Category: Events

Dear Friends,

Tangents:

A Recipe for Happiness?  My favorite chef in the world, Michelin-starred Joël Robuchon (his gastronomic temple is in Tokyo, but there are outposts around the globe, including Las Vegas) has teamed up with acupuncturist and neuropharmacologist Dr. Nadia Volf have produced a new cookbook, Food & Life, which transforms kitchen cupboards into medicine cabinets, highlighting the wellness that resides in everything from foie gras to the humble pea.  Combining his artistry with her scientific knowledge, the pair claims that meals can improve your health, energy and mood, and maybe even help you find love.  “It’s about what to eat at different times, when you feel one way or another.  When you are obsessed by a thought that torments you, eat endives and your obsession will go away,” Volf said.  “I see so many girls who comfort themselves after a heartbreak by eating Nutella and big portions of ice cream, but it doesn’t work.  They gain weight, and they don’t feel better.  The most beautiful thing to eat when you have heartbreak is turkey because turkey has the amino acid tryptophan, which is the basis of our hormone serotonin.  But the girls just don’t know that.”  Robuchon and Dr. Volk offer cures for many different ailments, including forgetfulness:  caviar, served with a poached egg, smoked salmon, crème fraiche and chives.

Photos of the Day

People Baroque-period costumes walk in the Friedenstein Castle during the opening of the Baroque Festival in Gotha, central Germany. Jens Meyer/AP

A boy wears a traditional costume as farmers drive their cows and goats during the annual Alpabzug near the eastern Swiss town of Gonten. Arnd Wiegmann/Reuter

Market Closes for August 29^th, 2014    

Market Index	Close	Change
Dow Jones	17098.45	+18.88
		+0.11%
S&P 500	2003.37	+6.63   +0.33%
NASDAQ	4580.273	+22.579   +0.50%
TSX	15625.73	+67.56
		+0.43%

International Markets

Market Index	Close	Change
NIKKEI	15424.59	-35.27
		-0.23%
HANG SENG	24742.06	+1.06
		—
SENSEX	26638.11	+77.96
		+0.29%
FTSE 100	6819.75	+13.95
		+0.20%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.995	1.997
CND. 30 Year Bond	2.556	2.559
U.S.    10 Year Bond	2.3431	2.3361
U.S. 30 Year Bond	3.0792	3.0744

Currencies

BOC Close	Today	Previous
Canadian $	0.91935	0.92075
US $	1.08773	1.08607
Euro Rate 1 Euro=		Inverse
Canadian $	1.42910	0.69974
US $	1.31384	0.76113

Commodities

Gold	Close	Previous
London Gold Fix	1287.81	1289.45
Oil	Close	Previous
WTI Crude Future	95.96	94.55

Market Commentary:

Canada

By Eric Lam

     Aug. 29 (Bloomberg) — Canadian stocks rose to a record, snapping a two-day loss as oil producers advanced with data showing the nation’s economic growth rebounded to the fastest in almost three years on rising exports.

     Canadian Energy Services & Technology Corp. increased 2.5 percent after agreeing to an acquisition. Bellatrix Exploration Ltd. and Bankers Petroleum Ltd. rallied more than 1.9 percent as crude posted the first weekly gain in more than a month. Toronto-Dominion Bank, the nation’s largest lender by assets, fell 0.4 percent to extend losses a second day after reporting earnings.

     The Standard & Poor’s/TSX Composite Index rose 67.56 points, or 0.4 percent, to 15,625.73 at 4 p.m. in Toronto. The benchmark Canadian equity gauge last closed at a high Aug. 26. The market will be closed on Sept. 1 for the Labor Day holiday.

     The Canadian index has advanced 1.9 percent this month, for a third straight gain. The S&P/TSX 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 in line with the 30-day average today as eight of 10 industries advanced.

     The Canadian economy rose at a 3.1 percent annualized pace from April to June, Statistics Canada said today in Ottawa, faster than the 2.7 percent economists forecast in a Bloomberg survey. Exports surged 17.8 percent on gains in automobiles, farm and forest products.

     Canadian Energy Services & Technology added 2.5 percent to C$10.82 after agreeing to buy the production and specialty chemical business assets of Southwest Treating Products LLC. Terms were not disclosed.

     Bellatrix Exploration added 2.3 percent to C$8.42 and Bankers Petroleum rose 1.9 percent to C$6.60 as West Texas Intermediate crude capped its first weekly gain in more than a month.

     Cameco Corp. rallied 1.2 percent to C$21.26, snapping a three-day loss as raw-materials stocks rose 0.9 percent as a group, the most in the S&P/TSX. The uranium producer prepared to shut down its McArthur River mine, the world’s largest source of the nuclear fuel due to a dispute with workers.

US

By Oliver Renick

     Aug. 29 (Bloomberg) — U.S. stocks rose, finishing the biggest monthly gain since February, amid improving economic data and speculation central banks will continue to spur growth.

     The Standard & Poor’s 500 Index added 0.3 percent to a record 2,003.37 as of 4 p.m. in New York today. The index jumped 3.8 percent this month, the best August performance since 2000.

     Economic reports showed consumer confidence unexpectedly rose in August, while consumer spending dropped in July for the first time in six months. Euro-area inflation slowed this month to the weakest rate since 2009, increasing pressure on the European Central Bank to add stimulus. American equity markets will be closed on Sept. 1 for the Labor Day holiday.

     With the U.S. headed into the Labor Day holiday weekend, the stock market has been experiencing the slowest trading in at least six years. Volume has been below 5 billion shares in each of the past eight days, the longest stretch in data compiled by Bloomberg going back to 2008.

     “Investors’ lack of exposure to equities is still what drives the market higher, along with valuations which aren’t stretched,” Paul Atkinson, head of North American equities at Aberdeen Asset Management Plc in Philadelphia, said in a phone interview. The firm oversees $551.4 billion.

     The Dow Jones Industrial Average climbed 18.88 points, or 0.1 percent, to 17,098.45. The Nasdaq Composite Index gained 0.5 percent to 4,580.27.                         

     U.S. household purchases decreased 0.1 percent after increasing 0.4 percent in June, Commerce Department figures showed. None of the 79 economists in a Bloomberg survey projected a decrease. Incomes climbed 0.2 percent, the smallest monthly advance this year.

     Consumer confidence unexpectedly rose in August, showing a brightening in Americans’ moods as the labor market  gains traction. The Thomson Reuters/University of Michigan final sentiment index rose to 82.5 from 81.8 in July. The median projection in a Bloomberg survey of economists called for 80.

     “You look through the data we’ve gotten this week, it’s strong, I think what the stock market’s getting is that this lfit is starting to help the consumer,” John Canally, chief economic strategist at Boston-based LPL Financial LLC, said via phone.

     In Europe, consumer prices rose 0.3 percent in August from a year earlier after a 0.4 percent increase in July, the statistics office in Luxembourg said. Unemployment remained at 11.5 percent in July, Eurostat said in a separate report. ECB President Mario Draghi said in a speech at a conference in Jackson Hole, Wyoming that inflation expectations have deteriorated in the euro area and signaled policy makers are ready to add fresh stimulus.

     “The ECB meeting is next week and Draghi kind of precommitted at Jackson Hole when he started talking about inflation being below their desired range,” Paul Zemsky, the New York-based head of multi-asset strategies at Voya Investment Management LLC, which oversees $213 billion, said by phone. “If they don’t do something different, global markets will be disappointed.”

     Avago Technologies Ltd., a semiconductor-device supplier, climbed 7.5 percent to $82.09 for the biggest gain in the S&P 500 after it reported earnings that topped estimates.

     Pacific Sunwear of California Inc., a clothing retailer, slid 9.6 percent to $2.08 after projecting losses in the third quarter that were deeper than analysts’ estimated.

     Veeva Systems Inc., the provider of cloud-based business services, jumped 20 percent to $29.97. It boosted its year-end earnings prediction and reported second-quarter earnings that beat estimates.

     Nabors Industries Ltd., the oil, gas and geothermal land drilling operator, gained 3.6 percent to $27.21, the most in two months. A Bloomberg Industries report yesterday showed it stand to benefit from exposure to Argentina shale development.

 

Have a fantastic Labour Day weekend everyone!
 

 

Be magnificent!

Unity is an intellectual concept.

On an emotional level unity is serenity, equality, and equilibrium.

Swami Prajnanpad

As ever,

 

Carolann

 

Measure not the work until the day’s out and the labor done.

                              –Elizabeth Barrett Browing, 1806-1861

 

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:

Today is the anniversary of Martin Luther King’s march on Washington on August 28th, 1963, for his famous “I have a dream…” speech.

In the end, we will remember not the words of our enemies, but the silence of our friends. –Martin Luther King.

Today is the feast of St. Augustine: Augustine, 354-430, is considered the greatest of Latin fathers.  He is distinguished by his zealous opposition to the heresies of his time and by his prolific writings, his best known works being his Confessions and De Civitate.

Photos of the Day

Performers dance during the closing ceremony of the 2014 Nanjing Youth Olympic Games in Nanjing, China. Aly Song/Reuters

Orix BlueWave second baseman Keiichi Hirano jumps over second base after forcing out Chiba Lotte Marines’ Daichi Suzuki in the sixth inning of their Pacific League professional baseball game in Kobe, western Japan. Kyodo News/AP

Market Closes for August 28^th, 2014    

Market Index	Close	Change
Dow Jones	17079.57	-42.44
		-0.25%
S&P 500	1996.74	-3.38   -0.17%
NASDAQ	4557.695	-11.926   -0.26%
TSX	15558.17	-44.48
		-0.29%

International Markets

Market Index	Close	Change
NIKKEI	15459.86	-74.96
		-0.48%
HANG SENG	24741.00	-177.75
		-0.71%
SENSEX	26638.11	+77.96
		+0.29%
FTSE 100	6805.80	-24.86
		-0.36%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.997	2.008
CND. 30 Year Bond	2.559	2.569
U.S.    10 Year Bond	2.3361	2.3573
U.S. 30 Year Bond	3.0744	3.1024

Currencies

BOC Close	Today	Previous
Canadian $	0.92075	0.92049
US $	1.08607	1.08638
Euro Rate 1 Euro=		Inverse
Canadian $	1.43191	0.69837
US $	1.31843	0.75848

Commodities

Gold	Close	Previous
London Gold Fix	1289.45	1283.00
Oil	Close	Previous
WTI Crude Future	94.55	93.88

Market Commentary:

Canada

By Eric Lam

     Aug. 28 (Bloomberg) — Canadian stocks fell the most in three weeks, joining a slump in global markets as the conflict in Ukraine deepened and banks declined after reporting earnings.

     Laurentian Bank of Canada slumped 3.3 percent after posting profit and revenue short of analysts’ estimates. Canadian Imperial Bank of Commerce retreated 2.2 percent as credit-card revenue declined. First Quantum Minerals Ltd. and Teck Resources Ltd. declined at least 1.6 percent as copper sank the most in more than four months. B2Gold Corp. and Goldcorp. Inc. rose as gold climbed to the highest in a week.

     The Standard & Poor’s/TSX Composite Index lost 44.48 points, or 0.3 percent, to 15,558.17 at 4 p.m. in Toronto, the biggest decline since Aug. 7. The benchmark Canadian equity gauge closed at a record 15,619.21 on Aug. 26.

     Laurentian Bank slid 3.3 percent to C$49.91, the biggest decline since December, as financial stocks retreated 0.8 percent as a group. Trading volume was 16 percent below the 30- day average.

     Canadian stocks have surged 14 percent this year, making the S&P/TSX the second-best performer among developed equity markets behind Denmark.

     CIBC lost 2.2 percent to C$103.23, the most in a year. Credit card revenue declined after the bank sold half of its Aerogold Visa portfolio to Toronto-Dominion Bank in December.

     Toronto-Dominion, Canada’s largest lender by assets, slipped 0.8 percent. The bank reported higher earnings from domestic consumer lending and investment banking.

     The MSCI All-World Index dropped 0.4 percent, snapping a three-day rally, as tensions increased in the conflict between Russia and Ukraine.

     Ukrainian President Petro Poroshenko called an emergency meeting to defend what he called a “de facto” Russian incursion after separatists gained ground in intensified fighting. The U.S. said Russia may be directing the attacks, falling short of calling it an invasion.

     The U.S. economy grew at a 4.2 percent annualized rate, up from an initial estimate of 4 percent and following a first- quarter contraction, data today showed. The median forecast of 77 economists surveyed by Bloomberg called for a 3.9 percent gain.

     Athabasca Oil Corp. advanced 2.7 percent to C$7.59 after PetroChina said it will pay the company for its stake in the Dover oil sands project soon, Reuters reported.

US

By Oliver Renick

     Aug. 28 (Bloomberg) — U.S. stocks fell, sending the Standard & Poor’s 500 Index below 2,000, as violence in Ukraine and disappointing retail earnings overshadowed data showing the economy expanded more than estimated.

     Williams-Sonoma Inc. tumbled 12 percent after its third- quarter earnings forecast missed analysts’ estimates. Abercrombie & Fitch Co. declined 4.8 percent as second-quarter sales fell more than analysts had projected. Guess? Inc. sank 8.8 percent after the retailer cut its annual earnings forecast. Signet Jewelers Ltd., which operates Zales and Kay Jewelers, climbed 7.7 percent after reporting earnings that beat estimates.

     The S&P 500 dropped 0.2 percent to 1,996.74 at 4 p.m. in New York, ending a three-day advance. The Dow Jones Industrial Average slid 42.44 points, or 0.3 percent, to 17,079.57. The Nasdaq 100 Index retreated 0.2 percent for the first loss in 12 sessions. About 4.2 billion shares changed hands on U.S.  exchanges, the lowest for a full day of trading this year.

     “Whenever you push through big levels like the 2,000 mark you get some profit-taking, which normal at this point, that’s a big milestone to push through,” Jeff Kravetz, the Phoenix-based regional investment director at US Bank’s Private Client Reserve, said via phone.

     The U.S. equity index has rebounded about 4.6 percent from a three-month low on Aug. 7 on speculation the Federal Reserve will keep interest rates low as the economy strengthens. The S&P 500 closed above 2,000 for the first time on Aug. 26.

     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. Gross domestic product rose at a 4.2 percent annualized rate, up from an initial estimate of 4 percent and following a first-quarter contraction, Commerce Department figures showed.

     Other reports showed contracts to purchase previously owned homes rose more than forecast in July. The number of Americans filing for unemployment benefits was little changed last week near the lowest level in seven year.

     “If you look at unemployment claims that should suggest we’ll get a very nice healthy payroll number next Friday,” Wilmer Stith, a Baltimore-based money manager at Wilmington Trust Investment Managers, said via phone. “This patchwork of broader and deeper economic expansion is well under way in the United States.”

     Russian President Vladimir Putin discussed in a phone call with Italian Prime Minister Matteo Renzi the need to halt the bloodshed in Ukraine, Putin’s office said in e-mailed statement. Ukrainian President Petro Poroshenko pledged to step up the country’s defenses against what he earlier called a “de facto”Russian incursion after separatists gained ground in intensified fighting.

     The five months of unrest have sparked the worst standoff between Russia and its former Cold War foes in two decades and unleashed sanctions on both sides. Violence surged a day after Putin and Poroshenko met in Minsk, Belarus. Putin hailed the talks as a step toward peace, though he said cease-fire terms weren’t discussed because Russia isn’t a party to the conflict.

     “These geopolitical events tend to be transitory, where the market may drop over the short-term but then tends to recover pretty quickly,” Bob Landry, executive director and portfolio manager at San Antonio-based USAA Investment Management Co., said via phone. He helps manage $22.3 billion.

     The U.S. stock market is seeing the slowest trading in at least six years as investors leave for vacation before Labor Day. Volume has been below 5 billion shares over the past eight days, the longest streak in data compiled by Bloomberg going back to 2008.

     “There’s going to be light volume going into a holiday regardless, but now you have these geopolitical concerns that are playing into that as well,” Landry said.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, rose for a second day, gaining 2.3 percent to 12.05. The gauge has lost 29 percent this month, poised for the biggest drop in two years.

     Signet jumped 7.7 percent to $116.37, the highest ever, after reporting second-quarter earnings that beat analysts’ estimates and predicted same store sales growth in the third quarter.

     Williams-Sonoma slid 12 percent to $65.93. The seller of cookware and home furnishings forecast third-quarter earnings of 58 cents to 63 cents a share. The average analyst projection in a Bloomberg survey was for 66 cents.

     Abercrombie fell 4.8 percent to $41.87. The company is struggling to compete with fast-fashion companies such as Forever 21 and Hennes & Mauritz AB, which have won over teens with their ability to react to trends quickly.

     Guess lost 8.8 percent to $23.38. Full-year adjusted profit will be $1.05 to $1.20 a share, lower than its May forecast of $1.40 to $1.60.

     Whole Foods Market Inc. slid 1.6 percent to $39.19. Kurt Frederick, an analyst at Wedbush Securities Inc., initiated coverage of the stock with a neutral rating.

     RadioShack Corp. shares jumped 31 percent, the third straight day of double-digit gains, to $1.43 on speculation that the company will get a rescue financing package that helps it stave off bankruptcy.

     Repros Therapeutics jumped 19 percent to $21.58, the highest since January, after data released yesterday showed the company’s testosterone treatment Androxal was superior to AbbVie’s on market topical gel, AndroGel, in secondary hypogonadism.
 

Have a wonderful evening everyone.

 

Be magnificent!

I do not know of any religion apart from human activity.

It provides a moral basis to all other activities which they would otherwise lack,

reducing life to a maze of ‘sound and fury signifying nothing.”

Mahatma Gandhi

As ever,

 

Carolann

 

Never put off until tomorrow what you can do the day after tomorrow.

                                                              -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:

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

Photos of the Day
A boogie boarder rides a wave at the wedge in Newport Beach, Calif. Southern California beachgoers experienced much higher than normal surf brought on by Hurricane Marie spinning off the coast of Mexico. Chris Carlson/AP

People take part in ‘Yoga On The Hill’ on Parliament Hill in Ottawa, Canada. Sean Kilpatrick/The Canadian Press/AP

Market Closes for August 27^th, 2014    

Market Index	Close	Change
Dow Jones	17122.01	+15.31
		+0.09%
S&P 500	2000.12	+0.10   —
NASDAQ	4569.621	-1.016   -0.02%
TSX	15602.65	-16.56
		-0.11%

International Markets

Market Index	Close	Change
NIKKEI	15534.82	+13.60
		+0.09%
HANG SENG	24918.75	-155.75
		-0.62%
SENSEX	26560.15	+117.34
		+0.44%
FTSE 100	6830.66	+7.90
		+0.12%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.008	2.044
CND. 30 Year Bond	2.569	2.603
U.S.    10 Year Bond	2.3573	2.3962
U.S. 30 Year Bond	3.1024	3.1623

Currencies

BOC Close	Today	Previous
Canadian $	0.92049	0.91292
US $	1.08638	1.09539
Euro Rate 1 Euro=		Inverse
Canadian $	1.43334	0.69767
US $	1.31937	0.75794

Commodities

Gold	Close	Previous
London Gold Fix	1283.00	1280.78
Oil	Close	Previous
WTI Crude Future	93.88	93.86

Market Commentary:

Canada

By Eric Lam

     Aug. 27 (Bloomberg) — Canadian stocks fell, retreating from a record, as declines in gold producers and Tim Hortons Inc. overshadowed gains at National Bank of Canada after it reported better-than-estimated third-quarter profit.

     Tim Hortons lost 2.6 percent to snap a three-day rally. Talisman Energy Inc. fell 5.1 percent after a Wall Street Journal report said talks to sell some of its assets to Repsol SA have stalled. National Bank of Canada jumped to a record after reporting rising profit on gains in its capital markets and wealth-management businesses.

     The Standard & Poor’s/TSX Composite Index lost 16.56 points, or 0.1 percent, to 15,602.65 at 4 p.m. in Toronto. The benchmark equity gauge closed at a record 15,619.21 yesterday.

     Trading in S&P/TSX stocks was 3.9 percent higher than the 30-day average. Canadian stocks have surged 15 percent this year, making the S&P/TSX the second-best performer among developed equity markets behind Denmark.

     Yamana Gold Inc. dropped 1.5 percent to C$9.02 and Eldorado Gold Corp. lost 1.3 percent to C$8.85 as raw-materials producers retreated 1 percent as a group. Six of 10 industries in the S&P/TSX fell.

     Gold for December delivery slipped 0.1 percent to settle at $1,283.40 an ounce in New York, after rallying the most in three weeks yesterday.

     National Bank of Canada jumped 3.1 percent to C$50.91, the biggest gain in three years, after the nation’s sixth-largest lender by assets bolstered its wealth-management business in the third quarter through takeovers including Winnipeg-based Wellington West Holdings Inc.

     Bank of Montreal, which reported rising profit yesterday, advanced 1.2 percent to C$83.14, a record. The stock is up 17 percent this year, the best performer among the nation’s largest banks.

     Tim Hortons lost 2.6 percent to C$86.42, retreating from a record. Some investors are either considering or already have sold their stakes in the coffee-and-doughnut chain after the stock’s 33 percent rally in the past three days on talks for a tie-up with Burger King.

     “The easy money’s been made on this stock,” said Brian Huen, managing director at Red Sky Capital Management Ltd. in Toronto. His firm sold its Tim Hortons shares yesterday.

US

By Lu Wang

     Aug. 27 (Bloomberg) — The rally that propelled the Standard & Poor’s 500 Index above a record 2,000 lost a little bit of momentum today.

     The S&P 500 rose 0.1 point to 2,000.12 at 4 p.m. in New York with about the same number of stocks rising as falling. About 4.2 billion shares changed hands across U.S. exchanges, the lowest volume since July 3, data compiled by Bloomberg show.

     “The market is not overly expensive, not cheap either,” Ethan Anderson, senior portfolio manager at Rehmann Financial in Grand Rapids, Michigan, said by phone. His firm oversees $1.5 billion. “In the absence of strong corporate earnings, you are not necessarily going to see a huge surge in equities over the next 12 months. But the little notch up, on a regular basis, you’re likely to see continue.”

     Global markets are surmounting crises in Ukraine, the Gaza Strip and Iraq as investors renew bets that stimulus will revive growth. Rallies from Brazil to Japan and the U.S. gauge’s first trip above 2,000 have sent the value of global equities to a record $66 trillion.

     The S&P 500 is up almost 5 percent since Aug. 7, boosted by speculation the Federal Reserve will keep interest rates low as the economy strengthens. European Central Bank President Mario Draghi has also signaled policy makers may consider introducing an asset-buying plan.

     The U.S. equity benchmark has seen gains in 11 of the past 14 days. It trades at 18 times the reported earnings of its companies, near the highest level since 2010.

     The Dow Jones Industrial Average added 15.31 points to 17,122.01 today. The Nasdaq Composite Index was little changed after a four-day rally. Among industries in the S&P 500, telephone and utility stocks had the biggest gains, while energy, financial and technology shares fell the most.

     “In the U.S., you’re seeing businesses do very well,” Doug Foreman, chief investment officer at Kayne Anderson Rudnick Investment Management in Los Angeles, said in a telephone interview. His firm oversees about $9 billion. “We’re in a situation where there are still some macro risks, but they’re overwhelmed by the micro, which is surprisingly good.”

      Tiffany & Co. added 1 percent after posting second-quarter profit that topped analysts’ estimates and raised its earnings forecast for the year as higher prices boosted revenue.

     Smith & Wesson Holding Corp. tumbled 14 percent after the gunmaker cut its full-year sales and profit forecast amid declining demand. Chico’s FAS Inc., a women’s clothing retailer, slumped 4.6 percent on lower-than-estimated sales.

     Michaels Cos. jumped 9.3 percent as the arts and crafts retailer reported second-quarter earnings that topped analysts’ estimates. Express Inc. increased 13 percent after the apparel chain raised its full-year profit forecast.

     Best Buy Co., the world’s largest electronics chain, rose 6.3 percent after posting second-quarter profit that topped analysts’ estimates, helped by lower costs.

     “U.S. markets continue to defy geopolitical worries,” Richard Hunter, the head of equities at Hargreaves Lansdown Plc in London, wrote in an e-mail. “Many of the blocks are in place for the equity markets to make further progress.”

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“In order to succeed, your desire for success should be greater than your fear of failure.” – Bill Cosby 

 

As ever,

 

Karen

 

 “The most wasted of all days is one without laughter” – e.e. cummings

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Journalist Gail Sheehy, 76, is author of 17 books.  Her latest is Daring: My Passages, a memoir.  She spoke to Marc Myers; this was printed in The Wall Street Journal  last weekend:

Back in 1968, when I was 30, my entire life blew up.  I had a life plan, and it collapsed for no rational reason.  I had been a newspaper reporter in New York but left the job to help editor Clay Felker start New York magazine.  My marriage was breaking up, and I was falling in love with Clay.  The song that carried me through those years and all stages of my life is Both Sides Now [by Joni Mitchell].

  I first heard the song in 1968, when Judy Collins version was a huge radio hit.  But when I heard Joni’s in 1969 on her album Clouds, it stopped me.  In her voice, I could hear the fragility of being a woman at that time along with hopefulness and an unwillingness to give up.

  Joni’s voice doesn’t sound cynical or put off by life.  She admits her confusion but still marvels at what she sees: “I’ve looked at clouds from both sides now / From up and down and still somehow / It’s cloud  illusions I recall / I really don’t know clouds at all.”  In ’69, after my divorce, I let go of my illusions about marriage.

  Over time, I’ve identified with different parts of the song.  In 1970, when I realized I could write magazine features in a whole new way, I was elated, and Joni’s line about “ice cream castles in the air”  resonated.  In my bachelor-girl 30s, her “moons and Junes and Ferris wheels” stood out.  In my flourishing 40s, I became a public figure, so I related to “but now it’s just another show / you leave ’em laughing when you go.”  When Clay finally proposed in 1984, I too felt “proud to say ‘I love you’ right out loud.”

  After Clay died in 2008, I was devastated.  I put on Joni’s version with strings from 2000 and heard a deeper voice full of sorrow and wine and cigarettes.  Eventually, I found my way out of that dark place and dared to love again.

  Today, I connect with Joni’s line, “Something’s lost but something’s gained in living every day.”  I’m looking forward to the next turn in my story line.

Listen to the song at WSJ.com/review.

On this day in 1920, Women’s Equality Day was established.  Women officially became part of the US constitution and given the right to vote.

Photos of the Day

Ecuador’s Tungurahua volcano erupts near Banos. Tungurahua, which means ‘Throat of Fire’ in the local Quechua language, has been active since 1999. Carlos Campania/Reuters

Katie Ledbetter sits in a hammock at the Mi Casa, Your Casa art installation at the High Museum in Atlanta. David Goldman/AP

Market Closes for August 26^th, 2014    

Market Index	Close	Change
Dow Jones	17106.70	+29.83
		+0.17%
S&P 500	2000.02	+2.10   +0.11%
NASDAQ	4570.637	+13.289   +0.29%
TSX	15619.21	+20.47
		+0.13%

International Markets

Market Index	Close	Change
NIKKEI	15521.22	-92.03
		-0.59%
HANG SENG	25074.50	-92.41
		-0.37%
SENSEX	26442.81	+5.79
		+0.02%
FTSE 100	6822.76	+47.51
		+0.70%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.044	2.042
CND. 30 Year Bond	2.603	2.598
U.S.    10 Year Bond	2.3962	2.3820
U.S. 30 Year Bond	3.1623	3.1314

Currencies

BOC Close	Today	Previous
Canadian $	0.91292	0.91044
US $	1.09539	1.09837
Euro Rate 1 Euro=		Inverse
Canadian $	1.44236	0.69331
US $	1.31676	0.75944

Commodities

Gold	Close	Previous
London Gold Fix	1280.78	1276.69
Oil	Close	Previous
WTI Crude Future	93.86	95.10

Market Commentary:

Canada

By Joseph Ciolli

     Aug. 26 (Bloomberg) — Canadian stocks extended a record as crude and gold prices advanced, while Tim Hortons Inc. surged for a second day on a takeover.

     Materials stocks climbed the most in the benchmark index as First Quantum Minerals Ltd. and Eldorado Gold Corp. rose at least 1.2 percent amid an advance in gold. Tim Hortons gained 8.1 percent after Burger King Worldwide Inc. agreed to acquire the company. Bank of Nova Scotia declined 2.4 percent after reporting earnings.

     The Standard & Poor’s/TSX Composite Index increased 20.47 points, or 0.1 percent, to a record 15,619.21 at 4 p.m. in Toronto. The gauge has rallied 15 percent this year.

     Nuvista Energy Ltd. climbed 7.8 percent to C$11.75 and Canyon Services Group Inc. rose 3.7 percent to C$16.64. Seven of 10 industries in the benchmark Canadian equity gauge advanced.

     The S&P/TSX Gold Index climbed 1.9 percent, rebounding from a five-day skid that pushed it to a one-month low, as gold futures increased 0.5 percent. OceanaGold Corp. gained 1.7 percent to C$2.92, while B2Gold Corp. added 4.2 percent to C$2.74.

     Tim Hortons, Canada’s biggest seller of coffee and doughnuts, soared 8.1 percent to C$88.71 after rallying 19 percent yesterday. Burger King agreed to purchase it for about C$12.5 billion ($11.4 billion) in a deal that creates the third- largest fast-food company.

     The deal moves Burger King’s headquarters to Canada, and gives the company access to a coffee brand with a cult following, which may help boost breakfast sales. The new combined business would create a fast-food network with $23 billion in sales, including franchisees, and more than 18,000 restaurants in 100 countries.

     Bank of Nova Scotia fell 2.4 percent to C$72.45 after third-quarter profit from international lending missed some analysts’ estimates. The firm also raised its dividend 3.1 percent.

     Bank of Montreal was little changed at C$82.16. Canada’s fourth-largest lender posted third-quarter profit that beat analysts’ estimates on gains in consumer lending and investment banking.

US

By Elena Popina

     Aug. 26 (Bloomberg) — U.S. stocks rose, sending the Standard & Poor’s 500 Index to close above 2,000 for the first time, as reports showed the biggest ever jump in durable-goods orders and an unexpected increase in consumer confidence.

     Amazon.com Inc. added 2.3 percent after the company said it’s buying video-game service Twitch Interactive Inc. in one of its biggest-ever acquisitions. Tim Hortons Inc. jumped 8.5 percent after Burger King Worldwide Inc. agreed to acquire the coffee-and-doughnuts chain in a $11.4 billion cash-and-share deal. Best Buy Co. dropped 6.9 percent after posting a same- store sales decline that was steeper than analysts had projected.

     The S&P 500 rose 0.1 percent to 2,000.02 at 4 p.m. in New York, after climbing as high as 2,005.04. The Dow Jones Industrial Average added 29.83 points, or 0.2 percent, to 17,106.70, also reaching an all-time high intraday. About 4.5 billion shares changed hands on U.S. exchanges today, 20 percent below the three-month average.

     “The 2,000 number got a lot of attention, but let’s get back to basics and see how the economy is doing,” Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview.

     Data today showed orders for U.S. durable goods jumped 23 percent in July as bookings surged for commercial aircraft. An air show in the U.K. helped drive a 318 percent jump in plane orders, the most since January 2011. A 0.5 percent drop in orders for non-military capital goods excluding aircraft last month followed a June increase of 5.4 percent.                   

     The Conference Board’s consumer confidence index rose to 92.4 in August, the highest since October 2007, from a revised 90.3 a month earlier, the private research group said.

     The S&P 500 has advanced for the past three weeks and more than $1 trillion has been added to the value of American equities since a two-month low on Aug. 7 amid speculation central banks will continue to keep interest rates near zero even as the economy strengthens.

     “I am still bullish on the U.S. market, but I do expect the S&P 500 to consolidate and slip back to 1,950-80 range as it’s due for a rest once it climbs to 2,000,” said Manish Singh, who helps manage $2 billion at Crossbreed Capital in London. “Any dip will be a shallow one. The central-bank and data narrative is still supportive of risk.”

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, slid 0.6 percent to 11.63. The gauge has lost 15 percent this year.

     Seven of the 10 main groups in the S&P 500 increased today. Energy shares led gains with a 0.5 percent rally as West Texas Intermediate oil rose from a seven-month low. Exxon Mobil Corp. added 0.9 percent to pace an advance in the Dow.

     The Nasdaq Biotechnology Index climbed 1.3 percent to the highest on record, completing a rebound from a 21-percent decline from February through April amid concern that earnings don’t justify their share prices.

     U.S. shares of Canada’s Tim Hortons added 8.5 percent to $81.05 after rallying 19 percent yesterday. Burger King slid 4.3 percent to $31, reversing an earlier 2.5 percent gain. The hamburger chain yesterday surged 20 percent yesterday after saying it is in talks with Tim Hortons. Burger King will move its headquarters to Canada, enabling the second-largest U.S. burger chain relocate to a lower-tax country.

     Premier Inc. rose 5.4 percent to $32 after forecasting full-year adjusted earnings of $1.39 to $1.44 a share, exceeding the average analyst estimate of $1.38. The purchasing network owned by health-care providers also agreed to buy software company Aperek Inc. for $48.5 million.

     Amazon.com added 2.3 percent to $341.83 after the company said said it’s paying $970 million in cash for Twitch, the online gathering place for gamers. The acquisition gives the Web retailer a forum of more than 55 million monthly active users, where people discuss games or watch others as they play.

     DSW Inc., a shoe retailer, jumped 9.2 percent to $30.99 after reporting higher-than-estimated profit.

     Best Buy lost 6.9 percent to $29.80 after the world’s largest electronics chain said second-quarter comparable sales fell 2.7 percent. That was steeper than the 2.2 percent drop forecast by analysts on average. Same-store sales will decline by a “low single digit” percentage rate in the third and fourth quarter, the company said.
 

Have a wonderful evening everyone.

 

Be magnificent!

Do you live and work in the world?

Always act according to the highest moral standards, both in private and in public.

Always be honest in word and deed, both in private and in public.

Master your emotions and control your senses, both in private and in public.

Be calm and patient, both in private and in public.

Take every opportunity to serve others, both in private and in public.

Be kind and gentle to your children, both in private and in public.

Taittirtya Upanishad

 

As ever,

 

Carolann

 

In the right light, at the right time, everything is extraordinary.

                                                        -Aaron Rose, 1969-

 

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:

I finished reading a wonderful book on the weekend entitled The Night Circus by Erin Morgenstern.  If you are looking for a good read, I highly recommend it.  From the Globe & Mail review of this book on the paperback edition:

A book that stops you in your tracks, a book [that]…tears you open and leaves you gasping….A book that makes the hair ojn your arms stand on end, and that has you picking up the phone or sending a text to tell everyone you know, “You have to read this”…One of those rare, wonderful, transcendent books that, upon finishing, you want to immediately start again….The Night Circus welcomes all visitors.

Our revels now are ended.  These our actors
As I foretold you, were all spirits, and
Are melted into air, into thin air:
And, like the baseless fabric of this vision,
The cloud-capp’d tow’rs, the gorgeous palaces,
The solemn temples, the great globe itself,
Yea, all which it inherit, shall dissolve,
And, like this insubstantial pageant faded,
Leave not a rack behind.  We are such stuff
As dreams are made on;  and our little life
Is rounded with a sleep.

                 -Prospero, The Tempest, Act IV, Scene I.

We saw Woody Allen’s latest, Magic in the Moonlight at the theatre  yesterday.  Colin Firth is a terrific actor; story a bit weak, but a cute movie….Allen keeps churning them out at quite a pace.

August 25^th, 2009:  Ted Kennedy dies, a  great loss to the world.

And on this date in 1975, Bruce Springsteen unveiled the album “Born to Run.”

Photos of the Day
Musicians perform as the sun sets at Arpoador Beach in Rio de Janeiro. Pilar Olivares/

Riders pass the Príncipe de Asturias aircraft carrier, the only one in the Spanish navy’s possession, at the start of the third stage of the Vuelta, tour of Spain cycle race, in Cadiz, Spain. Miguel Angel Morenatti/AP

Owen Wright of Australia competes in the Billabong Pro surfing competition in Tahiti. Will Hayden-Smith/ASP/AP

Market Closes for August 25^th, 2014    

Market Index	Close	Change
Dow Jones	17076.87	+75.65
		+0.44%
S&P 500	1997.92	+9.52   +0.48%
NASDAQ	4557.348	+18.797   +0.41%
TSX	15598.74	+63.19
		+0.41%

International Markets

Market Index	Close	Change
NIKKEI	15613.25	+74.06
		+0.48%
HANG SENG	25166.91	+54.68
		+0.22%
SENSEX	26437.02	+17.47
		+0.07%
FTSE 100	6775.25	-2.41
		-0.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.042	2.073
CND. 30 Year Bond	2.598	2.629
U.S.    10 Year Bond	2.3820	2.4015
U.S. 30 Year Bond	3.1314	3.1574

Currencies

BOC Close	Today	Previous
Canadian $	0.91044	0.91381
US $	1.09837	1.09432
Euro Rate 1 Euro=		Inverse
Canadian $	1.44908	0.69010
US $	1.31930	0.75798

Commodities

Gold	Close	Previous
London Gold Fix	1276.69	1280.40
Oil	Close	Previous
WTI Crude Future	95.10	96.05

Market Commentary:

Canada

By Callie Bost

     Aug. 25 (Bloomberg) — Canadian stocks rose to a record amid optimism that central banks worldwide will keep interest rates low. Tim Hortons Inc. surged on merger talks.

     Consumer-discretionary stocks rallied the most in the benchmark index as Tim Hortons soared 19 percent on discussions of a merger with Burger King Worldwide Inc. First Quantum Minerals Ltd. climbed 2.2 percent as copper rallied to a two- week high. Semafo Inc. and B2Gold Corp. dropped more than 3.7 percent as gold futures declined.

     The S&P/TSX advanced 63.19 points, or 0.4 percent, to a record 15,598.74 at 4 p.m. in Toronto. The benchmark equity gauge climbed 1.5 percent last week for the best gain since June.

     Trading in S&P/TSX stocks was 29 percent below the 30-day average. Canadian stocks have surged 15 percent this year, making the S&P/TSX the second-best performer among developed equity markets behind Denmark.

     Global central bankers last week led by Federal Reserve Chair Janet Yellen said labor markets still have further to heal before their economies can weather higher interest rates. Comments by Mario Draghi fanned speculation the European Central Bank is closer to quantitative easing.                         

     Bank of Canada Governor Stephen Poloz said in an interview Aug. 22 that persistent slack in the country’s labor market and a tendency toward part-time job creation has restrained income growth in the world’s 11th-largest economy. Economists surveyed by Bloomberg forecast policy makers to keep the benchmark rate at 1 percent, where it’s been for almost four years, until the third quarter of next year.

     Seven of 10 industries in the S&P/TSX advanced. Consumer- discretionary shares rallied 2 percent, while industrials gained 0.6 percent.

     Tim Hortons soared 19 percent to C$82.03. Burger King would create the world’s third-largest fast-food chain by merging with Canada’s bigger seller of coffee and doughnuts, the companies said in a statement.

     The combined business would have about $22 billion in sales and more than 18,000 restaurants in 100 countries, according to the statement. The deal is subject to negotiation, and Burger King and Tim Hortons don’t plan to comment further until an agreement is reached or discussions are discontinued.

     First Quantum Minerals advanced 2.2 percent to C$25.05 to a three-week high as copper futures rose 0.4 percent to settle at $3.237 a pound in New York.

     The S&P/TSX Gold Index fell 1.5 percent to a one-month low as gold futures slipped 0.1 percent. Semafo slumped 4.1 percent to C$4.87, while B2Gold dropped 3.7 percent to C$2.63. Alamos Gold Inc. fell 2.2 percent to C$9.71.

US

By Elena Popina

     Aug. 25 (Bloomberg) — U.S. stocks rose, briefly sending the Standard & Poor’s 500 Index above 2,000 for the first time ever, as corporate dealmaking and prospects for economic stimulus in Europe bolstered confidence in the bull market.

     The S&P 500 rallied 0.5 percent to 1,997.92 at 4 p.m. in New York, paring gains in the afternoon after holding above 2,000 for less than two hours and reaching a record 2,001.95. The Dow Jones Industrial Average increased 75.65 points, or 0.4 percent, to 17,076.87. About 4.3 billion shares changed hands in the U.S. today, 23 percent below the three-month average.

     “This number, 2,000, is a pretty significant number from psychological and financial points,” Joe Bell, senior equity analyst at Cincinnati-based Schaeffer’s Investment Research Inc., said in a phone interview. “Perhaps we might reach a little bit overbought status, and it looks like the index is going to take a breather there.”

     Merger and acquisition activity led to some of the biggest moves in the market today. Burger King Worldwide Inc. added 20 percent after saying it’s in talks to buy Tim Hortons Inc. and move its headquarters to Canada. InterMune Inc. surged 35 percent after Roche Holding AG purchased the biotechnology company for $8.3 billion.  Morgan Stanley climbed to the highest since 2009 and JPMorgan Chase & Co. and Goldman Sachs Group Inc. climbed more than 1.3 percent.

     The S&P 500 has recovered almost 100 points since its low during trading on Aug. 7, climbing on nine of 12 days to erase the 3.9 percent drop that began on July 24. The U.S. equity benchmark has advanced for the past three weeks and more than $900 billion has been added to the value of American equities.

     The Stoxx Europe 600 Index jumped 1.1 percent today as comments by Mario Draghi fanned speculation the European Central Bank is closer to quantitative easing. ECB policy makers “stand ready to adjust our policy stance further” and will use all available instruments to “ensure price stability over the medium term,” Draghi said on Aug. 22.

     Futures trading on the Chicago Mercantile Exchange halted for as long as four hours yesterday because of a technical problem, affecting contracts from U.S. stock indexes to Treasuries, oil and gold. CME Group Inc. suspended all of its Globex electronic-trading markets except for Malaysian equity- index derivatives, according to its website. Trading, which was scheduled to start at 5 p.m. Chicago time for some products, began at 9 p.m.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, added 2 percent to 11.70, the most in 10 days. The gauge has lost 15 percent this year.                       

     All 10 main S&P 500 groups advanced today, with financial, energy and healthcare stocks rising at least 0.7 percent for the best performances. Morgan Stanley added 2.2 percent to $34.20. Goldman Sachs increased 1.4 percent to $177.87 and JPMorgan Chase advanced 1.5 percent to $59.34 for the biggest gains in the Dow.

     Burger King, the burger chain that is majority-owned by 3G Capital, added 20 percent to a record $32.40. U.S. shares of Canada’s Tim Hortons jumped 19 percent to $82.03.

     Burger King would create the world’s third-largest fast- food chain by merging with Canada’s bigger seller of coffee and doughnuts, the companies said in a statement. Canada’s corporate tax rate is 26.5 percent, compared with 40 percent in the U.S., according to audit, tax and advisory firm KPMG.

     InterMune surged 35 percent to $72.85. Roche will buy the unprofitable company that’s awaiting U.S. approval of its biggest drug, for $74 a share, the Basel, Switzerland-based company said yesterday in a statement.

     Ann Inc., the owner of the Ann Taylor chain, rose 6.5 percent to $39.94, the highest in six weeks. The company could be valued at $50 to $55 a share to a potential acquirer, such as a private-equity buyer, according to a letter today from investment firms Engine Capital LP and Red Alder LLC.

 

Have a wonderful evening everyone.

 

Be magnificent!

When restraint and courtesy are added to strength, the latter becomes irresistible.

 

Mahatma Gandhi

 

As ever,

 

Carolann

 

I not only use all the brains that I have, but all that I can borrow.

                                               -Woodrow Wilson, 1856-1924

 

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 1902, Teddy Roosevelt became the first U.S. president to ride in a car. He traveled through Connecticut, spoke in New Haven and drove on packed streets of eager onlookers hoping to catch a glimpse of the president.-Steven Russolillo, WSJ.

From Maclean’s magazine:

Walking does a body good:  British researchers have found that walking just 20 minutes a day can reduce the risk of heart disease, cancer, depression and diabetes – and could save 37,000 lives in the U.K. annually.  This news comes on the heels of an American Cancer Society study showing that women who walked seven hours a week had a 14 per cent lower risk of breast cancer than those who walked three or fewer hours.

Photos of the Day
Clouds engulf the Teton mountain range near the Jackson Lake Lodge near Jackson, Wyo. The Federal Reserve Bank of Kansas City is holding the Jackson Hole Economic Policy Symposium at the lodge. John Locher/AP

A woman in a wedding gown and a tourist pose for photos with the skyline of the financial district of Singapore at Marina Bay. Edgar Su/Reuters

Market Closes for August 22^nd, 2014    

Market Index	Close	Change
Dow Jones	17001.22	-38.27
		-0.22%
S&P 500	1998.55	-3.82   -0.19%
NASDAQ	4538.551	+6.446   +0.14%
TSX	15530.07	-26.02
		-0.17%

International Markets

Market Index	Close	Change
NIKKEI	15539.19	-47.01
		-0.30%
HANG SENG	25112.23	+118.13
		+0.47%
SENSEX	26419.55	+59.44
		+0.23%
FTSE 100	6775.25	-2.41
		-0.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.073	2.082
CND. 30 Year Bond	2.629	2.639
U.S.    10 Year Bond	2.4015	2.4051
U.S. 30 Year Bond	3.1574	3.1892

Currencies

BOC Close	Today	Previous
Canadian $	0.91367	0.91381
US $	1.09448	1.09432
Euro Rate 1 Euro=		Inverse
Canadian $	1.44963	0.68983
US $	1.32449	0.75501

Commodities

Gold	Close	Previous
London Gold Fix	1280.40	1277.75
Oil	Close	Previous
WTI Crude Future	96.05	96.31

Market Commentary:

Canada

By Eric Lam

     Aug. 22 (Bloomberg) — Canadian stocks fell a second day, retreating from a record, as energy producers slumped with crude posting the longest losing streak in nine months and investors weighed earnings from Royal Bank of Canada.

     Royal Bank, the first Canadian lender to report third- quarter results, dropped 1.1 percent. Whitecap Resources Inc. and Legacy Oil & Gas Inc. retreated at least 1.4 percent as crude declined on concern refineries will reduce demand.

     The Standard & Poor’s/TSX Composite Index fell 20.54 points, or 0.1 percent, to 15,535.55 at 4 p.m. in Toronto. The benchmark equity gauge closed at a record 15,561.95 on Aug. 20.

     Whitecap Resources dropped 1.5 percent to C$18.28 and Legacy Oil & Gas retreated 1.4 percent to C$8.03 as energy producers fell 0.2 percent as a group. Three of 10 industries in the benchmark Canadian equity gauge retreated.

     Crude for October delivery slipped 0.3 percent to $93.65 a barrel in New York. The crude price has dropped 3.8 percent this week, for a fifth straight week of declines as the end of summer driving season approaches.

     U.S. Federal Reserve Chair Janet Yellen said slack remains in the U.S. labor market even after gains made during the past five years of economic recovery. Yellen spoke today in Jackson Hole, Wyoming, at a symposium also being attended by European Central Bank President Mario Draghi, who called on governments to do more to help the euro-area economy.

     Royal Bank, Canada’s second-largest lender by assets, lost 1.1 percent to C$80.80, the biggest decline in three weeks as profit growth in its domestic retail bank was the slowest in more than two years. The bank beat analysts’ estimates as investment-banking fees surged. Bank of Nova Scotia, National Bank of Canada and Bank of Montreal are scheduled to report earnings on Aug. 26.

US

By Elena Popina and Lu Wang

     Aug. 22 (Bloomberg) — The Standard & Poor’s 500 Index fell after reaching an all-time high as investors weighed comments from central bank leaders for clues to monetary policy amid rising geopolitical tension.

     The S&P 500 fell 0.2 percent to 1,988.40 at 4 p.m. in New York. The benchmark gauge ended the week with a 1.7 percent gain, its biggest advance since April. The Dow Jones Industrial Average lost 38.27 points, or 0.2 percent, to 17,001.22 today. The Nasdaq Composite Index added 0.1 percent to the highest since 2000. About 4.3 billion shares changed hands on U.S. exchanges today, the slowest full session this year. Volume has not topped 5 billion shares in each of the past four days.

     “Janet Yellen does not appear to have broken any new ground,” Jim McDonald, chief investment strategist at Chicago- based Northern Trust Corp., said by phone. His firm manages about $924 billion of assets. “The advance to the record has been supported by good U.S. economic data of late. The Fed is also doing a good job at preparing the market for the eventual increase in interest rates. As long as the economy continues to perform well, the market is in good shape.”

     Equities fluctuated after Federal Reserve Chair Yellen said in a speech at the Kansas City Federal Reserve’s annual economics conference in Jackson Hole, Wyoming, that slack remains in the labor market even after gains made during the five years of economic recovery. European Central Bank President Mario Draghi called for governments to do more to help the euro- area economy.                          

     The S&P 500 climbed to an all-time closing high of 1,992.37 yesterday as data from housing to manufacturing indicated that the world’s largest economy continues to strengthen. Minutes from the Fed’s July meeting released earlier this week reinforced the central bank’s commitment to supporting the recovery even as some policy makers indicated a willingness to raise rates sooner than anticipated.

     Fed Bank of St. Louis President James Bullard said in an interview the U.S. central bank may begin tightening monetary policy earlier than officials previously expected, while Atlanta Fed President Dennis Lockhart urged more patience.

     “The evidence is leading toward an earlier increase than would have been in the works earlier this year,” Bullard said on Bloomberg Radio in Jackson Hole. “Labor markets have improved quite a bit relative to what the committee was thinking.”

     Atlanta’s Lockhart, who spoke in a separate Bloomberg Radio interview yesterday, still warned of the risk of “moving prematurely and snuffing out some progress.”

     Draghi’s call for politicians to play their part in safeguarding the euro-area recovery comes as pressure mounts on the ECB for radical measures such as quantitative easing. One year after the end of the currency bloc’s longest-ever recession, the economy has stalled, unemployment remains near a record high and inflation is the weakest in almost five years.

     “Draghi has been very good at letting the market know that the ECB is ready to act, but the market will ultimately call his bluff if he doesn’t deliver,” Todd Lowenstein, who helps manage $16 billion at Highmark Capital Management in Los Angeles, said in a phone interview. “There’s a sense of impatience going on with the deterioration in the Eurozone, and there’s a growing desire to see an action plan.”

     In June, the ECB introduced targeted long-term refinancing operations to improve bank lending in the non-financial private sector.

     Three rounds of Fed stimulus and better-than-projected corporate earnings have helped the S&P 500 almost triple since its low in March 2009. The S&P 500 has not had a decline of 10 percent in almost three years. It trades at 17.8 times the reported earnings of its companies, near the highest level since 2010.

     The S&P 500 has rebounded 4.1 percent from a two-month low on Aug. 7, bolstered by easing tensions in Ukraine and speculation that central banks will keep interest rates low.

     Stocks dropped early in the day after NATO said it has seen large transfers of advanced weapons and sees an “alarming build-up” of Russian forces near Ukraine. Trucks carrying what Russia says is humanitarian aid crossed the border into Ukraine, whose government said the move amounted to an invasion because the convoy moved without its consent.

     Russia is invading under the cover of the aid trucks, Valentyn Nalyvaychenko, the head of Ukraine’s security council, said on TV5.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, slipped 2.5 percent to 11.47, the lowest level since July 16. The gauge has lost 16 percent this year.

     Seven of the 10 main S&P 500 groups declined today, with energy stocks falling 0.7 percent for the worst performance.

     Intuit Inc. fell 2.6 percent to $83.57 after the company forecast 2015 earnings and revenue that missed analysts’ estimates.

     Keurig Green Mountain Inc. surged 13 percent to $133.36, the highest on record, after announcing a deal to bring Kraft Foods Group Inc. coffee brands such as Maxwell House, Yuban and McCafe to its home brewing system.

     GameStop Corp. added 6 percent to $42.90 after the video- game chain reported profit that beat estimates as consumers bought new players and software.

     Ross Stores increased 7.4 percent, the most since January 2013, to $73.37. The operator of bargain-priced clothing and home-goods stores reported earnings of $1.14 per share in the second quarter, exceeding analysts’ projection for $1.08. Ross Stores raised its full-year earnings target.

     Gap Inc. gained 5.2 percent to $45.43. The largest U.S.apparel-focused retailer said profit excluding a gain from an asset sale was 70 cents a share in the second quarter. Net income rose 9.6 percent to $332 million, or 75 cents a share. That beat the average analyst projection of 69 cents.
 

Have a wonderful weekend everyone.

 

Be magnificent!

It is man’s social nature which distinguishes him from the brute creation.

If it is his privilege to be independent, it is equally his duty to be inter-dependent.

Only an arrogant man will claim to be independent of everybody else and be self-contained.

 

Mahatma Gandhi

As ever,

 

Carolann

 

Peace is when time doesn’t matter as it passes by.

                                   -Maria Schell, 1926-2005

 

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 1959, Hawaii became the 50th state in the U.S.

The Numbers today:

10,0000: Number of baby boomers who will turn age 65 every day between now and 2030. 

$896,000

The sum Berkshire Hathaway said it has agreed to pay to settle U.S. allegations that it violated antitrust laws by failing to report the acquisition of an equity stake in USG, a gypsum wallboard maker in Chicago.

Blanket

By Brian Johnstone

It flops down from the cupboard shelf by chance,
the grey  of something needing to be spread
again on earth, below taut canvas, half
remembered sky.  Still hinting at the smoke
of memories, it slumps like wood ash now
beneath my feet, green blanket-stitch the moss
on stones placed round a fire.
                              And glowing red?

A name tag tacking this to me, to years
in single figures, summer camps in fields
ploughed over when the tents were razed and gone;
the imprint of the past like patterns left
by grass stems in the flesh of knees,
                              that fade
as skin is stretched in standing, walking tall.

  -from Dry Stone Work, Arc Publications

Photos of the Day

People look at French artist Clement Briend’s photographic light installation ‘Divine Trees’, which features images of divine figures highly revered in Asian cultures projected on trees towering over bystanders, during a media preview of the Singapore Night Festival in Singapore. Edgar Su/Reuters

A home is alight from lanterns during the annual grand illumination night in Oak Bluffs on Martha’s Vineyard in Massachusetts. On this night, hundreds of lanterns hung on gingerbread cottage porches are lit. The tradition, dates from the turn of the 19th century. Kevin Lamarque/Reuters

Market Closes for August 21^st, 2014    

Market Index	Close	Change
Dow Jones	17039.56	+60.43
		+0.36%
S&P 500	1992.15	+5.64   +0.28%
NASDAQ	4532.105	+5.624   +0.12%
TSX	15556.80	-5.15
		-0.03%

International Markets

Market Index	Close	Change
NIKKEI	15586.20	+131.75
		+0.85%
HANG SENG	24994.10	-165.66
		-0.66%
SENSEX	26360.11	+45.82
		+0.17%
FTSE 100	6777.66	+22.18
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.082	2.100
CND. 30 Year Bond	2.639	2.652
U.S.    10 Year Bond	2.4051	2.4281
U.S. 30 Year Bond	3.1892	3.2180

Currencies

BOC Close	Today	Previous
Canadian $	0.91381	0.91172
US $	1.09432	1.09683
Euro Rate 1 Euro=		Inverse
Canadian $	1.45345	0.68802
US $	1.32819	0.75291

Commodities

Gold	Close	Previous
London Gold Fix	1277.75	1291.04
Oil	Close	Previous
WTI Crude Future	96.31	96.07

Market Commentary:

Canada

By Elena Popina

     Aug. 21 (Bloomberg) — Canadian stocks ended little changed, with the benchmark index near an all-time high, as declines in gold mining companies were offset by gains in financial shares.

     Alamos Gold Inc. and Goldcorp Inc. fell more than 3.5 percent as the metal fell to a two-month low on the outlook for higher U.S. interest rates. Whitecap Resources Inc. rose 7.8 percent after Canaccord Genuity said the company has the potential to increase its dividend by 10 to 15 percent in the next 12 months.

     The Standard & Poor’s/TSX Composite Index declined 6.69 points, or less than 0.1 percent, to 15,555.26 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 14 percent this year, the second-best performer among the world’s developed markets behind Denmark. It reached a record of 15,561.95 yesterday.

     Six of 10 industries in the S&P/TSX declined on trading volume 18 percent above the 30-day average. Raw-materials producers slid 1.9 percent for the biggest decline, as gold dropped 1.5 percent in New York. Oil dropped 0.5 percent.

     A Chinese Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics slid to 50.3 this month, missing the 51.5 projected in a Bloomberg survey. Euro-area manufacturing and services activity slowed in August, a preliminary report showed today.

     Financial stocks, which account for the biggest weighting in the broader index, added 0.5 percent. Royal Bank of Canada rose 0.1 percent to C$81.67. The lender is scheduled to report third-quarter earnings tomorrow.

     Cameco Corp. dropped 4.1 percent to C$21.62 after Cowen & Co. equity analyst Daniel Scott cut the stock to market perform, the equivalent of hold, from outperform.

USA

By Oliver Renick and Lu Wang

     Aug. 21 (Bloomberg) — Optimism that the Federal Reserve is committed to supporting a strengthening economy sent the Standard & Poor’s 500 Index to an all-time high and within eight points of the 2,000 milestone.

     The S&P 500 jumped 0.3 percent to a record 1,992.37 at 4 p.m. in New York, rising for a fourth day, the longest streak in two months. The Dow Jones Industrial Average gained 60.36 points, or 0.4 percent, to 17,039.49. The measure is 0.6 percent below its record after closing above 17,000 for the first time since July 24. Financial shares rallied as Bank of America Corp. added 4.1 percent. Hewlett-Packard Co. surged 5.4 percent to lead technology companies.

     “The market is really in a sweet spot for U.S. stocks, fundamentals continue to be very good,” Jeff Kravetz, the Phoenix-based regional investment director at US Bank’s Private Client Reserve, said via phone.

     The gains are coming after the S&P 500 started August with the worst weekly decline in more than two years. Almost $900 billion has been restored to American equity values since then, bolstered by easing tensions in Ukraine and speculation that central banks will keep interest rates low even as the economy shows signs of recovery. The S&P 500 has rebounded 4.3 percent from a two-month low on Aug. 7.

     About 4.8 billion shares changed hands on U.S. exchanges today, the second-slowest full session this year after May 23, the day before the Memorial Day holiday weekend. Volume has not topped 5 billion shares in each of the past three days.

     Minutes to the Fed’s July meeting released yesterday reinforced speculation that the central bank will remain supportive, even as some policy makers indicated a willingness to raise rates sooner than anticipated. While a report today showed fewer Americans than forecast applied for unemployment benefits last week, Fed Chair Janet Yellen has highlighted uneven progress in the labor market in making the case for further accommodation.                         

     Yellen will speak tomorrow at the Fed Bank of Kansas City’s economic symposium that starts today in Jackson Hole, Wyoming. European Central Bank President Mario Draghi will also speak.

     “The thesis for the second half is better growth,” Krishna Memani, the New York-based chief investment officer at OppenheimerFunds, said by phone. “The expectation for tomorrow is that Yellen is not going to say anything dramatic that’s going to be different from what she’s said before.”

     Among other data today, purchases of previously owned U.S. homes unexpectedly rose in July to a 10-month high as low borrowing costs and an increase in inventory drew buyers. The Conference Board’s index of U.S. leading indicators, a gauge of the outlook for the next three to six months, increased 0.9 percent in July, topping forecasts.

     The Markit Economics preliminary August index of U.S. manufacturing jumped to 58, the highest since April 2010, from 55.8 the month before as production, orders and employment picked up. Readings exceeding 50 in the purchasing managers’ gauge indicate expansion.

     “We’ve had a paradigm where good economic news is bad news, but it’s clear this week that good news is just good news,” Quincy Krosby, a market strategist at Newark, New Jersey-based Prudential Financial Inc., which manages more than $1 trillion, said via phone. “The package of data today was strong and the market is responding accordingly.”

     The S&P 500 has almost tripled since its March 2009 low, helped by three rounds of Fed stimulus, coupled with better- than-projected corporate earnings. The S&P 500 has not had a decline of 10 percent in almost three years. It trades at 17.8 times the reported earnings of its companies, near the highest level since 2010.

     The market’s latest rebound was the sixth in two years where equities needed less than two weeks to recover after a drop of 2 percent or more, according to data compiled by Sundial Capital Research Inc. The V-shaped pattern of losses followed by gains is recurring more often than any time in almost eight decades, Sundial data show.

     “It’s like trying to push a beach ball underwater and having it pop right back up,” 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. “That’s what’s been happening to equity markets as the Federal Reserve has been accommodative.”

     Investors are betting that a soft touch on monetary policy will continue to suppress stock volatility, pouring a record stretch of cash into an exchange-traded note that rallies as calm returns to equities. The Chicago Board Options Exchange Volatility Index, the gauge known as the VIX, has lost 31 percent this month.

     Among 486 companies in the S&P that have reported second- quarter earnings, more than 75 percent beat analysts’ estimates. Gap Inc. and Salesforce.com Inc. are among eight S&P 500 companies reporting results today.                          

     Financial stocks advanced 1.1 percent, the most of 10 primary groups in the S&P 500. Bank of America gained 4.1 percent, its largest increase since May 2013, to $16.16. The company will pay $245 million to settle U.S. Securities and Exchange Commission allegations that it failed to disclose rising mortgage losses and the risks of bonds tied to home loans.

     EBay Inc. jumped 4.7 percent to $55.89, the most since January 2013, after The Information reported the company may spin off its PayPal payment unit as soon as next year.

     Hormel Foods Corp. gained 4.3 percent to a record $49.92 after reporting earnings and revenue that beat analysts’ estimates.

     Hewlett-Packard advanced the most in the S&P 500, rising 5.4 percent to $37, the highest since July 2011. The company posted its first sales growth in 12 quarters, fueled by improving personal-computer sales.                       

     Sears Holdings Corp., the retailer controlled by billionaire hedge-fund manager Edward Lampert, fell 7.2 percent to $33.38 after posting a wider second-quarter loss as sales decreased for the 30th straight quarter.

     Dollar Tree Inc. fell 1.3 percent to $54.28 as the discount chain cut the top end of its full-year earnings forecast amid costs related to its bid for Family Dollar Stores Inc. The deal came closer to fruition today after the takeover target rejected a $9 billion offer from Dollar General Corp., citing antitrust hurdles.

     Family Dollar lost 0.5 percent to $79.41 and Dollar General slipped 0.2 percent to $63.61.
 

Have a wonderful evening everyone.

 

Be magnificent!

Until a radical change takes place and we wipe out all nationalities,

all ideologies, all religious division, and establish a global relationship – psychologically and

inwardly first, then organized in the outside world – we shall go on with war.

Krishnamurti

As ever,

 

Carolann

 

The welfare of each is bound up in the welfare of all.

                                    -Helen Keller, 1880-1968

 

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:

Rankings of the best places in the world to live published today….Impressive that Vancouver made it to third place, behind only Melbourne and Vienna.   Two other Canadian cities made it on the list – Toronto and Calgary.

In three words I can sum up everything I’ve learned about life.  It Goes On.  –Robert Frost.

Circumstance

Two children in two neighbor villages
Playing mad pranks along the healthy leas;
Two strangers meeting at a festival;
Two lovers whispering by an orchard wall;
Two lives bound fast in one with golden ease;
Two graves grass-green beside a gray church-tower,
Washed with still rains and daisy blossomed;
Two children in one hamlet born and bred;
So runs the round of life from hour to hour.

                           –Alfred, Lord Tennyson

August 20^th 1940: Winston Churchill stood in Parliament and said of the RAF bombers and fighter pilots:  “Never in the field of human conflict has so much been owed by so many to so few.”  The speech, his third major address to Parliament in the Battle of Britain in the summer of 1940, may not have been his finest oratorical hour.…But the phrase “The Few” stuck, and gave the British a rallying cry that lasted through the war and beyond. –Simon Houpt, G & M, 8/20/2014.

Photos of the Day
 A horse grazes on a pasture near Sehnde, northern Germany. Julian Stratenschulte/AP

A giant inflatable rubber duck floats past the USS Iowa battleship at the Port of Los Angeles. The world-famous sculpture sailed into the port for the first time to kick off the Tall Ships Festival LA and will remain in the harbor. The duck was designed by Dutch artist Florentijn Hofman and at 61 feet high, 110 feet long 85 feet wide is the largest rubber duck in the world. Hofman debuted the sculpture in 2007 and has since created several of them to sail around the world to places including China, Hong Kong and New Zealand. Nick Ut/AP

Market Closes for August 20^th, 2014    

Market Index	Close	Change
Dow Jones	16979.13	+59.54
		+0.35%
S&P 500	1986.51	+4.91   +0.25%
NASDAQ	4526.480	-1.034   -0.02%
TSX	15561.95	+84.78
		+0.55%

International Markets

Market Index	Close	Change
NIKKEI	15454.45	+4.66
		+0.03%
HANG SENG	25159.76	+36.81
		+0.15%
SENSEX	26314.29	-106.38
		-0.40%
FTSE 100	6755.48	-23.83
		-0.35%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.100	2.074
CND. 30 Year Bond	2.652	2.627
U.S.    10 Year Bond	2.4281	2.4015
U.S. 30 Year Bond	3.2180	3.2155

Currencies

BOC Close	Today	Previous
Canadian $	0.91172	0.91400
US $	1.09683	1.09410
Euro Rate 1 Euro=		Inverse
Canadian $	1.45441	0.68756
US $	1.32601	0.75414

Commodities

Gold	Close	Previous
London Gold Fix	1291.04	1295.57
Oil	Close	Previous
WTI Crude Future	96.07	94.48

Market Commentary:

Canada

By Eric Lam

     Aug. 20 (Bloomberg) — Canadian stocks rose to a record as crude and base metals prices advanced and the minutes from the Federal Reserve’s latest meeting indicated stimulus will continue amid uneven labor gains.

     First Quantum Minerals Ltd. and Lundin Mining Corp. gained at least 1.5 percent as copper advanced. Athabasca Oil Corp. rose 4 percent to pace gains among energy producers. AltaGas Ltd. lost 1.7 percent after declaring a plan to sell shares to fund capital growth. Bellatrix Exploration Ltd. retreated 2.4 percent after its biggest gain in more than a year yesterday.

     The Standard & Poor’s/TSX Composite Index rose 84.78 points, or 0.6 percent, to a record 15,561.95 at 4 p.m. in Toronto.

     Athabasca rose 4 percent to C$7.21 and Crew Energy Inc. added 3.9 percent to C$10.33. Nine of 10 industries in the benchmark Canadian equity gauge advanced.

     West Texas Intermediate crude rose for the first time in three days after U.S. stockpiles decreased more than expected last week.

     First Quantum gained 3.2 percent to C$25.02 and Lundin Mining rose 1.5 percent to C$6.11 as copper futures climbed.

     Gold fell to a two-week low after the Fed minutes were released. In the minutes, Fed policy makers raised the possibility that an end to aggressive stimulus might occur sooner than anticipated while acknowledging continued slack in the labor market. Fed Chair Janet Yellen will speak on labor markets on Aug. 22 in Jackson Hole, Wyoming.

     AltaGas dropped 1.7 percent to C$52. The company plans to sell 7.85 million common shares at C$51 to raise about C$400 million, with the proceeds to be used for capital growth, lowering debt and general corporate purposes.       AltaGas also agreed yesterday to a 15-year alliance with Painted Pony Petroleum Ltd. for the development of processing infrastructure and marketing services for natural gas in British Columbia. Painted Pony climbed 6.9 percent to C$14.36 today.       Bellatrix lost 2.4 percent to C$8.52. The oil and gas explorer jumped yesterday after activist investor Orange Capital LLC acquired a 5.3 percent stake in Bellatrix with as it seeks board changes and a possible sale.

     Canadian wholesale sales climbed 0.6 percent to C$53 billion ($48.4 billion), Statistics Canada said in Ottawa, faster than all 11 responses in a Bloomberg survey. The data adds to reports suggesting the world’s 11th economy rebounded in the second quarter after a tough winter disrupted production.

US

By Oliver Renick

     Aug. 20 (Bloomberg) — U.S. stocks gained for a third day, sending the Standard & Poor’s 500 Index to within two points of a record, as minutes indicated the Federal Reserve will continue to support the economy amid uneven gains in the labor market.

     The S&P 500 added 0.3 percent to 1,986.51 at 4 p.m. in New York. The gauge touched 1,988.57, briefly surpassing a closing high of 1,987.98 reached July 24, before pulling back. The Dow Jones Industrial Average rose 59.54 points, or 0.4 percent, to 16,979.13. The Russell 2000 Index of smaller companies slipped 0.4 percent. About 4.9 billion shares changed hands on U.S. exchanges, 14 percent below the three-month average.

     “The Fed said if data points move toward their objectives faster than expected they’ll raise rates sooner than expected,”  Todd Salamone, senior vice president of research at Cincinnati- based Schaeffer’s Investment Research, said via phone. “That’s still a big ‘if.’”

     In minutes to the central banks’ July meeting, released today, Fed officials raised the possibility that an end to aggressive stimulus might occur sooner than anticipated while acknowledging continued slack in the labor market. The Fed is on pace to wind down its monthly bond purchases in October, and intends to keep the benchmark interest rate low for a “considerable time” after that.

     The Fed minutes said that “many participants” noted that if jobs data moved toward the committee’s objectives more quickly than expected, “it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated.”

     Chair Janet Yellen has committed monetary policy to stronger labor markets, which she measures with an array of indicators, so long as inflation remains in check. In their statement after the July 29-30 meeting, Fed officials downplayed recent declines in the unemployment rate, highlighting “significant underutilization of labor resources.”

     Low inflation has given the Fed room to hold rates near zero even as economic growth shows signs of accelerating. Data yesterday showed inflation remains below the Fed’s target, while a report on Aug. 1 indicated employers added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997.

     Yellen will speak on labor markets Aug. 22 at the annual Fed Bank of Kansas City’s economic symposium that begins tomorrow in Jackson Hole, Wyoming. Policy makers including European Central Bank President Mario Draghi will also speak.

     Three rounds of Fed stimulus and better-than-estimated corporate earnings have sent the S&P 500 higher by 194 percent from its bear-market low on March 2009.

     The index has rebounded 4 percent from a three-month low on Aug. 7 as investors speculated central banks won’t raise rates sooner than anticipated. The S&P 500 has not had a decline of 10 percent in almost three years. It trades at 17.8 times the reported earnings of its companies, near the highest level since 2010.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, declined 3.5 percent to 11.78, the lowest level since July 23. The gauge has lost 14 percent this year.

     Eight of 10 primary groups in the S&P advanced, with industrial stocks pacing gains with a 1 percent advance. Jacobs Engineering Group Inc. jumped 3.1 percent to $53.90. ADT Corp. increased 2.7 percent to $37.22 and Southwest Airlines Co.advanced 2.7 percent to $31.57.

     International Rectifier Corp. soared 47 percent to $39.10. Infineon Technologies AG, Germany’s largest chipmaker, agreed to buy the company for about $3 billion in cash, adding to its power-management technology business.

     Hewlett-Packard Co. and Target Corp. are among the six S&P 500 companies reporting earnings today. Stocks rallied yesterday as retailers including Home Depot Inc. and TJX Cos. led gains on better-than-projected results.

     Staples Inc. declined 2.6 percent to $11.32 for the biggest loss in the S&P 500. The world’s largest office-supply chain will shut about 140 locations this year, part of a store-closing plan announced earlier, as the retailer responds to online competition.

     J.M. Smucker Co. fell 1 percent to $102.42 after the maker of peanut butter and fruit spreads reported earnings that missed analysts’ estimates, citing slow sales of consumer foods and coffee.                          

   “With multiples getting pushed up to full value, the market is starting to demand earnings-driven returns and top- line growth and they’re going to be a little more critical of earnings as a result,” Leo Kelly, the Hunt Valley, Maryland- based partner and chief executive officer of HighTower’s Kelly Wealth Management, said in a phone interview.

     Hertz Global Holdings Inc. slumped 3.9 percent to $30.33 after saying its full-year results will miss the low end of its forecast. The company said its performance is being hurt by a record number of auto recalls, higher-than-expected operating expenses in the U.S. rental-car market and sluggish demand for its equipment business.

     Investor Fir Tree Partners, which holds more than 3 percent of the stock, is urging Hertz’s board to replace Chief Executive Officer Mark Frissora, while billionaire Carl Icahn disclosed a stake and said he may seek representation on the board.

     Software companies declined the most of 24 groups in the S&P. Adobe Systems Inc. lost 1.4 percent to $71.02 and Yahoo! Inc. slid 0.9 percent to $37.50.

 

Have a wonderful evening everyone.

 

Be magnificent!

Better never love,

if that makes us hate others.

 

Swami Vivekananda

As ever,

 

Carolann

 

It takes a genius to whine appealingly.

         -F. Scott Fitzgerald, 1896-1940

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:

Today is Google’s 10^th birthday since the IPO.  It’s been a great investment.  Apple has rewarded its loyal investors this year with excellent returns as well.

On apples:

Besides keeping the doctor away, an apple a day could be your best protecting against heart attack.  Some time ago The Vancouver Sun reported on what was then new research indication that apples could be just as effective as statins when it comes to preventing strokes and heart attacks.  University of Oxford researchers recently concluded that roughly 8,500 deaths could be prevented each year if people in their 50s who weren’t on statins simply ate an apple each day.  It turns out that apples are high in soluble fibre, which slows the buildup of cholesterol-laden plaque in the heart’s arteries.  “While no one currently prescribed medicine should replace them for apples, we could all benefit from eating more fruit,” said Oxford researcher Adam Briggs.

Photos of the Day

Newborn giant panda triplets, which were born to giant panda Juxiao, are seen inside an incubator at the Chimelong Safari Park in Guangzhou, Guangdong province. According to local media, this is the fourth set of giant panda triplets born with the help of artificial insemination procedures in China, and the birth is seen as a miracle due to the low reproduction rate of giant pandas. Reuters

Devotees try to form a human pyramid to break a clay pot containing curd during the celebrations to mark the Hindu festival of Janmashtami in Mumbai. Janmashtami, which marks the birthday of Hindu god Krishna, is being celebrated across the country today. Shailesh Andrade/Reuters

Market Closes for August 19^th, 2014    

Market Index	Close	Change
Dow Jones	16919.59	+80.85
		+0.48%
S&P 500	1981.60	+9.86   +0.50%
NASDAQ	4527.516	+19.203   +0.43%
TSX	15477.17	+138.70
		+0.90%

International Markets

Market Index	Close	Change
NIKKEI	15449.79	+127.19
		+0.83%
HANG SENG	25122.95	+167.49
		+0.67
SENSEX	26420.67	+29.71
		+0.11%
FTSE 100	6779.31	+38.06
		+0.56%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.074	2.065
CND. 30 Year Bond	2.627	2.621
U.S.    10 Year Bond	2.4015	2.3927
U.S. 30 Year Bond	3.2155	3.1983

Currencies

BOC Close	Today	Previous
Canadian $	0.91400	0.91846
US $	1.09410	1.08878
Euro Rate 1 Euro=		Inverse
Canadian $	1.45751	0.68610
US $	1.33216	0.75066

Commodities

Gold	Close	Previous
London Gold Fix	1295.57	1297.47
Oil	Close	Previous
WTI Crude Future	94.48	96.41

Market Commentary:

Canada

By Eric Lam

     Aug. 19 (Bloomberg) — Canadian stocks rose the most in a month, as banks and energy producers rallied amid data showing growth in the U.S. housing sector and as tensions in Ukraine and Iraq eased.

     Bellatrix Exploration Ltd. surged 10 percent after activist investor Orange Capital LLC bought a stake in the oil and gas explorer to seek board changes. Alimentation Couche-Tard Inc. rose 1.4 percent after a report the convenience store operator made the short list to buy a $16 billion stake in China’s Sinopec Sales.

     The Standard & Poor’s/TSX Composite Index rose 138.70 points, or 0.9 percent, to 15,477.17 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 14 percent this year, the second-best performer among the world’s developed markets behind Denmark.

     Bellatrix advanced 10 percent to C$8.73. Orange Capital has taken a 5.3 percent stake in the company seeking board changes with an eye to exploring strategic alternatives including a sale, according to regulatory filings.

     Orange has been building its position in Bellatrix since July 2 and is the company’s largest shareholder slightly ahead of Fiera Capital Corp., which holds 5.2 percent, according to data compiled by Bloomberg.

     Lumber producer West Fraser Timber Co. increased 6.5 percent to C$53.68 and wood panel maker Norbord Inc. added 6.3 percent to C$23.43 as lumber makers rallied on U.S. housing data.

     U.S. home starts surged in July to the highest level in eight months as optimism in the residential real-estate market gains some traction.

     Painted Pony Petroleum Ltd. jumped 7.5 percent and Crew Energy Inc. rose 5.2 percent to C$9.94 as energy stocks added 1.6 percent as a group. All 10 industries in the S&P/TSX advanced today.

     Valeant Pharmaceuticals International Inc. climbed 4.1 percent to C$124.51, the biggest gain since June 25. The company’s takeover target, Allergan Inc., approached Salix Pharmaceuticals Ltd. and at least one other company, according to the Wall Street Journal.

US

By Oliver Renick

     Aug. 19 (Bloomberg) — U.S. stocks are closing in on record highs, with the Standard & Poor’s 500 Index rebounding at the fastest pace since February, as concerns over global crises give way to optimism that central banks will continue to accommodate a recovering economy.

     More than $710 billion has been restored to American equities in the past month and the S&P 500 is within 0.3 percent of an all-time high amid bets that the Federal Reserve will leave interest rates near zero for longer even as economic growth shows signs of accelerating. The U.S. equity benchmark added 0.5 percent to 1,981.60 at 4 p.m. in New York today.

     Stocks rallied today as retailers led gains on better-than- projected earnings while data showed inflation pressures remain limited and housing starts jumped. The Nasdaq Composite added 0.4 percent, its fifth straight day of increases, to the highest level since 2000. The Dow Jones Industrial Average rose 80.85 points, or 0.5 percent, to 16,919.59, still 219 points from its record. Apple Inc. jumped 1.4 percent to close at an all-time high.

     “The market has come back strong this week in a repeat of what we’ve seen throughout the bull run, the ability to motor through geopolitical events,” Tim Rudderow, president and chief investment officer at Newtown, Pennsylvania-based Mount Lucas Management Corp., said via phone. He helps oversee $1.5 billion. “Today’s numbers were solid but not spectacular, and that’s perfect in an environment where really robust economic growth would not be positive.”

     The S&P 500 has rebounded 3.8 percent since a three-month low on Aug. 7, the best eight-day return since the period ended Feb. 18. The gauge tumbled as much as 3.9 percent from its all- time high on July 24 amid growing concern over global conflicts from Ukraine to Gaza and Iraq.                     

     The Nasdaq Composite advanced 0.4 percent today after rallying 1 percent to its highest level since March 2000 yesterday. The Dow Jones Internet Composite Index is at the highest since March after tumbling nearly 20 percent after investors sold off the best performers during the five-year bull market amid concern valuations had become too expensive.

     The Nasdaq is 13 percent above its February low. The last time the measure closed this high, on March 31, 2000, it went on to sink 46 percent through the end of that year as the dot-com bubble burst.

     The S&P 500 is trading at 17.8 times the reported earnings of its companies, near the highest level since 2010. The gauge is back above its average price for the past 50 days, after having plunged below it on July 31. The Dow closed today above its 50-day average for the first time this month.

     “Valuations are getting a little on the higher range compared on a short-term basis,” Diane Garnick, chief executive officer of New York-based Clear Alternatives LLC, said in a phone interview. “People tend to compare to only what they remember, so as a result, people are absolutely sensitive to higher valuations. If we had this level in 1998 nobody would notice.”

     Stifel Nicolaus & Co.’s Barry B. Bannister increased his year-end forecast for the S&P 500 to 2,300, giving him the highest projection among 19 strategists tracked by Bloomberg. Previously he was tied for the lowest at 1,850. Bannister’s new estimate implies a 16 percent rally by the end of December.

     Foreign investors may increase purchases of U.S. stocks because of doubts about their own economies and central-bank policies, according to the report from Stifel.

     Other strategists are predicting weaker returns. Jonathan Glionna of Barclays Plc said overseas markets are generating too little demand for the S&P 500 to end the year any higher than current levels. Gains approaching 25 percent annually will weaken to 3 percent over the next decade as profit expansion reverts to its historic rate since 1929, said Doug Ramsey, the chief investment officer at Leuthold Group Llc.

     Three rounds of Fed stimulus and better-than-estimated corporate earnings have sent the S&P 500 higher by as much as 194 percent from its bear-market low on March 2009. The gauge has not had a decline of 10 percent in almost three years.

     Stocks fell earlier this month after data showing strong economic growth and hiring stoked speculation the Fed may raise rates sooner than investors had been anticipating. The S&P 500 rallied 1.2 percent last week as data on retail sales and jobless claims showed an uneven economic recovery, fueling bets the central bank will leave rates near record lows for longer.

     The Fed will release the minutes of its last gathering tomorrow, before central bankers meet in Jackson Hole, Wyoming. Fed Chair Janet Yellen and European Central Bank President Mario Draghi will be among the speakers at the annual symposium on monetary policy.

     A report today showed the cost of living in the U.S. climbed in July at the slowest pace in five months, indicating price pressures remain limited even as the economy picks up.

     Inflation continues to run below the Fed’s target as sluggish global demand limits companies’ ability to charge customers more. Restrained increases give the central bank’s policy makers room to keep interest rates low well after the projected end of their bond-buying program in October.

     “We keep hearing about Federal Reserve liquidity and how it’s going to put inflation through the roof, but inflation has been right in line,” Matt Maley, the Newton, Massachusetts- based equity strategist at Miller Tabak & Co. LLC, said via phone.

     Housing starts surged in July to the highest level in eight months, underscoring the recent pickup in builder optimism as the U.S. residential real-estate market gains some traction.

     An S&P index of homebuilders gained 2.6 percent, giving it the biggest two-day rally since May after jumping 2.1 percent yesterday on a report showing industry confidence rose in August. D.R. Horton Inc. advanced 3.3 percent and KB Home increased 2.7 percent.

     “With tame inflation data and the housing market benefiting from the drop in mortgage rates, it’s painting a pretty sanguine picture,” Russ Koesterich, chief investment strategist at New York-based BlackRock Inc., said by phone. “Housing starts were encouraging, and the housing market is one area the Fed has been concerned about being somewhat fragile.”

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, declined 0.9 percent to 12.21. The gauge is down 11 percent for the year.

     Retailers had the biggest advance among 24 groups in the S&P 500, climbing 1.9 percent.

     Home Depot Inc. advanced 5.6 percent to a record $88.23 after earnings topped analysts’ estimates and the company raised its forecast. Chief Executive Officer Frank Blake has focused Home Depot on boosting sales from existing locations and investing in e-commerce, rather than opening new stores.

     TJX Cos. increased 8.7 percent to $58.56. The discount apparel company that owns T.J. Maxx and Marshalls raised its profit forecast after comparable-store sales grew faster than estimated. Dick’s Sporting Good Inc. added 1.6 percent to $44.21. The company beat second-quarter earnings projections, though it said promotions and advertising will weigh on profit the rest of the year.

     The results, together with the rosy outlook from Home Depot, fueled investor optimism after a series of disappointing retail earnings reports. Wal-Mart Stores Inc., the world’s largest retailer, posted stagnant U.S. same-store sales last week, marking the sixth straight period of no growth. That followed a report from the Commerce Department that retail sales were little changed in July, hampered by a lack of wage gains.

     Aeropostale Inc. rose 19 percent, the most since 2002, to $3.87 after the struggling kids and teen apparel chain said Julian Geiger has returned as chief executive officer.

     Apple rose 1.4 percent to $100.53. The stock capped a fifth day of gains as investors look ahead to new products such as bigger-screen iPhones and a wristwatch-like device that may jump-start revenue growth. Today’s close topped the split- adjusted record of $100.30 reached Sept. 19, 2012, just before the iPhone 5 went on sale.

     Elizabeth Arden Inc. plunged 23 percent to $15.05, the lowest level since 2010, after saying a decline in sales of celebrity fragrances was steeper than anticipated in the fourth quarter. Net sales dropped 28 percent from the prior year as Justin Bieber and Taylor Swift fragrances slumped.

 

Have a wonderful evening everyone.

 

Be magnificent!

Nonviolence is the greatest force at the disposal of mankind.

It is mightier than the mightiest weapon of destruction devised by the ingenuity of man.

 

Mahatma Gandhi

As ever,

 

Carolann

 

Men are equal; it is not birth but virtue that makes the difference.

                                                               -Voltaire, 1694-1778

 

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 1982, trading volume on the New York Stock Exchange topped 100 million shares in a single day for the first time ever.
The 19^th amendment was ratified on this day in 1920, giving women the right to vote in the USA.

We went to a charming movie last night, The Hundred-Foot Journey.  Helen Mirren’s acting is brilliant as it always it, but the Papa played by Indian actor Omi Puri was a pleasant surprise.  He is superb.  And you end leaving the cinema feeling good.  It’s playing everywhere right now.

Photos of the Day

Tuk the macaw sits on the shoulder of a guest in front of a 1956 Rolls-Royce Phantom IV H.J. Mulliner Saloon during the Concours d’Elegance at the Pebble Beach Golf Links in Pebble Beach, California. Michael Fiala/Reuters

Workers hang outside the clock face as they clean the face of the clocktower popularly known as Big Ben at the Houses of Parliament in London, as they undertake essential maintenance and cleaning of the four faces of the clock. Sang Tan/AP

Market Closes for August 18^th, 2014    

Market Index	Close	Change
Dow Jones	16838.74	+175.83
		+1.06%
S&P 500	1971.74	+16.68   +0.85%
NASDAQ	4508.313	+43.386   +0.97%
TSX	15338.47	+34.23
		+0.22%

International Markets

Market Index	Close	Change
NIKKEI	15322.60	+4.26
		+0.03%
HANG SENG	24955.46	+0.52
		—
SENSEX	26390.96	+287.73
		+1.10%
FTSE 100	6741.25	+52.17
		+0.78%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.065	2.018
CND. 30 Year Bond	2.621	2.584
U.S.    10 Year Bond	2.3927	2.3397
U.S. 30 Year Bond	3.1983	3.1323

Currencies

BOC Close	Today	Previous
Canadian $	0.91846	0.91780
US $	1.08878	1.08957
Euro Rate 1 Euro=		Inverse
Canadian $	1.45484	0.68736
US $	1.33620	0.74839

Commodities

Gold	Close	Previous
London Gold Fix	1297.47	1304.86
Oil	Close	Previous
WTI Crude Future	96.41	97.35

Market Commentary:

Canada

By Eric Lam

     Aug. 18 (Bloomberg) — Canadian stocks rose a third day, extending a two-week high, as global equities on signs that tension from Ukraine to Iraq had eased.

     Royal Bank of Canada rose 0.7 percent before the lender reports earnings later this week. Air Canada jumped 5.9 percent as crude oil fell. Valeant Pharmaceuticals International Inc. lost 2.2 percent after extending its hostile bid for Allergan Inc.

     The Standard & Poor’s/TSX Composite Index rose 34.23 points, or 0.2 percent, to 15,338.47 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 13 percent this year, the second-best performer among the world’s developed markets behind Denmark.

     The MSCI All-Country World Index added 0.7 percent for a two-week high. Ukraine and Russia made some progress in “difficult” talks in Berlin, according to German Foreign Minister Frank-Walter Steinmeier, while his Russian counterpart said the meeting is yet to produce a resolution. Kurdish forces retook control of Iraq’s largest dam, while Israel and Palestinian militants agreed to extend their truce, media on both sides of the conflict reported.

     Seven of 10 industries in the S&P/TSX advanced on trading volume 31 percent below the 30-day average. Materials producers gained 0.6 percent as silver and copper advanced.

     Royal Bank climbed 0.7 percent to C$80.41 and Canadian Imperial Bank of Commerce added 0.4 percent to C$101.76 as financial stocks increased 0.4 percent as a group. Royal Bank, the second-largest lender by assets in Canada, is scheduled to report third-quarter earnings Aug. 22.

     Air Canada jumped 5.9 percent to C$8.48, snapping a five- day losing streak. U.S. crude oil sank 1 percent to $96.41 a barrel as tension in Iraq eased, while Brent crude dropped to a 14-month low.

     Valeant Pharmaceuticals International dropped 2.2 percent to C$119.59 after extending its offer to purchase Allergan until the end of the year. The conditions of the offer remain unchanged.

USA

By Oliver Renick

     Aug. 18 (Bloomberg) — U.S. stocks rose, extending the biggest weekly gain since July for the Standard & Poor’s 500 Index, as tensions eased over global conflicts and Dollar General Corp. rallied on merger activity.

     Dollar General surged 12 percent after offering $9.7 billion for Family Dollar, which rallied 4.9 percent. Southwest Airlines Co. and Delta Air Lines Inc. led gains among industrial companies as oil prices fell. Homebuilders rose as confidence in the industry climbed to the highest level in seven months. Internet and biotechnology stocks rallied, continuing to pare losses from earlier this year.

     The S&P 500 increased 0.9 percent to 1,971.74 at 4 p.m. in New York, within 0.8 percent of an all-time high. The Dow Jones Industrial Average gained 175.83 points, or 1.1 percent, to 16,838.74. The Nasdaq Composite Index jumped 1 percent to the highest level since 2000. About 5.1 billion shares changed hands on U.S. exchanges today, 12 percent below the three-month average.

     “People that were concerned about the possibility of a serious deterioration of the Russia-Ukraine situation and had no idea what was going to happen over the weekend came in this morning with a different perspective,” Marshall Front, chief investment officer at Chicago-based Front Barnett Associates LLC, said via phone. His firm manages $800 million. “The market opened up higher and we’ve been creeping up since then with some positive housing sentiment figures.”

     Ukrainian Foreign Minister Pavlo Klimkin met his Russian counterpart Sergei Lavrov for more than five hours of talks in Berlin, as they sought to ease tension after officials in Kiev said troops had partially destroyed an armed convoy from Russia. Klimkin said the talks had brought “moderate progress,” though he called on Russia to follow words with actions.

     Iraqi and Kurdish forces retook control of the Mosul Dam, Iraqiya television reported, citing military spokesman Qassem Ata. The U.S. widened its airstrikes in Iraq at the weekend to help secure the dam near Mosul, Iraq’s largest northern city, after it was seized by Islamist militants. Iraq is OPEC’s second-biggest oil producer.

     Israel and Palestinian militants agreed to extend their truce, media on both sides of the conflict reported, providing more time for negotiations on a long-term accord to end violence that has devastated Gaza.

     “We’ve seen very good earnings, and geopolitical tensions are not as elevated at the moment,” Patrick Spencer, head of U.S. equity sales at Robert W. Baird & Co., said by phone. “There’s been a lot of talk about a correction for equities, but markets are already a couple of points off their highs.”

     The S&P 500 fell as much as 3.9 percent from a record reached on July 24 amid growing concern over global conflicts from Ukraine to Gaza and Iraq. The benchmark index gained 1.2 percent last week as signs of a slowing economy stoked bets central banks will leave interest rates near record lows for longer.

     Reports showed the euro area’s recovery stalled in the second quarter, spurring speculation the European Central Bank will boost stimulus measures. In the U.S., July retail sales registered the worst performance in six months, jobless claims rose more than forecast and consumer sentiment slipped.

     The Federal Reserve is watching economic data to help gauge adjustments to monetary stimulus. The central bank remains on pace to wind down its monthly bond purchases in October. Fed Chair Janet Yellen has said officials will keep its benchmark interest rate low for a “considerable time” after the bond buying ends. The central bank releases minutes from its July meeting on Aug. 20.                         

     The following day, the Fed Bank of Kansas City begins its annual symposium in Jackson Hole, Wyoming, where leading economists and central bankers will discuss the outlook for the economy and monetary policy. Yellen and ECB President Mario Draghi are among the speakers at the conference, this year titled “Re-Evaluating Labor Market Dynamics.”

     Previous conferences there have foreshadowed some of the Fed’s biggest policy shifts since the financial crisis. In 2010 and 2012, then-Chairman Ben S. Bernanke signaled new bond buying that has pumped up the Fed’s balance sheet to a record $4.43 trillion.

     “Ever since the Bernanke comments made a few years back that’s one of the things you have to keep an eye on,” Joe Saluzzi, co-head of equity trading at Chatham, New Jersey-based Themis Trading LLC, said via phone. “When the Fed gathers, you have to watch it. We all know what moves markets now, and it’s the Fed.”

     Clothing retailer Urban Outfitters Inc. reported earnings today that beat analysts’ estimates. Of the S&P 500 companies that have reported quarterly results this season, 76 percent have topped earnings estimates, while 65 percent exceeded sales projections, according to data compiled by Bloomberg.

     The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options prices known as the VIX, declined 6.3 percent to 12.32.

     Dollar General jumped 12 percent, the most in the S&P 500, to a record $64.14. The company proposed to pay $78.50 a share in cash for Family Dollar, challenging Dollar Tree Inc.’s takeover bid of $74.50 a share in cash and stock. Dollar General forecast synergies of as much as $600 million on an annual basis, three years after completion of the deal.

     Family Dollar shares added 4.9 percent to $79.81, while Dollar Tree fell 2.4 percent to $54.26.

     Eight of 10 main groups in the S&P 500 advanced. Industrial stocks had the largest increase, surging 1.5 percent as airline shares climbed amid falling oil prices.

     Delta Air gained 2.5 percent to $39.51, while Southwest Airlines added 3.6 percent to $30.82. Brent crude slid 1.8 percent to a 14-month low.

     An S&P index of homebuilders gained 2.1 percent to the highest in three weeks as a report showed confidence rose in August, indicating the industry is making more headway after weakness earlier this year. The National Association of Home Builders/Wells Fargo sentiment measure climbed to 55 from 53 in July, the highest level in seven months.

     Lennar Corp. increased 1.7 percent to $37.55 and D.R. Horton Inc. jumped 1.4 percent to $21.13.

     Yahoo! Inc. rallied 2.5 percent to $37.38, helping to send the Dow Jones Internet Composite Index to the highest since March. The Nasdaq Biotechnology Index jumped 1 percent to the highest closing level in five months. Both indexes have recovered most of their losses from March and April, when investors sold off the best performers during the five-year bull market amid concern valuations had become too expensive.

     Achillion Pharmaceuticals Inc. advanced 3.1 percent to $9.54, extending gains for a seventh straight session. The biopharmaceutical company was raised to “buy” from “hold” by Deutsche Bank analyst Alethia Young.

     Monster Beverage Corp. lost 5.4 percent, the most in the S&P 500, to $88.44 after Jefferies Group LLC downgraded the stock to hold from buy, saying it is fully valued. Monster Beverage surged 30 percent on Aug. 15 after Coca Cola Co. agreed to buy a stake, pushing its valuation to 36.1 times estimated earnings. That compares with a five-year average multiple of 24.7.

 

Have  a wonderful evening everyone.

 

Be magnificent!

However much I may sympathize with and admire worthy motives,

I am an uncompromising opponent of violent methods even to serve the noblest of causes.

Mahatma Gandhi, 1869-1948

As ever,

 

Carolann

 

Our attitude towards others determines their attitude towards us.

                                                 -Earl Nightingale, 1921-1989

 

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