April 17, 2018 Newsletter

Dear Friends,

Tangents:
On this day in 1964, the Ford Mustang–a two-seat sports car named after a World War II fighter plane–was unveiled by Henry Ford II at the World’s Fair in Flushing Meadows, New York.
April 17, 1932, Haile Selassie ends slavery in Ethiopia
Also on this day, in 1961, 1500 CIA-trained Cuban exiles launched the disastrous Bay of Pigs invasion of Cuba in a failed attempt to overthrow the government of Fidel Castro. 
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PHOTOS OF THE DAY

Chionodoxa and daffodils bloom on the lawns around Alnwick Castle, Northumberland. 
Credit: Paul Kingston

The sun rises at Weymouth harbour in Dorset. Credit: Graham Hunt/Alamy Live News

A visitor looks at the self-portrait of Flemish painter Rubens during the press presentation at the Ruben House in Antwerp after the painting was restored in London. Credit: Kristof Van Accom/AFP/Getty Images
Market Closes for April 17^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
April 17, 1991: Dow Jones Tops 3,000 for the first time.
Number of the Day
7.41 million
Netflix Inc. added 7.41 million subscribers in the latest quarter, beating its own guidance and Wall Street’s expectations for the second quarter in a row.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest level in nearly two weeks but were unable to keep pace with the gains in their U.S. counterparts.
     The S&P/TSX Composite Index added 53 points or 0.4 percent to 15,353.30, the highest close since April 5. Technology stocks gained 2.8 percent, the most in more than two months, as strong results from Netflix Inc. boosted the sector in both Canada and the U.S.
     The energy index rose 0.9 percent amid hints that OPEC may further extend its output cuts, while materials added 0.8 percent as lumber prices rose to a record high. Canfor Corp. gained 5.8 percent and Norbord Inc. added 4.3 percent.
     In other moves:
                          Stocks
* Cannabis stocks fell after one analyst pointed out that Canada’s planned production of marijuana is more than three times greater than estimates for consumption. Aphria Inc. lost 7.4 percent and Aurora Cannabis Inc. slid 5.5 percent
* Alaris Royalty Corp. rose 9.7 percent, the most since 2009. The company’s net capital deployment could gain momentum later this year given increases in interest rates, Desjardins Securities said
* Brookfield Property Partners added 2.1 percent. It has lined up a slate of heavyweight backers to help finance its planned takeover of GGP Inc., according to people familiar with the matter
                          Commodities
* Western Canada Select crude oil traded at a $16.60 discount to WTI, the widest gap in a week and a half
* Gold was little changed at $1,347.20 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.2550 per U.S. dollar
* The Canada 10-year government bond yield fell three basis points to 2.24 percent
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — U.S. stocks rallied for a second day amid better-than-expected earnings from industry heavyweights, adding to evidence that the strengthening economy is lifting corporate profits.
     The S&P 500 Index rose to the highest in four weeks as the benchmark pushed through its average price for the past 100 days, a level it hasn’t crossed in a month. Netflix Inc. surged after subscriber growth topped estimates, helping to drive gains in technology shares, and UnitedHealth Group Inc. climbed after reporting strong results.
     The spate of earnings overshadowed renewed machinations on the trade front, where China retaliated for the U.S.’s hit on ZTE Corp. with agricultural duties. The world’s second-largest economy also said it will ease access to its market, boosting automakers from Volkswagen AG to Tesla Inc.
     “Markets have tended to rally during earnings season and I think some of that optimism, some of the sentiment is coming through the market right now,” Matt Forester, chief investment officer who helps oversee $7.9 billion at Lockwood Advisors Inc. in King Of Prussia, Pennsylvania, said by phone. “We went into Friday night with missiles flying into Syria and a lot of political news, and here we are Tuesday afternoon and nobody is even thinking about that anymore. It’s off the front page already.”
     The dollar largely shrugged off President Donald Trump’s latest intervention in currencies. The jawboning comes at a time of already elevated geopolitical tension, and ongoing fears of a lurch toward global protectionism. Meanwhile a slew of Federal Reserve officials is due to speak this week. Treasury yields edged lower and West Texas crude traded near $66 a barrel.
     Elsewhere, U.K. wage growth including bonuses missed estimates and a survey showed German investor confidence tumbling, undermining both the pound and euro.
     Here’s what to watch out for this week:
* Morgan Stanley is among companies reporting results this week.
* Trump welcomes Japan Prime Minister Shinzo Abe to Mar-a-Lago on Tuesday. North Korea and trade will probably be discussed.
* Mining investors will get to take the pulse of the global industry this week, with Rio Tinto and BHP Billiton offering quarterly production reports.
     Here are the main moves in markets:
                           Stocks
* The S&P 500 Index increased 1.1 percent to 2,706.38 as of 4 p.m. New York time, the highest in more than three weeks.
* The Nasdaq Composite Index gained 1.7 percent, the biggest rise in a week.
* The Stoxx Europe 600 Index rose 0.8 percent, the highest in seven weeks.
* The MSCI All-Country World Index climbed 0.8 percent to the highest in almost four weeks.
* The MSCI Emerging Market Index rose 0.1 percent.
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.1 percent.
* The euro fell 0.1 percent to $1.2371.
* The British pound declined 0.4 percent to $1.4285, the first retreat in more than a week.
* The Japanese yen rose 0.1 percent to 107.01 per dollar.
                            Bonds
* The yield on 10-year Treasuries fell one basis point to 2.812 percent.
* Germany’s 10-year yield decreased two basis points to 0.51 percent.
* Britain’s 10-year yield dipped three basis points to 1.436 percent.
                            Commodities
* West Texas Intermediate crude rose 0.4 percent to $66.46 a barrel.
* Copper declined 0.4 percent to $3.08 a pound.
* Gold was little changed at $1,347.38 an ounce.
–With assistance from Yakob Peterseil and Richard Richtmyer. 

Have a great evening.

Be magnificent!

As ever,

Carolann

Nothing has a stronger influence on their children than the unlived lives of their parents.
-Carl Gustav Jung, 1875-1961

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