April 2, 2015 Newsletter

Dear Friends,

Tangents:

On this day 10 years ago, history’s most well-traveled pope, John Paul II, died at his home in the Vatican. Born in Poland, Pope John Paul II was the first non-Italian to hold the position since the 16^th century.

Happy Easter!

Happy Passover!

PHOTOS OF THE DAY

A sparrow drinks the nectar of a cherry blossom in full bloom at Ueno park in Tokyo Thursday. Shizuo Kambayashi/AP

Penitents of the ‘Virgen de la Esperanza’ brotherhood take part in a Holy Week procession in Zamora, Spain, Thursday. Hundreds of processions take place throughout Spain during the Easter Holy Week. Andres Kudacki/AP

Market Closes for April 2^nd, 2015     

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day, as energy producers rallied with consumer shares to cap the benchmark gauge’s best weekly advance in two months.

     Canadian Oil Sands Ltd. climbed 5.8 percent to pace gains among oil producers. Cogeco Cable Inc. added 1.9 percent after analysts at Macquarie Bank Ltd. increased their rating for the stock to the equivalent of a buy. Royal Bank of Canada, the nation’s largest lender, added 0.7 percent.

     The Standard & Poor’s/TSX Composite Index rose 84.07 points, or 0.6 percent, to 15,026.62 at 4 p.m. in Toronto. The benchmark equity added 1.5 percent in the four days, the best week since Feb. 6. Canadian markets will be closed for Friday for a holiday.

     Painted Pony Petroleum Ltd. gained 3.2 percent and Suncor Energy Inc. rallied 3.8 percent as energy producers jumped 1.5 percent as a group, the most in the S&P/TSX. Eight of 10 industries in the broader gauge advanced on trading volume 19 percent lower than the 30-day average.

     Suncor expects C$600 million to C$800 million in operating budget cuts to be “substantially” realized in 2015, ahead of previous two-year projections. Suncor and other energy producers have been forced to slash costs in reaction to the more than 50 percent slump in the U.S. benchmark crude price from last year’s peak.

     Consumer products producers and retailers rallied at least1.2 percent, for the next biggest gains in the S&P/TSX.

US

By Joseph Ciolli and Jennifer Kaplan

     (Bloomberg) — U.S. stocks rose, after equities’ two-day decline, as a trend of mixed economic data continued before Friday’s government report on hiring.

     CarMax Inc. rallied to an all-time high after a stronger- than-estimated fourth-quarter profit. Lorillard Inc. and Reynolds American Inc. climbed as antitrust officials weigh the cigarette companies’ merger. Qualcomm Inc. and Google Inc. slipped more than 1.3 percent.

     The Standard & Poor’s 500 Index added 0.4 percent to 2,066.96 at 4 p.m. in New York, and finished the week higher by

0.3 percent. The Dow Jones Industrial Average climbed 65.06 points, or 0.4 percent, to 17,763.24, and the Nasdaq Composite Index rose 0.1 percent. About 5.9 billion shares changed hands on U.S. exchanges today, 15 percent below the three-month average.

     “We probably got a bit too sold off as people read into the recent more negative data, and traders are getting back in,” said Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates in Bethlehem, Pennsylvania. “Investors are thinking maybe they shouldn’t leave such a short position out there over the weekend in case the jobs data ends up being better than expected.”

     Stocks extended gains after Iran and world powers said they reached an outline accord that keeps them on track to end a decade-long nuclear dispute.

     The S&P 500 fluctuated in the holiday-shortened week around a 15-point range framed by the index’s 50-day and 100-day moving averages. Data Thursday showed jobless claims fell more than forecast while factory output topped estimates, continuing a trend of mixed economic reports as the Federal Reserve considers raising interest rates.

     Focus is on tomorrow’s monthly payrolls data, in which economists predict nonfarm payrolls rose 245,000 in March, down from February’s 295,000 with no change to the 5.5 percent unemployment rate, the lowest since 2008. Wage growth is also forecast to be little changed.

     While markets will be closed, traders will still have 45 minutes to react: The Labor Department will release the report at 8:30 a.m. New York time and index futures will trade until 9:15 a.m.

     After the S&P 500’s weakest quarterly performance since the last three months of 2012, investors are now taking steps to protect gains from a six-year bull market as a run of disappointing data and projections for falling profits have reinforced concern that economic growth may be slowing. Bearish options on the S&P 500 outnumber bullish ones by the most since 2008, data compiled by Bloomberg show.

     Alcoa Inc. unofficially kicks off the earnings season when it releases results on April 8. Analysts estimate first-quarter profits for S&P 500 companies will decline for the first time since 2009. They had predicted earnings growth for the period as recently as January.

     Nine of the S&P 500’s 10 main groups gained Thursday, led by consumer and phone companies. The Chicago Board Options Exchange Volatility Index declined 2.9 percent to 14.67. The gauge, know as the VIX, fell 20 percent in the first quarter, the most in a year.

     CarMax jumped 9.3 percent to a record after reporting fourth-quarter adjusted earnings that beat analysts’ estimates. Expedia Inc. rose 4.1 percent to a record after Cowen & Co LLC analyst Kevin Kopelman raised his price target to $115 from $90 a share.

     Macy’s Inc. advanced 3.7 percent to an all-time high amid a Reuters report that department-store chain Belk Inc. is exploring a sale and may solicit Macy’s interest in a deal.

     An S&P index of homebuilders reached its highest level since June 2007. DR Horton Inc., Toll Brothers Inc. and Lennar Corp. rose more than 1.9 percent.                           

     Media companies gained 1.4 percent, the most of 24 industry groups in the S&P 500. Time Warner Inc. climbed 2.7 percent, rebounding from its worst two-day slide in 10 weeks. Discovery Communications Inc. and CBS Corp. added more than 2.5 percent.

     Energy shares pared gains as oil prices fell after negotiators reached an accord in nuclear talks with Iran. Valero Energy Corp., Tesoro Corp. and Marathon Petroleum Corp. slid more than 4.6 percent. Oil lost 1.9 percent after Wednesday posting its biggest gain in two months.

     Technology companies lagged as Qualcomm retreated 2.1 percent following its best three-day gain in seven weeks, and Microsoft slipped 1.1 percent. Google Inc. fell 1.3 percent, extending declines to a third day and six out of seven. Shares have slumped 6.1 percent during that period.

     Motorola Solutions Inc. tumbled 6.2 percent after people with knowledge of the matter said the company has failed to find a buyer.

     United Continental Holdings Inc., American Airlines Group Inc. and Delta Air Lines Inc. lost more than 2.3 percent, pacing declines among a Bloomberg index of U.S. carriers. The group is down 6.9 percent since Monday. The Dow Jones Transportation Average decreased 0.8 percent Thursday to close at its lowest level since October.

Have a fabulous long weekend everyone!

Be magnificent!

How is this dream to be broken

How shall we wake up from this dream

that we are little men and women,

and all such things? 

Swami Vivekananda

As ever,

Carolann
 

Nothing in life is to be feared.  It is only to be understood.

                            -Marie Sklodowska-Curie, 1867-1934

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7