Category: Events

Dear Friends,

Tangents:

On this day in 1959, the first photo of Earth from space was transmitted  by the US satellite Explorer VI.  However, it would take years for the general public to see the pictures of Earth from space.  Stewart Brand, founder of Whole Earth Catalogue:  “In 1966, I conceived and sold buttons which read, ‘Why Haven’t We Seen A Photograph of the Whole Earth Yet?’   Legend has it that this accelerated NASA’s making good color photos from distant space….We saw the photograph of the Earth from space that we got from the Apollo program in 1969.  The first Earth Day was in 1970.  This is not an accident.  The ecology movement really took off once we had those photographs from space.”

So, it was amazing to pick up the Globe & Mail this morning and see the photo and headline “LOOKING ON THE DARK SIDE.”  A camera on a NASA satellite captured this rare image of the far side of the moon, illuminated by the Sun as it crossed between the spacecraft and Earth, from a  distance of 1.6 million kilometers.

Dark side of the moon revealed by Nasa camera a million miles from Earth – video

PHOTOS OF THE DAY

Crowds watch during a mass launch at the Bristol International Balloon Fiesta in south west England on Friday. The largest hot air balloon festival in Europe takes place over four days and is in it’s 37th year. Toby Melville/Reuters

Volunteers carry milk churns as they help land artist Gerard Benoit a la Guillaume to form an art installation at the Chenau de Mayen in the resort of Leysin, Switzerland on Friday. More than 80 milk churns were placed between the Tour d’Ai and the Tour de Mayen summits at an altitude of 6,561 feet above sea level under the direction of the artist, to be photographed for his ongoing art project entitled ‘Milk churns without borders’. Denis Balibouse/Reuters

Market Closes for August 7th, 2015

Market Index	Close	Change
Dow Jones	17373.45	-46.30     -0.27%
S&P 500	2076.56	-7.00     -0.34%
NASDAQ	5043.543	-12.897     -0.26%
TSX	14292.77	-113.14
		-0.79%

International Markets

Market Index	Close	Change
NIKKEI	20724.56	+60.12
		+0.29%
HANG SENG	24552.47	+117.19
		+0.73%
SENSEX	28236.39	-61.74
		-0.22%
FTSE 100	6718.49	-28.60
		-0.42%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.424	1.449
CND. 30 Year Bond	2.093	2.126
U.S.    10 Year Bond	2.1712	2.2178
U.S. 30 Year Bond	2.8260	2.8921

Currencies

BOC Close	Today	Previous
Canadian $	0.76122	0.76265
US $	1.31369	1.31122
Euro Rate 1 Euro=		Inverse
Canadian $	1.43955	0.69466
US $	1.09581	0.91257

Commodities

Gold	Close	Previous
London Gold Fix	1093.50	1089.75
Oil	Close	Previous
WTI Crude Future	44.00	44.66

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell for a second day despite better-than-forecast job gains, as energy producers tumbled with crude for a sixth weekly drop and financial shares retreated.

     Energy companies sank 1.8 percent as a group, while crude futures fell 1.8 percent in New York, pushing the weekly loss to 6.9 percent on speculation the global supply glut will be prolonged. Royal Bank of Canada and Toronto-Dominion Bank declined at least 0.7 percent after also slipping Thursday.

     The Standard & Poor’s/TSX Composite Index fell 103.21 points, or 0.7 percent, to 14,302.70 at 4 p.m. in Toronto. The gauge has lost 1.2 percent this week and fallen 2.3 percent in 2015, one of only three developed markets in negative territory for the year among the 24 tracked by Bloomberg.

     The Bloomberg Commodity Index, which tracks a basket of prices for raw materials including gold, natural gas and crude, was little changed near 13-year lows after a two-day slide. Energy and materials are the worst-performing industries in Canada this year and account for almost 30 percent of the benchmark Canadian equity gauge.

     The resource-dominated S&P/TSX had added 3.6 percent during a six-day rally that was the longest since April. The advance follows a seven-day rout of 5 percent that was the longest since 2011.

     Valeant Pharmaceuticals International Inc. slipped 0.1 percent, falling for a second day. The drug maker tracked back- to-back declines among U.S.-listed biotechnology and health-care shares.

     Canada gained 6,600 jobs during the month, leaving the nation’s unemployment rate unchanged at 6.8 percent, helped by increases in part-time and self-employed work. U.S. payrolls added 215,000 jobs in July, keeping the Federal Reserve on the path toward raising interest rates as soon as next month.

     Pengrowth Energy Corp. tumbled 15 percent to an all-time low, and Crescent Point Energy Corp. retreated 4.3 percent to lead energy shares lower. Great-West Lifeco Inc. and Manulife Financial Corp. lost at least 1.2 percent to help pace declines among financial-services companies.

US

By Joseph Ciolli and Lu Wang

     (Bloomberg) — U.S. stocks fell, with the Dow Jones Industrial Average posting its longest slide since 2011, amid declines in commodity producers while data showed continued progress in the labor market.

     Energy companies dropped as oil sank to a four-month low, while raw-materials fell the most in two weeks. Hershey Co. slid 2.7 percent after quarterly revenue missed estimates. American Express Co. rallied 6.3 percent as an activist fund was said to have amassed a stake in the company. Nvidia Corp. jumped 12 percent after predicting sales that may exceed some estimates.

     The Dow slipped 46.37 points, or 0.3 percent, to 17,373.38 at 4 p.m. in New York, falling for a seventh day to a six-month low. The Standard & Poor’s 500 Index fell 0.3 percent to 2,077.57, above its average price during the past 200 days. The Nasdaq Composite Index sank 0.3 percent, while the Russell 2000 Index lost 0.7 percent, and briefly erased its gain for the year.

     “I’m not surprised to see the market down given the downward bias we’ve seen the last couple of days,” said Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles. “If anything, the report slants the bias towards a September rate hike, given the strength of the jobs numbers.”

     Data today showed employers added 215,000 jobs in July and the unemployment rate held at a seven-year low of 5.3 percent. The gain in payrolls followed a 231,000 advance in June that was bigger than previously estimated. While the report also showed a pickup in hours worked, average hourly earnings climbed a less- than-forecast 2.1 percent from a year earlier.     The Federal Reserve is assessing the strength of the U.S. recovery from an early year slowdown as policy makers debate whether the world’s largest economy can withstand the first rate rise since 2006. Traders were pricing in a 54 percent probability of the first increase next month.

     “There are probably still a fair number of investors that don’t quite believe the Fed is really going to raise rates,” said Bob Baur, chief global economist at Principal Global Investors in Des Moines, Iowa. The firm oversees $346.2 billion. “This report does nothing to deter the Fed from doing that in September.”

     Investors are also watching corporate earnings to gauge the economy’s health. Some 88 percent of S&P 500 members have released results this season, with three-quarters beating profit estimates and half topping sales projections. Analysts now forecast a more modest drop in second-quarter earnings, calling for a 2.1 percent fall instead of a 6.4 percent decline a month earlier.

     The S&P 500 dropped 1.3 percent this week amid declines among media and biotechnology shares. Commodity producers have also slumped and Apple Inc. fell into a correction. The benchmark measure is up 0.9 percent this year, trailing most developed-market gauges. The Dow fell 1.8 percent in the week, with Walt Disney Co. leading declines.

     While data showed the labor market chugged along at a pace policy makers want to see in order to raise rates, tepid gains in hourly earnings indicate little momentum in wage growth. A rout in commodities from industrial metals to oil continued on signs of a slowdown in China, while selling accelerated in shares of some of the bull market’s biggest winners from biotechnology to media.

     The Chicago Board Options Exchange Volatility Index fell 2.8 percent Friday to 13.39, after a 10 percent jump yesterday. The gauge, known as the VIX, was up 10 percent this week, after posting its biggest monthly drop since February. About 6.8 billion shares traded hands on U.S. exchanges, 5 percent above the three-month average.

     Seven of the S&P 500’s 10 main groups fell today, with energy, materials and consumer staples sliding the most. Utilities rose for the 10th time in 11 sessions to a more than two-month high.

     Energy shares in the benchmark index lost 1.9 percent, with crude oil posting a sixth weekly decline as West Texas Intermediate hit its lowest since March. Consol Energy Inc. tumbled 8 percent to an 11-year low. EOG Resources Inc. and Marathon Oil Corp. dropped more than 5 percent.

     CF Industries Holdings Inc. decreased 6.4 percent, the most in more than three years, to lead raw-materials shares lower. CF yesterday agreed to acquire European and North American assets from OCI NV for about $8 billion. The company said the deal will create the world’s largest publicly traded producer of nitrogen fertilizer.

     Miner Freeport-McMoRan Inc. slid for the sixth time in seven sessions, down 6.1 percent to its lowest since December 2008. Alcoa Inc. and DuPont Co. retreated more than 1.9 percent.

     Hershey weighed on the consumer-staples group amid its biggest decline in seven weeks. Supermarket chain Kroger Co. and Mondelez International Inc. fell at least 1.5 percent. Wal-Mart Stores Inc. slipped 2.1 percent, the most in more than two months.

 

     The Nasdaq Biotechnology Index sank 0.7 percent to a one- month low, after losing 4 percent Thursday. Biogen Inc. and Vertex Pharmaceuticals Inc. slid more than 1.2 percent. The index trimmed an earlier drop of as much as 2.5 percent as Amgen Inc. erased a 1.9 percent slide to rally 1.7 percent, and Endo International Plc added 2.8 percent after falling 2.3 percent.

     Twitter Inc. dropped for a third day, down 1.8 percent to an all-time low. The shares are down 26 percent after the social-media company reported financial results last month.

     American Express jumped the most in four years after people with knowledge of the matter said ValueAct Capital Management has amassed a stake in the credit-card issuer and is considering pursuing shareholder-friendly changes. The Dow member’s gain helped offset some of the index’s slide to the lowest since February, with AmEx contributing 32 points in a positive direction.

 

Have  a wonderful weekend everyone.

 

Be magnificent!

In the song of the rushing torrent,

hold onto the joyful assurance:

I will become the sea.

And this is not a vain supposition;

it is absolute humility, because it is the truth.

Rabindranath Tagore

As ever,

 

Carolann

 

Keep your fears to yourself, but share your courage with others.

                                    -Robert Louis Stevenson, 1850-1894

 

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

Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On Aug. 6, 1945, the United States dropped an atomic bomb on Hiroshima, Japan, that instantly killed an estimated 66,000 people in the first use of a nuclear weapon in warfare.

Colonel Tibbetts, USAAF, drops the first atomic bomb on Hiroshima and wrote later that day, August 6^th, 1945:

The problem after the release of the bomb is not to proceed forward but to turn away.  As soon as the weight had left the aeroplane I immediately went into this steep turn and we tried then to place distance between ourselves and the point of impact.  In this particular case that bomb took fifty-three seconds from the time it left the aeroplane until it exploded and this gave us adequate time of course to make the turn.  We had just made the turn and rolled out on level flight when it seemed like somebody had grabbed hold of my aeroplane and gave it a real hard shaking because this was the shock wave that had come up.  Now after we had been hit by a second shock wave not quite so strong as the first one I decided we’ll turn around and go back and take a look.  The day was clear when we dropped that bomb, it was a clear sunshiny day and the visibility was unrestricted.  As we came back around again facing the direction of Hiroshima we saw this cloud coming up.  The cloud by this time, now two minutes old, was up at our altitude.  We were 33,000 feet at this time and the cloud was up there and continuing to go right on up in a boiling fashion,, as if it was rolling and boiling.  The surface was nothing but a black boiling, like a barrel of tar.  Where before there had been a city with distinctive houses, buildings and everything that you could see from our altitude, now you couldn’t see anything except a black boiling debris down below.

Before the war, and especially before the Boer War, it was summer all the year round.  –George Orwell.

PHOTOS OF THE DAY

Children release lanterns into the Motoyasu river in front of the Atomic Bomb Dome Thursday to remember the atomic bomb victims on the 70th anniversary of the bombing of Hiroshima in western Japan. Bells tolled and thousands bowed their heads in prayer. The anniversary highlighted rising tensions over Japan’s moves away from its pacifist constitution. Thomas Peter/Reuters

Local residents hold paper lanterns in front of the Atomic Bomb Dome during a procession Wednesday commemorating the victims of the atomic bombing in Hiroshima, western Japan. On Thursday, Japan will mark the 70th anniversary of the attack on Hiroshima, when the US dropped an atomic bomb on Aug. 6, 1945, killing about 140,000 by the end of the year in a city of 350,000 residents. It was the world’s first nuclear attack. The Atomic Bomb Dome, or Genbaku Dome, was the only structure left standing in this district of the city and has been preserved as a peace memorial. Thomas Peter/Reuters

Market Closes for August 6^th, 2015

Market Index	Close	Change
Dow Jones	17419.75	-120.72     -0.69%
S&P 500	2083.69	-16.15     -0.77%
NASDAQ	5056.441	-83.503     -1.62%
TSX	14406.91	-96.08
		-0.66%

International Markets

Market Index	Close	Change
NIKKEI	20664.44	+50.38
		+0.24%
HANG SENG	24375.28	-138.88
		-0.57%
SENSEX	28298.13	+75.05
		+0.27%
FTSE 100	6747.09	-5.32
		-0.08%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.449	1.473
CND. 30 Year Bond	2.126	2.154
U.S.    10 Year Bond	2.2178	2.2699
U.S. 30 Year Bond	2.8921	2.9437

Currencies

BOC Close	Today	Previous
Canadian $	0.76265	0.75883
US $	1.31122	1.31782
Euro Rate 1 Euro=		Inverse
Canadian $	1.43234	0.69816
US $	1.09237	0.91544

Commodities

Gold	Close	Previous
London Gold Fix	1089.75	1085.10
Oil	Close	Previous
WTI Crude Future	44.66	45.15

Money is a terrible master but an excellent servant. –P.T. Barnum, 1810-1891

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, snapping the longest rally in four months, as the nation’s largest lenders declined for the second time in three days and Valeant Pharmaceuticals International Inc. retreated with U.S. health-care companies.

     Equities fell as Valeant, the largest company in the Standard & Poor’s/TSX Composite Index by market value, slumped 6 percent after four days of gains. The drug maker fell the most in a year, and joined a 2.1 percent slide among health-care stocks in the S&P 500. The Nasdaq Biotechnology Index slumped 4 percent.

     The S&P/TSX fell 97.08 points, or 0.7 percent, to 14,405.91 at 4 p.m. in Toronto. The gauge has fallen 1.6 percent in 2015, one of only three developed markets in negative territory for the year among the the 24 tracked by Bloomberg.

     Energy and materials producers rebounded, erasing earlier losses despite further declines in oil prices. U.S.-listed energy companies gained as offshore driller Transocean Ltd. rallied after posting better-than-estimated profits. Energy and materials are the worst-performing industries in Canada this year and account for almost 30 percent of the benchmark Canadian equity gauge.

     The Bloomberg Commodity Index, which tracks a basket of prices for raw materials including gold, natural gas and crude, slipped 0.3 percent, after paring an earlier 0.6 percent decline.

     The resource-dominated S&P/TSX had added 3.6 percent during a six-day rally that was the longest since April. The advance follows a seven-day rout of 5 percent that was the longest since 2011.

     Bank of Nova Scotia sank 1.9 percent and Toronto-Dominion Bank retreated 0.8 percent as financial services stocks declined 0.7 percent as a group.

     Barrick Gold Corp. rallied 3.8 percent to lead an advance among gold producers after intensifying efforts to strengthen its balance sheet.

     Trilogy Energy Corp. lost 1.3 percent, trimming an earlier drop of 16 percent after reporting a second-quarter loss Wednesday. SNC-Lavalin Group Inc. tumbled 8.4 percent, the most since February 2012, after posting a second-quarter profit that missed analysts’ estimates, dragged down by losses in the engineering and construction unit.

US

By Callie Bost

     (Bloomberg) — The Standard & Poor’s 500 Index declined for the fourth time in five sessions, as biotechnology shares tumbled while media companies sold off on disappointing results from Viacom Inc. and Twenty-First Century Fox Inc.

     The Nasdaq Biotechnology Index dropped 4 percent, snapping a five-day winning streak. Viacom and Fox slumped at least 6.4 percent after joining a parade of media companies reporting disappointing results. Keurig Green Mountain Inc. plunged 30 percent after cutting its sales and profit forecasts. Transocean Ltd and Michael Kors Holdings Ltd. added at least 10 percent after posting better-than-estimated results.

     The S&P 500 lost 0.8 percent to 2,083.56 at 4 p.m. in New York, falling below its average prices during the past 50 and 100 days. The Dow Jones Industrial Average fell 120.72 points, or 0.7 percent, to 17,419.75. The Dow fell for a sixth day, its longest losing streak since October. The Nasdaq Composite Index decreased 1.6 percent, the most in almost a month.

     “It’s like panic buying and panic selling,” said Walter Todd, who oversees about $1.1 billion as chief investment officer for Greenwood Capital Associates. “The reactions you’re seeing in the marketplace are just very violent for companies reporting earnings, sometimes to the upside, sometimes to the downside.”

     Media shares were battered for a second day, with quarterly earnings marked by shrinking U.S. ad sales and profits propped up by stock buybacks. Viacom, owner of MTV, Nickelodeon and Comedy Central, posted a third-quarter revenue decline that was wider than analysts had forecast.                      

     Walt Disney Co. slid another 1.8 percent after tumbling 11 percent Wednesday following its results. The shares marked their worst back-to-back drop in more than six years. The Bloomberg U.S. Media Index lost 2 percent for its biggest two-day decline since September 2011.

     Media stocks have been the darlings of the U.S. bull market that began 6 1/2 years ago. Since global equities bottomed in March 2009, the 15-member S&P 500 Media Industry Index had risen 464 percent, second only to automakers. Within the gauge, CBS and Tegna Inc. — up more than 15 fold over the period — are among companies with the 20 biggest gains.

     About 85 percent of S&P 500 members have released earnings figures, with three-quarters beating profit estimates and half topping sales projections. Analysts now call for a 2.8 percent drop in second-quarter earnings, shallower than July 10 estimates for a 6.4 percent fall.                       

     Along with corporate earnings, investors are also watching economic reports to gauge when the Fed will increase interest rates. A report today showed jobless claims rose by 3,000 to 270,000, hovering near four-decade lows as employers hold on to more workers in response to increased demand following a slump in early 2015.

     Friday’s monthly payroll data will be parsed for indications on the likelihood of a September rate increase, with a particular interest in any signs of stronger wage growth. The government’s report is projected to show employers took on 225,000 workers last month, while the jobless rate held at a seven-year low of 5.3 percent.

     “If the number is above 225,000 and there are signs of wage pressure, then good news will certainly be met with a negative response,” said Chad Morganlander, a money manager at Stifel, Nicolaus & Co. in Florham Park, New Jersey.

     The S&P 500 snapped a three-day losing streak Wednesday amid better-than-expected earnings from technology companies. The gauge is coming off its best monthly gain since February, and closed Thursday 2.2 percent below its record set in May.                        

     The Chicago Board Options Exchange Volatility Index rose 10 percent Thursday to 13.77. The gauge, known as the VIX, in July posted its biggest monthly drop since February, down more than 33 percent. About 7.8 billion shares traded hands on U.S. exchanges, 21 percent above the three-month average.

     Eight of the S&P 500’s 10 main groups fell, with media shares pushing the consumer discretionary group down 1.3 percent, while biotechs dragged health-care 2.1 percent lower. Energy shares advanced 1.6 percent, despite oil’s retreat to its lowest in more than four months.

     Allergan Plc lost 5.1 percent, the most since October. The drug maker’s Actavis unit received a subpoena from the U.S. Justice Department seeking information on the marketing and prices of its generic drugs. Amgen Inc., Celgene Corp. and Biogen Inc. decreased at least 3.5 percent.

     Among consumer discretionary companies, Viacom plummeted 14 percent, the biggest drop in more than six years, sending shares to their lowest since December 2011. Fox sank 6.4 percent, paring an earlier 14 percent drop, to a two-year low. Time Warner Inc. slid 0.8 percent, nearly erasing an earlier 7 percent fall, after a 9 percent loss Wednesday following its results.  Chipmakers Qorvo Inc. and Skyworks Solutions Inc. sank more than 3.4 percent. Microsoft Corp. fell for the first time in four sessions, losing 2 percent.

     Tesla Motors Inc. slumped 8.9 percent, its largest retreat since September. Chief Executive Elon Musk dialed back his forecast for 2015 vehicle deliveries, saying that getting Tesla’s new sport utility vehicle’s middle-row seats just right is proving thornier than expected.

     Transocean Ltd. climbed 11 percent, the most since April to pace gains in energy. The world’s largest offshore rig owner posted earnings that exceeded expectations after cutting costs to confront declining demand for drillships. Chevron Corp. and Exxon Mobil Corp. rose for the first time in six days, up at least 1.2 percent to lead the Dow.                        

     Chesapeake Energy Corp. soared 17 percent, the biggest gain since October. The company is in discussions to sell more assets or stakes in oil fields as the prospect of a prolonged energy- market slump imperils cash flow.

     CF Industries Holdings Inc. rose 2.2 percent, after agreeing to acquire European and North American assets from OCI NV for about $8 billion. CF said the deal will create the world’s largest publicly traded producer of nitrogen fertilizer.

     Herbalife Ltd. climbed 17 percent to its highest in a year.  The nutrition company that’s battling hedge fund manager Bill Ackman had a second-quarter profit that beat analysts’ estimates, and it raised its forecast for the year, helped by sales gains in China.
 

Have a wonderful evening everyone.

 

Be magnificent!

 

When a man possesses in his being the notion of God, that is the miracle of miracles.

Rabindranath Tagore

As ever,

 

Carolann

 

If I had only known, I would have been a locksmith.

                                -Albert Einstein, 1879-1955

 

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 Poem:

AIR MAIL

 

On a hunt for a mailbox

I carried the letter through town.

In the great forest of stone and concrete

this lost butterfly fluttered.

 

The stamp’s flying carpet

the address’s reeling letters

 plus my sealed-in truth

now winging over the ocean.

 

The Atlantic’s crawling silver.

The cloudbanks.  The fishing boat

like a spat-out olive pit.

And the wakes’ pale scars.

 

Down here work goes slowly.

I often sneak peeks at the clock.

The tree-shadows are black figures

in the greedy silence.

 

The truth is there on the ground

but no one dares to take it.

The truth is out  on the street.

No one makes it their own.

 

By Tomas Transtromer

(Translated by Patty Crane from Swedish)

 

PHOTOS OF THE DAY

A costumed participant arrives at the Gamescom computer game fair in Cologne, Germany, Wednesday. Hundreds of thousands visitors will enjoy one of the world’s largest computer and video game events which lasts until Sunday. Martin Meissner/AP

The sun rises over the skyline in Toronto, Tuesday. Mark Blinch/Reuters

Market Closes for August 5, 2015

Market Index	Close	Change
Dow Jones	17540.47	-10.22     -0.06%
S&P 500	2099.84	+6.52   +0.31%
NASDAQ	5139.945	+34.399   +0.67%
TSX	14502.99	+11.94
		+0.08%

International Markets

Market Index	Close	Change
NIKKEI	20614.06	+93.70
		+0.46%
HANG SENG	24514.16	+108.04
		+0.44%
SENSEX	28223.08	+151.15
		+0.54%
FTSE 100	6752.41	+65.84
		+0.98%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.473	1.427
CND. 30 Year Bond	2.154	2.108
U.S.    10 Year Bond	2.2699	2.2213
U.S. 30 Year Bond	2.9437	2.108

Currencies

BOC Close	Today	Previous
Canadian $	0.75883	0.75807
US $	1.31782	1.31914
Euro Rate 1 Euro=		Inverse
Canadian $	1.43673	0.69601
US $	1.09025	0.91722

Commodities

Gold	Close	Previous
London Gold Fix	1085.10	1090.65
Oil	Close	Previous
WTI Crude Future	45.15	45.74

 Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks capped the longest rally in four months as an unexpected rebound in exports boosted optimism in the economy.

     The Standard & Poor’s/TSX Composite Index eked out a sixth day of gains for the longest rally since April. While the gauge has added 3.6 percent during the recent run, the advance follows a seven-day rout of 5 percent that was the longest since 2011.

     Equities climbed as much as 0.9 percent Wednesday after data showed Canadian exports surged in June at the fastest pace in almost a decade, providing signs the economy may be rebounding from its downturn. Stocks pared gains as energy and materials producers continued a slump that has made them the worst-performing in Canada this year.

     “The export numbers caught a lot of people off-guard,” said Greg Taylor, a fund manager at Aurion Capital Management in Toronto. His firm manages about C$6.6 billion. “We will have to look for more of that. It’s hard to look at just one point in time.”

     The S&P/TSX added 11.94 points, or 0.1 percent, to 14,502.99 at 4 p.m. in Toronto. The gauge has fallen 0.9 percent in 2015, one of only three developed markets in negative territory for the year among the the 24 tracked by Bloomberg.

     Canadian exports surged 6.3 percent in June, the biggest gain since December 2006, snapping five straight months of declines, according to data from Statistics Canada.

     Lenders, which account for about one-third of the index, paced gains as Royal Bank of Canada climbed 0.9 percent and Bank of Nova Scotia added 0.5 percent.

     Materials producers fell the most, losing 1.4 percent. Tahoe Resources Inc. tumbled 6.1 percent after its chief executive officer stepped down for personal reasons. Barrick Gold Corp. sank 3.5 percent to a 1989 low. Semafo Inc. rose 2.9 percent after second-quarter earnings topped estimates.

     Energy producers slipped 0.8 percent, erasing earlier gains of as much as 1.9 percent. The Bloomberg Commodity Index declined 0.3 percent.

US

By Annelise Alexander and Oliver Renick

     (Bloomberg) — U.S. stocks rose for the first time in four days, amid better-than-estimated earnings from technology companies while services-industry data indicated the economy is on track for faster growth.

     Cognizant Technology Solutions Corp. and First Solar Inc. jumped at least 6.4 percent after their profits exceeded analysts’ forecasts. Priceline Group Inc. added 5.2 percent as its earnings topped estimates. Apple Inc. climbed for the first time in six sessions. Walt Disney Co. slid 9.2 percent after its quarterly sales missed projections, and energy companies erased earlier gains along with oil.

     The Standard & Poor’s 500 Index rose 0.3 percent to 2,099.84. at 4 p.m. in New York, after slipping 0.7 percent over the previous three sessions. The Dow Jones Industrial Average sank 10.22 points, or 0.1 percent, to 17,540.47, under Disney’s 75-point drag. The Nasdaq Composite Index rose 0.7 percent. About 7.2 billion shares traded hands on U.S. exchanges, 11 percent above the three-month average.

     “The market has been under a little bit of pressure looking for a reason to go back up,” said John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York. “The market’s moving in the right direction. A slow, steady recovery is probably a good thing. The single most important factor affecting stock markets is what the Fed is doing.”

     Investors are watching economic reports to gauge when the Federal Reserve will increase interest rates, a decision it has forecast for this year. Data today showed service providers from restaurants to real estate agencies expanded in July at the strongest pace in a decade, putting the U.S. economy on track for faster growth. The share of services companies boosting employment was the highest since records began in 1997.                          

     A separate report Wednesday from ADP Research Institute said companies added fewer workers than expected to payrolls in July, casting doubt on whether labor-market gains can accelerate beyond this year’s current pace. The government’s monthly job report on Friday is projected to show employers took on 225,000 workers last month, while the jobless rate held at a seven-year low of 5.3 percent.

     Fed Governor Jerome Powell said there is more labor-market slack in the economy than the jobless rate indicates, during an interview on CNBC. He also said financial assets aren’t in bubble territory, and reiterated that a shallow path for rate increases would be appropriate.

     “We’re in a summer lull, having to digest the Fed apparently getting close to making its own moves, and it’s going to be easy with short-term sentiment to move this market around,” said Steve Bombardiere, an equity trader at Conifer Securities LLC in New York. “What you’d really like to see is the Fed saying the economy is strong and we’re going to raise rates but you’re not seeing that.”                        

     Investors are also weighing corporate earnings for hints on the economy’s health. Four out of five S&P 500 members have reported results this season, with about three-quarters beating profit estimates and half topping sales projections. Analysts now call for a 2.8 percent drop in second-quarter earnings, shallower than July 10 estimates for a 6.4 percent fall.

     Equities pared earlier gains as energy companies declined and raw-material shares trimmed their advance. Chesapeake Energy Corp. tumbled 12 percent following a 4.5 percent jump today. Oil fell to a four-month low, after rallying 2 percent, amid signs of ample crude stockpiles. Miner Freeport-McMoRan Inc. lost 1 percent, reversing a 7.5 percent climb that came amid its plan to cut back on oil and gas investments.

     “Commodities, mostly oil, have turned around from being up earlier today,” said Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC. “The combination of some of the growth issues out of China and the strength of the dollar as we’re getting closer to a rate hike has been causing this overall weakness in commodities.”                          

     The Chicago Board Options Exchange Volatility Index fell 3.8 percent Wednesday to 12.51. The gauge, known as the VIX, in July posted its biggest monthly drop since February, down more than 33 percent.

     Seven of the S&P 500’s 10 main industries advanced today, with technology and consumer-staples shares rising the most, while energy and consumer-discretionary companies retreated.

     Gains in First Solar and Cognizant led the strongest rise in the tech group in almost three weeks. First Solar jumped the most since March 2014, while Cognizant had its best increase since November. Motorola Solutions Inc. advanced 6.3 percent to a four-month high after quarterly profit topped estimates, and the communications-equipment maker is receiving a $1 billion investment from private-equity firm Silver Lake.                       

     Activision Blizzard Inc. soared 12 percent to a record as sales and profit beat analysts’ estimates on the strength of video-game franchises such as Call of Duty and Skylanders.

     Fellow video-game maker Electronic Arts Inc. added 4.7 percent, also to an all-time high. Sony Corp., EA and Microsoft Corp. predict the releases of potential blockbusters such as Star Wars Battlefront, Halo 5 and FIFA 2016 will fuel holiday sales of games and consoles.

     H&R Block Inc. rose the most since March 2013 after receiving regulatory approval to sell its bank unit BofI Federal Bank, a deal that would end Federal Reserve oversight and capital restrictions. The shares surged 8.9 percent to a record.

     Wal-Mart Stores Inc.’s 2.4 percent increase, the biggest since January, paced a rise among consumer staples. Mondelez International Inc., Kellogg Co. and PepsiCo Inc. each gained at least 1.4 percent.

     Walt Disney weighed on the consumer discretionary group, as well as other media companies, falling the most in more than six years after posting quarterly sales that fell short of analysts’ estimates and cutting its forecast for cable-TV profit.

     Time-Warner Inc. slid 9 percent, the most in a year, as the media company kept its full-year profit forecast unchanged after earnings topped analysts’ estimates by a wide margin last quarter. The Bloomberg U.S. Media Index lost 5 percent, its biggest drop in four years.

     Genworth Financial Inc. tumbled after the insurer that has been selling units to rebuild capital said it will probably not get rid of its entire life and annuity operation. Shares dropped 20 percent, the most since November and extended the decline for the year to 34 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

Never say, o Lord, I am a miserable sinner.  Who will help you?

It is you who must help the universe.

Swami Vivekananda

As ever,

Carolann

 

Peace cannot be kept by force; it can only be achieved by understanding.

                                                             -Albert Einstein, 1879-1955

 

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

 

Tel: 778.430.5808

(C): 250.881.0801

Toll Free: 1.877.430.5895

Fax: 778.430.5828

Dear Friends,

Tangents:

What a fabulous weekend we just spent in Vancouver.…when we arrived on Saturday morning, the streets downtown were buzzing with people.  Many visitors had descended on the city to take part in the gay pride parade which took place on Sunday – one of the largest in the world.  Taylor Swift was in town to perform Saturday night.  The last of the fireworks in English Bay Saturday night too (Canada won!).

We walked the seawall to Stanley Park –  it’s amazing how the area from the Harbour Air sea terminal to the beginning of Stanley Park has been transformed in the past decade with restaurants, seating benches for sea-gazing, marinas….Thank you Lord Stanley for the foresight to create Stanley Park – it is so wonderful to walk through on a brilliant summer’s day.

One of the highlights of the weekend was attending the 2015 Araxi Long Table dinner last night which was held at Bard on the Beach in Vanier Park.  There were 250 people dining together outside  at one long communal table set up outside on the lawn overlooking Vancouver’s West End and downtown.  The four course dinner was designed by all of Toptable Groups five executive chefs from Araxi, West, Blue Water Café, Cin Cin, with wine pairings selected by Araxi’s wine director, Samantha Rahn.  The food was amazing and the way the evening went off flawlessly truly remarkable.  There is going to be another Araxi long table dinner on August 17^th at North Arm Farm in Pemberton, north of Whistler.   If you can get there, I can highly recommend it; in fact I’m sure the outdoor setting in Pemberton will best Vanier Park; the food  and wines were fantastic and the service was also fantastic and it was wonderful to meet and speak with so many new faces and interesting people.  Needless to say, it is worth every cent and effort – it was truly a spectacular summer evening event.  I’m already looking forward to next year’s Long Table evening.  I came home with a copy of Araxi’s cook book, which I so look forward to mastering.

 

On Aug. 4, 1914, Britain declared war on Germany while the United States proclaimed its neutrality.

PHOTOS OF THE DAY

A girl cools off under a fountain during hot weather on Sechselaeutenplatz Square in Zurich, Switzerland, Monday. Arnd Wiegmann/Reuters

Passersby take photos of a rainbow at sunset in Beijing, Monday. Beijing has pledged to continue to improve air quality as part of its bid for the 2022 Winter Olympics, which the city was awarded on Friday. Mark Schiefelbein/AP

Market Closes for August 4, 2015

Market Index	Close	Change
Dow Jones	17550.69	-47.51     -0.27%
S&P 500	2093.32	-4.72   -0.22%
NASDAQ	5105.546	-9.836   -0.19%
TSX	14491.05	+22.61
		+0.16%

International Markets

Market Index	Close	Change
NIKKEI	20520.36	-27.75
		-0.14%
HANG SENG	24406.12	-5.30
		-0.2%
SENSEX	28071.93	-115.13
		-0.41%
FTSE 100	6686.57	-2.05
		-0.03%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.427	1.441
CND. 30 Year Bond	2.108	2.126
U.S.    10 Year Bond	2.2213	2.1890
U.S. 30 Year Bond	2.108	2.9116

Currencies

BOC Close	Today	Previous
Canadian $	0.75807	0.76436
US $	1.31914	1.30828
Euro Rate 1 Euro=		Inverse
Canadian $	1.43685	0.69597
US $	1.08922	0.91809

Commodities

Gold	Close	Previous
London Gold Fix	1090.65	1098.40
Oil	Close	Previous
WTI Crude Future	45.74	47.30

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, after posting the best weekly advance since April, as a rise in consumer shares overshadowed a drop in commodities producers.

     Martinrea International Inc. and Dollarama Inc. gained at least 2.8 percent to lead consumer-discretionary shares higher. Brookfield Property Partners LP climbed a record 5.6 percent after it said it was in the process of selling assets. Energy producers tumbled after crude sank on Monday to a six-month low while Canadian equity markets were shut for a holiday.

     The Standard & Poor’s/TSX Composite Index rose 22.61 points, or 0.2 percent, to 14,491.05 at 4 p.m. in Toronto. The S&P/TSX rallied 2 percent last week to trim its slide in July to 0.6 percent.

     Miners and energy producers slumped around the world on Monday as Brent oil dipped below $50 for the first time since January and the Bloomberg Commodity Index slipped to a 13-year low. Crude rebounded Tuesday as the rout in commodities paused.

     That wasn’t enough to spare resource producers in Canada from catch-up selling. Energy shares slid 0.6 percent. Yamana Gold Inc. fell 8.5 percent and Iamgold Corp. retreated 7.5 percent as raw-materials producers declined 0.9 percent as a group.

     Raw-materials and energy companies are the worst performers in the S&P/TSX this year, down at least 14 percent, amid a rout in commodities prices that has driven oil into a bear market and gold to a five-year low.

     Saputo Inc. climbed 4.9 percent, the most in five years, after reporting fiscal first-quarter earnings in line with estimates and said it will be able to navigate any regulatory changes that result from a Trans-Pacific Partnership deal. 

US

By Emma O’Brien and Adam Haigh

     (Bloomberg) — The dollar held gains at a four-month high after a Federal Reserve official stoked speculation interest rates will be raised next month. Japanese index futures climbed amid the yen’s retreat, while oil solidified its rebound.

     The greenback was steady at 124.34 yen by 8:04 a.m. in Tokyo as the Bloomberg Dollar Spot Index held at its highest closing level since March 17. Nikkei 225 Stock Average futures rose 0.2 percent, while contracts on the Standard & Poor’s 500 Index were little changed after Apple Inc. drove stock losses Tuesday. U.S. oil gained following Brent’s 0.9 percent rebound back toward $50 a barrel. Copper fell. New Zealand’s dollar was near a two-week low after jobs data and a slump in dairy prices.

     Treasuries retreated from their highest levels in two months after Fed Bank of Atlanta chief Dennis Lockhart said it would take significant deterioration in economic data to convince him that a rate hike in September should be put off.

Oil’s rebound steadied commodity markets, quelling losses among energy and mining stocks ahead of a swag of services industry data from China to Japan and the U.S. Thailand is projected to keep borrowing costs on hold at a review Wednesday.

     “The U.S. dollar will continue to rise and remain strong,” Mark Lister, head of private wealth research at Craigs Investment Partners Ltd. in Wellington, which manages about $7.2 billion, said by phone. “We’ve got more cautious on China of late. The real growth rate is a little bit below what’s being reported. We’re quite cautious on emerging markets across the board. It looks like it’ll get worse before it gets better.”

     Lockhart told the Wall Street Journal there is “a high bar right now to not acting, speaking for myself.” While talking up the economy’s recovery from a first-quarter slump, the central banker acknowledged the downward pressure on inflation exercised by the drop in oil prices. Much anticipated monthly payrolls data is due later this week as the Fed mulls whether to raise rates for the first time since 2006.

     The comments saw traders boost bets on a September increase, with the probability of a hike at the Fed’s next meeting at 48 percent, based on the assumption that the effective Fed funds rate will average 0.375 percent after the first increase. That compared with the 38 percent chance priced in earlier on Tuesday.

     “Lockhart is both a centrist and a 2015 voter on the FOMC, making this assertion important,” Raiko Shareef, a markets strategist in Wellington at Bank of New Zealand Ltd., wrote in a client note, referring to the Fed Open Market Committee which sets policy. “It changes the burden of proof -– data no longer has to improve materially for the Fed to move in September. It simply has to avoid worsening.” 

     Bloomberg’s dollar gauge was up 0.1 percent in a third day of gains. Yields on 10-year Treasury notes climbed seven basis points, or 0.07 percentage point, to 2.22 percent Tuesday after three days of declines.

     Nikkei 225 futures were bid for 20,500 in the Osaka pre- market, from 20,450 in Japan Tuesday, while yen-denominated contracts traded in Chicago were little changed at 20,515 after rising 0.1 percent in the previous session. A private gauge of Japan’s services sector is due Wednesday, ahead of the central bank’s monetary policy review later this week.

     Futures on indexes elsewhere in Asia were mixed, with contracts on Australia’s S&P/ASX 200 Index down 0.3 percent in most recent trading, while Kospi index futures in Seoul were little changed. Futures on Hong Kong’s Hang Seng and Hang Seng China Enterprises gauges increased 0.4 percent. Contracts on the FTSE China A50 Index, which tracks the biggest mainland shares, dropped 0.1 percent in Singapore as futures on the Shanghai Shenzhen CSI 300 Index jumped 6 percent.

    Chinese stocks listed in the U.S. rallied Tuesday after a 3.7 percent climb in the Shanghai Composite Index. Chinese equities climbed for only the second time in eight days last session after local authorities imposed restrictions on short selling, their latest salvo in a bid to stem gyrations in the stock market. Some brokerages halted their short-selling businesses entirely.

     The kiwi dropped as much as 0.2 percent in a sixth straight day of losses, after touching its weakest level since July 20 last session.

     Prices for whole milk powder fell to the lowest in at least seven years at a global auction Tuesday, and December powder futures traded in Wellington slid 6 percent early Wednesday. New Zealand, the world’s biggest dairy exporter, also saw smaller- than-expected growth in employment last quarter, government data showed.

     Some sense of calm returned to commodities markets following their slump to a 13-year low on Monday.

     West Texas Intermediate crude added 0.3 percent to $45.86 a barrel following last session’s 1.3 percent bounce. WTI and Brent both slid more than 4 percent on Monday after Iran indicated it could bolster crude output as early as a week after international sanctions against it are lifted. Concern over a global supply glut has sent oil down 14 percent this year.

     Copper futures for September delivery on the Comex lost 0.4 percent to $2.3515 a pound after rallying 0.7 percent Tuesday, its first increase in four days. The Bloomberg Industrial Metals Subindex rose 0.6 percent to 102.5656 Tuesday, snapping three days of losses. The measure has tumbled 17 percent this year amid signs of slowing momentum in China, the world’s biggest metals consumer.

     Gold was little changed at $1,087.35 an ounce after erasing losses of as much as 0.5 percent last session.

     Apple slid below its 200-day moving average for the first time since 2013 on Monday, and the stock is down more than 10 percent from its February high, meeting the common definition of a correction. The highest volume of shares since January were traded Tuesday. Apple has been falling since reporting disappointing iPhone sales in late July, stoking concern over whether the company can keep making must-have products.

 

Have a wonderful evening everyone.

 

Be magnificent!

This glorious soul we must believe in.  Out of that will come power.

Whatever you think, that you will be.  If you think yourselves weak, weak you will be;

if you think yourselves strong, strong you will be; if you think yourselves impure, impure you will be;

if you think yourselves pure, pure you will be.  This teaches us not to think ourselves as weak, but as strong,

omnipotent, omniscient.  No matter that I have not expressed it yet, it is in me.

All knowledge is in me, all power, all purity, and all freedom.  Why cannot I express this knowledge?

Because I do not believe in it.  Let me believe in it, and it must and will come out.

This is what the idea of the Impersonal teaches.

Swami Vivekananda

As ever,

Carolann

Too much rest is rust.

 -Walter Scott, 1771-1832

 

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:

Full Moon Tonight!

AUGUST

Leo/ Virgo
Birthstone: Peridot

Flower: Gladiolus

The days seem to shorten.  The nights, deep and warm, grow longer.  Tree frogs and crickets echo in the darkness.  Summer is short.  Apples are on  the trees.  The first fruits are gathered.  It’s the Celtic feast of Lugh, the God of Light, Christian Lammastide or Loaf Mass, when the first grains are ground and baked and placed upon the alter.  For the Celts, Lugh ordained the feast be held in honor of his mother Tailltiu, the Earth Mother.  Christians, too, celebrate Mary, Mother of Compassion, who carried all things in her heart and gave birth to the light.  What gifts!  What freedom!  This is the time to put on the garments of the spirit, to hold memories in our hearts.  Something is germinating secretly, silently within us.  Tread softly and take care of yourself and the world so that what your are carrying might come to birth. -by Cosmo Doogood

PHOTOS OF THE DAY

The moon sets behind a gilded statue of the angel Moroni atop the Indianapolis, Indiana Temple of The Church of Jesus Christ of Latter-day Saints in Carmel, Ind., early Friday morning. Michael Conroy/AP

Members of an international team of skydivers join hands in a head-first dive to build their world record-breaking skydiving formation over Ottawa, Ill., Friday. It took the team 13 attempts to build the formation, resembling a giant flower, to beat a 2012 record set by 138 skydivers. Jason Peters/AP

Market Closes for July 31^st, 2015

Market Index	Close	Change
Dow Jones	17691.53	-54.45     -0.31%
S&P 500	2103.58	-5.05     -0.24%
NASDAQ	5128.281	-0.503   -0.01%
TSX	14450.65	+67.87
		+0.47%

International Markets

Market Index	Close	Change
NIKKEI	20585.24	+62.41
		+0.30%
HANG SENG	24636.28	+138.30
		+0.56%
SENSEX	28114.56	+409.21
		+1.48%
FTSE 100	6696.28	+27.41
		+0.41%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.441	1.493
CND. 30 Year Bond	2.126	2.161
U.S.    10 Year Bond	2.1890	2.2625
U.S. 30 Year Bond	2.9116	2.9476

Currencies

BOC Close	Today	Previous
Canadian $	0.76436	0.76907
US $	1.30828	1.30028
Euro Rate 1 Euro=		Inverse
Canadian $	1.43696	0.69592
US $	1.09835	0.91045

Commodities

Gold	Close	Previous
London Gold Fix	1098.40	1087.50
Oil	Close	Previous
WTI Crude Future	47.30	48.52

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, capping the best week since April and paring a monthly loss, as raw-materials producers increased with a rebound in the price of gold.

     Yamana Gold Inc. and Semafo Inc. added more than 8.8 percent to pace gains among gold producers. CCL Industries Inc. climbed 9.6 percent after second-quarter earnings topped analysts’ estimates. Gildan Activewear Inc. tumbled 7.6 percent after the apparel maker cut its revenue target for the year. Bombardier Inc. lost 7.4 percent to a 1993 low.

     The Standard & Poor’s/TSX Composite Index rose 85.95 points, or 0.6 percent, to 14,468.73 at 4 p.m. in Toronto. It rose 2 percent for the week, the most since April. The S&P/TSX slumped 0.6 percent in July for a third monthly decline. Canadian equity markets will be closed on Monday for a civic holiday.

     Eldorado Gold Corp. jumped 11 percent and Goldcorp Inc. rallied 6 percent as raw-materials producers gained 2.8 percent as a group. Seven of 10 industries in the S&P/TSX advanced on trading volume 5.6 percent higher than the 30-day average today.

     Gold posted the first gain in four days as investors look for hints on when the Federal Reserve will raise interest rates. Wages and salaries in the U.S. rose in the second quarter at the slowest pace on record, a setback that may prompt some Fed policy makers to call for a delay in raising rates for the first time since 2006.

     Canadian gross domestic product fell 0.2 percent in May, bringing the decline since the start of the year to 0.8 percent as the economy struggled with plunging oil prices. Economists surveyed by Bloomberg projected no change in May output. The five-month decline is the longest slump since the 2008-2009 recession.

     Raw-materials and energy companies are the worst performers in the S&P/TSX this year, down at least 13 percent, amid a rout in commodities prices that has driven oil into a bear market and gold to a five-year low.

     Volatility in Europe and China has increased concern the global economy is slowing, resulting in lower demand for raw materials.

     The Bloomberg Commodity Index has retreated 11 percent in July, for the biggest monthly decline in almost four years after sinking to a 13-year low this week.

US

By Annelise Alexander and Joseph Ciolli

     (Bloomberg) — The Standard & Poor’s 500 Index pared its best monthly gain since February after disappointing results from Exxon Mobil Corp. and Chevron Corp.

     Energy shares fell the most since January as Exxon and Chevron slumped at least 4.5 percent. LinkedIn Corp. tumbled 10 percent amid concerns growth is slowing in its main business. Amgen Inc. rallied 2.9 percent and Expedia Inc. jumped 13 percent on better-than-estimated earnings. Coca-Cola Enterprises Inc. added 12 percent after a report said it’s considering a three-way merger with two other bottlers.

     The S&P 500 declined 0.2 percent to 2,103.84 at 4 p.m. in New York, falling for the first time in four days. The Dow Jones Industrial Average slipped 56.12 points, or 0.3 percent, to 17,689.86, with a 55-point drag from Chevron and Exxon. The Nasdaq Composite Index decreased less than 0.1 percent. About 6.8 billion shares traded hands on U.S. exchanges, 6 percent above the three-month average.

     A report today showed wages and salaries in the U.S. rose in the second quarter at the slowest pace on record, dashing projections that an improving labor market would boost pay. The data sparked speculation that slow wage growth will temper Federal Reserve plans for higher interest rates.

     “This came as a pretty big stunner for the markets,” said Robert Sinche, a strategist at Amherst Pierpont Securities LLC in Stamford, Connecticut. “The dovish wing of the Fed is going to latch on to this wage data pretty aggressively.”

     Fed Chair Janet Yellen and her colleagues are counting on rising wages to boost the economy and bring inflation closer to their 2 percent goal. The setback may prompt some officials to call for a delay in raising interest rates for the first time since 2006.                           

     Yellen has said the Fed is likely to tighten policy this year should the economy continue to improve in line with her expectations. She has emphasized that the timing of rate liftoff is less important than the subsequent pace of increases, which she said would be gradual. Economists have put the chance of a September increase at 50 percent.

     “It makes it that much tougher for the Fed to raise rates when you have no wage growth,” said Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird & Co., which oversees $110 billion. “In a market that’s trading in such a tight trading range, investors are taking any piece of material that comes out as potentially being important to changing the character of the market.”

     Separate data Friday showed consumer confidence retreated in July as Americans’ expectations deteriorated to an eight- month low.

     The S&P 500 rose 2 percent in July after dropping 2.1 percent in the previous month. The gauge gained 1.2 percent for the week, as shares rallied on Tuesday and Wednesday to end the longest losing streak since January. Equities had fallen 2.9 percent over a five-session stretch amid concerns about growth in China and some corporate earnings disappointments.

     About two-thirds of the S&P 500 companies have reported earnings this season, with 74 percent beating profit estimates and half of them topping sales projections. Analysts expect a 2.8 percent drop in second-quarter earnings, shallower than calls for a 6.4 percent fall two weeks ago.

     “The most important thing is earnings,” said Karyn Cavanaugh, a senior market strategist at Voya Investment Management LLC. “If the sky is falling, companies wouldn’t be able to make money. The fact that earnings are coming in pretty decently has a settling effect on the market.”

     Five of the S&P 500’s 10 main groups declined Friday, led by energy companies as the sector had its worst month since November. Utilities and health-care gained the most today. The Chicago Board Options Exchange Volatility Index slipped 0.1 percent to 12.12. The gauge, known as the VIX, had its biggest monthly drop since February, down 33 percent.

     Exxon Mobil and Chevron, the biggest U.S. energy producers, pulled energy shares lower. The group is the S&P 500’s worst performer in July, down 7.8 percent. Murphy Oil Corp. and Transocean Ltd. sank more than 4.9 percent Friday, while ConocoPhillips lost 3.3 percent.

     Exxon retreated the most in nearly four years after its lowest profit since 2009, as crude prices fell twice as fast as the oil giant could cut expenses.

     Chevron recorded its lowest earnings in more than 12 years after oil’s rout forced $2.6 billion in asset writedowns and related charges, sending its shares down the most since November. West Texas Intermediate crude slid 2.9 percent, capping its biggest monthly drop since 2008.

     LinkedIn Corp. fell after the company attributed a bump in its annual revenue forecast to its acquisition of the education website Lynda.com. Shares fell 11 percent, the most since May.

     Semiconductors fell for a second day as Micron Technology Inc. and Qorvo Inc. lost more than 4.1 percent. Broadcom Corp.

declined 1.4 percent after its second-quarter profit missed analysts’ estimates, and the chipmaker’s third-quarter revenue forecast was below the midpoint of analysts’ views.

     Hanesbrands Inc. tumbled 9.1 percent, the underwear maker’s biggest drop in four years, after cutting its 2015 revenue forecast. The shares had rallied 4.2 percent during the three previous sessions.

     Utilities rose 1 percent to end their best month since October as bond yields retreated. The yield on the 10-year U.S. Treasury marked its biggest monthly slide since January. Declining yields make utilities’ dividend payout more attractive to investors.

     Amgen paced gains in health-care, rising 2.9 percent to a record after posting second-quarter profit that beat analysts’ estimates, driven by higher sales of rheumatoid arthritis drug Enbrel and lower operating expenses. The biotech also raised its revenue and earnings forecast for the year. The Nasdaq Biotechnology Index advanced 1 percent.

     Royal Caribbean Cruises Ltd. jumped 8.6 percent, the most since 2011, to an all-time high. The cruise line’s quarterly earnings exceeded estimates, and it boosted its full-year profit view. Carnival Corp. gained 2.7 percent to a more than nine-year high. Expedia also topped a record, leading consumer- discretionary shares higher after second-quarter sales and profit topped analysts’ estimates.

     Coca-Cola Enterprises Inc., an independent bottler of Coke products in Europe, surged 12 percent to a record after the Wall Street Journal said the company is considering a merger with Coca-Cola Erfrischungsgetränke AG in Germany and Coca-Cola Iberian Partners, which serves Spain and Portugal.

 

Have a wonderful weekend everyone.
 

Be magnificent!

The universal power that manifests itself in the universal law

is at one with our true power.

Rabindranath Tagore

 

As ever,

 

Carolann

To be prepared is half the victory.

–Miguel de Cervantes, 1547-1616

 

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 1976, Bruce Jenner, now known as Caitlyn Jenner, won the Olympic gold medal in the decathlon at the Montreal games.
And also on this day in 1935, paperback books were introduced.
Emily Bronte was born on July 30^th, 1818.
Henry Ford was born on this day in 1863.
Sculptor Henry Moore was born July 30^th, 1848.
Arnold Schwarzenegger was born in 1947.

Lesson  from the Dalai Lama:

 
Remember that not getting what you want is sometimes a wonderful stroke of luck.

 
Learn the rules so you know how to break them properly.

 
Spend some time alone every day.

 
Open your arms to change, but don’t let go of your values.

 
Remember that silence is sometimes the best answer.

 
Remember that the best relationship is one in which your love for each other exceeds your need for each other.

PHOTOS OF THE DAY

A visitor walks through the Luminarium, an inflatable sculpture realized by British artist Alan Parkinson, installed on the grounds of the ‘Baby Beach’ during the Geneva Festival in Geneva, Switzerland, Thursday. Martial Trezzini/AP

 

Sarah Madison (l.) holds her son Beckett as her daughter Quinn (r.) looks at stuffed animals at the doorway of River Bluff Dental Clinic in protest against the killing of Cecil, a famous Zimbabwean lion, in Bloomington, Minn., Thursday. A Zimbabwean court charged professional local hunter Theo Bronkhorst with failing to prevent an American from unlawfully killing Cecil, the southern African country’s best-known lion. The American, Walter James Palmer, a Minnesota dentist who paid $50,000 to kill the lion, has left Zimbabwe. He says he did kill the animal but believed the hunt was legal and that the necessary permits had been issued. Eric Miller/Reuters

Market Closes for July 30^th, 2015

Market Index	Close	Change
Dow Jones	17745.98	-5.41     -0.03%
S&P 500	2108.92	+0.35     +0.02%
NASDAQ	5128.785	+17.052     +0.33%
TSX	14375.10	+73.30
		+0.51%

International Markets

Market Index	Close	Change
NIKKEI	20522.83	+219.92
		+1.08%
HANG SENG	24497.98	-121.47
		-0.49%
SENSEX	27705.35	+141.92
		+0.51%
FTSE 100	6668.87	+37.87
		+0.57%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.493	1.516
CND. 30 Year Bond	2.161	2.201
U.S.    10 Year Bond	2.2625	2.2805
U.S. 30 Year Bond	2.9476	2.9927

Currencies

BOC Close	Today	Previous
Canadian $	0.76907	0.77245
US $	1.30028	1.29459
Euro Rate 1 Euro=		Inverse
Canadian $	1.42128	0.70359
US $	1.09306	0.91486

Commodities

Gold	Close	Previous
London Gold Fix	1087.50	1090.25
Oil	Close	Previous
WTI Crude Future	48.52	48.79

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, after the biggest rally in six months yesterday, as Suncor Energy Inc. led a rally in energy companies on better-than-estimated earnings.

     Suncor added 6.3 percent as its quarterly profit more than tripled and it cut spending plans. Potash Corp. of Saskatchewan Inc. gained 1.1 percent as the company said it may sell some assets. Bombardier Inc. plunged 9.7 percent after delaying its Global 7000 business jet by two years. First Quantum Minerals Ltd. lost 10 percent after quarterly results missed analysts’ estimates.

     The Standard & Poor’s/TSX Composite Index rose 80.96 points, or 0.6 percent, to 14,382.76 at 4 p.m. in Toronto. The S&P/TSX has slumped 1.2 percent in July, headed for a third monthly decline, the longest such streak since 2012.

     Investors are considering earnings from 28 companies in the S&P/TSX today from Quebecor Inc. to Cenovus Energy Inc. Suncor Energy surged the most since December on its earnings and as the company cut its spending plan for 2015 for a second time.

     Energy producers in the S&P/TSX jumped 2.3 percent, the most in six months. Raging River Exploration Inc. and Arc Resources Ltd. gained at least 5.6 percent. Raw-materials and energy companies are the worst-performers in the S&P/TSX this year amid a rout in commodities prices that has driven oil into a bear market and gold to a five-year low.

     Volatility in Europe and China has increased concern the global economy is slowing, resulting in lower demand for raw materials.

     The Bloomberg Commodity Index of 22 raw materials lost 0.5 percent, halting a two-day advance. The gauge is down 9.8 percent in July, the most since September 2011, after dropping to a 13-year low this month. West Texas Intermediate crude is heading for its biggest monthly fall since December as copper led base metals lower.

     Open Text Corp. surged 22 percent, the biggest gain since August 2007, after the company posted earnings ahead of analysts’ estimates. Open Text may also take the U.S. Internal Revenue Service to court to fight a proposed tax increase stemming from the technology company moving ownership of its intellectual property to Luxembourg in 2010.

     Agnico Eagle Mines Ltd. tumbled 7.1 percent and Sherritt International Corp. lost 10 percent as gold fell, headed for its largest monthly decline in two years. Bullion for December delivery dropped 0.4 percent in New York.

     OceanaGold Corp. slumped 19 percent after the company agreed to buy Romarco Minerals Inc. in a share deal worth C$856 million. Romarco soared 34 percent.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks were little changed as better- than-estimated earnings from Mondelez International Inc. helped offset results that disappointed from Facebook Inc. and Procter & Gamble Co.

     Facebook dropped 1.8 percent after second-quarter spending jumped 82 percent. P&G retreated 4 percent after forecasting sluggish sales and profit growth. Whole Foods Market Inc. tumbled 12 percent after cutting its sales forecast. Mondelez added 5 percent as quarterly profits beat estimates, and Western Digital Corp. jumped 10 percent.

     The Standard & Poor’s 500 Index increased less than 1 point to 2,108.63 at 4 p.m. in New York, after falling as much as 0.6 percent. The gauge closed for a second session above its average price during the past 50 days. The Dow Jones Industrial Average lost 5.41 points to 17,745.98. The Nasdaq Composite Index rose 0.3 percent. About 6.5 billion shares traded hands on U.S. exchanges, in line with the three-month average.

     “When you put the Fed, the economy and earnings season all together, you still get a sideways market,” said Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion. “You’ve had a handful of stocks that have really moved the averages over the past couple weeks of earnings, and today is not an exception.”

     A report today showed gross domestic product rose at a 2.3 percent annualized rate, and a revised 0.6 percent advance in the first quarter wiped out a previously reported contraction. Consumer spending grew more than projected. Separate data showed applications for unemployment benefits rose last week after reaching a four-decade low, consistent with a stronger labor market.

     The Federal Reserve yesterday appeared to move a step closer to raising interest rates after policy makers expressed satisfaction with an improvement in labor markets, keeping alive speculation borrowing costs may rise in September without being definitive about the timing.

     Fed Chair Janet Yellen is guiding the central bank toward its first rate increase in almost a decade as the U.S. approaches full employment. She has said the Fed is likely to tighten policy this year should the economy continue to improve in line with her expectations. Economists have put the chance of a September increase at 50 percent.

     More than 50 S&P 500 members posted financial results today. Nearly three-quarters of the 323 companies that have reported this season have beaten profit estimates while half topped sales projections. Analysts expect a 4 percent drop in second-quarter earnings, shallower than July 10 calls for a 6.4 percent fall.                         

     The S&P 500 is up 2.2 percent in July, heading for its biggest monthly advance since February, after rallying 2 percent in the previous two sessions. The index declined in four of the last five weeks, and had lost 2.9 percent in the five sessions ending Monday as a Chinese equities rout spurred concern about the nation’s economic growth and some corporate earnings disappointed.

     The Chicago Board Options Exchange Volatility Index fell 3 percent Thursday to 12.13, after tumbling 20 percent over the previous two days. The gauge, known as the VIX, is on course for its biggest monthly drop since February, down 33 percent.

     Six of the S&P 500’s 10 main groups advanced, led by utilities and raw-materials, while energy and consumer staples declined the most.

     Whole Foods Market’s 12 percent skid to its lowest since January 2012 put a dent in staples’ strongest monthly advance since November. The organic grocer posted disappointing quarterly results and cut its sales forecast, a sign the company is losing its edge in a market it helped pioneer.

     Procter & Gamble fell 4 percent, the most in more than two years. The world’s largest consumer-products maker forecast sluggish sales and profit growth this year.

     Facebook’s 1.8 percent loss was a drag on technology shares, though the stock trimmed an earlier drop of more than 5 percent. The social media giant’s spending jump in the second quarter eroded margins. Still, the company posted sales that topped estimates. Qorvo Inc. plunged 14 percent after revenue guidance for next quarter fell short of analysts’ expectations.

     Energy shares in the benchmark declined for the first time in three days. Ensco Plc slid 7.6 percent, and Range Resources Corp. tumbled 6.5 percent after its quarterly profit missed estimates. Marathon Petroleum Corp. and Valero Energy Corp. lost more than 2.7 percent. Oil erased an earlier gain to slip for the first time in three sessions, down 0.6 percent.

     Varian Medical Systems Inc. paced health-care’s loss, falling 4.9 percent after reporting sales that fell short of analysts’ forecasts. Cardinal Health Inc. and McKesson Corp. decreased at least 1.2 percent after reporting results.                        

     Mondelez rose 5 percent to an all-time high. The maker of Oreo cookies and Triscuit crackers posted second-quarter profit that topped analysts’ estimates, helped by a push to cut costs and shift production overseas. The snack giant also increased its stock buyback plan by $6 billion.

     Wynn Resorts Ltd. and Netflix Inc. rallied more than 4.1 percent to pace an increase in consumer discretionary shares.  Wynn had its best gain since November 2011 after setting an opening date for its second casino in Macau. Amazon.com Inc. added 1.5 percent on its way to a record, and its strongest month since September 2010.

     Raw-materials stocks in the benchmark gauge advanced as Air Products & Chemicals Inc. added 6.1 percent. The world’s largest supplier of hydrogen gained the most in 13 months after raising its full-year profit forecast as margins expanded. Westrock Co. increased 5.8 percent, while Sealed Air Corp. climbed 4.7 percent.

     Western Digital’s biggest rally in three years helped to offset Facebook and Qorvo’s decline among tech shares. The hard- drive maker said it’s seeing early signs of a pickup in PC demand. Microsoft Corp. gained 1.3 percent, while Seagate Technology Plc and Qualcomm Inc. climbed at least 2 percent.

     Utilities rose 0.7 percent on the way to their best month since October as bond yields retreated Thursday. The yield on the 10-year U.S. Treasury is headed for its biggest monthly slide since January. Declining yields make utilities’ dividend payout more attractive to investors.

 

Have a wonderful evening everyone!

 

Be magnificent!

Even at the gate of death, in the greatest danger,

in the thick of the battlefield,

at the bottom of the ocean, on the tops of the highest mountains,

in the thickest of the forest, tell yourself,

“I am He, I am He.”

Swami Vivekananda

As ever,

 

Carolann

 

Maybe all one can do is hope to end up with the right regrets.

                                                -Arthur Miller, 1915-2005

 

 

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:

NASA was established on this day in 1958.

We can never obtain peace in the outer world until we make peace with ourselves.  –Dalai Lama

Take into account that great love and great achievements involve great ris.

When you lose, don’t lose the lesson.

Follow the three R’s: Respect for self, Respect for others, and Responsibility for all your actions.

Share your knowledge.  It’s a way to achieve immortality.

Be gentle with the earth.

Once a year, go someplace you’ve never been before.

More advice from the Dalai Lama tomorrow.

PHOTOS OF THE DAY

The full moon rises early Wednesday over the illuminated Kazan Kremlin with the Qol Sharif mosque (l.) and The Transfiguration Cathedral in Kazan, the capital of Tatarstan, located in Russia’s Volga River area about 700 km (450 miles) east of Moscow. Denis Tyrin/AP

Artist Mark Balma paints a mural of Cecil, a well-known lion killed by Minnesota dentist Walter Palmer during a guided bow hunting trip in Zimbabwe, as part of a silent protest outside Palmer’s office in Bloomington, Minn., Wednesday. Palmer said that he had no idea the lion he killed was protected and that he relied on the expertise of his local guides to ensure the hunt was legal. Glen Stubbe/Star Tribune/AP

Market Closes for July 29^th, 2015

Market Index	Close	Change
Dow Jones	17751.39	+121.12     +0.69%
S&P 500	2108.57	+15.32     +0.73%
NASDAQ	5111.734	+22.528     +0.44%
TSX	14301.80	+224.44
		+1.59%

International Markets

Market Index	Close	Change
NIKKEI	20302.91	-25.98
		-0.13%
HANG SENG	24619.45	+115.51
		+0.47%
SENSEX	27563.43	+104.20
		+0.38%
FTSE 100	6631.00	+75.72
		+1.16%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.516	1.505
CND. 30 Year Bond	2.201	2.171
U.S.    10 Year Bond	2.2805	2.2499
U.S. 30 Year Bond	2.9927	2.9657

Currencies

BOC Close	Today	Previous
Canadian $	0.77245	0.77338
US $	1.29459	1.29302
Euro Rate 1 Euro=		Inverse
Canadian $	1.42285	0.70282
US $	1.09907	0.90986

Commodities

Gold	Close	Previous
London Gold Fix	1090.25	1096.20
Oil	Close	Previous
WTI Crude Future	48.79	47.98

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose the most in six months as commodities producers and banks surged and the Federal Reserve policy makers failed to provide a clear signal on when U.S. interest rates will increase.

     Suncor Energy Inc. added 4.3 percent, while Bankers Petroleum Ltd. jumped 9.9 percent as oil rose the most in three weeks. Toronto-Dominion Bank and Royal Bank of Canada increased at least 2.7 percent. Torstar Corp., owner of the Toronto Star newspaper, plunged to a 2009 low after earnings missed estimates and it acquired a stake in a digital media company. CGI Group Inc. dropped 3.8 percent after quarterly sales fell short of analyst forecasts.

     The Standard & Poor’s/TSX Composite Index rose 224.44 points, or 1.6 percent, to 14,301.80 at 4 p.m. in Toronto, the biggest gain since Jan. 21. The gauge Tuesday snapped the longest run of declines since 2011. The S&P/TSX has slumped 1.7 percent in July, headed for a third monthly decline, the longest such streak since 2012.

     The Bloomberg Commodity Index of 22 raw materials added 0.2 percent, after earlier trading near a 13-year low, as oil rallied after U.S. inventory data showed stockpiles unexpectedly declined.

     Nine of 10 industries in the S&P/TSX gained on trading volume 22 percent higher than the 30-day average. Energy and financial companies in the index rallied at least 1.8 percent.

     Sherritt International Corp. surged 16 percent and Barrick Gold Corp. added 5.2 percent. Teck Resources Ltd. and First Quantum Minerals Ltd. added more than 2.2 percent.

     Federal Reserve policy makers said the labor market and housing have improved, inching closer to raising interest rates without providing a clear signal on the timing of any increase.

     Bombardier Inc. surged 7.1 percent. Hours after Dow Jones reported Bombardier was in merger discussions with Siemens AG over its rail unit, a company spokeswoman said there were “no talks” of a merger. Bombardier is scheduled to report second- quarter earnings Thursday.

US

By Joseph Ciolli and Annelise Alexander

     (Bloomberg) — U.S. stocks rallied for a second day, as earnings topped forecasts and the Federal Reserve said the labor and housing markets are improving.

     Gilead Sciences Inc. climbed 2.3 percent while General Dynamics and Northrop Grumman Corp. jumped more than 3.9 percent as the companies lifted their outlooks. Twitter Inc. tumbled 15 percent after its top executives struck a critical tone on user growth.

     The Standard & Poor’s 500 Index rose 0.7 percent to 2,108.57 at 4 p.m. in New York, after climbing above its average prices during both the past 50 and 100 days. The Dow Jones Industrial Average added 121.12 points, or 0.7 percent, to 17,751.39. The Nasdaq Composite Index gained 0.4 percent.

     “Most peoples’ expectations are that we’re going to get a hike by the end of the year, and the Fed [statement] today didn’t do anything to change that narrative,” said Joe Bell, a Cincinnati-based senior equity analyst at Schaeffer’s Investment Research Inc.

     The labor market “continued to improve, with solid job gains and declining unemployment,” the Federal Open Market Committee said in a statement today, while also noting the housing sector “has shown additional improvement.”

     Chair Janet Yellen is guiding the Fed toward its first rate increase in almost a decade as the nation approaches full employment. She has said the Fed is likely to tighten this year if the economy continues to improve as she expects, with market speculation focused on a move as soon as September.

     Yellen has emphasized that the timing of rate liftoff is less important than the subsequent pace of increases, which she said would be gradual.

     Greece’s debt crisis and recent turmoil in China’s stock market had raised concerns about global growth and added to speculation that the Fed may further delay a rate increase.

     Earlier this month, Yellen told lawmakers that raising rates prematurely could derail the recovery. Waiting too long, on the other hand, might force the Fed to tighten at a faster pace to keep the economy from overheating.

     “The Street clearly has a tug-of-war going on between the camp that sees enough evidence and wants to get a hike under the belt, and another camp that would prefer the Fed to be cautious and wait until later in the year,” said Myles Clouston, senior director of Nasdaq Advisory Services in New York.                     

     Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein said U.S. markets are poised for prolonged growth and will quickly move on after a jolt from the Fed’s first rate increase since 2006.

     “We are in for a longish, positive market,” Blankfein said today in an interview on Bloomberg Television. “Since the financial crisis, especially in this country, there were a lot of problems, but we chewed through them. Consumers have deleveraged, the banking system has deleveraged, we got the blessing of low energy prices, housing prices started to stabilize and move higher.”

     Data today showed an index of pending home sales unexpectedly fell 1.8 percent, the first drop this year, after a revised 0.6 percent increase in May that was smaller than initially reported.

     The S&P 500 is up 2.2 percent in July, heading for its biggest monthly advance since February. The index rose yesterday after declining for four of the last five weeks, and had lost 2.9 percent in the five sessions ending Monday as a Chinese equities rout spurred concern about the nation’s economic growth and some corporate earnings disappointed.

     About three-quarters of S&P 500 companies that have reported earnings this season have beaten profit estimates while half topped sales projections. Analysts expect a 4 percent drop in second-quarter earnings, shallower than July 10 calls for a 6.4 percent fall.

     Facebook Inc. slipped 1.8 percent in late trading as of 4:45 p.m., after spending in the second quarter jumped 82 percent. Sales topped estimates, thanks to a robust advertising business and a growing number of mobile users.

     The Chicago Board Options Exchange Volatility Index slipped 7 percent Wednesday to 12.50, after reaching a two-week high Monday. The gauge, know as the VIX, rose 15 percent last week, its fifth gain in six weeks. About 7.3 billion shares traded hands on U.S. exchanges, 12 percent above the three-month average.

     All of the S&P 500’s 10 main groups advanced, led by energy and industrial companies. C.H. Robinson Worldwide Inc. paced industrial shares’ advance, climbing 4.7 percent after reporting second-quarter profit that exceeded  analysts’ estimates.

     The freight carrier also helped lift the Dow Jones Transportation Average to its strongest two-day climb since November 2011. General Dynamics and Northrop Grumman also bolstered industrials, gaining more than 3.9 percent to records. Raytheon Co. added 4.1 percent to a three-month high.                      

     Energy and raw-material shares added to Tuesday’s rally amid a continued reprieve from a two-week commodities selloff. Crude oil extended its two-day climb to 3.1 percent, pushing Anadarko Petroleum Corp. and Diamond Offshore drilling Inc. up more than 3.5 percent. Pioneer Natural Resources Co. and Transocean Ltd. added at least 2.4 percent.

     Banks in the benchmark rallied as Treasury yields increased to the highest in a week. Bank of America Corp., JPMorgan Chase & Co. and Comerica Inc. each added at least 1.3 percent.

     Citrix Systems Inc. climbed 8.1 percent, the most since January 2013, to lead S&P 500 technology companies higher. The software maker reached a settlement with investor Elliott Management Corp., agreeing to add the activist’s chief agitator Jesse Cohn to its board and begin a search for a new chief executive officer.                     

     Microsoft Corp. gained 2.1 percent, the most in seven weeks, amid a low-key introduction for its Windows 10 operating system. MasterCard Inc. erased an earlier drop of as much as 2.3 percent to climb 1.7 percent, even as the second-largest payments network said profit fell 1.1 percent as expenses rose and a strengthening U.S. dollar hurt earnings overseas.

     Twitter slipped 15 percent, the most since April. Interim Chief Executive Officer Jack Dorsey and Chief Financial Officer Anthony Noto said user growth won’t improve until the social- media company reaches a mass market — something that will take a mixture of product improvements and marketing.

     Yelp Inc. plunged by a record 25 percent after the customer-review website reduced its revenue forecast and at least five analysts downgraded the stock. In addition to cutting its third-quarter sales prediction, Yelp announced it would stop selling national brand advertising.
 

Have  a wonderful evening everyone.

 

Be magnificent!

Where does the soul go after death?  Where could the earth fall to?

Where can the soul go?  Where is it not already?

The great cornerstone of Vedantism is the recognition of Self.

Man, have faith in yourself.  The soul is the same in every one.

It is all purity and perfection  and the more pure and perfect we [you] are

the more purity  and perfection you will see.

Swami Vivekananda

 

As ever,

 

Carolann

 

Painting is easy when you don’t know how, but very difficult when you do.

                                                               -Edgar Degas, 1834-1917

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:

July 28, 1929: Jacqueline Kennedy was born.

Also on this day in 1914, World War l  began when Archduke Ferdinand was killed.

“Strange were those summers; summers filled with war.
I think the flowers were the lovelier
For danger,  Then we lived the pundonor,
Moment of truth and honour, when the bull
Charges and danger is extreme, but skill
And daring over-leap the fallible will
And bring the massive beast to noble kill.
Moments as sharp as sword-points then we lived
Citing our death along the leveled blade;
Then in our petty selves were shaken, sieved,
Withouten leisure left to be afraid…

Yet, angry and astonished  as we were
We kept our faith and even at moments said

‘This war will be over soon.’
Yes, in September or perhaps November,
With some full moon or gibbous moon,
A harvest moon or else a hunter’s moon,
It will be over.

Not for the broken innocent villages,
Not for the broken innocent hearts:
For them it will not be over,
The memorable dread,
The lost home, the lost son, and the lost lover.

Under the rising sun, the waxing moon,
This was will be over soon,
But only for the dead…

Strange were those summer nights, those nights of war…”
                        -V. Sackville-West, The Garden.

PHOTOS OF THE DAY

Children look at a scarecrow of Britain’s Prince George and Princess Charlotte with their nanny during the Scarecrow Festival in Heather, England, Tuesday. The annual event asks residents of Heather to make scarecrows to raise thousands of pounds for local groups and charities. Darren Staples/Reuters

Two girls ride horses near Frankfurt, Germany, Tuesday. Weather forecasts predict changing weather patterns in Germany during the next few days. Michael Probst/AP

Market Closes for July 28^th, 2015

Market Index	Close	Change
Dow Jones	17630.27	+189.68     +1.09%
S&P 500	2093.25	+25.61       +1.24%
NASDAQ	5089.207	+49.431     +0.98%
TSX	14077.36	+75.99
		+0.54%

International Markets

Market Index	Close	Change
NIKKEI	20328.89	-21.21
		-0.10%
HANG SENG	24503.94	+151.98
		+0.62%
SENSEX	27459.23	-102.15
		-0.37%
FTSE 100	6555.28	+50.15
		+0.77%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.505	1.456
CND. 30 Year Bond	2.171	2.127
U.S.    10 Year Bond	2.2499	2.2158
U.S. 30 Year Bond	2.9657	2.9327

Currencies

BOC Close	Today	Previous
Canadian $	0.77338	0.76727
US $	1.29302	1.30333
Euro Rate 1 Euro=		Inverse
Canadian $	1.43009	0.69926
US $	1.10600	0.90416

Commodities

Gold	Close	Previous
London Gold Fix	1096.20	1100.00
Oil	Close	Previous
WTI Crude Future	47.98	47.39

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for the first time in eight days, after the longest run of losses in four years, as Chinese shares pulled back from a selloff and commodities rebounded.

     BlackBerry Ltd. jumped 6 percent, snapping a four-day loss, after analysts at Morgan Stanley raised their rating for the company. Teck Resources Ltd., Canada’s largest diversified miner, added 5.9 percent. MEG Energy Corp. rallied 1.8 percent as it reported a narrower operating loss than analysts estimated. Home Capital Group Inc. dropped 6.4 percent after a director of the company resigned ahead of Wednesday’s earnings call.

     Producers of energy and raw materials, which account for about 30 percent of the equity benchmark, are the worst- performing stocks in Canada this year amid a rout in commodities. The Bloomberg Commodity Index of 22 raw materials rose 0.8 percent, snapping a four-day decline to rebound from a 13-year low.

     The Standard & Poor’s/TSX Composite Index rose 75.99 points, or 0.5 percent, to 14,077.36 at 4 p.m. in Toronto, snapping the longest losing streak since 2011. The gauge has fallen more than 10 percent from an all-time record on Sept. 3 and is 8.9 percent below an April 15 high.

     Trilogy Energy Corp. soared 19 percent and Bellatrix Exploration Ltd. jumped 6.8 percent as energy producers surged 1.6 percent, rebounding from a 2009 low. Seven of 10 industries in the S&P/TSX increased on trading volume 14 percent higher than the 30-day average today.

     Labrador Iron Ore Royalty Corp. jumped 8.6 percent as materials producers rose 0.3 percent, from a December 2008 low. Copper posted the biggest gain in two weeks.

     First Quantum Minerals Ltd. dropped 4.3 percent after the mining company reported an imposed power reduction at its operations in Zambia.

     The MSCI All-Country World Index, which includes emerging markets, rose 0.8 percent, after a five-day decline. The Shanghai Composite Index dropped 1.7 percent at the close in Asia, after sinking as much as 5.1 percent earlier. China is Canada’s second-largest trading partner after the U.S.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks rose, ending their longest losing streak since January, amid better-than-forecast earnings and as Chinese equities pulled back from a selloff.

     United Parcel Service Inc. advanced 5.1 percent, and Pfizer Inc. gained 2.9 percent after their profits beat projections. Energy shares rallied with oil, and Freeport-McMoRan Inc. led raw-material producers higher as copper climbed. Baidu Inc. fell 15 percent after forecasting sales that were below analysts’ targets. Ingersoll-Rand Plc lost 6.6 percent as earnings missed estimates.

     The Standard & Poor’s 500 Index increased 1.2 percent to 2,093.25 at 4 p.m. in New York, as the gauge climbed the most in two weeks to hit its average price during the past 100 days. The Dow Jones Industrial Average added 189.68 points, or 1.1 percent, to 17,630.27 after Monday reaching its lowest level since February. The Nasdaq Composite Index rose 1 percent.

     “China slowed the big selloff it saw yesterday, and that’s lifting the U.S. market,” said Terry Morris, a senior equity manager who helps oversee about $2.8 billion at Wyomissing, Pennsylvania-based National Penn Investors Trust Co. “Reported earnings have been OK so far, and we’ll get a lot more reports to digest as the week goes along.”

     Chinese equities lost 1.7 percent today, after sinking as much as 5.1 percent. Shares tumbled 8.5 percent Monday amid weaker-than-expected economic data and concern that a three-week rally sparked by unprecedented government intervention is unsustainable.                          

     The S&P 500 fell 2.9 percent in the previous five sessions as a Chinese stock rout spurred concern about the nation’s economic growth and some corporate earnings disappointed. The index has declined for four of the last five weeks and is up 1.5 percent this month, after nearly erasing its July gain yesterday.

     Federal Reserve policy makers began a two-day meeting today to assess the strength of economic growth and debate the timing for higher interest rates. While economists see no chance the central bank will raise rates this week, they put the odds of a September boost at about 50 percent, a Bloomberg survey published July 22 showed.

     Fed Chair Janet Yellen has signaled that the central bank is likely to lift rates this year, and emphasized that the pace of subsequent increases would be gradual.

     A report today showed home prices in 20 U.S. cities rose at a slower pace in the year ended May. Separate data showed consumer confidence slumped in July by the most since August 2011 as Americans became less upbeat about prospects for the economy, employment and their finances.

     Investors are also watching the earnings season, with more than 100 members of the S&P 500 yet to report this week. Of the firms that have already done so, more than three-quarters beat profit estimates and about half topped sales forecasts. Analysts have moderated estimates for a drop in second-quarter earnings to 4 percent, from 6.4 percent on July 10.

     The Chicago Board Options Exchange Volatility Index slipped 14 percent Tuesday to 13.44, after reaching a two-week high yesterday. The gauge, know as the VIX, rose 15 percent last week, its fifth gain in six weeks. About 7.4 billion shares traded hands on U.S. exchanges, 15 percent above the three-month average.

     All of the S&P 500’s 10 main groups advanced, led by energy and raw-material shares amid a reprieve in a two-week commodities selloff. The energy group rallied 3 percent, the biggest jump since February 2. Exxon Mobil Corp. surged 4.1 percent, its best advance since 2011. Southwestern Energy Co. rose 6.8 percent, the most since October, after cutting its spending outlook and raising its production forecasts.

     Chesapeake Energy Corp. increased 7.5 percent, after dropping about 28 percent in the seven sessions ending yesterday. Diamond Offshore Drilling Inc. climbed 3.6 percent. The price of crude oil gained for the first time in five trading sessions, with West Texas Intermediate futures adding 1.2 percent.

     Raw-material shares in the S&P 500 rebounded from a nine- day skid to rise 2.2 percent as copper prices bounced back from a six-year low. Freeport-McMoRan, the largest publicly-traded copper miner, surged 8.4 percent amid plans for more investment cutbacks and cost savings.

     Eastman Chemical Co. gained 6.8 percent after reporting earnings that beat analyst forecasts. Ecolab Inc. rallied 5 percent, the biggest advance in almost four years, to end a seven-session losing streak. Dow Chemical Co. climbed 2.2 percent to also halt a seven-day slump.

     Gains in Masco Corp. and UPS helped pushed a group of S&P 500 industrial companies to their strongest climb since January. Masco jumped 11 percent to an eight-year high after the building-products maker’s quarterly profit beat estimates. UPS turned in its best gain in more than five years.

     Caterpillar Inc. increased 3.3 percent, the most since March, after announcing an accelerated $1.5 billion stock repurchase from Citigroup’s Inc.’s Citibank.

     The Dow Jones Transportation Average jumped 2.7 percent, the biggest climb in six months, buoyed by UPS. Railroads Kansas City Southern and Union Pacific Corp. climbed at least 4.5 percent.

     Ford Motor Co. rose 1.9 percent after posting a surge in second-quarter profits, thanks to consumers paying big money for fully-loaded versions of the new aluminum-bodied F-150 pickup.

     Baidu dropped the most since November 2008 after China’s largest search engine company projected sales for this quarter that trailed analysts’ estimates amid a weakening economy. China is on course for its slowest pace of annual growth in a quarter- century, and Baidu earns virtually all of its revenue in the country.

     DuPont Co. lost 1.5 percent after cutting its full-year profit forecast to adjust for the spinoff of its performance chemicals unit and the impact of lower crop prices, which are causing farmers to spend less on the company’s pesticides and seeds.
 

Have a wonderful evening everyone.

 

Be magnificent!

When you look at that unchanging Existence

from the outside, you call it God;

and when you look at it from the inside,

you call it yourself.  It is but one.

Swami Vivekananda

 

As ever,
 

Carolann

 

Failure is an event – never  a person.

        -William D. Brown, 1813-1868

 

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:

We had the magical west coast sail over to Roche Harbour on San Juan Island on Saturday with a pod of majestic killer whales to accompany us for part of the journey, seemingly dancing around the boat.  Hope your weekend was great too.  Another week begins…

Prime Numbers:

7.256 billion – World population (est.) as of July 1, 2015.

46 –  Percentage of smart phone users who say they can’t imagine life without one.

14 – Date in July that the snow farm in South Boston finally was completely melted.  Boston received a record 110.6 inches of snow last winter.

Sources: US Census Bureau, Boston Globe

PHOTOS OF THE DAY

A museum employee arranges one of Zak Ove’s ‘Moko Jumbie’ sculptures, installed at the British Museum in London, Monday. As part of the ‘Celebrating Africa’ exhibition, the British-Trinidadian artist Zak Ove has created two ‘Moko Jumbie’ sculptures. These spectacular seven-meter-tall carnival figures on stilts are on display in the Great Court at the British Museum. Frank Augstein/AP

Cambodian dancers perform a local dance called ‘Ting Moang’ during Buddhist Lent in Barach village, Cambodia, Monday. Cambodians are holding a week-long march to mark the Buddhist Lent, during which, according to tradition, monks are barred from traveling for three months during the rainy season. Almost 90 percent of Cambodia’s population of 14 million practice Buddhism. Heng Sinith/AP

Market Closes for July 27^th, 2015

Market Index	Close	Change
Dow Jones	17440.59	-127.94     -0.73%
S&P 500	2064.96	-14.69     -0.71%
NASDAQ	5039.777	-48.852     -0.96%
TSX	13960.90	-225.34
		-1.59%

International Markets

Market Index	Close	Change
NIKKEI	20350.10	-194.43
		-0.95%
HANG SENG	24351.96	-776.55
		-3.09%
SENSEX	27561.38	-550.93
		-1.96%
FTSE 100	6505.13	-74.68
		-1.13%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.456	1.489
CND. 30 Year Bond	2.127	2.153
U.S.    10 Year Bond	2.2158	2.2606
U.S. 30 Year Bond	2.9327	2.9610

Currencies

BOC Close	Today	Previous
Canadian $	0.76727	0.76681
US $	1.30333	1.30410
Euro Rate 1 Euro=		Inverse
Canadian $	1.44595	0.69159
US $	1.10943	0.90136

Commodities

Gold	Close	Previous
London Gold Fix	1100.00	1080.80
Oil	Close	Previous
WTI Crude Future	47.39	47.99

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell a seventh day, the longest losing streak in four years, amid growing concern the global economy is stalling after Chinese shares slumped the most in eight years.

     Sherritt International Corp. and First Majestic Silver Corp. plunged at least 12 percent as copper slid to a six-year low to lead a retreat in base metals. Bankers Petroleum Ltd. and Enerplus Corp. tumbled more than 10 percent as energy stocks extended an April 2009 low. Restaurant Brands International Inc., owner of the Tim Hortons and Burger King franchises, jumped 3.9 percent as chicken fries helped sales.

     Producers of energy and raw materials, which account for about 30 percent of the equity benchmark, are the worst- performing stocks in Canada this year amid a rout in commodities. The Bloomberg Commodity Index of 22 raw materials dropped 1.2 percent for a fourth day of declines to a 13-year low.

     The Standard & Poor’s/TSX Composite Index fell 184.87 points, or 1.3 percent, to 14,001.37 at 4 p.m. in Toronto. The gauge has fallen 10 percent from an all-time record on Sept. 3 and is 9.4 percent below an April 15 high.

     China’s Shanghai Composite Index plunged 8.5 percent, the biggest slump since February 2007. Monday’s retreat shattered the sense of calm that had fallen over mainland markets after stocks had earlier rallied on unprecedented government intervention.

     The MSCI All-Country World Index, which includes emerging markets, lost 0.9 percent for a fifth day of declines. The benchmark S&P 500 lost 0.6 percent in New York and the Stoxx Europe 600 Index sank 2.2 percent.

     Royal Bank of Canada dropped 1.4 percent and Encana Corp.declined 5.8 percent as financial services and energy industries lost at least 1.6 percent. Raw-materials producers crumbled 3.1 percent, to a December 2008 low. Nine of 10 groups in the S&P/TSX retreated on trading volume 13 percent higher than the 30-day average.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks fell, with equities posting their longest losing streak since January, after the biggest slump in eight years for Chinese shares amid concern over the nation’s economic growth.

     Apple Inc. slipped 1.4 percent after its worst week in six months. Baidu Inc., China’s largest search engine, lost 4.2 percent. Alibaba Group Holding Ltd. retreated 2 percent. Energy shares dropped as oil sank into a bear market. Teva Pharmaceutical Industries Ltd. surged 16 percent after agreeing to buy Allergan Plc’s generic-drug business for $40.5 billion. Allergan added 6.1 percent.

     The Standard & Poor’s 500 Index slid 0.6 percent to 2,067.64 at 4 p.m. in New York, after touching its average price during the past 200 days. The Dow Jones Industrial Average lost 127.94 points, or 0.7 percent, to 17,440.59, reaching its lowest level since February. The Nasdaq Composite Index fell 1 percent.

     “The situation in China is causing concern, particularly for international companies that get a good portion of their sales from overseas,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts. “We’re already starting to see cracks in the earnings picture, so if global growth is going to slow, that will make the cracks bigger.”

     A report today showed industrial profits in the world’s second-biggest economy fell in June, sending Chinese shares tumbling on speculation a government intervention to stem a market selloff can’t be sustained amid weak growth. Data Friday showed a private manufacturing gauge unexpectedly declined in July to a 15-month low.                      

     The S&P 500 has declined for four weeks out of five, and ended Monday 3 percent away from its May closing record. The benchmark measure is up 0.2 percent for the month. The bull market that already rivals anything since World War II in duration is showing signs of fatigue, as U.S. equities are being pushed along by the fewest stocks in more than 15 years.

     More than 100 percent of this year’s increase in the S&P 500 is attributable to two sectors, health-care and retail. That’s the tightest clustering for an advancing year since at least 2000, data compiled by Bloomberg show.

     Investors continue to assess data to gauge the economy’s strength, and when the Federal Reserve might raise borrowing costs. A report today showed orders for business equipment rose in June for just the second time this year as U.S. factories start to regain their footing after a weak spell.

     The Fed begins a two-day meeting Tuesday as policy makers debate the timing for higher interest rates. Economists surveyed by Bloomberg continued to put the odds for a September rate increase at 50 percent. Fed Chair Janet Yellen has recently signaled that the central bank is likely to raise rates this year, while emphasizing a gradual pace for subsequent increases.

     “There’s a number of indicators such as the commodity prices and China showing a slowing global growth,” said Stewart Richardson, chief investment officer at RMG Wealth Management LLP in London. “Any further deterioration in the financial markets that could be triggered by China would push back a rate hike.”

     Investors are also watching the earnings season, with more than 170 members of the S&P 500 due to report this week. Of the firms that have already done so, about three-quarters beat profit estimates and more than half topped sales projections. Analysts have moderated projections for a drop in second-quarter earnings to 4 percent, from 6.4 percent on July 10.

     The Chicago Board Options Exchange Volatility Index rose 14 percent Monday to 15.60, a two-week high. The gauge, know as the VIX, rose 15 percent last week, its fifth gain in six weeks. About 7.3 billion shares traded hands on U.S. exchanges, 13 percent above the three-month average.

     Nine of the S&P 500’s 10 main groups retreated, led by energy, technology and raw-material shares. Banks slumped as Treasury yields fell to two-week lows. The SPDR Barclays High- Yield Bond ETF slid 0.4 percent to its lowest level since December.

     The KBW Bank Index had rallied 7.3 percent in the two weeks through last Wednesday amid lenders’ better-than-estimated earnings and improved prospects for profits as yields rose. Comerica Inc. and JPMorgan Chase & Co. decreased more than 1.3 percent today.

     Miner Freeport-McMoRan Inc. declined 7.5 percent and shares are down 28 percent in the last four sessions, the worst such stretch in more than six years. Copper slid to the lowest in six years amid concerns about China’s economy. Newmont Mining Corp. lost 3.3 percent to a 14-year low, falling in 10 of the last 12 sessions.                       

     Facebook Inc. fell 2.9 percent, the most since January, to weigh on the tech group ahead of the social network’s earnings report Wednesday. Shares had rallied 15 percent in nine sessions through July 21. Chipmakers Skyworks Solutions Inc. and Qorvo Inc. sank at least 3.2 percent, while Microsoft Corp. slumped 1.3 percent.

     Mylan NV plunged 15 percent, its biggest slide in more than six years, after Teva abandoned its hostile takeover bid for the company upon finding a friendlier merger partner. The Nasdaq Biotechnology Index fell 1.1 percent to a more than two-week low. The gauge has slipped for five straight days, the longest such streak since April. Xoma Corp. lost 13 percent, while Incyte Corp. decreased 3.8 percent.

     Energy stocks in the S&P 500 fell along with the price of crude oil. The resource, which has declined in eight out of the last nine trading sessions, slid 1.6 percent, extending its loss for the period to 11 percent. Phillips 66, Marathon Petroleum Corp. and Valero Energy Corp. paced the drop, retreating more than 2 percent.                      

     Companies reliant on China for sales declined on the day. Yum! Brands Inc., the third most-exposed U.S.-listed company with 52 percent of revenue coming from the emerging nation, decreased 0.8 percent. Apple, which got 17 percent of sales from China in 2014, lost 1.4 percent.

     China-based companies trading in the U.S. also saw declines, with Sohu.com Inc., Baidu and Alibaba falling more than 1.9 percent. Yahoo! Inc., which is a major shareholder in Alibaba, dropped 2.6 percent.

     McGraw Hill Financial Inc. lost 5.7 percent, the biggest drop
in more than two years, after agreeing to buy SNL Financial for about $2.2 billion to add content on the banking and insurance industries.

     Republic Airways Holdings Inc. plummeted 56 percent, the most ever, after saying a worsening pilot shortage may create more disruptions in flights the carrier makes for larger airlines. A Bloomberg index of U.S. airlines fell for a second straight day as JetBlue Airways Corp. and Spirit Airlines Inc. slid more than 0.9 percent.

     Utility companies in the S&P 500 added 1.3 percent, as the drop in Treasury yields makes the group’s dividend payout look more attractive. PG&E Corp. and American Electric Power Co. gained more than 2 percent.

     Beacon Roofing Supply Inc. jumped 8.7 percent, the most in more than six years, after agreeing to buy Roofing Supply Group for $1.1 billion from buyout firm Clayton, Dubilier & Rice.

     Biogen Inc. rose 3.1 percent, and earlier as much as 8.3 percent, following its biggest drop in almost seven years Friday after the drugmaker cut its 2015 outlook. Shares climbed Monday as analysts speculated the company could become the industry’s next takeover target.
 

Have a wonderful evening everyone.

 

Be magnificent!

In all religions of the world you will find it claimed that there is unity within us.

Being one with divinity, there cannot be any further progress in that sense.

Knowledge means finding this unity.

Swami Vivekananda

As ever,

 

Carolann

 

In summer, the song sings itself.

 -William Carlos Williams, 1883-1963

 

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 1911, Machu Picchu was discovered by American archeologist Hiram Bingham.

And it looks like there are civilizations yet to be discovered in future….exciting!
In the news

• NASA finds ‘Earth’s bigger, older cousin’

CNN – 23 hours ago

… first nearly Earth-size planet to be found in the habitable zone of a star similar to our own.

• Kepler 452b: NASA discovers planet orbiting ‘cousin’ of sun in closest match to Earth yet!

PHOTOS OF THE DAY

A competitor jumps from a cliff during a cliff diving competition in the Maggia valley in Ponte Brolla, southern Switzerland, Friday. Samuel Golay/Keystone/AP

A man rides his bicycle between taxis parked on the street during a protest against the online car-sharing service Uber in Rio de Janeiro on Friday. Ricardo Moraes/Reuters

Market Closes for July 24^th, 2015

Market Index	Close	Change
Dow Jones	17568.53	-163.39     -0.92%
S&P 500	2080.83	-21.32       -1.01%
NASDAQ	5088.629	-57.780     -1.12%
TSX	14152.28	-113.09
		-0.79%

International Markets

Market Index	Close	Change
NIKKEI	20544.53	-139.42
		-0.67%
HANG SENG	25128.51	-270.34
		-1.06%
SENSEX	28112.31	-258.53
		-0.91%
FTSE 100	6579.81	-75.20
		-1.13%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.489	1.502
CND. 30 Year Bond	2.153	2.172
U.S.    10 Year Bond	2.2606	2.2713
U.S. 30 Year Bond	2.9610	2.9721

Currencies

BOC Close	Today	Previous
Canadian $	0.76681	0.76693
US $	1.30410	1.30390
Euro Rate 1 Euro=		Inverse
Canadian $	1.43159	0.69852
US $	1.09777	0.91094

Commodities

Gold	Close	Previous
London Gold Fix	1080.80	1097.40
Oil	Close	Previous
WTI Crude Future	47.99	48.25

It isn’t  the incompetent who destroy an organization.  It is those who have achieved something and want to rest upon their achievements who are forever clogging things up. – Charles E. Sorenson (Danish-American engineer, officer , director of Ford Motor Co. 1907-1950, helped develop 1^st auto assembly line, 1881-1968).

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — The sustained slump in global commodity prices has pushed Canadian stocks to the longest losing streak in two years.

     Encana Corp. tumbled 8.6 percent after the company posted a wider operating loss than estimated. Baytex Energy Corp. decreased 8.2 percent as U.S. crude traded in a bear market. Valeant Pharmaceuticals International Inc. lost 1 percent to snap a two-day gain after overtaking Royal Bank of Canada as the nation’s largest company by market value.

     Producers of energy and raw materials, which account for about 30 percent of the equity benchmark, are the worst- performing stocks in Canada this year amid a rout in commodities on concern global economic growth is slowing. The Bloomberg Commodity Index of 22 raw materials dropped 1.2 percent for a third day of declines, extending a 13-year low.

     The Standard & Poor’s/TSX Composite Index fell 79.13 points, or 0.6 percent, to 14,186.24 at 4 p.m. in Toronto, a sixth straight decline. The gauge has fallen 3.5 percent, to a January low, during its current six-day slide, the longest streak since June 2013 and is now lower by 3.1 percent on the year.

     Suncor Energy Inc. dropped 1.7 percent and Canadian Oil Sands Ltd. sank 5.9 percent as energy producers lost 1.3 percent as a group to an April 2009 low. Six of 10 industries in the S&P/TSX retreated on trading volume 27 percent higher than the 30-day average.

     Encana tumbled 8.6 percent, extending a July 2002 low. The company’s full-year production forecast doesn’t seem to be achievable, BMO Capital Markets analyst Randy Ollenberger said in a note.

     Encana was also expected to announce staff cuts of about 200 people, the Globe and Mail reported, according to an internal memo.

     Companies in the benchmark equity gauge are expected to report a 39 percent slump in earnings per share in the latest earnings season, the worst in six years, according to data compiled by Bloomberg. More than 200 companies in the S&P/TSX are set to report earnings by the end of August.

     Teck Resources Ltd. slumped 6.8 percent and First Quantum Minerals Ltd. lost 2.3 percent as copper touched the lowest price since 2009. Chinese preliminary manufacturing data from Caixin Media and Markit Economics unexpectedly fell to the lowest in 15 months.

US

By Joseph Ciolli and Callie Bost

     (Bloomberg) — U.S. stocks fell, with the Dow Jones Industrial Average posting its worst week since January, as biotechnology shares slumped and raw-material producers sank amid fresh signs of a slowdown in China.

     Biogen Inc. lost 22 percent after cutting its 2015 earnings forecast. Raw-material and energy shares in the Standard & Poor’s 500 Index fell at least 1.9 percent. Amazon surged 9.8 percent, while Visa Inc. gained 4.3 percent after profits beat predictions. An index of homebuilders decreased 2.6 percent after new-home sales unexpectedly dropped.

     The S&P 500 dropped 1.1 percent to 2,079.65 at 4 p.m. in New York, and marked its biggest weekly loss in four months. The Dow Jones Industrial Average declined 163.39 points, or 0.9 percent to 17,568.53, and fell 2.9 percent on the week. The Nasdaq Composite Index decreased 1.1 percent to complete its worst week since March after closing at a record Monday.

     “Certainly the ongoing collapse in commodity prices emanating from weak data in China and weak earnings reports from companies because of China, such as Caterpillar, are weighing on the market,” said Jim Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management Inc. His firm oversees $351 billion. “We’ve got a pretty big collapse going on here.”

     A private gauge of Chinese manufacturing unexpectedly fell to the lowest in 15 months, reinforcing the need for further policy support in an economy that had seen signs of stabilization recently. A separate report showed sales of new homes in the U.S. dropped to a seven-month low, surprising economists who forecast a gain and painting a picture of less robust improvement during the industry’s busiest time of year.

     The S&P 500 lost 2.2 percent this week, its worst since March and the fourth weekly decline out of five, after briefly rising Monday above the all-time closing high. The gauge is 2.4 percent away from its May record, after sliding as much as 4 percent from the high as concerns about Greece’s debt crisis and China’s stock market rout weighed on sentiment.

     Investors are also watching economic reports for clues on when the Federal Reserve will start raising interest rates. Along with the housing data, a separate report today said a July gauge of U.S. manufacturing improved slightly from the weakest reading since October 2013.

     Economists surveyed by Bloomberg continued to put the odds for a September rate increase at 50 percent, even after Greece and China temporarily rocked markets. Fed policy makers gather for a two-day meeting on Tuesday and Wednesday next week.

     Meanwhile, earnings season has been spotty so far, with sluggish demand overseas damping returns for U.S. multinational companies at the same time the dollar has strengthened to near the highest level since April.

     From Apple Inc. to Caterpillar Inc. and Microsoft Corp., a parade of blue chips have disappointed investors in the past two weeks. The impact has been the most pronounced on the Dow, which had its worst week since January. Analysts now call for a 4 percent drop in second-quarter profit for the equity gauge’s members, shallower than July 17 estimates for a 5.3 percent decline.

     The Chicago Board Options Exchange Volatility Index rose 8.7 percent Friday to 13.74. The gauge, know as the VIX, rose 15 percent for the week after it tumbled 29 percent last week, the biggest such slide since January. About 7.3 billion shares traded hands on U.S. exchanges, 14 percent above the three-month average.

     Nine of the S&P 500’s 10 main groups retreated, led by raw- materials, energy and health-care shares. Biogen Inc. plummeted 22 percent, the biggest drop in almost seven years, after the biotech company lowered its forecast for 2015 profit and sales, revising expectations for growth as its top-selling multiple sclerosis drug faces tougher competition.                       

     The Nasdaq Biotechnology Index fell 4 percent, the most since April 27. Gilead Sciences Inc. and Celgene Corp. declined at least 2.9 percent, while Vertex Pharmaceuticals lost 4.1 percent.

     Raw-material stocks in the index slipped 2.2 percent. A gauge of commodities dropped 1.1 percent to its lowest level since Jan. 29. Freeport-McMoRan Inc., the copper miner that bet big on the energy market two years ago, fell 9.9 percent to its lowest since January 2009 after it failed to offer investors a plan to withstand plunging prices for almost everything it produces.

     Dow Chemical Co. sank to a more than five-month low, down 3.8 percent and falling for a sixth day, the longest losing streak in a year. DuPont Co. decreased 2.6 percent to its lowest in nearly 18 months.

     Energy companies in the benchmark index tumbled 2 percent, as crude oil fell for a third day. The resource, which fell more than 5 percent for the week, is back in a bear market. Helmerich & Payne Inc. and Ensco Plc lost more than 4.9 percent to pace the declines. Chevron Corp. declined 2.5 percent to its lowest since Oct. 2011. Exxon Mobil Corp. fell 1.5 percent.

     “We’re seeing commodities and energy sink very low, and you’re seeing profit-taking in some high-multiple health-care names,” said Tim Ghriskey, who helps oversee $1.5 billion as managing director and chief investment officer at Solaris Asset Management. “There’s a bit of fear there’s going to be more to this selloff. The Chinese PMI showed an even worse contraction in China, and that’s also having a negative effect.”

     Capital One Financial Corp. dropped 13 percent, the most in more than six years, after reporting a profit that missed analysts’ estimates as the lender set aside $1.1 billion to cover credit losses. American Express Co. posted its biggest two-day slide in three months, losing 1.4 percent on top of a 2.5 percent retreat Thursday after its quarterly results disappointed.

     TripAdvisor Inc. plunged 13 percent after quarterly profit and sales missed analysts’ estimates. Shares fell the most since November after reaching a 10-month high on Thursday.

     Amazon rose as much as 20 percent to an all-time high as the Web retailer posted a surprise profit that showed investors it can make money when it puts brakes on investments. It is now the world’s biggest retailer by market value, surpassing Wal- Mart Stores Inc. Amazon’s chairman and largest shareholder Jeff Bezos added more than $7 billion to his personal fortune on the share price move.

     Starbucks Corp. gained 1.3 percent to a record after posting a quarterly profit that topped analysts’ estimates, helped by new beverages and the growth of its loyalty program.

     Juniper Networks Inc. advanced 4 percent, the most in two months, after projecting third-quarter results that may top analysts’ estimates and reiterated its forecast for improved spending on networking equipment in the second half.

 

Have a fabulous weekend everyone.

 

Be magnificent!

As long as there is division in any form

there must be conflict.

You are responsible, not only to your children,

but to the rest of humanity.

Unless you deeply understand this, not through words or ideas or the intellect,

but feel this in your blood, in your way of looking at life, in your actions,

you are supporting organized murder which is called war.

Krishnamurti

As ever,

 

Carolann

 

Success is how high you bounce when you hit the bottom.

                                      -George S. Patton, 1885-1945

 

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

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7