April 17, 2019 Newsletter

Dear Friends,

Tangents:
On April 17, 1961, about 1,500 CIA-trained Cuban exiles launched the disastrous Bay of Pigs invasion of Cuba in a failed attempt to overthrow the government of Fidel Castro.
April 17, 1991:  first time the Dow Jones tops 3000.  The Dow closed today at 26,449.54.
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1837 – J.P. Morgan, banker, born.
1885 – Isak Dinesen, writer, born.

ICYMI:
From The New York Times:

We have profound news from our science desk.

Researchers at Yale University removed the brains from 32 dead pigs and, hours later, restored cellular activity to them. A bioethicist called the brains “partly alive.”

The study overturns long-held assumptions about brain death, and raises questions about the line between life and mortality. (We did say it was profound.)

PHOTOS OF THE DAY

An 8 metre whale sharks swims under a tourist boat in the Ningaloo Reef, off the coast of Western Australia. CREDIT: OCEAN COLLECTIVE MEDIA/SWNS.COM

A blooming cherry tree stands in a field as the sun sets in Somosko near Salgotarjan, Hungary. CREDIT: PETER KOMKA/EPA-EFE/REX

Fallen debris from the burnt out roof structure sits near the high altar inside Notre Dame Cathedral in Paris, France. CREDIT: CHRISTOPHE MORIN/BLOOMBERG
Market Closes for April 17^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1930, the stock market hit a high following the stock-market crash of 1929. The Dow closed at 294.07, up 48% in the five months since stocks bottomed on Nov. 13, 1929. Over the next two years, however, the blue-chip index lost another 86% of its value, hitting rock bottom at 41.22 on July 8, 1932.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.3 percent at 16,544.24 in Toronto. The index advanced to the highest closing level since July 13 after the previous session’s decrease of 0.1 percent.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 3.2 percent. Hexo Corp. had the largest increase, rising 12.0 percent.
    Today, 120 of 243 shares rose, while 121 fell; 6 of 11 sectors were higher, led by financials stocks.

* The index advanced 7.8 percent in the past 52 weeks. The MSCI AC Americas Index gained 6.4 percent in the same period
* The S&P/TSX Composite is 0.3 percent below its 52-week high on July 13, 2018 and 20.1 percent above its low on Dec. 24, 2018
* The S&P/TSX Composite is up 0.9 percent in the past 5 days and rose 2.5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.6 on a trailing basis and 15.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.55 trillion
* 30-day price volatility fell to 6.48 percent compared with 6.53 percent in the previous session and the average of 6.57 percent over the past month.
* The benchmark 10-year bond fell and the yield rose 1.6 basis points to 1.799 percent
US
By Jeremy Herron and Sarah Ponczek
(Bloomberg) — U.S. stocks fell to a one-week low as the drop in health-care providers extended amid concern about policy changes and the latest batch of corporate earnings did little to boost confidence in the economy. Treasuries edged higher.
The S&P 500 Index closed at 2,900 as health providers from UnitedHealth to Anthem and Humana tumbled. Merck fell the most in the Dow Jones Industrial Average, which slipped 26 points.
The Nasdaq 100 Index surpassed its August record after Qualcomm Inc.’s two-day surge topped 40 percent, though gains were tempered by a slump among biotech shares.
The rout in health-care shares overshadowed the latest batch of earnings reports, which painted a mixed picture on the state of the economy. Morgan Stanley rose, but a rout in Bank NY Mellon weighed on financial shares lower. PepsiCo. Inc. jumped to an all-time high after posting solid results, while CSX Corp. and Kansas City Southern lifted transportation stocks. IBM Corp. slumped as sales fell.
Health providers and hospital operators have come under pressure as national politicians debate the merits of expanding Medicare to all Americans, a move that has the power to upend earnings models for large parts of the system.
“While there is still no convincing evidence legislative changes will have any negative impact on this year‘s earnings, it doesn’t help to have a major headwind emerge for an industry that was expected to be a driver of a second-half profit rebound,” said Alec Young, managing director of global markets research for FTSE Russell.
The yield on 10-year Treasuries was virtually unchanged after climbing to a four-week high and the dollar fell amid data showing the U.S. trade gap unexpectedly narrowed. European debt also dropped, while the euro strengthened even as Germany’s economy ministry revised its growth forecast lower. Data overnight showing China’s economic growth, industrial production and retail sales all topped estimates boosted equities around the world. The Stoxx Europe 600 Index erased a drop, while shares rose in Japan and Shanghai.
As earnings continue to pour in, investors are growing more confident the anticipated drop in first-quarter results won’t spoil the year. At the same time, central banks around the world remain accommodative, and the latest Chinese data appears to have calmed jitters that the world’s second-largest economy was headed for a slowdown.
Here are some notable events coming up:
* Earnings season rolls on this week, with reports due from American Express, Honeywell, Alcoa and Taiwan Semiconductor among others.
* A swathe of financial markets will close across the Western world for the Good Friday holiday, including in the U.S., U.K. and Germany.

These are the main moves in markets:
Stocks
* The S&P 500 fell 0.2 percent to 2,900.49 at 4 p.m. in New York.
* The Dow Jones Industrial Average fell less than 0.1 percent, while the Nasdaq 100 added 0.3 percent.
* The Stoxx Europe 600 Index advanced 0.1 percent.
* The MSCI All-Country World Index increased 0.2 percent.
* The MSCI Emerging Market Index jumped 0.3 percent to the highest in 10 months.
Currencies
* The Bloomberg Dollar Spot Index dipped less than 0.1 percent.
* The euro gained less than 0.1 percent to $1.13.
* The British pound fell less than 0.05 percent to $1.3044.
* The Japanese yen was little changed at 112.045 per dollar.
Bonds
* The yield on 10-year Treasuries was little changed at 2.59 percent after hitting the highest in more than four weeks.
* Germany’s 10-year yield added one basis point to 0.08 percent.
* Japan’s 10-year yield rose two basis points to -0.013 percent.
Commodities
* West Texas Intermediate crude fell 0.1 percent to $63.96 a barrel.
* Gold futures fell 0.1 percent to $1,276.60 an ounce.
* The Bloomberg Commodity Index retreated 0.3 percent.
–With assistance from Ron Harui, Adam Haigh, Todd White and Robert Brand.

Have a great night.

Be magnificent!

As ever,

Carolann

Go placidly amid the noise and the haste, and remember what peace there may be in silence.
-Max Ehrmann, 1872-1945

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
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www.carolannsteinhoff.com