March 28, 2017 Newsletter

Dear Friends,

Tangents:
On March 28, 1979, America’s worst commercial nuclear accident occurred inside the Unit Two reactor at the Three Mile Island plant near Middletown, Pa.
Go to article »

Ours is a world of nuclear giants and ethical infants.  If we continue to develop our technology without wisdom or prudence,
our servant may prove to be our executioner. –Omar Bradley.

On March 29^th, 1857, Edward Fitzgerald wrote to E.B. and Elizabeth Cowell:
Now the black trees in the Regent’s Park opposite are beginning to show green buds; and men come by with great baskets of flowers; primroses, hepaticas, crocuses, great daisies etc., calling as they go, “Growing, growing, growing!  All the glory going!”  -from The Book of Days.
PHOTOS OF THE DAY

Cherry trees line a road in Gui’an new district, Guizhou province, China, on Monday. China Daily/Reuters

A man carries children to school on his bicycle in Srinagar, Indian-administered Kashmir, on Tuesday. Danish Ismail/Reuters

The Oxford University men’s crew team take their oars and boat out of the water following training on the River Thames in London on Tuesday. Toby Melville/Reuters
Market Closes for March 28^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
NUMBER OF THE DAY
$81 million
The amount for which Pacific Investment Management Co. settled a breach-of-contract suit filed by former star manager Bill Gross, ending a feud that shook the investing world. 
Canada
By Kristine Owram
     (Bloomberg) — Canada’s benchmark equity index gained for a fifth day as strength in energy and financial stocks offset large declines in gold producers.
     The S&P/TSX Composite Index rose 92 points or 0.6 percent to close at 15,598.57 as a spike in U.S. consumer confidence renewed investor optimism in the strength of the world’s biggest economy.
     The energy index gained 1.4 percent as the price of oil jumped 1.3 percent to $48.35. The materials index fell 1.7 percent as the spot gold price got crushed by a spiking U.S. dollar.
     In other moves:
* Goldcorp Inc. plunged 6.9 percent, the most since October 4, after it announced a partnership with Barrick Gold Corp. to develop a deposit in Chile. Barrick fell 2.5 percent
* Home Capital Group Inc. fell 9.6 percent after its board removed CEO Martin Reid amid an investigation into falsified mortgage documents
* BRP Inc. rose 6.5 percent, touching a three-year high.
US
By Oliver Renick
     (Bloomberg) — U.S. stocks climbed amid a rebound in financials and a rally in energy and materials companies.
     The S&P 500 jumped 0.7 percent to 2,359 at 4 p.m. in New York, as European markets climbed. The U.S. benchmark sparked a recovery in foreign markets as it pared losses to 0.1 percent on Monday, after posting its biggest five-day drop since November last week. The Dow Jones Industrial Average added 151 points to 20,702.
* Financial shares rally 1.4% for biggest jump since March 1
* Energy and materials stocks up at least 1.1% with West Texas crude ahead 1.3% and Bloomberg Commodity Index rising for 1st time in 7 sessions
* 10-year Treasury yield up 4bps to 2.42%
* VIX down for 3rd session to 11.5
* Volume 4.7% below YTD average
* While there is investor skepticism that Trump will fare better on tax reform and infrastructure spending than on health care, “some in the market do appear to want to give him the benefit of the doubt for now,” Michael Hewson, chief market analyst at CMC Markets, wrote in a note
* ECONOMY:
** Richmond Fed March mfg. survey at 22 vs est. 15
** Consumer confidence jumped in March to the highest in more than 16 years
** U.S. merchandise-trade deficit narrowed by more than projected in February
** U.S. Feb. advance wholesale inventories rose 0.4%; est 0.2%
** Home prices in 20 U.S. cities climbed in the 12 months through January at the fastest pace since July 2014
** Federal Reserve Bank of Chicago President Charles Evans said two interest rate increases may be right for this year, given uncertainty surrounding the outlook for inflation and government spending
** Dallas Fed President Robert Kaplan said the central bank is making slow and gradual progress toward its inflation goal
* EARNINGS (S&P 500):
** After-market Tuesday: RH (RH)
** Pre-market Wednesday: Paychex (PAYX)

Have a wonderful evening everyone.

Be magnificent!

Fearlessness is the first requirement of spirituality.
Cowards can never be moral.
Mahatma Gandhi

As ever,

Carolann

Forgiveness is a virtue of the brave.
     -Indira Gandhi, 1917-1984

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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com