July 24, 2017 Newsletter

Dear Friends,

Tangents:

Pioneer Day: Mormons enter Salt Lake City, Utah, July 24^th, 1847. 

Birthdays:
1783: Simon Bolivar, South America liberator.
1802: Alexandre Dumas, writer.
1898: Amelia Earhart, aviatrix.
1900: Zelda Fitzgerald, writer.
1970: Jennifer Lopez, actor. 

On July 24, 1959, during a visit to the Soviet Union, Vice President Richard M. Nixon got into a discussion at a U.S. exhibition with Soviet leader Nikita Khrushchev that was dubbed the ”kitchen debate.”
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PHOTOS OF THE DAY

Russian and Maltese ballet dancers from various Moscow and Malta theatres perform during the premiere of “Crystal Pallace” by Russian contemporary composer Alexey Shor, as part of the celebrations commemorating the 50^th anniversary of diplomatic relations between Malta and Russia, in Vallette, Malta. CREDIT: DARRIN ZAMMIT LUPI/REUTERS.

An alphorn player leaves after taking part in a group performance during the 16^th International Alphorn Festival in Nendaz, south-western Switzerland. Over 180 alphorn players performed in Nendaz during the three-day festival. CREDIT: VALENTIN FLAURAUD/EPA.
Market Closes for July 24^th, 2017 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1987, the corporate assets of ZZZZ Best Co. are sold at bankruptcy auction in Los Angeles for $62,000. Less than four months earlier, the carpet-cleaning company run by 21-year-old whiz kid Barry Minkow had a stock-market value of roughly $300 million, having more than quadrupled since its IPO in 1986. But ZZZZ Best had virtually no customers, revenues or assets, and Minkow had set up an elaborate system of phantom offices and phony account records. Minkow served five years in federal prison.

Number of the Day
7
The number of consecutive sessions that the CBOE Volatility Index, or VIX, has closed under 10, the longest such streak in the index’s history.
Canada
By Natalie Wong
     (Bloomberg) — Canadian stocks fell as materials and industrials underperformed, offsetting a rise in technology.
     The S&P/TSX composite index fell 0.4 percent to 15,128.69.
Materials slipped 1.4 percent, the most intraday in two weeks, as Barrick Gold Corp. lost 4.9 percent and Yamana Gold Inc.
dropped 5.8 percent.
     Industrials retreated 0.8 percent, the lowest intraday in two months, as Canadian National Railway Co. fell 1.2 percent and Exchange Income Corp. dropped 7.9 percent, the worst- performing stock in the index, despite being defended by Canaccord Genuity today after short-seller Marc Cohodes sent the company’s stock tumbling last week.
     Information technology jumped 1.5 percent as Sierra Wireless Inc. rose 3.6 percent and Shopify Inc. gained 4.3 percent.
     In other moves:
* Energy fell 0.3 percent, continuing a three-day slump, as Nexgen Energy Ltd. lost 3 percent and Cenovus Energy Inc.
slipped 0.2 percent
* Turquoise Hill Resources Ltd. rose 4.8 percent, the highest intraday since May, and became the top-performing stock on the index
* Utilities lost 0.3 percent as Hydro One Ltd. dropped 0.3 percent and Algonquin Power & Utilities Corp. lost 1 percent.
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks ended mixed while Alphabet Inc.
slipped in after-hours trading as its results disappointed. The dollar stabilized after falling to a 15-month low to start a week packed with corporate results and a Federal Reserve rate decision.
     The Nasdaq 100 Index closed at a record, while the S&P 500 Index was little changed as its two largest groups by weighting advanced to offset broader declines. Alphabet Inc.’s shares dropped 2.7 percent as of 4:30 p.m. in New York after the Google parent reported results. The 10-year Treasury yield rose, the dollar strengthened. The euro fell for the first time in three days as data showed the region’s economy cooling. Crude gained.
     Earnings from industry bellwethers including Amazon.com Inc. and GlaxoSmithKline Plc and central bank policy discussions are set to provide the latest tests for the equity bull market, which has propelled the value of shares globally to $78 trillion. The euro-area manufacturing figures indicate that gross domestic product is expanding at the weakest pace in six months, adding further doubts about the sustainability of the stock rally at a time when the strong euro is weighing on exporters.
     Investors are also bracing for further surprises from Washington after President Donald Trump sought to impose order in his White House in the face of a widening Russia probe.
Senior adviser Jared Kushner confirmed four contacts with Russians during his father-in-law’s presidential campaign and the transition, but he described the encounters as unmemorable.
Donald Trump Jr. and former Trump campaign Chairman Paul Manafort will go before Senate committees on Wednesday.
          Here are some key events coming up this week:
* The U.K. begins post-Brexit trade talks with the U.S. in Washington.
* China posts industrial profits for last month, with early indicators pointing upward.
* Japanese June data also due this week may show sluggish CPI, even amid a tightening labor market and increased household spending.
* The U.S. central bank is expected to make no change to policy on Wednesday with investors and economists parsing the statement for clues on how officials plan to proceed in reducing their massive portfolio.
* The U.S. economy probably gained traction in the second quarter as spending by American consumers picked up after a lull early this year. The gross domestic product report follows the two-day Federal Reserve monetary policy meeting.
* Russia, Brazil, Colombia, Turkey and Nigeria announce rate decisions.
* Alphabet and Facebook Inc. results are on the calendar this week, as are those from Deutsche Bank AG, Nomura Holdings Inc., BNP Paribas SA and UBS Group AG.
     And these are the notable moves in markets: Stocks
* The S&P 500 fell 0.1 percent at 4 p.m. in New York. The measure is little changed since closing July 19 at a record.
Utility shares led declines, while banks and tech shares paced gains.
* The Nasdaq 100 Index rose 0.3 percent to close at a record.
* The Stoxx Europe 600 Index fell 0.2 percent to the lowest in more than three months on a closing basis.
* The U.K.’s FTSE 100 Index slumped 1 percent in the largest decrease since June 15.
* The DAX Index lost 0.3 percent to the lowest in more than three months as authorities said they are studying possible collusion among German automakers.
* The MSCI Emerging Market Index rose 0.4 percent to the highest in more than two years.
     Currencies
* The euro fell 0.2 percent to $1.1646.
* The British pound rose less than 0.1 percent to $1.30344, the biggest gain in more than a week.
* The Bloomberg Dollar Spot Index was little changed near the lowest in almost 15 months.
* The Japanese yen rose 0.1 percent to 111.074 per dollar on its fifth straight advance.
     Commodities
* West Texas Intermediate crude rose 1.3 percent to settle at $46.34 a barrel. Saudi Arabia pledged deep cuts to its crude exports, while Halliburton Co. said the shale boom is slowing down.
* Gold futures were little changed at $1,261.10 an ounce.
     Bonds
* The yield on 10-year Treasuries added one basis point to 2.25 percent.
* Germany’s 10-year yield were little changed at 0.508 percent on its seventh consecutive decline.
* Britain’s 10-year yield rose one basis point to 1.188 percent.

Have a wonderful evening everyone.

Be magnificent!

Love implies generosity, care, not to hurt another,
not to make them feel guilty, to be generous, courteous,
and behave in such a manner that your words and thoughts are born out of compassion.
Krishnamurti

As ever, 

Carolann

He who dares nothing, need hope for nothing.
–Johann Von Schiller, 1759-1805 

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