Category: Events

Dear Friends,

Tangents:

David Gilmour is on tour in the new year and I bought some tickets for one of his concerts scheduled for next March.  When I got home last night, I found a package from TicketMaster that contained his latest CD,RATTLE THAT LOCK.  It’s very good, both the music and the lyrics; Gilmour wrote the music and most of the lyrics were written by Polly Samson.

I like the words in the title track, Rattle That Lock:
Whatever it takes to break
Got to do it
From the Burning Lake
Or the Eastern Gate
You’ll get through it
Rattle that lock and lose those chains…

Let’s go do it
Have it all our way
Go back to where we blew it
And lose our heads along the way
So long Sin, au revoir Chaos
If there’s a Heaven it can wait…

And all the other travelers
Become phantoms to our eyes
The furies and the revelers
The fallen angels in disguise
No Discord, chance or Rumour
Is going to interrupt this bliss…

So let’s get to it
It’s calling like a flame
Through the darkness and the night
A world suspended on a golden chain
No Discord, Chance or Rumour
Is going to interrupt this bliss…

PHOTOS OF THE DAY

A rainbow forms after a passing rain shower near Grants, New Mexico, Monday. Lucas Jackson/Reuters

A surfer bails out of a wave in Cow Bay, Nova Scotia, Canada. on Tuesday. The waves are remnants of hurricane Joaquin which missed the province as it tracked far offshore out into the Atlantic. Andrew Vaughan/The Canadian Press/AP

 

The Dutch cargo ship Flinterstar sinks off of the Belgian coast near Zeebrugge, Belgium on Tuesday. The Dutch-registered cargo ship sank off the Belgian coast after colliding with a gas tanker early Tuesday morning. The VBZR is a government approved search and rescue organization run entirely by volunteers. VBZR Vrijwillige Blankenbergse Zee Reddingsdienst/AP

Market Closes for October 6^th, 2015

Market Index	Close	Change
Dow Jones	16790.19	+13.76   +0.08%
S&P 500	1979.09	-7.96   -0.40%
NASDAQ	4748.359	-32.905   -0.69%
TSX	13657.89	+105.69
		+0.78%

International Markets

Market Index	Close	Change
NIKKEI	18186.10	+180.61
		+1.00%
HANG SENG	21831.62	-22.88
		-0.10%
SENSEX	26932.88	+147.33
		+0.55%
FTSE 100	6326.16	+27.24
		+0.43%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.425	1.440
CND. 30 Year Bond	2.221	2.227
U.S.    10 Year Bond	2.0333	2.0526
U.S. 30 Year Bond	2.8733	2.8937

Currencies

BOC Close	Today	Previous
Canadian $	0.76720	0.76374
US $	1.30345	1.30934
Euro Rate 1 Euro=		Inverse
Canadian $	1.46949	0.68051
US $	1.12738	0.88701

Commodities

Gold	Close	Previous
London Gold Fix	1147.50	1139.75
Oil	Close	Previous
WTI Crude Future	48.53	46.26

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

                                                                     -Woody Allen

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for a third day, the longest streak in three weeks, as commodities producers extended a rally after the price of metals and oil jumped.

     Makers of energy and raw materials led a 0.7 percent increase in Canadian equities. Crude in New York rose to the highest in a month, while copper capped its longest winning streak in two weeks. Resources have gained as the U.S. dollar slips amid speculation interest rates will remain low for longer. While commodities producers have rallied at least 10 percent since Sept. 28, they remain the index’s biggest drag this year with losses of more than 16 percent.

     The Standard & Poor’s/TSX Composite Index rose 95.06 points to 13,647.26 at 4 p.m. in Toronto, extending a Sept. 21 high. The benchmark Canadian equity gauge has climbed 3.1 percent in three days, rebounding from a 4 percent slump in September. The index has lagged global peers among developed markets this year with a 6.7 percent decline.

     Canada’s merchandise trade deficit widened in August as exports fell 3.6 percent, including a 20.9 percent drop in crude oil and bitumen. The deficit expanded to C$2.53 billion ($1.93 billion) from July, exceeding the most bearish forecasts, according to Statistics Canada Tuesday from Ottawa.

     Commodities producers have rallied as the U.S. dollar has weakened on bets the Federal Reserve will delay raising interest rates. The Bloomberg Dollar Spot Index slipped 0.6 percent for a fourth straight decline, the longest streak since Aug. 24.

     Barrick Gold Corp. rallied 6.1 percent and Yamana Gold Inc. increased 8.9 percent. Gold for December delivery climbed 0.8 percent to settle at $1,146.40 an ounce in New York. The price has advanced for three sessions, the longest rally in six weeks. Higher interest rates curb the demand for gold, which doesn’t pay interest and is seen as an alternative investment.

     Chemical products company Canexus Corp. soared 25 percent, a record, after agreeing to sell itself to Superior Plus Corp. in an all-share deal that implies a 48 percent premium from yesterday’s close. Superior lost 5.9 percent, the most since July 23.

     First Quantum Minerals Ltd. jumped 21 percent after announcing plans to cut net debt by greater than C$1 billion through asset sales and other moves. The company also lowered its production forecasts for 2015 to 385,000 to 410,000 tonnes from a July 29 estimate of 410,000 to 440,000 tonnes. First Quantum has surged 53 percent in three days, the most since 2009.

     Bombardier Inc. soared 15 percent, the most in almost a month, after Reuters reported the planemaker had approached Airbus Group SE about acquiring a majority stake in the company’s struggling CSeries jetliner.

US

By Dani Burger and Kate Garber

     (Bloomberg) — A selloff in biotechnology shares dragged the Nasdaq Composite Index lower as equities retreated after nearing their highest levels since the August selloff.

     The Standard & Poor’s 500 Index ended its longest winning streak this year, after surging yesterday near where an advance faltered at the end of August, and another rally ran out of steam after the Federal Reserve stood pat on interest rates last month. The Nasdaq Biotechnology Index tumbled 3.8 percent, while energy and raw-materials shares rose as investors continued to favor the beaten-down sectors.

     The S&P 500 fell 0.4 percent to 1,979.92 at 4 p.m. in New York, after reaching a two-week high Monday. The Dow Jones Industrial Average gained 13.76 points, or 0.1 percent, to 16,790.19. DuPont Co. jumped 7.7 percent to add 26 points to the Dow after its chief executive, Ellen Krullman, said she intends to retire.The Nasdaq Composite sank 0.7 percent.

     “The market is catching its breath after strong run over the past several days,” said Alan Gayle, senior strategist for Atlanta-based Ridgeworth Investments, which has about $42.5 billion in assets. “The important thing for me is the market tried to test the August lows and we saw a rebound from there.”

     The S&P 500 ended a five-day advance that had restored almost $700 billion to U.S. equity prices, as expectations for a Federal Reserve interest-rate increase were pushed out into next year. That sent the dollar lower and has boosted energy, raw- material and industrial shares amid speculation that a weaker U.S. currency will lift profits for multinational companies which benefit when their overseas earnings are converted back to dollars.

     Among the S&P 500’s 10 main groups, raw-materials and energy shares extended their rally to a sixth day Tuesday, the longest for energy since December 2013. Health-care fell the most as biotechs retreated after earnings warnings from companies that sell technology to drug firms and concern about pharmaceutical pricing reignited selling that began three weeks ago. Technology, industrial and phone companies were little changed.

     “You’re right at the cusp of the highest closing level since we crashed in August,” said Jim Paulsen, the Minneapolis- based chief investment strategist at Wells Capital Management Inc., which oversees $351 billion. “All that is good technically, but one bad thing is leadership. The main leader, health-care, has been AWOL in this rally. That’s probably not a good sign that this is a sustainable rally.”                      

     Health-care companies fell for the first time in six sessions, with Biogen Inc., Celgene Corp. and Vertex Pharmaceuticals Inc. losing more than 3.6 percent. The Nasdaq Biotech Index dropped for a second day and has slumped 15 percent since Democratic presidential candidate Hillary Clinton criticized“price gouging” in the industry two weeks ago. Pfizer Inc. declined 2.1 percent after climbing 8.6 percent in the prior five days.

     A rally in commodities boosted raw-materials and energy shares as the dollar continued to slide. Oil surged 4.9 percent to the highest level in a month amid speculation that falling crude production will ease the global supply glut. Chevron Corp. jumped 3.5 percent to a two-month high. Transocean Ltd. added 7.2 percent for its best three-day rally ever, up 26 percent.

     DuPont led gains among raw-material companies in the benchmark index amid its biggest advance since 2009. Freeport- McMoRan Inc. rose 5.8 percent. The miner abruptly revamped its board and said it’s considering spinning off its oil and natural gas business, weeks after Carl Icahn disclosed a stake. Alcoa Inc. increased 5.5 percent and is up more than 18 percent in three days, the most in six years.

     A slowdown in emerging markets driven by weak commodity prices forced the International Monetary Fund to cut its outlook for global growth this year to 3.1 percent from a July forecast of 3.3 percent. Next year the world economy will expand 3.6 percent, less than the 3.8 percent projected in July, the fund predicted.

     The Chicago Board Options Volatility Index slipped 0.7 percent Tuesday to 19.40, and is down 30 percent after six days of declines. The measure of market turbulence known as the VIX yesterday closed below 20 for the first time since Aug. 20. About 7.7 billion shares traded hands on U.S. exchanges, 4.6 percent above the three-month average.

     Day-to-day swings in U.S. equities have abated in the last week, providing some respite from turbulence fueled by concerns about slowing global growth and uncertainty over the Fed’s course of action on rates. After disappointing payrolls data on Friday, traders are now pricing in 33 percent odds of a Fed rate liftoff in December, and a 57 percent chance in March.

     While China’s slowdown and Fed policy have had the heaviest influence on investor sentiment lately, corporate profits will begin to grab more attention. Alcoa unofficially kicks off the reporting season after markets close Oct. 8. Analysts project earnings for S&P 500 members dropped 6.9 percent in the third quarter.

     Among other shares moving on corporate news, Skyworks Solutions Inc. sank 1.4 percent, trimming an earlier 9 percent drop, after agreeing to buy PMC-Sierra Inc. for $2 billion in cash. The chipmaker joins Dialog Semiconductor Plc., Intel Corp. and Avago Technologies Ltd. in buying industry colleagues in the past year. Avago slid 3.4 percent today while Intel gained 1.7 percent. PMC-Sierra jumped 33 percent to a nine-year high.

     PepsiCo. climbed 1.3 percent to a six-week high after its third-quarter profit topped analysts’ estimates. The company also raised its forecast for the year as North American snack and beverage sales climbed, helped by higher prices.

     A Bloomberg index of U.S. airlines fell 4.4 percent, the steepest slide since May amid speculation on higher fuel prices as oil rallied. Alaska Air Group Inc. and American Airlines Group Inc. declined more than 5.1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

The human voice can never reach the distance

that is covered by the still small voice of conscience.

Mahatma Gandhi

As ever,

 

Carolann

 

Feet, what do I need you for when I have wings to fly?

                                        -Frida Kahlo, 1907-1954

 

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 Oct. 5, 2011, Apple co-founder Steve Jobs dies of complications from pancreatic cancer.  The movie Steve Jobs opens this week; people who were closest to him, including his wife, have apparently panned it as it supposedly describes him as insensitive and cruel.

Long-time Vancouver restaurateur Umberto Menghi, reopened Il Giardino a few months ago and we finally had  a chance to go on Saturday night.  Its on Hornby Street still but a different location.  The old Il Giardinowas opened for an astonishing 37 years before Umberto decided to shut it down 2 years ago.   We consoled ourselves by making his cannelloni out of the recipe book he published.  The new restaurant is Tuscan in style like its predecessor and has a lovely garden area in which to dine like the old Il Giardino.  And like the old one, it was humming with diners on Saturday night – packed.   Several of the old waiters have returned and Umberto was there on Saturday night greeting the patrons – very wonderful and nostalgic.  It is no doubt  destined to be one of Vancouver’s favorites again.

I took my Mom to the new Nordstrom’s in Vancouver yesterday to buy some new sweaters  – pretty nice store!  Great wine bar on the second floor, and we were joined by a few family members for lunch in their third floor restaurant.  The food was excellent and the views over Robson Street and Robson Square make for interesting people watching. 

 
On October 5, 1947, in the first televised White House address, President Truman asked Americans to refrain from eating meat on Tuesdays and poultry on Thursdays to help stockpile grain for starving people in Europe.

PHOTOS OF THE DAY

Shepherd Ben Blackmore stands with his sheep dog and flock of Exmoor Horn sheep in Savile Row, London, Britain on Monday. The Campaign for Wool marked the beginning of Britain’s national Wool Week on Monday, on one of London’s most renowned streets. Peter Nicholls/Reuters

People watch the sun set from the observatory deck of the Marina Bay Sands hotel in Singapore on Monday. The 3-hour haze Pollutant Standards Index (PSI) reached a high of 186 at 4pm on Monday, according to the National Environment Agency. Slash-and-burn agriculture in neighboring Indonesia has blanketed Singapore in a choking haze for weeks. Edgar Su/Reuters

Market Closes for October 5^th, 2015

Market Index	Close	Change
Dow Jones	16776.43	+304.06   +1.85%
S&P 500	1988.04	+36.68   +1.88%
NASDAQ	4781.266	+73.491   +1.56%
TSX	13563.17	+223.43
		+1.67%

International Markets

Market Index	Close	Change
NIKKEI	18005.49	+280.36
		+1.58%
HANG SENG	21854.50	+348.41
		+1.62%
SENSEX	26785.55	+564.60
		+2.15%
FTSE 100	6298.92	+168.94
		+2.76%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.440	1.400
CND. 30 Year Bond	2.227	2.186
U.S.    10 Year Bond	2.0526	1.9929
U.S. 30 Year Bond	2.8937	2.8274

Currencies

BOC Close	Today	Previous
Canadian $	0.76374	0.76019
US $	1.30934	1.31546
Euro Rate 1 Euro=		Inverse
Canadian $	1.46430	0.68292
US $	1.11835	0.89418

Commodities

Gold	Close	Previous
London Gold Fix	1139.75	1140.75
Oil	Close	Previous
WTI Crude Future	46.26	45.54

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — A rally in commodities from copper to oil sent Canadian stocks to a two-week high.

     Energy and raw-materials producers led a 1.6 percent gain in Canadian equities. Copper advanced a second day, while crude climbed past $46 a barrel in New York, lifting Canada’s resource-heavy benchmark index.

     The Standard & Poor’s/TSX Composite Index rose 212.46 points to 13,552.20 at 4 p.m. in Toronto, capping a Sept. 21 high. Canada joined a global rally in equities, as a weaker U.S. dollar spurred gains in commodities and emerging-nation assets.

     A disappointing U.S. jobs report last week fueled bets the Federal Reserve will keep interest rates pinned near zero into 2016. That prospect of continued stimulus boosted demand for risk assets such as commodities.

     Canada was among a dozen Pacific-rim that nations agreed to a historic pact that would cut trade barriers on items ranging from cars to rice. The Trans-Pacific Partnership, more than five years in the making, is designed to boost commerce among nations that produce 40 percent of global economic output.

     Teck Resources Ltd. jumped 9.6 percent and First Quantum Minerals Ltd. increased 18 percent to lead mining shares higher. Copper for delivery in three months gained 1.5 percent in London. Aluminum and tin also advanced.

     Canadian Oil Sands Ltd. surged a record 55 percent after Suncor Energy Inc. made an unsolicited offer to buy the company in an all-share deal for about C$4.3 billion. Under terms of the offer, Canadian Oil Sands shareholders would receive a quarter of a Suncor share, worth about C$8.84 a share based on Suncor’s closing price on Friday.

     Energy producers soared 4.6 percent as a group, the most in five weeks. MEG Energy Corp. surged 2 percent and Penn West Petroleum Ltd. rallied 22 percent as oil extended gains a second day after the number of rigs drilling in the U.S. slumped to a five-year low. Baytex Energy Corp. jumped 9.7 percent and Canadian Natural Resources Ltd. gained 8.1 percent.

     Potash Corp. of Saskatchewan Inc. increased 1.7 percent after the company walked away from its 7.85 billion-euro proposal to acquire German fertilizer producer K+S AG. Potash Corp. said significant declines in commodity and equity markets as well as a lack of engagement from K+S management led to the decision.

US

By Roxana Zega and Dani Burger

     (Bloomberg) — U.S. stocks climbed, with the Standard & Poor’s 500 Index posting its longest winning streak this year, on speculation that the worst has been priced into shares and growth in the economy will be strong enough to support corporate profits.

     Equities rallied as companies that benefit from a weaker dollar climbed. Disappointing employment data Friday pushed out expectations for an interest-rate increase by the Federal Reserve, sending the dollar lower which helps boost American multinational companies’ profits when their overseas earnings are converted back to the U.S. currency.

     Investors continued to target equities hardest hit during the third quarter, which was the worst for stocks since 2011. Energy companies in the S&P 500 added to their rebound from an 18 percent quarterly drop. Alcoa Inc. and Dow Chemical Co. gained at least 4.1 percent Monday to pace a climb in raw- materials. The Dow Jones Industrial Average reached a six-week high.

     “Pushing out interest rate hike expectations to next year has been critical,” said Michael Purves, chief global strategist at Weeden & Co in Greenwich, Connecticut. “Today is simply a response to oversold conditions.”

     The S&P 500 rose 1.8 percent to 1,987.05 at 4 p.m. in New York, and is up 5.6 percent since last Monday’s close. The Dow climbed 304.06 points, or 1.9 percent, to 16,776.43. The Russell 2000 Index increased 2.5 percent, the most in more than a month, and is 5.3 percent higher since ending its longest losing streak in nine years last week.

     Equities have see-sawed between gains and losses since August’s selloff, as investors wrestle with concerns about a slowing global economy and confusion over the Fed’s rate plans. The S&P 500 rallied 6.8 percent from its August low into last month’s Fed meeting, and then fell in seven of the next eight sessions before finishing the quarter down 6.9 percent.

     The odds of a Fed liftoff on rates this month have fallen to 10 percent since the weaker payroll report, and most futures traders don’t see an increase from near zero until at least March. The chance for a January increase was priced at about 45 percent, down from 52 percent before the September jobs report.

     Chances of a Fed rate increase aren’t the only things falling. After the S&P 500 plunged 10 percent in four days in August for the first correction since 2011, 12 of the 21 strategists surveyed by Bloomberg cut their year-end forecasts. The average prediction has dropped 4.1 percent to 2,142 since Aug. 10.

     To get to analysts’ average estimate, the S&P 500 would have to rally more than 7.8 percent between now and the end of the year. Such an advance during that period wouldn’t be a far cry from the average 6.4 percent rally that occurred over that stretch since 2009.

     Attention will shift to earnings this week, as investors look for further insight on how slowing global growth is affecting U.S. companies. Alcoa unofficially kicks off the latest reporting season after the markets close on Oct. 8.

     Analysts project earnings for S&P 500 members dropped 6.9 percent in the third quarter. Still, a Fed measure of corporate income has posted its biggest quarterly increase since 2012, suggesting the overall picture for profits may be skewed by downgrades at energy producers combating weak oil prices.

     Energy shares were among the strongest performers in the S&P 500’s 10 main industries Monday, rising 2.9 percent. Raw- material, industrial and phone companies added at least 2.6 percent. Health-care lagged as biotechnology shares slipped, with the Nasdaq Biotechnology Index down for the first time in four days.

     The Chicago Board Options Volatility Index fell 6.7 percent Monday to 19.54 amid its longest stretch of declines since July. The gauge known as the VIX closed below 20 for the first time since Aug. 20, ending its lengthiest run above that level since 2012. About 7.9 billion shares changed hands on U.S. exchanges, 7 percent above the three-month average.

     “Those people that wanted to sell have already sold by now, and now the market is coming up,” said Otto Waser, chief investment officer at R&A Research & Asset Management AG in Zurich. “Given the current market reaction, the correction seems to be over. The market should stabilize and either rally now or in the first quarter of next year. We’re looking at a very modest pace of rate increases anyway.”                     

     General Electric Co. rose 5.3 percent to a two-month high, helping to boost industrials after Nelson Peltz’s Trian Fund Management LP acquired a $2.5 billion stake in the company. “We invested in GE because it is undervalued and under-appreciated by the market despite what we believe is a transformation that will allow its world-class industrial businesses to drive attractive shareowner returns,” Peltz said in the statement.

     Consol Energy Inc., the worst-performer in the S&P 500 this year, climbed 9 percent to rank among today’s leaders in the benchmark index. Chesapeake Energy Corp. added 6.7 percent to trim its decline this year to 57 percent, the second-biggest drop within the energy group in 2015. Oil rose for a second day after the number of rigs drilling in the U.S. slumped to a five- year low, continuing a slowdown in crude production that promises to reduce a global glut.

     Capital-goods companies in the S&P 500 are up 6.7 percent since reaching an almost two-year low last Monday. United Rentals Inc. jumped 8 percent to lead the group, its biggest gain since July 2013. Deere & Co. rose 6.3 percent, the most in more than four years. Members of the United Auto Workers ratified a new six-year labor agreement with Deere.

     Endo International Plc lost 5.3 percent to weigh on the Nasdaq Biotech Index, after a three-day rally pushed shares up
17 percent. Incyte Corp. retreated 5.5 percent after soaring 33 percent over four days last week.

 

Have a wonderful evening everyone.

 

Be magnificent!

In Sanskrit, one calls the bird twice born.

And this name is also given to the man who submits for at least twelve years

to the discipline of mastering his self and the  noble thought, who emerges from it with simple needs,

with a pure heart, and ready to take upon himself all the responsibilities of life

in a broad and disinterested spirit.  One estimates that this man is born again from the blind envelopment

of the ego to the freedom of the life of the soul,

that he has entered into lively connection with his environment,

that he has become one with the Whole.

Rabindranath Tagore

As ever,

 

Carolann

 

The only sin is mediocrity.

   -Martha Graham, 1894-1991

 

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 1950, the comic strip “Peanuts” debuted.

Mahatma Gandi was born in 1869.

Author Graham Greene was born in 1904.

Sting was born in 1951.Redwood national Park was established in 1968.

PHOTOS OF THE DAY

Guests stand at the entrance of the venue for Dior fashion house Spring/Summer 2016 women’s ready-to-wear collection show in the Cour Carre at the Louvre Museum during Paris Fashion Week Friday. Charles Platiau/Reuters

A Red deer stag barks, with a female seen behind, in the morning sun in Richmond Park in west London Friday. The Royal Park has had Red and Fallow deer since 1529. The rutting or breeding season begins in early autumn amongst the herd of more than six hundred animals. Toby Melville/Reuters

Market Closes for October 2^nd, 2015

Market Index	Close	Change
Dow Jones	16472.37	+200.36   +1.23%
S&P 500	1951.36	+27.54   +1.43%
NASDAQ	4707.773	+80.689   +1.74%
TSX	13339.74	+97.85
		+0.74%

International Markets

Market Index	Close	Change
NIKKEI	17725.13	+2.71
		+0.02%
HANG SENG	21506.09	+659.79
		+3.17%
SENSEX	26220.95	+66.12
		+0.25%
FTSE 100	6129.98	+57.51
		+0.95%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.400	1.431
CND. 30 Year Bond	2.186	2.204
U.S.    10 Year Bond	1.9929	2.0403
U.S. 30 Year Bond	2.8274	2.8515

Currencies

BOC Close	Today	Previous
Canadian $	0.76019	0.75404
US $	1.31546	1.32619
Euro Rate 1 Euro=		Inverse
Canadian $	1.47473	0.67809
US $	1.12108	0.89200

Commodities

Gold	Close	Previous
London Gold Fix	1140.75	1119.00
Oil	Close	Previous
WTI Crude Future	45.54	44.74

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rebounded from a 1.2 percent slide sparked by a disappointing U.S. jobs report as gold producers surged with the metal on speculation the Federal Reserve will keep rates lower for longer.

     Equities in Canada rose 0.7 percent, joining a rebound in global markets as a weakening dollar sparked a rally in commodities. A gauge of developed and developing markets rose 1.2 percent, reversing earlier losses. Banks and financial services providers tumbled as the rate on 10-year bonds retreated.

     The Standard & Poor’s/TSX Composite Index rose 97.85 points to 13,339.74 at 4 pm. in Toronto, after reaching an October 2013 low on Monday. The gauge tumbled 8.6 percent in the quarter that ended Wednesday and has slumped 14 percent from an April peak.

     The U.S. jobs report heightened concern that slowing global growth and recent financial-market turmoil is seeping into the American economy. The data pushed back expectations for the first interest-rate increase from the Federal Reserve in almost a decade until at least March.

     “The continued validity or helpfulness of zero rates is in question, yet we still aren’t getting great growth so it’s challenging,” said Jason Brady, a fund manager at Thornburg Investment Management Inc. based in Santa Fe, New Mexico. His firm manages about $60 billion.

     Gold stocks rallied 7.6 percent to the highest since Aug. 28 as the price of the metal surged 2.1 percent in New York. Goldcorp Inc. soared 6.3 percent and Agnico Eagle Mines Ltd. jumped 12 percent as all 21 members in the S&P/TSX Gold Index advanced. Teck Resources Ltd. surged 11 percent as copper futures advanced.

     Encana Corp. jumped 7.6 percent and Crescent Point Energy Corp. gained 6.9 percent. Oil surged after U.S. explorers reduced the number of rigs drilling for oil to a five-year low.

     Banks led a 1.2 percent retreat in financials stocks. Royal Bank of Canada lost 2.2 percent as a gauge of the nation’s largest lenders retreated 2.1 percent.

     National Bank of Canada slumped 5.3 percent, the most since December 2009, after the lender said it will take a C$64 million restructuring charge in the fourth quarter and sell about 7 million shares to raise C$300 million. The lender will cut as many as 400 jobs, or 2.3 percent of its workforce, as it seeks to cut costs, according to a person familiar with the plan.

     Canadian equities are among the worst-performing markets in the developed world this year with a 8.8 percent slide, led by declines among raw-materials and energy producers of at least 23 percent.

US

By Dani Burger and Anna-Louise Jackson

     (Bloomberg) — The Standard & Poor’s 500 Index posted its longest winning streak since July amid a rally led by energy and raw-material companies, as investors reassessed the economic impact from a weaker-than-expected jobs report.

     The Dow Jones Industrial Average wiped out a 258-point drop as Pfizer Inc. and Chevron Corp. climbed more than 3.8 percent, while Caterpillar Inc. added 2 percent. The profitability of those companies benefits from a weaker dollar, which slid today as investors pushed out expectations for higher interest rates. Commodity shares, also sensitive to moves in the dollar, were higher as Freeport-McMoRan Inc. and Dow Chemical Co. gained more than 3.4 percent.

     The S&P 500 Index rose 1.4 percent to 1,951.36 at 4 p.m. in New York, wiping out an earlier drop of as much as 1.6 percent in its biggest intraday rebound since October 2011. The Dow climbed 200.36 points, or 1.2 percent, to 16,472.37. The gauge spanned 459 points from its session high to low. The Nasdaq Composite Index increased 1.7 percent. About 8.3 billion shares traded hands on U.S. exchanges, 14 percent above the three-month average.

     “While it was a big disappointment, I don’t think it changes the overall picture,” said Kate Warne, an investment strategist at Edward Jones in St. Louis. “I wouldn’t peg one jobs report, even with previous revisions, as stemming improvements out there. But it’s obviously going to take longer, and the choppier path and more erratic data is likely to occur as the economy works through the rough patch.”                       

     Data today showed employers added a lower-than-projected 142,000 workers to payrolls in September. The jobless rate held at a seven-year-low 5.1 percent as people left the labor force, wages stagnated and revisions cut the job count in prior months.

     The weak report vindicates the Federal Reserve’s decision to delay an interest-rate increase last month. Cooling overseas markets, a stronger dollar and lower oil prices that are hampering exports and manufacturing raise the risk that employers will hesitate before taking on more staff.

     Fed officials have previously suggested the economy is strong enough for higher rates this year, despite their hesitation to raise borrowing costs last month amid global market turmoil and weakness in China. Traders now are pricing in about a 34 percent chance the central bank will raise rates this year, down from about 45 percent prior to the jobs report. Odds they will be higher in January fell to 40 percent from 52 percent earlier.

     “The rate increase definitely got pushed back as a result, and that takes away a continued strengthening of the dollar,” said Walter “Bucky” Hellwig, who helps manage $17 billion as a senior vice president at BB&T Wealth Management in Birmingham, Alabama. “Weak dollar beneficiaries are starting to rise.” The weaker dollar boosts American multinational companies’ profits when their overseas earnings are converted back to the U.S. currency.

     St. Louis Fed President James Bullard said in a speech today that the central bank would still provide “considerable” accommodation to guard against “pitfalls and risks.” Separately, Fed Vice Chairman Stanley Fischer said he doesn’t see immediate risks of financial bubbles in the U.S., while raising concerns that the central bank’s policy tool kit is limited and untested.

     A reading on August factory orders today also fell more than forecast, while an increase in July was revised lower. A measure of manufacturing released yesterday showed activity barely grew in September as a broader swath of industries suffered from the effects of a strong dollar and faltering overseas markets.

     “We’re seeing some weakness in some of the manufacturing numbers earlier in the week,” said Joseph Betlej, who helps oversee $33 billion as vice president of Advantus Capital Management. “That was causing me some concern. Seeing the confirmation with payroll is a disappointment. I think it’s really going to cause people to second guess the strength of the economy.”

     Stock gains over the last four days were a respite for markets rattled by worries that China’s slowdown will stunt global growth and amid mixed messages on Fed policy. The S&P 500 just posted its worst quarter since 2011 while market turbulence has soared, with a measure of volatility surging to its biggest monthly gain ever in August. The equity benchmark closed Friday down 8.4 percent from a record set in May.

     The Chicago Board Options Exchange Volatility Index fell 7.1 percent to 20.94, erasing an earlier 8.5 percent jump. The gauge of market turbulence known as the VIX closed 11.4 percent lower for the week, after a 34 percent climb last quarter.

     Energy, raw-materials and health-care shares rallied the most among the S&P 500’s 10 main groups, rising more than 2 percent. Financials were little changed, after slumping more than 3 percent, as banks pared their retreat.

     In addition to the weaker dollar, energy companies got a lift after U.S. explorers reduced the number of rigs drilling for oil to a five-year low, signaling further drops in production. The group jumped 4 percent, the most in a month. Diamond Offshore Drilling Inc. and Transocean Ltd. jumped more than 8.2 percent, the most since August.

     It was the fourth day of gains for raw-material companies, their longest stretch in more than two months. Newmont Mining Corp. climbed 7.8 percent amid gold’s best rally in six weeks. Martin Marietta Materials Inc. increased 4.1 percent to bring its three-day advance to 9.9 percent, the strongest since February.

     Biotechnology shares rallied for a third day, after the Nasdaq Biotechnology Index on Wednesday halted its longest losing streak in nearly seven years. The gains pushed health- care companies higher, as Mylan NV and Vertex Pharmaceuticals Inc. rallied at least 5.4 percent. Pfizer climbed 3.9 percent, the most in 17 months, to rise 7.3 percent since Monday’s close.

     Banks slipped as investors bet that falling bond yields mean low interest rates will continue to crimp profits. Bank of America Corp. and Fifth Third Bancorp lost at least 1 percent, trimming earlier declines of more than 4 percent. The KBW Bank Index sank 0.6 percent, with 21 of 24 members sinking, after losing as much as 4.5 percent.

 

Have a wonderful weekend everyone.

 

Be magnificent!

The purity of life is the highest and most authentic art to follow.

Mahatma Gandhi

As ever,

 

Carolann

 

A closed mind is a dying mind.

      -Edna Ferber, 1885-1968

 

 

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 1962, Johnny Carson made his debut as host of “The Tonight Show,” a program that he hosted for three decades.

October was the eight month of the ancient Roman calendar (Latin “octo” = eight) when the year began in March.  The old Dutch name was Wynmaand, and the Old English Winmonath, “wine month” or the time of vintage.  Another Old English name was Winterfylleth, perhaps meaning “winter full moon” but possibly from fyllan, “to fell” as a time of tree felling.  In the French revolutionary calendar, the equivalent month  wasVendémiaire, “time of vintage,” corresponding to the period from 23 September to 22 October.

On October 1^st, 1918,  Sir Walter Raleigh wrote to Mrs. Dowdall this little gem of advice:

Marry your children, sack your servants, forget your enemies, remember your friends, enslave your admirers, fatten yourself – and all will yet be well. –from The Book of Days.

PHOTOS OF THE DAY

Judges walk from Westminster Abbey to the Houses of Parliament in central London after a service to mark the start of the legal year Thursday. Stefan Wermuth/Reuters

Liberal Leader Justin Trudeau embraces a supporter after speaking during a campaign stop at a forklift dealership in Montreal, Canada, Thursday. Paul Chiasson/The Canadian Press/AP

Market Closes for October 1st, 2015

Market Index	Close	Change
Dow Jones	16272.01	-12.69   -0.08%
S&P 500	1921.65	+1.62   +0.08%
NASDAQ	4627.086	+6.921   +0.15%
TSX	13229.99	-76.97
		-0.58%

International Markets

Market Index	Close	Change
NIKKEI	17722.42	+334.27
		+1.92%
HANG SENG	20846.30	+289.70
		+1.41%
SENSEX	26220.95	+66.12
		+0.25%
FTSE 100	6072.47	+10.86
		+0.18%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.431	1.432
CND. 30 Year Bond	2.204	2.199
U.S.    10 Year Bond	2.0403	2.0368
U.S. 30 Year Bond	2.8515	2.8538

Currencies

BOC Close	Today	Previous
Canadian $	0.75404	0.75068
US $	1.32619	1.33213
Euro Rate 1 Euro=		Inverse
Canadian $	1.48360	0.67404
US $	1.11869	0.89390

Commodities

Gold	Close	Previous
London Gold Fix	1119.00	1114.00
Oil	Close	Previous
WTI Crude Future	44.74	45.09

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, after closing the worst quarter since 2011, as raw-materials shares retreated and oil producers erased an early advance.

     Equities slipped 0.5 as oil reversed a 4.5 percent gain. Valeant Pharmaceuticals International Inc. recovered from early losses, adding to Wednesday’s 12 percent rebound. The stock plunged 22 percent in September amid increased scrutiny over U.S. drug pricing.

     The Standard & Poor’s/TSX Composite Index fell 65.07 points to 13,241.89 at 4 p.m. in Toronto, after reaching an October 2013 low on Monday. The gauge tumbled 8.6 percent in the quarter that ended Wednesday and has slumped 14 percent from an April peak.

     Global equities posted the worst quarterly losses in four years in the third quarter amid rising concern that a slowdown in Chinese growth will spread to economies around the world at the same time that the U.S. central bank is considering raising interest rates. Commodities have been hardest hit as China is the world’s leading consumer. China is Canada’s second-largest trading partner after the U.S.

     The Bloomberg Commodity Index, which tracks a basket of prices from live cattle to gold, was little changed after two days of gains. The gauge has plunged 16 percent this year. Oil advanced as much as 4.5 percent amid better-than-forecast manufacturing data from China, before paring. The nation’s official manufacturing gauge for September stabilized at 49.8, ahead of the median estimate of 49.7 in a Bloomberg survey. Readings of less than 50 indicate contraction.

     Amaya Inc., the online gambling company, jumped 17 percent for the biggest gain since June 2014 after receiving approval to operate its PokerStars and Full Tilt poker brands in New Jersey.

     Canadian equities are among the worst-performing markets in the developed world this year with a 9.5 percent slide, led by declines among raw-materials and energy producers of at least 24 percent.

US

By Jeremy Herron and Joseph Ciolli

     (Bloomberg) — U.S. stocks erased a steep drop in afternoon trading, while Treasuries and crude oil meandered as investors awaited a report on the American labor market that’s likely to influence expectations on the outlook for interest-rate hikes.

     The Standard & Poor’s 500 Index rallied back from a slump of more than 1 percent to post its third straight day of gains. The advance added to an end-of-quarter rally that helped pare its worst performance in four years. U.S. crude surged more than 4 percent only to settle near where it began. Ten-year Treasury yields touched a five-week low before reversing in the final hour of the Thursday session, while the dollar retreated.

     Investors remained cautious before Friday’s nonfarm payrolls report, which is expected to show the U.S. economy added 200,000 jobs last month. The data will factor into the Federal Reserve’s next rate decision, due Oct. 28, as the central bank also weighs whether recent financial-market turmoil, cited as a reason for standing pat on rates last month, has abated enough to warrant tightening. Last quarter’s selloff targeted risk assets from emerging markets to oil, while havens such as the yen strengthened.

     “After this big rally we had yesterday, I think people want to sit and see what happens,” said Matt Maley, an equity strategist at Miller Tabak & Co LLC in New York. “We’ve got the employment number tomorrow. The bottoms following those bad Septembers usually come in October. People are going to sit on the sidelines a little bit longer until they get some more clarification.”

     Global equities have been trying to rebound from their steepest quarterly rout since September 2011, sparked by concern a slowdown in China could hamper global growth at the same time as the Fed moves toward its first rate increase since 2006. Commodities got an early boost after Chinese data showed some stabilization in manufacturing, while a reading on American output raised concern about the strength of factories there.

     The S&P 500 added 0.2 percent to 1,923.82 by 4 p.m. in New York after rallying 1.9 percent on Wednesday. That benchmark’s bounce-back began Tuesday after the index slid withing five points of its Aug. 25 low. The three days of gains are the most since Aug. 28.

     Thursday’s advance doesn’t necessarily signal the all- clear. Almost 35 percent of the gauge’s members have slipped back below their price from that nadir. The heavyweights are doing all the lifting: Apple Inc., Microsoft Corp. and Exxon Mobil Corp. — the three largest companies by market cap — account for nearly one-fifth of the gains since the market bottomed.

     “We need to see fewer companies hit new lows, and more companies hit new highs,” said Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird & Co., which oversees $110 billion. “Once that starts happening, we can feel confident that the new lows are in place. Without it, it looks suspect.”

     The Stoxx Europe 600 sank 0.4 percent, erasing an earlier gain of 1.5 percent. The gauge rallied 2.5 percent Wednesday to trim its biggest quarterly drop since 2011. Glencore Plc fell 0.6 percent after earlier jumping as much as 8.2 percent, erasing Monday’s 29 percent plunge. Japan’s Topix index surged 2.2 percent, helping the MSCI Asia Pacific Index to a 1.6 percent increase.

     The MSCI All-Country World Index added 0.4 percent, clinging to a second day of gains after completing its worst quarter in four years.

     The dollar weakened following gains last month and the previous quarter as investors prepared for Friday’s employment report. The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, fell 0.1 percent. The index gained 0.6 percent in September and 2.8 percent during the third quarter.

     “It looks like the market is just waiting to get a bad number that will confirm the Fed’s dovishness,” Steven Englander, global head of Group-of-10 foreign exchange strategy at Citigroup, said by phone. “If it’s a strong number, you break even in dollar terms, and, if it’s a weak number, the dollar will sell off.”

     The yen was little changed at 119.93 per dollar, erasing earlier losses after Bloomberg reported that Bank of Japan officials see little need for adding to its unprecedented monetary stimulus. The Australian dollar rose 0.2 percent in a second day of gains and oil’s intraday surge bolstered the Norwegian krone, which jumped 1.1 percent.

     Ten-year Treasury yields closed at 2.04 percent after sliding 13 basis points over the previous three days. Rates reached a five-week low earlier on Thursday amid doubts the Fed will boost borrowing costs this year. Odds of a rate increase in October remain around 16 percent, according to Fed funds futures, which the chance of a hike in December is at 44.6 percent.

     “The probability that you see in December is not 100 percent, but rationally that reflects the fact that we have a few months to go and the payrolls could break either way,” Francesco Garzarelli, co-head of macro markets and market research at Goldman Sachs Group Inc., said in an interview on Bloomberg Radio.

     The Bloomberg Commodity Index sank 0.8 percent, erasing a prior gain after two days of advances. Natural gas, nickel and lean hogs led declines.

     West Texas Intermediate crude futures settled down 0.8 percent at $44.74 a barrel, erasing its earlier surge. WTI’s average price last quarter was the least since the first three months of 2009, as U.S. crude inventories expanded and Iraq, OPEC’s second-largest producer, increased output.

     Gold fell for a fifth day, its longest run of losses since July, losing 0.1 percent to settle at $1,113.50 an ounce as investors await the jobs report for clues on to Fed’s policy plans. Higher borrowing costs curb the appeal of bullion, which doesn’t pay interest or give returns like other assets such as bonds and equities.

     Copper futures for December delivery dropped 1.6 percent to settle at $2.3045 a pound in New York.

     The MSCI Emerging Markets Index rose for a second day, advancing 0.7 percent, following the Chinese manufacturing data and as higher commodity prices lifted materials producers. While markets in Shanghai and Hong Kong were shut for National Day celebrations, assets in nations that count China among their biggest trading partners rallied.

     The gauge for emerging-market stocks lost 19 percent of its value in the third quarter, the worst rout for the period since 2011, with investors pulling $40 billion out of developing economies.

     Brazil’s real, the worst performer among major and developing-nation currencies last quarter, resumed declines Thursday, slipping 1.6 percent after lawmakers approved amendments to a retirement bill that would boost government spending. The real has been sliding amid concern over the country’s finances as it heads into its longest recession since the 1930s.

Have a wonderful evening everyone.

 

Be magnificent!

True morality consists not in following

the well-beaten track,

but in finding out the true path for ourselves

and in fearlessly following it.

Mahatma Gandhi

As ever,

 

Carolann

 

Perhaps the straight and narrow path would be wider if more people used it.

                                                                                         -Kay Ingram

 

 

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 design for the new Vancouver Art Gallery was revealed yesterday  and it is a unique and fabulous concept by Swiss firm Herzog & Meron.  The design features stacked layers of wood encased chambers, a welcome departure from the glass and concrete.  The Vancouver Sun today states “It’s being compared to everything from a pagoda and a stack of bento boxes to a stylized totem pole and a welcome figure.”   

We were in Vancouver last weekend and stopped by the Art Gallery to check out the current exhibit, “Of Heaven &  Earth – 500 Years of Italian Painting from Glasgow Museums.”  It is a very good show featuring art from the late middle ages to the Renaissance – much of it from the collections of an industrialist named McClellan from the last century – everything from Bellini, Bottecelli and Titians to lesser known masters of the time.  Well worth visiting before it ends on October 4^th.

September 30^th, 1955:  Actor James Dean was killed in a two-car collision near Cholame, Calif., at age 24.

And in 1452, the Gutenberg bible was published.

PHOTOS OF THE DAY

Skydivers create a record-breaking formation above Perris, Calif., Tuesday. Two-hundred-and-two skydivers from around the world set the record when they all linked up thousands of feet above Southern California. The group formed the largest sequential skydiving formation. Craig O’Brien via AP

A woman with a pram walks past a street art installation in Astana, Kazakhstan, Wednesday. Shamil Zhumatov/Reuters

Market Closes for September 30^th, 2015

Market Index	Close	Change
Dow Jones	16284.70	+235.57   +1.47%
S&P 500	1920.03	+35.94   +1.91%
NASDAQ	4620.164	+102.843   +2.28%
TSX	13306.96	+270.00
		+2.07%

International Markets

Market Index	Close	Change
NIKKEI	17388.15	+457.31
		+2.70%
HANG SENG	20846.30	+289.70
		+1.41%
SENSEX	26154.83	+376.17
		+1.46%
FTSE 100	6061.61	+152.37
		+2.58%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.432	1.434
CND. 30 Year Bond	2.199	2.189
U.S.    10 Year Bond	2.0368	2.0508
U.S. 30 Year Bond	2.8538	2.8530

Currencies

BOC Close	Today	Previous
Canadian $	0.75068	0.74482
US $	1.33213	1.34260
Euro Rate 1 Euro=		Inverse
Canadian $	1.48851	0.67181
US $	1.11739	0.89495

Commodities

Gold	Close	Previous
London Gold Fix	1114.00	1132.10
Oil	Close	Previous
WTI Crude Future	45.09	45.23

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks rose a second day as markets around the world rebounded to pare losses in the worst quarter for equities since 2011.

     Canadian shares added 2.1 percent, led by gains among banks and health-care companies. Drugmakers Valeant Pharmaceuticals International Inc. and Concordia Healthcare Corp. snapped a four-day slide sparked by greater scrutiny on drug pricing.

     Global equities have tumbled in the third quarter amid rising concern that a slowdown in Chinese growth will spread to economies around the world at the same time that the U.S. central bank is considering raising interest rates. Commodities have been hardest hit as China is the world’s leading consumer. Stocks ended the quarter with a rally as some of the period’s biggest tumblers found favor.

     The Standard & Poor’s/TSX Composite Index rose 270 points to 13,306.96 at 4 p.m. in Toronto, the most in two weeks, after slumping to an October 2013 low Monday. The gauge has declined 4 percent in September. It’s down 8.6 percent in the quarter that ended Wednesday and has tumbled 14 percent from an April peak.

     Canada’s economy grew 0.3 percent in July, ahead of median analysts’ estimates for a 0.2 percent increase. The world’s 11th largest economy is poised to rebound this quarter after contracting in the first half, weakened by a drop in commodity prices, Bank of Canada Governor Stephen Poloz predicts. Auto- parts manufacturers Magna International Inc. and Linamar Corp. jumped at least 3.7 percent to lead consumer discretionary stocks higher.

     The Bloomberg Commodity Index, which tracks a basket of prices from live cattle to gold, added 0.3 percent for a second day of gains. The gauge has plunged 14 percent this quarter.

Copper climbed as much as 4.5 percent to cut the biggest quarterly slump in four years. First Quantum Minerals Ltd. climbed 5.2 percent to pare its drop in the three months to 70 percent.

     Canadian equities are among the worst-performing markets in the developed world this year with a 9.1 percent slide, led by declines among raw-materials and energy producers of at least 24 percent.

US

By Anna-Louise Jackson and Kate Garber

     (Bloomberg) — For traders who suffered through the worst quarter for equities in four years, the Standard & Poor’s 500 Index’s best rally in three weeks Wednesday was little more than a token consolation.

     Investors targeted their buying in some of the third quarter’s most-battered companies, with energy, raw-material and health-care shares among the leaders of the S&P 500’s 10 main groups after falling the most since June. All 10 industries in the benchmark advanced today, while a gauge of volatility had its steepest decline in more than a week.

     “We’re getting a snapback in some of the beaten-down names, particularly in biotech, and I think that’s to be expected after the beating they took,” said Lew Piantedosi, vice president of growth equities at Eaton Vance Management in Boston, where he helps oversee almost $14 billion. “There also could be some end- of-the-quarter window dressing going on today.”

     Investors should expect between $21 billion and $26 billion in buying of equities and some selling of bonds as pension-fund managers rebalance their portfolios at the end of the quarter, Boris Rjavinski, a strategist at UBS AG, wrote in a Sept. 25 report.

     The S&P 500 Index climbed 1.9 percent to 1,920.03 at 4 p.m. in New York, the most since Sept. 8. The measure ended the quarter down 6.9 percent. The Dow Jones Industrial Average gained 235.57 points, or 1.5 percent, to 16,284.70. The Dow lost 7.6 percent since June ended. The Nasdaq Composite Index surged 2.3 percent today, while the Russell 2000 Index advanced 1.6 percent to halt eight days of losses.

     The Chicago Board Options Exchange Volatility Index has closed above 20 for the past 28 sessions, the longest streak since January 2012. The measure of market turbulence known as the VIX fell 8.7 percent Wednesday to 24.50, the most in seven sessions. About 8.5 billion shares traded hands on U.S. exchanges, 16 percent above the three-month average.

     Mixed messages on Federal Reserve interest-rate policy combined with worries of a China slowdown sent the S&P 500 to consecutive monthly declines while creating the most turbulent period for stocks in years. The benchmark is down 9.9 percent from its record set in May, and came within five points Tuesday of its 2015 closing low reached in August. This quarter’s retreat has wiped almost $11 trillion off the value of global shares.

     The S&P 500 slumped 2.6 in September, and posted its first back-to-back quarterly decline in four years. Energy and raw- material companies were the third quarter’s worst performers, plunging more than 17 percent amid concern that weakness in China will curb demand for commodities and crimp global growth.

     Trading within raw-materials Wednesday was similar to the broader market. Copper producer Freeport-McMoRan Inc. led gains, up 6.4 percent while also posting the steepest drop since June among materials companies, down 48 percent. Chesapeake Energy Corp. climbed 8 percent today to lead the energy group, while capping a 34 percent quarterly retreat, its biggest since 2008.

     Among other recently hard-hit stocks, semiconductors in the S&P 500 advanced the most in three weeks today amid their biggest quarterly swoon in three years. Auto-related companies rose for a second day as a selloff sparked by Volkswagen AG’s emissions scandal abated. Delphi Automotive Plc and General Motors Co. added more than 2.9 percent.

     Biotechnology stocks halted a selloff that sent the former high-fliers into a bear market. The Nasdaq Biotechnology Index rose 4.5 percent Wednesday, after its longest losing streak since October 2008. The group had slumped 20 percent during the stretch, and is down 24 percent from an all-time high in July.

     Biotechs had run up 56 percent to their July high from an October 2014 low. The group has weighed on the Russell 2000 Index, which fell to an 11-month low Tuesday amid its longest string of losses in more than nine years.

     Amid today’s biotech rebound, Biogen Inc. and Amgen Inc. gained at least 3.2 percent. As evidence of the severity of their recent declines, Biogen posted its biggest quarterly slide — 28 percent — in 10 years, while Amgen had its worst performance since 2010.

     While stocks rallied Wednesday, investors waiting for an all-clear sign may need to brace for more drama. Strategas Research Partners LLC points out that the S&P 500 has a messy history of bounce attempts before settling on an October bottom, with jerky markets lingering after steep August declines in 2011, 1998 and 1990. In each case, a recovery only emerged after the initial low was undercut by as much as 3.8 percent a month or so later.

     “I think the U.S. economy is on the right track, and the equity markets will turn around and have a strong last quarter of the year,” said Andrew Brenner, the head of international fixed income for National Alliance Capital Markets. “I wouldn’t be surprised to see stocks bottom the first full week of October. Then I think we’ll probably do OK between now and the end of the year because I believe the U.S. economy is doing just fine.”                       

     The U.S. equity benchmark is down 3.8 percent since the Federal Reserve held back from raising interest rates on Sept. 17, citing global market turmoil and a slowdown in China as reasons for standing pat. Fed officials, including Chair Janet Yellen, have since suggested that the U.S. economy is sturdy enough to handle higher rates this year. Traders aren’t convinced, as they price in a 41 percent chance of higher borrowing costs in December, and about 50 percent odds of an increase by January.

     As policy makers closely watch the strength of labor markets for potential cues on when to raise rates, a report today showed companies stepped up hiring in September, indicating the job market is standing firm in the face of weaker global demand.

     The September jobs report issued by the Labor Department Friday may show private businesses added about 200,000 employees after a 140,000 increase in August, according to the median forecast of economists surveyed by Bloomberg. The unemployment rate probably held at 5.1 percent, the lowest since April 2008.

     Among shares moving on corporate news, Ralph Lauren Corp. jumped nearly 14 percent, the most in more than nine years as Ralph Lauren steps down as chief executive. He will hand the reins to Stefan Larsson, a rising retail star credited with reviving Gap Inc.’s Old Navy brand. Gap lost 5.7 percent to a three-year low.

     Advance Auto Parts Inc. closed at an all-time high, up 11 percent. Activist investor Starboard Value LP confirmed its 3.7 percent stake in the auto-parts retailer, and said opportunities exist “to create substantial value for all shareholders.”

 

Have a wonderful evening everyone.

 

Be magnificent!

My work will be finished if I succeed in carrying conviction to the human family,

that every man or woman, however weak in body,

is the guardian of his or her self-respect and liberty, and that this defence prevails,

though the world be against the individual resister.

Mahatma Gandhi

As ever,

 

Carolann

 

Science is organized knowledge.  Wisdom is organized life.

                                        -Immanuel Kant, 1724-1804

 

 

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 1982, seven people are killed by cyanide-laced Tylenol.  I worked at JNJ at that time and I remember the value of Johnson & Johnson shares went into free-fall. 

I asked my boss at the time if he thought they would ever recover and he told me to buy more – which I did.  Johnson & Johnson recalled all the Tylenol on store shelves and put Tylenol back on the market 2 months later with tamper-proof containers.  They regained all the market share they had lost – a case still studied today at Harvard Business School.   Shareholders have been rewarded too.  $1000 invested in Johnson & Johnson on September 28, 1982 just before the episode would be worth $22,062 today and investors have received ever-increasing dividends year after year.  An extremely valuable lesson in investing.

PHOTOS OF THE DAY

Sparrows fly around a bird feeder in Putgarten, Germany, Tuesday. Hannibal Hanschke/Reuters

Dairy farmers walk with their cows during a protest against the Trans-Pacific Partnership (TPP) trade agreement in front of Parliament Hill in Ottawa, Canada, Tuesday. Chris Wattie/Reuters

Market Closes for September 29^th, 2015

Market Index	Close	Change
Dow Jones	16049.13	+47.24   +0.30%
S&P 500	1884.09	+2.32   +0.12%
NASDAQ	4517.320	-26.648   -0.59%
TSX	13036.96	+32.38
		+0.25%

International Markets

Market Index	Close	Change
NIKKEI	16930.84	-714.27
		-4.05%
HANG SENG	20556.60	-629.72
		-2.97%
SENSEX	25778.66	+161.82
		+0.63%
FTSE 100	5909.24	-49.62
		-0.83%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.434	1.441
CND. 30 Year Bond	2.189	2.196
U.S.    10 Year Bond	2.0508	2.0984
U.S. 30 Year Bond	2.8530	2.8796

Currencies

BOC Close	Today	Previous
Canadian $	0.74482	0.74710
US $	1.34260	1.33851
Euro Rate 1 Euro=		Inverse
Canadian $	1.51050	0.66203
US $	1.12505	0.88885

Commodities

Gold	Close	Previous
London Gold Fix	1132.10	1131.05
Oil	Close	Previous
WTI Crude Future	45.23	44.43

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks rose from a two-year low on Monday, with the benchmark index erasing a loss in the final 30 minutes of trading as banks rallied with industrial companies. The gauge remains on track for its worst quarterly slide since 2011.

     Bank of Montreal and Bank of Nova Scotia jumped at least 1.3 percent as financial services firms in the index advanced. Bombardier Inc. surged 7 percent to lead industrial shares higher. Valeant, the third-largest company in Canada’s benchmark equity gauge by market capitalization, sank 4.4 percent, extending declines to the lowest since February.

     Raw-materials producers increased after plunging to a 10- year low Monday. Oil advanced ahead of data Wednesday expected to show a decline in U.S. crude supplies. Glencore Plc jumped 17 percent, a record, after plummeting 29 percent a day before.

     The Standard & Poor’s/TSX Composite Index rose 32.38 points to 13,036.96 at 4 p.m. in Toronto, after closing at an October 2013 low yesterday. The gauge has declined 5.9 percent in September, the worst drop since 2012. It’s down 10 percent in the quarter that ends Wednesday.

     Global markets retreated, as the MSCI All-Country World Index slipped 0.6 percent to extend a two-year low. The S&P 500 rose 0.6 percent in New York while the Stoxx Europe 600 fell 0.6 percent.

     The Bloomberg Commodity Index, which tracks a basket of prices from live cattle to gold, recovered 0.3 percent after a 1.3 percent drop yesterday. The gauge has plunged 16 percent this year.

     Potash Corp. of Saskatchewan Inc. rose 1.1 percent as raw- materials companies advanced 0.3 percent as a group. The gauge has slumped 11 percent in September, headed for a fifth straight monthly decline.

     Valeant fell for a fourth day, bringing its rout in September to 30 percent. Smaller drugmaker Concordia Healthcare Corp. has plummeted 46 percent this month.

     Canadian equities are among the worst-performing markets in the developed world this year with an 11 percent slide, led by declines among raw-materials and energy producers of at least 24 percent. Commodity shares have retreated amid plunging oil prices and uncertainty about global economic growth, especially in China. China is Canada’s second-largest trading partner after the U.S.

US

By Joseph Ciolli and Kate Garber

     (Bloomberg) — The Standard & Poor’s 500 Index halted a five-day slide, on the way to its worst quarter since 2011, after the benchmark came within five points of its August low before reversing in the final minutes of trading.

     Equities swung between gains and losses as health-care companies rebounded, while biotechnology shares erased an early rally and Apple Inc. dragged technology companies lower. The Nasdaq Composite Index was briefly on track to close at an 11- month nadir before trimming its drop. The Russell 2000 Index slumped 0.6 percent to its worst level since October 17 amid its longest losing streak since 2006. The Nasdaq Biotechnology Index fell for an eighth day, the most in nearly seven years.

     The S&P 500 Index rose 0.1 percent to 1,884.09 at 4 p.m. in New York, and is down 4.5 percent in September on the way to back-to-back monthly declines. The Dow Jones Industrial Average added 47.24 points, or 0.3 percent, to 16,049.13. The Nasdaq Composite lost 0.6 percent as Apple sank 3 percent. About 7.9 billion shares traded hands on U.S. exchanges, about 8 percent above the three-month average.

     “When we have spikes in volatility, like we did at the end of August, that’s normally followed by some additional choppiness until it peters out,” said Kevin Caron, a market strategist and portfolio manager who helps oversee $170 billion at Stifel Nicolaus & Co. in Florham Park, New Jersey. “It’s not uncommon to see this around changes in direction for key things like monetary policy. We still have this lingering volatility that we’re working through.”

     Stocks have been volatile in recent weeks amid confusion over the Federal Reserve’s rate-tightening policy while concern lingers that an economic slowdown in Asia will curb demand for commodities and crimp global growth. The S&P 500 is poised for its worst quarter since 2011, down 8.7 percent. The benchmark is almost 12 percent below its all-time high set in May.

     The turbulence underscores the disparity between investors confident in the U.S. economy and those concerned about sliding commodity prices and slowing Chinese growth. Fed officials insist the recovery has sufficient momentum to cope with higher interest rates. Still, the selloff in U.S. shares has prompted at least two of the bull market’s biggest cheerleaders to cut their year-end forecasts for the S&P 500 by as much as 9.7 percent.

     Goldman Sachs chief U.S. equity strategist David Kostin also lowered his year-end price target for the equity benchmark. He now estimates a level of 2,000, down from 2,100 earlier, because of slower than anticipated growth from the world’s two biggest economies and lower-than-expected oil prices.

     “Nothing feels like it’s going to bounce, especially given the fact that there’s no real catalyst on the horizon for a couple weeks,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee. “Earnings are probably the next catalyst that could help stem some of the losses here, but those don’t really kick off meaningfully until October 12th and after.”                         

     A report today showed consumer confidence unexpectedly gained this month as persistent job gains helped Americans shake off the effects of tumbling stock prices. Another report showed home prices in 20 U.S. cities rose 5 percent in July from the same month a year earlier, propelled by improving demand and limited supply.

     The Chicago Board Options Exchange Volatility Index has closed above 20 for the past 27 sessions, the longest streak since January 2012. The measure of market turbulence known as the VIX fell 2.9 percent Tuesday to 26.83 after reaching a three-week high yesterday.

     “Commodities are not looking good but the Fed’s not hiking, so they’re balancing each other out to some extent,” said Alessandro Bee, a strategist at Bank J Safra Sarasin Ltd. in Zurich. “There will be volatility because we get a lot of important numbers, but it’s not easy to read what the data will imply for the Fed.”

     Traders are split on whether the Fed will raise rates this year. They are pricing in about a 40 percent chance of an increase in December, and a 47 percent probability in January.                      

     Health-care companies were the strongest performers among the S&P 500’s 10 main industries, after the group dropped 11 percent over seven sessions. Technology shares were the biggest drag, sliding 0.6 percent while six groups advanced.

     Medtronic Plc and Bristol-Myers Squibb Co. rallied more than 2.5 percent to help propel health-care, snapping the group’s longest losing streak in four years. Johnson & Johnson gained 1.8 percent. Deutsche Bank AG raised its rating on the shares to buy from hold, seeing the company as a “diversified safe haven with capital to deploy.”

     The Nasdaq Biotech Index fell 0.6 percent after erasing a 3.9 percent rally. The gauge has dropped 15 percent in September, sliding into a bear market after reaching a record on July 20. Mylan NV lost 2.6 percent, and Allergan Plc. retreated 1.1 percent.

     Yahoo! Inc. climbed 2.4 percent after the company said it’s on track to spin off its stake of about $22 billion in Alibaba Group Holding Ltd. this year. Yahoo’s board authorized the spinoff, even though the U.S. Internal Revenue Service declined to grant the company an advance ruling blessing the deal, Yahoo said in a filing Monday.

     Apple slumped 3 percent after losing 2 percent yesterday to weigh on the benchmark’s technology group. The shares are down 13 percent in the third quarter, the most since 2013. PayPal Holdings Inc. sank 5 percent for a 9.3 percent two-day decline, while Facebook Inc. lost 2.9 percent to extend its three-day drop to 8.2 percent.

     Nike Inc. declined 2 percent, extending a 2.3 percent decline Monday after shares rallied almost 9 percent Friday following better-than-expected earnings. Nike Inc. won’t renew its apparel contract with the University of Texas before the company’s exclusive negotiating window expires on Oct. 1, according to people with direct knowledge of the talks.

     That could put it in a bidding war with rivals, including Under Armour Inc. and Adidas AG, for the richest program in college sports. Under Armour slid 6.8 percent, the most in more than five weeks.

 

Have a wonderful evening everyone.

 

Be magnificent!

Fearlessness is the first requirement of spirituality.

Cowards can never be moral.

Mahatma Gandhi

As ever,
 

Carolann

 

Solitude is the profoundest fact of the human condition. Man is the only being who knows he is alone.

                                                                                                            -Octavio Paz, 1914-1998

 

 

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:

I read this article in today’s Wall Street Journal; thought it worth sharing:

The Power of Prayer—and Chemotherapy

‘Repair enzymes’ fix damaged DNA in cells. Talking to God can repair damaged souls.

By 
KIRK J. ZACHARY

When he was 8 years old, my son, Noah, a true-blue New York Yankees fan, visited his pediatrician for a physical exam before starting day camp. His doctor found a lump in his neck.

The evaluation began with a chest X-ray, which showed a mass; the CT scan confirmed a large lesion in his chest. As a physician, I prayed to God that it would be tuberculosis. Perhaps I was the only doctor ever to ask God to give his son tuberculosis. The biopsy revealed Hodgkin’s disease, a form of lymphoma, and I quickly began to pray for my son’s life. A deep, gut-penetrating fear seared through my body.

Tefillah is the Hebrew word for prayer. The Torah, also referred to as the Old Testament, begins with: “When God began to create.” And how did God create? With words. Genesis 1:3 “God said ‘Let there be light’; and there was light.” Genesis 1:26 “God said: ‘Let us make man in our image.’ ” Thus, we see that God used words to bring all that we know into existence.

For those who aren’t sure about God or don’t believe, as the recently deceased author and neurologist Oliver Sacks wrote: “Who cared if there was really any Being to pray to? What mattered was the sense of giving thanks and praise, the feeling of a humble and grateful heart.” As God used the power of his words to create, we use the power of our words to connect with God through prayer.

A small walk-in closet in my bedroom became my private sanctuary for both prayer and crying, mostly loud, weeping wails. It felt good to release the pain and fear—the pain of being a physician who still couldn’t protect my only son from cancer; the fear that he would not survive.

I prayed for Noah every day. I believe everyone prays to the same God. He is like a diamond that reveals different facets to different faiths and people, at different times. Prayer is a wireless call to God; sometimes it’s a one-way conversation. God is listening but he may not always provide an immediate response. That is part of the process.

Chemotherapy, smart doctors and prayer saved my son. My private talks and my private yelling at God, however, saved me. I felt anger and betrayal. How could God let this happen to my son, my only son. I screamed at God and to him. The rants ended in my quiet prayers to God for Noah’s healing. These things came together to treat his Hodgkin’s disease. Chemotherapy alone, prayer alone . . . neither would have been enough.

As sunlight damages the cells in skin, souls are done in by the travails of everyday life. Prayers can be solitary, but prayers from a church, mosque or synagogue are from a community. There is strength and support when you pray as a congregation. You are not alone; you are with like-minded people and with God.

Early in my career, I worked with New York University’s Dr. George Teebor, who researched DNA repair mechanisms. When a carcinogen or radiation injures the DNA in cells, innate repair enzymes attempt to repair the damage. If this process fails, the cells may turn malignant. As DNA repair enzymes work to heal cellular damage, prayer can repair damaged souls.

In 2007, I listened to Rabbi Ken Stern’s High Holiday sermon at New York’s Park Avenue Synagogue. Rabbi Stern was a caring and compassionate teacher. From the pulpit he spoke about prayer, asking the congregation: “Is God listening? Does God hear our prayers? Do our prayers make a difference? If you want to win the lottery, you must first purchase a ticket. If you want God to answer your prayers, you must first pray.”

He went on: “God gave man free choice and free will. So God can direct, guide and help, but not control everything,” Rabbi Stern said. “Prayer is not a magic bullet; prayer has other purposes besides petition: It is meant to help us become better people through our encounters with God.”

Earlier this week at Park Avenue Synagogue, during Yom Kippur services, Rabbi Neil Zuckerman taught that prayer can be transformative. He said that we remind both God, and ourselves, that “repentance, prayer and charity” can cause positive changes in our lives.

In the middle of Noah’s chemotherapy, I prayed for his survival. God heard my prayers for Noah. Twenty years later, Noah is married, works in public relations and is on the board of the nonprofit Stupid Cancer, an organization to support young adults affected by cancer.

Different religions have different routes to the same destination: being close to God. If you believe in God, prayer is how we talk with him. It links us with generations past and present and with those to come. If you do not believe in God, prayer can hedge your bet, prayer can crystallize your thoughts and hopes and your fears. Prayer is among your best hopes for becoming a better human being. Prayer can be the self-repair for the world of damaged souls.

Dr. Zachary is a physician in New York City.

PHOTOS OF THE DAY

A Virginia creeper covers the 15th century tea rooms in Llanrwst in Conwy, Wales, Friday Rebecca Naden/Reuters

A woman, wearing a sprout like a hairpin, makes her way in Beijing, China on Friday. Wearing antenna-styled hairpins in the shape of various flowers and plants at scenic spots has become a new trend in Beijing. Kim Kyung-Hoon/Reuters

Pope Francis places a white rose at the south pool of the 9/11 Memorial Friday in New York City. John Minchillo/AP

Market Closes for September 25^th, 2015

Market Index	Close	Change
Dow Jones	16314.67	+113.35   +0.70%
S&P 500	1931.34	-0.90   -0.05%
NASDAQ	4686.496	-47.982   -1.01%
TSX	13378.57	+39.90
		+0.30%

International Markets

Market Index	Close	Change
NIKKEI	17880.51	+308.68
		+1.76%
HANG SENG	21186.32	+90.34
		+0.43%
SENSEX	25863.50	+40.51
		+0.16%
FTSE 100	6109.01	+147.52
		+2.47%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.529	1.467
CND. 30 Year Bond	2.274	2.220
U.S.    10 Year Bond	2.1640	2.1284
U.S. 30 Year Bond	2.9596	2.9166

Currencies

BOC Close	Today	Previous
Canadian $	0.75012	0.74979
US $	1.33312	1.33371
Euro Rate 1 Euro=		Inverse
Canadian $	1.49234	0.67009
US $	1.11943	0.89331

Commodities

Gold	Close	Previous
London Gold Fix	1146.65	1154.50
Oil	Close	Previous
WTI Crude Future	45.70	44.79

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks snapped a three-day slump as gains among the largest banks and industrial companies offset a decline in health-care and data showed the U.S. economy expanded more than previously forecast.

     Canadian equities added 0.3 percent, paring an earlier advance of as much as 1 percent in the final two hours of trading. Valeant Pharmaceuticals International Inc. tumbled to a four-month low to join a slump among U.S. health-care stocks as the Nasdaq Biotechnology Index plunged into a bear market. Bombardier Inc. soared 9.6 percent as industrial stocks rallied 1.7 percent as a group.

     The Standard & Poor’s/TSX Composite Index rose 39.90 points to 13,378.57 at 4 p.m. in Toronto, paring a weekly decline to 2 percent. The index is headed for a fifth straight monthly drop and its worst quarter in four years.

     “It’s a rotation,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. His firm manages about C$5.3 billion ($4 billion). “It’s been such a winner, the health-care sector. Now that the Fed has said rates will increase people will move back into financials.”

     A gauge of developed and developing markets advanced for the first time since the Federal Reserve declined to raise interest rates at a policy meeting last week. Chair Janet Yellen, speaking in Massachusetts Thursday, said the central bank was prepared to raise interest rates in 2015 at a gradual pace to allow more Americans to find work.

     Toronto-Dominion Bank and Bank of Nova Scotia advanced at least 0.9 percent to lead financial-services stocks higher. The S&P/TSX Banks Index gained 0.9 percent, halting a three-day retreat.

     Valeant declined 4.9 percent for a second day of losses, to a May low. The drugmaker, the largest in Canada, has slumped 13 percent in September for the biggest monthly retreat since August 2011. The Nasdaq Biotechnology Index has lost 13 percent this week after a tweet from Democratic presidential candidate Hillary Clinton suggested there may be “price gouging” in the pricing of prescription medicine.

     Global markets advanced, with the MSCI All-Country World Index rising 0.5 percent for the first increase in six days, paring an earlier advance as U.S. shares declined.

     The U.S. economy rose at a 3.9 percent annualized rate in the second quarter revised from a prior estimate of 3.7 percent, boosted by gains in consumer spending and construction, according to a government report.

     Canadian equities are among the worst-performing markets in the developed world this year, led by declines among raw- materials and energy producers of at least 22 percent, amid plunging oil prices and uncertainty about global economic growth, especially in China. China is Canada’s second-largest trading partner after the U.S.

     Suncor Energy Inc. added 1.7 percent and Canadian Oil Sands Ltd. increased 2 percent as energy stocks rose 0.5 percent as a group. Oil rose in New York, advancing for a second week on signs retreating supply will begin to pare a global glut.

     BlackBerry Ltd. sank 7.7 percent for a seventh day of losses that put it at the lowest since June 2014. The company reported a wider second-quarter loss than analysts estimated as smartphone shipments fell to the lowest since at least 2007.

US

By Joseph Ciolli and Lu Wang

     (Bloomberg) — The Standard & Poor’s 500 Index closed little changed, with the benchmark declining for a second straight week, as a selloff in biotechnology stocks thwarted a rally led by Nike Inc.

     A rebound in U.S. stocks, fueled by reassuring statements from Federal Reserve Chair Janet Yellen and Nike’s better-then- expected earnings, was eventually undermined Friday by a snowballing drop in biotechs. The Nasdaq Biotechnology Index fell into a bear market amid its worst weekly decline in four years. Banks, meanwhile, had their best day in more than two weeks, rising along with bond yields.

     The Standard & Poor’s 500 Index fell less than 0.1 percent to 1,931.34 at 4 p.m. in New York, after erasing an earlier 1.1 percent climb.The Nasdaq Composite Index lost 1 percent, wiping out a 1.1 percent advance. The Dow Jones Industrial Average gained 113.35 points, or 0.7 percent, to 16,314.67, supported by gains in Nike and JPMorgan Chase & Co.

     “Health-care was kind of the stalwart and we’re starting to see cracks in leaders,” said Channing Smith, a managing director at Capital Advisors Inc. in Tulsa, Oklahoma. The firm oversees about $1.6 billion. “When you see that, it’s one more reason to step back and be cautious.”

     Equities were initially boosted after Federal Reserve Chair Janet Yellen said in a speech following the close of markets yesterday that the central bank is on course to raise interest rates this year. Yellen’s remarks bolstered confidence the economy is sturdy enough to handle higher borrowing costs. She acknowledged that economic “surprises” could lead policy makers to change that plan.

     The Fed held its fire on a rate increase last Thursday, saying it’s considering spillover risks to the U.S. economy from turmoil in global markets. That sparked declines in U.S. equities in five out of six sessions prior to Yellen’s speech. The selloff was briefly interrupted on Monday when Fed officials said a 2015 increase is still warranted. Traders are split on whether it will happen, pricing in about a 43 percent chance of a hike in December and a roughly 51 percent probability of liftoff in January.

     The S&P 500 lost 1.4 percent this week, and posted its first back-to-back weekly drop since July. The benchmark has lost 6.4 percent in the third quarter, on track for its worst performance and first consecutive quarterly declines since 2011, with equities pressured as China’s slowdown weighed on sentiment.

     Amid the intensified weakness in stocks, the Chicago Board Options Exchange Volatility Index has closed above 20 for 25 straight sessions, the longest stretch since January 2012. The measure of market turbulence known as the VIX rose 0.6 percent Friday to 23.62, after earlier erasing an 11 percent drop.                        

     Calming some worries about the impact of an emerging-market downturn, data today showed the world’s largest economy expanded more than previously forecast in the second quarter. Growth was boosted by gains in consumer spending and construction. A separate report showed a final measure of consumer sentiment for September fell less than forecast, though it reached the lowest level in almost a year.

     Seven of the S&P 500’s 10 main groups rose Friday, with financial, consumer staples and utilities shares gaining the most. Health-care companies slid 2.7 percent to the lowest in almost 11 months.

     Biotech shares were a drag on the broader health-care group amid biotech’s longest losing streak in four years. The Nasdaq Biotechnology Index lost 5.1 percent, and is down 22 percent from an all-time high on July 20. The group has stumbled since Democratic presidential hopeful Hillary Clinton suggested on Monday there may be “price gouging” in the market for prescription pills. Celgene Corp. and Mylan NV lost more than 4.2 percent.

     Managed-care companies and insurers added selling pressure to the health-care sector. The SPDR S&P Health-Care Services ETF slipped 2.8 percent, extending its two-day loss to 4.5 percent. The fund fell 4.9 percent for the week, the most in more than three years.

     “It’s a rotation,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. His firm manages about C$5.3 billion ($4 billion). “It’s been such a winner, the health-care sector. Now that the Fed has said rates will increase people will move back into financials.”

     Financial companies in the benchmark gauge climbed 1.5 percent as 81 out of 88 companies increased. E*Trade Financial Corp. and Northern Trust Corp. added more than 2.6 percent as investors speculated higher interest rates will help boost profitability. The KBW Bank Index rose 2 percent as 23 of 24 firms gained. U.S. Bancorp and Citigroup Inc. increased more than 2.2 percent.

     Consumer discretionary companies finish little changed, despite Nike’s 8.9 percent jump to a record after its earnings beat estimates, helped by higher prices and a lower tax rate. Worldwide futures orders rose 17 percent at the globe’s largest maker of athletic gear, exceeding analysts’ estimates, with order growth in Europe, China, Japan and emerging markets also topping projections. That’s soothed shareholders, who have seen shaky overseas economies and currency fluctuations threaten sales.

     Nike competitor Under Armour Inc. gained 1.4 percent. Among other consumer discretionary shares, a handful of automotive- related companies rebounded from a three-day losing streak amid the fallout from the Volkswagen AG diesel-emissions scandal. BorgWarner Inc. and Goodyear Tire & Rubber Co. rose more than 1.8 percent.

     A rally among a swath of food manufacturers paced gains in consumer staples. Kellogg Co., Hormel Foods Corp. and Campbell Soup Co. all rose more than 1 percent. Reynolds American Inc. climbed 2.1 percent, on track for its best day since July, as people familiar with the talks said Japan Tobacco Inc. is in talks to buy cigarette assets from Reynolds.

     Pier 1 Imports Inc. slumped 12 percent to an almost five- year low after cutting its fiscal 2016 profit forecast. The retailer said sales growth has been below expectations, and margins have been hurt by increased promotional and clearance activity.

 

Have a wonderful weekend everyone!

 

Be magnificent!

You have to stand against the whole world although you may have to stand alone.

You have to stare the world in the face although the world may look at you with a bloodshot eye.

Do not fear

Trust that little thing in you which resides in the heart and says:

forsake friends, wife, all, but testify to that for which you have lived and for which you have to die.

Mahatma Gandhi

As ever,

 

Carolann

 

Man is free at the moment he wishes to be.

                            -Voltaire, 1694-1778

 

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:

Birthdays today:

1501 Gerolamo Cardano, mathematician, author of Games of Chance, the first systematic computation of probabilities.

1717 Horace Walpole, author, creator of the Gothic novel genre.

1755 John Marshall, fourth chief justice of the Supreme Court and U.S. secretary of state.

1870 George Claude, French engineer, inventor of the neon light.

1894 E. Franklin Frazier, first African-American president of the American Sociological Society.

1896 Francis Scott Key (F. Scott) Fitzgerald, novelist best known for The Great Gatsby.

1911 Konstantin Chernenko, president of the Soviet Union 1984-1985.

1936 Jim Henson, puppeteer who created the “Muppets” in 1954 and television’s Sesame Street.

1941 Linda McCartney, singer, photographer, activist; member of band Wings; former wife of Beatles member Paul McCartney.

1945 Louis “Lou” Dobbs, TV personality (Lou Dobbs Tonight, CNN), radio host (Fox Business Network).

1946 “Mean Joe” Greene, pro football player (Pittsburgh Steelers) considered one of the greatest defensive linemen ever to play in the NFL; member of Pro Football Hall of Fame.

On this day in 1925, Virginia Woolf wrote in her Diary:

But to tell the truth, I am exacerbated this morning.  It is 10:25, on  a fine grey still day; the starlings are in the apple trees; Leonard is in London.  But why am I exacerbated?  By Roger [Fry, artist and art critic].  I told him I had been ill all the summer.  His reply is – silence as to that; but plentiful descriptions of his own front teeth.  Egotism, egotism – it is the essential ingredient in a  clever man’s life I believe.  It protects; it enhances; it preserves his own vital juices entire by keeping them banked in.  Also I cannot help thinking that he suspects me of valetudinarianism and this enrages me; and Leonard is away and I can’t have my thorn picked out by him, so must write it out.  There!  it is better now; and I think I hear the papers come; and will get them, my woolwork, and a glass of milk.

PHOTOS OF THE DAY

Pope Francis, accompanied by members of Congress, waves to the crowd from the Speakers Balcony on Capitol Hill in Washington, Thursday, after addressing a joint meeting of Congress inside. Doug Mills/AP

Local skateboarder Markel Andronov jumps over an art work by a German street artist who goes by the name ‘Evol,’ in central Krasnoyarsk, Siberia, Russia, on Thursday. The artwork was created for the 11th Krasnoyarsk Museum Biennale, which will open September 30, with artists from Russia, the Unites States, Germany, Poland, Great Britain, Netherlands and other countries attending, according to organizers. Ilya Naymushin/Reuters

Market Closes for September 24^th, 2015

Market Index	Close	Change
Dow Jones	16201.32	-78.57   -0.48%
S&P 500	1935.47	-3.29   -0.17%
NASDAQ	4734.480	-18.264   -0.38%
TSX	13338.41	-45.28
		-0.34%

International Markets

Market Index	Close	Change
NIKKEI	17571.83	-498.38
		-2.76%
HANG SENG	21095.98	-206.93
		-0.97%
SENSEX	25863.50	+40.51
		+0.16%
FTSE 100	5961.49	-70.75
		-1.17%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.467	1.489
CND. 30 Year Bond	2.220	2.242
U.S.    10 Year Bond	2.1284	2.1514
U.S. 30 Year Bond	2.9166	2.9476

Currencies

BOC Close	Today	Previous
Canadian $	0.74979	0.74990
US $	1.33371	1.33351
Euro Rate 1 Euro=		Inverse
Canadian $	1.49421	0.66925
US $	1.12034	0.89259

Commodities

Gold	Close	Previous
London Gold Fix	1154.50	1131.35
Oil	Close	Previous
WTI Crude Future	44.79	44.37

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks fell a third day, reaching the lowest level in a month, as industrial shares dropped after Caterpillar Inc. cut its sales forecast in response to a commodities slump.

     Equities dropped 0.3 percent, paring earlier losses of as much as 1.1 percent as raw-materials producers rallied as commodities from copper to gold and oil advanced. Finning International Inc., which sells, finances and services Caterpillar equipment, sank to a four-year low to lead industrials shares 1.3 percent lower.

     The Standard & Poor’s/TSX Composite Index lost 45.02 points to 13,338.67 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has tumbled 3.2 percent in three days, the most since the height of the global equities selloff in August. The index is headed for a fifth straight monthly drop and its worst quarter in four years.

     Global markets slid as fresh signs of slowing growth emerged. A gauge of developed and developing markets retreated 0.7 percent and has fallen for five straight days since the Federal Reserve held off raising borrowing rates last week. The S&P 500 lost 0.3 percent in New York.

     Canadian equities are among the worst-performing markets in the developed world this year, led by declines among raw- materials and energy producers of at least 22 percent, amid plunging oil prices and uncertainty about global economic growth, especially in China. China is Canada’s second-largest trading partner after the U.S.

     Finning dropped 5.7 percent after Caterpillar, the world’s biggest mining machinery producer, lowered its full-year sales forecast and said it will cut as many as 5,000 jobs amid the commodities slump.

     Gold producers soared 7.6 percent, the biggest rally since January, as futures for December delivery added 2 percent to settle at a four-week high in New York. Barrick Gold Corp. surged 10 percent and Goldcorp Inc. climbed 7.4 percent.

US

By Kate Garber and Anna-Louise Jackson

     (Bloomberg) — U.S. stocks retreated, with the Standard & Poor’s 500 Index sliding to an almost three-week low, as investors clamor for further clarity on the Federal Reserve’s stimulus policy.

     Equities trimmed losses in late-afternoon trading, surging as energy shares rallied with crude oil. Stocks further pared after JPMorgan Chase & Co.’s global head of derivative and quantitative strategies said in note today that technical selling pressure from volatility targeting strategies was largely completed, and in the coming days and weeks flows may be skewed toward buying.

     The S&P 500 fell 0.3 percent to 1,932.24 at 4 p.m. in New York, erasing most of an earlier 1.5 percent slide. The benchmark dropped for the fifth time in six days since the Fed cited turbulence in financial markets as reason to stand pat on interest rates. The Dow Jones Industrial Average sank 78.57 points, or 0.5 percent, to 16,201.32. The Nasdaq Composite Index declined 0.4 percent.

     “We’re seeing a defensively-led market today,” Todd Lowenstein, who helps manage $16 billion at in Los Angeles HighMark Capital Management Inc., said by phone. “I think there are some bargains emerging in the midst of this indiscriminate selloff. A lot of the daily trading is dominated by algorithms and quants and these dislocations can occur.”

     Equities pulled back on Aug. 27 after JPMorgan’s Marko Kolanovic said that “price insensitive” program traders are likely to cause repeated selloffs. Stock reacted again on Sept. 3 as Kolanovic argued that robotic selling by quantitative investment funds tuned to volatility and price trends was only about halfway completed.

     Such traders may deliver “$10 billion in purchases over the next few days,” Kolanovic said in a note to clients Thursday. He added that if indexes add 2 to 3 percent in that time, additional technical buying may occur.

     Meanwhile, uncertainty over the Fed’s actions has made equities more volatile in past weeks. The central bank held off raising rates last Thursday and said it would consider spillover risks from global markets. Fed officials have since said a 2015 increase is still warranted.

     Chair Janet Yellen speaks in Massachusetts after markets close, with investors desperate for guidance on whether she deems the economy robust enough to withstand higher rates this year.

     “The Fed backed themselves into a corner last week by talking about China and emerging markets,” said Andrew Brenner, the head of international fixed income for National Alliance Capital Markets. “The fact that they’re adding China and emerging markets into the mix and then still thinking about raising rates between now and the end of the year is very inconsistent. It adds uncertainty to the market. That’s why equities have been performing poorly since mid-day of the Fed announcement.”

     Prior to the afternoon surge, the S&P 500 was on track to close at its lowest in a month amid more evidence that China’s slowdown and weakness in commodities are having an impact in the U.S. Caterpillar Inc. tumbled 6.3 percent after lowering its sales outlook and will cut as many as 10,000 jobs over four years in response to a slowdown in the mining and energy industries. Other industrial companies slid amid data showing orders for business equipment stalled.

     The Chicago Board Options Exchange Volatility Index, the measure of market turbulence known as the VIX, has closed above 20 for 24 straight sessions, the longest stretch since June 2012. The gauge rose 6.1 percent Thursday to 23.47.

     Traders are split on whether the Fed will raise rates this year. They are pricing in about a 41 percent chance of an increase in December, down from 49 percent as recently as Monday, and a 48 percent probability in January. Odds of higher borrowing costs by January were 64 percent on the day before last week’s Fed meeting, according to data compiled by Bloomberg.

     Meanwhile, investors continue to evaluate economic data for hints on possible Fed action. A report today showed orders for durable goods fell 2 percent in August, reflecting declines in defense and aircraft. Momentum in orders for business equipment stalled following gains the prior two months as U.S. investment took a breather amid volatility in financial markets and concerns that global growth is slowing.

     Separate data showed fewer Americans than forecast filed applications for unemployment benefits last week, a sign that a steady labor market will bolster U.S. growth. Another measure showed purchases of new homes jumped in August to a seven-year high.

     Seven of the S&P 500’s 10 main groups declined Thursday, with health-care, financial and industrial shares losing the most. Utilities, energy and consumer staples rose.

     Biotechnology shares continued to weigh on the broader health-care group. Losses for U.S. biotechs have accelerated since Democratic presidential hopeful Hillary Clinton on Monday suggested there may be “price gouging” in the market for prescription pills. Biogen Inc., Celgene Inc. and Regeneron Pharmaceuticals Inc. slumped at least 1.7 percent. The Nasdaq Biotechnology Index is headed for its worst week in four years, down 8.4 percent.

     Financial companies in the S&P 500 fell as investors speculated that low interest rates would continue to crimp profitability. The yield on the 10-Year U.S. Treasury note sank to a two-week. Morgan Stanley and Goldman Sachs Group Inc. slumped more than 1 percent. Charles Schwab Corp. and Citigroup Inc. dropped at least 1.9 percent.

     Caterpillar’s lowered outlook and cost-cutting measures hammered home to investors the troubles faced by large-equipment manufacturers and their commodity producing customers. Rival Joy Global Inc., lost 1 percent, after trimming an early 6 percent drop, to its lowest since November 2008. Another Caterpillar competitor, Deere & Co., fell 2.5 percent.    

 

Have a wonderful evening everyone.

 

Be magnificent!

Very few people in this world can reason normally.

There is a terrible tendency to accept all that is said, all that is read, and to accept it without question.

Only he who is ready to question, to think for himself, will find the truth!

To understand the currents of a river,

he who wishes to know the truth must enter the water.

Nisargadatta

As ever,

 

Carolann

 

The last of the human freedoms is to choose one’s attitudes.

                                            -Victor Frankl, 1905-1997

 

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:
 

1846    The planet Neptune was discovered by German astronomer Johann Gottfried Galle. 

AUTUMN

…Move onward , Life; we cannot stop to  grieve.
The seed demands the soil, that it may live;
This mystery of contact, strange, devout
In union, as the general scheme of love.
See, in our careful hoard of leaf-mould, sprout
Chestnuts from conkers, little pallid leaf
Of beech from mast, from acorn little oak,
Each in their germination hopefully
Intent on growing to a forest tree;
Close consequence that seed and soil provoke!
Each to his kind, majestic or minute,
Following unaware but resolute
The pre-ordained plan
That makes an oak, a daisy, or a man…

                            -V. Sackville-West

PHOTOS OF THE DAY

A child plays with a huge red ball that is installed between two buildings as part of the RedBall Project by artist Kurt Perschke in Marseille, France, Wednesday. The RedBall Project is touring Marseille from Sept. 19 to 25, at a new location each day. Jean-Paul Pelissier/Reuters

Children ride their bicycles on an empty street in Jerusalem during the Jewish holiday of Yom Kippur Wednesday. Yom Kippur, or the Day of Atonement, is the holiest of Jewish holidays, when observant Jews atone for the sins of the past year. Traffic is not allowed during the 25-hour-long period.Ammar Awad/Reuters

Market Closes for September 23^rd, 2015

Market Index	Close	Change
Dow Jones	16279.89	-50.58   -0.31%
S&P 500	1940.41	-2.33   -0.12%
NASDAQ	4752.746	-3.977   -0.08%
TSX	13384.67	-106.42
		-0.79%

International Markets

Market Index	Close	Change
NIKKEI	18070.21	-362.06
		-1.96%
HANG SENG	21302.91	-493.67
		-2.26%
SENSEX	25822.99	+171.15
		+0.67%
FTSE 100	6032.24	+96.40
		+1.62%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.489	1.482
CND. 30 Year Bond	2.242	2.234
U.S.    10 Year Bond	2.1514	2.1372
U.S. 30 Year Bond	2.9476	2.9468

Currencies

BOC Close	Today	Previous
Canadian $	0.74990	0.75350
US $	1.33351	1.32714
Euro Rate 1 Euro=		Inverse
Canadian $	1.49079	0.67078
US $	1.11795	0.89450

Commodities

Gold	Close	Previous
London Gold Fix	1131.35	1122.90
Oil	Close	Previous
WTI Crude Future	44.37	45.83

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada capped the biggest two-day drop in a month, as energy shares tumbled with the price of crude and auto-parts makers retreated amid the Volkswagen AG scandal.

     The country’s benchmark index sank 0.8 percent, adding to a 2.1 percent slide Tuesday. Magna International Inc., the auto- parts supplier whose biggest customers include Volkswagen, declined a fourth day. Energy producers fell 2.1 percent as oil in the U.S. sank 4.1 percent amid renewed demand concern.

     The Standard & Poor’s/TSX Composite Index lost 107.40 points to 13,383.69 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has tumbled 2.9 percent in two days, the most since the height of the global equities selloff in August. The index is headed for a fifth straight monthly drop and its worst quarter in four years.

     Canadian equities are among the worst-performing markets in the developed world this year, led by declines among raw- materials and energy producers of at least 23 percent, amid plunging oil prices and uncertainty about global economic growth, especially in China. China is Canada’s second-largest trading partner after the U.S.

     First Quantum Minerals Ltd. retreated 4.2 percent and Teck Resources Ltd. slipped 3.4 percent. Potash Corp. of Saskatchewan Inc. sank 4.8 percent, to a December 2008 low. The stock has slumped 17 percent in five days.

     Crescent Point Energy Corp. tumbled 6.4 percent and Encana Corp. retreated 4.2 percent as West Texas Intermediate oil sank 4.1 percent to settle at $44.48 a barrel after the Energy Information Administration said output increased for the first time in seven weeks.

     The Bloomberg Commodity Index, a basket of prices for natural resources from copper to oil and gold, fell 0.6 percent to the lowest in a month. The gauge has slumped 16 percent this year.

     Magna fell 0.9 percent, for a fourth straight retreat, and Linamar Corp. declined 1.9 percent. Volkswagen, the German automaker, has become engulfed in a scandal over falsified pollution controls that will cost the company at least 6.5 billion euros ($7.3 billion). Chief Executive Officer Martin Winterkorn resigned as a result.

     Valeant Pharmaceuticals International Inc. added 0.9 percent, rebounding from a July low. The drugmaker had slumped 10 percent in the past two days amid a broader selloff in the health-care industry after Democratic presidential candidate Hillary Clinton criticized some pricing practices.

US

By Oliver Renick and Kate Garber

     (Bloomberg) — U.S. stocks posted their fourth loss in the five days since the Federal Reserve’s rate decision, as a rout in the price of crude led commodity shares lower.

     Energy producers slid as oil sank after a U.S. inventory report signaled lower demand, while raw-materials producers slumped as a reading on Chinese manufacturing fell to a six-year low. Trading volume was light amid the Jewish holiday of Yom Kippur, with about 5.9 billion shares trading hands on U.S. exchanges, 18 percent below the three-month average.

     The Standard & Poor’s 500 Index slipped 0.2 percent to 1,938.76 at 4 p.m. in New York, sinking to its lowest level since Sept. 4. The Dow Jones Industrial Average fell 50.58 points, or 0.3 percent, to 16,279.89. The Nasdaq Composite Index declined 0.1 percent.

     “Today is going to be a little quiet,” said Matt Maley, an equity strategist at Miller Tabak & Co LLC in New York. “We have the Jewish holiday, but we also have a speech out of Yellen tomorrow. People are hoping that she’ll make some further comments that will take away some of the confusion and uncertainty that her comments from last week made.”

     Equities have been volatile in recent weeks, as the Fed’s stimulus policy, which has helped to support the bull market for more than six years, has only served to confuse investors of late. More clarity may be on the way as Fed Chair Janet Yellen is slated to deliver a lecture in Massachusetts after the markets close Thursday.

     Yellen said last week that policy makers would scrutinize slowing growth in China and emerging markets for risks that could spill over to the U.S. Still, the market is split on whether the Fed will raise rates this year. Traders are pricing in a roughly 43 percent chance of liftoff in December, while about 51 percent are betting on January.

     European Central Bank President Mario Draghi said in remarks today that it’s too soon to decide whether risks to the economic outlook warrant a step-up in the ECB’s stimulus. The macroeconomic environment is “more challenging,” Draghi said, and he vowed the ECB won’t hesitate to act if risks increase. Similar to the Federal Reserve, Draghi’s comments suggest the ECB is also having a hard time assessing the impact of slowing growth in developing countries.

     The Chicago Board Options Exchange Volatility Index jumped the most since August’s selloff on Tuesday as companies from energy to autos slumped. The measure of market turbulence known as the VIX has closed above 20 for 23 straight sessions, the longest stretch since June 2012. The gauge fell 1.4 percent Wednesday to 22.13.

     Meanwhile, the ratio of puts to calls on the Standard & Poor’s 500 Index has surged 12 percent over the past week, signaling investor appetite for protection against losses. That’s the most pronounced five-day jump since 2009, with the biggest increase coming the day after the Fed’s rate decision last week.

     “While volatility had been largely absent for the last year, it’s going to be part of our daily existence,” said Eric Wiegand, senior portfolio manager at the Private Client Reserve of US Bank in New York. “The next real material event for investors is going to be the announcement of third-quarter earnings. We’re not likely to get any economic data to resolve the uncertainty. We’ve been left in this purgatory.”

     The S&P 500 had climbed 6.8 percent from its August low before the Fed unveiled its decision last Thursday to leave interest rates near zero. The benchmark has slumped 2.8 percent since the meeting concluded, and is down 9 percent from its all- time high in May.

     Six of the benchmark index’s 10 main industries fell Wednesday, led by raw-material and energy companies. Freeport- McMoRan sank 5.6 percent and extended its post-Fed slide to almost 17 percent. Vulcan Materials Co. lost 3.7 percent, while Monsanto Co. decreased 2.5 percent. Returns from raw materials are languishing near the weakest in 16 years amid rising inventories just as demand growth slows in China, the world’s biggest consumer of everything from cotton to zinc.

     Energy shares followed a 4 percent drop in West Texas Intermediate crude. A government report showed U.S. refineries cut operating rates by the most in eight months, signaling lower demand for crude as units are shut for seasonal maintenance. Consol Energy Inc. and Transocean Ltd. sank more than 5.7 percent. Chesapeake Energy Corp. slid 5.3 percent to lose 15 percent so far this week.                       

     Among the industrials, machinery companies in the S&P 500 fell to their lowest since July 2013. The group’s recent woes can be traced back to investor concern that global economic growth is slowing, particularly in China. Caterpillar Inc., which generates more than half its revenue outside the U.S., slid 2.1 percent to a five-year low. Joy Global Inc. lost 5.6 percent to its lowest since March 2009. Overseas business makes up almost 70 percent of Joy’s revenue.

     NCR Corp. sank 4.5 percent, the most since Aug. 25, after the New York Post reported Blackstone Group LP had dropped its pursuit of the ATM machine maker.

     Technology companies climbed, led by a 2.4 percent gain in PayPal Holdings Inc. Chipmaker Qorvo Inc. added 1.5 percent after a 5.1 percent decline yesterday. Skyworks Solutions Inc., Visa Inc. and Facebook Inc. gained more than 1 percent.

     First Niagara Financial Group Inc. soared 15 percent, the most in almost seven years, following reports that the lender is exploring a possible sale or other alternatives.
 

Have a wonderful evening everyone.

 

Be magnificent!

With the clouds hanging in the air above the trees,

and the birds falling silent before the storm,

this morning brings forth serious reflection,

bringing into question the entirety of existence,

the gods themselves, and all human activity.

Krishnamurti

As ever,

 

Carolann

 

You should always go to other people’s funerals; otherwise they won’t come to yours.

                                                                                    -Yogi Berra, 1925-2015

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:  

Enjoy the last day of summer 2015 today – the autumn equinox occurs at 4:21 AM tomorrow, rendering it the first day of fall.

Significant Numbers:

63 years, 216 days: length of Queen Victoria’s reign in Britain (1876-1901) a record surpassed by Queen Elizabeth ll on September 9^th.

29,000: People in Japan who turned 100 in 2015.  So many are reaching their centenary that the government may drop the  traditional 100^th birthday gift, and engraved silver bowl, because it’s gotten so expensive.

Good News:

Seattle: sustainable seafood may be easier to find.  A pilot program called Smart Catch, supported by philanthropist Paul Allen, will certify restaurants that offer 90 percent sustainably harvested or raised fish, based on abundance, bycatch, and fishery-management practices.  Details of the offerings and their origins will be featured on menus.

London: There’s new life in the Thames.  Finally – owing largely to 1990s-era changes in waste-treatment legislation – the river, which had been pronounced “biologically dead” more than 50 years ago, now harbors marine mammals from seals and porpoises to the occasional wayward whale, as noted in a 10-year survey of public sightings compiled by the Zoological Society of  London.

London: There’s new life in the Thames.  Finally,

PHOTOS OF THE DAY

Workers travel on a speed boat past an inflatable Rubber Duck installation, by Dutch artist Florentijn Hofman, on a lake at a botanic garden in Changsha, Hunan province, China, Monday. The 18-meter-high duck will be on display from Sept. 21 to Nov. 22. Reuters

Fishermen cast their lines from a jetty as storm clouds loom in the distance in Bal Harbour, Fla., Tuesday. Wilfredo Lee/AP

Market Closes for September 22^nd, 2015

Market Index	Close	Change
Dow Jones	16330.47	-179.72   -1.09%
S&P 500	1941.64	-25.33   -1.29%
NASDAQ	4576.723	-72.232   -1.50%
TSX	13489.57	-289.87
		-2.10%

International Markets

Market Index	Close	Change
NIKKEI	18070.21	-362.06
		-1.96%
HANG SENG	21796.58	+39.65
		+0.18%
SENSEX	25651.84	-541.14
		-2.07%
FTSE 100	5935.84	-172.87
		-2.83%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.482	1.541
CND. 30 Year Bond	2.234	2.293
U.S.    10 Year Bond	2.1372	2.1958
U.S. 30 Year Bond	2.9468	3.0168

Currencies

BOC Close	Today	Previous
Canadian $	0.75350	0.75454
US $	1.32714	1.32532
Euro Rate 1 Euro=		Inverse
Canadian $	1.47637	0.67734
US $	1.11244	0.89892

Commodities

Gold	Close	Previous
London Gold Fix	1122.90	1133.25
Oil	Close	Previous
WTI Crude Future	45.83	46.68

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks tumbled the most in three weeks, joining a rout in global markets as commodities prices slumped amid escalating concern China’s growth is slowing.

     Raw-materials producers plunged 4.4 percent to the lowest level since November 2008 as copper led losses in industrial metals and zinc fell to a five-year low. Health-care shares slid a second day, while industrial stocks tumbled.

     The S&P/TSX Composite Index fell 288.35 points, or 2.1 percent, to 13,491.09 at 4 p.m. in Toronto, the biggest drop since Sept. 1. The benchmark Canadian equity gauge has lost 2.7 percent in September, which would be a fifth straight monthly drop.

     A volatility gauge for 60 of the largest, most liquid Canadian stocks jumped 9.8 percent, the most in three weeks, to 23.95. The measure has surged 17 percent in two days.

     The Asian Development Bank cut its forecast for China’s economic growth to 6.8 percent in 2015 and 6.7 percent in 2016, the second such reduction in just over two months. In July, it estimated a 7 percent expansion for this year and 6.8 percent for next.

     Global stocks slumped, with a gauge of developed and developing markets falling 1.7 percent to a two-week low. The Standard & Poor’s 500 Index sank 1.2 percent in New York while the Stoxx Europe 600 Index slumped 3.1 percent.

     In Canada, First Quantum Minerals Ltd. and Teck Resources Ltd. sank at least 7.7 percent as copper futures for December delivery tumbled 3.8 percent in New York. Canadian Natural Resources Ltd. fell 2.4 percent and Canadian Oil Sands Ltd. declined 4.9 percent as energy stocks retreated.

     The Bloomberg Commodity Index, a basket of prices for natural resources from copper to oil and gold, dropped 1 percent. The gauge has slumped 16 percent this year.

     Auto parts makers slumped to lead consumer discretionary stocks lower after German automaker Volkswagen AG said 11 million vehicles were equipped with diesel engines at the center of a widening scandal over faked pollution controls. Magna International Inc. retreated 4.9 percent, the biggest decline since January, and Linamar Corp. lost 1.8 percent.

     Valeant Pharmaceuticals International Inc. dropped 5.4 percent to a July low. The drugmaker has stumbled 10 percent in two days, joining losses among U.S. health-care stocks after Democratic presidential candidate Hillary Clinton said Monday some “price gouging” in the specialty drug market was “outrageous” in a tweet.

     Toronto-Dominion Bank lost 1.9 percent and Bank of Nova Scotia fell 1.7 percent. A gauge of the nation’s largest lenders has dropped 2.1 percent in September, headed for a fifth straight month of losses, the worst stretch since February 2009.

US

By Dani Burger and Anna-Louise Jackson

     (Bloomberg) — U.S. stocks fell, with raw-material shares dragged lower as commodities retreated, a selloff in biotechnology shares deepened and Volkswagen AG’s diesel- emissions cheating scandal continued to rattle global auto stocks.

     Fiat Chrysler Automobiles NV fell 5.7 percent, while Ford Motor Co. and General Motors Co. lost at least 1.9 percent with investors wary of industry fallout. Monsanto Co. and Alcoa Inc. dropped more than 1.3 percent amid sliding commodity prices. The Nasdaq Biotechnology Index sank 1.7 percent after losing 4.4 percent Monday. Apple Inc., Google Inc. and Facebook Inc. declined at least 1.5 percent.

     The Standard & Poor’s 500 Index lost 1.2 percent to 1,942.74 at 4 p.m. in New York, trimming a decline in the final hour after falling as much as 1.9 percent. It’s the third drop in four days, sending the gauge to a two-week low. The Dow Jones Industrial Average slid 179.72 points, or 1.1 percent, to 16,330.47. The Nasdaq Composite Index slumped 1.5 percent. About 7.3 billion shares traded hands on U.S. exchanges, in line with the three-month average.

     “With macro uncertainty and very little fundamentals overall, when you see a rise in volatility it leads to investor uncertainty and any bad news has the opportunity to shake things up,” said Joseph Betlej, who helps oversee $33 billion as vice president of Advantus Capital Management. “It’s a hangover from last week’s Fed move. Yesterday was just a little bounce.”

     Equities got a boost Monday after a quartet of Fed officials talked up prospects for higher interest rates in 2015, just days after the central bank jolted investors by citing global market turmoil and a slowdown in China as reasons for standing pat. Their remarks suggested continued improvement in the domestic economy may overshadow concerns about global conditions.

     The central bank’s bid for greater transparency about its criteria for a rate increase has left markets on edge amid an expanding Fed checklist and conflicting U.S. data. Fed Chair Yellen said last week that policy makers would scrutinize slowing growth in China and emerging markets for risks that could spill over to the U.S.

     Meanwhile, the market remains unconvinced a liftoff will take place this year after the Fed’s decision and its dovish statement. Traders are pricing in a roughly 41 percent probability of a rate increase by the Federal Open Market Committee’s December meeting, compared with 64 percent on Sept. 16 before the policy decision.                      

     Equities have been particularly volatile amid anxiety over the impact of China’s slowdown on global growth and the Fed’s intentions. The Chicago Board Options Exchange Volatility Index has closed above 20 for 22 straight sessions, the longest stretch since June 2012. The measure of market turbulence known as the VIX jumped 11 percent Tuesday, the most in a month, to 22.44.

     Several technical charts are also sounding warning signals that the worst of equities turmoil may not be over. A downward sloping neckline in a head-and-shoulders pattern have formed in the Dow. The index and the Dow Jones Transportation Average also breached the low from last October, flashing a so-called Dow Theory sell signal.

     “On days when there’s not much economic data, that can lead to bigger moves,” said Brent Schutte, senior investment strategist at BMO Global Asset Management in Chicago, which manages $250 billion. “People are selling or buying off things that aren’t grounded in fundamentals.”

     The S&P 500 had climbed 6.8 percent from its August low before the Fed unveiled its decision last Thursday to leave interest rates near zero. The benchmark has slumped 2.6 percent since the FOMC meeting concluded, and is down 8.8 percent from its all-time high in May.

     All of the S&P 500’s 10 main groups declined Tuesday, with raw-materials and technology companies falling more than 1.5 percent. Leading the drop in materials, Mosaic Co. fell 7 percent to its lowest level since January 2009. The largest U.S. producer of potash fertilizer said it plans to reduce output as low crop prices continue to erode farmer demand for agricultural products.

     Renewed worries about slower growth in China pressured commodity prices, sending Alcoa down 4 percent, and steel company Nucor Corp. sliding 2.9 percent. The Asian Development Bank reduced its China growth forecasts for the second time in just over two months. Newmont Mining Co. lost 6.3 percent as gold prices fell.

     Semiconductors fell for a fourth straight session, the longest losing streak in a month. Applied Materials Inc., Micron Technology Inc. and Qorvo Inc. slumped more than 2.7 percent, while Intel Corp. fell 1.7 percent.

     Biotech shares extended declines sparked yesterday after Democratic presidential candidate Hillary Clinton criticized high drug prices. Today she said she’d implement programs to force the industry to concede tens of billions of dollars a year in tax breaks, lower prices and increase research spending. Celgene Corp. and Mylan NV paced the slide in the Nasdaq Biotech Index, falling more than 1.2 percent.

     Among consumer discretionary shares, the influence of the Volkswagen scandal was visible. Parts supplier BorgWarner Inc. dropped 7.6 percent, the most in four years, and Delphi Automotive Plc fell 3.6 percent. CarMax Inc. lost 4.7 percent, its biggest drop in a year, even after the used-car retailer’s quarterly profit exceeded analysts’ estimates.

     Weakness in homebuilders also weighed on consumer stocks. An S&P gauge of builder shares fell 2.7 percent, the most since Aug. 25. Lennar Corp., PulteGroup Inc. and Toll Brothers Inc. slid at least 2.2 percent.

     Goldman Sachs Group Inc. lost 2 percent, ranking as the second-worst performer in the Dow. Chief Executive Lloyd Blankfein said he has a “highly curable” form of lymphoma and will undergo chemotherapy over the next several months. Among financial stocks in the S&P 500, Morgan Stanley and BlackRock Inc. were among the biggest losers, down more than 2.5 percent.

The KBW Bank Index sank 1.3 percent on its way to a four-week low.

     The Dow Jones Transportation Average fell 2.5 percent, its biggest slide since Aug. 24. Kirby Corp., which operates a fleet of inland tank barges that transport commodities such as industrial chemicals, fell 4.1 percent. Railroads Kansas City Southern and Norfolk Southern Corp. lost more than 2.7 percent. A Bloomberg gauge of U.S. airlines slid 3.1 percent, the most in a month.

     Staples Inc. and Office Depot Inc. both tumbled at least 4.1 percent, hurt by renewed concerns that the Federal Trade Commission will block the companies’ merger plan.

     Weatherford International Plc jumped 11 percent after the oil-services company scrapped a proposed $1 billion sale of shares and convertible debt. The sale was announced yesterday, and Weatherford’s share price tumbled 17 percent in response.
 

Have a wonderful evening everyone!

 

Be magnificent!

The outward freedom that we shall attain will only be in exact proportion

to the inward freedom to which we may have grown at any given moment.

Mahatma Gandhi

As ever,

 

Carolann

 

We tend to think of meditation in  only one way.  But life itself is a meditation.

                                                                            -Raul Julia, 1940-1994

 

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