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

Ecuador’s Tungurahua volcano spews large clouds of gas and ash near Banos, Thursday. Tungurahua, which means ‘Throat of Fire’ in the local Quechua language, has been classified as active since 1999. Carlos Campana/Reuters

Hungary’s Zsolt Toth carves Star Wars character Darth Vader for the ice sculpture festival in Liege, Belgium, Friday. Eric Vidal/Reuters

Market Closes for November 13^th, 2015

Market Index	Close	Change
Dow Jones	17245.24	-202.83   -1.16%
S&P 500	2023.06	-22.91   -1.12%
NASDAQ	4927.883	-77.196   -1.54%
TSX	13070.97	-56.21
		-0.43%

International Markets

Market Index	Close	Change
NIKKEI	19596.91	-100.86
		-0.51%
HANG SENG	22396.14	-492.78
		-2.15%
SENSEX	25610.53	-256.42
		-0.99%
FTSE 100	6118.28	-60.40
		-0.98%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.655	1.702
CND. 30 Year Bond	2.349	2.390
U.S.    10 Year Bond	2.2746	2.3116
U.S. 30 Year Bond	3.0568	3.0903

Currencies

BOC Close	Today	Previous
Canadian $	0.75063	0.75236
US $	1.33221	1.32915
Euro Rate 1 Euro=		Inverse
Canadian $	1.43217	0.69824
US $	1.07504	0.93020

Commodities

Gold	Close	Previous
London Gold Fix	1081.50	1087.40
Oil	Close	Previous
WTI Crude Future	40.74	41.75

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell an eighth day, the worst stretch for the resource-dominated market since before the financial crisis, amid a worsening outlook for global growth from Asia to Europe and the U.S.

     The Standard & Poor’s/TSX Composite Index slipped 0.4 percent, led by declines in the nation’s largest banks. Earlier advances in energy producers and health-care companies weren’t enough to maintain a brief midday rally as the index fell in the final hours of trading. 

     The equity gauge has lost 4.6 percent in eight days for the longest losing streak since June 2002. Natural-resource producers have slumped more than 5 percent over that period as the Bloomberg Commodity Index tracking prices from copper to crude fell to a 1999 low.

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

     “The market is looking for a stamp of approval,” said Ian Nakamoto, director of research at MacDougall MacDougall & MacTier Inc. in Toronto. His firm manages about C$5 billion. “Earnings have been mediocre. These very weak numbers make things more difficult for the Fed.”

     The S&P/TSX fell 51.78 points to 13,075.40 at 4 p.m. in Toronto. The benchmark equity gauge has lost 11 percent this year, trailing only Singapore and Greece among developed markets.

     Euro-area gross domestic product rose 0.3 percent in the third quarter, short of the median 0.4 percent analysts’ estimate in a Bloomberg survey. Meanwhile U.S. retail sales increased less than forecast in October as consumers pocketed money saved from cheaper gas. The data come after figures earlier in the week indicated imports in China, one of the world’s largest consumers of natural resources, had retreated on slowing demand from heavy industries.

     Energy producers rebounded from a six-week low, reversing earlier declines, led by gains from Encana Corp. to Enerplus Corp. of at least 7 percent. Drugmaker Concordia Healthcare Corp. jumped 16 percent to a one-month high after reporting third-quarter earnings and revenue ahead of estimates.

     Toronto-Dominion Bank and Royal Bank of Canada slipped more than 1.3 percent to weigh on financial companies in the S&P/TSX. The group posted its steepest weekly decline in almost three months.

     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. added 2.5 percent, rebounding from a two-year low. Valeant, briefly the largest stock in Canada by market capitalization this year, has lost 71 percent from an Aug. 5 high amid pressure over how it prices its drugs. 

US

By Dani Burger

     (Bloomberg) — U.S. stocks declined, capping their first weekly drop since September, after weaker-than-expected retail sales data added to concern that growth remains uneven as policy makers consider raising interest rates as soon as next month.

     Retailers and apparel companies led the drop after Nordstrom Inc.’s results missed analysts’ estimates, sending its shares down 15 percent. Cisco Systems Inc. slumped 5.8 percent, dragging technology companies lower after its outlook disappointed. Energy shares sank as oil fell to its lowest in more than two months.

     The Standard & Poor’s 500 Index retreated 1.1 percent to 2,023.04, with the gauge posting its worst week since August as it closed at a three-week low. The Dow Jones Industrial Average declined 202.83 points, or 1.2 percent, to 17,245.24. The Dow had its biggest back-to-back drop in more than two months. The Nasdaq Composite Index lost 1.5 percent. About 7.7 billion shares traded hands on U.S. exchanges, 4 percent above the three-month average.

     “The takeaway from today’s retail data is more concern about the pace and magnitude of any Fed rate hike cycle on a still uneven growth experience in the economy,” said Eric Wiegand, senior portfolio manager at the Private Client Reserve of US Bank in New York. “There was continued strength in the labor market, which is giving the Fed confidence to raise. But there’s softness with data beyond that and without oil moving meaningfully higher suggests we won’t see commodity price pressures.”

     As investors evaluate the strength of the world’s largest economy, data today showed sales at retailers rose less than forecast last month as consumers pocketed the money saved after fueling up their cars. A separate report showed wholesale prices unexpectedly declined in October for a second month. Meanwhile, consumer sentiment climbed to a four-month high in a preliminary November reading as Americans took heart in lower interest rates and store discounts.

     The S&P 500 has advanced just once in the eight sessions since Federal Reserve Chair Janet Yellen reminded investors that December’s policy meeting could bring the first rate increase since 2006. The U.S. equity benchmark has declined 4.1 percent since rallying to within 1 percent of a record on Nov. 3. Energy, technology and consumer discretionary shares have each dropped at least 4.5 percent this week, the most since August.

     Federal Reserve Bank of Cleveland President Loretta Mester said today a strengthening U.S. economy is ready for higher interest rates as she predicted growth of 2.5 percent to 2.75 percent through the rest of this year and next year. Fed officials yesterday stressed that monetary policy should be tightened only gradually after rates are increased.

     Traders are currently pricing in a 64 percent chance of a Fed rate increase in December, up from as low as 27 percent last month. Odds increased sharply after last Friday’s stronger-than- expected October jobs report.

     Economic data will have center stage as the majority of companies in the S&P 500 have now reported earnings results. About 73 percent beat profit estimates while just 44 percent surpassed sales expectations. Analysts are now predicting a 3.7 percent fall in earnings in the third quarter, an improvement on estimates for a 7.2 percent drop at the start of the season.

     The Chicago Board Options Exchange Volatility Index rose 9.3 percent Friday to 20.08. The measure of market turbulence known as the VIX was up 40 percent this week, the most since August.

     Consumer discretionary companies fell 2.7 percent on the softer-than-expected retail data and earnings results, the worst performer among the S&P 500’s 10 major groups. Discretionary companies saw their biggest weekly drop in almost three months.

     Nordstrom joined Macy’s Inc. in posting weak quarterly results, hinting at a dwindling appetite among consumers for department stores. Macy’s sank 4.2 percent, while Ross Stores Inc. and Kohl’s Corp. fell at least 6.4 percent. Fossil Group Inc. plunged 37 percent to a five-year low after its sales missed analysts’ estimates, fueling concern that the watch industry is mired in a slump and losing ground to wearable technology.

     Nordstrom’s results renewed a retreat among apparel companies that sell their clothes in large department stores. Michael Kors Holdings Ltd. and PVH Corp. declined more than 4.7 percent following a brief reprieve yesterday after Kohl’s earnings topped estimates. Under Armour Inc. and Nike Inc. slumped at least 3.2 percent with the group marking its worst week in more than four years.

     GameStop Corp. tumbled 17 percent, the most in more than a year. Pacific Crest Securities LLC downgraded the shares to the equivalent of hold from buy, citing struggling physical software sales as digital downloads of games affects growth. Among other retailers, Best Buy Co. slumped 5.7 percent to a more than two- month low.

     Cisco Systems posted its steepest decline in two years after saying weaker global economic growth and the strength of the U.S. dollar are hurting international sales of its equipment. F5 Networks Inc. and Juniper Networks Inc. lost more than 3.1 percent, while Oracle Corp. sank 3.4 percent. Also weighing on the tech group, Facebook Inc. declined 3.8 percent and Apple Inc. decreased 2.9 percent, taking its slide this week to 7.2 percent, the most since August.

     Energy companies in the benchmark slid for the seventh time in eight days, retreating 0.6 percent after an earlier drop of 1.6 percent. Oil saw a second weekly decline, falling to its lowest level in more than two months as U.S. crude stockpiles rose three times more than forecast. Chesapeake Energy Inc. fell 3.5 percent and Exxon Mobil Corp. slid 1.7 percent.

     Perrigo Co. slid 6.2 percent, the most in 18 months, after Mylan NV failed to attract a majority of Perrigo shareholders to its $26 billion takeover offer. Generic drugmaker Mylan said about 40 percent of Perrigo holders tendered their shares by the Friday deadline, short of the 50 percent required to move ahead. Mylan rallied 13 percent, the most since April.

     Yum! Brands Inc. also moved on company news, climbing 3.5 percent after the fast-food chain owner reported same-store sales at its restaurants in China grew an estimated 5 percent last month. Yum recently bowed to activist pressure, agreeing to spin off its China business from its U.S. operations.

     Raw-materials companies in the benchmark rose 1.2 percent, trimming their worst weekly decline since September. Alcoa Inc. and fertilizer maker Mosaic Co. gained more than 1.7 percent.

Have a wonderful weekend everyone.

 

Be magnificent!

 

 “Nothing will work unless you do.” Maya Angelou

 

As ever,

 

Karen

 

 “Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.” Francis of Assisi

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 walk along a forest as the sun shines over fog near Albis Pass mountain pass, Switzerland on Thursday. Arnd Wiegmann/Reuters

A giraffe calf born on Aug. 31, 2015, stands in the foreground with other adult giraffes at the Singapore Zoo on Thursday in Singapore. The Singapore zoo is known for its efforts in promoting and educating the public about the importance of wildlife conservation through its educational programs and through the breeding of its animals in captivity which also include some endangered species. This is the Singapore Zoo’s first giraffe calf in 28-years. Wong Maye-E/AP

Market Closes for November 12^th, 2015

Market Index	Close	Change
Dow Jones	17448.07	-254.15   -1.44%
S&P 500	2045.97	-29.03   -1.40%
NASDAQ	5005.078	-61.941   -1.22%
TSX	13127.18	-214.75
		-1.61%

International Markets

Market Index	Close	Change
NIKKEI	19697.77	+6.38
		+0.03%
HANG SENG	22888.92	+536.75
		+2.40%
SENSEX	25866.95	+123.69
		+0.48%
FTSE 100	6178.68	-118.52
		-1.88%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.702	1.708
CND. 30 Year Bond	2.390	2.401
U.S.    10 Year Bond	2.3116	2.3328
U.S. 30 Year Bond	3.0903	3.1069

Currencies

BOC Close	Today	Previous
Canadian $	0.75236	0.75327
US $	1.32915	1.32755
Euro Rate 1 Euro=		Inverse
Canadian $	1.43668	0.69605
US $	1.08090	0.92515

Commodities

Gold	Close	Previous
London Gold Fix	1087.40	1087.10
Oil	Close	Previous
WTI Crude Future	41.75	44.21

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — The resource-heavy Canadian stock benchmark fell to a six-week low after capping its longest losing streak since July, as concern that growth in Europe and China will hurt demand renewed a rout in commodities.

     Valeant Pharmaceuticals International Inc. contributed the most to declines in the benchmark index as the embattled drug maker tumbled to the lowest since 2013. Energy producers retreated as oil fell through $42 a barrel in New York to a two- month low.

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

     The Standard & Poor’s/TSX Index fell 214.75 points, or 1.6 percent, to 13,127.18 at 4 p.m. in Toronto. The benchmark equity gauge has lost 4.3 percent in its longest losing streak since July 27. The slump extended declines this year to 10 percent, trailing only Singapore and Greece among developed markets.

     Commodities tumbled as signs that global growth is slowing mounted. Data on Thursday showed industrial production in the euro area fell more than economists forecast. Earlier this week China data showed imports to the country slumped amid slowing demand for resources from heavy industries. China is Canada’s second-largest trading partner after the U.S.

     Manulife Financial Corp. lost 3.7 percent, the most in two months, after posting a 43 percent slide in third-quarter profit blamed on its slumping oil and gas investments. Manulife, Canada’s largest insurer, is one of more than 50 companies in Canada to report quarterly results Thursday. 

     Of the nearly 200 companies in the Standard & Poor’s/TSX Composite Index to report thus far in the current period, about 60 percent missed revenue estimates, according to data compiled by Bloomberg.

     Valeant dropped 6.4 percent, to a July 2013 low. 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. The drugmaker said in a conference call Tuesday that the decision to cut ties with pharmacy Philidor Rx Services would meaningfully affect its dermatology business.

US

By Kate Garber

     (Bloomberg) — U.S. stocks fell the most in six weeks as a rout in commodities pressured energy and raw-materials providers while investors braced for the first rise in interest rates since 2006.

     Chevron Corp. dropped 2.5 percent and miner Freeport- McMoRan Inc. sank 5.8 percent as the stronger dollar and a persistent slump in demand from China sent the Bloomberg Commodity Index to the lowest since 1999. The recent weakness in commodity shares is a turnabout after energy and raw-materials helped drive a rebound from a summer correction and in October had their strongest month in four years.

     The Standard & Poor’s 500 Index fell 1.4 percent to 2,045.97 at 4 p.m. in New York, slipping below its average price during the past 200 days for the first time in two weeks. The U.S. equity benchmark has struggled to hold gains after rallying to within 1 percent of a record on Nov. 3. The Dow Jones Industrial Average lost 254.15 points, or 1.4 percent, to 17,448.07. The Nasdaq Composite Index declined 1.2 percent. About 7.1 billion shares traded hands on U.S. exchanges, about 4 percent below the three-month average.

     “Tighter policy expectations coming out of the Fed has led to a mini rally in the dollar and inflation expectations seem fairly well-anchored so additional pressure on commodities is not really a surprise,” David Lafferty, the chief market strategist for Natixis Global Asset Management in Boston, said by phone. “The fact it’s all commodities seeing weakness tells you it’s a dollar and Fed-related story.”

     Federal Reserve officials today stressed that policy should be tightened only gradually after interest rates are increased for the first time in almost a decade, with New York Fed President William C. Dudley saying the conditions for liftoff “could soon be satisfied.”

     In addition to Dudley’s comments, Fed Bank of St. Louis President James Bullard said the U.S. central bank should raise interest rates from near zero because emergency policies are not needed with the labor market and inflation near to the central bank’s goals.

     Fed Bank of Chicago President Charles Evans said regardless of when it begins raising rates, the Fed must be clear that the pace of future increases will be gradual. Traders are now pricing in a 64 percent chance of a rate rise next month, up from odds of 27 percent less than a month ago.

     The S&P 500 has advanced just once in the seven sessions since Fed Chair Janet Yellen reminded investors that December’s meeting could bring the first rate increase in six years. Investors raised the probabilities of a Fed rate hike in December after a Labor Department report Friday showed 271,000 jobs were added in October, and the jobless rate fell to 5 percent.

     Data today showed applications for unemployment benefits were unchanged in the first week of November, signaling employers with a healthier appetite for hiring are also holding the line on firings. A separate report showed the number of positions waiting to be filled in the U.S. rose by 149,000 to 5.53 million in September from a revised 5.38 million in the month before.

     “With a hike in December looking almost certain, it’s only normal to see some flight away from risk assets,” said Pedro Ricardo Santos, a broker at X-Trade Brokers DM SA in Lisbon. “Earnings season is drawing to a close and a few companies have actually done better than expected — maybe the end of the year won’t be as bad as we thought.”

     Equity strategists project the index can squeeze out a further 5 percent of gain from today’s close to end the year at the 2,150 level, according to the average forecast compiled by Bloomberg. The advance would push the benchmark ahead of its May record and round up a fourth consecutive year of gains.

     With most S&P 500 members having already reported earnings this season, 73 percent beat profit expectations while only 44 percent topped sales projections. Analysts are now predicting a 3.8 percent drop in profits for the third quarter, an improvement on estimates for a 7.2 percent slide at the start of the season.

     All 10 major industries in the S&P 500 dropped today, with commodities shares tumbling more than 2 percent. The Chicago Board Options Exchange Volatility Index jumped 14 percent to 18.37, its highest level in a month. The measure of market turbulence known as the VIX is rebounding after its biggest monthly drop ever in October.

     “Fundamentals are taking a little bit of a back seat to some of the central bank talk and activity,” said Sean Lynch, co-head of global equity strategy for Wells Fargo Investment Institute. “We’re starting to see a little bit of cracks in emerging markets and some worries over the strength of the dollar. Certainly I think China is the big weight on commodities, but there’s other factors that are causing this headwind to commodities, like the dollar.”

     Energy companies in the benchmark index retreated 2.4 percent, falling for the sixth time in seven sessions. Oil dropped to the lowest level in more than two months after U.S. crude stockpiles increased for a seventh week, prolonging a global surplus. Exxon Mobil Corp. fell 2.7 percent, while ConocoPhillips and Valero Energy Corp. lost at least 2.4 percent.

     Freeport-McMoRan fell to its lowest since Aug. 26 amid its longest losing streak since that date, as the raw-material group had its worst drop in a month. Copper sank to its cheapest since 2009. Alcoa Inc. slid 3.2 percent to a two-year low, while International Paper Co. decreased 3.9 percent.

     Caterpillar Inc. was the worst performer among Dow components, declining 4.5 percent to fall the most in seven weeks. Canada’s Finning International Inc., the largest dealer of Caterpillar’s heavy machinery, announced plans to close plants and deepen workforce cutbacks amid slumping demand.

     Among other companies moving on corporate news, Advance Auto Parts Inc. shares dropped 15.4 percent, the most in three years, following weaker-than expected third-quarter results, and as the company said Chief Executive Darren Jackson will step down. The auto-parts chain has been under pressure from activist investor Starboard Value since late September.

     Kohl’s Corp. gained 6.1 percent, the most in nine months, after its quarterly profit and sales beat analysts’ estimates. The announcement was a surprise after Macy’s Inc., the largest U.S. department-store company, yesterday missed sales estimates and cut its profit outlook. Kohl’s advance today erases a 5.4 percent drop Wednesday amid the Macy’s fallout.

     Nordstrom Inc. climbed 1.9 percent, after rising as much as 3.5 percent, to recover part of its loss yesterday. Those gains may be short-lived. The shares tumbled 15 percent in late trading as of 4:41 p.m. after third-quarter earnings missed analysts’ estimates, renewing concerns about a slump in the department-store industry.

     Viacom Inc. rose 0.9 percent, despite underwhelming fourth- quarter results, after executives predicted increasing advertising revenue and higher affiliate fees. They pointed out that six of the media company’s top 10 networks are seeing audience growth. Shares earlier rose as much as 4.7 percent.

Have a wonderful evening everyone.

 

Be magnificent!

 

“A good life is when you assume nothing, do more, need less, smile often, dream big, laugh a lot, and realize how blessed you are.” — Unknown

 

As ever,

 

Karen

“Ability is what you’re capable of doing. Motivation determines what you do. Attitude determines how well you do it.” Lou Holtz

 

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 1983, Microsoft introduced Windows.

1925: Actor Richard Burton was born.

On Nov. 10, 1982, the newly finished Vietnam Veterans Memorial was opened to its first visitors in Washington, D.C.

1871: Stanley finds Livingstone.

November 10, 1872, in the New York Herald, H.M. Stanley describes the most famous meeting of his life the year before, on November 10^th, 1871:

Well, we are but a mile from Ujiji [on lake Tanganyika] now, and it is high time we should let them know a caravan is coming; so “Commence firing” is the word passed along the length of the column, and gladly do they begin.  They have loaded their muskets half full, and they roar like the broadside of a line-of-battle ship.  Down go the ramrods, sending huge charges home to the breech, and volley after volley is fired.   The flags are fluttered; the banner of America is in front, waving joyfully….near; and still the cannon muskets tell the noisy seconds…

  Suddenly a man – a  black man – at my elbow shouts in English, “How do you do, sir?”

  “Hello, who the deuce are you?”

  “I am the servant of Dr. Livingstone,” he says; and before I can ask any more questions he is running like a madman towards the town.

  We have at last entered the town.  There are hundreds of people around me – I might say thousands without exaggeration, it seems to me.  It is a grand triumphal procession.  As we move, they move.  All eyes are drawn towards us.  The expedition at last comes to a halt;  the journey is ended for a time; but I alone have a few more steps to make.

  There is a group of the most respectable Arabs, and as I come nearer I see the white face of an old man among them.  He has a cap with a gold band around it, his dress is a short jacket of red blanket cloth, and his pants – well, I didn’t observe.  I am shaking hands with him.  We raise our hats, and I say:

  “Dr. Livingstone, I presume?”

  And he says, “Yes.”
 

PHOTOS OF THE DAY

People rest on the promenade des Anglais in Nice, southeastern France, Tuesday. Lionel Cironneau/AP

A boy stands in between the garlands kept on sale along the streets of Kathmandu during the Tihar festival, also called Diwali, in Kathmandu, Nepal, Tuesday. Hindus all over Nepal are celebrating the Tihar festival during which they worship cows, which are considered a maternal figure, and other animals. Also known as the festival of lights, devotees also worship the goddess of wealth Laxmi by illuminating and decorating their homes using garlands, oil lamps, candles and colorful light bulbs. Navesh Chitrakar/Reuters

Market Closes for November 10^th, 2015

Market Index	Close	Change
Dow Jones	17758.21	+27.73   +0.16%
S&P 500	2081.72	+3.14   +0.15%
NASDAQ	5083.246	-12.056   -0.24%
TSX	13411.63	-70.99
		-0.53%

International Markets

Market Index	Close	Change
NIKKEI	19671.26	+28.52
		+0.15%
HANG SENG	22401.70	-325.07
		-1.43%
SENSEX	25743.26	-378.14
		-1.45%
FTSE 100	6275.28	-19.88
		-0.32%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.708	1.726
CND. 30 Year Bond	2.401	2.423
U.S.    10 Year Bond	2.3328	2.3527
U.S. 30 Year Bond	3.1069	3.1177

Currencies

BOC Close	Today	Previous
Canadian $	0.75327	0.75277
US $	1.32755	1.32843
Euro Rate 1 Euro=		Inverse
Canadian $	1.42308	0.70270
US $	1.07196	0.93287

Commodities

Gold	Close	Previous
London Gold Fix	1087.10	1089.60
Oil	Close	Previous
WTI Crude Future	44.21	43.87

There’s a certain part of the contented majority who love anybody who is worth a billion dollars.  –John Kenneth Galbraith.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks slumped a fifth day, extending losses after reaching a month low, amid a resurgence in concern over slowing economic growth in China.

     China’s consumer-price index rose a slower-than-forecast 1.3 percent in October, the latest sign that consumer demand is weakening and the world’s second-biggest economy is slowing. The fresh data comes after an earlier report showed a slump in imports in China on weaker industrial demand for coal, iron and other commodities.

     The Standard & Poor’s/TSX Composite Index fell 70.99 points, or 0.5 percent, to 13,411.63 at 4 p.m. in Toronto. The index has lost 8.3 percent this year, trailing only Singapore and Greece among developed markets.

     Base metals and coal producer Teck Resources Ltd. dropped 3 percent and First Quantum Minerals Ltd. sank 6.6 percent as zinc traded at a six-year low, leading declines in industrial metals. Raw-materials producers lost 2.1 percent as a group, for the fourth decline in five sessions.

     Canadian equities have lagged most peers, led by declines in natural resource and health-care stocks, as the country’s resource-dominated market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest- rate hike from the Federal Reserve. China is Canada’s second- largest trading partner after the U.S.

     Amaya Inc., the online gambling purveyor, plunged a record 32 percent after cutting its revenue and earnings expectations for the year. The strengthening U.S. dollar, especially against the euro, has significantly crimped consumer purchasing power and curbed revenue, the company said.

     Intertape Polymer Group Inc. jumped 9.2 percent, the most since May. U.S. hedge funds FrontFour Capital Group and Zelman Capital are agitating for change at the company, urging the board to consider ways to unlock value including a possible sale of the Quebec-based packaging company.

     Valeant Pharmaceuticals International Inc. slipped 2.2 percent. The drugmaker said in a conference call Tuesday that the decision to cut ties with pharmacy Philidor Rx Services would meaningfully affect its dermatology business. Valeant will also host an investor day and update financial forecasts before the end of the year. Valeant has lost 68 percent from an Aug. 5 high amid pressure over how it prices its drugs.

US

By Kate Garber

     (Bloomberg) — U.S. stocks were little changed, with the Standard & Poor’s 500 Index ending a four-day losing streak, as investors weighed the extent of the autumn rally in equities and the odds of higher interest rates in December.

     Health-care and consumer shares bounced after equities’ steepest decline in six weeks, offsetting a slide in Apple Inc. that weighed on the technology group and a retreat among raw- materials shares amid fresh signs of weakness in China.

     The S&P 500 rose 0.2 percent to 2,081.72 at 4 p.m. in New York, erasing an earlier drop of as much as 0.4 percent. The Dow Jones Industrial Average gained 27.73 points, or 0.2 percent, to 17,758.21. The Nasdaq Composite Index fell 0.2 percent as declines of more than 1.2 percent in Apple and Microsoft Corp. weighed.

     “It feels like a little bit of a breather here,” said Jeff Carbone, who oversees about $1.1 billion as the founder of Cornerstone Financial Partners in Charlotte, North Carolina. “Earnings season is 95 percent through. Now it’s going to be what else can we look for to keep this market moving forward? The key economic data is going to be watching the consumer.”

     The benchmark gauge slid the most since September yesterday, after six straight weeks of gains took it within 1 percent of a record reached in May. The S&P 500 had risen as much as 13 percent from an August low following its first correction in four years. The rally stalled last week after Federal Reserve Chair Janet Yellen said a December rate increase was a “live possibility,” and the October jobs report was stronger than expected. Traders now price in a 66 percent chance of a liftoff next month, up from about 50 percent a week ago.

     With the earnings season drawing to an end, economic data will move to the forefront as policy makers assess whether to raise rates next month. Readings on the health of consumers are due later this week, with October retail sales and consumer sentiment both forecast to rise, according to economists surveyed by Bloomberg. A gauge on wholesale prices is also expected to strengthen.

     Analysts now project profits for S&P 500 companies dropped 3.8 percent in the third quarter, improved from calls for a 7.2 percent decline at the start of the season. Of those index members that have reported, 74 percent beat profit projections, while 56 percent missed sales estimates.

     The Chicago Board Options Exchange Volatility Index declined 7.5 percent Tuesday to 15.29. The measure of market turbulence known as the VIX jumped 15 percent yesterday, the most since Sept. 28, and is up 1.5 percent this month after falling the most ever in October.

     Among the S&P 500’s 10 main industries, raw-materials and technology were the worst performers, while consumer discretionary, utilities and health-care shares rose the most. Miner Freeport-McMoRan Inc. fell 6.3 percent to its lowest in more than a month as copper dropped after weaker-than-expected inflation data in China. Alcoa Inc. lost 3 percent to a more than two-month low.

     D.R. Horton Inc. rose 8.3 percent, the most since April 2014 to lead an S&P gauge of homebuilders to its best gain in nine months. PulteGroup Inc. and Lennar Corp. added more than 3.3 percent.

     Beverage makers led gains among consumer staples companies. Constellation Brands Inc. and Molson Coors Brewing Co. increased more than 1.1 percent. Coca-Cola Enterprises Inc. and Dr. Pepper Snapple Group Inc. advanced at least 1.4 percent.

     Four Corners Property Trust Inc. climbed 5.9 percent, the second-strongest gain among consumer discretionary shares in the S&P 500. Darden Restaurants Inc. completed the spinoff of its selected real-estate assets, with Four Corners becoming an independent company.

     Chipotle Mexican Grill Inc. gained 3.2 percent, the most since July, as it prepares to reopen 43 restaurants in the Pacific Northwest that have been closed for more than a week after an E. coli outbreak sickened dozens of customers.

     Discovery Communications Inc. climbed 3.7 percent. Discovery and Liberty Global Plc will take a combined 6.8 percent stake in Lions Gate Entertainment Corp., deepening the studio’s ties to cable billionaire John Malone. Lions Gate increased 4.1 percent, the most in three months. CBS Corp. and 21st Century Fox Inc. added more than 2 percent.

     Hard-drive makers Seagate Technology Plc and Western Digital Corp. declined at least 4.5 percent, along with Apple’s 3.2 percent slide to pace the retreat among technology companies. Credit Suisse Group AG said in a research report its checks indicate that Apple seems to have lowered component orders by as much as 10 percent, driven by weak demand for iPhone 6s.

     Apple supplier Cirrus Logic Inc. dropped 8.6 percent. Chipmakers Qorvo Inc. and Avago Technologies Ltd. lost more than 3.3 percent, while the Philadelphia Stock Exchange Semiconductor Index decreased 1.8 percent.

     Rockwell Automation Inc. fell 3.4 percent, the most in two months, after the industrial equipment and software provider warned of declining earnings and sales in 2016 amid weak industrial market conditions and a stronger dollar.

     Anadarko Petroleum Corp. lost 6.6 percent, the most since January. Anadarko approached Apache Corp. about a combination that would be the largest for an independent U.S. oil and gas producer this year, according to people familiar with the matter.

     Gap Inc. fell 1.4 percent, and earlier as much as much as 6.1 percent, after the retailer said its sales missed estimates for both its Gap and Banana Republic brands and preliminary third-quarter profit also fell short of forecasts. The company will report its full quarterly results on November 19.

     Gap’s disappointing sales didn’t hold back other retailers. Nordstrom Inc., Kohl’s Corp. and Macy’s Inc. each rose at least 1.7 percent, after falling more than 4.7 percent on Monday.  

 

Have a wonderful evening everyone.

 

Be magnificent!

Guard your tongue, for it is highly dangerous;

unguarded words can cause terrible distress.

A single bad word can destroy a vast quantity of good.

A wound caused by fire will eventually heal;

but a wound caused by the tongue leaves a scar that never heals.

Valluvar

As ever,

 

Carolann

 

Even if you fall on your face, you’re still moving forward.

                                           -Victor Kiam, 1926-2001

 

 

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 Nov. 9, 1989, East Germany lifted restrictions on emigration or travel to the West, and within hours tens of thousands of East and West Berliners swarmed across the infamous Berlin Wall for a boisterous celebration.

Kristallnacht, “Crystal Night’, November 9, 1938: pogrom against Jews in Germany.

On this day in 1989, East Germany opens the Berlin Wall.

The Poem:

      -selected by Natahsa Tretheway, NY Times, 11/8/2015.

My Life
    -by Lynn Emanuel

Like Jonas by the fish was I received by it,
swung and swept in its dark waters,
driven to the deeps by it and beyond many rocks.
Without any touching of its teeth, I tumbled into it
with no more struggle than a mote of dust
entering the door of a cathedral, so muckle were its jaws.
How heel over head was I hurled down
the broad road of its throat, stopped inside
its chest wide as a hall, and like Jonas I stood up
asking where the beast was and finding it nowhere,
there in grease and sorrow I build my bower.

PHOTOS OF THE DAY

A man walks past vineyards around Kappelberg hill near Fellbach and Stuttgart, Germany, Monday. Christoph Schmidt/dpa/AP

An Egyptian policeman walks near the Khufu pyramid in Giza, Egypt, Monday. Egypt’s Antiquities Ministry says a scanning project in the Giza pyramids has identified thermal anomalies, including one in the largest pyramid, built by Cheops, known locally as Khufu. Nariman El-Mofty/AP

Market Closes for November 9^th, 2015

Market Index	Close	Change
Dow Jones	17730.48	-179.85   -1.00%
S&P 500	2078.58	-20.62   -0.98%
NASDAQ	5095.301	-51.820   -1.01%
TSX	13482.62	-70.68
		-0.52%

International Markets

Market Index	Close	Change
NIKKEI	19642.74	+377.14
		+1.96%
HANG SENG	22726.77	-140.56
		-0.61%
SENSEX	26121.40	-143.84
		-0.55%
FTSE 100	6295.16	-58.67
		-0.92%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.726	1.715
CND. 30 Year Bond	2.423	2.415
U.S.    10 Year Bond	2.3527	2.3252
U.S. 30 Year Bond	3.1177	3.0861

Currencies

BOC Close	Today	Previous
Canadian $	0.75277	0.75164
US $	1.32843	1.33042
Euro Rate 1 Euro=		Inverse
Canadian $	1.42832	0.70012
US $	1.07520	0.93006

Commodities

Gold	Close	Previous
London Gold Fix	1089.60	1088.90
Oil	Close	Previous
WTI Crude Future	43.87	44.29

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a fourth day, for the lowest close in a month, as financial services companies declined and energy producers slipped with crude prices.

     Weaker demand for coal, iron and other commodities from declining heavy industries led to a slump in imports in China, one of the world’s largest consumers of raw-materials. The nation is Canada’s second-largest trading partner after the U.S. The rising prospect for higher American interest rates led to a slump in financial services shares.

     The Standard & Poor’s/TSX Composite Index fell 70.68 points, or 0.5 percent, to 13,482.62 at 4 p.m. in Toronto. The index has lost 7.9 percent this year, trailing only Singapore and Greece among developed markets.

     Canadian equities have lagged most peers as the country’s resource-dominated market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest rate hike from the Federal Reserve.

     Canadian Pacific Railway Corp. jumped 5.7 percent, the most in two years. The company, the second-biggest railroad in Canada, is exploring a takeover of U.S. carrier Norfolk Southern Corp. according to people familiar with the matter.

     Energy shares and base-metals producers slipped Monday, as nickel fell to the lowest in more than two months and a basket of global commodities tumbled a fourth day. First Quantum Minerals Ltd. and Teck Resources Ltd. retreated 2.7 percent.

     Crude futures in New York slipped below $44 a barrel to the lowest level in two weeks. Oil has slumped more than 40 percent in the past year amid speculation global oversupply will persist. Canadian Natural Resources Ltd. and Suncor Energy Inc. dropped at least 1.3 percent.

     Brookfield Asset Management Inc., Canada’s largest alternative asset manager, lost 5.6 percent for the biggest decline in five years, after an Australian newspaper reported Qube Holdings Ltd. will submit a counter-proposal to Brookfield’s earlier bid for Asciano Ltd., an Australian rail and port operator.

     Financial stocks retreated 1.1 percent as a group, reversing a two-day advance. Royal Bank of Canada and Bank of Nova Scotia, among the nation’s largest lenders, slipped at least 0.8 percent.

     Valeant Pharmaceuticals International Inc. increased 3.7 percent for a second day of gains, after rebounding from a 2013 low. The drugmaker will host an investor call Tuesday to provide an update on its operations including the transition from its prior relationship with specialty pharmacy Philidor. Valeant has lost 68 percent from an Aug. 5 high amid pressure over how it prices its drugs.

US

By Kate Garber and Anna-Louise Jackson

     (Bloomberg) — The Standard & Poor’s 500 Index tumbled the most in more than a month as the possibility that the Federal Reserve will raise interest rates as early as December weighed on equities.

     Investors had shrugged off the threat of higher rates on Friday, focusing instead on a robust jobs report that signaled the U.S. economy may be ready to withstand tighter monetary policy. That sentiment reversed Monday in the absence of any additional data and after American equities ended last week near the highest level in three months.

     “People sort-of stewed on it over the weekend that we’re facing a rate hike in December,” said Robert Pavlik, who helps oversee $9.1 billion as chief market strategist at Boston Private Wealth. “I don’t think it’s the 25 basis points that’s necessarily leading the market down, but what comes after. How fast and furious do the rate hikes come now that this cheap money environment is coming to an end?”

     The S&P 500 slipped 1 percent to 2,078.58 at 4 p.m. in New York, the most since Sept. 28 and its fourth straight drop. The Dow Jones Industrial Average lost 179.85 points, or 1 percent, to 17,730.48. The Chicago Board Options Exchange Volatility Index jumped 15 percent, its biggest increase since September.

     The day’s selloff was broad-based. Multinationals with exposure to a stronger dollar were hit hard, with Caterpillar Inc. sliding 2.6 percent. Macy’s Inc. and Kohl’s Corp. led retailers lower. Mallinckrodt Plc plummeted 17 percent after the drugmaker was mentioned by the stock-commentary site whose scrutiny helped lead to a rout in Valeant Pharmaceuticals International Inc.

     Norfolk Southern Corp. and Apache Corp. rallied on merger speculation, while utility shares had the only gains among 10 S&P 500 groups after plunging 3.6 percent Friday.

     The S&P 500 is coming off its sixth straight weekly gain, a streak that pushed it within 1.5 percent of its May record. The S&P 500’s rebound since suffering its first correction in four years has helped restore almost $2 trillion to the market value of U.S. stocks. 

     “I’m sure a few people will want to use this moment to trim some positions — it’s only prudent,” said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank AG in Bonn, Germany. “We have to consider the levels we’ve reached now, given that the S&P 500 is only just slightly off its record.”

     The benchmark equity gauge rose 1 percent last week even as the best monthly employment report of the year pushed odds for an interest-rate hike in 2015 to as high as 70 percent. The surge in hiring spurred speculation that the world’s largest economy is strong enough to withstand higher borrowing costs.

     Global investors continue to adjust to the increased likelihood that America’s benchmark rate will rise this year, a move that would end an unprecedented era of record-low borrowing costs. The policy-setting Federal Open Market Committee meets in Washington on Dec. 15-16, when it will decide on whether to raise the benchmark federal funds rate for the first time since 2006.

     Federal Reserve Bank of Boston President Eric Rosengren said in remarks today that encouraging U.S. economic data coupled with emerging signs of risk-taking by some investors make it appropriate for the central bank to consider raising rates as soon as next month, while moving gradually thereafter.

     Consumer-discretionary and energy stocks had the biggest declines among 10 groups in the S&P 500. Macy’s and Kohl’s declined more than 5.4 percent after Citigroup Inc. cut its earnings estimates for the companies, saying the industry is suffering from a sales slowdown and inventory glut.

     Priceline Group Inc. dropped 9.6 percent, the most since 2012. The largest U.S. online travel agent gave a fourth-quarter earnings forecast range that trailed analysts’ estimates as it faces competition from Expedia Inc. and Airbnb Inc.

     Energy shares fell 1.5 percent, with Exxon Mobil Corp. and Chevron Corp. losing more than 1.8 percent.

     Mallinckrodt plummeted as much as 26 percent after Citron Research said in a Twitter message that the company has “significantly more downside” than Valeant and is “a far worse offender” of the reimbursement system. The firm is led by short- seller Andrew Left.

     Valeant shares have fallen more than 40 percent since Citron’s report examined the drugmaker’s relationship with specialty pharmacies and questioned whether the company was faking sales through its distribution channel — an allegation Valeant has denied. Valeant rose 4.5 percent today.

     Financial companies slumped 1.2 percent, as JPMorgan Chase & Co. and Bank of America Corp. retreated at least 1.5 percent. The Bloomberg U.S. Airlines Index dropped 1.5 percent while an S&P measure of home builders tumbled 1.6 percent. Technology companies also slid as International Business Machines Corp., Intel Corp. and Microsoft Corp. retreated at least 1.4 percent.

     “I don’t think anyone came into work today figuring that they had to load up on stocks,” Peter Tuz, who helps manage $400 million as president of Chase Investment Counsel Corp. in Charlottesville, Virginia. “With the recovery of the market, there are fewer bargains than there were 6 or 8 weeks ago.”

     Some of the day’s biggest winners were companies tied to acquisition news.

     Norfolk Southern jumped 11 percent, paring a 2.2 percent drop in the Dow Jones Transportation Average, after people familiar with the matter said Canadian Pacific Railway Ltd. is exploring a takeover of the U.S. carrier in a fresh attempt to consolidate the North American industry.

     Apache jumped 13 percent, its biggest jump since 2008, as people familiar with the matter said the oil and natural gas company has received an unsolicited takeover approach.

     Plum Creek Timber Co. climbed 17 percent as Weyerhaeuser Co. agreed to buy the company for about $8.4 billion to create a real estate investment trust that will be the largest private owner of timberland in the U.S.

     Weight Watchers International Inc. added 3.5 percent after Steven A. Cohen’s Point72 Asset Management reported a new stake in the company. Weight Watchers has more than tripled since announcing a partnership with Oprah Winfrey last month. The shares soared 35 percent Friday as quarterly results topped analysts’ estimates.

     Dean Foods Co. gained 7.3 percent, the most in a year. The largest U.S. dairy processor posted third-quarter profit and forecast earnings for the fourth quarter that both topped analysts’ estimates as it benefits from a decline in raw-milk costs.
 

Have a wonderful evening everyone.

Be magnificent!
 

Violence is not merely killing another.

It is violence when we use a sharp word,

when we make a gesture to brush away a person,

when we obey because there is fear.

So violence isn’t merely organized butchery in the name of God,

in the name of society, or country.

Violence is much more subtle, much deeper,

and we are inquiring into the very depths of violence.

Krrishnamurti

As ever,

 

Carolann

 

Change your thoughts and you change your world.

                    -Norman Vincent Peale, 1898-1993

 

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:

This week, USA today featured an article with the headline “Evidence of possible alternate universes,” which I found interesting.  Here it is:

Prepare to have your mind blown.

An astrophysicist says he may have found evidence of alternate or parallel universes by looking back in time to just after the Big Bang more than 13 billion years ago.

While mapping the so-called “cosmic microwave background,” which is the light left over from the early universe, scientist Ranga-Ram Chary found what he called a mysterious glow, the International Business Times  reported.

Chary, a researcher at the European Space Agency’s Planck Space Telescope data center at CalTech, said the glow could be due to matter from a neighboring universe “leaking” into ours, according to New Scientist magazine.

“Our universe may simply be a region within an eternally inflating super-region,” scientist Chary wrote in a recent study in the Astrophysical Journal.

“Many other regions beyond our observable universe would exist with each such region governed by a different set of physical parameters than the ones we have measured for our universe,” Chary wrote in the study.

While the findings sound promising and have already gained the attention of other astronomers, as Russia Today (RT) reported, it could be quite complicated to verify, since the Planck telescope provides limited data for further study.

“Unusual claims like evidence for alternate universes require a very high burden of proof,” Chary noted in the study.

On Nov. 6, 1860, former Illinois congressman Abraham Lincoln defeated three other candidates for the U.S. presidency.

On this day two years ago, Twitter Inc. priced its IPO at $26 a share. The stock popped in its debut, opening at $45.10, up 73% from its offer price.

PHOTOS OF THE DAY

A seagull flies past a statue seen in silhouette at sunset in Marseille, France, Friday. Jean-Paul Pelissier/Reuters

A Qantas Boeing 737-800 plane flies through heavy rain as a storm moves towards the city of Sydney, Australia, Friday. The Australian Bureau of Meteorology issuing a warning for severe thunderstorms with large hailstones, heavy rainfall and damaging winds. David Gray/Reuters

Market Closes for November 6^th, 2015

Market Index	Close	Change
Dow Jones	17910.33	+46.90   +0.26%
S&P 500	2099.20	-0.73   -0.03%
NASDAQ	5147.121	+19.383   +0.38%
TSX	13553.30	-5.48
		-0.04%

International Markets

Market Index	Close	Change
NIKKEI	19265.60	+149.19
		+0.78%
HANG SENG	22867.33	-183.71
		-0.80%
SENSEX	26265.24	-38.96
		-0.15%
FTSE 100	6353.83	-11.07
		-0.17%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.715	1.653
CND. 30 Year Bond	2.415	2.378
U.S.    10 Year Bond	2.3252	2.2395
U.S. 30 Year Bond	3.0861	3.0073

Currencies

BOC Close	Today	Previous
Canadian $	0.75164	0.75957
US $	1.33042	1.31653
Euro Rate 1 Euro=		Inverse
Canadian $	1.42877	0.69991
US $	1.07392	0.93117

Commodities

Gold	Close	Previous
London Gold Fix	1088.90	1106.30
Oil	Close	Previous
WTI Crude Future	44.29	45.88

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks almost erased losses in the final hour of trading as financial services shares rallied after strong jobs data in the U.S. intensified speculation the Federal Reserve will increase rates at its December meeting.

     Equities ended little changed after nearly wiping out a 0.6 percent, as financials rallied on the prospects for higher lending rates. TransCanada Corp. led energy shares lower after the U.S. government rejected the Keystone XL pipeline. U.S., payrolls climbed the most this year, wage growth accelerated and the unemployment rate fell to 5 percent. Canadian employment rose more than economists forecast.

     “We clearly see the Canadian economy is back to expansion mode after a brutal summer. It’s a good sign,” said Barry Schwartz, fund manager at Baskin Wealth Management in Toronto. His firm manages about C$825 million. The Fed raising rates is “probably a done deal,” he said. “It was bound to happen, it’s years in the making.”

     The Standard & Poor’s/TSX Composite Index fell 5.48 points to 13,553.30 at 4 p.m. in Toronto. The index climbed 1.7 percent in October, the most since April. It was nevertheless the worst performance among 24 developed-nation markets in that time, as a gauge of global equities capped its best month in four years.

     Manulife Financial Corp. climbed 3.7 percent, the most in more than two months, and Sun Life Financial Inc. added 2.7 percent as financial services stocks increased 0.7 percent as a group. Insurers typically carry long-duration investments that benefit in times of higher interest rates.                      

     TransCanada declined 4.3 percent after President Barack Obama ended seven years of debate over the Keystone pipeline by rejecting an infrastructure project that swelled into one of the most contentious environmental issues of his presidency.

     TransCanada has slumped 24 percent this year, amid a 17 percent retreat in the S&P/TSX Energy Index. The proposed cross- border pipeline, which would have carried Canadian oil sands to U.S. refineries near the Gulf of Mexico, soured diplomatic relations between Obama and Canada’s previous prime minister Stephen Harper. The incoming Liberal government led by Justin Trudeau is much less wedded to the project.

     Baskin Wealth, Schwartz’s firm, has been expanding its U.S. positions throughout the year with few options for earnings growth in Canada, he said. Schwartz prefers U.S. health-care companies involved in distribution, including pharmacies CVS Health Corp. and Express Scripts Holding Co., as well as financials and technology firms.

     With the U.S. dollar rising on the latest jobs data, Schwartz is hesitant to add U.S. names Friday, and is instead considering Canadian stocks that have shown recent weakness such as Telus Corp. and Magna International Inc.

     “Some of the names that got hurt yesterday, names like Telus and Magna, have attractive entry points,” he said. “I liked the earnings from TMX Group, and if commodity prices recover this thing is going to be on fire.”

     TMX Group Ltd., owner of the Toronto Stock Exchange, added 4.5 percent after reporting better-than-expected third-quarter revenue. Magna, the largest North American auto-parts supplier, slumped the most since 2011 yesterday on weaker quarterly sales. Telus retreated after declaring it will cut 1,500 jobs to reduce costs.

     Valeant Pharmaceuticals International Inc. jumped 5.6 percent, rebounding from a 2013 low.

US

By Kate Garber and Anna-Louise Jackson

     (Bloomberg) — U.S. stocks erased declines in the final hour of trading as the biggest monthly surge in payrolls this year boosted optimism on the economy, even as the Federal Reserve prepared to raise interest rates.

     Sharp gains in bond yields and the dollar separated the session’s biggest winners and losers in equities. Banks rallied as investors bet rising rates will help boost profits, while utilities in the S&P 500 fell the most since August as the group’s dividend payout becomes less attractive compared to Treasury yields. Energy shares followed oil lower as a stronger currency reduces the appeal of dollar-denominated commodities.

     “People need to prepare for a December rate hike,” said John Canally, chief economic strategist at LPL Financial Corp. in Boston. “I’d expect the probability of a December liftoff to go to the low 90s unless something really bad happens between now and then. There’s no soft spot in the economy, that’s over. Things are tightening all around.”

     The Standard & Poor’s 500 Index slipped less than 0.1 percent to 2,099.20 at 4:01 p.m. in New York, after earlier losing 0.8 percent. The Dow Jones Industrial Average added 46.90 points to 17,910.33, after erasing a 95-point slide. Goldman Sachs Group Inc. and JPMorgan Chase & Co. combined to contribute more than 60 points on the Dow. The Nasdaq Composite Index climbed 0.4 percent as semiconductors rallied on results from Qorvo Inc. and Nvidia Corp.

     Data today showed 271,000 jobs were added in October, exceeding the 185,000 predicted in a Bloomberg survey of economists. Wage growth accelerated and the jobless rate fell to 5 percent, a seven-year low. In the wake of sluggish job gains the prior two months, last month’s advance allays concerns that an abrupt hiring slowdown would hinder the expansion’s progress as economies overseas strive to gain traction.

     One of the Federal Reserve’s preconditions for raising rates is further improvement in the labor market, and the latest report showed diminishing slack as the number of Americans working part-time because of a weak economy fell to the lowest since 2008. Fed officials said in October that they would consider a rate increase at their next gathering, and Chair Janet Yellen this week reinforced the view by saying December was a “live possibility.”                          

     Those comments from Yellen helped put the brakes on a rally that had carried the S&P 500 to within 1 percent of its record. The benchmark has risen as much as 13 percent from an August low, with gains in the past two months paced by a rebound in commodity shares after they led declines during a summer selloff sparked by worries that weakness in China’s economy would spread. The index closed Friday with a sixth consecutive weekly gain, extending its longest such streak this year.

     Traders have shifted their bets on a December rise in rates, now pricing in a 68 percent chance the central bank will move at next month’s meeting, up from 56 percent before the jobs report and as low as 27 percent last month.

     In remarks today prepared in advance of the payrolls report, Fed Bank of St. Louis President James Bullard said a stronger labor market and reduced financial market stress are among the factors supporting the case for the Fed to raise rates. Policy makers will have one more monthly employment report to assess before their December meeting.

     “The job gains in October were a blowout,” said Jim McDonald, the chief investment strategist at Chicago-based Northern Trust Corp., which oversees $946 billion. “We took advantage of the weakness of August and September to put money to work in the international markets and in high-yield. We seasonally would expect some strength through the end of the year, but the easy money had been made in the bounce back from the correction.”

     Beyond the jobs data, the U.S. quarterly earnings season is drawing to a close. About 74 percent of S&P 500 companies have beaten earnings estimates, while only 44 percent have topped sales forecasts. Analysts estimate profits dropped 3.8 percent in the third quarter, up from predictions for a 6.1 percent decline two weeks ago.

     “There will also be an earnings drag as rate speculation leads to a stronger dollar, which will weigh on corporate top- line growth,” said Chad Morganlander, a money manager at Stifel, Nicolaus & Co. in Florham Park, New Jersey, which oversees about $170 billion.                       

     Walt Disney Co. rose as much as 3.3 percent after its earnings topped analyst estimates amid stronger profits from its cable networks and movies. Cable networks surprised investors as a highlight, as they lifted profit by 30 percent.

     Qorvo, a communications chipmaker, surged 23 percent after its profit beat estimates. Nvidia rose 14 percent after its fourth-quarter revenue outlook exceeded analysts’ estimates. Stamps.com Inc. soared 38 percent to its highest since the dot- com bust after boosting its 2015 revenue and profit view. TripAdvisor shares fell 6.9 percent after its third-quarter sales missed expectations.

     Six of the S&P 500’s 10 main industries declined Friday, with utilities falling 3.6 percent, the steepest slide since August. Consumer staples lost 1.1 percent. Banks led financial companies higher while semiconductors bolstered technology shares.                       

     Reynolds American Inc., Philip Morris International Inc. and Colgate-Palmolive Co. — all companies with substantial revenue overseas vulnerable to a stronger dollar — fell at least 2 percent. Coca-Cola Co. lost 0.9 percent, and Campbell Soup Co sank 3.2 percent. The stronger greenback can weigh on American multinational companies’ profits when their overseas earnings are converted back to the U.S. currency.

     Kraft Heinz Co. lost 4.5 percent to lead the retreat among consumer staples. The food giant reported a drop in sales and profit for its first quarter since being created in a merger orchestrated by billionaire Warren Buffett and 3G Capital.

     “Multinational companies are going to continue to have a hard time, so we’re concentrating on companies that have U.S.- centric revenue streams,” said Mark Spellman, a fund manager who helps oversee $4.2 billion at Alpine Funds in Purchase, New York. “We’ll continue to look for financials that will benefit from higher rates.”

     Goldman Sachs and JPMorgan Chase added at least 3 percent, the best performers in the Dow, on optimism for stronger profits. Bank of America Corp. and KeyCorp jumped more than 3 percent. The KBW Bank Index gained 2.7 percent and posted its best week since February. Charles Schwab Corp. rallied 6.2 percent, and E*Trade Financial Corp. advanced 5 percent to a four-month high.

     The Chicago Board Options Exchange Volatility Index fell 4.8 percent to 14.33. The measure of market turbulence known as the VIX is hovering near its lowest since August after its biggest monthly drop ever in October. About 7.8 billion shares traded hands on U.S. exchanges, 4 percent above the three-month average.
 

Have a wonderful weekend everyone.

 

Be magnificent!

Being human,

I feel profoundly the necessity of putting an end to violence,

and I will make sure to put an end to it in myself.

Krishnamurti

As ever,

 

Carolann

 

Either write something worth reading or do something worth writing.

                                                  -Benjamin Franklin, 1706-1790

 

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:

Holiday: Sadie Hawkins Day, November 5^th.

Sadie Hawkins, a folk event, made its debut in Al Capp’s Li’l Abner comic strip November 15, 1937.  Sadie Hawkins was the  “homeliest gal in the hills” who grew tired of waiting for the fellows to come a courtin’.   Her father, Hekzebiah Hawkins, a prominent resident  of Dogpatch, was even more worried about Sadie living at home for  the rest of his life, so he decreed the first annual Sadie Hawkins Day, a foot race in which the unmarried gals pursued the town’s bachelors, with matrimony the consequence.  By the late 1930’s the event had swept the nation and had a life o f its own.  Life magazine reported that more than 200 colleges held Sadie Hawkins Day events in 1939, only two years after its inception.  It became a woman-empowering rite at high schools and college campuses, long before the modern feminist movement gained prominence.  The basis of Sadie Hawkins Day is that women and girls take the initiative in inviting the man or boy of their choice out on a date, typically to a dance attended by other bachelors and their aggressive dates.  When Al Capp created the event, it was not his intention to have the event occur annually on a specific date because it inhibited his free-wheeling plotting. However, due to its enormous popularity and the numerous fan letters Capp received, the event became an annual event in the strip during the month of November, lasting four decades.

For more information on Sadie Hawkins, L’ il Abner and Al Capp, see http://www.lil-abner.com.

This day in 1994, George Foreman became the oldest heavyweight champion at age 45 when he defeated 26-year-old Michael Moorer in the 10^th round of their World Boxing Association fight in Las Vegas.

PHOTOS OF THE DAY

The sculpture ‘Le Penseur’ (The Thinker, 1903) by French sculptor Auguste Rodin (1840-1917) is seen in the garden of the Musee Rodin in Paris, France, Thursday. After a complete restoration over the past three years, the Hotel Biron, home of the Rodin Museum since 1919, will reopen its doors to the public on November 12, 2015, the 175th birthday of the famous French sculptor. Philippe Wojazer/Reuters

Turtles crawl to the ocean after being released, as part of conservation efforts, on the beach of Puerto Quetzal in Guatemala, Wednesday.Jorge Dan Lopez/Reuters

Market Closes for November 5^th, 2015

Market Index	Close	Change
Dow Jones	17863.43	-4.15   -0.02%
S&P 500	2101.21	-1.10   -0.05%
NASDAQ	5127.738	-14.741   -0.29%
TSX	13561.58	-100.24
		-0.73%

International Markets

Market Index	Close	Change
NIKKEI	19116.41	+189.50
		+1.00%
HANG SENG	23051.04	-2.53
		-0.01%
SENSEX	26304.20	-248.72
		-0.94%
FTSE 100	6364.90	-47.98
		-0.75%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.653	1.632
CND. 30 Year Bond	2.378	2.362
U.S.    10 Year Bond	2.2395	2.2250
U.S. 30 Year Bond	3.0073	2.9895

Currencies

BOC Close	Today	Previous
Canadian $	0.75957	0.76030
US $	1.31653	1.31528
Euro Rate 1 Euro=		Inverse
Canadian $	1.43286	0.69791
US $	1.08835	0.91882

Commodities

Gold	Close	Previous
London Gold Fix	1106.30	1114.70
Oil	Close	Previous
WTI Crude Future	45.88	46.32

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks retreated as Valeant Pharmaceuticals International Inc. declined to a two-year low and Magna International Inc. tumbled the most since 2011 on weaker quarterly sales.

     Valeant sank 15 percent for a third day of losses, to a September 2013 low. The drugmaker has now lost 70 percent from an Aug. 5 high amid pressure over how it prices its drugs. Magna, the largest North American auto-parts supplier, tumbled 10 percent as sales slumped 7 percent in the third quarter, missing analysts’ estimates. The two companies accounted for almost 70 points of the Standard & Poor’s/TSX Composite Index’s 103.04 point decline.

     The Canadian benchmark equity gauge dropped 0.8 percent to 13,558.78 at 4 p.m. in Toronto. The index climbed 1.7 percent in October, the most since April. It was nevertheless the worst performance among 24 developed-nation markets in that time, as a gauge of global equities capped its best month in four years.

     Valeant, briefly the largest stock in the S&P/TSX by market capitalization earlier this year, plunged a record 49 percent in October after short-seller Citron Research accused Valeant of an Enron-like strategy of recording fake sales using an affiliated pharmacy. Valeant denied the allegation.

     The Quebec-based drugmaker and Turing Pharmaceuticals AG are the focus of two probes in Congress seeking to examine why the companies raised the prices of medications sharply after acquiring them. Jana Partners yesterday disclosed it had sold its stake in Valeant due to concerns about the company’s changing business model.

     Investor Bill Ackman, one of Valeant’s top shareholders, gave Chief Executive Officer Mike Pearson a fresh vote of confidence Thursday. While he disagreed with some of Pearson’s decisions, Ackman said in a letter he felt he was the right CEO for the drugmaker.

     Ackman’s letter came after an earlier interview published late Wednesday in which he told the Wall Street Journal how he has pressed the drugmaker’s executives for answers and has told the company’s lead director that Pearson may need to leave.

     Magna International tumbled 10 percent after blaming weakness in the euro and Canadian dollar against the U.S. dollar for the “significant negative impact” on sales. Foreign currency translation reduced revenue by about $870 million compared with year-ago figures, Magna said.

     Smaller peer Linamar Corp. also tumbled 7.5 percent for the biggest decline in three months after TD Securities analyst Brian Morrison lowered his rating for the stock to a hold from a buy as consumer discretionary shares lost 2.8 percent.

     Magna is among more than 40 companies in the S&P/TSX reporting quarterly earnings today. Penn West Petroleum Ltd. dropped 8.7 percent as revenue slumped. The company suspended its dividend and cut its workforce by about a third during the quarter. Paramount Resources Ltd. plunged the most in almost three decades after reporting a third-quarter loss late yesterday.

     First Quantum Minerals Ltd. slumped 6.8 percent as copper for December delivery fell 2.9 percent in New York, the most in six weeks. Factory orders in Germany, the third-biggest copper user, unexpectedly dropped for a third month, data showed Thursday. Copper has sunk 20 percent this year as slowing Chinese growth cut demand.

     Hydro One Ltd., Ontario’s largest electricity transmission and distribution company, jumped 5.5 percent in its trading debut. The Ontario government raised C$1.66 billion from the initial public offering, at a price of C$20.50 a share. The stock trades under the “H” ticker on the Toronto Stock Exchange.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks closed little changed near a three-month high as the specter of an interest rate increase this year left investors looking to Friday’s jobs report for fresh signs the economy is strong enough to withstand tightening.

     Equities swung between gains and losses in the session as a rally in banks helped erase declines sparked by a renewed selloff in embattled drugmaker Valeant Pharmaceuticals International Inc. Weakness in commodity producers also held back stocks for a second day.

     The Standard & Poor’s 500 Index slipped 0.1 percent to 2,099.93 at 4 p.m. in New York, trimming a drop of as much as 0.6 percent. The Dow Jones Industrial Average declined 4.15 points, or less than 0.1 percent, to 17,863.43. The Nasdaq Composite Index declined 0.3 percent, dragged lower as Qualcomm Inc. and Celgene Corp. fell more than 5 percent after their results disappointed.

     “The only thing that’s certain today is that there are going to be significant price swings in both directions,” said Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles. “If the implications from the jobs report tomorrow do imply a December rate hike, it could weigh on the market. The Valeant debacle continues to weigh on health-care.”

     Equities trimmed a weekly advance after reaching a three- month high on Tuesday, stalling a rally that boosted the S&P 500 by as much as 13 percent from an August low and carried the benchmark to within 1 percent of its record. Gains in the past two months have been paced by a rebound in commodity shares, after they led declines during a summer selloff sparked by worries that weakness in China’s economy would spread.

     Stocks are coming off their strongest month in four years, bolstered as central banks in Europe and China pledged more stimulus and the Federal Reserve refrained from boosting interest rates in October. Traders now price in a 56 percent chance the Fed will increase rates at next month’s meeting, up from 50 percent earlier this week, after Fed Chair Janet Yellen said yesterday the economy is performing well enough to possibly raise rates in December.

     Fed Bank of New York President William Dudley backed Yellen’s stance that December is a “live possibility,” while Fed Vice Chairman Stanley Fischer expressed confidence that inflation isn’t too far below the central bank’s goal. Fed Bank of Atlanta President Dennis Lockhart said today liftoff “will soon be appropriate,” in remarks prepared for delivery today in Bern, Switzerland.

     Tomorrow’s report on payrolls and unemployment will garner even more scrutiny as it feeds into the Fed’s assessment of the economy’s strength. A report today showed the number of Americans filing for unemployment benefits rose more than economists forecast to a five-week high, representing a pause in the recent progress that left claims at their lowest level since 1973.                       

     Mixed earnings reports provided little direction for equities today. Facebook Inc. rose 5.2 percent to a record after posting higher-than-expected revenue and profit. Ralph Lauren Corp. surged 16 percent, the most in seven years after its earnings beat estimates.

     Qualcomm slid 15 percent after the chipmaker’s sales and profit forecasts fell short of some analysts’ estimates, underscoring its struggle to collect technology-licensing fees for smartphones sold in China. CF Industries Holding Inc., the largest U.S. producer of nitrogen fertilizer, fell 9.5 percent after posting lower-than-expected earnings.

     With more than 80 percent of S&P 500 companies having reported, about three-quarters have beaten earnings estimates, while only 45 percent have topped sales forecasts. Analysts estimate profits dropped 3.9 percent in the third quarter, up from predictions for a 6.1 percent decline a week ago.

     The Chicago Board Options Exchange Volatility Index fell 3 percent Thursday to 15.05, down for the first time in three days. The measure of market turbulence known as the VIX posted its biggest monthly drop ever in October. About 7.3 billion shares traded hands on U.S. exchanges, in line with the three- month average.

     Seven of the S&P 500’s 10 main industries declined, with energy, utilities and raw-materials the worst performers. Financial and consumer discretionary shares rose, while industrials were little changed.

     Energy companies in the benchmark fell 1 percent in volatile trading, led by Transocean Ltd.’s 8.2 percent drop. A plan to slash more than $1 billion in costs next year wasn’t enough to excite investors of the world’s largest offshore rigs provider as signs warn of more pain ahead. Chevron Corp. and Exxon Mobil Corp. retreated more than 1.3 percent as crude fell again after its worst drop in three weeks yesterday.                       

     Valeant lost 14 percent after earlier sliding more than 20 percent. The shares fell below $80 for the first time in more than two years as investors grappled with the drugmaker’s mounting challenges and a top shareholder, Bill Ackman, discussed how his confidence in the company’s leadership had briefly wavered. Ackman later expressed support for Chief Executive Mike Pearson.

     Endo International Plc sank 15 percent, the steepest decline among health-care companies in the S&P 500 and the company’s biggest drop since 2009, despite earnings and sales that exceeded analysts’ estimates. Celgene lost 5.3 percent, the most this year, after quarterly sales were short of analysts estimates as the company’s top cancer drugs didn’t grow as fast as expected. The Nasdaq Biotechnology Index slumped 1.9 percent.

     Banks climbed amid speculation that rising bond yields will help boost profitability, as the U.S. 10-Year Treasury yield reached a seven-week high. Bank of America Corp. increased 1.8 percent to its highest since Aug. 19. State Street Corp., Bank of New York Mellon Corp. and Comerica Inc. added more than 1.6 percent. The KBW Bank Index gained 1 percent, near its highest level in 11 weeks.

     Ralph Lauren’s 15 percent rally led a group of apparel and accessory companies higher. Fossil Group Inc. climbed 3.1 percent, the most in a month, while PVH Corp. and Michael Kors Holdings Ltd. added more than 2.1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

What is then worth having?

Mukti, freedom.

Swami Vivekananda

As ever,

 

Carolann

 

There are no traffic jams along the extra mile.

                         -Roger Staubach, 1942-

 

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 1924, King Tut’s tomb was found.

Also on this day in 1948, T.S. Eliot won the Nobel Prize in literature for his effect on the direction of modern poetry.

The Poem:

Natasha Tretheway writes, “The biologist E.O. Wilson wrote, ‘Homo sapiens is the only species to suffer psychological exile.’  That feeling of disconnection haunts this poem.  Without punctuation, which would separate or halt the fluid movement of thought, the lines seem to connect the past with speakers present longing for what is ineffable.”

After the Voices

   -by W.S. Merwin

Youth is gone from the place where I was young
even the language that I heard here once
its cadences that went on echoing
a youth forgotten and the great singing
of the beginning have fallen  silent
with the voices that were the spirit of them
and their absences were no more noticed
than were those of the unreturning birds
each spring until there were no words at all
for what was gone but it was always so
I have no way of telling what I miss
I am only the one who misses it.

Natasha Tretheway served as the poet laureate of the United States from 2012 to 2014.  W.S. Merwin has written many collection s of poetry, including most recently, “The Moon Before Morning,” published last year by Copper Canyon Press.

PHOTOS OF THE DAY

Sun shines through a Japanese Maple tree at Charles Baber Cemetery in Pottsville, Pa., on Wednesday. The cemetery is the largest green space and also serves as a garden park with tree-lined walking paths, a small spring fed pond and a meditation area. Jacqueline Dormer/The Republican-Herald/AP

A boat makes its way through a sandstorm in the Mediterranean Sea, in Tel Aviv, Israel, Wednesday. A thick sandstorm cloaked the Middle East on Wednesday, clouding skies across the region. In Israel, travel was disrupted for thousands of people when domestic flights to the resort town of Eilat were canceled because of the weather, as the haze shrouded parts of Israel. Sebastian Scheiner/AP

Breeder Siegfried Marth rounds up a gaggle of geese in a pasture in Strem in Austria’s Burgenland province, Wednesday. Marth is raising some 700 geese organically for the traditional ‘Martin Goose’ (Martini Gansl) dinner in celebration of St. Martin each year. The feast of St. Martin of Tours (also called ‘Martini’) marks the time when new wines are tasted, cattle are butchered and geese are at their prime. This feast is celebrated in German-speaking Europe on November 11 usually with a roast goose. Heinz-Peter Bader/Reuters

Market Closes for November 4^th, 2015

Market Index	Close	Change
Dow Jones	17867.58	-50.57   -0.28%
S&P 500	2102.32	-7.47   -0.35%
NASDAQ	5142.480	-2.646   -0.05%
TSX	13661.82	-48.49
		-0.35%

International Markets

Market Index	Close	Change
NIKKEI	18926.91	+243.67
		+1.30%
HANG SENG	23053.57	+485.14
		+2.15%
SENSEX	26552.92	-37.67
		-0.14%
FTSE 100	6412.88	+29.27
		+0.46%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.632	1.615
CND. 30 Year Bond	2.362	2.354
U.S.    10 Year Bond	2.2250	2.2123
U.S. 30 Year Bond	2.9895	2.9960

Currencies

BOC Close	Today	Previous
Canadian $	0.76030	0.76543
US $	1.31528	1.30645
Euro Rate 1 Euro=		Inverse
Canadian $	1.42908	0.69975
US $	1.08652	0.92037

Commodities

Gold	Close	Previous
London Gold Fix	1114.70	1123.10
Oil	Close	Previous
WTI Crude Future	46.32	47.90

Market Commentary:

Canada

By Kate Garber

     (Bloomberg) — Canadian stocks slipped after two days of gains, as a rally in energy producers stalled and Valeant Pharmaceuticals International Inc. resumed its decline.

     The pullback in equities comes amid a slide in global shares sparked by speculation the Federal Reserve is poised to raise rates this year. Data today indicated that Canada’s imports fell for the first time in five months, narrowing the nation’s merchandise trade deficit for September, confirming that the world’s 11th largest economy is finding its footing after lower oil prices shocked the economy in the first half of the year.

     The Standard & Poor’s/TSX Composite Index fell 48.49 points, or 0.4 percent, to 13,661.82 at 4 p.m. in Toronto. The Canadian benchmark equity gauge climbed 1.7 percent in October for its best performance since April, though it trailed gains among 24 developed markets.

     Energy producers in the index fell 0.5 percent after a two- day rally added 3.3 percent, with crude in the U.S. tumbling 3.3 percent to settle at $46.32 a barrel. Valeant lost 5.1 percent after being named as the focus of a probe in the U.S. Congress.

     Information technology stocks led advances Wednesday, as CGI Group Inc. jumped 4.3 percent after an analyst upgrade. Pharmaceutical company ProMetic Life Sciences Inc. led the index with a 9.5 percent gain. Miner First Quantum Minerals Ltd. jumped 3.8 percent for a fourth straight day of gains.

     The trade data was tempered by an announcement from the Petroleum Services Association of Canada on Tuesday that Canadian oil companies will reduce drilling activities next year as crude oil prices struggle around $50 a barrel. Canada’s energy sector is a key component of its economy.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks retreated from a three-month high, after data on payrolls and remarks from Federal Reserve Chair Janet Yellen lifted bets that the central bank is closer to raising interest rates.

     Yellen’s comment that December remains a “live possibility” for a rate increase put the brakes on a rally that had carried the Standard & Poor’s 500 Index to within 1 percent of its record. Earnings news also weighed on sentiment as disappointing results from Time Warner Inc. and 21st Century Fox Inc. sent media companies to their steepest decline since August. Energy shares fell for the first time in six sessions. Facebook Inc. rose in late trading following its earnings report after markets closed.

     The S&P 500 slipped 0.4 percent to 2,102.47 at 4 p.m. in New York, after yesterday reaching the highest level since July. The Dow Jones Industrial Average declined 51.18 points, or 0.3 percent, to 17,866.97. The Nasdaq Composite Index fell 0.2 percent. About 7.3 billion shares traded hands on U.S. exchanges, in line with the three-month average.

     “We’ve come back a long way since the end of September, but we’re not going to go straight back to a record,” said Thomas Garcia, head of equity trading at Thornburg Investment Management Inc. in Santa Fe, New Mexico. “Investors are waiting to get more data points this week to assess a potential rate hike in December.”

     Fed Chair Yellen, speaking before the House Financial Services Committee, said an improving economy has set the stage for a December interest-rate increase if economic reports continue to assure policy makers that inflation will accelerate over time. No decision has yet been made on the timing of a rate increase, she cautioned.

     Following Yellen’s remarks, Fed Bank of New York President William Dudley said at press briefing he “completely” agrees with Yellen that December is “a live possibility” for liftoff on rates. Vice Chair Stanley Fischer is scheduled to speak tonight. Traders now price in a 58 percent chance the central bank will increase rates at its December meeting, up from 50 percent yesterday and 34 percent last week before its October gathering.

     As policy makers look for more progress in the labor market, a report today showed companies added 182,000 workers to payrolls in October, signaling steady improvement. Separate data showed the U.S. trade gap shrank in September to a seven-month low, while, according to another gauge, service producers unexpectedly expanded in October at the second-fastest pace in a decade.

     The ADP jobs report today is a precursor to Friday’s government data, in which economists forecast the economy added 182,000 jobs with an estimated 169,000 added to private payrolls. The unemployment rate is expected to slip to 5 percent from 5.1 percent in September.

     Some 24 members of the S&P 500 are scheduled to report earnings Thursday, including Celgene Corp., Walt Disney Co. and Kraft Heinz Co. With 80 percent of the benchmark’s companies now in the books this season, about 74 percent have beaten earnings estimates, while only 45 percent have topped sales forecasts. Analysts estimate profits dropped 3.9 percent in the third quarter, up from predictions for a 6.1 percent decline a week ago.

     Facebook rose 1.8 percent at 4:35 p.m., as it notched another quarter of revenue that beat estimates after stepping up its mobile-advertising efforts. Profit also exceeded analysts forecasts.

     Wednesday’s retreat for the S&P 500 was the first in three days, and follows a 13 percent climb from the bottom of an August selloff that was sparked by China’s surprise currency devaluation. Energy and commodity producers, two of the biggest sufferers in the third-quarter selloff, have paced the rebound.

     The Chicago Board Options Exchange Volatility Index rose 6.7 percent Wednesday to 15.51, up for the fourth time in five sessions and reversing an earlier 4 percent decline. The measure of market turbulence known as the VIX posted its biggest monthly drop ever in October.

     Eight of the S&P 500’s 10 main groups fell, with energy shares the biggest decliners. Consumer discretionary and raw- material companies lost 0.7 percent. Utilities and technology shares were the session’s only gainers.

     Energy companies in the benchmark fell 1 percent amid a 3.3 percent drop in the price of crude oil. It was the resource’s biggest decline in three weeks after government data showed that U.S. inventories climbed.

     Chesapeake Energy Corp. lost 2 percent, paring an earlier 8.6 percent slide, after saying a $5.4 billion writedown in the value of oil and natural gas fields wiped out third-quarter profits, and more charges are coming because the company sees no sign of a rebound in energy prices. Chevron Corp. and Exxon Mobil Corp. lost at least 1 percent.

     Time Warner dropped as much as 10 percent after its 2016 earnings forecast fell short of analysts’ estimates, dragging down other big media companies. Walt Disney Co. dropped 2 percent, while Viacom Inc. lost 6.6 percent. Rupert Murdoch’s 21st Century Fox, which posted lower-than-estimated quarterly revenue, fell 5.2 percent.

     Cerner Corp. dropped 6.8 percent, the most among health- care companies and its biggest drop since August 2011, after the company reported earnings that fell short of analyst estimates. Regeneron Pharmaceuticals Inc. slid 2.4 percent, even after its earnings report came in better than forecast. Pfizer Inc. and UnitedHealth Group Inc. lost at least 1.5 percent to pace declines in the group.                       

     Internet companies were among the session’s best performers, led by gains of more than 2.5 percent in Amazon.com Inc. and Netflix Inc., with Amazon rising to an all-time high. Facebook Inc. rose 1.4 percent before its earnings report, and Google parent Alphabet Inc. added 0.9 percent to a record. The Nasdaq Internet Index climbed 0.7 percent, also to an all-time high.

     Michael Kors Holdings Ltd. rallied 8.3 percent, the most in three months, after the seller of luxury handbags and clothing posted second-quarter profit that topped analysts’ estimates as new retail locations boosted sales.

     Range Resources Corp. jumped 10 percent, the best performer in the S&P 500 and the company’s strongest gain in more than four years, after announcing plans to slash its debt by almost a quarter through the sale of Virginia natural gas wells.

 

Have a wonderful evening everyone.

 

Be magnificent!

We have at the present moment everybody claiming the right of conscience

without going through any discipline whatsoever

that here is so much untruth being delivered to a bewildered world.

Truth is not to be found by anybody who has not got a sense of humility.

If you would swim on the bosom of this ocean of Truth

you reduce yourself to a zero.

Mahatma Gandhi

As ever,

 

Carolann

 

Imagination is the highest kite one can fly.

                    -Lauren Bacall, 1924-2014

 

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 November 3^rd, 1874, Francis Kilvert wrote in his Diary:

I went into Bowood Park by the Studey Gate and turned sharp to the left down a drive that brought me soon into the very heart and splendour of the beeches.  As the sun shone through the roof of beech boughs overhead the very air seemed gold and scarlet and green and crimson in the deep places of the wood and the red leaves shone brilliant standing out against the splendid blue of the sky.  A crowd of wood pigeons rose from the green and misty azure hollows of the plantation and flapped swiftly down the glades, the blue light glancing off their clapping wings.  I went by the house down to the lakeside and crossed the water by the hatches above the cascade.  From the other side of the water the lake shone as blue as the sky and beyond it rose from the water’s edge the grand bank of sloping woods glowing with colours, scarlet, gold, orange and crimson and dark green.  Two men were fishing on the further shore of an arm of the lake and across the water came the hoarse belling of a buck while a coot fluttered skimming along the surface of the lake with a loud cry and rippling splash.

  –Robert Francis Kilvert (3 December 1840 – 23 September 1879), always known as Francis, or Frank, was an English clergyman remembered for his diaries reflecting rural life in the 1870s, which were published over fifty years after his death.

Bowood Woodland Gardens were named  “Garden of the Year for 2014.”

PHOTOS OF THE DAY

The Northern Lights, or Aurora Borealis, appear over Ludington State Park at about 2:40 a.m. on Tuesday in Ludington, Mich. Joel Bissell/MLive.com/AP

People take pictures during the opening ceremony Tuesday of Rome’s Trevi Fountain after it was restored. Italian fashion house Fendi is one of the luxury companies that stepped in to prop up Italy’s crumbling monuments as public funding for their upkeep dwindled. Alessandro Bianchi/Reuters

Market Closes for November 3^rd, 2015

Market Index	Close	Change
Dow Jones	17918.15	+89.39   +0.50%
S&P 500	2110.01	+5.96   +0.28%
NASDAQ	5145.125	+17.980   +0.35%
TSX	13715.56	+92.55
		+0.68%

International Markets

Market Index	Close	Change
NIKKEI	18683.24	-399.86
		-2.10%
HANG SENG	22568.43	+198.39
		+0.89%
SENSEX	26590.59	+31.44
		+0.12%
FTSE 100	6383.61	+21.81
		+0.34%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.615	1.578
CND. 30 Year Bond	2.354	2.328
U.S.    10 Year Bond	2.2123	2.1799
U.S. 30 Year Bond	2.9960	2.9509

Currencies

BOC Close	Today	Previous
Canadian $	0.76543	0.76350
US $	1.30645	1.30975
Euro Rate 1 Euro=		Inverse
Canadian $	1.43205	0.69830
US $	1.09614	0.91230

Commodities

Gold	Close	Previous
London Gold Fix	1123.10	1134.00
Oil	Close	Previous
WTI Crude Future	47.90	46.14

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day, extending last month’s rally, with energy companies advancing as oil climbed to a three-week high and as fertilizer makers gained.

     Cenovus Energy Inc. and Crescent Point Energy Corp. paced an increase among energy stocks, rallying at least 5.5 percent. West Texas Intermediate oil futures added 3.8 percent in New York on speculation U.S. refineries increased crude demand for a third week and on supply risks from Brazil to Libya.

     The Standard & Poor’s/TSX Composite Index rose 87.30 points, or 0.6 percent, to 13,710.31 at 4 p.m. in Toronto. The Canadian benchmark equity gauge climbed 1.7 percent in October, the best since April. It was nevertheless the worst performance among 24 developed-nation markets in that time, as a gauge of global equities capped its best month in four years.

     Canadian energy stocks jumped 2.3 percent, to a two-week high, the most among 10 industries in the S&P/TSX. An Energy Information Administration report Wednesday is expected to show crude stockpiles rose by the smallest amount in six weeks while gasoline supplies fell.

     Also, Libya’s Tripoli-based National Oil Corp. declared force majeure due to a “deteriorated security situation,” allowing it to suspend deliveries on crude shipments. In Brazil, oil workers are on strike in the Campos Basin, as workers demand Petroleo Brasileiro SA reverse spending cuts and halt an asset sale.

     Fertilizer producers Potash Corp. of Saskatchewan Inc. and Agrium Inc. increased at least 2 percent after U.S. producer Mosaic Co., the largest maker of potash, told investors it will continue to manage supply to stabilize prices and that inventory levels are falling in North America. Most of the new potash supply planned by the industry is still years away from reaching the market, Mosaic Chief Executive Officer Joc O’Rourke said during a Tuesday conference call.

     Consumer staples added 1.7 percent, led by a 3.8 percent climb by Alimentation Couche-Tard Inc., the most in two months, after RBC Capital Markets raised its rating on the shares to the equivalent of a buy.

     TransCanada Corp. rose 0.4 percent after requesting to pause a U.S. review of its long-delayed Keystone XL oil pipeline. The Calgary-based company asked Secretary of State John Kerry in a letter Monday to suspend assessment of the $8- billion project while awaiting results of a separate review in Nebraska.

US

By Joseph Ciolli and Kate Garber

     (Bloomberg) — U.S. stocks extended a rally, with the Standard & Poor’s 500 Index reaching a three-month high, as beaten-down commodity producers continued to pace the recovery from a third-quarter rout.

     Chevron Corp. and Exxon Mobil Corp. gained more than 1.8 percent as crude oil climbed to a three-week high. The energy group has rebounded 22 percent from an August low. Copper producer Freeport-McMoRan Inc. increased 5 percent today, while raw-material companies in the benchmark index have surged nearly 18 percent in the last five weeks. Gains have come as the Federal Reserve kept interest rates pinned near zero and other central banks signaled their willingness to boost stimulus.

     The S&P 500 rose 0.3 percent to 2,109.79 at 4 p.m. in New York, to close 1 percent below its all-time high set in May. The Dow Jones Industrial Average added 89.39 points, or 0.5 percent, to 17,918.15 after yesterday erasing its loss for the year. The Nasdaq 100 Index, the first major U.S. stock gauge to retake a multiyear high established earlier in 2015, climbed 0.3 percent to a record for the first time since the dot-com bubble.

     “We’re back to where we were before that downturn took place, with reasonable earnings, modest growth and low interest rates,” said Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates Inc. in Bethlehem, Pennsylvania. “That’s a backdrop that’s allowing upward momentum to re-enter the market. All of the fears built into the market in August and September haven’t come to fruition.”

     The S&P 500 has rallied 13 percent since bottoming amid an August selloff that sent the benchmark into its first correction in four years. Fading concern that China’s slowdown will spread, optimism for further stimulus from central banks overseas and better-than-expected U.S. corporate earnings have all have a hand in propelling the recovery.

     As the Fed boosted prospects of an interest-rate increase last month, investors continue to look to data to gauge whether the world’s largest economy can withstand higher borrowing costs. A report today showed factory orders slipped more than expected in September, while the prior month’s decline was steeper than previously reported. That comes a day after separate data showed manufacturing activity remained stuck in neutral in October.

     Traders are pricing in a 50 percent chance of liftoff at the Fed’s December meeting. Fed Chair Janet Yellen, Vice Chair Stanley Fischer and New York Fed’s William Dudley are all scheduled to deliver remarks on Wednesday.

     Investors will also look to earnings for a read on the health of the economy. Time Warner Inc., Allergan Plc and Facebook Inc. are among more than 100 S&P 500 companies releasing results this week. Of those that have reported this season, about 74 percent exceeded profit projections, while 56 percent missed sales forecasts. Analysts now estimate earnings dropped 3.9 percent in the third quarter, up from predictions for a 6.1 percent decline a week earlier.

     The Chicago Board Options Exchange Volatility Index rose 2.8 percent Tuesday to 14.54, up for the third time in four sessions and reversing an earlier 2.4 percent decline. The measure of market turbulence known as the VIX posted its biggest monthly drop ever in October. About 7.5 billion shares traded hands on U.S. exchanges today, in line with the three-month average.

     Energy companies led gains among the S&P 500’s 10 main groups for a third session as oil rallied for the fourth time in five days. Shares of consumer staples and phone companies declined the most.

     “When you see energy and cyclicals continue to rally like this it’s because they’re under-owned sectors,” said Michael Antonelli, an institutional equity sales trader at Robert W. Baird & Co. “They’re the sectors that were left for dead. When you get these pain-trade rallies like we’re seeing right now, those are the sectors that people go to because they’re under- owned.”

     Visa Inc., Apple Inc. and Microsoft Corp. increased more than 1.1 percent to help send technology companies in the benchmark index to a 15-year high. The sector is up about 19 percent from an August low, with the rebound boosted last month by stronger-than-expected profits at Microsoft and Google parent Alphabet Inc.

     Consumer discretionary shares reached a record, with Wynn Resorts Ltd. up 2.9 percent, and L Brands Inc. rising 3 percent to an all-time high as the owner of the Victoria’s Secret lingerie brand posted stronger-than-expected preliminary results.

     Diamond Offshore Drilling Inc. and Consol Energy Inc. increased more than 4.8 percent, with both extending their two- day climb to at least 18 percent. The energy group has kicked off November with a 5 percent rally, reaching the highest level since July 17.

     Mosaic Co. gained 5.9 percent, its strongest advance in four years, to lead raw-materials higher. The fertilizer maker posted a better-than-estimated quarterly profit, while it also trimmed its full-year outlook on capital expenditures. Alcoa Inc. and Monsanto Co. rose more than 2.2 percent.                         

     King Digital Entertainment Plc jumped 15 percent to its highest in more than a year after the maker of the Candy Crush game agreed to a $5.9 billion takeover from Activision Blizzard Inc. Activision advanced 3.6 percent to an all-time high. Mobile-game maker Zynga Inc. climbed 2.5 percent.

     Archer-Daniels-Midland Co. lost 6.8 percent, the most in four years, to drag on consumer staples. The world’s largest corn processor reported third-quarter earnings that missed analysts’ estimates as ethanol margins shrank and the stronger dollar curbed U.S. exports of the grain. Kellogg Co. slumped 3.6 percent as third-quarter revenue trailed estimates after sales of breakfast foods slumped and currency fluctuations ate into revenue.

     American International Group Inc. lost 4.4 percent, its biggest drop in two months, after reporting a third-quarter loss and lower-than-expected operating income. Chief Executive Officer Peter Hancock also dismissed activist investor Carl Icahn’s proposal to split the company into three insurers.

     Martin Marietta Materials Inc. slumped 8.5 percent, the most since 2008. The largest U.S. producer of crushed stone reported third-quarter profit and sales that missed analysts’ estimates on a sluggish nonresidential market.

     Fidelity National Information Services Inc. tumbled 12 percent, the worst performance in the S&P 500. The payment services provider fell the most in 13 years after third-quarter revenue missed expectations while earnings were in line.
 

Have a wonderful evening everyone.

 

Be magnificent!

When you abandon every desire that rises up within you,

and when you become content with things as they are, then you experience inner peace.

When your mind is untroubled by misfortune, when you desire no pleasures,

when your emotions are tranquil, and when you are free from fear and anger,

then you experience inner calm.  When you are free from all attachments,

when you are indifferent to success and failure,

then you experience inner serenity.

When you can withdraw your senses from pleasures of the senses,

just as a tortoise withdraws its limbs,

then you experience inner wisdom.

The Bhagavad Gita

As ever,

 

Carolann

 

Your attitude, not your aptitude, will determine your altitude.

                                                   -Zig Ziglar, 1926-2012

 

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:

Today is:
All Soul’s Day today; Christian religions.
Day of the Dead (Dia de los Muertos), Mexico.

A day to remember the dead and celebrate their lives.

November (Latin “nine”).  The ninth month on the ancient Roman Calendar when the year began in March.  The old Dutch name was Slaghtmaand, “slaughter month,” the time when the beasts were slain and salted down for winter use.  The Anglo-Saxon name was similar as Blotmonath, literally “blood month.”   Another Saxon mane was Windmonath, “wind month”, when fishermen beached their boats and stopped fishing until the next spring.  The equivalent in the French Revolutionary calendar was Brumaire, “mist month,” corresponding to the period from October 23^rd-November 21^st.

PHOTOS OF THE DAY

A musician plays his violin next to a depiction of La Santa Muerte (Saint Death) at a shrine during Day of the Dead celebrations in Ciudad Juarez, Mexico, Monday. The saint is often depicted as a skeletal ‘grim reaper’ and followers leave offerings of tequila, rum, beer, cigarettes, cash, flowers and candy at altars adorned with rosaries and candles. Jose Luis Gonzalez/Reuters

Indian Christians pay tribute at the graves of their loved ones on All Souls Day in Kolkata, India, Monday. Friends and families gather in cemeteries to offer prayers and to decorate graves with candles and flowers. Bikas Das/AP

The sun sets behind the Houses of Parliament in London Monday. Toby Melville/Reuters

Market Closes for November 2^nd, 2015

Market Index	Close	Change
Dow Jones	17828.76	+165.22   +0.94%
S&P 500	2103.58	+24.22   +1.16%
NASDAQ	5127.145	+73.396   +1.45%
TSX	13620.30	+91.13
		+0.67%

International Markets

Market Index	Close	Change
NIKKEI	18683.24	-399.86
		-2.10%
HANG SENG	22370.04	-270.00
		-1.19%
SENSEX	26559.15	-97.68
		-0.37%
FTSE 100	6361.80	+0.71
		+0.01%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.578	1.543
CND. 30 Year Bond	2.328	2.306
U.S.    10 Year Bond	2.1799	2.1439
U.S. 30 Year Bond	2.9509	2.9262

Currencies

BOC Close	Today	Previous
Canadian $	0.76350	0.76516
US $	1.30975	1.30691
Euro Rate 1 Euro=		Inverse
Canadian $	1.44275	0.69312
US $	1.10155	0.90781

Commodities

Gold	Close	Previous
London Gold Fix	1134.00	1148.60
Oil	Close	Previous
WTI Crude Future	46.14	46.59

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, after posting the best gain in six months in October, as Valeant Pharmaceuticals International Inc. rebounded from its worst-ever monthly loss amid intense scrutiny over its business practices.

     Valeant rallied 9.1 percent, the most in a month, after stock commentary site Citron Research said it won’t release new allegations against the drugmaker. Penn West Petroleum Ltd. and Potash Corp of Saskatchewan Inc. rallied to lead commodities producers higher as factory data in Germany, Italy and the U.S. topped estimates, overshadowing a third straight monthly contraction in Chinese manufacturing data.

     The Standard & Poor’s/TSX Composite Index rose 93.84 points, or 0.7 percent, to 13,623.01 at 4 p.m. in Toronto. The Canadian benchmark equity gauge climbed 1.7 percent in October, the best since April. It was nevertheless the worst performance among 24 developed-nation markets in that time, as a gauge of global equities capped its best month in four years.

     Equities rose around the world again on Monday, with the MSCI All-Country World Index adding 0.5 percent. Manufacturing in the euro area unexpectedly accelerated in October, to 52.3 from 52.0 in September. American manufacturing was little- changed at 50.1, just ahead of the median forecast of 50 in a Bloomberg survey of economists.

     China’s official purchasing managers index remained at 49.8 in October, compared with an estimate of 50, the line between expansion and contraction. China is Canada’s largest trading partner after the U.S. and one of the world’s most important resource consumers.

     Canadian energy and raw-materials stocks climbed at least 1.1 percent despite a decline in commodities prices. The two industries, still among the worst-performing in the S&P/TSX for the year, rallied at least 7 percent in October to lead the index.

     Gold producers climbed 7.8 percent last month, the most since January, as weakening global growth, including in Europe and China, dimmed speculation of a rate increase. The probability that U.S. policy makers will increase borrowing costs has since risen to 50 percent according to futures data after officials signaled last week a December increase remains on the table.

     Valeant rebounded from a record 49 percent plunge in October. On Oct. 21, Citron accused Valeant of an Enron-like strategy of recording fake sales using an affiliated pharmacy, Philidor Rx Services, to store inventory and record those transactions as sales. Valeant shares plummeted 28 percent in one day. The company has denied the allegation.

US

By Joseph Ciolli

     (Bloomberg) — Another step in the recovery from this summer’s equity meltdown occurred Monday as a broad advance in U.S. stocks pushed the Nasdaq 100 Index above its July high and toward record territory.

     The index’s 1.2 percent advance extended its rally from the Aug. 25 trough to 17 percent, making it the first major index of U.S. stocks to retake a multiyear high established earlier in 2015. The Standard & Poor’s 500 Index remains more than 1 percent from its May 21 peak of 2,130.82, while the Dow Jones Industrial Average was 2.6 percent from its last record.

     Concerns ranging from weakening Chinese growth to stress in credit markets and stagnating corporate earnings pushed the Nasdaq 100 down 14 percent over a one-month stretch starting July 20. The nine-week rebound came as the Federal Reserve held off on interest rate increases and companies including Amazon.com Inc., Microsoft Corp. and Google parent Alphabet Inc. posted sales and profits that beat analyst estimates.

     Gains in the index have come in its biggest computer and software companies. Since the Aug. 25 low, Amazon is up 35 percent, Microsoft has added 32 percent and Facebook has jumped 24 percent. The gauge’s biggest member, Apple Inc. with a 12.9 percent weighting, has advanced 17 percent after tumbling 21 percent in the summer rout.

     “Today some of the biggest losers of the selloff have finally joined the party and are leading the way,” said Randy Warren, who manages more than $100 million at Exton, Pennsylvania-based Warren Financial Service & Associates Inc. “The selloff that we saw was a normal, healthy pullback for the market that didn’t seem to scare too many people off and ultimately served as a buying opportunity.”

     The S&P 500 added 1.2 percent to 2,103.94 at 4 p.m. in New York, the highest level since Aug. 10 — the day before China’s surprise devaluation of its currency sparked turmoil on global financial markets. The Dow Jones Industrial Average gained 165.22 points, or 0.9 percent, to 17,828.76. The Nasdaq Composite Index rallied 1.5 percent.

     While the broader Nasdaq index eclipsed its dot-com peak in April, its 100-stock sister fell just short. It closed Monday less than a point below its record on March 27, 2000. For 2015, the Nasdaq 100 has jumped 11 percent, extending its gain from the end of 2011 to 107 percent.

     U.S. stocks joined a global rally in stocks Monday, as signs of softer manufacturing in China failed, for one day at least, to quell demand from equity investors who instead looked for signs of strength elsewhere.

     “The global data today shows stable economic conditions, which is improving sentiment,” said Mark Luschini, chief investment strategist in Philadelphia at Janney Capital Management LLC, which oversees about $68 billion. “M&A activity is always a good litmus test for the sentiment of companies and usually speaks well to market conditions, and we’ve seen some big deals lately.”

     All 10 main S&P 500 groups rose, with energy and health- care stocks climbing at least 2 percent. Energy companies surged 11 percent in October to snap their longest streak of monthly losses ever. Consol Energy Inc. jumped 17 percent while Chevron Corp. gained 4.5 percent to a July high. 

     Deals boosted health-care shares. Dyax Corp. soared 28 percent after Shire Plc agreed to buy the drugmaker for at least $5.9 billion. Pfizer Inc. climbed 3.8 percent as people with knowledge of the matter said the company is making progress in talks to buy Allergan Plc.

     A reading today showed U.S. manufacturing remained stuck in neutral in October as factories struggled with dwindling overseas demand and well-stocked customers at home. Official data earlier showed Chinese factory output shrank for a third month, contrasting with a report signaling a pickup in euro-area manufacturing.

     The October payrolls report due on Friday will begin to loom larger on investor sentiment as the week progresses. Economists surveyed by Bloomberg project the economy added 182,000 jobs last month, up from Septembers 142,000, with the unemployment rate slipping to 5 percent from 5.1 percent a month earlier.

     Equities rallied the most since 2011 in October and are riding their longest streak of weekly gains since December, bolstered in part by central banks as the Fed kept rates pinned near zero, while signs of weak growth prompted the European Central Bank last month to hint at potential extra measures. In Asia, China unexpectedly cut its lending rate and Bank of Japan maintained record stimulus.

     The S&P 500 is up 13 percent from an August low as equities recover from a third-quarter swoon triggered by concern that weakening growth in China would spread. An earnings season that hasn’t been as bad as analysts initially predicted also helped the benchmark erase a loss for the year.

     More than 100 companies in the S&P 500 are scheduled to announce earnings this week. Of those that have released results this season, about 75 percent exceeded profit projections, while 55 percent missed sales forecasts. Analysts estimate earnings dropped 3.9 percent in the third quarter, up from predictions for a 6.1 percent decline a week earlier.

 

Have a wonderful evening everyone.

 

Be magnificent!

Hold the reins of your mind, as you would hold the reins of a restive horse.

Svetasvatara Upanishad.

As ever,
 

Carolann

 

Either you run the day or the day runs you.

                              -Jim Rohn, 1930-2009

 

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