January 23, 2018 Newsletter

Dear Friends,

Tangents:
On Jan. 23, 1973, President Richard Nixon announced an accord had been reached to end the Vietnam War.
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On this day in 1849, Elizabeth Blackwell is granted a medical degree from Geneva College in New York, becoming the first woman to be officially recognized as a physician in U.S. history.
PHOTOS OF THE DAY

Marin Cilic of Croatia poses in Yayoi Kusama’s Flower Obsession room as he visits the Triennial exhibition at the National Gallery Victoria during an official event promoting the Australian Open tennis tournament in Melbourne, Australia.

A flock of Common Teal fly across a wetland on a winter day on the outskirts of Srinagar, Jammu and Kashmir.
Market Closes for January 23^rd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
$650 billion
The market value Tesla would have to reach for CEO Elon Musk to earn all 12 tranches of stock awards available to him under the company’s new compensation structure. The company currently has a market capitalization of $59 billion, and the top target would put Tesla fourth in the current ranking of U.S. companies by market cap.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose after trading in the red for much of the day, as the materials sector turned positive along with gold prices.
     The S&P/TSX Composite Index added 10 points or 0.1 percent to 16,357.55 after earlier falling as much as 0.6 percent. Materials shares rose 0.7 percent, with Kinross Gold Corp. up 5.4 percent and Barrick Gold Corp. gaining 2.3 percent.
     The energy sector added 0.3 percent, failing to keep pace with the 1.5 percent gain in the price of crude. Oil prices closed at their highest since December 2014 amid signs of dwindling U.S. stockpiles, but the discount for Canadian crude sank to the weakest in over four years.
     In other moves:
                         Stocks
* Pretium Resources Inc. tumbled 26 percent, the most since 2013, after reporting fourth-quarter gold production and 2018 guidance. Credit Suisse downgraded the stock, saying the results showed operational volatility
* Kinaxis Inc. gained 11 percent to the highest since June. Toyota selected the company to manage its automotive demand and supply chain processes
* Cara Operations Ltd. rose 9.8 percent, the most since 2015, on a deal to buy Keg Restaurants Ltd. for C$200 million
                        Commodities
* Western Canada Select crude oil traded at a $27.50 discount to WTI, the weakest in over four years, amid a lack of pipeline space
* Gold rose 0.4 percent to $1,336.70 an ounce
                        FX/Bonds
* The Canadian dollar strengthened 0.2 percent to $1.2423 per U.S. dollar
* The Canada 10-year government bond yield fell one basis point to 2.23 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks rose a third day, while emerging-market equities hit the highest in a decade as synchronized global growth boosts corporate profits. Oil jumped as the dollar fell.
     The S&P 500 Index closed at a fresh record as the strong start to earnings continued, with 82 percent firms that have reported topping estimates. Tech shares lifted the Nasdaq 100 Index to a fifth straight gain and the MSCI Emerging Markets Index powered to an eighth day of advances. The 10-year Treasury yield fell for a second session, while the dollar dropped toward lows of the year.
     “The earnings season is going phenomenally well, and the government shutdown on Friday was reversed yesterday, so we’ve got the government behind us for the next couple of weeks,” Phil Orlando, chief equity market strategist at Federated Investors, said by phone. “But the reason the stock market is up is very simply that investors are reflecting on the fact that earnings are much better than expected.”
     With earnings season in full swing, investors held to the risk-on stance that’s taken stocks around the world higher. The synchronized global economic recovery shows no signs of slowing and the BOJ’s signal added to optimism that central banks won’t rush to tap the brakes. Investors also kept an eye on Davos, Switzerland, where the world’s business elites gathered for an annual conference roiled by protectionist moves across the Atlantic.
     Here’s what to watch out for this week:
* Earnings season is in full swing: Novartis, General Electric, Intel, LVMH Moet Hennessy Louis Vuitton, Starbucks and Hyundai Motor all come later in the week.
* Barring any last minute changes in Washington, President Donald Trump will join world leaders and senior executives in Davos, Switzerland, for the annual World Economic Forum.
* The European Central Bank announces its rate decision on Jan. 25.
* The U.K. House of Lords is considering Prime Minister Theresa May’s Brexit bill this week.

     These are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.2 percent to 2,839.30 as of 4 p.m. New York time.
* The Dow Jones Industrial Average slipped 4 points to 26,210.40.
* The Nasdaq Composite Index advanced 0.7 percent.
* The Stoxx Europe 600 Index gained 0.2 percent, rising for the fourth day in a row.
* The MSCI All-Country World Index climbed 0.5 percent to the highest on record.
* The MSCI Emerging Market Index increased 1.1 percent to the highest in a decade.
                           Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent.
* The euro rose 0.3 percent to $1.2294.
* The British pound added 0.1 percent at $1.3996.
* The Japanese yen gained 0.5 percent to 110.33 per dollar, the strongest in almost 19 weeks.
                            Bonds
* The yield on 10-year Treasuries decreased three basis points to 2.62 percent.
* Germany’s 10-year yield was little changed at 0.56 percent.
* Britain’s 10-year yield was steady at 1.355 percent.
                           Commodities
* Gold rose 0.6 percent to $1,341.35 an ounce, set for the highest since September.
* West Texas Intermediate crude increased 2 percent to $64.75 a barrel.
* Copper futures fell 2.5 percent to $311.80 per pound, most since Dec. 5.

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

Man’s greatness lies in his power of thought.
                            -Blaise Pascal, 1623-1662

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

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