Category: Events

Dear Friends,

Tangents:

POEM: Aristotle wrote in “The Poetics” that poets have “an eye for resemblances.”  At first, the matter-of-fact statement of likeness in this poem made me laugh.  Then it made me think:  What if we all walked through the world with such an eye, looking at the inanimate objects that surround us?  What might we see that we relate to, and resemble? –Matthew Zapruder, NY Times, April 19, 2016.

The Pier Leaps Out

 By Monica Fambrough

The pier leaps out
toward the ocean
with its skinny boards stretching
dangerous little gaps
to reveal beneath the gangway
some blackening sea lions,
and I think,
I can relate to that pier.

Matthew Zapruder is the author of four collections of poetry, most recently “Sun Bear.”  He teaches at Saint Mary’s College of California and is editor at large at Wave Books.  Monica Fambrough is a poet whose debut collection, “Softcover,” was published last fall by Natural History Press.

PHOTOS OF THE DAY

Terry Hutt, a royal fan stands in front of the castle in Windsor, England, Wednesday. Royal fans are gathering in Windsor ahead of Thursday’s celebrations for the 90th birthday of Britain’s Queen Elizabeth II. Kirsty Wigglesworth/AP

President Barack Obama and Saudi Arabia’s King Salman walk to President Obama’s motorcade after meeting at Erga Palace in Riyadh, Saudi Arabia, Wednesday. The president began a six day trip to talk, on a broad range of issues, including efforts to rein in the Islamic State group. Carolyn Kaster/AP

Market Closes for April 20^th, 2016

Market Index	Close	Change
Dow Jones	18096.27	+42.67   +0.24%
S&P 500	2102.40	+1.60   +0.08%
NASDAQ	4948.129	+7.799   +0.16%
TSX	13911.29	+44.01
		+0.32%

International Markets

Market Index	Close	Change
NIKKEI	16906.54	+32.10
		+0.19%
HANG SENG	21236.31	-199.90
		-0.93%
SENSEX	25844.18	+27.82
		+0.11%
FTSE 100	6410.26	+4.91
		+0.08%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.335	1.328
CND. 30 Year Bond	2.032	2.013
U.S.    10 Year Bond	1.8450	1.7851
U.S. 30 Year Bond	2.6545	2.5936

Currencies

BOC Close	Today	Previous
Canadian $	0.79027	0.79025
US $	1.26539	1.26542
Euro Rate 1 Euro=		Inverse
Canadian $	1.42937	0.69961
US $	1.12958	0.88528

Commodities

Gold	Close	Previous
London Gold Fix	1252.00	1255.40
Oil	Close	Previous
WTI Crude Future	42.63	41.08

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a third day, trading at a five-month high, as the nation’s lenders advanced and energy producers reversed losses after oil rebounded on U.S. data showing output fell, while silver producers extended gains.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge added 0.3 percent to 13,911.29 at 4 p.m. in Toronto, the highest level since October. The benchmark gauge is one of the best-performing developed markets in the world this year with a 6.9 percent gain.

     Bank of Nova Scotia and Toronto-Dominion Bank climbed at least 0.9 percent as financial services stocks increased 0.7 percent, contributing the most to gains in the S&P/TSX. Seven of 10 industries in the index advanced on trading volume about 26 percent higher than the 30-day average.

     Raw-materials producers declined 0.9 percent as declines among gold producers offset extended gains among silver and base metals mining companies. Silver advanced to a May high a day after entering a bull market, extending gains this month to 11 percent. Precious metals have been popular this year, with gains in both gold and silver exceeding 18 percent. Silver is up 24 percent since Dec. 14, meeting the common definition of a bull market.

     Cenovus Energy Inc. and PrairieSky Royalty Ltd. rallied at least 3.3 percent to lead energy producers to a 0.3 percent advance. Crude in New York rose 3.8 percent, climbing to the highest level in almost five months. Oil output fell to 8.95 million barrels a day in the week ended April 15, the lowest since October 2014, while rig counts also slipped to a November 2009 low last week. OPEC members and other producers plan to meet in Russia, possibly in May, to again discuss a potential production cap, Iraq’s Deputy Oil Minister said.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 17 percent recovery for the S&P/TSX from a low on Jan. 20. The Canadian benchmark now trades at 22.1 times earnings, about 15 percent higher than the 19.2 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Canadian Pacific Railway Ltd. lost 0.7 percent, after falling as much as 3.7 percent. The railroad operator reported first-quarter revenue slipped 4 percent to C$1.59 billion from year-ago levels. While Canadian Pacific posted profit ahead of consensus estimates while also boosting its dividend, investors were perhaps looking for a larger buyback than the company unveiled, BMO Capital Markets analyst Fadi Chamoun said in a note. Canadian Pacific will buy back as much as C$1.31 billion in stock.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks edged higher as an oil rally lifted energy producers, with the Standard & Poor’s 500 Index holding at a four-month high amid a slate of corporate earnings that gave investors little clear direction.

     An afternoon rally stumbled in the final hour of trading to leave equities little changed, wiping out much of the gains sparked by a rebound in crude. Oil jumped after Iraq’s oil minister said major OPEC and other oil producers will meet possibly next month in a new push to freeze output. Meanwhile, a better-than-forecast profit from Discover Financial Services helped offset underwhelming results at Coca-Cola Co.

     The S&P 500 gained 0.1 percent to 2,102.40 at 4 p.m. in New York, after rising as much as 0.5 percent and briefly touching the highest level since July. The Dow Jones Industrial Average added 42.67 points, or 0.2 percent, to 18,096.27, trimming a 114-point climb. The gauge held at a nine-month high. The Nasdaq Composite Index increased 0.2 percent. About 7.5 billion shares traded hands on U.S. exchanges, 7.4 percent below the three- month average.

     “There’s been no bearish catalyst that’s surfaced to really knock things down and earnings are spilling in and going as expected,” said Nick Kalivas, senior equity product strategist at Invesco PowerShares in Downers Grove, Illinois, which has about $100 billion in its funds. “We’re now a couple of heartbeats off the all-time high and that’s creating performance anxiety among fund managers, causing people to think the picture’s not as glum. It’s keeping an underlying bid in the market.”

     Discover shares had the biggest jump since 2011 amid gains in credit-card spending. UnitedHealth Group Inc. rose more than 2.1 percent for a second day after its plans to exit Obamacare in 16 states to curb losses. Coke fell the most since August with earnings mostly in line with expectations, disappointing investors expecting a stronger turnaround for the beverage maker. Boeing Co. sank 1.6 percent after Bank of America Corp. downgraded the stock.

     The S&P 500 has rallied 15 percent since reaching a 22- month low in February and is up 2.9 percent for the year, bolstered by a recovery in oil prices, signs of stabilization in China’s slowdown and optimism central bankers will continue efforts to support growth. The gauge is also 1.3 percent away from a record reached last May.

     Still, the gains in equities have come as earnings are forecast to slide at the steepest pace since the financial crisis. Analysts project first-quarter profits shrank 9.5 percent at S&P 500 firms, compared with estimates for flat earnings growth at the start of the year. Microsoft Corp., General Motors Co. and Google parent Alphabet Inc. are among 36 companies in the index scheduled to report on Thursday.

     As policy makers and investors scrutinize data to judge the strength of the U.S. economy and the outlook for interest rates, a report this morning showed purchases of previously owned homes rose more than projected in March, indicating resilience in demand heading into the spring selling season. Traders are pricing in no chance the Federal Reserve will raise rates at its meeting next week, with December now the first month with at least even odds for a boost.

     In Wednesday’s trading, the Chicago Board Options Exchange Volatility Index rose 0.3 percent to 13.28, snapping its longest streak of declines in almost two months. The measure of market turbulence known as the VIX is holding near the lowest level since August. A Goldman Sachs gauge of the most shorted stocks had the biggest climb in a week amid its longest stretch of gains since March 7.

     Energy producers in the S&P 500 pushed a three-day advance to 4.3 percent as crude rallied for a second day. The group shook off a morning drop as Chevron Corp. increased 1.2 percent, while Schlumberger Ltd. and Devon Energy Corp. gained more than 1.8 percent. West Texas Intermediate crude futures rose 3.8 percent, wiping out a 3 percent retreat to close above $42 a barrel.

     Discover Financial surged 8.2 percent to a four-month high to lead the benchmark’s financial group. Competitor American Express Co. added 2.3 percent to a three-month high before its earnings report. Banks in the S&P 500 rose for a third day, trimming 2016 losses to less than 6.5 percent from as much as 23 percent. Bank of America climbed 3.3 percent, rising for the eighth time in nine days and adding 16 percent during that span. The stock is still down about 11 percent this year.

     U.S. Bancorp. gained 2 percent, even as the nation’s largest regional lender said profit dropped 3.1 percent in the first quarter as provisions for bad loans surged 25 percent, driven by a jump in downgrades on energy-related credits.

     Yahoo! Inc. increased 4.2 percent to the highest since July, buoying the technology group, after Chief Executive Officer Marissa Mayer said the company is moving swiftly to consider offers to buy its Web operations. First-quarter revenue also exceeded analysts’ estimates. Intel Corp. climbed 1.3 percent as the semiconductor company plans to cut 12,000 jobs and shift focus to higher-growth areas, such as chips for data center machines and Internet-connected devices.

     Also within chipmakers, Linear Technology Corp. rallied 4 percent after its quarterly sales outpaced estimates, while its outlook for the current quarter also beat some forecasts. Broadcom Ltd. and Texas Instruments Inc. advanced at least 1.1 percent.                          

     Coca-Cola was the strongest drag today on the S&P 500, with consumer staples joining utilities as the biggest losers among the S&P 500’s 10 main industries. Coke slid 4.8 percent to cut its year-to-date gain by more than half. The shares had reached an all-time high two weeks ago. Hershey Co. lost 3.1 percent after Bank of America downgraded the shares to the equivalent of sell, citing in part sluggish U.S. chocolate sales. Procter & Gamble Co. slid 2.1 percent, the steepest drop since Feb. 11.

     Utilities tumbled 2.4 percent to a one-month low, relinquishing the mantle as the S&P 500’s top-performing group this year to phone companies. NextEra Energy Inc. and Dominion Resources Inc. dropped more than 2.1 percent.

     Among other companies moving on corporate news, Lexmark International Inc. added 9.4 percent after the printer maker accepted a $3.6 billion takeover offer from a group headed by China’s Apex Technology.

 

Have a wonderful evening everyone.

 

Be magnificent!

Selfishness in man is a beginning.

Rabindranath Tagore

As ever,

 

Carolann

 

The evil of the world is made possible by nothing

but the sanction you give it.

                                  -Ayn Rand, 1905-1982

 

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, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Workmen install a new mural by Frederick Wimsett of Britain’s Queen Elizabeth II to mark her birthday celebrations in central London on Tuesday. The longest-reigning monarch in British history turns 90 on Thursday. Alastair Grant/AP

A worker cleans a statue of South Korean Adm. Yi Sun-sin at Gwanghwamun Plaza in Seoul, South Korea, Monday. Adm. Yi was a Korean hero who defeated the Japanese invaders in the 16th century. Ahn Young-joon/AP

Market Closes for April 19^th, 2016

Market Index	Close	Change
Dow Jones	18053.60	+49.44   +0.27%
S&P 500	2100.77	+6.43   +0.31%
NASDAQ	4940.332	-19.685   -0.40%
TSX	13864.96	+145.14
		+1.06%

International Markets

Market Index	Close	Change
NIKKEI	16874.44	+598.49
		+3.68%
HANG SENG	21436.21	+274.71
		+1.30%
SENSEX	25816.36	+189.61
		+0.74%
FTSE 100	6405.35	+51.83
		+0.82%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.328	1.301
CND. 30 Year Bond	2.013	1.994
U.S.    10 Year Bond	1.7851	1.7711
U.S. 30 Year Bond	2.5936	2.5799

Currencies

BOC Close	Today	Previous
Canadian $	0.79025	0.78165
US $	1.26542	1.27935
Euro Rate 1 Euro=		Inverse
Canadian $	1.43753	0.69564
US $	1.13589	0.88037

Commodities

Gold	Close	Previous
London Gold Fix	1255.40	1234.30
Oil	Close	Previous
WTI Crude Future	41.08	39.78

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks gained a second day, extending a five-month high, as raw-materials producers rallied with silver entering a bull market and gold advancing a third day.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge added 1.1 percent to 13,867.28 at 4 p.m. in Toronto, the highest level since Oct. 23. The benchmark gauge remains one of the best-performing developed markets in the world this year with a 6.6 percent gain. Trading volume was about 8 percent higher than the 30-day average.

     Silver Wheaton Corp. and First Majestic Silver Corp. jumped at least 7.9 percent as resource shares led gains out of 10 industries in the S&P/TSX. All but seven stocks in the 45-member group advanced with gold and copper producers also gaining.

     Silver futures for May delivery gained 4.4 percent in New York to settle at $16.972 an ounce, a more-than 20 percent gain from the most recent low in December to meet the common definition of a bull market. Gold for June delivery rose 1.4 percent, while copper on the London Metal Exchange rose a second day to a three-week high.

     All but one energy stock in the S&P/TSX increased. Crude in New York rose for the first time in five days, climbing 3.3 percent in New York. The labor stoppage in Kuwait that initially slashed daily output by as much as 1.7 million barrels entered a third day, offsetting earlier concern after OPEC members were unable to come to an accord on a possible production freeze. Crescent Point Energy Corp. was among the biggest gainers in the group, rallying 10 percent.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 17 percent recovery for the S&P/TSX from a low on Jan. 20. The Canadian benchmark now trades at 22.1 times earnings, about 15 percent higher than the 19.2 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Gluskin Sheff & Associates Inc. added 4.1 percent to a three-day rally after Scotia Capital analyst Phil Hardie boosted his rating for the stock to sector outperform, or the equivalent of a buy. The stock, which is still down 11 percent this year, looks oversold relative to its value, Hardie said in the note.

     Telecommunications stocks lost 0.7 percent led by Rogers Communications Inc. The cellphone, Internet and TV services provider slipped 1.9 percent after posting first-quarter earnings short of analysts’ estimates.

US

By Oliver Renick

     (Bloomberg) — The Standard & Poor’s 500 Index rose Tuesday, extending a four-month high as commodity producers rallied in a seesaw session amid mixed results in corporate earnings.

     Raw-material companies surged to the highest in nine months, while energy shares jumped on crude’s first gain in five days. Johnson & Johnson, Goldman Sachs Group Inc. and UnitedHealth Group Inc. advanced at least 1.5 percent amid better-than-estimated earnings, countering Netflix Inc.’s biggest drop since 2014 and the steepest slide for International Business Machines Corp. since October as results disappointed. Illumina Inc. plunged 23 percent after the gene-sequencing company’s revenue missed predictions.

     The S&P 500gained 0.3 percent to 2,100.80 at 4 p.m. in New York, closing above the 2,100 mark for the first time since Dec. 1. The Dow Jones Industrial Average added 49.44 points, or 0.3 percent, to 18,053.60, extending a nine-month high. The Nasdaq Composite Index slid 0.4 percent under the drag from Netflix and Illumina. About 7.1 billion shares traded hands on U.S. exchanges, 12 percent below the three-month average.

     “The recession talk from February is off the table and we’re also seeing stability in China which is helping global commodities in general,” said Mark Kepner, an equity trader at Themis Trading LLC in Chatham, New Jersey, in a phone interview. “‘I would’ve never thought I’d come into work with Netflix and IBM down and the S&P 500 up, but the momentum just keeps building.”

     Equities surged in morning trading with the Dow rising nearly 100 points and then lost momentum at midday as declines in IBM and Netflix reached their worst levels. Both the S&P 500 and Dow briefly erased a climb before regaining their footing in the afternoon as commodity producers and banks added to their gains.

     The S&P 500 has rebounded 14 percent since its February low, helped by a rebound in oil prices, signs of stabilization in China’s slowdown and optimism central-bank policies will remain supportive of growth. After erasing 2016 losses, the benchmark is less than 1.5 percent from a record reached last May. The Russell 2000 on Monday erased its loss for the year, wiping out a drop of as much as 16 percent.

     While investors’ reaction to corporate earnings has been mostly positive so far, they aren’t shy about punishing companies that don’t deliver. Netflix tumbled 13 percent after its forecast indicated weakening subscriber growth in the second quarter. IBM retreated 5.6 percent as its second-quarter profit estimate was short of projections. Philip Morris International Inc. lost 1.3 percent after its earnings fell short of estimates.

     Analysts project first-quarter profits for companies in the benchmark equity index shrank 9.5 percent. With only about 10 percent of S&P 500 members having reported, 58 percent have exceeded revenue forecasts while 78 percent have beaten earnings predictions.

     Along with companies’ quarterly results, policy makers and investors are scrutinizing data to discern the strength of U.S. growth and the outlook for interest rates. A report today showed new-home construction slumped more than projected in March. Permits, a proxy for future construction, also dropped. Traders are pricing in zero chance the Federal Reserve will raise rates at its meeting next week, while the first month with at least even odds for a boost is December.

     Fed Bank of Boston President Eric Rosengren said in a speech Monday the market’s outlook for rates is too dovish, implying a path for increases that “would likely result in an overheating that necessitates the Fed eventually raising interest rates more quickly than is desirable,” jeopardizing growth.

     Among the S&P 500’s 10 main industries, raw-materials and energy shares were the strongest performers today, rising at least 1.8 percent. Financials climbed 1.1 percent, boosted by banks. Technology companies lost 0.6 percent under IBM’s drag. The Chicago Board Options Exchange Volatility Index slipped 0.8 percent to 13.24, with the gauge of market turbulence known as the VIX hovering near an eight-month low.

     Raw-material companies jumped the most in a month as the dollar sank to the lowest since June, boosting the value of commodities priced in the currency. Copper miner Freeport- McMoRan Inc. rallied 9 percent to a five-month high, and Newmont Mining Corp. added 4.9 percent as gold climbed. Fertilizer maker Mosaic Co. increased 6.5 percent, its strongest since February.

     In energy, Transocean Ltd. surged 9.5 percent, the most in more than six weeks, and Diamond Offshore Drilling Inc. gained 6.3 percent to lead the rally. Chevron Corp. added 1.8 percent to reach a 10-month high. West Texas Intermediate crude futures increased 3.3 percent to top $41 a barrel.

     Banks in the benchmark climbed for the seventh time in eight days, rising to a three-month high. Comerica Inc. jumped 4.2 percent, to the highest this year even as its earnings missed estimates and its outlook was little changed. Wells Fargo & Co. and Bank of America Corp. increased more than 1.9 percent.

     The tech group posted the biggest retreat since April 7, when the Nasdaq 100 Index lost 1.5 percent. IBM capped the steepest slide since October, and EBay Inc. dropped 4 percent after Morgan Stanley cut its rating and target price on the shares. Qorvo Inc. and Skyworks Solutions Inc. fell at least 3.3 percent after downgrades from Raymond James & Associates Inc.

     Viacom Inc. was the third-biggest loser in the S&P 500, contributing with Netflix to the decline in consumer discretionary shares. The media company dropped 8.3 percent, the most in two months as a fee dispute with Dish Network Inc. escalated. Amazon.com Inc. fell 1.2 percent, snapping a seven- day winning streak that was the longest in 20 months.

 

Have a wonderful evening everyone.

 

Be magnificent!
 

 “The journey of a thousand miles begins with one step.” Lao Tzu

As ever,

 

Karen
 

 “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” John Quincy Adams

 

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, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

An Israeli woman takes a selfie in a buttercup field near Kibbutz Nir Yitzhak in southern Israel, just outside the Gaza Strip, on Monday. Amir Cohen/Reuters

Britain’s Prince William and his wife Catherine, the Duchess of Cambridge, pose at the Taj Mahal in Agra, India, Saturday. Adnan Abidi/Reuters

Market Closes for April 18^th, 2016

Market Index	Close	Change
Dow Jones	18004.16	+106.70   +0.60%
S&P 500	2094.34	+13.61   +0.65%
NASDAQ	4960.017	+21.801   +0.44%
TSX	13719.82	+82.62
		+0.61%

International Markets

Market Index	Close	Change
NIKKEI	16275.95	-572.08
		-3.40%
HANG SENG	21161.50	-154.97
		-0.73%
SENSEX	25816.36	+189.61
		+0.74%
FTSE 100	6353.52	+9.77
		+0.15%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.301	1.267
CND. 30 Year Bond	1.994	1.971
U.S.    10 Year Bond	1.7711	1.7518
U.S. 30 Year Bond	2.5799	2.5586

Currencies

BOC Close	Today	Previous
Canadian $	0.78165	0.77988
US $	1.27935	1.28225
Euro Rate 1 Euro=		Inverse
Canadian $	1.44692	0.69112
US $	1.13098	0.88419

Commodities

Gold	Close	Previous
London Gold Fix	1234.30	1227.10
Oil	Close	Previous
WTI Crude Future	39.78	40.36

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, reversing an earlier loss to close at a five-month high as gold producers gained a second day amid demand for haven assets, while energy shares wiped out declines.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge added 0.6 percent to 13,719.82 at 4 p.m. in Toronto, the highest close since Oct. 29. The increase extended a rally after the index advanced by the most last week since mid-March. The S&P/TSX remains one of the best-performing developed markets in the world this year with a 5.5 percent gain. Trading volume was 15 percent lower than the 30-day average.

     West Texas Intermediate crude slipped 1.7 percent in New York, clawing back much of an earlier decline that reached as much as 6.8 percent as traders turned their attention to a labor strike in Kuwait that cut output for a second day. Kuwait, the fourth-largest member of OPEC, has seen its output cut by about 60 percent due to the worker strike.

     A meeting between the world’s largest oil producers in Doha on Sunday, which dragged on for more than 10 hours beyond its initially scheduled conclusion, finished with no final accord. Saudi Arabia maintained its stance that it wouldn’t restrain its production without commitments from other producers including Iran to do the same, a move Iran is resisting. OPEC and non-OPEC producers may meet again in June, according to a Nigerian minister.

     Energy producers in the S&P/TSX added 1.4 percent, after retreating as much as 1.8 percent. Canadian Natural Resources Ltd. and Enbridge Inc. added at least 1.9 percent to lead the industry higher in mixed trading, with 36 of 50 companies in the S&P/TSX Energy Index in positive territory.

     Yamana Gold Inc. added 2.9 percent as raw-materials producers advanced 1.1 percent. Gold rose a second day as the selloff in oil increased demand for the precious metal as a haven. Teck Resources Ltd. and First Quantum Minerals Ltd. climbed more than 6.9 percent as copper rebounded from a loss while zinc climbed for a second session as stockpiles in London dropped to the lowest since 2009.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers has fueled a 16 percent recovery for the S&P/TSX from a low on Jan. 20. The Canadian benchmark now trades at 21.8 times earnings, about 14 percent higher than the 19.1 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Pembina Pipeline Corp. added 1.6 percent, climbing to an August high. The company is raising about C$150 million through a share offering to pay down debt and help fund Pembina’s capital program this year.

US

 By Jeremy Herron and Oliver Renick

     (Bloomberg) — U.S. stocks advanced, pushing the Dow Jones Industrial Average past 18,000 for the first time in nine months, as Brent crude pared losses amid falling output in Kuwait. Japanese index futures signaled advances.

     The Standard & Poor’s 500 Index climbed to a four-month high, while the Dow closed at the highest since July. Crude pared losses as a strike reduced Kuwait’s contribution, though oil in New York settled lower after the breakdown of the Doha talks. Yen-denominated contracts on the Nikkei 225 Stock Average added 0.2 percent to 16,690 on the Chicago Mercantile Exchange at 5:01 p.m. in New York.

     While the failure of large oil producers to agree to a freeze in output initially sent crude lower, losses were limited amid the strike and on speculation China’s slowdown is easing at the same time central banks remain ready to bolster growth. New York Fed President William Dudley added to confidence in the U.S. economy with comments that suggest inflation will firm, and corporate earnings have so far largely topped estimates.

     “We’ve cut our overnight decline in oil and that bounce- back has helped,” Matt Maley, an equity strategist at Miller Tabak & Co. LLC, said in a phone interview. “Unless there’s a big move in crude people will wait to see what happens and will be watching earnings. Revenues are down at these big banks but they beat expectations, they had already priced in negative earnings, and they were able to bounce.

     The S&P 500 rose 0.7 percent to 2,094.34, the highest since Dec. 2. Trading in S&P 500 shares was 6.7 percent below the 30- day average. The Dow average rose 0.6 percent to 18,004.16, the highest level since July 21. Energy producers surged 1.5 percent, erasing a loss. Hasbro Inc. climbed 5.8 percent on earnings that topped estimates thanks to sales of Star Wars items. Walt Disney Co. jumped 3.4 percent.

     Corporate earnings season picks up speed as International Business Machines Corp. and Netflix Inc. are due to release results after markets close, part of about 100 S&P 500 companies that report this week.

     The Ibovespa declined even after the lower house of Congress voted to proceed with Rousseff’s ouster. The scope of gains going forward is seen as limited given the difficulty in tackling the country’s economic and fiscal crises no matter who is in power, according to long-time watchers.

     West Texas Intermediate lost 1.4 percent to $39.78 a barrel, paring declines of as much as 6.8 percent, after Kuwait’s crude production tumbled by 60 percent to 1.1 million barrels a day and its refineries scaled back operations as the state oil company took emergency measures Sunday to cope with the first day of an open-ended labor strike.

     The discussions to freeze output stumbled in Doha as Saudi Arabia and other Gulf nations refused to agree to any deal unless all OPEC members joined — including Iran, which wasn’t present at the meeting. The European benchmark has rebounded from as low as $27.10 in January, which was the lowest since 2003.

     Cotton futures capped their biggest gain in more than eight months amid supply constraints and a sharp change in sentiment over what a liquidation of Chinese inventories will mean for the market.

     Gold futures for June delivery climbed less than 0.1 percent to settle at $1,235 an ounce.

     U.S. Treasuries fell, with the yield on 10-year notes rising by three basis points to 1.78 percent. The yield on the 30-year bond, the security most sensitive to inflation expectations, rose as Dudley said he’s confident that inflation will return to the Fed’s 2 percent target.

     Australian notes due in a decade climbed for the first time in six days, pushing their yield down six basis points to 2.49 percent. Yields on 20- and 30-year Japanese debt declined to record lows of 0.275 percent and 0.355 percent, respectively.

     The euro climbed the most in three weeks amid speculation that the European Central Bank will maintain its monetary policy when it meets this week. The euro rose 0.3 percent, the most since March 31, to $1.1316 per dollar. The currency gained 0.4 percent versus the yen after touching its lowest in three years.

     Brazil’s real, the world’s best performing currency in the first quarter on speculation Rousseff would be ousted, fell Monday after lawmakers voted in favor of impeachment.

     The ruble erased losses, rebounding with Brent crude, amid speculation the market made too much of a failure by oil producing nations to broker an output freeze.
 

Have a wonderful evening everyone.

 

Be magnificent!

“The privilege of a lifetime is being who you are.” Joseph Campbell

 

As ever,

 

Karen
 

“In order to carry a positive action we must develop here a positive vision.” Dalai Lama

 

 

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, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Buyers purchase flowers at a FloraHolland warehouse in Rijnsburg, the Netherlands, Friday. Warehouses are not normally tourist stops, but the century-old Royal FloraHolland depot outside of Amsterdam where millions of flowers are distributed every day is an exception. Yves Herman/Reuters

Foreign tourists watch sea turtles released at the Kuta beach on the Indonesian island of Bali, Thursday. Bali police released thirty one turtles which they seized last week from illegal poachers. Firdia Lisnawati/AP

Market Closes for April 14^th, 2016

Market Index	Close	Change
Dow Jones	17897.32	-29.11   -0.16%
S&P 500	2079.19	-3.59   -0.17%
NASDAQ	4938.215	-7.671   -0.16%
TSX	13624.88	-43.41
		-0.32%

International Markets

Market Index	Close	Change
NIKKEI	16848.03	-63.02
		-0.37%
HANG SENG	21316.47	-21.34
		-0.10%
SENSEX	25626.75	+481.16
		+1.91%
FTSE 100	6343.75	-21.35
		-0.34%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.267	1.294
CND. 30 Year Bond	1.971	1.997
U.S.    10 Year Bond	1.7518	1.7919
U.S. 30 Year Bond	2.5586	2.6035

Currencies

BOC Close	Today	Previous
Canadian $	0.77988	0.77855
US $	1.28225	1.28444
Euro Rate 1 Euro=		Inverse
Canadian $	1.44695	0.69111
US $	1.12845	0.88618

Commodities

Gold	Close	Previous
London Gold Fix	1227.10	1233.85
Oil	Close	Previous
WTI Crude Future	40.36	41.50

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a second day, paring a weekly gain, as crude tumbled the most in two weeks ahead of a long-awaited meeting of suppliers in Doha to discuss an output freeze.

     The benchmark Standard & Poor’s/TSX Composite Index equity gauge fell 0.2 percent to 13,637.20 at 4 p.m. in Toronto, paring a weekly gain to 1.8 percent. The S&P/TSX remains one of the best-performing developed markets in the world this year with a 4.8 percent gain.

     West Texas Intermediate crude slipped a third day ahead of a key meeting this weekend on a potential output freeze. Futures dropped 2.8 percent to settle at $40.36 a barrel, the biggest drop since April 4 and reducing their gain for the week to 1.6 percent. There is a “positive feeling” among producers that an agreement may be reached at the meeting April 17 to restore stability, according to Qatar.

     The International Energy Agency yesterday predicted in a report global oil markets will “move close to balance” in the second half of the year. Oil prices have rebounded from 12-year lows in the past two months.

     Energy producers in the S&P/TSX retreated the most Friday, with a 1.7 percent decline. Canadian Natural Resources Ltd. and Crescent Point Energy Corp. fell more than 2.2 percent. Health- care shares advanced to offset the declines on trading volume 17 percent lower than the 30-day average.

     Bombardier Inc. added 1.9 percent to an October high, with the aircraft manufacturer said to be near an agreement to sell as many as 75 C Series jetliners to Delta Air Lines Inc., according to a person familiar with the talks. The deal would be the largest to date for the struggling program.

     Trading volume for Bombardier stock was almost four times the three-month average today after the company was said to reject an initial investment proposal from the Canadian government with the two sides still far apart on a deal, according to people familiar with the talks.

     The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, as a rebound in producers through the first quarter has fueled a 15 percent recovery for the S&P/TSX from a 2013 low on Jan. 20. The Canadian benchmark now trades at 21.7 times earnings, about 15 percent higher than the 19 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Mitel Networks Corp. plunged 9.6 percent, the most since August, after the communications company agreed to buy Polycom Inc. in a $1.96-billion deal in cash and stock. The deal represents an 11 percent premium compared with Polycom’s close on Thursday.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks fell on the final day of a week in which the Standard & Poor’s 500 Index reached the highest level in four months, as technology shares joined energy producers in a decline.

     The S&P 500 dropped 0.1 percent to 2,080.73 at 4 p.m. in New York, with the gauge posting a weekly advance of 1.6 percent. The Dow Jones Industrial Average declined 29 points, or 0.2 percent, to 17,897.46 on Friday.

     Equities extended defines in the afternoon as Apple Inc. dropped 2 percent after slower-than-expected sales of the iPhone 6S and 6S Plus prompted the company to reduce its orders, the Nikkei Asian Review reported, citing unidentified suppliers. Technology stocks fell as Apple suppliers including Broadcom Ltd., Qorvo Inc., Knowles Corp. and NXP Semiconductors NV also declined on the report. Energy companies halted a three-day gain as crude retreated before major suppliers meet in Doha this weekend to discuss an output freeze.

     “We’ve had a nice week. We’re starting to see more week-to- week trading over the past few months and on Fridays, people take off some risk before the weekend,” said Joe “JJ” Kinahan, chief strategist at TD Ameritrade Holding Corp. “The nice thing about earnings so far is that CEOs have not struck a negative tone and that was one of the fears, especially given what we’ve seen in the last two quarters.”

     Financial firms have led the rise in American equities this week, with the S&P 500 closing near its highest level since Dec. 4. JPMorgan Chase & Co. and Bank of America Corp. climbed after announcing reductions in first-quarter expenses that beat analysts’ estimates. Citigroup declined 0.1 after reporting first-quarter profit that topped projections. 

     Analysts have slashed profit estimates for S&P 500 members since January, and they’re now projecting a 10 percentdecline in net income for the first quarter. Investors are also watching economic releases, after comments by Fed Chair Janet Yellen reaffirmed officials won’t rush to raise interest rates. Traders are pricing in zero chance of a raise at the end of April, with December now the first month with even odds of higher borrowing costs.

     Index futures fluctuated after a report showed factory output unexpectedly declined last month by the most since February 2015, while separate data revealed manufacturing in the New York region expanded this month. Equities remained little changed after consumer confidence unexpectedly fell in April to the weakest level in seven months

     The S&P 500 has rebounded 14 percent since its February low, putting the seven-year bull market weeks away from becoming the second-longest in history. Some investors attribute the gains to short squeezes, with a Goldman Sachs Group Inc. gauge of the 50 most-shorted stocks near its highest level of the year.

     Among stocks moving on corporate news, Cablevision Systems Corp. advanced 1.9 after the New York Post reported the deal with Altice NV is nearing New York City approval, citing someone close with the matter.

     Regions Financial Corp. climbed 3.1 percent after reporting first-quarter profit that exceeded analysts’ estimates by 1 cent.

     Ariad Pharmaceuticals Inc. added 4.6 percent after saying a study of its medicine brigatinib for some lung cancers showed one year survival rates of 100 percent.

     Fannie Mae fell 14 percent, paring a weekly jump of 29 percent, while Freddie Mac dropped 12 percent, while posting a rally this week of 26 percent. The mortgage giants had a federal appellate review today. Fairholme Funds and Perry Capital LLC have challenged the lawfulness of the so-called “net worth sweep”.

 

Have a wonderful weekend everyone.

 

Be magnificent!

 

“Life’s most persistent and urgent question is, ‘What are you doing for others?” Martin Luther King, Jr.

 

As ever,

 

Karen

 “It is no use saying, ‘We are doing our best.’ You have got to succeed in doing what is necessary.” Winston Churchill

 

 

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 April 14, 1865, President Lincoln was shot and mortally wounded by John Wilkes Booth while attending the comedy “Our American Cousin” at Ford’s Theater in Washington, D.C. He died the next day.

Number of the Day

73

The Golden State Warriors beat the Memphis Grizzlies in the last game of the NBA’s regular season for their 73rd win, surpassing the previous record set by the Bulls and establishing themselves as maybe the best NBA team ever.

PHOTOS OF THE DAY

Swiss land art artist Daniel Dunkel builds a cairn on the shore of Lake Leman in Lutry, near Lausanne, Switzerland, Thursday. Denis Balibouse/Reuters

British Parkour expert Tim Shieff performs a hand-stand in front of the House of Commons, as he launches Jungle Book inspired Parkour masterclasses on London’s Southbank, Thursday. Joel Ryan/Invision/AP

Market Closes for April 14^th, 2016

Market Index	Close	Change
Dow Jones	17926.43	+18.15   +0.10%
S&P 500	2081.83	-0.59   -0.03%
NASDAQ	4945.887	-1.534   -0.03%
TSX	13656.02	-15.33
		-0.11%

International Markets

Market Index	Close	Change
NIKKEI	16911.05	+529.83
		+3.23%
HANG SENG	21337.81	+179.10
		+0.85%
SENSEX	25626.75	+481.16
		+1.91%
FTSE 100	6365.10	+2.21
		+0.03%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.294	1.250
CND. 30 Year Bond	1.997	1.973
U.S.    10 Year Bond	1.7919	1.7639
U.S. 30 Year Bond	2.6035	2.5837

Currencies

BOC Close	Today	Previous
Canadian $	0.77855	0.78035
US $	1.28444	1.28147
Euro Rate 1 Euro=		Inverse
Canadian $	1.44673	0.69121
US $	1.12635	0.88776

Commodities

Gold	Close	Previous
London Gold Fix	1233.85	1245.75
Oil	Close	Previous
WTI Crude Future	41.50	41.76

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks ended little changed, halting a four-day rally, as the Standard & Poor’s/TSX Composite Index traded near a five-month high.

     The benchmark equity gauge fell less than 0.1 percent to 13,668.29 at 4 p.m. in Toronto, following a four-day winning streak that pushed the index 3.1 percent higher. The S&P/TSX remains one of the best-performing developed markets in the world this year with a 5.1 percent gain.

     West Texas Intermediate crude slipped ahead of a key meeting this weekend between OPEC producers on a potential output freeze. The International Energy Agency predicted in a report global oil markets will “move close to balance” in the second half of the year. Oil prices have rebounded from 12-year lows in the past two months.

     The resource-dominant S&P/TSX remains tied to commodities prices, as a rebound in resource producers through the first quarter has fueled a 15 percent resurgence for the S&P/TSX from a 2013 low on Jan. 20. The Canadian benchmark now trades at 21.7 times earnings, about 15 percent higher than the 19 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Gold producers sank 2.7 percent as spot prices of the precious metal retreated a third day. Demand for bullion as a haven has slowed as stock markets rallied and growth indicators suggested China’s economy was stabilizing. Raw-material producers remain the top-performing industry in Canada this year, rallying 24 percent. 

     Fertilizer producer Agrium Inc. tumbled 5.3 percent to a 2014 low after Bank of Nova Scotia analyst Ben Isaacson dropped Agrium from his focus list due to its valuation. Isaacson now has a sector outperform rating for Agrium, or buy, albeit with less conviction due to lower nitrogen prices and a weaker agricultural outlook beyond 2016, according to a note.

     Shaw Communications Inc. fell 3.2 percent, the most since January, after reporting second-quarter earnings. Barclays Capital Analyst Phillip Huang said in a note Shaw will need years of investments to grow its recently acquired Wind Mobile asset, adding to a long list of investment priorities that will constrain the company’s ability to raise its dividend in the foreseeable future.

US

By Dani Burger

     (Bloomberg) — U.S. stocks ended little changed on Thursday, with the Standard & Poor’s 500 Index near a four-month high and the Dow Jones Industrial Average edging to the highest since July, as investors assessed earnings releases and data showing the labor market is improving with little pickup in inflation.

     Banks advanced, with Bank of America Corp. advancing a fifth day after saying it sees more room for cost cuts. Airline operators jumped along with Delta Air Lines Inc., which posted quarterly earnings that beat projections. Technology shares retreated as Seagate Technology Plc plummeted 20 percent after reporting preliminary revenue that trailed estimates.

     The S&P 500 added less than 0.1 percent to 2,082.78 at 4 p.m. in New York, after reaching the highest level since Dec. 4 yesterday. Financial shares and commodity producers have led the benchmark gauge to a 1.7 percent advance so far this week, after the measure faltered last week amid skepticism central banks’ efforts to shore up growth will fail to be effective. The Dow Jones Industrial Average increased by 18 points to 17,926.43 on Thursday, the highest since July 20. The index is 2.1 percent below its record.

     While the rally that lifted the S&P 500 since February is regaining momentum, skepticism still prevails, with valuations far above their five-year average and the seven-year bull market weeks away from becoming the second-longest in history. Some investors also attribute the rebound to short squeezes, with a Goldman Sachs Group Inc. gauge of the 50 most-shorted stocks posting its biggest two-day jump in almost two months.

     “It’s time for the market to earn the rally we’ve had over the last seven or six weeks, in terms of an actual earnings picture,” said Michael Mussio, managing director of FBB Capital Partners, which oversees $850 million.“We’re back to waiting and seeing. The market definitely seems like it’s priced in for some type of upside surprise, but we’ll have to see.”

     Analysts have slashed profit estimates for S&P 500 members this year, now projecting net income fell 10 percent in the first quarter. Investors are also tracking economic releases. Stock futures climbed in pre-market trading after data showed initial jobless claims fell to match the lowest level since 1973 and the cost of living excluding food and fuel rose less than forecast in March.

     Futures also extended gains after Federal Reserve Bank of Atlanta President Dennis Lockhart said today on Bloomberg Television that inflation is still lagging the central bank’s target and a patient approach to policy “makes sense.” After comments by Fed Reserve Chair Janet Yellen reaffirmed officials won’t rush to raise interest rates, traders are pricing in zero possibility of a raise at the end of April, with December now the first month with even odds of higher borrowing costs.

     Semiconductors and technology hardware companies were the worst performing groups. Western Digital Corp., a rival of Seagate, sank 6.7 percent, while chipmaker Micron Technology Inc. slid 4.4 percent after saying it plans to sell $1 billion in notes. Intel Corp. the world’s biggest semiconductor maker, dropped 1 percent.

     Delta, American Airlines Group Inc., and United Continental Holdings Inc. added more than 0.9 percent to make up some of the biggest winners in the S&P 500 today.

     Valeant Pharmaceuticals International Inc. wiped out losses briefly in late afternoon trading, after Legg Mason Inc.’s Bill Miller said at an investor meeting Thursday that he’s buying shares, betting that the price of the embattled drugmaker could double. Shares ended the day 2.2 percent lower.

     Chipotle Mexican Grill Inc. climbed 2.6 percent after JPMorgan Chase & Co. raised its rating on the stock to the equivalent of a buy.

     SunEdison Inc. soared 58 percent after saying it found no misstatements in its financial statements.

 

Have a wonderful evening everyone.

 

Be magnificent!

Though they may take various roads, all are on the way.

Swami Vivekananda

As ever,

 

Carolann

 

The megalomaniac differs from the narcissist by the fact that he wishes to be

powerful rather than charming, and seeks to be feared rather than loved.  To

this type belong many lunatics and most of the great men of history.

                                                     -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:

Thomas Jefferson, 3^rd US President born on this day in 1743.
1962: Silent Spring by Rachel Carson is published.

Came across the following and liked it.

 

Nothing softeneth the Arrogance of our nature like a

 

Mixture of some Frailities.  It is by them  that we are best told,

 

That we must not strike too hard upon others

 

Because we ourselves do so often deserve blows.  They

 

Pull our Rage by the sleeve and whisper

 

Gentleness to us in our censures.

 

                                                                   Edward Frederick Lindley Wood, 1^st Earl of Halifax, 1881-1959

PHOTOS OF THE DAY

Young monks take a break from their studies at Changangkha Lhakhang temple in Thimphu, Bhutan, Wednesday. Cathal McNaughton/Reuters

Munin, an intelligent marine robot, explores the Loch Ness in Scotland, UK on Wednesday. Russell Cheyne/Reuters

Market Closes for April 13^th, 2016

Market Index	Close	Change
Dow Jones	17908.28	+187.03   +1.06%
S&P 500	2082.42	+20.70   +1.00%
NASDAQ	4947.422	+75.331   +1.55%
TSX	13671.35	+89.93
		+0.66%

International Markets

Market Index	Close	Change
NIKKEI	16381.22	+452.43
		+2.84%
HANG SENG	21158.71	+654.27
		+3.19%
SENSEX	25626.75	+481.16
		+1.91%
FTSE 100	6362.89	+120.50
		+1.93%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.250	1.291
CND. 30 Year Bond	1.973	1.990
U.S.    10 Year Bond	1.7639	1.7726
U.S. 30 Year Bond	2.5837	2.5943

Currencies

BOC Close	Today	Previous
Canadian $	0.78035	0.78335
US $	1.28147	1.27656
Euro Rate 1 Euro=		Inverse
Canadian $	1.44503	0.69203
US $	1.12763	0.88681

Commodities

Gold	Close	Previous
London Gold Fix	1245.75	1254.60
Oil	Close	Previous
WTI Crude Future	41.76	42.17

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a fourth day, rallying to the highest since November, as the nation’s largest lenders advanced after the Bank of Canada backed away from cutting interest rates amid signs fiscal policy is boosting growth prospects.

      The Standard & Poor’s/TSX Composite Index rose 0.7 percent to 13,671.35 at 4 p.m. in Toronto, extending a four-day winning streak to 3.1 percent. The S&P/TSX remains one of the best- performing developed markets in the world this year with a 5.1 percent gain.

     The Bank of Canada kept its key interest rate at 0.5 percent, where it’s been since cuts in January and July, in a decision released Wednesday from Ottawa. Gross domestic product will grow 1.7 percent this year instead of the 1.4 percent the central bank expected in January. Faster growth allows Governor Stephen Poloz to back away from his suggestion in January he was inclined to cut rates again.

     Financial services stocks added 1.1 percent, as Bank of Nova Scotia and Royal Bank of Canada added at least 1.4 percent. Eight of 10 industries in the S&P/TSX advanced on trading volume 4 percent less than the 30-day average.

     The resource-dominant S&P/TSX remains tied to commodities prices, as crude and gold prices have found some footing in the second quarter after stumbling at the beginning of April.

     Raw-material producers have been the top-performing industry in Canada this year, rallying 28 percent. Gold prices have soared 17 percent as investors scaled back projections for U.S. rate increases. The Canadian benchmark now trades at 21.7 times earnings, about 15 percent higher than the 18.9 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     HudBay Minerals Inc. and Labrador Iron Ore Royalty Corp. added at least 2.4 percent as base metals rose with iron ore above $60 a metric ton. China’s exports jumped the most in a year while declines in imports narrowed, adding to evidence the world’s second-largest economy is stabilizing. China is also Canada’s second-biggest trading partner after the U.S.

     Valeant Pharmaceuticals International Inc. rose 3.9 percent, reversing an earlier loss, as the drugmaker’s outgoing Chief Executive Officer Michael Pearson has now agreed to comply with a congressional subpoena to give a deposition before a Senate committee investigating drug pricing, after previously refusing to do so.

     The drugmaker earlier said it will have four fewer days to file its financials before lenders can demand loan repayment after the company received a default notice from some of its bondholders.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks extended gains a second day to reach the highest in four months, buoyed by improving Chinese trade data and better-than-expected results from JPMorgan Chase & Co., the biggest U.S. lender by assets.

     JPMorgan advanced 4.2 percent after reporting first-quarter profit was boosted by pay cuts and trading revenue that declined less than most analysts predicted. Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., scheduled to release results later this week, climbed at least 2.6 percent. Companies that are popular targets by short sellers rallied today, with a Goldman Sachs Group Inc. gauge of the 50 most shorted stocks posting the biggest increase since March 2.

     The Standard & Poor’s 500 Index rose 1 percent to 2,082.42 at 4 p.m. in New York, the highest since Dec. 4. Volume on U.S. exchanges was 8.1 percent higher than the 30-day average. All but five stocks in the 30-member Dow Jones Industrial Average increased, as the measure climbed 1.1 percent to 17,908.28 today. Futures contracts in pre-market trading held onto gains after releases showed U.S. retail sales and wholesale prices unexpectedly slumped last month, stoking speculation the Federal Reserve may slow the pace of further rate increases.

     “While U.S. numbers were a little weak, it’s a strong day overseas and China data was much better than expected,” Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC, said by phone. “While JPMorgan had a tough quarter, they still beat estimates. If earnings come in better than expected — with expectations so low — if we have even a decent beat, you may see us break out.”

     S&P 500 analysts have been projecting first-quarter profits by companies in the benchmark shrank 10 percent in the first quarter, with bank earnings contracting by 20 percent. That’s fueled concern on the outlook for stocks, with valuations far above their five-year average and the seven-year bull market weeks away from becoming the second-longest in history.

     A report showed China’s exports jumped by the most in a year in March and declines in imports narrowed, helping ease worries about a slowdown in the world’s second-largest economy. U.S. stocks are rebounding a second day, as crude pushed past $42 a barrel yesterday, lifting energy producers to their best one-day gain in almost two months.

     Banks, the worst-performing group so far in 2016, led gains with all 17 stocks in the S&P 500 index rallying. Among lenders that advanced today were People’s United Financial Inc. and Zions Bancorporation, which have short interest out of shares outstanding at 16 percent and 6 percent, respectively, data compiled by Markit Ltd. show.

     Carmakers also advanced. Harley-Davidson Inc. added 4.3 percent after UBS AG said the company’s retail sales in March likely jumped 10 percent because of warm weather. Bearish bets on the motorcycle maker is at 15 percent. Delphi Automotive Plc increased 5.6 percent after announcing a new buyback program and winning a long-running dispute with the U.S. Internal Revenue Service over whether the parts maker should be allowed to call itself British for tax purposes.

     Activision Blizzard Inc. climbed 5 percent after Stifel Nicolaus & Co. raised its price target ton the company to $40 a share from $35, saying its new game “Overwatch” could lead to a record year. The new price forecast is 19 percent higher than the stock’s close yesterday.

     CSX Corp. rose 4.2 percent after the rail transportation company posted quarterly profit in line with analysts’ estimates, as cost cuts helped make up for a drop in coal and oil carloads.

 

Have a wonderful evening everyone.

 

Be magnificent!

Our contribution

to the progress of the world must, therefore,

consist in setting our own house in order.

Mahatma Gandhi

As ever,

 

Carolann

 

We hold these truths to be self-evident: that all men are created equal;

that they are endowed by their Creator with certain unalienable rights;

that among these are life, liberty and the pursuit of happiness.

                                                       -Thomas Jefferson, 1743-1826

 

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 April 12, 1945, Franklin D. Roosevelt, the 32nd president of the United States, died of a cerebral hemorrhage in Warm Springs, Ga., at age 63. Vice President Harry S Truman became president.

1980 – Terry Fox starts ‘Marathon of Hope’ for Cancer Society.

1967 – House of Commons chooses ‘O Canada’ as national anthem.

           SPRING

How fair the flowers unaware
That do not know what beauty is!
Fair, without knowing they are fair,
With poets and gazelles they share
  Another world than this.

The can but die, and not betray
As friends or love betray the heart.
They can but live their pretty day
And do no worse than simply play
  Their brief sufficient part.

They cannot break the heart, as friend
Or love may split our trust for ever.
We never asked them to pretend:
Death is a clean sufficient end
  For flower, friend, or lover.

            -V. Sackville-West

PHOTOS OF THE DAY

Hindu devotees perform a ritual balancing fire pots on head and hands as part of on Sitala Puja, dedicated to the Hindu goddess of pox, in Kolkata, India, Tuesday. Devotees participate to various rituals during this event to make a wish for the well-being of their family. Bikas Das/AP

Tourists float in the Dead Sea, Israel, Tuesday. Oded Balilty/AP

Market Closes for April 12^th, 2016

Market Index	Close	Change
Dow Jones	17721.25	+164.84   +0.94%
S&P 500	2061.72	+19.73   +0.97%
NASDAQ	4872.090	+38.690   +0.80%
TSX	13581.42	+158.66
		+1.18%

International Markets

Market Index	Close	Change
NIKKEI	15928.79	+177.66
		+1.13%
HANG SENG	20504.44	+63.63
		+0.31%
SENSEX	25145.59	+123.43
		+0.49%
FTSE 100	6242.39	+42.27
		+0.68%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.291	1.241
CND. 30 Year Bond	1.990	1.955
U.S.    10 Year Bond	1.7726	1.7254
U.S. 30 Year Bond	2.5943	2.5616

Currencies

BOC Close	Today	Previous
Canadian $	0.78335	0.77534
US $	1.27656	1.28976
Euro Rate 1 Euro=		Inverse
Canadian $	1.45348	0.68800
US $	1.13859	0.87828

Commodities

Gold	Close	Previous
London Gold Fix	1254.60	1254.75
Oil	Close	Previous
WTI Crude Future	42.17	40.36

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks posted its biggest three-day rally in a month, as crude topped $42 a barrel and Bombardier Inc. climbed on more orders for its C Series jet aircraft.

     The Standard & Poor’s/TSX Composite Index rose 1.2 percent to 13,581.42 at 4 p.m. in Toronto, extending a three-day winning streak to 2.4 percent. The S&P/TSX remains one of the best- performing developed markets in the world this year with a 4.4 percent gain.

     Canadian equities advanced with commodities prices on Tuesday, as crude jumped after Interfax reported Russia and Saudi Arabia reached a consensus on freezing oil output. Gold held near a three-week high, buoyed by a falling dollar that’s trading near a June 2015 low.

     The resource-dominant S&P/TSX remains tied to commodities prices, as crude and gold prices have found some footing in the second quarter after stumbling at the beginning of April. Energy producers added 3.5 percent today, the biggest gain in the S&P/TSX as eight of 10 industries advanced on trading volume 10 percent higher than the one-month average. Encana Corp. surged 9.3 percent while Cenovus Energy Inc. and Crescent Point Energy Corp. rallied more than 7.4 percent.

     Enerplus Corp. jumped 9.7 percent to the highest close this year, after the oil and gas producer sold non-core assets in Northwest Alberta Monday worth about C$95.5 million.

     Raw-material producers have been the top-performing industry in Canada this year, rallying 29 percent. Gold prices have soared 18 percent as investors scaled back projections for U.S. rate increases. The Canadian benchmark now trades at 21.6 times earnings, about 15 percent higher than the 18.8 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Bombardier added 5.5 percent, after three straight days of no change. The struggling aerospace manufacturer said Latvia’s flag carrier airBaltic converted its remaining seven option aircraft to a firm order. This latest order brings the Latvian carrier’s total firm orders to 20 CS300 aircraft.

     The C Series is “critical” to the survival of Bombardier’s aircraft business, George Ferguson, an industry analyst with Bloomberg Intelligence, said in a note. Ferguson estimates Bombardier needs more than 1,000 C Series orders for success.

US

By Dani Burger

     (Bloomberg) — U.S. stocks rose to a one-week high as crude pushed past $42 a barrel to overshadow a tepid start to the first-quarter earnings season.

     Energy producers surged 2.7 percent as crude climbed to a four-month high after Saudi Arabia and Russia were seen agreeing on whether to freeze oil production. Chesapeake Energy Corp. surged the most on record after pledging assets to maintain access to financing. Alcoa Inc. slid 3.4 percent after the largest U.S. aluminum producer cut its forecast for global demand. Juniper Networks Inc. plunged 7.5 percent after sales missed forecasts, dragging the semiconductor industry lower.

     The S&P 500 added 1 percent to 2,061.74 at 4 p.m. in New York. The index has alternated gains and losses for four days and is now little changed for the month of April. The Dow Jones Industrial Average climbed 165.05 points, or 0.9 percent, to 17,721.46. as well as continued oil price strength and weakness in the dollar.”

     West Texas Intermediate rose 4.5 percent in New York. Saudi Arabia and Russia have reached a consensus on an output freeze, Interfax said Tuesday, citing an unidentified “informed diplomatic source” in Doha.

     The rally in crude is overshadowing the start of earnings season that is forecast to be the worst since the financial crisis, with analysts projecting first-quarter profits shrank 10 percent — including a 20 percent decline for banks — compared with earlier estimates for flat growth.

     “We don’t have strong revenue growth — that’s what we heard from Alcoa,” said Spika. “Until we have that, particularly with wage pressure, it’s hard to justify a move higher in the market. Investors are whistling past the graveyard and not focusing on the key issue. It’s a show me market, and we need earnings to push it forward from here.”

     After a tumultuous start to the year that saw the S&P 500 tumble as much as 11 percent, U.S. equities rebounded 13 percent in the following six weeks. They are now little changed in the past two weeks after falling the most since February last week.

     The Chicago Board Options Exchange Volatility Index slumped 7.9 percent to 14.97 on Tuesday, the lowest level in a week.

     All 10 main S&P 500 groups advanced Tuesday, with energy and financial shares leading the way. JPMorgan Chase & Co. and Citigroup Inc. are among companies that report corporate results this week.

     Among other stocks active on corporate news, Fastenal Co. lost 3.1 percent after also posting sales and earnings that missed the average analyst estimate.
 

Have a wonderful evening everyone.

 

Be magnificent!

 

Every day we see or read of appalling things happening in the world as the result of violence in man.

You may say, “I can’t do anything about it,” or “How can I influence the world?”

I think you can tremendously influence the world if you yourself are not violent,

if you lead actually every day a peaceful life – a life which is not competitive, ambitious, envious –

a life which does not create enmity.

Small fires can become ablaze.

Krishnamurti

As ever,

 

Carolann

The greatest pleasure in life is doing what people

say you cannot do.

                        -Walter Bagehot, 1826-1877                     

 

 

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:

April 11, 1945: liberation of Buchenwald

Poem: An elegy is, as Edward Hirsch writes, “a poem of mortal loss and consolation.”  This elegy first records the stray, important thoughts that come when the poet listens to Bach.  Only at the end do we come upon the particular loss, and the consolation of possibility.

Elegy

 -by Ed Smallfield

                                                        Bach.

                                                 A cello

                                                       swells

                                            in the dark.

                                                    Talk

                                                 & spells,

                    those stories the body tells.

                                                        A walk

    between raindrops.  The notes empty.  The notes fill.

           The accidents of somebody’s biography.

A hand        explores        whatever        is too dark to see.

                                                          April

ends & the cellist is dead.                   An orange window.

                                                & I am coming to see you.

 

                                            -NY Times, April 10, 2016

PHOTOS OF THE DAY

Catherine, Duchess of Cambridge is watched by former Indian cricketer Dilip Vengsarkar as she and Britain’s Prince William play a game of cricket with Indian children, who are beneficiaries of NGOs, at the Oval Maidan in Mumbai, Sunday. Rafiq Maqbool/AP

Canada’s Prime Minister Justin Trudeau sits with members of the Sikh community and government caucus during a Vaisakhi celebration on Parliament Hill in Ottawa, Monday. Adrian Wyld/The Canadian Press/AP

Market Closes for April 11^th, 2016

Market Index	Close	Change
Dow Jones	17556.41	-20.55   -0.12%
S&P 500	2041.99	-5.61   -0.27%
NASDAQ	4833.398	-17.291   -0.36%
TSX	13422.76	+26.03
		+0.19%

International Markets

Market Index	Close	Change
NIKKEI	15751.13	-70.39
		-0.44%
HANG SENG	20440.81	+70.41
		+0.35%
SENSEX	25022.16	+348.32
		+1.41%
FTSE 100	6200.12	-4.29
		-0.07%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.241	1.232
CND. 30 Year Bond	1.955	1.953
U.S.    10 Year Bond	1.7254	1.7184
U.S. 30 Year Bond	2.5616	2.5525

Currencies

BOC Close	Today	Previous
Canadian $	0.77534	0.76963
US $	1.28976	1.29933
Euro Rate 1 Euro=		Inverse
Canadian $	1.47117	0.67973
US $	1.14064	0.87670

Commodities

Gold	Close	Previous
London Gold Fix	1254.75	1239.50
Oil	Close	Previous
WTI Crude Future	40.36	39.72

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day, giving back some gains in the final hour of trading, as commodities rallied amid signs of a pick-up in industrial demand in China. Valeant Pharmaceuticals International Inc. extended losses to drag health-care companies lower.

     The Standard & Poor’s/TSX Composite Index rose 0.2 percent to 13,422.76 at 4 p.m. in Toronto, paring an earlier advance of as much as 1 percent. The Canadian benchmark has gained 1.2 percent in two days. The S&P/TSX remains one of the best- performing developed markets in the world this year with a 3.2 percent gain.

     Canadian equities advanced with commodities prices today, as crude traded above $40 a barrel in New York while spot gold advanced to the highest in three weeks. Copper rebounded as the dollar declined a second day. China’s producer prices increased 0.5 percent in March from February, the first gain in more than two years, data showed Monday.

     The resource-dominant S&P/TSX remains tied to commodities prices, as a first-quarter rally fueled by a resurgence in crude and gold prices has stalled to start the second. The Canadian benchmark now trades at 21.3 times earnings, about 15 percent higher than the 18.6 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.

     Canadian Pacific Railway Ltd. climbed 2.6 percent to the highest level since Dec. 4, after the railroad operator ended efforts to buy U.S. competitor Norfolk Southern Corp. and the takeover plan backed by investor Bill Ackman drew opposition from customers and U.S. government officials. Norfolk Southern rejected three offers, including one in December that valued the company at $27 billion.

     Whitecap Resources Inc. climbed 8.6 percent to a three- month high, after the oil and natural gas explorer lowered its monthly dividend and doubled its 2016 capital spending guidance to C$148 million.

     Valeant tumbled 7.8 percent for a second day of losses, as declines accelerated through the day. The drugmaker’s board has asked outgoing Chief Executive Officer Michael Pearson to cooperate with a subpoena to appear before a U.S. Senate committee that’s investigating drug pricing. The committee said Friday it intended to start contempt proceedings against Pearson, after he failed to appear at a deposition that week.

     Shares of Valeant have rebounded from a five-year low after winning the support of lenders to waive a default and ease some restrictions on its loan terms last week. Valeant shares remain down almost 90 percent from an August record.

US

By Dani Burger

     (Bloomberg) — U.S. stocks fell, erasing gains in late afternoon trading, as investors braced for what is forecast to be the worst earnings season since the financial crisis.

     The Standard & Poor’s 500 Index fell 0.3 percent to 2,041.99 at 4 p.m. in New York, wiping out an advance of as much as 0.8 percent, after the steepest decline last week in two months. Financial shares, the worst performing group in the S&P 500 in 2016, gained, with JPMorgan Chase & Co. and Goldman Sachs Group Inc. climbing. Signs of a pick-up in Chinese industrial demand pushed raw-material producers higher, while health-care and consumer-staples companies weighed on the index.

     “The market lacks enough conviction to move stocks in any one direction for any one amount of time long enough for investors to sink their teeth into and rack up performance,” John Stoltzfus, the New York-based chief market strategist at Oppenheimer & Co., said by phone. “There is an increased amount of skepticism and concern, mostly around earnings season. It boils down to a market that has to climb a wall of worry and has to earn its gains.”

     Alcoa Inc. unofficially kicked off the reporting season today, reporting after the close first-quarter profit of 7 cents a share, which exceeded analysts’ estimates by 5 cents. Sales were $4.95 billion, falling short of the $5.2 billion that was projected. Shares retreated 0.4 percent in late trading. 

     As investors await fresh cues from corporate America, analysts are projecting first-quarter profits will contract 10 percent —  compared with calls for flat earnings growth at the start of the year — including a 20 percent drop for banks. Still, for the first time in eight months, the pace at which they are cutting their estimates is slowing.

     While S&P 500 companies have historically exceeded earnings forecasts, sales have fallen short of projections in the past two periods. JPMorgan Chase, Bank of America Corp. and Citigroup Inc. are all scheduled to release results this week.

     Following a tumultuous start to the year in which the S&P 500 tumble as much as 11 percent, U.S. equities are now almost unchanged on optimism that central bank support will be enough to support growth. Still, reasons for additional gains have grown thin, with valuations far above their five-year average and the seven-year bull market weeks away from becoming the second-longest in history. 

     After comments by Federal Reserve Chair Janet Yellen and minutes from the March meeting this month reaffirmed officials won’t rush to raise interest rates, traders are pricing in zero chances of a raise in April. The first month with at least even odds for a boost has been pushed to February 2017.

     Among stocks moving on corporate news, Chesapeake Energy Corp. jumped 20 percent after saying it has amended a $4 billion secured revolving credit facility agreement with its bank syndicate group that matures in 2019.

     Yahoo! Inc. added 1.1 percent after a person familiar with the matter said the publisher of Britain’s Daily Mail newspaper is interested in buying the company’s media and news properties. Daily Mail has spoken with a half dozen U.S.-based private- equity firms and a bid would only be made in conjunction with a partner, according to the report.

     Biotechnology companies slumped, with the Nasdaq Biotechnology Index dropping a third day. Endo International Plc sank 8 percent, while Insys Therapeutics Inc. plunged 19 percent. The latter posted preliminary revenue from its Subsys drug that trailed estimates, saying scrutiny around opioid addiction may have caused reluctance by health-care providers in writing prescriptions.

     Hertz Global Holdings Inc., a popular hedge-fund holding, slid 11 percent after saying U.S. car rental revenue in 2016 will be flat to down by 1.5 percent, after previously projecting an increase of at least 1.5 percent. Avis Budget Group Inc. also declined, losing 8.1 percent.

     Under Armour Inc.’s Class A shares sank 5.5 percent after Morgan Stanley cut its price target on the retailer to $32 a share, or 27 percent below the stock’s close on Friday. The bank said revenue growth, especially in women’s, has slowed, which will lead to a future quarterly sales miss.

     National Oilwell Varco Inc. tumbled 6.2 percent after reporting first-quarter sales dropped by about 20 percent to $2.16 billion from the prior quarter. The preliminary figure also fell short of analysts’ estimates, which called for revenue of $2.38 billion.

 

Have a wonderful evening everyone.

 

Be magnificent!

When there is space between you and the object you are observing

you well know there is no love, and without love, however hard you try to reform the world

or bring about a new social order or however much you talk about improvements,

you will only create agony.

So it is up to you.

Krishnamurti

As ever,

 

Carolann

 

Leaders inspire themselves and

others to do, be, give and become

more than they ever thought

possible.

              -Tony Robbins, b. 1960

 

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 “point”, Darwin taught us, is to pass on our genes.  This is as true for humans as for any other organism – chimpanzees, for example, or planaria.  The formula worked for life for the 3.5 billion years beforeHomo sapiens came along, and it isn’t likely to change now, just because people tend to find it unsatisfying,

  Most of us would, of course, prefer to believe our lives have a higher purpose than those of E. coli.  The very capacity to aspire – to truth and beauty, fame and fortune, intimacy and immortality – is one of the characteristics that sets modern humans apart from other species.  But the mistake is to project the structures of our minds onto the nature of existence, to demand that the world conform to the way we think about it.  “Endless forms most beautiful” evolved without us, and will continue to do so after we’re gone.

  Perhaps the wisest thing we could try to do is to make peace with pointlessness.  This is not so much a prescription for personal happiness as a petition on behalf of creation.  Right now, expressions of human purposefulness are transforming the planet – reshuffling the biosphere, altering the atmosphere, and changing the chemistry of the oceans.  We’ve ushered in a new geological age, the Anthropocene, which  is likely to be marked by the highest extinction rates since the asteroid impact that did in the dinosaurs.

  How might we pursue a less purposeful existence?  We could begin by trying to do less. This might seem like a negative goal, but it would actually be hugely consequential.  As it stands right now, humanity’s most lasting accomplishment will be our pruning (or hatcheting) of the tree of life: a sad legacy, and one we should do everything in our power to avoid.  The challenge to us as a species is to let other species pass on their genes – to allow them, too, to have a point. –Elizabeth Kolbert, Intelligent Life.

PHOTOS OF THE DAY

The SpaceX Falcon 9 rocket lifts off from launch complex 40 at the Kennedy Space Center in Cape Canaveral, Fla., Friday. The rocket will deliver almost 7,000 pounds of science research, crew supplies, and hardware to the International Space Station. John Raoux/AP

A NASA image shows the International Space Station as it flew over Madagascar, showing three of the five spacecraft docked to the station in this photo taken by the Expedition 47 Flight Engineer Tim Peake of ESA on April 6, 2016 and released on Friday. Tim Peake/ESA/NASA/Reuters

Flower petals rest on the surface of the Manzanares river during an event marking the International Roma Day in Madrid, Friday. Members of the Spain’s gypsy community threw flower petals into the river during a ceremony symbolizing the departure of their ancestors from India and their exodus across the world. Francisco Seco/AP

Market Closes for April 8^th, 2016

Market Index	Close	Change
Dow Jones	17576.96	+35.00   +0.20%
S&P 500	2045.27	+3.36   +0.16%
NASDAQ	4850.688	+2.322   +0.05%
TSX	13379.36	+112.92
		+0.85%

International Markets

Market Index	Close	Change
NIKKEI	15821.52	+71.68
		+0.46%
HANG SENG	20370.40	+104.35
		+0.51%
SENSEX	24673.84	-11.58
		-0.05%
FTSE 100	6204.41	+67.52
		+1.10%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.232	1.167
CND. 30 Year Bond	1.953	1.920
U.S.    10 Year Bond	1.7184	1.6906
U.S. 30 Year Bond	2.5525	2.5171

Currencies

BOC Close	Today	Previous
Canadian $	0.76963	0.76049
US $	1.29933	1.31499
Euro Rate 1 Euro=		Inverse
Canadian $	1.48101	0.67522
US $	1.13982	0.87733

Commodities

Gold	Close	Previous
London Gold Fix	1239.50	1242.10
Oil	Close	Previous
WTI Crude Future	39.72	37.26

Market Commentary:

Canada

By Anna-Louise Jackson

     (Bloomberg) — Canadian stocks rose the most in three weeks, as a rally in crude boosted energy producers and a surge in hiring stoked speculation the nation’s central bank will refrain from cutting interest rates further.

     The Standard & Poor’s/TSX Index rose 1 percent to 13,396.73 at 4 p.m. in Toronto as seven of the 10 main industries advanced. The benchmark still fell 0.3 percent for the week, as consumer discretionary and staples companies sank. The Canadian benchmark equity gauge trades at 21.3 times earnings, about 14 percent higher than the 18.6 times earnings valuation of the S&P 500, according to data compiled by Bloomberg.

     A report today showed Canadian employment rose faster than forecast in March, a big step in erasing the chance the Bank of Canada will cut rates in its April 13 interest-rate decision. Canadian companies joined global stocks in advancing with commodity prices to end a week that’s seen markets whipsaw and currency volatility approach the highest since 2011.

     Canada’s largest energy producers led Friday’s rally, adding 2.3 percent to the highest level this month, as all but one of 50 members gained. Enerplus Corp. surged 6.2 percent to the highest since December, while Whitecap Resources Inc. extended a four-day rally in which it gained 14 percent.

     Raw-material producers jumped 1.9 percent, rallying for a fourth straight day, as Yamana Gold Inc. jumped 8.4 percent to the highest since May. Shares of industrial and financial companies also rose.

     Health-care companies slumped 4.7 percent, dragged lower by a decline of 6.1 percent in Valeant Pharmaceuticals International Inc. shares. Consumer-discretionary stocks fell for the fifth time in six days, closing 0.7 percent lower on Friday and bringing month-to-date losses to 3.2 percent.

     Analyst downgrades sent at least two stocks lower, as Interfor Corp. tumbled 5.5 percent, the most in almost two months, and Badger Daylighting Ltd. fell 3.5 percent to the lowest level since November.

US

By Dani Burger

     (Bloomberg) — U.S. stocks edged higher, with the Standard & Poor’s 500 Index trimming the worst weekly slide in two months, as a surge in crude that boosted energy shares offset a slump in biotechnology shares.

     The S&P 500 climbed 0.2 percent to 2,047.63 at 4 p.m. in New York, remaining in a range it’s held since the Federal Reserve’s last policy meeting on March 16. The index rose as much as 0.9 percent Friday, and closed down 1.2 percent in the week, the most since Feb. 5. Equities have swung between gains and losses in the five days as investors search for clues on the strength of the American economy ahead of what is forecast to be the worst earnings season since the financial crisis.

     “You still have a lot of uncertainty surrounding earnings,” said Peter Jankovskis, who helps oversee $1.9 billion as co- chief investment officer of Lisle, Illinois-based OakBrook Investments. “There was definitely a risk off trade yesterday. People don’t want to jump in and take a big position either way in front of an earnings number that people expect to be down.” 

     The Dow Jones Industrial Average advanced 0.2 percent to 17,577.23. The Nasdaq Composite Index was little changed after erasing gains, dragged lower by biotech shares. The group fell 1.1 percent for a second day of losses following a 6 percent rally Wednesday.

     Energy shares led gains in the S&P 500 Friday with a 2 percent advance, as Chevron Corp. surged 1.6 percent. Crude rallied 6.1 percent to top $39.50 a barrel in New York. Gap Inc. shares fell 14 percent after the struggling apparel chain posted disappointing sales.

     Stocks have made little progress since snapping a five-week winning streak last month that erased losses from the worst-ever start to a year. The S&P 500 ended the week higher by 0.2 percent in the year. It has remained within 1 percent of the 2,050 level over the past three weeks, as sentiment lurched from optimism that central banks will support growth to worry that their efforts may not be enough to fend off a slowdown. The Chicago Board Options Exchange Volatility Index capped its biggest weekly advance since January.

     Still, more stocks are moving with the benchmark than before. Breadth as tracked by the relative size of swings in the S&P 500 Equal Weight Index has risen to highs not seen since 2012, a departure from last year, when a few big stocks held sway over the index.

     Investors are awaiting fresh cues from corporate America, with the earnings season unofficially kicking off when Alcoa Inc. reports first-quarter results on April 11. Analysts estimate profits fell 9.5 percent in the first quarter, compared with calls for flat earnings growth at the start of the year. That would mark the worst reporting period since the financial crisis.

     After comments by Federal Reserve Chair Janet Yellen and minutes from the March meeting this month reaffirmed officials won’t rush to raise interest rates, traders are pricing in zero chances of a raise in April. The first month with at least even odds for a boost has been pushed to February 2017 from December last week.

 

Have a wonderful weekend everyone.

 

Be magnificent!

As long as individuality survives, that is,

as long as you continue to see others as separate from you,

a feeling of hostility towards them cannot fail to prevail.

As ever,

 

Carolann

 

The stupid neither forgive nor forget; the naïve forgive and forget;

the wise forgive but do not forget.

                                            -Thomas Szasz, 1920-2012

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:

Birthday: April 7, 1915, Billie Holiday.

GOD BLESS THE CHILD
…Mama may have, papa may have
But God bless the child that’s got his own
That’s got his own…

www.cmgww.com/music/holiday.

On this day in 1994, civil war breaks out in Rwanda

Number of the Day

40%

More than 40% of Americans who borrowed from the government’s main student-loan program aren’t making payments or are behind on more than $200 billion owed, raising worries that millions of them may never repay.

Paul Simon is still feeling experimental after all these years.

The musician announced his 13^th studio album, “Stranger to Stranger” today. In a release, the 11-song set is described as “full of thrilling, imaginative textures,” with Simon utilizing instruments developed by 20^th-century composer Harry Partch, like a “cloud-chamber bowl” and a chromelodeon. Simon traveled to where Partch’s instruments are housed at Montclair State University, in Montclair, N.J. to help with the process.

Fans can get a flavor of Simon’s new sounds on the first single, “Wristband” …Other influences that seep into “Stranger to Stranger” include flamenco music and the sound of Italian EDM artist Clap! Clap!

“Sound is the theme of this album as much as it’s about the subjects of the individual songs. If people get that, I’ll be pleased,” Simon said in a statement. “The right song at the right time can live for generations. A beautiful sound, well, that’s forever.”

“Stranger to Stranger” is his first new studio album since 2011’s “So Beautiful or So What,” which hit No. 4 on the Billboard 200 in April 2011.

2016 is seemingly becoming an increasingly busy time for the 74-year-old songwriter. He recently contributed the theme song to Louis C.K.’s new TV show “Horace & Pete,” and will be starting a two-month tour starting on April 29 at the New Orleans Jazz and Heritage Festival.

“Stranger to Stranger” arrives June 3. –Mike Ayers, Wall Street Journal, April 7, 2016.

I’ll be seeing his concert in Vancouver on May 26^th – I’m a huge fan.

PHOTOS OF THE DAY

Cool temperatures and a beautiful sunrise made perfect conditions for early workouts, like this cyclists crossing the Jackson Hill bridge over Memorial Drive, Thursday, in Houston. Steve Gonzales/Houston Chronicle/AP

A Swiss guard stands guard at the Vatican on Thursday. Alessandro Di Meo/Reuters

Market Closes for April 7^th, 2016

Market Index	Close	Change
Dow Jones	17541.96	-174.09   -0.98%
S&P 500	2041.91	-24.75   -1.20%
NASDAQ	4848.367	-72.348   -1.47%
TSX	13266.44	-81.02
		-0.61%

International Markets

Market Index	Close	Change
NIKKEI	15749.84	+34.48
		+0.22%
HANG SENG	20266.05	+59.38
		+0.29%
SENSEX	24685.42	-215.21
		-0.86%
FTSE 100	6136.89	-24.74
		-0.40%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.167	1.204
CND. 30 Year Bond	1.920	1.961
U.S.    10 Year Bond	1.6906	1.7514
U.S. 30 Year Bond	2.5171	2.5783

Currencies

BOC Close	Today	Previous
Canadian $	0.76049	0.76379
US $	1.31499	1.30926
Euro Rate 1 Euro=		Inverse
Canadian $	1.49585	0.66852
US $	1.13754	0.87909

Commodities

Gold	Close	Previous
London Gold Fix	1242.10	1221.40
Oil	Close	Previous
WTI Crude Future	37.26	37.75

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell for the fifth time in six sessions, as energy producers declined to overshadow a resurgence by Valeant Pharmaceuticals International Inc.

     The Standard & Poor’s/TSX Composite Index lost 0.6 percent to 13,266.44 at 4 p.m. in Toronto. While the Canadian benchmark has lost 1.8 percent in the past six trading days, it is up 2 percent this year and remains one of the best-performing developed markets in the world.

     Stocks worldwide retreated Thursday on concern about growth. Federal Reserve officials highlighted persistent risks facing the global outlook at their March meeting, while International Monetary Fund Managing Director Christine Lagarde signaled the organization may lower its outlook for growth.

     A first-quarter rally in the S&P/TSX has lost momentum in the second, as volatility returned to commodities prices. The Canadian benchmark equity gauge now trades at 21.1 times earnings, about 14 percent higher than the 18.6 times earnings valuation of the S&P 500, according to data compiled by Bloomberg.

     West Texas Intermediate crude slipped 1.3 percent in New York amid speculation that an unexpected U.S. crude supply decline won’t be followed by additional drops. Ahead of a meeting of OPEC producers in Doha later this month to debate a production freeze, Saudi Arabia has said no agreement is possible without the participation of Iran while Kuwait said a deal can still be made.

     Energy producers and financial services stocks contributed the most to losses in the S&P/TSX, as six of 10 industries retreated. Trading volume was about 15 percent lower than the 30-day average. Gold producers rallied as the price of the metal jumped to a one-week high after Fed minutes Wednesday indicated caution on interest rate increases.

     Valeant added 4.3 percent for a third day of gains after winning the support of lenders to waive a default and ease some restrictions on its loan terms. Valeant now has until May 31 to file its annual report, and July 31 to file its first-quarter report. The drugmaker has rebounded from a five-year low, increasing 36 percent in the last three days after saying Tuesday a special “ad hoc” board committee found no additional accounting issues that would require more restatements.

     The drugmaker is also actively discussing the sale of its Bausch and Lomb unit, Fox Business News reported late Thursday, according to unidentified bankers.

US

By Oliver Renick

     (Bloomberg) — The burst of bullishness that lifted U.S. stocks on Wednesday evaporated, with the Standard & Poor’s 500 Index posting the steepest selloff in six weeks amid renewed skepticism over global growth.

     The Dow Jones Industrial Average dropped more than 230 points at its worst levels, while banks in the S&P 500 fell the most since February, pacing declines amid falling bond yields as investors sought havens. A measure of volatility had its biggest spike since January, with today’s selloff echoing action that started the year when lenders were also especially hard hit on flaring growth concerns.

     The S&P 500 fell 1.2 percent to 2,041.91 at 4 p.m. in New York, alternating for a third day between gains and losses of at least 1 percent. The Dow sank 174.09 points, or 1 percent, to 17,541.96. The Nasdaq Composite Index lost 1.5 percent, nearly reversing yesterday’s rally. About 7.2 billion shares traded hands on U.S. exchanges, 14 percent below the three-month average.

     “There’s a bit of a risk-off trade going on,” said Don Ellenberger, senior portfolio manager at Federated Investors which oversees $361 billion in assets. “It’s hard to define a clear trend right now without a whole lot going on, but if you look around the market, earnings is something everyone’s focused on. There’s so much negative sentiment in the market right now, you can see it when you look at the money that’s poured out of equity funds.”

     Stocks have made little progress since snapping a five-week winning streak last month that erased losses from the worst-ever start to a year. The S&P 500 has traded in a 35-point range since the Fed’s March 16 meeting, remaining within 1 percent of the 2,050 level over the past three weeks, as sentiment has lurched from optimism that central-bank policies will buttress global growth to worry their efforts may not be potent enough to fend off a slowdown.

     Bank of America Corp. and JPMorgan Chase & Co. dropped at least 2.5 percent as lenders sold off for the third time in four sessions. A rally in the 10-Year U.S. Treasury amid haven demand sent its yield toward the lowest since the equity market bottomed in February, supporting speculation low rates will weigh on bank profits. Verizon Communications Inc. lost 2.8 percent to weigh on the S&P 500, the steepest decline since August after Jefferies LLC downgraded the shares to hold from buy.

     The Chicago Board Options Exchange Volatility Index jumped 15 percent to 16.16, the biggest climb in three months. The measure of market turbulence known as the VIX closed last week at the lowest since August, and is now headed for the steepest five-day gain since January.

     A plunge in bank shares led a selloff that sent the S&P 500 down as much as 11 percent this year, before it erased its decline by the end of last month. After reaching the highest level since Dec. 29 last Friday, the rebound is losing steam, with the gauge starting this week with the biggest two-day loss in almost two months.

     “There’s a worry that what caused the selloff at the start of the year hasn’t entirely gone away,” said Jasper Lawler, a London-based market analyst at CMC Markets Plc. “The minutes were on balance more dovish than most were expecting, but there’s still a lot of concern about the global economy. Heading into earnings season, people are starting to think ahead with some of the bank earnings coming out next week, and it’s one of the biggest areas of concern.”

     Growth anxieties are returning after stocks rebounded yesterday on rekindled merger speculation in the drug industry and as energy producers surged with crude oil. Minutes from the Federal Reserve’s last meeting affirmed policy makers’ hesitation to raise interest rates as they assessed persistent risks in the global outlook, keeping them wary on the pace of future rate increases.

     Following the latest Fed minutes and Chair Janet Yellen’s reiteration that future rate increases will be gradual, traders are assigning zero percent chance of a raise in April. The first month with at least even odds for a boost has been pushed to February. Prior to last month’s meeting, traders saw a roughly 50 percent chance of higher borrowing costs as early as June.

     Attention is also shifting to corporate earnings, with Alcoa Inc. unofficially kicking off the reporting season on April 11. Analysts project profits fell 9.5 percent in the first quarter, the worst in more than six years.

     As policy makers monitor data for progress in the economy a report today showed fewer Americans filed for unemployment benefits last week, illustrating a healthy labor market that’s allowing workers to feel more secure in their job.

     Amid Thursday’s tumble, all of the S&P 500’s 10 main industries declined, with phone, financial, raw-material and technology companies losing at least 1.2 percent. Utilities were little changed.

     “This is picking up a little bit here when you combine tech with financials both down,” said Scott Wren, a senior equity strategist in St. Louis at Wells Fargo Investment Institute. “It’s been a big bounce off the bottom so you’d expect some consolidation. The rebound has been cyclicals all the way, but the interesting thing today is it’s a mix of cyclicals and defensive stocks at the bottom — the market’s not just leaning one way or the other.”

     Financial companies fell to a four-week low under the drag from banks. In the broader group, Charles Schwab Corp. and E*Trade Financial Corp. declined more than 4.7 percent, with Schwab sinking the most in nearly three months. Goldman Sachs Group Inc. fell 3.1 percent, sliding for a fourth day after last week completing its longest winning streak in almost five months.

     EBay Inc. reversed a 4.3 percent rally yesterday, dropping 5.2 percent as one of the biggest losers in technology and the benchmark index today. F5 Networks Inc. slumped 5.9 percent, the steepest since October, after OTR Global said sales trends appear to be worsening. Semiconductors fell the most in four weeks, with Intel Corp. and Texas Instruments Inc. down at least 1.6 percent.

     Verizon’s drop was the biggest weight on phone companies after the group reached a more than eight-year high on Monday. After rallying 24 percent from an August low, telecommunications shares capped their worst three days since January.

     Costco Wholesale Corp. led consumer staples lower, losing 3 percent after a measure of its March sales missed estimates. Drugstore chains CVS Health Corp. and Walgreens Boots Alliance Inc. fell at least 2.3 percent.

     The Nasdaq Biotechnology Index slipped 1.9 percent after yesterday jumping the most since 2011. Alexion Pharmaceuticals Inc. and Vertex Pharmaceuticals Inc. fell more than 5.4 percent. Relypsa Inc. soared 67 percent, the most ever, after Reuters reported the company is exploring a potential sale.

     Wynn Resorts Ltd. was the strongest performer in the S&P 500, rising almost 12 percent for the best climb in almost two months. The casino owner provided a stronger-than-expected outlook, and Telsey Advisory Group upgraded the shares to the equivalent of buy from hold.

 

Have a wonderful evening everyone.

 

Be magnificent!

It is not others who must change, but you.

Swami Prajnanpad

As ever,

 

Carolann

 

Interpretation is the revenge of the intellect upon art.

                                  -Susan Sontag, 1933-2004

 

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