Category: Events

Dear Friends,

Tangents:

Frank Sinatra was born on December 12^th, 1915, so next Saturday will mark 100 years since his birth.  The Wall Street Journal featured this article a few days ago.  I enjoyed it (a little nostalgia invoking) and thought you might too:

Still Attuned to Sinatra at 100

By James Kaplan

A friend of mine was flying back from Europe a few years ago and began talking with his seatmate, a gentleman who happened to be a Swedish opera singer. Somehow Frank Sinatra came up, and, as my friend told me, the singer suddenly turned very grave. “Ah,” he said. “That is a voice without equal.”

Something about Frank has sunk in deeply, from San Francisco to Stockholm. In his centennial year—he was born Dec. 12, 1915—Sinatra is much in the air, and with good reason. We celebrate his artistry, his matchless personal style, his undying charisma, his apparently inexhaustible effect on American culture.

One question I’m often asked as a Sinatra biographer is what surprised me most about my research. I usually have the feeling—Frank being Frank—that some juicy tidbit of gossip, heretofore unearthed, is what I’m being asked for. My answer probably lets people down: The most surprising thing I found out was how very hard he worked on his singing.

Though he dropped out at 16 from A.J. Demarest High School in Hoboken, N.J., Frank had a brilliant and inquisitive mind; he was verbally gifted, with an original way of expressing himself in the many notes and letters he wrote over the decades. For instance, in 1988Daniel Okrent wrote an Esquire essay praising Sinatra’s late-age durability. In response, the Chairman sent Mr. Okrent a graceful missive thanking him for helping to “explain me to me with a rose in your prose” and for applying his “X-ray word-processor to see so deeply into the heart and soul of this very lucky son of Hoboken who remains eternally overcome at God’s plan for his life.”

Sinatra was a self-educated man, a lifelong reader, mainly of biographies. When it came to popular songs, the lyrics mattered as much to him as the music, if not more. And as soon as he began singing professionally, he started a practice that he continued throughout his career.

“I take a sheet with just the lyrics. No music,” he once told the casino mogul Steve Wynn.“At that point, I’m looking at a poem. I’m trying to understand the point of view of the person behind the words. I want to understand his emotions. Then I start speaking, not singing, the words so I can experiment and get the right inflections. When I get with the orchestra, I sing the words without a microphone first, so I can adjust the way I’ve been practicing to the arrangement. I’m looking to fit the emotion behind the song that I’ve come up with to the music. Then it all comes together.”

Once he sang that number, on record or on stage, he inhabited that lyric, felt it so deeply that anyone listening felt it, too. Combine that with his genius ear and the phrasing he learned from Billie Holiday’s vocals and Tommy Dorsey’s trombone solos. The result is that Sinatra gives the eerie impression that he is thinking these thoughts, feeling these feelings, in the moment the listener is hearing about them. Nobody else quite manages to bring this off.

I’ve studied and written about Frank Sinatra for 10 years, and though I’ve sometimes disliked him, I’ve never been bored with him. His best singing—of which there is a very great deal—still gives me goosebumps, every time. I believe that we will still be celebrating Sinatra, and listening to him, next year, and the year after that, and (as the title of another of his numbers has it) a hundred years from today.

Mr. Kaplan is the author of “Sinatra: The Chairman,” just out from Doubleday.

PHOTOS OF THE DAY

A large flock of greater white-fronted geese, fly near a fishpond in the puszta or Hungarian steppe of Hortobagy, east of Budapest, Hungary, Friday. This species native in Russia, Greenland and North America is a regular guest of the Carpathian Basin, an important wintering area for it. Zsolt Czegledi/MTI/AP

 

Sunlight peaks through a gap in the clouds as a storm clears to the east of Spruce Mountain in the view overlooking Webb Lake, Friday, near Weld, Maine. Robert F. Bukaty/AP

 

A historical re-enactment enthusiast dressed as a soldier rests in a tree near the southern Moravian village of Herspice on Friday. Hundreds of history enthusiasts gathered near the city of Slavkov before a re-enactment of Napoleon’s famous battle of Austerlitz on Saturday to mark its 210th anniversary. David W Cerny/Reuters

Market Closes for December 4^th, 2015

Market Index	Close	Change
Dow Jones	17847.63	+369.96   +2.12%
S&P 500	2091.69	+42.07   +2.05%
NASDAQ	5142.270	+104.743   +2.08%
TSX	13358.77	+34.10
		+0.26%

International Markets

Market Index	Close	Change
NIKKEI	19504.48	-435.42
		-2.18%
HANG SENG	22235.89	-181.12
		-0.81%
SENSEX	25638.11	-248.51
		-0.96%
FTSE 100	6238.29	-36.71
		-0.59%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.580	1.625
CND. 30 Year Bond	2.300	2.328
U.S.    10 Year Bond	2.2711	2.3189
U.S. 30 Year Bond	3.0103	3.0600

Currencies

BOC Close	Today	Previous
Canadian $	0.74841	0.74961
US $	1.33616	1.33402
Euro Rate 1 Euro=		Inverse
Canadian $	1.45333	0.68808
US $	1.08769	0.91938

Commodities

Gold	Close	Previous
London Gold Fix	1079.25	1055.45
Oil	Close	Previous
WTI Crude Future	39.97	41.08

Market Commentary:

Canada

By Dani Burger

     (Bloomberg) — Canadian stocks rose, trimming a weekly decline, as gold miners rallied with the price of the metal and banks advanced.

     Raw-material producers rose 3.2 percent as bullion surged the most since April on speculation the Federal Reserve will take a gradual approach when it begins raising interest rates. Energy companies fell 1.7 percent after OPEC signaled it will continue to produce 31.5 million barrels a day, according to a delegate with knowledge of the decision. That sent crude prices below $40 a barrel in New York.

     The Standard & Poor’s/TSX Composite Index added 34.10 points, or 0.3 percent, to 13,358.77 at 4 p.m. in Toronto. The gauge fell 0.1 percent in the week for a second straight decline.

     A Canadian labor market report showed employment fell more than economists forecast in November. Jobs dropped by 35,700 following a gain of 44,400 in October. That compares to a projected decrease of 10,000 jobs, according to economists surveyed by Bloomberg. The unemployment rate rose to 7.1 percent, Statistics Canada said Friday in Ottawa.

     Energy companies, which account for more than 18 percent of the nation’s benchmark index, have slumped 24 percent this year. Along with energy stocks, industrial companies also declined Friday. The group fell 1.2 percent, weighed down by railway companies.

     Canadian Pacific Railway Ltd. declined 4.1 percent. Norfolk Southern Corp. rejected the company’s $28 billion takeover, saying that even at a sweetened price, a deal would be unlikely to gain regulatory approval.

     Metals prices are recovering after the dollar weakened the most in almost nine months on Thursday. Silver Standard Resources Inc. gained 5.7 percent and Agnico Eagle Mines Ltd. rose 8.3 percent.

     Barrick surged to the highest level since July. The world’s largest producer of metal is extending a $4 billion revolver loan by a year and negotiated a covenant change, the company said in a statement Thursday.

US

By Joseph Ciolli and Dani Burger

     (Bloomberg) — U.S. stocks rallied, with the Standard & Poor’s 500 Index recovering from its steepest drop in two months amid its strongest gain in nearly three, as jobs data bolstered confidence that the economy is strong enough to withstand higher borrowing costs.

     Technology and financial shares paced Friday’s advance, with Apple Inc., Microsoft Corp. and JPMorgan Chase & Co. all rising more than 3.1 percent, to cap a whipsaw week of trading that drove the benchmark index to moves of more than 1 percent in four straight sessions.

     The S&P 500 climbed 2.1 percent to 2,091.69 at 4 p.m. in New York, its strongest gain since Sept. 8. The gauge posted its ninth weekly advance in the last 10. The Dow Jones Industrial Average gained 369.96 points, or 2.1 percent, to 17,847.63, erasing its weekly decline. The Nasdaq Composite Index added 2.1 percent. A measure of volatility plunged the most in two years. About 7.7 billion shares traded hands on U.S. exchanges, 8.7 percent above the three-month average.

     “This number plus last month’s report really wipes out the stench from the miss we saw in August and September,” Phil Orlando, who helps oversee $360 billion as chief equity-market strategist at Federated Investors Inc. in New York., said by phone. “This number ought to clinch it for the Fed in terms of liftoff in December. We should have a spike after yesterday’s overreaction on the euro and Draghi.”

     Stocks extended gains in afternoon trading after European Central Bank President Mario Draghi said the bank has the power to act to the extent it sees necessary to defend its inflation mandate, and is willing to use it. His comments came a day after the ECB unveiled stimulus measures that disappointed investors, sparking a selloff in Europe that spread to the U.S.

     Friday’s rally began after a report showed a larger-than- forecast 211,000 increase in November U.S. payrolls, following a 298,000 gain a month earlier that was bigger than previously estimated. The jobless rate held at 5 percent, a more than seven-year low.

     A healthy rate of hiring has raised the odds that Federal Reserve officials will boost rates this month for the first time since 2006. The pace of future increases is contingent on progress toward the central bank’s inflation goal and probably depends on how quickly wage pressures mount as the job market tightens.

     Today’s report was the last major jobs data before the Fed’s December policy meeting. In two separate speeches this week, Fed Chair Janet Yellen signaled the economy is ready for a rate increase as soon as this month and that she hopes to tighten monetary policy slowly. Traders are pricing in 76 percent odds of a liftoff.

     Philadelphia Fed President Patrick Harker said today the central bank should raise interest rates “sooner rather than later” to allow a gradual pace of future increases, in his first public comments on monetary policy since taking office.

     “The data implies an improving U.S. economy, which should provide a backdrop for the Fed to raise rates at their upcoming meeting,” said Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles. “You’ll see the market react positively to this data. Expect to see strong performance from financial stocks today, as they’ll be the beneficiaries of a potential rate hike.”

     With Friday’s gains, the S&P 500 erased its weekly decline. A rally on Tuesday to kick off December sent the index to its highest level in almost a month, and within 1.4 percent of its record set in May. Since then, it’s down 0.5 percent, while still about 12 percent above its low in August.

     The Chicago Board Options Exchange Volatility Index fell 18 percent Friday to 14.81, its steepest drop in more than two years. The measure of market turbulence known as the VIX surged 14 percent on Thursday, the most in three weeks.                         

     Nine of the S&P 500’s 10 main groups rose today, with financial, telephone, technology and health-care companies gaining the most. All nine advancing industries climbed more than 1.4 percent.

     Financial companies in the S&P 500 added 2.7 percent, their biggest increase in more than three months, as investors speculated that banks will benefit from higher benchmark lending rates. Meanwhile, the 10-year U.S. Treasury note’s yield declined 1.8 percent, trimming a 6.1 percent surge yesterday. Charles Schwab Corp. increased 4.6 percent, while Morgan Stanley and Bank of America Corp. rose more than 2.5 percent.

     Consumer staples stocks climbed 2.3 percent, the most since Aug. 26. Mondelez International Inc. and Molson Coors Brewing Co. rose more than 3.4 percent. Procter & Gamble Co. added 2.8 percent, its best advance in six weeks.

     Newmont Mining Corp., the biggest U.S. gold producer, climbed 9.2 percent to post the strongest gain in the S&P 500 as gold prices jumped the most since April. The shares closed at the highest level since July. Alcoa Inc. advanced 3.9 percent and Dow Chemical Co. added 2.8 percent to pace raw materials’ 1.8 percent climb.

     Electronic Arts Inc. increased 4.7 percent, its biggest gain since Oct. 12, after the stock was raised to the equivalent of buy from neutral by Atlantic Equities. Dollar Tree Inc. climbed 4.3 percent to a three-month high after being raised to a “top pick” from outperform at RBC Capital Markets. Toymaker Mattel Inc. added 4.3 percent to its highest since July 15.

     The Bloomberg U.S. Airlines Index gained 3.9 percent, the most since Oct. 9, amid the slide in crude oil. Southwest Airlines Co. and Alaska Air Group Inc. climbed at least 4.4 percent to trade at all-time highs. All 11 companies in the gauge rose.

     The S&P 500 Energy Index slipped 0.5 percent. Oil producers in the group took a hit with crude falling 2.5 percent after OPEC decided to maintain production at current levels and refrained from setting an official output target. Consol Energy Inc. and Kinder Morgan Inc. slid more than 11 percent, while Southwestern Energy Co. lost 5.5 percent.

     NRG Energy Inc., the biggest independent U.S. power producer, fell for the third time in four days, taking its slide this week to 23 percent. The shares plunged 13 percent on Wednesday after announcing the sale of two power plants, and bounced 1.7 percent yesterday after saying Chief Executive David Crane was stepping down. The stock fell another 18 percent today, closing at an all-time low.

     Barnes & Noble Inc. dropped 17 percent to its lowest since February 2014. The bookseller posted a quarterly loss and weaker sales, hurt by sluggish online orders and a fast-declining Nook e-reader business.

 

Have a wonderful evening everyone.

 

Be magnificent!

Man cannot be broken down into emotions, intellect, or action.

Man is a whole.

When these three elements of intellect, feelings, and action are in harmony, they make up man.

Swami Prajnanpad

As ever,

 

Carolann

 

In order to succeed, we must first believe that we can.

                               -Nikos Kazantzakis, 1883-1957

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

1967 : 

The first human heart transplant happened on this day in 1967 at Groote Schuur Hospital in Cape Town, South Africa.  Surgeons in Cape Town, South Africa, led by Dr. Christiaan Barnard performed the first human heart transplant.

WORLD PROGRESS RECENTLY REPORTED:

BHUTAN: 

It’ll be paving with – plastic.  Plastic waste will be mixed with bitumen for highway blacktop, curbing bitumen imports from India and cutting plastic waste – a growing problem.  The planned “Plastic Roads” (or “Green Roads”) initiative involves a public-private partnership between a construction company, the  first recycling plant, and the public sector.  –Thomson Reuters Foundation.

SAN DIEGO:

Some orcas may get a break once SeaWorld delivers on its pledge – developed in the wake of harsh criticism – to replace at least some shows involving the killer whales at its southern California park with an “all-new orca experience with a conservation theme in a more natural setting” in 2017.  (Shows may continue in Florida and elsewhere.)  Some critics were unimpressed: “SeaWorld fully intends to continue forced breeding of orcas in captivity,” said the International Marine Mammal Project of Earth Island Institute. –Reuters, Earth Island Institute.

MEXICO:

Journalists are working more aggressively, expanding their use of a freedom-of-information law that came into effect in 2002.  In the past year alone the law has been deployed in covering major stories such as the disappearance OF 43 college students in  Guerrero State, a house-buying scandal at high levels of  government, and inefficiencies in the state-owned oil company Pemex.  Mexico remains one of the most dangerous places in the world for journalists, with 35 killed since 1992.  –The Christian Science Monitor.

NIGERIA:

Anti-corruption efforts are taking hold.  The administration of President Muhammadu Buhari, who has been in office six months, is delivering on  a campaign promise to clean up graft: Fines have been imposed on companies, executives have been arrested, and investigations are expanding into the laundering of public revenues directed into foreign bank accounts.  The president spent months vetting a new, smaller cabinet; that too, was billed as a move to prevent corruption. –The Christian Science Monitor; National Law Journal, Deutsche Welle.

CANADA:

Women claimed 15 of 30 cabinet positions in appointments made by incoming Prime Minister Justin Trudeau – with some adjustments to titles likely being made to ensure full minister status.  The nation joins Finland, Cabo Verde, Sweden, France and Liechtenstein among those in which at least half the national ministerial positions are held by women.  –CBC, Inter-Parliamentary Union.

PHOTOS OF THE DAY

A woman photographs a sea of fog over Lake Leman at the Tour de Gourze near Lausanne, Switzerland, Thursday. Denis Balibouse/Reuters

A renewable energy innovation called ‘Wind Tree’ is seen at COP21, the United Nations Climate Change Conference, in Paris Thursday. Each ‘leaf’ acts as a mini wind-turbine to generate electricity. Wind Tree is presented by Engie, the French multinational electric utility company. Francois Mori/AP

Market Closes for December 3^rd, 2015

Market Index	Close	Change
Dow Jones	17477.67	-252.01   -1.42%
S&P 500	2048.84	-30.67   -1.47%
NASDAQ	5037.527	-85.695   -1.67%
TSX	13316.53	-147.29
		-1.09%

International Markets

Market Index	Close	Change
NIKKEI	19939.90	+1.77
		+0.01%
HANG SENG	22417.01	-62.68
		-0.28%
SENSEX	25886.62	-231.23
		-0.89%
FTSE 100	6275.00	-145.93
		-2.27%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.625	1.514
CND. 30 Year Bond	2.328	2.229
U.S.    10 Year Bond	2.3189	2.1780
U.S. 30 Year Bond	3.0600	2.9081

Currencies

BOC Close	Today	Previous
Canadian $	0.74961	0.74941
US $	1.33402	1.33438
Euro Rate 1 Euro=		Inverse
Canadian $	1.46004	0.68491
US $	1.09446	0.91369

Commodities

Gold	Close	Previous
London Gold Fix	1055.45	1055.40
Oil	Close	Previous
WTI Crude Future	41.08	39.94

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell to a two-week low, as Europe’s central bank sparked a rout in risk assets after the scale of additional stimulus disappointed.

     Global markets slipped as some investors were disappointed by the extent of the European Central Bank’s latest moves at the same time Federal Reserve Chair Janet Yellen reiterated that tightening is imminent.

     “The market is still nervous,” said David Cockfield, fund manager at Northland Wealth Management in Toronto. His firm manages about C$325 million. “I’d say because the market is so unpredictable we’ve been kind of edging into and out of things. You just try to keep your head down.”

     The Standard & Poor’s/TSX Composite Index fell 139.15 points, or 1 percent, to 13,324.67 at 4 p.m. in Toronto, after sliding 1.3 percent yesterday for the biggest loss since Nov. 12. The benchmark equity gauge has dropped 8.9 percent this year, trailed only by Singapore and Greece among developed markets.

     Canada’s banks paced declines. Toronto-Dominion Bank, the nation’s largest lender, lost 1.3 percent as higher earnings offset C$243 million ($183 million) in restructuring costs related to job cuts. Canadian Imperial Bank of Commerce fell 2.2 percent, the most in three months, after net income slid.

     A gauge of developed and developing equity markets lost 0.7 percent, to a Nov. 17 low, as the S&P 500 slumped 1.4 percent for the biggest decline in more than two months.

     Canadian energy and raw-materials producers, which account for about 30 percent of the nation’s benchmark index, have each slumped more than 21 percent this year and are the second and third worst-performing industries in the S&P/TSX ahead of health-care stocks.

     A combination of slowing economic growth in China, concerns about the economic health of European nations and a rally in the U.S. dollar with impending interest-rate increases from the Fed as soon as Dec. 16 have crimped commodities prices this year.

     Barrick Gold Corp. and Goldcorp Inc. increased at least 1.9 percent as raw-materials producers gained 0.5 percent as a group. Gold futures for February delivery rose 0.7 percent, rebounding from a February 2010 low.

US

By Oliver Renick and Lu Wang

     (Bloomberg) — The Standard & Poor’s 500 Index slumped the most in two months as the scale of the European Central Bank’s additional stimulus measures disappointed some investors, while Federal Reserve Chair Janet Yellen signaled the economy is ready for higher borrowing costs.

     Equities fell to their lowest level in almost three weeks as investors grapple with an array of influences, including divergent policies from major central banks, uneven economic data and turbulence in commodities markets. Energy shares slid Thursday for a second session despite a rebound in oil prices, and health-care companies had their biggest tumble in nearly two months.

     The S&P 500 dropped 1.4 percent to 2,049.62 at 4 p.m. in New York, following a 1.1 percent slide yesterday. The gauge sank below its average price during the past 200 days for the first time in three weeks. The Dow Jones Industrial Average lost 252.01 points, or 1.4 percent, to 17,477.67. The Nasdaq Composite Index declined 1.7 percent. About 8 billion shares traded hands on U.S. exchanges, 13 percent above the three-month average.

     There is “no panic, just disappointment’’ with the ECB, as the selloff seems to be orderly, Ryan Larson, head of equity trading at RBC Global Asset Management U.S. Inc. in Chicago, said in an interview. “Couple that with renewed terrorism concerns following yesterday’s tragic events in California, Chairwoman Yellen reiterating again this morning the desire to raise rates sooner rather than later, albeit gradually, and it’s all been enough for participants to take money off the table.”

     The ECB will extend its quantitative easing program until at least March 2017 and broaden the range of assets purchased while keeping the pace of monthly buying steady at 60 billion euros ($65 billion), President Mario Draghi said. The bank’s Governing Council cut its deposit rate to minus 0.3 percent, in line with forecasts by economists in a Bloomberg survey. Policy makers left the main refinancing rate and the marginal lending rate unchanged.

     “There were huge expectations for Mr. Draghi and the ECB to provide further stimulus at today’s meeting, and in the markets mind they fell short of those expectations,” Larson said. Draghi had been preparing markets for further stimulus since October, prompting economists surveyed by Bloomberg to unanimously predict the central bank would boost its efforts this week.

     Following the ECB, Yellen delivered a cautiously upbeat outlook for the U.S. economy, signaling the conditions necessary for an interest-rate increase have been met and that she hopes to tighten monetary policy slowly after liftoff. Her comments before Congress’s Joint Economic Committee were nearly identical to portions of a speech she gave Wednesday to the Economic Club of Washington. Traders are pricing in 74 percent odds the Fed will raise rates at the conclusion of its next meeting on Dec. 16.

     As policy makers assess the strength of the economy, an index of activity at service industries expanded in November at the slowest pace in six months, indicating malaise in manufacturing is impeding progress in other parts of the economy. The measure saw its biggest monthly decrease in seven years. A separate report showed applications for unemployment benefits rose last week, maintaining a see-saw pattern around four-decade lows.                          

     The Chicago Board Options Exchange Volatility Index rose 14 percent Thursday to 18.11, reaching a two-week high. The measure of market turbulence known as the VIX trimmed an earlier jump of almost 22 percent.

     The S&P 500 is down 2.5 percent since a rally Monday to kick off December sent the index to its highest level in almost a month, and to within 1.4 percent of its record set in May. Performance among the benchmark’s 10 main industries was lopsided for a second day as all the groups fell. Health-care and energy companies led the drop, and have lost more than 3 percent since Monday’s close.

     “Everyone was positioned the same way going into today,” Michael Block, chief equity strategist at Rhino Trading Partners LLC in New York, said by phone. “It all snowballed and on days when that happens you have a problem. It’s the idea the central banks won’t be there to bail out equities — bonds got weaker and equities got weaker.”

     Energy stocks declined 2 percent, even as West Texas Intermediate oil futures climbed 2.9 percent. Cash-strapped OPEC nations from Venezuela to Iran are piling pressure on Saudi Arabia to reduce oil output as the group of producer nations prepare to meet tomorrow in Vienna. A report Saudi Arabia may propose a 1 million barrel a day output cut is “baseless,” a Saudi official told Bloomberg.

     Chesapeake Energy Corp. tumbled 12 percent after asking bond holders to accept longer-dated debt instruments. Shares fell to a 13-year low. Southwestern Energy Co. and Marathon Petroleum Corp. dropped more than 6.1 percent.

     Health-care companies fell 2.2 percent as biotechnology shares slumped. Vertex Pharmaceuticals Inc. and Celgene Corp. sank more than 4.3 percent with the Nasdaq Biotechnology Index losing 3.4 percent, its biggest slide since Oct. 6. Merck & Co. and UnitedHealth Group Inc. fell more than 2.2 percent to rank among the Dow’s worst performers.

     Following its strongest gain in two months, Yahoo! Inc. slid 3.7 percent to pace declines among technology companies. Corning Inc. decreased 4.9 percent, the most in 16 months. Microsoft Corp. and Facebook dropped more than 1.5 percent.

     Kroger Co. added 4.7 percent to a record as the largest U.S. supermarket chain reported third-quarter profit that topped analysts’ estimates and raised its annual forecast after new locations and organic products fueled sales. Costco Wholesale Corp. gained 1.6 percent after the company reported November sales that beat expectations.

     Avago Technologies Ltd. surged 9.5 percent, the most in the S&P 500 after reporting fourth-quarter profit that topped estimates on demand for mobile-phone components. Broadcom Corp., set to be acquired by Avago, rallied 4.1 percent on the news to the highest since May.

 

Have a wonderful evening everyone.

 

Be magnificent!

Man cannot be broken down into emotions, intellect, or action.

Man is a whole.

When these three elements of intellect, feelings, and action are in harmony, they make up man.

Swami Prajnanpad

As ever,

 

Carolann

 

The noblest pleasure is the joy of understanding.

                        -Leonardo da Vinci, 1452-1509

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

The Rockefeller Christmas tree, with more than 30,000 bulbs and over five miles of electrical wire, is set to be lit tonight. Meanwhile, the lighting of the U.S. Capitol Christmas tree is also tonight. (NJ.com) 

Spent a few days at The Golden Door in California last week during the American Thanksgiving holiday and one of the handouts that Gary brought back from a session he attended contains lots of good advice on managing  the days ahead.  It is entitled  “PRACTICE SAGE STRESS for the Holidays.”  Here is the advice given by Cindi Peterson, MA, C.Ht.:

KEEP IT SIMPLE

Unrealistic expectations are the primary cause of stress during the holidays.  Remember no one is perfect, so your house, gifts and food will probably not be picture perfect.  Do not expect everything to go as planned.  In other words, things do not have to be perfect for the holidays to be enjoyable.

USE HUMOR AS A COPING TOOL

When tensions rise, try to look for the humor in a situation.  A well-timed joke can go a long way to ease tensions between people. Do not be afraid to laugh at yourself.

SHIFT YOUR PERSPECTIVE

If things do not go according to plan and unexpected situations arise, try to tell yourself that some day you will look back on this and laugh.  Try to shift points of view and put the unpleasant event into a broader perspective.  Tell yourself that this is going to be a funny story someday even if it is not funny now.

YOU DESERVE A BREAK TODAY

Taking care of yourself and attending to your needs is not selfish.  Pausing for a nap sure beats collapsing from exhaustion.  Breaks can be in various forms- from exercise, to listening to music, to taking a warm bath.  Understand their value in getting you through the holidays and be sure to make time for this.  Remember self-care is not the same as selfishness!

KEEP THAT BODY MOVING

If you have an exercise routine, then do your best to stick with it.  It may mean cutting down on a few holiday-related activities, but it is well worth it in benefits, which are both physical and psychological.  If you cannot do all the things you normally do, try to find a compromise.  Be creative and involve your family members if you  must spend time with them.  Invite them to go along on a walk or to dance in the family room for a few minutes.  Anything to get people moving is beneficial.

“TOGETHERNESS”  DOES NOT MEAN 24 HOURS A DAY

Too many people try to make up in a  few days what they miss during the year.  It is simply not possible to do that.  Aim for “quality time” and not quantity time.  That means feeling free to excuse yourself to go on a walk by yourself or anything else.  A small ‘time out” can go a long way towards restoring energy, especially when one is surrounded by people, noise and activities.

JUST SAY “NO”

If the word “No” is not in your vocabulary, include it – especially if you are susceptible to saying ‘yes’ to every request for your time.  Learn to use this word often, set your limits and stick to them.  You don’t have to attend ever party you are invited to or volunteer at every holiday function.  Set priorities  so you can truly enjoy the activities you choose to attend.

STRESSED IS DESSERTS SPELLED BACKWARDS

Food and drink are certainly meant to be enjoyed during the holidays.  However, watch out for stress-related eating and drinking that can sabotage your efforts to pursue health during the rest of the year.  The first step is to become aware that holiday stress can be an important reason why people are more likely t digress from their healthy habits.  The next step is to reduce the risk of stress-related eating and drinking.  By following the suggestions above, you can reduce both your stress levels and the likelihood that you will engage in stress-related eating and drinking.

TRY TO HAVE “HOLY” DAYS

The holidays have drifted from their original intent and, for many, simply mean a time of more running around and more shopping.  Take a moment to reflect on the original intent of holidays and its significance in your life.  Even if you do not follow a particular faith, it is a good time to step back and think about the blessings in your life.

GIVE GIFTS OF LOVE

A priceless gift is one from the heart.  The worth of a gift does not come from its price tag.  The worth comes from truly making someone happy by a simple gesture or token.  Homemade baked goods, crafts and a kind word or poem will be remembered far longer than a costly gift – for it is a gift of yourself given from the heart.

THE HOLIDAYS TOO SHALL PASS.

If the stress gets to be too much and you just cannot find a way to reduce it any way, then remind yourself that the holidays too shall pass and soon you will be able to return to your routine.  And with these tips in hand, you will be well equipped to plan ahead for the next season, so that you maximize our holiday joy and minimize your holiday stresses.

PRACTICE MINDFULNESS

When you start to feel overwhelmed, come back to NOW and ask yourself what is the first thing you have to do.  Usually it is breathe deeply.  Ruminating about yesterday or worrying about tomorrow serves no purpose.  Instead, savor every moment of the holiday season.

PHOTOS OF THE DAY

First lady Michelle Obama chats with children of military families as they gather to enjoy holiday decorations and treats at the White House in Washington Wednesday. Mike Theiler/Reuters

 

A seagull lands on the artwork ‘Where the Tides Ebb and Flow,’ by Argentinian artist Pedro Marzorati, installed in a pond at Montsouris Park during COP21, the United Nations Climate Change Conference, in Paris Wednesday. Francois Mori/AP

A screen shows visitors filmed with the FLIR GF320 Infrared Camera at the System Control Fair, SCF 2015, in Tokyo Wednesday. Thomas Peter/Reuters

Market Closes for December 2^nd, 2015

Market Index	Close	Change
Dow Jones	17729.68	-158.67   -0.89%
S&P 500	2079.51	-23.12   -1.10%
NASDAQ	5123.223	-33.084   -0.64%
TSX	13463.82	-172.24
		-1.26%

International Markets

Market Index	Close	Change
NIKKEI	19938.13	-74.27
		-0.37%
HANG SENG	22479.69	+98.34
		+0.44%
SENSEX	26117.85	-51.56
		-0.20%
FTSE 100	6420.93	+25.28
		+0.40%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.514	1.494
CND. 30 Year Bond	2.229	2.228
U.S.    10 Year Bond	2.1780	2.1448
U.S. 30 Year Bond	2.9081	2.9035

Currencies

BOC Close	Today	Previous
Canadian $	0.74941	0.74851
US $	1.33438	1.33598
Euro Rate 1 Euro=		Inverse
Canadian $	1.41651	0.70596
US $	1.06155	0.94202

Commodities

Gold	Close	Previous
London Gold Fix	1055.40	1065.40
Oil	Close	Previous
WTI Crude Future	39.94	41.51

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell the most in three weeks, halting the best two-day advance in two months, as a rout in oil sparked a selloff in commodities shares.

     Energy producers dropped 2.8 percent as a group to lead equities lower. Crude futures fell to a six-year low in London and 4.6 percent to settle at $39.94 a barrel in New York on signs of discord among ministers from the Organization of Petroleum Exporting Countries. Oil has slumped about 40 percent since Saudi Arabia led OPEC’s decision a year ago to maintain output and defend market share against higher-cost shale producers.

     The Standard & Poor’s/TSX Composite Index fell 172.24 points, or 1.3 percent, to 13,463.82 at 4 p.m. in Toronto, after a two-day rally of 2 percent. The benchmark equity gauge has dropped 8 percent this year, trailed only by Singapore and Greece among developed markets.

     The Bank of Canada kept its key interest rate unchanged at 0.5 percent, where it’s been since July. All 33 economists in a Bloomberg survey predicted no move. The Canadian economy is undergoing a “complex and lengthy adjustment” as non-energy exports and the weaker currency help to contain the damage from lower oil prices, Governor Stephen Poloz said in a statement.

     Royal Bank of Canada was little-changed, paring an earlier gain. Fiscal fourth-quarter profit rose 11 percent as a jump in trading revenue and a lower tax rate helped counter slowing earnings growth from Canadian banking and declines across other key businesses.

     National Bank of Canada lost 0.5 percent, erasing earlier gains after raising its dividend 3.8 percent amid an increase in fourth-quarter profit. Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Canadian Western Bank report tomorrow. A gauge of the nation’s largest lenders has lost 4.4 percent this year, on track for the first annual decline since 2011.

     Energy and raw-materials producers, which account for about 30 percent of the index, have each slumped more than 21 percent this year and are the second and third worst-performing industries in the S&P/TSX ahead of health-care stocks.

     A combination of slowing economic growth in China and a rally in the U.S. dollar with impending interest-rate increases from the Federal Reserve as soon as Dec. 16 have crimped commodities prices this year.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks fell as tumbling oil prices sparked a broader selloff in equities, while Federal Reserve Chair Janet Yellen laid the groundwork for a December interest- rate boost by signaling increased confidence in the economic outlook.

     Equities continued a pattern of alternating between gains and losses that led the S&P 500 in November to its narrowest monthly move in six years. Energy producers today dropped the most in two months as crude fell below $40 a barrel for the first time since August, and raw-material shares had their biggest slide in three weeks. Technology companies erased early gains as Qualcomm Inc. and Yahoo! Inc. trimmed their rallies.

     The Standard & Poor’s 500 Index declined 1.1 percent to 2,079.51 at 4 p.m. in New York, reversing yesterday’s 1.1 percent surge to open the month. The Dow Jones Industrial Average lost 158.67 points, or 0.9 percent, to 17,729.68. The Nasdaq Composite Index dropped 0.6 percent after earlier rising as much as 0.4 percent. About 7.4 billion shares traded hands on U.S. exchanges, 4 percent above the three-month average.

     “Yellen didn’t say anything miraculous that’s pushing the market down,” said Yousef Abbasi, global market strategist at JonesTrading Institutional Services LLC in New York. “We floated up yesterday really on just air and seasonality dictating that December is a higher month. With the combination of the meltdown in commodities we’re seeing today, the Euro CPI number sending the U.S. dollar higher, the data with regard to employment and Yellen’s tone, reality is setting in here.”

     The S&P 500 extended losses in afternoon trading as crude’s decline accelerated before an OPEC meeting Friday. As three days of economic events likely to set the course for global markets into 2016 kicked off, a renewed rout in crude distracted traders from their focus on the looming divergence in monetary policy as OPEC has shown few signs it will vote to trim output. The Bloomberg Commodity Index fell the most in three months.

     In a speech delivered at the Economic Club of Washington, Fed Chair Yellen said she’s increasingly confident that the economy is growing sufficiently to achieve labor-market improvement and higher inflation. She also warned that waiting too long to end the era of near-zero interest rates could force the central bank to tighten too quickly, which would risk disrupting financial markets and the six-year expansion.

     Fed officials have been trying to gauge whether the economy is headed toward their goals and can sustain growth as rates increase. Atlanta Fed President Dennis Lockhart said earlier today he favors raising rates this month, absent any information that “drastically” changes the economic outlook. San Francisco Fed President John Williams joined Yellen in warning of risks in delaying liftoff. The Fed chair is scheduled to testify Thursday on the outlook before Congress’s Joint Economic Committee.

     In a speech Tuesday night, Fed Governor Lael Brainard urged her colleagues at the central bank to move cautiously as they raised rates and to expect the Fed’s benchmark to top out at a lower level than in previous economic expansions. Traders are pricing in 72 percent odds the Fed will liftoff when its next two-day meeting concludes on Dec. 16.

     Meanwhile, major central bank policies are set to diverge as European Central Bank President Mario Draghi has been priming markets for action since October. Economists surveyed by Bloomberg unanimously predict the ECB will boost stimulus again at its meeting tomorrow, while the bank is less than halfway through a 1.1 trillion-euro ($1.2 trillion) bond-buying program.

     Before the government’s jobs report on Friday, data today showed U.S. private payrolls grew more than expected, with companies adding 217,000 workers in November in a sign the labor market continues to strengthen. The Fed’s Beige Book survey said the economy expanded modestly across most of the U.S. in October and November amid rising consumer spending.

     The S&P 500 has rebounded 11 percent from its low in August on growing confidence that the economy is sturdy enough to handle higher borrowing costs. The benchmark is up 1 percent for the year, and has alternated between gains and losses over the last 12 sessions, the longest such streak since 2013. The gauge hasn’t had back-to-back advances since Nov. 3.

     The Chicago Board Options Exchange Volatility Index added 8.5 percent Wednesday to 15.91, wiping out most of yesterday’s 9 percent slide to a three-week low. The measure of market turbulence known as the VIX finished November up 7 percent, its first monthly increase since a record jump in August.

     All of the S&P 500’s 10 main industries fell, an about-face after yesterday’s across-the-board gains, with six groups sinking more than 1 percent. Energy lost 3.1 percent and utilities dropped 2.2 percent. Technology shares sagged 0.6 percent after earlier rising as much as 0.5 percent.

     Energy companies retreated for the first time in three days as West Texas Intermediate crude fell 4.6 percent amid ample stockpiles and signs of discord as ministers from the Organization of Petroleum Exporting Countries arrive in Vienna to discuss production policy.

     Kinder Morgan Inc. dropped 7.9 percent to all-time low, sliding more than 4 percent for a second day after the largest U.S. pipeline owner had its credit outlook lowered after agreeing to increase its stake in an affiliate that Moody’s Investors Service said is at risk of default. Oneok Inc. and Murphy Oil Corp. fell at least 6.7 percent, while Exxon Mobil Corp. sank 2.9 percent, the most in the Dow.

     NRG Energy tumbled 13 percent, the most in the S&P 500, to an 11-year low. The company said it’s selling two generating stations for $138 million as part of its “asset rebalancing program.” Citigroup Inc. yesterday initiated coverage of the shares with a sell rating.

     Qualcomm gained 5.2 percent, paring an earlier 8.4 percent gain, after signing a patent licensing agreement with Chinese smartphone company Xiaomi. Yahoo rose 5.8 percent, the best performer in the S&P 500, as the company was said to consider a potential sale of its main Internet business.
 

Have a wonderful evening everyone.

 

Be magnificent!

Meditation is one of the greatest arts in life, perhaps the greatest,

and one cannot possibly learn it from anybody else,

that is the beauty of it.

It has no technique and therefore no authority.

When you learn about yourself, watch yourself, watch the way you walk,

how you eat, what you say, the gossip, the hate, the jealousy –

if you are aware of all that in yourself, without any choice,

that is part of meditation.

Krishnamurti

As ever,

 

Carolann

We are what we repeatedly do.  Excellence, then, is not an act, but a habit.

                                                                  -Aristotle, 384 BC- 322 BC

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:  

On this day in 1955, Rosa Parks was jailed for refusing to give up her seat on a public bus to a white man, a violation of Montgomery, Alabama’s segregation laws.

On Dec. 1, 1959, representatives of 12 countries, including the United States, signed a treaty in Washington setting aside Antarctica as a scientific preserve, free from military activity.
1913 – The first drive-in automobile service station opened, in Pittsburgh.
Woody Allen’s birthday, b. 1935.

SOLSTICE FIRE

…Suddenly, it is December and it is dark.
In July I had so much;
remember how I squandered it,
going to a movie that sunny afternoon?
What was I thinking?

…This year, if I am lucky,
and if this fire works,
the Night Thief will begin restitution.
Tomorrow a minute is back, maybe two.
Before long, I’m thinking that my gold
will be returned to its rightful owner.
And, as for me,
I will be more careful next time.

                           -Will Winter

Each moment of the year has its own beauty….a picture which was never seen before and shall never be seen again. –Ralph Waldo Emerson.

PHOTOS OF THE DAY

 

Olas, the beach snowman, looks over an intersection on Las Olas Blvd. Tuesday in Fort Lauderdale, Fla. The 20-foot snowman has become selfie-central since its Nov. 24 appearance on the beach. Joe Cavaretta/South Florida Sun-Sentinel/AP

 

Tom O’Hara snowplows the sidewalk with his dog, Smokey, by his side after the area received heavy snow in Sioux Falls, S.D., Tuesday. A record-breaking snowstorm lingering over the northern Plains causing slippery roads, but bringing much-needed moisture to the region. Jay Pickthorn/The Argus Leader/AP

 

People sit on La promenade des Anglais at sunset in Nice, southeastern France, Tuesday. Temperatures in the area rose to 18 degrees Celsius (64 Fahrenheit.) Lionel Cironneau/AP

Market Closes for December 1^st, 2015

Market Index	Close	Change
Dow Jones	17888.35	+168.43   +0.95%
S&P 500	2102.63	+22.22   +1.07%
NASDAQ	5156.309	+47.643   +0.93%
TSX	13636.06	+166.23
		+1.23%

International Markets

Market Index	Close	Change
NIKKEI	20012.40	+264.93
		+1.34%
HANG SENG	22381.35	+384.93
		+1.75%
SENSEX	26169.41	+23.74
		+0.09%
FTSE 100	6395.65	+39.56
		+0.62%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.494	1.570
CND. 30 Year Bond	2.228	2.286
U.S.    10 Year Bond	2.1448	2.2078
U.S. 30 Year Bond	2.9035	2.9746

Currencies

BOC Close	Today	Previous
Canadian $	0.74851	0.74842
US $	1.33598	1.33615
Euro Rate 1 Euro=		Inverse
Canadian $	1.42078	0.70384
US $	1.06348	0.94031

Commodities

Gold	Close	Previous
London Gold Fix	1065.40	1061.90
Oil	Close	Previous
WTI Crude Future	41.51	41.65

Money is better than poverty, if only for financial reasons.  –Woody Allen.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks advanced to the highest level in almost a month as data showing the economy expanded for the first time in three quarters boosted lenders and energy producers.

     Canada’s economy grew 2.3 percent in the third quarter on gains in automotive exports and consumer spending. The economy had been hampered by a slump in energy production as oil tumbled, weighing on shares of commodity producers.

     The Standard & Poor’s/TSX Composite Index rose 166.23 points, or 1.2 percent, to 13,580.80 at 10:50 a.m. in Toronto. The benchmark equity gauge retreated 0.4 percent in November, and has dropped 7.3 percent this year, trailed only by Singapore and Greece among developed markets. 

     Valeant Pharmaceuticals International Inc. contributed the most to gains in the index Wednesday. The drugmaker jumped 9.6 percent after rallying 4.5 percent on Monday. The shares have surged 33 percent since reaching a more than two-year low on Nov. 17 and now trade at the highest level since October.

     Bank of Montreal, the nation’s fourth-largest lender, added 1.4 percent to lead financial services equities higher after its profit exceeded analysts’ estimates. Canada’s largest lenders have tumbled 4.2 percent this year, on pace for their first annual decline since 2011 amid the slowing domestic economy and slumping energy and commodities prices. 

     Fourth-quarter profit at Bank of Montreal jumped 13 percent, led by capital markets and U.S. banking. The bank also raised its dividend 2.4 percent. Bank of Nova Scotia was little changed after trimming an earlier drop of more than 1 percent, as revenue growth was short of analysts’ forecasts while profit beat estimates.

     Royal Bank of Canada and National Bank of Canada are scheduled to report Wednesday, followed by Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Canadian Western Bank on Dec. 3.

     Energy and raw-materials producers, which account for about 30 percent of the index, have each slumped more than 20 percent this year for the second and third-worst performing industries in the S&P/TSX behind only health-care.

     A combination of slowing economic growth in China and a rally in the U.S. dollar with impending interest-rate increases from the Federal Reserve as soon as Dec. 16 have crimped commodities prices this year from crude to copper. The Bloomberg Commodity Index has slumped 22 percent in 2015, the biggest drop since 2008 headed for a fifth straight annual decline.

     Canadian Oil Sands Ltd. rose 4.3 percent for a second day of gains. The company has another month to find other suitors willing to counter Suncor Energy Inc.’s hostile takeover offer after Alberta regulators granted an extension to Jan. 4. Suncor’s bid expires Dec. 4. Suncor had said Nov. 26 it would walk away if Canadian Oil Sands was given more time to seek other bidders.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks rallied to begin what has historically been the strongest month of the year for global equities, breaking out of a lull that held the Standard & Poor’s 500 Index to its narrowest monthly move in six years as investors await December monetary policy decisions.

     The benchmark index added less than 0.1 percent in November as signs of a strengthening economy offset concerns of an imminent interest-rate increase. The gauge is up 2.1 percent this year, headed toward its smallest move in four years. Health-care shares rebounded Tuesday to lead gains after erasing a November advance yesterday in the month’s final session.

     The S&P 500 added 1.1 percent to 2,102.63 at 4 p.m. in New York, and closed at its highest level since Nov. 3. The Dow Jones Industrial Average climbed 168.43 points, or 1 percent, to 17,888.35. The Nasdaq Composite Index gained 0.9 percent.

     “There’s a bit more tolerance for risk right now because indices are flat and managers have to show return somewhere — there’s only four weeks to go, and they’re not doing it buying bonds,” Ron Anari, the Jersey City, New Jersey-based senior vice president of trading at ICAP Plc, said via phone. “The Fed is going to hike at some point and it might as well be now. The equity markets have got it pretty much absorbed.”

     With policy makers assessing economic data to gauge the appropriate time to raise rates, a report today showed manufacturing activity unexpectedly contracted in November, with elevated inventories leading to cutbacks in orders and production. Investors shrugged off the setback, keeping in mind assurances from Fed officials that even if they choose to tighten this month, the pace of future rate increases will be gradual.

     Traders are pricing in a 70 percent chance that the Federal Reserve will raise rates this month, down from 74 percent before the factory data. Chicago Fed President Charles Evans, among the most dovish of Fed policy makers, said in remarks today he “would prefer to have more confidence than I do today that inflation is indeed beginning to head higher” before raising rates.

     Fed Chair Janet Yellen will speak to Congress on Thursday on the economic outlook, and the European Central Bank will hold its last policy meeting of the year amid growing speculation it will take additional steps to boost inflation. The Fed will get its final look at the health of the labor market before its meeting in two weeks when the government releases the November jobs report on Friday.

     The main U.S. equity benchmark has rebounded nearly 13 percent from its low in August on growing confidence that the economy is sturdy enough to handle higher borrowing costs. The S&P 500 is less than 1.5 percent away from its record reached in May, after alternating between gains and losses over the last 11 sessions, the longest such streak since 2013.

     As equities rebounded from their lows earlier this year, the optimism led to fund managers increasing their allocation to global stocks last month. The timing was no coincidence: equities have wrapped up the year with gains on all but five occasions since 1988, with December seeing the biggest and most frequent increases of any month, according to data compiled by Bloomberg. The S&P 500 has posted a December advance in six of the past seven years.

     For next year, strategists predict the U.S. benchmark measure will gain 6.9 percent by December from yesterday’s close, according to the average estimate compiled by Bloomberg.

     The Chicago Board Options Exchange Volatility Index fell 9.1 percent Tuesday to 14.67, a three-week low. The measure of market turbulence known as the VIX finished November up 7 percent, its first monthly increase since a record jump in August. About 6.9 billion shares traded hands on U.S. exchanges, 1.6 percent below the three-month average.

     All of the S&P 500’s 10 main groups rose today, with health-care, financial and technology shares performing the best. Phone companies had the smallest increase and energy lagged as oil swung between gains and losses.

     Last month’s biggest losers in health-care were among today’s best performer. Insurers Aetna Inc., Anthem Inc. and UnitedHealth Group Inc. gained at least 3.1 percent after falling more than 4.3 percent in November. Eli Lilly & Co. led the group with a 5.4 percent climb, the most in two months, after Barclays Plc raised its rating on the shares to the equivalent of buy.

     Walt Disney Co. and Amazon.com Inc. bolstered gains among consumer discretionary companies, rising more than 1.6 percent. Current box office tracking for “Star Wars: Force Awakens” suggests analysts’ profit estimates for Disney are too low, FBR Capital Markets analyst Barton Crockett wrote in a note.

     Financial shares rose for the third time in four sessions. Morgan Stanley paced gained today with a 2.8 percent climb, advancing for a second day after news the bank is considering cutting as much as a quarter of its fixed-income trading staff. JPMorgan Chase & Co. and Goldman Sachs Group Inc. added at least 1.3 percent.                       

     Semiconductors continued to climb, helping to boost the tech group, after rising for three straight months. Micron Technology Inc. increased 3.9 percent, while Nvidia Corp. added 3.3 percent to its highest since January 2008. Among other tech movers, Google parent Alphabet Inc. advanced 2.7 percent and Facebook Inc. increased 2.8 percent to reverse declines of more than 1.1 percent yesterday.

     Energy shares rose for a second day despite oil closing little changed after the commodity’s biggest monthly decline since July. Consol Energy Inc. and Pioneer Natural Resources Co. advanced more than 3.1 percent. Consol surged 18 percent in November, its best month in four years, though it’s still the worst performer in the S&P 500 this year, down 74 percent.

     Among companies moving on corporate news, truck-engine maker Cummins Inc. slumped 7.9 percent to a three-year low after Bank of America Corp. downgraded the shares to the equivalent of sell, citing a U.S. truck market that is weakening faster than expected. The firm also cut mining equipment company Joy Global Inc. to the same rating amid a bleak global outlook for coal and industrial metals, sending the shares to an 11-year low.

     Joy Global competitor Caterpillar Inc. lost 1.5 percent, the most out of three decliners in the Dow. Its shares fell in November for the sixth time in seven months and are down 22 percent this year, the third-worst performance among the index’s 30 members.

     American Airlines Group Inc. jumped 4.9 percent, the most in more than seven weeks. A union representing 14,500 reservation agents and airport passenger-service workers yesterday approved a five-year contract that included “significant” pay raises. United Continental Holdings Inc. and JetBlue Airways Corp. added more than 2.2 percent, while a Bloomberg index of U.S. airlines increased 3 percent, its biggest gain since October.

 

Have a wonderful evening everyone.

 

Be magnificent!

The healing of the mind takes place gradually on contact with nature,

with the orange on the branch, the blade of grass eating its way into the cement,

and the hills hidden by the clouds.

Krishnamurti

As ever,

 

Carolann

 

Intelligence without ambition is a bird without wings.

                                   -Salvador Dali, 1904-1989

 

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:

MY NOVEMBER GUEST

My Sorrow, when she’s here with me,
Thinks these dark days of autumn rain
Are beautiful as days can be;
She loves the bare, the withered tree;
She walks the sodden pasture lane.

Her pleasure will not let me stay.
She talks and I am fain to list:
She’s glad the birds are gone away,
She’s glad her simple worsted gray
Is silver now with clinging mist.

The desolate, deserted trees,
The faded earth, the heavy sky,
The beauties she so truly sees,
She thinks I have no eye for these,
And vexes me for reason why.

Not yesterday I learned to know
The love of bare November days
Before the coming of the snow,
But it were vain to tell her so,
And they are better for her praise.

                     -Robert Frost

PHOTOS OF THE DAY

Japanese macaques (Snow Monkeys) hold each other while sitting on rocks near a hot spring in a valley in Yamanouchi town, Nagano prefecture, Japan, Monday. Yuya Shino/Reuters

Grumpy Cat arrives to ride in the 84th Annual Hollywood Christmas Parade in Los Angeles Sunday. David McNew/Reuters

Market Closes for November 30^th, 2015

MarketIndex	Close	Change
DowJones	17719.92	-78.57  -0.44%
S&P 500	2080.41	-9.70  -0.46%
NASDAQ	5108.668	-18.856  -0.37%
TSX	13469.83	+101.59
		+0.76%

International Markets

MarketIndex	Close	Change
NIKKEI	19747.47	-136.47
		-0.69%
HANGSENG	21996.42	-71.90
		-0.33%
SENSEX	26145.67	+17.47
		+0.07%
FTSE 100	6356.09	-19.06
		-0.30%

Bonds

Bonds	% Yield	Previous  % Yield
CND.10 Year Bond	1.570	1.571
CND.30 Year Bond	2.286	2.292
U.S.   10 Year Bond	2.2078	2.2201
U.S.30 Year Bond	2.9746	2.9968

Currencies

BOC Close	Today	Previous
Canadian $	0.74842	0.74786
US$	1.33615	1.33715
Euro Rate1 Euro=		Inverse
Canadian $	1.41153	0.70845
US$	1.05642	0.94660

Commodities

Gold	Close	Previous
London GoldFix	1061.90	1057.40
Oil	Close	Previous
WTI Crude Future	41.65	41.71

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks rose, trimming their sixth monthly loss in seven, as commodities producers advanced with gold increasing for the first time in three sessions and the nation’s largest banks rose ahead of fourth-quarter earnings.

     Energy stocks advanced 1.3 percent, recovering from an Oct. 2 low, while raw-materials producers increased 2.4 percent to lead equities higher. Gold futures for February delivery gained 0.9 percent in New York, the first advance since Nov. 24.

     Crude futures settled little changed after rallying as much as 2 percent in New York, capping an 11 percent drop in November. Iran expects no major decisions that would change OPEC’s output target when the group gathers Dec. 4 in Vienna.

     A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices, leading energy and raw-materials producers lower for the year. The two groups, which account for about 30 percent of the index, lost more than 1.2 percent in November to extend declines in 2015 past 20 percent.

     The Standard & Poor’s/TSX Composite Index rose 101.59 points, or 0.8 percent, to 13,469.83 at 4 p.m. in Toronto. The benchmark equity gauge retreated 0.4 percent in November. It has dropped 8 percent this year, trailed only by Singapore and Greece among developed markets. 

     Canada’s current account deficit narrowed to C$16.2 billion in the third quarter, the smallest this year, as merchandise exports jumped. Canada’s weaker dollar, constrained by the drop in oil prices, has given a lift to exporters. The loonie, as the currency is known, has dropped 13 percent this year.

     Royal Bank of Canada increased 1.1 percent, the most in two weeks, and Bank of Montreal rose 0.6 percent to lead lenders higher. Bank of Montreal and Bank of Nova Scotia report fourth- quarter earnings tomorrow.

     BlackBerrry Ltd. rose 2 percent after the company said it’s shuttering its Pakistan operations to avoid allowing authorities in the nation to monitor its main business enterprise server and e-mail messages. There are as many as 5,000 BES customers in Pakistan, the Dawn newspaper reported in July.

     Canadian Oil Sands Ltd. rose 2.8 percent, rebounding from the worst loss in almost two months. Suncor Energy Inc. said Nov. 26 it may scrap its $4.5 billion hostile bid for the company if Alberta regulators endorse a poison pill that would give the target company more time to find other bidders.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks trimmed monthly gains, with the Standard & Poor’s 500 Index clinging to a slim November increase, as investors prepared for policy decisions from central banks while awaiting a slew of economic data this week.

     The S&P 500 advanced this month as signs of a strengthening U.S. economy offset concerns that the Federal Reserve intends to raise interest rates this year, throttling back on stimulus that has underpinned the 6 1/2 year equities bull market. The rising prospects for tighter monetary policy boosted financial shares to a 1.7 percent gain in November, while utility stocks tumbled 2.8 percent as their dividend yields lose luster as bond rates rise.

     The S&P 500 Index fell 0.5 percent to 2,080.41 at 4 p.m. in New York, paring its November climb to 0.05 percent while capping its first consecutive monthly gains since May. The Dow Jones Industrial Average slipped 78.57 points, or 0.4 percent, to 17,719.92, and the Nasdaq Composite Index lost 0.4 percent. About 7.7 billion shares traded hands on U.S. exchanges, 8.3 percent above the 30-day average.

     “This is a fairly big week between the ECB Thursday and the jobs number on Friday,” Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC, said by phone. “The market is looking for a rate hike by the Fed in December and further easing by the ECB, so these are going to be a pivotal two weeks to set us up through the end of the year.”

     As investors look for further confirmation that the economy is sturdy enough to handle higher borrowing costs, data today showed contract signings to purchase previously owned U.S. homes rose less than forecast in October, showing residential real estate is cooling heading into the quieter selling season. Other reports this week include manufacturing data tomorrow and the monthly government jobs report on Friday.

     Federal Reserve Chair Janet Yellen will speak to Congress on Thursday and the European Central Bank will hold its last policy meeting of the year amid growing speculation the ECB will take additional steps to boost inflation. OPEC members will also meet to discuss oil production.

     The S&P 500 has rebounded about 12 percent from its low in August as concern eased that a slowdown in China would spread. Fed policy makers have signaled the economy is strong enough to withstand the first U.S. interest-rate increase since 2006, and traders are pricing in a 72 percent chance that the central bank will act at the conclusion of its two-day meeting on December 16.

     The U.S. benchmark stock index closed the month 2.4 percent away from its record reached in May while alternating between gains and losses over the last ten sessions, the longest such streak since 2013. Meanwhile, the Russell 2000 Index of small- cap shares snapped its longest rally since March after reaching a three-month high Friday. The gauge rose 3.1 percent this month after rallying 5.6 percent in October.

     The Chicago Board Options Exchange Volatility Index rose 6.7 percent Monday to 16.13. The measure of market turbulence known as the VIX finished November up 7 percent, its first monthly increase since August.

     Energy stocks rose the most among ten primary groups in the benchmark gauge Monday. That shaved their November decline, though the sector is still headed toward the sixth loss in seven months. Oil is set to average below $50 for a fourth month, the longest stretch since the global financial crisis, as a record supply glut showed no signs of ending. Southwestern Energy Co. climbed 3.1 percent, with the shares still off more than 18 percent this month.

     Pressure on brick-and-mortar retailers this month hasn’t let up following the Black Friday weekend. More than 103 million people shopped online over the four-day weekend, which started Thursday on Thanksgiving, according to an annual survey commissioned by the National Retail Federation. That compares with fewer than 102 million who ventured into traditional stores, the trade group said.                       

     Fossil Group Inc., Macy’s Inc. and Urban Outfitters Inc. were each down more than 21 percent in November, among the biggest drops in the S&P 500 and their worst such declines in at least three years after posting quarterly results that disappointed investors. Those companies added to their losses on Monday, with each sliding at least 1.5 percent.

     Under Armour Inc. had its largest monthly retreat since April 2014. The athletic-wear maker’s shares lost 3.9 percent today after Piper Jaffray Cos. cut its earnings estimates, saying it remains “one of the more promotional brands” in athletic space.

     Health-care companies erased a November increase in the month’s final session as a selloff in biotechnology shares led the group lower. The Nasdaq Biotechnology Index sank 1.9 percent today, while still marking its second straight monthly gain. Mylan NV and Illumina Inc. rose more than 16 percent in November, while Celgene Corp. slid 11 percent to lead declines.

     Industrial companies posted their first back-to-back monthly gains this year, helped by speculation on railroad mergers as Canadian Pacific Railway Ltd. made a $28 billion offer to buy Norfolk Southern Corp. earlier this month. Kansas City Southern was up almost 10 percent in November, while CSX Corp. gained 5.3 percent.

     Deal activity also helped boost raw-material shares in November, as the S&P 500’s best-performer this month — Airgas Inc. — soared after agreeing to be acquired by France’s Air Liquide SA for about $13.4 billion. Alcoa Inc. added 4.8 percent this month as activist investor Elliott Management Corp. disclosed a 6.4 percent stake in the aluminum company.

     Semiconductors added to the strongest monthly advance among 24 industry groups in the benchmark index, rising 0.9 percent Monday to take November’s increase to 3.9 percent. Qorvo Inc. rose 32 percent this month, pacing the advance after posting better-than-estimated earnings and announcing plans to buy back $1 billion in stock. Applied Materials Inc. and Nvidia Corp. each climbed nearly 12 percent this month.

 

Have a wonderful evening everyone.

 

Be magnificent!

Watching and listening are a great art.

By watching and listening we learn infinitely more than we do from any books.

Books are necessary, but watching and listening sharpen your senses.

Krishnamurti

As ever,

 

Carolann

 

Whatever you are, be a good one.

      -Abraham Lincoln, 1809-1865

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Sinclair Oil’s green Dino float proceeds high above spectators along 6th Ave during the 89th Macy’s Thanksgiving Day Parade in the Manhattan borough of New York Thursday. Carlo Allegri/Reuters

The buildings around the Grand Place are illuminated during the opening of the Christmas Market in Brussels, Belgium, Friday. Brussels lowered its terror alert from four to three. Michael Probst/AP

Market Closes for November 27^th, 2015

Market Index	Close	Change
Dow Jones	17798.49	-14.90   -0.08%
S&P 500	2090.11	+1.24   +0.06%
NASDAQ	5127.524	+11.382   +0.22%
TSX	13368.24	-56.95
		-0.42%

International Markets

Market Index	Close	Change
NIKKEI	19883.94	-60.47
		-0.30%
HANG SENG	22068.32	-420.62
		-1.87%
SENSEX	26128.20	+169.57
		+0.65%
FTSE 100	6375.15	-17.98
		-0.28%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.571	1.565
CND. 30 Year Bond	2.292	2.281
U.S.    10 Year Bond	2.2201	2.2341
U.S. 30 Year Bond	2.9968	2.9944

Currencies

BOC Close	Today	Previous
Canadian $	0.74786	0.75235
US $	1.33715	1.32917
Euro Rate 1 Euro=		Inverse
Canadian $	1.41646	0.70598
US $	1.05932	0.94401

Commodities

Gold	Close	Previous
London Gold Fix	1057.40	1071.00
Oil	Close	Previous
WTI Crude Future	41.71	41.79

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, capping a weekly loss, as raw-materials producers retreated with gold prices tumbling to a five-year low amid increasing bets the Federal Reserve will raise interest rates next month.

     The Canadian equity market, one of the worst-performing in the world this year amid a slump in commodities prices, is poised to beat its U.S. peers for the first time since 2010 next year as investors have gotten overly pessimistic, according to BMO Capital Markets Chief Investment Strategist Brian Belski.

     “Canada is down, but not out,” Belski said in a 2016 market outlook report to clients Nov. 25. “The recovery we expected in the fourth quarter has only been delayed and is one of the main reasons we believe Canada will be a surprise outperformer in 2016. Any positive news stemming from emerging markets, Europe and commodity prices will likely be a strong positive tailwind for Canadian stocks.”

     The Standard & Poor’s/TSX Composite Index fell 56.95 points, or 0.4 percent, to 13,368.24 at 4 p.m. in Toronto. It has dropped 8.6 percent this year, trailed only by Singapore and Greece among developed markets. 

     Belski forecasts the S&P/TSX to close 2016 at 15,300, a 14 percent increase from current levels. Most global managers are now “grossly underweight” Canadian equities, he said.

     “The ‘Eeyore’ market continues, as most Canadian-centric investors continue to focus on the doom-and-gloom trade while dictating their investment conclusions with fear and emotion,” Belski said.

     Energy and raw-materials producers, along with health-care stocks, have fallen at least 22 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Fed as soon as December have crimped commodities prices.

     Barrick Gold Corp. and Goldcorp Inc. dropped at least 2.6 percent as raw-materials producers lost 2.1 percent as a group, the most in the benchmark equity gauge. Gold futures fell 1.3 percent to settle at $1,056.20 an ounce in New York. Gold posted its sixth straight week of losses, the longest such run in two years.

     Canadian Oil Sands Ltd. retreated 5.6 percent for the worst loss in almost two months. Suncor Energy Inc. yesterday said it may scrap its $4.5 billion hostile bid for the company if Alberta regulators endorse a poison pill that would give the target company more time to find other bidders. Oil producers tumbled 1.3 percent as crude futures fell 3.1 percent in New York, paring a weekly advance.

US

By Anna-Louise Jackson

     (Bloomberg) — The year’s strongest week for U.S. equities was followed by one of its quietest, with energy stocks underpinning microscopic gains in a holiday-shortened week.

     Stocks moved the smallest amount since July as the Thanksgiving holiday damped trading following the previous week’s 3.3 percent surge in the Standard & Poor’s 500 Index. Mixed economic results and geopolitical unrest did little to sway equities ahead of next week’s jobs report and a Federal Reserve meeting scheduled to conclude on Dec. 16.

     The S&P 500 rose 0.04 percent in the 3 1/2 days to 2,090.11, its eighth gain in nine weeks. The gauge closed 1.9 percent below its May peak and, with one day left in November, is up 0.5 percent for the month after rallying 8.3 percent in October. The Russell 2000 Index surged 2.3 percent for the week to close at its highest level since Aug. 19.

     Volume was light as investors honed their focus on the future of monetary policy in the U.S., said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management, which oversees $27 billion. “The market continues to come to peace with the idea that the Fed will do its first increase in mid-December.”

     Compared with where they were leading up to the last Fed meeting in October, equities are in a much improved state. At the start of that month, the S&P 500 was still down 8.6 percent from its August high, while the Chicago Board Options Exchange Volatility Index was at 22.55. Three weeks ahead of the forthcoming meeting, shares in the benchmark gauge are back in the range they were trading weeks before the correction started and the VIX has retreated back to 15.12, just above its pre- selloff average of 14.9.

     Still, it’s not like investors have made up their minds about the future. The S&P 500 has alternated gains and losses over the last nine straight sessions, the longest such streak since 2013.

     Companies with a heavier domestic revenue stream are the likeliest to do well amid economic reports that show positive U.S. growth — or at the very least, “numbers that aren’t near as bad,” said Tom Stringfellow, president and chief investment officer of San Antonio-based Frost Investment Advisors LLC, which manages about $11 billion. “What’s really getting a bid right now are those companies that are less impacted by dollar strength overseas.”

     Economic reports showed mixed results. Orders for U.S. business equipment climbed more than forecast in October, indicating steady domestic demand is encouraging corporate investment even as global sales waver. Meanwhile, consumers are benefiting from accelerating income gains, though that didn’t translate to higher household spending or confidence measures.

     The week’s economic data didn’t change the course of a potential rate hike and “the market’s waiting for what the Fed’s actually going to do,” said Bob Baur, chief global economist at Principal Global Investors in Des Moines, Iowa. The firm oversees $333 billion. It’s also taking a breather because October’s “huge rebound might’ve been a little too much, too fast,” he said.

     The probability of a boost to interest rates in next month’s meeting is 72 percent, according to fed fund futures. Amid more certainty about the timing, “the only thing that might change it is if we have a hugely discouraging jobs report,” Baur said. And even that doesn’t seem very likely given the decline in initial unemployment claims.

     Similarly, the market was unfazed by renewed concerns about geopolitical tensions after a Russian warplane was downed by Turkish forces. Meanwhile, Pfizer Inc.’s $160 billion megadeal with Allergan Plc was met by a cool reception. Allergan rose 2.3 percent on the week while Pfizer increased 1.9 percent.

     Higher oil prices helped to spur a 1.3 percent gain for energy stocks, capping a second consecutive week of gains. Meanwhile, consumer-staples stocks rose each day of trading to close at the highest level in more than three weeks. Utility stocks, the week’s biggest laggard, fell 1.6 percent.

     A volatility measure fell for a second consecutive week. The Chicago Board Options Exchange Volatility Index has tumbled more than 60 percent after spiking to the highest in almost four years during the S&P 500’s summer swoon. Investors may need to brace for higher volatility ahead of the Fed’s meeting.

     “We still will see volatility, particularly because there’s a lot of lead-up to the Fed meeting,” said Tom Anderson, who helps oversee about $8 billion as chief investment officer at Boston Private Wealth. “We’ll likely have choppiness over the coming weeks.”

 

Have a wonderful weekend everyone.

 

Be magnificent!

“In order to succeed, we must first believe that we can.” Nikos Kazantzakis

 

 

As ever,

 

Karen
 

 

“Always do your best. What you plant now, you will harvest later.” Og Mandino

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A winter storm clears at sunset over Interstate 80 near Baxter, Calif., Wednesday. Max Whittaker/Reuters

Workers collect customer orders during Black Friday deals week at an Amazon fulfilment center in Hemel Hempstead, Britain, Wednesday.Neil Hall/Reuters

Market Closes for November 26^th, 2015

MarketIndex	Close	Change
DowJones	17813.39	Closed
S&P 500	2088.87	Closed
NASDAQ	5116.143	Closed
TSX	13420.94	+17.52
		+0.13%

International Markets

MarketIndex	Close	Change
NIKKEI	19944.41	+96.83
		+0.49%
HANGSENG	22488.94	-9.06
		-0.04%
SENSEX	25958.63	+182.89
		+0.71%
FTSE 100	6393.13	+55.49
		+0.88%

Bonds

Bonds	% Yield	Previous  % Yield
CND.10 Year Bond	1.565	1.591
CND.30 Year Bond	2.281	2.296
U.S.   10 Year Bond	2.2341	2.2377
U.S.30 Year Bond	2.9944	3.0024

Currencies

BOC Close	Today	Previous
Canadian $	0.75235	0.75168
US$	1.32917	1.33036
Euro Rate1 Euro=		Inverse
Canadian $	1.40986	0.70929
US$	1.06071	0.94277

Commodities

Gold	Close	Previous
London GoldFix	1071.00	1068.00
Oil	Close	Previous
WTI Crude Future	41.79	41.79

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose in light trading as raw-materials producers rallied with industrial metals on news China is considering measures to support slumping prices, overshadowing a drop in energy shares after crude halted a three-day gain.

     Copper producer First Quantum Minerals Ltd. added 6.4 percent as raw-materials producers climbed 1.1 percent, offsetting a 0.6 percent retreat in oil producers. European markets rose as the MSCI All-Country World Index of developed and developing markets advanced a second day. U.S. markets are closed for the Thanksgiving holiday.

     Zinc and copper led an advance in base metals as China weighed state purchases, output cuts and a probe into short- selling in an effort to stem the rout in commodities prices this year. The country’s largest copper and nickel suppliers plan to meet this week to weigh their response to declines, according to people with knowledge of the matter. The London Metal Exchange’s index of six industrial metals is heading for its biggest annual decline since the global financial crisis.

     Crude futures fell for the first time this week, declining 1.2 percent in New York after advancing 6.6 percent the previous three days as figures showed this week that U.S. stockpiles are increasing to near a record, countering signs drilling is slowing.

     The Standard & Poor’s/TSX Composite Index rose 21.77 points, or 0.2 percent, to 13,425.19 at 4 p.m. in Toronto on trading volume 64 percent lower than the 30-day average. It has dropped 8.3 percent this year, trailed only by Singapore and Greece among developed markets. 

     Energy and raw-materials producers, along with health-care stocks, have fallen at least 21 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.

     Canadian Oil Sands Ltd. fell 0.9 percent, erasing an earlier gain after Suncor Energy Inc. said in a regulatory filing there was a “real” chance it won’t extend its $4.5 billion bid for the company if the deadline is extended. Canadian Oil Sands yesterday said it has met with one potential rival bidder and has plans to do the same with at least three others in coming weeks.

     Valeant Pharmaceuticals International Inc. increased 2.2 percent, halting a three-day retreat. Shares of the embattled drugmaker declined yesterday after a hedge fund long bearish on Valeant published a new list of pharmacies it said were probably tied to the company. Valeant said the allegations contained “significant inaccuracies.”

     Briefly the largest company in Canada by market capitalization this year, Valeant has plunged 66 percent from an Aug. 5 high amid scrutiny by investors, lawmakers and regulators over its pricing practices.

     Jean Coutu Group Inc. tumbled 8.4 percent, the most in seven years, after the Quebec government introduced a bill that would open up a bidding system for the manufacture of generic drugs in the province, potentially cutting profit at the firm. Jean Coutu operates retail pharmacies and makes generic drugs through its Pro Doc Ltd. unit.

US

Markets are closed today.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Logic will get you from A to B. Imagination will take you everywhere.” Albert Einstein

 

 

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

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY 

A man stops to look at a frozen handrail as he walks his dogs along the coastline in Dalian, Liaoning province, China, Wednesday. Reuters

Santa Claus, from the Macy’s Thanksgiving Day Parade, visits the trading floor of the New York Stock Exchange before the opening bell Wednesday. Richard Drew/AP

Market Closes for November 25^th, 2015

Market Index	Close	Change
Dow Jones	17813.39	+1.20   +0.01%
S&P 500	2088.87	-0.27   -0.01%
NASDAQ	5116.143	+13.334   +0.26%
TSX	13403.42	-4.41
		-0.03%

International Markets

Market Index	Close	Change
NIKKEI	19847.58	-77.31
		-0.39%
HANG SENG	22498.00	-89.63
		-0.40%
SENSEX	25775.74	-43.60
		-0.17%
FTSE 100	6337.64	+60.41
		+0.96%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.591	1.616
CND. 30 Year Bond	2.296	2.322
U.S.    10 Year Bond	2.2341	2.2377
U.S. 30 Year Bond	2.9944	3.0024

Currencies

BOC Close	Today	Previous
Canadian $	0.75209	0.75168
US $	1.32962	1.33036
Euro Rate 1 Euro=		Inverse
Canadian $	1.41222	0.70811
US $	1.06212	0.94151

Commodities

Gold	Close	Previous
London Gold Fix	1068.00	1076.40
Oil	Close	Previous
WTI Crude Future	41.79	41.27

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little changed as a rebound in Valeant Pharmaceuticals International Inc. fizzled in afternoon trading, offsetting gains in consumer shares and Bombardier Inc.

     Consumer-staples companies advanced 1.4 percent. Alimentation Couche-Tard Inc. added 1.7 percent to a record after the gas-bar and convenience store retailer raised its dividend and posted second-quarter earnings ahead of estimates yesterday. George Weston Ltd., parent of supermarket chain Loblaw Cos., jumped 2.9 percent, bringing its two-day gain to 4.2 percent, the most in a year.

     The Standard & Poor’s/TSX Composite Index fell 4.41 points, or less than 0.1 percent, to 13,403.42 at 4 p.m. in Toronto. The index was up as much has 0.6 percent earlier in the day. It has dropped 8.4 percent this year, trailed only by Singapore and Greece among developed markets. 

     Valeant retreated 0.9 percent, after surging as much as 3.3 percent to recover from a loss of 5 percent early in the day. Sydney-based Bronte Capital in a blog posting identified 78 pharmacies with names alluding to chess moves or to Stephen King novels it claims are probably tied to the drugmaker. The hedge fund has a short-selling position against Valeant that would let it profit on the stock’s decline, the company confirmed in an e- mail.

     Briefly the largest company in Canada by market capitalization this year, Valeant has plunged 67 percent from an Aug. 5 all-time high amid scrutiny over its drug pricing practices and relationship with mail-order pharmacies such as Philidor RX Services, first highlighted by short-seller Andrew Left’s Citron Research.

     Activist investor Bill Ackman has been a staunch backer of the company, increasing his fund’s stake in Valeant to 9.9 percent, from 5.7 percent as of Sept. 30, in a series of transactions starting in October, according to a Monday regulatory filing. Ackman also defended Valeant at length in a marathon conference call Oct. 30.

     Oil producers fell 0.7 percent, halting a two-day advance, after a government report showed that U.S. crude, gasoline and distillate fuel stockpiles increased.

     Energy and raw-materials producers, along with health-care stocks, have fallen at least 21 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.

     Bombardier jumped 12 percent, the most in seven weeks, after a three-day decline brought it to the lowest level in almost three months. While profit and sales could fall next year, recent investments from within the company’s home province of Quebec have improved liquidity and buoyed the outlook for aircraft-development programs, Bombardier said Tuesday at its annual investor day in New York.

US

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — Most U.S. stocks rose in light trading, while bonds fluctuated as signs Russia won’t escalate tensions after the downing of its warplane saw investors to shift their attention to evidence the American economy is robust enough to withstand higher interest rates.

     The Russell 2000 Index of small-cap equities led gains, while the Standard & Poor’s 500 Index meandered amid below- average volumes ahead of Thursday’s Thanksgiving holiday in the U.S. The dollar strengthened as orders data added to the picture of a stabilization in manufacturing, even as consumer spending climbed less than was forecast. The euro slipped to a seven- month low on bets regional policy makers will bolster stimulus, while crude oil rose above $43 a barrel. Brazilian assets tumbled as a graft scandal widened.

     U.S. and German leaders called for an easing of tensions a day after Turkey’s downing of the Russian jet threatened to escalate the conflict in Syria, unsettling financial markets. In the U.S., the biggest part of the economy is off to a slow start to the holiday season, adding an element of doubt as to the strength of the economic recovery even as goods orders pick up. Speculation is mounting that the Federal Reserve will boost interest rates before the year is out, just as the European Central Bank increases stimulus.

     “Consumers are in pretty good shape, but continue to be relatively conservative in how they’re spending money,” said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management, which oversees $27 billion. “It’s a typical mixed bag of economic news. It will be a light trading day.”

     The S&P 500 fell less than 0.1 percent to 2,088.87 as of 4 p.m. in New York, capping its third straight move of less than 0.2 percent following its best weekly advance this year. Trading in S&P 500 stocks was 31 percent below the 30-day average. The Russell 200 jumped 0.8 percent to its highest level since Nov. 6.

     Energy shares trimmed earlier declines after U.S. government data showed crude-oil stockpiles rose less than analysts forecast. Pfizer Inc. climbed 2.8 percent to lead health-care companies’ advance. Macy’s Inc. gained 1.9 percent and travel-related companies rebounded to pace an increase among consumer discretionary companies.

     The Stoxx Europe 600 Index rose 1.4 percent, as travel and leisure stocks rebounded from the biggest drop since September. Abengoa SA’s bonds and stock tumbled to records after the embattled renewable-energy company said it was seeking preliminary protection from creditors. Banco Santander SA, Spain’s largest bank, and Banco Popular Espanol SA, the sixth- biggest, dropped more than 2 percent.

     The MSCI Asia Pacific Index slipped 0.5 percent Wednesday, led by losses in Japan and Australia.

     Yields on the benchmark U.S. 10-year note fell one basis point, or 0.01 percentage point, to 2.23 percent. The yield touched 2.2 percent Tuesday, the lowest level since Nov. 4. U.S. bond markets are shut Thursday for the holiday and open for a partial session Nov. 27.

     The yield difference between two- and 10-year Treasuries shrank to the narrowest since February amid lackluster inflation and as bets on a December rate hike from the Fed hold above 70 percent.

     Euro-area government bonds advanced on bets economic stimulus will be expanded before the year is out. ECB Vice President Vitor Constancio fueled that speculation, saying risks to the euro-area economy are to the downside in a Bloomberg TV interview Wednesday.

     Germany’s two-year note yields slipped to a record alongside those of peers including Spain and Belgium. Yields were negative on German bonds with maturities out as far as seven years on Wednesday.

     The Bloomberg Dollar Spot Index, a gauge of the greenback versus 10 major peers, rose 0.1 percent following a 0.3 percent retreat last session. The euro fell 0.2 percent to $1.0619, nearing the $1.0458 level reached on March 16, its weakest since January 2003. The currency dropped 0.1 percent to 130.32 yen on Wednesday.

     Central bank policy makers including ECB President Mario Draghi have said they will do whatever is required to ward off deflation before their Dec. 3 meeting. Any move by the Fed to raise rates in December would dim the allure of the 19-nation currency versus the greenback.

     The Ibovespa stock gauge sank 2.9 percent, the most since Oct. 13, while the Brazilian currency dropped 1.2 percent, the most among 16 major currencies tracked by Bloomberg. Billionaire Andre Esteves, who transformed Grupo BTG Pactual into the largest independent investment bank in the region, was detained Wednesday, sending shares of the lender down a record 21 percent. Delcidio Amaral, the leader of the government coalition in the Senate, was also held.

     Brazil’s equity market has lost about a third of its value since March 2014, when a widening probe into a pay-to-play scheme between an alleged cartel of builders and state-run oil producer Petroleo Brasileiro SA left President Dilma Rousseff fighting for her political survival. The lack of support from Congress had the government struggling to approve measures that could shore up the nation’s finances, seeing Brazil ousted from a group of investment-grade countries in September.

     Bank Itau Unibanco Holding SA and Petrobras led Ibovespa losses, while Brazil’s $4.3 billion in bonds due 2025 fell the most in three weeks.

     Russia’s ruble declined for the third time in four days and Turkey’s lira dropped to a two-week low as Russia ratcheted up criticism of Turkey for shooting down the warplane on Tuesday. Chinese shares rallied amid speculation state intervention to stabilize the market is working, with the Shanghai Composite Index up 0.9 percent amid losses throughout the region.

     West Texas Intermediate crude climbed 0.4 percent to $43.04 a barrel after earlier retreating back below $42. Crude had gained more than 6 percent over the previous two trading sessions. The U.S. report showed that crude, gasoline and distillate fuel stockpiles increased last week.

     Gold fell to near a five-year low as investors focused on data showing an increase in U.S. orders for business equipment and a drop in jobless claims, boosting speculation over the Fed’s action on rates. Higher borrowing costs damp the metal’s appeal as a store of value.

     Copper, zinc and aluminum traded near their lowest levels in six years, and nickel has slumped this week to the least in more than a decade. Iron ore has taken a fresh beating, with prices sinking to the lowest level in six years as output cuts at Chinese mills hurt demand while low-cost supplies from the biggest miners expand.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“What is the difference between an obstacle and an opportunity? Our attitude toward it. Every opportunity has a difficulty, and every difficulty has an opportunity.” 
― J. Sidlow Baxter 

 

As ever,

 

Karen
 

“A warm smile is the universal language of kindness.” William Arthur Ward

 

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Kazakh herdsmen drive their sheep and goats through snow-covered fields in Guozigou valley in Yili, Xinjiang Uighur Autonomous Region, China. China Daily/Reuters

The sun rises behind the Lower Manhattan skyline, seen from The Heights neighborhood of Jersey City, N.J., Tuesday. Julio Cortez/AP

Market Closes for November 24^th, 2015

Market Index	Close	Change
Dow Jones	17812.19	+19.51   +0.11%
S&P 500	2089.14	+2.55   +0.12%
NASDAQ	5102.809	+0.331   +0.01%
TSX	13407.83	+25.45
		+0.19%

International Markets

Market Index	Close	Change
NIKKEI	19924.89	+45.08
		+0.23%
HANG SENG	22587.63	-78.27
		-0.35%
SENSEX	25775.74	-43.60
		-0.17%
FTSE 100	6277.23	-28.26
		-0.45%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.616	1.617
CND. 30 Year Bond	2.322	2.328
U.S.    10 Year Bond	2.2377	2.2482
U.S. 30 Year Bond	3.0024	3.0032

Currencies

BOC Close	Today	Previous
Canadian $	0.75168	0.74828
US $	1.33036	1.33641
Euro Rate 1 Euro=		Inverse
Canadian $	1.41629	0.70607
US $	1.06459	0.93933

Commodities

Gold	Close	Previous
London Gold Fix	1076.40	1070.50
Oil	Close	Previous
WTI Crude Future	41.27	39.98

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for the first time in three days, as commodities producers jumped with the price of oil after Turkey’s downing of a Russian warplane near the Syrian border sparked concern of supply interruptions.

     Equities also got a boost after a Kremlin spokesman said Russia’s response won’t include the military, fueling speculation any fallout from the incident will be contained. Resource producers advanced at least 1.4 percent in Canada to lead equities higher.

     Turkey’s action near the border with northwestern Syria marked the first direct clash between the foreign powers embroiled in the civil war and sparked selling in global equities in morning trading. Canada’s resource-rich equity market rose as crude rallied on speculation supplies from the Middle East may be disrupted.

     Bombardier Inc. fell 4.8 percent after predicting a decline in profit next year. Royal Bank of Canada slipped 0.3 percent to lead lenders lower. Crew Energy Inc. and Ecnana Corp. jumped at least 6.3 percent.

     The Standard & Poor’s/TSX Composite Index rose 25.45 points, or 0.2 percent, to 13,407.83 at 4 p.m. in Toronto. The index has pared declines for the year to 8.4 percent, trailed only by Singapore and Greece among developed markets. 

     Russian President Putin accused Turkey of being an accomplice of terrorism and warned of “very serious consequences” for their relations. The escalating tension in the region comes with Brussels on the highest-level terror alert and after the U.S. State Department issued a global alert for Americans.

     Raw-materials and energy producers, which account for almost 30 percent of Canada’s benchmark stock index, were two of the three industries among 10 in the S&P/TSX to advance. Consumer staples stocks added 0.3 percent after Alimentation Couche-Tard Inc. posted second-quarter earnings ahead of estimates and boosted its dividend.

     Encana jumped 6.5 percent and Cenovus Energy Inc. added 1.7 percent as energy producers rallied 1.5 percent as a group. West Texas Intermediate touched a high of $43.46 with volume of all futures traded 18 percent higher than the 100-day average.

     Energy and raw-materials producers, along with health-care stocks, have fallen at least 20 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.

     Bombardier fell for a third day of losses. The struggling planemaker predicted a drop in 2016 earnings at its annual investor day in New York amid lower output of its biggest current business jets and costs from the oft-delayed C Series airliner.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks erased early losses as investors shook off concerns over the downing of a Russian warplane by Turkish forces, and energy shares rallied for their first back- to-back gains in three weeks.

     Commodity companies led a rebound, with raw-materials joining energy to rise the most among the S&P 500’s main groups. Airlines slumped along with travel-related shares after a government warning to American travelers abroad coupled with a jump in crude prices.

     The Standard & Poor’s 500 Index rose 0.1 percent to 2,089.14 at 4 p.m. in New York, after earlier falling as much as 0.8 percent. The gauge has gone without two straight winning sessions since Nov. 3. The Dow Jones Industrial Average erased a 109-point slide to rise 19.51 points, or 0.1 percent, to 17,812.19. The Nasdaq Composite Index was little changed. About 6.9 billion shares traded hands on U.S. exchanges, 6.8 percent below the three-month average.

     “When you see this type of uncertainty happening, it reinforces looking at the U.S. as a safe haven,” said Tom Anderson, who helps oversee about $8 billion as chief investment officer at Boston Private Wealth. “The U.S. economy is in very solid shape. We’re pretty positive on equities as a result. But there’s certain to be noise and volatility around those events.”

     Turkey shot down the Russian warplane near the border with northwestern Syria, drawing an angry rebuke from President Vladimir Putin and marking the first direct clash between foreign powers embroiled in the civil war. He said Russia “won’t tolerate such crimes” but stopped short of threatening any military response against Turkey, which is a member of the North Atlantic Treaty Organization, warning only of “serious consequences” for bilateral ties.

     While global financial markets were jolted by concerns that the situation could escalate, political analysts in Russia and Europe said that seemed unlikely given the risks associated with any conflict between Russia and a NATO member. The incident comes with Brussels on the highest-level terror alert and after the U.S. State Department issued a global alert for Americans.

     The geopolitical tensions overshadowed data today that showed the economy expanded at a faster pace in the third quarter than previously reported, bolstering the Federal Reserve’s case for raising borrowing costs for the first time since 2006. Traders are now pricing in a 74 percent probability that the Fed will increase interest rates next month.

     A separate report showed home prices climbed more than estimated in September compared to a year earlier, signaling residential real estate is sustaining momentum. Another gauge showed consumer confidence unexpectedly fell in November to the lowest since September 2014.

     Stocks struggled to add to an advance following the S&P 500’s strongest weekly gain this year, with the gauge little changed from its Friday close. The benchmark is 2 percent away from its May record after rallying 12 percent from a summer swoon and its first correction in four years.

     The Chicago Board Options Exchange Volatility Index rose 2 percent Tuesday to 15.93, trimming an earlier 10 percent rise. The measure of market turbulence known as the VIX fell 23 percent last week, the most since July.

     Six of the S&P 500’s 10 main industries advanced, with energy and raw-material companies up the most. Financial, utility and industrial companies were the worst performers.

     Energy stocks rose for second day, up 2.2 percent on higher oil prices. Marathon Oil Corp. and Chesapeake Energy Corp. added more than 5.5 percent, while Pioneer Natural Resources Co. rose to a five-month high. Exxon Mobil Corp. advanced 2 percent.

     Among raw materials, Newmont Mining Corp. gained 2.5 percent as gold rose for the first time in three sessions amid demand for haven assets. Steelmaker Nucor Corp. climbed 3.7 percent after analysts at BB&T Corp. rated the shares a buy. Miner Freeport-McMoRan Inc. added 3.8 percent for its first climb in four sessions as copper rallied.

     Analog Devices Inc. rallied 6.4 percent to lead semiconductors in the benchmark index higher after the chipmaker posted better-than-expected earnings. Avago Technologies Ltd. and Skyworks Solutions Inc. gained more than 2.5 percent.

     Dollar Tree Inc.’s better-than-expected earnings propelled the shares up 6.6 percent to the highest since 2013. Keurig Green Mountain Inc. and Campbell Soup Co. rose more than 3 percent, though the broader consumer-staples group was little changed. Campbell gained after forecasting full-year profit above analysts’ estimates, even as it trimmed its sales outlook.

     A group of homebuilding stocks rose 1.4 percent to the highest level in two months on better-than-expected increases in home prices in September. D.R. Horton Inc., the largest U.S. homebuilder, advanced 1.5 percent to a level last seen in 2006.

     Consumer-discretionary stocks fell amid a slump in travel- related companies. Priceline Group Inc., Expedia Inc. and TripAdvisor Inc. retreated more than 1.9 percent, while cruise operators Royal Caribbean Cruises Ltd. and Carnival Corp. also sank at least 1.9 percent.

     Similarly, shares of industrial companies were weighed by a selloff in airline operators. The Bloomberg U.S. Airlines Index slumped 2.7 percent, its biggest decline in seven weeks, as United Continental Holdings Inc. and Delta Air Lines Inc. fell at least 3 percent.

     Outside of the travel companies among consumer shares, Signet Jewelers Ltd. declined 4.1 percent, the most since February 2014. Its quarterly results missed analysts’ estimates and its outlook fell short of some forecasts.

     Three of the Internet’s biggest names — Google parent Alphabet Inc., Amazon.com Inc. and Facebook Inc. — fell at least 0.9 percent. Those shares, along with Priceline and a 1.4 percent drop in Netflix Inc., dragged the Nasdaq Internet Index down 0.9 percent after it closed yesterday at a record.

     Financial shares fell for a second day, with real-estate companies among the worst performers in the group. Mall owner Simon Property Group Inc. lost 2 percent. SL Green Realty Corp. and AvalonBay Communities Inc. slipped more than 1.1 percent.

     The earnings season is drawing to a close, with almost all members of the gauge having reported. Of those, 74 percent beat profit estimates, while only 44 percent exceeded sales forecasts. Analysts project profits for index members fell 3.8 percent in the third quarter, compared with expectations for a 7.2 percent drop at the start of the season.

 

Have a wonderful evening everyone.

 

Be magnificent!

 “Dictionary is the only place that success comes before work. Hard work is the price we must pay for success. I think you can accomplish anything if you’re willing to pay the price.” Vince Lombardi

 

As ever,

 

Karen
 

 “The starting point of all achievement is desire.” Napoleon Hill

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

People visit the Christmas market on Alexanderplatz on opening day in Berlin Monday. Traditional Christmas markets will run until the end of December. Hannibal Hanschke/Reuters

A view of one of the Petronas Towers is seen from a window of its twin building during the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur, Malaysia, Sunday. Jorge Silva/Reuters

Market Closes for November 23^rd, 2015

Market Index	Close	Change
Dow Jones	17792.81	-31.00   -0.17%
S&P 500	2086.54	-2.63   -0.13%
NASDAQ	5102.477	-2.442   -0.05%
TSX	13378.15	-55.34
		-0.41%

International Markets

Market Index	Close	Change
NIKKEI	19879.81	+20.00
		+0.10%
HANG SENG	22665.90	-88.82
		-0.39%
SENSEX	25819.34	-49.15
		-0.19%
FTSE 100	6305.49	-29.14
		-0.46%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.617	1.622
CND. 30 Year Bond	2.328	2.327
U.S.    10 Year Bond	2.2482	2.2605
U.S. 30 Year Bond	3.0032	3.0175

Currencies

BOC Close	Today	Previous
Canadian $	0.74828	0.74902
US $	1.33641	1.33508
Euro Rate 1 Euro=		Inverse
Canadian $	1.42133	0.70357
US $	1.06355	0.94024

Commodities

Gold	Close	Previous
London Gold Fix	1070.50	1081.75
Oil	Close	Previous
WTI Crude Future	39.98	40.39

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, erasing early gains as Valeant Pharmaceuticals International Inc. slumped, overshadowing an advance in energy producers after Alberta unveiled a revamped climate change policy and Saudi Arabia said it’s ready to work to stabilize global oil markets.

     Equities fell 0.4 percent in afternoon trading, erasing an advance of as much as 0.6 percent in the morning. Valeant lost 3.4 percent, reversing an earlier 7.7 percent rally and snapping a three-day advance. The embattled drugmaker has tumbled 66 percent from an Aug. 5 record amid scrutiny over its pricing practices.

     The Standard & Poor’s/TSX Composite Index fell 51.11 points to 13,382.38 at 4 p.m. in Toronto. The S&P/TSX added 2.7 percent last week, the most since Oct. 9. The index has pared declines for the year to 8.5 percent, trailed only by Singapore and Greece among developed markets. 

     Royal Bank of Canada and Bank of Nova Scotia slipped at least 0.7 percent to lead lenders lower. Industrial shares dropped 1 percent as a group, as Canadian Pacific Railway Ltd. lost 1.1 percent to snap a five-day gain. Canadian Pacific jumped 9.8 percent last week after going public with its pursuit of Norfolk Southern Corp.

     Alberta provided greater clarity for energy companies operating in the province, saying it will cap oil-sands emissions for producers such as Suncor Energy Inc. and Imperial Oil Ltd., implement an economy-wide price for carbon and phase out coal power plants.

     TransAlta Corp., an electricity generator in Calgary, soared 9.5 percent for the biggest advance in two years. Analysts at RBC Capital raised the stock to “sector perform,” the equivalent of a neutral rating, in part due to clarity from the release of Alberta’s climate change framework.

     “It is now certain that coal-fired generation will be phased out by 2030,” TransAlta Chief Executive Dawn Farrell said in a statement Nov. 22. The company is reviewing the new policy to assess how it will impact TransAlta’s business and strategy, the release said.

     West Texas Intermediate traded near $42 a barrel after Saudi Arabia repeated that it’s willing to work with OPEC and other producers. The Organization of Petroleum Exporting Countries is due to meet Dec. 4. Oil has slumped about 45 percent over the past year.

     Energy and raw-materials producers, along with health-care stocks, have dropped at least 21 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.

     First Quantum Minerals Ltd. sank 5.8 percent. Copper fell below $4,500 a metric ton for the first time in six years and nickel touched the lowest in more than a decade.

US

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks slipped following the Standard & Poor’s 500 Index’s best weekly rally this year, as gains in consumer companies were overshadowed by a retreat in Allergan Plc and Pfizer Inc. amid their record $160 billion merger deal.

     Allergan and Pfizer slipped more than 2.6 percent. Electronic Arts Inc. fell 4.8 percent as GameStop Inc. said sales of the video-game maker’s Star Wars: Battlefront were weaker than expected. Tyson Foods Inc. gained 10 percent after boosting its dividend and its profit outlook was better than some analysts expected. Kellogg Co. rallied the most in almost a year after an analyst upgrade.

     The S&P 500 fell 0.1 percent to 2,086.59 at 4 p.m. in New York, after rising 3.3 percent last week, the most since December. The Dow Jones Industrial Average lost 31.13 points, or 0.2 percent, to 17,792.68. The Nasdaq Composite Index declined 0.1 percent. The Russell 2000 Index increased 0.4 percent, bolstered by gains in health-care and consumer discretionary shares. About 6.2 billion shares traded hands on U.S. exchanges 17 percent below the three-month average.

     “There are more reasons than usual to sit on your hands during Thanksgiving week,” said Matt Maley, an equity strategist at Miller Tabak & Co LLC in New York. “It’s a combination of a lack of positive reaction in the oil market to help oil rally and concerns a little bit about Brussels. With stuff going on in Europe, people are asking, ‘Do I really need to step to the plate after a 3 percent rally last week?’”

     Stocks earlier extended declines as concerns over terrorism intensified after AFP reported an explosive belt was found in a trash bin in a Paris suburb. The search for a key suspect in the Paris terror attacks kept Brussels in an unprecedented lockdown that brought business to a standstill.

     The main U.S. equity gauge surged last week after Federal Reserve officials signaled the economy is strong enough to withstand the first rate increase since 2006, and investors grew more comfortable with the notion that borrowing costs may soon be higher. Stocks have gained in seven of the past eight weeks, boosted by raw-material, industrial and technology shares, taking the S&P 500 to within 2 percent of a record set in May.

     San Francisco Fed President John Williams said on Saturday there’s a “strong case” for a rate increase in December assuming U.S. economic data continues to be encouraging. Fed Governor Daniel Tarullo said today in an interview on Bloomberg Television economic data received since the central bank met in September had been mixed, as continued low inflation tempered his enthusiasm over progress made this year in lowering unemployment.

     “As always with the Fed, we see Fed governors speak on both sides,” said Tim Ghriskey, who helps oversee $1.5 billion as managing director and chief investment officer at Solaris Asset Management. “It’s a way for them to calm the markets and get the markets used to any potential outcome. Eventually the Fed’s going to raise and it’s very likely to be somewhere in the near- term.”

     A report today showed sales of previously owned homes retreated in October from the second-highest level since 2007 as lean inventory limited momentum in residential real estate. Recent data have bolstered the case for raising borrowing costs for the first time since 2006, with traders now pricing in a 72 percent probability that the Fed will move next month. The Commerce Department’s second reading on gross domestic product for the third quarter is due tomorrow.

     The earnings season is drawing to a close, with almost all companies in the S&P 500 having reported. Of those, 75 percent beat earnings estimates, while only 44 percent exceeded sales forecasts. Analysts project profits for index members dropped 3.8 percent in the third quarter, compared with for a 7.2 percent decline at the start of the season.

     Six of the S&P 500’s 10 main industries declined Monday, led by utilities, phone and technology companies. Consumer- staples and commodity shares rose the most. The Chicago Board Options Exchange Volatility Index climbed 1 percent to 15.62. The measure of market turbulence know as the VIX slid 23 percent last week, the most since July.

     Technology shares were the biggest drag on the S&P 500. Hewlett-Packard Enterprises Co., the corporate technology business recently separated from the printer and PC operation that’s now HP Inc., fell 2.5 percent following a 7.3 percent jump over the three previous sessions. Maxim Group started coverage of the company today with a hold rating. Hewlett- Packard and HP report results tomorrow after the market closes.

     Apple Inc. sank 1.3 percent, its first drop in four days. Video-game maker Electronic Arts Inc. fell 4.8 percent, as demand for “Star Wars Battlefront” fell short of expectations. Analog Devices Inc. slumped 4.4 percent, leading semiconductors lower before its quarterly earnings report tomorrow morning.

     GameStop Corp. slid 4.2 percent, after falling more than 15 percent earlier. The company reported third-quarter earnings and sales Monday that missed analysts estimates.

     Transportation stocks fell, with the Dow Jones Transportation Average declining for the first time in six days, down 0.9 percent. A group of railroad companies tumbled 2.1 percent, the most in almost a month, with all four members slipping more than 1.8 percent.

     Raw-material stocks rose today, led by a 4.4 percent rally in Alcoa Inc. Billionaire Paul Singer’s Elliott Management Corp. announced it bought a stake in the largest U.S. aluminum producer, an endorsement of Alcoa’s plans to split into two companies. CF Industries Holdings Inc. gained 2.5 percent after the company said it’s committed to acquiring fertilizer assets from OCI NV.

     Tyson Foods’ surge led the 0.8 percent gain for consumer- staples shares. Kellogg Co. jumped 3.5 percent, the most in almost a year, after Credit Suisse Group AG raised its recommendation to outperform from neutral. Constellation Brands Inc. and Archer-Daniels-Midland Co. also advanced more than 2.4 percent.

     Energy stocks advanced as oil prices swung between gains and losses. Cimarex Energy Co., Tesoro Corp. and Anadarko Petroleum Corp. rose at least 2.7 percent, while Chevron Corp. added 1.1 percent. The group is rebounding after a two-day, 2.3 percent retreat. Oil fluctuated on Saudi Arabia’s repeated pledge to work with OPEC and other producers to stabilize global crude markets. The December crude futures contract expired Friday after falling to the lowest since Aug. 26.

     Retailers in the benchmark increased for the fifth time in six days, extending gains after their best weekly climb in almost four years. Macy’s Inc. and Nordstrom Inc., which earlier this month had their worst weekly selloffs since 2008, rose more than 1.4 percent. Amazon.com Inc. added 1.6 percent to close at an all-time high.

     Biotechnology companies rose amid Allergan’s combination with Pfizer. Biogen Inc. and Amgen Inc. climbed more than 1.4 percent to lead the Nasdaq Biotechnology Index’s 0.7 percent increase, with the gauge rising for the first time in three sessions. Mallinckrodt Plc surged 8.4 percent after posting earnings that topped estimates.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Meditate.
Live purely. Be quiet.
Do your work with mastery.
Like the moon, come out 
from behind the clouds!
Shine” 
― Gautama Buddha

 

As ever,

 

Karen
 

“The past is behind, learn from it. The future is ahead, prepare for it. The present is here, live it.”  ― Thomas S. Monson

 

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