May 16, 2017 Newsletter

Dear Friends,

Tangents:

On May 16, 1960, a harsh exchange between Soviet leader Nikita Khrushchev and President Dwight D. Eisenhower doomed a much heralded summit conference between the two nations, following the Soviet downing of an American U-2 reconnaissance plane.
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PHOTOS OF THE DAY

A woman examines ‘Monogram,’ a sculpture by artist Robert Rauschenberg, during a preview of a retrospective exhibit of his work at the Museum of Modern Art in New York. The exhibit opens on May 21. JUSTIN LANE/EUROPEAN PRESSPHOTO AGENCY

Snowplows clear snow at the Great St. Bernard Pass in Switzerland. VALENTIN FLAURAUD/EUROPEAN PRESSPHOTO AGENCY
Market Closes for May 16^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1972, economist Milton Friedman rings the opening bell at the Chicago Mercantile Exchange to inaugurate the world’s first day of trading in foreign-currency futures.
Number of the Day
65
The number of days it took the S&P to go from 2300 to 2400.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed lower after a rally in oil prices stalled, offsetting a gain in materials shares.
     The S&P/TSX Composite Index fell 86 points or 0.6 percent to 15,543.33 after earlier gaining as much as 0.5 percent. Energy stocks tumbled 1.2 percent as the price of West Texas Intermediate crude lost 0.4 percent. Early optimism about production cuts was tempered and investors are hoping data out Wednesday will show that the U.S. supply glut is easing. Bonterra Energy Corp. fell 3.2 percent and Cenovus Energy Inc. lost 2.9 percent.
     The materials index gained 0.7 percent as copper prices rallied. Ivanhoe Mines Ltd. and Turquoise Hill Resources Ltd. both added more than 5 percent.
     In other moves:
* Aimia Inc. lost a further 12 percent, adding to its rout since Air Canada said Thursday it would cut ties with the loyalty program and launch its own rewards plan; Aimia is down 63 percent since then
* BlackBerry Ltd. gained 5.3 percent. Macquarie raised its price target on the stock to a street high of C$16.20
* Air Canada added 5 percent to its highest level since 2007 after the Canadian government introduced legislation to raise the foreign ownership limit for major airlines
US
By Jeremy Herron
     (Bloomberg) — The dollar weakened for a fifth day as the euro rallied amid an ebbing of political risks in the region at the same time turmoil gripped Washington. Technology shares continued a rally, sending the Nasdaq Composite Index to fresh record.
     Chipmakers paced gains in U.S. shares Tuesday, while the S&P
500 Index touched an intraday record before selling in defensive shares dragged the measure lower. Treasuries climbed, with yields on the 10-year note holding near 2.32 percent. The greenback fell to a November low, helping emerging-market equities notch a seventh straight gain. Oil’s rally stalled, while gold’s extended to the longest in four weeks.
     Investors largely looked past the most recent in a string of negative events that have dogged Trump’s administration, even as the missteps likely add to doubts about his ability to deliver on plans to boost infrastructure spending and cut taxes. Focus instead remains on the strength of the global economy and central bank stimulus, though housing data Tuesday in the U.S. added to signs that growth is having trouble accelerating.
     What investors will be watching:
* Singapore exports and Malaysia CPI for April are due Wednesday, and the Australian jobs report comes a day later.
* The U.S. Energy Information Administration is projected to report that crude stockpiles declined by 2.67 million barrels in the week ended May 12, according to a Bloomberg survey of analysts.
* OPEC’s internal Economic Commission Board meets in Vienna Wednesday to discuss the market in preparation for the group’s formal meeting on May 25.
* Wednesday’s U.K. labor report may reveal pay rose 2.1 percent, down from 2.2 percent.
* Japanese GDP for the first quarter will be out on Thursday.

      And here are the main movers:
     Stocks
* The S&P 500 Index fell 0.1 percent to 2,400.67 at 4 p.m. in New York. It earlier touched an all-time high of 2,405.77.
* The Nasdaq Composite and Nasdaq 100 indexes added at least 0.3 percent to close at records. AMD Micro Devices Inc. jumped 12 percent on reports of a licensing deal.
* Home Depot Inc. rose 0.9 percent after earnings beat estimates. TJX Cos. slid 4.1 percent and Dick’s Sporting Goods Inc. lost 14 percent, the most since May 2014, as results disappointed.
* The Stoxx Europe 600 fell less than 0.1 percent.
* Emerging market equities rose a seventh day, the longest rally since March.

      Currencies
* The Bloomberg Dollar Spot Index slid 0.6 percent for a fifth straight loss that left it at the lowest since Nov. 8.
* The euro climbed 1.2 percent to $1.1087, the strongest level since Nov. 4.
* The yen rose 0.6 percent to 113.15 per dollar, after dropping 0.4 percent Monday.

      Commodities
* West Texas Intermediate oil slipped 0.4 percent to settle at $48.66 a barrel in New York, after surging 2.1 percent Monday.
* Brent for July settlement decreased 17 cents to $51.65 a barrel on the London-based ICE Futures Europe exchange.
* Gold futures rose 0.5 percent to settle at $1,236.40 an ounce, up for a fourth session.
* Lead fell to the lowest level since January as weak economic data from China added to worries about metals demand.

      Bonds
* The yield on 10-year Treasuries slipped two basis points to 2.33 percent after climbing two basis points Monday.
* Investors piled into long-dated European bond sales on Tuesday with the U.K. and France seeing orders of more than $67 billion following Emmanuel Macron’s election win.

Have a wonderful evening everyone.

Be magnificent!

Watching and listening are a great art.
By watching and listening we learn infinitely more than we do from any books.
Books are necessary, but watching and listening sharpen your senses.
Krishnamurti

As ever,

Carolann

It is better to fail at originality than to succeed in imitation.
                                                  -Herman  Melville, 1819-1891

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
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