Month: May 2018

Dear Friends,

Tangents:
On May 2, 1945, the Soviet Union announced the fall of Berlin and the Allies announced the surrender of Nazi troops in Italy and parts of Austria.
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On this day in 1981, American Airlines introduced the first frequent-flyer program, AAdvantage. Most major airlines followed suit almost immediately.

The next wave in the looming robot apocalypse is their invasion of the Smithsonian museums. Twenty-five robots started “working” there this week. 

Leonardo Da Vince, d. May 2, 1519

As a well-spent day brings happy sleep, so a life well used brings a happy death. ~Leonardo Da Vinci.

PHOTOS OF THE DAY

Steam returns to the Settle to Carlisle railway line, as the first ‘Dalesman’ train hauls passengers on the most scenic railway in England. Pictured is the LMS Stanier Class 8F 48151 powering over Arten Gill Viaduct – high in the Cumbrian Pennines – as passengers enjoy stunning views along the back bone of England. Credit: Paul Kingston/NNP

Theatre company Les Enfants Terribles have created this art installation in Blickling Hall, Norfolk. The Word Defiant is a series of installations throughout the mansion, revealing stories of books that have been banned, burned, redacted, drowned, neglected and superseded. Credit: David Rose for the Telegraph

Students from the University of St. Andrews take part in the traditional May Day Dip on the East Sands in St. Andrews, Fife. Plunging into the freezing North Sea at dawn on the first of May is said to promote good luck in exams. Credit: Jane Barlow/PA

Mathilde Edey Gamassou, acting as Jeanne d’Arc, takes part in a tribute to Jeanne D’Arc (Joan of Arc) at the Johannique celebrations in Orleans, central France. Credit: Guillaume Souvant/AFP/Getty Images
Market Closes for May 2^nd, 2018

Market Index	Close	Change
Dow Jones	23924.98	-174.07   -0.72%
S&P 500	2635.67	-19.13   -0.72%
NASDAQ	7100.898	-29.806   -0.42%
TSX	15627.93	+9.00
		+0.06%

International Markets

Market Index	Close	Change
NIKKEI	22472.78	-35.25
		-0.16%
HANG SENG	30723.88	-84.57
		-0.27%
SENSEX	35176.42	+16.06
		+0.05%
FTSE 100*	7543.20	+22.84
		+0.30%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.362		2.345
CND. 30 Year Bond		2.435		2.416
U.S.    10 Year Bond		2.9738		2.9700
U.S. 30 Year Bond		3.1502		3.1311

Currencies

BOC Close	Today	Previous
Canadian $	0.77643	0.77834
US $	1.28795	1.28478
Euro Rate 1 Euro=		Inverse
Canadian $	1.53972	0.64947
US $	1.19548	0.83648

Commodities

Gold	Close	Previous
London Gold Fix	1307.10	1313.20
Oil
WTI Crude Future	67.93	67.25

Market Commentary:
Number of the Day
$100 billion
The value of a share buyback program that Apple Inc. announced Tuesday, the largest in corporate history. The tech giant said earlier in the year that it was bringing overseas cash back to the U.S.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks edged higher, propelled by stronger commodity prices and earnings from tech company CGI Group Inc.
     The S&P/TSX Composite Index added nine points or 0.1 percent to 15,627.93 after earlier gaining as much as 0.4 percent. Materials rose the most, adding 0.7 percent as Chinese investors piled into base metals.
    CGI rose 2.3 percent, briefly touching a record high, after quarterly revenue beat the highest estimate. Maple Leaf Foods Inc. was the biggest decliner, falling 5.7 percent, the most since 2015, on lower pork processing margins.
     In other moves:
                          Stocks
* Green Organic Dutchman Holdings Ltd. rose 6.6 percent in the cannabis company’s trading debut
* NexGen Energy Ltd gained 8.3 percent. The uranium miner said it made significant radioactivity discoveries around its Arrow deposit
* Russel Metals Inc. added 5.8 percent, the most since November, after first-quarter earnings beat the highest analyst estimate
                         Commodities
* Western Canada Select crude oil traded at a $15.25 discount to WTI
* Gold fell 0.1 percent to $1,305.60 an ounce, the lowest since March 1
                         FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.2885 per U.S. dollar, the lowest since April 2
* The Canada 10-year government bond yield rose two basis points to 2.37 percent
US
By Janine Wolf and Sarah Ponczek
     (Bloomberg) — U.S. stocks fell to their lowest in a week and the dollar jumped as investors assessed the Federal Reserve’s signal that it’s in no rush to raise rates even as inflation rises to its target.
     The S&P 500 ended near session lows after briefly pushing higher following the central bank’s decision to hold rates steady. Equities tumbled in the final hour of trading as concern mounted that the Fed may let inflation run hot as it gradually tightens. Treasury yields resumed a march to 3 percent and the dollar strengthened versus major peers, adding to equity headwinds.
     Central bank officials may have signaled their willingness to allow inflation to exceed their 2 percent goal somewhat by adding a reference to the “symmetric” nature of their target.
     “This week’s government data showed inflation moving closer to its 2 percent target. This adjustment is simply an acknowledgment by the Fed that its inflation forecast is, in fact, playing out as predicted,” Robin Anderson, a senior economist at Principal Global Investors, said in an email.
     “Since inflation was running below 2 percent, this language indicates that the Fed might be willing to let it run a little above 2 percent for a little while.”
     The British pound and the euro traded lower. Emerging- market equities and currencies mostly dropped. Gold and oil gained after the Fed announcement. Earlier, miners, automakers and technology shares led the Stoxx Europe 600 Index toward its best gain this week, shrugging off declines in most Asian markets.
     As U.S. trade officials prepare to visit China for talks Thursday and Friday, the People’s Bank of China weakened its daily currency fixing by more than traders and analysts had expected. The move raises questions about whether it may devalue further to counter American import tariffs.
    These are some key events to watch this week:
* Eurozone producer prices are scheduled for tomorrow.
* The European Commission will present its spring economic forecasts, including growth, inflation, debt and deficit projections.
* Payroll gains in the U.S. probably picked up in April, with the unemployment rate forecast to drop to 4 percent, according to surveys of economists before the data reports due Friday.
* Earnings season continues with Tesla Inc. on Wednesday and HSBC Holdings Plc Friday.
     And these are the main moves in markets:
                          Stocks
* The S&P 500 Index declined 0.7 percent as of 4:01 p.m. New York time.
* The Stoxx Europe 600 Index advanced 0.6 percent.
* The U.K.’s FTSE 100 Index gained 0.3 percent, its fifth consecutive advance.
* Germany’s DAX Index surged 1.5 percent to the highest in almost three months.
* The MSCI Emerging Market Index fell 1 percent, the biggest drop in a week. 
                          Currencies
* The Bloomberg Dollar Spot Index gained 0.3 percent.
* The euro fell 0.4 percent to $1.1941.
* The British pound fell 0.4 percent to $1.3563.
* The Japanese yen declined 0.1 percent to 109.92 per dollar.
                           Bonds
* The yield on 10-year Treasuries gained one basis point to 2.97 percent.
* Germany’s 10-year yield climbed two basis points to 0.58 percent, the largest surge in more than a week.
* Britain’s 10-year yield climbed five basis points to 1.457 percent, the first advance in a week.
                           Commodities
* West Texas Intermediate crude gained 0.7 percent to $67.73 a barrel, the biggest gain in two weeks.
* Gold increased 0.1 percent to $1,304.55 an ounce.
* LME copper rose 1.1 percent to $6,820 a metric ton.
–With assistance from Adam Haigh, Cecile Gutscher and Todd White.

Have a great evening.

Be magnificent!

As ever,

 

Carolann

 

Chance fights ever on the side of the prudent.
              -Euripedes, c. 480 BC- c. 406 BC

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

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

Dear Friends,

Tangents: May Day today.
Polydore Virgil says that the Roman youths used to go into the fields and spend the Calends of May in dancing and singing in honour of Flora, goddess of fruits and flowers.  The English celebrated May Day with games and sports, particularly archery and Morris Dances and the setting up of the Maypole.  In due time, Robin Hood and Maid Marian came to preside as Lord and Lady of the May, and by the 16^th century, May Day was Robin Hood’s Day and Robin Hood plays became an integral part of the festivities. -from Brewer’s Phrase & Fable.

-From today’s New York Times:

But on this day in 1930, “Pluto” was suggested as the name of what was then the newly discovered ninth planet, inspired by a British schoolgirl, Venetia Burney.

Shortly after “Planet X” was discovered in February of that year, Venetia’s grandfather was reading about the news over breakfast. Interested in Greek and Roman mythology, Venetia suggested Pluto, the god of the underworld.

Her grandfather, a retired librarian at Oxford, sent her suggestion to a professor of astronomy at the university, who wrote back: “I think PLUTO excellent!!”

The name worked on a few levels: As the most distant planet, the name of an underworld god was fitting. And the planet’s first two letters matched the initials of Percival Lowell, the astronomer who initiated the search for Pluto.

As a reward, her grandfather gave her a five-pound note, and later an asteroid was named 6235 Burney in her honor, in 1987.

But she was modest about her achievement during an interview with NASA in 2006 (the same year that Pluto was demoted to a dwarf planet): “It doesn’t arise in conversation and you don’t just go around telling people that you named Pluto.”

Anna Schaverien wrote today’s Back Story.

PHOTOS OF THE DAY

Early risers were treated to a dramatic sky on the Northumberland coast this morning as rays of sunlight emit from ominous clouds over Bamburgh Castle sending golden dappled light over the North Sea and the Farnes Islands just after sunrise. Credit: The Telegraph

These are the stunning pictures of seven adorable dogs – which could be the most obedient pooches in Scotland. Kaylee Robertson has six well-trained Shetland sheep-dogs, and one Alaskan Klee Kai which she says are like “fully trained models”. The 28-year-old’s clever pups have been taught to stand together while Kaylee takes pictures of them striking a pose. Some of the dogs, who are named are Lord of the Rings and Game of Thrones characters, have been posing since they were four weeks old. The cute pups, whose age range from six months to six years old, are called Fenton, Thiago, Gimli, Mercy, Ghost, Murphy and Jara. Credit: The Telegraph

Bluebells add a dash of colour to Hollybank Woods near Emsworth on the Hampshire/West Sussex border. The woods are a haven to flora and fauna including rare bat species. Credit: The Telegraph
Market Closes for May 1^st, 2018

Market Index	Close	Change
Dow Jones	24099.05	-64.10   -0.27%
S&P 500	2654.80	+6.75   +0.25%
NASDAQ	7130.703	+64.437   +0.91%
TSX	15618.93	+11.05
		+0.07%

International Markets

Market Index	Close	Change
NIKKEI	22508.03	+40.16
		+0.18%
HANG SENG	30808.45	+527.78
		+1.74%
SENSEX	35160.36	+190.66
		+0.55%
FTSE 100*	7520.36	+11.06
		+0.15%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.345		2.303
CND. 30 Year Bond		2.416		2.398
U.S.    10 Year Bond		2.9700		2.9494
U.S. 30 Year Bond		3.1311		3.1196

Currencies

BOC Close	Today	Previous
Canadian $	0.77834	0.77903
US $	1.28478	1.28365
Euro Rate 1 Euro=		Inverse
Canadian $	1.54086	0.64899
US $	1.19921	0.83388

Commodities

Gold	Close	Previous
London Gold Fix	1313.20	1321.50
Oil
WTI Crude Future	67.25	68.57

Market Commentary:
$ ~ On this day in 1956, seven investors contributed $105,000 to an investment partnership to be run by a 25-year-old from his bedroom in a rented house in Omaha. The “kid” was Warren Buffett.
Number of the Day
2%
The Fed’s preferred inflation gauge was up 2% from a year earlier in March, meeting the central bank’s target for the first time in more than a year.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed with a small gain after spending most of the session in the red, with gains in materials offsetting a big drop in Shopify Inc.
     The S&P/TSX Composite Index added 11 points or 0.1 percent to 15,618.93. Detour Gold Corp. led the gains, rising 9.5 percent after five straight days of declines. The materials sector added 0.5 percent.
     Shopify lost 4.8 percent amid slowing growth metrics. Technology stocks were flat.
     In other moves:
                          Stocks
* Colliers International Group Inc. gained 7.8 percent to a record high after first-quarter earnings and revenue beat the highest analyst estimates
* Cameco Corp. added 6.1 percent, the most this year. TD Securities said it sees uranium prices moving higher over the next 12 months
* Secure Energy Services Inc. fell 5.1 percent after first- quarter earnings missed estimates
                          Commodities
* Western Canada Select crude oil traded at a $14.85 discount to WTI, the narrowest gap since November
* Gold fell 0.9 percent to $1,306.80 an ounce, the lowest since March .
                           FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.2858 per U.S. dollar
* The Canada 10-year government bond yield rose four basis points to 2.35 percent after the Canadian economy rebounded more than expected in February
US
By Janine Wolf and Sarah Ponczek
     (Bloomberg) — U.S. stocks closed mixed, with Apple Inc. leading a late afternoon rally in tech shares that helped offset a drop in industrials sparked by weak production data. The dollar registered its biggest advance in more than a week and Treasuries fell.
     “You might be having a little bit of buy on the dip activity,” said Matt Schreiber, president and chief investment strategist at WBI Investments. “If you’re actually following the fundamentals, you’d be putting money to work in the sectors where companies are printing good earnings and revenue.”
     The Dow Jones Industrial Average declined for a third day as U.S. manufacturing expanded at its slowest pace since July. Tech companies including Apple — which reports earnings after the close — bucked the downward trend, pushing the Nasdaq higher. Ten-year Treasury yields gained but remained below 3 percent as the greenback posted its ninth gain in 11 days, with that strength weighing on most commodities: Oil retreated and gold declined to its lowest price since December.
     Sterling slumped after U.K. manufacturing slowed more than predicted. That spurred the FTSE, one of the few European equity gauges trading, to rise a fourth day. Broader European benchmarks were flat, as businesses warned of market uncertainty following the Trump administration’s decision to delay U.S. steel and aluminum tariffs.
     Markets were shut for holidays in countries including Germany, France, Italy, Spain, China, Hong Kong, Singapore and India.
     A big focus this week is likely to be central bank policy and economic data. Investors will watch the Federal Reserve meeting closely for any signals that policy makers will raise interest rates another three times this year.
     “There is a tug-of-war in the market as to whether or not the economy is gaining strength, or whether or not it continues to be moderate, and therefore whether or not the economy can withstand three or even four rate hikes, especially if you are seeing a moderation of economic activity in Europe,” Quincy Krosby, chief market strategist at Prudential Financial Inc., said by phone.
     With the dollar ticking higher, foreign-exchange traders are also asking whether the U.S. currency’s bout of strength has legs or will fade as sellers emerge at key technical levels. The Australian dollar declined after the central bank maintained its policy stance amid below-target inflation and constrained household spending.
     These are some key events to watch this week:
* The Federal Open Market Committee begins a two-day meeting on Tuesday. The rates decision is Wednesday.
* The European Commission presents its spring economic forecasts, which include projections for growth, inflation, debt and deficit.
* Payroll gains in the U.S. probably picked up in April, with the unemployment rate forecast to drop to 4 percent, according to surveys of economists.
* Earnings season continues, with Apple Inc. headlining. Other high profile results include Pfizer Inc., HSBC Holdings Inc. and Tesla Inc.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.3 percent to 2,654.79 as of 4:03 p.m. New York time.
* The Nasdaq 100 Index rose 1.2 percent to 6,681.96; the Dow Jones Industrial Average slid 0.3 percent to 24,099.05.
* The U.K.’s FTSE 100 Index rose 0.2 percent to the highest in almost three months.
* The MSCI Emerging Market Index decreased 0.5 percent.
                           Currencies
* The Bloomberg Dollar Spot Index increased 0.6 percent to the highest in almost 16 weeks.
* The euro declined 0.7 percent to $1.1993, touching the weakest in almost 16 weeks.
* The British pound fell 1.1 percent to $1.3621.
* The Japanese yen decreased 0.5 percent to 109.88 per dollar, touching the weakest in more than 12 weeks.
                           Bonds
* The yield on 10-year Treasuries increased two basis point to 2.97 percent.
* Britain’s 10-year yield fell one basis point to 1.40 percent, its sixth straight decline.
                           Commodities
* West Texas Intermediate crude fell 1.7 percent to $67.43 a barrel.
* Gold dropped 0.8 percent to $1,305 an ounce, touching the weakest in four months.
* LME copper fell 0.9 percent to $6,716.25 a metric ton.
–With assistance from Anooja Debnath.

Have a great night.

Be magnificent!

As ever,

Carolann

A man is not idle because he is absorbed in thought.  There is a visible labor and there is an invisible labor. -Victor Hugo, 1802-1885

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

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