Author: Carolann

Dear Friends,

 

Tangents:

 

I finished reading a wonderful book last night, a memoir by Gully Wells entitled The House in France.  Gully’s mother is Dee Wells, and was caught up in the counter culture of the 1960s, immersing  herself within an intellectual  inner circle that included Isaiah Berlin, Iris Murdoch, Bertrand Russell, Martin Amis, Christopher Hitchens, Robert Kennedy among many others.  The story unfolds in London, Provence and New York.  She  married A.J. Ayer, the celebrated Oxford philosopher when Gully was only a toddler.  Gully writes of lovingly of her step-father Freddie, as A.J. is known:  “His old friend e.e. cummings once wrote him a birthday poem, which captured this charming duality in his nature rather nicely:

 

Considering the gravity of your language

And the levity of your nature

(or, at times, the levity of your language

and the gravity of your nature)

it is clear that keeping your balance

comes easier than it does to teetering us.

You walk on the tightropes as if they lay on the ground,

And always, bird eyed, notice more than we notice you notice; and the

observation follows always with the clarity

of a wire slicing cheese.

 

photos of the day

March 21, 2012

Performers dance during Navruz celebrations in the Tajik capital of Dushanbe. Navruz is a traditional Central Asian holiday marking the first day of spring and the beginning of a new year.

Nozim Kalandarov/Reuters

People watch a water fountain on the Swiss Federal square in front of the Swiss Federal Palace (Bundeshaus) in Bern.

Michael Buholzer/Reuters

 

Market Closures for March 21, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13124.62	-45.57
		-0.35%
S&P 500	1402.89	-2.63
		-0.19%
NASDAQ	3075.32	+1.17
		+0.04%
TSX	12436.49	+5.79
		+0.05%

International Markets

Market Index	Close	Change
NIKKEI	10086.49	-55.50
		-0.55%
HANG SENG	20856.63	-31.61
		-0.15%
SENSEX	17601.71	+285.53
		+1.65%
FTSE 100	5891.95	+0.54
		+0.01%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.239	2.281
CND. 30 Year Bond	2.765	2.806
U.S. 10 Year Bond	2.2942	2.3591
U.S. 30 Year Bond	3.3811	3.4454

Currencies

BOC Close	Today	Previous
Canadian $	1.00792	1.00853
US $	0.99214	0.99154
Euro Rate 1 Euro=		Inverse
Canadian $	1.31081	0.76289
US $	1.32119	0.75689

Commodities

Gold	Close	Previous
London Gold Fix	1649.70	1650.70
Oil	Close	Previous
WTI Crude Future	106.91	105.61

Market Commentary:

Canada

By Joseph Ciolli

March 21 (Bloomberg) — Canadian stocks rose for the first time in three days, led by industrial shares, after Bombardier Inc. signed an agreement with China-based Commercial Aircraft Corp. that will help cut costs and boost sales.

Bombardier, a maker of trains and airplanes, increased 3.2 percent. Canadian National Railway Co., the country’s largest railroad, rose 1.8 percent on plans to build a line in Quebec.

Calfrac Well Services Ltd., which provides hydraulic fracturing in Canada and the U.S., fell 5.9 percent after Baker Hughes Inc. said a shift away from gas rigs may hurt its earnings.

The Standard & Poor’s/TSX Composite Index rose 5.79 points, or 0.1 percent, to 12,436.49 in Toronto.

March 21 (Bloomberg) — Canadian stocks were little changed as financial shares slipped after a decline in sales of previously owned U.S. homes and gold producers rose with futures for the metal.

Bank of Nova Scotia, Canada’s third-biggest lender by assets, fell 1 percent. Yamana Gold Inc., Canada’s third-largest producer by market value, gained 0.8 percent as  futures advanced on speculation that demand will rebound in India.

Calfrac Well Services Ltd., which provides hydraulic fracturing in Canada and the U.S., fell 5.4 percent after Baker Hughes Inc. said a shift away from gas rigs may hurt its earnings.

The Standard & Poor’s/TSX Composite Index rose 0.77 point, or less than 0.1 percent, to 12,431.47 at 12:43 p.m. in Toronto.

“For the past couple of weeks this market has been predominantly driven off the commodity space, but you’re not seeing a lot of movement on it today,” Gareth Watson, vice president of investment management and research at Richardson GMP Ltd. in Toronto, said in a telephone interview. The firm oversees about C$16 billion ($16 billion). “It’s a reflection of the fact that there really hasn’t been a great deal of news or development overnight from an economic standpoint.”

Canadian financial companies, which make up 30 percent of the country’s stocks by market value, fell after the National Association of Realtors said in a report that purchases of previously owned U.S. homes dropped 0.9 percent to a 4.59 million annual rate from a revised 4.63 million pace in January that was faster than previously estimated.

Bank of Nova Scotia decreased 1 percent to C$55.20. The U.S. accounted for 19 percent of the company’s deposits last year, according to data compiled by Bloomberg. Industrial Alliance Insurance & Financial Services Inc. dropped 2 percent to C$29.95.

Gold stocks in the index rose on speculation that demand will increase after jewelry shops end a five-day shutdown tomorrow in India. Futures for April delivery gained 0.3 percent to $1,651.90 an ounce at 12:06 p.m. in New York.

Yamana rose 0.8 percent to C$15.60. Centerra Gold Inc., which mines in Kyrgyzstan and Mongolia, increased 5.4 percent to C$16.34.

Calfrac declined 5.4 percent to C$29.33 after Baker Hughes, the world’s third-largest oilfield services provider, said it expects operating profit before tax for the first quarter to fall as producers shift drilling from natural gas to crude.

Agrium Inc. gained 1 percent to C$88.43 after Goldman Sachs Group Inc. said it remains bullish on the sector given the positive outlook for corn prices. The company has partnered with Glencore International Plc in the largest publicly traded commodity supplier’s attempt to buy Viterra Inc.

US

By Rita Nazareth

March 21 (Bloomberg) — U.S. stocks fell, sending the Standard & Poor’s 500 Index down a second day, on concern the best first-quarter since 1998 has outpaced economic prospects and as Baker Hughes Inc. drove a selloff in energy shares.

Baker Hughes, the world’s third-largest oilfield-services provider, tumbled 5.8 percent after saying that a shift away from gas rigs will hurt earnings. Morgan Stanley and Fifth Third Bancorp dropped at least 1.7 percent to pace losses in financial companies. Hewlett-Packard Co. slumped 2.2 percent for the biggest decline in the Dow Jones Industrial Average.

The S&P 500 slipped 0.2 percent to 1,402.89 at 4 p.m. New York time. The Dow retreated 45.57 points, or 0.4 percent, to 13,124.62. About 6.1 billion shares changed hands on U.S. exchanges, or 7.9 percent below the three-month average.

“People won’t play real hard at these levels,” said Jeffrey Saut, chief investment strategist at Raymond James & Associates in St. Petersburg, Florida, which oversees more than $300 billion. “I don’t think you should get bearish. Yet the market’s energy seems to be used up after the strong rally.”

The S&P 500 has rallied 12 percent this year amid better- than-estimated economic and corporate data. More than $3.6 trillion was restored to U.S. equity values since last year’s low for the benchmark gauge in October. The rally drove the index to about 14.6 times reported earnings this week, the highest valuation level since July.

Data today showed purchases of previously owned U.S. houses dropped 0.9 percent to a 4.59 million annual rate from a revised 4.63 million pace in January that was faster than previously estimated. The median forecast in a Bloomberg News survey called for a rise to 4.61 million.

“The housing situation is not a quick turnaround,” Hank Smith, chief investment officer at Haverford Trust Co. in Radnor, Pennsylvania, said in a telephone interview. His firm manages about $6.5 billion. “In addition, the stock market had an almost one-way ride. It’s due for a pause.”

Energy shares in the S&P 500 slumped 1 percent for the biggest decline among 10 groups.

Baker Hughes tumbled 5.8 percent to $45.04. North American first-quarter profit margin will drop to as low as 13.2 percent from 18.7 percent because of lower prices, higher costs and supply shortages as U.S. operators shift rig locations, the company said. Companies are drilling for oil because it’s worth about eight times more on an energy-equivalent basis than gas on U.S. markets, according to data compiled by Bloomberg.

A measure of financial shares in the S&P 500 lost 0.4 percent for the second-biggest decline among 10 industries.

Morgan Stanley fell 1.7 percent to $20.06. Fifth Third retreated 1.8 percent to $14.24.

Hewlett-Packard slid 2.2 percent to $23.46. The company will combine its personal-computer unit with the division that sells printers into a group led by Todd Bradley, who ran the PC business, to help cut expenses amid declining sales and profit.

“Deeper issues will likely take more than management changes,” Maynard Um, an analyst with UBS AG in New York, said in a note to investors.

Hartford Financial Services Group Inc. rose 1.4 percent to $22.02. Chief Executive Officer Liam McGee responded to billionaire John Paulson’s call for a breakup with plans to shut or sell parts of the 201-year-old insurer. Hartford will stop selling individual annuities and seek buyers for its individual life, Woodbury Financial Services and retirement-plan operations.

LinkedIn Corp. surged 6.5 percent to $97.78. The biggest professional-networking website was raised to buy from neutral at Goldman Sachs Group Inc.

Netflix Inc. gained 4.4 percent to $120.10. The online and mail-order video-rental service said the mystery series “Hemlock Grove” will be available exclusively to its members for instant viewing early in 2013.

Stocks will probably begin a “steady upward trajectory” over the next few years because any declines in economic growth are already reflected in share prices, Goldman Sachs Group Inc. said. The MSCI World Index is trading at 13.2 times estimated earnings after falling 7.6 percent last year, data compiled by Bloomberg show.

“Given current valuations, we think it’s time to say a ‘long goodbye’ to bonds, and embrace the ‘long good buy’ for equities as we expect them to embark on an upward trend over the next few years,” Peter Oppenheimer, chief global equity strategist at Goldman Sachs in London, wrote in a report today.

The prospects for returns in equities versus bonds “are as good as they have been in a generation,” he wrote.

 

Have a wonderful evening everyone.

 

Be magnificent!

I am myself.

The other is simply something else.

I am what I am.

If I am a demon, very well then I am a demon.

That is all.

Swami Prajnanpad, 1891-1974

As ever,

 

Carolann

 

I don’t like that man.  I must

get to know him.

-Abraham Lincoln, 1809-1865

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: First Day of Spring!

And while we deal with hail, wet snow and cold, my girlfriend in Toronto called me today to say they are expecting 26 degrees tomorrow.

 

Sweet spring, full of sweet days and roses,

A box where sweets compacted lie;

My music shows ye have your closes,

And all must die.

-George Herbert, Virtue, 1633

 

photos of the day

March 20, 2012

On the first day of spring in Germany a bumble bee collects pollen from a blooming crocus in the sun at a traffic island in Gelsenkirchen, Germany.

Martin Meissner/AP

In this picture taken with a fish-eye lens, people stand around the “luminous lace” light sculpture by designers Loop.pH in the Stone Hall during a press preview at what used to be the official residence of the late Princess Diana, Kensington Palace in London.

Matt Dunham/AP

Market Closures for March 20, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13170.19	-68.94
		-0.52%
S&P 500	1405.52	-4.23
		-0.30%
NASDAQ	3074.15	-4.17
		-0.14%
TSX	12430.70	-49.00
		-0.39%

International Markets

Market Index	Close	Change
NIKKEI	10141.99	+12.16
		+0.12%
HANG SENG	20888.24	-227.05
		-1.08%
SENSEX	17316.18	+42.81
		+0.25%
FTSE 100	5891.41	-69.70
		-1.17%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.281	2.290
CND. 30 Year Bond	2.806	2.818
U.S. 10 Year Bond	2.3591	2.3772
U.S. 30 Year Bond	3.4454	3.4779

Currencies

BOC Close	Today	Previous
Canadian $	1.00853	1.01336
US $	0.99154	0.98682
Euro Rate 1 Euro=		Inverse
Canadian $	1.31122	0.76265
US $	1.32241	0.75619

Commodities

Gold	Close	Previous
London Gold Fix	1650.70	1663.90
Oil	Close	Previous
WTI Crude Future	105.61	107.88

Market Commentary:

Canada

By Joseph Ciolli

March 20 (Bloomberg) — Canadian stocks fell for a second day as energy shares dropped with oil prices on forecasts that the U.S. will report crude stockpiles rose and growing concern that demand will slow in China.

Suncor Energy Inc., Canada’s largest oil and gas producer, decreased 1.2 percent. Teck Resources Ltd., the country’s largest base-metals and coal producer, retreated 2.3 percent as copper declined the most in two weeks. Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, rose 3.9 percent after Canpotex Ltd., the North American potash cartel, signed a contract to supply the fertilizer to Sinofert Holdings Ltd. in China at the same price as the second half of last year.

The S&P/TSX Composite Index decreased 49 points, or 0.4 percent, to 12,430.70 in Toronto.

“The actions we’ve seen in China recently suggest that they might curb some demand” for oil, Daniel L. Bain, chief investment officer of Thornmark Asset Management Inc. in Toronto, said in a telephone interview. Bain oversees about

C$400 million ($402 million). “There has also been a conflict risk premium built into the price, and people might be seeing that as a bit excessive, especially if we see any sort of diplomatic resolution in the Middle East.”

The S&P/TSX slipped 0.1 percent last week as economic data from the U.S. helped commodity shares pare losses after China reported a smaller gain in exports than economists had forecast.

Energy and raw-materials companies make up 46 percent of Canadian stocks by market value, according to Bloomberg data.

Energy stocks in the S&P/TSX fell today as oil dropped before a report that will show crude stockpiles increased to a six-month high last week, according to the median estimate in a Bloomberg News survey. China, the world’s second-largest oil consuming country, increased motor fuel prices for the second time in less than six weeks. Gu Xianghua, deputy secretary general of China Association of Automobile Manufacturers, said the country’s vehicle sales may miss industry targets.

Suncor Energy fell 1.2 percent to C$33.05. Canadian Natural Resources Ltd., the country’s second-largest energy producer, slipped 1.9 percent to C$34.84. Nexen Inc., which develops and produces oil in Yemen, dropped 2 percent to C$19.05.

An index of diversified metal stocks in the S&P/TSX decreased after copper fell as swelling inventories and a slowing economy signaled slackening demand in China.

Lundin Mining Corp., which explores for and produces base metals in Europe, fell 3.5 percent to C$4.68. Teck Resources decreased 2.3 percent to C$35.74.

Industrial stocks in the S&P/TSX dropped, fueled by rail companies, as falling commodity prices and growing stockpiles reduced demand for their services. Concern is also growing over foreign demand after China’s government cut its target for annual economic growth this month to 7.5 percent from 8 percent.

Canadian National Railway Co., the country’s largest railroad, decreased 1.9 percent to C$77.46. Canadian Pacific Railway Ltd., the nation’s second-largest railroad, dropped 0.9 percent to C$76.92. Bombardier Inc., which makes trains and airplanes, fell 0.3 percent to C$4.05.

Viterra Inc., Canada’s biggest grain handler, fell 0.4 percent to C$15.91 after Glencore International Plc agreed to buy the company for C$6.1 billion to add grain assets in Canada and Australia. The C$16.25 a share purchase price is a 48 percent premium to Viterra’s closing price on March 8, the day before the company said it had received expressions of interest.

“The massive amount of cash on corporate balance sheets along with massive equity and debt issuances will lead to more M&A activity,” Bain said. “We’re already starting to see some action.”

Agrium Inc., a Calgary-based fertilizer producer that is a partner in the deal with Glencore, advanced 2.2 percent to C$87.60.

Potash Corp. jumped 3.9 percent to C$46.40 after Canpotex agreed to supply 500,000 metric tons of potash to Sinofert in the second quarter.

US

By Rita Nazareth

March 20 (Bloomberg) — U.S. stocks declined, snapping a three-day advance for the Standard & Poor’s 500 Index, as commodities fell on concern about a Chinese economic slowdown.

Industrial and commodity shares slumped as China raised fuel prices by the most in two years and BHP Billiton Ltd. said the nation’s steel production is slowing. Caterpillar Inc. and Alcoa Inc. dropped more than 1.5 percent. Adobe Systems Inc.

sank 3.9 percent as its profit forecast missed some estimates.

Bank of America Corp. jumped 2.9 percent. Tiffany & Co. surged

6.7 percent after forecasting profit that beat projections.

The S&P 500 retreated 0.3 percent to 1,405.52 at 4 p.m. New York time, after the benchmark measure yesterday advanced to the highest level since May 2008. The Dow Jones Industrial Average declined 68.94 points, or 0.5 percent, to 13,170.19 today. The Russell 2000 Index of small companies slumped 1 percent to 829.24. About 6.2 billion shares changed hands on U.S.

exchanges, or 6.5 percent below the three-month average.

“A Chinese slowdown is inevitable,” said Peter Jankovskis, who helps manage about $2.9 billion at Oakbrook Investments in Lisle, Illinois. “It’s possible that will take some of the heat out of commodities. Yet China is not the only growth story out there. China will continue to be an important player, but the U.S. economy seems to have found its legs.”

Equities fell as China is raising fuel prices for the second time in less than six weeks. The nation’s vehicle sales may miss industry forecasts this year as economic growth slows, an official from the China Association of Automobile Manufacturers said. BHP Billiton, the world’s biggest mining company, said China’s steel production is slowing. In the U.S., housing starts hovered in February near a three-year high.

The S&P 500 has rallied 12 percent this year amid better than estimated economic and corporate data. More than $3.6 trillion was restored to U.S. equity values since last year’s low for the benchmark gauge in October. The rally drove the index to about 14.6 times reported earnings yesterday, the highest valuation level since July.

Companies most dependent on economic growth had the biggest declines in the S&P 500. The Dow Jones Transportation Average retreated 1.3 percent. A gauge of homebuilders in S&P indexes dropped 1 percent as 10 of its 11 stocks fell.

Measures of industrial and commodity shares in the S&P 500 dropped more than 0.5 percent. Caterpillar, the world’s biggest maker of construction and mining-equipment, slumped 2.6 percent to $110.76. Alcoa Inc., the largest U.S. aluminum producer, slid

1.5 percent to $10.44. Peabody Energy Corp., the biggest U.S.

coal producer, declined 5.4 percent to $31.64.

Adobe sank 3.9 percent to $33.16. Excluding some costs, profit will be 57 cents to 61 cents a share in the second quarter, Adobe said. The midpoint of that range — 59 cents — missed the 60 cents predicted by analysts, according to data compiled by Bloomberg.

Walt Disney Co. dropped 0.5 percent to $43.24. The world’s largest entertainment company said the box-office disappointment “John Carter” will post a loss of about $200 million, possibly the biggest ever for a single film.

A rally in financial companies helped the S&P 500 trim a decline of as much as 0.9 percent. The KBW Bank Index added 0.4 percent. Bank of America rallied 2.9 percent, the most in the Dow, to $9.81. Morgan Stanley gained 1.7 percent to $20.41.

Jefferies Group Inc. climbed 2.3 percent to $19.49. The investment bank that surged by almost half during the fiscal first quarter reported a profit decline that was smaller than analysts estimated as net revenue climbed to a record.

Tiffany surged 6.7 percent to $73.27. The company is benefiting from stock-market gains that have prompted luxury consumers to resume jewelry purchases, a turnabout from January, when the retailer said weak spending from U.S. customers had slowed holiday sales.

Apple Inc. added 0.8 percent to a record $605.96. The Cupertino, California-based technology provider yesterday disclosed plans to pay a dividend and buy back $10 billion of stock.

Barton Biggs, the hedge-fund manager who increased bets on equities before the S&P 500 rallied this year, is getting more bullish.

“I’ve been gradually increasing and I’m up to 90 percent now,” said Biggs, referring to the proportion of his fund that benefits from higher share prices. He spoke in a radio interview today on “Bloomberg Surveillance” with Tom Keene. “There is an awful lot of money that is out of stocks and in very low- yielding fixed-income instruments. I think the odds are that money is going to migrate back.”

Biggs, the founder of the Traxis Partners LP, said last month that his net-long position, a gauge of bullish versus bearish investments, in stocks is about 75 percent, up from 65 percent in January.

Treasuries rebounded today following the longest drop since 2006, with yields on 10-year notes falling to 2.36 percent. U.S.

stocks posted the best returns when 10-year Treasury yields rose to close to 4 percent, according to a study by S&P that tracked market performance since 1953.

The S&P 500 advanced 1.7 percent a month on average during periods when 10-year yields climbed to a range of 3 percent to 4 percent, according to data compiled by New York-based S&P.

That’s the best performance among six categories of rising yields studied by the firm. Stocks began to fall when yields exceeded 6 percent, the study found.

While rising yields tend to boost borrowing costs for companies and act as “a depressant in intrinsic value calculations,” they can also suggest a strengthening economy and prompt investors to switch to equities, according to Sam Stovall, S&P’s chief equity strategist.

“The ‘sweet spot’ for equity prices appears to be a rising rate environment between 3 percent and 4 percent, as a growing economy reduces unemployment while increasing corporate earnings, yet does not trigger growth-slowing efforts by the central bank,” Stovall wrote in a report yesterday.

 

Have a wonderful evening everyone.

 

Be magnificent!

All the responsibility of good and evil is on you.  This is the great hope.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

We are now at a point in time when the ability to receive, utilize,

store, transform and transmit data – the lowest cognitive form – has

expanded literally beyond comprehension.  Understanding and

wisdom are largely forgotten as we struggle under an avalanche

of data and information.

-Dee Hock, 1929-

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

Senior Vice-President &

Senior Investment Advisor

 

Dear Friends,

 

Tangents:

 

Everything is gestation and then bringing forth.  To let each

impression and

each germ of a feeling come to completion, wholly in itself,

in the dark, in

the inexpressible, the unconscious, beyond the reach of one’s

own intelligence, and

await with deep humility and patience the birth-hour of a new

clarity: that

alone is living the artist’s life: in understanding as in creating.

 

There is here no measuring with time, no year matters, and ten

years are

nothing.  Being an artist means not reckoning and counting,

but ripening like

the tree which does not force its sap and stands confident in the

storms of

spring without the fear that after them may come no summer.

It does come.  But

it comes only to the patient who are there as though eternity lay

before them,

so unconcernedly still and wide.

-Rainer Maria Rilke

photos of the day

March 19, 2012

Cherry blossoms begin to bloom at the Martin Luther King Jr. National Memorial on the Tidal Basin in Washington.

Charles Dharapak/AP

A mother coaxes her new born lamb to stand at the Riverslea Farm in Epping, N.H. during record warm temperatures on the last day of winter.

Jim Cole/AP

 

Market Closures for March 19, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13239.13	+6.51
		+0.5%
S&P 500	1409.75	+5.58
		+0.40%
NASDAQ	3078.32	+23.06
		+0.75%
TSX	12479.70	-17.26
		-0.14%

International Markets

Market Index	Close	Change
NIKKEI	10141.99	+12.16
		+0.12%
HANG SENG	21115.29	-202.56
		-0.95%
SENSEX	17273.37	-192.83
		-1.10%
FTSE 100	5961.11	-4.47
		-0.07%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.290	2.241
CND. 30 Year Bond	2.818	2.768
U.S. 10 Year Bond	2.3772	2.2922
U.S. 30 Year Bond	3.4779	3.4053

Currencies

BOC Close	Today	Previous
Canadian $	1.01336	1.00847
US $	0.98682	0.99160
Euro Rate 1 Euro=		Inverse
Canadian $	1.30645	0.76543
US $	1.32390	0.75534

Commodities

Gold	Close	Previous
London Gold Fix	1663.90	1658.50
Oil	Close	Previous
WTI Crude Future	107.88	107.22

Market Commentary:

Canada

By Joseph Ciolli

March 19 (Bloomberg) — Canadian stocks swung between gains and losses as energy companies rose on speculation that U.S. economic growth will accelerate and gold producers fell.

Suncor Energy Inc., Canada’s largest oil and gas producer, gained 1.7 percent after a report that U.S. homebuilder confidence held at the highest level since June 2007. Canadian Natural Resources Ltd., the country’s second-largest energy company by market value, advanced 1.3 percent. Potash Corp. of Saskatchewan Inc. declined 1.5 percent as wheat futures fell.

The S&P/TSX Composite Index increased 1.85 points, or less than 0.1 percent, to 12,498.81 at 3:11 p.m. in Toronto.

“We’ve been moving higher over the last few months, but it makes sense for the market to pause from time to time,” Tony Demarin, chief investment officer at BCV Asset Management in Winnipeg, Manitoba, said in a telephone interview. The firm oversees C$335 million ($333 million). “In terms of oil stocks, there’s still a bit of a disconnect between their prices and the lofty price for crude. They still have more room to climb to catch up, and you’re seeing that a bit today.”

The index slipped 0.1 percent last week as economic data from the U.S. helped commodity shares pare losses after China reported a smaller gain in exports than economists had forecast.

Energy and raw-materials companies make up 46 percent of Canadian stocks by market value, according to Bloomberg data.

Canadian energy companies increased for a third straight day as oil futures in New York gained as much as 1 percent. The National Association of Home Builders/Wells Fargo index was unchanged in March and sales expectations climbed.

Suncor Energy increased 1.7 percent to C$33.50. Canadian Natural Resources rose 1.3 percent to C$35.49. The Canadian energy shares with the highest market capitalizations are valued at 20 percent below a five-year average for earnings before interest, taxes, depreciation and amortization, UBS AG analyst George Toriola wrote in a March 16 note.

Materials stocks in the S&P/TSX fell after a two-day rebound, led by gold companies, even as gold futures rose after a drop in the dollar boosted the appeal of the metal as an alternative asset.

China Gold International Resources Corp. fell 7 percent to C$4.42. Premier Gold Mines Ltd., which explores in Ontario and Nevada, decreased 3.9 percent to C$4.73.

Nevsun Resources Ltd., which mines gold in the African country of Eritrea, gained 6.1 percent to C$3.50 after saying it may buy back as much as 2 percent of its shares.

Potash Corp., the world’s biggest fertilizer producer, slipped 1.5 percent to C$44.74 as wheat headed for its biggest drop in a week in Chicago on speculation that rain will boost production in North America and China.

Cardiome Pharma Corp., which develops heart drugs, plunged 56 percent to 84 Canadian cents after Merck & Co. decided to discontinue further advancement of the oral formulation of an atrial fibrillation drug it was developing with the company.

US

By Rita Nazareth

March 19 (Bloomberg) — The Standard & Poor’s 500 Index advanced to the highest level since May 2008 as Apple Inc. plans to pay a dividend and buy back $10 billion of its stock.

Apple climbed 2.7 percent to a record $601.10. Citigroup Inc. advanced 1.3 percent after selling its 2.71 percent stake in Shanghai Pudong Development Bank. U.S. Steel Corp. rallied 6.4 percent to pace gains in commodity shares. United Parcel Service Inc. increased 3.4 percent after agreeing to buy TNT Express NV. Bank of America Corp. retreated 2.8 percent, reversing an earlier advance that drove the stock above $10.

The S&P 500 rose 0.4 percent to 1,409.75 at 4 p.m. New York time, trading 9.9 percent below its October 2007 record of 1,565.15. The Dow Jones Industrial Average added 6.51 points, or 0.1 percent, to 13,239.13. The Nasdaq Composite Index gained 0.8 percent to 3,078.32, the highest level since November 2000. The S&P Smallcap 600 Index increased 0.9 percent to an all-time high of 465.97. About 6.6 billion shares changed hands on U.S. exchanges, almost in line with its three-month average.

“There’s plenty of room for dividends to increase,” said Paul Zemsky, the New York-based head of asset allocation for ING Investment Management. His firm oversees $160 billion. “Paying dividends is a sign of health in the companies and the economy. That plays well in terms of investors’ confidence.”

The S&P 500 has rallied 12 percent this year and is on pace for the best first quarter since 1998 amid better-than-estimated economic and corporate reports. It trades at about 14.6 times reported earnings, the highest valuation level since July while still below the average since 1954 of 16.4 times earnings.

Today’s rally amid Apple’s announcement added to last week’s optimism over dividend increases by banks including JPMorgan Chase & Co. The index rose 2.4 percent between March 9 and March 16 for the biggest weekly gain this year.

“It’s all about confidence,” said James Paulsen, who helps oversee about $333 billion as chief investment strategist at Minneapolis-based Wells Capital Management. “You’re seeing more evidence of corporate confidence rising to the extent that companies are starting to act on that. The environment for the next few years still looks very good for equity investors.”

Apple gained 2.7 percent to $601.10. Investors will receive a quarterly dividend of $2.65 a share starting in the period beginning July 1, Cupertino, California-based Apple said in a statement. The buybacks will begin in the fiscal year starting Sept. 30 and will take place over three years, the company said.

The company’s cash pile has swelled amid surging demand for its products. Investors had urged Apple to return some of the balance in the form a dividend.

“We are extremely confident in our future and see tremendous opportunities ahead,” Apple Chief Financial Officer Peter Oppenheimer said in the release. He said the company plans to pay out about $45 billion over three years.

The KBW Bank Index added 0.5 percent as 20 of its 24 stocks advanced. Bank of America fell 2.8 percent to $9.53, snapping a four-day rally.

Citigroup added 1.3 percent to $37.17. The third-largest U.S. bank sold its 2.71 percent stake in Shanghai Pudong Development Bank to institutional investors, generating after- tax proceeds of about $349 million.

Morgan Stanley rallied 2.7 percent to $20.06. The owner of the world’s largest brokerage is planning its first corporate bond sale since October after the cost to protect its bonds from default dropped by almost 50 percent in the past four months.

U.S. Steel had the biggest advance in the S&P 500, gaining 6.4 percent to $31.64. The country’s largest producer of the metal by volume should benefit from a recovery in steel prices, UBS AG said in a note.

UPS added 3.4 percent to $81.11, the highest level since July 2006. The company raised its offer for TNT Express NV by 5.6 percent to 5.16 billion euros ($6.8 billion) to secure the biggest deal in the U.S. company’s 105-year history.

E*Trade Financial Corp. advanced 1.6 percent to $11.22. The online brokerage was raised to the equivalent of buy at Wells Fargo & Co.

Sprint Nextel Corp. slumped 4.5 percent, the most in the S&P 500, to $2.76. Sanford C. Bernstein & Co. downgraded the company amid concern it won’t sell enough iPhones to afford its “punishing” commitment with Apple Inc.

Medco Health Solutions Inc. lost 1.9 percent to $68.93.

Express Scripts Inc.’s bid to acquire the company may be delayed by a lawsuit being considered by five states. Express Scripts fell 2.1 percent to $53.22.

A measure of homebuilders in S&P indexes dropped 0.9 percent. The March reading of 28 in the National Association of Home Builders/Wells Fargo index of builder confidence was less than projected and followed a February figure that was lower than initially reported, figures from the Washington-based group showed today. The median forecast of economists surveyed by Bloomberg News called for a rise to 30. Readings below 50 mean more respondents said conditions were poor.

KB Home sank 6.8 percent to $11.89. PulteGroup Inc. retreated 1.4 percent to $9.16.

Daily price changes in the S&P 500 are decreasing the most in eight decades, shrinking to the smallest since 1995 when investors abandoned stocks just before the biggest rally ever.

The benchmark gauge for U.S. equities has gained or lost an average 0.46 percent a day this year, compared with 1.04 percent in 2011, the biggest reduction since 1934, during the Great Depression, according to data compiled by Bloomberg. Swings are diminishing after valuations fell 40 percent and correlation among shares weakened the most in at least three decades.

At the same time, trading on the New York Stock Exchange has slumped to the lowest rate in 13 years, spurring concern about the biggest first-quarter rally since 1998. Bulls say the decline in trading and daily swings signal fear is dissipating after one of the most volatile years on record. Bears say falling volume is a warning gains will reverse should economic reports and earnings fail to match expectations.

“Low volatility is good in that it will bring investors back,” Tim Hoyle, the director of research at Radnor, Pennsylvania-based Haverford Trust Co., which manages $6 billion, said in a March 13 phone interview. “Even though bullish sentiment is high, people are still fearful. I see it in my business every day, they couldn’t stomach the volatility. This will restore some sense.”

 

Have a wonderful evening everyone.

 

Be magnificent!

The idea of a duty to understand violence engenders for me

a great vitality and passion for knowledge.

But to transcend this violence, I need not repress it, nor deny it, nor say to myself:

It has become a part of me, I can do nothing about it; or, I wish to reject it.

I must observe it, study it, enter into it intimately,

and for that purpose I need neither condemn it nor justify it.

And yet, it is this that we do.

I would ask you, then, to suspend for an instant your judgments on the subject.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

Each friend represents a world in us, a world

possibly not born until they arrive, and it is

only by this meeting that a new

world is born.

-Anais Nin, 1903-77

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: St. Patrick’s Day this weekend –

You’ve got to do your own growing, no matter how tall your grandfather was.  ~ Irish Proverb.

It being St. Patrick’s Day weekend and reminiscing on all the great pleasures the Irish had given the world (e.g. The Book of Kells)
I had an urge to find James Joyce’s Portrait of the Artist as a Young Man in the stacks of books  in my library at home and it was a magical moment.  I have probably not looked at it in decades.  When I opened it, I found that I had written in the perfect handwriting I had back then, my name and the day I acquired it – September 15, 1973.  It would have been my first year at Marianopolis College in Montreal and part of the curriculum for my English Literature class.   Even though I was a science major, literature will always be my deepest love and we were allowed an elective, so naturally literature is what I chose.  I remember the Professor as if it were yesterday – he was the most enigmatic, enlightened, inspirational professor I have ever had (except maybe my biochemistry Professor at University a few years later).  I don’t really remember, but I must have had to do a book report on it because it is scribbled with my handwriting all over the place, for instance:

Page 15: “He turned to the flyleaf of the geography and read what he had written there: himself, his name and where he was.

Stephen Dedalus

Class of Elements

Clongowes Wood College

Sallins

County Kildare

Ireland

Europe

The World

The Universe”

I had written in the margins “attempt to orient himself.”

On another page:

“His mind wearied of its search for the essence of beauty amid the spectral words of Aristotle or Aquinas turned often for its pleasure to the dainty songs of the Elizabethans.  His mind, in the vesture of a doubting monk, stood often in shadow under the windows of that age, to hear the grave and mocking music of the lutenists  or the frank laughter of waist-coasters until a laugh too low, a phrase, tarnished by time, of chambering and false honour stung his monkish pride and drove him on from hid looking-place.”

I had written in the margins: “Real world and Elizabeth, virgin queen.”

Lots more too.

photos of the day

March 16, 2012

People create shadows on a metal wall on a sunny spring day in Berlin.

Thomas Peter/Reuters

A Trabant convertible, a vintage East German car, drives past the Reichstag, the seat of Germany’s lower house of parliament, on a sunny spring day in Berlin.

Thomas Peter/Reuters

Market Closures for March 16, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13232.62	-20.14
		-0.15%
S&P 500	1404.17	+1.57
		+0.11%
NASDAQ	3055.26	-1.11
		-0.04%
TSX	12496.96	+41.14
		+0.33%

International Markets

Market Index	Close	Change
NIKKEI	10129.83	+6.55
		+0.06%
HANG SENG	21317.85	-35.68
		-0.17%
SENSEX	17466.20	-209.65
		-1.19%
FTSE 100	5965.58	24.86
		+0.42%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.241	2.203
CND. 30 Year Bond	2.768	2.734
U.S. 10 Year Bond	2.2922	2.2759
U.S. 30 Year Bond	3.4053	3.4078

Currencies

BOC Close	Today	Previous
Canadian $	1.00847	1.00822
US $	0.99160	0.99185
Euro Rate 1 Euro=		Inverse
Canadian $	1.30643	0.76544
US $	1.31750	0.75902

Commodities

Gold	Close	Previous
London Gold Fix	1658.50	1657.00
Oil	Close	Previous
WTI Crude Future	107.22	105.41

Market Commentary:

Canada

By Joseph Ciolli

March 16 (Bloomberg) — Canadian stocks rose for a second day, paring a weekly decline in the benchmark equity index, as economic data from the U.S. drove commodity shares higher.

Advantage Oil & Gas Ltd., which operates in western Canada, advanced 6.7 percent, the biggest gain among energy producers.

Teck Resources Ltd., Canada’s biggest base-metals and coal producer, gained 3.4 percent. Astral Media Inc., the owner of the Movie Network cable channel, surged 34 percent after BCE Inc. agreed to acquire the company for C$3 billion ($3 billion).

Extorre Gold Mines Ltd. fell 3.9 percent as producers of the precious metal retreated.

The S&P/TSX Composite Index increased 41.14 points, or 0.3 percent, to 12,496.96 in Toronto, limiting its weekly decline to

0.1 percent.

“There’s been positive economic news coming from the U.S., and we’re following in the wake,” Pat McHugh, senior managing director and Canadian equity strategist at Manulife Financial Corp.’s asset-management unit, said in a telephone interview.

The unit oversees about $217 billion. “Oil is up, which certainly helps. Our banks have had good results. And Treasury yields coming up have helped insurance companies have a very nice week.”

The index was down 0.4 percent this week through yesterday, as commodity shares declined after China reported a smaller gain in exports than economists had forecast. Energy and raw- materials companies make up 45 percent of Canadian stocks by market value, according to Bloomberg data.

Canadian resources companies rebounded amid speculation that demand will climb in the U.S., which reported yesterday that jobless claims fell to a four-year low last week. The U.S.

Labor Department reported today that consumer prices climbed less than forecast last month, showing inflation remains controlled. The country is the biggest crude consumer in the world and the second-biggest user of copper.

Advantage Oil & Gas rose 6.7 percent to C$3.80 after releasing a year-end report on its drilling program and reserves. Teck Resources increased 3.4 percent to C$36.75.

Fertilizer companies rose after data from the Fertilizer Institute showed a decline in potash inventories in February.

Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, gained 6.6 percent to C$45.40. Agrium Inc., a fertilizer company and farm retailer, increased 3.2 percent to C$85.22.

Financial stocks in the S&P/TSX rose for a seventh straight day, led by insurers, after the Federal Reserve raised its assessment on the economy earlier this week and said that 15 of

19 U.S. banks would be able to maintain adequate levels of capital in a financial crisis.

Industrial Alliance Insurance & Financial Services Inc., a Quebec-based insurer, rose 2.2 percent to C$32.40. Bank of Nova Scotia, Canada’s third-biggest lender, gained 0.9 percent to C$55.86.

Astral Media rose 34 percent to C$48.55 after BCE, Canada’s biggest phone company, said it would buy the company to expand in Quebec’s French-speaking market.

Calgary-based Corus Entertainment Inc., the owner of the YTV cable television network, increased 7.5 percent to C$23.40.

Gold producers declined for the fourth time this week as futures fell after India, the biggest bullion buyer, raised its tax on imports of precious metals for a second time this year.

Goldcorp Inc., the second-largest producer by market value, retreated 1.1 percent to C$43.65. Extorre, which explores for the metal in Argentina, slipped 3.9 percent to C$6.54, the lowest price since Oct. 5.

US

By Rita Nazareth

March 16 (Bloomberg) — The Dow Jones Industrial Average snapped a seven-day gain after an increase in oil and consumer prices sparked inflation concern as the economy improves.

Energy shares had the biggest advance among 10 groups in the Standard & Poor’s 500 Index. Noble Corp. and Chesapeake Energy Corp. increased more than 2.5 percent. The Bloomberg U.S.

Airlines Index slumped 3 percent amid expectations about higher fuel prices. Bank of America Corp. jumped 6.1 percent, surging

23 percent in four days. Apple Inc. ended almost unchanged as the company started selling the new iPad.

The S&P 500 advanced 0.1 percent to 1,404.17 at 4 p.m. New York time, capping a fifth week of gains. The benchmark measure has risen 2.4 percent since March 9, the biggest weekly advance in 2012. The Dow dropped 20.14 points, or 0.2 percent, to 13,232.62, after rallying to the highest level since December 2007. About 8.1 billion shares changed hands on U.S. exchanges today, or 21 percent above the three-month average.

“The bugaboo in the background is oil prices,” said Madelynn Matlock, who helps oversee about $14.6 billion at Huntington Asset Advisors in Cincinnati. “I filled up my car yesterday and it hurts. Things are improving at a slow, but steady pace. If oil prices pop up, it will be different story.”

Equities were little changed as the cost of living rose in February by the most in 10 months, reflecting a jump in gasoline. Confidence among consumers unexpectedly fell in March, a sign rising fuel costs may be starting to weigh on economic prospects. Treasury Secretary Timothy F. Geithner said yesterday rising oil prices show “we still face a dangerous and uncertain world” and there’s no easy way to lower gasoline costs.

 

The S&P 500 is still on pace for the best first quarter since 1998, after rallying 12 percent, amid better-than- estimated economic and corporate reports. It trades at 14.5 times reported earnings, the highest valuation level since July while still below the average since 1954 of 16.4 times earnings.

“It’s a bit of acrophobia,” said John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York, citing potential investors’ fear after the S&P 500 rose to the highest level since 2008. His firm oversees $209 billion. “The market has just gone up pretty quickly. Meantime, slow and slightly improving has been the way to look at the economy.”

Energy shares gained, while airlines slumped as oil traded above $107 a barrel. Noble surged 4.8 percent to $41.25.

Chesapeake Energy added 2.5 percent to $25.06. Exxon Mobil Corp.

advanced 0.4 percent to $86.44. US Airways Group Inc. lost 5.7 percent to $7.15. United Continental Holdings Inc. declined 2.2 percent to $19.95.

Financial shares in the S&P 500 rose 0.3 percent as a group. The index surged 6.2 percent in four days following dividend increases by banks including JPMorgan Chase & Co. Bank of America jumped 6.1 percent, the most in the Dow, to $9.80.

Wells Fargo & Co. lost 0.5 percent to $33.89.

American International Group Inc. fell 0.2 percent to $28.03, after rising as much as 1.1 percent earlier today. The insurer’s repayment of $1.6 billion to the U.S. Treasury Department pushed the government’s portion of recouped financial-bailout money to 80 percent, said a Treasury official familiar with the matter.

Apple ended almost unchanged at $585.57, after briefly rising above $600 yesterday. The 9.7-inch iPad, unveiled on March 7, is the biggest upgrade yet to Apple’s tablet before Microsoft Corp. introduces new software for competing devices.

Generating demand with the model is important for Apple to fend off competition from devices using Google Inc.’s Android operating system and the $199 Kindle Fire from Amazon.com Inc.

that’s popular among cost-conscious buyers.

The S&P 500, which yesterday rose above 1,400 for the first time in almost four years amid better-than-estimated economic data, may extend its gain to 1,470, according to Credit Suisse Group AG’s Andrew Garthwaite. He lifted his forecast for the index at the end of 2012 from a previous projection of 1,400, citing increasing risks for bonds and momentum in global earnings.

“The prospects for economic growth are pretty good,”

Michelle Gibley, director of international research at San Francisco-based Charles Schwab Corp., said in a telephone interview. Her firm has $1.81 trillion in client assets. “Near term, you could see some volatility in stocks because the run has been so strong. Longer term, the outlook looks good.”

The benchmark measure has “healthy intermediate-term momentum” that helped it recover from a slump at the beginning of the month and may drive it higher, MKM Partners LP’s chief market technician said.

The market may be staging a “breakout” after matching its

2011 highs last week, MKM Partners’ Katie Stockton said, citing the momentum indicator known as Moving Average Convergence/Divergence. A second-straight weekly close above

1,370 today would confirm the trend and open the way to an increase to 1,440, Stockton said in a phone interview yesterday.

“I’m bullish on the market from an intermediate perspective based largely on momentum and this breakout that appears to be under way,” Stockton said. “The fact that the S&P 500 has managed to exceed resistance at the 2011 high tells us that breakout should overrule any negative set-up otherwise.”

 

Have a wonderful weekend everyone.

 

Be magnificent!

Live your own life.

That is to say, where you are, as you are, with what you are, and with who you are…

Accept the situation which you find yourself and try, at the same time, to adapt to it.

You cannot escape from it.

Swami Prajnanpad, 1891-1974

 

As ever,

 

Carolann

 

Try to be better than yourself.

-William Faulkner, 1897-1962

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

Senior Vice-President &

Senior Investment Advisor

 

Dear Friends,

 

Tangents:

March 15, 44 BC: Julius Caesar assassinated.

 

Men at some times are masters of their fates,  the fault, dear Brutus, is not in our stars.  But in ourselves, that we are underlings.  –William Shakespeare.

“…Not only had there been fearful portents in the night sky, but Julius Caesar’s spouse had dreamed of his death and – what does it take to make this guy listen?  – a soothsayer had warned:  ‘Beware the Ides of March.’  The great Roman general headed off to the Senate on March 15^th anyway, where he was promptly assassinated by conspirators who feared he wanted to become king.  Even Caesar’s best friend – ‘Et tu, Brute?’ – was in on it.  But the plot to prevent tyranny was for naught:  After a whole lot of bloodshed and a memorable affair between one rival for power, Antony, Egypt’s Cleopatra, Octavian – Caesar’s self-styled heir – became Augustus, and the Roman republic became an empire…” –John Ibbitson, G & M, March 15, 2012.

photos of the day

March 15, 2012

A woman poses for photos among some of the 10,000 clay flowers that form artist Fernando Casasempere’s ‘Out of Sync’ installation in the court at Somerset House in central London. Casasempere’s installation will be on show until April 27.

Andrew Winning/Reute

A woman wears a hat to the Cheltenham Festival horse racing meet in Gloucestershire, western England.

Stefan Wermuth/Reuters

 

Market Closures for March 15, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13252.76	+58.66
		+0.44%
S&P 500	1402.60	+8.32
		+0.60%
NASDAQ	3056.37	+15.64
		+0.51%
TSX	12455.82	+77.92
		+0.63%

International Markets

Market Index	Close	Change
NIKKEI	10123.28	+72.76
		+0.72%
HANG SENG	21353.53	+45.64
		+0.21%
SENSEX	17675.85	-243.45
		-1.36%
FTSE 100	5940.72	-4.71
		-0.08%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.203	2.154
CND. 30 Year Bond	2.734	2.704
U.S. 10 Year Bond	2.2759	2.2722
U.S. 30 Year Bond	3.4078	3.44122

Currencies

BOC Close	Today	Previous
Canadian $	1.00822	1.00688
US $	0.99185	0.99317
Euro Rate 1 Euro=		Inverse
Canadian $	1.29743	0.77076
US $	1.30809	0.76447

Commodities

Gold	Close	Previous
London Gold Fix	1657.00	1642.90
Oil	Close	Previous
WTI Crude Future	105.41	105.70

Market Commentary:

Canada

By Joseph Ciolli

March 15 (Bloomberg) — Canadian stocks rebounded from the biggest drop in a week as financial shares gained after U.S. economic data was better than forecast and Quebec said it plans to approve the takeover of the Toronto Stock Exchange’s owner.

TMX Group Inc. gained 3.1 percent after the province’s financial markets authority said it plans to approve the proposed C$3.73 billion ($3.76 billion) purchase by Maple Group Acquisition Inc., a group of pension funds and banks. Royal Bank of Canada, the nation’s biggest lender, advanced 0.8 percent.

China Gold International Resources Corp. increased 2.1 percent on speculation that low interest rates will spur investment in gold.

The S&P/TSX Composite Index increased 77.92 points, or 0.6 percent, to 12,455.82 in Toronto.

“The approval of the TMX deal is certainly a plus,” Stephen Gauthier, a money manager at Fin-XO Securities in Montreal, said in a telephone interview. The firm oversees about C$600 million. “Strength in the U.S. market, especially in financials, is also having a positive effect on the Canadian market today. It’s definitely helped the banks.”

The index has increased 1.3 percent since March 6, the day of its largest decline of the year, as stronger-than-forecast American jobs data and Greece’s debt restructuring helped offset concern over China’s lower growth target and Europe’s economic contraction. The U.S. accounted for 74 percent of Canada’s exports last year.

Canadian banks and insurers rose after the Federal Reserve Bank of New York said manufacturing in the region expanded in March at the fastest pace since June 2010 and the Labor Department said claims for jobless benefits fell last week, matching the lowest level in four years. The Federal Reserve Bank of Philadelphia’s general economic index increased to 12.5 in March from 10.2 last month, beating economists’ estimates.

Royal Bank of Canada rose 0.8 percent to C$58.18. Bank of Nova Scotia, Canada’s third-biggest lender, advanced 2.1 percent to $55.35.

TMX Group gained 3.1 percent to C$45.09. Maple said today it was in discussions to extend its offer for Toronto-based TMX beyond the planned April 30 completion date as it pursues regulatory approval from provincial authorities and Canada’s Competition Bureau.

Materials stocks in the S&P/TSX rebounded from a three-day decline, led by gold companies, as futures for the precious metal rallied on signs that investors are stepping up purchases as an alternative to a weaker dollar.

China Gold, which focuses on Asian gold development and exploration, increased 2.1 percent to C$4.32. Barrick Gold Corp., the world’s largest gold-mining company, rose 1.5 percent to C$43.54. Yamana Gold Inc., Canada’s third-largest company in the industry by market value, gained 1.8 percent to C$15.60.

US

By Stephen Kirkland and Rita Nazareth

March 15 (Bloomberg) — U.S. stocks rose, sending the Standard & Poor’s 500 Index above 1,400 for the first time since 2008, as reports on manufacturing and jobless claims bolstered optimism in the economy. Treasuries trimmed losses.

The S&P 500 climbed 0.6 percent to close at 1,402.6 at 4 p.m. in New York and the Dow Jones Industrial Average gained 58.66 points to 13,252.76, its highest close since December 2007. The 10-year Treasury yield added one basis point to 2.28 percent after gaining as much as eight basis points. Crude pared losses as an Obama official denied a report the U.S. and U.K. planned to release oil from strategic reserves.

Nine of 10 industries in the S&P 500 advanced as U.S. jobless claims matched the lowest level in four years and manufacturing in the New York region expanded at the fastest pace since June 2010. Other reports showed consumer confidence climbed to the highest level since 2008 and international demand for U.S. financial assets increased more than forecast.

“The stock market is not terribly cheap, but reasonably priced,” John Carey, who helps oversee about $220 billion at Pioneer Investments in Boston.

The S&P 500 is trading for about 14.5 times its companies reported earnings, the highest valuation since July while still below the five-decade average multiple of 16.4. Financials, commodity producers and industrial companies led gains among the 10 main industry groups in the S&P 500 today.

Bank of America Corp., JPMorgan Chase & Co. and General Electric Co. rose at least 1.9 percent to lead gains in the Dow.

Cisco Systems Inc. slipped 1.4 percent after the largest maker of equipment for computer networks agreed to buy NDS Group Ltd. in a deal valued at about $5 billion to add software used in next-generation video services.

Economic reports today showed the Bloomberg Consumer Comfort Index rose to the highest since 2008, reaching minus 33.7 from minus 36.7 in the week ended March 11. An economic index from the Philadelphia Fed showed manufacturing in eastern Pennsylvania, southern New Jersey and Delaware expanded at the fastest pace in 11 months as factory employment picked up.

The S&P 500 closed at its highest level since June 5, 2008.

On that date, the index climbed 2 percent to 1,404.05, led by a 7.8 percent rally in Lehman Brothers Holdings Inc. The New York- based securities firm had lost a third of its value in the previous month and filed for bankruptcy in September 2008. The S&P 500 went on to plunge 52 percent before bottoming in March 2009.

Oil slipped 0.3 percent to $105.11 a barrel today, the lowest settlement since March 6. Futures rebounded from a 1.6 percent drop after an Obama administration official said there has been no agreement with Britain on a release of oil. The official spoke on condition of anonymity. Reuters reported earlier that the two nations would cooperate in an effort to cut rising gasoline prices.

The Stoxx Europe 600 Index closed up 0.3 percent, erasing earlier losses and reaching the highest level since July. Hennes & Mauritz AB advanced 2.4 percent after Europe’s second-largest clothing retailer reported an unexpected gain in sales. Aixtron SE surged 15 percent as Deutsche Bank AG recommended the shares.

Pernod-Ricard SA slid 2.1 percent as Groupe Bruxelles Lambert SA sold a 499 million-euro ($651 million) stake.

Ten-year Treasury yields climbed for a seventh day, the longest stretch since 2006. The rate rose to as high as 2.35 percent, the highest since Oct. 28. The average yield on 1,277 government debt securities in Merrill Lynch’s Global Sovereign Broad Market Plus Index climbed to 1.743 percent yesterday from 1.647 percent on March 7. The yield was 2.274 percent a year ago.

While Treasury yields are rising, the 10-year rate is about 1.5 percentage points less than last year’s high of 3.77 percent reached on Feb. 9. The yield averaged 3.87 percent in the past decade.

International demand for U.S. financial assets rose more than forecast in January. Net buying of long-term equities, notes and bonds totaled $101 billion during the month, compared with net purchases of $19.1 billion in December, the Treasury Department said. Six economists surveyed by Bloomberg News had forecast net buying of $38.5 billion of long-term assets, according to the median estimate.

The pound fell versus 11 of 16 major peers and borrowing costs rose at a bond auction after Fitch Ratings said the U.K. risks losing its AAA rating.

The 10-year U.K. gilt yield climbed three basis points to 2.37 percent, while sterling depreciated 0.3 percent against the euro. The U.K. sold 2 billion pounds ($3.1 billion) of bonds maturing in December 2042 at an average yield of 3.431 percent, up from 3.287 percent at an auction of similar-maturity debt in December.

The Spanish 10-year bond yield rose one basis point to 5.18 percent as the government sold 3 billion euros of bonds, compared with a maximum target of 3.5 billion euros it set for the sale. The bid-to-cover ratio for notes maturing in April 2016 was 4.13, compared with 2.21 when the notes were sold in January.

The 10-year French bond declined for the second day, with the yield rising four basis points to 2.97 percent, as the debt office auctioned sold 8.46 billion euros of notes, at the top end of the 8.5 billion euros targeted.

The euro strengthened versus eight of 16 major peers, climbing 0.4 percent to $1.3087 to halt a two-day slide versus the dollar.

The International Monetary Fund approved a 28 billion-euro ($36.6 billion) loan for Greece as part of a second bailout with the euro area that requires more austerity and steps up controls over the country’s spending. The Washington-based IMF said 1.65 billion euros will be immediately available under the new arrangement.

The Swiss franc strengthened 0.9 percent against the dollar and 0.5 percent versus the euro as the Swiss central bank kept its cap on the franc unchanged and said deflation still threatens the economy even as growth shows signs of stabilizing.

The Swiss National Bank, led by interim Chairman Thomas Jordan, maintained the franc ceiling at 1.20 francs per euro, as forecast by all 14 economists in a Bloomberg News survey. The Zurich-based central bank said in an e-mailed statement today that it also kept its benchmark interest rate at zero.

The MSCI Emerging Markets Index was little changed. The Shanghai Composite Index slipped 0.7 percent after foreign direct investment in China dropped for a fourth straight month, taking its two-decline to 3.3 percent, the most since Aug. 9.

The BSE India Sensitive Index lost 1.4 percent, its first retreat in five days, as the central bank kept rates on hold.

 

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

 

Try to be better than yourself.

-William Faulkner, 1897-1962

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:

Today – 3.14, is Pi Day:

Pi

This article is about the number. For the Greek letter, Pi, ?, and ?.

? (sometimes written pi) is a mathematical constant that is the ratio of any Euclidean circle’s circumference to its diameter. ? is approximately equal to 3.14. Many formulae in mathematics, science, and engineering involve ?, which makes it one of the most important mathematical constants. For instance, the area of a circle is equal to ? times the square of the radius of the circle.

? is an irrational number, which means that its value cannot be expressed exactly as a fraction having integers in both the numerator and denominator (unlike 22/7). Consequently, its decimal representation never ends and never repeats. ? is also a transcendental number, which implies, among other things, that no finite sequence of algebraic operations on integers (powers, roots, sums, etc.) can render its value; proving this fact was a significant mathematical achievement of the 19th century.

Throughout the history of mathematics, there has been much effort to determine ? more accurately and to understand its nature; fascination with the number has even carried over into non-mathematical culture. Perhaps because of the simplicity of its definition, ? has become more entrenched in popular culture than almost any other mathematical concept, and is firm common ground between mathematicians and non-mathematicians. Reports on the latest, most-precise calculation of ? are common news items; the record as of September 2011, if verified, stands at 5 trillion decimal digits.

The Greek letter ? was first adopted for the number as an abbreviation of the Greek word for perimeter (??????????), or as an abbreviation for “periphery/diameter”, by William Jones in 1706. The constant is also known as Archimedes’ Constant, after Archimedes of Syracuse who provided an approximation of the number during the 3rd century BC, although this name is uncommon today. Even rarer is the name Ludolphine number or Ludolph’s Constant, after Ludolph van Ceulen, who computed a 35-digit approximation around the year 1600.

–from Wikipedia, the free encyclopedia

photos of the day

March 14, 2012

A man looks at artwork as he is seen through the installation ‘Red Concave Circle’ by De Wain Valentine in the Pacific Standard Time exhibition at the Martin-Gropius-Bau exhibition hall in Berlin.

Thomas Peter/Reuters

A man takes pictures near The Monolith sculptures in the Vigeland Sculpture Park in Oslo. The sculpture park features 212 bronze and granite sculptures designed by Norwegian sculptor Gustav Vigeland between 1939 and 1949.

Stoyan Nenov/Reuters

Market Closures for March 14, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13194.10	+16.42
		+0.12%
S&P 500	1395.28	-1.67
		-0.12%
NASDAQ	3040.73	+0.85
		+0.03%
TSX	12377.90	-159.79
		-1.27%

International Markets

Market Index	Close	Change
NIKKEI	10050.52	+151.44
		+1.53%
HANG SENG	21307.89	-31.81
		-0.15%
SENSEX	17919.30	+105.68
		+0.59%
FTSE 100	5945.43	-10.48
		-0.18%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.154	2.067
CND. 30 Year Bond	2.704	2.635
U.S. 10 Year Bond	2.2722	2.1263
U.S. 30 Year Bond	3.4122	3.2688

Currencies

BOC Close	Today	Previous
Canadian $	1.00688	1.01171
US $	0.99317	0.98843
Euro Rate 1 Euro=		Inverse
Canadian $	1.29331	0.77285
US $	1.30281	0.76757

Commodities

Gold	Close	Previous
London Gold Fix	1642.90	1672.30
Oil	Close	Previous
WTI Crude Future	105.70	106.68

Market Commentary:

Canada

By Joseph Ciolli

March 14 (Bloomberg) — Canadian stocks fell for the second time in three days, led by gold companies, on speculation that an economic recovery will curb demand for the metal as an alternative investment.

Guyana Goldfields Inc., which explores for gold in South America, decreased 9.4 percent. China Gold International Resources Corp. fell 4.9 percent. Manulife Financial Corp., North America’s third-largest insurer, advanced 6.6 percent a day after the U.S. Federal Reserve raised its assessment of the economy and refrained from new actions to lower borrowing costs.

The S&P/TSX Composite Index declined 159.79 points, or 1.3 percent, to 12,377.90.

“With the Fed statements yesterday and the data coming out of the U.S., the market is getting a lot better,” Greg Taylor, a money manager at Aurion Capital Management in Toronto, said in a telephone interview. The firm oversees about C$5.5 billion

($5.6 billion). “With that happening, people don’t need their insurance policy, which has been gold. It looks like it has no support until C$1,600, and that’s just dragging these gold companies lower.”

The index has increased 0.6 percent since March 6, the day of its largest decline of the year, as stronger-than-forecast American jobs data and Greece’s debt restructuring helped offset concern over China’s lower growth target and Europe’s economic contraction. Energy and raw-materials companies make up 46 percent of Canadian stocks by market value, according to Bloomberg data.

Gold tumbled on speculation that the Federal Reserve will refrain from offering additional stimulus as the economy recovers. Futures for April delivery retreated 3 percent to

$1,646.90 an ounce at 1:41 p.m. in New York, the biggest loss since Feb. 29.

Guyana Goldfields fell 9.4 percent to C$4.04, while China Gold dropped 4.9 percent to C$4.23. Nevsun Resources Ltd., which mines the metal in the African country of Eritrea, decreased 6.5 percent to C$3.46. Eight out of the 10 biggest stock declines in the S&P/TSX were gold companies.

Financial stocks in the S&P/TSX, led by insurers, rose for a fifth straight day after the Fed yesterday said 15 of 19 U.S.

banks would be able to maintain capital levels above a regulatory minimum in an “extremely adverse” economic scenario. Treasuries slid, sending 10- and 30-year yields to a four-mouth high.

Manulife surged 6.6 percent to C$13.49 after rising 11 percent, the most intraday since November 2010. Industrial Alliance Insurance and Financial Services Inc. gained 11 percent to C$31.05 on the increased yields, the biggest increase in the S&P/TSX. Sun Life Financial Inc. rose 4.5 percent to C$22.61.

“The move can be traced to the increased in the 10-year bond yield, which is good for life companies,” Taylor said.

“That’s why Manulife is having a strong move today.”

GMP Capital Inc. fell 7.9 percent to C$7.20 after reporting fourth-quarter earnings per share excluding some items of 5 Canadian cents, missing the average analyst estimate of 9 Canadian cents.

Energy stocks in the S&P/TSX slipped with oil prices after inventories climbed to a six-month high.

Suncor Energy Inc., Canada’s largest oil and gas producer, dropped 3.8 percent to C$32.75. TransCanada Corp., the developer of the proposed Keystone XL pipeline, lost 1.6 percent to C$43.82.

US

By Susanne Walker and Rita Nazareth

March 14 (Bloomberg) — Treasuries slid, sending 10-year yields to a four-month high, while the dollar rose and gold tumbled as the Federal Reserve’s improved economic assessment caused investors to reduce bets on more monetary easing. Most U.S. stocks fell a day after the biggest rally of 2012.

The U.S. 10-year yield increased 14 basis points to 2.27 percent and the dollar strengthened versus all 16 major peers.

The Standard & Poor’s 500 Index retreated 0.1 percent to

1,394.28 at 4 p.m. in New York after yesterday closing at its highest level since June 2008. The Dow Jones Industrial Average rose for a sixth day, its longest rally in more than a year, ending up 16.42 points at a more-than four-year high of 13,194.1. Gold futures slid to an eight-week low.

The Fed said yesterday that strains in global financial markets have eased and the labor market is gathering strength.

The central bank said separately that 15 of the nation’s largest

19 banks may keep adequate capital levels even in a recession.

European industrial output rose 0.2 percent in January from the previous month. Chinese Premier Wen Jiabao said relaxing property curbs could cause “chaos” in the market.

“Some worry that with the Fed’s upgrade of the economic environment, they may not do a bond purchase program on the long end,” said Ira Jersey, an interest-rate strategist at Credit Suisse Group AG in New York, one of 21 primary dealers that are required to bid at the auctions.

The yield on the 30-year U.S. Treasury climbed 14 basis points to 3.41 percent, the highest since October. The government today sold $13 billion auction of 30-year bonds at yield of 3.383 percent, the highest since August. The Fed’s 21 primary dealers that are required to bid at the sale were awarded 56.3 percent of the securities, compared with an average of 52 percent for the past five sales. Two-year yields increased four basis points to 0.39 percent.

The S&P GSCI Index of commodities lost 0.8 percent as silver and gold led declines among 21 of 24 raw materials.

Copper dropped the most in a week, losing 1.4 percent to $3.848 a pound, on concern demand will ease in China. Gold for April delivery declined 3 percent to $1,642.90 an ounce. Oil for April delivery slid 1.2 percent to settle at $105.43 a barrel in New York after stockpiles at Cushing, Oklahoma, climbed to the highest level in nine months.

More than two stocks retreated for each that rose on U.S.

exchanges. MetLife Inc. slid 5.8 percent after a plan for a share buyback was rejected by the Fed. The Dow Jones Transportation Average lost 1.4 percent as railroads CSX Corp.

and Norfolk Southern Corp. tumbled at least 2.9 percent. Apple Inc. advanced 3.8 percent to a record $589.58 after Morgan Stanley raised its share-price estimate to $720.

The Dow Jones Industrial Average surged 218 points yesterday and closed at the highest level since 2007, while financial shares in the S&P 500 rallied 3.9 percent as a group, the biggest gain of the year. The Fed said that it expects “moderate economic growth” and predicted the unemployment rate “will decline gradually.”

“Investors globally believe that macro risks have subsided” because of central bank actions, Tony Crescenzi, a strategist at Pacific Investment Management Co., said today in a radio interview on “The Hays Advantage” with Kathleen Hays and Vonnie Quinn. PIMCO manages the world’s biggest bond fund in Newport Beach, California. “The data as it’s accumulated has convinced more and more investors that the U.S. economy is on firmer footing than many previously thought.”

JPMorgan Chase & Co. and Wells Fargo joined banks raising dividends and authorizing share repurchases after passing the stress tests. The results of the Fed’s tests showed that almost three years of economic expansion have helped U.S. banks raise profits, rebuild capital and increase liquidity after the collapse of Lehman Brothers Holdings Inc. in 2008.

Citigroup Inc., the lender that took the most government aid during the financial crisis, said it will resubmit its capital plan to regulators after failing to meet some minimum standards in the tests. Citigroup has repaid $45 billion in TARP money. Chief Executive Officer Vikram Pandit said in a memo to employees today that the bank still plans a “meaningful”

payout to shareholders.

“I was expecting all of the banks to pass, but when you look at the terms, the stress tests were so onerous that a modest miss really isn’t all that discouraging,” said William Fitzpatrick, a Milwaukee-based financial-services analyst at Manulife Asset Management, whose team oversees $800 million.

The Stoxx 600 advanced for a second day as three shares gained for every two that declined. Barclays Plc and Credit Suisse Group AG climbed at least 3.9 percent to lead a rally in bank stocks. EON AG, Germany’s largest utility, jumped 6 percent as earnings exceeded analysts’ estimates. Legal & General Group Plc surged 7.2 percent after the fourth-biggest U.K. insurer by market value boosted its dividend as full-year profit rose.

The dollar advanced 0.4 percent to $1.3026 against the euro and strengthened 1 percent versus the yen. The Dollar Index, a gauge of the currency against six major peers, increased 0.5 percent to the strongest level since January.

The pound strengthened versus 14 of 16 major peers and the yield on the 10-year gilt jumped 17 basis points to 2.34 percent.

Britain is proposing to revive “perpetual gilts,” first used in the wake of the 1720 South Sea Bubble crisis, to allow the government to borrow for as long as possible at record-low rates, according to two people familiar with budget discussions.

Chancellor of the Exchequer George Osborne will use his March 21 budget to announce a consultation on introducing bonds of up to

100 years and reviving debt with no fixed maturity.

The two-year Italian yield slipped four basis points to

1.997 percent as the government sold 6 billion euros ($7.8

billion) of bonds today, with borrowing costs on its three-year debt falling to the lowest since October 2010.

The MSCI Emerging Markets Index was little changed.

Benchmark indexes in Turkey, Poland, Hungary and South Korea gained at least 1 percent, offsetting declines in China and Brazil. Russia’s Micex Index added 0.8 percent.

China’s Shanghai Composite Index sank 2.6 percent, the biggest drop since Nov. 30. A gauge tracking Chinese property stocks in Shanghai slid 3.7 percent. Anhui Conch Cement Co., the nation’s biggest maker of the building material, fell 3.3 percent, and Poly Real Estate Group Co., China’s second-largest developer by market value, slumped 3 percent.

 

Have a wonderful evening 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

 

The opposite of love is not hate, it’s indifference.

The opposite of art is not ugliness, it’s indifference.

The opposite of faith is not heresy, it’s indifference.

And the opposite of life is not death, it’s indifference.

-Elie Wiesel, 1928-

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

Senior Vice-President &

Senior Investment Advisor

 

Dear Friends,

 

Tangents:

 

March 13^th, 1781: Planet Uranus discovered.

 

I read this poem last night in this week’s edition of The New Yorker:

 

TRUTH

 

Came varnished,

prepackaged, required

scissors to break the seal.

Worn raw from use, reuse

it put up splinters.

I sanded it, wiped it

clear with turpentine.

Liked the look of it

newborn,  thought about

polyurethane, two coats

at least – varnish is old hat.

Rethought the climate:

cutting, quick to punish.

Went out for more varnish.

 

-Maxine Kumin

 

photos of the day

March 13, 2012

A man snaps a photo of a blossoming tree with his iPhone outside the Philadelphia Museum of Art in Philadelphia.

Matt Rourke/AP

Jason Maguire on Cinders and Ashes (r.) jumps the last fence ahead of Robert Thornton on Montbazon during the Supreme Novices Hurdle Race, the first race of the day of the Cheltenham Festival horse racing meet, in Gloucestershire, western England. Maguire won.

Eddie Keogh/Reuters

 

Market Closures for March 13, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	13177.68	+217.97
		+1.68%
S&P 500	1395.95	+24.86
		+1.81%
NASDAQ	3039.88	+56.22
		+1.88%
TSX	12537.69	+109.68
		+0.88%

International Markets

Market  Index	Close	Change
NIKKEI	9899.08	+9.22
		+0.09%
HANG  SENG	21339.70	+205.52
		+0.97%
SENSEX	17813.62	+225.95
		+1.28%
FTSE 100	5955.91	+63.16
		+1.07%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.067	1.996
CND.   30 Year Bond	2.635	2.583
U.S.   10 Year Bond	2.1263	2.0296
U.S.   30 Year Bond	3.2688	3.1655

Currencies

BOC Close	Today	Previous
Canadian $	1.01171	1.00758
US   $	0.98843	0.99248
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29342	0.77314
US  $	1.30857	0.7614

Commodities

Gold	Close	Previous
London Gold   Fix	1672.30	1700.70
Oil	Close	Previous
WTI Crude Future	106.68	106.42

Market Commentary:

Canada

By Joseph Ciolli

March 13 (Bloomberg) — Canadian stocks rose for the fourth time in five days, led by commodity shares, after the U.S. Federal Reserve left policy unchanged, citing an improving labor market, and U.S. retail sales met forecasts.

Denison Mines Corp., the operator of three U.S. uranium mines, gained 9.3 percent after China Daily quoted an official as saying the country plans to increase imports of the nuclear fuel this year and buy uranium mines in Canada. Manulife Financial Corp., North America’s third-largest insurer, rose 2.4 percent on the retail sales report. Teck Resources Ltd., Canada’s biggest base-metals producer, rose 2.3 percent as copper climbed to the highest price in a week on prospects of improved demand from the U.S.

The S&P/TSX Composite Index rose 91.54 points, or 0.7 percent, to 12,519.55 at 3:07 p.m. in Toronto. The index extended gains in afternoon trading after Federal Reserve policy makers led by Chairman Ben Bernanke raised their assessment of the economy and refrained from new actions to lower borrowing costs.

“I would say the announcement is neutral,” Danielle Park, a money manager at Venable Park Investment Counsel Inc. in Barrie, Ontario, said in a telephone interview. The firm manages at least C$1 million ($1 million) each for more than 200 clients. “Stocks rallied this morning supposedly on hope for some message, but I wouldn’t say he delivered it. He’s saying that global market stresses have eased and that higher oil is going to push up inflation temporarily. That would suggest to me that he would be on hold for QE.”

The index has increased 1.8 percent since March 6, the day of its largest decline of the year, as stronger-than-forecast American jobs data and Greece’s debt restructuring helped offset China’s lower growth target and Europe’s economic contraction.

Energy and raw-materials companies make up 46 percent of Canadian stocks by market value, according to Bloomberg data.

Equities advanced today after Commerce Department data showed U.S. retail sales rose 1.1 percent in February, matching the median forecast of 81 economists surveyed by Bloomberg News.

Sales rose in 11 of 13 categories, including auto dealers and clothing stores, showing gains in demand were broad based.

Raw-materials stocks in the S&P/TSX rose on the retail sales data. First Quantum Minerals Ltd., Canada’s second-largest publicly traded copper producer increased 3.3 percent to C$21.13. Teck increased 2.3 percent to C$36.29.

Denison Mines surged 9.3 percent to C$1.64.

China plans to import more uranium this year than last, Qian Zhiming, the deputy director of China’s National Energy Administration, told China Daily. The country imported 16,126 tons of uranium in 2011, the newspaper said, citing customs data. China aims to buy overseas uranium mines, particularly those in Canada, Qian was quoted as saying.

Financial companies in the index increased for a fourth day. Royal Bank of Canada, the country’s largest lender by assets, advanced 1.9 percent to C$57.88. Toronto-Dominion Bank, Canada’s second-largest lender, rose 0.9 percent to C$83.10.

Manulife climbed 2.4 percent to C$12.57.

US

By Nick Baker and Rita Nazareth

March 13 (Bloomberg) — U.S. stocks rose, sending the Dow Jones Industrial Average to the highest level since 2007, and Treasuries fell after the Federal Reserve raised its assessment of the economy and JPMorgan Chase & Co. increased its dividend.

The Standard & Poor’s 500 Index added 1.8 percent to 1,395.95 at 4 p.m. New York time and the Dow climbed 217.97 points to 13,177.68. The Chicago Board Options Exchange Volatility Index dropped to 13.99, the lowest intraday level since 2007. Yields on 10-year Treasuries advanced a fifth day, reaching 2.13 percent. S&P 500 futures rose 0.1 percent at 4:53 p.m. while Citigroup retreated 3 percent after the Fed said it failed a stress test.

The U.S. central bank said the economic outlook has improved as the labor market gathers strength. Policy makers refrained from new action to lower borrowing costs. Gains in equities were also spurred by U.S. Commerce Department data showing retail sales jumped 1.1 percent in February. JPMorgan’s shares rallied 7 percent after the bank boosted its dividend and announced a $15 billion buyback.

“People are realizing that the world is not ending,” John Canally, who helps oversee about $330 billion as an economist and investment strategist at LPL Financial Corp. in Boston, said in a telephone interview. “There’s a lot of good positive momentum in the market. The retail sales data is helping.”

The dollar strengthened against the euro and yen. Copper futures rallied 1.8 percent, crude oil rose 0.4 percent and gold declined 1.6 percent in electronic trading.

Today’s rally pushed the S&P 500 above its March 1 peak, completing its recovery from the subsequent three-day loss.

Before the Fed’s comments, the Chicago Board Options Exchange Volatility Index, or VIX, fell to an almost five-year intraday low of 13.99. It’s a gauge of how much investors are paying to protect against losses in the S&P 500, which has rallied five straight days. The VIX ended the day at 14.80, down 5.4 percent.

JPMorgan led financial shares higher. The biggest U.S. bank raised its quarterly dividend to 30 cents from 25 cents and authorized a share-repurchase plan as lenders respond to the Fed’s tests of how they would fare in an economic decline. Bank of America Corp. and Goldman Sachs Group Inc. advanced more than 6.2 percent.

Citigroup declined after the New York Stock Exchange closed at 4 p.m. The third-largest U.S. bank failed to meet the Fed’s minimum requirements in a stress test when examiners considered the effects of the firm’s plan for managing capital.

The Fed said at 4:30 p.m. New York time that 15 of the 19 largest U.S. banks could maintain adequate capital levels even in a recession scenario in which they continue paying dividends and buy back stock.

Apple Inc. rose 2.9 percent, rallying for a fifth straight day, as Jefferies Group Inc. raised its share-price estimate to $699. That helped send the Nasdaq Composite Index above 3,000 for the first time since 2000. The Dow Jones Transportation Average, considered a proxy for economic growth, climbed 2.1 percent.

German bunds fell, pushing 10-year yields up by the most in a month, after a report showed investor confidence in Europe’s largest economy improved, sapping demand for the region’s safest securities. The yield on the 10-year bund rose six basis points, or 0.06 percentage point, to 1.82 percent.

Greek bonds issued to investors as part of the nation’s debt swap declined on their first full day of trading. The yield on the 2 percent bonds due in February 2023 rose 57 basis points, to 19.02 percent.

Spanish securities slipped after European finance chiefs meeting yesterday called on the nation to make deeper budget cuts. The yield on the nation’s 10-year bond yield climbed eight basis points to 5.13 percent.

 

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

As ever,

 

Carolann

 

Everybody wants to save the earth; nobody

wants to help Mom do the dishes.

-P.J. O’Rourke, 1947-

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:

Birthday, Jack Kerouac, March 12, 1922.  In a conversation with the writer John Clellon Holmes, Jack Kerouac coined the term “Beat Generation” to describe the “beatness” or “weariness with the world of his post-war generation.  As a young man, he criss-crossed the country, studying Buddhism, working at odd jobs, and staying with his friends Allen Ginsberg and William S. Burroughs.  Eventually he wrote On the Road, the book that catapulted him into reluctant fame in 1957.  Other books followed, including The Dharma Bums and Big Sur.  By the time he died of alcoholism in 1969, Kerouac had left his mark on American literary history with his spontaneous prose style, and continues to inspire legions of young people to live life on their own terms…

“… and everything is going to the beat.  It’s the beat generation, it be-at, it’s the beat to keep, it’s the beat of the heart, it’s being beat and down in the world and like oldtime lowdown and like ancient civilizations the slave boatmen rowing galleys to a beat and servants spinning pottery to a beat…”  -Jack Kerouac.

We saw the wonderful opera Orphée et Eurydice for the first time on the weekend, presented  by Seattle Opera.   This French opera, with music composed by Christoph Willibald Gluck, and the libretto by Pierre Louis Moline, premiered on August 2^nd, 1774 in Paris, but we had never experienced it before.  It is probably the most brilliant choreography by Yannis Adonious of Athens, Greece, ever – absolutely magical.  Art indeed can transform our lives…

 

photos of the day

March 12, 2012

Budding cherry blossom trees along the tidal basin are seen with the Washington Monument in the background in Washington, D.C. This year marks the 100th anniversary of the gift of the trees from Japan, with peak bloom expected between March 24-31, according to the National Park Service.

Jacquelyn Martin/AP

People walk at a park near the river Main in Frankfurt, Germany.

Alex Domanski/Reuters

Market Closures for March 12, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12959.71	+37.69
		+0.29%
S&P 500	1371.09	+0.22
		+0.02%
NASDAQ	2983.66	-4.68
		-0.16%
TSX	12428.01	-75.61
		-0.60%

International Markets

Market Index	Close	Change
NIKKEI	9889.86	-39.88
		-0.40%
HANG SENG	21134.18	+48.18
		+0.23%
SENSEX	17587.67	+84.43
		+0.48%
FTSE 100	5892.75	+5.26
		+0.09%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.996	2.008
CND. 30 Year Bond	2.583	2.595
U.S. 10 Year Bond	2.0296	2.0279
U.S. 30 Year Bond	3.1655	3.1778

Currencies

BOC Close	Today	Previous
Canadian $	1.00758	1.00957
US $	0.99248	0.99052
Euro Rate 1 Euro=		Inverse
Canadian $	1.30580	0.76582
US $	1.31569	0.76006

Commodities

Gold	Close	Previous
London Gold Fix	1700.70	1714.30
Oil	Close	Previous
WTI Crude Future	106.42	107.42

Market Commentary:

Canada:

By Matt Walcoff

March 12 (Bloomberg) — Canadian stocks fell for the first time in four days as fuels and metals dropped after China reported a smaller gain in exports than most economists in a Bloomberg survey had forecast.

Suncor Energy Inc., Canada’s largest oil and gas producer, lost 3.1 percent as the fuels declined on the New York Mercantile Exchange. Goldcorp Inc., the world’s second-biggest gold producer by market value, decreased 1.4 percent as precious metals retreated. Viterra Inc., Canada’s largest grain handler, rose 6.4 percent after an analyst at Bank of Montreal said the company may be bought for as much as C$17.50 a share.

The S&P/TSX Composite Index slipped 75.61 points, or 0.6 percent, to 12,428.01.

“There’s been a number of cautionary straws in the wind, such as the slowdown in China: How deep is it?” Bob Decker, a money manager at Aurion Capital in Toronto, said in a telephone interview. The firm oversees about $5.5 billion. “If you’re looking for growth, and equity markets typically live and die on growth, you’re going to have to see it somewhere, and emerging markets are where most people are expecting a resumption of growth to be most robust.”

The index fell 1.8 percent in the previous two weeks in its first back-to-back weekly decline since Dec. 16 as commodity producers dropped with the prices of oil, natural gas and precious metals. Energy and raw-materials companies make up 47 percent of Canadian stocks by market value, according to Bloomberg data.

Chinese exports increased 18 percent in February from a year earlier, the country’s customs bureau said March 10.

Economists had forecast a gain of 31 percent, according to the median estimate in a Bloomberg survey. China also reported smaller-than-forecast increases in retail sales and industrial production for February last week.

Crude oil futures retreated for the first time in four days, while natural gas slipped on forecasts for above-normal temperatures in the U.S.

Suncor lost 3.1 percent to C$33.19. Canadian Natural Resources Ltd., the country’s second-largest energy company by market value, decreased 3.1 percent to C$34.40. Canadian Oil Sands Ltd., the largest owner of the Syncrude project, slipped

2.6 percent to C$21.86.

Precious-metals producers in the S&P/TSX retreated as gold and silver fell on the Comex in New York. Barrick Gold Corp., the world’s largest gold-mining company, dropped 0.4 percent to C$45.29, extending its streak of losses to nine days. Goldcorp declined 1.4 percent to C$46.25. New Gold Inc., which mines in Mexico, the U.S. and Australia, slumped 4.9 percent to C$10.06.

China Gold International Resources Corp. soared 19 percent, the most since October 2009, to C$4.56. The surge probably reflects Van Eck Associates Corp.’s increase in China Gold’s weighting in the Market Vectors Junior Gold Miners Index, which is used for a $2.41 billion exchange-traded fund, Marcus Xu, director of equity investments at Genus Capital Management in Vancouver, said in a telephone interview. Xu’s firm oversees about C$1.7 billion ($1.7 billion).

Base-metals companies retreated after the data release from China, the world’s largest user of the commodities. Teck Resources Ltd., Canada’s biggest company in the industry, lost

2.9 percent to C$35.48. Copper, zinc and gold producer HudBay Minerals Inc. decreased 5.6 percent to C$11.49.

SouthGobi Resources Ltd., which mines coal in Mongolia for Chinese steel mills, fell 9.9 percent to C$6.19 after S&P said it will cut the stock from the S&P/TSX.

Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, fell 2.1 percent to C$42.75. China was the fourth-biggest importer of Canadian fertilizer in 2011, according to Statistics Canada.

Viterra advanced 6.4 percent to C$14.45 after surging 24 percent March 9, when it said it had “received expressions of interest from third parties.”

The company may sell for C$14.50 a share to C$17.50 a share, Kenneth B. Zaslow, an analyst at BMO, wrote in a note to clients today. Glencore International Plc, the world’s largest publicly traded commodities supplier, is among the companies that expressed an interest in a potential offer for Regina, Saskatchewan-based Viterra, according to a person familiar with the situation who declined to be identified because the details haven’t been made public.

US:

By Rita Nazareth

March 12 (Bloomberg) — Most U.S. stocks retreated, capping the thinnest trading day in 2012, as investors weighed whether a Chinese slowdown will lead to an easing of monetary policy.

Newmont Mining Corp. and Schlumberger Ltd. lost more than

1.9 percent as commodities fell. Financial companies slid on concern about how banks will perform in Federal Reserve stress tests and as the cost of insuring against default on European sovereign bonds rose to the highest in eight weeks. Gauges of utility and telephone providers in the S&P 500, which are least- tied to economic growth, gained. Apple Inc. rose 1.3 percent.

Seven stocks declined for every five rising on U.S.

exchanges at 4 p.m. New York time, with about 5.2 billion shares changing hands. The S&P 500 advanced less than 0.1 percent to

1,371.09 today. The Dow Jones Industrial Average increased 37.69 points, or 0.3 percent, to 12,959.71. The Russell 2000 Index of smaller companies retreated 0.3 percent to 814.29.

“The U.S. is in good shape, yet China is a big question mark,” said Erick Maronak, chief investment officer of Victory Capital Management Inc. in New York. His firm oversees $28 billion. “How much will they have to ease to get things back on track? Europe is still going to be a huge work in progress. Now that there’s some greater visibility on the Greece situation, everyone starts looking at dominoes two and three.”

The S&P 500 advanced 2.1 percent in the past four weeks amid better-than-expected economic data and as companies beat analysts’ profit forecasts for a 12th straight quarter. The benchmark gauge is up 9 percent this year.

Equities swung between gains and losses as China had the biggest trade deficit in at least 22 years, the weakest January- February factory-production gain since 2009 and retail sales were below the median economist estimate. Euro-area finance ministers gather in Brussels to sign off on the 130 billion-euro

($170 billion) second package for Greece as they focus on Spain’s budget-cutting efforts and Portugal’s aid program.

Energy and raw material shares fell as the S&P GSCI index of 24 commodities dropped 0.4 percent. Newmont Mining, the largest U.S. gold producer, dropped 2 percent to $55.75.

Schlumberger, the world’s largest oilfield-services provider, declined 2.4 percent to $74.02.

“Some people are pointing to the evidence of a slower growth in China as the catalyst for today’s weakness,” said Mike Ryan, the New York-based chief investment strategist at UBS Wealth Management Americas. His firm oversees $754 billion.

“Incremental demand for commodities still largely comes from Asia. The central banks are not going to be providing as much liquidity as they had in the past.”

The KBW Bank Index lost 0.7 percent as 17 of its 24 stocks retreated. JPMorgan Chase & Co. slid 1.2 percent to $40.54.

Regions Financial Corp. slumped 2.9 percent to $5.63.

Investors may be disappointed by how U.S. banks perform in Fed stress tests as examiners expect consumer-loan losses to surpass the industry’s estimates if there’s another severe recession, analysts say.

The Fed generally has predicted firms would suffer greater losses on mortgages and credit cards than what banks estimated in capital plans submitted in January, two people with knowledge of the situation said last week, without identifying specific firms. The divergence may endanger some of the $9 billion in dividend increases and share buybacks analysts estimate may be announced after the Fed releases results this week.

“The concern is that while banks may not have to raise capital, they might not be able to return capital as fast as shareholders want,” Walter Todd, who oversees $950 million as chief investment officer at Greenwood Capital in Greenwood, South Carolina, said in a telephone interview.

Oracle Corp. slipped 1.4 percent to 29.71. The software maker was cut to hold from buy at Jefferies Group Inc., citing “greater challenges” to its engineered systems strategy.

The Bloomberg U.S. Airlines Index retreated 1.5 percent.

United Continental Holdings Inc. slumped 1 percent to $19.62.

Southwest Airlines Co. declined 2.4 percent to $8.28. The shares were cut to neutral from buy at Bank of America Corp.

Dynegy Inc. tumbled 35 percent to 50 cents, a record low.

The third-largest independent U.S. power producer’s bankruptcy should be taken over by a court-approved trustee who will better protect creditors, the U.S. Trustee monitoring the case for the federal government said in court papers.

Companies which are least-dependent on economic activity rose today. Constellation Energy Group Inc. advanced 3 percent to $37.23. Wal-Mart Stores Inc. added 1 percent to $60.68.

Apple rallied 1.3 percent to $552, a record high. The shares have risen 4.1 percent in four days.

Harley-Davidson Inc. added 2.6 percent to $48.11. The biggest U.S. motorcycle maker had its share-price estimate boosted to $50 from $46 by Citigroup Inc., which said the company’s retail sales have increased 16 percent to 18 percent so far in the first quarter.

Equifax Inc. climbed 3.4 percent, the most in the S&P 500, to $44.09. The provider of consumer-credit information was increased to buy from neutral at SunTrust Robinson Humphrey Inc., which said the company is poised to deliver “sustainable above-average” growth in sales and earnings.

Transportation and industrial shares are diverging in the U.S., a signal that equity investors are starting to agree with what the bond market already knows: this economic recovery will remain sluggish for months to come.

The Dow Jones Transportation Average has fallen 3.9 percent from its six-month high on Feb. 3, while the Dow Jones Industrial Average added 0.5 percent. The gauge of 20 shipping companies peaked before the rest of the market when the technology bubble popped in 2000 and began slipping into a bear market three months before broader benchmark indexes in 2007.

While Laszlo Birinyi, the founder of Birinyi Associates Inc., says falling transport stocks don’t signal an end to the three-year bull market that doubled the S&P 500, money managers at Robert W. Baird & Co. and Legg Mason Inc. say the 25 percent rise in the index since October may have gone too fast.

Transport stocks are falling as 10-year Treasury yields stay near 2 percent, with economists forecasting the slowest post-recession recovery since World War II.

“In a healthy market, everything is going in the same direction,” said Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird, which oversees $85 billion.

“When that starts to diverge, that raises a flag that potential trouble may be brewing.”

Monster Beverage Corp.’s escalating profit from energy drinks pumped full of caffeine and nitrous oxide may tempt acquirers to chase what would be the most expensive takeover in the industry’s history.

After the stock more than doubled in the last year, Monster Beverage is valued at 20 times earnings before interest, taxes, depreciation and amortization, the priciest multiple of any North American soft-drink maker greater than $500 million, according to data compiled by Bloomberg that includes net debt.

“What Monster’s so successfully done in the last few years is proven that demand for energy drinks is fairly universal among young people,” Caroline Levy, a beverage and household products analyst for Credit Agricole Securities USA Inc. in New York, said in a telephone interview. “This business is now too big to ignore. If you’re a player in soft drinks, I think it’s very hard not to be in the highest-margin, highest-growth category out there.”

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

The wind and waves are always on the side

of the ablest navigator.

-Edward Gibbon, 1737-1852

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

Senior Vice-President &

Senior Investment Advisor

 

Dear Friends,

 

Tangents:

 

Green therapy

Gardens can promote healing, says Scientific American.  “Scientists around the world are now digging into the data to find out which features of gardens account for the effect.”

 

• Lush, layered landscapes with shade trees, flowers and shrubs at various heights should take up roughly 70 per cent of the space.

 

• Abstract sculptures do not soothe people who are sick or worried.

 

• Gardens that can be seen, touched, smelled and listened to soothe best.  But avoid strongly fragrant flowers or other odours for patients undergoing chemotherapy.

 

• Fountains that sound like dripping faucets do not soothe anyone.

-Globe & Mail

 

photos of the day

March 9, 2012

The northern lights, or aurora borealis, fill the western sky above the Russian Orthodox Saint Nicholas Memorial Chapel in Kenai, Alaska. The display of lights came in the aftermath of a solar storm that struck Earth on Thursday.

M. Scott Moon/Peninsula Clarion/AP

People walk through the Casa Enzo Ferrari museum during a media preview in Modena, northern Italy. The museum honors the life and work of Enzo Ferrari, the founder of the Italian sports car manufacturer, and will officially open on Saturday.

Alessandro Bianchi/Reuters

Market Closures for March 9, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12922.02	+14.08
		+0.11%
S&P 500	1370.87	+4.96
		+0.36%
NASDAQ	2988.34	+17.92
		+0.6%
TSX	12503.62	+41.69
		0.33%

International Markets

Market Index	Close	Change
NIKKEI	9929.74	+160.78
		+1.65%
HANG SENG	21086.00	+185.27
		+0.89%
SENSEX	17503.24	+357.72
		+2.09%
FTSE 100	5887.49	+27.76
		+0.47%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.008	2.009
CND. 30 Year Bond	2.595	2.595
U.S. 10 Year Bond	2.0279	2.0156
U.S. 30 Year Bond	3.1778	3.1761

Currencies

BOC Close	Today	Previous
Canadian $	0.99052	1.00972
US $	1.00957	0.99038
Euro Rate 1 Euro=		Inverse
Canadian $	1.29983	0.76933
US $	1.31226	0.76204

Commodities

Gold	Close	Previous
London Gold Fix	1714.30	1400.10
Oil	Close	Previous
WTI Crude Future	107.42	106.21

Market Commentary:

Canada

By Matt Walcoff

March 9 (Bloomberg) — Canadian stocks rose, trimming a weekly loss, as energy and financial shares advanced after the U.S. reported a bigger gain in payrolls than most economists in a Bloomberg survey had forecast.

Nexen Inc., an oil and gas producer with operations on five continents, climbed 2.1 percent as crude oil headed for a weekly increase. Viterra Inc., Canada’s biggest grain handler, jumped 25 percent after saying it “received expressions of interest from third parties.” Neo Material Technologies Inc., which makes rare-earths and zirconium products, soared 37 percent after agreeing to be bought by Molycorp Inc.

The S&P/TSX Composite Index gained 37.57 points, or 0.3 percent, to 12,499.50 at 2:15 p.m. Toronto time, reducing its weekly drop to 1.1 percent.

“The U.S. economy is clearly improving — not stellar growth, but improving,” Jeff Bradacs, a money manager on a Manulife Financial Corp. team that oversees about C$1.5 billion ($1.5 billion), said in a telephone interview. “The stronger job number in the U.S. is important because it’s driving demand for commodities and oil, and that’s important for the Canadian stock market.”

The S&P/TSX is set to retreat for a second-straight week for the first time since Dec. 16. Raw-materials and energy stocks have slipped as the U.S. dollar rose on concern about sovereign debt and a potential economic slowdown in Europe, amid speculation the U.S. Federal Reserve won’t begin a third round of asset purchases. Resources companies account for 47 percent of Canadian stocks by market value, according to Bloomberg data.

U.S. nonfarm employers added 227,000 jobs in February, the Labor Department said today in Washington. Economists had forecast an increase of 210,000 positions, according to the median estimate in a Bloomberg survey.

Energy companies in the S&P/TSX gained as crude advanced for a third day on the New York Mercantile Exchange. Nexen increased 2.1 percent to C$19.94. Penn West Petroleum Ltd., a western Canadian oil and gas producer, rose 1.6 percent to C$20.78.

Oil-sands developer Athabasca Oil Sands Corp. climbed 4.2 percent to C$12.12 after R. Jason Konzuk, an analyst at Dundee Securities, assigned it a buy rating in new coverage.

“Athabasca has demonstrated the ability to compress project timelines through the execution of joint ventures, and we believe has the necessary financial capacity and technical capability to allow it to concurrently advance its project portfolio,” Konzuk wrote in a note to clients.

The S&P/TSX Financials Index advanced after the release of the U.S. economic data. Manulife, North America’s third-largest insurer, gained 1.6 percent to C$12.19. Sun Life Financial Inc., Canada’s third-biggest insurance company, climbed 1.2 percent to C$21.10. Bank of Montreal, the country’s fourth-largest lender by assets, increased 0.6 percent to C$57.88.

Base-metals and coal producers rose as copper gained for a third day on the Comex in New York. Teck Resources Ltd., Canada’s largest company in the industry, advanced 1 percent to C$36.56. First Quantum Minerals Ltd., the country’s second- largest publicly traded copper producer, increased 2.3 percent to C$21.02.

Copper and zinc producer HudBay Minerals Inc. rallied 5.6 percent to C$12.32. Shane Nagle, an analyst at National Bank of Canada, raised his rating on the shares to outperform from sector perform two days after it reported fourth-quarter earnings that beat the average analyst estimate in a Bloomberg survey by 40 percent, excluding certain items. An outperform rating means the stock will gain more than other companies the analyst monitors.

Viterra surged 25 percent to C$13.72 after rallying as much as 28 percent, the most intraday in nine years. The Canadian government’s plan to end the Canadian Wheat Board monopoly may encourage a takeover bid for the Regina, Saskatchewan-based company, Jason Zandberg, an analyst at PI Financial Corp. in Vancouver, said in a telephone interview.

Due to Viterra’s jump, the S&P/TSX Consumer Staples Index climbed the most intraday since January 2009, wiping out its decline for the year.

Neo Material Technologies jumped 37 percent to a record C$10.95 after Greenwood Village, Colorado-based mining company Molycorp agreed to buy the company for about C$1.3 billion ($1.3 billion) in cash and shares. Neo owners will receive C$8.05 in cash and 0.122 of a Molycorp share for each Neo share. Molycorp rose 16 percent in New York.

Rare Element Resources Ltd., which is developing a rare- earths project in Wyoming, surged 18 percent to C$5.95. Quest Rare Minerals Ltd., which explores in eastern Canada, soared 18 percent to C$2.93.

Uranium producer Denison Mines Ltd. plunged 11 percent to C$1.55 after reporting a fourth-quarter loss of 9 cents a share, excluding certain items. Analysts had forecast a loss of 3 cents a share, according to the average estimate in a Bloomberg survey. The shares tumbled as much as 14 percent, the most intraday in 11 months.

US

By Rita Nazareth

March 9 (Bloomberg) — U.S. stocks rose, capping the fourth straight weekly rally for the Standard & Poor’s 500 Index, after a government report showing stronger-than-forecast payroll growth bolstered optimism in the world’s largest economy.

Financial shares had the biggest gain among 10 groups in the S&P 500 as Greece’s private creditors agreed to a debt swap.

JPMorgan Chase & Co. and BB&T Corp. added at least 1.2 percent.

Lennar Corp. and D.R. Horton Inc. rallied more than 3 percent, pacing gains in homebuilders, after Credit Suisse Group AG raised its recommendations for the companies. Starbucks Corp. rose 2.9 percent on plans to introduce a new single-cup brewer.

The S&P 500 added 0.4 percent to 1,370.87 at 4 p.m. New York time. The index rose 2.1 percent in four weeks. The Dow Jones Industrial Average gained 14.08 points, or 0.1 percent, to 12,922.02. The Russell 2000 Index of small companies jumped 1.3 percent to 817. About 6.2 billion shares changed hands on U.S. exchanges, or 6.4 percent below the three-month average.

“The jobs report was solid, but not spectacular,” said James McDonald, chief investment strategist at Northern Trust Corp. in Chicago. His firm manages $663 billion. “This helps depict the U.S. as the standout Western economy continuing to slowly, but steadily repair. We didn’t see any improvement in the unemployment rate. That tells me the Fed is going to stay accommodative. The path of least resistance for stocks is up.”

Today is the three-year anniversary of the bull market in U.S. stocks that followed the global financial crisis. The S&P 500 has rallied 103 percent from its 12-year low on March 9, 2009, on better-than-estimated economic and corporate data. The index is up 9 percent in 2012.

Equities rose today amid the best six-month streak of job growth since 2006. The 227,000 increase in payrolls last month topped the median projection of economists in a Bloomberg News survey. The jobless rate held at 8.3 percent. The latest pickup in employment may not be convincing enough for Federal Reserve Chairman Ben S. Bernanke, who last week said the labor market remains “far from normal,” a sign policy makers continue to see merit in keeping interest rates low for several years.

Investors also watched developments in Europe’s attempts to tame its debt crisis. Greece pushed through the biggest sovereign restructuring in history, opening the way for a second rescue package. An industry group ruled that Greece’s debt restructuring is a “credit event” that will trigger $3 billion in default insurance.

“This is a story of isolating Greece and preventing a massive financial contagion,” said Brad Sorensen, director of market and sector analysis at San Francisco-based Charles Schwab Corp., which has $1.74 trillion in client assets.

Nine of 10 groups in the S&P 500 gained today, led by financial shares. The KBW Bank Index rallied 1 percent as 23 of its 24 stocks advanced. JPMorgan advanced 1.5 percent, the most in the Dow, to $41.03. BB&T increased 1.2 percent to $29.46.

A measure of homebuilders in S&P indexes rallied 3.3 percent. Lennar increased 3.1 percent to $25.45, while D.R.

Horton climbed 6.3 percent to $15.47. The shares were raised to the equivalent of buy at Credit Suisse.

Starbucks rose 2.9 percent to $51.84. The Verismo machine will make espresso-based beverages and brewed coffee. Starbucks will advertise and sell the machine and single-cup pods through a strategic relationship with closely held Krueger GmbH. Green Mountain Coffee Roasters Inc. tumbled 16 percent to $52.59.

Sprint Nextel Corp. surged 6.9 percent to $2.78. The request by regulators for Verizon Wireless and cable operators led by Comcast Corp. to provide more data on the companies’ proposed $3.6 billion airwaves deal appears to be “a partial victory” for smaller wireless operators such as Sprint, Stifel Nicolaus & Co. said in a note.

Molycorp Inc. soared 19 percent to $30.89. After losing two-thirds of its value in 10 months as demand for rare-earth metals imploded, it’s now seeking to boost shareholder returns with its biggest takeover.

The owner of the largest rare-earth deposit outside China yesterday agreed to buy Neo Material Technologies Inc. for C$1.3 billion ($1.3 billion) in cash and stock. With Neo Material, Molycorp will gain the ability to produce more types of magnets and increase sales to China, boosting profitability, Byron Capital Markets Ltd. said.

“It actually makes it a stronger story,” Jonathan Hykawy, a Toronto-based analyst at Byron Capital, said in a telephone interview. “Molycorp effectively has the pieces of the puzzle if this acquisition goes through to basically do the entire magnet industry. That’s a big, big, added slice of added cash flow that Molycorp really isn’t paying all that much for.”

Ten stocks in the Dow retreated today. Hewlett-Packard Co., the world’s biggest personal-computer maker, slumped 1.9 percent to $24.18. The shares had the biggest decline in the 30-stock index, after rallying for two straight days.

Texas Instruments Inc. lost 1 percent to $32.27. The largest maker of analog semiconductors reduced its first-quarter sales and profit forecasts, citing lower demand for products that let wireless devices connect and run applications.

Pall Corp. fell 3.1 percent, the most in the S&P 500, to $59.30. The supplier of filters for drugmakers and refineries was cut to neutral by Wedbush Securities, citing softness in markets including China.

Dynegy Inc. slumped 36 percent, the most in the Russell 2000 Index, to 76 cents. The independent power producer’s transfer of coal-fired power plants from a unit it later put into bankruptcy was fraudulent and harmed creditors, a court- ordered investigation found.

 

Have a wonderful weekend everyone.

 

Be magnificent!

The only way to achieve consciousness is by concentrating on the physical, the mental, and the spiritual.

Concentration on the powers of the spirit to discover unity in diversity is called consciousness.

All that draws on unity is moral; all that draws on diversity is immoral.

Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

Say yes to life even though you know

it may devour you.

-Stephen Larsen, 1970-2009

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: Full moon tonight!  Look north and you may be able to see the aurora borealis and the northern lights.  There is a solar storm that is going to occur tonight.

It’s International Women’s Day.

March 8, 1913: Income tax begins for the first time in the US.

March 8, 1917: Russian Revolution begins…

March 8, 1983: President Ronald Reagan calls USSR an “evil empire.”

 

photos of the day

March 8, 2012

Hindu priest Babulal jumps out of a fire to signify the burning of the demoness Holika during a ritual to mark the first day of the Holi spring festival at village Phalen, India. Holi in Phalen starts on the first day of the full moon where a Hindu mythological story will be re-enacted to symbolize the victory of good over evil.

Adnan Abidi/Reuters

Secretary of State Hillary Rodham Clinton (r.) and first lady Michelle Obama present the 2012 International Women of Courage Award to Safak Pavey of Turkey on the 101st Anniversary of International Women’s Day at the State Department in Washington. Pavey, the first disabled woman elected to the Turkish Parliament, is being recognized for her work championing the rights of vulnerable populations.

Market Closes for March 8, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12907.94	+70.61
		+0.55%
S&P 500	1365.91	+13.28
		+0.98%
NASDAQ	2970.42	+34.73
		+1.18%
TSX	12461.93	+111.77
		+0.91%

International Markets

Market Index	Close	Change
NIKKEI	9768.96	+192.90
		+2.01%
HANG SENG	20900.73	+272.95
		+1.32%
SENSEX	17145.52	-27.77
		-0.16%
FTSE 100	5859.73	+68.32
		+1.18%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.009	1.966
CND. 30 Year Bond	2.595	2.570
U.S. 10 Year Bond	2.0156	1.9721
U.S. 30 Year Bond	3.1761	3.1193

Currencies

BOC Close	Today	Previous
Canadian $	1.00972	0.99782
US $	0.99038	1.00219
Euro Rate 1 Euro=		Inverse
Canadian $	1.31482	0.76056
US $	1.327220	0.75345

Commodities

Gold	Close	Previous
London Gold Fix	1400.10	1685.80
Oil	Close	Previous
WTI Crude Future	106.76	106.21

Market Commentary:

Canada

By Matt Walcoff

March 8 (Bloomberg) — Canadian stocks rose the most in two weeks as commodities gained with the euro and banks advanced on speculation Greece will complete a debt swap.

Royal Bank of Canada, the country’s largest lender by assets, advanced 2.3 percent. Suncor Energy Inc., the country’s largest oil and gas producer, increased 1.6 percent as crude oil gained. Goldcorp Inc., the world’s second-biggest gold producer by market value, rallied 1.1 percent as the U.S. dollar dropped the most intraday against the euro since Jan 17.

The S&P/TSX Composite Index gained 111.77 points, or 0.9 percent, to 12,461.93.

“The market has really figured it out,” Arthur Salzer, chief executive officer of Northland Wealth Management in Toronto, said in a telephone interview. The firm oversees about

C$200 million ($200 million). “The banks are in shape for this large swap. They have to go along with it.”

After closing at an almost six-month high on Feb. 28, the index fell 3.1 percent through yesterday as raw-materials and energy companies dropped on concern Greece might not get enough bondholders to participate in the debt exchange. The industries make up 47 percent of Canadian stocks by market value.

Holders of about 85 percent of the Greek bonds eligible for the swap agreed to take part, according to a banking official in Athens who declined to be identified. The country had set a minimum of 75 percent participation. The deal would reduce Greece’s outstanding privately held debt by 53.5 percent.                       4

Banks in the S&P/TSX gained the most since Jan 23. Royal Bank advanced 2.3 percent to C$56.93. Toronto-Dominion Bank, its biggest domestic rival, rose 1.7 percent to C$81.70.

Regional lender Canadian Western Bank rallied after Sumit Malhotra, an analyst at Macquarie Group Ltd., boosted his rating on the shares to outperform from neutral. An outperform rating means Macquarie expects the stock to return at least 5 percentage points more than its benchmark over the next 12 months. The company’s net interest margin has probably bottomed, Malhotra wrote in a note to clients.

The shares climbed 2.8 percent to C$29.09.

Crude oil advanced on the New York Mercantile Exchange after Barclays Plc said international sanctions have reduced Iranian oil shipments by 300,000 to 400,000 barrels a day.

Suncor increased 1.6 percent to C$34.27. Cenovus Energy Inc., Canada’s fifth-largest energy company, climbed 3.4 percent to C$37.89.

PetroBakken Energy Ltd., a western Canadian oil and gas producer, rose 6.3 percent to C$17.43 to extend its two-day surge to 16 percent. At least five analysts boosted their price forecasts on the shares today, a day after the company reported fourth-quarter cash flow that beat the average analyst estimate in a Bloomberg survey by 15 percent. Petrobank Energy & Resources Ltd., which owns a majority stake in PetroBakken, jumped 8 percent to C$16.60.

Oil and gas company NAL Energy Corp. rallied 5.1 percent to

C$7.63 after Travis Wood, an analyst at Toronto-Dominion Bank, raised his rating on the shares to buy from hold. In a note to clients, Wood said the company is cheaper than its peers based on its price, debt and forecast cash flow. NAL Energy had declined six straight days through yesterday, its third streak of that length this year.

Gold futures gained the most in two weeks on the Comex in New York. Goldcorp advanced 1.1 percent to C$47.12. Yamana Gold Inc., Canada’s third-largest company in the industry by market value, increased 2.6 percent to C$16.98. Dundee Precious Metals Inc., which operates in Bulgaria, Armenia and Namibia, climbed

5.7 percent to C$10.02.

Base-metals producers rose after Germany reported a 1.6 percent increase in industrial production for January, beating the median economist forecast of 1.1 percent growth.

First Quantum Minerals Ltd., Canada’s second-largest publicly traded copper producer, climbed 2 percent to C$20.55 after plunging 14 percent in the previous four days. Coal and base-metals company Sherritt International Corp. surged 7.5 percent to C$5.88.

HudBay Minerals Inc., which mines copper, zinc and precious metals, advanced 4.9 percent to C$11.67 after reporting quarterly earnings that beat the average analyst estimate in a Bloomberg survey by 40 percent, excluding certain items.

US

By Rita Nazareth

March 8 (Bloomberg) — U.S. stocks rallied, giving the Standard & Poor’s 500 Index its biggest two-day advance of the year, as Greece moved closer to completing its debt swap.

Banks had the biggest increase in the S&P 500 among 24 groups. Wells Fargo & Co. and JPMorgan Chase & Co. rose at least

1.2 percent. Alcoa Inc. and Caterpillar Inc. added more than 1.8 percent to pace gains among the biggest companies. Coach Inc., the largest U.S. luxury handbag maker, climbed 4.6 percent after saying its business continues to be “strong” in China.

McDonald’s Corp. lost 3.2 percent as sales trailed estimates.

The S&P 500 rose 1 percent to 1,365.91 at 4 p.m. New York time, adding 1.7 percent in two days. The Dow Jones Industrial Average rose 70.61 points, or 0.6 percent, to 12,907.94. The Russell 2000 Index of small companies gained 1.3 percent to 806.34. About 6.1 billion shares changed hands on U.S. exchanges today, or 8.8 percent below the three-month average.

“Greece has no choice and the bondholders have no choice,” said Stanley Nabi, New York-based vice chairman of Silvercrest Asset Management Group, which oversees $10.5 billion. “They’re both in the mud. The swap will go through.

That will cause a moderate sigh of relief in the market. How long it will extend? That’s the big question mark.”

Stocks gained as Greece’s government got about 85 percent of bondholders to tender their holdings of the country’s debt for new securities in the biggest restructuring in history. A final result will be released tomorrow at 8 a.m. in Athens, a government official said. Finance Minister Evangelos Venizelos will hold a press conference at 1 p.m. Athens time.

With Greece again the focus of the euro-area debt crisis now in its third year, the goal of the exchange is to reduce the

206 billion euros of privately held Greek debt by 53.5 percent.

Together with a 130 billion-euro second Greek aid package, the writedown is a key element in European leaders’ efforts to turn the tide against the crisis.

“They’ve bought themselves some time,” Alan Brown, the London-based group chief investment officer at Schroders Plc, said in a telephone interview. His firm oversees $283.9 billion.

“Reducing Greek debt is all well and good, but it doesn’t do anything to restore Greece’s competitiveness. This problem is likely to resurface and the question is when.”

Today’s rally in stocks extended the S&P 500’s gain in 2012 to 8.6 percent. The index has risen amid better-than-estimated economic data and expectations Europe would tame its debt crisis. Technology and financial shares had the biggest gains among 10 groups this year, adding at least 13 percent.

The KBW Bank Index advanced 1.4 percent today as 21 of its

24 stocks climbed. Wells Fargo climbed 3.3 percent to $31.40.

JPMorgan increased 1.2 percent to $40.44.

Investors also watched economic data as the number of Americans filing claims for jobless benefits rose to 362,000 last week, a level consistent with an improving labor market.

The Labor Department will report monthly jobs data tomorrow, which economists forecast will show an increase of 225,000 private jobs and total non-farm payrolls growth of 210,000.

The Morgan Stanley Cyclical Index of companies most-tied to economic growth added 1.8 percent. The Dow Jones Transportation Average rallied 1.4 percent. A measure of homebuilders in S&P indexes increased 3.6 percent. Commodity and industrial shares had the biggest gains in the S&P 500 among 10 groups. Alcoa, the largest U.S. aluminum producer, rallied 2.3 percent to $9.77.

Caterpillar, the world’s biggest maker of construction and mining-equipment, rose 1.9 percent to $110.28.

Coach advanced 4.6 percent to $76.79. Analysts’ estimates are likely to increase because of a boost in revenue and gross margins, Stifel Nicolaus & Co. said.

Monster Worldwide Inc. surged 3.4 percent to $8.61. The online recruiting service that has lost almost 90 percent of its value is poised to extract a record takeover premium for investors. Chief Executive Officer Salvatore Iannuzzi said last week he is weighing options to boost the company’s shares after Monster traded as low as 0.67 times the value of its net assets.

competitor, said Matrix Asset Advisors Inc.

“It should wrest a high premium,” said David Katz, chief investment officer at New York-based Matrix Asset Advisors Inc., which oversees about $935 million and owned Monster shares as of February. Acquirers would still be “getting it at a steal.”

McDonald’s lost 3.2 percent, the most in the Dow, to $96.96. The restaurant chain said sales at stores open at least

13 months rose 7.5 percent worldwide last month, trailing analysts’ estimates for the first time since August, as consumers cut spending in Europe.

American International Group Inc. slumped 3.9 percent to $28.31. The U.S. Treasury Department is selling $6 billion in shares of AIG, the insurer rescued in 2008 after it suffered losses tied to wrong-way bets on the mortgage market.

Exxon Mobil Corp. slid 1.2 percent to $84.83. The company expects its natural-gas and oil production to drop 3 percent in 2012. Exxon’s forecast is based on an average price of $111 a barrel for Brent crude, it said in a slide presentation at an investor meeting today.

Dendreon Corp. tumbled 7 percent to $10.12. The shares had the biggest decline in the Russell 1000 Index. The maker of the prostate cancer drug Provenge slumped after Johnson & Johnson said its rival product, Zytiga, performed better than a placebo in a trial.

Apple Inc. gained 2.1 percent to $541.99. The shares closed almost unchanged yesterday after the company unveiled a new version of its iPad tablet computer. Apple took over from Wells Fargo as the stock most often in the top 10 holdings of the 50 largest mutual funds in the fourth quarter, and widened its lead among the biggest hedge funds, Citigroup Inc. said.

Apple, based in Cupertino, California, was a top-10 holding for 18 of the 50 largest U.S. mutual funds in the period, Tobias Levkovich, Citigroup’s chief U.S. equity strategist, wrote in a note yesterday. Wells Fargo, based in San Francisco, and Microsoft Corp. are in the top 10 holdings of 17 of the mutual funds. Apple gained 6.2 percent in the quarter, while the S&P

500 rallied 11 percent. Wells Fargo rose 14 percent and Microsoft added 4.3 percent.

“The 30 most held stocks for hedge funds shifted more heavily” to technology, Levkovich said in the report. “Apple remains the most-held stock for both growth and value hedge funds as well as for growth mutual funds while Wells Fargo remains the most owned for value oriented mutual funds.”

The decreasing number of industry groups in “uptrends”

may foreshadow a retreat by the U.S. stock market, according to Craig W. Johnson, a technical market strategist at Piper Jaffray in Minneapolis.

The amount of industries trending higher increased from October through last month to about 95 percent before slipping last week, Johnson said, citing an indicator watched by analysts who use charts to predict market direction. He said the high proportion signaled the market was due for a retreat.

“This advance is getting tired,” Johnson said in a phone interview yesterday. “As the market gets to higher and higher levels, you start to see less and less participation,” he said.

“100 percent of the stocks up, 100 percent of the groups up”

all the time isn’t possible.

 

Have a wonderful evening everyone.

 

Be magnificent!

What we are about to undertake is an expedition together, a journey of discovery

into the most secret recesses of our consciousness.

And for such an adventure we must travel light, we cannot burden ourselves

with opinions, prejudices, conclusions that is, with all the baggage that we have collected

over the past two thousand years or more.  Forget everything you know about yourself;

forget everything that you have thought about yourself;

we are going to set off as if we know nothing.

-Krishnamurti, 1895-1986

As ever,

 

Carolann

Each instant is a place we’ve never been.

-Mark Strand, 1934-

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

Senior Vice-President &

Senior Investment Advisor