February 7, 2017 Newsletter

Dear Friends,

Tangents:
On Feb. 7, 1964, the Beatles arrived in the United States for the first time, giving rise to Beatlemania.

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PHOTOS OF THE DAY

A woman plays with her daughter in a field of anemones near Kibbutz Alumim in southern Israel on Tuesday. Amir Cohen/Reuters

Actor and model Jason Duaval Hunter poses for a photo with the art installation ‘We Were Strangers Once Too’ on Tuesday in New York’s Times Square. The 10-foot-high, red and pink heart incorporates 2015 census data. Thirty-three metal poles are inscribed to represent the national origins and shifting populations of foreign-born New York City residents. The installation will be on view until March 5. Mary Altaffer/AP
Market Closes for February 7^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Joseph Ciolli
     (Bloomberg) — Canadian stocks rose for a second time in three days as industrial and financial shares climbed, offsetting losses in energy companies.
     The S&P/TSX Composite Index gained 0.2 percent to 15,486.63 at 10:23 a.m. in Toronto. The gauge sits 0.9 percent from a more than two-year high reached on Jan. 25. The index finished 2016 as the best-performing developed stock market and posted its seventh straight monthly increase in January.
     Parex Resources Inc. surged as much as 8.5 percent, the biggest intraday increase since Nov. 30, following a year-end 2016 reserve report. Haywood Securities analyst Darrell Bishop wrote in a note that the report was “excellent,” and said that company’s cash flow-funded growth under current oil prices is “unmatched.”
     In other moves:
* Ensign Energy Services Inc., Surge Energy Inc. and Bonavista Energy Corp. decreased more than 2.2 percent as crude oil fell 1.6 percent
* Asanko Gold Inc., Pretium Resources Inc. and Endeavour Mining Corp. lost at least 1.8 percent as a Bloomberg index of commodities slipped as much as 0.4 percent before paring loss.
     (Canadian Press) — TORONTO — The loonie fell for a third consecutive day while the price of oil continued its slide, as uncertainty around U.S. President Donald Trump kept North American stock markets relatively flat Tuesday.
     The Canadian dollar shed 0.46 of a U.S. cent to 75.95 cents US. It has lost 0.85 of a U.S. cent over the past three trading days.
     Most strategists on the currency side have been surprised with the loonie’s strength, said Scott Vali, vice president of equities and a portfolio manager at CIBC Global Asset Management.
     Last week, the Canadian dollar was trading at its highest levels in nearly five months.
     The commodity-sensitive loonie had been boosted by the price of oil, he said, rather than weakening on the strength of the greenback as some analysts have expected.
     But the recent drop in oil prices has sent the loonie falling as well, said Vali.
     The March crude contract was down 84 cents at US$52.17 per barrel, for a week’s loss of US$1.66 so far.
     It’s “a bit of a seasonal pause,” says Vali, as oil prices typically experience a weaker period from February through to March.
     During that time, demand for refined product is weaker and refiners typically shut down for annual maintenance, he said.
     But as demand picks up between April and June, Vali expects prices will as well.
     Though, he adds, that does somewhat depend on whether or not the members of the Organization of the Petroleum Exporting Countries are abiding by the oil production quotas they’ve put in place — a development the market is watching closely.
     With lower oil prices, the energy sector on the Toronto Stock Exchange’s main index underperformed with stocks in the sector losing nearly one per cent of their worth on average.
     Still, the S&P/TSX composite index gained 41.86 points to 15,498.80.    
     Bay Street and Wall Street are taking a bit of a breather from their rally following the election of Trump.
     The markets are questioning whether some of his recent moves, like an executive order imposing a 90-day travel ban into America on travellers from seven predominantly Muslim countries, will challenge the growth they’ve been anticipating during his tenure at the White House, Vali said.
     Elsewhere in commodities, the April gold contract rose $4.00 to US$1,236.10 an ounce, March natural gas gained eight cents to US$3.13 per mmBTU, and March copper contracts fell around two cents to about US$2.63 a pound.   
US
By Oliver Renick
     (Bloomberg) — U.S. stocks pared an earlier advance Tuesday as crude oil extended losses and investors continued to sift through earnings reports for clues on the economy’s health.
     The S&P 500 Index added less than 0.1 percent to 2,293.08 at 4 p.m. in New York, while the Dow Jones Industrial Average climbed 38 points to 20,083 after earlier reaching an intraday record.
* Industries mixed with energy shares underperforming as consumer staples shares lead advance, up 0.8%
* Tech up 0.4% as phone and utility stocks gain; 10-year Treasury yields down 1.6%
* Energy down 1.7% after weighing on market Monday as oil slides for third session
* VIX reversed earlier gain to end 0.7% lower at 11.3
* The U.S. Commerce Department said the December trade deficit was little changed at $44 billion, compared with an estimate of $45 billion; the shortfall was marked by weaker overseas sales of U.S.-produced goods and stronger domestic demand for imported products as the dollar rallied in the second half of 2016
* Almost 30 members of the S&P 500 reported quarterly results today, including Walt Disney Co. and General Motors Co. With more than half the S&P 500 stocks having released earnings this season, about three-quarters beat profit estimates and about half beat sales estimates, according to data compiled by Bloomberg
* EARNINGS:
** After-market Tuesday: Pioneer Natural Resources (PXD), Mondelez International (MDLZ), Walt Disney (DIS), Plains All American Pipeline (PAA), Assurant (AIZ), New Relic (NEWR), Gilead Sciences (GILD), Genworth Financial (GNW), CSRA (CSRA), Buffalo Wild Wings (BWLD), Microchip Technology (MCHP), Fortive (FTV), Akamai Technologies (AKAM), Take-Two Interactive Software (TTWO), Twilio (TWLO), Yum China Holdings (YUMC), O’Reilly Automotive (ORLY)
** Pre-market Wednesday: Allergan (AGN), Exelon (EXC), Time Warner (TWX), Cognizant Technology Solutions (CTSH), Arch Coal (ARCH), GrubHub (GRUB), Jacobs Engineering Group (JEC), Goodyear Tire & Rubber (GT), Humana (HUM), Alaska Air Group (ALK)

Have a wonderful evening everyone.

Be magnificent!

Does distress and despair, melancholy, and madness come from God?
Does pleasure and prosperity, joy, and reason come from God?
Was the human form, in all its beauty, designed by God?
Does God give each person a distinct character and appearance?
Does God give men and women the ability to think?
Does God give human beings the urge to worship?
Does God plant the notions of truth and untruth in the human mind?
Does God decide when human beings should die?
Does God offer the hope of immortality?
Atharva Veda

As ever,

Carolann

When your passion and drive are bigger than your fears, you just drive.
                                                                     -Viola Davis, b. 1965

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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
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www.carolannsteinhoff.com