April 23, 2019 Newsletter

Dear Friends,

Tangents:
April 23, 2005 – Co-founder Jawed Karim uploaded the first video to YouTube.com.  Go to article »

William Shakespeare b. 1564
Michael Moore, filmmaker, b. 1954.
PHOTOS OF THE DAY

Princess Anne attends the King’s Troop Royal Horse Artillery 41 Gun Royal Salute to mark Queen Elizabeth II’s 93^rd birthday in Hyde Park, London. CREDIT: STEFAN ROUSSEAU/PA

The sky turns bright orange at sunrise above Colmers Hill near Bridport in Dorset. CREDIT: GRAHAM HUNT/ALAMY LIVE NEWS

Spain’s Rafael Nadal plays against Japan’s Kei Nishikori during a promotional tennis match at the Palau de la Musica in Barcelonaon the sidelines of the Barcelona ATP Open tennis tournament. CREDIT: PAU BARRENA/AFP/GETTY IMAGES
Market Closes for April 23^rd, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1996, Bre-X Minerals, an obscure Calgary-based company claiming to have discovered more than 30 million ounces of gold in Indonesia, was listed on the Toronto Stock Exchange. The stock rose to $192.50 within minutes. Over the next year, it turned out that the gold didn’t exist. One of Bre-X’s executives committed suicide by jumping out of a helicopter, and the company went bankrupt on Nov. 5, 1997.
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks hit a fresh record as crude prices settled at their highest level of the year and strong earnings boosted investor sentiment.
The S&P/TSX Composite Index added 0.6 percent to 16,669, bringing its 2019 gain to 16.4 percent. Energy stocks led the way, rising 1.2 percent as West Texas Intermediate prices climbed to the highest since October. Saudi Arabia was said to be tentative about raising output to offset U.S. sanctions against Iran.
Consumer discretionary stocks were close behind, adding a shade less than 1.2 percent. Dollarama Inc. gained 4.1 percent, the most since September, after investment research firm Hedgeye Risk Management saw 60 percent upside for the stock.
In other moves:
Stocks
* Teck Resources Ltd. closed up 0.6 percent after earlier rising as much as 4.6 percent. The miner’s first-quarter earnings beat estimates and it’s looking to sell stakes in two Latin American copper projects
* Extendicare Inc. gained 7 percent, the most since 2014. The senior-care company reached an agreement with an activist investor to nominate two directors to its board
* Harvest Health & Recreation Inc. added 7.5 percent. The U.S. cannabis company reported fourth-quarter revenue of $16.9 million, up 135 percent from a year earlier
* Kirkland Gold dipped 0.7%. Lakewood Capital said it deserves to fall to $17 as “operational momentum cools off” this year
Ratings
* AEM CN: Agnico Eagle Mines Upgraded to Buy at GMP; PT C$67
* ATD/B CN: Couche-Tard Could Add Earnings With Cumberland Deal: Macquarie
* EMA CN: Emera Cut to Market Perform at Raymond James; Price Target C$50
* EXE CN: Acreage Holdings, Horizon North, Teck: Canada Pre-Market
* FTS CN: Fortis Inc Cut to Market Perform at Raymond James; PT C$50
* K CN: Kinross Gold Downgraded to Neutral at Macquarie; PT C$5
* LGO CN: Largo Resources Rated New Buy at Paradigm Capital; PT C$2.30
* MEG CN: MEG Energy Upgraded to Buy at GMP; PT C$9.25
* PLI CN: ProMetic Life Sciences Cut to Hold at Canaccord; PT 5 Cents
* POW CN: Power of Canada Downgraded to Hold at TD; PT C$33
* PWF CN: Power Financial Downgraded to Hold at TD; Price Target C$35
** PWF CN: Power Financial, Power Corp. Sink as TD Downgrades Both to Hold
* WPM CN: Wheaton Precious Metals Downgraded to Hold at GMP; PT$32.75
Commodities
* Western Canada Select crude oil traded at a $11.25 discount to WTI, the widest gap since early March
* Gold fell 0.3 percent to $1,269.30 an ounce, the lowest since December
FX/Bonds
* The Canadian dollar weakened 0.6 percent to C$1.3433 per U.S. dollar
* The Canada 10-year government bond yield fell 4 basis points to 1.75 percent
US
By Vildana Hajric
(Bloomberg) — U.S. stock gauges closed at record highs on the back of better-than-forecast earnings while the dollar strengthened and Treasury yields dipped.
The S&P 500 Index and the Nasdaq Composite marked new milestones as Twitter, Lockheed Martin and Hasbro climbed following favorable first-quarter reports, adding to a rally led by the biggest technology companies. The gains cap a momentous run for U.S. equities, with the larger gauge of U.S. stocks up 25 percent from a low reached on Christmas Eve.
Investors found fresh catalysts to buy Tuesday as earnings season gathered steam with a slew of major releases due this week. So far, almost 80 percent of S&P 500 companies reporting results have exceeded estimates. Traders are also focused on the U.S. economy, as first-quarter gross domestic product data is due Friday. Worries over Brexit rumble on in the background, and trade spats between the world’s top economies remain unresolved. Investors are cheering “a really great string of earnings reports, most of them outpacing expectations, as well as some pretty good commentary on future estimates from CEOs,” said Jim Paulsen, chief investment strategist at Leuthold Weeden.
“There’s quite a bit of positivity carrying this to new highs.” The Stoxx Europe 600 Index rose as many markets reopened following the long Easter weekend. The pound weakened as U.K. Prime Minister Theresa May confronted further challenges to her leadership. The greenback reached a six-week high.
In Asia, trading volumes were below average ahead of Japan’s Golden Week extended holiday. Equities climbed in Tokyo and slipped in Shanghai. Sri Lankan stocks slumped and bonds fell for a second day after terror attacks on Easter Sunday killed more than 300 people.
Elsewhere, copper dropped alongside most metals and oil extended the previous session’s gains after the U.S. announced a tougher crackdown on supply from Iran.
Here are some notable events coming up:
* A Who’s Who of the tech world reports this week, with Amazon, Facebook, Microsoft and Tesla among the heavy hitters on tap. European bank earnings kick into full gear with reports from Deutsche Bank, UBS, Barclays and Swedbank.
* The Bank of Japan, Bank of Canada, Bank of Russia, Sweden’s Riksbank and Bank of Indonesia set monetary policy.
* Germany’s IFO data is released Wednesday.
* Japan’s Shinzo Abe meets leaders of the European Union Thursday before flying to the U.S. for a summit with President Donald Trump.
* The initial print on first-quarter U.S. GDP Friday will be closely watched for clues as to how the economy responded to the government shutdown and fallout from the fourth-quarter market rout.
These are the main market moves:
Stocks
* The S&P 500 Index rose 0.9 percent at the close of trading in New York.
* The Stoxx Europe 600 Index rose 0.2 percent.
* The MSCI Asia Pacific Index advanced 0.2 percent.
* The MSCI Emerging Markets Index rose 0.2 percent.
Currencies
* The Bloomberg Dollar Spot Index advanced 0.4 percent to the highest in six weeks.
* The euro declined 0.3 percent to $1.1222.
* The Japanese yen gained 0.1 percent to 111.83 per dollar.
* The British pound fell 0.3 percent to $1.294.
Bonds
* The yield on 10-year Treasuries decreased two basis points to 2.57 percent.
* Germany’s 10-year yield climbed two basis points to 0.04 percent.
* Britain’s 10-year yield rose three basis points to 1.22 percent.
Commodities
* West Texas oil rose 0.9 percent to $66.30 a barrel.
* Copper fell 0.2 percent to $2.902 a pound.
* Gold declined 0.2 percent to $1,272.34 an ounce, near a four-month low.
–With assistance from Cormac Mullen, Andreea Papuc and Eddie van der Walt.

Have a great night.

Be magnificent!
As ever,

Carolann

How wonderful it is that nobody need wait a single moment before starting to improve the world.
                                                                                                  –Anne Frank, 1929-1945

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
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www.carolannsteinhoff.com