Category: Events

Dear Friends,

Tangents:

The Poem:  Poetry and walking each invite a kind of meditation,  In this poem, the contemplation of snowflakes – the precise seeing of the external landscape – gives way to the landscape of the speaker’s psyche. –Natasha Trethewey.

SNOWFLAKES

           By Jennifer Grotz

Yesterday they were denticulate as dandelion greens, they
locked together in spokes and fell so weightlessly

I thought of best friends holding hands.
And then of mating hawks that soar into the air to link their claws

and somersault down, separating just before they touch the ground.
Sometimes the snowflakes glitter, it’s more like tinkling

than snow, it never strikes, and I want to be struck, that is
I want to know what to do.  I begin enthusiastically.

I go in  a hurry, I fall pell-mell down a hill, like a ball of yarn’s
unraveling trajectory – down and away but also surprising ricochets

that only after seem foretold.  Yesterday I took  a walk because
I wanted to be struck, and what happened was

an accident: a downy clump floated precisely in my eye.
The lashes clutched it close, melting it against the eye’s hot surface.

And like the woman talking to herself in an empty church
eventually realizes she is praying.  I walked home with eyes that melted snow.

PHOTOS OF THE DAY

 

Vivienne Palmer takes Blue (l.) and Chiquita, both rescue dogs, for a walk in snowy Boulder, Colo., Friday morning. Paul Aiken/Daily Camera/AP

A rainbow glows behind a palm tree near Seal Beach Pier in Seal Beach, Calif., Thursday. Most of California saw sunny skies after days of powerful El Nino-driven storms drenched the region. Matt Masin/The Orange County Register/AP

 

The Flying Scotsman steam engine leaves East Lancashire Railway in Bury, Britain, Friday. The venerable engine, which has toured both the United States and Australia since it was retired from service, made a series of short test runs ahead of a program of heritage journeys this year on Britain’s main lines after a decade of restoration. It is one of the world’s most famous engines. Darren Staples/Reuters

Tourists walk on the beach in Nice, southeastern France, during high tide Friday. Temperatures in the area rose to 18 degrees Celsius (64 Fahrenheit.) Lionel Cironneau/AP

Market Closes for January 8^th, 2016

Market Index	Close	Change
Dow Jones	16346.45	-167.65   -1.02%
S&P 500	1922.03	-21.06   -1.08%
NASDAQ	4643.633	-45.793   -0.98%
TSX	12445.45	-2.76
		-0.02%

International Markets

Market Index	Close	Change
NIKKEI	17697.96	-69.38
		-0.39%
HANG SENG	20453.71	+120.37
		+0.59%
SENSEX	24934.33	+82.50
		+0.33%
FTSE 100	5912.44	-41.64
		-0.70%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.297	1.323
CND. 30 Year Bond	2.061	2.073
U.S.    10 Year Bond	2.1156	2.1491
U.S. 30 Year Bond	2.9094	2.9305

Currencies

BOC Close	Today	Previous
Canadian $	0.70554	0.70833
US $	1.41735	1.41178
Euro Rate 1 Euro=		Inverse
Canadian $	1.54853	0.64578
US $	1.09255	0.91529

Commodities

Gold	Close	Previous
London Gold Fix	1101.85	1106.35
Oil	Close	Previous
WTI Crude Future	33.16	33.27

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks slid for an eighth day and posted the biggest weekly loss since August, as a decline in gold producers overshadowed labor market reports that exceeded expectations.

     The Standard & Poor’s/TSX Composite Index fell 2.76 points to 12,445.45 at 4 p.m. in Toronto, after earlier advancing as much as 0.8 percent. The gauge lost 4.3 percent in the first week of trading in 2016 and capped yesterday a 20 percent plunge from its September 2014 record, hitting a magnitude in declines commonly defined as a bear market. Canada is the second Group of 7 country to see its benchmark enter a bear market, after Germany’s DAX Index did in August.

     Employers in Canada added 22,800 jobs in December, almost three times the median projection by economists who saw an increase of 8,000 jobs, according to a Bloomberg survey. U.S. payrolls surged by 292,000, topping the highest forecast in a Bloomberg survey.

     Underlying concerns remain about the makeup of the gains in employment, Avery Shenfeld, chief economist at Canadian Imperial Bank of Commerce, wrote in a note to clients. Workers designated as employees by Statistics Canada fell by 17,500 while the self- employed category jumped 40,300. Full-time positions also fell, the data show.

     “A nice headline masking a continuing trend for weak hiring by private sector companies,” Shenfeld said. “All of the job growth was in Ontario, consistent with our view that Canada’s largest province is in reasonable shape.”

     The S&P/TSX Gold Index slipped 2.2 percent as the price of the metal, which rallied this week as investors sought a haven, fell 0.5 percent. Barrick Gold Corp. lost 3.4 percent.

     Canada’s resource-rich benchmark has been one of the worst- performing markets in the world in the past year, as oil prices in New York and London collapsed to decade lows. Valuations for Canadian stocks have tumbled about 15 percent to 19.2 times earnings, from a high of 22.7 in April.

     Even as crude extended losses to a 12-year low, Canadian energy producers added 1.1 percent, halting two days of declines.

     Global equity markets closed lower Friday after a chaotic week of trading in which China halted trading twice before suspending a new circuit-breaker system and lowered the reference rate for the yuan. A gauge of developed and emerging nation stocks fell, as the U.S. benchmark Standard & Poor’s 500 Index lost 1.1 percent in New York and posted its worst week since 2011

US

By Lu Wang, Anna-Louise Jackson and Oliver Renick

     (Bloomberg) — U.S. stocks tumbled in a late-afternoon selloff that sent major equity indexes to their worst weekly declines in more than four years, as investors found little relief in moves by China to restore calm to its sinking markets and data that showed resilience in the U.S labor market.

     Bank stocks led the late slide, with JPMorgan Chase & Co. and Citigroup Inc. falling at least 2.2 percent to cap the week with drops of nearly 11 percent. Energy shares in the Standard & Poor’s 500 Index lost 1.3 percent to press deeper into five-year lows. Seven of the benchmark’s 10 main industries sank more than 5.5 percent this week in the gauge’s worst five-day start to a year in data going back to 1928.

     The S&P 500 dropped 1.1 percent to 1,922.03 at 4 p.m. in New York, and fell 6 percent for the week. The Dow Jones Industrial Average sank 167.65 points, or 1 percent, to 16,346.45. The index lost more than 1,000 points this week in its worst opening five-days to a year ever. The Nasdaq Composite Index declined 1 percent, stretching its losing streak to seven days, the longest since 2011.

     “When investors saw there was no traction and the market was unable to hold rallies over several attempts throughout the day, it just became fear of going into the weekend,” said Gene Peroni, a fund manager at Advisors Asset Management Inc. in Conshohocken, Pennsylvania. “The market has just been so reactive to news, people will wait on the sidelines and see what the weekend brings. It has been a rough week.”

     A report today showed a 292,000 gain in jobs last month, exceeding the highest forecast in a Bloomberg survey, after a 252,000 increase in November that was stronger than previously estimated. The unemployment rate held at 5 percent, a seven-year low.

     Worries over contagion from China briefly lessened Friday after officials in the Asian nation set a higher yuan reference rate, suspended a controversial circuit breaker system that had halted stock trading twice since it was implemented at the start of the week and directed state-controlled funds to buy local shares. U.S. equities fluctuated near three-month lows for most of the session before selling accelerated in the final hour.

     The S&P 500 has fallen 7.3 percent since the Federal Reserve raised interest rates last month for the first time in nearly a decade. The central bank balked at boosting borrowing costs in September in part due to turbulence sparked by China’s August currency devaluation. The poor start to 2016 has left the benchmark index 9.8 percent below its all-time high set in May after coming within 1 percent of the record as recently as November. It’s 2.9 percent above the August bottom.

     “We’re still in a risk-off mentality,” said Mark Spellman, a fund manager who helps oversee more than $4 billion at Alpine Funds in Purchase, New York. “I think any kind of risk-on trade mentality that comes in is going to be short-lived until global economic growth improves.”                    

     Fed policy makers have emphasized that progress in economic data will guide their path for future rate increases, which they expect to be gradual. The employment report today showed the jobless rate held at 5 percent, while at the same time worker pay disappointed, rising less than forecast from a year earlier. The Fed is counting on tighter labor conditions to lead to a pickup in wages and inflation.

     Today’s data “is reflective of an underlying momentum that’s in fact accelerating, not decelerating,” said Dan Veru, who helps oversee $3.7 billion as chief investment officer at Fort Lee, New Jersey-based Palisade Capital Management. “There is no wage inflation and there is no commodity inflation. When you have both of these factors, the Fed will be more motivated’’ to hold off raising rates, he said.

     After this week’s turbulence triggered by China, investors will begin to contend with another expected decline in corporate earnings as the reporting season begins. Alcoa Inc., JPMorgan Chase and Intel Corp. are scheduled to deliver results next week. Analysts forecast profits for S&P 500 members fell 6.7 percent last quarter.

     The Chicago Board Options Exchange Volatility Index rose 8.1 percent Friday to 27.01, after erasing an earlier 10 percent drop. The measure of market turbulence known as the VIX is at a three-month high and up 48 percent this month, which would be the most since August’s 135 percent jump. All of the S&P 500’s 10 main industries fell, with financial, health-care and energy shares losing more than 1.3 percent.                      

     Merck & Co. paced declines among health-care companies, losing 1.7 percent as the group fell for the sixth time in seven days and to their lowest level since Oct. 22. Mylan NV and Endo International Plc sank the most, down at least 4.2 percent. The Nasdaq Biotechnology Index declined 1.9 percent amid its longest losing streak in three months.

     Banks in the benchmark posted their worst week in more than four years, down 9.5 percent, while also in the midst of their longest stretch of declines since 2011. JPMorgan Chase, Citigroup Inc. and Bank of America Corp. all fell at least 9.6 percent this week.

     Gap Inc. plunged 14 percent today, its steepest since 2011, after December sales tumbled at its Old Navy chain. The retailer’s shares had rallied 5.7 percent yesterday before the report. Kohl’s Corp. and Nordstrom Inc. lost more than 4.6 percent.

     Teen-apparel seller American Eagle Outfitters Inc. dropped the most in more than five years, down almost 17 percent. Holiday sales missed analysts’ estimates, stoking concerns about a company that had been outshining the rest of its industry.

     Viacom Inc. jumped 5.4 percent, the most since August 2013, to lead a climb among media companies after the shares plunged 45 percent last year. A report said the company will allow investors in March to vote on whether to expand voting rights to all holders. CBS Corp. added 2.5 percent, its biggest gain in two months.

 

Have a wonderful weekend everyone.

 

Be magnificent!

 

When one lives with concepts one never learns.  The concepts become static.

You may change them but the very transformation of one concept to another is still static, is still fixed.

But to have the sensitivity to feel, seeing that life is not a movement of two separate activities,

the external and the inward, to see that it is one, to realize that the inter-relationship is this movement,

is this ebb and flow of sorrow and pleasure and joy and depression, loneliness and escape,

to perceive nonverbally this life as a whole, not fragmented, nor broken up, is to learn.

Krishnamurti

As ever,

 

Carolann

 

The harder the conflict, the more glorious the triumph.

                                    -Thomas Paine, 1737-1809

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:

100: Price (in Chinese yuan, about $1500 US) for a can filled with compressed air from Canada’s Rocky Mountains, enough for 150 breaths, according to Vitality Air.  Intended as a novelty, the first shipment to China sold out in four days, and the company is struggling to meet demand.

4.75 Trillion: Value  (n US dollars)  of global merger activity in 2015, led by the $148.6 billion Pfizer-Allergan merger.  This year exceeded the previous peak reached in 2007.

Today in History:

1927 – Commercial transatlantic telephone service was inaugurated between New York and London.

1942 – The World War II siege of Bataan began.

1953 – President Harry S. Truman announced in his State of the Union address that the United States had developed a hydrogen bomb.

1959 – The United States recognized Fidel Castro’s new government in Cuba.

1989 – Japanese Emperor Hirohito died at age 87.

1996 – A major blizzard paralyzed the eastern United States, claiming more than 100 lives.

PHOTOS OF THE DAY

People dressed in traditional Russian clothes dance during a celebration of Orthodox Christmas in St. Petersburg, Russia, Thursday. Russian Orthodox believers celebrate Christmas by the Julian calendar on Jan. 7. Dmitry Lovetsky/AP

Mongolian-born grand sumo champion Yokozuna Harumafuji (l.) performs the New Year’s ring-entering rite at the annual celebration at the Meiji Shrine in Tokyo Thursday. Yuya Shino/Reuters

Market Closes for January 7^th, 2016

Market Index	Close	Change
Dow Jones	16514.10	-392.41   -2.32%
S&P 500	1943.09	-47.17   -2.37%
NASDAQ	4689.426	-146.339   -3.03%
TSX	12448.21	-278.59
		-2.19%

International Markets

Market Index	Close	Change
NIKKEI	17767.34	-423.98
		-2.33%
HANG SENG	20333.34	-647.47
		-3.09%
SENSEX	25851.83	-554.50
		-2.18%
FTSE 100	5954.08	-119.30
		-1.96%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.323	1.327
CND. 30 Year Bond	2.073	2.085
U.S.    10 Year Bond	2.1491	2.1702
U.S. 30 Year Bond	2.9305	2.9375

Currencies

BOC Close	Today	Previous
Canadian $	0.70833	0.71040
US $	1.41178	1.40765
Euro Rate 1 Euro=		Inverse
Canadian $	1.54218	0.64843
US $	1.09229	0.91551

Commodities

Gold	Close	Previous
London Gold Fix	1106.35	1091.40
Oil	Close	Previous
WTI Crude Future	33.27	33.97

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks sank a seventh straight day, entering a bear market and ending a bull run that lasted two years.

     The Standard & Poor’s/TSX Composite Index sank 2.2 percent to 12,448.21 at 4 p.m. in Toronto, falling 20 percent below its September 2014 record to meet the definition of a bear market. Canada is the second Group of 7 country to see its benchmark equity gauge enter a bear market, after Germany’s DAX Index in August.

     “The cat’s out of the bag in terms of avoiding Canada,” said Ian Nakamoto, director of research at MacDougall MacDougall & MacTier Inc. in Toronto. His firm manages about C$5 billion. “It’s hard to be positive. There doesn’t seem to be any stabilization coming. When markets continue to fall, you can’t help but lose some confidence.”

     Canada’s resource-rich benchmark has been one of the worst- performing markets in the world in the past year, caught at the center of a commodity price storm and growing fears economic growth from China to Europe is slowing at the same time as the prospect of rising U.S. interest rates boosted the dollar.

     A glut in crude supplies collapsed prices to decade-lows, leaving Canada’s oil the cheapest in the world. Energy shares in the S&P/TSX slumped 26 percent last year, the worst-performing among 10 industries. Investors seeking a non-resource haven amassed around health-care stocks until leader Valeant Pharmaceuticals International Inc. plunged amid government scrutiny of its pricing practices.

     The S&P/TSX has posted its longest losing streak since November, with global stocks extending a three-month low and New York crude plunging to a 12-year nadir, pushing closer to $30 a barrel. Valuations for Canadian stocks have tumbled about 15 percent to 19.2 times earnings, from a high of 22.7 in April.

     China’s CSI 300 Index plunged 6.9 percent, triggering the second full-day trading halt this week. The country’s securities regulator later suspended the new stock circuit-breaker system after an emergency meeting to discuss the nation’s tumbling stock market. That’s after the nation’s central bank lowered the reference rate for the yuan, pushing the currency to a five-year low and raising concern about the health of the world’s second- largest economy. China is Canada’s second-largest trading partner after the U.S.

     “There’s a lot of nervousness out there,” said Som Seif, chief executive officer of Purpose Investments Inc. in Toronto. His firm manages about C$1.8 billion ($1.28 billion). “China devalued the yuan and the pace is scaring people.”

     Broad losses among Canada’s banks, energy producers, industrial and consumer stocks paced declines with the S&P/TSX. Royal Bank of Canada and Toronto-Dominion Bank, the largest lenders in the nation, lost at least 1.8 percent as financial shares dropped to a four-month low.

     The Canadian market will continue to struggle until oil prices rebound, as many of the largest and most important parts of the economy including banks are tied to the industry, said David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates Inc. in an interview in Toronto.

     “Canada has a ‘For Sale’ sign on the front lawn,” Rosenberg said. “The key to any turnaround will be the price of oil, and not just for the energy sector.”

     Crescent Point Energy Corp. slumped 12 percent, among the biggest decliners in the S&P/TSX Energy Index. The oil producer cut its planned capital spending in 2016 by as much as 39 percent compared with 2015 estimates. Fifty-three of 55 members in the group declined.

     Base metals producers joined the retreat, with First Quantum Minerals Ltd. slumping 8.2 percent and Teck Resources Ltd. declining 8.7 percent as copper futures fell to less than $2 a pound for the first time in more than six years.

     Smartphone maker BlackBerry Ltd. sank 8.9 percent, the biggest retreat in a year, after the company said it will unveil at least one more Android device this year.

     Meanwhile, gold producers have been a relative island of calm in the Canadian market with the S&P/TSX Gold Index rallying 14 percent so far this year as the metal climbed above $1,100 an ounce. Barrick Gold Corp. jumped 10 percent to the highest level since July.

     “Gold is finally looking more positive than negative,” Kerry Smith, an analyst at Haywood Securities Inc., said by phone from Toronto. “The stocks have been beaten up for so long. It’s kind of a safe haven trade.”

US

By Oliver Renick

     (Bloomberg) — U.S. stocks tumbled to press three-month lows, with the Dow Jones Industrial Average dropping more than 390 points to post its biggest two-day retreat since August, amid a China-led rout that continued to engulf markets around the globe.

     Banks and technology companies paced the retreat, marking their biggest declines in four months, with Citigroup Inc. and Apple Inc. down more than 4.2 percent. Yahoo! Inc. slid 6.2 percent, the most since May. Boeing Co. and General Electric Co. dropped more than 4.1 percent, two of Dow’s three worst today. Energy shares in the Standard & Poor’s 500 Index declined to a five-year low.

     The S&P 500slid 2.4 percent to 1,943.09 at 4 p.m. in New York, falling to its lowest since Oct. 1 in the worst four-day start to a year in data going back to 1928. The Dow lost 392.41 points, or 2.3 percent, to 16,514.10 and has fallen more than 900 points this week. The Nasdaq Composite Index dropped 3 percent. About 10 billion shares traded hands on U.S. exchanges, 42 percent above the three-month average.

     “China devaluing its currency sparks concern that the global growth engine is starting to slow and that creates a dump of any high-flying stocks or anything people perceive as risk,” said Yousef Abbasi, a market strategist at JonesTrading Institutional Services in New York. “When you start to worry about growth, you have crude oil down and it all ties together. It’s the new year and people are scratching their heads, they’re not quite ready to buy the dip.”

     Equity markets worldwide tumbled after Chinese stock exchanges closed less than a half hour after opening, as a more than 7 percent plunge triggered a market-wide halt for the second time this week. China’s securities regulator has since suspended a new stock circuit-breaker that caused the halts.

     A flight from risky assets in the first week of the new year has wiped $2.5 trillion from global equities, made worse by China’s central bank cutting its yuan reference rate for an eighth straight day. China’s tolerance for a weaker yuan is being seen as evidence policy makers are struggling to revive an economy that’s the world’s biggest consumer of energy, metals and grains.

     The move revived the angst that sent financial markets into turmoil last summer, driving U.S. stocks to three-month lows yesterday in a selloff led by commodity producers. Comments by billionaire George Soros exacerbated market jitters after he told an economic forum in Sri Lanka today that global markets are facing a crisis and investors need to be very cautious.

    Commodity shares remained weak, with copper producer Freeport-McMoRan Inc. tumbling 9.1 percent and Alcoa Inc. down 4 percent. West Texas Intermediate crude futures briefly wiped out a drop of more than 5 percent before the rebound withered, and its settled 2.1 percent lower. Anadarko Petroleum Corp. lost 8.4 percent, and Chevron Corp. fell 3.5 percent after its biggest slide since August yesterday.

     A weaker yuan would support China’s flagging export sector, but it also boosts risks for the nation’s foreign-currency borrowers, and heightens speculation that the slowdown in Asia’s biggest economy is deeper than official data suggest.

     While investors cope with the turbulence sparked by China, another source of consternation is looming as the corporate earnings season for 2015’s final quarter soon begins. Alcoa Inc., JPMorgan Chase & Co. and Intel Corp. are scheduled to report results next week. Analysts forecast profits for companies in the S&P 500 fell 6.1 percent last quarter.

     “The market has been in denial,” said Michael Ingram, a market strategist at BGC Partners in London. “The broader issue is that growth dynamics are weak pretty much everywhere. Make no mistake, what happens in China this year will shape the market dynamic for the next five.”                      

     The Chicago Board Options Exchange Volatility Index rose 21 percent to 24.99, its highest since Sept. 29. The measure of market turbulence known as the VIX is up 37 percent so far this month, which would be the most since a record-setting 135 percent jump in August.

     The S&P 500 has fallen 6.3 percent since Federal Reserve raised interest rates last month for the first time in nearly a decade. The central bank balked at boosting borrowing costs in September in part due to turbulence sparked by China’s August currency devaluation. The poor start to 2016 has left the benchmark index 8.8 percent below its all-time high set in May after coming within 1 percent of the record as recently as November.

     Fed Bank of Richmond President Jeffrey Lacker reiterated in a speech Thursday that the pace of interest-rate increases is expected to be gradual, but dependent on the economic outlook. He also expressed confidence inflation will move back to the Fed’s 2 percent goal “over the near term.” Chicago Fed President Charles Evans said he’s less optimistic on inflation than his colleagues, making a case for an especially cautious approach to raising rates in 2016.

     A report today showed fewer Americans filed applications for unemployment benefits last week, a sign the labor market remained robust entering 2016. The government’s December jobs report is due Friday, with economists surveyed by Bloomberg forecasting a 200,000 gain and an unemployment rate holding at 5 percent.                         

     All 10 of the S&P 500’s main industries fell Thursday, with financial, industrial and technology shares down more than 2.8 percent. Utilities slid less than 0.8 percent to end as the day’s best performers.

     The KBW Bank Index dropped for a sixth day, down 3.3 percent amid its longest streak of losses since 2012. Capital One Financial Corp. and State Street Corp. lost more than 4.5 percent, falling to their lowest in more than two years. JPMorgan Chase & Co. slid 4 percent, its worst decline in four months.

     A day after being one of the market’s bright spots, airlines were among the worst performers, with a Bloomberg index of U.S. carriers tumbling to its lowest since Oct. 8. SkyWest Inc. reversed a 4.9 percent rally Wednesday, losing 8.4 percent. JetBlue Airways Corp. fell 4.9 percent to a six-month low. The Dow Jones Transportation Average sank 3.1 percent to the lowest in more than two years.

     Homebuilders were battered for a second day, led by an 15 percent decline in KB Home, the biggest in nearly a year. The company reported fiscal fourth-quarter earnings that missed analysts’ estimates, as bad weather and labor shortages delayed some deliveries. Toll Brothers Inc. sank 5.5 percent.

     Among shares bucking today’s negative trend, Macy’s Inc. added 2.1 percent after announcing plans to cut costs and explore options for its real estate following a worse holiday period than the the largest U.S. department-store company expected.

     Beaten-down Wal-Mart Stores Inc. continued to rally, up 2.3 percent to add to its longest winning streak in two months. The retailing giant fell 29 percent last year, its worst annual decline since 1974. Gap Inc. rose for the third time in four days, up 5.7 percent. The apparel seller plunged 41 percent in 2015, the most in 14 years.

     Signet Jewelers Ltd. advanced 4.7 percent, its best gain in four months, after raising the bottom end of its fourth-quarter profit and sales forecasts. The retailer’s shares have rallied 16 percent during the past three weeks.

 

Have a wonderful evening everyone.

 

Be magnificent!

You are the product of your environment.

That is why you are not able to see beyond the habits and social conventions

that are rooted deep within you.  If you wish to see beyond them,

you must first of all free yourself from the normal way in which you interpret facts.

Swami Prajnanpad

As ever,

 

Carolann

 

It always seems impossible until it’s done.

                  -Nelson Mandela, 1918-2013

 

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:

Carnivale season begins today…

It is also Three Kings Day or Twelfth Day, also known as the Epiphany (from the Greek, epiphaneia, meaning “appearance” or “manifestation.”  It is in commemoration of the manifestation of Christ to the Wise Men from the East.  It also marks the official ending of Christmas, as the twelfth day after December 25^th.  Tradition calls the three Magi, Melchior, Gaspar and Balthazar; the first offered gold as the emblem of royalty, the second, Frankincense, in token of divinity and the third, myrrh, in prophetic allusion to the persecution unto death that awaited.  Melchior means “my king of light” from the Hebrew, malki-or, Gaspar, which is the same name as Jasper, has been derived from the Old Persian Kansbar, “treasurer” and Balthazar is a corrupt form of the Aramaic name Belshazzar, itself from Babylonian Belu-sharu-usur, “Bel protect the king.”

Among the ancient Medes and Persians the Magi were members of a priestly caste credited with great occult powers, and in Camoens’ Lusiad (1572) the term denotes Indian Brahmans.  Ammianus Marcellinus says the Persian magi derived their knowledge from  the Brahmans of India, and Arianus expressly calls the Brahmans “magi.”

All over Orthodox Europe today, celebrations of the epiphany occur:

 

People parade through the streets as part of celebrations on Three Kings Day in downtown Vilnius, Lithuania, Wednesday. Epiphany, the 12th night of Christmas, marks the day the three wise men visited Christ. Mindaugas Kulbis/AP

PHOTOS OF THE DAY

Simon Ammann of Switzerland soars through the air during the first competition round of the final jumping at the 64th four-hills ski jumping tournament in Bischofshofen, Austria, Wednesday. Dominic Ebenbichler/Reuters

Members of the Edo Firemanship Preservation Association display their balancing skills atop bamboo ladders during a New Year demonstration by the fire brigade in Tokyo Wednesday. Yuya Shino/Reuters

Market Closes for January 6^th, 2016

Market Index	Close	Change
Dow Jones	16906.51	-252.15   -1.47%
S&P 500	1990.26	-26.45   -1.31%
NASDAQ	4835.766	-55.664   -1.14%
TSX	12726.80	-193.34
		-1.50%

International Markets

Market Index	Close	Change
NIKKEI	18191.32	-182.68
		-0.99%
HANG SENG	20980.81	-207.91
		-0.98%
SENSEX	25406.33	-174.01
		-0.68%
FTSE 100	6073.38	-63.86
		-1.04%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.327	1.377
CND. 30 Year Bond	2.085	2.132
U.S.    10 Year Bond	2.1702	2.2357
U.S. 30 Year Bond	2.9375	2.9951

Currencies

BOC Close	Today	Previous
Canadian $	0.71040	0.71540
US $	1.40765	1.39783
Euro Rate 1 Euro=		Inverse
Canadian $	1.51725	0.65909
US $	1.07786	0.92777

Commodities

Gold	Close	Previous
London Gold Fix	1091.40	1077.00
Oil	Close	Previous
WTI Crude Future	33.97	35.97

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — The materials trade that battered Canadian stocks through much of last year is proving to be the equity market’s saving grace at the start of 2016.

     A 7.2 percent rally among gold producers in the Standard & Poor’s/TSX Composite Index so far this year has softened the impact from waves of negative news that have roiled major markets elsewhere. The benchmark Canada stock gauge is still down for the sixth straight day as energy shares led losses.

     Investors seeking a haven from turmoil in the market are turning once again to gold as the metal posted its longest winning streak since October, buoyed by the selloff in equities and North Korea’s nuclear test. Barrick Gold Corp. jumped 4.6 percent. Gold producers in the S&P/TSX have declined for five straight years.

     “People now are getting legitimately concerned and wondering where can you go?” said Bruce Campbell, a fund manager at StoneCastle Investment Management in Kelowna, British Columbia. His firm manages about C$100 million. 

     Campbell is keeping his cash positions out of the market for now while waiting for more economic stability. “You start to wonder what the consensus trade is and you have to start looking the other way and what’s going to change,” he said. “‘Treasuries are low and the stock markets are down so let’s hold gold.”’

     The Canadian benchmark, one of the worst-performing markets in the developed world in 2015, has lost only 2.2 percent in three days of trading, outperforming stock gauges in Germany and the U.S. The index has posted the sixth-smallest loss this year out of 24 developed equity markets tracked by Bloomberg. Valuations of Canadian stocks have fallen 13 percent from an April high, to 19.7 times earnings.

     The S&P/TSX dropped 193.34 points, or 1.5 percent, to 12,726.80 at 4 p.m. in Toronto, about 30 index points away from a two-year low. Global stocks retreated to a three-month low as Brent crude plunged to an 11-year nadir. The Bloomberg Commodity Index slid a third straight day.

     China’s central bank lowered the reference rate for the yuan, pushing the currency to a five-year low and raising concern about the economic health of the world’s second-largest economy. China rocked financial markets when it last devalued the currency in August, sparking a rout in emerging-market currencies and stocks. Canada’s dollar touched a 12-year low as bets mount the Bank of Canada will drop interest rates to a record low this year. China is Canada’s second-largest trading partner after the U.S.

     Encana Corp. and Canadian Natural Resources Ltd. fell at least 4.3 percent as all 55 members of the S&P/TSX Energy Index retreated. The industry, the worst-performing in the broader S&P/TSX last year, fell 3.2 percent today, for the most in three weeks. Crude in New York dropped to less than $34 a barrel after supplies at the U.S. hub rose to a record.

     Royal Bank of Canada and Toronto-Dominion Bank fell at least 1.6 percent as financial services stocks sank 1.7 percent as a group, for a three-month low.

     Magna International Inc., the largest North American auto- parts supplier, fell a seventh straight day to match the longest losing streak since April, and Linamar Corp. tumbled 5.2 percent to a November low. U.S. automakers Ford Motor Co. and General Motors Co. fell in New York yesterday after missing December sales estimates, and extended declines Wednesday.

     Valeant Pharmaceuticals International Inc. rose 2.1 percent for a second day of gains. The drugmaker named former Chief Financial Officer Howard Schiller to run the company while Chief Executive Officer Michael Pearson remains hospitalized with severe pneumonia. Pearson is on medical leave and the timing of his return remains uncertain, the company said in a statement.

US

By Oliver Renick and Dani Burger

     (Bloomberg) — U.S. stocks tumbled to three-month lows, following equities around the world after China weakened its currency, stoking investor concern that a slowdown in the world’s second-largest economy will damp global growth.

     Energy and raw-material companies in the Standard & Poor’s 500 Index led the selloff, losing at least 2.6 percent as China’s move revived the angst that sent financial markets into turmoil last summer. Chevron Corp. declined 4 percent, while copper producer Freeport-McMoRan Inc. slid 8.1 percent. Seven of the benchmark’s 10 main industries dropped at least 1 percent.

     The S&P 500 lost 1.3 percent to 1,990.26 at 4 p.m. in New York, trimming a drop of as much as 1.9 percent while sliding to its lowest level since Oct. 6. The Dow Jones Industrial Average fell 252.15 points, or 1.5 percent, to 16,906.51, bringing its three-day loss to 3 percent, its worst start to a year since 2008. The Nasdaq Composite Index dropped 1.1 percent. About 8.2 billion shares traded hands on U.S. exchanges, 17 percent higher than the three-month average.

     “This is risk aversion right now,” said Benjamin Dunn, president of Alpha Theory Advisors, which works with hedge funds overseeing about $6 billion. “Not a lot of people had conviction coming into the year after a violently flat to down year, and now we’re perhaps getting confirmation that China is as bad as people think. We’ve lost the tailwinds from the Fed and investor enthusiasm, and this adds to the mosaic of fear that’s out there right now.”

     China’s central bank set the yuan’s reference rate at an unexpectedly weak level, adding to anxiety about an economic slowdown that has dominated markets this week. The S&P 500 on Monday kicked off 2016 with its worst start in 15 years. Adding to geopolitical worries, North Korea claims it successfully tested its first hydrogen bomb, which follows a recent buildup of tension between Saudi Arabia and Iran.

     Commodity producers fell amid speculation that weakness in China would weigh on demand for raw materials. Brent crude oil dropped below $35 a barrel to its lowest since 2004, while West Texas Intermediate futures lost more than 5 percent. Apache Corp. and Murphy Oil Corp. tumbled 11 percent to the steepest losses in seven years.

     China’s currency devaluation last August triggered a global rout that drove the S&P 500 to its first correction in four years, after it had reached an all-time high as recently as May. Now, UBS Group AG’s technical strategists predict the U.S. benchmark will enter a bear market as early as this year.                        

     The S&P 500 has fallen 2.6 percent in the first three days of the year. That’s better than the 2.7 percent plunge to start 2015, which marked the worst opening since 2008. The index swung wildly last January before ending the month lower by 3.1 percent. The poor start to 2016 has left the benchmark index 6.6 percent below its all-time high set in May.

     Sentiment has turned more cautious on stocks after the Federal Reserve’s first interest-rate increase since 2006 and forecasts for little to no growth in corporate earnings until the spring. Fed officials have stressed that while the pace of future hikes will be gradual, it will depend on progress in economic data.

     A report Wednesday showed companies added more workers than projected in December, indicating the job market had momentum as 2015 came to a close. Separate data showed service companies continued to outperform their manufacturing counterparts last month as orders and employment picked up. Another report said factory orders in November fell, in line with forecasts from economists surveyed by Bloomberg.

     Equities offered little reaction to the Fed’s latest meeting minutes, which showed some policy makers saw the decision to raise interest rates as a “close call.” Minutes from the December gathering said “almost all” of the rate-setting committee’s participants were satisfied the criteria for tighter policy had been met.                     

     The Chicago Board Options Exchange Volatility Index rose 6.5 percent to 20.59, after earlier surging as much as 13 percent. The measure of market turbulence known as the VIX jumped nearly 14 percent Monday to a three-week high, before slipping 6.6 percent yesterday.

     “I don’t know we’ll see a panic unless we see it extend for several more days,” said David Spika, global investment strategist for GuideStone Capital Management. “We started the year with a low level of conviction. We’ve conditioned our clients for much higher levels of volatility — to expect the market to go straight up is not very smart.”

     While investors cope with turbulence sparked by China, another source of consternation is looming as the corporate earnings season for 2015’s final quarter soon begins. Alcoa Inc. is scheduled to report results on Monday, with JPMorgan Chase & Co. and Intel Corp. also due next week. Analysts forecast profits for companies in the S&P 500 fell 6.1 percent last quarter.

     Energy companies in the benchmark index, which are forecast to post a 68 percent drop in fourth-quarter earnings, were the hardest hit group Wednesday, falling 3.6 percent to the lowest level since August.                       

     Ford Motor Co. and General Motors Co. continued their losing streaks, down at least 3.5 percent after sales reports yesterday disappointed. GM fell for an eighth day, the longest stretch in five months. AutoNation Inc. tumbled 11 percent, the most since 2009, after saying it expects to report significant margin declines for the fourth quarter amid a tougher sales environment.

     “Sentiment right now is tarnished partially over earnings but also because the pace of global growth is slow and geopolitical tensions are rising,” said Terry Sandven, who helps oversee $126 billion as chief equity strategist at U.S. Bank Wealth Management in Minneapolis. “In the absence of earnings visibility and given global headwinds, we’re in store for a market going sideways to down.”

     Among the few bright spots Wednesday, Netflix Inc. jumped 9.3 percent, the most since July and the online video company’s first gain in five days. It began selling its streaming service in India and more than 100 other countries, a major step toward its goal of becoming the first global online television service.

 

Have a wonderful weekend everyone.

 

Be magnificent!

How can we be free to look and learn when our minds from the moment we are born

to the moment we die are shaped by a particular culture in the narrow pattern of “me?”

For centuries we have been conditioned by nationality, caste, class, tradition,

religion, language, education, literature, art, custom, convention,

propaganda of all kinds, economic pressure, the food we eat, the climate we live in,

our family, our friends, our experience – every influence you can think of –

and therefore our responses to every problem are conditioned.

Are you aware that you are conditioned?

Krishnamurti

As ever,
 

Carolann

Expect problems and eat them for breakfast.

                              -Alfred A. Montapert

 

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:

Just returned last night from spending the holidays in New Zealand.  What a beautiful country – breath-taking scenery, fabulous people and great sailing too.   We went fly-fishing one day – our first time – and we both loved it.  By the end of the first day, I began to understand the aesthetic quality of this beguiling activity. 

Talk soon and the very best to you and yours in this New Year that lies ahead.

Warmest regards, Carolann.

PHOTOS OF THE DAY

A campaigner against the building of a third Heathrow Airport runway helps plant black paper planes in Victoria Gardens next to Parliament in London, Tuesday. 2,000 planes were planted, the estimated number of planes that would use the new runway daily. Kirsty Wigglesworth/AP

People visit ice sculptures illuminated by color lights on the opening day of the Harbin International Ice and Snow Festival in the northern city of Harbin, Heilongjiang province, China, Tuesday. Aly Song/Reuters

Market Closes for January 5^th, 2016

MarketIndex	Close	Change
DowJones	17158.66	+9.72  +0.06%
S&P 500	2016.71	+4.05  +0.20%
NASDAQ	4891.430	-11.659  -0.24%
TSX	12920.14	-7.01
		-0.05%

International Markets

MarketIndex	Close	Change
NIKKEI	18374.00	-76.98
		-0.42%
HANGSENG	21188.72	-138.40
		-0.65%
SENSEX	25580.34	-43.01
		-0.17%
FTSE 100	6137.24	+43.81
		+0.72%

Bonds

Bonds	% Yield	Previous  % Yield
CND.10 Year Bond	1.377	1.399
CND.30 Year Bond	2.132	2.137
U.S.   10 Year Bond	2.2357	2.2428
U.S.30 Year Bond	2.9951	2.9872

Currencies

BOC Close	Today	Previous
Canadian $	0.71540	0.71712
US$	1.39783	1.39447
Euro Rate1 Euro=		Inverse
Canadian $	1.50351	0.66511
US$	1.07560	0.92971

Commodities

Gold	Close	Previous
London GoldFix	1077.00	1082.25
Oil	Close	Previous
WTI Crude Future	35.97	36.76

Market Commentary:

Canadian

By Eric Lam

     (Bloomberg) — Canadian stocks fell a fifth day, the longest streak of losses since November, as declines among retail and raw material companies offset a rebound in energy producers.

     The Standard & Poor’s/TSX Composite Index dropped 7.01 points to 12,920.14 at 4 p.m. in Toronto, paring earlier losses of as much as 0.7 percent. The gauge had its worst opening day yesterday since 2005.

     Magna International Inc., the largest North American auto- parts supplier, fell a sixth straight day after U.S. automakers Ford Motor Co. and General Motors Co. tumbled in New York after missing December sales estimates.

     Fertilizer maker Potash Corp. of Saskatchewan Inc. dropped 2.4 percent to lead raw-materials producers lower. Industrial shares also fell. Canadian National Railway Co. fell 1.3 percent and struggling airplane manufacturer Bombardier Inc. dropped 2.2 percent.

     Energy stocks reversed losses in the final hour of trading. Canadian Natural Resources Ltd. added 2.1 percent and Encana Corp. increased 3.7 percent. Oil fell to a two-week low, holding losses below $37 a barrel in New York ahead of U.S. government supply data Wednesday forecast to be little-changed, according to a Bloomberg survey.

     Valeant Pharmaceuticals International Inc. rose 2.8 percent. Shares had lost 3.2 percent in the last two trading sessions after a regulatory filing on Thursday showed Bill Ackman, the activist investor who has been a staunch defender of Valeant, trimmed his fund’s holdings of the stock for tax reasons. Ackman’s Pershing Square Capital Management sold about 5 million shares of Valeant in order to create a tax loss for investors in two accounts.

US

By Oliver Renick and Dani Burger

     (Bloomberg) — U.S. stocks closed little changed after China’s move to stabilize its financial markets left investors to focus on the prospects for global growth amid renewed selling in crude oil and weaker-than-expected auto sales.

     Gunmakers Smith & Wesson Holding Corp. and Sturm Ruger Co. surged at least 6.7 percent as President Barack Obama unveiled tougher restrictions on arms sales. Wal-Mart Stores Inc., a firearms seller, climbed 2.4 percent. General Motors Co. and Ford Motor Co. slumped after their December sales disappointed. Apple Inc., the world’s most valuable company, closed at its lowest since 2014 on a report it may cut production of an iPhone model. Walt Disney Co. slid 2 percent, down for a fifth day.

     The Standard & Poor’s 500 Index rose 0.2 percent to 2,016.71 at 4 p.m. in New York, after wavering between gains and losses following the gauge’s 1.5 percent drop on Monday. The Dow Jones Industrial Average added 9.72 points to 17,158.66. The Nasdaq Composite Index declined 0.2 percent. About 7 billion shares traded hands on U.S. exchanges, in line with the three- month average.

     “Overall, yesterday wasn’t too bad and may have even been an overreaction,” said Mark Kepner, an equity trader at Themis Trading LLC in Chatham, New Jersey. “We’ve been through this before with China — they’re in the process of changing their economy, you’re going to have ups and downs with that and it’s going to keep happening.”

     Stocks in China rose Tuesday in volatile trading, stabilizing after weaker factory data from the world’s second- largest economy sparked a worldwide selloff on Monday. State- backed funds were said to intervene after yesterday’s 7 percent plunge in the CSI 300 Index of large-capitalization companies listed in Shanghai and Shenzhen wiped out $590 billion of market value. European equities also climbed after a 2.5 percent rout on Monday.

     Even as yesterday ranked as the sixth-worst start to a year for the S&P 500 since 1932, the move is less surprising when compared with how the gauge usually fares. The index has moved an average 1.1 percent in either direction on opening day, compared with an average daily move of 0.77 percent on all other days.

     Following Monday’s selloff, investors stuck with what worked last year. Health-care and consumer staples shares, two of 2015’s best performers, were among the leaders. Technology shares slipped the most under Apple’s drag. Seven of the S&P 500’s 10 main industries rose, with phone companies posting the strongest advance.

     Sentiment has turned more cautious on stocks amid the Federal Reserve’s first interest-rate increase since 2006, and forecasts for little to no growth in corporate earnings before the spring. Strategists at Citigroup Inc. cut their view on U.S. equities to underweight Tuesday, saying that while they’re not especially bearish, they see better opportunities in Europe and Japan. “After outperforming for six consecutive years, maybe U.S. equities are due a breather,” the firm wrote in a note.

     The main U.S. equity benchmark slipped 0.7 percent in 2015 to cap its first annual drop since 2011, after reaching a record in May and suffering its first correction in four years in August amid concerns that China’s slowdown would crimp global growth.

     Fed officials expect the pace of future rate increases to be gradual, though they have stressed that the path depends on progress in economic data. A report Monday showed the fastest contraction in U.S. manufacturing in six years, adding to worries that weakness in China’s economy is spreading. Investors will look for further clues this week in data on services industry growth, factory activity, employment and minutes from the Fed’s December meeting.

     The Chicago Board Options Exchange Volatility Index fell 6.5 percent to 19.34. The measure of market turbulence known as the VIX jumped nearly 14 percent Monday, the most since Dec. 11 when the S&P 500 dropped 1.9 percent.

     “What people are looking at are the big three — global growth, especially Chinese growth, the impact of energy and a Fed that’s now in play,” said Stephen Wood, who helps manage $237 billion as chief market strategist for North America at Russell Investments in New York. “Oil is going to continue to be a volatile factor, not only in the broader market but also earnings.”

     Energy companies in the S&P 500 rose, erasing an earlier decline even as West Texas Intermediate crude sank more than 2 percent. Transocean Ltd. and Ensco Plc slipped more than 3.1 percent, which was overshadowed by Valero Energy Corp. and Occidental Petroleum Corp. climbing at least 1.6 percent. Oil dropped to a two-week low on speculation that a government report will show U.S. crude inventories climbed last week.                         

     Among shares moving on corporate news, Apple sank to its lowest level in more than 14 months and weighed on the technology group after Japan’s Nikkei Asian Review reported the company would reduce the output of its latest iPhones by about 30 percent in the first quarter of 2016. Apple supplier Skyworks Solutions Inc. lost 6 percent to its lowest in nearly a year.

     General Motors fell 2.6 percent to a three-month low after December sales disappointed. The fallout hit parts maker Delphi Automotive Plc and Goodyear Tire & Rubber Co., which dropped more than 2.7 percent. Dealer AutoNation Inc. lost 3.3 percent to its lowest since Sept. 29.

     Gunmaker shares rallied on speculation that sales of firearms will rise after President Barack Obama unveiled on Tuesday a package of executive actions to expand background checks.

     Smith & Wesson gained 11 percent to a record and Sturm Ruger added 6.8 percent to a five-month high. Gun sales have surged in recent years any time the threat of new restrictions has made news, normally in the aftermath of mass shootings.

     Wal-Mart led the Dow for a second day, rising 2.4 percent to its highest since Oct. 13 as gun sellers also advanced. The retail giant is recovering from a 29 percent plunge last year, the most since 1974. Dick’s Sporting Goods Inc. and Cabela’s Inc. rose at least 1.3 percent.

     Joining Wal-Mart to boost the consumer staples group, cigarette makers Reynolds American Inc. and Altria Group Inc. gained more than 2 percent. Grocery chain Kroger Co. added 2.3 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

Have you ever tried living with yourself?

If so, you will begin to see that yourself is not a static state,

it is a fresh living thing.

And to live with a living thing your mind must also be alive.

And it cannot be alive if it is caught in opinions, judgements, and values.

Krishnamurti

As ever,

 

Carolann

 

Start where you are. Use what you have.  Do what you can.

                                             -Arthur Ashe, 1943-1993

 

 

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:

PHOTOS OF THE DAY

Actors perform during a fire and smoke festival as they celebrate Orthodox Christmas in St. Petersburg, Russia, Monday. Russians continue to celebrate the New Year and Orthodox Christmas from Jan. 1 to 10. Dmitry Lovetsky/AP

People look around ice sculptures ahead of the Harbin International Ice and Snow Festival in the northern city of Harbin, Heilongjiang province, China, Monday. Aly Song/Reuters

Market Closes for January 4^th, 2016

Market Index	Close	Change
Dow Jones	17148.94	-276.09   -1.58%
S&P 500	2012.66	-31.28   -1.53%
NASDAQ	4903.089	-104.323   -2.08%
TSX	12927.15	-82.80
		-0.64%

International Markets

Market Index	Close	Change
NIKKEI	18450.98	-582.73
		-3.06%
HANG SENG	21327.12	-587.28
		-2.68%
SENSEX	25623.35	-537.55
		-2.05%
FTSE 100	6093.43	-148.89
		-2.39%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.399	1.401
CND. 30 Year Bond	2.137	2.157
U.S.    10 Year Bond	2.2428	2.2943
U.S. 30 Year Bond	2.9872	3.0335

Currencies

BOC Close	Today	Previous
Canadian $	0.71712	0.72039
US $	1.39447	1.38814
Euro Rate 1 Euro=		Inverse
Canadian $	1.51053	0.66202
US $	1.08323	0.92317

Commodities

Gold	Close	Previous
London Gold Fix	1082.25	1060.00
Oil	Close	Previous
WTI Crude Future	36.76	36.60

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — At least for one day, Canada’s stock market benefited from its resource-heavy tilt as a rally in gold producers helped minimize damage during the worst global equity selloff to start a year in at least three decades.

     While broad losses among banks and railway operators paced a 0.6 percent drop in the Standard & Poor’s/TSX Composite Index, the benchmark had one of the best performances among developed- nation gauges tracked by Bloomberg. A global stock index tumbled 2 percent for its worst inaugural session since at least 1988, as weak manufacturing figures from the U.S. and China, the world’s two biggest economies, sparked concern that growth will slow.

     Canadian shares still delivered their worst opening day since 2005, with the S&P/TSX falling 82.80 points to 12,927.15 at 4 p.m. in Toronto. The gauge pared earlier losses of 2 percent as energy shares clawed back most of a 2 percent rout and gold miners rallied 4.2 percent as the metal’s price rose on haven demand. Royal Bank of Canada and Toronto-Dominion Bank, the largest lenders, sank at least 1 percent.

     The equities selling started in China, where investors scrambled for the exits after the CSI 300 Index plunged 7 percent, triggering a halt for the day after an earlier 15- minute suspension at 5 percent failed to stop the retreat. European shares lost 2.5 percent and the S&P 500 in the U.S. fell 1.5 percent.

     “If you want to be bearish, there’s a lot to be concerned about,” said Greg Taylor, a fund manager at Aurion Capital Management in Toronto. His firm manages about C$7.2 billion. “It’s certainly not a good headline and it doesn’t help sentiment at all. But it does feel some of the worst news is priced in.”

     The Canadian benchmark index sank 11 percent in 2015, the biggest annual slide since 2008 as a combination of slowing growth in China and Europe, a glut in crude production and the prospect of increasing U.S. lending rates buffeted Canadian stocks.

     The Caixin factory index, a measure of manufacturing, came in at 48.2 in December, short of the median analyst estimate of 48.9 in a Bloomberg survey. The nation’s first official economic report of 2016 on Jan. 1 signaled manufacturing weakened for a fifth month, the longest such streak since 2009. Figures also showed U.S. manufacturing contracting at the fastest pace in six years.

     Canadian stocks may finally be able to outperform their U.S. peer S&P 500 for the first time since 2010 this year if the price of resources from crude to gold rebounds, Taylor said. Geo-political risks such as the rising tension between oil producers Iran and Saudi Arabia, which had taken a backseat to supply and demand concerns in 2015, may return to the forefront, he said.

     “The one thing Canadian investors had been hoping for last year was for a peak in the U.S. dollar,” Taylor said. “The Canadian market is starting to show some strength. Sell the winning trades and a reversion into lagging trades in gold and oil. If this trend were to hold then maybe Canada will start to outperform the U.S.”

US

By Oliver Renick

     (Bloomberg) — U.S. stocks tumbled to begin 2016, with the Standard & Poor’s 500 Index off to its worst start in 15 years as a rout in Chinese equities renewed concern that an economic slowdown there will damp global growth.

     Investors returning to the market after the New Year holiday faced a worldwide selloff sparked by weak factory data in China, while a reading that showed the fastest contraction in U.S. manufacturing in six years bolstered anxiety that slowing growth in the world’s second-largest economy is spreading. A flareup in tension between Saudi Arabia and Iran added to the unease.

     The S&P 500 Index fell 1.5 percent to 2,012.66 at 4 p.m. in New York, after sliding as much as 2.7 percent as equities pared losses in the final 30 minutes of trading. The Dow Jones Industrial Average lost 276.09 points, or 1.6 percent, to 17,148.94. The Nasdaq Composite Index dropped 2.1 percent. The Chicago Board Options Exchange Volatility Index jumped 14 percent, the most in three weeks. About 8.5 billion shares traded hands on U.S. exchanges, 21 percent above the three-month average.

     “We’ve had a number of negatives out there in the U.S., and China is a reminder that there aren’t many things to be bullish about going into this year,” said Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC in Greenwich, Connecticut. “The three catalysts to the bull market were economic recovery, earnings recovery and accommodative policy, and while the economy has gotten better, we’ve lost the other two.”

     Trading was halted in China after a 7 percent drop in the CSI 300 Index of large-capitalization companies listed in Shanghai and Shenzhen amid deteriorating manufacturing data. Chinese policy makers, who went to unprecedented lengths to prop up stock prices during a summer rout, are trying to prevent financial-market volatility from weighing on economy set to grow at its weakest annual pace since 1990.

     The S&P 500’s decline was its sixth-worst start to a year in data compiled by Bloomberg going back to 1927. The biggest rout to open a year was in 1932 when the index sank 6.9 percent, followed by a 2.8 percent slide during the dot-com demise in 2001. In those two instances, the index averaged a full-year loss of 14 percent, though the five worst starts had an average annual gain of 5.1 percent.

     S&P Dow Jones Indices data indicate the first day of trading has no predictive power for the rest of the year. The index ends the year in the same direction it takes on the opening day 50.6 percent of the time, the data show. The first month of the year has proved more telling — the gauge’s return in January determines its direction for the year 72.4 percent of the time.

     After scaling new peaks and enduring its worst selloff in four years, the main U.S. equity index ended 2015 0.7 percent lower. Investor sentiment wavered last year between optimism that the economy was strong enough to handle higher borrowing costs and concern that China’s slowdown will hurt global growth, which exacerbated weakness in commodity prices and raw-material stocks.

     The beginning of 2015 was also rocky, with the benchmark index dropping 2.7 percent in its first three sessions, followed by a two-day, 3 percent rally before eventually finishing January down 3.1 percent.

     Meanwhile, investment strategies premised on buying shares based on their momentum just posted the best year since 2007, which isn’t great news for bulls. Past instances when momentum stocks — defined as the ones showing the biggest gains in the last six to 12 months — won have occurred closer to the end of rallies than the beginning, signaling indiscriminate buying at a time when more traditional share drivers such as earnings growth are starting to wane.

     Escalating tensions between Saudi Arabia and Iran are also adding to worries Monday, according to Robert W. Baird & Co.’s Patrick Spencer. “Middle Eastern concern and the escalation compounded by further issues in China are all adding to short- term weakness,” said Spencer, equities vice chairman at Baird in London. “The outlook still looks reasonable and I would take any weakness to selectively buy, especially in the consumer and housing market recovery area.”

     Focus will turn toward a swath of economic reports this week, including data on factory activity, the monthly jobs report and minutes from the Federal Reserve’s meeting that ended with the first rate increase since 2006. A reading today showed manufacturing in the U.S. contracted in December at the fastest pace since 2009 as factories, hobbled by sluggish global growth, cut staff at the end of 2015.

     All of the S&P 500’s main groups dropped on Monday, with financial, health-care and consumer discretionary shares down at least 1.7 percent. Microsoft Corp., Google parent Alphabet Inc. and Facebook Inc. fell more than 1.2 percent. The Nasdaq Biotechnology Index sank 3.2 percent, the most in a month to weigh on health-care.

     JPMorgan Chase & Co. and Wells Fargo & Co. paced the drop in the financial group, down at least 2.6 percent as 83 of 87 members fell. McGraw Hill Financial Inc. and Huntington Bancshares Inc. fell the most, losing more than 3.2 percent. An index tracking bank stocks slumped 2.6 percent to the lowest since Oct. 21, and traded with volume 58 percent above their 30- day average, according to data compiled by Bloomberg.

     Several of 2015’s biggest winners and losers reversed roles in the first session of the new year. Netflix Inc. and Amazon.com Inc. dropped more than 3.8 percent, among the benchmark’s worst performers today after posting the strongest gains in 2015, up more than 117 percent. Chesapeake Energy Corp. and Consol Energy Inc. were the strongest gainers Monday, rising at least 8.4 percent, after leading declines last year.

     Energy companies in the S&P 500 fell 0.2 percent Monday, the smallest decline among the main industries after posting the biggest drop last year, down nearly 24 percent. Southwestern Energy Inc. and Range Resources Corp. added more than 4.6 percent. Overshadowing those gains, Chevron Corp. and Phillips 66 lost at least 1.2 percent.

     Among companies moving on corporate news, Baxalta Inc. jumped 5.5 percent to an all-time high. Bloomberg News reported that Shire Plc is in advanced talks to acquire the drugmaker for a deal of about $32 billion in cash and stock, excluding debt.

     Chipotle Mexican Grill Inc. dropped 6.5 percent to a more than two-year low after analysts predicted a tough 2016 for the restaurant chain. Chipotle’s reputation was battered in recent months by an outbreak of E. coli that afflicted at least 53 people in nine states. That was followed by a norovirus contagion at a Boston location that sickened more than 140 college students.
 

Have a wonderful evening everyone.

Be magnificent!

          “It is not in the stars to hold our destiny but in ourselves.” William Shakespeare

 

As ever,
 

Karen

 

          “Strength does not come from physical capacity. It comes from an indomitable will.” Mahatma Gandhi
 

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:

Wishing everyone a very Happy New Year!!
  

Market Closes for December 30^th, 2015

Market Index	Close	Change
Dow Jones	17603.87	-117.11   -0.66%
S&P 500	2063.36	-15.00   -0.72%
NASDAQ	5065.848	-42.090   -0.82%
TSX	13142.29	-103.46
		-0.78%

International Markets

Market Index	Close	Change
NIKKEI	19033.71	+51.48
		+0.27%
HANG SENG	21882.15	-117.47
		-0.53%
SENSEX	25960.03	-119.45
		-0.46%
FTSE 100	6274.05	-40.52
		-0.64%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.401	1.408
CND. 30 Year Bond	2.157	2.172
U.S.    10 Year Bond	2.2943	2.3050
U.S. 30 Year Bond	3.0335	3.0359

Currencies

BOC Close	Today	Previous
Canadian $	0.72039	0.72263
US $	1.38814	1.38383
Euro Rate 1 Euro=		Inverse
Canadian $	1.51667	0.65934
US $	1.09259	0.91526

Commodities

Gold	Close	Previous
London Gold Fix	1060.00	1070.10
Oil	Close	Previous
WTI Crude Future	36.60	37.87

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks slipped the most in two weeks, as commodities producers retreated with oil and gold tumbled to leave the benchmark index on track for its first annual loss in four years.

     Canadian Natural Resources Ltd. and Encana Corp. retreated at least 2.6 percent to lead energy producers lower. Crude futures tumbled 3.4 percent in New York, resuming a slide after a government report showed stockpiles unexpectedly rose. Raw- materials producers lost 1.3 percent as a group. Barrick Gold Corp. fell 2.3 percent and Goldcorp Inc. decreased 1.4 percent as gold futures in New York declined.

     The prospect of tighter monetary policy in the U.S. — traders have increased expectations the Federal Reserve will raise interest rates again in March — bolsters the dollar, reducing demand for precious metals. Energy and materials producers account for about one-third of the weighting in Canada’s equity index.

     The Standard & Poor’s/TSX Composite Index lost 0.8 percent, or 103.34 points, to 13,142.41 at 4 p.m. in Toronto, extending a monthly decline to 2.4 percent. Trading volume Tuesday was 55 percent lower than the 30-day average.

     Canadian equities joined a slide in global markets as the MSCI All-Country World Index extended its first annual decline since 2011. The S&P/TSX has lost 10 percent this year, ahead of only Singapore and Greece among the worst-performing developed markets in the world.

     Energy producers remain the worst-performing among 10 groups in the S&P/TSX this year, down 26 percent as slowing economic growth in China and Europe and a supply glut in crude battered commodities prices around the world. West Texas Intermediate is headed for its biggest two-year drop on record. Equity valuations in the S&P/TSX have declined 11 percent to about 20.3 times earnings from a 2015 high of 22.7 in April, according to data compiled by Bloomberg.

     Ballard Power Systems Inc. advanced 5.1 percent to a six- month high after the fuel cell company said its Protonex unit had sold an additional 400 battlefield power kits to the U.S. Army.

US

By Jeremy Herron and Anna-Louise Jackson

     (Bloomberg) — Global stocks extended their first annual slide in four years as oil resumed a retreat amid data showing an increase in American inventories. The dollar gained versus commodity currencies.

     U.S. stocks fell from a three-week high amid trading that was more than 40 percent below the 30-day average. European equities extended their worst December drop since 2002, while emerging-market equities sank as oil fell below $37 a barrel in New York on data showing an increase in American inventories. The Russian ruble and Brazil’s real led a retreat in currencies. The dollar strengthened.

     “There just aren’t enough people at the switch today,” said Matt Maley, an equity strategist at Miller Tabak & Co LLC in New York. “We had a nice rally yesterday, and oil is down, so maybe investors are thinking they’ll take some chips off the table.vYear-end is even thinner than it usually is because it’s coming before a long weekend.”

     Global equities are heading for their first decline in four years as a slowdown in the Chinese economy fueled the biggest retreat in raw materials prices in seven years at the same time the Federal Reserve ended its zero interest-rate policy. The Bloomberg Commodity Index is down 25 percent in 2015, while global bonds have returned 0.8 percent, according to the Bank of America Merrill Lynch Global Broad Market Index. The Standard & Poor’s 500 Index clung to a 0.2 percent annual gain, while emerging-market equities have plunged 17 percent.

     The S&P 500 fell 0.7 percent at 4 p.m. in New York after rallying 1.1 percent Tuesday. The index extended losses in afternoon trading, with declines halting at the gauge’s average price for the past 200 days. The benchmark has lost 0.8 percent in December amid the Fed’s first rate increase in nearly a decade.

     “There are so few players out there, so few books open and so few new positions being taken, so anything could happen in an illiquid environment,” said Andrew Brenner, head of international fixed income for National Alliance Capital Markets in New York. “I don’t see us giving back yesterday’s gains, we might give back some, but I tend to think the market will be higher today.”

     If the S&P 500 closes 2015 higher, it will be its fourth consecutive annual gain, while a loss would make it the worst year since 2008. The index has risen as much as 3.5 percent in the year and was down 9.3 percent at its low in August. It closed yesterday 2.5 percent away from an all-time high set in May.

     The Stoxx Europe 600 Index lost 0.5 percent, after climbing 1.4 percent on Tuesday. The number of shares changing hands was about half the 30-day average. Markets will shut on Friday for New Year. Some including Germany, Switzerland and Italy, will also close Thursday for New Year’s Eve, while others will have shorter trading hours.

     Declines for European equities left them 5 percent lower for the month. While stocks recouped some losses in the final weeks of the year, that hasn’t been enough to reverse a slide earlier this month stoked partly by disappointing European Central Bank stimulus measures. Still, the Stoxx 600 is heading for its fourth straight annual advance.

     Oil fell after industry data showed an unexpected increase in crude inventories last week. West Texas Intermediate dropped 3.4 percent to settle at $36.60 a barrel. The contract is down 31 percent this year. Brent slid 2.9 percent to $36.68. 

     U.S. Energy Information Administration data showed an unexpected build in U.S. crude stockpiles, adding to the glut of supplies that’s pushed prices down below $40 a barrel.

     Natural gas futures retreated for the first time in five days after U.S. weather forecasts for January predicted milder weather, bolstering concern that a supply glut for the heating fuel will persist. U.S. natural gas fell after reaching a six- week high Tuesday, as February futures dropped 6.6 percent to settle at $2.214 per million British thermal units.

     U.S. 10-year Treasuries were little changed, with yields at 2.30 percent. The rate on the notes jumped eight basis points in the previous session. Demand for government securities is waning as the Federal Reserve begins raising interest rates.

     The Treasury’s final three auctions of coupon-bearing notes this year drew some of the lowest investor demand since the financial crisis with the Federal Reserve on course to raise interest rates several times next year, potentially lowering the value of the debt.

Puerto Rico will default on about $37 million in bond payments due Jan. 1 and divert revenue to make others, escalating a conflict with investors as Governor Alejandro Garcia Padilla seeks to restructure a $70 billion debt burden.

     The MSCI Emerging Markets Index fell 1.1 percent for a third day of losses that brought its retreat this year to 17 percent, the most since 2011. All 10 industry groups retreated Wednesday, with energy shares leading declines.

     Sentiment toward emerging-market assets turned more bearish as oil slumped and concern lingered that the slowdown in China will affect global growth. Chinese shares in Hong Kong extended the biggest sell-off in Asia this year on concern the nation’s deepening economic slowdown will sap corporate earnings. After China’s suspension of cross-border yuan operations, the currency’s exchange rates at home and abroad diverged by the most in three months.

     Russia’s ruble and the South African rand weakened at least 1.6 percent versus the dollar, leading declines in emerging currencies, which slid for a third day. A Bloomberg gauge of 20 emerging currencies slid 0.6 percent for a third day of losses. Brazil’s real added to a fifth annual drop as oil prices tumbled and an increase in the minimum wage fueled concern that the country’s fiscal situation will worsen.

Have a wonderful evening everyone.

Be magnificent!
 

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

 

As ever,
 

Karen, Leyla, & Bonnie

 

“Do not go where the path may lead, go instead where there is no path and leave a trail.”

Ralph Waldo Emerson

 

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:

PHOTOS OF THE DAY

Jockey David Noonan falls from Steady Eddie at the first fence during a hurdle race at Doncaster Racecourse in Doncaster England on Friday. Mike Egerton/PA/AP

Canada’s Prime Minister Justin Trudeau poses with airport staff as they await Syrian refugees to arrive at the Toronto Pearson International Airport in Mississauga, Ontario, Thursday. After months of promises and weeks of preparation, the first planeload of Syrian refugees was headed to Canada on Thursday, aboard a military plane to be met at Toronto’s airport by Trudeau. Mark Blinch/Reuters

Market Closes for December 29^th, 2015

Market Index	Close	Change
Dow Jones	17720.98	+192.71   +1.10%
S&P 500	2078.36	+21.86   +1.06%
NASDAQ	5107.938	+66.952   +1.33%
TSX	13245.75	-64.05
		-0.48%

International Markets

Market Index	Close	Change
NIKKEI	18982.23	+108.88
		+0.58%
HANG SENG	21999.62	+80.00
		+0.36%
SENSEX	26079.48	+45.35
		+0.17%
FTSE 100	6314.57	+59.93
		+0.96%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.408	1.414
CND. 30 Year Bond	2.172	2.166
U.S.    10 Year Bond	2.3050	2.2587
U.S. 30 Year Bond	3.0359	2.9888

Currencies

BOC Close	Today	Previous
Canadian $	0.72263	0.72204
US $	1.38383	1.38497
Euro Rate 1 Euro=		Inverse
Canadian $	1.51235	0.66122
US $	1.09276	0.91511

Commodities

Gold	Close	Previous
London Gold Fix	1070.10	1068.25
Oil	Close	Previous
WTI Crude Future	37.87	36.90

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, snapping a five-day rally as the market re-opened following the Christmas holiday, as Valeant Pharmaceuticals International Inc. slumped after the embattled drugmaker’s chief executive took a medical leave of absence.

     Valeant, briefly the largest company in Canada by market capitalization this year, sank 11 percent for the biggest decline in seven weeks. Chief Executive Officer Michael Pearson, who was hospitalized with a severe case of pneumonia last week, will be replaced by a team of executives while he recovers from his illness, the company said Monday.

     The Standard & Poor’s/TSX Composite Index lost 0.5 percent, or 64.05 points, to 13,245.75 at 4 p.m. in Toronto, halting a five-day rally that added 2.3 percent to the gauge. The Canadian market was closed Monday for the Boxing Day holiday. Trading volume Tuesday was 45 percent lower than the 30-day average.

     Energy producers slipped 0.9 percent as crude in New York recovered after a 3.4 percent slide Monday. The industry remains the worst-performing among 10 in the S&P/TSX this year, down 25 percent as slowing economic growth in China and Europe and a supply glut in crude battered commodities prices around the world.

     Equity valuations in the S&P/TSX have declined 9.7 percent to about 20.5 times earnings from a 2015 high of 22.7 on April 15, according to data compiled by Bloomberg. The S&P/TSX is among the worst-performing developed equity markets this year, ahead of only Singapore and Greece. The benchmark is down 1.7 percent for December and 9.5 percent for the year, headed for the worst annual retreat since 2011.

     BlackBerry Ltd. added 2.4 percent, to a more than nine- month high, after ProPakistani reported Monday the smartphone maker may reach a deal to stay in Pakistan, according to unnamed sources. BlackBerry said Nov. 30 it will shutter its operations in the country to avoid allowing authorities there to monitor its main business enterprise server and e-mail messages.

     Uni-Select Inc., the second-best performing stock in the S&P/TSX this year with a 130 percent advance, rose to a record after the automotive replacement parts maker’s FinishMaster paint unit agreed to buy ColorMaster Automotive Paint assets Monday for an undisclosed amount.

     Laval, Quebec-based Valeant has plunged 60 percent from its August peak amid intense scrutiny from investors and lawmakers over its pricing practices, use of mail-order pharmacies and acquisitions for growth.

US

By Jeremy Herron and Anna-Louise Jackson

     (Bloomberg) — U.S. stocks advanced to a three-week high, helping trim the first annual loss for global equities since 2011, while Treasuries declined as oil led a rally among commodities.

     The Standard & Poor’s 500 Index halted a two-day slide as all 10 main groups climbed, and the MSCI All-Country World Index cut its loss for the year to 2.9 percent. European stocks trimmed their worst December drop since 2002. Oil gained above $37 a barrel amid forecasts for falling U.S. stockpiles. Yields on 10-year Treasury notes rose eight basis points to 2.31 percent, while a gauge of the dollar advanced.

     “This remains a Teflon market, it has been all year,” said Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles. “There have been plenty of negative headwinds that should’ve had the market significantly lower than it is now. And to be basically unchanged for the year is probably a net win-win for those that have a bullish mentality and bullish expectations for 2016.”

     Global equities are on track for the worst year since 2011, as the global oil glut and China’s economic weakness fanned the biggest annual drop in commodity prices in seven years. The rout in energy and resources is undermining corporate earnings and hindering central bank attempts to ignite inflation. The Bloomberg Commodity Index is down about 25 percent in 2015, while global bonds lost 2.4 percent, according to a Bank of America Merrill Lynch index. The S&P 500’s rally Tuesday left it higher by 1 percent this year.

     The S&P 500 rose 1.1 percent at 4 p.m. in New York, as technology shares surged 1.4 percent. Stocks are defying the historical trend of gains in the final month of the year, with the benchmark index down by 0.3 percent, after a series of sharp rallies and selloffs.

     Amazon.com Inc. paced gains among retailers for a second day, rising 2.9 percent to a record in post-holiday trading that was 37 percent below the 30-day average for this time of day. The so-called “FANG” stocks — Facebook Inc., Amazon, Netflix Inc. and Google’s parent Alphabet Inc. — rose at least 1.2 percent today.

     The Stoxx Europe 600 Index added 1.4 percent. The European benchmark is down 4.1 percent this month amid a disappointing increase in European Central Bank stimulus, along with the commodity rout. The index lost a big part of its annual advance amid concern over global growth, just as the Federal Reserve raised its interest rates for the first time in almost a decade.

     After surging as much as 21 percent to a record in April, the Stoxx 600 slid 12 percent through yesterday. It’s still up 7.9 percent this year, poised for a fourth annual advance.

     West Texas Intermediate crude advanced 2.9 percent to settle at $37.87 a barrel while Brent traded 3.2 percent higher to end at $37.79.

     U.S. crude inventories probably fell for a second week, according to a Bloomberg survey before government data Wednesday. Saudi Arabia’s 2016 spending plan assumes a Brent price of $37 a barrel, according to John Sfakianakis, a Riyadh- based economist at Ashmore Group Plc and a former government adviser.

     Gas futures headed for the first monthly gain since June, wiping out December losses of as much as 25 percent, after overnight computer models predicted colder weather would boost demand and may help ease a supply glut. Natural gas advanced 5.1 percent in the U.S. to $2.341 per million British thermal units, adding to a surge of 10 percent on Monday.

     Copper futures rose the most in more than a week as Chinese refiners agreed to cut sales of the metal that’s trading near a six-year low.

     The Bloomberg Dollar Spot Index gained 0.1 percent. The gauge that tracks the U.S. currency against 10 of its most- traded peers has retreated about 0.1 percent since Central bank increased the interest rate earlier in December.

     The euro dropped to $1.0938. The joint currency will fall about 4 percent against the dollar in 2016, according to the consensus of analyst forecasts compiled by Bloomberg, though two of the biggest participants in the market — Barclays Plc and Bank of America Corp.’s Merrill Lynch unit — expect it to drop through parity with the greenback.

     Emerging-market equities fell, extending the biggest annual decline in four years, as persistent weakness in commodities weighs on the global growth outlook. The MSCI Emerging-Markets Index dropped for a second day, with health care and utility stocks leading declines. Energy stocks rose for the first time in three days as oil rebounded back above $37 a barrel, outweighing concern that global growth is slowing.

     A gauge tracking 20 currencies in developing nations retreated 0.1 percent.
 

Have a wonderful evening everyone.

Be magnificent!
 

“Coming together is a beginning;

keeping together is progress;

working together is success.”

Henry Ford

 

As ever,
 

Karen

“A smile is the universal welcome.” Max Eastman

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:

Wishing everyone a very Merry Christmas!

Market Closes for December 23^rd, 2015

Market Index	Close	Change
Dow Jones	17602.61	+185.34   +1.06%
S&P 500	2064.29	+25.32   +1.24%
NASDAQ	5045.934	+44.823   +0.90%
TSX	13284.91	+202.05
		+1.54%

International Markets

Market Index	Close	Change
NIKKEI	18886.70	-29.32
		-0.16%
HANG SENG	22040.59	+210.57
		+0.96%
SENSEX	25850.30	+259.65
		+1.01%
FTSE 100	6420.98	+157.88
		+2.60%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.414	1.418
CND. 30 Year Bond	2.166	2.140
U.S.    10 Year Bond	2.2587	2.2357
U.S. 30 Year Bond	2.9888	2.9556

Currencies

BOC Close	Today	Previous
Canadian $	0.72204	0.71857
US $	1.38497	1.39166
Euro Rate 1 Euro=		Inverse
Canadian $	1.51083	0.66189
US $	1.09088	0.91669

Commodities

Gold	Close	Previous
London Gold Fix	1068.25	1074.90
Oil	Close	Previous
WTI Crude Future	36.90	35.19

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rallied a fourth day, the longest streak since October, as oil climbed to a two-week high and industrial metals advanced.

     The Standard & Poor’s/TSX Composite Index rose 1.5 percent, or 202.05 points, to 13,284.91 at 4 p.m. in Toronto, the highest close since Dec. 4. The Canadian benchmark is still down 1.4 percent for December and 9.2 percent for the year.

     Data Wednesday showed Canada’s gross domestic product unexpectedly stalled in October, bolstering speculation that the Bank of Canada will cut its 0.5 percent interest rate.

     “Another interest rate cut is likely early next year, probably in April, though possibly sooner if oil prices fall any further,” said David Madani, economist at Capital Economics, in a report to clients. “We fear that the economy may never have escaped the recession that began earlier this year.”

     Crew Energy Inc. and Crescent Point Energy Corp. jumped at least 9.8 percent as energy producers led gains. West Texas Intermediate futures rose 3.8 percent in New York after a report showed U.S. stockpiles fell 5.88 million barrels last week, easing a supply glut. WTI traded at a premium to Brent for the first time since January yesterday.

     Energy remains the worst-performing industry among 10 in the S&P/TSX this year, down more than 23 percent and headed for the steepest annual decline since 2008 as slowing economic growth in China and Europe and a supply glut in crude battered commodities prices around the world.

     Teck Resources Ltd., a producer of steelmaking coal, surged 9.3 percent and First Quantum Minerals Ltd. added 17 percent to lead an advance in raw-materials producers.

     Wi-Lan Inc. surged 12 percent, the most in more than six months, after the Canadian technology licensor’s Copy Protection unit entered into a patent license agreement with Netflix Inc. Terms of the agreement were not disclosed. Shares of Wi-Lan have slumped 48 percent this year, on pace for the worst annual slide in 10 years.

US

By Dani Burger

     (Bloomberg) — The Standard & Poor’s 500 Index rose for a third day, erasing losses for the year, as energy shares surged the most in almost three months and consumer-spending data boosted optimism on the economy.

     Commodity companies surged for a second day as crude climbed to a two-week high and industrial metals gained on optimism the Chinese and American economies will spark demand for resources. Chevron Corp. rallied 3.9 percent and copper miner Freeport-McMoRan Inc. jumped 16 percent for its biggest gain since in August. Celgene Corp. rose 9.8 percent after settling a patent dispute over its top-selling drug. Micron Technology Inc. lost 2.2 percent after its quarterly sales missed estimates.

     The Standard & Poor’s 500 Index increased 1.2 percent to 2,064.29 at 4 p.m. in New York, as a three-day rally of 2.9 percent erased its decline for the year. The Dow Jones Industrial Average climbed 184.93 points, or 1.1 percent, to 17,602.20. The Nasdaq Composite Index added 0.9 percent. Trading in S&P 500 shares was 16 percent lower than the 30-day average. U.S. exchanges will close early on Thursday for the Christmas holiday and reopen on Dec. 28.

     “The gains in oil and materials are certainly helping the market dig itself out of the hole,” said Peter Jankovskis, co- chief investment officer of Lisle, Illinois-based OakBrook Investments LLC. “Consumer spending looks good, and it bodes well for the economy.”

     Equities extended a rally in this holiday shortened week, recovering from a slide to a two-month low as data showing consumers’ willingness to spend buoyed optimism toward the outlook for growth. Investors were loading up on some of the year’s biggest losers in search of bargains among energy and raw-materials shares.

     A report today showed an increase in consumer purchases in November was accompanied by rising wages and scant inflation, indicating the biggest part of the U.S. economy will continue to underpin growth. Separate data showed orders for U.S. capital goods dropped in November for the first time in three months, showing businesses began tempering new investment after a third- quarter surge.

     The consumer spending data is the latest evidence that the economy is sturdy enough to weather tighter monetary policy from the Federal Reserve. Purchases climbed by the most in three months in November, which follows a report yesterday showing consumer spending bolstered the economy in the third quarter. Other gauges today showed consumer confidence rose to the highest since July, while new homes sold at a slower pace than projected in November.

     Investors have wrestled with signals that are often at odds as they assess prospects for the global economy. Optimism on the pace of U.S. growth has tangled with concern that a slowdown overseas, particularly in China, will spread. Fed officials last week signaled faith that the economy is performing well, while emphasizing they’re in no hurry to further boost interest rates.

     The S&P 500 has rebounded more than 10 percent from the bottom of a summer selloff that was sparked by worries over weakness in China. The benchmark historically rises in December, but the so-called Santa rally is under pressure this year. The gauge is down 0.8 percent this month, after losing as much as 3.4 percent.

     The Chicago Board Options Exchange Volatility Index fell 7.5 percent Wednesday to 15.36, a two-week low. The measure of market turbulence known as the VIX is on track to wipe out its gain this month after surging as much as 51 percent on a closing basis.

     A Goldman Sachs Group Inc. index of 50 stocks with the highest short interest jumped 2.6 percent to the highest level in more than two weeks.

     Energy companies jumped 4.2 percent Wednesday to top the S&P 500’s 10 main industries, as the group headed toward its strongest day since Oct. 2. West Texas Intermediate crude futures rose past $37 a barrel after a weekly report showed U.S. crude inventories declined, easing a supply glut.

     Energy producers are still down more than 7 percent in December, on track for their worst month since July. Williams Cos. and Southwestern Energy Co. gained more than 12 percent today.

     “There’s a fair amount of money wanting to buy into the energy sector because prices are so beaten up,” said Bob Phillips, co-founder and managing principal at Indianapolis- based Spectrum Management Group Inc. “Any indication that oil prices are ticking higher gives reason for that speculative money to start taking positions, and that can push the index higher.”

     Freeport-McMoRan rallied the most in four months to lead raw-materials shares. The copper producer is the fourth-weakest performer in the S&P 500 this year, losing 68 percent. Alcoa Inc. climbed 6.6 percent toward a more than two-month high, trimming its 2015 drop to 35 percent.

     Celgene led gains among health-care companies and the Nasdaq Biotechnology Index, which added 9.8 percent. The company said it settled a patent dispute over its blood cancer treatment Revlimid with Natco Pharma Ltd., sending the shares toward their biggest climb in six years. 

     Beaten-down Tenet Healthcare Corp., which has lost 36 percent this year, rose 7.5 percent and is up 19 percent this week as more people than expected signed up for Obamacare coverage next year.

     The Dow Jones Transportation Average gained 1.1 percent, taking its three-day climb to 3.3 percent. Barge operator Kirby Corp. added 4.1 percent, while Ryder Systems Inc. advanced 3.5 percent. Both companies are down more than 30 percent in 2015, while the transportation average has lost about 17 percent.

     Among other companies moving on corporate news, Bed Bath & Beyond Inc. fell 4.6 percent after saying third-quarter profit and comparable sales will be less than forecast. Nike Inc. slipped 2.3 percent, even as its quarterly earnings exceeded estimates. Executives said on a conference call that the company’s gross margin may narrow in the current quarter as it works to clear out inventory in North America to make way for new products.

 

Have a wonderful holiday everyone!

Be magnificent!
 

 “Christmas is the spirit of giving without a thought of getting. It is happiness because we see joy in people. It is forgetting self and finding time for others. It is discarding the meaningless and stressing the true values.” Thomas S. Monson

 

 

As ever,
 

Karen, Leyla, & Bonnie 

 

 

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:

PHOTOS OF THE DAY

A competitor takes part in the Christmas Really Wild Mud Run on a 4.6 miles course across undulating farm land at Celtic Camping, St David’s, Pembrokeshire, Wales. Rebecca Naden/AP

The Lower Manhattan skyline is seen as runner trots at Pier A Park, Saturday, in Hoboken, N.J. Julio Cortez/AP

Market Closes for December 22^nd, 2015

Market Index	Close	Change
Dow Jones	17417.27	+165.65   +0.96%
S&P 500	2038.97	+17.82   +0.88%
NASDAQ	5001.110	+32.188   +0.65%
TSX	13082.86	+48.48
		+0.37%

International Markets

Market Index	Close	Change
NIKKEI	18886.70	-29.32
		-0.16%
HANG SENG	21830.02	+38.34
		+0.18%
SENSEX	25590.65	-145.25
		-0.56%
FTSE 100	6083.10	+48.26
		+0.80%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.418	1.383
CND. 30 Year Bond	2.140	2.109
U.S.    10 Year Bond	2.2357	2.1917
U.S. 30 Year Bond	2.9556	2.9103

Currencies

BOC Close	Today	Previous
Canadian $	0.71857	0.71627
US $	1.39166	1.39611
Euro Rate 1 Euro=		Inverse
Canadian $	1.52405	0.65615
US $	1.09513	0.91313

Commodities

Gold	Close	Previous
London Gold Fix	1074.90	1078.75
Oil	Close	Previous
WTI Crude Future	35.19	34.74

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose the most in a week as energy producers advanced with the price of crude and Valeant Pharmaceuticals International Inc. increased a second day.

     Energy producers rose 0.6 percent as a group, as pipeline operators Enbridge Inc. and TransCanada Corp. increased at least 1.3 percent. Oil futures advanced in New York for the first time in five days, halting a decline near the lowest price in more than six years.

     Valeant rallied 4 percent amid a deal with Walgreens Boots Alliance Inc. to repurchase drugs from the U.S. pharmacy operator and sell them on consignment, the Wall Street Journal reported. The stock, briefly the most valuable in Canada earlier this year before plunging amid scrutiny over its pricing practices, has soared 31 percent in December headed for the biggest monthly gain since 1999.

     The Standard & Poor’s/TSX Composite Index rose 0.4 percent, or 49.78 points, to 13,084.16 at 4 p.m. in Toronto, the biggest gain since Dec. 16. The Canadian benchmark equity gauge has lost 11 percent this year, the third-worst performing developed market in the world ahead of only Singapore and Greece.

     Bank of Montreal and Toronto-Dominion Bank lost at least 0.4 percent. Data on Tuesday showed the U.S. economy grew at a revised 2 percent annualized rate in the third quarter, ahead of market expectations for a 1.9 percent increase, according to the median forecast of economists surveyed by Bloomberg. 

     The downward revision was “relatively minimal” and is enough of a sign of the economic recovery for the Federal Reserve to continue increasing interest rates into 2016, Paul Ferley, assistant chief economist at RBC Capital Markets, wrote in a note to clients.

     Raw-materials and energy producers have plunged at least 21 percent this year. Weekly U.S. inventory and production data Wednesday is expected to show inventories rose by 1.2 million barrels last week, according to a Bloomberg survey.

     Dominion Diamond Corp. surged 22 percent, the most in more than six years, after the Canadian mining company hired financial advisers to explore a sale, according to people familiar with the matter. Hedge fund K2 & Associates Investment Management sent a letter to the company’s board Monday requesting a meeting to discuss changes, including a strategic review.

US

By Lu Wang

     (Bloomberg) — U.S. stocks rose for a second day as a rally in commodity shares ignited broader gains, while data showed consumer spending bolstered the economy amid slowing growth overseas.

     The two most beaten-down industries this year — energy and raw-materials — led most of Tuesday’s advance, keeping alive prospects for an anticipated year-end rally. Caterpillar Inc.

surged to its best gain in two months, while Wal-Mart Stores Inc. gained 1.7 percent as data showed consumers continued to spend. Chipotle Mexican Grill Inc. fell on an investigation into its links to a new spate of illnesses in three additional states.

     The Standard & Poor’s 500 Index climbed 0.9 percent to 2,038.97 at 4 p.m. in New York, as the gauge added to its rebound from a two-month low. The Dow Jones Industrial Average rose 165.65 points, or 1 percent, to 17,417.27, while the Nasdaq Composite Index advanced 0.7 percent. About 6.4 billion shares traded hands on U.S. exchanges, 12 percent below the three-month average.

     “Most of the major data is behind us for this year, you’re going to see volumes continue to decline,” said Michael Arone, the Boston-based chief investment strategist at State Street Global Advisors’ U.S. Intermediary Business. The firm oversees $2.4 trillion. GDP data “continues to tell us the same thing, that is the consumer is in reasonable shape and exports are continuing to struggle.’’

     A report today showed the economy expanded at a revised 2 percent annualized rate in the third quarter, buoyed by consumer spending. Meanwhile, businesses struggled with weaker overseas growth and a strong dollar, which have been a drag on net exports. Sustained growth in the U.S. combined with weakening in other parts of the globe, including in China, could widen the gap between exports and imports in the quarters ahead.

     Investors have wavered between optimism on the U.S. economy and concern that slower growth overseas will spread. Federal Reserve policy makers last week signaled faith that the economy is performing well, while emphasizing they’re in no hurry to further boost interest rates. Investors were initially soothed by that message, though oil’s collapse below levels last seen during the 2008 global financial crisis weighed on sentiment.

     The S&P 500 historically rises in December, with the final two weeks delivering an average gain of 1.7 percent. The so- called Santa rally is under pressure this year, with the benchmark down 2 percent in December and in the midst of its worst final month since 2002. After rebounding as much as 13 percent from its summer low through early November, the S&P 500 has retreated 3.4 percent, putting it on track for its biggest annual drop since the 2008 financial crisis.

     In addition to the GDP numbers, data this week on new-home sales, durable-goods orders and personal spending will offer further clues on the health of the economy, after the Fed’s first rate increase in almost a decade. Officials at the central bank said any further rate hikes will be gradual and depend on the path of the recovery.

     A report today showed sales of previously owned homes fell in November to the lowest level since April of last year as a change in industry rules lengthened the amount of time it took buyers to close on a deal.

     The Chicago Board Options Exchange Volatility Index fell 11 percent Tuesday to 16.60, a two-week low. The measure of market turbulence known as the VIX further pared its gain this month to about 3 percent, after surging as much as 51 percent.

     All of the S&P 500’s 10 main industries advanced, with energy, consumer staples, industrial and raw-material companies rising more than 1.2 percent. Energy remains on pace for its worst monthly decline in more than three years. Anadarko Petroleum Corp. and Diamond Offshore Drilling Inc. added more than 4.3 percent. West Texas Intermediate crude futures rose 0.9 percent to $36.14 a barrel.

     Raw-material shares gained as fertilizer maker Mosaic Co. and steel company Nucor Corp. rose at least 3.5 percent. The group rallied even as most commodities retreated, with nickel leading a drop in industrial metals as stockpiles expanded to the highest in more than two months amid signs of slowing demand.

     Caterpillar’s strongest gain since Oct. 5 led the benchmark’s industrial group. The heavy-machinery maker is one of the Dow’s worst performers this year, down 25 percent as the slump in commodities has weighed on mining-equipment manufacturers. United Rentals Inc., among the S&P 500 industrials’ weakest in 2015, climbed 4.3 percent Tuesday to trim its drop this year to 29 percent.

     The story was similar in consumer staples, where two companies battered this year were the strongest gainers today. Whole Foods Market Inc., which has struggled amid intensified competition, jumped 5.5 percent. The grocery store chain is down 31 percent year to date, headed toward its worst since 2008. Archer-Daniels-Midland Co. added 3.1 percent to pare its 2015 drop to 30 percent.

     Chipotle fell 5.3 percent, down for the seventh time in eight sessions as it reels from recent outbreaks of E. coli and norovirus at its restaurants. The shares are down almost 15 percent this month, on track for the worst in three years and have tumbled 35 percent since reaching an all-time high on Aug. 5.

     Among other companies moving on corporate news, NetApp Inc. fell 5 percent after agreeing to buy SolidFire Inc. for $870 million in cash to boost its presence in the growing market for systems that can retrieve and store vast amounts of data at rapid speeds.

 

Have a wonderful evening everyone.

Be magnificent!

 “Patience is the best remedy for every trouble”. Plautus

 

 

As ever,
 

Karen
 

“Spread love everywhere you go. Let no one ever come to you without leaving happier.” Mother Teresa

 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

PHOTOS OF THE DAY

Thousands of runners dressed in Santa Claus outfits compete in the annual Carrera de Papa Noel (Santa Claus Run), in Madrid, Spain, Saturday. Javier Barbancho/Reuters

Re-enactors Amber and Maya Miller make gingerbread cookies at Bennett Place in Durham, N.C., Saturday. Christine T. Nguyen/The Herald-Sun/AP

Market Closes for December 21^st, 2015

Market Index	Close	Change
Dow Jones	17251.62	+123.07   +0.72%
S&P 500	2021.15	+15.60   +0.78%
NASDAQ	4968.922	+45.840   +0.93%
TSX	13034.38	+10.08
		+0.08%

International Markets

Market Index	Close	Change
NIKKEI	18916.02	-70.78
		-0.37%
HANG SENG	21791.68	+36.12
		+0.17%
SENSEX	25735.90	+216.68
		+0.85%
FTSE 100	6034.84	-17.58
		-0.29%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.383	1.400
CND. 30 Year Bond	2.109	2.122
U.S.    10 Year Bond	2.1917	2.2040
U.S. 30 Year Bond	2.9103	2.9220

Currencies

BOC Close	Today	Previous
Canadian $	0.71627	0.71659
US $	1.39611	1.39550
Euro Rate 1 Euro=		Inverse
Canadian $	1.52343	0.65641
US $	1.09119	0.91643

Commodities

Gold	Close	Previous
London Gold Fix	1078.75	1062.50
Oil	Close	Previous
WTI Crude Future	34.74	34.73

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks were little changed Monday as an advance in materials shares was offset by losses in energy and utilities companies.

     The Standard & Poor’s/TSX Composite Index ticked up to 13,034.38 at 4 p.m. in Toronto. The gauge erased an early gain of 0.9 percent and traded lower for most of the afternoon before rebounding into the close. The index has advanced 2.7 percent since slumping on Dec. 14 to its lowest level since October 2013. Trading Monday was 13 percent below the average of the past 30 days.

     Canada’s equity benchmark — 30 percent of which is commodity producers — has had the third-worst returns year to date of all developed nations, only faring better than Greece and Singapore. Energy producers and miners diverged Monday.

     Raw-materials producers jumped 0.7 percent as the U.S. dollar, the currency used around the world to buy and sell most commodities, weakened for the second straight session against a basket of its peers. China, the world’s biggest consumer of resources, signaled it may step up stimulus.

     First Majestic Silver Corp. and Hudbay Minerals Inc. jumped at least 4.7 percent as First Quantum Minerals Ltd. and Teck Resources Ltd. each climbed at least 3.7 percent.

     Energy producers in the S&P/TSX slumped 0.9 percent as crude oil slid for a fourth straight day. Gran Tierra Energy Inc. and Penn West Petroleum Ltd. lost at least 3.7 percent as brent crude slumped to the lowest price since mid-2004 amid speculation suppliers around the world will exacerbate a glut in oil.

     Utilities shares also weakened, losing 1.2 percent as Brookfield Renewable Energy Partners LP lost 4.2 percent after climbing 12 percent in the previous four sessions. Atco Ltd shares dropped 1.8 percent.

     Shares of consumer staples companies climbed 0.7 percent on the back of gains in Jean Coutu Group Inc. and Cott Corp., with gains of at least 1.9 percent. Saputo Inc., a manufacturer of dairy and grocery products, jumped 1.5 percent.

US

By Dani Burger

     (Bloomberg) — U.S. stocks surged in the final minutes of trading, rebounding after the biggest two-day rout in three months as financial and technology companies paced a climb from equities’ lowest levels since October.

     Apple Inc. rose 1.2 percent and JPMorgan Chase & Co. advanced 1.8 percent. Avago Technologies Ltd. added 4 percent to lead chipmakers. Tenet Healthcare Corp. gained 12 percent after encouraging government data on sign-ups for Obamacare coverage for next year. Raw-materials companies increased amid signs that China may add to its stimulus efforts. Walt Disney Co. fell for a third day, losing 1.1 percent.

     The Standard & Poor’s 500 Index gained 0.8 percent to 2,021.15 at 4 p.m. in New York, as the gauge rebounded from a 3.3 percent two-day drop. The Dow Jones Industrial Average added 123.07 points, or 0.7 percent, to 17,251.62. The Nasdaq Composite Index increased 0.9 percent. About 6.8 billion shares changed hands on U.S. exchanges Monday, 6.8 percent below the three-month average.

     “After the declines of last week, there’s a little more value to be created,” said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Corp., which oversees $946 billion. “There’s also chatter about stimulus out of China. It’s incremental, but it’s a signal of their determination to prevent further slowdown. Seasonally speaking, stocks tend to get a bit better into year-end.”

     Equities were bolstered earlier after China’s leaders signaled Monday they will take further steps to support growth. The government said monetary policy must be more “flexible” and fiscal policy more “forceful” to combat a slowdown in the world’s second-largest economy.

     Investors have wavered between optimism on the U.S. economy and concern that a slowdown on China will spread. Worries about weakness in the world’s second-largest economy were stoked in August by a surprise currency devaluation, triggering the S&P 500’s first correction in four years. The gauge rebounded as much as 13 percent from a summer low through early November, before giving up 4.9 percent through last week.

     The equity benchmark has fallen 2.9 percent in December, bucking the historical seasonal trend of gains, and is on track for its biggest annual drop since the 2008 financial crisis. That puts even more pressure on the so-called Santa Claus rally to save the year. Historically, the final two-weeks of December deliver a gain of 1.7 percent.

     Investors initially reacted positively to the message from Fed policy makers who signaled last week a belief that the U.S. economy is performing well while emphasizing no rush to further boost interest rates. Turbulence in commodities and the implications for global growth quickly drew renewed attention as oil collapsed below levels last seen during the 2008 global financial crisis on signs the market’s oversupply will worsen.

     Federal Reserve Bank of Atlanta President Dennis Lockhart said today the central bank’s commitment to a “gradual” tightening suggests rates could be raised at every other meeting of the policy-setting Federal Open Market Committee, though the actual pace will depend on incoming economic data. Reports later this week on home sales, durable-goods orders and personal income will provide further cues.

     The Chicago Board Options Exchange Volatility Index fell 9.7 percent Monday to 18.70. The measure of market turbulence known as the VIX remains on track for its biggest monthly gain since August, up 16 percent.

     “We’ve seen a lot of stimulus over the last year and the market is hoping to see that pay off, provide a spark to the economy,” said Joseph Betlej, who helps oversee $33 billion as vice president of Advantus Capital Management. “We’re at a point in the business cycle where macro events tend to get magnified, either positively or negatively. Look for a market with continued volatility.”

     All of the S&P 500’s 10 main industries rose today, with technology and financial companies pacing gains. Phone companies were the top performers, up 1.1 percent. Energy shares lagged as Brent crude oil slid 1.5 percent amid speculation suppliers from the Middle East to the U.S. will exacerbate a glut as they fight for market share.

     First Solar Inc. and Micron Technology Inc. added at least 2.8 percent as semiconductors had their best day in two weeks. Juniper Networks Inc. sank 5 percent to cap tech gains, falling for a third day after the maker of computer-networking equipment warned customers that it discovered unauthorized code in software that runs on some of its devices, leaving them vulnerable to “complete compromise” by remote cyber-attackers.

     Hospital operators Tenet Healthcare and HCA Holdings Inc. added more than 4.8 percent, the most since June. The government said that about 6 million people have signed up for Obamacare coverage for next year on U.S.-run markets, a good sign after concerns that the industry’s benefit from the program was shrinking.

     Cruise ship operators Royal Caribbean Cruises Ltd. and Carnival Corp. advanced more than than 2.9 percent, rising for the fifth time in six sessions. Carnival said Friday advance bookings for the first three quarters of 2016 are well ahead of the previous year at slightly higher prices.

     JPMorgan Chase rose 1.8 percent to lead the Dow, while also rising to the top of banks in the S&P 500. Comerica Inc. and KeyCorp added at least 1.3 percent. Asset manager Invesco Ltd. rallied 3 percent to lead the broader financial group.

     Energy companies wiped out declines late in the day as natural-gas producers rose along with the commodity. Gas futures capped the biggest one-day gain in seven weeks as forecasts showed mild weather fading in the U.S. Midwest. Southwestern Energy Co. and Consol Energy Inc. surged more than 5.9 percent. Oneok Inc. soared 15 percent, the most since July 2013, after its 2016 financial outlook included its dividend remaining flat.

     Disney was the biggest drags on the S&P 500, losing 1.1 percent despite Chief Executive Bob Iger saying “Star Wars: The Force Awakens” probably rang up about $528 million in worldwide box-office sales in its record weekend debut.

     Disney’s decline Monday was likely due to people taking profits after the success of the film, Cowen & Co. analyst Doug Creutz said. “People are asking themselves what they own the stock for now,” he said. The shares are in the midst of their worst three-day stretch since August.

     Chipotle Mexican Grill Inc. lost 3.5 percent to its lowest since May 2014, after the U.S. Centers for Disease Control and Prevention said the company’s restaurants were being investigated for their possible link to a new outbreak of a different strain of E. coli.

 

Have a wonderful evening everyone.

Be magnificent!

 

“Enjoy the little things in life for one day you’ll look back and realize they were big things.” – Kurt Vonnegut

 

As ever,
 

Karen
 

 “The true secret of happiness lies in taking a genuine interest in all the details of daily life.” William Morris

 

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