Month: January 2016

Dear Friends,

Tangents:

On Jan. 29, 1963, poet Robert Frost died in Boston.

Memorized when we were children:

Dust of Snow
     Robert Frost

The way a crow
Shook down on me
The dust of snow
From a hemlock tree

Has given my heart
A change of mood
And saved some part
Of a day I had rued.

The Secret Sits
     Robert Frost

We dance round in a ring and suppose,
But the Secret sits in the middle and knows.

PHOTOS OF THE DAY

A long exposure shows an igloo at ‘Igloo village’ (Iglu Dorf) in front of the famous Matterhorn mountain in Zermatt, Switzerland, Thursday night. The hotel-igloo village, made of snow and ice and located at 2815 meters above sea level, has a bar, a restaurant, and bedrooms and is celebrating its 20th anniversary. Jean-Christophe Bott/Keystone/AP

 

A man watches as Storm Gertrude whips up the Irish sea off Blackpool as it crosses over northwest Britain Friday. Red weather warnings are in place as Gertrude whips up winds of up to 90 m.p.h. Phil Noble/Reuters

Market Closes for January 29^th, 2016

Market Index	Close	Change
Dow Jones	16466.30	+396.66   +2.47%
S&P 500	1940.24	+46.88   +2.48%
NASDAQ	4613.953	+107.277   +2.38%
TSX	12822.13	+230.20
		+1.83%

International Markets

Market Index	Close	Change
NIKKEI	17518.30	+476.85
		+2.80%
HANG SENG	19683.11	+487.28
		+2.54%
SENSEX	24870.69	+401.12
		+1.64%
FTSE 100	6083.79	+152.01
		+2.56%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.225	1.240
CND. 30 Year Bond	2.035	2.050
U.S.    10 Year Bond	1.9226	1.9784
U.S. 30 Year Bond	2.7468	2.7844

Currencies

BOC Close	Today	Previous
Canadian $	0.71580	0.71218
US $	1.39704	1.40415
Euro Rate 1 Euro=		Inverse
Canadian $	1.51314	0.66088
US $	1.08310	0.92327

Commodities

Gold	Close	Previous
London Gold Fix	1111.80	1114.00
Oil	Close	Previous
WTI Crude Future	33.62	33.22

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks climbed a fourth day, trimming a monthly drop that sent shares into a bear market earlier this year, as crude prices rose and data showed the resource-rich nation’s economy expanded for the first time in three months.

     The Standard & Poor’s/TSX Composite Index rose 1.8 percent to 12,822.13 at 4 p.m. in Toronto. The index has rallied 8.3 percent since hitting a 2 1/2-year low on Jan. 20. While the benchmark equity gauge posted its first negative January since 2010, the late rally among energy producers has boosted the S&P/TSX’s performance to the best among developed markets this year.

     “It’s a dash for trash,” said John Stephenson, chief executive officer of Stephenson & Co. Capital Management in Toronto. His firm manages about C$50 million. “We’ve had a few days in a row of rising oil prices and it’s disproportionately benefiting Canada. Energy rallies a bit and people buy the energy names, especially the most beat up.”

     Health-care and raw material companies posted the biggest gains Friday as all 10 groups in the S&P/TSX advanced. Valeant Pharmaceuticals International Inc. jumped 5.3 percent after a two-day rout of 13 percent. Yamana Gold Inc. climbed 7.1 percent as the price of gold advanced.

     “There’s some good opportunities in the markets today if you’re a long-term investor,” said Sadiq Adatia, chief investment officer at Sun Life Global Investments in Toronto.

His firm manages C$12.3 billion. “In the energy sector, we were buyers last week. There are great opportunities looking out two to three years from now.”

     Energy shares ended higher in a see-saw day of trading after Alberta left royalty rates unchanged for bitumen, recognizing the “existential threat” the beleaguered industry faces from the U.S. shale boom. The review had initially stirred concerns that costs would rise for producers.

     West Texas Intermediate capped a second weekly gain, rising 40 cents to settle at $33.62 a barrel in New York. Futures advanced 4.4 percent this week and has pared declines this year to about 9 percent from a 12-year low of $26.55 on Jan. 20. Oil prices spiked after Russia’s Energy Minister Alexander Novak on Thursday said the Organization of Petroleum Exporting Countries and other producers may meet to discuss output.

     The broader S&P/TSX remains in the red for January, weighed down by losses among health-care and consumer discretionary stocks. Bombardier Inc., Concordia Healthcare Corp. and auto- parts manufacturer Linamar Corp. have been among the worst performers so far in 2016.

     The S&P/TSX joined a global rally Friday after the Bank of Japan surprised investors by adopting a negative interest-rate strategy. The MSCI All-Country World Index advanced 2.1 percent for a second day of gains, to a three-week high.

     “Green arrows abound on this last trading day of the month in what has otherwise been a horrible start to the year,” David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates Inc. in Toronto, wrote in a note.

     A rebound in manufacturing and wholesaling helped Canada’s gross domestic product expand by 0.3 percent in November, matching economists’ forecasts and indicating the nation is shaking off the damage from a drop in commodity prices.

     The S&P/TSX has performed better relative to other benchmarks after having “taken it on the chin” in 2015, when it was one of the worst performers in the developed world, Stephenson said.

     “There is a huge amount of pent-up enthusiasm for energy and investors are excited to see a rally,” he said.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks ended the worst January since 2009 with the best one-day gains in more than four months, after earnings from Microsoft Corp. exceeded expectations and the Bank of Japan stepped up monetary stimulus.

     The equity rally accelerated in the final hour of trading, with the strong finish a fitting end to a weak month that featured sharp reversals on an almost daily basis. Microsoft led the surge Friday with its biggest gain in three months. Nine of the S&P 500’s 10 main groups rose at least 1.7 percent. Amazon.com Inc. was a blemish, tumbling 7.6 percent as earnings for the holiday quarter missed estimates.

     The Standard & Poor’s 500 Index rose 2.5 percent to 1,940.24 at 4 p.m. in New York, the strongest advance since Sept. 8. Still, the gauge slumped 5.1 percent for the month, its worst start to a year since the height of the financial crisis. The Dow Jones Industrial Average advanced 396.66 points, or 2.5 percent, to 16,466.30, its best day in five months. The Nasdaq Composite Index added 2.4 percent, still finishing with its worst month since May 2010. The Russell 2000 Index jumped 3.2 percent, capping its worst month since 2011 with its biggest rally in four years.

     “Part of the strength in the markets today is central banks in the developed world being accommodative, and the other is a surprisingly strong Chicago manufacturing number that was really a blowout,” said Phil Orlando, who helps oversee $360 billion as chief equity-market strategist at Federated Investors Inc. in New York. “Earnings have been better than expected so far.”

     Stocks swung between gains and losses this week as investors assessed corporate earnings and the degree to which central banks will intervene to help stem increasing volatility and a dimming outlook for global growth. The S&P 500’s rally Friday lifted it to a second consecutive week of gains for the first time since Dec. 4.

     Prior to today’s unexpected action from the Bank of Japan to adopt a negative interest-rate strategy, the European Central Bank signaled last week it could boost stimulus as soon as March. The Federal Reserve said Wednesday it was watching to see how the global economy and markets impact the U.S. outlook.                         

     Data today showed the economy expanded at a slower pace in the fourth quarter, in line with forecasts, as households tempered spending while businesses cut back on capital investment and made further adjustments to inventories. A separate report showed consumer confidence cooled in January, shaken by the stock-market downturn, while a gauge on Chicago- area manufacturing jumped more than forecast to the highest in a year.

     “With today’s GDP there’s modest economic growth and Japan overnight pursuing lower interest rates means the Fed is not likely to raise four times this year,” said Michael Arone, the Boston-based chief investment strategist at State Street Global Advisors’ U.S. Intermediary Business. “Events like what happened with Japan going to negative interest rates puts downward pressure on our own interest rates and impacts the Fed’s ability to raise rates.”

     Investors are also scouring earnings for indications on how well U.S. companies are weathering weakness emanating from China. Analysts estimate profits at index members fell 5.6 percent in the fourth quarter, better than predictions two weeks ago that called for a 7 percent slump. Of those that have already posted results, 80 percent beat earnings projections, while 48 percent have exceeded sales estimates.                      

     Among companies moving after their reports today, Honeywell International Inc. rose 5.3 percent to pace gains in the S&P 500’s industrial group after its aerospace sales increased and the company reiterated its 2016 outlook. Visa Inc. climbed the most in 15 months after its profit exceeded estimates as consumer card spending increased. Video-game publisher Electronic Arts Inc. sank 7.5 percent after forecasting fiscal fourth-quarter results that fell short of estimates.

     Anxiety fueled by China’s slowdown and a rout in oil prices have battered stocks since the start of the year. The rout has pushed valuations down to 2014 levels and erased more than $2 trillion from the value of American equity markets. The S&P 500 is down 8.9 percent from its record set in May, after climbing 4.4 percent from a 21-month low reached on Jan. 20.

     The Chicago Board Options Exchange Volatility Index fell 9.9 percent Friday to 20.20, a three-week low. The measure of market turbulence known as the VIX increased 11 percent in January, after rising as much as 52 percent for the month. About 10.1 billion shares traded hands on U.S. exchanges, 31 percent above the three-month average.                        

     Technology companies rallied Friday to the biggest one-day climb in five months, bolstered by Microsoft’s gains. The group rose 3.6 percent to lead the S&P 500’s 10 main industries. Raw- material, financial and industrial shares each added at least 2.7 percent. Phone companies had the best performance this month, up 5.5 percent, while raw-materials were the worst, losing almost 11 percent.

     Joining Microsoft to power the tech group, Apple Inc. increased 3.5 percent to trim its drop this week, while Facebook Inc. and Google parent Alphabet Inc. advanced more than 1.7 percent. Hard-drive maker Seagate Technology Plc capped its biggest rally in more than three years after reporting sales that beat some analysts’ predictions amid a tough market for computer components.

     Semiconductor and equipment companies posted their steepest climb since September, rising 4 percent. Micron Technology Inc. and Qorvo Inc. led with gains of more than 7.9 percent. Intel Corp. rose 3.5 percent, the most since August.                     

     In addition to the boost from Honeywell, 3M Co. rose for a fourth day to help lift industrials to the best gain in more than three months. 3M increased 8.2 percent this week, its best since 2009, after the company reported better-than-estimated results on Tuesday. General Electric Co. added 3.2 percent, the most since October.

     Energy companies in the benchmark climbed to a three-week high. Consol Energy Inc., the second-biggest loser in the S&P 500 last year, surged 18 percent, even after its quarterly loss was wider than estimated. Kinder Morgan Inc. added 7.6 percent. Phillips 66 rose 1.8 percent, erasing a 3.7 percent drop. The largest U.S. independent refiner by market value reported a decline in profit as refining margins narrowed.

     Consumer discretionary companies advanced 1.2 percent, overcoming the drag from Amazon’s biggest drop since October 2014. Home Depot Inc. and Walt Disney Co. added at least 2.4 percent to help boost the group.

 

Have a wonderful weekend everyone.

 

Be magnificent!

No matter how insignificant the thing you have to do,

do it as well as you can,

give it as much of your care and attention as you would give to the thing

you regard as most important.

Mahatma Gandhi

As ever,
 

Carolann

 

Drawing on my fine command of language, I said nothing.

                                      -Robert Benchley, 1889-1945

 

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 history:

On Jan. 28, 1986, space shuttle Challenger exploded 73 seconds after liftoff from Cape Canaveral, killing all seven crew members.

 

1980 – Canadian Caper – Ambassador Ken Taylor engineers escape of 6 US diplomats from Iran.

PHOTOS OF THE DAY

A tourist takes a photograph of a new clockwork lion statue in Trafalgar Square, London, Thursday. The statue raises awareness and funds for the Big Cats Initiative, which supports efforts to save big cats. Grant Pollard/Invision/AP

Monkeys on leashes perform Thursday ahead of the Chinese New Year of the Monkey, which falls on Feb. 8, in Hangzhou, Zhejiang province, China. Reuters

Market Closes for January 28^th, 2016

Market Index	Close	Change
Dow Jones	16069.64	+125.18     +0.79%
S&P 500	1893.36	+10.41     +0.55%
NASDAQ	4506.676	+38.508     +0.86%
TSX	12591.93	+214.16
		+1.73%

International Markets

Market Index	Close	Change
NIKKEI	17041.45	-122.47
		-0.71%
HANG SENG	19195.83	+143.38
		+0.75%
SENSEX	24469.57	-22.82
		-0.09%
FTSE 100	5931.78	-58.59
		-0.98%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.240	1.247
CND. 30 Year Bond	2.050	2.056
U.S.    10 Year Bond	1.9784	1.9993
U.S. 30 Year Bond	2.7844	2.8010

Currencies

BOC Close	Today	Previous
Canadian $	0.71218	0.70966
US $	1.40415	1.40912
Euro Rate 1 Euro=		Inverse
Canadian $	1.53619	0.65096
US $	1.09400	0.91408

Commodities

Gold	Close	Previous
London Gold Fix	1114.00	1116.25
Oil	Close	Previous
WTI Crude Future	33.22	32.30

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a third day, the longest winning streak of 2016, as crude prices surged to a three-week high on a report OPEC and other producers will meet to discuss a potential output cut.

     Encana Corp. soared the most in more than seven years. Canadian Natural Resources Ltd. and Crescent Point Energy Corp. jumped as all but one of 55 members in a gauge of energy producers advanced.

     Oil futures surged as much as 7.8 percent in New York after Russia’s Energy Minister Alexander Novak said meeting participants in February may discuss a Saudi Arabian proposal for all oil-producing countries to trim production by 5 percent, Interfax reported. Crude settled at $33.22 a barrel, up 2.9 percent, paring earlier gains after OPEC delegates said no talks were planned.

     The Standard & Poor’s/TSX Composite Index rose 1.7 percent to 12,591.93, a three-week high. The index has gained 3.7 percent in three days, paring a monthly decline to 3.2 percent.

     The Bloomberg Commodity Index ended little-changed Thursday after rebounding 2.2 percent in the previous two days as crude prices jumped and gold rallied to a three-month high. Canada’s resource-rich benchmark equity gauge had moved in line with the Bloomberg index of commodities prices every day since Jan. 15 until today, according to data compiled by Bloomberg.

     Potash Corp. of Saskatchewan Inc. rose 1.3 percent, reversing earlier losses that sent shares to their lowest level in more than eight years. The world’s largest fertilizer producer by market value cut its quarterly dividend for the first time since a 1989 initial public offering after a forecast of lower-than-expected earnings Thursday amid lower prices for crop nutrients.

     Valeant Pharmaceuticals International Inc. tumbled 9.2 percent to a November low. The drugmaker on Jan. 25 released a memo written by Chief Executive Officer Michael Pearson that offered little on his current condition or the timing of his return to work after taking a medical leave of absence with severe pneumonia. Health-care shares fell the most in the S&P/TSX, losing 8.5 percent.

     Bombardier Inc. sank 11 percent, extending a 25-year low, as the struggling aerospace manufacturer traded below C$1. Investors are losing patience with the company amid repeated delays and cost overruns in its C Series jet. The stock was one of the worst-performing in the S&P/TSX last year and has slumped 34 percent in January.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks advanced, with energy shares leading a rebound sparked by rising crude-oil prices, as investors weighed corporate earnings and prospects for global growth.

     Equities whipsawed amid a slew of quarterly results on the reporting season’s busiest day, a session after the Federal Reserve said it’s monitoring global developments to assess their impact on U.S. growth. Facebook Inc.’s better-than-expected report sparked gains in technology, while Abbott Laboratories sank 9.3 percent, weighing on health-care shares after its forecast trailed estimates. Amazon.com Inc. fell in late trading while Microsoft Corp. rallied following their earnings reports after markets closed.

     The Standard & Poor’s 500 Index climbed 0.6 percent to 1,893.36 at 4 p.m. in New York, after swinging between a 1.1 percent gain and a 0.5 percent loss. The Dow Jones Industrial Average rose 125.18 points, or 0.8 percent, to 16,069.64. The Nasdaq Composite Index climbed 0.9 percent, rising from a three month low. About 8.8 billion shares traded hands on U.S. exchanges, 16 percent above the three-month average.

     “It’s no longer about whether we’re rebounding from the financial crisis back to normal levels,” said Jason Pride, the Philadelphia-based director of investment strategy at Glenmede, which oversees $30 billion. “It’s about whether growth is going to be sustained, how good is that growth and where is the market incorrectly placing value. The takeaway for the market from the Fed announcement yesterday is that they’re seeing growth as being a little slower and they definitely see the risks from possible contagion from China and what’s going on in the oil markets.”

     While oil’s direction has been a strong influence on equities, earnings results are gaining clout as the pace of the reporting season intensifies. Stocks dropped yesterday amid an Apple-led slump and Boeing Co.’s biggest decline in 14 years after outlooks from both companies disappointed. Caterpillar Inc. contributed to today’s revival, leading the Dow with a 4.7 percent gain after reporting better-than-estimated earnings as cost cuts blunted the effects of a commodities meltdown.

     Amazon slid 10 percent as of 4:44 p.m. after its holiday quarter profit and sales missed estimates, taking the shine off of a year marked by record earnings and an expansion of the company’s businesses. The Web retailer’s cloud-computing division had fourth-quarter sales of $2.4 billion, up 69 percent from a year earlier. Meanwhile, Microsoft gained 3.6 percent in late trading after posting better-than-projected sales and profit, fueled by cloud services and Office productivity programs.

     Investors are looking to earnings as a possible bright spot in the worst month for stocks in five years, down 7.4 percent. Analysts estimate profit at S&P 500 firms fell 6.3 percent in the fourth quarter, better than predictions a week earlier that called for a 7 percent slump. Of those that have already posted results, 80 percent beat earnings projections and 50 percent exceeded sales forecasts.

     Fed policy makers left interest rates unchanged yesterday and said they still expect to raise borrowing costs at a “gradual” pace, while watching to see the impact of the global economy and markets. The comments sent the probability of a March hike lower, to 14 percent from about one-in-four odds before the meeting.                          

     Since the Fed last month raised rates for the first time in almost a decade, turbulence in financial markets and a dimming of the outlook for worldwide growth have spurred investors to expect a slower rise in borrowing costs.

     Data today showed orders for business equipment fell in December by the most in 10 months. Orders for all durable goods slumped 5.1 percent, the most since August 2014. A separate report showed contracts to purchase previously owned homes rose less than forecast in December, indicating more tempered progress in residential real estate early this year.

     The Chicago Board Options Exchange Volatility Index fell 3 percent Thursday to 22.42. The measure of market turbulence known as the VIX is up 23 percent in January, its biggest monthly surge since a record jump in August.

     Among the S&P 500’s 10 main groups, energy companies rallied 3.2 percent and technology shares added 1.5 percent to pace the advance. Health-care companies slumped 2.3 percent, the only industry retreating today.

     Energy stocks rose to a three-week high, buoyed by stronger oil prices. Hess Corp. added 9.5 percent, the most since 2008, after reporting better-than-expected quarterly results yesterday. Kinder Morgan Inc. and Devon Energy Corp. each rose at least 8.4 percent.

     Crude rose as much as 7.8 percent after Russia’s energy minister said that OPEC and other producers may meet to discuss output, before paring gains as OPEC delegates said no talks were planned. The commodity closed 2.9 percent higher in New York.

     Facebook’s 16 percent rally was its best in more than two years and it closed at an all-time high of $109.11. Among other tech companies, PayPal Holdings Inc. rose 8.4 percent after its quarterly profit and revenue beat estimates, and Google parent Alphabet Inc. increased 4.3 percent, the most since October.

     Juniper Networks Inc. offset some gains within the tech group, tumbling 15 percent, the most in more than four years. The network equipment maker forecast earnings for the current quarter that missed estimates and said its chief financial officer is stepping down. EBay Inc. fell 12 percent, its steepest loss in seven years after sales stalled last quarter and the company’s first-quarter profit and revenue forecasts were below analysts’ estimates.                         

     Health-care companies sank to a four-month low, dragged down by Abbott’s worst drop since 2002. The largest maker of heart stents provided a profit forecast range that trailed analysts’ estimates, citing the impact of the stronger dollar and its struggling Venezuelan business.

     Biotech stocks saw even greater losses, as the iShares Nasdaq Biotechnology ETF tumbled 3.6 percent to the lowest since October 2014. The fund, which is down 22 percent in January, is on track for its worst month of performance since it was created in 2001.

     Incyte Corp. fell 9.6 percent after halting a mid-stage trial looking at an experimental drug for colorectal cancer, while Celgene Corp. lost 5 percent to its lowest since October 2014 after providing an outlook that disappointed investors.

     “Biotechs are running counter to the good day that oil is having and energy stocks are having,” said Tim Ghriskey, who helps oversee $1.5 billion as managing director and chief investment officer at Solaris Asset Management in New York. “The health-care sector is just taking it on the chin today and I think that’s a valuation issue.”

     Better-than-expected earnings results helped send Under Armour Inc. almost 23 percent higher, the strongest gain in two years. Meanwhile, United Rentals Inc. slumped 18 percent, the most since 2008, after forecasting sinking rental rates next year and UBS AG downgraded the stock to neutral from buy. Alliance Data Systems Corp. tumbled 19 percent, the most in seven years, after trimming first-quarter guidance.

 

Have a wonderful evening everyone.

 

Be magnificent.

Civilization, in the real sense of the term, consists not in the multiplication

but in the deliberate and voluntary restriction of the wants.

This alone promotes real happiness and contentment, and increases the capacity for service.

A certain degree of physical harmony and comfort is necessary, but above that level,

it becomes a hindrance instead of a help.

Therefore the ideal of creating an unlimited number of wants and satisfying them

seems to be a delusion and a snare.   The satisfaction of one’s physical needs, even the intellectual needs

of one’s narrow self,  must meet at a point a dead stop before it degenerates into physical

and intellectual voluptuousness.  A man must arrange his physical and cultural circumstances

so that they may not hinder him  in his service of humanity,

on which all  his energies should be concentrated.

Mahatma Gandhi

As ever,
 

Carolann

 

Our life always expresses the result of our dominant thoughts.

                                        -Soren Kierkegaard, 1813-1855

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

The List: Five unusual claims to fame

                                       -Elsa Court, Financial Times 

The British wet-weather record was set by Eallabus in 1923. Here are five other places with unusual claims to fame:
 
After 83 days of consecutive rainfall, residents of Eglwyswrw in south-west Wales had gone from wishing it would end to wishing for a few more rainy days — the village was just six days short of the British wet-weather record set by Eallabus, north-west Scotland, in 1923. But earlier this week a day of sunshine unexpectedly broke out and the longstanding record remained unbroken. Here are five other places with unusual claims to fame.

1.   Tsovkra-1, Dagestan, Russia, is home to a population made up entirely of tightrope-walkers (pictured above). This remote village in the Caucasus became famous after the second world war for providing tightrope acrobats for circuses across the Soviet Union (it was twice awarded the Artist of the People award, the USSR’s highest artistic distinction). The population of Tsovkra-1 may have dropped from 3,000 to 400 over the past 30 years but those who remain hope to resurrect the village’s unusual history — a tightrope-walking school has just reopened.

2.   Norwich, England, has two cathedrals and 32 medieval churches — more than any other city in northern Europe — yet according to a 2011 census, was the “least religious” city in England and Wales. Some 42.5 per cent of respondents — the highest in the census — reported having “no religion”, compared with an overall average of 25.1 per cent.

3.   Rjukan, Norway, enjoyed winter daylight for the first time in history in 2013. Set deep in a narrow valley, the town is normally bathed in darkness from September to March, but its council invested NKr5m (£544,000) to build three giant mirrors to bounce sun rays on to its main square, which now advertises itself as “a sunny meeting place” at the heart of a once shadowy town.

4.   Woodchurch, Kent, last year sought international recognition by astronomers as one of the darkest places in England. After identifying an area of about 20 miles on the edge of Romney Marsh as having among the darkest night skies in the country, Ashford Borough Council applied for International Dark Sky Community status to help protect the area from light pollution and promote tourism by stargazers. A decision is awaited.

5.   Longyearbyen, Svalbard, Norway, prides itself on being the world’s most northerly town. It is also known for being a place where dying — or rather, dying and being buried — is proscribed. The reason? Svalbard’s extreme cold makes it impossible for bodies to decompose, meaning that corpses can be a health hazard. People who die or are taken ill in the remote Arctic town are immediately airlifted or shipped to mainland Norway.

On this day in…

1967    More than 60 nations signed a treaty banning the orbiting of nuclear weapons.

1973    The Vietnam peace accords were signed in Paris.

1998    First lady Hillary Rodham Clinton, appearing on NBC’s “Today” show, said that allegations against her husband were the work of a “vast right-wing conspiracy.”

2010    Apple CEO Steve Jobs unveiled the iPad tablet computer during a presentation in San Francisco.

2010    J.D. Salinger, the reclusive author of “The Catcher in the Rye,” died in Cornish, N.H. at age 91.

PHOTOS OF THE DAY

A group of visitors walk inside the Holocaust Memorial in Berlin Wednesday on International Holocaust Remembrance Day, marking the liberation of Auschwitz Nazi death camp on Jan. 27, 1945. Markus Schreiber/AP

 

A woman takes pictures of a big heart made of red roses at the international trade fair for plants in Essen, Germany, Wednesday. More than 1,600 exhibitors from 50 countries presented the latest trends at the world’s leading trade fair for horticulture. Martin Meissner/AP

Market Closes for January 27^th, 2016

Market Index	Close	Change
Dow Jones	15944.46	-222.77   -1.38%
S&P 500	1882.95	-20.68     -1.09%
NASDAQ	4468.168	-99.505   -2.18%
TSX	12377.77	+46.45
		+0.38%

International Markets

Market Index	Close	Change
NIKKEI	17163.92	+455.02
		+2.72%
HANG SENG	19052.45	+191.65
		+1.02%
SENSEX	24492.39	+6.44
		+0.03%
FTSE 100	5990.37	+78.91
		+1.33%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.247	1.266
CND. 30 Year Bond	2.056	2.071
U.S.    10 Year Bond	1.9993	1.9942
U.S. 30 Year Bond	2.8010	2.7852

Currencies

BOC Close	Today	Previous
Canadian $	0.70966	0.70823
US $	1.40912	1.41196
Euro Rate 1 Euro=		Inverse
Canadian $	1.53592	0.65108
US $	1.08998	0.91744

Commodities

Gold	Close	Previous
London Gold Fix	1116.25	1113.60
Oil	Close	Previous
WTI Crude Future	32.30	31.45

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks recovered from early losses on Wednesday as the Standard & Poor’s/TSX Index continued a streak of moving in tandem with commodity and crude prices.

     The S&P/TSX rallied for a second straight day, adding 0.4 percent to 12,377.77 at 4 p.m. in Toronto and erasing a decline of as much as 0.7 percent. Half of the index’s 10 main industries advanced. The S&P/TSX, which entered a bear market earlier this year, is poised for its worst monthly performance since May 2012.

     Canada’s benchmark index has moved closely with raw materials prices this year, as investors in the country’s resource-heavy equities market weigh tumbling oil prices and signs of slowing growth in China. The S&P/TSX has moved in the same direction as a Bloomberg index of commodities every day since Jan. 15, according to data compiled by Bloomberg.

     Energy stocks in the S&P/TSX reversed losses to jump 0.8 percent, with 40 companies in the 55-member index advancing. Precision Drilling Corp. and Pengrowth Energy Corp. led gains, each adding more than 6.6 percent. Oil erased a decline as stockpiles at the biggest U.S. storage hub dropped even as nationwide crude supplies climbed to the highest level since 1930.

     Raw-materials advanced more than any group in the S&P/TSX, climbing 1.2 percent as the Bloomberg commodity index jumped 0.8 percent. Gold bullion, this month’s best performing metal, was at a two-month high before the U.S. Federal Reserve bank ends a two-day meeting. Concerns over the strength of the global economy has boosted demand for the haven and prompted investors to push back expectations of when the Fed will next raise borrowing costs.

     Technology shares also advanced, adding 0.4 percent on a 4 percent surge in CGI Group Inc. The company reported quarterly earnings and revenue that topped analyst estimates. Profits in the first quarter were C$0.84 a share, compared with expectations of C$0.83, the company said.

     Health-care shares fell the most in the S&P/TSX with a 3.8 percent loss as a 4.6 percent decline in Concordia Healthcare Corp. weighed on the group of five stocks.

     Telephone companies also retreated, after Rogers Communications Inc., Canada’s largest wireless operator, reported fourth-quarter earnings that missed analysts’ estimates as increased competition for subscribers led to higher advertising and promotions costs. Rogers shares slumped 5.4 percent for the biggest drop in the S&P/TSX.

     Bombardier Inc.’s shares briefly fell below C$1, before closing at that level. It’s the latest blow for the iconic Canadian manufacturer as it buckles under $9 billion in debt.

The rout raises the prospect that the aircraft maker will be thrown out of the main Canadian stock gauge.

US

By Anna-Louise Jackson and Oliver Renick

     (Bloomberg) — U.S. stocks sank following no discernible shift in stance from the Federal Reserve amid recent market turmoil, as Apple Inc. and Boeing Co. led a slide after their outlooks disappointed investors.

     Even a gain in crude oil couldn’t stem the afternoon selling Wednesday, as Boeing had its steepest drop in 14 years, and Apple’s loss was the biggest in two years. An index of technology hardware companies slumped to its lowest in 21 months. Biogen Inc. and Capital One Financial Corp. gained at least 4.8 percent after their profits beat estimates. Facebook Inc. rallied in late trading following its earnings report after the markets closed.  

     The Standard & Poor’s 500 Index fell 1.1 percent to 1,882.95 at 4 p.m. in New York, after swinging between gains of as much as 0.7 percent and a 1.6 percent loss. The Dow Jones Industrial Average fell 227.77 points, or 1.4 percent, to 15,944.46 with Apple and Boeing combining for a 123-point drag. The Nasdaq Composite Index lost 2.2 percent. About 8.8 billion shares traded hands on U.S. exchanges, 16 percent above the three-month average.

     “The market was going into the statement pricing in some expectations that the Fed was either going to acknowledge slowing economic data, market volatility and China or sound a little dovish and that didn’t play out,” Brian Rauscher, chief portfolio strategist at Robert W Baird & Co in New York, said by phone. “If every other central bank says we’re loosening and you don’t think the economy here is strong enough, then investors will ultimately price in a more dovish Fed and you see this back-and-forth in the markets.”

     Fed policy makers left interest rates unchanged and said they still expect to raise borrowing costs at a “gradual” pace while watching to see how the global economy and markets impact the U.S. outlook. Since the Fed raised interest rates last month for the first time in almost a decade, turbulence in financial markets and a dimming of the outlook for global growth have spurred investors to expect a slower rise in borrowing costs.

     The median projection of policy makers’ forecasts in December called for four quarter-point rate increases in 2016, while futures markets indicate traders see fewer. The probability of a raise in March has fallen to 19 percent, from even odds at the start of the year.

     Anxiety fueled by China’s slowdown and a rout in oil prices has hammered stocks since the start of the year, wiping as much as $2.4 trillion from the value of U.S. equities alone. The S&P 500 remains on track for its worst January since 2009, with results from Apple and Boeing offering little relief from worries that weakness in China is festering.

     Equities already had a volatile day leading into the Fed’s statement, beginning with a selloff led by Apple and Boeing. Oil prices then recovered from an early drop to spark a late-morning rally in energy shares. Banks boosted the move by building on yesterday’s climb, only to shave their advance after word from the Fed.

     “Buyers moved to the sidelines as an initial reaction to the statement,” said Walter “Bucky” Hellwig, who helps manage $17 billion as a senior vice president at BB&T Wealth Management in Birmingham, Alabama. “There was not a more dovish statement from the FOMC and that disappoints investors.”

     Fed officials have emphasized that the course for rates depends on progress in the economy. A report today showed purchases of new homes in the U.S. surged in December to the highest level in 10 months, closing out the best year for housing since 2007. Sales jumped a stronger-than-forecast 10.8 percent last month. Data yesterday showed consumer confidence improved in January to a three-month high.

     The earnings season is also in full swing, with at least 32 S&P 500 companies reporting today. Of the firms that have posted quarterly results so far, 76 percent beat earnings estimates, while about half of them exceeded sales projections.

     Facebook climbed 8 percent as of 4:55 p.m. after delivering another quarter of record revenue that topped estimates as it sells more ads via videos, mobile devices and the Instagram photo-sharing service. PayPal Holdings Inc. beat sales estimates as it won new vendors, sending its shares up 5.3 percent in late trading. EBay Inc. slumped 9.5 percent after projected earnings that may miss analysts’ estimates as growth on its marketplace stalled.                      

     Even as the pace of the reporting season picks up, equity investors have held to their fixation this year on the direction of crude prices. The S&P 500 has moved in virtual lockstep with oil, with their relationship reaching the tightest since 2011. Today was no different as equities this morning briefly erased losses along with crude.

     The Chicago Board Options Exchange Volatility Index rose 2.7 percent to 23.11. The measure of market turbulence known as the VIX is down about 14 percent in the last seven sessions, trimming its biggest monthly surge since a record jump in August.

     Eight of the S&P 500’s 10 main industries declined Wednesday, with technology shares falling 2.5 percent under Apple’s weight, while consumer discretionary, health-care and industrial companies lost at least 1 percent. Phone and utility companies rose.

     Apple suppliers Qorvo Inc. and Skyworks Solutions Inc. fell more than 5.6 percent after the world’s most valuable company forecast a sales decline for the first time in more than a decade. Apple Chief Executive Tim Cook said yesterday the company is beginning to see “economic softness” in China.                     

     Boeing paced the drop in industrials after predicting weaker profit and fewer jetliner deliveries than analysts expected. Textron Inc. sank 13 percent, the most since April 2013, after its quarterly earnings missed estimates.

     Health-care stocks slumped the most in more than a week, as Illumina Inc. and Regeneron Pharmaceuticals Inc. both tumbled more than 6 percent to the lowest levels since at least November. The iShares Nasdaq Biotechnology ETF fell 3.1 percent, bringing its three-day losses to 5.1 percent, as it closed at the lowest since October 2014.

     Consumer discretionary stocks fell 1.5 percent, dragged down by Amazon.com Inc.’s 3 percent decline. Netflix Inc. tumbled for a sixth straight day and closed down 6.8 percent at a level last seen in June. Travel-related companies also sold off, as Priceline Group Inc. fell 6.1 percent to the lowest in 11 months, while Royal Caribbean Cruises Ltd. and Carnival Corp. both lost at least 3.5 percent.

     Banks continued a rebound, rising for the third time in four days amid speculation that rising rates will help boost profits as bond yields crept higher. Capital One rallied 4.8 percent, the most since October after fourth-quarter profit and revenue exceeded analysts’ estimates. Huntington Bancshares Inc. and Zions Bancorporation added more than 2.4 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

In the search for the Truth, dharma, the real effort does not preclude action

(does not consist in neglecting action), but by trying to accord oneself more and more exactly

with the exterior harmony.  The currency of this effort is in becoming:

whatever work you take on, dedicate it to Brahman.

Rabindranath Tagore

As ever,
 

Carolann

 

It’s not the load that breaks you down, it’s the way you carry it.

                                                             -Lou Holtz, 1937-

 

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:

Prime Numbers:

1 Billion: Rides taken via Uber, the ridesharing network, as of December 24, 2015.  Uber was founded insane Francisco in 2009.

4: Nations and regions worldwide where Netflix is not available because of restrictions on US companies: China, Crimea, North Korea and Syria.  Netflix recently rolled out service of its media-sharing platform in more than 130 countries.

1404 Carats: the weight of the world’s largest blue star sapphire, dug from a mine in Sri Lanka.  The gem has a minimum value of $100 million.

4: Newly discovered superheavy elements approved for inclusion in the periodic table of elements.

14 Million: Price (in Japanese yen, about $117,000) paid by a Japanese sushi restaurant chain January 4^th for a 441 pound bluefin tuna, a record.  That’s abot $265 per pound.

PHOTOS OF THE DAY

Traditional Aboriginal dancers perform a ceremony on Australia Day in Sydney Tuesday. Australia Day is the anniversary of the arrival and landing of the First Fleet of convict ships from Great Britain, and the raising of the Union Jack at Sydney Cove by Captain Arthur Phillip, on Jan 26, 1788. Dita Alangkara/AP

 

Members of the Jarl Squad, dressed in Viking costumes, march through the streets of Lerwick on the Shetland Isles, Scotland, during the Up Helly Aa festival Tuesday. Originating in the 1880s, the festival celebrates Shetland’s Norse heritage. Andrew Milligan/PA/AP

Market Closes for January 26^th, 2016

Market Index	Close	Change
Dow Jones	16167.23	+282.01     +1.78%
S&P 500	1903.63	+26.55     +1.41%
NASDAQ	4567.672	+49.181   +1.09%
TSX	12331.32	+188.16
		+1.55%

International Markets

Market Index	Close	Change
NIKKEI	16708.90	-402.01
		-2.35%
HANG SENG	18860.80	-479.34
		-2.48%
SENSEX	24485.95	+50.29
		+0.21%
FTSE 100	5911.46	+34.46
		+0.59%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.266	1.243
CND. 30 Year Bond	2.071	2.058
U.S.    10 Year Bond	1.9942	2.0047
U.S. 30 Year Bond	2.7852	2.7859

Currencies

BOC Close	Today	Previous
Canadian $	0.70823	0.70033
US $	1.41196	1.42789
Euro Rate 1 Euro=		Inverse
Canadian $	1.53401	0.65188
US $	1.08644	0.92044

Commodities

Gold	Close	Previous
London Gold Fix	1113.60	1106.60
Oil	Close	Previous
WTI Crude Future	31.45	28.39

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks continued to mirror prices of commodities, rallying to trim the equity benchmark’s worst monthly decline since 2012, as resources from crude to copper rebounded.

     The Standard & Poor’s/TSX Index added 1.6 percent to 12,331.32 at 4 p.m. in Toronto, following a 2 percent decline on Monday. Nine of the index’s 10 main industries climbed. The S&P/TSX, which entered a bear market earlier this year, has fallen 5.2 percent this month.

     Health-care shares advanced the most in the index, climbing 4.5 percent on gains of at least 3.3 percent in Concordia Healthcare Corp. and Valeant Pharmaceuticals International Inc. The group of five stocks is down 2.9 percent on the year.

     Concern that China’s government won’t be able to stop the world’s second-largest economy from slowing has sent commodities prices tumbling. That’s pushed Canada’s resource-heavy equities market into a bear market as the nation’s economy suffered from waning demand for minerals and oil. Commodities advanced Tuesday on speculation the U.S. economy will continue to grow and that central banks are prepared to step up stimulus if warranted.

     Energy stocks in the S&P/TSX increased, as all but two companies in the 55-member index rose. Pengrowth Energy Corp. and Birchcliff Energy Ltd. led gains, jumping more than 15 percent. West Texas Intermediate crude climbed after Iraq’s oil minister said at a conference in Kuwait that Saudi Arabia and Russia are now more flexible about cooperating to cut output.

     Raw-materials producers jumped 2.1 percent as a Bloomberg index of commodities added 1.4 percent. Forty of the 46 commodity companies in the S&P/TSX advanced today as gold and copper rose.

     Canadian National Railway jumped 1.6 percent after reporting fourth-quarter earnings per share that beat analyst estimates, even as revenue missed. Earnings were C$1.18 in the fourth quarter, compared with the average estimate of $1.11.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks rallied, with the Dow Jones Industrial Average posting its strongest gain in more than seven weeks, amid better-than-forecast earnings from companies ranging from 3M Co. to Coach Inc. while energy shares rebounded with oil after a selloff Monday.

     Proctor & Gamble Co., 3M and Johnson & Johnson rose at least 2.5 percent after their quarterly profits beat analysts’ estimates. Sprint Corp. surged 19 percent after posting a smaller-than-estimated loss and gaining subscribers for a fifth straight quarter. Coach climbed the most since 2010 after raising its full-year earnings outlook, and Chevron Corp. gained 4 percent as energy shares led the rally. Apple Inc. was little changed in late trading after its earnings report.

     The Standard & Poor’s 500 Index added 1.4 percent to 1,903.63 at 4 p.m. in New York, recovering from a 1.6 percent drop yesterday. The Dow gained 282.01 points, or 1.8 percent, to 16,167.23. The Nasdaq Composite Index increased 1.1 percent. About 7.9 billion shares traded hands on U.S exchanges, 4.3 percent above the three-month average.

     “Crude oil has done well today, that’s probably what’s responsible for this rally,” Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee, said by phone. “It comes down to what energy is doing and it has for a while. Earnings have started to ramp up, so that could be helping today as well. We need to see crude oil spend a month sideways and it’s just not happening yet.”

     Tuesday’s rally provided a reprieve for the S&P 500, which remains on track for its worst January since 2009 as a plunge in oil prices exacerbated worries that China’s slowdown will weigh on global growth. Better-than-forecast earnings reports and economic data today helped soothe some of those concerns, while Federal Reserve officials gathered in Washington for a two-day policy meeting.

     Policy makers are widely expected to leave rates steady, though investors will be scouring Wednesday’s statement for hints officials are backing away from the path of four rate increases in 2016. Signals last week that central banks in Europe and Japan stand ready to boost stimulus to tamp down market volatility fueled a flight to risk assets after equities had the worst two-week start to a year on record.

     Fed officials have emphasized that the course for rates depends on progress in the economy. A report today showed home prices in 20 U.S. cities rose at a faster pace in the year ended November, underscoring the shortage of supply amid steady demand. Separate data showed consumer confidence improved in January to a three-month high as Americans grew more upbeat about the prospects for the economy, labor market and their incomes.

     The S&P 500 has lost 8.2 percent since the Fed raised borrowing costs last month for the first time in nearly a decade. The probability of a rate increase this week has stayed low after the December liftoff, and chances the Fed will raise in March have fallen to less than one-in-four from even odds at the start of the year.

     Traders are also watching corporate earnings results for a read on the strength of the economy. Of those S&P 500 members that have already posted results, 80 percent beat earnings projections while 50 percent exceeded sales forecasts. Analysts estimate profit at firms in the index fell 6.3 percent in the fourth quarter, better than predictions a week ago calling for a 7 percent slump.

     Apple slipped 0.2 percent as of 4:47 p.m. after forecasting a sales decline for the first time in more than a decade. Sales and iPhone shipments fell short of projections in the quarter ended in December, reinforcing concerns that Apple is reaching the limits of iPhone growth. Profit was also below analysts’ forecasts.

     “I think the strong housing numbers are showing that the United States, while not an island, is fairly well insulated from any slowdown in China,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo Advantage Funds, by phone from Menomonee Falls, Wisconsin. “If we can see the good earnings continue and numbers that beat expectations, and more importantly, constructive guidance, that could help us maintain some independence from the Chinese market.”

     3M saw its best rally in four years, boosting the industrial group, after the maker of Post-it notes and Scotch tape cut costs to fight the effects of a strong dollar. J&J also jumped the most since 2011 after its earnings were helped by sales of blockbusters like arthritis treatment Remicade and psoriasis drug Stelara.

     The Chicago Board Options Exchange Volatility Index fell 6.8 percent today to 22.50, after an 8 percent jump on Monday. The measure of market turbulence known as the VIX remains on pace for its biggest monthly gain since August.

     All of the S&P 500’s 10 main industries were higher, reversing Monday’s across-the-board retreat. Energy companies, the worst performers yesterday, surged 3.8 percent. The group has swung at least 2.1 percent in either direction for eight consecutive sessions. Phone companies, industrial, raw-material and financial shares all gained more than 1.7 percent.

     Chesapeake Energy Corp. rose 8.1 percent, after leading energy producers lower yesterday with its biggest drop in more than seven years. Devon Energy Corp. and Range Resources Corp. increased more than 7.8 percent. West Texas Intermediate crude futures rose 3.7 percent, trimming an earlier 6.8 percent jump, after slumping nearly 6 percent yesterday. Iraq’s oil minister said at a conference in Kuwait that Saudi Arabia and Russia are now more flexible about cooperating to cut output.

     Banks in the benchmark snapped back from 26 month lows.  Zions Bancorporation rose 4.2 percent and briefly reversed Monday’s 5.2 percent drop, while Bank of America Corp. climbed 2.7 percent. Huntington Bancshares Inc. was the only loser, falling 8.5 percent after agreeing to acquire smaller rival FirstMerit Corp. for $3.4 billion in cash and stock and saying it will take more than five years to rebuild capital spent on the deal.

     An index of trucking companies surged the most since October 2011, with Heartland Express Inc. and Ryder System Inc. rising more than 7.4 percent. Heartland reported quarterly earnings in line with analysts estimates. Swift Transportation Co. rallied 21 percent, the biggest in two years, after its earnings beat forecasts. The Dow Jones Transportation Average capped its strongest gain in more than four months.

     With data showing Americans feeling better about the economy, a swath of consumer companies from apparel makers to homebuilders were among the session’s strongest performers. Lennar Corp. increased 4.8 percent its steepest gain in a year. Hanesbrands Inc. and Michael Kors Holdings Ltd. advanced more than 2.8 percent.

     Corning Inc. rose 5.7 percent, the best in more than two years. The specialty glassmaker’s fourth-quarter profit and sales beat estimates, while the company said it expects the first quarter will be 2016’s weakest with growth recovering as the year progresses.

     Polaris Industries Inc. fell 9.2 percent, the most in five weeks after the snowmobile and all-terrain vehicle maker’s 2016 outlook missed analysts’ forecasts. Arctic Cat Inc. sank 7.3 percent to a five-year low, and Harley-Davidson Inc. slipped 3.8 percent to the lowest since December 2011.

 

Have a wonderful evening everyone.

 

Be magnificent!

The best way to find yourself is to lose yourself in the service of others.

Mahatma Gandhi

As ever,

 

Carolann

 

Honesty is the first chapter in the book of wisdom.

                          -Thomas Jefferson, 1743-1826

 

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 this afternoon, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Tourists watch high waves from the Pacific Ocean pounding the coast in Vina del Mar, Chile, Monday. Tourists have been warned by the navy to stay away from beaches, especially in the evening and early morning during high tides. Rodrigo Garrido/Reuters

A snowman stands in front of the White House in Washington Monday. The area is digging out from the weekend blizzard. Kevin Lamarque/Reuters

Market Closes for January 25^th, 2016

Market Index	Close	Change
Dow Jones	15885.22	-208.29     -1.29%
S&P 500	1877.08	-29.82   -1.56%
NASDAQ	4518.492	-72.688   -1.58%
TSX	12143.16	-246.42
		-1.99%

International Markets

Market Index	Close	Change
NIKKEI	17110.91	+152.38
		+0.90%
HANG SENG	19340.14	+259.63
		+1.36%
SENSEX	24485.95	+50.29
		+0.21%
FTSE 100	5877.00	-23.01
		-0.39%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.243	1.319
CND. 30 Year Bond	2.058	2.101
U.S.    10 Year Bond	2.0047	2.0554
U.S. 30 Year Bond	2.7859	2.8261

Currencies

BOC Close	Today	Previous
Canadian $	0.70033	0.70811
US $	1.42789	1.41220
Euro Rate 1 Euro=		Inverse
Canadian $	1.54921	0.64549
US $	1.08496	0.92169

Commodities

Gold	Close	Previous
London Gold Fix	1106.60	1096.25
Oil	Close	Previous
WTI Crude Future	28.39	30.99

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks plunged, joining renewed selling in equities from Europe to America as crude oil resumed a selloff that sent energy shares tumbling.

     The Standard & Poor’s/TSX Index slid 2 percent to 12,143.16 at 4 p.m. in Toronto, the first decline in three sessions. Eight of the index’s 10 main industries fell, with energy and financial companies leading the index lower. The S&P/TSX, which entered a bear market earlier this year, added 2.6 percent last week, its first weekly advance of 2016.

     U.S. and European stocks also halted a two-day rally, as crude oil tumbled 5.8 percent in New York. The rout in oil rekindled concerns that global growth is slowing and sparked demand for haven assets such as government bonds. The yield on Canada’s benchmark 10-year bond slid seven basis points to 1.24 percent.

     Declines in energy prices, as well as a slumping economy, have driven consumer confidence in Canada to a record low. Data today showed the Bloomberg Nanos Canadian Confidence Index measuring optimism on personal finance, job security, housing and the economy fell to 52.3 from 53 a week earlier.

     All companies in the 55-member S&P/TSX energy index declined. Penn West Petroleum Ltd declined 7 percent, while Gran Tierra Energy Inc and Whitecap Resources Inc lost at least 5.9 percent.

     Financial stocks in the S&P/TSX index lost 1.7 percent, as the drop in yields threatened the earnings power at lenders and damped the prospects for investment returns at financial- services firms. The S&P/TSX Banks Index plunged 3 percent Toronto-Dominion Bank and Royal Bank of Canada sliding more than 2.9 percent.

     Raw-materials producers fell 0.6 percent as a Bloomberg index of commodities lost 1.1 percent.

US

By Jeremy Herron and Anna-Louise Jackson

     (Bloomberg) — U.S. stocks halted a two-day rebound, with losses piling up in the last hour of trading as crude oil resumed a selloff that has rocked financial markets this year. Commodity-linked currencies slid as investors sought refuge in haven assets from gold to Treasuries.

     Energy and mining shares pushed the Standard & Poor’s 500 Index’s retreat to 1.6 percent as U.S. crude tumbled back below $31 a barrel, winding back a sizable chunk of Friday’s gains. Sentiment was better in emerging markets, where stocks headed for their steepest two-day advance since September on bets central banks will bolster stimulus to soothe the market turbulence. While the ruble weakened against all but one of its 31 major peers and Canada’s dollar sank, gold jumped. 10-year Treasury yields dropped five basis points.

     Even after it staged a recovery late last week, crude is still nearing a 20 percent decline this year as brimming U.S. stockpiles and the prospect of additional Iranian exports fuel anxiety over a global glut. The slump in energy prices has also amplified concern over world growth and disinflation, as it also points to weaker industrial demand. With energy and commodity companies sliding, a measure of the correlation between global stocks and oil prices over the past 120 days has climbed to 0.5, the highest level since 2013.

     “Obviously investors are working through some potentially difficult issues in their minds about the state of the world economy,” said John Carey, a Boston-based fund manager at Pioneer Investment Management Inc., which oversees about $230 billion. “It might might be a while before we emerge from this period of uncertainty. I’ve noticed that pattern of end-of-day volatility and wonder if there are programs that kick in at the end of the day that contribute to that.”

     The S&P 500 fell to 1,877.07 as of 4 p.m. in New York, following a 2 percent rebound on Friday. Equities are on track for their worst January since 2009 amid concern China’s slowdown will weigh on global growth, with plunging oil prices exacerbating that angst. The U.S. benchmark sank to a 21-month low last week before rallying.

     Halliburton Co. declined 3 percent Monday after posting a quarterly loss, and Exxon Mobil Corp. slid amid the gyrations in crude oil. McDonald’s Corp. gained after the fast-food giant’s earnings beat analysts’ forecasts, while Tyco International Plc surged 12 percent after Johnson Controls Inc. agreed to merge with the company.

     In Europe, the Stoxx 600 Index fell 0.6 percent after surging 5 percent over the previous two sessions. Seadrill Ltd. led the decline, tumbling 8.9 percent after the world’s biggest crude exporter said it’s keeping up investments in energy projects despite oil’s slump. A gauge of mining companies also dropped, while banks slid the most among industry groups.

     “It’s the same old stuff today, the market’s being driven mostly by oil,” said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management, which oversees about $27 billion. “I don’t think that relationship is justified. I’m not as convinced that it’s a great indication of where the global economy is headed and therefore where the stock market is headed, but obviously a lot of the investment universe disagrees.”

     In Asia, equities rose, with Japanese and Australian shares driving the MSCI Asia Pacific Index up 1.1 percent in a second day of gains. The Topix index added 1.3 percent in Tokyo, even as the yen strengthened. Hong Kong’s Hang Seng Index gained 1.4 percent.

     After extending gains earlier in the session, the retreat in West Texas Intermediate crude really got going during the European day, with futures falling 5.8 percent to $30.34 a barrel by the close of trading in New York. Brent crude lost 5.2 percent to $30.50 in London, after jumping 10 percent on Friday.

     Saudi Arabian Oil Co. is maintaining investment in oil and natural gas projects as it studies options to sell shares in its parent company and refining and chemical operations, Chairman Khalid Al-Falih said Monday. The state-run producer, known as Saudi Aramco, can survive low oil prices for “a long, long time,” he told reporters in Riyadh, fueling concern that the global oil glut will persist.

     Gold advanced as investors zeroed in on the precious metal’s attractiveness as a haven investment. Bullion for immediate delivery rose 1 percent to $1,108.80 an ounce, according to Bloomberg generic pricing. Gold climbed 0.8 percent last week as the turmoil in global stock markets renewed interest in the metal as a store of value.

     Copper in London fell 0.6 percent to $4,417 a metric ton, while nickel dropped 1.7 percent to $8,550 a ton. The London Metals Exchange’s metals gauge fell 0.6 percent, while the Bloomberg Commodity Index slipped 1 percent after rallying last week.

     The euro rose for the first time in four days as the revival of risk aversion renewed bids for low-yielding, haven currencies. The shared currency climbed with the yen and the Swiss franc as investors unwound overseas bets funded in those currencies and channeled cash into government bonds.

     Traders are jittery ahead of central bank meetings in the U.S., Japan and New Zealand this week, with speculation mounting policy makers will have to address the volatile start to 2016 trading and its impact on the world economy. The prospect of another interest-rate cut from the Reserve Bank of New Zealand before the end of June has weighed on the local dollar, which dropped 0.7 percent on Monday.

     Japan’s currency has gained versus all of its 16 major counterparts this year as a China-led stock selloff and the tumble in oil prices bolstered the currency’s appeal. Hedge funds and other large speculators raised net bullish yen positions to the highest level in almost four years last week. The BOJ is scheduled to make a statement on monetary policy Jan. 29.

     The Loonie and Mexico’s peso declined with the ruble as currencies of commodity-producing nations fell with crude. Australia’s dollar weakened 0.7 percent.

     U.S. Treasuries rose for the first time in three days, with the 10-year yield slipping to 2.01 percent. Thirty-year bond yields declined three basis points to 2.80 percent.

     While the Fed’s Open Market Committee is set to review rates Jan. 27, traders aren’t pricing in the probability of the next increase until September. Futures prices indicate U.S. rates will rise to 0.62 percent by the end of this year, which implies about one increase in 2016.

     The yield on 10-year German bunds fell one basis point, or 0.01 percentage point, to 0.47 percent, and rates on similar maturity Japanese notes were down the same amount to 0.23 percent.

     “We saw a pretty simultaneous slump in oil and equity futures,” said John Davies, an interest-rate strategist at Standard Chartered in London. “U.S. Treasury yields took the cue accordingly and the curve has bull flattened in response,” he said referring to longer-dated bond yields falling faster than those on shorter-maturity debt.

     The MSCI Emerging Markets Index rose 0.8 percent to bring its two-day climb to 4 percent. Benchmarks in Taiwan, Indonesia and the Philippines gained more than 1 percent while shares in the Gulf fell with oil. Growing speculation central banks will cut or avoid raising interest rates buoyed Asian markets in the midst of the worst start on record for global stocks. China’s Shanghai Composite Index, whose gyrations were the source of a lot of market tension in the first week of the year, added 0.8 percent.

     All but one of the 10 sub-groups in the developing-nation stocks gauge rose, led by industrial shares, which extended Friday’s advance, the most since August. The ruble, Colombia’s peso and the Turkish lira pushed a measure of emerging-market currencies down for the first time in three days, while most of their Asian peers strengthened.
 

Have a wonderful evening everyone.

 

Be magnificent!

“Knowledge is power. Information is liberating. Education is the premise of progress, in every society, in every family.”

Kofi Annan

As ever,

 

Karen

 

“Unity is strength… when there is teamwork and collaboration, wonderful things can be achieved.” Mattie Stepanek

 

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:

Lord Byron, poet, was born on this day in 1788.

She walks in beauty, like the night
Of cloudless climes and starry skies,
And all that’s best of dark and bright
Meet in her aspect and her eyes;
Thus mellowed to that tender light
Which heaven to gaudy day denies.

One shade the more, one ray the less,
Had half impaired the nameless grace
Which waves in every raven tress
Or softly lightens o’er her face,
Where thoughts serenely sweet express
How pure, how dear their dwelling-place.

And on that cheek and o’er that brow
So soft, so calm, yet eloquent,
The smiles that win, the tints that glow
But tell of days in goodness spent,
A mind at peace with all below,
A heart whose love is innocent.

              -George Gordon, Lord Byron

On January 21, 1821, Lord Byron wrote in his Ravenna Journal:

  Rode out, as usual, and fired pistols.  Good shooting  – broke four common, and rather small, bottles, in four shots, at fourteen paces, with a common pair of pistols and indifferent powder…

  Tomorrow is my birthday – that is to say, at twelve o’ the clock, midnight, i.e., in twelve minutes, I shall have completed thirty and three years of age!!! –and I go to my bed with a heaviness of heart at having lived so long, and to so little purpose.

  It is three minutes past twelve.  “  ‘Tis the middle of the night by the castle clock” [the opening line of Coleridge’s Christabel], and I am now thirty-three!

PHOTOS OF THE DAY

A water drone demonstrates maritime salvage by flying a lifesaver to a boy in the water at the world’s largest watersports trade fair, BOOT, in Duesseldorf, Germany, Friday. Martin Meissner/AP

DHL’s Twisters & Extra 300 perform during the second day of the Bahrain Air Show 2016 at Sakhir Friday. Hamad I Mohammed/Reuters

Market Closes for January 22^nd, 2016

Market Index	Close	Change
Dow Jones	16093.51	+210.83   +1.33%
S&P 500	1906.90	+37.91   +2.03%
NASDAQ	4591.180	+119.124   +2.66%
TSX	12389.58	+353.72
		+2.94%

International Markets

Market Index	Close	Change
NIKKEI	16958.53	+941.27
		+5.88%
HANG SENG	19080.51	+538.36
		+2.90%
SENSEX	24435.66	+473.45
		+1.98%
FTSE 100	5900.01	+126.22
		+2.19%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.319	1.258
CND. 30 Year Bond	2.101	2.017
U.S.    10 Year Bond	2.0554	2.0259
U.S. 30 Year Bond	2.8261	2.8064

Currencies

BOC Close	Today	Previous
Canadian $	0.70811	0.70024
US $	1.41220	1.42807
Euro Rate 1 Euro=		Inverse
Canadian $	1.52492	0.65577
US $	1.07982	0.92608

Commodities

Gold	Close	Previous
London Gold Fix	1096.25	1096.50
Oil	Close	Previous
WTI Crude Future	30.99	28.28

Market Commentary:

Canada

By Joseph Ciolli

     (Bloomberg) — A rally in the price of crude oil and speculation central banks around the world are prepared to tamp down financial-market volatility fueled the biggest gain since November 2011 for Canadian stocks.

     The Standard & Poor’s/TSX Index jumped 2.9 percent to 12,389.58 at 4 p.m. in Toronto, capping the gauge’s first weekly gain of the year. Nine of the index’s 10 main industries rose more than 1.1 percent, with energy, utility and industrial shares the biggest gainers. The S&P/TSX, which entered a bear market two weeks ago, fell on Wednesday to its lowest level since August 2012. It’s down 4.8 percent in 2016.

     Canada joined a rebound among global equities sparked by speculation the European Central Bank and Bank of Japan are poised to add to stimulus at the same time China reassured investors it would do more to damp volatility. Crude oil surged 8.9 percent, bringing its two-day increase past 20 percent.

     Canada’s December inflation rate was the fastest in a year, led by double-digit gains for fruit and vegetables and a reduced drag from gasoline prices. The consumer price index rose 1.6 percent in December from a year ago following the rate of 1.4 percent the prior month, Statistics Canada said Friday from Ottawa. Canada’s currency strengthened for a third straight day against its U.S. peer following 13 straight days of weakening. The so-called loonie is up 3 percent versus the greenback since Wednesday.

     All but one of the 55 companies in the S&P/TSX energy index rose as the gauge climbed 5.5 percent. Baytex Energy Corp. surged 15 percent, while Paramount Resources Ltd. and Enerplus Corp. climbed at least 9.3 percent. Penn West Petroleum Ltd. rose 15 percent to the highest level in more than two weeks.

     Raw-materials producers increased 1.2 percent as a Bloomberg index of commodities rose the most since Aug. 27. Confor Corp. and Interfor Corp. gained more than 9.9 percent, while Western Forest Products Inc. and Lundin Mining Corp. climbed at least 5.8 percent.

     Barrick Gold Corp., the world’s largest producer of the metal, rose 2.2 percent even after it said it may book as much as $3 billion in impairment charges as a prolonged gold slump forces it to revise its price assumptions for 2016. The price of gold was little changed. The resource has slipped 3.8 percent since the start of November.

US

By Anna-Louise Jackson

     (Bloomberg) — The Standard & Poor’s 500 Index capped its strongest two-day rally in three months, amid speculation central banks around the world will act to support the global economy even as the Federal Reserve tightens policy.

     Energy companies led, posting their first weekly advance this year, with Schlumberger Ltd. and Valero Energy Corp. gaining at least 6.1 percent. Technology shares added 2.8 percent, with Apple Inc. rising the most since August. JPMorgan Chase & Co. climbed 3.1 percent to lead a rebound by banks. American Express Co. slumped 12 percent, the biggest drop since 2009, after its quarterly earnings fell 38 percent. 

     The S&P 500 gained 2 percent to 1,906.90 at 4 p.m. in New York, the best back-to-back increase since October after turning positive for the week. The Dow Jones Industrial Average climbed 210.83 points, or 1.3 percent, to 16,093.51, with the decline in American Express a 52-point drag. The Nasdaq Composite Index increased 2.7 percent, the most since September. About 9.1 billion shares traded hands on U.S. exchanges, 20 percent above the three-month average.

     “I think we’re a heck of a lot closer to the bottom, and I think it’s a better time to put your foot in the water, but don’t back up the truck yet,” said Andrew Brenner, head of international fixed income for National Alliance Capital Markets in New York. “It looks like central banks are on the warpath against weakness. That’s going to put a real risk-on component to today.”

     Equities continued a snap-back from the worst start to a year since 2009, hammered as oil sank to 12-year lows amid rising supplies and concern that flagging global growth, particularly in China, will drag on the U.S. economy. Crude rallied Friday to its biggest two-day advance since 2008.

     The S&P 500 rebounded yesterday from a 21-month low as European Central Bank President Mario Draghi signaled the potential for more stimulus as early as March. Sentiment also received a boost overnight from speculation that the Bank of Japan is considering additional easing.

     The benchmark ended a streak of weekly declines at three, rising 1.4 percent in the holiday shortened period. The S&P 500 on Wednesday dipped below a level technical analysts call oversold, meaning a selloff has gone too far. A rout stoked by concerns about China’s slowdown and plunging oil had wiped off as much as $2.45 trillion from U.S. equities this year.

     “It’s a classic oversold bounce after Draghi’s comments yesterday and the noise on Japanese stimulus overnight,” said Veronika Pechlaner, who helps oversee $10 billion at Ashburton Investments, part of FirstRand Group. “It’s become harder and harder for stimulus to really support the economic fundamentals. But at least we have a bit more stable trading environment for a couple of days.”

     The Chicago Board Options Exchange Volatility Index fell 16 percent Friday to 22.34, the biggest drop in seven weeks. The measure of market turbulence known as the VIX has surged about 23 percent so far in 2016, on pace for its biggest climb since a record-setting jump in August.

     Investors are keeping watch on corporate earnings to gauge the health of the U.S. economy. Analysts estimate profits of S&P 500 firms slumped 6.3 percent in the fourth quarter, better than the 7 percent drop expected a week ago. Of the 73 companies that have reported results so far, 78 percent beat earnings projections while 48 percent exceeded sales forecasts. McDonald’s Corp., Apple, Facebook Inc. and Boeing Co. are among more than 130 companies due to report next week.

     Among the few pieces of data before the Fed’s two-day policy meeting next week, a report today showed purchases of previously owned homes rose more than projected in December, helped in part by warmer weather to finish the best year since 2006.

     Policy makers have made it clear that the pace of interest- rate increases will depend on progress in the economy. While chances for a January Fed rate boost have stayed low, odds for a March lift have fallen since the start of the year, with traders pricing in a 26 percent chance, compared with even odds at the start of the year.

     All of the S&P 500’s 10 main groups rose, led by a 4.3 percent surge for energy companies. Technology stocks climbed 2.8 percent, the most in three months, with Apple’s 5.3 percent gain contributing the most to the group’s increase. Phone and financial companies gained at least 1.9 percent.

     The energy producers had the best back-to-back rally in almost five months. Williams Cos. soared the most in the S&P 500 today, up 23 percent. The shares are still down 23 percent this year. Oneok Inc. and Kinder Morgan Inc. rose more than 10 percent, while Chevron Corp. added 3.1 percent to take its two- day climb to 5.8 percent.

     Qorvo Inc. rallied 8.5 percent, the most since November, following a report that the manufacturer could pick up a power amplifier design win for the Samsung Galaxy S7 in the first quarter. Hewlett Packard Enterprise Co. added 7.6 percent, bringing its two-day gain to almost 11 percent.

     Consumer discretionary companies rose 1.7 percent, with Viacom Inc. adding 3.9 percent. Walt Disney Co. jumped 3.1 percent, its biggest gain since August. D.R. Horton Inc., which is scheduled to release earnings before the market opens on Monday, rose 4 percent. Amazon.com Inc. contributed most to the group’s gains, rising 3.7 percent for its best since October.

     Banks in the benchmark rebounded from four days of declines. JPMorgan Chase and Citigroup Inc. rose more than 2.2 percent. The KBW Bank Index gained 1.6 percent after sliding 6.5 percent during the prior four sessions.

     Industrial shares lagged as General Electric Co.’s 1.2 percent slide weighed on the group. The company reported fourth- quarter sales that missed analysts’ estimates, sending the shares down as much as 3 percent. Union Pacific Corp. fell 1.4 percent to the lowest since April 2013. The S&P 500 Railroads Index fell for a fifth straight day, bringing its losses this week to 4.2 percent.

     American Express Co. lost 12 percent, the most in almost seven years, as fourth-quarter profit declined, driven by a drop in revenue and higher expenses. The stock traded at levels last seen in 2012.

     Freeport-McMoRan Inc. dropped 9 percent, even as the raw- materials group rose 1.8 percent. The world’s biggest publicly traded copper producer is scheduled to report on Tuesday what analysts predict will be its fifth straight quarterly loss. Alcoa Inc. slipped 3.1 percent after rallying 5.2 percent yesterday.

 

Have a wonderful weekend everyone.

 

Be magnificent!

Is there any motion in a straight line?  A straight line infinitely projected becomes a circle,

it returns to the starting point.  You must end where you begin; and as you begin in God,

you must go back to God.  What remains?  Detail work.  Through eternity you have to do the detail work.

Swami Vivekananda

As ever,

 

Carolann

Alone we can do so little; together we can do so much.

-Helen Keller, 1880-1968

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:

Supernova Has Energy of Hundreds of Billions of Suns

By SINDYA N. BHANOO, NY TimesAn artist’s impression of the supernova ASASSN- 15lh as it would appear from an exoplanet about 10,000 light-years away. CreditWayne Rosing

Astronomers have discovered a giant ball of hot gas, billions of light years away, that is radiating the energy of hundreds of billions of suns. The ball may be the most powerful supernova ever seen, a study in the journal Science reports. At the center is an object about 10 miles in diameter that scientists think might be a rare type of star called a magnetar. The gas ball, 3.8 billion light years away, was spotted through the All Sky Automated Survey for Supernovae collaboration. The project, led by researchers atOhio State University, aims to find supernovae using various small telescopes in the Northern and Southern Hemispheres.

PHOTOS OF THE DAYA skier makes his way through a snowy winter landscape on the 1456-meter-high Grosser Arber mountain near Bayerisch Eisenstein, southern Germany, Thursday. Armin Weigel/dpa/AP

A crocodile swims in a privately-owned pool in Islamorada, Fla., Thursday. The Florida Fish and Wildlife Conservation Commission assisted in the removal of the crocodile. Lieutenant David Carey/Monroe County Sheriff’s Office/AP

Market Closes for January 21st, 2016

Market Index	Close	Change
Dow Jones	15882.68	+115.94     +0.74%
S&P 500	1868.68	+9.35   +0.50%
NASDAQ	4472.055	+0.369   +0.01%
TSX	12044.62	+201.51
		+1.70%

International Markets

Market Index	Close	Change
NIKKEI	16017.26	-398.93
		-2.43%
HANG SENG	18542.15	-344.15
		-1.82%
SENSEX	23962.21	-99.83
		-0.41%
FTSE 100	5773.79	+100.21
		+1.77%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.258	1.162
CND. 30 Year Bond	2.017	1.937
U.S.    10 Year Bond	2.0259	2.0102
U.S. 30 Year Bond	2.8064	2.7747

Currencies

BOC Close	Today	Previous
Canadian $	0.70024	0.69133
US $	1.42807	1.44649
Euro Rate 1 Euro=		Inverse
Canadian $	1.55325	0.64381
US $	1.08765	0.91941

Commodities

Gold	Close	Previous
London Gold Fix	1096.50	1101.75
Oil	Close	Previous
WTI Crude Future	28.28	26.55

Market Commentary:

Canada

By Anna-Louise Jackson

     (Bloomberg) — Energy shares led Canadian stocks higher to their biggest gain of 2016, as comments by Mario Draghi fueled speculation that the European Central Bank may bolster its stimulus programs as early as March.

     The S&P/TSX jumped 1.6 percent to close at 12,035.86 at 4:00 p.m. in Toronto. The index rallied the most since Dec. 16 as energy companies posted the biggest gains among the 10 main industries, followed by utilities and consumer-staples stocks. The benchmark gauge, which entered a bear market two weeks ago, touched yesterday its lowest level since August 2012. It’s down about 7.5 percent year-to-date.

     Global equities rebounded after $1.1 trillion was wiped from the value of stocks yesterday as investor sought reassurance from Draghi that downside risks to the euro-area economy have increased since the year began. The central bank kept interest rates unchanged at record lows. That followed a decision Wednesday from Bank of Canada policy makers, who kept their benchmark interest rate unchanged, saying stronger U.S. demand, a weaker currency and two rate cuts last year are leading the economy out of an oil slump.

     Canada’s currency strengthened for a second straight day against its U.S. peer following 13 days of weakening.

     Energy companies surged 5.4 percent, the most since August, after four days of declines. Baytex Energy Corp. jumped almost 24 percent, its biggest gain ever. Paramount Resources Ltd. soared 28 percent before trading halted temporarily and the stock closed 15 percent higher. Similarly, Penn West Petroleum Ltd. rose 14 percent after its chief financial officer said at a conference the company expects additional asset sales this year.

     Utilities stocks advanced 2.2 percent, led by a 5.9 percent gain for Transalta Corp. Shares of consumer-staples jumped 2.1 percent, with Alimentation Couche-Tard Inc. and George Weston Ltd. both adding at least 2.9 percent.

     Raw-materials companies slumped as much as 2.5 percent, briefly touching levels last seen in 2005, before paring the losses to close 0.8 percent lower. Industrials stocks fell for a third straight day as Bombardier Inc. tumbled 9.2 percent to the lowest since April 1991 after United Continental Holdings Inc. said it would buy Boeing Co.’s smallest jetliners, snubbing Bombardier’s C Series.

     Canadian Pacific Railway Ltd., which is attempting to acquire Norfolk Southern Corp., sank as much as 7.4 percent after reporting fourth-quarter earnings that missed analyst estimates as revenue fell amid declines in cargo including crude, metals and minerals. The stock closed down 0.9 percent.

US

By Dani Burger

     (Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index recovering from a 21-month low, as energy shares rallied with oil and the European Central Bank signaled the potential for more stimulus measures amid uncertain prospects for global growth.

     Chevron Corp. climbed 2.6 percent and Home Depot Inc. surged 3.3 percent as energy and consumer discretionary companies paced the rebound from yesterday’s selloff. Verizon Communications Inc. gained 3.3 percent after its profit beat estimates. Banks in the S&P 500 slumped, with Bank of America Corp. falling 2.4 percent. Union Pacific Corp. lost 3.6 percent after its earnings missed forecasts.

     The S&P 500 rose 0.5 percent to 1,868.99 at 4 p.m. in New York, trimming an earlier 1.6 percent climb in a rebound from the lowest level since April 2014. The Dow Jones Industrial Average gained 115.94 points, or 0.7 percent, to 15,882.68. The Nasdaq Composite Index was little changed after rising as much as 1.5 percent, hampered in part by Netflix Inc.’s 5 percent retreat. About 9.9 billion shares traded hands on U.S. exchanges, 32 percent above the three-month average.

     “It’s good to see a reversal, to know that there are still buyers out there when things are oversold,” said Aaron Jett, vice president of global equity research at Los Angeles-based Bel Air Investment Advisors LLC. “It’s a jittery market, especially in oil. I find it difficult for people to invest long with a lot of confidence right now because there is a lot of pressure to the downside. We’re speaking with clients quite frequently — there’s a lot of nervousness out there.”

     Equities alternated for a seventh day between gains and losses amid the S&P 500’s worst start to a year since 2008. Sentiment has been weighed by concerns that the slide in crude oil and weakness in China will drag down global growth, offset by occasional bouts of optimism that policy makers will act to help stem the rout. Calling the country’s market “not yet mature,” China’s Vice President Li Yuanchao said today the government would boost regulation in an effort to avoid too much volatility.                        

     European Central Bank President Mario Draghi said during a press conference Thursday that downside risks to the euro-area economy have increased since the year began, and the central bank may need to bolster its stimulus programs as soon as March amid rising concerns about the recovery. The bank kept interest rates unchanged.

     Thursday’s rebound brought a respite for investors from Japan to Germany and Brazil who have watched their stock markets tumble into bear territory. The S&P 500 has fallen 8.6 percent year to date, and is down about 12 percent from a record set in May. The gauge is on track for its fourth straight weekly decline, which would be the longest streak since October 2014.

     Investment managers are warning that the benchmark could drop another 10 percent and oil could fall as low as $20 a barrel. Jeffrey Rottinghaus, whose T. Rowe Price mutual fund beat 99 percent of rivals over the past year, also said the U.S. economy may slip into a mild recession.

     “I think people are starting to believe that while we may not be at an absolute bottom, we may be close,” said Peter Jankovskis, who helps oversee $1.9 billion as co-chief investment officer of Lisle, Illinois-based OakBrook Investments. “Oil has been a very strong theme, though I think certainly in months that are heavy in central bank decisions that central bank activity has to a degree overwhelmed oil.”                         

     Investors are keeping close watch on progress in the economy to gauge the trajectory of U.S. interest rates before the Federal Reserve’s meeting next week. Data today showed the number of applications for unemployment benefits unexpectedly increased last week to a six-month high, indicating tempered progress in the labor market.  

     Expectations for a rate hike at the Fed’s January meeting have been low since December’s increase in borrowing costs. Now, those for March are falling too, with traders trimming the chances to 20 percent, from even odds at the end of last year.

     Corporate earnings may also offer cues on the strength of the U.S. economy, with the few companies that have reported so far mostly exceeding estimates. General Electric Co. is scheduled to report results on Friday. Analysts predict profits for S&P 500 members slumped 7 percent in the final three months of 2015, while sales fell 3.1 percent.

     The Chicago Board Options Exchange Volatility Index fell 3.3 percent Thursday to 26.69. The measure of market turbulence known as the VIX has surged about 47 percent so far in 2016, and is on track for its biggest climb since a record-setting jump in August.

     Seven of the S&P 500’s 10 main industries climbed, with energy and phone companies rising more than 2.4 percent. Consumer discretionary shares added 1.4 percent. Health-care and financial shares slipped, while utilities were little changed.

     The energy group reversed Wednesday’s 2.9 percent drop as crude rallied more than 4.2 percent. Devon Energy Corp. jumped 12 percent after sliding 8 percent yesterday. Kinder Morgan Inc. soared 16 percent after saying it will reduce full-year 2016 capital outlays by $900 million to cope with the collapse in commodities markets.

     CBS Corp. climbed 4 percent to lead gains among consumer discretionary shares. Home Depot had its best increase in two months after the home-improvement retailer fell as much as 5.2 percent Wednesday, briefly reaching a three-month low.

     Google parent Alphabet Inc. rose 1.1 percent to help boost technology companies. Semiconductor and equipment companies in the benchmark increased 1.2 percent. Xilinx Inc. rallied 8.6 percent after it amended contracts with five top executives to provide benefits in case of a change in control. Micron Technology Inc. climbed 8 percent, rising for just the second time in 11 sessions.

     Banks in the benchmark slid 0.9 percent, reversing a rally of as much as 1.6 percent. Bank of America slumped for a fourth day, extending its decline to nearly 11 percent over the period. Fifth Third Bancorp fell 4.8 percent to its lowest since 2013, even as its fourth-quarter profit exceeded analysts’ estimates.

     Health-care companies retraced Wednesday’s late-day gains, led by biotechnology companies. Alexion Pharmaceuticals Inc. and Biogen Inc. lost 2.7 percent. In more back-and-forth action, the Nasdaq Biotechnology Index sank 2.2 percent after rising 2.7 percent yesterday.

Have a wonderful evening everyone.

 

Be magnificent!

Sensibility is the capacity to feel,

recognize, and distinguish the most tiny and subtle changes.

Swami Prajnanpad

As ever,

Carolann

 

Either I will find a way, or I will make one.

                    -Philip Sidney, 1554-1586

 

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:

I usually listen to CNBC’s Squawk Box on my ride in to the office in the morning to get the market futures and financial news.  Today, I switched stations in order to listen to the Symphony station on Sirius satellite radio.  It turned out to be a good move – instead of listening to talking heads squawking about their negative perceptions on the status quo, I listed to Schumann’s Symphony No. 1 in B flat major.  A beautiful piece of music that instills calm and happiness…

PHOTOS OF THE DAY

A child pulls a trolley next to the Hahnenkamm-Rennen Stadium in Kitzbuehel, Austria, Wednesday. An alpine skiing men’s World Cup downhill will be held here on Saturday. Pier Marco Tacca/AP

Horse rider Izzy Carroll tends a horse after a frosty morning ride at Lawney Hill Racing stables in Aston Rowant, southern England, Wednesday. Eddie Keogh/Reuters

Market Closes for January 20^th, 2016

Market Index	Close	Change
Dow Jones	15766.74	-249.28     -1.56%
S&P 500	1859.33	-22.00   -1.17%
NASDAQ	4471.686	-5.264   -0.12%
TSX	11843.11	-159.13
		-1.33%

International Markets

Market Index	Close	Change
NIKKEI	16622.35	+206.16
		+1.26%
HANG SENG	18886.30	-749.51
		-3.82%
SENSEX	24062.04	-417.80
		-1.71%
FTSE 100	5673.58	-203.22
		-3.46%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.162	1.179
CND. 30 Year Bond	1.937	1.991
U.S.    10 Year Bond	2.0102	2.0556
U.S. 30 Year Bond	2.7747	2.8262

Currencies

BOC Close	Today	Previous
Canadian $	0.69133	0.68627
US $	1.44649	1.45716
Euro Rate 1 Euro=		Inverse
Canadian $	1.57266	0.63586
US $	1.08723	0.91977

Commodities

Gold	Close	Previous
London Gold Fix	1101.75	1086.25
Oil	Close	Previous
WTI Crude Future	26.55	28.46

Market Commentary:

Canada

By Anna-Louise Jackson and Dani Burger

     (Bloomberg) — Canadian stocks fell to the lowest level since 2013 even after an afternoon rally trimmed what earlier had been the biggest decline in four years, as turmoil returned to global markets rattled by a renewed rout in crude and continued concerns over China.

     The Standard & Poor’s/TSX Index slumped 1.3 percent to 11,843.11 at 4:00 p.m. in Toronto, as oil plunged below $27 a barrel. The gauge, which trimmed losses of as much as 3.9 percent on Wednesday, posted its 13th decline in the past 16 days to close at a level last seen in 2013. It entered a bear market two weeks ago and is down almost 9 percent year to date.

     “Today is no different than the last several weeks — Canadian equities are especially hard hit by energy and commodity prices,” Audrey Kaplan, senior portfolio manager and head of international equities at Federated Global Investment Management Corp, said by phone. “Until we start to see some rebound there, it seems that the Canadian markets will be in a shaky, volatile ground.”

     The S&P/TSX trades at 13.7 times the forecast earnings for its members, below the index’s 15.3 average of the past five years. It’s less expensive than the S&P 500’s 15.1 multiple, and in line with developed markets in Europe, where the Stoxx 600 Index trades for 13.8 times estimated earnings.

     Bank of Canada policy makers kept their benchmark interest rate unchanged today and said stronger U.S. demand, a weaker currency and two rate cuts last year are leading the economy out of an oil slump.

     The benchmark rate on overnight loans between commercial banks remained at 0.5 percent, in a decision released Wednesday from Ottawa. Global growth will pick up in 2016, Canada’s job market remains resilient and stalling fourth-quarter growth was due to temporary factors, policy makers said.

     Eight of the Canadian benchmark’s 10 main industries declined. Shares of industrial companies fell 2 percent, led by Toromont Industries Ltd.’s 4.2 percent slump, the most in almost two years. With crude trading at a 12-year low, energy companies trimmed a decline of as much as 6.7 percent to close down 2 percent, at a level last seen in September 2004.

     “It’s not just stock prices, but the currency as well,” Kaplan said. “The Canadian dollar is cheap, but we’re still looking for a better valuation. It’s hard to tell if the level is fully pricing in the oil price trend at this point. For those who don’t have Canadian exposure, we’re not sure it’s time yet to buy.”

     The currency strengthened for the first time since Jan. 1 against its U.S. peer.

     Paramount Resources Ltd. trimmed a 21 percent selloff, falling 5.8 percent to an 18-year low on news it may sell certain midstream assets. Similarly, Husky Energy Inc. tumbled as much as 14 percent, the most ever, after it said Tuesday it’s suspending dividend payments and cutting spending. The stock ended the session down 3.3 percent.

     Raw-materials companies rose 0.8 percent after a four-day selloff, led by gains of at least 8 percent for B2Gold Corp. and Kinross Gold Corp. Iamgold Corp. advanced 9.5 percent after an analyst at Raymond James upgraded the stock to market perform from underperform. New Gold Inc. rose 8.4 percent, the most in three months, after the company said 2015 gold output exceeded it’s prior outlook.

     Health-care companies also gained for a second straight day, adding 0.1 percent.

US

By Dani Burger and Anna-Louise Jackson

     (Bloomberg) — U.S. stocks fell, with the Standard & Poor’s 500 Index reaching a 21-month low, following a renewed selloff across stocks worldwide as skepticism about the strength of the global economy intensified.

     A late-day rally paced by health-care and small-cap shares helped trim declines, with the Nasdaq Composite Index briefly erasing a drop of as much as 3.7 percent. The Dow Jones Industrial Average and S&P 500 cut their worst losses by more than half. Energy companies sank further into five-year lows as oil plunged. International Business Machines Corp. fell to the lowest since 2010 after its earnings forecast missed projections.

     The S&P 500 dropped 1.2 percent to 1,859.33 at 4 p.m. in New York, closing at its lowest level since April 2014. The gauge pared a slide of more than 3.6 percent. After falling more than 560 points, the Dow finished down 249.28 points, or 1.6 percent, to 15,766.74. The Nasdaq Composite slipped 0.1 percent, and the Russell 2000 Index wiped out a 3.7 percent selloff to close 0.5 percent higher.

     “We were oversold and we didn’t keep falling off the table,” said Walter “Bucky” Hellwig, who helps manage $17 billion as a senior vice president at BB&T Wealth Management in Birmingham, Alabama. “The last-hour strength is positive, and I think it’s due to the fact that investors are saying, ‘This thing is oversold, I’m going to put some money to work,’ and it’s worked out better than buying it on the up days and then watching it disappear.”

     Even with the final-hour rebound, the selling remained broad-based, with six of the S&P 500’s 10 main groups falling at least 1.3 percent. Exxon Mobil Corp. sank 4.2 percent, the most since August, and banks fell for a third day with Citigroup Inc. and Bank of America Corp. down more than 3.4 percent.

     Global equities’ worst-ever start to a year deepened as oil continued its collapse and a slowdown in China weighs on sentiment. Japanese shares joined benchmark indexes in China and Europe in tumbling into a bear market today. West Texas Intermediate crude futures slumped 6.7 percent to $26.55 a barrel.

     “What the market is focused on is Chinese hard-landing fear, oil prices and the strength in the dollar,” said Phil Orlando, who helps oversee $360 billion as chief equity-market strategist at Federated Investors Inc. in New York. “We haven’t hit bottom yet. That’s when we start talking about the need to retest the summer lows and holding at that level to take us to long-term support.”

     About $2.2 trillion has been wiped off the value of U.S. stocks this year through yesterday, with the S&P 500 down 9 percent. And any rallies are getting shakier: nerves are weakening in a market where everything from China to oil and the Federal Reserve are proving capable of knocking equities down at any time. It’s a reversal of the optimism that underpinned the last three years of the bull market, when traders viewed bad news as transitory and used declines as opportunities to buy the dip.

     The S&P 500’s plunge triggered a technical signal that indicates it’s oversold. The gauge’s relative strength index, which measures whether gains or losses have been too fast to sustain, dipped to 30, a threshold that indicates a rebound may materialize. The RSI last fell below 30 on Jan. 13. The prior time it was that low was on Aug. 25, when the S&P 500 hit a bottom and rallied 6.5 percent over the next three days.

     The main U.S. equity benchmark is nearly 13 percent below its all-time high set in May, after rallying to within 1 percent of the record as recently as Nov. 3. The S&P 500 trades at 14.9 times the forecast earnings of its members, in line with the index’s average of the past five years. It’s more expensive than developed markets in Europe, where the Stoxx 600 Index trades for 13.6 times estimated earnings.

     Along with valuations, investors are keeping close watch on progress in the economy to gauge the potential pace of future interest-rate increases by the Federal Reserve. The central bank’s next policy meeting concludes a week from today.

     Data today showed the cost of living in the U.S. dropped in December, led by a slump in commodities that’s roiling global markets. Excluding food and fuel, the so-called core index rose less than forecast with the smallest gain in four months. A separate report showed new-home construction unexpectedly fell in December, indicating the industry lost some momentum entering 2016.

     Concerns about weaker growth are overshadowing the corporate earnings season, where most of the few companies that have reported so far have exceeded estimates. Verizon Communications Inc., General Electric Co. and Starbucks Corp. are among S&P companies scheduled to release financial results this week. Analysts predict profits slumped 7 percent in the final three months of 2015, while sales fell 3.1 percent.

     “A few people are calling this a good buying opportunity, but nobody seems willing to really stick their neck out,” said Ross Yarrow, director of U.S. equities at Robert W. Baird & Co. in London. “All the concerns go back to China and oil. We’re already seeing a big impact in the lack of trade across the world. There isn’t much out there that can really support a lasting rally.”

     The Chicago Board Options Exchange Volatility Index rose 5.9 percent Wednesday to 27.59, after jumping more than 23 percent. The measure of market turbulence known as the VIX has surged 51 percent so far in 2016. About 12.5 billion shares traded hands on U.S. exchanges, 67 percent above the three-month average.                       

     Nine of the S&P 500’s main groups fell today. Energy companies dropped 2.9 percent, while utilities and financial shares tumbled more than 2.1 percent to lead declines. Devon Energy Corp. fell 8.1 percent, while ConocoPhillips and Halliburton Co. declined more than 4.4 percent.

     Financial companies were the biggest drag on the benchmark index, led by banks. JPMorgan Chase & Co. dropped 2.6 percent, Bank of America fell to a more than two-year low and Citigroup sank to a three-year nadir. Among the broader group, Charles Schwab Corp. decreased 4.7 percent.

     Consumer discretionary companies, one of the few industries to finish with gains Tuesday, erased the advance today, falling 1 percent. Wynn Resorts Ltd. dropped 4.7 percent, paring an earlier 11 percent tumble. Netflix Inc. was little changed, after earlier losing 10 percent. The online video company reported stronger-than-expected subscriber additions worldwide last quarter, though growth in U.S. subscribers was less than anticipated.

     Tiffany & Co. and Target Corp. slumped more than 2.3 percent as retailers in the benchmark fell to a three-month low. Home Depot Inc. lost 2.8 percent, falling for the fourth time in five days.

     IBM paced the retreat among technology companies, down 4.9 percent, while Cisco Systems Inc. and Yahoo! Inc. decreased more than 3.2 percent. Apple Inc. erased a 3.4 percent selloff to close little changed. Twitter Inc. surged as much as 14 percent from an all-time low yesterday amid takeover speculation.

     Drug developers were outliers amid the market’s pullback, with the Nasdaq Biotechnology Index erasing an earlier 3.3 percent drop to rally 2.7 percent. Celgene Corp. and Regeneron Pharmaceuticals Inc. increased more than 3.3 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

We cross the infinite with every step, and encounter the eternal with every second.

Rabindranath Tagore

As ever,

 

Carolann

 

People may hear your words, but they feel your attitude.

                                    -John C. Maxwell, 1947-

 

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:

from  A COUNTRYWOMAN’S NOTES:

Some people are far more sensitive to light than others and are at their happiest when there is plenty of sunlight and they can throw open the windows and walk outside.  None of us is immune to seasonal changes, though we may think we are, but we are certainly less so than plants and animals.  Fading and increasing light tells them to hibernate or drop their leaves, mate or be active.  I welcome winter as a time when I can slightly change my way of life, stay indoors more, read, and give way to a lethargy I do not have in summer.  I am aware that the light as it meets our eyes produces a set of nerve impulses that travel  to the gland between the hemispheres of our brain, and that the hormones in this gland have a powerful effect on our sleep as well as our mood, so perhaps my lethargy is quite natural.  “A sad tale’s best for winter”, wrote

Shakespeare.  I believe he meant this to fit the winter mood of the reader.  I have just talked to a friend who is moving back to London after two winters and a summer in the country.  She says she feels depressed in the country and wants the companionship and activity of town life.  I am wondering if it is really the lack of sunlight through the naturally short days that she is missing rather than the glitter of town lights.  Soon spring will be with us and the days much longer, so our spirits should be lightened too. –Rosemary Verey, Gryffon Publications, 1989.

PHOTOS OF THE DAY

Waves crash on the seafront at the Corniche in Beirut, Lebanon on Tuesday. Hassan Ammar/AP

 

This picture taken through the window of a car shows a couple standing under an umbrella to shield themselves from heavy rain on the seafront at the Corniche, or waterfront promenade, in Beirut, Lebanon, Tuesday. Hassan Ammar/AP

Market Closes for January 19^th, 2016

Market Index	Close	Change
Dow Jones	16016.02	+27.94     +0.17%
S&P 500	1881.33	+1.00   +0.05%
NASDAQ	4476.949	-11.468   -0.26%
TSX	12002.24	+60.07
		+0.50%

International Markets

Market Index	Close	Change
NIKKEI	17048.37	+92.80
		+0.55%
HANG SENG	19635.81	+398.36
		+2.07%
SENSEX	24479.84	+291.47
		+1.21%
FTSE 100	5876.80	+96.88
		+1.68%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.179	1.163
CND. 30 Year Bond	1.991	1.984
U.S.    10 Year Bond	2.0556	2.0347
U.S. 30 Year Bond	2.8262	2.8140

Currencies

BOC Close	Today	Previous
Canadian $	0.68627	0.68747
US $	1.45716	1.45461
Euro Rate 1 Euro=		Inverse
Canadian $	1.59002	0.62892
US $	1.09118	0.91644

Commodities

Gold	Close	Previous
London Gold Fix	1086.25	1089.20
Oil	Close	Previous
WTI Crude Future	28.46	29.42

Market Commentary:

Canada

By Anna-Louise Jackson

     (Bloomberg) — Canadian stocks rose for only the third time this year, as Chinese growth data eased investor concern over a hard landing in the world’s second-largest economy a day before the central bank makes its interest-rate decision.

     Seven of the 10 main industries advanced, as the Standard & Poor’s/TSX Index gained 0.5 percent to close at 12,002.24 at 4:00 p.m. in Toronto. The gauge rebounded after slumping 1.1 percent yesterday when it fell to the lowest since June 2013. The index, which entered a bear market almost two weeks ago, has tumbled 7.8 percent year-to-date.

     More than half the market has put its money on the Bank of Canada cutting its benchmark interest rate back to a record low of 0.25 percent on Wednesday, as oil’s relentless collapse shows no signs of abating and weakness has cropped up elsewhere in the economy.

     Trading Tuesday was volatile, with the Canadian benchmark erasing early gains before rallying into the close to finish higher. The move mimicked action in global equities, as crude resumed its slump below $29 a barrel. The country’s currency weakened for a 13th straight day against its U.S. peer, falling to the lowest since April 2003.

     Canada’s largest consumer companies led Tuesday’s rally, gaining 1.5 percent, with Cogeco Cable Inc. rising 7.1 percent for its biggest advance in seven years. Technology shares increased 1.4 percent. Materials producers fell for a fourth consecutive day, slipping 2.1 percent to the lowest since May 2005 and down 7.9 percent year to date.

     Progressive Waste Solutions Ltd. jumped almost 11 percent, the most ever, to a level last seen in April. U.S.-based Waste Connections Inc. agreed to buy Ontario-based Progressive Waste Tuesday, moving the tax domicile for its garbage-hauling business to Canada. Labrador Iron Ore Royalty Corp. gained 15 percent, the most in seven months, after an analyst at Canaccord Genuity raised the stock to buy from hold.

     Baytex Energy Corp. tumbled 17 percent, the most ever, to a record low, while Silver Standard Resources Inc. slipped almost 14 percent to the lowest since March. Yamana Gold Inc. fell 8.1 percent, its fourth consecutive day of declines, after Macquarie Research downgraded the stock to neutral from the equivalent of buy. Iamgold Corp. fell 13 percent to the lowest since July after the mining company cut its guidance.

US

By Dani Burger and Anna-Louise Jackson

     (Bloomberg) — The Standard & Poor’s 500 Index closed a volatile session little changed, near the lowest level since August as gains in consumer shares offset declines in commodity companies amid fresh signs of weakness in crude oil and corporate earnings.

     Stocks couldn’t sustain an opening rally and weakened throughout the day before rebounding after reaching the lows of August’s selloff. Selling intensified again in small-cap shares, and crude prices remained an influence on fragile sentiment. Chevron Corp. dropped 2.6 percent, and Bank of America Corp. also weighed, falling 1.5 percent. Procter & Gamble Co. added 2.3 percent, the most in six weeks. Netflix Inc. rose in after- hours trading following its quarterly report.

     The S&P 500 gained less than 0.1 percent to 1,881.33 at 4 p.m. in New York, after a whipsaw session that saw the gauge rise as much as 1.1 percent and fall 0.8 percent. The Dow Jones Industrial Average rose 27.94 points, or 0.2 percent, to 16,016.02. The Nasdaq Composite Index sank 0.3 percent, and the Russell 2000 Index dropped 1.3 percent to the lowest since July 2013. About 9.4 billion shares traded hands on U.S. exchanges, 27 percent above the three-month average.

     “The market got down to that 1,865 level again, and we did seem to gain momentum,” said Robert Pavlik, who helps oversee $9.1 billion as chief market strategist at Boston Private Wealth. “Once it hit that technical level, we saw the market turn around almost automatically. It’s a step in the right direction. Coming off a very oversold level, the fact that we held that level from September suggests we could have a near- term bounce.”

     U.S. shares had rallied early as European and Asian stocks rose amid speculation of further Chinese state stimulus aid. A report showed gross domestic product in the world’s second- largest economy expanded 6.9 percent in 2015, just shy of the government’s 7 percent target, and the least since 1990.

     Crude continued to fall Tuesday, with West Texas Intermediate futures losing 3.3 percent. The International Energy Agency trimmed its 2016 estimates for global oil demand amid weakness in China. Markets could “drown in oversupply,” sending prices even lower as demand growth slows and Iran revives exports with the end of sanctions, according to the agency.

     The S&P 500’s renewed selling sent the gauge toward a technical signal that indicates it’s oversold. Its relative strength index, which measures whether gains or losses have been too fast to sustain, fell to 30, a threshold indicating a rebound may materialize.

     The last time the RSI slipped below that level was on Jan. 13, the day before a 1.7 percent rally. The time prior to that was on Aug. 25, when the S&P 500 hit a bottom and rallied 6.5 percent over the next three days.

     The S&P 500 trades at 15.2 times the forecast earnings of its members, in line with the index’s average of the past four years. It’s more expensive than developed markets in Europe, where the Stoxx 600 Index trades for 14.1 times estimated earnings.

     The equity benchmark is down almost 12 percent from its record set last May, and has slumped 9.3 percent since the Federal Reserve raised interest rates last month for the first time since 2006. Meanwhile, a measure of volatility has jumped the most since a selloff in August which sent the S&P 500 into its first correction in four years.

     The Chicago Board Options Exchange Volatility Index fell 3.6 percent Tuesday to 26.05. The measure of market turbulence known as the VIX is up 43 percent this month.                      

     “I don’t think we’ve resolved all the issues in the market,” said Nick Sargen, who helps manage $46.2 billion as chief economist and senior investment adviser for Fort Washington Investment Advisors Inc. “The questions left are how much is China’s economy in fact slowing down, and when will we see a floor for the price of oil.”

     While investors fret over the impact China’s slowdown will have on global growth, the International Monetary Fund cut its world growth outlook as the commodities slump and political gridlock push Brazil deeper into recession, plunging oil prices hobble Mideast crude producers and the rising dollar curbs U.S.  prospects.

     The fund also said risks to the global outlook remain tilted to the downside, with the world facing three big adjustments: the emerging-market slowdown, China’s shift to growth driven less by exports and manufacturing and the Fed’s gradual exit from ultra-low interest rates.

     U.S. data today showed confidence among homebuilders was unchanged at the start of year, indicating the residential real estate market was sustaining the steady progress made in 2015.                       

     Corporate earnings are gathering more attention with investors weighing the health of the U.S. economy. Analysts project profits for index members fell 7 percent in the fourth quarter. Netflix advanced 7.3 percent as of 4:42 p.m. after it added 5.6 million online subscribers in the fourth quarter, beating analysts’ expectations as international growth made up for slower domestic gains.

     Five of the 10 main groups in the S&P 500 fell, with energy losing 2.2 percent and raw-materials down 1.2 percent. Utilities, phone companies and consumer staples increased at least 1.1 percent.

     Energy companies slid further into five-year lows, with Chesapeake Energy Corp. tumbling more than 13 percent, while Exxon Mobil Corp. lost 1.5 percent. Miner Freeport-McMoRan Inc. sank 9 percent to lead raw-materials lower, even as copper prices rose today. Alcoa Inc. dropped 2.3 percent to its lowest in almost seven years.

     Viacom Inc. and Macy’s Inc. helped power gains in consumer discretionary shares after the group fell for a sixth week out of seven. Macy’s rose 2.3 percent after David Einhorn’s Greenlight Capital LLC reported a new position in the retailer. Greenlight said in a letter that a private equity firm and a real estate investment trust could team up to purchase the company and “unlock the value” of its land and buildings.

     Meanwhile, Viacom advanced 4.7 percent after the media giant was said to be targeted by an activist investor. SpringOwl Asset Management called on Chairman Sumner Redstone and Chief Executive Officer Philippe Dauman to step down from the New York-based media company.

     The second-biggest U.S. lender, Bank of America said profit rose 9.4 percent thanks to fixed-income trading revenue. Still, shares erased early gains to fall as much as 3.1 percent after Chief Financial Officer Paul Donofrio said on a call with analysts that revenue growth will be “challenging,” even as the U.S. economy improves.

     Banks in the S&P 500 fell 0.9 percent, led by Comerica Inc.’s 3.7 percent decline, even after it reported better-than- estimated fourth-quarter profits. KeyCorp dropped 1.6 percent and Citigroup Inc. lost 1.3 percent to bring its 2016 slump to 19 percent.

     Morgan Stanley added 1.1 percent after briefly erasing an earlier 4.5 percent surge. Its earnings were better-than- estimated and the company plans to cut at least $1 billion in costs by next year.
 

Have a wonderful evening everyone.

 

Be magnificent!

The important question for me is,

is the body a source for creating, for realizing yourself,

for realizing what life is all about?  You ask this question

and you go where it takes you and then you ask another question

and then again you follow.  So this understanding of the body, of the unity within the body

and the innumerable areas which it reveals to you is what I call realization.

Chandralekha

As ever,

 

Carolann

 

The most important thing is to stay positive.

                               -Saku Koivu, 1974-

 

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:

Interesting…

Microbes found in the stomach of a prehistoric hunter dubbed “Otzi” are giving scientists new clues about the migration patterns of humans thousands of years ago. By 

ROBERT LEE HOTZ

Microbes that once troubled the stomach of a prehistoric hunter known as “Otzi the Iceman,” who died on an Alpine glacier 5,300 years ago, are offering researchers a rare insight into the early settlement of Europe.

In findings reported Thursday in Science, an international research group analyzed remnants of ulcer-causing microbes called Helicobacter pylori exhumed from the well-preserved mummy of the Neolithic nomad. With modern DNA sequencing technology, they reconstructed the genetic structure of this ancient microbe—the oldest known pathogen sequenced so far.

By comparing the specimen to modern variants, they discovered that this early European wanderer was infected with a strain that survives today only in India and South Asia, and not those more prevalent in modern Europe. The finding suggests that multiple waves of migrants settled the region, introducing new strains of the bacteria as they intermingled, they said.

 “This one genome has put things into wonderful perspective for us,” said evolutionary biologist Yoshan Moodley of the University of Venda in South Africa, who helped analyze the bacteria’s genome. “It is mind-boggling, really.”

Otzi the Iceman, as he is popularly known, is one of the most well-studied corpses in the history of forensic medicine.

Since two German hikers stumbled over his mummy in 1991, researchers have probed, prodded, biopsied, X-rayed, and CAT-scanned the remains. They have noted his healed bone fractures, diagnosed hints of Lyme disease, examined the food stuck between his teeth, and mulled the meaning of his 61 tattoos. They analyzed his own genetic inheritance, including the DNA of the energy-producing mitochondria that powered his cells.

“We know he had a rough lifestyle,” said Frank Maixner at the European Academy Institute for Mummies and the Iceman in Bolzano, Italy, who led the team of 23 scientists. “We found a lot of pathological conditions.”

 Mountaineers with Otzi where he was found in the Alps in 1991. PHOTO: GAMMA-RAPHO/GETTY IMAGES

In the new study, they defrosted the mummy and rummaged through the contents of his stomach. There, they recovered evidence of a microbe that has infected humankind for so many thousands of years that distinctive strains evolved as anatomically modern humans migrated out of Africa in successive waves starting about 60,000 years ago. It serves as a biomarker for the global travels of humankind.

“The Iceman’s strain must have been the original population that inhabited the stomachs of Europeans 5,000 years ago,” Dr. Moodley said.

That ancestral strain apparently mixed with variants thought to have originated more recently in North Africa, to create the variant common in Europe today. All told, strains of Helicobacter pylori infect about half the world’s population.

The researchers also determined that the bacteria had inflamed his stomach lining, indicating that the prehistoric hunter, fleeing into the icy highlands where he was shot in the back with an arrow and beaten, may have been feeling ill on the day he was murdered.

The oldest previous pathogen to have had its genome sequenced involved samples of microbes that caused outbreaks of plague during the heyday of the Roman Empire about 1,500 years ago. That DNA was from ancient samples of the pathogen Yersinia pestis, which caused two of the world’s most devastating plagues, the Black Death and Plague of Justinian—each responsible for killing as many as half the people then in Europe.

A reconstruction of what Otzi the Iceman may have looked like. PHOTO: EURAC/MARION LAFOGLER

PHOTOS OF THE DAY
The sun reflects in the water of Brouwersgracht canal seen through the mechanism of a draw bridge, in Amsterdam, Netherlands, Monday.Peter Dejong/AP

An environmental activist wears a mask made from tree bark as he takes part in march in defense of Europe’s last ancient forest, the Bialowieza Primeval Forest, in Warsaw, Poland, Sunday. Kacper Pempel/Reuters

Market Closes for January 18^th, 2016

Market Index	Close	Change
Dow Jones	15988.08	Closed
S&P 500	1880.29	Closed
NASDAQ	4488.418	Closed
TSX	11942.17	-131.29
		-1.09%

International Markets

Market Index	Close	Change
NIKKEI	16955.57	-191.54
		-1.12%
HANG SENG	19237.45	-283.32
		-1.45%
SENSEX	24188.37	-266.67
		-1.09%
FTSE 100	5779.92	-24.18
		-0.42%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.163	1.148
CND. 30 Year Bond	1.984	1.980
U.S.    10 Year Bond	2.0347	2.0347
U.S. 30 Year Bond	2.8140	2.8133

Currencies

BOC Close	Today	Previous
Canadian $	0.68747	0.68796
US $	1.45461	1.45358
Euro Rate 1 Euro=		Inverse
Canadian $	1.58390	0.63135
US $	1.08905	0.91823

Commodities

Gold	Close	Previous
London Gold Fix	1089.20	1093.75
Oil	Close	Previous
WTI Crude Future	29.42	31.20

Market Commentary:

Canada

By Gerrit De Vynck

     (Bloomberg) — Canadian stocks fell, as declining oil prices dragged down the country’s energy companies.

     The Standard & Poor’s/TSX Composite Index dropped 1.1 percent to 11,942.17 as U.S. benchmark oil fell to $28.94 in electronic trading as Iran began efforts to boost production after international sanctions were lifted, heralding more supply for a global economy already awash in oil.

     Kelt Exploration Ltd. and Penn West Petroleum Ltd. led decliners among energy producers, both falling more than 6.5 percent. Canadian Oil Sands surged 11 percent to C$8.27 after agreeing to a sweetened takeover offer from Suncor Energy Inc, which clinched the deal after it raised its all-stock offer by 12 percent to C$4.2 billion. Suncor fell 4.6 percent to C$29.77.

     The session followed one of the worst weeks for Canadian stocks in history, as commodity prices tumbled amid speculation China’s economic growth will slow, crimping global demand.

     Monday’s volume on the S&P/TSX was 61 percent lower than average as U.S. markets were closed for the Martin Luther King Jr. holiday. European stocks fell for a third day while the Shanghai Composite Index gained 0.4 percent, led by small cap stocks.

US

US markets were closed for Martin Luther King Day

 

Have a wonderful evening everyone.

 

Be magnificent!

Self is not something as opposed to something else,

it is sunya: we are also all things;

the self represented in all forms, good or bad,

not exclusively or exhaustively in any.

Ramchandra Gandhi

 

As ever,

 

Carolann

 

The time is always right to do what is right.

          -Martin Luther King, Jr., 1929-1968

 

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