July 18, 2019 Newsletter

Dear Friends,

Tangents:  Start every day off with a smile and get it over with. -W.C. Fields, 1880-1946

On July 18, 1936, the Spanish Civil War began as Gen. Francisco Franco led an uprising of army troops based in North Africa.  Go to article »

-from the Stanford commencement speech by Steve Jobs, June, 2005:
Remembering that I’ll be dead soon is the most important tool I’ve encountered to help me make the big choices in life.  Because almost everything, all external expectations, all pride, all fear of embarrassment or failure – these things just fall away in the face of death, leaving only what is truly important.
Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose.  You are already naked.  There is no reason not to follow your heart.
PHOTOS OF THE DAY

The Lunar eclipse over Bembridge lifeboat station on the Isle of Wight.
CREDIT: BNPS

A hummingbird plays in water droplets sprayed from a sprinkler in California. US.
CREDIT: WEI LIAN/ SOLENT NEWS & PHOTO AGENCY.

People watch as the Saturn V rocket that took Apollo II to the moon is displayed on the Washington Monument on the National Mall during a light show in Washington, DC.
CREDIT: UPI/ BARCROFT MEDIA
Market Closes for July 18^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
All money is a matter of belief. -Adam Smith, 1723-1790.
On this day in 1996, “Chainsaw Al” Dunlap became chairman of Sunbeam, a maker of coffee machines, barbecue grills and massaging shower heads. The veteran tough-guy turnaround artist announced massive layoffs, factory closings, and other steps that he predicted would save the company $225 million and double revenues by 1999; the stock soared 50% on Dunlap’s first day. Less than two years later, Dunlap stepped down amid allegations of massive accounting fraud. He died earlier this year. 
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks finished higher Thursday, with material producers leading the way after gold and silver rose amid weaker U.S. dollar and Iran geopolitics. The S&P/TSX Composite Index up less than 0.1% to 16,494.23. Material stocks jumped 1.7% while Aurora Cannabis Inc. paced losses among pot shares.
Meanwhile, energy shares slipped along with oil. Crude prices slid to the lowest in almost a month as pessimism about a trade truce between the U.S. and China continued to dog markets, while the resumption of Russian pipeline flows fed worries about a supply glut.     In other moves:
Stocks
* Neptune Wellness Solutions jumped 16% after closing a private placement
* Sandstorm Gold rose 8.6%
* First Majestic Silver gained 6.3%
* iAnthus Capital Holdings lost 6.9%
* Aurora Cannabis fell 6.5% after BofA downgraded to neutral
Ratings
* ATD/B CN: Couche-Tard Cut to Market Perform at BMO; Price Target C$84
* CVE CN: Cenovus Energy Upgraded to Outperform at CIBC; PT C$16.50
* FM CN: First Quantum Minerals Upgraded to Buy at Canaccord; PT C$16
* GDI CN: GDI Integrated Rated New Buy at Cormark Securities; PT C$35
* IMO CN: Imperial Oil Rated New Buy at Accountability; PT C$43
* TCW CN: Trican Well Service Downgraded to Neutral at CIBC; PT C$1.50
* VET CN: Vermilion Energy Downgraded to Sector Perform at RBC; PT C$33
* WCN CN: Waste Connections Downgraded to Perform at Oppenheimer
Commodities
* Western Canada Select crude oil traded at a $14.75 discount to WTI
* Gold spot price rose 1.4% to $1,446.23 an ounce
FX/Bonds
* The Canadian dollar climbed about 0.1% to C$1.3036 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.501%
US
By Rita Nazareth
(Bloomberg) — U.S. stocks rebounded and the dollar fell after Federal Reserve Bank of New York President John Williams highlighted the need for swift action should policy makers conclude the economy is in trouble. Consumer and financial stocks led gains in the S&P 500 Index, while Treasury 10-year yields dropped. A positive outlook from Apple Inc. supplier’s Taiwan Semiconductor Manufacturing Co.’s lifted chipmakers. The NYSE FANG+ Index slid on Netflix Inc.’s surprise loss of U.S. customers.
A report that Iran made a “substantial” offer on its nuclear program in return for fewer sanctions gave a lift to equities that was later tempered by news that the U.S. shot down an Iranian drone. In after-hours trading, Microsoft Corp. and CrowdStrike Holdings Inc. rallied after sales topped estimates.The futures market edged closer to the idea of a half-point U.S. rate cut this month, with fed funds now pricing in about 42 basis points of easing. Fed Vice Chairman Richard Clarida told Fox Business Network that policy makers shouldn’t wait for the economy to turn down to act. Cutting rates could help cushion some of the blow from uncertainty about trade that’s likely to prove persistent, according to Fed Bank of St. Louis President James Bullard.
“We’re in a trade war, you’re seeing the impact on corporate earnings, you’re seeing the central banks forced to scramble to react to that,” Bob Michele, CIO and head of global
fixed income at JPMorgan Asset Management, said in a Bloomberg TV interview.
Elsewhere, oil slid to the lowest in almost a month as pessimism about a trade truce between the U.S. and China continued to dog markets, while the resumption of Russian pipeline flows fed worries about a supply glut. The pound climbed as the British Parliament backed measures to prevent the next prime minister suspending the legislature to pursue a no-deal Brexit.

These are the main moves in markets:
Stocks
* The S&P 500 rose 0.4% to 2,995.11 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index decreased 0.2%.
* The MSCI Asia Pacific Index fell 0.6%.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.5%.
* The euro gained 0.5% to $1.1276.
* The British pound climbed 1% to $1.2554.
* The Japanese yen added 0.6% to 107.26 per dollar.
Bonds
* The yield on 10-year Treasuries dipped two basis points to 2.03%.
* Germany’s 10-year yield declined two basis points to -0.31%.
* Britain’s 10-year yield was unchanged at 0.759%.
Commodities
* The Bloomberg Commodity Index dipped 0.8%.
* West Texas Intermediate crude declined 2.6% to $55.30 a barrel.

–With assistance from Nancy Moran, Sophie Caronello, Todd White, Yakob Peterseil, Cecile Gutscher, Tom Keene, Nejra Cehic, Adam Haigh and Vildana Hajric.

Have a great night.

Be magnificent!

As ever,

Carolann

You cannot find peace by avoiding life.
              –Virginia Woolf, 1882-1941

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