Month: July 2015

Dear Friends,

Tangents:

On this day in 1955, Disneyland opened in Anaheim, California.

Henn-na Hotel, the world’s first hotel entirely staffed by robots, opens in Nagasaki, Japan today!

An assortment of bleeping, flashing and perma-smiling robots greet guests at reception

PHOTOS OF THE DAY

Groundstaff remove water from the 18th green after torrential rain forced play to be suspended during the second round of the British Open golf championship on the Old Course in St. Andrews, Scotland, Friday. Eddie Keogh/Reuters

Kashmiri Muslims walk over a bridge, inspecting the water level near Kullan, northeast of Srinagar, Kashmir, on Friday. Fatal flash floods and cloudbursts in Indian Kashmir caused severe damage on Friday. Dar Yasin/AP

Market Closes for July 17^th, 2015

Market Index	Close	Change
Dow Jones	18086.45	-33.80     -0.19%
S&P 500	2126.61	+2.32     +0.11%
NASDAQ	5210.145	+46.961     +0.91%
TSX	14636.56	-94.52
		-0.64%

International Markets

Market Index	Close	Change
NIKKEI	20650.92	+50.80
		+0.25%
HANG SENG	25415.27	+252.49
		+1.00%
SENSEX	28463.31	+17.19
		+0.06%
FTSE 100	6775.08	-21.37
		-0.31%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.565	1.580
CND. 30 Year Bond	2.240	2.272
U.S.    10 Year Bond	2.3469	2.3540
U.S. 30 Year Bond	3.0820	3.1146

Currencies

BOC Close	Today	Previous
Canadian $	0.77083	0.77172
US $	1.29730	1.29580
Euro Rate 1 Euro=		Inverse
Canadian $	1.40491	0.71179
US $	1.08295	0.92340

Commodities

Gold	Close	Previous
London Gold Fix	1132.80	1144.40
Oil	Close	Previous
WTI Crude Future	50.89	50.91

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, halting the biggest rally since February, as raw-materials producers sank with commodities prices amid a slump in the nation’s currency to a six-year low.

     Barrick Gold Corp., the world’s largest gold producer, plunged to a 24-year low to lead mining companies lower. Raw- materials companies tumbled to a seven-month low. Pacific Rubiales Energy Corp. and Bankers Petroleum Ltd. lost at least 9.4 percent, the most among oil producers as the industry traded near a six-year low.

     The Standard & Poor’s/TSX Composite Index fell 88.24 points, or 0.6 percent, to 14,642.84 at 4 p.m. in Toronto. The benchmark equity gauge had gained 3.2 percent in the past five days.

     “For a lot of the generalists that might’ve gone in, they’re just reversing their trade and thinking now is the time to get out,” said John Kim, a fund manager at Aston Hill Financial in Toronto. His firm manages about C$4 billion. “It’s hard to say what happens next. A lot of it is predicated on sentiment for where commodity prices will be six months down the road.”

     Goldcorp Inc. tumbled 6.1 percent to the lowest close since October 2008 and Barrick Gold sank 5.2 percent to a May 1991 low, as raw-materials producers tumbled 2.8 percent to the lowest level since November. Energy producers lost 1.3 percent. Commodities producers account for about 30 percent of the S&P/TSX.

     Gold prices tumbled 1 percent in New York, the lowest close since April 2010, as a commodity meltdown deepened amid an expanding glut in supplies of assets from gold to oil and wheat.

     Four of 10 industries in the S&P/TSX retreated on trading volume 1.5 percent above the 30-day average today. Grocery stores and industrials shares advanced.

     The Canadian dollar weakened to a six-year low amid speculation the nation’s central bank will cut interest rates again to buttress a weakening economy. The price of crude oil, the nation’s top export, is down 51 percent in the past year.

     Energy stocks have slumped 11 percent this year, the worst- performing industry in the S&P/TSX.

     Suncor Energy Inc. lost 1.9 percent and Encana Corp. fell 2.7 percent. Brent oil capped the longest run of weekly declines since January and West Texas Intermediate crude dropped 3.5 percent for the week.

     The threat of a contracting economy prompted Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year, to 0.5 percent from 0.75 percent on July 15.

US

By Oliver Renick and Annelise Alexander

     (Bloomberg) — It was back to basics for the U.S. stock market, with investors celebrating by giving the Nasdaq Composite Index its best week since October.

     Volatility tumbled as a Greek bailout agreement eased fears that the nation would exit from the euro and a rout in Chinese equities leveled off. As investors turned their attention to earnings, results from Google Inc. and Netflix Inc. helped send the Dow Jones Internet Composite Index soaring the most in 3 1/2 years.

     “It’s the first weekend we’re going into in a while not worrying about some political event overseas,” Anwiti Bahuguna, senior portfolio manager at Columbia Threadneedle Investments, said by phone. “People can go back to focusing on what is very critical for us, which is earnings for U.S. companies and economic data.”

     The Nasdaq Composite jumped 4.3 percent to a record, while the Nasdaq 100 Index surged 5.5 percent to a 15-year high. The Standard & Poor’s 500 Index gained 2.4 percent for its best week since March, while the Dow Jones Industrial Average added 1.8 percent to top 18,000 points.

     As the S&P 500 rallied to within five points of a record, the Chicago Board Options Exchange Volatility Index sank 29 percent, the worst week for the gauge known as the VIX since January 2013.

     The equity gains halted a three-week slump that saw the S&P 500 decline 1.6 percent amid uncertainty over whether Greece’s crisis would spread to other European nations and if China’s equities rout would hurt global growth at the same time the Federal Reserve is weighing higher interest rates.

     While benchmark indexes are climbing back to record levels, the S&P 500’s rebound kept it within a historically tight range. The gauge hasn’t closed in 2015 more than 3.5 percent above or below where it started the year, the first time that’s happened, according to data compiled by Bespoke Investment LLC and Bloomberg. It ended Friday higher by 3.3 percent for the year.

     Overseas, the Stoxx Europe 600 Index advanced 4.3 percent for its best week since January. The Shanghai Composite Index gained for a second week, as part of a 9 percent rebound from July 8 after tumbling 32 percent in a month.

     Technology and financial shares led gains in the U.S., as investors turned to earnings from some of the industries’ largest companies. Analysts project that profit for members of the S&P 500 dropped 5.3 percent in the second quarter, an improvement from a 6.6 percent decline estimated a month ago.

     The Dow Jones Internet Index surged 7.5 percent in the week, led by Google’s 26 percent rally to an all-time high after the search-engine giant reported profit that topped forecasts. Google added $65 billion to its market capitalization Friday for the biggest one-day gain in value ever for a U.S. company, according to data compiled by S&P Dow Jones Indices.

     “The market is really looking for some meat to bite into, and that meat is the earnings,” said Karyn Cavanaugh, a senior market strategist at Voya Investment Management LLC. Voya oversees $215 billion. “The earnings are doing well, the economy is doing better and it takes the focus off the drama going on in Greece and in China.”

     Netflix jumped 18 percent and closed Thursday at a record after the company said growth in international audiences boosted subscriptions to its Internet TV service. The stock has been the best performer in the S&P this year. Facebook Inc., which is slated to report results July 29, added 8 percent to an all-time high.

     Cost reductions boosted results at the nation’s largest lenders, as bank shares in the S&P 500 delivered their best week since February. JPMorgan Chase & Co. added 3.2 percent after tighter expenses helped profit top estimates.

     Bank of America Corp. climbed 8.4 percent to the highest since December as cuts led earnings to more than double, while Citigroup Inc. added 7.7 percent as its chief executive officer tightened the belt.

     Deals also boosted stocks. EBay Inc. rallied 6.3 percent, the most since October, to end at a record after agreeing to sell its enterprise unit for $925 million. Micron Technology Inc. posted its biggest gain since November 2011 after the investment arm of one of China’s top universities announced plans to offer $23 billion for the chipmaker, according to people familiar with the situation.

     Celgene Corp. jumped 13 percent after it agreed to acquire Receptos Inc. for $7.2 billion, contributing to a 6.8 percent rally in the Nasdaq Biotechnology Index that left the gauge at an all-time high.

     Energy shares declined the most among the S&P’s 10 main groups as oil prices retreated. Consol Energy Inc. sank 12 percent in a 10th week of losses, while Transocean Ltd. tumbled 7.8 percent to a 20-year low.

     Earnings have not diverted attention entirely from the timing of the Fed’s next interest-rate move as investors continue to weigh data to gauge the economy’s strength. Reports in the week showed new-home construction climbed in June to the second-highest level since November 2007, while the cost of living rose for the fifth consecutive month.

     Chair Janet Yellen told lawmakers in her semi-annual testimony to Congress that the central bank remains on track to boost borrowing costs this year, while emphasizing that the timing of the first rise is less important than the subsequent path of increases, which she said would be gradual.

 

Have  a wonderful weekend everyone.

 

Be magnificent!

We gain our freedom when we realize our most true nature.

The man who is an artist gains his artistic freedom when he discovers the true ideal of art.

Rabindranath Tagore

As ever,

 

Carolann

 

Manners require time, and nothing is more vulgar than haste.

                                  -Ralph Waldo Emerson, 1803-1882

 

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:

More from our Croatia Travel Director – fitting for the season!

The Commandments of Travel

Thou shalt not expect to find things precisely as they are at home, for thou hast left home to find things different.

Thou shalt not take anything too seriously, for a carefree mind is the basis for a great vacation.

Thou shalt not worry.  The person who worries hath little joy and few things are fatal.

Thou shalt not judge all the people of a country by one person with whom thou has a problem.

Thou shalt in Rome, do somewhat as the Romans do.

Thou shalt carry thy passport (or copy) at all times, for a traveler without a passport is one without a country.

Thou shalt learn to say “Thank You” in any language.  Verily, it si worthe more than gold.

Thou shalt acquaint thyself with any currency and thou shalt not be cheated.

Thou art welcome in every land.  Treat thy hosts with respect and thou shalt be an honored guest.

Thou shalt always be on time.

PHOTOS OF THE DAY

Marylebone Cricket Club members wait in line for the gates to open before the second Ashes Test cricket series match at Lord’s Cricket Ground in London, Thursday. Philip Brown/Reuters

Swiss dancers give a performance titled ‘Let’s Move Together’ at the Gymnaestrada’s Midnight Sun Special at the Olympic stadium in Helsinki, Wednesday. Mikko Stig/Reuters

Market Closes for July 16^th, 2015

Market Index	Close	Change
Dow Jones	18120.25	+70.08     +0.39%
S&P 500	2124.28	+16.88     +0.80%
NASDAQ	5163.184	+64.242   +1.26%
TSX	14727.56	+65.28
		+0.45%

International Markets

Market Index	Close	Change
NIKKEI	20600.12	+136.79
		+0.67%
HANG SENG	25162.78	+107.02
		+0.43%
SENSEX	28446.12	+247.83
		+0.88%
FTSE 100	6796.45	+42.70
		+0.63%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.580	1.592
CND. 30 Year Bond	2.272	2.280
U.S.    10 Year Bond	2.3540	2.3557
U.S. 30 Year Bond	3.1146	3.1409

Currencies

BOC Close	Today	Previous
Canadian $	0.77172	0.77409
US $	1.29580	1.29184
Euro Rate 1 Euro=		Inverse
Canadian $	1.40953	0.70946
US $	1.08776	0.91932

Commodities

Gold	Close	Previous
London Gold Fix	1144.40	1147.40
Oil	Close	Previous
WTI Crude Future	50.91	51.41

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve.  I would like to say to Milton [Friedman]: Regarding the Great Depression, you’re right; we did it.  We’re very sorry.  But thanks to you, we won’t do it again. –Ben Bernanke, Fed Chairman, 2006-2014

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, extending the biggest rally since February to a fifth day, as lenders advanced after the central bank lowered borrowing rates.

     Magna International Inc. dropped 3.5 percent after agreeing to acquire German manufacturer Getrag. Toronto-Dominion Bank and Bank of Nova Scotia added more than 1.1 percent after the Bank of Canada yesterday cut its benchmark lending rate in the face of a slumping economy. Sleep Country Canada Holdings Inc. slumped 5 percent in its trading debut.

     The Standard & Poor’s/TSX Composite Index rose 68.80 points, or 0.5 percent, to 14,731.08 at 4 p.m. in Toronto. The benchmark equity gauge has gained 3.2 percent in five days, the most since February. The rally has pushed the gauge to a 0.7 percent gain this year.

     FirstService Corp. surged 6.7 percent as financial services companies increased 0.8 percent as a group. Eight of 10 industries in the S&P/TSX advanced on trading volume 6.2 percent higher than the 30-day average today.

     The threat of a contracting economy prompted Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year, to 0.5 percent from 0.75 percent yesterday.

     The nation’s largest lenders, including Scotiabank, Royal Bank of Canada and Toronto-Dominion, have lowered their prime rates in response.

     Bombardier Inc. soared 3.7 percent, rebounding from a 1993 low, after the aircraft maker hired Pratt & Whitney Canada executive John Di Bert as its chief financial officer. Industrials climbed 0.4 percent as a group.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks rose, with the Nasdaq Composite Index reaching a record, after Greek lawmakers passed a bailout agreement while companies including Netflix Inc. and Citigroup Inc. rallied on earnings.

     Netflix jumped 18 percent after subscribers surged in the second quarter, beating projections. EBay Inc. climbed 3.4 percent after quarterly sales exceeded estimates and it agreed to sell its enterprise unit for $925 million. Citigroup added 3.8 percent as cost cuts helped the bank’s quarterly profit beat analysts’ estimates. Google Inc. rallied in late trading after its earnings were better than estimated.

     The Nasdaq Composite increased 1.3 percent to 5,163.18 at 4 p.m. in New York, topping its closing record set on June 23. The Standard & Poor’s 500 Index rose 0.8 percent to 2,124.29, 0.3 percent below its record. The Dow Jones Industrial Average gained 70.08 points, or 0.4 percent, to 18,120.25. About 6.2 billion shares traded hands on U.S. exchanges, 3.6 percent below the three-month average.

     “It looks like the equity market likes the Greek settlement,” said Ron Anari, the Jersey City, New Jersey-based senior vice president of trading at ICAP Plc. “At this stage of the game the Federal Reserve is in the driver’s seat, we’re going to see a hike sometime in September, and the equity market understands that. It’s expecting more positive economic news.”

     Greek lawmakers passed reform measures demanded by creditors in exchange for negotiating a third bailout package. Following the vote, European Central Bank President Mario Draghi said today that the central bank raised the level of emergency aid to Greek lenders.                          

     The S&P 500 is on pace for its biggest weekly gain in four months, as it closes in on its May 21 record. The gauge fell as much as 4 percent from that level amid concern the Greek debt crisis and China’s equities rout would hurt global growth as the Federal Reserve considers raising interest rates this year.

     Fed Chair Janet Yellen appeared Thursday before the Senate Banking Committee in Washington, continuing her semi-annual testimony on monetary policy. She told lawmakers that raising rates too late holds risks, along with tightening too quickly.

     Yesterday Yellen signaled the Fed is on track to raise rates this year, while emphasizing that the timing of the first rate rise is less important than the subsequent path of increases, which she said would be gradual.

     Policy makers are watching for further improvement in the labor market. A report today showed filings for U.S. unemployment benefits fell last week for the first time in a month, heading back toward the lowest levels in more than a decade.

     Separate data showed confidence among homebuilders held in July at the highest level since November 2005, indicating the residential real estate market may be picking up speed. Meanwhile, a gauge on manufacturing in the Philadelphia area fell more than estimated by economists surveyed by Bloomberg.

     Earnings season is also drawing more focus as investors sift for clues on the health of the world’s largest economy. S&P 500 companies reporting quarterly results today. Analysts project earnings for members of the S&P 500 dropped 6.4 percent in the second quarter.

     “We’re going to start getting into the thick of earnings this week and with stocks like Netflix responding today, Microsoft and Intel up, you get the sense that betting against the market is a foolish bet,” said Rick Fier, director of equity trading at Conifer Securities LLC in New York.

     With its Thursday 18 percent post-earnings climb, Netflix extended its all-time high, and was the biggest driver of gains in the Nasdaq Composite and S&P 500. The shares are up 137 percent this year, the most in the benchmark index.

     EBay rallied the most since April to a record, helping to lead the technology group to a fifth straight session of gains. The online auction site agreed to sell its enterprise unit to a private-equity group led by Permira and Sterling Partners for $925 million. The unit provides warehousing, delivery and customer support to Web merchants.

     Microsoft Corp. and International Business Machines Corp. each rose at least 1.4 percent, leading the Dow, with both stocks headed toward their strongest weekly gains in three months.

     Google increased 9.9 percent as of 5:01 p.m. as the search engine giant’s second-quarter profit topped analysts’ estimates amid slower spending. Google soared 3.1 percent in regular trading to the highest since September, with the gain almost doubling in the final 15 minutes of trading before the earnings release.

     The Chicago Board Options Exchange Volatility Index fell 8.5 percent Thursday to 12.11, marking its biggest five-day decline ever.

     Nine of the S&P 500’s 10 main groups gained, with utility, phone and technology companies rising the most. Banks in the benchmark extended a rally to a sixth day, the longest winning streak since Dec. 2013. Citigroup rose to a more than six-year high after its quarterly results. M&T Bank Corp. climbed 2.2 percent to a record after its second-quarter profit exceeded estimates.

     Charles Schwab Corp. advanced 3.3 percent to its highest since Nov. 2000 after reporting second-quarter profit in line with analysts’ estimates, while revenue beat forecasts. E*Trade Financial Corp. surged 2.9 percent.

     Philip Morris International Inc. added 3.2 percent, the most in three months, to pace a rise in consumer staples. The world’s largest publicly traded tobacco company posted quarterly profit that topped estimates. Altria Group Inc. gained 3.3 percent to a four-month high, and Reynolds American Inc. rose 1.8 percent to a record.                          

     Automakers and parts suppliers retreated after Barclays Plc cut them to negative from neutral as China car sales continue to disappoint. General Motors Co. fell 2.6 percent to its lowest since October, while parts makers Delphi Automotive Plc and BorgWarner Inc. dropped at least 3.7 percent.

     Sherwin-Williams Co. fell 7.4 percent, the most in two years. The paint maker cut its full-year earnings forecast, citing the effects of a stronger dollar. Rival PPG Industries Inc. slid 4.4 percent after also citing currency headwinds in its earnings report.

     Garmin Ltd. lost 7.1 percent after the navigation device company’s preliminary second-quarter and full-year profit views were below analysts’ estimates. Shares fell to the lowest since Sept. 2013.

 

Have a wonderful evening everyone.

 

Be magnificent!
 

Do not believe a thing simply because it has been said.

Do not put your faith in traditions only because they have been honored by many generations.

Do not believe a thing because the general opinion believes it to be true or because it has been said repeatedly.

Do not believe a thing because of the single witness of one of the sages of antiquity.

Do not believe a thing because the probabilities are in its favor,

or because you are in the habit of believing it to be true.

Do not believe in that which comes to your imagination,

thinking that it must be the revelation of a superior Being.

Believe nothing that binds you to the sole authority of your masters or priests.

That which you have tried yourself, which you have experienced, which you have recognized as true,

and which will be beneficial to you and to others;

believe that, and shape your conduct to it.

Buddha

As ever,

 

Carolann

 

I know of nothing sublime which is not some modification of power.

                                                    -Edmund Burke, 1729-1797

 

 

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:

So many of us travelling this time of year for summer vacation, summer holidays.  I opened a keepsake given to us by the Travel Director on our recent trip to Croatia & Slovenia.  It is a wise message to pass on:

LET’S BE CONSIDERATE!
PROTECT OUR WORLD!

 
USE NOTHING BUT    “ENERGY” !

 
WASTE NOTHING BUT   “TIME” !

 
TAKE NOTHING BUT   “PHOTOS’!

 
LEAVE NOTHING BUT   “FOOT PRINTS”!

 
THE MOST PRECIOUS GIFT WE CAN GIVE TO FUTURE GENERATIONS!

 
BIRTHDAY: Rembrandt, July 15, 1606

Rembrandt was born in Leiden, the Netherlands, on July 15, 1606 – his full name was Rembrandt Harmenszoon van Rijn.  He was the son of a miller.  Despite the fact that he came from modest means, he was able to study art and , by age 22, took his first pupils.  He married Saskia van Ulyenburgh, the cousin of a successful art dealer, in 1634.

Rembrandt’s family life was marked by misfortune.  Between 1635 and 1641 Saskia gave birth to four children, but only the last, Titus, survived.  Saskia died in 1642, at the age of 30.  Hendrickje Stoffels, who became Rembrandt’s housekeeper in 1649, eventually became his wife and was the model for many of his pictures.  Despite Rembrandt’s success as an artist, teacher, and art dealer, his flamboyant living forced him to declare bankruptcy in 1656.  His beloved Hendrickje died in 1663, and his son Titus, in 1668 at only 27 years of age.  Eleven months later, on October4, 1669, Rembrandt died in Amsterdam.

If any of you are travelling to Amsterdam this summer, make sure to stop by Rembrandt’s studio which was made into a very interesting museum.  It’s a highlight in a city of many treasures, and I recommend it to gain an interesting perspective on this giant of a man and the art world.

PHOTOS OF THE DAY

Hindu priests hold traditional oil lamps as they perform evening prayers called ‘Aarti’ on the banks of the river Godavari during the Maha Pushkaralu, a Hindu festival, at Rajahmundry in Andhra Pradesh, India, Wednesday. The religious festival is held once every 144 years. R Narendra/Reuters

Revelers hold up red scarves and candles during the closing ceremony of the San Fermin festival in Pamplona, northern Spain, early Wednesday morning. Thousands of people gathered in front of the city’s town hall to sing the traditional farewell song ‘Pobre de mi’ (‘poor me’). The song is sung by revelers to show their sadness for the end of the festival. Susana Vera/Reuters

Market Closes for July 15^th, 2015

Market Index	Close	Change
Dow Jones	18050.17	-3.41     -0.02%
S&P 500	2107.40	-1.55     -0.07%
NASDAQ	5098.941	-5.949     -0.12%
TSX	14662.28	+62.88
		+0.43%

International Markets

Market Index	Close	Change
NIKKEI	20463.33	+78.00
		+0.38%
HANG SENG	25055.76	-65.15
		-0.26%
SENSEX	28198.29	+265.39
		+0.95%
FTSE 100	6753.75	—
		—

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.592	1.647
CND. 30 Year Bond	2.280	2.320
U.S.    10 Year Bond	2.3557	2.3974
U.S. 30 Year Bond	3.1409	3.1916

Currencies

BOC Close	Today	Previous
Canadian $	0.77409	0.78526
US $	1.29184	1.27346
Euro Rate 1 Euro=		Inverse
Canadian $	1.41428	0.70707
US $	1.09475	0.91345

Commodities

Gold	Close	Previous
London Gold Fix	1147.40	1157.40
Oil	Close	Previous
WTI Crude Future	51.41	53.04

If you torture the data long enough, it will confess to anything.
                    -Darrell Huff, 1913-2001 (How to Lie with Statistics, 1954).

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a fourth day, extending the biggest rally since February, after the Bank of Canada cut its benchmark interest rate for a second time this year due to the impact of slumping oil on the economy.

     Canadian National Railway Co. and Canadian Pacific Railway Ltd. increased more than 1.4 percent to lead industrials stocks higher. Corus Entertainment Inc. tumbled 9 percent after reporting third-quarter earnings and revenue short of analysts’ estimates.

     The Standard & Poor’s/TSX Composite Index rose 62.88 points, or 0.4 percent, to 14,662.28 at 4 p.m. in Toronto. The benchmark equity gauge has gained 2.7 percent in four days, the most since February. The rally has pushed the gauge to a 0.2 percent gain this year.

     “This is going to give a nice boost to stocks,” said Geoffrey Pazzanese, a global equity fund manager at Federated Investors Inc. on the phone from New York. His firm manages $355.8 billion in assets, and exited Canada completely in February. “It will help the domestic economy, the currency might help operationally if you’re selling in U.S. dollars.”

     Canadian Pacific Railway rose 1.4 percent and Canadian National Railway added 2.6 percent as industrials stocks rallied 1.2 percent as a group. Eight of 10 industries increased on trading volume in line with the 30-day average today.

     Alimentation Couche-Tard Inc. climbed 4 percent, extending a record, to lead a 2 percent increase in consumer-staples stocks.

     The threat of a contracting economy prompted Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year, to 0.5 percent from 0.75 percent.

     The Canadian economy probably “contracted modestly” in the first half, policy makers said, without calling it a recession, which is typically defined as two straight quarters of negative growth.

     Royal Bank of Canada rose 0.5 percent while Canadian Western Bank dropped 3.3 percent. Toronto-Dominion Bank, the second-largest lender, rose 1.1 percent. The lender cut its prime lending rate 10 basis points to 2.75 percent in response to the central bank’s decision.

US

By Jeremy Herron

     (Bloomberg) — U.S. stocks snapped the longest rally since January as Greek lawmakers debated a new bailout package amid protests outside parliament. Treasuries rose as the Federal Reserve indicated interest rates won’t be increased rapidly this year, and Canada’s dollar led commodity currencies lower.

     The Standard & Poor’s 500 Index was down 0.1 percent by 4 p.m. in New York after trading little changed for most of Wednesday following a 3 percent rally the past four days. Yields on 10-year Treasury notes fell five basis points to 2.35 percent. The loonie tumbled to its weakest level since 2009 after the Bank of Canada cut benchmark rates, fueling a selloff in currencies from New Zealand to South Africa. Crude oil slid.

     Riot police fired tear gas to disperse crowds gathered across the road from the Greek parliament, where lawmakers are weighing the austerity measures demanded in return for fresh aid. Fed Chair Janet Yellen reiterated in her congressional testimony that the bank remains on track to raise rates this year, though the pace of any increases will be gradual.

     “A rate hike has been baked into prices for some time already,” Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird & Co., which oversees $110 billion, said by phone. “She has to consider what’s going on with the turmoil in Europe, and deflationary pressures are still formidable. Going forward, earnings will be important.”

     The Bloomberg Commodity Index lost 0.9 percent Wednesday, as a strengthening dollar damped demand for assets from precious metals to oil. West Texas Intermediate crude sank 3.1 percent to $51.41 a barrel after an increase in oil inventories at the Cushing, Oklahoma hub.                     
     
     The loonie slid 1.5 percent after Canada cut rates for the second time this year, a move of support for the economy which is laboring under the retreat in commodities. The Aussie slumped 1 percent, while the South African rand was down 0.8 percent. A drop in milk powder prices at a fortnightly dairy auction hit the kiwi, with the currency extending losses at its weakest level since 2010 before inflation data Thursday.

     The S&P 500 had been rallying along with global stocks after Greece’s prime minister agreed to the bailout deal and China appeared to stabilize its stock-market rout. The Shanghai Composite Index fell 3 percent Wednesday in a second day of losses, reinvigorating concerns after better-than-expected economic growth data failed to boost investor confidence.

     U.S. equities traded moderately higher earlier in the session as results from Bank of America Corp. and U.S. Bancorp boosted financial shares. Celgene Corp. jumped 7 percent after raising its profit forecast and agreeing to acquire Receptos Inc. for $7.2 billion. Energy shares led declines amid oil’s drop.

     Netflix Inc. surged about 10 percent in extended trading after the company said growth in international audiences boosted subscriptions to its Internet TV service. Netflix has been the best performer in the S&P 500 this year. Intel Corp. added 3.2 percent as the biggest maker of semiconductors predicted third- quarter sales that may exceed analysts’ predictions.

     The S&P 500 turned negative in afternoon trading after footage of the Greek protests emerged. The demonstrations show the challenge faced by Prime Minister Alexis Tsipras in convincing a country whose economy has shrunk by a quarter in the last five years to accept further spending cuts.

     “If you take how far we’ve come in the last three days, throw a riot on TV and toss in the fact that it appears that Greek parliament is still debating this package — that’s enough to hit the market late in the afternoon on a quiet day,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee.

     Equities investors largely ignored Yellen’s testimony, as it tracked closely with comments she made July 10, while bond traders jumped on to her reiteration that rate increases this year will be gradual.

     Fed funds futures showed a 37 percent chance the central bank will boost its benchmark rate in September, up from 31 percent on Tuesday. Futures are pricing in 70 percent chance of a hike by December, up from 66 percent, according to data compiled by Bloomberg.

     “The market in the last two months has begun to embrace the view that the pace will matter more than the liftoff,” said George Goncalves, the head of interest-rate strategy at Nomura Holdings Inc., one of the 22 primary dealers that trade directly with the Fed. “Earlier in the year, the market wasn’t buying into the concept.”                        

     The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, climbed 0.5 percent, with the dollar adding 0.5 percent to $1.0950 per euro.

     Stocks in Europe advanced for a sixth day as gains in mining shares pushed the Stoxx Europe 600 Index to its longest winning streak since February.

     Gold futures capped a fifth straight decline, with contracts for August delivery down 0.5 percent to $1,147.40 an ounce. The metal has lost 3.1 percent this year and is trading near a three-month low. Zinc climbed to a one-month high amid signs of tighter global supplies and faster-than-expected economic growth in China, the world’s biggest user.

 

Have a wonderful evening everyone.

 

Be magnificent!

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

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

Such a state of attention is total energy;

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

Krishnamurti

As ever,

 

Carolann

 

Traveling makes a man wiser, but less happy.

                    -Thomas Jefferson1743-1826

 

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: 

Found this in The New Yorker today….thought it might interest you!

FIT BODIES, FIT BRAINS

It seems everyone’s got a favorite workout these days, but this fitness regime isn’t about building six-pack abs or killer quads. It’s about your brain.

Fit Brains is the free, online, mobile-friendly brain training app from Rosetta Stone, the people who redefined language learning. The idea is to game your way to greater strength in cognitive areas like memory, logic, speed, focus, and of course, language.

In practice, Fit Brains games are fun, challenging, and a little addictive—the more you advance, the further you want to go. Competitive types (you know who you are) will appreciate the ability to compare your performance with other Fit Brains users in your age group and gender. With more than 60 games to choose from so far, you and your brain will never run short of new challenges.

So, does it really work? The science is solid. Fit Brains has been developed under the supervision of Dr. Paul Nussbaum, a neuropsychologist and leader in the field of Brain Health. And Fit Brains users report improved memory, enhanced focus, and a whole lot of fun thanks to the program.

Fit Brains is online and mobile, so you can treat your brain to a good workout practically anywhere (while on the treadmill at the gym, even)—and on whatever device works for you.

Of course, if you’re a regular reader, your brain may be fitter than most already. It’s easy enough to find out—just go to FitBrains.com to start playing.

Today is Bastille Day in France.

PHOTOS OF THE DAY

Alphajets from the French Air Force Patrouille de France fly over the pyramid of the Louvre in the formation of a Croix de Lorraine, releasing trails of red, white, and blue during the traditional Bastille Day military parade in Paris, Tuesday. Bastille Day, also known as the 14th of July, is the national holiday of France, commemorating the beginning of the revolution that overthrew the king Louis XVI in 1789. Gonzalo Fuentes/Reuters

Solar powered lights are pictured along Hoernli Ridge on the Matterhorn in Zermatt, Switzerland, Tuesday. Zermatt celebrates the first ascent of the Matterhorn, made along the Hoernli Ridge by Briton Edward Whymper on July 14, 1865, with six other roped team members. All mountaineering activities will be halted on July 14 on the Swiss and Italian side of the Alpine summit in remembrance of the more than 500 people who have perished attempting to reach the top. Denis Balibouse/Reuters

Market Closes for July 14^th, 2015

Market Index	Close	Change
Dow Jones	18053.58	+75.90     +0.42%
S&P 500	2108.95	+9.35     +0.45%
NASDAQ	5104.891	+33.379     +0.66%
TSX	14599.40	+66.18
		+0.46%

International Markets

Market Index	Close	Change
NIKKEI	20385.33	+295.56
		+1.47%
HANG SENG	25120.91	-103.10
		-0.41%
SENSEX	27932.90	-28.29
		-0.10%
FTSE 100	6753.75	+15.80
		+0.23%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.647	1.680
CND. 30 Year Bond	2.320	2.342
U.S.    10 Year Bond	2.3974	2.4373
U.S. 30 Year Bond	3.1916	3.2159

Currencies

BOC Close	Today	Previous
Canadian $	0.78526	0.78534
US $	1.27346	1.27334
Euro Rate 1 Euro=		Inverse
Canadian $	1.40177	0.71338
US $	1.10075	0.90847

Commodities

Gold	Close	Previous
London Gold Fix	1157.40	1154.00
Oil	Close	Previous
WTI Crude Future	53.04	52.20

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks extended the biggest rally since February, as energy shares rebounded from the worst week in six months and materials producers jumped before the Bank of Canada meets to determine interest-rate policy.

     Bankers Petroleum Ltd. and Penn West Petroleum Ltd. surged at least 8.4 percent to pace an advance in oil companies. Potash Corp. of Saskatchewan Inc. added 1.2 percent for a third straight day of gains. Fairfax Financial Holdings Ltd. added 2.8 percent after one of its units offered to buy a position in an Indian brokerage for $255 million.

     Even with the recent rebound, energy producers are the worst performers this year among 10 groups in the benchmark for Canadian equities, as a rout in oil prices has weakened domestic producers. The slide is spreading to a manufacturing sector already struggling to capitalize on a rebound in U.S. growth and a weaker currency, adding to concerns Canada may have slipped into recession as the central bank meets Wednesday.

     The Standard & Poor’s/TSX Composite Index rose 66.18 points, or 0.5 percent, to 14,599.40 at 4 p.m. in Toronto. The benchmark equity gauge has gained 2.3 percent in the past three days, the most since February. The rally has trimmed its decline in 2015 to 0.2 percent, one of the worst performances among 24 developed markets tracked by Bloomberg.

     The threat of a contracting economy may prompt Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year. Sixteen of the 29 economists surveyed by Bloomberg said the benchmark rate will be reduced by a quarter point to 0.5 percent.

     The BOC will announce the rate decision at 10 a.m. in Ottawa.                     

     The recent run in Canada’s stock market comes as Toronto- Dominion Bank, Bank of America Merrill Lynch, BNP Paribas SA and Citigroup Inc. all have said Canada probably fell into recession in the first half of 2015.

     All 10 industries in the S&P/TSX rose on trading volume in line with the 30-day average today.

     Energy shares jumped 1.2 percent for a second day of gains. The group plunged 3.9 percent last week, the most since January. Suncor Energy Inc. jumped 1.9 percent and Encana Corp. rose 4.3 percent.

     West Texas Intermediate crude for August delivery added 1.6 percent to $53.04 a barrel in New York, erasing an earlier loss. Iran agreed to curb its nuclear program in return for the removal of sanctions on its exports including crude in a historic accord with world powers. Restrictions on Iran will remain in place at least until United Nations monitors report on the country’s compliance with the deal in December.

US

By Oliver Renick and Annelise Alexander

     (Bloomberg) — U.S. stocks posted their first four-day winning streak since January, as semiconductor and biotechnology shares rallied while weaker-than-expected retail sales spurred speculation on timing for higher interest rates.

     Micron Technology Inc. jumped 11 percent, leading chipmakers higher, amid talk of a buyout. The Nasdaq Biotechnology Index increased 2.3 percent to a record. Apache Corp. and Chesapeake Energy Corp. rose more than 2.1 percent as oil gained. JPMorgan Chase & Co. advanced 1.4 percent after its quarterly profit beat analysts’ estimates as expenses fell.

     The Standard & Poor’s 500 Index rose 0.5 percent to 2,108.95 at 4 p.m. in New York, and closed at a three-week high. The Dow Jones Industrial Average added 75.90 points, or 0.4 percent, to 18,053.58, while the Nasdaq Composite Index climbed 0.7 percent. About 5.7 billion shares traded hands on U.S. exchanges Tuesday, 12 percent below the three-month average.

     “I was a little disappointed with the retail sales numbers today, so I was a little surprised by the rally,” said Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC. “Maybe the drumbeat of the September rate rise is something that may get pushed back to later in the year. Going forward it’s going to take earnings to push us higher. JPMorgan started the week of earnings off pretty well.”

     A report today showed consumer purchases decreased 0.3 percent in June after a 1 percent advance in May that was smaller than previously reported, curbing optimism about the strength of the rebound in spending during the second quarter.

     Greece’s financial crisis and turmoil in China’s equity market had recently diverted attention from corporate profits, U.S. economic data and the path of the Fed’s monetary policy.

     The S&P 500 last week fell as much as 4 percent from its all-time high, and has since recovered to trade within 1 percent of its record set in May as the Greek crisis neared a resolution and China shares stabilized. The benchmark gauge and the Dow are up 3 percent over four sessions, while the Nasdaq Composite has added 4 percent.

     Fed Chair Janet Yellen appears before Congress tomorrow for her semi-annual monetary policy testimony. Officials in June forecast the central bank would raise rates twice this year, signaling that September is the most likely month for liftoff. Policy makers have indicated a desire to see more evidence of labor-market improvement, particularly in wage gains, before raising rates.

     Other data releases this week that may provide clues on the pace of any rate increase include industrial production, housing starts and consumer sentiment.

     “With China and Greece hopefully in the rear-view mirror, we’re focused on domestic things, with Yellen’s testimony tomorrow and a retail sales number that hasn’t been increasing in the face of lower oil prices,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts.                      

     Quarterly earnings will also move more into focus as concerns about Greece wane. Goldman Sachs Group Inc., Intel Corp. and Google Inc. are among S&P 500 firms posting results this week. Analysts project earnings for companies on the equity benchmark dropped 6.4 percent in the second quarter.

     The Chicago Board Options Exchange Volatility Index fell 3.8 percent Tuesday to 13.37. The gauge, known as the VIX, had its biggest three-day drop since October. Nine of the S&P 500’s 10 main groups rose.

     Health-care companies advanced amid a rally in biotechnology. Biogen Inc. added 2.3 percent after Bank of America Merrill Lynch raised the stock to buy from neutral, while Gilead Sciences Inc. increased 2.5 percent. The Nasdaq Biotech Index rose for the ninth time in 10 sessions, up 2.3 percent today to an all-time high.

     Energy shares gained as West Texas Intermediate crude rose, after erasing early losses on speculation that the return of sanctioned Iranian oil will be gradual following an historic accord with world powers on the country’s nuclear program. Southwestern Energy Co. and Halliburton Co. rose more than 1.6 percent, while Chevron Corp. added 1 percent.

     Micron’s biggest gain in more than three years helped chipmakers in the benchmark index rise for a third session, their strongest such stretch in six weeks. The investment arm of one of China’s top universities is planning to offer $23 billion for Micron, a person familiar with the matter said. SanDisk Corp. jumped 3.4 percent, while Qorvo Inc. and Avago Technologies Ltd. increased more than 1.7 percent.

     Google Inc. advanced 2.2 percent in its strongest four- session stretch since Oct. 2013. The search giant’s shares hit a nine-month high as it steps up efforts against Apple Inc. with smartphone location tracking tools.

     Banks in the S&P 500 gained for a fourth day, their longest winning streak in three months. Wells Fargo & Co. added 0.9 percent after its quarterly earnings matched analysts’ estimates. Citigroup Inc. and Bank of America Corp. climbed at least 0.6 percent.

     Coca-Cola Co. rose 1.3 percent to a seven-week high after UBS AG upgraded the shares to buy from neutral. The firm sees the stock poised for gains in part as Coke benefits from higher prices.

     Spirit Airlines Inc. fell 7.4 percent to its lowest since October after the budget airline cut its forecast for operating margins for the rest of the year as pricing pressure from other carriers weighs on revenue. A Bloomberg index of U.S. airlines lost 0.3 percent.

     Johnson & Johnson slid 0.5 percent, halting three straight winning sessions, as its earnings exceeded analysts forecasts while revenue was in line with estimates.

     Navient Corp. sank 11 percent, the biggest drop in the S&P 500 Tuesday, after the student-loan servicer cut its outlook. Shares fell the most since the company was split from SLM Corp.in 2014.
 

Have a wonderful evening everyone.

 

Be magnificent!

Adaptability is not imitation.

It means power of resistance and assimilation.

Mahatma Gandhi

As ever,

 

Carolann

 

In the absence of clearly-defined goals, we become strangely loyal to performing daily trivia until ultimately we become enslaved by it.

                                                                                                                                                    -Robert Heinlein, 1907-1988

 

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:

I read an article in a recent magazine entitled “Why we need a summer read.”

John Yemma writes: “Are there any more natural companions than summer vacation and summer reading?  Summer vacation is about breaking away from the routine, ignoring the clock, letting a breeze or a wave, a trail or a highway take you somewhere unexpected.  Summer reading works the same way.  Instead of  a work-year’s consumption of articles, books, PDFs, and  7,000 other types of must-read, must-improve, must-survive documents consumed during the work year, summer reading is about willingly giving yourself over to an author to guide you into an unexpected world.  People read for pleasure year-round, but for most of us slow immersion in  a book is possible only when we are free from other obligations.  Slow immersion is what summer vacation and summer reading are all about…No work of literature – and the bar is very high in  a world of Faulkner, Flannery O’Connor, Ralph Ellison, Carson McCullers, Alice Walker, Robert Penn Warren, Truman Capote, Cormac McCarthey, and many more captures the soul of the South as Harper Lee’s masterpiece, ‘To Kill a Mockingbird’ (which is why there is so much anticipation surrounding her new title, ‘Go Set a Watchman’)…A summer read isn’t required reading .  It is necessary reading.  As Atticus told Scout: ‘You never really understand a person until you consider things from his point of view…until you climb into his skin and walk around in it.”

Having just returned from a week of sailing, I had lots of time to read a couple of terrific books.  One that I can recommend is H is for Hawk by Helen Macdonald published this past year.  It is a memoir of coming to terms with the death of her father.

PHOTOS OF THE DAY

Women and girls wear traditional dresses during the annual Mitama Festival at the Yasukuni Shrine in Tokyo, Monday. Over 30,000 lanterns light up the precincts of the shrine, where more than 2.4 million war dead are enshrined, during the four-day festival that lasts from July 13 to 16. Thomas Peter/Reuters

A drummer performs amongst the shadows of models at the Cadet presentation during Men’s Fashion Week in New York, Monday. The four-day event by the Council of Fashion Designers of America is the New York debut of Men’s Fashion Week. Lucas Jackson/Reuters

Market Closes for July 13^th, 2015

Market Index	Close	Change
Dow Jones	17977.68	+217.27     +1.22%
S&P 500	2099.89	+23.27     +1.12%
NASDAQ	5071.512	+73.816     +1.48%
TSX	14528.33	+117.26
		+0.81%

International Markets

Market Index	Close	Change
NIKKEI	20089.77	+309.94
		+1.57%
HANG SENG	25224.01	+322.73
		+1.30%
SENSEX	27961.19	+299.79
		+1.08%
FTSE 100	6737.95	+64.57
		+0.97%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.680	1.685
CND. 30 Year Bond	2.342	2.339
U.S.    10 Year Bond	2.4373	2.3972
U.S. 30 Year Bond	3.2159	3.1899

Currencies

BOC Close	Today	Previous
Canadian $	0.78534	0.78980
US $	1.27334	1.26615
Euro Rate 1 Euro=		Inverse
Canadian $	1.40167	0.71343
US $	1.10082	0.90841

Commodities

Gold	Close	Previous
London Gold Fix	1154.00	1159.30
Oil	Close	Previous
WTI Crude Future	52.20	52.74

Market Commentary:

Canada

By Annelise Alexander

     (Bloomberg) — Canadian stocks capped the biggest two-day rally since February, as global equities rallied amid optimism that Greece clinched a deal with its creditors and will remain in the euro.

     Consumer shares paced gains in Canada’s benchmark stock gauge as all 10 main groups advanced. Northern Property Real Estate Investment Trust jumped 2.8 percent as REITs surged. New Gold Inc. and Teck Resources Ltd. jumped at least 7.6 percent for the biggest gains in the index as materials producers erased earlier losses.

     The Standard & Poor’s/TSX Composite Index jumped 122.15 points, or 0.9 percent, to 14,533.22 at 4 p.m. in Toronto. The benchmark equity has added 1.8 percent in the past two days, the most since Feb. 3, to trim its loss in 2015 to 0.7 percent.

     The S&P 500 rallied 1.1 percent, while the Stoxx Europe 600 Index capped its biggest four-day rally since 2011 after Greece reached a deal with creditors. The nation’s parliament will convene on Wednesday to vote on a bailout package that includes a bank recapitalization, potentially giving the ECB room to ease its liquidity restraints.

     All of the S&P/TSX’s 10 industry groups advanced on trading volume in line with the 30-day average.

     Health-care companies rose 1.5 percent. Concordia Healthcare Corp. jumped 3.7 percent, the highest close since April, after Cantor Fitzgerald LP upgraded the stock to buy.

     Home Capital Group Inc. fell 19 percent, the most since 1996, after preliminary second quarter results missed estimates.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index posting its best three-day rally this year, after Greece reached an agreement with its creditors.

     Technology and consumer shares rose the most, with Google Inc., Microsoft Corp. and Facebook Inc. up at least 2 percent. Netflix Inc. and Amazon.com Inc. surged more than 2.7 percent. MarkWest Energy Partners LP jumped 14 percent as the pipeline unit of refiner Marathon Petroleum Corp. plans to buy MarkWest, the second-biggest U.S. processor of natural gas, for about $15.8 billion. Marathon rose 7.9 percent to a record.

     The S&P 500 added 1.1 percent to 2,099.60 at 4 p.m. in New York, closing near its average price during the past 50 days after the gauge earlier jumped above its 100-day moving average for the first time this month. Dow Jones Industrial Average climbed 217.27 points, or 1.2 percent, to 17,977.68. The Nasdaq Composite Index rose 1.5 percent after its biggest gain since January.

     “It’s great hearing Greece is not going over the deep end,” said Rob Lutts, chief investment officer at Salem, Massachusetts-based Cabot Wealth Management Inc. “What’s good for the rest of the world for now is Greece staying as is and instituting these reforms. Last week’s volatility was all on the back of what’s going on in Greece, as well as in China, and today it’s pretty apparent the path is one of resolution.”

     Greek Prime Minister Alexis Tsipras surrendered to European demands for immediate action to qualify for up to 86 billion euros ($95 billion) of aid he needs to keep his country in the euro area. The Greek parliament has until Wednesday to pass into law key creditor demands including streamlining value-added taxes, broadening the tax base to increase revenue and curbing pension costs.                       

     The S&P 500 ended little changed last week, masking a volatile period accentuated by Greece’s financial crisis and turmoil in China’s equity market. Equities rallied 1.2 percent Friday, the best showing since May 8, recovering on optimism toward a deal between Greece and its creditors, and as stocks in China rebounded. The U.S. benchmark index is 1.5 percent below its record set in May.

     Investors will continue to weigh U.S. economic data this week for clues on when the Federal Reserve may raise interest rates. Reports will include data on retail sales, industrial production, housing starts and consumer sentiment.

     Fed Chair Janet Yellen said Friday she still expects to raise interest rates this year and repeated that the subsequent pace of increases will be gradual. She will deliver her semiannual testimony to Congress on Wednesday and Thursday.

     Corporate profits will also be in focus, with JPMorgan Chase & Co., Wells Fargo & Co. and Intel Corp. among S&P 500 firms reporting results this week. Analysts project earnings for companies in the equity benchmark dropped 6.4 percent in the second-quarter.                         

     The Chicago Board Options Exchange Volatility Index fell 17 percent Monday to 13.90. With Friday’s 16 percent decline, the gauge known as the VIX marked its biggest two-session slide since Jan. 2013. About 6 billion shares traded hands on U.S. exchanges today, 6.5 percent below the three-month average.

     All of the S&P 500’s 10 main groups rallied, with technology shares posting the strongest two-day gain this year, while consumer-discretionary companies had their biggest two-day move in five months.

     An index of 30 retailers in the S&P 500 climbed to an all- time high, bolstered by Netflix and Amazon as both reached records. Home Depot Inc. advanced 1.6 percent to a three-month high, while Priceline Group Inc. increased 2.5 percent. Under Armour Inc. jumped 3.6 percent and Nike Inc. added 1.7 percent as both stocks closed at records.

     Apple Inc. climbed 1.9 percent, while Google and Yahoo! Inc. rallied at least 2.2 percent to help pace technology’s rise. International Business Machines Corp. added 1.5 percent and had its best three-day increase in 2015.

     Applied Materials Inc. gained 2.9 percent, the most since February. David Einhorn said in an investor letter that his Greenlight Capital took a position in the semiconductor equipment manufacturer.

     Banks in the benchmark index rose for a third day, their best such streak this year. Treasury yields also advanced for a third session, and investors speculated that higher interest rates will help boost lenders’ profits. Bank of America Corp. and Citigroup Inc. gained at least 1.8 percent.

     Anacor Pharmaceuticals Inc. soared 56 percent to a record after the company said its experimental dermatitis drug helped patients in a final-stage trial.

     Edwards Lifesciences Corp added 3.4 percent, the most in four months, to reach an all-time high after the company was raised to outperform from sector perform at RBC Capital Markets by equity analyst Glenn Novarro.

     Airline stocks rose for the fifth time in six sessions, as American Airlines Group Inc. and SkyWest Inc. jumped at least 2.8 percent. Jet fuel prices fell 37 percent from a year earlier in the second quarter and are poised to boost margins, according to Bloomberg Intelligence.

     The Global X FTSE Greece 20 exchange-traded fund, a U.S.- listed ETF tracking Greek equities, slid 4.4 percent, reversing an earlier rise of 5.3 percent.

     Managed-care companies extended a slump from recent highs last month. Cigna Corp., Anthem Inc. and Humana Inc. all declined at least 1.1 percent. Aetna Inc. slipped 0.5 percent, and is down about 14 percent since reaching a record on June 25.

Reuters reported late Friday that at least three state attorneys general said they plan to examine Aetna’s proposed merger with Humana.

     Ascena Retail Group Inc. fell 13 percent, the most in more than nine months, after cutting its profit forecast for the year because of slower-than-expected sales at its Justice and Dressbarn stores.
 

Have a wonderful evening everyone.

 

Be magnificent!

To expect something is to look for something pleasant.

Searching for the pleasurable is a form of denial.

You cannot expect anything, because the expectation is within you,

and what you are waiting for is dependent on external forces.

Swami Prajnanpad

As ever,

 

Carolann

 

Most powerful is he who has himself in his own power.

                                  -Seneca, 3 BCE-65 AD

 

 

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 DAYAn Indian couple splashes water as it rains in New Delhi, Friday. India’s monsoon season, which runs from June to September, brings rains that are vital to agriculture. Altaf Qadri/AP

A Syrian refugee child, who has been living in Jordan with his family for two-and-a-half years after they fled violence in their Syrian hometown of Idlib, poses in his family’s tent at an informal settlement in Madaba city, near Amman, Jordan, Thursday. The number of Syrian refugees in neighboring countries has surpassed 4 million, the UN refugee agency said, adding that the total was on course to reach 4.27 million by the end of 2015.Muhammad Hamed/Reuters

Market Closes for July 7, 2015

Market Index	Close	Change
Dow Jones	17760.41	+211.79   +1.21%
S&P 500	2076.62	+25.31   +1.23%
NASDAQ	4997.696	+75.298
		+1.53%
TSX	14411.07	+132.58
		+0.93%

International Markets

Market Index	Close	Change
NIKKEI	19779.83	-75.67
		-0.38%
HANG SENG	24901.28	+508.49
		+2.08%
SENSEX	27661.40	+87.74
		+0.32%
FTSE 100	6673.38	+91.75
		+1.39%

Bonds

Bonds	% Yield
CND. 10 Year Bond	1.685
CND. 30 Year Bond	2.339
U.S.    10 Year Bond	2.3972
U.S. 30 Year Bond	3.1899

Currencies

BOC Close	Today
Canadian $	0.78980
US $	1.26615
Euro Rate 1 Euro=		Inverse
Canadian $	1.41251	0.70796
US $	1.11590	0.89614

Commodities

Gold	Close
London Gold Fix	1159.30
Oil	Close
WTI Crude Future	52.74

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, rebounding from a January low, amid optimism China’s markets are stabilizing and Greece will secure a bailout.

     Sun Life Financial Inc. and Manulife Financial Corp. rallied at least 1.9 percent as a decline in Canadian jobs sustained the view additional stimulus will be needed from the central bank. Bombardier Inc. sank 2.5 percent to the lowest level since 1993. Encana Corp. and Crescent Point Energy Corp. declined more than 4 percent as crude oil capped a second straight weekly drop.

     The Standard & Poor’s/TSX Composite Index rose 132.58 points, or 0.9 percent, to 14,411.07 at 4 p.m. in Toronto. The benchmark equity gauge lost 1.9 percent this week, the biggest one-week decline since March.

     Royal Bank of Canada jumped 1.5 percent and Toronto- Dominion Bank rose 1.1 percent as financial-services stocks increased 1.2 percent as a group. Eight of 10 industries in the S&P/TSX advanced on trading volume 1 percent higher than the 30- day average today.

     The Shanghai Composite Index jumped 4.5 percent, capping an 11 percent gain in two days, the biggest two-day advance since 2008. China is Canada’s second-largest trading partner after the U.S. and the world’s largest consumer of commodities.

     Greece submitted a package of measures to creditors to access a bailout of at least 53.5 billion euros, hailed by France as credible. The proposed spending cuts, pension savings and tax increases were being studied on Friday by the European Commission, the International Monetary Fund and the European Central Bank.

     The Canadian economy lost 6,400 jobs in June as the jobless rate held steady at 6.8 percent. Part-time work fell by 71,200, the biggest decline in more than four years. The Bank of Canada will deliver its next interest rate decision July 15 amid speculation a faltering economy will lead Governor Stephen Poloz to cut rates a second time this year.

     “This report is simply not strong enough in our mind to make up for a lot of the economic weakness that has been realized through the first half of the year,” said David Tulk, chief Canada macro strategist at Toronto-Dominion Bank’s TD Securities unit, in a note to clients. “We do not believe that this report challenges our call for a 25 basis-points cut in the overnight rate next week.”

 US

By Sofia Horta e Costa and Annelise Alexander

     (Bloomberg) — Stock investors got jolted in a zigzag week, with plunges around the world giving way to the biggest rallies in at least three years for China and Europe.

     Spurred by optimism on Greece, the Stoxx Europe 600 Index climbed 4.3 percent on Thursday and Friday, erasing earlier losses with the biggest two-day advance since 2011. The Shanghai Stock Exchange Composite Index jumped 11 percent in two sessions, the most in almost seven years, while the Standard & Poor’s 500 Index added 1.2 percent Friday to wipe out a weekly decline.

     While investors have sometimes come to regret bouts of bullishness of late, the end-of-week gains defused global markets where turbulence has ruled for the last month. The Chicago Board Options Exchange Volatility Index decreased 16 percent on Friday, the biggest drop of the year.

     “We’re clearly ending the week with a loud sigh of relief,” said Daniel Murray, head of research at EFG Asset Management in London. “It’s been interesting, but I think we all look forward to moving on.”

     Stocks are advancing in a global economy that while not exactly surging, is still growing. Morgan Stanley predicts worldwide expansion of almost 4 percent in the second half of this year, up from 2.9 percent in the first six months. The International Monetary Fund sees 2015 growth of 3.3 percent.

     The Stoxx Europe 600 rose 1.4 percent for the week amid speculation that Greece may finally secure a bailout. Shares had earlier tumbled to the lowest level since February, flirting with a correction, as Greek voters rejected austerity.

     Equities in Europe’s so-called peripheral markets saw the biggest swings — first bearing the brunt of a two-day selloff following the Greek vote, then rebounding.

     Spain’s IBEX 35 Index has surged 6.7 percent since Tuesday’s close, the most since 2012, while Portugal’s PSI 20 jumped 8.7 percent, the biggest three-day advance since 2010. In Italy, the FTSE MIB added 9.4 percent.

     The Athens stock exchange will stay closed through July 13. A U.S.-listed exchange-traded fund tracking its stocks climbed 3.8 percent for the week, paring its loss since the bourse closed on June 29 to 4.4 percent.

     The prospect of a deal to end a standoff between creditors and Greece’s Syriza-led government brought relief to financial markets. After months of escalating tension and price swings, Greece offered to meet most of the demands made by creditors in exchange for a bailout of 53.5 billion euros ($60 billion). The proposal still faced a weekend of political wrangling.

     Aiding global sentiment was the rebound in China, where unprecedented government intervention helped curb a stock rout that erased $3.9 trillion in less than a month.

     The Shanghai Composite Index rallied 4.5 percent to3,877.80 at Friday’s close, adding to Thursday’s 5.8 percent surge. With more than 1,300 companies still halted on mainland exchanges, trading was limited to 53 percent of the market.

     Official measures to support shares became more extreme during the week as declines deepened. They included a ban on stockholders and executives from selling stakes in listed companies for six months, an order for companies to buy equities and an investigation into short-selling.

     The rebound pared losses by the Shanghai Composite since its June 12 high to 25 percent. While the median price-to- earnings ratio in China has dropped to 57 from 108 at the height of the rally, valuations are almost three times as high as those on the S&P 500.

     U.S. equity investors watched stocks slip below a support level untouched since October, only to climb back to enter the weekend with the strongest momentum in two months.

     The S&P 500 ended flat, masking a volatile week. Stocks had the fourth-biggest drop of the year Wednesday that sent the benchmark gauge below its average price for the past 200 days, a move that has sparked rebounds in the past. Equities rallied 1.2 percent Friday, the best showing since May 8.

     The VIX, which jumped 19 percent in the first four days of the week, erased nearly all of that on the last day as the gauge retreated the most since December.

     “It was a volatile week, that’s for sure,” said Dan Greenhaus, chief global strategist in New York at BTIG LLC. “Clearly investors are focused squarely on Greek negotiations and the Chinese stock market, but the ramifications of both appear to be limited, hence the end-of-the week rally.”

     China and Greece diverted attention from U.S. economic data and the path of the Federal Reserve’s monetary policy, as investors grow concerned about global growth.

     While the IMF on Thursday cut its forecast for global growth this year, citing a weaker first quarter in the U.S., it expressed confidence that market turbulence from China to Greece won’t cause widespread damage.

     Minutes of the Federal Reserve’s June meeting, published Wednesday, indicated officials thought tighter monetary policy was warranted, despite concern over risk from abroad. Federal Reserve Chair Janet Yellen said Friday she still expects to raise interest rates this year.

     Alcoa Inc. unofficially kicked off the earnings season Wednesday. JPMorgan Chase & Co. and Wells Fargo & Co. are among S&P 500 firms reporting results next week. Analysts project earnings for companies on the gauge dropped 6.4 percent in the second quarter.

     “We could end up with some positive surprises,” said John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York. “If we don’t, I’ll have to go back to the drawing board.”

 

 

Have a wonderful evening everyone.

 

Be magnificent!

 It’s a funny thing about life;

if you refuse to accept anything but the best, you very often get it.

W. Somerset Maugham

 

As ever,

Leyla

All things are subject to interpretation whichever interpretation prevails

at a given time is a function of power and not truth.

Friedrich Nietzsche

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 cycling pack climbs towards the citadel of Namur during the fourth stage of the Tour de France cycling race, a 223.5 km stretch starting in Seraing, Belgium, and ending in Cambrai, France, Tuesday. Laurent Cipriani/AP

Tourists enjoy a snowball fight at the glacier on Zugspitze Mountain near Garmisch-Partenkirschen, southern Germany, Tuesday. Even on Zugspitze, Germany’s highest mountain, the temperatures can rise close to 70 degrees F on a hot and sunny summer day. Stephan Jansen/AP

Market Closes for July 7, 2015

Market Index	Close	Change
Dow Jones	17776.91	+93.33 +0.53%
S&P 500	2081.34	+12.58 +0.61%
NASDAQ	4997.459	+5.519
		+0.11%
TSX	14624.50	+30.93
		+0.21%

International Markets

Market Index	Close	Change
NIKKEI	20376.59	+264.47
		+1.31%
HANG SENG	24975.31	-260.97
		-1.03%
SENSEX	28171.69	-37.07
		-0.13%
FTSE 100	6432.21	-103.47
		-1.58%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.576	1.634
CND. 30 Year Bond	2.223	2.277
U.S.    10 Year Bond	2.2582	2.2850
U.S. 30 Year Bond	3.0399	3.0827

Currencies

BOC Close	Today	Previous
Canadian $	0.78592	0.79063
US $	1.27239	1.26482
Euro Rate 1 Euro=		Inverse
Canadian $	1.40047	0.71404
US $	1.10081	0.90842

Commodities

Gold	Close	Previous
London Gold Fix	1156.25	1166.00
Oil	Close	Previous
WTI Crude Future	52.33	52.53

Market Commentary:

Canada

By Eric Lam
     (Bloomberg) — Canadian stocks rose, reversing an earlierloss of as much as 1.4 percent, as a rebound in energy shares overshadowed a selloff in metals prices.
     Gran Tierra Energy Inc. and Crew Energy Inc. jumped more than 5.1 percent as oil climbed back from a drop of more than 3.7 percent. Semafo Inc., Silver Wheaton Corp. and First Quantum Minerals Ltd. sank at least 5.1 percent as all but three of 48 raw-materials producers retreated.
     The Standard & Poor’s/TSX Composite Index rose 30.93 points, or 0.2 percent, to 14,624.50 at 4 p.m. in Toronto, after reaching the lowest level since January during intraday trading. The benchmark Canadian equity gauge is little changed for the year.
     Eight of the 10 main industries in the index advanced, with utilities and energy companies climbing more than 1.3 percent. Trading volume was 22 percent above the 30-day average today.
     Raw-material shares fell 2.9 percent as a group to the lowest level since Dec. 24. Industrial metals dropped, with copper falling to the lowest in six years, as China’s stock-market slump heightened concern that demand will slow in the biggest consumer of raw materials. Aluminum and lead tumbled into bear markets.
     Canada’s trade deficit unexpectedly widened to C$3.34 billion, the second largest on record in May. The report adds to pressure on Bank of Canada Governor Stephen Poloz to cut interest rates next week.
     Greece sidestepped an immediate collision with creditors by promising new economic reform proposals as German Chancellor Angela Merkel warned that “only a few days” are left to reach a deal. Euro-area finance chiefs will discuss Greece’s request on a conference call Wednesday morning when the country’s banking system will remain shuttered for an eighth business day.

 US 

By Annelise Alexander
     (Bloomberg) — U.S. stocks rose, after the Standard & Poor’s 500 Index rebounded from a drop below its average price during the past 200 days, as speculation grew that Greece’s crisis would be contained.
     Altria Group Inc. climbed 3.5 percent to lead a consumer staples rally, while energy shares reversed an early drop. Utilities in the S&P 500 rose the most in more than three months. Miner Freeport-McMoRan Inc. lost 3.3 percent as industrial metal prices tumbled amid fears that demand for raw materials from China will slide.
     The S&P 500 climbed 0.6 percent to 2,081.34 at 4 p.m. in New York, after earlier falling as much as 1.2 percent. The Dow Jones Industrial Average added 93.33 points, or 0.5 percent, to 17,776.91. The Nasdaq Composite Index gained 0.1 percent. About 8.7 billion shares traded hands on U.S. exchanges Tuesday, 37 percent above the three-month average.
     “We’re really starting to get over the fear of Greece,” said Brad McMillan, chief investment officer of Waltham, Massachusetts-based Commonwealth Financial Network, which oversees $97 billion. “Economically it really doesn’t matter that much. It was a very real risk and pullbacks were rational. When you see a reaction to a market event and that event doesn’t seem to be having much impact at all, then that reaction can reverse very easily.”
     The S&P 500 bounced back after falling through the 200-day moving average, an event that has coincided with past rebounds. Stocks have only crossed the level once since 2012 — the period of last October’s selloff, which gave way to an 11 percent advance at the end of 2014. The index swung 39 points Tuesday from its lowest to highest level, the biggest reversal since a 45-point move on March 18. 

Have a wonderful evening everyone.

 

Be magnificent!

To correct a natural indifference I was placed half-way between misery and the sun.

Misery kept me from believing that all was well under the sun, and the sun taught me that history wasn’t everything.

Albert Camus

As ever,

Leyla

I believe in pink. I believe that laughing is the best calorie burner.

I believe in kissing, kissing a lot. I believe in being strong when everything seems to be going wrong.

I believe that happy girls are the prettiest girls. I believe that tomorrow is another day and I believe in miracles.

Audrey Hepburn

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Unsubscribe me from this list

Dear Friends, 

Tangents: 

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

PHOTOS OF THE DAY

Solar Impulse 2, a plane powered by the sun’s rays and piloted by Andre Borschberg, approaches Kalaeloa Airport near Honolulu, Friday. His 120-hour voyage from Nagoya, Japan broke the record for the world’s longest nonstop solo flight, his team said. Jean Revillard/AP

Cats eat at the Kis-Kis Cat Cafe in the Siberian city of Krasnoyarsk, Russia, Monday. A local animals rights group founded the shelter for dozen of homeless cats and combined it with the cafe, where visitors can communicate with animals for an hourly fee in addition to drinks, table games, books, and wifi. Ilya Naymushin/Reuters

Market Closes for July 6 , 2015

Market Index	Close	Change
Dow Jones	17683.58	-46.53 -0.26%
S&P 500	2068.76	-8.02 -0.39%
NASDAQ	4991.940	-17.273
		-0.34%
TSX	14593.57	-88.82
		-0.60%

International Markets

Market Index	Close	Change
NIKKEI	20112.12	-427.67
		-2.8%
HANG SENG	25236.28	-827.83
		-3.18%
SENSEX	28208.76	+115.97
		+0.41%
FTSE 100	6535.68	-50.10
		-0.76%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.634	1.697
CND. 30 Year Bond	2.277	2.344
U.S.    10 Year Bond	2.2850	2.3823
U.S. 30 Year Bond	3.0827	3.1865

Currencies

BOC Close	Today	Previous
Canadian $	0.79063	0.79566
US $	1.26482	1.25698
Euro Rate 1 Euro=		Inverse
Canadian $	1.39833	0.71512
US $	1.10559	0.90449

Commodities

Gold	Close	Previous
London Gold Fix	1166.00	1167.95
Oil	Close	Previous
WTI Crude Future	52.53	56.93

Market Commentary:

Canada

By Rebecca Penty

     (Bloomberg) — British Columbia is pledging to cap levies on Petroliam Nasional Bhd.’s natural gas export project as it expects to collect C$9 billion ($7.1 billion) from the venture by 2030.

     Canada’s westernmost province must compensate the Malaysian oil producer, known as Petronas, and its partners if it adds costs through changes to certain taxes or credits over the next 25 years, according to terms of an agreement signed May 20 that were released Monday.

     “The revenue opportunities are significant,” British Columbia Finance Minister Michael de Jong said in a briefing with reporters Monday.

     Petronas and its partners said last month that they will conditionally move ahead with the C$36 billion export terminal, among 19 proposed in British Columbia to ship liquefied natural gas to Asia. The agreement must be approved by the provincial legislature.

     Groups including the Pembina Institute, an environmental organization, have criticized the potential costs of the provincial government’s guarantees to Petronas. The government’s take is based on assumptions including a premium of $7 per million British thermal unit for LNG sold from Canada’s Pacific Coast over the Henry Hub U.S. benchmark gas price.

 US 

By Victoria Stilwell

     (Bloomberg) — From restaurants to real estate, service providers kept up their expansion in June as consumers helped the U.S. economy endure unsteady global demand.

     The Institute for Supply Management’s non-manufacturing index improved to 56 last month from 55.7 in May, the Tempe, Arizona-based group said Monday. A reading above 50 indicates expansion, and 15 of 18 industries reported growth.

     Sales and orders strengthened last month at service providers as persistent job and income growth encouraged households to spend. Further progress within the businesses that make up almost 90 percent of the economy points to a steady pickup in growth after an early-year pullback brought on by tepid capital investment and overseas markets.

     The report is “consistent with moderate growth in the overall economy — not exactly booming but not weak either,”said Scott Brown, chief economist at Raymond James Financial Inc. in St. Petersburg, Florida, who correctly forecast the index. “We’re seeing consumers in general feeling better, going out and spending money. We’re optimistic that that’s going to continue.”

     Arts and entertainment, real estate, and hotels and restaurants led the list of industries that reported expansion in June. Mining, which includes oil and gas well drilling, was among the three that contracted.

     Stocks slid, with the Standard & Poor’s 500 Index extending its steepest weekly drop since March, as Greece scrambled to avoid a cash crunch and energy shares tumbled with the price of oil. The S&P 500 fell 0.4 percent to 2,068.76 at the close in New York.

     The median estimate in a Bloomberg survey of 74 economists was 56.4, with estimates ranging from 54.8 to 58. The May reading was the lowest since April 2014. The ISM services survey covers an array of industries, including agriculture and construction.

     “We’re starting to see this slow, steady and incremental growth month over month,” Anthony Nieves, chairman of the survey, said on a conference call with reporters after the release.

     The new orders gauge increased to 58.3 in June from 57.9 the prior month, with 12 industries reporting growth in bookings. The business activity index, which parallels the ISM’s factory production gauge, climbed to 61.5 from 59.5 in May.

     A moderate pace of economic growth after a first-quarter setback is prompting service industries to temper the pace of hiring. The measure of employment dropped to 52.7, the lowest level since January, from 55.3 in May. Even with the decline in the gauge, 13 industries reported job growth.

     The ISM’s services index has exceeded the group’s manufacturing index for eight straight months as factories have battled the effects of a stronger dollar on exports and a slowdown in business investment in new equipment.

     “Although the non-manufacturing index has moderated since spring, the service sector has held up noticeably better than the manufacturing sector in the wake of the energy slowdown and stronger dollar,” Sarah House, an economist at Wells Fargo Securities LLC in Charlotte, North Carolina, wrote in a note to clients. “The service sector continues to propel the economy.”

     There are signs that manufacturing is starting stabilize. The ISM’s June factory index reached the highest level in five months.

     Homebuilders such as KB Home are optimistic that business will pick up alongside a strengthening recovery.

     “The national economy is continuing to improve with sustained job growth now occurring across the country,” Chief Executive Officer Jeffrey Mezger said on a June 19 conference call. “This improving employment and economic environment is in turn contributing to increased consumer confidence, which is currently at one of the highest levels reported since 2007.”

     Monday’s report adds to evidence that household spending may be firming after weakness earlier this year as consumers put paychecks from newly gained jobs to use.

     Household purchases increased 0.9 percent in May, the biggest advance since August 2009, after rising 0.1 percent in April, Commerce Department figures showed last month.

     Still, a tighter labor market that sparks wage growth will be needed to sustain such gains. While payrolls climbed by223,000 in June, average hourly pay was little changed and up 2 percent over the past 12 months, matching the pace that’s persisted throughout the recovery.

 

Have a wonderful evening everyone.

 

Be magnificent!

Each generation imagines itself to be more intelligent than the one that went before it,

and wiser than the one that comes after it.

George Orwell

As ever,

Leyla

“Choose a job you love, and you will never have to work a day in your life.

Confucius

 

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

 
Mass lightning bolts light up night skies by Daggett airport from monsoon storms passing over the high deserts early Wednesday, north of Barstow, California. Gene Blevins/Reuters

A pink flamingo shakes its wings during a hot summer day at the zoo of Wuppertal, Germany, Thursday. Wolfgang Rattay/Reuters

Market Closes for July 3 , 2015

Market Index	Close	Change
Dow Jones	17730.11	CLOSED
S&P 500	2076.78	CLOSED
NASDAQ	5009.215	CLOSED
TSX	14650.60	+12.61
		+0.9%

International Markets

Market Index	Close	Change
NIKKEI	20539.79	+17.29
		+0.8%
HANG SENG	26064.11	-218.21
		-0.83%
SENSEX	28092.79	+146.99
		+0.53%
FTSE 100	6585.78	-44.69
		-0.67%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.697	1.739
CND. 30 Year Bond	2.344	2.371
U.S.    10 Year Bond	2.3823	2.3841
U.S. 30 Year Bond	3.1865	3.1882

Currencies

BOC Close	Today	Previous
Canadian $	0.79566	0.79725
US $	1.25698	1.25431
Euro Rate 1 Euro=		Inverse
Canadian $	1.39469	0.71701
US $	1.10956	0.90123

Commodities

Gold	Close	Previous
London Gold Fix	1167.95	1165.25
Oil	Close	Previous
WTI Crude Future	56.93	58.33

 

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, paring a weekly loss in the final minutes of trading, as gains for metal companies and banks offset a decline in energy producers ahead of a crucial referendum in Greece Sunday.

     Potash Corp. of Saskatchewan Inc. gained 1 percent as the fertilizer producer seeks to meet with management of K+S AG after the German company rejected its takeover offer. Barrick Gold Corp. and Goldcorp Inc. increased at least 0.9 percent as the price of gold traded higher in London. Bonterra Energy Corp. and Bellatrix Exploration Ltd. retreated at least 3.4 percent as energy producers declined.

     The Standard & Poor’s/TSX Composite Index rose 44.40 points, or 0.3 percent, to 14,682.39 at 4 p.m. in Toronto. The benchmark Canadian equity gauge dropped 0.9 percent in a shortened trading week after a holiday Wednesday. U.S. markets are closed for the Independence Day holiday.

     Alamos Gold Inc. rose 3.1 percent and Agnico Eagle Mines Ltd. rallied 1.6 percent as raw-materials producers increased 0.9 percent as a group. Toronto-Dominion Bank and Royal Bank of Canada, the nation’s largest lenders, led a 0.5 percent increase in financial services stocks.

     Potash Corp. added 1 percent for a third straight advance.K+S’s suggestion that it’s worth at least 50 euros a share in atakeover bid is unwarranted, according to people familiar with the Canadian fertilizer maker.

     Eight of 10 industries in the gauge advanced on trading volume 70 percent lower than the 30-day average today.

     Enbridge Inc. lost 0.6 percent and TransCanada Corp. declined 0.4 percent as energy producers fell 0.3 percent as a group for a 1.8 percent weekly drop. Oil futures in New York fell 4.5 percent this week, capping the biggest weekly decline since March.

     European stocks extended declines after Greek Prime Minister Alexis Tsipras said the country needs a 30 percent debt so-called haircut. The Stoxx Europe 600 Index slid 0.5 percent, for its worst week since December. 

 US 

Market is Closed Today. 

Have a wonderful evening everyone.

 

Be magnificent!

Since we cannot change reality,

let us change the eyes which see reality.

 

Nikos Kazantzakis

As ever,

Leyla

 

“It will never rain roses:

when we want to have more roses, we must plant more roses.”

 
― George Eliot

 

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:  Full moon tonight.

Kenny G’s new CD set entitled  Brazilian Nights is terrific music.  I ordered it on Amazon after reading a review and been listening to it this past few nights.  I recommend it.

 

On this day in 1964, President Lyndon B. Johnson signed into law the Civil Rights Act during a nationally-televised ceremony at the White House.

Tomorrow the US markets are closed for the July 4^th holiday.

Gary and I are taking off on the boat for a few days to go sailing over to the San Juan islands.  I love being in the US for the 4^th of July J!  Karen is off next week for vacation as well.  Bonnie and Leyla will be here and of course, I’ll be checking in…

PHOTOS OF THE DAY

World record-holding pole vaulter Renaud Lavillenie of France jumps in front of the Eiffel Tower as he stands on the roof of a boat on the Seine River after a news conference in Paris, Thursday. Lavillenie will attend the IAAF Diamond League athletics meeting at the Stade de France Stadium in Saint-Denis near Paris on July 4. Philippe Wojazer/Reuters

Dancers of the Friedrichstadt-Palas­t company from the show ‘THE WYLD’ pose during a promotional photoshoot at a former National Security Agency listening station in Berlin, Germany, Thursday. The $13.5 million show has the largest production budget in the 95-year history of Friedrichstadt-Palas­t.Hannibal Hanschke/Reuters

Market Closes for July 2^nd, 2015

Market Index	Close	Change
Dow Jones	17730.11	-27.80     -0.16%
S&P 500	2078.22	+0.80     +0.04%
NASDAQ	5009.215	-3.909     -0.08%
TSX	14650.69	+97.36
		+0.67%

International Markets

Market Index	Close	Change
NIKKEI	20522.50	+193.18
		+0.95%
HANG SENG	26282.32	+32.29
		+0.12%
SENSEX	27945.80	-75.07
		-0.27%
FTSE 100	6630.47	+21.88
		+0.33%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.739	1.742
CND. 30 Year Bond	2.371	2.350
U.S.    10 Year Bond	2.3841	2.3224
U.S. 30 Year Bond	3.1882	3.0917

Currencies

BOC Close	Today	Previous
Canadian $	0.79725	0.80074
US $	1.25431	1.24884
Euro Rate 1 Euro=		Inverse
Canadian $	1.39028	0.71928
US $	1.10841	0.90220

Commodities

Gold	Close	Previous
London Gold Fix	1165.25	1176.00
Oil	Close	Previous
WTI Crude Future	56.93	58.33

Even being right 3 or 4 times out of 10 should yield a person a fortune, if he has the sense to cut his losses quickly on the ventures where he has been wrong. –Bernard Baruch, financier, speculator, statesman, presidential advisor, 1870-1965.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, after markets re- opened after a holiday, as the U.S. added jobs in June and investors speculated when the Federal Reserve will raise interest rates.

     Valeant Pharmaceuticals International Inc., the third- largest stock by market cap in the benchmark index, climbed 3.3 percent to pace gains among health-care companies. Suncor Energy Inc., the nation’s largest oil producer, rallied 0.8 percent even as crude erased a gain. Railway operators Canadian National Railway Co. and Canadian Pacific Railway Ltd. paced an advance in industrial shares.

     The Standard & Poor’s/TSX Composite Index rose 84.66 points, or 0.6 percent, to 14,637.99 at 4 p.m. in Toronto. Canadian markets were closed yesterday for the Canada Day holiday. U.S. markets will be closed tomorrow for a holiday.

     Valeant increased 3.3 percent and Concordia Healthcare Corp. gained 1.9 percent as health-care companies rose 2.9 percent as a group, the most in the S&P/TSX. Nine of 10 industries advanced on trading volume 7.3 percent higher than the 30-day average today.

     The U.S. economy added 223,000 jobs in June, following a 254,000 increase last month that was revised downward, a Labor Department report showed Thursday in Washington. The jobless rate fell to a seven-year low of 5.3 percent as more people left the work force, while wages stagnated.

     U.S. Federal Reserve policy makers have been watching the labor market as they consider raising the benchmark interest rate this year from near zero.

     “The confirmation of labor-market health the Fed has been looking for will have to wait at least one more month,” Royce Mendes, an economist at CIBC World Markets, said in a report. “With markets already pushing back the timing of the expected first rate hike because of uncertainty surrounding Greece, today’s data will likely drive expectations even further out.”

     Yanis Varoufakis said Greece won’t “extend and pretend” that it can pay its debts, vowing to quit as finance minister if voters don’t support him in Sunday’s referendum.

     Suncor advanced 0.8 percent and Bellatrix Exploration Ltd. added 1.4 percent. Oil for August delivery slipped 3 cents to $56.93 a barrel in New York.

US

By Annelise Alexander and Joseph Ciolli

     (Bloomberg) — U.S. stocks fell, with equities posting their biggest weekly decline since March, as investors looked toward a weekend referendum in Greece after jobs data reflected a more moderate pace of economic growth.

     The Standard & Poor’s 500 Index retreated less than 0.1 percent to 2,076.78 at 4 p.m. in New York, and marked a second consecutive weekly slide. The Dow Jones Industrial Average fell 27.80 points, or 0.2 percent, to 17,730.11. The Nasdaq Composite Index lost 0.1 percent, while the Russell 2000 Index dropped 0.7 percent. The U.S. market is closed Friday for a holiday.

     “You would think that the jobs report would have made the market rally, but it’s kind of fallen into the abyss of Greece,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. “The market can’t and won’t find it’s footing until the vote. Every rally and selloff are ultimately noise until that happens.”

     A Labor Department report Thursday showed the addition of 223,000 jobs in June followed a 254,000 increase in the prior month that was less than previously estimated. The jobless rate fell to a seven-year low of 5.3 percent as more people left the labor force. Average hourly earnings at private employers held at $24.95.

     The economy has just completed its sixth year of expansion since the recession ended in June 2009. While the job market has rebounded, faster wage growth has been slow to follow suit. The participation rate, which indicates the share of the working-age people in the labor force, decreased to 62.6 percent, the lowest since October 1977, from 62.9 percent.                          

     A separate report Thursday showed factory orders in May slipped more than forecast, down 1 percent compared with economists’ estimated 0.5 percent decline.

     The Federal Reserve is scrutinizing incoming data for signs the world’s largest economy can withstand the first interest- rate increase since 2006. Recent reports on housing, consumer spending and sentiment have helped support policy makers’ expectation that early year weakness was temporary, and growth will be sturdy enough for higher rates.

     Fed Chair Janet Yellen has said she expects the central bank to raise borrowing costs this year, and that subsequent increases will be gradual without following a predictable path.

     The S&P 500 halted a nine-quarter winning streak Tuesday, losing 0.3 percent in the past three months and extending its worst start to a year since 2010.

     Stocks in the benchmark are up 200 percent since March 2009 as earnings doubled and companies bought back about $2 trillion of their stock. Now the gauge is mired in one of the tightest ranges in two decades, caught in a tug-of-war over whether the economy is strong enough to withstand higher borrowing costs and bolster corporate profits.

     Equities fell for a second week, with the S&P 500 down 1.2 percent after negotiations over Greece’s bailout broke down following Prime Minister Alexis Tsipras’s unexpected announcement of a July 5 referendum on creditors’ aid terms.

     Greece is now living with capital controls and has shut banks and its stock market after its euro-area financial-aid package expired and it missed a payment to the International Monetary Fund.

     A survey showed 47 percent leaned toward a “yes” vote on the referendum, an endorsement of austerity and the international bailout. The “no” camp, the government’s position rejecting those terms, was 43 percent. The margin of error in the survey of 1,000 people was 3.1 percentage points.

     “Who wants to go home long stocks when the Greeks have the ball?” said John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York. “It’s the Greek issue, the long weekend and the natural skepticism that’s still in place.”                         

     The Chicago Board Options Exchange Volatility Index increased 4.4 percent to 16.79. The gauge, known as the VIX, had its biggest weekly gain since January, up almost 20 percent. Six of the S&P 500’s 10 main groups declined Thursday, led by financial and health-care companies. About 5.6 billion shares traded hands on U.S. exchanges, 11 percent below the three-month average.

     Banks dropped with Treasury yields after the jobs report, amid doubts about when the Fed will be able to raise rates. Regions Financial Corp. and KeyCorp lost at least 1.3 percent. Bank of America Corp. fell 1.1 percent, while JPMorgan Chase & Co. sank 0.8 percent.

     Health-care companies slipped, paced by declines in managed-care shares. Aetna Inc. and Humana Inc. decreased more than 2.6 percent, while UnitedHealth Group Inc. slid 1.3 percent.                         

     Centene Corp. fell 8 percent after agreeing to buy Health Net Inc. for about $6.3 billion in cash and stock, creating a combination of two smaller U.S. health insurers ahead of an expected round of mergers among the industry’s giants. Health Net rose 10 percent, the most in more than two years, to a record.

     Yelp Inc. tumbled 10 percent to a nearly two-year low after people with knowledge of the matter said the consumer-review website has temporarily decided not to pursue a sale.

     Energy shares gained, even as oil erased a rebound from the worse drop in almost three months. Chesapeake Energy Corp. and Tesoro Corp. climbed more than 2 percent. BP Plc jumped 5.1 percent, the most since January, after agreeing to pay a record $18.7 billion to resolve claims related to the 2010 Gulf of Mexico oil spill.

     Utility companies had their best gain in more than two months, up 1.4 percent, as the sector’s dividend payout becomes more attractive to investors amid the drop in Treasury yields. Duke Energy Corp. added 2 percent, the most in eight months, and Edison International gained 2 percent, its best since March 18.

     Semiconductors advanced for a third day, boosted by Intel Corp.’s 1.2 percent gain, the best in the Dow. President Renée James will step down to seek appointment as chief executive officer elsewhere in a reshuffle that cements CEO Brian Krzanich’s control over the world’s largest chipmaker.

 

Have a wonderful evening everyone.

 

Be magnificent!

We must refuse to be lifted off our feet.

A drowning man cannot save others.

Mahatma Gandhi

As ever,
 

Carolann

 

To exactly the opposite is also a form of imitation.

                         -G.C. Lichtenberg, 1742-1799

 

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