Posted on

June 8, 2017 Newsletter

Dear Friends,

Tangents:
On June 8, 1968, authorities announced the capture in London of James Earl Ray, the suspected assassin of civil rights leader Martin Luther King Jr.

Go to article »

Frank Lloyd  Wright, architect, b. 1867
PHOTOS OF THE DAY

German Chancellor Angela Merkel speaks with U.S. President Barack Obama outside the Elmau Castle following a working session of the G-7 summit in southern Germany on Monday. MICHAEL KAPPELER/AGENCE FRANCE-PRESSE/GETTY IMAGES

View of the “Parthenon of Books” by Argentinian artist Marta Minujin, at the Documenta 14 art exhibition in Kassel.   The Parthenon of books, a full-scale replica of the temple on the Acropolis, is made up with some 100,000 copies of banned books donated from the public as well as publishers and institutions.
CREDIT: John Macdougall/AFP
Market Closes for June 8th, 2017

Market

Index

 Close Change
Dow

Jones

 21182.53 +8.84

 

+0.04%
 
S&P 500 2433.79 +0.65

 

+0.03%
 
NASDAQ 6321.766 +24.386

 

+0.39%
 
TSX 15423.09 +50.95

 
+0.33%

International Markets

Market

Index

 Close Change
NIKKEI 19909.26 -75.36
-0.38%
HANG

SENG

 26063.06 +88.90
+0.34%
SENSEX 31213.36 -57.92
-0.19%
FTSE 100* 7449.48 -28.64
-0.38%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.417 1.140
CND.

30 Year

Bond

 2.032 2.020
U.S.   

10 Year Bond

 2.1902 2.1729
U.S.

30 Year Bond

 2.8510 2.8350

Currencies

BOC Close Today Previous  
Canadian $ 0.74066 0.74032
US

$

 1.35015 1.35076
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.51413 0.66044
US

$

 1.12145 0.89170

Commodities

Gold Close Previous
London Gold

Fix

 1273.10 1291.00
     
Oil Close Previous
WTI Crude Future 45.64 45.72

Market Commentary:
Number of the Day
2.3%
GDP growth in the European Union came in at an annualized 2.3% rate in the first quarter, the best since 2015, which may if maintained accelerate the ECB’s plans to wind down its stimulus measures.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks gained as financials rose the most in more than six weeks and health-care shares jumped on a nearly $1-billion deal.
     The S&P/TSX Composite Index added 51 points or 0.3 percent to close at 15,423.09. Financial stocks added 1 percent, rallying along with U.S. banks after former FBI Director James Comey said Donald Trump was never under investigation by the bureau, potentially easing concerns about the president’s stalled agenda.
     The health-care index jumped 4 percent after Valeant Pharmaceuticals International Inc. said it will sell its iNova unit to two private equity firms for $930 million. Valeant accounts for 42 percent of the index.
     In other moves:
* Home Capital Group Inc. jumped 13 percent following a report that the company has received preliminary takeover offers
* Sierra Wireless Inc. added 11 percent to the highest level in more than two years. Sierra is the best-performing stock on the Canadian benchmark year-to-date
* Hudbay Minerals Inc. rose 11 percent as copper futures posted the biggest advance in nine weeks.
US
By Cecile Gutscher and Jeremy Herron
     (Bloomberg) — U.S. stocks ended an up-and-down session little changed, while Treasuries fell and the dollar advanced as the European Central Bank decision and testimony from former FBI Director James Comey did little to impact financial markets.
     The S&P 500 Index edged higher, with markets weighing his testimony for clues on the fate of the Trump administration’s policy agenda. Banks advanced as the 10-year Treasury yield climbed to 2.20 percent. U.K. assets were weighed down by risks of shock outcomes as British voters head to polls in a general election. The euro weakened after Mario Draghi signaled that inflation in the region remains tepid, overshadowing improved prospects for the economy. Crude closed at a five-week low.
     The ousted FBI director called Trump’s explanations for firing him “lies,” though his comments had little implications for financial markets. The ECB’s earlier decision failed to have any lasting impact on assets as investors now turn to the results of the U.K. election, due at 5 p.m. in New York.
     At a press conference after the ECB rates decision, President Draghi said risks to the euro-area economy were “broadly balanced,” while revising inflation forecasts weaker. Until they see stronger evidence of a recovery and a pickup in prices, policy makers will hesitate to shut off stimulus taps, Aberdeen Asset Management Senior Investment Manager Patrick O’Donnell, said before Draghi’s briefing.
Here are some of the key upcoming events:
* Investors are awaiting results from the U.K. elections. The polls close at 10 p.m. Thursday night in the U.K.
     Here are the main moves in markets:
     Stocks
* The S&P 500 rose less than one point to 2,433.78 at 4 p.m. in New York, for a second day of gains. It briefly rose above its closing record during Comey’s testimony but faded in afternoon trading.
* Banks led gains for a second day, while energy shares slid. Rate-sensitive shares fell the most.
* Small caps rallied 1.4 percent to the highest since April 27. It closed 0.2 percent below a record.
* The Stoxx Europe 600 Index edged lower, while the FTSE 100 dropped 0.4 percent.
* The MSCI Emerging Market Index added 0.4 percent.
     Currencies
* The Bloomberg Dollar Spot Index added 0.2 percent.
* The euro fell 0.4 percent to $1.12108, while the pound weakened 0.2 percent to $1.294.
     Bonds
* The yield on 10-year Treasuries rose two basis points to 2.19 percent.
* Benchmark U.K. gilt yields rose three basis points to 1.03 percent, underperforming European peers.
* German bund yields fell one basis point to 0.26 percent.
     Commodities
* Oil fell to the lowest level in five weeks in New York after an unexpected increase in U.S. crude stockpiles cast doubt on OPEC’s ability to rebalance world crude markets.
* Futures settled lower by 0.2 percent to $45.72. The contract fell as much as 0.9 percent in New York after sinking 5.1 percent Wednesday.
* Gold futures fell 1.1 percent to settle at $1,279.50 an ounce in New York.
* Rubber capped its longest run of losses in at least 42 years, dropping to a seven-month low on concern that a shaky Chinese economy may slow demand just as supply picks up.

 

Have a wonderful evening everyone.

 

Be magnificent!

Thought is crooked
because it can  invent anything
and see things that are not there.
It can perform the most extraordinary tricks,
therefore it cannot be depended upon.
Krishnamurti

As ever,

Carolann

 

No amount of skillful invention can replace the essential element of imagination.
                                                                   -Edward Hopper, 1882-1967

 

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

 Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Posted on

June 6, 2017 Newsletter

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

This striking image of a giant man made of lightening shocked onlookers as it dominated the skyline in a thunderstorm at Knowlton Church in Dorset, UK.
CREDIT: MARTIN DOLAN/SWNS.COM
Bathers cool off at a fountain Tuesday in New Delhi. ALTAF QADRI/ASSOCIATED PRESS

Four long-eared owl chicks sit on a tree branch at a wildlife sanctuary near the village of Vygonoshchi in Belarus. SERGEI GAPON/AGENCE FRANCE-PRESSE/GETTY IMAGES
Market Closes for June 6th, 2017

Market

Index

 Close Change
Dow

Jones

 21136.23 -47.81

 

-0.23%
 
S&P 500 2429.33 -6.77

 

-0.28%
 
NASDAQ 6275.058 -20.626

 

-0.33%
 
TSX 15464.56 +54.78

 
+0.36%

International Markets

Market

Index

 Close Change
NIKKEI 19979.90 -190.92
-0.95%
HANG

SENG

 25997.14 +134.15
+0.52%
SENSEX 31190.56 -118.93
-0.38%
FTSE 100* 7524.95 -0.81
-0.01%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.393 1.412
CND.

30 Year

Bond

 1.999 2.025
U.S.   

10 Year Bond

 2.1451 2.1817
U.S.

30 Year Bond

 2.8115 2.8396

Currencies

BOC Close Today Previous  
Canadian $ 0.74366 0.74217
US

$

 1.34470 1.34740
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.51678 0.65929
US

$

 1.12796 0.88655

Commodities

Gold Close Previous
London Gold

Fix

 1293.50 1279.95
     
Oil Close Previous
WTI Crude Future 48.19 47.40

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were relatively unchanged as a risk-off trade boosted gold miners, offsetting declines in other sectors.
     The S&P/TSX Composite Index added 3 points or less than 0.1 percent to 15,410 at 10:02 a.m. Financial stocks lost 0.4 percent as bond yields fell. Genworth MI Canada Inc. lost 1.9 percent and Element Fleet Management Corp. fell 1.4 percent.
     Raw-materials stocks were the biggest gainer as gold prices jumped 1.1 percent. Investors piled into safe havens ahead of several potentially market-moving events on Thursday, including a British election and Congressional testimony from former FBI Director James Comey. Iamgold Corp. jumped 6.9 percent and B2Gold Corp. added 4.9 percent.
     In other moves:
* Valeant Pharmaceuticals International Inc. gained 3.1 percent. The company is in talks to sell its eye-surgery assets to Germany company Carl Zeiss Meditec AG, according to people familiar with the matter
* AutoCanada Inc. added 3.1 percent after the car-dealership owner said it will buy back up to 1.37 million shares
* Major Drilling Group International Inc. gained 2.6 percent. The company’s fourth-quarter loss was in line with estimates
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks fell a second day, the dollar weakened to an eight-month low and Treasuries advanced as caution prevailed before testimony Thursday from former FBI Director James Comey, the ECB’s policy decision and the U.K. election.
     The S&P 500 Index fell the most since mid-May as consumer and industrial shares slumped. Equities briefly pared declines on reports Comey would stop short of saying the president sought to obstruct justice. Europe’s equity benchmark slid the most in a week. Gold headed for a seven-month high and the yen rose to the strongest since April, while 10-year Treasury yields fell to the lowest since November.
     Thursday is shaping up to be a pivotal day for capital markets as Comey’s testimony may give clues on how politically effective the Trump administration will be in refocusing attention on its policy agenda. Investors had already taken a defensive stance this week following a diplomatic spat among energy producing nations in the Middle East and the weekend’s terror attack in London.
     “There is not much scheduled today that could potentially inspire the markets as the main focus this week is on ‘Super Thursday,”’ Piotr Matys, a London-based currency strategist at Rabobank, wrote in a client note. “Essentially, we brace for a volatile session on Thursday and Friday as at least one of those crucial events could trigger sharp moves in the markets.”
     Here are details on some of the important coming events:
* The European Central Bank’s policy decision probably won’t surprise, but the bank may drop the reference to “downside” risks to growth, while reiterating a weak inflation outlook. As a bonus, you get Mario Draghi speaking afterwards.
* Will she, won’t she? Voters will decide on Thursday whether U.K. Prime Minister Theresa May will extend her majority. Or lose it completely.
* Comey’s testimony will be parsed for clues to how the probe into the Trump campaign’s contact with Russian officials could impact the administration.
     Here are the main moves in markets:
     Stocks
* The S&P 500 Index dropped 0.3 percent to 2,429.34 as of 4 p.m. in New York.
* The Stoxx Europe 600 Index declined 0.7 percent. Swiss pharmaceutical company Roche Holding AG slid after one of its drug studies disappointed.
* Emerging-market shares lost 0.2 percent. Qatari stocks fell another 1.6 percent after plunging the most since 2009 on Monday when Saudi Arabia and three other Arab countries severed most diplomatic and economic ties to the country.
     Currencies
* The yen rose 1 percent to 109.409 per dollar, the strongest level since April 21 on a closing basis.
* The Bloomberg Dollar Spot Index fell 0.3 percent and was trading at the lowest since October.
* The euro strengthened 0.2 percent to $1.1277 and the British pound was unchanged at $1.2904.
* South Africa’s rand weakened 0.9 percent after a report showed the economy contracted for a second successive quarter in the first three months of the year.
     Commodities
* Gold climbed futures added 1.2 percent to end at $1,297.50 an ounce, advancing for a third day to the highest since Nov. 9. The sagging dollar and concern over U.K. elections boosted demand for the metal as store of value.
* WTI crude climbed 1.7 percent to settle at $48.19 a barrel in New York. The gains came as U.S. crude stockpiles are seen falling for a ninth week, ahead of the release of industry- funded data on inventories.
* Copper declined as hedge funds pulled back amid concerns about slowing global demand for the metal used in pipes and wires.
     Bonds
* The yield on 10-year Treasuries declined four basis points to 2.14 percent, after climbing two basis points in the previous session.
* Ten-year yields in France fell five basis points to 0.669. Similar maturity U.K. bond yields lost six basis points.

 

Have a wonderful evening everyone.

 

Be magnificent!

As ever,

“Strength and growth come only through continuous effort and struggle.” Napoleon Hill

 

Karen

 

“Happiness lies in the joy of achievement and the thrill of creative effort”. Franklin D. Roosevelt

 

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Posted on

June 5, 2017 Newsletter

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Picture shows the sun rising over the Southworld Pier, Suffolk at the start of a sunny day. The Met office forecast stated that the UK would see sunny spells and showers across Scotland, some heavy and possibly thundery. Cloudier with showings moving across southwest England during the morning, these will move east into central and southern England through the afternoon and evening. CREDIT: ANDREW SHARPE/GEOFF ROBINSON PHOTOGRAPHY

Rowers take part at the 43rd Venice Vogalonga in Venice, Italy. 43 years ago a group of Venetians, both amateur and professional rowers, came up with an idea of non-competitive race in which any kind of rowing boat can take part. The first Vogalonga began with the message to protest against the growing use of powerboats in Venice and the swell damage they do to the historic city.
CREDIT: AWAKENING/GETTY
Market Closes for June 5th, 2017

Market

Index

 Close Change
Dow

Jones

 21184.04 -22.25

 

-0.10%
 
S&P 500 2436.10 -2.97

 

-0.12%
 
NASDAQ 6295.684 -10.112

 

-0.16%
 
TSX 15409.78 -32.97

 
-0.21%

International Markets

Market

Index

 Close Change
NIKKEI 20170.82 -6.46
-0.03%
HANG

SENG

 25862.99 -61.06
-0.24%
SENSEX 31309.49 +36.20
+0.12%
FTSE 100* 7525.76 -21.87
-0.29%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.412 1.396
CND.

30 Year

Bond

 2.025 2.009
U.S.   

10 Year Bond

 2.1817 2.1522
U.S.

30 Year Bond

 2.8396 2.8040

Currencies

BOC Close Today Previous  
Canadian $ 0.74217 0.74254
US

$

 1.34740 1.34673
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.51669 0.65933
US

$

 1.12565 0.88838

Commodities

Gold Close Previous
London Gold

Fix

 1279.95 1274.95
     
Oil Close Previous
WTI Crude Future 47.40 47.66

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks pared earlier losses but still closed in the red, with every sector but one declining.
     The S&P/TSX Composite Index fell 33 points or 0.2 percent to 15,409.78 after earlier declining as much as 0.6 percent. The biggest underperformers were financial, energy, technology and gold miners.
     The consumer discretionary index fell 0.6 percent while materials lost 0.5 percent. Energy stocks closed virtually unchanged despite a 0.6 percent drop in the price of crude. Oil prices swung between gains and losses after four Arab allies of the U.S. moved to isolate Qatar over its ties to Iran.
     In other moves:
* Osisko Gold Royalties Ltd. jumped a record 14 percent after it announced a deal to buy mining assets from Orion Mine Finance Group for about C$1.13 billion
* Element Fleet Management Corp. gained 5.1 percent. The company, which plunged 13% last week on incorrect rumors that it was the target of a short-seller, will buy back up to 10 percent of its shares
* Granite Real Estate Investment Trust added 1.4 percent. Institutional Shareholder Services recommended investors vote for an activist-nominated slate of directors
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks slipped from all-time highs, while the dollar slumped with crude as a caution prevailed at the start of a week full of events that could set the tone on financial markets.The S&P 500 Index swung between gains and losses before closing lower as gains in banks failed to offset weakness in defensive shares. Miners weighed on European equities, as zinc and tin led base metals lower. Some European markets were closed for a public holiday. Mexico’s peso traded at the strongest level in seven months. Oil erased gains sparked by a political spat between several energy-producing nations in the Middle East.
     Markets showed little reaction to the diplomatic tensions in the Middle East and the latest terror attack in London, though a slew of events lie ahead, including the U.K. vote Thursday. The European Central Bank also meets this week and former FBI head James Comey will testify to Congress. The key for the assets may be how investors gauge the strength of global economic growth and its ability to withstand rising borrowing costs or an end to the era of easy central bank cash.
* Comey’s testimony may offer clues to how the probe into the Trump campaign’s contact with Russian officials will impact the administration’s ability to push through its policy agenda.
* Surveys of U.K. voters over the past few weeks have indicated a tightening race, increasing the chance that Prime Minister Theresa May might not bolster her majority.
* Mario Draghi holds forth after Thursday’s ECB meeting. Don’t expect policy changes, but the bank may drop the reference to “downside” risks to growth, while reiterating a weak inflation outlook, Bloomberg Intelligence said.
* Policy decisions from central banks in India and Australia are due during the week, as well as data on Chinese trade and inflation, European industrial output figures and GDP reports for Australia, Japan and the euro area.
     Here are the main moves in markets Monday:
     Stocks
* The S&P 500 fell 0.1 percent to 2,436.21 at 4 p.m. in New York, falling from a record set Friday. Utility and materials shares led losses.
* The Dow Jones Industrial Average and Nasdaq Composite Index also slipped from all-time highs. Apple Inc. lost 1 percent after unveiling new products and software.
* The Stoxx Europe 600 Index declined 0.1 percent with basic resources producers down 0.6 percent.
* MSCI’s emerging-market index added 0.2 percent. The measure is higher by 18 percent in 2017.
     Commodities
* West Texas Intermediate crude declined 0.6 percent to settle at $47.40 a barrel in New York, after dropping 1.5 percent on Friday. The Monday settlement was the lowest in more than three weeks.
* Gold rose 0.3 percent to $1,283.80 an ounce.
* Copper fell 0.5 percent to $5,636 a ton and zinc traded 1.4 percent lower at $2,492 a ton on the London Metal Exchange.  
     Currencies
* The Bloomberg Dollar Spot Index dropped 0.2 percent, adding to a 0.4 percent decline on Friday. The yen fell 0.1 percent to 110.485 per dollar. Japan’s currency climbed 0.9 percent Friday after the U.S. data.
* The Mexican peso jumped 1.9 percent. President Enrique Pena Nieto’s party forged ahead in the election for governor of Mexico’s largest state.
* The pound climbed 0.2 percent after erasing an earlier loss. The euro fell 0.2 percent to $1.1256.
     Bonds
* The yield on 10-year Treasury notes rose two basis points to 2.18 percent after dropping five basis points on Friday.
* U.K. benchmark yields climbed less than one basis point as investors moved past the terror incident in the capital.

 

Have a wonderful evening everyone.

 

Be magnificent!

As ever,

 “A man who dares to waste one hour of time has not discovered the value of life.” —Charles Darwin

 

Karen

  “It is always the simple that produces the marvelous.” —Amelia Barr

 

 

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Posted on

June 2, 2017 Newsletter

Dear Friends,

Tangents:
On June 2, 1953, Queen Elizabeth II of Britain was crowned in Westminster Abbey, 16 months after the death of her father, King George VI.
Go to article »

PHOTOS OF THE DAY

A capsule carrying Russian astronauts from the international space station returns to earth near Dzhezkazgan, Kazakhstan. SHAMIL ZHUMATOV/ASSOCIATED PRESS

An artist’s impression of NASA’s solar Probe Plus spacecraft approaching the sun.  On Wednesday, NASA announced it will launch the probe in summer 2018 to explore the solar atmosphere.  I will be subjected to brutal heat and radiation like no other man-made structure before.
CREDIT: JOHN HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY.  VIA/AD
Market Closes for June 2nd, 2017

Market

Index

 Close Change
Dow

Jones

 21206.29 +62.11

 

+0.29%
 
S&P 500 2438.71 +8.65

 

+0.36%
 
NASDAQ 6305.797 +58.967

 

+0.94%
 
TSX 15440.74 -29.16

 
-0.19%

International Markets

Market

Index

 Close Change
NIKKEI 20177.28 +317.25
+1.60%
HANG

SENG

 25924.05 +114.83
+0.44%
SENSEX 31273.29 +135.70
+0.44%
FTSE 100* 7547.63 +3.86
+0.05%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.396 1.426
CND.

30 Year

Bond

 2.009 2.050
U.S.   

10 Year Bond

 2.1522 2.2114
U.S.

30 Year Bond

 2.8040 2.8626

Currencies

BOC Close Today Previous  
Canadian $ 0.74254 0.74000
US

$

 1.34673 1.35135
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.50585 0.66408
US

$

 1.11815 0.89434

Commodities

Gold Close Previous
London Gold

Fix

 1274.95 1264.85
     
Oil Close Previous
WTI Crude Future 47.66 48.36

Market Commentary:
On this day in 1985, R.J. Reynolds agrees to buy Nabisco Brands for $4.9 billion, making it at the time the largest takeover on record outside the oil industry.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed lower amid oil’s biggest weekly drop in a month as investors continue to question whether OPEC will successfully find a way to reduce a supply glut.
     The S&P/TSX Composite Index lost 27 points or 0.2 percent to 15,442.75 even as global stocks rallied. The benchmark gained 0.2 percent for the week. Energy shares tumbled 0.9 percent Friday as crude prices fell 1.5 percent to $47.66 a barrel. Cenovus Energy Inc. fell 5.3 percent and Bonterra Energy Corp. lost 5.7 percent.
     The raw-materials index lost 0.3 percent as a drop in copper prices more than offset a gain in gold. Semafo Inc. rose 9.4 percent.
     In other moves:
* Canada Goose Holdings Inc. jumped 16 percent after its first quarterly earnings report as a public company showed surprising strength in direct-to-consumer sales despite a tough retail environment
* Asanko Gold Inc. added 5 percent, its first gain in five trading days. The stock fell 22 percent on the week after it was targeted by short seller Muddy Waters LLC
* Saputo Inc. rose 2.9 percent, retracing some of Thursday’s 3.8 percent loss. The stock was upgraded to buy at Desjardins despite a fourth-quarter earnings miss
US
By Jeremy Herron
     (Bloomberg) — The dollar weakened and Treasuries advanced with gold after the latest jobs report offered mixed signals on the strength of the American labor market, while U.S. stocks pushed to fresh records as technology shares extended a rally.
     The Nasdaq 100 Index jumped more than 1 percent to an all- time high as Microsoft Corp. surged the most in six months to a record. Gains in rate-sensitive shares drove the S&P 500 Index to a new high after the 10-year Treasury yield slumped to the lowest level of the year following wage growth and hiring that was below forecasts. The Bloomberg dollar index fell to the lowest since November. Gold jumped and oil capped its worst week in a month.
     The latest jobs report likely won’t deter the Federal Reserve from increasing interest rates in two weeks as the economy continues to grind higher even as Washington shows few signs of moving forward with tax and spending reforms. Global equities have advanced more than 10 percent this year to set fresh records as data showed growth in the world’s largest economy is intact.
     “The unemployment number that came out was well below expectations, and we have a market that’s starting to rethink the Fed’s strategy. There’s a lot of stuff going on,” said Andrew Brenner, head of international fixed income for National Alliance Capital Markets.“But we’re still in a flows market. We’re getting closer to a correction every day, but I think you’re going to have a melt-up first.”
     Here are the main moves in markets:
     Stocks
* The S&P 500 climbed 0.3 percent to a record 2,438.38 as of 4 p.m. in New York.
* The measure rose 0.9 percent in the week, led by gains of at least 2 percent in phone and health-care share. Energy producers slumped 2.4 percent and banks lost 0.9 percent.
* The Dow Jones Industrial Average rose 0.2 percent to 21,190, and briefly climbed above 21,200 for the first time.
* The Nasdaq Composite Index extended its record. The technology-heavy index jumped 1.5 percent in the week.
* The Russell 2000 added 1.7 percent in the four days.
* The Stoxx Europe 600 Index increased 0.2 percent, to cap a 0.3 percent advance in the week.
* Emerging-market equities rose 0.6 percent, paring a loss in the five days to 0.2 percent. The MSCI index is up 18 percent so far in 2017.
     Currencies
* The Bloomberg Dollar Spot Index retreated 0.4 percent to the lowest level since November. It fell 0.5 percent in the week.
* The British pound was little changed at $1.2887, while the euro strengthened 0.6 percent to $1.1283.
* The yen gained 0.9 percent to 110.40 per dollar, after falling 0.5 percent on Thursday.
     Bonds
* The yield on 10-year Treasuries fell six basis points to 2.1487, the lowest level of the year.
* The data had only a marginal impact on the odds of the Fed tightening, with the likelihood for a June hike holding around 86 percent.
     Commodities
* West Texas Intermediate crude dropped 1.5 percent to settle at $47.66 a barrel. Prices fell 4.3 percent in the week, the most since May 5, as U.S. crude production expanded to the highest level since August 2015, countering a slide in stockpiles.
* Gold futures rallied as the jobs data weakened the case for the Fed to move aggressively. Bullion for delivery in three months added 0.8 percent to settle at $1,280.20 an ounce after falling as much as 0.7 percent earlier. The metal posted a fourth straight weekly gain.
     Asia
* The MSCI Asia Pacific Index climbed 0.9 percent to the highest since April 2015. The Nikkei 225 Stock Average rallied 1.6 percent and topped 20,000 for the first time since December 2015.
* China’s offshore yuan tumbled the most since February amid signs that a funding crunch is beginning to abate. The onshore currency slipped 0.2 percent, breaking a four-day rally.

Have a wonderful weekend everyone.

 

Be magnificent!

No one can understand the sound of a drum,
without understanding both the drum and the drummer.
No one can understand the sound of  a conch shell,
without understanding the shell and the one who blows it.
No one can understand the sound of a lute,
without understanding both the lute and the one who plays it.
As there can be no water without the sea, no touch without the skin,
no smell without the nose, no taste without the tongue, no sound without the ear,
no thought without the mind, no work without hands, and no walking without feet,
so there can be nothing without the soul.
Brihadaranyaka Upanishad

As ever,

 

Carolann

 

May you live every day of your life.
       -Jonathan Swift, 1667-1745

 

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Posted on

June 1, 2017 Newsletter

Dear Friends,

Tangents:

On this day in 1980, the Cable News Network, the world’s first round-the-clock TV news service, makes its debut.
And also…
On June 1, 1968, author-lecturer Helen Keller, who earned a college degree despite being blind and deaf most of her life, died in Westport, Conn.

Go to article »

Be humble.  Be hungry.  And always be the hardest worker in the room. –Dwayne “The Rock” Johnson.
PHOTOS OF THE DAY

Fishing boats in Bali, Indonesia, are reflected in the calm sea at dawn.
Bertoni Siswanto/Solent News

Mount Sinabung in Indonesia continues to spew ash as it forms a new lava dome. SABIRIN MANURUNG/PACIFIC PRESS/ZUMA PRESS
Market Closes for June 1st, 2017

Market

Index

 Close Change
Dow

Jones

 21144.18 +135.53

 

+0.65%
 
S&P 500 2430.06 +18.26

 

+0.76%
 
NASDAQ 6246.828 +48.312

 

+0.78%
 
TSX 15469.91 +120.00

 
+0.78%

International Markets

Market

Index

 Close Change
NIKKEI 19860.03 +209.46
+1.07%
HANG

SENG

 25809.22 +148.57
+0.58%
SENSEX 31137.59 -8.21
-0.03%
FTSE 100* 7543.77 +23.82
+0.32%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.426 1.416
CND.

30 Year

Bond

 2.050 2.052
U.S.   

10 Year Bond

 2.2114 2.2028
U.S.

30 Year Bond

 2.8626 2.8634

Currencies

BOC Close Today Previous  
Canadian $ 0.74000 0.74094
US

$

 1.35135 1.34964
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.51571 0.65976
US

$

 1.12163 0.89156

Commodities

Gold Close Previous
London Gold

Fix

 1264.85 1266.20
     
Oil Close Previous
WTI Crude Future 48.36 48.32

Market Commentary:
Number of the Day
49.6
The Caixin China manufacturing purchasing managers index, a private gauge of Chinese factory activity, fell to 49.6 in May, the first time
in nearly a year it has been in contractionary territory.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed higher on a broad- based rally that brought the equity benchmark to its highest level in more than a week.
     The S&P/TSX Composite Index added 120 points or 0.8 percent to 15,469.91 as all but two sectors gained. The rebound followed a decline of 1.5 percent for May, the first monthly decline since June 2016.
     Energy shares rose 1.1 percent following U.S. data that showed oil stockpiles are starting to shrink. Bonterra Energy Corp. gained 7.2 percent. Financial stocks gained 0.7 percent as bond yields rose.
     In other moves:
* BRP Inc. jumped 13 percent to a record high after the company increased its fiscal 2018 guidance and initiated a quarterly dividend
* Element Fleet Management Corp. gained 12 percent, paring Wednesday’s 15 percent drop. The stock was upgraded to buy at Cormark following the selloff
* BlackBerry Ltd. added 8 percent to its highest price since 2013. Citron Research said the company is a likely target for a buyout at a high premium
* Asanko Gold Inc. fell 7.8 percent after it was targeted by short-seller Muddy Waters LLC
US
By Oliver Renick
     (Bloomberg) — U.S. stocks climbed after a slew of economic data that was mostly better than expected, an announcement by President Trump that the U.S. will exit the Paris climate accord and a rally in financial shares that was the best in more than a month.
* S&P 500 up 0.8% to 2,430.06
* Dow Industrials up 136 points to 21,144.18
* Russell 2000 index up 1.9%, the most in 3 months
* Financial stocks rallied in the final hour of trading to cap the biggest 1-day jump since April 24
* Materials shares up 1.1%; Bloomberg commodity index down 0.4%
* Health-care stocks advance for 8th day in 10, up 1.2%
* Real estate and tech lagged market
* 10-year Treasury yield up 1bp
* Volume in S&P 500 about at 30-day average; trading surged Wednesday
** Volume movers: Mead Johnson (MJN), Goodyear (GT), Patterson (PDCO), CenturyLink (CTL), Level 3 (LVLT) all trading on volume at least 3x 30-day average
* VIX down to 9.9
** Volatility movers: Alliance Data (ADS), Public Storage (PSA), Automatic Data Processing (ADP), Waters (WAT), Host Hotels (HST) have highest put-call volume ratio in S&P 500
* POLITICS:
** Trump announced plans to withdraw the U.S. from the landmark Paris climate accord on Thursday, injecting uncertainty into the worldwide effort to combat climate change
** Trump followed his three predecessors in signing a waiver that would keep the U.S. embassy in Tel Aviv for at least six more months, according to two White House officials
* ECONOMY:
** Private payrolls rose by 253k (est. 180k) after revised 174k gain in April
** Initial jobless filings increased by 13k to 248k (est. 238k)
** San Francisco Fed President John Williams said in Seoul that if the U.S. economy strengthens, the central bank can
raise interest rates four times in 2017
* EARNINGS:
** After-market Thursday: Broadcom Ltd (AVGO), Cooper Cos (COO)
** Pre-market Friday: none
* Europe Market: Stoxx 600 closes higher for first time in six sessions

 

Have a wonderful evening everyone.

 

Be magnificent!

The like and dislike is the result of my culture, my training, my associations,
my inclinations, my acquired and inherited characteristics.
It is from that center that I observe and make my judgments,
and the observer is separate from the thing he observes.
Krishnamurti

 

As ever,

 

Carolann

 

Thoughts lead to purposes; purposes go forth in action; actions form habits;
habits decide character; and character fixes our destiny.
                                                                     -Tyron Edwards, 1809-1894

 

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com