Category: Events

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Balloons bearing messages from young people are released over Tutzing Castle near Lake Starnberg in Germany, in the run-up to the G7 Summit in Schloss Elmau which begins on June 7. The youth initiative Plant-for-the-Planet has called upon the G7 heads of government to support the greatest reforestation project in the history of humankind. Plant-for-the-Planet/AP

A laborer carries a basket of tomatoes on his head while walking along a row of empty wooden boxes in a vegetable wholesale market in Lahore, Pakistan. Mohsin Raza/Reuters

Market Closes for June 4^th, 2015

Market Index	Close	Change
Dow Jones	17905.58	-170.69   -0.94%
S&P 500	2095.84	-18.23   -0.86%
NASDAQ	5059.125	-40.106   -0.79%
TSX	15019.39	-135.29
		-0.89%

International Markets

Market Index	Close	Change
NIKKEI	20488.19	+14.68
		+0.07%
HANG SENG	27551.89	-105.58
		-0.38%
SENSEX	26813.42	-23.78
		-0.09%
FTSE 100	6859.24	-91.22
		-1.31%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.741	1.780
CND. 30 Year Bond	2.335	2.369
U.S.    10 Year Bond	2.3070	2.3642
U.S. 30 Year Bond	3.0423	3.1022

Currencies

BOC Close	Today	Previous
Canadian $	0.79980	0.80300
US $	1.25031	1.24532
Euro Rate 1 Euro=		Inverse
Canadian $	1.40481	0.71184
US $	1.12357	0.89018

Commodities

Gold	Close	Previous
London Gold Fix	1176.00	1190.00
Oil	Close	Previous
WTI Crude Future	58.00	59.64

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, erasing a three-day advance, as crude and gold prices declined amid a standoff in Greek debt talks and speculation OPEC will refrain from cutting its production targets.

     MEG Energy Corp. and Bellatrix Exploration Ltd. dropped more than 4.8 percent as crude slid to a seven-week low. Barrick Gold Corp. lost 2.1 percent as gold retreated. Teck Resources Ltd. and First Quantum Minerals Ltd. tumbled at least 2.9 percent as copper slumped with base metals.

     The Standard & Poor’s/TSX Composite Index fell 135.29 points, or 0.9 percent, to 15,019.39 at 4 p.m. in Toronto. The benchmark equity gauge had risen 0.9 percent in the previous three trading days.

     Raw-materials and energy producers sank at least 1.2 percent. All 10 industries in the S&P/TSX retreated on trading volume 9.1 percent lower than the 30-day average.

     OceanaGold Corp. lost 4.2 percent and Centerra Gold Inc. slipped 5.1 percent. Gold for August delivery tumbled 0.8 percent to settle at $1,175.20 an ounce in New York, a four-week low. Copper dropped to the lowest in six weeks as industrial metals from aluminum to zinc retreated on concern slowing economic growth from China to U.S. will curb demand.

     The Organization of Petroleum Exporting Countries is forecast to keep its output target unchanged on Friday, according to all but one of 34 analysts and traders in a Bloomberg survey last month.

     The International Monetary Fund urged the Federal Reserve to delay raising interest rates until the first half of 2016 as it cut its U.S. growth forecast to 2.5 percent this year.

     Negotiations over Greece’s debt continued, with the country becoming the first to defer a payment to the IMF since the 1980s. The first of four payments was originally due this Friday and totals almost 1.6 billion euros ($1.78 billion) this month. The latest round of talks, between Greek Prime Minister Alexis Tsipras and European Commission President Jean-Claude Juncker, failed to yield a breakthrough.

US

 By Joseph Ciolli

     (Bloomberg) — U.S. stocks declined, with the Standard & Poor’s 500 Index reaching a four-week low, as a slide in oil and metals weighed on commodities producers and Greece asked for a deferral on its debt payments.

     Freeport-McMoRan Inc., DuPont Co. and fertilizer maker Mosaic Co. lost at least 1.7 percent. Chesapeake Energy Corp. dropped 3.8 percent to lead the energy group lower. Verizon Communications Inc. slid 2 percent after an analyst downgrade. Apparel maker L Brands Inc. added 1.2 percent as May sales exceeded estimates. Wynn Resorts Ltd. jumped 7.2 percent on signs of improvement in Macau’s gambling economy.

     The S&P 500 lost 0.9 percent to 2,095.84 at 4 p.m. in New York. The index fell below its average price during the past 50 days, though it’s still within 1.7 percent of its all-time high. The Dow Jones Industrial Average declined 170.69 points, or 0.9 percent, to 17,905.58. The Nasdaq Composite Index retreated 0.8 percent. About 6.3 billion shares traded hands on U.S. exchanges, 2.3 percent below the three-month average.

     “We’ve hit a point where we have conflicting sentiment, and that’s why we’re sitting here and grinding sideways,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. “Stock investors are taking an eyebrow-raised look at the bond market, wondering if they’re missing anything. Plus you always have the Greece situation always lurking around in the background.”

     The S&P 500 has alternated between gains and losses in the past four sessions as it churns in the tightest trading range at this time of year since 2006. The index hasn’t had a 10 percent decline since October 2011, the longest stretch without a drop of that magnitude since a 55-month period ending in October 2007.

     Greece today became the first country to defer a payment to the International Monetary Fund since the 1980s as its game of brinkmanship with creditors goes down to the wire. With Prime Minister Alexis Tsipras getting ready to address parliament on Friday after receiving a list of creditors’ demands, the step underscores the state of the country’s shriveling finances.

     Global bond markets recovered from an earlier selloff, which took the yield on the 10-Year U.S. Treasury to its highest level since October. European Central Bank chief Mario Draghi said yesterday markets should get used to greater volatility while forecasting faster euro-area inflation rates.

     Investors are closely watching economic data for clues on timing of a potential interest rate rise from the Federal Reserve. Fed Bank of St. Louis President James Bullard said Wednesday “markets have appropriately moved back the likely date of policy firming,” amid recent weaker-than-forecast data.

     The IMF said today the Fed should hold off from raising interest rates until the first half of 2016, as the fund cut its U.S. growth forecast for the second time in three months.

     A report today showed jobless claims decreased by 8,000 in the latest week, while the total number of people receiving unemployment insurance payments was the smallest in more than 14 years, signaling the job market remains firm.

     The government’s monthly employment data are due Friday, and economists predict the economy added 225,000 jobs in May, compared with April’s 223,000, with the unemployment rate remaining at 5.4 percent.

     The Chicago Board Options Exchange Volatility Index jumped 7.7 percent Thursday to 14.71, its highest since May 7. The gauge, known as the VIX, last month had its steepest drop since February.

     All of the S&P 500’s 10 main groups slumped Thursday, with raw-material and energy shares dropping the most after the IMF cut its U.S. growth forecast. The materials group hit a six-week low. Chemical maker LyondellBasell Industries NV lost 3.2 percent, its biggest slide since March. Monsanto Co. fell 1.9 percent to its lowest in more than two months.

     Capital goods producers Precision Castparts Corp. and Illinois Tool Works Inc. declined at least 1.7 percent. Boeing Co. and Textron Inc. retreated 1.8 percent.

     Exxon Mobil Corp. slid 0.9 percent near a two-month low as West Texas Intermediate crude fell 2.8 percent. Chesapeake Energy, Transocean Ltd. and Diamond Offshore Drilling Inc. all sank more than 1.8 percent, with energy companies in the S&P 500 dropping for the eighth time in nine sessions.

     Banks in the benchmark index fell for first time in four days as Treasury yields slipped from their highest level in almost eight months. Wells Fargo & Co. retreated 1.4 percent after closing Wednesday at an all-time high, while Bank of America Corp. lost 0.9 percent.

     Transportation companies reversed Wednesday’s gains, with airlines pacing the decline. JetBlue Airways Corp., American Airlines Group Inc. and United Continental Holdings Inc. fell at least 1.6 percent. The Dow Jones Transportation Average decreased 0.9 percent after rallying 1.2 percent Thursday.

     Verizon dropped 2 percent, the most since December, to a nearly three-month low after JPMorgan Chase & Co. downgraded the shares to neutral from overweight.

     T-Mobile US Inc. gained 2.6 percent to a seven-year high after a report that the fourth-largest U.S. wireless company is in talks to merge with Dish Network Corp. Dish jumped 4.9 percent, the most since November.

 

Have a wonderful evening everyone!

 
Be magnificent!

“Believe you can and you’re halfway there.” –Theodore Roosevelt               

 

As ever,

Karen

“ Life is not measured by the number of breaths we take, but by the moments that take our breath away.” –Maya Angelou

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A commercial aircraft flies past the moon in this photo taken from Teglas, 228 kilometers (about 140 miles) east of Budapest, Hungary.

Joggers run past a painted mural along the BeltLine in Atlanta. Today marks National Running Day, celebrated annually on the first Wednesday in June. National Running Day was created in 2009 by some of the county’s biggest running clubs and organizations to draw attention to the benefits of the activity. David Goldman/AP

Market Closes for June 3^rd, 2015

Market Index	Close	Change
Dow Jones	18076.27	+64.33   +0.36%
S&P 500	2114.07	+4.47   +0.21%
NASDAQ	5099.231	+22.707   +0.45%
TSX	15154.68	+49.94
		+0.33%

International Markets

Market Index	Close	Change
NIKKEI	20473.51	-69.68
		-0.34%
HANG SENG	27657.47	+190.75
		+0.69%
SENSEX	26837.20	-351.18
		-1.29%
FTSE 100	6950.46	+22.19
		+0.32%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.780	1.710
CND. 30 Year Bond	2.369	2.297
U.S.    10 Year Bond	2.3642	2.2624
U.S. 30 Year Bond	3.1022	3.0143

Currencies

BOC Close	Today	Previous
Canadian $	0.80300	0.80600
US $	1.24532	1.24070
Euro Rate 1 Euro=		Inverse
Canadian $	1.40279	0.71287
US $	1.12644	0.88775

Commodities

Gold	Close	Previous
London Gold Fix	1190.00	1192.80
Oil	Close	Previous
WTI Crude Future	59.64	61.26

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a third day as Canaccord Genuity Group Inc. surged to lead financial services shares and investors watched the continuing Greek debt talks.

     WestJet Airlines Ltd. advanced 0.7 percent after posting an increase in traffic for May. Canaccord climbed 4.5 percent after reporting better-than-forecast earnings. Stingray Digital Group Inc. surged 16 percent in its trading debut.

     The Standard & Poor’s/TSX Composite Index rose 49.94 points, or 0.3 percent, to 15,154.68 at 4 p.m. in Toronto. The benchmark equity gauge is up 0.9 percent in the past three trading days.

     Eight of 10 industries in the S&P/TSX advanced on trading volume 12 percent lower than the 30-day average. Royal Bank of Canada increased 1.4 percent and Bank of Nova Scotia rose 0.9 percent.

     Canaccord gained 4.5 percent as financial-services companies increased 0.8 percent as a group. The industry accounts for about one-third of the index by weighting.

     Monetary policy stimulus is filtering through to the real economy in Europe, said European Central Bank President Mario Draghi, after officials kept interest rates on hold. Growth in 2015 is expected to average 1.5 percent, 1.9 percent in 2016, and 2 percent by 2017, the central bank said.

     Negotiations over Greece’s debt continued as the first of four payments comes due this Friday to the International Monetary Fund. The payments total almost 1.6 billion euros ($1.78 billion) this month. Greek Prime Minister Alexis Tsipras is meeting with European Commission President Jean-Claude Juncker in Brussels this evening to discuss next steps.

     Canada reported the second-biggest merchandise trade deficit ever in April, narrowing from a record in March as exports tumbled for a fourth straight month. The deficit of C$2.97 billion followed a revised March gap of C$3.85 billion.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks advanced, after falling for the third time in four sessions, as banks and insurers rose with Treasury yields and investors speculated Greece will reach a deal with its creditors.

     The Standard & Poor’s 500 Index added 0.2 percent to 2,114.26 at 4 p.m. in New York, and intraday came within 0.5 percent of its all-time closing high set last month.

     “The market is under the assumption that something is going to get done in Greece,” said Robert Pavlik, who helps oversee $9 billion as chief market strategist at Boston Private Wealth in Boston. “When the market holds up, people drive money back into stocks, and we’re still in an upward trajectory. U.S. equities still have upside potential.”

     Investors are speculating that Greece will reach a deal with European leaders and the International Monetary Fund before payment deadlines due this month. Prime Minister Alexis Tsipras will hear details of a final proposal from creditors when he meets European Commission President Jean-Claude Juncker in Brussels on Wednesday.

     Investors are also assessing economic reports for clues on when the Federal Reserve will raise interest rates. The economy expanded in the past two months, even as manufacturers in some regions took a hit from a stronger dollar and a slowdown in energy-related investment, the Fed’s Beige Book report showed today. Economists project the first Fed rate increase will come in September.

     Meanwhile, service industries expanded in May at the slowest pace in 13 months, signaling tempered improvement in the biggest part of the economy. A separate report earlier showed companies added more workers in May than the prior month, a sign job growth is getting back on track after a slow start to the year.

     The government’s employment data is due Friday, and economists predict the economy added 227,000 jobs in May, compared with April’s 223,000, with the unemployment rate remaining at 5.4 percent.

     European Central Bank President Mario Draghi said Wednesday monetary policy stimulus is filtering through to the real economy, as he insisted the ECB needs to see its bond-buying plan through to the central bank’s inflation goal of just below 2 percent. He also said markets must get used to periods of higher volatility, in comments at a press conference in Frankfurt, after officials kept interest rates on hold.

     The S&P 500 hasn’t had back-to-back gains in more than two weeks, though it’s still less than 1 percent below its May record. The index’s annual advance remains among the worst in developed markets amid mixed economic data and as investors cope with the prospect that the Fed will raise rates this year.

 

Have a wonderful evening everyone!

 
Be magnificent!

 

 “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” –Maya Angelou

As ever,

Karen

 “When one door of happiness closes, another opens, but often we look so long at the closed door that we do not see the one that has been opened for us.” –Helen Keller

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A Rufous-tailed hummingbird, Amazilia tzacatl, flies while approaching its nest on a tree in San Jose. Juan Carlos Ulate/Reuters

A cow stands in the middle of a busy road as auto-rickshaws pass by in Bengaluru, India.

Market Closes for June 2^nd, 2015

Market Index	Close	Change
Dow Jones	18011.94	-28.43   -0.16%
S&P 500	2109.60	-2.13   -0.10%
NASDAQ	5076.523	-6.405   -0.13%
TSX	15104.74	+30.61
		+0.20%

International Markets

Market Index	Close	Change
NIKKEI	20543.19	-26.68
		-0.13%
HANG SENG	27466.72	-130.44
		-0.47%
SENSEX	27188.38	-660.61
		-2.37%
FTSE 100	6928.27	-25.31
		-0.36%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.710	1.634
CND. 30 Year Bond	2.297	2.231
U.S.    10 Year Bond	2.2624	2.1794
U.S. 30 Year Bond	3.0143	2.9338

Currencies

BOC Close	Today	Previous
Canadian $	0.80600	0.79834
US $	1.24070	1.25261
Euro Rate 1 Euro=		Inverse
Canadian $	1.38369	0.72270
US $	1.11525	0.89666

Commodities

Gold	Close	Previous
London Gold Fix	1192.80	1199.90
Oil	Close	Previous
WTI Crude Future	61.26	60.20

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose a second day as commodities producers advanced and crude gained amid a slump in the dollar.

     Air Canada added 1.3 percent after saying it will cut costs more than previously forecast to increase the airline’s profitability. Sherritt International Corp. surged 6.7 percent as most industrial metals rose. Baytex Energy Corp. and Penn West Petroleum Ltd. advanced at least 3.4 percent as crude prices increased.

     The Standard & Poor’s/TSX Composite Index rose 30.61 points, or 0.2 percent, to 15,104.74 at 4 p.m. in Toronto. The benchmark equity gauge is up 3.2 percent this year.

     First Quantum Minerals Ltd. jumped 5 percent and Teck Resources Ltd. climbed 5.7 percent as raw-materials producers advanced 0.9 percent as a group, the most in the S&P/TSX. Five of 10 industries in the benchmark Canadian equity gauge increased on trading volume 11 percent lower than the 30-day average today.

     Copper rose as the dollar posted the biggest decline since March against a basket of 10 major trading partners, boosting the appeal of raw materials as alternative assets.

     Negotiations over Greece’s debt continued as the first of four payments comes due this Friday to the International Monetary Fund. The payments total almost 1.6 billion euros ($1.78 billion) this month. Greek Prime Minister Alexis Tsipras said his government had submitted a new proposal while officials from the country’s creditors were said to have agreed on what would be a final offer to avoid the country defaulting.

     Air Canada soared 1.3 percent, to the highest level since 2007. Cost savings of 21 percent on each available seat mile are now expected by the end of 2018, higher than the previous target of 15 percent given at the investor day two years ago, Canada’s largest airline said.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks declined, with equities earlier falling to a three-week low, while investors weighed economic data and potential progress in Greece’s debt talks.

     Delta Airlines Inc. dropped 2.6 percent after cutting its forecast on a second-quarter revenue measure. Semiconductors slid as Intel Corp. fell 1.9 percent. Managed-care providers weighed on health-care shares. Energy companies rose along with oil prices, while Freeport-McMoRan Inc. and Alcoa Inc. jumped as the dollar’s biggest slide in more than two months helped boost raw-material companies.

     The Standard & Poor’s 500 Index fell 0.1 percent to 2,109.60 at 4 p.m. in New York, after losing as much as 0.6 percent and bottoming near its average price for the past 50 days. The Dow Jones Industrial Average lost 28.43 points, or less than 0.1 percent, to 18,011.94. The Nasdaq Composite Index slid 0.1 percent.

     The S&P 500 fluctuated Monday between gains and losses before closing higher for the first time in three sessions. The gauge has fallen 1 percent from its May 21 all-time high, trimming its advance in 2015 to 2.5 percent.

     “Yesterday was a microcosm of what we’ve seen for several months now — big intraday swings, only to end up little changed,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts. “The focus is on Friday’s big employment number, and there’s a lot of indecision. If the situation in Greece deteriorates, it leaves a lot of downside potential for the U.S. stock market.”

     European leaders and the head of the International Monetary Fund agreed to step up the intensity of talks over Greece’s fate after a meeting in Berlin on how to prevent the Mediterranean nation defaulting. The Greek government, which said it hasn’t received any draft plan, has submitted its own proposal aimed at breaking the deadlock, according to Prime Minister Alexis Tsipras.

     Greece faces a debt repayment to the IMF on Friday. While the country claims it can make the payment, it’s the smallest of four totaling almost 1.6 billion euros ($1.75 billion) this month.

     Investors also continued to assess economic data for potential clues on on the timing of a Federal Reserve interest- rate increase. Data Monday showed manufacturing expanded more than forecast in May, while consumer purchases unexpectedly stalled in April. In a report today, factory orders slipped more than economists’ forecast.

     Labor market reports on private payrolls growth, jobless claims and the government’s monthly non-farm payrolls data are all due later this week. The economy added 227,000 jobs in May, compared with April’s 223,000, and the unemployment rate will remain at 5.4 percent, economists predict.

     The central bank has indicated that any increase in borrowing costs would be shallow and gradual. Economists forecast the Fed will raise rates in September. Fed Governor Lael Brainard said Tuesday a recent run of weak data casts doubt on the strength of the economy, in a speech that suggested she’s open to a delay in the Fed’s timetable for an interest-rate increase this year.

     The Chicago Board Options Exchange Volatility Index rose 1.9 percent Tuesday to 14.24, after earlier rising as much as 7.7 percent. The gauge, known as the VIX, slipped 4.9 percent in May for its second straight monthly decline. About 5.9 billion shares traded hands on U.S. exchanges, 8.3 percent below the three-month average.

     Five of the S&P 500’s 10 main groups gained, led by raw- material and energy shares. Utilities and health-care fell the most.

     Health-care companies in the benchmark slipped as Vertex Pharmaceuticals Inc., Biogen Inc. and Eli Lilly & Co. declined more than 1.3 percent. Health insurance providers Aetna Inc. and Cigna Corp. slumped at least 1.6 percent.

     Utilities retreated 1.4 percent, the most in a month, as rising U.S. Treasury yields make the group’s high dividend payout less attractive. Xcel Energy Inc. and CMS Energy Corp. fell more than 1.9 percent.

     Semiconductors in the S&P 500 declined for a second session. Intel Corp. fell 1.9 percent a day after agreeing to acquire Altera Corp. for $16.7 billion. The chipmaker has retreated 3.5 percent over the last two days. Avago Technologies Ltd. and Microchip Technology Inc. lost more than 1.6 percent.

     The dollar’s worst drop in more than two months helped lift raw-material shares and companies that earn substantial revenue overseas. A Bloomberg gauge on the U.S. currency fell 1.3 percent. Transocean Ltd. and Diamond Offshore Drilling Inc. added at least 3.7 percent to pace energy’s climb amid oil’s rise. A weaker dollar increases oil’s investment appeal.

     Freeport-McMoRan rallied 5.7 percent, its best gain in seven weeks. Steelmaker Nucor Corp. jumped 3.8 percent, while Alcoa advanced 1.6 percent.

     Boeing Co. climbed 1.4 percent, the best in the Dow, to pace an advance in industrial shares. Kansas City Southern and Caterpillar Inc. rose at least 0.7 percent.

     Apparel maker PVH Corp. jumped 7.1 percent, the biggest in nine months. Quarterly results exceeded analysts’ forecasts, the company boosted its full-year earnings forecast and announced a $500 million three-year stock repurchase program. Ralph Lauren Corp. added 2.9 percent.

     Also among consumer discretionary companies, Priceline Group Inc. rallied 2.5 percent, the most in more than three months, and Dollar General Corp. rose 3 percent, the biggest gain since March 12, after first-quarter profit topped analysts’

estimates, helped by sales of tobacco, candy and health products.

     Zions Bancorp. soared 6.7 percent to the highest level in almost 14 months after a corporate restructuring plan prompted analysts to upgrade its shares. Comerica Inc. and Regions Financial Corp. advanced more than 1.5 percent.

 

Have a wonderful evening everyone!

Be magnificent!

 

“You can never cross the ocean until you have the courage to lose sight of the shore”. –Christopher Columbus

 

As ever,

Karen 

 

“The mind is everything. What you think you become”.  –Buddha

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Delegates from the inaugural China Australia Millennial Project (CAMP) summit stand atop Sydney Harbor Bridge Monday, with Sydney Opera House in the foreground. The climb was the opening event of the five-day summit, which is being promoted as a way for ‘industry and government leaders from both countries to create a more innovative, collaborative Australia-China relationship.’ David Gray/Reuters

A six-year-old poodle named Luisa, who has dyed fur, walks with her owner in Beijing Monday. The owner said it cost her about 500-600 RMB ($80-90) to dye her dog’s fur. Kim Kyung-Hoon/Reuter

Market Closes for June 1^st, 2015

Market Index	Close	Change
Dow Jones	18040.37	+29.69   +0.16%
S&P 500	2111.73	+4.34   +0.21%
NASDAQ	5082.930	+12.904   +0.25%
TSX	15074.13	+60.04
		+0.40%

International Markets

Market Index	Close	Change
NIKKEI	20569.87	+6.72
		+0.03%
HANG SENG	27597.16	+172.97
		+0.63%
SENSEX	27848.99	+20.55
		+0.07%
FTSE 100	6953.58	-30.85
		-0.44%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.634	1.624
CND. 30 Year Bond	2.231	2.210
U.S.    10 Year Bond	2.1794	2.1267
U.S. 30 Year Bond	2.9338	2.8849

Currencies

BOC Close	Today	Previous
Canadian $	0.79834	0.80300
US $	1.25261	1.24533
Euro Rate 1 Euro=		Inverse
Canadian $	1.36842	0.73077
US $	1.09246	0.91537

Commodities

Gold	Close	Previous
London Gold Fix	1199.90	1191.40
Oil	Close	Previous
WTI Crude Future	60.20	60.45

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, after capping a monthly decline, as Valeant Pharmaceuticals International Inc. climbed and consumer-discretionary companies increased.

     Magna International Inc. and Linamar Corp. increased at least 3.4 percent to pace gains among consumer-discretionary stocks. Bank of Nova Scotia climbed 0.7 percent for a fourth- straight advance. Valeant increased 1.2 percent after surpassing Toronto-Dominion Bank in market capitalization on Friday.

     The Standard & Poor’s/TSX Composite Index rose 60.04 points, or 0.4 percent, to 15,074.13 at 4 p.m. in Toronto, erasing an earlier loss of as much as 0.2 percent. The benchmark Canadian equity gauge dropped 1.4 percent in May.

     Magna climbed 3.4 percent and Dollarama Inc. increased 3.6 percent as consumer-discretionary stocks jumped 1.8 percent as a group, the most in the S&P/TSX. Eight of 10 industries in the benchmark equity gauge increased on trading volume 9.7 percent below the 30-day average.

     Global auto-parts supplier stocks are close to a 17-month high as a new generation of technology-laden products have helped widen margins and boost profits, according to Bloomberg Intelligence analysts Kevin Tynan and Tanner Murphy.

     Investors are watching progress on Greek debt talks. European leaders and the head of the International Monetary Fund gathered in Berlin to discuss plans to present Greece with an offer to that would allow it to avoid default and stay in the euro. An agreement is closer, though not ready, a government spokesman said on Monday. Greece faces four payments totaling almost 1.6 billion euros ($1.78 billion) to the IMF this month.

     ARC Resources Ltd. lost 2.1 percent and Pengrowth Energy Corp. retreated 2.4 percent as oil halted a two-day advance.

     Bank of Nova Scotia gained 0.7 percent for a fourth straight advance after posting profit ahead of analysts’ estimates on Friday.

US

By Joseph Ciolli

     (Bloomberg) — U.S. stocks climbed, after equities posted their worst week in six, as better-than-forecast growth in manufacturing overshadowed data showing consumer spending stalled.

     Bristol-Myers Squibb Co. rose 2.9 percent to lead health- care shares higher, while airlines led a rebound in transportation companies. Consumer discretionary shares gained despite tepid spending by shoppers. Altera Corp. rallied 5.8 percent after Intel Corp. agreed to buy the company for $16.7 billion. EBay Inc. jumped 2 percent. Energy companies slipped with oil prices.

     The Standard & Poor’s 500 Index gained 0.2 percent to 2,111.73 at 4 p.m. in New York, after earlier rising as much as 0.6 percent. The Dow Jones Industrial Average increased 29.69 points, or 0.2 percent, to 18,040.37. The Nasdaq Composite Index and Russell 2000 Index rose 0.3 percent. About 6 billion shares traded hands on U.S. exchanges, 6.4 percent below the three- month average.

     “If economic data isn’t negative, but also not really positive, the market loves it,” said Timothy Ghriskey, the chief investment officer at Solaris Asset Management LLC in New York, who helps manage about $1.5 billion in assets. “What we saw today leads us to believe the Fed won’t be in a big hurry to be aggressive with raising rates, and that benefits stock prices. The M&A we’ve seen is a big positive as well.”

     Data today showed manufacturing expanded more than forecast in May as orders grew at the fastest pace in five months. A report also showed consumer purchases unexpectedly stalled in April, raising the risk the biggest part of the economy may take time to gain momentum. A separate gauge said construction spending increased more than estimated.

     Stocks fell last week, trimming their biggest monthly gain since February, amid concerns about the strength of a rebound from a weak first quarter. The S&P 500 climbed 1.1 percent in May, historically the second-worst month for U.S. equities, topped only by September.

     The index reached a record on May 21, while the Dow Jones Industrial Average and the Nasdaq Composite Index also set fresh highs. Equities in May moved in the narrowest trading range in eight months on the weakest volume this year.

     Last month’s gains came as data indicated the economy was settling into a moderate pace of growth after a first-quarter slump, with the Federal Reserve signaling any increase in borrowing costs would be shallow and gradual. Economists forecast the Fed will increase interest rates in September.

     Eight of the S&P 500’s 10 main groups rose Monday. Industrial, utility, technology and health-care shares advanced the most, while phone companies led declines.

     The Chicago Board Options Exchange Volatility Index gained 0.9 percent to 13.97, after earlier rising more than 7 percent. The gauge, known as the VIX, slipped 4.9 percent in May for its second straight monthly decline.

     Health-care companies, the best-performing group last month, added 0.4 percent. Bristol-Myers gained 2.9 percent, its biggest increase in two months, while Intuitive Surgical Inc. climbed 3 percent for its biggest gain in seven weeks. Gilead Sciences Inc. advanced 1.6 percent.

     Altera surged 5.8 percent, the most in the S&P 500, after Intel agreed to buy the chipmaker for $16.7 billion, adding to a record year for industry consolidation. The Philadelphia Stock Exchange Semiconductor Index added 0.1 percent, after swinging from a 0.8 percent gain to a 0.5 percent drop. Intel and Broadcom Corp. slumped more than 1.6 percent. Xilinx Inc. and Nvidia Corp. rose at least 1.1 percent.

     Software and services companies helped boost the tech group, as EBay and Intuit Inc. increased at least 1.9 percent. Facebook Inc. rose 1.4 percent.

     Consumer discretionary stocks in the benchmark gained even as data showed shoppers’ purchases unexpectedly stalled in April. Dollar Tree Inc., which is seeking federal regulators’ approval of its plan to buy Family Dollar Stores Inc., added 2.7 percent after agreeing to sell 330 of the target company’s stores to alleviate concerns that the combination would hurt competition.

     Goodyear Tire & Rubber Co. climbed 1.8 percent to its highest close since 2007, while D.R. Horton Inc. advanced 1.2 percent. An S&P index of homebuilders increased 0.7 percent after construction spending in April rose more than forecast.

     Luxury retailers Michael Kors Holdings Ltd., Coach Inc. and Nordstrom Inc. rose more than 0.8 percent. The gains came as personal income in April rose more than expected, though consumers used the increase to shore up their savings. Michael Kors tumbled 25 percent last week after its outlook disappointed investors.

     Transportation companies bounced after their worst month since January as airlines rallied. Delta Air Lines Inc., United Continental Holdings Inc. and JetBlue Airways Corp. added at least 2.6 percent.

     Energy companies declined as oil retreated. Transocean Ltd. and Apache Corp. dropped more than 1.4 percent, while Chesapeake Energy Corp. lost 1.8 percent.
 

 

Have a wonderful evening everyone!

Be magnificent!

 

“Two roads diverged in a wood, and I—I took the one less traveled by, And that has made all the difference.”  –Robert Frost

 

 As ever,

 

Karen

“You miss 100% of the shots you don’t take.” –Wayne Gretzky 

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Visitors enjoy the newly-opened One World Observatory, which takes up parts of the 100th, 101st and 102nd floors of the building, in New York Friday. Lucas Jackson/Reuters

A male emperor tamarin (Saguinus imperator) carries a four-week-old infant at Schoenbrunn Zoo in Vienna, Austria, Friday. The infant was born at the zoo on April 26 and measures 5 cm (2 inches) without its tail. Heinz-Peter Bader/Reuters

 

Market Closes for May 29^th, 2015

Market Index	Close	Change
Dow Jones	18010.68	-115.44   -0.64%
S&P 500	2109.23	-11.56   -0.55%
NASDAQ	5070.027	-27.948   -0.55%
TSX	15032.65	-74.35
		-0.49%

International Markets

Market Index	Close	Change
NIKKEI	20563.15	+11.69
		+0.06%
HANG SENG	27424.19	-30.12
		-0.11%
SENSEX	27828.44	+321.73
		+1.17%
FTSE 100	6984.43	-56.49
		-0.80%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.624	1.673
CND. 30 Year Bond	2.210	2.257
U.S.    10 Year Bond	2.1267	2.1355
U.S. 30 Year Bond	2.8849	2.8896

Currencies

BOC Close	Today	Previous
Canadian $	0.80300	0.80421
US $	1.24533	1.24345
Euro Rate 1 Euro=		Inverse
Canadian $	1.36897	0.73048
US $	1.09929	0.90968

Commodities

Gold	Close	Previous
London Gold Fix	1191.40	1185.00
Oil	Close	Previous
WTI Crude Future	60.45	57.68

Market Commentary:

Canada

By Joseph Ciolli

     (Bloomberg) — Canadian stocks fell, extending a monthly loss, as data showed the biggest contraction in the nation’s economy since 2009.

     Health-care stocks fell amid a 1.3 percent slide for Valeant Pharmaceuticals International Inc. Canadian Pacific Railway Ltd. and Canadian National Railway Co. decreased for a second day, losing more than 1.4 percent. Bank of Nova Scotia rose 1 percent after posting second-quarter profit that beat analysts’ estimates.

     The Standard & Poor’s/TSX Composite Index fell 116.63 points, or 0.8 percent, to 14,990.37 at 10:58 a.m. in Toronto. The benchmark Canadian equity gauge has dropped 1.5 percent in May, trimming its gain for the year to 2.5 percent.

     Canada’s gross domestic product fell at a 0.6 percent annualized pace in the first quarter, as collapsing energy prices prompted a plunge in business investment. The drop exceeded all 22 economist forecasts in a Bloomberg News survey. Statistics Canada also revised its fourth-quarter growth estimate to 2.2 percent, from 2.4 percent previously.

     Data also showed the U.S. economy shrank in the quarter, held back by harsh winter weather, a strong dollar and delays at ports. GDP contracted at a 0.7 percent annualized rate, revised from a previously reported 0.2 percent gain.

     All 10 industries in the S&P/TSX slipped on trading volume 16 percent lower than the 30-day average. Industrial and consumer-staples companies dropped the most, tumbling more than 1 percent. Financial companies, which account for about one- third of the index by weighting, fell 0.8 percent.

     Bank of Nova Scotia added 1 percent. Earnings for Canada’s third-largest lender by assets beat forecasts as gains in capital markets helped counter a dip in international banking.

     Scotiabank is the last of Canada’s biggest lenders to report quarterly results, with all six beating estimates on net income. Bank of Canada, Canadian Imperial Bank of Commerce and National Bank of Canada posted higher profit fueled by gains in capital markets, while Toronto-Dominion Bank and Bank of Montreal saw profits dip from a year earlier as restructuring costs crimped results.

     While Valeant declined 1.3 percent, the company again surpassed Toronto-Dominion’s position as Canada’s second-largest stock as the two jockey for position behind leader Royal Bank of Canada. Valeant, the top performer in Canada’s benchmark equity gauge this year, briefly topped Toronto-Dominion’s market capitalization yesterday before slipping back to the No. 3 spot at the market’s close.

     Toronto-Dominion slumped 1.9 percent today.

     Mining companies advanced, with New Gold Inc. and Kinross Gold Corp. increasing more than 2.3 percent. The S&P/TSX Gold Index added 0.5 percent, extending its three-day gain to 2.4 percent.

US

By Jennifer Kaplan

     (Bloomberg) — Not so bad, considering. A month that began with investors blindsided by a global rout in sovereign debt and a selloff in high-flying equities ended with stocks near all-time highs.

     The Standard & Poor’s 500 Index climbed 1.1 percent in May, historically the second-worst month for American equities. Treasuries capped the period with their first weekly gain since April 17, while the dollar rebounded 2.3 percent in May after halting a string of nine straight advances.

     Stocks rose as data indicated the economy was settling into a moderate pace of growth after a first-quarter slump, with the Federal Reserve signaling any increase in borrowing costs would be shallow and gradual. Equities also got a boost from a surprise gain in profits and a record $214 billion of announced acquisitions.

     “We were just a little bit too pessimistic,” Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management LLC, said in a phone interview. Voya oversees $215 billion. “That’s why the market has been grinding higher. There was a lot of doom and gloom, especially in the first quarter.”

     The S&P 500 reached a record May 21, while the Dow Jones Industrial Average and the Nasdaq Composite Index also set fresh highs, even as equities bounced in the narrowest trading range in eight months on the weakest volume this year.

     Equities churned higher as reports from hiring to housing indicated the economy was recovering from a first-quarter slowdown, though not fast enough to warrant higher rates any time soon. Meanwhile, S&P 500 companies, which were forecast at the start of May to deliver the first decline in quarterly earnings since 2009, managed to eke out a profit.

     Minutes of the central bank’s April meeting signaled that an interest-rate boost in June was unlikely, and Fed Chair Janet Yellen separately said that while she anticipates raising borrowing costs this year, any further increases would be gradual.

     The Fed statements and weaker-than-estimated readings on inflation helped bond markets stabilize after a three-week rout had erased more than $400 billion from fixed-income markets.

     Concern about the strength of the economy pressured stocks on the last day of the month, with the S&P 500 slipping 0.9 percent, as data raised concern the slowdown persisted past the first quarter. Anxiety over the standoff in Greece’s debt crisis also reignited.

     “I think in the market there is kind of a continual theme here of the market struggling to be able to sustain anything either up or down,” said Jim Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management Inc., which oversees $347 billion. “It’s been a very narrow range here since last fall. It has broken out to marginal new highs along the way, but it hasn’t really been able to sustain an advance by doing so.”

     Volatility in equities eased in May, with the Chicago Board Options Exchange Volatility Index sliding 4.9 percent. The gauge known as the VIX fell to its lowest level this year on May 21.

     The S&P 500 delivered its best month since February in a period that has seen the index drop 0.1 percent on average in data going back to 1928, the second-worst performance after September.

     Eight of the index’s main groups advanced, led by gains of at least 2 percent among technology and health-care shares.

     Tech was at the center of record acquisition activity, according to data compiled by Bloomberg. Broadcom Corp. rallied 29 percent, the most in the S&P 500, after agreeing to be bought for $37 billion by chipmaker Avago Technologies Ltd. Altera Corp. soared 17 percent on reports it is close to being purchased by Intel Corp. for about $15 billion.

     Time Warner Cable Inc. jumped 16 percent after Charter Communications Inc. struck a $79 billion deal to buy the company.

     Transportation companies dropped the most of 24 industry groups in the S&P 500 Index this month as airlines entered a bear market and railroads fell. The Dow Jones Transportation Average lost 3.4 percent to end the month at the lowest level since October.

 

Have a wonderful weekend everyone!

Be magnificent!

 

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

As ever,

 

Karen

 

“Challenges are what make life interesting and overcoming them is what makes life meaningful.” – Joshua J. Marine

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

South American tapir Ivana walks with her newly born son at their enclosure at the Zoo in Prague, Czech Republic, Thursday. Petr David Josek/AP

Simone Arrigoni of Italy attempts to set an apnea diving record, while being pushed by a dolphin, in Torvaianica near Rome, Italy, Thursday.Tony Gentile/Reuters

Market Closes for May 28^th, 2015

Market Index	Close	Change
Dow Jones	18126.12	-36.87   -0.20%
S&P 500	2120.79	-2.69   -0.13%
NASDAQ	5097.977	-8.617   -0.17%
TSX	15107.00	-3.47
		-0.02%

International Markets

Market Index	Close	Change
NIKKEI	20551.46	+78.88
		+0.39%
HANG SENG	27454.31	-626.90
		-2.23%
SENSEX	27506.71	-57.95
		-0.21%
FTSE 100	7040.92	+7.59
		+0.11%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.673	1.669
CND. 30 Year Bond	2.257	2.250
U.S.    10 Year Bond	2.1355	2.1302
U.S. 30 Year Bond	2.8896	2.8726

Currencies

BOC Close	Today	Previous
Canadian $	0.80421	0.80260
US $	1.24345	1.24595
Euro Rate 1 Euro=		Inverse
Canadian $	1.36118	0.73466
US $	1.09468	0.91351

Commodities

Gold	Close	Previous
London Gold Fix	1185.00	1185.85
Oil	Close	Previous
WTI Crude Future	57.68	57.51

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little-changed, headed for a monthly loss, railways tumbled and investors weighed earnings from the nation’s largest lenders.

     Toronto-Dominion Bank slumped 1.1 percent after net income declined. Canadian Imperial Bank of Commerce added 0.6 percent after raising its dividend. Canadian Pacific Railway Ltd. lost 4.1 percent as North American rail traffic declined.

     The Standard & Poor’s/TSX Composite Index fell 3.49 points, or less than 0.1 percent, to 15,106.98 at 4 p.m. in Toronto, paring an earlier slide of 0.7 percent in afternoon trading. The benchmark Canadian equity gauge has dropped 0.8 percent in May, trimming its gain for the year to 3.2 percent.

     Five of 10 industries in the S&P/TSX slipped on trading volume 16 percent lower than the 30-day average. Industrial companies dropped the most, tumbling 1.7 percent as a group.

     Canadian Pacific Railway sank 4.1 percent, the most since January, and Canadian National Railway Co. declined 1.7 percent. Total rail traffic in North America decreased 3 percent in the week ended May 23, according to a report from Talon Custer and Lee Klaskow, Bloomberg Intelligence analysts.

     Valeant Pharmaceuticals International Inc., the nation’s largest drugmaker, surged as much as 3.4 percent to a market capitalization of C$104.3 billion. That briefly put the company ahead of Toronto-Dominion’s C$104.1 billion valuation and into second place on the TSX.

     The two companies closed at near-identical valuations, with Toronto-Dominion clinging to a C$17 million lead. The lender dropped 1.1 percent after fiscal second-quarter profit fell 6.5 percent as the lender took a C$228 million ($183 million) restructuring charge.

     Royal Bank, the biggest company on the TSX, rose 0.2 percent. The nation’s largest lender said fiscal second-quarter profit rose 14 percent on gains in investment banking. Wealth management earnings fell 3 percent after taking C$29 million of restructuring costs and provisions tied to exiting some international markets.

US

By Jeremy Herron and Stephen Kirkland

     (Bloomberg) — U.S. stocks slipped from near records before data Friday on economic growth, while the dollar ended little changed after a Japanese official warned against the rapid depreciation of the yen. European equities fell as concern mounted that Greece may not reach a deal with creditors.

     The Standard & Poor’s 500 Index lost 0.1 percent at 4 p.m. in New York, trimming a loss of 0.5 percent in afternoon trading. The gauge has advanced 1.7 percent in May. The Bloomberg Dollar Spot Index was little changed, with the greenback near a 12-year high versus the yen. The Stoxx Europe 600 Index dropped 0.5 percent, while the Shanghai Composite Index’s 6.5 percent slide was its worst since January. Natural gas tumbled the most since March.

     The yen’s drop in recent days was “rough,” and the government will continue to carefully monitor movements in the currency, Finance Minister Taro Aso said at a Group of Seven meeting in Dresden. The Bloomberg dollar gauge has rallied 2.8 percent since May 18 on signs the Federal Reserve is preparing to raise interest rates this year. A report Friday may show the U.S. economy contracted in the first quarter.

     “When we take a look at it it’s kind of the same movie we’ve seen over and over again,” Karyn Cavanaugh, the New York- based senior market strategist at Voya Investment Management LLC, said in a phone interview. Voya oversees $215 billion. “We’re worried about what’s going on with the Fed, we’re worried about what’s going on with Greece. Then there’s always the strong dollar.”

     The S&P 500 closed 0.3 percent off its record on Wednesday, rebounding from the biggest drop for U.S. stocks in three weeks after Greece said it was nearing a deal on debt relief.

     The crisis roiled markets again Thursday after French and German delegates at the Group of Seven meeting pushed back against the claims that an agreement was near. The concern that Greece may not win more aid before a loan payment due next week sent European stocks lower.

     “We can expect sentiment to swing back and forth until we really get to crunch time on Greece, and I don’t think we’ll get a deal until the very last day,” Allan von Mehren, chief analyst at Danske Bank A/S, said by phone from Copenhagen. “Markets will be quite volatile as everyone tries to read the signals.”

     Failure to reach a deal may drive yields higher on other euro-area government bonds, the European Central Bank said. The yield on 10-year Greek bonds was little changed, while Spain’s 10-year bond yield rose three basis points to 1.84 percent and Portugal’s climbed five basis points to 2.54 percent.

     The dollar was little changed after rising seven of the previous eight sessions as growing speculation the U.S. will raise interest rates widened the policy divergence with Japan.

     Data Thursday strengthened the case for higher interest rates after economic growth slowed in the first quarter. More Americans than forecast signed contracts to purchase previously owned U.S. homes in April, indicating a pickup in the housing market. The jobless claims report comes as data over the last week from housing starts to leading indicators have topped forecasts.

     Treasury seven-year notes rallied after a $29 billion auction of the securities as investors were attracted by the highest auction yield since December. Ten-year Treasury yields slipped were little changed at 2.13 percent.

     The MSCI Emerging Markets Index lost 0.9 percent, with a fourth day of losses leaving the guage at the lowest level since April 7. Brazil’s equity benchmark declined as lenders slid after data showed faster-than-forecast inflation. Qatar’s benchmark tumbled the most this year as the country’s soccer World Cup plans came under scrutiny.

     A gauge of developing-nation currencies slid for a ninth day, the longest streak of declines in more than two months.

     Oil rose after crude stockpiles dropped a fourth week and gasoline inventories slipped to the lowest level this year. West Texas Intermediate crude added 0.3 percent to settle at $57.68 a barrel in New York, while Brent added 0.8 percent to end at $62.58 a barrel in London.

     U.S. natural gas futures tumbled 5 percent to settle at a four-week low after U.S. inventories rose faster than predicted last week.

  

Have a wonderful evening everyone.

Be magnificent!

 

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

Mahatma Gandhi

As ever,

 

Karen

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”

John Quincy Adams

  

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Britain’s Queen Elizabeth is accompanied by Prince Philip as they proceed through the Royal Gallery before the State Opening of Parliament in the House of Lords, at the Palace of Westminster in London, Wednesday. Geoff Pugh/Reuters

Two snow leopard cubs are presented at the wildlife park Lueneburger Heide, in Nindorf-Hanstedt, Germany, Wednesday. The cubs were born on May 5. Philipp Schulze/dpa/AP

Market Closes for May 27^th, 2015

Market Index	Close	Change
Dow Jones	18162.99	+121.45   +0.67%
S&P 500	2123.49	+19.29   +0.92%
NASDAQ	5106.594	+73.842   +1.47%
TSX	15107.21	+56.40
		+0.37%

International Markets

Market Index	Close	Change
NIKKEI	20472.58	+35.10
		+0.17%
HANG SENG	28081.21	-168.65
		-0.60%
SENSEX	27564.66	+33.25
		+0.12%
FTSE 100	7033.33	+84.34
		+1.21%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.669	1.702
CND. 30 Year Bond	2.250	2.284
U.S.    10 Year Bond	2.1302	2.1355
U.S. 30 Year Bond	2.8726	2.8934

Currencies

BOC Close	Today	Previous
Canadian $	0.80260	0.80436
US $	1.24595	1.24322
Euro Rate 1 Euro=		Inverse
Canadian $	1.35880	0.73594
US $	1.09057	0.91686

Commodities

Gold	Close	Previous
London Gold Fix	1185.85	1185.40
Oil	Close	Previous
WTI Crude Future	57.51	58.03

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, after slumping the most in almost three weeks yesterday, as Air Canada and financial companies advanced while the Bank of Canada kept its key interest rate unchanged for a third meeting.

     Air Canada soared 8 percent after announcing the airliner’s first share buyback program since 2011. Bank of Montreal, Canada’s fourth-largest lender, rose 0.3 percent after adjusted profit topped analysts’ estimates. Legacy Oil + Gas Inc. slumped 8.2 percent after Crescent Point Energy Corp. agreed to buy the company.

     The Standard & Poor’s/TSX Composite Index rose 59.66 points, or 0.4 percent, to 15,110.47 at 4 p.m. in Toronto. The benchmark equity gauge declined 0.9 percent yesterday for a third straight day of losses.

     Eight of 10 industries in the S&P/TSX advanced on trading volume 15 percent lower than the 30-day average today. Financial shares added 0.4 percent, while shares in industrial companies increased 1.4 percent.

     Air Canada surged to the highest level since 2007. The airline opted out of a pension agreement with the federal government that will create potential savings of about C$310 million in the next two years, paving the way for Air Canada to buy back as many as 10 million shares.

     The Bank of Canada maintained its benchmark rate at 0.75 percent and said the economy is recovering from a drop in oil prices. Economists surveyed by Bloomberg unanimously forecast no change to the central bank’s 0.75 percent benchmark rate.

     Bank of Montreal rebounded from an earlier loss as the company raised its dividend 2.5 percent. Net income declined 7.2 percent after taking a restructuring charge of C$106 million to “drive operational efficiencies.”

     Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank report results Thursday, followed by Bank of Nova Scotia on Friday.

     Valeant Pharmaceuticals International Inc. increased 1.9 percent, the fourth gain in five days as the company extends an all-time high.

     Energy shares declined 0.3 percent as oil dropped 52 cents in New York to $57.51 a barrel.

US

By Callie Bost and Joseph Ciolli

     (Bloomberg) — The calmest markets in six months and the best run of economic data this year spelled trouble for U.S. stocks after a three-day break.

     The combination ignited yesterday, with the Standard & Poor’s 500 Index falling more than 1 percent as a benchmark gauge for equity turbulence surged the most since January. The Chicago Board Options Exchange Volatility Index jumped 16 percent to 14.06.

     Options traders were caught leaning the wrong way as speculation the Federal Reserve will raise interest rates shook investors returning from Memorial Day. For the VIX, it was only the second move of more than 15 percent all year — compared with four in December alone.

     “The market was not realizing any significant volatility over the last couple of weeks, particularly to the downside,” said Dan Deming, a managing director at Chicago-based Equity Armor Investments. “Any type of significant selloff was going to have more of a slingshot effect on the VIX.”

     The VIX’s violent reaction may have reflected a repricing in the index after the long weekend, according to Deming. The selloff followed the slowest week this year for domestic equities, which fluctuated in the smallest range in six months over the five days en route to a 0.2 percent gain.

     On Thursday, the VIX closed at its lowest level of 2015 as the S&P 500 reached an all-time high. In the five-day period, the VIX’s closing level averaged 12.54, its lowest for a week since one ending Sept. 5.

     U.S. stocks fell the most in three weeks as comments Friday from Fed Chair Janet Yellen that borrowing costs would be boosted this year were followed by data adding to evidence of a recovery in American economic growth after a first-quarter slowdown.

 

     Reports on Tuesday showed orders for capital equipment in the U.S. rose for a second month, sales of new homes climbed more than forecast and a measure of regional manufacturing exceeded estimates.

     Over the last week, economic data from housing starts to leading indicators have strengthened the case for higher interest rates, beating market forecasts by a large-enough margin to push the Citigroup Economic Surprise Index for the U.S. higher by the fastest rate all year.

     Adding to pressure on equities is anxiety over Europe, where there has been little convergence in talks between Greece and its creditors as time runs out to secure a deal before the country needs to make payments to the International Monetary Fund in early June.

     “There’s been a lot of chatter into the end of the month with the Fed and Greece,” Deming said. “The market kept drifting higher but the feeling was ‘boy, one misstep and this could backfire.’”

     Tuesday’s decline pared the S&P 500’s advance for May to 0.9 percent. The gauge has climbed 2.2 percent this year, while the VIX has dropped 27 percent for 2015.

     Hedging yesterday was concentrated in near-term options. The CBOE S&P 500 Short Term Volatility Index, a measure of nine- day hedging costs on the stocks gauge, soared 39 percent, its biggest daily jump since December. Four of the five most-traded S&P 500 contracts were puts expiring May 29, with strike prices ranging from 2,030 to 2,100.

     The slide in U.S. equities was a godsend for traders in VIX options expecting more turbulence. At the end of last week, they owned about 3.5 contracts wagering on upside in the volatility gauge for every option predicting downside, the highest ratio of calls to puts since October.

     The VIX fell 0.1 percent to 14.04 at 9:43 a.m. in New York as the S&P 500 rose 0.3 percent.

     It was only a matter of time for stocks’ lull to mirror swings seen in other asset classes, according to Jim Strugger at MKM Holdings LLC. While the VIX fell to its lowest level in 2015, gauges of expected volatility in U.S. Treasuries and global currencies remained elevated.

     “U.S. equity market resilience has been surprising to us in recent weeks,” Strugger, a derivatives strategist at MKM in Stamford, Connecticut, wrote in a note Tuesday. The recent rally in U.S. stocks and the slide in the VIX “seemed improbable in the context of sustained elevation in volatility across asset classes and geographies,” he wrote.

  

Have a wonderful evening everyone.

Be magnificent!

 

“Take up one idea. Make that one idea your life–think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success.” Swami Vivekananda

As ever,

 

Karen

“Things work out best for those who make the best of how things work out.” John Wooden

  

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A sparrow tries to drink water from a faucet at a park in Suwon, South Korea, Tuesday. Shin Young-Geun/Yonhap/Reuters

An art student lies on a giant canvas as she paints with her limbs during a demonstration, at an exhibition of art works from the faculty of the Hubei Institute of Fine Arts, in Wuhan, Hubei province, China.

Market Closes for May 26^th, 2015

Market Index	Close	Change
Dow Jones	18041.54	-190.48   -1.04%
S&P 500	2104.20	-21.86   -1.03%
NASDAQ	5032.750	-56.612   -1.11%
TSX	15050.81	-136.59
		-0.90%

International Markets

Market Index	Close	Change
NIKKEI	20437.48	+23.71
		+0.12%
HANG SENG	28249.86	+257.03
		+0.92%
SENSEX	27531.41	-112.47
		-0.41%
FTSE 100	6948.99	-82.73
		-1.18%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.702	1.777
CND. 30 Year Bond	2.284	2.355
U.S.    10 Year Bond	2.1355	2.2092
U.S. 30 Year Bond	2.8934	2.9841

Currencies

BOC Close	Today	Previous
Canadian $	0.80436	0.81233
US $	1.24322	1.23103
Euro Rate 1 Euro=		Inverse
Canadian $	1.35242	0.73941
US $	1.08784	0.91925

Commodities

Gold	Close	Previous
London Gold Fix	1185.40	1204.10
Oil	Close	Previous
WTI Crude Future	58.03	59.02

Market Commentary:

Canada

By Joseph Ciolli

     (Bloomberg) — Canadian stocks declined the most in almost three weeks as raw-material and energy companies dropped with oil and metals prices.

     Kinross Gold Corp. and Goldcorp Inc. dropped more than 3.3 percent to pace declines among raw-material stocks. Gran Tierra Energy Inc. and Precision Drilling Corp. decreased at least 3.9 percent as a stronger dollar pulled crude prices lower.

     The Standard & Poor’s/TSX Composite Index slid 136.59 points, or 0.9 percent, to 15,050.81 at 4 a.m. in Toronto, for the biggest drop since May 6. The gauge added 0.6 percent last week.

     Eight of the 10 main groups in the S&P/TSX slipped. Energy companies decreased 1.2 percent. The S&P/TSX Gold Index dropped 2.8 percent and Brent crude fell 2.7 percent on strength in the dollar amid speculation that the Federal Reserve will raise interest rates this year.

     Crude’s correlation with the dollar became the most pronounced since 2012. The stronger dollar will add to pressure on crude, according to Morgan Stanley. A rising greenback curbs the appeal of raw materials priced in the U.S. currency.

     The dollar rose to an almost eight-year high against the yen as U.S. data from housing to manufacturing beat estimates, boosting the case for higher interest rates.

US

By Jennifer Kaplan

     (Bloomberg) — U.S. stocks fell the most in three weeks, as better-than-forecast economic data and comments by Federal Reserve officials bolstered bets for an interest-rate increase this year.

     Energy and raw-material companies retreated as the dollar jumped, while Apple Inc. and Intel Corp. paced a drop in technology shares. Hewlett-Packard Co. decreased 4 percent, and Google Inc. lost 1.4 percent. Time Warner Cable Inc. added 7.3 percent after Charter Communications Inc. agreed to buy the cable provider for about $55 billion in cash and stock. Cablevision Systems Corp. climbed 3.5 percent.

     The Standard & Poor’s 500 Index declined 1 percent to 2,104.20 at 4 p.m. in New York, after a third straight weekly advance. The Dow Jones Industrial Average sank 190.48 points, or 1 percent, to 18,041.54. The Dow ended a six-session stretch without a 100-point intraday swing, the longest in almost a year. The Nasdaq Composite Index lost 1.1 percent.

     “The looming Fed change is always out there,” said Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion. “You have a couple of items that could be considered good, things are looking better, the dollar is strong, basically it’s working against the market at the moment.”

     Better-than-estimated increases in capital goods orders and new-home sales came after Federal Reserve Chair Janet Yellen indicated the central bank will raise borrowing costs this year if the economy improves as she expects. Fed Bank of Cleveland President Loretta Mester echoed her comments on Monday, saying the U.S. economy is close to the point where it can support higher rates.

     Fed Vice Chairman Stanley Fischer said central bankers are weighing the risk of raising them prematurely against the danger of having to play catch-up if they wait too long. He also said policy makers will consider global growth as they begin to raise interest rates, and they could increase them more gradually should the world economy falter.

     Economists expect the Fed to increase rates in September, according to a Bloomberg survey. Purchases of new homes rose more than projected in April, and a separate report showed home prices increased at a faster pace than forecast in the year through March. A gauge on May consumer confidence also advanced more than estimated.

     “The market is kind of striking this in-between, wanting better economic data but then the flip side meaning the Fed is that much sooner to raising rates,” said Walter Todd, who oversees about $1 billion as chief investment officer for Greenwood, South Carolina-based Greenwood Capital. “I’m fine with that, with seeing better economic data and dealing with the implications.”

     While U.S. stocks had their slowest week of trading since New Year’s and the tightest range for equities in six months, the S&P 500 reached a fresh record on May 21. The index climbed 0.2 percent last week to mark its longest weekly winning streak since February. Equity markets were closed on Monday for the Memorial Day holiday.

     The Chicago Board Options Exchange Volatility Index jumped 16 percent to 14.06 Tuesday, the most since January. The gauge, known as the VIX, closed Friday with its second straight weekly decline.

     All 10 main groups in the S&P 500 fell, with energy, raw materials and technology shares losing more than 1.2 percent. All 30 Dow components dropped. About 6.4 billion shares changed hands on U.S. exchanges, 1 percent below the three-month average.

     First Solar Inc. slumped 7.3 percent, the most in six months, after the solar module maker was cut to the equivalent of a sell by RBC Capital Markets. Apple, H-P and Juniper Networks Inc. all fell at least 2.2 percent as tech companies in the benchmark index retreated 1.4 percent.

     Tech hardware and equipment companies lost 1.9 percent, the most of 24 industry groups in the S&P 500. Hewlett-Packard Co. led the decline, down 4 percent, the most in three months. Seagate Technology Plc and Juniper Networks Inc. dropped 2.2 percent.

     Steel producer Allegheny Technologies Inc. and miner Freeport McMoRan Inc. retreated at least 3.6 percent as raw- material companies fell 1.2 percent, the most in two months. A Bloomberg measure on the dollar reached its highest level in a month, curbing the appeal of commodities priced in the U.S. currency.

     Chevron Corp. and ConocoPhillips lost more than 1.5 percent to weigh on the energy group as oil sank. Energy companies fell the most of 10 industry groups in the S&P. Transocean Ltd. and Diamond Offshore Drilling Inc. decreased at least 4.1 percent as energy shares in the benchmark hit their lowest level in seven weeks.

     Coal stocks were among the biggest losers after the protracted slump in demand for the fossil fuel led to a rash of layoffs last week. Alpha Natural Resources Inc. fell 8.2 percent to a record low after announcing plans Friday to idle a West Virginia mine and fire 439 workers. Peabody Energy Corp. also dropped to an all-time low, down 6.1 percent, while Consol Energy Inc. lost 5.7 percent.

     The Bloomberg U.S. Airlines Index tumbled for a fifth straight day Tuesday amid concerns that carriers are losing power to raise fares even as oil prices rise. Hawaiian Holdings Inc, JetBlue Airways Corp. and Spirit Airlines Inc. slipped at least 3.8 percent.

     Genworth Financial Inc. and Lincoln National Corp. slid more than 2.4 percent as financial companies in the S&P 500 fell for a fourth session, the longest streak in two months.

Principal Financial Group declined 1.8 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“One of the most beautiful qualities of true friendship is to understand and to be understood.” Lucius Annaeus Seneca

As ever,

 

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

 

 

Karen

 

 

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 WEEKEND

A newborn Asian elephant gets help standing up from his mother, Farina, at Pairi Daiza wildlife park, a zoo and botanical garden in Brugelette, Belgium, Monday. Francois Lenoir/Reuters

Rowers arrive in the Grand Canal to take part in the Vogalonga, or Long Row, in the Venice lagoon in Italy Sunday. The annual boating event features a 30 km (18.6 mile) course starting at St. Mark’s Square. Manuel Silvestri/Reuters

Market Closes for May 25^th, 2015

Market Index	Close	Change
Dow Jones	18232.02	Closed
S&P 500	2126.06	Closed
NASDAQ	5089.362	Closed
TSX	15192.14	-8.62
		-0.06%

International Markets

Market Index	Close	Change
NIKKEI	20413.77	+149.36
		+0.74%
HANG SENG	27992.83	+469.11
		+1.70%
SENSEX	27643.88	-313.62
		-1.12%
FTSE 100	7031.72	+18.25
		+0.26%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.777	1.772
CND. 30 Year Bond	2.355	2.355
U.S.    10 Year Bond	2.2092	2.2092
U.S. 30 Year Bond	2.9841	2.9841

Currencies

BOC Close	Today	Previous
Canadian $	0.81233	0.81329
US $	1.23103	1.22957
Euro Rate 1 Euro=		Inverse
Canadian $	1.35166	0.73983
US $	1.09799	0.91076

Commodities

Gold	Close	Previous
London Gold Fix	1204.10	1204.10
Oil	Close	Previous
WTI Crude Future	59.02	59.02

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks were little-changed for a second session as energy and raw-materials producers retreated, while health-care stocks rose, in a day when public holidays in the U.S. and much of Europe reduced trading.

     Bellatrix Exploration Ltd. and RMP Energy Inc. dropped at least 2.4 percent to pace declines among energy stocks. BlackBerry Ltd. lost 0.5 percent after cutting jobs at offices around the world to consolidate its shrinking smartphone business. Valeant Pharmaceuticals International Inc., the nation’s largest drugmaker, added 0.3 percent.

     The Standard & Poor’s/TSX Composite Index fell 13.36 points, or 0.1 percent, to 15,187.40 at 4 p.m. in Toronto. U.S. markets are closed today for the Memorial Day holiday.

     Enbridge Inc. lost 2.1 percent as energy producers retreated 0.7 percent as a group. Four of 10 industries in the S&P/TSX fell on trading volume 78 percent lower than the 30-day average today.

     West Texas Intermediate oil was little changed, up 10 cents to $59.82 in New York at the 1 p.m. close of electronic trading. There was no floor session at the exchange on Monday because of the Memorial Day holiday, and transactions will be booked Tuesday for settlement purposes.

     Barrick Gold Corp. added 0.1 percent after Evolution Mining Ltd. agreed to pay $550 million for the gold producer’s Cowal gold mine in Australia.

     Centerra Gold Inc. and First Majestic Silver Corp. declined at least 2.3 percent as raw-materials producers dropped 0.3 percent as a group.

     BlackBerry fell after announcing late Friday it was making an unspecified number of cutbacks in its device software, hardware and applications business. The company employed 7,000 people as of September 2014.

US

Market are closed today for Memorial Day.

 

Have a wonderful evening everyone.

 

Be magnificent!

“Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” Barack Obama

As ever,

 

“We shall never know all the good that a simple smile can do.” Mother Teresa

 

 

Karen

 

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Van Morrison Shines Again

There has never been much clamor for loner and curmudgeon Van Morrison to make a duets album, but he did and – surprise – it’s his best album in decades.  On Duets: Reworking the Catalogue, Van the Man sounds inspired by the material and invigorated by the company he keeps.  The variety of voices is a timbre-filled treat.  Among the guests are Michael Bublé, Mavis Staples, Stevie Winwood, and Mark Knopfler.  –review from CSM.    It is really terrific!

PHOTOS OF THE DAY

A villager paints his face during the annual ‘Lok Ta Pring Ka-Ek’ religious ceremony, on the outskirts of Phnom Penh, Cambodia. Hundreds of villagers participate in the procession, which ends at a shrine where they would ask for good fortune and rain. Samrang Pring/Reuters

Workers gather rose petals on a rose field near the village of Pevtsite, Bulgaria. Bulgaria is one of the world’s leading producers of rose oil, a key ingredient in perfumes. Stoyan Nenov/Reuters

Market Closes for May 22^nd, 2015

Market Index	Close	Change
Dow Jones	18233.15	-52.59
		-0.29%
S&P 500	2128.91	-1.91   -0.09%
NASDAQ	5089.363	-1.431   -0.03%
TSX	15205.61	+2.00
		+0.01%

International Markets

Market Index	Close	Change
NIKKEI	20264.41	+61.54
		+0.30%
HANG SENG	27992.83	+469.11
		+1.70%
SENSEX	27957.50	+148.15
		+0.53%
FTSE 100	7031.72	+18.25
		+0.26%

Bonds

 

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.772	1.749
CND. 30 Year Bond	2.355	2.347
U.S.    10 Year Bond	2.2092	2.1933
U.S. 30 Year Bond	2.9841	2.9920

Currencies

BOC Close	Today	Previous
Canadian $	0.81329	0.81975
US $	1.22957	1.21988
Euro Rate 1 Euro=		Inverse
Canadian $	1.35404	0.73853
US $	1.10123	0.90808

Commodities

Gold	Close	Previous
London Gold Fix	1204.10	1205.00
Oil	Close	Previous
WTI Crude Future	59.02	59.97

Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. – Niall Ferguson.

Market Commentary:

Canada

By Joseph Ciolli

     (Bloomberg) — Canadian stocks closed little changed as gains in health-care shares offset a drop among the consumer staples and energy sectors.

     Valeant Pharmaceuticals International Inc. gained 2.3 percent to a record. Metro Inc. slid 1 percent to send consumer shares lower as April inflation was the slowest since 2013. Ensign Energy Services Inc. and Precision Drilling Corp. dropped more than 2.7 percent amid a decline in crude oil.

     The Standard & Poor’s/TSX Composite Index decreased 2.85 points, or less than 0.1 percent, to 15,200.76 at 4 p.m. in Toronto, trimming its advance in the holiday-shortened week to 0.6 percent.

     Canada’s inflation rate last month was the slowest since October 2013, falling below the central bank’s target band on a drop in energy costs.

     Four of the 10 main groups in the S&P/TSX retreated. Financial companies, which account for about one-third of the index by weighting, fell 0.3 percent.

     Materials companies in the S&P/TSX rose for the first time in four days as Western Forest Products Inc. and Primero Mining Corp. added more than 3.1 percent. The S&P/TSX Gold Index added 0.1 percent, paring its weekly loss to 2.4 percent.

     Energy producers lost 0.3 percent. Pacific Rubiales Energy Corp. decreased 3 percent, while RMP Energy Inc. slipped 2.6 percent.

US

By Joseph Ciolli and Oliver Renick

     (Bloomberg) — U.S. stocks fell after data showed inflation firming, and Federal Reserve Chair Janet Yellen said she expects to raise interest rates this year, though the pace of further increases will be gradual.

     Airline shares dropped, and Boeing Co. lost 1.7 percent. Energy companies retreated with the price of oil, and a stronger dollar weighed on consumer staples. Hewlett-Packard Co. added 2.8 percent after its results exceeded forecasts. Intuit Inc. climbed 2.5 percent as quarterly sales beat estimates. Deere & Co. advanced 4.4 percent after raising its 2015 profit forecast.

     The Standard & Poor’s 500 Index slipped 0.2 percent amid a late selloff to 2,126.06 at 4 p.m. in New York, after closing Thursday at a record. The Dow Jones Industrial Average fell 53.72 points, or 0.3 percent, to 18,232.02. The Nasdaq Composite Index lost less than 0.1 percent after topping its record close in the final hour. The markets are closed Monday for the Memorial Day holiday.

     “Any time you do get a little bit stronger data, people kind of flinch,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts. “Their first reaction is that the Fed is getting what it wants to raise rates. The stock market is at new highs and a little overbought on a near-term basis, and people are taking some chips off the table ahead of the long weekend.”

     Yellen expects to raise interest rates this year if the economy meets her forecasts, with a gradual pace of tightening to follow. While the labor market is nearing full strength, “we are not there yet,” she said Friday in a speech in Providence, Rhode Island.

     Delaying first rate increase until employment and inflation return to the Fed’s objectives “would risk overheating the economy,” Yellen said.

     A report Friday showed the cost of living excluding food and fuel rose at a faster pace than expected in April, indicating inflation is inching toward the Fed’s goal. The core consumer-price index climbed 0.3 percent, the biggest gain since January 2013. Recent mixed economic reports had prompted investors to push back estimates for when the Fed will begin raising rates, helping to drive equities to all-time highs.

     Data Thursday showed sales of existing homes in April unexpectedly dropped, after the March pace was the strongest in almost two years. A series of factory reports yesterday indicated the industry remains tepid this month against a backdrop of weaker global growth and a strong dollar.

     Most Fed officials have said they are likely to raise rates this year, though they haven’t specified precisely when. Economists expect an increase in September, according to a Bloomberg survey.

     How markets react when they do finally tighten is a source of concern for Fed officials, who have kept the benchmark federal funds rate near zero since December 2008. Chair Yellen and her colleagues are fretting that bond yields near record lows could surge once the Fed starts raising rates, according to minutes of their April meeting released this week.

     Higher costs of everything from mortgages to car loans could result, potentially putting the fragile economic recovery at risk.

     The S&P 500 posted a third consecutive weekly gain, the longest streak since February. The index yesterday snapped a two-day losing streak after three successive sessions of all- time highs. The Dow reached a record Wednesday, topping its previous closing high set on March 2.

     The Chicago Board Options Exchange Volatility Index rose 0.2 percent to 12.13, after falling Thursday to a 2015 low. The gauge, known as the VIX, closed with its second straight weekly decline. About 4.9 billion shares changed hands on U.S. exchanges, 23 percent below the three-month average.

     Transportation shares resumed their slide after bouncing Thursday from their worst drop in two months. Kansas City Southern and Delta Air Lines Inc. fell at least 1.3 percent. The Dow Jones Transportation Average sank 0.8 percent.

     Energy companies declined along with oil as the dollar gained for the fourth time in five days, reducing the appeal of commodities priced in the U.S. currency. Hess Corp. and Oneok Inc. dropped at least 1.3 percent.

     The dollar also weighed on consumer staples shares as the stronger U.S. currency can dent profits from overseas business. Tyson Foods Inc. and Philip Morris International Inc. lost more than 1.1 percent.

     “Any time you do get a little bit stronger data, people kind of flinch,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts. “Their first reaction is that the Fed is getting what it wants to raise rates. The stock market is at new highs and a little overbought on a near-term basis, and people are taking some chips off the table ahead of the long weekend.”

     Quest Diagnostics Inc. climbed 7.7 percent, and soared as much as 20 percent, after a Twitter post that was intended to convey a “market rumor” that the company was weighing a sale. Shares reached an all-time high.

     Deere rose 4.4 percent, the most in more than three years, after its better-than-expected forecast for fiscal 2015, as demand for its construction equipment mitigated the impact of declining sales of its signature green tractors and combines.

     Hewlett-Packard advanced 2.8 percent, the most since February, after reporting quarterly profit that exceeded analysts’ estimates as corporate spending on servers picked up ahead of the computer maker’s planned separation into two companies.

     Expedia Inc. reached a record, rising 6.7 percent for the fifth straight gain and the longest streak since January. The company said Friday it sold a 62.4 percent majority stake in eLong Inc. for about $671 million.

     Intuit Inc. jumped 2.5 percent to an all-time high after the TurboTax software maker reported revenue that exceeded analysts’ estimates for its most important quarter.

     NetApp Inc. rebounded to lead gains in the technology group, along with H-P and Intuit. The data management company rallied 4.3 percent after its worst drop in three years Thursday, sparked by a cut in its full-year outlook.

 

Have a wonderful weekend everyone.

 

Be magnificent!

To live completely, fully, in the moment is to live with what is, the actual, without any sense of condemnation

or justification – then you understand it so totally that you are finished with it.

When you see clearly the problem is solved.

Krishnamurti

As ever,

 

Carolann

 

Life is something that happens when you can’t get to sleep.

                                               -Fran Lebowitz, 1950-

 

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