October 6, 2017 Newsletter
Dear Friends,
Tangents:
Carolann is out of the office this afternoon, I will be writing the newsletter on her behalf.
PHOTOS OF THE DAY
Thousands of light pink flamingos flock together and span across a backstop of stunning scenery. From sunset to sunrise, the tall pink birds maintain a close flock which creates a sea of identical figures. The Greater and Lesser flamingos mass together in their thousands at Lake Bogoria, in Africa’s Kenyan rift valley, to feed on the abundance of bacteria. Photographer Marco Gaiotti, 34, from Geneoa, Italy, had been on safari when he decided to journey off and capture this amazing ritual.
CREDIT: MARCO GAIOTTI/CLICKALPS/SOLENT NEWS & PHOTO AGENCY
Incredible images capture thousands of Mobula rays swimming around the bay of Cabo, Mexico. Von Karmel Henson, 30, from the Philippines, took the images snorkeling on holidays in Cabo San Lucas.
CREDIT: VON KARMEL HENSON/CATERS NEWS
Drone footage of the hidden lakes in Iceland. Iceland’s hidden lakes are revealed, crystal clear, for the first time in this stunning video. Aurel Manea, 34, had only seen grainy footage and heard rumours of these mysterious lakes. So when his friend revealed to him that he had some rough directions, he decided to go and find them.
CREDIT: AUREL MANEA/CATERS NEWS
Market Closes for October 6th, 2017
Market
Index |
Close | Change |
Dow
Jones |
22773.67 | -1.72
-0.01% |
S&P 500 | 2458.37 | -3.73
-0.15% |
NASDAQ | 6590.180 | +4.824
+0.07% |
TSX | 15720.98 | -55.32
|
-0.35% |
International Markets
Market
Index |
Close | Change |
NIKKEI | 20690.71 | +62.15 |
+0.30% | ||
HANG
SENG |
28458.04 | +78.86 |
+0.28% | ||
SENSEX | 31814.22 | +222.19 |
+0.70% | ||
FTSE 100* | 7522.87 | +14.88 |
+0.20% |
Bonds
Bonds | % Yield | Previous % Yield | |||
CND.
10 Year Bond |
2.124 | 2.100 | |||
CND.
30 Year Bond |
2.492 | 2.479 | |||
U.S.
10 Year Bond |
2.3661 | 2.3480 | |||
U.S.
30 Year Bond |
2.9032 | 2.8904 |
Currencies
BOC Close | Today | Previous |
Canadian $ | 0.79774 | 0.79576 |
US
$ |
1.25354 | 1.25666 |
Euro Rate
1 Euro= |
Inverse | |
Canadian $ | 1.47110 | 0.67977 |
US
$ |
1.17355 | 0.85212 |
Commodities
Gold | Close | Previous |
London Gold
Fix |
1261.80 | 1274.50 |
Oil | ||
WTI Crude Future | 49.29 | 50.79 |
Market Commentary:
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks fell the most in nearly five weeks as oil prices tumbled 3 percent in the biggest weekly decline since May.
The S&P/TSX Composite Index lost 48 points, or 0.3 percent, to 15,728.32. Energy stocks fell 1.1 percent, the most since August, with declines led by Baytex Energy Corp., down 5.4 percent, and Crew Energy Inc., off 4.4 percent.
The materials sector was the biggest outperformer, adding 0.2 percent after earlier falling as much as 0.9 percent. Gold prices reversed earlier losses to rise 0.1 percent, pushing Kirkland Lake Gold Ltd. up 5.7 percent.
In other moves:
Stocks
* Element Fleet Management Corp. rose 10 percent, the most since June. U.S. hedge funds Marcato Capital Management and Sachem Head Capital have taken a stake and urge it to explore a sale
* Shopify Inc. fell 2.6 percent. It lost 16 percent since Wednesday, when short-seller Citron Research called the company a “get-rich-quick scheme”
* Aritzia Inc. fell 5.8 percent, the most ever, after the retailer reported second-quarter revenue that missed the lowest analyst estimate
Commodities
* Western Canada Select crude oil traded at a $11.15 discount to WTI
* Aeco natural gas traded at a $2.51 discount to Henry Hub
* Gold rose 0.1 percent to $1,271.60 an ounce
FX/Bonds
* The Canadian dollar rose 0.3 percent to C$1.2535 per U.S. dollar as Canada’s labor market showed more signs of tightening in September
* The Canada 10-year government bond yield rose two basis points to 2.12 percent
US
By STAN CHOE
New York (AP) — U.S. stocks faded from their record highs on Friday, and the Standard & Poor’s 500 index was on track to snap out of its longest winning streak in four years. Treasury yields climbed after a report showed that wages across the country rose more than expected last month, which economists said should keep the Federal Reserve on pace to raise interest rates.
The government’s jobs report, often the most anticipated economic data of each month, was unusually difficult to parse after damage from recent hurricanes dragged down employment from Texas to Florida.
KEEPING SCORE: The Standard & Poor’s 500 index fell 7 points, or 0.3 percent, to 2,545, as of 11:20 a.m. Eastern time. If it stays there, it would be the first loss for the index in nine days.
The Dow Jones industrial average lost 27, or 0.1 percent, to 22,748, and the Nasdaq composite fell 12, or 0.2 percent, to 6,572. All three indexes closed at records on Thursday.
WASHOUT JOBS REPORT: Employers cut more jobs last month than they added, the first time that’s happened in seven years. It’s a sharp turnaround from earlier this year, when the strengthening job market was encouraging investors to push stocks higher and higher.
Economists had been warning of a particularly weak figure and cautioned not to take too much away from the report. Hurricanes Harvey and Irma meant the closure of thousands of businesses, and drops in employment at restaurants and bars were a big driver of last month’s decline.
Other recent economic data have been more encouraging, including particularly strong reports on the nation’s manufacturing and services sectors earlier this week.
Friday’s jobs report contained some encouraging signs. Average hourly wages jumped 2.9 percent in September from a year earlier, more than economists expected. Some of that may be due to how many lower-wage jobs were lost following the hurricanes, but the government also revised up its figure for wage growth in August.
YIELDS RISE: Stronger wage growth could push up inflation and keep the Federal Reserve on its course to slowly raise interest rates off their record lows.
The yield on the 10-year Treasury rose to 2.36 percent from 2.35 percent late Thursday after earlier touching 2.39 percent, its highest level since May.
The two-year yield climbed to 1.51 percent from 1.49 percent, and the 30-year yield held steady at 2.89 percent.
DIVIDENDS DOWN: Higher interest rates make bonds more attractive to investors looking for income, and that undercuts demand for stocks that pay relatively big dividends.
Telecom stocks in the S&P 500 fell 1.5 percent, the largest drop among the 11 sectors that make up the index. Other traditional dividend payers were also weak. Real estate stocks fell 0.7 percent, and utilities dropped 0.4 percent.
WAREHOUSE WEAKNESS: Costco Wholesale fell the most in the S&P 500 despite reporting stronger earnings for the latest quarter than expected. Analysts pointed to a slight drop in its membership renewal rates, among other factors.
Costco lost $10.01, or 6 percent, to $157.06.
COMMODITIES: Benchmark U.S. crude sank $1.60, or 3.2 percent, to $49.19per barrel. Brent crude, the international standard, lost $1.78 to $55.22 per barrel.
MARKETS OVERSEAS: The FTSE 100 in London rose 0.1 percent, France’s CAC 40 fell 0.5 percent and Germany’s DAX dipped 0.2 percent.
Japan’s Nikkei 225 rose 0.3 percent, and the Hang Seng in Hong Kong added 0.3 percent.
CURRENCIES: The dollar slipped to 112.81 Japanese yen from 112.85 yen late Thursday. The euro rose to $1.1721 from $1.1708, and the British pound fell to $1.3045 from $1.3116.
Have a wonderful Thanksgiving weekend everyone!
Be magnificent!
As ever,
“Be thankful for what you have; you’ll end up having more. If you concentrate on what you don’t have, you will never, ever have enough.” Oprah Winfrey
Karen
“When you practice gratefulness, there is a sense of respect toward others.” Dalai Lama
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