap a three- day retreat in which they lost 20 percent.

     All of the 10 main groups in the S&P 500 advanced, with utility and consumer shares rising more than 0.7 percent to lead the advance.

     Urban Outfitters surged 8.2 percent to $32.48, leading the surge among retailer stocks.

     Staples advanced 8.7 percent to $16.10, the highest in a year. Starboard Value LP, the activist investor that successfully pushed for the merger of Office Depot Inc. and OfficeMax Inc. last year, disclosed a 5.1 percent stake in the company.

     Keurig Green Mountain Inc. added 1.1 percent to $139.69 after renewing a partnership with Caribou Coffee Co. with a 10- year agreement for manufacturing, marketing, distribution and sale of Caribou in Keurig’s hot brewing system.

     Energy stocks in the S&P 500 were little changed as a group, paring an earlier advance of as much as 2.5 percent. The group lost 3.1 percent yesterday as oil fell to a five-year low and the Organization of Petroleum Exporting Countries said global demand for crude will drop next year by about 300,000 barrels a day to 28.9 million, the least since 2003.

     Diamond Offshore Drilling Inc. climbed 3.4 percent to $33.93, while Oneok Inc. jumped 2.3 percent to $45.67. Nabors Industries Ltd. dropped 3.1 percent.
 

Have a wonderful evening everyone.

 

Be magnificent!

One drop of the sea cannot claim to come from one river, and another drop of the sea from another river,

the sea is a single consistent whole.  In the same way all beings are one; there is no being

that does not come from the soul, and is not part of the soul.

 

Chandogya Upanishad

As ever,

 

Carolann

 

Respect for the truth is an acquired taste.

                  -Mark Van Doren, 1894-1972

 

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