January 06, 2020 Newsletter

Dear Friends,

Tangents: 
For Christians today is The Epiphany.
1838 – Samuel Morse first publicly demonstrated his telegraph, in Morristown, N.J.  Go to article »

PHOTOS OF THE DAY

A plane flies in to land in the tobacco coloured skies over Manukau city in Auckland, New Zealand. The smoke has travelled from Australia, where hundreds of fires continue to burn across New South Wales, Victoria and South Australia, with the Australian Defence Force now called in to help with the firefighting and rescue efforts.
CREDIT: PHIL WALTER/GETTY IMAGES

Participants wait for the start of the “Cabalgata de Reyes” Epiphany parade in Barcelona, Spain. The traditional parade marks the eve of the Epiphany, a Christian holiday celebrating the story of the Three Kings believed to have followed a bright star to offer gifts of gold, frankincense and myrrh to the new born Jesus in Bethlehem.
CREDIT: AP PHOTO/FELIPE DANA

A Hot air balloon shaped like a bird takes off from Mondovi, Italy during the 32nd Epiphany International Air Balloon Rally.
CREDIT: MARCO ALPOZZI/ LAPRESSE VIA AP

Market Closes for January 06^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1981, market guru Joe Granville issued a client advisory: “Sell everything!” Mr. Granville, who said he deserved the Nobel Prize in Economics for solving the mystery of the stock market, had 11,000 subscribers who paid $250 a year for his newsletter and its market-timing advice. The next day, the Dow plummeted 4.2% on a then-record volume of 92.9 million shares, recovering slightly to close down 23.8 points, or 2.4%. A year later, the market was down about 14%—and Mr. Granville was famous for “calling the market.” Unfortunately, his subsequent advice cost his followers 98% of their money through the end of 1987.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equities rose Monday as investors looked past the geopolitical concerns and snapped up some of the shares that fell the most last week amid the U.S.-Iran conflict. The S&P/TSX Composite Index rose 0.2% to 17,105.47. The move is the biggest since rising 0.3% on Dec. 24. Technology stocks, which were among the hardest hit on Friday, led the advance, climbing 1.4%. Hudson’s Bay had the largest gain in the broader index, rising 9.7%. Restaurant Brands was the biggest drag on the gauge, declining 2.3%. Hudson’s Bay Co. minority shareholders including Catalyst Capital Group Inc. won a hard-fought battle to secure a higher price for the owner of Saks Fifth Avenue after Chairman Richard Baker and allies sweetened their offer a second time. Meanwhile, First Quantum Minerals Ltd. is battening down the hatches in its latest move to defend itself against
potential takeovers. The Vancouver-based miner said Monday it has adopted a shareholder rights plan that would allow current investors to buy additional shares at a “substantial” discount should any party acquire 20% or more of the company’s stock.
Commodities
* Western Canada Select crude oil traded at a $22.40 discount to WTI
* Spot gold rose 0.9% to $1,566.23 an ounce
FX/Bonds
* The Canadian dollar rose 0.3% to C$1.2964 per U.S. dollar
* The 10-year government bond yield rose about 3 basis points to 1.581%
US
By Randall Jensen and Vildana Hajric
(Bloomberg) — U.S. stocks advanced as heavyweight technology companies led a rebound. Treasuries and the dollar dropped. The S&P 500 rose for the third time in four sessions, erasing early losses, as investors looked past geopolitical tensions and toward the resilience of the U.S. economy. Amazon Inc. and Google-parent Alphabet Inc. paced the advance. The risk-off rally that started Friday, sparked by the U.S.-Iran conflict, lost momentum Monday. Gold retreated from the highest in more than six years and the yen fell from a three-month high versus the dollar, while 10-year Treasury yields rose to above 1.80%. Oil also pared gains, which reached the highest since April, to trade below $63 a barrel in New York. “It’s wait-and-see mode here,” said Steve Chiavarone, a portfolio manager with Federated Investors. “How much, if at all, do things escalate with Iran and does it ultimately impact the global economic outlook? Right now, not so much. Could it change? Sure.” The risk-off sentiment spurred by the sudden escalation of tensions in the Middle East last week ebbed Monday as investors refocused on improving trade and better economic numbers. But the uncertainty surrounding Iran’s potential reaction to the U.S. airstrike still hung over markets.

Here are some events to watch for this week:
* Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday.
* The U.S. monthly employment report is due Friday.

These are moves in major markets:
Stocks
* The S&P 500 Index rose 0.4% as of 4 p.m. New York time.
* The Nasdaq 100 rose 0.6%.
* The Stoxx Europe 600 Index sank 0.4%.
* The MSCI Asia Pacific Index fell 1.2%.
* The MSCI Emerging Market Index dropped 1%.
Currencies
* The Bloomberg Dollar Spot Index declined 0.2%.
* The euro increased 0.3% to $1.1192.
* The British pound gained 0.6% to $1.3163.
* The Japanese yen fell 0.3% to 108.37 per dollar.
Bonds
* The yield on 10-year Treasuries rose one basis point to 1.80%.
* The yield on two-year Treasuries increased one basis point to 1.53%.
* Germany’s 10-year yield sank less than one basis point to -0.28%.
* Britain’s 10-year yield advanced four basis points to 0.777%.
Commodities
* West Texas Intermediate crude fell 0.5% to $62.71 a barrel.
* Gold gained 1% to $1,567.60 an ounce.
–With assistance from Yakob Peterseil and Sarah Ponczek.
Have a great night.

Be magnificent!
As ever,

Carolann

To live for results would be to sentence myself to continuous frustration.
My only sure reward is in my actions and not from them.
                                                                               -Hugh Prather, 1938-2010

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