April 9, 2015 Newsletter

Dear Friends, 

Tangents:

 On this day in 1865, Confederate General Robert E. Lee surrendered his 28,000 troops to Union General Ulysses S. Grant at Appomattox, Va., effectively ending the American Civil War.

A Confederate flag bearer watches the battle during a re-enactment of the Battle of Appomattox Courthouse as part of the commemoration of the 150th anniversary of the surrender of the army of Northern Virginia at Appomattox Court House in Appomattox, Va., Thursday. The battle was the final battle of the army of Confederate General Robert E. Lee before his surrender to Union troops. Steve Helber/AP

Getty Images

Apple Watch on display

http://video.cnbc.com/gallery/?video=3000369730

Market Closes for April 9, 2015  

International Markets

Bonds

Currencies

Commodities

The worst crime against working people is a company that fails to make a profit.  –Samuel Gompers, 1850-1924.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rallied a sixth day, for the highest closing level since September, as energy producers advanced after oil rebounded from the biggest one-day decline in two months.

     Brookfield Asset Management Inc. gained 2.1 percent after the company said it will increase its dividend and split its stock 3-for-2. Canadian Oil Sands Ltd. and Pengrowth Energy Corp. increased at least 3.5 percent as oil rallied. Hudson’s Bay Co. lost 3.4 percent after two investors sold shares of the retailer.

     The Standard & Poor’s/TSX Composite Index climbed 112.71 points, or 0.7 percent, to 15,326.31 at 4 p.m. in Toronto. The equity gauge has advanced 2.8 percent over six days and is up 4.7 percent for the year.

     Suncor Energy Inc. increased 1.4 percent and Canadian Natural Resources Ltd. rose 1.3 percent as energy producers increased 1.4 percent as a group, the most in the S&P/TSX. Nine of 10 industries in the benchmark Canadian equity gauge rose on trading volume 3.5 percent lower than the 30-day average.

     Crude futures climbed 0.7 percent in New York following a 6.6 percent slump on Wednesday. Iran said it would only agree to curb its nuclear program if all trade restrictions are removed, while U.S. and EU officials have said the restrictions should be lifted gradually.

     Concordia Healthcare Corp., the best-performing stock in the S&P/TSX this year, increased 7.1 percent for a third day of gains, extending a record.

     The company yesterday closed a C$368 million deal selling subscription receipts for shares, in part to fund its $1.2 billion proposed acquisition of assets from Covis Pharma Holdings Sarl. Chief Executive Officer Mark Thompson is seeking larger acquisitions and more assets in Europe.

     Detour Gold Corp. retreated 4.3 percent as gold for June delivery lost 0.8 percent to $1,193.60 in New York, a one-week low on speculation the Federal Reserve is moving closer to raising interest rates. Policy makers with the central bank were split on a potential rate hike in June, according to the latest minutes.

     Labrador Iron Ore Royalty Corp. slumped 6.7 percent after Tony Robson, analyst at BMO Capital Markets, cut his rating for the stock to market perform, the equivalent of a hold, from outperform, or buy.

US

By Callie Bost and Jennifer Kaplan

     (Bloomberg) — U.S. stocks rose as energy companies gained amid a rebound in crude, offsetting quarterly results from Alcoa Inc. and Bed Bath & Beyond Inc. that disappointed investors.

     Halliburton Co. and Anadarko Petroleum Corp. added more than 3.2 percent as oil rose after its biggest drop in two months. Health-care companies climbed for a fifth day. Alcoa dropped 3.4 percent after first-quarter sales missed projections and the company forecast a global supply glut for the metal in 2015. Bed Bath & Beyond declined 5.4 percent, leading retailers down after lower-than-estimated earnings and outlook.

     The Standard & Poor’s 500 Index advanced 0.5 percent to 2,091.18 at 4 p.m. in New York, after trading around its average price for the past 50 days. The Dow Jones Industrial Average added 56.22 points, or 0.3 percent, to 17,958.73. The Nasdaq Composite Index increased 0.5 percent, while the Russell 2000 Index slipped 0.3 percent.

     “There’s no real news today except for jobless claims,” said Paul Zemsky, the head of multi-asset strategies at Voya Investment Management LLC, which oversees $213 billion. “The Hang Seng broke out to new highs and the Euro Stoxx did the same. Do you want to go home short with another strong night tonight? If I were a trader, I wouldn’t want to go home if you’re short the U.S.”

     The biggest three-day rally since January propelled the Stoxx Europe 600 Index above a previous all-time high reached in 2000. Hong Kong’s Hang Seng Index rallied overnight to a seven- year high.

     The S&P 500 posted a second day of gains after minutes Wednesday from the Federal Reserve’s latest meeting, held before last week’s worse-than-forecast jobs data, showed officials were split on whether they would raise interest rates in June. The benchmark gauge has fallen 1.2 percent from a March 2 record amid concern a stronger dollar and tumbling oil prices will hurt profits.

     JPMorgan Chase & Co. and Intel Corp. are among 35 S&P 500 companies reporting results next week. Analysts have slashed corporate profit projections, predicting a slump through September. Earnings fell 5.8 percent in the first quarter, they estimated, after having forecast an increase as recently as January.

     Still, projections have a history of pessimism. Going back five years in data compiled by Bloomberg, analyst predictions for S&P 500 companies were on average 5.1 percent lower than the final quarterly results.                        

     A report Thursday showed fewer Americans applied for unemployment benefits over the past four weeks than at any time in almost 15 years, signaling underlying strength in the labor market even as hiring cooled last month. Applications over the latest week climbed by 14,000 to 281,000. The median forecast of 45 economists surveyed by Bloomberg called for 283,000.

     The Chicago Board Options Exchange Volatility Index fell 6.4 percent Thursday to 13.09. The gauge, known as the VIX, marked its biggest two-day decline in almost two months, down 11 percent. About 6.1 billion shares changed hands on U.S. exchanges, 11 percent below the three-month average.

     Eight of the S&P 500’s 10 main groups rose, led by energy shares’ 1.5 percent gain as West Texas Intermediate crude advanced after a 6.6 percent plunge Wednesday. Baker Hughes Inc., Transocean Ltd. and Marathon Oil Corp. all climbed at least 2.6 percent.

     Health-care companies advanced as Mylan NV reached an all- time high, adding 2.5 percent to a 15 percent rally Wednesday after it offered to buy Perrigo Co. for $28.9 billion.

     Express Scripts Holding Co. climbed 4.9 percent to a record after Walgreens Boots Alliance Inc.’s chief executive said the company is looking into a buyout of a company in the drug- distribution supply chain or a joint venture with a partner. Walgreens rose 5.6 percent.

     Altera Corp. rallied 3.2 percent, leading semiconductor companies higher, as investors bet it would be forced to reconsider a $54-per-share takeover offer from Intel Corp. Altera fell as much as 7.9 percent, as people familiar with the negotiations said the company broke off talks to be acquired. Intel slipped 0.2 percent. Nvidia Corp. and Micron Technology Inc. added at least 2.3 percent.

     General Electric Co. jumped 2.9 percent, the most in the Dow. It’s near an agreement to sell a real estate portfolio worth as much as $30 billion to Blackstone Group LP and Wells Fargo & Co., according to a person with knowledge of the matter.

     Consumer discretionary and financial companies lagged for most of the session before erasing declines late in the day. Bed Bath & Beyond retreated 5.4 percent, its biggest drop in three months, while Macy’s Inc. slid 2.6 percent after reaching a record Wednesday. Home Depot Inc. lost 0.9 percent, the leading decline in the Dow.

     Costco Wholesale Corp. fell 2.1 percent, the most in two months, after releasing March sales numbers that were lower than analysts’ estimates. The company’s sales are subject to falling gas prices and foreign exchange pressure, Bloomberg Intelligence reported.

     Real-estate companies within the S&P 500’s financial group dropped the most, with Essex Property Trust Inc., Equity Residential and Kimco Realty Corp. losing at least 2.6 percent.

Have a wonderful evening everyone.

Be magnificent!

First of all, accept yourself.

When you do not accept yourself and imagine yourself to be someone different,

a conflict arises between what you believe you are and what you really are.

Swami Prajnanpad

As ever,

Carolann

No one has ever become poor by giving.

                    -Anne Frank, 1929-1945

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