Author: Carolann

Dear Friends,

Tangents:

We were watching BBC’s program Hard Talk last night and it concerned climate change, specifically how it is affecting arctic animals.  It is pretty concerning.  There were not even any ice floes this past summer for the first time.  Normally, the polar bears tread the ice floes to find food.  Now they are scavenging on land.  And it also showed huge numbers of walruses clustered together on the shore, when normally they would be in the icy waters.  Their habitat is changing irrevocably.  The ice in winter is now too thin for the animals to move around on or for the indigenous peoples to walk on to fish in ice holes.  And the Russian government is preparing to expand its deep sea drilling exploration for oil and gas in the area, further disrupting the way of life.  The news that followed the program showed the fires raging in California and the flooding in Mexico, India and other places around the word – occurring right now.

I attended a lecture on climate change given by Al Gore a few years ago when he first published his book on the subject, An Inconvenient Truth.   It would appear his observations and predictions are accurate.   It’s pretty clear that the consequences of ignoring the triggers will be catastrophic for the planet; we need to ramp up political pressure for change.

Photos of the Day –August 27th, 2013

Sacramento Metropolitan firefighters monitor the Rim Fire near Camp Mather, Calif. The fire has burned 160,980 acres on the northwest side of Yosemite National Park. Max Whittaker/Reuters

A vender moves piles of bananas to a shallow area on a street over flowed with rainwater in Yangon, Myanmar. Gemunu Amarasinghe/AP

Market Closes for August 27^th, 2013

Market  Index	Close	Change
Dow  Jones	14776.13	-170.33    -1.14%
S&P 500	1630.48	-26.30    -1.59%
NASDAQ	3578.524	-79.047    -2.16%
TSX	12591.21	-169.09
		-1.33%

International Markets

Market  Index	Close	Change
NIKKEI	13542.37	-93.91
		-0.69%
HANG  SENG	21874.77	-130.55
		-0.59%
SENSEX	17968.08	-590.05
		-3.18%
FTSE 100	6440.97	-51.13
		-0.79%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.563	2.650
CND.   30 Year Bond	3.040	3.120
U.S.   10 Year Bond	2.7087	2.7853
U.S.   30 Year Bond	3.6916	3.7666

Currencies

BOC Close	Today	Previous
Canadian $	0.95434	0.95204
US   $	1.04784	1.05038
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40330	0.71261
US  $	1.33889	0.74689

Commodities

Gold	Close	Previous
London Gold   Fix	1417.39	1402.35
Oil	Close	Previous
WTI Crude Future	109.01	105.92
BRENT	109.359	109.359

Market Commentary:

Canada

By Alex Barinka

Aug. 27 (Bloomberg) — Canadian stocks fell, giving the benchmark index its biggest drop since June, on growing tension over possible military action in Syria.

Raw-materials companies fell 3.7 percent, reversing an earlier rally of as much as 1.3 percent amid a surge in gold prices. Energy shares also erased an advance amid a jump in oil.

OceanaGold Corp. and Niko Resources Ltd. tumbled more than 7.4 percent. Bank of Nova Scotia dropped 1.7 percent while Bank of Montreal increased 0.4 percent as investors weighed quarterly earnings reports.

The S&P/TSX fell 169.09 points, or 1.3 percent, to 12,591.21 at 4 p.m. in Toronto, the most since June 24. The index trimmed its gain for the month to 0.8 percent. Trading volume was 4.7 percent higher than the 30-day average at this time of the day.

“The gold stocks are the surprise,” John Kinsey, a portfolio manager with Caldwell Securities Ltd. in Toronto, said in a phone interview. The firm manages about $1 billion. “They were up this morning and they have all turned around now. If you are nervous about the market, you tend to sell the ones where you have a profit. It has been a pretty good month for the gold stocks and the oil stocks.”

The benchmark gauge fell yesterday, erasing an earlier gain, after U.S. Secretary of State John Kerry said the nation will hold Syria’s government accountable for using chemical weapons, fanning concern unrest may disrupt Middle East oil supplies.

President Barack Obama is under growing pressure from U.S. allies and Congress to go beyond denunciations of Syria and take military action after the Aug. 21 attack that opposition groups say killed more than 1,300 people. Iran’s Foreign Ministry warned that a U.S. attack on Syria would drag the whole region into conflict.

All 10 industries in the benchmark index fell. Technology companies slid 2.6 percent, with CGI Group Inc. dropping 3.3 percent to C$34.45 and BlackBerry Ltd. declining 3.8 percent to C$10.54.

Gold shares dropped after erasing an early rally. The S&P/TSX Gold Index dropped 4.2 percent, paring its gain for the month to 14 percent. The metal’s price jumped to the highest since May as the Syrian political tension increased demand for the precious metal as a store of value.

OceanaGold slid 9.4 percent to C$1.94. Alacer Gold Corp. tumbled 5.1 percent to C$3.32.

Energy companies lost 0.2 percent, trimming their advance for the year to 2.6 percent. Niko Resources declined 7.4 percent to C$5.13. West Texas Intermediate crude rose to an 18-month high on speculation that tension in Syria will disrupt Middle East supplies.

The S&P/TSX Commercial Banks Index fell 0.9 percent even as two of its eight members reported third-quarter earnings that beat analysts’ estimates.

Bank of Montreal, the nation’s fourth-largest lender by assets, increased 0.4 percent to C$66.05, the highest close since 2007. Profit topped analysts’ estimates on record consumer lending and lower provisions for bad loans.

Bank of Nova Scotia fell 1.7 percent to C$57.71. Canada’s third-largest lender by assets said net income for the period fell 14 percent from a year earlier when the bank had a one-time gain. Earnings from its global banking and markets business slipped 3 percent in the latest quarter.

National Bank of Canada reports results tomorrow, followed by Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank on Aug. 29. The country’s six biggest banks are expected to post average per-share profit growth of 3.3 percent excluding some items, according to Robert Sedran, an analyst with CIBC.

US

By Nick Taborek and Lu Wang

Aug. 27 (Bloomberg) — U.S. stocks fell, with the Standard & Poor’s 500 Index dropping the most since June 20, as growing tension over possible military action in Syria overshadowed a report showing consumer confidence unexpectedly rose in August.

Financial and technology shares lost at least 2 percent to lead declines among 10 S&P 500 main industries. American Express Co. and Microsoft Corp. sank more than 2.3 percent. Southwest Airlines Co. tumbled 3.5 percent amid concern surging oil prices will boost fuel costs. D.R. Horton Inc. fell 3.8 percent as a report showed residential real-estate prices increased in June at a slower pace.

The S&P 500 slid 1.6 percent to 1,630.48 at 4 p.m. in New York, the lowest closing level since July 3 and 4.6 percent below the latest record on Aug. 2. The Dow Jones Industrial Average dropped 170.33 points, or 1.1 percent, to 14,776.13, The gauge has fallen eight of the past 10 sessions to the lowest since June 25.

“Everybody’s waiting to see what’s going to happen,” Randy Bateman, who oversees $15 billion as chief investment officer of Huntington Asset Advisors in Columbus, Ohio, said by phone. “Is this going to escalate? Energy prices, if they rise a whole lot, could that mitigate all the strength we’ve been seeing lately in the economy? If we’ve got housing prices that start to rise at the same time we have food and fuel increasing, we could see inflation start to rise and that could impact Fed policy.”

The benchmark gauge fell 0.4 percent yesterday, reversing an early gain of as much as 0.4 percent after Secretary of State John Kerry said the U.S. will hold Syria’s government accountable for using chemical weapons, fanning concern unrest may disrupt Middle East oil supplies. Crude rose to an 18-month high today.

The U.S., France and Britain stepped closer today to a military strike against Syria, laying the legal groundwork to justify action, moving forces into place and rounding up allies in the region. Defense Secretary Chuck Hagel told the BBC that the U.S. has “assets in place” and forces are “ready to go.”

The introduction of troops isn’t being considered, nor is imposition of a no-fly zone over Syria, according to a U.S. official who asked for anonymity to discuss internal deliberations.

Growing speculation the Federal Reserve will reduce its monthly bond buying has also weighed on equities in recent weeks. Minutes of the central bank’s July meeting released Aug. 21 showed policy makers supported stimulus cuts this year if the economy improves.

Data today showed consumer confidence unexpectedly increased in August as Americans grew more optimistic about the outlook for the economy. A report from the Fed Bank of Richmond showed the overall business activity index for mid-Atlantic region, which accounts for 9.1 percent of gross domestic product, rose faster than estimated last month.

Investors are also watching the political wrangling over the approaching limit on federal spending. The U.S. government is expected to exhaust its ability to borrow funds in mid- October, when it will hit the statutory debt limit, according to an estimate from the Treasury Department in a letter to lawmakers released yesterday.

“It further adds to the degree of uncertainty that’s out there,” Bateman said.

Treasury Secretary Jacob J. Lew reiterated today that the Obama administration won’t negotiate over the debt limit, saying he thinks lawmakers understand the need to preserve the U.S.’s “rock-solid” pledge to meet its commitments.

House Speaker John Boehner said last month Republicans wouldn’t increase the debt ceiling “without real cuts in spending” that would achieve a further reduction in the deficit.

The Chicago Board Options Exchange Volatility Index, or VIX, jumped 12 percent to 16.72 today, headed for the highest close since June 28. The equity volatility gauge has surged 40 percent since a five-month low on Aug. 5.

Trading in U.S. exchanges is heading for the second-slowest month in at least five years, according to data compiled by Bloomberg. An average of about 5.5 billion shares changed hands each day this month. That’s about 60 million shares more than last August. About 6.2 billion shares traded today, in line with the three month average.

Today’s drop in the S&P 500 pushed the gauge below its average during the past 100 days for a second time this year, data compiled by Bloomberg show. The average measure, which is followed by some analysts who study charts to gauge the market’s trends, was last broken on a closing basis on June 24, when the index bottomed after a 5.8 percent retreat from its May peak.

The threshold stood near 1,638 recently.

All 10 main S&P 500 groups retreated. American Express fell 2.3 percent to $71.91, the lowest since May 14. Microsoft dropped 2.6 percent to $33.26 for the steepest slide in the Dow.

Airlines dropped as West Texas Intermediate crude rose to a the  highest since February 2012 amid the tension in Syria. The Bloomberg U.S. Airlines Index tumbled 5.1 percent to the lowest since June, as all 10 members retreated.

Southwest dropped 3.5 percent to $12.80. United Continental Holdings Inc. plunged 7.2 percent to $27.71 and Delta Air Lines Inc. slumped 5.7 percent to $19.11.

The S&P Supercomposite Homebuilding Index slipped 2.5 percent. The gauge has plunged 28 percent since a May high amid signs that the rate of improvement in the housing market is cooling.

Residential real-estate prices increased in June at a slower pace, the S&P/Case-Shiller index showed today. Data last week revealed a larger-than-forecast drop in sales of new homes in July. D.R. Horton dropped 3.8 percent to $17.99, the lowest in almost 13 months, while PulteGroup Inc. slid 3.5 percent to $15.59.

Best Buy Co. lost 2.2 percent to $35.02. Richard Schulze, the electronics retailer’s founder and largest shareholder, said he plans to sell an undisclosed amount of its stock to diversify his assets and raise money.

DSW Inc. jumped 7.9 percent to a record $87.75. The shoe retailer reported second-quarter profit excluding some items of 97 cents a share, beating the average estimate of 79 cents from analysts in a Bloomberg survey.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

We are trying to understand violence as a fact, not as an idea,

as a fact which exists in the human being, and the human being is myself.

I must be in a state of mind that demands to see this thing right to the end

and at no point stops and says I will go no further.

Now it must be obvious to me that I am a violent human being.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

As a child my family’s menu consisted of

two choices: take it or leave it.

-Buddy Hackett, 1924-2003

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

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:

On this day in 1498, Michelangelo was commissioned to carve the Pietá; it is the only piece he ever signed.

Also on this day in 1946, Norma Jeane Baker signed a contract with 20^th Century FOX and officially changed her name to Marilyn Monroe.

On August 26^th, 1920,  Women’s Equality Day was established.  “Feminism is the radical concept that women are people.” –Cheris Kramarae & Paula Treichler.

Are all of us the same, I wonder, navigating our lives by interpreting the silences between words spoken, analyzing the returning echoes of our memory in order to chart the terrain, in order to make sense of the world around us?

-Tan Twan Eng, The Garden of Evening Mists

Photos of the Day –August 26th, 2013

Vadim Veligurov kisses Abi, a wild sparrow, during a walk near his grandmother’s house in the town of Minusinsk, Russia, August 22, 2013. In June Veligurov, found and brought the lost female baby bird to his grandmother’s house. The rescued sparrow, which was named Abi, didn’t fly away and since then has spent most her time with Veligurov. /Ilya Naymushin/Reuters

Pigeons sit on the arm of a retired man as he enjoys a walk in Enghien-les-Bains, north of Paris. France’s government, which has been meeting with labor union heads about retirement issues, neared a deal with trade unions to overhaul the pension system via a slight lengthening of working lives. Christian Hartmann/Reuters

Market Closes for August 26^th, 2013

Market  Index	Close	Change
Dow  Jones	14946.46	-64.05    -0.43%
S&P 500	1658.71	-4.79    -0.29%
NASDAQ	3657.571	-0.221    -0.01%
TSX	12764.59	+2.29
		+0.02%

International Markets

Market  Index	Close	Change
NIKKEI	13636.28	-24.27
		-0.18%
HANG  SENG	22005.32	+141.81
		+0.65%
SENSEX	18558.13	+38.69
		+0.21%
FTSE 100	6492.10	+45.23
		+0.70%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.650	2.692
CND.   30 Year Bond	3.120	3.162
U.S.   10 Year Bond	2.7853	2.8146
U.S.   30 Year Bond	3.7666	3.7916

Currencies

BOC Close	Today	Previous
Canadian $	0.95204	0.95292
US   $	1.05038	1.04941
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40435	0.71208
US  $	1.33699	0.74795

Commodities

Gold	Close	Previous
London Gold   Fix	1402.35	1397.75
Oil	Close	Previous
WTI Crude Future	105.92	106.57
BRENT	109.359	109.359

Market Commentary:

Canada

By Alex Barinka

Aug. 26 (Bloomberg) — Canadian stocks erased gains, sending the benchmark index lower after a two-day advance, as concern over Syria overshadowed a rally in commodity shares and speculation the U.S. Federal Reserve won’t reduce stimulus soon.

Paramount Resources Ltd. lost 2.8 percent as energy shares slid. Alacer Gold Corp. and Endeavour Silver Corp. climbed more than 4.1 percent to pace gains among commodity producers. Agrium Inc. and Potash Corp. of Saskatchewan Inc. jumped at least 2.4 percent as OAO Uralkali’s chief executive officer was detained in Belarus after the largest potash producer pulled out of a joint venture that controlled more than 40 percent of exports.

The Standard & Poor’s/TSX Composite Index fell 2 points, or less than 0.1 percent, to 12,760.30 at 4:00 p.m. in Toronto, erasing an earlier advance of 0.4 percent. The index has gained 2.2 percent in August. Trading volume was 20 percent lower than the 30-day average at this time of the day.

“Lots of people are in wait-and-see mode,” Brian Huen, managing partner with Red Sky Capital Management Ltd. in Toronto, said in a telephone interview. His firm manages C$220 million ($214 million). “They are going to be monitoring the data out of the U.S. very closely to see what the Fed is going to be doing. The materials index is up nicely.”

Stocks fell after U.S. Secretary of State John Kerry said the president will hold Syria’s government accountable for using chemical weapons. President Barack Obama is consulting with allies and members of Congress and “believes there must be accountability for those who have used the world’s most dangerous weapons,” Kerry said.

“By any standard it is inexcusable,” Kerry told reporters in Washington today, saying evidence makes it “undeniable” that Syrian President Bashar al-Assad’s regime was responsible for last week’s attack that the opposition blames for more than 1,300 deaths.

The S&P/TSX had gained as much as 0.4 percent earlier, led by rising commodity shares, as a report showing a drop in U.S. durable-goods orders spurred speculation the Fed won’t reduce stimulus soon. U.S. Commerce Department data showed bookings for goods meant to last at least three years decreased 7.3 percent, the most since August 2012.

Federal Reserve officials are weighing when to begin curbing bond purchases that they pledged to maintain until the job market improves. Minutes released on Aug. 21 showed policy makers were comfortable with Chairman Ben S. Bernanke’s plan to taper this year if the economy strengthens.

Nine of 10 industries fell as a decline in energy shares offset a 1.7 percent rally in raw-materials producers.

Energy companies dropped 0.4 percent, erasing an earlier advance of as much as 0.3 percent. West Texas Intermediate crude fell for the first time in three days, declining 0.5 percent.

Paramount Resources slid 2.8 percent to C$33.20. AltaGas Ltd. fell 0.2 percent to C$35.52.

Alacer rose 7 percent to C$3.50, the highest level since April. Iamgold Corp. climbed 1.6 percent to C$7.17. Endeavour Silver gained 4.1 percent to C$5.83. Silver futures jumped 1.2 percent, while gold was down 0.2 percent at $1,393.10 an ounce.

Potash producers rallied after Uralkali CEO Vladislav Baumgertner was charged with abusing his office as chairman of Belarusian Potash Co., the trading venture that Russia’s Uralkali and Belaruskali set up in 2005.

Agrium rose 3.3 percent to C$94.07. Potash Corp. gained 2.4 percent to C$32.10.

The S&P/TSX Commercial Banks Index increased 0.2 percent to a record high. Five of eight companies in the group rose today.

Canadian banks are scheduled to post earnings this week, with Bank of Montreal and Bank of Nova Scotia reporting tomorrow.

Canada Imperial Bank of Commerce climbed 1 percent to C$80.69. Bank of Montreal rose 0.9 percent to C$65.78. Toronto- Dominion rose 0.2 percent to a record C$88.96.

US

By Nick Taborek

Aug. 26 (Bloomberg) — U.S. stocks fell, with the Standard & Poor’s 500 Index’s halting two days of gains, after Secretary of State John Kerry said the president will hold Syria’s government accountable for using chemical weapons.

Tyson Foods Inc., the largest U.S. meat processor, slid 7.3 percent after Bank of America Corp. analysts cut their rating on the stock. Archer-Daniels-Midland Co., the largest corn processor, dropped 4.9 percent as hot, dry weather in the Midwest threatened to reduce crop harvests. Amgen Inc. jumped 7.7 percent after agreeing to buy cancer-treatment developer Onyx Pharmaceuticals Inc. in a $10.4 billion transaction.

The S&P 500 declined 0.4 percent to 1,656.78 at 4 p.m. in New York, erasing an earlier gain of as much as 0.4 percent. The Dow Jones Industrial Average lost 64.05 points, or 0.4 percent, to 15,946.46.

“If there’s going to be turmoil and then if there’s going to be some retaliation and affect U.S. assets, people get a little scared,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said in a phone interview. “It’s a bit of a pullback so people are probably taking some risk off the table.”

President Barack Obama is consulting with allies and members of Congress and “believes there must be accountability for those who have used the world’s most dangerous weapons,” Kerry said.

“By any standard it is inexcusable,” Kerry told reporters in Washington today, saying evidence makes it “undeniable” that Syrian President Bashar al-Assad’s regime was responsible for last week’s attack that the opposition blames for more than 1,300 deaths.

The S&P 500 spiked lower following the statements after earlier extending its first weekly gain since Aug. 2., as investors speculated whether a report showing durable-goods orders fell in July would delay stimulus cuts.

A Commerce Department report showed bookings for goods meant to last at least three years decreased 7.3 percent, the most since August 2012, after a 3.9 percent gain in June. Orders waned for aircraft and capital goods such as computers and electrical equipment.

“It’s another data point that indicates a slow recovery,” Eric Teal, who helps oversee $5 billion as the chief investment officer at First Citizens BancShares Inc. in Raleigh, North Carolina, said by phone. “Given that the Fed’s position is data dependent, then I think that the odds are increasing that there’ll be less tightening than more.”

Stocks rebounded last week after a data showing a plunge in sales of new homes eased concern that the Federal Reserve would curb stimulus efforts next month. Officials have been weighing whether the economy is strong enough to prompt a reduction in stimulus, which has helped propel the S&P 500 up as much as 153 percent from its March 2009 low.

Speculation about the stimulus has whipsawed stocks since May, when Chairman Ben S. Bernanke first indicated cuts could start this year. Sixty-five percent of economists in a Bloomberg Aug. 9-13 survey said the first reduction would come at the Sept. 17-18 meeting.

The Chicago Board Options Exchange Volatility Index, or VIX, rose 7.2 percent to 14.99 today, surging after Kerry’s comments to reverse an earlier drop of 0.6 percent. The equity volatility gauge has jumped 27 percent since Aug. 5.

Trading in U.S. exchanges is heading for the second-slowest month in at least five years, according to data compiled by Bloomberg. An average of about 5.5 billion shares have changed hands each day this month. That’s about 60 million shares more than last August. About 4.7 billion shares traded today, 24 percent below the three-month average.

Nine of 10 major groups in the S&P 500 fell. Shares in phone companies and consumer staples producers lost at least 1.1 percent to pace declines. Procter & Gamble Co. slid 1.8 percent to $78.54 for the steepest drop in the Dow. AT&T Inc. and Verizon Communications Inc. retreated 1.4 percent.

Tyson Foods dropped 7.3 percent to $29.17 for the steepest decline in the S&P 500. Ryan Oksenhendler and Bryan Spillane at Bank of America’s Merrill Lynch unit cut the shares to neutral, similar to a hold rating, from buy, after a 62 percent rally this year.

“Industry data indicate a steep increase in production,” the analysts wrote in a report today. “In our view, this is likely to cause industry margins to peak sooner than we expected.” They also cut Tyson’s 2014 profit estimates, citing lower chicken prices.

Archer-Daniels-Midland fell 4.9 percent to $34.50, while Kraft Foods Group Inc. declined 1.4 percent to $52.08, the lowest since May. Temperatures will average as much as 14 degrees Fahrenheit above normal during the next seven days, with little rain expected in the Midwest, T-Storm Weather LLC said in a note to clients today. Rainfall in July and August will be the least since 1936 in Iowa, Illinois and Indiana.

An S&P index of homebuilders added 0.5 percent, rebounding from a 3.1 percent drop on Aug. 23 following the new home-sales report. The gauge has lost 26 percent since climbing to near a six-year high on May 14, as rising interest rates have raised concern that the housing recovery could slow. Treasury 10-year yields retreated today.

KB Home rose 1.2 percent to $16.63 today and Toll Brothers Inc. advanced 0.8 percent to $31.43. Home Depot Inc., the largest U.S. home-improvement retailer, climbed 2.1 percent to $75.43 for the biggest increase in the Dow.

“The home industry is on firm footing,” Jim Russell, senior equity strategist for U.S. Bank Wealth Management, said in an interview from Cincinnati. His firm oversees $110 billion.

“We do think the homebuilders are going to be pretty much tied at the hip to the daily interest rate moves, and absolutely tied to what’s decided on the taper.”

Amgen gained 7.7 percent to a record $113.75 for the biggest gain in the S&P 500. The pharmaceuticals maker agreed to pay $125 a share for Onyx’s outstanding stock, the companies said in a statement yesterday. Onyx’s Kyprolis, approved last year for a rare blood cancer, may spur more than $3 billion in revenue by 2021, according to analyst estimates compiled by Bloomberg. Onyx jumped 5.6 percent to $123.49.

Anadarko Petroleum Corp. climbed 1.4 percent to $91.02. The oil explorer said in a statement yesterday it agreed to sell a 10 percent stake in a Mozambique gas field to ONGC Videsh Ltd., a unit of India’s biggest energy explorer, for $2.64 billion.

Facebook Inc. advanced 2 percent to $41.34. The market value of the world’s largest social network topped $100 billion at the close for the first time since its initial public offering in May 2012. The stock has more than doubled since falling to a record low of $17.73 in September.

TMS International Corp. jumped 12 percent to $17.48.

Chicago’s Pritzker family, owner of a controlling stake in Hyatt Hotels Corp., agreed to acquire the steel mill servicer for $690 million in cash. TMS is the largest producer of outsourced industrial services to steel mills in North America as measured by revenue.

Price gains of stocks in the S&P 500 are outpacing profits by the fastest rate in 14 years as the bull market extends beyond the average length of rallies since Harry S. Truman was president.

The benchmark gauge for U.S. equities has risen 14 percent relative to income over the past 12 months to 16 times earnings, according to data compiled by Bloomberg. Valuations last climbed this fast in the final year of the 1990s technology bubble, just before the index began a 49 percent tumble. The rally that started in March 2009 has now outlasted the average gain since 1946, the data show.

“Markets have been running away,” Robert Royle, who helps oversee $21 billion as manager of the North American Trust at Smith & Williamson Investment Management LLP in London, said by telephone on Aug. 20. “Everyone is hoping for a second-half recovery in fundamentals,” he said. “I am just not sure what will drive the recovery.”

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Man has accepted conflict as an innate part of daily existence

because he has accepted competition, jealousy, greed, acquisitiveness and aggression

as a natural way of life.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

Go to heaven for the climate, Hell for the company.

-Mark Twain, 1835-1910

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

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:

On this day 50 years ago – August 23^rd, 1963, The Beatles released She Loves You sung by Paul McCartney.  It became their best selling single in Great Britain.

Speaking of love, the story about Antoinette Tuff this week is truly inspirational and underscores the power of love.  She is the person who reached out to the gunman in the Atlanta-area elementary school who was intent on wreaking the kind of devastation that befell so many families in Newton, Connecticut last December.  She reached out to the young man with love and convinced him to lay down his weapons.  Incredibly, no one was hurt.  This is proof of the power of good over evil.  Good cannot be silenced.  It would be transformative for this planet of ours if we all approached our lives with the  same courage to do what Tuff did.  Tuff believed in the power of good over evil and her courage in reaching out to the young man with love saved not only the children in the school but probably that young man’s life as well, as she soothingly convinced him that he could be better.  I was listening to the radio in my car on the way home from the office when the recording of her interaction with him came on and I was mesmerized by it.  I thought about how the world would benefit and be so different if we all greeted every situation, from the mildly annoying to the utterly terrifying, with the same attitude as Antoinette Tuff’s.

There are in fact two things, science and opinion: the former begets knowledge, the latter ignorance. –Hippocrates.

Photos of the Day –August 23rd, 2013

In July 2013, the National Park Service began work on the Martin Luther King Jr. Memorial in Washington to remove a controversial inscription from the sculpture. It reads: ‘I was a drum major for justice, peace and righteousness.’ The truncated line was paraphrased from a sermon King delivered in 1968: ‘Yes, if you want to say that I was a drum major, say that I was a drum major for justice. Say that I was a drum major for peace. I was a drum major for righteousness. And all the other shallow things will not matter.’ J. Scott Applewhite/AP

The Rev. Bobby Turner of Columbus, Ohio, places his hand on the Martin Luther King Jr. Memorial, Aug. 22, 2013, in Washington. Carolyn Kaster/AP

Market Closes for August 23^rd, 2013

Market  Index	Close	Change
Dow  Jones	15010.51	+46.77    +0.31%
S&P 500	1663.50	+6.54    +0.39%
NASDAQ	3657.792	+19.085    +0.52%
TSX	12762.30	+87.95
		+0.69%

International Markets

Market  Index	Close	Change
NIKKEI	13660.55	+295.38
		+2.21%
HANG  SENG	21863.51	-31.89
		-0.15%
SENSEX	18519.44	+206.50
		+1.13%
FTSE 100	6492.10	+45.23
		+0.70%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.692	2.743
CND.   30 Year Bond	3.162	3.208
U.S.   10 Year Bond	2.8146	2.8844
U.S.   30 Year Bond	3.7916	3.8702

Currencies

BOC Close	Today	Previous
Canadian $	0.95292	0.95080
US   $	1.04941	1.05175
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40427	0.71212
US  $	1.33805	0.74736

Commodities

Gold	Close	Previous
London Gold   Fix	1397.75	1376.00
Oil	Close	Previous
WTI Crude Future	106.57	105.09
BRENT	109.359	109.359

Market Commentary:

Canada

By Eric Lam

Aug. 23 (Bloomberg) — Canadian stocks rose, closing at the highest level in five months, as gold producers surged after a plunge in U.S. new-home sales boosted speculation the Federal Reserve will maintain stimulus.

Alacer Gold Corp. and Iamgold Corp. rallied at least 5.9 percent as the metal traded at its highest in 11 weeks. Maple Leaf Foods Inc. jumped 7.8 percent as it agreed to sell a unit for C$645 million ($614 million). Penn West Petroleum Ltd. added 1.7 percent after cutting 25 percent of its workforce to reduce costs.

The Standard & Poor’s/TSX Composite Index rose 87.95 points, or 0.7 percent, to 12,762.30 at 4 p.m. in Toronto, the highest level since March 20. The index erased losses from earlier in the week to finish the five-day period 0.2 higher.

Sales of newly built homes in the U.S. plunged the most in more than three years last month. The July minutes of the Federal Open Market Committee showed policy makers are “supportive” of Chairman Ben S. Bernanke’s plan to begin scaling back the bank’s $85 billion a month bond purchases later this year. Central-bank stimulus has helped propel global equities higher.

“The data may have markets reassessing U.S. growth and when, or by how much, the Fed will taper quantitative easing,” said Andrew Grantham, an economist with CIBC World Markets in a note today.

The price of gold rallied on the housing data, briefly topping $1,400 an ounce to its highest level since June 7. The price of gold settled up 1.5 percent at $1,396.30.

The S&P/TSX Gold Index surged 2.7 percent to a four-month high. While the index has rallied 42 percent since June 26, it remains down 27 percent this year. Alacer Gold soared 7.2 percent to C$3.27 and Iamgold rallied 5.9 percent to C$7.06.

Raw-materials producers climbed 1.6 percent as a group for the biggest gain in the S&P/TSX, with all 10 industry groups advancing. Trading volume was 18 percent lower than the 30-day average.

Royal Bank of Canada, the nation’s largest lender, gained 1 percent to C$65.12 as Canada’s banks rose 0.8 percent to close at the highest this month. Bank of Montreal, scheduled to report earnings on Aug. 27, added 0.7 percent to C$65.20 for a fourth day of gains.

Maple Leaf, the Canadian food processor, jumped 7.8 percent, the most in almost five years, to C$14.44, after agreeing to sell its Rothsay animal-rendering business to Darling International.

Suncor Energy Inc. added 1.9 percent to C$36.06 as crude erased earlier losses to advance 1.3 percent in New York on signs of accelerating economic growth in Europe and unrest in the Middle East.

Penn West Petroleum, based in Calgary, rose 1.7 percent to C$12.12. The company has cut 550 jobs from the beginning of the year and expects to record an expense of about C$25 million in the third quarter related to the move.

US

By Nikolaj Gammeltoft and Alex Barinka

Aug. 23 (Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index posting its first two-day rally in three weeks, as investors watched Federal Reserve officials for signals on stimulus cuts after data showed home sales plunged.

Microsoft Inc. rallied 7.3 percent after Chief Executive Officer Steve Ballmer said he would retire within 12 months.

Nasdaq OMX Group Inc. added 1.2 percent after the shares slid the most in more than four months following a trading disruption yesterday. D.R. Horton Inc. sank 2.9 percent to pace declines in an index of homebuilder stocks. Pandora Media Inc. slumped 13 percent as its sales forecast missed estimates.

The S&P 500 climbed 0.4 percent to 1,663.47 at 4 p.m. in New York. The gauge added 1.3 percent in the past two sessions in the first back-to-back advance since Aug. 2. The Dow Jones Industrial Average rose 46.62 points, or 0.3 percent, to 15,010.36. About 4.9 billion shares changed hands on U.S. exchanges today, 21 percent below the three-month average.

“The macro picture is very important,” Jim Russell, the senior equity strategist for U.S. Bank Wealth Management, said in an interview from Cincinnati. His firm oversees $110 billion.

“Investors are trying to figure out how markets will respond to rising rates and what it will mean for the consumers and the business climate. This weekend’s meeting in Jackson Hole is a focus although we don’t expect big announcements.”

The S&P 500 gained 0.5 percent this week, snapping a run of two losing weeks, as investors weighed whether the economy is strong enough to prompt the Fed to curb its monthly bond purchases. Minutes from the central bank’s July meeting released Aug. 21 showed almost all policy makers agreed with plans to slow the pace if the economy continues to improve in line with forecasts.

Three Fed regional bank presidents, who spoke today from a monetary policy conference in Jackson Hole, Wyoming, differed over the timing for reducing the bond buying, with one backing a tapering next month if the economy remains strong and two others saying policy makers should take time to assess economic data.

“We can take our time” on slowing purchases, St. Louis Fed President James Bullard said. San Francisco’s John Williams told CNBC he wants to “taper our purchases later this year” if the economy doesn’t flag, while Atlanta’s Dennis Lockhart said he “would be supportive” of slowing purchases next month if the expansion holds up.

Data today from the Commerce Department showed purchases of new U.S. homes plunged in July by the most in more than three years and previous months were revised down, a sign that growth in the industry may be taking a pause as mortgage rates rise.

Yields on 10-year Treasury notes have risen toward a two-year high.

“Home sales are a big part of this recovery story in the U.S.,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, which oversees $180 billion, said in an interview. “The fact that there are rising interest rates looks like it may be starting to bite into new home sales. That’s probably going to cause the economy be a little softer in the second half.”

The monetary support helped push the S&P 500 up as much as 153 percent from its March 2009 low. Speculation about the stimulus has whipsawed stocks since May, when Chairman Ben S.

Bernanke, who is not at the conference, first indicated cuts could start this year.

The S&P 500 tumbled 5.8 percent from a record high on May 21 through June 24. It then rebounded as much as 8.7 percent to close at its latest record of 1,709.67 on Aug. 2. The index closed today 2.7 percent below the all-time high.

The Chicago Board Options Exchange Volatility Index, or VIX, dropped 5.3 percent to 13.98. The equity volatility gauge fell 2.7 percent in the past five days to halt two consecutive weeks of advances.

Nasdaq halted trading of its listed stocks for three hours yesterday because a computer problem left some investors without quotes and the company did not want to have “information asymmetry,” Chief Executive Officer Robert Greifeld said in interviews today.

Nasdaq shares rose 1.2 percent to $30.83 after retreating 3.4 percent yesterday. The exchange operator will probably not have to spend large sums on damages, Wells Fargo & Co. analysts led by Christopher Harris wrote in a note. Nasdaq suspended trading in the stocks, so investors probably didn’t lose money as a result of mismanaged orders.

Greifeld told CNBC that Nasdaq has “no liability” from the outage and said yesterday’s share decline was a buying opportunity.

Microsoft rallied 7.3 percent to $34.75 for the biggest gain in the Dow. Ballmer, who has struggled to adapt to an era of declining personal-computer sales, will retire after more than a decade leading the world’s largest software maker.

Autodesk Inc. jumped 7.7 percent, the most since October 2011, to $38.91. The software maker was upgraded to buy from neutral by B Riley & Co. after its sales and profit topped estimates in the second quarter.

The S&P Supercomposite Homebuilding Index sank 3.1 percent, with all 11 members declining. PulteGroup Inc. retreated 1.6 percent to $16.06 and D.R. Horton slid 2.9 percent to $18.73.

Pandora Media slumped 13 percent to $18.91, its steepest slide this year. The biggest online radio service forecast third-quarter profit that will miss analysts’ estimates as the company invests to expand its sales staff.

 

Have a wonderful weekend everyone.

 

Be magnificent!

 

I am imperfect and want to be perfect – this alone is the starting point of my nonviolence.

The imperfect will turn perfect when it ceases to be and what is not comes into being.

Acharya Mahaprajna, 1920-2010

As ever,

 

Carolann

 

A friend is one who knows you and loves you just the same.

–Elbert Hubbard, 1856-1915

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

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:

Info fact:

Productive people are early risers

-by Jenna Fisher

Ever wonder why productive people get up insanely early?  Paul DeJoe, writing in an op-ed for Fast Company, may have figured it out:  Morning is the one time in the day when there is no pressure and no expectations.  “The second you check email on LinkedIn, an internal clock of new items immediately starts in our minds – a vicious cycle.  Planning your day the night before allows you to feel on top of your day and even look forward to it.

Cooperation is essential to address 21-st century challenges: you can’t fire cruise missiles at the global financial crises. –Nicholas D.. Kristof, NY Times columnist, 10/23/2008.

Photos of the Day –August 22nd, 2013

A man looks at a giant inukshuk, or stone landmark, as the moon rises in Rankin Inlet, Nunavut, Canada. Chris Wattie/Reuters

Ducks cross a street in Ruesselsheim, Germany. Ralph Orlowski/Reuters

Market Closes for August 22^nd, 2013

Market  Index	Close	Change
Dow  Jones	14963.74	+66.19    +0.44%
S&P 500	1656.96	+14.16    +0.86%
NASDAQ	3638.707	+38.918    +1.08%
TSX	12674.35	+101.27
		+0.81%

International Markets

Market  Index	Close	Change
NIKKEI	13365.17	-59.16
		-0.44%
HANG  SENG	21895.40	+77.67
		+0.36%
SENSEX	18312.94	+407.03
		+2.27%
FTSE 100	6446.87	+56.03
		+0.88%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.743	2.754
CND.   30 Year Bond	3.208	3.216
U.S.   10 Year Bond	2.8844	2.8935
U.S.   30 Year Bond	3.8702	3.9197

Currencies

BOC Close	Today	Previous
Canadian $	0.95080	0.95382
US   $	1.05175	1.04841
Euro Rate  1 Euro=		Inverse
Canadian   $	1.40492	0.71178
US  $	1.33579	0.74862

Commodities

Gold	Close	Previous
London Gold   Fix	1376.00	1366.24
Oil	Close	Previous
WTI Crude Future	105.09	103.81
BRENT	109.359	109.359

Market Commentary:

Canada

By Eric Lam

Aug. 22 (Bloomberg) — Canadian stocks rose the most in two weeks, as metal producers advanced after a purchasing manager’s index in China showed manufacturing unexpectedly expanded this month.

Miners Teck Resources Ltd. and First Quantum Minerals Ltd. jumped at least 3.8 percent as copper rallied. Barrick Gold Corp. added 3.1 percent after agreeing to sell three of its mines in Australia for $300 million. Suncor Energy Inc. advanced 1.5 percent as crude climbed from a two-week low. WesternZagros Resources Ltd. plunged 27 percent after reporting disappointing results from a test well.

The Standard & Poor’s/TSX Composite Index rose 101.27 points, or 0.8 percent, to 12,674.35 at 4 p.m. in Toronto, the biggest gain since Aug. 8. The index has advanced 1.5 percent in August. Trading volume was 5.5 percent lower than the 30-day average at this time of the day.

The report from China “is indicative of a soft landing,” said Bob Decker, a fund manager with Aurion Capital Management in Toronto. The firm manages about C$6 billion ($5.7 billion).

“We still need more data from China. It’s too early to call the end of the slowdown just yet.”

A factory index released today showed Chinese manufacturing resumed expansion this month after shrinking the most in almost a year in July. Growth in the world’s second-biggest economy has been slowing in recent quarters.  China is Canada’s No. 2 trading partner and the largest consumer of metals and energy.

“This is good news for resource markets,” said David Rosenberg, chief economist and strategist with Gluskin Sheff & Associates Inc., in a note to clients today.

Raw-materials producers increased 2.3 percent, the most in the S&P/TSX as nine of 10 industries advanced.

Teck Resources, Canada’s largest diversified miner, jumped 3.8 percent to C$27.29 and First Quantum Minerals rallied 5 percent to C$18.58. Copper rallied 0.7 percent in New York, and nickel, tin and zinc prices advanced in London.

Barrick Gold, the world’s largest producer of the metal, rose 3.1 percent to C$20.57 after agreeing to the $300 million deal with Gold Fields Ltd. The move is part of Barrick’s plan to sell assets and cut costs to offset a drop in the price of gold, which plunged in April by the most in three decades.

Kinross Gold Corp. increased 3.1 percent to C$5.97 and Torex Gold Resources Inc. surged 6.3 percent to C$1.70 as the price of the metal for December delivery climbed for the second time in three days.

Suncor Energy added 1.5 percent to C$35.38 and BlackPearl Resources Inc. surged 8.5 percent to C$2.05. The S&P/TSX Energy Index advanced 0.5 percent as crude rebounded after falling yesterday to the lowest level since Aug. 8.

Bombardier Inc. gained 2.8 percent to C$4.70, snapping three days of losses. Canadian Pacific Railway Ltd. advanced 3.6 percent to C$128.33, for the largest increase in three months, as the S&P/TSX Industrials Index rallied 1.5 percent for the first increase in four days.

WesternZagros Resources plunged 27 percent to C$1.10, the most since May 2010. Tests of the Kurdamir-3 well in Iraq’s Kurdistan region resulted in non-commercial flow rates, WesternZagros said in a statement yesterday.

“There was disappointment over one of their major wells,” Aurion’s Decker said. “It’s a one-hit wonder: if this play works out the stock is a home run, but it’s a very high risk.”

US

By Alex Barinka and Nikolaj Gammeltoft

Aug. 22 (Bloomberg) — U.S. stocks rose on data showing improvement in global manufacturing and the American labor market amid a three-hour trading halt on the Nasdaq Stock Market after a computer error.

A gauge of homebuilders added 1.9 percent after a report showed house prices rose 7.7 percent in June from a year ago.

Yahoo Inc. rallied 3.1 percent as data showed it attracted more U.S. visitors than Google Inc. in July. Hewlett-Packard Co. slid 12 percent after the personal computer maker’s quarterly profit forecast missed some analysts’ estimates. Abercrombie & Fitch Co. plunged 18 percent as second-quarter earnings that fell short of forecasts.

The Standard & Poor’s 500 Index gained 0.9 percent to 1,656.96 at 4 p.m. in New York. The Dow Jones Industrial Average rose 66.19 points, or 0.4 percent, to 14,963.74. The measure snapped a six-day losing streak, its longest slump in 13 months.

The Nasdaq Composite Index rose 1.1 percent to 3,638.71 after trading resumed following a computer error.

“The employment numbers were encouraging and showed a continuation of slow growth in employment,” Paul Mangus, head of equity strategy and research for Wells Fargo Private Bank in Charlotte, North Carolina, said in a telephone interview. His firm manages $170 billion. “There are signs of stabilization in China and improvement in Europe, which could help U.S. multinationals in the long run.”

Computer breakdowns shook American equity trading again as malfunctioning software that feeds data between exchanges prompted Nasdaq to halt trading in stocks and options today starting around 12:20 p.m. in New York. Trading resumed about three hours later.

Buying and selling in many of the country’s most heavily traded shares from Apple Inc. to Intel Corp. and Facebook Inc. ground to a virtual standstill. The disruption comes just two days after options markets were roiled by mistaken trades sent by Goldman Sachs Group Inc.

“It’s a big deal for the Nasdaq, but it wasn’t as impactful on the market as you would expect,” Douglas Kass, the founder of Palm Beach, Florida-based Seabreeze Partners Management Inc., said in a phone interview. “There’ll be some residual loss of confidence on the part of retail investors but beyond that I don’t think it’ll have impact.”

Nasdaq faced criticism last year when it mishandled the public debut of Facebook, causing hundreds of millions of dollars in losses for its member firms. The company’s shares fell 3.4 percent to $30.46 today, after earlier rising as much as 1.1 percent.

The halt resulted in the second fewest number of shares changing hands on U.S. exchanges in at least five years during a full-day session, excluding holiday trading. About 4.4 billion shares traded today, 30 percent below the three-month average.

Volume was lower only on Oct. 8, 2012, according to data Bloomberg began compiling in 2008.

About 740 million exchange-listed shares changed hands during the three hours through 3:20 p.m. in New York following the suspension, or a third of the total transactions over the first three hours of today’s trading, the data show.

The S&P 500 fell 0.6 percent yesterday to the lowest level since July 8 as minutes from the Federal Reserve’s July meeting showed officials support stimulus cuts this year if the economy improves.

Fed stimulus helped push the S&P 500 up as much as 153 percent from its March 2009 low, as better-than-estimated corporate earnings also fueled equity gains. Of the 483 companies in the S&P 500 that have reported quarterly earnings this period, 71 percent surpassed profit estimates, Bloomberg data show.

The fewest workers in more than five years applied for U.S. unemployment benefits over the past month, indicating the labor market continues to improve.

The number of claims in the month ended Aug. 17 declined to 330,500 a week on average, the least since November 2007, a Labor Department report showed today in Washington. Compared with a week earlier, claims rose by 13,000 to 336,000, in line with the median forecast of 48 economists surveyed by Bloomberg.

The Fed has said it plans to keep benchmark interest rates near zero at least as long as the unemployment rate is above 6.5 percent and inflation is no more than 2.5 percent.

Speculation about the stimulus has whipsawed stocks since May, when the Fed first indicated cuts could start this year.

The S&P 500 tumbled 5.8 percent from a record high on May 21 through June 24. It then rebounded as much as 8.7 percent to close at its latest record of 1,709.67 on Aug. 2. The index finished yesterday 3.9 percent below the all-time high.

The Chicago Board Options Exchange Volatility Index, or VIX, dropped 7.4 percent to 14.76 today, after jumping yesterday to the highest since July 3. The equity volatility gauge has retreated 18 percent this year as the S&P 500 has rallied 16 percent on growing signs economic growth is improving.

Data today showed the Conference Board’s index of leading economic indicators increased 0.6 percent in July. The median forecast in a Bloomberg survey of economists called for a 0.5 percent advance.

Overseas reports showed Germany led growth in manufacturing and services in the euro area, while a gauge for China’s factory output unexpectedly showed expansion.

Energy stocks rallied 1.4 percent and materials producers jumped 1.2 percent as all 10 main industries in the S&P 500 advanced today.

Cliffs Natural Resources Inc. surged 5.8 percent to $22.44, snapping a string of five straight losses. Freeport-McMoRan Copper & Gold Inc. added 3.3 percent to $31.35 to pace gains among miners. Industrial metals rallied on the data from China, the world’s biggest consumer of commodities.

A factory index released by HSBC Holdings Plc and Markit Economics showed a preliminary reading of 50.1, exceeding the 48.2 median estimate of economists in a Bloomberg survey.

Readings above 50 signal growth.

Barrick Gold Corp., the world’s biggest producer of the precious metal, gained 2.6 percent to $19.56. Gold Fields Ltd. said it will pay $300 million for Barrick’s Granny Smith, Lawlers and Darlot gold mines in Western Australia.

The S&P Supercomposite Homebuilding Index rose 1.9 percent.

All 11 members advanced after the Federal Housing Finance Agency report showed home prices extending a recovery. Prices climbed 0.7 percent in the month on a seasonally adjusted basis from May.

Toll Brothers Inc. gained 2.6 percent to $32.47 and PulteGroup Inc. climbed 1.4 percent to $16.32.

Yahoo, the biggest U.S. Web portal, added 3.1 percent to $27.90. More than 196 million users spent time on Yahoo’s websites in July, ComScore Inc. said. That’s 4.3 million more than Google Inc. and the first time Yahoo’s Web traffic surpassed that of the world’s most popular search engine since May 2011.

GameStop Corp. jumped 9 percent to $51.91 for the biggest gain in the S&P 500. The largest specialty retailer of video games gained the most in a year after raising its full-year profit forecast ahead of the release of new consoles from Sony Corp. and Microsoft Corp.

Hewlett-Packard tumbled 12 percent to $22.22, the steepest slide in the Dow. The computer maker issued a forecast for fiscal fourth-quarter profit that missed some analysts’ estimates, and Chief Executive Officer Meg Whitman rescinded a projection for growth in fiscal 2014 as ebbing demand for personal computers and lower business spending hamper her turnaround efforts.

Abercrombie & Fitch plunged 18 percent to $38.53, the biggest drop since November 2011. The retailer reported second- quarter earnings of 16 cents a share, compared with the average analyst estimate of 29 cents and its own forecast of at least 28 cents.

Sears Holding Corp. slumped 8.2 percent to $39.72, the lowest close this year. The retailer controlled by Edward Lampert said its second-quarter loss widened to $194 million as its loyalty program members used more discounts. Members of the company’s Shop Your Way program accounted for more than 65 percent of sales at Sears operations and Kmart in the quarter.

Sales fell 6.3 percent to $8.87 billion.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

The whole universe is bound by the law of causation.

There cannot be anything, any fact – either in the internal or in the external world –

that does not have a cause; and every cause must produce an effect.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

Do not take life seriously.  You will never

get out of it alive.

-Elbert Hubbard, 1856-1915

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

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:

As Carolann is out of the office this afternoon, I will be sending the newsletter on her behalf.

Are you a creative person who loves to write? If so, Times Colonist has their 4^th Annual “So you think you can write” contest taking place.  Contestants must submit a 250 word story, poem or essay that includes the words arm, feature, harbour, press, tide and type.  Contestants have until September 12^th to submit their writing for a chance to win many great prizes! Good luck to all the writers out there!

“There are no mistakes. The events we bring upon ourselves, no matter how unpleasant, are necessary in order to learn what we need to learn; whatever steps we take, they’re necessary to reach the places we’ve chosen to go.” – Richard Bach

Photos of the Day –August 21^st, 2013

People ride all-terrain vehicles on the tundra as the sun sets near the Arctic community of Gjoa Haven, Nunavut. Chris Wattie/Reuters

Massive waves from approaching Tropical Storm Trami slam into breakwaters near Toucheng, north eastern Taiwan. Severe Tropical Storm Trami is bearing down on heavily populated northern Taiwan, prompting schools and offices to close. Up to 2 feet of rain is expected in some areas, and landslides could occur across the island. Wally Santana/AP

Market Closes for August 21^st, 2013

Market  Index	Close	Change
Dow  Jones	14897.55	-105.44    -0.70%
S&P 500	1642.80	-9.55    -0.58%
NASDAQ	3599.790	-13.801    -0.38%
TSX	12573.08	-97.03
		-0.77%

International Markets

Market  Index	Close	Change
NIKKEI	13424.33	+27.95
		+0.21%
HANG  SENG	21817.73	-152.56
		-0.69%
SENSEX	17905.91	-340.13
		-1.86%
FTSE 100	6390.84	-62.62
		-0.97%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.754	2.681
CND.   30 Year Bond	3.216	3.161
U.S.   10 Year Bond	2.8935	2.8142
U.S.   30 Year Bond	3.9197	3.8529

Currencies

BOC Close	Today	Previous
Canadian $	0.95382	0.96202
US   $	1.04841	1.03948
Euro Rate  1 Euro=		Inverse
Canadian   $	1.39956	0.71451
US  $	1.33495	0.74909

Commodities

Gold	Close	Previous
London Gold   Fix	1366.24	1369.38
Oil	Close	Previous
WTI Crude Future	103.81	104.96
BRENT	109.359	109.359

Market Commentary:

Canada

By Eric Lam

Aug. 21 (Bloomberg) — Canadian stocks fell for the second time in three days as gold producers slumped the most in two weeks after minutes from the U.S. Federal Reserve’s July meeting showed policy makers support plans to slow stimulus.

Kinross Gold Corp. and Semafo Inc. sank at least 5.7 percent as the price of gold retreated. Niko Resources Ltd. Fell 8 percent after an analyst lowered his rating for the company due to concerns about its finances. Canadian Natural Resources Ltd. retreated 0.9 percent as crude declined to a two-week low.

Teck Resources Ltd. declined for a fourth day as the price of copper tumbled.

The Standard & Poor’s/TSX Composite Index fell 97.03 points, or 0.8 percent, to 12,573.08 at 4 p.m. in Toronto. The index has gained 1.1 percent this year. Trading volume was 2.5 percent lower than the 30-day average.

“Most investors had come to the conclusion tapering was happening one way or another, and this is just another confirmation,” Anish Chopra, a fund manager with TD Asset Management Inc., said from Toronto. His firm manages C$216 billion ($207 billion). “There’s still questions about the timeline, and the amount. Some investors may still have thought there was some division. That’s not a question anymore.”

Officials with the Federal Open Market Committee were “comfortable” with Chairman Ben S. Bernanke’s plan to start reducing bond buying later this year if the economy improves, with a few saying tapering might be needed soon, minutes from their July meeting show.

Policy makers will also gather in Jackson Hole, Wyoming, this week to discuss monetary policy. About 65 percent of economists surveyed by Bloomberg News predict policy makers will taper stimulus in September.

“Our base-case assumption remains that the tapering will begin in October — with September still a possibility,” said Mark Chandler, head of Canadian fixed income strategy with RBC Capital Markets in Toronto, in a report this morning before the minutes were released.

Raw-materials producers slumped 3 percent as a group, the most since Aug. 6, declining the most in the S&P/TSX as all 10 industries retreated.

Semafo sank 7.2 percent to C$2.31 and Kinross Gold fell 5.7 percent to C$5.79 as gold for December delivery slipped 0.1 percent to settle at $1,370.80 an ounce. Gold has tumbled 19 percent this year. The S&P/TSX Gold Index lost 3.6 percent, the most since Aug. 6, after rallying to a four-month high yesterday.

Teck Resources, Canada’s largest diversified miner, fell 4.6 percent to C$26.28 for a fourth day of declines, the longest such streak since June. The stock has lost 9.6 percent since Aug. 15.

Copper prices slid 0.9 percent. A Chinese factory gauge due tomorrow from HSBC Holdings Plc and Markit Economics will show manufacturing continued to contract in August, economists surveyed by Bloomberg said.

Niko Resources slipped 8 percent to C$5.73 for a four-month low. Darren Engels, analyst with FirstEnergy Capital Corp. in Calgary, lowered his rating for the stock to market perform, the equivalent of hold, and dropped his price target to C$8.50 from C$14.

“There is far too much uncertainty regarding the company’s finances,” Engels said in a note to clients today.

Canadian Natural Resources retreated 0.9 percent to C$30.68 as crude declined 1.2 percent in New York. The U.S. Energy Information Administration said stockpiles fell by 1.43 million barrels last week. Analysts had forecast a decline of 1.5 million barrels.

BlackBerry Ltd. sank 2.5 percent to C$10.73 after Canada’s Industry Minister James Moore said the company must revive itself without help from the government.

“It’s for them to engage the market and provide devices and services, platforms, content that the market will receive well,” Moore said.

The Waterloo, Ontario-based smartphone maker announced it was forming a special committee to consider a possible sale on Aug. 12.

US

By Lu Wang and Alex Barinka

Aug. 21 (Bloomberg) — U.S. stocks fell, giving the Dow Jones Industrial Average its longest slump in 13 months, as minutes of the Federal Reserve’s July meeting showed officials support stimulus cuts this year if the economy improves.

Staples Inc. plunged 15 percent after declines in its retail and international business sparked in a reduction in its earnings forecast. Target Corp. slid 3.6 percent as profit fell 13 percent amid consumers’ caution in the face of higher taxes and unsteady employment. Lowe’s Cos. jumped 3.9 percent after the second-largest U.S. home-improvement retailer raised its full-year projection amid a housing recovery.

The Standard & Poor’s 500 Index lost 0.6 percent to 1,642.80 at 4 p.m. in New York, the lowest since July 8. The Dow dropped 105.44 points, or 0.7 percent, to 14,897.55. The measure retreated for a sixth day, the longest losing streak since July 2012. About 5.6 billion shares changed hands on U.S. exchanges today, 11 percent below the three-month average.

“The Fed minutes continue to show this clear uncertainty as to when the monetary tightening will begin,” Erik Davidson, deputy chief investment officer for Wells Fargo Private Bank in San Francisco, said in a phone interview. His firm oversees $170 billion. “It will be a seminal moment when they move from the easing they’ve been in for years toward some incremental tightening steps. The minutes are quite clear in the sense that the Fed doesn’t know that we are there yet where the process can begin.”

The S&P 500 fluctuated after the Fed released its minutes at 2 p.m. in Washington, with the gauge at one point erasing losses of as much as 0.8 percent. Growing concern that the Fed would reduce stimulus this year contributed to the index’s 3.4 percent drop from a record close on Aug. 2 through yesterday.

Fed monetary support helped propel the benchmark gauge up more than 150 percent from its bear-market low in 2009.

The Federal Open Market Committee’s minutes from the July 30-31 gathering released today showed officials were “broadly comfortable” with Chairman Ben S. Bernanke’s plan to start reducing bond buying later this year, with a few saying tapering might be needed soon. FOMC participants continued to expect economic growth to pick up in the second half of 2013 and “strengthen further.”

After the July meeting, policy makers affirmed a pledge to continue stimulus until seeing signs “the outlook for the labor market has improved substantially.” July hiring data, released after the meeting, showed the smallest jobs gain in four months and the lowest jobless rate in more than four years.

Data tomorrow is expected to show that initial jobless claims rose last week, according to estimates compiled by Bloomberg. A report today indicated that sales of previously owned U.S. homes climbed more than forecast in July to the fastest pace since November 2009 as more buyers entered the market.

Speculation about the stimulus has whipsawed stocks since May, when Bernanke first indicated cuts could start this year.

The benchmark index tumbled 5.8 percent from a record high on May 21 through June 24. It then rebounded as much as 8.7 percent to the latest closing record of 1,709.67.

“Everybody is edgy right now,” Mark Lehmann, president of JMP Securities LLC in San Francisco, said in a phone interview.

“People are not convinced about what to do, so you’re susceptible” to big intraday market swings like today, he said.

The Chicago Board Options Exchange Volatility Index, or VIX, jumped 6.9 percent to 15.94 today, the highest since July 3. The equity volatility gauge erased an earlier gain of 11 percent, falling as much as 1.6 percent before reversing.

Investors have also been keeping an eye on corporate earnings, which have helped the S&P 500 rally 16 percent this year through yesterday. Of the 474 companies in the S&P 500 that have reported results this period, 72 percent have posted profit that surpassed estimates, data compiled by Bloomberg show.

All 10 S&P 500 main industries fell today. Utility and phone stocks dropped the most, sliding 1.2 percent, as yields on 10-year Treasury notes traded near the highest level in two years, cutting demand for dividends.

Utility companies offer a dividend yield of 4.1 percent, ranking the highest among 10 industries after telephone stocks.

The two groups slumped more than 7.6 percent in the past three months, the most in the index.

Staples tumbled 15 percent, the most in more than two years, to $14.27. The world’s largest office-supplies chain, which suffers from waning consumer demand for products such as ink and toner and computer accessories, cut its outlook after second-quarter results were weaker than it expected.

Target dropped 3.6 percent to $65.50, the lowest since March 1. The second-largest U.S. discount retailer joins Wal- Mart Stores Inc. and Macy’s Inc. in reporting results that showed the bumpy economy and increased Social Security taxes are making consumers reluctant to spend beyond necessities.

PetSmart Inc. dropped 5.3 percent to $71. The pet-store chain forecast earnings of 83 cents to 87 cents a share in the third quarter. Analysts, on average, estimated 87 cents, according to a Bloomberg survey.

American Eagle Outfitters Inc. plunged 9.9 percent to $14.76. The clothing retailer’s second-quarter sales fell short of analyst estimates.

Goldman Sachs Group Inc. fell 1.5 percent to $157.11. A programming error caused the firm to send unintentional stock options orders in the first minutes of trading, pushing prices on dozens of contracts to a dollar each, according to a person briefed on the matter yesterday and data compiled by Bloomberg.

Any losses for Goldman Sachs, the fifth-largest U.S. bank by assets, won’t be known until exchanges determine which contracts should be canceled, said the person, who requested anonymity because the information is private.

Lowe’s rose 4.3 percent to $45.97. The second-largest U.S. home-improvement retailer posted second-quarter profit that topped analysts’ estimates and raised its forecast for the year as the housing recovery fuels spending on remodeling.

Garmin Ltd. climbed 5.6 percent to $40.59 for the biggest gain in the S&P 500. The largest maker of navigation devices was boosted to neutral from sell at Goldman Sachs.

Incyte Corp. surged 35 percent to $36.45, the highest since November 2000. The drugmaker said a Phase 2 study indicated its Jakafi inhibitor showed a benefit for treating patients with pancreatic cancer.

 

Have  a wonderful evening everyone.

 

Be magnificent!

 

“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.”
Confucius

As ever,

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

 

Dear Friends,

Tangents:

On this day, August 20^th, 1882, Russian composer Tchaikovsky’s 1812 Overture debuted; he wrote it to commemorate Russia’s defense of Moscow against Napoleon.

The best way to keep one’s word is not to give it. -Napoleon Bonaparte, 1769-1821.

And I must be off to finish an assignment due  tomorrow for an estate planning course I am enrolled in.

Photos of the Day –August 20^th, 2013

Mayflies are pictured above a river at dusk in Heihe, Heilongjiang province, August 19, 2013. The nuptial flight of mayflies takes place in evening time during spring and summer every year, as the insect mates and reproduces. China Daily/Reuters

Lightning forks over downtown San Francisco on Monday, Aug. 19, 2013. Noah Berger/AP

Market Closes for August 20^th, 2013

Market  Index	Close	Change
Dow  Jones	15002.99	-7.75    -0.05%
S&P 500	1652.35	+6.29    +0.38%
NASDAQ	3613.590	+24.504    +0.68%
TSX	12670.11	+82.09
		+0.65%

International Markets

Market  Index	Close	Change
NIKKEI	13396.38	-361.75
		-2.63%
HANG  SENG	21970.29	-493.41
		-2.20%
SENSEX	18246.04	-61.48
		-0.34%
FTSE 100	6453.46	-12.27
		-0.19%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.681	2.745
CND.   30 Year Bond	3.161	3.209
U.S.   10 Year Bond	2.8142	2.8804
U.S.   30 Year Bond	3.8529	3.8995

Currencies

BOC Close	Today	Previous
Canadian $	0.96202	0.96672
US   $	1.03948	1.03443
Euro Rate  1 Euro=		Inverse
Canadian   $	1.39500	0.71685
US  $	1.34206	0.74512

Commodities

Gold	Close	Previous
London Gold   Fix	1369.38	1365.83
Oil	Close	Previous
WTI Crude Future	104.96	107.10
BRENT	109.359	109.359

Market Commentary:

Canada

By Eric Lam

Aug. 20 (Bloomberg) — Canadian stocks rose, following the biggest drop since June yesterday, as gold producers advanced to a four-month high to overshadow data showing a decline in the nation’s wholesale sales.

Semafo Inc. soared 13 percent to pace gains among gold producers. Kinross Gold Corp. and B2Gold Corp. rose at least 3.9 percent. Silver Wheaton Corp. climbed 3.2 percent as silver trimmed earlier losses. Bombardier Inc. fell 1.5 percent, dropping for a second day. Paladin Energy Ltd. slumped 5.1 percent after analysts lowered their ratings for the stock.

The Standard & Poor’s/TSX Composite Index rose 82.09 points, or 0.7 percent, to 12,670.11 at 4 p.m. in Toronto. The index has gained 1.9 percent this year. Trading volume was 5.1 percent lower than the 30-day average.

“The gold sector is stronger and energy names are mixed, although crude at $105 a barrel isn’t what I’d call disastrous either,” said John O’Connell, chief executive officer with Davis Rea Ltd. in Toronto. The firm manages about C$600 million ($577 million). “You’re seeing some flow back into gold because it’s one of those areas that has been beaten up a lot.”

Gold gained for the fourth time in five sessions, rising 0.5 percent to $1,372.60 an ounce in New York. Gold stocks in Canada have slumped 28 percent this year as the price of the metal heads for the worst annual drop since 1997.

Semafo jumped 13 percent to C$2.49, the most since May 2012, Kinross Gold rallied 3.9 percent to C$6.14 and B2Gold jumped 6.1 percent to C$3.13 as 23 of 24 members of the S&P/TSX Gold Index increased. The index climbed 3.5 percent to the highest close since April 11.

Silver Wheaton advanced 3.2 percent to C$28.36 and Silvercorp Metals Inc. rose 4 percent to C$3.90 as the price of silver fell 0.4 percent after paring earlier losses of as much as 3.9 percent.

Canadian wholesale sales fell in June from a record the previous month with declines in every major category, adding to signs of a mid-year slowdown in the world’s 11th largest economy.

“Growth is forecast to recover over the second half of the year in tandem with a stronger outlook for the United States,” said David Tulk, Chief Canada macro strategist with TD Securities Inc. in Toronto, in a note after the report.

“Allowing net exports to take over the mantle of growth will take some of the pressure off of the fatigued domestic economy and provide comfort to the Bank of Canada that, even if sluggish by historical standards, the recovery remains on track.”

The Canadian economy is forecast to slow to 1.6 percent in the second quarter from 2.5 percent in the first before accelerating to 2.1 percent growth in each of the next two quarters, according to economists’ estimates.

Royal Bank of Canada, the nation’s largest lender, added 1 percent to C$64.67, for the highest close in three weeks. The S&P/TSX Financials Index climbed 0.7 percent.

Bombardier, based in Montreal, lost 1.5 percent to C$4.72.

The stock has lost 3.3 percent in the past two days, after National Bank analyst Cameron Doerksen said in a note yesterday the company’s CSeries jet may have its entry into service delayed to early 2015 from September 2014. The CSeries jet has yet to take its maiden flight.

Paladin Energy, which explores for uranium in Australia and Southern Africa, sank 5.1 percent to 56 Canadian cents, a record low according to data compiled by Bloomberg, after Matthew Keane, analyst with Argonaut Securities Pty Ltd. and Glyn Lawcock, analyst with UBS AG, both lowered their ratings for the stock to hold.

US

By Alex Barinka and Nikolaj Gammeltoft

Aug. 20 (Bloomberg) — Most U.S. stocks rose, with the Standard & Poor’s 500 snapping a four-day losing streak, as retailers’ results surpassed estimates and investors awaited signals on stimulus measures from the Federal Reserve.

Best Buy Co. rallied 13 percent after posting quarterly sales that exceeded projections. TJX Cos. added 6.9 percent as profit beat forecasts. Urban Outfitters Inc. jumped 8.2 percent as Wedbush Securities Inc. raised its rating on the stock.

Zillow Inc. dropped 4.8 percent after the operator of the largest U.S. real-estate website announced a share sale.

The S&P 500 rose 0.4 percent to 1,652.35 at 4 p.m. in New York. The Dow Jones Industrial Average fell 7.75 points, or less than 0.1 percent, to 15,002.99, erasing earlier gains of as much as 0.4 percent. Almost 5.3 billion shares changed hands on U.S. exchanges today, 16 percent below the three-month average, as more than three stocks rose for each that fell.

“We had some pretty good retail earnings, it just shows the consumer is not dead and that things are moving in the right direction,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said in a phone interview. His firm manages about $1.7 billion. “Everyone is still focused on Fed tapering. We remain cautiously bullish with pretty full exposure to stocks.”

The S&P 500 lost 2.9 percent in the previous four sessions, dropping each day for the longest losing streak this year, as speculation mounted that the Fed will start to taper its quantitative-easing program. The Dow extended its longest losing streak since December to five days.

The central bank will publish the minutes from the Federal Open Market Committee’s July 30-31 meeting tomorrow. Investors will scrutinize the discussions for anything that may indicate when the Fed will reduce the pace of its monthly asset purchases. Officials meet in Jackson Hole, Wyoming this week to discuss monetary policy.

They will start to scale back bond buying next month, according to 65 percent of economists surveyed by Bloomberg from Aug. 9-13. The median estimate suggested the first move will be to reduce purchases to $75 billion a month.

The Fed has said it will weigh economic data to decide the timing and pace of any reduction. A report tomorrow will show sales of existing homes rose in July and data Aug. 22 will indicate initial jobless claims increased last week, according to estimates compiled by Bloomberg.

Data today showed U.S. same-store sales rose 0.2 percent month over month in the Aug. 17 week. Sales at stores open at least a year rose 3.4 percent compared to a year earlier, according to the latest data released by Johnson Redbook Research.

The Fed stimulus has helped propel the S&P 500 up more than 150 percent from its bear-market low in 2009. The gauge closed at a record on Aug. 2, and dropped 3.7 percent through yesterday.

“It’s just been a pretty down couple of weeks,” Craig Goryl, a portfolio manager at Cabot Money Management Inc., which oversees $500 million in Salem, Massachusetts, said by telephone. “Sentiment just went a little bit too far in one direction, and this tends to happen that we have a bounce back.”

Investors have also been watching corporate earnings for signs of strength in the economy. Of the 467 companies in the S&P 500 that have reported results this period, 72 percent have posted earnings that surpassed estimates.

The Chicago Board Options Exchange Volatility Index, or VIX, fell 1.3 percent to 14.91. While the gauge has advanced 22 percent since a low on Aug. 5, it remains 20 percent lower for the year.

Eight of 10 main industries in the S&P 500 advanced.

Utility stocks jumped 0.8 percent, snapping a seven-day losing streak that erased 5.8 percent from the S&P 500 Utilities Sector Index. Sempra Energy rallied 1.4 percent.

Shares in producers of consumer discretionary items jumped 0.9 percent as a group, with retailers pacing the gains.

Best Buy surged 13 percent to $34.80, the highest level in six months. The world’s largest consumer-electronics retailer posted its biggest quarterly profit since the period ended February 2011 after the company $65 million in annual costs.

Best Buy also expanded store space for Samsung Electronics Co.’s gadgets and devices running Microsoft Corp.’s Windows 8 operating system.

TJX jumped 6.9 percent to $54.24. The retailer raised its full-year profit forecast after reporting second-quarter earnings and sales that surpassed analysts’ estimates.

Urban Outfitters rallied 8.2 percent to $43.19. The retailer posted second-quarter earnings of 51 cents a share, beating the average analyst estimate by 3 cents. The Philadelphia-based company also said comparable sales during the period rose 9 percent, more than the 8.1 percent increase projected by analysts.

J.C. Penney added 6 percent to $14.01. The department-store chain posted second-quarter sales that fell more slowly than a year earlier, showing Chief Executive Officer Mike Ullman is making progress in arresting the department-store chain’s slide.

Hedge-fund manager J. Kyle Bass, the founder of Hayman Capital Management LP in Dallas, is betting on a J.C. Penney comeback, accumulating a long position in the stock over the past two weeks, according to a person, who asked not to be named because the information is private. J.C. Penney had slumped 33 percent this year through yesterday as an overhaul failed to attract new shoppers, while alienating existing customers.

Bob Evans Farms Inc. rose 10 percent to a record $52.48.

The maker of pork sausages reported first-quarter earnings that beat analysts’ estimates and boosted its dividend.

Dick’s Sporting Goods Inc. slid 7.8 percent to $46.64. The retailer posted second-quarter earnings and sales that missed analysts’ estimates as the company said it faced a “sluggish consumer environment” and cut its profit forecast for the year.

Zillow retreated 4.8 percent to $80.71. The Seattle-based company said it will sell $411.9 million in stock, with Zillow and some holders offering 5.02 million shares at $82 each. The company agreed yesterday to buy StreetEasy, a residential real- estate site with about 1.2 million monthly unique users, for $50 million in cash.

Barnes & Noble Inc. plunged 12 percent to $14.61, the lowest since Feb. 22. Founder Leonard Riggio suspended his efforts to bid for the company’s retail business, the company said in a filing today.

Riggio, who’s also the company’s chairman and largest shareholder, said in February that he planned to make an offer to buy the company’s retail assets, which include its 680 stores and website.

Medtronic Inc. fell 2.4 percent to $52.83. The world’s biggest maker of heart-rhythm devices posted fiscal first- quarter sales that missed analysts’ estimates on weaker-than- expected demand for defibrillators and the InFuse bone-growth product.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Knowledge relieves all suffering.  Knowledge liberates.

Which knowledge?  Chemistry?  Physics?  Astronomy?  Geology?

They help a little, but only a little.  The true knowledge is the knowledge of our own nature.

Know yourself.  You must know who you are, understand your inner nature.

You must become conscious of this infinite nature in yourself.  Then you will break free of your shackles.

-Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

In three words I can sum up everything I’ve learned about life:  It Goes On.

–Robert Frost, 1874-1963

 

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

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:

Seattle Opera did not disappoint with its latest Ring Cycle, beginning with Das Rheingold last Monday night, followed by Die Walküre, Siegfried and the final opera we attended on Saturday evening, Götterdämmerung.  The first Ring cycle was performed in Seattle in 1975 and has been performed every four years since.  Der Ring des Nibelungen was first performed as a cycle in August 1876 at the Festspielhaus in Bayreuth, Germany.  It’s a lot of opera for a week, but it is amazing theatre.  Conductor Asher Fisch is a true genius.  He stated in his “Welcome” to the audience in the program, “It is my goal to give you an incredible sonic experience to illuminate each dramatic moment of these operas with music full of meaning and beauty.  I want you to have an experience you can’t possibly get in any digital form.  And if you are new to Wagner, it is my wish that you experience something akin to what I did 20 years ago when I first discovered Wagner.  Growing up as I did in Israel, I hadn’t heard much Wagner until I moved to Berlin to work for Daniel Barenboim at the Staatsoper.  At that point, Wagner swept me away like a tidal wave…”   Well, Asher Fisch, you swept us away like a tidal wave.

Anniversary:  On August 19^th, 2004, Sergey Brin and Larry Page, took their search engine company, Google, public.  The shares closed that day at $100.34 that day.  They closed at $865.65 today.

Photos of the Day –August 19^th, 2013

Enzo the dog rests after Steven Tillack and Karen Sundstrom won their division with a 1960 Alfa Romeo Superflow IV Pinin Farina Coupe during the Concours d’Elegance on the 18th fairway of the Pebble Beach Golf Links in Pebble Beach, California. The Concours tops a week-long celebration of automobiles and car culture on the Monterey Peninsula. Michael Fiala/Reuters

Members of an international religious movement called the White Brotherhood perform a ritual dance near Babreka lake, in Rila Mountain, 62 miles south of Sofia, as part of celebration of their New Year. The teaching of the movement, whose founder is Bulgarian Peter Danov, is a synthesis of Christianity and Hinduism with a heavy emphasis on brotherly love, a healthy diet and living in harmony with nature. Stoyan Nenov/Reuters

Market Closes for August 19^th, 2013

Market  Index	Close	Change
Dow  Jones	15010.74	-70.73    -0.47%
S&P 500	1646.06	-9.77    -0.59%
NASDAQ	3589.086	-13.692    -0.38%
TSX	12588.02	-148.90
		-1.17%

International Markets

Market  Index	Close	Change
NIKKEI	13758.13	+108.02
		+0.79%
HANG  SENG	22463.70	-54.11
		-0.24%
SENSEX	18307.52	-290.66
		-1.56%
FTSE 100	6465.73	-34.26
		-0.53%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.745	2.706
CND.   30 Year Bond	3.209	3.175
U.S.   10 Year Bond	2.8804	2.8251
U.S.   30 Year Bond	3.8995	3.8483

Currencies

BOC Close	Today	Previous
Canadian $	0.96672	0.96735
US   $	1.03443	1.03375
Euro Rate  1 Euro=		Inverse
Canadian   $	1.37958	0.72486
US  $	1.33366	0.74981

Commodities

Gold	Close	Previous
London Gold   Fix	1365.83	1376.87
Oil	Close	Previous
WTI Crude Future	107.10	107.46
BRENT	109.359	109.359

Market Commentary:

Canada

By Eric Lam

Aug. 19 (Bloomberg) — Canadian stocks fell, for the biggest drop since June, as a decline in gold and silver spurred losses in metal producers and energy companies slumped the most in eight weeks.

B2Gold Corp. plunged 13 percent to pace declines among gold mining companies after announcing a $225 million note offering.

Endeavour Silver Corp. and Silvercorp Metals Inc. slipped at least 2.9 percent as the price of the metal snapped the longest winning streak since January. Penn West Petroleum Ltd. and Bonterra Energy Corp. retreated more than 1.2 percent as crude fell.

The Standard & Poor’s/TSX Composite Index fell 148.90 points, or 1.2 percent, to 12,588.02 at 4 p.m. in Toronto. The index has gained 1.2 percent this year, the third-worst performance among developed markets ahead of Singapore and Hong Kong.

“Nothing goes up forever, the gold commodity had a good run as well as the stocks last week and they’re taking a bit of a pause today,” said John Kinsey, a fund manager with Caldwell Securities Ltd. in Toronto. The firm manages about $1 billion.

“The financials are down today, with the usual headwinds of mortgages and housing still present. It’s been a case of going up one day and then back down the next, and that’s going to continue to the end of the month when the banks report earnings.”

Financial stocks declined 0.9 percent as all 10 industries in the S&P/TSX retreated. Trading volume was 17 percent lower than the 30-day average at this time of the day.

Bank of Montreal lost 0.7 percent to C$63.96 and Bank of Nova Scotia slipped 0.2 percent to C$58.12. The two banks will report their third-quarter earnings on Aug. 27, the first of Canada’s major banks to do so for this period.

BMO is expected to report adjusted earnings of C$1.53 a share and Scotiabank C$1.31 a share, according to analysts surveyed by Bloomberg.

Penn West Petroleum sank 4.5 percent to C$11.78 and Canadian Natural Resources Ltd. fell 2.6 percent to C$30.67 as 55 of 58 members of the S&P/TSX Energy Index fell. The energy index lost 1.7 percent, the biggest decline since June 20.

Crude fell for the first time in seven days as the threat of a storm in the Gulf of Mexico dissipated, removing a risk to oil and gas production. Crude for September delivery fell 0.3 percent to $107.10 a barrel in New York.

B2Gold sank 13 percent to C$2.95, the biggest loss in almost five years. The gold producer, with mines in Nicaragua, Colombia and Uruguay, said it was raising the debt for “general corporate purposes.”

Silvercorp Metals lost 5.1 percent to C$3.75 and Endeavour Silver fell 2.9 percent to C$5.28 as silver for December delivery retreated 0.7 percent to $23.22. The price of silver advanced for seven straight days before today.

Bombardier Inc. dropped 1.8 percent to C$4.79. Cameron Doerksen, analyst with National Bank Financial, said in a note to clients that the entry into service of the company’s CSeries jet may be pushed into early 2015.

Utilities stocks plunged 2.8 percent for a three-year low, as 10 of 11 companies in the group declined amid a rise in bond yields. Algonquin Power & Utilities Corp. fell 4.3 percent to C$6.64 and TransAlta Corp. retreated 2.1 percent to C$13.84.

The S&P/TSX Utilities Index yielded 5 percent in dividends in the second quarter, compared with 3.2 percent for the S&P/TSX, data compiled by Bloomberg show.

U.S. Treasury yields jumped to the highest level since 2011 today amid speculation the Federal Reserve will trim its bond purchasing program next month.

US

By Alex Barinka and Nikolaj Gammeltoft

Aug. 19 (Bloomberg) — U.S. stocks fell, giving the Standard & Poor’s 500 Index its first four-day decline of the year, after energy shares dropped and Treasury yields jumped to a two-year high as investors awaited signals this week on the Federal Reserve’s stimulus plans.

Apache Corp. tumbled 4.6 percent, leading energy stocks to the biggest decline among 10 groups in the S&P 500 as crude prices fell. Exxon Mobil Corp. dropped for the 18th time in 19 days. Intel Corp. gained 1.7 percent after Piper Jaffray Cos. raised its rating on the shares. Edwards Group Ltd. surged 18 percent after Atlas Copco AB agreed to buy the company for $1.2 billion.

The S&P 500 dropped 0.6 percent to 1,646.06 at 4 p.m. in New York, the lowest level since July 8. The Dow Jones Industrial Average slipped 70.73 points, or 0.5 percent, to 15,010.74. About 5.3 billion shares exchanged hands on U.S. exchanges today, 16 percent below the three-month average. The benchmark 10-year yield jumped to 2.88 percent.

“We are still in that dead zone where there is a void of catalysts — no Fed, no earnings, summer holidays, etc.,” Jeff Saut, the St. Petersburg, Florida-based chief investment strategist at Raymond James & Associates, wrote in a note to investors today. He helps oversee about $400 billion “I think rallies are for selling on a trading basis, but remain quite bullish on the longer-term.”

The S&P 500 declined 2.1 percent last week and the Dow average lost 2.2 percent, the largest weekly drop in 14 months, amid speculation the Fed will pare its bond-purchase program as the economy recovers.

The Federal Open Market Committee will release minutes of its July 30-31 meeting on Aug. 21. Investors and analysts will be looking for clues on when central bankers plan to reduce their $85 billion in monthly asset purchases. Officials will begin to trim buying at their Sept. 17-18 meeting, according to 65 percent of economists surveyed by Bloomberg on Aug. 9-13.

Central bankers and policy makers meet in Jackson Hole, Wyoming, from Aug. 22 to Aug. 24 to discuss the global economy and monetary policy.

Fed stimulus helped propel the S&P 500 up more than 150 percent from its bear-market low in 2009. Benchmark indexes reached record highs on Aug. 2. The S&P 500 has dropped 3.7 percent since then, and is trading below its average price over the past 50 days.

Some 41 S&P 500 stocks had their 14-day relative-strength index below 30 at the end of last week, the most since Nov. 16, Bloomberg data show. RSI measures the degree to which gains and losses outpace each other and some analysts who watch charts to predict market moves consider a reading lower than 30 as indicating the stock has fallen too far too fast.

Of the 464 companies in the S&P 500 that have reported earnings so far, 72 percent have topped analysts’ estimates, according to data compiled by Bloomberg. About 55 percent have exceeded revenue projections. About 23 S&P 500 companies are scheduled to release quarterly results this week.

“This is the difficult period of a rest area for the market, which is the time right after earnings and just before some major policy debates,” Chris Hyzy, who helps oversee about $325 billion as chief investment officer of U.S. Trust, said in a phone interview.

The Chicago Board Options Exchange Volatility Index, or VIX, climbed 5.1 percent today to 15.10. While the gauge has advanced 28 percent since a low on Aug. 5, it remains 16 percent lower for the year.

Energy shares had the largest decline today, dropping 1.5 percent. West Texas Intermediate crude dropped for the first time in seven days as the threat of a storm in the Gulf of Mexico dissipated, removing a risk to oil and gas production in the area. Oil also slid because demand from U.S. refineries is declining as the peak gasoline-use period comes to an end. WTI capped the longest rising streak since April on Aug. 16 amid unrest in Egypt.

Apache fell 4.6 percent to $75.37, leading declines in energy stocks. The company extended a five-day tumble as Stifel Nicolaus & Co. cut its rating on the shares to a hold from buy.

Exxon Mobil lost 1.1 percent to $86.92. The biggest energy company by market value has tumbled 8.7 percent since July 23, when it reached a record high.

Marathon Oil Corp. slumped 4.3 percent to $32.61, the lowest since May. Valero Energy Corp. declined 2.7 percent to $34.47.

Cobalt International Energy Inc. fell 15 percent to $24.90 after the oil exploration company said it found no commercial hydrocarbons in its Ardennes well in the Gulf of Mexico.

Financial shares tumbled 1.3 percent. Genworth Financial Inc. fell 4.5 percent to $12.02. Invesco Ltd. lost 1.9 percent to $31.20.

JPMorgan Chase & Co. slid 2.7 percent to $51.83. The U.S. Securities and Exchange Commission’s anti-bribery unit is investigating whether the bank hired the children of Chinese officials to help its business, The New York Times reported.

Zillow Inc. lost 7.1 percent to $84.74. The operator of the largest real-estate information website agreed to acquire StreetEasy for $50 million in cash to expand its coverage of the New York housing market.

Intel gained 1.7 percent to $22.28. Piper Jaffray changed its rating on the shares to neutral from underweight and raised its price target to $22 from $20.

Apple Inc. rose 1.1 percent to $507.74. The shares have gained 12 percent in the last six trading days. Billionaire Carl Icahn said Aug. 13 that he had acquired a large position in the company. The maker of iPads and iPhone has pared its decline from an all-time high in September to 28 percent.

Health-care companies rose 0.2 percent for the only advance among 10 S&P 500 groups as a group. Intuitive Surgical Inc. gained 1.8 percent to $384.95. Gilead Sciences Inc. increased 0.8 percent to $57.34.

Edwards Group soared 18 percent to $10 after Atlas Copco, the world’s largest maker of air compressors, agreed to pay $1.2 billion for the British vacuum-pump maker. Shareholders of the Crawley, England-based company will receive as much as $10.50 a share depending on financial results for this year, Atlas Copco said in a statement today.

Dollar General Corp. gained 3.1 percent to $54.09 as JPMorgan changed its rating on the shares to the equivalent of a buy from hold. The firm increased its target price to $64 from $51.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

The question of whether or not there is a God or truth or reality, or whatever you like to call it,

can never be answered by books, by priests, philosophers or saviors.

Nobody and nothing can answer the question but you yourself and that is why you must know yourself.

Immaturity lies only in total ignorance of self.

To understand yourself is the beginning of wisdom.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

The best revenge is massive success.

-Frank Sinatra, 1915-1998

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

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:

As Carolann is out of the office this afternoon, I will be sending the newsletter on her behalf.

Next weekend, Stanley Park will be marking the 125^th birthday of the 400-hectar park, by hosting special events in the park.  Visitors will be able to go on walking tours, watch hummingbirds, visit the police stables, and learn all about the history of the park. There are more than 200 activities and performances scheduled to take place at five festival zones.  Did you know, Stanley Park is visited by an estimated eight million people a year and is named after the same governor general, Frederick Stanley, memorialized by the NHL’s Stanley Cup.  Also, earlier this year, Travel and Leisure magazine ranked it among the world’s most beautiful city parks, citing its skyline views and its 500,000 cedar, fir and hemlock trees.  Be sure to stop by!

“Believe in yourself! Have faith in your abilities! Without a humble but reasonable confidence in your own powers you cannot be successful or happy.” – Norman Vincent Peale

Photos of the Day –August 16^th, 2013

Zakaria Alakory (r.), 19, and Assem Al khshmy (l.), 16, practice parkour on the beach in Benghazi, Libya. Esam Omran Al-Fetori/Reuters

The MV Maersk Mc-Kinney Moller, the world’s biggest container ship, arrives at the harbour of Rotterdam, Netherlands. The 55,000 ton ship, named after the son of the founder of the oil and shipping group A.P. Moller-Maersk, has a length of 400 meters and cost $185 million. Michael Kooren/Reuters

Market Closes for August 16^th, 2013

Market  Index	Close	Change
Dow  Jones	15081.47	-30.72    -0.20%
S&P 500	1655.83	-5.49    -0.33%
NASDAQ	3602.778	-3.339    -0.09%
TSX	12736.92	+32.40
		+0.26%

International Markets

Market  Index	Close	Change
NIKKEI	13650.11	-102.83
		-0.75%
HANG  SENG	22517.81	-21.44
		-0.10%
SENSEX	18598.18	-769.41
		-3.97%
FTSE 100	6499.99	+16.65
		+0.26%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.706	2.677
CND.   30 Year Bond	3.175	3.148
U.S.   10 Year Bond	2.8251	2.7700
U.S.   30 Year Bond	3.8483	3.8176

Currencies

BOC Close	Today	Previous
Canadian $	0.96735	0.97051
US   $	1.03375	1.03038
Euro Rate  1 Euro=		Inverse
Canadian   $	1.37802	0.72568
US  $	1.33303	0.75017

Commodities

Gold	Close	Previous
London Gold   Fix	1376.87	1364.03
Oil	Close	Previous
WTI Crude Future	107.46	107.33
BRENT	109.359	109.359

Market Commentary:

Canada

By Eric Lam

Aug. 16 (Bloomberg) — Canadian stocks rose, sending the benchmark index to its biggest weekly advance since July 19, after energy producers advanced amid increased turmoil in Egypt.

Bankers Petroleum Ltd. climbed a fourth day to the highest level in a year. Endeavour Silver Corp. rose 2.1 percent as silver prices rallied for a seventh straight day, the longest streak since January. BlackBerry Ltd. fell 3.9 percent.

The Standard & Poor’s/TSX Composite Index rose 32.40 points, or 0.3 percent, to 12,736.92 at 4 p.m. in Toronto. The index gained 1.6 percent for the week.

“We have people who had been busy selling commodities, and we’re in the kind of market where that can turn on a dime and now they’re jumping back in,” said David Cockfield, fund manager with Northland Wealth Management in Toronto. The firm manages about C$200 million ($193 million). “The market is very sensitive right now and everybody is watching everybody else.”

Energy stocks gained 0.7 percent as a group as six of 10 industries advanced in the S&P/TSX. Trading volume was 7.6 percent higher than the 30-day average at this time of the day.

Bankers Petroleum jumped 5.7 percent to C$3.51, the highest close since May 2012. Suncor Energy Inc., Canada’s largest oil producer, added 1 percent to C$35.33.

Crude rose 13 cents to settle at $107.46 a barrel in New York. Oil futures have advanced for six straight sessions, the longest streak since April, as clashes in Egypt raised concern that Middle East supply will be cut. Thousands of people poured into the streets in Egypt today to protest the killing of supporters of ousted president Mohamed Mursi.

Algonquin Power & Utilities Corp. increased 3.7 percent to C$6.94 after Sean Steuart, analyst with TD Securities, raised his rating for the stock to buy from hold. Algonquin owns and invests in renewable power assets across North America.

Centerra Gold Inc. rose 0.3 percent to C$6.22, paring an earlier rally of 6.1 percent. The company advanced for an eighth day of gains, the longest streak since January 2008. New Gold Inc. increased 2.2 percent to C$7.97. Gold for December delivery gained 0.7 percent to settle at $1,371, the highest in two months.

Endeavour Silver added 2.1 percent to C$5.44. Silvercorp Metals Inc. increased 1.8 percent to C$3.95, rising for an eighth day.

Silver rose 1.7 percent to $23.372 an ounce in New York.

The precious metal climbed 15 percent this week.

BlackBerry dropped 3.9 percent to C$10.86. Chief Executive Officer Thorsten Heins stands to make $55.6 million if he sells the company and is ousted, according to a May proxy filing.

The smartphone maker, which has seen its market share erode against competitors including Apple Inc. and Google Inc., announced on Aug. 12 it would form a board committee to investigate a potential sale, joint venture or strategic partnerships. The stock has jumped 8.4 percent this week.

US

By Alex Barinka

Aug. 16 (Bloomberg) — U.S. stocks fell, giving the Standard & Poor’s 500 Index its biggest weekly drop in almost two months, as investors weighed data showing housing starts climbed in July while a gauge of consumer confidence fell.

Eight of 10 industries in the benchmark index retreated, led by a drop among high-yielding dividend stocks as Treasury 10-year rates rose to a two-year high. Verizon Communications Inc. lost 1.7 percent as phone stocks sank. Real-estate shares plunged 2.2 percent as a group to the lowest level since November. Nordstrom Inc. lost 4.9 percent as the retailer cut its annual sales forecast.

The S&P 500 dropped 0.3 percent to 1,655.83 at 4 p.m. in New York. The benchmark gauge lost 2.1 percent in the past five days, the most in a week since June 21. The Dow Jones Industrial Average slipped 30.72 points, or 0.2 percent, to 15,081.47. The 30-stock index plunged 2.2 percent this week, the most since June 2012. About 5.9 billion shares exchanged hands on U.S. exchanges today, 6.6 percent below the three-month average.

“People seem to be in a mode of not being too excited about the U.S. right now,” Brian Burrell, equity research analyst for Thornburg Investment Management Inc., said in a telephone interview from Santa Fe, New Mexico. His firm oversees about $90 billion. “People are scrutinizing these data points and trying to get a read on what is going to happen and how the Fed is going to react.”

The S&P 500 lost 1.4 percent yesterday, as forecasts from Cisco Systems Inc. and Wal-Mart Stores Inc. disappointed while improving economic data pushed bond yields higher amid concern the Federal Reserve will reduce stimulus. The gauge has fallen 3.2 percent since closing at a record on Aug. 2.

Data today showed new-home construction in July climbed 5.9 percent to an 896,000 annualized rate from a revised 846,000 pace in June that was higher than previously reported. Builders started work on fewer single-family homes in July, marking a pause in the residential construction rebound that’s helping to propel the U.S. economy.

Consumer confidence in the U.S. unexpectedly dropped in August from a six-year high as Americans faced rising interest rates. The Thomson Reuters/University of Michigan preliminary August index of consumer sentiment fell to 80 from 85.1 last month, which was the highest since July 2007.

A separate report from the Labor Department indicated the productivity of U.S. workers rose more than projected in the second quarter as the world’s largest economy expanded output.

Central bank policy makers have been scrutinizing economic data to determine the timing and pace of any reduction in its $85 billion in monthly bond purchases. The Fed stimulus helped propel the S&P 500 up more than 150 percent from its low in 2009.

“One can’t go a day without thinking about what the Fed’s policy is going to be because central banks are the elephant in the room,” Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC in Pittsburgh, which manages $58 billion, said in a phone interview. “I would not be surprised to see a little bit more slop in the equity markets here over the coming days and weeks.”

The Fed will reduce the monthly purchases at its meeting on Sept. 17-18, according to 65 percent of economists surveyed by Bloomberg from Aug. 9 to Aug. 13. In a survey last month, half of economists predicted a reduction at next month’s meeting. The first step may be small, with monthly purchases tapered by $10 billion to a $75 billion pace, the survey showed.

The Chicago Board Options Exchange Volatility Index, or VIX, fell 2.4 percent today to 14.37 after yesterday touching the highest level this month. While the gauge has advanced 21 percent since Aug. 5, it remains 20 percent lower for the year.

Investors seeking shelter from yesterday’s $100 billion stock selloff pushed volume to a two-month high in U.S. equity volatility futures, contracts that have already seen more trading in 2013 than all of last year.

About 234,000 futures contracts on the Chicago Board Options Exchange Volatility Index, or the VIX, changed hands yesterday. That’s the most since June 21, according to data compiled by Bloomberg.

“I expect volatility and the VIX to have a bias towards creeping higher as we approach the September FOMC meeting,” Trevor Mottl, Susquehanna Financial Group LLLP’s New York-based head of derivatives strategy, said yesterday in a phone interview. Volatility will “remain slightly elevated as investors come to grips with implications from a reduction in stimulus,” he said.

High-yielding stocks declined today on concern rising bond rates will reduce demand for equity income. Yields on 10-year Treasury notes surged six basis points to 2.83 percent, the highest since July 2011.

Telephone stocks, which have the highest yield among 10 industries, slid 1 percent. Verizon lost 1.7 to $47.71 for the biggest drop in the Dow. Utilities, ranked the second highest with a 4.1 percent yield, fell 1.1 percent.

An S&P index of real-estate stocks sank for the 14th time in 15 sessions, losing 2.2 percent today for the biggest slide in the among 24 groups in the benchmark gauge. Kimco Realty Corp. dropped 3.7 percent to $20.50 to pace losses.

Nordstrom retreated 4.9 percent to $56.43. Sterne, Agee & Leach lowered its rating the stock to neutral from buy after the Seattle-based fashion retailer cut its annual earnings forecast late yesterday.

J.C. Penney Co. fell 3.1 percent to $13.40. The slide snapped a two-day rally that pushed the stock up 9.1 percent after investor Bill Ackman resigned from the board. The company reports results Aug. 20 and analysts project a second-quarter net loss that will widen and sales that will fall 8 percent, according to estimates compiled by Bloomberg.

An index that tracks homebuilder stocks rose 0.1 percent, retreating from an intraday high of 3.4 percent. The S&P Supercomposite Homebuilding Index has fallen 6.1 percent this year. PulteGroup Inc. added 2.3 percent to $16.28.

Aspen Technology Inc. surged 7.9 percent to $34.32. The supplier of software products reported fourth-quarter revenue of $83.3 million, topping the median analyst forecast of $78.8 million.

Pandora Media Inc. added 2.5 percent to $20.34. Goldman Sachs increased its rating on the biggest online radio service to buy from neutral.

 

Have  a wonderful evening everyone.

 

Be magnificent!

 

“Not everything that is faced can be changed, but nothing can be changed until it is faced.” – James Baldwin

As ever,

 

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc

 

Dear Friends,

Tangents:

As Carolann is out of the office this afternoon, I will be sending the newsletter on her behalf.

Are you a fan of Indian Food? I was reading an Times Colonist and came across an article about Indian Food.  Chef Raghavan Iyer has released a cooking book titled “Indian Cooking Unfolded”, which shares the basics of Indian cooking.  It gives detailed instructions, with simple recipes that usually include fewer than 10 ingredients.  I thought I would share one with you:

Creamy Chicken Kebabs

1/2 cup half-and-half

6 medium-sized cloves of garlic

4 pieces fresh ginger (each about the size and thickness of a quarter; no need to peel the skin)

1 1/2 tsp. coarse kosher or sea salt

1 tsp garam masala spice mix

1/2 tsp cayenne pepper

1 1/2 lb skinless, boneless chicken breasts, cut at a diagonal into centimeter-wide strips

nonfat cooking spray

1 small red onion, cut in half lengthwise and thinly sliced

2 Tbsp finely chopped fresh cilantro, leaves and tender stems

1 large lime, cut into 8 wedges

To get the cooking instructions for this delicious recipe visit:

http://www.timescolonist.com/life/creamy-chicken-kebabs-take-taste-buds-to-india-1.586348

“Develop success from failures. Discouragement and failure are two of the surest stepping stones to success.” – Dale Carnegie

Photos of the Day –August 15^th, 2013

A station clock is pictured at a platform of the main train station in Mainz, Germany. German rail operator Deutsche Bahn cancelled most of its regional service in Mainz due to lack of personnel. Ralph Orlowski/Reuters

A taxi is driven past a trash bin in central London. Officials say that an advertising firm, Renew, must immediately pull the plug on a program using its network of high-tech trash cans like the one pictured, which measures the Wi-Fi signals emitted by smartphones to track people walking through London’s financial district. Lefteris Pitarakis/AP

Market Closes for August 15^th, 2013

Market  Index	Close	Change
Dow  Jones	15112.19	-225.47    -1.47%
S&P 500	1662.51	-22.88    -1.36%
NASDAQ	3606.117	-63.156    -1.72%
TSX	12685.68	+46.38
		+0.37%

International Markets

Market  Index	Close	Change
NIKKEI	13752.94	-297.22
		-2.12%
HANG  SENG	22539.25	-1.88
		-0.01%
SENSEX	19367.59	+137.75
		+0.72%
FTSE 100	6483.34	-104.09
		-1.58%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.677	2.628
CND.   30 Year Bond	3.148	3.100
U.S.   10 Year Bond	2.7700	2.7081
U.S.   30 Year Bond	3.8176	3.7462

Currencies

BOC Close	Today	Previous
Canadian $	0.97051	0.96748
US   $	1.03038	1.03361
Euro Rate  1 Euro=		Inverse
Canadian   $	1.37561	0.72695
US  $	1.33505	0.74904

Commodities

Gold	Close	Previous
London Gold   Fix	1364.03	1335.50
Oil	Close	Previous
WTI Crude Future	107.33	106.83
BRENT	109.359	109.359

Market Commentary:

Canada

By Eric Lam

Aug. 15 (Bloomberg) — Canadian stocks rose to a three-week high, as commodities producers rallied after unrest in Egypt sent crude higher and gold surged amid concern the U.S. Federal Reserve will curb stimulus measures.

Eldorado Gold Corp. and Iamgold Corp. soared more than 7.7 percent as gold rose to an eight-week high. Bankers Petroleum Ltd. jumped 5.7 percent to pace gains among energy producers.

Brookfield Asset Management Inc. declined 3.4 percent after existing home sales in July recorded their smallest gain in five months. Valeant Pharmaceuticals International Inc. slid 1.1 percent, giving health-care stocks the biggest drop in the benchmark index.

The Standard & Poor’s/TSX Composite Index rose 65.22 points, or 0.5 percent, to 12,704.52 at 4 p.m. in Toronto, the highest since July 23. Trading volume was 31 percent higher than the 30-day average at this time of the day.

“The tapering view has been reinforced today,” said Andrew Pyle, a fund manager with ScotiaMcLeod Inc. in Peterborough, Ontario. He manages about C$210 million ($204 million). “Gold is picking up because of the volatility in bonds and stocks, and then you also have what’s going on in Egypt, which is a very significant development given the extent of what’s happening. Any type of volatility in that region tends to support crude prices due to supply disruptions.”

The S&P/TSX erased earlier losses of as much as 0.6 percent, initially following U.S. and global equities lower amid concern the Fed will withdraw stimulus this fall after data showed U.S. jobless claims dropped to the lowest level in almost six years.

The central bank has said it will consider reducing its monthly bond purchases as the economy shows signs of improvement. The tapering concerns drove U.S. Treasury yields to two-year highs and gave U.S. equities the worst drop since June.

Monetary support has bolstered equities around the world.

The tumble in global stocks — only four of 24 developed markets rose today — boosted demand for gold as an alternative investment. The metal traded above $1,350 for the first time since June 20, reversing an earlier decline of as much as 1.2 percent. Oil rose for a fifth day as unrest in Egypt bolstered concern supplies could be cut. Commodity stocks account for nearly 39 percent of S&P/TSX.

Materials producers rallied 3.8 percent and energy companies added 0.8 percent, as four out of 10 groups in the benchmark index advanced.

Eldorado Gold soared 7.7 percent to C$9.50 and Iamgold climbed 11 percent to C$6.66. Centerra Gold jumped 11 percent to C$6.20, extending its winning streak to seven days, the longest since May 2012.

Suncor Energy Inc. advanced 3.5 percent to C$34.97, the highest since January, after Warren Buffett’s Berkshire Hathaway Inc. reported a stake in the energy producer.

Buffett’s firm owned 17.8 million Suncor shares on June 30, valued at more than $500 million, Berkshire said today in a regulatory filing.

Five energy stocks rose for every one that fell, led by a 5.7 percent surge in Bankers Petroleum to C$3.32.

Telus Corp. rallied 4.8 percent to C$32.21 and Rogers Communications Inc. gained 5 percent to C$42.45 to pace gains among phone stocks. The Globe and Mail reported that Verizon Communications Inc. has delayed possible takeover bids for smaller wireless carriers Wind Mobile and Mobilicity, without naming sources.

Financial stocks lost 0.6 percent, as data showed existing home sales in Canada rose 0.2 percent last month, down from a 3.3 percent pace in June and 3.6 percent in May. Toronto- Dominion Bank, Canada’s second-largest lender, slid 0.6 percent to C$86.75

Brookfield Asset Management dropped 3.4 percent to C$37.01 and Canadian Apartment Properties Real Estate Investment Trust retreated 0.6 percent to C$20.68 to pace declines among real- estate stocks.

Valeant Pharmaceuticals slid 1.1 percent to C$106.12, extending a two-day decline after closing at a record Aug. 13.

The drop helped drag health-care stocks 1.4 percent lower as a group.

US

By Alex Barinka and Katie Brennan

Aug. 15 (Bloomberg) — U.S. stocks fell the most since June as forecasts from Cisco Systems Inc. and Wal-Mart Stores Inc. disappointed while improving economic data pushed bond yields higher amid concern the Federal Reserve will reduce stimulus.

All 10 major industries in the S&P 500 retreated, with technology and consumer-discretionary shares dropping more than 1.7 percent. Cisco and Wal-Mart lost at least 2.6 percent after reporting earnings. Gannett Co. tumbled 5.1 percent after Warren Buffett’s Berkshire Hathaway Inc. exited its stake in the newspaper publisher. Homebuilders rallied as confidence in the industry rose to the highest level since 2005 despite rising mortgage rates.

The Standard & Poor’s 500 Index slipped 1.4 percent, the most since June 20, to 1,661.32 at 4 p.m. in New York. The Dow Jones Industrial Average dropped 225.47 points, or 1.5 percent, to 15,112.19, the lowest level since July 3. About 6.6 billion shares exchanged hands on U.S. exchanges today, 4.5 percent above the three-month average. Treasury yields rose to the highest levels in two years.

“With weaker earnings, higher interest rates and geopolitical concerns, risk assets like stocks don’t do well in that type of environment,” Jim Russell, the senior equity strategist for U.S. Bank Wealth Management, said in an interview from Cincinnati. His firm oversees $110 billion. “The jobless claims numbers were sufficiently strong that taper fears are probably front and center in terms of display today.”

Reports today showed claims for jobless benefits unexpectedly dropped last week to the lowest level in almost six years, signaling the U.S. job market continues to mend. The cost of living rose in July for a third month, supporting the Fed’s forecast that inflation will move closer to its target.

Industrial production in the U.S. was unchanged in July.

Separate Fed reports showed manufacturing in the Philadelphia and New York regions expanded in August at a slower-than- anticipated pace.

“We could still be in an environment where the market is having difficulty digesting some positive data points because of the possible end result of tapering happening sooner or more forcefully than we would like,” Kristina Hooper, U.S. head of investment and client strategies at Allianz Global Investors, said in an interview from Frankfurt. Her firm oversees more $409 billion.

The Fed, led by Chairman Ben S. Bernanke, will probably reduce its $85 billion in monthly bond purchases at its meeting on Sept. 17-18, according to 65 percent of economists surveyed by Bloomberg from Aug. 9 to Aug. 13. In a survey last month, half of economists predicted a reduction at next month’s meeting. The first step may be small, with monthly purchases tapered by $10 billion to a $75 billion pace, the survey showed.

Central-bank stimulus helped propel the S&P 500 up more than 150 percent from its low in 2009. The rally that sent the index up 20 percent in 2013 to a record 1,709.67 on Aug. 2 was the broadest in at least 23 years, with 445 companies higher for the year on that date.

Since peaking, the benchmark gauge for U.S. equities has retreated 2.8 percent, while the Russell 2000 measure of small- cap stocks has dropped 3 percent, the S&P 500 Financials Index has fallen 3.7 percent and the Dow Jones Transportation Average has slid 4.7 percent, data compiled by Bloomberg show.

Turmoil in Egypt is also weighing on markets. Hundreds of supporters of ousted President Mohamed Mursi torched government headquarters in Giza, as the death toll rose above 500 after a crackdown on Islamists calling for his reinstatement.

Today’s decline broke a month-long fluctuation for the S&P 500 and ended the calmest trading period in six months. The benchmark index was confined to a 35-point range from July 11 through yesterday, with intraday price changes averaging 0.68 percent over the past 30 days, the smallest swing over a comparable period since Feb. 19, data compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index, or VIX, climbed 13 percent today to 14.73, the highest level since July 8. The equity volatility gauge has jumped 24 percent since Aug. 5.

The Morgan Stanley Cyclical Index fell 1.5 percent, the most since June 24. Consumer-discretionary stocks had the biggest retreat among S&P 500 groups, tumbling 1.8 percent. Home Depot Inc. dropped 3 percent to $75.14, extending a two-day decline to 5.4 percent.

The KBW Bank Index slumped 1.2 percent as all 24 members decreased. Citigroup Inc. lost 1.4 percent to $50.86 and JPMorgan Chase & Co. dropped 1.6 percent to $53.29.

Wal-Mart, the world’s largest retailer, fell 2.6 percent to $74.41. The world’s largest retailer cut its annual profit forecast after shoppers’ reluctance to buy more than the bare necessities hurt second-quarter sales.

Cisco sank 7.2 percent to $24.49 as the biggest maker of networking equipment said revenue for the current quarter through October will be $12.2 billion to $12.5 billion. Analysts on average had projected sales of $12.5 billion.

The company is eliminating 4,000 jobs amid weaker sales in Japan, China and Europe, Chief Executive Officer John Chambers said on a conference call yesterday.

Semiconductor companies tumbled 2.3 percent as a group.

Micron Technology Inc. dropped 4.7 percent to $14.13. Advanced Micro Devices Inc. slid 3.4 percent to $3.69.

“The second half of the year is supposed to be so great, but then Wal-Mart’s earnings are lackluster and so limp, and Cisco is saying things are not as great as they were last quarter,” Chad Morganlander, a Florham Park, New Jersey-based money manager who helps oversee about $130 billion at Stifel Nicolaus & Co., said in a telephone interview. “This is a reminder that although economic deceleration has abated, earnings for corporations across the globe are hard to come by.”

Of the 463 companies in the benchmark index that have reported quarterly results this period, 72 percent have exceeded analysts’ profit estimates, data compiled by Bloomberg show.

Some 55 percent have topped forecasts for revenue.

Gannett, which has proposed buying Belo Corp., slid 5.1 percent to $24.29. A filing showed that Buffett’s Berkshire Hathaway exited its stake in Gannett during the second quarter.

Automotive stocks fell the most among 24 industries in the S&P 500. Ford Motor Co. retreated 2.7 percent to $16.43. Delphi Automotive Plc slid 2.4 percent to $54.20 after filings showed a selloff of shares as of June 30 by holders including David Einhorn’s Greenlight Capital Inc., Dan Loeb’s Third Point LLC, John Paulson’s Paulson & Co. and Paul Singer’s Elliott Management Corp.

Onyx Pharmaceuticals Inc. declined 7.2 percent to $115.34.

Talks over Amgen Inc.’s proposed takeover of the maker of blood- cancer medication have stalled over a dispute about access to data from an ongoing drug trial even as the two sides have a general agreement on price, said three people familiar with the matter.

“Amgen does not comment on market rumors,” said Christine Regan, a spokeswoman for the Thousand Oaks, California-based company. Lori Melancon, a spokeswoman for Onyx, declined to comment on the report of the talks.

Hewlett-Packard Co. retreated 4.5 percent to $25.95. Rival Lenovo Group Ltd. reported first-quarter profit that beat analyst estimates after increasing its global market share for tablet computers, smartphones and personal computers.

An S&P index of homebuilders rallied 4.4 percent, reversing an earlier decline of as much as 3.3 percent. Confidence in the industry rose in August to the highest level since 2005, a report showed today, as demand for new homes supports the market amid rising mortgage rates. The homebuilders index slumped 10 percent this year through yesterday, when it closed at the lowest level since November.

D.R. Horton Inc. climbed 5.7 percent to $19.12, halting an eight-day decline. PulteGroup Inc. surged 5.3 percent to $15.91.

KB Home rose 5.3 percent to $17.21. Lennar Corp. increased 5.1 percent to $33.28.

Newmont Mining Corp. gained 4 percent to $33.22 after gold futures jumped to an eight-week high as demand for the metal as an alternative investment increased. Gold’s rally followed a 20 percent plunge for the year through yesterday amid the U.S. equity rally and low inflation.

Kohl’s Corp. surged 5.3 percent to $53.51. The third- largest U.S. retailer forecast sales for this quarter that beat some analysts’ estimates. Chief Financial Officer Wes McDonald told investors on a conference call that Kohl’s was “very pleased” with initial back-to- school sales.

Estee Lauder Cos. climbed 3.4 percent to $67.36 after the makeup manufacturer’s fourth-quarter earnings beat estimates.

 

Have  a wonderful evening everyone!

 

Be magnificent!

 

“Watch your thoughts; they become words.
Watch your words; they become actions.
Watch your actions; they become habits.
Watch your habits; they become character.
Watch your character; it becomes your destiny.”

—Lao-Tze

 

As ever,

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

Dear Friends,

Tangents:

As Carolann is out of the office this afternoon, I will be sending the newsletter on her behalf.

Looking for a new way to travel around downtown Victoria?  Check out the Victoria Harbour Ferry! Offering about 16 designated pick-up spots and stops for shopping, eating, touring and sleeping, Victoria Harbour Ferry offers tours, charters and a hop-on, hop-off taxi service from 10 a.m. to 9 p.m. throughout the summer. The delight for many passengers is the discovery that the journey might be the best part of the trip. Hop-on and hop-off locations cost as little as $5 per person for most destinations from the Fairmont Empress dock within the Inner Harbour, $10 further out and $15 for locations including Bamfield Park and Tillicum Landing at Tillicum Road. It’s a fun way to travel and see the beautiful sights our gorgeous city has to offer!

“Don’t cry because it’s over, smile because it happened.” ― Dr. Seuss

Photos of the Day –August 14^th, 2013

South Koreans take part in a candlelight demonstration demanding the resignation of President Park Geun-Hye and calling for reform at the national spy agency in central Seoul. According to local media reports, the spy agency’s former chief Won Sei-hoon, who served under the regime of former President Lee Myung-Bak, was indicted on June 14, 2013 on charges of ordering an online smear campaign to sway public opinion in favor of the ruling Saenuri Party candidate Park Geun-hye before last December’s presidential election, in violation of the country’s election law. Lee Jae-Won/Reuters

A woman stands on a lotus-shaped island as a boatman takes tourists for a ride around a lake at Zizhuyuan Park, known as Purple Bamboo Park in Beijing, China. Purple Bamboo Park, one of the seven biggest parks in Beijing, is a classical Chinese garden which draws many tourists. Andy Wong/AP

Market Closes for August 14^th, 2013

Market  Index	Close	Change
Dow  Jones	15337.66	-113.35    -0.73%
S&P 500	1685.34	-8.82    -0.52%
NASDAQ	3669.273	-15.170    -0.41%
TSX	12651.33	+9.14
		+0.07%

International Markets

Market  Index	Close	Change
NIKKEI	14050.16	+183.16
		+1.32%
HANG  SENG	22541.13	+269.85
		+1.21%
SENSEX	19367.59	+137.75
		+0.72%
FTSE 100	6587.43	-24.51
		-0.37%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.628	2.624
CND.   30 Year Bond	3.100	3.096
U.S.   10 Year Bond	2.7081	2.7181
U.S.   30 Year Bond	3.7462	3.7577

Currencies

BOC Close	Today	Previous
Canadian $	0.96748	0.96658
US   $	1.03361	1.03457
Euro Rate  1 Euro=		Inverse
Canadian   $	1.37017	0.72984
US  $	1.32561	0.75437

Commodities

Gold	Close	Previous
London Gold   Fix	1335.50	1321.57
Oil	Close	Previous
WTI Crude Future	106.85	106.83
BRENT	109.359	109.359

Market Commentary:

Canada

By Eric Lam

Aug. 14 (Bloomberg) — Canadian stocks fell for the first time in three days, retreating from a two-week high, as retailers including Rona Inc. retreated on weaker-than-estimated results.

Rona dropped 3.7 percent as earnings fell short of projections. Metro Inc. fell the most since May 2010 after announcing it will take a C$40 million ($39 million) charge to reorganize its Ontario store network and that sales fell short of estimates. First Majestic Silver Corp. and Silvercorp Metals Inc. rallied at least 7.6 percent to lead raw-materials producers higher as the metal advanced for a fifth day.

Three stocks fell for every two that rose as the Standard & Poor’s/TSX Composite Index slipped 2.89 points, or less than 0.1 percent, to 12,639.30 at 4 p.m. in Toronto. The index swung as high as 0.2 percent and as low as 0.2 percent.

“The Canadian economy is growing marginally slower than the U.S., so companies missing estimates is to be expected,” said Anish Chopra, a fund manager with TD Asset Management Inc. in Toronto. The firm manages C$216 billion. “When you look at precious metals, for both gold and silver the pricing has come down significantly so there are people who think there’s value at these levels.”

Economists estimate Canadian gross domestic grew 1.6 percent in the second quarter, according to a Bloomberg survey.

The U.S economy expanded by 1.7 percent in that period.

Eight of 10 main industries in the gauge fell, with consumer staples stocks dropping 1.4 percent. Materials producers added 2.3 percent as a group.

Metro declined 3.7 percent to C$69.30, the lowest since July 5. Canada’s third largest grocery chain reported a 0.9 percent drop in same-store sales last quarter, the worst result in at least 10 years, data compiled by Bloomberg show. The figure measures performance at locations open for at least a year. Metro reported sales of C$3.57 billion in the period, compared with analysts’ estimates for C$3.64 billion.

Rona dropped 3.7 percent to C$10.84. The country’s largest home-improvement store chain posted second-quarter adjusted earnings of 28 Canadian cents, short of the 33 cents estimated by analysts.

Same-store sales fell 1 percent in the quarter, affected by poor weather, a June strike in the Quebec construction industry and falling housing starts across the country, Rona said in a statement.

Silvercorp Metals soared 7.6 percent to C$3.84, highest in four months, and First Majestic jumped 9.3 percent to C$14.85.

Silver rallied for a fifth straight day, advancing 12 percent in that time. The metal remains 28 percent lower in 2013.

Kinross Gold Corp. added 6.5 percent to C$5.94 and Iamgold Corp. rose 6.9 percent to C$6.01 as the price of gold increased for the fifth time in six sessions. The metal had fallen 21 percent this year through yesterday.

Teck Resources Ltd. gained 2.7 percent to C$28.42, the highest since May, as copper traded near a nine-week high.

Bankers Petroleum Ltd. climbed 3 percent to C$3.14. Oil revenue surged 34 percent to $131.8 million as production rose to 17,866 barrels a day in the second quarter, compared with 14,161 barrels a year ago.

Bankers said it will ramp up spending on surface facilities in the second half of the year, including the potential acquisition of a sixth drilling rig that should allow the company to reach the “high-end of our annual guidance,” Chief Executive Officer David French said in a statement.

US

By Nick Taborek and Lu Wang

Aug. 14 (Bloomberg) — U.S. stocks fell, sending the Standard & Poor’s 500 Index lower for the sixth time in eight days, after economists predicted the Federal Reserve will reduce stimulus in September as European data added to signs that the global economy is strengthening.

Macy’s Inc. fell 4.5 percent as the department-store chain cut its profit forecast after weaker-than-estimated sales.

Homebuilders and utility stocks slumped amid rising bond yields.

Apple Inc. rose 1.8 percent, extending a rally after billionaire investor Carl Icahn said yesterday he’s a shareholder. Cisco Systems Inc. tumbled 9.4 percent after the close of regular trading as it plans to cut 4,000 jobs.

The S&P 500 lost 0.5 percent to 1,685.39 at 4 p.m. in New York, the lowest level since July 29. The benchmark gauge has dropped 1.4 percent since a record high on Aug. 2. The Dow Jones Industrial Average declined 113.35 points, or 0.7 percent, to 15,337.66, the lowest since July 10. About 5.4 billion shares changed hands on U.S. exchanges, 14 percent below the three- month average.

“The market is scope-locked on Fed tapering in September,” Douglas Cote, chief market strategist at ING U.S.

Investment Management in New York, said in a telephone interview. His firm oversees $190 billion. “Quantitative easing is creating some excess in the financial system. The last thing Bernanke wants when he finishes his term is to be responsible for the next bubble.”

The S&P 500 has fallen from a record high this month on growing speculation the Fed will pare stimulus, or quantitative easing, this year. Central bank stimulus helped propel the S&P 500 up more than 150 percent from its bear-market low in 2009.

The Fed, led by Chairman Ben S. Bernanke, will probably reduce its $85 billion in monthly bond purchases at its meeting on Sept. 17-18, according to 65 percent of economists surveyed by Bloomberg from Aug. 9 to Aug. 13. In a survey last month, half of economists predicted a reduction at next month’s meeting.

A report today showed wholesale prices in the U.S. were little changed in July, reflecting the biggest drop in auto costs in four years. Fed policy makers continue to see inflation running below the central bank’s 2 percent goal even as the expansion picks up in the second half of the year.

Separate data showed the euro area’s economy emerged from a record-long recession in the second quarter, led by Germany and France. Gross domestic product expanded 0.3 percent after a 0.3 percent contraction in the first quarter, the European Union’s statistics office said.

Fed Bank of St. Louis President James Bullard, who has backed continued bond purchases by the Fed, said policy makers should be careful in changing course based solely on their economic forecasts, which have proven in the past to be too rosy.

Federal Open Market Committee forecasts “have tended to be too optimistic over the last several years,” Bullard, who votes on monetary policy this year, said today in the text of prepared slides for a speech in Paducah, Kentucky. “Given this experience, I think caution is warranted in taking policy action based on forecasts alone.”

Last week, Charles Evans, Sandra Pianalto and Richard Fisher, regional Fed presidents in Chicago, Cleveland and Dallas, said the central bank may be closer to tapering as the labor market recovers. Fed Bank of Atlanta President Dennis Lockhart said yesterday that policy makers may start to slow buying at any of their next few meetings amid “uneven performance” by the economy.

“The market is beginning to get a little nervous of the fact that most things are probably lining up towards a taper,” Burt White, chief investment officer who helps oversee $390 billion at LPL Financial in Boston, said in a phone interview.

“If you look at the data that’s been coming through in the last week or so, they’ve been supportive of taper.”

The Chicago Board Options Exchange Volatility Index, or VIX, rose 5.9 percent to 13.04. The equity volatility gauge reached its highest level this year in June and has since fallen 36 percent.

Nine of 10 S&P 500 industries slipped today as health-care and consumer-discretionary stocks fell the most, sinking at least 0.7 percent. Home Depot Inc. slid 2.5 percent to $77.44, for the largest drop in the Dow.

Macy’s fell 4.5 percent to $46.33. Chief Executive Officer Terry Lundgren used promotions during the quarter to clear inventory that had built up as a cool spring curtailed purchases of summer clothing and the bumpy economy restrained consumers’ spending.

Boeing Co. lost 2 percent to $104.16. The company’s 787 Dreamliner suffered a fresh setback after ANA Holdings Inc., the model’s biggest operator, said it discovered wiring defects in the fire-suppression system on three aircraft. Boeing’s flagship jet is already under scrutiny following a fire in London last month that U.K. investigators linked to an emergency beacon.

An S&P gauge of homebuilder stocks sank 1.8 percent to the lowest since November as yields on Treasuries approached the highest level this year, spurring concern rising interest rates will hinder a housing recovery. Ten of the index’s 11 members declined. PulteGroup Inc. slid 1.7 percent to $15.11. D.R. Horton Inc. fell 2.4 percent to $18.09 for an eighth day of losses.

US Airways Group Inc. slumped 1.2 percent to $16.17, extending its two-day slide to 14 percent. The U.S. Justice Department yesterday recommended blocking a proposed American Airlines-US Airways merger, saying the deal would lead to less competition in the industry and higher prices for consumers.

TripAdvisor Inc. tumbled 9.2 percent to $73.55 for the biggest drop in the S&P 500. The online travel research company fell after an executive speaking at the Canaccord Genuity Growth Conference in Boston said summer so far has been “bumpier” than forecast and traffic is “holding but not as strong” as anticipated.

Cree Inc. plunged 22 percent to $58.83. The maker of energy-efficient lighting products predicted earnings in the first quarter will be no more than 41 cents a share, missing the average analyst estimate by 2 cents.

Moody’s Corp. declined 5.1 percent to $65.50. The owner of the second-largest credit rater declined the most in six months as the pace of bond issuance worldwide slowed this month. Sales of corporate bonds have declined 32 percent to $97.7 billion this month, compared with $144 billion in the corresponding period of August 2012, according to data compiled by Bloomberg.

JDS Uniphase Corp. lost 3.9 percent to $14.23. The provider of network analytics for the telecommunications and broadband industries forecast first-quarter revenue below analysts’s estimates.

Cisco Systems tumbled 9.4 percent to $23.90 as of 5:16 p.m.

New York time. The biggest maker of networking equipment reported fiscal fourth-quarter profit and sales in line with estimates and said it would cut 4,000 jobs, or 5 percent of its work force. The company said the environment is improving, though not at the pace it wants.

Utilities, whose 4 percent yield is the second-highest among 10 industries, dropped 0.8 percent amid concern rising bond yields will cut demand for equity income.

Apple gained 1.8 percent to $498.50, and briefly traded above $500 for the first time since January. Icahn, the billionaire activist investor who has made a career of pushing companies to make changes to boost shares, bought $1 billion worth of stock and wants Apple to allocate $150 billion for a repurchase, said a person with knowledge of his plans who asked not to be named because the investment was made privately.

The maker of iPhones and iPads has rallied 9.7 percent over three days.

Brocade Communications Systems Inc. advanced 16 percent to $7.99. The networking-equipment maker reported third-quarter profit that beat estimates as demand for its products improved.

Steinway Musical Instruments Inc. climbed 7.9 percent to $41.29. The 160-year-old piano maker agreed to be acquired by Paulson & Co., the hedge fund owned by billionaire John Paulson, in a deal valuing the company at about $512 million. The offer for $40 a share tops that of private-equity firm Kohlberg & Co., which had bid $35 a share last month for Waltham, Massachusetts- based Steinway.

Newmont Mining Corp. rallied 6.2 percent to $31.94 for the biggest gain in the S&P 500. Cliffs Natural Resources Inc. increased 2.6 percent to $24.54. Freeport-McMoRan Copper & Gold Inc. jumped 1.4 percent to $31.59. Gold prices climbed 0.6 percent while copper added 0.8 percent.

 

Have  a wonderful evening everyone.

 

Be magnificent!

 

“Be the change that you wish to see in the world.” ― Mahatma Gandhi

As ever,

 

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.