March 11, 2014 Newsletter

Dear Friends,

Tangents:

On this day in 1997, The Beatles lead singer Paul McCartney was knighted by Queen Elizabeth II for his “service to music.” 54 years old at the time, Mr. McCartney, who hails from Liverpool, became Sir Paul in a centuries-old ceremony at Buckingham Palace in central London. -By Kristen Scholer, WSJ.

The video series Everyday Genius tests lots of different supposed solutions in search of the best way to tackle everyday household tasks, e.g., want a better way to peel a hard-boiled egg?  Host Kari Byron keeps the episodes short and to the point.  Find your favorite life hack at American Express’s YouTube channel: www.bit.ly/everydaygenius.

PHOTOS OF THE DAY

Kate, the Duchess of Cambridge, talks to artist Gavin Turk about his painting ‘Portrait of Something that I’ll Never Really See’ during her visit to the Turner Contemporary in Margate, Kent, England, Wednesday. Suzanne Plunkett/AP

A woman lays flowers in front of photos of (from l. to r.) Florence Arthaud, Alexis Vastine and Camille Muffat at a remembrance ceremony at the French National Institute For Sports in Paris Wednesday. Olympic champion swimmer Muffat, Olympic bronze-medalist boxer Vastine and pioneering sailor Arthaud were among 10 people who died as two helicopters filming a reality show crashed in a remote part of Argentina on Monday. Remy de la Mauviniere/AP

Market Closes for March 11^th, 2015     

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, after tumbling to a five-week low Tuesday, as commodities producers and financial companies rebounded.

     Lightstream Resources Ltd. and Raging River Exploration Inc. rallied at least 5 percent as energy shares advanced. Bank of Montreal and Toronto-Dominion Bank advanced more than 0.6 percent to pace gains among the nation’s largest lenders. Valeant Pharmaceuticals International Inc. slumped 3.1 percent after Endo International Plc placed a higher bid for Salix Pharmaceuticals Ltd.

     The Standard & Poor’s/TSX Composite Index rose 97.44 points, or 0.7 percent, to 14,739.20 at 4 p.m. in Toronto. The S&P/TSX rebounded after falling to the lowest since January on Tuesday. The gauge briefly erased 2015 gains amid a rally in the dollar on speculation the U.S. Federal Reserve is moving closer to raising interest rates.

     Lightstream Resources jumped 8.8 percent as energy producers increased 0.9 percent as a group. Nine of 10 industries in the S&P/TSX advanced on trading volume 13 percent lower than the 30-day average.

     Crude oil in New York fell to a two-week low after the Energy Information Administration reported U.S. inventories rose last week. Brent crude snapped a five-day losing streak in London.

     Crescent Point Energy Corp. rose 1.8 percent as fourth- quarter production topped estimates.

     Constellation Software Inc. increased 3.8 percent after acquiring InterAct911 Corp., which develops software systems for law enforcement. Terms of the deal were not disclosed.

     AuRico Gold Inc. surged 11 percent after analysts at Raymond James said the stock was a potential acquisition target.

     Valeant dropped 3.1 percent, the most since October, for a second day of losses. Endo’s cash-and-stock proposal values Salix at $175 a share, trumping Valeant’s $158-per-share bid last month. Salix’s Xifaxan drug to treat travelers’ diarrhea is poised to receive additional approvals from U.S. regulators.

US

By Michelle F. Davis and Oliver Renick

     (Bloomberg) — U.S. stocks fell, after the biggest equities selloff in more than two months amid the surging dollar, as declines in consumer and technology companies offset banks’rebound.

     Cisco Systems Inc. dropped for the sixth time in seven days, and EMC Corp. had its biggest retreat since 2013. Apple Inc. slid to its lowest level in a month. Tyson Foods Inc. and Pilgrim’s Pride Corp. fell more than 4.3 percent amid reports of suspected bird flu in Arkansas. Citigroup Inc. and Bank of America Corp. added at least 2 percent after financial stocks Tuesday had their steepest decline since April.

     The Standard & Poor’s 500 Index declined 0.2 percent to 2,040.24 at 4 p.m. in New York, slipping below its average price for the past 100 days. The Dow Jones Industrial Average fell 27.55 points, or 0.2 percent, to 17,635.39. The Nasdaq 100 Index dropped 0.6 percent, weighed down by technology shares. The Russell 2000 Index of smaller companies rose 0.6 percent.

     “The mood has shifted toward a wait-and-see environment as investors await greater clarity on earnings and possible Fed action,” Terry Sandven, who helps oversee $126 billion as chief equity strategist at U.S. Bank Wealth Management in Minneapolis, said in a phone interview.

     The dollar’s ascent to a 12-year high versus the euro sent American stocks tumbling yesterday, erasing gains for the year on concern earnings are in worse shape than investors recognized. The S&P 500 is down 0.9 percent in 2015, with the index trailing all but one of 24 developed markets.                          

     A 10 percent strengthening in the trade-weighted dollar lowers the estimated 2015 profit for the S&P 500 by about $3 a share, according to an earnings model created by Goldman Sachs Group Inc. The benchmark equity gauge will have earnings per share of $123.52 this year, according to the average of 20 strategist forecasts compiled by Bloomberg.

     Analysts predict profit at S&P 500 companies will drop 5.1 percent in the current quarter after a 4.4 percent increase in the final three months of 2014, data compiled by Bloomberg show. Should S&P 500 earnings fall for the first three months of 2015, it would mark the first period of negative earnings since 2009.

     Dollar General Corp. and Oracle Corp. are among the final companies to post quarterly results over the next week as the earnings season comes to a close. Around 74 percent of companies that have already reported beat profit projections, while 56 percent topped sales estimates.

     Concern the Federal Reserve may start raising interest rates amid a strengthening economy has also weighed on equities this year. Other major central banks are cutting rates and buying government bonds to stimulate growth.

     ECB President Mario Draghi this week started his first round of bond buying to stop deflation taking hold in the euro area, implementing a plan to buy 1.1 trillion euros ($1.2 trillion) of debt.

     The S&P 500 fell 1.6 percent last week, the most since January, as data showed the jobless rate fell to within the Fed’s range for what it considers full employment. Policy makers next meet on March 17-18.

     Seven of the S&P 500’s 10 main groups retreated Wednesday, led by consumer staples and technology company shares. The Chicago Board Options Exchange Volatility Index climbed 1.1 percent to 16.87. The gauge, know as the VIX, rose 14 percent last week, its biggest jump in five weeks.

     Consumer staples shares lost 0.8 percent. Tyson Foods slipped 5.6 percent amid reports suspected bird flu in Arkansas poultry threaten exports. Pilgrim’s Pride and Sanderson Farms Inc. each dropped more than 4.2 percent.                          

     Philip Morris International Inc. retreated 1.8 percent, down in seven of the last eight sessions. Mexican billionaire Carlos Slim will retire from the board at the company’s annual meeting in May.

     Apple fell 1.8 percent to a one-month low. The company’s iTunes and App stores experienced outages Wednesday that prevented users from making purchases or downloading applications.

     EMC slumped 4.6 percent to its lowest level since May 2014 after Wells Fargo Securities analyst Maynard Um cut the stock to market perform from outperform, citing a lack of catalysts until 2016.

     Financial shares added 0.6 percent, after falling the most in nearly a year Tuesday. Charles Schwab Corp., Citigroup and Bank of America paced the advance with gains of least 1.2 percent.

     Semiconductor companies in the benchmark index advanced 0.8 percent, snapping a six-day losing streak as Intel Corp.  gained 2 percent and Micron Technology Inc. rose 1 percent.

     Salix Pharmaceuticals Ltd. rallied 7 percent after Endo International Plc offered to buy the company for $175 a share in cash and stock, topping Valeant Pharmaceuticals International Inc.’s agreement to pay $158 a share. Valeant fell 3.9 percent.

Have a wonderful evening everyone.

Be magnificent!

If you wish to free yourself from suffering, you must free yourself from pleasure,

and not free yourself from suffering.  Suffering is a reaction.

If you wish to release yourself from suffering,

you must first of all release yourself from pleasure.

Then the suffering will disappear.

Swami Prajnanpad

As ever,

Carolann

The best way to make your dreams come true is to wake up.

                                                 -Paul Valery, 1871-1945

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7