May 9, 2019 Newsletter

Dear Friends,

Tangents

Billy Joel, singer, songwriter, b. 1949.
I’d rather laugh with the sinners than cry with the saints, sinners are much more fun. –Billy Joel.

THE POEM:

Perched In These Green Mountains

                         -by David Budbill
Han Shan says, Perched in these green mountains,
letting my hair grow white, pleased with the years gone by,
happy with today.

Imagine such contentment, happiness with yourself.
Yet I know for Cold Mountain, tomorrow always brought
something else as well, for Han Shan also said,

If you hide yourself away in the thickest woods,
how will your wisdom’s light shine through?
A bag of bones is not a sturdy vessel.

Back and forth, back and forth.
That’s the way it goes.
Happy and content one day,

ambition and desire eat you alive the next.
It’s always been this way.  Back and forth,
back and forth.  That’s the way it goes.

“Cold Mountain” is another name for the poet Han Shan.
PHOTOS OF THE DAY

The sun is setting behind lines of trees as seen from Kathmandu, Nepal     CREDIT: NARENDRA SHRESTHA/EPA-EFE/REX

Japan’s new Emperor Naruhito attends a ritual called Chokushi-Hakken-no-gi, a ceremony of dispatching Imperial Envoys to the Jingu (IsaGrand Shrine) and Mausolea of Emperor Jinmu and the 4 recent emperors up to Emperor Showa, at the Imperial Palace in Tokyo, Japan     CREDIT: IMPERIAL HOUSEHOLD AGENCY OF JAPAN/HANDOUT VIA REUTERS

A dust storm is seen in Mildura, Victoria, Australia     CREDIT: ANDREW THOMAS/VIA REUTERS
Market Closes for May 9^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1901, as competing bull and bear factions tried to corner the market in Northern Pacific railway stock, the shares hit $1.000—up from $96 only five weeks earlier. Then the market crashed, with the Dow plunging 6.1% on near-record daily volume. And Samuel Bolton, a leading brewer in Troy, N.Y., who had lost a fortune speculating on stocks, committed suicide by diving into a vat of hot beer.
ICYMI
The yield curve is inverted again.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks recovered from early losses, joining a bounce in U.S. equities, after President Trump said a trade deal with China was still possible to reach this week. The S&P/TSX Composite Index closed down 0.5% to 16,321.75 in Toronto.
     Health care and consumer discretionary led the decline while consumer staples and utilities were the only gainers among major industries.
     In economic news, Canada’s trade sector posted a much- needed rebound, with shipments up across the board in what was a positive end to a tough first quarter for the nation’s exporters. Exports jumped 3.2 percent in March, largely due to increases in volumes rather than prices, Statistics Canada said Thursday from Ottawa.
In other moves:
Stocks
* Stars Group jumped 15% on news that Fox Corp. is buying 4.99% of the gaming giant and starts its own sports wagering platform
* Cascades rose 9.8% after 1Q adjusted EPS beat estimates
* Spin Master fell 4.5% after reporting an unexpected 1Q loss
* Magna International tumbled 10% after cutting outlook on a global auto slowdown
* Cronos Group fell 8.1% after 1Q revenue missed estimates
Ratings
* ABX CN: Barrick CEO Slams Trade Spat, Livent Tanks: N.A.
Materials Wrap
* CPG CN: Crescent Point Energy Upgraded to Buy at Canaccord
* FTT CN: Finning International Upgraded to Buy at TD; PT C$29
* QSR CN: Restaurant Brands Rated New Hold at Jefferies
* PEY CN: Peyto Exploration Upgraded to Buy at GMP; Price Target C$9.50
* TCN CN: Tricon Capital Group Downgraded to Buy at TD; PT C$13.50 TCX CN: Tucows Downgraded to Hold at Echelon Wealth
* TS/B CN: Torstar Upgraded to Buy at TD; Price Target C$1.25
* WDO CN: Wesdome Gold Mines Upgraded to Buy at Eight Capital; PT C$5.25
Commodities
* Western Canada Select crude oil traded at a $13.20 discount to WTI
* Gold spot prices rose 0.2% to $1,284 an ounce
FX/Bonds
* The Canadian dollar rose 0.1% to C$1.3465 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.68%
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — U.S. stocks finished off the lows of the day after President Donald Trump said a trade deal with China is still possible even as a deadline approached for reciprocal tariffs to be imposed by the two feuding countries. The yuan fell to its weakest since January.
     The S&P 500 declined for a fourth consecutive session, leaving the index on pace for its worst week of the year. The bellwether had slumped as much as 1.5% before Trump said he received a “beautiful letter” from Chinese President Xi Jinping and that the two leaders would probably speak by phone. The Stoxx Europe 600 fell the most this year, while the MSCI Asia Pacific gauge dropped the most in six weeks. The gap between 3- month and 10-year Treasury rates briefly turned negative, traditionally a recession warning.
     “When you think about just how much uncertainty there is on that front, the dip we’re seeing is really not that substantial,” said Mike Loewengart, vice president of investment strategy at E*TRADE Financial. “To be sure things could get far worse, but if you look at the remarkable trajectory of the market so far this year, this week’s declines are a minor speed bump at this point.”
     Trade discussions will resume hours after concerns flared again about the strength of the Chinese economy — the country’s credit growth slowed in April to a level below all 27 estimates in a Bloomberg survey. Beijing has warned it will retaliate should the U.S. hike tariffs as advertised on Friday.
     “If tariffs are increased at 12:01 a.m. Friday, the decline in risk assets is likely to intensify,” said Dennis DeBusschere, head of portfolio strategy at Evercore ISI. Meanwhile, simmering geopolitical tension elsewhere — from North Korea testing missiles again to renewed stress between America and Iran — added to the gloomy mood. Crude oil edged lower and emerging-markets stocks tumbled. Developing-nation currencies weakened. The lira trimmed some losses after Turkey’s central bank unexpectedly raised borrowing costs for the country’s lenders.
     Here are some notable events coming up:
* The U.S. releases the April CPI report Friday.
These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.3 as of 4:03 p.m. New York time, while the Nasdaq Composite Index dropped 0.4% and the Dow Jones Industrial Average slumped 0.5%.
* The Stoxx Europe 600 fell 1.7%. 
* The MSCI Emerging Market Index dropped 2.1%.
* The MSCI Asia Pacific Index slumped 1.4%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro rose 0.2% to $1.1219 while the yen strengthened 0.4% to 109.72 per dollar.
* The British pound was little changed at $1.3015.
* The MSCI Emerging Markets Currency Index eased 0.6%.
Bonds
* The yield on 10-year Treasuries fell 3 basis points to 2.45%.
* Germany’s 10-year yield fell less than 1 basis point to negative 0.05%.
Commodities
* West Texas Intermediate fell 0.9% to $61.57 a barrel.
* Gold rose. 0.2% to $1,284 an ounce.
* The Bloomberg Commodity Index fell 0.6%, the third decline in four days. 
–With assistance from Andrew Dunn and Luke Kawa.

Have a great night.

Be magnificent!
As ever,

Carolann

Knowledge may give weight, but accomplishments give lustre, and many more people see than weigh.

                                                                      -Lord Chesterfield, 1694-1773

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