Month: February 2015

Dear Friends,

Tangents:

MARCH 1^ST on Sunday!

March is the Month of Expectation

                       -by Emily Dickinson

March is the Month of Expectation.
The things we do not know—
The Persons of prognostication
Are coming now—
We try to show becoming firmness—
But pompous Joy
Betrays us, as his first Betrothal
Betrays a Boy.

PHOTOS OF THE DAY

Flowers adorn the Hollywood Walk of Fame star of Leonard Nimoy in Los Angeles Friday. Nimoy, famous for playing first officer Mr. Spock in ‘Star Trek’ died Friday. He was 83. Damian Dovarganes/AP

People release sky lanterns ahead of the traditional Chinese Lantern Festival in Pingxi, New Taipei City, Taiwan. Believers release the lanterns as a form of prayer for good luck and blessings. Pichi Chuang/Reuters

Market Closes for February 27^th, 2015     

Market Index	Close	Change
Dow Jones	18132.70	-81.72
		-0.45%
S&P 500	2104.50	-6.24   -0.30%
NASDAQ	4963.527	-24.363   -0.49%
TSX	15234.34	-6.82
		-0.04%

International Markets

Market Index	Close	Change
NIKKEI	18797.94	+12.15
		+0.06%
HANG SENG	24823.29	-78.77
		-0.32%
SENSEX	29220.12	+473.47
		+1.65%
FTSE 100	6946.66	-3.07
		-0.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.301	1.354
CND. 30 Year Bond	1.919	1.962
U.S.    10 Year Bond	1.9930	2.0191
U.S. 30 Year Bond	2.5903	2.6171

Currencies

BOC Close	Today	Previous
Canadian $	0.79899	0.80022
US $	1.25157	1.24966
Euro Rate 1 Euro=		Inverse
Canadian $	1.40120	0.71368
US $	1.11955	0.89322

Commodities

Gold	Close	Previous
London Gold Fix	1214.00	1208.25
Oil	Close	Previous
WTI Crude Future	49.76	48.17

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little-changed, capping the biggest monthly rally in more than a year, as declines among health-care and technology shares offset a gain in miners and lenders.

     CGI Group Inc. sank 3.5 percent, the biggest drop in a nearly a year, to pace declines among technology stocks. Catamaran Corp. dropped 2.9 percent for a fourth straight decline. Aimia Inc. sank 10 percent after the loyalty management company posted profit and revenue short of analysts’ estimates. Eldorado Gold Corp. rallied 4.2 percent as gold futures advanced in New York. Toronto-Dominion Bank increased 0.9 percent as the nation’s largest lenders climbed a third day.

     The Standard & Poor’s/TSX Composite Index fell 6.82 points, or less than 0.1 percent, to 15,234.34 at 4 p.m. in Toronto, erasing earlier gains in the final minutes of trading. The benchmark Canadian equity gauge has advanced 4.1 percent this month, the biggest gain since October 2013.

     Six of 10 industries in the benchmark Canadian equity gauge retreated Friday on trading volume 15 percent above the 30-day average. Raw-materials producers advanced 1 percent to pace gains.

     Catamaran, the pharmacy benefits management company, lost 3 percent for the biggest drop in almost two months. Shares have slumped 6 percent in the past four days. The midpoint of Catamaran’s forecast for adjusted earnings for the year fell short of analysts’ estimates.

     Eldorado Gold rose 4.2 percent and Detour Gold Corp. advanced 2.6 percent. Gold for April delivery added 0.2 percent to settle at $1,213.10 an ounce in New York.

     Teck Resources Ltd. rose 3 percent and First Quantum Minerals Ltd. added 0.4 percent as copper posted a 7.9 percent gain in February, the most since September 2012

US

By Oliver Renick

     (Bloomberg) — U.S. stocks fell, paring the best month for the Standard & Poor’s 500 Index since 2011, as technology shares slumped and data showed the economy expanded at a slower pace in the fourth quarter than previously reported.

     Apple Inc., one of the best performers of the month, and Facebook Inc. slid more than 1.5 percent to lead declines among technology shares. J.C. Penney Co. tumbled 6.8 percent after giving a lower-than-estimated annual forecast. Gap Inc. rose 3.1 percent after profit beat estimates. Bank of America Corp. declined 1.4 percent after UBS Group AG downgraded the shares.

     The S&P 500 fell 0.3 percent to 2,104.50 at 4 p.m. in New York. The Dow Jones Industrial Average retreated 81.72 points, or 0.5 percent, to 18,132.70. The Nasdaq Composite Index lost 0.5 percent.

     “The last day of a month or quarter is always hard to explain — it can be anything, especially with algos playing such a big part of trading,” said Matt Maley, an equity strategist at Miller Tabak & Co LLC in Newton, Massachusetts. Investors taking profit after a month of gains “played a part as well,” he said.

     Gross domestic product, the value of all goods and services produced, rose at a 2.2 percent annualized rate, down from an initial estimate of 2.6 percent, Commerce Department figures showed. The median forecast of 83 economists surveyed by Bloomberg called for a 2 percent pace.                          

     Consumer spending last quarter climbed by the most in four years, underscoring the underlying strength of the expansion. An improving job market and cheaper fuel costs will probably keep underpinning households this year, which will help the U.S. overcome a slowdown in exports as the dollar climbs and foreign economies struggle.

     Separate data showed more Americans signed contracts to purchase previously owned U.S. homes in January, rounding out a week of housing data that depicted an uneven recovery.

     Consumer confidence cooled in February from an 11-year high, reflecting recent gains in fuel costs and bad winter weather in parts of the U.S. A Chicago index of business activity fell to 45.8 in February from 59.4 in the prior month. Economists were looking for a level of 58.

     U.S. stocks rallied this week after Federal Reserve Chair Janet Yellen said inflation and wage growth remain too low for the central bank to raise rates at its next meeting. She signaled that a change in the Fed’s guidance on interest rates won’t lock it into a timetable for tightening.

     The S&P 500 reached fresh records four times in February, capping its best monthly performance since 2011 with a gain of 5.5 percent. The Dow rose 5.6 percent and the Nasdaq Composite rallied 7.1 percent for February, advancing at one point to within 1.2 percent of its 2000 record.

     The Chicago Board Options Exchange Volatility Index slid 36 percent in February, its biggest monthly drop on record after it jumped as much as 17 percent in January. The gauge, known as the VIX, fell 4.1 percent to 13.34 on Friday.

     Eight out of 10 main groups in the S&P 500 dropped, with technology shares falling the most. The industry had the best performance for the month, surging 7.9 percent.

     Apple lost 1.5 percent, trimming its rally for the month to 9.6 percent. The maker of iPhones reached an all-time high on Feb. 23. Facebook tumbled 1.8 percent after gaining 2.5 percent in the previous two days.

     Salesforce.com Inc. lost 1.2 percent after soaring 12 percent Thursday. Cisco Systems Inc. slumped 1.3 percent.

     J.C. Penney tumbled 6.8 percent. The department-store chain attempting a turnaround gave a disappointing annual forecast and posted a loss in the holiday quarter.

     Gap gained 3.1 percent. The biggest U.S. apparel-focused retailer posted fourth-quarter profit that was higher than analysts estimated as the company’s discount brand Old Navy boosted sales.

     Monster Beverage Corp. surged 13 percent to the highest ever after reporting fourth-quarter revenue and earnings that beat analysts’ estimates. The maker of energy drinks amended a pact with bottlers to make Coca-Cola Co. its preferred partner globally.

     Ross Stores Inc. added 6.8 percent after the apparel retailer announced a buyback.

     The earnings season is drawing to a close, with 96 percent of companies having already reported. Of those, 74 percent beat profit projections and 57 percent topped sales estimates. In the current quarter, analysts predict profit at S&P 500 companies will drop 4.5 percent after a 4.3 percent increase in the final three months of 2014, data compiled by Bloomberg show.

     Bank of America lost 1.4 percent. The bank was downgraded to neutral from buy by UBS analyst Brennan Hawken, after the lender disclosed that U.S. banking regulators demanded changes to capital models ahead of annual industry stress tests. The firm’s changes raise the risk the bank could fail the Federal Reserve’s Comprehensive Capital Analysis Review, Hawken wrote.
 

Have a wonderful weekend everyone.

 

Be magnificent!

The freedom of the seed resides in its fulfillment of its dharma, of its nature and its destiny,

which is to become a tree; the failure to achieve this

becomes for the seed a prison.

The sacrifice through which one thing reaches its fulfillment is not a sacrifice that leads to death;

it is the casting off of chains and the attainment of freedom.

Rabindranath Tagore

As ever,

 

Carolann

 

The most important thing in communication is hearing what isn’t said.

                                                         -Peter Drucker, 1909-2005

 

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:

–from The Wall Street Journal today:

Rhymes for Dimes 
Immense odds tend to be against poets. The publisher of Poetry magazine, for example, receives more than 100,000 poems a year and publishes only 300 of them. But as with most endeavors in life, persistence can go a long way. We tell the story of one Pittsburgh poet who seems to embody the meaning of the word. Billie Nardozzi, 58 years old, writes for love, not money. “I do pretty much one a day—like the vitamins,” he said. For eight years, as often as once a week, he has paid more than $50 for a few inches of space in the Pittsburgh Post-Gazette. “In a period of declining revenue, it’s always nice to have someone pay us,” said the paper’s executive editor. Some of his poems pay tribute to individuals, and several allude to the breakup of his marriage. He once also penned an ode to the people of the U.K. “I think you’re the coolest people/Living on this earth…” The poem goes on, but that’s my favorite part.

 
PHOTOS OF THE DAY

 

The Solar Impulse 2, a solar-powered plane, flies over the Sheikh Zayed Grand Mosque in Abu Dhabi, UAE, Thursday, during preparations for next month’s round-the-world flight. Swiss pilots Bertrand Piccard and Andre Borschberg will attempt to fly around the world in a bid to prove that such a flight is possible without the use of fossil fuels. The solar-powered plane has a wingspan of 72 metres, larger than that of a Boeing 747, but weighs only 2.3 tons, about as much as a family car. Solar Impulse/Revillard/Rezo.ch/Reuters

A bald eagle flies with a dead chicken plucked from a farmer’s field Thursday near Sheffield Mills, Nova Scotia, Canada. The carcass was from the die-offs of local chicken farms that are put out every year for a variety of hawks and eagles to feast on. Tim Krochak/Halifax Chronicle-Herald/AP

Market Closes for February 26^th, 2015     

Market Index	Close	Change
Dow Jones	18214.42	-10.15
		-0.06%
S&P 500	2110.74	-3.12   -0.15%
NASDAQ	4987.890	+20.753   +0.42%
TSX	15241.16	+12.59
		+0.08%

International Markets

Market Index	Close	Change
NIKKEI	18785.79	+200.59
		+1.08%
HANG SENG	24902.06	+123.78
		+0.50%
SENSEX	28746.65	-261.34
		-0.90%
FTSE 100	6949.73	+14.35
		+0.21%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.354	1.321
CND. 30 Year Bond	1.962	1.949
U.S.    10 Year Bond	2.0191	1.9601
U.S. 30 Year Bond	2.6171	2.5615

Currencies

BOC Close	Today	Previous
Canadian $	0.80022	0.80465
US $	1.24966	1.24277
Euro Rate 1 Euro=		Inverse
Canadian $	1.40084	0.71386
US $	1.12098	0.89208

Commodities

Gold	Close	Previous
London Gold Fix	1208.25	1204.75
Oil	Close	Previous
WTI Crude Future	48.17	50.39

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little-changed, trading at a one-week high, as Canadian Tire Corp. advanced on earnings while banks rallied after two lenders raised their dividends, offsetting a decline among oil producers.

     Canadian Imperial Bank of Commerce, the fifth-largest lender in the nation, gained 3.3 percent on better-than-forecast profit. Toronto-Dominion increased 0.7 percent as profit rose on gains in its Canadian and U.S. retail businesses. Royal Bank of Canada increased 0.4 percent after reclaiming the top spot as the nation’s largest lender. Canadian Tire Corp. jumped 8.9 percent as revenue topped analysts’ estimates on rising same- store sales.

     The Standard & Poor’s/TSX Composite Index rose 12.59 points, or 0.1 percent, to 15,241.16 at 4 p.m. in Toronto, the highest close since Feb. 17. The benchmark Canadian equity gauge has advanced 4.2 percent this year. Trading volume was 20 percent below the 30-day average.

     CIBC jumped 3.3 percent, the most since November 2011, to pace gains as financials stocks rose 0.5 percent as a group. The industry accounts for about a third of the benchmark Canadian equity gauge. Seven of 10 industries in the S&P/TSX advanced.

     Toronto-Dominion rose 0.7 percent as the nation’s second- largest lender raised its dividend 8.5 percent. CIBC boosted its dividend 2.9 percent.                          

     Royal Bank rose 0.4 percent. The firm, with C$1.09 trillion in total assets as of Jan. 31, has retaken the top spot as the nation’s largest lender ahead of Toronto-Dominion at C$1.08 trillion, which held the lead for 15 months. Royal Bank had been the leader for much of the last century. The firms are also the first in Canada to pass the C$1 trillion milestone.

     Loblaw Cos. increased 0.5 percent after posting fourth- quarter earnings at the top end of analysts’ estimates.

     Canadian Tire jumped 8.9 percent to a record close of C$133.44. The shares have climbed 13 percent in six days. The retailer posted fourth-quarter revenue of C$3.65 billion, ahead of consensus estimates of C$3.53 billion.

     Capstone Mining Corp. soared 8.9 percent and First Quantum Minerals Ltd. increased 4.4 percent as copper rallied to a six- week high on signs China will take steps to boost economic growth. Iamgold Corp. rose 2.8 percent as gold climbed the most in more than three weeks.

     Trican Well Service Ltd. sank 12 percent and Penn West Petroleum Ltd. lost 9.6 percent as energy producers dropped 1.7 percent as a group. West Texas Intermediate for April delivery declined 5.5 percent as U.S. crude traded at the biggest discount to the global price in 13 months.

US

By Jeremy Herron and Michelle F. Davis

     (Bloomberg) — The benchmark U.S. stock gauge retreated as energy producers slid with crude oil, while a rally in technology shares sent the Nasdaq Composite Index back to a 15- year high. The dollar climbed and Treasuries fell as prices data supported the case for higher interest rates.

     The Standard & Poor’s 500 Index lost 0.2 percent by 4 p.m. in New York, as energy stocks sank the most in a month. U.S. crude fell for the sixth time in seven days, trading at its biggest discount to Brent oil in 13 months amid record American supplies. Gains in Apple Inc. and Microsoft Corp. sent the Nasdaq Composite up 0.4 percent to its highest level since March 2000. The Bloomberg Dollar Spot Index rallied 0.9 percent, the most in three weeks, while 10-year Treasury yields rose six basis points to 2.03 percent. Copper and gold advanced.

     The S&P 500 extended its retreat from an all-time high reached on Tuesday as New York-traded crude fell below $50 a barrel, erasing its February rebound. Core inflation in the U.S., which excludes food and fuel, rose more than economists projected last month, even as overall consumer prices tumbled. Federal Reserve Chair Janet Yellen told U.S. lawmakers this week that inflation and wage growth remain too low for the central bank to consider raising key rates at its next meeting.

     “Oil’s selling off pretty heavily but we also have a very strong move in the dollar today and that’s going to have an impact on oil prices,” James Gaul, a portfolio manager at Boston Advisors LLC, which oversees $2.8 billion, said by telephone. “Some of the bigger technology names are rallying, finally catching up with the rest of the market.”

     The Dow Jones Industrial Average dropped 0.1 percent from a record, reducing its February advance to 6.1 percent. The Nasdaq Composite is up 7.6 percent this month, after climbing 11 of the past 12 days. The MSCI All-Country World Index touched an intraday record Thursday, eclipsing its 2014 peak before falling 0.2 percent as energy companies led declines.

     Among U.S. stocks moving Thursday, Chevron Corp. and Exxon Mobil Corp. lost more than 1 percent as S&P 500 energy stocks slipped 1.8 percent. Salesforce.com Inc. soared 12 percent after raising its revenue forecast. Avago Technologies Ltd. rallied 15 percent after agreeing to buy Emulex Corp.

     Monetary stimulus has spurred equity gains from Europe to Japan this year, even after the U.S. ended its bond-buying program. The S&P 500 has more than tripled during a six-year bull run on the back of accommodative central-bank policies and a doubling in corporate profits. The index has gained 5.8 percent in February, set for its best month since October 2011.

     “Sentiment’s fairly positive when we look at the market’s bounce last week and all of February,” Tim Dreiling, a portfolio manager with the Private Client Reserve at U.S. Bank Wealth Management in Kansas City. “The equity increase has been broad-based — domestically, Europe, some of the growth showed up in emerging markets. Domestically it’s broad-based across almost all of the economic sectors.”

     The dollar surged 1.5 percent to $1.1195 per euro, approaching its strongest level against the 19-nation currency since 2003. The greenback added 0.5 percent to 119.48 yen, appreciating versus all but two of its 16 major peers. The Bloomberg dollar gauge, which tracks the U.S. currency against 10 major counterparts, is up 0.5 percent in February, on track for its smallest advance amid an eight-month rally.

     Ten-year Treasury yields are higher than rates on similar maturity securities issued by 19 other developed nations, according to data compiled by Bloomberg. That advantage is also burnishing the dollar’s allure. Yields on two-year Treasury notes climbed five basis points, or 0.05 percentage point, to 0.65 percent.

     Data Thursday showed the U.S. consumer-price index declined 0.7 percent in January after dropping 0.3 percent in the previous month. The median of economists’ forecasts compiled by Bloomberg called for a 0.6 percent decrease. Core inflation rose 0.2 percent from December, exceeding the 0.1 percent projected increase.

     Bookings for goods meant to last at least three years increased 2.8 percent after a revised 3.7 percent decrease the prior month, data from the Commerce Department showed. Investors are scrutinizing U.S. economic data for clues on the timing of any increase in borrowing costs. The Fed has kept rates near zero since 2008.

     Fed Bank of St. Louis President James Bullard said Thursday that the Fed Open Market Committee should remove its pledge to be “patient” in raising rates in March to give it flexibility to tighten policy as soon as June.

     “If we take it out, then we can move at any of the meetings during the summer,” Bullard, a non-voting member of the FOMC this year, said in an interview with CNBC. “But we don’t have to. We can make it be data dependent, which is what I’d like.”

     Feb Bank of San Francisco President John Williams, who votes on policy this year, expects inflation to return to the central bank’s target level of 2 percent by the end of 2015, and advocated for raising borrowing costs before then.

     “We can’t wait until inflation is back to 2 percent and we’re at full employment before we start removing accommodation,” Williams said in a Fox Business Network interview.

     In Europe, the Stoxx 600 gauge extended a seven-year high, gaining 1 percent. The index has rallied 6.4 percent in February, pushing its climb this year to 14 percent, after Greece clinched a bailout deal and the European Central Bank announced plans to embark on quantitative easing.

     In Germany, the DAX Index rose 1 percent as data showed unemployment in February fell twice as much as forecast.

     Among stocks moving after reporting results, Bayer AG added 3.7 percent after it forecasted an increase in 2015 sales. GDF Suez SA gained 1 percent after saying it will cut costs and posting annual net income in line with estimates. Solvay SA rallied 3.8 percent after reporting quarterly net income that was more than double the average analyst projection.

     The MSCI Emerging Markets Index rose 0.1 percent. The gauge has added 3.4 percent this month, the most since October 2013 as signs of stability in oil prices and progress in talks between Russia and European leaders to resolve the Ukraine crisis boosted sentiment.

     Gold futures advanced the most this month, climbing 0.7 percent to $1,210.10 an ounce as Chinese buyers returned from the Lunar New Year holidays and investors assessed the outlook for Fed rate rises. Copper rose to a six-week high on speculation China will increase government support to boost economic growth and commodity demand.

     West Texas Intermediate crude for April delivery tumbled 5.5 percent to $48.17 a barrel on the New York Mercantile Exchange, while Brent for April settlement slid to $60.05 a barrel in London. Brent is up 13 percent this month, while WTI has gained 1.5 percent. Brent’s premium to WTI stood at $11.39 on the ICE Thursday.

     A report Wednesday showed U.S. crude supplies rose to 434.1 million last week, the highest level in weekly estimates from the Energy Information Administration beginning in 1982.

     Both grades sank about 50 percent in 2014 amid an increasing global oversupply as Saudi Arabia led a decision in November by the Organization of Petroleum Exporting Countries to maintain the group’s output.
 

Have a wonderful evening everyone.

 

Be magnificent!

Do we still not know that the appearance of a seed is in direct contradiction to its true nature?

If you submit the seed to a chemical analysis, you would find in it perhaps some carbon, protein

and many other things, but never the hint of the leaf of a tree.

Rabindranath Tagore

As ever,

 

Carolann

 

Success is finding satisfaction in giving a little more than you take.

                                             -Christopher Reeve, 1952-2004

 

 

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:

Singing

Before the age of the wireless, we all used to sing, all of us, all day long. 
If you walked down the street in Florence in 1350, you would hear every
craftsperson and trader bellowing out songs both secular and divine, folk songs,
courtly love songs, lyrics by Dante  The gloom of the late Puritan age has
killed much of this joyful expression.  But it lingers still, on the building
site or in the garage.  So sing again!  Sing once more, as we used to
in the old days!

 -Dan Kieran and Tom Hodgkinson, The Book of Idle Pleasures

PHOTOS OF THE DAY

Britain’s Prince Harry sits in a hide with wildlife trust patron Conrad Dickinson and photographer Will Nicholls (unseen), as he visits the conservation of red squirrels at Northumberland Wildlife Trust’s red Squirrel Northern England (RSNE) project, at Frankham Woods near Fourstones, northern England on Wednesday. Photo: Jason Friend/Reuters

This photo provided by the Department of Defense US Army White Sands Missile Range shows a NASA Terrier-Black Brant research rocket that launched from White Sands Missile Range, in New Mexico early Wednesday, just beyond the reaches of the earth’s atmosphere. The rocket is carrying an experiment to study ionization in space. Drew Hamilton/AP

Market Closes for February 25^th, 2015     

Market Index	Close	Change
Dow Jones	18224.57	+15.38
		+0.08%
S&P 500	2113.75	-1.73   -0.08%
NASDAQ	4967.137	-0.985   -0.02%
TSX	15231.75	+66.78
		+0.44%

International Markets

Market Index	Close	Change
NIKKEI	18585.20	-18.28
		-0.10%
HANG SENG	24778.28	+28.21
		+0.11%
SENSEX	29007.99	+3.33
		+0.01%
FTSE 100	6935.38	-14.25
		-0.21%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.321	1.314
CND. 30 Year Bond	1.949	1.963
U.S.    10 Year Bond	1.9601	1.9774
U.S. 30 Year Bond	2.5615	2.5850

Currencies

BOC Close	Today	Previous
Canadian $	0.80465	0.80015
US $	1.24277	1.24976
Euro Rate 1 Euro=		Inverse
Canadian $	1.41188	0.70828
US $	1.13607	0.88023

Commodities

Gold	Close	Previous
London Gold Fix	1204.75	1192.50
Oil	Close	Previous
WTI Crude Future	50.39	48.58

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose the most in two weeks as Hudson’s Bay Co. surged to a record after announcing real- estate joint ventures while banks gained on improving earnings.

     Hudson’s Bay soared a record 20 percent after saying the real-estate deals will enable it to pay down about $1.1 billion in debt. Royal Bank of Canada, the nation’s second-largest lender by assets, advanced 3.8 percent after posting earnings ahead of analysts’ estimates. Centerra Gold Inc. rose 5.6 percent as gold climbed from a seven-week low.

     The Standard & Poor’s/TSX Composite Index rose 63.60 points, or 0.4 percent, to 15,228.57 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 4.1 percent this year. Trading volume was 17 percent below the 30-day average.

     Six of the 10 main industries in the S&P/TSX advanced. Hudson’s Bay soared to an all-time high, leading consumer discretionary shares to a gain of 1.9 percent as a group.

     The two joint ventures collectively value the real estate portfolio of Hudson’s Bay at C$9.2 billion, the company said on a conference call with analysts. The retailer will pay down C$1.1 billion in debt and plans to use funds to renovate existing stores.                          

     Royal Bank rallied 3.8 percent, the biggest gain since June 2012, after posting record profit on domestic lending and investment banking. The lender raised its dividend 2.7 percent. National Bank of Canada, which also posted better-than-expected earnings, added 3.3 percent.

     Centerra Gold rose 5.6 percent and Iamgold Corp. increased 2.1 percent as gold for April delivery rose to $1,201.50 an ounce in New York, from a seven-week low. First Majestic Silver Corp. gained 4.6 percent as silver advanced.

     Federal Reserve Chair Janet Yellen signaled Tuesday an interest-rate increase wasn’t imminent. She continues testimony to U.S. lawmakers today.

     BlackBerry Ltd. increased 1.6 percent to the highest level in almost a month after the Waterloo, Ontario-based company announced a partnership with Google Inc. to allow the search giant’s suite of mobile productivity tools to run on the smartphone maker’s device management system.

US

By Michelle F. Davis

     (Bloomberg) — U.S. stocks were little changed near all- time highs as declines in Hewlett-Packard Co. and Apple Inc. offset gains among retailers amid corporate earnings.

     Hewlett-Packard tumbled 9.9 percent after saying earnings will be hurt by the rising dollar. Apple lost 2.6 percent as technology shares slumped 0.7 percent. Chesapeake Energy dropped 9.6 percent as earnings fell short of analysts’ projections. Dollar Tree Inc. and TJX Cos. added more than 2.1 percent to pace gains among retailers.

     The Standard & Poor’s 500 Index fell less than 0.1 percent to 2,113.86 at 4 p.m. in New York. The Dow Jones Industrial Average rose 15.38 points, or less than 0.1 percent, to a record 18,224.57. The Nasdaq Composite lost less than 1 point, ending a 10-day rally that brought the gauge to within 1.6 percent of its 2000 record. About 6.2 billion shares changed hands on U.S. exchanges, 9.2 percent below the three-month average.

     “We’ve had a great run and we’re still up around the new highs,” Matt Kaufler, the Rochester, New York-based portfolio manager of Federated’s Clover Value Fund, said by telephone. “It’s not uncommon to take a brief pause.”

     Stocks rallied on Tuesday after Federal Reserve Chair Janet Yellen said in testimony before the Senate Banking Committee that inflation and wage growth remain too low for the central bank to raise rates at its next meeting. She signaled that a change in the Fed’s guidance on interest rates won’t lock it into a timetable for tightening.

     Yellen repeated that stance before lawmakers a second day.

     The S&P 500 rose last week as minutes from the central bank’s latest meeting showed some policy makers argued for keeping rates low for longer amid risks facing the economy.                         

     Data Wednesday showed new homes in the U.S. sold at a faster pace than forecast in January, a sign of stabilization in the housing industry.

     “Momentum is still there, you have support from central banks, and the U.S. economy is looking pretty decent,” said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen. “Markets interpreted Yellen to be a little more to the softer side. It’s been a rapid rally this month, so maybe we’ll rise a bit more steadily from here.”

     The S&P 500 has gained 6 percent in February, poised for the best monthly performance since October 2011, while the Dow has added 6.2 percent. Both climbed to records yesterday. The Nasdaq Composite has rallied 7.2 percent, buoyed by gains in Apple, which has the biggest weighting in the index.                        

     The Chicago Board Options Exchange Volatility Index rose 1.1 percent to 13.84. The gauge, known as the VIX, is on track for its worst month ever.

     Five of 10 main groups in the S&P 500 fell. Utilities shares lost 1.6 percent, and technology companies slipped 0.7 percent.

     Hewlett-Packard slumped 9.9 percent after forecasting quarterly and full-year profit that trailed estimates, saying a rising U.S. dollar will hurt results as the computer maker prepares to split in two.

     The shares maintained losses after people with knowledge of the matter said Hewlett-Packard is in talks to acquire Aruba Networks Inc., a maker of wireless-network infrastructure used by hotels, universities and shopping malls.

     Apple slid 2.6 percent. BlackBerry Ltd. announced a partnership with Google Inc. to allow the search giant’s suite of mobile productivity tools to run on the smartphone maker’s device management system. BlackBerry added 2.3 percent while Google gained 1.5 percent.

     Chesapeake Energy lost 9.6 percent as earnings fell short of analysts’ projections.

     The earnings season is drawing to a close, with more than 90 percent having already reported. Of those, 74 percent beat profit projections and 56 percent topped sales estimates.

     Analysts predict profit at S&P 500 companies will drop 4.5 percent in the current quarter after a 4.3 percent increase in the final three months of 2014, data compiled by Bloomberg show.

     Lumber Liquidators Holdings Inc. plunged 26 percent, the most since 2011, after Chief Executive Officer Robert Lynch said “60 Minutes” will feature the retailer in an unfavorable light.

     The company also disclosed that the U.S. Department of Justice may file criminal charges stemming from an inquiry that began in 2013 for a violation of import laws.

     Consumer-discretionary shares increased 0.8 percent for the best performance.

     Dollar Tree and TJX added at least 2.1 percent after fourth-quarter earnings topped analysts’ estimates. Macy’s Inc. jumped 2.4 percent, rebounding after a drop of 3.2 percent on Tuesday.

     McDonald’s Corp. jumped 3.9 percent, the most in the Dow, to the highest level since July 18.

     Newfield Exploration Co. jumped 14 percent, the most in six years, after the energy company said it sees production increasing by 18 percent in 2015.

 

Have a wonderful evening everyone.

 

Be magnificent!

Man must understand that when he cuts himself off from all stimulating and purifying contact with infinity,

and no longer relies on it for his subsistence and his health, he risks madness;

he tears himself asunder, and divorces himself from his very substance.

 

Rabindranath Tagore

As ever,
 

Carolann

 
 

To know what you know and what you do not know, that is true knowledge.

                                                                     -Confucius, 551-479 BC

 

 

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:

February 24^th, 1955, Steve Jobs, founder of Apple Computer, was born.

Be a yardstick of quality.  Some people aren’t used to an environment where excellence is expected.  ~Steven Jobs.

Steven Grosz, Psychoanalyst:

In my 25 years of practicing psychoanalysis, I can’t recall anyone ever asking me this question.  Patients do ask what’s the point of doing such-and-such or being married to so-and-so.  And I’ve been asked – more than once – “what’s the point of analysis?”

  Typically, the people who come to see me are in pain.  They may be confused, or anxious, or depressed but, more often than not, their complaints are specific.  They might be suffering because their husband has died, their marriage as collapsed, or they can’t find someone to love.  They don’t ask “what’s the point?”  they don’t want to know the meaning of life – they want the suffering to stop so they can live their lives.

  Often, part of the suffering is that they can’t  articulate it.  Pain is resistant to language; it can reduce us to a stage before language – to the confusion and anguish, the cries we had before we had words.  Karen Blixen said, ”All sorrows can be borne if you put them into a story or tell a story about them.”  But what if a person can’t tell a story about his sorrows?  Experience has taught me that there are stories that we never found a way to voice, because no one helped us to find the words.  When we cannot find a way of telling our story, our story tells us – we dream these stories, we develop symptoms, or we find ourselves acting in ways we don’t understand.  My job as a psychoanalyst is to help others find a way of telling their story.

  We will probably never know what’s the point, but we can find meaning, and ourselves, through speaking and listening.  We are born into a world of feelings and words; we become who we are by sharing our stories.  We need others to help us make sense of ourselves.  From our first words to our last, we’re story-tellers, but we can’t be story-tellers alone – we need someone to listen.

PHOTOS OF THE DAY

The glow of the Aurora Borealis, or Northern Lights, is seen in the horizon in the Kawartha Lakes region, southern Ontario on Monday. The colorful cosmic display of the northern lights is rarely seen in Ontario. Fred Thornhill/Reuters

A view shows the Invalides and the Arc de Triomphe in Paris on Tuesday. Five drones have been seen flying over sensitive sites of Paris, including the US Embassy, between midnight and six o’clock in the night of Monday to Tuesday, according to French police. French authorities have opened an investigation. Gonzalo Fuentes/Reuters

Market Closes for February 24^th, 2015     

Market Index	Close	Change
Dow Jones	18209.19	+92.35
		+0.51%
S&P 500	2115.55	+5.89   +0.28%
NASDAQ	4968.121	+7.149   +0.14%
TSX	15179.60	-20.66
		-0.14%

International Markets

Market Index	Close	Change
NIKKEI	18603.48	+136.56
		+0.74%
HANG SENG	24750.07	-86.69
		-0.35%
SENSEX	29004.66	+29.55
		+0.10%
FTSE 100	6949.63	+37.47
		+0.54%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.314	1.357
CND. 30 Year Bond	1.963	2.012
U.S.    10 Year Bond	1.9774	2.0574
U.S. 30 Year Bond	2.5850	2.6572

Currencies

BOC Close	Today	Previous
Canadian $	0.80015	0.79537
US $	1.24976	1.25727
Euro Rate 1 Euro=		Inverse
Canadian $	1.41737	0.70553
US $	1.13411	0.88175

Commodities

Gold	Close	Previous
London Gold Fix	1192.50	1204.50
Oil	Close	Previous
WTI Crude Future	48.58	48.55

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks retreated, after erasing an earlier gain, as energy producers fell and lenders slid amid disappointing earnings from Bank of Montreal.

     Bank of Montreal dropped 2 percent after profit missed analysts’ estimates on a slowdown in investment banking. Bank of Nova Scotia and Toronto-Dominion Bank, among the nation’s largest lenders, fell at least 0.5 percent. Trican Well Service Ltd. and Penn West Petroleum Ltd. dropped more than 4.9 percent to pace declines among energy shares. PrairieSky Royalty Ltd. jumped 6 percent after profit topped estimates. First Quantum Minerals Ltd. gained 8.1 percent as copper rebounded.

     The Standard & Poor’s/TSX Composite Index fell 35.29 points, or 0.2 percent, to 15,164.97 at 4 p.m. in Toronto, erasing an earlier advance of as much as 0.5 percent. Trading volume was 15 percent below the 30-day average.

     Trican Well Service declined 6.1 percent as energy producers fell 0.3 percent as a group, erasing an earlier gain of as much as 0.9 percent.

     Equities retreated as Bank of Canada Governor Stephen Poloz said oil’s decline is an “important setback” to the nation’s economy. The central bank’s surprise interest rate cut in January will give policy makers time to see how the economy responds to the lower prices, Poloz said in the text of a speech Tuesday at Western University in London, Ontario.                           

     The impact of the oil price shock is immediate, while longer-term benefits of falling energy costs will be more gradual in arriving, Poloz said.

     Bank of Montreal dropped 2 percent, the most in more than three weeks. Canada’s fourth-largest lender by assets posted net income of C$1 billion ($792 million), a 5.7 percent decline from year-ago levels. Earnings were hampered by lower insurance earnings due to falling interest rates.

     First Quantum Minerals surged 8.1 percent, the most in five weeks, and Teck Resources Ltd. rallied 2.8 percent as copper jumped the most in more than a week amid speculation global supplies are set to tighten. Raw-materials producers increased 0.3 percent as a group.

US

By Michelle F. Davis

     (Bloomberg) — U.S. stocks rose, sending benchmark gauges to records, after Federal Reserve Chair Janet Yellen indicated an increase in interest rates is unlikely before mid-year as inflation and wage growth remain too low.

     The Standard & Poor’s 500 Index rose 0.3 percent to a record 2,115.48 at 4 p.m. in New York. The Dow Jones Industrial Average gained 92.35 points, or 0.5 percent, to 18,209.19, as Home Depot Inc. and JPMorgan Chase & Co. rallied. The Nasdaq Composite Index added 0.1 percent, climbing for a 10th straight day to bring it within 1.6 percent of its 2000 record. About 6.1 billion shares changed hands on U.S. exchanges, 11 percent below the three-month average.

     “We have some more time where rates are not going to change dramatically over the near-term,” Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates in Bethlehem, Pennsylvania, said in a phone interview. “The market’s interpreting it as a continuation of policy until proven otherwise — going to need to see continued evidence, job growth, inflation or economic growth picking up before they’re going to change their forward guidance.”

     The S&P 500 has gained 2.8 percent this year and the Dow has added 2.2 percent. The Nasdaq Composite rallied 5.1 percent in the past 10 days, the longest winning streak since July 2009. Apple Inc., which has the biggest weighting in the Nasdaq Composite, has surged 20 percent this year.

     The Chicago Board Options Exchange Volatility Index lost 6 percent to 13.69, the lowest since Dec. 5. The gauge, know as the VIX, is on track for its worst month ever.

     Yellen said in testimony before the Senate Banking Committee inflation that wage growth remain too low even as the job market improves, and she signaled that a change in the Fed’s guidance on interest rates won’t lock it into a timetable for tightening.

     She repeated that the Fed’s pledge to be “patient” on beginning to raise the benchmark interest rate means an increase is unlikely for “at least the next couple” of meetings. The central bank adopted the guidance in December and repeated it in January.

     Investors have been seeking clues on the timing of a U.S. interest-rate increase. San Francisco Fed President John Williams said he wouldn’t rule out a move in June, the Nikkei newspaper reported.                         

     The S&P 500 rose last week as minutes from the central bank’s latest meeting showed some policy makers argued for keeping rates low for longer amid risks facing the economy.

     The Federal Open Market Committee pointed to a strengthening dollar, international flash points from Greece to Ukraine, and slow wage growth as weakening the case for the first rate rise since 2006, according to a record of the Jan. 27-28 meeting.

     “The momentum remains to the upside,” Steve Sosnick, equity risk manager at Timber Hill, the market-making unit of Greenwich, Connecticut-based Interactive Brokers Group Inc., said by telephone. “Volumes have not necessarily been impressive but it’s some combination of ‘don’t fight the Fed’ and ‘the trend is your friend.’”

     Among economic reports Tuesday, the Conference Board’s consumer confidence index decreased to 96.4 in February from 103.8 a month earlier. The S&P/Case-Shiller index showed home prices in 20 U.S. cities appreciated at a faster pace in the year ended in December, a sign that a limited supply is forcing up property values.

     In Europe, finance ministers approved Greece’s package of new economic measures and paved the way for an extension to the country’s bailout agreement. The agreement came on a conference call Tuesday, according to an official involved in the talks who asked not to be named in line with policy.

     Based on the provisional agreement between Greece and its official creditors on Feb. 20, the approval of the list was a condition for extending the availability of bailout funds for another four months.

     Nine of 10 main groups in the S&P 500 rose, buoyed by utilities, financial and phone stocks. Health-care companies had the only loss, falling after nine straight days of gains.

     Home Depot advanced 4 percent to a record after the largest U.S. home-improvement retailer reported fourth-quarter profit that topped analysts’ estimates as consumers spent more on their homes. The company’s board also approved an $18 billion stock buyback program, replacing its previous authorization, and increased the quarterly dividend.                        

     JPMorgan added 2.5 percent. The largest U.S. bank plans to cut as much as $100 billion of some clients’ excess deposits in its efforts to limit capital required under a new U.S. proposal. The firm’s investment bank is reducing the size of its trading book and eliminating offsetting derivative contracts to cut its need for capital, according to an investor presentation.

     Comcast Corp. gained 1.7 percent after Chief Executive Officer Brian Roberts said he still expects the proposed takeover of Time Warner Cable Inc. will close early this year, addressing the growing concerns about the prospects for regulatory approval. Time Warner rose 2.1 percent.

     Coach Inc. rose 3 percent to a nine-month high after Oppenheimer Holdings Inc. analyst Anna Andreeva upgraded the company to outperform from market perform, citing improving profitability and the stabilization of its brand.

     First Solar Inc. rallied 10 percent and SunPower Corp. jumped 18 percent. The two largest U.S. solar-panel manufacturers are planning a joint venture and expect to register for an initial public offering for it.

     Macy’s Inc. dropped 3.2 percent after the largest department-store chain forecast lower-than-estimated annual profit after posting disappointing sales growth during the holiday season.

     Micron Technology slumped 2 percent after a Korea Times report said competitor Samsung Electronics Co. had signed a deal with Apple to supply more than half of that company’s DRAM needs for iPhone 6S, according to Stifel Nicolaus & Co. Inc. analyst Kevin Cassidy.

Have a wonderful evening everyone.

 

Be magnificent!
 
 

Order is the very essence of the universe – the order of birth and death and so on.  It is only man that seems to live in disorder, confusion.

He has lived that way since the world began.

Krishnamurti

As ever,

 

Carolann

 

The art of communication is the language of leadership.

                                            -James Humes, 1942-

 

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:

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

Photos of the Day

 A stagehand sweeps the stage during at the 87th Academy Awards show in Hollywood, Calif., on Sunday. Mike Blake/Reuters

 A bird flies in front of city sky scrapers covered by fog in the center of Warsaw on Monday. Kacper Pempel/Reuters

 Market Closes for February 23^rd, 2015     

Market Index	Close	Change
Dow Jones	18116.84	-23.60
		-0.13%
S&P 500	2109.66	-0.64   -0.03%
NASDAQ	4960.972	+5.005   +0.10%
TSX	15200.26	+28.02
		+0.18%

International Markets

Market Index	Close	Change
NIKKEI	18466.92	+134.62
		+0.73%
HANG SENG	24836.76	+4.68
		+0.02%
SENSEX	28975.11	-256.30
		-0.88%
FTSE 100	6912.16	-3.04
		-0.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.357	1.419
CND. 30 Year Bond	2.012	2.061
U.S.    10 Year Bond	2.0574	2.1117
U.S. 30 Year Bond	2.6572	2.7142

Currencies

BOC Close	Today	Previous
Canadian $	0.79537	0.79783
US $	1.25727	1.25340
Euro Rate 1 Euro=		Inverse
Canadian $	1.42495	0.70178
US $	1.13337	0.88233

Commodities

Gold	Close	Previous
London Gold Fix	1204.50	1208.25
Oil	Close	Previous
WTI Crude Future	48.55	50.34

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, snapping a three-day loss, as Valeant Pharmaceuticals International Inc. rallied after agreeing to acquire a U.S.-based drugmaker, offsetting a drop among the nation’s lenders.

     Valeant jumped 15 percent after reaching a deal to buy Salix Pharmaceuticals Ltd. for $10.1 billion. Parkland Fuel Corp. gained 2.6 percent after agreeing to buy 11 Chevron- branded service stations in British Columbia. Royal Bank of Canada retreated 1.2 percent to pace declines among financials stocks. Ballard Power Systems Inc. surged 7.5 percent after signing technology solutions contracts.

     The Standard & Poor’s/TSX Composite Index rose 28.87 points, or 0.2 percent, to 15,201.11 at 4 p.m. in Toronto. The guage erased losses in the final 30 minutes of trading to extend its gain this  year to 3.9 percent. Trading volume Monday was 24 percent below the 30-day average.

     West Texas Intermediate crude dropped 2.7 percent amid speculation excess supply will increase as Libya restarted a pipeline halted by a fire and the U.S. idled fewer drilling rigs than in previous weeks.

     Prices pared earlier losses after Nigeria’s oil minister was reported by the Financial Times to have said that OPEC members have discussed an emergency meeting. A delegate from the group later denied there are plans for such a meeting. OPEC’s next regular gathering is on June 5.

     Energy shares in the S&P/TSX nearly erased a drop of 1.7 percent on the OPEC report before closing down 0.6 percent. Parkland Fuel added 2.6 percent while Lightstream Resources Ltd. tumbled 10 percent.

     Banks in the Canadian benchmark fell 0.7 percent as a group. The lenders account for about one-third of the broader index by weighting.

     Canadian Western Bank, the lender based in oil-rich Alberta, tumbled 2.8 percent. Royal Bank, the nation’s second- largest lender, retreated 1.2 percent. Bank of Montreal, the first of the big banks to report earnings this week on Tuesday, slipped 0.7 percent.

     Valeant soared 15 percent for the biggest gain since January 2011, extending an all-time high. Shares of the company have surged 20 percent in the past five sessions.

     Valeant’s acquisition of Salix values the company at about $14.5 billion including net debt, and will provide a “modest” addition to earnings this year, according to Bridgewater, New Jersey-based Valeant. The drugmaker expects to win regulatory approval for Salix’s Xifaxan drug for treating irritable bowel syndrome with diarrhea.

US

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — U.S. stocks were little changed, with benchmark indexes near all-time highs, as Apple Inc. rallied to send the Nasdaq Composite Index to its ninth straight gain. Oil fell below $50 a barrel, while gold dropped to a seven-week low. The dollar strengthened and Treasuries rose.

     The Standard & Poor’s 500 Index fell less than 0.1 percent in New York after closing at an all-time high on Friday. The Nasdaq Composite added 0.1 percent to cap its longest rally since September 2010. The yield on 10-year Treasury notes fell five basis points to 2.06 percent. The euro weakened to $1.1336 at 5:15 p.m. in New York, as a Greek official said the nation was working to finalize a list of pledges to the European Union. U.S. oil fell 2.7 percent, and gold slipped to $1,200.80 an ounce.

     Apple Inc. jumped 2.7 percent to pace gains among technology shares, while energy shares slid 0.4 percent as oil resumed declines. Greece had agreed on Feb. 20 to complete by midnight Monday in Athens a list of policies in return for continued funding. An official said the list would be presented Tuesday. Federal Reserve Chair Janet Yellen addresses Congress in two days of testimony starting Tuesday, with investors watching for clues on the timing of an interest-rate increase.

     “In this market, there’s more just a case of waiting and watching Europe, Greece, OPEC, and waiting to hear from Janet Yellen,” Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a telephone interview. “You put all that together, you get a market that doesn’t really have much of a direction. It’s more a case of waiting to hear what the next part of that news will be.”

     Six of the 10 main S&P 500 groups retreated today, with phone shares losing 0.6 percent to pace declines.

     Health-care shares advanced 0.4 percent. Valeant Pharmaceuticals International Inc. climbed 14 percent to the highest ever after saying it will purchase Salix Pharmaceuticals Ltd. for $10.1 billion.

     U.S. stocks posted their longest streak of weekly gains since the beginning of December as Greece reached a deal on Feb. 20 to extend its bailout program and investors speculated the Fed will keep rates lower for longer even as the economy shows signs of picking up speed.

     The Nasdaq Composite Index ended last week on an eight-day winning streak that took the gauge to 4,955.97, less than 2 percent away from a record. The S&P 500 climbed 0.6 percent last week and the Dow rose to its first record of the year.

     Sales of previously owned U.S. homes fell more than expected in January as a tight supply forced up prices, showing the residential real-estate market faces an uneven recovery. Purchases slowed 4.9 percent to a 4.82 million annualized rate, the least since April, according to figures from the National Association of Realtors.

     Strife over Greece’s debt was among risks to the U.S. economy cited by Fed officials as an argument for keeping rates low for longer, according to minutes from the group’s latest meeting released on Feb. 18. Policy makers said after the gathering that they “can be patient” as they consider when to raise borrowing costs, even as they described the labor market as “strong.”

     The Greek reform measures are still subject to validation by the International Monetary Fund, the European Central Bank and the European Commission, the institutions collectively known as the troika which Prime Minister Alexis Tsipras vowed not to recognize.

     “Markets have reacted positively in terms of risk sentiment and we’re seeing the periphery doing very well” because of the Greek deal, said Owen Callan, a fixed-income strategist at Cantor Fitzgerald LP in Dublin. “It takes away the big short-term event risk, even if a medium-term risk is still there.”

     The nascent agreement to extend Greece’s bailout funding re-energized bonds from the euro-region’s most indebted nations, sparking their best day since the European Central Bank announced a 1.1 trillion euro ($1.2 trillion) stimulus plan.

     Italian and Spanish securities surged, and Portuguese 10- year yields touched a record low, as the accord avoided a cash crunch that threatened to push Greece out of the currency bloc.

     The Stoxx 600 advanced for a fifth day to extend the highest level since 2007. The U.K.’s FTSE 100 Index surpassed a record close in intraday trading before closing little changed as lower-than-projected profit at HSBC Holdings Plc pushed the stock lower.

     Greece’s ASE Index slipped 4.5 percent last week. The market was closed on Monday for a holiday. Spain’s IBEX 35 Index climbed 1 percent for one of the biggest rallies among 18 western-European markets.

     Greek government bonds rose for a fourth day, with the three-year note yield dropping 156 basis points, or 1.56 percentage point, to 15.062 percent.

     “Greece will still be an issue for the market for some time,” said Kevin Lilley, who helps manage 15 billion pounds ($23 billion) as head of European equities at Old Mutual Global Investors U.K. in London. “If we can get the agreement made in the next couple of days, which is necessary for this extension, then hopefully the market can pop that to one side for a few months and focus on the underlying economy, which is steadily improving.”

     The Swiss franc weakened with core government bonds on reduced demand for haven assets, depreciating 0.8 percent to 1.07701 per euro. The dollar strengthened 0.4 percent to $1.13327 per euro and the Bloomberg Dollar Spot Index advanced 0.2 percent.

     West Texas Intermediate crude oil for April delivery settled at $49.45 a barrel. Brent was down 2.2 percent at $58.90 in London.

     Oil fell as fields in eastern Libya resumed pumping to Hariga port after a pipeline was repaired, according to state- run National Oil Corp. Oman, the biggest Middle Eastern oil producer that’s not a member of OPEC, is boosting crude output to as much as possible with the global price rout over, said Salim Al Aufi, undersecretary of the oil and gas ministry.

     Copper futures fell for a second straight session on signs that supply is plentiful as demand slows in Europe and China, the world’s biggest user. The metal for  May delivery slid 0.2 percent to settle at $2.5865 in New York.

     Gold futures slid 0.3 percent to settle at $1,200.80 in New York. Prices Monday touched $1,190.60, lowest since Jan. 5.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Do not go where the path may lead, go instead where there is no path and leave a trail.” Ralph Waldo Emerson

 

As ever,

 

Karen

 

“The journey of a thousand miles begins with one step.” Lao Tzu

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Oscar weekend is upon us.  What a daunting task for the selection committee this year as it was such a terrific year for films and so many brilliant acting performances.  I don’t know how you could choose best picture when the choices are Birdman,  Boyhood, Selma, The Theory of Everything, The Imitation Game, American Sniper, The Grand Budapest Hotel – the only contender I haven’t seen yet is Whiplash.  It is a tough choice between Michael Keaton and Eddie Redmayne for  best actor.

We’re off to LA for the weekend for our annual Oscar watching party…

PHOTOS OF THE DAY

Tourists go down a hill in the Alpine skiing resort of Saalbach Hinterglemm in Austria Friday. Dominic Ebenbichler/Reuters

People throw snowballs after a snowstorm in Amman, Jordan, Friday. Muhammad Hamed/Reuters

Market Closes for February 20^th, 2015     

Market Index	Close	Change
Dow Jones	18140.44	+154.64
		+0.86%
S&P 500	2110.30	+12.85   +0.61%
NASDAQ	4955.965	+31.265   +0.63%
TSX	15172.24	-8.09
		-0.05%

International Markets

Market Index	Close	Change
NIKKEI	18332.30	+67.51
		+0.37%
HANG SENG	24832.08	+47.20
		+0.19%
SENSEX	29231.41	-230.86
		-0.78%
FTSE 100	6915.20	+26.30
		+0.38%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.419	1.470
CND. 30 Year Bond	2.061	2.104
U.S.    10 Year Bond	2.1117	2.1239
U.S. 30 Year Bond	2.7142	2.7418

Currencies

BOC Close	Today	Previous
Canadian $	0.79783	0.80036
US $	1.25340	1.24944
Euro Rate 1 Euro=		Inverse
Canadian $	1.42640	0.70107
US $	1.13803	0.87871

Commodities

Gold	Close	Previous
London Gold Fix	1208.25	1209.50
Oil	Close	Previous
WTI Crude Future	50.34	51.16

Market Commentary:

Canada

By Joseph Ciolli

     (Bloomberg) — Canadian stocks were little changed after two days of losses, as declines in financial and energy companies offset gains in consumer and health-care shares.

     Fairfax Financial Holdings Ltd. slipped 4.5 percent to pace declines after announcing it will sell shares to finance the purchase of Brit Plc. Royal Bank of Canada and Canadian Imperial Bank of Commerce decreased more than 1.5 percent. Iamgold Corp. and Eldorado Gold Corp. rose at least 1.7 percent.

     The Standard & Poor’s/TSX Composite Index slid 8.09 points, or less than 0.1 percent, to 15,172.24 at 4 p.m. in Toronto. The gauge had a weekly decline of 0.6 percent after two weeks of gains.

     Seven of the 10 main groups in the S&P/TSX advanced today. Financial companies, which account for about one-third of the broader index by weighting, fell 0.6 percent.

     Canadian retail sales fell at the fastest pace in more than four years in December as consumers scaled back holiday gift purchases, a sign the effects of lower crude oil prices are spreading through the world’s 11th largest economy. Canada’s dollar fell after the report.

     A gauge of energy producers decreased 0.6 percent, extending its slide to four days. Secure Energy Services Inc. and Lightstream Resources Ltd. declined more than 4.5 percent.

     The S&P/TSX Gold Index added 0.2 percent, paring a weekly loss for the gauge. Eldorado Gold, Goldcorp Inc. and Barrick Gold Corp. rose more than 0.8 percent.

US

By Michelle F. Davis

     (Bloomberg) — U.S. stocks rose, sending benchmark indexes to records, after European officials reached a deal to extend Greece’s aid for four months.

     The Standard & Poor’s 500 Index climbed 0.6 percent to a record 2,110.30 at 4 p.m. in New York. The Dow Jones Industrial Average added 154.67 points, or 0.9 percent, to 18,140.44, also an all-time high. The Russell 2000 Index reached a record, and the Nasdaq Composite Index rallied 0.6 percent, up for an eighth straight day to its highest level since March 2000.

     “You don’t have that uncertainty hanging over the market as we enter the end of the week,” Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates in Bethlehem, Pennsylvania, said in a phone interview. “It’s a removal of an obstacle in the way of growth and earnings for companies.”

     This is the first time the Dow has closed at a record this year. It’s been 56 days since the Dow’s last all-time high, reached on Dec. 26. When the S&P 500 reached its first record of 2015 last week, it had been 46 days since the previous one.

     The Dow climbed to closing records on 38 days in 2014, and on 52 occasions in 2013 as the index recovered from the financial crisis to top its previous high from October 2007 for the first time.

     The S&P 500 is up 0.6 percent for the holiday-shortened week. It has gained 2.5 percent this year, trailing all but three of the 24 developed markets tracked by Bloomberg.

     Euro-area finance ministers reached an accord that would keep bailout funds flowing to Greece in return for a commitment to meet certain conditions, buying time to work out the detail of longer-term Greek financing.

     Talks in Brussels between officials from the 19 euro-area countries concluded Friday evening with an agreement to extend aid to Greece for four months.

     The breakthrough in the standoff between Greece and its creditors eases the immediate risk of Prime Minister Alexis Tsipras’s government running out of cash as early as next month.

     U.S. manufacturing expanded at a faster pace in February, according to the Markit Economics preliminary index of U.S. manufacturing. The index rose to 54.3 in February from a final reading of 53.9 a month earlier, the London-based group said Friday.

     Analysts have cut profit forecasts for S&P 500 members amid a rout in oil prices and a rising dollar. They predict earnings will drop this quarter, compared with December projections for an increase. Of the 88 percent of S&P 500 companies that have reported earnings this season, 74 beat projections and 56 percent surpassed sales estimates.

     Nine of 10 S&P 500 main groups gained, led by health-care and industrials rising at least 0.9 percent. Health-care companies advanced for an eighth day, the longest streak in four months.

     The Chicago Board Options Exchange Volatility Index fell 6.5 percent to 14.30. The gauge, know as the VIX, fell 15 percent last week and is on track for its biggest monthly decline since July 2010.

     More than 6.2 billion shares changed hands Friday on U.S. exchanges, 9 percent below the three-month average.                      

     Intuit Inc. rallied 6.2 percent to an all-time high after reporting a narrower-than-estimated quarterly loss and revenue that exceeded forecasts.

     Ann Inc. rose 4.8 percent as the owner of the Ann Taylor and Loft women’s clothing stores is exploring a sale and has reached out to potential buyers in recent weeks, including rival retailers, people with knowledge of the matter said.

     Iron Mountain Inc. fell 5.5 percent, the most in more than a year and a half, after the storage and information management company cut its 2015 outlook, in part to reflect the impact of a stronger U.S. dollar.

     Fannie Mae lost 4.9 percent after reporting a sharp profit decline in the fourth quarter due largely to accounting treatment for billions of dollars in tax credits. Investments in derivatives were primarily responsible for about $2.5 billion of losses in the quarter and $4.8 billion for the full year.
 

Have a wonderful weekend!

 

Be magnificent!

There is an orderliness in the universe, there is an unalterable law governing everything

and every being that exists or lives.

 

Mahatma Gandhi

As ever,

 

Carolann

 

Whatever you do in life, surround yourself with smart people who’ll argue with you.

                                                                             -John Wooden, 1910-2010

 

 

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:

Lunar New Year begins today :)!

Chinese New Year is an important Chinese festival celebrated at the turn of the Chinese Calender. In China, it is also known as the Spring Festival, the literal translation of the modern Chinese name.

Chinese New Year celebrations traditionally run from Chinese New Year’s Eve, the last day of the last month of the Chinese calendar, to the Lantern Festival on the 15th day of the first month. That makes the festival the longest in the Chinese calendar. 

2015 is the year of the Goat or Sheep. This year’s animal according to the Chinese zodiac is yang, in Mandarin. The English translation is goat, sheep, or ram. 

Also….

On this day in 1970, antiwar activists called the Chicago Seven were sentenced after being found guilty of inciting a riot at the August 1968 Democratic National Convention in Chicago. The trial drew a lot of attention as the group used the court as a platform to attack President Nixon, the Vietnam War, racism and oppression.

Photos of the Day

Dragon dancers get on an escalator after a performance inside a shopping mall Thursday in Bangkok, Thailand. Chinese people are celebrating the arrival of the Lunar New Year, the Year of the Sheep. Sakchai Lalit/AP

Two polar bear cubs follow their mother as they venture outside their enclosures for the first time since they were born at Ouwehands Zoo in Rhenen, Netherlands, Thursday. Their father now lives at the Yorkshire Wildlife Park in England. Peter Dejong/AP

Market Closes for February 19^th, 2015     

Market Index	Close	Change
Dow Jones	17985.77	-44.08
		-0.24%
S&P 500	2097.45	-2.23   -0.11%
NASDAQ	4924.699	+18.335   +0.37%
TSX	15180.33	-32.42
		-0.21%

International Markets

Market Index	Close	Change
NIKKEI	18264.79	+65.62
		+0.36%
HANG SENG	24832.08	+47.20
		+0.19%
SENSEX	29462.27	+142.01
		+0.48%
FTSE 100	6888.90	-9.18
		-0.13%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.470	1.472
CND. 30 Year Bond	2.104	2.113
U.S.    10 Year Bond	2.1239	2.0800
U.S. 30 Year Bond	2.7418	2.7102

Currencies

BOC Close	Today	Previous
Canadian $	0.80036	0.80302
US $	1.24944	1.24529
Euro Rate 1 Euro=		Inverse
Canadian $	1.42010	0.70418
US $	1.13655	0.87985

Commodities

Gold	Close	Previous
London Gold Fix	1209.50	1206.00
Oil	Close	Previous
WTI Crude Future	51.16	52.14

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a second day, to a one- week low, as Goldcorp Inc. slumped the most in more than three months on disappointing earnings and energy shares retreated with the price of oil.

     Goldcorp dropped 7.8 percent after a $2.3 billion writedown on a mine led to a quarterly loss. Energy shares slid 0.4 percent as U.S. crude tumbled after a report showed inventories surged a sixth week. Barrick Gold Corp. jumped 5.4 percent on its plan to cut debt by $3 billion. SNC Lavalin Group Inc. slumped 7.1 percent after being charged with attempted bribery and fraud related to projects in Libya.

     The Standard & Poor’s/TSX Composite Index fell 32.42 points, or 0.2 percent, to 15,180.33 at 4 p.m. in Toronto, the lowest close since Feb. 11. The benchmark gauge has gained 3.7 percent this year. Trading volume today was 20 percent below the 30-day average.

     MEG Energy Corp. sank 4.8 percent and Crescent Point Energy Corp. declined 3.8 percent as energy producers retreated for a third day. Crude futures in New York sank 1.9 percent to settle at $51.16 a barrel after earlier touching $49.15.

     Canadian Western Bank, a regional lender based in oil-rich Alberta, slumped 2.5 percent for a third straight decline. The stock has lost 4.7 percent this week.

     SNC Lavalin slumped 7.1 percent, the most since November. The Montreal-based company, the largest construction and engineering firm in Canada, vowed to “vigorously defend itself,” saying that the case involves former employees who left “long ago.”

     Bombardier Inc. fell 2.4 percent before trading was halted. The struggling manufacturer of jets and trains will raise about C$750 million ($600 million) by selling stock, fulfilling a pledge made last week when it unveiled cost overruns on its CSeries family of jets.

     Barrick Gold jumped 5.4 percent. The world’s largest producer intends to sell two mines in an effort to cut debt by $3 billion. Barrick reported a fourth-quarter loss of $2.85 billion, compared with a loss of $2.83 billion a year ago.

US

By Callie Bost

     (Bloomberg) — The Nasdaq Composite Index rose for a seventh straight day, the longest winning streak in a year, as Priceline Group Inc. led a rally in Internet stocks.

     Priceline climbed 8.5 percent after posting better-than- estimated fourth-quarter earnings. Wal-Mart Stores Inc. lost 3.2 percent after saying wage increases and other spending initiatives will boost expenses. Energy companies in the Standard & Poor’s 500 Index slipped 0.8 percent, after earlier falling 2.5 percent, as crude trimmed losses.

     The Nasdaq Composite climbed 0.4 percent to 4,924.7 at 4 p.m. in New York, the highest level since March 2000. The S&P 500 fell 0.1 percent to 2,097.45. The Dow Jones Industrial Average declined 44.08 points, or 0.2 percent, to 17,985.77. About 6 billion shares changed hands on U.S. exchanges, 13 percent below the three-month average.

     “Markets are either making new highs or going to pre-2008 highs,” Paul Zemsky, the head of multi-asset strategies at Voya Investment Management LLC, which oversees $213 billion, said by phone from New York. “The backdrop is still pretty good for equities and people are still climbing the wall of worry. With interest rates low around the world, you’re not going to find many other places with better returns.”

     The Nasdaq Composite has soared 4.2 percent in seven days. It is now 2.5 percent away from an all-time high reached in March 2000, which preceded a 78 percent drop in the shares.

     While the Nasdaq has been rallying, the S&P 500 has barely budged from its record level. The benchmark index has closed within four points of 2,100 for four consecutive days, reaching its highest level of 2,100.34 on Feb. 17.

     The S&P 500 also stalled at a record level in August, when it ended within four points of 2,000 for eight trading sessions before hitting a new all-time high of 2,007.71 Sept. 5.

     Equities pared earlier losses Thursday on speculation that Greece will reach an agreement on debt negotiations. Germany is leaving the door open to an agreement on Greece’s bailout funding as officials prepare their negotiating positions going into a meeting of finance ministers in Brussels Friday.

     Germany regards a proposal submitted by Greece to fellow euro-region governments as a basis for negotiations and doesn’t necessarily see a need for Greece to submit a fresh draft, according to a German government official who asked not to be named because the discussions are private.

     The S&P 500 erased a loss Wednesday on speculation that the Federal Reserve will keep rates lower for longer. Minutes from the Fed’s latest meeting showed some policy makers argued for keeping rates low for longer amid risks facing the economy.

     The Federal Open Market Committee pointed to a strengthening dollar, international flash points from Greece to Ukraine, and slow wage growth as weakening the case for the first rate rise since 2006, according to a record of the Jan. 27-28 meeting.

     The FOMC said after its last meeting it “can be patient” as it considers when to raise the benchmark interest rate, even as it described the labor market as “strong.” A report the following week showed payrolls rose more than forecast in January to cap the strongest three-month gain in 17 years.

    Fewer Americans than forecast filed applications for unemployment benefits last week, showing the labor market is making progress. Jobless claims fell by 21,000 to 283,000 in the week ended Feb. 14, from 304,000 in the prior period, a Labor Department report showed Thursday in Washington.

     The Conference Board’s index of leading economic indicators, a measure of the outlook for the next three to six months, climbed 0.2 percent in January, the New York-based group said Thursday. The median forecast of 49 economists surveyed by Bloomberg called for a 0.3 percent advance.

     The Chicago Board Options Exchange Volatility Index fell 1 percent to 15.29. The gauge of S&P 500 options prices known as the VIX fell 15 percent last week.

     Six of 10 main S&P 500 industries fell, with utilities sliding 1.1 percent as 10-year U.S. Treasury yields increased. Technology shares led gains, rallying 0.4 percent.

     Priceline climbed 8.5 percent, its biggest gain since September 2014, after the largest U.S. online travel agent reported quarterly revenue and profit that topped analysts’ estimates, buoyed by increased international bookings through its websites. Rival TripAdvisor Inc. rose 3.6 percent to its highest level since October, while Expedia Inc. rallied 2.4 percent to a two-month high.

     Facebook Inc. jumped 3.5 percent and Twitter Inc. advanced 1.8 percent, fueling a 1.6 percent rise in the Dow Jones Internet Composite Index.

     Airlines added to Wednesday’s gains on oil’s decline, led by Delta Air Lines Inc.’s 1.4 percent rise. American Airlines Group Inc. added 1 percent and JetBlue Airways Corp. advanced 1.1 percent.

     Oil prices fell 1.9 percent, paring declines of as much as 5.7 percent after a weekly government report showed U.S. crude inventories increased less than was reported by an industry group. The report showed stockpiles in the world’s biggest consumer still expanded to a record level.

     Energy companies in the S&P 500 lost 0.8 percent after dropping 1.5 percent Wednesday. The group had added 3.5 percent over the three sessions prior to Wednesday’s decline.

     EOG Resources Inc. fell 1.6 percent after the fastest- growing oil producer in the U.S.’s fourth-quarter profit missed estimates. The company plans to slash spending 40 percent and drill half the wells it did in 2014.

     Transocean Ltd. slid 2 percent as analysts said the owner of the world’s largest fleet of offshore rigs will have to do more than slash its dividend by 80 percent to weather the oil price crash.

     Wal-Mart fell 3.2 percent to its lowest close in two months after the retail giant said wage increases and spending on e- commerce initiatives will pressure operating income this year. Fourth-quarter profit exceeded analysts forecasts.

     Earnings for S&P 500 companies will probably drop in the next two quarters after a 4.2 percent increase in the last three months of 2014, according to analysts’ forecasts compiled by Bloomberg. More than 80 percent of S&P 500 companies have reported results for the final quarter of 2014, with 75 percent beating profit estimates, while 57 percent topped sales projections, data compiled by Bloomberg show.

 

Have a wonderful evening everyone.

 

Be magnificent!

Man has lost his inner perspective, he measures his greatness by his size

and not by his vital attachment to the infinite; he judges his activity by his own movement

and not by the serenity of perfection, not by the peace that exists in the starry vault,

in the rhythmic dance of incessant creation.

 

Rabindranath Tagore

As ever,

 

Carolann

 

I think a hero is any person really intent on making this a better place for all people.

                                                                             -Maya Angelou, 1928-2014

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:

Finally went to see the movie The Theory of Everything last night at the theatre.  Excellent acting for the character of Stephen Hawking.  Highly recommend the movie if you haven’t seen yet. We hope to see all the nominees before the Oscars on Sunday night.  There are just so many brilliant movies this year.

Ash Wednesday today – the first day of Lent, when Roman Catholics sprinkle the foreheads of penitents with the consecrated ashes of palms remaining from the previous Palm Sunday.  This custom is of uncertain date but is commonly held to have been introduced by Pope Gregory The Great.  The fast of Lent was introduced in the 4^th century, but it did not become fixed at 40 days until the early 7^th century, thus corresponding with Christ’s fast in the wilderness.  It usually fell in March and the Saxons called March lenctenmonath because in this month the days noticeably lengthen.

PHOTOS OF THE DAY

The American Falls is partially frozen during sub-freezing temperatures in Niagara Falls, Ontario, Canada. Temperatures dropped to 6 degrees Fahrenheit (-14 Celsius) on Tuesday. Lindsay DeDario/Reuters

A churchgoer holds a rosary during an Ash Wednesday Mass in Baltimore, Md. Ash Wednesday marks the start of Lent, a season of prayer and fasting for Christians before Easter. Patrick Semansky/AP

Market Closes for February 18^th, 2015     

Market Index	Close	Change
Dow Jones	18029.85	-17.73
		-0.10%
S&P 500	2099.68	-0.66   -0.03%
NASDAQ	4906.363	+7.096   +0.14%
TSX	15212.75	-71.86
		-0.47%

International Markets

Market Index	Close	Change
NIKKEI	18199.17	+212.08
		+1.18%
HANG SENG	24832.08	+47.20
		+0.19%
SENSEX	29320.26	+184.38
		+0.63%
FTSE 100	6898.08	-0.05
		—

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.472	1.507
CND. 30 Year Bond	2.113	2.130
U.S.    10 Year Bond	2.0800	2.1466
U.S. 30 Year Bond	2.7102	2.7339

Currencies

BOC Close	Today	Previous
Canadian $	0.80302	0.80715
US $	1.24529	1.23892
Euro Rate 1 Euro=		Inverse
Canadian $	1.41979	0.70433
US $	1.14012	0.87710

Commodities

Gold	Close	Previous
London Gold Fix	1206.00	1209.50
Oil	Close	Previous
WTI Crude Future	52.14	53.53

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, snapping the longest winning streak since November, as energy shares sank after crude retreated from a seven-week high ahead of the latest U.S. supply figures.

     Cenovus Energy Inc. dropped 4.9 percent after the company said it plans to sell C$1.5 billion ($1.2 billion) of shares to fund spending amid the slump in crude. Baytex Energy Corp. and Canadian Natural Resources Ltd. slipped at least 3.4 percent as oil prices reversed Tuesday’s gain. Sherritt International Corp. and First Quantum Minerals Ltd. rallied more than 3.6 percent as copper rose on speculation lower production will reduce oversupply.

     The Standard & Poor’s/TSX Composite Index fell 71.86 points, or 0.5 percent, to 15,212.75 at 4 p.m. in Toronto, halting a six-day rally that added 1.3 percent to the gauge. Trading volume was 11 percent below the 30-day average.

     Cenovus sank 4.9 percent for a seventh straight decline, the worst streak since October. The oil producer, Canada’s fifth-largest by market value, will sell 67.5 million shares at C$22.25 each.

     Canadian Natural Resources lost 3.4 percent, snapping a four-day rally, and Baytex slipped 5.6 percent as energy shares retreated 1.7 percent as a group, most in the S&P/TSX. Five of 10 industries declined.                         

     West Texas Intermediate crude dropped 2.6 percent, declining from its highest closing price in seven weeks in New York on estimates U.S. inventories advanced from a record level last week.

     U.S. stockpiles probably climbed 3 million barrels through Feb. 13, according to analysts’ estimates ahead of a report Thursday.

     Financial shares slid 0.9 percent as Toronto-Dominion Bank and Bank of Nova Scotia fell at least 1.4 percent. Canadian Western Bank, based in Edmonton, slumped 1.9 percent.

     Lumber producer Western Forest Products Inc. tumbled 4.2 percent after U.S. housing starts fell in January on declines in single-family projects as demand cooled.

     Gold rebounded from a six-week low after minutes from the Federal Reserve’s last meeting showed some officials argued for keeping interest rates near record lows for longer.

     Eldorado Gold Corp. climbed 6 percent and Iamgold Corp. surged 7 percent.

US

By Callie Bost and Joseph Ciolli

     (Bloomberg) — The Standard & Poor’s 500 Index erased a loss, after climbing to a record on Tuesday, as speculation that the Federal Reserve will keep rates lower for longer overshadowed a drop in energy shares.

     The S&P 500 slipped less than 1 point to 2,099.68 at 4 p.m. in New York, after losing as much as 0.4 percent. The Dow Jones Industrial Average lost 17.73, or 0.1 percent, to 18,029.85.  About 6.2 billion shares changed hands on U.S. exchanges, 11 percent below the three-month average.

     Equities pared losses as minutes from the Fed’s latest meeting showed some policy makers argued for keeping rates low for longer amid risks facing the economy.

     “The fact that they’re staying slow on moving up rates makes you think that the economy might not be as strong as we think it is,” Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview. “We still haven’t gotten to the point where a stronger economy and the Fed considering moving rates is an explicit positive for the market.”

     The  Federal Open Market Committee, while considering risks to be “nearly balanced,” pointed to a strengthening dollar, international flash points from Greece to Ukraine, and slow wage growth as weakening the case for the first rate rise since 2006, according to a record of the Jan. 27-28 meeting.

     The FOMC said after its last meeting it “can be patient” as it considers when to raise the benchmark interest rate, even as it described the labor market as “strong.” A report the following week showed payrolls rose more than forecast in January to cap the strongest three-month gain in 17 years.

     “It’s evident that they’re going to stick with the patient theme,” Jeff Sica, president and CEO of advisory firm Circle Squared Alternative Investments, which oversees $1.5 billion, said in a phone interview. “This was a status quo message. They’re playing their cards very close to the vest because of the vulnerability in Europe and the potential of this Greek crisis getting worse.”

     Speculation that a Greek debt impasse is easing helped the S&P 500 reach an all-time high yesterday, while European equities today rallied to their highest in seven years. A government official, speaking on condition of anonymity, said Greece will submit its request for a loan extension tomorrow.                     

     Data today showed factory production in the U.S. rose less than forecast in January, held back by a decline in motor vehicle assemblies and weaker demand for construction materials.

     A separate report on housing starts showed builders broke ground on fewer U.S. residential construction projects in January as demand for single-family homes cooled from an almost seven-year high. Wholesale prices in the U.S. fell more than forecast in January, led by plunging energy costs and signaling inflation remains tame even as the economy is expanding.

     The route for stocks this year has been uneven — a 5.3 percent rally in February after the worst month in a year in January has evened out to a 2 percent gain for 2015, trailing most developed markets.

     Energy companies in the S&P 500 dropped 1.5 percent, led by Diamond Offshore Drilling Inc.’s 7.5 percent retreat, as oil prices resumed a decline after three days of gains. West Texas Intermediate slipped 2.6 percent. Crude lost more than 3 percent Tuesday before rebounding to a 1.4 percent gain.

     Exxon Mobil Corp. declined 2.2 percent after Warren Buffett’s Berkshire Hathaway Inc. exited a $3.7 billion investment in the company.

     Some big hedge fund managers have cut their holdings in U.S. stocks in the fourth quarter and shifted assets globally as the slide in oil prices hammered energy holdings.

     Greenlight Capital’s David Einhorn said he’s scaled back bets on stock gains after markets climbed and as a stronger dollar threatens to limit earnings of U.S. companies from operations overseas.

     David Tepper’s Appaloosa Management had $2.74 billion less in U.S. stocks in the fourth quarter, a 40 percent drop from the previous quarter. Soros Fund Management, the family office of billionaire hedge fund manager George Soros, moved about $2 billion into companies in Asia and Europe, according to a person familiar with the strategy.

     Some managers, such as Leon Cooperman, 71, remain bullish on the U.S., while predicting bigger gains elsewhere.

     “We expect the European and Japanese equity markets to outperform the U.S. in the coming year,” Cooperman, who runs Omega Advisors, wrote in an investor letter last month.                        

     The Chicago Board Options Exchange Volatility Index fell 2.2 percent to 15.45. The gauge, know as the VIX, fell 15 percent last week.

     Fossil Group Inc. tumbled 16 percent. The maker of watches, handbags and other accessories posted fourth-quarter sales and an annual forecast that trailed analysts’ estimates. Earnings this year won’t exceed $6.05, the company said. Analysts estimated $7.52.

     Bank stocks fell, with the KBW Bank Index’s 1.4 percent drop marking its biggest decline this month, after Fed minutes signaled interest rates will remain low for longer. Bank of America Corp. slid 2 percent and Comerica Inc. lost 2.3 percent.

     Boston Scientific jumped 12 percent. The company said it will pay $600 million to Johnson & Johnson to settle a lawsuit over its $27.5 billion acquisition of Guidant Corp. almost a decade ago.

     Deere & Co. climbed 3.2 percent after Berkshire Hathaway more than doubled its stake in the company in the fourth quarter, to 17.1 million shares.

     Utility companies were the S&P 500’s best performers Wednesday, rising 2.4 percent after falling 4.5 percent over the previous four sessions.
 

Have a wonderful evening everyone.

 

Be magnificent!

Does  a flower, full of beauty, light and loveliness say, “I am giving, helping, serving?”

It is!  And because it is not trying to do anything it covers the earth.

Krishnamurti

As ever,

 

Carolann

 

It’s not what you look at that matters, it’s what you see.

                             -Henry David Thoreau, 1817-1862

 

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:

It is Mardi Gras today – Fat Tuesday from the French; also known as Shrove Tuesday  and also known as Pancake Day.  Pancakes are traditionally cooked and eaten on this day before the long period of Lenten fasting begins tomorrow on Ash Wednesday.  And so, it is the last day of the Lent Carnival in France and Lent carnivals all over the world such as Brazil and New Orleans.  In Paris, a fat ox, crowned with a fillet, used to be paraded through the streets.  It was accompanied by mock priests and a band of tin instruments in imitation of a Roman sacrificial procession.

Some towns in England, e.g., Olney, Buckinghamshire and at Westminster School, Pancake Day races and Scrimmages still persist from olden times.

The ingredients in pancakes are symbolic:  eggs, the symbols of creation, flour for the staff of life, salt for wholesomeness and milk for purity.

PHOTOS OF THE DAY

Children compete in a youngsters pancake race in Olney, Buckinghamshire, England, Tuesday. A pancake race has been run in the town since 1445 to mark the start of Lent. Kirsty Wigglesworth/AP

The aurora borealis, or northern lights, shine over Dunstanburgh Castle in Northumberland, England, Tuesday. Owen Humphreys/PA/AP

Market Closes for February 17^th, 2015     

Market Index	Close	Change
Dow Jones	18047.58	+28.23
		+0.16
S&P 500	2100.34	+3.35   +0.16
NASDAQ	4899.266	+5.430   +0.11%
TSX	15284.61	+19.80
		+0.13%

International Markets

Market Index	Close	Change
NIKKEI	17987.09	-17.68
		-0.10%
HANG SENG	24784.88	+58.35
		+0.24%
SENSEX	29135.88	+40.95
		+0.14%
FTSE 100	6898.13	+41.08
		+0.60%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.507	1.432
CND. 30 Year Bond	2.130	2.070
U.S.    10 Year Bond	2.1466	2.0504
U.S. 30 Year Bond	2.7339	2.6478

Currencies

BOC Close	Today	Previous
Canadian $	0.80715	0.80200
US $	1.23892	1.24688
Euro Rate 1 Euro=		Inverse
Canadian $	1.41362	0.70741
US $	1.14101	0.87642

Commodities

Gold	Close	Previous
London Gold Fix	1209.50	1229.25
Oil	Close	Previous
WTI Crude Future	53.53	52.78

Market Commentary:

Canada

By Michelle F. Davis

     (Bloomberg) — Canadian stocks advanced for a sixth session, extending a five-month high, as a rally among consumer shares amid corporate earnings offset a drop in raw-materials companies.

     Restaurant Brands International Inc., owner of the Tim Hortons chain, gained 8.1 percent to a record after same-store sales increased last quarter. Fairfax Financial Holdings Ltd. jumped 7.8 percent after it agreed to buy Brit Plc for $1.88 billion in the latest round of industry consolidation. Goldcorp Inc. fell 3.9 percent as gold slipped for the first time in three sessions.

     The Standard & Poor’s/TSX Composite Index rose 19.80 points, or 0.1 percent, to 15,284.61 at the close in Toronto. The benchmark Canadian equity gauge rose 1.2 percent last week and has climbed 4.5 percent this year. Trading volume was 21 percent below the 30-day average. Canadian equity markets were closed Monday for a holiday.

     Benchmark equity gauges in Europe and the U.S. finished little changed amid ongoing debt discussions between Greece and its creditors. Greece’s government may request an extension of its loan agreement for six months, according to a person familiar with the matter, a step that could ease a standoff with creditors over the country’s future financing.

     Discussions aimed at finding common ground ended on Monday without breaking an impasse. With no deal, the government could run out of money by March and be forced to choose between breaking election promises or abandoning the euro.

     Raw-materials shares led declines in the Toronto index, retreating 2 percent as gold lost 1.5 percent to a six-week low and silver plunged 5.3 percent. The precious metals tumbled on speculation Chinese demand will fall during the Lunar New Year holiday that will close markets for five days starting Wednesday.

     Energy companies slid as West Texas Intermediate for March delivery gained 1.4 percent, paring an earlier loss of more than 3.7 percent.

     Rona Inc. paced gains among consumer shares, advancing 7.8 percent, after the company posted fourth-quarter earnings that beat analysts’ estimates. Consumer-discretionary and consumer- staples shares gained at least 1.2 percent to pace gains in the S&P/TSX.

     Restaurant Brands, the newly formed parent company of Burger King and Tim Hortons, added 8.1 percent to the highest on record after posting a 3 percent same-store sales gain for its burger chain last quarter and 4.1 percent growth at its recently acquired coffee-and-doughnuts business.

     Fairfax Financial Holdings rose the most since 2008 after it agreed to buy specialty U.K. underwriter Brit, becoming the latest firm to strengthen its position amid increasing competition from hedge funds and others to take on insurance risks.

US

By Callie Bost

     (Bloomberg) — The Standard & Poor’s 500 Index reached a record for a second day on speculation that the Greek debt impasse is easing while oil prices erased earlier declines.

     Medtronic Plc rose 3.7 percent after its quarterly profit beat analysts’ estimates, helping lift S&P 500 health-care companies 0.6 percent. West Texas Intermediate crude rallied 1.4 percent, and energy stocks were little changed after earlier losing more than 1 percent.

     The S&P 500 climbed 0.2 percent to 2,100.34 at 4 p.m. in New York. The Dow Jones Industrial Average added 28.23 points, or 0.2 percent, to 18,047.58. The Russell 2000 Index advanced 0.2 percent after reaching a record Friday. About 6.3 billion shares changed hands on U.S. exchanges, 8.4 percent below the three-month average.

     “We’ve had a pretty sizable rally here,” Randy Frederick, managing director of trading and derivatives at Charles Schwab Corp., said by phone. His firm oversees $2.45 trillion in client assets. “Oil prices were heading lower earlier and now they’ve turned around. The developments in Greece are big, but I’d say this is more oil.”

     Greece’s government may request an extension of its loan agreement for six months, according to a person familiar with the matter, a step that could ease a standoff with creditors over the country’s future financing.

     Discussions aimed at finding common ground between Greece and its creditors ended on Monday without breaking an impasse. With no deal, the government could run out of money by March and be forced to choose between breaking election promises or abandoning the euro.

     The S&P 500 rose to an all-time high last week as technology shares rallied and oil rebounded to end stocks’ longest dip since 2013. Signs of easing tension between Greece and European leaders also helped push U.S. equities higher.                         

     Crude prices jumped 1.4 percent after earlier falling 3.7 percent. Noble Corp. rose 5.1 percent, after an earlier 1.5 percent drop, and Diamond Offshore Drilling Inc. added 4.9 percent, erasing a 2.9 percent retreat.

     “One day oil goes up $1 and risk assets rally, the next day oil goes down $1 and risk assets sell off,” Mark Luschini, chief investment strategist in Philadelphia at Janney Capital Management LLC, which oversees about $68 billion in assets, said by phone. “I suspect this will be the case until the market can figure out that supply has corrected to demand levels.”

     Utility companies in the benchmark index fell 0.1 percent Tuesday after earlier rising 0.9 percent. The group fell in five of the prior six sessions and is down 7 percent in February.   Economic data Tuesday showed manufacturing in the New York area grew at a slower pace in February. The Federal Reserve Bank of New York’s general economic index fell to 7.78, below economist estimates for a level of 8. Positive readings signal expansion in New York, northern New Jersey and southern Connecticut.

     The route for stocks this year has been uneven — the S&P 500 has rallied 5.3 percent in February, heading for the best monthly performance since October 2011, after losing 3.1 percent in January for its worst month in a year. That evens out to a 2 percent gain for 2015, trailing most developed markets.

     The Chicago Board Options Exchange Volatility Index climbed 7.6 percent to 15.8. The gauge, known as the VIX, fell 15 percent last week.

     The S&P 500 has gone more than three years without a retreat of 10 percent or more, known as a correction. Still, a strong dollar and a plunge in oil prices that threaten investment and earnings growth have tested the resilience of investors as the bull market nears its seventh year.

     Earnings for S&P 500 companies rose 4.2 percent last quarter, and will probably drop in the next two periods, according to analysts’ forecasts compiled by Bloomberg. More than three-quarters of the S&P 500 companies have reported results for the final three months of 2014, with 76 percent beating profit estimates, data compiled by Bloomberg show.

     Wal-Mart Stores Inc., Noble Energy Inc., and Discovery Communications Inc. are among companies releasing financial results this week.

     Waste Management Inc. jumped 5.2 percent to the highest level since 1999. The company reported fourth-quarter adjusted earnings that beat analysts’ expectations and forecast a higher- than-estimated adjusted profit this year.

     Medtronic climbed 3.7 percent, leading health-care stocks higher. The world’s biggest maker of heart-rhythm devices reported profit that beat analysts’ estimates, buoyed by the introduction of new products. Tenet Healthcare Corp. advanced 2.3 percent, and Biogen Idec Inc. added 1.6 percent.

     Goodyear Tire & Rubber Co. rose 2.7 percent after its fourth-quarter profit exceeded forecasts.                      

     Starwood Hotels & Resorts Worldwide Inc. added 2.7 percent after the owner of the Sheraton and W brands said Chief Executive Officer Frits van Paasschen resigned by mutual consent with the board of directors.

     Cablevision Systems Corp. dropped 4.1 percent for the biggest decline in the S&P 500. UBS Securities LLC analyst John Hodulik downgraded the shares to sell from neutral, citing concerns about the potential for more aggressive competition from Verizon Communications Inc., and lower odds that the company will get acquired.
 

Have a wonderful evening everyone.

 

Be magnificent!

Beauty lies in the total abandonment of the observer and the observed,

and there can be self-abandonment only when there is total austerity.

There is no ladder to climb; there is only the first step

and the first step is the everlasting step.

Krishnamurti

As ever,
 
 

Discipline is the bridge between goals and accomplishment.

                                            -John Rohn, 1930-2009

 

Carolann

 

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:

Diana Krall has a new CD that Gary picked up at Starbuck’s on Saturday morning.  It is fantastic – I think we played it 4 times over the weekend – it’s that good.  Wallflower is produced by David Foster and on it, Krall records tracks from the ‘60s, ‘70s, ‘80s  and today, classics including California Dreamin’, Desperado, Alone Again (Naturally), Don’t Dream It’s Over and I’m Not In Love.   She only sings, Foster plays all the piano on every track. 

PHOTOS OF THE DAY

A couple walks hand-in-hand through the snow in Boston’s Back Bay neighborhood during a winter blizzard on Feb. 15. The Northeast faced yet another major winter storm during the weekend, with blizzard conditions in six states’ coastal regions, much of which are already buried under record-setting snow, forecasters said. Brian Snyder/Reuters

Ethnic Intha fishermen with their legs wrapped around oars pull up nets in Inle lake, northeastern Shan state, Myanmar, Sunday. Intha fisherman are known for a unique style of rowing with one leg wrapped around a single oar instead of using their hands. Gemunu Amarasinghe/AP

Market Closes for February 16^th, 2015     

Market Index	Close	Change
Dow Jones	18019.35	Closed
S&P 500	2096.99	Closed
NASDAQ	4893.836	Closed
TSX	15264.81	Closed

International Markets

Market Index	Close	Change
NIKKEI	18004.77	+91.41
		+0.51%
HANG SENG	24726.53	+43.99
		+0.18%
SENSEX	29135.88	+40.95
		+0.14%
FTSE 100	6857.05	-16.47
		-0.24%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	Closed	1.432
CND. 30 Year Bond	Closed	2.070
U.S.    10 Year Bond	Closed	2.0504
U.S. 30 Year Bond	Closed	2.6478

Currencies

BOC Close	Today	Previous
Canadian $	0.80200	0.80331
US $	1.24688	1.24485
Euro Rate 1 Euro=		Inverse
Canadian $	1.41461	0.70691
US $	1.13452	0.88143

Commodities

Gold	Close	Previous
London Gold Fix	1229.25	1232.50
Oil	Close	Previous
WTI Crude Future	52.78	51.21

Market Commentary:

Canada

Markets Closed for Family Day.
 

US

Markets Closed for President’s Day.
 

 
Have a wonderful evening everyone.

 

Be magnificent!

 

What does it matter if we do not understand the exact meaning of the grand harmony?

Is it not like the bow player who touches a string and at once releases every resonance?  This is the language of beauty,

this is the caress that comes from the heart of the world and goes straight to our hearts.

 

Rabindranath Tagore

As ever,

 

Carolann

 

I’d rather regret the things I’ve done than regret the things I haven’t done.

                                                                        -Lucille Ball, 1911-1989

 

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