Category: Events

Dear Friends,

Tangents:

Today is Fiesta de San Fermin in Pamplona.   Think A Farewell to Arms. 

Stanzas for a Sierra Morning

               By Robert Hass 

Looking for wildflowers, the white yarrow

With its deep roots for this dry place

And fireweed which likes disturbed ground.

 

There were lots of them, bright white yarrow

And the fireweed w was the brilliant magenta

Some women put on their lips for summer evenings.

 

The water of the creek ran clear over creekstones

And a pair of dove-white plovers fished the rills

A sandbar made in one of the turnings of the creek.

 

You couldn’t have bought the sky’s blue.

Not in the silk markets of Samarkand.  Not

In any market between Xian and Venice.

 

Which doesn’t mean that it doesn’t exist.

Isn’t that, after all, what a stanza is for.

So that after a night of listening, unwillingly.

 

To yourself think, you can walk, slightly hungover,

Through some morning market, sipping tea,

An eye out for that scrap of immaculate azure.

PHOTOS OF THE DAYThe icon of San Fermín is paraded through the streets on the saint’s day at the San Fermín festival in Pamplona, northern Spain, Thursday.Vincent West/Reuters

An employee of Japan’s internet commerce and mobile games provider DeNA Co, rides on the company’s Robot Shuttle, a driver-less, self driving bus, during its demonstration in Tokyo, Thursday. Toru Hanai/Reuters

Market Closes for July 7, 2016

Market Index	Close	Change
Dow Jones	17895.88	-22.74 -0.13%
		S&P 500	2097.90	-1.83 -0.09%
NASDAQ	4876.809			+17.647 +0.36%
		TSX	14134.46	-96.60
-0.68%

International Markets

Market Index	Close	Change
NIKKEI	15276.24	-102.75
		-0.67%
HANG SENG	20706.92	+211.63
		+1.03%
SENSEX	27201.49	+34.62
		+0.13%
FTSE 100	6433.79	+70.20
		+1.09%

Bonds

Bonds	% Yield	Previous  % Yield
10 Year Bond	0.978	0.978
30 Year Bond	1.556	1.557
U.S.    10 Year Bond	1.3850	1.3716
U.S. 30 Year Bond	2.1348	2.1395

Currencies

BOC Close	Today	Previous
Canadian $	0.76882	0.77135
US $	1.30069	1.2964
Euro Rate 1 Euro=		Inverse
Canadian $	1.43863	0.69511
US $	1.10598	0.90417

Commodities

Gold	Close	Previous
London Gold Fix	1356.70	1366.25
Oil	Close	Previous
WTI Crude Future	45.14	47.43

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks fell the most in almost two weeks as energy producers joined a decline in gold miners, erasing gains with oil after U.S. inventories dropped less than expected.

     The S&P/TSX Composite Index fell 0.7 percent to 14,134.46 at 4 p.m. in Toronto. The benchmark trails New Zealand as the world’s top-performing developed market in 2016, according to data compiled by Bloomberg, with a gain of 8.6 percent. Trading volume was 6 percent lower than the 30-day average.

     Raw-materials producers tumbled 2.3 percent as a group, snapping a five-day rally to retreat from the highest level in almost two years. Gold slipped 0.4 percent in New York after climbing to the highest in two years Wednesday. Barrick Gold Corp. dropped 3.2 percent, the steepest in six weeks.

     Canadian Natural Resources Ltd. and Suncor Energy Inc. retreated at least 1 percent as energy producers tumbled 1.3 percent. Crude fell 4.8 percent to the lowest level in almost two months as government data showed U.S. supplies declined by 2.2 million barrels last week, short of analysts’ expectations for a 2.5 million barrel drop.

     Paramount Resources Ltd. jumped 8.5 percent to the highest level since November after agreeing to sell shale assets in Alberta’s Montney region to Seven Generations Energy Ltd. in a C$1.9 billion deal in cash and debt. Seven Generations added 7.1 percent to a record and a fourth day of gains.

     Fairfax Financial Holdings Ltd. slipped 2.1 percent after agreeing to buy Zurich Insurance Co.’s South African and Botswana operations. Terms were not disclosed. The deal is expected to close by the end of the fourth quarter of 2016.

     Canadian equities have swung between gains and losses since the Brexit vote two weeks ago as investors sought havens from the market volatility. Raw-materials producers remain the top- performing industry in Canada this year with a 57 percent increase, the best such performance for the group in at least 30 years, according to data compiled by Bloomberg. Energy stocks have rallied 17 percent.

     Health-care shares are down nearly 70 percent in 2016, the worst in the S&P/TSX, dragged lower Valeant Pharmaceuticals International Inc.’s 78 percent plunge. Valeant advanced 2.7 percent Thursday for a second day of gains and a three-week high. Shares jumped Wednesday after Walgreens Boots Alliance Inc. said in its quarterly earnings call it’s satisfied with its partnership with the drugmaker.

US

By Anna-Louise Jackson and Bailey Lipschultz

     (Bloomberg) — U.S. stocks slipped as a crude-oil selloff dragged energy shares lower, while investors remained on edge before a monthly report that may reveal whether the labor market is maintaining momentum amid a gloomy outlook for global growth.

     Equities erased an early advance Thursday after oil wiped out gains, with the commodity tumbling after a weekly report showed stockpiles fell less than expected. Energy producers reversed a 1 percent climb while Chevron Corp. lost 1.5 percent. Phone companies and utilities slumped at least 1.6 percent, the biggest losers on the day. Despite all the day’s fluctuations, stocks finished little changed amid anticipation of the key jobs data.

     The S&P 500 Indexretreated 0.1 percent to 2,097.90 at 4 p.m. in New York, after lurching between gains and losses of as much as 0.5 percent in either direction. The Dow Jones Industrial Average fell 22.74 points, or 0.1 percent, to 17,895.88, after erasing a 66-point climb. The Nasdaq Composite Index rose 0.4 percent, supported by gains in Intel Corp, Apple Inc. and Costco Wholesale Corp. About 6.7 billion shares traded hands on U.S. exchanges, 7 percent below the three-month average.

     “The markets are gyrating, but I think this is just the post-Brexit environment and we’re looking for where the new equilibrium levels are and we haven’t found them yet,” said Kevin Caron, a Florham Park, New Jersey-based market strategist and portfolio manager who helps oversee $180 billion at Stifel Nicolaus & Co. “This is a theme that may stay with us for a while. Stock markets aren’t cheap, by definition the bond market isn’t cheap, and globally the economy is struggling.”

     Investors are keen to get a look at the government’s latest reading on employment growth to see if May’s weak report was an anomaly. The addition of just 38,000 jobs that month abruptly pushed out investors’ expectations for future interest-rate increases, and minutes released yesterday from the Federal Reserve’s June meeting showed policy makers want more proof the economy hasn’t lost momentum after the disappointing data.

     A report yesterday showed stronger-than-predicted expansion in services industries, boosting optimism the U.S. economy can weather any fallout from the U.K.’s decision to leave the European Union.

     Economists surveyed by Bloomberg expect a recovery, with a 180,000 increase in jobs last month. A report today showed companies added 172,000 workers to private payrolls in June while another measure showed filings for unemployment benefits unexpectedly declined last week to the lowest level since mid- April, signaling labor market stability amid a shaky global economy.

     The S&P 500 has rebounded almost 5 percent since June 27, erasing the majority of a selloff that followed the Brexit vote. The index rallied last week by the most since November on optimism that central banks will loosen monetary policy to counter aftershocks from the U.K.’s referendum result. The CBOE Volatility Index fell 1.3 percent Thursday to 14.76, an almost one-month low.

     “The remarkable snap-back in the market is largely a function of central banks around the world that are not going to raise rates for a good long time so that makes risk assets more attractive,” said Katie Nixon, chief investment officer of wealth management at Northern Trust Corp. “The risk-on rally is off to the races with the central banks either sitting on their hands or contemplating further action.”

     Traders are pricing in almost no chance for higher borrowing costs this month, compared to a 55 percent probability a month ago, just before the May jobs report. Odds for a move are now 42 percent or less until at least the end of 2017. Investors and policy makers will continue to scrutinize data to assess the vitality of growth as another earnings season approaches.

     Alcoa Inc. unofficially launches the second-quarter reporting period next week, with analysts predicting a profit decline of 5.4 percent compared to a year ago for companies in the S&P 500. That would mark a fifth-straight quarterly drop, the longest streak since 2009.

     “There is that balancing act for the Fed in that they are quite right to be vigilant and observant of the U.K.’s position, but at the same time the direct impact on the U.S. economy is probably going to be quite small,” said Daniel Murray, head of research at EFG Asset Management in London. “Markets are looking to nonfarm payrolls tomorrow as the first solid data point following the last Fed meeting to give guidance.”                       

     In Thursday’s trading, five of the S&P 500’s 10 main industries declined, with utilities dropping 1.8 percent from an all-time high. Phone companies slumped 1.6 percent, falling for a third day after reaching the highest level since 2001. Energy producers lost 1.1 percent as West Texas Intermediate crude futures slid 4.8 percent. Consumer discretionary, raw-material, technology and industrial shares rose at least 0.2 percent.

     Utilities suffered the steepest drop in seven weeks, with nine of the 28 members in the S&P 500’s group falling at least 2 percent. Exelon Corp. and Duke Energy Corp. lost more than 2.2 percent.

     Chevron and Exxon Mobil Corp. posted their worst declines since the day of the Brexit results two weeks ago to send the energy group lower. Crude supplies fell 2.22 million barrels in the week ended July 1, Energy Information Administration data show. Analysts surveyed by Bloomberg had forecast the EIA would report a 2.5 million decline.

     After yesterday’s rally led by biotechnology companies, health-care stocks slipped 0.2 percent as managed-care companies weighed. Humana Inc. dropped 9.6 percent, its biggest slide since 2012. People familiar with the matter said Aetna Inc. is preparing to meet with top regulators as it seeks to win antitrust approval for its $37 billion takeover of Humana. Aetna lost 4 percent. Anthem Inc. fell 2 percent after Connecticut’s attorney general expressed concern with its proposed merger with Cigna Inc.

     Viacom Inc. led media companies higher, rising 3.9 percent to also help lift the consumer discretionary group. Billionaire John Malone said the shares are undervalued because of the turmoil over the battle for control for the company. Time Warner Inc. and Comcast Corp. gained more than 1.7 percent.

     Semiconductors rallied, with Micron Technology Inc. gaining 4.1 percent and Skyworks Solutions Inc. increasing 2.9 percent.Analysts cited positive trends for flash-memory chips as a reason for hard-drive maker Western Digital Corp.’s better-than- forecast preliminary quarterly results.

     Among shares moving on corporate news, WhiteWave Foods Co. surged as much as 20 percent after Danone agreed to buy the maker of Silk soy milk for about $10 billion.

     PepsiCo. Inc. rose 1.5 percent to a record after its quarterly profit beat analysts’ estimates and the company boosted its full-year forecast, helped by rising sales of snacks and soft drinks in North America.
 

Have a wonderful evening everyone.

 

Be magnificent!

 

Between me and the smallest animal,

the difference is only in manifestation,

but as a  principle he is the same as I am,

he is my brother, he has the same soul as I have.

Swami Vivekananda

 

As ever,

 

Carolann

 

Man’s mind, once stretched by a new idea,

never regains its original dimensions.

       -Oliver Wendell Holmes, 1809-1894.

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

SECRET 

In summer the park, for an hour or so before night,

is at its greenest, a whole implicit proposition

of green leaves, a triumph of leaves enfolding me

that day in a green intimacy so trustworthy I told

them my secret.  “It’s my birthday,” I said out loud

before turning away to cross the avenue.

                         –Dorothea Tanning, 1910-2012

On this day in:

1854, the Republican party was formed in the US.

1907, the artist Frida Kahlo, was born.

1923, the U.S.S.R. is formed.

1935, the Dalai Lama was born.

 PHOTOS OF THE DAYRevelers hold up traditional red scarves during the start of the San Fermín festival in Pamplona, Spain, Wednesday. Eloy Alonso/Reuters

Kennel Master Oliver Cruz tends to celebrity dogs outside the kennel aboard the ocean liner Queen Mary 2, docked at her home port at the Brooklyn Cruise Terminal in New York, Wednesday. The Cunard ship underwent $132-million of renovations that includes, for its four-legged passengers, additional kennels, more play space and an owner’s lounge. Richard Drew/AP

Market Closes for July 6, 2016

Market Index	Close	Change
Dow Jones	17918.62	+78.00 +0.44%
		S&P 500	2099.71	+11.16 +0.53%
NASDAQ	4859.160			+36.259 +0.75%
		TSX	14224.28	+4.71
+0.03%

International Markets

Market Index	Close	Change
NIKKEI	15378.99	-290.34
		-1.85%
HANG SENG	20495.29	-255.43
		-1.23%
SENSEX	27166.87	-111.89
		-0.41%
FTSE 100	6463.59	-81.78
		-1.25%

Bonds

Bonds	% Yield	Previous % Yield
10 Year Bond	0.978	0.997
30 Year Bond	1.557	1.601
U.S.    10 Year Bond	1.3716	1.3750
U.S. 30 Year Bond	2.1395	2.1545

Currencies

BOC Close	Today	Previous
Canadian $	0.77135	0.77013
US $	1.2964	1.2984
Euro Rate 1 Euro=		Inverse
Canadian $	1.43857	0.69513
US $	1.10975	0.90111

Commodities

Gold	Close	Previous
London Gold Fix	1366.25	1350.75
Oil	Close	Previous
WTI Crude Future	47.43	46.60

Market Commentary:

Number of the Day

-0.005%

The 20-year Japanese government bond yield, which was above 1% as recently as last December, fell as low as minus 0.005% on Wednesday, the first time it’s fallen below zero.

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks erased losses to end little changed, as gains by gold producers and health-care shares offset declines in banks after a report today showed the nation’s trade deficit widened more than expected.

     The S&P/TSX Composite Index rose 0.1 percent to 14,231.06 at 4 p.m. in Toronto, after earlier falling as much as 1 percent. The benchmark trails New Zealand as the world’s top- performing developed market in 2016, according to data compiled by Bloomberg. 

     Financial services and consumer discretionary shares were the biggest drags on the S&P/TSX on Wednesday, as investors assessed data that showed the trade deficit in Canada held near a record high in May as exports of machinery and metals declined, worse than economists’ forecasts. The deficit follows an April figure revised higher to a record C$3.32 billion, according to Statistics Canada.

     Toronto-Dominion Bank slid 2.1 percent, while auto-parts manufacturer Magna International Inc. lost 0.8 percent.

     The S&P/TSX fluctuated after minutes from the Federal Reserve’s last meeting showed officials left interest rates on hold in June due to heightened uncertainties in the U.S. jobs market threatening their outlook.

     At their June 14-15 session, officials lowered their expectations for the number of times they’ll increase rates this year, indicating they believed the economy’s potential growth rate had dropped meaningfully, even before the U.K. referendum on June 23. Traders now see a 2 percent probability of an interest rate hike in September, according to data compiled by Bloomberg.

     Canadian equities have swung between gains and losses since the Brexit vote in June as investors sought havens from the market volatility. Canadian government bond yields tumbled for a fifth day, touching the lowest level since February. Ten-year government bonds in the U.S., Australia, Japan, Germany, France and the U.K. sank to records. Gold jumped to the highest in two years.

     Raw-materials producers increased 1.4 percent as gold prices climbed. Barrick Gold Corp. and Yamana Gold Inc. rose more than 2.7 percent.

     Valeant Pharmaceuticals International Inc. surged 15 percent, the most since April, after Walgreens Boots Alliance Inc. said in a third-quarter earnings call it was satisfied with its relationship with Valeant and willing to help Valeant be more successful.

     Centerra Gold Inc. sank 8 percent, the most since May, after agreeing to buy Thompson Creek Metals Co. in a stock deal valued at $1.1 billion. The move will help Centerra expand in North America and reduce its dependence on Central Asia.

     Torstar Corp., publisher of Canada’s biggest daily newspaper, retreated 4.8 percent for a second day of losses. David Holland, president and chief executive officer of Torstar, will step down this fall. The company hasn’t named a replacement.

US

By Anna-Louise Jackson and Bailey Lipschultz

     (Bloomberg) — U.S. stocks advanced, led by gains among drug companies, as cautious sentiment eased amid speculation the American economy can weather the impact of the U.K.’s decision to leave the European Union.

     Equities shook off early weakness as biotechnology shares rallied to lift the health-care group to the highest this year. Retailers rose after data showed the fastest expansion in services industries in seven months. A Goldman Sachs Group Inc.basket of most shorted shares surged for the fifth time in six days, rising 9.2 percent over the period. Phone companies fell for a second day after reaching levels not seen since 2001.

     The S&P 500 Indexincreased 0.5 percent to 2,099.73 at 4 p.m. in New York, after erasing a 0.7 percent drop and reversing most of Tuesday’s slide. The gauge halted declines today near its average price during the past 50 days, a key level watched by technical analysts. The Dow Jones Industrial Average added 78 points, or 0.4 percent, to 17,918.62, wiping out a 127-point drop. The Nasdaq Composite Index rose 0.8 percent, supported by the biotech rally.

     “You’re looking at a market that’s lacking direction right now,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee. “The primary driver for concern is what it always is — a slow growth backdrop. We’re in a no-man’s land before the next Fed meeting and the kick-off of earnings next week.”

     American equities overcame a retreat in global markets, which fell as knock-on effects of Britain’s vote start to materialize. Anxiety has increased over the potential for instability to spread after at least five asset managers froze withdrawals from U.K. real-estate funds following a flurry of redemptions, while data on Wednesday showed German factory orders were unchanged in May, disappointing forecasters who had called for an increase.

     “When we think about Brexit, we really think that it’s much more of a local U.K. issue and that it becomes much less important even as you start geographically expanding, even if you go to the Euro area, to the U.S.,” Gabriela Santos, a global strategist with JPMorgan Chase & Co. said in an interview on Bloomberg TV. “It doesn’t shift our allocations, it doesn’t shift our view of U.S and European investing, so we haven’t materially changed in the aftermath of Brexit.”

     Before yesterday’s decline, the S&P 500 capped its strongest weekly rise since November, boosted by assurances that central banks are prepared to loosen monetary policy to limit the fallout from Brexit. The benchmark is trading at 16.6 times estimated earnings, a higher valuation than the MSCI All-Country World Index and above its own three-year average.

     The main U.S. equity index has whipsawed in the past month, twice climbing within 1 percent of a record in June, including the day before the U.K. referendum’s result. It then lost 5.3 percent in its worst two-session rout in 10 months before a four-day rally nearly erased those declines. The S&P 500 closed Wednesday 0.6 percent below its level before the Brexit selloff.

     The CBOE Volatility Index fell 4 percent Wednesday to 14.96, after eliminating an early 9.4 percent surge. The measure of market turbulence known as the VIX on Friday posted its biggest-ever weekly decline, down 43 percent. About 7.4 billion shares traded hands today on U.S. exchanges, 2 percent above the three-month average.

     Minutes today from the Federal Reserve’s June meeting showed heightened uncertainty as officials were concerned by a hiring slowdown and thought it prudent to wait for the Brexit vote before a rate move. While policy makers agreed they shouldn’t overreact to one or two job reports, the implications of recent data were viewed as “uncertain,” the minutes showed. Most officials judged that they needed more information on employment, production and spending.

     At their session last month, several Fed officials lowered their expectations for the number of times they’ll increase rates this year, though the median projection held at two. They also reduced their estimate for the longer-run Fed funds rate, indicating they believed the economy’s potential growth rate had dropped meaningfully, even before the U.K. referendum on June 23.

     “The main takeaway from the minutes is the uncertainty in the mind of the Fed has increased, which we can all understand given the weak May jobs data and recent U.K. referendum,” said Jon Adams, portfolio manager at BMO Global Asset Management in Chicago, where he helps oversee $217 billion. “This is another sign that the Fed’s not going to do too much to upset the apple cart. They’re looking for any excuse not to raise rates at this point.”

     Traders have pushed back bets for the next Fed interest- rate increase, with odds for a move at less than 42 percent until at least 2018. As investors and policy makers scrutinize data to assess the sturdiness of growth, a report today showed service providers expanded in June on stronger orders and sales that signal a healthy U.S. economy.

     Another earnings season will also soon vie for investors’ attention, with Alcoa Inc. unofficially launching the second- quarter reporting period next week. Analysts predict a profit decline of 5.4 percent compared to a year ago for companies in the S&P 500, which would mark a fifth-straight quarterly drop, the longest streak since 2009.

     In Wednesday’s trading, eight of the S&P 500’s 10 main industries rose, with health-care adding 1.2 percent, while consumer discretionary, energy and technology shares gained at least 0.5 percent. Phone companies fell 0.4 percent, paring a drop of as much as 1.9 percent.

     Celegene Corp. and Vertex Pharmaceuticals Inc. advanced more than 3.6 percent, among the strongest performers in health- care. Vertex announced a $40 million dollar upfront investment with Moderna Therapeutics Inc. for a cystic fibrosis treatment. The Nasdaq Biotechnology Index rose 2.3 percent to a three-week high. In a note today, Leerink Partners LLC forecast biotechs will post “strong” quarterly results. Merck & Co. increased 2 percent to an almost 11-month high, while AbbVie Inc. added 2.3 percent.

     Bolstering gains in retailers, Amazon.com Inc. rose 1.3 percent to a record amid its longest winning streak in more than two months. Home Depot Inc. climbed 1.7 percent and Bed Bath & Beyond Inc. gained 3.1 percent. Among other consumer discretionary companies, a gauge of homebuilders increased 2.1 percent to a four-week high as D.R. Horton Inc. and Toll Brothers Inc. advanced at least 2.4 percent.

     Banks in the benchmark index wiped out a 1.4 percent drop, rising 0.9 percent for the first gain in three days. Zions Bancorporation and Regions Financial Corp. added more than 2.1 percent, while SunTrust Banks Inc. increased 1.7 percent.

     Raw-materials producers edged higher after erasing a 1.1 percent slide. Martin Marietta Materials Inc. jumped 4.4 percent, the strongest in four months, to an all-time high. Newmont Mining Corp. rose 2.6 percent as gold climbed to to a two-year high.

     American Airlines and United Continental Holdings Inc. slumped at least 2 percent, trimming earlier declines of more than 6 percent, after Credit Suisse Group AG cut its ratings on the carriers. The Bloomberg U.S. Airlines Index has tumbled 24 percent in 2016, putting it on track for the largest annual decline since 2011.

     Among other shares moving on corporate news, Netflix Inc. lost 3.4 percent after Jefferies Group LLC downgraded the shares to underperform, similar to sell, citing concerns about the trajectory of subscriber growth.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

Bees suck nectar from many different flowers, and then make honey.

One drop of honey cannot claim to come from one flower, and another drop of honey from another flower; the honey is a single consistent whole.

In the same way, all beings are one even though they are not aware of this.

The tiger and the lion, the wolf and the boar, the worm and the moth, the gnat and the mosquito, all come from the soul, and are part of the soul.

Chandogya Upanishad

 

As ever,

 

Carolann

 

I write in order to understand as much as to be understood.

                                               -Elie Wiesel, 1928-2016

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

Portfolio Manager &

Senior Vice-President 

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Daily Factoid

On this day in 1946, the bikini makes its debut.

JUPITER:

Play Video →

Following a five-year voyage, the Juno spacecraft has successfully entered into orbit around Jupiter. Over the next 20 months, astronomers will study data and photographs, hoping to discover the “recipe of solar systems” by exploring the largest planet in ours.

PHOTOS OF THE DAY

A bee carrying pollen flies to a blooming sunflower on a field near Frankfurt/Oder, eastern Germany, on Tuesday. Patrick Pleul/dpa/AP

Etixx-Quickstep rider Marcel Kittel of Germany (blue) wins Tour de France’s Stage 4, from Saumur to Limoges, on Tuesday. Jean-Paul Pelissier/Reuters

Market Closes for July 5, 2016

Market Index	Close	Change
Dow Jones	17840.62	-108.85 -0.61%
S&P 500	2088.55	-14.40 -0.68%
NASDAQ	4822.902	-39.665 -0.82%
TSX	14219.57	-39.30
		-0.28%

International Markets

Market Index	Close	Change
NIKKEI	15669.33	-106.47
		-0.67%
HANG SENG	20750.72	-308.48
		-1.46%
SENSEX	27166.87	-111.89
		-0.41%
FTSE 100	6545.37	+23.11
		+0.35%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.997	1.044
CND. 30 Year Bond	1.601	1.673
U.S.    10 Year Bond	1.3750	1.4441
U.S. 30 Year Bond	2.1545	2.2253

Currencies

BOC Close	Today	Previous
Canadian $	0.77013	0.77833
US $	1.2984	1.28479
Euro Rate 1 Euro=		Inverse
Canadian $	1.43760	0.69561
US $	1.10717	0.90321

Commodities

Gold	Close	Previous
London Gold Fix	1350.75	1350.75
Oil	Close	Previous
WTI Crude Future	46.60	48.99

Market Commentary:

Number of the Day

$1.3114

The British pound on Tuesday slumped to a 31-year-low against the dollar at $1.3114

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, snapping a four-day rally, as commodities tumbled with metals and crude on renewed concern about the strength of the global economy after the U.K.’s vote to leave the European Union.

     The S&P/TSX Composite Index lost 0.3 percent to 14,219.57 at 4 p.m. in Toronto, for the first loss in five sessions, paring declines of as much as 0.8 percent. Canadian equities joined declines in stocks around the world after Bank of England Governor Mark Carney warned there may be a “material slowing of the economy” as the risks from Britain’s decision to leave the EU have started to crystallize. Trading volume in the benchmark was about 7 percent higher than the 30-day average.

     The Canadian benchmark had rebounded 4.2 percent in the past four trading sessions after slumping the most since February in the two days after the Brexit vote. The S&P/TSX trails New Zealand as the world’s top-performing developed market in 2016, according to data compiled by Bloomberg. 

     Energy producers lost 0.7 percent as six of 10 industries in the S&P/TSX declined. Crescent Point Energy Corp. and Encana Corp. dropped at least 2.1 percent as New York crude tumbled to below $47 a barrel. There was no settlement Monday because of the U.S. holiday.

     Oil prices won’t rise much further over the next year and a half as demand slows, according to Vitol Group of Cos., the world’s largest independent oil-trading house. Brent crude will end 2016 at about $50 a barrel and rise to about $60 by the end of 2017, Vitol Chief Executive Officer Ian Taylor said in an interview with Bloomberg TV. Energy producers account for about 20 percent of the S&P/TSX by market capitalization.

     Raw-materials producers have led the charge for Canada with a 58 percent gain this year, the best year-to-date performance for the industry in at least 30 years, while energy producers are second with an 18 percent increase, according to data compiled by Bloomberg. Gold prices are on track for the biggest annual increase since 2010.

     On Tuesday, base metals producers retreated with HudBay Minerals Inc. and First Quantum Minerals Ltd. dropping at least 4.1 percent. Copper extended a retreat from a two-month high while nickel fell the most in eight weeks on the London Metal Exchange as industrial metals declined.

     Thompson Creek Metals Co. jumped 6.7 percent to the highest level in two months, after the mining company agreed to sell itself for C$175.8 million to Centerra Gold Inc. in a share deal.

US

By Anna-Louise Jackson and Bailey Lipschultz

     (Bloomberg) — Commodity producers and lenders led U.S. stocks lower, as the S&P 500 Index snapped its longest winning streak in three months, after comments from Bank of England Governor Mark Carney rekindled concerns that Britain’s exit from the European Union will further weigh on tepid global growth.

     Energy and financial shares were among the biggest losers Tuesday, with investors showing a preference for havens as equity declines and higher volatility reflected some of the anxiety seen during the two-day selloff following the Brexit vote. The BOE’s Carney warned of prospects for “a material slowing of the economy,” amid developing risks from the decision to leave the EU.

     The S&P 500fell 0.7 percent to 2,088.55 at 4 p.m. in New York, its first retreat in five sessions. The gauge dropped as much as 1.1 percent before trimming losses in the final hour of trading. The Dow Jones Industrial Average lost 108.75 points, or 0.6 percent, to 17,840.62. The Nasdaq Composite Index decreased 0.8 percent, and the Russell 2000 Index of small caps dropped 1.5 percent. About 6.9 billion shares traded hands on U.S. exchanges, 4 percent below the three-month average.

     “The factors driving the market today are fears of financial contagion coming out of European banks, the drop in oil prices and currency weakness,” said Michael Sheldon, chief investment officer of Northstar Wealth Partners, which oversees $1.1 billion in West Hartford, Connecticut. “Investors came back after the long weekend and decided that maybe the run-up in prices following Brexit may have been overdone to the upside.”

     Equities pulled back after capping on Friday their strongest weekly advance since November, spurred by assurances that central bankers are prepared to loosen monetary policy to counter fallout from the Brexit vote. Investors sense of relief tempered today amid concern over the health of the global economy, and whether efforts by policy makers will be enough to bolster growth.

     ConocoPhillips fell 4.2 percent, with West Texas Intermediate crude futures dropping 4.9 percent, while miner Freeport-McMoRan Inc. slid 7.5 percent. Banks retreated for a second session, with JPMorgan Chase & Co. and Goldman Sachs Group Inc. slumping at least 2.5 percent. Boeing Co. and United Technologies Corp. lost more than 2 percent to help drag industrials lower for the first time in five days.

     While the U.S. market was shut on Monday in observance of Independence Day, European stocks dropped, and the MSCI All- Country World Index slid on Tuesday for the first time in more than a week amid a retreat in commodities.

     The S&P 500’s four-day rebound last week nearly wiped out losses stemming from the U.K. vote. The index had climbed within 1 percent of record just before the referendum’s result, and then lost 5.3 percent in its worst two-day rout in 10 months. With Tuesday’s declines, a measure of turbulence bounced after its biggest-ever weekly drop.

     The CBOE Volatility Index rose 5.5 percent to 15.58, paring a nearly 13 percent jump, after the gauge known as the VIX tumbled 43 percent last week. It also snapped its longest stretch of declines in two months.

     “The market should not have rebounded, in our view, the way it did last week in the aftermath of Brexit,” said Phil Orlando, who helps oversee $360 billion as chief equity-market strategist at Federated Investors Inc. in New York. “What we saw in the last four days was a reversal of the normal knee-jerk reaction. The market is just saying, ‘June 23 didn’t exist, everything is back to normal and we’re just going to ignore all of the economic repercussions.’ I think that’s foolish.”                        

     Investors also face a looming earnings reporting season, which gets underway next week, with analysts predicting a decline of 5.4 percent for companies in the S&P 500. That would mark a fifth-straight quarterly drop, the longest streak since 2009. Weaker-than-forecast results in the first three months of the year from tech giants including Microsoft Corp. and Apple Inc. had a hand in halting a rally in April as the S&P 500 neared its all-time high.

     Since the Brexit vote, traders have pushed back their bets for a Federal Reserve interest-rate increase, pricing in a less than 40 percent chance of higher borrowing costs before 2018. Fed Bank of New York President William Dudley said today “it’s still really early days to understand what kind of consequences” of the referendum.

     Separately, San Francisco Fed’s John Williams said the U.K.’s decision probably won’t derail the U.S. economy, leaving the Fed scope to raise rates this year if his growth and inflation expectations are met.

     “People are concerned about global growth,” said John Plassard, a senior equity-sales trader at Mirabaud Securities in Geneva, which oversees 34 billion Swiss francs ($35 billion) in assets. “We have the Brexit problem, the general growth and U.S. isn’t in an excellent shape either.”

     Eight of the S&P 500’s 10 main industries fell, led by a 1.9 percent slump for energy stocks and declines of at least 1.5 percent for financials and raw materials. Investors sought refuge in groups considered defensive in nature, as utilities and consumer staples rose at least 0.5 percent.

     Energy companies snapped a four-day rally, slumping as oil prices fell on signs of ample stockpiles. Southwestern Energy Co. tumbled 10 percent, while Chesapeake Energy Corp. and Murphy Oil Corp. slipped at least 6.3 percent. Among raw-materials shares, Alcoa Inc. dropped 3 percent and Dow Chemical Co. declined 1.6 percent.

     Financials stocks sank for a second straight session, falling 1.5 percent. Banks led the selloff, as the KBW Bank Index tumbled 2.9 percent, with declines of at least 4.1 percent for Zions Bancorporation and SVB Financial Group. CBRE Group Inc. fell 5.4 percent to the lowest level since February, bringing its three-day decline to 7.4 percent.

     Automakers and parts suppliers tumbled after their strongest four days since March. Harley-Davidson Inc. plunged 11 percent on skepticism over takeover rumors that sent the shares on Friday soaring 20 percent, the most in seven years. Ford Motor Co. and General Motors Co. declined more than 2.4 percent Tuesday.

     Consumer staples stocks gained 0.5 percent to the highest ever, for the group’s fourth rally in five sessions. Clorox Co. and Dr. Pepper Snapple Group Inc. rose more than 1.5 percent to all-time highs. Kroger Co. added 2.1 percent and Altria Group Inc. rallied for a third consecutive session to a record, increasing 0.9 percent. Procter & Gamble Co. extended its longest winning streak since March, rising 0.8 percent.

     Utilities rose 0.7 percent to an all-time high, as Consolidated Edison Inc., WEC Energy Group Inc. and Pinnacle West Capital Corp. advanced at least 1.1 percent to records. The group is coming off its best week of performance since March 2015.

 

Have a wonderful evening everyone.

 

Be magnificent!

A profound understanding of religions allows the

destruction of the barriers that separate them.

Mahatma Gandhi

 

As ever,

 

Carolann

 

Don’t watch the clock; do what it does.  Keep going.

                                 -Sam Levenson, 1911-1980

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Poem: 

Our Agreement

By S. Whitney Holmes

The praying mantis on the porch

 is not so unsettling as surprising.  And a little drunk,

I am happy to stand on your porch

looking at this little green beast –

not thrust into our day, but folded from grass,

a sweet whistle if we put our lips to it,

arranged at the corner of our evening, turned

to pose for my camera.  Its face lovely, mean,

like yours.  Its face, my god!  The old religion

of the colored capsules that bloom sponge dinosaurs

when left in a glass of water.  I used to run them

under the hot tap to speed it up.  Now-

I would go back.  I would drop them

in a glass and watch their long necks eke out.

Would have you with me in an oversized T-shirt

to stand watch.  To know by the quiet measure of a sponge

grown big with whatever’s around, you must

love me this way.  Silent and looking at something else.

PHOTOS OF THE DAY Yalenny Vargas arranges Flags for the Fourth Of July celebrations at Liberty State Park in Jersey City, N.J. Mel Evans/AP

Tourists visit the Areios Pagos hill with the Acropolis in the background in Athens, Greece, Monday. Alkis Konstantinidis/Reuters

Market Closes for July 4, 2016

Market Index	Close	Change
Dow Jones	17949.37	CLOSED
S&P 500	2102.95	CLOSED
NASDAQ	4862.567	CLOSED
TSX	14258.87	+194.33
		+1.38%

International Markets

Market Index	Close	Change
NIKKEI	15775.80	+93.32
		+0.60%
HANG SENG	21059.20	+264.83
		+1.27%
SENSEX	27278.86	+133.85
		+0.49%
FTSE 100	6522.26	-55.57
		-0.84%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.044	1.060
CND. 30 Year Bond	1.673	1.715
U.S.    10 Year Bond	1.4441	1.4441
U.S. 30 Year Bond	2.2253	2.2253

Currencies

BOC Close	Today	Previous
Canadian $	0.77833	0.77212
US $	1.28479	1.29514
Euro Rate 1 Euro=		Inverse
Canadian $	1.43283	0.69792
US $	1.11507	0.89681

Commodities

Gold	Close	Previous
London Gold Fix	1350.75	1320.75
Oil	Close	Previous
WTI Crude Future	48.99	48.99

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a fourth day as commodity producers jumped, rebounding from losses sustained in the wake of the U.K.’s shock vote to exit the European Union.

     The S&P/TSX Composite Index climbed 1.4 percent to 14,258.87 at 4 p.m. in Toronto, the highest level since June 8.Canadian markets were closed Friday for Canada Day. Trading volume was 50 percent lower than the 30-day average with U.S. markets closed Monday for the Fourth of July holiday.

     The Canadian benchmark has swung wildly along with global markets, rebounding 4.2 percent in four trading sessions after slumping the most since February in the two days after the Brexit vote. The S&P/TSX is neck-and-neck with New Zealand as the world’s top-performing developed market in 2016, according to data compiled by Bloomberg. 

     Raw-materials producers soared 4.3 percent to lead gains across nine of 10 industries in the S&P/TSX. Silver Wheaton Corp. and MAG Silver Corp. surged at least 6.8 percent as silver vaulted above $21 an ounce for the first time in two years. Royal Bank of Canada and Toronto-Dominion Bank increased more than 1.1 percent to lead the nation’s largest lenders higher.

     Raw-materials producers have led the charge for Canada with a 57 percent gain this year, the best year-to-date performance for the industry in at least 30 years, according to data compiled by Bloomberg. Gold prices are on track for the biggest annual increase since 2010.

     Silver jumped as much as 7 percent to $21.1377 an ounce in London, while gold advanced to near a two-year high amid speculation of more central bank stimulus with traders now pricing in greater odds of a Federal Reserve rate cut than a hike.

     Bank of England Governor Mark Carney is set to make his third appearance in 12 days on Tuesday to address threats facing the financial system, as he breaks open an emergency central bank toolkit to soothe markets roiled by the prospect of another crisis. Nigel Farage, a central figure in the successful “Leave” campaign, resigned as leader of the U.K. Independence Party in London Monday.

     Gran Tierra Energy Inc. tumbled 6.9 percent, the most in almost a month, after agreeing on July 1 to buy PetroLatina Energy Ltd. in Colombia for $525 million in cash. The oil and gas explorer will pay for the deal through a combination of existing cash, debt and by issuing subscription receipts. Credit Suisse Group AG analyst David Phung suggests investors take a “wait and see” approach for Gran Tierra’s well results.

US

US markets closed for Independence Day.

 

Have a  wonderful evening everyone.

 

Be magnificent!

If a man reaches the heart of his own religion,

he has reached the heart of the others too.

Mahatma Gandhi

As ever,

Carolann

 

Knowledge is, in every country, the surest basis of public happiness.

                                             -George Washington, 1732-1799

 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

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

PHOTO OF THE DAY
Portugal fans cheer before their soccer match against Portugal in the EURO 2016 quarter finals at Stade Vélodrome in Marseille, France, on Thursday. Christian Hartmann/Reuters

Market Closes for June 30^th, 2016

Market Index	Close	Change
Dow Jones	17929.99	+235.31   +1.33%
S&P 500	2098.86	+28.09   +1.36%
NASDAQ	4842.672	+63.426   +1.33%
TSX	14064.54	+27.80
		+0.20%

International Markets

Market Index	Close	Change
NIKKEI	15575.92	+9.09
		+0.06%
HANG SENG	20794.37	+358.25
		+1.75%
SENSEX	26999.72	+259.33
		+0.97%
FTSE 100	6504.33	+144.27
		+2.27%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.060	1.121
CND. 30 Year Bond	1.715	1.759
U.S.    10 Year Bond	1.4765	1.5070
U.S. 30 Year Bond	2.2911	2.3130

Currencies

BOC Close	Today	Previous
Canadian $	0.77212	0.77313
US $	1.29514	1.29344
Euro Rate 1 Euro=		Inverse
Canadian $	1.43803	0.69540
US $	1.11033	0.90087

Commodities

Gold	Close	Previous
London Gold Fix	1320.75	1321.50
Oil	Close	Previous
WTI Crude Future	48.33	49.51

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a third day, capping the best quarterly gain in two years, as turmoil in global markets eased after a tumultuous four days following the U.K. vote to leave the European Union.

     The S&P/TSX Composite Index rose 0.2 percent to 14,064.54 at 4 p.m. in Toronto, reversing an earlier loss of as much as 0.5 percent. The S&P/TSX ended flat for the month of June and higher by 4.2 percent in the second quarter. Canadian markets will be closed Friday for the Canada Day holiday. Trading volume was about 6 percent higher than the 30-day average.

     Raw-materials producers gained 1.1 percent as seven of 10 industries in the S&P/TSX rose. Potash Corp. of Saskatchewan Inc. rallied as much as 6.6 percent before paring gains, amid speculation of a possible takeover. Shares closed 0.9 percent higher. Lucara Diamond Corp. rebounded 3.9 percent after slumping the most in four years Wednesday when its massive 1,109-carat diamond failed to sell at auction in London.

     Global stocks jumped after Bank of England Governor Mark Carney said the central bank will probably have to loosen policy within months to deal with the fallout of the Brexit vote. Boris Johnson, the high-profile “Leave” Brexit campaigner and former mayor of London, surprised observers earlier by dropping out of the race to replace U.K. Prime Minister David Cameron, casting more uncertainty on a volatile political situation in the country.

     Meanwhile, Bank of Nova Scotia and Canadian Imperial Bank of Commerce slipped at least 0.9 percent as financial services stocks slipped 0.2 percent.

     The Canadian benchmark has swung wildly along with global markets in the last week, posting its biggest two-day slump since February following the Brexit vote, then rallying the most since February in the following two days. The S&P/TSX trails New Zealand as the top-performing developed market in the world in 2016, according to data compiled by Bloomberg. 

     Canada’s economy eked out a 0.1 percent advance in April, the first increase in three months, as the real estate boom in Toronto and Vancouver and robust consumer spending offset weakness in oil production, at least for a month. Output grew 0.1 percent, Statistics Canada said Thursday in Ottawa, matching the median forecast in a Bloomberg survey of economists. The increase follows declines of 0.2 percent in March and 0.1 percent in February.

     Health-care stocks have led declines in the gauge this month with a 21 percent slide, led by struggling drugmakers Valeant Pharmaceuticals International Inc. and Concordia International Corp. Technology shares followed with a 7.1- percent drop.

     Raw-materials producers have led the charge for Canada with a 51 percent gain this year, the best year-to-date performance for the industry in at least 30 years, according to data compiled by Bloomberg. Gold prices are on track for the biggest annual increase since 2010.

     The gains in commodity stocks have helped Canadian shares retain their more expensive relative to U.S. peers. The S&P/TSX trades at 21.6 times earnings, about 11 percent higher than the multiple of the S&P 500.

US

By Dani Burger and Joseph Ciolli

     (Bloomberg) — U.S. stocks climbed, with the S&P 500 Index capping a third consecutive quarterly advance, as policy makers signaled further steps to buffer the impact of Britain’s decision to leave the European Union.

     Equities ended the quarter with the biggest three-day rally since February after the Brexit vote nearly derailed gains. The benchmark index climbed within 1 percent of its all-time high headed into the referendum amid signs global growth had stabilized and central banks would remain supportive. Energy producers led the advance in the period, rising nearly 11 percent as crude had its best quarter since 2009. The health- care group rose 5.8 percent, reversing most of a 5.9 percent in the first quarter.

     The S&P 500 climbed 1.4 percent to 2,098.86 at 4 p.m. in New York, on top of a 3.5 percent rebound in the previous two sessions. The gauge finished the quarter up 1.9 percent and erased a June decline in the final minute of trading, rising 0.1 percent for the month. The Dow Jones Industrial Average increased 235.31 points, or 1.3 percent, to 17,929.99. The Nasdaq Composite Index added 1.3 percent. About 8.8 billion shares traded hands on U.S. exchanges, 22 percent above the three-month average.

     Gains today were boosted after word the European Central Bank is considering loosening the rules for bond purchases in its stimulus program, to ensure enough debt is available to buy in the aftermath of the Brexit vote. Bank of England Governor Mark Carney also said the BOE will probably have to loosen policy within months to deal with the fallout, though he warned there’s only so much he can do to protect the economy.

     “There’s no doubt that central bankers are helping to underpin this market and take some of the risk out,” said Quincy Krosby, a market strategist at Prudential Financial Inc., which oversees about $1.2 trillion. “This is a commitment from central banks to keep the liquidity flowing into the market, and that’s crucial. Nonetheless, you’ve got to respect the fact that it’s the end of the quarter and half year, and rebalancing is taking place.”

     A global rally lifted equities in the prior two days, returning the S&P 500 to an annual advance, as central banks reassured investors that they’re ready to increase stimulus after the U.K.’s vote. The outcome of the referendum had sparked a two-day selloff, the worst for the benchmark in 10 months, that wiped as much as $3.6 trillion from stocks worldwide.

     The CBOE Volatility Index saw its fourth-straight decline today, the longest in a month, pushing the measure of market turbulence known as the VIXto a three-week low. Still, investors remain on alert with Britain in limbo as its leaders fight to see who will succeed David Cameron as prime minister, preventing the country from entering talks to determine its future relationship with the EU.

     Consumer staples shares led a third day of gains, bolstered by a 17 percent surge in Hershey Co. after a report Mondelez International Inc. made a takeover bid for the chocolate maker. Utilities increased for a sixth day, the longest since March, with investors tilting toward defensive assets even after the strongest two-day climb in four months. Phone companies rose to the highest level since 2001.

     “The majority of U.S. investors are of the belief that the selloff in U.S. markets post-Brexit was a little bit overdone,” said Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles. “You had positive stress test reports with raised buybacks and dividends from the majority of money center banks last night, which has added to overall positive sentiment. Any time there’s M&A, those types of transactions provide positive sentiment for the market overall.”

     While the turmoil interrupted the S&P 500’s march to an all-time high — a move propelled by optimism over a combination of low rates and moderate growth — it has also prompted traders to push back bets the Federal Reserve will raise borrowing costs any time soon. They now indicate a rate boost is unlikely before 2018.

     The S&P 500 is 0.7 percent below its June 23 level after the rebound from a 5.3 percent two-day selloff. The gauge erased its June decline to finish little changed after coming within 1 percent of a record twice this month. While the index rose 1.9 percent in the quarter, analysts forecast S&P 500 companies will report a 5.3 percent drop in earnings for the period, a fifth straight decline.

     Exxon Mobil Corp. and Chevron Corp. have bolstered energy shares in the benchmark since the end of March, with the two rising at least 9.8 percent on the way to a third quarterly gain, the longest since 2011. Exxon Mobil reached an 18-month high on Thursday.

     Meanwhile, technology companies were the S&P 500’s worst performers in the second quarter, dragged down by declines in heavyweights Microsoft Corp., Apple Inc. and Google parent Alphabet Inc. Disappointing earnings from the trio of tech giants sent their shares tumbling in April, taking the steam out of an equity rebound after the S&P 500 had rallied as much as 15 percent from a 22-month low in February.

     In Thursday’s trading, all of the S&P 500’s 10 main industries rose, with consumer staples, industrials and utilities gaining more than 2 percent. A Goldman Sachs Group Inc. basket of the most shorted shares in the Russell 3000 Index was in the midst of its strongest three-day climb since February, up 9 percent.

     Consumer staples climbed 2.2 percent, the most in almost seven months, to a fresh record, spurred by the report of Mondelez’s bid for Hershey. Hershey confirmed it received an offer which it rejected. The shares soared as much as 21 percent, the most in nearly 14 years, to an all-time high. Mondelez advanced 5.9 percent, the most since 2014, and erased losses that followed the U.K. referendum.

     PepsiCo Inc. added 2.7 percent, the best since October. Philip Morris International Inc. and the Coca-Cola Co. increased at least 2 percent.

     The industrials group erased a quarterly slide in the period’s final session after rallying 5.5 percent in three days. General Electric Co. was the biggest driver, gaining 7.4 percent since Monday’s close on the way to a three-month high. 3M Co. and Boeing Co. rose at least 2.1 percent Thursday.

     Utilities reached a fresh all-time high with the group marking a fourth-straight quarterly gain, the longest since 2011. American Water Works Co. led the pack since March with an almost 23 percent climb. NextEra Energy Inc. has been the group’s strongest contributor to the second-quarter increase, rising 10 percent.

     Banks in the benchmark index salvaged a 1 percent quarterly gain, after rallying 7.3 percent in June’s final three sessions. U.S. Bancorp and JPMorgan Chase & Co. added more than 1.5 percent today.

     Among other shares moving on corporate news, Starz rose 5.9 percent after Lions Gate Entertainment Corp. agreed to buy billionaire John Malone’s cable outlet in a deal valued at $4.4 billion. Lions Gate slipped 3.4 percent.

     Visa Inc. slumped 3.4 percent and MasterCard Inc. tumbled 4.4 percent after a court rejected a $5.7 billion settlement of claims the firms improperly fixed credit-card swipe fees, potentially renewing years of litigation with millions of U.S. merchants.

 

Have a wonderful long weekend everyone!

 

Be magnificent!

“Be kind whenever possible. It is always possible.” Dalai Lama

 

As ever,

 

Karen

“We shall never know all the good that a simple smile can do.” Mother Teresa

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On June 29, 1995, the shuttle Atlantis and the Russian space station Mir docked, forming the largest man-made satellite ever to orbit the Earth.
Go to article »

1908 – First Dominion Exhibition opens in Calgary; origin of Calgary Stampede.

1922 – France formally transfers ownership of 100 hectares at Vimy Ridge to Canada.

1926 – Arthur Meighen appointed Prime Minister following King-Byng controversy.

THINGS MONEY CAN’T BUY:

1. MANNERS
2. MORALS
3. RESPECT
4. CHARACTER
5. COMMON SENSE
6. TRUST
7. PATIENCE
8. CLASS
9. INTEGRITY
10. LOVE

Being challenged in life is inevitable.  Being defeated is optional.

PHOTOS OF THE DAY

Cabins for tourists are seen on the grasslands on the outskirt of Ulaanbaatar, Mongolia, on Wednesday. Jason Lee/Reuters

Mexican President Enrique Pena Nieto (l.), Canadian Prime Minister Justin Trudeau (c.) and US President Barack Obama walk together at the National Gallery of Canada at the start of the North American Leaders’ Summit in Ottawa on Wednesday. Kevin Lamarque/Reuters

Market Closes for June 29^th, 2016

Market Index	Close	Change
Dow Jones	17691.74	+282.02   +1.62%
S&P 500	2069.31	+33.22   +1.63%
NASDAQ	4779.246	+87.379   +1.86%
TSX	14047.90	+205.21
		+1.48%

International Markets

Market Index	Close	Change
NIKKEI	15566.83	+243.69
		+1.59%
HANG SENG	20436.12	+263.66
		+1.31%
SENSEX	26740.39	+215.84
		+0.81%
FTSE 100	6360.06	+219.67
		+3.58%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.121	1.079
CND. 30 Year Bond	1.759	1.725
U.S.    10 Year Bond	1.5070	1.4613
U.S. 30 Year Bond	2.3130	2.2756

Currencies

BOC Close	Today	Previous
Canadian $	0.77313	0.76731
US $	1.29344	1.30325
Euro Rate 1 Euro=		Inverse
Canadian $	1.43888	0.69499
US $	1.11245	0.89892

Commodities

Gold	Close	Previous
London Gold Fix	1321.50	1309.70
Oil	Close	Previous
WTI Crude Future	49.51	47.85

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose to cap the biggest two- day rebound since February, as energy producers rallied with crude amid speculation policy makers will move to prevent the U.K.’s European secession from hampering global growth.

     The S&P/TSX Composite Index rose 1.4 percent to 14,036.74 at 4 p.m. in Toronto. The Canadian benchmark has swung back to a 2.5 percent gain in two sessions retracing some of the losses from the biggest two-day drop since February. The S&P/TSX is down 0.2 percent in June, on pace to halt a four-month rally. Trading volume was 11 percent higher than the 30-day average.

     Global markets stabilized yesterday after a sharp two-day downturn in the wake of the surprise U.K. vote to leave the European Union. The S&P/TSX closed Wednesday as the top- performing developed markets in the world in 2016, after being neck-and-neck with New Zealand, according to data compiled by Bloomberg. 

     Energy producers climbed 2.3 percent, leading gains as all 10 industries in the S&P/TSX rose. Crude in New York gained a second day to top $49 a barrel, as U.S. industry data showed stockpiles declined. Canadian Energy Services & Technology Corp. jumped 8.9 percent for the biggest gain.

     Traders are now pricing in a greater probability of an interest rate cut at the Federal Reserve than a hike, according to data compiled by Bloomberg. EU leaders called for an orderly British withdrawal from the bloc to minimize instability. Any negotiations on Britain’s future won’t be started until it gave official notification of its departure.

     Raw-materials producers have led the charge for Canada with a 49 percent gain, the best year-to-date performance for the industry in at least 30 years, according to data compiled by Bloomberg. Gold prices are up almost 25 percent this year, on track for its biggest annual increase since 2010 to halt a three-year slide. The gains in commodity stocks have helped Canadian shares retain their more expensive relative to U.S. peers. The S&P/TSX trades at 21.6 times earnings, about 13 percent higher than the multiple of the S&P 500.

     Canadian Imperial Bank of Commerce dropped 2.6 percent to its lowest level since April, after agreeing to buy PrivateBancorp Inc. for $3.8 billion in a cash-and-stock deal to gain a U.S. commercial banking platform in the lender’s biggest- ever transaction.

     Health-care stocks lagged the broader gauge on Wednesday, adding 0.9 percent. Valeant Pharmaceuticals International Inc. ended the day 0.7 percent higher after falling as much as 2 percent. Valeant’s Bausch + Lomb acquisition looks to be worth less than the $8.7 billion the drugmaker spent to buy the business back in 2013, according to Wells Fargo & Co. analyst David Maris.

     Empire Co., owner of the Sobeys grocery store chain, slumped 11 percent to the lowest level in more than three years. The grocer reported a net loss in its fourth quarter of C$942.6 million, compared with a profit a year ago, as Sobeys same-store sales dropped 1.8 percent. Empire also reported an impairment loss of about C$1.3 billion in its western Canada business unit.

US

By Dani Burger and Bailey Lipschultz

     (Bloomberg) — U.S. stocks advanced amid a global rally, with the S&P 500 Index posting its strongest two-day climb in four months, as tension eased over the impact of a U.K. exit from the European Union.

     Fears that Britain’s EU withdrawal will further stymie global growth continued to ebb, soothed by speculation policy makers will counter the effects. Energy shares capped their best two days since March as crude jumped. A Goldman Sachs Group Inc. basket of the most shorted shares in the Russell 3000 Index saw its biggest surge since 2009, while the Dow Jones Industrial Average stretched its rebound to more than 550 points since Monday’s close. 

     The S&P 500rose 1.7 percent to 2,070.77 at 4 p.m. in New York, bringing its two-day climb to 3.5 percent. The gauge erased its loss for the year after last week wiping out a 2016 advance of as much as 3.7 percent. The Dow jumped 284.96 points, or 1.6 percent, to 17,694.68. The Nasdaq Composite Index increased 1.9 percent. About 8 billion shares traded hands on U.S. exchanges, 11 percent above the three-month average.

     “I don’t think it’s shocking that cooler heads are prevailing temporarily,” said Daniel Kern, chief investment officer of Boston-based TFC Financial Management, which oversees $850 million. “The markets are discounting that there’s very little chance of the Fed raising rates this year. In the last 36 hours, there’s been some discussion about the possibility that the British back away from Brexit. We’re definitely in the speculation phase of this process.”

     With Britain in limbo as EU leaders gathered in Brussels to discuss the nation’s withdrawal from the bloc, traders have pushed back bets on Federal Reserve interest-rate increases, indicating higher borrowing costs are unlikely before 2018. Meanwhile, a majority of economists surveyed by Bloomberg predict that the Bank of England will add more stimulus, including cutting rates in the third quarter.

     Equities recovered for a second session after two days of heavy selling sparked by the Brexit decision last week wiped $3.6 trillion from global equities. The S&P 500 had tumbled 5.3 percent to briefly erase its 2016 advance, and has since cut its post-vote drop by more than half. The CBOE Volatility Index slid for a third day, the longest in two weeks. The measure of market turbulence known as the VIX dropped 11 percent Wednesday to 16.64, the lowest since June 9.

     “Today was just a reaction to an overreaction and a bounce back from depressed levels that weren’t justified by economic realities,” said John Carey, a Boston-based fund manager at Pioneer Investment Management Inc., which oversees about $230 billion. “The outlook though is still murky because the exit will take a couple years, and there may be some repercussions that we aren’t prepared for. We aren’t over the hump or out of the woods quite yet.”

     Investors are looking to policy makers for support as they await Britain’s plan for its extrication from the EU. While European Central Bank President Mario Draghi called for global policy alignment, South Korea announced a fiscal stimulus package on Tuesday and Bank of Japan Chief Haruhiko Kuroda said Wednesday that more funds can be injected into the market should they be needed.

     The turmoil spurred by the U.K. vote interrupted the S&P 500’s march toward an all-time high this month, a move stoked by optimism that a mixture of low rates and moderate growth would bolster rising stock prices. The benchmark came within 1 percent of a record on June 8 and again last Thursday, on the day of the referendum as investors wagered Britain would remain in the EU. The gauge is now on track for its first monthly decline since February, down 1.3 percent.                       

     Trimmed by Wednesday’s rally, the main U.S. equity index’s Brexit losses aren’t spoiling a third straight quarterly advance, with the S&P 500 currently up 0.5 percent for the three months. Energy producers remain the strongest performers during the period, on pace for the biggest gain in two years. Raw- materials fell out of second place following the U.K. vote after the group’s steepest two-day slide since September 2011.

     “The U.S. is continuing to do well, and that’s also cushioning the reaction to Brexit,” said Brad McMillan, chief investment officer of Commonwealth Financial Network in Waltham, Massachusetts, which oversees $100 billion. “It’s looking increasingly likely that the worst-case scenario, which is what markets initially reacted to, is not the most likely case. The initial reaction was overdone and what that did was set the groundwork for a more organized and thoughtful reaction later on.”

     While it’s still too early to detect any impact from Brexit in U.S. economic data, a report today showed consumer purchases moderated last month after the biggest advance since August 2009, as American households realigned outlays with slower income growth. A separate measure showed pending home sales fell more than projected in May, a sign demand cooled after a robust start to the busiest selling season of the year.

     In Wednesday’s trading, energy companies were near the top of the S&P 500’s 10 main industries for a second day, as West Texas Intermediate crude futures rose 4.2 percent after government data showed oil inventories dropped for a sixth week. Banks extended their recovery, and health-care shares were among the strongest performers as drug stocks continued to rebound. Utilities lagged again, rising 0.3 percent.

     Citigroup Inc. led banks higher for two straight days, soaring 9.5 percent to recover much of its 13 percent tumble in the prior two sessions. Bank of America Corp. and JPMorgan Chase & Co. advanced more than 2.8 percent Wednesday. Lenders in the benchmark are up 6 percent since Monday’s close.                        

     Airline stocks shrugged off rising oil prices and a terrorist attack at Istanbul’s main international airport that killed 41 people, with a Bloomberg index of U.S. carriers seeing its strongest back-to-back climb since November 2014. Southwest Airlines Co. and Delta Air Lines Inc. added at least 3.9 percent, while United Continental Holdings Inc. rose 4.2 percent to bring its two-day increase to 7.5 percent.

     Merck & Co. and Pfizer Inc. rose more than 1.7 percent to help power the climb in health-care, while Eli Lilly & Co. jumped 4 percent, its biggest gain in five months. Biogen Inc. added 4.6 percent, the most since April, and the Nasdaq Biotechnology Index advanced 2.2 percent after gaining 3.8 percent yesterday.

     A turnaround in S&P 500 biotechs this quarter has helped push the health-care group to the second-best gain among the index’s 10 main industries, after trailing the pack with a 5.9 percent slide in the first quarter. Pfizer and Bristol-Myers Squibb Co. have risen more than 14 percent in the period to provide the most lift, along with Johnson & Johnson’s 10 percent increase.

     General Electric Co. contributed the strongest boost to the benchmark’s industrial group, rising 2 percent. The company won approval to drop its designation as a too-big-to-fail financial institution, capping a transformation that has included the sale of almost all of its lending business. Boeing Co. rose 2.5 percent and airlines also helped lift industrials, while the Dow Jones Transportation Average gained 2.2 percent.                      

     Technology companies climbed 1.7 percent, with Microsoft Corp. increasing 2.2 percent for its first back-to-back gains in almost a month. Oracle Corp. added 3.6 percent, the most in three months, with the company selling $14 billion of bonds in what would be the year’s third-largest deal. JPMorgan Chase & Co. also upgraded Oracle’s shares to neutral from the equivalent of sell. Facebook Inc. and Cisco Systems Inc. rose at least 1.3 percent.

     Among shares moving on corporate news, Alcoa Inc. lost 2.5 percent, after saying the aluminum smelting business it’s spinning off will take on $1 billion in new debt to help reduce the burden on the remaining company as it battles to maintain credit ratings. The stock fell as much as 3.4 percent.

     Southwestern Energy Co. sank 6.2 percent after the oil and gas explorer said it would sell shares to reduce debt.

Have a wonderful evening everyone!

 

Be magnificent!

I make no distinction between one religion and another.

People may worship me in any form they wish.

The form of worship does not matter to me;

my only concern is the quality of love which is expressed in worship.

I accept every kind of worship, because I am supreme.

The Bhagavad Gita

As ever,

 

Carolann

Throughout the centuries there were men who took first steps down new roads

armed with nothing but their own vision.

                                         -Ayn Rand, 1905-1982, The Fountainhead, 1957. 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Points of Progress:

FRANCE

To curb the creep of work into private life, a labor-reform bill now in motion includes an  amendment to ban sending email to workers after hours.  It specifically suggests that firms with 50 or more employees draft policies to limit the encroachment of duties wrought by digital technology.  Some charge that the measure does not do enough (adherence would be voluntary).  Others worry that the move would hurt France’s global competitiveness. –BBC

GREENSBORO, N.C.

Citizens won direct control over public spending  – at least a tiny slice of it – when the government of this midsize city became the first in the South (and one of a small but growing number around the world) to implement participatory budgeting.  “The city council agreed to allocate $100,000 for expenditures in each district through [PB],” reports Yes! Magazine.  “The additional cost of implementation…was split between the city and local advocates, who received much of their funding from community foundations.”  Sample result of the people power: The transit authority’s new software shows passengers where buses are in real time. –Yes!Magazine.

SANTIAGO, CHILE

A (mostly) renewable-powered urban rail system will be the world’s first.  The Metro de Santiago signed agreements with international solar-and wind-power concerns that will provide 60 percent  of the system’s electric power needs by 2018.  Among Latin American metro-transit systems Santiago’s is second only to Mexico City’s in size.  –Ecowatch, Energial REnovables (Spanish).

HELSINKI, FINLAND

Score another win for women in science.  Biochemical engineer Frances Arnold was awarded the prestigious $1.2 million Millennium Technology Prize for developing “directed evolution,” a method of producing useful enzymes from renewable resources.  Her work has revolutionized the production of industrial chemicals and even been used to make jet fuel from sugars.   The prize has been awarded every two years since 2004 by the Technology Academy Finland.  Dr. Arnold is based at the California Institute of Technology.

PHOTOS OF THE DAY

Demonstrators in Trafalgar Square, central London, take part in a protest on Tuesday, aimed at showing London’s solidarity with the European Union following the recent EU referendum. Dylan Martinez/Reuters

The SLS Five-Segment Solid Rocket Motor that will launch NASA’s Space Launch System and Orion spacecraft to deep space undergoes a static test fire at the Orbital ATK facility in Promontory, Utah, on Tuesday. Jim Urquhart/Reuters

Market Closes for June 28^th, 2016

Market Index	Close	Change
Dow Jones	17409.72	+269.48   +1.57%
S&P 500	2036.02	+35.48   +1.77%
NASDAQ	4691.867	+97.424   +2.12%
TSX	13839.31	+149.52
		+1.09%

International Markets

Market Index	Close	Change
NIKKEI	15323.14	+13.93
		+0.09%
HANG SENG	20172.46	-54.84
		-0.27%
SENSEX	26524.55	+121.59
		+0.46%
FTSE 100	6140.39	+158.19
		+2.64%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.079	1.084
CND. 30 Year Bond	1.725	1.724
U.S.    10 Year Bond	1.4613	1.4512
U.S. 30 Year Bond	2.2756	2.2770

Currencies

BOC Close	Today	Previous
Canadian $	0.76731	0.76495
US $	1.30325	1.30728
Euro Rate 1 Euro=		Inverse
Canadian $	1.44433	0.69236
US $	1.10826	0.90232

Commodities

Gold	Close	Previous
London Gold Fix	1309.70	1324.55
Oil	Close	Previous
WTI Crude Future	47.85	46.33

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, bouncing back from the steepest two-day slide since February, as equity markets around the world rallied for the first time since the U.K.’s surprise vote to leave the European Union.

     The S&P/TSX Composite Index rose 1.1 percent to 13,842.69 at 4 p.m. in Toronto, after the benchmark posted a two-day retreat of 3.1 percent through Monday, the biggest since February as global markets churned in the wake of the U.K. referendum. The S&P/TSX remains negative in June, with a 1.6 percent loss for the month and on pace to halt a four-month rally.

     Energy producers and the nation’s largest lenders contributed the most to gains in the S&P/TSX as nine of 10 industries advanced. Royal Bank of Canada and Toronto-Dominion Bank increased more than 1.5 percent as lenders rebounded from the lowest level in more than two months. Industrial producers increased 1.6 percent, led by gains in the railroad operators. Only materials producers fell, led by gold miners as demand for haven assets faltered.

     Bombardier Inc. jumped 5 percent, the most in two months, after the struggling aircraft manufacturer finalized a firm order with Air Canada for 45 C Series jets. The sale is valued at $3.8 billion based on list prices.

     Suncor Energy Inc. and Canadian Natural Resources Ltd. rose at least 1.7 percent to lead energy stocks higher as all but two members of the S&P/TSX Energy Index advanced. Crude futures in New York rose 3.3 percent, after slumping 7.5 percent over the previous two sessions.

     Raw-materials producers are the only laggards in the broader index, slipping 0.6 percent as a group as gold retreated after its biggest two-day surge in seven years. Barrick Gold Corp. dropped 2.6 percent, after soaring 12 percent in the previous two sessions.

     Canadian equities have fared relatively better compared with global markets this year, led by a resurgence in commodities prices. A gauge of raw-materials producers has jumped 47 percent while energy stocks jumped 14 percent.

     The S&P/TSX is neck-and-neck with New Zealand as the top- performing developed markets in the world in 2016, with the countries now the only two among 24 in positive territory, according to data compiled by Bloomberg. It’s a far cry from 2015, when the S&P/TSX was one of the worst markets in the world, slumping the most since the 2008 financial crisis.

     Canadian shares remain more expensive relative to their U.S. peers. The S&P/TSX now trades at 21.3 times earnings, about 13 percent higher than the valuation of the S&P 500 Index.

     Global markets rebounded as the S&P 500 Index increased 1.8 percent, recovering from the lowest close since March on Monday. First-quarter U.S. economic growth rose at a 1.1 percent annualized rate, exceeding previous estimates of 0.8 percent on improved trade and business investment. EU leaders are gathering for a two-day European Council summit to discuss Britain’s exit.

US

By Dani Burger and Bailey Lipschultz

     (Bloomberg) — U.S. stocks surged the most in nearly four months, rising for the first time since Britain voted to leave the European Union amid optimism that policy makers are committed to limit the fallout from the U.K.’s exit.

     Tuesday’s turnaround gathered pace late in the day, with the Dow Jones Industrial Average adding more than 260 points. Banks had the strongest rally in six weeks, following their worst back-to-back sessions in almost five years. Facebook Inc., Apple Inc. and Microsoft Corp. rose at least 1.6 percent to boost the technology group, while energy producers climbed the most in 2 1/2 months as crude prices jumped.

     The S&P 500 Index advanced 1.8 percent to 2,036.09 at 4 p.m. in New York, the most since March 1 amid a rebound from the steepest two-day drop since August. Gains accelerated in afternoon trading as the index pushed above its average price during past 200 days. The rally topped out near the 100-day moving average. The Dow added 269.48 points, or 1.6 percent, to 17,409.72. The Nasdaq Composite Index increased 2.1 percent.

     “It’s a case of confidence, when the market goes higher it brings confidence,” said Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion. “Getting through most of the day and the market holding onto those gains, that pulls in other investors who may have been watching and just waiting to step up.”

     The U.K.’s decision last week triggered a rush toward safe havens as global equities lost about $3.6 trillion in market value and the S&P 500 tumbled 5.3 percent to erase its 2016 advance. The CBOE Volatility Index tumbled 21 percent Tuesday, the most since 2011, though the measure of market turbulence known as the VIX is still on the way to its biggest monthly climb since a record jump last August.

     After the market closed, Nike Inc. sank 6.9 percent as of 4:52 p.m. as its future orders, a proxy for demand, missed estimates. The disappointment renewed concerns that the world’s largest sports brand has entered a period of slowing growth.

     European Central Bank President Mario Draghi added to speculation of a more coordinated effort by policy makers to mitigate the Brexit repercussions, calling for global policy alignment in a speech at the ECB Forum in Sintra, Portugal. Draghi said there is a “common responsibility” to address the world’s economic weaknesses.                          

     The rally Tuesday brings a measure of relief after two days of sharp declines spurred by concerns that Britain’s EU exit would further burden an already sluggish global economy. Investors have pushed back bets on Federal Reserve interest-rate increases, pricing in just a 10 percent chance for higher borrowing costs by February 2017, down from 52 percent before the vote outcome. Odds for a rate cut by November are nearly 14 percent.

     EU leaders gathered for a two-day European Council summit to discuss Britain’s exit. Germany, France and Italy prodded the U.K. government to start the process, saying they want to move forward and limit market risks. Britain’s Chancellor of the Exchequer George Osborne sought to reassure investors on Monday, saying that contingency plans were in place to shore up the economy amid ongoing volatility, but that Brexit won’t be “plain sailing” — something that Cameron reiterated in Parliament.

     “People are calming down and looking at it more rationally,” said John Conlon, chief equity strategist at People’s United Wealth Management, which oversees $5.5 billion. “It’s a combination of that plus the fact that by now you’ve seen the investors that were betting that Brexit wasn’t going to happen finally unwinding those bets.”

     Aside from the Brexit drama, a report today showed the U.S. economy expanded more than previously projected in the first quarter as improved performance in trade and business investment more than made up for weaker consumer spending. Separate data showed consumer confidence rose to the highest since October as Americans became somewhat more optimistic about the economy.

     In Tuesday’s trading, energy, financial and technology shares were the strongest among the S&P 500’s 10 main industries, increasing at least 2 percent. Health-care and consumer discretionary companies added more than 1.9 percent. A Goldman Sachs Group Inc. basket of the most shorted shares in the Russell 3000 Index jumped 2.5 percent, the most in more than two months. About 8.4 billion shares traded hands on U.S. exchanges, 16 percent above the three-month average.                          

     Banks in the S&P 500 increased 3.2 percent, the steepest since May 18, after falling 10 percent in two sessions. JPMorgan Chase & Co. and Wells Fargo & Co. added more than 2.4 percent. Comerica Inc. and Regions Financial Corp. were among the biggest gainers in the group, climbing at least 4 percent after back-to- back losses of more than 16 percent.

     Biotechnology shares led the rally in health-care, with Gilead Sciences Inc. jumping 4.8 percent, the most in almost five months. Regulators approved Gilead’s hepatitis C drug for all forms of the viral disease. Celgene Crop. rose 2.2 percent, while Regeneron Pharmaceuticals Inc. and Biogen Inc. climbed at least 1.5 percent. The Nasdaq Biotechnology Index jumped 3.8 percent, the most in 11 weeks.

     In the broader health-care group, Johnson & Johnson rose 1.4 percent in its fourth gain in five days, climbing to an all- time high. Allergan Plc and Medtronic Plc added at least 2.1 percent.                          

     Microsoft rose 2.1 percent to boost tech companies in the benchmark, clawing back a portion of a 6.7 percent drop in the prior two sessions as the software giant bounced from an eight- month low. Facebook surged 3.4 percent, its best gain in two months. Seagate Technology Plc and Micron Technology Inc. posted the strongest advances, rising at least 6.2 percent. The Philadelphia Stock Exchange Semiconductor Index added the most since May 20.

     Oil and gas companies marked their best session since April 12 as West Texas Intermediate crude futures jumped 3.3 percent. Exxon Mobil Corp. rallied 2.3 percent, the strongest since March 7, while Marathon Petroleum Corp. advanced 8.4 percent, its biggest one-day climb since February 2012.

     Dow Chemical Co. and merger partner DuPont Co. lost 2 percent after Dow said it plans to eliminate about 2,500 jobs and shut plants in North Carolina and Japan as it slims down after taking full control of its Dow Corning Corp. silicone venture. The company announced the Corning deal in December at the same time it unveiled an agreement to merge with DuPont, a $56.4 billion combination that’s under antitrust scrutiny.

     Among other shares moving on corporate news, Xencor Inc. soared 32 percent, the most since December 2013, to help boost the Russell 2000 Index. The company announced a deal with Novartis AG to collaborate on developing cancer therapies. Novartis added 3 percent, the most in a month.

 

Have a wonderful evening everyone.

 

Be magnificent!

What then do I mean by the ideal of a universal religion?

I do not mean a universal philosophy, or a universal mythology or a universal ritual,

but I mean that this world must go on, wheel within wheel.

What can we do?

We can make it run smoothly, we can lessen friction, we can grease the wheels , as it were.

By what?

By recognizing variation.

Just as we have recognized unity, by our very nature so we must also recognize variation.

We must learn that truth may be expressed in a thousand ways, and each one yet be true.

We must learn that the same thing can be viewed from a hundred different standpoints,

and yet be the same thing.

Swami Vivekananda

As ever,

 

Carolann

 

I’ve never been poor, only broke.  Being poor is a frame of mind. 

Being broke is only a temporary situation.

                                                    -Michael Todd, 1909-1958

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in 1914 the poet Edward Thomas and his wife Helen were going by train to see the American poet Robert Frost at Ledbury in Herefordshire.  Thomas made some jottings about these suspended moments in his notebook and much later, some time in the first five months of 1915 and after Frost had convinced him of his vocation as a poet, he wrote this, his most famous poem.  He was killed on the Western Front in 1917.  Adlestrop station was an early victim of Dr. Beeching’s rationalization of the rail network in the 1960s.

Adlestrop

Yes, I remember Adlestrop –
The name, because one afternoon
Of heat the express-train drew up there
Unwontedly.  It was late June.

The steam hissed.  Someone cleared his throat.
No one left and no one came
On the bare platform.  What I saw
Was Adlestrop – only the name

And willows, willow-herb, and grass,
And meadowsweet, and haycocks dry,
No whit less still and lonely fair
Than the high cloudlets in the sky.

And for that minute a blackbird sang
Close by, and round him, mistier,
Farther and farther, all the birds
Of Oxfordshire and Gloucestershire.

PHOTOS OF THE DAY

Traders from BGC, a global brokerage company in London’s Canary Wharf financial center, react as European stock markets open early Friday after Britain voted to leave the European Union in the EU BREXIT referendum. Russell Boyce/Reuters

Britain’s Prime Minister David Cameron leaves Number 10 Downing Street in London on Friday with his wife, Samantha, to speak after Britain voted to leave the European Union. Phil Noble/Reuters

People walk on the installation ‘The Floating Piers’ by Bulgarian-born artist Christo Vladimirov Yavachev, known as Christo, on Lake Iseo, northern Italy, on Friday. Stefano Rellandini/Reuters

Market Closes for June 24th, 2016

Market Index	Close	Change
Dow Jones	17401.50	-609.57   -3.38%
S&P 500	2042.00	-71.32   -3.37%
NASDAQ	4707.980	-202.061   -4.12%
TSX	13869.61	-261.77
		-1.85%

International Markets

Market Index	Close	Change
NIKKEI	14952.02	-1286.33
		-7.92%
HANG SENG	20259.13	-609.21
		-2.92%
SENSEX	26397.71	-604.51
		-2.24%
FTSE 100	6138.69	-199.41
		-3.15%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.176	1.291
CND. 30 Year Bond	1.808	1.917
U.S.    10 Year Bond	1.5735	1.7458
U.S. 30 Year Bond	2.4247	2.5547

Currencies

BOC Close	Today	Previous
Canadian $	0.76881	0.78352
US $	1.30071	1.27629
Euro Rate 1 Euro=		Inverse
Canadian $	1.44219	0.69339
US $	1.10877	0.90190

Commodities

Gold	Close	Previous
London Gold Fix	1315.50	1262.15
Oil	Close	Previous
WTI Crude Future	47.19	49.21

Number of the Day
17,410,742
17.4 million Britons voted to leave the European Union, 51.9% of total votes. 16,141,241 voted to remain, 48.1% of the total.

Market Commentary:

Canada

By Eric Lam and Allison McNeely

     (Bloomberg) — Canada’s currency fell with its stocks while bonds rallied after Britain’s decision to secede from the European Union spurred concern the global recovery will falter.

     The yield on the Canadian government 10-year bond fell 13 basis points to 1.163 percent as investors sought refuge in fixed income. The country’s currency declined 1.85 percent to C$1.3012, after earlier falling the most in six years. The S&P/TSX Composite Index dropped 1.7 percent, less than most global stock indexes, as a gold rally limited declines.

     “I went to sleep confident and woke up looking, what happened here? It was totally unexpected,” Ian Nakamoto, director of research at MacDougall MacDougall & MacTier Inc. in Toronto.

     On a day when the surprise vote rattled global markets, Canadian assets fared relatively well. The loonie was the sixth- best performer among global currencies, while the equity decline was among the smallest in major markets.

     “We are well positioned to weather global market uncertainty as we have done in the past,” Prime Minister Justin Trudeau said in a statement from Ottawa. Trudeau was expected to speak later today in Quebec.

     The Bank of Canada, meanwhile, said the Group of Seven central banks are monitoring the situation closely. The Brexit vote may push back any rate increase into the fourth quarter of 2017, BMO Capital Markets economists said in a research note Friday. The vote also rules out a July increase by the U.S. Federal Reserve, they said.

     Trading in the swaps market suggests a 21 percent chance of a Bank of Canada rate cut in October, from just 7 percent Thursday.

     The U.K. was Canada’s fifth-largest trading partner last year, accounting for about $21.2 billion in total trade, according to data compiled by Bloomberg. That compared with more than $540 billion in cross-border commerce with the U.S., Canada’s largest partner by far.

     Canadian firms most exposed to the European market include Brookfield Asset Management Inc., CGI Group Inc. and Great-West Lifeco Inc.. Other firms with relatively large exposures include software company Open Text Corp.; plane and train maker Bombardier Inc.; aircraft simulator maker CAE Inc. and engineering firm WSP Global Inc.

     An index of the 19 Canadian companies most exposed to Europe dropped 3.6 percent, more than twice the drop of the main gauge, led by Great-West, Concordia Healthcare Corp. and Bombardier.

     Crude also fell, with the price for West Texas Intermediate dropping 4.9 percent, the biggest decline in four months. That may weigh on the Canadian currency, traders said.

     “We envision the Canadian dollar could weaken by up to 5 to 6 percent over the coming months based on the fact that this is a large-scale shock for global growth,” Bipan Rai, head of foreign exchange at the Canadian Imperial Bank of Commerce in Toronto, said by phone. “That’s not good for our export picture and our currency may bear the brunt of that pain.”                       

     Collectively, less than 3 percent of the S&P/TSX company revenue is derived from the U.K., according to Ian de Verteuil, a Toronto-based analyst with Canadian Imperial Bank of Commerce who created a Brexit index to track Canadian stocks most tied to the vote. For the year to date, the 19 so-called Brexit stocks have lost 0.3 percent, compared with the 6.8 percent gain for the benchmark S&P/TSX Composite Index.  

     “We have undertaken an in-depth analysis of the potential risks to our businesses, and notwithstanding the potential for increased market volatility and uncertainty that may arise, our businesses are resilient and we maintain significant financial flexibility, ” said Paul Mahon, chief executive officer of Winnipeg, Manitoba-based Great-West, said in a statement. Great- West, which has been in the U.K. since 1903, remains committed to Europe, Mahon said in the statement.

     Aimia Inc., the Montreal-based loyalty card company, which owns and operates Nectar, the largest loyalty program in the U.K., said the decline in the pound against the Canadian dollar would be unlikely to have material mid-term effects on the the company’s financial results. The pound was down 6.56 percent to C$1.7743.

     “The pressure on gross billings and operating costs from our U.K. business when the pound falls is counterbalanced by a reduction in costs related to global product development work that is also done in London,” said Rupert Duchesne, group chief executive at Aimia.

     Jason Russell, chief investment officer at Acorn Global Investments in Oakville, Ontario, said the firm, which manages about C$260 million ($199 million), reduced its risk ahead of the referendum though the result was still a shock.

     “Look, everyone walked into this thing last night knowing Remain was going to win,” he said. “Everyone felt that 12 hours ago. Strong opinions will get you in trouble.”

US

By Dani Burger and Anna-Louise Jackson

     (Bloomberg) — U.S. stocks plunged the most in 10 months, joining a selloff in global risk assets on speculation that the U.K. decision to leave the European Union will hamper worldwide growth.

     Equities sank to session lows in afternoon trading, with the Dow Jones Industrial Average sliding more than 600 points. The S&P 500 Index extended losses after falling below the 2,050 level, an area where other pullbacks during the prior two months found a floor. Banks, technology, raw-materials and industrial shares capped their worst single-day declines in more than four years.

     “Market participants are right to be concerned,” said Dean Maki, chief economist of investment firm Point72 Asset Management. “This is a legitimate risk-off event. We’re likely to see weaker growth as a result of this, and it’s appropriate that markets are reacting to this. Exports are likely to be weaker and earnings are a function of exports. U.S. exporters are going to have to deal with a stronger dollar again.”

     The S&P 500 fell 3.6 percent to 2,037.30 at 4 p.m. in New York, the most since August 24. The benchmark slid 1.6 percent for the week and erased its 2016 gain, which reached as much as 3.7 percent earlier this month. The Dow dropped 611.21 points, or 3.4 percent, to 17,399.86, also the biggest retreat since August. The Nasdaq Composite Index tumbled 4.1 percent, the most in almost five years. About 15 billion shares traded hands on U.S. exchanges, more than double the daily average during the past three months.

     The victory of the “Leave” campaign stunned many investors who’d put wagers on riskier assets over the past week as bookmakers’ odds suggested the chance of a so-called Brexit was less than one in four. The S&P 500 had gained 2 percent this week before the results were announced. The pound plunged the most in 30 years and European equities dropped as investors weighed the vote’s implications for the global economy.

     The day’s turbulence was accompanied by a chorus of central-bank assurances that policy makers stand ready to intervene. Governor Mark Carney said the Bank of England could pump billions of pounds into the financial system, while the European Central Bank said it will give banks all the funding they require to counter market turmoil. The Federal Reserve said it was “carefully monitoring” financial markets.

     As if results of the U.K. vote wasn’t enough, today was also the date of the annual rebalancing of FTSE Russell’s stock indexes, a procedure that reliably exacerbates trading. In 2015, the reconstitution helped fuel a jump in volume to more than 10 billion shares, the seventh-highest total of the year.                        

     Banks plunged after rallying the most in five weeks Thursday, with Citigroup Inc. down 9.4 percent, its steepest in four years. JPMorgan Chase & Co. and Goldman Sachs Group Inc. lost more than 6.9 percent, the most since at least 2012. Caterpillar Inc. and Boeing Co. sank more than 5.2 percent after pacing the Dow’s biggest gain in three months Thursday. Energy shares fell 3.5 percent as crude decreased 4.9 percent.

     “Fundamentally, this probably doesn’t impact many U.S. companies that aren’t invested in the U.K., though it impacts sectors like financials because it looks like there won’t be a Fed rate hike for a little bit longer, though even they don’t really know,” said Tim Ghriskey, who oversees $1.5 billion as managing director and chief investment officer at Solaris Asset Management.

     Traders abandoned bets on future interest-rate increases well into 2017, after expectations for higher borrowing costs this year had crept up yesterday on optimism the U.K. would remain in the EU. Odds of a Fed move by February plunged to 15 percent from 52 percent Thursday, while probability of an actual rate cut before the December meeting rose to more than 13 percent.

     In Friday’s session, nine of the S&P 500’s 10 main industries slid, with financials reversing their strongest climb since April with the biggest drop in four years. Seven groups sank at least 2.8 percent, with industrials, technology and raw- materials posting the worst one-day drop since 2011. Utilities were little changed.

     Ford Motor Co. lost 6.6 percent, the most since September 2014, after saying the Brexit will have an “adverse impact” on its operations. Parts makers Delphi Automotive Plc and BorgWarner Inc. slumped more than 9.5 percent. General Motors Co. slid 4.9 percent toward a four-month low.

     JPMorgan published a list last month of 22 stocks with the highest sensitivity to the Brexit outcome. The group is down an average 6.4 percent today. Among the companies identified by Dubravko Lakos-Bujas, JPMorgan’s chief U.S. equity strategist, Penske Automotive Group Inc. slumped 10 percent, the most since October 2009, while Invesco Ltd. has tumbled 14 percent for the biggest drop in seven years.

     The vote comes at a time when uncertainty already plagues U.S. stocks, with questions around the Fed’s ability to stoke growth after the worst month for hiring since 2010, a four- quarter decline in corporate profits, price-earnings ratios that are close to a decade high and a presidential election looming in the fall.

     The S&P 500 plunged 11 percent in its worst-ever start to a year before recovering through April. It’s virtually been stuck in place since, struggling to hold above the 2,100 level that has capped three rallies since November. It fell from that perch again after closing above it Thursday for the first time in two weeks.

     Fallout from the U.K.’s secession vote leaves global investors as reliant on their hedges as any time since the selloff that rocked markets in January and February. Trading of options and derivatives over the last week has risen in instruments that gain in times of market turbulence, among them futures on the CBOE Volatility Index. The measure of turmoil known as the VIX jumped 49 percent Friday, the most since August 2011.
 

Have a wonderful weekend everyone.

 

Be magnificent!

The spirit of democracy

is not a mechanical thing

to be adjusted by abolition of forms.

It requires change of heart.

Mahatma Gandhi

As ever,

 

Carolann

Remember your humanity, and forget the rest.

                    –Bertrand Russell, 1872-1970

 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

More words of wisdom from Commencement speakers:

Condoleezza Rice

Former Secretary of State

High Point University

“There’s no earthly reason that a black girl from Birmingham, Ala., should be a Soviet specialist.  But that’s what I wanted to be.  Don’t let anyone else define your passion for you because of your gender or the color of your skin.  Because of all that my grandfather and my many other ancestors did, even enduring poverty and segregation and second-class citizenship, they understood that education was a privilege, not a right.  And that it therefore conferred certain obligations.  It’s possible today to live in an echo chamber that serves only to reinforce your own high opinion  of yourself and what you think.  There is nothing wrong with holding an opinion and holding it strongly.  But at times when you are sure that you’re absolutely right, go and find somebody who disagrees.  Don’t allow yourself the easy course of the constant amen to everything that you say.”

If you destroy a free market you create a black market.  If you have ten thousand regulations you destroy all respect for the law. –Winston Churchill, 1874-1965.

 

TODAY IN HISTORY

1868 – Christopher Latham Sholes received a patent for an invention he called the “Type-Writer.”

1817 – Bank of Montreal incorporated with £250,000 capital; Canada’s oldest.

1896 – Wilfrid Laurier leads Liberals to victory in the 8th general election, beating Tupper’s Conservatives.

1974 – John Diefenbaker sworn in as an MP for a record 12th consecutive time.

1985 – Terrorist bomb downs Air India Flight 182 Boeing 747 from Toronto off the coast of Ireland.

PHOTOS OF THE DAY

Chelsea Pensioners leave after voting in the EU referendum at a polling station in London on Thursday. Toby Melville/Reuters

 

Hello Kitty face grown on a melon, which is produced in Hokkaido, is pictured at the Sanrio Co headquarters in Tokyo, Japan on Thursday.Toru Hanai/Reuters

Market Closes for June 23^rd, 2016

Market Index	Close	Change
Dow Jones	18011.07	+230.24   +1.29%
S&P 500	2113.32	+27.87   +1.34%
NASDAQ	4910.043	+76.724   +1.59%
TSX	14131.38	+127.57
		+0.91%

International Markets

Market Index	Close	Change
NIKKEI	16238.35	+172.63
		+1.07%
HANG SENG	20868.34	+73.22
		+0.35%
SENSEX	27002.22	+236.57
		+0.88%
FTSE 100	6338.10	+76.91
		+1.23%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.291	1.232
CND. 30 Year Bond	1.917	1.872
U.S.    10 Year Bond	1.7458	1.6835
U.S. 30 Year Bond	2.5547	2.4992

Currencies

BOC Close	Today	Previous
Canadian $	0.78352	0.77863
US $	1.27629	1.28431
Euro Rate 1 Euro=		Inverse
Canadian $	1.45278	0.68833
US $	1.13829	0.87851

Commodities

Gold	Close	Previous
London Gold Fix	1262.15	1264.85
Oil	Close	Previous
WTI Crude Future	49.21	48.43

Market Commentary:

Canada

By Bailey Lipschultz and Eric Lam

     (Bloomberg) — Canadian stocks rallied the most in five weeks, joining rising markets around the globe as investors awaited the outcome of today’s U.K. referendum on membership in the European Union.

     The S&P/TSX Composite Index rose 0.9 percent to 14,131.38 at 4 p.m. in Toronto, a two-week high, with eight of 10 main industries in the benchmark gaining. The index is on the way to halting a weekly losing streak at two, advancing 1.7 percent since Friday’s close. A snap-back in commodity prices has pushed the Canadian gauge to the top spot among developed equity markets this year, up 8.6 percent.

     Investors worldwide have been glued to Britain’s debate on its EU membership in recent weeks, and past polls have indicated a close race. The first voting results are expected around 7 p.m. New York time. The final ones are due at about 2 a.m. on Friday.

     U.S. shares rallied as banks and oil producers also led the S&P 500 Index higher to within 1 percent of its record, while European stocks gained to the highest in three weeks in above- average volume. The pound strengthened to its highest value this year.

     Energy companies in Canada climbed 2 percent, with Suncor Energy Inc. increasing 3.8 percent to extend a rally for a sixth session, its longest since November. Enbridge Inc. climbed 1 percent, closing at its highest level since November. West Texas Intermediate crude futures in New York gained after U.S. output and supplies fell.

     Royal Bank of Canada added 1.6 percent, the most in five weeks, as the bank plans to hire more investment advisers and may add a robo-advisory platform. Toronto-Dominion Bank and Bank of Nova Scotia rose at least 0.9 percent.

     Consumer staples companies advanced 0.9 percent. Alimentation Couche-Tard Inc. rallied 1.9 percent, paring its slide this month to 7.8 percent, while Maple Leaf Foods Inc. gained 1.6 percent.

     BlackBerry Ltd. increased 3.4 percent, the most since March, after forecasting better-than-expected profit and insisting there was a way to make its ever-shrinking phone business profitable again. Celestica Inc. advanced 0.7 percent, its best in three weeks.

     Canadian Pacific Railway Ltd. rose 1.7 percent, its first back-to-back gain in three weeks, to help boost the industrials group. Bombardier Inc. rose 1 percent after Quebec’s provincial government agreed to invest $1 billion in the C Series jetliner development program, sealing a deal that took eight months to nail down.

US

By Roxana Zega and Bailey Lipschultz

     (Bloomberg) — U.S. stocks rose, mirroring equities around the world and sending the S&P 500 Index to the strongest gain in a month, amid a U.K. referendum on its European Union membership.

     Bank stocks capped the best day in five weeks, with JPMorgan Chase & Co. and Citigroup Inc. rising more than 2.1 percent. Raw-materials producers advanced for the sixth time in seven sessions while energy companies rebounded with crude oil after slipping Wednesday for the first time in four days. Caterpillar Inc. and Boeing Co. increased more than 1.3 percent, while Microsoft Corp. gained 1.8 percent.

     The S&P 500 added 1.3 percent to 2,113.32 at 4 p.m. in New York, after two opinion polls conducted before Thursday showed a lead for the campaign to keep Britain in the EU. The index moved within 1 percent of an all-time high. The Dow Jones Industrial Average rallied 230.24 points, or 1.3 percent, to 18,011.07, the biggest gain since March 1. The Nasdaq Composite Index added 1.6 percent, the most in a month. About 6.4 billion shares traded hands on U.S. exchanges, 7 percent below the three-month average.

     “The markets have remained relatively quiet for the most part because ahead of any vote, it’s just a waiting game,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee. “Traders have set their stance either way and will wait and see what the result is.”

     Investors worldwide have been glued to Britain’s debate on its EU membership in recent weeks, and past polls have indicated a close race. The first voting results are expected around 7 p.m. New York time, with the final ones due at about 2 a.m. on Friday.

     Among the information investors will digest tonight, the Federal Reserve released results of its bank stress tests. Announced after the close of trading Thursday, the tests found the 33 biggest banks all have enough capital to weather a severe economic shock. The examination runs through hypothetical scenarios, as regulators push lenders to build up capital buffers to prevent a repeat of the 2008 financial crisis. The banks included Well Fargo & Co., JPMorgan & Chase Co. and Morgan Stanley, which trailed the rest of Wall Street in a key measure of leverage.

     The S&P 500’s rally Thursday followed the index’s first retreat in three days, and a 15 percent jump in the CBOE Volatility Index amid fragile sentiment before the U.K. vote. The gauge of market turbulence known as the VIX reversed today, tumbling nearly 19 percent, the most since October 2013. A Goldman Sachs Group Inc. basket of the most shorted shares in the Russell 3000 Index rose the most in two months.

     Among the stocks providing the biggest lift today, Visa Inc., Amazon.com Inc. and General Electric Co. advanced at least 1.3 percent, with GE reaching a two-month high. Chevron Corp. and Intel Corp. rose more than 2.1 percent.

     “People have already taken positions ahead of the vote,” said Patrick Spencer, equities vice chairman at Robert W. Baird & Co. in London. His firm manages $151 billion. “Markets hate uncertainty and tomorrow we’ll finally have certainty — we’ll know which way we’re going. In the U.S., we’re back to that Goldilocks scenario. You’ve got reasonable growth, but not so strong so as to raise rates.”

     The main U.S. equity benchmark has struggled to top an all- time high reached 13 months ago, after closing within 0.6 percent of the mark earlier in June. The S&P 500 surged as much as 16 percent from a 22-month low in February amid rebounding oil prices and improving economic data, though its momentum has been challenged by successive quarters of declining corporate profits, recent signs of slowing job gains and concerns that central-bank efforts to bolster growth are losing their efficacy.                         

     Those worries were roused last week after the Federal Reserve signaled less optimism on the economic outlook, scaling back its projections for the pace of future interest-rate increases amid concerns about slower job growth and the U.K.’s potential EU exit. In testimony to lawmakers this week, Fed Chair Janet Yellen indicated a cautious and uncertain view of the economy.

     Traders are now pricing in even odds for a rate increase by December, up from 34 percent a week ago in the wake of the Fed meeting. Chances for higher borrowing costs in September have jumped to 33 percent from 16 percent last Thursday.

     As investors and policy makers assess incoming data to judge the path for rates, a report today showed fewer Americans than forecast filed for unemployment benefits last week, adding to evidence that the labor market is healthy and stable. Separate data showed purchases of new homes declined in May from an eight-year high as the housing market continued to display the choppy progress that’s been a hallmark of the recovery.

     All of the S&P 500’s 10 main industries rose in Thursday’s trading, with financials climbing 2.1 percent, the most in two months. Raw-materials, technology and energy shares added at least 1.5 percent. Utilities were the laggards, rising 0.3 percent.

     Leucadia National Corp. and Charles Schwab Corp. were the strongest performers among financials in the benchmark, with gains of more than 4.7 percent. Comerica Inc. and Citigroup rose at least 4.1 percent. The KBW Bank Index increased 2.9 percent, the most since May 18.

     Leading the rally in the tech group, Micron Technology Inc. jumped 10 percent to a five-month high after Nomura Securities upgraded the shares to buy from the equivalent of sell, highlighting memory supply shortages and “firmer” prices. Western Digital Corp. gained 5.1 percent to the highest since March 22, and Qorvo Inc. increased 4.7 percent to its strongest level in six months.

     The consumer staples group climbed to a fresh record and approached a sixth monthly increase in the last seven. Archer- Daniel-Midlands Co., Mondelez International Inc. and Walgreens Boots Alliance Inc. added more than 1.5 percent. Whole Foods Market Inc. increased 1 percent, snapping an 11-day losing streak, the longest since 1998.

     Airlines slipped for a second day, led lower by Southwest Airlines Co.’s 1.7 percent slide. The carrier will postpone delivery of 67 Boeing Co. 737 Max 8 aircraft by as many as six years, pushing $1.9 billion of spending on the planes into the next decade as it focuses on near-term technology and operational improvements. Delta Air Lines Co. lost 0.6 percent.
 

Have a wonderful evening everyone.

 

Be magnificent!

The end to be sought is human happiness combined with full mental and moral growth.

This end can be achieved under decentralization.

Centralization as a system is inconsistent with a non-violent structure of society.

Mahatma Gandhi

 

As ever,

 

Carolann

 

The wicked flee when no man pursueth,

but the righteous are as bold as a lion.

                                 -Proverbs 28:1

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

The Arts, News:

FRENCH ART COMES TO YOUR BROWSER
Paris Musées, a group of museums including the National Museum of Modern Art in  Paris and the Carnavalet Museum, recently made many works available for viewing online.  Browse at your leisure or take a “tour,” which groups together pieces from different museums based on various themes.   Check it out at http://parismuseescollections.paris.fr.

NEW DRAMA FROM JULIAN FELLOWES
“Downton Abbey” creator Julian Fellowes has written another period drama for TV.  Julian Fellowes Presents Doctor Thorne tells the story of Mary Thorne, an impoverished young woman who is raised by her uncle.  It’s streaming on Amazon Prime.

WATCHING THE PARTY
One-man-band Andy Shauf is The pride of Regina, Saskatchewan.  The party is his engaging new album, and it is aptly named….Comparisons to Elliott Smith and harry Nilsson are fair, but late-period Brian Wilson also comes to mind.

SARAH JAROSZ
Texan teenager Sarah Jarosz, three years since graduating with honors from the New England Conservatory, has released her fourth record Undercurrent, which boasts rich contrasts, with a song about heart-break,House of Mercy giving way to the summery love song Green Lights in which Jarosz’s voice floats, feather-like, over breezy acoustic sounds.

                                       -from “Staff Picks,” CSM, June 13, 2016.

On June 22, 1940, during World War II, Adolf Hitler gained a stunning victory as France was forced to sign an armistice eight days after German forces overran Paris. Go to article »

1813 – Laura Secord Warns British of an American Attack
1976 – House of Commons votes to abolish the death penalty with a six-vote majority.

THE SIMPLE LIFE

missing somebody……..call
wanna meet up…………invite
wanna be understood…explain
have a question…………ask
don’t like something…..say it nicely
like something…………..declare it
want something…………ask for it
stressed……………………let go
love someone…………….say it

PHOTOS OF THE DAY

A ‘Vote Remain’ banner being towed by an aircraft is seen behind the London Eye in London, Britain on Wednesday. Toby Melville/Reuters

A Belgium fan wears a model of the Atomium on his head in Nice, France on Wednesday. Wolfgang Rattay/Reuters

Market Closes for June 22^nd, 2016

Market Index	Close	Change
Dow Jones	17780.83	-48.90   -0.27%
S&P 500	2085.45	-3.45   -0.17%
NASDAQ	4833.320	-10.443   -0.22%
TSX	14003.81	-8.51
		-0.06%

International Markets

Market Index	Close	Change
NIKKEI	16065.72	-103.39
		-0.64%
HANG SENG	20795.12	+126.68
		+0.61%
SENSEX	26765.65	-47.13
		-0.18%
FTSE 100	6261.19	+34.64
		+0.56%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.232	1.252
CND. 30 Year Bond	1.872	1.884
U.S.    10 Year Bond	1.6835	1.7059
U.S. 30 Year Bond	2.4992	2.5096

Currencies

BOC Close	Today	Previous
Canadian $	0.77863	0.78061
US $	1.28431	1.28104
Euro Rate 1 Euro=		Inverse
Canadian $	1.45084	0.68926
US $	1.12967	0.88522

Commodities

Gold	Close	Previous
London Gold Fix	1264.85	1272.60
Oil	Close	Previous
WTI Crude Future	48.43	48.85

Market Commentary:

NUMBER OF THE DAY
140

The approximate number of media companies and celebrities Facebook has signed contracts with to create videos for its nascent live-streaming service. The social network has agreed to make payments to video creators totaling more than $50 million.

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little-changed for a second day, with a drop in oil prices offsetting a rally in gold producers, as investors speculated on the outcome of the U.K. referendum on European Union membership Thursday.

     The S&P/TSX Composite Index fell 0.1 percent to 14,003.81 at 4 p.m. in Toronto. The index has climbed 0.7 percent this week, poised to halt a two-week slide. The gauge is almost half a percentage point ahead of New Zealand as the top-performing developed market in the world with a 7.6 percent gain for the year, according to data compiled by Bloomberg.

     Global stocks advanced a fourth day, the longest winning streak in nearly two weeks with bookmakers’ odds now implying about a 28 percent chance Britons will vote to leave the EU. The pound touched the highest in five months before paring gains and the U.K. benchmark FTSE 100 Index has erased its losses for the month.

     “It goes without saying that we would get a huge relief rally with a ‘Remain’ vote,” David Rosenberg, Toronto-based chief economist and strategist at Gluskin Sheff & Associates Inc., said in a report to clients Wednesday. “And given how much optimism has been priced in over the past few days, a likely equally severe selloff in risk assets if the Brits do decide to leave the EU.”

     In Canada, shares of companies most exposed to the European market including Brookfield Asset Management Inc., CGI Group Inc. and Great-West Lifeco Inc. have jumped 1.4 percent so far this week, outperforming the broader S&P/TSX, according to data compiled by Bloomberg. The group of 19 stocks still trails peers in the benchmark with a 3.1 percent gain for the year.  

     Canadian retailers meanwhile are off to their best start since 2010 as retail sales jumped 0.9 percent in April on a rebound at gas stations and building-material stores to recover all the losses from a revised drop in March, according to data from Statistics Canada. Sales so far in the year are up 5.3 percent. Canadian Tire Corp. added 0.3 percent.

     Energy producers dropped 1 percent, offsetting a 1.3 percent rally in raw-materials producers as five of 10 industries in the S&P/TSX declined. Canadian Pacific Railway Ltd. added 2.9 percent after the stock was raised to a strong buy at Raymond James.

     Canadian Natural Resources Ltd. and Encana Corp. dropped more than 2 percent. Oil declined for a second day in New York as government data showed crude stockpiles dropped less than expected while imports increased.     Canadian shares remain more expensive relative to their U.S. peers. The S&P/TSX now trades at 21.5 times earnings, about 11 percent higher than the 19.3 times valuation of the S&P 500 Index.

     Raw-materials and energy producers have fueled the rebound in Canadian equities this year as the S&P/TSX stormed back into a bull market earlier this month to halt a brief bear market of less than five months. Commodities prices have bounced back led by gains in gold and a 90 percent rally in crude from the lowest levels in 12 years back in February. A gauge of raw-materials producers is up 43 percent to lead the S&P/TSX.

US

By Bailey Lipschultz and Camila Russo

     (Bloomberg) — U.S. stocks slipped amid fragile sentiment, as traders weighed the probability of the U.K. voting to remain in the European Union a day before the referendum.

     Equities lost momentum following back-to-back gains as polls released today quelled recent optimism Britain will stay in the EU. Tesla Motors Inc. sank the most in two years after offering to buy SolarCity Corp, and McDonald’s Corp. fell to a three-month low on an analyst downgrade of the stock. Energy producers slipped with oil, falling for the first time in four sessions, while the health-care group advanced as biotechnology shares rebounded.

     The S&P 500 Index declined 0.2 percent to 2,085.45 at 4 p.m. in New York, after erasing a 0.5 percent gain. The Dow Jones Industrial Average lost 48.90 points, or 0.3 percent, to 17,780.83, wiping out a 90-point climb. A gauge of volatility jumped the most since Brexit concerns escalated more than a week ago. The Nasdaq Composite Index fell 0.2 percent. About 6.3 billion shares traded hands on U.S. exchanges, 9 percent below the three-month average.

     “The markets at the moment are held hostage to the prospects of the U.K. leaving,” said Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, which manages $54 billion. “With the vote happening tomorrow, I suspect that there will be some delicate positioning in anticipation of it, but nothing particularly dramatic. I can’t envision a scenario where the markets will rally significantly. If the referendum ends up leaning toward a Brexit, those holding riskier assets would be caught.”

     The CBOE Volatility Index jumped almost 15 percent Wednesday to 21.17, erasing an early 3.5 percent drop amid renewed anxiety before Britain’s EU vote. It was the gauge’s biggest climb since a two-day, 43 percent climb almost two weeks ago. The measure of market turbulence known as the VIX is up 49 percent in June and headed toward its biggest monthly climb since a record surge in August.

     The S&P 500 fell from its highest since June 10, closing Wednesday 2.1 percent below a record set 13 months ago. After worries that the U.K. would secede spurred the gauge’s worst weekly retreat since April, polls showing the “Remain” camp gaining ground boosted shares in the prior two days. Still, it looks too close to call. While Oddschecker data show betting companies see only a roughly one-in-four chance of Britain leaving the EU, polls have been split on the outcome.

     In addition to the looming vote, concern that central-bank efforts are losing their potency, valuations stuck above the three-year average and successive quarters of declining profits weighed on stocks after the S&P 500 two weeks ago came within 0.6 percent of its all-time high. Federal Reserve Chair Janet Yellen finished two days of testimony to lawmakers after yesterday signaling a cautious and uncertain view of the economy.

     The International Monetary Fund cut its forecast for U.S.growth this year, urging the Fed to lean toward modestly overshooting its inflation target in considering whether the economy can handle higher interest rates. A report today eased some worries, as sales of previously owned homes climbed in May to the highest level in more than nine years, indicating demand for residential real estate remains robust.

     The Fed last week scaled back its projections for the pace of future interest-rate increases amid concerns about slower job gains and the U.K.’s potential EU exit. Traders have reduced their wagers on higher borrowing costs, pricing in less than even odds of a move at least until February 2017.

     “Volumes in the U.S. are pretty thin as everybody is waiting for the vote before doing anything major,” said John Plassard, a senior equity-sales trader at Mirabaud Securities in Geneva. “There might also be some short covering right before the vote as nobody would want to be short if remain wins.”

     Among the S&P 500’s 10 main industries, energy companies lost 0.6 percent, with crude sliding after U.S. government data showed stockpiles declined less than expected last week amid a jump in imports. Utilities, technology and industrial stocks also fell at least 0.3 percent. Health-care was the top performer as the group alternated between daily gains and losses for a seventh session.

     Drug developer Regeneron Pharmaceuticals Inc. rose 2 percent, ending a four-day losing streak and 10 declines in the prior 11 sessions. Celgene Corp. and Bristol-Myers Squibb Co. added more than 1.4 percent. Health-care had been the S&P 500’s worst-performing group since the benchmark hit an almost 10- month high two weeks ago. The Nasdaq Biotechnology Index rose for the second time in three days, up 0.7 percent after ending on Monday its worst losing streak since 1996.

     Marathon Oil Corp. and Anadarko Petroleum Corp. fell at least 2 percent, while Chevron Corp. lost 0.9 percent to pace declines in energy. Wednesday’s retreat halted the group’s longest winning streak in two months.

     Adobe Systems Inc. sank 5.7 percent, the most since February, to weigh on technology shares. The software company forecast revenue in the current quarter that may miss analysts’ estimates, signaling slowing momentum for its cloud-based products. HP Inc. tumbled 5.4 percent after lowering its free cash flow outlook as it reinvests proceeds from asset divestitures back into its printing business.

     FedEx Inc.’s 4.5 percent drop was the biggest drag on industrials in the benchmark. The world’s largest cargo airline fell the most in 10 months after disappointing investors by not providing more specifics on how the $4.8 billion acquisition of Dutch shipping company TNT Express will affect earnings.
 

Have a wonderful evening everyone.

 

Be magnificent!

It is quite proper to resist and attack a system but,

to resist and attack its author is tantamount to resisting and attacking oneself.

For we are all tarred with the same brush.

Mahatma Gandhi

As ever,

 

Carolann

 

Be kind, for everyone you meet is fighting a harder battle.

                                   -Plato, c.428 BCE-c. 348 BCE

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7