Category: Events

Dear Friends,

Tangents:

On this date in 2008, Lehman Brothers filed for bankruptcy protection, Merrill Lynch sold itself to Bank of America and AIG was on the verge of collapse before being rescued by the U.S. government.-Steven Russolillo, WSJ.  And so began the great global financial crises of 2008-2009.

1971- Greenpeace founded.

1940 – Battle of Britain.

We had a nice stroll through VanDusen Botanical Garden in Vancouver yesterday.  It doesn’t matter how many times I go, I still come away having seen something new and feeling awed by the beauty of nature.   With all the beautiful weather we’ve been having, the rose garden is just as beautiful as ever.  There is a sculpture exhibit on until September 30^th, entitled Touch Wood.  Two dozen wood sculptures by B.C. artist such as Brent Comber, Michael Dennis and Martha Varcoe Sturdy are featured,  offering another reason to visit this great outdoor space.

PHOTOS OF THE DAY

The Marseille’s Major cathedral is seen through the sculpture ‘Poseidon’ by French visual artist Sacha Sosno installed in front of the ‘Regards de Provence’ museum in Marseille. Jean-Paul Pelissier/Reuters

A fishing boat sails along the shore on the Isle of Lewis, in the Outer Hebrides of Scotland. The referendum on Scottish independence will take place on September 18, when Scotland will vote whether or not to end the 307-year-old union with the rest of the United Kingdom. Cathal McNaughton/Reuters

Market Closes for September 15^th, 2014    

Market Index	Close	Change
Dow Jones	17031.14	+43.63
		+0.26%
S&P 500	1984.13	-1.41   -0.07%
NASDAQ	4518.902	-48.696   -1.07%
TSX	15482.56	-49.02
		-0.32%

International Markets

Market Index	Close	Change
NIKKEI	15948.29	+39.09
		+0.25%
HANG SENG	24356.99	-238.33
		-0.97%
SENSEX	26816.56	-244.48
		-0.90%
FTSE 100	6804.21	-2.75
		-0.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.235	2.240
CND. 30 Year Bond	2.758	2.759
U.S.    10 Year Bond	2.5869	2.6087
U.S. 30 Year Bond	3.3382	3.3416

Currencies

BOC Close	Today	Previous
Canadian $	0.90517	0.90156
US $	1.10476	1.10918
Euro Rate 1 Euro=		Inverse
Canadian $	1.42952	0.69954
US $	1.29396	0.77282

Commodities

Gold	Close	Previous
London Gold Fix	1234.00	1229.94
Oil	Close	Previous
WTI Crude Future	92.92	92.27

Market Commentary:

Canada

By Eric Lam

     Sept. 15 (Bloomberg) — Canadian stocks fell a second day as commodity producers dropped on signs demand growth is weakening in China, the biggest consumer of energy and metals.

     Magna International Inc. and Linamar Corp., auto parts manufacturers, slumped more than 1.7 percent. TransCanada Corp. declined 1 percent after analysts at Goldman Sachs Group Inc. lowered their rating for the stock to a sell. Raging River Exploration Inc. and Shawcor Ltd. dropped more than 3.3 percent as oil producers retreated. Semafo Inc. slumped 5.4 percent to pace declines among materials producers.

     The Standard & Poor’s/TSX Composite Index fell 49.02 points, or 0.3 percent, to 15,482.56 at 4 p.m. in Toronto. The gauge has fallen 1.1 percent since closing Sept. 3 at a record. It has advanced 14 percent this year, the second-best performer among the world’s developed markets behind Denmark.

     Data last weekend showed China’s industrial output rose at the slowest pace outside the Lunar New Year holiday period of January and February since the 2008 global financial crisis.

     First Quantum Minerals Ltd. retreated 4 percent to C$23.16 and Teck Resources Ltd. lost 1.5 percent to C$23.34 as copper for December delivery retreated in New York.

     Raw-materials stocks slumped 0.5 percent as a group, third- most in the S&P/TSX. Nine of 10 industries declined on trading volume in line with the 30-day average today.

US

By Lu Wang and Joseph Ciolli

     Sept. 15 (Bloomberg) — Beneath the U.S. stock market’s record-setting gains, trouble is stirring.

     About 47 percent of stocks in the Nasdaq Composite Index are down at least 20 percent from their peak in the last 12 months while more than 40 percent have fallen that much in the Russell 2000 Index and the Bloomberg IPO Index. That contrasts with the Standard & Poor’s 500 Index, which has closed at new highs 33 times in 2014 and where less than 6 percent of companies are in bear markets, data compiled by Bloomberg show.

     The divergence shows the appetite for risk is narrowing as the Federal Reserve reins in economic stimulus after a five-year rally that added almost $16 trillion to equity values. It’s been three years since investors saw a 10 percent decline in the S&P 500 and they’re starting to avoid companies that will suffer the most when the market stumbles, said Skip Aylesworth, a portfolio manager for Hennessy Funds in Boston.

     “The small caps have had big runs and tend to get ahead of themselves,” Aylesworth said in a Sept. 10 phone interview. Hennessy Funds oversees about $5 billion. “It’s kind of like the tortoise and the hare, and they’re the hare. But then they get expensive, and when the market corrects, they get whacked.”

     The proportion of technology companies, small-caps and newly listed stocks stuck in their own personal bear markets has risen from 30 percent in March 2013, when the overall equity market surpassed its 2007 record. S&P 500 stocks with at least 20 percent losses have fallen since then, the data show.

     Risk tolerance is declining just before Alibaba Group Holding Ltd. and its shareholders plan to sell as much as $21.1 billion of shares in what will be the biggest ever U.S. initial public offering. The price implies a $163 billion valuation, making it the third-most valuable Internet company traded in the U.S., after Google Inc. and Facebook Inc.

     “How Alibaba performs will really give us an indication to the health of the market,” Malcolm Polley, who oversees $1.2 billion as president and chief investment officer at Stewart Capital Advisors LLC in Indiana, Pennsylvania, said by phone on Sept. 9. “Right now, bigger companies seem to do better. Large tech names tend to perform very well,” he said. “The bull market itself is getting rather long in the tooth. It needs to rest.”                       

     The S&P 500 ended a five-week winning streak on Sept. 12, capping a five-day decline of 1.1 percent on concern the Fed may raise interest rates sooner than anticipated. The index slipped 0.1 percent at 4 p.m. today, while the Russell 2000 lost 1.2 percent and the IPO index dropped 1.5 percent.

     While rallies in Apple Inc. and Microsoft Corp. have lifted the Nasdaq Composite up about 8 percent this year, 47 percent of the measure’s stocks are in bear markets, data compiled by Bloomberg show. FireEye Inc., an online security company, sandwich seller Potbelly Corp. and World Wrestling Entertainment Inc. have tumbled more than 50 percent from their 52-week highs.

     “A lot of stocks have actually made significant declines,” David James, director of research at Alpha, Ohio- based James Investment Research Inc., which oversees more than $5 billion, said by phone on Sept. 9. “Most people see the record highs on the S&P 500 and that makes them feel like, ‘Oh, the market is doing just fine,’’ without recognizing that most stocks really are not participating to that degree.”                           

     Stocks with weak or no earnings and fewer shares to trade fare worse during market turmoil, said Brad Thompson, director of research at Frost Investment Advisors LLC in San Antonio, Texas. More than 20 percent of companies in the Nasdaq Composite and Russell 2000 will be unprofitable this quarter, according to data compiled by Bloomberg of companies with analysts’ forecasts. Only 15 companies in the S&P 500 reported a loss for the past year.

     “There is a sense of ‘Well, we’ve had a lot of liquidity, we’ve had low rates,” and “once the punch bowl is taken away, the market is going to fall,’” Thompson, who helps oversee $10 billion at Frost Investment, said in a phone interview on Sept.10. “I’m not in that camp, but that’s one narrative that’s been played out.”

     Low volatility across financial markets may signal investors are underestimating how quickly the central bank will raise interest rates, researchers at the San Francisco Fed said in a report last week. Bond-market indicators for long-term inflation, growth and funding costs are all lower now than they were at the end of the central bank’s first two rounds of quantitative easing.

     Fed officials in their June economic forecasts predicted their target interest rate will be 1.13 percent at the end of 2015 and 2.5 percent a year later. They are set to release updated projections Sept. 17.

     Dan Miller, director of equities at GW&K Investment Management in Boston, said he’s not worried about losses in some parts of the market because overall U.S. stocks are still one of the best investments. The weak performance in small caps in 2014 isn’t that bad after they surged almost 60 percent over the previous two years, he said.

     “With interest rates so low and our economy in good shape, that should continue to push the stock market higher,” Miller, who helps oversee more than $20 billion, said in a phone interview on Sept. 11.                       

     At the last market peak, losses across small-cap stocks, IPOs and technology companies were as widespread as they are today. About 45 percent of the shares were down at least 20 percent from a 52-week high in October 2007, data compiled by Bloomberg show. That compares with 18 percent for the S&P 500.

     In the current bull market, speculative stocks have still delivered better returns to investors. The Russell 2000 and Nasdaq Composite are up 250 percent on average since March 2009, compared with 193 percent for the S&P 500. The IPO index has posted a smaller gain at 157 percent.

     The stronger performance has led to higher valuations.  Excluding unprofitable companies, the small-cap gauge trades at 20.5 times earnings. That compared with a multiple of 17.9 for the S&P 500, data compiled by Bloomberg show.

     “The performance divergence is a valuation story,” Oliver Pursche, the Suffern, New York-based president of Gary Goldberg Financial Services, said by phone on Sept. 10. “As investors continue to be nervous about a correction, they’ll be more likely to sell off what they perceive to be riskier asset classes.”
 

Have a wonderful evening everyone.

 

Be magnificent!

Propaganda can never tell the truth; truth can never be propagated.

 

Krishnamurti

 

As ever,

 

Carolann

 

To be prepared is half the victory.

        -Miguel de Cervantes, 1547-1616

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

All this discussion on Scotland, independence, makes me reminisce ….about high school English class:

Quarrels unjust against the good and loyal
Destroying them for wealth.

MACDUFF                             This avarice
Sticks deeper, grows with more pernicious root
Than summer-seeming lust; and it hath been
The sword of our slain kings; yet do not fear,
Scotland hath foisons to fill up your will
Of your mere own.  All these are portable,
With other graces weighed.

MALCOLM
But I have none.  The king-becoming graces,
As justice, verity, temp’rance, stableness,
Bounty, perseverance, mercy, lowliness
Devotion, patience, courage, fortitude,
I have no relish of them, but abound
In the division of each several crime,
Acting it many ways.  Nay, had I power, I should
Pour the sweet milk of concord into Hell,
Uproar the universal peace, confound
All unity on earth.

MACDUFF             O Scotland, Scotland.

MALCOLM
If such a one be fit to govern, speak:
I am as I have spoken.

MACDUFF               Fit to govern?
No, not to live.   O nation miserable!
With an untitled tyrant, bloody-sceptered,
When shalt thou see thy wholesome days again?
Since that the truest issue of thy throne
By his own interdiction stands accused,
And does blaspheme his breed?  Thy royal father
Was a most sainted king;  the queen that bore thee,
Oft’ner upon her knees than on her feet,
Died every day she lived.  Fare thee well,
These evils thou repeat’st upon thyself
Hath banished me from Scotland.  O my breast,
Thy hope ends here.

                              -Macbeth, Act 4, Scene 3.

PHOTOS OF THE DAY

An employee at Harris Tweed Hebrides works in the factory on the Isle of Lewis in the Outer Hebrides. The referendum on Scottish independence will take place on September 18, when Scotland will vote whether or not to end the 307-year-old union with the rest of the United Kingdom. Cathal McNaughton/Reuters

 

People wave ‘estelada’ flags, that symbolize Catalonia’s independence, during a demonstration calling for the independence of Catalonia in Barcelona, Spain. A week before Scotland votes on whether to break away from the United Kingdom, separatists in northeastern Spain were trying to convince hundreds of thousands to protest across Catalonia to demand a secession sentiment vote that the central government in Madrid insists would be illegal. Manu Fernandez/AP

Market Closes for September 12^th, 2014    

Market Index	Close	Change
Dow Jones	16987.51	-61.49
		-0.36%
S&P 500	1985.47	-11.98   -0.60%
NASDAQ	4567.598	-24.208   -0.53%
TSX	15528.04	-6.28
		-0.04%

International Markets

Market Index	Close	Change
NIKKEI	15948.29	+39.09
		+0.25%
HANG SENG	24595.32	-67.32
		-0.27%
SENSEX	27061.04	+65.17
		+0.24%
FTSE 100	6806.96	+7.34
		+0.11%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.240	2.196
CND. 30 Year Bond	2.759	2.717
U.S.    10 Year Bond	2.6087	2.5487
U.S. 30 Year Bond	3.3416	3.2756

Currencies

BOC Close	Today	Previous
Canadian $	0.90156	0.90607
US $	1.10918	1.10367
Euro Rate 1 Euro=		Inverse
Canadian $	1.43787	0.69547
US $	1.29633	0.77141

Commodities

Gold	Close	Previous
London Gold Fix	1229.94	1241.58
Oil	Close	Previous
WTI Crude Future	92.27	92.83

Market Commentary:

Canada

By Eric Lam

     Sept. 12 (Bloomberg) — Canadian stocks closed little changed, capping a second straight weekly loss, as gains in consumer and financial shares offset a drop in gold and oil producers.

     Maple Leaf Foods Inc. and Metro Inc. paced an advance in consumer-staples companies. Talisman Energy Inc. and Gibson Energy Inc. sank at least 1.8 percent as crude tumbled to the lowest in more than two years. Alamos Gold Inc. and Alacer Gold Corp. dropped more than 2.5 percent as the metal’s price slid to an eight-month low.

     The Standard & Poor’s/TSX Composite Index fell 2.74 points, or less than 0.1 percent, to 15,531.58 at 4 p.m. in Toronto. The benchmark equity gauge slipped 0.3 percent this week. It closed Sept. 3 at a record 15,657.63.

     The S&P/TSX has advanced 14 percent this year, the second- best performer among the world’s developed markets behind Denmark.

     Financial shares added 0.3 percent as a group. Home prices in Canada rose 5 percent in August from year-ago figures, according to the Teranet-National Bank National Composite House Price Index.

     The nation’s ratio of household debt to disposable income rose to 163.6 percent of disposable income in the second quarter, approaching a record high from a revised 163.1 percent in the previous period. The measure reached a record 164.1 percent in the third quarter last year as mortgages have grown.

     OceanaGold Corp. jumped 3.1 percent to C$2.70. The company yesterday brought forward the start date for underground development of its Didipio gold and copper mine by one year to the first quarter of 2015 after an optimization study. The mine is located in the Philippines.

US

By Callie Bost and Namitha Jagadeesh

     Sept. 12 (Bloomberg) — U.S. stocks fell, giving the Standard & Poor’s 500 Index its first weekly drop in more than a month, as investors speculated the Federal Reserve may raise interest rates sooner than estimated after retail sales climbed at the fastest pace in four months.

     Energy shares in the S&P 500 fell 1.5 percent, extending losses for the week to 3.7 percent. Caterpillar Inc. lost 0.5 percent for its sixth straight decline. Yahoo! Inc. rose 3.9 percent to an eight-year high as Alibaba Group Holding Ltd. prepared for an initial public offering. Conversant Inc. surged 30 percent after Alliance Data Systems Corp. agreed to buy it.

     The S&P 500 fell 0.6 percent to 1,985.54 at 4 p.m. in New York, capping a 1.1 percent slide this week. The Dow Jones Industrial Average slid 61.49 points, or 0.4 percent, to 16,987.51. The Russell 2000 Index dropped 1 percent. About 6 billion shares changed hands on U.S. exchanges, 7.7 percent above the three-month average.

     “Today’s retail sales and consumer confidence data fall into the argument of those who believe the Fed lift-off date may come sooner,” Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, which oversees $67 billion in assets, said by phone. “The worry is if the Fed has to lift rates sooner rather than later, there’s the question of when, but also what the trajectory of interest-rate increases will be and if it will undermine this sanguine picture of equities as the only game in town.”

     The 0.6 percent gain in retail sales matched the median forecast of 82 economists surveyed by Bloomberg and followed a 0.3 percent increase the prior month that was stronger than previously reported, Commerce Department figures showed today in Washington. Eleven of 13 major categories showed advances, led by auto dealers and building material stores.

     The Thomson Reuters/University of Michigan preliminary consumer sentiment index rose to 84.6 in September from 82.5 the month before. The median estimate in a Bloomberg survey of economists projected an increase to 83.3.

     The Fed is assessing the strength of the economy as it winds down a bond-buying program and considers raising rates. The central bank, which meets Sept. 16-17, has said that its benchmark rate will stay low for a “considerable time” after it completes the monthly bond purchases.

     The S&P 500 decline this week on concern the Fed may raise interest rates sooner than forecast. The index closed at a record on Sept. 5, after rallying for five straight weeks, the longest winning streak this year. The gauge hasn’t posted a four-day string of losses in all of 2014, and the last time it fell more than 10 percent was three years ago.

     The benchmark gauge is trading at 16.6 times the projected earnings of its members, near the 16.8 multiple reached on Sept. 5 that was the highest valuation since the end of 2009, according to data compiled by Bloomberg.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options known as the VIX, increased 3.9 percent to 13.31. The volatility measure jumped 10 percent this week, its biggest gain since Aug. 1.

     All of the 10 main industries in the S&P 500 declined today. Energy shares tumbled 1.5 percent, extending a decline this week to 3.7 percent as crude prices have fallen on concern that global oil demand is slowing. Utility shares slid 1.8 percent as a group.

     Caterpillar slumped 0.5 percent to $105.02. Bank of America earlier this week lowered its rating on the shares to neutral from buy. The shares have lost 3.5 percent since Sept. 4.

     Yahoo rose 3.9 percent to $42.88, the highest level since January 2006. Alibaba received enough demand for its IPO that it plans to stop taking orders, according to people with knowledge of the matter. Yahoo is set to get an $8 billion windfall from the IPO. Alibaba plans to set a final price for the shares on Sept. 18, with trading to begin the next day.

     Conversant, which helps companies target users with Internet advertisements based on their previous online searches, soared 30 percent to $34.80, the highest since 2007. Alliance Data agreed to buy the company for $2.3 billion, or $35 a share, according to a statement.

     Ulta Salon Cosmetics & Fragrance Inc. jumped 18 percent to $114.89 after forecasting third-quarter revenue of as much as $736 million, exceeding the $718 million average analyst estimate in a Bloomberg survey.

 

Have a wonderful weekend everyone.
 

 

Be magnificent!

The supreme consideration if man.

Mahatma Gandhi

As ever,

 

Carolann

 

The truth is always the strongest argument.

                   -Sophocles, 496-405(6?) BC

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On the 13-year anniversary of 9/11, here’s a look at WSJ’s front page the day after the terrorist attacks. The Journal’s offices were across from the towers at the time, and this paper and subsequent ones were produced at backup facilities in New Jersey.

Sukhdev Sandhu writes about the World Trade Center attack on September 11, 2001:

At first I’m sure it’s going to be a great day.  Sun out.  Bright blue skies.  The end of summer.  Even the sirens and engines that have been wailing outside my apartment window for the last hour don’t seem that unusual.  Just, I assume, part of the hysteric clangour taken for granted by those who live in Manhattan.  Only when I step out onto First Avenue to head downtown do things begin to seem strange.  Hundreds of people are heading in my direction.  Some are running.  Mums are clutching young kids and looking over their shoulders fearfully.  No cars or cabs, but police are everywhere.  In the distance I see a huge black blob disfiguring the sky.  Maybe a thunderstorm’s brewing?  I step in front of a fleeing office worker:  “Excuse me, but has something happened?”  His answer comes out barely comprehensible comic-book babble:  “The World Trade Center has been hit – it was a plane – enemies – terrorists – hijacker – the Pentagon too – the White House – Pittsburgh.”

By the time I reached my department at NYU everyone is ripped with panic…We yell out the names of people we knew who work at the Twin Towers and rummage around in drawers and diaries looking for their cellphone numbers, which we dial frantically, and often in vain.

PHOTOS OF THE DAY

A woman grieves at her husband’s memorial at South Tower Memorial Pool during memorial observances on the 13th anniversary of the Sept. 11 terror attacks on the World Trade Center in New York. Family and friends of those who died read the names of the nearly 3,000 people killed in New York, at the Pentagon and near Shanksville, Pennsylvania. Chang W. Lee/The New York Times/AP

An artwork titled ‘Scattered Light,’ created by American artist Jim Campbell, is lit at an exhibition in Hong Kong’s Central district. The installation that has a structure with 2,000 light bulbs was presented by Hong Kong Arts Development Council. Vincent Yu/AP

Market Closes for September 11^th, 2014    

Market Index	Close	Change
Dow Jones	17049.00	-19.71
		-0.12%
S&P 500	1997.45	+1.76   +0.09%
NASDAQ	4591.805	+5.282   +0.12%
TSX	15534.32	+62.43
		+0.40%

International Markets

Market Index	Close	Change
NIKKEI	15909.20	+120.42
		+0.76%
HANG SENG	24662.64	-42.72
		-0.17%
SENSEX	26995.87	-61.54
		-0.23%
FTSE 100	6799.62	-30.49
		-0.45%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.196	2.201
CND. 30 Year Bond	2.717	2.726
U.S.    10 Year Bond	2.5487	2.5378
U.S. 30 Year Bond	3.2756	3.2663

Currencies

BOC Close	Today	Previous
Canadian $	0.90607	0.91347
US $	1.10367	1.09473
Euro Rate 1 Euro=		Inverse
Canadian $	1.42630	0.70111
US $	1.29233	0.77380

Commodities

Gold	Close	Previous
London Gold Fix	1241.58	1249.99
Oil	Close	Previous
WTI Crude Future	92.83	91.67

Market Commentary:

Canada

By Eric Lam

     Sept. 11 (Bloomberg) — Canadian stocks rose, with the benchmark index climbing from a three-week low, as bank shares gained and BlackBerry Ltd. rallied.

     BlackBerry jumped 6.1 percent after acquiring a mobile technology company to shore up its smartphone management features as it targets business users. Royal Bank of Canada climbed 0.8 percent. Bellatrix Exploration Ltd. lost 1.7 percent as two gas plants will go offline, affecting production for September. Athabasca Oil Corp. and Kelt Exploration Ltd. dropped at least 2 percent.

     The Standard & Poor’s/TSX Composite Index rose 62.43 points, or 0.4 percent, to 15,534.32 at 4 p.m. in Toronto. It closed Sept. 3 at a record 15,657.63. The S&P/TSX has advanced 14 percent this year, the second-best performer among the world’s developed markets behind Denmark.

     Royal Bank, the nation’s second-largest lender, rose 0.8 percent to C$81.86 and Bank of Nova Scotia increased 0.6 percent to C$72.76.

     BlackBerry advanced 6.1 percent to C$11.91, the most since June, after acquiring London-based Movirtu Ltd., which has developed a technology that allows users to connect more than one phone number to a single device.

     Athabasca Oil declined 2 percent to C$6.71 and  Kelt Exploration lost 2.9 percent to C$12.75. Brent for October settlement rose 4 cents to $98.08 a barrel on the ICE Futures Europe exchange after earlier sliding as far as $96.72, the lowest since July 2, 2012.

US

By Callie Bost and Lu Wang

     Sept. 11 (Bloomberg) — The Standard & Poor’s 500 Index erased losses, sending the gauge higher for a second day, as a rebound in oil offset concerns over escalating geopolitical tension and the timing of possible interest-rate increases.

     Energy shares in the S&P 500 rose 0.1 percent, erasing an earlier loss of 1.2 percent as crude prices recovered from an eight-month low. Celgene Corp. slipped 2.3 percent to pace declines in health-care stocks. MasterCard Inc. dropped 1.3 percent after losing a court challenge to a European Union antitrust curb on card-payment fees. Lululemon Athletica Inc. soared 14 percent after raising its full-year forecast as quarterly profit exceeded estimates.

     The S&P 500 added 0.1 percent to 1,997.45 at 4 p.m. in New York, after an earlier decline of as much as 0.5 percent. The Dow Jones Industrial Average lost 19.71 points, or 0.1 percent, to 17,049. The Nasdaq Composite Index added 0.1 percent. About 5.5 billion shares changed hands on U.S. exchanges, 1.8 percent below the three-month average.

     “We’re just stuck in a tight range because the market has been so strong this year and every now and then the market needs a little time to cool off,” Dan Miller, director of equities at GW&K Investment Management in Boston, said by phone. The firm oversees more than $20 billion. “Geopolitical events of course always make the market nervous.”

     The S&P 500 halted a two-day slide yesterday as a rally in Apple Inc. boosted technology shares. The gauge fell 0.7 percent on Sept. 9, its first move in either direction of more than 0.5 percent in 15 days, the longest streak since 1995. It closed at a record on Sept. 5.

     The S&P 500 is down 0.5 percent this week as investors focus on the timing of an interest-rate increase from the Federal Reserve. The Fed is gauging the strength of the economy as it winds down a bond-buying program and considers raising rates. Policy officials next meet Sept. 16-17.

     A report today showed the number of Americans filing for unemployment benefits unexpectedly rose last week to a two-month high, interrupting a steady decrease to the lowest level since before the last recession. The week included the Labor Day holiday, and the data are difficult to adjust during such periods, a Labor Department spokesman said.

     Equities slid earlier as European Union officials said new sanctions against Russia will come into force tomorrow because of the country’s continued support of separatists in Ukraine. Ending days of wrangling, EU countries agreed to implement plans to bar some Russian state-owned defense and energy companies from raising capital in the bloc. President Barack Obama said the U.S. is joining the EU in slapping more sanctions on Russia.

     Obama yesterday pledged a “relentless” campaign to destroy Islamic State extremists in Iraq and Syria, with Middle Eastern allies such as Saudi Arabia and Jordan playing crucial supporting roles.                          

     Data overseas showed China’s consumer inflation eased to a four-month low in August while factory-gate prices extended their decline to 30 months, adding to signs of weakness in domestic demand.

     “It’s between earnings seasons so the focus is on macro events and geopolitical risks because that’s all people have to talk about,” John Carey, a Boston-based fund manager at Pioneer Investment Management Inc., which oversees about $230 billion, said in a phone interview. “People continue to look ahead to possibility of higher interest rates next year and next year is getting closer.”

     The Chicago Board Options Exchange Volatility Index, a gauge of S&P 500 derivatives prices, fell 0.6 percent to 12.8 for a second day of losses.

     Seven of 10 main industries in the S&P 500 advanced. Energy companies rose 0.1 percent, wiping out declines as West Texas Intermediate crude rebounded from an eight-month low and Brent oil erased losses.

     Brent crude tumbled to its lowest intraday level in more than two years earlier in the day as the International Energy Agency cut global oil demand forecasts for this year and next. Oil markets in the U.S. and Europe face a glut amid constrained consumption and the recovery of supplies from Libya.

     Energy shares have dropped 3.8 percent in September, poised for the worst monthly loss since January.

     Health-care stocks slipped 0.3 percent for the biggest decline in the S&P 500 today. Celgene slid 2.3 percent to $91.96 and Gilead Sciences Inc. decreased 1.7 percent to $106.39. Biogen Idec Inc. decreased 1.5 percent to $327.11.

     MasterCard lost 1.3 percent to $75.62. The EU’s Court of Justice ruled that the fees set by MasterCard had unfairly restricted competition and that it failed to show benefits to justify its system. Visa Inc. dropped 0.9 percent to $214.95.

     Financial shares gained 0.3 percent as Bank of America Corp. jumped 1.3 percent to $16.57.

     Lululemon soared 14 percent to $43.73. The yogawear maker that ended a dispute with its founder last month reported second-quarter profit that exceeded analyst estimates and increased its earnings forecast for the year by a penny to $1.72 to $1.77 a share. Revenue rose 13 percent to $390.7 million in the second quarter from a year earlier.

     JDS Uniphase Corp. jumped 10 percent to $13.36 on plans to split into two separate publicly traded entities. One company will focus on optical components and commercial lasers, while the other will sell networking equipment, JDS Uniphase disclosed in a filing yesterday.

     International Paper Co. rose 4.2 percent to $50.36 for the biggest gain in the S&P 500. The packaging company said at a conference today that it is working with advisers and has progressed to a more “serious valuation” phase on a master limited partnership structure.

     RadioShack Corp. rallied 9.6 percent to $1.02. The struggling electronics retailer said it’s working with creditors and other parties to get more capital and avoid bankruptcy after posting another quarter of mounting losses and plunging sales.

     RadioShack shares tumbled 42 percent from Aug. 29 through yesterday.
 

Have a wonderful evening everyone.

 

Be magnificent!

Every man has an equal right

to the necessities of life,

even as birds and beasts have.

 

Mahatma Gandhi

As ever,
 

Carolann

 

If you want to understand today, you have to search yesterday.

                                                  -Pearl S. Buck, 1892-1973

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this date in 2000, the Broadway musical “Cats” closed after 7,485 performances. The show, which ran for almost 18 years, ranks as the second longest-running musical in Broadway history.

Web Excursions:

Chowhound.com is  a community discussion sit.  Post a question and get immediate advice and insider tips on places to eat from local foodies – great if you’re planning a trip.

Movie-locations.com features a world map of movie set locations.  Navigate the site using movie titles or a favorite actor or director.

PHOTOS OF THE DAY

Horse whisperer Martin Tata lies with his five-year-old horse ‘Primavera’ as he performs a demonstration of ‘Indian taming’ at the Polo Club Puesto Viejo ranch in Canuelas, northeast of Buenos Aires. Tata says the techniques that he uses to tame unbroken horses avoids unnecessary violence and helps build a more harmonious relationship between humans and the horses. Enrique Marcarian/Reuters

British history enthusiasts portraying ‘Feldwebelleutnant’ officer Fritz Brandt (front) of the Sturmabteilungbrandt group, holding a dog in his arms, and German Gefreiter Gunter Meyer (back) attend the re-enactment of the First Battle of the Marne, which took place a century ago, at Chauconin-Neufmontiers, Eastern Paris. Dozens of volunteers dressed in French and German military uniforms recreated the battle from two trenches dug out by local residents to mark the 100th anniversary of the start of the First World War (WWI). Charles Platiau/Reuters

Market Closes for September 10^th, 2014    

Market Index	Close	Change
Dow Jones	17068.71	+54.84
		+0.32%
S&P 500	1995.79	+7.35   +0.37%
NASDAQ	4586.523	+34.238   +0.75%
TSX	15471.67	-65.14
		-0.42%

International Markets

Market Index	Close	Change
NIKKEI	15788.78	+39.63
		+0.25%
HANG SENG	24705.36	-485.09
		-1.93%
SENSEX	27057.41	-207.91
		-0.76%
FTSE 100	6830.11	+1.11
		+0.02%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.201	2.172
CND. 30 Year Bond	2.726	2.702
U.S.    10 Year Bond	2.5378	2.4964
U.S. 30 Year Bond	3.2663	3.2288

Currencies

BOC Close	Today	Previous
Canadian $	0.91347	0.91078
US $	1.09473	1.09796
Euro Rate 1 Euro=		Inverse
Canadian $	1.41461	0.70691
US $	1.29220	0.77387

Commodities

Gold	Close	Previous
London Gold Fix	1249.99	1256.21
Oil	Close	Previous
WTI Crude Future	91.67	92.75

Market Commentary:

Canada

By Eric Lam

     Sept. 10 (Bloomberg) — Canadian stocks fell to the lowest level in three weeks as energy shares followed losses in oil.

     Bankers Petroleum Ltd. and Legacy Oil & Gas Inc. declined more than 2.2 percent as crude in New York dropped to the lowest in eight months. AuRico Gold Inc dropped 5.6 percent for the biggest loss in the Standard & Poor’s/TSX Composite Index.

     The S&P/TSX fell 64.92 points, or 0.4 percent, to 15,471.89 at 4 p.m. in Toronto. The gauge has dropped in four of the past five days and fallen 1.2 percent since a record on Sept. 3. Trading volume was 5.7 percent below the 30-day average at this time of day.

     Bankers Petroleum sank 2.2 percent to C$5.69 and Legacy Oil & Gas slumped 3.2 percent to C$6.92 to pace declines among energy producers. Brent traded below $100 a barrel for a third day and West Texas Intermediate fell 1.2 percent in New York to settle at $91.67 a barrel.

     OPEC cut forecasts for the amount of crude it will need to pump by the most in three years as surging U.S. output reduces reliance on the group’s barrels. Crude prices are poised to drop next year as American production climbs to a 45-year high, the Energy Information Administration said yesterday.

     AuRico Gold declined 5.6 percent to C$4.20 and Torex Gold Resources Inc. tumbled 4.8 percent to C$1.58 as gold futures for December delivery fell to a three-month low.

USA

By Callie Bost and Jeremy Herron

     Sept. 10 (Bloomberg) — U.S. stocks rose, following a two- day slide, as Apple Inc. rallied to boost technology shares. Treasuries declined with emerging-market equities, while the dollar gained on speculation interest rates may rise sooner than anticipated.

     The Standard & Poor’s 500 Index climbed 0.4 percent at 4 p.m. in New York. Apple jumped 3.1 percent, the most since April, to lead the Nasdaq 100 Index higher. The MSCI Emerging Markets Index sank the most since March. The yield on 10-year Treasury notes rose three basis points to 2.53 percent, the highest since July. The Bloomberg Dollar Spot Index rose 0.2 percent and commodities retreated as Brent crude slid to a 17- month low.

     Apple rallied a day after introducing new products including a smartphone, watch and online payments processor. BlackRock Inc., the world’s biggest money manager, is among investors speculating that an improving labor market and signs of inflation may justify sooner-than-forecast rate increases by the Federal Reserve. Data this week may show that claims for unemployment benefits fell, retail sales improved, and consumer confidence rose, strengthening the case for higher rates next year.

     “Everybody has been watching Apple,” Matt Maley, the Newton, Massachusetts-based equity strategist at Miller Tabak & Co. LLC, said via phone. “It’s an Apple-dominated market, especially in a week where we don’t have a lot of macro data coming out.”

     The S&P 500 advanced after closing yesterday at its lowest level since Aug. 22 following a two-day decline of 1 percent. The gauge has rallied 8 percent this year.                       

     The Nasdaq 100 Index jumped 0.8 percent, bolstered by Apple and Garmin Ltd., which rallied 4 percent to rebound from a selloff yesterday. Health-care stocks gained 0.7 percent as a group.

     EBay Inc. sank 3.1 percent after Apple introduced a mobile- payment service that may hurt EBay’s PayPal business.

     Energy producers lost 0.3 percent for the second-biggest slide of the 10 main S&P 500 groups, as Brent traded below $100 a barrel for a third day. West Texas Intermediate crude fell to a 16-month low.

     OPEC reduced forecasts for the amount of crude it will need to supply by the most in at least three years as surging North American shale output reduces reliance on the group’s supplies. Crude prices are poised to drop next year as American production climbs to a 45-year high, the Energy Information Administration said yesterday.

     Ten-year Treasuries declined for a fifth-straight day, the longest streak since June, as yields climbed to a one-month high. Spain’s 10-year yield increased seven basis points to 2.27 percent, while Italy’s increased four basis points to 2.40 percent.

     Traders are bringing forward bets for when the Fed will begin raising interest rates. They see a 79 percent chance of an increase to at least 0.5 percent by September 2015, federal fund futures data showed yesterday. That compares with a 73 percent probability seen on Aug. 29. Policy makers have kept their target for overnight lending between banks in a range of zero to 0.25 percent since December 2008.

     BlackRock’s Chief Investment Officer Rick Rieder said interest rates are likely to drift higher as research from the Federal Reserve Bank of San Francisco Sept. 8 indicated investors may be underestimating how quickly U.S. policy makers may tighten policy. Rieder said last month in a Twitter post that the Fed may increase rates early in 2015. Fed officials next meet Sept. 16-17.

     “The bond market had a strong rally in August and it seems to be catching up with reality a bit,” said Luca Jellinek, head of European rates strategy at Credit Agricole SA’s investment banking unit in London.

     The Bloomberg Dollar Spot Index, which tracks the greenback against a basket of 10 leading currencies, rose to its strongest level since July 2013. The greenback gained 0.6 percent to 106.79 yen, the highest since September 2008. It was little changed at $1.2912 per euro after reaching $1.2860 yesterday, the strongest since July 2013.

     “The U.S. dollar has had a really nice rally against everything else,” said Chris Weston, chief market strategist in Melbourne at IG Australia, a unit of IG Group. “The euro and the pound are so oversold that now people are looking to a positive U.S. dollar bias against the Aussie.”                       

     The MSCI Emerging Markets Index fell for a fifth day, capping its longest slide since June, as China’s money supply growth unexpectedly eased and economic gains in Turkey missed estimates.

     The Shanghai Composite Index dropped 0.4 percent and the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong sank 2.6 percent, the most in seven months. The city’s markets were shut yesterday for a holiday.

     Apple’s Asian suppliers retreated after the company introduced new products yesterday. Taiwan Semiconductor Manufacturing Co. slid 1.6 percent, Taipei-based Foxconn Technology Co. fell 1.2 percent and China’s AAC Technologies Holdings Inc. dropped 2.3 percent in Hong Kong.

     The Borsa Istanbul National Index dropped 0.7 percent and the lira fell for a third day. Russia’s ruble declined 0.5 percent, weakening for a third day, while the Micex equity index was little changed.

     Ukrainian President Petro Poroshenko said Russia has withdrawn more than two-thirds of its troops from his country as European Union governments met to consider imposing tougher sanctions on Moscow.

     The Stoxx Europe 600 Index fell 0.1 percent, paring an earlier drop of 0.6 percent. The gauge has lost 1.2 percent since reaching a two-month high on Sept. 4, when the region’s central bank unexpectedly cut interest rates and announced a plan to buy securitized debt.

     Banco Santander SA slid 0.7 percent after Spain’s biggest bank said Chairman Emilio Botin died of a heart attack at the age of 79. The board will meet today to name a successor.

     Kingfisher Plc rose 4.3 percent after Europe’s largest home-improvement retailer said Ian Cheshire will step down as chief executive officer and hand leadership of the company to the head of the French Castorama unit, Veronique Laury.

 

Have a wonderful evening everyone.

 

Be magnificent!

I must confess that I do not draw a sharp line

or any distinction between economics and ethics.

 

Mahatma Gandhi

As ever,

 

Carolann

 

Imagination is a poor substitute for experience.

                           -Havelock Ellis, 1859-1939

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Beautiful full moon last night.  This time of year it is spectacular as it rises in the early evening sky.

On this day in 1776, Congress named the United States of America from the previous name of United Colonies.

This month’s issue of Bon Apétit lists the Best New Restaurants for the year.  One of the top ten is Westward in Seattle.

PHOTOS OF THE DAY

Apple CEO Tim Cook speaks about the Apple Watch during an Apple event at the Flint Center in Cupertino, California. Stephen Lam/Reuters

This image released by Parks Canada shows a side-scan sonar image of ship on the sea floor in northern Canada. Canadian Prime Minister Stephen Harper announced that one of two fabled British explorer ships, the HMS Erebus and HMS Terror, that disappeared in the Arctic more 160 years ago has been found. The ships were last seen in the late 1840s. The Prime Minister said it remains unclear which ship has been found, but images show there’s enough information to confirm it’s one of the pair. Parks Canada/AP

Market Closes for September 9^th, 2014    

Market Index	Close	Change
Dow Jones	17013.87	-97.55
		-0.57%
S&P 500	1988.70	-12.84   -0.64%
NASDAQ	4552.285	-40.000   -0.87%
TSX	15532.31	+22.92
		+0.15%

International Markets

Market Index	Close	Change
NIKKEI	15749.15	+44.04
		+0.28%
HANG SENG	25190.45	-49.70
		-0.20%
SENSEX	27265.32	-54.53
		-0.20%
FTSE 100	6829.00	-5.77
		-0.08%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.172	2.141
CND. 30 Year Bond	2.702	2.679
U.S.    10 Year Bond	2.4964	2.4712
U.S. 30 Year Bond	3.2288	3.2272

Currencies

BOC Close	Today	Previous
Canadian $	0.91078	0.91160
US $	1.09796	1.09698
Euro Rate 1 Euro=		Inverse
Canadian $	1.42066	0.70390
US $	1.29390	0.77285

Commodities

Gold	Close	Previous
London Gold Fix	1256.21	1254.90
Oil	Close	Previous
WTI Crude Future	92.75	92.66

Market Commentary:

Canada

By Eric Lam

     Sept. 9 (Bloomberg) — Canadian stocks rose, ending a three-day slump, as oil producers gained before a U.S. supply report to offset a drop in gold producers.

     Canexus Corp. jumped 10 percent as the company will resume construction at its rail hub. Encana Corp. advanced 3.3 percent after deciding to sell its controlling stake in PrairieSky Royalty Ltd. for C$2.6 billion following the unit’s initial offering. PrairieSky declined 4.4 percent.

     The Standard & Poor’s/TSX Composite Index rose 27.42 points, or 0.2 percent, to 15,536.81 at 4 p.m. in Toronto. It closed Sept. 3 at a record 15,657.63.

     The S&P/TSX has advanced 14 percent this year, the second- best performer among the world’s developed markets behind Denmark. Trading volume in the S&P/TSX was 14 percent higher than the 30-day average today.

     Encana, Canada’s second-largest natural gas producer, climbed 3.3 percent to C$25.51, the highest since June. A group of banks including Toronto-Dominion Bank and Canadian Imperial Bank of Commerce, which co-led PrairieSky’s IPO in May, will buy Encana’s remaining stake for C$36.50 a share, 30 percent more than the IPO price. The offering was the largest in Canada in 14 years.

     PrairieSky dropped 4.4 percent to C$36.40, its biggest decrease ever.

     Canadian housing starts fell for the first time in five months in August, as declines in Ontario outweighed gains on the west coast. Work on new homes fell 3.7 percent to 192,368 units at a seasonally adjusted annual pace, Canada Mortgage & Housing Corp. said. The figure trailed the 195,000 median forecast.

     Raging River Exploration Inc. increased 4.1 percent to C$10.78 and Whitecap Resources Inc. added 0.6 percent to C$17.44 as West Texas Intermediate crude rose 9 cents to $92.75 a barrel from a seven-month low ahead of data forecast to show U.S.supplies fell.

     B2Gold Corp. lost 1.2 percent to C$2.43 and Argonaut Gold Inc. slipped 0.8 percent to C$3.97. Gold for December delivery retreated 0.5 percent to $1,248.50 an ounce in New York, dropping to a three-month low.

     Canexus surged 10 percent to C$4.93, the biggest gain since August, after a judge ruled in favor of Canexus in its dispute with MEG Energy Corp. over a pipeline construction agreement.

     Canexus estimates construction to link its Cold Lake pipeline system to MEG Energy’s pipeline will take about two weeks to complete.

US

By Elena Popina and Lu Wang

     Sept. 9 (Bloomberg) — U.S. stocks fell, with the Standard & Poor’s 500 Index declining the most in a month, as concerns grew that the Federal Reserve may raise interest rates sooner than anticipated and a rally in Apple Inc. disappeared.

     Apple wiped out a rally of as much as 4.8 percent after unveiling new products including larger-screen iPhones. Garmin Ltd. and Amazon.com Inc. dropped at least 3.5 percent, pacing declines int the technology-heavy Nasdaq 100 Index. McDonald’s Corp. retreated 1.5 percent as its monthly sales missed estimates. Home Depot Inc. lost 2.1 percent after confirming that hackers attacked its computer systems.

     The S&P 500 fell 0.7 percent to 1,988.44 at 4 p.m. in New York, for its largest retreat since Aug. 5. The Dow Jones Industrial Average lost 97.55 points, or 0.6 percent, to 17,013.87. The Nasdaq 100 slumped 0.8 percent, and the Russell 2000 Index of smaller companies tumbled 1.2 percent, its biggest drop since July 31. About 5.8 billion shares changed hands on U.S. exchanges, 3.5 percent above the three-month average.

     “There are still a number of people who fear the Fed will raise rates too soon, but I don’t think there’s anything to be gained by being early in raising interest rates,” John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York, said in a phone interview. “If the Fed tightens too soon, it will drag the U.S. and the world into another recession.”

     The Fed is gauging the strength of the economy as it winds down a bond-buying program and considers the timing of raising rates. Policy officials next meet Sept. 16-17.

     Assessments of the strength of the economy are mixed, after gross domestic product expanded more than previously forecast in the second quarter, while a report on Sept. 5 showed the economy added fewer jobs than anticipated in August. Data this week will likely show a decline in weekly jobless claims and stronger retail sales, according to economists’ forecasts.

     Rick Rieder, BlackRock Inc.’s chief investment officer of fundamental fixed income in New York, said in a report that an improving labor market and signs of inflation argue for the Fed to boost borrowing costs. Meanwhile, former Fed Chairman Alan Greenspan said the U.S. economic rebound has been hindered by a slump in the construction industry as wage growth remains slow and credit conditions tight.

     Wall Street strategists have been raising their targets for the S&P 500. Gina Martin Adams at Wells Fargo & Co. and Tony Dwyer, a strategist at Canaccord Genuity Securities LLC, were the latest today to lift their forecasts for the S&P. They follow increased projections from Morgan Stanley and Deutsche Bank AG and a bullish rating on global stocks from Goldman Sachs Group Inc.’s portfolio strategy team.

     The S&P 500 retreated 0.3 percent yesterday after a five- week rally, its longest winning streak this year. The benchmark is trading at 16.6 times the projected earnings of its members, near the 16.8 multiple reached on Sept. 5 that was the highest valuation since the end of 2009, according to data compiled by Bloomberg.

     The S&P 500 had not posted a move of more than 0.5 percent in either direction for 14 straight days until today, the longest streak since 1995, data compiled by Bloomberg show. The last time the index fell more than 10 percent was three years ago.

     The Chicago Board Options Exchange Volatility Index, the gauge known as the VIX, climbed 6.6 percent to 13.50 today, the most in more than a month. The gauge lost 29 percent last month, the biggest drop in almost three years.

     All 10 groups in the S&P 500 dropped today, with financial companies, utilities and phone shares losing more than 1 percent. Technology shares dropped 0.6 percent, reversing an earlier rally of 0.7 percent.

     Apple fell 0.4 percent to $97.99, after climbing to within one point of its intraday record of $103.74 reached last week. The shares have typically fallen at other events where it debuted new products. Apple is up 22 percent so far this year, exceeding the 7.6 percent gain for the S&P 500.

     The company announced a smartwatch, mobile-payments system, health applications and bigger-screen iPhones that all work together — in the biggest new lineup so far under Chief Executive Officer Tim Cook.

     Garmin Ltd. dropped 3.5 percent to $51.71. The maker of navigation services tumbled as much as 6.1 percent after Apple introduced the Apple Watch, which will include apps for map.

     Amazon.com Inc. retreated 3.7 percent, the most since July, to $329.75. The company yesterday cut the price of its Fire smartphone to 99 cents to boost adoption of the device.

     Other technology companies also slumped. Yahoo Inc. dropped 2.5 percent, EBay Inc. lost 2.8 percent, and Intel Corp. slid1.2 percent.

     Morgan Stanley dropped 2.7 percent to $33.91 and Goldman Sachs Group Inc. lost 1.5 percent to $177.40. The Fed is planning risk-based capital standards for banks that are tougher than those developed by their international counterparts, Fed Governor Daniel Tarullo told lawmakers today.

     McDonald’s retreated 1.5 percent to $91.09. The world’s largest restaurant chain said sales at stores open at least 13 months fell 3.7 percent in August as its U.S. slump continued for the fourth straight month.

     Home Depot lost 2.1 percent to $88.93 after it confirmed that hackers attacked its computer systems at stores in the U.S.

and Canada. The company, which didn’t disclose how many customers may have been affected, said the continuing investigation is focused on purchases made since April.

     Pinnacle Foods Inc. declined 4.7 percent to $31.99. Shareholders affiliated to Blackstone Group LP will sell 15 million shares in the company, according to a statement late yesterday. Blackstone held a 51 percent stake in Pinnacle as of June 30, according to data compiled by Bloomberg.

     Avon Products Inc. retreated 3.6 percent to $13.17. The company said yesterday that Kimberly Ross resigned as chief financial officer, effective Oct. 2. The cosmetics company has dropped 24 percent this year.

     Annie’s Inc. rallied 38 percent to $46.10. General Mills Inc., the maker of Cheerios, Bisquick and Yoplait, will buy the company for about $820 million, gaining a popular lineup of natural and organic foods. General Mills dropped 0.6 percent to $53.32.

 

Have a wonderful evening everyone.

 

Be magnificent!

That economics is untrue which ignores or disregards moral values.

The extension of the law of nonviolence in the domain of economics means nothing less

than the introduction of moral values as a factor to be considered with regulating international commerce.

 

Mahatma Gandhi

As ever,

 

Carolann

 

A man cannot be comfortable without his own approval.

                                        -Mark Twain, 1835-1910

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

We went to see the movie Boyhood last week – the movie that has been getting good reviews from the critics.  It took twelve years to make and it felt like half that long to watch it.  It is a long movie – about three hours.  I thought it was good; Gary thought it was terrific, so maybe gender has something to do with appreciation with this one.  It is a pretty clever movie, I have to admit.

On this date in 1966, the hit science-fiction series “Star Trek” made its debut on NBC.

Photos of the Day

A jogger runs through the snow at Nose Hill Park during an early year snow fall in Calgary, Alberta. The snow and unseasonably cold weather are supposed to last for two days according to local media reports. Todd Korol/Reuters

A Yes sign is displayed in a field with Llamas grazing in Jedburgh, Scotland. The British government plans to offer Scotland more financial autonomy in the coming days as polls predict a very close vote in the September 18 referendum on Scottish independence. Scott Heppell/AP

Market Closes for September 8^th, 2014    

Market Index	Close	Change
Dow Jones	17111.42	-25.94
		-0.15%
S&P 500	2001.56	-6.15   -0.31%
NASDAQ	4592.285	+9.385   +0.20%
TSX	15510.78	-59.14
		-0.38%

International Markets

Market Index	Close	Change
NIKKEI	15705.11	+36.43
		+0.23%
HANG SENG	25190.45	-49.70
		-0.20%
SENSEX	27319.85	+293.15
		+1.08%
FTSE 100	6834.77	-20.33
		-0.30%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.141	2.116
CND. 30 Year Bond	2.679	2.666
U.S.    10 Year Bond	2.4712	2.4551
U.S. 30 Year Bond	3.2272	3.2255

Currencies

BOC Close	Today	Previous
Canadian $	0.91160	0.91905
US $	1.09698	1.08808
Euro Rate 1 Euro=		Inverse
Canadian $	1.41478	0.70682
US $	1.28970	0.77537

Commodities

Gold	Close	Previous
London Gold Fix	1254.90	1268.37
Oil	Close	Previous
WTI Crude Future	92.66	93.29

Market Commentary:

Canada

By Eric Lam

     Sept. 8 (Bloomberg) — Canadian stocks fell a third day, with the benchmark index at the lowest level in nearly three weeks, as commodity producers dropped after Brent crude sank to a 16-month low amid weaker Chinese trade data.

     Bankers Petroleum Ltd. and Athabasca Oil Corp. retreated more than 2.9 percent to pace declines among oil producers. B2Gold Corp. lost 2.8 percent with gold touched the lowest since June. Bombardier Inc. rose the most in a month after resuming test flights for its CSeries passenger jet.

     The Standard & Poor’s/TSX Composite Index fell 60.53 points, or 0.4 percent, to 15,509.39 at 4 p.m. in Toronto, the lowest since Aug. 19. It closed Sept. 3 at a record 15,657.63.

     The S&P/TSX has advanced 14 percent this year, the second- best performer among the world’s developed markets behind Denmark. Trading volume in the S&P/TSX was 3 percent below the 30-day average.

     Bankers Petroleum sank 5.2 percent to C$5.98, the lowest since May, and Athabasca Oil lost 2.9 percent to C$7.15 as the S&P/TSX Energy Index declined 1.2 percent.

     Brent crude fell 62 cents to $100.20 a barrel as Chinese imports slipped, bolstering concern there’s a global oil surplus. West Texas Intermediate retreated 0.7 percent to $92.66 a barrel in New York, the lowest close since Jan. 14.                       

     China’s trade surplus climbed to a record in August, as imports fell for a second month. China is the world’s largest consumer of commodities and Canada’s second-largest trading partner after the U.S.

     B2Gold lost 2.8 percent to C$2.46 and Yamana Gold Inc. fell 3.9 percent to C$8.07. Gold for December delivery decreased 1 percent in New York to settle at $1,254.30 an ounce.

     Bombardier advanced 0.6 percent to C$3.65, the biggest gain since Aug. 8. The aircraft manufacturer yesterday conducted the first test flight of its CSeries jet since an engine failure in May delayed efforts to introduce the airliner next year.

     Bombardier has taken steps to fix the problem, including modifying the engine’s oil-lubrication system, the company said. The Montreal-based company is targeting a CSeries debut in the second half of 2015 after missing a release date last year.

US

By Elena Popina

     Sept. 8 (Bloomberg) — The Standard & Poor’s 500 Index fell, after a five-week rally sent the gauge to a record, as declines in energy companies along with oil prices overshadowed a rally by Yahoo! Inc.

     Exxon Mobil Corp. and Chevron Corp. dropped at least 0.9 percent to pace declines in the Dow Jones Industrial Average as oil prices tumbled. Ford Motor Co. slipped 2 percent after Morgan Stanley downgraded the shares of the automaker. Yahoo climbed 5.6 percent to the highest level since 2006 after Alibaba Group Holding Ltd. said it plans to raise as much as $21.1 billion in an initial public offering.

     The S&P 500 retreated 0.3 percent to 2,001.54 at 4 p.m. in New York. The Dow lost 25.94 points, or 0.2 percent, to 17,111.42. The Nasdaq 100 Index added 0.1 percent, led by Yahoo. About 5.2 billion shares changed hands today, 6 percent below the three-month average.

     “You have five weeks of S&P growth, we may be in the overbought territory,” Bruce Bittles, chief investment strategist at Milwaukee-based RW Baird & Co., which oversees $110 billion, said in a phone interview. “You generally don’t continue to grow forever.”

     The S&P 500 climbed 0.2 percent last week, completing its longest streak of weekly gains this year, as investors speculated weaker jobs growth will keep the Federal Reserve from raising interest rates. Bets on continued Fed support got a boost on Sept. 5 as data showed the economy added fewer jobs than estimated in August and the unemployment rate fell to 6.1 percent.                         

     The Fed is gauging the strength of the labor market as it winds down a bond-buying program and considers the timing of raising interest rates. Policy officials next meet Sept. 16-17.

     Low volatility across financial markets may signal investors are underestimating how quickly the Fed will raise interest rates, according to researchers at the San Francisco Fed.

     “Surveys, market expectations, and model estimates show that the public seems to expect a more accommodative policy than Federal Open Market Committee participants,” Jens Christensen, a senior economist, and Simon Kwan, a vice president of financial research, said in a report today. Data also suggest that the public is “less uncertain about their projections.”

     Morgan Stanley chief U.S. equity strategist Adam Parker announced today an increase in the firm’s 12-month S&P 500 forecast to 2,125, while Goldman Sachs Group Inc. raised its three-month rating on stocks to the equivalent of buy, after the European Central Bank reduced its main interest rates and implement an asset-buying plan. The move reversed a July 26 call, when the firm cut its three-month rating on stocks to neutral amid expectations government bond yields would increase.                       

     The S&P 500 trades at 18 times the reported earnings of its members, near the highest level in four years. The gauge hasn’t posted a four-day streak of losses in all of 2014 and the last time it fell more than 10 percent was three years ago.

     While markets are calm for now, the trajectory of the U.S. stock market is about to get bumpier, according to one measure in the options market.

     Investors are bidding up contracts that protect against losses in the S&P 500 in the next three months, driving the price to near the highest level in 19 months compared with contracts expiring in a month. The difference in implied volatility shows traders are hedging for risks that may be months away while expressing less concern over the present.

     U.S. equities climbed last week after Ukraine agreed on a cease-fire with pro-Russian separatists to stem months of bloodshed. The S&P 500 extended declines in afternoon trading today after an NBC affiliate in Florida reported a possible Ebola case at an area hospital, citing the U.S. Centers for Disease Control and Prevention. Shares recouped some of the losses after the patient tested negative, according to a report from the Washington Post.

     The Chicago Board Options Exchange Volatility Index, a gauge of investor concern derived from options prices, climbed 4.7 percent to 12.66 today. The index plummeted 29 percent in August, the biggest monthly drop since October 2011.

     Eight of 10 main industries in the S&P 500 fell today, with energy shares dropping 1.6 percent to lead declines. Brent crude briefly fell below $100 for the first time since June 2013 as Chinese imports slipped in August, bolstering concern there’s a global oil surplus.

     Energy companies also had the worst performance last week, with a loss of 1.5 percent. Brent has tumbled 13 percent since June 19 as economies from Europe to Asia show signs of slowing while oil output climbs. Oil markets in the U.S. and Europe face a glut amid constrained consumption and the recovery of supplies from Libya, the International Energy Agency, the Paris-based adviser to 29 nations, said last month.

     Marathon Oil Corp. dropped 1.7 percent to $40.21 and Newfield Exploration Co. lost 4.7 percent, the most in the S&P 500, to $40. Exxon Mobil retreated 1.5 percent to $97.77, while Chevron dropped 0.9 percent to $126.21.

     Ford declined 2 percent to $16.80 after Morgan Stanley downgraded the shares to underweight, similar to sell, from overweight, similar to buy. The brokerage cited a high exposure to the U.S. market, where it said sales in the last five years were driven by pent-up demand.

     Campbell Soup Co. slid 2.6 percent to $43.39 as its 2015 profit forecast was less than analysts had estimated. The company has struggled to rekindle Americans’ appetite for soup, with sales of ready-to-serve varieties decreasing 8 percent in the quarter ended Aug. 3.

     Apple Inc. slipped 0.6 percent to $98.36. The company will unveil the latest iPhones and a wearable gadget at an event tomorrow near its headquarters. The iPhones will include software that lets the handset act as a mobile wallet, while the watch-like wearable device is expected to include features for tracking health and fitness activity, people familiar with the plans have said.

     Technology shares had the best performance among the S&P 500 groups, climbing 0.2 percent.

     Yahoo, which owns more than 22 percent of e-commerce company Alibaba, rallied 5.6 percent to $41.81 for the biggest advance in the S&P. Alibaba plans to list on the New York Stock Exchange this month, according to a regulatory filing on Sept. 5. Yahoo will sell 121.7 million of its Alibaba shares, potentially reaping as much as $8.03 billion.

     Facebook Inc. added 0.8 percent to $77.89 as its market value exceeded $200 billion, making it the 22nd-largest company in the world, as investors bet on the company to capitalize on the future of mobile advertising.

     Rackspace Hosting Inc. rallied 6.9 percent to $39.79 after people familiar with the situation said CenturyLink Inc. has discussed the idea of acquisition with the San Antonio, Texas- based company. The cloud-computing provider said last month it is conducting an internal review of its strategic options. A spokeswoman for Rackspace and a representative for CenturyLink at Joele Frank Wilkinson Brimmer Katcher declined to comment.

     Multimedia Games Holding Co. jumped 30 percent to $36.15 in its biggest advance since February 2012 as Global Cash Access Holdings Inc., a provider of cash solutions to the gaming industry, said it will buy the company for about $1.2 billion to expand its access to casino floors.

     Boeing Co. rose 2.6 percent to $127.98 after Ryanair Holdings Plc agreed to buy as many as 200 high-density Boeing 737 jets in a deal worth a potential $22 billion at list prices.

 

Have a wonderful evening everyone.

 

Be magnificent!

Non-possession is allied to non-stealing.

Mahatma Gandhi

As ever,
 

Without discipline, there is no life at all.

          -Katharine Hepburn, 1907-2003

 

Carolann

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in 1888, George Eastman — one of the pioneers behind photography — earned a patent for roll film. He registered the trademark “Kodak,” which became one of the most well-known film brands in the 20th century.

September 4^th, 1781 – The city of Los Angeles was founded.

September 4^th, 2014 – Comedienne Joan Rivers dies.

Photos of the Day

The Duke and Duchess of Devonshire look at a piece by Chinese artist Xu Bing entitled ‘Tao Hua Yuan: A Lost Village Utopia’ during the Beyond Limits selling exhibition at Chatsworth House in central England. Darren Staples/Reuters

The Turanor PlanetSolar catamaran, the world’s largest solar-powered boat, travels on the Venetian Lagoon in Venice. Manuel Silvestri/Reuters

Market Closes for September 4^th, 2014    

Market Index	Close	Change
Dow Jones	17069.58	-8.70
		-0.05%
S&P 500	1997.65	-3.07   -0.15%
NASDAQ	4526.289	-10.276   -0.22%
TSX	15576.79	-80.84
		-0.52%

International Markets

Market Index	Close	Change
NIKKEI	15676.18	-52.17
		-0.33%
HANG SENG	25297.92	-20.03
		-0.08%
SENSEX	27085.93	-54.01
		-0.20%
FTSE 100	6877.97	+4.39
		+0.06%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.124	2.083
CND. 30 Year Bond	2.667	2.630
U.S.    10 Year Bond	2.4515	2.3962
U.S. 30 Year Bond	3.2090	3.1419

Currencies

BOC Close	Today	Previous
Canadian $	0.91932	0.91845
US $	1.08775	1.08879
Euro Rate 1 Euro=		Inverse
Canadian $	1.40716	0.71065
US $	1.29364	0.77301

Commodities

Gold	Close	Previous
London Gold Fix	1261.40	1269.60
Oil	Close	Previous
WTI Crude Future	94.45	95.54

Market Commentary:

Canada

By Eric Lam

     Sept. 4 (Bloomberg) — Canadian stocks fell, retreating from an all-time high, as gold and oil slumped after the European Central Bank unexpectedly cut interest rates and announced a bond-buying program.

     Manulife Financial Corp. dropped 1.4 percent after agreeing to purchase the Canadian operations of Standard Life Plc for about C$4 billion ($3.7 billion). Alimentation Couche-Tard Inc. gained 3.5 percent for a third straight advance.

     The Standard & Poor’s/TSX Composite Index fell 80.84 points, or 0.5 percent, to 15,576.79 at 4 p.m. in Toronto. The gauge closed at a record 15,657.63 yesterday.

     The Canadian equities benchmark has surged 14 percent this year, making it the second-best performer among developed equity markets behind Denmark. Trading volume in the S&P/TSX was 9 percent higher than the 30-day average today.

     The ECB cut interest rates and will start buying assets, easing the flow of funding for the region’s economy while holding back for now on larger-scale action. In committing cash to the market for asset-backed securities, Mario Draghi is making good on his pledge to help rekindle an asset class that can funnel loans to the real economy and ease funding conditions for banks.

     Manulife, Canada’s largest life insurer, slipped 1.4 percent to C$22.05, the biggest drop in a month. The firm’s acquisition of Standard Life’s Canadian business will enhance the company’s ability to increase its dividend and add 3 cents annually to earnings per share over the next three years, Manulife Chief Executive Officer Donald Guloien said on a conference call yesterday.

     Detour Gold Corp. sank 4.9 percent to C$12.09 and Semafo Inc. dropped 7.4 percent to C$4.51. Gold for December delivery lost 0.6 percent to $1,263.10 an ounce in New York. Silver Standard Resources Inc. plunged 8.6 percent to C$8.75.

     Painted Pony Petroleum Ltd. decreased 6.2 percent to C$13.26 to pace declines in the S&P/TSX Energy Index. Crude for October delivery dropped 1.1 percent in New York as refineries reduced operating rates.

     Couche-Tard climbed 3.5 percent to C$36.70, extending a record, after CIBC World Markets Inc. analyst Perry Caicco raised his rating for the convenience store operator to sector outperform, the equivalent of a buy. He has a 12-month price target of C$44 for Couche-Tard.

US

By Joseph Ciolli

     Sept. 4 (Bloomberg) — U.S. stocks fell a third day, giving the Standard & Poor’s 500 Index its longest slump since June, as energy producers sank with oil prices to overshadow new stimulus from the European Central Bank.

     Energy shares sank 1.3 percent for the biggest drop among the 10 main S&P 500 groups, as crude fell 1.1 percent in New York. Chevron Corp. and Exxon Mobil Corp. each lost 0.8 percent to pace declines in the Dow Jones Industrial Average. PVH Corp. surged 9.6 percent after the owner of the Calvin Klein clothing brand posted profit that topped estimates. Fastenal Co. rose 4 percent after reporting a sales increase.

     The S&P 500 dropped 0.2 percent to 1,997.65 at 4 p.m. in New York. The Dow lost 8.7 points to 17,069.58. Both gauges earlier climbed to intraday records. More than 5.6 billion shares changed hands on U.S. exchanges today, 1.8 percent above the three-month average.

     “The market is kind of tired,” Walter Todd, who oversees about $1 billion as chief investment officer for Greenwood, South Carolina-based Greenwood Capital Associates LLC, said in a phone interview. “We saw such a quick bounce off the 1,900 level in early August straight up to a new high. In the very near-term, you’ve got a variety of headwinds and exhaustion around the move higher.”

     The S&P 500 has fallen 0.3 percent in the past three days after ending last month at a record. The index gained 3.8 percent in August, the biggest increase since February, and topped 2,000 for the first time.

     The ECB cut interest rates and will start buying assets, boosting the flow of funding for the euro-area economy while stopping short of broad-based quantitative easing. The move boosted European stocks and sent two-year note yields below zero in eight countries.

     The U.S. equity gauge slipped yesterday as Apple Inc. dropped after a competitor unveiled new products and amid conflicting reports about progress on a peace plan for Ukraine.

     The country’s ’s eastern provinces teetered between war and peace as President Petro Poroshenko moved to halt the combat and pro-Russian rebels sought to consolidate gains made in more than five months of fighting.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, climbed 2.3 percent today to 12.64 for a third day of gains and the longest winning streak since Aug. 1. The gauge lost 29 percent last month, the biggest drop in almost three years.

     U.S. data today showed service providers expanded in August at the fastest pace in nine years, a sign of growing momentum in the broadest sector of the economy. Applications for unemployment benefits in the were little changed last week, while a separate report indicated firms added fewer jobs in August than estimated. The Labor Department’s monthly jobs report is due tomorrow.

 

Have a wonderful evening everyone.

 

Be magnificent!

It is this desire to express himself that leads him to search for riches and power.

But he must understand that to accumulate material wealth is not to find this fulfillment.

What brings him back to himself is the interior light, and not the exterior objects.

 

Rabindranath Tagore

As ever,

 

Carolann

 

Be yourself.  The world worships the original.

                  -Ingrid Bergman, 1915-1982

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in 1888, George Eastman — one of the pioneers behind photography — earned a patent for roll film. He registered the trademark “Kodak,” which became one of the most well-known film brands in the 20th century.

September 4^th, 1781 – The city of Los Angeles was founded.

September 4^th, 2014 – Comedienne Joan Rivers dies.

Photos of the Day

The Duke and Duchess of Devonshire look at a piece by Chinese artist Xu Bing entitled ‘Tao Hua Yuan: A Lost Village Utopia’ during the Beyond Limits selling exhibition at Chatsworth House in central England. Darren Staples/Reuters

The Turanor PlanetSolar catamaran, the world’s largest solar-powered boat, travels on the Venetian Lagoon in Venice. Manuel Silvestri/Reuters

Market Closes for September 4^th, 2014    

Market Index	Close	Change
Dow Jones	17069.58	-8.70
		-0.05%
S&P 500	1997.65	-3.07   -0.15%
NASDAQ	4526.289	-10.276   -0.22%
TSX	15576.79	-80.84
		-0.52%

International Markets

Market Index	Close	Change
NIKKEI	15676.18	-52.17
		-0.33%
HANG SENG	25297.92	-20.03
		-0.08%
SENSEX	27085.93	-54.01
		-0.20%
FTSE 100	6877.97	+4.39
		+0.06%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.124	2.083
CND. 30 Year Bond	2.667	2.630
U.S.    10 Year Bond	2.4515	2.3962
U.S. 30 Year Bond	3.2090	3.1419

Currencies

BOC Close	Today	Previous
Canadian $	0.91932	0.91845
US $	1.08775	1.08879
Euro Rate 1 Euro=		Inverse
Canadian $	1.40716	0.71065
US $	1.29364	0.77301

Commodities

Gold	Close	Previous
London Gold Fix	1261.40	1269.60
Oil	Close	Previous
WTI Crude Future	94.45	95.54

Market Commentary:

Canada

By Eric Lam

     Sept. 4 (Bloomberg) — Canadian stocks fell, retreating from an all-time high, as gold and oil slumped after the European Central Bank unexpectedly cut interest rates and announced a bond-buying program.

     Manulife Financial Corp. dropped 1.4 percent after agreeing to purchase the Canadian operations of Standard Life Plc for about C$4 billion ($3.7 billion). Alimentation Couche-Tard Inc. gained 3.5 percent for a third straight advance.

     The Standard & Poor’s/TSX Composite Index fell 80.84 points, or 0.5 percent, to 15,576.79 at 4 p.m. in Toronto. The gauge closed at a record 15,657.63 yesterday.

     The Canadian equities benchmark has surged 14 percent this year, making it the second-best performer among developed equity markets behind Denmark. Trading volume in the S&P/TSX was 9 percent higher than the 30-day average today.

     The ECB cut interest rates and will start buying assets, easing the flow of funding for the region’s economy while holding back for now on larger-scale action. In committing cash to the market for asset-backed securities, Mario Draghi is making good on his pledge to help rekindle an asset class that can funnel loans to the real economy and ease funding conditions for banks.

     Manulife, Canada’s largest life insurer, slipped 1.4 percent to C$22.05, the biggest drop in a month. The firm’s acquisition of Standard Life’s Canadian business will enhance the company’s ability to increase its dividend and add 3 cents annually to earnings per share over the next three years, Manulife Chief Executive Officer Donald Guloien said on a conference call yesterday.

     Detour Gold Corp. sank 4.9 percent to C$12.09 and Semafo Inc. dropped 7.4 percent to C$4.51. Gold for December delivery lost 0.6 percent to $1,263.10 an ounce in New York. Silver Standard Resources Inc. plunged 8.6 percent to C$8.75.

     Painted Pony Petroleum Ltd. decreased 6.2 percent to C$13.26 to pace declines in the S&P/TSX Energy Index. Crude for October delivery dropped 1.1 percent in New York as refineries reduced operating rates.

     Couche-Tard climbed 3.5 percent to C$36.70, extending a record, after CIBC World Markets Inc. analyst Perry Caicco raised his rating for the convenience store operator to sector outperform, the equivalent of a buy. He has a 12-month price target of C$44 for Couche-Tard.

US

By Joseph Ciolli

     Sept. 4 (Bloomberg) — U.S. stocks fell a third day, giving the Standard & Poor’s 500 Index its longest slump since June, as energy producers sank with oil prices to overshadow new stimulus from the European Central Bank.

     Energy shares sank 1.3 percent for the biggest drop among the 10 main S&P 500 groups, as crude fell 1.1 percent in New York. Chevron Corp. and Exxon Mobil Corp. each lost 0.8 percent to pace declines in the Dow Jones Industrial Average. PVH Corp. surged 9.6 percent after the owner of the Calvin Klein clothing brand posted profit that topped estimates. Fastenal Co. rose 4 percent after reporting a sales increase.

     The S&P 500 dropped 0.2 percent to 1,997.65 at 4 p.m. in New York. The Dow lost 8.7 points to 17,069.58. Both gauges earlier climbed to intraday records. More than 5.6 billion shares changed hands on U.S. exchanges today, 1.8 percent above the three-month average.

     “The market is kind of tired,” Walter Todd, who oversees about $1 billion as chief investment officer for Greenwood, South Carolina-based Greenwood Capital Associates LLC, said in a phone interview. “We saw such a quick bounce off the 1,900 level in early August straight up to a new high. In the very near-term, you’ve got a variety of headwinds and exhaustion around the move higher.”

     The S&P 500 has fallen 0.3 percent in the past three days after ending last month at a record. The index gained 3.8 percent in August, the biggest increase since February, and topped 2,000 for the first time.

     The ECB cut interest rates and will start buying assets, boosting the flow of funding for the euro-area economy while stopping short of broad-based quantitative easing. The move boosted European stocks and sent two-year note yields below zero in eight countries.

     The U.S. equity gauge slipped yesterday as Apple Inc. dropped after a competitor unveiled new products and amid conflicting reports about progress on a peace plan for Ukraine.

     The country’s ’s eastern provinces teetered between war and peace as President Petro Poroshenko moved to halt the combat and pro-Russian rebels sought to consolidate gains made in more than five months of fighting.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, climbed 2.3 percent today to 12.64 for a third day of gains and the longest winning streak since Aug. 1. The gauge lost 29 percent last month, the biggest drop in almost three years.

     U.S. data today showed service providers expanded in August at the fastest pace in nine years, a sign of growing momentum in the broadest sector of the economy. Applications for unemployment benefits in the were little changed last week, while a separate report indicated firms added fewer jobs in August than estimated. The Labor Department’s monthly jobs report is due tomorrow.

 

Have a wonderful evening everyone.

 

Be magnificent!

It is this desire to express himself that leads him to search for riches and power.

But he must understand that to accumulate material wealth is not to find this fulfillment.

What brings him back to himself is the interior light, and not the exterior objects.

 

Rabindranath Tagore

As ever,

 

Carolann

 

Be yourself.  The world worships the original.

                  -Ingrid Bergman, 1915-1982

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

HERE

…Now it is September
and I am there, between
the silhouette of broken fences
and weeds with yellow hair
seizing their own piece of buried sun.
Rain streams down my face.
A poplar breathes.
Over the only house I can see.
Burned and gutted…

      Lawrence Joseph

Photos of the Day

A police officer walks past a Scout Specialist Vehicle (r.) and a Foxhound armoured vehicle on the fairway at Celtic Manor golf club near Newport in Wales. Celtic Manor will host the NATO summit which starts tomorrow. Andrew Winning/Reuters

The Statue of Liberty is seen through the sails of a boat along the southern tip of Manhattan in New York. The temperature hit 92 degrees fahrenheit in Central Park today for the first time in 2014. Brendan McDermid/Reuters

Market Closes for September 3^rd, 2014    

Market Index	Close	Change
Dow Jones	17078.28	+10.72
		+0.06%
S&P 500	2000.72	-1.56   -0.08%
NASDAQ	4572.566	-25.622   -0.56%
TSX	15657.63	+38.55
		+0.25%

International Markets

Market Index	Close	Change
NIKKEI	15728.35	+59.75
		+0.38%
HANG SENG	25317.95	+568.93
		+2.30%
SENSEX	27139.94	+120.55
		+0.45%
FTSE 100	6873.58	+44.41
		+0.65%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.083	2.093
CND. 30 Year Bond	2.630	2.639
U.S.    10 Year Bond	2.3962	2.4211
U.S. 30 Year Bond	3.1419	3.1761

Currencies

BOC Close	Today	Previous
Canadian $	0.91845	0.91486
US $	1.08879	1.09306
Euro Rate 1 Euro=		Inverse
Canadian $	1.43151	0.69856
US $	1.31477	0.76059

Commodities

Gold	Close	Previous
London Gold Fix	1269.60	1265.61
Oil	Close	Previous
WTI Crude Future	95.54	92.88

Market Commentary:

Canada

By Eric Lam

     Sept. 3 (Bloomberg) — Canadian stocks rose to a record, as the central bank left interest rates unchanged and global equities rallied after talks on a cease-fire advanced between Russia and Ukraine.

     Alimentation Couche-Tard Inc. climbed 6.7 percent to a record after agreeing to sell its aviation fuel business. Canadian Energy Services & Technology Corp. and Pembina Pipeline Corp. rallied more than 2.5 percent as crude in New York rose from the lowest price since January.

     The Standard & Poor’s/TSX Composite Index rose 38.55 points, or 0.3 percent, to 15,657.63 at 4 p.m. in Toronto, a record close.

     The Canadian equities benchmark has surged 15 percent this year, making it the second-best performer among developed equity markets behind Denmark. Trading volume in the S&P/TSX was 20 percent above the 30-day average today.

     Russian President Vladimir Putin and his Ukrainian counterpart Petro Poroshenko have agreed on a “cease-fire regime” and they reached a mutual understanding on the steps toward peace, Poroshenko said on his website.

     The MSCI All-Country World Index, which includes both emerging and developed markets, rallied 0.4 percent to near an all-time high.

     Canadian Energy Services added 2.8 percent to C$10.90 and Pembina rose 2.6 percent to C$52.77 as energy producers climbed 0.2 percent as a group. Crude for October delivery advanced 2.9 percent to settle at $95.54 a barrel in New York. Brent crude rebounded from a 16-month low.

     Alimentation Couche-Tard jumped 6.7 percent to C$35.45, the biggest gain in more than two years. The convenience store and gas-station operator reported better-than-expected first-quarter earnings and raised its dividend.

     Lightstream Resources Ltd. fell 1 percent to C$6.08 after agreeing to sell conventional oil assets to Crescent Point Energy Corp. Crescent Point dropped 3.1 percent to C$43.17.

     The Bank of Canada maintained its policy interest rate at 1 percent, extending the country’s rate pause to four years, and remained neutral on his next move, due to slack in the economy that will keep inflation in check. The decision from Ottawa was expected by all 18 economists in a Bloomberg News survey.

     Toronto-Dominion Bank climbed 0.7 percent to C$57.72 and Bank of Montreal rose 0.5 percent to C$85.03 to extend a record as shares of the nation’s largest lenders advanced a third day.

US

By Elena Popina and Joseph Ciolli

     Sept. 3 (Bloomberg) — The Nasdaq Composite Index fell as Apple Inc. tumbled while investors assessed the prospects for a resolution to the conflict in Ukraine. Emerging-market stocks rallied and the ruble jumped with oil prices.

     The Nasdaq Composite lost 0.6 percent at 4 p.m. in New York, as Apple tumbled 4.2 percent. The Standard & Poor’s 500 Index fell 0.1 percent to 2,000.72, erasing gains after reaching an all-time high. The MSCI Emerging Market Index advanced 1.3 percent to its highest level in three years, and the Stoxx Europe 600 Index rose 0.7 percent to the highest since July 4. Russia’s ruble strengthened 1.6 percent and Brent oil rose 2.4 percent.

     Russian President Vladimir Putin outlined a peace plan for Ukraine after agreeing with his Ukrainian counterpart Petro Poroshenko on steps toward a cease-fire in the conflict. A measure of services activity in the euro zone dropped more than forecast, adding to speculation that European Central Bank President Mario Draghi will announce additional stimulus. U.S.factory orders expanded in July and a private gauge showed non-  manufacturing activity in China jumped in August.

     “The pop this morning was a very small sense that there is some positive movement out of Russia and Ukraine,” Kevin Caron, who helps oversee $170 billion at Stifel Nicolaus & Co. in Florham Park, New Jersey, said in a phone interview. “But on second look most people are realizing that not too much has changed there.”

     Global equities rallied early in the day amid signs of easing tensions in Ukraine. Putin called for an end to the rebels’ offensive in the country’s easternmost regions and urged the withdrawal of the Ukrainian military from residential areas as part of a seven-point proposal he presented today in Ulaanbaatar, Mongolia.

     Ukrainian Prime Minister Arseniy Yatsenyuk dismissed Putin’s peace plan as “window dressing for the international community ahead of the NATO summit” and a ploy to duck sanctions. Putin’s “true plan is to ruin Ukraine and restore the Soviet Union,” Yatsenyuk said in an e-mailed statement.

     “The cease-fire in Ukraine is very important,” said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank AG in Bonn. “People are beginning to wonder whether there will finally be a conclusion to the crisis, and if investors can focus on other factors, like economic indicators and central- bank policy.”

     The ruble strengthened the most since March against the dollar, after finishing yesterday at its lowest level since at least 2003. The Micex Index jumped 3.5 percent, its biggest gain in almost four months. The Ukrainian Equities Index climbed 1 percent.                         

     Treasuries erased losses as investors continued to seek a haven in U.S. government securities. The rate on 10-year Treasuries fell two basis points to 2.40 percent, after touching 2.47 percent, its highest level since Aug. 13.

     The S&P 500 slipped from a record yesterday, after gaining 3.8 percent in August to breach the 2,000 level for the first time on bets that the Federal Reserve will keep interest rates low even as the economy shows signs of picking up.

     The Fed said today the U.S. economy continued to expand during the summer, with none of the country’s regions experiencing a shift in the pace of growth. Trends in employment, wages and prices were little changed during the July-August period, according to the Beige Book survey released today based on reports from the 12 regional banks in the Fed system. Policy makers will meet Sept. 16-17.                        

     Data today showed factory goods orders rose 10.5 percent in July, the largest gain since records began in 1992.

     The U.S. economy expanded more than previously forecast in the second quarter, propelled by the biggest gain in business investment in more than two years, the Commerce Department reported last month. A Labor Department report on Sept. 5 will show payrolls rose by more than 200,000 in August for a seventh straight month, a Bloomberg survey of economists showed.

     The ECB and the Bank of Japan update monetary policy tomorrow amid speculation over the outlook for stimulus after disappointing economic reports.

     Technology shares in the S&P 500 slumped 0.7 percent as a group. Apple sank 4.2 percent, the most since January, after rival Samsung Electronics Co. introduced new smartphones and the company faced criticism following the theft of celebrity photos.

     Apple is set to unveil new iPhones, a wearable device and a mobile-payments system at an event on Sept. 9, people with knowledge of the matter have said. Pacific Crest Securities LLC said it would likely cut Apple’s outperform rating unless the event shows “massive incremental profit opportunities.”

     “Apple stock’s had a pretty strong move in the last several months,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in an interview. “A lot of positives from the iPhone launch are built into the stock price at these levels. People are merely taking profits.”

     Apple had rallied in 15 of the previous 17 sessions, adding 9.3 percent since Aug. 7 to reach a record close of $103.30 yesterday.

     The Bloomberg Dollar Spot Index slipped 0.2 percent, after three days of gains, as the U.S. currency weakened against most of its major counterparts. It fell the most versus Australia’s dollar.

     Brent oil rose 2.4 percent to $102.77 a barrel, rebounding from its lowest closing price since May 2013, on speculation cease-fire talks between Russia and Ukraine will ease sanctions against the biggest energy exporter. West Texas Intermediate soared 2.9 percent to $95.54 a barrel.

     Gold climbed 0.4 percent to $1,270.30 an ounce. Palladium declined to the lowest in almost two weeks after climbing to a 13-year high yesterday.

     The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong jumped 3.2 percent to its highest level this year after a report showed services activity accelerated in the world’s second-largest economy. The Shanghai Composite Index rose 1 percent.
 

Have a wonderful evening everyone.

 

Be magnificent!

If the recognized leaders of mankind who have control over the engines of destructions

were wholly to renounce their use, with full knowledge of its implications, permanent peace can be obtained.

This is clearly impossible without the Great Powers of the earth renouncing their imperialistic design.

This again seems impossible without great nations ceasing to believe in soul-destroying competition

and to desire to multiply wants and, therefore, increase their material possessions.

 

Mahatma Gandhi

As ever,

 

Carolann

 

The wisest men follow their own direction.

                   -Euripides, 480 BC-406 BC

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

Keith Jarrett and Charlie Haden released a CD in June entitled Last Dance.  It is was recorded at Jarret’s home studio and features Jarrett on piano and Charlie Haden on double bass.  It is very beautiful with intimate renderings of classics such as It Might As Well Be Spring, Every Time We Say Goodbye, Round Midnight, Goodbye.  More poignant because Charlie Haden died on July 11^th, 2014,in Los Angeles, only a month after the release of this inspired creation.  Pick it up, you’ll be happy that you did, I’m sure.

James Adams, in today’s Globe & Mail,  reminds us of an historic event that took place on this day:

A Moment In Time: September 2, 1666, Great Fire of London Starts In A Bakery

Great events often arise from small causes.  Take the Great Fire of London: It began on a warm, dry Sunday morning when embers from the ovens of the King’s baker ignited a stretch of houses tightly packed along Pudding Lane near London Bridge.  Most houses in the city of 500,000 were made of wood and there was no fire department, so when a strong east wind arose, the flames spread rapidly, consuming more than 70 per cent of the city before being extinguished on Sept. 5.  Tens of thousands were left homeless, yet the official death toll was fewer than 10 people.  Hopes that the conflagration would result in a new grid street system were dashed when Charles II decided the old, convoluted routes should be retained.  But Christopher Wren got to design 52 churches, including St. Paul’s Cathedral completed in 1711.

Photos of the Day
Fountains of lava up to 200 feet high spurt from a fissure in the ground on the north side of the Bardarbunga volcano in Iceland. The alert warning for the area surrounding Iceland’s Bardarbunga volcano remained at orange, indicating that it is showing increased unrest with high potential for an explosive eruption. Stefano Di Nicolo/AP

A Hindu devotee carries an idol of elephant-headed god Ganesha for immersion in the Arabian Sea, during the Ganesh Chaturti festival in Mumbai, India. The 10-day-long festival celebrates the birthday of the Hindu god. Rajanish Kakade/AP

Market Closes for September 2^nd, 2014    

Market Index	Close	Change
Dow Jones	17067.56	-30.89
		-0.18%
S&P 500	2002.28	-1.09   -0.05%
NASDAQ	4598.188	+17.916   +0.39%
TSX	15619.08	-6.65
		-0.04%

International Markets

Market Index	Close	Change
NIKKEI	15668.60	+192.00
		+1.24%
HANG SENG	24749.02	-3.07
		-0.01%
SENSEX	27019.39	+151.84
		+0.57%
FTSE 100	6829.17	+3.86
		+0.06%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.093	1.995
CND. 30 Year Bond	2.639	2.556
U.S.    10 Year Bond	2.4211	2.3431
U.S. 30 Year Bond	3.1761	3.0792

Currencies

BOC Close	Today	Previous
Canadian $	0.91486	0.91935
US $	1.09306	1.08773
Euro Rate 1 Euro=		Inverse
Canadian $	1.43552	0.69661
US $	1.31330	0.76144

Commodities

Gold	Close	Previous
London Gold Fix	1265.61	1287.81
Oil	Close	Previous
WTI Crude Future	92.88	95.96

Market Commentary:

Canada

By Eric Lam

     Sept. 2 (Bloomberg) — Canadian stocks were little changed, after closing at a record on Aug. 29, as a slump in gold and crude producers offset a rally among banks.

     Detour Gold Corp. and Goldcorp Inc., the largest gold producer by market value, retreated at least 4.1 percent as gold fell to a two-month low with a stronger dollar. Suncor Energy Inc. and Canadian Natural Resources Ltd. declined more than 1.5 percent. Bank of Montreal and National Bank of Canada climbed to all-time highs as financial stocks advanced a second day.

     The Standard & Poor’s/TSX Composite Index fell 6.65 points, or less than 0.1 percent, to 15,619.08 at 4 p.m. in Toronto, paring a steeper decline in afternoon trading. The market was closed yesterday for the Labor Day holiday.

     Detour Gold dropped 5 percent to C$13 and Goldcorp tumbled 4.1 percent to C$29.27, the biggest drop in five months. Raw- materials shares slumped 1.6 percent as a group to the lowest in seven weeks. The Canadian equities benchmark has surged 15 percent this year, making it the second-best performer among developed equity markets behind Denmark. Trading volume in the S&P/TSX was 9.8 percent above the 30-day average today.

     Gold for December delivery decreased 1.7 percent to settle at $1,265 an ounce in New York, the lowest since June. The dollar reached a seven-month high against 10 major currencies.

     Athabasca Oil Corp. sank 4 percent to C$7.60, snapping a six-day gain after closing an agreement with PetroChina Co. Aug. 29 to sell the rest of its Dover oil-sands project for C$1.18 billion ($1.08 billion). The deal ended weeks of speculation about whether the Chinese company would pay.

     Suncor lost 1.5 percent to C$43.67 and Canadian Natural Resources fell 2.6 percent to C$46.17 as crude for October delivery declined 3.2 percent to $92.88 a barrel in New York.

     The Purchasing Managers’ Index in Europe fell to 50.7 in August from 51.8 in July, London-based Markit Economics said yesterday. China’s manufacturing slowed more than estimated last month, while in the U.S., the Institute for Supply Management’s index showed expansion at the fastest pace in three years.

     Canadian National Railway Co. advanced 1.3 percent to C$79.10, as the railway operator’s market capitalization of C$64.7 billion eclipsed Suncor’s C$64 billion for the fourth- largest in Canada.

     Bombardier Inc. decreased 0.6 percent to C$3.64, the lowest level in a month, after Goldman Sachs Group Inc. analyst Noah Poponak said the aircraft manufacturer may see “inevitable” delays for its CSeries jet.

US

By Joseph Ciolli

     Sept. 2 (Bloomberg) — U.S. stocks fell, after the Standard & Poor’s 500 Index had its best month since February, as energy producers sank with the price of crude to offset data showing U.S. manufacturing expanded at the fastest pace in three years.

     Newfield Exploration Co. slid 2.1 percent as energy companies dropped 1.3 percent as a group. Delta Air Lines Inc. and Southwest Airlines Co. rallied at least 2.8 percent to lead carriers higher. Home Depot Inc. dropped 2 percent after saying it was investigating a possible data breach. Staples Inc. jumped 8.1 percent after Credit Suisse Group AG raised its rating on the stock.

     The S&P 500 lost 0.1 percent to 2,002.28 at 4 p.m. in New York, trimming earlier losses of 0.4 percent in afternoon trading. The Dow Jones Industrial Average slipped 30.89 points, or 0.2 percent, to 17,067.56. The Nasdaq Composite Index rose 0.4 percent, extending its highest level since March 2000. More than 5.7 billion shares changed hands on U.S. exchanges today, snapping an nine-day streak of volume below 5 billion shares.

     “The 2,000 area is still in play, and we’ve yet to move past it convincingly as it remains a speed bump in the short- term,” Joe Bell, senior equity analyst at Cincinnati-based Schaeffer’s Investment Research Inc., said by phone. “The manufacturing index was better than expected, but after that strong rally we had through much of August, the market is taking a bit of a breather.”

     The Institute for Supply Management’s manufacturing index unexpectedly climbed to 59, the highest level since March 2011, from July’s 57.1, the Tempe, Arizona-based group reported today. Readings greater than 50 indicate growth. The median forecast in a Bloomberg survey of economists was 57.

     The news on manufacturing was less positive overseas as U.K. factory growth slowed more than forecast last month and Italian manufacturing shrank as Europe suffered the fallout from weakening demand and mounting geopolitical risks. Output growth in China also slowed.

     The S&P 500 jumped 3.8 percent in August, climbing above 2,000 for the first time, amid improving economic data and speculation the Federal Reserve will keep interest rates low even as the economy shows signs of strengthening. The gauge has advanced 8.1 percent in 2014.

     The economy expanded more than previously forecast in the second quarter, propelled by the biggest gain in business investment in more than two years, the Commerce Department reported last month. A Labor Department report on Sept. 5 will show payrolls rose by more than 200,000 in August for a seventh- straight month, a Bloomberg survey of economists showed.

     “Overall, data supports the idea that the economy is accelerating going into the second half of the year, which certainly helps the equity markets,” Kevin Caron, who helps oversee $170 billion at Stifel Nicolaus & Co. in Florham Park, New Jersey, said in a phone interview. “You’ve had investors who have been increasingly encouraged by the direction of the data in the economy. They’ve been discouraged from holding assets in low-yielding, safer assets.”

     The S&P 500’s rally isn’t over and the gauge could jump 50 percent more by 2020 as the U.S. economic recovery heads for a record winning streak, according to Morgan Stanley.

     A slower though sustained period of growth could help the equity benchmark gauge peak near 3,000, according to a report today. The world’s largest economy, which began recovering in July 2009, may continue growing for five years or more, making it the longest period of expansion, Morgan Stanley said.

     In Ukraine, the government warned of an escalating conflict in its easternmost regions, even as U.S. President Barack Obama headed to eastern Europe to reassure NATO members. Ukraine and its allies in the U.S. and Europe accuse Russia of dispatching troops and backing separatist militias to open a new front in the conflict. Russia has repeatedly denied involvement in the unrest.

     “U.S. investors will try to focus on the economic agenda of the day, while geopolitical issues remain in the background,” Stephane Ekolo, chief European strategist at Market Securities in London, wrote in an e-mail.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, rose 2.3 percent to 12.25. The gauge lost 29 percent in August, the biggest monthly drop in almost three years.                         

     Five of the 10 main S&P 500 groups retreated, with energy stocks falling 1.3 percent to pace declines. Newfield Exploration and Noble Corp. slid at least 2.1 percent as the price of West Texas Intermediate crude slumped. Chevron Corp. lost 1.5 percent.

     Home Depot sank 2 percent to $91.15, halting a five-day rally. The largest home-improvement chain said it was working with banks and law enforcement to investigate the possible breach.

     The Nasdaq 100 Index rose 0.3 percent to a 14-year high as Regeneron Pharmaceuticals Inc., Staples and Tesla Motors Inc. rallied.

     Regeneron gained 2.6 percent to $359.50, an all-time high.  The cholesterol drug that the company is developing with Sanofi cut levels of heart disease-causing fat in four studies, according to results released over the weekend.

     Staples climbed 8.1 percent to $12.63, the highest since May. The world’s largest office-supply chain was raised to outperform from neutral at Credit Suisse.

     Tesla rose 5.4 percent to $284.12, an all-time high. A Stifel Nicolaus & Co. report cited the electric-car maker’s increasing production and said it may be worth $400 a share even before it starts making a lower-priced model.

     Dollar General Corp. added 0.6 percent to $64.36. The retailer said today that it raised its offer for smaller rival Family Dollar Stores Inc. to $80 a share in cash, compared with an initial $78.50 bid. Family Dollar Stores rose 0.5 percent to $80.22.

     Norwegian Cruise Line Holdings Ltd. surged 11 percent to $36.99 after agreeing to acquire Prestige Cruises International Inc. for about $3.03 billion. Prestige is owned by private equity firm Apollo Global Management LLC, which also holds a 20 percent stake in Norwegian.

     Compuware Corp. shares climbed 13 percent to $10.59. The company will be acquired by private equity firm Thoma Bravo LLC in a deal valued at $2.5 billion.

     Exelixis Inc. slumped 55 percent to $1.85. A trial for its cabozantinib treatment for prostate cancer failed to meet its aim of showing an increase in survival rates compared with another drug. The company said it will reduce its workforce by about 70 percent to focus its financial resources on other clinical trials for cabozantinib.

 

Have a wonderful evening everyone.

 

Be magnificent!

The noblest moral law

is that we should unremittingly work

for the good of mankind.

 

Mahatma Gandhi

As ever,

 

Carolann

 

A moment’s insight is worth a lifetime of experience.

          -Justice Oliver Wendell Holmes, 1841-1935

 

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

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7