Month: April 2016

Dear Friends,

Tangents:

On April 14, 1865, President Lincoln was shot and mortally wounded by John Wilkes Booth while attending the comedy “Our American Cousin” at Ford’s Theater in Washington, D.C. He died the next day.

Number of the Day

73

The Golden State Warriors beat the Memphis Grizzlies in the last game of the NBA’s regular season for their 73rd win, surpassing the previous record set by the Bulls and establishing themselves as maybe the best NBA team ever.

PHOTOS OF THE DAY

Swiss land art artist Daniel Dunkel builds a cairn on the shore of Lake Leman in Lutry, near Lausanne, Switzerland, Thursday. Denis Balibouse/Reuters

British Parkour expert Tim Shieff performs a hand-stand in front of the House of Commons, as he launches Jungle Book inspired Parkour masterclasses on London’s Southbank, Thursday. Joel Ryan/Invision/AP

Market Closes for April 14^th, 2016

Market Index	Close	Change
Dow Jones	17926.43	+18.15   +0.10%
S&P 500	2081.83	-0.59   -0.03%
NASDAQ	4945.887	-1.534   -0.03%
TSX	13656.02	-15.33
		-0.11%

International Markets

Market Index	Close	Change
NIKKEI	16911.05	+529.83
		+3.23%
HANG SENG	21337.81	+179.10
		+0.85%
SENSEX	25626.75	+481.16
		+1.91%
FTSE 100	6365.10	+2.21
		+0.03%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.294	1.250
CND. 30 Year Bond	1.997	1.973
U.S.    10 Year Bond	1.7919	1.7639
U.S. 30 Year Bond	2.6035	2.5837

Currencies

BOC Close	Today	Previous
Canadian $	0.77855	0.78035
US $	1.28444	1.28147
Euro Rate 1 Euro=		Inverse
Canadian $	1.44673	0.69121
US $	1.12635	0.88776

Commodities

Gold	Close	Previous
London Gold Fix	1233.85	1245.75
Oil	Close	Previous
WTI Crude Future	41.50	41.76

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks ended little changed, halting a four-day rally, as the Standard & Poor’s/TSX Composite Index traded near a five-month high.

     The benchmark equity gauge fell less than 0.1 percent to 13,668.29 at 4 p.m. in Toronto, following a four-day winning streak that pushed the index 3.1 percent higher. The S&P/TSX remains one of the best-performing developed markets in the world this year with a 5.1 percent gain.

     West Texas Intermediate crude slipped ahead of a key meeting this weekend between OPEC producers on a potential output freeze. The International Energy Agency 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.

     The resource-dominant S&P/TSX remains tied to commodities prices, as a rebound in resource producers through the first quarter has fueled a 15 percent resurgence 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.

     Gold producers sank 2.7 percent as spot prices of the precious metal retreated a third day. Demand for bullion as a haven has slowed as stock markets rallied and growth indicators suggested China’s economy was stabilizing. Raw-material producers remain the top-performing industry in Canada this year, rallying 24 percent. 

     Fertilizer producer Agrium Inc. tumbled 5.3 percent to a 2014 low after Bank of Nova Scotia analyst Ben Isaacson dropped Agrium from his focus list due to its valuation. Isaacson now has a sector outperform rating for Agrium, or buy, albeit with less conviction due to lower nitrogen prices and a weaker agricultural outlook beyond 2016, according to a note.

     Shaw Communications Inc. fell 3.2 percent, the most since January, after reporting second-quarter earnings. Barclays Capital Analyst Phillip Huang said in a note Shaw will need years of investments to grow its recently acquired Wind Mobile asset, adding to a long list of investment priorities that will constrain the company’s ability to raise its dividend in the foreseeable future.

US

By Dani Burger

     (Bloomberg) — U.S. stocks ended little changed on Thursday, with the Standard & Poor’s 500 Index near a four-month high and the Dow Jones Industrial Average edging to the highest since July, as investors assessed earnings releases and data showing the labor market is improving with little pickup in inflation.

     Banks advanced, with Bank of America Corp. advancing a fifth day after saying it sees more room for cost cuts. Airline operators jumped along with Delta Air Lines Inc., which posted quarterly earnings that beat projections. Technology shares retreated as Seagate Technology Plc plummeted 20 percent after reporting preliminary revenue that trailed estimates.

     The S&P 500 added less than 0.1 percent to 2,082.78 at 4 p.m. in New York, after reaching the highest level since Dec. 4 yesterday. Financial shares and commodity producers have led the benchmark gauge to a 1.7 percent advance so far this week, after the measure faltered last week amid skepticism central banks’ efforts to shore up growth will fail to be effective. The Dow Jones Industrial Average increased by 18 points to 17,926.43 on Thursday, the highest since July 20. The index is 2.1 percent below its record.

     While the rally that lifted the S&P 500 since February is regaining momentum, skepticism still prevails, with valuations far above their five-year average and the seven-year bull market weeks away from becoming the second-longest in history. Some investors also attribute the rebound to short squeezes, with a Goldman Sachs Group Inc. gauge of the 50 most-shorted stocks posting its biggest two-day jump in almost two months.

     “It’s time for the market to earn the rally we’ve had over the last seven or six weeks, in terms of an actual earnings picture,” said Michael Mussio, managing director of FBB Capital Partners, which oversees $850 million.“We’re back to waiting and seeing. The market definitely seems like it’s priced in for some type of upside surprise, but we’ll have to see.”

     Analysts have slashed profit estimates for S&P 500 members this year, now projecting net income fell 10 percent in the first quarter. Investors are also tracking economic releases. Stock futures climbed in pre-market trading after data showed initial jobless claims fell to match the lowest level since 1973 and the cost of living excluding food and fuel rose less than forecast in March.

     Futures also extended gains after Federal Reserve Bank of Atlanta President Dennis Lockhart said today on Bloomberg Television that inflation is still lagging the central bank’s target and a patient approach to policy “makes sense.” After comments by Fed Reserve Chair Janet Yellen reaffirmed officials won’t rush to raise interest rates, traders are pricing in zero possibility of a raise at the end of April, with December now the first month with even odds of higher borrowing costs.

     Semiconductors and technology hardware companies were the worst performing groups. Western Digital Corp., a rival of Seagate, sank 6.7 percent, while chipmaker Micron Technology Inc. slid 4.4 percent after saying it plans to sell $1 billion in notes. Intel Corp. the world’s biggest semiconductor maker, dropped 1 percent.

     Delta, American Airlines Group Inc., and United Continental Holdings Inc. added more than 0.9 percent to make up some of the biggest winners in the S&P 500 today.

     Valeant Pharmaceuticals International Inc. wiped out losses briefly in late afternoon trading, after Legg Mason Inc.’s Bill Miller said at an investor meeting Thursday that he’s buying shares, betting that the price of the embattled drugmaker could double. Shares ended the day 2.2 percent lower.

     Chipotle Mexican Grill Inc. climbed 2.6 percent after JPMorgan Chase & Co. raised its rating on the stock to the equivalent of a buy.

     SunEdison Inc. soared 58 percent after saying it found no misstatements in its financial statements.

 

Have a wonderful evening everyone.

 

Be magnificent!

Though they may take various roads, all are on the way.

Swami Vivekananda

As ever,

 

Carolann

 

The megalomaniac differs from the narcissist by the fact that he wishes to be

powerful rather than charming, and seeks to be feared rather than loved.  To

this type belong many lunatics and most of the great men of history.

                                                     -Bertrand Russell, 1872-1970

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Thomas Jefferson, 3^rd US President born on this day in 1743.
1962: Silent Spring by Rachel Carson is published.

Came across the following and liked it.

 

Nothing softeneth the Arrogance of our nature like a

 

Mixture of some Frailities.  It is by them  that we are best told,

 

That we must not strike too hard upon others

 

Because we ourselves do so often deserve blows.  They

 

Pull our Rage by the sleeve and whisper

 

Gentleness to us in our censures.

 

                                                                   Edward Frederick Lindley Wood, 1^st Earl of Halifax, 1881-1959

PHOTOS OF THE DAY

Young monks take a break from their studies at Changangkha Lhakhang temple in Thimphu, Bhutan, Wednesday. Cathal McNaughton/Reuters

Munin, an intelligent marine robot, explores the Loch Ness in Scotland, UK on Wednesday. Russell Cheyne/Reuters

Market Closes for April 13^th, 2016

Market Index	Close	Change
Dow Jones	17908.28	+187.03   +1.06%
S&P 500	2082.42	+20.70   +1.00%
NASDAQ	4947.422	+75.331   +1.55%
TSX	13671.35	+89.93
		+0.66%

International Markets

Market Index	Close	Change
NIKKEI	16381.22	+452.43
		+2.84%
HANG SENG	21158.71	+654.27
		+3.19%
SENSEX	25626.75	+481.16
		+1.91%
FTSE 100	6362.89	+120.50
		+1.93%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.250	1.291
CND. 30 Year Bond	1.973	1.990
U.S.    10 Year Bond	1.7639	1.7726
U.S. 30 Year Bond	2.5837	2.5943

Currencies

BOC Close	Today	Previous
Canadian $	0.78035	0.78335
US $	1.28147	1.27656
Euro Rate 1 Euro=		Inverse
Canadian $	1.44503	0.69203
US $	1.12763	0.88681

Commodities

Gold	Close	Previous
London Gold Fix	1245.75	1254.60
Oil	Close	Previous
WTI Crude Future	41.76	42.17

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a fourth day, rallying to the highest since November, as the nation’s largest lenders advanced after the Bank of Canada backed away from cutting interest rates amid signs fiscal policy is boosting growth prospects.

      The Standard & Poor’s/TSX Composite Index rose 0.7 percent to 13,671.35 at 4 p.m. in Toronto, extending a four-day winning streak to 3.1 percent. The S&P/TSX remains one of the best- performing developed markets in the world this year with a 5.1 percent gain.

     The Bank of Canada kept its key interest rate at 0.5 percent, where it’s been since cuts in January and July, in a decision released Wednesday from Ottawa. Gross domestic product will grow 1.7 percent this year instead of the 1.4 percent the central bank expected in January. Faster growth allows Governor Stephen Poloz to back away from his suggestion in January he was inclined to cut rates again.

     Financial services stocks added 1.1 percent, as Bank of Nova Scotia and Royal Bank of Canada added at least 1.4 percent. Eight of 10 industries in the S&P/TSX advanced on trading volume 4 percent less than the 30-day average.

     The resource-dominant S&P/TSX remains tied to commodities prices, as crude and gold prices have found some footing in the second quarter after stumbling at the beginning of April.

     Raw-material producers have been the top-performing industry in Canada this year, rallying 28 percent. Gold prices have soared 17 percent as investors scaled back projections for U.S. rate increases. The Canadian benchmark now trades at 21.7 times earnings, about 15 percent higher than the 18.9 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     HudBay Minerals Inc. and Labrador Iron Ore Royalty Corp. added at least 2.4 percent as base metals rose with iron ore above $60 a metric ton. China’s exports jumped the most in a year while declines in imports narrowed, adding to evidence the world’s second-largest economy is stabilizing. China is also Canada’s second-biggest trading partner after the U.S.

     Valeant Pharmaceuticals International Inc. rose 3.9 percent, reversing an earlier loss, as the drugmaker’s outgoing Chief Executive Officer Michael Pearson has now agreed to comply with a congressional subpoena to give a deposition before a Senate committee investigating drug pricing, after previously refusing to do so.

     The drugmaker earlier said it will have four fewer days to file its financials before lenders can demand loan repayment after the company received a default notice from some of its bondholders.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks extended gains a second day to reach the highest in four months, buoyed by improving Chinese trade data and better-than-expected results from JPMorgan Chase & Co., the biggest U.S. lender by assets.

     JPMorgan advanced 4.2 percent after reporting first-quarter profit was boosted by pay cuts and trading revenue that declined less than most analysts predicted. Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., scheduled to release results later this week, climbed at least 2.6 percent. Companies that are popular targets by short sellers rallied today, with a Goldman Sachs Group Inc. gauge of the 50 most shorted stocks posting the biggest increase since March 2.

     The Standard & Poor’s 500 Index rose 1 percent to 2,082.42 at 4 p.m. in New York, the highest since Dec. 4. Volume on U.S. exchanges was 8.1 percent higher than the 30-day average. All but five stocks in the 30-member Dow Jones Industrial Average increased, as the measure climbed 1.1 percent to 17,908.28 today. Futures contracts in pre-market trading held onto gains after releases showed U.S. retail sales and wholesale prices unexpectedly slumped last month, stoking speculation the Federal Reserve may slow the pace of further rate increases.

     “While U.S. numbers were a little weak, it’s a strong day overseas and China data was much better than expected,” Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC, said by phone. “While JPMorgan had a tough quarter, they still beat estimates. If earnings come in better than expected — with expectations so low — if we have even a decent beat, you may see us break out.”

     S&P 500 analysts have been projecting first-quarter profits by companies in the benchmark shrank 10 percent in the first quarter, with bank earnings contracting by 20 percent. That’s fueled concern on the outlook for stocks, with valuations far above their five-year average and the seven-year bull market weeks away from becoming the second-longest in history.

     A report showed China’s exports jumped by the most in a year in March and declines in imports narrowed, helping ease worries about a slowdown in the world’s second-largest economy. U.S. stocks are rebounding a second day, as crude pushed past $42 a barrel yesterday, lifting energy producers to their best one-day gain in almost two months.

     Banks, the worst-performing group so far in 2016, led gains with all 17 stocks in the S&P 500 index rallying. Among lenders that advanced today were People’s United Financial Inc. and Zions Bancorporation, which have short interest out of shares outstanding at 16 percent and 6 percent, respectively, data compiled by Markit Ltd. show.

     Carmakers also advanced. Harley-Davidson Inc. added 4.3 percent after UBS AG said the company’s retail sales in March likely jumped 10 percent because of warm weather. Bearish bets on the motorcycle maker is at 15 percent. Delphi Automotive Plc increased 5.6 percent after announcing a new buyback program and winning a long-running dispute with the U.S. Internal Revenue Service over whether the parts maker should be allowed to call itself British for tax purposes.

     Activision Blizzard Inc. climbed 5 percent after Stifel Nicolaus & Co. raised its price target ton the company to $40 a share from $35, saying its new game “Overwatch” could lead to a record year. The new price forecast is 19 percent higher than the stock’s close yesterday.

     CSX Corp. rose 4.2 percent after the rail transportation company posted quarterly profit in line with analysts’ estimates, as cost cuts helped make up for a drop in coal and oil carloads.

 

Have a wonderful evening everyone.

 

Be magnificent!

Our contribution

to the progress of the world must, therefore,

consist in setting our own house in order.

Mahatma Gandhi

As ever,

 

Carolann

 

We hold these truths to be self-evident: that all men are created equal;

that they are endowed by their Creator with certain unalienable rights;

that among these are life, liberty and the pursuit of happiness.

                                                       -Thomas Jefferson, 1743-1826

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

On April 12, 1945, Franklin D. Roosevelt, the 32nd president of the United States, died of a cerebral hemorrhage in Warm Springs, Ga., at age 63. Vice President Harry S Truman became president.

1980 – Terry Fox starts ‘Marathon of Hope’ for Cancer Society.

1967 – House of Commons chooses ‘O Canada’ as national anthem.

           SPRING

How fair the flowers unaware
That do not know what beauty is!
Fair, without knowing they are fair,
With poets and gazelles they share
  Another world than this.

The can but die, and not betray
As friends or love betray the heart.
They can but live their pretty day
And do no worse than simply play
  Their brief sufficient part.

They cannot break the heart, as friend
Or love may split our trust for ever.
We never asked them to pretend:
Death is a clean sufficient end
  For flower, friend, or lover.

            -V. Sackville-West

PHOTOS OF THE DAY

Hindu devotees perform a ritual balancing fire pots on head and hands as part of on Sitala Puja, dedicated to the Hindu goddess of pox, in Kolkata, India, Tuesday. Devotees participate to various rituals during this event to make a wish for the well-being of their family. Bikas Das/AP

Tourists float in the Dead Sea, Israel, Tuesday. Oded Balilty/AP

Market Closes for April 12^th, 2016

Market Index	Close	Change
Dow Jones	17721.25	+164.84   +0.94%
S&P 500	2061.72	+19.73   +0.97%
NASDAQ	4872.090	+38.690   +0.80%
TSX	13581.42	+158.66
		+1.18%

International Markets

Market Index	Close	Change
NIKKEI	15928.79	+177.66
		+1.13%
HANG SENG	20504.44	+63.63
		+0.31%
SENSEX	25145.59	+123.43
		+0.49%
FTSE 100	6242.39	+42.27
		+0.68%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.291	1.241
CND. 30 Year Bond	1.990	1.955
U.S.    10 Year Bond	1.7726	1.7254
U.S. 30 Year Bond	2.5943	2.5616

Currencies

BOC Close	Today	Previous
Canadian $	0.78335	0.77534
US $	1.27656	1.28976
Euro Rate 1 Euro=		Inverse
Canadian $	1.45348	0.68800
US $	1.13859	0.87828

Commodities

Gold	Close	Previous
London Gold Fix	1254.60	1254.75
Oil	Close	Previous
WTI Crude Future	42.17	40.36

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks posted its biggest three-day rally in a month, as crude topped $42 a barrel and Bombardier Inc. climbed on more orders for its C Series jet aircraft.

     The Standard & Poor’s/TSX Composite Index rose 1.2 percent to 13,581.42 at 4 p.m. in Toronto, extending a three-day winning streak to 2.4 percent. The S&P/TSX remains one of the best- performing developed markets in the world this year with a 4.4 percent gain.

     Canadian equities advanced with commodities prices on Tuesday, as crude jumped after Interfax reported Russia and Saudi Arabia reached a consensus on freezing oil output. Gold held near a three-week high, buoyed by a falling dollar that’s trading near a June 2015 low.

     The resource-dominant S&P/TSX remains tied to commodities prices, as crude and gold prices have found some footing in the second quarter after stumbling at the beginning of April. Energy producers added 3.5 percent today, the biggest gain in the S&P/TSX as eight of 10 industries advanced on trading volume 10 percent higher than the one-month average. Encana Corp. surged 9.3 percent while Cenovus Energy Inc. and Crescent Point Energy Corp. rallied more than 7.4 percent.

     Enerplus Corp. jumped 9.7 percent to the highest close this year, after the oil and gas producer sold non-core assets in Northwest Alberta Monday worth about C$95.5 million.

     Raw-material producers have been the top-performing industry in Canada this year, rallying 29 percent. Gold prices have soared 18 percent as investors scaled back projections for U.S. rate increases. The Canadian benchmark now trades at 21.6 times earnings, about 15 percent higher than the 18.8 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Bombardier added 5.5 percent, after three straight days of no change. The struggling aerospace manufacturer said Latvia’s flag carrier airBaltic converted its remaining seven option aircraft to a firm order. This latest order brings the Latvian carrier’s total firm orders to 20 CS300 aircraft.

     The C Series is “critical” to the survival of Bombardier’s aircraft business, George Ferguson, an industry analyst with Bloomberg Intelligence, said in a note. Ferguson estimates Bombardier needs more than 1,000 C Series orders for success.

US

By Dani Burger

     (Bloomberg) — U.S. stocks rose to a one-week high as crude pushed past $42 a barrel to overshadow a tepid start to the first-quarter earnings season.

     Energy producers surged 2.7 percent as crude climbed to a four-month high after Saudi Arabia and Russia were seen agreeing on whether to freeze oil production. Chesapeake Energy Corp. surged the most on record after pledging assets to maintain access to financing. Alcoa Inc. slid 3.4 percent after the largest U.S. aluminum producer cut its forecast for global demand. Juniper Networks Inc. plunged 7.5 percent after sales missed forecasts, dragging the semiconductor industry lower.

     The S&P 500 added 1 percent to 2,061.74 at 4 p.m. in New York. The index has alternated gains and losses for four days and is now little changed for the month of April. The Dow Jones Industrial Average climbed 165.05 points, or 0.9 percent, to 17,721.46. as well as continued oil price strength and weakness in the dollar.”

     West Texas Intermediate rose 4.5 percent in New York. Saudi Arabia and Russia have reached a consensus on an output freeze, Interfax said Tuesday, citing an unidentified “informed diplomatic source” in Doha.

     The rally in crude is overshadowing the start of earnings season that is forecast to be the worst since the financial crisis, with analysts projecting first-quarter profits shrank 10 percent — including a 20 percent decline for banks — compared with earlier estimates for flat growth.

     “We don’t have strong revenue growth — that’s what we heard from Alcoa,” said Spika. “Until we have that, particularly with wage pressure, it’s hard to justify a move higher in the market. Investors are whistling past the graveyard and not focusing on the key issue. It’s a show me market, and we need earnings to push it forward from here.”

     After a tumultuous start to the year that saw the S&P 500 tumble as much as 11 percent, U.S. equities rebounded 13 percent in the following six weeks. They are now little changed in the past two weeks after falling the most since February last week.

     The Chicago Board Options Exchange Volatility Index slumped 7.9 percent to 14.97 on Tuesday, the lowest level in a week.

     All 10 main S&P 500 groups advanced Tuesday, with energy and financial shares leading the way. JPMorgan Chase & Co. and Citigroup Inc. are among companies that report corporate results this week.

     Among other stocks active on corporate news, Fastenal Co. lost 3.1 percent after also posting sales and earnings that missed the average analyst estimate.
 

Have a wonderful evening everyone.

 

Be magnificent!

 

Every day we see or read of appalling things happening in the world as the result of violence in man.

You may say, “I can’t do anything about it,” or “How can I influence the world?”

I think you can tremendously influence the world if you yourself are not violent,

if you lead actually every day a peaceful life – a life which is not competitive, ambitious, envious –

a life which does not create enmity.

Small fires can become ablaze.

Krishnamurti

As ever,

 

Carolann

The greatest pleasure in life is doing what people

say you cannot do.

                        -Walter Bagehot, 1826-1877                     

 

 

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:

April 11, 1945: liberation of Buchenwald

Poem: An elegy is, as Edward Hirsch writes, “a poem of mortal loss and consolation.”  This elegy first records the stray, important thoughts that come when the poet listens to Bach.  Only at the end do we come upon the particular loss, and the consolation of possibility.

Elegy

 -by Ed Smallfield

                                                        Bach.

                                                 A cello

                                                       swells

                                            in the dark.

                                                    Talk

                                                 & spells,

                    those stories the body tells.

                                                        A walk

    between raindrops.  The notes empty.  The notes fill.

           The accidents of somebody’s biography.

A hand        explores        whatever        is too dark to see.

                                                          April

ends & the cellist is dead.                   An orange window.

                                                & I am coming to see you.

 

                                            -NY Times, April 10, 2016

PHOTOS OF THE DAY

Catherine, Duchess of Cambridge is watched by former Indian cricketer Dilip Vengsarkar as she and Britain’s Prince William play a game of cricket with Indian children, who are beneficiaries of NGOs, at the Oval Maidan in Mumbai, Sunday. Rafiq Maqbool/AP

Canada’s Prime Minister Justin Trudeau sits with members of the Sikh community and government caucus during a Vaisakhi celebration on Parliament Hill in Ottawa, Monday. Adrian Wyld/The Canadian Press/AP

Market Closes for April 11^th, 2016

Market Index	Close	Change
Dow Jones	17556.41	-20.55   -0.12%
S&P 500	2041.99	-5.61   -0.27%
NASDAQ	4833.398	-17.291   -0.36%
TSX	13422.76	+26.03
		+0.19%

International Markets

Market Index	Close	Change
NIKKEI	15751.13	-70.39
		-0.44%
HANG SENG	20440.81	+70.41
		+0.35%
SENSEX	25022.16	+348.32
		+1.41%
FTSE 100	6200.12	-4.29
		-0.07%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.241	1.232
CND. 30 Year Bond	1.955	1.953
U.S.    10 Year Bond	1.7254	1.7184
U.S. 30 Year Bond	2.5616	2.5525

Currencies

BOC Close	Today	Previous
Canadian $	0.77534	0.76963
US $	1.28976	1.29933
Euro Rate 1 Euro=		Inverse
Canadian $	1.47117	0.67973
US $	1.14064	0.87670

Commodities

Gold	Close	Previous
London Gold Fix	1254.75	1239.50
Oil	Close	Previous
WTI Crude Future	40.36	39.72

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day, giving back some gains in the final hour of trading, as commodities rallied amid signs of a pick-up in industrial demand in China. Valeant Pharmaceuticals International Inc. extended losses to drag health-care companies lower.

     The Standard & Poor’s/TSX Composite Index rose 0.2 percent to 13,422.76 at 4 p.m. in Toronto, paring an earlier advance of as much as 1 percent. The Canadian benchmark has gained 1.2 percent in two days. The S&P/TSX remains one of the best- performing developed markets in the world this year with a 3.2 percent gain.

     Canadian equities advanced with commodities prices today, as crude traded above $40 a barrel in New York while spot gold advanced to the highest in three weeks. Copper rebounded as the dollar declined a second day. China’s producer prices increased 0.5 percent in March from February, the first gain in more than two years, data showed Monday.

     The resource-dominant S&P/TSX remains tied to commodities prices, as a first-quarter rally fueled by a resurgence in crude and gold prices has stalled to start the second. The Canadian benchmark now trades at 21.3 times earnings, about 15 percent higher than the 18.6 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Canadian Pacific Railway Ltd. climbed 2.6 percent to the highest level since Dec. 4, after the railroad operator ended efforts to buy U.S. competitor Norfolk Southern Corp. and the takeover plan backed by investor Bill Ackman drew opposition from customers and U.S. government officials. Norfolk Southern rejected three offers, including one in December that valued the company at $27 billion.

     Whitecap Resources Inc. climbed 8.6 percent to a three- month high, after the oil and natural gas explorer lowered its monthly dividend and doubled its 2016 capital spending guidance to C$148 million.

     Valeant tumbled 7.8 percent for a second day of losses, as declines accelerated through the day. The drugmaker’s board has asked outgoing Chief Executive Officer Michael Pearson to cooperate with a subpoena to appear before a U.S. Senate committee that’s investigating drug pricing. The committee said Friday it intended to start contempt proceedings against Pearson, after he failed to appear at a deposition that week.

     Shares of Valeant have rebounded from a five-year low after winning the support of lenders to waive a default and ease some restrictions on its loan terms last week. Valeant shares remain down almost 90 percent from an August record.

US

By Dani Burger

     (Bloomberg) — U.S. stocks fell, erasing gains in late afternoon trading, as investors braced for what is forecast to be the worst earnings season since the financial crisis.

     The Standard & Poor’s 500 Index fell 0.3 percent to 2,041.99 at 4 p.m. in New York, wiping out an advance of as much as 0.8 percent, after the steepest decline last week in two months. Financial shares, the worst performing group in the S&P 500 in 2016, gained, with JPMorgan Chase & Co. and Goldman Sachs Group Inc. climbing. Signs of a pick-up in Chinese industrial demand pushed raw-material producers higher, while health-care and consumer-staples companies weighed on the index.

     “The market lacks enough conviction to move stocks in any one direction for any one amount of time long enough for investors to sink their teeth into and rack up performance,” John Stoltzfus, the New York-based chief market strategist at Oppenheimer & Co., said by phone. “There is an increased amount of skepticism and concern, mostly around earnings season. It boils down to a market that has to climb a wall of worry and has to earn its gains.”

     Alcoa Inc. unofficially kicked off the reporting season today, reporting after the close first-quarter profit of 7 cents a share, which exceeded analysts’ estimates by 5 cents. Sales were $4.95 billion, falling short of the $5.2 billion that was projected. Shares retreated 0.4 percent in late trading. 

     As investors await fresh cues from corporate America, analysts are projecting first-quarter profits will contract 10 percent —  compared with calls for flat earnings growth at the start of the year — including a 20 percent drop for banks. Still, for the first time in eight months, the pace at which they are cutting their estimates is slowing.

     While S&P 500 companies have historically exceeded earnings forecasts, sales have fallen short of projections in the past two periods. JPMorgan Chase, Bank of America Corp. and Citigroup Inc. are all scheduled to release results this week.

     Following a tumultuous start to the year in which the S&P 500 tumble as much as 11 percent, U.S. equities are now almost unchanged on optimism that central bank support will be enough to support growth. Still, reasons for additional gains have grown thin, with valuations far above their five-year average and the seven-year bull market weeks away from becoming the second-longest in history. 

     After comments by Federal Reserve Chair Janet Yellen and minutes from the March meeting this month reaffirmed officials won’t rush to raise interest rates, traders are pricing in zero chances of a raise in April. The first month with at least even odds for a boost has been pushed to February 2017.

     Among stocks moving on corporate news, Chesapeake Energy Corp. jumped 20 percent after saying it has amended a $4 billion secured revolving credit facility agreement with its bank syndicate group that matures in 2019.

     Yahoo! Inc. added 1.1 percent after a person familiar with the matter said the publisher of Britain’s Daily Mail newspaper is interested in buying the company’s media and news properties. Daily Mail has spoken with a half dozen U.S.-based private- equity firms and a bid would only be made in conjunction with a partner, according to the report.

     Biotechnology companies slumped, with the Nasdaq Biotechnology Index dropping a third day. Endo International Plc sank 8 percent, while Insys Therapeutics Inc. plunged 19 percent. The latter posted preliminary revenue from its Subsys drug that trailed estimates, saying scrutiny around opioid addiction may have caused reluctance by health-care providers in writing prescriptions.

     Hertz Global Holdings Inc., a popular hedge-fund holding, slid 11 percent after saying U.S. car rental revenue in 2016 will be flat to down by 1.5 percent, after previously projecting an increase of at least 1.5 percent. Avis Budget Group Inc. also declined, losing 8.1 percent.

     Under Armour Inc.’s Class A shares sank 5.5 percent after Morgan Stanley cut its price target on the retailer to $32 a share, or 27 percent below the stock’s close on Friday. The bank said revenue growth, especially in women’s, has slowed, which will lead to a future quarterly sales miss.

     National Oilwell Varco Inc. tumbled 6.2 percent after reporting first-quarter sales dropped by about 20 percent to $2.16 billion from the prior quarter. The preliminary figure also fell short of analysts’ estimates, which called for revenue of $2.38 billion.

 

Have a wonderful evening everyone.

 

Be magnificent!

When there is space between you and the object you are observing

you well know there is no love, and without love, however hard you try to reform the world

or bring about a new social order or however much you talk about improvements,

you will only create agony.

So it is up to you.

Krishnamurti

As ever,

 

Carolann

 

Leaders inspire themselves and

others to do, be, give and become

more than they ever thought

possible.

              -Tony Robbins, b. 1960

 

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 “point”, Darwin taught us, is to pass on our genes.  This is as true for humans as for any other organism – chimpanzees, for example, or planaria.  The formula worked for life for the 3.5 billion years beforeHomo sapiens came along, and it isn’t likely to change now, just because people tend to find it unsatisfying,

  Most of us would, of course, prefer to believe our lives have a higher purpose than those of E. coli.  The very capacity to aspire – to truth and beauty, fame and fortune, intimacy and immortality – is one of the characteristics that sets modern humans apart from other species.  But the mistake is to project the structures of our minds onto the nature of existence, to demand that the world conform to the way we think about it.  “Endless forms most beautiful” evolved without us, and will continue to do so after we’re gone.

  Perhaps the wisest thing we could try to do is to make peace with pointlessness.  This is not so much a prescription for personal happiness as a petition on behalf of creation.  Right now, expressions of human purposefulness are transforming the planet – reshuffling the biosphere, altering the atmosphere, and changing the chemistry of the oceans.  We’ve ushered in a new geological age, the Anthropocene, which  is likely to be marked by the highest extinction rates since the asteroid impact that did in the dinosaurs.

  How might we pursue a less purposeful existence?  We could begin by trying to do less. This might seem like a negative goal, but it would actually be hugely consequential.  As it stands right now, humanity’s most lasting accomplishment will be our pruning (or hatcheting) of the tree of life: a sad legacy, and one we should do everything in our power to avoid.  The challenge to us as a species is to let other species pass on their genes – to allow them, too, to have a point. –Elizabeth Kolbert, Intelligent Life.

PHOTOS OF THE DAY

The SpaceX Falcon 9 rocket lifts off from launch complex 40 at the Kennedy Space Center in Cape Canaveral, Fla., Friday. The rocket will deliver almost 7,000 pounds of science research, crew supplies, and hardware to the International Space Station. John Raoux/AP

A NASA image shows the International Space Station as it flew over Madagascar, showing three of the five spacecraft docked to the station in this photo taken by the Expedition 47 Flight Engineer Tim Peake of ESA on April 6, 2016 and released on Friday. Tim Peake/ESA/NASA/Reuters

Flower petals rest on the surface of the Manzanares river during an event marking the International Roma Day in Madrid, Friday. Members of the Spain’s gypsy community threw flower petals into the river during a ceremony symbolizing the departure of their ancestors from India and their exodus across the world. Francisco Seco/AP

Market Closes for April 8^th, 2016

Market Index	Close	Change
Dow Jones	17576.96	+35.00   +0.20%
S&P 500	2045.27	+3.36   +0.16%
NASDAQ	4850.688	+2.322   +0.05%
TSX	13379.36	+112.92
		+0.85%

International Markets

Market Index	Close	Change
NIKKEI	15821.52	+71.68
		+0.46%
HANG SENG	20370.40	+104.35
		+0.51%
SENSEX	24673.84	-11.58
		-0.05%
FTSE 100	6204.41	+67.52
		+1.10%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.232	1.167
CND. 30 Year Bond	1.953	1.920
U.S.    10 Year Bond	1.7184	1.6906
U.S. 30 Year Bond	2.5525	2.5171

Currencies

BOC Close	Today	Previous
Canadian $	0.76963	0.76049
US $	1.29933	1.31499
Euro Rate 1 Euro=		Inverse
Canadian $	1.48101	0.67522
US $	1.13982	0.87733

Commodities

Gold	Close	Previous
London Gold Fix	1239.50	1242.10
Oil	Close	Previous
WTI Crude Future	39.72	37.26

Market Commentary:

Canada

By Anna-Louise Jackson

     (Bloomberg) — Canadian stocks rose the most in three weeks, as a rally in crude boosted energy producers and a surge in hiring stoked speculation the nation’s central bank will refrain from cutting interest rates further.

     The Standard & Poor’s/TSX Index rose 1 percent to 13,396.73 at 4 p.m. in Toronto as seven of the 10 main industries advanced. The benchmark still fell 0.3 percent for the week, as consumer discretionary and staples companies sank. The Canadian benchmark equity gauge trades at 21.3 times earnings, about 14 percent higher than the 18.6 times earnings valuation of the S&P 500, according to data compiled by Bloomberg.

     A report today showed Canadian employment rose faster than forecast in March, a big step in erasing the chance the Bank of Canada will cut rates in its April 13 interest-rate decision. Canadian companies joined global stocks in advancing with commodity prices to end a week that’s seen markets whipsaw and currency volatility approach the highest since 2011.

     Canada’s largest energy producers led Friday’s rally, adding 2.3 percent to the highest level this month, as all but one of 50 members gained. Enerplus Corp. surged 6.2 percent to the highest since December, while Whitecap Resources Inc. extended a four-day rally in which it gained 14 percent.

     Raw-material producers jumped 1.9 percent, rallying for a fourth straight day, as Yamana Gold Inc. jumped 8.4 percent to the highest since May. Shares of industrial and financial companies also rose.

     Health-care companies slumped 4.7 percent, dragged lower by a decline of 6.1 percent in Valeant Pharmaceuticals International Inc. shares. Consumer-discretionary stocks fell for the fifth time in six days, closing 0.7 percent lower on Friday and bringing month-to-date losses to 3.2 percent.

     Analyst downgrades sent at least two stocks lower, as Interfor Corp. tumbled 5.5 percent, the most in almost two months, and Badger Daylighting Ltd. fell 3.5 percent to the lowest level since November.

US

By Dani Burger

     (Bloomberg) — U.S. stocks edged higher, with the Standard & Poor’s 500 Index trimming the worst weekly slide in two months, as a surge in crude that boosted energy shares offset a slump in biotechnology shares.

     The S&P 500 climbed 0.2 percent to 2,047.63 at 4 p.m. in New York, remaining in a range it’s held since the Federal Reserve’s last policy meeting on March 16. The index rose as much as 0.9 percent Friday, and closed down 1.2 percent in the week, the most since Feb. 5. Equities have swung between gains and losses in the five days as investors search for clues on the strength of the American economy ahead of what is forecast to be the worst earnings season since the financial crisis.

     “You still have a lot of uncertainty surrounding earnings,” said Peter Jankovskis, who helps oversee $1.9 billion as co- chief investment officer of Lisle, Illinois-based OakBrook Investments. “There was definitely a risk off trade yesterday. People don’t want to jump in and take a big position either way in front of an earnings number that people expect to be down.” 

     The Dow Jones Industrial Average advanced 0.2 percent to 17,577.23. The Nasdaq Composite Index was little changed after erasing gains, dragged lower by biotech shares. The group fell 1.1 percent for a second day of losses following a 6 percent rally Wednesday.

     Energy shares led gains in the S&P 500 Friday with a 2 percent advance, as Chevron Corp. surged 1.6 percent. Crude rallied 6.1 percent to top $39.50 a barrel in New York. Gap Inc. shares fell 14 percent after the struggling apparel chain posted disappointing sales.

     Stocks have made little progress since snapping a five-week winning streak last month that erased losses from the worst-ever start to a year. The S&P 500 ended the week higher by 0.2 percent in the year. It has remained within 1 percent of the 2,050 level over the past three weeks, as sentiment lurched from optimism that central banks will support growth to worry that their efforts may not be enough to fend off a slowdown. The Chicago Board Options Exchange Volatility Index capped its biggest weekly advance since January.

     Still, more stocks are moving with the benchmark than before. Breadth as tracked by the relative size of swings in the S&P 500 Equal Weight Index has risen to highs not seen since 2012, a departure from last year, when a few big stocks held sway over the index.

     Investors are awaiting fresh cues from corporate America, with the earnings season unofficially kicking off when Alcoa Inc. reports first-quarter results on April 11. Analysts estimate profits fell 9.5 percent in the first quarter, compared with calls for flat earnings growth at the start of the year. That would mark the worst reporting period since the financial crisis.

     After comments by Federal Reserve Chair Janet Yellen and minutes from the March meeting this month reaffirmed officials won’t rush to raise interest rates, traders are pricing in zero chances of a raise in April. The first month with at least even odds for a boost has been pushed to February 2017 from December last week.

 

Have a wonderful weekend everyone.

 

Be magnificent!

As long as individuality survives, that is,

as long as you continue to see others as separate from you,

a feeling of hostility towards them cannot fail to prevail.

As ever,

 

Carolann

 

The stupid neither forgive nor forget; the naïve forgive and forget;

the wise forgive but do not forget.

                                            -Thomas Szasz, 1920-2012

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Birthday: April 7, 1915, Billie Holiday.

GOD BLESS THE CHILD
…Mama may have, papa may have
But God bless the child that’s got his own
That’s got his own…

www.cmgww.com/music/holiday.

On this day in 1994, civil war breaks out in Rwanda

Number of the Day

40%

More than 40% of Americans who borrowed from the government’s main student-loan program aren’t making payments or are behind on more than $200 billion owed, raising worries that millions of them may never repay.

Paul Simon is still feeling experimental after all these years.

The musician announced his 13^th studio album, “Stranger to Stranger” today. In a release, the 11-song set is described as “full of thrilling, imaginative textures,” with Simon utilizing instruments developed by 20^th-century composer Harry Partch, like a “cloud-chamber bowl” and a chromelodeon. Simon traveled to where Partch’s instruments are housed at Montclair State University, in Montclair, N.J. to help with the process.

Fans can get a flavor of Simon’s new sounds on the first single, “Wristband” …Other influences that seep into “Stranger to Stranger” include flamenco music and the sound of Italian EDM artist Clap! Clap!

“Sound is the theme of this album as much as it’s about the subjects of the individual songs. If people get that, I’ll be pleased,” Simon said in a statement. “The right song at the right time can live for generations. A beautiful sound, well, that’s forever.”

“Stranger to Stranger” is his first new studio album since 2011’s “So Beautiful or So What,” which hit No. 4 on the Billboard 200 in April 2011.

2016 is seemingly becoming an increasingly busy time for the 74-year-old songwriter. He recently contributed the theme song to Louis C.K.’s new TV show “Horace & Pete,” and will be starting a two-month tour starting on April 29 at the New Orleans Jazz and Heritage Festival.

“Stranger to Stranger” arrives June 3. –Mike Ayers, Wall Street Journal, April 7, 2016.

I’ll be seeing his concert in Vancouver on May 26^th – I’m a huge fan.

PHOTOS OF THE DAY

Cool temperatures and a beautiful sunrise made perfect conditions for early workouts, like this cyclists crossing the Jackson Hill bridge over Memorial Drive, Thursday, in Houston. Steve Gonzales/Houston Chronicle/AP

A Swiss guard stands guard at the Vatican on Thursday. Alessandro Di Meo/Reuters

Market Closes for April 7^th, 2016

Market Index	Close	Change
Dow Jones	17541.96	-174.09   -0.98%
S&P 500	2041.91	-24.75   -1.20%
NASDAQ	4848.367	-72.348   -1.47%
TSX	13266.44	-81.02
		-0.61%

International Markets

Market Index	Close	Change
NIKKEI	15749.84	+34.48
		+0.22%
HANG SENG	20266.05	+59.38
		+0.29%
SENSEX	24685.42	-215.21
		-0.86%
FTSE 100	6136.89	-24.74
		-0.40%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.167	1.204
CND. 30 Year Bond	1.920	1.961
U.S.    10 Year Bond	1.6906	1.7514
U.S. 30 Year Bond	2.5171	2.5783

Currencies

BOC Close	Today	Previous
Canadian $	0.76049	0.76379
US $	1.31499	1.30926
Euro Rate 1 Euro=		Inverse
Canadian $	1.49585	0.66852
US $	1.13754	0.87909

Commodities

Gold	Close	Previous
London Gold Fix	1242.10	1221.40
Oil	Close	Previous
WTI Crude Future	37.26	37.75

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell for the fifth time in six sessions, as energy producers declined to overshadow a resurgence by Valeant Pharmaceuticals International Inc.

     The Standard & Poor’s/TSX Composite Index lost 0.6 percent to 13,266.44 at 4 p.m. in Toronto. While the Canadian benchmark has lost 1.8 percent in the past six trading days, it is up 2 percent this year and remains one of the best-performing developed markets in the world.

     Stocks worldwide retreated Thursday on concern about growth. Federal Reserve officials highlighted persistent risks facing the global outlook at their March meeting, while International Monetary Fund Managing Director Christine Lagarde signaled the organization may lower its outlook for growth.

     A first-quarter rally in the S&P/TSX has lost momentum in the second, as volatility returned to commodities prices. The Canadian benchmark equity gauge now trades at 21.1 times earnings, about 14 percent higher than the 18.6 times earnings valuation of the S&P 500, according to data compiled by Bloomberg.

     West Texas Intermediate crude slipped 1.3 percent in New York amid speculation that an unexpected U.S. crude supply decline won’t be followed by additional drops. Ahead of a meeting of OPEC producers in Doha later this month to debate a production freeze, Saudi Arabia has said no agreement is possible without the participation of Iran while Kuwait said a deal can still be made.

     Energy producers and financial services stocks contributed the most to losses in the S&P/TSX, as six of 10 industries retreated. Trading volume was about 15 percent lower than the 30-day average. Gold producers rallied as the price of the metal jumped to a one-week high after Fed minutes Wednesday indicated caution on interest rate increases.

     Valeant added 4.3 percent for a third day of gains after winning the support of lenders to waive a default and ease some restrictions on its loan terms. Valeant now has until May 31 to file its annual report, and July 31 to file its first-quarter report. The drugmaker has rebounded from a five-year low, increasing 36 percent in the last three days after saying Tuesday a special “ad hoc” board committee found no additional accounting issues that would require more restatements.

     The drugmaker is also actively discussing the sale of its Bausch and Lomb unit, Fox Business News reported late Thursday, according to unidentified bankers.

US

By Oliver Renick

     (Bloomberg) — The burst of bullishness that lifted U.S. stocks on Wednesday evaporated, with the Standard & Poor’s 500 Index posting the steepest selloff in six weeks amid renewed skepticism over global growth.

     The Dow Jones Industrial Average dropped more than 230 points at its worst levels, while banks in the S&P 500 fell the most since February, pacing declines amid falling bond yields as investors sought havens. A measure of volatility had its biggest spike since January, with today’s selloff echoing action that started the year when lenders were also especially hard hit on flaring growth concerns.

     The S&P 500 fell 1.2 percent to 2,041.91 at 4 p.m. in New York, alternating for a third day between gains and losses of at least 1 percent. The Dow sank 174.09 points, or 1 percent, to 17,541.96. The Nasdaq Composite Index lost 1.5 percent, nearly reversing yesterday’s rally. About 7.2 billion shares traded hands on U.S. exchanges, 14 percent below the three-month average.

     “There’s a bit of a risk-off trade going on,” said Don Ellenberger, senior portfolio manager at Federated Investors which oversees $361 billion in assets. “It’s hard to define a clear trend right now without a whole lot going on, but if you look around the market, earnings is something everyone’s focused on. There’s so much negative sentiment in the market right now, you can see it when you look at the money that’s poured out of equity funds.”

     Stocks have made little progress since snapping a five-week winning streak last month that erased losses from the worst-ever start to a year. The S&P 500 has traded in a 35-point range since the Fed’s March 16 meeting, remaining within 1 percent of the 2,050 level over the past three weeks, as sentiment has lurched from optimism that central-bank policies will buttress global growth to worry their efforts may not be potent enough to fend off a slowdown.

     Bank of America Corp. and JPMorgan Chase & Co. dropped at least 2.5 percent as lenders sold off for the third time in four sessions. A rally in the 10-Year U.S. Treasury amid haven demand sent its yield toward the lowest since the equity market bottomed in February, supporting speculation low rates will weigh on bank profits. Verizon Communications Inc. lost 2.8 percent to weigh on the S&P 500, the steepest decline since August after Jefferies LLC downgraded the shares to hold from buy.

     The Chicago Board Options Exchange Volatility Index jumped 15 percent to 16.16, the biggest climb in three months. The measure of market turbulence known as the VIX closed last week at the lowest since August, and is now headed for the steepest five-day gain since January.

     A plunge in bank shares led a selloff that sent the S&P 500 down as much as 11 percent this year, before it erased its decline by the end of last month. After reaching the highest level since Dec. 29 last Friday, the rebound is losing steam, with the gauge starting this week with the biggest two-day loss in almost two months.

     “There’s a worry that what caused the selloff at the start of the year hasn’t entirely gone away,” said Jasper Lawler, a London-based market analyst at CMC Markets Plc. “The minutes were on balance more dovish than most were expecting, but there’s still a lot of concern about the global economy. Heading into earnings season, people are starting to think ahead with some of the bank earnings coming out next week, and it’s one of the biggest areas of concern.”

     Growth anxieties are returning after stocks rebounded yesterday on rekindled merger speculation in the drug industry and as energy producers surged with crude oil. Minutes from the Federal Reserve’s last meeting affirmed policy makers’ hesitation to raise interest rates as they assessed persistent risks in the global outlook, keeping them wary on the pace of future rate increases.

     Following the latest Fed minutes and Chair Janet Yellen’s reiteration that future rate increases will be gradual, traders are assigning zero percent chance of a raise in April. The first month with at least even odds for a boost has been pushed to February. Prior to last month’s meeting, traders saw a roughly 50 percent chance of higher borrowing costs as early as June.

     Attention is also shifting to corporate earnings, with Alcoa Inc. unofficially kicking off the reporting season on April 11. Analysts project profits fell 9.5 percent in the first quarter, the worst in more than six years.

     As policy makers monitor data for progress in the economy a report today showed fewer Americans filed for unemployment benefits last week, illustrating a healthy labor market that’s allowing workers to feel more secure in their job.

     Amid Thursday’s tumble, all of the S&P 500’s 10 main industries declined, with phone, financial, raw-material and technology companies losing at least 1.2 percent. Utilities were little changed.

     “This is picking up a little bit here when you combine tech with financials both down,” said Scott Wren, a senior equity strategist in St. Louis at Wells Fargo Investment Institute. “It’s been a big bounce off the bottom so you’d expect some consolidation. The rebound has been cyclicals all the way, but the interesting thing today is it’s a mix of cyclicals and defensive stocks at the bottom — the market’s not just leaning one way or the other.”

     Financial companies fell to a four-week low under the drag from banks. In the broader group, Charles Schwab Corp. and E*Trade Financial Corp. declined more than 4.7 percent, with Schwab sinking the most in nearly three months. Goldman Sachs Group Inc. fell 3.1 percent, sliding for a fourth day after last week completing its longest winning streak in almost five months.

     EBay Inc. reversed a 4.3 percent rally yesterday, dropping 5.2 percent as one of the biggest losers in technology and the benchmark index today. F5 Networks Inc. slumped 5.9 percent, the steepest since October, after OTR Global said sales trends appear to be worsening. Semiconductors fell the most in four weeks, with Intel Corp. and Texas Instruments Inc. down at least 1.6 percent.

     Verizon’s drop was the biggest weight on phone companies after the group reached a more than eight-year high on Monday. After rallying 24 percent from an August low, telecommunications shares capped their worst three days since January.

     Costco Wholesale Corp. led consumer staples lower, losing 3 percent after a measure of its March sales missed estimates. Drugstore chains CVS Health Corp. and Walgreens Boots Alliance Inc. fell at least 2.3 percent.

     The Nasdaq Biotechnology Index slipped 1.9 percent after yesterday jumping the most since 2011. Alexion Pharmaceuticals Inc. and Vertex Pharmaceuticals Inc. fell more than 5.4 percent. Relypsa Inc. soared 67 percent, the most ever, after Reuters reported the company is exploring a potential sale.

     Wynn Resorts Ltd. was the strongest performer in the S&P 500, rising almost 12 percent for the best climb in almost two months. The casino owner provided a stronger-than-expected outlook, and Telsey Advisory Group upgraded the shares to the equivalent of buy from hold.

 

Have a wonderful evening everyone.

 

Be magnificent!

It is not others who must change, but you.

Swami Prajnanpad

As ever,

 

Carolann

 

Interpretation is the revenge of the intellect upon art.

                                  -Susan Sontag, 1933-2004

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Notable & Quotable: Cicero on Growing Old

From a new translation by classicist Philip Freeman, “How to Grow Old” (Princeton University Press), an imagined dialogue involving the Roman philosopher Cato written by the orator and statesman Cicero (106-43 B.C):

Scipio: When Gaius Laelius and I are talking, Marcus Cato, we often admire your outstanding and perfect wisdom in general, but more particularly that growing old never seems a burden to you. This is quite different from the complaints of most older men, who claim that aging is a heavier load to bear than Mount Etna.

Cato: I think, my young friends, that you are admiring me for something that isn’t so difficult. Those who lack within themselves the means for a blessed and happy life will find any age painful. But for those who seek good things within themselves, nothing imposed on them by nature will seem troublesome. Growing older is a prime example of this. Everyone hopes to reach old age, but when it comes, most of us complain about it. People can be foolish and inconsistent.

They say that old age crept up on them much faster than they expected. But, first of all, who is to blame for such poor judgment? Does old age steal upon youth any faster than youth does on childhood? Would growing older really be less of a burden to them if they were approaching eight hundred rather than eighty? If old people are foolish, nothing can console them for time slipping away, no matter how long they live.

So if you compliment me on being wise—and I wish I were worthy of that estimate and my name—in this way alone do I deserve it: I follow nature as the best guide and obey her like a god. Since she has carefully planned the other parts of the drama of life, it’s unlikely that she would be a bad playwright and neglect the final act. And this last act must take place, as surely as the fruits of trees and the earth must someday wither and fall. But a wise person knows this and accepts it with grace. Fighting against nature is as pointless as the battles of the giants against the gods. –from WSJ.

PHOTOS OF THE DAY

A Palestinian girl collects anemone coronaria flowers in a field at the West Bank village of Beit Dajan near Nablus, Tuesday. Abed Omar Qusini/Reuters

A bumblebee arrives at a cherry tree blossom in Erfurt, central Germany, Tuesday. Weather forecasts predict changeable weather for Germany in the next few days. Jens Meyer/AP

Market Closes for April 5^th, 2016

Market Index	Close	Change
Dow Jones	17603.32	-133.68   -0.75%
S&P 500	2045.17	-20.96   -1.01%
NASDAQ	4843.934	-47.862   -0.98%
TSX	13304.66	-31.49
		-0.24%

International Markets

Market Index	Close	Change
NIKKEI	15732.82	-390.45
		-2.42%
HANG SENG	20177.00	-321.92
		-1.57%
SENSEX	24883.59	-516.06
		-2.03%
FTSE 100	6091.23	-73.49
		-1.19%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.165	1.230
CND. 30 Year Bond	1.934	1.994
U.S.    10 Year Bond	1.7183	1.7653
U.S. 30 Year Bond	2.5427	2.5958

Currencies

BOC Close	Today	Previous
Canadian $	0.76112	0.76478
US $	1.31386	1.30757
Euro Rate 1 Euro=		Inverse
Canadian $	1.49594	0.66848
US $	1.13859	0.87830

Commodities

Gold	Close	Previous
London Gold Fix	1231.25	1219.75
Oil	Close	Previous
WTI Crude Future	35.89	35.70

Market Commentary:

April is 3^rd Best Month for S & P, 4^th Best for NASDAQ, Since 1971.

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks slipped a fourth day, the longest losing streak in almost two months, as crude traded near a one-month low and data showed exports posted their biggest fall since the recession.

     The Standard & Poor’s/TSX Composite Index fell 0.2 percent to 13,304.66 at 4 p.m. in Toronto, extending the longest stretch of declines since February 11. While the Canadian benchmark equity gauge has lost 1.5 percent in that time, it’s still up 2.3 percent this year and remains one of the best-performing developed markets in the world. Trading volume was 32 percent lower than the 30-day average.

     Canadian exports in February fell 5.4 percent, the biggest drop since May 2009 after rising to a record in January. Canada’s trade deficit widened to twice what economists forecast. Non-energy exports fell 4.2 percent, a blow to the Bank of Canada’s narrative that those industries will drive the country’s economic recovery in coming years.

     The S&P/TSX has stumbled out of the gates in the second quarter amid a retreat in commodities, especially crude, in a reversal from the first quarter’s resource-fueled rally. The broader S&P/TSX’s valuation has slipped from last month’s high of 21.9 times reported earnings to 21.1 times. That’s still 13 percent more expensive than the 18.6 times multiple of the Standard & Poor’s 500 Index, data compiled by Bloomberg show. 

     Crude rose 0.5 percent in New York, erasing losses to rebound from a one-month low, after tumbling 6.9 percent in the previous two sessions. The rally in crude has lost momentum amid speculation whether major OPEC producers will be able to reach an output freeze agreement. Kuwait’s OPEC governor said producers can still come to an agreement without the participation of Iran.

     Financial services stocks and energy producers fell more than 0.5 percent to contribute the most to Tuesday’s declines. Raw-materials companies climbed 1.9 percent as a group, with gold producers advancing the most in a week. Barrick Gold Corp. and Kinross Gold Corp. added at least 4.7 percent.

     Valeant Pharmaceuticals International Inc. surged 10 percent, rebounding from a five-year low. The drugmaker said a special “ad hoc” board committee found no additional accounting issues that would require more restatements and the company plans to file its annual report on or before April 29.

     Valeant is facing push back from some of its lenders as it seeks to waive a default and loosen restrictions on its debt, according to people with knowledge of the matter. The company has been seeking relief from a technical default that arose when it didn’t file its 10-K before March 15.

     Hudson’s Bay Co. dropped 2.9 percent after reporting fourth-quarter earnings short of analysts’ estimates. The retailer also boosted its sales forecast range for the year, predicting C$14.9 billion to C$15.9 billion, compared a previous C$14.2 billion to C$15.2 billion estimate.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks fell, with the Standard & Poor’s 500 Index posting the steepest loss in four weeks, amid simmering concerns that weakness in global growth will deepen.

     Banks paced the retreat, sinking along with Treasury yields as bonds rallied on haven demand. Bank of America Corp. slid 2.4 percent. Health-care companies fell for the first time in three days, dragged lower by Allergan Plc’s 15 percent tumble after the government took steps to limit so-called inversion deals, threatening its merger with Pfizer Inc.

     The S&P 500 dropped 1 percent to 2,045.17 at 4 p.m. in New York, leaving it little changed for the year and ending the longest streak of calmness in 13 months. The index’s move had been capped within 1 percent in either direction in the last 15 days, something not seen since March 2015. The Dow Jones Industrial Average fell 133.68 points, or 0.8 percent, to 17,603.32. The Nasdaq Composite Index lost 1 percent. About 7.3 billion shares traded hands on U.S. exchanges, 13 percent below the 2016 average.

     “We’re stalling out,” said Michael Block, chief strategist at Rhino Trading Partners LLC in New York. “That’s part of it, and it’s being exacerbated by this continued rally in the Japanese yen and the release from the Treasury that’s causing a lot of pain in Allergan. We have Fed minutes tomorrow and the expectation is for it to be super dovish, and if it’s not then people might get confused.”

     The rally that lifted the S&P 500 as much as 13 percent from a 22-month low in February has started to lose momentum, with sentiment shifting as investors assess whether central banks can fend off weakness in the global economy. Worries that a slowdown in China would spread, intensified by tumbling crude prices had sent stocks to their worst-ever start to a year. Stabilizing oil and signals that policy makers would continue efforts to boost growth supported the late-quarter comeback.

     Comments today from International Monetary Fund Managing Director Christine Lagarde provided no comfort to investors who are apprehensive about global growth. The downside risks have increased and “we don’t see much by way of upside,” she said in an interview with Bloomberg TV.

     The Chicago Board Options Exchange Volatility Index rose 9.2 percent to 15.42, the biggest back-to-back gain in almost two months. The measure of market turbulence closed Friday at a seven-month low.

     Tuesday’s selloff in Allergan came after the S&P 500 health-care group’s best two-day rally in more than six weeks. It also summoned paper losses of more than $200 million each for hedge funds run by John Paulson, Daniel Loeb and Andreas Halvorsen. For Halvorsen and Paulson, the latest loss adds to declines the two have experienced on another common holding, Valeant Pharmaceuticals International Inc., which is down more than 70 percent this year.

     U.S. stocks climbed the most in a month last week, after jobs and manufacturing data strengthened confidence in the economy and Federal Reserve Chair Janet Yellen reaffirmed any interest-rate increases will be gradual. Fed Bank of Chicago President Charles Evans said in a Bloomberg TV interview today the U.K.’s “Brexit” vote and the U.S. presidential elections are fueling uncertainty, complicating decisions for policy makers as well as businesses and investors.

     With Fed officials scrutinizing data to guide their rate decisions, a report today showed activity in services industries picked up in March, indicating the economy was improving after a sluggish start to the year. A separate measure showed the U.S. trade deficit widened in February to a six-month high as an increase in imports exceeded a more modest pickup in shipments overseas.

     The Fed will release minutes tomorrow from its latest meeting. Traders are pricing in zero possibility of a rate increase at the end of April, with December now the first month with at least even odds of higher borrowing costs.

     The recent equity rebound coincided with a weakening dollar and has made the S&P 500 this year’s third-best performer in the developed world, though recent gains in which the index erased losses for the year have come in light volume. In the past two weeks, the daily amount of shares trading hands on U.S. exchanges was more than 20 percent below the 2016 average.

     “I think it’s really more a consolidation. We came a long, long way in the first quarter, the second half,” said Gabriela Santos, global market strategist at JPMorgan Asset Management on Bloomberg TV. “We went down a long way and we came back a long way, and I think it’s a realization that things weren’t as dire as they seemed in January and February but they’re not perfect either.”

     Traders are also awaiting the start of the corporate earnings season, with Alcoa Inc. reporting its first-quarter results on April 11. Analysts estimate profit at S&P 500 firms fell 9.5 percent during the period, compared with forecasts for flat earnings growth at the beginning of the year.

     “The market is taking a more realistic view again of what the fundamental prospects are like,” said Veronika Pechlaner, who helps oversee $10 billion at Ashburton Investments, part of FirstRand Group, in Jersey, Channel Islands. “There is definitely pressure on corporate earnings in certain sectors still, and from a fundamental point of view it’s worrying.”

     All of the S&P 500’s 10 main industries declined Tuesday, with utilities, financial and health-care shares falling at least 1.2 percent. Industrial and phone companies slipped 0.6 percent.

     Allergan fell the most since 2004 to lead the drop in health-care, after the Treasury Department released rules that would limit the ability of U.S. companies to avoid paying taxes by issuing debt to their foreign parents, putting a planned $160 billion merger with Pfizer in jeopardy. Baxalta Inc. lost 7.4 percent amid the fallout, though Shire Plc said its proposed deal with Baxalta is not an inversion. Pfizer rallied 2.1 percent to the highest since Jan. 7, extending a three-day gain to 5.8 percent.

     Elsewhere in the group, health insurers Aetna Inc., Humana Inc. and Anthem Inc. decreased at least 2.3 percent. The retreat follows a release of the government’s Medicare Advantage payment rates to insurers, which were below the rates proposed in February. Valeant Pharmaceuticals rose 10 percent after a board committee found no additional accounting issues that would require more restatements.

     Banks in the benchmark retreated the most since March 8 amid speculation low interest rates will continue to weigh on profits. The 10-Year Treasury yield fell to its lowest in more than a month. Wells Fargo & Co. and Regions Financial Corp. lost more than 2 percent. Within the broader financial group, insurers Chubb Ltd. and Willis Tower Watson Plc fell at least 2.1 percent.

     Fallout from the crackdown on inversion deals was also being felt among merger-advisory firms. Boutique investment banks Evercore Partners Inc., Moelis & Co., Lazard Ltd. and Greenhill & Co. each fell more than 4.2 percent.

     Power producers cooled for a second day after the group posted the strongest quarterly advance in nearly 13 years. Dominion Resources Inc. and NRG Energy Inc. sank more than 2 percent after their best monthly gains in at least five years.

     Among other stocks moving on corporate news, Walt Disney Co. lost 1.7 percent, the biggest slide in more than three weeks. Chief Operating Officer Tom Staggs, who was groomed to succeed CEO Robert Iger, is stepping down in a surprise move that forces Disney to look outside the company for its next chief executive.

     Lumber Liquidators Holdings Inc. jumped 11 percent after winning a tentative ruling dismissing claims that it failed to adequately warn consumers about cancer-causing formaldehyde found in some of its laminate flooring.

Have a wonderful evening everyone.

 

Be magnificent!

Each morning,

we are born again.

What we do today

is what matters most.

Buddha

As ever,

 

Carolann

 

Self-discipline is a form of freedom.  Freedom from laziness and lethargy,

freedom from expectations  and demands of others, freedom from weakness

and fear – and doubt.

                            -Harvey A. Dorfman, b. 1935

 

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:

1928: Maya Angelou was born.

On April 4, 1968, civil rights leader Martin Luther King Jr., 39, was shot to death in Memphis, Tenn.

…and I’m off to Vancouver in a few minutes to attend an evening dinner and presentation with Peter Tertzakian, author of A Thousand Barrels a Second and, more recently The End of Energy Obesity – Breakingtoday’s energy addiction for a prosperous and secure tomorrow.  Tell you about it tomorrow.

PHOTOS OF THE DAY

A red flower sticks out surrounded by yellow flowers in a park in London, Monday. Frank Augstein/AP

People enjoy cherry-blossom viewing at Ueno Park in Tokyo, Sunday. Cherry blossoms, the country’s iconic flower, are in full bloom this weekend. Shizuo Kambayashi/AP

Market Closes for April 4^th, 2016

Market Index	Close	Change
Dow Jones	17737.00	-55.75   -0.31%
S&P 500	2064.59	-8.19   -0.40%
NASDAQ	4891.797	-22.745   -0.46%
TSX	13317.72	-122.72
		-0.91%

International Markets

Market Index	Close	Change
NIKKEI	16123.27	-40.89
		-0.25%
HANG SENG	20498.92	-277.78
		-1.34%
SENSEX	25399.65	+130.01
		+0.51%
FTSE 100	6164.72	+18.67
		+0.30%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.230	1.240
CND. 30 Year Bond	1.994	2.009
U.S.    10 Year Bond	1.7653	1.7705
U.S. 30 Year Bond	2.5958	2.5951

Currencies

BOC Close	Today	Previous
Canadian $	0.76478	0.76862
US $	1.30757	1.30102
Euro Rate 1 Euro=		Inverse
Canadian $	1.49013	0.67108
US $	1.13962	0.87748

Commodities

Gold	Close	Previous
London Gold Fix	1219.75	1213.60
Oil	Close	Previous
WTI Crude Future	35.70	36.79

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a third day, to the lowest level in almost a month, as a rally led by raw-material producers in the first quarter has faltered in April.

     The Standard & Poor’s/TSX Composite Index fell 0.8 percent to 13,336.15 at 4 p.m. in Toronto. While the Canadian benchmark equity gauge has lost 1.2 percent in a three-day slide, it’s still up 2.5 percent this year and remains one of the best- performing developed markets in the world.

     The resource-fueled rally through February and March that propelled the S&P/TSX in the first quarter of the year has not continued, as commodities from gold to copper and crude have retreated. The broader S&P/TSX’s valuation has slipped from last month’s high of 21.9 times reported earnings to 21.2 times. That’s 13 percent more expensive than the 18.8 times multiple of the S&P 500 Index, data compiled by Bloomberg show. 

     “Are global portfolio managers ready to underweight Canada again? The answer to this question is yes,” Javed Mirza, a technical analyst with RBC Capital Markets, said in a research note. “Given the larger weighting of energy in the TSX, deterioration in energy will be an additional headwind for the S&P/TSX Composite relative to other resource-light equity indexes.”

     Mirza says the potential that energy stocks have peaked and will now decline provides an opportunity to buy into the industry at a more attractive level in the summer. The S&P/TSX Energy Index is up 4.1 percent this year.

     Crude fell to a one-month low on Monday, dropping 3 percent in New York amid speculation whether major OPEC producers will be able to come to an output freeze agreement. Gold sank for a second day while copper is down seven days in a row, its worst run since February 2014. 

     Canadian raw-materials producers dropped 2 percent Monday, for the biggest drag on the S&P/TSX, while financials and energy producers also retreated. Trading volume was 37 percent lower than the 30-day average.

     BlackBerry Ltd. lost 2.4 percent for a second day of losses, slipping to a seven-week low. The smartphone maker reported fourth-quarter sales short of analysts’ estimates on April 1, as it works to shift its business towards software and services.

     Valeant Pharmaceuticals International Inc. dropped 6.1 percent, trading near a 2011 low. The drugmaker is facing push back from some of its lenders as it seeks to waive a default and loosen restrictions on its debt, according to people with knowledge of the matter. Valeant has been seeking relief from a technical default that arose when it didn’t file its 10-K before March 15.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks slipped from their highest levels this year, with declines in consumer and industrial shares overshadowing gains in health-care companies, as investors looked for fresh reasons to continue a rally.

     Equities lost momentum after after capping a sixth weekly gain in seven. Ford Motor Co. and General Motors Co. fell more than 1.8 percent to the lowest in more than a month, sliding for a second day after disappointing March sales. Miner Freeport- McMoRan Inc. lost 4.8 percent as copper capped its longest losing streak in two years. Virgin America Inc. jumped 42 percent after Alaska Air Group Inc. agreed to buy the carrier for $2.6 billion.

     The Standard & Poor’s 500 Index dropped 0.3 percent to 2,066.13 at 4 p.m. in New York, the biggest slide in more than a week. The Dow Jones Industrial Average lost 55.75 points, or 0.3 percent, to 17,737. The Nasdaq Composite Index declined 0.5 percent. About 6.4 billion shares traded hands on U.S. exchanges, 25 percent below the 2016 average.

     “There’s a big divergence in opinion right now over whether this rally is a head fake or not,” said Craig Sterling, head of U.S. equity research at Pioneer Investments in Boston. “Stocks have gone up on not a lot of volume and we’re kind of at an inflection point right now. If we see a leg down in oil or bad macro data, or the rate trade doesn’t go the right way for equities, then we’re back to where we started the year.”

     The main U.S. equity benchmark retreated after extending 2016 gains on Friday, an advance that came amid reports showing the pace of job creation remained robust and manufacturing activity improved. That bolstered confidence in the economy, while central banks have signaled they will continue their efforts to support growth.

     The S&P 500 staged a rebound in the second half of the last quarter, erasing losses of as much as 11 percent, helped by a rally in crude oil and easing concerns that a global slowdown will deepen. Still, recent gains have come in light trading, with the benchmark going its longest without a daily move of 1 percent in more than a year. The index was about 3 percent from a record reached last May, and is one of three developed-market indexes that has erased losses for the year.

     Meanwhile, the Chicago Board Options Exchange Volatility Index rose 7.8 percent Monday to 14.12, the most in five weeks. The measure of market turbulence known as the VIX closed Friday at the lowest since August, 26 percent below its average over the past year.

     Following Fed Chair Janet Yellen’s reassurance last week that the pace of future rate increases will be gradual, traders are pricing in zero possibility of a hike at the end of April, with December now the first month with at least even odds of higher borrowing costs. A report today showed a measure of factory orders declined in February, suggesting business investment will be a drag on growth again in the first quarter. Minutes from the Fed’s meeting last month are due for release on Wednesday.                       

     Attention will begin shift more toward corporate earnings, with Alcoa Inc. unofficially kicking off the reporting season when it releases first-quarter results on April 11. Analysts estimate profit at S&P 500 firms fell 9.5 percent during the period, compared with forecasts for flat earnings growth at the beginning of the year. The S&P 500 now trades at its highest valuation since July, based on 12-month projected earnings.

     Strategists at Jefferies Group LLC see more room for stocks to rise, citing in part the low expectations for earnings which should make it easier for companies to produce surprises. “The bottom line is that with the Fed dovish, stock market investors skeptical and earnings set to be revised up, investors should guard against the risk of an upside breakout in stocks,” wrote the team led by Sean Darby, chief global equity strategist, in a note today. “The question then will be whether last May’s top remains intact.”

     Eight of the S&P 500’s 10 main industries fell Monday, with industrial, raw-materials and consumer discretionary companies losing at least 0.8 percent. Health-care shares gained 1 percent to the highest in almost three months, boosted by drug developers.                          

     General Electric Co. sank 2.2 percent, the most in seven weeks, after Sanford C. Bernstein & Co. Inc. downgraded the shares to the equivalent of neutral from buy, citing valuation. The stock had rallied more than 16 percent from a February low and was up 28 percent compared to a year ago. Caterpillar Inc. fell 1.4 percent to snap a six-day winning streak.

     Among consumer companies, PulteGroup Inc. lost 6.6 percent, the most since October, as the company’s chief executive officer plans to step down after pressure from the homebuilder’s founder. Richard Dugas will retire next year after more than a decade as CEO, according to a statement.

     Parts makers BorgWarner Inc. and Delphi Automotive Plc slid at least 3.8 percent. Wells Fargo Securities LLC analyst Richard Kwas wrote in a note that a report the stocks may be weighed by concerns about long-term European Union pollution targets expected next year. Nike Inc. dropped 2.6 percent to a three- week low, with the shares falling below their average prices during the past 50 and 200 days.

     Consumer staples in the benchmark retreated from an all- time high. J.M. Smucker Co. fell 3.7 percent, the most in 10 months, after Goldman Sachs Group Inc. downgraded the shares to sell. Hershey Co. and Archer-Daniels-Midland Co. decreased more than 1.1 percent.                       

     Facebook Inc. slid 3 percent, the most in almost two months. The company is in an “unfavorable set up” going into earnings, according to Deutsche Bank AG analyst Ross Sandler. Quarterly revenue expectations are high and may lead to temporary weakness, though investors should view a decline in the stock as a buying opportunity, the analyst wrote.

     Apple Inc. rose for the fourth time in five sessions, climbing 1 percent, while Yahoo! Inc. advanced 1.5 percent to the highest since August. Reuters reported late Friday that Time Inc. is said to consider partnering with a private-equity firm on a bid for Yahoo’s core Internet assets.

     Edwards Lifesciences Corp. surged 17 percent to an all-time high, pacing the climb in health-care after a study offered evidence on the benefits of its newest aortic valve. Allergan Plc and Vertex Pharmaceuticals Inc. rallied more than 3.5 percent as drug developers climbed for a third day. The Nasdaq Biotechnology Index rose 0.9 percent, after climbing as much as 2.4 percent.

     Pfizer Inc. and Merck & Co. Inc. increased at least 1.3 percent. Health-care companies had the smallest March increase of the S&P 500’s main groups, and are one of two — along with financials — to still hold losses for the year.

 

Have a wonderful evening everyone.

 

Be magnificent!

Society cannot be changed unless man changes.

Man, you and others, have created these societies

for generations upon generations.

Krishnamurti

As ever,

 

Carolann

 

One isn’t necessarily born with courage, but one is born with potential.  Without courage,

we cannot practice any other virtue with consistency.  We can’t be kind, true, merciful,

generous, or honest.

                               -Maya Angelou, 1928-2014

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in 1700, April Fools’ Day tradition of playing practical jokes becomes popularized in England.

FIVE THINGS ABOUT APRIL FOOL’S DAY

           -from The National Post, April 1, 2016

1 PRANK HALL OF FAME

ON April 1, 1957, the BBC aired a three-minute segment about Swiss spaghetti farmers plucking long strands of pasta from tree branches.  Hundreds of viewers wrote in asking how they could cultivate their own spaghetti tree.  It has been declared one of the greatest April Fool’s pranks of all time.

2 HILARIA’S MOCKERY

Some historians believe April Fool’s Day has its origins in ancient Rome, with a festival known as Hilaria.  Usually celebrated on March 25, Hilaria was a day for games, masquerades, and generally whiling away the day with relentless moking.

3 MERRY, BUT FOOLISH?

The two-day Hindu celebration Holi, the Persian festival Sizdah Beder and the Jewish holiday Purim also fall in early spring.  While not explicitly about tricking people, the holidays involve various forms of merriment and frivolity.  The Museum of Hoaxes (it’s a real thing) notes there is no evidence  that April Fool’s Day came from any of these celebrations.

4 FEAST OF FOOLS

The Catholic Church’s Feast of Fools was celebrated around Jan. 1 in medieval France and England.  Church officials originally encouraged the carnival-like celebration, which involved dressing in costume and bringing donkeys into church.  But by the 15^th century they decided the feast had become too raucous and banned it.

5 CALENDAR THEORY

Pope Gregory Xlll issued a decree in 1563 ordering that Christian countries adopt a standardized calendar.  The Gregorian calendar moved the new year from the end of March to Jan. 1: people who continued to celebrate on the old day were mocked as “April fools.”  One problem with this theory?  The first unambiguous reference to April Fool’s Day came in a Flemish poem published three years before the switch.

A story in The Vancouver Sun today lends credence to George Orwell’s contention that “We may find in the long run that tinned food is a deadlier weapon than the machine gun.”

Check out this story: http://www.vancouversun.com/health/majority+canned+foods+canada+have+high+amounts+toxic+chemical/11820501/story.html

PHOTOS OF THE DAY

A woman looks at cherry blossoms in almost full bloom in Tokyo, Japan, Friday. Issei Kato/Reuters

Manor driver Pascal Wehrlein of Germany steers his car during the second free practice session ahead the Bahrain Formula One Grand Prix at the Formula One Bahrain International Circuit, in Sakhir, Bahrain, Friday. Hassan Ammar/AP

Market Closes for April 1^st, 2016

Market Index	Close	Change
Dow Jones	17792.75	+107.66   +0.61%
S&P 500	2072.78	+13.04   +0.63%
NASDAQ	4914.543	+44.695   +0.92%
TSX	13440.33	-54.03
		-0.40%

International Markets

Market Index	Close	Change
NIKKEI	16164.16	-594.51
		-3.55%
HANG SENG	20498.92	-277.78
		-1.34%
SENSEX	25269.64	-72.22
		-0.28%
FTSE 100	6146.05	-28.85
		-0.47%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.240	1.231
CND. 30 Year Bond	2.009	2.009
U.S.    10 Year Bond	1.7705	1.7704
U.S. 30 Year Bond	2.5951	2.6127

Currencies

BOC Close	Today	Previous
Canadian $	0.76862	0.77127
US $	1.30102	1.29657
Euro Rate 1 Euro=		Inverse
Canadian $	1.48247	0.67445
US $	1.13947	0.87760

Commodities

Gold	Close	Previous
London Gold Fix	1213.60	1237.00
Oil	Close	Previous
WTI Crude Future	36.79	38.34

Market Commentary:

Money differs from an automobile or mistress in being equally important to those who have it and those who do not. –John Kenneth Galbraith.

Canada

By Eric Lam

     (Bloomberg) — After the biggest monthly rally since 2011, Canadian stocks stalled to start April, as crude wiped out gains for the year and gold declined after data showed the U.S. economy added more jobs than forecast.

     The Standard & Poor’s/TSX Composite Index fell 0.4 percent to 13,440.44 at 4 p.m. in Toronto for a second day of losses. The Canadian benchmark equity gauge rose 4.9 percent in March, the best monthly advance since October 2011. The S&P/TSX is also up 3.3 percent this year and remains one of the best-performing developed markets in the world, trailing only New Zealand.

     Canadian equities had a seesaw first quarter, as losses by energy and raw-materials producers through Jan. 20 were wiped out by rebounding resource companies during February and March. The broader S&P/TSX trades at 21.3 times earnings, about 13 percent more expensive than the valuation of the U.S. equity benchmark, the Standard & Poor’s 500 Index, data compiled by Bloomberg show. 

     Crude slumped to cap a weekly decline of 6.8 percent in New York, dipping below $37 a barrel and erasing gains for the year after Saudi Arabia said it will only freeze its oil output if Iran and other major producers do so, the kingdom’s deputy crown prince, Mohammed bin Salman, said in an interview with Bloomberg.

     Gold futures for June delivery fell 1 percent to settle at $1,223.50 an ounce in New York, as demand for the metal as a store of value declined after the latest U.S. jobs report. Employers added 215,000 workers in March, more than forecast, while the unemployment rate climbed to 5 percent as more people entered the labor force. The latest signs of strength in the U.S. economy come after Federal Reserve Chair Janet Yellen this week sounded caution over the pace of interest-rate increases amid uneven global economic growth.

     Energy producers sank 2.4 percent, the most in the S&P/TSX, and financial services stocks retreated. Raw-materials companies rebounded in afternoon trading, erasing a loss of as much as 1.6 percent to finish the day higher. Kinross Gold Corp. added 2.3 percent to its highest since July 2014. The three industries account for about two-thirds of the S&P/TSX. Trading volume was 17 percent lower than the 30-day average.

     BlackBerry Ltd. slumped 7.6 percent, the most since January, after the smartphone maker posted sales that fell short of analysts’ estimates on lackluster demand for its new handset. The company is shifting to software and services and away from devices as it struggles to compete with smartphones from Apple Inc. and Google Inc.

     Bombardier Inc. climbed 5.3 percent, touching a November high, after the struggling aerospace manufacturer secured a firm order for 20 Challenger jets valued at $534 million.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks advanced to the highest levels this year amid optimism on the economy and expectations for only gradual increases in interest rates, overshadowing a selloff in oil.

     Signs of strengthening growth in jobs and manufacturing data, coming right after Federal Reserve Chair Janet Yellen this week indicated global risks warranted restraint on lifting rates, presented the best of both worlds for investors Friday to help to overcome an early retreat sparked by falling crude prices.

     The Standard & Poor’s 500 Index rose 0.6 percent to 2,072.78 at 4 p.m. in New York, the highest close in 2016 while pushing this year’s gain to 1.4 percent. The Dow Jones Industrial Average added 107.66 points, or 0.6 percent, to 17,792.75, the highest since Dec. 4 after reversing a 117-point slide. The Nasdaq Composite Index increased 0.9 percent to its highest this year. About 7 billion shares traded hands on U.S. exchanges, 17 percent below the 2016 average.

     “We now have a super dovish Fed in our corner and jobs data in line with the trend,” said Yousef Abbasi, global market strategist at JonesTrading Institutional Services LLC in New York. “The market initially sold off on the conflict of a dovish message and then beats on every single line of the data, but now people are realizing you have a combination of better economic data and a Fed that’s being very gentle with the market. It seems the Fed’s more concerned with the global picture than the domestic picture.”

     Equities shook off early losses after data showed manufacturing activity expanded in March for the first time in seven months, in a sign factories are emerging from their worst slump since the last recession. That followed a report showing payrolls and average hourly earnings rose more than forecast, while the jobless rate crept up as more people entered the labor force.

     Additional tightening in the job market that sparks bigger pay gains for American workers may convince Fed policy makers that the economy is more insulated to weakness overseas.

     The S&P 500 rose after its strongest monthly climb since October. Equities staged a sizzling comeback in the first quarter’s final six weeks, as crude rebounded from a 12-year low and central bankers from Asia to Europe and America eased concerns that a global slowdown would deepen as they signaled a willingness to bolster growth. The gauge rose 0.8 percent in the past three months, marking the first time since 1933 it finished a quarter with a gain after falling at least 10 percent.

     Still, the late-quarter rally came amid light trading, with a three-week stretch that’s seen the S&P 500 go its longest without a daily move of 1 percent in more than a year. The index is now 2.7 percent from a record reached last May. The Chicago Board Options Exchange Volatility Index fell 32 percent in March, snapping its longest streak of monthly increases in four years. The measure of market turbulence known as the VIX slipped 6.1 percent Friday to 13.10, its lowest since Aug. 17.

     “There’s good data across the board and it’s consistent with the view that manufacturing sector has bottomed,” said Jon Adams, portfolio manager at BMO Asset Management Corp. in Chicago, where he helps oversee $217 billion. “The weaker dollar over the last couple of months will help as well, as will stabilization in energy prices.”

     Policy makers have stressed the timing of rate increases will depend on progress in economic data, though the Fed’s Yellen boosted stocks this week after saying heightened risks to the global economy warranted a cautious approach to further rate hikes.

     Traders are pricing in no chance the central bank will raise rates in April, while the probability of a June move rose to 24 percent after the jobs report from 20 percent. Odds for June were 38 percent a week ago, before Yellen’s remarks. November is now the first month with at least even odds of higher borrowing costs, replacing December after today’s data.

     As the second quarter begins, attention will shift to the earnings season, which unofficially kicks off when Alcoa Inc. reports first-quarter results on April 11. Analysts estimate profit at S&P 500 firms fell 9.5 percent during the period, compared with forecasts for a 4.5 percent drop two months ago.

     In Friday’s trading, roles were reversed among the S&P 500’s 10 main industries, with investors selling last month’s biggest winners — energy producers — and scooping up health- care shares which lagged the most in March.

     A rally among drug developers propelled health-care higher, after the Nasdaq Biotechnology Index’s worst quarterly drop in nearly 14 years. The gauge rose 2.9 percent Friday, the biggest climb in a month. Regeneron Pharmaceuticals Inc. jumped 12 percent, the most in four years. Its drug to treat a serious skin condition met its goals in two final-stage trials. Amgen Inc. added 2.8 percent to a two-month high, while Pfizer Inc. rose 1.4 percent.

     Banks in the benchmark resumed a climb after their best month in more than a year. Citigroup Inc. and JPMorgan Chase & Co. increased at least 1.1 percent. In the broader financial group, Capital One Financial Corp. and Morgan Stanley added more than 2 percent. Goldman Sachs Group Inc. gained 1.8 percent, rising for a fifth session in its longest rally since November.

     Food and beverage makers boosted consumer staples, which extended an all-time high. ConAgra Foods Inc. and General Mills Inc. both reached records, rising at least 2.5 percent. Drugstore chain Walgreens Boots Alliance Inc. climbed 2.9 percent, the most in three months, to a 2016 high.

     The energy group surged 9.2 percent last month amid crude’s recovery, though the oil selloff today sapped momentum as West Texas Intermediate futures slid 4 percent. Saudi Arabia’s deputy crown prince said the kingdom will only freeze production if Iran and others follow suit. Chevron Corp. lost 1.2 percent, while Transocean Ltd. and Marathon Oil Corp. sank more than 5.2 percent.

     Ford Motor Co. and General Motors Co. both fell at least 2.9 percent and Fiat Chrysler Automobiles NV tumbled 4.1 percent after March sales gains at all three automakers were short of analysts’ forecasts. Parts makers BorgWarner Inc. and Delphi Automotive Plc sank more than 1.7 percent. Auto-related shares in the S&P 500 are coming off their best month since October.

     Airlines dragged down a group of transportation stocks after Deutsche Bank AG analyst Michael Linenberg downgraded ratings to hold from buy on American Airlines Group Inc., United Continental Holdings Inc., Delta Air Lines Inc. and Hawaiian Holdings Inc. citing signs of potential slowing in the economy which would damp business travel. The four carriers fell more than 2.4 percent.

Have a wonderful weekend everyone.

 

Be magnificent!
 

Two people who have lived together for a  long time have an image of each other which prevents them from really relating to each other.

Therefore, it is important to understand, not intellectually, but actually in your daily life,

how you have built these images about your wife, your husband,

your neighbor, your child, your country, your leaders, your politicians,

your gods – you have nothing but images.

These images create the space between you

and what you observe

and in that space there is conflict.

As ever,

 

Carolann

 

The reading of all good books is like a conversation

with the finest men of past centuries.

                               -René Descartes, 1596-1650

 

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