January 15, 2020 Newsletter

Dear Friends,

Tangents:

Birthday: Martin Luther King, Jr., January 15, 1929

Nonviolence means avoiding not only external physical violence but also internal violence of spirit.  You not only refuse to shoot a man, but you refuse to hate him. MLK.

1943: Pentagon  completed.
On Jan. 15, 1967, the first Super Bowl was played as the Green Bay Packers of the National Football League defeated the Kansas City Chiefs of the American Football League, 35-10.  Go to article »

From CNN:
Some trees can live for more than 1,000 years, and scientist think they’ve figured out why
They drink water. They don’t stress. They mind their own business. Be like a tree, folks, and live forever. 

PHOTOS OF THE DAY

Hindu devotees gather to take a holy dip in the Bay of Bengal during the Gangasagar Mela, at Sagar Island, some 150 kilometres south of Kolkata.
CREDIT: XAVIER GALIANA/AFP/GETTY IMAGES

Large waves hit the sea wall with Storm Brendan bringing high winds and heavy rain, as train passes through Dawlish, southwest Britain.
CREDIT: TOBY MELVILLE/REUTERS

A Guianan squirrel monkey baby at Marwell Zoo, Winchester. Each year, Marwell Zoo counts every single creature in the wildlife park as part of its zoo licence.
CREDIT: MARWELL ZOO/PA

Market Closes for January 15^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2008, Citigroup cut its dividend, eliminated 4,200 jobs and secured $14.5 billion in fresh capital from a group of investors as it announced a fourth-quarter loss of $9.83 billion. The Dow Jones Industrial Average fell 277 points, or 2.2%, to 12501.11.
Canada
By Kristine Owram and Bloomberg Automation
(Bloomberg) — Canada’s equity benchmark hit a third consecutive record high after the U.S. and China signed the first phase of a trade deal and pot stocks surged on strong earnings.
The S&P/TSX Composite Index added 0.4% to 17,415.17. Cannabis stocks were the biggest gainers after Organigram Holdings Inc. reported revenue that beat the highest analyst estimate. Hexo Corp. gained 16% and Aurora Cannabis Inc. added 15%. Materials were also strong as gold prices advanced, with fund managers saying they see another leg up for the precious metal amid low interest rates, a weaker dollar and the coming U.S. presidential election. Novagold Resources Inc. added 4.7% and Yamana Gold Inc. gained about 4%. Today, 136 of 234 shares rose, while 92 fell; 9 of 11 sectors were higher.
Commodities
* Western Canada Select crude oil traded at a $24.50 discount to WTI, the biggest gap since November 2018, amid a cold snap
* Spot gold rose 0.7% to $1,555.60 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.1% to C$1.3049 per U.S. dollar
* The 10-year government bond yield fell 6 basis points to 1.53%

================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 19.7846| 1.0| 29/18
Financials | 13.9768| 0.3| 14/12
Real Estate | 9.4283| 1.6| 25/0
Information Technology | 9.0127| 0.9| 9/1
Health Care | 8.6606| 3.9| 10/0
Utilities | 6.5409| 0.8| 12/3
Consumer Staples | 4.2095| 0.6| 10/1
Industrials | 2.4144| 0.1| 13/18
Communication Services | 0.9124| 0.1| 4/3
Consumer Discretionary | -0.7346| -0.1| 6/10
Energy | -11.9344| -0.4| 4/26

US
By Vildana Hajric and Sarah Ponczek
(Bloomberg) — U.S. stocks closed at record highs as investors assessed the details of the partial trade deal with China. Treasuries gained and the dollar weakened. The benchmark S&P 500 finished short of an earlier all-time intraday high after President Donald Trump presided over a signing ceremony with Chinese officials. The deal commits China to do more to crack down on the theft of American technology and corporate secrets by its companies and state entities, while outlining a $200 billion spending spree to try to close its trade imbalance with the U.S. Soybeans slumped after China signaled purchases would be demand-based.
“While it does not appear that the ‘phase one’ deal addresses many of the structural issues that started the trade spat, it does mitigate the uncertainty that ongoing trade tensions present, namely the threat of new tariffs at a moment’s notice,” said Jason Pride, chief investment officer of private wealth at Glenmede Trust Co. in Philadelphia.The S&P 500 set an intraday record for the sixth consecutive trading session, largely ignoring disappointing quarterly results from Goldman Sachs Group Inc. and Bank of America Corp. The Nasdaq Composite and Dow Jones Industrial Average indexes also set fresh highs. U.S. markets received an added boost earlier after White House economic adviser Larry Kudlow promoted more tax cuts. Commodity markets got some numbers on China’s commitments to buy agricultural products, but doubts remain. Currency traders assessed the section that reaffirmed existing G-20 commitments, and investors in tech stocks pored over details on intellectual property concessions.
     “It’s anti-climactic,” said Jim Paulsen, chief investment strategist at the Leuthold Group. “It was in there and people knew this for a while now, it’s about what you thought.” Meanwhile, the Stoxx Europe 600 Index finished little changed, while equities across most of Asia fell. Russia’s currency weakened as much as 0.6% against the dollar. President Vladimir Putin replaced his long-serving prime minister and called for sweeping constitutional changes, fueling speculation that the Russian leader is moving to extend his grip on power beyond the end of his term in 2024. Oil futures drifted, with West Texas Intermediate trading around $58 a barrel. Gold nudged higher.

Here are some events to watch for this week:
* It’s earnings season for the biggest American financial institutions, with Morgan Stanley and Bank of New York Mellon Corp. still to come.
* The Federal Reserve’s Beige Book report on regional economic conditions is due on Wednesday.
* China GDP, along with key monthly data for December, come on Friday.
* A final reading on the euro-zone’s December inflation is also due on Friday.

There are some of the main moves in markets:
Stocks
*The Dow Jones Industrial Average increased 0.3% to 29,030.28, the highest on record.
*The Nasdaq Composite Index climbed 0.1% to 9,258.70.
*The MSCI All-Country World Index advanced 0.1% to 573.80, the highest on record.
*The Stoxx Europe 600 Index was little changed at 419.63.
Currencies
*The Bloomberg Dollar Spot Index decreased 0.1% to 1,191.76, the lowest in a week.
*The Japanese yen strengthened 0.1% to 109.90 per dollar, the largest rise in more than a week.
*The euro gained 0.2% to $1.1151, the strongest in a week on the biggest gain in more than a week.
*The British pound gained 0.1% to $1.3028.
Bonds
*The yield on two-year Treasuries fell one basis point to 1.56%, the lowest in a week.
*The yield on 10-year Treasuries fell three basis points to 1.78%, the lowest in almost six weeks.
*Germany’s 10-year yield declined three basis points to -0.20%, the biggest drop in more than a week.
*Britain’s 10-year yield decreased seven basis points to 0.654%, the lowest in seven weeks on the largest dip in six weeks.
Commodities
*West Texas Intermediate crude declined 0.4% to $57.96 a barrel, the lowest in six weeks.
*Gold strengthened 0.6% to $1,556.05 an ounce.

–With assistance from Claire Ballentine

Have a great night.

Be magnificent!
As ever,

Carolann

It is only with the heart that one can see rightly; what is essential is invisible to the eye.
                                                                   -Antoine de Saint-Exupéry, 1900-44

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