March 12, 2015 Newsletter

Dear Friends,

 
Tangents:

                                                                                             
                                                    You may shoot me with your words.
                                                    You may cut me with your eyes.
                                                    You may kill me with your hatefulness.
                                                    But still, like air, I’ll rise.

                                                                        -Maya Angelou, 1928-2014

I was very moved by the commemorative events that took place last weekend to mark the  anniversary of the march for civil rights, a march led by  Rev. Martin Luther King in Selma, Alabama fifty years ago.  Sadly, fifty  years doesn’t seem all that long ago.  If you haven’t seen the movie Selma yet, I highly recommend it.

The following article was published in the Montgomery newspaper today:

Selma-to-Montgomery marchers reach half way point

Walking down U.S. Highway 80 with a cane in his right hand, Anthony Lee looked straight ahead and said, “I’m 69 years old, and I’m going to prove I can do this.”

Lee has been marching from Selma to Montgomery since Monday with a group organized by the Southern Christian Leadership Conference. By the end of Wednesday, he had walked 35 miles, with 19 more to go until he reaches the steps of the Capitol.

In 1965 he made the final leg of the journey led by Martin Luther King Jr.

“I marched from St. Jude (Hospital) on that final day because I was a student at Auburn at that time,” Lee said. “I didn’t take off the whole time, but I did meet them in Montgomery.”

What he doesn’t mention, at least not at first, is that he was the first African-American to enroll in Auburn as an undergraduate student. He also casually noted that he was the lead plaintiff on Lee v. Macon County Board of Education, a civil rights case that essentially desegregated Alabama’s public school system.

His is the general attitude maintained among the marchers — determined, modest, cheery despite the wearisome distance and rainy days. They came from as close as Dallas County and as far as Australia to complete the pilgrimage.

Zion Small, 9, carries the American Flag while leading a five day march on Wednesday, March 11, 2015, from Selma to Montgomery organized by the Southern Christian Leadership Conference. The march started on Monday and is scheduled to finish at the Alabama Capitol in Montgomery, Ala., on Friday.  (Photo: Albert Cesare / Advertiser)

“It’s such a powerful thing to actually be a part of American history, to be able to physically take part in something we’ve only learned about before,” said Charley Landes, a high school senior from Colorado.

Thursday at 7 p.m. SCLC will host a gospel concert at Macedonia Baptist Church in Montgomery featuring the Wardlaw Brothers. Friday, it will host a pre-rally at Calhoun Super Foods before departing to walk the final miles to the Capitol steps. Upon arrival, it will host another rally. According to SCLC President Charles Steele, Gov. Robert Bentley will be present, among other speakers.

The organization wanted to mirror the schedule of events it held in 1965 when Dr. King led the group from Selma to Montgomery. The lineup about matches what happened in ’65, and some of the marchers say they’re pushing for the same rights as 50 years ago, but that’s where the similarities stop.

“As I walk along, I think about what they must have gone through, all the hatred,” said Katie Boykins of Dallas County. “For us, this is nothing.

PHOTOS OF THE DAY

In this photo provided by NASA, the Soyuz TMA-14M capsule with International Space Station (ISS) crew members Barry Wilmore of the US, and Alexander Samokutyaev and Elena Serova of Russia floats above the clouds as it descends beneath a parachute just before landing southeast of Dzhezkazgan in central Kazakhstan Thursday. Bill Ingalls/NASA/Reuters

An artwork of half a car, ‘Monolithe 147,’ created by Japanese artist Shunsuke Francois Nanjo, is displayed at the art fair ‘Art Central’ in Hong Kong Thursday. The piece was inspired by Japan’s March 11, 2011, earthquake and tsunami. Art Central runs from March 13 to 16. Kin Cheung/AP

Market Closes for March 12^th, 2015     

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian rose a second day, after reaching a five-week low, as banks and insurers extended a rally to offset a drop among commodities producers.

     Sun Life Financial Inc. and Bank of Montreal rallied more than 1.2 percent to pace gains among financial stocks. Gran Tierra Energy Inc. and ARC Resources Ltd. lost at least 4.9 percent as oil producers slid. Loblaw Cos. rose 1.3 percent after introducing a produce brand selling “misshapen produce.”

     The Standard & Poor’s/TSX Composite Index added 31.52 points, or 0.2 percent, to 14,770.72 at 4 p.m. in Toronto. The S&P/TSX has advanced 1 percent in 2015, rebounding after briefly paring gains for the year on Tuesday.

     Sun Life gained 2.1 percent, a one-month high, as financial stocks gained 0.8 percent as a group. The industry accounts for about a third of the broader equity gauge. Trading volume was 18 percent below the 30-day average at this time of the day.

     Onex Corp. climbed 3.1 percent to a record. Onex has returned 161 percent to shareholders over the past five years, compared with a 69 percent gain in the S&P Listed Private Equity Index, Bloomberg reported.

     Algonquin Power & Utilities Corp. added 2.6 percent to pace gains among utilities shares. The stock slumped 17 percent in a two-day period ended March 9 after delaying its fourth-quarter earnings to March 26.

     Gran Tierra Energy lost 5.2 percent and Suncor Energy Inc. slipped 1.8 percent. West Texas Intermediate crude dropped to a six-week low on concern that production increases will add to a glut. U.S. inventories rose to the highest level since weekly data started in 1982.

     Loblaw rose 1.3 percent, the most in three weeks. The grocery store operator will sell its “Naturally Imperfect” line of misshapen produce including apples and potatoes in some Ontario and Quebec stores.

US

By Michelle F. Davis

     (Bloomberg) — U.S. stocks climbed, after equities had their biggest two-day selloff in six weeks, as banks rose and an unexpected drop in retail sales bolstered the case for keeping interest rates low.

     Morgan Stanley, American Express Co. and Citigroup Inc. added at least 2.7 percent as they announced dividend payments and details on share buybacks after approval from the Federal Reserve following stress tests. Intel Corp. slid after cutting its first-quarter revenue outlook.

     The Standard & Poor’s 500 Index advanced 1.3 percent to 2,065.95 at the close in New York, after losing 1.9 percent in the previous two sessions. The gauge climbed back above its average price for the past 50 days. The Dow Jones Industrial Average rallied 259.83 points, or 1.5 percent, to 17,895.22. Both indexes posted their strongest gains in a month. The Nasdaq Composite Index rose 0.9 percent.

     “I think this is a question of the bad news is good news, which is a reversal of what we had Friday when we got killed,” Donald Selkin, the chief market strategist at New York-based National Securities, which oversees $3 billion, said in a phone interview. “The only reason it’s good is in policy because it throws a wet blanket over the surety of them raising rates.”

     Concern the Fed may start raising interest rates amid a pickup in the economic recovery has weighed on equities this year. Policy makers next meet on March 17-18.

     Sales at U.S. retailers unexpectedly decreased in February for a third consecutive month as inclement weather and low wage gains restrained shoppers.

     The 0.6 percent drop followed a 0.8 percent decrease in January, Commerce Department figures showed Thursday in Washington. The median forecast of 86 economists surveyed by Bloomberg called for a 0.3 percent gain.

     The number of Americans filing for unemployment benefits declined more than forecast last week, returning to a level consistent with an improving labor market. Initial claims dropped 36,000 to a three-week low of 289,000, a Labor Department report said.

     A preliminary report on Friday will show consumer sentiment held steady this month, economists forecast. Consumer spending accounts for about 70 percent of the U.S. economy.

     The dollar weakened versus the euro for the first time in three days as investors questioned whether gains of more than 2 percent this week will prompt the Fed to soften its stance on the timing of an interest-rate increase.

     “The weakness in the market has been based on that strong dollar,” Selkin said. “The dollar’s a little weaker today so maybe that’ll help.”

     The dollar’s rise to a 12-year high versus the euro has helped drag American stocks down 2.4 percent since a record on March 2, amid concern earnings growth will be lower than investors project.

     The rising dollar hurts technology companies disproportionately as it reduces the value of foreign-currency earnings when they are repatriated back to the U.S.

     Technology is the biggest industry in the S&P 500 with a 20 percent weighting, accounting for 19.3 percent of the index’s operating earnings last year, data compiled by S&P Dow Jones Indices show.

     Intel fell 4.7 percent to its lowest since July after the world’s largest chipmaker said first-quarter sales will be less than forecast, citing lower-than-anticipated demand for corporate computers and weakening economies, particularly in Europe.

     Semiconductor companies in the benchmark index declined 1.3 percent after yesterday snapping a six-day losing streak. Intel’s lower sales outlook also weighed on Microsoft Corp., with its shares falling 2.3 percent.

     The Chicago Board Options Exchange Volatility Index dropped 8.6 percent to 15.42, the biggest drop in a month. The gauge, know as the VIX, rose 14 percent last week, its biggest jump in five weeks.

     Nine of 10 main groups in the S&P 500 advanced Thursday.

     Financial companies led gains, up 2.2 percent, and consumer discretionary added 2 percent. About 6.5 billion shares changed hands on U.S. exchanges, 5.4 percent below the three-month average.

     Morgan Stanley rose 6.1 percent after boosting its payout to 15 cents a share, from 10 cents, and saying it will buy back as much as $3.1 billion of its own stock.

     American Express climbed 2.7 percent after unexpectedly raising its dividend. The company also increased the amount of authorized share repurchases to $6.6 billion.

     Citigroup added 3.3 percent after Fed approval to pay 5 cents a share in dividends and buy back as much as $7.8 billion of stock during the next five quarters, up from $1.2 billion over the past four.                       

     Mattel Inc. rose 4.2 percent after Wednesday reaching its lowest level since August 2011. Shares had dropped 7.3 percent since March 2. Tiffany & Co. climbed 2.5 percent after hitting its lowest in more than a year on Tuesday. The luxury retailer’s shares had slid 7.1 percent since March 2.

     Walt Disney Co. advanced 4.2 percent to a record amid its biggest gain in more than a month, after the company said it will release three “Star Wars” films during the next two years and 11 more Marvel movies in the next four years.

     Charter Communications Inc. climbed 5.9 percent after people with knowledge of the matter said the cable company is in talks to acquire billionaire Si Newhouse Jr.’s Bright House Networks.

     Acadia Pharmaceuticals Inc. tumbled 22 percent, the most in more than five years, after postponing a new drug application and saying its chief executive officer retired.

     Peabody Energy Corp. fell 4.9 percent to a 12-year low, and Consol Energy Inc. slid 3.8 percent to its lowest since 2013 after Bank of America analyst Timna Tanners cut the coal companies to underperform from neutral, citing lower coal price estimates.

     Drilling companies Nabors Industries Ltd. and Helmerich & Payne Inc. fell at least 1.6 percent as West Texas Intermediate oil prices retreated to a six-week low.

Have a wonderful evening everyone.

Be magnificent!

Satisfy one’s desires, certainly, but which ones?

And to what extent?

To determine precisely what I want, and how.

Children?  Money?  Glory? How?

Swami Prajnanpad

As ever,

Carolann

Words, once they are printed, have a life of their own.

                                            –Carol Burnett, 1933-

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