Month: June 2015

Dear Friends,

Tangents:

Poem

The colloquialism of the title, which means “and them” = as in “Tell your mama  ’n’em I said hello” – encompasses a host of people made familiar by the world of the poem.  Most of us have known them: elders, and distant ancestors whose way of being was rooted in the wisdom of folk knowledge, a generation now all but gone.  –Natasha Tretheway, NY Times, 4/19/15.

’N’em

By Jericho Brown

They said to say goodnight

And not goodbye, unplugged

The TV when it rained.  They hid

Money in mattresses

So to sleep on decisions.

Some of their children

Were not their children.  Some

Of their parents had no birthdates.

They could sweat a cold out

Of you.  They’d wake without

An alarm telling them to.

Even the short ones reached

Certain shelves.  Even the skinny

Cooked animals too quick

To catch.  And I don’t care

How ugly one of them arrived,

That one got married

To somebody fine.  They fed

Families with change and wiped

Their kitchens clean.

Then another century came.

People like me forgot their names.

PHOTOS OF THE DAY

Britain’s Queen Elizabeth walks in a procession at the annual Order of the Garter service at St. George’s Chapel at Windsor Castle in Windsor, England, Monday. Peter Nicholls/Reuters

Hot lava flows from the crater of Mount Sinabung as seen from Tiga Serangkai, North Sumatra, Indonesia, early Monday morning. Authorities have been closely monitoring the 8,070 foot-high volcano since June 2, when its status was raised to the highest alert level due to the growing size of its lava dome. Binsar Bakkara/AP

Market Closes for June 15^th, 2015

Market Index	Close	Change
Dow Jones	17791.17	-107.67   -0.60%
S&P 500	2084.43	-9.68   -0.46%
NASDAQ	5029.973	-21.129   -0.42%
TSX	14756.05	+14.90
		+0.10%

International Markets

Market Index	Close	Change
NIKKEI	20387.79	-19.29
		-0.09%
HANG SENG	26861.81	-418.73
		-1.53%
SENSEX	26586.55	+161.25
		+0.61%
FTSE 100	6710.52	-74.40
		-1.10%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.769	1.807
CND. 30 Year Bond	2.360	2.396
U.S.    10 Year Bond	2.3559	2.3918
U.S. 30 Year Bond	3.0867	3.1030

Currencies

BOC Close	Today	Previous
Canadian $	0.81150	0.81194
US $	1.23228	1.23161
Euro Rate 1 Euro=		Inverse
Canadian $	1.39025	0.71930
US $	1.12824	0.88634

Commodities

Gold	Close	Previous
London Gold Fix	1181.40	1182.80
Oil	Close	Previous
WTI Crude Future	59.52	59.96

You have to trust in something – your gut, destiny, life, karma, whatever. –Steve Jobs 

Market Commentary:

Canada
By Eric Lam

     (Bloomberg) —  Canadian stocks were little-changed after two days of losses, as a retail rally overshadowed a global equities selloff amid concern that Greece won’t reach a deal with creditors to avert a default.

     Hudson’s Bay Co. soared 7.9 percent after agreeing to buy German retailer Galeria Kaufhof from Metro AG. Bombardier Inc. climbed 3.2 percent after its long-delayed CSeries jet took to the sky at the Paris Air Show for the first time. RMP Energy Inc. and Surge Energy Inc. retreated more than 4.3 percent as oil declined a third day, leading energy shares lower.

     The Standard & Poor’s/TSX Composite Index rose 14.90 points, or 0.1 percent, to 14,756.05 at 4 p.m. in Toronto. The gauge declined 1.4 percent last week for a third straight decline.

     Six of 10 industries in the S&P/TSX advanced on trading volume 11 percent below the 30-day average. Producers of consumer staples rallied 1.2 percent to lead gains. Financial stocks, which account for about one-third of the index, added 0.3 percent.

     Hudson’s Bay, Canada’s oldest company, surged the most since February. The company will pay 2.83 billion euros ($3.2 billion) for Kaufhof, putting one of Germany’s longest-standing and best-known retailers under the same ownership as Saks Fifth Avenue.

     Suncor Energy Inc. lost 1.7 percent and Canadian Natural Resources Ltd. declined 1.3 percent as energy producers decreased 0.4 percent as a group.

     Developed equity markets tumbled around the world, with the S&P 500 losing 0.5 percent in New York and the Stoxx Europe 600 falling 1.6 percent after Greece failed to reach an agreement with creditors in talks on the weekend.

     Attention now shifts to a June 18 meeting of euro-area finance ministers in Luxembourg as the next deadline in a saga that opened in 2009. Officials have focused on that as a make- or-break session for Greece’s ability to avert default and stay in the currency union.

     Canadian factory sales slumped 2.1 percent in April, quadrupling forecasts on lower receipts of food, aerospace and energy. It is the third monthly drop this year for the measure, as manufacturers have struggled to recapture orders lost in the 2008-2009 recession.

US

By Jennifer Kaplan and Callie Bost

     (Bloomberg) — U.S. stocks retreated, with the Standard & Poor’s 500 Index slipping below its average price during the past 100 days, after weekend negotiations between Greece and its creditors broke down and factory data were weaker than forecast.

     Industrial shares led declines as United Technologies Corp. dropped 2.5 percent after lowering its 2015 profit target amid weakness at the Sikorsky helicopter unit being targeted for divestiture. Micron Technology Inc. lost 3.5 percent after an analyst downgrade. Microsoft Corp. fell 1.1 percent, down for a third day. Cigna Corp. jumped 12 percent after a report that it was a takeover target.

     The S&P 500 slid 0.5 percent to 2,084.43 at 4 p.m. in New York, after earlier losing as much as 1 percent. The Dow Jones Industrial Average fell 107.67 points, or 0.6 percent, to 17,791.17, and the Nasdaq Composite Index dropped 0.4 percent. About 5.9 billion shares changed hands on U.S. exchanges Monday, 7.6 percent below the three-month average.

     “All eyes are on the tumultuous Greek negotiations which have moved the risk markets not only here in the United States, but across the globe,” said Chad Morganlander, a money manager in Florham Park, New Jersey, for Stifel, Nicolaus & Co., which oversees about $170 billion. “That as well as the weekly thematic will be the message from central banks, in particular the Federal Reserve.”

     The latest round of bailout talks between Greece and its creditors ended in acrimony after leaders met for just 45 minutes in Brussels on Sunday. European policy makers raised pressure on Greece to return to the negotiating table and make further concessions to unlock aid, as each side laid out its demands to rally support for its respective position.                          

     The Federal Reserve begins a two-day meeting Tuesday, at which officials are expected to leave interest rates unchanged. Improving economic reports since the central bank’s last session have pushed the probability for a September increase to 53 percent, data compiled by Bloomberg show. Chair Janet Yellen may provide further clues at a press conference on June 17.

     Manufacturing data today showed improvement from early year weakness remains uneven. Factory production unexpectedly declined in May as the slump in energy output deepened. The sluggish data signal that a stronger dollar and decrease in fuel prices are still holding back American factories. An earlier report showed manufacturing activity in the New York region unexpectedly worsened this month amid a drop in new orders.

     Another report showed confidence among homebuilders rebounded in June to a nine-month high as warmer weather and a brighter economic outlook drew prospective buyers back to the market.

     The specter of higher borrowing costs is also keeping U.S. equities in check, even after data last week signaled a pickup in consumer spending. The S&P 500 Friday finished its seventh straight week with a move of less than 1 percent.

     The Chicago Board Options Exchange Volatility Index jumped 12 percent Monday to 15.38, an 11-week high. The gauge, know as the VIX, slipped 3 percent last week.

     Industrial and consumer staple companies fell the most of 10 main groups in the S&P 500 Index. United Technologies had its biggest drop in three months, weighing on the industrials group along with the weaker-than-forecast factory data. Rockwell Automation Inc. and Raytheon Company lost more than 1.4 percent to pace a retreat among capital goods companies. 3M Co. decreased 1.4 percent to a seven-month low.

     Micron Technology declined the most in the benchmark gauge, down 3.5 percent to the lowest in more than a year after being cut to the equivalent of sell by Morgan Stanley. Microsoft lost 1.1 percent for its ninth drop in 10 sessions, while Teradata Corp. declined 2.8 percent to its lowest since 2010 after JMP Securities LLC downgraded the stock. SanDisk Corp. fell 2.9 percent to a two-month low.                       

     Netflix Inc. declined 1.1 percent. Alibaba Group Holding Ltd. is planning to build China’s version of Netflix and HBO via a new service called Tmall Box Office, as it tries to service 600 million families craving more entertainment content.

     Fiat Chrysler Automobiles NV slumped 2.6 percent. Morgan Stanley restricted coverage of General Motors Co. and Fiat Chrysler by analyst Adam Jonas because GM, a longstanding advisory client, disclosed that FCA approached it about a merger, said two people familiar with the matter.

     Coal miner Peabody Energy Corp. slid 5.5 percent to an all- time low. Shares dropped for a fourth consecutive session and have lost 27 percent over the period.

     Cigna surged 12 percent to a record. A person with knowledge of the matter said Anthem Inc. has explored takeovers of smaller health-insurance rivals Cigna and Humana Inc. Anthem gained 2.3 percent.                  

     Cigna’s rally helped to push health-care companies in the S&P 500 higher. Aetna Inc. rose 4.4 percent, the most in more than a year, to an all-time high. UnitedHealth Group Inc.advanced 1.1 percent.

     Standard Pacific Corp. and Ryland Group Inc. added at least 5.2 percent after the homebuilders agreed to merge. The combined entity, which will build entry-level to luxury homes, will be in 41 metropolitan areas and 17 states. The deal, coupled with a jump in monthly builders’ sentiment, lifted an S&P index of builders 0.7 percent to a three-week high.

     Dealertrack Technologies Inc. soared 58 percent after Cox Enterprises’ automotive unit agreed to buy the supplier of software services for vehicle retailers for $4 billion to expand from used-car services and data.

     CVS Health Corp. will pay $1.9 billion to buy Target Corp.’s pharmacies and clinics, expanding its reach by adding stores bearing its name inside the U.S. retail chain. Target gained 1.2 percent, while CVS added 0.4 percent after earlier rising as much as 1.1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

Life is like a garden.  Quite naturally, leaves wither and flowers fade.

Only if we clear the decay of the past

then and there can we really enjoy the beauty of the new leaves and flowers.

Likewise, we must clear the murkiness of past bad experiences from our minds.

Life is remembrance in forgetfulness.

Forgive what ought to be forgiven; forget what ought to be forgotten.

Let us embrace life with renewed vigor…

We should be able to face every moment of life with renewed expectation, like a freshly blossomed flower.

Mata Amritanandamayi

As ever,

 

Carolann

 

Not everyone can see his dreams come true in the same way.

                                                   -Paulo Coelho, 1947-

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Poem Selected by Natasha Trethewey (in the NY Times, 5/24/16)

Long after my mother died, I found photographs of her with my father that I’d never seen, taken when she was only 21.  Though I recognized her, there was something in her face unfamiliar to me.  Looking at the pictures, I felt as I do reading this poem; the melancholy of knowing, as they could not have known then, all that was to come in their lives, each photograph and elegy for their past selves.

The Blue Dress

  by Jehanne Dubrow

That day, tired of playing dollies and Let’s
Pretend, I found folded silk in the bottom
drawer, pushed to the back behind sheets and
pillowcases, blue silk like skin near drowning,
each button a drooping pearl.  There were
albums I pulled from other drawers, faces
behind plastic film, the young couple framed
with black corners.  In each photograph, my
mother’s face was water just before a stone
drops in, surface-smooth, opaque.  That our
parents have lives before us is a secret we
close in a dark compartment, the blue dress
a body dragged from a lake.

Natasha Trethewey served as the poet laureate of the United States from 2012-2014.  She is a professor at Emory University.  Jehanne Dubrow is the author of two poetry collections, including most recently, “The Arranged Marriage,” published by the University of New Mexico Press in March.

Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose.  –Steve Jobs, 1955-2011.

PHOTOS OF THE DAY

Dresses and skirts hang on clotheslines inside a stadium, in an art exhibition titled ‘Thinking of You’ by Kosovo-born, London-based artist Alketa Xhafa-Mripa, in Pristina, Kosovo, on Friday. Clothes donated by British barrister Cherie Blair and singer Rita Ora were among 5,000 garments in the art installation, drawing attention to the stigmas surrounding victims of wartime sexual violence. Hazir Reka/Reuters

Sanyu (l.), a five-day old Rothschild’s giraffe, runs with another member of the herd in their enclosure at Chester Zoo, in Chester, Britain, on Friday. Phil Noble/Reuters

Market Closes for June 12^th, 2015

Market Index	Close	Change
Dow Jones	17898.84	-140.53   -0.78%
S&P 500	2094.11	-14.75   -0.70%
NASDAQ	5051.102	-31.407   -0.62%
TSX	14741.15	-89.73
		-0.61%

International Markets

Market Index	Close	Change
NIKKEI	20407.08	+24.11
		+0.12%
HANG SENG	27280.54	+372.69
		+1.39%
SENSEX	26425.30	+54.32
		+0.21%
FTSE 100	6784.92	-61.82
		-0.90%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.807	1.815
CND. 30 Year Bond	2.396	2.407
U.S.    10 Year Bond	2.3918	2.3754
U.S. 30 Year Bond	3.1030	3.0940

Currencies

BOC Close	Today	Previous
Canadian $	0.81194	0.81413
US $	1.23161	1.22830
Euro Rate 1 Euro=		Inverse
Canadian $	1.38685	0.72106
US $	1.12604	0.88806

Commodities

Gold	Close	Previous
London Gold Fix	1182.80	1178.50
Oil	Close	Previous
WTI Crude Future	59.96	60.77

The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself.  Therefore, all progress depends on the unreasonable man.  –George Bernard Shaw, 1856-1950.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a second day, capping a third weekly loss, as global markets retreated amid growing concern negotiators will fail to avoid a Greek default.

     Toronto-Dominion Bank slipped 1 percent to pace declines among lenders. Bankers Petroleum Ltd. and Canadian Natural Resources Ltd. retreated more than 3.8 percent as crude fell a second day to pare a weekly gain. Dominion Diamond Corp. slumped 7.3 percent, dropping for a second straight day after reporting earnings.

     The Standard & Poor’s/TSX Composite Index lost 89.73 points, or 0.6 percent, to 14,741.15 at 4 p.m. in Toronto. The gauge declined 1.4 percent this week.

     Canaccord Genuity Group Inc. dropped 3.9 percent and AGF Management Ltd. retreated 3 percent as financial-services companies declined 0.5 percent. Eight of 10 industries in the benchmark Canadian equity gauge retreated on trading volume 22 percent lower than the 30-day average.

     The S&P/TSX joined declines in developed equity markets around the world, with the S&P 500 losing 0.7 percent in New York and the Stoxx Europe 600 falling 0.9 percent.

     European officials are preparing for the worst after an International Monetary Fund team left Brussels earlier this week, despairing of Greek Prime Minister Alexis Tsipras’s tactics. Tsipras is sending a delegation to Brussels with a new set of proposals for creditors with a goal to narrow differences before a meeting of finance ministers in Luxembourg on Thursday.

     Canadian households kept debt at near-record levels in the first quarter, at 163.3 percent of disposable income, compared with a revised 163.6 in the prior quarter, Statistics Canada said Friday in Ottawa. Household net worth rose 3.4 percent to C$8.65 trillion.

US

By Jennifer Kaplan and Oliver Renick

     (Bloomberg) — The return of the U.S. consumer wasn’t enough to drive equities out of their weekly doldrums — not with a Federal Reserve meeting looming and European leaders still wrangling over Greece’s debt.

     Stocks tracked by the Standard & Poor’s 500 Index finished the five days little changed. The gauge’s seventh straight week with a move of less than 1 percent wasn’t without drama, as equities began the period with the biggest three-day slide since March, only to rebound with the best gain in a month.

     While higher retail sales and a surge in confidence indicated American consumers got their mojo back and bolstered optimism in the economy, the specter of higher interest rates and the threat of Greek default kept equities in check. The run of weekly calm could end as Fed officials prepare to issue new forecasts for the economy and the path of rates, while Greece has less than a week to accept the conditions for aid.

     “There are some overriding currents with Greece and the Fed next week that could change the direction of the market,” said Walter Todd, who oversees about $1 billion as chief investment officer for Greenwood Capital. “The economic data has been better than expected here. We view that obviously as a positive for the economy and the market overall.”

     While the S&P 500 is trading in the smallest range since at least 1995, with the 2015 low only 6.5 percent below its year- to-date high, options traders are speculating equity swings will return, with many bracing for disturbances in the next six days, judging by the most popular hedges against S&P 500 volatility.  That period includes the two-day Fed gathering.                           

     The Fed is not expected to raise rates, though economic reports since the central bank’s last meeting have pushed the probability for tightening in September to 53 percent, according to data compiled by Bloomberg.

     The yield on 10-year Treasury notes touched the highest level since October in the week in anticipation of higher borrowing costs this year. Chair Janet Yellen may provide clues on the pace of tightening when she holds a press conference following the Fed meeting on June 17.

     “We could see some jaw-boning by the Fed to prepare the markets for an eventual rate increase,” Chris Gaffney, president of EverBank World Markets Inc. in St. Louis, said in a telephone interview. “The data this week has all been pretty good.”

     The University of Michigan’s preliminary consumer sentiment index for June topped all estimates in a Bloomberg survey of economists, while retail sales surged 1.2 percent in May. The gains bolstered speculation the economy is strong enough to withstand higher borrowing costs.

     However, the data weren’t enough to push the S&P 500 back to record levels, as the gauge finished the week 1.7 percent below its May 21 high. The index has gone 15 trading days without a record, the second-longest drought since it topped its 2007 high in 2013. It has averaged about 5 days between records in that period.

     After four months of negotiations, Greece and its creditors ended the week at a renewed impasse with the euro area due to withdraw its financial safety net at the end of the month. German Chancellor Angela Merkel urged the country to accept the framework for financial aid, while International Monetary Fund negotiators left talks earlier in the week.

     “There’s a lot of noise along the way, certainly it looks negative that the IMF pulled their negotiators out of there, but at the end we believe the Greek crisis will work itself out,” Gaffney said.                       

     Seven of the 10 main S&P 500 groups advanced in the week. Financial stocks got a boost from higher interest rates, rising 1 percent to lead gains. Utility shares, sought by some investors for their high dividend yields, slumped 0.5 percent.

     Citrix Systems Inc. climbed 8.5 percent after an investor called for an overhaul to the software company. Jesse Cohn of Elliot Management Corp. said the company should consider selling two of its units, expand its share buyback and recruit more talented managers.

     Energy producers dropped 0.9 percent. Transocean Ltd. lost 7.3 percent to lead a slump among offshore drillers after Barclays Plc’s investment-banking unit initiated coverage of the group with a negative outlook, in part citing low oil prices and an oversupplied rig market. Shares in energy companies also slipped amid concerns about a record pace of production from OPEC’s biggest members.

     Airlines slumped 3.6 percent in the week after American Airlines Group Inc. joined Delta Air Lines Inc. in saying its benchmark revenue gauge will decline more than forecast as domestic demand decreases. Southwest Airlines Co. slid 5.8 percent and Delta lost 4.1 percent.

 

Have a wonderful weekend everyone.

 

Be magnificent!

You are never alone because you are full of all the memories, all the conditioning,

all the mutterings of yesterday; your mind is never clear of all the rubbish it has accumulated.

To be alone, you must die to the past.

When you are alone, totally alone, not belonging to any family, any nation, any culture,

any particular continent, there is that sense of being an outsider.

The man who is completely alone in this way is innocent and it is this innocence that frees the mind from sorrow.

Krishnamurti

 

As ever,

 

Carolann

 

The only place where success comes before work is in the dictionary.

                                                         -Vidal Sassoon, 1928-2012

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Britain’s Prime Minister David Cameron (l.) welcomes Prince Harry as he arrives to attend the Service of Dedication to inaugurate the Bastion Memorial at the National Memorial Arboretum in Alrewas, England on Thursday. Eddie Keogh/Reuters

Women walk near the glass floor area on the 37th floor of the China Central Television (CCTV) tower on Thursday, next to construction sites in Beijing’s central business district. Jason Lee/Reuters

Market Closes for June 11^th, 2015

Market Index	Close	Change
Dow Jones	18039.37	+38.97   +0.22%
S&P 500	2109.06	+3.86   +0.18%
NASDAQ	5082.508	+5.818   +0.11%
TSX	14827.72	-61.32
		-0.41%

International Markets

Market Index	Close	Change
NIKKEI	20382.97	+336.61
		+1.68%
HANG SENG	26907.85	+220.21
		+0.83%
SENSEX	26370.98	-469.52
		-1.75%
FTSE 100	6846.74	+16.47
		+0.24%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.815	1.901
CND. 30 Year Bond	2.407	2.478
U.S.    10 Year Bond	2.3754	2.4802
U.S. 30 Year Bond	3.0940	3.2105

Currencies

BOC Close	Today	Previous
Canadian $	0.81413	0.81557
US $	1.22830	1.22614
Euro Rate 1 Euro=		Inverse
Canadian $	1.38348	0.72281
US $	1.12634	0.88783

Commodities

Gold	Close	Previous
London Gold Fix	1178.50	1188.50
Oil	Close	Previous
WTI Crude Future	60.77	61.43

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, after two days of gains, as commodities producers retreated with the price of crude and metals.

     Teck Resources Ltd. lost 1.9 percent as copper fell the most since January. Athabasca Oil Corp. slid 4.3 percent as oil declined in New York. Valeant Pharmaceuticals International Inc. increased 2.2 percent after the drugmaker said it will appoint a new chief financial officer.

     The Standard & Poor’s/TSX Composite Index lost 58.16 points, or 0.4 percent, to 14,830.88 at 4 p.m. in Toronto. The loss halted a two-day rally of 1 percent and cut the S&P/TSX’s advance this year to 1.4 percent.

     Seven of 10 industries in the benchmark index TSX retreated on trading volume 16 percent lower than the 30-day average.

     Yamana Gold Inc. lost 4.8 percent and Silver Wheaton Corp. retreated 0.9 percent as raw-materials producers declined 1.5 percent as a group. First Quantum Minerals fell 3.5 percent and Lundin Mining Corp. lost 3.6 percent.

     Trinidad Drilling fell 9.7 percent, the most since 2011, and Suncor Energy Inc. lost 2 percent. Oil fell 1.1 percent in New York after the International Energy Agency said this year’s price rally is under threat as OPEC’s biggest members pump record amounts of crude.

     Trinidad Drilling agreed to acquire CanElson Drilling Inc. in a deal valued at about $505 million, including the assumption of $36 million in CanElson debt. BMO Capital Markets analyst Michael Mazar said he was “struggling” to see the rationale behind the deal as he downgraded the stock to market perform, the equivalent of a hold.

     U.S. retail sales increased 1.2 percent in May, matching the median forecast of economists surveyed by Bloomberg and following a 0.2 percent gain in April. The data show American consumers are ready to spend on more than just automobiles, unlocking months of savings from cheap gasoline. The U.S. is Canada’s largest trading partner.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks rose after data on retail sales and jobs bolstered confidence in the strength of the economy, while investors watched for progress in Greece’s debt negotiations.

     Transportation companies, led by railroads, rallied for a second day. Citrix Systems Inc. climbed 6.7 percent after an activist investor called for an overhaul to the software company. Energy shares retreated as offshore drillers slumped on negative analyst comments. Twitter Inc. jumped as much as 13 percent in late trading after the company said Chief Executive Dick Costolo is stepping down.

     The Standard & Poor’s 500 Index advanced 0.2 percent to 2,108.86 at 4 p.m. in New York, after earlier rising as much as 0.5 percent. The Dow Jones Industrial Average rose 38.97, or 0.2 percent, to 18,039.37. The Nasdaq Composite Index added 0.1 percent.

     “It’s a contest right now between the improving economy and fears about Greece,” said Brad McMillan, chief investment officer of Waltham, Massachusetts-based Commonwealth Financial Network, which oversees $97 billion. “The economy really is improving and the first quarter was not the end of the world, but Greece is the big thing people are watching in the short- term.”

     The International Monetary Fund said its team negotiating with Greece left Brussels after failing to make progress on a debt deal. Meanwhile, European Union President Donald Tusk told Greece Prime Minister Alexis Tsipras to stop maneuvering and decide whether to accept the conditions on financial aid. The S&P 500 jumped 1.2 percent on Wednesday, the most in a month, amid optimism that progress was being made in the talks.

     Greece’s Tsipras has promised Germany and France that he will step up efforts to find a package of reforms and budget fixes before the country’s bailout agreement expires at the end of the month.

     Data earlier showed sales at retailers picked up in May, a sign households are finally willing to put the gains from continued job growth and lower fuel prices to work. Sales increases were broad-based, with auto dealers, clothing and building material stores among the best performers. A separate report showed applications for unemployment benefits remained below 300,000 for a 14th straight week, a sign of labor market strength.

     The S&P 500 had tumbled 2.4 percent from its May record to a two-month low amid concern the Federal Reserve will raise benchmark rates as early as September. The equity gauge this year has traded in its tightest weekly range since the mid-’90s, signaling investor uncertainty as to whether the economic recovery is strong enough to withstand a rate increase.

     “For the markets to do better we need good news about the economy,” said Krishna Memani, the New York-based chief investment officer at Oppenheimer Funds Inc. “If the retail sales data was weak, we would have had a problem, but it isn’t. While the data isn’t knocking the cover off the ball, it’s reasonable and a solid recovery.”

     The Chicago Board Options Exchange Volatility Index fell 2.8 percent Thursday to 12.85, a three-week low. The gauge, known as the VIX, is down 9.6 percent since Friday, on track for the biggest weekly drop since April.

     Twitter rose 5.8 percent as of 4:50 p.m. after announcing the management change. Jack Dorsey, a Twitter co-founder, will take Costolo’s place in the interim until the company can find a replacement, Twitter said in a regulatory filing.

     Seven of the S&P 500’s 10 main industries gained for a second day, led by health-care, utility and phone company shares. About 5.8 billion shares traded hands Thursday, 9 percent below the three-month average.

     Railroads led transportation and industrial companies higher, as the Dow Jones Transportation Average climbed for a second day, up 1.1 percent. CSX Corp. rose 2.9 percent, the most in a month, as speculation of a merger with a Canadian railroad continues to swirl. Kansas City Southern gained 2 percent. Among airlines, Hawaiian Holdings Inc. and Alaska Air Group Inc. increased at least 1.7 percent.

     Biogen Inc. and Amgen Inc. advanced more than 1.3 percent to pace a climb in health-care shares. Baxter International climbed 3.4 percent, the drug maker’s biggest increase since November.

     Eli Lilly & Co. added 4.1 percent to a 14-year high, leading the group as it rose for a fifth day. The company has said it plans to release more clinical trial data next month on an experimental Alzheimer’s drug, raising optimism among investors that the details will be encouraging.

     Utilities were up for a second day and posted their biggest move higher in almost a month. Duke Energy Corp., Xcel Energy Inc. and Eversource Energy each added at least 1 percent.

     Citrix Systems Inc. jumped 6.7 percent, the most in the S&P 500 and to an eight-month high. Activist investor Jesse Cohn of Elliot Management Corp. said the company should consider selling two of its units, expand its share buyback and recruit more talented managers.

     Chipmaker Integrated Silicon Solution, Inc. rose 5.4 percent to its highest level since 2000 after Uphill Investment Co. raised its takeover offer.

     An S&P index of homebuilders climbed amid signs consumers are more willing to spend. Toll Brothers Inc. and KB Home gained at least 1 percent. Apparel retailer Gap Inc. added 1.9 percent. Ford Motor Co. rose 1.7 percent, the most in three months, amid strong May auto sales.

     Energy companies slipped as crude prices fell amid concerns about a record pace of production from OPEC’s biggest members. Chesapeake Energy Corp. lost 4.3 percent to its lowest level in more than six years after Oppenheimer & Co. downgraded the shares.

     Transocean Ltd. dropped 5 percent, the most in the S&P 500. Barclays Capital Inc. initiated coverage of offshore drillers with a negative outlook, in part citing low oil prices and an oversupplied rig market. Diamond Offshore Drilling Inc. and Noble Corp. slid more than 3.9 percent.

 

Have a wonderful evening everyone!

 
Be magnificent!

“You can’t use up creativity.  The more you use, the more you have.” –Maya Angelou

 

As ever,

Karen 

“It’s not the years in your life that count. It’s the life in your years.” –Abraham Lincoln
 

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

This has been around for awhile, but with politics in high gear around the world and election rhetoric starting to heat up, worth another read 🙂 

How to understand the world through “Cow POLITICS”

DEMOCRATIC
You have two cows.
Your neighbor has none
You feel guilty for being successful.
Barbara Streisand sings for you.

REPUBLICANISM
You have two cows.
Your neighbor has none. So?

SOCIALIST
You have two cows.
The government takes one and gives it to your neighbor.
You form a cooperative to tell him how to manage his cow.

COMMUNIST
You have two cows.
The government seizes both and provides you with milk.
You wait in line for hours to get it.  It is expensive and sour.

CAPITALISM, AMERICAN STYLE
You have two cows.
You sell one, buy a bull, and build a herd of cows.

BUREAUCRACY, AMERICAN STYLE
You have two cows.
Under the new farm program the government pays you to shoot one, milk the other, and then pours the milk down the drain.

AMERICAN CORPORATION
You have two cows.
You sell one, lease it back to yourself and do an IPO on the 2nd one.
You force the two cows to produce the milk of four cows. You are surprised when one cow drops dead. You spin an announcement to the analysts stating you have downsized and are reducing expenses.
Your stock goes up.

FRENCH CORPORATION
You have two cows.
You go on strike because you want three cows.
You go to lunch and drink wine.
Life is good.

JAPANESE CORPORATION
You have two cows.
You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk.
They learn to travel on unbelievably crowded trains.
Most are at the top of their class at cow school.

GERMAN CORPORATION
You have two cows.
You engineer them so they are all blond, drink lots of beer, give excellent quality milk, and run a hundred miles an hour.
Unfortunately they also demand 13 weeks of vacation per year.

ITALIAN CORPORATION
You have two cows but you don’t know where they are.
While ambling around, you see a beautiful woman.
You break for lunch.
Life is good.

RUSSIAN CORPORATION
You have two cows.
You have some vodka.
You count them and learn you have five cows.
You have some more vodka.
You count them again and learn you have 42 cows.
The Mafia shows up and takes over however many cows you really have.

TALIBAN CORPORATION
You have all the cows in Afghanistan, which are two.
You don’t milk them because you cannot touch any creature’ private parts.
You get a $40 million grant from the US government to find alternatives to milk production but use the money to buy weapons.

IRAQI CORPORATION
You have two cows.
They go into hiding.
They send radio tapes of their mooing.

POLISH CORPORATION
You have two bulls.
Employees are regularly maimed and killed attempting to milk them.

BELGIAN CORPORATION
You have one cow.
The cow is schizophrenic.
Sometimes the cow thinks he’s French, other times he’s Flemish.
The Flemish cow won’t share with the French cow.
The French cow wants control of the Flemish cow’s milk.
The cow asks permission to be cut in half
The cow dies happy.

FLORIDA CORPORATION
You have a black cow and a brown cow.
Everyone votes for the best looking one.
Some of the people who actually like the brown one best accidentally vote for the black one.
Some people vote for both.
Some people vote for neither.
Some people can’t figure out how to vote at all.
Finally, a bunch of guys from out-of-state tell you which one you think is the  best-looking cow.

PHOTOS OF THE DAY

Students perform a dance as they attend a demonstration march to demand changes in the education system in Santiago, Chile.Catherine Allen/Reuters

A women sells bananas from her bicycle on a road along Hoan Kiem Lake in Hanoi, Vietnam. Ted Anthony/AP

Market Closes for June 10^th, 2015

Market Index	Close	Change
Dow Jones	18000.40	+236.36   +1.33%
S&P 500	2105.20	+25.05   +1.20%
NASDAQ	5076.691	+62.826   +1.25%
TSX	14889.04	+71.33
		+0.48%

International Markets

Market Index	Close	Change
NIKKEI	20046.36	-49.94
		-0.25%
HANG SENG	26687.64	-301.88
		-1.12%
SENSEX	26840.50	+359.25
		+1.36%
FTSE 100	6830.27	+76.47
		+1.13%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.901	1.880
CND. 30 Year Bond	2.478	2.444
U.S.    10 Year Bond	2.4802	2.4384
U.S. 30 Year Bond	3.2105	3.1663

Currencies

BOC Close	Today	Previous
Canadian $	0.81557	0.81046
US $	1.22614	1.23386
Euro Rate 1 Euro=		Inverse
Canadian $	1.38869	0.72010
US $	1.13257	0.88295

Commodities

Gold	Close	Previous
London Gold Fix	1188.50	1177.40
Oil	Close	Previous
WTI Crude Future	61.43	60.14

An economist is someone who sees something happen, and then wonders if it would work in theory. –Ronald Reagan.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day as commodities producers rallied after the price of oil climbed to the highest level this year while gold and copper led metals higher.

     Trican Well Service Ltd. and Enerplus Corp. increased more than 7 percent to pace gains among energy stocks. Dollarama Inc. jumped 2.7 percent after revenue and earnings topped analysts’ estimates. Hudson’s Bay Co. lost 2.1 percent after reporting a first-quarter loss. Teck Resources Ltd. added 0.4 percent as copper rose the most in five weeks. Sun Life Financial Inc. gained 2.6 percent after analysts at RBC Capital Markets upgraded the stock’s rating.

     The Standard & Poor’s/TSX Composite Index climbed 71.33 points, or 0.5 percent, to 14,889.04 at 4 p.m. in Toronto. The S&P/TSX had fallen 2.7 percent in three days before its current run.

     Eight of 10 industries in the benchmark equity gauge advanced on trading volume 3.8 percent lower than the 30-day average.

     The S&P/TSX Energy Index jumped 1.2 percent, extending its two-day gain to 2.7 percent. West Texas Intermediate crude climbed 2.1 percent in New York after rising 3.4 percent on Tuesday. Suncor Energy Inc. added 1 percent and Cenovus Energy Inc. gained 3 percent.

     HudBay Minerals Inc. advanced 2.9 percent. Aluminum, nickel and tin gained in London.

     Semafo Inc. added 2.6 percent and Torex Gold Resources Inc. rose 3.7 percent as gold futures posted the biggest advance in four weeks.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks rose, with technology and financial shares leading a rebound from the biggest drop in two months, amid optimism that progress is being made in Greece’s debt talks.

     All 10 of the Standard & Poor’s 500 Index’s main industries climbed, with tech and financial companies up more than 1.4 percent. Intel Corp. and Microsoft Corp. added at least 1.8 percent. Citigroup Inc. and JPMorgan Chase & Co. gained more than 1.6 percent as financial shares hit a 2015 high. Energy and health-care advanced more than 1.1 percent.

     The Standard & Poor’s 500 Index added 1.2 percent to 2,105.20 at 4:00 p.m. in New York, the biggest jump in a month. The gauge rose above its average prices for both the past 50 and 100 days. The Dow Jones Industrial Average advanced 236.36 points, or 1.3 percent, to 18,000.40 as all 30 members gained. The Nasdaq Composite Index climbed 1.3 percent.

     “The Germans have officially blinked and off we go,” said Michael Block, chief equity strategist at Rhino Trading Partners LLC in New York. “U.S. data has been better in general, but more people are coming around to the fact the Fed is seeing all this volatility in the bond market and is afraid to raise rates, there isn’t too much tumult, oil has stabilized and so we move on.”

     Optimism toward a potential Greek deal with its creditors rose as people familiar with Germany’s position said Chancellor Angela Merkel’s government may be satisfied with Greece committing to at least one economic reform sought by creditors to open the door to bailout funds. The European Central Bank was also said to have raised the level of emergency cash available to Greek banks.

     The S&P 500 fell on Monday to a two-month low before edging higher yesterday. The index had tumbled 2.4 percent from its May record amid concern the Federal Reserve will raise interest rates as early as September.

     The benchmark this year has traded in its tightest weekly range since the mid-’90s, signaling investor uncertainty as to whether the economic recovery is strong enough to withstand a rate increase. Reports on retail sales and jobless claims Thursday may offer further clues.

     “Incoming data will provide more evidence week by week that the world economy is not in a fragile state as some suspected in the first quarter,” said William Hobbs, head of investment strategy at Barclays Plc’s wealth-management unit in London. “Data seems to be pointing a bit upwards and that may be suggesting to some that revenue prospects for the U.S. corporate sector may get better than what was priced in.”

     Economists see an almost 40 percent chance the Fed will delay raising rates beyond September if labor gains weaken or inflation fails to move higher, a Bloomberg News survey showed.

     The Chicago Board Options Exchange Volatility Index fell 8.6 percent Wednesday to 13.22. The gauge, known as the VIX, posted its biggest two-day drop since May 8 after losing 5.4 percent Tuesday. About 6.5 billion shares traded hands on U.S. exchanges, 1.3 percent above the three-month average.

     Intel jumped 1.8 percent to pace gains among chipmakers, rising for the first time in the eight sessions since announcing its acquisition of Altera Corp. Integrated Silicon Solutions Inc. agreed to merger terms with Cypress Semiconductor Corp., which rose 4.3 percent.

     Analog Devices Inc. and Skyworks Solutions Inc. climbed at least 3 percent. Qorvo Inc. added 3.1 percent as it is set to join the S&P 500 after Thursday’s close. Also bolstering the tech sector Wednesday, Apple Inc. increased 1.2 percent, while Facebook Inc. and International Business Machines Corp. climbed more than 1.8 percent.

     Banks added to Tuesday’s gains as the yield on the U.S. 10- Year Treasury hit its highest since September. Higher yields help banks’ profitability in lending. Citigroup and Bank of America Corp. climbed more than 1.6 percent, with Citi closing at its highest level in more than six years.

     Insurance companies rose the most among 24 industry groups in the S&P 500, as they also benefit from higher bond yields. Insurers’ 2.2 percent gain was the strongest in four months, and sent the group to its highest in seven years. Prudential Financial Inc., American International Group Inc. and MetLife Inc. all added at least 2.8 percent. AIG hit its highest level since Oct. 2008.

     Energy shares had their strongest increase in a month, up 1.2 percent as oil futures hit a 2015 high. Chevron Corp. rallied 1.4 percent, while Halliburton Co. and Devon Energy Corp. gained at least 2.1 percent.                       

     Amazon.com Inc. and Walt Disney Co. rose more than 1.2 percent, while Netflix Inc. climbed 3.7 percent to lead the rally in consumer discretionary shares. Netflix reached a fresh record after investors approved a proposal that paves the way for a stock split, and a deal was announced offering the video service in Marriott Hotels.

     Sears Holdings Corp. lost 12 percent, extending a four-day slide to a four-month low. Shares have fallen 26 percent since June 3, hurt by concerns that selling a chunk of its stores will leave less value for investors.

     H&R Block Inc. fell 5.2 percent, the most in the S&P 500 and the shares’ biggest drop in eight months. Credit Suisse downgraded the biggest U.S. tax preparer to neutral from outperform. The shares rose 2.3 percent yesterday after the company posted a third-straight year of higher revenue.

 

Have a wonderful evening everyone.

 

Be magnificent!

What is change?

One form appears, and another disappears.

Can we say that the butterfly used to be a caterpillar?

A substance in the caterpillar takes on the form of the butterfly.

Swami Prajnanpad

As ever,

 

Carolann

 

No one can make you feel inferior without your consent.

                                 -Eleanor Roosevelt, 1884-1962

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

This is something we should all read at least once a week!

1. Life isn’t fair, but it’s still good.

2. When in doubt, just take the next small step.

3. Life is too short to waste time hating anyone.

4. Don’t take yourself so seriously. No one else does.

5. Pay off your credit cards every month.

6. You don’t have to win every argument. Agree to disagree.

7. Cry with someone. It’s more healing than crying alone.

8. It’s OK to get angry with God. He can take it.

9. Save for retirement starting with your first paycheck.

10. When it comes to chocolate, resistance is futile.

11. Make peace with your past so it won’t screw up the present.

12. It’s OK to let your children see you cry.

13. Don’t compare your life to others’. You have no idea what their journey is all about.

14. If a relationship has to be a secret, you shouldn’t be in it.

15. Everything can change in the blink of an eye. But don’t worry; God never blinks.

16. Life is too short for long pity parties. Get busy living, or get busy dying.

17. You can get through anything if you stay put in today.

18. A writer writes. If you want to be a writer, write.

19. It’s never too late to have a happy childhood, the second one is up to you and no one else.

20. When it comes to going after what you love in life, don’t take no for an answer.

21. Burn the candles, use the nice sheets and wear the fancy lingerie. Don’t save it for a special occasion. Today is special.

22. Over prepare, then go with the flow.

23. Be eccentric now. Don’t wait for old age to wear purple.

24. The most important sex organ is the brain.

25. No one is in charge of your happiness except you.

26. Frame every so-called disaster with these words: “In five years, will this matter?”

27. Always choose life.

28. Forgive everyone everything.

29. What other people think of you is none of your business.

30. Time heals almost everything. Given time.

31. However good or bad a situation is, it will change.

32. Your job won’t take care of you when you are sick. Your friends will. Stay in touch.

33. Believe in miracles.

34. God loves you because of who God is, not because of anything you did or didn’t do.

35. Whatever doesn’t kill you really does make you stronger.

36. Growing old beats the alternative – dying young.

37. Your children get only one childhood. Make it memorable.

38. Read the Psalms. They cover every human emotion.

39. Get outside every day. Miracles are waiting everywhere.

40. If we all threw our problems in a pile and saw everyone else’s, we’d grab ours back.

41. Don’t audit life. Show up and make the most of it now.

42. Get rid of anything that isn’t useful, beautiful or joyful.

43. All that truly matters in the end is that you loved.

44. Envy is a waste of time. You already have all you need.

45. The best is yet to come.

46. No matter how you feel, get up, dress up and show up.

47. Take a deep breath. It calms the mind.

48. If you don’t ask, you don’t get.

49. Yield.

50. Life isn’t tied with a bow, but it’s still a gift.

PHOTOS OF THE DAY

Ingeborg Syllm-Rapoport holds up her doctoral certificate during a ceremony at the University Clinic Hamburg-Eppendorf in Hamburg, Germany. Syllm-Rapoport wasn’t allowed to defend her doctoral thesis in 1938 under the Nazis because she was part Jewish. Now, 77 years later, she’s completed all the requirements and is becoming Germany’s oldest recipient of a doctorate at age 102. Bodo Marks/AP

A visitor walks at a path lined with small shrine arches, or ‘torii’ gates, at the entrance of a shrine in Tokyo. Eugene Hoshiko/AP

Market Closes for June 9^th, 2015

Market Index	Close	Change
Dow Jones	17764.04	-2.51   -0.01%
S&P 500	2080.15	+0.87   +0.04%
NASDAQ	5013.867	-7.760   -0.15%
TSX	14817.71	+74.38
		+0.50%

International Markets

Market Index	Close	Change
NIKKEI	20096.30	-360.89
		-1.76%
HANG SENG	26989.52	-326.76
		-1.20%
SENSEX	26481.25	-41.84
		-0.16%
FTSE 100	6753.80	-36.24
		-0.53%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.880	1.814
CND. 30 Year Bond	2.444	2.389
U.S.    10 Year Bond	2.4384	2.3824
U.S. 30 Year Bond	3.1663	3.1144

Currencies

BOC Close	Today	Previous
Canadian $	0.81046	0.80596
US $	1.23386	1.24076
Euro Rate 1 Euro=		Inverse
Canadian $	1.39141	0.71870
US $	1.12768	0.88678

Commodities

Gold	Close	Previous
London Gold Fix	1177.40	1172.80
Oil	Close	Previous
WTI Crude Future	60.14	58.14

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

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, snapping a three-day decline, as energy producers rebounded with the price of crude amid signs U.S. shale producers will reduce their output.

     Pengrowth Energy Corp. soared 9.7 percent after the stock’s rating was upgraded by analysts at National Bank Financial.  Bankers Petroleum Ltd. and Husky Energy Inc. increased at least 2.4 percent as energy producers advanced the most in the benchmark Canadian equity gauge. Canaccord Genuity Group Inc. jumped 7.6 percent to lead financial-services companies higher.

     The Standard & Poor’s/TSX Composite Index rose 74.38 points, or 0.5 percent, to 14,817.71 at 4 p.m. in Toronto, rebounding from a March low yesterday. The gauge had tumbled 2.7 percent in the past three days.

     Suncor Energy Inc. increased 2.3 percent and Canadian Natural Resources Ltd. rose 1.2 percent as energy producers rallied 1.5 percent as a group. Five of 10 industries increased on trading volume 6.6 percent lower than the 30-day average.

     West Texas Intermediate crude surged 3.4 percent to settle at $60.14 a barrel in New York. Output from U.S. shale producers will shrink through July to the lowest level since January, the Energy Information Administration reported Monday.

     First Quantum Minerals Ltd. climbed 5.6 percent and Teck Resources Ltd. added 2.6 percent as copper futures capped the longest rally in five weeks with a third straight gain.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks were little changed, after equities reached a two-month low, as banks rallied amid higher bond yields while airlines weighed on transportation shares and technology companies slipped.

     Bank of America Corp. and Wells Fargo & Co. rose at least 1 percent. Procter & Gamble Co. gained 1.5 percent to lead consumer staples higher. Southwest Airlines Co. slumped amid concern that the domestic travel market is weakening. Technology shares fell for a fourth day, the longest stretch in three months.

     The Standard & Poor’s 500 Index rose less than 0.1 percent to 2,080.15 at 4 p.m. in New York, and snapped a three-day losing streak. The index is down 2.4 percent since it last closed at a record on May 21. The Dow Jones Industrial Average slipped 2.51 points, or less than 0.1 percent, to 17,764.04. The Nasdaq Composite Index fell 0.2 percent.

     “Equities are struggling to maintain their swagger, and it appears we’re transitioning to a wait-and-see mode as investors look forward to the dog days of summer, second-quarter earnings and the Fed raising rates,” said Terry Sandven, who helps oversee $126 billion as chief equity strategist at U.S. Bank Wealth Management in Minneapolis. “We’re likely to trend sideways based on complacency and uncertainty.”

     Reports on consumer sentiment and retail sales are due this week, both of which are forecast to show an improving economy. Jobs data last week showed the strongest hiring in five months and the biggest wage gains in two years, bolstering bets the Federal Reserve will raise interest rates this year.                     

     Investors are also looking for signs of progress in Greece’s debt talks. The country submitted fresh proposals to its creditors in a bid to unlock bailout funds with just three weeks to go before its financial safety net expires. Greece last week rejected a set of policy measures hammered out by creditor institutions, while creditors rebuffed a separate plan put forward by Greece.

     A gauge of stock volatility has been steadily rising, closing at the highest level in more than two months on Monday. The Chicago Board Options Exchange Volatility Index had jumped 26 percent through Monday since this year’s low in May, and is trading above its average level for the past 12 months. The gauge, known as the VIX, fell 5.4 percent Tuesday to 14.47.

     Just as U.S. stocks threaten to give up their gains for the year, an indicator measuring how many companies are keeping the stock market aloft fell to its lowest level in eight months. So few shares have been left behind in the bull market that chart analysts view any sign that breadth is breaking down with concern.

     “It’s like we’re all waiting for a catalyst but we don’t really know where to look,” said Richard Hunter, head of equities at Hargreaves Lansdown Plc in London. “Everyone’s trying to double guess when the Fed’s interest-rate hike will be and mixed data has not really made it too clear. You could buy on dips given the recent selloff, but you can also come up with a bunch of reasons not to invest.”

     Five of the S&P 500’s 10 main groups advanced, led by consumer staples, financial and raw-material companies. Technology and phone companies fell the most. About 5.9 billion shares traded hands on U.S. exchanges, 7.4 percent below the three-month average.

     Procter & Gamble rallied 1.5 percent, the most since March, to boost consumer staples. Walgreens Boots Alliance Inc. and Colgate-Palmolive Co. climbed more than 1 percent.

     The KBW Bank Index added 0.9 percent, with KeyCorp and SunTrust Banks Inc. rising more than 1.3 percent. KeyCorp gained for a third day to its highest since June 2008. Insurers joined banks in advancing with Treasury yields. Lincoln National Corp. and American International Group Inc. gained 0.8 percent.

     Netflix Inc. increased 3.2 percent to an all-time high, amid speculation that the company may announce a stock split at its annual meeting tonight.

     H&R Block Inc., the biggest U.S. tax preparer, rose 2.3 percent as revenue climbed for a third straight year in fiscal 2015 driven by price increases and stronger sales of do-it- yourself tax-preparation products.                        

     A Bloomberg index of U.S. airlines retreated 0.7 percent, after paring an earlier 4.2 percent slide. It was the group’s sixth consecutive drop, the longest losing streak since October.

Southwest Airlines and Alaska Air Group Inc. tumbled more than 3 percent. JetBlue Airways Corp. slid 0.7 percent to a two-month low.

     The Dow Jones Transportation Average briefly fell more than 10 percent Monday from its most recent high, temporarily meeting the common definition of a correction, before trimming its drop.

     Akamai Technologies Inc. fell 2.7 percent, its biggest retreat in more than two months, after Macquarie Securities USA Inc. downgraded the shares to neutral from outperform. Micron Technology Inc. lost 2.8 percent, while Apple Inc. slipped 0.3 percent after erasing an earlier 1.7 percent drop.

 

Have a wonderful evening everyone.

 

Be magnificent!

Life is an aspiration.  Its mission is to strive after perfection, which is self-fulfillment.

The ideal must not be lowered because of our weaknesses or imperfections.

-Mahatma Gandhi

As ever,

 

Carolann

 

We turn not older with years, but newer every day.

                            -Emily Dickinson, 1830-1886

 

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Just back from a fascinating trip through Croatia, Bosnia and Slovenia.  One of the most surprising discoveries is the excellent quality of Croatian wines, especially the reds, especially from Istria, sometimes called the “new Tsuscany”.  It is gratifying to see how prosperous things appear to be.  I  asked one young man with whom I spoke in Slovenia who was a young boy during the war, if there were concerns that things could go awry again, especially with the rumblings in Macedonia these days.  He told me most Slavs are more worried about Putin than anything else….understandably I guess.

On this day in 1949, George Orwell published his classic 1984.

PHOTOS OF THE DAY

More than 173,000 pots of plants and herbs form a flower carpet in front of the city hall in Antwerp, Belgium. To celebrate the 450th anniversary of the Antwerp City Hall, artist Anne-Mie Van Kerckhoven selected 31 different species to create a design of large geometric figures in bright colors. Van Kerckhoven found inspiration in the Renaissance floor of the Plantin-Moretus museum and in a map of the city by the river Scheldt, which dates from 1575, and includes the river bend. The carpet measures 196 by 98 feet. Geert Vanden Wijngaert/AP

Kunekune piglets breastfeed from their mother in Strasswalchen, Salzburg, Austria. The kunekune pig, originally kept by Maori people in New Zealand, is a friendly hairy pig born in a variety of colors. It is one of the smallest domesticated breeds of pig in the world. Kerstin Joensson/AP

Market Closes for June 8^th, 2015

Market Index	Close	Change
Dow Jones	17766.55	-82.91   -0.46%
S&P 500	2079.28	-13.55   -0.65%
NASDAQ	5021.629	-46.829   -0.92%
TSX	14743.33	-213.83
		-1.43%

International Markets

Market Index	Close	Change
NIKKEI	20457.19	-3.71
		-0.02%
HANG SENG	27316.28	+56.12
		+0.21%
SENSEX	26523.09	-245.40
		-0.92%
FTSE 100	6790.04	-14.56
		-0.21%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.814	1.827
CND. 30 Year Bond	2.389	2.391
U.S.    10 Year Bond	2.3824	2.4076
U.S. 30 Year Bond	3.1144	3.1136

Currencies

BOC Close	Today	Previous
Canadian $	0.80596	0.80415
US $	1.24076	1.24355
Euro Rate 1 Euro=		Inverse
Canadian $	1.40004	0.71426
US $	1.12837	0.88623

Commodities

Gold	Close	Previous
London Gold Fix	1172.80	1164.60
Oil	Close	Previous
WTI Crude Future	58.14	59.13

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a third day, reaching the lowest level since March, as energy producers retreated with the price of crude amid speculation a global surplus will persist.

     Sherritt International Corp. lost 2.1 percent as workers at its nickel project in Madagascar may go on strike. Sandvine Corp. plunged 9.1 percent after providing a second-quarter revenue forecast short of analysts’ estimates. Enbridge Inc. and Suncor Energy Inc. slipped at least 2.6 percent to pace declines among energy shares.

     The Standard & Poor’s/TSX Composite Index lost 213.83 points, or 1.4 percent, to 14,743.33 at 4 p.m. in Toronto, the lowest since March 13. The benchmark Canadian equity gauge has tumbled 2.7 percent in three days, paring Canada’s advance for the year to 0.8 percent.

     “There’s some fear of when the Fed will raise rates, after the numbers from the jobs report on Friday,” said Ian Nakamoto, director of research at MacDougall MacDougall & MacTier Inc. His firm manages about C$5.3 billion ($4.27 billion). “The Europe situation, that will be to the last minute. And there seems to be a knock-on effect with the banks, people are wondering how much exposure they have to the energy sector.”

     Toronto-Dominion Bank tumbled 1.6 percent and Royal Bank of Canada dropped 1.2 percent as financial-services companies retreated 1.2 percent as a group. All 10 industries in the S&P/TSX retreated.

     Potash Corp. of Saskatchewan Inc., the fertilizer producer, lost 2 percent and First Quantum Minerals Ltd. retreated 2.1 percent as raw-materials producers retreated 0.8 percent.

     China imports plunged 18 percent in May, the most in three months, while exports fell for a third straight month, underscoring weakening growth in the Chinese economy. The country is Canada’s second-largest trading partner after the U.S.

     Canadian National Railway Co. and Canadian Pacific Railway Ltd. lost at least 2.2 percent to send industrial shares lower.

     Enbridge retreated 3.6 percent and TransCanada Corp. lost 1.9 percent as energy producers declined 2.5 percent. West Texas Intermediate oil retreated 1.7 percent to $58.14 a barrel in New York, after posting the first weekly decline since March last week.

     Investors are turning their attention to the risk of Iranian shipments adding to global supply after the Organization of Petroleum Exporting Countries decided to maintain its output target.

US

By Oliver Renick

     (Bloomberg) — The Standard & Poor’s 500 Index fell to a two-month low amid declines in airline and semiconductor shares, as investors considered the timing of an interest-rate increase and the outlook for Greece’s debt talks.

     Airlines retreated on concerns about capacity growth, while chipmakers slid for a sixth straight day. Intel Corp. decreased 1.7 percent. EBay Inc. sank after its PayPal unit trimmed its 2015 free-cash flow view. Wynn Resorts Ltd. lost 6.2 percent to weigh on consumer discretionary shares. Sealed Air Corp. added 1.2 percent after Jefferies LLC said the company may buy back more than $1 billion in shares.

     The S&P 500 Index dropped 0.7 percent to 2,079.28 at 4 p.m. in New York, the lowest since April 7, and below its average price during the last 100 days. The Dow Jones Industrial Average lost 82.91 points, or 0.5 percent, to 17,766.55. The Dow also closed at a two-month low and erased its 2015 gain. The Nasdaq Composite Index declined 0.9 percent.

     “Investors want to see stronger growth and they are still trying to figure out when the Fed is likely to move and that’s a good three months away,” said Peter Dixon, an economist at Commerzbank AG in London. “Equities have had such a good run until recently that people are taking a bit of risk off the table and standing on the sidelines deciding how to play this.”

     Reports on consumer sentiment and retail sales are due this week, both of which are forecast to show an improving economy. Jobs data Friday showed the strongest hiring in five months and the biggest wage gains in two years, bolstering bets the Federal Reserve will raise interest rates this year.

     Investors are also looking for signs of progress in negotiations between Greece and its international creditors. With talks resuming in Brussels on Monday, Prime Minister Alexis Tsipras faced a united front from Group of Seven leaders calling for movement to end the impasse and avert the risk of wider economic reverberations.

     The S&P 500 posted back-to-back weekly declines for the first time since March as investors weigh equity valuations amid the potential Fed rate increase this year.

     Consumer expectations for inflation rebounded in May, according to a Fed Bank of New York survey, as officials look for evidence that price pressures are firming.

     In the quarter after the last 12 tightening cycles began, price-earnings ratios on the benchmark index contracted by an average of 7.2 percent. It’s something else to worry about as the Fed prepares to lift rates in an economy that is still far from booming.                           

     Should policy makers move before January, they would be doing so in a year when U.S. profits are forecast by analysts to increase 1.4 percent. That represents the weakest growth at the start of a tightening cycle since 1980.

     “People talk about how equities have done well six months after tightening but the Fed has never been at zero for this long,” said Andrew Brenner, the head of international fixed income for National Alliance Capital Markets. “It’s inevitable an equity correction is coming.”

     The Chicago Board Options Exchange Volatility Index gained 7.6 percent to 15.29, its highest close in more than two months. The gauge, known as the VIX, marked a second consecutive weekly advance Friday. About 5.6 billion shares traded hands on U.S.exchanges Monday, about 13 percent below the three-month average.

     Nine of the S&P 500’s 10 main groups declined, with technology, industrial and consumer discretionary companies leading the drop. Phone companies climbed as Verizon Communications Inc. bounced 0.4 percent after sliding 1.8 percent Friday. Frontier Communications Corp. rose 1.3 percent.

     Semiconductors in the S&P 500 fell as Avago Technologies Ltd. and Micron Technology Inc. sank at least 2.5 percent. Avago’s buyout target Broadcom Corp. decreased 2 percent. Intel extended its losing streak to six days, the longest since January 2014. Shares lost 1.7 percent and are down more than 9 percent since announcing on June 1 its $16.7 billion deal to buy Altera Corp.

     Also dragging down the tech group, Apple Inc. slumped 0.7 percent, earlier down as much as 1.4 percent, and Facebook Inc. fell 1.8 percent. International Business Machines Corp. declined 1.2 percent to a seven-week low.                         

     A Bloomberg gauge of U.S. airlines tumbled 4.4 percent to its lowest since November. JetBlue Airways Corp. retreated 7.2 percent, and American Airlines Group Inc. dropped 4.5 percent as Raymond James Financial Inc. downgraded its shares. The firm also cut Delta Air Lines Inc. and United Continental Holdings Inc., which slid more than 4.3 percent. The Dow Jones Transportation Average lost 2.1 percent.

     Wynn Resorts fell 6.2 percent, the most in more than a month after several analysts said gambling revenue this month in Macau will be below their initial estimates. Las Vegas Sands Corp. and MGM Resorts International declined at least 5 percent.

     Energy shares erased an early gain to fall along with oil prices. Devon Energy Corp. and Apache Corp. lost more than 1.9 percent. Chevron Corp. dropped 1.2 percent to an almost three- year low.

 

Have a wonderful evening everyone.

 

Be magnificent!

If you are in the moment, you are in the infinite.

-Swami Prajnanpad

As ever,
 

Carolann

 

Genius without education is like silver in the mine.

                       -Benjamin Franklin, 1706-1790

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Tourists admire Indian-born British artist Anish Kapoor’s ‘C-Curve,’ a 2007 stainless steel creation, which is now located in the gardens of the Chateau de Versailles, in France. The ‘Kapoor Versailles’ exhibition, which includes ‘C-Curve’ and other sculptures, runs from June 9 to Nov. 1. Kamil Zihnioglu/AP

Cuban crocodiles crawl around at a hatchery at Zapata Swamp National Park in Cuba. Ten baby crocodiles have been delivered to the hatchery in hopes of strengthening the species and extending the bloodlines of a pair of Cuban crocodiles that former President Fidel Castro had given to a Soviet cosmonaut as a gift in the 1970s. Alexandre Meneghini/Reuters

Market Closes for June 5^th, 2015

Market Index	Close	Change
Dow Jones	17849.46	-56.12   -0.31%
S&P 500	2092.83	-3.01   -0.14%
NASDAQ	5068.458	+9.333   +0.18%
TSX	14957.16	-62.23
		-0.41%

International Markets

Market Index	Close	Change
NIKKEI	20460.90	-27.29
		-0.13%
HANG SENG	27260.16	-291.73
		-1.06%
SENSEX	26768.49	-44.93
		-0.17%
FTSE 100	6804.60	-54.64
		-0.80%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.827	1.741
CND. 30 Year Bond	2.391	2.335
U.S.    10 Year Bond	2.4076	2.3070
U.S. 30 Year Bond	3.1136	3.0423

Currencies

BOC Close	Today	Previous
Canadian $	0.80415	0.79980
US $	1.24355	1.25031
Euro Rate 1 Euro=		Inverse
Canadian $	1.38221	0.72348
US $	1.11150	0.89968

Commodities

Gold	Close	Previous
London Gold Fix	1164.60	1176.00
Oil	Close	Previous
WTI Crude Future	59.13	58.00

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell for a second day, ending at a two-month low, after gold miners slumped as the dollar surged amid better-than-forecast hiring gains in the U.S. and Canada.

     Goldcorp Inc. and Barrick Gold Corp. each dropped 2.7 percent as gold plunged to an 11-week low amid speculation the Federal Reserve will raise interest rates this year. Saputo Inc. sank 2.6 percent to a November low for a second day of losses after reporting fourth-quarter earnings that missed estimates.

     The Standard & Poor’s/TSX Composite Index slipped 62.23 points, or 0.4 percent, to 14,957.16 at 4 p.m. in Toronto. The gauge dropped 0.4 percent for the week.

     “The market is deciding these numbers are good enough to even satisfy the Fed,” said David Cockfield, a fund manager at Northland Wealth Management in Toronto. His firm manages about C$325 million ($259 million). “The employment side is improving and September looks a lot more certain. The dollar’s anticipating this.”

     Treasuries tumbled and the U.S. dollar rose, while U.S. equities were little changed American payrolls jumped the most in five months in May, bolstering the case that a slowdown in growth was temporary and clearing the way for a possible rate increase later this year.

     Canada added six times as many jobs in May as economists predicted, with the job market proving robust even as the economy recovers from the effects of plunging crude-oil prices.

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

     Gold producers led a drop in miners. Agnico Eagle Mines Ltd. stumbled 3.2 percent and Detour Gold Corp. dropped 1.7 percent.

     Energy producers lost 0.3 percent, while health-care shares added 0.3 percent.

     Oil capped a weekly loss as the Organization of Petroleum Exporting Countries agreed to maintain its production target at Friday’s meeting in Vienna, leaving the market oversupplied. West Texas Intermediate crude fell 1.9 percent this week, snapping a record 11-week rally.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks traded in their tightest weekly range in 21 years as investors sorted through data that kept them guessing about the economy’s resiliency.

     Equities slipped in the five days after zigzagging between gains and losses, with the Standard & Poor’s 500 Index ending the period lower by 0.7 percent. That’s the sixth straight week with a move of less than 1 percent, the longest stretch of calm since May 1994.

     Friday’s action was a microcosm of the week, as the index swung from green to red more than a dozen times. Jobs data that showed the strongest hiring in five months and the biggest wage gains in two years bolstered optimism in the economy and fueled bets the Federal Reserve will raise interest rates this year. Equities investors, already skittish amid a selloff in global bonds and signs Greece’s debt standoff could end in default, are weighing whether higher borrowing costs will snuff out a recovery struggling to gain traction.

     “Economic strength is the long-term driver,” Kate Warne, an investment strategist at Edward Jones & Co. in St. Louis, said by phone. “The trend overall is modestly positive, but we’re likely to see this choppiness along the way. There’s a worry every day and there’s also a resolution for one of those worries every day, so we have this up and down pattern. There is still uncertainty about various issues.”

     The S&P 500 finished the week 1.8 percent below its May 21 record. The gauge has not moved more than 1 percent in either direction in 14 of the past 15 sessions, and the spread between the highest and lowest close this year has been only 6.9 percent, the narrowest since 2006.

     Investors digested a mixed batch of economic data, with growth in manufacturing offsetting reports that showed consumer spending stalled and factory orders slipped. Friday’s jobs data tipped the scales in favor of a rebound, as the 280,000 increase in non-farm payrolls in May further dispelled fears that a first-quarter slowdown would persist.

     The hiring report sent 10-year Treasury yields surging to the highest level this year and pushed the dollar to a 13-year high versus the yen as investors speculated the Fed will boost rates in September. Traders of money-market derivatives lifted the chance of the Fed raising rates then to over 50 percent, according to CME Group data.

     “The market was a little bit unsettled,” Greg Woodard, senior analyst and strategist at Fairport, New York-based Manning & Napier Inc., which oversees about $46 billion. “With some of the uncertainties out there and couple that with valuations that are as not attractive as they were a couple years ago, you’re seeing a little bit sideways trading in the market. People are certainly keeping an eye on Greece.”

     Among the week’s worries were downgrades to economic forecasts. The Organization for Economic Cooperation and Development cut its global-growth prediction and the International Monetary Fund lowered its U.S. outlook. The IMF also urged the Fed to postpone a rate increase until 2016.

     Fed Bank of New York President William C. Dudley said the central bank is still likely to start raising borrowing costs this year if the labor market improves further.

     Investors are also seeking progress in Greek negotiations after the country deferred a loan payment. Greece said it will bundle a payment due Friday along with three others it owes the IMF by the end of the month. The country rejected demands for more austerity to receive bailout funds.

     The Stoxx Europe 600 Index slipped 2.7 percent for the five-day period, extending its two-week decline to 4.6 percent. German 10-year bunds had their worst week since 1998, with yields surging 36 basis points.

     Volatility in equities rose for a second straight week as the Chicago Board Options Exchange Volatility Index climbed 2.7 percent. The gauge known as the VIX fell to its lowest level this year on May 21.

     Seven of the S&P 500’s main groups decreased for the week, led by losses of at least 2.5 percent for consumer-staple and utility stocks.

     The group of power companies in the benchmark gauge fell as the yield on 10-year Treasuries rose 29 basis points, the biggest five-day gain since the first week of February.

     The stronger dollar weighed on consumer-staples producers as Philip Morris International Inc. and General Mills Inc. slipped more than 3 percent.

     The S&P 500 energy index lost 1 percent amid a 1.9 percent decline in crude oil prices, the resource’s first weekly drop since the five days ended March 13. Valero Energy Corp. and Marathon Petroleum Corp. fell more than 2.4 percent.

 

Have a wonderful weekend everyone!

 
Be magnificent!

“A person who never made a mistake never tried anything new.” – Albert Einstein

 

As ever,

Karen 

“If you can dream it, you can achieve it.” –Zig Ziglar

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

Balloons bearing messages from young people are released over Tutzing Castle near Lake Starnberg in Germany, in the run-up to the G7 Summit in Schloss Elmau which begins on June 7. The youth initiative Plant-for-the-Planet has called upon the G7 heads of government to support the greatest reforestation project in the history of humankind. Plant-for-the-Planet/AP

A laborer carries a basket of tomatoes on his head while walking along a row of empty wooden boxes in a vegetable wholesale market in Lahore, Pakistan. Mohsin Raza/Reuters

Market Closes for June 4^th, 2015

Market Index	Close	Change
Dow Jones	17905.58	-170.69   -0.94%
S&P 500	2095.84	-18.23   -0.86%
NASDAQ	5059.125	-40.106   -0.79%
TSX	15019.39	-135.29
		-0.89%

International Markets

Market Index	Close	Change
NIKKEI	20488.19	+14.68
		+0.07%
HANG SENG	27551.89	-105.58
		-0.38%
SENSEX	26813.42	-23.78
		-0.09%
FTSE 100	6859.24	-91.22
		-1.31%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.741	1.780
CND. 30 Year Bond	2.335	2.369
U.S.    10 Year Bond	2.3070	2.3642
U.S. 30 Year Bond	3.0423	3.1022

Currencies

BOC Close	Today	Previous
Canadian $	0.79980	0.80300
US $	1.25031	1.24532
Euro Rate 1 Euro=		Inverse
Canadian $	1.40481	0.71184
US $	1.12357	0.89018

Commodities

Gold	Close	Previous
London Gold Fix	1176.00	1190.00
Oil	Close	Previous
WTI Crude Future	58.00	59.64

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, erasing a three-day advance, as crude and gold prices declined amid a standoff in Greek debt talks and speculation OPEC will refrain from cutting its production targets.

     MEG Energy Corp. and Bellatrix Exploration Ltd. dropped more than 4.8 percent as crude slid to a seven-week low. Barrick Gold Corp. lost 2.1 percent as gold retreated. Teck Resources Ltd. and First Quantum Minerals Ltd. tumbled at least 2.9 percent as copper slumped with base metals.

     The Standard & Poor’s/TSX Composite Index fell 135.29 points, or 0.9 percent, to 15,019.39 at 4 p.m. in Toronto. The benchmark equity gauge had risen 0.9 percent in the previous three trading days.

     Raw-materials and energy producers sank at least 1.2 percent. All 10 industries in the S&P/TSX retreated on trading volume 9.1 percent lower than the 30-day average.

     OceanaGold Corp. lost 4.2 percent and Centerra Gold Inc. slipped 5.1 percent. Gold for August delivery tumbled 0.8 percent to settle at $1,175.20 an ounce in New York, a four-week low. Copper dropped to the lowest in six weeks as industrial metals from aluminum to zinc retreated on concern slowing economic growth from China to U.S. will curb demand.

     The Organization of Petroleum Exporting Countries is forecast to keep its output target unchanged on Friday, according to all but one of 34 analysts and traders in a Bloomberg survey last month.

     The International Monetary Fund urged the Federal Reserve to delay raising interest rates until the first half of 2016 as it cut its U.S. growth forecast to 2.5 percent this year.

     Negotiations over Greece’s debt continued, with the country becoming the first to defer a payment to the IMF since the 1980s. The first of four payments was originally due this Friday and totals almost 1.6 billion euros ($1.78 billion) this month. The latest round of talks, between Greek Prime Minister Alexis Tsipras and European Commission President Jean-Claude Juncker, failed to yield a breakthrough.

US

 By Joseph Ciolli

     (Bloomberg) — U.S. stocks declined, with the Standard & Poor’s 500 Index reaching a four-week low, as a slide in oil and metals weighed on commodities producers and Greece asked for a deferral on its debt payments.

     Freeport-McMoRan Inc., DuPont Co. and fertilizer maker Mosaic Co. lost at least 1.7 percent. Chesapeake Energy Corp. dropped 3.8 percent to lead the energy group lower. Verizon Communications Inc. slid 2 percent after an analyst downgrade. Apparel maker L Brands Inc. added 1.2 percent as May sales exceeded estimates. Wynn Resorts Ltd. jumped 7.2 percent on signs of improvement in Macau’s gambling economy.

     The S&P 500 lost 0.9 percent to 2,095.84 at 4 p.m. in New York. The index fell below its average price during the past 50 days, though it’s still within 1.7 percent of its all-time high. The Dow Jones Industrial Average declined 170.69 points, or 0.9 percent, to 17,905.58. The Nasdaq Composite Index retreated 0.8 percent. About 6.3 billion shares traded hands on U.S. exchanges, 2.3 percent below the three-month average.

     “We’ve hit a point where we have conflicting sentiment, and that’s why we’re sitting here and grinding sideways,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. “Stock investors are taking an eyebrow-raised look at the bond market, wondering if they’re missing anything. Plus you always have the Greece situation always lurking around in the background.”

     The S&P 500 has alternated between gains and losses in the past four sessions as it churns in the tightest trading range at this time of year since 2006. The index hasn’t had a 10 percent decline since October 2011, the longest stretch without a drop of that magnitude since a 55-month period ending in October 2007.

     Greece today became the first country to defer a payment to the International Monetary Fund since the 1980s as its game of brinkmanship with creditors goes down to the wire. With Prime Minister Alexis Tsipras getting ready to address parliament on Friday after receiving a list of creditors’ demands, the step underscores the state of the country’s shriveling finances.

     Global bond markets recovered from an earlier selloff, which took the yield on the 10-Year U.S. Treasury to its highest level since October. European Central Bank chief Mario Draghi said yesterday markets should get used to greater volatility while forecasting faster euro-area inflation rates.

     Investors are closely watching economic data for clues on timing of a potential interest rate rise from the Federal Reserve. Fed Bank of St. Louis President James Bullard said Wednesday “markets have appropriately moved back the likely date of policy firming,” amid recent weaker-than-forecast data.

     The IMF said today the Fed should hold off from raising interest rates until the first half of 2016, as the fund cut its U.S. growth forecast for the second time in three months.

     A report today showed jobless claims decreased by 8,000 in the latest week, while the total number of people receiving unemployment insurance payments was the smallest in more than 14 years, signaling the job market remains firm.

     The government’s monthly employment data are due Friday, and economists predict the economy added 225,000 jobs in May, compared with April’s 223,000, with the unemployment rate remaining at 5.4 percent.

     The Chicago Board Options Exchange Volatility Index jumped 7.7 percent Thursday to 14.71, its highest since May 7. The gauge, known as the VIX, last month had its steepest drop since February.

     All of the S&P 500’s 10 main groups slumped Thursday, with raw-material and energy shares dropping the most after the IMF cut its U.S. growth forecast. The materials group hit a six-week low. Chemical maker LyondellBasell Industries NV lost 3.2 percent, its biggest slide since March. Monsanto Co. fell 1.9 percent to its lowest in more than two months.

     Capital goods producers Precision Castparts Corp. and Illinois Tool Works Inc. declined at least 1.7 percent. Boeing Co. and Textron Inc. retreated 1.8 percent.

     Exxon Mobil Corp. slid 0.9 percent near a two-month low as West Texas Intermediate crude fell 2.8 percent. Chesapeake Energy, Transocean Ltd. and Diamond Offshore Drilling Inc. all sank more than 1.8 percent, with energy companies in the S&P 500 dropping for the eighth time in nine sessions.

     Banks in the benchmark index fell for first time in four days as Treasury yields slipped from their highest level in almost eight months. Wells Fargo & Co. retreated 1.4 percent after closing Wednesday at an all-time high, while Bank of America Corp. lost 0.9 percent.

     Transportation companies reversed Wednesday’s gains, with airlines pacing the decline. JetBlue Airways Corp., American Airlines Group Inc. and United Continental Holdings Inc. fell at least 1.6 percent. The Dow Jones Transportation Average decreased 0.9 percent after rallying 1.2 percent Thursday.

     Verizon dropped 2 percent, the most since December, to a nearly three-month low after JPMorgan Chase & Co. downgraded the shares to neutral from overweight.

     T-Mobile US Inc. gained 2.6 percent to a seven-year high after a report that the fourth-largest U.S. wireless company is in talks to merge with Dish Network Corp. Dish jumped 4.9 percent, the most since November.

 

Have a wonderful evening everyone!

 
Be magnificent!

“Believe you can and you’re halfway there.” –Theodore Roosevelt               

 

As ever,

Karen

“ Life is not measured by the number of breaths we take, but by the moments that take our breath away.” –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

A commercial aircraft flies past the moon in this photo taken from Teglas, 228 kilometers (about 140 miles) east of Budapest, Hungary.

Joggers run past a painted mural along the BeltLine in Atlanta. Today marks National Running Day, celebrated annually on the first Wednesday in June. National Running Day was created in 2009 by some of the county’s biggest running clubs and organizations to draw attention to the benefits of the activity. David Goldman/AP

Market Closes for June 3^rd, 2015

Market Index	Close	Change
Dow Jones	18076.27	+64.33   +0.36%
S&P 500	2114.07	+4.47   +0.21%
NASDAQ	5099.231	+22.707   +0.45%
TSX	15154.68	+49.94
		+0.33%

International Markets

Market Index	Close	Change
NIKKEI	20473.51	-69.68
		-0.34%
HANG SENG	27657.47	+190.75
		+0.69%
SENSEX	26837.20	-351.18
		-1.29%
FTSE 100	6950.46	+22.19
		+0.32%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.780	1.710
CND. 30 Year Bond	2.369	2.297
U.S.    10 Year Bond	2.3642	2.2624
U.S. 30 Year Bond	3.1022	3.0143

Currencies

BOC Close	Today	Previous
Canadian $	0.80300	0.80600
US $	1.24532	1.24070
Euro Rate 1 Euro=		Inverse
Canadian $	1.40279	0.71287
US $	1.12644	0.88775

Commodities

Gold	Close	Previous
London Gold Fix	1190.00	1192.80
Oil	Close	Previous
WTI Crude Future	59.64	61.26

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a third day as Canaccord Genuity Group Inc. surged to lead financial services shares and investors watched the continuing Greek debt talks.

     WestJet Airlines Ltd. advanced 0.7 percent after posting an increase in traffic for May. Canaccord climbed 4.5 percent after reporting better-than-forecast earnings. Stingray Digital Group Inc. surged 16 percent in its trading debut.

     The Standard & Poor’s/TSX Composite Index rose 49.94 points, or 0.3 percent, to 15,154.68 at 4 p.m. in Toronto. The benchmark equity gauge is up 0.9 percent in the past three trading days.

     Eight of 10 industries in the S&P/TSX advanced on trading volume 12 percent lower than the 30-day average. Royal Bank of Canada increased 1.4 percent and Bank of Nova Scotia rose 0.9 percent.

     Canaccord gained 4.5 percent as financial-services companies increased 0.8 percent as a group. The industry accounts for about one-third of the index by weighting.

     Monetary policy stimulus is filtering through to the real economy in Europe, said European Central Bank President Mario Draghi, after officials kept interest rates on hold. Growth in 2015 is expected to average 1.5 percent, 1.9 percent in 2016, and 2 percent by 2017, the central bank said.

     Negotiations over Greece’s debt continued as the first of four payments comes due this Friday to the International Monetary Fund. The payments total almost 1.6 billion euros ($1.78 billion) this month. Greek Prime Minister Alexis Tsipras is meeting with European Commission President Jean-Claude Juncker in Brussels this evening to discuss next steps.

     Canada reported the second-biggest merchandise trade deficit ever in April, narrowing from a record in March as exports tumbled for a fourth straight month. The deficit of C$2.97 billion followed a revised March gap of C$3.85 billion.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks advanced, after falling for the third time in four sessions, as banks and insurers rose with Treasury yields and investors speculated Greece will reach a deal with its creditors.

     The Standard & Poor’s 500 Index added 0.2 percent to 2,114.26 at 4 p.m. in New York, and intraday came within 0.5 percent of its all-time closing high set last month.

     “The market is under the assumption that something is going to get done in Greece,” said Robert Pavlik, who helps oversee $9 billion as chief market strategist at Boston Private Wealth in Boston. “When the market holds up, people drive money back into stocks, and we’re still in an upward trajectory. U.S. equities still have upside potential.”

     Investors are speculating that Greece will reach a deal with European leaders and the International Monetary Fund before payment deadlines due this month. Prime Minister Alexis Tsipras will hear details of a final proposal from creditors when he meets European Commission President Jean-Claude Juncker in Brussels on Wednesday.

     Investors are also assessing economic reports for clues on when the Federal Reserve will raise interest rates. The economy expanded in the past two months, even as manufacturers in some regions took a hit from a stronger dollar and a slowdown in energy-related investment, the Fed’s Beige Book report showed today. Economists project the first Fed rate increase will come in September.

     Meanwhile, service industries expanded in May at the slowest pace in 13 months, signaling tempered improvement in the biggest part of the economy. A separate report earlier showed companies added more workers in May than the prior month, a sign job growth is getting back on track after a slow start to the year.

     The government’s employment data is due Friday, and economists predict the economy added 227,000 jobs in May, compared with April’s 223,000, with the unemployment rate remaining at 5.4 percent.

     European Central Bank President Mario Draghi said Wednesday monetary policy stimulus is filtering through to the real economy, as he insisted the ECB needs to see its bond-buying plan through to the central bank’s inflation goal of just below 2 percent. He also said markets must get used to periods of higher volatility, in comments at a press conference in Frankfurt, after officials kept interest rates on hold.

     The S&P 500 hasn’t had back-to-back gains in more than two weeks, though it’s still less than 1 percent below its May record. The index’s annual advance remains among the worst in developed markets amid mixed economic data and as investors cope with the prospect that the Fed will raise rates this year.

 

Have a wonderful evening everyone!

 
Be magnificent!

 

 “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” –Maya Angelou

As ever,

Karen

 “When one door of happiness closes, another opens, but often we look so long at the closed door that we do not see the one that has been opened for us.” –Helen Keller

 

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 Rufous-tailed hummingbird, Amazilia tzacatl, flies while approaching its nest on a tree in San Jose. Juan Carlos Ulate/Reuters

A cow stands in the middle of a busy road as auto-rickshaws pass by in Bengaluru, India.

Market Closes for June 2^nd, 2015

Market Index	Close	Change
Dow Jones	18011.94	-28.43   -0.16%
S&P 500	2109.60	-2.13   -0.10%
NASDAQ	5076.523	-6.405   -0.13%
TSX	15104.74	+30.61
		+0.20%

International Markets

Market Index	Close	Change
NIKKEI	20543.19	-26.68
		-0.13%
HANG SENG	27466.72	-130.44
		-0.47%
SENSEX	27188.38	-660.61
		-2.37%
FTSE 100	6928.27	-25.31
		-0.36%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.710	1.634
CND. 30 Year Bond	2.297	2.231
U.S.    10 Year Bond	2.2624	2.1794
U.S. 30 Year Bond	3.0143	2.9338

Currencies

BOC Close	Today	Previous
Canadian $	0.80600	0.79834
US $	1.24070	1.25261
Euro Rate 1 Euro=		Inverse
Canadian $	1.38369	0.72270
US $	1.11525	0.89666

Commodities

Gold	Close	Previous
London Gold Fix	1192.80	1199.90
Oil	Close	Previous
WTI Crude Future	61.26	60.20

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day as commodities producers advanced and crude gained amid a slump in the dollar.

     Air Canada added 1.3 percent after saying it will cut costs more than previously forecast to increase the airline’s profitability. Sherritt International Corp. surged 6.7 percent as most industrial metals rose. Baytex Energy Corp. and Penn West Petroleum Ltd. advanced at least 3.4 percent as crude prices increased.

     The Standard & Poor’s/TSX Composite Index rose 30.61 points, or 0.2 percent, to 15,104.74 at 4 p.m. in Toronto. The benchmark equity gauge is up 3.2 percent this year.

     First Quantum Minerals Ltd. jumped 5 percent and Teck Resources Ltd. climbed 5.7 percent as raw-materials producers advanced 0.9 percent as a group, the most in the S&P/TSX. Five of 10 industries in the benchmark Canadian equity gauge increased on trading volume 11 percent lower than the 30-day average today.

     Copper rose as the dollar posted the biggest decline since March against a basket of 10 major trading partners, boosting the appeal of raw materials as alternative assets.

     Negotiations over Greece’s debt continued as the first of four payments comes due this Friday to the International Monetary Fund. The payments total almost 1.6 billion euros ($1.78 billion) this month. Greek Prime Minister Alexis Tsipras said his government had submitted a new proposal while officials from the country’s creditors were said to have agreed on what would be a final offer to avoid the country defaulting.

     Air Canada soared 1.3 percent, to the highest level since 2007. Cost savings of 21 percent on each available seat mile are now expected by the end of 2018, higher than the previous target of 15 percent given at the investor day two years ago, Canada’s largest airline said.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks declined, with equities earlier falling to a three-week low, while investors weighed economic data and potential progress in Greece’s debt talks.

     Delta Airlines Inc. dropped 2.6 percent after cutting its forecast on a second-quarter revenue measure. Semiconductors slid as Intel Corp. fell 1.9 percent. Managed-care providers weighed on health-care shares. Energy companies rose along with oil prices, while Freeport-McMoRan Inc. and Alcoa Inc. jumped as the dollar’s biggest slide in more than two months helped boost raw-material companies.

     The Standard & Poor’s 500 Index fell 0.1 percent to 2,109.60 at 4 p.m. in New York, after losing as much as 0.6 percent and bottoming near its average price for the past 50 days. The Dow Jones Industrial Average lost 28.43 points, or less than 0.1 percent, to 18,011.94. The Nasdaq Composite Index slid 0.1 percent.

     The S&P 500 fluctuated Monday between gains and losses before closing higher for the first time in three sessions. The gauge has fallen 1 percent from its May 21 all-time high, trimming its advance in 2015 to 2.5 percent.

     “Yesterday was a microcosm of what we’ve seen for several months now — big intraday swings, only to end up little changed,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts. “The focus is on Friday’s big employment number, and there’s a lot of indecision. If the situation in Greece deteriorates, it leaves a lot of downside potential for the U.S. stock market.”

     European leaders and the head of the International Monetary Fund agreed to step up the intensity of talks over Greece’s fate after a meeting in Berlin on how to prevent the Mediterranean nation defaulting. The Greek government, which said it hasn’t received any draft plan, has submitted its own proposal aimed at breaking the deadlock, according to Prime Minister Alexis Tsipras.

     Greece faces a debt repayment to the IMF on Friday. While the country claims it can make the payment, it’s the smallest of four totaling almost 1.6 billion euros ($1.75 billion) this month.

     Investors also continued to assess economic data for potential clues on on the timing of a Federal Reserve interest- rate increase. Data Monday showed manufacturing expanded more than forecast in May, while consumer purchases unexpectedly stalled in April. In a report today, factory orders slipped more than economists’ forecast.

     Labor market reports on private payrolls growth, jobless claims and the government’s monthly non-farm payrolls data are all due later this week. The economy added 227,000 jobs in May, compared with April’s 223,000, and the unemployment rate will remain at 5.4 percent, economists predict.

     The central bank has indicated that any increase in borrowing costs would be shallow and gradual. Economists forecast the Fed will raise rates in September. Fed Governor Lael Brainard said Tuesday a recent run of weak data casts doubt on the strength of the economy, in a speech that suggested she’s open to a delay in the Fed’s timetable for an interest-rate increase this year.

     The Chicago Board Options Exchange Volatility Index rose 1.9 percent Tuesday to 14.24, after earlier rising as much as 7.7 percent. The gauge, known as the VIX, slipped 4.9 percent in May for its second straight monthly decline. About 5.9 billion shares traded hands on U.S. exchanges, 8.3 percent below the three-month average.

     Five of the S&P 500’s 10 main groups gained, led by raw- material and energy shares. Utilities and health-care fell the most.

     Health-care companies in the benchmark slipped as Vertex Pharmaceuticals Inc., Biogen Inc. and Eli Lilly & Co. declined more than 1.3 percent. Health insurance providers Aetna Inc. and Cigna Corp. slumped at least 1.6 percent.

     Utilities retreated 1.4 percent, the most in a month, as rising U.S. Treasury yields make the group’s high dividend payout less attractive. Xcel Energy Inc. and CMS Energy Corp. fell more than 1.9 percent.

     Semiconductors in the S&P 500 declined for a second session. Intel Corp. fell 1.9 percent a day after agreeing to acquire Altera Corp. for $16.7 billion. The chipmaker has retreated 3.5 percent over the last two days. Avago Technologies Ltd. and Microchip Technology Inc. lost more than 1.6 percent.

     The dollar’s worst drop in more than two months helped lift raw-material shares and companies that earn substantial revenue overseas. A Bloomberg gauge on the U.S. currency fell 1.3 percent. Transocean Ltd. and Diamond Offshore Drilling Inc. added at least 3.7 percent to pace energy’s climb amid oil’s rise. A weaker dollar increases oil’s investment appeal.

     Freeport-McMoRan rallied 5.7 percent, its best gain in seven weeks. Steelmaker Nucor Corp. jumped 3.8 percent, while Alcoa advanced 1.6 percent.

     Boeing Co. climbed 1.4 percent, the best in the Dow, to pace an advance in industrial shares. Kansas City Southern and Caterpillar Inc. rose at least 0.7 percent.

     Apparel maker PVH Corp. jumped 7.1 percent, the biggest in nine months. Quarterly results exceeded analysts’ forecasts, the company boosted its full-year earnings forecast and announced a $500 million three-year stock repurchase program. Ralph Lauren Corp. added 2.9 percent.

     Also among consumer discretionary companies, Priceline Group Inc. rallied 2.5 percent, the most in more than three months, and Dollar General Corp. rose 3 percent, the biggest gain since March 12, after first-quarter profit topped analysts’

estimates, helped by sales of tobacco, candy and health products.

     Zions Bancorp. soared 6.7 percent to the highest level in almost 14 months after a corporate restructuring plan prompted analysts to upgrade its shares. Comerica Inc. and Regions Financial Corp. advanced more than 1.5 percent.

 

Have a wonderful evening everyone!

Be magnificent!

 

“You can never cross the ocean until you have the courage to lose sight of the shore”. –Christopher Columbus

 

As ever,

Karen 

 

“The mind is everything. What you think you become”.  –Buddha

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7