May 11, 2017 Newsletter

Dear Friends,

Tangents:

Look up at the full Moon tonight!

With spring in full bloom May’s Full Moon is commonly known as the Full Flower or Big Leaf Moon. The Arapaho Indians referred to this Full Moon as “when the ponies shed their shaggy hair”

MOON
-by Billy Collins

The moon is full tonight
an illustration for sheet music,
an image in Matthew Arnold
glimmering on the English Channel,
or a ghost over a smoldering battlefield
in one of the history plays.

It’s as full as it was
in that poem by Coleridge
where he carries his year-old son
into the orchard behind the cottage
and turns the baby’s face to the sky
to see for the first time
the earth’s bright companion,
something amazing to make his crying seem small.
 
And if you wanted to follow this example,
tonight would be the night
to carry some tiny creature outside
and introduce him to the moon.
 
And if your house has no child,
you can always gather into your arms
the sleeping infant of yourself,
as I have done tonight,
and carry him outdoors,
all limp in his tattered blanket,
making sure to steady his lolling head
with the palm of your hand.
 
And while the wind ruffles the pear trees
in the corner of the orchard
and dark roses wave against a stone wall,
you can turn him on your shoulder
and walk in circles on the lawn
drunk with the light.
You can lift him up into the sky,
your eyes nearly as wide as his,
as the moon climbs high into the night.

On May 11, 1973, charges against Daniel Ellsberg for his role in the Pentagon Papers case were dismissed by Judge William M. Byrne, who cited government misconduct.
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PHOTO OF THE DAY

Market Closes for May 11^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1861, the New York Stock Exchange bans all trading in Confederate stocks and bonds.
QUOTE OF THE DAY
One doesn’t paint the house in a little black dress … Detroit is trying to make us work in a tuxedo

Doug Cooper, a rancher north of Casper, Wyo., on refusing to buy a new truck. As auto makers load up their vehicles with gizmos and gadgets, they are leaving some drivers dazed, confused and frustrated.
Number of the Day
166 million
Snap reported 166 million daily users in the past quarter, up 8 million from the previous period and up 44 million from a year earlier—its slowest year-over-year growth rate in at least two years.
Canada
By Lu Wang
     (Bloomberg) — Canadian stocks fell after Moody’s Investors Service downgraded credit ratings at six of the country’s largest banks.
     The S&P/TSX Composite Index slipped 0.5 percent to 15,550.55 at 4 p.m. in Toronto as financial shares retreated 0.8 percent .
     Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada and Royal Bank of Canada had their debt ratings cut on concern that over-indebted consumers and high housing prices have left lenders vulnerable to potential losses.
     In other moves:
* Aimia Inc. tumbled 63 percent. Air Canada, the country’s largest airline, will launch its own loyalty program and end its relationship with Aimia, operator of the current Aeroplan, in 2020. Separately, GMP Securities analyst Martin Landry downgraded the stock to reduce from buy. Air Canada climbed 11 percent.
* Merus Labs International Inc. soared 59 percent after agreeing to be bought by Norgine for C$1.65 a share.
* Continental Gold Inc. surged 32 percent. Newmont Mining Corp. agreed to acquire 37.4 million shares of the gold producer for C$4.00 apiece.
* Magna International Inc. added 4.8 percent, after reporting first-quarter profit that beat analyst estimates. The auto supplier forecast full-year revenue of $36.6 billion to $38.3 billion, with the midpoint beating expectations.
* Real Matters Inc. was little changed at C$12.89 in its trading debut. The real estate data and software firm raised about C$157 million ($114 million) in the first major initial public offering by a Canadian technology company in two years.
US
By Cecile Gutscher and Jeremy Herron
     (Bloomberg) — U.S. stocks fell from records, though losses eased in afternoon trading as crude’s rally took the price of a barrel back above $48 in New York. Treasuries rose with gold as tepid earnings raised new doubts about the strength of the American consumer.
     The S&P 500 Index pared the worst of its declines by more than half as health-care and consumer-staples producers rebounded. Retailers remained under pressure as disappointing results from Macy’s Inc. and Kohl’s Corp. added to concerns that the U.S. consumer continues to hold back on spending. Canadian equities fell after Moody’s Investors Service cut ratings on six of the nation’s largest banks amid housing woes. The dollar was little changed, while Treasury yields slipped below 2.40 percent on 10-year notes. Oil rose past $48 a barrel.
     The weak sales at department stores underscored rising angst that the biggest part of the U.S. economy isn’t picking up the pace enough to raise growth rates. Investors will get a fresh read on Friday with U.S. retail sales. At the same time, political intrigue continues to roil Washington two days after the president abruptly fired the head of the FBI. The path for interest rates will remain a major focus amid growing bets for a Fed increase in June and talk of tapering by the European Central Bank.
     Read our Markets Live blog here.
     Here are the key events this week:
* March industrial production data the same day could prompt a revision to the first reading of euro-area GDP growth. Germany’s preliminary growth figure for the first quarter is also Friday.
     And here are the main moves:
     Stocks
* The S&P 500 lost 0.2 percent to 2,394.58 at 4 p.m. in New York, retreating from an all-time high.
* Macy’s fell the most since 2008 and to a six-year low, while Kohl’s slid to a 15-month low. Whole Foods Market Inc. led gains among consumer staples companies.
* The Russell 2000 Index slumped 0.7 percent for the biggest loss among major indexes.
* The S&P/TSX Composite Index slid 0.6 percent, with banks in the measure falling 0.8 percent to pace the drop. Valeant Pharmaceuticals International Inc. jumped 8.7 percent, pushing its three-day gain to 41 percent.
* Emerging-market equities climbed for a fourth session, leaving the MSCI gauge higher by 2.4 percent so far in the week.
* The Stoxx Europe 600 fell 0.6 percent, after gaining 0.2 percent Wednesday to the highest level since August 2015. 
     Currencies
* The euro fell 0.1 percent to $1.0861 even as the Bloomberg Dollar Spot Index slipped 0.1 percent. The yen advanced versus the dollar.
* The Canadian dollar dropped 0.3 percent after Moody’s Investors Service downgraded six Canadian banks.
     Bonds
* The yield on 10-year Treasury notes fell three basis points to 2.39 percent after rising for the past three sessions.
* German benchmark yields rose one basis point to 0.43 percent.
     Commodities
* Oil climbed for a second day, leaving the worst of last week’s rout behind for now, as U.S. stockpiles fell and two OPEC members said there’s a consensus to extend output cuts.
* West Texas oil rose 1.1 percent to $47.83 a barrel after jumping more than 3 percent Wednesday.
* Gold futures added 0.5 percent to $1,225.30 following the longest losing streak since October.
* Iron ore on SGX AsiaClear in Singapore fell as much as 4.5 percent to $59 a ton, the lowest since October amid a clampdown on leverage in China, the top consumer, and expanding global supply.
* Copper rallied after reports that China’s central bank will inject cash into the world’s second-largest economy.

Have a wonderful evening everyone.

Be magnificent!

All things are linked together through cause and effect.  There is no such thing as an accident,
When we cannot find the link between cause and effect in an event, we call it an accident.
Swami Prajnanpad

As ever,

Carolann

The whole problem with the world is that fools and fanatics
are always so certain of themselves, but wiser people
so full of doubts.
                                   -Bertrand Russell, 1872-1970

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