Category: Events

Dear Friends,

Tangents:

On July 23, 1914, Austria-Hungary issued an ultimatum to Serbia following the killing of Archduke Francis Ferdinand by a Serb assassin; the dispute led to World War I.

THE SUMMER DAY
              -Mary Oliver

Who made the world?
Who made the swan, and the black bear?
Who made the grasshopper?
This grasshopper I mean
the one who has flung herself out of the grass,
the one who is eating sugar out of my hand,
who is moving her jaws back and forth instead of up and down,
who is gazing around with her enormous and complicated eyes.
Now she lifts her pale forearms and thoroughly washes her face.
Now she snaps her wings open, and floats away.
I don’t know exactly what a prayer is.
I do know how to pay attention, how to fall down
into the grass, how to kneel down in the grass,
how to be idle and blessed, how to stroll through the fields,
which is what I have been doing all day.
Tell me, what else should I have done?
Doesn’t everything die at last, and too soon?
Tell me, what is it you plan to do with your one wild and precious life?

PHOTOS OF THE DAY

An exercise rider takes a horse for a morning workout at Saratoga Race Course, Thursday, in Saratoga Springs, N.Y. Saratoga kicks off its 147th summer of thoroughbred racing on Friday. Mike Groll/AP

Farmers use tires to write a message to French Prime Minister Manuel Valls, saying, ‘Valls, we are waiting for you,’ on the highway between Paris and Lyon in central France, Thursday. Angry French farmers have blocked the famed Mont Saint Michel causeway and highways leading to the Alps, hoping to get more government help for their industry whose profits they say are being chipped away by cheap imports and pressure from grocery chains. Thursday’s protests were a rejection of the government offer to back loans to the farmers and delay tax payments as part of a €600 million plan. Vincent Dargent/AP

Market Closes for July 23^rd, 2015

Market Index	Close	Change
Dow Jones	17731.95	-119.09     -0.67%
S&P 500	2102.20	-11.95     -0.57%
NASDAQ	5146.410	-25.359     -0.49%
TSX	14228.23	-78.89
		-0.55%

International Markets

Market Index	Close	Change
NIKKEI	20683.95	+90.28
		+0.44%
HANG SENG	25398.85	+116.23
		+0.46%
SENSEX	28370.84	-134.09
		-0.47%
FTSE 100	6655.01	-12.33
		-0.18%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.502	1.543
CND. 30 Year Bond	2.172	2.222
U.S.    10 Year Bond	2.2713	2.3235
U.S. 30 Year Bond	2.9721	3.0367

Currencies

BOC Close	Today	Previous
Canadian $	0.76693	0.76744
US $	1.30390	1.30303
Euro Rate 1 Euro=		Inverse
Canadian $	1.43236	0.69815
US $	1.09852	0.91032

Commodities

Gold	Close	Previous
London Gold Fix	1097.40	1088.60
Oil	Close	Previous
WTI Crude Future	48.25	48.87

I’d be a  bum on the street with a tin cup, if the markets were always efficient. –Warren Buffett.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada’s commodity problems continued, as energy and mining stocks resumed slides that sent the nation’s benchmark index to a fifth day of losses.

     Trilogy Energy Corp. sank 6.3 percent as energy producers extended a 2009 low with U.S. crude collapsing into a bear market. First Quantum Minerals Ltd. lost 8.1 percent to lead a 2.8 percent drop in mining stocks. Rogers Communications Inc. jumped to a five-month high and Loblaw Cos. rallied amid earnings. Valeant Pharmaceuticals International Inc. surged 5.7 percent, 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 percent for a second day of declines, extending a 13-year low.

     The Standard & Poor’s/TSX Composite Index fell 41.75 points, or 0.3 percent, to 14,265.37 at 4 p.m. in Toronto, a January low. The gauge has fallen 3.3 percent during its current five-day slide. The gauge is now lower by 2.5 percent on the year.

     Seven of 10 industries in the S&P/TSX dropped on trading volume 22 percent higher than the 30-day average today. Raw- materials producers traded at a December 2008 low.

     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.

     Among stocks moving on results Thursday, Valeant climbed 5.7 percent and Loblaw gained 3.4 percent, to a 10-year high, after the companies reported better-than-forecast earnings. Superior Plus Corp. sank 12 percent, the most since 2011, after disclosing preliminary second-quarter results worse than year- ago figures.

US

By Callie Bost

     (Bloomberg) — U.S. stocks fell for a third day, as results from 3M Co. and Caterpillar Inc. disappointed investors and commodities continued to slide.

     3M and Caterpillar dropped at least 3.6 percent after both cut their sales forecasts. Miner Freeport-McMoRan Inc. plunged 9.4 percent as metals prices continued to retreat. General Motors Co. jumped 4.2 percent as rising truck sales boosted profits. Amazon.com Inc. and Visa Inc. rallied in late trading after results beat estimates.

     The Standard & Poor’s 500 Index fell 0.6 percent to 2,102.15 at 4 p.m. in New York, closing just below its average price during the past 50 days. The Dow Jones Industrial Average declined 119.12 points, or 0.7 percent, to 17,731.92, while the Nasdaq Composite Index lost 0.5 percent, erasing an earlier gain. About 7 billion shares changed hands on U.S. exchanges, 9 percent higher than the three-month average.

     “Investors have been somewhat surprised at how unimpressive earnings have been considering where the stock market is,” said Jeff Sica, who oversees over $1.5 billion as president and chief executive officer of Circle Squared Alternative Investments in Morristown, New Jersey. “Earnings have not proven to be the catalyst they’ve looked for. Investors are just very tentative.”

     Sluggish international markets are damping earnings at U.S. industrials giants. Caterpillar is selling fewer of its signature yellow diggers and dump trucks to miners amid the deepening slump in prices for copper, coal and iron ore. Sales of engines and generators to the energy industry also have been hurt by the slide in oil and natural gas prices.

     Analysts now call for a 5.3 percent drop in second-quarter profit for S&P 500 companies, shallower than July 10 estimates for a 6.4 percent decline.

     Amazon soared 19 percent as of 4:51 p.m. as quarterly revenue jumped 20 percent, buoyed by its fast-growing cloud computing business and efforts to lure more customers with online video and faster delivery of goods bought on the Web.

     Visa gained 6.5 percent as the world’s largest payments network said profit rose 25 percent as consumer spending increased.

     The S&P 500 has gone without a fresh peak for the longest stretch since 2013, stuck in a pattern of nearing an all-time high without breaking it for two months now. The gauge is 1.4 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. Data today showed jobless claims plunged to the lowest level in four decades. A separate report said the index of U.S. leading economic indicators climbed more than forecast in June as historically low borrowing costs and a rebound in housing propelled growth.

     Economists surveyed by Bloomberg put odds for a September Fed rate increase at 50 percent, exactly where they were in June. The outlook for a September move remained intact even as crises in Greece and China temporarily rocked markets and dimmed global economic prospects.

     The Chicago Board Options Exchange Volatility Index rose 4.3 percent Thursday to 12.64. The gauge, know as the VIX, is up 5.8 percent for the week after it tumbled 29 percent last week, the biggest such slide since January.                       

     Utility and raw-material companies fell the most, as all of the S&P 500’s 10 main groups retreated. Freeport-McMoRan sank 9.4 percent, amid uncertainty about the copper producer’s direction. Dow Chemical Co. lost 4.5 percent, the most this year, as second-quarter sales were below estimates.

     Transportation companies sank for the third time in four days, with Union Pacific Corp. dropping 5.7 percent, the most since Sept. 2011. The railroad’s chief financial officer said profits this year are unlikely to grow after 2014’s record. Kansas City Southern and Norfolk Southern Corp. slipped at least 2.2 percent. The Dow Jones Transportation Average lost 2.1 percent.

     United Rentals Inc. dropped almost 14 percent to its lowest since Nov. 2013, pacing declines with Caterpillar and 3M in the industrials group. The construction-equipment rental company cut its 2015 revenue outlook.

     American Express fell the most in three weeks, while Discover Financial Services decreased 4.2 percent, its biggest slide since its quarterly report in January. Discover’s second- quarter revenue was below analysts’ forecasts.                         

     The technology group declined after a brief rebound from the worst drop in two weeks. Qualcomm Inc. fell 3.8 percent after posting its biggest sales decline since 2009. That offset some of SanDisk’s Corp.’s 18 percent rally on its  better-than- estimated results.

     Google Inc. and Facebook Inc. slid more than 1.6 percent. Apple was little changed, erasing an earlier 1.5 percent climb, after its largest retreat in almost 18 months.

     Semiconductors climbed for the first time in five sessions as Skyworks Solutions Inc. and Micron Technology Inc. rallied more than 3.4 percent. Texas Instruments Inc. gained 2.5 percent.

     A Bloomberg gauge of U.S. airlines advanced for a third day to a two-month high. Southwest Airlines Co. jumped 3.9 percent after saying it would accelerate the pace of stock buybacks.

American Airlines Group Inc. and Spirit Airlines Inc. added more than 2.2 percent.

     Under Armour Inc. jumped 7.3 percent, the most in a year, to an all-time high. The athletic-gear maker’s second-quarter earnings topped analysts’ estimates, helped by a push into footwear and other new products.

 

Have a wonderful evening everyone.

 

Be magnificent!

When you believe that the truth is living, moving, that it does not have one home or rest in any temple,

mosque, or church, in any religion, master or philosopher – in short, that nothing can lead you to it-

you will see also that you are this living thing in every respect;

it is your anger, your brutality, your violence, your despair.

It is the agony and the pain that you live through.  The truth is in the comprehension of all of this;

you cannot comprehend it unless you are determined to see it in your life.

 

Krishnamurti

As ever,

 

Carolann

 

Happiness is when what you think, what you say, and what you do are in harmony.

                                                                      -Mohandas Gandhi, 1869-1948

 

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

Dear Friends,

Tangents:

July 22, 1376: Pied Piper of Hamelin, Germany:

The story is that the town of Hamelin (Hameln), in Wesphalia, was infested with rats in 1284, and that a mysterious piper in a parti-colored suit appeared in the town and offered to rid it of vermin for a certain sum., which offer was accepted by the townspeople.  The Pied Piper fulfilled his contract, but payment was not forthcoming.  On the following St. John’s Day, he reappeared and again played hi pipe.  This time all the children followed him and he led them to a mountain cave, where all disappeared save two: one blind, the other dumb or lame. Another version is that they were led to Transylvania where they formed a German colony.  The story, familiar in England from Robert Browning’s poem (1842), appeared earlier in James Howell’s Familiar Letters (1645-55).  The legend has its roots in the story of the Children’s Crusade.

July 22, 1844, Charles Dickens writes from Italy to the painter Daniel Maclise:

But such green – green – green – as flutters in the vineyard down below the windows, that I never saw; nor yet such lilac, and such purple as float between me and the distant hills; nor yet – in anything – picture, book, or verbal boredom – such awful, solemn, impenetrable blue, as is that same sea.  It has such an absorbing, silent, deep, profound effect, that I can’t help thinking it suggested the idea of Styx.   It looks as if a draught of it – only so much as you cold scoop up on the beach, in the hollow of your hand – would wash out everything else, and make a great blue blank of your intellect.

The Styx was one of the rivers of the Underworld.  From what Dickens goes on to say, it would seem he actually means another of them, Lethe: if you drank from Lethe, you forgot the past.

PHOTOS OF THE DAY

A member of a German team adjusts a humanoid robot during the 2015 Robocup finals in Hefei, Anhui province, China, Wednesday. The Robocup, or ‘Robot Soccer World Cup,’ is an annual international robotics competition. Stringer/Reuters

A detail of a fragment of a Quran manuscript is shown through a magnifying glass in the library at the University of Birmingham in England, Wednesday. Fragments of the Quran manuscript found in the university’s library are from one of the oldest surviving copies of the Islamic text in the world, possibly written by someone who might have known the Prophet Mohammad. Radiocarbon dating indicated that the parchment folios are at least 1,370 years old, which would make them one of the earliest written forms of the Islamic holy book in existence. Peter Nicholls/Reuters

Market Closes for July 22^nd, 2015

Market Index	Close	Change
Dow Jones	17851.04	-68.25     -0.38%
S&P 500	2114.15	-5.06     -0.24%
NASDAQ	5171.770	-36.351     -0.70%
TSX	14307.12	-69.12
		-0.48%

International Markets

Market Index	Close	Change
NIKKEI	20593.67	-248.30
		-1.19%
HANG SENG	25282.62	-253.81
		-0.99%
SENSEX	28504.93	+322.79
		+1.15%
FTSE 100	6667.34	-101.73
		-1.50%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.543	1.566
CND. 30 Year Bond	2.222	2.249
U.S.    10 Year Bond	2.3235	2.3253
U.S. 30 Year Bond	3.0367	3.0617

Currencies

BOC Close	Today	Previous
Canadian $	0.76744	0.76933
US $	1.30303	1.29983
Euro Rate 1 Euro=		Inverse
Canadian $	1.42369	0.70240
US $	1.09260	0.91525

Commodities

Gold	Close	Previous
London Gold Fix	1088.60	1105.60
Oil	Close	Previous
WTI Crude Future	48.87	50.36

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks capped the longest losing streak since January as a deepening of the commodities rout pushed shares in materials producers to the lowest level since 2008.

     First Quantum Minerals Ltd. and Teck Resources Ltd. retreated at least 2.5 percent as the selloff in gold spread to metals from copper to zinc and tin. Energy producers continued their slide, with the group sinking to a six-year low as crude fell below $50 a barrel in New York. Bombardier Inc. slumped 3.9 percent to an August 1993 low, on concern demand is weakening for business jets.

     The selloff in commodities, with gold slumping a 10th day in the longest run of losses since 1996, is squeezing miners around the world. 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.

     The Standard & Poor’s/TSX Composite Index fell 69.12 points, or 0.5 percent, to 14,307.12 at 4 p.m. in Toronto, for a fourth day of losses. The gauge is lower by 2.2 percent on the year.

     The Bloomberg Commodity Index of 22 raw materials resumed declines, slipping 1.1 percent to an April 2002 low. Barrick Gold Corp. lost 0.9 percent for a ninth decline in 10 days, touching a 1990 low, and Iamgold Corp. fell 6.3 percent as raw- materials producers sank 0.9 percent as a group.

     Five of 10 industries in the S&P/TSX fell on trading volume 25 percent higher than the 30-day average today.

     Energy producers declined 1.5 percent for a fourth straight decline. Oil fell 3.3 percent in New York, approaching a bear market, or 20 percent drop from a June peak.

     West Fraser Timber Co. sank 4.2 percent to lead a drop among lumber products companies after reporting second-quarter profit short of analysts’ estimates.

US

By Callie Bost

     (Bloomberg) — The Nasdaq Composite Index slumped the most in two weeks as disappointing results from Apple Inc., Microsoft Corp. and Yahoo! Inc. rippled through technology stocks.

     Apple fell 4.2 percent after iPhone sales and revenue forecast missed estimates. Microsoft lost 3.7 percent after posting its largest-ever quarterly loss. Yahoo forecast sales that were below projections, sending its shares lower. Chipotle Mexican Grill Inc. jumped 7.8 percent after quarterly profit beat estimates and the company announced a stock buyback.

     The Nasdaq Composite slid 0.7 percent to 5,171.77 at 4 p.m. in New York. The Standard & Poor’s 500 Index erased 0.2 percent to 2,114.15. A bank rally, as well as positive results from Whirlpool Corp. and Chipotle, helped temper the benchmark’s decline. The Dow Jones Industrial Average sank 68.25 points, or 0.4 percent, to 17,851.04.

     “Investors are cautious because some of the bigger names have missed expectations,” said Robert Pavlik, who helps oversee $9.1 billion as chief market strategist at Boston Private Wealth. “The two giants reporting is what’s causing the weakness today. Earnings season really isn’t that bad.”

     Hopes were high for the industry as earnings season began, with technology shares leading a rebound in U.S. equities after overseas tensions eased. The Nasdaq Composite Index rallied to an all-time high on July 17 after Google Inc. surged 16 percent on its results, adding $65 billion to its market capitalization.

     Apple slid after releasing results late Tuesday. IPhone shipments for the fiscal third quarter and the company’s revenue forecast for the current period missed analysts’ projections, raising questions over whether demand for the device has peaked.

     As Apple’s biggest fall in nearly 18 months wiped more than $32 billion from its value, its results hit shares of suppliers worldwide. Cirrus Logic Inc., Skyworks Solutions Inc. and Avago Technologies Ltd. each slumped more than 3.6 percent.

     Adding to the bad news in the tech sector, Microsoft dropped the most since January following its largest-ever quarterly net loss, hurt by a $7.5 billion writedown after the purchase of Nokia’s handset unit failed to rescue the company’s mobile business.

     Yahoo fell 1.2 percent, and earlier as much as 3.7 percent, after forecasting sales in the current quarter below analysts’ estimates, a sign Chief Executive Officer Marissa Mayer’s turnaround effort is still a work in progress.

     Qualcomm Inc. declined 2.5 percent in late trading as of 4:45 p.m., after posting its worst quarterly sales decline since 2009. The company plans to reduce costs by a total of $1.4 billion, and forecast fiscal fourth-quarter sales and profit that may fall short of analysts’ estimates.

     “It seems that the expectations are a little bit too high on the tech sector,” said Benno Galliker, a trader at Luzerner Kantonalbank AG in Lucerne, Switzerland. “The last weeks have been pretty good for the markets and everyone was a little over excited so it seems we’re going to be a bit more cautious over the next couple of days.”

     Some 27 S&P 500 companies were posting results today. Of those in the index that have reported so far, about three quarters beat earnings estimates and 55 percent have topped sales estimates.

     Beyond technology companies, there were some positive signs on earnings.

     Whirlpool gained 7.3 percent, its biggest rise this year, as profit beat forecasts and the company said it continues to expect a strong second-half performance.

     Intuitive Surgical Inc. jumped 8.9 percent, the most in a year, after the maker of robotic surgical devices raised its forecast for procedures performed in 2015, driven by growing demand for its da Vinci system.

     Chipotle also rallied the most in a year, to its highest since Feb. 3. Second-quarter profits topped analysts’ forecasts, helped by higher prices on its food.

     The Chicago Board Options Exchange Volatility Index fell 0.8 percent Wednesday to 12.12. The gauge, know as the VIX, tumbled 29 percent last week, the biggest such slide since January. About 6.9 billion shares changed hands on U.S. exchanges, 7 percent above the three-month average.

     “It’s a question of where leadership will come from,” said Yousef Abbasi, the global market strategist at JonesTrading Institutional Services LLC in New York. “Commodities are getting trounced again. That’s going to hurt energy, materials and industrials. Apple and Microsoft earnings didn’t look great, so you can rule tech out.”

     Five of the S&P 500’s 10 main groups declined, led by technology’s 1.6 percent slide, the most since the equity benchmark fell to a four-month low two weeks ago. Semiconductors decreased to a nine-month low. Linear Technology lost 6.3 percent, the most in more than six years, while Micron Technology Inc. and Qorvo Inc. slumped at least 4.2 percent.

     Caterpillar Inc. sank 3 percent, the most since January, and Joy Global Inc. lost 2.3 percent to a six-year low as the mining-equipment makers paced declines among industrial companies. Miner Freeport-McMoRan Inc. dropped 4.2 percent, nearly erasing a 4.5 percent rebound Tuesday. The Bloomberg Commodity Index fell back to a 13-year low after rising slightly yesterday.

     Diamond Offshore Drilling Inc. and Marathon Oil Corp. slumped more than 3.5 percent as oil prices fell for the fifth time in six sessions. Baker Hughes Inc. slid 3.9 percent, and earlier as much as 13 percent, after a person familiar with the matter said Halliburton Co.’s takeover of the oilfield services company is facing antitrust hurdles. Halliburton fell 0.8 percent.

     Investors are also watching economic reports for clues on when the Federal Reserve will move on interest rates. Data today showed sales of existing homes climbed 3.2 percent to an eight- year high in June as momentum in the residential real estate market accelerated. Prices rose to a record amid tight supply.

     An S&P gauge of homebuilders posted its biggest advance in five months, with Ryland Group Inc. and Toll Brothers Inc. rising more than 2.5 percent. June new-home sales data are scheduled for release Friday, with economists surveyed by Bloomberg predicting a 0.4 percent increase from the previous month.

     Banks in the S&P 500 rallied to their highest in seven years. Regions Financial Corp. added 2.8 percent to a 2.1 percent gain Tuesday, which followed quarterly results that were in line with estimates. KeyCorp, Bank of America Corp. and Comerica Inc. rose at least 1.7 percent. Citigroup Inc. climbed 2.1 percent to the highest since Jan. 2009.

 

Have a wonderful evening everyone.

 

Be magnificent!

We should never try to follow another’s path for that is his way, not yours.

When that path is found, you have nothing to do but fold your arms

and the tide will carry you to freedom.

Therefore when you find it, never swerve from it.

Your way is the best for you,

but that is no sign it is the best for another.

Swami Vivekananda

As ever,

 

Carolann

 

If little else, the brain is an educational toy.

                            -Tom Robbins, 1932-

 

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

Dear Friends,

Tangents:

On this day in 1925, John Thomas Scopes is convicted of teaching evolution in violation of Tennessee law ends and is ordered to pay a $100 fine. The verdict is overturned by the Tennessee Supreme Court in 1927.

PRIME NUMBERS:

83.1 MILLION

Millennial-generation Americans (born between 1982 and 2000).  Millennials now make up 25% of the US population; they surpassed baby boomers (75.4 million) in June.

18
Years old, the new voting age in Japan.  It takes effect next year.  Anew amendment lowered the voting age from 20.

2
Shots fired by police in Norway during all of 2014.  No one was injured.  This is a 33 percent decline from 2013, when three shots were fired.

11.61
Average profit (in US dollars) that world airlines make per customer.

                                                         – from CSM, July 20, 2015

 

Buzz Aldrin walking on the Moon by a leg of the lunar landing module, July, 1969.

On July 21, 1969,  Edwin E. (Buzz) Aldrin, the second man to set foot on the Moon in the Apollo II mission, communicated the following:

  The blue colour of my boot has completely disappeared now into this – still don’t know exactly what colour to describe this other than grayish cocoa colour.  It appears to be covering most of the lighter part of my boot….very fine particles…

  [Later]  The Moon was a very natural and pleasant environment in which to work.  It had many of the advantages of zero gravity, but it was in a sense less lonesome than Zero G, where you always have to pay attention to securing attachment points to give you some means of leverage.  In one-sixth gravity, on the Moon, you had a distinct feeling of being somewhere….As we deployed our experiments on the surface we had to jettison things like lanyards, retaining fasteners, etc., and some of these we tossed away.  The objects would go away with a slow, lazy motion.  If anyone tried to throw a baseball back and forth in that atmosphere he would have difficulty, at first, acclimatizing himself to that slow, lazy trajectory; but I believe he could adapt to it quite readily….

 Odour is very subjective, but to me there was a distinct smell to the lunar material – pungent, like gunpowder or spent cap-pistol caps.  We carted a fair amount of lunar dust back inside the vehicle with us, either on our suits and boots or on the conveyor system we used to get boxes and equipment back inside.  We did notice the odour right away.

PHOTOS OF THE DAY

Artist Alice Anderson poses near one of many of her copper wire installations at the Wellcome Collection Gallery in London, Tuesday. More than 100 sculptures entirely mummified in copper thread are on display at the exhibition, which starts July 22 and lasts through Oct. 18. Frank Augstein/AP

A bee gathers pollen from a sunflower in a field in Munich, Germany, Tuesday. Weather forecasts predict ongoing heat in Europe for the next few days. Matthias Schrader/AP

Market Closes for July 21^st, 2015

Market Index	Close	Change
Dow Jones	17919.29	-181.12     -1.00%
S&P 500	2119.21	-9.07     -0.43%
NASDAQ	5208.121	-10.738     -0.21%
TSX	14376.24	-49.31
		-0.34%

International Markets

Market Index	Close	Change
NIKKEI	20841.97	+191.05
		+0.93%
HANG SENG	25536.43	+131.62
		+0.52%
SENSEX	28182.14	-237.98
		-0.84%
FTSE 100	6769.07	-19.62
		-0.29%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.566	1.579
CND. 30 Year Bond	2.249	2.261
U.S.    10 Year Bond	2.3253	2.3741
U.S. 30 Year Bond	3.0617	3.1032

Currencies

BOC Close	Today	Previous
Canadian $	0.77237	0.76933
US $	1.29471	1.29983
Euro Rate 1 Euro=		Inverse
Canadian $	1.41624	0.70609
US $	1.09386	0.91419

Commodities

Gold	Close	Previous
London Gold Fix	1105.60	1104.60
Oil	Close	Previous
WTI Crude Future	50.36	50.15

What’s going on….is the end of Silicon Valley as we know it.  The next big thing ain’t computers….it’s biotechnology. –Larry Ellison  (Oracle CEO, quoted in the Wall Street Journal, April 8, 2003).

Market Commentary:

Canada

By Annelise Alexander

     (Bloomberg) — Canadian stocks fell, following the biggest decline in three weeks, as energy shares gave up an earlier advance to offset a rebound in gold producers.

     Barrick Gold Corp. and Yamana Gold Inc. rose more than 1 percent after a technical indicator showed the metal’s plunge to a five-year low may have been excessive. Raw-materials producers advanced 0.9 percent, the most of 10 industries in the Standard & Poor’s/TSX Composite Index. TransCanada Corp. and Suncor Energy Inc. slipped at least 1.5 percent as energy companies erased a rally of as much as 1.5 percent.

     The benchmark gauge lost 49.31 points, or 0.3 percent, to 14,376.24 at 4 p.m. in Toronto. The index has lost 2.4 percent in the previous two days, sending it toward a six-month low reached July 9.

     The Bloomberg Commodity Index rose 0.2 percent, after falling to a 2002 low on Monday. From oil to copper to sugar, little has escaped the rout in the year’s worst-performing asset class. Gold has fallen 7.1 percent this year amid expectations that the Federal Reserve may raise rates on the back of an improving U.S. economy.

     Bullion for immediate delivery rose 0.4 percent today, while futures slipped 0.3 percent after Monday’s 2.2 percent loss. The metal’s 14-day relative-strength index, a gauge of momentum, fell to 17.3, below the level of 30 that signals to analysts who study charts that prices may rebound. That was the lowest since April 2013, when gold dropped into a bear market.

     An index of gold miners jumped 2.2 percent after plummeting to the lowest since 2001 on Monday. Torex Gold Resources Inc. soared 20 percent and New Gold Inc. rose 3.6 percent.

     Energy producers lost 0.2 percent even as crude climbed from a three-month low. Oil fell below $50 a barrel on Monday for the first time since April on speculation global oversupply will persist.

     West Texas Intermediate increased 0.4 percent today as the dollar slipped for the first time in five days. A weaker dollar bolsters the appeal of commodities priced in the U.S. currency.

     Energy companies have lost 13 percent so far in 2015, the worst performance among 10 industries in the benchmark. Producers of energy and raw materials account for about 30 percent of Canada’s equity benchmark.

US

By Oliver Renick and Callie Bost

     (Bloomberg) —  U.S. stocks declined, with equities sliding the most in two weeks, as quarterly results from IBM Corp. and United Technologies Corp. disappointed investors.

     Apple Inc. declined in late trading after iPhone shipments missed forecasts, and Microsoft Corp. fell following its largest-ever quarterly net loss. International Business Machines Corp. dropped 5.9 percent during regular trading after sales fell for a 13th quarter. United Technologies lost 7 percent after cutting its 2015 profit forecast.

     The Standard & Poor’s 500 Index retreated 0.4 percent to 2,119.21 at 4 p.m. in New York, after earlier coming within three points of an all-time high set in May. The Dow Jones Industrial Average lost 181.12 points, or 1 percent, to 17,919.29, with IBM and United Technologies accounting for 66 percent of the drop. The Nasdaq Composite Index declined 0.2 percent from a record.

     “Right now it’s about earnings, where they’re coming in and what they’re seeing for next quarter, and when the Fed is going to eventually raise rates,” said Thomas Garcia, the head of equity trading at Santa Fe, New Mexico-based Thornburg Investment Management Inc. “If you look at the market valuation, it’s not off the chart, but it is priced for good earnings.”

     The S&P 500 had rallied 4 percent through Monday since a low on July 8, reclaiming almost all of its losses that stemmed from worries over Greece’s debt crisis and China’s market rout. It’s still trailing most developed-market benchmarks this year. The Nasdaq Composite Index closed Monday at its third consecutive all-time high.

     “You have a couple fairly large names that are weak and depressing sentiment,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee. “You’re also brushing up against the top part of the trading range. A lot of people are looking toward Apple’s earnings to pull us out of this.”

     The benchmark index has been stuck in a 90-point range since the beginning of February, including a span of nine weeks where the measure moved less than 1 percent in either direction. Stocks have tested both ends of the range this month, falling as low as 2,046.68 on July 8 and climbing as high as 2,128.28 on Monday.

     The earnings season is picking up pace, with about a quarter of S&P 500 companies releasing results this week. Analysts project a second-quarter profit drop of 5.3 percent for the gauge’s members, less steep than July 10 estimates for a 6.4 percent decline.                      

     Apple sank 6.9 percent as of 4:44 p.m. as quarterly iPhone shipments and the company’s revenue forecast for the current period missed analysts’ projections, raising questions over whether demand for the device has peaked. Apple slid 1 percent in regular trading.

     Microsoft fell 3.5 percent after hours, with results hurt by a $7.5 billion writedown as the purchase of Nokia’s handset unit failed to rescue the company’s mobile business. Excluding the charge and costs related to job cuts, the software giant’s profit beat analysts’ estimates while revenue was in line. Shares rose 0.8 percent during regular trading.

     Investors will also watch economic reports for clues on when the Federal Reserve will raise rates, with housing and jobless-claims data due later this week.

     The Chicago Board Options Exchange Volatility Index sank 0.2 percent Tuesday to 12.22 after Friday reaching its lowest level since December. The gauge, know as the VIX, tumbled 29 percent last week, the biggest such slide since January. Nine of the S&P 500’s main groups declined, led by phone and industrial companies.

     United Technologies dropped the most since Sept. 2011 after cutting its profit forecast amid weak demand, weighing on the S&P 500’s industrials group. Rockwell Collins Inc. slumped 3.6 percent, its biggest drop in 22 months, while General Dynamics Corp. declined for just the second time in 12 sessions, losing 1.8 percent.

     IBM was the largest drag on technology companies in the benchmark index as its shares fell the most since October. The company’s sales to the so-called BRIC countries fell 35 percent in the second quarter. Xerox Corp. slumped 2.9 percent.

     Verizon Communications Inc. lost 2.4 percent, its biggest decline since December, after quarterly revenue missed analysts’ estimates and the company cut its 2015 sales outlook. AT&T Inc. and CenturyLink Inc. fell more than 0.9 percent as phone companies were the worst-performing group in the the benchmark equity index.

     Commodities pared a rebound from yesterday’s 13-year lows, and raw-material companies lost earlier gains. Energy shares were little changed after an early rally, as oil trimmed its first rise in five sessions.

     Consol Energy Inc. and Halliburton Co. rose at least 2.8 percent, offset by Chesapeake Energy Corp.’s 9.5 percent tumble to a nearly 12-year low after it halted its dividend payout. Consol’s biggest shareholder called on the company to spin off or sell its natural gas operations.

     Miners Freeport-McMoRan Inc. and Newmont Mining Corp. climbed more than 3.1 percent after Monday’s selloff. Barrick Gold Corp. gained 1.2 percent after falling 16 percent to a 25- year low Monday.

     Trucking companies rose, with the Dow Jones Transportation Average reaching a one-month high. C.H. Robinson Worldwide Inc. and Con-way Inc. increased more at least 1.7 percent.

     Thoratec Corp. soared 18 percent, the most in more than five years, to a record. People familiar with the situation said the maker of implants that aid failing hearts is in talks to be acquired by St. Jude Medical Inc. St. Jude added 0.2 percent.

     Harley-Davidson Inc. rallied 5 percent, the biggest gain since October, after its quarterly profit beat analysts’ estimates. The motorcycle maker also affirmed its full-year shipment forecasts.

 

Have a wonderful evening everyone.

 

Be magnificent!

Truth has no path, and that is the beauty of truth, it is living.

Krishnamurti

As ever,

 

Carolann

 

If fifty million people say a foolish thing, it is still a foolish thing.

                                                -Anatole France, 1844-1924

 

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

Dear Friends,

Tangents:

On this day in 1969, American astronaut Neil Armstrong became the first person to walk on the moon.

However foolish, however impossible in the end, Disney gives life to the notion that happiness is a creation, something made rather than inherited, a beautiful, necessary lie. –Andrew O’Hagan, The Happiness Project, NY Times, July 19, 2015.

From WHO’S HAPPY NOW?, SHOUTS & MURMURS by Paul Rudnick, The New Yorker, June 1, 2015:

Conservatives are happier than liberals, or so decades of surveys that ask about life satisfaction would suggest….but a new series of studies questions the gap itself, raising the possibility that although conservatives may report greater happiness than liberals, they are no more likely to act in ways that indicate that they really are happier. –The Times.

Young conservatives are made especially happy by:
-Just knowing that, on  a conservative scale, forty=-six is still considered young.
-Turning down offers of marijuana, a free weekend of Showtime, and a trip to New York City, because a young conservative would rather play golf with his dad and maybe learn something.
-Rocking out to Katy Perry while studying for the L.S.A.T., watching Fox News on an iPad, and trying to decide which of these activities is the most fun.

Young liberals are made especially happy by:
-All liberals are young.  Just ask one.

Things that would make a conservative and a liberal equally happy:
-if all of their children got into their first-choice school but didn’t have to room together.
–if no one ever challenged them to find Syria on a map.
-The trailer for the new “Star Wars” movie.

PHOTOS OF THE DAY

US and Cuban national flags hang from a balcony to mark restored diplomatic relations between Cuba and the Unites States, in Old Havana, Cuba, Monday. The new era began with little fanfare when an agreement between the two nations to resume normal ties on July 20 came into force just after midnight Sunday and the diplomatic missions of each country were upgraded from interests sections to embassies. Ramon Espinosa/AP

Queen’s Swan Uppers put swans back in the water during the annual count of the Queen’s swans on the river Thames in Staines-upon-Thames, England, Monday. Frank Augstein/AP

Market Closes for July 20^th, 2015

Market Index	Close	Change
Dow Jones	18100.41	+13.96     +0.08%
S&P 500	2127.83	+1.19   +0.06%
NASDAQ	5218.859	+8.717     +0.17%
TSX	14413.64	-229.20
		-1.57%

International Markets

Market Index	Close	Change
NIKKEI	20650.92	+50.80
		+0.25%
HANG SENG	25404.81	-10.46
		-0.04%
SENSEX	28420.12	-43.19
		-0.15%
FTSE 100	6788.69	+13.61
		+0.20%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.579	1.565
CND. 30 Year Bond	2.261	2.240
U.S.    10 Year Bond	2.3741	2.3469
U.S. 30 Year Bond	3.1032	3.0820

Currencies

BOC Close	Today	Previous
Canadian $	0.76933	0.77083
US $	1.29983	1.29730
Euro Rate 1 Euro=		Inverse
Canadian $	1.40692	0.71077
US $	1.08239	0.92388

Commodities

Gold	Close	Previous
London Gold Fix	1104.60	1132.80
Oil	Close	Previous
WTI Crude Future	50.15	50.89

All there is to investing is picking good stocks at good times and staying with  them as long as they remain good companies. –Warren Buffett

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada’s commodity-heavy stock market fell the most in three weeks, as gold and oil producers sank to levels last seen in the financial crisis amid a rout in basic resources.

     Barrick Gold Corp. and Goldcorp Inc. sank as gold’s lowest settlement in five years pushed miners in the benchmark index to a 14-year low. Pacific Rubiales Energy Corp. and Athabasca Oil Corp. slumped more than 9.1 percent as U.S. crude sank below $50 a barrel for the first time since April.

     The rout in commodities worsened amid signals from the Federal Reserve that the central bank may raise rates this year on the back of an improving U.S. economy. Higher borrowing costs curb the attractiveness of assets such as gold, which doesn’t pay interest or give returns like assets including bonds and equities. Producers of energy and raw materials account for about 30 percent Canada’s equity benchmark.

     The Standard & Poor’s/TSX Composite Index fell 217.29 points, or 1.5 percent, to 14,425.55 at 4 p.m. in Toronto. The benchmark equity gauge has declined 2.1 percent in two days, after rallying 3.2 percent in the previous five sessions.

     Gold miners bore the brunt of selling Monday, as the metal sank to as low as $1,080 an ounce, the lowest since 2010. Barrick sank 16 percent to close at a 25-year low, while Goldcorp tumbled 12 percent to its worst close since 2005.

     An index of gold miners retreated 12 percent to end at the lowest since April 2001, with Yamana Gold Inc. sliding 12 percent and Kinross Gold Corp. plunging 13 percent.

     Raw-materials producers retreated 6.3 percent for a fourth day of losses that now total 10 percent. The Bloomberg Commodity Index dropped 1.4 percent, falling for a fifth day to a 2002 low.

     Energy producers declined 2.7 percent as crude slipped below $50 a barrel for the first time since April before settling at $50.15. The group has lost 13 percent so far in 2015, the worst performance among 10 industries in the S&P/TSX.

US

By Callie Bost

     (Bloomberg) — U.S. stocks were little changed, after the Standard & Poor’s 500 Index briefly climbed above its previous closing record, as better-than-forecast corporate results offset a slump in commodities producers.

     Hasbro Inc. jumped 6.3 percent on better-than-estimated earnings, while Halliburton Co. advanced 1.8 percent after its profit fell less than predicted. Apple Inc. rose 1.9 percent to pace gains in technology shares. Newmont Mining Corp. lost 12 percent, while energy shares declined with oil prices. International Business Machines Corp. fell in late trading after quarterly revenue missed analysts’ estimates.

     The S&P 500 increased 0.1 percent to 2,128.28 at 4 p.m. in New York, to close within three points of an all-time high set two months ago. The Dow Jones Industrial Average climbed 13.96 points, or less than 0.1 percent, to 18,100.41. The Nasdaq Composite Index gained 0.2 percent to extend its record. About 6.3 billion shares changed hands on U.S. exchanges, in line with the three-month average.

     “While I wouldn’t be shocked if we move to new highs, the market may hesitate here,” said Mark Luschini, chief investment strategist in Philadelphia at Janney Capital Management LLC, which oversees about $68 billion. “The earnings that we’ve gotten so far have been better than expected. M&A activity remains alive and well, so that’s a positive.”

     The S&P 500 had lost as much as 4 percent from its May 21 record before rebounding, with most of the gains coming during a 2.4 percent rally last week amid signs that Greece’s standoff with creditors is near a conclusion and a rout in Chinese equities has been contained.                          

     The next 10 percent move in the U.S. equities market will be higher as low analyst earnings forecasts, a rising economy and muted investor sentiment paves the way for further gains, Morgan Stanley chief U.S. equity strategist Adam Parker wrote in a note to clients on Monday. “Why sell the market when numbers are too low, the economy is improving, and you can still romanticize that you are a contrarian bull?” Parker said.

     While benchmark indexes are climbing back to record levels, the S&P 500’s rebound kept it within a historically tight range. The gauge hasn’t closed in 2015 more than 3.5 percent above or below where it started the year, the first time that’s happened, according to data compiled by Bespoke Investment LLC and Bloomberg.

     “There’s quite a while to go before this particular bull market ends,” Omega Advisors Inc.’s Steven Einhorn said Sunday on the television program “Wall Street Week,” predicting the rally since 2009 has at least another two years left.                       

     The vice chairman of the New York-based hedge fund, which oversees more than $9 billion, said economic fundamentals remain strong and the pace of the Fed’s interest-rate tightening is likely to be gradual, boding well for equities.

     Earnings season will draw more attention as the flow of quarterly reports increases this week, with about 25 percent of companies in the S&P 500 scheduled to release results. Analysts have moderated projections for a drop in S&P 500 members’ second-quarter earnings to a 5.3 percent decline from 6.4 percent on July 10.

     IBM lost 4.4 percent after hours as of 4:49 p.m. Quarterly earnings beat analysts’ estimates as reduced administrative and research costs helped offset a decline in its services and software businesses. Revenue fell more than analysts estimated from a year earlier, the 13th straight quarterly decline. Shares had gained 0.4 percent during regular trading Monday.

     Investors will also watch economic reports for clues on when the Federal Reserve will move on interest rates, with housing and jobless-claims data due later this week.                         

     The Chicago Board Options Exchange Volatility Index rose 2.5 percent Monday to 12.25 after Friday reaching its lowest level since December. The gauge, known as the VIX, tumbled 29 percent last week, the biggest such slide since January.

     Technology and phone companies advanced the most among the S&P 500’s main industries, while energy and raw-material companies were the worst-performing groups. Banks in the benchmark rose for the seventh time in eight sessions.

     Apple gained 1.9 percent to a two-month high, rising for a fourth consecutive day to help lift the tech group. Visa Inc. rallied 2.6 percent to a record, and Texas Instruments Inc.climbed 1.5 percent after UBS AG raised the shares to buy from neutral. PayPal Holdings Inc. rose 5.4 percent, and earlier as much as 11 percent, in its market debut after separating from EBay Inc.

     Hasbro rose 6.3 percent to an all-time high. The toymaker’s second-quarter profit and sales beat analysts’ estimates, helped by merchandise tied to the “Jurassic World” summer blockbuster.

     Halliburton added 1.8 percent as results in North America were better than expected due to cost-cutting efforts and higher sales than analysts were forecasting.

     Lockheed Martin Corp. increased 2 percent to an almost five-month high after agreeing to buy United Technologies Corp.’s Sikorsky helicopter unit for $9 billion and said it expects to divest its government information systems division via a sale or spinoff.

     Southwestern Energy Co. and Chesapeake Energy Corp. lost at least 5.9 percent as West Texas Intermediate crude declined for a fourth straight session on the prospect that increasing Iranian shipments will extend the global supply glut. Energy shares capped their worst two-day drop since January.

     Newmont led declines in raw-materials, losing the most since Oct. 2008 as gold prices fell to the lowest since 2010. Barrick Gold Corp. tumbled 16 percent to a 25-year low, and Freeport-McMoRan Inc. slid 5.2 percent. The Bloomberg Commodity Index was down 1.4 percent, closing at a 13-year low.

     Raw materials are losing favor with investors as the dollar gains amid signals from Fed Chair Janet Yellen that the central bank may raise rates this year on the back of an improving U.S.

economy. Higher borrowing costs curb the attractiveness of commodities such as gold, which doesn’t pay interest or give returns like assets including bonds and equities.

     “We’ve seen a resumption of a rally in the dollar and if you do the math, that’s bad for commodity prices,” said Peter Sorrentino, a Cincinnati-based fund manager at Huntington Asset Advisors Inc., which oversees $1.8 billion.

 

Have  a wonderful evening everyone.

 

Be magnificent!

It is not a question of belief.

Stop believing in that which is;

this is what is taught in jnana yoga.

Believe in no other,

stop believing in that which is;

this is the first stage.  Dare to be rational.

Dare to follow reason where it may take you.

Swami
Vivekananda

As ever,

 

Carolann

 

Marriage is the greatest earthly happiness when founded on complete sympathy.

                                                                 -Benjamin Disraeli, 1804-1887

 

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

Dear Friends,

Tangents:

On this day in 1955, Disneyland opened in Anaheim, California.

Henn-na Hotel, the world’s first hotel entirely staffed by robots, opens in Nagasaki, Japan today!

An assortment of bleeping, flashing and perma-smiling robots greet guests at reception

PHOTOS OF THE DAY

Groundstaff remove water from the 18th green after torrential rain forced play to be suspended during the second round of the British Open golf championship on the Old Course in St. Andrews, Scotland, Friday. Eddie Keogh/Reuters

Kashmiri Muslims walk over a bridge, inspecting the water level near Kullan, northeast of Srinagar, Kashmir, on Friday. Fatal flash floods and cloudbursts in Indian Kashmir caused severe damage on Friday. Dar Yasin/AP

Market Closes for July 17^th, 2015

Market Index	Close	Change
Dow Jones	18086.45	-33.80     -0.19%
S&P 500	2126.61	+2.32     +0.11%
NASDAQ	5210.145	+46.961     +0.91%
TSX	14636.56	-94.52
		-0.64%

International Markets

Market Index	Close	Change
NIKKEI	20650.92	+50.80
		+0.25%
HANG SENG	25415.27	+252.49
		+1.00%
SENSEX	28463.31	+17.19
		+0.06%
FTSE 100	6775.08	-21.37
		-0.31%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.565	1.580
CND. 30 Year Bond	2.240	2.272
U.S.    10 Year Bond	2.3469	2.3540
U.S. 30 Year Bond	3.0820	3.1146

Currencies

BOC Close	Today	Previous
Canadian $	0.77083	0.77172
US $	1.29730	1.29580
Euro Rate 1 Euro=		Inverse
Canadian $	1.40491	0.71179
US $	1.08295	0.92340

Commodities

Gold	Close	Previous
London Gold Fix	1132.80	1144.40
Oil	Close	Previous
WTI Crude Future	50.89	50.91

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, halting the biggest rally since February, as raw-materials producers sank with commodities prices amid a slump in the nation’s currency to a six-year low.

     Barrick Gold Corp., the world’s largest gold producer, plunged to a 24-year low to lead mining companies lower. Raw- materials companies tumbled to a seven-month low. Pacific Rubiales Energy Corp. and Bankers Petroleum Ltd. lost at least 9.4 percent, the most among oil producers as the industry traded near a six-year low.

     The Standard & Poor’s/TSX Composite Index fell 88.24 points, or 0.6 percent, to 14,642.84 at 4 p.m. in Toronto. The benchmark equity gauge had gained 3.2 percent in the past five days.

     “For a lot of the generalists that might’ve gone in, they’re just reversing their trade and thinking now is the time to get out,” said John Kim, a fund manager at Aston Hill Financial in Toronto. His firm manages about C$4 billion. “It’s hard to say what happens next. A lot of it is predicated on sentiment for where commodity prices will be six months down the road.”

     Goldcorp Inc. tumbled 6.1 percent to the lowest close since October 2008 and Barrick Gold sank 5.2 percent to a May 1991 low, as raw-materials producers tumbled 2.8 percent to the lowest level since November. Energy producers lost 1.3 percent. Commodities producers account for about 30 percent of the S&P/TSX.

     Gold prices tumbled 1 percent in New York, the lowest close since April 2010, as a commodity meltdown deepened amid an expanding glut in supplies of assets from gold to oil and wheat.

     Four of 10 industries in the S&P/TSX retreated on trading volume 1.5 percent above the 30-day average today. Grocery stores and industrials shares advanced.

     The Canadian dollar weakened to a six-year low amid speculation the nation’s central bank will cut interest rates again to buttress a weakening economy. The price of crude oil, the nation’s top export, is down 51 percent in the past year.

     Energy stocks have slumped 11 percent this year, the worst- performing industry in the S&P/TSX.

     Suncor Energy Inc. lost 1.9 percent and Encana Corp. fell 2.7 percent. Brent oil capped the longest run of weekly declines since January and West Texas Intermediate crude dropped 3.5 percent for the week.

     The threat of a contracting economy prompted Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year, to 0.5 percent from 0.75 percent on July 15.

US

By Oliver Renick and Annelise Alexander

     (Bloomberg) — It was back to basics for the U.S. stock market, with investors celebrating by giving the Nasdaq Composite Index its best week since October.

     Volatility tumbled as a Greek bailout agreement eased fears that the nation would exit from the euro and a rout in Chinese equities leveled off. As investors turned their attention to earnings, results from Google Inc. and Netflix Inc. helped send the Dow Jones Internet Composite Index soaring the most in 3 1/2 years.

     “It’s the first weekend we’re going into in a while not worrying about some political event overseas,” Anwiti Bahuguna, senior portfolio manager at Columbia Threadneedle Investments, said by phone. “People can go back to focusing on what is very critical for us, which is earnings for U.S. companies and economic data.”

     The Nasdaq Composite jumped 4.3 percent to a record, while the Nasdaq 100 Index surged 5.5 percent to a 15-year high. The Standard & Poor’s 500 Index gained 2.4 percent for its best week since March, while the Dow Jones Industrial Average added 1.8 percent to top 18,000 points.

     As the S&P 500 rallied to within five points of a record, the Chicago Board Options Exchange Volatility Index sank 29 percent, the worst week for the gauge known as the VIX since January 2013.

     The equity gains halted a three-week slump that saw the S&P 500 decline 1.6 percent amid uncertainty over whether Greece’s crisis would spread to other European nations and if China’s equities rout would hurt global growth at the same time the Federal Reserve is weighing higher interest rates.

     While benchmark indexes are climbing back to record levels, the S&P 500’s rebound kept it within a historically tight range. The gauge hasn’t closed in 2015 more than 3.5 percent above or below where it started the year, the first time that’s happened, according to data compiled by Bespoke Investment LLC and Bloomberg. It ended Friday higher by 3.3 percent for the year.

     Overseas, the Stoxx Europe 600 Index advanced 4.3 percent for its best week since January. The Shanghai Composite Index gained for a second week, as part of a 9 percent rebound from July 8 after tumbling 32 percent in a month.

     Technology and financial shares led gains in the U.S., as investors turned to earnings from some of the industries’ largest companies. Analysts project that profit for members of the S&P 500 dropped 5.3 percent in the second quarter, an improvement from a 6.6 percent decline estimated a month ago.

     The Dow Jones Internet Index surged 7.5 percent in the week, led by Google’s 26 percent rally to an all-time high after the search-engine giant reported profit that topped forecasts. Google added $65 billion to its market capitalization Friday for the biggest one-day gain in value ever for a U.S. company, according to data compiled by S&P Dow Jones Indices.

     “The market is really looking for some meat to bite into, and that meat is the earnings,” said Karyn Cavanaugh, a senior market strategist at Voya Investment Management LLC. Voya oversees $215 billion. “The earnings are doing well, the economy is doing better and it takes the focus off the drama going on in Greece and in China.”

     Netflix jumped 18 percent and closed Thursday at a record after the company said growth in international audiences boosted subscriptions to its Internet TV service. The stock has been the best performer in the S&P this year. Facebook Inc., which is slated to report results July 29, added 8 percent to an all-time high.

     Cost reductions boosted results at the nation’s largest lenders, as bank shares in the S&P 500 delivered their best week since February. JPMorgan Chase & Co. added 3.2 percent after tighter expenses helped profit top estimates.

     Bank of America Corp. climbed 8.4 percent to the highest since December as cuts led earnings to more than double, while Citigroup Inc. added 7.7 percent as its chief executive officer tightened the belt.

     Deals also boosted stocks. EBay Inc. rallied 6.3 percent, the most since October, to end at a record after agreeing to sell its enterprise unit for $925 million. Micron Technology Inc. posted its biggest gain since November 2011 after the investment arm of one of China’s top universities announced plans to offer $23 billion for the chipmaker, according to people familiar with the situation.

     Celgene Corp. jumped 13 percent after it agreed to acquire Receptos Inc. for $7.2 billion, contributing to a 6.8 percent rally in the Nasdaq Biotechnology Index that left the gauge at an all-time high.

     Energy shares declined the most among the S&P’s 10 main groups as oil prices retreated. Consol Energy Inc. sank 12 percent in a 10th week of losses, while Transocean Ltd. tumbled 7.8 percent to a 20-year low.

     Earnings have not diverted attention entirely from the timing of the Fed’s next interest-rate move as investors continue to weigh data to gauge the economy’s strength. Reports in the week showed new-home construction climbed in June to the second-highest level since November 2007, while the cost of living rose for the fifth consecutive month.

     Chair Janet Yellen told lawmakers in her semi-annual testimony to Congress that the central bank remains on track to boost borrowing costs this year, while emphasizing that the timing of the first rise is less important than the subsequent path of increases, which she said would be gradual.

 

Have  a wonderful weekend everyone.

 

Be magnificent!

We gain our freedom when we realize our most true nature.

The man who is an artist gains his artistic freedom when he discovers the true ideal of art.

Rabindranath Tagore

As ever,

 

Carolann

 

Manners require time, and nothing is more vulgar than haste.

                                  -Ralph Waldo Emerson, 1803-1882

 

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

Dear Friends,

Tangents:

More from our Croatia Travel Director – fitting for the season!

The Commandments of Travel

Thou shalt not expect to find things precisely as they are at home, for thou hast left home to find things different.

Thou shalt not take anything too seriously, for a carefree mind is the basis for a great vacation.

Thou shalt not worry.  The person who worries hath little joy and few things are fatal.

Thou shalt not judge all the people of a country by one person with whom thou has a problem.

Thou shalt in Rome, do somewhat as the Romans do.

Thou shalt carry thy passport (or copy) at all times, for a traveler without a passport is one without a country.

Thou shalt learn to say “Thank You” in any language.  Verily, it si worthe more than gold.

Thou shalt acquaint thyself with any currency and thou shalt not be cheated.

Thou art welcome in every land.  Treat thy hosts with respect and thou shalt be an honored guest.

Thou shalt always be on time.

PHOTOS OF THE DAY

Marylebone Cricket Club members wait in line for the gates to open before the second Ashes Test cricket series match at Lord’s Cricket Ground in London, Thursday. Philip Brown/Reuters

Swiss dancers give a performance titled ‘Let’s Move Together’ at the Gymnaestrada’s Midnight Sun Special at the Olympic stadium in Helsinki, Wednesday. Mikko Stig/Reuters

Market Closes for July 16^th, 2015

Market Index	Close	Change
Dow Jones	18120.25	+70.08     +0.39%
S&P 500	2124.28	+16.88     +0.80%
NASDAQ	5163.184	+64.242   +1.26%
TSX	14727.56	+65.28
		+0.45%

International Markets

Market Index	Close	Change
NIKKEI	20600.12	+136.79
		+0.67%
HANG SENG	25162.78	+107.02
		+0.43%
SENSEX	28446.12	+247.83
		+0.88%
FTSE 100	6796.45	+42.70
		+0.63%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.580	1.592
CND. 30 Year Bond	2.272	2.280
U.S.    10 Year Bond	2.3540	2.3557
U.S. 30 Year Bond	3.1146	3.1409

Currencies

BOC Close	Today	Previous
Canadian $	0.77172	0.77409
US $	1.29580	1.29184
Euro Rate 1 Euro=		Inverse
Canadian $	1.40953	0.70946
US $	1.08776	0.91932

Commodities

Gold	Close	Previous
London Gold Fix	1144.40	1147.40
Oil	Close	Previous
WTI Crude Future	50.91	51.41

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve.  I would like to say to Milton [Friedman]: Regarding the Great Depression, you’re right; we did it.  We’re very sorry.  But thanks to you, we won’t do it again. –Ben Bernanke, Fed Chairman, 2006-2014

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, extending the biggest rally since February to a fifth day, as lenders advanced after the central bank lowered borrowing rates.

     Magna International Inc. dropped 3.5 percent after agreeing to acquire German manufacturer Getrag. Toronto-Dominion Bank and Bank of Nova Scotia added more than 1.1 percent after the Bank of Canada yesterday cut its benchmark lending rate in the face of a slumping economy. Sleep Country Canada Holdings Inc. slumped 5 percent in its trading debut.

     The Standard & Poor’s/TSX Composite Index rose 68.80 points, or 0.5 percent, to 14,731.08 at 4 p.m. in Toronto. The benchmark equity gauge has gained 3.2 percent in five days, the most since February. The rally has pushed the gauge to a 0.7 percent gain this year.

     FirstService Corp. surged 6.7 percent as financial services companies increased 0.8 percent as a group. Eight of 10 industries in the S&P/TSX advanced on trading volume 6.2 percent higher than the 30-day average today.

     The threat of a contracting economy prompted Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year, to 0.5 percent from 0.75 percent yesterday.

     The nation’s largest lenders, including Scotiabank, Royal Bank of Canada and Toronto-Dominion, have lowered their prime rates in response.

     Bombardier Inc. soared 3.7 percent, rebounding from a 1993 low, after the aircraft maker hired Pratt & Whitney Canada executive John Di Bert as its chief financial officer. Industrials climbed 0.4 percent as a group.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks rose, with the Nasdaq Composite Index reaching a record, after Greek lawmakers passed a bailout agreement while companies including Netflix Inc. and Citigroup Inc. rallied on earnings.

     Netflix jumped 18 percent after subscribers surged in the second quarter, beating projections. EBay Inc. climbed 3.4 percent after quarterly sales exceeded estimates and it agreed to sell its enterprise unit for $925 million. Citigroup added 3.8 percent as cost cuts helped the bank’s quarterly profit beat analysts’ estimates. Google Inc. rallied in late trading after its earnings were better than estimated.

     The Nasdaq Composite increased 1.3 percent to 5,163.18 at 4 p.m. in New York, topping its closing record set on June 23. The Standard & Poor’s 500 Index rose 0.8 percent to 2,124.29, 0.3 percent below its record. The Dow Jones Industrial Average gained 70.08 points, or 0.4 percent, to 18,120.25. About 6.2 billion shares traded hands on U.S. exchanges, 3.6 percent below the three-month average.

     “It looks like the equity market likes the Greek settlement,” said Ron Anari, the Jersey City, New Jersey-based senior vice president of trading at ICAP Plc. “At this stage of the game the Federal Reserve is in the driver’s seat, we’re going to see a hike sometime in September, and the equity market understands that. It’s expecting more positive economic news.”

     Greek lawmakers passed reform measures demanded by creditors in exchange for negotiating a third bailout package. Following the vote, European Central Bank President Mario Draghi said today that the central bank raised the level of emergency aid to Greek lenders.                          

     The S&P 500 is on pace for its biggest weekly gain in four months, as it closes in on its May 21 record. The gauge fell as much as 4 percent from that level amid concern the Greek debt crisis and China’s equities rout would hurt global growth as the Federal Reserve considers raising interest rates this year.

     Fed Chair Janet Yellen appeared Thursday before the Senate Banking Committee in Washington, continuing her semi-annual testimony on monetary policy. She told lawmakers that raising rates too late holds risks, along with tightening too quickly.

     Yesterday Yellen signaled the Fed is on track to raise rates this year, while emphasizing that the timing of the first rate rise is less important than the subsequent path of increases, which she said would be gradual.

     Policy makers are watching for further improvement in the labor market. A report today showed filings for U.S. unemployment benefits fell last week for the first time in a month, heading back toward the lowest levels in more than a decade.

     Separate data showed confidence among homebuilders held in July at the highest level since November 2005, indicating the residential real estate market may be picking up speed. Meanwhile, a gauge on manufacturing in the Philadelphia area fell more than estimated by economists surveyed by Bloomberg.

     Earnings season is also drawing more focus as investors sift for clues on the health of the world’s largest economy. S&P 500 companies reporting quarterly results today. Analysts project earnings for members of the S&P 500 dropped 6.4 percent in the second quarter.

     “We’re going to start getting into the thick of earnings this week and with stocks like Netflix responding today, Microsoft and Intel up, you get the sense that betting against the market is a foolish bet,” said Rick Fier, director of equity trading at Conifer Securities LLC in New York.

     With its Thursday 18 percent post-earnings climb, Netflix extended its all-time high, and was the biggest driver of gains in the Nasdaq Composite and S&P 500. The shares are up 137 percent this year, the most in the benchmark index.

     EBay rallied the most since April to a record, helping to lead the technology group to a fifth straight session of gains. The online auction site agreed to sell its enterprise unit to a private-equity group led by Permira and Sterling Partners for $925 million. The unit provides warehousing, delivery and customer support to Web merchants.

     Microsoft Corp. and International Business Machines Corp. each rose at least 1.4 percent, leading the Dow, with both stocks headed toward their strongest weekly gains in three months.

     Google increased 9.9 percent as of 5:01 p.m. as the search engine giant’s second-quarter profit topped analysts’ estimates amid slower spending. Google soared 3.1 percent in regular trading to the highest since September, with the gain almost doubling in the final 15 minutes of trading before the earnings release.

     The Chicago Board Options Exchange Volatility Index fell 8.5 percent Thursday to 12.11, marking its biggest five-day decline ever.

     Nine of the S&P 500’s 10 main groups gained, with utility, phone and technology companies rising the most. Banks in the benchmark extended a rally to a sixth day, the longest winning streak since Dec. 2013. Citigroup rose to a more than six-year high after its quarterly results. M&T Bank Corp. climbed 2.2 percent to a record after its second-quarter profit exceeded estimates.

     Charles Schwab Corp. advanced 3.3 percent to its highest since Nov. 2000 after reporting second-quarter profit in line with analysts’ estimates, while revenue beat forecasts. E*Trade Financial Corp. surged 2.9 percent.

     Philip Morris International Inc. added 3.2 percent, the most in three months, to pace a rise in consumer staples. The world’s largest publicly traded tobacco company posted quarterly profit that topped estimates. Altria Group Inc. gained 3.3 percent to a four-month high, and Reynolds American Inc. rose 1.8 percent to a record.                          

     Automakers and parts suppliers retreated after Barclays Plc cut them to negative from neutral as China car sales continue to disappoint. General Motors Co. fell 2.6 percent to its lowest since October, while parts makers Delphi Automotive Plc and BorgWarner Inc. dropped at least 3.7 percent.

     Sherwin-Williams Co. fell 7.4 percent, the most in two years. The paint maker cut its full-year earnings forecast, citing the effects of a stronger dollar. Rival PPG Industries Inc. slid 4.4 percent after also citing currency headwinds in its earnings report.

     Garmin Ltd. lost 7.1 percent after the navigation device company’s preliminary second-quarter and full-year profit views were below analysts’ estimates. Shares fell to the lowest since Sept. 2013.

 

Have a wonderful evening everyone.

 

Be magnificent!
 

Do not believe a thing simply because it has been said.

Do not put your faith in traditions only because they have been honored by many generations.

Do not believe a thing because the general opinion believes it to be true or because it has been said repeatedly.

Do not believe a thing because of the single witness of one of the sages of antiquity.

Do not believe a thing because the probabilities are in its favor,

or because you are in the habit of believing it to be true.

Do not believe in that which comes to your imagination,

thinking that it must be the revelation of a superior Being.

Believe nothing that binds you to the sole authority of your masters or priests.

That which you have tried yourself, which you have experienced, which you have recognized as true,

and which will be beneficial to you and to others;

believe that, and shape your conduct to it.

Buddha

As ever,

 

Carolann

 

I know of nothing sublime which is not some modification of power.

                                                    -Edmund Burke, 1729-1797

 

 

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

Dear Friends,

Tangents:

So many of us travelling this time of year for summer vacation, summer holidays.  I opened a keepsake given to us by the Travel Director on our recent trip to Croatia & Slovenia.  It is a wise message to pass on:

LET’S BE CONSIDERATE!
PROTECT OUR WORLD!

 
USE NOTHING BUT    “ENERGY” !

 
WASTE NOTHING BUT   “TIME” !

 
TAKE NOTHING BUT   “PHOTOS’!

 
LEAVE NOTHING BUT   “FOOT PRINTS”!

 
THE MOST PRECIOUS GIFT WE CAN GIVE TO FUTURE GENERATIONS!

 
BIRTHDAY: Rembrandt, July 15, 1606

Rembrandt was born in Leiden, the Netherlands, on July 15, 1606 – his full name was Rembrandt Harmenszoon van Rijn.  He was the son of a miller.  Despite the fact that he came from modest means, he was able to study art and , by age 22, took his first pupils.  He married Saskia van Ulyenburgh, the cousin of a successful art dealer, in 1634.

Rembrandt’s family life was marked by misfortune.  Between 1635 and 1641 Saskia gave birth to four children, but only the last, Titus, survived.  Saskia died in 1642, at the age of 30.  Hendrickje Stoffels, who became Rembrandt’s housekeeper in 1649, eventually became his wife and was the model for many of his pictures.  Despite Rembrandt’s success as an artist, teacher, and art dealer, his flamboyant living forced him to declare bankruptcy in 1656.  His beloved Hendrickje died in 1663, and his son Titus, in 1668 at only 27 years of age.  Eleven months later, on October4, 1669, Rembrandt died in Amsterdam.

If any of you are travelling to Amsterdam this summer, make sure to stop by Rembrandt’s studio which was made into a very interesting museum.  It’s a highlight in a city of many treasures, and I recommend it to gain an interesting perspective on this giant of a man and the art world.

PHOTOS OF THE DAY

Hindu priests hold traditional oil lamps as they perform evening prayers called ‘Aarti’ on the banks of the river Godavari during the Maha Pushkaralu, a Hindu festival, at Rajahmundry in Andhra Pradesh, India, Wednesday. The religious festival is held once every 144 years. R Narendra/Reuters

Revelers hold up red scarves and candles during the closing ceremony of the San Fermin festival in Pamplona, northern Spain, early Wednesday morning. Thousands of people gathered in front of the city’s town hall to sing the traditional farewell song ‘Pobre de mi’ (‘poor me’). The song is sung by revelers to show their sadness for the end of the festival. Susana Vera/Reuters

Market Closes for July 15^th, 2015

Market Index	Close	Change
Dow Jones	18050.17	-3.41     -0.02%
S&P 500	2107.40	-1.55     -0.07%
NASDAQ	5098.941	-5.949     -0.12%
TSX	14662.28	+62.88
		+0.43%

International Markets

Market Index	Close	Change
NIKKEI	20463.33	+78.00
		+0.38%
HANG SENG	25055.76	-65.15
		-0.26%
SENSEX	28198.29	+265.39
		+0.95%
FTSE 100	6753.75	—
		—

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.592	1.647
CND. 30 Year Bond	2.280	2.320
U.S.    10 Year Bond	2.3557	2.3974
U.S. 30 Year Bond	3.1409	3.1916

Currencies

BOC Close	Today	Previous
Canadian $	0.77409	0.78526
US $	1.29184	1.27346
Euro Rate 1 Euro=		Inverse
Canadian $	1.41428	0.70707
US $	1.09475	0.91345

Commodities

Gold	Close	Previous
London Gold Fix	1147.40	1157.40
Oil	Close	Previous
WTI Crude Future	51.41	53.04

If you torture the data long enough, it will confess to anything.
                    -Darrell Huff, 1913-2001 (How to Lie with Statistics, 1954).

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a fourth day, extending the biggest rally since February, after the Bank of Canada cut its benchmark interest rate for a second time this year due to the impact of slumping oil on the economy.

     Canadian National Railway Co. and Canadian Pacific Railway Ltd. increased more than 1.4 percent to lead industrials stocks higher. Corus Entertainment Inc. tumbled 9 percent after reporting third-quarter earnings and revenue short of analysts’ estimates.

     The Standard & Poor’s/TSX Composite Index rose 62.88 points, or 0.4 percent, to 14,662.28 at 4 p.m. in Toronto. The benchmark equity gauge has gained 2.7 percent in four days, the most since February. The rally has pushed the gauge to a 0.2 percent gain this year.

     “This is going to give a nice boost to stocks,” said Geoffrey Pazzanese, a global equity fund manager at Federated Investors Inc. on the phone from New York. His firm manages $355.8 billion in assets, and exited Canada completely in February. “It will help the domestic economy, the currency might help operationally if you’re selling in U.S. dollars.”

     Canadian Pacific Railway rose 1.4 percent and Canadian National Railway added 2.6 percent as industrials stocks rallied 1.2 percent as a group. Eight of 10 industries increased on trading volume in line with the 30-day average today.

     Alimentation Couche-Tard Inc. climbed 4 percent, extending a record, to lead a 2 percent increase in consumer-staples stocks.

     The threat of a contracting economy prompted Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year, to 0.5 percent from 0.75 percent.

     The Canadian economy probably “contracted modestly” in the first half, policy makers said, without calling it a recession, which is typically defined as two straight quarters of negative growth.

     Royal Bank of Canada rose 0.5 percent while Canadian Western Bank dropped 3.3 percent. Toronto-Dominion Bank, the second-largest lender, rose 1.1 percent. The lender cut its prime lending rate 10 basis points to 2.75 percent in response to the central bank’s decision.

US

By Jeremy Herron

     (Bloomberg) — U.S. stocks snapped the longest rally since January as Greek lawmakers debated a new bailout package amid protests outside parliament. Treasuries rose as the Federal Reserve indicated interest rates won’t be increased rapidly this year, and Canada’s dollar led commodity currencies lower.

     The Standard & Poor’s 500 Index was down 0.1 percent by 4 p.m. in New York after trading little changed for most of Wednesday following a 3 percent rally the past four days. Yields on 10-year Treasury notes fell five basis points to 2.35 percent. The loonie tumbled to its weakest level since 2009 after the Bank of Canada cut benchmark rates, fueling a selloff in currencies from New Zealand to South Africa. Crude oil slid.

     Riot police fired tear gas to disperse crowds gathered across the road from the Greek parliament, where lawmakers are weighing the austerity measures demanded in return for fresh aid. Fed Chair Janet Yellen reiterated in her congressional testimony that the bank remains on track to raise rates this year, though the pace of any increases will be gradual.

     “A rate hike has been baked into prices for some time already,” Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird & Co., which oversees $110 billion, said by phone. “She has to consider what’s going on with the turmoil in Europe, and deflationary pressures are still formidable. Going forward, earnings will be important.”

     The Bloomberg Commodity Index lost 0.9 percent Wednesday, as a strengthening dollar damped demand for assets from precious metals to oil. West Texas Intermediate crude sank 3.1 percent to $51.41 a barrel after an increase in oil inventories at the Cushing, Oklahoma hub.                     
     
     The loonie slid 1.5 percent after Canada cut rates for the second time this year, a move of support for the economy which is laboring under the retreat in commodities. The Aussie slumped 1 percent, while the South African rand was down 0.8 percent. A drop in milk powder prices at a fortnightly dairy auction hit the kiwi, with the currency extending losses at its weakest level since 2010 before inflation data Thursday.

     The S&P 500 had been rallying along with global stocks after Greece’s prime minister agreed to the bailout deal and China appeared to stabilize its stock-market rout. The Shanghai Composite Index fell 3 percent Wednesday in a second day of losses, reinvigorating concerns after better-than-expected economic growth data failed to boost investor confidence.

     U.S. equities traded moderately higher earlier in the session as results from Bank of America Corp. and U.S. Bancorp boosted financial shares. Celgene Corp. jumped 7 percent after raising its profit forecast and agreeing to acquire Receptos Inc. for $7.2 billion. Energy shares led declines amid oil’s drop.

     Netflix Inc. surged about 10 percent in extended trading after the company said growth in international audiences boosted subscriptions to its Internet TV service. Netflix has been the best performer in the S&P 500 this year. Intel Corp. added 3.2 percent as the biggest maker of semiconductors predicted third- quarter sales that may exceed analysts’ predictions.

     The S&P 500 turned negative in afternoon trading after footage of the Greek protests emerged. The demonstrations show the challenge faced by Prime Minister Alexis Tsipras in convincing a country whose economy has shrunk by a quarter in the last five years to accept further spending cuts.

     “If you take how far we’ve come in the last three days, throw a riot on TV and toss in the fact that it appears that Greek parliament is still debating this package — that’s enough to hit the market late in the afternoon on a quiet day,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee.

     Equities investors largely ignored Yellen’s testimony, as it tracked closely with comments she made July 10, while bond traders jumped on to her reiteration that rate increases this year will be gradual.

     Fed funds futures showed a 37 percent chance the central bank will boost its benchmark rate in September, up from 31 percent on Tuesday. Futures are pricing in 70 percent chance of a hike by December, up from 66 percent, according to data compiled by Bloomberg.

     “The market in the last two months has begun to embrace the view that the pace will matter more than the liftoff,” said George Goncalves, the head of interest-rate strategy at Nomura Holdings Inc., one of the 22 primary dealers that trade directly with the Fed. “Earlier in the year, the market wasn’t buying into the concept.”                        

     The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, climbed 0.5 percent, with the dollar adding 0.5 percent to $1.0950 per euro.

     Stocks in Europe advanced for a sixth day as gains in mining shares pushed the Stoxx Europe 600 Index to its longest winning streak since February.

     Gold futures capped a fifth straight decline, with contracts for August delivery down 0.5 percent to $1,147.40 an ounce. The metal has lost 3.1 percent this year and is trading near a three-month low. Zinc climbed to a one-month high amid signs of tighter global supplies and faster-than-expected economic growth in China, the world’s biggest user.

 

Have a wonderful evening everyone.

 

Be magnificent!

Such awareness is like living with a snake in a room;

you watch its every movement, you are very, very sensitive to the slightest sound it makes.

Such a state of attention is total energy;

in such awareness the totality of yourself is revealed in an instant.

Krishnamurti

As ever,

 

Carolann

 

Traveling makes a man wiser, but less happy.

                    -Thomas Jefferson1743-1826

 

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

Dear Friends,

Tangents: 

Found this in The New Yorker today….thought it might interest you!

FIT BODIES, FIT BRAINS

It seems everyone’s got a favorite workout these days, but this fitness regime isn’t about building six-pack abs or killer quads. It’s about your brain.

Fit Brains is the free, online, mobile-friendly brain training app from Rosetta Stone, the people who redefined language learning. The idea is to game your way to greater strength in cognitive areas like memory, logic, speed, focus, and of course, language.

In practice, Fit Brains games are fun, challenging, and a little addictive—the more you advance, the further you want to go. Competitive types (you know who you are) will appreciate the ability to compare your performance with other Fit Brains users in your age group and gender. With more than 60 games to choose from so far, you and your brain will never run short of new challenges.

So, does it really work? The science is solid. Fit Brains has been developed under the supervision of Dr. Paul Nussbaum, a neuropsychologist and leader in the field of Brain Health. And Fit Brains users report improved memory, enhanced focus, and a whole lot of fun thanks to the program.

Fit Brains is online and mobile, so you can treat your brain to a good workout practically anywhere (while on the treadmill at the gym, even)—and on whatever device works for you.

Of course, if you’re a regular reader, your brain may be fitter than most already. It’s easy enough to find out—just go to FitBrains.com to start playing.

Today is Bastille Day in France.

PHOTOS OF THE DAY

Alphajets from the French Air Force Patrouille de France fly over the pyramid of the Louvre in the formation of a Croix de Lorraine, releasing trails of red, white, and blue during the traditional Bastille Day military parade in Paris, Tuesday. Bastille Day, also known as the 14th of July, is the national holiday of France, commemorating the beginning of the revolution that overthrew the king Louis XVI in 1789. Gonzalo Fuentes/Reuters

Solar powered lights are pictured along Hoernli Ridge on the Matterhorn in Zermatt, Switzerland, Tuesday. Zermatt celebrates the first ascent of the Matterhorn, made along the Hoernli Ridge by Briton Edward Whymper on July 14, 1865, with six other roped team members. All mountaineering activities will be halted on July 14 on the Swiss and Italian side of the Alpine summit in remembrance of the more than 500 people who have perished attempting to reach the top. Denis Balibouse/Reuters

Market Closes for July 14^th, 2015

Market Index	Close	Change
Dow Jones	18053.58	+75.90     +0.42%
S&P 500	2108.95	+9.35     +0.45%
NASDAQ	5104.891	+33.379     +0.66%
TSX	14599.40	+66.18
		+0.46%

International Markets

Market Index	Close	Change
NIKKEI	20385.33	+295.56
		+1.47%
HANG SENG	25120.91	-103.10
		-0.41%
SENSEX	27932.90	-28.29
		-0.10%
FTSE 100	6753.75	+15.80
		+0.23%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.647	1.680
CND. 30 Year Bond	2.320	2.342
U.S.    10 Year Bond	2.3974	2.4373
U.S. 30 Year Bond	3.1916	3.2159

Currencies

BOC Close	Today	Previous
Canadian $	0.78526	0.78534
US $	1.27346	1.27334
Euro Rate 1 Euro=		Inverse
Canadian $	1.40177	0.71338
US $	1.10075	0.90847

Commodities

Gold	Close	Previous
London Gold Fix	1157.40	1154.00
Oil	Close	Previous
WTI Crude Future	53.04	52.20

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks extended the biggest rally since February, as energy shares rebounded from the worst week in six months and materials producers jumped before the Bank of Canada meets to determine interest-rate policy.

     Bankers Petroleum Ltd. and Penn West Petroleum Ltd. surged at least 8.4 percent to pace an advance in oil companies. Potash Corp. of Saskatchewan Inc. added 1.2 percent for a third straight day of gains. Fairfax Financial Holdings Ltd. added 2.8 percent after one of its units offered to buy a position in an Indian brokerage for $255 million.

     Even with the recent rebound, energy producers are the worst performers this year among 10 groups in the benchmark for Canadian equities, as a rout in oil prices has weakened domestic producers. The slide is spreading to a manufacturing sector already struggling to capitalize on a rebound in U.S. growth and a weaker currency, adding to concerns Canada may have slipped into recession as the central bank meets Wednesday.

     The Standard & Poor’s/TSX Composite Index rose 66.18 points, or 0.5 percent, to 14,599.40 at 4 p.m. in Toronto. The benchmark equity gauge has gained 2.3 percent in the past three days, the most since February. The rally has trimmed its decline in 2015 to 0.2 percent, one of the worst performances among 24 developed markets tracked by Bloomberg.

     The threat of a contracting economy may prompt Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year. Sixteen of the 29 economists surveyed by Bloomberg said the benchmark rate will be reduced by a quarter point to 0.5 percent.

     The BOC will announce the rate decision at 10 a.m. in Ottawa.                     

     The recent run in Canada’s stock market comes as Toronto- Dominion Bank, Bank of America Merrill Lynch, BNP Paribas SA and Citigroup Inc. all have said Canada probably fell into recession in the first half of 2015.

     All 10 industries in the S&P/TSX rose on trading volume in line with the 30-day average today.

     Energy shares jumped 1.2 percent for a second day of gains. The group plunged 3.9 percent last week, the most since January. Suncor Energy Inc. jumped 1.9 percent and Encana Corp. rose 4.3 percent.

     West Texas Intermediate crude for August delivery added 1.6 percent to $53.04 a barrel in New York, erasing an earlier loss. Iran agreed to curb its nuclear program in return for the removal of sanctions on its exports including crude in a historic accord with world powers. Restrictions on Iran will remain in place at least until United Nations monitors report on the country’s compliance with the deal in December.

US

By Oliver Renick and Annelise Alexander

     (Bloomberg) — U.S. stocks posted their first four-day winning streak since January, as semiconductor and biotechnology shares rallied while weaker-than-expected retail sales spurred speculation on timing for higher interest rates.

     Micron Technology Inc. jumped 11 percent, leading chipmakers higher, amid talk of a buyout. The Nasdaq Biotechnology Index increased 2.3 percent to a record. Apache Corp. and Chesapeake Energy Corp. rose more than 2.1 percent as oil gained. JPMorgan Chase & Co. advanced 1.4 percent after its quarterly profit beat analysts’ estimates as expenses fell.

     The Standard & Poor’s 500 Index rose 0.5 percent to 2,108.95 at 4 p.m. in New York, and closed at a three-week high. The Dow Jones Industrial Average added 75.90 points, or 0.4 percent, to 18,053.58, while the Nasdaq Composite Index climbed 0.7 percent. About 5.7 billion shares traded hands on U.S. exchanges Tuesday, 12 percent below the three-month average.

     “I was a little disappointed with the retail sales numbers today, so I was a little surprised by the rally,” said Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC. “Maybe the drumbeat of the September rate rise is something that may get pushed back to later in the year. Going forward it’s going to take earnings to push us higher. JPMorgan started the week of earnings off pretty well.”

     A report today showed consumer purchases decreased 0.3 percent in June after a 1 percent advance in May that was smaller than previously reported, curbing optimism about the strength of the rebound in spending during the second quarter.

     Greece’s financial crisis and turmoil in China’s equity market had recently diverted attention from corporate profits, U.S. economic data and the path of the Fed’s monetary policy.

     The S&P 500 last week fell as much as 4 percent from its all-time high, and has since recovered to trade within 1 percent of its record set in May as the Greek crisis neared a resolution and China shares stabilized. The benchmark gauge and the Dow are up 3 percent over four sessions, while the Nasdaq Composite has added 4 percent.

     Fed Chair Janet Yellen appears before Congress tomorrow for her semi-annual monetary policy testimony. Officials in June forecast the central bank would raise rates twice this year, signaling that September is the most likely month for liftoff. Policy makers have indicated a desire to see more evidence of labor-market improvement, particularly in wage gains, before raising rates.

     Other data releases this week that may provide clues on the pace of any rate increase include industrial production, housing starts and consumer sentiment.

     “With China and Greece hopefully in the rear-view mirror, we’re focused on domestic things, with Yellen’s testimony tomorrow and a retail sales number that hasn’t been increasing in the face of lower oil prices,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts.                      

     Quarterly earnings will also move more into focus as concerns about Greece wane. Goldman Sachs Group Inc., Intel Corp. and Google Inc. are among S&P 500 firms posting results this week. Analysts project earnings for companies on the equity benchmark dropped 6.4 percent in the second quarter.

     The Chicago Board Options Exchange Volatility Index fell 3.8 percent Tuesday to 13.37. The gauge, known as the VIX, had its biggest three-day drop since October. Nine of the S&P 500’s 10 main groups rose.

     Health-care companies advanced amid a rally in biotechnology. Biogen Inc. added 2.3 percent after Bank of America Merrill Lynch raised the stock to buy from neutral, while Gilead Sciences Inc. increased 2.5 percent. The Nasdaq Biotech Index rose for the ninth time in 10 sessions, up 2.3 percent today to an all-time high.

     Energy shares gained as West Texas Intermediate crude rose, after erasing early losses on speculation that the return of sanctioned Iranian oil will be gradual following an historic accord with world powers on the country’s nuclear program. Southwestern Energy Co. and Halliburton Co. rose more than 1.6 percent, while Chevron Corp. added 1 percent.

     Micron’s biggest gain in more than three years helped chipmakers in the benchmark index rise for a third session, their strongest such stretch in six weeks. The investment arm of one of China’s top universities is planning to offer $23 billion for Micron, a person familiar with the matter said. SanDisk Corp. jumped 3.4 percent, while Qorvo Inc. and Avago Technologies Ltd. increased more than 1.7 percent.

     Google Inc. advanced 2.2 percent in its strongest four- session stretch since Oct. 2013. The search giant’s shares hit a nine-month high as it steps up efforts against Apple Inc. with smartphone location tracking tools.

     Banks in the S&P 500 gained for a fourth day, their longest winning streak in three months. Wells Fargo & Co. added 0.9 percent after its quarterly earnings matched analysts’ estimates. Citigroup Inc. and Bank of America Corp. climbed at least 0.6 percent.

     Coca-Cola Co. rose 1.3 percent to a seven-week high after UBS AG upgraded the shares to buy from neutral. The firm sees the stock poised for gains in part as Coke benefits from higher prices.

     Spirit Airlines Inc. fell 7.4 percent to its lowest since October after the budget airline cut its forecast for operating margins for the rest of the year as pricing pressure from other carriers weighs on revenue. A Bloomberg index of U.S. airlines lost 0.3 percent.

     Johnson & Johnson slid 0.5 percent, halting three straight winning sessions, as its earnings exceeded analysts forecasts while revenue was in line with estimates.

     Navient Corp. sank 11 percent, the biggest drop in the S&P 500 Tuesday, after the student-loan servicer cut its outlook. Shares fell the most since the company was split from SLM Corp.in 2014.
 

Have a wonderful evening everyone.

 

Be magnificent!

Adaptability is not imitation.

It means power of resistance and assimilation.

Mahatma Gandhi

As ever,

 

Carolann

 

In the absence of clearly-defined goals, we become strangely loyal to performing daily trivia until ultimately we become enslaved by it.

                                                                                                                                                    -Robert Heinlein, 1907-1988

 

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

Dear Friends,

Tangents:

I read an article in a recent magazine entitled “Why we need a summer read.”

John Yemma writes: “Are there any more natural companions than summer vacation and summer reading?  Summer vacation is about breaking away from the routine, ignoring the clock, letting a breeze or a wave, a trail or a highway take you somewhere unexpected.  Summer reading works the same way.  Instead of  a work-year’s consumption of articles, books, PDFs, and  7,000 other types of must-read, must-improve, must-survive documents consumed during the work year, summer reading is about willingly giving yourself over to an author to guide you into an unexpected world.  People read for pleasure year-round, but for most of us slow immersion in  a book is possible only when we are free from other obligations.  Slow immersion is what summer vacation and summer reading are all about…No work of literature – and the bar is very high in  a world of Faulkner, Flannery O’Connor, Ralph Ellison, Carson McCullers, Alice Walker, Robert Penn Warren, Truman Capote, Cormac McCarthey, and many more captures the soul of the South as Harper Lee’s masterpiece, ‘To Kill a Mockingbird’ (which is why there is so much anticipation surrounding her new title, ‘Go Set a Watchman’)…A summer read isn’t required reading .  It is necessary reading.  As Atticus told Scout: ‘You never really understand a person until you consider things from his point of view…until you climb into his skin and walk around in it.”

Having just returned from a week of sailing, I had lots of time to read a couple of terrific books.  One that I can recommend is H is for Hawk by Helen Macdonald published this past year.  It is a memoir of coming to terms with the death of her father.

PHOTOS OF THE DAY

Women and girls wear traditional dresses during the annual Mitama Festival at the Yasukuni Shrine in Tokyo, Monday. Over 30,000 lanterns light up the precincts of the shrine, where more than 2.4 million war dead are enshrined, during the four-day festival that lasts from July 13 to 16. Thomas Peter/Reuters

A drummer performs amongst the shadows of models at the Cadet presentation during Men’s Fashion Week in New York, Monday. The four-day event by the Council of Fashion Designers of America is the New York debut of Men’s Fashion Week. Lucas Jackson/Reuters

Market Closes for July 13^th, 2015

Market Index	Close	Change
Dow Jones	17977.68	+217.27     +1.22%
S&P 500	2099.89	+23.27     +1.12%
NASDAQ	5071.512	+73.816     +1.48%
TSX	14528.33	+117.26
		+0.81%

International Markets

Market Index	Close	Change
NIKKEI	20089.77	+309.94
		+1.57%
HANG SENG	25224.01	+322.73
		+1.30%
SENSEX	27961.19	+299.79
		+1.08%
FTSE 100	6737.95	+64.57
		+0.97%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.680	1.685
CND. 30 Year Bond	2.342	2.339
U.S.    10 Year Bond	2.4373	2.3972
U.S. 30 Year Bond	3.2159	3.1899

Currencies

BOC Close	Today	Previous
Canadian $	0.78534	0.78980
US $	1.27334	1.26615
Euro Rate 1 Euro=		Inverse
Canadian $	1.40167	0.71343
US $	1.10082	0.90841

Commodities

Gold	Close	Previous
London Gold Fix	1154.00	1159.30
Oil	Close	Previous
WTI Crude Future	52.20	52.74

Market Commentary:

Canada

By Annelise Alexander

     (Bloomberg) — Canadian stocks capped the biggest two-day rally since February, as global equities rallied amid optimism that Greece clinched a deal with its creditors and will remain in the euro.

     Consumer shares paced gains in Canada’s benchmark stock gauge as all 10 main groups advanced. Northern Property Real Estate Investment Trust jumped 2.8 percent as REITs surged. New Gold Inc. and Teck Resources Ltd. jumped at least 7.6 percent for the biggest gains in the index as materials producers erased earlier losses.

     The Standard & Poor’s/TSX Composite Index jumped 122.15 points, or 0.9 percent, to 14,533.22 at 4 p.m. in Toronto. The benchmark equity has added 1.8 percent in the past two days, the most since Feb. 3, to trim its loss in 2015 to 0.7 percent.

     The S&P 500 rallied 1.1 percent, while the Stoxx Europe 600 Index capped its biggest four-day rally since 2011 after Greece reached a deal with creditors. The nation’s parliament will convene on Wednesday to vote on a bailout package that includes a bank recapitalization, potentially giving the ECB room to ease its liquidity restraints.

     All of the S&P/TSX’s 10 industry groups advanced on trading volume in line with the 30-day average.

     Health-care companies rose 1.5 percent. Concordia Healthcare Corp. jumped 3.7 percent, the highest close since April, after Cantor Fitzgerald LP upgraded the stock to buy.

     Home Capital Group Inc. fell 19 percent, the most since 1996, after preliminary second quarter results missed estimates.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index posting its best three-day rally this year, after Greece reached an agreement with its creditors.

     Technology and consumer shares rose the most, with Google Inc., Microsoft Corp. and Facebook Inc. up at least 2 percent. Netflix Inc. and Amazon.com Inc. surged more than 2.7 percent. MarkWest Energy Partners LP jumped 14 percent as the pipeline unit of refiner Marathon Petroleum Corp. plans to buy MarkWest, the second-biggest U.S. processor of natural gas, for about $15.8 billion. Marathon rose 7.9 percent to a record.

     The S&P 500 added 1.1 percent to 2,099.60 at 4 p.m. in New York, closing near its average price during the past 50 days after the gauge earlier jumped above its 100-day moving average for the first time this month. Dow Jones Industrial Average climbed 217.27 points, or 1.2 percent, to 17,977.68. The Nasdaq Composite Index rose 1.5 percent after its biggest gain since January.

     “It’s great hearing Greece is not going over the deep end,” said Rob Lutts, chief investment officer at Salem, Massachusetts-based Cabot Wealth Management Inc. “What’s good for the rest of the world for now is Greece staying as is and instituting these reforms. Last week’s volatility was all on the back of what’s going on in Greece, as well as in China, and today it’s pretty apparent the path is one of resolution.”

     Greek Prime Minister Alexis Tsipras surrendered to European demands for immediate action to qualify for up to 86 billion euros ($95 billion) of aid he needs to keep his country in the euro area. The Greek parliament has until Wednesday to pass into law key creditor demands including streamlining value-added taxes, broadening the tax base to increase revenue and curbing pension costs.                       

     The S&P 500 ended little changed last week, masking a volatile period accentuated by Greece’s financial crisis and turmoil in China’s equity market. Equities rallied 1.2 percent Friday, the best showing since May 8, recovering on optimism toward a deal between Greece and its creditors, and as stocks in China rebounded. The U.S. benchmark index is 1.5 percent below its record set in May.

     Investors will continue to weigh U.S. economic data this week for clues on when the Federal Reserve may raise interest rates. Reports will include data on retail sales, industrial production, housing starts and consumer sentiment.

     Fed Chair Janet Yellen said Friday she still expects to raise interest rates this year and repeated that the subsequent pace of increases will be gradual. She will deliver her semiannual testimony to Congress on Wednesday and Thursday.

     Corporate profits will also be in focus, with JPMorgan Chase & Co., Wells Fargo & Co. and Intel Corp. among S&P 500 firms reporting results this week. Analysts project earnings for companies in the equity benchmark dropped 6.4 percent in the second-quarter.                         

     The Chicago Board Options Exchange Volatility Index fell 17 percent Monday to 13.90. With Friday’s 16 percent decline, the gauge known as the VIX marked its biggest two-session slide since Jan. 2013. About 6 billion shares traded hands on U.S. exchanges today, 6.5 percent below the three-month average.

     All of the S&P 500’s 10 main groups rallied, with technology shares posting the strongest two-day gain this year, while consumer-discretionary companies had their biggest two-day move in five months.

     An index of 30 retailers in the S&P 500 climbed to an all- time high, bolstered by Netflix and Amazon as both reached records. Home Depot Inc. advanced 1.6 percent to a three-month high, while Priceline Group Inc. increased 2.5 percent. Under Armour Inc. jumped 3.6 percent and Nike Inc. added 1.7 percent as both stocks closed at records.

     Apple Inc. climbed 1.9 percent, while Google and Yahoo! Inc. rallied at least 2.2 percent to help pace technology’s rise. International Business Machines Corp. added 1.5 percent and had its best three-day increase in 2015.

     Applied Materials Inc. gained 2.9 percent, the most since February. David Einhorn said in an investor letter that his Greenlight Capital took a position in the semiconductor equipment manufacturer.

     Banks in the benchmark index rose for a third day, their best such streak this year. Treasury yields also advanced for a third session, and investors speculated that higher interest rates will help boost lenders’ profits. Bank of America Corp. and Citigroup Inc. gained at least 1.8 percent.

     Anacor Pharmaceuticals Inc. soared 56 percent to a record after the company said its experimental dermatitis drug helped patients in a final-stage trial.

     Edwards Lifesciences Corp added 3.4 percent, the most in four months, to reach an all-time high after the company was raised to outperform from sector perform at RBC Capital Markets by equity analyst Glenn Novarro.

     Airline stocks rose for the fifth time in six sessions, as American Airlines Group Inc. and SkyWest Inc. jumped at least 2.8 percent. Jet fuel prices fell 37 percent from a year earlier in the second quarter and are poised to boost margins, according to Bloomberg Intelligence.

     The Global X FTSE Greece 20 exchange-traded fund, a U.S.- listed ETF tracking Greek equities, slid 4.4 percent, reversing an earlier rise of 5.3 percent.

     Managed-care companies extended a slump from recent highs last month. Cigna Corp., Anthem Inc. and Humana Inc. all declined at least 1.1 percent. Aetna Inc. slipped 0.5 percent, and is down about 14 percent since reaching a record on June 25.

Reuters reported late Friday that at least three state attorneys general said they plan to examine Aetna’s proposed merger with Humana.

     Ascena Retail Group Inc. fell 13 percent, the most in more than nine months, after cutting its profit forecast for the year because of slower-than-expected sales at its Justice and Dressbarn stores.
 

Have a wonderful evening everyone.

 

Be magnificent!

To expect something is to look for something pleasant.

Searching for the pleasurable is a form of denial.

You cannot expect anything, because the expectation is within you,

and what you are waiting for is dependent on external forces.

Swami Prajnanpad

As ever,

 

Carolann

 

Most powerful is he who has himself in his own power.

                                  -Seneca, 3 BCE-65 AD

 

 

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

Dear Friends, 

Tangents: 

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

PHOTOS OF THE DAYAn Indian couple splashes water as it rains in New Delhi, Friday. India’s monsoon season, which runs from June to September, brings rains that are vital to agriculture. Altaf Qadri/AP

A Syrian refugee child, who has been living in Jordan with his family for two-and-a-half years after they fled violence in their Syrian hometown of Idlib, poses in his family’s tent at an informal settlement in Madaba city, near Amman, Jordan, Thursday. The number of Syrian refugees in neighboring countries has surpassed 4 million, the UN refugee agency said, adding that the total was on course to reach 4.27 million by the end of 2015.Muhammad Hamed/Reuters

Market Closes for July 7, 2015

Market Index	Close	Change
Dow Jones	17760.41	+211.79   +1.21%
S&P 500	2076.62	+25.31   +1.23%
NASDAQ	4997.696	+75.298
		+1.53%
TSX	14411.07	+132.58
		+0.93%

International Markets

Market Index	Close	Change
NIKKEI	19779.83	-75.67
		-0.38%
HANG SENG	24901.28	+508.49
		+2.08%
SENSEX	27661.40	+87.74
		+0.32%
FTSE 100	6673.38	+91.75
		+1.39%

Bonds

Bonds	% Yield
CND. 10 Year Bond	1.685
CND. 30 Year Bond	2.339
U.S.    10 Year Bond	2.3972
U.S. 30 Year Bond	3.1899

Currencies

BOC Close	Today
Canadian $	0.78980
US $	1.26615
Euro Rate 1 Euro=		Inverse
Canadian $	1.41251	0.70796
US $	1.11590	0.89614

Commodities

Gold	Close
London Gold Fix	1159.30
Oil	Close
WTI Crude Future	52.74

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, rebounding from a January low, amid optimism China’s markets are stabilizing and Greece will secure a bailout.

     Sun Life Financial Inc. and Manulife Financial Corp. rallied at least 1.9 percent as a decline in Canadian jobs sustained the view additional stimulus will be needed from the central bank. Bombardier Inc. sank 2.5 percent to the lowest level since 1993. Encana Corp. and Crescent Point Energy Corp. declined more than 4 percent as crude oil capped a second straight weekly drop.

     The Standard & Poor’s/TSX Composite Index rose 132.58 points, or 0.9 percent, to 14,411.07 at 4 p.m. in Toronto. The benchmark equity gauge lost 1.9 percent this week, the biggest one-week decline since March.

     Royal Bank of Canada jumped 1.5 percent and Toronto- Dominion Bank rose 1.1 percent as financial-services stocks increased 1.2 percent as a group. Eight of 10 industries in the S&P/TSX advanced on trading volume 1 percent higher than the 30- day average today.

     The Shanghai Composite Index jumped 4.5 percent, capping an 11 percent gain in two days, the biggest two-day advance since 2008. China is Canada’s second-largest trading partner after the U.S. and the world’s largest consumer of commodities.

     Greece submitted a package of measures to creditors to access a bailout of at least 53.5 billion euros, hailed by France as credible. The proposed spending cuts, pension savings and tax increases were being studied on Friday by the European Commission, the International Monetary Fund and the European Central Bank.

     The Canadian economy lost 6,400 jobs in June as the jobless rate held steady at 6.8 percent. Part-time work fell by 71,200, the biggest decline in more than four years. The Bank of Canada will deliver its next interest rate decision July 15 amid speculation a faltering economy will lead Governor Stephen Poloz to cut rates a second time this year.

     “This report is simply not strong enough in our mind to make up for a lot of the economic weakness that has been realized through the first half of the year,” said David Tulk, chief Canada macro strategist at Toronto-Dominion Bank’s TD Securities unit, in a note to clients. “We do not believe that this report challenges our call for a 25 basis-points cut in the overnight rate next week.”

 US

By Sofia Horta e Costa and Annelise Alexander

     (Bloomberg) — Stock investors got jolted in a zigzag week, with plunges around the world giving way to the biggest rallies in at least three years for China and Europe.

     Spurred by optimism on Greece, the Stoxx Europe 600 Index climbed 4.3 percent on Thursday and Friday, erasing earlier losses with the biggest two-day advance since 2011. The Shanghai Stock Exchange Composite Index jumped 11 percent in two sessions, the most in almost seven years, while the Standard & Poor’s 500 Index added 1.2 percent Friday to wipe out a weekly decline.

     While investors have sometimes come to regret bouts of bullishness of late, the end-of-week gains defused global markets where turbulence has ruled for the last month. The Chicago Board Options Exchange Volatility Index decreased 16 percent on Friday, the biggest drop of the year.

     “We’re clearly ending the week with a loud sigh of relief,” said Daniel Murray, head of research at EFG Asset Management in London. “It’s been interesting, but I think we all look forward to moving on.”

     Stocks are advancing in a global economy that while not exactly surging, is still growing. Morgan Stanley predicts worldwide expansion of almost 4 percent in the second half of this year, up from 2.9 percent in the first six months. The International Monetary Fund sees 2015 growth of 3.3 percent.

     The Stoxx Europe 600 rose 1.4 percent for the week amid speculation that Greece may finally secure a bailout. Shares had earlier tumbled to the lowest level since February, flirting with a correction, as Greek voters rejected austerity.

     Equities in Europe’s so-called peripheral markets saw the biggest swings — first bearing the brunt of a two-day selloff following the Greek vote, then rebounding.

     Spain’s IBEX 35 Index has surged 6.7 percent since Tuesday’s close, the most since 2012, while Portugal’s PSI 20 jumped 8.7 percent, the biggest three-day advance since 2010. In Italy, the FTSE MIB added 9.4 percent.

     The Athens stock exchange will stay closed through July 13. A U.S.-listed exchange-traded fund tracking its stocks climbed 3.8 percent for the week, paring its loss since the bourse closed on June 29 to 4.4 percent.

     The prospect of a deal to end a standoff between creditors and Greece’s Syriza-led government brought relief to financial markets. After months of escalating tension and price swings, Greece offered to meet most of the demands made by creditors in exchange for a bailout of 53.5 billion euros ($60 billion). The proposal still faced a weekend of political wrangling.

     Aiding global sentiment was the rebound in China, where unprecedented government intervention helped curb a stock rout that erased $3.9 trillion in less than a month.

     The Shanghai Composite Index rallied 4.5 percent to3,877.80 at Friday’s close, adding to Thursday’s 5.8 percent surge. With more than 1,300 companies still halted on mainland exchanges, trading was limited to 53 percent of the market.

     Official measures to support shares became more extreme during the week as declines deepened. They included a ban on stockholders and executives from selling stakes in listed companies for six months, an order for companies to buy equities and an investigation into short-selling.

     The rebound pared losses by the Shanghai Composite since its June 12 high to 25 percent. While the median price-to- earnings ratio in China has dropped to 57 from 108 at the height of the rally, valuations are almost three times as high as those on the S&P 500.

     U.S. equity investors watched stocks slip below a support level untouched since October, only to climb back to enter the weekend with the strongest momentum in two months.

     The S&P 500 ended flat, masking a volatile week. Stocks had the fourth-biggest drop of the year Wednesday that sent the benchmark gauge below its average price for the past 200 days, a move that has sparked rebounds in the past. Equities rallied 1.2 percent Friday, the best showing since May 8.

     The VIX, which jumped 19 percent in the first four days of the week, erased nearly all of that on the last day as the gauge retreated the most since December.

     “It was a volatile week, that’s for sure,” said Dan Greenhaus, chief global strategist in New York at BTIG LLC. “Clearly investors are focused squarely on Greek negotiations and the Chinese stock market, but the ramifications of both appear to be limited, hence the end-of-the week rally.”

     China and Greece diverted attention from U.S. economic data and the path of the Federal Reserve’s monetary policy, as investors grow concerned about global growth.

     While the IMF on Thursday cut its forecast for global growth this year, citing a weaker first quarter in the U.S., it expressed confidence that market turbulence from China to Greece won’t cause widespread damage.

     Minutes of the Federal Reserve’s June meeting, published Wednesday, indicated officials thought tighter monetary policy was warranted, despite concern over risk from abroad. Federal Reserve Chair Janet Yellen said Friday she still expects to raise interest rates this year.

     Alcoa Inc. unofficially kicked off the earnings season Wednesday. JPMorgan Chase & Co. and Wells Fargo & Co. are among S&P 500 firms reporting results next week. Analysts project earnings for companies on the gauge dropped 6.4 percent in the second quarter.

     “We could end up with some positive surprises,” said John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York. “If we don’t, I’ll have to go back to the drawing board.”

 

 

Have a wonderful evening everyone.

 

Be magnificent!

 It’s a funny thing about life;

if you refuse to accept anything but the best, you very often get it.

W. Somerset Maugham

 

As ever,

Leyla

All things are subject to interpretation whichever interpretation prevails

at a given time is a function of power and not truth.

Friedrich Nietzsche

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7