November 2, 2017 Newsletter

Dear Friends,

Tangents:

ALL SOULS DAY, CHRISTIAN CALENDAR.
DAY OF THE DEAD, Dia de los Muertos, Mexico.

DEPARTED LEGEND: Rock legend Tom Petty, who died October 2^nd, was inducted into the Rock and Roll Hall of Fame in 2002.  Check out the musician and his band performing one of their most well-known hits, “American Girl,” for the ceremony via the hall of Fame’s video at  http://bit.ly/tompettyrockroll.

1971 – November 2 – Science – National Research Council scientist Gerhard Herzberg, and German-Canadian wins Nobel Prize in Chemistry for his work in molecular spectroscopy.

PHOTOS OF THE DAY

Starlings fly at dusk over Aberystwyth, Wales.

Deer silhouetted during the autumn sunrise at Fountains Abbey in North Yorkshire.

Mammatus clouds at St. Mary’s Lighthouse in Whitley Bay.

The finishing touches are added to a Spitfire model at West Quay, Southampton. A model Spitfire covered in 1,600 poppies was unveiled to commemorate Remembrance Day. The bright red, half-size replica stands in Southampton, Hants, the city where the famous World War II fighter plane was built by aeronautical company Supermarine and will remain by shopping centre West Quay until November 12.
Market Closes for November 2^nd, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
$1.4 billion
The amount of cash Tesla burned through in the third quarter en route to a $619 million loss.
Canada
By Kristine Owram
     (Bloomberg) — Canada’s equity benchmark fell for the first time in six trading days as weak results from North America’s largest pipeline operator weighed on energy stocks.
     The S&P/TSX Composite Index lost 14 points or 0.1 percent to 16,014.99. Energy shares retreated 1.2 percent as Enbridge Inc. fell 4.8 percent to the lowest in 20 months. Third-quarter profit missed estimates amid weakness in its natural gas business.
     The materials sector lost 0.4 percent as metals prices fell from recent highs. Utilities fell 1 percent as Algonquin Power & Utilities Corp. lost 3.3 percent following a deal to buy a 25 percent stake in Abengoa SA for $608 million.
     In other moves:
                         Stocks
* Sleep Country Canada Holdings Inc. tumbled 13 percent, the most ever, after a “challenging quarter” from Tempur Sealy International Inc. weighed on the sector and same-store sales missed estimates
* Kinaxis Inc. jumped 12 percent, the most since 2015, after better-than-expected earnings prompted an analyst upgrade
* Bombardier Inc. rose 6.1 percent to the highest since February 2015. The company won the first major sales agreement in 18 months for its C Series jet
                         Commodities
* Western Canada Select crude oil traded at a $13.85 discount to WTI, slightly narrower than Wednesday when it hit the widest gap since March as new oil-sands projects approach completion
* Aeco natural gas traded at a 74-cent discount to Henry Hub
* Gold remained relatively unchanged around $1,276.80 an ounce.
                          FX/Bonds
* The Canadian dollar strengthened 0.5 percent to C$1.2807 per U.S. dollar, the biggest gain in two weeks
* The Canada 10-year government bond yield fell two basis points to 1.96 percent
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks eked out a gain in the final half hour of trading, the dollar slumped and Treasuries advanced as investors reacted to details of the Republican plan to cut taxes.
     The S&P 500 Index ended higher on the strength of gains in financial and real-estate shares that advanced amid a drop in 10-year Treasury yields. Investors parsed the tax plan details for winners and losers, giving a boost to small caps on speculation they will benefit most from a proposal to cut the corporate tax rate. The housing sector was walloped on changes to how mortgage interest will be treated. 
     Facebook Inc. lost more than 2 percent after earnings disappointed, weighing on tech shares before Apple Inc. reports later Thursday. Time Warner Inc. tumbled on a Dow Jones report that the Justice Department may reject its takeover by AT&T Inc. Newell Brands Inc. sank the most in the S&P 500 on weak earnings.
     “Maybe people think there’s not enough things to raise revenue in there, which is going to be bad for the deficit which is bad for the dollar,” Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC, said by phone. “This is the House version of the bill, so whatever it is it has to match up with the Senate, and we’ll get a clearer picture.”
     Markets showed little reaction to President Donald Trump’s nomination of Jerome Powell to lead the Federal Reserve. The pound slumped and gilts surged after the Bank of England indicated its first rate hike in a decade might be the last for a while. U.S. crude closed at the highest level in more than two years.
     House Republican leaders rolled out their version of tax cuts that makes sweeping changes for business and individual rates. The bill would cut corporate tax rate to 20 percent and impose a tax of as much as 12 percent on multinational companies’ accumulated offshore earnings.
     Trump nominated Powell to the top job at the U.S. central bank, a decision that was greeted with a shrug by investors who see the Fed governor as a continuity candidate. Powell has generally backed current chair Janet Yellen’s cautious approach to withdrawing stimulus.
     Elsewhere, bitcoin extended gains for the fourth consecutive day, hitting $7,000 to establish a fresh record before paring the advance.
     Here are some of the remaining scheduled events this week:
* Trump starts an 11-day trip to Asia, his first as president, on Friday. Trade and security issues — particularly North Korea — will probably be in focus.
* The slew of earnings releases will culminate with Apple Inc. results.

      And these are the main moves in markets:
                           Stocks
* The S&P 500 rose less than one point at 4 p.m. in New York.
* An S&P index of homebuilders sank 2.6 percent, the most since September 2016. Home Depot Inc. lost 1.6 percent.
* The Nasdaq 100 Index lost 0.2 percent as Facebook Inc. lost 2.1 percent.
* The Stoxx Europe 600 Index decreased 0.7 percent, the first retreat in more than a week.
                           Currencies
* The Bloomberg Dollar Spot Index fell 0.3 percent to 1,181.30.
* The euro climbed 0.3 percent to $1.1651, the strongest in more than a week.
* The British pound decreased 1 percent to $1.311, the weakest in almost four weeks on the biggest tumble in almost 21 weeks.
* The Japanese yen was unchanged at 114.18 per dollar, the strongest in about six months.           
                           Bonds
* The yield on 10-year Treasuries fell three basis points to 2.35 percent, the lowest in two weeks.
* Britain’s 10-year yield decreased eight basis points to 1.26 percent, the lowest in more than two weeks on the largest tumble in three months.                          
                           Commodities
* West Texas Intermediate crude rose by 0.4 percent to settle at $54.54 a barrel, the highest since July 2015.
* Gold futures declined less than 0.05 percent to $1,276.90 an ounce. 
* Copper decreased 0.6 percent to $3.12 a pound.

Have a wonderful evening everyone.

Be magnificent!

Better never love,
if that love makes us hate others.
Swami Vivekananda

As ever,

Carolann

There was another life that I might have had, but I am having this one.
                                                            -Kazuo Ishiguro, b. 1954

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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