Author: Carolann

Dear Friends,

Tangents:

ALMOST LIKE THE BLUES

I saw some people starving There was murder, there was rape Their villages were burning They were trying to escape I couldn’t meet their glances I was staring at my shoes It was acid, it was tragic It was almost like the blues

I have to die a little Between each murderous thought And when I’m finished thinking I have to die a lot There’s torture and there’s killing There’s all my bad reviews The war, the children missing Lord, it’s almost like the blues

I let my heart get frozen To keep away the rot My father said I’m chosen My mother said I’m not I listened to their story Of the Gypsies and the Jews It was good,  it wasn’t boring It was almost like the blues

There is no G-d in heaven And there is no Hell below So says the great professor Of all there is to know But I’ve had the invitation That a sinner can’t refuse And it’s almost like salvation It’s almost like the blues

         -Leonard Cohen

I found an easy listening radio station on SiriusXM Satellite radio that I love listening to in the car.  It is Ch. 31, The Coffee House, and it features just beautiful acoustic singer/songwriters – puts you in a much better mood than listening to the news – the blues – by the time you reach your destination.  Check it out.

On this date in 1879, Thomas Edison invented a commercially viable electric light bulb in a Menlo Park, N.J. laboratory, the first test of the light bulb lasted 13.5 hours.

QUOTE OF THE DAY

Tonight, fashion has lost not only a force but a friend in #OscardelaRenta. People pass. Impacts last forever. RIP.

Photographer Patrick McMullan tweeted on the death of Oscar de la Renta, a renowned American fashion designer famed for his glamorous red carpet gowns and smart suits for ladies who lunch.

PHOTOS OF THE DAY At a warehouse in Berlin, a journalist tosses a balloon into the air as he poses for his TV crew among stands for balloons that will be used in the installation ‘Lichtgrenze’ (Border of Light.) A part of the inner city of Berlin will be temporarily divided from November 7 to 9 with a light installation featuring 8000 luminous white balloons to commemorate the 25th anniversary of the fall of the Berlin Wall. Fabrizio Bensch/Reuters Raindrops cover a fallen autumn leaf in Vertou, France. Stephane Mahe/Reuters  Raindrops cover a fallen autumn leaf in Vertou, France. Stephane Mahe/Reuters People stand around ‘Umbrellas,’ a sculpture by Giorgos Zogolopoulos, as it is illuminated in pink light to mark Breast Cancer Awareness Month in Thessaloniki, Greece. Alexandros Avramidis/Reuters

Market Closes for October 21^st, 2014  

Market Index	Close	Change
Dow Jones	16614.81	+215.14
		+1.31%
S&P 500	1941.28	+37.27   +1.96%
NASDAQ	4419.480	+103.406   +2.40%
TSX	14547.71	+209.94
		+1.46%

International Markets

Market Index	Close	Change
NIKKEI	14804.28	-306.95
		-2.03%
HANG SENG	23088.58	+18.32
		+0.08%
SENSEX	26575.65	+145.80
		+0.55%
FTSE 100	6372.33	+105.26
		+1.68%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.966	1.934
CND. 30 Year Bond	2.541	2.520
U.S.    10 Year Bond	2.2217	2.1882
U.S. 30 Year Bond	2.9943	2.9631

Currencies

BOC Close	Today	Previous
Canadian $	0.89085	0.88607
US $	1.12253	1.12858
Euro Rate 1 Euro=		Inverse
Canadian $	1.42726	0.70064
US $	1.27148	0.78649

Commodities

Gold	Close	Previous
London Gold Fix	1248.69	1246.61
Oil	Close	Previous
WTI Crude Future	82.81	82.75

Market Commentary:

Canada

By Eric Lam

     Oct. 21 (Bloomberg) — Canadian stocks rose the most in more than a year, extending a rally to a fourth day, as commodity producers advanced after data showed China’s economy grew faster than forecast.

     RMP Energy Inc. and Surge Energy Inc. advanced at least 2.6 percent as energy shares rebounded for a fourth day. Canadian Pacific Railway Ltd. rose 1.3 percent after reporting an improving operating ratio. Air Canada soared 6.7 percent for a fourth day of gains.

     The Standard & Poor’s/TSX Composite Index jumped 209.94 points, or 1.5 percent, to 14,547.71 at 4 p.m. in Toronto, the biggest gain since July 2013. Canadian equities rallied as global stocks advanced on speculation the European Central Bank will boost stimulus and amid better-than-estimated corporate earnings in Europe and the U.S.

     The Canadian benchmark has rebounded 4.9 percent in the four days since slumping to an eight-month low on Oct. 15 after entering a correction. Trading volume today was 2.4 percent below the 30-day average, according to data compiled by Bloomberg.

     China’s gross domestic product rose 7.3 percent in the third quarter from a year earlier, exceeding the 7.2 percent median estimate of a Bloomberg News survey of analysts. It was also the slowest expansion since 2009.                           

     RMP Energy added 5.1 percent to C$6.59 and Surge Energy increased 2.6 percent to C$6.77. West Texas Intermediate and Brent crudes advanced after the China data signaling stronger fuel demand in the world’s second-biggest oil consuming country.

     The S&P/TSX Energy Index added 1.9 percent. The group has advanced 7.1 percent in four days after posting the longest losing streak since 1997.  Teck Resources Ltd., Canada’s largest diversified miner, increased 3.1 percent to C$18.07 and First Quantum Minerals Ltd. jumped 5.6 percent to C$19.80. Aluminum and copper prices advanced in London.

     Centerra Gold Inc. added 3.1 percent to C$5.73. Gold for December delivery climbed to a five-week high in New York, as traders pushed back estimates for when the U.S. Federal Reserve will raise interest rates and on concern the dollar will weaken.

     Canadian Pacific rallied 1.3 percent to C$224.58. The railroad’s operating ratio, an industry measure that compares expenses to revenue, improved 3.1 percentage points to 62.8 percent. A lower figure equals improving performance.     The S&P/TSX trades at 18.5 times reported earnings, down from a peak of 21 set in June, according to data compiled by Bloomberg.

US

By Namitha Jagadeesh and Oliver Renick

     Oct. 21 (Bloomberg) — U.S. stocks surged, sending the Standard & Poor’s 500 Index to its biggest gain in a year, as investors speculated the European Central Bank will boost economic stimulus and Apple Inc. forecast record sales.

     Apple advanced 2.7 percent, sending the Nasdaq 100 Index to its biggest rally since January 2013. Texas Instruments Inc. rose 5.3 percent and Harley-Davidson Inc. jumped 7.3 percent after reporting higher-than-estimated profit. Southwest Airlines Co. surged 5.3 percent as airlines led transportation stocks higher. Coca-Cola Co. fell 6 percent, the biggest drop in six years, after sales slumped.

     The S&P 500 climbed 2 percent to 1,941.28 at 4 p.m. in New York, its best gain since October 2013. The equity gauge is up 4.2 percent since Oct. 15 in the biggest four-day rally since January 2013. The Dow Jones Industrial Average climbed 215.14 points, or 1.3 percent, to 16,615 today. The Nasdaq 100 surged 2.6 percent, the most since January 2013, as about 7.2 billion shares traded hands in the U.S.      “We’re hearing about the ECB buying bonds,” Benjamin Dunn, president of Alpha Theory Advisors, which advises hedge funds with about $6 billion in assets, said in a phone interview from Crested Butte, Colorado. “The market’s a sugar addict and the sweet nectar of free money, any kind of incremental liquidity from a central bank, whether it’s Europe or China, is what the market’s looking for.”

     The ECB bought Italian covered bonds as it returned to the market for a second day under its asset purchase program, according to two people familiar with the matter. Debt issued by Intesa Sanpaolo SpA was included in the purchases, according to one of the people, who asked not to be identified because the information is private.

     The ECB entered the 2.6 trillion-euro ($3.3 trillion) covered bond market after President Mario Draghi unveiled plans last month to bolster companies’ and households’ access to financing. Draghi, who also included asset-backed securities in the program, intends to expand the bank’s balance sheet by as much as 1 trillion euros to stave off deflation in the euro area.

     U.S. stocks have rallied after St. Louis Federal Reserve Bank President James Bullard said on Oct. 16 that policy makers should consider delaying the end of bond purchases. He was the first Fed official to publicly suggest the central bank should extend its asset-purchase program when policy makers meet later this month.                      

     Bank of America Merrill Lynch strategists said in a report today that another 10 percent decline in U.S. stocks might spark speculation of a fourth round of quantitative easing from the Fed. That would mimic how the Fed acted following equity declines of 11 percent in 2010 and 16 percent in 2011.

     About 79 percent of S&P 500 companies that have reported quarterly results this season exceeded profit projections, while 61 percent beat revenue estimates. Profit for index members rose 5.9 percent in the third quarter and sales increased 4 percent, analysts projected. Broadcom Corp. and Yahoo! Inc. are among the 24 S&P 500 companies reporting today. Yahoo rallied 2.8 percent in late trading.

     “Now we can finally focus on earnings in the U.S.,” Kully Samra, who helps manage U.K. clients at Charles Schwab Corp. in London, said by phone. His firm oversees about $2.4 trillion globally. “Apple’s numbers were stunning, so that should help markets. So far, earnings numbers look OK.”

     The Chicago Board Options Exchange Volatility Index sank 13 percent to 16.08 for a fourth day of declines that has cut the gauge by 39 percent.                        

     All 10 of the S&P 500’s main groups advanced, led by a 2.9 percent rally among energy stocks as oil rose in New York and London.

     The Dow Jones Transportation Average surged 3.1 percent, boosted by gains in airline stocks. United Continental Holdings Inc. gained 4.7 percent and JetBlue Airways Corp. rose 2.9 percent.

     Apple gained 2.7 percent. The world’s most valuable company is the biggest by weighting in the S&P 500 and Nasdaq 100. Bigger-screen iPhones, refreshed and slimmer iPads and the introduction of the Apple Pay mobile-payments service are helping boost sales.

     Texas Instruments increased for the sixth straight session, adding 5.3 percent. The company forecast fourth-quarter profit and revenue that may exceed analysts’ estimates, as demand for chips used in cars, industrial equipment and mobile phone systems fueled sales growth.                                Encouraging releases also spurred shares of other companies. United Technologies Corp. added 0.5 percent after posting better-than-estimated earnings for the third quarter. Travelers Cos. advanced 1.1 percent as operating profit surpassed projections. Illumina Inc. rallied 9.2 percent after raising its annual profit projection, the most in a year.

     Harley-Davidson jumped 7.3 percent, the most since October 2012, after the biggest U.S. motorcycle maker reported third- quarter profit that topped analysts’ estimates.

     McDonald’s Corp. lost 0.6 percent. The world’s largest restaurant chain said third-quarter profit fell 30 percent as U.S. sales slumped for the fourth straight quarter. Global comparable-store sales will fall in October, Chief Executive Officer Don Thompson said in today’s statement.

     Coca-Cola tumbled 6 percent, the most since October 2008.  The company is struggling with sluggish international growth and mounting concerns over obesity and artificial sweeteners. Sales fell to $11.98 billion in the quarter from $12 billion a year earlier, Coca-Cola said. Analysts had estimated $12.1 billion on average, according to data compiled by Bloomberg.  

Have a wonderful evening everyone.

 

Be magnificent!

Humanity is not divided into airtight compartments

that inhibit going from one to the other.

And when one counts them in the thousands,

they will not be less linked one to the other.

Mahatma Gandhi

As ever,

 

Carolann

 

I always find it more difficult to say the things I mean than the things I don’t.

                                                        -W. Somerset Maugham, 1874-1965

 

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:

Had a wonderful time at the World Business Forum in NYC.  Many fascinating speakers again this year and lots of brilliant ideas about what the future holds. Managed to catch the amazing Matisse Cutouts exhibit at MOMA and also some of The New Yorker Festival.  One of the topics at the festival was Mapping the Brain which featured a panel of neuroscientists talking about the amazing progress being made in this task through collaboration (instigated by Bill Clinton) by many different disciplines similar to how the human genome was mapped. 

Saw some terrific theatre too – Mia Farrow & Brian Dennehy in Love Letters – incredible- and The Curious Incident of the Dog in the Night (just opened and not to be missed). Ditto for Disgraced. White Alba truffles arrived in the city – Del Posto has them on offer among many other restaurants.

Lots to catch up on today. Markets are behaving now that I’ve returned ha! ha! Actually it’s Apple – just reported earnings – excellent numbers!  Talk soon.

PHOTOS OF THE DAY

A couple looks up at the autumn colors as they walk through trees at Sheffield Park Garden near Haywards Heath in southern England. Luke MacGregor/Reuters

The rising sun paints a burnt orange sky behind a group of leafless trees in Paint Township, Pa. Todd Berkey/The Tribune-Democrat/AP

Market Closes for October 20^th, 2014    

Market Index	Close	Change
Dow Jones	16399.67	+19.26
		+0.12%
S&P 500	1903.99	+17.23   +0.91%
NASDAQ	4316.074	+57.636   +1.35%
TSX	14341.28	+113.60
		+0.80%

International Markets

Market Index	Close	Change
NIKKEI	15111.23	+578.72
		+3.98%
HANG SENG	23070.26	+47.05
		+0.20%
SENSEX	26429.85	+321.32
		+1.23%
FTSE 100	6267.07	-43.22
		-0.68%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.934	1.952
CND. 30 Year Bond	2.520	2.520
U.S.    10 Year Bond	2.1882	2.1936
U.S. 30 Year Bond	2.9631	2.9678

Currencies

BOC Close	Today	Previous
Canadian $	0.88607	0.88687
US $	1.12858	1.12781
Euro Rate 1 Euro=		Inverse
Canadian $	1.44456	0.69225
US $	1.27998	0.78126

Commodities

Gold	Close	Previous
London Gold Fix	1246.61	1261.75
Oil	Close	Previous
WTI Crude Future	82.75	82.75

Market Commentary:

Canada

By Eric Lam

     Oct. 20 (Bloomberg) — Canadian stocks capped the biggest three-day advance in two years as Valeant Pharmaceuticals International Inc. rallied after boosting its earnings forecast and bank shares advanced.

     Valeant climbed 3.9 percent after also reporting better- than-expected earnings. Toronto-Dominion Bank and Royal Bank of Canada, the nation’s largest lenders, advanced at least 0.4 percent. Canadian Pacific Railway Ltd. slipped 1.5 percent after ending merger talks with CSX Corp.

     The Standard & Poor’s/TSX Composite Index rose 110.09 points, or 0.8 percent, to 14,337.77 at 4 p.m. in Toronto. The benchmark equity gauge has rallied 3.4 percent in three trading days, the most since July 2012. It ended little changed last week to snap a six-week losing streak, the longest stretch of losses in more than two years.

     The index has fallen 8.4 percent since Sept. 3, trimming its advance for the year to 5.3 percent. Trading volume today was 19 percent lower than the 30-day average, according to data compiled by Bloomberg.

     Agnico Eagle Mines Ltd. rose 5.8 percent to C$34.22 and B2Gold Corp. increased 5.6 percent to C$2.44 as raw-materials stocks increased 2 percent as a group. All 10 industries in the S&P/TSX advanced.

     Gold for December delivery climbed 0.5 percent to $1,244.70 an ounce in New York as the U.S. dollar weakened, boosting demand for the metal.

     Canadian Pacific lost 1.5 percent to C$221.65. Canada’s second-largest railroad approached CSX with a proposal for a coast-to-coast tie-up to improve service and boost competition. CSX, the largest railroad in the eastern U.S., rejected the proposal and no further talks are planned.

     Pacific Rubiales Energy Corp. surged 11 percent to C$17.72. The S&P/TSX Energy Index added 0.6 percent, erasing an earlier loss. The group has advanced for three days after posting the longest losing streak since 1997. The energy gauge gained 5.1 percent in the past three days, the most since July 2012.

     Niko Resources Ltd. plunged to 33 Canadian cents a share from 73 cents, the biggest percentage drop since 1993, after the government of India revised its domestic gas price policy.

     Brent crude fell 0.9 percent in London to $85.40, a level that’s prompting speculation OPEC will respond by cutting supply. West Texas Intermediate was little-changed.

     The S&P/TSX trades at 18.4 times reported earnings, down from a peak of 21 set in June, according to data compiled by Bloomberg.

US

By James Herron and Callie Bost

     Oct. 20 (Bloomberg) — The Standard & Poor’s 500 Index rose for a third day, while European stocks retreated. Apple Inc. climbed in extended trading after posting earnings, while gold advanced and U.S. crude oil reversed losses.

     The S&P 500 added 0.9 percent to 1,904.01 by 4 p.m. in New York, while Apple rose 1.1 percent after markets closed. The Dow Jones Industrial Average ended the day up 0.1 percent as a slide in International Business Machines Corp. limited gains. The Stoxx Europe 600 Index lost 0.5 percent. Ten-year U.S. Treasury yields were little changed at 2.19 percent after earlier slipping to as low as 2.16 percent. Gold climbed 0.5 percent. Oil was at $82.71 after earlier sliding 1.5 percent.

     About $4.3 trillion has been wiped from the value of global equities over the past four weeks on concern global economic growth is slowing. The European Central Bank started purchases of covered bonds today in an effort to stimulate the region’s economy, according to three people familiar with the matter. Chinese expansion will slow to about 4 percent annually after 2020 following decades of rapid growth, the Conference Board said before gross domestic product data due tomorrow.

     “In the U.S., we’re coming into the real heart of earnings season,” Bill Stone, chief investment strategist at PNC Wealth Management, said in a phone interview. He helps oversee $132 billion. “The bigger picture could be soothed with a decent earnings season, and so far, so good, a few individual names aside like IBM. The bigger picture is that I’m hopeful we’ll see the fundamentals in the U.S. are still attractive.”                        

     Shares of Apple climbed to $100.75 by 4:56 p.m. in New York, after the company projected revenue for the holiday quarter that exceeded the average analyst estimate. The Cupertino, California-based company’s fiscal fourth quarter results also beat projections, with net income rising to $1.42 a share, compared with the $1.30 a share predicted by analysts.

     Apple said new larger-screen iPhones will help boost sales by at least 10 percent during the October-through December period, according to a statement.

     Texas Instruments Inc., a semiconductor maker, rose 2.5 percent in after-hours trading after forecasting fourth-quarter profit and revenue that may exceed analysts’ estimates.

     Profit for S&P 500 companies probably rose 5.9 percent in the third quarter — a forecast that’s been revised upward from an increase of 4.8 percent as of Oct. 10 — and sales increased 4 percent, according to analysts’ projections compiled by Bloomberg.

     “The state of corporate earnings in the U.S. is on solid footing,” Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York, wrote in a report today.

     IBM shares fell 7.1 percent after the company ditched its five-year profit goal amid a struggle to transform quickly enough to cope with an industrywide shift to the cloud-computing era. IBM, which accounts for 7.8 percent of the price-weighted Dow, shaved 84 points off the index to trim its advance to 19 points even as 24 of its 30 stocks rose.

     Consumer stocks including Hasbro Inc. and Lennar Corp. rose at least 3.5 percent to pace gains in that group. CSX Corp. dropped 1 percent after merger talks with Canadian Pacific Railway Ltd. ended.

     The S&P 500 rallied following a four-week decline, its longest stretch of losses since August 2011. The gauge is down 5.3 percent from a record high reached in September.

     European shares fell after SAP SE cut its profit forecast and Royal Philips NV earnings missed analysts’ estimates. Fourteen of the 19 industry groups in the Stoxx 600 dropped. The gauge has fallen for four weeks, the longest slump since June 2013.                        

     SAP retreated 5.8 percent after cutting its full-year earnings while Royal Philips slid 3.7 percent after third- quarter sales and profit missed analysts’ estimates. Nutreco NV jumped 39 percent after SHV Holdings NV agreed to buy the fish- feed maker.

     Tesco Plc added 2.7 percent after the London-based Times said that private equity firms may be interested in acquiring its Asian business. Adidas AG rose 3.6 percent after the Wall Street Journal said a group of investors is planning to bid about 1.7 billion euros ($2.2 billion) for its Reebok unit.

     The MSCI All-Country World Index climbed 0.7 percent for a second day of gains, while MSCI’s Asia Pacific index gained 2.2 percent, rebounding after a six weekly declines to advance the most in more than two years. The MSCI Emerging Markets Index climbed 0.5 percent. Foreign investors bought 28 billion won more shares than they sold on South Korea’s Kospi Index today, the first net inflows since Sept. 30.

     The People’s Bank of China is providing funds to joint- stock banks to help them prepare for year-end liquidity needs, a government official familiar with the matter said Oct. 17, asking not to be identified because there hasn’t been an official announcement. The liquidity injection came before the start of a Communist Party meeting today and tomorrow’s GDP data.

     Government bonds from Italy and Spain fell, extending a selloff from last week. Italy’s 10-year rate climbed 10 basis points, or 0.10 percentage point, to 2.60 percent after increasing 17 basis points last week. Spain’s debt rose nine basis points to 2.26 percent.

     The ECB bought short-dated notes from Societe Generale SA and BNP Paribas SA, according to two people familiar with the matter, who asked not to be identified because the information is private. An ECB spokesman confirmed that purchases started today. Officials at SocGen and BNP weren’t immediately available to comment on the transactions.                           

     “From today we will begin to know how aggressive the ECB will be in bidding for bonds,” said Agustin Martin, head of European credit research at Banco Bilbao Vizcaya Argentaria SA in London.

     Gold climbed for the first time in three days, with futures for December delivery rising 0.5 percent to $1,244.70 an ounce. U.K. natural gas dropped for a second day. Ukraine will have natural gas for the winter after agreeing to pay $385 per thousand cubic meters of fuel from Russia until March 31, Ukraine President Petro Poroshenko said. Russia pipes about 15 percent of the European Union’s natural gas needs through Ukraine.

     The ruble weakened 0.8 percent against to 40.9616 per dollar, after capping its sixth weekly decline Oct. 17. Russia has spent more than $13 billion to stem the currency’s slump this month amid a bear market in oil, the nation’s main export earner, and as sanctions over its involvement in the Ukraine conflict worsened a dollar shortage.

     Russia’s foreign minister said his country will refuse to accept conditions to end the sanctions after talks in Italy failed to produce a breakthrough to bolster a truce in the eastern Ukrainian conflict. Russia, the world’s biggest energy exporter, has been told to comply with various criteria before the U.S. and its allies revoke the limitations, Sergei Lavrov said in the transcript of an NTV interview posted on the ministry’s website yesterday.

     Russia’s credit rating was cut last week by one step to Baa2, the second-lowest investment grade, a with a negative outlook by Moody’s Investors Service, which cited sluggish growth prospects and the erosion of reserves.

     West Texas Intermediate crude ended the U.S. session down 0.1 percent after sinking 3.6 percent last week. Brent crude fell 1 percent to $85.33 per barrel in London. Both oil types are trading in bear markets amid concern global crude supplies are exceeding demand.

 

Have a wonderful evening everyone.

 

Be magnificent!

I have found that life persists in the midst of destruction

and therefore there must be a higher law than that of destruction.

Only under that law would a well-ordered society

be intelligible and live worth living.

And if that is the law of life,

we have to work it out in daily life.

Mahatma Gandhi

 

As ever,
 

Carolann

 

In nature, there are neither rewards nor punishments – there are consequences.

                                                                 -Robert G. Ingersoll, 1833-1899

 

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 today, I will be writing the newsletter on her behalf.

Photos of the Day

Brokers monitor stock prices from their booths during a trading session at the Karachi Stock Exchange in Pakistan.

Engineers make their way down the north leg of the Gateway Arch in St. Louis, Mo., as they attempt to get samples of staining on the aging monument. The National Park service is hoping to sample the stains and figure out what caused them so they can be removed.

Market Closes for October 16^th, 2014    

Market Index	Close	Change
Dow Jones	16117.24	-24.50
		-0.15%
S&P 500	1862.76	+0.27   +0.01%
NASDAQ	4217.391	+2.073   +.05%
TSX	14052.97	+183.09
		-1.32%

International Markets

Market Index	Close	Change
NIKKEI	14738.38	-335.14
		-2.22%
HANG SENG	22900.94	-239.11
		-1.03%
SENSEX	25999.34	-349.99
		-1.33%
FTSE 100	6195.91	-15.73
		-0.25

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.1524	1.919
CND. 30 Year Bond	2.9353	2.467
U.S.    10 Year Bond	1.926	2.1358
U.S. 30 Year Bond	2.492	2.9176

Currencies

BOC Close	Today	Previous
Canadian $	0.88784	0.88776
US $	1.12633	1.12643
Euro Rate 1 Euro=		Inverse
Canadian $	1.44209	0.69344
US $	1.28034	0.78104

Commodities

Gold	Close	Previous
London Gold Fix	1238.52	1241.77
Oil	Close	Previous
WTI Crude Future	82.70	81.78

Market Commentary:

Canada

By Oliver Renick and Eric Lam

     Oct. 16 (Bloomberg) — Canadian stocks rallied the most in a year, rebounding from a four-day selloff, as energy stocks surged on speculation recent losses were overdone. Parex Resources Inc. jumped 8.4 percent after TD Securities recommended buying the shares. Athabasca Oil Corp. and ARC Resources Ltd gained at least 6.7 percent as energy stocks surged the most in three years. Westport Innovations Inc. jumped 14 percent. The Standard & Poor’s/TSX Composite Index climbed 1.3 percent to 14,052.97 at 4 p.m. in Toronto, the biggest advance since July 2013.

     “People are seeing really deep value in the energy and mining sectors,” said Paul Reynolds, chief executive officer at Canaccord Genuity Group Inc., on the phone from New York. “We’re encouraging our clients to look at those names and accumulate positions.”

    The index has fallen 10 percent since Sept. 3, trimming its advance for the year to 3.2 percent and erasing about C$286.6 billion from stocks through yesterday. Trading volume today was 39 percent higher than the 30-day average, according to data compiled by Bloomberg.

    The S&P/TSX Energy Index climbed 3.2 percent, the biggest increase since November 2011, as the industry rebounded from an 11-day losing streak. The energy gauge had slumped 13 percent in the past 11 days, erasing gains for the year in the longest slump since 1997.

    West Texas Intermediate oil rebounded from an earlier loss after a government report showed U.S. crude inventories expanded last week, exacerbating a global glut. WTI for November delivery rose 92 cents to settle at $82.70 a barrel in New York after dropping below $80 for the first time since June 2012.

    “If you have cash to deploy, now’s the time to do it,” said Les Stelmach, a fund manager at Franklin Bissett Investment Management in Calgary. Parex Resources, an oil and gas exploration company, jumped 8.4 percent to C$11, the most since July. TD Securities analyst Jamie Somerville raised the stock to buy from hold.

    Athabasca Oil surged 10 percent to C$4.39, rebounding from an all-time low yesterday. ARC Resources increased 6.7 percent to C$28.04, the biggest advance in two years.

    The S&P/TSX trades at 18.1 times reported earnings, down from a peak of 21 set in June, according to data compiled by Bloomberg.

    Air Canada, the nation’s largest airline, soared 4.3 percent to C$7.05, snapping six days of losses, and WestJet Airlines Ltd. climbed 6.4 percent. A measure of U.S. airlines recently entered a bear market amid rising concern of the spread of Ebola.

US

By Joseph Ciolli

    Oct. 16 (Bloomberg) — U.S. stocks recovered from early losses as St. Louis Federal Reserve Bank President James Bullard said policy makers should consider delaying the end of bond purchases to halt the decline in inflation expectations.

    Chesapeake Energy Corp. surged the most in almost six years, leading a rally in energy producers, on plans to sell natural gas and oil shale fields for $5.4 billion. Netflix Inc. plunged 19 percent after saying a price increase had slowed subscriber growth, while EBay Inc. sank 4.7 percent after its sales forecast missed estimates.

    The Standard & Poor’s 500 Index ended the session up 0.27 point, or less than 0.1 percent, at 1,862.76 at 4 p.m. in New York after falling as much as 1.5 percent. The index is down 7.4 percent from its last record on Sept. 18. The Dow Jones Industrial Average slipped 24.5 points to 16,117.24 as Goldman Sachs Group Inc. led declines after reporting a drop in trading revenue. The Russell 2000 Index added 1.3 percent and extended a three-day advance to 3.5 percent, its biggest since June.

    “The Bullard comments were a short-term shot of adrenaline,” Chad Morganlander, a money manager at St. Louis- based Stifel Nicolaus & Co., which oversees about $160 billion, said in a telephone interview. “The overall markets are hooked on QE and liquidity being withdrawn.”

    The S&P 500 held near its lowest level since April and clung to a 0.8 percent gain for the year following a slump triggered by concern about slowing economic growth in Europe and China and the spread of Ebola. Benchmark indexes recovered today as Bullard said the Fed to rethink plans to end its quantitative easing program.

    “Inflation expectations are declining in the U.S.,” Bullard said. “That’s an important consideration for a central bank. And for that reason I think that a logical policy response at this juncture may be to delay the end of the QE.” Speaking in an interview today with Bloomberg News, Bullard said U.S. economic fundamentals remain strong and he blamed the market turmoil on downgrades in the outlook for Europe.

    Fed officials are scheduled to next gather on Oct. 28-29 and have said they expect to end asset purchases after that meeting. U.S. 10-year Treasury yields were up 1.4 basis points to 2.15 percent today after falling below 2 percent yesterday for the first time since June 2013. The Fed aims for 2 percent inflation, as measured by the personal consumption expenditures price index, which was 1.5 percent in August and hasn’t exceeded 2 percent since March 2012. Expectations of future inflation, which are important because they can affect spending by businesses and households, have dipped in recent months alongside a decline in oil prices.

    A Bloomberg measure of market forecasts for average inflation over the next five years was 1.48 percent, compared with 2.1 percent in June.

    UnitedHealth Group Inc., Nike Inc. and Chevron Corp. rose more than 1.6 percent for the best gains in the Dow, while Goldman Sachs’s drop shaved 30 points off the index. Energy, industrial and commodity stocks led gains among five of the 10 main industries in the S&P 500. Energy producers have led the S&P 500’s slump since Sept. 18, losing 12 percent as a group.

    Chesapeake Energy Corp. surged 17 percent to $20.79, the most since December 2008. The company plans to sell natural gas and oil shale fields to Southwestern Energy Co. for $5.4 billion in its biggest-ever divestment. The transaction includes 1,500 wells and drilling rights across 413,000 acres in the southern Marcellus Shale and eastern Utica Shale in Pennsylvania and West Virginia, Chesapeake said in a statement.

    Southwestern slumped 10 percent to $31.97, while QEP Resources Inc., a natural gas and oil exploration company, jumped 6.8 percent. Baker Hughes Inc., the third-largest oilfield-services provider, sank 3 percent to $52.01 after saying oil prices below $75 a barrel for a few months may lead to reduced spending on energy exploration and production. U.S. crude futures rebounded after slipping below $80 for the first time since June 2012. Brent rose from the lowest in almost four years.

    Netflix, the world’s largest subscription-streaming service, tumbled 19 percent to $361.70 in its biggest decline since 2012. The company blamed a recent $1 price increase for the shortfall, and offered a guarded outlook for this period. Netflix had gained 22 percent this year through yesterday.

    EBay fell 4.7 percent to $47.88. Revenue for the current period will be $4.85 billion to $4.95 billion, the company said in a statement yesterday. Profit before certain items will be 88 cents to 91 cents a share. Analysts on average projected sales of $5.16 billion and profit of 91 cents, according to data compiled by Bloomberg.

    Goldman Sachs fell 2.6 percent to $172.58, the lowest since August, after posting a bigger drop in trading revenue than competitors including JPMorgan Chase & Co. Profit topped analysts’ estimates as firm cut the portion of revenue it set aside for employee pay and reaped gains from investments made with its own money. Trading revenue fell 11 percent from the second quarter, excluding accounting gains and a benefit tied to paying off subordinated debt. JPMorgan and Citigroup Inc. each posted a 2 percent increase.

    United Rentals Inc. jumped 6.7 percent, its biggest gain since July 2013, after revenue and adjusted earnings beat estimates and the company said it accelerated its share buyback program. Stephen Schwarzman, Blackstone Group LP’s chief executive officer, said the recent declines in financial markets are an “overreaction” and the U.S. economy continues to do well.

    “We’ve got an overreaction going on because of health concerns and foreign policy concerns and all this stuff coming together that’s just scaring people,” Schwarzman said on a conference call today with investors and analysts. “There’s this sense that we’re out of control, and that’s being reflected into markets. The U.S. economy is doing quite nicely.”

Have a wonderful evening everyone.

“Good Advice is almost certain to be ignored, but that’s no reason not to give it.” – Agatha Christie 

Be magnificent! 

“The true delight is in finding out rather than in the knowing.” – Isaac Asimov

Brianna

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 today, I will be writing the newsletter on her behalf.

Photos of the Day
Pope Francis greets the faithful as he arrives in St. Peter’s Square to attend the weekly general audience at the Vatican.

Dancers from the Deep Roots Dance Company rehearse during a training session in an old theater in downtown Havana, Cuba.

Market Closes for October 15^th, 2014    

Market Index	Close	Change
Dow Jones	16141.74	-173.45
		-1.06%
S&P 500	1862.49	-15.21   -0.81%
NASDAQ	4215.317	-11.854   -0.28%
TSX	13869.88	-166.80
		-1.19%

International Markets

Market Index	Close	Change
NIKKEI	15073.52	+137.01
		+0.92%
HANG SENG	23140.05	+92.08
		+0.40%
SENSEX	26349.33	-34.74
		-0.13%
FTSE 100	6211.64	-181.04
		-2.83%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.919	1.947
CND. 30 Year Bond	2.467	2.493
U.S.    10 Year Bond	2.1358	2.1991
U.S. 30 Year Bond	2.9176	2.9562

Currencies

BOC Close	Today	Previous
Canadian $	0.88776	0.88488
US $	1.12643	1.13010
Euro Rate 1 Euro=		Inverse
Canadian $	1.43070	0.69896
US $	1.26600	0.78989

Commodities

Gold	Close	Previous
London Gold Fix	1241.77	1232.86
Oil	Close	Previous
WTI Crude Future	81.78	81.84

Market Commentary:

Canada

By Eric Lam

     Oct. 15 (Bloomberg) — Canadian stocks fell, dropping to an eight-month low a day after the nation’s main index slumped into a correction, led by declines among banks and industrial producers amid concern global economic growth is slowing.

     Athabasca Oil Corp. and Lightstream Resources Ltd. sank at least 5.9 percent as energy producers fell for an 11th straight day, the longest streak since 1997. Toronto-Dominion Bank and Bank of Montreal slumped at least 2.6 percent as financial stocks declined the most in more than two years. AuRico Gold Inc. added 3.6 percent as gold prices posted the longest rally in two months.

     The Standard & Poor’s/TSX Composite Index sank 1.2 percent to 13,869.88 at 4 p.m. in Toronto, the 10th decline in 12 days and the lowest close since February. It’s lost 5.4 percent in the past four days. The index yesterday capped a 10 percent drop from its record on Sept. 3, meeting the common definition of a correction. The S&P/TSX is still up 1.8 percent for 2014.

     The MSCI All-Country World Index, which tracks both developed and developing markets, dropped 1 percent to the lowest level since February. The gauge has declined for five straight days, the longest streak since March.

     All 10 industries in Canada’s benchmark index declined today. Trading volume was 57 percent higher than the 30-day average, according to data compiled by Bloomberg.

    Bank of Montreal tumbled 3.1 percent to C$78.33, the biggest drop since December, and Toronto-Dominion retreated 2.6 percent to C$51.24, the lowest close since April. The S&P/TSX Financials Index sank 2.3 percent, the biggest drop since June 2012. The group has lost 4.8 percent in four days.

     Air Canada dropped 2.3 percent to C$6.76 for a sixth straight day of losses and WestJet Airlines Ltd. sank 3.7 percent to C$27.23, lowest closing price since July. Airlines have sold off amid rising concern over the spread of Ebola. The Bloomberg U.S. Airlines Index extended its retreat since Sept. 2 to 22 percent, meeting the common definition of a bear market.

     Retail sales in the U.S. dropped 0.3 percent in September, more than economists forecast, on a broad pullback in spending that indicates American consumers provided less of a boost for the economy in the third quarter. Canadian existing home sales fell 1.4 percent from a four-year high in September, the first decline in eight months, led by Calgary and Edmonton in oil-rich Alberta.

    The S&P/TSX Energy Index was little changed, paring an earlier decline of as much as 3.2 percent. The group, which accounts for about a quarter of the broader S&P/TSX, has plunged 20 percent from a June peak, erasing its advance for the year.

     West Texas Intermediate crude held at a two-year low after swinging between gains and losses. The price fell earlier as low as $80.01 a barrel. Athabasca Oil plunged 7 percent to C$3.99 and Lightstream Resources sank 5.9 percent to C$3.67 as 46 of 69 energy producers in the group declined.The S&P/TSX trades at 17.8 times reported earnings, down from a peak of 21 set in June, according to data compiled by Bloomberg.

US

 By Oliver Renick and Joseph Ciolli

     Oct. 15 (Bloomberg) — The Standard & Poor’s 500 Index pared its biggest intraday plunge since 2011 as small-cap shares rebounded amid speculation the selloff was overdone. Treasuries trimmed their largest rally in five years.

     The S&P 500 slid 0.8 percent at 4 p.m. in New York, after earlier dropping 3 percent to briefly erase its gains for the year. The Russell 2000 Index of smaller companies jumped 1 percent. The rate on 10-year Treasuries fell 4 basis points to 2.16 percent, after dropping below 2 percent for the first time since June 2013. The Stoxx Europe 600 Index plunged 3.2 percent, leaving it down more than 10 percent from a June high.

    Commodities reached a five-year low as oil extended a rout. The Bloomberg Dollar Spot Index lost 0.7 percent and gold rose 0.9 percent. “Investor sentiment has clearly been pummeled of late as some signs of surrender are forming,” Tobias Levkovich, Citigroup Inc.’s chief U.S. equity strategist in New York, wrote in a note today. “While no one ever rings a bell at the bottom and there is not generally a cathartic, cataclysmic crescendo of capitulation, fear is emerging which intimates that a floor may be within reach.”

     Equities plummeted early as data showed retail sales in the U.S. dropped 0.3 percent in September, more than economists forecast, while China reported weaker-than-estimated consumer inflation. Fed Chair Janet Yellen voiced confidence in the durability of the U.S. economic expansion in the face of slowing global growth at a closed-door meeting last weekend, according to two people familiar with her comments.

    Stocks bounced in the afternoon after the S&P 500’s losses snowballed to 3 percent. The index came to within 4 points of erasing the day’s decline. Had the recovery gone all the way, it would’ve been the biggest reversal since May 2010, when the S&P 500 erased a drop of more than 3 percent, data compiled by Bloomberg show.

     The Russell 2000 was down 2 percent at its lowest point, before turning higher in the final half-hour of trading. The index has fallen more than 10 percent from a record reached in March. The S&P 500 hasn’t had a decline of that magnitude in three years. The benchmark gauge has fallen 6.2 percent from its Sept. 18 record, trading below its 200-day average, amid concern a global slowdown will hurt the American economy just as the Federal Reserve weighs when to raise interest rates.

     Retail sales in the U.S. dropped more than forecast in September, reflecting a broad-based pullback that signaled consumers took a breather. Another report showed manufacturing in the Fed Bank of New York’s region slowed more than projected in October. The bank’s so-called Empire State index dropped to 6.2 from an almost five-year high of 27.5 in September. Readings greater than zero signal growth.

       Yellen told the Group of 30 that the economy looked to be on track to achieve growth of around 3 percent going forward, according to the people familiar with her comments during the meeting in Washington. Businesses were “generally optimistic” as economic activity continued to grow at “modest to moderate” pace, according to the Fed’s Beige Book report released today.

    Overseas, data showed China’s consumer-price gains declined to the lowest in five months. Reports in Europe this week showed German investor confidence slid to the weakest level in almost two years while U.K. inflation unexpectedly stalled.

    “The market was already in a bad, bad mood ahead of the largely known weakness in retail sales this morning,” Andrew Wilkinson, chief market analyst at Interactive Brokers LLC, wrote in a note today. “Even the best report of the year would have failed to make much impact on investor sentiment captivated by signs of the bear and other factors such as the spread of the Ebola virus.”

    Almost 12 billion shares changed hands in the U.S., the most since October 2011. Financial companies in the S&P 500 plunged 2 percent for the biggest losses.

    Intel Corp. and JPMorgan Chase & Co. sank more than 2.7 percent to pace losses in the Dow Jones Industrial Average. Wal- Mart Stores Inc. dropped 3.6 percent after cutting its annual sales forecast and predicting slower profit growth over the next three years. KeyCorp retreated 5.8 percent after the lender’s quarterly revenue trailed analysts estimates. Bank of America Corp. sank 4.6 percent after revenue declined.

     Netflix Inc. plunged 25 percent in late trading. After the market close, the company reported third-quarter subscriber growth that missed the company’s forecast, saying a recent price increase may have hurt signups to its monthly video-streaming service.

     Investors are watching earnings for signs of the economy’s strength. More than 50 S&P 500 companies are releasing earnings this week, according to data compiled by Bloomberg. Profit for the members of the index probably rose 4.8 percent in the third quarter and sales increased 4.2 percent, analysts projected.

     Concern about the spread of Ebola has also started to affect investor psychology, contributing to a 17 percent decline in U.S. airline stocks since a high in September and spurring intermittent plunges in broader averages. A second health-care worker in Texas tested positive after caring for an Ebola patient, opening new questions about oversight lapses.

     The benchmark 10-year yield fell 4 basis points to 2.16 percent and reached the lowest since May 2013. The rate retreated as much as 34 basis points. Treasury trading volume reached the highest on record as about $777 billion in U.S. government debt changed hands by 2 p.m., according to ICAP Plc, the world’s largest interdealer broker.

    Rates on federal fund futures show traders betting that the Fed will raise interest rates in December 2015, with chances of an increase in September fading to 37 percent from 46 percent yesterday and 67 percent two months ago, according to data compiled by Bloomberg.

    The MSCI All-Country World Index fell 1 percent, extending its lowest level since February and dropping for a fifth day. The Stoxx Europe 600 Index fell 3.2 percent, the most in almost three years, and closed at the lowest level since December. The gauge is down more than 10 percent from its high for the year on June 10, meeting the common definition of a correction.

     Shire Plc tumbled 22 percent. AbbVie Inc. is on the verge of abandoning its $51 billion takeover of Shire after recent talks with the U.S. Treasury Department and Internal Revenue Service left it convinced that tax-rule changes would undermine the deal’s rationale, people familiar with the matter said.

    Greece’s 10-year notes dropped a third day, pushing the yield up by the most in more than two years, on concern the government’s plan to end its bailout early will leave the nation unable to raise funding sustainably. The Athens Stock Exchange General Index plunged 6.3 percent, after yesterday’s 5.7 percent decline.

     The Bloomberg Commodity Index dropped 1.2 percent to the lowest level since 2009 as copper and zinc slumped amid concern that demand is slowing in China, the world’s biggest consumer.

     Brent crude fell 1.5 percent to a four-year low. West Texas Intermediate crude retreated 6 cents to $81.78 a barrel, the least in two years. Both grades have collapsed into a bear market as shale supplies boost U.S. output to the most in almost 30 years and global demand growth weakens. The largest OPEC producers are responding by cutting prices, sparking speculation that they will compete for market share rather than reduce supply.

Gold futures climbed for a third day, adding 0.9 percent, as the weaker retail sales spurred speculation that interest rates will remain low, boosting demand for the metal as a haven. More than $970 million has been added to the value of global exchange-traded products backed by bullion this month.

     The MSCI Emerging Markets Index slipped 1 percent to the lowest since March, with Russia’s Micex Index declining 1.2 percent. The MSCI Asia Pacific Index climbed 0.3 percent, rebounding from a six-month low. The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong rose 0.3 percent, after yesterday capping a decline of more than 10 percent from its peak in September. The Shanghai Composite Index gained 0.6 percent.

Have a wonderful evening everyone.

“Problems are not stop signs, they are guidelines.” – Robert H. Schuller

 

Be magnificent!

“We must be willing to let go of the life we’ve planned, so as to have the life that is waiting for us.” E.M. Forster

Brianna

 

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 today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Visitors view the autumn foliage of acer trees in the Old Arboretum at Westonbirt in south west England. The Japanese maples are some of the first species to turn red and orange at this famous tree collection, originally planted in the nineteenth century. Toby Melville/Reuters

Two crowned cranes stand face to face in their compound at the zoo in Berlin. These cranes are native to the Sahel and West Africa. Stephanie Pilick/dpa/AP

Market Closes for October 14^th, 2014    

Market Index	Close	Change
Dow Jones	16315.19	-5.88
		-0.04%
S&P 500	1877.78	+3.04   +0.16%
NASDAQ	4227.172	+13.516   +0.32%
TSX	14027.20	-200.16
		-1.41%

International Markets

Market Index	Close	Change
NIKKEI	14936.51	-364.04
		-2.38%
HANG SENG	23047.97	-95.41
		-0.41%
SENSEX	26349.33	-34.74
		-0.13%
FTSE 100	6392.68	+26.44
		+0.42%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.947	2.013
CND. 30 Year Bond	2.493	2.547
U.S.    10 Year Bond	2.1991	2.2892
U.S. 30 Year Bond	2.9562	3.0195

Currencies

BOC Close	Today	Previous
Canadian $	0.88488	0.89183
US $	1.13010	1.12129
Euro Rate 1 Euro=		Inverse
Canadian $	1.43070	0.69896
US $	1.26600	0.78989

Commodities

Gold	Close	Previous
London Gold Fix	1232.86	1223.26
Oil	Close	Previous
WTI Crude Future	81.84	85.82

Market Commentary:

Canada

By Eric Lam

     Oct. 14 (Bloomberg) — Canadian stocks fell, sending the Standard & Poor’s/TSX Composite Index to an eight-month low, as concern about energy demand pushed oil producers lower for the 10th straight day, the longest streak since 1997.

     Energy stocks in the index lost 2 percent as a group, the biggest loss among 10 industries. Precision Drilling Corp. and Canadian Natural Resources Ltd. slid at least 3.1 percent. Air Canada lost 4.3 percent, following a broad selloff in airlines on concern over the spread of Ebola.

     The S&P/TSX sank 0.8 percent to 14,113.55 at 12:32 p.m. in Toronto, the ninth decline in 11 days. Earlier, the index fell 1.8 percent, briefly reaching a 10 percent drop from its record on Sept. 3. The S&P/TSX is still up 4 percent for 2014.

     “Part of the selloff is energy related, but then you have the other challenge that the areas of the TSX not related to commodities were perhaps overvalued,” said Philip Petursson, director of institutional equities at Manulife Asset Management Ltd. in Toronto. His firm manages about $281 billion. “You’ve got a valuation adjustment going on at the same time as energy prices are dropping substantially.”

     Six of 10 industries in Canada’s benchmark index declined today. Trading volume was 64 percent higher than the 30-day average at this time of day, according to data compiled by Bloomberg.

     Producers of commodities from oil to copper and gold have slumped after leading gains in the benchmark equity gauge in the first half of the year amid concern economic growth is slowing in Europe and China. The S&P/TSX Energy Index, which accounts for about a quarter of the broader gauge, has plunged 18 percent from a June peak to erase its advance for the year.

     Canadian Natural Resources sank 3.1 percent to C$37.27. The oil and gas producer has fallen for 11 days, the longest streak since June 1988.

     Brent crude fell to the lowest level in almost four years after the International Energy Agency said oil demand will expand this year at the slowest pace since 2009. West Texas Intermediate slipped for the fifth time in six days.

     Oil futures have collapsed into bear markets as shale supplies boost U.S. output to the most in almost 30 years and global demand weakens. The biggest producers in the Organization of Petroleum Exporting Countries are responding by cutting prices, sparking speculation that they will compete for market share rather than trim output.

     The S&P/TSX trades at 18 times reported earnings, down from a peak of 21 in late July, according to data compiled by Bloomberg.

     Canadian Pacific Railway Ltd. rose 0.6 percent. The company made a merger proposal last week to CSX Corp. that was rebuffed, according to people familiar with the matter. CSX is the largest U.S. eastern railroad. Canadian National Railway Co. slid 0.7 percent to C$71.75.

     Pretium Resources Inc. jumped 18 percent to C$6.55 and AuRico Gold Inc. climbed 10 percent to C$4.16 to pace gains among raw-materials producers. Gold for December delivery added 0.2 percent to $1,232.70 an ounce in New York, the highest in almost four weeks, as concern that economic growth is slowing spurred demand for a haven asset.

US

By Joseph Ciolli and Callie Bost

     Oct. 14 (Bloomberg) — A rebound in U.S. stocks faded late in the session as energy shares slid with the price of oil, snuffing out most of an earlier rally in benchmark indexes led by industrial companies, airlines and banks.

     The Standard & Poor’s 500 Index ended the session up less than 0.2 percent at 1,877.70 at 4 p.m. in New York after earlier climbing as much as 1.3 percent. The measure is down 6.6 percent from its record on Sept. 18 and yesterday capped its worst three-day retreat since 2011. The Dow Jones Industrial Average lost 5.88 points, or less than 0.1 percent, to 16,315.19 today, wiping out a 143 point earlier gain.

     “The last hour has come down to ‘do you want to hold stocks overnight or not?’” Ryan Detrick, a Cincinnati-based strategist at investment research firm See It Market, said by phone. “There’s a lot of skittishness and concerns out there with headlines on a global slowdown, a recession in Europe, a slowdown in Asia and Ebola.”

     Energy shares in the S&P 500 lost 1.2 percent as a group and extended their retreat from a June record to 20 percent. West Texas Intermediate crude oil slid 4.6 percent to $81.84 a barrel, the lowest settlement price in more than two years, after the International Energy Agency said demand will expand this year at the slowest pace since 2009. Brent crude sank to the lowest since 2010.

     Small-cap stocks pared gains, leaving the Russell 2000 Index up 1.2 percent after a midday gain of as much as 2.5 percent. About 9.2 billion listed shares changed hands in the U.S., 51 percent higher than the three-month daily average.

     Some 53 S&P 500 companies are scheduled to release earnings this week, according to data compiled by Bloomberg. Profit for members of the index probably rose 4.8 percent in the third quarter and sales gained 4.2 percent, analysts projected.

     Data from Europe today showed consumer prices in Sweden and Spain fell, U.K. inflation slowed to a five-year low, and a measure of German investor confidence decreased for a 10th month. The German government cut its economic forecast for this year and for 2015.

     U.S. equities lost about $744 billion in value from Oct. 8 through yesterday amid concern that slower global growth could hurt America’s economic recovery just as the Federal Reserve gauges when to raise interest rates. Yesterday’s selloff accelerated as airlines sank on Ebola concerns and energy shares plunged.

     The S&P 500 closed below its 200-day average for the first time in two years yesterday and slid to the lowest level since May.

     The Chicago Board Options Exchange Volatility Index decreased 7.51 percent to 22.79 today. The gauge known as the VIX rose 16 percent yesterday to its highest level since June 2012, bringing the index’s three-day move to 63 percent.

     “It has been a pretty fierce sell-off and investors reached an extreme risk aversion,” said Thomas Thygesen, head of cross-asset strategy at Skandinaviska Enskilda Banken AB in Copenhagen. “You can’t keep that selling momentum forever. Concerns that slower global growth would affect the U.S. have been overdone. We know the Fed will only adjust interest rates once the time is right, and they have reassured markets.”

     Chevron Corp., Schlumberger Ltd. and ConocoPhillips lost more than 2 percent to lead declines in 32 of 43 energy companies in the S&P 500 as the group erased a morning gain of as much as 1.5 percent.

     The Bloomberg U.S. Airlines Index increased 6.3 percent after plummeting 16 percent over the prior six trading sessions. United Continental Holdings Inc. increased 6.5 percent to $43.17, while American Airlines Group Inc. jumped 10 percent and Delta Air Lines Inc. climbed 6.1 percent.

     The Centers for Disease Control and Prevention is establishing an “Ebola response team” that can be on site in hours at any hospital if a case of the virus is reported, CDC Director Tom Frieden told reporters today. Experts at a Dallas hospital are making “immediate enhancements” to practices, including a site manager who will make sure protective gear is used correctly and limiting number of staff who will give care, he said.

     Financial stocks in the S&P 500 gained 0.5 percent as a group, paring an earlier 1.2 percent rally. Crown Castle International Corp. rose 3 percent to $80.80 after activist investor Corvex Management LP said the company should either increase its dividend payout ratio or boost its leverage ratio and buy back more stock. After recent meetings with company management, Corves said Crown Castle’s stock could top $100 by following its suggestions.

     Citigroup Inc. climbed 3.2 percent to $51.47. The third- biggest U.S. bank said profit rose 6.6 percent, topping estimates as bond-trading revenue climbed and lending improved. The firm also announced plans to exit consumer banking in 11 markets.

     JPMorgan Chase & Co. slipped 0.3 percent to $57.99, paring an earlier 3.6 percent tumble. The biggest U.S. bank swung to a third-quarter profit from a year earlier as a surprise gain in fixed-income trading helped boost revenue and legal costs narrowed. Net income was $1.36 a share, compared with a loss of $380 million, or 17 cents, a year earlier on legal and regulatory costs, according to a statement. Analysts on average had forecast EPS of $1.39.

     Wells Fargo & Co. slipped 2.7 percent to $48.83. The world’s most valuable bank posted a third-quarter profit that matched analysts’ estimates as mortgage banking revenue fell from the previous three-month period.
 

Have a wonderful evening everyone.

Be magnificent!

“Life is a song – sing it. Life is a game – play it. Life is a challenge – meet it. Life is a dream – realize it. Life is a sacrifice – offer it. Life is love – enjoy it.” Sai Baba 

As ever,

 

Karen

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

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 today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Malala Yousafzai poses with a bouquet after speaking during a media conference at the Library of Birmingham, in Birmingham, England, after she was named as winner of The Nobel Peace Prize. Rui Vieira/AP

An elephant of the Swiss national circus ‘Knie’ takes a bath in the Lake Geneva, at the Bellerive beach near Lausanne, Switzerland.Valentin Flauraud/AP

Market Closes for October 10^th, 2014    

Market Index	Close	Change
Dow Jones	16544.10	-115.15
		-0.69%
S&P 500	1906.13	-22.08   -1.15%
NASDAQ	4276.238	-102.098   -2.33%
TSX	14227.36	-233.24
		-1.61%

International Markets

Market Index	Close	Change
NIKKEI	15300.55	-178.38
		-1.15%
HANG SENG	23088.54	-445.99
		-1.90%
SENSEX	26297.38	-339.90
		-1.28%
FTSE 100	6339.97	-91.88
		-1.43%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.013	2.034
CND. 30 Year Bond	2.547	2.570
U.S.    10 Year Bond	2.2892	2.3249
U.S. 30 Year Bond	3.0195	3.0639

Currencies

BOC Close	Today	Previous
Canadian $	0.89183	0.89382
US $	1.12129	1.11879
Euro Rate 1 Euro=		Inverse
Canadian $	1.41535	0.70654
US $	1.26225	0.79224

Commodities

Gold	Close	Previous
London Gold Fix	1223.26	1224.55
Oil	Close	Previous
WTI Crude Future	85.82	85.77

Market Commentary:

Canada

By Eric Lam

     Oct. 10 (Bloomberg) — Canadian stocks fell a second day amid a global market selloff, tumbling the most in more than a year, as declining oil and metal producers outweighed better- than-expected jobs data.

     Calfrac Well Services Ltd. slumped 8.4 percent and Trican Well Service Ltd. declined 6 percent, as a gauge of energy stocks tumbled a ninth day for its worst losing streak in three years. Air Canada fell 5 percent for a fourth day of declines.

     The Standard & Poor’s/TSX Composite Index fell 233.24 points, or 1.6 percent, to 14,227.36 at 4 p.m. in Toronto, the biggest decline since June 2013 and a six-month low. The equity gauge fell this week for the sixth straight time, the longest stretch since April 2012. The S&P/TSX has tumbled 9.1 percent from its Sept. 3 record.

     “A lot of financial players in oil are exiting the market,” said Monika Skiba, a senior managing director and fund manager at Manulife Asset Management Ltd. in Toronto. Her firm manages about $281 billion. “The reason they’re doing it is the expectations of global growth going weaker. Energy is still weak, gold stocks are continuing to be weak, and industrials.”

     The MSCI All-Country World Index, which tracks both developed and developing markets, fell 1.6 percent to the lowest since February as the Dow Jones Industrial Average erased its gains for the year. The Bloomberg Commodity Index dropped 0.5 percent.

     “A large part of the rise in commodities and energy prices in 2014 was unwarranted,” said Kash Pashootan, portfolio manager at First Avenue Advisory of Raymond James Ltd. in Ottawa. His firm manages C$220 million. “It’s been purely driven by geopolitical concerns and uncertainty with supply disruptions. The TSX will trade in the short and medium term based on how elevated those risks are.”

     The unemployment rate in Canada unexpectedly dropped to 6.8 percent last month, the lowest since December 2008, as the economy added 74,100 new jobs, including 69,300 full-time positions. Economists had forecast an increase of 20,000, and an unchanged employment rate.

     All 10 industries in Canada’s benchmark gauge declined, on trading volume 32 percent higher than the 30-day average.

     Calfrac Well Services plunged 8.4 percent to C$13.90, the most since 2011. Trican lost 6 percent to C$10.98, close to a two-year low. Energy stocks retreated 1.5 percent as a group to an eight-month low.

     The S&P/TSX Energy Index has fallen for nine days, the longest stretch since August 2011, and is down 17 percent from its June peak this year.

     Crude in New York posted the biggest weekly drop since January after falling into a bear market yesterday as it slid 20 percent from its June high. Brent crude traded near a four-year low.

     Canadian Pacific Railway Ltd. dropped 4.7 percent to C$212.20 and Canadian National Railway Co. retreated 3 percent to C$72.25 as industrial stocks slumped 2.8 percent, the most in three years.

     Novagold Resources Inc. slumped 11 percent to C$3.11 as gold futures fell from a two-week high. Raw-materials stocks sank 1.8 percent as a group to a December low.

US

By Callie Bost

     Oct. 10 (Bloomberg) — The Standard & Poor’s 500 Index posted the biggest weekly drop in two years as concern about chipmaker earnings fueled a rout across the technology industry.

     The Dow Jones Industrial Average erased gains for the year as Intel Corp., Microsoft Corp. and Cisco Systems Inc. fell more than 3.5 percent. Microchip Technology Inc. tumbled 12 percent said quarterly revenue was crimped by a decline in China sales and warned of an industry correction. Juniper Networks Inc. sank 9.1 percent after reporting preliminary results that missed its own forecast.

     The S&P 500 lost 1.1 percent to 1,906.13 as of 4 p.m. in New York. The index fell 3.1 percent for the week, the biggest drop since May 2012. The Nasdaq Composite Index sank 2.3 percent. The Dow average lost 115.15 points, or 0.7 percent, to 16,544.10.

     “It’s been an emotional roller coaster,” Mark Freeman, who oversees $20.1 billion as chief investment officer at Westwood Holdings Group Inc., said by phone. “It’s really about investors’ degree of confidence on growth outside of the U.S. and that’s what has been called into question.”

     The Chicago Board Options Exchange Volatility Index jumped above 20 for the first time since February, surging 46 percent for the week. The S&P 500 has moved more than 1 percent for the past four days.

     About 9.2 billion shares changed hands on U.S. exchanges, the most in three weeks, according to data compiled by Bloomberg. For the week, the average was 7.9 billion, the most since 2011.

     Global equities have lost $3.5 trillion in value since reaching a record last month. European Central Bank President Mario Draghi clashed with Germany’s finance minister yesterday over the steps needed to revive growth in the euro area, while Federal Reserve officials have said the U.S. economy may be at risk from a global slowdown.

     Stocks continued to slip after 4 p.m. after the close of equity exchanges, with S&P 500 December futures falling as low as 1,895. The contract closed at 1,897.4 on Aug. 7 and reached an intraday level of 1,892.9 that day, a key level for technical analysts.

     The S&P 500 has fallen for the past three weeks, the longest run since January. It’s down 5.2 percent from a record on Sept. 18, trimming its gain for the year to about 3 percent.

     Chipmakers had the worst losses today, with the Philadelphia Semiconductor Index falling almost 7 percent. Microchip Technology sank 12 percent to $39.96 after reporting preliminary quarterly sales that trailed forecasts. The company makes semiconductors used in products ranging from home appliances to computer network hardware to cars, making its earnings a broad indicator of demand across the industry.

     “We believe that another industry correction has begun, and that this correction will be seen more broadly across the industry in the near future,” Steve Sanghi, Microchip’s chief executive officer, said in a statement.

     Juniper Networks dropped 9.1 percent to $19.04. Revenue is projected to be $1.11 billion to $1.12 billion, less than Juniper’s own estimate of $1.15 billion to $1.2 billion, the company said.

     The International Monetary Fund cut its forecast for global growth this week and said the euro area faces the risk of a recession. European Central Bank President Mario Draghi pledged at the IMF’s annual meeting to loosen monetary policy more if needed. That contrasted with German Finance Minister Wolfgang Schaeuble, who warned against U.S.-style quantitative easing and urged continued budgetary discipline.

     Federal Reserve policy makers said in minutes of their last meeting that slowing global growth and the stronger greenback posed potential risks to the U.S. outlook.

     Investors are also watching earnings reports after Alcoa Inc. unofficially kicked off the results season this week. JPMorgan Chase & Co., Citigroup Inc., BlackRock Inc. and Google Inc. are among S&P 500 members posting results next week. Profit for companies in the index probably rose 4.8 percent and sales gained 4.2 percent in the third quarter, analysts projected.

     “It’s healthy to have corrections along the way because it does reduce valuations, it does shake out people that don’t have fundamental convictions,” Jim McDonald, chief investment strategist at Chicago-based Northern Trust Corp., said by phone. His firm manages about $924 billion. “A long overdue correction can help the bull market have a longer duration.”

 

Have a wonderful Thanksgiving Everyone!!

Be magnificent!

 

“Cultivate the habit of being grateful for every good thing that comes to you, and to give thanks continuously. And because all things have contributed to your advancement, you should include all things in your gratitude.” ― Ralph Waldo Emerson

As ever,

 

Karen

“The roots of all goodness lie in the soil of appreciation for goodness.” – Dalai Lama 

 

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 today, I will be writing the newsletter of her behalf.

PHOTOS OF THE DAY

The sun rises over the north sea as ‘The Couple,’ by artist Sean Henery, sits just off the coast at Newbiggin-by-the-Sea, England.

A radio-controlled flying witch makes a test flight past the moon along the pacific ocean in Carlsbad, Calif. The life-sized device was invented by Otto Dieffenbach lll. Mike Blake/Reuters

 Market Closes for October 9^th, 2014    

Market Index	Close	Change
Dow Jones	16659.25	-334.97
		-1.97%
S&P 500	1928.21	-40.68   -2.07%
NASDAQ	4378.336	-90.258   -2.02%
TSX	14460.60	-205.87
		-1.40%

International Markets

Market Index	Close	Change
NIKKEI	15478.93	-117.05
		-0.75%
HANG SENG	23534.53	+271.20
		+1.17%
SENSEX	26637.28	+390.49
		+1.49%
FTSE 100	6431.85	-50.39
		-0.78%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.034	2.017
CND. 30 Year Bond	2.570	2.555
U.S.    10 Year Bond	2.3249	2.3213
U.S. 30 Year Bond	3.0639	3.0599

Currencies

BOC Close	Today	Previous
Canadian $	0.89382	0.90033
US $	1.11879	1.11070
Euro Rate 1 Euro=		Inverse
Canadian $	1.41973	0.70436
US $	1.26898	0.78803

Commodities

Gold	Close	Previous
London Gold Fix	1224.55	1221.22
Oil	Close	Previous
WTI Crude Future	85.77	87.31

Market Commentary:

Canada

By Eric Lam

     Oct. 9 (Bloomberg) — Canadian stocks fell to the lowest level since April as commodity producers sank with the price of oil on concerns about a slowdown in global economic growth.

     Athabasca Oil Corp. and Ithaca Energy Inc. tumbled at least 8.2 percent as oil producers fell for an eighth straight day. Iamgold Corp. and Kinross Gold Corp. dropped more than 5 percent as gold producers resumed declines after jumping the most in a year yesterday.

     The Standard & Poor’s/TSX Composite Index fell 205.87 points, or 1.4 percent, to 14,460.60 at 4 p.m. in Toronto, the lowest level since April 16. The equity gauge has fallen 2.2 percent this week, on track for a sixth straight weekly decline, the longest stretch since April 2012. The S&P/TSX has tumbled 7.7 percent from its Sept. 3 record.

     “Clearly market momentum has turned to the downside with added volatility,” said Greg Eckel, a fund manager at Morgan Meighen & Associates Ltd. in Toronto. The firm manages about C$1.4 billion.

     Nine of the 10 industries in the benchmark gauge declined on trading volume 35 percent higher than the 30-day average.

     Athabasca Oil tumbled 8.3 percent to C$4.56, a record low, and Ithaca Energy retreated 9.9 percent to C$1.73 as energy stocks slumped 2.7 percent as a group, to an eight-month low.

   The S&P/TSX Energy Index has fallen for eight days, the longest stretch since August 2011, and is down 15 percent from its June peak this year.

     Crude in New York slumped 1.8 percent to settle at $85.77 a barrel, closing 20 percent below its June high as oil supplies increased and economic growth faltered.

     Brent crude for November delivery dropped below $90 a barrel for the first time since June 2012. Brent ended yesterday more than 20 percent below this year’s June peak, meeting a common definition of a bear market.

     Teck Resources Ltd., Canada’s largest diversified miner, fell 6.2 percent to C$18.09, the lowest since July 2009. Iron ore prices continued to plunge in September on new supply and tepid demand from China, the biggest importer and consumer, Bloomberg Intelligence analysts Zhuo Zhang and Kenneth Hoffman said in a report.

     Iamgold plunged 5.3 percent to C$2.70 and Kinross Gold retreated 5 percent to C$3.42. The S&P/TSX Materials Index tumbled 2.9 percent, the most since March after a 4 percent rally yesterday.

     Canadian Tire Corp. increased 3.1 percent to C$120.67, a record, after unveiling a three-year growth strategy that includes additional share buybacks of C$400 million ($360 million) through 2015.

US

By Oliver Renick

     Oct. 9 (Bloomberg) — The Standard & Poor’s 500 Index plunged the most since April, erasing its biggest rally this year, on concern that slowing growth in Europe will hurt the American economy as the Federal Reserve ends its bond purchases.

     All 10 of the main S&P 500 groups dropped at least 0.9 percent. Energy stocks plunged 3.7 percent to pace losses as U.S. crude slipped into a bear market. Materials producers sank 2.5 percent even as precious metals rallied. Alcoa Inc. lost 4.2 percent after unofficially starting the earnings season. The Chicago Board Options Exchange Volatility Index jumped 24 percent to the highest since February.

     The S&P 500 dropped 2.1 percent to 1,928.21 at 4 p.m. in New York, after rallying 1.7 percent yesterday. The Russell 2000 Index sank 2.7 percent. Both gauges had their worst day since April. The Dow Jones Industrial Average lost the most since February, sinking 334.97 points, or 2 percent, to 16,659.25. That cut its gain this year to 0.5 percent.

     “The fear is that global interest rates are so low that there’s risk of deflation, and the economic recovery, which has shown some steady progress, is now deteriorating,” Timothy Ghriskey, who helps oversee $1.5 billion as chief investment officer for Bedford Hills, New York-based Solaris Asset Management LLC, said in a phone interview. “The news out of Europe is nothing new, but it’s come to front and center now with Draghi’s new comments.”

     Equities extended losses today after European Central Bank President Mario Draghi said there are signs the euro-area’s economic growth is slowing and policy makers must lift inflation from an “excessively low” level. Separately, a report by four economic institutes said Germany’s economy is on the verge of recession.

     The S&P 500 advanced 1.8 percent yesterday, the biggest jump since October 2013, following the Federal Reserve’s hint that interest rates will stay near zero amid concerns that a slowdown in global growth and stronger dollar will hurt the U.S.economy.

     After plunging 1.5 percent on Oct. 7, the S&P 500’s rally yesterday was the biggest turnaround in almost three years. The measure ended 2.1 percent away from its all-time closing high of 2,011.36 reached Sept. 18. The gauge is up 4.3 percent this year.

     Volatility is returning to stocks after the market experienced the longest stretch of calm in two decades. Seven trading days into October, the S&P 500 has posted five days of moves of more than 1 percent. The index went without a 1 percent move for 62 days through July 16, the longest stretch since 1995.

     The VIX jumped 24 percent 18.76 today, the highest since Feb. 5.

     Over the last 15 days, the S&P 500 has posted an average daily change of about 0.9 percent, compared with 0.48 percent in 2014 before that. Volume has risen correspondingly, with an average of about 7 billion shares changing hands each day on U.S. markets through yesterday, compared with 6.2 billion the rest of this year. About 8.3 billion traded today on U.S. exchanges.

     “We’ve seen the reintroduction of the risk-on risk-off propensity of the market and that high level of volatility is here to stay for awhile,” Drew Wilson, an investment analyst with Fenimore Asset Management in Cobleskill, New York, said by phone.

     Some Fed officials said Europe’s cooling economy and low inflation could lead to a further appreciation of the dollar. That, in turn, might curb U.S. exports and limit price gains that have lagged behind the Fed’s goal. The release of minutes came a day after the International Monetary Fund cut economic- growth forecasts and warned of “frothy” equities.

     European stocks dropped a third day today, extending losses from earlier in the week spurred by the IMF lowering its forecasts and data showing German industrial production contracted the most in more than five years.

     Draghi said in speech in Washington that boosting growth in the euro area will have to come through improvements in productivity.

     “We are accountable to the European people for delivering price stability, which today means lifting inflation from its excessively low level,” he said. “And we will do exactly that.”

     Investors are also keeping an eye on developments in Hong Kong, where the government today suspended plans to hold formal talks with pro-democracy protesters tomorrow after leaders of the movement called for more demonstrations.

     U.S. data today showed the number of Americans filing applications for unemployment benefits unexpectedly fell last week, pushing the average over the past month to the lowest level in eight years and signaling that employers are hanging on to workers as the economy improves.

     “We are in a phase of uncertainty until the big companies release their third-quarter figures,” said Christian Zogg, who manages about the equivalent of about $10 billion as head of equity and fixed income at LLB Asset Management AG in Vaduz, Liechtenstein. “The question in the U.S. is whether companies can keep their good margins.”

     Profit at companies in the S&P 500 rose 4.9 percent in the July-September period, according to the average estimate of analysts in a Bloomberg survey. PepsiCo and Family Dollar Stores Inc. reports earnings today.|

     Energy stocks declined 3.7 percent today, led by losses of more than 6.3 percent in both Newfield Exploration Co. and QEP Resources Inc. The group has plunged 16 percent since reaching a high in June as the price of oil has tumbled.

     West Texas Intermediate oil joined Brent in falling more than 20 percent from this year’s June peak, meeting a common definition of a bear market, on concern rising global supplies will be more than enough to meet slowing demand.

     Materials stocks lost 2.5 percent, dropping to the lowest level since April. Newmont Mining Corp. and Dow Chemical Co. fell at least 3.5 percent to lead losses.

     Among stocks moving on corporate news, Gap Inc. plunged 12 percent after saying its chief executive officer will step down. Advanced Micro Devices Inc. sank 10 percent to a 17-month low after naming a new CEO a week before reporting earnings. Alcoa fell 4.2 percent after unofficially starting the earnings season. Apple Inc. climbed 0.2 percent after investor Carl Icahn urged the company to accelerate share repurchases.
 

Have a wonderful evening everyone.

Be magnificent!

“Take up one idea. Make that one idea you life – think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success.” – Swami Vivekananda

As ever,

 

Karen

“Imagination is everything. It is the preview of life’s coming attractions.” – Albert Einstein

 

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 today, I will be writing the newsletter of her behalf.

PHOTOS OF THE DAY

Early in the morning, a lunar eclipse, known as a blood moon, appears behind a gargoyle atop the Dallas County Courthouse. The moon appears orange or red, the result of sunlight scattering off Earth’s atmosphere. Tom Fox/The Dallas Morning News/AP

Turtles make their way into the ocean upon their release in Bali, Indonesia. More than a thousand baby turtles were released during a campaign to save sea turtles. Firdia Lisnawati/AP

Market Closes for October 8^th, 2014    

Market Index	Close	Change
Dow Jones	16994.22	+274.83
		+1.64%
S&P 500	1968.89	+33.79   +1.75%
NASDAQ	4468.594	+83.391   +1.90%
TSX	14666.47	+90.02
		+0.62%

International Markets

Market Index	Close	Change
NIKKEI	15595.98	-187.85
		-1.19%
HANG SENG	23263.33	-159.19
		-0.68%
SENSEX	26246.79	-25.18
		-0.10%
FTSE 100	6482.24	-13.34
		-0.21%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.017	2.032
CND. 30 Year Bond	2.555	2.555
U.S.    10 Year Bond	2.3213	2.3427
U.S. 30 Year Bond	3.0599	3.0488

Currencies

BOC Close	Today	Previous
Canadian $	0.90033	0.89510
US $	1.11070	1.11720
Euro Rate 1 Euro=		Inverse
Canadian $	1.41423	0.70710
US $	1.27238	0.78537

Commodities

Gold	Close	Previous
London Gold Fix	1221.22	1210.43
Oil	Close	Previous
WTI Crude Future	87.31	89.15

Market Commentary:

Canada

By Eric Lam

     Oct. 8 (Bloomberg) — Canadian stocks rose, rallying from the lowest intraday levels since April, as gold producers and banks surged on speculation the U.S. Federal Reserve will keep interest rates lower for a longer period.

     Torex Gold Resources Inc. and B2Gold Corp. soared at least 13 percent as gold stocks rallied the most in a year. Royal Bank of Canada, the second-largest lender by assets, jumped 1.7 percent to pace gains among financial stocks. Penn West Petroleum Ltd. and Bellatrix Exploration Ltd. tumbled more than 2.4 percent as energy producers dropped to the lowest since March.

     The Standard & Poor’s/TSX Composite Index climbed 90.02 points, or 0.6 percent, to 14,666.47 at 4 p.m. in Toronto. The equity gauge had fallen 1.4 percent in the past two days and has declined for five straight weeks, the longest stretch since April 2012.

     Fed policy makers at their last meeting said a global slowdown and a stronger dollar posed potential risks to the outlook for the U.S. economy. The minutes were released a day after the International Monetary Fund cut its global growth forecast. Gold for immediate delivery increased 0.8 percent in New York and has rallied 2.3 percent in the three days, the most since June.

     Torex Gold soared 16 percent to C$1.70 and B2Gold increased 13 percent to C$2.47 as the S&P/TSX Gold Index surged 7.7 percent, the most since September 2013.

     Seven of 10 industries in the benchmark gauge rose on trading volume 50 percent higher than the 30-day average=.

     Canadian housing starts rose 0.5 percent in September to a seasonally adjusted 197,343 units, close to the 198,000 median forecast of economists surveyed by Bloomberg.

     Penn West Petroleum fell 2.4 percent to C$6.21 and Bellatrix Exploration lost 5.1 percent to C$6.17. Energy producers dropped 1 percent as a group for a seventh straight day of declines, the longest since August 2011.

US

By Oliver Renick

     Oct. 8 (Bloomberg) — The Federal Reserve’s hint that interest rates will stay near zero sent investors rushing back to the stock market, igniting the biggest rally this year for the Standard & Poor’s 500 Index.

     The S&P 500 surged 1.7 percent to 1,968.89 at 4 p.m. in New York. From trough to peak, the index moved 45 points today, the most since February, data compiled by Bloomberg show. The rally recouped yesterday’s slump, when the benchmark gauge sank 1.5 percent amid concern over global growth and weaker economic data from Germany. The Dow Jones Industrial Average climbed 274.83 points, or 1.6 percent, to 16,994.22 today, the most since Dec. 18.

     Minutes from the Federal Open Market Committee’s last meeting showed a number of policy makers said U.S. growth “might be slower than they expected if foreign economic growth came in weaker than anticipated.” In a statement following the September gathering, policy makers renewed their pledge to keep interest rates near zero for a “considerable time” after ending bond purchases this month. They also projected a steeper increase in borrowing costs next year.

     “The market was definitely set for more hawkish Fed minutes than what this was,” said Paul Zemsky, the New York- based head of multi-asset strategies at Voya Investment Management LLC, which oversees $213 billion. “There was this concern that the Fed was on this locked-in tightening path. The minutes today show they are focusing on what’s going on overseas and how the dollar was affected by it.”

     U.S. stocks have lurched back and forth for the past week, driving a measure of 10-day volatility to the highest level since April, according to data compiled by Bloomberg. The last time the S&P 500 had back-to-back moves of at least 1.5 percent in opposite directions was in December 2011.

     The Chicago Board Options Exchange Volatility Index sank 12 percent to 15.11 today, the biggest drop since July. The gauge known as the VIX jumped 11 percent yesterday to the highest since March.

     The U.S. equities benchmark began its rebound today after S&P 500 futures approached 1,918, a two-month low and a level seen as support by some technical analysts.

     “The overall reaction was they aren’t going to raise rates a lot sooner and didn’t seem hawkish,” Joe Bell, a senior equity analyst at Cincinnati-based Schaeffer’s Investment Research Inc., said by phone. “This is really a reflection of the fact the market has been extremely volatile right now and this is extending that idea.”

     Among stocks moving, Costco Wholesale Corp. gained 2.8 percent after saying profit topped forecasts. Merck & Co. and UnitedHealth Group Inc. each jumped 2.9 percent to pace gains in the Dow. Apple Inc. rallied 2.1 percent to send the Nasdaq 100 Index higher by 2.1 percent, its best advance in a year. Alcoa Inc. rose 1.6 percent at 4:27 p.m. in New York after reporting profit that topped analysts’ estimates.

     The S&P 500 sank 1.5 percent yesterday to the lowest since Aug. 12 after the International Monetary Fund cut economic- growth forecasts and warned of “frothy” equities. European stocks today tumbled to a two-month low on concern that equity valuations have overshot the potential for economic growth and earnings.

     The U.S. gauge has been resilient this year, with no losing streak longer than three days. The index has not fallen more than 10 percent in three years and is up 6.5 percent in 2014.

     The Russell 2000 index jumped 1.9 percent, its best gain since June. The small-cap gauge had fallen more than 10 percent from its March record through yesterday as investors sold speculative shares.

     Alcoa Inc. unofficially started the earnings season after the markets closed today. The largest U.S. aluminum producer’s results beat estimates after metal prices rose amid higher aerospace and auto demand.

     Profit at companies in the S&P 500 rose 4.9 percent in the July-September period, according to the average estimate of analysts in a Bloomberg survey.

     The benchmark index fell 3.3 percent in the past month through yesterday, the worst pre-earnings performance since 2009. The gauge has averaged a 2.2 percent gain in that period since the bull market began.

     Costco rose 2.8 percent to $128.73. The largest U.S. warehouse-club chain posted fiscal fourth-quarter profit that topped analysts’ estimates as sales at its established stores increased.

     Yum! Brands Inc.  gained 1.5 percent to $70.74. The owner of the KFC and Taco Bell fast-food chains reduced its forecast for profit this year as another food-supplier probe hurts sales in its China division. Adjusted profit in the last quarter topped estimates.

     Symantec gained 3.5 percent to $24.01 after people familiar with the matter said the software company is in advanced talks to break up its business into two entities — one offering security programs and another focusing on data storage.

     Energy producers in the gauge advanced 1 percent, reversing a drop of 1.7 percent after U.S. crude plunged to a 17-month low and Brent oil slid into a bear market.

     Monsanto Co. climbed 1.8 percent to $109.73. The world’s largest seed company forecast fiscal 2015 earnings that trailed analysts’ expectations as tumbling grain prices leave farmers with less to spend.

     Sears Holdings Corp. dropped 4.5 percent to $28.85. Three of the biggest insurance firms for the retailer’s suppliers are seeking to reduce coverage, prompting at least one medium-sized vendor to halt shipments to the department-store chain, people with knowledge of the matter said.

     The Bloomberg U.S. Airlines Index slid 2 percent. The gauge has fallen 6.7 percent during a three-day losing streak as concern about the spread of the Ebola virus weighed on travel- related stocks. Delta Air Lines lost 1.3 percent.

     The U.S. will begin Ebola screenings at five U.S. airports for some passengers from three West African nations most stricken by the disease, according to the White House.

 

Have a wonderful evening everyone.

Be magnificent!

“In oneself lies the whole world and if you know how to look and learn, the door is there and the key is in your hand. Nobody on earth can give you either the key or the door to open, exept yourself.” Jiddu Krishnamurti 

 

As ever,

 

Karen

“Each day provides its own gifts.” Marcus Aurelius

 

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 today, I will be writing the newsletter of her behalf.

PHOTOS OF THE DAY

A Lilac-breasted roller sits on a branch in the Naboisho Conservancy in Kenya. Goran Tomasevic/Reuters

A patron looks at Heinrich Campendonk’s ‘Harlequin and Columbine’ at the ‘From Van Gogh to Kandinsky: Impressionism to Expressionism’ exhibit at the Museum of Fine Arts in Montreal, Canada. The exhibit runs from Oct. 11 to Jan. 25. Ryan Remiorz/The Canadian 

Market Closes for October 7^th, 2014    

Market Index	Close	Change
Dow Jones	16719.33	-272.58
		-1.60%
S&P 500	1940.17	-24.65   -1.25%
NASDAQ	4385.203	-69.599   -1.56%
TSX	14584.08	-159.04
		-1.08%

International Markets

Market Index	Close	Change
NIKKEI	15783.83	-107.12
		-0.67%
HANG SENG	23422.52	+107.48
		+0.46%
SENSEX	26271.97	-296.02
		-1.11%
FTSE 100	6495.58	-68.07
		-1.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.032	2.089
CND. 30 Year Bond	2.555	2.597
U.S.    10 Year Bond	2.3427	2.4160
U.S. 30 Year Bond	3.0488	3.1200

Currencies

BOC Close	Today	Previous
Canadian $	0.89510	0.89811
US $	1.11720	1.11346
Euro Rate 1 Euro=		Inverse
Canadian $	1.41568	0.70637
US $	1.26711	0.78920

Commodities

Gold	Close	Previous
London Gold Fix	1210.43	1207.28
Oil	Close	Previous
WTI Crude Future	89.15	90.34

Market Commentary:

Canada

By Eric Lam

     Oct. 7 (Bloomberg) — Canadian stocks fell to a four month low as the International Monetary Fund cut its outlook for global growth and lower oil prices dragged down energy shares.

     Canadian National Railway Co. and Canadian Pacific Railway Ltd. sank more than 3 percent after a train carrying petroleum derailed in Saskatchewan. Pacific Rubiales Energy Corp. and Athabasca Oil Corp. retreated at least 4.8 percent as crude in New York traded at a 17-month low. Lundin Mining Corp. lost 2.1 percent after agreeing to buy a controlling stake in the Candelaria copper mining complex in Chile from Freeport-McMoRan Inc. for at least $1.8 billion.

     The Standard & Poor’s/TSX Composite Index fell 166.67 points, or 1.1 percent, to 14,576.45 at 4 p.m. in Toronto, the lowest close since May 20. While the equity gauge is still up 7 percent this year, it has posted losses for the past five weeks. Trading volume was 17 percent higher than the 30-day average.

     The world economy will grow 3.8 percent next year, compared with a July forecast for 4 percent, the IMF said. Financial markets in advanced economies may be overheating after a sustained period of near-zero interest rates, raising the risk of a correction in 2014.

     Canadian building permits plunged 27 percent in August from a record, led by lower intentions for medical buildings in Quebec and multiple-unit housing in Ontario.

     Canadian National sank 3.2 percent to C$75.26, the biggest decline since December, and Canadian Pacific slumped 3.1 percent to C$231.56. A Canadian National train carrying petroleum products and toxic material derailed near the village of Clair in Saskatchewan. Six of the 26 cars in the train were carrying dangerous goods, including petroleum distillate, which caught fire, Jim Feeny, a company spokesman, said by phone.

     Industrial stocks plunged 2.3 percent as a group, the most in the S&P/TSX.

     Pacific Rubiales tumbled 5.1 percent to C$17 and Athabasca Oil slumped 4.8 percent to C$4.98 as oil producers retreated 1.5 percent as a group. Nine of 10 industries in the S&P/TSX retreated.

     West Texas Intermediate for November delivery fell 1.7 percent to $88.85 a barrel on the New York Mercantile Exchange.

 US

 By Oliver Renick and Lu Wang

     Oct. 7 (Bloomberg) — Stocks tumbled and bonds rallied, sending yields to the lowest since May 2013, as the International Monetary Fund cut its global outlook and German industrial production plunged. Oil slid to a 17-month low.

     The Standard & Poor’s 500 Index fell 1.5 percent to 1,935.10 at 4 p.m. in New York, the lowest level since Aug. 12. The Dow Jones Industrial Average lost 1.6 percent, the most since July. The yield on 30-year Treasuries retreated 8 basis points to 3.05 percent as investors sought safety. Oil tumbled 1.7 percent to the lowest since April 2013, while gold futures climbed 0.4 percent. Volatility rose, with the VIX jumping to the highest since March.

     The IMF cut its outlook for global growth in 2015 and warned about the risks of rising geopolitical tensions and a financial-market correction as stocks reach “frothy” levels. German industrial production dropped 4 percent in August in the biggest decline since 2009. The Federal Reserve releases minutes of its last meeting tomorrow, when Alcoa Inc. unofficially starts the U.S. earnings season.

     “People get worried when they hear the IMF talk about growth prospects around the world falling,” Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management LLC, said in a phone interview. “The economic data from Europe is not good, some of the steam is getting let out of the economy. We don’t have earnings data to drive us yet this week and let’s face it, that’s the meat and potatoes of the market.”

     The S&P 500 fell through its average price for the past 100 days in morning trading. Losses accelerated in the afternoon as futures contracts expiring in December slipped below 1,940, a level where two previous declines had ended earlier today.

     The world economy will grow 3.8 percent next year, compared with a July forecast for 4 percent, after a 3.3 percent expansion this year, the Washington-based IMF said. U.S. growth is helping lead a worldwide acceleration that’s weaker than the fund predicted 2 1/2 months ago as the outlooks for the euro area, Brazil, Russia and Japan deteriorate.

     The IMF predicted the U.S. economy will grow 2.2 percent this year, compared with a 1.7 percent projection in July.

     According to the IMF’s report, a sustained period of policy interest rates near zero in advanced economies has raised the risk that some financial markets may be overheating.

     “Downside risks related to an equity price correction in 2014 have also risen, consistent with the notion that some valuations could be frothy,” the IMF said without naming specific markets.

     The report comes three months after the Fed said prices were stretched in some small-cap and biotechnology stocks. Since then, the Nasdaq Biotechnology Index has rallied almost 6 percent while the Russell 2000 Index last week entered a correction, falling more than 10 percent from a record in March. The Russell 2000 lost 1.6 percent today, the most since July 31.

     “We don’t share the view of a frothy market,” Frederic Dickson, who helps oversee $45 billion as the chief investment strategist of D.A. Davidson & Co., said by phone from Baltimore. “Where there has been froth in the market, it’s been with some high-flying, small-cap, illiquid stocks that have taken a beating in the last three months.”

     With a valuation of almost 18 times earnings, the S&P 500 is at the same multiple as in October 2007, the beginning of the last bear market. Compared with the dot-com bubble, the S&P 500’s valuation is about 60 percent below the level from 1999.

     Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., said today at the Fortune’s Most Powerful Women Summit that stocks are now “in a zone of reasonableness.”

     The S&P 500 rose to a record on Sept. 18. The gauge has not fallen four straight days this year, and has not slid more than 10 percent in three years. The index has retreated 3.8 percent since its all-time high as the Fed remains on track to end bond purchases this month, trimming its gain for the year to 4.7 percent. The Dow is up 0.9 percent for the year.

     The Federal Open Market Committee will release minutes from its Sept. 16-17 meeting tomorrow. Investors have been concerned the central bank may increase interest rates sooner than anticipated as the U.S. economy gains strength.

     Forecasts for the Fed to raise rates in mid-2015 are “reasonable” as policy makers wait for unemployment to fall further and inflation to rise, New York Fed President William C. Dudley said today in a speech in Troy, New York.

     Investors will also turn to corporate profits for clues on the strength of the U.S. economy. Profit at companies in the S&P 500 rose 4.9 percent in the July-September period, according to the average estimate of analysts in a Bloomberg survey.

     AGCO Corp. sank 11 percent to lead industrial shares lower today. The world’s third-largest maker of agricultural equipment cut its forecast because of lower sales in all regions and the stronger dollar. The Dow Jones Transportation Average retreated 2.5 percent to an almost two-month low.

     The Chicago Board Options Exchange Volatility Index rose 11 percent to 17.20 today, the highest level since March 14. The gauge known as the VIX jumped 36 percent in September, the most since July.

     “It’s definitely a risk-off day with ugly European data and growth concerns and I think we’re seeing some of that negative sentiment just getting ahead of itself here,” Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC, said by phone.

     The Stoxx Europe 600 Index dropped 1.5 percent to the lowest level since Aug. 15, after advancing in the past two days. Travel and leisure companies declined the most, after a Madrid nursing assistant became the first person outside Africa to be diagnosed with Ebola.

     Rio Tinto Plc added 0.8 percent, paring an earlier rally of 6.2 percent, as Glencore Plc abandoned a bid for the company after a July offer to create the world’s largest miner was rebuffed. Rio Tinto said today it has had no further contact over a potential deal. Glencore fell 2.5 percent and Anglo American Plc gained 2 percent.

     “A combination of not-perfect economic data and some geopolitical risk has put doubt in some investors’ minds and that brings some volatility,” Dan Curtin, the Boston-based global investment specialist at JP Morgan Private Bank, said in a phone interview. “The dollar surge, Hong Kong protests, Ebola scare and weakening oil prices, somewhere circled together in those things is the root of this recent pullback.

     Treasuries rose as the U.S. sale of $27 billion of three- year notes drew the strongest demand since February amid concern global economic growth may be slowing. The notes yielded 0.994 percent at the auction, compared with a forecast of 1.004 percent in a Bloomberg News survey of six of the Federal Reserve’s 22 primary dealers.

     The U.S. will sell $21 billion in 10-year notes tomorrow and $13 billion in 30-year debt the next day.

     The benchmark 10-year yield dropped 8 basis points to 2.34 percent, the lowest level since August.

     West Texas Intermediate oil fell to $88.85 a barrel before a government report that may show U.S. inventories increased last week. Brent crude lost 0.7 percent to $92.11, the lowest since June 2012.

     U.S. crude inventories expanded by 2 million barrels in the week ended Oct. 3, a Bloomberg News survey showed before Energy Information Administration data tomorrow. The EIA cut its 2014 and 2015 crude price forecasts today because of rising output and reduced demand.

     Gold rose for a second day as the dollar’s decline boosted the metal’s appeal as an alternative investment. Futures added 0.4 percent to $1,212.4 an ounce, after rallying 1.2 percent yesterday.

     The Bloomberg Dollar Spot Index fell 0.2 percent, after dropping 0.9 percent yesterday. The gauge has rallied for seven weeks and closed at a four-year high on Oct. 3 as investors speculated on the timing of an interest-rate increase by the Fed.

     The yen strengthened against most of its 16 major peers on speculation officials are growing uncomfortable with the pace of its depreciation. Bank of Japan Governor Haruhiko Kuroda said the central bank will closely monitor the exchange rate and Prime Minister Shinzo Abe said its weakness is hurting small companies and households.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Health is the greatest gift,

contentment the greatest wealth,

faithfulness the best relationship”

Buddha

As ever,

 

Karen

“Put your heart, mind, and soul into even your smallest acts. This is the secret of success.” Swami Sivananda 

 

 

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 today, I will be writing the newsletter of her behalf.

PHOTOS OF THE DAY

A member of the Samaritan sect decorates a traditional hut known as a sukkah with fruits and vegetables on Mount Gerizim, on the outskirts of the West Bank City of Nablus. A sukkah is a ritual hut used during the week-long Jewish holiday of Sukkot which begins Monday at sundown. The Samaritans, who trace their roots to the northern Kingdom of Israel in what is now the northern West Bank, observe religious practices similar to those of Judaism. Abed Omar Qusini/Reuters

Exhibition curator Stephanie Stepanek talks about two paintings in the new exhibit ‘Goya: Order and Disorder’ during a press preview of works by the Spanish painter Francisco Goya at the Museum of Fine Arts in Boston, Massachusetts. The two paintings are portraits of the Duchess and Duke of Alba. Brian Snyder/Reuters

Market Closes for October 6^th, 2014    

Market Index	Close	Change
Dow Jones	16991.91	-17.78
		-0.10%
S&P 500	1964.82	-3.08   -0.16%
NASDAQ	4454.801	-20.823   -0.47%
TSX	14743.12	-46.66
		-0.32%

International Markets

Market Index	Close	Change
NIKKEI	15890.95	+182.30
		+1.16%
HANG SENG	23315.04	+250.48
		+1.09%
SENSEX	26567.99	-62.52
		-0.23%
FTSE 100	6563.65	+35.74
		+0.55%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.089	2.096
CND. 30 Year Bond	2.597	2.614
U.S.    10 Year Bond	2.4160	2.4358
U.S. 30 Year Bond	3.1200	3.1273

Currencies

BOC Close	Today	Previous
Canadian $	0.89811	0.88937
US $	1.11346	1.12440
Euro Rate 1 Euro=		Inverse
Canadian $	1.40928	0.70958
US $	1.26568	0.79009

Commodities

Gold	Close	Previous
London Gold Fix	1207.28	1190.95
Oil	Close	Previous
WTI Crude Future	90.34	89.74

Market Commentary:

Canada

By Eric Lam

     Oct. 6 (Bloomberg) — Canadian stocks fell to a four-month low as declines among industrial shares and energy producers offset an advance in gold miners.

     Finning International Inc. tumbled 3.1 percent after analysts at Canaccord Genuity Corp. cut their rating for the stock to a hold from a buy. Air Canada jumped 3.9 percent after reporting gains in capacity and traffic in September. Torex Gold Resources Inc. rose 3.8 percent as gold increased from the lowest price this year.

     The Standard & Poor’s/TSX Composite Index fell 46.66 points, or 0.3 percent, to 14,743.12 at 4 p.m. in Toronto, the lowest close since June 3. The equity gauge has risen 8.2 percent this year.

     Eight of 10 industries in the benchmark gauge declined on trading volume 3.6 percent below the 30-day average today.

     Energy stocks fell 0.4 percent as a group, erasing earlier gains for a fifth straight decline. Oil rebounded from declines after gasoline futures climbed on reports that units at Irving Oil Corp.’s Saint John, New Brunswick, refinery will be shut for unplanned repairs through Nov. 20.

     The Canadian plant has the capacity to process 298,800 barrels a day of oil and exports over half of its refined products to the U.S. Northeast. The refinery will keep its largest fluid catalyst cracker closed, according to two people familiar with the repairs.

     Brent crude earlier fell to a 27-month low after Saudi Arabia cut its oil prices to all destinations, prompting speculation the world’s biggest exporter won’t lead supply cuts by the Organization of Petroleum Exporting Countries.

     Air Canada soared 3.9 percent to C$8.18 after reporting a system load factor of 84.7 percent in September, compared with 83.2 percent a year ago, on higher system capacity. Load factor is a measure of airline efficiency relative to capacity.

     Postmedia Network Canada Corp., operator of the National Post, jumped 11 percent to C$2.50 after agreeing to buy 175 newspapers and trade publications for C$316 million ($282 million) from Quebecor Inc.

     The sale includes English-language publications Toronto Sun and Calgary Sun, as well as the Canoe.com website and real- estate properties.

US

By Oliver Renick

     Oct. 6 (Bloomberg) — U.S. stocks fell, with the Standard & Poor’s 500 Index halting a two-day advance, as small-cap shares resumed a selloff and investors awaited the start of corporate earnings season to assess the strength of the economy.

     Micron Technology Inc. fell 4 percent after Samsung Electronics Co. said it will spend $15 billion building a chip plant in South Korea. GT Advanced Technologies Inc. sank 93 percent after the company filed for bankruptcy. Hewlett-Packard Co. jumped 4.7 percent after saying it will split into two companies. CareFusion Corp. surged 23 percent as Becton, Dickinson & Co. agreed to buy the company for $12.2 billion.

     The S&P 500 fell 0.2 percent to 1,964.84 at 4 p.m. in New York, erasing an earlier 0.5 percent gain. The Dow Jones Industrial Average retreated 17.72 points, or 0.1 percent, to 16,991.97. The Russell 2000 Index of small companies dropped 0.9 percent after the gauge capped its fifth straight weekly decline.

     “We see stocks trading a little nervously today and this week before third-quarter earnings,” Jim Russell, a senior equity strategist at U.S. Bank Wealth Management in Cincinnati, said in a phone interview. “We’re anxious to see how company managements comment on the strong U.S. dollar and overseas revenue.”

     Alcoa Inc. unofficially starts the U.S. earnings season on Oct. 8. Eight other S&P 500 companies will post results this week, including  Yum! Brands Inc. and PepsiCo Inc. Profit at companies in the gauge rose 4.9 percent in the July-September period, according to the average estimate of analysts in a Bloomberg survey.

     The S&P 500 climbed 1.1 percent on Oct. 3, paring a weekly decline, after data showed the U.S. jobless rate declined to a six-year low and employers hired more workers than economists had estimated. The dollar strengthened last week to a four-year high before weakening today.

     Stocks tumbled last week amid signs of economic weakness in Europe and geopolitical turmoil as the Federal Reserve is on course to end its bond-buying program this month. Investors have been concerned the central bank may raise interest rates sooner than anticipated as the U.S. economy gains strength.

     The Federal Open Market Committee releases minutes from its Sept. 16-17 meeting on Oct. 8.

     Selling last week was heaviest among small-cap stocks, with the Russell 2000 sliding 1.3 percent. The fifth weekly drop was its longest streak since 2008. The gauge closed Oct. 1 more than 10 percent below its record from March, meeting the common definition of a correction, before rallying in the final two days of the week.

     Losses today came as GT Advanced Technologies plunged 93 percent to less than $1. The maker of lab-grown sapphire used in mobile-device screens and parts supplier for Apple Inc. said it would continue operations during reorganization.

     “That came as a big sucker punch out of the blue,” said Michael Block, chief equity strategist at Rhino Trading Partners LLC in New York. “It underscores how fragile any rally in the small caps is at this juncture. The small caps are behaving like frightened bunnies.”

     About 6.3 billion shares changed hands on U.S. exchanges today, 9.4 percent below the three-month average. Last week saw the busiest trading in six months for U.S. equities, with an average 7.2 billion shares moving each day.

     The Chicago Board Options Exchange Volatility Index rose 5.2 percent to 15.31 today. The gauge known as the VIX slid 2 percent last week.

     Seven of the 10 main industries in the S&P 500 retreated today, with consumer-discretionary stocks sliding 0.6 percent for the biggest loss. Phone stocks jumped 0.4 percent to pace gains.

     H&R Block Inc. fell 5.6 percent for the biggest decline in the S&P 500. The tax preparer said the sale of its banking unit to BofI Federal Bank is being slowed by a regulatory approval process. The firm had predicted the deal would close before tax season begins.

     Micron Technology fell 4 percent and SanDisk Corp. dropped 2.7 percent after Samsung announced plans for the new chip factory.

     Hewlett-Packard jumped 4.7 percent after announcing a split separating its corporate hardware and services operations, which will be led by current chief Meg Whitman, from the personal- computer and printer business. The latter will be led by Dion Weisler, currently vice president in charge of those operations.

     CareFusion soared 23 percent. Becton, Dickinson agreed to pay $58 a share for the San Diego-based company that provides drug management and patient safety services to hospitals. That’s a 26 percent premium to its Oct. 3 closing price. Becton, Dickinson climbed 7.9 percent.

     Durata Therapeutics Inc. rallied 75 percent as Actavis Plc announced a deal to acquire the maker of a skin-infection treatment.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“In oneself lies the whole world and if you know how to look and learn, the door is there and the key is in your hand. Nobody on earth can give you either the key or the door to open, except yourself.”  Jiddu Krishnamurti

 

As ever,

 

Karen

 

“The purpose of our lives is to be happy.” Dalai Lama

 

 Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7