Month: November 2015

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Sinclair Oil’s green Dino float proceeds high above spectators along 6th Ave during the 89th Macy’s Thanksgiving Day Parade in the Manhattan borough of New York Thursday. Carlo Allegri/Reuters

The buildings around the Grand Place are illuminated during the opening of the Christmas Market in Brussels, Belgium, Friday. Brussels lowered its terror alert from four to three. Michael Probst/AP

Market Closes for November 27^th, 2015

Market Index	Close	Change
Dow Jones	17798.49	-14.90   -0.08%
S&P 500	2090.11	+1.24   +0.06%
NASDAQ	5127.524	+11.382   +0.22%
TSX	13368.24	-56.95
		-0.42%

International Markets

Market Index	Close	Change
NIKKEI	19883.94	-60.47
		-0.30%
HANG SENG	22068.32	-420.62
		-1.87%
SENSEX	26128.20	+169.57
		+0.65%
FTSE 100	6375.15	-17.98
		-0.28%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.571	1.565
CND. 30 Year Bond	2.292	2.281
U.S.    10 Year Bond	2.2201	2.2341
U.S. 30 Year Bond	2.9968	2.9944

Currencies

BOC Close	Today	Previous
Canadian $	0.74786	0.75235
US $	1.33715	1.32917
Euro Rate 1 Euro=		Inverse
Canadian $	1.41646	0.70598
US $	1.05932	0.94401

Commodities

Gold	Close	Previous
London Gold Fix	1057.40	1071.00
Oil	Close	Previous
WTI Crude Future	41.71	41.79

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, capping a weekly loss, as raw-materials producers retreated with gold prices tumbling to a five-year low amid increasing bets the Federal Reserve will raise interest rates next month.

     The Canadian equity market, one of the worst-performing in the world this year amid a slump in commodities prices, is poised to beat its U.S. peers for the first time since 2010 next year as investors have gotten overly pessimistic, according to BMO Capital Markets Chief Investment Strategist Brian Belski.

     “Canada is down, but not out,” Belski said in a 2016 market outlook report to clients Nov. 25. “The recovery we expected in the fourth quarter has only been delayed and is one of the main reasons we believe Canada will be a surprise outperformer in 2016. Any positive news stemming from emerging markets, Europe and commodity prices will likely be a strong positive tailwind for Canadian stocks.”

     The Standard & Poor’s/TSX Composite Index fell 56.95 points, or 0.4 percent, to 13,368.24 at 4 p.m. in Toronto. It has dropped 8.6 percent this year, trailed only by Singapore and Greece among developed markets. 

     Belski forecasts the S&P/TSX to close 2016 at 15,300, a 14 percent increase from current levels. Most global managers are now “grossly underweight” Canadian equities, he said.

     “The ‘Eeyore’ market continues, as most Canadian-centric investors continue to focus on the doom-and-gloom trade while dictating their investment conclusions with fear and emotion,” Belski said.

     Energy and raw-materials producers, along with health-care stocks, have fallen at least 22 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Fed as soon as December have crimped commodities prices.

     Barrick Gold Corp. and Goldcorp Inc. dropped at least 2.6 percent as raw-materials producers lost 2.1 percent as a group, the most in the benchmark equity gauge. Gold futures fell 1.3 percent to settle at $1,056.20 an ounce in New York. Gold posted its sixth straight week of losses, the longest such run in two years.

     Canadian Oil Sands Ltd. retreated 5.6 percent for the worst loss in almost two months. Suncor Energy Inc. yesterday said it may scrap its $4.5 billion hostile bid for the company if Alberta regulators endorse a poison pill that would give the target company more time to find other bidders. Oil producers tumbled 1.3 percent as crude futures fell 3.1 percent in New York, paring a weekly advance.

US

By Anna-Louise Jackson

     (Bloomberg) — The year’s strongest week for U.S. equities was followed by one of its quietest, with energy stocks underpinning microscopic gains in a holiday-shortened week.

     Stocks moved the smallest amount since July as the Thanksgiving holiday damped trading following the previous week’s 3.3 percent surge in the Standard & Poor’s 500 Index. Mixed economic results and geopolitical unrest did little to sway equities ahead of next week’s jobs report and a Federal Reserve meeting scheduled to conclude on Dec. 16.

     The S&P 500 rose 0.04 percent in the 3 1/2 days to 2,090.11, its eighth gain in nine weeks. The gauge closed 1.9 percent below its May peak and, with one day left in November, is up 0.5 percent for the month after rallying 8.3 percent in October. The Russell 2000 Index surged 2.3 percent for the week to close at its highest level since Aug. 19.

     Volume was light as investors honed their focus on the future of monetary policy in the U.S., said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management, which oversees $27 billion. “The market continues to come to peace with the idea that the Fed will do its first increase in mid-December.”

     Compared with where they were leading up to the last Fed meeting in October, equities are in a much improved state. At the start of that month, the S&P 500 was still down 8.6 percent from its August high, while the Chicago Board Options Exchange Volatility Index was at 22.55. Three weeks ahead of the forthcoming meeting, shares in the benchmark gauge are back in the range they were trading weeks before the correction started and the VIX has retreated back to 15.12, just above its pre- selloff average of 14.9.

     Still, it’s not like investors have made up their minds about the future. The S&P 500 has alternated gains and losses over the last nine straight sessions, the longest such streak since 2013.

     Companies with a heavier domestic revenue stream are the likeliest to do well amid economic reports that show positive U.S. growth — or at the very least, “numbers that aren’t near as bad,” said Tom Stringfellow, president and chief investment officer of San Antonio-based Frost Investment Advisors LLC, which manages about $11 billion. “What’s really getting a bid right now are those companies that are less impacted by dollar strength overseas.”

     Economic reports showed mixed results. Orders for U.S. business equipment climbed more than forecast in October, indicating steady domestic demand is encouraging corporate investment even as global sales waver. Meanwhile, consumers are benefiting from accelerating income gains, though that didn’t translate to higher household spending or confidence measures.

     The week’s economic data didn’t change the course of a potential rate hike and “the market’s waiting for what the Fed’s actually going to do,” said Bob Baur, chief global economist at Principal Global Investors in Des Moines, Iowa. The firm oversees $333 billion. It’s also taking a breather because October’s “huge rebound might’ve been a little too much, too fast,” he said.

     The probability of a boost to interest rates in next month’s meeting is 72 percent, according to fed fund futures. Amid more certainty about the timing, “the only thing that might change it is if we have a hugely discouraging jobs report,” Baur said. And even that doesn’t seem very likely given the decline in initial unemployment claims.

     Similarly, the market was unfazed by renewed concerns about geopolitical tensions after a Russian warplane was downed by Turkish forces. Meanwhile, Pfizer Inc.’s $160 billion megadeal with Allergan Plc was met by a cool reception. Allergan rose 2.3 percent on the week while Pfizer increased 1.9 percent.

     Higher oil prices helped to spur a 1.3 percent gain for energy stocks, capping a second consecutive week of gains. Meanwhile, consumer-staples stocks rose each day of trading to close at the highest level in more than three weeks. Utility stocks, the week’s biggest laggard, fell 1.6 percent.

     A volatility measure fell for a second consecutive week. The Chicago Board Options Exchange Volatility Index has tumbled more than 60 percent after spiking to the highest in almost four years during the S&P 500’s summer swoon. Investors may need to brace for higher volatility ahead of the Fed’s meeting.

     “We still will see volatility, particularly because there’s a lot of lead-up to the Fed meeting,” said Tom Anderson, who helps oversee about $8 billion as chief investment officer at Boston Private Wealth. “We’ll likely have choppiness over the coming weeks.”

 

Have a wonderful weekend everyone.

 

Be magnificent!

“In order to succeed, we must first believe that we can.” Nikos Kazantzakis

 

 

As ever,

 

Karen
 

 

“Always do your best. What you plant now, you will harvest later.” Og Mandino

 

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

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

A winter storm clears at sunset over Interstate 80 near Baxter, Calif., Wednesday. Max Whittaker/Reuters

Workers collect customer orders during Black Friday deals week at an Amazon fulfilment center in Hemel Hempstead, Britain, Wednesday.Neil Hall/Reuters

Market Closes for November 26^th, 2015

MarketIndex	Close	Change
DowJones	17813.39	Closed
S&P 500	2088.87	Closed
NASDAQ	5116.143	Closed
TSX	13420.94	+17.52
		+0.13%

International Markets

MarketIndex	Close	Change
NIKKEI	19944.41	+96.83
		+0.49%
HANGSENG	22488.94	-9.06
		-0.04%
SENSEX	25958.63	+182.89
		+0.71%
FTSE 100	6393.13	+55.49
		+0.88%

Bonds

Bonds	% Yield	Previous  % Yield
CND.10 Year Bond	1.565	1.591
CND.30 Year Bond	2.281	2.296
U.S.   10 Year Bond	2.2341	2.2377
U.S.30 Year Bond	2.9944	3.0024

Currencies

BOC Close	Today	Previous
Canadian $	0.75235	0.75168
US$	1.32917	1.33036
Euro Rate1 Euro=		Inverse
Canadian $	1.40986	0.70929
US$	1.06071	0.94277

Commodities

Gold	Close	Previous
London GoldFix	1071.00	1068.00
Oil	Close	Previous
WTI Crude Future	41.79	41.79

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose in light trading as raw-materials producers rallied with industrial metals on news China is considering measures to support slumping prices, overshadowing a drop in energy shares after crude halted a three-day gain.

     Copper producer First Quantum Minerals Ltd. added 6.4 percent as raw-materials producers climbed 1.1 percent, offsetting a 0.6 percent retreat in oil producers. European markets rose as the MSCI All-Country World Index of developed and developing markets advanced a second day. U.S. markets are closed for the Thanksgiving holiday.

     Zinc and copper led an advance in base metals as China weighed state purchases, output cuts and a probe into short- selling in an effort to stem the rout in commodities prices this year. The country’s largest copper and nickel suppliers plan to meet this week to weigh their response to declines, according to people with knowledge of the matter. The London Metal Exchange’s index of six industrial metals is heading for its biggest annual decline since the global financial crisis.

     Crude futures fell for the first time this week, declining 1.2 percent in New York after advancing 6.6 percent the previous three days as figures showed this week that U.S. stockpiles are increasing to near a record, countering signs drilling is slowing.

     The Standard & Poor’s/TSX Composite Index rose 21.77 points, or 0.2 percent, to 13,425.19 at 4 p.m. in Toronto on trading volume 64 percent lower than the 30-day average. It has dropped 8.3 percent this year, trailed only by Singapore and Greece among developed markets. 

     Energy and raw-materials producers, along with health-care stocks, have fallen at least 21 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.

     Canadian Oil Sands Ltd. fell 0.9 percent, erasing an earlier gain after Suncor Energy Inc. said in a regulatory filing there was a “real” chance it won’t extend its $4.5 billion bid for the company if the deadline is extended. Canadian Oil Sands yesterday said it has met with one potential rival bidder and has plans to do the same with at least three others in coming weeks.

     Valeant Pharmaceuticals International Inc. increased 2.2 percent, halting a three-day retreat. Shares of the embattled drugmaker declined yesterday after a hedge fund long bearish on Valeant published a new list of pharmacies it said were probably tied to the company. Valeant said the allegations contained “significant inaccuracies.”

     Briefly the largest company in Canada by market capitalization this year, Valeant has plunged 66 percent from an Aug. 5 high amid scrutiny by investors, lawmakers and regulators over its pricing practices.

     Jean Coutu Group Inc. tumbled 8.4 percent, the most in seven years, after the Quebec government introduced a bill that would open up a bidding system for the manufacture of generic drugs in the province, potentially cutting profit at the firm. Jean Coutu operates retail pharmacies and makes generic drugs through its Pro Doc Ltd. unit.

US

Markets are closed today.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Logic will get you from A to B. Imagination will take you everywhere.” Albert Einstein

 

 

As ever,

 

Karen
 

 “The true secret of happiness lies in taking a genuine interest in all the details of daily life.” William Morris

 

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

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 

A man stops to look at a frozen handrail as he walks his dogs along the coastline in Dalian, Liaoning province, China, Wednesday. Reuters

Santa Claus, from the Macy’s Thanksgiving Day Parade, visits the trading floor of the New York Stock Exchange before the opening bell Wednesday. Richard Drew/AP

Market Closes for November 25^th, 2015

Market Index	Close	Change
Dow Jones	17813.39	+1.20   +0.01%
S&P 500	2088.87	-0.27   -0.01%
NASDAQ	5116.143	+13.334   +0.26%
TSX	13403.42	-4.41
		-0.03%

International Markets

Market Index	Close	Change
NIKKEI	19847.58	-77.31
		-0.39%
HANG SENG	22498.00	-89.63
		-0.40%
SENSEX	25775.74	-43.60
		-0.17%
FTSE 100	6337.64	+60.41
		+0.96%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.591	1.616
CND. 30 Year Bond	2.296	2.322
U.S.    10 Year Bond	2.2341	2.2377
U.S. 30 Year Bond	2.9944	3.0024

Currencies

BOC Close	Today	Previous
Canadian $	0.75209	0.75168
US $	1.32962	1.33036
Euro Rate 1 Euro=		Inverse
Canadian $	1.41222	0.70811
US $	1.06212	0.94151

Commodities

Gold	Close	Previous
London Gold Fix	1068.00	1076.40
Oil	Close	Previous
WTI Crude Future	41.79	41.27

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little changed as a rebound in Valeant Pharmaceuticals International Inc. fizzled in afternoon trading, offsetting gains in consumer shares and Bombardier Inc.

     Consumer-staples companies advanced 1.4 percent. Alimentation Couche-Tard Inc. added 1.7 percent to a record after the gas-bar and convenience store retailer raised its dividend and posted second-quarter earnings ahead of estimates yesterday. George Weston Ltd., parent of supermarket chain Loblaw Cos., jumped 2.9 percent, bringing its two-day gain to 4.2 percent, the most in a year.

     The Standard & Poor’s/TSX Composite Index fell 4.41 points, or less than 0.1 percent, to 13,403.42 at 4 p.m. in Toronto. The index was up as much has 0.6 percent earlier in the day. It has dropped 8.4 percent this year, trailed only by Singapore and Greece among developed markets. 

     Valeant retreated 0.9 percent, after surging as much as 3.3 percent to recover from a loss of 5 percent early in the day. Sydney-based Bronte Capital in a blog posting identified 78 pharmacies with names alluding to chess moves or to Stephen King novels it claims are probably tied to the drugmaker. The hedge fund has a short-selling position against Valeant that would let it profit on the stock’s decline, the company confirmed in an e- mail.

     Briefly the largest company in Canada by market capitalization this year, Valeant has plunged 67 percent from an Aug. 5 all-time high amid scrutiny over its drug pricing practices and relationship with mail-order pharmacies such as Philidor RX Services, first highlighted by short-seller Andrew Left’s Citron Research.

     Activist investor Bill Ackman has been a staunch backer of the company, increasing his fund’s stake in Valeant to 9.9 percent, from 5.7 percent as of Sept. 30, in a series of transactions starting in October, according to a Monday regulatory filing. Ackman also defended Valeant at length in a marathon conference call Oct. 30.

     Oil producers fell 0.7 percent, halting a two-day advance, after a government report showed that U.S. crude, gasoline and distillate fuel stockpiles increased.

     Energy and raw-materials producers, along with health-care stocks, have fallen at least 21 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.

     Bombardier jumped 12 percent, the most in seven weeks, after a three-day decline brought it to the lowest level in almost three months. While profit and sales could fall next year, recent investments from within the company’s home province of Quebec have improved liquidity and buoyed the outlook for aircraft-development programs, Bombardier said Tuesday at its annual investor day in New York.

US

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — Most U.S. stocks rose in light trading, while bonds fluctuated as signs Russia won’t escalate tensions after the downing of its warplane saw investors to shift their attention to evidence the American economy is robust enough to withstand higher interest rates.

     The Russell 2000 Index of small-cap equities led gains, while the Standard & Poor’s 500 Index meandered amid below- average volumes ahead of Thursday’s Thanksgiving holiday in the U.S. The dollar strengthened as orders data added to the picture of a stabilization in manufacturing, even as consumer spending climbed less than was forecast. The euro slipped to a seven- month low on bets regional policy makers will bolster stimulus, while crude oil rose above $43 a barrel. Brazilian assets tumbled as a graft scandal widened.

     U.S. and German leaders called for an easing of tensions a day after Turkey’s downing of the Russian jet threatened to escalate the conflict in Syria, unsettling financial markets. In the U.S., the biggest part of the economy is off to a slow start to the holiday season, adding an element of doubt as to the strength of the economic recovery even as goods orders pick up. Speculation is mounting that the Federal Reserve will boost interest rates before the year is out, just as the European Central Bank increases stimulus.

     “Consumers are in pretty good shape, but continue to be relatively conservative in how they’re spending money,” said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management, which oversees $27 billion. “It’s a typical mixed bag of economic news. It will be a light trading day.”

     The S&P 500 fell less than 0.1 percent to 2,088.87 as of 4 p.m. in New York, capping its third straight move of less than 0.2 percent following its best weekly advance this year. Trading in S&P 500 stocks was 31 percent below the 30-day average. The Russell 200 jumped 0.8 percent to its highest level since Nov. 6.

     Energy shares trimmed earlier declines after U.S. government data showed crude-oil stockpiles rose less than analysts forecast. Pfizer Inc. climbed 2.8 percent to lead health-care companies’ advance. Macy’s Inc. gained 1.9 percent and travel-related companies rebounded to pace an increase among consumer discretionary companies.

     The Stoxx Europe 600 Index rose 1.4 percent, as travel and leisure stocks rebounded from the biggest drop since September. Abengoa SA’s bonds and stock tumbled to records after the embattled renewable-energy company said it was seeking preliminary protection from creditors. Banco Santander SA, Spain’s largest bank, and Banco Popular Espanol SA, the sixth- biggest, dropped more than 2 percent.

     The MSCI Asia Pacific Index slipped 0.5 percent Wednesday, led by losses in Japan and Australia.

     Yields on the benchmark U.S. 10-year note fell one basis point, or 0.01 percentage point, to 2.23 percent. The yield touched 2.2 percent Tuesday, the lowest level since Nov. 4. U.S. bond markets are shut Thursday for the holiday and open for a partial session Nov. 27.

     The yield difference between two- and 10-year Treasuries shrank to the narrowest since February amid lackluster inflation and as bets on a December rate hike from the Fed hold above 70 percent.

     Euro-area government bonds advanced on bets economic stimulus will be expanded before the year is out. ECB Vice President Vitor Constancio fueled that speculation, saying risks to the euro-area economy are to the downside in a Bloomberg TV interview Wednesday.

     Germany’s two-year note yields slipped to a record alongside those of peers including Spain and Belgium. Yields were negative on German bonds with maturities out as far as seven years on Wednesday.

     The Bloomberg Dollar Spot Index, a gauge of the greenback versus 10 major peers, rose 0.1 percent following a 0.3 percent retreat last session. The euro fell 0.2 percent to $1.0619, nearing the $1.0458 level reached on March 16, its weakest since January 2003. The currency dropped 0.1 percent to 130.32 yen on Wednesday.

     Central bank policy makers including ECB President Mario Draghi have said they will do whatever is required to ward off deflation before their Dec. 3 meeting. Any move by the Fed to raise rates in December would dim the allure of the 19-nation currency versus the greenback.

     The Ibovespa stock gauge sank 2.9 percent, the most since Oct. 13, while the Brazilian currency dropped 1.2 percent, the most among 16 major currencies tracked by Bloomberg. Billionaire Andre Esteves, who transformed Grupo BTG Pactual into the largest independent investment bank in the region, was detained Wednesday, sending shares of the lender down a record 21 percent. Delcidio Amaral, the leader of the government coalition in the Senate, was also held.

     Brazil’s equity market has lost about a third of its value since March 2014, when a widening probe into a pay-to-play scheme between an alleged cartel of builders and state-run oil producer Petroleo Brasileiro SA left President Dilma Rousseff fighting for her political survival. The lack of support from Congress had the government struggling to approve measures that could shore up the nation’s finances, seeing Brazil ousted from a group of investment-grade countries in September.

     Bank Itau Unibanco Holding SA and Petrobras led Ibovespa losses, while Brazil’s $4.3 billion in bonds due 2025 fell the most in three weeks.

     Russia’s ruble declined for the third time in four days and Turkey’s lira dropped to a two-week low as Russia ratcheted up criticism of Turkey for shooting down the warplane on Tuesday. Chinese shares rallied amid speculation state intervention to stabilize the market is working, with the Shanghai Composite Index up 0.9 percent amid losses throughout the region.

     West Texas Intermediate crude climbed 0.4 percent to $43.04 a barrel after earlier retreating back below $42. Crude had gained more than 6 percent over the previous two trading sessions. The U.S. report showed that crude, gasoline and distillate fuel stockpiles increased last week.

     Gold fell to near a five-year low as investors focused on data showing an increase in U.S. orders for business equipment and a drop in jobless claims, boosting speculation over the Fed’s action on rates. Higher borrowing costs damp the metal’s appeal as a store of value.

     Copper, zinc and aluminum traded near their lowest levels in six years, and nickel has slumped this week to the least in more than a decade. Iron ore has taken a fresh beating, with prices sinking to the lowest level in six years as output cuts at Chinese mills hurt demand while low-cost supplies from the biggest miners expand.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“What is the difference between an obstacle and an opportunity? Our attitude toward it. Every opportunity has a difficulty, and every difficulty has an opportunity.” 
― J. Sidlow Baxter 

 

As ever,

 

Karen
 

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

 

 

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

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

Kazakh herdsmen drive their sheep and goats through snow-covered fields in Guozigou valley in Yili, Xinjiang Uighur Autonomous Region, China. China Daily/Reuters

The sun rises behind the Lower Manhattan skyline, seen from The Heights neighborhood of Jersey City, N.J., Tuesday. Julio Cortez/AP

Market Closes for November 24^th, 2015

Market Index	Close	Change
Dow Jones	17812.19	+19.51   +0.11%
S&P 500	2089.14	+2.55   +0.12%
NASDAQ	5102.809	+0.331   +0.01%
TSX	13407.83	+25.45
		+0.19%

International Markets

Market Index	Close	Change
NIKKEI	19924.89	+45.08
		+0.23%
HANG SENG	22587.63	-78.27
		-0.35%
SENSEX	25775.74	-43.60
		-0.17%
FTSE 100	6277.23	-28.26
		-0.45%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.616	1.617
CND. 30 Year Bond	2.322	2.328
U.S.    10 Year Bond	2.2377	2.2482
U.S. 30 Year Bond	3.0024	3.0032

Currencies

BOC Close	Today	Previous
Canadian $	0.75168	0.74828
US $	1.33036	1.33641
Euro Rate 1 Euro=		Inverse
Canadian $	1.41629	0.70607
US $	1.06459	0.93933

Commodities

Gold	Close	Previous
London Gold Fix	1076.40	1070.50
Oil	Close	Previous
WTI Crude Future	41.27	39.98

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for the first time in three days, as commodities producers jumped with the price of oil after Turkey’s downing of a Russian warplane near the Syrian border sparked concern of supply interruptions.

     Equities also got a boost after a Kremlin spokesman said Russia’s response won’t include the military, fueling speculation any fallout from the incident will be contained. Resource producers advanced at least 1.4 percent in Canada to lead equities higher.

     Turkey’s action near the border with northwestern Syria marked the first direct clash between the foreign powers embroiled in the civil war and sparked selling in global equities in morning trading. Canada’s resource-rich equity market rose as crude rallied on speculation supplies from the Middle East may be disrupted.

     Bombardier Inc. fell 4.8 percent after predicting a decline in profit next year. Royal Bank of Canada slipped 0.3 percent to lead lenders lower. Crew Energy Inc. and Ecnana Corp. jumped at least 6.3 percent.

     The Standard & Poor’s/TSX Composite Index rose 25.45 points, or 0.2 percent, to 13,407.83 at 4 p.m. in Toronto. The index has pared declines for the year to 8.4 percent, trailed only by Singapore and Greece among developed markets. 

     Russian President Putin accused Turkey of being an accomplice of terrorism and warned of “very serious consequences” for their relations. The escalating tension in the region comes with Brussels on the highest-level terror alert and after the U.S. State Department issued a global alert for Americans.

     Raw-materials and energy producers, which account for almost 30 percent of Canada’s benchmark stock index, were two of the three industries among 10 in the S&P/TSX to advance. Consumer staples stocks added 0.3 percent after Alimentation Couche-Tard Inc. posted second-quarter earnings ahead of estimates and boosted its dividend.

     Encana jumped 6.5 percent and Cenovus Energy Inc. added 1.7 percent as energy producers rallied 1.5 percent as a group. West Texas Intermediate touched a high of $43.46 with volume of all futures traded 18 percent higher than the 100-day average.

     Energy and raw-materials producers, along with health-care stocks, have fallen at least 20 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.

     Bombardier fell for a third day of losses. The struggling planemaker predicted a drop in 2016 earnings at its annual investor day in New York amid lower output of its biggest current business jets and costs from the oft-delayed C Series airliner.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks erased early losses as investors shook off concerns over the downing of a Russian warplane by Turkish forces, and energy shares rallied for their first back- to-back gains in three weeks.

     Commodity companies led a rebound, with raw-materials joining energy to rise the most among the S&P 500’s main groups. Airlines slumped along with travel-related shares after a government warning to American travelers abroad coupled with a jump in crude prices.

     The Standard & Poor’s 500 Index rose 0.1 percent to 2,089.14 at 4 p.m. in New York, after earlier falling as much as 0.8 percent. The gauge has gone without two straight winning sessions since Nov. 3. The Dow Jones Industrial Average erased a 109-point slide to rise 19.51 points, or 0.1 percent, to 17,812.19. The Nasdaq Composite Index was little changed. About 6.9 billion shares traded hands on U.S. exchanges, 6.8 percent below the three-month average.

     “When you see this type of uncertainty happening, it reinforces looking at the U.S. as a safe haven,” said Tom Anderson, who helps oversee about $8 billion as chief investment officer at Boston Private Wealth. “The U.S. economy is in very solid shape. We’re pretty positive on equities as a result. But there’s certain to be noise and volatility around those events.”

     Turkey shot down the Russian warplane near the border with northwestern Syria, drawing an angry rebuke from President Vladimir Putin and marking the first direct clash between foreign powers embroiled in the civil war. He said Russia “won’t tolerate such crimes” but stopped short of threatening any military response against Turkey, which is a member of the North Atlantic Treaty Organization, warning only of “serious consequences” for bilateral ties.

     While global financial markets were jolted by concerns that the situation could escalate, political analysts in Russia and Europe said that seemed unlikely given the risks associated with any conflict between Russia and a NATO member. The incident comes with Brussels on the highest-level terror alert and after the U.S. State Department issued a global alert for Americans.

     The geopolitical tensions overshadowed data today that showed the economy expanded at a faster pace in the third quarter than previously reported, bolstering the Federal Reserve’s case for raising borrowing costs for the first time since 2006. Traders are now pricing in a 74 percent probability that the Fed will increase interest rates next month.

     A separate report showed home prices climbed more than estimated in September compared to a year earlier, signaling residential real estate is sustaining momentum. Another gauge showed consumer confidence unexpectedly fell in November to the lowest since September 2014.

     Stocks struggled to add to an advance following the S&P 500’s strongest weekly gain this year, with the gauge little changed from its Friday close. The benchmark is 2 percent away from its May record after rallying 12 percent from a summer swoon and its first correction in four years.

     The Chicago Board Options Exchange Volatility Index rose 2 percent Tuesday to 15.93, trimming an earlier 10 percent rise. The measure of market turbulence known as the VIX fell 23 percent last week, the most since July.

     Six of the S&P 500’s 10 main industries advanced, with energy and raw-material companies up the most. Financial, utility and industrial companies were the worst performers.

     Energy stocks rose for second day, up 2.2 percent on higher oil prices. Marathon Oil Corp. and Chesapeake Energy Corp. added more than 5.5 percent, while Pioneer Natural Resources Co. rose to a five-month high. Exxon Mobil Corp. advanced 2 percent.

     Among raw materials, Newmont Mining Corp. gained 2.5 percent as gold rose for the first time in three sessions amid demand for haven assets. Steelmaker Nucor Corp. climbed 3.7 percent after analysts at BB&T Corp. rated the shares a buy. Miner Freeport-McMoRan Inc. added 3.8 percent for its first climb in four sessions as copper rallied.

     Analog Devices Inc. rallied 6.4 percent to lead semiconductors in the benchmark index higher after the chipmaker posted better-than-expected earnings. Avago Technologies Ltd. and Skyworks Solutions Inc. gained more than 2.5 percent.

     Dollar Tree Inc.’s better-than-expected earnings propelled the shares up 6.6 percent to the highest since 2013. Keurig Green Mountain Inc. and Campbell Soup Co. rose more than 3 percent, though the broader consumer-staples group was little changed. Campbell gained after forecasting full-year profit above analysts’ estimates, even as it trimmed its sales outlook.

     A group of homebuilding stocks rose 1.4 percent to the highest level in two months on better-than-expected increases in home prices in September. D.R. Horton Inc., the largest U.S. homebuilder, advanced 1.5 percent to a level last seen in 2006.

     Consumer-discretionary stocks fell amid a slump in travel- related companies. Priceline Group Inc., Expedia Inc. and TripAdvisor Inc. retreated more than 1.9 percent, while cruise operators Royal Caribbean Cruises Ltd. and Carnival Corp. also sank at least 1.9 percent.

     Similarly, shares of industrial companies were weighed by a selloff in airline operators. The Bloomberg U.S. Airlines Index slumped 2.7 percent, its biggest decline in seven weeks, as United Continental Holdings Inc. and Delta Air Lines Inc. fell at least 3 percent.

     Outside of the travel companies among consumer shares, Signet Jewelers Ltd. declined 4.1 percent, the most since February 2014. Its quarterly results missed analysts’ estimates and its outlook fell short of some forecasts.

     Three of the Internet’s biggest names — Google parent Alphabet Inc., Amazon.com Inc. and Facebook Inc. — fell at least 0.9 percent. Those shares, along with Priceline and a 1.4 percent drop in Netflix Inc., dragged the Nasdaq Internet Index down 0.9 percent after it closed yesterday at a record.

     Financial shares fell for a second day, with real-estate companies among the worst performers in the group. Mall owner Simon Property Group Inc. lost 2 percent. SL Green Realty Corp. and AvalonBay Communities Inc. slipped more than 1.1 percent.

     The earnings season is drawing to a close, with almost all members of the gauge having reported. Of those, 74 percent beat profit estimates, while only 44 percent exceeded sales forecasts. Analysts project profits for index members fell 3.8 percent in the third quarter, compared with expectations for a 7.2 percent drop at the start of the season.

 

Have a wonderful evening everyone.

 

Be magnificent!

 “Dictionary is the only place that success comes before work. Hard work is the price we must pay for success. I think you can accomplish anything if you’re willing to pay the price.” Vince Lombardi

 

As ever,

 

Karen
 

 “The starting point of all achievement is desire.” Napoleon Hill

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

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

People visit the Christmas market on Alexanderplatz on opening day in Berlin Monday. Traditional Christmas markets will run until the end of December. Hannibal Hanschke/Reuters

A view of one of the Petronas Towers is seen from a window of its twin building during the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur, Malaysia, Sunday. Jorge Silva/Reuters

Market Closes for November 23^rd, 2015

Market Index	Close	Change
Dow Jones	17792.81	-31.00   -0.17%
S&P 500	2086.54	-2.63   -0.13%
NASDAQ	5102.477	-2.442   -0.05%
TSX	13378.15	-55.34
		-0.41%

International Markets

Market Index	Close	Change
NIKKEI	19879.81	+20.00
		+0.10%
HANG SENG	22665.90	-88.82
		-0.39%
SENSEX	25819.34	-49.15
		-0.19%
FTSE 100	6305.49	-29.14
		-0.46%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.617	1.622
CND. 30 Year Bond	2.328	2.327
U.S.    10 Year Bond	2.2482	2.2605
U.S. 30 Year Bond	3.0032	3.0175

Currencies

BOC Close	Today	Previous
Canadian $	0.74828	0.74902
US $	1.33641	1.33508
Euro Rate 1 Euro=		Inverse
Canadian $	1.42133	0.70357
US $	1.06355	0.94024

Commodities

Gold	Close	Previous
London Gold Fix	1070.50	1081.75
Oil	Close	Previous
WTI Crude Future	39.98	40.39

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, erasing early gains as Valeant Pharmaceuticals International Inc. slumped, overshadowing an advance in energy producers after Alberta unveiled a revamped climate change policy and Saudi Arabia said it’s ready to work to stabilize global oil markets.

     Equities fell 0.4 percent in afternoon trading, erasing an advance of as much as 0.6 percent in the morning. Valeant lost 3.4 percent, reversing an earlier 7.7 percent rally and snapping a three-day advance. The embattled drugmaker has tumbled 66 percent from an Aug. 5 record amid scrutiny over its pricing practices.

     The Standard & Poor’s/TSX Composite Index fell 51.11 points to 13,382.38 at 4 p.m. in Toronto. The S&P/TSX added 2.7 percent last week, the most since Oct. 9. The index has pared declines for the year to 8.5 percent, trailed only by Singapore and Greece among developed markets. 

     Royal Bank of Canada and Bank of Nova Scotia slipped at least 0.7 percent to lead lenders lower. Industrial shares dropped 1 percent as a group, as Canadian Pacific Railway Ltd. lost 1.1 percent to snap a five-day gain. Canadian Pacific jumped 9.8 percent last week after going public with its pursuit of Norfolk Southern Corp.

     Alberta provided greater clarity for energy companies operating in the province, saying it will cap oil-sands emissions for producers such as Suncor Energy Inc. and Imperial Oil Ltd., implement an economy-wide price for carbon and phase out coal power plants.

     TransAlta Corp., an electricity generator in Calgary, soared 9.5 percent for the biggest advance in two years. Analysts at RBC Capital raised the stock to “sector perform,” the equivalent of a neutral rating, in part due to clarity from the release of Alberta’s climate change framework.

     “It is now certain that coal-fired generation will be phased out by 2030,” TransAlta Chief Executive Dawn Farrell said in a statement Nov. 22. The company is reviewing the new policy to assess how it will impact TransAlta’s business and strategy, the release said.

     West Texas Intermediate traded near $42 a barrel after Saudi Arabia repeated that it’s willing to work with OPEC and other producers. The Organization of Petroleum Exporting Countries is due to meet Dec. 4. Oil has slumped about 45 percent over the past year.

     Energy and raw-materials producers, along with health-care stocks, have dropped at least 21 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.

     First Quantum Minerals Ltd. sank 5.8 percent. Copper fell below $4,500 a metric ton for the first time in six years and nickel touched the lowest in more than a decade.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks slipped following the Standard & Poor’s 500 Index’s best weekly rally this year, as gains in consumer companies were overshadowed by a retreat in Allergan Plc and Pfizer Inc. amid their record $160 billion merger deal.

     Allergan and Pfizer slipped more than 2.6 percent. Electronic Arts Inc. fell 4.8 percent as GameStop Inc. said sales of the video-game maker’s Star Wars: Battlefront were weaker than expected. Tyson Foods Inc. gained 10 percent after boosting its dividend and its profit outlook was better than some analysts expected. Kellogg Co. rallied the most in almost a year after an analyst upgrade.

     The S&P 500 fell 0.1 percent to 2,086.59 at 4 p.m. in New York, after rising 3.3 percent last week, the most since December. The Dow Jones Industrial Average lost 31.13 points, or 0.2 percent, to 17,792.68. The Nasdaq Composite Index declined 0.1 percent. The Russell 2000 Index increased 0.4 percent, bolstered by gains in health-care and consumer discretionary shares. About 6.2 billion shares traded hands on U.S. exchanges 17 percent below the three-month average.

     “There are more reasons than usual to sit on your hands during Thanksgiving week,” said Matt Maley, an equity strategist at Miller Tabak & Co LLC in New York. “It’s a combination of a lack of positive reaction in the oil market to help oil rally and concerns a little bit about Brussels. With stuff going on in Europe, people are asking, ‘Do I really need to step to the plate after a 3 percent rally last week?’”

     Stocks earlier extended declines as concerns over terrorism intensified after AFP reported an explosive belt was found in a trash bin in a Paris suburb. The search for a key suspect in the Paris terror attacks kept Brussels in an unprecedented lockdown that brought business to a standstill.

     The main U.S. equity gauge surged last week after Federal Reserve officials signaled the economy is strong enough to withstand the first rate increase since 2006, and investors grew more comfortable with the notion that borrowing costs may soon be higher. Stocks have gained in seven of the past eight weeks, boosted by raw-material, industrial and technology shares, taking the S&P 500 to within 2 percent of a record set in May.

     San Francisco Fed President John Williams said on Saturday there’s a “strong case” for a rate increase in December assuming U.S. economic data continues to be encouraging. Fed Governor Daniel Tarullo said today in an interview on Bloomberg Television economic data received since the central bank met in September had been mixed, as continued low inflation tempered his enthusiasm over progress made this year in lowering unemployment.

     “As always with the Fed, we see Fed governors speak on both sides,” said Tim Ghriskey, who helps oversee $1.5 billion as managing director and chief investment officer at Solaris Asset Management. “It’s a way for them to calm the markets and get the markets used to any potential outcome. Eventually the Fed’s going to raise and it’s very likely to be somewhere in the near- term.”

     A report today showed sales of previously owned homes retreated in October from the second-highest level since 2007 as lean inventory limited momentum in residential real estate. Recent data have bolstered the case for raising borrowing costs for the first time since 2006, with traders now pricing in a 72 percent probability that the Fed will move next month. The Commerce Department’s second reading on gross domestic product for the third quarter is due tomorrow.

     The earnings season is drawing to a close, with almost all companies in the S&P 500 having reported. Of those, 75 percent beat earnings estimates, while only 44 percent exceeded sales forecasts. Analysts project profits for index members dropped 3.8 percent in the third quarter, compared with for a 7.2 percent decline at the start of the season.

     Six of the S&P 500’s 10 main industries declined Monday, led by utilities, phone and technology companies. Consumer- staples and commodity shares rose the most. The Chicago Board Options Exchange Volatility Index climbed 1 percent to 15.62. The measure of market turbulence know as the VIX slid 23 percent last week, the most since July.

     Technology shares were the biggest drag on the S&P 500. Hewlett-Packard Enterprises Co., the corporate technology business recently separated from the printer and PC operation that’s now HP Inc., fell 2.5 percent following a 7.3 percent jump over the three previous sessions. Maxim Group started coverage of the company today with a hold rating. Hewlett- Packard and HP report results tomorrow after the market closes.

     Apple Inc. sank 1.3 percent, its first drop in four days. Video-game maker Electronic Arts Inc. fell 4.8 percent, as demand for “Star Wars Battlefront” fell short of expectations. Analog Devices Inc. slumped 4.4 percent, leading semiconductors lower before its quarterly earnings report tomorrow morning.

     GameStop Corp. slid 4.2 percent, after falling more than 15 percent earlier. The company reported third-quarter earnings and sales Monday that missed analysts estimates.

     Transportation stocks fell, with the Dow Jones Transportation Average declining for the first time in six days, down 0.9 percent. A group of railroad companies tumbled 2.1 percent, the most in almost a month, with all four members slipping more than 1.8 percent.

     Raw-material stocks rose today, led by a 4.4 percent rally in Alcoa Inc. Billionaire Paul Singer’s Elliott Management Corp. announced it bought a stake in the largest U.S. aluminum producer, an endorsement of Alcoa’s plans to split into two companies. CF Industries Holdings Inc. gained 2.5 percent after the company said it’s committed to acquiring fertilizer assets from OCI NV.

     Tyson Foods’ surge led the 0.8 percent gain for consumer- staples shares. Kellogg Co. jumped 3.5 percent, the most in almost a year, after Credit Suisse Group AG raised its recommendation to outperform from neutral. Constellation Brands Inc. and Archer-Daniels-Midland Co. also advanced more than 2.4 percent.

     Energy stocks advanced as oil prices swung between gains and losses. Cimarex Energy Co., Tesoro Corp. and Anadarko Petroleum Corp. rose at least 2.7 percent, while Chevron Corp. added 1.1 percent. The group is rebounding after a two-day, 2.3 percent retreat. Oil fluctuated on Saudi Arabia’s repeated pledge to work with OPEC and other producers to stabilize global crude markets. The December crude futures contract expired Friday after falling to the lowest since Aug. 26.

     Retailers in the benchmark increased for the fifth time in six days, extending gains after their best weekly climb in almost four years. Macy’s Inc. and Nordstrom Inc., which earlier this month had their worst weekly selloffs since 2008, rose more than 1.4 percent. Amazon.com Inc. added 1.6 percent to close at an all-time high.

     Biotechnology companies rose amid Allergan’s combination with Pfizer. Biogen Inc. and Amgen Inc. climbed more than 1.4 percent to lead the Nasdaq Biotechnology Index’s 0.7 percent increase, with the gauge rising for the first time in three sessions. Mallinckrodt Plc surged 8.4 percent after posting earnings that topped estimates.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Meditate.
Live purely. Be quiet.
Do your work with mastery.
Like the moon, come out 
from behind the clouds!
Shine” 
― Gautama Buddha

 

As ever,

 

Karen
 

“The past is behind, learn from it. The future is ahead, prepare for it. The present is here, live it.”  ― Thomas S. Monson

 

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

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:

   A philosophy professor stood before his class and had some items in front of him.  When class began, wordlessly he picked up a large empty mayonnaise jar and proceeded to fill it with rocks right to the top, rocks about 2” in diameter.  He then asked the students if the jar was full.  They agreed that it was.

   So the professor then picked up a box of pebbles and pored them into the jar.  He shook the jar lightly.  The pebbles, of course, rolled into the open areas between the rocks.  The students laughed.  He asked his students again if the jar was full.  They agreed that yes, it was.  The professor then picked up a box of sand and poured it into the jar.  Of course, the sand filled up everything else.  “Now,” said the professor, “I want you to recognize that this is your life.  The rocks are the important things – your family, your partner, your health, your children – anyone and anything that is so important to you that if lost, you would be nearly destroyed.  The pebbles are the other things in life that matter, but on a smaller scale.  The pebbles represent things liked your job, your house, your car.  The sand is everything else.  The small stuff.  If you put the sand or the pebbles in the jar first, there is no room for the rocks.

  The same goes for your life.  If you spend all your energy and time on the small stuff, material things, you will never have room for the things that are truly most important….Take care of the rocks first – the things that really matter.  Set your priorities.  The rest is just pebbles and sand.”

On this day in 1945, the Nuremberg Trials began in Germany with 24 high-ranking Nazis going to court for atrocities committed during World War II.

Bobby Kennedy was born on this day in 1925.

Sunday is the anniversary of his brother, John F. Kennedy’s assassination.

Venus crosses the star-rich area of Sagittarius this weekend. 

Education is a companion which no misfortune can depress, no crime destroy, no enemy alienate, no despotism enslave.  At home, a friend; abroad, an introduction; in solitude, a solace; and in society, an ornament.  Without it, what is man?  A splendid slave, a reasoning savage.  –Charles Varle.

I smiled when I saw the photo below taken today at the Pushkar Fair in Rajastan.   How the smart phone has changed the world!  Gary and I went to the Pushkar Fair on one of our trips to India only a few years ago and there was not even wireless service then in that remote part of India where the fair is held, let alone camel herders with smart phones.  Amazing…

PHOTOS OF THE DAY

An Indian camel herder takes pictures of hot air balloons flying over the fair grounds early morning at the annual cattle fair in Pushkar, in the western Indian state of Rajasthan, Friday. Pushkar is a popular Hindu pilgrimage spot that is also frequented by foreign tourists who come to the town for its annual cattle fair. Deepak Sharma/AP

Hundreds of beachgoers crowd Sydney’s Bondi Beach on Friday, during a heatwave that hit Australia’s largest city. Jason Reed/Reuters

Market Closes for November 20^th, 2015

Market Index	Close	Change
Dow Jones	17823.81	+91.06   +0.51%
S&P 500	2088.17	+6.93   +0.33%
NASDAQ	5104.918	+31.279   +0.62%
TSX	13426.97	-46.86
		-0.35%

International Markets

Market Index	Close	Change
NIKKEI	19879.81	+20.00
		+0.10%
HANG SENG	22754.72	+254.50
		+1.13%
SENSEX	25868.49	+26.57
		+0.10%
FTSE 100	6334.63	+4.70
		+0.07%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.622	1.622
CND. 30 Year Bond	2.327	2.323
U.S.    10 Year Bond	2.2605	2.2430
U.S. 30 Year Bond	3.0175	3.0032

Currencies

BOC Close	Today	Previous
Canadian $	0.74902	0.75279
US $	1.33508	1.32839
Euro Rate 1 Euro=		Inverse
Canadian $	1.42144	0.70351
US $	1.06469	0.93924

Commodities

Gold	Close	Previous
London Gold Fix	1081.75	1082.60
Oil	Close	Previous
WTI Crude Future	40.39	40.54

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, as a two-day advance fizzled amid renewed selling in miners, paring the benchmark index’s best weekly gain since early October.

     Financial services companies advanced this week amid the prospect of additional stimulus in Europe and gradual interest rate increases in the U.S., joining a rally in global markets. Health-care shares bolstered the Canadian market in the week, as Valeant Pharmaceuticals International Inc. surged 21 percent in five days for its biggest surge in four years. Commodity producers have lagged, as oil hovers near $40 a barrel and industrial metals trade at multiyear lows.

     The Standard & Poor’s/TSX Composite Index fell 40.34 points, or 0.3 percent, to 13,433.49 at 4 p.m. in Toronto. The S&P/TSX has added 2.7 percent this week, the most since Oct. 9. That pared declines for the year to 8.2 percent, trailed only by Singapore and Greece among developed markets. 

     The benchmark’s heavy weighting toward commodity shares has kept its gains in check during the latest week. Energy and raw- materials producers retreated at least 1.7 percent Friday, as oil capped a third weekly loss. Crude dipped below $40 a barrel in New York Wednesday for the first time since August. Gold traded near a five-year low as the price posted a fifth straight weekly retreat, the longest slide since July.

     The S&P/TSX Financials Index ended Friday little-changed, rallying 2.8 percent this week. Scotiabank and Bank of Montreal kick off fiscal fourth-quarter results for the big banks Dec. 1.

     Lenders got a boost from diverging monetary policy in Europe and the U.S. The European Central Bank said it will do what’s necessary to reach its inflation goal rapidly. American equities rose as investors are getting more comfortable with the idea the Federal Reserve will raise interest rates gradually as the economy warrants.

     Valeant jumped 8.3 percent to a two-week high, as the embattled drugmaker has advanced for three straight days. The company will be hosting an investor day Dec. 16, providing updated guidance, discussing certain business operations and highlighting certain research and development programs. Concordia Healthcare Corp., a smaller Canadian peer, added 3.8 percent to extend a six-week high.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks advanced, with the Standard & Poor’s 500 Index capping its best weekly gain this year, as Nike Inc. paced a rally in consumer companies andEuropean Central Bank President Mario Draghi hinted at additional stimulus.

     Equities reversed most of last week’s selloff, boosted by a snap-back among retailers in the S&P 500. The group was on track for its strongest week in four years, immediately after suffering the worst weekly drop since 2011. Ross Stores Inc. and Gap Inc. helped power the sector’s rally Friday. Nike’s 5.5 percent gain bolstered the broader consumer group on its $12 billion buyback plan and dividend increase.

     The S&P 500 added 0.4 percent to 2,089.17 at 4 p.m. in New York, after rising as much as 0.8 percent. Declines in energy and consumer staples shares whittled down earlier gains. The Dow Jones Industrial Average rose 91.06 points, or 0.5 percent, to 17,823.81, with Nike contributing about 46 points to climb. The Nasdaq Composite Index increased 0.6 percent. About 6.9 billion shares traded hands on U.S. exchanges, 8 percent below the three-month average.

     “There’s continued upward momentum in the market as people get more comfortable with the fact that rates are probably going up, and they’re only going up because the economy is strong enough to justify that,” said Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles. “I don’t think people were positioned for that coming into the week, and I think that’s why you’ve seen the market do as well as it has.”

     Ross Stores jumped 10 percent after posting better-than- estimated earnings and boosting its profit forecast. Gap rose the most since 2013, even after cutting its profit outlook. Abercrombie & Fitch Co. surged 25 percent after its results beat analysts’ expectations, and tax software maker Intuit Inc. rallied 5.9 percent on a higher revenue outlook. Energy companies fell as oil declined for as third straight week amid a global crude glut.

     The S&P 500 rose 3.3 percent this week, the most since December, as shares rebounded from the worst weekly decline in almost three months. Minutes from the Federal Reserve’s October meeting released Wednesday stressed that the pace of any interest-rate increases will be gradual, reassuring investors that higher borrowing costs won’t derail economic growth. The index has rallied 12 percent from its August trough and is 2 percent from its all-time high set in May.

     While U.S. policy makers are preparing investors for higher interest rates, the ECB’s Draghi hinted at further stimulus measures, saying today that the institution will do what’s necessary to reach its inflation goal rapidly. His comments underline a concern that the inflation rate in the euro area will slip further amid a high degree of economic slack and slumping oil prices. The central bank’s next monetary policy meeting is Dec. 3.

     Fed Bank of St. Louis President James Bullard said today investors should prepare for uncertainty on whether the Federal Open Market Committee will raise its target interest rate at each meeting next year, as the era of signaling moves is over.

     Fed Bank of New York President William C. Dudley reiterated in comments Friday that a rate decision in December will be dependent on economic data. Fed Vice Chairman Stanley Fischer said late Thursday the central bank has done its best to prepare international markets for higher rates.

     Recent data has bolstered the case for raising borrowing costs for the first time since 2006, with the latest payroll report — released after the Fed’s October meeting — showing the biggest increase in hiring this year while claims for jobless benefits hover near four-decade lows. Traders are now pricing in a 68 percent probability that the Fed will raise rates next month.

     “A rate hike has got to be the central case for December,” said Alex Scott, who helps oversee about $14 billion as Seven Investment Management’s deputy chief investment officer. “It’s important that the Fed’s language is couched in very dovish terms to offer significant reassurance to investors. The fact that we saw some very strong gains in the market just this week is a fairly good sign that markets are prepared to deal with it.”

     With the earnings season drawing to a close, profits from S&P 500 companies have fallen by about $25 billion in the first three quarters of the year, according to data compiled by Bloomberg. A sharp rally in the dollar has hit exporters while a drop in oil prices has hurt energy firms. Aggregate revenue for members in the benchmark has dropped $287 billion compared to a year ago.

     The Chicago Board Options Exchange Volatility Index fell 9 percent Friday to 15.47. The measure of market turbulence known as the VIX lost 23 percent this week after a 40 percent surge last week, which was the most since August.

     Six of the S&P 500’s 10 main industries advanced, with health-care, consumer discretionary and technology stocks leading the gains. Energy, consumer staples and phone companies fell the most.                       

     Consumer discretionary stocks climbed 1.2 percent, rising for a fifth consecutive day. Ross Stores, Gap Inc. and Nike each added more than 5.4 percent. An exchange-traded fund of retail stocks rose 2 percent, the most in three weeks.

     Health-care stocks climbed 0.7 percent, led by Aetna Inc. and Allergan Plc. Aetna surged 4.5 percent, the most since April 2014, after the company reaffirmed its forecast for 2015 earnings.

     Allergan gained 3.5 percent on news that Pfizer Inc. is in advanced talks to buy the company for as much as $380 a share. Medical equipment maker C.R. Bard Inc. climbed 3 percent after agreeing to acquire Liberator Medical Holdings Inc. for about $181 million.

     Industrial stocks rose to the highest level since June, led by CSX Corp., which advanced 2.3 percent to the highest since August. An index of railroad stocks rose for the fifth consecutive day. Rockwell Collins Inc., Lockheed Martin Corp. and Raytheon Co. advanced at least 0.8 percent, with all three military hardware companies rising for a fifth day following the terrorist attacks in Paris.

     Among the worst performers in the benchmark gauge were Southwestern Energy Co. and Chesapeake Energy Corp., which fell more than 5.9 percent to levels last seen more than 10 years ago. A slump in oil prices helped drag down energy stocks for a second day. Chevron Corp. declined 2 percent to fall for the third time in four days.

     Chipotle Mexican Grill Inc. tumbled 12 percent to its lowest in almost 18 months after the Center for Disease Control said three additional states have reported people sickened with a strain of E.coli linked to the company’s restaurants.

     Akamai Technologies Inc. and Autodesk Inc. were among the biggest decliners in the S&P 500 and the worst performers among tech companies, losing more than 2.9 percent. Goldman Sachs Group Inc. cut Akamai to sell from neutral, while Autodesk was reduced to the equivalent of neutral from buy at RBC Capital Markets Corp.

 

Have a wonderful weekend everyone.

 

Be magnificent!

Watching and listening are a great art.

By watching and listening we learn infinitely more than we do from any books.

Books are necessary, but watching and listening sharpen your senses.

Krishnamurti

As ever,
 

Carolann

 

Knowledge is power.

     -Francis Bacon, 1561-1626

 

 

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

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:

THE PARADOXICAL COMMANDMENTS/KENT M. KEITH

Kent Keith wrote The Paradoxical Commandments in 1968 when he was a sophomore at Harvard as part of a handbook for high school student leaders.  They’ve appeared on the Web in various guises.   Mother Teresa put a version called Anyway on the wall of her children’s home in Calcutta.  And another version called The Final Analysis is often, wrongly attributed to Mother Teresa.  Here is the original:

1. People are illogical, unreasonable, and self-centered.
    Love them anyway.

2. If you do good, people will accuse you of selfish ulterior motives.
    Do good anyway.

3. If you are successful, you win false friends and true enemies.
    Succeed anyway.

4. The good you do today will be forgotten tomorrow.
    Do good anyway.

5. Honesty and frankness make you vulnerable.
    Be honest and frank anyway.

6. The biggest men and women with the biggest ideas can be shot down by the smallest men and women with the smallest minds.
    Think big anyway.

7. People favor underdogs but follow only top dogs.
    Fight for a few underdogs anyway.

8. What you spend years building may be destroyed overnight.
    Build anyway.

9. People really need help but may attack you if you do help them.
    Help people anyway.

10. Give the world the best you have and you’ll get kicked in the teeth.
     Give the world the best you have anyway.
 

On this day in 1975, “One Flew Over the Cuckoo’s Nest,” a movie based on Ken Kesey’s 1962 novel of the same name, debuted in theaters.

PHOTOS OF THE DAY

Jing Li wears a Tibetan traditional costume as she gets ready for her wedding photo to be taken at the Nianqing Tanggula mountain pass in the Tibet Autonomous Region, China on Wednesday. Jing, and her husband Ke Xu, both from Shiyan in northwestern Hubei province, have lived in Tibet for three years. The couple married last month. Damir Sagolj/Reuters

A youth lights firecrackers while celebrating the Hindu religious festival of Chatt Puja in Agartala, India. During this festival, Hindu women fast for the whole day for the betterment of their families and society. Jayanta Dey/Reuters

Market Closes for November 19^th, 2015

Market Index	Close	Change
Dow Jones	17732.75	-4.41   -0.02%
S&P 500	2081.59	-1.99   -0.10%
NASDAQ	5073.641	-1.562   -0.03%
TSX	13473.85	+73.88
		+0.55%

International Markets

Market Index	Close	Change
NIKKEI	19859.81	+210.63
		+1.07%
HANG SENG	22500.22	+311.96
		+1.41%
SENSEX	25841.92	+359.40
		+1.41%
FTSE 100	6329.93	+50.96
		+0.81%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.622	1.651
CND. 30 Year Bond	2.323	2.354
U.S.    10 Year Bond	2.2430	2.2728
U.S. 30 Year Bond	3.0032	3.0431

Currencies

BOC Close	Today	Previous
Canadian $	0.75279	0.75159
US $	1.32839	1.33051
Euro Rate 1 Euro=		Inverse
Canadian $	1.42594	0.70129
US $	1.07344	0.93159

Commodities

Gold	Close	Previous
London Gold Fix	1082.60	1067.75
Oil	Close	Previous
WTI Crude Future	40.54	40.75

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day as Valeant Pharmaceuticals International Inc. advanced the most in four years and gold prices rebounded from a five-year low, offsetting a decline in energy shares.

     Raw-materials producers jumped 1.2 percent to lead equities higher. Gold futures rose the most in three weeks as a measure of the dollar retreated from the highest in at least a decade. While there is now a 66 percent chance U.S. Federal Reserve policy makers will raise interest rates at their December meeting, the pace of subsequent increases would be slow, according to minutes of their last meeting released Wednesday.

     The Standard & Poor’s/TSX Composite Index rose 73.86 points, or 0.6 percent, to 13,473.83 at 4 p.m. in Toronto. The S&P/TSX has declined 7.9 percent this year, trailed only by Singapore and Greece among developed markets.

     Canadian equities have faltered this year amid declines in commodity and health-care stocks of at least 20 percent. The country’s equity market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest- rate increase from the Federal Reserve.

     Bombardier Inc. ended the day little changed, after gaining as much as 14 percent and losing 6.3 percent. The company agreed to sell a 30 percent stake in its rail business to Caisse de Depot & Placement du Quebec for $1.5 billion, shelving a public stock sale following a strategic review. The deal marks the manufacturer’s second financial injection from within the province in less than a month, after the provincial government invested $1 billion in the C Series jetliner program.

     Montreal-based Bombardier has plummeted 69 percent this year, the worst-performing Canadian industrial stock, as the company’s long-gestating C Series has faced repeated delays and cost overruns. The program’s targeted 2016 debut is now more than two years behind schedule, while Bombardier has also had to cancel one business jet, the Learjet 85, and postpone the debut of another.

     Energy shares dropped 1.3 percent as oil fell to the lowest level in almost three months. Government data showed U.S. crude stockpiles rose to the highest for this time of year since 1930.

     Barrick Gold Corp. added 4.3 percent and First Majestic Silver Corp. increased 8.9 percent as gold rebounded from a five-year low and silver snapped 15 days of losses. Bullion is headed for a third annual loss on expectations that U.S. growth will spur the Fed to increase borrowing costs, curbing appeal of the metal as a haven investment.

     Lucara Diamond Corp. soared 30 percent, the most since December 2008, after discovering a 1,111 carat gem-quality diamond in Botswana. The diamond, just smaller than a tennis ball, is second in size only to the Cullinan diamond cut into the British Crown jewels.

     Valeant jumped 15 percent, the most since January 2011. Citi Research Credit analyst Murali Ganti initiated coverage on the drugmaker with a new overweight rating, writing investor reaction to Valeant has been “largely overdone” with much of the bad news priced in.

     Valeant, briefly the largest stock in Canada by market capitalization this year, has lost 68 percent from an Aug. 5 high amid pressure over how it prices its drugs. Concordia Healthcare Corp., which has dropped 54 percent since Sept. 4, surged 7.2 percent to extend a five-week high.

US

By Dani Burger

     (Bloomberg) — U.S. stocks struggled to add to the biggest rally in nearly a month, as a profit warning from UnitedHealth Group Inc. jolted the health-care sector while energy producers followed oil lower a day after the Federal Reserve eased concern that higher interest rates would derail economic growth.

     UnitedHealth Group slumped 5.7 percent after saying it may pull out of the Obamacare insurance exchange market amid high costs. Competitors Anthem Inc. and Aetna Inc. fell more than 6.5 percent. Consumer staples and technology shares countered with gains as Keurig Green Mountain Inc. jumped 18 percent on better- than-expected results, while Salesforce.com Inc. and Intel Corp. rallied on a stronger-than-estimated sales outlooks.

     The Standard & Poor’s 500 Index slipped 0.1 percent to 2,081.24 at 4 p.m. in New York, with the gauge trading in its tightest intraday range since May 22. The Dow Jones Industrial Average lose 4.41 points to 17,732.75, and the Nasdaq Composite Index declined less than 0.1 percent. About 6.5 billion shares traded hands on U.S. exchanges, 13 percent below the three-month average.

     “The market probably needs to move sideways here for a while,” David Spika, global investment strategist for GuideStone Capital Management, said by phone. “The way we rebounded from the correction was very rapid. There are more reasons to go down than up.”

     Minutes from the Federal Reserve’s October meeting released Wednesday indicated that policy makers believe the economy is strong enough to withstand higher rates as early as next month, while stressing that the pace of any tightening will be gradual. That message yesterday helped unleash a rally that sent the S&P 500 to within 2.3 percent of its May all-time high.

     The gauge is up about 11 percent from the bottom of a summer selloff sparked by worries that a slowdown in China’s economy would spread. Caution over the impact of China’s weakness kept the Fed from raising rates in September.

     Recent data has bolstered the case for raising borrowing costs for the first time since 2006, with the latest payroll report — released after the Fed’s October meeting — showing the biggest increase in hiring this year. A report today showed initial jobless claims continued to hover around four-decade lows as the labor market strengthens toward full employment.

     The Philadelphia Fed’s monthly business outlook unexpectedly rose in November, while an October index of leading economic indicators gained for the first time since June. Traders are now pricing in a 68 percent probability that the Fed will raise rates next month.

     The earnings season is drawing to a close, with 95 percent of S&P 500 companies having reported. Of those, 74 percent beat earnings estimates, while 44 percent exceeded sales forecasts. Analysts project profits for index members dropped 3.7 percent in the third quarter, compared with for a 7.2 percent decline at the start of the season.

     The Chicago Board Options Exchange Volatility Index rose 0.8 percent Thursday to 16.99, after sliding the most in nearly four weeks yesterday. The measure of market turbulence known as the VIX is up about 13 percent this month after posting its biggest monthly drop ever in October.

     Seven of the S&P 500’s 10 main groups advanced, with technology, utilities and phone companies rising the most. Health-care companies fell 1.6 percent, and energy retreated along with oil prices.

     Salesforce.com rallied to a record after forecasting stronger-than-estimated sales in its approaching fiscal year, demonstrating growing demand for cloud-based software. Also boosting the tech group, Intel surged 3.4 percent after saying 2016 sales will climb in the “mid single-digit” percent range, making the case that it doesn’t need a buoyant personal-computer market to achieve growth. Analysts had estimated growth of about 4 percent. Apple Inc. gained 1.3 percent, rising for the third time in four days.

     Joining Keurig Green Mountain at the top of the consumer staples group, J.M. Smucker Co. jumped 7 percent to a record. The food maker’s quarterly profit beat estimates, helped by demand for coffee products including its new Dunkin’ Donuts- branded pods. Coca-Cola Co., Keurig Green Mountain’s largest shareholder with a 17 percent stake, added 2 percent, the most in four weeks.

     Amid the dollar’s biggest slide in a month, companies that benefit from a weaker U.S. currency gained. Kraft Heinz Co., Campbell Soup Co. and Philip Morris International Inc. each increased at least 0.8 percent.

     Square Inc. and Match Group Inc. jumped in their first day of trading, after pricing initial public offerings low enough to entice investors rattled by choppy markets, as well as bulls confident in their growth prospects. Square surged 45 percent, while Match advanced 23 percent.

     Shares of embattled drugmakerValeant Pharmaceuticals International Inc.rose 16 percent, the most since 2011. Citigroup Global Markets credit analyst Murali Ganti said in a note to clients that investors’ concerns over the company’s pricing practices and business model were “overdone.”

     UnitedHealth posted its biggest drop since 2011, sparking a selloff among health insurers after announcing it’s scaling back marketing efforts for plans it’s selling this year under the Affordable Care Act, and may quit the business entirely in 2017 because of high costs. The company also cut its 2015 earnings forecast. Hospital operators Tenet Healthcare Corp. and HCA Holdings Inc. fell more than 6.9 percent.

     Pfizer Inc. and Allergan Plc. declined at least 2.8 percent amid plans by the U.S. Treasury Department to deter companies from doing deals to move their headquarters abroad for tax purposes. People familiar with the matter said Pfizer is in advanced talks to buy the Ireland-based drugmaker for as much as the $380 a share, or $150 billion, a deal that would be the largest ever for the drug industry.

     Energy companies in the benchmark sank 1.3 percent, nearly erasing a 1.6 percent rally yesterday as the group continued to swing with seesawing crude prices. Oil slid to its lowest in almost three months amid signs of ample supplies, and labored to hold above $40 a barrel. Chevron Corp. declined 1.5 percent. Chesapeake Energy Corp. dropped 10 percent to a 13-year low, while Southwestern Energy Co. and Consol Energy Inc. lost more than 5.6 percent.

     Six S&P 500 companies, including Gap Inc., release quarterly results today. The earnings season is drawing to a close, with 95 percent of companies in the benchmark having reported. Of those, 74 percent beat earnings estimates, while 44 percent exceeded sales forecasts. Analysts project profits for index members dropped 3.7 percent in the third quarter, compared with for a 7.2 percent decline at the start of the season.

 

Have a wonderful evening everyone.

 

Be magnificent!

To conquer the subtle passions

seems to me to be far harder than the

physical conquest of the world by the force of arms.

Mahatma Gandhi

As ever,

 

Carolann

 

You make mistakes.  Mistakes don’t make you.

                          -Maxwell Maltz, 1889-1975

 

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

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:

Good News This Week:

US – A major multinational company eyes wind power for a manufacturing division.  Proctor & Gamble announced that the plants for its fabric and home-care divisions will draw electricity generated by a wind farm in Cooke County, Texas, by December 2016.  It has pledged to have 30 % of energy generated by renewable and to cut emissions by 30 % by 2020.  –The NY Times.

Dublin, Ireland – Modular houses for the homeless should be in place before Christmas, with 22 government-funded units planned and another 128 being fast-tracked to follow.  Placement – and permanence – are still being debated.  The number of homeless families has doubled in the past year, by some accounts. –The Journal.IE.

London – Those iconic black cabs will be going green.  A new plug-in hybrid London taxi, developed by the Chinese auto firm Geely, should be on the road in 2017.  That’s ahead of regulations that will take effect in January 2018 requiring that all new taxis and private-hire vehicles in the city be able to run with zero emissions for at least 30 miles.  –The Guardian.

Chile – a new marine conservation park, one of the world’s largest, was announced.  The area will include Easter Island, or Rapa Nui, some 2,300 miles west of Chile’s capital, Santiago.  The Rapa Nui people have long petitioned Chile’s government to curb overfishing of species such as tuna.  A second park will include other islands where fishing disputes have occurred.  Together more than 386,000 square miles will be protected.  Globally, plans to protect more than 1 million square miles of ocean were announced in 2015 alone.  –Reuters, The Washington Post.

Worldwide – Maternal deaths declined by 45% between 1990 and 2013, the United nations notes.  (That’s the death of a woman while pregnant or within 42 days after the end of pregnancy).  A new report underscores the persistence of discrimination and violence against women but also notes key gains:  Women continue to marry a few years earlier than men, the report found.  But “women’s age at marriage has also increased, reflecting higher education levels, later enry into the labor force, as well as increased economic independence.” –United Nations.

PHOTOS OF THE DAY

A monkey is reflected on a pond while drinking water at Swayambhunath stupa, also know as Monkey Temple, in Kathmandu, Nepal. The letters in the background reads, ‘May peace prevail on earth’. Navesh Chitrakar/Reuters

Waves and high winds hit the sea wall and light beacon at Newhaven in south England, Britain, Wednesday. Toby Melville/Reuters

Market Closes for November 18^th, 2015

Market Index	Close	Change
Dow Jones	17737.16	+247.66   +1.42%
S&P 500	2083.58	+33.14   +1.62%
NASDAQ	5075.203	+89.188   +1.79%
TSX	13399.97	+119.58
		+0.90%

International Markets

Market Index	Close	Change
NIKKEI	19649.18	+18.55
		+0.09%
HANG SENG	22188.26	-75.99
		-0.34%
SENSEX	25482.52	-381.95
		-1.48%
FTSE 100	6278.97	+10.21
		+0.16%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.651	1.658
CND. 30 Year Bond	2.354	2.349
U.S.    10 Year Bond	2.2728	2.2658
U.S. 30 Year Bond	3.0431	3.0527

Currencies

BOC Close	Today	Previous
Canadian $	0.75159	0.75092
US $	1.33051	1.33169
Euro Rate 1 Euro=		Inverse
Canadian $	1.41845	0.70500
US $	1.06609	0.93801

Commodities

Gold	Close	Previous
London Gold Fix	1067.75	1079.20
Oil	Close	Previous
WTI Crude Future	40.75	40.94

The political problem of mankind is to combine three things: economic efficiency, social justice, and individual liberty. –John Maynard Keynes, 1883-1946.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose as Canadian Pacific Railway Ltd. rallied on merger prospects and Valeant Pharmaceuticals International Inc. rebounded from a two-year low.

     Canadian Pacific surged 5.6 percent to a three-week high as the railroad operator went public with its pursuit of Norfolk Southern Corp., wooing the U.S. company’s shareholders with an offer of about $28 billion that would create a transcontinental railroad. Raw-materials and energy producers advanced as oil recovered after briefly dipping below $40 a barrel in New York for the first time since August.

     The Standard & Poor’s/TSX Composite Index rose 119.58 points, or 0.9 percent, to 13,399.97 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has alternated between gains and losses for three days. It fell yesterday after snapping the longest losing streak in more than a decade Monday. The S&P/TSX has declined 8.4 percent this year, trailed only by Singapore and Greece among developed markets.

     Canadian equities have faltered this year amid declines in commodity and health-care stocks of at least 19 percent. The country’s equity market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest- rate increase from the Federal Reserve.

     Federal Reserve policy makers inserted language into their October statement to stress the potential for a December rate liftoff and largely agreed that the pace of increases would be gradual, according to minutes of the FOMC’s Oct. 27-28 meeting released Wednesday.

     Fed official Dennis Lockhart earlier said while he’s comfortable with higher rates this year, additional hikes will be slow and shallow. Investors are searching for clues to the Fed’s strategy for increasing interest rates, with the probability of a rate hike in December now at 66 percent.

     Valeant Pharmaceuticals jumped 3.6 percent, rebounding from the lowest since July 2013. Valeant, briefly the largest stock in Canada by market capitalization this year, has lost 72 percent from an Aug. 5 high amid pressure over how it prices its drugs. Concordia Healthcare Corp., which has dropped 57 percent since Sept. 4, surged 8.9 percent to a five-week high today.

     Teck Resources Ltd. added 1 percent after the diversified miner lowered its 2016 spending plan by C$650 million and said it will eliminate a further 1,000 jobs, including senior management positions. The latest cuts raise the total to about 2,000 in the past 18 months. The decision is a “major positive” for shares and should ease concerns about cash flow generation, according to a report from FBR Capital Markets analyst Lucas Pipes.

US

By Dani Burger and Oliver Renick

     (Bloomberg) — U.S. stocks rallied the most in almost a month as Federal Reserve meeting minutes signaled policy makers think the economy is strengthening enough to withstand higher interest rates as soon as next month, while stressing the pace of any increases will be gradual.

     Gains among banks and biotechnology companies led a rally as eight of the S&P 500’s 10 main industries rose more than 1.2 percent. A cluster of deal activity ranging from railroads to food manufacturers also helped lift equities Wednesday.

     The S&P 500 added 1.6 percent to 2,083.58 at 4 p.m. in New York, rising the most since Oct. 22. The Dow Jones Industrial Average climbed 247.66 points, or 1.4 percent, to 17,737.16. The Nasdaq Composite Index gained 1.8 percent. About 7.2 billion shares traded hands on U.S. exchanges, 3.9 percent below the three-month average.

     “Now the question is going to be what it should have been along — not when, but how far and how fast,” said John Canally, chief economic strategist at LPL Financial Corp. in Boston. “They’ve been trying to communicate not just that the Fed is going to hike in December, but that the dot plots path will be lowered, and that’s a good outcome for the market.”

     Fed officials inserted language into their October statement to stress that “it may well become appropriate” to raise the benchmark lending rate in December and largely agreed that the pace of increases would be gradual, minutes of the meeting showed. A majority of Fed officials have signaled they expect to raise interest rates this year for the first time since 2006.

     Equities rallied ahead of the minutes as policy makers earlier signaled confidence in the economy and stuck to the message that rate increases will not be hurried. The S&P 500 had fallen as much as 4 percent after Fed Chair Janet Yellen earlier this month reminded investors that raising rates in December was a “live possibility,” and jobs data showed the biggest increase in hiring this year. The gauge has since pared its drop since Yellen’s comments to a 1.2 percent decline.

     Federal Reserve Bank of Atlanta President Dennis Lockhart said today he’s comfortable with raising rates soon, and the path of increases will be shallow and slower than in the past. His remarks came during a panel at a Clearing House event in New York. Traders are pricing in a 66 percent probability of a move — odds that shot up after a stronger-than-expected October jobs report on Nov. 6.

     As policy makers assess the strength of the economy, data today showed new-home building declined more than projected in October, led by a slump in apartment construction. On the positive side, construction permits for single-family homes increased the most since 2007, indicating ground-breaking will rebound in coming months.

     “It’s the pace and the duration now that’s the topic of conversation as opposed to when liftoff will take place,” Kevin Mahn, president of Parsippany, New Jersey-based Hennion & Walsh Asset Management Inc., said in phone interview. “The next thing the bull market needs is reassurance from the Fed that the economy is on stable ground, and that will come in the form of a rate hike.”

     The Chicago Board Options Exchange Volatility Index fell 11 percent Wednesday to 16.85, the most since Oct. 22. The measure of market turbulence known as the VIX has rebounded about 12 percent in November after posting its biggest monthly drop ever in October.

     Among companies moving on corporate news, Apple Inc. climbed 3.2 percent after Goldman Sachs Group Inc. added the shares to its “conviction buy” list. Norfolk Southern Corp. gained 6.4 percent as Canadian Pacific Railway Ltd. pursues a merger with the railroad. Fairchild Semiconductor International Inc. rallied 8.5 percent after ON Semiconductor Corp. agreed to buy it for $2.4 billion. ConAgra Foods Inc. advanced 4 percent amid a plan to spin off its Lamb Weston food-service business.

     All of the S&P 500’s 10 main industries advanced, with health-care and financial shares the best performers, up more than 1.8 percent. Utilities and phone companies were the only groups rising less than 1 percent after erasing earlier declines.

     The Nasdaq Biotechnology Index climbed 2.9 percent to rise for a fourth day. Gilead Sciences Inc., Biogen Inc. and Celgene Corp. each added more than 3.4 percent. Allergan Plc led the S&P 500’s broader health-care group, advancing 4.5 percent.

     A rally in banks bolstered the financial group. Citigroup Inc. and Bank of America Corp. increased more than 2.4 percent, while the KBW Bank Index gained 2.1 percent as all 24 of its members rose.

     The benchmark’s technology sector climbed 1.6 percent, with another acquisition in the semiconductor group adding to the more than $90 billion of global chip deals in the past year. Fairchild Semiconductor rose to its highest price in more than five months. PMC-Sierra Inc. gained 1.9 percent after Microsemi Corp. raised its offer in a deal valued at $2.3 billion. Fairchild suitor ON Semiconductor dropped 7.9 percent, while Microsemi advanced 0.7 percent.                        

     Apple’s climb helped boost the sector’s performance. The tech giant is transitioning to an “Apple-as-a-service business model” to ease its dependence on selling hardware, according to Goldman analyst Simona Jankowski. Apple, the best performer in the Dow, rose the most in three weeks.

     The Nasdaq Internet Index increased 2 percent for its best session in more than three weeks. TripAdvisor Inc. surged 7.1 percent to pace the advance as travel-related companies rebounded. Amazon.com Inc. and Netflix Inc. rose more than 3 percent.

     Angie’s List Inc. jumped 9 percent to a 16 month high. The company rejected an unsolicited proposal from IAC/InteractiveCorp Tuesday, and people familiar with the matter said shareholders and the board need to review new Chief Executive OfficerScott Durchslag’s turnaround plan in the first quarter of next year before considering deals.

     The Dow Jones Transportation Average gained 1.7 percent as railroads rallied on Canadian Pacific’s interest in Norfolk Southern. Kansas City Southern and CSX Corp. advanced more than 4 percent, while Union Pacific Corp. increased 2.4 percent.

     Energy companies erased a 1.2 percent drop on Tuesday, overcoming oil’s swings between gains and losses. Consol Energy Inc., the S&P 500’s worst performer this year, jumped 7.7 percent for the index’s best climb today. Baker Hughes Inc. added 4.5 percent.

     Citrix Systems Inc. sank 10 percent, the most more than two years and the day’s worst performer in the S&P 500. The company announced on Tuesday plans to cut about 1,000 jobs as it plans to spin off its GoTo business of virtual meeting products.

     Staples Inc. and Target Corp. both sank after releasing quarterly results today. Target fell 4.3 percent to a one-year low after online sales growth slowed, underscoring the challenge of competing with Amazon. Staples Inc. lost 2.7 percent after its fourth-quarter forecast missed analyst expectations amid the impact from a stronger U.S. dollar.

     Qualcomm Inc. tumbled 9.4 percent to a four-year low after South Korea’s Fair Trade Commission accused the chipmaker of violating local competition law in the way it licenses technology to customers. Qualcomm called its practices “lawful and pro-competitive.”

     With earnings season coming to an end, 74 percent of companies in the S&P 500 that have reported results beat profit estimates, while only 44 percent exceeded sales projections. Analysts project profits for members of the benchmark dropped 3.7 percent, an improvement on a predicted 7.2 percent fall at the start of the season.
 

Have a wonderful evening everyone.

 

Be magnificent!

There will have to be rigid and iron discipline

before we achieve anything great and enduring,

and that discipline will not come by mere academic argument

and appeal to reason and logic.

Discipline is learnt in the school of adversity.

Mahatma Gandhi

As ever,

 

Carolann

 

A goal is a dream with a deadline.

          –Napoleon Hill, 1883-1970

 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in 1558, the Elizabethan Age began when Queen Mary I, the monarch of England and Ireland since 1553, died and was succeeded by her half-sister Elizabeth.

Also on this day, in 1935, Prime Minister Stanley Baldwin wrote to J.C.C. Davidson:

I feel we should not give him [Churchill] a post at this stage.  Anything he undertakes he puts his heart and soul into.  If there is going to be war – and no one can say that there is not – we must keep him fresh to be our war Prime Minister. –from The Book of Days.

PHOTOS OF THE DAY

A purebred Spanish horse is pictured during the Sicab International Pre Horse Fair which is dedicated in full and exclusively to the purebred Spanish horse in the Andalusian capital of Seville, southern Spain, Tuesday. Marcelo del Pozo/Reuters

 

Hindu devotees offer prayers standing in the waters of the Arabian Sea at sun set during Chhath Puja festival in Mumbai, India, Tuesday. On Chhath, an ancient Hindu festival, rituals are performed to thank the Sun god for sustaining life on earth. Rafiq Maqbool/AP

Market Closes for November 17^th, 2015

Market Index	Close	Change
Dow Jones	17489.50	+6.49   +0.04%
S&P 500	2050.44	-2.75   -0.13%
NASDAQ	4986.016	+1.399   +0.03%
TSX	13280.39	-37.13
		-0.28%

International Markets

Market Index	Close	Change
NIKKEI	19630.63	+263.94
		+1.22%
HANG SENG	22264.25	+253.43
		+1.15%
SENSEX	25864.47	+104.37
		+0.41%
FTSE 100	6268.76	+122.38
		+1.99%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.658	1.648
CND. 30 Year Bond	2.349	2.342
U.S.    10 Year Bond	2.2658	2.2693
U.S. 30 Year Bond	3.0527	3.0640

Currencies

BOC Close	Today	Previous
Canadian $	0.75092	0.75005
US $	1.33169	1.33324
Euro Rate 1 Euro=		Inverse
Canadian $	1.41726	0.70554
US $	1.06422	0.93965

Commodities

Gold	Close	Previous
London Gold Fix	1079.20	1084.75
Oil	Close	Previous
WTI Crude Future	40.94	41.74

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — The rally in Canadian stocks Monday was short-lived, as the selloff in equities resumed amid a slide in commodities prices.

     A day after halting the longest slide in more than a decade, Canadian equities reversed early gains to end the session lower. Raw-materials producers slumped 2.9 percent as copper touched a six-year low, while energy shares slumped 0.6 percent as oil in New York fell toward $40 a barrel.

     The Bloomberg Commodity Index, which measures a basket of resources, fell for the ninth time in 10 sessions to trade at a 1999 low. Firming inflation in the U.S. reinforced speculation the Federal Reserve will raise rates next month, boosting the dollar and damping commodities prices.

     The Standard & Poor’s/TSX Composite Index fell 37.13 points to 13,280.39 at 4 p.m. in Toronto. The benchmark Canadian equity gauge had jumped 1.9 percent yesterday to snap an eight-day losing streak, the longest since 2002, as commodities briefly rallied. The S&P/TSX has lost 9.2 percent this year, trailed only by Singapore and Greece among developed markets.

     Canadian equities have faltered amid declines in natural- resource and health-care stocks of at least 19 percent. The country’s equity market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest- rate increase from the Fed.

     Barrick Gold Corp. sank 8.7 percent and Goldcorp Inc. fell 5.2 percent to lead raw-materials producers lower. Copper is down 25 percent this year, following a 14 percent decline in 2014, as all efforts to revive metals prices from miners cutting supply to China stimulating demand have failed to halt a slide that kicked off three years ago and has since accelerated.

     Bank of Nova Scotia and Toronto-Dominion Bank added at least 0.6 percent as the nation’s largest lenders advanced a second day. The banks will report fiscal fourth quarter earnings beginning Dec. 1. Of the more than 200 companies in the S&P/TSX to report in the current period, about 60 percent missed revenue estimates, according to data compiled by Bloomberg.

     Valeant Pharmaceuticals International Inc. lost 4.3 percent, extending a two-year low. Valeant, briefly the largest stock in Canada by market capitalization this year, has lost 73 percent from an Aug. 5 high amid pressure over how it prices its drugs. 

     The embattled drugmaker’s latest product, the female libido pill Addyi, isn’t selling with only 227 prescriptions for the drug so far in its first few weeks on the market. By comparison, more than half a million men got prescriptions for Viagra in its first month on sale in 1998.

     Canadian Pacific Railway Ltd. rose 0.8 percent for a second day of gains. The railway operator disclosed after the market close it has offered a “sizable premium in cash and stock” to merge with Norfolk Southern Corp. Canadian Pacific didn’t elaborate on financial terms.

     Shopify Inc., the Ottawa-based e-commerce software company, tumbled 3.6 percent to a two-month low as the stock’s lockup for company insiders lifted. The restrictions had previously prevented the company’s venture investors and employees from selling more than 67 million shares held at Shopify’s initial public offering in May.

US

By Dani Burger

     (Bloomberg) — U.S. stocks were little changed as a retreat in energy shares offset higher-than-forecast earnings from Home Depot Inc. and Wal-Mart Stores Inc., while firming inflation bolstered speculation the Federal Reserve will raise interest rates next month.

     Crude oil renewed a selloff a day after the commodity’s climb ignited the strongest gains among energy companies in six weeks. Today’s reversal overshadowed a rally in retailers led by Home Depot after the group’s worst weekly drop in four years.

     The Standard & Poor’s 500 Index slipped 0.1 percent to 2,050.44 at 4 p.m. in New York, after erasing an earlier gain of as much as 0.7 percent. The gauge’s advance stalled at its average price during the past 200 days. The Dow Jones Industrial Average added 6.49 points to 17,489.50. The Nasdaq Composite Index was little changed. About 7.6 billion shares traded hands on U.S. exchanges, in line with the three-month average.

     “We’re coming off of a strong day yesterday,” said Alan Gayle, senior strategist for Atlanta-based RidgeWorth Investments, which oversees $40 billion. “The fact that the market is catching its breath and waffling around flat is an encouraging sign. There’s a never-ending swirl of geopolitical angst that tends to take center stage, but the big macro event that the market is focusing on is the December FOMC meeting.”

     A report today showed the cost of living excluding food and fuel rose again in October after picking up the prior month, showing inflation edging closer toward the Fed’s goal. It was the strongest back-to-back readings since May and April.

     Separate data showed factory output increased in October for the first time in three months as producers turned out more construction materials and motor vehicles. Total industrial production unexpectedly dropped for a second month as warm weather reduced electricity demand and the oil industry continued to cut back.

     Traders are now pricing in a 64 percent probability that the Fed will raise rates next month. Minutes from the Fed’s October policy meeting will be released on Wednesday.

     “There seems to be some data reassurance coming out,” said Ben Kumar, who helps oversee about $14 billion as an investment manager at Seven Investment Management in London. “In the U.S., you’ve seen sufficient data to suggest that interest rates are not going up prematurely, that the economy is strong enough to withstand a hike.”

     The S&P 500 on Monday ended a three-day losing streak that capped declines in seven of eight sessions. The benchmark closed today 3.8 percent below its record set in May after coming within 1 percent of its high on Nov. 3.

     With the earnings season drawing to an end, Staples Inc. and Gap Inc. are also among S&P 500 companies reporting results this week. Of those that have done so already, about 74 percent beat profit projections and 43 percent beat sales estimates. Analysts now project profits for index members dropped 3.7 percent in the third quarter, improved from calls for a 7.2 percent decline at the start of the season.

     The Chicago Board Options Exchange Volatility Index rose 3.7 percent Tuesday to 18.84. The measure of market turbulence known as the VIX yesterday fell the most in more than three weeks after coming off its biggest weekly increase since August.                        

     Seven of the S&P 500’s main industries declined today, with utilities and energy shares dropping the most. Health-care, consumer discretionary and phone companies advanced. A group of retailers in the index climbed 1 percent, after losing 6.6 percent last week.

     Energy companies sank 1.2 percent, reversing a portion of Monday’s 3.3 percent rally, as oil dropped in anticipation of government data forecast to show crude stockpiles expanded for an eighth week. Cabot Oil & Gas Corp. fell 6.9 percent. Chesapeake Energy Corp., Southwestern Energy Co. and Range Resources Corp. slid more than 4.6 percent.

     Dick’s Sporting Goods Inc. lost 9.4 percent, the most in 18 months after its earnings fell short of estimates and it cut its outlook. The retailer’s results helped drag supplier Under Armour Inc. down 5.6 percent to a four-month low.

     Urban Outfitters Inc. fell 3.8 percent, trimming an earlier 15 percent tumble, after reporting quarterly revenue and same- store sales that missed analysts’ forecasts. The shares have dropped 24 percent during a five-day slide.

     Among the session’s worst performers, Keurig Green Mountain Inc. retreated 9.8 percent to its lowest in more than two years ahead of its quarterly earnings report Wednesday. The coffee K- cup maker is likely to report steep sales declines in the September quarter, Susquehanna International Group LLP analyst Pablo Zuanic wrote in a note yesterday.

     Home Depot and Wal-Mart added at least 3.5 percent, with both extending a two-day climb to at least 5.1 percent. Wal-Mart had its best single day gain in two months, while Home Depot closed at a record.

     TJX Companies Inc. was also among the retailers benefiting from strong quarterly earnings. The owner of the T.J. Maxx discount retail chain gained 3.9 percent, the most in three months, after boosting its year view and reporting sales that beat the average of analyst estimates.

     Netflix Inc. rose 5.2 percent, taking its two-day gain to 13 percent after a regulatory filing Monday showed billionaire investor George Soros’ investment firm added a stake of more than 300,000 shares during the third quarter. The shares closed at a two-month high.

     The Nasdaq Biotechnology Index rallied 1.4 percent, its best performance in two weeks as biotechs helped lift the broader health-care group. Amgen Inc. and Regeneron Pharmaceuticals Inc. increased at least 2 percent. Dan Loeb, the founder of hedge fund firm Third Point, is suggesting that Allergan Plc and Amgen consider a merger, according to three people with knowledge of the matter.

     Airgas Inc. soared 29 percent to an all-time high. Air Liquide SA will acquire the company for about $13.4 billion including debt to form the world’s biggest supplier of industrial gases. The surge in Airgas wasn’t enough to keep the raw-materials group from slipping, as Freeport-McMoRan Inc. and Newmont Mining Corp. sank more than 4.2 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

All things are linked together through cause and effect.  There is no such thing as an accident.

When we cannot find the link between cause and effect in an event, we call it an accident.

Swami Prajnanpad

As ever,

 

Carolann

 

Success consists of going from failure to failure without loss of enthusiasm.

                                                            -Winston Churchill, 1874-1965

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Just back from the World Business Forum in NYC, which was truly time well spent, listening to business leaders speak of the secrets of their success and the success of the corporate cultures they nurture, thereby ensuring the success of their organizations and their team members and their shareholders.  I found Carolyn Everson, Vice President, global marketing solutions at Facebook, truly inspirational as she described the culture that she and Mark Zuckerberg and Sheryl Sandberg strive to create so that innovation, ideas, execution ensure continued success of the corporation and the individuals who make up its composition. Other speakers included Sir Richard Branson, Steve Bock, Mark Bertolini, Oscar Farinetti and many, many more. Truly inspirational.

I stayed an extra couple of days over the weekend to visit the new home of the Whitney Museum, as well as attend the theatre. The new home of the Whitney in lower Manhattan is fabulous! Floor to ceiling windows allow for amazing views of the Hudson River and lots of outdoor spaces to enjoy the same terrific views. For anyone reading this and expecting to travel to NYC soon, I can highly recommend Thérese Raquin, starring Keira Knightly, who gives a superb performance, as do the entire cast. Another lighter, fabulous play we saw is Sylvia starring Matthew Broderick. There are a lot of laughs to be had in this play about a man and his dog.

However, a somber mood was felt in many instances as artists and musicians in the city recalled the tragedy in France.  All the cast at both performances ended their performances calling on everyone to pay their respects. Masses of people gathered in Union Square to sing the French National Anthem on Saturday and lights streamed the colors of the French flag…

PHOTOS OF THE DAY

A pianist plays next to the scene of the Bataclan, in Paris, Monday. French police raided more than 150 locations overnight as authorities released the names of two more potential suicide bombers involved in the Paris attacks, one born in Syria, the other a Frenchman wanted as part of a terrorism investigation. Francois Mori/AP

Following the attacks in Paris, the blue, white and red colors of France’s national flag are projected onto the London Eye in London, Britain, Saturday. Suzanne Plunkett/Reuters

A couple stands in the rain as colors of France’s national flag are projected onto the sails of Sydney’s Opera House in Australia, following the attacks in Paris. Jason Reed/Reuters

Market Closes for November 16^th, 2015

Market Index	Close	Change
Dow Jones	17483.01	+237.77   +1.38%
S&P 500	2049.77	+26.73   +1.32%
NASDAQ	4984.617	+56.734   +1.15%
TSX	13303.87	+228.45
		+1.75%

International Markets

Market Index	Close	Change
NIKKEI	19393.69	-203.22
		-1.04%
HANG SENG	22010.82	-385.32
		-1.72%
SENSEX	25760.10	+149.57
		+0.58%
FTSE 100	6146.38	+28.10
		+0.46%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.648	1.655
CND. 30 Year Bond	2.342	2.349
U.S.    10 Year Bond	2.2693	2.2746
U.S. 30 Year Bond	3.0640	3.0568

Currencies

BOC Close	Today	Previous
Canadian $	0.75005	0.75063
US $	1.33324	1.33221
Euro Rate 1 Euro=		Inverse
Canadian $	1.42460	0.70195
US $	1.06852	0.93587

Commodities

Gold	Close	Previous
London Gold Fix	1084.75	1081.50
Oil	Close	Previous
WTI Crude Future	41.74	40.74

Market Commentary:

Money, n. –
A blessing that is of no advantage to us excepting when we part with it.  An evidence of culture and a passport to polite society. – Ambrose Bierce.

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for the first time in nine sessions, snapping the worst stretch since 2002, as commodities rallied amid heightened tension after France bombed Syria in response to terrorist attacks in Paris.

     Energy producers soared 3.8 percent, the most in six weeks, to lead a rebound in equities. Gold climbed for the first time in five days as the Paris attacks spurred haven buying, pushing raw-materials producers higher. West Texas Intermediate futures surged 2.5 percent after falling as low as $40.06 earlier.

     The Standard & Poor’s/TSX Composite Index rose 242.10 points, or 1.9 percent, to 13,317.52 at 4 p.m. in Toronto, its biggest advance since Sept. 30. The benchmark equity gauge has lost 9 percent this year, trailed only by Singapore and Greece among developed markets.

     The S&P/TSX lost 4.6 percent in the previous eight trading sessions for the longest losing streak since June 2002. Natural- resource producers slumped more than 5 percent over that period as the Bloomberg Commodity Index tracking prices from copper to crude fell to its lowest since 1999.

     Canadian equities have been among the worst-performing in the world this year, led by declines in natural-resource and health-care stocks. The country’s equity market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest-rate increase from the Federal Reserve.

     Energy producers posted a second day of gains as Suncor Energy Inc. added 3.8 percent and TransCanada Corp. rose 3.1 percent. Barrick Gold Corp. and Yamana Gold Inc. climbed more than 1.2 percent as raw-materials producers increased 0.7 percent as a group. Gold futures advanced for the first time in four sessions.

     Warplanes bombed Islamic State’s nerve center in Raqqa after France said Europe’s worst terror attack in a decade was directed from Syria, which borders OPEC producer Iraq. Crude has plunged about 45 percent in the past year amid signs oversupply will persist.

     Europe is on high alert after at least 129 people were killed in more than half a dozen locations in the French capital. The massacre comes less than a year after the attack on French satirical newspaper Charlie Hebdo in Paris.

     DHX Media Ltd., a media entertainment producer, jumped 3.5 percent for the biggest increase in two months after reporting first-quarter profit and revenue ahead of analysts’ estimates. Of the more than 200 companies in the S&P/TSX to report in the current period, about 60 percent missed revenue estimates, according to data compiled by Bloomberg.

     Valeant Pharmaceuticals International Inc. lost 2.6 percent, to a two-year low. Valeant, briefly the largest stock in Canada by market capitalization this year, has lost more than 71 percent from an Aug. 5 high amid pressure over how it prices its drugs. 

USA

By Dani Burger

     (Bloomberg) — U.S. stocks rebounded after their worst week since an August selloff, paced by energy shares amid speculation that any fallout from Friday’s terrorist attacks in Paris would have a limited economic impact.

     Last week’s hardest-hit group led the rally, an echo of the snapback from the summer selloff, as Chevron Corp. and Exxon Mobil Corp. gained more than 3.5 percent. Procter & Gamble Co. and Wal-Mart Stores Inc. led a surge among consumer staples, rising at least 1.8 percent. Defense companies drove gains among industrials, and thermal-imaging camera maker Flir Systems Inc. jumped 10 percent to lead the S&P 500.

     The Standard & Poor’s 500 Index rose 1.5 percent to 2,053.19 at 4 p.m. in New York, the biggest gain in more than three weeks. The gauge rose back above its average price during the past 100 days. The Dow Jones Industrial Average added 237.77 points, or 1.4 percent, to 17,483.01. It was the Dow’s third consecutive move of at least 200 points.The Nasdaq Composite Index increased 1.2 percent. About 6.8 billion shares traded hands on U.S. exchanges, 9.7 percent below the three-month average.

     “We had a pretty sizable loss over the last two weeks and just because of that we may not be seeing as much as a negative reaction as we could have if the tragedy occurred two weeks ago when the market was up within one percent of the highs,” said Frank Cappelleri, a market technician at Instinet LLC in New York. “Today at least, knowing where the market has come from, it’s helped it at least to be stable.”

     Coordinated assaults late Friday linked to Islamist radicals killed at least 129 people in seven locations in Paris, in Europe’s worst terrorist attack in at least a decade. France dispatched warplanes to bomb Islamic State’s Syrian nerve center while police conducted raids on suspected Islamic radicals in all of France’s major cities.

     The main U.S. equity benchmark index is now 3.6 percent away from its record set in May, after rising to within 1 percent of the all-time high on Nov. 3. The S&P 500 had fallen in seven of the previous eight sessions after Fed Chair Janet Yellen said policy makers’ December meeting was a “live possibility” for a rate increase.

     Traders are pricing in a 64 percent probability that the Fed will raise rates next month. Investors will assess data this week on consumer prices, factory activity and housing starts for further clues on the probability of a boost in rates. Minutes from the central bank’s October policy meeting will be released on Wednesday. A reading today on New York area manufacturing activity in November contracted more than expected, according to estimates from economists surveyed by Bloomberg.

     “This is going to be a market driven by U.S. economic data,” said Stephen Wood, who helps manage $265 billion as chief market strategist for North America at Russell Investments in New York. “I think the market is still keeping it’s gaze on a December Fed decision.”

     All of the S&P 500’s 10 main industries advanced at least 1.2 percent Monday. Energy, phone companies and consumer staples added more than 1.6 percent. The Chicago Board Options Exchange Volatility Index declined 9.6 percent Monday to 18.16, the most in more than three weeks. The measure of market turbulence known as the VIX jumped 40 percent to a six-week high last week, its biggest increase since August.

     Energy companies gained 3.3 percent, the most in more than six weeks to win back more than half of last week’s 6 percent drop. Consol Energy Inc. and Williams Cos. were among the best performers in the S&P 500, rising at least 6.3 percent. Consol gained 7.6 percent after Greenlight Capital’s David Einhorn reiterated his long position in the company, according to people with knowledge of the matter.

     Consumer staples shares in the S&P 500 rose 1.6 percent after falling 2.8 percent last week. Walgreens Boots Alliance Inc. and Tyson Foods Inc. were among the best performers, increasing more than 2.5 percent. Wal-Mart had its strongest increase in more than two months.

     A batch of defense companies climbed in the wake of the Paris attacks. Northrup Grumman Corp., Raytheon Co. and Lockheed Martin Corp. rallied at least 3.5 percent, with Raytheon rising to a record. A proposed $1.29 billion sale of U.S. weapons to Saudi Arabia includes as many as 13,000 smart bombs and spare parts made by Raytheon and Boeing Co., according to officials. Flir Systems, which makes night-vision gear, advanced the most in more than six years.

     Constellation Brands Inc. gained 2.3 percent after the wine and vodka maker agreed to acquire Ballast Point Brewing & Spirits for $1 billion. It follows consolidation in the brewing industry, led by Anheuser-Busch InBev SA’s planned $107 billion takeover of SABMiller Plc. Boston Beer Co. added 3.8 percent.

     Cisco Systems Inc. was among the Dow’s best performers, gaining 2.2 percent after posting its biggest slump since August. Hard-drive makers Western Digital Corp. and Seagate Technology Plc also saw a boost after last week’s selloff, up more than 2.3 percent.

     Following Friday’s terror attacks, online travel booking companies Priceline Group Inc. and Expedia Inc. fell more than 2.1 percent. Air carriers and cruise lines also slumped — Carnival Corp. and American Airlines lost at least 1.4 percent to their lowest in more than a month. A Bloomberg index of U.S. air carriers dropped 1.1 percent to its lowest in almost four weeks.

     Among other companies moving on corporate news, Starwood Hotels & Resorts Worldwide Inc. sank 3.6 percent after Marriott International Inc. agreed to buy Starwood in a deal valued at $12.2 billion, creating the world’s largest hotel company.  Marriott gained 1.4 percent.

     Urban Outfitters Inc. also retreated on acquisition news, after announcing plans to buy the Vetri Family group of Italian restaurants. The retailer dropped 7.4 percent to its lowest in more than four years.
 

Have a wonderful evening everyone.

 

Be magnificent!

I declare out loud to whoever wants to believe me:

I have no word in my mouth

that is not in your heart!

Kabir

As ever,

 

Carolann

 

We can’t help everyone, but everyone can help someone.

                                        -Ronald Reagan, 1911-2004

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7