May 3, 2019 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

A Great White Shark ambushes a group of Cape Fur Seal in False Bay, South Africa   CREDIT: DAN CALLISTER WWW.DANCALLISTER.COM

Boys who are experiencing the lives of Buddhist monks by staying in a temple for two weeks as novice monks, enjoy a ride at Everland amusement park in Yongin, South Korea CREDIT: REUTERS/KIM HONG-JI

The World-famous tulip fields of Noordoostpolder, Holland have been captured in their full vibrant glory in this series of stunning aerial photographs. With millions of the flowers now in full bloom, the landscape is a kaleidoscope of colour. Dazzling patterns of colour streak the countryside when seen from the air.   CREDIT: MATT COOPER/SWNS.COM
Market Close for May 3rd, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary
On this day in 1998, the front page of the Sunday New York Times reported that an obscure biotechnology company, EntreMed, had cured cancer in mice. In the article, Nobel laureate James Watson said EntreMed’s head researcher “is going to cure cancer in two years.” On Monday morning, Entremed’s stock skyrocketed from $12.06 to $85. By the end of the week, after later reports pooh-poohing Entremed’s research, the stock had sagged to $33.25—leaving latecomers holding the bag.
Canada
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose 0.5 percent at 16,494.43 in Toronto. The move was the biggest since rising 0.6 percent on April 23 and follows the previous session’s decrease of 0.6 percent.
     Suncor Energy Inc. contributed the most to the index gain, increasing 2.0 percent. Pretium Resources Inc. had the largest increase, rising 13.7 percent. Today, 164 of 242 shares rose, while 72 fell; 10 of 11 sectors were higher, led by materials stocks.
Insights
* So far this week, the index fell 0.7 percent, heading for the biggest decline since the week ended Dec. 21
* The index advanced 5.6 percent in the past 52 weeks. The MSCI AC Americas Index gained 11 percent in the same period
* The S&P/TSX Composite is 1.1 percent below its 52-week high on April 23, 2019 and 19.7 percent above its low on Dec. 24, 2018
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.3 on a trailing basis and 15 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.55 trillion
* 30-day price volatility fell to 5.75 percent compared with 6.39 percent in the previous session and the average of 6.40 percent over the past month.
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Sector Name | Move | % Change | Adv/Dec
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Materials | 20.5396| 1.3| 36/13
Financials | 18.8097| 0.4| 17/9
Energy | 18.4200| 0.6| 29/11
Industrials | 12.5958| 0.7| 23/6
Information Technology | 6.9976| 0.9| 7/3
Utilities | 2.4704| 0.4| 12/4
Consumer Discretionary | 2.1542| 0.3| 9/8
Real Estate | 1.2146| 0.2| 16/6
Communication Services | 0.7958| 0.1| 5/2
Health Care | 0.3929| 0.1| 5/5
Consumer Staples | -0.8395| -0.1| 5/5
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Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Suncor Energy | 9.7350| 2.0| 2.9| 14.0
Shopify | 7.7070| 3.2| -2.1| 88.0
Nutrien | 6.5970| 2.2| -27.3| 13.2
Great-West Lifeco | -1.7630| -2.9| 23.2| 12.8
Constellation | | | |
Software | -2.8320| -1.7| -25.6| 36.1
TransCanada | -4.9390| -1.2| 52.9| 28.5
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Biggest Gainers | % Change |Points Move|20D AVG (%)| (%)
================================================================
Pretium | | | |
Resources | 13.7| 1.7100| 180.8| -6.5
Baytex Energy | 12.9| 1.2700| 39.6| 16.2
CannTrust | 7.1| 0.3180| 112.3| 23.6
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Biggest Losers | % Change | Move |20D AVG (%)| (%)
================================================================
Eldorado Gold | -17.8| -1.1230| 519.8| 14.3
Enerflex | -6.3| -0.7060| 375.0| 3.4
Martinrea | -5.7| -0.4430| 339.6| 12.3
* The benchmark 10-year bond fell and the yield rose 0.6 basis points to 1.769 percent
* The S&P 500 Index advanced 1 percent
* Pretivm Executive Chairman Quartermain to Leave Company Dec. 31
* Baytex Energy 1Q FFO Per Share As Adjusted Beats Est.
* Eldorado Slumps on 1Q Miss as Analysts See Better Quarters Ahead
* Enerflex Slides as National Bank Downgrades on Backlog Outlook
* Martinrea Tumbles Most This Year Amid Weakness in Brazil, China
* Materials Buoy Canadian Stocks in First Gain for Index This Week
* U.S. Stocks Roar as Jobs Data Bolster Confidence:
Markets Wrap
 US
By Rita Nazareth and Vildana Hajric
     (Bloomberg) — The rally in U.S. stocks picked up pace after the long-awaited jobs report boosted optimism in the world’s largest economy.
     The S&P 500 Index rose the most in a month as data showed the labor market can support growth without sparking inflation –– giving cover to the Federal Reserve’s patient stance. The dollar fell and Treasuries were little changed. The Nasdaq-100 Index climbed to a new record as Tesla Inc. raised $2.35 billion through debt and stock offerings, while Warren Buffett told CNBC that Berkshire Hathaway Inc. has been buying Amazon.com Inc. shares.
     Read more: Is U.S. Economy Solid or Needing Rate Cut? Jobs Data Back Both Traders pushed up the value of risk assets after surprisingly strong payroll gains in April and the lowest unemployment rate since 1969 calmed some fears that a recession could be brewing. Meanwhile, the lack of a surge in wages kept alive speculation on Wall Street that the Fed will still be forced to ease policy. Earlier in the week, Chairman Jerome Powell pushed back on expectations that the next move would be a rate cut.
     “We’re in this Goldilocks world right now, where it’s not too hot, it’s not too cold and it seems just right,” said Tom Plumb, a money manager at Plumb Balanced Fund in Madison, Wisconsin. “It’s going to be a risk-on environment for stocks. People will put money in the stock market because there will be companies that will capitalize on world economic growth.”
     Two Federal Reserve officials laid out the case for a possible interest-rate cut just days after Powell said there was no reason to move rates in either direction. St. Louis Federal Reserve Bank President James Bullard and Chicago Fed President Charles Evans, both policy voters this year, expressed caution Friday over weak prices and said the central bank may have to act to lift inflation out of a persistently low trend.
     Read more: Calling ‘New Bull Market,’ Fundstrat’s Lee Lifts
     S&P 500 Target
     With Friday’s gains, the S&P 500 extended this year’s surge to about 18 percent. Add Tom Lee to the growing list of strategists getting out in front of a rally that’s quickly outrun their 2019 year-end targets. The co-founder of Fundstrat Global Advisors LLC boosted his prediction for the gauge to 3,125 from 2,925, citing earnings and the potential for investors to pay up for shares given lower bond yields.
     Looking into next week, Chinese Vice Premier Liu He returns to Washington for another round of trade talks. The White House has ramped up pressure to reach an agreement, warning it could still walk away. President Donald Trump told reporters Friday the U.S. could complete a deal with China within a couple weeks.
     “And if it doesn’t happen we’ll be fine too,” he said.
     These are some of the main moves in markets:
Stocks
* The S&P 500 Index climbed 1 percent to 2,945.64 as of 4 p.m. New York time.
* The Dow Jones Industrial Average added 0.8 percent, and the Nasdaq-100 jumped 1.6 percent.
* The Stoxx Europe 600 Index rose 0.4 percent.
* The MSCI Asia Pacific Index advanced 0.2 percent.
Currencies
* The Bloomberg Dollar Spot Index slipped 0.4 percent.
* The euro advanced 0.3 percent to $1.1202.
* The British pound jumped 1.1 percent to $1.3169.
* The Japanese yen gained 0.4 percent to 111.10 per dollar.
Bonds
* The yield on 10-year Treasuries decreased two basis points to 2.53 percent.
* Germany’s 10-year yield declined one basis point to 0.03 percent.
* Britain’s 10-year yield increased three basis points to 1.219 percent.
Commodities
* The Bloomberg Commodity Index increased 0.2 percent.
* West Texas Intermediate crude gained 0.2 percent to $61.94 a barrel.
* Gold advanced 0.7 percent to $1,281.30 an ounce.

Have a  great night.

Be magnificent!
As ever,

Carolann

A friend is one who knows you and loves you just the same.                                    

                                                     –Elbert Hubbard

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