February 13, 2019 Newsletter

Dear Friends,

Tangents:

February 13, 1997 – The Dow Jones industrial average broke through the 7,000 barrier for the first time, closing at 7,022.44.  Go to article »

1741 ~ First magazine published in the US.
1945 ~ Dresden fire bombing.

Digital Artist’s Canvas:
Painting en plein air is the embodiment of the romance of the Impressionist movement….Now, we have Procreate – an app available on the AppStore for the iPad and iPhone for $9.99.  It’s a digital artist’s canvas optimized for use with the Apple Pencil, and it works with fingers, too.  Pros and amateurs alike praise its precision and emulation of traditional mediums: It’s great for letting your creative impulses loose on the go – or on your couch.  -CSM.

PHOTOS OF THE DAY

Folk artists throw molten iron to create sparks during an event to celebrate the Chinese Lunar New Year, in Shangqiu, Henan province, China. Credit: Reuters

Robert Tomlinson, a fourth-generation rhubarb farmer, harvests forced rhubarb by candlelight on his farm in Pudsey, near Leeds. Mr. Tomlinson’s farm falls within the ‘Rhubarb Triangle’, the area defined between the three cities of Leeds, Wakefield and Bradford, which is synonymous with the commercial growing of forced rhubarb since the 1870’s. The rhubarb is grown in dark, heated shed and harvested by candlelight to prevent the plant from producing chlorophyll, which preserves its colour and make the rhubarb sweeter and more tender. Credit: Oli Scarff/AFP/Getty Images

A squirrel pauses by a single purple crocus in Royal Victoria Park, bath, where mild weather has caused an early bloom of the traditional Spring flower. Credit: Ben Birchall/PA
Market Closes for February 13^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks slipped as disappointing earnings reports from Barrick Gold Corp. and Teck Resources Ltd. offset gains in energy and pot stocks.
     The S&P/TSX Composite Index lost 0.1 percent to 15,626.73. Materials stocks fell 0.8 percent as the influential miners retreated. Teck slid 5.5 percent, the most in six weeks, after fourth-quarter earnings missed analyst estimates, while Barrick lost 3.9 percent after the company said it expects costs to rise this year.
     Energy stocks added 0.7 percent as crude prices climbed for a second day amid dwindling shipments from Venezuela and Saudi Arabia. Cenovus Energy Inc. gained 5.9 percent to the highest since early December after analysts said weak pricing that hit fourth-quarter results is in the rearview mirror.
In other moves:
Stocks
* West Fraser Timber Co. lost 2.2 percent. The company’s fourth- quarter results missed the lowest estimate but its CEO said he expects a turnaround for lumber demand this year
* First Capital Realty Inc. rose 2.8 percent to the highest since October 2016 after saying it plans to reorganize into a real estate investment trust
* Birchcliff Energy Ltd. gained 3 percent after fourth-quarter earnings per share beat the highest estimate
Commodities
* Western Canada Select crude oil traded at a $10.25 discount to WTI
* Gold rose 0.1 percent to $1,310.80 an ounce
FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.3257 per U.S. dollar
* The Canada 10-year government bond yield rose 2 basis points to 1.93 percent
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — U.S. equities put in their fourth straight session of gains as optimism over trade negotiations countered some of the jitters that Senator Marco Rubio triggered when he announced a bill to tax buybacks on equal footing with dividends.
     Rubio’s tweet Wednesday about his buyback proposal slowed an advance in the S&P 500 Index, but the benchmark still finished higher, even after Netflix dragged on the communication-services sector late in the day. The dollar gained and Treasuries edged lower as data showed U.S. inflation remained contained.
     Equities have been climbing this week in part on news that President Donald Trump is open to extending a March 1 deadline to raise tariffs on Chinese products if the two sides are near an agreement. High-level talks between the U.S. and China are set for later this week. Also buoying stocks was news that Trump is closer to accepting a border spending deal, averting another government shutdown.
“Moving forward, we’re going to have to see a resolution to some of these big-picture items before we’ll see the markets make a clear move higher,’’ said Chris Gaffney, president of world markets at TIAA Bank in St. Louis.
     Oil continued its rebound from a two-week low, after Saudi Arabia pledged to deepen output cuts, and held most of those gains even after U.S. crude stockpiles came in larger than anticipated. Energy shares led gainers on the S&P 500; utilities lagged.
     The U.S. inflation numbers bolstered the Federal Reserve’s decision to be patient on raising interest rates. And with major central banks seemingly on pause or turning dovish, investor attention now appears firmly focused on the outlook for global trade and the chances of progress at the next round of talks between the U.S. and China in Beijing. Protectionist measures have been heaping pain on many large economies, some of which are also grappling with a slowdown in growth.
     Shares in Shanghai surged on trade hopes, and the Stoxx Europe 600 Index rose for a third day. The euro weakened after a report showed industrial production across the 19-nation region is falling at the fastest pace since the financial crisis.
Here are some key events coming up:
* Chinese Vice Premier Liu He is expected to join U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in high-level trade talks Thursday and Friday.
* Earnings season continues with reports from companies including Cisco, Vivendi, Nvidia, Nestle, Coca-Cola and Credit Suisse.
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.3 percent to a 10-week high as of 4:03 p.m. New York time.
* The Dow Jones Industrial Average gained 0.5 percent; the Nasdaq 100 was little changed.
* The Stoxx Europe 600 Index rose 0.6 percent to its highest in a week.
* The U.K.’s FTSE 100 Index rose 0.8 percent to a four-month high.
* The MSCI Emerging Market Index fell 0.2 percent. 
Currencies
* The Bloomberg Dollar Spot Index rose 0.5 percent to a six-week high.
* The euro decreased 0.5 percent to $1.1267.
* The British pound fell 0.3 percent to $1.285.
* The Japanese yen dropped 0.5 percent to 111.00 per dollar.
Bonds
* The yield on 10-year Treasuries rose two basis points to 2.71percent.
* Germany’s 10-year yield fell one basis point to 0.12 percent.
* Britain’s 10-year yield fell less than one basis point to 1.182 percent.
Commodities
* The Bloomberg Commodity Index gained 0.1 percent.
* West Texas Intermediate crude climbed 1.7 percent to $53.99 a barrel.
* Gold fell 0.4 percent to $1,306.20 an ounce, a two-week low.
–With assistance from Masaki Kondo, Adam Haigh, Luke Kawa and Robert Brand.

Have a great night.

Be magnificent!

As ever,

Carolann

Politics is not the art of the possible.  It consists in choosing between
the disastrous and the unpalatable.
                                 -John Kenneth Galbraith, 1908-2006

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

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