Month: May 2015

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Visitors enjoy the newly-opened One World Observatory, which takes up parts of the 100th, 101st and 102nd floors of the building, in New York Friday. Lucas Jackson/Reuters

A male emperor tamarin (Saguinus imperator) carries a four-week-old infant at Schoenbrunn Zoo in Vienna, Austria, Friday. The infant was born at the zoo on April 26 and measures 5 cm (2 inches) without its tail. Heinz-Peter Bader/Reuters

 

Market Closes for May 29^th, 2015

Market Index	Close	Change
Dow Jones	18010.68	-115.44   -0.64%
S&P 500	2109.23	-11.56   -0.55%
NASDAQ	5070.027	-27.948   -0.55%
TSX	15032.65	-74.35
		-0.49%

International Markets

Market Index	Close	Change
NIKKEI	20563.15	+11.69
		+0.06%
HANG SENG	27424.19	-30.12
		-0.11%
SENSEX	27828.44	+321.73
		+1.17%
FTSE 100	6984.43	-56.49
		-0.80%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.624	1.673
CND. 30 Year Bond	2.210	2.257
U.S.    10 Year Bond	2.1267	2.1355
U.S. 30 Year Bond	2.8849	2.8896

Currencies

BOC Close	Today	Previous
Canadian $	0.80300	0.80421
US $	1.24533	1.24345
Euro Rate 1 Euro=		Inverse
Canadian $	1.36897	0.73048
US $	1.09929	0.90968

Commodities

Gold	Close	Previous
London Gold Fix	1191.40	1185.00
Oil	Close	Previous
WTI Crude Future	60.45	57.68

Market Commentary:

Canada

By Joseph Ciolli

     (Bloomberg) — Canadian stocks fell, extending a monthly loss, as data showed the biggest contraction in the nation’s economy since 2009.

     Health-care stocks fell amid a 1.3 percent slide for Valeant Pharmaceuticals International Inc. Canadian Pacific Railway Ltd. and Canadian National Railway Co. decreased for a second day, losing more than 1.4 percent. Bank of Nova Scotia rose 1 percent after posting second-quarter profit that beat analysts’ estimates.

     The Standard & Poor’s/TSX Composite Index fell 116.63 points, or 0.8 percent, to 14,990.37 at 10:58 a.m. in Toronto. The benchmark Canadian equity gauge has dropped 1.5 percent in May, trimming its gain for the year to 2.5 percent.

     Canada’s gross domestic product fell at a 0.6 percent annualized pace in the first quarter, as collapsing energy prices prompted a plunge in business investment. The drop exceeded all 22 economist forecasts in a Bloomberg News survey. Statistics Canada also revised its fourth-quarter growth estimate to 2.2 percent, from 2.4 percent previously.

     Data also showed the U.S. economy shrank in the quarter, held back by harsh winter weather, a strong dollar and delays at ports. GDP contracted at a 0.7 percent annualized rate, revised from a previously reported 0.2 percent gain.

     All 10 industries in the S&P/TSX slipped on trading volume 16 percent lower than the 30-day average. Industrial and consumer-staples companies dropped the most, tumbling more than 1 percent. Financial companies, which account for about one- third of the index by weighting, fell 0.8 percent.

     Bank of Nova Scotia added 1 percent. Earnings for Canada’s third-largest lender by assets beat forecasts as gains in capital markets helped counter a dip in international banking.

     Scotiabank is the last of Canada’s biggest lenders to report quarterly results, with all six beating estimates on net income. Bank of Canada, Canadian Imperial Bank of Commerce and National Bank of Canada posted higher profit fueled by gains in capital markets, while Toronto-Dominion Bank and Bank of Montreal saw profits dip from a year earlier as restructuring costs crimped results.

     While Valeant declined 1.3 percent, the company again surpassed Toronto-Dominion’s position as Canada’s second-largest stock as the two jockey for position behind leader Royal Bank of Canada. Valeant, the top performer in Canada’s benchmark equity gauge this year, briefly topped Toronto-Dominion’s market capitalization yesterday before slipping back to the No. 3 spot at the market’s close.

     Toronto-Dominion slumped 1.9 percent today.

     Mining companies advanced, with New Gold Inc. and Kinross Gold Corp. increasing more than 2.3 percent. The S&P/TSX Gold Index added 0.5 percent, extending its three-day gain to 2.4 percent.

US

By Jennifer Kaplan

     (Bloomberg) — Not so bad, considering. A month that began with investors blindsided by a global rout in sovereign debt and a selloff in high-flying equities ended with stocks near all-time highs.

     The Standard & Poor’s 500 Index climbed 1.1 percent in May, historically the second-worst month for American equities. Treasuries capped the period with their first weekly gain since April 17, while the dollar rebounded 2.3 percent in May after halting a string of nine straight advances.

     Stocks rose as data indicated the economy was settling into a moderate pace of growth after a first-quarter slump, with the Federal Reserve signaling any increase in borrowing costs would be shallow and gradual. Equities also got a boost from a surprise gain in profits and a record $214 billion of announced acquisitions.

     “We were just a little bit too pessimistic,” Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management LLC, said in a phone interview. Voya oversees $215 billion. “That’s why the market has been grinding higher. There was a lot of doom and gloom, especially in the first quarter.”

     The S&P 500 reached a record May 21, while the Dow Jones Industrial Average and the Nasdaq Composite Index also set fresh highs, even as equities bounced in the narrowest trading range in eight months on the weakest volume this year.

     Equities churned higher as reports from hiring to housing indicated the economy was recovering from a first-quarter slowdown, though not fast enough to warrant higher rates any time soon. Meanwhile, S&P 500 companies, which were forecast at the start of May to deliver the first decline in quarterly earnings since 2009, managed to eke out a profit.

     Minutes of the central bank’s April meeting signaled that an interest-rate boost in June was unlikely, and Fed Chair Janet Yellen separately said that while she anticipates raising borrowing costs this year, any further increases would be gradual.

     The Fed statements and weaker-than-estimated readings on inflation helped bond markets stabilize after a three-week rout had erased more than $400 billion from fixed-income markets.

     Concern about the strength of the economy pressured stocks on the last day of the month, with the S&P 500 slipping 0.9 percent, as data raised concern the slowdown persisted past the first quarter. Anxiety over the standoff in Greece’s debt crisis also reignited.

     “I think in the market there is kind of a continual theme here of the market struggling to be able to sustain anything either up or down,” said Jim Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management Inc., which oversees $347 billion. “It’s been a very narrow range here since last fall. It has broken out to marginal new highs along the way, but it hasn’t really been able to sustain an advance by doing so.”

     Volatility in equities eased in May, with the Chicago Board Options Exchange Volatility Index sliding 4.9 percent. The gauge known as the VIX fell to its lowest level this year on May 21.

     The S&P 500 delivered its best month since February in a period that has seen the index drop 0.1 percent on average in data going back to 1928, the second-worst performance after September.

     Eight of the index’s main groups advanced, led by gains of at least 2 percent among technology and health-care shares.

     Tech was at the center of record acquisition activity, according to data compiled by Bloomberg. Broadcom Corp. rallied 29 percent, the most in the S&P 500, after agreeing to be bought for $37 billion by chipmaker Avago Technologies Ltd. Altera Corp. soared 17 percent on reports it is close to being purchased by Intel Corp. for about $15 billion.

     Time Warner Cable Inc. jumped 16 percent after Charter Communications Inc. struck a $79 billion deal to buy the company.

     Transportation companies dropped the most of 24 industry groups in the S&P 500 Index this month as airlines entered a bear market and railroads fell. The Dow Jones Transportation Average lost 3.4 percent to end the month at the lowest level since October.

 

Have a wonderful weekend everyone!

Be magnificent!

 

“Spread love everywhere you go. Let no one ever come to you without leaving happier.” Mother Teresa

As ever,

 

Karen

 

“Challenges are what make life interesting and overcoming them is what makes life meaningful.” – Joshua J. Marine

 

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

South American tapir Ivana walks with her newly born son at their enclosure at the Zoo in Prague, Czech Republic, Thursday. Petr David Josek/AP

Simone Arrigoni of Italy attempts to set an apnea diving record, while being pushed by a dolphin, in Torvaianica near Rome, Italy, Thursday.Tony Gentile/Reuters

Market Closes for May 28^th, 2015

Market Index	Close	Change
Dow Jones	18126.12	-36.87   -0.20%
S&P 500	2120.79	-2.69   -0.13%
NASDAQ	5097.977	-8.617   -0.17%
TSX	15107.00	-3.47
		-0.02%

International Markets

Market Index	Close	Change
NIKKEI	20551.46	+78.88
		+0.39%
HANG SENG	27454.31	-626.90
		-2.23%
SENSEX	27506.71	-57.95
		-0.21%
FTSE 100	7040.92	+7.59
		+0.11%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.673	1.669
CND. 30 Year Bond	2.257	2.250
U.S.    10 Year Bond	2.1355	2.1302
U.S. 30 Year Bond	2.8896	2.8726

Currencies

BOC Close	Today	Previous
Canadian $	0.80421	0.80260
US $	1.24345	1.24595
Euro Rate 1 Euro=		Inverse
Canadian $	1.36118	0.73466
US $	1.09468	0.91351

Commodities

Gold	Close	Previous
London Gold Fix	1185.00	1185.85
Oil	Close	Previous
WTI Crude Future	57.68	57.51

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little-changed, headed for a monthly loss, railways tumbled and investors weighed earnings from the nation’s largest lenders.

     Toronto-Dominion Bank slumped 1.1 percent after net income declined. Canadian Imperial Bank of Commerce added 0.6 percent after raising its dividend. Canadian Pacific Railway Ltd. lost 4.1 percent as North American rail traffic declined.

     The Standard & Poor’s/TSX Composite Index fell 3.49 points, or less than 0.1 percent, to 15,106.98 at 4 p.m. in Toronto, paring an earlier slide of 0.7 percent in afternoon trading. The benchmark Canadian equity gauge has dropped 0.8 percent in May, trimming its gain for the year to 3.2 percent.

     Five of 10 industries in the S&P/TSX slipped on trading volume 16 percent lower than the 30-day average. Industrial companies dropped the most, tumbling 1.7 percent as a group.

     Canadian Pacific Railway sank 4.1 percent, the most since January, and Canadian National Railway Co. declined 1.7 percent. Total rail traffic in North America decreased 3 percent in the week ended May 23, according to a report from Talon Custer and Lee Klaskow, Bloomberg Intelligence analysts.

     Valeant Pharmaceuticals International Inc., the nation’s largest drugmaker, surged as much as 3.4 percent to a market capitalization of C$104.3 billion. That briefly put the company ahead of Toronto-Dominion’s C$104.1 billion valuation and into second place on the TSX.

     The two companies closed at near-identical valuations, with Toronto-Dominion clinging to a C$17 million lead. The lender dropped 1.1 percent after fiscal second-quarter profit fell 6.5 percent as the lender took a C$228 million ($183 million) restructuring charge.

     Royal Bank, the biggest company on the TSX, rose 0.2 percent. The nation’s largest lender said fiscal second-quarter profit rose 14 percent on gains in investment banking. Wealth management earnings fell 3 percent after taking C$29 million of restructuring costs and provisions tied to exiting some international markets.

US

By Jeremy Herron and Stephen Kirkland

     (Bloomberg) — U.S. stocks slipped from near records before data Friday on economic growth, while the dollar ended little changed after a Japanese official warned against the rapid depreciation of the yen. European equities fell as concern mounted that Greece may not reach a deal with creditors.

     The Standard & Poor’s 500 Index lost 0.1 percent at 4 p.m. in New York, trimming a loss of 0.5 percent in afternoon trading. The gauge has advanced 1.7 percent in May. The Bloomberg Dollar Spot Index was little changed, with the greenback near a 12-year high versus the yen. The Stoxx Europe 600 Index dropped 0.5 percent, while the Shanghai Composite Index’s 6.5 percent slide was its worst since January. Natural gas tumbled the most since March.

     The yen’s drop in recent days was “rough,” and the government will continue to carefully monitor movements in the currency, Finance Minister Taro Aso said at a Group of Seven meeting in Dresden. The Bloomberg dollar gauge has rallied 2.8 percent since May 18 on signs the Federal Reserve is preparing to raise interest rates this year. A report Friday may show the U.S. economy contracted in the first quarter.

     “When we take a look at it it’s kind of the same movie we’ve seen over and over again,” Karyn Cavanaugh, the New York- based senior market strategist at Voya Investment Management LLC, said in a phone interview. Voya oversees $215 billion. “We’re worried about what’s going on with the Fed, we’re worried about what’s going on with Greece. Then there’s always the strong dollar.”

     The S&P 500 closed 0.3 percent off its record on Wednesday, rebounding from the biggest drop for U.S. stocks in three weeks after Greece said it was nearing a deal on debt relief.

     The crisis roiled markets again Thursday after French and German delegates at the Group of Seven meeting pushed back against the claims that an agreement was near. The concern that Greece may not win more aid before a loan payment due next week sent European stocks lower.

     “We can expect sentiment to swing back and forth until we really get to crunch time on Greece, and I don’t think we’ll get a deal until the very last day,” Allan von Mehren, chief analyst at Danske Bank A/S, said by phone from Copenhagen. “Markets will be quite volatile as everyone tries to read the signals.”

     Failure to reach a deal may drive yields higher on other euro-area government bonds, the European Central Bank said. The yield on 10-year Greek bonds was little changed, while Spain’s 10-year bond yield rose three basis points to 1.84 percent and Portugal’s climbed five basis points to 2.54 percent.

     The dollar was little changed after rising seven of the previous eight sessions as growing speculation the U.S. will raise interest rates widened the policy divergence with Japan.

     Data Thursday strengthened the case for higher interest rates after economic growth slowed in the first quarter. More Americans than forecast signed contracts to purchase previously owned U.S. homes in April, indicating a pickup in the housing market. The jobless claims report comes as data over the last week from housing starts to leading indicators have topped forecasts.

     Treasury seven-year notes rallied after a $29 billion auction of the securities as investors were attracted by the highest auction yield since December. Ten-year Treasury yields slipped were little changed at 2.13 percent.

     The MSCI Emerging Markets Index lost 0.9 percent, with a fourth day of losses leaving the guage at the lowest level since April 7. Brazil’s equity benchmark declined as lenders slid after data showed faster-than-forecast inflation. Qatar’s benchmark tumbled the most this year as the country’s soccer World Cup plans came under scrutiny.

     A gauge of developing-nation currencies slid for a ninth day, the longest streak of declines in more than two months.

     Oil rose after crude stockpiles dropped a fourth week and gasoline inventories slipped to the lowest level this year. West Texas Intermediate crude added 0.3 percent to settle at $57.68 a barrel in New York, while Brent added 0.8 percent to end at $62.58 a barrel in London.

     U.S. natural gas futures tumbled 5 percent to settle at a four-week low after U.S. inventories rose faster than predicted last week.

  

Have a wonderful evening everyone.

Be magnificent!

 

“Strength does not come from physical capacity. It comes from an indomitable will.”

Mahatma Gandhi

As ever,

 

Karen

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”

John Quincy Adams

  

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

Britain’s Queen Elizabeth is accompanied by Prince Philip as they proceed through the Royal Gallery before the State Opening of Parliament in the House of Lords, at the Palace of Westminster in London, Wednesday. Geoff Pugh/Reuters

Two snow leopard cubs are presented at the wildlife park Lueneburger Heide, in Nindorf-Hanstedt, Germany, Wednesday. The cubs were born on May 5. Philipp Schulze/dpa/AP

Market Closes for May 27^th, 2015

Market Index	Close	Change
Dow Jones	18162.99	+121.45   +0.67%
S&P 500	2123.49	+19.29   +0.92%
NASDAQ	5106.594	+73.842   +1.47%
TSX	15107.21	+56.40
		+0.37%

International Markets

Market Index	Close	Change
NIKKEI	20472.58	+35.10
		+0.17%
HANG SENG	28081.21	-168.65
		-0.60%
SENSEX	27564.66	+33.25
		+0.12%
FTSE 100	7033.33	+84.34
		+1.21%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.669	1.702
CND. 30 Year Bond	2.250	2.284
U.S.    10 Year Bond	2.1302	2.1355
U.S. 30 Year Bond	2.8726	2.8934

Currencies

BOC Close	Today	Previous
Canadian $	0.80260	0.80436
US $	1.24595	1.24322
Euro Rate 1 Euro=		Inverse
Canadian $	1.35880	0.73594
US $	1.09057	0.91686

Commodities

Gold	Close	Previous
London Gold Fix	1185.85	1185.40
Oil	Close	Previous
WTI Crude Future	57.51	58.03

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, after slumping the most in almost three weeks yesterday, as Air Canada and financial companies advanced while the Bank of Canada kept its key interest rate unchanged for a third meeting.

     Air Canada soared 8 percent after announcing the airliner’s first share buyback program since 2011. Bank of Montreal, Canada’s fourth-largest lender, rose 0.3 percent after adjusted profit topped analysts’ estimates. Legacy Oil + Gas Inc. slumped 8.2 percent after Crescent Point Energy Corp. agreed to buy the company.

     The Standard & Poor’s/TSX Composite Index rose 59.66 points, or 0.4 percent, to 15,110.47 at 4 p.m. in Toronto. The benchmark equity gauge declined 0.9 percent yesterday for a third straight day of losses.

     Eight of 10 industries in the S&P/TSX advanced on trading volume 15 percent lower than the 30-day average today. Financial shares added 0.4 percent, while shares in industrial companies increased 1.4 percent.

     Air Canada surged to the highest level since 2007. The airline opted out of a pension agreement with the federal government that will create potential savings of about C$310 million in the next two years, paving the way for Air Canada to buy back as many as 10 million shares.

     The Bank of Canada maintained its benchmark rate at 0.75 percent and said the economy is recovering from a drop in oil prices. Economists surveyed by Bloomberg unanimously forecast no change to the central bank’s 0.75 percent benchmark rate.

     Bank of Montreal rebounded from an earlier loss as the company raised its dividend 2.5 percent. Net income declined 7.2 percent after taking a restructuring charge of C$106 million to “drive operational efficiencies.”

     Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank report results Thursday, followed by Bank of Nova Scotia on Friday.

     Valeant Pharmaceuticals International Inc. increased 1.9 percent, the fourth gain in five days as the company extends an all-time high.

     Energy shares declined 0.3 percent as oil dropped 52 cents in New York to $57.51 a barrel.

US

By Callie Bost and Joseph Ciolli

     (Bloomberg) — The calmest markets in six months and the best run of economic data this year spelled trouble for U.S. stocks after a three-day break.

     The combination ignited yesterday, with the Standard & Poor’s 500 Index falling more than 1 percent as a benchmark gauge for equity turbulence surged the most since January. The Chicago Board Options Exchange Volatility Index jumped 16 percent to 14.06.

     Options traders were caught leaning the wrong way as speculation the Federal Reserve will raise interest rates shook investors returning from Memorial Day. For the VIX, it was only the second move of more than 15 percent all year — compared with four in December alone.

     “The market was not realizing any significant volatility over the last couple of weeks, particularly to the downside,” said Dan Deming, a managing director at Chicago-based Equity Armor Investments. “Any type of significant selloff was going to have more of a slingshot effect on the VIX.”

     The VIX’s violent reaction may have reflected a repricing in the index after the long weekend, according to Deming. The selloff followed the slowest week this year for domestic equities, which fluctuated in the smallest range in six months over the five days en route to a 0.2 percent gain.

     On Thursday, the VIX closed at its lowest level of 2015 as the S&P 500 reached an all-time high. In the five-day period, the VIX’s closing level averaged 12.54, its lowest for a week since one ending Sept. 5.

     U.S. stocks fell the most in three weeks as comments Friday from Fed Chair Janet Yellen that borrowing costs would be boosted this year were followed by data adding to evidence of a recovery in American economic growth after a first-quarter slowdown.

 

     Reports on Tuesday showed orders for capital equipment in the U.S. rose for a second month, sales of new homes climbed more than forecast and a measure of regional manufacturing exceeded estimates.

     Over the last week, economic data from housing starts to leading indicators have strengthened the case for higher interest rates, beating market forecasts by a large-enough margin to push the Citigroup Economic Surprise Index for the U.S. higher by the fastest rate all year.

     Adding to pressure on equities is anxiety over Europe, where there has been little convergence in talks between Greece and its creditors as time runs out to secure a deal before the country needs to make payments to the International Monetary Fund in early June.

     “There’s been a lot of chatter into the end of the month with the Fed and Greece,” Deming said. “The market kept drifting higher but the feeling was ‘boy, one misstep and this could backfire.’”

     Tuesday’s decline pared the S&P 500’s advance for May to 0.9 percent. The gauge has climbed 2.2 percent this year, while the VIX has dropped 27 percent for 2015.

     Hedging yesterday was concentrated in near-term options. The CBOE S&P 500 Short Term Volatility Index, a measure of nine- day hedging costs on the stocks gauge, soared 39 percent, its biggest daily jump since December. Four of the five most-traded S&P 500 contracts were puts expiring May 29, with strike prices ranging from 2,030 to 2,100.

     The slide in U.S. equities was a godsend for traders in VIX options expecting more turbulence. At the end of last week, they owned about 3.5 contracts wagering on upside in the volatility gauge for every option predicting downside, the highest ratio of calls to puts since October.

     The VIX fell 0.1 percent to 14.04 at 9:43 a.m. in New York as the S&P 500 rose 0.3 percent.

     It was only a matter of time for stocks’ lull to mirror swings seen in other asset classes, according to Jim Strugger at MKM Holdings LLC. While the VIX fell to its lowest level in 2015, gauges of expected volatility in U.S. Treasuries and global currencies remained elevated.

     “U.S. equity market resilience has been surprising to us in recent weeks,” Strugger, a derivatives strategist at MKM in Stamford, Connecticut, wrote in a note Tuesday. The recent rally in U.S. stocks and the slide in the VIX “seemed improbable in the context of sustained elevation in volatility across asset classes and geographies,” he wrote.

  

Have a wonderful evening everyone.

Be magnificent!

 

“Take up one idea. Make that one idea your life–think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success.” Swami Vivekananda

As ever,

 

Karen

“Things work out best for those who make the best of how things work out.” John Wooden

  

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 sparrow tries to drink water from a faucet at a park in Suwon, South Korea, Tuesday. Shin Young-Geun/Yonhap/Reuters

An art student lies on a giant canvas as she paints with her limbs during a demonstration, at an exhibition of art works from the faculty of the Hubei Institute of Fine Arts, in Wuhan, Hubei province, China.

Market Closes for May 26^th, 2015

Market Index	Close	Change
Dow Jones	18041.54	-190.48   -1.04%
S&P 500	2104.20	-21.86   -1.03%
NASDAQ	5032.750	-56.612   -1.11%
TSX	15050.81	-136.59
		-0.90%

International Markets

Market Index	Close	Change
NIKKEI	20437.48	+23.71
		+0.12%
HANG SENG	28249.86	+257.03
		+0.92%
SENSEX	27531.41	-112.47
		-0.41%
FTSE 100	6948.99	-82.73
		-1.18%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.702	1.777
CND. 30 Year Bond	2.284	2.355
U.S.    10 Year Bond	2.1355	2.2092
U.S. 30 Year Bond	2.8934	2.9841

Currencies

BOC Close	Today	Previous
Canadian $	0.80436	0.81233
US $	1.24322	1.23103
Euro Rate 1 Euro=		Inverse
Canadian $	1.35242	0.73941
US $	1.08784	0.91925

Commodities

Gold	Close	Previous
London Gold Fix	1185.40	1204.10
Oil	Close	Previous
WTI Crude Future	58.03	59.02

Market Commentary:

Canada

By Joseph Ciolli

     (Bloomberg) — Canadian stocks declined the most in almost three weeks as raw-material and energy companies dropped with oil and metals prices.

     Kinross Gold Corp. and Goldcorp Inc. dropped more than 3.3 percent to pace declines among raw-material stocks. Gran Tierra Energy Inc. and Precision Drilling Corp. decreased at least 3.9 percent as a stronger dollar pulled crude prices lower.

     The Standard & Poor’s/TSX Composite Index slid 136.59 points, or 0.9 percent, to 15,050.81 at 4 a.m. in Toronto, for the biggest drop since May 6. The gauge added 0.6 percent last week.

     Eight of the 10 main groups in the S&P/TSX slipped. Energy companies decreased 1.2 percent. The S&P/TSX Gold Index dropped 2.8 percent and Brent crude fell 2.7 percent on strength in the dollar amid speculation that the Federal Reserve will raise interest rates this year.

     Crude’s correlation with the dollar became the most pronounced since 2012. The stronger dollar will add to pressure on crude, according to Morgan Stanley. A rising greenback curbs the appeal of raw materials priced in the U.S. currency.

     The dollar rose to an almost eight-year high against the yen as U.S. data from housing to manufacturing beat estimates, boosting the case for higher interest rates.

US

By Jennifer Kaplan

     (Bloomberg) — U.S. stocks fell the most in three weeks, as better-than-forecast economic data and comments by Federal Reserve officials bolstered bets for an interest-rate increase this year.

     Energy and raw-material companies retreated as the dollar jumped, while Apple Inc. and Intel Corp. paced a drop in technology shares. Hewlett-Packard Co. decreased 4 percent, and Google Inc. lost 1.4 percent. Time Warner Cable Inc. added 7.3 percent after Charter Communications Inc. agreed to buy the cable provider for about $55 billion in cash and stock. Cablevision Systems Corp. climbed 3.5 percent.

     The Standard & Poor’s 500 Index declined 1 percent to 2,104.20 at 4 p.m. in New York, after a third straight weekly advance. The Dow Jones Industrial Average sank 190.48 points, or 1 percent, to 18,041.54. The Dow ended a six-session stretch without a 100-point intraday swing, the longest in almost a year. The Nasdaq Composite Index lost 1.1 percent.

     “The looming Fed change is always out there,” said Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion. “You have a couple of items that could be considered good, things are looking better, the dollar is strong, basically it’s working against the market at the moment.”

     Better-than-estimated increases in capital goods orders and new-home sales came after Federal Reserve Chair Janet Yellen indicated the central bank will raise borrowing costs this year if the economy improves as she expects. Fed Bank of Cleveland President Loretta Mester echoed her comments on Monday, saying the U.S. economy is close to the point where it can support higher rates.

     Fed Vice Chairman Stanley Fischer said central bankers are weighing the risk of raising them prematurely against the danger of having to play catch-up if they wait too long. He also said policy makers will consider global growth as they begin to raise interest rates, and they could increase them more gradually should the world economy falter.

     Economists expect the Fed to increase rates in September, according to a Bloomberg survey. Purchases of new homes rose more than projected in April, and a separate report showed home prices increased at a faster pace than forecast in the year through March. A gauge on May consumer confidence also advanced more than estimated.

     “The market is kind of striking this in-between, wanting better economic data but then the flip side meaning the Fed is that much sooner to raising rates,” said Walter Todd, who oversees about $1 billion as chief investment officer for Greenwood, South Carolina-based Greenwood Capital. “I’m fine with that, with seeing better economic data and dealing with the implications.”

     While U.S. stocks had their slowest week of trading since New Year’s and the tightest range for equities in six months, the S&P 500 reached a fresh record on May 21. The index climbed 0.2 percent last week to mark its longest weekly winning streak since February. Equity markets were closed on Monday for the Memorial Day holiday.

     The Chicago Board Options Exchange Volatility Index jumped 16 percent to 14.06 Tuesday, the most since January. The gauge, known as the VIX, closed Friday with its second straight weekly decline.

     All 10 main groups in the S&P 500 fell, with energy, raw materials and technology shares losing more than 1.2 percent. All 30 Dow components dropped. About 6.4 billion shares changed hands on U.S. exchanges, 1 percent below the three-month average.

     First Solar Inc. slumped 7.3 percent, the most in six months, after the solar module maker was cut to the equivalent of a sell by RBC Capital Markets. Apple, H-P and Juniper Networks Inc. all fell at least 2.2 percent as tech companies in the benchmark index retreated 1.4 percent.

     Tech hardware and equipment companies lost 1.9 percent, the most of 24 industry groups in the S&P 500. Hewlett-Packard Co. led the decline, down 4 percent, the most in three months. Seagate Technology Plc and Juniper Networks Inc. dropped 2.2 percent.

     Steel producer Allegheny Technologies Inc. and miner Freeport McMoRan Inc. retreated at least 3.6 percent as raw- material companies fell 1.2 percent, the most in two months. A Bloomberg measure on the dollar reached its highest level in a month, curbing the appeal of commodities priced in the U.S. currency.

     Chevron Corp. and ConocoPhillips lost more than 1.5 percent to weigh on the energy group as oil sank. Energy companies fell the most of 10 industry groups in the S&P. Transocean Ltd. and Diamond Offshore Drilling Inc. decreased at least 4.1 percent as energy shares in the benchmark hit their lowest level in seven weeks.

     Coal stocks were among the biggest losers after the protracted slump in demand for the fossil fuel led to a rash of layoffs last week. Alpha Natural Resources Inc. fell 8.2 percent to a record low after announcing plans Friday to idle a West Virginia mine and fire 439 workers. Peabody Energy Corp. also dropped to an all-time low, down 6.1 percent, while Consol Energy Inc. lost 5.7 percent.

     The Bloomberg U.S. Airlines Index tumbled for a fifth straight day Tuesday amid concerns that carriers are losing power to raise fares even as oil prices rise. Hawaiian Holdings Inc, JetBlue Airways Corp. and Spirit Airlines Inc. slipped at least 3.8 percent.

     Genworth Financial Inc. and Lincoln National Corp. slid more than 2.4 percent as financial companies in the S&P 500 fell for a fourth session, the longest streak in two months.

Principal Financial Group declined 1.8 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“One of the most beautiful qualities of true friendship is to understand and to be understood.” Lucius Annaeus Seneca

As ever,

 

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

 

 

Karen

 

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE WEEKEND

A newborn Asian elephant gets help standing up from his mother, Farina, at Pairi Daiza wildlife park, a zoo and botanical garden in Brugelette, Belgium, Monday. Francois Lenoir/Reuters

Rowers arrive in the Grand Canal to take part in the Vogalonga, or Long Row, in the Venice lagoon in Italy Sunday. The annual boating event features a 30 km (18.6 mile) course starting at St. Mark’s Square. Manuel Silvestri/Reuters

Market Closes for May 25^th, 2015

Market Index	Close	Change
Dow Jones	18232.02	Closed
S&P 500	2126.06	Closed
NASDAQ	5089.362	Closed
TSX	15192.14	-8.62
		-0.06%

International Markets

Market Index	Close	Change
NIKKEI	20413.77	+149.36
		+0.74%
HANG SENG	27992.83	+469.11
		+1.70%
SENSEX	27643.88	-313.62
		-1.12%
FTSE 100	7031.72	+18.25
		+0.26%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.777	1.772
CND. 30 Year Bond	2.355	2.355
U.S.    10 Year Bond	2.2092	2.2092
U.S. 30 Year Bond	2.9841	2.9841

Currencies

BOC Close	Today	Previous
Canadian $	0.81233	0.81329
US $	1.23103	1.22957
Euro Rate 1 Euro=		Inverse
Canadian $	1.35166	0.73983
US $	1.09799	0.91076

Commodities

Gold	Close	Previous
London Gold Fix	1204.10	1204.10
Oil	Close	Previous
WTI Crude Future	59.02	59.02

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little-changed for a second session as energy and raw-materials producers retreated, while health-care stocks rose, in a day when public holidays in the U.S. and much of Europe reduced trading.

     Bellatrix Exploration Ltd. and RMP Energy Inc. dropped at least 2.4 percent to pace declines among energy stocks. BlackBerry Ltd. lost 0.5 percent after cutting jobs at offices around the world to consolidate its shrinking smartphone business. Valeant Pharmaceuticals International Inc., the nation’s largest drugmaker, added 0.3 percent.

     The Standard & Poor’s/TSX Composite Index fell 13.36 points, or 0.1 percent, to 15,187.40 at 4 p.m. in Toronto. U.S. markets are closed today for the Memorial Day holiday.

     Enbridge Inc. lost 2.1 percent as energy producers retreated 0.7 percent as a group. Four of 10 industries in the S&P/TSX fell on trading volume 78 percent lower than the 30-day average today.

     West Texas Intermediate oil was little changed, up 10 cents to $59.82 in New York at the 1 p.m. close of electronic trading. There was no floor session at the exchange on Monday because of the Memorial Day holiday, and transactions will be booked Tuesday for settlement purposes.

     Barrick Gold Corp. added 0.1 percent after Evolution Mining Ltd. agreed to pay $550 million for the gold producer’s Cowal gold mine in Australia.

     Centerra Gold Inc. and First Majestic Silver Corp. declined at least 2.3 percent as raw-materials producers dropped 0.3 percent as a group.

     BlackBerry fell after announcing late Friday it was making an unspecified number of cutbacks in its device software, hardware and applications business. The company employed 7,000 people as of September 2014.

US

Market are closed today for Memorial Day.

 

Have a wonderful evening everyone.

 

Be magnificent!

“Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” Barack Obama

As ever,

 

“We shall never know all the good that a simple smile can do.” Mother Teresa

 

 

Karen

 

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Van Morrison Shines Again

There has never been much clamor for loner and curmudgeon Van Morrison to make a duets album, but he did and – surprise – it’s his best album in decades.  On Duets: Reworking the Catalogue, Van the Man sounds inspired by the material and invigorated by the company he keeps.  The variety of voices is a timbre-filled treat.  Among the guests are Michael Bublé, Mavis Staples, Stevie Winwood, and Mark Knopfler.  –review from CSM.    It is really terrific!

PHOTOS OF THE DAY

A villager paints his face during the annual ‘Lok Ta Pring Ka-Ek’ religious ceremony, on the outskirts of Phnom Penh, Cambodia. Hundreds of villagers participate in the procession, which ends at a shrine where they would ask for good fortune and rain. Samrang Pring/Reuters

Workers gather rose petals on a rose field near the village of Pevtsite, Bulgaria. Bulgaria is one of the world’s leading producers of rose oil, a key ingredient in perfumes. Stoyan Nenov/Reuters

Market Closes for May 22^nd, 2015

Market Index	Close	Change
Dow Jones	18233.15	-52.59
		-0.29%
S&P 500	2128.91	-1.91   -0.09%
NASDAQ	5089.363	-1.431   -0.03%
TSX	15205.61	+2.00
		+0.01%

International Markets

Market Index	Close	Change
NIKKEI	20264.41	+61.54
		+0.30%
HANG SENG	27992.83	+469.11
		+1.70%
SENSEX	27957.50	+148.15
		+0.53%
FTSE 100	7031.72	+18.25
		+0.26%

Bonds

 

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.772	1.749
CND. 30 Year Bond	2.355	2.347
U.S.    10 Year Bond	2.2092	2.1933
U.S. 30 Year Bond	2.9841	2.9920

Currencies

BOC Close	Today	Previous
Canadian $	0.81329	0.81975
US $	1.22957	1.21988
Euro Rate 1 Euro=		Inverse
Canadian $	1.35404	0.73853
US $	1.10123	0.90808

Commodities

Gold	Close	Previous
London Gold Fix	1204.10	1205.00
Oil	Close	Previous
WTI Crude Future	59.02	59.97

Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. – Niall Ferguson.

Market Commentary:

Canada

By Joseph Ciolli

     (Bloomberg) — Canadian stocks closed little changed as gains in health-care shares offset a drop among the consumer staples and energy sectors.

     Valeant Pharmaceuticals International Inc. gained 2.3 percent to a record. Metro Inc. slid 1 percent to send consumer shares lower as April inflation was the slowest since 2013. Ensign Energy Services Inc. and Precision Drilling Corp. dropped more than 2.7 percent amid a decline in crude oil.

     The Standard & Poor’s/TSX Composite Index decreased 2.85 points, or less than 0.1 percent, to 15,200.76 at 4 p.m. in Toronto, trimming its advance in the holiday-shortened week to 0.6 percent.

     Canada’s inflation rate last month was the slowest since October 2013, falling below the central bank’s target band on a drop in energy costs.

     Four of the 10 main groups in the S&P/TSX retreated. Financial companies, which account for about one-third of the index by weighting, fell 0.3 percent.

     Materials companies in the S&P/TSX rose for the first time in four days as Western Forest Products Inc. and Primero Mining Corp. added more than 3.1 percent. The S&P/TSX Gold Index added 0.1 percent, paring its weekly loss to 2.4 percent.

     Energy producers lost 0.3 percent. Pacific Rubiales Energy Corp. decreased 3 percent, while RMP Energy Inc. slipped 2.6 percent.

US

By Joseph Ciolli and Oliver Renick

     (Bloomberg) — U.S. stocks fell after data showed inflation firming, and Federal Reserve Chair Janet Yellen said she expects to raise interest rates this year, though the pace of further increases will be gradual.

     Airline shares dropped, and Boeing Co. lost 1.7 percent. Energy companies retreated with the price of oil, and a stronger dollar weighed on consumer staples. Hewlett-Packard Co. added 2.8 percent after its results exceeded forecasts. Intuit Inc. climbed 2.5 percent as quarterly sales beat estimates. Deere & Co. advanced 4.4 percent after raising its 2015 profit forecast.

     The Standard & Poor’s 500 Index slipped 0.2 percent amid a late selloff to 2,126.06 at 4 p.m. in New York, after closing Thursday at a record. The Dow Jones Industrial Average fell 53.72 points, or 0.3 percent, to 18,232.02. The Nasdaq Composite Index lost less than 0.1 percent after topping its record close in the final hour. The markets are closed Monday for the Memorial Day holiday.

     “Any time you do get a little bit stronger data, people kind of flinch,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts. “Their first reaction is that the Fed is getting what it wants to raise rates. The stock market is at new highs and a little overbought on a near-term basis, and people are taking some chips off the table ahead of the long weekend.”

     Yellen expects to raise interest rates this year if the economy meets her forecasts, with a gradual pace of tightening to follow. While the labor market is nearing full strength, “we are not there yet,” she said Friday in a speech in Providence, Rhode Island.

     Delaying first rate increase until employment and inflation return to the Fed’s objectives “would risk overheating the economy,” Yellen said.

     A report Friday showed the cost of living excluding food and fuel rose at a faster pace than expected in April, indicating inflation is inching toward the Fed’s goal. The core consumer-price index climbed 0.3 percent, the biggest gain since January 2013. Recent mixed economic reports had prompted investors to push back estimates for when the Fed will begin raising rates, helping to drive equities to all-time highs.

     Data Thursday showed sales of existing homes in April unexpectedly dropped, after the March pace was the strongest in almost two years. A series of factory reports yesterday indicated the industry remains tepid this month against a backdrop of weaker global growth and a strong dollar.

     Most Fed officials have said they are likely to raise rates this year, though they haven’t specified precisely when. Economists expect an increase in September, according to a Bloomberg survey.

     How markets react when they do finally tighten is a source of concern for Fed officials, who have kept the benchmark federal funds rate near zero since December 2008. Chair Yellen and her colleagues are fretting that bond yields near record lows could surge once the Fed starts raising rates, according to minutes of their April meeting released this week.

     Higher costs of everything from mortgages to car loans could result, potentially putting the fragile economic recovery at risk.

     The S&P 500 posted a third consecutive weekly gain, the longest streak since February. The index yesterday snapped a two-day losing streak after three successive sessions of all- time highs. The Dow reached a record Wednesday, topping its previous closing high set on March 2.

     The Chicago Board Options Exchange Volatility Index rose 0.2 percent to 12.13, after falling Thursday to a 2015 low. The gauge, known as the VIX, closed with its second straight weekly decline. About 4.9 billion shares changed hands on U.S. exchanges, 23 percent below the three-month average.

     Transportation shares resumed their slide after bouncing Thursday from their worst drop in two months. Kansas City Southern and Delta Air Lines Inc. fell at least 1.3 percent. The Dow Jones Transportation Average sank 0.8 percent.

     Energy companies declined along with oil as the dollar gained for the fourth time in five days, reducing the appeal of commodities priced in the U.S. currency. Hess Corp. and Oneok Inc. dropped at least 1.3 percent.

     The dollar also weighed on consumer staples shares as the stronger U.S. currency can dent profits from overseas business. Tyson Foods Inc. and Philip Morris International Inc. lost more than 1.1 percent.

     “Any time you do get a little bit stronger data, people kind of flinch,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts. “Their first reaction is that the Fed is getting what it wants to raise rates. The stock market is at new highs and a little overbought on a near-term basis, and people are taking some chips off the table ahead of the long weekend.”

     Quest Diagnostics Inc. climbed 7.7 percent, and soared as much as 20 percent, after a Twitter post that was intended to convey a “market rumor” that the company was weighing a sale. Shares reached an all-time high.

     Deere rose 4.4 percent, the most in more than three years, after its better-than-expected forecast for fiscal 2015, as demand for its construction equipment mitigated the impact of declining sales of its signature green tractors and combines.

     Hewlett-Packard advanced 2.8 percent, the most since February, after reporting quarterly profit that exceeded analysts’ estimates as corporate spending on servers picked up ahead of the computer maker’s planned separation into two companies.

     Expedia Inc. reached a record, rising 6.7 percent for the fifth straight gain and the longest streak since January. The company said Friday it sold a 62.4 percent majority stake in eLong Inc. for about $671 million.

     Intuit Inc. jumped 2.5 percent to an all-time high after the TurboTax software maker reported revenue that exceeded analysts’ estimates for its most important quarter.

     NetApp Inc. rebounded to lead gains in the technology group, along with H-P and Intuit. The data management company rallied 4.3 percent after its worst drop in three years Thursday, sparked by a cut in its full-year outlook.

 

Have a wonderful weekend everyone.

 

Be magnificent!

To live completely, fully, in the moment is to live with what is, the actual, without any sense of condemnation

or justification – then you understand it so totally that you are finished with it.

When you see clearly the problem is solved.

Krishnamurti

As ever,

 

Carolann

 

Life is something that happens when you can’t get to sleep.

                                               -Fran Lebowitz, 1950-

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

It is with sadness that I greeted the news this morning that the ancient site of Palmyra had fallen into ISIS hands.  I visited this archeological wonder when visiting Syria a few years ago and it truly is one of the most well preserved ancient wonders in existence on planet Earth.  We can only pray that it is not destroyed as so many of Iraq’s vestiges of antiquity were forever destroyed by ISIS.

FYI…

INSIDE ABBEY ROAD

The London landmark made famous by the Beatles is still a busy and functioning studio as the recording home of the London Symphony Orchestra and pop stars Adele, Coldplay and Kanye West, among others.  Google has created a VIP pass at insideabbeyroad.withgoogle.com; you can take a guided tour with host Giles Martin, a house producer and son of the so-called Fifth Beatle, producer George Martin.  Listen to interviews and live clips, and try your hand at production.

PHOTOS OF THE DAY

Photographers work during a photocall for the film ‘Youth’ in competition at the 68th Cannes Film Festival in Cannes, southern France, Wednesday. Yves Herman/Reuters

A koala feeds on eucalyptus leaves in its new enclosure at the Singapore Zoo Wednesday. Four koalas, originating from Brisbane’s Lone Pine Koala Sanctuary, will stay at the zoo until January 2016 before returning to Australia. The Singapore Zoo is known for its efforts to promote and educate the public about the importance of wildlife conservation through its educational programs and through the breeding of endangered species in captivity. Koalas are considered ‘vulnerable’ and are threatened by habitat loss and encroachment. Wong Maye-E/AP

Market Closes for May 21^st, 2015

Market Index	Close	Change
Dow Jones	18285.74	+0.34
		—
S&P 500	2130.82	+4.97   +0.23%
NASDAQ	5090.793	+19.050   +0.38%
TSX	15203.61	+130.78
		+0.87%

International Markets

Market Index	Close	Change
NIKKEI	20202.87	+6.31
		+0.03%
HANG SENG	27523.72	-61.33
		-0.22%
SENSEX	27809.35	-27.86
		-0.10%
FTSE 100	7013.47	+6.21
		+0.09%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.749	1.803
CND. 30 Year Bond	2.347	2.410
U.S.    10 Year Bond	2.1933	2.2620
U.S. 30 Year Bond	2.9920	3.0640

Currencies

BOC Close	Today	Previous
Canadian $	0.81975	0.81962
US $	1.21988	1.22008
Euro Rate 1 Euro=		Inverse
Canadian $	1.35563	0.73767
US $	1.11128	0.89986

Commodities

Gold	Close	Previous
London Gold Fix	1205.00	1210.50
Oil	Close	Previous
WTI Crude Future	59.97	58.48

The ideas of debtor and creditor as to what constitutes a good time never coincide. –P.G. Wodehouse.

Market Commentary:

Canada

By Jennifer Kaplan

     (Bloomberg) — Canadian stocks rose the most in two months as energy producers jumped with the price of crude and health- care companies rallied with railroads.

     Penn West Petroleum Ltd. gained 7.2 percent to lead a rise in energy shares as oil advanced 3 percent in New York. Valeant Pharmaceuticals International Inc. jumped 2.4 percent, contributing to a 2 percent gain for health-care companies. Canadian Pacific Railway Ltd. climbed 1.8 percent.

     The Standard & Poor’s/TSX Composite Index rose 130.78 points, or 0.9 percent, to 15,203.61 at 4 p.m. in Toronto, for the best rally since March 16.

     Seven of 10 industries in the S&P/TSX gained on trading volume 7.3 percent lower than the 30-day average. Crescent Point Energy Corp. and Trinidad Drilling Ltd. rose more than 5.2 percent, as energy shares gained 2 percent as a group.

     Oil rose for a second day as U.S. crude stockpiles shrank, indicating the supply glut may be easing. Futures advanced 3 percent in New York.

     Valeant Pharmaceuticals added to annual gains that together with Concordia Healthcare Corp. have boosted total returns for the members of the S&P/TSX Composite Health Care Index to almost six times that of its U.S. counterpart, according to data compiled by Bloomberg.

     ATS Automation Tooling Systems, Inc. soared 8.2 percent, the most in the S&P/TSX after reporting first quarter earnings that outpaced analysts’ estimates.

US

By Callie Bost

     (Bloomberg) — U.S. stocks advanced, with the Standard & Poor’s 500 Index rising to an all-time high, amid better-than- forecast results from Salesforce.com Inc. and Best Buy Co. while gauges on the strength of economic growth were mixed.

     Best Buy and Salesforce surged 3.9 percent. Energy shares rallied with oil and Transocean Ltd. gained after reaching a settlement from BP Plc on issues related to the 2010 disaster in the Gulf of Mexico. CVS Health Corp. added 2.4 percent after saying it will acquire the nursing-home pharmacy Omnicare Inc. NetApp Inc. tumbled 10 percent after forecasting sales that missed analysts’ projections.

     The S&P 500 rose 0.2 percent to 2,130.82 at 4 p.m. in New York, its fourth all-time high in the last six sessions. The Dow Jones Industrial Average added 0.34 points, or less than 0.1 percent, to 18,285.74. The Nasdaq Composite Index climbed 0.4 percent. Both the Dow and Nasdaq briefly rose above their record closing levels. About 5.7 billion shares changed hands on U.S.

exchanges, 12 percent below the three-month average.

     “We’re locked in this environment where we’re more trendless than trending,” said Mark Luschini, chief investment strategist in Philadelphia at Janney Capital Management LLC, which oversees about $68 billion. “There’s enough buying power to keep a bid in equity prices. We’re in this trendless, sideways trading range, maybe grinding higher but no breakout one way or the other.”

     Investors are keeping a close watch on the Federal Reserve as policy makers debate the timing on their first interest rate increase since 2006. Meanwhile, the data they’re dependent on for their rate decision continues to provide mixed signals.                           

     Purchases of previously owned homes unexpectedly fell in April, a sign the industry’s recovery remains uneven. Contract closings dropped 3.3 percent, after a 6.5 percent gain in March which was the strongest in almost two years. Economists in a Bloomberg survey called for a 0.8 percent rise. Prices jumped as the number of houses for sales declined from the same time last year.

     Other reports showed the index of leading economic indicators rose in April by the most in nine months, manufacturing in the Philadelphia region grew less than economists forecast in May and the four-week average for jobless claims decreased to a 15-year low.

     Fed officials last month didn’t expect to raise rates at their June meeting even as they concluded that a first-quarter economic slowdown was unlikely to persist, the April minutes showed yesterday. Fed Chair Janet Yellen is due to give a speech tomorrow on the economic outlook.                         

     “Investors in the U.S. are sitting on all-time highs,” said Christian Gattiker, head of research at Julius Baer Group Ltd. in Zurich. “They’re experiencing some vertigo once in a while, looking down and asking, will it hold? The June rate hike was off the table a long time ago, but there’s some relief the Fed acknowledged this. It’s not good enough to drive markets much higher.”

     The Chicago Board Options Exchange Volatility Index fell 6 percent to 12.11, the lowest level of 2015. The gauge, known as the VIX, is on track for its second straight weekly decline.

     Seven of the S&P 500’s 10 main groups gained, with energy and phone company shares leading the way. Noble Corp. and Transocean rose at least 4.3 percent as oil rallied for a second day.

     Bank of America Corp. analysts led by Savita Subramanian recommended in a note today that investors increase their allocations to the energy group to more than their weighting in the S&P 500, citing a better outlook for commodity prices and a likely trough in earnings revisions.

     Financial companies slipped 0.2 percent. Insurer Aflac Inc. sank 2.8 percent after the chief executive said the company is seeking to replace Kriss Cloninger as chief financial officer by the end of June.

     Best Buy climbed 3.9 percent, its best gain of the year, after posting first-quarter profit that topped analysts’ estimates after large-screen televisions and the new iPhone helped boost U.S. sales.

     Salesforce rallied 3.9 percent after raising its revenue forecast as large enterprises signed up for the company’s products, underscoring its potential appeal as a takeover target.

     Joining Salesforce in pacing gains in technology, Hewlett- Packard Co. climbed 2.3 percent after selling a majority stake in its Chinese server, storage and technology assets for $2.3 billion to Tsinghua University. Qualcomm Inc. advanced 1.2 percent as it began an accelerated $5 billion share buyback. Apple Inc. increased 1 percent.                       

     CVS gained 2.4 percent, the most since December after its deal valued at $12.7 billion to acquire Omnicare, which adds services for the elderly to bolster its position as the biggest U.S. retailer of prescription drugs. Competitor Walgreens Boots Alliance Inc. increased 2.7 percent, and pharmacy benefit manager Express Scripts Holding Co. advanced 1.7 percent.

     Transportation companies rebounded as railroads rallied. An airlines selloff Wednesday sent S&P 500 transports to their worst drop in two months. Kansas City Southern, Union Pacific Corp. and Norfolk Southern Corp. rose at least 1 percent Thursday.

     The Dow Jones Transportation Average jumped 0.6 percent to rebound from a 2 percent rout Wednesday. The gauge has fallen 6.4 percent this year, trailing the Dow’s 2.6 percent gain.

     “Transportation stocks are more reflective of how our economy is starting to show significant cracks,” said Yousef Abbasi, the global market strategist at JonesTrading Institutional Services LLC in New York. “The market making news highs while TRAN is making new lows is never a good sign.”                         

     NetApp Inc. slumped 10 percent, the most in three years, after quarterly earnings and revenue missed analysts’ estimates and the data management company cut its full-year forecast.

     Lumber Liquidators Holdings Inc. plunged 17 percent to its lowest level in more than three years after saying Chief Executive Officer Robert Lynch will step down as the company grapples with the fallout of a report that it sold flooring with toxic levels of formaldehyde.

     Real-estate companies in the S&P 500 fell for a fourth day, their longest losing streak this month. CBRE Group Inc. and Iron Mountain Inc. declined more than 1.1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

Contemplation is seeing the here and now.

Swami Prajnanpad

As ever,

 

Carolann

 

I believe that every person is born with talent.

                         -Maya Angelou, 1928-2014

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in 1873, businessman Levi Strauss and tailor Jacob Davis received a patent to create work pants with metal rivets, marking the birth of blue jeans.

David Letterman’s last show tonight…hard to believe….I’ll be watching to see who his last guests are; it was great to see Bill Murray last night – his very first guest and Bob Dylan!
 
Bill Murray spray paints Dave Letterman’s desk on the first taping of ‘The Late Show with David Letterman’ on Aug, 30, 1993, on CBS.

CBS

Wednesday night marks David Letterman’s last show as host of “The Late Show,” a gig he’s had since 1993. The final episode will likely garner a lot of viewers who want to see the last broadcast from a comedy legend.

What have been the most popular “Late Show” broadcasts over the years?  As a nod to Letterman’s Top 10 skits, we’ve compiled his top 10 most-watched episodes, using same-day viewership data from Nielsen, a market research film specializing in TV.

Of the list, it’s important to note that five of the top 10 broadcasts were during the 1994 Winter Olympics, which CBS broadcast. In this instance, Letterman might have benefited from the Olympics lead-in. Other notable moments include his beef with Oprah, his first show with Bill Murray, and that time he came back from heart surgery.

And now for the list:

10. Marv and Sinead
Date: February 22, 1994
Viewers: 10.2 million
Episode/guests: Marv Albert; Sinead O’Connor; illusionist Ricky Jay; Dave’s mom Dorothy from the Winter Olympics with Norman Schwarzkopf and Katarina Witt

9. Robin Williams and the Whiz Kid
Date: August 31, 1993
Viewers: 10.7 million
Episode/guests: Robin Williams; John Mellencamp; 4-year-old geography whiz Jonathan Estrada

8. Don Imus, meet Nancy Kerrigan
Date: February 24, 1994
Viewers: 10.7 million
Episode/guests: Brett Butler; Don Imus; Linda Ronstadt; “bowling on 53rd Street” with Dick Weber; Dave’s mom Dorothy at Winter Olympics with Nancy Kerrigan

7. Hillary’s day
Date: January 12, 2000
Viewers: 11.2 million
Episode/guests: Hillary Clinton (first appearance on the show); Art Donovan

6. The heart-to-heart moment
Date: February 21, 2000
Viewers: 11.7 million
Episode/guests: Letterman’s first broadcast after heart surgery; Regis Philbin; Robin Williams; Foo Fighters

5. Dave’s Mom, superstar reporter
Date: February 18, 1994
Viewers: 12.8 million
Episode/guests: Bebe Neuwirth; Jackson Browne; Dave’s mom Dorothy at the Winter Olympics in Lillehammer and Top 10 with speed skater Dan Jansen
 
CBS/Everett Collection

4. The Oprah Beef 
Date: December 1, 2005
Viewers: 13.5 million
Episode/guests: Oprah Winfrey; Bonnie Raitt

3. The Power of Stupid Human Tricks
Date: February 23, 1994
Viewers: 14.2 million
Episode/guests: Stupid Human Tricks; Wynonna; Laurence Fishburne; Dave’s mom Dorothy at Winter Olympics with Norwegian athlete Arne Hansen and Calvert De Forest

2. A Double “Bill”
Date: August 30, 1993
Viewers: 15.2 million
Episode/guests: First “Late Show” broadcast; Bill Murray; Billy Joel

1. That time Michael J. Fox, the Who’s Roger Daltrey and the Spin Doctors hung out
Date: February 25, 1994
Viewers: 15.5 million
Episode/guests: Michael J. Fox; Roger Daltrey; the Spin Doctors; Dave’s mom Dorothy from the Winter Olympics

All images courtesy of CBS.

Market Closes for May 20^th, 2015

Market Index	Close	Change
Dow Jones	18285.47	-26.92
		-0.15%
S&P 500	2126.68	-1.15   -0.05%
NASDAQ	5071.742	+1.708   +0.03%
TSX	15091.79	-29.23
		-0.19%

International Markets

Market Index	Close	Change
NIKKEI	20196.56	+170.18
		+0.85%
HANG SENG	27585.05	-108.49
		-0.39%
SENSEX	27837.21	+191.68
		+0.69%
FTSE 100	7007.26	+12.16
		+0.17%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.803	1.828
CND. 30 Year Bond	2.410	2.432
U.S.    10 Year Bond	2.2620	2.2850
U.S. 30 Year Bond	3.0640	3.0729

Currencies 

BOC Close	Today	Previous
Canadian $	0.81962	0.81777
US $	1.22008	1.22284
Euro Rate 1 Euro=		Inverse
Canadian $	1.35346	0.73884
US $	1.10934	0.90144

Commodities

Gold	Close	Previous
London Gold Fix	1210.50	1214.30
Oil	Close	Previous
WTI Crude Future	58.48	57.26

Make all you can, save all you can, give all you can.  – John Wesley

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, snapping a three-day advance, as the nation’s largest lenders retreated to lead loss among nine of 10 main industries.

     Bank of Nova Scotia and Royal Bank of Canada dropped at least 0.6 percent to pace declines among the banks. Air Canada tumbled 3.7 percent as concerns about competition in the U.S. sent airlines lower. Pacific Rubiales Energy Corp. and Surge Energy Inc. advanced at least 4.3 percent as oil climbed in New York. B2Gold Corp. increased 6.9 percent after securing a new revolving credit facility and boosting its gold production.

     The Standard & Poor’s/TSX Composite Index fell 48.19 points, or 0.3 percent, to 15,072.83 at 4 p.m. in Toronto. The benchmark equity gauge had increased 0.9 percent in the past three days.

     Nine of 10 industries in the S&P/TSX retreated on trading volume 13 percent lower than the 30-day average today.

     Canadian Imperial Bank of Commerce declined 0.8 percent as the lender is reportedly withdrawing from its U.S. credit business, according to two people with direct knowledge of the situation.

     Pacific Rubiales climbed 6.4 percent and Suncor Energy Inc. increased 0.8 percent as energy producers gained 0.3 percent as a group. West Texas Intermediate oil for July delivery gained 1.7 percent to settle at $58.98 a barrel in New York.

     Agnico Eagle Mines Ltd. added 0.6 percent. Gold futures for June delivery were little-changed in New York after minutes from the Federal Reserve’s last meeting showed officials last month didn’t expect to raise rates at their next gathering in June.

US

By Callie Bost

     (Bloomberg) — U.S. stocks closed little changed, with the Standard & Poor’s 500 Index slipping for a second day, as a selloff in airlines offset Federal Reserve meeting minutes that showed officials in no hurry to raise interest rates.

     Southwest Airlines Co. fell to a six-month low to pace a drop among air carriers. Lowe’s Cos. slid 4.6 percent after reporting first-quarter profit that trailed analysts’ estimates. Yahoo! Inc. climbed 4.4 percent after affirming plans to spin off a stake in Alibaba Group Holding Ltd. Cablevision Systems Corp. jumped 18 percent amid cable industry deal speculation.

     The S&P 500 Index fell 0.1 percent to 2,125.85 at 4 p.m. in New York, after briefly climbing above its all-time high. The Dow Jones Industrial Average declined 26.99 points, or 0.2 percent, to 18,285.40 after closing Tuesday at a record. The Nasdaq Composite Index rose less than 0.1 percent. About 5.8 billion shares changed hands on U.S. exchanges, 9.6 percent below the three-month average.

     “While the Fed continues to be data-dependent, they’re pushing back the timeline to later this year,” said Eric Wiegand, a senior portfolio manager at U.S. Bank Wealth Management in New York. “June is off the table. ‘‘Clarity is going to come in bits and pieces in further labor data and second-quarter earnings.’’

     Fed officials last month didn’t expect to raise rates at their June meeting even as they concluded that a first-quarter economic slowdown was unlikely to persist, the meeting minutes showed. A ‘‘few’’ members said they anticipated the economy would be ready for a June liftoff.

     In its April statement, Fed policy makers said the economy slowed partly reflecting ‘‘transitory factors,’’ and that it expected growth at a ‘‘moderate pace.’’ Since the meeting, payrolls figures have improved, while weaker-than-forecast data on manufacturing and retail sales prompted economists to mark down projections for second-quarter economic growth.

     Chicago Fed President Charles Evans on Monday repeated his call to hold interest rates near zero until early 2016 and raise them only gradually thereafter, because inflation is still too far below the Fed’s goal.

     The Fed has been struggling with raising rates as inflation remains tepid even as the job market has strengthened. A report on Friday is forecast to show consumer prices grew by 1.7 percent on a year-over-year basis, according to a Bloomberg survey of economists. The Fed’s target is 2 percent.                       

     ‘‘It’s still difficult to understand by how much U.S. growth is really picking up,” said Ros Price, the chief investment strategist at Seven Investment Management in London. “The Fed won’t have enough data — even by September. Economic reports have been quite poor, and then we get a number like yesterday showing a solid housing market. It wouldn’t surprise me if we got a rate rise in December or even early next year.”

     U.S. stocks held near their records yesterday as improving home-construction data bolstered speculation the economy will rebound from a weak winter. The S&P 500 has risen 1.9 percent this month. An increase in May would mark the index’s first back-to-back gains in six months. The gauge still trails most developed-market equity benchmarks in 2015 as a rising dollar and disappointing economic data limited gains.

     Most S&P 500 members have reported results this earnings season, and 71 percent surpassed profit estimates. More than half missed sales projections. Hewlett-Packard Co., Best Buy Co. Inc. and Deere & Co. are among companies due to release earnings this week.

     The Chicago Board Options Exchange Volatility Index rose 0.2 percent to 12.88 The gauge, known as the VIX, fell 3.7 percent last week for its first weekly decline in three weeks.

     Five of the S&P 500’s 10 main groups declined, with industrial companies weighed down the most by the slide in airline shares. Phone companies posted the best gains, after Altice SA’s $9.1 billion deal to buy a 70 percent stake in Suddenlink Communications, the seventh-largest U.S. cable company.

     A Bloomberg index of airline stocks lost 8 percent, the most since Oct. 2011, amid signs that a year of lower fuel costs has left them poised to ramp up competition for customers with cut-rate fares and more routes.

     Southwest Airlines Co. tumbled 9.1 percent after the carrier yesterday forecast its passenger unit revenue will fall 3 percent in the second quarter, and also said fuel costs in the period will be higher than what it predicted in an earnings call April 23.

     JetBlue Airways Corp. slid 6.9 percent, while United Continental Holdings Inc. and American Airlines Group Inc. fell 10 percent. The Dow Jones Transportation Average lost 2 percent, the biggest retreat in two months, to the lowest level since Oct. 23.

     JPMorgan Chase & Co., Citigroup Inc. sank at least 0.7 percent and Bank of America Corp. was little changed after JPMorgan and Citi agreed to plead guilty to charges tied to a currency-rigging probe and pay hundreds of millions of dollars in fines. The Fed fined Bank of America $205 million.

     Bank shares in the S&P 500 declined from a seven-year high as Treasury yields retreated for the first time this week. Fifth Third Bancorp and SunTrust Banks Inc. lost more than 1.4 percent after Robert W. Baird & Co. analyst David George downgraded their shares.

     Etsy Inc. plunged 18 percent. The online marketplace for hand-crafted goods said in its first earnings report as a public company that the strong dollar ate into first-quarter revenue.

     Cablevision Systems Corp. soared 18 percent to its highest since 2011 on speculation that an agreement by Europe’s Altice to acquire control of Suddenlink may spur more deals in the cable industry.

     Time Warner Cable Inc. climbed 5.4 percent to a record. The company, whose merger with Comcast Corp. was called off last month, has received a takeover approach from Altice, a person with knowledge of the matter said.

     Hormel Foods Corp. jumped 4.2 percent, the most since August, after its quarterly profit exceeded analysts’ forecasts while revenue missed.

     Yahoo added 4.4 percent after falling 7.6 percent Tuesday on concerns that Internal Revenue Service changes would affect efforts to exit from Alibaba. Potential changes to the tax-free treatment of spinoffs shouldn’t affect previously filed requests, the Web portal said in an e-mailed statement.

     Endo Pharmaceuticals Plc led the health-care group higher, extending a rebound after a 5.4 percent drop Monday on its Par Pharmaceutical Holdings Inc. buyout. Shares rose 3.2 percent after climbing 2.8 percent yesterday, Endo’s best two-day gain since January.

 

Have a wonderful evening everyone.

 

Be magnificent!

Such awareness is like living with a snake in the room;

you watch its every movement, you are very, very sensitive to the slightest sound it makes.

Such a state of attention is total energy;

in such awareness the totality of yourself is revealed in an instant.

Krishnamurti

As ever,
 

Carolann

 

The shortest way to do many things is to do only one thing at once.

                                                      -Samuel Smiles, 1812-1904

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in 1536, Anne Boleyn, the second wife of King Henry VIII and mother of Queen Elizabeth I, was beheaded in London on charges of adultery, incest, witchcraft and conspiracy against the king.

Also on this day, in 1936, Gone with the Wind was published.

And Dorothy Wordsworth wrote in her Journal on May 19^th, 1800:

Sauntered a good deal in the garden, bound carpets, mended old clothes.  Read Timon of Athens.  Dried linen.  Molly weeded the turnips, John stuck the peas.  We had not much sunshine or wind, but no rain till about seven o’clock, when we had a slight shower just after I had set out upon my walk.  I did not return but walked up into the Black Quarter [Easedale].  I sauntered a long time among the rocks above the church….I strolled on, gathered mosses etc.   the quietness and still seclusion of the valley affected me even to producing the deepest melancholy.  I forced myself from it.

Rosemary Verey wrote:  “An amusing and interesting discussion arose yesterday when I asked a group of Americans from California what struck them most about our countryside.  “Its greenness” was their immediate answer.  The hedgerows and trees have changed now from brown to green.  When you stop to consider, green is the predominant colour of our countryside and when huge fields of the strident yellow oil-seed rape make a sheet of bright colour, you wonder if you like it.  I do.  I know it is only momentary and it lightens the landscape from dawn to dusk, and even by moonlight.  Counting these fields is an occupying game for children when they are making a long journey from one side of England to the other.  Travelling between East Anglia and Gloustershire, the wife of one of my farming neighbors said her children stopped counting when they reached 250.  “Why does no one develop paler yellow or even white rape flowers/”  one American lady asked.  We discussed how pretty the fields would look – just like an enormous spring garden planted with white honesty and yellow tulips. –from A Countrywoman’s Notes.

PHOTOS OF THE DAY

Britain’s Prince Charles (c.) talks with Bridget Barry, Burren BEO trust, and Dr Brendan Dunford, Burren Farming for Conservation Program’s Project Manager, during a visit to the Burren in County Clare, Ireland, Tuesday. Prince Charles visited the Burren, an ancient and dramatic stony outcrop famed for its rare plant life, biodiversity and archaeology, on the first day of his four-day visit to the Republic of Ireland and Northern Ireland.Peter Morrison/AP

A man walks a student to school in the rain in Boulder, Colo., Tuesday. Colorado braced for a spring storm with unseasonably heavy rains and several inches of snow expected in the high country. Brennan Linsley/AP

Market Closes for May 19^th, 2015

Market Index	Close	Change
Dow Jones	18312.39	+13.51
		+0.07%
S&P 500	2127.86	-1.34   -0.06%
NASDAQ	5070.035	-8.404   -0.17%
TSX	15123.72	+15.60
		+0.10%

International Markets

Market Index	Close	Change
NIKKEI	20026.38	+136.11
		+0.68%
HANG SENG	27693.54	+102.29
		+0.37%
SENSEX	27645.53	-41.77
		-0.15%
FTSE 100	6995.10	+26.23
		+0.38%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.828	1.712
CND. 30 Year Bond	2.432	2.336
U.S.    10 Year Bond	2.2850	2.1459
U.S. 30 Year Bond	3.0729	2.9331

Currencies

BOC Close	Today	Previous
Canadian $	0.81777	0.83235
US $	1.22284	1.20142
Euro Rate 1 Euro=		Inverse
Canadian $	1.36314	0.73360
US $	1.11473	0.89708

Commodities

Gold	Close	Previous
London Gold Fix	1214.30	1220.50
Oil	Close	Previous
WTI Crude Future	57.26	59.69

No finance, no romance.  –Lyle Lovett

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little changed after two days of gains, as an advance among health-care stocks offset a slump in energy producers after oil slid to a three-week low.

     Turquoise Hill Resources Ltd. rose 5 percent after Mongolia and parent Rio Tinto Group settled a dispute over the Oyu Tolgoi copper and gold mine. Valeant Pharmaceuticals International Inc. increased 3.3 percent to pace gains among health stocks. Penn West Petroleum Ltd. and Painted Pony Petroleum Ltd. fell more than 7.3 percent as crude slid a fifth day in New York.

     The Standard & Poor’s/TSX Composite Index rose 12.90 points, or 0.1 percent, to 15,121.02 at 4 p.m. in Toronto. Canadian markets were closed Monday for the Victoria Day holiday.

     Six of 10 industries in the S&P/TSX retreated on trading volume 5.4 percent lower than the 30-day average today. Valeant and ProMetic Life Sciences Inc. jumped as health-care companies gained 3 percent as a group.

     ProMetic increased 4.2 percent, to an almost three-week high, after the company agreed to a 15-year manufacturing pact with Emergent BioSolutions Inc. The deal gives ProMetic access to Emergent’s biopharmaceuticals facility in Winnipeg.

     Imperial Metals Corp. tumbled 6.3 percent after its top shareholder agreed to provide additional funds to the copper miner after a delay to the start of production.

     Penn West Petroleum retreated 9.5 percent as energy companies dropped 1.4 percent as a group.

     West Texas Intermediate crude for June delivery fell 3.7 percent to $57.26 a barrel in New York, the lowest since April 28, as the dollar strengthened and Goldman Sachs Group Inc. said a continuing surplus would send prices back to $45 a barrel by October.

US

By Callie Bost and Joseph Ciolli

     (Bloomberg) — U.S. stocks closed little changed, with the Standard & Poor’s 500 Index slipping from a record, after data showing housing starts surged to a seven-year high bolstered speculation the Federal Reserve may raise interest rates this year.

     Wal-Mart Stores Inc. slumped 4.4 percent after quarterly results missed estimates, while Urban Outfitters Inc. tumbled 15 percent after profit and sales were short of analysts’ projections. Energy shares slid with oil prices. Yahoo! Inc. fell 7.6 percent, leading technology shares lower. Take-Two Interactive Software Inc. jumped 18 percent after its results beat forecasts.

     The S&P 500 Index declined 0.1 percent to 2,127.83 at 4 p.m. in New York, snapping a three-session string of all-time highs. The Dow Jones Industrial Average rose 13.51 points, or 0.1 percent, to 18,312.39, a record for a second day. The Nasdaq Composite Index lost 0.2 percent. About 6.2 billion shares changed hands on U.S. exchanges, 4 percent below the three-month average.

     “When we get stronger news, we get concern about rising interest rates,” said Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates in Bethlehem, Pennsylvania. “We’re back to the guessing  game of what happens with rates and whether economic data will be strong enough for the Fed to act.”

     A report today showed new residential construction surged in April to the highest level since November 2007, while more permits, a proxy for future construction, were issued than at any time since June 2008.

     An improving labor market and mortgage costs close to multi-year lows are reviving residential construction, a sign that the weakness in early 2015 was probably due to harsh winter weather.

     That supports the Federal Reserve’s view that a slowdown in first-quarter economic growth was likely temporary, as policy makers debate the timing of raising interest rates. Minutes from the Federal Reserve’s April meeting will be released tomorrow.

     U.S. equities rose to all-time highs Monday, helped by merger activity, an advance in Apple Inc. and higher bond yields that sent banks rallying.

     “You saw that housing starts report, which was nice and solid,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. “It’s nice to see U.S. economic data beating, given how bad of a run we’ve seen with macro data. I thought that would be enough of a kick to keep us going in the follow-through, but crude oil is down a little bit which is curbing risk-taking a little.”

     The Chicago Board Options Exchange Volatility Index rose 0.9 percent to 12.85, after a 2.8 percent gain on Monday. The gauge, know as the VIX, fell 3.7 percent last week for its first weekly decline in three weeks.

     Seven of the S&P 500’s 10 main groups declined Tuesday, led by energy. Financial shares in the benchmark index advanced for a second day to a 2015 high, as Treasury yields extended their climb after stronger-than-forecast housing data. Wells Fargo & Co., BB&T Corp. and Huntington Bancshares Inc. added at least 1.1 percent. Wells Fargo reached an all-time high, while Huntington hit its highest level since Sept. 2008.

     An S&P gauge of homebuilders rose 0.9 percent to the highest since April after the better-than-forecast housing starts. The index rose for a fourth day, its longest streak since January. KB Home jumped 2.4 percent, while Ryland Group Inc. and D.R. Horton Inc. added at least 1.1 percent.

     With signs of better economic growth in the housing data and a drop in oil prices, companies that stand to benefit from healthier consumer spending got a lift. Royal Caribbean Cruises Ltd. rose 1.8 percent, bringing its May gain to 13 percent, the best month since July 2013. Olive Garden chain owner Darden Restaurants Inc. advanced 1.7 percent.

     Merck & Co. added 0.9 percent amid an advance in health- care shares, which also rose for a fourth day. Pfizer Inc. climbed 0.7 percent. Endo International Plc rebounded 2.8 percent after losing 5.4 percent Monday on its Par Pharmaceutical Holdings Inc. buyout. Hospital operators HCA Holdings Inc. and Tenet Healthcare Corp. increased more than 1.7 percent, with HCA posting a third straight record close.

     Energy companies in the S&P 500 dropped 1.2 percent to a one-month low, as crude oil declined 3.7 percent. Chevron Corp. lost 1.5 percent, while Diamond Offshore Drilling Inc. and Transocean Ltd. retreated more than 4.9 percent.

     Raw-material shares fell for a second day as the dollar’s best two-day gain since De. 2011 reduces the appeal of commodities priced in the U.S. currency. Freeport-McMoRan Inc. lost 3.8 percent, after falling 3.1 percent Monday, while steelmaker Nucor Corp. slipped 2.2 percent.

     Technology shares slid, led by a slump in Yahoo. The stock lost 7.6 percent on reports that the U.S. Internal Revenue Service is considering a rule change that might complicate efforts to exit a stake in Alibaba Group Holding Ltd. Alibaba rose 1.3 percent.

     Take-Two Interactive soared 18 percent, the most since Feb. 2008, as the video game maker’s quarterly results benefited from sales of the latest edition of Grand Theft Auto as well as Evolve, a shooter game released Feb. 10.                        

    TJX Companies Inc. jumped 2.9 percent, its biggest gain since February. The off-price apparel and home fashion retailer boosted its full-year profit and sales growth forecasts.

     Wal-Mart dropped 4.4 percent, the most in three years, to a six-month low after first-quarter U.S. sales grew more slowly than projected and currency fluctuations ate into profit.

     Urban Outfitters tumbled 15 percent, the most since January 2012, to a four-month low after the apparel retailer’s first- quarter profit and sales missed analysts’ forecasts.

     MBIA Inc. sank 8.4 percent, the biggest decline in more than two years. Warburg Pincus LLC, the largest holder of MBIA’s stock, said it will reduce its stake by more than half.

 

Have a wonderful evening everyone.

 

Be magnificent!

It is only when we give complete attention to a problem,

and solve it immediately – never carrying it over to the next day,

the next minute – that there is solitude.

To have inward solitude and space is very important

because it implies freedom to be, to go, to function, to fly.

Krishnamurti

 

As ever,

 

Carolann

 

Love is the only force capable of transforming an enemy into friend.

                                           -Martin Luther King, Jr., 1929-1968

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day, May 15^th, in 1905, A.C. Benson, wrote this in his diary:

I had one of the most curiously beautiful [bicycle] rides of my life.  I got to Milton:  saw the church, in its green shade, with its elaborately written monuments, its glorious little window of Jacob, with hands like parsnips:  then crossed the line, among the green pastures, so full of great thorn-thickets:  and then along the towpath, riding slowly down the Cam.  Such a sweet clear, fresh day.  I wound slowly along past Baitsbite and the Waterbeach bridge, into the heart of the fen.  The space below the towpath full of masses of cow-parsley:  the river sapphire blue between the green banks – the huge fields running for miles to the right, with the long lines of dyke and lode; far away the blue tower of Ely, the brown roofs of Reach, and the low wolds of Newmarket.  It was simply enchanting!

… so I wound on and on, full of peace and content;  I declare that the absolutely flat country, golden with buttercups, and the blue tree-clumps far away backed by hills, and over all the vast sky-perspective, is the most beautiful thing of all.

PHOTOGRAPHS OF THE DAY

Competitors take part in a coaching marathon along the ‘Long Walk’ during the third day of the Royal Windsor Horse Show at Windsor Castle, Windsor, England, Friday. Steve Parsons/AP

A woman walks along a ‘Street of flying umbrellas’ art installation in St.Petersburg, Russia, Friday. Dmitry Lovetsky/AP

Market Closes for May 15^th, 2015

Market Index	Close	Change
Dow Jones	18272.56	+20.32
		+0.11%
S&P 500	2122.73	+1.63   +0.08%
NASDAQ	5048.293	-2.502   -0.05%
TSX	15108.12	+80.00
		+0.53%

International Markets

Market Index	Close	Change
NIKKEI	19732.92	+162.68
		+0.83%
HANG SENG	27822.28	+535.73
		+1.96%
SENSEX	27324.00	+117.94
		+0.43%
FTSE 100	6960.49	-12.55
		-0.18%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.712	1.805
CND. 30 Year Bond	2.336	2.418
U.S.    10 Year Bond	2.1459	2.2354
U.S. 30 Year Bond	2.9331	3.0584

Currencies

BOC Close	Today	Previous
Canadian $	0.83235	0.83388
US $	1.20142	1.19921
Euro Rate 1 Euro=		Inverse
Canadian $	1.37643	0.72652
US $	1.14568	0.87285

Commodities

Gold	Close	Previous
London Gold Fix	1220.50	1225.00
Oil	Close	Previous
WTI Crude Future	59.69	59.88

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day, paring a third week of losses, as raw-materials producers and railway shares climbed.

     Labrador Iron Ore Royalty Corp. surged 11 percent after Osisko Gold Royalties Ltd. bought a stake in the company. Canadian National Railway Co. and Canadian Pacific Railway Ltd. gained at least 0.8 percent to pace gains among industrial stocks.

     The Standard & Poor’s/TSX Composite Index gained 80 points, or 0.5 percent, to 15,108.12 at 4 p.m. in Toronto. The index dropped 0.4 percent this week, for a third decline, its worst streak this year.

     Stantec Inc. rallied 3.7 percent and Air Canada climbed 1 percent as industrials shares increased 1.2 percent as a group. Nine of 10 industries in the S&P/TSX rose on trading volume 17 percent lower than the 30-day average.

     Canadian factory sales rose 2.9 percent to C$51 billion ($42 billion) in March, the fastest pace in almost four years, as production of planes and automobiles rebounded. Economists had forecast a median 1 percent increase. A weaker Canadian dollar is helping manufacturing because it makes their goods cheaper to foreign customers.

     Fortuna Silver Mines Inc. added 3.3 percent as silver futures for July delivery increased in New York. Gold futures capped the biggest weekly rally since mid-January, climbing 2.9 percent. OceanaGold Corp. rose 3.2 percent.

     Manulife Financial Corp. retreated 0.5 percent for a fourth day of losses. The S&P/TSX Financials Index lost 0.1 percent as Toronto-Dominion Bank and Royal Bank of Canada, the nation’s largest lenders, each slipped.

US

By Callie Bost

     (Bloomberg) — The Standard & Poor’s 500 Index closed at record for a second straight day, as investors speculated the Federal Reserve would continue to support economic growth after data showed an unexpected drop in consumer confidence and weak factory output.

     Netflix Inc. added 4.5 percent after people familiar with the matter said the company is in partnership talks with a Chinese media firm. Pepco Holdings Inc. and Exelon Corp. surged after Maryland regulators approved their merger. Keurig Green Mountain Inc. lost 8.6 percent, and bank shares capped their biggest retreat in a month.

     The S&P 500 rose 0.1 percent to 2,122.70 at 4 p.m. in New York. The gauge added 0.3 percent this week for its first back- to-back weekly gain in more than a month. The Dow Jones Industrial Average climbed 20.32 points, or 0.1 percent, to 18,272.56. About 5.7 billion shares traded hands Friday, 11 percent below the three-month average.

     “The data plays into the renewed concern that economy in the second quarter will move at a glacial place, renewing hope that the Fed won’t move aggressively in 2015,” said Chad Morganlander, a money manager at Stifel, Nicolaus & Co., which oversees about $170 billion. “The market is listless today and you had a big move yesterday that took everybody by surprise on the back of economic data.”

     Consumer confidence unexpectedly fell in May by the most in more than two years, as the University of Michigan preliminary index of sentiment dropped to the lowest since October.                         

     A separate report showed factory production stalled in April, following a 0.3 percent March gain that was larger than previously estimated. The data add to previous reports that suggest economic growth isn’t strong enough to warrant higher interest rates.

     A report Thursday showed wholesale prices unexpectedly declined in April, indicating inflation is well-contained as Fed officials weigh when to raise the benchmark rate. Concern the Fed would raise interest rates even with worsening economic data and predictions for earnings declines have whipsawed stocks between gains and losses in the previous five weeks.

     Signs that the global bond market selloff has run its course and the dollar’s retreat yesterday spurred gains in multinational companies, helping the S&P 500 erase declines earlier in the week and close at a new high. The weaker dollar lessens the drag on the economy and corporate profits as it makes exports more competitive.                       

     With the earnings season drawing to a close, S&P 500 members are now on track to deliver income growth of 0.4 percent in the first quarter, compared with projections for a 5.8 percent decline as recently as March. Out of 460 S&P 500 companies that have reported earnings, 72 percent have beaten earnings expectations, while 47 percent have exceeded sales estimates.

     The Chicago Board Options Exchange Volatility Index fell 2.8 percent to 12.38, after sliding 7.4 percent Thursday. The gauge fell 3.7 percent in the week, its first drop for the gauge, known as the VIX, in three.

     Seven of the S&P 500’s 10 main groups were higher, with utilities and consumer discretionary companies gaining the most while financial and technology shares led declines.

     Netflix rose 4.5 percent to an all-time high, bolstering gains in consumer discretionary shares. People familiar with the matter said it’s in talks with a Chinese media company backed by Jack Ma and other possible partners as it seeks entry into the country’s $5.9 billion online video market.

     Bed Bath & Beyond Inc. jumped 5.3 percent, its biggest gain since September, after Leonard Green & Partners LP reported a new stake in the retailer.

     Transportation stocks in the S&P 500 advanced, as United Parcel Service Inc. climbed 1.7 percent after Goldman Sachs Group Inc. upgraded its share recommendation to buy from hold. Railroads CSX Corp. and Union Pacific Corp. each increased 1.7 percent.

     The Dow Jones Transportation Average gained 1 percent as Avis Budget Group Inc. jumped 10 percent, the most since May 2012, after competitor Hertz Global Holdings Inc. said it’s raising prices in expectation of a busy summer travel season. Hertz added 5.3 percent.

     Yum! Brands Inc. gained 4.4 percent to $93.96, a record, after JPMorgan Chase & Co. analyst John Ivankoe raised his rating on the shares to overweight from neutral.

     Pepco Holdings rallied 5.2 percent, the most in a year, and Exelon rose 2.9 percent to lead utilities higher after the Maryland Public Service Commission approved Exelon’s $6.8 billion buyout of Pepco.

     Financial shares in the S&P 500 dropped 0.4 percent as yields on 10-year U.S. Treasuries slid the most in six weeks on economic data. Traders are viewing softer-than-projected economic gauges as a challenge to any Fed interest-rate increase this year.

     The group has rallied as much as 2.6 percent this month as 10-year note yields climbed for three straight weeks. Charles Schwab Corp. and E*Trade Financial Corp. slipped more than 2 percent. Regions Financial Corp. fell 1.8 percent, the most in a month, while SunTrust Banks Inc. dropped 1.5 percent.

     Symantec Corp.’s 5.5 percent retreat weighed on the technology group after the the security software maker issued profit and revenue forecasts short of analysts’ predictions. Microsoft Corp. and Facebook Inc. gave back some of Thursday’s gains, each losing 1 percent.

     Keurig Green Mountain declined 8.6 percent after the company said its new cold brewing system won’t be available in all its retail outlets until next year, a slower schedule than investors had expected.

     Deere & Co. dropped 3.3 percent, the most since October, after JPMorgan Chase & Co. analyst Ann Duignan cut the stock to underweight, the equivalent of a sell rating, from neutral.

 

Have a wonderful  long weekend everyone.

 

Be magnificent!

There is no weapon more powerful in achieving the truth than acceptance of oneself.

Swami Prajnanpad

As ever,

 

Carolann

 

Learning never exhausts the mind.

     -Leonardo da Vinci. 1452-1519

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7