Month: April 2016

Dear Friends,

Tangents:

TODAY IN HISTORY

The crew of the British ship Bounty mutineed, setting Captain William Bligh and 18 sailors adrift in a launch in the South Pacific.

Captain Bligh describes the mutiny on the Bounty, 1789, in his Journal, quoted by John Barrow, Second Secretary of the Admiralty:

Just before sun rising…while I was yet asleep, Mr. Christian, officer of the watch, Charles Churchill, ship’s corporal, John Mills, gunner’s mate, and Thomas Burkitt, seaman, came into my cabin, and seizing me, tied my hands with a cord behind my back, threatening me with instant death if I spoke or made the least noise.  I called, however, as loud as I could in hopes of assistance; but they had already secured the officers who were not of their party, by placing sentinels at their doors.  There were three men at my cabin door, besides the four within…The officers and men being in the boat, they only waited for me, of which the master-at-arms informed Christian; who then said – “Come, Captain Bligh, your officers and men are now in the boat, and you must go with them;  if you attempt to make the least resistance, you will instantly be put to death”; and without further ceremony, with a tribe of armed ruffians about me, I was forced over the side, when they untied my hands.  Being in the boat, we were veered astern by a rope, a few pieces of pork were thrown to us, and some clothes, also the cutlasses I have already mentioned; and it was then that the armourer and carpenters called out to me to remember that they had no hand in the transaction.  After having undergone a great deal of ridicule, and been kept for some time to make sport for these unfeeling wretches, we were at length cast adrift in the open ocean.

PHOTOS OF THE DAY

A 23-day-old hamadryas baboon plays with a stuffed toy at Sri Chamarajendra Zoological Gardens in the southern Indian city of Mysuru on Thursday. According to a zoo doctor, the baboon was abandoned by its mother after its birth. Abhishek N. Chinnappa/Reuters

A woman looks at a dummy displayed in front of a fashion shop in Nice, southeastern France, Thursday. Lionel Cironneau/AP

Market Closes for April 28^th, 2016

Market Index	Close	Change
Dow Jones	17830.76	-210.79   -1.17%
S&P 500	2073.01	-22.14   -1.06%
NASDAQ	4805.289	-57.852   -1.19%
TSX	13882.79	-4.87
		-0.04%

International Markets

Market Index	Close	Change
NIKKEI	16666.05	-624.44
		-3.61%
HANG SENG	21388.03	+26.43
		+0.12%
SENSEX	25603.10	-461.02
		-1.77%
FTSE 100	6322.40	+2.49
		+0.04%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.479	1.499
CND. 30 Year Bond	2.057	2.059
U.S.    10 Year Bond	1.8260	1.8472
U.S. 30 Year Bond	2.6843	2.7023

Currencies

BOC Close	Today	Previous
Canadian $	0.79661	0.79
US $	1.25533	1.2590
Euro Rate 1 Euro=		Inverse
Canadian $	1.42535	0.70158
US $	1.13544	0.88066

Commodities

Gold	Close	Previous
London Gold Fix	1256.00	1247.40
Oil	Close	Previous
WTI Crude Future	46.03	45.33

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks closed little changed as gold producers rallied, offset by disappointing earnings from Potash Corp. of Saskatchewan Inc. and Constellation Software Inc.

     The benchmark Standard & Poor’s/TSX Composite Index fell less than 0.1 percent to 13,886.43 at 4 p.m. in Toronto, erasing a gain of as much as 0.6 percent in the final hour of trading. The gauge halted the longest losing streak in three weeks on Tuesday, and is one of the best-performing developed market in the world this year as it rebounds from last year’s worst annual decline since 2008.

     Barrick Gold Corp. and Goldcorp Inc. rallied at least 4.6 percent as gold producers surged to a more than two-year high. Gold prices got a surprise lift after the Bank of Japan opted against boosting stimulus, weakening the dollar. Gold for June delivery climbed 1.3 percent to settle at $1,266.40 an ounce in New York.

     Raw-materials producers jumped 2.2 percent, the most in the Canadian benchmark equity gauge as four of 10 industries in the S&P/TSX advanced. Constellation Software sank 5.1 percent to a two-month low after posting first-quarter adjusted earnings of $2.95 a share, short of consensus estimates of $4.45. Technology stocks slid 1.7 percent as a group, the steepest drop since March 4.

     Bombardier added 1.5 percent, extending a July high, after landing a $5.6 billion deal based on list prices to sell at least 75 of its C Series jets to Delta Air Lines Inc. with an option to buy 50 more. Bombardier also reported a wider-than- estimated quarterly loss, while revenue was short of analysts’ forecasts.

     Potash Corp. slipped 3.6 percent to a five-week low after cutting its full-year profit forecast as fertilizer prices declined and China delayed signing key supply contracts. The forecast for potash production at the world’s second-largest producer of the fertilizer was also reduced. First quarter sales and profit also slumped.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, with a 17 percent rally in the benchmark equity gauge from a Jan. 20 low aligning with a rebound in crude from the lowest levels since 2003. Raw- materials and energy producers are the two top-performing industries in Canada so far this year, up more than 14 percent.

     The Canadian benchmark now trades at 21.9 times earnings, about 15 percent higher than the 19.1 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

US

By Anna-Louise Jackson and Joseph Ciolli

     (Bloomberg) — U.S. stocks fell, with the Standard & Poor’s 500 Index capping the biggest drop in three weeks, as Apple Inc. led an afternoon selloff in technology shares, overshadowing corporate deals and strong results from Facebook Inc.

     Sentiment was fragile heading into today’s session after the Bank of Japan refrained from adding more stimulus measures, and turned sour after Carl Icahn said he sold out of his stake in Apple Inc. That sent the iPhone maker’s shares to a two-month low with tech companies tumbling along with it, despite Facebook surging to a record. After the market closed, Amazon.com Inc. rallied on better-than-estimated results.

     The S&P 500 Index fell 0.9 percent to 2,075.81 at 4 p.m. in New York, the most since April 7. The gauge is still up 0.8 percent for the month. The Dow Jones Industrial Average slid 210.79 points, or 1.2 percent, to 17,830.76, the biggest decline in more than two months. The Nasdaq Composite Index lost 1.2 percent to a one-month low, extending its longest retreat since January. About 8.1 billion shares traded hands on U.S. exchanges, 3 percent above the three-month average.

     “When the news on Icahn’s Apple sale came out, that really got people worried,” said Matt Maley, an equity strategist at Miller Tabak & Co. LLC in New York. “It’s hard for the stock market to rally to new highs when Apple isn’t moving higher. Facebook seemed to offset the BOJ news, but as Apple moved to new lows, it got people more concerned. It overtook the positive news in the market.”

     Equities had overcome an opening slide, with the S&P 500 erasing losses within the first hour of trading as Facebook helped carry tech shares higher. A $25 billion buyout of St. Jude Medical Inc. by Abbott Laboratories, and Comcast Corp.’s $3.8 billion deal to acquire DreamWorks Animation SKG Inc. also buoyed sentiment. The two companies soared more than 24 percent. Tech’s advance withered, however, amid weak earnings news that has dogged the group, and declines accelerated as Apple slumped.

     The S&P 500 had rebounded as much as 15 percent from a 22- month low in February, taking its valuation to nearly 18 times estimated profits, near last year’s high. The benchmark has labored for six sessions to press beyond a four-month peak reached on April 20 amid mixed quarterly results from corporate America.

     “I’ve certainly been surprised by the ability of the market to hang in there with as many mediocre earnings as we’ve seen so far and I think it was too many,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee. “It shows people are looking to sell rallies. Late day price action like this is really, really bad for short-term sentiment.”

     Among shares moving on earnings news Thursday, GNC Holdings Inc. plunged 29 percent the most in five years as a public company after earnings missed estimates. Cardinal Health Inc. saw its worst drop since 2009 after narrowing its full-year profit outlook below analysts’ predictions. That weighed on competing drug distributor McKesson Corp., which dropped 4.8 percent, the most in three months.

     Cliffs Natural Resources Inc. jumped 25 percent, its best one-day gain in more than seven years after its revenue beat estimates and the miner lifted its spending outlook. Pilgrim’s Pride Corp. surged the most since 2013 after earnings exceeded predictions and the chicken producer declared a special dividend.

     Amazon jumped 12 percent as of 4:33 p.m. after its sales and earnings topped estimates, adding to evidence that the company can make money even while investing heavily in endeavors like one-hour delivery and marketing new gadgets like the Echo voice-activated home assistant. 

     Stocks climbed for a second day on Wednesday after the Federal Reserve reassured investors by signaling interest-rate increases will be gradual. The Fed kept its benchmark rate unchanged, saying it will monitor economic developments amid slow but steady growth. Traders are now pricing in a nearly 60 percent chance of higher borrowing costs in December, the first month with better than even odds for a boost.

     Monetary policy during the past seven years has been a strong support to a bull market that is now the second-longest ever at 2,607 days, matching a rally from 1949 to 1956. Only the dot-com bubble of the 1990s lasted longer at 3,452 days. Stocks are currently stuck in their longest period of stasis since the rally began, going 11 months without posting a 52-week high.

     That may be due in part to an earnings season predicted to be the worst since the financial crisis, with analysts expecting a 9.2 percent decline in first-quarter profit for firms in the S&P 500. Of those that have released results so far, 78 percent beat profit projections and 59 percent topped sales estimates.

     As policy makers and investors weigh data to discern the path for rates, a report today showed the economy expanded in the first quarter at the slowest pace in two years. A measure of inflation tied to personal spending and excluding volatile food and fuel costs climbed 2.1 percent, the most in four years and in line with policy makers’ target.

     In Thursday’s trading, nine of the S&P 500’s 10 main industries fell, with technology, energy, consumer discretionary and financial shares losing more than 1.1 percent. The tech group marked a sixth straight drop, the lengthiest since Jan. 8, with Apple posting its longest losing streak in more than three years.

     The Chicago Board Options Exchange Volatility Index jumped 10 percent to 15.14 to a two-week high. The measure of market turbulence known as the VIX erased losses for April, putting it on track for the fifth monthly gain in the last six.

     Technology shares erased a morning gain of 0.6 percent, with the group continuing to struggle amid earnings news that was less impressive than Facebook’s. Xilinx Inc. fell 8.7 percent after its fiscal 2017 profit forecast trailed estimates. Symantec Corp. sank 6.7 percent as the world’s biggest maker of cyber-security software cut its earnings and sales forecasts for the fiscal fourth quarter and said Chief Executive Officer Michael Brown will step down.

     International Business Machines Corp. lost 2.3 percent. The tech giant’s debt ratings outlook was revised to “negative” by S&P after the company posted its 16th consecutive quarter of declining revenue and reduced its forecast for second-quarter profits. Microsoft Corp. and Alphabet Inc. sank at least 2 percent, with both reaching two-month lows.

     Energy producers fell from a five-month high, even as crude oil increased for a third session, up 1.5 percent. Marathon Oil Corp. and Apache Corp. slid more than 3.3 percent, while Southwestern Energy Co. dropped 6.4 percent after a two-day gain of 13 percent.

     Other shares moving on corporate news included Hanesbrands Inc., which rallied 6.3 percent to an eight-week high after agreeing to acquire Australia’s Pacific Brands Ltd. that values the company at about $800 million. FirstEnergy Corp. tumbled 9.9 percent, the steepest since 2008, after regulators agreed to review its power contracts with American Electric Power Co. in Ohio.
 

Have a wonderful evening everyone.

 

Be magnificent!

To make a decision is an illusion.

Behind the decision

is the hidden belief

that everyone is the same.

Swami Prajnanpad

 

As ever,

 

Carolann

 

Oh wonder!

How many goodly creature are there here!

How beauteous mankind is!  Oh, brave new world,

That has such people in’t!

       -William Shakespeare, 1564-1616, The Tempest

 

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 SPARROWS

Catching winter in their carved nostrils
the traitor birds have deserted us,
leaving only the dullest brown sparrows
for spring negotiations.

I told you we were fools
to have them in our games,
but you replied:
     They are only wind-up birds
who strut on scarlet feet
so hopelessly far
from our curled fingers.

I had moved to warn you,
but you only adjusted your hair
and ventured:
     Their wings are made of glass and gold
and we are fortunate
not to hear them splintering
against the sun.

Now the hollow nests
sit like tumours or petrified blossoms
between the wire branches
and you, an innocent scientist,
question me on these brown sparrows:
whether we should plant our yards with breadcrumbs
or mark them with the black , persistent crows
whom we hate and stone.

But what shall I tell you of migrations
when in this empty sky
the precise ghosts of departed summer birds
still trace old signs;
or of desperate flights
when the dimmest flutter of a coloured wing
excites all our favourite streets
to delight in imaginary spring.

               -Leonard Cohen, Let Us Compare Mythologies.

PHOTOS OF THE DAY

A cloud of insecticide is seen over Havana at dawn Wednesday after fumigation against the Aedes aegypti mosquito in the fight against the Zika virus. Enrique de la Osa/Reuters

Greek rowing World Champion Katerina Nicolaidou lights a cauldron with the Olympic Flame during the handover ceremony of the flame to the delegation of the 2016 Rio Olympics at Panathenaic Stadium in Athens on Wednesday. Alkis Konstantinidis/Reuters

Market Closes for April 27^th, 2016

Market Index	Close	Change
Dow Jones	18041.55	+51.23    +0.28%
S&P 500	2095.15	+3.45    +0.16%
NASDAQ	4863.14	-25.143   -0.51%
TSX	13887.66	+78.22
		+0.57%

International Markets

Market Index	Close	Change
NIKKEI	16666.05	-624..44
		-3.61%
HANG SENG	21388.03	+263.43
		+0.12%
SENSEX	25603.10	-461.02
		-1.77%
FTSE 100	6319.91	+35.39
		+0.56%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.499	1.551
CND. 30 Year Bond	2.059	2.094
U.S.    10 Year Bond	1.8472	1.9307
U.S. 30 Year Bond	2.7023	2.7531

Currencies

BOC Close	Today	Previous
Canadian $	0.79	0.79315
US $	1.2590	1.2608
Euro Rate 1 Euro=		Inverse
Canadian $	1.42	0.70
US $	1.1311	0.88

Commodities

Gold	Close	Previous
London Gold Fix	1247.40	1241.70
Oil	Close	Previous
WTI Crude Future	45.33	44.04

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks climbed a second day, as energy and raw-materials producers advanced after oil closed at its highest level since November.

     The benchmark Standard & Poor’s/TSX Composite Index rose 0.6 percent to 13,887.66 at 4 p.m. in Toronto. The gauge halted the longest losing streak in three weeks on Tuesday, and is neck-and-neck with New Zealand as the best-performing developed market in the world this year, with a 6.8 percent gain.

     Six of the S&P/TSX’s 10 industries advanced, with utilities and raw-materials rising at least 1.3 percent. Bond yields tumbled after Federal Reserve policymakers signaled they will retain a “gradual” approach to raising interest rates even amid signs of improvement in the world’s largest economy.

     Energy producers climbed 1 percent, after rallying as much as 1.8 percent. West Texas Intermediate crude futures rose 2.9 percent, settling at $45.33 a barrel in New York. The commodity briefly erased gains after data showed crude inventories rose 2 million barrels last week, ahead of a 1.75 million barrel advance projected by analysts surveyed by Bloomberg.

     Cenovus Energy Inc. added 1.6 percent after reporting lower production and operating costs in the first quarter from year- ago levels, offsetting a wider operating loss than analysts expected. The oil and gas producer said the quarterly results are not indicative of potential performance for the rest of the year.

     Potash Corp. of Saskatchewan Inc. added 1.9 percent before its earnings report on Thursday, while Goldcorp Inc. gained 1.8 percent as gold prices climbed for a third day.

     Companies including BP Plc, Nabors Industries Ltd. and explorer Pioneer Natural Resources Co. have all said in the past 24 hours that prices above $50 will help drive a recovery in the oil industry, while The World Bank boosted its forecast for oil prices this year to an average of $41 a barrel, up from a January forecast of $37.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, with a 17 percent rally in the benchmark equity gauge from a Jan. 20 low aligning with a rebound in crude from the lowest levels since 2003. Raw- materials and energy producers are the two top-performing industries in Canada so far this year, up more than 15 percent.

     The Canadian benchmark now trades at 22.2 times earnings, about 15 percent higher than the 19.3 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

US

By Anna-Louise Jackson and Oliver Renick

     (Bloomberg) — U.S. stocks advanced after the Federal Reserve reassured investors by continuing to signal it will proceed gradually in raising interest rates amid slow but steady growth in the economy.

     The Standard & Poor’s 500 Index climbed for a second day as energy producers rallied after oil surged above $45 a barrel in a whipsaw session. Those gains helped to offset losses among technology companies after Apple Inc. tumbled the most since January as its results disappointed. The Nasdaq 100 Index fell 0.8 percent to the lowest in nearly a month. Facebook Inc. jumped after the market closed as its results beat estimates.

     The S&P 500rose 0.2 percent to 2,095.15 at 4 p.m. in New York, after erasing a decline of as much as 0.5 percent. The Dow Jones Industrial Average added 51.23 points, or 0.3 percent, to 18,041.55, even with a roughly 45-point negative drag from Apple. About 7.3 billion shares traded hands on U.S. exchanges, 8 percent below the three-month average.

     In its statement, the Federal Open Market Committee today omitted previous language that “global economic and financial developments continue to pose risks,” tacitly nodding to improvement in financial markets, and instead said officials will “closely monitor” such developments. The Fed left its benchmark interest rate unchanged. The committee reiterated that it will probably raise rates at a “gradual” pace.

     “They’ve reassured the market it’s going to be a slow and gradual pace and that they expect the economy to improve moderately,” said Michael Arone, the Boston-based chief investment strategist at State Street Global Advisors’ U.S. intermediary business. “It was about as expected and they made their comments as wide in scope as possible and as a result there’s not much you can grasp onto to say they’re going to change their path.”

     The S&P 500 is up 3.4 percent since the Fed’s last meeting, when policy makers balked at lifting rates and signaled a slower pace for increases, citing risks from “global economic and financial developments” that could weigh on U.S. growth. Fed Chair Janet Yellen reiterated last month that the central bank will proceed cautiously.

     “Looks as if we will continue with the ‘slower growth, lower rates for longer’ scenario,” said Chris Gaffney, president of EverBank World Markets in St. Louis. “Nothing here would indicate a June hike is any more likely than before the statement. Markets are still predicting a ‘hold’ in interest rates until the end of 2016.”

     The recent equity rally had lost momentum following a four- month peak on April 20, as a batch of muted earnings reports failed to provide fresh impetus to send the S&P 500 higher. The benchmark index has rebounded 14 percent since a 22-month low in February, helped by surging oil prices and optimism the Fed will remain supportive of growth. It briefly climbed within 1 percent of its May record last week, before receding.

     Gains of at least 3 percent today in EBay Inc., Boston Scientific Corp. and Mondelez International Inc. after better- than-forecast results helped boost equities. Meanwhile, Apple’s first sales drop in more than a decade sent the broader tech group to the lowest level in six weeks. Microsoft Corp. and Alphabet Inc. sank for the third time in four sessions, with each posting losses of at least 7.5 percent during the period.

     Boeing Co. gained 2.9 percent to help boost the Dow, even as its quarterly profit was short of analysts’ forecasts as a charge for cost overruns on refueling tankers overshadowed improvements in cash flow and the company’s 787 Dreamliner production. United Technologies Corp. advanced 1 percent after its profit beat estimates as the company reined in costs to overcome sluggishness in China.

     Earnings remain squarely in focus, with more than a third of S&P 500 companies reporting this week, including Amazon.com Inc., Ford Motor Co. and Altria Group Inc. Analysts are projecting a 9.2 percent decline in first-quarter profit for firms in the benchmark, the worst performance since the financial crisis. Of those that have released results, 81 percent beat profit projections, while 58 percent topped sales forecasts.                       

     Facebook climbed 8.5 percent as of 4:36 p.m. after reporting sales and profit that beat analysts’ estimates on a boom in mobile advertising, boosted by newer ads on Instagram and video.

     In Wednesday’s trading, nine of the S&P 500’s 10 main industries advanced, while technology shares lost 0.9 percent, cutting the day’s losses by more than half. Energy, utility and phone companies — the benchmark’s strongest performers this year — increased at least 1.4 percent.

     Verizon Communications Inc. gained 2.5 percent, the most in three months, as the company and two labor unions representing 39,000 striking workers plan to resume negotiations on Thursday. Utility companies advanced for a fourth day, the longest streak since March 17.

     The Chicago Board Options Exchange Volatility Index fell 1.4 percent to 13.77, erasing a 7 percent climb. The measure of market turbulence known as the VIX also wiped out a monthly increase.

     Energy stocks rose for a second day to levels last seen in November, even as a report showed U.S. crude stockpiles climbed to the highest since 1929. FMC Technologies Inc. jumped 6.5 percent to a four-month peak even after reporting quarterly results that missed estimates. Hess Corp. slumped 3.1 percent its earnings report.

     Among company’s moving on earnings news, Boston Scientific jumped to a nearly 10-year high after the maker of heart rhythm devices raised its 2016 profit forecast as four of its seven businesses posted double-digit sales growth in the first quarter. Similarly, Assurant Inc. surged 7.6 percent, the biggest gain in six years, on better-than-expected results.

     Robert Half International Inc. tumbled 12 percent, the most in more than 15 years, after it missed earnings estimates and an analyst downgraded the stock. Goodyear Tire & Rubber Co. slipped 7.4 percent, the worst since July 2014, after disappointing sales results as losses in its Venezuelan unit overshadowed demand for its premium tires.

     H&R Block Inc. slumped 14 percent to a three-year low, after the company forecast lower revenue for the current fiscal year and said it plans cost cuts and management changes. The stock has lost 39 percent this year. Chipotle Mexican Grill Inc. dropped 6.4 percent, the steepest in three months, as its latest results showed the company has yet to turn the page on the food- safety crisis that has dogged it for half a year.

Have a wonderful evening everyone.

 

Be magnificent!

We do not progress from error to truth, but from truth to truth.

Thus we must see that none can be blamed for what they are doing, because they are,

at this time, doing the best they can.  We learn only from experience.

Swami Vivekananda

As ever,

 

Carolann

 

When you reach the top. That’s when the climb begins.

                                          -Michael Caine, b. 1933

 

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:

1937: Massacre, Guernica, Spain.

1986: The worst nuclear power plant accident in history occurs at the Chernobyl nuclear plant.

QUOTE OF THE DAY

“By 2020, we’ll be able to live without oil.”

Deputy Crown Prince Mohammed bin Salman on Saudi Arabia’s plans, unveiled yesterday, to free the kingdom from its dependence on oil revenues, in part by selling a stake in its state-owned oil company and creating the world’s largest sovereign-wealth fund. 

PHOTOS OF THE DAY

 

Syrian refugee Ibrahim Al-Hussein (c.), a freestyle swimmer, basketball player and former judo wrestler, receives the Olympic flame Tuesday from the head of Greece’s Olympic Committee, Spyros Capralos, at the Elaionas camp, home to about 1,500 refugees and other migrants, in Athens. The flame arrives in Brazil on May 3 and will be relayed across the vast country by about 12,000 torchbearers before the Aug. 5 opening ceremony in Rio de Janeiro’s Maracana Stadium. Thanassis Stavrakis/AP

Athletes present the official uniforms of Germany’s Olympic and Paralympic teams for the Rio 2016 Summer Olympic Games, in Duesseldorf, Germany, Tuesday. Wolfgang Rattay/Reuters

Market Closes for April 26^th, 2016

Market Index	Close	Change
Dow Jones	17990.32	+13.08   +0.07%
S&P 500	2091.70	+3.91   +0.19%
NASDAQ	4888.309	-7.477   -0.15%
TSX	13809.44	+13.45
		+0.10%

International Markets

Market Index	Close	Change
NIKKEI	17353.28	-86.02
		-0.49%
HANG SENG	21407.27	+102.83
		+0.48%
SENSEX	26007.30	+328.37
		+1.28%
FTSE 100	6284.52	+23.60
		+0.38%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.551	1.548
CND. 30 Year Bond	2.094	2.102
U.S.    10 Year Bond	1.9307	1.9092
U.S. 30 Year Bond	2.7531	2.7324

Currencies

BOC Close	Today	Previous
Canadian $	0.79315	0.78902
US $	1.26080	1.26740
Euro Rate 1 Euro=		Inverse
Canadian $	1.42445	0.70202
US $	1.12980	0.88511

Commodities

Gold	Close	Previous
London Gold Fix	1241.70	1238.90
Oil	Close	Previous
WTI Crude Future	44.04	42.68

Market Commentary:

Tweet of the Day

From Dec. 31, 1990 thru April 22, 2016, the S&P 500 posted a 9.9% CAGR, including dividends reinvested, and rose in 21 or 25 years.

— Sam Stovall @StovallSPGlobal

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for the first time in four days as energy producers advanced with crude oil.

     The benchmark Standard & Poor’s/TSX Composite Index rose 0.1 percent to 13,809.44 at 4 p.m. in Toronto, paring gains in the final hour of trading. The equity gauge managed to snap the longest losing streak in three weeks after fluctuating in morning trading. The gauge is one of the best-performing developed markets in the world this year with a 6.2 percent gain.

     Teck Resources Ltd. added 4.8 percent after reporting a surprise first-quarter adjusted profit to lead raw-materials producers higher as five of 10 industries increased. Industrial stocks sank 2.2 percent to offset some gains, led by a 1 percent decline in Canadian National Railway Co.

     Canadian National slid to the lowest since March 3 after the country’s largest railroad operator cut its full-year profit target for the first time in eight years amid weaker-than- expected demand for commodities including coal and crude. Adjusted earnings for 2016 will be in line with 2015’s C$4.44 a share, down from earlier forecasts of a mid to single-digit increase for the year, the Montreal-based company said in a statement Monday.

     Encana Corp. and Crescent Point Energy Corp. climbed at least 2.1 percent as energy stocks advanced 0.4 percent. Crude futures gained 3.3 percent in New York, trading above $44 a barrel to a five-month high amid signs that a global surplus is gradually diminishing, even as markets remain oversupplied.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, with a 17 percent rally in the benchmark equity gauge from a Jan. 20 low aligning with a rebound in crude from the lowest levels since 2003. Raw- materials and energy producers are the two top-performing industries in Canada so far this year, up more than 13 percent.

     The Canadian benchmark now trades at 22 times earnings, about 14 percent higher than the 19.2 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Bombardier Inc. rallied 8.9 percent, for the highest close since July, after the aircraft manufacturer signed a firm order with Chorus Aviation Inc. valued at $229 million for five aircraft with an option for five more.

     Husky Energy Inc. sank 9.2 percent, the most since October, after the energy company raised C$1.7 billion in relief for some of its Canadian pipelines from Li Ka-Shing, Hong Kong’s richest man, who controls the company. A couple of Li’s other units bought 65 percent of Husky’s midstream operations, which will continue to be run by Husky. The energy producer also posted a C$458 million loss in the first quarter, compared with a profit a year ago.

US

By Anna-Louise Jackson

     (Bloomberg) — The Standard & Poor’s 500 Index edged higher amid mixed corporate earnings results, while crude oil rallied to lift commodity producers and investors awaited tomorrow’s Federal Reserve policy update.

     Equities have had difficulty making further headway after reaching multi-month highs last week, holding in a tight range as the flow of financial results accelerates. Better-than- forecast profits at Procter & Gamble Co. and 3M Co. were greeted with ambivalence today as shares in the two companies retreated more than 1.3 percent. DuPont Co. added 2.4 percent after raising its 2016 earnings outlook. After markets closed, Apple Inc. sank and Twitter Inc. tumbled as their results disappointed.

     The S&P 500 rose 0.2 percent to 2,091.70 at 4 p.m. in New York, the fourth daily move of 0.2 percent or less since closing last Wednesday at the highest since Dec. 1. The Dow Jones Industrial Average added 13.08 points, or 0.1 percent, to 17,990.32. The Russell 2000 Index advanced 1.1 percent to the highest since Dec. 29 as crude boosted energy shares in the gauge. The Nasdaq Composite Index slipped 0.2 percent. About 6.5 billion shares traded hands on U.S. exchanges, 18 percent below the three-month average.

     “The S&P 500 is at what I consider to be a key resistance area in that 2,090 range, so it’s going to take some good news to push through that,” said Alan Gayle, a senior strategist at Atlanta-based RidgeWorth Investments, which has about $37 billion in assets. “The FOMC starts its deliberations now and so it would appear at this critical positioning in the market near resistance that traders may be just waiting on the sidelines until the FOMC is done before making any real bets.”

     A two-month rally has sputtered as a mix of uninspiring corporate results have given investors little incentive to push the S&P 500 higher after it reached a four-month peak. The U.S. benchmark index has rebounded 14 percent since a 22-month low in February, helped by a rise in oil prices and optimism the Fed will remain supportive of growth. The gauge last week briefly climbed within 1 percent of a record set in May.

     As the earnings season picks up pace, analysts are projecting a 9.2 percent decline in first-quarter profit for S&P 500 companies, compared with forecasts for flat growth at the start of the year. More than a third of the companies in the main U.S. equity index report this week. Of those that have released results so far, 80 percent beat profit projections, while 59 percent topped sales forecasts.

     Apple fell 6 percent as of 4:46 p.m. after it posted its first quarterly revenue drop in more than a decade and forecast another decline in the current period, dragged down by waning demand for the iPhone. The company boosted its dividend and stock-buyback program. Twitter tumbled 11 percent after forecasting current-quarter revenue that will fall short of analysts’ estimates, signaling the struggle to add users have dented advertising sales for the social network.

     Among the companies that reported today, Corning Inc. and Whirlpool Corp. sank more than 3.5 percent after their results missed estimates. Ryder System Inc. and truck maker Paccar Inc. gained at least 5.1 percent after exceeding forecasts. Coach Inc. climbed 4.2 percent, the best day since January after topping profit expectations amid signs its turnaround is progressing.

     With policy makers and investors assessing data to judge the strength of the economy, a report today showed orders for U.S. durable goods climbed less than forecast in March as demand for capital equipment remained weak. A separate reading on home prices in 20 U.S. cities rose less than forecast in February from a year earlier. Another gauge showed consumer confidence decreased more than forecast in April.

     While traders are pricing in zero chance of the Fed increasing interest rates tomorrow, investors will be looking for any clues on potential shifts in the trajectory of borrowing costs. September is now the first month with at least even odds for a rate boost.

     “We are looking for some direction in terms of, is this the low for earnings this year, and can we expect an improvement going into year end,” said Daniel Murray, the London-based head of research at EFG Asset Management, which oversees about $12 billion. “Clearly what the Fed says will be important from that perspective.”

     Six of the S&P 500’s 10 main industries advanced Tuesday, with energy and raw-materials shares rising more than 1.1 percent. Technology, health-care, consumer staples and phone companies lost at least 0.3 percent.

     Energy stocks rebounded 1.4 percent to erase a 1.1 percent slide on Monday. West Texas Intermediate crude rose 3.3 percent, above $44 a barrel amid signs that a global surplus is gradually diminishing. Pioneer Natural Resources Co. gained 7.7 percent, the most in two months after the company lifted its 2016 production growth target. ConocoPhillips increased 3.9 percent.

     DuPont’s advance, along with a 2.2 percent gain in merger partner Dow Chemical Co. boosted raw-materials shares back to a nine-month high. Alcoa Inc. jumped 4.9 percent, the most in five weeks, and Newmont Mining Corp. added 2.8 percent after RBC Capital Markets LLC upgraded the shares to the equivalent of buy.

     Hershey Co. and Procter & Gamble declined more than 1.9 percent to lead consumer staples shares lower following their results. Hershey missed quarterly sales estimates and cut its 2016 net sales view. P&G beat forecasts, though its cost cuts helped cushion the blow of tepid sales.

     Drug companies dragged on the health-care group for a second day. Eli Lilly & Co slipped 2.1 percent after its profit missed analysts estimates. The company raised its 2016 earnings forecast after a tax benefit. Biotechnology shares sank, led by Sarepta Therapeutics Inc. which plunged 26 percent after a regulatory panel failed to back the company’s experimental drug to treat a form of muscular dystrophy. The Nasdaq Biotech Index slid 1.5 percent.

     Corning’s biggest drop since July 2014 and a 7.7 percent slide in Flir Systems Inc. weighed on the tech group, which extended the longest losing streak in more than three months. Google parent Alphabet Inc. and Microsoft Corp. both erased yesterday’s bounces, declining at least 1.2 percent. Meanwhile, semiconductors rose, led by Micron Technology Inc.’s steepest climb since January amid optimism on pricing for dynamic random- access memory chips. Qorvo Inc. increased 2.8 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Do not destroy.  Iconoclastic reformers do no good to the world.

Help, if you can;  if you cannot, fold your hands, stand by and see things go on.

Therefore say not a word against any man’s convictions, so far as they are sincerer.

Secondly, take man where he stands, and from thence give him a lift.

Swami Vivekananda

As ever,

 

Carolann

 

I never lose sight of the fact that just being is fun.

                        -Katherine Hepburn, 1907-2003

 

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:

Poem: Selected by Matthew Zapruder

Bernadette Mayer is associated with the so-called New York School – poets whose work tends to explicitly explore the interactions between mundane daily life and the imagination.  Mayer’s poems are often informal and diaristic, and maintain a tensile balance between what Wallace Stevens called “the pressure of the real” and the possibility of an inner life.  Here the poet fails, tragically,, to create a space for herself free of our global worries. – NY Times, April 24, 2016.

Waiting for Dave, Megan and Issa

By Bernadette Mayer

Where am I
It’s supposed to be hot and sunny
But it’s cool and threatening
Threatening to be changeable
There’s a crisis in the banking system
Of Afghanistan, some people think the president
Of Syria is dead and in Japan old people will
Take over the work at the threatened nuclear power
Plants so the jeopardizing of their health
Will matter less, in years I guess, nobody
Has figured out what to do with nuclear waste
In Denmark it’s to be buried and so nobody
In future times will unearth it, the whole
Area will be covered with faux thorns
              Now it is overcast
There’s an ominous wind blowing
Wait, everything’s looking a little brighter
Oh no, it’s darkening.

Matthew Zapruder is the author of four poetry collections, includeing most recently “Sun Bear,”  He teaches poetry at Saint Mary’s College of California and is editor at large at Wave Books.  Bernadette Mayer is a poet whose most recent collection, “Works and Days,” will be published by New Directions in June.

PHOTOS OF THE DAY

Solar Impulse 2 flies over San Francisco, Saturday. The solar-powered airplane, which is attempting to circumnavigate the globe to promote clean energy and the spirit of innovation, arrived from Hawaii after a three-day journey across the Pacific Ocean. Noah Berger/AP

A member of the Gruppo Storico Romano (Roman Historical Group) dressed as a centurion performs at Circus Maximus as they mark the 2769th anniversary of the founding of Rome, Italy, Sunday. Alessandro Bianchi/Reuters

Market Closes for April 25^th, 2016

Market Index	Close	Change
Dow Jones	17977.24	-26.51   -0.15%
S&P 500	2085.08	-6.50   -0.31%
NASDAQ	4895.785	-10.443   -0.21%
TSX	13789.99	-84.01
		-0.61%

International Markets

Market Index	Close	Change
NIKKEI	17439.30	-133.19
		-0.76%
HANG SENG	21304.44	-162.60
		-0.76%
SENSEX	25678.93	-159.21
		-0.62%
FTSE 100	6260.92	-49.52
		-0.78%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.548	1.516
CND. 30 Year Bond	2.102	2.080
U.S.    10 Year Bond	1.9092	1.8860
U.S. 30 Year Bond	2.7324	2.7055

Currencies

BOC Close	Today	Previous
Canadian $	0.78902	0.78927
US $	1.26740	1.26700
Euro Rate 1 Euro=		Inverse
Canadian $	1.42844	0.70007
US $	1.12706	0.88726

Commodities

Gold	Close	Previous
London Gold Fix	1238.90	1243.25
Oil	Close	Previous
WTI Crude Future	41.24	42.68

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a third day, the longest slump in three weeks, as energy producers retreated after crude tumbled from a five-month high amid signs a global glut will persist.

     The benchmark Standard & Poor’s/TSX Composite Index lost 0.6 percent to 13,795.99 at 4 p.m. in Toronto, extending losses during a three-session slide to 0.8 percent. The gauge remains one of the best-performing developed markets in the world this year with a 6 percent gain. Trading volume was 15 percent lower than the 30-day average.

     Encana Corp. and Crescent Point Energy Corp. fell more than 3.1 percent as energy producers retreated 1.4 percent as a group, the most in the S&P/TSX. All but two of the group’s 50 members retreated. Eight of 10 industries in the benchmark Canadian equity gauge declined. Precision Drilling Corp. fell 5.5 percent, the most in a month, after reporting a first- quarter loss.

     Nevsun Resources Ltd. sank 9.8 percent, the most in three years, after agreeing Sunday to buy Reservoir Minerals Inc. in a $365 million cash and stock deal that secures ownership of the Timok copper project in Serbia. Nevsun CEO Cliff Davis said in an interview with Bloomberg he has no intention to sell the Timok project.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 17 percent recovery for the S&P/TSX from a low on Jan. 20, after tumbling into a bear market earlier in the month. Raw- materials and energy producers are the two top-performing industries in Canada so far this year, up more than 13 percent.

     The Canadian benchmark now trades at 22 times earnings, about 15 percent higher than the 19.1 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Oil declined 2.5 percent in New York from the highest close in five months. Saudi Arabian Oil Co. will complete an expansion at its Shaybah oil field by the end of May, allowing the world’s largest crude exporter to maintain total capacity at 12 million barrels a day, according to two people with knowledge of the plan. Iran has also increased output by 1 million barrels a day since sanctions were lifted in January, Shana reported.

     Valeant Pharmaceuticals International Inc. lost 1.6 percent, halting a five-day rally. Valeant named Perrigo Co.’s former Chief Executive Officer Joseph Papa as its new CEO and chairman, set to start in early May. He replaces Michael Pearson, who presided over a steep climb and faster fall as the drugmaker has come under scrutiny by lawmakers and regulators over its business practices.

     Bombardier Inc. rose 5.3 percent, to a September high, with the planemaker in negotiations about a deal with a prospective new airline serving the tourist island of Qeshm in southern Iran.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks slipped, with the Standard & Poor’s 500 Index continuing a retreat from a four-month high, before central-bank meetings this week in the U.S. and Japan and as investors awaited earnings reports to gauge corporate health.

     Equities trimmed losses in afternoon trading as consumer shares extended gains. Energy producers in the benchmark — which have led a two-month rally — sank with oil prices after closing Friday at the highest since Dec. 1. Banks declined after reaching a three-month high, and Caterpillar Inc., which was the strongest performer in the Dow Jones Industrial Average this year, dropped 2 percent.

     The S&P 500 fell 0.2 percent to 2,087.79 at 4 p.m. in New York, after losing as much as 0.7 percent. The Dow declined 26.51 points, or 0.2 percent, to 17,977.24, erasing most of an early 150-point drop. The Nasdaq 100 Stock Index was little changed after its steepest drop in two weeks Friday following disappointing results from Microsoft Corp. and Alphabet Inc. About 6 billion shares traded hands on U.S. exchanges, 24 percent below the three-month average.

     “The market is at an important juncture — this is the third time in the last 15 to 18 months that we’ve been near record levels in major indexes,” said Matt Maley, an equity strategist at Miller Tabak & Co. LLC. “Earnings are going to be the big focus this week. Nobody’s really looking for anything surprising out of the Fed. People will be closely watching the BOJ meeting on Thursday.”

     More than a third of the companies in the main U.S. equity index report results this week, including Apple Inc., Amazon.com Inc. and Boeing Co. Investors will also be on the lookout for shifts in rate guidance after the Federal Reserve’s policy decision Wednesday, while most economists predict monetary stimulus will be stepped up by the Bank of Japan.

     Equities have lost momentum in the last four sessions as corporate results failed to provide fresh impetus for investors to send the S&P 500 higher. The benchmark rallied as much as 15 percent from a 22-month low in February, boosted by a recovery in oil prices and signs of improvement in China. The gauge last week briefly climbed within 1 percent of a record set in May, before closing today 2 percent away from that level.

     Still, analysts have lowered first-quarter earnings estimates since the start of the year, when they forecast flat growth for S&P 500 companies. They now call for a profit decline of 9.2 percent. More than 130 companies have reported results so far, of which 81 percent beat earnings projections and 60 percent topped sales predictions.

     As policy makers assess data to inform their decisions on rates, a report today showed purchases of new homes unexpectedly declined in March for a third month, reflecting the weakest pace of demand in the West since July 2014. Traders are pricing in zero chance the Fed will raise rates at its meeting on Wednesday, with November now the first month with at least even odds for a boost.

     “We’re seeing a bit of an improvement in tone as the day goes along,” said Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion. “A good outlook is the most important part of any company announcement, and it’s what keeps the market moving higher. The likes of Apple and Amazon are set to announce, and their earnings will be very telling.”

     Six of the S&P 500’s 10 main industries declined Monday, with energy, raw-material and industrial companies falling more than 0.6 percent, paring declines after losing at least 1 percent. Financial firms sank 0.3 percent, cutting losses by more than half. Consumer staples shares rose for a second day, increasing 0.7 percent.

     The Chicago Board Options Exchange Volatility Index climbed 6.5 percent to 14.08. The measure of market turbulence known as the VIX erased an April decline, putting it on track for a fifth monthly advance in six after holding near the lowest since August last week.

     Energy companies in the S&P 500 decreased 1.1 percent, after falling as much as 1.8 percent. Cabot Oil & Gas Corp. and Transocean Ltd. losing at least 4.1 percent. The price of crude oil declined 2.5 percent. The resource has surged 65 percent since falling to an almost 13-year low on Feb. 11. The S&P 500 Energy Index has rallied almost 22 percent since then.

     The S&P 500 Financials Index slipped 0.3 percent as 15 of 17 companies in an index of bank stocks fell. Bank of America Corp. slid 1 percent, while Citigroup Inc. and JPMorgan Chase & Co. decreased 0.6 percent. In the broader financials group, asset managers Affiliated Managers Group Inc. and Legg Mason Inc. slumped at least 1.4 percent.

     Transportation companies paced declines among the industrials group in the benchmark. Union Pacific Corp. and Kansas City Southern lost at least 1.3 percent, falling from their highest levels since October. American Airlines Group Inc. and United Continental Holdings Inc. fell more than 2.7 percent. The Dow Jones Transportation Average lost 1.2 percent.

     Drug companies dragged down the health-care group as Perrigo Co. plunged 18 percent, the most in seven years, after cutting its earnings outlook. Chief Executive Officer Joseph Papa is also leaving to take the helm at Valeant Pharmaceuticals International Inc. Endo International Plc lost 12 percent, after a 29 percent surge last week. Mylan NV sank 6.8 percent. The Nasdaq Biotechnology Index retreated 0.9 percent, down for the first time in four sessions.

     Technology shares fell for a third day, equaling the longest losing streak since Feb. 9 amid Xerox Corp.’s largest drop since 2009. The stock tumbled 13 percent after earnings missed estimates and the company cut some full-year forecasts, underlining the challenges it faces ahead of a planned company split. Visa Inc. extended losses in a three-day decline to 3.7 percent. Apple sank for the sixth time in seven sessions, losing 6.3 percent during the span before its earnings report after markets close tomorrow.

     Grocer Kroger Co. added 3.3 percent, the strongest climb in two months, and meat producer Tyson Foods Inc. gained 1.6 percent to boost consumer staples stocks. The group is rebounding from the biggest back-to-back drop this year, sparked by an underwhelming quarterly report from Coca-Cola Co.

     Among shares moving on corporate news, Gannett Co., publisher of USA Today, added 6.5 percent after making an $815 million unsolicited bid for Tribune Publishing Co., seeking to add the Los Angeles Times and the Chicago Tribune to its newspaper portfolio. Tribune surged 53 percent, as Gannett offered a 63 percent premium to the company’s closing price on April 22.

     Time Warner Cable Inc. increased 4.1 percent, the most in 11 months, after its takeover by Charter Communications Inc. won antitrust approval. The deal would create the No. 2 U.S. cable provider, after agreeing to measures intended to protect distribution of online video. Consumer discretionary shares were little changed as Netflix Inc. retreated 2.4 percent to an almost two-month low.

 

Have a wonderful evening everyone.

 

Be magnificent!

We know now that toleration is not sufficient toward another religion; we must accept it.

Thus it is not a question of subtraction, it is a question of addition.

The truth is the result of all these different sides added together.

Each religion represents on side, the fullness being the addition of all these.

Swami Vivekananda

As ever,

 

Carolann

 

The best way to pay for a lovely moment is to enjoy it.

                                        -Richard Bach, b. 1936

 

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 Jewish holiday of Passover begins.

Earth Day is celebrated.  A global climate-change treaty is set to be signed at the U.N.

“Dearly beloved, we are gathered here today to get through this thing called life.”

                                                                                 -Prince, 1958-2016

PHOTOS OF THE DAY: NEPAL QUAKE ANNIVERSARY

Shanta Basnet pours water from the family tap outside their temporary shelter in Amppipal, Nepal. Reconstruction after the earthquake in April 2015 is slow as the government has stalled in distributing aid to both Kathmandu and the villages damaged near the epicenter. ANN HERMES/STAFF

Goma Basnet and her son Samir Jung Basnet watch their goats on the hillside in Amppipal. ANN HERMES/STAFF

View of construction is underway on damaged homes in the capital Kathmandul. ANN HERMES/STAFF

Market Closes for April 22^nd, 2016

Market Index	Close	Change
Dow Jones	18003.75	+21.23   +0.12%
S&P 500	2091.58	+0.10   —
NASDAQ	4906.227	-39.659   -0.80%
TSX	13873.98	-7.22
		-0.05%

International Markets

Market Index	Close	Change
NIKKEI	17572.49	+208.87
		+1.20%
HANG SENG	21467.04	-155.21
		-0.72%
SENSEX	25838.14	-42.24
		-0.16%
FTSE 100	6310.44	-71.00
		-1.11%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.516	1.457
CND. 30 Year Bond	2.080	2.052
U.S.    10 Year Bond	1.8860	1.8628
U.S. 30 Year Bond	2.7055	2.6850

Currencies

BOC Close	Today	Previous
Canadian $	0.78927	0.78523
US $	1.26700	1.27352
Euro Rate 1 Euro=		Inverse
Canadian $	1.42217	0.70315
US $	1.12247	0.89089

Commodities

Gold	Close	Previous
London Gold Fix	1243.25	1249.25
Oil	Close	Previous
WTI Crude Future	42.68	42.23

Market Commentary:

Canada

By Dani Burger

     (Bloomberg) — Canadian equities were little changed as lower metals prices weighed on commodity producers, offsetting gains in energy and in health-care companies as takeover speculation increased.

     The Standard & Poor’s/TSX Composite Index closed less than 0.1 percent lower at 13,873.98 at 4 p.m. in Toronto. The benchmark gauge capped its second straight weekly increase of at least 1.7 percent. The Canadian stock market remains the second best-performing developed market in the world this year, with the S&P/TSX up 6.6 percent.

     Investors also assessed mixed economic data. A report today showed Canada’s annual inflation rate slowed for a second month in March to 1.3 percent, led by cheaper gasoline and smaller mark-ups at auto dealers. In separate data, Canadian retail sales had a surprise gain in February, led by motor vehicle dealers.

     The resource-dominate S&P/TSX remains closely linked to moves in commodity prices, as a rebound in producers has fueled a 17 percent recovery since the Jan. 20 low. Oil futures added 1.3 percent in New York, bringing this week’s gain to 8.3 percent. The International Energy Agency reiterated on Thursday it expects non-OPEC output to decline by about 700,000 barrels a day this year, which would be the sharpest drop in a quarter century.

     Energy producers increased amid the group’s best five-day stretch in seven weeks. Cenovus Energy Inc. and Encana Corp. both rallied more than 3.6 percent on Friday. Health-care companies jumped 5.3 percent, the most out of 10 groups in the S&P/TSX. Concordia Healthcare Corp. rose 6 percent after reports that Blackstone Group LP is considering a takeover of the Toronto- based company.

     Among the biggest winners on Friday, Valeant Pharmaceuticals International Inc. advanced 7.3 percent for a fifth day of gains, the longest since July. The company is said to be in talks to hire Perrigo Co.’s chief executive officer to replace outgoing CEO Michael Pearson. Valeant said in March that Pearson would leave once a replacement was found, part of a broader overhaul that included adding activist investor Bill Ackman to its board.

     Material companies sank 1.8 percent, as gold in the spot market retreated 1.6 percent to $1,230 an ounce. Semafo Inc. declined 4.4 percent, while Barrick Gold Corp. slipped 1.4 percent. Miner HudBay Mineral Inc. rallied the most in the S&P/TSX today, up 6.7 percent as prices for copper and zinc advanced.

     Six of the ten groups in the S&P/TSX fell, with raw- materials posting the steepest declines, followed by technology and consumer staples companies.

US

By Joseph Ciolli

     (Bloomberg) — Disappointment with earnings pummeled shares of Microsoft Corp. and Google parent Alphabet Inc., sending the Nasdaq 100 Stock Index to the steepest drop in two weeks.

     While the tech-heavy Nasdaq slid, gains in crude oil boosted energy producers, curbing the Standard & Poor’s 500 Index’s decline. Technology shares in the benchmark index capped the biggest slide since Feb. 5, with Microsoft and Alphabet down at least 5 percent. Banks rebounded to a three-month high, and Norfolk Southern Corp. jumped the most since November as earnings beat estimates and the railroad increased its cost- cutting goal.

     The Nasdaq 100 dropped 1.5 percent to 4,474.19 at 4 p.m. in New York, paring a 2.2 percent retreat, with Microsoft falling the most in almost 15 months. The S&P 500 was little changed at 2,091.58, wiping out a 0.5 percent decline. The gauge gained 0.5 percent for the week. The Dow Jones Industrial Average added 21.23 points to 18,003.75, erasing a 72-point slide. The Russell 2000 Index climbed 1 percent as energy shares jumped 3 percent.

     “The big tech names that have reported in the last day are having a negative influence on major index returns,” said Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, which manages $54 billion. “Valuations in the U.S. equity market are full, so market participants are becoming more demanding about what they’re expecting for future gains. The news on the economic front has been steady, if not unspectacular, and the earnings picture has been mixed at best.”

     With the flow of corporate earnings picking up, equities have lost momentum in the last three sessions as results failed to inspire investors to fatten a rally that’s lifted the S&P 500 more than 14 percent from a 22-month low in February. A recovery in oil prices, optimism that central banks will continue their efforts to boost growth and signs of improvement in China had bolstered the rebound, with the gauge this week briefly coming within 1 percent of a record set last May.

     The advance has come even as profits are forecast to slide at the steepest pace since the financial crisis. Analysts project first-quarter income shrank 9.3 percent at S&P 500 firms, compared with predictions for flat growth at the start of the year. With 130 index members having reported, roughly 82 percent have beaten profit estimates, while 59 percent have exceeded sales predictions.

     Coca-Cola Co. and Travelers Cos. rebounded Friday from selloffs this week following their results, with both advancing more than 1.8 percent to help the Dow and S&P 500 wipe out earlier losses. Wells Fargo & Co. and Bank of America Corp. climbed at least 1.1 percent to lead banks to a fourth gain in five days.

     Along with earnings, investors’ attention will also turn to the Federal Reserve’s looming two-day meeting, with an interest- rate decision due on Wednesday. Traders are pricing in zero chance the Fed will raise rates next week, pegging November as the first month with at least even odds for a boost.                        

     Meanwhile, the Bank of Japan may offer a negative interest rate on some loans to spur lending, according to people familiar with talks at the central bank, duplicating a policy the European Central Bank adopted in March. The ECB yesterday left its rates at record lows and kept the size of its bond-buying program unchanged.

     In Friday’s trading, eight of the S&P 500’s 10 main industries rose, while technology shares lost 1.9 percent and consumer discretionary companies slipped. Energy producers added 1.3 percent. The Chicago Board Options Exchange Volatility Index fell 5.2 percent to 13.22. The measure of market turbulence known as the VIX is down 5.2 percent for the month, holding near the lowest levels since August. About 7.4 billion shares traded hands on U.S. exchanges, 8 percent below the three-month average.

     Facebook Inc. amplified the rout in technology sparked by Alphabet and Microsoft, with the social network’s shares losing 2.5 percent, after falling as much as 3.9 percent. Visa Inc. sank 2.1 percent after agreeing to amend the terms of its planned acquisition of Visa Europe Ltd, while quarterly results at the world’s largest payments network exceeded analysts’ forecasts.

     Software companies in the S&P 500 slumped along with Microsoft, falling 3.1 percent to a four-week low after the group just reached an all-time high on Monday. Adobe Systems Inc. and Red Hat Inc. lost at least 1.6 percent.

     American Airlines Group Inc. was the biggest decliner in the Dow Jones Transportation Average, slipping 4.5 percent. The world’s largest airline carrier said today it was disappointed with its first-quarter revenue and cautioned that passenger revenue for each seat flown a mile, a benchmark gauge for airlines, will continue falling all year.

     Hawaiian Airlines parent Hawaiian Holdings Inc. plunged 11 percent after its quarterly revenue was short of estimates and the company provided an outlook. The shares had rallied 58 percent from a February low to an all-time high on Tuesday. A Bloomberg index of U.S. airlines lost 2.4 percent Friday to finish the worst week since February.                       

      Energy companies in the S&P 500 closed at the highest level since Dec. 1 as West Texas Intermediate crude futures added 1.3 percent, a third weekly advance as declining U.S. production provided more evidence that the market is rebalancing.

     Southwestern Energy Co. surged 15 percent to a five-month high after reporting profit and sales that exceeded consensus analyst estimates. Anadarko Petroleum Corp. and Chesapeake Energy Corp. climbed at least 5 percent.

     The S&P 500 Financials Index increased 1 percent, its ninth gain in the last 11 trading days. SunTrust Banks Inc. rallied 5.2 percent to a 2016 high after reporting earnings and revenue that beat forecasts. Comerica Inc. and E*Trade Financial Corp. added more than 3.1 percent.

     Consumer discretionary stocks fell as Starbucks Corp. lost 4.9 percent, its steepest selloff in more than two months, after posting quarterly sales that trailed estimates as growth in the coffee giant’s Americas region slowed. Royal Caribbean Cruises Ltd. and Marriott International Inc. decreased more than 2.4 percent, while Amazon.com Inc. lost 1.7 percent, slipping for the third time in four days.

     Advanced Micro Devices Inc. was one of the bright spots in tech, soaring 52 percent, the most on record, after saying it’s licensing technology to a Chinese, state-backed joint venture that will produce server processors for that country’s market.

 

Have a wonderful weekend everyone.

 

Be magnificent!

Better than a thousand hollow words,

is one word that brings peace.

Buddha

As ever,

 

Carolann

 

Pessimism is a luxury that a Jew can never allow himself.

                                            -Golda Meir, 1898-1978

 

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:

Full moon tonight!

First kindergarten was established on this day in 1837.

Memrise:  You can now practice a new language on the way to work. The app Memrise lets you practice your language skills with various tools, including audio and images that give you memory tricks.  You can also take courses on topics like modern art and constellations.  The free app is available on iOS and Android.

Traditional Irish music meets jazz:  The Gloaming, an Irish-American supergroup whose album The Gloaming 2 is already the year’s most talked about album.  Since their debut in 2014, The Gloaming have become an international phenomenon with their blend of traditional influences, jazz and fabulous vocals of larla Ó Lionáird.

PHOTO OF THE DAY

 

Market Closes for April 21^st, 2016

Market Index	Close	Change
Dow Jones	17982.52	-113.75   -0.63%
S&P 500	2091.48	-10.92   -0.52%
NASDAQ	4945.887	-2.243   -0.05%
TSX	13881.20	-30.09
		-0.22%

International Markets

Market Index	Close	Change
NIKKEI	17363.62	+457.08
		+2.70%
HANG SENG	21622.25	+385.94
		+1.82%
SENSEX	25880.38	+36.20
		+0.14%
FTSE 100	6381.44	-28.82
		-0.45%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.457	1.335
CND. 30 Year Bond	2.052	2.032
U.S.    10 Year Bond	1.8628	1.8450
U.S. 30 Year Bond	2.6850	2.6545

Currencies

BOC Close	Today	Previous
Canadian $	0.78523	0.79027
US $	1.27352	1.26539
Euro Rate 1 Euro=		Inverse
Canadian $	1.43739	0.69570
US $	1.12868	0.88599

Commodities

Gold	Close	Previous
London Gold Fix	1249.25	1252.00
Oil	Close	Previous
WTI Crude Future	42.23	42.63

Market Commentary:

113,000: Tax havens set up in the British Virgin Islands – by far the most popular venue – by Panama-based law firm Mossack Fonseca.

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, halting a three-day gain, as global equities halted an advance amid growing concern that central-bank stimulus is failing to achieve results. Consumer staples producers and phone companies led declines, while Concordia Healthcare Corp. boosted health-care shares.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge lost 0.2 percent to 13,881.20 at 4 p.m. in Toronto, after closing yesterday at a six-month high. The benchmark gauge is one of the best-performing developed markets in the world this year with a 6.7 percent gain. Trading of shares was 11 percent higher than the 30-day average.

     The European Central Bank left its interest rates unchanged at record lows while maintaining asset purchases of 80 billion euros a month. ECB President Mario Draghi asked for more time to allow the unprecedented stimulus measures to work, while calling on governments to do more.

     Royal Bank of Canada, the nation’s largest lender, retreated 1.5 percent to lead financial services stocks lower. Alimentation Couche-Tard Inc. dropped 3.8 percent as consumer staples stocks slid.

     Crude in New York fell 2.3 percent, retreating from the highest level in almost five months. Crude inventories climbed to 538.6 million barrels last week, the highest level since 1930, U.S. data showed. OPEC members and other producers plan to meet in Russia, possibly in May, to again discuss a potential production cap after talks Sunday in Doha failed to produce a deal.

     Meanwhile, Kinross Gold Corp. and Barrick Gold Corp. posted among the biggest advances in raw-materials producers in the S&P/TSX, rallying more than 3.6 percent. Concordia jumped 25 percent, the most since March 2015, to push health-care stocks higher. Blackstone Group LP is considering a takeover of Concordia, according to people familiar with the matter.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 17 percent recovery for the S&P/TSX from a low on Jan. 20. The Canadian benchmark now trades at 22.1 times earnings, about 15 percent higher than the 19.1 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Bombardier Inc. dropped 1.2 percent after TD Securities equity analyst Timothy James lowered his rating for the stock. The struggling aircraft manufacturer’s negotiations with the Canadian government over aid include seeking assurances on jobs, research spending and its head office, according to the cabinet minister leading the review. 

US

By Oliver Renick

     (Bloomberg) — The Standard & Poor’s 500 Index fell the most in two weeks, sliding from a four-month high amid a mix of corporate earnings that provided little incentive for investors to send U.S. stocks higher.

     Equities failed to extend a climb toward fresh records as earnings season picked up, dispensing enough disappointment to overshadow gains in shares of companies that beat expectations. Verizon Communications Inc. and Travelers Cos. dropped more than 3.3 percent after reporting results, while Biogen Inc. rallied and Union Pacific Corp. jumped to the highest since November as their earnings exceeded forecasts. After the markets closed, Google parent Alphabet and Microsoft Corp. fell as their results missed predictions.

     The S&P 500 retreated 0.5 percent to 2,091.48 at 4 p.m. in New York, declining from the highest level since Dec. 1. The Dow Jones Industrial Average lost 113.75 points, or 0.6 percent, to 17,982.52 after reaching a nine-month high. The Nasdaq Composite Index decreased less than 0.1 percent. About 7.4 billion shares traded hands on U.S. exchanges, 8 percent below the three-month average.

     “We’ve gone up 15 percent in two months so pauses here are not unexpected,” said  Steve Chiavarone, a portfolio manager with Federated Investors in New York. “Earnings are obviously very much in the news right now. We came through the financials part pretty well — expectations were set low and there were no events that weren’t expected — but that was just the first test of the season.”

     The S&P 500 has climbed 14 percent since its February low, bolstered by a rebound in oil prices, easing of concerns over China’s slowdown and optimism Federal Reserve policies will remain supportive of growth. The benchmark is less than 2 percent away from a record reached last May, after erasing 2016 losses of as much as 11 percent.

     Energy shares in the benchmark have led the two-month rebound on crude’s recovery, mimicking a similar rally late last year that followed the S&P 500’s first correction in four years. That surge eventually withered in early November after the index came within 1 percent of its record, a level the gauge briefly reached on Wednesday. In today’s selling, the two groups with the best performance this year — phone companies and utilities — were the hardest hit.

     The earnings season is well under way, with more than 100 of S&P 500 companies through with reporting. Analysts are projecting a 9.5 percent decline in first-quarter profit for index members, compared with forecasts for flat growth at the start of the year.

     Alphabet dropped 4.6 percent as of 4:44 p.m. as quarterly sales and profit missed analysts’ estimates. The world’s largest Internet search provider is grappling with a slowdown in advertising. Microsoft sank 4.2 percent after its earnings missed, with a weak personal-computer market pulling down results.                       

     Mattel Inc. fell 5.8 percent after the world’s largest toymaker reported a bigger-than-forecast quarterly loss. Qualcomm Inc. declined 0.8 percent after executives indicated the maker of smartphone chips is bracing for the loss of some orders from Apple Inc. That sent Apple 1 percent lower. Under Armour Inc. added 6.8 percent after profit topped predictions and its raised its annual forecast. American Express Co. gained 0.9 percent after its earnings beat estimates.

     “Earnings for the most part are not as bad as feared,” said Jasper Lawler, a London-based market analyst at CMC Markets Plc. “Just the Fed by itself at this point is not enough to really catalyze the next big move in the market. You have to have earnings move alongside that. We expect the present move in the market to peter out as we get closer to the older highs because we just don’t have the earnings to justify the next leg.”

     The European Central Bank today left its interest rates at record lows and kept the size of its bond-buying program unchanged. President Mario Draghi said during a press conference the ECB remains ready to step up stimulus if the outlook for the euro area worsens, while adding that risks to the euro-area outlook are tilted to the downside.

     As U.S. policy makers weigh data to decide on the path for rates, a report today showed jobless claims unexpectedly decreased to the lowest level since 1973 as the labor market remains a pillar of support in the world’s largest economy. A separate report showed an index of leading economic indicators rose less than forecast in March and the prior month was revised lower.

     Fed officials will hold a two-day meeting next week, with the rate decision on April 27. Traders are pricing in zero chance of higher borrowing costs next week, with November now the first month with at least even odds of a boost.

     Amid Thursday’s trading, the Chicago Board Options Exchange Volatility Index rose 5.1 percent to 13.95. The measure of market turbulence known as the VIX yesterday snapped a six- session streak of declines, the longest in almost two months.

     Among the S&P 500’s 10 main industries, phone companies fell 2.7 percent under Verizon’s drag, while utilities sank 2.2 percent to mark the worst two-day slide since August. Consumer staples, which reached a record earlier this month, sank 1.7 percent for the steepest back-to-back drop since December. Health-care shares were the only group to gain as Biogen led a rally in drug developers.

     Verizon lost 3.3 percent, the most since December 2014 to reach a two-month low. The company warned that its standoff with about 39,000 striking workers will put pressure on second- quarter earnings, overshadowing an otherwise positive earnings report.                       

     Coca-Cola Co. slid 1.6 percent, weighing on consumer staples for a second day following an underwhelming quarterly report on Wednesday. The beverage maker had the worst back-to- back drop in seven years. PepsiCo. Inc. lost 1.4 percent on top of a 1.8 percent decline yesterday. Whole Foods Market Inc. retreated 4 percent, the most in nearly three months.

     Financial companies fell for the first time in four days after reaching a 2016 high, with Travelers capping its biggest drop since 2011. The property-casualty insurer said first- quarter profit slipped 17 percent as catastrophe costs climbed and investment income dropped on lower hedge fund returns. Chubb Ltd. and Hartford Financial Services Group Inc. lost at least 3.6 percent.

     United Continental Holdings Inc. declined the most in 11 months after a weak revenue forecast sparked concern that the airline is struggling to catch up with its rivals’ financial performance. A Bloomberg index of U.S. airlines tumbled 3 percent, the steepest since February, with Delta Air Lines Inc. and American Airlines Group Inc. losing more than 3 percent.

     The Nasdaq Biotechnology Index jumped 2.8 percent to a three-month high, boosted by Biogen’s climb and gains of more than 2.4 percent in Celgene Corp. and Regeneron Pharmaceuticals Inc. The S&P 500’s health-care group rose for a fourth session, the longest winning streak this year.

     General Motors Co. increased 1.5 percent to a three-month high as first-quarter earnings and sales exceeded estimates amid record results in North America, and it stepped toward a 15-year goal of ending losses in Europe.

     Among other companies moving on corporate news, Viacom Inc. rallied almost 14 percent, the biggest jump in more than seven years, after reaching new programming deal with Dish Network Corp. that averts the blackout of channels such as Comedy Central and MTV.

 

Have a wonderful evening everyone.

 

Be magnificent!

That which is immoral is imperfectly moral,

just as that which is false is true to an inadequate degree.

Rabindranath Tagore

As ever,
 

Carolann

 

It is not because things are difficult that we do not dare.  

It is because we do not dare that they are difficult.

                                       -Seneca, 5 BC-65AD

 

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:

POEM: Aristotle wrote in “The Poetics” that poets have “an eye for resemblances.”  At first, the matter-of-fact statement of likeness in this poem made me laugh.  Then it made me think:  What if we all walked through the world with such an eye, looking at the inanimate objects that surround us?  What might we see that we relate to, and resemble? –Matthew Zapruder, NY Times, April 19, 2016.

The Pier Leaps Out

 By Monica Fambrough

The pier leaps out
toward the ocean
with its skinny boards stretching
dangerous little gaps
to reveal beneath the gangway
some blackening sea lions,
and I think,
I can relate to that pier.

Matthew Zapruder is the author of four collections of poetry, most recently “Sun Bear.”  He teaches at Saint Mary’s College of California and is editor at large at Wave Books.  Monica Fambrough is a poet whose debut collection, “Softcover,” was published last fall by Natural History Press.

PHOTOS OF THE DAY

Terry Hutt, a royal fan stands in front of the castle in Windsor, England, Wednesday. Royal fans are gathering in Windsor ahead of Thursday’s celebrations for the 90th birthday of Britain’s Queen Elizabeth II. Kirsty Wigglesworth/AP

President Barack Obama and Saudi Arabia’s King Salman walk to President Obama’s motorcade after meeting at Erga Palace in Riyadh, Saudi Arabia, Wednesday. The president began a six day trip to talk, on a broad range of issues, including efforts to rein in the Islamic State group. Carolyn Kaster/AP

Market Closes for April 20^th, 2016

Market Index	Close	Change
Dow Jones	18096.27	+42.67   +0.24%
S&P 500	2102.40	+1.60   +0.08%
NASDAQ	4948.129	+7.799   +0.16%
TSX	13911.29	+44.01
		+0.32%

International Markets

Market Index	Close	Change
NIKKEI	16906.54	+32.10
		+0.19%
HANG SENG	21236.31	-199.90
		-0.93%
SENSEX	25844.18	+27.82
		+0.11%
FTSE 100	6410.26	+4.91
		+0.08%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.335	1.328
CND. 30 Year Bond	2.032	2.013
U.S.    10 Year Bond	1.8450	1.7851
U.S. 30 Year Bond	2.6545	2.5936

Currencies

BOC Close	Today	Previous
Canadian $	0.79027	0.79025
US $	1.26539	1.26542
Euro Rate 1 Euro=		Inverse
Canadian $	1.42937	0.69961
US $	1.12958	0.88528

Commodities

Gold	Close	Previous
London Gold Fix	1252.00	1255.40
Oil	Close	Previous
WTI Crude Future	42.63	41.08

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a third day, trading at a five-month high, as the nation’s lenders advanced and energy producers reversed losses after oil rebounded on U.S. data showing output fell, while silver producers extended gains.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge added 0.3 percent to 13,911.29 at 4 p.m. in Toronto, the highest level since October. The benchmark gauge is one of the best-performing developed markets in the world this year with a 6.9 percent gain.

     Bank of Nova Scotia and Toronto-Dominion Bank climbed at least 0.9 percent as financial services stocks increased 0.7 percent, contributing the most to gains in the S&P/TSX. Seven of 10 industries in the index advanced on trading volume about 26 percent higher than the 30-day average.

     Raw-materials producers declined 0.9 percent as declines among gold producers offset extended gains among silver and base metals mining companies. Silver advanced to a May high a day after entering a bull market, extending gains this month to 11 percent. Precious metals have been popular this year, with gains in both gold and silver exceeding 18 percent. Silver is up 24 percent since Dec. 14, meeting the common definition of a bull market.

     Cenovus Energy Inc. and PrairieSky Royalty Ltd. rallied at least 3.3 percent to lead energy producers to a 0.3 percent advance. Crude in New York rose 3.8 percent, climbing to the highest level in almost five months. Oil output fell to 8.95 million barrels a day in the week ended April 15, the lowest since October 2014, while rig counts also slipped to a November 2009 low last week. OPEC members and other producers plan to meet in Russia, possibly in May, to again discuss a potential production cap, Iraq’s Deputy Oil Minister said.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 17 percent recovery for the S&P/TSX from a low on Jan. 20. The Canadian benchmark now trades at 22.1 times earnings, about 15 percent higher than the 19.2 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Canadian Pacific Railway Ltd. lost 0.7 percent, after falling as much as 3.7 percent. The railroad operator reported first-quarter revenue slipped 4 percent to C$1.59 billion from year-ago levels. While Canadian Pacific posted profit ahead of consensus estimates while also boosting its dividend, investors were perhaps looking for a larger buyback than the company unveiled, BMO Capital Markets analyst Fadi Chamoun said in a note. Canadian Pacific will buy back as much as C$1.31 billion in stock.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks edged higher as an oil rally lifted energy producers, with the Standard & Poor’s 500 Index holding at a four-month high amid a slate of corporate earnings that gave investors little clear direction.

     An afternoon rally stumbled in the final hour of trading to leave equities little changed, wiping out much of the gains sparked by a rebound in crude. Oil jumped after Iraq’s oil minister said major OPEC and other oil producers will meet possibly next month in a new push to freeze output. Meanwhile, a better-than-forecast profit from Discover Financial Services helped offset underwhelming results at Coca-Cola Co.

     The S&P 500 gained 0.1 percent to 2,102.40 at 4 p.m. in New York, after rising as much as 0.5 percent and briefly touching the highest level since July. The Dow Jones Industrial Average added 42.67 points, or 0.2 percent, to 18,096.27, trimming a 114-point climb. The gauge held at a nine-month high. The Nasdaq Composite Index increased 0.2 percent. About 7.5 billion shares traded hands on U.S. exchanges, 7.4 percent below the three- month average.

     “There’s been no bearish catalyst that’s surfaced to really knock things down and earnings are spilling in and going as expected,” said Nick Kalivas, senior equity product strategist at Invesco PowerShares in Downers Grove, Illinois, which has about $100 billion in its funds. “We’re now a couple of heartbeats off the all-time high and that’s creating performance anxiety among fund managers, causing people to think the picture’s not as glum. It’s keeping an underlying bid in the market.”

     Discover shares had the biggest jump since 2011 amid gains in credit-card spending. UnitedHealth Group Inc. rose more than 2.1 percent for a second day after its plans to exit Obamacare in 16 states to curb losses. Coke fell the most since August with earnings mostly in line with expectations, disappointing investors expecting a stronger turnaround for the beverage maker. Boeing Co. sank 1.6 percent after Bank of America Corp. downgraded the stock.

     The S&P 500 has rallied 15 percent since reaching a 22- month low in February and is up 2.9 percent for the year, bolstered by a recovery in oil prices, signs of stabilization in China’s slowdown and optimism central bankers will continue efforts to support growth. The gauge is also 1.3 percent away from a record reached last May.

     Still, the gains in equities have come as earnings are forecast to slide at the steepest pace since the financial crisis. Analysts project first-quarter profits shrank 9.5 percent at S&P 500 firms, compared with estimates for flat earnings growth at the start of the year. Microsoft Corp., General Motors Co. and Google parent Alphabet Inc. are among 36 companies in the index scheduled to report on Thursday.

     As policy makers and investors scrutinize data to judge the strength of the U.S. economy and the outlook for interest rates, a report this morning showed purchases of previously owned homes rose more than projected in March, indicating resilience in demand heading into the spring selling season. Traders are pricing in no chance the Federal Reserve will raise rates at its meeting next week, with December now the first month with at least even odds for a boost.

     In Wednesday’s trading, the Chicago Board Options Exchange Volatility Index rose 0.3 percent to 13.28, snapping its longest streak of declines in almost two months. The measure of market turbulence known as the VIX is holding near the lowest level since August. A Goldman Sachs gauge of the most shorted stocks had the biggest climb in a week amid its longest stretch of gains since March 7.

     Energy producers in the S&P 500 pushed a three-day advance to 4.3 percent as crude rallied for a second day. The group shook off a morning drop as Chevron Corp. increased 1.2 percent, while Schlumberger Ltd. and Devon Energy Corp. gained more than 1.8 percent. West Texas Intermediate crude futures rose 3.8 percent, wiping out a 3 percent retreat to close above $42 a barrel.

     Discover Financial surged 8.2 percent to a four-month high to lead the benchmark’s financial group. Competitor American Express Co. added 2.3 percent to a three-month high before its earnings report. Banks in the S&P 500 rose for a third day, trimming 2016 losses to less than 6.5 percent from as much as 23 percent. Bank of America climbed 3.3 percent, rising for the eighth time in nine days and adding 16 percent during that span. The stock is still down about 11 percent this year.

     U.S. Bancorp. gained 2 percent, even as the nation’s largest regional lender said profit dropped 3.1 percent in the first quarter as provisions for bad loans surged 25 percent, driven by a jump in downgrades on energy-related credits.

     Yahoo! Inc. increased 4.2 percent to the highest since July, buoying the technology group, after Chief Executive Officer Marissa Mayer said the company is moving swiftly to consider offers to buy its Web operations. First-quarter revenue also exceeded analysts’ estimates. Intel Corp. climbed 1.3 percent as the semiconductor company plans to cut 12,000 jobs and shift focus to higher-growth areas, such as chips for data center machines and Internet-connected devices.

     Also within chipmakers, Linear Technology Corp. rallied 4 percent after its quarterly sales outpaced estimates, while its outlook for the current quarter also beat some forecasts. Broadcom Ltd. and Texas Instruments Inc. advanced at least 1.1 percent.                          

     Coca-Cola was the strongest drag today on the S&P 500, with consumer staples joining utilities as the biggest losers among the S&P 500’s 10 main industries. Coke slid 4.8 percent to cut its year-to-date gain by more than half. The shares had reached an all-time high two weeks ago. Hershey Co. lost 3.1 percent after Bank of America downgraded the shares to the equivalent of sell, citing in part sluggish U.S. chocolate sales. Procter & Gamble Co. slid 2.1 percent, the steepest drop since Feb. 11.

     Utilities tumbled 2.4 percent to a one-month low, relinquishing the mantle as the S&P 500’s top-performing group this year to phone companies. NextEra Energy Inc. and Dominion Resources Inc. dropped more than 2.1 percent.

     Among other companies moving on corporate news, Lexmark International Inc. added 9.4 percent after the printer maker accepted a $3.6 billion takeover offer from a group headed by China’s Apex Technology.

 

Have a wonderful evening everyone.

 

Be magnificent!

Selfishness in man is a beginning.

Rabindranath Tagore

As ever,

 

Carolann

 

The evil of the world is made possible by nothing

but the sanction you give it.

                                  -Ayn Rand, 1905-1982

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Workmen install a new mural by Frederick Wimsett of Britain’s Queen Elizabeth II to mark her birthday celebrations in central London on Tuesday. The longest-reigning monarch in British history turns 90 on Thursday. Alastair Grant/AP

A worker cleans a statue of South Korean Adm. Yi Sun-sin at Gwanghwamun Plaza in Seoul, South Korea, Monday. Adm. Yi was a Korean hero who defeated the Japanese invaders in the 16th century. Ahn Young-joon/AP

Market Closes for April 19^th, 2016

Market Index	Close	Change
Dow Jones	18053.60	+49.44   +0.27%
S&P 500	2100.77	+6.43   +0.31%
NASDAQ	4940.332	-19.685   -0.40%
TSX	13864.96	+145.14
		+1.06%

International Markets

Market Index	Close	Change
NIKKEI	16874.44	+598.49
		+3.68%
HANG SENG	21436.21	+274.71
		+1.30%
SENSEX	25816.36	+189.61
		+0.74%
FTSE 100	6405.35	+51.83
		+0.82%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.328	1.301
CND. 30 Year Bond	2.013	1.994
U.S.    10 Year Bond	1.7851	1.7711
U.S. 30 Year Bond	2.5936	2.5799

Currencies

BOC Close	Today	Previous
Canadian $	0.79025	0.78165
US $	1.26542	1.27935
Euro Rate 1 Euro=		Inverse
Canadian $	1.43753	0.69564
US $	1.13589	0.88037

Commodities

Gold	Close	Previous
London Gold Fix	1255.40	1234.30
Oil	Close	Previous
WTI Crude Future	41.08	39.78

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks gained a second day, extending a five-month high, as raw-materials producers rallied with silver entering a bull market and gold advancing a third day.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge added 1.1 percent to 13,867.28 at 4 p.m. in Toronto, the highest level since Oct. 23. The benchmark gauge remains one of the best-performing developed markets in the world this year with a 6.6 percent gain. Trading volume was about 8 percent higher than the 30-day average.

     Silver Wheaton Corp. and First Majestic Silver Corp. jumped at least 7.9 percent as resource shares led gains out of 10 industries in the S&P/TSX. All but seven stocks in the 45-member group advanced with gold and copper producers also gaining.

     Silver futures for May delivery gained 4.4 percent in New York to settle at $16.972 an ounce, a more-than 20 percent gain from the most recent low in December to meet the common definition of a bull market. Gold for June delivery rose 1.4 percent, while copper on the London Metal Exchange rose a second day to a three-week high.

     All but one energy stock in the S&P/TSX increased. Crude in New York rose for the first time in five days, climbing 3.3 percent in New York. The labor stoppage in Kuwait that initially slashed daily output by as much as 1.7 million barrels entered a third day, offsetting earlier concern after OPEC members were unable to come to an accord on a possible production freeze. Crescent Point Energy Corp. was among the biggest gainers in the group, rallying 10 percent.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 17 percent recovery for the S&P/TSX from a low on Jan. 20. The Canadian benchmark now trades at 22.1 times earnings, about 15 percent higher than the 19.2 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Gluskin Sheff & Associates Inc. added 4.1 percent to a three-day rally after Scotia Capital analyst Phil Hardie boosted his rating for the stock to sector outperform, or the equivalent of a buy. The stock, which is still down 11 percent this year, looks oversold relative to its value, Hardie said in the note.

     Telecommunications stocks lost 0.7 percent led by Rogers Communications Inc. The cellphone, Internet and TV services provider slipped 1.9 percent after posting first-quarter earnings short of analysts’ estimates.

US

By Oliver Renick

     (Bloomberg) — The Standard & Poor’s 500 Index rose Tuesday, extending a four-month high as commodity producers rallied in a seesaw session amid mixed results in corporate earnings.

     Raw-material companies surged to the highest in nine months, while energy shares jumped on crude’s first gain in five days. Johnson & Johnson, Goldman Sachs Group Inc. and UnitedHealth Group Inc. advanced at least 1.5 percent amid better-than-estimated earnings, countering Netflix Inc.’s biggest drop since 2014 and the steepest slide for International Business Machines Corp. since October as results disappointed. Illumina Inc. plunged 23 percent after the gene-sequencing company’s revenue missed predictions.

     The S&P 500gained 0.3 percent to 2,100.80 at 4 p.m. in New York, closing above the 2,100 mark for the first time since Dec. 1. The Dow Jones Industrial Average added 49.44 points, or 0.3 percent, to 18,053.60, extending a nine-month high. The Nasdaq Composite Index slid 0.4 percent under the drag from Netflix and Illumina. About 7.1 billion shares traded hands on U.S. exchanges, 12 percent below the three-month average.

     “The recession talk from February is off the table and we’re also seeing stability in China which is helping global commodities in general,” said Mark Kepner, an equity trader at Themis Trading LLC in Chatham, New Jersey, in a phone interview. “‘I would’ve never thought I’d come into work with Netflix and IBM down and the S&P 500 up, but the momentum just keeps building.”

     Equities surged in morning trading with the Dow rising nearly 100 points and then lost momentum at midday as declines in IBM and Netflix reached their worst levels. Both the S&P 500 and Dow briefly erased a climb before regaining their footing in the afternoon as commodity producers and banks added to their gains.

     The S&P 500 has rebounded 14 percent since its February low, helped by a rebound in oil prices, signs of stabilization in China’s slowdown and optimism central-bank policies will remain supportive of growth. After erasing 2016 losses, the benchmark is less than 1.5 percent from a record reached last May. The Russell 2000 on Monday erased its loss for the year, wiping out a drop of as much as 16 percent.

     While investors’ reaction to corporate earnings has been mostly positive so far, they aren’t shy about punishing companies that don’t deliver. Netflix tumbled 13 percent after its forecast indicated weakening subscriber growth in the second quarter. IBM retreated 5.6 percent as its second-quarter profit estimate was short of projections. Philip Morris International Inc. lost 1.3 percent after its earnings fell short of estimates.

     Analysts project first-quarter profits for companies in the benchmark equity index shrank 9.5 percent. With only about 10 percent of S&P 500 members having reported, 58 percent have exceeded revenue forecasts while 78 percent have beaten earnings predictions.

     Along with companies’ quarterly results, policy makers and investors are scrutinizing data to discern the strength of U.S. growth and the outlook for interest rates. A report today showed new-home construction slumped more than projected in March. Permits, a proxy for future construction, also dropped. Traders are pricing in zero chance the Federal Reserve will raise rates at its meeting next week, while the first month with at least even odds for a boost is December.

     Fed Bank of Boston President Eric Rosengren said in a speech Monday the market’s outlook for rates is too dovish, implying a path for increases that “would likely result in an overheating that necessitates the Fed eventually raising interest rates more quickly than is desirable,” jeopardizing growth.

     Among the S&P 500’s 10 main industries, raw-materials and energy shares were the strongest performers today, rising at least 1.8 percent. Financials climbed 1.1 percent, boosted by banks. Technology companies lost 0.6 percent under IBM’s drag. The Chicago Board Options Exchange Volatility Index slipped 0.8 percent to 13.24, with the gauge of market turbulence known as the VIX hovering near an eight-month low.

     Raw-material companies jumped the most in a month as the dollar sank to the lowest since June, boosting the value of commodities priced in the currency. Copper miner Freeport- McMoRan Inc. rallied 9 percent to a five-month high, and Newmont Mining Corp. added 4.9 percent as gold climbed. Fertilizer maker Mosaic Co. increased 6.5 percent, its strongest since February.

     In energy, Transocean Ltd. surged 9.5 percent, the most in more than six weeks, and Diamond Offshore Drilling Inc. gained 6.3 percent to lead the rally. Chevron Corp. added 1.8 percent to reach a 10-month high. West Texas Intermediate crude futures increased 3.3 percent to top $41 a barrel.

     Banks in the benchmark climbed for the seventh time in eight days, rising to a three-month high. Comerica Inc. jumped 4.2 percent, to the highest this year even as its earnings missed estimates and its outlook was little changed. Wells Fargo & Co. and Bank of America Corp. increased more than 1.9 percent.

     The tech group posted the biggest retreat since April 7, when the Nasdaq 100 Index lost 1.5 percent. IBM capped the steepest slide since October, and EBay Inc. dropped 4 percent after Morgan Stanley cut its rating and target price on the shares. Qorvo Inc. and Skyworks Solutions Inc. fell at least 3.3 percent after downgrades from Raymond James & Associates Inc.

     Viacom Inc. was the third-biggest loser in the S&P 500, contributing with Netflix to the decline in consumer discretionary shares. The media company dropped 8.3 percent, the most in two months as a fee dispute with Dish Network Inc. escalated. Amazon.com Inc. fell 1.2 percent, snapping a seven- day winning streak that was the longest in 20 months.

 

Have a wonderful evening everyone.

 

Be magnificent!
 

 “The journey of a thousand miles begins with one step.” Lao Tzu

As ever,

 

Karen
 

 “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” John Quincy Adams

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

An Israeli woman takes a selfie in a buttercup field near Kibbutz Nir Yitzhak in southern Israel, just outside the Gaza Strip, on Monday. Amir Cohen/Reuters

Britain’s Prince William and his wife Catherine, the Duchess of Cambridge, pose at the Taj Mahal in Agra, India, Saturday. Adnan Abidi/Reuters

Market Closes for April 18^th, 2016

Market Index	Close	Change
Dow Jones	18004.16	+106.70   +0.60%
S&P 500	2094.34	+13.61   +0.65%
NASDAQ	4960.017	+21.801   +0.44%
TSX	13719.82	+82.62
		+0.61%

International Markets

Market Index	Close	Change
NIKKEI	16275.95	-572.08
		-3.40%
HANG SENG	21161.50	-154.97
		-0.73%
SENSEX	25816.36	+189.61
		+0.74%
FTSE 100	6353.52	+9.77
		+0.15%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.301	1.267
CND. 30 Year Bond	1.994	1.971
U.S.    10 Year Bond	1.7711	1.7518
U.S. 30 Year Bond	2.5799	2.5586

Currencies

BOC Close	Today	Previous
Canadian $	0.78165	0.77988
US $	1.27935	1.28225
Euro Rate 1 Euro=		Inverse
Canadian $	1.44692	0.69112
US $	1.13098	0.88419

Commodities

Gold	Close	Previous
London Gold Fix	1234.30	1227.10
Oil	Close	Previous
WTI Crude Future	39.78	40.36

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, reversing an earlier loss to close at a five-month high as gold producers gained a second day amid demand for haven assets, while energy shares wiped out declines.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge added 0.6 percent to 13,719.82 at 4 p.m. in Toronto, the highest close since Oct. 29. The increase extended a rally after the index advanced by the most last week since mid-March. The S&P/TSX remains one of the best-performing developed markets in the world this year with a 5.5 percent gain. Trading volume was 15 percent lower than the 30-day average.

     West Texas Intermediate crude slipped 1.7 percent in New York, clawing back much of an earlier decline that reached as much as 6.8 percent as traders turned their attention to a labor strike in Kuwait that cut output for a second day. Kuwait, the fourth-largest member of OPEC, has seen its output cut by about 60 percent due to the worker strike.

     A meeting between the world’s largest oil producers in Doha on Sunday, which dragged on for more than 10 hours beyond its initially scheduled conclusion, finished with no final accord. Saudi Arabia maintained its stance that it wouldn’t restrain its production without commitments from other producers including Iran to do the same, a move Iran is resisting. OPEC and non-OPEC producers may meet again in June, according to a Nigerian minister.

     Energy producers in the S&P/TSX added 1.4 percent, after retreating as much as 1.8 percent. Canadian Natural Resources Ltd. and Enbridge Inc. added at least 1.9 percent to lead the industry higher in mixed trading, with 36 of 50 companies in the S&P/TSX Energy Index in positive territory.

     Yamana Gold Inc. added 2.9 percent as raw-materials producers advanced 1.1 percent. Gold rose a second day as the selloff in oil increased demand for the precious metal as a haven. Teck Resources Ltd. and First Quantum Minerals Ltd. climbed more than 6.9 percent as copper rebounded from a loss while zinc climbed for a second session as stockpiles in London dropped to the lowest since 2009.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 16 percent recovery for the S&P/TSX from a low on Jan. 20. The Canadian benchmark now trades at 21.8 times earnings, about 14 percent higher than the 19.1 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Pembina Pipeline Corp. added 1.6 percent, climbing to an August high. The company is raising about C$150 million through a share offering to pay down debt and help fund Pembina’s capital program this year.

US

 By Jeremy Herron and Oliver Renick

     (Bloomberg) — U.S. stocks advanced, pushing the Dow Jones Industrial Average past 18,000 for the first time in nine months, as Brent crude pared losses amid falling output in Kuwait. Japanese index futures signaled advances.

     The Standard & Poor’s 500 Index climbed to a four-month high, while the Dow closed at the highest since July. Crude pared losses as a strike reduced Kuwait’s contribution, though oil in New York settled lower after the breakdown of the Doha talks. Yen-denominated contracts on the Nikkei 225 Stock Average added 0.2 percent to 16,690 on the Chicago Mercantile Exchange at 5:01 p.m. in New York.

     While the failure of large oil producers to agree to a freeze in output initially sent crude lower, losses were limited amid the strike and on speculation China’s slowdown is easing at the same time central banks remain ready to bolster growth. New York Fed President William Dudley added to confidence in the U.S. economy with comments that suggest inflation will firm, and corporate earnings have so far largely topped estimates.

     “We’ve cut our overnight decline in oil and that bounce- back has helped,” Matt Maley, an equity strategist at Miller Tabak & Co. LLC, said in a phone interview. “Unless there’s a big move in crude people will wait to see what happens and will be watching earnings. Revenues are down at these big banks but they beat expectations, they had already priced in negative earnings, and they were able to bounce.

     The S&P 500 rose 0.7 percent to 2,094.34, the highest since Dec. 2. Trading in S&P 500 shares was 6.7 percent below the 30- day average. The Dow average rose 0.6 percent to 18,004.16, the highest level since July 21. Energy producers surged 1.5 percent, erasing a loss. Hasbro Inc. climbed 5.8 percent on earnings that topped estimates thanks to sales of Star Wars items. Walt Disney Co. jumped 3.4 percent.

     Corporate earnings season picks up speed as International Business Machines Corp. and Netflix Inc. are due to release results after markets close, part of about 100 S&P 500 companies that report this week.

     The Ibovespa declined even after the lower house of Congress voted to proceed with Rousseff’s ouster. The scope of gains going forward is seen as limited given the difficulty in tackling the country’s economic and fiscal crises no matter who is in power, according to long-time watchers.

     West Texas Intermediate lost 1.4 percent to $39.78 a barrel, paring declines of as much as 6.8 percent, after Kuwait’s crude production tumbled by 60 percent to 1.1 million barrels a day and its refineries scaled back operations as the state oil company took emergency measures Sunday to cope with the first day of an open-ended labor strike.

     The discussions to freeze output stumbled in Doha as Saudi Arabia and other Gulf nations refused to agree to any deal unless all OPEC members joined — including Iran, which wasn’t present at the meeting. The European benchmark has rebounded from as low as $27.10 in January, which was the lowest since 2003.

     Cotton futures capped their biggest gain in more than eight months amid supply constraints and a sharp change in sentiment over what a liquidation of Chinese inventories will mean for the market.

     Gold futures for June delivery climbed less than 0.1 percent to settle at $1,235 an ounce.

     U.S. Treasuries fell, with the yield on 10-year notes rising by three basis points to 1.78 percent. The yield on the 30-year bond, the security most sensitive to inflation expectations, rose as Dudley said he’s confident that inflation will return to the Fed’s 2 percent target.

     Australian notes due in a decade climbed for the first time in six days, pushing their yield down six basis points to 2.49 percent. Yields on 20- and 30-year Japanese debt declined to record lows of 0.275 percent and 0.355 percent, respectively.

     The euro climbed the most in three weeks amid speculation that the European Central Bank will maintain its monetary policy when it meets this week. The euro rose 0.3 percent, the most since March 31, to $1.1316 per dollar. The currency gained 0.4 percent versus the yen after touching its lowest in three years.

     Brazil’s real, the world’s best performing currency in the first quarter on speculation Rousseff would be ousted, fell Monday after lawmakers voted in favor of impeachment.

     The ruble erased losses, rebounding with Brent crude, amid speculation the market made too much of a failure by oil producing nations to broker an output freeze.
 

Have a wonderful evening everyone.

 

Be magnificent!

“The privilege of a lifetime is being who you are.” Joseph Campbell

 

As ever,

 

Karen
 

“In order to carry a positive action we must develop here a positive vision.” Dalai Lama

 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Buyers purchase flowers at a FloraHolland warehouse in Rijnsburg, the Netherlands, Friday. Warehouses are not normally tourist stops, but the century-old Royal FloraHolland depot outside of Amsterdam where millions of flowers are distributed every day is an exception. Yves Herman/Reuters

Foreign tourists watch sea turtles released at the Kuta beach on the Indonesian island of Bali, Thursday. Bali police released thirty one turtles which they seized last week from illegal poachers. Firdia Lisnawati/AP

Market Closes for April 14^th, 2016

Market Index	Close	Change
Dow Jones	17897.32	-29.11   -0.16%
S&P 500	2079.19	-3.59   -0.17%
NASDAQ	4938.215	-7.671   -0.16%
TSX	13624.88	-43.41
		-0.32%

International Markets

Market Index	Close	Change
NIKKEI	16848.03	-63.02
		-0.37%
HANG SENG	21316.47	-21.34
		-0.10%
SENSEX	25626.75	+481.16
		+1.91%
FTSE 100	6343.75	-21.35
		-0.34%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.267	1.294
CND. 30 Year Bond	1.971	1.997
U.S.    10 Year Bond	1.7518	1.7919
U.S. 30 Year Bond	2.5586	2.6035

Currencies

BOC Close	Today	Previous
Canadian $	0.77988	0.77855
US $	1.28225	1.28444
Euro Rate 1 Euro=		Inverse
Canadian $	1.44695	0.69111
US $	1.12845	0.88618

Commodities

Gold	Close	Previous
London Gold Fix	1227.10	1233.85
Oil	Close	Previous
WTI Crude Future	40.36	41.50

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a second day, paring a weekly gain, as crude tumbled the most in two weeks ahead of a long-awaited meeting of suppliers in Doha to discuss an output freeze.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge fell 0.2 percent to 13,637.20 at 4 p.m. in Toronto, paring a weekly gain to 1.8 percent. The S&P/TSX remains one of the best-performing developed markets in the world this year with a 4.8 percent gain.

     West Texas Intermediate crude slipped a third day ahead of a key meeting this weekend on a potential output freeze. Futures dropped 2.8 percent to settle at $40.36 a barrel, the biggest drop since April 4 and reducing their gain for the week to 1.6 percent. There is a “positive feeling” among producers that an agreement may be reached at the meeting April 17 to restore stability, according to Qatar.

     The International Energy Agency yesterday predicted in a report global oil markets will “move close to balance” in the second half of the year. Oil prices have rebounded from 12-year lows in the past two months.

     Energy producers in the S&P/TSX retreated the most Friday, with a 1.7 percent decline. Canadian Natural Resources Ltd. and Crescent Point Energy Corp. fell more than 2.2 percent. Health- care shares advanced to offset the declines on trading volume 17 percent lower than the 30-day average.

     Bombardier Inc. added 1.9 percent to an October high, with the aircraft manufacturer said to be near an agreement to sell as many as 75 C Series jetliners to Delta Air Lines Inc., according to a person familiar with the talks. The deal would be the largest to date for the struggling program.

     Trading volume for Bombardier stock was almost four times the three-month average today after the company was said to reject an initial investment proposal from the Canadian government with the two sides still far apart on a deal, according to people familiar with the talks.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers through the first quarter has fueled a 15 percent recovery for the S&P/TSX from a 2013 low on Jan. 20. The Canadian benchmark now trades at 21.7 times earnings, about 15 percent higher than the 19 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Mitel Networks Corp. plunged 9.6 percent, the most since August, after the communications company agreed to buy Polycom Inc. in a $1.96-billion deal in cash and stock. The deal represents an 11 percent premium compared with Polycom’s close on Thursday.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks fell on the final day of a week in which the Standard & Poor’s 500 Index reached the highest level in four months, as technology shares joined energy producers in a decline.

     The S&P 500 dropped 0.1 percent to 2,080.73 at 4 p.m. in New York, with the gauge posting a weekly advance of 1.6 percent. The Dow Jones Industrial Average declined 29 points, or 0.2 percent, to 17,897.46 on Friday.

     Equities extended defines in the afternoon as Apple Inc. dropped 2 percent after slower-than-expected sales of the iPhone 6S and 6S Plus prompted the company to reduce its orders, the Nikkei Asian Review reported, citing unidentified suppliers. Technology stocks fell as Apple suppliers including Broadcom Ltd., Qorvo Inc., Knowles Corp. and NXP Semiconductors NV also declined on the report. Energy companies halted a three-day gain as crude retreated before major suppliers meet in Doha this weekend to discuss an output freeze.

     “We’ve had a nice week. We’re starting to see more week-to- week trading over the past few months and on Fridays, people take off some risk before the weekend,” said Joe “JJ” Kinahan, chief strategist at TD Ameritrade Holding Corp. “The nice thing about earnings so far is that CEOs have not struck a negative tone and that was one of the fears, especially given what we’ve seen in the last two quarters.”

     Financial firms have led the rise in American equities this week, with the S&P 500 closing near its highest level since Dec. 4. JPMorgan Chase & Co. and Bank of America Corp. climbed after announcing reductions in first-quarter expenses that beat analysts’ estimates. Citigroup declined 0.1 after reporting first-quarter profit that topped projections. 

     Analysts have slashed profit estimates for S&P 500 members since January, and they’re now projecting a 10 percentdecline in net income for the first quarter. Investors are also watching economic releases, after comments by Fed Chair Janet Yellen reaffirmed officials won’t rush to raise interest rates. Traders are pricing in zero chance of a raise at the end of April, with December now the first month with even odds of higher borrowing costs.

     Index futures fluctuated after a report showed factory output unexpectedly declined last month by the most since February 2015, while separate data revealed manufacturing in the New York region expanded this month. Equities remained little changed after consumer confidence unexpectedly fell in April to the weakest level in seven months

     The S&P 500 has rebounded 14 percent since its February low, putting the seven-year bull market weeks away from becoming the second-longest in history. Some investors attribute the gains to short squeezes, with a Goldman Sachs Group Inc. gauge of the 50 most-shorted stocks near its highest level of the year.

     Among stocks moving on corporate news, Cablevision Systems Corp. advanced 1.9 after the New York Post reported the deal with Altice NV is nearing New York City approval, citing someone close with the matter.

     Regions Financial Corp. climbed 3.1 percent after reporting first-quarter profit that exceeded analysts’ estimates by 1 cent.

     Ariad Pharmaceuticals Inc. added 4.6 percent after saying a study of its medicine brigatinib for some lung cancers showed one year survival rates of 100 percent.

     Fannie Mae fell 14 percent, paring a weekly jump of 29 percent, while Freddie Mac dropped 12 percent, while posting a rally this week of 26 percent. The mortgage giants had a federal appellate review today. Fairholme Funds and Perry Capital LLC have challenged the lawfulness of the so-called “net worth sweep”.

 

Have a wonderful weekend everyone.

 

Be magnificent!

 

“Life’s most persistent and urgent question is, ‘What are you doing for others?” Martin Luther King, Jr.

 

As ever,

 

Karen

 “It is no use saying, ‘We are doing our best.’ You have got to succeed in doing what is necessary.” Winston Churchill

 

 

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