Month: July 2016

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A hummingbird flies in the sanctuary El Paraiso de los Colibries near Cali, Colombia, on Thursday. Jaime Saldarriaga/Reuters

The Christ the Redeemer statue stands atop Corcovado Mountain at dawn in Rio de Janeiro on Friday. Felipe Dana/AP

Market Closes for July 29^th, 2016

Market Index	Close	Change
Dow Jones	18432.24	-24.11   -0.13%
S&P 500	2173.60	+3.54   +0.16%
NASDAQ	5162.133	+7.150   +0.14%
TSX	14582.74	+30.02
		+0.21%

International Markets

Market Index	Close	Change
NIKKEI	16569.27	+92.43
		+0.56%
HANG SENG	21891.37	-282.97
		-1.28%
SENSEX	28051.86	-156.76
		-0.56%
FTSE 100	6724.43	+3.37
		+0.05%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.027	1.067
CND. 30 Year Bond	1.641	1.685
U.S.    10 Year Bond	1.4531	1.5027
U.S. 30 Year Bond	2.1827	2.2255

Currencies

BOC Close	Today	Previous
Canadian $	0.76734	0.76012
US $	1.30320	1.31559
Euro Rate 1 Euro=		Inverse
Canadian $	1.45611	0.68676
US $	1.11733	0.89499

Commodities

Gold	Close	Previous
London Gold Fix	1342.00	1341.75
Oil	Close	Previous
WTI Crude Future	41.60	41.14

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks pared a weekly decline as energy producers advanced after crude oil rebounded from the precipice of a bear market. The nation’s equity benchmark completed a monthly gain, after swinging between gains and losses, with disappointing economic data and earnings setting the tone on the last day of July trading.

     The S&P/TSX Composite Index rose 0.2 percent to 14,582.74 at 4 p.m. in Toronto. The equity gauge rose 3.7 percent in July, its best month since March. Trading volume was 12 percent lower than the 30-day average. Equity markets will be closed on Monday for a holiday. 

     The Canadian benchmark is up 12 percent in 2016, one of the best gains among developed markets this year. The rally has made Canadian stocks more expensive than their U.S. peers, with a price-earnings ratio of 23.1 for the S&P/TSX, about 14 percent higher than the S&P 500 Index.

     Seven of the 10 main groups in the index retreated Friday, as data showed Canada’s gross domestic product contracted at the fastest pace in more than seven years in May after wildfires curbed Alberta oil production. In the U.S., the economy expanded slower than forecast, driving the biggest drop in the U.S. dollar in almost two months and boosting commodities prices.

     Even with oil-sands production having recovered since the May wildfires, “the underlying weakness of the economy means that second-quarter GDP still contracted between 1 percent and 1.5 percent,” said Paul Ashworth, chief North America economist at Capital Economics in a note to clients. “With the U.S. economy clearly struggling too, hopes of a non-energy export led recovery in Canada look less realistic now.”

     Energy producers bolstered gains Friday. The group rose 1.2 percent, reversing an earlier decline of as much as 0.7 percent. Enbridge Inc. climbed 3 percent after reporting second-quarter earnings just short of expectations. Crude rebounded, rising as much as 1.2 percent, pulling back from earlier losses that would have pushed prices into a bear market. Raw-materials producers climbed 1 percent led by gold and silver producers. The two industries account for about a third of S&P/TSX companies by market capitalization.

     The Canadian benchmark posted a fifth monthly gain in six, led by advances across every industry in the S&P/TSX except for energy producers. Technology stocks have the biggest increase in July at 9.2 percent, with Celestica Inc. and supply-chain company Kinaxis Inc. advancing at least 19 percent.

     Mining stocks are the top group in the S&P/TSX this year, up 61 percent so far in 2016, the best year-to-date performance for the group in at least 30 years, according to data compiled by Bloomberg. 

     Mining and energy stocks have propelled Canada to the second-best performance among developed markets this year with a 12 percent increase, trailing only New Zealand. The S&P/TSX has joined global markets extending gains this month following a brief post-Brexit vote swoon amid a stretch of solid U.S. economic data and improving earnings.

US

By Anna-Louise Jackson and Bailey Lipschultz

     (Bloomberg) — U.S. stocks edged higher, with the S&P 500 Index capping a fifth monthly gain, after data showing the American economy grew slower than forecast last quarter gave the Federal Reserve no reason to accelerate its time table for higher interest rates. Earnings from Alphabet Inc. boosted technology shares.

     The S&P 500 rose 0.2 percent to 2,173.55 at 4 p.m. in New York, closing within two points of its record. The gauge climbed 3.6 percent in July. The Dow Jones Industrial Average fell 0.1 percent to 18,432, a fifth straight loss for the longest slide since June 15. The 30-stock index rose 2.8 percent in July, a sixth consecutive advance. The Nasdaq 100 Index rose 0.2 percent Friday, leaving it 7 percent higher in the month.

     The U.S. economy stumbled in the first half of 2016 as companies retrenched, leaving consumers to shoulder the burden of sustaining growth heading into the presidential election. That didn’t deter equity gains, with the S&P 500 overcoming the longest stretch without a record outside of a bear market since 1985 as central banks signaled additional stimulus and corporate earnings topped estimates.

     “The market seems to shed anything that would otherwise disrupt its desire to climb higher,” said Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, which manages $54 billion. “While these numbers are a little bit in hindsight, you have to at least take into account their momentum and see that the validation for the market is that the economic situation is going to be sufficiently decent to improve the earnings picture going forward.”

     While the Federal Reserve earlier in the week held its rates unchanged as forecast, it reiterated its intention to raise rates only gradually. At the same time, the Bank of Japan on Friday damped expectations for looser policy by keeping its key monetary tools unchanged and saying it will mount a comprehensive review of its policy framework.

     The GDP data come as investors sift through one of the busiest weeks of the earnings season. Halfway through, more than 80 percent of the S&P 500 companies that have reported so far beat profit projections and almost 60 percent topped sales estimates. Analysts have eased their expectations for a drop in second-quarter earnings to 4.5 percent.

     Google parent Alphabet rose to the highest since December after its quarterly profit topped estimates. Amazon.com Inc. climbed after forecasting sales that may exceed analysts’ projections. Cigna Corp. declined after the health insurer reported quarterly earnings that missed estimates and cut its full-year forecast. Exxon Mobil Corp. and Chevron Corp. each retreated after results disappointed.

 

Have a wonderful long weekend everyone.

 

Be magnificent!
 

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

As ever,

 

Karen

 

“It is not in the stars to hold our destiny but in ourselves”. William Shakespeare 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A woman looks at the painting ‘Wave’ by Ivan Aivazovsky in the Tretyakov Picture Gallery in Moscow on Thursday. Russian romantic painter Aivazovsky is considered one of the greatest marine artists in history. The exhibition, which collected paintings from several museums, marks the 200-year anniversary of his birth. Pavel Golovkin/AP

A child climbs onto a giant laptop keyboard during a promotional event at a shopping center in Beijing on Thursday. Thomas Peter/Reuterss

Market Closes for July 28^th, 2016

Market Index	Close	Change
Dow Jones	18456.35	-15.82   -0.09%
S&P 500	2171.66	+5.08   +0.23%
NASDAQ	5154.984	+15.175   +0.30%
TSX	14557.00	+10.46
		+0.07%

International Markets

Market Index	Close	Change
NIKKEI	16476.84	-187.98
		-1.13%
HANG SENG	22174.34	-44.65
		-0.20%
SENSEX	28208.62	+184.29
		+0.66%
FTSE 100	6721.06	-29.37
		-0.44%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.067	1.076
CND. 30 Year Bond	1.685	1.688
U.S.    10 Year Bond	1.5027	1.4976
U.S. 30 Year Bond	2.2255	2.2110

Currencies

BOC Close	Today	Previous
Canadian $	0.76012	0.75918
US $	1.31559	1.31721
Euro Rate 1 Euro=		Inverse
Canadian $	1.45723	0.68623
US $	1.10767	0.90280

Commodities

Gold	Close	Previous
London Gold Fix	1341.75	1329.00
Oil	Close	Previous
WTI Crude Future	41.14	41.92

Market Commentary:

Canada

     July 28, 2016 (Xinhua) — Canada’s main stock market in Toronto inched higher slightly Thursday as investors responded positively to a string of company profit reports and energy stocks mostly gained although crude oil prices extended losses.

     The Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite Index gained 5.10 point, or 0.04 percent, to close at 14,551.64 points. Five of the TSX index’s eight main sub-sectors were higher.

     Oil prices continued to fall on Thursday after data showed U.S. crude stockpiles gained unexpectedly, deepening market concerns on oversupply.

     U.S. Texas light sweet crude for September delivery lost 0.78 U.S. dollars to settle at 41.14 U.S. dollars a barrel, while Brent crude for September delivery erased 0.77 U.S. dollars to close at 42.70 U.S. dollars a barrel.

     TSX energy group climbed 1.11 percent despite a fall in crude oil, while the metal & mining group, which includes precious and base metals miners and fertilizer companies, rebounded 4.85 percent.

     The most notable gainers included Cenovus Energy Inc., hiking 6.69 percent to 18.67 Canadian dollars (14.19 U.S. dollars) after posting a smaller-than-expected quarterly loss, and First Quantum Minerals Ltd., which jumped 9.13 percent to 11.35 Canadian dollars.

     Teck Resources Limited, the largest producer of steelmaking coal in North America, gained 6.60 percent to 20.19 Canadian dollars after reporting a surprise quarterly profit as its costs declined.

     TransCanada Corporation rose 1.51 percent to 60.35 Canadian dollars after reporting a slightly higher-than-expected quarterly profit.

     The biggest drags included Potash Corporation of Saskatchewan Inc., the world’s biggest fertilizer company by capacity, down 7.18 percent to 20.95 Canadian dollars after cutting its full-year profit forecast and dividend for a second time this year.

     In financial sector, Royal Bank of Canada has taken the top spot among the big banks in an influential annual survey of customer satisfaction, knocking off Toronto-Dominion Bank, which had held the honor for 10 consecutive years.

     According to the J.D. Power 2016 Canadian Retail Banking Satisfaction Study, RBC ranked highest in overall customer satisfaction among the five biggest Canadian banks, with a score of 765 on a 1,000-point scale.

     On the economic beat, Statistics Canada reported that average weekly earnings were 956 Canadian dollars in May, up 0.2 percent from the previous month. Compared with 12 months earlier, average weekly earnings increased 0.9 percent.

     The Canadian dollar traded higher at 0.7598 U.S. dollar, compared with Wednsday’s closing rate of 0.7581 U.S. dollar.

US

By Dani Burger

     (Bloomberg) — U.S. stocks rose, lifting the S&P 500 Index within striking distance of an all-time high, amid a mix of corporate results as investors await data Friday on the strength of the American economy. Stimulus bets influenced currency markets ahead of the Bank of Japan’s policy meeting.

     The S&P 500 staged an afternoon comeback to end five points below its record after falling as much as 0.4 percent. Earnings from Ford Motor Co. to Facebook Inc. tugged indexes in opposite directions. Google parent Alphabet Inc. surged almost 5 percent at 4:10 p.m. after its profit topped estimates. Amazon.com Inc. slipped 1 percent in late trading.

     The dollar weakened on the Federal Reserve’s assurance that it will raise rates gradually, while the yen erased gains before the BOJ stimulus decision. The pound slid on bets the Bank of England will lower rates next week. Oil slipped toward $41 a barrel, approaching a bear market.

     Traders have whipsawed currencies from the yen to the pound this week on speculation over additional stimulus. They’ll get more data in the next 24 hours, as the BOJ is expected to expand a record program, while Europe will announce results of the latest stress tests for banks before investors get their first glimpse of U.S. gross domestic product in the second quarter. Earnings from Alphabet Inc. to Amazon.com Inc. are due after U.S. trading closes.

     “People are waiting for a catalyst to get us moving again,” John Stoltzfus, chief market strategist at Oppenheimer & Co. in New York, said by phone. “People are waiting to see what’s next in line. The market is digesting all the activity it’s had to face from a geopolitical point of view, a macro economic point of view as well as digesting this current earnings season.”

     The S&P 500rose 0.2 percent to 2,170.01 at 4 p.m. in New York, 0.2 percent below the 2,175.03 all-time high set July 22. The index has added more than 3 percent in July, though it’s been in a rare holding pattern for the past two weeks. Since the S&P 500 Index hit the fourth straight all-time high on July 14, the benchmark gauge has alternated between gains and losses, finishing every day less than 0.5 percent from the previous close. The 10-day streak is the longest since data began in 1927.

     While the prospects for additional central-bank support bolstered equities, better-than-forecast economic data and corporate earnings that broadly beat projections have also helped lift the S&P 500 this month. The gauge posted seven records in 10 days in a midmonth stretch, and it’s rebounded 18 percent since its low in February. It’s up 6 percent this year – – one of the best gains in developed-world equities.

     Ford sank 8.2 percent after earnings missed estimates. General Motors Co. dropped 3.3 percent. Whole Foods Markets Inc. sank 9.5 percent on poor results. Facebook climbed to a record on sales that topped forecasts. MasterCard Inc., the second- largest U.S. payments network, advanced after saying profit rose 6.7 percent as customer card spending increased.

     The Stoxx Europe 600 slid 1 percent. The gauge is 2 percent from its June 23 level, the day of the U.K.’s EU referendum, while U.S. and Asian shares have already recovered from their losses. Banks fell the most among Stoxx 600 industry groups. Banca Popolare di Milano Scarl, Deutsche Bank AG and Banco Popular Espanol SA declined more than 3 percent, with the latest stress-test results to be released on Friday.

     The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, lost 0.1 percent. Against the euro, the U.S. currency was headed for its biggest two-day slide since June. The euro fell 0.2 percent to $1.1076. The yen was little changed at 105.42 per dollar after dropping 0.8. percent. majority of economists polled by Bloomberg predict the BOJ will boost asset purchases on Friday and lower the already negative key rate.

     The pound slipped against all of its 16 major counterparts with swaps trading indicating that the Bank of England is certain to cut its key interest rate rate next week. Sterling dropped 0.5 percent to $1.3156.

     Oil fell to a three-month low, edging closer to a bear market, after U.S. crude supplies unexpectedly rose from what was already the highest seasonal level in at least two decades. West Texas Intermediate crudedecreased 1.9 percent to settle at $41.14 a barrel and Brent slipped 1.8 percent to $42.70.

     Oil is near the 20 percent drop from early June that would characterize a bear market. The recovery driven by supply disruptions that saw prices almost double from a 12-year low reached in February has petered out amid renewed concerns about the strength of demand.

     “There is still a surplus and the oil price is going to have difficulty sustaining any rally because of that,” David Lennox, an analyst at Fat Prophets in Sydney, said by phone. “We’re now heading toward the end of the drive season and the market is probably going to weaken further. The $40 a barrel level looks like the base at the moment.”

     Platinum is up 11 percent in July, putting prices on track for the best month since 2012. Palladium is even better, jumping 17 percent, the most since 2008. By comparison, gold added less than 2 percent in July as it lost momentum after gains in the first half.

     Platinum futures for October delivery rose 0.9 percent to settle at $1,138.90 an ounce, while gold futures climbed 0.5 percent to settle at $1,341.20 an ounce.

     Treasuries declined for the first time in three days, pushing the 10-year yield up one basis point to 1.50 percent. The yield slid on Wednesday by the most since July 5 after the Fed’s rate decision.

     U.S. government debt has rallied about 5 percent in 2016 as the Fed held off on raising interest rates after liftoff from near zero in December, while central banks in Japan and Europe maintained unprecedented stimulus.

     The default rate for leveraged loans in the energy sector could spike close to 18 percent if Templar Energy LLC and Stallion Oilfield Services Ltd. are unable to make interest payments on their debt, Fitch Ratings said.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

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

 

As ever,

 

Karen

 

“Tell me and I forget. Teach me and I remember. Involve me and I learn.” Benjamin Franklin

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A group of folk dancers rehearse prior to the arrival of Pope Francis at the military airport in Krakow, Poland, Wednesday. Alik Keplicz/AP

People enter the water for a morning swim at Copabacana beach in Rio de Janeiro, Brazil, Wednesday. The iconic Copacabana beach will be the starting point for the road cycling race, marathon swimming and triathlon competitions at the summer Olympics. Felipe Dana/AP

Market Closes for July 27^th, 2016

Market Index	Close	Change
Dow Jones	18472.17	-1.58   -0.01%
S&P 500	2166.58	-2.60   -0.12%
NASDAQ	5139.810	+29.763   +0.58%
TSX	14546.54	-3.46
		-0.02%

International Markets

Market Index	Close	Change
NIKKEI	16664.82	+281.78
		+1.72%
HANG SENG	22218.99	+89.26
		+0.40%
SENSEX	28024.33	+47.81
		+0.17%
FTSE 100	6750.43	+26.40
		+0.39%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.076	1.122
CND. 30 Year Bond	1.688	1.732
U.S.    10 Year Bond	1.4976	1.5594
U.S. 30 Year Bond	2.2110	2.2801

Currencies

BOC Close	Today	Previous
Canadian $	0.75918	0.75828
US $	1.31721	1.31877
Euro Rate 1 Euro=		Inverse
Canadian $	1.45625	0.68669
US $	1.10556	0.90452

Commodities

Gold	Close	Previous
London Gold Fix	1329.00	1323.00
Oil	Close	Previous
WTI Crude Future	41.92	42.92

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian shares ended little changed as energy producers slumped to the lowest level in three months, while gold miners rallied on the prospect for lower U.S. interest rates for longer.

     The S&P/TSX Composite Index fell less than one point to 14,546.54 at 4 p.m. in Toronto, paring earlier losses of as much as 0.4 percent after the Federal Reserve reiterated a gradual approach to tightening. Trading volume was 5.9 percent lower than the 30-day average. The benchmark is up 12 percent in 2016, making Canadian stocks more expensive than their U.S. peers, with a price-earnings ratio of 22.4 for the S&P/TSX, about 11 percent higher than the S&P 500 Index.

     The Fed’s decision bolstered the price of gold, which tends to be a more attractive investment as a store of value against a weaker U.S. dollar in a low-rate environment. Futures prices rose 0.5 percent in New York to settle at $1,334.50 an ounce. Barrick Gold Corp. and Goldcorp Inc. added at least 3.1 percent. Raw-materials producers jumped 2.8 percent as a group.

     The gain in mining stocks extends a rally for the group this year to 60 percent, the best year-to-date performance for the group in at least 30 years, according to data compiled by Bloomberg. 

     Suncor Energy Inc. and Cenovus Energy Inc. retreated at least 1 percent to lead energy producers lower as five of 10 industries in the S&P/TSX retreated. Royal Bank of Canada fell 1.2 percent as financial services companies also fell.

     Crude for September delivery declined 2.3 percent in New York to settle at $41.92 a barrel. Inventories rose 1.67 million barrels, according to the Energy Information Administration, while analysts had forecast a 2 million barrel decline. Oil has slipped 18 percent since early June.

     Mining and energy stocks have propelled Canada to the second-best performance among developed markets, trailing only New Zealand. The S&P/TSX has joined global markets extending gains this month following a brief post-Brexit vote swoon amid a stretch of solid U.S. economic data and improving earnings.

     Global markets ended the day higher, as a gauge of developed and developing markets closed at the highest in eight months. Japan’s Prime Minister Shinzo Abe announced a 28 trillion yen ($265 billion) fiscal stimulus package.

     Investors also weighed earnings from Canadian companies. Intact Financial Corp. added 1.2 percent, closing at the highest level in nine months. The insurer reported second-quarter operating earnings well ahead of analysts’ estimates, even after accounting for a significant loss from the Fort McMurray, Alberta wildfires earlier in the year that forced the evacuation of the town. 

     Gildan Activewear Inc. slumped 5.6 percent, the most since October, after trimming the top end of its 2016 guidance. And CGI Group Inc. climbed 7.2 percent to lead technology stocks higher as third-quarter earnings topped estimates.

US

     New York (AP) — Stocks ended Wednesday’s trading slightly lower as shares of energy companies and consumer goods makers outweighed gains in technology companies like Apple.

     Investors also worked through the Federal Reserve’s latest policy statement. The Fed didn’t make any changes to interest rates but left the door open for increases later this year.

     The Dow Jones industrial average fell 1.58 points, less than 0.1 percent, to 18,472.17. The Standard & Poor’s 500 index lost 2.60 points, or 0.1 percent, to 2,166.58. The technology- heavy Nasdaq composite rose 29.76 points, or 0.6 percent, to 5,139.81.

     Apple jumped $6.36, or 6.6 percent, to $103.03. While the company reported lower revenue and iPhone sales, it still earned $10.5 billion last quarter, well above analysts’ estimates. Apple had been one of the biggest drags on the market this year as investors became concerned that its years of massive growth were coming to an end. Apple nearly erased its loss for the year.

     “The expectations for Apple were abysmal,” said Daniel Morgan, a portfolio manager at Synovus Trust Company who owns Apple shares. “Everyone is waiting for later this year, when Apple releases new products.”

     Apple, one of the 30 stocks in the Dow Jones industrial average, is the first of the major technology companies to report this week. Investors got results from Facebook after the close of trading Wednesday, which will be followed by Amazon and Google later this week.

     Coca-Cola, another component of the Dow, fell $1.48, or 3.3 percent, to $43.40 after the beverage giant trimmed its sales outlook for the year, citing weak demand in China and other international markets. Coke has faced headwinds in the U.S. and internationally as more consumers move away from sugary drinks.

     Twitter, which also reported its results late Tuesday, plunged $2.68, or 15 percent, to $15.77. The social media company reported another loss and said user adoption rates continue to slow. Roughly 313 million people regularly used Twitter last quarter, a fraction of the 1.6 billion people who use Facebook regularly.

     “It’s really now becoming a question on whether Twitter as a concept is something financially viable,” Morgan said. “Fundamentally, is this going to work?”

     The Federal Reserve voted to keep interest rates unchanged while noting that “near-term risks” to the economy have “diminished.” The Fed said the U.S. job market has rebounded, with strong job gains in June following weak growth in May. Investors will get another policy decision by one of the world’s central banks on Friday, when the Bank of Japan is likely to vote to increase its economic stimulus efforts.

     Benchmark U.S. crude fell $1, or roughly 2.3 percent, to close at $41.92 a barrel on the New York Mercantile Exchange, continuing its month-long decline. Brent crude, used to price international oils, fell $1.40 to $43.47 a barrel in London.

     Energy stocks were among the biggest decliners as oil prices fell. Marathon Oil, Transocean and Hess Corporation all fell roughly 4 percent or more.

     Bond prices rose. The yield on the 10-year Treasury note fell to 1.51 percent from 1.56 percent, most of the gains coming after the Fed’s announcement. The dollar rose to 105.23 yen from 104.63 yen and the euro fell to $1.1054 from $1.0986.

     In metals, the price of gold rose $5.90 to $1,326.70 an ounce, silver rose 31 cents to $20 an ounce and copper fell 4 cents to $2.19 a pound.

     In other energy commodities, heating oil fell 3 cents to $1.30 a gallon, wholesale gasoline futures fell 2 cents to $1.32 a gallon and natural gas fell 4 cents to $2.67 per 1,000 cubic feet.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

 

“One of the most sincere forms of respect is actually listening to what another has to say.” Bryant H. McGill

 

As ever,

 

Karen

 

“Patience is the companion of wisdom.” Saint Augustine

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Solar Impulse 2, a solar powered plane, arrives at an airport in Abu Dhabi, United Arab Emirates, on Tuesday. Reuters

 

On Monday, street performers dance along Copacabana Beach in Rio de Janeiro, less than two weeks before the start of the Rio 2016 Olympic Games. Stoyan Nenov/Reuters

Market Closes for July 26^th, 2016

Market Index	Close	Change
Dow Jones	18473.75	-19.31   -0.10%
S&P 500	2169.17	+0.69   +0.03%
NASDAQ	5110.047	+12.418   +0.24%
TSX	14546.10	+48.00
		+0.33%

International Markets

Market Index	Close	Change
NIKKEI	16383.04	-237.25
		-1.43%
HANG SENG	22129.73	+136.29
		+0.62%
SENSEX	27976.52	-118.82
		-0.42%
FTSE 100	6724.03	+13.90
		+0.21%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.122	1.107
CND. 30 Year Bond	1.732	1.727
U.S.    10 Year Bond	1.5594	1.5731
U.S. 30 Year Bond	2.2801	2.2872

Currencies

BOC Close	Today	Previous
Canadian $	0.75828	0.75658
US $	1.31877	1.32173
Euro Rate 1 Euro=		Inverse
Canadian $	1.44874	0.69026
US $	1.09855	0.91029

Commodities

Gold	Close	Previous
London Gold Fix	1323.00	1313.15
Oil	Close	Previous
WTI Crude Future	42.92	42.38

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rebounded from the biggest slump in a month with the biggest gain in two weeks amid corporate earnings and a rally in gold producers.

     The S&P/TSX Composite Index added 0.4 percent to 14,550 at 4 p.m. in Toronto, the biggest gain since July 12. A rout in energy shares dragged the index lower by 0.7 percent on Monday. The benchmark is now up 12 percent in 2016, making Canadian stocks more expensive than their U.S. peers, with a price- earnings ratio of 22.4 for the S&P/TSX, about 11 percent higher than the S&P 500 Index.

     Raw-materials producers climbed 2.2 percent as a group, the biggest contributor to gains in the S&P/TSX as six of 10 industries increased on trading volume 17 percent lower than the 30-day average. Gold prices pushed higher as the dollar fell ahead of the July interest rate decision at the Federal Reserve. Traders are pricing in only a 10 percent chance of a rate increase in July, according to data compiled by Bloomberg.

     The gain in mining stocks extends a rally for the group this year to 56 percent, the best year-to-date performance for the group in at least 30 years, according to data compiled by Bloomberg. Mining and energy stocks have propelled Canada to the second-best performance among developed markets, trailing only New Zealand. It’s a far cry from last year, when the S&P/TSX was one of the worst-performing markets in the world, slumping the most since the 2008 Financial Crisis.

     Canadian National Railway slipped 0.5 percent. While the nation’s largest railroad reported adjusted earnings of C$1.11 a share ahead of the C$1.06 average of estimates compiled by Bloomberg, revenue fell 9.1 percent, short of analysts’ forecasts. The company cut jobs and parked locomotives in the quarter in the face of weakening freight demand.

     Canopy Growth Corp. slipped 1.2 percent, trading near the highest level in eight months in its first day of trading on the Toronto Stock Exchange after graduating from the junior Venture exchange. The marijuana grower surged 19 percent in the past two days, reversing losses for the year.

     Element Financial Corp. lost 3.6 percent, the biggest decline in a month. The equipment finance firm agreed Monday to split into two companies.

US

 By Dani Burger

     (Bloomberg) — Earnings from McDonald’s Corp. to Caterpillar Inc. tugged U.S. stocks in opposite directions, leaving benchmark indexes little changed as investors turned attention to Wednesday’s Federal Reserve policy decision.

     Housing data that showed the biggest gain in new-home sales in eight years bolstered optimism in the economy and raised the specter that the Fed may strike a more hawkish tone on rates after its two-day meeting. Apple Inc. is slated to report results after the close of trading. Twitter Inc. sank in late trading after forecasting revenue below estimates and amid signs of a struggle to win more ads.

     The S&P 500 Index rose less than one point to 2,169.18 at 4 p.m. in New York, narrowly avoiding its first two-day losing streak since the Brexit secession vote a month ago. The index has rallied 8.4 percent in that time after a 5.3 percent rout in the two days following the U.K.’s shock decision to secede from the European Union. The gauge retreated on Monday from a record, with energy producers sliding amid a decline in oil prices. The Dow Jones Industrial Average slipped 0.1 percent to 18,473.61 on Tuesday, and the Russell 2000 Index of small caps added 0.6 percent.

     “I don’t get the sense that the stock market will rocket higher any time soon,” said Mark Heppenstall, the Horsham, Pennsylvania-based chief investment officer of Penn Mutual Asset Management. His firm oversees about $20 billion. “It’s hard to make case to push the numbers up from here. A lot of those way of boosting earnings are well played out. You’ll have to see earnings that will drive market from this point as opposed to financial engineering or cost cutting.”

     The rally that pushed the S&P 500 up for four straight weeks has faltered as the Fed kicks off a two-day meeting, with economists estimating the central bank will keep borrowing costs unchanged at its conclusion on Wednesday. Traders will also focus on earnings, with 45 companies in the S&P 500 scheduled to report results on Tuesday, including Apple Inc.

     Traders are pricing in less than even odds of a rate increase until at least March 2017. While recent economic data have beaten forecasts, Chair Janet Yellen and her colleagues have emphasized a gradual pace of tightening. On Tuesday, data showed consumer confidence fell by less than forecast, while new-home sales rose in June to the highest level in more than eight years. Home prices in 20 U.S. cities rose less than projected in May from a year earlier.

     After recovering from its losses following the U.K. vote to leave the European Union, the S&P 500 went on to post seven records in 10 days. Optimism that corporate earnings would help support stock prices has pushed the gauge up 19 percent from its low in February, with analysts easing their estimates for second-quarter profit declines at S&P 500 companies to 4.5 percent. The S&P 500 is now up 6.1 percent for the year, one of the best performances among developed-market equities.

     Trading Tuesday was volatile in volume in line with the 30- day average. The S&P 500 reversed morning gains after rising to 2,173.54, coming within about a point of its record close on Friday. It slipped about 13 points in 90 minutes, leveling off around yesterday’s intraday low of 2,161.95. The tumble in the S&P 500 coincided with a period of extreme volume in futures that track the benchmark gauge. Volume in so-called e-mini contracts averaged more than 21,000 a minute between 10:55 a.m. and 10:57 a.m. New York time, compared with an average of about 1,700 in the three minutes prior. The gauge subsequently erased those losses.

     Meanwhile, the earnings season has delivered more optimistic outlooks, as the ratio of companies raising their forecasts jumped toward a 12-year high, data from Credit Suisse Group AG show. Nearly 90 percent of companies in the S&P 500 Index that have changed previously disclosed expectations for future earnings have raised the target, among those that reported results between June 1 and July 21, according to data compiled by the bank.

     “This market seem more devoid of earnings reactions than I can remember in a while,”  Brian Frank, portfolio manager at Key Biscayne, Florida-based Frank Capital Partners LLC, said by phone.“ It’s all about if central banks are going to do more QE, buying bonds or issuing perpetual zero coupon bonds in Japan. It’s all macro.”

     In Tuesday’s trading, five of the S&P 500’s 10 main industries moved lower, led by phone and utility companies, which fell as much as 1.5 percent. Verizon Communications Inc. lost 1.9 percent after it posted wireless subscriber gains that missed analysts’ estimates. 3M Co., after cutting its outlook for sales growth due to pressure from a strong U.S. dollar, dropped 1.1 percent.

     Among the biggest declines in the Dow, McDonald’s fell 4.5 percent after reporting same-store sales growth that missed analysts’ estimates. Amid concerns that the U.S. fast-food industry is heading into a recession, Darden Restaurants Inc., Chipotle Mexican Grill Inc. and Yum! Brands Inc. fell as much as 3.8 percent.

     Technology companies in the S&P 500 gained 0.4 percent, closing at a 16-year high. The group was boosted by Analog Devices Inc., which announced it will acquire Linear Technology Corp. for about $14.8 billion. Shares in Analog rose 3.9 percent, while Linear posted a 29 percent gain. Also moving on corporate news, Texas Instruments Inc. jumped after the largest maker of analog semiconductors forecast revenue and profit that may beat analysts’ estimates.

     Netflix Inc. extended gains from Monday, rallying 4.3 percent after a director, Jay Hoag, disclosed a 600,000 share purchase in the company.

Have a wonderful evening everyone.

 

Be magnificent!

 

 

“Good, better, best. Never let it rest. ‘Til your good is better and your better is best.” St. Jerome

 

As ever,

 

Karen

 

 

“It always seems impossible until its done.” Nelson Mandela

 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

On Monday, painters work on a mural created by Brazilian artist Eduardo Kobra that will cover nearly 3,000 square meters of wall space and depict indigenous faces from five continents as a welcome to visitors attending the Rio 2016 Olympic Games in Rio de Janeiro, Brazil. Stoyan Nenov/Reuters

SoftBank’s ‘pepper’ robots, dressed in different bank uniforms, are displayed during a news conference in Taipei, Taiwan, on Monday. Tyron Siu/Reuters

Market Closes for July 25^th, 2016

Market Index	Close	Change
Dow Jones	18493.06	-77.79   -0.42%
S&P 500	2168.48	-6.55   -0.30%
NASDAQ	5097.628	-2.534   -0.05%
TSX	14498.10	-102.56
		-0.70%

International Markets

Market Index	Close	Change
NIKKEI	16620.29	-6.96
		-0.04%
HANG SENG	21993.44	+29.17
		+0.13%
SENSEX	28095.34	+292.10
		+1.05%
FTSE 100	6710.13	-20.35
		-0.30%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.107	1.097
CND. 30 Year Bond	1.727	1.731
U.S.    10 Year Bond	1.5731	1.5645
U.S. 30 Year Bond	2.2872	2.2809

Currencies

BOC Close	Today	Previous
Canadian $	0.75658	0.76417
US $	1.32173	1.30861
Euro Rate 1 Euro=		Inverse
Canadian $	1.45292	0.68827
US $	1.09926	0.90970

Commodities

Gold	Close	Previous
London Gold Fix	1313.15	1320.75
Oil	Close	Previous
WTI Crude Future	42.38	43.49

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks fell the most in a month, dropping from the highest level in a year to halt a three-day advance as commodities producers retreated with crude and gold.

     The S&P/TSX Composite Index lost 0.7 percent to 14,498.10 at 4 p.m. in Toronto. The benchmark is up 11 percent in 2016, making Canadian stocks more expensive than their U.S. peers, with a price-earnings ratio of 22.3 for the S&P/TSX, about 11 percent higher than the S&P 500 Index.

     Raw-materials and energy producers tumbled at least 1.9 percent, the two biggest laggards among 10 industries in the S&P/TSX. They account for about one-third of the benchmark by weighting. Suncor Energy Inc. and Barrick Gold Corp. fell at least 3 percent.

     Oil dropped to the lowest level in three months, down 2.4 percent in New York to extend losses after a weekly decline last week. U.S. producers increased drilling for a fourth week, even as government data points to U.S. supplies remaining ample as the summer driving season comes to a close. The S&P/TSX Energy Index dropped to the lowest in a month.

     Gold prices also fell, extending the first back-to-back weekly loss since May. Global markets have rallied following a brief swoon after the U.K. voted to leave the European Union, while strengthening U.S. economic data has prompted traders to increase bets of a rate increase.

     Today’s decline in raw-material shares pares the rally this year to 53 percent, which remains the best such performance for the group in at least 30 years, according to data compiled by Bloomberg. Mining and energy stocks have propelled Canada to the second-best performance among developed markets, trailing only New Zealand. It’s a far cry from last year, when the S&P/TSX was one of the worst-performing markets in the world, slumping the most since the 2008 Financial Crisis.

     Valeant Pharmaceuticals International Inc. added 0.6 percent, rebounding from a two-day slide. The struggling drugmaker said Friday it had received a letter from the Food and Drug Administration over its application for an eye drop medication due to some deficiencies at a manufacturing facility.

US

By Jeremy Herron and Bailey Lipschultz

     (Bloomberg) — U.S. stocks declined as crude oil slid to a three-month low, while a stronger dollar weighed on metals ahead of central bank meetings in the U.S. and Japan this week.

     The S&P 500 Index slipped from a record as energy shares paced declines, with U.S. oil down 2.4 percent to below $44 a barrel. Nine of 10 main groups in the gauge retreated amid trading volumes that were 18 percent below average. The Treasury’s auction of two-year notes lured the weakest demand since 2008 on speculation the Federal Reserve will acknowledge signs of economic strength on Wednesday. Gold extended its first back-to-back weekly drop since May as the dollar gained against high-yielding currencies.

     Global equities edged lower before the central-bank policy meetings and as investors awaited a slew of corporate results. The pullback came after the S&P 500 advanced to a fresh record Friday, as strong U.S. economic data spurred traders to boost bets on the Fed raising interest rates by the end of 2016. While the Fed will probably keep borrowing costs on hold this week, economists predict the Bank of Japan will bolster stimulus. The European Central Bank last week said it would be ready and able to act if needed. 

     “This is a small drop off from the record climb after recovering those losses from Brexit,” said Todd Lowenstein, director of research at Highmark Capital Management Inc. in Montecito, California. “There’s euphoria from the potential of more central bank easing. Along with higher-than-expected earnings, that led markets higher and now we’ve had a chance to digest those gains and we’re seeing a slight selloff.”

     The S&P 500 lost 0.3 percent to 2,168.48 as of 4 p.m. in New York, with energy companies down 2 percent as a group and industrial shares falling 0.6 percent. Yahoo! Inc. fell 2.7 percent after agreeing to sell its main web businesses to Verizon Communications Inc., while Verizon fell 0.4 percent.

     Roper Technologies Inc. dropped 5.8 percent, the most in the S&P 500, after missing profit estimates. Micron Technology Inc. jumped 6 percent after the company adopted a so-called poison pill, a rights issue that can make a takeover more difficult to achieve.

     In Europe, the Stoxx 600gauge pared gains to close 0.2 percent higher, with the drop in oil prices weighing on energy producers. The benchmark came within 1 percent of erasing losses incurred after the Brexit vote, after figures showed a measure of German business sentiment slipped less than expected in July. The gains were short-lived, however, with the rebound stalling for a third day after the index hit a one-month high last week.

     In Asia, Nintendo Co. shares plunged by the most since 1990 after the company said late Friday that the financial benefits from the worldwide hit Pokemon Go will be limited. The stock sank 18 percent to 23,220 yen at the close in Tokyo, the maximum one-day move allowed by the exchange, wiping out 708 billion yen ($6.7 billion) in market value.

     Futures on Asian equity indexes mostly signaled losses for Tuesday, with contracts on Japan’s Nikkei 225 Stock Average down at least 0.2 percent in both Osaka and Chicago. Futures on stock gauges in South Korea and Hong Kong dropped more than 0.1 percent, while those on Australia’s S&P/ASX 200 Index were little changed.

     The dollar advanced against about eight of its 16 major peers, climbing at least 0.7 percent against Mexico’s peso and the Canadian dollar. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 key currencies, added 0.1 percent to its highest point since May 31.

     “Crude is under pressure so that’s a big factor,” said Bipan Rai, senior foreign-exchange and macro strategist at Canadian Imperial Bank of Commerce in Toronto. “But we’re also starting to see the market become more cognizant of the fact that the Fed could be more hawkish than expected, which is leading to a firmer dollar.”

     Brazil’s real joined a retreat in emerging-market currencies Monday as policy makers intervened and economists cut forecasts for the Latin American nation’s economy amid uncertainty over budget plans. Turkey’s lira climbed 1 percent, the most among 31 major currencies.

     The yen reversed an earlier retreat to end Monday up 0.3 percent at 105.81 per dollar.

     Oil dropped to its lowest point since April after U.S. producers increased drilling for a fourth week, even as the market contends with abundant stockpiles. West Texas Intermediate crude futures slipped to $43.13 a barrel after sliding 1.3 percent on Friday to its lowest settlement since May 9.

     Rigs targeting oil in the U.S. rose to 371, capping the longest run of gains since August, according to data from Baker Hughes Inc. Money managers also added the most bets in a year on falling WTI prices during the week ended July 19, according to Commodity Futures Trading Commission figures.

     Zinc paced gains in industrial metals, trading near the highest level in more than a year on prospects for a supply deficit and as central banks pledge to back economic stability, boosting the metal’s demand outlook.

     Precious metals declined, with gold futures losing 0.7 percent to settle at $1,322.90 an ounce as the buoyant equity markets and revived expectations for a potential U.S. rate hike this year hurt demand. Silver futures retreated 0.4 percent.

     Benchmark two-year bond yields jumped to a one-month high as the Treasury sold $26 billion of the maturity at steeper yields than indicated in pre-auction trading. Yields on Treasuries maturing in a decade were little changed at 1.58 percent. The Treasury has $103 billion of planned offerings of coupon-bearing securities this week.

     Two-year German notes held onto their longest slide since August as data indicated that Europe’s biggest economy may be weathering the fallout from last month’s Brexit vote.

     A month after British voters opted to leave the European Union, U.K. bonds are yielding the least in 16 years relative to their U.S. counterparts, reflecting speculation that the Bank of England will loosen policy to mitigate the economic impact of the vote. The extra yield, or spread, that investors get for holding U.S. two-year notes instead of similar-maturity gilts was 58 basis points, the most since May 2000, based on closing Bloomberg generic prices.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“The best preparation for tomorrow is doing your best today.” H. Jackson Brown, Jr.

 

As ever,

 

Karen

 

“Integrity is doing the right thing, even when no one is watching.” C. S. Lewis

 

 

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:

After three years of trying to balance his day job with his musical ambitions, a suburban family man with an office job named Declan Patrick McManus finally makes his breakthrough on this date in 1977 with the release of his debut album, My Aim Is True. The world now knows him better by his stage name, Elvis Costello.

Nothing softeneth the Arrogance of our Nature like a

 Mixture of some Frailties.  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

The breakaway group speeds downhill during the nineteenth stage of the Tour de France cycling race over 146 kilometers (90.7 miles) from Albertville and to Saint-Gervais Mont Blanc, France, on Friday. Christophe Ena/AP

 

Britain’s Prince George is seen with the family dog, Lupo, in this photograph taken in mid-July at his home in Norfolk and released by Kensington Palace on Friday to mark his third birthday. Matt Porteous/Duke and Duchess of Cambridge/Reuters

Market Closes for July 22^nd, 2016

Market Index	Close	Change
Dow Jones	18570.85	+53.62   +0.29%
S&P 500	2175.03	+9.86   +0.46%
NASDAQ	5100.164	+26.260   +0.52%
TSX	14600.66	+34.83
		+0.24%

International Markets

Market Index	Close	Change
NIKKEI	16627.25	-182.97
		-1.09%
HANG SENG	21964.27	-36.22
		-0.16%
SENSEX	27803.24	+92.72
		+0.33%
FTSE 100	6730.48	+30.59
		+0.46%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.097	1.106
CND. 30 Year Bond	1.731	1.746
U.S.    10 Year Bond	1.5645	1.5526
U.S. 30 Year Bond	2.2809	2.2873

Currencies

BOC Close	Today	Previous
Canadian $	0.76117	0.76417
US $	1.31376	1.30861
Euro Rate 1 Euro=		Inverse
Canadian $	1.44193	0.69351
US $	1.09756	0.91111

Commodities

Gold	Close	Previous
London Gold Fix	1320.75	1321.15
Oil	Close	Previous
WTI Crude Future	43.49	43.95

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks edged higher to cap a fourth weekly advance, pushing the benchmark index to the highest level in a year, as investors weighed contrasting earnings from electronics company Celestica Inc. and lumber producer West Fraser Timber Co.

     The S&P/TSX Composite Index climbed 0.2 percent to 14,600.66 at 4 p.m. in Toronto, the highest since July 17, 2015. The benchmark is up 12 percent in 2016, making Canadian stocks more expensive than their U.S. peers, with a price-earnings ratio of 22.4 for the S&P/TSX, about 11 percent higher than the S&P 500 Index.

     Mining stocks have propelled Canada to the second-best performance among developed markets, trailing only New Zealand. The group has rallied for a 56 percent increase amid a rebound in gold prices, the best such performance in at least 30 years, according to data compiled by Bloomberg.

     Financial services companies added 0.3 percent Friday, led by gains in insurers Manulife Financial Corp. and Sun Life Financial Inc. Industrials and consumer discretionary stocks also rose as eight of 10 industries in the S&P/TSX advanced.

     Health-care stocks dropped 4.2 percent, the biggest laggard in the S&P/TSX. Valeant Pharmaceuticals International Inc. lost 6.2 percent after receiving a letter from the Food and Drug Administration over its application for an eye drop medication. Some deficiencies were found after an inspection of Valeant unit Bausch + Lomb’s manufacturing facility in Tampa, Florida.

     Raw-materials producers ended the day flat, paring earlier losses. West Fraser Timber added 0.1 percent, after falling as much as 5.2 percent, as second-quarter earnings fell short of analysts’ estimates. Barrick Gold Corp. added 1.2 percent.

     Celestica jumped 8.5 percent, the most since January, after the company reported a third-quarter revenue outlook ahead of estimates. The high end of its sales guidance also exceeded the highest analyst estimate.

     Canadian retail sales advanced in May for a second month, rising 0.2 percent after a gain of 0.8 percent in April. Sales climbed at gas stations even as car sales declined. Combined with strong gains in January and February, retail sales this year are up 4.9 percent, the best start to a year in six years. The inflation rate was unchanged in June.

US

By Dani Burger and Bailey Lipschultz

     (Bloomberg) — U.S. stocks rose, sending the S&P 500 Index to a fresh record, as investors showed confidence corporate earnings will not derail a rally that’s headed toward a fifth week.

     Equities rebounded as some of the week’s best performers were among the biggest contributors to Friday’s climb. Microsoft Corp. and Biogen Inc. added to their strongest weekly increases since at least March. Verizon Communications Inc. rose 1.3 percent as it’s said to be near a deal to buy Yahoo! Inc. Gains were tempered by disappointment that followed earnings from General Electric Co., Honeywell International Inc. and Apple Inc. supplier Skyworks Solutions Inc.

     The S&P 500rose 0.5 percent to 2,175.03 at 4 p.m. in New York, a seventh all-time high in the last 10 sessions after going more than 13 months without one. The benchmark gained 0.6 percent this week, the smallest such advance in its four-week run. The Dow Jones Industrial Average added 53.62 points, or 0.3 percent, to 18,570.85, and the Nasdaq Composite Index increased 0.5 percent. About 5.6 billion shares traded hands on U.S. exchanges, 21 percent below the three-month average.

     “It’s been a bit of a mixed bag, but you have to say that the earnings reports have been positive overall,” said Chuck Self, chief investment officer of iSectors LLC, an Appleton, Wisconsin-based asset manager. “There’s certainly no trend to the negative in the earnings reports at all. There is a question of valuations out there and with interest rates so low, it’s hard to figure out whether it’s true to value.”

     The S&P 500 closed with the longest stretch of weekly gains since March. The benchmark on Wednesday posted its sixth record in eight sessions, while the Dow rose for nine straight days, its longest rally since 2013, before halting the advance Thursday. Speculation that central banks will act to cushion any fallout from the U.K.’s vote to leave the European Union, and signs of a strengthening U.S. economy have propelled stocks higher in recent weeks.

     The earnings season has also spurred optimism corporate results will support equities near records. About a quarter of S&P 500 firms have released figures so far, of which 82 percent exceeded profit forecasts and 60 percent beat sales expectations. The flow is set to accelerate, with more than 180 companies scheduled to report results next week. Analysts forecast net income among S&P 500 members will slide 4.5 percent in the second quarter — improving from a 5.8 percent drop predicted a week ago — for a fifth straight decline.

     Among shares rising after reporting results, Stanley Black & Decker Inc. rallied 4.8 percent to a record as the toolmaker’s sales and profit topped estimates. The company also boosted its full-year earnings outlook. American Airlines Group Inc. rose 4 percent after its profit also exceeded predictions, helped by lower fuel prices. Southwestern Energy Co. surged 9.5 percent after posting a smaller loss than estimated, and the company boosted its production outlook.

     “We’ve had a major rise in global equities for almost a month, this has been accelerated during the earnings season,” said Christian Gattiker, head of research at Julius Baer Group in Zurich. “This is now a time of digesting these rises. Next week is really a bumper in terms of earnings, so everyone is looking at that. Overall it’s been a decent earnings season so far.”

     While better-than-forecast data has helped push stocks to fresh highs, it has also lifted odds of a Federal Reserve interest-rate increase. Traders are pricing in a 46 percent chance of higher borrowing costs by December, up from about 21 percent two weeks ago, and a less than 8 percent probability after the two-day equity selloff following the Brexit vote.

     “The turn in economic data is what the stock market move has been discounting, stronger economic news and better earnings in the second half of the year,” Doug Ramsey, the chief investment officer of Leuthold Weeden Capital Management LLC, said in an interview on Bloomberg TV. “The S&P held very firm and this move off the February lows, and even more recently off the Brexit lows has been very powerful and broad.”

     In Friday’s trading, the CBOE Volatility Index fell 5.7 percent to 12.02, sinking for the seventh time in eight days. The measure of market turbulence known as the VIX yesterday snapped its longest streak of declines in three months with its biggest climb since June 24, the day after the Brexit vote. A Goldman Sachs Group Inc. basket of most shorted shares briefly touched an eight-month high.

     Phone companies rose the most, followed by utilities as all of the S&P 500’s 10 main industries increased Friday. AT&T Inc. and Verizon climbed more than 1.3 percent, while AT&T had its best day in three weeks with analysts generally positive on its quarterly results. Industrials were little changed, erasing a decline after losing 0.9 percent.

     Managed-care stocks in the benchmark surged to a record, buoying the health-care group. Cigna Inc. rallied 4.1 percent to a six-month high, while Humana Inc., Aetna Inc. and Anthem Inc. added at least 1.8 percent. Cigna said it didn’t know when a deal to merge with Anthem would close, “if at all,” after regulators sued to block the transaction. Aetna and Humana promised to fight to defend their merger.      

      Among consumer-discretionary shares, Whirlpool Corp. rose 2.7 percent to the highest in three months as its quarterly results beat estimates and the appliance maker lifted the low end of its full-year profit view. Chipotle Mexican Grill Inc. advanced 5.8 percent, the strongest since January, despite missing estimates as the company continues to recover from an E. Coli outbreak last year.

     Advanced Micro Devices Inc. jumped 12 percent to a four- year high, after reporting quarterly revenue growth for the first time since 2014 and forecasting another increase in the current period.

     Technology companies rose, despite the group being home to the benchmark’s two biggest losers today. PayPal Holdings Inc. tumbled 6.8 percent on concern about the cost implications of a new agreement between the digital payments company and Visa Inc. Skyworks Solutions sank 8.6 percent, the most since October 2014, after its quarterly gross margin was short of estimates, even as revenue and profit beat predictions.

     GE and Honeywell weighed on the industrial group, losing more than 1.6 percent. GE sank after its quarterly report showed orders fell 2 percent in the second quarter — and tumbled 16 percent when excluding the effects of acquisitions and currency shifts. Honeywell cut its 2016 sales forecast amid sluggish global growth and lower demand for energy-related products and services.

 

Have a wonderful weekend everyone.

 

Be magnificent!

If you see God within every man and woman,

then you can never do harm to any man or woman.

If you see God in yourself, then you attain perfection.

The Bhagavad Gita

As ever,

 

Carolann

 

Old age is the most unexpected of all things

that happen to a man.

                      -Leon Trotsky, 1879-1940

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

I read Elie Wiesel’s obituary in the most recent edition of the Economist last night; I imagine you’ve read his works, especially Night.  The obituary ends with this reflection on his life, which I find very poignant:

“Nor did the questions ever stop.  His Talmud-studying childhood had been devoted to God, but where  had God been in the camps?  Why had He allowed Tzipora, the little golden-haired sister, to die for nothing?  Why had he caused old men to fall down from dysentery on forced marches, when they might have died peacefully in their beds?  Why had God created man, if only to abandon him?  What exactly did God need man for?

  Against the melancholy that never really lifted – for how could it ever do so? – he clung to the words “and yet”.  The sun set, and yet it rose again.  Delirium struck, and yet it passed.  He railed at God, and yet still strapped on his tefillin and recited his prayers as fervently as he had done on the day of his bar mitzvah.  For ritual, too, was part of memory.  And besides, how could he ever get closer to the mystery of God, unless he battered Him with his doubts?”

PHOTOS OF THE DAY

A man paints Olympic rings at Copacabana beach ahead of the 2016 Rio Olympics in Brazil on Thursday. Ueslei Marcelino/Reuters

Trampolinist Rosie MacLennan (l.) waves the Canadian flag next to Prime Minister Justin Trudeau after being named Canada’s flag-bearer for the opening ceremony of the 2016 Rio Olympics, following a ceremony on Parliament Hill in Ottawa, Ontario, Canada, on Thursday. Chris Wattie/Reuters

Market Closes for July 21^st, 2016

Market Index	Close	Change
Dow Jones	18517.23	-77.80   -0.42%
S&P 500	2165.17	-7.85   -0.36%
NASDAQ	5073.902	-16.031   -0.31%
TSX	14565.83	+32.26
		+0.22%

International Markets

Market Index	Close	Change
NIKKEI	16810.22	+128.33
		+0.77%
HANG SENG	22000.49	+118.01
		+0.54%
SENSEX	27710.52	-205.37
		-0.74%
FTSE 100	6699.89	-29.10
		-0.43%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.106	1.124
CND. 30 Year Bond	1.746	1.749
U.S.    10 Year Bond	1.5526	1.5801
U.S. 30 Year Bond	2.2873	2.3007

Currencies

BOC Close	Today	Previous
Canadian $	0.76417	0.76486
US $	1.30861	1.30744
Euro Rate 1 Euro=		Inverse
Canadian $	1.44297	0.69302
US $	1.10268	0.90688

Commodities

Gold	Close	Previous
London Gold Fix	1321.15	1315.90
Oil	Close	Previous
WTI Crude Future	43.95	45.05

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Telecommunications operator Rogers Communications Inc. rallied to a record, and gold producers rebounded to send Canadian stocks higher for a second day.

     The S&P/TSX Composite Index rose 0.2 percent to 14,565.83 at 4 p.m. in Toronto, in trading volume 26 percent lower than the 30-day average. Canadian stocks are more expensive than their U.S. peers, with a price-earnings ratio of 22.4 for the S&P/TSX, about 11 percent higher than the S&P 500 Index.

     Rogers added 3.9 percent, the most since October, after second-quarter earnings topped analysts’ estimates. Wireless customers jumped 171 percent. Rogers is the second-largest media and telecommunications company in Canada.

     Raw-materials producers increased 2.1 percent, rebounding after slumping the most since May yesterday. Barrick Gold Corp. and Kinross Gold Corp. added at least 2.7 percent as gold prices advanced from the lowest level in three weeks. The S&P/TSX Global Gold Index increased 2.9 percent, for its biggest gain since July 4.

     Mining stocks have fueled Canada to the second-best performance among developed markets this year with a 12 percent advance, trailing only New Zealand. The group has rallied 56 percent increase amid a rebound in gold prices, the best such performance for the group in at least 30 years, according to data compiled by Bloomberg.

     BlackBerry Ltd. added 1.6 percent for a second day of gains. The Waterloo, Ontario-based technology company is hosting a live event July 26, and is expected to unveil a new smartphone. Chief Executive Officer John Chen has said he’ll unveil two phones between now and March 2017.

     Encana Corp. climbed 3.6 percent, paring an earlier gain after touching the highest level since October, as the oil and gas producer posted an unexpected second-quarter operating profit and boosted its production outlook. Oilfield services company Mullen Group Ltd. jumped the most in more than a decade on earnings. The broader gauge of oil producers however slipped 0.1 percent as a group as crude prices fell in New York.

US

By Oliver Renick and Bailey Lipschultz

     (Bloomberg) — U.S. stocks declined as results from companies including Intel Corp. and Southwest Airlines Co. disappointed, casting doubt on whether corporate earnings will be healthy enough to sustain equities at all-time highs.

     Intelslipped 4 percent after reporting slower growth in its server-chip division. American Express Co. lost 1.6 percent as its revenue was short of predictions. Southwest Airlines tumbled 11 percent, weighing on shares of other carriers. Qualcomm Inc. gained 7.4 percent after it gave a forecast that beat analysts’ estimates, and EBay Inc. surged 11 percent after also raising its outlook.

     The S&P 500 fell 0.4 percent to 2,165.17 at 4 p.m. in New York, the most in two weeks after closing Wednesday at its sixth record in eight days. The Dow Jones Industrial Average declined 77.80 points, or 0.4 percent, to 18,517.23, halting its longest winning streak in more than three years. The Nasdaq Composite Index slipped 0.3 percent, and a gauge of volatility had its biggest gain in four weeks.

     “A lot of the rally has been post-Brexit relief, and I don’t really see anything out there, other than some decent earnings that’ve beaten, to validate the rally so far,” said Tom Siomades, head of Hartford Funds Investment Consulting Group in Radnor, Pennsylvania, whose firm oversees $76 billion. “The other thing is it’s summertime and it’s quiet. There’s really not much moving things other than earnings.”

     Since the earnings season started, profits and sales have mostly topped analysts’ estimates, fueling optimism that they’ll help support further stock gains. The S&P 500 has rebounded 18 percent from a 22-month low in February, and the Dow reached seven straight records in nine days of advances before ending its streak on Thursday.

     Among companies that reported results since yesterday’s close, General Motors Co. added 1.7 percent, rising to a two- month high after raising its profit outlook. United Rentals Inc. soared 9.2 percent, the most since October, as its earnings and sales exceeded predictions. Paint maker Sherwin-Williams Co. tumbled 6.9 percent after its earnings trailed estimates, and ad agency Interpublic Group of Cos. sank 5.9 percent, the worst in almost four years, after revenue missed forecasts.

     The CBOE Volatility Index rose 8.2 percent today to 12.74, snapping six days of declines, the longest streak in three months. The measure of market turbulence known as the VIX capped its biggest increase since the results of the Brexit vote, after closing yesterday at the lowest since August 2014. About 6.5 billion shares traded hands on U.S. exchanges, 10 percent below the three-month average.

     Speculation that the Federal Reserve will push back its timeline for interest-rate increases and signs of economic strength have propelled stocks higher, with the S&P 500 erasing its losses following the U.K.’s vote to leave the European Union. The European Central Bank left its interest rates unchanged at today’s meeting, while President Mario Draghi signaled policy makers will consider adding fresh stimulus later this year when it has a clearer picture of the Brexit impact.

     The U.S. looks insulated from the fallout so far. A Citigroup gauge that tracks the degree to which data are exceeding economist projections is at an 18-month high, helping to boost wagers on a Fed rate move this year. Traders are pricing in 45 percent odds of higher borrowing costs by this December, from just 12 percent two weeks ago.

     With policy makers and investors scrutinizing data, a report today showed the number of applications for unemployment benefits unexpectedly fell last week, reaching a three-month low. Another reading showed sales of previously owned homes climbed in June to the highest in more than nine years, while a separate measure of leading economic indicators rose last month more than economists forecast.

     Almost 80 percent of the S&P 500 companies that have reported results this earnings season have beaten profit forecasts, while 57 percent exceeded sales expectations. Analysts expect net income at the gauge’s members will slide 5.8 percent in the second quarter for a fifth straight decline, the longest streak since 2009. They project they’ll be little changed for the year.                

    “At these levels there’s some trepidation with investors with valuations extended,” Jim Davis, regional investment manager for The Private Client Group of U.S. Bank, said by phone. “The earnings season has been pretty friendly to the market so far, against the backdrop of economic data that has been positive which has helped the market take its mind off some of the other risks out there, mainly geopolitical ones.”

     Intel was the biggest drag on the S&P 500 amid concern its server-chip division — the company’s most profitable business – – won’t be able to make up for weakness in the PC market. Before Thursday, the stock had rallied 16 percent since the Brexit selloff to the highest since January.

     Technology shares in the benchmark slid amid Intel’s selloff, even as EBay countered with its strongest advance since October to a record, and Qualcomm jumped the most in four years. Its results were in contrast to Intel, showing the chipmaker is overcoming hurdles in China, while its rival Intel faces fresh headwinds.

     Southwest Airlines dragged down industrial stocks, retreating 11 percent, after saying heightened competition is driving down airfares more than in previous quarters as the industry’s capacity expansion outstrips demand. It was Southwest’s worst slide in more than seven years, and weighed on other carriers as Delta Air Lines Inc. and United Continental Holdings Inc. fell at least 3.4 percent. The Bloomberg U.S. Airlines Index dropped 4.8 percent, the steepest since June 27.

     The health-care group extended 11-month highs, led by Biogen Inc. as the drugmaker rallied 7.6 percent, the biggest climb in 16 months. Its profit beat estimates and the company announced a $5 billion share buyback program. Also, Chief Executive George Scangos said he’ll leave the company after a series of top managers were replaced and sales of its biggest product stalled.

     The Nasdaq Biotechnology Index climbed 1.3 percent, bolstered by deal activity. Relypsa Inc. jumped 59 percent after agreeing to be bought by Galenica AG, the owner of Switzerland’s biggest pharmacy network, for about $1.53 billion. Celgene Corp. rose 2.7 percent after a 2.3 percent rally yesterday.

     Joy Global Inc. added 20 percent after Komatsu Ltd., the second-biggest mining and construction equipment maker, agreed to buy the largest independent maker of underground-mining equipment for $2.89 billion. Joy’s share price fell 73 percent last year amid declines in commodity prices.

 

Have a wonderful evening everyone.

 

Be magnificent!

Your reactions are shared by all humanity.

Your brain is not yours,

it has evolved through centuries of time.

So we are questioning deeply whether there is an

individual at all.  We are the whole of humanity,

we are the rest of mankind.

Krishnamurti

As ever,

 

Carolann

 

Good luck is what happens when preparation meets opportunity, bad luck

is what happens when lack of preparation meets a challenge.

                                                                  -Paul Krugman, b. 1953

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Today is Moon Day: on this day in 1969 the first human landed on the Moon.  Edwin E. (Buzz) Aldrin, the second man to set foot on the Moon in the Apollo ll mission, wrote this on June 20^th, 1969:

The blue colour of my boot has completely disappeared now into this – still don’t know exactly what colour to describe this other than grayish cocoa colour.  It appears to be covering most of the lighter part of my boot….very fine particles…

  [Later] The Moon was a very natural and pleasant environment in which to work.  It had many of the advantages of zero gravity, but it was in a sense less lonesome than Zero G, where you always have to pay attention to securing attachment points to give you some means of leverage.  In one-sixth gravity, in the Moon, you had a distinct feeling of being somewhere….As we deployed our experiments on the surface we had to jettison things like lanyards, retaining fasteners, etc., and some of these we tossed away.  The objects would go away with a slow, lazy motion.  If anyone tried to throw a baseball  back and forth in that atmosphere he would have difficulty, at first, acclimatizing himself to that slow, lazy trajectory; but  I believe he could adapt to it quite readily…

  Odour is very subjective, but to me there was a distinct smell to the lunar material – pungent, like gunpowder or spent cap-pistol caps.  We carted a fair amount of lunar dust back inside the vehicle with us, either on our suits and boots or on the conveyor system we used to get boxes and equipment inside.  We did notice the odour right away.

PHOTOS OF THE DAY

A tractor harvests a row of lavender at Lordington Lavender farm in West Sussex, southeast England, on Wednesday. Andrew Matthews/PA/AP

A Widow Skimmer dragonfly rests on a stick in Hart Park in Bakersfield, Calif., on Tuesday. Casey Christie/The Bakersfield Californian/AP

Market Closes for July 20^th, 2016

Market Index	Close	Change
Dow Jones	18595.03	+36.02   +0.19%
S&P 500	2174.61	+10.83   +0.50%
NASDAQ	5089.934	+53.561   +1.06%
TSX	14531.58	+6.97
		+0.05%

International Markets

Market Index	Close	Change
NIKKEI	16681.89	-41.42
		-0.25%
HANG SENG	21882.48	+209.28
		+0.97%
SENSEX	27915.89	+128.27
		+0.46%
FTSE 100	6728.99	+31.62
		+0.47%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.124	1.075
CND. 30 Year Bond	1.749	1.708
U.S.    10 Year Bond	1.5801	1.5526
U.S. 30 Year Bond	2.3007	2.2669

Currencies

BOC Close	Today	Previous
Canadian $	0.76486	0.76822
US $	1.30744	1.30172
Euro Rate 1 Euro=		Inverse
Canadian $	1.43937	0.69475
US $	1.10091	0.90834

Commodities

Gold	Close	Previous
London Gold Fix	1315.90	1330.90
Oil	Close	Previous
WTI Crude Future	45.05	44.65

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian Pacific Railway Ltd. climbed to the highest level in eight months on earnings and a rebound in crude lifted energy producers to offset a slump in gold, as Canadian equities ended the day near the highest in a year.

     The S&P/TSX Composite Index rose 0.1 percent to 14,533.57 at 4 p.m. in Toronto. Trading volume was 5.9 percent lower than the 30-day average. Canadian stocks remain more expensive than their U.S. peers, with a price-earnings ratio of 22.4 for the S&P/TSX about 11 percent higher than the S&P 500.

     Canadian Pacific added 1.2 percent, closing at the highest level since December. The railroad operator reported second- quarter earnings that topped analysts’ estimates after reducing costs by cutting jobs and running longer trains.

     The railway stock drove a 1.9 percent gain in industrial shares as eight of the 10 main groups advanced. Energy producers rebounded as the price of crude erased losses to close 29 cents higher at $44.94 a barrel in New York. U.S. government data showed inventories dropped 2.34 million barrels last week, a record ninth straight decline.

     Canada is the second-best performing developed market in the world this year with a 12 percent advance, trailing only New Zealand. Mining stocks have fueled the resurgence, with a 53 percent increase amid a rebound in gold prices, the best such performance for the group in at least 30 years, according to data compiled by Bloomberg.

     The group slumped 3.9 percent Wednesday, the most since May, as copper led a drop among industrial metals. An advance in the dollar affects consumption as it reduces demand from other countries. Barrick Gold Corp. slumped 7.4 percent for the biggest drop among miners.

     Valeant Pharmaceuticals International Inc. added 4.6 percent for a third straight day of gains. The drugmaker got regulatory backing from the Food and Drug Administration for two new drugs.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks advanced, pushing to fresh records, as quarterly results from Microsoft Corp. and Morgan Stanley spurred optimism that corporate earnings can support further gains.

     Microsoft rallied to a three-month high after posting a better-than-predicted profit, boosting technology shares to the highest in almost 16 years. Morgan Stanley rose 2.1 percent as its earnings beat estimates, bolstered by a surprise gain in fixed-income trading revenue. Abbott Laboratories and Intuitive Surgical Inc. also gained on results that exceeded forecasts. Walt Disney Co. lost 1.3 percent after an analyst downgraded the shares.

     The S&P 500 Indexrose 0.4 percent to 2,173.02 at 4 p.m. in New York, its sixth all-time high in eight days. The Dow Jones Industrial Average gained 36.02 points, or 0.2 percent, to 18,595.03. The gauge advanced for a ninth session, the longest since 2013, to post a seventh consecutive record. The Nasdaq Composite Index increased 1 percent. About 6.2 billion shares traded hands on U.S. exchanges, 14 percent below the three-month average.

     “Markets have been resilient,” Quincy Krosby, a market strategist at Prudential Financial Inc. in Newark, New Jersey, said by phone. “Much of the data coming in and earnings announcements have been better than expected. The market is looking for clarity that companies are more positive about the second half of the year. We’ve been in earnings recession for so many quarters we’re now thinking about earnings as whether they’re ‘less bad.”’

     U.S. shares have recovered their losses following the U.K.’s decision to leave the European Union amid signs of strength in the economy and speculation that the Federal Reserve will take its time raising interest rates. Traders are pricing in less than even odds of a hike until March 2017, though bets on a move by this December have climbed to 48 percent from just 12 percent two weeks ago.

     The S&P 500 is up 6.3 percent in 2016 after a rebound from the worst-ever start to a year sparked by worries that slowing growth in China would spread and oil’s plunge to a 12-year low. Anxiety over the U.K.’s Brexit vote briefly derailed stocks last month before assurances that major central banks would act to counter ill effects from Britain’s secession helped usher equities to all-time highs.

     With stocks continuing to climb, investor nervousness has cooled. The CBOE Volatility Index, a measure of market turbulence known as the VIX, fell 1.7 percent today to 11.77, the lowest since August 2014.                        

     Of the S&P 500 firms that have released results so far this season, 78 percent beat earnings estimates and 61 percent topped sales projections. Still, analysts forecast profit at its members will drop 5.8 percent in the second quarter, which would make it a fifth straight decline, the longest streak since 2009. General Motors Co. and AT&T Inc. are among 34 companies set to release results on Thursday.

     “Microsoft has for a long time has been one of the bellwether stocks for the U.S. — it is reflective to some extent of the whole economy and can feed through,” said Frances Hudson, an Edinburgh-based global thematic strategist at Standard Life Investments. “I am seeing more greens than reds in terms of earnings beats, which seems relatively positive. Earnings season is definitely the main event right now.”

     In Wednesday’s trading, technology shares were the strongest performers among the S&P 500’s 10 main industries, led by Microsoft’s best rally since January. The tech group rose to the highest since September 2000. Health-care stocks climbed to their loftiest level in 11 months, bolstered by Intuitive Surgical’s rise to a record. Stocks perceived as defensive lagged, with utilities, consumer staples and phone companies declining.

     Joining Microsoft to support the rally in tech, Cisco Systems Inc. added 2.4 percent to take the network-equipment maker’s shares to the highest in more than eight years. Visa Inc. rose 0.8 percent to a five-week high before its earnings report scheduled for tomorrow, and Facebook Inc. advanced 1.1 percent to a record.

     Chipmakers climbed to their best levels in 15 years. Intel rallied 1.5 percent before its earnings report, while Micron Technology Inc. and Skyworks Solutions Inc. gained at least 1.7 percent. Marvell Technology Group Ltd. jumped 14 percent, the strongest in seven years, after its profit beat estimates. All 30 members of the Philadelphia Stock Exchange Semiconductor Index advanced more than 0.2 percent.

     Managed-care companies recovered from declines yesterday after Aetna Inc. said it’s ready to go to court if necessary to proceed with its $37 billion takeover of Humana Inc. Humana rose 3.3 percent, mostly reversing a slide Tuesday prompted by a report that regulators were poised to file lawsuits to block the deal. Aetna increased 1.2 percent, and Anthem Inc., which plans to merge with Cigna Corp., added 2.6 percent.

     Earnings news also helped industrials extend all-time highs, amid the sector’s 10th gain in 11 days. Cintas Corp. surged 9.7 percent to a record, its biggest climb in five years. The uniform company raised its profit outlook after quarterly results were better than predicted. Illinois Tool Works Inc. added 2.8 percent after also lifting its earnings forecast on better-than-estimated results.

     Weighing on the consumer-staples group, Kellogg Co. sank 5.4 percent, the worst drop in almost two years, amid diminished speculation over a potential takeover offer. Campbell Soup Co. slid 3.1 percent after lowering its 2016 sales forecast.

     Energy producers slipped 0.2 percent, even as crude rebounded after a government report showed stockpiles fell a ninth week, marking the longest stretch of declines on record. Halliburton Co. fell 1.6 percent after reporting quarterly sales that slid 43 percent compared to a year earlier. Chesapeake Energy Corp. and Anadarko Petroleum Corp. added at least 1.2 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

The world in its essence is the reconciliation of opposite forces.

These forces, like the right hand and left hand of the creator, act in perfect harmony,

and yet in opposite directions.

Rabindranath Tagore

 

As ever,
 

Carolann

 

We have perhaps a natural fear of ends.  We would rather be always on the way than arrive. 

Given the means, we hang on to them and often forget the ends.

                                                                                         -Eric Hoffer, 1902-1983

 

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 1969, Apollo 11, with Neil Armstrong, Edwin “Buzz” Aldrin and Michael Collins on board, went into orbit around the moon.

Don’t You Wonder, Sometimes?
By Tracy K. Smith

1.
After dark, stars glisten like ice, and the distance they span
Hides something elemental.  Not God, exactly.  More like
Some thin-hipped glittering Bowie-being – a Starman
Or cosmic ace hovering swaying, aching to make us see
And what would we do, you and I, if we could know for sure

That someone was there squinting through the dust,
Saying nothing is lost, that everything lives on waiting only
To be wanted back badly enough?  Would you go on then,
Even for a few nights, into that other life where you
And that first she loved, blind to the future once, and happy?

Would I put on my coat and return to the kitchen where my
Mother and father sit waiting, dinner keeping warm on the stove?
Bowie will never die.  Nothing will come for him in his sleep
Or charging through his veins.  And he’ll never grow old.
Just like the woman you lost, who will always be dark-haired

And flush-faced, running toward an electronic screen
That clocks the minutes, the miles left to go.  Just like the life
In which I’m forever a child looking out my window at the night sky
Thinking one day I’ll touch the world with bare hands
Even if it burns.

Extract of a poem taken from the collection “Life on Mars.” Tracy K. Smith, Graywolf Press.

PHOTOS OF THE DAY

A man rides a tricycle past an advertising poster for luxury apartments in Beijing, on Tuesday. Thomas Peter/Reuters

The sun rises behind the Christ the Redeemer statue above Guanabara Bay in Rio de Janeiro, Brazil, on Tuesday. Ahead of the Olympics set to start on Aug. 5, the event and the city have been overshadowed by security threats, violence, the Zika virus and a national political corruption scandal.Felipe Dana/AP

Market Closes for July 19^th, 2016

Market Index	Close	Change
Dow Jones	18559.01	+25.96   +0.14%
S&P 500	2163.78	-3.11   -0.14%
NASDAQ	5036.375	-19.408   -0.38%
TSX	14524.61	-7.79
		-0.05%

International Markets

Market Index	Close	Change
NIKKEI	16723.31	+225.46
		+1.37%
HANG SENG	21673.20	-129.98
		-0.60%
SENSEX	27787.62	+40.96
		+0.15%
FTSE 100	6697.37	+1.95
		+0.03%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.075	1.099
CND. 30 Year Bond	1.708	1.733
U.S.    10 Year Bond	1.5526	1.5818
U.S. 30 Year Bond	2.2669	2.2944

Currencies

BOC Close	Today	Previous
Canadian $	0.76822	0.77263
US $	1.30172	1.29429
Euro Rate 1 Euro=		Inverse
Canadian $	1.43440	0.69716
US $	1.10193	0.90750

Commodities

Gold	Close	Previous
London Gold Fix	1330.90	1334.70
Oil	Close	Previous
WTI Crude Future	44.65	45.24

Market Commentary:

Number of the Day

0.6%
The amount that the largest U.S. public pension, California Public Employees’ Retirement System, said it earned on its investments for the fiscal year ended June 30.  That was its lowest annual gain since the financial crisis.

Canada

By Eric Lam

     (Bloomberg) — Metals producers Teck Resources Ltd. and First Quantum Minerals Ltd. dropped to lead a decline in commodities companies as Canada’s broader equity benchmark retreated.

     The Canadian equity benchmark S&P/TSX Composite Index slipped 0.1 percent to 14,524.61 at 4 p.m. in Toronto, pulling back after Monday when it reached the highest level in a year. Trading volume was 28 percent lower than the 30-day average.

     Raw-materials producers dropped 0.8 percent as a group, as First Quantum and Teck retreated at least 4.1 percent. Barclays Plc said in a report that the global supply of copper will likely exceed demand every year through 2020. As a result, no new mines will be needed this decade, the bank concluded.

     Suncor Energy Inc. and Imperial Oil Ltd. retreated more than 1.1 percent as energy producers declined 0.4 percent as a group for the fourth decline in five days. Crude closed at the lowest level in more than two months in New York as the dollar rose against its peers and global oil markets were deemed comfortably supplied despite threats to output. U.S. crude supplies remain ample even as government data is projected to show that nationwide stockpiles slipped for a ninth week.

     Even with today’s decline, Canada remains the second-best performing developed market in the world this year with a 12 percent advance, trailing only New Zealand. Mining stocks have fueled the resurgence in Canadian equities with a 59 percent increase amid a rebound in gold prices, the best such performance for the group in at least 30 years, according to data compiled by Bloomberg.

     Consumer staples and technology shares offset some of the losses by commodity companies today, rising at least 0.8 percent. Alimentation Couche-Tard Inc., a convenience-store operator, capped a two-day gain of 1.6 percent. Open Text Corp. rose the most out of technology stocks to the highest since at least 1998.

     Canadian stocks remain more expensive than their U.S. peers, with a price-earnings ratio of 22.4 for the S&P/TSX about 11 percent higher than the S&P 500.

     Ballard Power Systems Inc. tumbled 20 percent, the most in more than two years, a day after rallying 44 percent, the most since February 2015, after signing an agreement to build a factory in China to make fuel-cell stacks in a deal worth at least $168 million over five years. The fuel cells would be used in low-pollution buses in China.

US

By Oliver Renick and Bailey Lipschultz

     (Bloomberg) — The S&P 500 Indexslipped from a record, with the gauge trading in the narrowest range since 2014, as investors were circumspect on the prospects for further gains following a mix of corporate earnings reports.

     The recent record run for equities hit some headwinds as Netflix Inc. tumbled 13 percent after subscriber growth disappointed, and Philip Morris International Inc. dropped 3 percent after its earnings missed forecasts as the strong dollar hurt sales outside of the U.S. Johnson & Johnson provided some offset, climbing 1.7 percent after its quarterly profit beat estimates. After the market closed, Microsoft Corp. rose on better-than-predicted earnings.

     The S&P 500declined 0.1 percent to 2,163.78 at 4 p.m. in New York, after posting all-time highs in five of the previous six days. The Dow Jones Industrial Average rose 25.96 points, or 0.1 percent, to 18,559.01. The index capped a sixth-straight record and extended a rally to an eighth day, the longest in more than three years, led by gains in Johnson & Johnson, UnitedHealth Group Inc. and McDonald’s Corp. The Nasdaq Composite Index lost 0.4 percent.

     “We hit records and now it’s kind of cautiously moving forward,” Larry Peruzzi, managing director of international equities at Mischler Financial Group Inc. in Boston, said by phone. “The economic numbers and earnings continue to come in but it’s definitely a slow trading environment. It’s a combination of Brexit, July and August always being a little light, and whenever the indexes are at higher levels people look for that next driver.”

     U.S. stocks recovered losses after the British vote to leave the European Union, with the S&P 500 taking its annual gain to as high as 6 percent at Monday’s close, amid signs of strength in the economy and speculation the Federal Reserve will push back the timing on interest-rate increases. As worries calm over global growth, the CBOE Volatility Index has retreated to a one-year low. The measure of market turbulence known as the VIX fell 3.8 percent today to 11.97, erasing a gain in the final hour of trading.

     Bets for a Fed rate move have crept up amid improving economic data, though traders are still pricing in less than even odds of an increase until mid-2017. With policy makers scrutinizing data to determine when to boost borrowing costs, a Citigroup gauge that tracks the degree to which data are exceeding economist projections is at an 18-month high. A report today showed new-home construction rose more than forecast in June.

     Even as concerns over the fallout from the U.K. vote to leave the EU have subsided, the International Monetary Fund today scrapped its forecast for a pickup in global growth this year, citing Brexit, and warned the damage could worsen if confidence falters among investors and companies.

     Meanwhile, the earnings season has delivered more positive surprises than negative ones so far. Analysts estimate net income at S&P 500 companies will drop 5.8 percent in the second quarter, which would make it a fifth straight decline, the longest streak since 2009. Microsoft climbed 3.5 percent as of 4:42 p.m. after reporting profit and sales that topped analysts’ estimates, buoyed by an aggressive push into Internet-based software and services for businesses.

     “If the U.S. market is at an all-time high and you have a day of waiting for news, investors trim exposure,” said Ben Kumar, investment manager at Seven Investment Management LLP, which oversees 10 billion pounds ($13 billion). Still, “the simple reason that the S&P 500 is at its all-time high is that the fear of a U.S. recession has now vanished, markets are no longer predicting a long period of deflation, they are no longer worried that the jobs recovery is mythical, masking underlying weakness.”

     In Tuesday’s trading, eight of the S&P 500’s 10 main industries fell, led by raw-materials and energy companies which lost more than 0.5 percent. Industrial and financial shares rose 0.1 percent. About 5.6 billion shares traded hands on U.S. exchanges, 22 percent below the three-month average.

     Energy producers slipped as crude slid to a two-month low, falling below $45 a barrel. ConocoPhillips lost 1.9 percent. Diamond Offshore Drilling Inc. dropped 3.8 percent, the most in the group, while Murphy Oil Corp. and Hess Corp. sank at least 2.6 percent.

     Raw-materials shares fell for the first time in nine days, halting the group’s longest winning streak in 2 1/2 years after it tacked on nearly 8 percent during the rally. CF Industries Holdings Inc. dropped 4.1 percent, while Freeport-McMoRan Inc. sank 5.3 percent and Alcoa Inc. declined 2.7 percent.

     Health-care retreated for a third session, the longest in a month, as Humana Inc. led losses, falling 3.9 percent toward its lowest since February 2015. A report said the U.S. is poised to block Humana’s merger with Aetna Inc., as well as Anthem Inc.’s takeover of Cigna Corp. Anthem, Aetna and Cigna sank more than 2.1 percent.

     Netflix’s biggest plunge since October 2014, and Philip Morris International’s drop dragged on consumer stocks. Retailers slipped after briefly touching an all-time high yesterday. Signet Jewelers Ltd. lost 2 percent, and Nordstrom Inc. fell 1.6 percent to erase a 1.2 percent gain yesterday. McDonald’s countered some of the declines, rising 2.2 percent the most this year. The company’s unit in Japan started giving away figurines based on Pokemon characters with sales of Happy Meals on Friday.

     Among other share moving on corporate news, Comerica Inc. added 2.4 percent. The Dallas-based bank facing investor pressure to sell itself will cut about 9 percent of its workforce over the next year to reduce costs.

     F5 Networks Inc. rallied 4.1 percent after the New York Post reported private equity firm Thoma Bravo LLC was interested in buying the company, citing a person familiar with the matter.

 

Have a wonderful evening everyone.

 

Be magnificent!

A civilization must be judged and assessed, not by the level of power it has reached,

but by how it develops and expresses a love of humanity

through its laws and its institutions.

The firs t and last criterion one must submit to is:

Is it recognizable, and to what level, that man is more a spirit than a machine?

Rabindranath Tagore

As ever,

 

Carolann

 

Regret for the things we did can be tempered by time; it is regret

for the things we did not do that is inconsolable.

                                                  -Sydney J. Harris, 1917-1986

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:

July 18, 1976 – Montréal Olympics events begin; Nadia Comaneci, age 14, scores a Perfect 10 in gymnastics.

On July 18, 1936, the Spanish Civil War began as Gen. Francisco Franco led an uprising of army troops based in North Africa.

On this day in 1969, a car driven by Sen. Ted Kennedy plunged off a bridge on Chappaquiddick Island near Martha’s Vineyard. His passenger, 28-year-old Mary Jo Kopechne, died.

NUMBERS:

385
Record-setting wingspan (in feet) of what will be the world’s largest airplane.  The Strato-launch, built by Microsoft cofounder Paul Allen, is to lift rockets to 35,000 feet, where they will be drop-launched into space.

93
Speed (in petaflops) of the world’s fastest supercomputer, China’s Sunway TailhutLight, based in Wuxi.  It can perform 93,000 trillion calculations per second.

65.3
Million refugees and internally displaced people worldwide in 2015, more than there were after World War ll.

38,000
Approximate cost per day (in US dollars) for a US Secret Service detail to protect a presidential candidate.

1 in 7
Americans living in poverty, according to the International Monetary Fund, which said that the problem needs urgent attention.

8
Estimated percentage of students in the California State University system who are homeless.  It may be as high as 12 percent.

PHOTOS OF THE DAY

David Barber, The Queen’s Swan Marker, prepares to set off for Swan Upping, the annual census of the swan population on the River Thames, in a weeklong exercise where unmarked mute swans are now counted, rather than eaten, in a tradition exercised by the British Crown for nearly 900 years, at Sunbury, Southern England on Monday. Toby Melville/Reuters

A general view shows the crowd gathering on the Promenade des Anglais during a minute of silence on the third day of national mourning to pay tribute to victims of the Bastille Day truck attack in Nice, France. Eric Gaillard/Reuters

Members of the group Bikers for Trump head to a rally for Republican Presidential candidate Donald Trump at Settlers Landing Park in Cleveland, Ohio on Monday. John Minchillo/AP

Market Closes for July 18^th, 2016

Market Index	Close	Change
Dow Jones	18533.05	+16.50   +0.09%
S&P 500	2166.89	+5.15   +0.24%
NASDAQ	5055.785	+26.197   +0.52%
TSX	14532.40	+49.98
		+0.35%

International Markets

Market Index	Close	Change
NIKKEI	16497.85	+111.96
		+0.68%
HANG SENG	21803.18	+143.93
		+0.66%
SENSEX	27746.66	-89.84
		-0.32%
FTSE 100	6695.42	+26.18
		+0.39%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.099	1.093
CND. 30 Year Bond	1.733	1.721
U.S.    10 Year Bond	1.5818	1.5595
U.S. 30 Year Bond	2.2944	2.2704

Currencies

BOC Close	Today	Previous
Canadian $	0.77263	0.77237
US $	1.29429	1.29471
Euro Rate 1 Euro=		Inverse
Canadian $	1.43342	0.69763
US $	1.10750	0.90293

Commodities

Gold	Close	Previous
London Gold Fix	1334.70	1327.00
Oil	Close	Previous
WTI Crude Future	45.24	45.95

Market Commentary:

Number of the Day

$43 billion and $37 billion

The amounts foreign investors hold in lira-denominated bonds and in Turkish equities, respectively.

Canada

By Eric Lam

     (Bloomberg) — Canada’s largest insurance companies rose, helping boosting the nation’s benchmark equity gauge, as Ballard Power Systems Inc. jumped to the highest level in a year after agreeing to a $168-million deal to produce fuel cells in China.

     The Canadian equity benchmark S&P/TSX Composite Index added 0.4 percent to 14,532.4 at 4 p.m. in Toronto, following three weeks of gains. Trading volume was 40 percent lower than the 30- day average.

     Ballard Power soared 44 percent, the biggest gain since February 2015, after agreeing to a deal with Guangdong Nation Synergy Hydrogen Power Technology Co. to manufacture fuel cell stacks in China. The stacks will be built into buses and commercial vehicles in China in the agreement valued at about $168 million over five years. The gains today helped the stock wipe out declines for the year, with Ballard now up 20 percent.

     Barrick Gold Corp. and Silver Wheaton Corp. climbed at least 1 percent as raw-materials producers advanced as a group, leading gains among nine of 10 industries in the S&P/TSX. Gold futures for August delivery rose 0.1 percent to settle at $1,329.30 an ounce.

     Financial companies Manulife Financial Corp. and Sun Life Financial Inc. also each added 0.6 percent.

     Restaurant Brands International Inc., owner of Tim Hortons and Burger King, increased 4.1 percent, to the highest since August. OTR Global has raised its view on Burger King to positive amid strong consumer response to the fast-food chain’s two for $10 whopper meal.

     Energy producers ended the day with a 0.2 percent advance, reversing an earlier loss even as crude for August delivery fell 1.6 percent in New York, trading just above $45 a barrel after a failed coup in Turkey as shipments continued through the country. Telecommunications stocks were the only laggards in the S&P/TSX.

     North American markets are showing some resilience, shrugging off the conflict in Turkey with the U.S. benchmark S&P 500 Index trading at a record high after three straight weeks of gains. Global equities have rallied after a brief selloff in the wake of the U.K. Brexit vote, with the S&P/TSX trading at the highest level in a year.

     Raw-materials producers remain the top-performing industry in Canada this year with a 60 percent increase, the best such performance for the group in at least 30 years, according to data compiled by Bloomberg. Energy stocks have rallied 19 percent on a resurgence in commodities prices from crude to gold.

     Amid the volatility Canadian stocks remain more expensive than their U.S. peers, with a price-earnings ratio of 22.4 for the S&P/TSX about 11 percent higher than the S&P 500.

US

By Oliver Renick

     (Bloomberg) — The S&P 500 Index closed at a record for the fifth time in six days, as technology shares rallied amid deal activity while corporate earnings spurred optimism that results this season will be sturdy enough to help sustain equities at record levels.

     The Dow Jones Industrial Average closed at a record for a fifth straight session. SoftBank Group Corp.’s agreement to buy ARM Holdings Plc for $32 billion pushed semiconductor shares to a 15-year high, and Bank of America Corp. advanced 3.3 percent after posting higher profit in each of its four main businesses. Hasbro Inc. dropped 6.6 percent as sales in its boy-oriented toys disappointed. After the bell, Netflix Inc. tumbled as its quarterly results disappointed.

     The S&P 500added 0.2 percent to 2,166.89 at 4 p.m. in New York amid light trading, following three consecutive weekly gains. The Dow climbed 16.50 points, or 0.1 percent, to 18,533.05 to extend its longest winning streak in four months. The Nasdaq Composite Index surged 0.5 percent, bolstered by chip companies and Apple Inc.’s climb to a seven-week high. About 5.6 billion shares traded hands on U.S. exchanges, 22 percent below the three-month average and the lowest since March 28.

     “The focus for the market is on earnings, and more importantly guidance, focusing on the impact of the economy, elections, and how the dollar is influencing business conditions,” said Kevin Kelly, the chief investment officer at Recon Capital Partners in New York. “It’s hard for a market that is preoccupied on management’s every word to be influenced by Turkey.”

     Equity futures extended a drop on Friday after news that factions of Turkey’s army tried to overthrow the government of President Recep Tayyip Erdogan, but rebounded after the premier’s supporters put an end to the coup by Saturday.

     More than 90 S&P 500 companies report earnings this week. Analysts project a profit decline of 5.8 percent for the index in the second quarter, which would make it a fifth straight drop, the longest streak since 2009. Firms including JPMorgan Chase & Co. and Alcoa Inc. beat earnings estimates last week, sending shares higher.

     After Monday’s close, Netflix reported fewer new subscribers than predicted, as higher prices for some older customers spurred an increase in cancellations. The shares dropped 16 percent as of 4:39 p.m. International Business Machines Corp. rose 3.1 percent in after-hours trading as its revenue beat analysts’ estimates.

     The S&P 500 recovered all its losses following the U.K.’s vote to leave the European Union and rallied to four consecutive records through Thursday. Signs of strength in the economy combined with speculation the Federal Reserve will hold rates steady this year have helped boost equities from a three-month low on June 27. The main U.S. equity benchmark is up 6 percent this year and on pace for a fifth straight monthly gain, which would be the longest in two years.                       

     While bets for a Fed rate increase crept up amid improving economic reports, traders are still pricing in less than even odds of a move until mid-2017. Meanwhile, a Citigroup gauge that tracks the degree to which data are exceeding economist projections is at an 18-month high. Investors will scrutinize reports on housing starts, existing home sales, manufacturing and jobless claims this week for cues on the vitality of growth. A reading today showed confidence among homebuilders declined in July from a five-month high.

     “The markets look pretty resilient to the events in Turkey and the key is expectations about monetary policies,” said Christian Gattiker, head of research at Julius Baer Group Ltd. in Zurich. “There’s widespread expectation that central banks will stay supportive. Earnings are following the usual ritual in the United States, guiding down and then surprising to the upside.”

     In Monday’s trading, the CBOE Volatility Index fell 1.8 percent to 12.44, to an 11-month low. The measure of market turmoil known as the VIX is down about 52 percent from a four- month high on June 24.                         

     Technology shares led gains among the S&P 500’s 10 main industries, rising to the highest since December 4, while consumer-staples and industrial companies slipped less the 0.2 percent as the worst performers. Retailers paced a climb in consumer-discretionary stocks, and financials rebounded from a decline on Friday, paced by lenders after Bank of America’s results.

     Qorvo Inc. and Skyworks Solutions Inc. rose at least 1.9 percent as semiconductor and equipment stocks extended a climb to the highest since February 2001. Hard-drive maker Seagate Technology Plc increased 4.3 percent to a three-month high. Facebook Inc. added 2.2 percent for its best level since May 27.

     Coach Inc. gained 2.5 percent, among the strongest in consumer discretionary, after Robert W. Baird & Co. upgraded the shares to the equivalent of buy from hold. Amazon.com Inc. eked out a gain to snap its longest losing streak since March, while Dollar Tree Inc. and Macy’s Inc. increased more than 1.4 percent as retailers in the S&P 500 briefly flirted with an all-time high.

     Energy producers nearly wiped out a 0.9 percent dropping, slipping with oil as shipments continued through the vital conduit for oil from Russia and Iraq to the Mediterranean Sea following the failed coup attempt in Turkey. West Texas Intermediate crude futures sank 1.5 percent, after falling as much as 2.4 percent. Apache Corp. and Diamond Offshore Drilling Inc. lost at least 1.3 percent.

     Monster Beverage Corp. fell 3.8 percent, the most since February, to weigh on the consumer-staples group. Wells Fargo & Co. analyst Bonnie Herzog downgraded the stock, saying she expects softer results in the near term and a lack of new products.

     Merck & Co. declined 1 percent, among the most in the Dow, after BMO Capital Markets Corp. cut the shares to the equivalent of neutral from buy, citing continued pricing pressure.

     Among other shares moving on corporate news, GameStop Corp. had its biggest rally since January 2015, rising 7.9 percent, after Chief Executive Officer Paul Raines told CNBC that sales were up 100 percent in 462 stores that are “gyms” in the Pokemon Go app. The retailer is the largest distributor of Pokemon video games and collectibles, he said.

 

Have a wonderful evening everyone.

 

Be magnificent!

True civilization does not mean congregating in cities and living a foolish life,

but going Godward, controlling the senses, and thus becoming the ruler in this house of the Self.

Swami Vivekananda

As ever,
 

Carolann

 

 

I only want people around me who can do the impossible.

                                      -Elizabeth Arden, 1878-1966

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