Author: Carolann

Dear Friends,

Tangents:

Good to be back in the land of  plunging oil and a plunging dollar after a little reprieve from news and noise over the holidays.  We just spent a few weeks in the Maldives where upon arrival, we were asked for our  shoes which quickly disappeared – at least the islands we chose to spend our time.  The mantra of our hosts  is “No Shoes.  No News.”   Being a news junkie, I must say I initially suffered some withdrawal, but quickly recovered when I discovered how pleasant it can be – to shut the world out temporarily. 

If you don’t break your ropes while you’re alive
do you think
ghosts will do it after?
-Kabir

PHOTOS OF THE DAY

A backcountry skier climbs up towards the Mederger Flue peak on Monday, in Davos, Switzerland. Gian Ehrenzeller/AP


Waterbirds swim in a canal bearing the reflection of trees in Beijing on Tuesday. Kim Kyung-Hoon/Reuters

Market Closes for January 13^th, 2015   

Market Index	Close	Change
Dow Jones	17613.68	-27.16
		-0.15%
S&P 500	2023.03	-5.23   -0.26%
NASDAQ	4661.496	-3.210
		-0.07%
TSX	14187.16	-77.85
		-0.55%

International Markets

Market Index	Close	Change
NIKKEI	17087.71	-110.02
		-0.64%
HANG SENG	24215.97	+189.51
		+0.79%
SENSEX	27425.73	-159.54
		-0.58%
FTSE 100	6542.20	+40.78
		+0.63%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.600	1.606
CND. 30 Year Bond	2.165	2.172
U.S.    10 Year Bond	1.9000	1.9070
U.S. 30 Year Bond	2.4992	2.4965

Currencies

BOC Close	Today	Previous
Canadian $	0.83666	0.83562
US $	1.19522	1.19724
Euro Rate 1 Euro=		Inverse
Canadian $	1.40784	0.71031
US $	1.17789	0.84898

Commodities

Gold	Close	Previous
London Gold Fix	1231.50	1226.50
Oil	Close	Previous
WTI Crude Future	45.89	46.07

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — The Canadian equity market is engulfed in volatility at levels not seen since the euro area debt crisis of 2012 as a continued plunge in commodities sent stocks to a one- month low.

     Capstone Mining Corp. and First Quantum Minerals Ltd. sank at least 15 percent as base-metals producers plunged with the price of copper. Legacy Oil & Gas Inc. lost 10 percent as energy shares retreated. Onex Corp. climbed 6 percent after agreeing yesterday to buy Survitec Group Ltd. for $680 million.

     The Standard & Poor’s/TSX Composite Index fell 77.85 points, or 0.6 percent, to 14,187.16 at 4 p.m. in Toronto, erasing an earlier gain of as much as 0.7 percent. The benchmark equity gauge has dropped 3 percent this year.

     A volatility index of S&P/TSX 60 options jumped as much as 9.5 percent to 24.88, the highest level since June 2012, before closing at 23.51. Energy stocks make up about 21 percent of the S&P/TSX 60 Index, a gauge of the 60 largest, most liquid shares in Canada.

     “The VIXC is spiking, it’s all about oil, worries about deflation and slowing growth globally,” said John Stephenson, chief executive officer of Stephenson & Co. Capital Management in Toronto. His firm manages about C$50 million ($41.8 million). “Canada’s much more of a one-trick pony because of the energy weighting. The TSX will quite handily underperform the S&P 500 this year.”

     Capstone plunged 17 percent, the biggest decline since 2008, and First Quantum sank 15 percent as raw-materials shares retreated 4.7 percent as a group, the most since October. Trading volume was 11 percent higher than the 30-day average.

     Copper for delivery in three months fell 2.6 percent to $5,860 a metric ton in London, for a fifth day of losses and the lowest in more than five years.

     The S&P/TSX Energy Index fell 0.5 percent to the lowest since Dec. 15. Energy shares are the worst-performing industry in the S&P/TSX this year with a 9.9 percent decline. The group accounts for 20 percent of the broader index’s weighting.

     Investors who first started buying equities after the winter holidays are pulling back out just as quickly as they came in, said Frank Maeba, managing partner at Breton Hill Capital in Toronto. His firm manages about C$700 million.

     “When you don’t get that pop early on, the shorter term holders of risk are more willing to ditch that risk,” Maeba said. “The market is pretty choppy, choppier than it’s been in three to six months. Energy is driving a lot of that right now. When you start trying to trade equities by using oil as a proxy for risk, you’re going to get a lot of big swings.”

     West Texas Intermediate crude rose 0.1 percent in electronic trading as of 5:23 p.m. in New York. Futures fell 0.4 percent in regular trading to settle at $45.89 a barrel, the lowest since April 2009. The commodity slipped below $45 a barrel earlier, slumping as much as 4.1 percent.

     Crude inventories in the U.S. probably gained by 1.5 million barrels last week, a Bloomberg News survey showed ahead of government data tomorrow, raising speculation a global supply glut that’s forced prices into a bear market will continue

USA

By Jeremy Herron

     (Bloomberg) — Volatility surged in the U.S. equity market, with the Dow Jones Industrial Average erasing both a 282-point rally and a 143-point decline to close lower for a third day amid a slump in commodity prices. Copper slid with crude oil and the euro, while Treasuries advanced.

     The Chicago Board Options Exchange Volatility Index, which tracks expectations of U.S. stock swings, climbed a third day, adding 4.9 percent by 4:15 p.m. in New York. The Dow ended the session down 0.2 percent, while the Standard & Poor’s 500 Index fell 0.3 percent, after earlier jumping as much as 1.4 percent. Copper sank to its lowest price since 2009 as Brent oil fell 1.8 percent to $46.59 a barrel, briefly trading below U.S. crude for the first time in 1 1/2 years. The euro slumped to a nine-year low on bets policy makers will ramp up stimulus, while yields on 10-year Treasuries fell to match a 20-month low.

     The S&P 500 has moved an average of 0.95 percent per day so far in 2015. That’s more than double the average daily price change of 0.53 percent for 2014, which was the calmest year in U.S. stocks since 2006. Crude dipped below $45 a barrel amid speculation U.S. supplies have increased, exacerbating a global supply glut. Alcoa Inc. kicked off the U.S. reporting season with better-than-estimated profit after oil’s drop spurred analysts to cut earnings forecasts for S&P 500 companies.

     “Until we have concrete earnings data in aggregate, the market will be somewhat trendless, and trendless blended with volatility is not a good environment,” Kevin Divney, chief investment officer at Beaconcrest Capital Management LLC, said by phone. “It goes back to the same drivers we’ve been seeing for about two quarters now, where we have a very robust U.S. economy, a weak foreign economy, and our exposure to that could make the U.S. economy not as appealing.”                         

     The volatility index, known as the VIX, rose to 20.56, its highest close since Jan. 6. A gauge of stock swings in Japan also climbed, with the Nikkei Stock Average Volatility Index up 2.5 percent as the equity index slipped 0.6 percent in its first day of trading this week.

     The S&P 500 moved 49 points from peak to trough today, the biggest intraday swing since Oct. 15, when the benchmark gauge erased nearly all of its 3 percent decline.

     Trading in futures tracking the S&P 500 accelerated as U.S. stocks erased gains between 1 and 1:30 p.m. in New York. About 77,000 contracts in the Chicago Mercantile Exchange’s e-mini future changed hands between 1:10 and 1:20 p.m. and about 74,000 traded between 1:20 and 1:30 p.m., data compiled by Bloomberg show. In both cases volume was about three times greater than the 10-day average for those time intervals.                           

     Energy shares in the S&P 500 sank 0.7 percent today after a 2.8 percent slump yesterday that dragged the broader S&P 500 down 0.8 percent. The benchmark gauge has dropped 3.5 percent since reaching a record in December.

     West Texas Intermediate oil extended losses today, slipping 0.4 percent in a third day of declines to settle at $45.89 a barrel, its lowest close since April 2009. Futures touched as low as $44.20. Brent, the basis for European and African cargoes, briefly sank to $45.19 in London, trading below WTI for the first time since July 2013 amid signs U.S. exports are poised to increase.

     American crude inventories probably increased by 1.75 million barrels last week, according to a Bloomberg survey of energy analysts before government data tomorrow. The United Arab Emirates, a member of the Organization of Petroleum Exporting Countries, will stand by its plan to expand output capacity even with “unstable oil prices,” according to Energy Minister Suhail Al Mazrouei.                      

     Faster global economic growth will be needed to help absorb the oil surplus estimated at 1.8 million barrels a day, Kuwait Oil Minister Ali Al-Omair told reporters in parliament. A demand-led recovery is seen in the second half, the U.A.E.’s Governor to OPEC Ali Al Yabhouni told reporters at a conference in Abu Dhabi.

     “There was an anticipation that we would stabilize in oil prices and we’re really not,” Jeff Sica, president and CEO of advisory firm Circle Squared Alternative Investments, which oversees $1.5 billion, said by phone. “My contention has been that we’re beginning to see some very severe structural damage to the economy as oil prices continue to fall.”

     The Bloomberg Commodity Index retreated 0.6 percent to the lowest level since November 2002. Copper for three-month delivery dropped for the eighth day this year, slipping to $5,860 a metric ton after touching $5,774.75, its lowest intraday price since August 2009. Nickel and zinc fell more than 2 percent, while corn futures tumbled 4 percent. Silver and U.S. natural gas increased.                         

     Housing shares slumped after KB Home, a U.S. house builder, said that its first-quarter margins will contract. The stock plunged as much as 19 percent, the most intraday in more than three years. The S&P homebuilder index retreated 3.2 percent, the biggest drop in a month. D.R. Horton Inc. sank 4.8 percent and Lennar Corp. lost 1.7 percent.

     “There’s a limit to how high the market can go, and now we face the challenge of figuring out what’s going to drive it further,” Kevin Caron, who helps oversee $170 billion at Stifel Nicolaus & Co. in Florham Park, New Jersey, said in a phone interview. “The market is taking a little bit of a breather here as oil creates uncertainty.”

     Alcoa, the biggest U.S. aluminum producer, forecast global demand will grow 7 percent this year, boosting optimism in the U.S. economy. The company’s fourth-quarter profit and revenue topped analysts’ projections yesterday amid orders for the metal from the auto and aerospace industries. Alcoa shares dropped 2.3 percent today after five days of gains.                         

     JPMorgan Chase & Co., Citigroup Inc., and Intel Corp. and 16 other S&P 500 companies are due to report results this week. Earnings at companies in the gauge probably climbed 2 percent in the final quarter of 2014, analysts predict. That’s down from an average October estimate of 8.5 percent.

     The MSCI Emerging Markets Index added 0.5 percent today as Chinese exports grew more than economists estimated and oil’s decline spurred gains in consumer-discretionary shares.

     Government bonds rose around the world as lower commodity prices damped the outlook for consumer prices. Weaker inflation boosts demand for debt by preserving the value of its fixed payments. It’s also fueling speculation central banks will extend stimulus, keeping borrowing costs low to fulfill their mandates.

     The effective yield on the Bank of America Merrill Lynch Global Broad Market Sovereign Plus Index dropped to 1.21 percent yesterday, a record low in data starting in 1996.

     U.S. 10-year yields touched 1.8622 percent, matching the low reached  Oct. 15 that was the least in 20 months. Rates closed down one basis point at 1.90 percent.

     Japan’s five-year yield fell to zero and rates on the nation’s 10-year securities slipped to a record-low. Australia’s 10-year yields declined to 2.603 percent, also an all-time low. U.K. 30-year yields fell to an unprecedented 2.248 percent.

     The euro fell to its lowest level since December 2005, depreciating as much as 0.7 percent to $1.1753 as regional officials stoked speculation that the European Central Bank will begin buying government bonds as early as next week to stave off deflation.

     The yen strengthened as much as 0.7 percent to 117.54 a dollar, the strongest level since Dec. 17. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, gained 0.1 percent.
 

Have a wonderful evening everyone.

 

Be magnificent!

The energy in the world flows from God at the centre, and back to God.

The sages see life as a  wheel, with each individual going round and round through birth and death.

Individuals remain on this wheel so long as they believe themselves to be separate;

but once they realize their unity with God, then they break free.

Svetasvatara Upanishad

As ever,

 

Carolann

 

Climate is what we expect, weather is what we get.

                                  -Mark Twain, 1835-1910

 

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

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

A dog runs during snowfall in winter with the air temperature around minus 7.6 degrees Fahrenheit at a park in Krasnoyarsk, Siberia on Monday. Ilya Naymushin/Reuters

Waves crash over the harbor wall as gale force winds hit Porthcawl in south Wales on Monday. Rebecca Naden/Reuters

Market Closes for January 12^th, 2015   

Market Index	Close	Change
Dow Jones	17640.84	-96.53
		-0.54%
S&P 500	2028.26	-16.55   -0.81%
NASDAQ	4664.707	-39.360
		-0.84%
TSX	14265.01	-119.91
		-0.83%

International Markets

Market Index	Close	Change
NIKKEI	17197.73	+30.63
		+0.18%
HANG SENG	24026.46	+106.51
		+0.45%
SENSEX	27585.27	+126.89
		+0.46%
FTSE 100	6501.42	+0.28
		—

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.606	1.655
CND. 30 Year Bond	2.172	2.221
U.S.    10 Year Bond	1.9070	1.9449
U.S. 30 Year Bond	2.4965	2.5289

Currencies

BOC Close	Today	Previous
Canadian $	0.83562	0.84265
US $	1.19724	1.18673
Euro Rate 1 Euro=		Inverse
Canadian $	1.41619	0.70612
US $	1.18288	0.84539

Commodities

Gold	Close	Previous
London Gold Fix	1226.50	1222.52
Oil	Close	Previous
WTI Crude Future	46.07	48.36

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a second day as commodities plunged to a 12-year low, with crude prices tumbling after Goldman Sachs Group Inc. cut its price forecasts.

     Legacy Oil & Gas Inc., MEG Energy Corp. and Surge Energy Inc. plunged at least 11 percent. Canadian Western Bank and National Bank of Canada dropped at least 3.2 percent to pace declines among financials stocks in the Standard & Poor’s/TSX Composite Index. Amaya Inc. jumped 12 percent as the online gaming operator said it is considering proposals for one of its properties. Ebola drugmaker Tekmira Pharmaceuticals Corp. soared 56 percent after agreeing to a merger with OnCore Biopharma Inc.

     The S&P/TSX fell 119.91 points, or 0.8 percent, to 14,265.01 at 4 p.m. in Toronto. The benchmark equity gauge has dropped 2.5 percent this year.

     Legacy Oil & Gas sank 15 percent, MEG Energy retreated 11 percent and Surge Energy plunged 12 percent to C$2.52, the lowest since 2009, as all 66 members of the S&P/TSX Energy Index fell. The group lost 3.8 percent as five of 10 industries in the benchmark Canadian equity gauge retreated on trading volume 6.6 percent higher than the 30-day average.

     Canadian Natural Resources Ltd. declined 4.1 percent after cutting C$2.4 billion of 2015 capital spending, to C$6.2 billion due to the plunge in oil prices.

     The Bloomberg Commodity Index, which tracks a basket of global commodities prices, slumped 1.7 percent to a 2002 low.

     West Texas Intermediate crude plunged 4.7 percent to $46.07 a barrel in New York after a seventh weekly drop.

     Crude has to “stay lower for longer” and trade near $40 a barrel in the first half of the year if investment in shale is to be curtailed to re-balance the global market, according to Goldman analysts in a report.

     First Quantum Minerals Ltd. sank 6.5 percent and Teck Resources Ltd. dropped 3.5 percent. Copper fell in London, touching $5,966, the lowest since October 2009, on concern demand is weakening in China, the largest consumer of the metal, to the weakest since 1990.

     The economy in China is forecast to slow to 7 percent in 2015 from 7.4 percent last year, according to economists’ estimates compiled by Bloomberg.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks fell, after the Standard & Poor’s 500 Index posted its first back-to-back weekly retreats since October, as the continuing selloff in crude pulled down energy shares before the start of corporate earnings.

     Energy shares tumbled 2.8 percent, the most among 10 groups in the S&P 500, as crude dropped 4.7 percent. Tiffany & Co. lost 14 percent after the jewelry retailer lowered its annual forecast after sales declined during the holiday. SanDisk Corp. fell the most in almost six years after reporting preliminary results below its own estimates.

     The S&P 500 slid 0.8 percent to 2,028.26 at 4 p.m. in New York. Losses accelerated after the market’s open as the benchmark gauge fell through its average price for the past 50 days. The Dow Jones Industrial Average lost 96.53 points, or 0.5 percent, to 17,640.84. The Nasdaq 100 Index slid 1 percent as technology shares retreated. About 6.6 billion shares changed hands on U.S. exchanges, 4 percent below the three-month average.

     “When you get the kind of 1 percent moves we’ve had in both directions, there’s definitely still uncertainty out there and that’s usually not the sign of a healthy market,” Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts, said by phone. “With earnings kicking off the question is going to be how much of the decline in energy company earnings is already priced in.”

     The index lost 0.7 percent last week, following a 1.5 percent drop the prior period, amid concern over sliding oil prices, falling U.S. wages and that the European Central Bank’s bond-buying plan won’t be enough to combat deflation.

     Investors were whipsawed during the week as the S&P 500 had up and down swings of more than 1 percent on three separate days, with an average daily move of 1.3 percent for the full week. The volatility stands in contrast to 2014, when the gauge fluctuated 0.53 percent on average each day for the calmest year in U.S. stocks since 2006.

     The S&P 500 has fallen 3 percent since a record in December amid sliding oil prices. That’s prompted analysts to cut their profit forecasts for companies in the index, with reductions spread across nine of 10 industry groups and energy producers seeing the biggest cut.

     “Markets have been volatile because they still haven’t made up their mind whether lower oil prices are positive for consumers and the overall world economy or whether it means more financial stress,” Otto Waser, chief investment officer at R&A Research & Asset Management AG in Zurich, said by telephone. “This has been the tug of war between the two camps. We think it’ll be positive for consumption. We’re overweight in the U.S. this year.”

     Falling oil prices have damped inflation, leaving it below the Federal Reserve’s target even as the economy shows signs of accelerating.

     Equities extended declines in the final minutes of trading after Fed Bank of San Francisco President John Williams, who will vote on policy this year, said raising interest rates in June would be a close call amid “strong momentum” in the labor market and weaker wage gains.

     Fed Chair Janet Yellen told reporters last month not to expect the central bank to raise rates before the end of April, leaving expectations intact for a move around mid-year.

     Profit at companies in the benchmark gauge probably climbed 2 percent in the final quarter of 2014, and 2.8 percent this period, analysts forecast. That’s down from October estimates of 8.1 percent and 9.2 percent, respectively.

     Alcoa Inc. advanced 1.2 percent in late trading after reporting fourth-quarter profit that surpassed analysts’ estimates. The company typically unofficially kicks off the earnings season. Later this week, investors will weigh reports for clues on the health of the world’s largest economy, including retail sales, manufacturing in the New York region and industrial production.

     Schlumberger Ltd., which posts earnings this week, fell 3.9 percent. The world’s largest oilfield-services provider was cut to neutral, the equivalent of a hold, from buy at Goldman Sachs Group Inc.

     Other energy stocks also retreated after Goldman reduced its forecasts for global benchmark crude prices, predicting inventories will increase over the first half of this year. Oil needs to trade near $40 a barrel in the first half of this year to curb shale investments, the bank said. U.S. crude closed near $46 a barrel.

     “Many people are fearful that this is a sign of deflation coming,” Rob Lutts, chief investment officer at Salem, Massachusetts-based Cabot Wealth Management Inc., said via phone. “There’s a little bit more fear in the air and it revolves around things we can’t control, including overseas economies and concern over how fast they’re growing.”

     Exxon Mobil Corp. and Chevron Corp. plunged at least 1.9 percent today to lead declines in the Dow. Forty-two of the 43 members in the S&P 500 Energy Index retreated, as the gauge slumped 2.8 percent. Transocean Ltd. lost 3.7 percent for a 10th straight drop and the lowest level since 1995.

     In Europe, oil-and-gas producers tumbled 1.3 percent for the second-biggest drop in the Stoxx Europe 600, while an index of developing-nation energy companies slid 1.9 percent to pace losses in the MSCI Emerging Markets Index.

     Technology companies in the S&P 500 declined 1.3 percent as SanDisk lost 14 percent. The maker of data-storage chips for mobile devices reported preliminary quarterly revenue that trailed its own forecast on lower sales of retail and flash- technology products.

     Health-care companies declined 0.1 percent amid corporate deals.

     Foundation Medicine Inc. surged 95 percent to $46.74. Roche Holding AG will buy 5 million newly issued shares of Foundation for $50 each, then begin an offer for about half of the company’s existing stock for the same price. The offer is 109 percent above Foundation’s closing stock price last week.

     NPS Pharmaceuticals Inc. jumped 8.2 percent as Shire Plc said it will pay $46 a share in cash. That’s a 9.8 percent premium to NPS’s closing price on Jan. 9 and more than 50 percent higher than its close on Dec. 16, before news broke of Shire’s interest.

     Bristol-Myers Squibb Co. climbed 3.1 percent. The drugmaker said its Opdivo treatment showed better overall survival rates compared with docetaxel, a form of chemotherapy, in a study of patients with a type of lung cancer.

     Express Inc. surged 3.2 percent. The clothing chain boosted its forecast for fourth-quarter earnings and 2015 profit, saying business strengthened in December and the first week of January.

     Lululemon Athletica Inc. gained 6.8 percent. The yogawear maker boosted its forecast for fourth-quarter profit to at least 71 cents a share after previously projecting no more than 69 cents. Analysts estimated profit during the period would be 69 cents. The company also raised its forecast for fourth-quarter revenue.

 

Have a wonderful evening everyone!

 

Be magnificent!

 

“If opportunity doesn’t knock, build a door.” Milton Berle

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

A demonstrator holds pencils in tribute to the victims of a shooting by gunmen at the offices of French satirical weekly Charlie Hebdo, during a demonstration organized by the NGO Rio de Paz (Rio of Peace) in Niteroi, near Rio de Janeiro. Ricardo Moraes/Reuters

A rescued female grizzly bear lies in the snow in its new habitat at New York’s Central Park Zoo. The Central Park Zoo introduced to the public two new inhabitants, grizzly bears Betty and Veronica, who were rescued in 1995 by the Wildlife Conservation Society.

Market Closes for January 9^th, 2015   

Market Index	Close	Change
Dow Jones	17737.37	-170.50
		-0.95%
S&P 500	2044.81	-17.33   -0.84%
NASDAQ	4704.066	-32.121
		-0.68%
TSX	14384.92	-72.80
		-0.50%

International Markets

Market Index	Close	Change
NIKKEI	17197.73	+30.63
		+0.18%
HANG SENG	23919.95	+84.42
		+0.35%
SENSEX	27458.38	+183.67
		+0.67%
FTSE 100	6501.14	-68.82
		-1.05%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.655	1.707
CND. 30 Year Bond	2.221	2.274
U.S.    10 Year Bond	1.9449	2.0092
U.S. 30 Year Bond	2.5289	2.5914

Currencies

BOC Close	Today	Previous
Canadian $	0.84265	0.84526
US $	1.18673	1.18306
Euro Rate 1 Euro=		Inverse
Canadian $	1.40532	0.71158
US $	1.18420	0.84445

Commodities

Gold	Close	Previous
London Gold Fix	1222.52	1215.50
Oil	Close	Previous
WTI Crude Future	48.36	48.83

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, resuming a decline after climbing the most in three weeks yesterday, as bank shares slid to a seven-month low after the economy unexpectedly lost jobs for a second month.

     Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank fell at least 1.2 percent. Kinross Gold Corp. and Yamana Gold Inc. rose at least 5.7 percent as raw-materials shares paced gains. TransCanada Corp. added 0.8 percent after the Nebraska Supreme Court approved a plan for the company’s proposed Keystone XL pipeline to cross the state.

     The Standard & Poor’s/TSX Composite Index fell 72.80 points, or 0.5 percent, to 14,384.92 at 4 p.m. in Toronto. The benchmark equity gauge dropped 2.5 percent this week, snapping three straight gains.

     CIBC sank 1.4 percent to the lowest since March. The S&P/TSX Banks Index lost 1.7 percent, the lowest close since May 2014. Nine of the 10 main industries in the S&P/TSX declined as trading volume was 11 percent below the 30-day average.

     In Canada, employment fell by 4,300, led by declines in part-time positions at hotels and restaurants. The unemployment rate held at 6.6 percent as 11,200 people left the labor force. Economists surveyed by Bloomberg had projected a 15,000 job increase, according to median forecasts.

     The U.S. added 252,000 jobs in December, more than forecast, and the jobless rate declined to 5.6 percent to cap the best year for the labor market since 1999. The report wasn’t all good news as earnings unexpectedly declined from a month earlier.

     West Texas Intermediate crude slipped 0.9 percent to settle at $48.36 a barrel in New York. The price has lost 8.2 percent this week for a seventh straight weekly decline. The S&P/TSX Energy Index has slumped 7.2 percent this week, the most in a month.

     Kinross and Yamana added more than 5.7 percent as raw- materials shares rose 1.7 percent as a group. Gold futures for February delivery gained 0.6 percent to $1,216.10 an ounce in New York.

     Air Canada rose 1 percent, to a seven-year high.

US

By Callie Bost and Michelle F. Davis

     (Bloomberg) — The wildest trading to start a year since 2009 left the Standard & Poor’s 500 Index lower for the week after three straight annual gains of more than 10 percent.

     Investors were whipsawed as the S&P 500 had up and down swings of more than 1 percent on three separate days, with an average move of 1.3 percent for the full five days. The volatility stands in contrast to 2014, when the gauge fluctuated 0.53 percent on average each day for the calmest year in U.S. stocks since 2006.

     Speculation that central banks will support global growth and signs of strength in the U.S. economy spurred the biggest two-day equities rally in three weeks. That optimism gave way to concern over falling U.S. wages and Europe’s ability to fight low inflation. Looming throughout the week was the selloff in oil and its potential to spoil corporate earnings.

     “They talk about the early days of January being a forecast for the year,” Bruce McCain, who helps oversee in excess of $25 billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland, said by phone. “When you look at the trading that we’ve seen — the rapid shift from worries about what the data mean to at least less worry if not some enthusiasm — that’s probably a pretty good template for what we’re going to see.”

     The S&P 500 lost 0.7 percent to 2,044.81 in the five days for its first back-to-back weekly declines since October. The Dow Jones Industrial Average fell 95.62 points, or 0.5 percent, to 17,737.37.

     The broader index tumbled 2.7 percent on the first two days of the week, capping a five-day slide for the worst start to a year since 2008. The gauge rebounded 3 percent in the next two sessions to erase its loss in 2015 before dropping 0.8 percent in the final day.

     Strategists are telling equity derivatives clients to prepare for more frequent bouts of volatility as the bull market approaches its seventh year with a gain of about 200 percent in the S&P 500. Deutsche Bank AG, for one, predicts the end of Federal Reserve stimulus and intermittent panic about the rate of global growth will lead to more equity upheaval.

     The Chicago Board Options Exchange Volatility Index, the gauge of investor anxiety known as the VIX, rose as much as 12 percent and slid as much as 12 percent, mirroring moves in the equity gauge. The VIX finished the week lower by 1.4 percent

     The rout in oil prices weighed on the S&P 500 to start the week, as crude sank below $48 for the first time since 2009. Selling spread from the energy industry to the broader equities market amid concern that cuts in capital spending will hurt corporate results.

     Caterpillar Inc. declined 4.6 percent and an index of railroad stocks lost 3.8 percent on speculation the crude slump may hurt spending on energy-services equipment and oil transportation.

     “Earnings season is kicking off next week and any signs of stress with oil prices turning down is causing investors to be more nervous,” Steven Rees, who helps oversee about $1 trillion as global head of equity strategy at JPMorgan Chase Bank, said via phone. “There’s general anxiety. The overall tone for earnings might be a little more tempered.”

     West Texas Intermediate crude ended the week at the lowest in more than five years on growing evidence OPEC won’t pare output to reduce a global supply surplus.

     Schlumberger Ltd., the oil-services firm that plunged 5.2 percent in the five days, is among the S&P 500 companies that will disclose fourth-quarter earnings next week, after Alcoa Inc. unofficially kicks off the reporting season on Jan. 12. Results for companies in the index will show earnings per share grew 2 percent in the period, analysts tracked by Bloomberg estimate.

     Stocks broke their five-day slide after minutes from the Fed’s last meeting indicated no change in policy makers’ approach to rates. Optimism in the economy grew as data showed a drop in weekly jobless claims and the best year for consumer confidence since 2007.

     The rally got a boost from overseas, where European Central Bank President Mario Draghi said in a letter that central bank stimulus measures may include sovereign-bond buying, while lawmakers in Chancellor Angela Merkel’s party signaled Germany will take a more flexible stance in debt negotiations with Greece.

     The Stoxx 600 Europe erased a gain for the week on the final day of trading on speculation that the ECB’s bond-buying plans won’t be enough to shore up the economy. People familiar with the situation said the central bank is studying models for buying investment-grade assets at amounts less than analysts say is needed.

     U.S. equities dropped 0.8 percent on the week’s last day, as concern over Europe and the biggest drop in American wages since 2006 overshadowed better-than-forecast employment growth and a decline in the jobless rate to 5.6 percent in December.

     “What we experienced this week was a lot like what we saw in the fourth quarter, which was heightened volatility,” Ron Sanchez, executive vice president and chief investment officer at New York-based Fiduciary Trust Co. International, said by phone. “There’s a lot of uncertainty about global growth and lack thereof and as a result, the volatility we exhibited in late 2014 is here to stay. We have some sorting out to do.”

     Eight of 10 main industries in the S&P 500 declined in the week. Energy shares in the index sank the most, plunging 3.6 percent for a third weekly decline.

     Nabors Industries Ltd., Oneok Inc. and Transocean Ltd. retreated at least 11 percent for the biggest losses in the group. Chevron Corp. lost 3.9 percent, while Exxon Mobil Corp. sank 0.8 percent for a third weekly decline.

     JPMorgan Chase & Co. sank 5 percent to lead financial shares lower, while Caterpillar’s slide dragged down industrial stocks. Merck & Co. rallied 9.4 percent for the biggest advance in the Dow, while Boston Scientific Corp. surged 11 percent for the best performance in the S&P 500.

     “What we saw this week was a lot of nervous Nellies that were worried about anything and everything,” Bob Pavlik, who helps oversee $4.5 billion as chief market strategist at Banyan Partners LLC in New York, said by telephone. “There’s volatility — let it scare the traders but don’t let it scare the long-term investor. There’s nothing in the overall concerns that has me changing my outlook. This year is going to continue to improve.”

 

Have a wonderful weekend everyone!

 

Be magnificent!

“One of the most beautiful qualities of true friendship is to understand and to be understood.” Lucius Annaeus Seneca

As ever,

 

Leyla

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

The waning moon is setting over the mountain ‘Les Cornettes de Bise’ located at the border of the Haute-Savoie and the Valais canton of Switzerland in the Chablais Alps, photographed from Glutieres, Switzerland. Anthony Anex/AP

A man looks over the high waves in the Mediterranean Sea in Tel Aviv, Israel, during a heavy winter storm sweeping through the Middle East. Oded Balilty/AP

Market Closes for January 8^th, 2015   

Market Index	Close	Change
Dow Jones	17907.87	+323.35
		+1.84%
S&P 500	2061.99	+36.09   +1.78%
NASDAQ	4736.188	+85.720
		+1.84%
TSX	14458.89	+173.89
		+1.22%

International Markets

Market Index	Close	Change
NIKKEI	17167.10	+281.77
		+1.67%
HANG SENG	23835.53	+154.27
		+0.65%
SENSEX	27274.71	+365.89
		+1.36%
FTSE 100	6569.96	+150.13
		+2.34%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.707	1.650
CND. 30 Year Bond	2.274	2.215
U.S.    10 Year Bond	2.0092	1.9608
U.S. 30 Year Bond	2.5914	2.5205

Currencies

BOC Close	Today	Previous
Canadian $	0.84526	0.84606
US $	1.18306	1.18195
Euro Rate 1 Euro=		Inverse
Canadian $	1.39546	0.71661
US $	1.17953	0.84780

Commodities

Gold	Close	Previous
London Gold Fix	1215.50	1210.50
Oil	Close	Previous
WTI Crude Future	48.83	48.65

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for a second day, climbing the most in three weeks, as Valeant Pharmaceuticals International Inc. extended a record and crude prices held steady.

     Valeant jumped 6.2 percent, extending a record after raising its earnings forecasts for the year. Penn West Petroleum Ltd. and Pacific Rubiales Energy Corp. rallied at least 4.9 percent as energy producers advanced to snap a three-day slump. Insurers Sun Life Financial Inc. and Manulife Financial Corp. rose to pace gains among financials stocks.

     The Standard & Poor’s/TSX Composite Index rose 172.72 points, or 1.2 percent, to 14,457.72 at 4 p.m. in Toronto, the most since Dec. 17. The benchmark equity gauge has rallied 1.5 percent in two days, after posting the worst three-day start to a year since 2007.

     Valeant surged 6.2 percent for a second day of gains to give health-care stocks the best performance in the S&P/TSX. All of the 10 main industries in the S&P/TSX advanced as trading volume was 8.2 percent below the 30-day average.

     Valeant, Canada’s largest drugmaker, said it now forecasts 2015 cash earnings per share of $10.10 to $10.40, from $10. The company also boosted its forecasts for revenue.

     Global stocks rallied on signs central banks will likely remain stimulative. The MSCI World Index jumped 1.9 percent, the most in three weeks, as the S&P 500 rallied 1.8 percent in New York.

     Data in Europe indicated producer prices and German factory orders slid more than anticipated, bolstering the case for the European Central Bank to boost stimulus. The Federal Reserve yesterday signaled no change in interest-rate policy amid accelerating growth in the economy.

     Pacific Rubiales climbed 5.2 percent to C$6.08 and Penn West rose 4.9 percent to C$2.13 as the S&P/TSX Energy Index jumped 1.6 percent. The industry had lost 8.6 percent in the past three days. West Texas Intermediate crude rose 14 cents to settle at $48.79 a barrel in New York.

     Restaurant Brands International Inc., which owns the Burger King and Tim Hortons brands, surged 2.5 percent to C$47.65, a record.

     First Quantum Minerals Ltd. jumped 6.5 percent and Teck Resources Ltd. climbed 4.6 percent as copper rose for the second time in four days.

US

By Joseph Ciolli

     (Bloomberg) — Stocks targeted by bearish traders were among the biggest winners as this week’s rally got started.

     A group of the 50 companies in the Russell 3000 Index with the highest level of short interest rebounded 2.2 percent from an almost 20-month low yesterday, according to data compiled by Goldman Sachs Group Inc. and Bloomberg. That outpaced the Standard & Poor’s 500 Index, which rose 1.2 percent. Today the inverse has been true, with gains in the benchmark index beating the basket.

     The S&P 500 has recovered 3 percent over the past two days after absorbing its fifth decline of 4 percent or more since last January. The change in sentiment was brought about in part by the first gain for crude oil in five sessions, prompting short sellers to reconsider their positions, according to Ben Wallace of Grimes & Co.

     “The market turned around because of the oil rebound and short covering,” Wallace, a portfolio manager at Westborough, Massachusetts-based Grimes, said by phone. “Then you expect short covering to be followed by buying. At this point investors have been conditioned to think that any selloff is only temporary.”

     In a short sale, a bearish trader borrows stock and then sells it, hoping to replace it at a lower price.

     Equities also got a boost yesterday after the Federal Reserve signaled no change in interest-rate policy and optimism increased over employment growth. The benchmark U.S. equity index continued its rebound today, adding 1.8 percent to 2,062.40 at 2:51 p.m., wiping out losses for the year. The Goldman Sachs index of shorted stocks advanced 1.5 percent.

     Investors sought out defensive sectors such as health-care and consumer staples yesterday, making those the two best- performing groups in the S&P 500 with increases of more than 1.7 percent. Today, they embraced riskier areas. Technology companies led with a 2.4 percent increase, while commodity stocks in the index added at least 2 percent.

 

Have a wonderful evening everyone!

 

Be magnificent!

 

“One of the most beautiful qualities of true friendship is to understand and to be understood.” Lucius Annaeus Seneca

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

The eye of a lion is photographed at the zoo in Gelsenkirchen, Germany. Martin Meissner/AP

A man makes a horse stand on its back legs before a traditional Epiphany celebration horse race in Pietrosani, Romania. According to local traditions, following the religious service, villagers get their horses blessed with the Holy water then compete in a race. Vadim Ghirda/AP

Market Closes for January 7^th, 2015   

Market Index	Close	Change
Dow Jones	17584.52	+212.88
		+1.23%
S&P 500	2025.89	+23.28   +1.16%
NASDAQ	4650.469	+57.732
		+1.26%
TSX	14282.01	+35.24
		+0.25%

International Markets

Market Index	Close	Change
NIKKEI	16885.33	+2.14
		+0.01%
HANG SENG	23681.26	+195.85
		+0.83%
SENSEX	26908.82	-78.64
		-0.29%
FTSE 100	6419.83	+53.32
		+0.84%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.650	1.636
CND. 30 Year Bond	2.215	2.201
U.S.    10 Year Bond	1.9608	1.9402
U.S. 30 Year Bond	2.5205	2.5023

Currencies

BOC Close	Today	Previous
Canadian $	0.84606	0.84464
US $	1.18195	1.18394
Euro Rate 1 Euro=		Inverse
Canadian $	1.39949	0.71455
US $	1.18405	0.84456

Commodities

Gold	Close	Previous
London Gold Fix	1210.50	1217.51
Oil	Close	Previous
WTI Crude Future	48.65	47.93

Market Commentary:

Canada

By Michelle F. Davis

     (Bloomberg) — Canadian stocks rebounded from the biggest two-day plunge in 19 months, as Valeant Pharmaceuticals International Inc. closed at a record and gains in consumer shares offset declines in energy producers.

     Valeant surged 1.6 percent, contributing the most to gains in the benchmark index. Penn West Petroleum Ltd. and Crew Energy Inc. each fell more than 6 percent to lead energy shares to a third straight loss. Iamgold Corp. and Detour Gold Corp. fell at least 3.9 percent as gold tumbled for the first time this year.

     The Standard & Poor’s/TSX Composite Index advanced 38.23 points, or 0.3 percent, to 14,285 at 4 p.m. in Toronto, trimming an earlier gain of as much as 1.3 percent in afternoon trading. The benchmark equity gauge fell 3.4 percent in the previous two days, the most since April 15, 2013.

     Eight of the 10 main industries in the S&P/TSX increased on trading volume 4.2 below the 30-day average.

     Consumer shares advanced at least 1.4 percent to pace gains, with Hudson’s Bay Co. rallying 4.4 percent for among the biggest increases. Financial shares, which account for about one-third of the index’s weighting, added 0.5 percent.

     Energy shares decreased for a third-straight day, erasing an earlier gain of as much as 1.9 percent. West Texas Intermediate oil futures advanced 1.9 percent, the first gain in five sessions after dropping below $50 for the first time since April 2009.

     The rout in oil prices led to a plunge in Canada’s crude shipments in November, triggering the biggest export drop in almost three years and widening the national trade deficit, Statistics Canada said today.

     The report is a setback for policy makers relying on foreign demand to lead an economic recovery. Plunging prices for Canada’s top export may curb the value of shipments abroad this year, eroding any benefit manufacturers receive from faster U.S. growth and a lower currency.

     Equities trimmed gains in afternoon trading today after most U.S. Federal Reserve officials agreed an interest rate increase is unlikely before late April, according to December meeting minutes released today.

US

By Callie Bost

     (Bloomberg) — The Standard & Poor’s 500 Index rallied the most in three weeks, halting a five-day selloff, as data stoked optimism on the economy and Federal Reserve minutes did little to change investor expectations on interest rates.

     The S&P 500 jumped 1.2 percent to 2,025.90 at 4 p.m. in New York, after plunging 4.2 percent over the previous five days. The Dow Jones Industrial Average climbed 212.88 points, or 1.2 percent, to 17,584.52. More than 7 billion shares changed hands on U.S. exchanges, 1.6 percent above the three-month average.

     “We had some good economic news and the market got tired of going down,” Randy Bateman, the chief investment officer of Huntington Asset Advisors, which manages about $2.3 billion in the funds, said by phone.

     Before today, U.S. equities were off to the worst start for any year since 2008, with the S&P 500 dropping 2.7 percent in the first three sessions of 2015. The losses trimmed the index’s return since the bull market began in March 2009 to 196 percent and followed an advance of 11.4 percent in 2014.

     Stocks rallied at the market’s open as data on the labor market and the U.S. trade deficit bolstered confidence in the strength of the economy. Equities extended gains at midday as lawmakers in Chancellor Angela Merkel’s coalition said Germany is leaving the door open to debt-relief talks with Greece’s next government, signaling a more flexible stance than her administration has taken publicly.

     Equities maintained gains after the central bank released minutes from their December meeting. Most Fed officials agreed their new policy guidance means they are unlikely to raise interest rates before late April, and a number expressed concern inflation could remain too low.

     In a statement following that meeting, the Fed pledged to be patient in its approach to raising rates, while Chair Janet Yellen said the central bank will probably hold rates near zero through at least the first quarter.

     “From the Fed’s perspective, they’re seeing more of the same,” Stephen Wood, chief market strategist at Russell Investments in New York, said by phone. “The Fed has used forward guidance more effectively and the markets are responding to a consistent message and consistent policy path. The takeaway is the Fed isn’t changing anything any time soon.”

     Central bank officials said the faltering global economy may be a threat to the U.S., while concluding that those risks were “nearly balanced” by positive developments.

     Several policy makers said consumer and business confidence and payroll gains suggest the economy “may end up showing more momentum than anticipated,” while a few others said the boost to spending from cheaper oil and gas prices “could turn out to be quite large.”

     Some officials worried the oil decline could reduce longer- term inflation expectations, while others were concerned a drop in market-based inflation measures might reflect that “such a decline had already begun.”

     West Texas Intermediate has fallen 15 percent since the Fed’s last meeting. A combination of rising supply as domestic production picks up and slower growth overseas that’s reducing demand is leading to a rout in oil prices that has continued into 2015.

     “In general it seems they’re not too worried about inflation, and the oil shock is a temporary inflationary dampener,” said Frank Maeba, managing partner at Breton Hill Capital in Toronto. His firm manages about C$700 million ($592 million). “In the long term it will be outweighed by a general pickup in GDP and jobs.”

     Data from the Roseland, New Jersey-based ADP Research Institute showed companies in the U.S. added 241,000 workers in December, the most since June, indicating the U.S. job market was sustaining strength as 2014 drew to a close.

     The ADP data comes before the Labor Department’s report on Jan. 9, which may show payrolls, including government agencies, climbed 240,000 in December after a 321,000 increase a month earlier, according to the median forecast of economists surveyed by Bloomberg. The unemployment rate is projected to fall to 5.7 percent, the lowest since 2008.

     A separate report today showed the trade deficit narrowed more than forecast in November as U.S. petroleum imports sank to the lowest level in more than five years. Outside of fuel, Americans bought record amounts of consumer goods that shows the world’s largest economy is strengthening.

     “Investors have been overly pessimistic given the underlying fundamentals,” Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management LLC, said by phone. “The underlying fundamentals are still very strong. Today’s ADP payroll report was positive, and central to everything is the labor market. If the labor market is strong, the economy is doing OK and this does bode well for Friday.”

     The bull market in equities, approaching its seventh year, has endured 30 declines of 4 percent or more. Last year, the benchmark gauge advanced 11 percent after experiencing three pullbacks of more than 4 percent and then recovering all the losses each time within one month.

     Investors expect this month’s swings to calm down as the year progresses, options trading shows. The Chicago Board Options Exchange Volatility Index, a measure of demand for options on the S&P 500, dropped 8.6 percent to 19.31 after rising for six out of the previous seven days. At 21.12 yesterday, the gauge was higher than all nine of its monthly futures contracts with expiration dates ranging from Jan. 21 to Sept. 16.

     Losses in equities have pushed the S&P 500’s price-earnings ratio down to 17.9 from as high as 18.5 on Dec. 29, according to data compiled by Bloomberg. The decade average is 16.3. Stocks are trading at about 1.8 times annual sales, compared with an average of 1.4 over the last 10 years.

     Stocks are cheap relative to bonds and global earnings should climb by 9 percent this year, Citigroup Inc. wrote in a note dated yesterday. The firm boosted its rating on U.S. equities to neutral from underweight, similar to sell, citing an increase in preference for growth.

     Nine out of 10 major industries in the S&P 500 advanced today. Health-care and consumer shares had the biggest gains, rising at least 1.5 percent.

     Energy stocks rose 0.3 percent, following a 5.3 percent tumble over the previous two days. West Texas Intermediate oil climbed 1.3 percent. Brent earlier slipped below $50 a barrel for the first time since May 2009.

     Anadarko Petroleum Corp. jumped 1.6 percent, pacing gains among energy producers in the S&P 500. Halliburton Co. rallied 2.7 percent and Exxon Mobil Corp. increased 1 percent.

     Helmerich & Payne Inc. plunged 6.6 percent for the worst performance in the S&P 500. The oil drill provider said low oil prices are “increasingly impacting” the U.S. land drilling market.

     The Nasdaq Biotechnology Index surged 3.6 percent for the biggest jump since April. Alexion Pharmaceuticals Inc. gained 5.6 percent for the biggest advance in the S&P 500. Biogen Idec Inc. also rallied 5.6 percent.

     J.C. Penney surged 20 percent. Fourth-quarter comparable- store sales will be at the upper end of its projected increase of 2 percent to 4 percent, the Plano, Texas-based department- store chain said.

     Monsanto Co. climbed 1.3 percent. The biggest seed company posted better-than-estimated fiscal first-quarter earnings and revenue, helped by sales of its newest soybean variety that’s genetically modified to withstand pests in South America.

     Eli Lilly & Co. lost 0.7 percent. The company forecast earnings for 2015 that missed analyst predictions even as the drugmaker said sales will rebound led by medications for diabetes, oncology and animal health.

 

Have a wonderful evening everyone!

 

Be magnificent!

 

“The most important thing is to enjoy your life – to be happy – it’s all that matters.” – Audrey Hepburn

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Visitors walk past large ice sculptures during the Harbin International Ice and Snow Festival in the northern city of Harbin, Heilongjiang province, China. The winter event runs through the end of February and draws several million tourists each year. Kim Kyung-Hoon/Reuters  crocodiles. Toby Melville/Reuters

A Hubble telescope photograph of the iconic Eagle Nebula’s ‘Pillars of Creation’ is seen in this NASA image released today. By comparing 1995 and 2014 pictures, astronomers noticed a lengthening of a narrow jet-like feature that may have been ejected from a newly-forming star. Over the intervening 19 years, this jet has stretched farther into space, across an additional 60 billion miles, at an estimated speed of about 450,000 miles per hour. NASA/ESA/Hubble Heritage Team/Reuters

Market Closes for January 6^th, 2015   

Market Index	Close	Change
Dow Jones	17371.64	-130.01
		-0.74%
S&P 500	2002.61	-17.97   -0.89%
NASDAQ	4592.736	-59.837
		-1.29%
TSX	14246.77	-145.93
		-1.01%

International Markets

Market Index	Close	Change
NIKKEI	168883.19	-525.52
		-3.02%
HANG SENG	23485.41	-235.91
		-0.99%
SENSEX	26987.46	-854.86
		-3.07%
FTSE 100	6366.51	-50.65
		-0.79%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.636	1.690
CND. 30 Year Bond	2.201	2.246
U.S.    10 Year Bond	1.9402	2.0320
U.S. 30 Year Bond	2.5023	2.5987

Currencies

BOC Close	Today	Previous
Canadian $	0.84464	0.85017
US $	1.18394	1.17629
Euro Rate 1 Euro=		Inverse
Canadian $	1.40585	0.71131
US $	1.18742	0.84216

Commodities

Gold	Close	Previous
London Gold Fix	1217.51	1204.97
Oil	Close	Previous
WTI Crude Future	47.93	50.04

Market Commentary:

Canada

By Doug Alexander

     (Bloomberg) — Bank of Nova Scotia was Canada’s top arranger of stock sales for the first time since 2002 after exclusively leading offerings for Manulife Financial Corp. and Veresen Inc. in a year fueled by energy financings.

     Canadian stock sales climbed to a four-year high of $34.5 billion last year, with oil-and-gas firms accounting for about35 percent of the total, according to data compiled by Bloomberg. The amount companies raised through Canadian initial public offerings, secondary sales and convertible debentures inched up from $34.1 billion in the prior year, the data show.

     “Energy was a significant contributor to the activity level both in terms of acquisition finance and also IPOs and follow-on offerings,” said John McCartney, managing director and head of global equity capital markets at Scotia Capital.“We were on our way to surpassing the record issuance of 2009, but a very quiet final quarter of the year had us fall short.”

     Crude oil plunged 54 percent from a June 20 high amid a glut in supplies and a battle for market share between the U.S. and Organization of Petroleum Exporting Countries. Surging production and slower-than-expected demand growth also contributed to the rout, which saw oil-and-gas producer Teine Energy Ltd. push back the timing of its IPO.

     Scotiabank was credited on 33 deals for $5.1 billion in 2014, while Royal Bank of Canada’s RBC Capital Markets, which previously held top spot for two straight years, ranked second with 44 deals for $4.86 billion, the data show. Scotiabank, the country’s third-biggest bank by assets, hasn’t ranked higher than second since 2008.

     Bank of Montreal’s BMO Capital Markets fell to third from second, with 51 sales for $4.28 billion. Canadian Imperial Bank of Commerce was fourth with $3.9 billion of sales, edging past fifth-ranked Toronto-Dominion Bank’s TD Securities by less than$1 million.

     The figures and rankings, which exclude preferred share sales and self-led deals, were current as of today and may change as more transactions are recorded.

     RBC, which ranked No. 1 for domestic stock sales seven times in the past decade, helped oversee some of last year’s largest deals including Scotiabank’s sale of C$2.62 billion ($2.25 billion) shares of CI Financial Corp. in May. Energy will likely play less of a role in stock sales this year, though issuance by consumer companies, retailers and industrial firms may pick up, said Kirby Gavelin, RBC’s head of Canadian equity capital markets.

     “Canadian equity new-issue finance may not be as high as what we saw last year, but we don’t see it dropping by a major factor,” Gavelin said in an interview. “There’s M&A activity, expansion activity and other parts of the economy that have the potential to be more active than energy perhaps this year.”

     Scotiabank had mandates including landing the sole bookrunner role for Manulife’s sale of C$1.76 billion in subscription receipts in September, and Veresen’s C$920 million sale of subscription receipts the same month.

     “We’ve had a long history with these clients,” said Scotia Capital’s Lawrence Lewis, a vice chairman in equity capital markets. “We were able to get Manulife exceptionally tight terms, very good terms for the size required on a time- effective basis.”

     Scotiabank’s ties with Calgary-based Veresen, an owner of natural-gas pipelines, go back to the 1990s, when the bank took the company known then as Fort Chicago public.

     “The firm’s had strong relationships, we’ve done equity financings, preferred financings and we know the management well,” Lewis said. “It’s allowed us to be in a competitive position to sole lead these transactions.”

     Five stock sales each raised more than C$1 billion, with Encana Corp.’s C$2.6 billion September sale of its remaining stake in PrairieSky Royalty Ltd. topping the list.

     PrairieSky Royalty was also Canada’s biggest IPO last year — and the largest in the country since 2000 — after Encana raised C$1.67 billion including an over-allotment in its May initial sale of its 46 percent stake.

     Companies raised $3.6 billion from 29 IPOs last year, the highest amount since 2010, with CIBC No.1 based on value with roles on PrairieSky, Northern Blizzard Resources Inc. and Journey Energy Inc.  “The No. 1 ranking in IPOs is something that is absolutely essential to us,” Benoit Lauze, CIBC’s head of equity capital markets, said in a phone interview. “The IPO market leads to a lot of follow-on activity, typically, so this bodes very well for CIBC going forward given that we were bookrunner on most of the very large IPOs.”

     Beyond energy, Catalyst Capital Group Inc. raised $264 million in an IPO of its Callidus Capital Corp. unit, while technology firms Kinaxis Inc. and Lumenpulse Inc. each raised about $105 million in IPOs last year. A more diverse group of companies, such as retailers, technology firms and those involved in consumer products, may tap public markets for the first time this year, Lauze said.

     “Recent market volatility will certainly have an impact on equity new issue markets in 2015, with lower oil prices leading to lower oil and gas issuance,” said Sante Corona, head of equity capital markets at TD Securities. “There are sectors that stand to benefit from lower oil prices and a weaker Canadian dollar, and we may see issuance from those sectors such as industrials or companies that sell into U.S. markets.”

     IPO candidates include Inovent Capital Inc. and Canada Jetlines Ltd., which are marketing a C$50 million offering to fund a new “ultra-low cost” airline out of Vancouver International Airport, according to company filings. And BitGold Inc. co-founder Roy Sebag said in a December interview that he aims to raise as much as C$20 million in a Toronto IPO within six months for a business that will enable customers to swap their holdings between gold bullion and bitcoins.

     Both of those deals would pale in comparison to any sale of part of Vale SA’s base metals unit. After buying Canadian nickel producer Inco Ltd. eight years ago, the Brazilian miner said Dec. 2 it may sell a minority stake in the unit, valued as much as $35 billion.

     “Vale’s been well broadcast and that could clearly come, as well as some of the unnamed senior mining companies who do have debt and will have to deleverage in this environment,” Peter Miller, head of Canadian equity capital markets at BMO Capital Markets, said in an interview. “They could come with some chunky offerings.”

US

By Michael P. Regan

     (Bloomberg) — Perusing the list of the biggest stock- market losers since the price of oil peaked in June yields some predictable results.

     You have your large-cap energy companies like Transocean Ltd., Denbury Resources Inc., Nabors Industries Ltd., Noble Corp. and Halliburton Co., all down at least 45 percent.

     Yet mixed in with all the obvious ugliness are some names that bring to mind the question asked of Billy Joel by those drinkers at the piano bar, or perhaps even some of the wedding guests who watched him walk down the aisle with Christie Brinkley: Man, what are you doing here?

     The answer illustrates how much of an impact the energy industry has had on the bottom line of corporate America, whether it’s companies profiting from the boom in domestic production or those that made big investments based on the premise that fuel will always be expensive. As such it helps explain why the entire stock market, not just the energy companies, tends to freak out when oil heads lower rapidly.

     The big bets on high energy prices made by companies like Ford Motor Co. (down 13 percent since oil peaked on June 20) or Tesla Motors Inc. (down 10 percent) or Boeing Co. (down 3.9 percent) jump immediately to mind.

     Not so obvious, unless you follow the stock closely, is the investment made by Fifth Third Bancorp, one of the regional lenders that tried to chase the fracking boom. (It’s down 12 percent since June 20.)

     Here’s how the company’s management described the rationale for the launch of a new national energy banking team two years ago: “The energy sector is a rapidly growing industry,” said the announcement. The new team “demonstrates our commitment to providing dedicated banking services to this evolving sector.The oil and natural gas sector represents a tremendous growth opportunity.”

     The sector certainly is “evolving.” Fitch Ratings last month identified regional banks lifted by the shale boom that now face potential credit pressures in loans related to the industry. Oil prices below $50 a barrel, like now, would likely trigger a jump in credit losses, Fitch said.

     Fitch’s list of banks with high concentrations of loans to the industry is topped by BOK Financial Corp., which is down 13 percent since June 20.; Cullen/Frost Bankers Inc., down 16 percent; Hancock Holding Company, down 19 percent; Comerica Inc., down 14 percent; and Amergy Bank of Texas, a subsidiary of Zions Bancorp, which is down 13 percent.

     Losses are even worse among the industrial companies that provide the services and sell the pipes, valves and assorted doodads used to pump oil and gas.

     Fluor Corp., an engineering, maintenance and project management firm that counted on the oil and gas industry for 42 percent of its revenue in 2013, is down 27 percent since June 20. Flowserve Corp., whose pumps and valves are used in refineries and pipelines, is off about the same amount.

     Caterpillar Inc., Joy Global Inc., Allegheny Technologies Inc., Dover Corp., Jacobs Engineering Group and Quanta Services Inc. are all down more than 20 percent since oil peaked at almost $108.

     Morgan Stanley last month detailed stocks that stand to benefit from lower oil prices, such as airlines and consumer companies, and concluded cheaper fuel is a net benefit for the U.S. economy.

     Yet the firm’s list of stocks outside the energy and industrial sectors that could be challenged was not short, and included some surprising names: from Sprint Corp. to Intelsat SA in the telecommunications industry, to Agilent Technologies Inc. and Varian Medical Systems Inc. in health care, and investment firms like Carlyle Group LP and real-estate investment trusts such as American Residential Properties Inc.

     Just yesterday, U.S. Steel Corp. warned of potential layoffs for 756 employees at two plants that stand to be hurt by lower spending by energy companies.

     Anyway, the latest boom and bust in the energy industry calls to mind another Billy Joel lyric, reflecting on a summer in Highland Falls, New York, a state where our reason coexists with our insanity and fracking was banned last month: We are always what our situations hand us, it’s either sadness or euphoria.

Have a wonderful evening everyone!

 

Be magnificent!

 

Thousands of candles can be lighted from a single candle, and the life of the candle will not be shortened. Happiness never decreases by being shared.

Buddha

As ever,

 

Leyla

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

People slide on on an ice sculpture illuminated by colored lights during opening day of the 31st Harbin International Ice and Snow Festival in the northern city of Harbin, Heilongjiang province. Harbin is one of the coldest cities in China. Kim Kyung-Hoon/Reuters

A Sumatran tiger cub at the London Zoo poses for a photographer. The annual stock take and animal count, a requirement of the zoo’s license, included additions to the international conservation breeding program such as three tiger cubs and Philippine crocodiles. Toby Melville/Reuters

Market Closes for January 5^th, 2015   

Market Index	Close	Change
Dow Jones	17501.65	-331.64
		-1.86%
S&P 500	2020.58	-37.62   -1.83%
NASDAQ	4652.574	-74.238
		-1.57%
TSX	14392.70	-360.95
		-2.45%

International Markets

Market Index	Close	Change
NIKKEI	17408.71	-42.06
		-0.24%
HANG SENG	23721.32	-136.50
		-0.57%
SENSEX	27842.32	-45.58
		-0.16%
FTSE 100	6417.16	-130.64
		-2.00%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.690	1.744
CND. 30 Year Bond	2.246	2.296
U.S.    10 Year Bond	2.0320	2.1105
U.S. 30 Year Bond	2.5987	2.6873

Currencies

BOC Close	Today	Previous
Canadian $	0.85017	0.84853
US $	1.17629	1.17850
Euro Rate 1 Euro=		Inverse
Canadian $	1.40371	0.71238
US $	1.19333	0.83799

Commodities

Gold	Close	Previous
London Gold Fix	1204.97	1172.00
Oil	Close	Previous
WTI Crude Future	50.04	52.69

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks posted the steepest plunge since 2013, joining a global selloff, as banks and energy producers tumbled after oil prices slumped below $50 a barrel for the first time in five years amid concern over Greece.

     MEG Energy Corp. and Legacy Oil & Gas Inc. sank at least 19 percent as energy stocks fell 5.5 percent as a group. Toronto- Dominion Bank and National Bank of Canada slumped more than 2.3 percent as bank shares declined a fourth day. First Quantum Minerals Ltd. lost 8.3 percent with copper at a four-year low.

     The Standard & Poor’s/TSX Composite Index fell 360.95 points, or 2.5 percent, to 14,392.70 at 4 p.m. in Toronto, the biggest decline since June 2013. The benchmark equity gauge rose 7.4 percent in 2014.

     “Today’s move below $50 has created more panic in the oil patch and the energy sector,” said Andrew Pyle, fund manager at ScotiaMcLeod Inc., via phone from Peterborough, Ontario. He manages about C$300 million ($255.3 million). “The market ran out of reasons to convince itself Greece wasn’t a problem. Greece is still a problem and to think it wouldn’t affect the market was naive.”

     Nine of 10 industries in the S&P/TSX fell as trading volume was 3.6 percent lower than the 30-day average today. All 66 members of the S&P/TSX Energy Index declined.

     West Texas Intermediate oil slumped below $50 a barrel in New York for the first time since April 2009 and settled at $50.04, a 5 percent decline. Brent crude plunged 5.9 percent to $53.11 as record supplies in Iraq and Russia bolstered speculation the global glut will continue.

     MEG Energy tumbled 22 percent to C$16.02, a record loss, and Legacy Oil & Gas retreated 19 percent to C$1.82, most since April 2009. The S&P/TSX Energy Index, the worst-performing industry in the broader benchmark last year, lost 5.5 percent, the biggest drop in a month.

     “It’s a correction, it started months ago and it hasn’t run its course,” said Bob Decker, fund manager at Aurion Capital Management Inc. in Toronto. His firm manages about C$6 billion.

     It would take a recovery in global growth to turn things around for the Canadian index, “but we haven’t seen any indication of that,” Decker said.

     Toronto-Dominion Bank, the nation’s largest lender by assets, sank 2.3 percent to C$53.94 and National Bank plunged 4.9 percent to C$47.60, the largest decline since December 2009, as the S&P/TSX Banks Index lost 2.3 percent for a fourth day of losses.

     Canadians are the least optimistic since May 2013 that home prices will keep rising, according to the latest polling data compiled by Nanos Research for Bloomberg. The share of survey respondents predicting higher prices fell to 31.1 percent last week, from as high as 47 percent in July.

     The slump in Canada joined a selloff in equity markets around the world. The MSCI All-Country World Index, which includes both developed and developing markets, slumped 1.9 percent, the most in a year. The S&P 500 sank 1.8 percent to 2,020.58 in New York, the biggest loss since October.

     First Quantum Minerals declined 8.3 percent to C$15.85 and Teck Resources Ltd., the nation’s largest diversified miner, dropped 3.5 percent to C$15.57 as copper fell a third day to extend a four-year low.

     Iamgold Corp. jumped 7.6 percent to C$3.55 as gold for February delivery advanced a second day, up 1.5 percent to settle at $1,204 an ounce in New York.

US

By Michelle F. Davis and Joseph Ciolli

     (Bloomberg) — Stocks fell around the world as energy shares plunged and U.S. crude oil sank below $50 for the first time since April 2009. The euro weakened to an almost nine-year low, while Treasuries rose with gold on demand for haven assets.

     The Standard & Poor’s 500 Index fell 1.8 percent by the 4 p.m. close, its biggest drop since Oct. 9. The Stoxx Europe 600 Index slid 2.2 percent, as a gauge of European energy stocks dropped the most in three years. West Texas Intermediate oil tumbled as much as 5.5 percent to $49.77 a barrel. The euro declined 0.5 percent to $1.1937, after touching its weakest level since March 2006. Yields on 10-year Treasuries fell eight basis points to 2.04 percent. Gold futures added 1.5 percent.

     The S&P 500 capped its first four-day slump since December 2013 as a gauge of global stocks slid the most in almost a year. Record supplies from Iraq and Russia coupled with concern over slowing demand fueled oil’s declines, while concern over Greece intensified as Prime Minister Antonis Samaras said this month’s election could lead to the nation exiting the euro area. Data today showed German inflation slowed more than forecast, bolstering the case for European quantitative easing.

     “This fear trade is being sparked by the deflationary concerns over in Europe,” said Chad Morganlander, a money manager at St. Louis-based Stifel, Nicolaus & Co., which oversees about $160 billion. “Sprinkle that together with the fact that it looks as if oil prices are going to continue to see lower lows in the course of the next couple weeks, and it puts together a risk-off trading environment within the markets.”

     The MSCI All-Country World Index plunged 1.9 percent, the most on a closing basis since Jan. 24 last year, as all but one of the 24 developed market gauges tracked by Bloomberg retreated. Australia’s S&P/ASX 200 Index added 0.3 percent, the only gainer.

     All of the 10 main S&P 500 industry groups declined as the sub-index of energy companies plunged 4 percent. S&P 500 energy stocks fell 10 percent in 2014 for the worst performance among the groups. A gauge of oil and gas explorers and producers tumbled 5.9 percent, with all 18 members declining. Chevron Corp. lost 4 percent today, the most since November.

     WTI crude settled 5 percent lower in New York, at $50.04 a barrel, the lowest close since April 28, 2009. Brent oil slid 5.9 percent to $53.11 per barrel in London, its lowest settlement since May 1, 2009, amid speculation a global glut that drove oil into a bear market will persist this year.

     Iraq plans to expand crude exports to 3.3 million barrels a day this month, Oil Ministry spokesman Asim Jihad said by phone yesterday. The country exported 2.94 million a day in December, the most since the 1980s, he said. Russian oil production rose to a post-Soviet record of 10.67 million barrels a day in December, according to Energy Ministry data published Jan. 2.

     Shares of Caterpillar Inc. slid 5.3 percent, the most since October 2013, to lead the Dow Jones Industrial Average down 1.9 percent. The company, already battered by a slump in demand for its mining machinery, faces slowing sales of compressors, pumps and gas turbines as oil companies reduce spending.

     The S&P 500 fell 1.5 percent last week as traders sold shares that rose the most in 2014 and scrutinized growth prospects after a three-year rally that took benchmark indexes to records. Professional forecasters are calling for an 8.5 percent advance in the index this year.

     European stocks fell the most in three weeks as oil’s retreat and the speculation over Greece’s euro membership overshadowed the prospect of increased stimulus from the European Central Bank. Oil companies in the Stoxx 600 declined 4.9 percent, the most among 19 industry groups, as BP Plc and Total SA dropped at least 4.3 percent.

     Greece’s ASE Index lost 5.6 percent for the biggest decline among 18 western-European stock gauges.

     “The declines in oil are representing something much more ominous, which is a global economic slowdown,” Jeff Sica, president and CEO of advisory firm Circle Squared Alternative Investments, which oversees $1.5 billion, said by phone. “Investors have gone past the thought that this is good for the economy.”

     The inflation rate in Germany, the euro region’s largest economy, fell to 0.1 percent in December from 0.5 percent in November, the Federal Statistics office in Wiesbaden said today. That’s the lowest level since October 2009.

     ECB officials are debating whether to start large-scale buying of government bonds in an attempt to boost consumer prices in the euro area and stimulate the economy. President Mario Draghi, who is trying to counter arguments that bond purchases would see the central bank take on too much risk and reduce the incentive for economic reforms, has said the possibility of deflation can’t be excluded.

     Adding to pressure on the euro is the prospect that the Federal Reserve will raise interest rates this year, boosting the allure of the dollar. Intercontinental Exchange Inc.’s Dollar Index, which measures the U.S. currency against major peers, rose to its strongest level since December 2005.

     “It’s very hard to imagine something that can convince the market that the euro is not a selling opportunity at this juncture,” said Roberto Mialich, a senior currency strategist at UniCredit SpA in Milan. “The market continues to speculate that the ECB will start QE this month. The election in Greece probably complicates the agenda for Draghi.”

     Yields on Greece’s three-year notes rose 127 basis points, or 1.27 percentage point, to 13.21 percent. Rates touched 14.07 percent Jan. 2. The nation’s 10-year yields increased 41 basis points to 9.67 percent, having reached 9.85 percent Dec. 29. Italy’s 10-year rates climbed 10 basis points to 1.84 percent, having touched a record low of 1.737 percent Jan. 2.

     Treasuries rose, pushing 30-year bond yields to the lowest level in more than two years. Rates slipped eight basis points to 2.61 percent, the least since Aug. 2, 2012.

     Bill Gross, the former manager of the world’s largest bond fund, predicted the Fed won’t raise U.S. rates until late this year “if at all.”

     While the U.S. central bank has concluded its three rounds of asset purchases interest rates in almost all developed economies will remain near zero as policy makers in Europe and Japan embark on similar projects, Gross said today in an outlook report published on the website of Janus Capital Group Inc.

     Gold futures rose for a second trading day, climbing 1.5 percent to $1,204 an ounce. Silver futures jumped 2.8 percent.

     The MSCI Emerging Markets Index dropped 1.4 percent today and a gauge of 20 developing-nation currencies fell for a second day, sliding 0.9 percent to a 12-year low. Brazil’s Ibovespa stock gauge slid 2.1 percent.

     “It is a cautious start to the year,” said Neil Shearing, chief emerging-markets economist at London-based Capital Economics Ltd. “The signs that problems are building in Greece are adding to an already long list of things for emerging-market investors to worry about.”

     Russia’s dollar-denominated RTS Index retreated 3.7 percent, while the ruble-based Micex index gained 2.8 percent. The Dubai Financial Market Index tumbled 3.4 percent, Saudi Arabia’s Tadawul All Share Index lost 3 percent and Qatar’s benchmark gauge declined 1.9 percent.

     The Shanghai Composite Index advanced 3.6 percent to the highest close since August 2009 as investors bought shares of the largest companies and developers on the first trading day of 2015 in mainland China. The Hang Seng China Enterprises Index of slipped 0.3 percent after gaining 3.4 percent over the previous two trading days.

     China’s benchmark money-market rate dropped by the most in almost two weeks today as cash returned to the financial system with the end of the holiday season.

 

Have a wonderful evening everyone!

 

Be magnificent!

 

“True life is lived when tiny changes occur.”

Leo Tolstoy

As ever,

 

Leyla

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE YEAR

Seattle Seahawks fans Todd Gibson and his son Carsten cheer their team near the field at Super Bowl XLVIII in East Rutherford, N.J. The Seahawks defeated the Denver Broncos, 43-8. Ann Hermes

Peter Schumann, founder and director of Bread and Puppet Theater, sits in the Bread and Puppet Museum in Glover, Vt. Ann Hermes

Market Closes for January 2^nd, 2015   

Market Index	Close	Change
Dow Jones	17832.99	+9.92
		+0.06%
S&P 500	2058.20	-0.70   -0.03%
NASDAQ	4726.813	-9.241
		-0.20%
TSX	14753.65	+121.21
		+0.83%

International Markets

Market Index	Close	Change
NIKKEI	17450.77	-279.07
		-1.57%
HANG SENG	23857.82	+252.78
		+1.07%
SENSEX	27887.90	+380.36
		+1.38%
FTSE 100	6547.80	-18.29
		-0.28%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.744	1.813
CND. 30 Year Bond	2.296	2.359
U.S.    10 Year Bond	2.1105	2.1871
U.S. 30 Year Bond	2.6873	2.7563

Currencies

BOC Close	Today	Previous
Canadian $	0.84853	0.86121
US $	1.17850	1.16111
Euro Rate 1 Euro=		Inverse
Canadian $	1.41415	0.70714
US $	1.19995	0.83337

Commodities

Gold	Close	Previous
London Gold Fix	1172.00	1206.00
Oil	Close	Previous
WTI Crude Future	52.69	54.12

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose to a one-month high, capping a third weekly gain, as health-care shares rallied with commodities producers on higher gold prices.

     Detour Gold Corp. and Silver Standard Resources Inc. gained at least 6.7 percent as miners advanced. Valeant Pharmaceuticals International Inc. rose 2.2 percent. Ballard Power Systems Inc. sank 9.7 percent after saying it ended two licensing agreements in China and will miss revenue targets.

     The Standard & Poor’s/TSX Index rose 121.21 points, or 0.8 percent, to 14,753.65 at 4 p.m. in Toronto, the highest since Dec. 3. The index gained 1 percent in the holiday-shortened week. Trading volume was 47 percent lower than the 30-day average today.

     All 10 industries in the S&P/TSX advanced, with materials shares jumping 2.9 percent as gold and silver rose. Health-care stocks rose 2.2 percent.

     Detour Gold jumped 10 percent to C$10.44 and Agnico Eagle Mines Ltd. surged 9.7 percent to C$31.72 to pace gains. Gold futures rallied from a four-week low, increasing 0.2 percent to settle at $1,186.20 an ounce in New York. Gold dropped 1.5 percent last year as U.S. equity markets climbed to records.

     Silver Standard Resources rose 6.7 percent to C$6.22 as silver for March delivery climbed 1.1 percent to $15.768 an ounce.

     Catamaran Corp., a provider of pharmacy benefits services, advanced 2.2 percent to C$61.44, a record. The stock rose 19 percent last year, a seventh straight annual increase. Valeant rallied 2.2 percent to an all-time high of C$169.99 after a fourth straight gain.

     Ballard, which makes and sells hydrogen fuel cells, sank 9.7 percent to C$2.14, the biggest decrease since April. The Burnaby, British Columbia-based company ended two license pacts in the Chinese market with Azure Hydrogen due to “material breaches” and said it will consider legal remedies.

US

By Michelle F. Davis and Joseph Ciolli

     (Bloomberg) — U.S. stocks were little changed, erasing earlier losses, as gains in utilities and energy companies offset a slide in small-caps amid data showing manufacturing expanded less than forecast.

     Range Resources Corp. and EQT Corp. surged more than 2.4 percent as energy shares advanced after fluctuating earlier in the day. Weight Watchers International Inc. plunged 13 percent as the Russell 2000 Index lost 0.5 percent.

     The Standard & Poor’s 500 Index fell less than 0.1 percent to 2,058.20 at 4 p.m. in New York. The gauge rose as much as 0.7 percent and dropped more than 0.6 percent during the session. The Dow Jones Industrial Average added 9.92 points, or less than 0.1 percent, to 17,832.99. More than 5.3 billion shares changed hands on U.S. exchanges, 23 percent below the three-month average.

     “Investors are looking for validation that the economy is, in fact, as strong as advertised,” Peter Sorrentino, a Cincinnati-based fund manager at Huntington Asset Advisors Inc., which oversees $1.8 billion, said in a phone interview. “The market may struggle to find its footing here in the first couple of days until we get some more data points out.”

     The benchmark index fell on the last two days of 2014, giving it a monthly decline of 0.4 percent for the first December drop since 2007. That trimmed its third straight annual gain to 11 percent.

     Stocks fell earlier today after a report showed manufacturing in the U.S. cooled in December, settling into a more sustainable pace of growth as the year drew to a close.

     The Institute for Supply Management’s factory index dropped to a six-month low of 55.5 from 58.7 in November, a report from the Tempe, Arizona-based group showed. The reading in October matched a three-year high.

     “The data failed to meet early expectations but is still trending in the right direction,” Eric Wiegand, a senior portfolio manager at U.S. Bank Wealth Management in New York, which oversees $120 billion, said by phone. “We expect more volatility but as you look around the globe we’re still in expansionary territory and that’s not the case with our major trading partners.”

     Separate data showed construction spending fell in November for the first time since June.

     In the euro area, manufacturing expanded less than initially estimated. European Central Bank President Mario Draghi said he can’t exclude the risk of deflation in the euro area, in a sign that the likelihood of large-scale quantitative easing is increasing.

     A Chinese manufacturing gauge slipped to the lowest level in 18 months, adding pressure on policy makers to do more to support economic growth, according to data released yesterday by the statistics bureau and the China Federation of Logistics and Purchasing in Beijing.

     Shares rallied last year as accelerating growth fueled optimism in the U.S. economy and an accommodative Federal Reserve policy sent risk-seeking investors into equities.

     The S&P 500, Dow and Russell 2000 Index climbed to records last month, while the Nasdaq Composite Index reached its highest level since March 2000. The S&P 500 closed at an all-time high on Dec. 29 for the 53rd time of the year, and the Dow reached 18,000 last week.

     In the biggest bull market since the 1990s, the S&P 500 overcame five separate declines of 4 percent or more in 2014. The gauge never fell more than three straight days, a first in data compiled by Bloomberg going back to 2000. It has jumped more than 200 percent from its low in March 2009, including its biggest annual rally since 1997 in 2013.

     The Chicago Board Options Exchange Volatility Index, a measure of demand for options on the S&P 500, fell 7.3 percent to 17.79 today, after reaching a two-week high Wednesday.

     Six of 10 major groups in the S&P 500 advanced, with utilities, phone and energy companies rising the most. Industrial, consumer and technology companies retreated.

     Energy companies fluctuated with the price of crude before climbing at the end of the day. West Texas Intermediate fell 1.1 percent after rallying almost 3.5 percent earlier. Range Resources added 3.7 percent, the most in the S&P 500, and EQT surged 2.4 percent.

     Bed Bath & Beyond rose 0.7 percent after Canaccord Genuity upgraded the shares to buy from hold. The company “turned in a strong showing” over the holiday season, based on store visits and surveys, Canaccord Genuity analyst Laura Champine wrote in a note.

     International Business Machines Corp. added 1 percent. The company was the worst performer in the Dow for a second straight year in 2014, with a slump of 14 percent.

     Weight Watchers plunged 13 percent, the most since February, after more than 4,000 bearish options changed hands Wednesday and the stock was among the most heavily shorted last month. The company, founded in 1963, has struggled to compete with new weight-loss apps and services, contributing to seven straight quarters of declining sales.

     Weight-loss and vitamin retailers slumped, with Vitamin Shoppe Inc., Nutrisystem Inc. and GNC Holdings Inc. dropping at least 1.2 percent.

     Technology companies dropped 0.2 percent, after tumbling 1.2 percent on Wednesday. Apple slid 1 percent, extending its loss for the week to 4.1 percent.

     An S&P index of homebuilders lost 1 percent. Disappointing November construction spending suggests some economists may revise down fourth-quarter gross domestic product estimates, Christophe Barraud, Market Securities LLP chief economist, said in a note to Bloomberg First Word.

 

Have a wonderful evening everyone!

 

Be magnificent!

 

“New Year’s Day. A fresh start. A new chapter in life waiting to be written. New questions to be asked, embraced, and loved. Answers to be discovered and then lived in this transformative year of delight and self-discovery. Today carve out a quiet interlude for yourself in which to dream, pen in hand. Only dreams give birth to change.” Sarah Ban Breathnach

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY
Fishermen unload their catch in the port of Sabang in Pulah Weh, Indonesia. ‘The fishermen often unload their catch before dawn. It’s a messy, chaotic flurry of activity that smells strongly of fish and is a blast to watch.’ Ann Hermes

 Iranian laugh instructor Mahro Sameni (wearing red scarf) leads a laughing class in Tehran, Iran. More than 250 Iranian instructors have been trained in ‘laughing yoga’ in the past decade, and work privately and in venues such as state banks, health clinics, and addiction centers to ease the modern stresses of urban living.  Scott Peterson

Market Closes for December 29th, 2014     

Market Index	Close	Change
Dow Jones	18038.23	-15.48
		-0.09%
S&P 500	2090.57	+1.80   +0.09%
NASDAQ	4806.910	+0.051
		—
TSX	14663.92	+54.67
		+0.37%

International Markets

Market Index	Close	Change
NIKKEI	17729.84	-89.12
		-0.50%
HANG SENG	23773.18	+423.84
		+1.82%
SENSEX	27395.73	+153.95
		+0.57%
FTSE 100	6633.51	+23.58
		+0.36%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.834	1.898
CND. 30 Year Bond	2.382	2.422
U.S.    10 Year Bond	2.2021	2.2605
U.S. 30 Year Bond	2.7728	2.8524

Currencies

BOC Close	Today	Previous
Canadian $	0.85871	0.86062
US $	1.16454	1.16195
Euro Rate 1 Euro=		Inverse
Canadian $	1.41561	0.70641
US $	1.21564	0.82262

Commodities

Gold	Close	Previous
London Gold Fix	1185.50	1175.75
Oil	Close	Previous
WTI Crude Future	53.61	56.90

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for a third day, extending a three-week high, as banks posted the longest winning streak in more than a year while energy producers pared gains as crude slumped to a five-year low.

     Bank of Nova Scotia and Canadian Western Bank climbed at least 1 percent to pace gains among financial stocks. TransCanada Corp. rose 1.4 percent after buying a solar power plant from Canadian Solar Inc. for C$60 million ($51.6 million).  Bombardier Inc. gained 1.5 percent after winning an order to sell 42 double-deck trains to France for about $484 million.  BlackBerry Ltd. added 2.1 percent to C$12.67, a six-week high.

     The Standard & Poor’s/TSX Composite Index rose 54.67 points, or 0.4 percent, to 14,663.92 at 4 p.m. in Toronto. The index has gained 7.7 percent for the year, on pace for a third straight annual advance, the longest streak since 2007.

     Canadian Western Bank added 1.3 percent to C$33.21 and Bank of Nova Scotia rallied 1 percent to C$66.96. Nine of 10 industries increased in the S&P/TSX on trading volume that was 50 percent lower than the 30-day average today.

     The S&P/TSX Banks Index increased 0.7 percent for a ninth straight day of gains, the longest streak since October 2013. Toronto-Dominion Bank, the nation’s largest lender, added 0.6 percent to C$55.70.

     Bellatrix Exploration Ltd. rose 3.9 percent to C$4.25 as energy stocks increased 0.3 percent, paring an earlier gain of as much as 1.6 percent. West Texas Intermediate crude sank 2.1 percent in New York to the lowest level in more than five years, erasing an advance spurred by an escalating conflict in Libya.

     Financials, raw-materials and energy stocks are the three biggest laggards in Canada for the first time since at least 1988, fueling concerns about the nation’s economic recovery as crude prices plunged into a bear market this year, gold fluctuated and bank earnings slowed.

     The three groups, which account for about two-thirds of the S&P/TSX, are the worst performers among 10 groups, led by a 7.4 percent drop in energy shares.

     Greek Prime Minister Antonis Samaras failed in a third and final attempt to get his presidential candidate, Stavros Dimas, confirmed. The vote will trigger a general election in late January or early February, a few weeks before the nation’s 240- billion-euro ($293 billion) bailout expires.

US

By Joseph Ciolli and Inyoung Hwang

     (Bloomberg) — The Standard & Poor’s 500 Index rose, approaching a third straight yearly advance and extending gains after equity gauges climbed past milestones last week.

     Gilead Sciences Inc. increased 3.7 percent as biotechnology shares rebounded for a third day. Energy companies rose despite a drop in crude prices. Losses in Microsoft Corp., Intel Corp. and International Business Machines Corp. weighed down the Dow Jones Industrial Average.

     The S&P 500 rose 0.1 percent to 2,090.57 at 4 p.m. in New York. The Dow fell 15.48 points, or 0.1 percent, to 18,038.23.  The Russell 2000 Index gained 0.3 percent. More than 4.7 billion shares changed hands on U.S. exchanges, 32 percent below the three-month average. Volume for U.S. exchanges on Dec. 26 was the lowest this year for a full day of trading.

     Equities are approaching the end of the year at record levels, bolstered by the fastest expansion for the American economy in more than a decade. The Federal Reserve’s pledge on Dec. 17 to be patient in raising interest rates helped the S&P 500 fully recoup a 5 percent loss in the first half of the month.

    “There’s lots for investors to digest going into 2015,”said James Buckley, who helps oversee about $47 billion as a portfolio manager at Baring Asset Management Ltd. in London. “The focus will likely be on more macro-type events immediately. The U.S. economy is the one real bright spot. That economy is doing phenomenally well. That in itself is reason to be optimistic.”

     The S&P 500 has gained 13 percent this year, while the Dow is up 8.8 percent in 2014 after climbing above 18,000 for the first time last week. The Russell 2000 of small-cap stocks climbed to an all-time high on Dec. 26. The Nasdaq Composite Index reached its highest since March 2000 that same day, closing about 5 percent below its record.

     U.S. stocks have overcome upheavals in 2014 that threatened to derail a bull market in its sixth year, ranging from violence in the Ukraine to an Ebola outbreak and a bear market in oil prices. The S&P 500’s worst retreat was only 7.4 percent, and the gauge recovered from each of its declines of 4 percent or more within one month.

     The S&P 500 has not seen a four-day decline since December 2013. The benchmark gauge has declined for four consecutive trading sessions at least once every year since at least 2000.

     The Chicago Board Options Exchange Volatility Index, a measure of demand for options on the S&P 500, dropped 12 percent last week. It gained 3.9 percent to 15.06 today. The gauge, also known as the VIX, has tumbled 36 percent from a two-month high on Dec. 16.

     The S&P 500 trades at 18.5 times profits, the highest level since 2010 and compares with the average of 16.3 over the past decade.

     Analysts forecast earnings for the S&P 500 to increase 6.4 percent next year. Consumer-discretionary, technology and raw- materials companies are expected to post the fastest growth, with profits rising at least 13 percent, estimates compiled by Bloomberg show.

     Stock futures slumped earlier today after Greek Prime Minister Antonis Samaras failed in his third and final attempt to persuade parliament to back his candidate for head of state. Concern that anti-austerity party Syriza will win snap elections next month roiled stocks in Athens, as such an outcome risks the European Union’s common currency and the start of the European Central Bank’s bond-buying plan.

     “We’re seeing if people will try to add to performance before the year is over,” Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview. “There might be some trading around the edges by people looking for a little more performance. It’s more of a stock-picker way of looking at it at this point.”

     Economic reports this week may show consumer confidence climbed in December, pending home sales rose in November, while an Institute for Supply Management index of manufacturing slipped this month, according to economists surveyed by Bloomberg.

     Six out of 10 major group in the S&P 500 increased today. Utilities and consumer-discretionary companies gained the most, while technology and phone shares had the worst performance.

     Gilead Sciences Inc. rose 3.7 percent as biotechnology shares gained for a third day after the biggest two-day drop since February 2012.

     Biotech shares slumped last week amid concern health insurers and companies that manage patient’s drug benefits will put new pressure on how much the industry can charge for breakthrough treatments. The selloff was prompted by Express Scripts Holding Co.’s announcement that it would block its U.S. patients from getting Gilead’s $1,100-a-pill hepatitis C medicine.

     Energy shares rose 0.3 percent, even as oil erased an early rally. Crude reached a five-year low on speculation that a global supply glut that’s driven crude into a bear market will continue through the first half of 2015.

     IBM, Intel, Microsoft and Red Hat Inc. lost more than 0.9 percent. While Red Hat, Intel and Microsoft have rallied at least 25 percent this year, IBM is down 14 percent for 2014, heading for the worst performance in the Dow for a second straight year.

Have a wonderful evening everyone!

Be magnificent!

 

“ True happiness… is not attained through self-gratification, but through fidelity to a worthy purpose”.   Helen Keller

As ever,
 
Leyla
 

“Imagine all the people living life in peace. You may say I’m a dreamer, but I’m not the only one. I hope someday you’ll join us, and the world will be as one”. John Lennon
 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY
 

Wishing everyone a very Merry Christmas and a very joyous holiday season!!

Market Closes for December 23^rd, 2014     

Market Index	Close	Change
Dow Jones	18024.17	+64.73
		+0.36%
S&P 500	2082.17	+3.63   +0.17%
NASDAQ	4765.426	-15.998   -0.33%
TSX	14594.03	+161.65
		+1.12%

International Markets

Market Index	Close	Change
NIKKEI	17635.14	+13.74
		+0.08%
HANG SENG	23333.69	-74.88
		-0.32%
SENSEX	27506.46	-195.33
		-0.71%
FTSE 100	6598.18	+21.44
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.898	1.792
CND. 30 Year Bond	2.422	2.329
U.S.    10 Year Bond	2.2605	2.1583
U.S. 30 Year Bond	2.8524	2.7430

Currencies

BOC Close	Today	Previous
Canadian $	0.86062	0.85928
US $	1.16195	1.16376
Euro Rate 1 Euro=		Inverse
Canadian $	1.41440	0.70701
US $	1.21726	0.82151

Commodities

Gold	Close	Previous
London Gold Fix	1175.75	1195.25
Oil	Close	Previous
WTI Crude Future	56.90	54.96

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose to a three-week high as energy shares rallied on higher oil prices and data showed the U.S. and Canadian economies grew faster than forecast last quarter.

     Pacific Rubiales Energy Corp. jumped 6.1 percent after a well test found offshore oil. Veresen Inc. gained 15 percent, its biggest-ever advance, after agreeing to a joint venture with KKR & Co. to expand pipeline and natural gas infrastructure in British Columbia. MEG Energy Corp. rose 5 percent as crude advanced in New York. Teck Resources Ltd., the nation’s largest diversified miner, jumped 4.2 percent.

     The Standard & Poor’s/TSX Composite Index rose 161.65 points, or 1.1 percent, to 14,594.03 at 4 p.m. in Toronto, the highest close since Dec. 3. The index has gained 7.1 percent for the year, on pace for a third straight annual advance, the longest streak since 2007.

     Nine of the 10 main industries in the S&P/TSX advanced on trading 35 percent lower than the 30-day average today.

     Manulife Financial Corp. climbed 1.2 percent to C$22.41, a two-week high, after agreeing to buy New York Life Insurance Co.’s retirement plan services business in a deal that will boost the insurer’s assets under administration by about $50 billion. Terms of the deal were not disclosed.

     Energy shares in the index climbed 2.2 percent to the highest since Dec. 3. West Texas Intermediate oil advanced 3.4 percent in New York while London Brent climbed 2.3 percent.

     U.S. gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003, as consumers and businesses spent more than previously estimated.

     Canada’s economy rose 0.3 percent in October on gains in the public sector and commodity production, ahead of economists’ estimates. The highest forecast was 0.2 percent.

     The S&P/TSX surged 5.4 percent last week, the most since July 2009, as equities worldwide climbed as oil prices stabilized and Federal Reserve Chair Janet Yellen said the U.S. central bank will probably hold rates near zero at least through the first quarter.

US

By Joseph Ciolli and Callie Bost

     (Bloomberg) — The Dow Jones Industrial Average rose above 18,000 for the first time as faster-than-forecast growth in gross domestic product boosted confidence in the economy and overshadowed declines in health-care companies.

     The Dow average added 64.73 points, or 0.4 percent, to a record 18,024.17 at 4 p.m. in New York. The Standard & Poor’s 500 Index rose 0.2 percent to 2,082.17, also reaching an all- time high. Both gauges have advanced five straight days. The Nasdaq Biotechnology Index slipped 4.6 percent for the biggest decline since April.

     “The market was roaring yesterday, and going into the end of the year it keeps pushing higher,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said in a phone interview. “The Fed is part of the fueling of everything, and you have to couple that with the year-end push.”

     It’s been 172 days since the Dow closed above 17,000 on July 3, data compiled by Bloomberg show. That’s the fifth- fastest trip between thousands, with the record being 35 days to 11,000 in May 1999. It took the index almost 5,200 days to go from 1,000 to 2,000 between 1972 and 1987, according to Howard Silverblatt, an index analyst at the New York-based S&P Dow Jones Indices.

     The Dow closed at an eight-month low on Oct. 16 before rallying more than 1,882 points, or 12 percent, to to top 18,000.

     The gauge has risen 175 percent during the five-year bull market that began in March 2009, propelled by better-than- estimated corporate results and three rounds of Fed bond purchases. The S&P 500 has more than tripled in that time.

     Technology companies have had some of the biggest gains in the Dow this year, with Intel Corp. rising more than 44 percent and Microsoft Corp. jumping 29 percent. Consumer companies such as Home Depot Inc., Walt Disney Co. and Nike Inc. have also risen at least 22 percent to lead the 30-stock gauge’s advance.

     Nike, UnitedHealth Group Inc., Visa Inc., Home Depot and Intel have paced gains during the gauge’s run to 18,000 in the second half of the year, with each rallying more than 20 percent from July 3. Caterpillar Inc., International Business Machines Corp. and Chevron Corp. have been the worst performers, with slumps of more than 14 percent in that period.

     The industrial gauge has climbed 8.7 percent this year, almost three times more than the Russell 2000 Index of small-cap companies.

     “I think it’s a testament to where the economy is,” John Canally, a Boston-based economic strategist at LPL Financial Corp., which oversees $464.8 billion, said in a phone interview. “The underlying trend in the economy is still there, we’re still in the middle of the business cycle  and earnings look solid. That’s adding up to a lot of people saying ‘hey, I’m missing this, I better get involved in the stock market.’”

     Equity benchmarks have rallied to records, with the S&P 500 rebounding 12 percent from a low in October, amid speculation the U.S. economy is strong enough to withstand a slowdown overseas.

     Data today showed the world’s largest economy expanded at the fastest pace in more than a decade, as U.S. consumers and businesses spent more than previously estimated.

     Gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003, and up from a previously estimated 3.9 percent, revised figures from the Commerce Department showed today in Washington. The median forecast of 75 economists surveyed by Bloomberg projected a 4.3 percent increase.

     Consumer spending rose more than forecast in November as incomes increased and gasoline prices dropped, indicating the biggest part of the U.S. economy is strengthening as the year ends.

     Stocks started to rally last week, with the S&P soaring the most in four days since 2011, after the Fed said it will be patient on the timing of a rate increase even as U.S. growth shows signs of accelerating. Chair Janet Yellen said any spillover from the situation in Russia is likely to be small, while the central bank’s policy statement didn’t mention turmoil sparked by tumbling oil prices.

     The S&P 500 is now up 0.7 percent for December and 13 percent this year.

     “Part of the rebound we’re now witnessing has to do with the realization that the selloff was overdone,” said David Wartenweiler, chief investment officer at Habib Bank AG in Zurich. “The U.S. economy is really on track to continue to grow at a healthy pace. It’s also important that the Fed said they’re going to increase interest rates but be patient.”

     The Chicago Board Options Exchange Volatility Index fell 3 percent to 14.8. The gauge known as the VIX has dropped five straight days, its longest streak in a month.

     Nine out of 10 industries in the S&P 500 rose today, with health-care companies posting the only losses as a group, tumbling 2.2 percent.

     The Nasdaq Biotechnology Index fell for a second day, with losses beginning after a drug-benefit manager blocked Gilead Sciences Inc.’s $1,000 hepatitis treatment.

     Gilead dropped 3.7 percent today, after tumbling 14 percent yesterday. Biogen Idec Inc. lost 4.7 percent and Celgene Corp. slipped 6.5 percent.

     Health companies accounted for the biggest losses in the Dow as Johnson & Johnson, Pfizer Inc. and Merck & Co. fell more than 2 percent.

     “Health-care is definitely underperforming today, specifically in biotechnology names,” Joe Bell, a Cincinnati- based senior equity analyst at Schaeffer’s Investment Research Inc., said by phone. “Gilead is really dragging down the biotechnology sector.”

 

Have a wonderful evening everyone!

 

Be magnificent!

 

”Christmas is the spirit of giving without a thought of getting. It is happiness because we see joy in people. It is forgetting self and finding time for others. It is discarding the meaningless and stressing the true values.”Thomas S. Monson

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7