Month: May 2015

Dear Friends,

Tangents:

PHOTOS OF THE DAY

Visitors watch ‘Skuls’, Lego sculptures by US artist Nathan Sawaya presented during an exhibition The Art of the Brick, in Paris, France, Thursday. The exhibition is created with Lego bricks and runs until Aug. 30. Christophe Ena/AP

 

The pack of riders competes during the sixth stage of the 98th Tour of Italy cycling race from Montecatini Terme to Castiglione della Pescaia, Italy, Thursday. Lotto Soudal rider Andre Greipel of Germany won the stage while Tinkoff Saxo rider Alberto Contador of Spain retained the leader’s pink jersey. Fabio Ferrari/Reuters

Market Closes for May 14^th, 2015

Market Index	Close	Change
Dow Jones	18252.24	+191.75
		+1.06%
S&P 500	2120.78	+22.30   +1.06%
NASDAQ	5050.797	+69.105   +1.39%
TSX	15022.60	+41.88
		+0.28%

International Markets

Market Index	Close	Change
NIKKEI	19570.24	-194.48
		-0.98%
HANG SENG	27286.55	+37.27
		+0.14%
SENSEX	27206.06	-45.04
		-0.17%
FTSE 100	6937.04	+23.41
		+0.34%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.805	1.822
CND. 30 Year Bond	2.418	2.427
U.S.    10 Year Bond	2.2354	2.2835
U.S. 30 Year Bond	3.0584	3.0704

Currencies

BOC Close	Today	Previous
Canadian $	0.83388	0.83561
US $	1.19921	1.19674
Euro Rate 1 Euro=		Inverse
Canadian $	1.36866	0.73064
US $	1.14129	0.87620

Commodities

Gold	Close	Previous
London Gold Fix	1225.00	1210.50
Oil	Close	Previous
WTI Crude Future	59.88	60.97

I WOULD RATHER BE POSITIONED AS A PETRIFIED BULL RATHER THAN A PENNILESS BEAR. –JOHN L. PERSON.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, snapping a three-day slide, as consumer shares rallied and raw-materials producers climbed after precious metals extended a rally.

     DHX Media Ltd. jumped 11 percent after reporting third- quarter earnings and sales that topped analysts’ estimates. Silver Standard Resources Inc. added 4.8 percent, while OceanaGold Corp. climbed 4.4 percent to its highest since September after gold hit a 12-week high.

     The Standard & Poor’s/TSX Composite Index rose 47.40 points, or 0.3 percent, to 15,028.12 at 4 p.m. in Toronto. The index had dropped 1.3 percent in the prior three days to the lowest since April 1.

     Alimentation Couche-Tard Inc. rallied 3.1 percent to lead a gain in the consumer staples group. Eight of 10 industries in the S&P/TSX advanced on trading volume 6.2 percent higher than the 30-day average.

     Gold for June delivery added 0.6 percent to $1,225.20 an ounce, the highest level since Feb. 17. Silver climbed to the most expensive since Feb. 4. The metals rallied as the dollar fell to a January low against a basket of 10 currencies, boosting demand for the precious metals as alternative investments.

     Canadian Tire added 1.3 percent after the retailer reported earnings in line with analysts’ estimates. DHX, a television programming producer, surged 11 percent, the most since Nov. 2013. The company’s third-quarter revenue almost tripled to C$85.6 million from C$29 million a year ago.

US

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — U.S. stocks rose for the first time this week, with the Standard & Poor’s 500 Index topping its closing record, as a weaker dollar boosted multinational companies and a bond-market selloff showed signs of easing.

     The Standard & Poor’s 500 Index increased 1 percent at 3:03 p.m. in New York. The gauge has climbed 1.8 percent since falling to a one-month low May 6. Apple Inc. and Microsoft Corp. jumped more than 2 percent. The Bloomberg Dollar Spot Index retreated 0.3 percent, headed for a fifth weekly decline. The yield on 10-year Treasuries fell five basis points to 2.24 percent while German bund rates slipped two basis points. Gold rose to the highest since February.

     The Bloomberg dollar gauge has retreated from its highest level in data back to 2005 as economic reports undermine prospects for higher borrowing costs. An unexpected drop in wholesale prices fueled doubt about whether inflation is high enough to warrant a rate increase. Declines in the currency have generally boosted shares of the biggest U.S. companies on speculation they make American products more attractive.

     “The dollar’s getting a little bit weaker and the bond market is actually rallying a bit as opposed to what’s been happening,” Mark Kepner, an equity trader at Themis Trading LLC, in Chatham, New Jersey, said via phone. “The jobless claims numbers were also good and continue to show the job market is getting better, while PPI numbers didn’t show any worries about inflation.”                        

     The S&P 500’s record was its first since April 24. The gauge fell as much as 1.8 percent through May 6, amid concern the Fed would raise interest rates even with worsening economic data. Stocks have whipsawed between gains and losses in the past six weeks as investors weigh whether a first-quarter slowdown in growth was temporary. It is 0.2 percent higher this week.

     Data Thursday showed fewer Americans than forecast filed for unemployment benefits last week. A report yesterday indicated retail sales stagnated after data Friday showed better-than-forecast hiring.

     The Dow Jones Industrial Average jumped 1 percent, as all but one of its 30 members gained. All but one of the 10 main S&P 500 industries advanced Thursday, with technology shares rallying a second day.

     The dollar had climbed nine straight months through March on speculation the first hike in almost a decade was looming. The greenback weakened to $1.1402 per euro, after dropping 1.2 percent Wednesday. The euro briefly trimmed advances after Mario Draghi said the European Central Bank will implement its bond- buying program “in full.”

     Yields on 30-year Treasuries retreated three basis points to 3.06 percent after surging seven basis points Wednesday. Investors in the U.S. and Europe clamored to buy securities at government debt auctions this week, even as prices of outstanding bonds tumbled in secondary-market trading.

     More than $400 billion has been wiped off the value of global bonds in May, led by a rout in German bunds. The rate on the 10-year bond slipped two basis points to 0.70 percent Thursday, its first decline this week.

     “We’ve seen a reversal in what were some pretty crowded trades,” Carin Pai, director of equity strategy at Fiduciary Trust Company International in New York, said by phone. “With the ECB announcing their QE program there was a lot of pressure on European bond yields.”

     The MSCI Emerging Markets Index gained 0.3 percent. The Hang Seng China Enterprises gauge dropped for a third day, retreating 0.6 percent. The Shanghai Composite Index was little changed. Taiwan’s Taiex Index retreated 1.2 percent, halting a two-day advance.

     Gold futures for June delivery rose 0.6 percent to settle at $1,225.20 an ounce. Earlier, the price reached $1,227.70, the highest for a most-active contract since Feb. 17. Silver futures for July delivery climbed 1.4 percent to $17.465 an ounce. The price reached $17.585, the highest since Feb. 4.

     Oil fell for a second day after the biggest drop in U.S.refinery activity in four months cut crude demand.

 

Have a wonderful evening everyone.

 

Be magnificent!

Not only must we be aware of the nature and structure of the problem

and see it completely,

but meet it as it arises and resolve it immediately,

so that it does not take root in the mind.

If one allows a problem to endure for a month or a day,

or even for a few minutes, it distorts the mind.

Krishnamurti

As ever,

 

Carolann

 

Sometimes one pays most for the things one gets for nothing.

                                            -Albert Einstein, 1879-1955

 

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

I’ve been in Toronto the past few days visiting my clients who live there.  I have been so amazed over the past ten years or so at how vibrant the culinary landscape has evolved to be in that city.  The Daniel Boulud restaurant  in the new Four Seasons Hotel is absolutely fantastic, as is the food served at  his DB Bar.  One of my clients suggested we meet for lunch yesterday at a restaurant near his office on King Street, named Ovest Cucina, where a Sicilian chef prepares an impressive Italian cuisine.  The hospitality industry was hosting their annual Terroir conference, featuring several chefs and food industry notables, and I ducked in for a few of the  sessions.  I especially wanted to see Natalie Crenn, whose Atelier Crenn in San Francisco rates as one of my favorite restaurants in the world.  When she first opened a few years ago, and I had my first sampling of her culinary talent, I suggested to her that she’ll be a 3 Michelin-starred chef some day soon.  It didn’t take long – she now has two Michelin stars, the first female chef in the USA to garner the honor. 

It is wonderful to hear chefs embracing and emphasizing sustainability in food sourcing, which can only occur if farmers, fishers are paid fairly and profitably. 

Chef Gavin Kaysen, formerly of Café Boulud in NYC and now Chef-owner of Spoon and Stable in Minneapolis showed an inspiring  video of winning the Bocuse d’Or.  After placing “an embarrassing 14^th” in the 2007 Bocuse d’Or, he vowed to get US chefs on the podium at this world chef championship for the first time ever.  Along with Thomas Keller, Daniel Boulud and Jerome Bocuse, Kaysen co-launched the Ment’Or Foundation – a support system offering rigorous training and financial assistance for future contenders – and he served as head coach for 2011, 2013, and 2015.  The food shown in the video that they prepared to cinch the award was sublime – unlike anything I’ve ever seen.

The game is lost only when we stop trying. –Mario Cuomo.

PHOTOS OF THE DAY

Worshipers release doves during a mass at the Our Lady of Fatima shrine, in Fatima, central Portugal, Wednesday. Every year on May 12 and 13 tens of thousands of Catholic believers go on pilgrimage to the Fatima sanctuary to pray and attend masses where the apparitions of the Virgin Mary were witnessed by three shepherd children Lucia, Jacinta and Francisco in 1917. Francisco Seco/AP

Sunlight sparkles off the water’s surface as pink flamingos gather in the Camargue regional natural park near Arles, southern France. Situated in the delta of the Rhone River on the French Mediterranean coast, classified by UNESCO, the Camargue Biosphere Reserve is made up of a mosaic of lagoons of fresh, brackish, and saline wetlands, one of the most important in Europe. Jean-Paul Pelissier/Reuters

Market Closes for May 13^th, 2015

Market Index	Close	Change
Dow Jones	18060.89	-7.34
		-0.04%
S&P 500	2097.29	-1.83   -0.09%
NASDAQ	4981.691	+5.502   +0.11%
TSX	14972.80	-70.35
		-0.47%

International Markets

Market Index	Close	Change
NIKKEI	19764.72	+139.88
		+0.71%
HANG SENG	27249.28	-157.90
		-0.58%
SENSEX	27251.10	+373.62
		+1.39%
FTSE 100	6949.63	+15.83
		+0.23%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.822	1.797
CND. 30 Year Bond	2.427	2.393
U.S.    10 Year Bond	2.2835	2.2489
U.S. 30 Year Bond	3.0704	3.0127

Currencies

BOC Close	Today	Previous
Canadian $	0.83561	0.83218
US $	1.19674	1.20167
Euro Rate 1 Euro=		Inverse
Canadian $	1.35777	0.73650
US $	1.13457	0.88139

Commodities

Gold	Close	Previous
London Gold Fix	1210.50	1191.50
Oil	Close	Previous
WTI Crude Future	60.97	60.75

The first human who hurled an insult instead of a stone was the founder of civilization.  –Sigmund Freud, 1856-1939.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell to a six-week low as the nation’s largest railways tumbled and energy producers declined, overshadowing a rally among precious metals producers.

     Canadian National Railway Co. and Canadian Pacific Railway Ltd. retreated more than 2.3 percent to pace declines among industrial shares. Pipeline operators Enbridge Inc. and TransCanada Corp. slipped at least 0.7 percent. Encana Corp. tumbled 2.3 percent after analysts at RBC Capital Markets lowered the stock’s rating to the equivalent of a hold.

     The Standard & Poor’s/TSX Composite Index fell 62.43 points, or 0.4 percent, to 14,980.72 at 4 p.m. in Toronto. The index has dropped 1.3 percent in three days to the lowest since April 1.

     Canadian National Railway declined 3.2 percent and Canadian Pacific Railway lost 2.4 percent as industrial stocks fell lost 1.8 percent as a group, most in the S&P/TSX. Eight of 10 industries in the benchmark equity gauge retreated on trading volume 6.5 percent higher than the 30-day average.

     Railway commodity carloads tumbled 7.5 percent in the week ended May 9 from year-ago levels according to AAR data, Bloomberg Intelligence analysts Talon Custer and Lee Klaskow said in a report. Canadian Pacific Railway traffic dropped 13 percent amid weakness in coal and agriculture shipments, the report showed.

     Trican Well Service Ltd. plunged 14 percent after the company cut 2,000 jobs, suspended its dividend and said there is significant doubt the company can “continue as a going concern” after forecasting a potential breach of an interest coverage ratio covenant.

     Gold futures for June delivery jumped to a five-week high as stalling U.S. retail sales revived speculation a sputtering economy will spur the Federal Reserve to delay raising interest rates.

     Kirkland Lake Gold Inc. added 1.9 percent after meeting its 2015 output guidance and raised its forecast for 2016.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks closed little changed as corporate deal activity was overshadowed by concern a fixed- income selloff is not done, and weaker-than-forecast retail sales disappointed investors who were expecting a rebound from a winter slowdown.

     Owens-Illinois Inc. climbed 9.2 percent after a pact to buy the food-and-beverage glass business of Vitro SAB. Williams Cos. rallied 6.2 percent as it plans to buy the 40 percent of Williams Partners LP it doesn’t already own. Pall Corp. added 4.4 percent after its $13.8 billion deal with Danaher Corp. Retailers’ shares slipped after the sales data, led lower by Macy’s Inc.

     The Standard & Poor’s 500 Index fell less than 0.1 percent to 2,098.48 at 4:00 p.m. in New York, as the benchmark dropped for a third day, its longest losing streak in six weeks. The Dow Jones Industrial Average declined 7.74 points, or less than 0.1 percent, to 18,060.49. The Nasdaq Composite Index increased 0.1 percent. About 6.2 billion shares traded hands Wednesday, 3.7 percent below the three-month average.

     “We’ve been at the mercy of the bond market because of a news vacuum with corporate earnings finished and a light economic calendar, but equities have been remarkably resilient in the face of yields and uncertainty about when the Fed will pull the trigger,” said Kelly Bogdanov, the San Francisco-based vice president and portfolio analyst at RBC Wealth Management.

     The S&P 500 slid Tuesday as a rout in fixed-income markets spread to equities, with the 10-year Treasury note’s yield reaching the highest since November before slipping. Yield on the benchmark notes rose three basis points to 2.28 percent Wednesday.

     The unchanged April retail sales reading followed a revised 1.1 percent gain in March that was the biggest in a year and larger than previously estimated. Economists surveyed by Bloomberg called for a 0.2 percent gain in April. Data are also due later this week on consumer sentiment, jobless claims and industrial production.

     Concern the Federal Reserve would raise interest rates even with worsening economic data and predictions for an earnings slump have whipsawed stocks between gains and losses in the past five weeks. The S&P 500 fell for the past two days after jumping the most since March on Friday amid data that showed hiring bounced back in April from a winter slowdown.

     “We had a couple down days and now all this bad data just pushes out the Fed longer to tighten,” said Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC. NorthCoast has $3 billion under management. “It’s going to be range-bound trading until we get something that will break us through.”

     The S&P 500 is trading within its tightest trading range to start a year in almost a decade: roughly 125 points. The peak- to-trough move of 6.3 percent is the smallest at this point of any year since 2006. The gauge is 0.9 percent below its April 24 record.

     Most companies in the benchmark have already reported results this earnings season, with 72 percent beating estimates. Analysts now project profit at S&P 500 members grew 0.2 percent in the first quarter, reversing earlier predictions for a decline. Their March estimates called for a 5.8 percent drop.

     The Chicago Board Options Exchange Volatility Index fell 0.7 percent to 13.76, after ending little changed Tuesday. The gauge, known as the VIX, is on track for its third straight weekly gain for the first time since September. Six of the S&P 500’s 10 main groups declined Wednesday, led by energy, consumer discretionary and utilities shares. Technology companies advanced the most, up 0.5 percent.                      

     Semiconductors rebounded from a 0.9 percent drop Tuesday, lifting tech shares. Micron Technology Inc. and Intel Corp. rose more than 1.1 percent. Microsoft Corp. added 0.6 percent after Deutsche Bank analyst Karl Keirstead upgraded shares to buy from hold, citing “relatively cheap” valuation with more positive than negative catalysts.

     Qualcomm Inc. advanced 1.4 percent as the chipmaker plans to tap the corporate bond market for the first time, with proceeds to be used for general corporate purposes, including financing a capital return program and acquisitions.

     Owens-Illinois rallied 10 percent, the biggest jump since 2009, after the world’s largest maker of glass containers agreed to buy Vitro’s business for about $2.15 billion to extend its reach in Mexico.

     Pall Corp. added 4.4 percent to its 19 percent rally Tuesday after Danaher agreed to buy the water-systems maker for $13.8 billion. It’s Danaher’s biggest-ever acquisition, and it plans to split itself into two dependent, publicly traded companies.

     Williams Partners jumped 21 percent, the most ever, after Williams Cos. agreed to buy the 40 percent of the pipeline company it doesn’t already own for $13.8 billion, simplifying its corporate structure in a bid to reduce taxes, increase payouts and accumulate cash for expansion.

     “There’s an awful lot of M&A and it’s certainly helping from a confidence level,” said Mark Spellman, a portfolio manager who helps oversee $4.2 billion at Alpine Funds in Purchase, New York. “If they thought there was a recession or profit problem in the near-term they probably wouldn’t do that.”

     Macy’s slumped 2.5 percent after the largest U.S. department-store chain reported first-quarter earnings that trailed analysts’ estimates as bad weather in Northeastern states and product delays at the West Coast ports hurt sales. Ralph Lauren Corp. sank 3 percent, the most in three months, and Fossil Group Inc. fell 2.1 percent to its lowest since 2012 to pace a retreat in consumer discretionary shares.                          

     DuPont Co. lost 7.4 percent, the biggest drop since 2012, as investors rejected investor Nelson Peltz’s attempt to get on the chemical maker’s board, the first failure for an activist campaign mounted by his firm Trian Fund Management since it was founded a decade ago.

     Union Pacific Corp., CSX Corp. and Kansas City Southern declined more than 1.5 percent, leading a 1 percent retreat in the Dow Jones Transportation Average which fell to a six-month low. Union Pacific slid to its lowest level since October as Wolf Research LLC analyst Scott Group cut second-quarter profit estimates for railroads, citing lower coal and grain volumes.

     The utilities group fell 1.1 percent to a two-month low as rising yields on Treasuries make the sector’s 3.7 percent dividend payout less attractive. Edison International Inc. sank 1.1 percent to an almost seven-month low.

 

Have a wonderful evening everyone.

 

Be magnificent!

All the responsibility of good and evil is on you.  This is the great hope.

What I have done, that I can undo.

Swami Vivekananda

As ever,

 

Carolann

 

Adventure is worthwhile in itself.

          -Amelia Earhart, 1897-1937

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A worker sets up a giant canvas of the official poster for the 68th Cannes Film Festival, featuring the late actress Ingrid Bergman, at the Festival Palace in Cannes, Southern France, Monday. The festival will run from May 13 to 24. Regis Duvignau/Reuters

Britain’s Prince Harry sits in on a class during his visit to the Halfmoon Bay school on Stewart Island in southern New Zealand Monday.Robyn Edie/Reuters

Market Closes for May 12^th, 2015

Market Index	Close	Change
Dow Jones	18068.23	-36.94
		-0.20%
S&P 500	2099.12	-6.21   -0.29%
NASDAQ	4976.188	-17.385   -0.35%
TSX	15043.15	-109.49
		-0.72%

International Markets

Market Index	Close	Change
NIKKEI	19624.84	+3.93
		+0.02%
HANG SENG	27407.18	-311.02
		-1.12%
SENSEX	26877.48	-629.82
		-2.29%
FTSE 100	6933.80	-96.05
		-1.37%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.797	1.817
CND. 30 Year Bond	2.393	2.402
U.S.    10 Year Bond	2.2489	2.2779
U.S. 30 Year Bond	3.0127	3.0401

Currencies

BOC Close	Today	Previous
Canadian $	0.83218	0.82615
US $	1.20167	1.21043
Euro Rate 1 Euro=		Inverse
Canadian $	1.34717	0.74230
US $	1.12109	0.89199

Commodities

Gold	Close	Previous
London Gold Fix	1191.50	1189.25
Oil	Close	Previous
WTI Crude Future	60.75	59.25

Market Commentary:

Canada

By Joseph Ciolli and Eric Lam

     (Bloomberg) — Canadian stocks declined for a second day, joining a slide among global equities, as transportation companies and banks led losses.

     Canadian National Railway Co. and Canadian Pacific Railway Ltd. slumped at least 2.3 percent to pace declines among industrial stocks. Royal Bank of Canada, the nation’s largest lender, dropped 0.6 percent. Valeant Pharmaceuticals International Inc., an investment target of hedge-fund manager Bill Ackman, slid 1.2 percent. Air Canada jumped 3.8 percent after reporting profit that topped estimates.

     The Standard & Poor’s/TSX Composite Index lost 109.49 points, or 0.7 percent, to 15,043.15 at 4 p.m. in Toronto. The slide trimmed its advance in 2015 to 2.8 percent.

     Global stocks joined a selloff in bonds from Japan to Europe as the MSCI World Index of developed markets slipped 0.3 percent for a second day of losses. The U.S. benchmark S&P 500 dropped 0.3 percent in New York.

     All 10 of the main groups in the S&P/TSX declined on trading volume 3 percent higher than the 30-day average. Financial companies, which account for about one-third of the broader index by weighting, fell 0.7 percent.

     TMX Group Ltd., operator of the Toronto Stock Exchange, sank 5.1 percent for the biggest drop since October 2013, after reporting earnings short of analysts’ estimates.

     Technology stocks slid for the first time in four days as BlackBerry Ltd. fell 3.2 percent.

     Valeant started exerting influence over the Canadian equity gauge, with its 85 percent surge in the 12 months to May 8 accounting for 60 percent of the index’s advance, according to data compiled by Bloomberg. Ackman’s Pershing Square Capital Management is the drugmaker’s second-biggest shareholder.

     Air Canada climbed after reporting first-quarter profit that beat analysts’ estimates as the country’s biggest carrier benefited from a drop in fuel prices and revenue advanced.

US

By Jeremy Herron

     (Bloomberg) — U.S. stocks fell, as global equities joined a selloff in bonds from Japan to Europe. Treasuries recovered from earlier losses amid demand for the securities at a government auction, while the dollar weakened.

     The Standard & Poor’s 500 Index dropped 0.3 percent by 4 p.m. in New York. The gauge briefly erased a 0.9 percent slide as yields on the 10-year Treasury note retreated from the highest level since November to decline three basis points to 2.25 percent. The Stoxx Europe 600 Index lost 1.3 percent, while emerging-market shares declined 0.7 percent. The Bloomberg Dollar Spot Index slid 0.5 percent. Oil rallied.

     Treasuries stabilized a day after the biggest drop in 30- year bonds since 2013 as an auction of three-year notes drew the strongest bidding since 2009, and as traders found value in debt. A global bond rout had wiped out more than $450 billion from the market. The S&P 500 ended Friday two points shy of a record before two days of losses at the start of this week.

     “When you have stocks at the high end of the historical range you need better news than what we have,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts. “This rise in rates isn’t coming from a better economy or a fundamental reason.”

     U.S. benchmark 10-year yields touched 2.36 percent before reversing, while Treasury 30-year rates fell three basis points, or 0.03 percentage point, to 3.01 percent. Thirty-year yields jumped 14 basis points on Monday.

     The global bond selloff has intensified during the past three weeks as traders exited positions. Investors returned to the U.S. market a day after the biggest drop in two months.

     “We got to yield levels where guys were happy to take their paper back,” said Thomas Tucci, managing director and head of Treasury trading in New York at CIBC World Markets Corp.

     The S&P 500 nearly erased its losses for the day as Treasuries reached their highs. An index of oil and gas producers was the only one of 10 main groups to advance as West Texas Intermediate crude climbed above $60 a barrel.

     Federal Reserve Bank of San Francisco President John Williams said Tuesday that he is in “wait and see mode” headed into the next meeting on interest rates in June. Data are due later this week on retail sales, industrial production and consumer sentiment.

     The drop in Treasuries had stabilized last week before resuming Monday amid selling in Europe. Those losses spread to Asia Tuesday, with Japanese 10-year yields rising six basis points to 0.45 percent. German yields have advanced in 11 of the past 12 sessions, climbing 52 basis points to 0.68 percent.

     The selling in bonds also spread to equities, with the MSCI All-Country World Index slipping 0.3 percent Tuesday. All but two of 18 main western-European indexes retreated. Germany’s DAX Index tumbled 1.7 percent, while France’s CAC 40 Index Spain’s and IBEX 35 Index slipped at least 1 percent.

     “The weakness today is broad-based,” said Espen Furnes, who helps oversee $85 billion at Storebrand Asset Management in Oslo. “You can’t hide the fact that equity markets have had an excellent start to the year. In that context I find it reasonable that some investors wish to take some profits.”

     Greece’s ASE Index gained 1.4 percent. The country has readied a repayment to the International Monetary Fund, officials said, while euro-area nations warned Greece still faces a battle to release financial aid.

     The dollar’s decline on Tuesday wiped out all of its gains from the previous day. The euro rallied versus most of its 16 major peers, adding 0.3 percent to 134.41 yen. The greenback was down 0.2 percent at 119.87 yen.

     Crude oil climbed after OPEC boosted its global oil demand outlook and the dollar weakened.

     WTI for June delivery advanced 2.5 percent to settle at $60.75 a barrel in New York. Prices have increased 14 percent this year. Brent gained 3 percent to close at $66.86 a barrel in London.

     U.S. shale oil output fell by about 1 percent this month and the decline will gather momentum in June, the Energy Information Administration said on Monday.

     Soybean futures slid 1.9 percent Tuesday after the U.S. government predicted stockpiles of the crop will reach a record. The Bloomberg Commodity Index added 1.2 percent, its biggest one-day gain since April 15.

 

Have a wonderful evening everyone.

 

Be magnificent!


“Perseverance is the hard work you do after you get tired of doing the hard work you already did.” Newt Gingrich 

As ever,

 

Karen

 

“There is only one happiness in this life, to love and be loved.” George Sand

 

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

The Villarrica Volcano lights up the sky Sunday night near Pucon town, Chile. Villarrica, located near the popular tourist resort of Pucon, is among the most active in South America. Cristobal Saavedra/Reuters

Workers prepare incense to hang from the ceiling of a temple as they get ready for a ceremony to celebrate the birth of sea goddess Mazu in Shenzhen, Guangdong province, China, Sunday. Reuters

Market Closes for May 11^th, 2015

Market Index	Close	Change
Dow Jones	18105.17	-85.94
		-0.47%
S&P 500	2107.16	-8.94   -0.42%
NASDAQ	4993.574	-9.975   -0.20%
TSX	15152.06	-17.96
		-0.12%

International Markets

Market Index	Close	Change
NIKKEI	19620.91	+241.72
		+1.25%
HANG SENG	27718.20	+140.86
		+0.51%
SENSEX	27507.30	+401.91
		+1.48%
FTSE 100	7029.85	-16.97
		-0.24%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.817	1.695
CND. 30 Year Bond	2.402	2.295
U.S.    10 Year Bond	2.2779	2.1406
U.S. 30 Year Bond	3.0401	2.8957

Currencies

BOC Close	Today	Previous
Canadian $	0.82615	0.82690
US $	1.21043	1.20933
Euro Rate 1 Euro=		Inverse
Canadian $	1.34996	0.74077
US $	1.11527	0.89664

Commodities

Gold	Close	Previous
London Gold Fix	1189.25	1186.00
Oil	Close	Previous
WTI Crude Future	59.25	59.39

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, halting a two-day advance, as energy companies retreated with the price of oil amid speculation global oversupply will persist.

     Canadian Energy Services & Technology Corp. sank 3.3 percent as energy shares declined 0.7 percent as a group. Manulife Financial Corp., the nation’s largest insurer, added 0.4 percent to close at the highest level since 2009.

     The Standard & Poor’s/TSX Composite Index fell 17.38 points, or 0.1 percent, to 15,152.64 at 4 p.m. in New York, paring an earlier decline of 0.4 percent in the final hour of trading. The gauge slide cut its advance in 2015 to 3.6 percent.

     Six of 10 industries in the S&P/TSX advanced on trading volume 15 percent lower than the 30-day average. Health-care shares climbed 1 percent as Valeant Pharmaceuticals International rose 1.1 percent.

     Energy shares slid the most in the index, as oil dropped a third day in New York. U.S. crude inventories remain more than 100 million barrels above the five-year average for this time of year, government data show.

     China’s central bank cut interest rates for the third time in six months, reducing the one-year lending rate 0.25 percentage points to 5.1 percent and the one-year deposit rate by the same amount to 2.25 percent, effective Monday. The bank will also raise the limit on what banks can pay savers.

     Imports and exports for the world’s second-largest economy and Canada’s second-biggest trading partner after the U.S. declined in April, underscoring China’s struggle to match its 2015 growth target of 7 percent.

     AutoCanada Inc. jumped 7.8 percent after rallying the most since November 2009 on May 8, after reporting earlier it was in talks with acquisition targets. The stock has surged 29 percent in two sessions, the biggest rally since 2009.

US

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — U.S. stocks fell, halting a two-day advance as energy shares slid with crude oil. Treasuries tumbled the most in two months, while European government debt resumed a selloff amid doubt Greece can resolve its debt problems.

     The Standard & Poor’s 500 Index lost 0.5 percent by 4 p.m. in New York, after closing Friday two points shy of a record. Noble Energy Inc. sank 6.2 percent to lead energy producers to their worst day since January. The euro fell 0.4 percent to $1.1155 in a third day of declines. German and Italian bond yields climbed, and rates on 10-year Treasury notes gained 13 basis points to 2.28 percent, the biggest climb since March 6.

     U.S. stocks stalled near all-time highs, after rallying the most in two months on Friday, as oil fell for a third day. Policy makers could raise key rates at any meeting, depending on economic data, Federal Reserve Bank of San Francisco President John Williams reiterated on CNBC Monday. The next major report is April retail sales on Wednesday. German bunds and other euro- region sovereign debt declined as China cut interest rates.

     “There’s a little malaise in the stock market after the reaction to the last jobs report and there’s no clear direction from the data,” Kevin Mahn, president of Parsippany, New Jersey-based Hennion & Walsh Asset Management Inc., said by phone. “The best way to characterize the market right now is trendless volatility.”

     Concern the Fed would raise borrowing costs, along with forecasts for a slump in corporate profits, have whipsawed stocks between gains and losses during the past five weeks.

     Almost $100 million worth of options pegged to volatility in U.S. equities changed hands in a split second Monday in Chicago, transactions that together would represent more than half a normal day’s volume.

     About 40 different trades went off at 12:16:04 p.m., encompassing contracts that gain in value should the Chicago Board Options Exchange Volatility Index rise over the next few months, according to options data compiled by Bloomberg. The four biggest were each more than 130,000 contracts. The index known as the VIX climbed 7.7 percent Monday.

     All of the 10 main S&P 500 groups retreated Monday, following Friday’s 1.4 percent advance, the biggest one-day gain since March 16. Energy shares sank 2.1 percent, the most since January.

     Treasuries resumed declines after stabilizing Friday following a global bond rout that sent 10-year yields to a 2015- high of 2.31 percent. The notes fell Monday for the first time in three days as the U.S. prepared to auction $64 billion in coupon-bearing debt.

     The drop was also propelled by the ongoing slump in bonds from Germany and other euro-region nations. Spain’s 10-year bond yield rose eight basis points, or 0.08 percentage point, to 1.75 percent, and German 10-year bund yields increased six basis points to 0.61 percent.

     The euro extended its slide from a 2 1/2-month high as the region’s finance ministers met on aid for Greece before the country’s debt-repayment deadline Tuesday.

     Greece — which needs to pay about 750 million euros ($837 million) to the International Monetary Fund — dodged an economic bullet by persuading an increasingly skeptical German- led bloc of creditors that it is serious about delivering the tight budget policies needed to escape a default.

     “The to-ing and fro-ing on Greece, given they’ve got that payment to the IMF due very soon,” is weighing on the euro, said Joseph Capurso, a strategist at Commonwealth Bank of Australia in Sydney. Uncertainty over Greece’s future is set to continue as negotiations will probably be “kicking the can down the road for a while longer,” he said.

     Greece’s ASE Index of stocks fell 2.5 percent, for the biggest decline among western-European markets. Ten-year bond yields increased 29 basis points to 10.96 percent.

     Gains in retailers and miners sent European stocks up for a third day. Delhaize Group jumped 15 percent and Royal Ahold NV jumped 5.5 percent after reports that the companies are in early stages of merger talks.

     Commodity producers climbed after the People’s Bank of China lowered the one-year lending rate and the one-year deposit rate by 0.25 percentage point as it ratcheted up support for the economy.

     The Shanghai Composite Index advanced 3 percent, posting its largest two-day gain since January. Hong Kong’s Hang Seng China Enterprises Index climbed 1.3 percent, while the MSCI Emerging Markets Index slipped 0.1 percent.

     Copper futures fell the most in more than two weeks amid concern the rate cut won’t be enough to boost demand in China, the world’s biggest consumer of industrial metals.

     Oil dropped a third day amid speculation that a global oversupply will persist. Brent crude futures declined 0.7 percent to settle at $64.91 a barrel in London, and West Texas Intermediate oil for June delivery dropped 0.2 percent to $59.25 a barrel on the New York Mercantile Exchange.

     New Zealand’s dollar tumbled 2.1 percent versus the dollar and sank to its weakest level since January against its Australian counterpart as the number of banks predicting the Reserve Bank of New Zealand will cut rates mounted.

 

Have a wonderful evening everyone.

 

Be magnificent!

“Be true to yourself. Make each day a masterpiece. Help others. Drink deeply from good books. Make friendship a fine art. Build a shelter against a rainy day.” John Wooden

As ever,

 

Karen

 

“We tend to forget that happiness doesn’t come as a result of getting something we don’t have, but rather of recognizing and appreciating what we do have.” Frederick Keonig

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

1945, VE DAY: Victory in Europe.

On this day in 1963, Scottish actor Sean Connery, relatively unknown at the time, starred in his first James Bond movie “Dr. No.” He went on to appear in six more 007 films over the years, including “From Russia With Love,” “Goldfinger” and “Diamonds Are Forever.”

Once

  -by Saskia Hamilton

    In the night, the bed was as long
as the hours, the hours were as long as the road
or the future, the past was not our destiny,
the foreboding or foretelling was left on the shelves to the longplaying records
we’d switch on for the warmth of the scratches
that pocked the music like rain, as the needle
wandered all that black circumference –

PHOTOS OF THE DAY

The results of exit polls are projected onto the side of Broadcasting House, the headquarters of the BBC, in central London after voting closed in Britain’s general election Friday. Eddie Keogh/Reuters

Bobo skateboards past office workers during evening rush hour in Singapore’s central business district Friday. The four-year-old British bulldog, who can skateboard independently, was performing as part of a promotion for a luxury pet hotel and resort. Edgar Su/Reuters

Market Closes for May 8^th, 2015

Market Index	Close	Change
Dow Jones	18191.11	+267.05
		+1.49%
S&P 500	2116.59	+28.59   +1.37%
NASDAQ	5003.551	+58.006   +1.17%
TSX	15172.57	+83.75
		+0.56%

International Markets

Market Index	Close	Change
NIKKEI	19379.19	+87.20
		+0.45%
HANG SENG	27577.34	+287.37
		+1.05%
SENSEX	27105.39	+506.28
		+1.90%
FTSE 100	7046.82	+159.87
		+2.32%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.695	1.748
CND. 30 Year Bond	2.295	2.331
U.S.    10 Year Bond	2.1406	2.1800
U.S. 30 Year Bond	2.8957	2.9105

Currencies

BOC Close	Today	Previous
Canadian $	0.82690	0.82569
US $	1.20933	1.21110
Euro Rate 1 Euro=		Inverse
Canadian $	1.35547	0.73775
US $	1.12085	0.89218

Commodities

Gold	Close	Previous
London Gold Fix	1186.00	1187.00
Oil	Close	Previous
WTI Crude Future	59.39	58.94

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day, paring a weekly loss, after jobs data from Canada and the U.S. spurred speculation central banks won’t raise interest rates soon.

     Royal Bank of Canada and Toronto-Dominion Bank increased at least 0.4 percent to pace gains among the nation’s largest lenders. Gran Tierra Energy Inc. added 1.6 percent after agreeing to demands from investor West Face Capital Inc. to expand the company board and appoint a new chief executive officer.

     The Standard & Poor’s/TSX Composite Index rose 81.20 points, or 0.5 percent, to 15,170.02 at 4 p.m. in Toronto. The gauge has retreated 1.1 percent this week, for a second straight week of declines.

     “The bounce in oil has bought us some time,” said Frank Maeba, managing partner at Breton Hill Capital Ltd. in Toronto. His firm manages about C$930 million ($768 million). “Longer term the central bank will take a more dovish stance. It’s reassessing information as we go on, but in general the trajectory is keeping easing into the future.”

     Canada lost 19,700 jobs in April on the biggest drop in part-time work in four years. Employment fell the most since August and the jobless rate remained at 6.8 percent for a third month, Statistics Canada said Friday in Ottawa. Economists surveyed by Bloomberg News projected a 5,000 job decrease and the jobless rate to rise to 6.9 percent.

     U.S. payrolls rebounded in April with a 223,000 net increase in employment following the smallest gain since June 2012 in March. The jobless rate fell to the lowest since May 2008. The rebound in hiring bolsters optimism economic growth is accelerating in the U.S. at a pace slow enough to keep the Federal Reserve from raising interest rates in June.

     AutoCanada Inc. jumped 20 percent, the biggest gain since November 2009, as consumer discretionary stocks climbed 1 percent as a group. Trading volume was 7.1 percent higher than the 30-day average as eight of 10 industries advanced.

     AutoCanada said it was in talks with acquisition targets and in position to report two deals in 45 days, while also reporting first-quarter profit ahead of estimates.

     Energy companies jumped 1.3 percent for the biggest gain among groups. Crew Energy Inc. and Bonavista Energy Corp. climbed more than 11 percent to lead the advance amid a 0.8 percent rebound in oil.

US

By Oliver Renick and Lu Wang

     (Bloomberg) — U.S. stocks rose the most since March after a rebound in hiring last month bolstered optimism that economic growth is accelerating, but not fast enough to warrant higher interest rates in June.

     Raw-material shares rallied to a two-month high after a jump in construction jobs. Home Depot Inc. and Whirlpool Corp. advanced at least 1.7 percent. Lennar Corp.’s 2.2 percent climb led gains among homebuilders. Microsoft Corp. rose 2.3 percent, pacing an increase in technology stocks for a second day. Visa Inc. surged 4.3 percent amid a report that it’s in talks to buy its former European subsidiary for as much as $20 billion.

     The Standard & Poor’s 500 Index gained 1.4 percent to 2,116.10 at 4 p.m. in New York, erasing a weekly decline and closed within two points of its record set last month. The Dow Jones Industrial Average jumped 267.05 points, or 1.5 percent, to 18,191.11. The Nasdaq Composite Index added 1.2 percent.

     “This is just-right jobs for stocks,” said Darrell Cronk, president of Wells Fargo Investment Institute in New York. “We hit it right where we needed to be, not too much and not too little. You want an economy growing north of 200,000 jobs, but if you get closer to 300,000 you start to have conversations about inflationary pressures and the economy heating up too fast, so this number is perfect.”

     The S&P 500 had slipped 1.8 percent through Wednesday from its all-time high set on April 24th, amid concerns that the economy was slowing as the Federal Reserve considers raising interest rates. About 6.6 billion shares traded hands on U.S. exchanges, roughly the average in the past three months.                          

     The 223,000 net increase in April employment followed a March gain that was the smallest since June 2012. The jobless rate fell to 5.4 percent, the lowest since May 2008. The job growth and steadily rising wages may keep the Fed on track to raise its benchmark interest rate later this year.

     Wage growth remains limited, though, with average hourly earnings rising 0.1 percent after a revised 0.2 percent March gain that was weaker than initially reported. Hourly pay was up 2.2 percent last month from a year earlier.

     While a futures-based measure indicates the Fed remains on track to raise rates this year, the data make a hike in June less likely.

     “The jobs report is not indicating the economy is overheating and it’s certainly not indicating the economic environment is further on the decline,” said Michael Arone, the Boston-based chief investment strategist at State Street Global Advisors’ U.S. Intermediary Business. The firm oversees $2.4 trillion. “You’re feeling a big sigh of relief in the capital markets.”                     

     Fed policy makers are monitoring labor data to help determine when to raise borrowing costs after growth slowed in the first quarter. Fed Bank of Chicago President Charles Evans said this week the central bank should wait for more evidence wages are advancing before boosting interest rates.

     Companies in the S&P 500 are beating earnings estimates and analysts have reversed their predictions for a slump in corporate profits. Analysts now project a first-quarter gain of 0.2 percent, compared with a 5.6 percent drop at the start of the earnings season. They still predict declines in the second and third quarter.

     Hedge-fund manager Daniel Loeb said he expects that rising corporate profits will present opportunities for stock investments even if the Fed lifts rates. “We think that equities are going to trade on prospective earnings appreciation,” Loeb said Friday in a conference call discussing results at Third Point Reinsurance Ltd., the Bermuda-based reinsurer that he co-founded.

     A rally in U.K. stocks today pushed European shares to their biggest gain of 2015 after a surprise election victory for the Conservatives kept David Cameron on course to return as Britain’s prime minister. The Stoxx Europe 600 Index climbed 2.9 percent.                        

     The Chicago Board Options Exchange Volatility Index sank 15 percent to 12.86, its biggest drop since December. The gauge, known as the VIX, still rose for a second straight week.

     All 10 of the S&P 500’s main groups rose today, led by health-care, raw-material and energy companies. Seven of the groups rallied more than 1 percent.

     Martin Marietta Materials Inc. climbed 2.9 percent to a more than seven-year high. The producer of ingredients for concrete helped lead the raw-materials group to a two-month high after construction companies last month added the most workers since January 2014. DuPont Co. and Dow Chemical Co. added more than 2.3 percent.

     Biotechnology shares were top performers in health-care, as the Nasdaq Biotechnology Index climbed for a third day, up 2.3 percent. Health-care companies in the S&P 500 advanced 1.6 percent as Biogen Inc. added 4 percent, its best gain since March, after saying it will buy back $5 billion in stock.

     Boeing Co. rose 2.8 percent, the most since Feb. 20, to help lead industrials higher. Airlines rallied for a third day as Southwest Airlines Co. and Delta Air Lines Inc. increased at least 1.7 percent.

     Among consumer shares, travel-related companies paced the rally. Cruise lines Royal Caribbean Cruises Ltd. and Carnival Corp. climbed more than 3.7 percent, the most in more than a month. TripAdvisor Inc. jumped 4.4 percent and Marriott International Inc. increased 2.3 percent.                         

     AOL soared 10 percent, the most in 16 months, after quarterly profit beat analysts’ estimates as the owner of the Huffington Post and other websites increased global advertising revenue.

     Monster Beverage Corp. fell 10 percent, the biggest drop since October 2012, as first-quarter profit and sales trailed analysts’ estimates.

     Nvidia Corp. lost 7.4 percent, the most since August 2011, as the largest maker of chips for computer-graphics cards gave a forecast for second-quarter sales that fell short of analysts’ estimates, hurt by the persistent slump in PC demand.
 

Have  a fantastic weekend everyone.

 

Be magnificent!

The idea of a duty to understand violence engenders for me

a great vitality and passion for knowledge.

But to transcend this violence, I need not repress it, nor deny it, nor say to myself

It has become a part of me, I can do nothing about it; or, I wish to reject it.

I must observe it, study it, enter into it intimately,

and for that purpose I need neither condemn it nor justify it.

And yet, it is this that we do.

I would ask you, then, to suspend for an instant your judgments on the subject.

Krishnamurti

As ever,

 

Carolann

 

It is better to be a lion for a day than a sheep all your life.

                                       -Elizabeth Kenny, 1880-1952

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day 21 years ago, Norway’s famous painting, “The Scream” by Edvard Munch, was recovered nearly three months after it was stolen from a museum in Oslo.

Just back from  an investment conference in New York which was very useful and informative.  New York is as crazy busy, exciting as ever….lots of catching up to do today!

PHOTOS OF THE DAY

Groom Roberto Luna washes the face of Dortmund, third-place finisher in the Kentucky Derby, after a morning jog at Churchill Downs in Louisville, Ky., Thursday. Dortmund, like stablemate American Pharoah, the Kentucky Derby winner, continue to train at Churchill Downs before shipping to Baltimore next week for the Preakness Stakes on May 16th. Garry Jones/AP

A man works out on a punch bag in East Hull Boxing Club, which is being used as a polling station, as people arrive to cast their votes during the British election in Hull, Thursday. Darren Staples/Reuters

Market Closes for May 7^th, 2015

Market Index	Close	Change
Dow Jones	17924.06	+82.08
		+0.46%
S&P 500	2088.00	+7.85   +0.38%
NASDAQ	4945.543	+25.898   +0.53%
TSX	15088.82	+64.93
		+0.43%

International Markets

Market Index	Close	Change
NIKKEI	19291.99	-239.64
		-1.23%
HANG SENG	27289.97	-350.94
		-1.27%
SENSEX	26599.11	-118.26
		-0.44%
FTSE 100	6886.95	-46.79
		-0.67%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.748	1.821
CND. 30 Year Bond	2.331	2.404
U.S.    10 Year Bond	2.1800	2.2431
U.S. 30 Year Bond	2.9105	2.9929

Currencies

BOC Close	Today	Previous
Canadian $	0.82569	0.83051
US $	1.21110	1.20407
Euro Rate 1 Euro=		Inverse
Canadian $	1.36294	0.73376
US $	1.12532	0.88864

Commodities

Gold	Close	Previous
London Gold Fix	1187.00	1194.25
Oil	Close	Previous
WTI Crude Future	58.94	60.93

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose from a one-month low, snapping a two-day slide, as Linamar Corp. surged to a record and Bombardier Inc. climbed the most in two years, offsetting losses among energy producers.

     Bombardier added 6.7 percent as the company unveiled plans for an initial offering of its train unit to pay down debt. Linamar advanced 14 percent after reporting better-than-forecast earnings. Gran Tierra Energy Inc. lost 4.5 percent after reporting a first-quarter loss. Penn West Petroleum Ltd. and MEG Energy Corp. retreated more than 5.4 percent to pace declines among oil and gas producers.

     The Standard & Poor’s/TSX Composite Index rose 64.93 points, or 0.4 percent, to 15,088.82 at 4 p.m. in Toronto, rebounding from an April 1 low. The gauge has advanced 3.1 percent this year.

     Linamar rallied to an all-time high as consumer discretionary stocks jumped 1.9 percent as a group, most in the S&P/TSX. Eight of 10 industries in the benchmark equity gauge advanced on trading volume 43 percent higher than the 30-day average.

     Suncor Energy Inc., the nation’s largest oil producer, dropped 1.9 percent for a sixth straight loss, the longest streak since October, and Crescent Point Energy Corp. dropped 2.6 percent as energy stocks fell a third day. The S&P/TSX Energy Index has plunged 4.9 percent in that period.

     The New Democratic Party, led by Rachel Notley, ended a 44- year Progressive Conservative dynasty by winning a majority of districts in elections Tuesday.

     The NDP promises to boost corporate taxes, review the government’s take of energy revenue, scale back advocacy for pipelines and phase out coal power more quickly. U.S. benchmark crude futures also fell for the first time in three days in New York.

US

By Joseph Ciolli

     (Bloomberg) —  U.S. stocks advanced, after the Standard & Poor’s 500 Index fell to its lowest in a month, as Yahoo! Inc. led a rebound in technology shares before Friday’s labor report.

     Alibaba Group Holding Inc. jumped 7.5 percent after reporting a 45 percent increase in quarterly revenue. Yahoo, which owns a stake in Alibaba, added 5.3 percent. Microsoft Corp. climbed after its steepest drop in six weeks. Whole Foods Market Inc. and Keurig Green Mountain Inc. lost at least 9.1 percent after their quarterly reports disappointed investors.

     The S&P 500 added 0.4 percent to 2,088 at 4 p.m. in New York, near its average price during the past 50 days. The Dow Jones Industrial Average gained 82.08 points, or 0.5 percent, to 17,924.06. The Nasdaq Composite Index climbed 0.5 percent. About 7 billion shares traded hands on U.S. exchanges, 7 percent above the three-month average.

     “We’re seeing a rebound off some selling that took place recently,” said Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates in Bethlehem, Pennsylvania. “The next trend will be set by whatever the employment numbers dictate tomorrow.”

     U.S. stocks fell yesterday, dragged lower after Federal Reserve Chair Janet Yellen warned of high equity market valuations and after a private report that showed hiring slowed.

     Stocks bounced back after a two-day selloff that sent the number of equities trading above their 50-day moving average to the lowest level in three months, data compiled by Bloomberg show. At yesterday’s close, 200 members in the S&P 500 traded above the threshold, which is viewed by analysts to gauge a security’s momentum. That’s the lowest reading since Jan. 30.

     Fewer Americans than forecast filed applications for unemployment benefits last week, dropping the average over the past month to the lowest in 15 years. Investors are looking to Friday’s government payroll numbers for clues on the American economy’s strength. Economists forecast a 228,000 rise in April, according to a Bloomberg survey, after a 126,000 gain in March.

     Fed policy makers are watching hiring data to help determine the timing of raising borrowing costs after economic growth slowed in the first quarter for reasons the central bank called “transitory.” The quarter’s weaker-than-forecast data have stoked concerns that the Fed may soon raise borrowing costs even as the economy slows.

     “The market has been getting mixed-to-negative messages over the last few days,” said Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion. “The economic numbers have recently been more disappointing than not, so it makes tomorrow’s jobs number even more newsworthy than usual.”

     Analysts have tempered their predictions for a slump in first-quarter corporate profits, while more than two-thirds of companies that have posted earnings so far have beat estimates.

     The Chicago Board Options Exchange Volatility Index fell 0.1 percent to 15.13. The gauge, know as the VIX, is heading toward its biggest weekly gain since January. Nine of the S&P 500’s 10 main groups climbed, led by technology and financial companies.

     Yahoo’s 5.3 percent rally led an increase in technology shares, with the group rising 0.7 percent after a 0.8 percent drop Wednesday. The Internet portal and Alibaba stakeholder posted its best advance since September after Alibaba named a new chief executive and posted a 45 percent increase in revenue.

     Motorola Solutions Inc. added 2.1 percent after Gabelli & Co. and Raymond James Financial Inc. upgraded the shares. Microsoft climbed 0.9 percent after a 2.8 percent retreat yesterday, its biggest slide since March.

     Google Inc. increased 1.3 percent. Leon Cooperman, founder of Omega Advisors, said his hedge fund bought shares of the Internet search giant as he believes the company could take steps to enhance shareholder value.

     Yelp Inc. surged 23 percent, the most since August 2013. A person with knowledge of the matter said the consumer-review website is working with Goldman Sachs Group Inc. to find a buyer.

     Airlines jumped the most in more than three months amid oil’s decline, with a Bloomberg gauge on U.S. carriers up 3.5 percent. United Continental Holdings Inc. rose 5.2 percent, its best advance since February. American Airlines Group Inc. and Delta Air Lines Inc. each gained at least 2.9 percent.

     Real-estate companies were among the best performers in the S&P 500’s financial group, with Essex Property Trust Inc. and Equity Residential rising at least 1.9 percent. Citigroup climbed 1 percent even as an index of bank stocks slid 0.1 percent.

     Carnival Corp. increased 2.4 percent, pacing consumer discretionary shares. The world’s No. 1 cruise company said late Wednesday that it’s planning to base a fifth passenger liner in Shanghai in 2017, adding to a foothold in China’s fast-growing leisure cruise market. Darden Restaurants Inc. and homebuilder Lennar Corp. also added more than 2.3 percent.

     Health-care shares rebounded after two days of declines, with Alexion Pharmaceuticals Inc. up 5.1 percent. The company’s shares tumbled 8 percent Wednesday after it agreed to buy Synageva BioPharma Corp. for $8.4 billion. The Nasdaq Biotechnology Index rose 0.9 percent, gaining  for a second day.                         

     Energy stocks in the S&P 500 lost 1.1 percent, the most in the benchmark as oil had its biggest slump in a month. Transocean Ltd. and Noble Corp. fell more than 3.5 percent, while Diamond Offshore Drilling Inc. and Apache Corp. slid at least 3.3 percent.

     Whole Foods Market Inc. plunged 9.7 percent, the most in a year. The supermarket operator reported revenue and comparable- store sales that trailed analysts’ estimates.

     Keurig Green Mountain Inc., the maker of single-serve coffee machines, dropped 9.2 percent after cutting its annual forecast, hurt by slow sales of its second-generation brewing system.

     Teradata Corp. decreased 7 percent to its lowest level since February after reporting first-quarter earnings that missed consensus analyst estimates.

 

Have a  wonderful evening everyone.

 

Be magnificent!

The idea of a duty to understand violence engenders for me

a great vitality and passion for knowledge.

But to transcend this violence, I need not repress it, nor deny it, nor say to myself:

It has become a part of me, I can do nothing about it; or, I wish to reject it.

I must observe it, study it, enter into it intimately,

and for that purpose I need neither condemn it nor justify it.

And yet, it is this that we do.

I would ask you, then, to suspend for an instant your judgments on the subject.

Krishnamurti

As ever,

 

Carolann

 

Love yourself first and everything else falls into line.

                                      -Lucille Ball, 1911-1989

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

People watch a shadow play performance at Changgyeonggung Palace in Seoul, South Korea, Wednesday. Thomas Peter/Reuters

The Villarrica Volcano is seen Tuesday night in Pucon town, Chile. Cristobal Saavedra/Reuters

Market Closes for May 6^th, 2015

Market Index	Close	Change
Dow Jones	17841.98	-86.22
		-0.48%
S&P 500	2080.15	-9.31   -0.45%
NASDAQ	4919.645	-19.683   -0.40%
TSX	15023.89	-150.05
		-0.99%

International Markets

Market Index	Close	Change
NIKKEI	19531.63	+11.62
		+0.06%
HANG SENG	27640.91	-114.63
		-0.41%
SENSEX	26717.37	-722.77
		-2.63%
FTSE 100	6933.74	+6.16
		+0.09%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.821	1.735
CND. 30 Year Bond	2.404	2.322
U.S.    10 Year Bond	2.2431	2.1799
U.S. 30 Year Bond	2.9929	2.9080

Currencies

BOC Close	Today	Previous
Canadian $	0.83051	0.82691
US $	1.20407	1.20933
Euro Rate 1 Euro=		Inverse
Canadian $	1.36632	0.73189
US $	1.13475	0.88125

Commodities

Gold	Close	Previous
London Gold Fix	1194.25	1197.00
Oil	Close	Previous
WTI Crude Future	60.93	60.40

Market Commentary:

Canada

By Jennifer Kaplan

     (Bloomberg) — Canadian stocks fell to a one-month low as energy shares plunged after election results in Alberta raised concern over the possibility of higher corporate taxes in the province.

     The New Democratic Party, led by Rachel Notley, ended a 44- year Progressive Conservative dynasty by winning a majority of districts in elections Tuesday, according to Elections Alberta. The NDP promises to boost corporate taxes, review the government’s take of energy revenue, scale back advocacy for pipelines and phase out coal power more quickly.

     The Standard & Poor’s/TSX Composite Index fell 150.05 points, or 1 percent, to 15,023.89 at 4 p.m. in Toronto, the lowest level since April 1. The loss trimmed the benchmark Canadian equity gauge’s advance in 2015 to 2.7 percent.

     Energy companies dropped 2.5 percent, the most of 10 groups in the S&P/TSX Composite Index and biggest loss for the industry since Feb. 4. RMP Energy Inc. sank 11 percent. Suncor Energy Inc., Canada’s biggest oil producer by market value, tumbled 3.4 percent and Canadian Natural Resources Ltd. fell 2.9 percent.

     “It’s completely devastating” for energy companies and investors, Rafi Tahmazian, who helps manage C$1 billion ($831 million) in energy funds at Canoe Financial LP in Calgary, said on Tuesday. “The perception from the market based on their comments is they’re extremely dangerous.”

     Materials companies in the index slid 1.3 percent, as seven of 10 industries in the S&P/TSX retreated.

     Barrick Gold Corp. slumped 3.8 percent and Iamgold Corp. fell 6.9 percent as the price of the metal for the first time this week. Federal Reserve Chair Janet Yellen said bond yields could see a sharp jump after the central bank raises interest rates, crimping demand for gold as an alternative investment.

     Enbridge Inc. lost 2.7 percent, the most in three months, after reporting results that missed analysts’ estimates. Canada’s largest pipeline company posted a first-quarter loss on adjustments to contracts meant to guard against swings in currencies, oil prices and interest rates.

     Pacific Rubiales Energy Corp. rose 12 percent, to a Jan. 2 high. Alfa SAB, already the largest shareholder in Pacific Rubiales, joined Harbour Energy Ltd. in a takeover offer of about C$2.1 billion for the Colombian company to expand into the oil industry.

US

 By Jeremy Herron

     (Bloomberg) — The dollar sank and U.S. stocks fell to a one-month low after data on jobs and productivity added to concern economic growth is not robust enough to withstand higher interest rates. A rout in global bonds resumed, while oil advanced on supplies data.

     The Standard & Poor’s 500 Index fell 0.5 percent at 4 p.m. in New York. The guage earlier slid below its 100-day moving average before paring declines by half in the final hour of trading. The Bloomberg Dollar Spot Index lost 0.7 percent. The yield on 10-year Treasuries continued to climb with European bond rates in a global bond rout that has erased more than $430 billion in value since the start of last week. Oil pared an earlier rally past $62 a barrel.

     Productivity in the U.S. fell in the first quarter, while a private payrolls report showed companies in April added the fewest number of workers in more than a year. Economic data have been missing estimates by the most in more than six years, stoking concerns growth is slowing as the Fed considers raising borrowing costs. Federal Reserve Chair Janet Yellen said equity- market valuations are “quite high,” while long-term interest rates are low and could jump when the central bank raises its benchmark.

 

     The data “has people nervous, and after yesterday’s selloff there are a lot of weak hands in the market,” Robert Pavlik, who helps oversee $9 billion as chief investment strategist at Boston Private Wealth, said by phone. “People are worried about what Friday’s report is going to bring. They’re not fully committed — they’re just trying to ride the wave, and that’s caused some selling pressure to develop.”

     Ten-year yields rose five basis points to 2.23 percent, the highest since March 6. The 10-year rate has gained 37 basis points since April 17. Thirty-year bond yields rose seven basis points to 2.98 percent, the highest level since December.

     “We saw this in the case of the taper tantrum in 2013, where there was a very sharp upward movement in rates,” Yellen said in Washington, in reference to the episode in the middle of that year, when then-Chairman Ben S. Bernanke suggested that the Fed could start tapering its bond purchases in the next few meetings.

     “To say that when the Fed starts to tighten you could see a sharp jump in long rates, that’s something we haven’t heard from Yellen before, so the market is a little surprised by that comment and it’s being reflected in prices and yields here, particularly at the long end of the market,” Donald Ellenberger, who oversees about $10 billion as head of multi- sector strategies at Federated Investors in Pittsburgh.

     The dollar dropped against most of its 16 major counterparts, extending losses that pushed the Bloomberg dollar gauge to its steepest slide since 2011 in April, as market tension rises before Friday’s government jobs report.

     While data showed the economy expanded at a 0.2 percent annualized rate in the first quarter, the Fed called the weakness “transitory,” opening the door for a possible rate increase this year.

     The S&P 500 trades at 17.6 times forecast earnings of its members, compared with an average multiple of 14.5 in the past five years. The index has fallen 1.8 percent from an April 24 record amid a retreat in risk appetite. Some of the year’s most popular market bets backfired last month, as the dollar and European bonds slid, while energy prices rebounded.

     The Dow Jones Industrial Average fell 0.5 percent Tuesday, briefly erasing its gain for the year before paring declines in late trading. The gauge is 0.1 percent higher in 2015.

     Stocks have declined even as quarterly earnings come in better than expected. About 72 percent of the 408 S&P 500 companies that have reported earnings this season have beaten analysts’ projections.

     “It just shows you’re on some sort of soft patch in the U.S. — it may be enough for the Fed to rethink the timing,” Charles St-Arnaud, senior economist at Nomura Holdings Inc., said by phone from London. “The consensus trades so far this year — which were being long bonds, long dollar — that seems to be gradually unwinding.” A long position is a bet an asset will increase in value.

     The Stoxx Europe 600 fell 0.6 percent as investors assessed corporate results and watched for developments in Greek debt talks. Shares pared an advance after the U.S. data.

     Tumbling Greek shares led European stocks to their lowest level in two months on Tuesday on concern that bailout negotiations will fail to secure funding in time to prevent the nation defaulting.

     The MSCI Emerging Markets Index dropped 0.9 percent. Russia’s ruble and the Malaysian ringgit strengthened as gains crude prices buoyed earnings prospects for the oil-exporting nations.

     The Shanghai Composite slid 1.6 percent to a two-week low and the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong slipped 0.6 percent.

     The Bloomberg Commodity Index, a measure of 22 raw materials, slipped 0.2 percent after two days of gains.

     Raw-material prices have rebounded since reaching a 12-year low in March as crude rallied, the dollar fell and speculation increased that China may add to stimulus.

     The Bloomberg commodities gauge has still plunged more than 50 percent from its record in 2008, after a decade-long bull market encouraged farmers, miners and oil producers to ramp up supplies.

     Oil futures reached $62.58 a barrel, the highest since December, before paring advances. West Texas Intermediate climbed 0.9 percent to settle at $60.93 in New York.

     Crude supplies slipped 3.88 million barrels last week, according to the Energy Information Administration. A gain was expected in a Bloomberg survey of analysts. Refineries operated at the highest rate in four months as imports slipped to a one- year low.

 

Have a wonderful evening everyone.

 

Be magnificent!
 

                “Without hard work, nothing grows but weeds.” Gordon B. Hinckley

As ever,

 

Karen

 

“I’ve learned that you shouldn’t go through life with a catcher’s mitt on both hands; you need to be able to throw something back.” Maya Angelou

  

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

Two women ride their horses over a meadow covered with dandelions near Burggaillenreuth, southern Germany, Tuesday. Nicolas 

Two Canada geese chicks play between daisies in a park in Duesseldorf, Germany, Tuesday. Maja Hitij/dpa/AP

Market Closes for May 5^th, 2015

Market Index	Close	Change
Dow Jones	17928.20	-142.20
		-0.79%
S&P 500	2089.46	-25.03   -1.18%
NASDAQ	4939.328	-77.601   -1.55%
TSX	15173.94	-193.53
		-1.26%

International Markets

Market Index	Close	Change
NIKKEI	19531.63	+11.62
		+0.06%
HANG SENG	27755.54	-368.28
		-1.31%
SENSEX	27440.14	-50.45
		-0.18%
FTSE 100	6927.58	-58.37
		-0.84%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.735	1.714
CND. 30 Year Bond	2.322	2.294
U.S.    10 Year Bond	2.1799	2.1440
U.S. 30 Year Bond	2.9080	2.8765

Currencies

BOC Close	Today	Previous
Canadian $	0.82862	0.82691
US $	1.20683	1.20933
Euro Rate 1 Euro=		Inverse
Canadian $	1.34983	0.74083
US $	1.11849	0.89406

Commodities

Gold	Close	Previous
London Gold Fix	1197.00	1175.95
Oil	Close	Previous
WTI Crude Future	60.40	58.93

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell the most since March amid data showing a record national trade deficit and a global selloff in equities as concern grew that Greece won’t resolve its debt crisis.

     Royal Bank of Canada and Toronto-Dominion Bank, the nation’s largest lenders, retreated at least 0.8 percent as financial stocks slumped. Alimentation Couche-Tard Inc., the convenience store operator, lost 2.7 percent to pace a decline among consumer-staples retailers. Canadian Pacific Railway Ltd. and Canadian National Railway Co., the nation’s largest rail operators, tumbled at least 1.5 percent.

     The Standard & Poor’s/TSX Composite Index fell 193.53 points, or 1.3 percent, to 15,173.94 at 4 p.m. in Toronto, the biggest decline since March 10. Tuesday’s slide trimmed the benchmark Canadian equity gauge’s advanced in 2015 to 3.7 percent.

     The MSCI All-Country World Index fell 0.9 percent, as the U.S. benchmark S&P 500 slumped the most in almost six weeks and the Stoxx Europe 600 Index dropped to an eight-week low.

     Wolfgang Schaeuble, the German Finance Minister, said Greece and its creditors may not be able to complete the work needed for an agreement on financial aid before about 1 billion euros ($1.1 billion) of payments become due to the International Monetary Fund on May 12.

     Canada posted a record trade gap in March as the value of energy exports declined and imports of consumer goods increased. The C$3.02 billion deficit topped the C$2.87 billion record set in July 2012 and exceeded the highest forecast of C$1.33 billion in a Bloomberg economist survey.

     All 10 industries in the S&P/TSX retreated at least 0.5 percent, on trading volume 10 percent higher than the 30-day average today.

     Couche-Tard fell 2.7 percent and Loblaw Cos. lost 1.3 percent as consumer-staples companies declined 1.5 percent as a group. Industrial stocks tumbled 1.9 percent, led by the railroad operators.

     Pacific Rubiales Energy Corp. jumped 18 percent in trading on alternative markets after the company received a takeover approach by Alfa SAB and Harbour Energy Ltd. that values it at about $6 billion including debt, according to people with knowledge of the matter.

US

By Joseph Ciolli and Oliver Renick

     (Bloomberg) — The Standard & Poor’s 500 Index fell the most in more than a month, joining a global decline in equities, as mixed data added to U.S. growth concerns and speculation rose that Greece won’t be able to resolve its debt crisis.

     Apple Inc. lost 2.3 percent, and semiconductors fell 2.2 percent to lead a selloff in technology companies. The Nasdaq Biotechnology Index slid 2 percent as health-care shares dropped. Delta Air Lines Inc. and American Airlines Group Inc. declined more than 3 percent as oil topped $60 a barrel for the first time this year.

     The S&P 500 Index slumped 1.2 percent to 2,089.46 at 4 p.m. in New York, below its average price during the past 50 days. The Nasdaq Composite Index dropped 1.6 percent, and the Russell 2000 Index lost 1.4 percent. About 7.2 billion shares traded hands on U.S. exchanges, 10 percent above the three-month average.

     “There’s a sense of uneasiness permeating through the equity market due to first quarter results, mixed signals of economic health and high valuations,” said Terry Sandven, who helps oversee $126 billion as chief equity strategist at U.S. Bank Wealth Management in Minneapolis. “The U.S. economy is navigating through a soft patch and high valuations are elevating the risk of being wrong, so investor angst and concern remains high.”

     Concern has grown over whether Greece can meet its obligation to pay about $1.1 billion due to the International Monetary Fund by May 12. The Stoxx Europe 600 Index fell to its lowest level in two years.

     A report today showed the U.S. trade deficit widened in March to the highest level in more than six years, fueled by a record surge in imports as commercial activity resumed at West Coast ports following a resolution to labor disputes. The jump probably means the U.S. economy contracted in the first quarter when the Commerce Department issues revisions later this month.

     A separate report showed service industries such as real- estate firms and restaurants unexpectedly grew at a faster pace in April as the biggest part of the U.S. economy picked up.

     Investors will look ahead to Friday’s payrolls numbers amid speculation over the timeline for an increase in U.S. interest rates. Concern that the Federal Reserve may soon raise borrowing costs even as economic growth sputters sent equities dropping from records last week, with losses concentrated in biotechnology and social-media shares.

     “This is a market that’s struggled to get out of the gate this year,” said Kevin Caron, a market strategist and portfolio manager who helps oversee $170 billion at Stifel Nicolaus & Co. in Florham Park, New Jersey. “There’s a lot of choppiness — no clear direction. There’s a sense of uncertainty right now, and the market is eventually going to have to look for real growth in the economy, and that’s looking fairly weak.”

     Stocks rebounded for a second day on Monday, helped by a rally in banks, amid optimism over corporate earnings season. Of the 377 S&P 500 companies that have reported results through Monday, 73 percent topped analysts’ estimates for profits, data compiled by Bloomberg show.

     Apple slipped 2.3 percent, its fifth decline in six days, a period during which it’s fallen more than 5.1 percent.

     The Chicago Board Options Exchange Volatility Index climbed 11 percent Tuesday to 14.31, its biggest jump in six weeks. The gauge, know as the VIX, added 3.3 percent last week. All of the S&P 500’s 10 main groups retreated, with eight falling more than 1 percent.

     Leading declines among tech, semiconductor companies dropped for a second day as Micron Technology Inc. and Intel Corp. lost at least 1.6 percent. The Philadelphia Stock Exchange Semiconductor Index retreated 2.2 percent, its biggest drop in six weeks.

     Gilead Sciences Inc. and Vertex Pharmaceuticals Inc. paced the slide in health-care companies, losing more than 2.5 percent. Express Scripts Holding Co. slumped 3.2 percent, the most since December.

     Utilities in the S&P 500 tumbled 2.3 percent, their biggest decline in two months. Sempra Energy decreased 3.2 percent after reporting first-quarter sales that fell short of analyst estimates. Edison International and FirstEnergy Corp. fell more than 2.5 percent.

     Energy companies in the S&P 500 erased earlier gains, even as crude-oil prices climbed to near five-month highs. Advances of more than 3.1 percent in Diamond Offshore Drilling Inc. and Transocean Ltd. were overshadowed by declines of at least 3.1 percent in Pioneer Natural Resources Co., Newfield Exploration Co. and EOG Resources Inc.

     A Bloomberg gauge of U.S. airlines tumbled 3.1 percent amid oil’s rally. American Airlines and United Continental Holdings Inc. sank more than 2.7 percent. The Dow Jones Transportation Average dropped 1.7 percent, the most in six weeks.

     International Paper Co. fell 5.2 percent to its lowest level in six months as rules proposed Tuesday by the IRS would not allow the company to separate its containerboard operations into a tax-advantaged vehicle.

     Salesforce.com Inc. added 1.6 percent, after jumping more than 6 percent as people with knowledge of the matter said Microsoft Corp. is evaluating a bid for the company. Microsoft lost 1.3 percent.

     Mallinckrodt Plc rallied 4.6 percent after quarterly results beat estimates and the drugmaker raised it full-year profit outlook.

     Netflix Inc. advanced 1.9 percent after Bank of America Corp. raised its rating on the company to buy from sell while more than doubling its price forecast.

 

Have a wonderful evening everyone.

 

Be magnificent!
 

                “It is not how much we have, but how much we enjoy, that makes happiness.” Charles Spurgeon

As ever,

 

Karen

 

“A warm smile is the universal language of kindness.” William Arthur Ward

  

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

Sparrows fly in and out of the muzzle of a former Soviet tank in Berlin Monday. The tank is part of a memorial for Red Army soldiers. Markus Schreiber/AP

Members of the media view selections for the Metropolitan Museum of Art Costume Institute Gala Benefit, ‘China: Through the Looking Glass,’ during a media preview in New York Monday. Stephanie Keith/Reuters

Market Closes for May 4^th, 2015

Market Index	Close	Change
Dow Jones	18070.40	+46.34
		+0.26%
S&P 500	2114.49	+6.20   +0.29%
NASDAQ	5016.930	+11.539   +0.23%
TSX	15367.47	+27.70
		+0.18%

International Markets

Market Index	Close	Change
NIKKEI	19531.63	+11.62
		+0.06%
HANG SENG	28123.82	-9.18
		-0.03%
SENSEX	27490.59	+479.28
		+1.77%
FTSE 100	6985.95	+25.32
		+0.36%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.714	1.662
CND. 30 Year Bond	2.294	2.240
U.S.    10 Year Bond	2.1440	2.1064
U.S. 30 Year Bond	2.8765	2.8200

Currencies

BOC Close	Today	Previous
Canadian $	0.82691	0.82216
US $	1.20933	1.21631
Euro Rate 1 Euro=		Inverse
Canadian $	1.34828	0.74169
US $	1.11490	0.89694

Commodities

Gold	Close	Previous
London Gold Fix	1175.95	1175.95
Oil	Close	Previous
WTI Crude Future	58.93	59.15

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day, extending the biggest increase in five weeks, as Alimentation Couche-Tard Inc. surged to lead gains among consumer shares and the nation’s largest insurers advanced ahead of earnings.

     Couche-Tard climbed 4.6 percent to snap a three-day slide. Sun Life Financial Inc. and Manulife Financial Corp. added at least 1.3 percent. First Quantum Minerals Ltd. slipped 3.5 percent as copper fell after the largest weekly advance in 40 months.

     The Standard & Poor’s/TSX Composite Index rose 27.70 points, or 0.2 percent, to 15,367.47 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 5 percent so far this year.

     Five of 10 industries in the S&P/TSX rose today on trading volume 18 percent lower than the 30-day average. Financial shares climbed 0.4 percent, while consumer staples stocks jumped 1.9 percent.

     Couche-Tard rallied 4.6 percent, the most since December. The Laval, Quebec-based operator of convenience stores and gas stations said in a release an April 24 bankruptcy filing before an Arizona court for The Circle K Corp. was not related to Couche-Tard’s Circle K subsidiary and has no link to the company.

     Sun Life Financial gained 1.6 percent, the biggest increase in seven weeks. The insurer will report first-quarter earnings May 5. Manulife, the nation’s largest insurer, is scheduled to report on May 7.

     Torex Gold Resources Inc. jumped 5.5 percent and Centerra Gold Inc. added 4.6 percent. Gold futures for June delivery climbed 1 percent to settle at $1,186.80 an ounce in New York, rebounding from a six-week low.

     Ensign Energy Services Inc. added 11 percent, the most since 2009, after reporting first-quarter profit ahead of analysts’ estimates.

US

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — U.S. stocks advanced toward all-time highs amid corporate results and data showing strength in the economy. Treasuries declined a second day as a rout in European bonds diminished the appeal of relatively higher American yields.

     The Standard & Poor’s 500 Index gained 0.4 percent at 4 p.m. in New York, within three points of its closing record. The Stoxx Europe 600 Index rebounded from the biggest weekly slide this year as euro-area manufacturing increased more than estimated. The euro slipped versus all but one of its 16 major peers. The yield on 10-year German notes jumped, while similar- maturity Treasury notes climbed to a seven-week high. Brazil’s real slid 2 percent. Gold futures climbed 1 percent.

     U.S. factory orders rose 2.1 percent in March for the biggest gain since July, adding to evidence a winter slowdown may have been temporary. Earnings from Comcast Corp. and Berkshire Hathaway Inc. beat estimates. The S&P 500 rallied the most in more than a month Friday, while the dollar advanced to stanch slides that reversed some key trends in April Manufacturers in the euro area raised prices for the first time in eight months in April.

     “With nothing negative coming from overseas, you’re seeing a continuation of the positive price action from Friday afternoon,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said by phone. “We still have a pretty heavy slate of earnings this entire week, with a number of high-profile companies reporting, that’ll probably be the focus for the next several days.”

     U.S. equities slipped for the week, with the S&P 500 closing 0.4 percent below an all-time high, as the Federal Reserve left open the possibility of raising interest rates this year, with losses concentrated in biotechnology and social-media sectors that have among the highest valuations.

     Among stocks rising Monday, Cognizant Technology Solutions Corp. rallied as earnings exceeded forecasts. McDonald’s Corp. slipped as the fast-food giant unveiled its turnaround plan.

     Diamond Offshore Drilling Inc. decreased after saying it expects a downturn in demand for offshore drilling to last at least through next year as customers cut spending amid the crude crash.

     Pioneer Natural Resources Co. slipped 1.8 percent after David Einhorn, who runs hedge fund Greenlight Capital, criticized the company for spending too much money without returns. Einhorn was among several money managers speaking at the Sohn Investment Conference in New York on Monday.

     Walt Disney Co. and Mylan NV also release earnings this week. Analysts have tempered their predictions for a corporate profit slump, now projecting a first-quarter drop of 0.4 percent, compared with April 17 calls for a 4.3 percent decline.

     Of the S&P 500 members that have already released results this season, 73 percent beat profit projections and 49 percent topped sales estimates.

     Bill Gross said the bull market “supercycle” for stocks and bonds is approaching its end, as the unconventional monetary policies that have kept it alive since the financial crisis are running out. Gross acknowledged that his calls for the end of the bond rally in both February and April of 2013 were too early.

     The euro slipped 0.5 percent to $1.1149, after surging 4.6 percent in April, its first monthly advance since the middle of last year.

     “Last week’s correction provided a good entry point for a lot of investors,” Alessandro Bee, a strategist at Bank J Safra Sarasin, said by phone from Zurich. “Liquidity is still being poured into markets and the European economy is accelerating. The next step is to understand whether U.S. growth is really slowing, or whether we’ll get a much-needed recovery in the second quarter.”

     The Stoxx 600 slid 3.4 percent, the most since December, in a holiday-shortened week for  most markets. Trading volumes in the Stoxx 600 were 34 percent below the 30-day average on Monday, with London trading closed.

     Gold futures recovered from a six-week low amid the China stimulus speculation. Futures for June delivery rose 1.3 percent to $1,189.40 an ounce in New York.

     Brazil’s real tumbled 2.3 percent to 3.08452 per U.S. dollar to lead global declines as the central bank eased support for the currency.

     Crude oil futures slipped below $59 a barrel in New York trading, as West Texas Intermediate for June delivery fell 0.3 percent to $58.95 a barrel. Prices touched $59.90 on May 1, the highest level since Dec. 11.

 

Have a wonderful evening everyone.

 

Be magnificent!

Life’s most persistent and urgent question is, ‘What are you doing for others?’

Martin Luther King, Jr.

As ever,

 

“The most important thing is to enjoy your life – to be happy – it’s all that matters.”

Audrey Hepburn

 

Karen

  

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

May Day: May 1^st:  Polydore Virgil says that the Roman youths used to go into the fields and spend the Calends of May in dancing and singing in honor of Flora, a goddess of fruits and flowers.  The English celebrated May Day with games and sports, particularly archery and Morris Dances and the setting up of the Maypole.  In due time Robin Hood and Maid Marian came to preside as Lord and Lady of the May, and by the 16^thcentury May Day was Robin Hood’s day and Robin Hood plays became an integral part of the festivities.  May Day was also formerly the day of the London chimney-sweepers’ festival.

Maypole and May queen:  Dancing around the Maypole on May Day, “going–a-Maying”, electing a May queen and lighting bonfires were all ancient relics of nature worship.  In Cornhill, London, a great shaft or maypole was set up before the church of St. Andrew.  The annual dancing of people under the pole gave the church’s present name of St. Andrew Undershaft.  In the first May morning people went “a-maying” to fetch fresh flowers and branches of hawthorn (hence its name “may”) to d to decorate their houses, and the fairest maid of the locality was crowned “queen of the May.”

The Maypole in the Strand:  This once famous London landmark was erected proba

On this day in 1941, Citizen Kane debuts. The film, considered by many to be the greatest ever made, fails to recoup its costs at the box office.

PHOTOS OF THE DAY

A reveller walks through the streets in the early hours during traditional May Day celebrations in Oxford, Britain, Friday. Dylan Martinez/Reuters

A boy dances with Leicester Morrismen during May Day celebrations at Bradgate Park in Newtown Linford, Britain, Friday. The celebration is a traditional rite thought to be connected to changing seasons and fertility. Darren Staples/Reuters

Fans watch a race before the 141th running of the Kentucky Oaks horse race at Churchill Downs Friday in Louisville, Ky. Jeff Roberson/AP

Market Closes for May 1^st, 2015

Market Index	Close	Change
Dow Jones	18024.06	+183.54
		+1.03%
S&P 500	2106.90	+21.39   +1.03%
NASDAQ	5005.391	+63.967   +1.29%
TSX	15356.45	+131.93
		+0.87%

International Markets

Market Index	Close	Change
NIKKEI	19531.63	+11.62
		+0.06%
HANG SENG	28133.00	-267.34
		-0.94%
SENSEX	27011.31	-214.62
		-0.79%
FTSE 100	6985.95	+25.32
		+0.36%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.662	1.589
CND. 30 Year Bond	2.240	2.183
U.S.    10 Year Bond	2.1064	2.0388
U.S. 30 Year Bond	2.8200	2.7475

Currencies

BOC Close	Today	Previous
Canadian $	0.82216	0.82916
US $	1.21631	1.20604
Euro Rate 1 Euro=		Inverse
Canadian $	1.36358	0.73337
US $	1.12108	0.89200

Commodities

Gold	Close	Previous
London Gold Fix	1175.95	1180.25
Oil	Close	Previous
WTI Crude Future	59.15	59.63

Have not great merchants, great manufacturers, great inventors done more for the world than preachers and philanthropists.  Can there be any doubt that cheapening the cost of necessities and conveniences of life is the most powerful agent of civilization and progress?

            -Charles Elliott Perkins (Railroad magnate, 1840-1907)

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose the most in five weeks as Valeant Pharmaceuticals International Inc. rallied to a record and base metals producers advanced.

     Valeant climbed 3.7 percent for a fourth straight day of gains. First Quantum Minerals Ltd. jumped 5.5 percent as copper posted the biggest weekly advance in 40 months. Canadian Pacific Railway Ltd. added 2.7 percent to snap a four-day drop, pacing gains among industrial shares.

     The Standard & Poor’s/TSX Composite Index rose 115.25 points, or 0.8 percent, to 15,339.77 at 4 p.m. in Toronto, trimming its weekly loss to 0.4 percent. The benchmark Canadian equity gauge advanced 2.2 percent in April.

     Raw-materials stocks rallied 1.8 percent as nine of 10 industries in the S&P/TSX advanced. Trading volume was 13 percent lower than the 30-day average.

     First Quantum climbed 5.5 percent and Lundin Mining Corp. increased 5 percent. Copper has advanced 6.4 percent this week, the most since December 2011. China’s official manufacturing Purchasing Managers’ Index showed a reading of 50.1 in April, matching the gauge for March and above the median forecast in a Bloomberg survey of 50.0, the level that divides expansion and contraction.

     HudBay Minerals Inc. rose 4.9 percent and Labrador Iron Ore Royalty Corp. gained 1.5 percent.

     New Gold inc. dropped 1.2 percent and Semafo Inc. lost 2.2 percent. Gold futures for June delivery lost 0.7 percent in New York to fall to a six-week low amid speculation the Federal Reserve is moving closer to raising interest rates.

     Valeant increased 3.7 percent for a record close. The stock, the third-largest in the S&P/TSX by market capitalization, has jumped 11 percent in four days. The company on April 29 raised its forecast for the year after first-quarter profit topped estimates.

US

By Callie Bost

     (Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index paring a weekly loss, as Gilead Sciences Inc. and Expedia Inc. rallied after Thursday’s selloff in biotechnology and small-cap shares.

     The Nasdaq Biotechnology Index rebounded 2.9 percent from a 3.1 percent drop yesterday. Gilead added 4.5 percent as first- quarter profit exceeded projections. Expedia Inc. climbed 7.9 percent, amid quarterly revenue that exceeded estimates, and paced consumer shares as they erased their Thursday decline. LinkedIn Corp. tumbled 19 percent after trimming its annual sales forecast.

     The S&P 500 gained 1.1 percent to 2,108.29 at 4 p.m. in New York, after falling 1 percent Thursday. The index jumped above its average price for the past 50 days. The Russell 2000 rose 0.7 percent after tumbling 2.2 percent yesterday. The Dow Jones Industrial Average climbed 183.54 points, or 1 percent, to 18,024.06 and nearly wiped out yesterday’s retreat.

     “This week felt like an unwinding of a lot of big trading positions that had been on for months and that had been extremely successful,” said David Heidel, a regional investment director for the private client reserve of U.S. Bank, which oversees about $128 billion of assets. “This is a rebound from the tough days we had earlier this week. People are taking a look at potential bargains.”

     The benchmark index dropped 0.4 percent this week as the Federal Reserve left open the possibility of raising rates in 2015 even after data showed the economy barely grew in the first quarter.                         

     Wednesday’s growth report was among a string of weak numbers stoking concern about the strength of the recovery, as the Fed looks set for its first rate increase since 2006.

     A report today showed manufacturing in April held at the weakest pace in almost two years, while a separate report said consumer confidence increased in April to the second-highest level in more than eight years as Americans grew more upbeat about their financial prospects.

     Analysts have tempered their predictions for a corporate earnings slump, now projecting a first-quarter drop of 0.4 percent, compared with April 17 calls for a 4.3 percent decline.

     The Russell 2000 Index lost 2.6 percent last month as biotech and social-media companies, viewed by some investors as being in bubble territory, led a late April retreat in equities.

     While the S&P 500 returned to an all-time high in April and the Nasdaq Composite Index jumped to its first record since the dot-com bust, this week’s declines have pulled both indexes away from those levels. The S&P 500 is still one of the biggest laggards among developed-market indexes this year.

     “Markets are becoming increasingly tactical and taking profits,” said Michael Ingram, a market strategist at BGC Brokers LP in London. “The very basic issue is that markets want strong growth and zero rates forever. That’s simply not going to happen.”

     Amid the volatility, U.S. equities remain stuck within the tightest range of prices in almost a decade: roughly 125 points in the S&P 500. The peak-to-trough move of 6.3 percent is the smallest at this point of any year since 2006.

     The Chicago Board Options Exchange Volatility Index dropped 13 percent to 12.70 after an 8.7 percent jump yesterday. For the gauge known as the VIX, it’s the biggest retreat since January. About 6.4 billion shares changed hands on U.S. exchanges Friday, 3 percent below the three month average.                       

     Nine of the S&P 500’s 10 main groups rose Friday, with raw- material, technology and consumer discretionary companies rallying the most. Alcoa Inc. jumped 5.4 percent, its biggest gain since October, and Eastman Chemical Co. added 3.3 percent near a five-month high to lead materials. Alcoa was upgraded to buy from hold at Standpoint Research.

     Expedia led gains in consumer shares along with Yum! Brands Inc. and Leggett & Platt Inc. Yum surged 6.9 percent, the biggest gain in more than a year, after after Dan Loeb’s Third Point disclosed a “significant stake” in the restaurant operator, saying its business in China will recover from recent food-safety issues.

     Gilead, Biogen Inc. and Regeneron Pharmaceuticals Inc. paced health-care’s advance, with each rising at least 3 percent. The Nasdaq Biotech index added 2.9 percent, snapping a five-day losing streak during which the gauge dropped 9 percent.

     A Bloomberg gauge of U.S. airlines climbed 3 percent. SkyWest Inc. soared 18 percent after better-than-estimated first-quarter results. JetBlue Airways Corp. and Southwest Airlines Co. rose more than 5 percent.

     Altera Corp. rallied 9.8 percent after Reuters reported that the company could face a hostile takeover bid by Intel Corp. Intel added 2.7 percent and Micron Technology Inc. advanced 3.1 percent. The Philadelphia Stock Exchange Semiconductor Index increased 2.8 percent, its best gain since March 27 when Intel’s initial interest in Altera was first reported.

     Apple Inc. rose 3 percent, ending a three-day losing stretch in which shares fell 5.7 percent.

     LinkedIn lost 19 percent, the sharpest drop since it went public almost four years ago. The professional-networking website delivered quarterly revenue that missed analysts’ estimates for the first time, shaking confidence in a historically stable business plan. The company also trimmed its annual revenue forecast.                      

     First Solar Inc., the biggest U.S. solar-panel maker, slipped 3.9 percent to its lowest level in two months. Quarterly revenue missed estimates, and the company reported its first loss in three years as it prepares to create a new company to operate some of its completed power plants.

     Pump and valve maker Flowserve Corp. dropped 3.2 percent, the most in three months, after first-quarter profit and revenue missed estimates. The company cited broad-based industrial spending declines, notably in oil and gas markets, and the impact of a strengthening dollar.

     Chevron Corp. fell 1.8 percent, the most among three Dow components that declined, after reporting better-than-estimated quarterly earnings. Profit from its refinery business doubled, while earnings from its oil-and gas-producing business posted the worst performance since the second quarter of 2009.
 

Have a wonderful weekend everyone.

 

Be magnificent!

Live your own life.

That is to say, where you are, as you are, with what you are, and with who you are…

Accept the situation in which you find yourself and try, at the same time, to adapt to it.

You cannot escape from it.

Swami Prajnanpad

As ever,

 

You can’t win the Kentucky Derby unless you’re on a thoroughbred.

                                                               -Joe Torre, 1940-

 

Carolann

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7