Category: Newsletters

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Pilgrims pray at the Basilica of Our Lady of Aparecida, Brazil’s national saint, in the city of Aparecida, Sao Paulo state, Brazil, on Wednesday. Every year on this date, millions of Brazilian and foreign pilgrims visit the shrine and about 100,000 people usually attend services in Aparecida commemorating her. Roosevelt Cassio/Reuters

Queen Letizia of Spain looks through the window of a car after attending a military parade marking Spain’s National Day in Madrid on Wednesday. Juan Medina/Reuters
Market Closes for October 12^th, 2016

Market Index	Close	Change
Dow Jones	18144.20	+15.54   +0.09%
S&P 500	2139.18	+2.45   +0.11%
NASDAQ	5239.019	-7.769   -0.15%
TSX	14618.97	+69.37
		+0.48%

International Markets

Market Index	Close	Change
NIKKEI	16840.00	-184.76
		-1.09%
HANG SENG	23407.05	-142.47
		-0.60%
SENSEX	28082.34	+21.20
		+0.08%
FTSE 100	7024.01	-46.87
		-0.66%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.196	1.197
CND. 30 Year Bond	1.831	1.835
U.S.    10 Year Bond	1.7692	1.7638
U.S. 30 Year Bond	2.4991	2.5014

Currencies

BOC Close	Today	Previous
Canadian $	0.75350	0.75421
US $	1.32715	1.32589
Euro Rate 1 Euro=		Inverse
Canadian $	1.46149	0.68423
US $	1.10123	0.90808

Commodities

Gold	Close	Previous
London Gold Fix	1256.50	1253.45
Oil	Close	Previous
WTI Crude Future	50.18	50.79

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks halted three days of declines as miners rallied with groups that pay high dividends as the Federal Reserve’s latest meeting minutes showed officials continue to favor only gradual increases in U.S. interest rates.
     The S&P/TSX Composite Index rose 0.5 percent to 14,618.97 at 4 p.m. in Toronto. The gauge has retreated 0.7 percent so far in October after capping a third monthly gain. The index is up 12 percent this year, making it the third-best performing developed market equity index in the world just behind the U.K. and New Zealand.
     Nine of 11 industries in the benchmark for Canadian equity advanced Wednesday, led by a 1.9 percent climb among raw- materials producers. Real-estate, utilities and consumer-staples stocks rose at least 1 percent.
     Gold miners jumped as the price of the metal for immediate delivery added 0.2 percent in New York, holding near the lowest level in four months. Gold has fallen on speculation the Fed will raise rates this year. Officials at the September meeting said a “reasonable argument could be made either for an increase at this meeting or for waiting for some additional information on the labor market and inflation.”
     Traders have now priced in a 68 percent chance the Fed will increase interest rates in December, a modest increase from before the minutes were released, according to data compiled by Bloomberg. A gauge measuring the dollar against its major peers advanced a third day to trade at the highest in seven months. 
     Gold is less attractive in an environment of rising rates because it doesn’t pay a yield, while a firming greenback is generally negative for commodities priced in U.S. dollars.
     Oil and gas companies lost 0.1 percent, paring an earlier retreat, as crude fell 1.2 percent in New York, holding near $50 a barrel for a second day of losses. Crescent Point Energy Corp. and Husky Energy Inc. lost at least 2.6 percent.
     Enbridge Inc. added 1.1 percent, reversing an earlier decline. Protesters seeking to stop construction of an oil pipeline in North Dakota temporarily shut five pipelines. Protesters used bolt cutters to tamper with valves in an attempt to disrupt a pipeline in Minnesota, forcing Enbridge to shut two of its main lines as a precaution.
     Commodities producers remain the top-performing industries in Canada this year, fueling a rebound in the wider gauge after a weak 2015 when the benchmark equity gauge posted its worst loss since the 2008 financial crisis. The S&P/TSX Materials Index is up 38 percent and set to halt its longest yearly losing streak since 1988. Energy producers are second with a 25 percent gain.
     Canadian stock valuations remain 16 percent higher than their U.S. peers, with the S&P/TSX carrying a price-to-earnings ratio of 23.3 compared with 20.2 for the the S&P 500 Index, according to data compiled by Bloomberg.

US
By John Hyland and Anna-Louise Jackson
     (Bloomberg) — U.S. stocks extended gains after minutes from the Federal Reserve’s latest meeting showed officials were in no rush to raise interest rates as they wait for additional data on the strength of the labor market.
     The S&P 500 Index rose 0.3 percent to 2,143.69 at 2:22 p.m. in New York, near its average price during the past 100 days after the steepest selloff in four weeks took it below that closely watched level for the first time since June. The index extended gains following the Fed release as officials were seen debating the timing for higher rates amid data showing steady but slow improvement in the economy.
     “It was a little bit more balanced in the sense of more talking around the possibility of raising the rates,” said Melda Mergen, senior vice president and director of U.S. equities in Boston at Columbia Threadneedle Investments. “That being said, it’s pretty much offset with the factors like looking at the downside risk outside the U.S. and maybe the other things in the economy can give them a pause here.”
     Uncertainties over the economic outlook and the desire by the committee to assure that job growth remains strong are likely to delay another rate increase until December, federal funds futures traders are betting. Fed officials next meet Nov. 1-2, just before the U.S. election on Nov. 8.
At the September meeting, the Federal Open Market Committee left the benchmark lending rate unchanged, even as a majority of the 17 participants still forecast at least one hike this year. Officials debating the merits of raising interest rates last month described the decision as a close call, with several saying a rate hike was needed “relatively soon,” minutes of the September meeting showed.
     Equity investors are on edge after Alcoa Inc. yesterday dropped the most in seven years following results that missed analysts’ estimates. The release came as projections called for a sixth quarter of falling earnings for the S&P 500, while speculation intensified that the Fed will raise borrowing costs this year. The benchmark U.S. 10-year note yield rose to a four- month high Wednesday, while traders place the odds of a move in December at 67 percent, up from 50 percent two weeks ago.
     “The combination of bad out-the-gate earnings reports, rising sense of Fed raising rates, and bond yields going up is a tough combination for stocks,” said Jim Paulsen, chief investment strategist at Wells Capital Management, which manages about $350 billion. “The market is going to need a show of momentum economically and on earnings to handle higher yields.”
     Recent economic data beating forecasts and comments by Fed officials have fueled bets that the central bank is on a path to increase rates this year. Investors will watch reports on retail sales, consumer sentiment and producer prices due on Friday.
     “Some investors are a bit nervous,” said Benno Galliker, a trader at Luzerner Kantonalbank AG in Lucerne, Switzerland. “Hiking once is fine, but a series of increases could hurt the market. While good for banking, it means higher financing costs, which means lower profits for firms.”
     Railroad CSX Corp. will release earnings after Wednesday’s market close, while Delta Air Lines Inc., JPMorgan Chase & Co. and Citigroup Inc. are also among those scheduled to report this week. Analysts forecast a profit drop of 1.6 percent for S&P 500 companies in the third quarter.
     “The trend coming out of the industrials companies that reported is very weak, but we’re not seeing any indication that that’s bleeding outside of industrials,” said John Augustine, chief investment officer for Huntington Bank in Columbus, Ohio, which oversees more than $17 billion. “There’s still the potential for a 2 to 3 percent upside surprise overall to earnings estimates and that will end the profits recession.”
     After surging as much as 7.2 percent this year through a record in August, the S&P 500 has failed to push higher. On Tuesday, the gauge closed at an almost one-month low, while the CBOE Volatility Index surged 15 percent. The measure of expected stock-price swings added 3.3 percent on Wednesday.

 

Have a wonderful evening everyone.

 

Be magnificent!

“Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.” Francis of Assisi

 

As ever,
 

Karen

 

“Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.” Buddha

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Yesterday was Columbus Day in the US (only the bond markets were closed, stock markets were open).  Tomorrow marks the anniversary of Christopher Columbus landing in the Americas in 1492.
He wrote in his journal on October 12, 1492:
When we stepped ashore we saw fine green trees, streams everywhere and different kinds of fruit….Soon many of the islanders gathered round us.  I could see that they were people who would be more easily converted to our Holy Faith by love than by coercion, and wishing them to look on us with friendship I gave some of them red bonnets and glass beads which they hung round their necks, and many other things of small value, at which they were so delighted and so eager to please us that we could not believe it.  Later they swam out to the boats to bring us parrots and balls of cotton thread and darts, and many other things, exchanging them for such objects as glass beads and hawk bells.  They took anything, and gave willingly whatever they had.
   However, they appeared to me to be a very poor people in all respects.  They go about as naked as the day they were born, even the women, though I saw only one, who was quite young.  All the men I saw were quite young, none older than thirty, all well built, finely bodied and handsome in the face.  Their hair is coarse, almost like a horse’s tail, and short; they wear it short, cut over the brow, except a few strands of hair hanging down uncut at the back…
   They carry no weapons, and are ignorant of them; when I showed them some swords they took them by the blade and cut themselves.  They have no iron; their darts are just sticks without an iron head, though some of them have a fish tooth or something else at the tip.
PHOTOS OF THE DAY

Costumed characters pose for a group photograph as they parade through the Brand Licensing Europe 2016 exhibition at Olympia in London on Tuesday. The 3-day trade show brings together brand owners, retailers, licensees, and manufacturers for deal making, networking, and trend spotting.Matt Dunham/AP

Northern Ireland soccer fans celebrate prior to the kickoff of the World Cup Group C qualifying soccer match against Germany in Hannover, Germany, on Tuesday. Martin Meissner/AP
Market Closes for October 11^th, 2016

Market Index	Close	Change
Dow Jones	18128.66	-200.38   -1.09%
S&P 500	2136.73	-26.93   -1.24%
NASDAQ	5246.789	-81.885   -1.54%
TSX	14549.60	-16.66
		-0.11%

International Markets

Market Index	Close	Change
NIKKEI	17024.76	+164.67
		+0.98%
HANG SENG	23549.52	-302.30
		-1.27%
SENSEX	28082.34	+21.20
		+0.08%
FTSE 100	7070.88	-26.62
		-0.38%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.197	1.170
CND. 30 Year Bond	1.835	1.818
U.S.    10 Year Bond	1.7638	1.7216
U.S. 30 Year Bond	2.5014	2.4546

Currencies

BOC Close	Today	Previous
Canadian $	0.75421	0.75278
US $	1.32589	1.32841
Euro Rate 1 Euro=		Inverse
Canadian $	1.46559	0.68232
US $	1.10536	0.90469

Commodities

Gold	Close	Previous
London Gold Fix	1253.45	1258.75
Oil	Close	Previous
WTI Crude Future	50.79	49.81

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks ended the day lower, extending a three-day slide, as a rally in energy companies stoked by crude trading near a 15-month high was offset by declines among raw-materials producers amid slumping gold prices.
     The S&P/TSX Composite Index fell 0.1 percent to 14,549.60 at 4 p.m. in Toronto. Canadian markets were closed Monday for the Thanksgiving holiday. The index is up 12 percent this year, making it the third-best performing developed market equity index in the world behind the U.K. and New Zealand.
     Raw-materials producers fell 0.6 percent as gold traded near the lowest in four months. The precious metal fell for the seventh time in eight sessions and has tumbled 4.8 percent in October. Barrick Gold Corp. and Franco-Nevada Corp. lost more than 1.7 percent.
     Traders have now priced in a 67 percent chance the Federal Reserve will increase interest rates in December, according to data compiled by Bloomberg. Gold is less attractive in an environment of rising rates because it doesn’t pay a yield.
     Meanwhile oil and gas companies added 0.6 percent, one of only two industries among 11 to advance in the S&P/TSX. Crude traded just under $51 a barrel in New York, after climbing 3.1 percent Monday. Russia’s biggest producer, Rosneft PJSC, said it won’t reduce output, according to Reuters, increasing uncertainty over whether the country will join OPEC’s deal to curb supply and balance the market. Suncor Energy Inc. rose 7.3 percent and Cenovus Energy Inc. added 2.7 percent.
     Raw-materials and energy remain the top-performing industries in Canada this year, fueling a rebound in the wider gauge even as its first-half resurgence has sputtered somewhat in the second. The S&P/TSX Materials Index is up 35 percent and set to halt its longest yearly losing streak since 1988. Energy producers are second with a 26 percent gain.
     Canadian stock valuations remain 15 percent higher than their U.S. peers, with the S&P/TSX carrying a price-to-earnings ratio of 23.2 compared with 20.1 for the the S&P 500 Index, according to data compiled by Bloomberg.
     Teck Resources Ltd. jumped 4.4 percent, the most in two weeks, for a second day of gains. A potential benchmark settlement between Peabody Energy Corp. and Nippon Steel & Sumitomo Metal Corp. at $200 per metric ton may be a “meaningful positive” for metallurgical coal producers, according to FBR Capital Markets analyst Lucas Pipes.

US
By Dani Burger and John Hyland
     (Bloomberg) — The S&P 500 Index fell to an almost four- week low as an early batch of disappointing corporate results damped optimism over a rebound in earnings, while growing speculation that the Federal Reserve will raise interest rates this year undermined demand for riskier assets.
     Equities suffered the worst decline in a month, with Alcoa Inc. tumbling the most in seven years as its earnings missed estimates. Health-care shares were the biggest losers, weighed down by Illumina Inc.’s 25 percent plunge after it said sales were lower than anticipated. Commodity producers retreated as a gauge on the dollar reached a two-month high, and chipmakers saw their biggest drop in four weeks.
     The S&P 500 slid 1.2 percent to 2,136.73 at 4 p.m. in New York, with losses accelerating in afternoon trading as the gauge fell below its average price during the past 100 days. The Dow Jones Industrial Average lost 200.38 points, or 1.1 percent, to 18,128.66. The Nasdaq 100 Index declined 1.5 percent following a fresh record on Monday, and the CBOE Volatility Index jumped 15 percent to a three-week high. About 6.7 billion shares traded hands on U.S. exchanges, in line with the three-month average.
     “We’ve got several factors weighing on the market right now,” said Alan Gayle, a senior strategist at RidgeWorth Investments. “Earnings, politics, Fed and oil taking a breather after a strong run. Typically, companies step over earnings guidance and the early news is that may not be happening. Investors have gotten news from multiple sources that are making them increasingly nervous and the market’s selling off.”
     It’s not the beginning to the earnings season investors had hoped for, with S&P 500 companies forecast to post a sixth consecutive decline in profits and trading at more than 18 times estimated earnings, compared with a 15.6 average for the past five years. In addition to the selloffs in Alcoa and Illumina, Fastenal Co. fell the most in 20 months after the industrial supplier’s profit missed predictions, and Seagate Technology Plc lost 7.6 percent after forecasting higher expenses.
     “Alcoa is always the first off and seen as a bellwether for industrial demand,” Chris Gaffney, president of world markets at St. Louis-based EverBank, said by phone. “People need to see strong earnings, especially with the thought that rates will start moving higher. The environment for companies is going to get less accommodating. The drivers today and going forward are going to be earnings.”
     Meanwhile, traders boosted odds for a December rate hike to nearly 68 percent, from 64 percent on Friday and about 50 percent two weeks ago as encouraging data signaled the U.S. economy is strong enough to cope with higher borrowing costs. They are pricing in a 17 percent chance of a move next month. Chicago Fed President Charles Evans told reporters in Sydney that a December move “could be fine,” after arguing in a speech to keep rates low until core inflation moves higher.
     Investors will also look to data and minutes from the Fed’s September meeting, which will be released on Wednesday, for clues on the health of the world’s biggest economy and the likely trajectory of interest rates. Reports on retail sales, producer prices and consumer sentiment are due Friday.
     “I think the only rationale for having valuations where they are is in the context of low interest rates,” said Mark Heppenstall, the Horsham, Pennsylvania-based chief investment officer of Penn Mutual Asset Management, which oversees about $20 billion. “If the bond market begins to show signs of weakness, that could spill over into pressure on equity prices.”
     Treasuries fell Tuesday amid bets that inflation will pick up, with 30-year bond yields touching the highest since June.
All of the S&P 500’s 11 main industries retreated, with health- care companies dropping to a three-month low amid the biggest selloff since June, while raw-materials fell 1.3 percent. Phone, real estate and consumer-staples companies were the only ones to lose less than 1 percent.
     Illumina posted its steepest drop in five years after saying third-quarter sales were lower than it previously anticipated because of declining demand for its high-speed genetic sequencers. Health-care equipment stocks saw their biggest slump since June’s Brexit vote, with Abbott Laboratories falling 5.4 percent, the most since April.
     Alcoa’s slide dragged raw-materials to a three-month low, with the aluminum producer capping its worst day since March 2009. Freeport-McMoRan Inc. lost 3.1 percent and International Paper Co. declined 2.3 percent.
     Intel Corp. decreased 2 percent to pace a retreat among chip stocks, the worst performers today in the broader tech group. Micron Technology Inc. and Applied Materials Inc. sank at least 2.5 percent.
     Banks in the benchmark index slumped 0.9 percent, even as rising bond yields signaled the potential for better earnings prospects. Citigroup Inc. and Bank of America Corp. fell more than 1.1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

Beauty lies in the total abandonment of the observer and the observed,
and there can be self-abandonment only when there is total austerity.
There is no ladder to climb; there is only the first step
and the first step is the everlasting step.
Krishnamurti

As ever,
 

Carolann

 

 

The media.  It sounds like a convention of spiritualists.
                                   – Tom Stoppard, b. 1937

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

THANKSGIVING
ANYONE CAN DO IT
   -by Thich Nhat Hanh

Looking at Your Empty Plate:
My plate, empty now,
will soon be filled
with precious food.

Looking at Your Full Plate:
In this food,
I see clearly the presence
of the entire universe
supporting my existence.

Contemplating Your Food:
This plate of food,
so fragrant and appetizing,
also contains much suffering.

Beginning to Eat:
With the firs taste, I promise
to offer joy.
With the second, I promise to
help relieve
the suffering of others.
With the third, I promise to
see other’s joy
as my own.
With the fourth, I promise to
learn the way
of non-attachment and
equanimity.

Finishing Your Meal:
The plate is empty.
My hunger is satisfied.
I vow to live
for the benefit of all beings.

Washing the Dishes:
Washing the dishes
is like bathing a baby Buddha.
The profane is the sacred.
Everyday mind is Buddha’s
mind.

PHOTOS OF THE DAY

Trees sway in heavy rain and wind from hurricane Matthew in front of Exploration Tower early Friday in Cape Canaveral, Fla. Matthew weakened slightly to a Category 3 storm, with maximum sustained winds near 120 mph, but the US National Hurricane Center says it’s expected to remain a powerful hurricane as it moves closer to the coast. Craig Rubadoux/Florida Today/AP

A stunt driver shows his skills at the international motorcycle exhibition in Cologne, Germany, on Friday. The motorcycle and scooter industry will show the latest bikes, from classic scramblers to the fastest racing bikes, at INTERMOT 2016, which runs through Sunday. Martin Meissner/AP
Market Closes for October 7^th, 2016

Market Index	Close	Change
Dow Jones	18240.49	-28.01   -0.15%
S&P 500	2156.27	-4.50   -0.21%
NASDAQ	5292.406	-14.445   -0.27%
TSX	14562.95	-32.55
		-0.22%

International Markets

Market Index	Close	Change
NIKKEI	16860.09	-39.01
		-0.23%
HANG SENG	23851.82	-100.68
		-0.42%
SENSEX	28061.14	-45.07
		-0.16%
FTSE 100	7044.39	+44.43
		+0.63%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.170	1.150
CND. 30 Year Bond	1.818	1.801
U.S.    10 Year Bond	1.7216	1.7372
U.S. 30 Year Bond	2.4546	2.4576

Currencies

BOC Close	Today	Previous
Canadian $	0.75278	0.75662
US $	1.32841	1.32167
Euro Rate 1 Euro=		Inverse
Canadian $	1.48752	0.67226
US $	1.11978	0.89303

Commodities

Gold	Close	Previous
London Gold Fix	1258.75	1254.50
Oil	Close	Previous
WTI Crude Future	49.81	50.44

Market Commentary:
Canada
By John Hylan 
     (Bloomberg) — Canadian stocks declined for a second day as employment data from the U.S. signaled that interest rates may be rising soon. Gold had the biggest weekly loss in more than three years.
     The S&P/TSX Composite Index fell 0.2 percent to 14,566.26 at 4 p.m. in Toronto, capping a weekly drop of 1.1 percent. The index is up 12 percent this year, making it the third-best performing developed market equity index in the world just behind New Zealand and the U.K.
     Gold capped its biggest weekly loss since 2013 as investors judged that a weaker-than-expected U.S. payrolls report won’t be enough to sidetrack the Federal Reserve from raising interest rates this year. Higher rates hurt the precious metal’s appeal since it doesn’t pay interest. Traders have now priced in a 64 percent chance that rates will rise in December, according to data compiled by Bloomberg.
     Canadian stocks remain expensive compared to their U.S. peers. The S&P/TSX is carrying a price-to-earnings ratio of 23.2 compared with 20.3 for the the S&P 500 Index, according to data compiled by Bloomberg.
     The decline in the S&P/TSX was broad-based, as nine of the 11 sectors declined. Raw-materials producers led gains, jumping 0.4 percent. Raw-materials and energy producers remain the top- performing industries in Canada this year. The S&P/TSX Materials Index is up 35 percent and set to halt its longest yearly losing streak since 1988. Energy producers are second with a 25 percent gain.
     Barrick Gold Corp. rose 1.6 percent erasing losses earlier this week. Goldcorp Inc. gained 0.4 percent and Franco-Nevada Corp. jumped 0.8 percent.
     Financial shares declined 0.2 percent. Royal Bank of Canada and Bank of Nova Scotia fell 0.3 percent. First National Financial Corp. tumbled 1.1 percent to its lowest level since April 2016. The company said Thursday that new housing rules will cut into its profit growth.
     Sunopta Inc. stock declined to the lowest level in seven months after announcing the conclusion of a strategic review. Oaktree Capital Management invested $85 million into the Canadian natural and organic food producer, and appointed new directors to the board.

US
By Dani Burger and Joseph Ciolli
     (Bloomberg) — U.S. stocks slipped Friday, adding to the first weekly decline in four, as jobs data showing steady growth in the labor market kept the Federal Reserve on track to carry out an interest rate increase this year.
     Materials producers led declines Friday, as gold and silver capped the worst week since at least November. Industrial shares tumbled after Honeywell International Inc. plunged the most since 2011 after profit missed targets. Tyson Foods Inc. retreated after an analyst downgraded the stock while citing a “powerfully convincing” class-action lawsuit.
     The S&P 500 Index slipped 0.3 percent to 2,153.73 at 4 p.m. in New York, pushing the decline this week to 0.7 percent. The Dow Jones Industrial Average lost 31.26 points, or 0.2 percent, to 18,239.74. It dropped 0.4 percent in the week. Equities pared losses in afternoon trading as investors speculate growth isn’t robust enough to warrant an increase in the pace of tightening.
     “There are still signs of overall health in a very tight labor market,” said Tony Bedikian, head of global markets for Citizens Bank in Boston. “This still leaves a likely December hike on the table here. I don’t think this report sways the Fed in terms of holding back from tightening.”
     Employers added 156,000 jobs in September, showing the labor market is settling into a pace that will support the economy as the Federal Reserve considers tightening monetary policy as soon as next month. The median forecast in a Bloomberg survey of economists called for a 172,000 advance. The jobless rate rose to 5 percent as the labor participation rate ticked up.
     The odds for a Fed rate hike in December have increased to 64 percent from 53 percent last week, while traders are pricing in a 17 percent chance of an increase as early as November. Officials have indicated a desire to tighten policy to a more normal level, while signaling that the pace of rate increases would be gradual so as not to knock economic growth off kilter.
     The S&P 500 trades at 16.8 times its members’ earnings, compared with global stocks’ valuation of 15.5 times and 14.8 for the Stoxx Europe 600 Index.
     The upcoming earnings season, which Alcoa Inc. unofficially kicks off on Oct. 11, will be closely watched for further indications of the health of corporate America. Analysts forecast a 1.5 percent contraction in three-month profit for S&P 500 members, which would be a sixth straight quarterly drop.

 

Have a wonderful weekend everyone.

 

Be magnificent!

What does it matter if we do not understand the exact meaning of the grand harmony?
Is it not like the bow player who touches a string and at once releases every resonance?  This is the language
of beauty, this is the caress that comes from the heart of the world and goes straight to our hearts.
Rabindranath Tagore

As ever,

 

Carolann

 

Recollect that you must be a seaman to be an officer; and also, that you cannot
be a good officer without being a gentleman.
     -Horatio Nelson, Lord Nelson, 1758-1805
to his midshipmen, in Robert Southey, The Life of Nelson, 1860 ed.

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

Today is my wedding anniversary and Gary gave me a book of poetry this morning; it is entitled Robert Browning on Love, edited by Stephen Brenna.  This is from the poem Mesmerism:

Then, – if my heart’s strength serve,
And through all and each
Of the veils I reach
To her soul and never swerve,
Knitting an iron nerve –
Command her soul to advance
And inform the shape
Which has made escape
And before my countenance
Answers me glance for glance –
                        -Robert Browning

I love  David Tang’s column in the weekend edition  of the Financial Times (House & Home section).  Last weekend one of his readers wrote in and commented, “I felt certain that you were going to discover the old aphorism of American divorce lawyers: 50 per cent of marriages end in divorce; the other 50 per cent in death.”  To which David Tang replied, “Not exactly a happy proposition.  It reminds me of the story of the woman who consulted a gypsy clairvoyant.  Looking into her crystal ball, the gypsy looked alarmed and reluctantly warned the woman that her husband would soon die a violent death.  The woman then asked if the gypsy could gaze further into her crystal ball and tell her if she would be acquitted.

  Talking of death, a very old friend of mine aged 89 told me one day that he was marrying someone aged 25.  I was astonished by the age gap and asked how he had managed to persuade someone so much younger to marry him.  ‘I told her I was 98,’ he replied.”

PHOTOS OF THE DAY

Raindrops sit on leaves in a park in Wernigerode, central Germany, on Thursday. Matthias Schrader/AP

People stop to watch the sunset next to a public fountain at the Temple of Debod park in Madrid on Thursday. The park is popular with locals but also attracts tourists because of its view at sunset. Francisco Seco/AP
Market Closes for October 6^th, 2016

Market Index	Close	Change
Dow Jones	18269.67	-11.36   -0.06%
S&P 500	2160.99	+1.26   +0.06%
NASDAQ	5306.852	-9.168   -0.17%
TSX	14603.39	-7.18
		-0.05%

International Markets

Market Index	Close	Change
NIKKEI	16899.10	+79.86
		+0.47%
HANG SENG	23952.50	+164.19
		+0.69%
SENSEX	28106.21	-114.77
		-0.41%
FTSE 100	6999.96	-33.29
		-0.47%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.150	1.091
CND. 30 Year Bond	1.801	1.759
U.S.    10 Year Bond	1.7372	1.7021
U.S. 30 Year Bond	2.4576	2.4234

Currencies

BOC Close	Today	Previous
Canadian $	0.75662	0.75863
US $	1.32167	1.31817
Euro Rate 1 Euro=		Inverse
Canadian $	1.47401	0.67842
US $	1.11526	0.89665

Commodities

Gold	Close	Previous
London Gold Fix	1254.50	1269.40
Oil	Close	Previous
WTI Crude Future	50.44	49.83

Market Commentary:
On this day in 2008, the Dow Jones Industrial Average closes below 10000 for the first time since 2004.
Number of the Day
19
The “cyclically adjusted price-earnings” ratio calculated using Commerce Department corporate profit data as of the end of the second quarter, just above its 50-year average of around 17.
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks ended the day lower as a rout in gold miners worsened while financial shares advanced on speculation that interest rates are poised to rise.
     The S&P/TSX Composite Index fell 0.1 percent to 14,595.50 at 4 p.m. in Toronto, after recovering from a three-day slide Wednesday that had wiped out 1.6 percent of its value. The index is up 12 percent this year, making it the second-best performing developed market equity index in the world just behind New Zealand.
     Canadian stock valuations remain 15 percent higher than their U.S. peers, with the S&P/TSX carrying a price-to-earnings ratio of 23.3 compared with 20.4 for the the S&P 500 Index, according to data compiled by Bloomberg.
     Raw-materials producers tumbled the most in the index, with gold miners dropping 2.3 percent to the lowest since April. Gold fell for a fifth day in New York, to the lowest in almost four months, wiping out more than 5 percent of value during a five- day slide. 
     Raw-materials and energy producers remain the top- performing industries in Canada this year, fueling a rebound in the wider gauge even as its first-half resurgence has sputtered somewhat in the second. The S&P/TSX Materials Index is up 35 percent and set to halt its longest yearly losing streak since 1988. Energy producers are second with a 25 percent gain.
     Traders have now priced in a 64 percent chance the Federal Reserve will raise interest rates in December, according to data compiled by Bloomberg. The U.S. is expected to report Friday that it added roughly 171,000 jobs in September, according to consensus estimates ahead of the latest jobs report. Gold is less attractive in an environment of higher rates as it doesn’t pay any yield.
     The prospect for higher rates lifted shares of some of Canada’s largest lenders, the largest component of the S&P/TSX.
     Canadian Western Bank jumped 2.6 percent, while Royal Bank of Canada added 0.6 percent. First National Financial Corp. fell 1.2 percent, erasing an earlier gain to extend losses for a fourth day. The alternative lender has now plunged 20 percent in four days, after Finance Minister Bill Morneau introduced measures this week to cool housing markets in Toronto and Vancouver and curb the rise in household debt.
     Imperial Oil Ltd. and Cenovus Energy Inc. rose more than 1.5 percent to lead gains among energy producers, as seven of 11 industries in the S&P/TSX advanced, offsetting some losses. Oil futures added 1.2 percent to settle at $50.44 in New York, extending gains after closing at the highest in more than three months Wednesday. The price of crude surged above $50 a barrel for the first time since June as U.S. stockpiles fell.
     Canopy Growth Corp. ended the day down 1.8 percent, after touching a record high. The marijuana producer’s Tweed brand is partnering with rapper Snoop Dogg to introduce a selection of varieties of cannabis under the “Leafs by Snoop” brand. Canopy is up 65 percent this year, after graduating to the Toronto Stock Exchange in July.

US
By Anna-Louise Jackson
     (Bloomberg) — U.S. stocks closed little changed, as rising technology shares helped offset declines among drugmakers, while investors awaited payrolls data for more evidence that the economy is strong enough to cope with higher borrowing costs.
     Apple Inc. rose for a third day to boost tech shares and Whole Foods Market Inc. rallied as much as 6.7 percent on takeover speculation, bolstering consumer staples. Mylan NV sank to a three-year low as drugmakers weighed on the health-care group, with lawmakers continuing to pressure the company over prices for its EpiPen allergy shot. Utilities extended their longest losing streak in 14 years.
     The S&P 500 Index added less than 0.1 percent to 2,160.77 at 4 p.m. in New York, erasing a 0.4 percent slide after a European Central Bank official affirmed that the ECB is still in an “accommodative mode.” The Dow Jones Industrial Average lost 12.53 points, or 0.1 percent, to 18,268.50, after reversing a 118-point drop. The Nasdaq Composite Index slipped 0.2 percent. About 6.3 billion shares traded hands on U.S. exchanges, 5 percent below the three-month average.
     “There is a lot of optimism priced into the market especially when it comes to the jobs,” said Kevin Kelly, chief investment officer at Recon Capital Partners LLC in Greenwich, Connecticut, which oversees $350 million. “The number this time better live up to expectations because every other indicator is showing that this economy is moving forward and it is doing well. The market is anticipating a rate hike in December, so should a really good jobs number come out, I don’t think it should spook it.”
     Stocks fell earlier Thursday as lackluster corporate results damped sentiment before the government’s jobs report Friday and the start of earnings season next week. The September employment release is in focus as recent data have exceeded forecasts, with a Bloomberg index tracking economic surprises turning positive yesterday for the first time since August. Odds of higher borrowing costs in December are almost 64 percent, while traders are pricing in a nearly 24 percent chance of a Fed hike in November, up from 17 percent last week.
     The labor market displayed further signs of strengthening as a report today showed filings for unemployment benefits fell last week almost to the lowest level since 1973. Continuing claims declined to the lowest since 2000. Economists surveyed by Bloomberg forecast data tomorrow will show the economy added 172,000 jobs in September, up from 151,000 a month earlier.
     “This is an economy that doesn’t need emergency rates any more,” said Ben Kumar, a London-based investment manager at Seven Investment Management LLP, which manages the equivalent of $13 billion. “Recent data and upbeat Fed comments on growth have allowed investors to get more comfortable with that idea, and it means they’re ready to tolerate a bit of higher market volatility.”
     Among shares moving today, Wal-Mart Stores Inc. dropped 3.2 percent and Yum! Brands Inc. fell 1.3 percent as their disappointing reports added to anxiety over corporate earnings on the cusp of the reporting period. Wal-Mart forecast profits for its next fiscal year that missed some estimates. American Express Co. lost 3.8 percent amid concerns its revenue will miss forecasts. Home Depot Inc. rallied 2.1 percent, the most in three months, as Florida braces for Hurricane Matthew.
     The upcoming earnings season will provide fresh indications on the health of corporate America. Analysts are still predicting a profit contraction for S&P 500 members in the third quarter, a sixth straight drop, before Alcoa Inc. unofficially kicks off the reporting period on Oct. 11.
     Stocks had a rocky start to the month, with the S&P 500 slipping 0.8 percent in the first two sessions before a bounce yesterday. While the gauge has historically been more volatile in October, it’s also a month that has typically yielded the best gains of the year, with an average advance of 1.9 percent over the past 25 such periods. The benchmark on Thursday closed 1.3 percent below the record it last reached in August.
     In today’s trading, the CBOE Volatility Index fell 1.2 percent to 12.84, wiping out an earlier 6.5 percent climb. The measure of market turbulence fell 1 percent in September after erasing a gain that reached 35 percent. Seven of the S&P 500’s 11 main industries advanced Thursday, with raw-materials producers leading with a 0.8 percent climb, while biotechnology shares dragged down the health-care group.
     Energy producers gained with crude oil futures above $50 a barrel today for the first time since June on optimism that the global glut will diminish. Schlumberger Ltd. and Occidental Petroleum Corp. increased more than 1.3 percent.
     Utilities fell for a 10th consecutive session, the longest since September 2002, with investors continuing to pivot away from shares that offer relatively high dividends as bond yields become more attractive. Amid increased wagers on higher rates, the yield on 10-year Treasuries rose to a three-month high. Phone companies retreated for the sixth time in seven days to hold at a four-month low.
     Health-care shares were the biggest drag today, with Endo International Plc down 3.7 percent, while Celgene Corp. and Gilead Sciences Inc. declined more than 1.2 percent. The Nasdaq Biotechnology Index dropped 2.2 percent to a three-week low.
      Alnylam Pharmaceuticals Inc. plunged 48 percent to a three- year low after ending development of its late-stage experimental drug for a rare disease because of safety concerns.

 

Have a wonderful evening everyone.

 

Be magnificent!

The divine music is incessantly going on within ourselves,
but the loud senses drown the delicate music,
which is unlike and infinitely superior to anything we can perceive with our senses.
Mahatma Gandhi

 

As ever,

 

Carolann

 

Can’t you read?  The score demands con amore, and what are you doing?
You are playing it like married men!
        -Arturo Toscanini, 1867-1957
Italian conductor, criticizing the playing of the
Austrian orchestra during rehearsal.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:
On this day in…
On October 5, 1947, in the first televised White House address, President Truman asked Americans to refrain from eating meat on Tuesdays and poultry on Thursdays to help stockpile grain for starving people in Europe.
On this day in 2011, Apple founder Steve Jobs dies at age 56.

And it is Bonnie’s 25^th wedding anniversary!
PHOTOS OF THE DAY

A girl rides a swing set up as part of festivities for Dashain as others await their turn in Kathmandu, Nepal, on Wednesday, Oct. 5, 2016. Dashain, the most important religious festival of Nepal’s Hindus, commemorates the victory of the gods over demons. Niranjan Shrestha/AP

People enjoy warm weather on the beach near a memorial for the victims of the July 14 attack on the Promenade des Anglais in Nice, France, on Wednesday. Eric Gaillard/Reuters

 

Stewards and stewardesses stand in line during the inauguration of the new train line linking Addis Ababa to the Red Sea state of Djibouti, in Addis Ababa, Ethiopia, on Wednesday. Tiksa Negeri/Reuters
Market Closes for October 5^th, 2016

Market Index	Close	Change
Dow Jones	18281.03	+112.58   +0.62%
S&P 500	2159.73	+9.24   +0.43%
NASDAQ	5316.020	+26.362   +0.50%
TSX	14610.58	+89.58
		+0.62%

International Markets

Market Index	Close	Change
NIKKEI	16819.24	+83.59
		+0.50%
HANG SENG	23788.31	+98.87
		+0.42%
SENSEX	28220.98	-113.57
		-0.40%
FTSE 100	7033.25	-41.09
		-0.58%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.091	1.064
CND. 30 Year Bond	1.759	1.731
U.S.    10 Year Bond	1.7021	1.6864
U.S. 30 Year Bond	2.4234	2.4121

Currencies

BOC Close	Today	Previous
Canadian $	0.75863	0.75818
US $	1.31817	1.31895
Euro Rate 1 Euro=		Inverse
Canadian $	1.47728	0.67692
US $	1.12070	0.89230

Commodities

Gold	Close	Previous
London Gold Fix	1269.40	1283.30
Oil	Close	Previous
WTI Crude Future	49.83	48.69

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rose for the first time in four days driven by miners and energy producers as crude advanced to near $50 a barrel and the recent plunge in gold prices leveled off.
     The S&P/TSX Composite Index rose 0.6 percent to 14,610.58 at 4 p.m. in Toronto, recovering from a three-day slide that wiped out 1.6 percent of its value. The index is up 12 percent this year, making it the third-best performing developed market equity index in the world just behind New Zealand and the U.K.
     Canadian exports rose 0.6 percent in August, their third straight monthly gain. And the nation posted a smaller-than- expected trade deficit.
     Gold was essentially flat at around $1,270 an ounce in New York, after falling more than 3 percent on Tuesday, as the Federal Reserve appears on track to raise interest rates in December. Oil rose 2.3 percent to settle at $49.73 a barrel in New York.
     Canadian stock valuations remain 15 percent higher than their U.S. peers, with the S&P/TSX carrying a price-to-earnings ratio of 23.3 compared with 20.3 for the the S&P 500 Index, according to data compiled by Bloomberg.
     Barrick Gold Corp., the world’s largest gold producer, added 3.4 percent after plunging the most in more than a year Tuesday. Raw-materials producers rose 0.8 percent following the worst one-day slide in three years. The gauge retreated 9.8 percent over the preceding four days.
     Energy producers jumped 1.4 percent, the biggest gain among seven of 11 industries in the S&P/TSX, led by Suncor Energy Inc. and Canadian Natural Resources Ltd.
     Raw-materials and energy producers remain the top- performing industries in Canada this year, fueling a rebound in the wider gauge even as a resurgent first half has sputtered somewhat in the second. The S&P/TSX Materials Index is up 37 percent and set to halt its longest yearly losing streak since 1988. Energy producers are second with a 25 percent gain.
     First National Financial Corp. slumped 9.9 percent for a third day of losses. The alternative lender has plunged 19 percent during its current slide, after Finance Minister Bill Morneau introduced measures this week to cool housing markets in Toronto and Vancouver and curb the rise in household debt. Mortgage insurer Genworth MI Canada Inc. lost 3.2 percent, falling to the lowest close since March.

US
By Anna-Louise Jackson
     (Bloomberg) — Once again, it’s all about the economy.
     That’s what investors in the U.S. stock market are thinking as the Federal Reserve moves closer to raising interest rates and new data show the world’s largest economy strengthening. The S&P 500 Index snapped a two-day drop after reports showing acceleration in the manufacturing and services sectors. While the gauges bolstered the case for higher rates, rallies in homebuilders, truckers and banks overshadowed the angst equity investors normally associate with a looming tightening of monetary policy.
     The readings follow recent assurances from Federal Reserve officials that the U.S. is on firmer footing, and a jobs report Friday could cement the central bank’s position that the economy is sound enough to withstand higher rates. Today’s reports provide relief to investors looking for signs that economic gains will help end five straight quarters of contraction in corporate earnings, said John Augustine, chief investment officer for Huntington Trust in Columbus, Ohio, which oversees more than $17 billion.
     “That could give the central bank some freedom to potentially remove some accommodation moving into next year,” he said. “Central banks are the source of volatility right now, and we suspect they’re going to continue to be the source of volatility in the fourth quarter.”
     The S&P 500 rose 0.4 percent to 2,159.73 at 4 p.m. in New York, rebounding from a drop Tuesday sparked by concerns tighter monetary policy from Europe to the U.S. could derail economic growth. Odds of the Fed raising rates by December climbed to 63 percent, boosting bank shares that benefit from a steeper yield curve. The Dow Jones Transportation Average of truckers and railroad operators posted its highest close this year. Energy producers jumped as crude approached $50 a barrel.
     Figures Wednesday showed factory and durable-goods orders accelerated modestly in August and followed a report on Monday that the Institute for Supply Management’s index — known as the PMI — advanced to 51.5 from August’s contraction-level 49.4 reading. The readings came after data showed car sales were stronger than analysts had estimated in September, suggesting there’s still some steam left in the U.S. auto industry’s six- year growth spurt.
     Nascent improvements in manufacturing help allay concerns about a broader slowdown that would stanch any hope that the recession in corporate earnings will end this year. Rising crude prices have also fed speculation that capital spending in the energy industry will accelerate, benefiting a swath of domestic industries.
     Today’s data are also a reminder what a difference a year can make. Last October, investors were fretting about a contraction in manufacturing that might spill over into a broader economic slowdown. Those fears were stoked in part by Daniel Florness, Fastenal Inc.’s now-chief executive officer, who said at the time that the industrial segment was in a recession. The concerns weren’t wholly unwarranted — the PMI measure of manufacturing activity slumped to 48 in the December reading, which was the lowest since the financial crisis.
     “We’re on firmer footing, but by no means are we seeing a meaningful or durable acceleration in manufacturing,” said Katie Nixon, chief investment officer of wealth management at Northern Trust Corp. “Thank heavens we got the PMI above 50, so we’re not contracting.”
     Crude rose Wednesday to the highest since June after government data showed U.S. stockpiles dropped last week, sending oil and gas companies to an almost four-week high. ConocoPhillips climbed 2.4 percent and Transocean Ltd. added 5.9 percent. Investors continued to unload defensive shares, with phone companies tumbling to the lowest since May, while utilities extended their losing streak to the longest in 14 years.
     U.S. shares overcame anxiety abroad as European stocks slid amid concern that the European Central Bank is moving toward a less accommodative stance. Fed policy makers continued to steer investor expectations toward a December rate increase, with a host of officials calling for tightening as the economy continues to improve. The Dow Jones Industrial Average gained 112.58 points, or 0.6 percent, to 18,281.03. About 7 billion shares traded hands on U.S. exchanges, 6 percent more than the three-month average.
     “The Fed has little excuse to not hike,” said Brian Jacobsen, chief portfolio strategist with Wells Fargo Funds Management LLC, which oversees $242 billion. “The big excuse is on the inflation front and even there, incremental progress is being made.”
     Stocks bounced from a rocky start to the month, as the S&P 500 slipped 0.8 percent over the first two sessions. While the gauge has historically been more volatile in October, it’s a month in which it posted larger gains in the last 25 years, with an average advance of 1.9 percent. The measure closed Wednesday 1.4 percent below the record it reached in August, bringing its annual gain to 5.7 percent.

 

Have a wonderful weekend everyone.

 

Be magnificent!

At our first meeting with beauty, we see it in its gaudy faded finery, jarring us with its garish tones,
its frills and flounces, even its deformed shapes.  But when we get to know it better,
the apparent discord reveals itself to us as rhythmic modulations.
At first, we isolate beauty from all that is around it; we detach it from the rest;
but in the end, we understand its harmony with the whole.
Rabindranath Tagore

As ever,

 

Carolann

 

The best thing about the future is that it comes one day at a time.
                                                -Abraham Lincoln, 1809-1865

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On Oct. 4, 1957, the Space Age began as the Soviet Union launched Sputnik, the first man-made satellite, into orbit.

Number of the Day
22%
The percentage below book value that Deutsche Bank’s shares traded last week, the lowest since Thomson Reuters Datastream calculations started in 1980.

OCTOBER
The western wind has blown but a few days
Yet the first leaf already flies from the bough.
On the drying paths I walk in my thin shoes;
In the first cold I have donned my quilted coat.

This is Arthur Waley’s translation of a Chinese poem.  The western wind has blown here for several days bringing the leaves tumbling, but it is the wind from the east and north that sends me indoors to don my quilted jacket.  The temperature is so changeable that one must be equipped for anything.  At one moment the day is thunderous;  a few moments later there is hardly a cloud to be seen, the sun is warm on my back and just as quickly my mood can change.  But as for thin shoes, wellingtons are surely more useful.  If I need to wear my quilted coat then it is time for some tender plants to be given a layer of bracken or an extra mulch, or to be taken indoors for the winter.  We know what time the sun will set and when the clocks are put back but what is always unknown is when the first frost will assail us.  We must be prepared. –Rosemary Varey, A Countrywoman’s Notes.

PHOTOS OF THE DAY

People walk through an installation by artist Zak Ove of a Nubian army of masked men in the courtyard of Somerset House in London on Tuesday. The unveiling of Ove’s resin and Jesmonite statues marks the launch of the 1:54 Art Fair. Kirsty Wigglesworth/AP

A stag stands in an inversion fog during rutting season, when they breed, in Richmond Park, southwest London, on Tuesday. Matt Dunham/AP

Actors dressed as ‘Yetis’ ride a tour bus during a promotional event for the Travel Channel’s ‘Expedition Unknown: Hunt for the Yeti’ in Manhattan, New York, on Tuesday. Brendan McDermid/Reuters
Market Closes for October 4^th, 2016

MarketIndex	Close	Change
DowJones	18168.45	-85.40  -0.47%
S&P 500	2150.50	-10.70  -0.50%
NASDAQ	5289.656	-11.217  -0.21%
TSX	14515.15	-173.89
		-1.18%

International Markets

MarketIndex	Close	Change
NIKKEI	16735.65	+136.98
		+0.83%
HANGSENG	23689.44	+105.01
		+0.45%
SENSEX	28334.55	+91.26
		+0.32%
FTSE 100	7074.34	+90.82
		+1.30%

Bonds

Bonds	% Yield	Previous  % Yield
CND.10 Year Bond	1.064	1.007
CND.30 Year Bond	1.731	1.666
U.S.   10 Year Bond	1.6864	1.6238
U.S.30 Year Bond	2.4121	2.3420

Currencies

BOC Close	Today	Previous
Canadian $	0.75818	0.76228
US$	1.31895	1.31185
Euro Rate1 Euro=		Inverse
Canadian $	1.47774	0.67671
US$	1.1209	0.89255

Commodities

Gold	Close	Previous
London GoldFix	1283.30	1313.30
Oil	Close	Previous
WTI Crude Future	48.69	48.81

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks fell the most in three weeks, as plunging gold prices dragged raw-materials producers lower, while the Bank of Montreal was forced to restate some financial data.
     The S&P/TSX Composite Index sank 1.1 percent to 14,520.92 at 4 p.m. in Toronto, declining for a third session. The S&P/TSX is still up almost 12 percent this year, making it the third- best performing developed market equity index in the world behind New Zealand and the U.K.
     Canadian stock valuations touched the highest level in 14 years Friday and remain more expensive than their U.S. peers, with the S&P/TSX carrying a price-to-earnings ratio of 23.2 compared with 20.2 for the the S&P 500 Index, according to data compiled by Bloomberg.
     Barrick Gold Corp., the world’s largest gold producer, slumped 10 percent as raw-materials producers tumbled 6.7 percent, the worst one-day slide in three years. The gauge has retreated 9.8 percent amid a four-day drop. Gold fell below $1,300 an ounce for the first time in more than three months as the Federal Reserve appears on track to raise interest rates in December. Silver Standard Resources Inc. of Vancouver sank 8.7 percent as silver prices also plunged.
     Goldcorp Inc. lost 8.1 percent to the lowest level since March, capping a third day of losses. The shares have erased 13 percent of their value during this stretch after the Vancouver company shut down one of its biggest mines amid a labor protest.
     Raw-materials and energy remain the top-performing industries in Canada this year, fueling a rebound in the wider gauge. The S&P/TSX Materials Index is still up 36 percent and set to halt its longest yearly losing streak since 1988. Energy producers are second with a 23 percent gain.
     Meanwhile, Bank of Montreal tumbled 1.8 percent, its biggest drop in three months. The nation’s fourth-largest lender restated its regulatory capital ratios for the first three quarters of the year, a move akin to wiping out C$1.3 billion ($1 billion) in excess capital, according to a research note from Canaccord Genuity Group Inc.
     Genworth MI Canada Inc., a residential mortgage insurer, sank a record 8.7 percent to lead declines among mortgage- related companies in Canada amid concern new measures by the federal government to cool the housing market will hurt their businesses. Genworth said more than a third of insured mortgage borrowers would struggle to meet new standards introduced Monday. Real-estate stocks lost 1.5 percent as a group.
     Intact Financial Corp. lost 1 percent, the biggest slide in almost three weeks, after the insurer reported a third-quarter catastrophe pretax loss estimate of C$170 million. Intact blamed the loss on severe weather conditions during the summer months including hail, wind and rain that affected communities across Canada.

US
By Anna-Louise Jackson and John Hyland
     (Bloomberg) — The U.S. stock market may be headed for some turbulence, and possibly a fresh record.
     October’s delivered the most swings of at least 1 percent for the S&P 500 Index since 2000, giving investors reason for caution following a summer of muted volatility. If history’s any guide, though, the benchmark for American equity will post an outsize gain in a period that’s been the best over the last 25 years, with an average advance of 1.9 percent. The S&P 500 slipped 0.5 percent to 2,150.49 at 4 p.m. in New York, 1.8 percent below its all-time high from Aug. 15.
     Its reputation for delivering heightened investor anxiety is inextricably linked to the two worst single days in market history, in 1929 and 1987, and more recently the 17 percent rout during the financial crisis in October 2008 that was the most in 21 years. Those have been shown to be outliers, as investors have tended to reward companies during the third-quarter earnings season, particularly technology, health-care and consumer-discretionary stocks that have notched their best monthly gains on average during the 10th month in data going back to 1991.
     “Those stocks, if they have relatively good numbers, they tend to have a bigger pop after earnings,” said Frank Cappelleri, executive director at Instinet LLC in New York. That doesn’t mean the market will go straight up, he said, noting that the S&P 500 often tests key technical levels before rallying into the end of the month, something that’s happened almost 70 percent of the time since 1997. “We could potentially go through some more volatile activity in the market.”
     While seasonal trends can easily be broken — September’s 0.1 percent decline paled in comparison to weakness that historically has made it the worst month — they provide a useful backdrop as investors consider end-of-year positioning and the commencement of the quarterly earnings next week, Cappelleri said.
     Stocks have gotten off to a rocky start to October, with the S&P 500 slipping 0.8 percent over two days and the CBOE Volatility Index of investor anxiety rising as high as 14.57 after averaging 13.27 over the prior quarter. Confidence has been shaky in the past week amid concerns over Europe’s banking sector, and Deutsche Bank AG in particular. Seattle-based Russell Investments said in a Monday report that further declines would offer an opportunity for investors as the slowly- expanding economy puts a floor under equity prices.
     Tuesday’s decline in the S&P 500 followed hawkish comments from Federal Reserve Bank of Cleveland President Loretta Mester and Richmond Fed President Jeffrey Lacker, who argued in favor of tightening monetary policy sooner than later. Investors see a 61 percent chance of the Fed raising rates in December, up 11 percentage points from a week earlier.
     The higher odds for a rate increase sent Treasury yields rising to a two-week high, damaging the investment case for stocks with high dividend payouts. Utilities tumbled for an eighth day, sliding 2.2 percent to a five-month low, while phone and real-estate shares dropped at least 1.5 percent. The three have the highest yield relative to their dividends among 11 groups in the S&P 500.
     The best dollar rally since Sept. 16 weighed on energy and raw-materials producers, while rising bond yields lifted banks on speculation higher rates will boost their profits. The Dow Jones Industrial Average lost 85.40 points, or 0.5 percent, to 18,168.45. The Nasdaq Composite Index slipped 0.2 percent. About 7.3 billion shares traded hands on U.S. exchanges, 11 percent above the three-month average.
     The next corporate earnings season unofficially kicks off when Alcoa Inc. reports results next week. Analysts forecast a drop of 1.5 percent in S&P 500 companies’ third-quarter profits, which would mark a sixth consecutive three-month decline.
     Should that trend hold, October may have trouble living up to its statistical trend as the market’s best month. And with an uncertain outcome in the U.S. election keeping investors on the edge of their seats, October’s history as the locus for market selloffs could capture attention.
     “They affect the data and contribute to the idea that October is a spooky month,” said Kevin Caron, a Florham Park, New Jersey-based market strategist and portfolio manager who helps oversee $180 billion at Stifel Nicolaus & Co.

 

Have a wonderful evening everyone.

 

Be magnificent!

A man is a universe in miniature, and the universe, a giant living body;
the cosmos is similar to a large man,
and a man is similar to a small cosmos; so say the Sufis.
Kabir

As ever,

 

Carolann

 

Don’t dig up in doubt what you planted in faith.
                              -Elisabeth Elliot, 1926-2015

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:
On Oct. 3, 1990, West Germany and East Germany ended 45 years of postwar division, declaring the creation of a new unified country.
Go to article »
PHOTOS OF THE DAY

Policemen walk through Theaterplatz during celebrations marking German Unification Day in Dresden on Monday. Fabrizio Bensch/Reuters

LEGO statues for the ‘South by South Lawn Festival’ of ideas, arts, and action are on exhibit at the White House in Washington, D.C. on Monday. Gary Cameron/Reuters

 

A photographer takes a picture as a fish balloon floats through hanging speakers, part of the new commission entitled ‘Anywhen’ by French artist Philippe Parreno, in the Turbine Hall at the Tate Modern in London on Monday. The commission transforms the area into an experience that plays with time and space. It is open to the public from Oct. 4 until April 2, 2017. Kirsty Wigglesworth/AP
Market Closes for October 3^rd, 2016

Market Index	Close	Change
Dow Jones	18253.85	-54.30   -0.30%
S&P 500	2161.20	-7.07   -0.33%
NASDAQ	5300.875	-11.127   -0.21%
TSX	14689.04	-36.82
		-0.25%

International Markets

Market Index	Close	Change
NIKKEI	16598.67	+148.83
		+0.90%
HANG SENG	23584.43	+287.28
		+1.23%
SENSEX	28243.29	+377.33
		+1.35%
FTSE 100	6983.52	+84.19
		+1.22%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.007	0.998
CND. 30 Year Bond	1.666	1.657
U.S.    10 Year Bond	1.6238	1.5927
U.S. 30 Year Bond	2.3420	2.3147

Currencies

BOC Close	Today	Previous
Canadian $	0.76228	0.76170
US $	1.31185	1.31285
Euro Rate 1 Euro=		Inverse
Canadian $	1.47068	0.67996
US $	1.12106	0.89201

Commodities

Gold	Close	Previous
London Gold Fix	1313.30	1318.10
Oil	Close	Previous
WTI Crude Future	48.81	47.83

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks slipped for a second day as financial-services shares retreated after the group capped the best quarterly performance since 2013, while Aritzia Inc. surged in its trading debut.
     The S&P/TSX Composite Index fell 0.3 percent to 14,689.04 at 4 p.m. in Toronto, in the first day of trading in the fourth quarter. The index rose 4.7 percent for the three months since the end of June on Friday for a third quarterly gain, its longest streak in two years. The S&P/TSX is up 13 percent this year, making it the the second-best performing developed market equity index in the world behind New Zealand.
     Canadian stock valuations touched highest level in 14 years Friday, and remain more expensive than their U.S. peers, with the S&P/TSX carrying a price-to-earnings ratio of 23.5 compared with 20.3 for the the S&P 500 Index, according to data compiled by Bloomberg.
     Raw-materials producers slumped 1.8 percent to lead losses across seven of 11 industries in the S&P/TSX. Goldcorp Inc. tumbled 4.4 percent after halting work at one of its biggest mines amid a labor protest. Oil and gas companies ended the day 0.3 percent higher after crude settled at the highest level in three months to follow up an 8.5 percent rally last week.
     Financial services companies dropped 0.2 percent as Royal Bank of Canada lost0.4 percent. The group comprises one-third of the Canadian stock market.
     Canadian Finance Minister Bill Morneau introduced a series of new measures to tighten access to mortgage insurance for commercial banks and close a tax loophole on home purchases by foreigners, in an attempt to cool the Vancouver and Toronto real-estate markets without harming other regions.
     The banks joined a retreat in financials in Europe and the U.S., with losses coming as British Prime Minister Theresa May pledged to start pulling the U.K. out of the European Union by March. Deutsche Bank AG said it was poised to reach an agreement with labor representatives paving the way for the elimination of 1,000 jobs. The lender has come under pressure as mounting legal costs have prompted some clients to pull funds and investors to question Deutsche Bank’s financial health. Meanwhile banks across Europe are preparing to cut some 20,000 jobs.
     Aritzia, the Canadian women’s fashion retailer, jumped 11 percent after raising C$400 million in its initial public offering, the largest in Canada this year. Aritzia was started in 1984 by Brian Hill, who’s the current CEO. The company sells clothes and accessories aimed at women aged 15 to 45 has 75 locations across North America.
     Energy and raw-materials producers remain the top- performing industries in Canada this year, fueling a rebound in the wider gauge. The S&P/TSX Materials Index is up 46 percent and set to halt its longest yearly losing streak since 1988, while energy producers are second with a 24 percent gain.
     Ritchie Bros. Auctioneers Inc. added 3 percent for a third day of gains, climbing to a record. The company said they conducted their largest-ever two-day auction in the U.S. last week, selling more than $76 million worth of equipment.

US
By Rita Nazareth and Anna-Louise Jackson
     (Bloomberg) — Government debt fell with stocks after data showing expansion in U.S. manufacturing bolstered wagers that the Federal Reserve will raise interest rates this year. The pound slid on concern Britain may face a so-called hard Brexit.
     Treasuries declined across maturities and the S&P 500 Index fell following three straight weekly gains. U.K. shares climbed the most among western-European markets as the weaker currency boosted exporters with Prime Minister Theresa May saying the country will begin to exit the European Union next year. Colombian assets sank as the government’s failure to gain popular support for a peace deal fueled speculation it won’t be able to deliver key tax reforms. Oil rallied as traders mulled last week’s shift in OPEC policy.
     Traders are keeping a close watch on U.S. economic reports this week, scouring data for clues as to the timing of a potential Fed rate increase. New orders and production swung into expansion territory last month, indicating gradual improvement across America’s manufacturing landscape. At the same time, factories continued to focus on becoming leaner by trimming inventories and cutting employment. Later this week, a key jobsreport could show a pickup in the pace of hiring, according to economists surveyed by Bloomberg.
     “You’ve got to watch the bond markets, that’s been key,” said John Canally, chief economic strategist at LPL Financial in Boston, which oversees about $479 billion. “Markets are warming up to the idea that the Fed is going to hike rates.”
     While the U.S. central bank decided last month to wait for stronger signs of growth before raising rates, some officials have since publicly endorsed a hike in the near term amid signs of a tightening labor market and expectations that inflation will move closer to the Fed’s 2 percent target. Traders are pricing in 60 percent odds of Fed action in December, up from 51 percent a week ago.
     Fed Bank of New York President William Dudley suggested the central bank should be cautious in raising interest rates. Noting concerns from some economists that the risk of a recession is increasing, he told a central-banking seminar hosted at his bank that the Fed may have limited room to cut rates in the event of a downturn in the next few years. That may fuel the need to turn again to unconventional policies, such as purchasing bonds.
     The S&P 500 Index lost 0.3 percent to 2,161.20 as of 4 p.m. in New York. Financial shares in the benchmark index lost momentum after jumping the most in eight weeks on Friday.
      “Data will matter,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee. “Earnings kick off in a couple weeks. I think people have their eyes on that.”
     The reporting season unofficially starts in about a week, when Alcoa Inc. posts results. Analysts forecast a drop of 1.5 percent in S&P 500 company profits in the third quarter, which would mark a sixth consecutive decline.
     Britain’s megacap stocks rose to their highest level in more than 16 months, with companies that get most of their revenue outside the U.K. contributing the most to gains in the FTSE 100 Index. HSBC Holdings Plc, Royal Dutch Shell Plc, GlaxoSmithKline Plc and British American Tobacco Plc all advanced at least 1 percent.
     Henderson Group Plc surged 17 percent after agreeing to buy Janus Capital Group Inc. to create a $320 billion money manager, while peers Aberdeen Asset Management Plc and Jupiter Fund Management Plc advanced 5 percent or more. The Stoxx Europe 600 Index gained 0.1 percent.
     Emerging-market shares extended their best quarterly performance since 2012 as a strong Chinese manufacturing reading eased anxiety over the world’s second-largest economy. Egyptian stocks soared as investors bet that policy makers may devalue the country’s currency, luring back foreign investors.
     Saudi Arabia’s benchmark, which fell to the lowest level since 2011 on Sunday, has lost about $30 billion since the nation last week announced a series of cuts to government salaries and bonuses as part of efforts to slash spending.
     Exchanges in China, Germany and South Korea were shut for holidays on Monday. Asian index futures foreshadowed a mixed picture for Tuesday, with contracts on Japan’s Nikkei 225 Stock Average diverging despite losses in the yen.
     Ten-year U.S. yields rose three basis points, or 0.03 percentage point, to 1.62 percent. The yields on two-year bonds, which are most sensitive to Fed expectations, advanced three basis points to 0.79 percent.
     Benchmark securities posted their first back-to-back declines in two weeks. The U.S. manufacturing report will be followed by data on services and factory orders, while the non- farm payrolls numbers are due out Friday.
     “The most important thing, of course, will be Friday’s payrolls data,” said Philip Marey, a strategist at Rabobank International in Utrecht, Netherlands. “Provided the data goes in the right direction, they will hike but there are considerable downside risks. The market has been prepared by the Fed for a December hike.”
     Treasuries advanced last week as mounting concern over the financial health of Germany’s Deutsche Bank AG roiled financial markets and fueled demand for the safest assets. Those bond gains were pared Friday on a media report that the lender was nearing a settlement with the U.S. Department of Justice that was less than half the amount initially requested.
     Italy’s yield spread with Spanish securities widened to the most in almost two years after an opinion poll showed that the constitutional referendum, on which Prime Minister Matteo Renzi’s political fate hangs, is too close to call.
     Sterling dropped 1 percent to $1.2842, the most among its 16 major peers. British financial-services companies will get no special favors in Brexit negotiations, according to three senior figures in Prime Minister May’s administration. The government will refuse to prioritize the protection of the sector after the U.K. has left the EU, the people said.
     May told delegates at her Conservative Party’s annual conference at the weekend that she’ll curb immigration, stoking speculation the nation is headed toward a Brexit scenario that involved limited access to the EU’s single market.
     “Hard Brexit is a sell for the pound,” said Neil Jones, head of hedge-fund sales at Mizuho Bank Ltd in London. “I know the government line is that they don’t see a need to differentiate between hard and soft Brexit, but the market certainly does.”
     The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, rose 0.1 percent.
     Colombia’s peso weakened 1.7 percent versus the dollar after citizens narrowly rejected a peace agreement with Marxist guerrillas by 50.2 percent to 49.8 percent in a weekend ballot.
     West Texas Intermediate crude climbed 1.2 percent to $48.81 a barrel after rallying 8.5 percent last week. It was the highest close since July 1 and followed a 7.9 percent jump in September.
     While the Organization of Petroleum Exporting Countries outlined an accord to curb output by as much as 750,000 barrels a day last week, Libyan production rose and will advance further this month, according to an official of the state oil company. Independent crude producers are using the rally that followed the agreement to hedge their price risk for next year, banks and consultants said. Rigs targeting oil in the U.S. also rose to the most since February, Baker Hughes Inc. said on its website Friday.
     “This looks like follow through from the OPEC accord last week,” said Thomas Finlon, director of Energy Analytics Group LLC in Wellington, Florida. “For all the holes in this agreement it’s still the first one that’s been reached in eight years.”
     Gold futures for December delivery slipped 0.3 percent to settle at $1,312.70 an ounce on the Comex in New York as silver also slumped. Nickel slid 2.1 percent in London, leading losses among industrial metals.

 

Have a wonderful evening everyone.

 

Be magnificent!

The lamp is empty, the oil is used up.
The tambourine is dead, the dancer lies down,
The fire is out, and no smoke rises from it.
The soul is absorbed into the Unique, and there is no longer a duality.
Kabir

 

As ever,
 

Carolann

 

We shall never know all the good that a simple smile can do.
                                           -Mother Teresa, 1910-1997

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On September 30…
1452: Gutenberg Bible published.
1924: Truman Capote was born.
1928: Elie Wiesel was born.
1955: James Dean killed in auto collision.

CELEBRATE:  Autumn/ Rosh Hashanah/ Yom Kippur/ Michaelmas
                                                                        By John Miller

In the northern hemisphere, the autumn equinox signals Earth’s waning life forces, just as spring proclaimed their rejuvenation.  With the frost, harvest must be gathered.  Amidst ripeness and plenty, we can enjoy Earth’s bounty together.  Yet, after the equinox, the days grow shorter.  Darkness and cold are ascendant, and we must prepare for winter.
   Inwardly, too, we feel the change. The outer dread of nature’s death corresponds to a multitude of fears within.  Fears reflect shortcomings, and to compensate we may appear arrogant.  In many ways, we come face to face with the Shadow, the “who we are” that we don’t want to be.  The journey of individuation is a fearful one, for what could be more daunting than to gaze unflinchingly at ourselves?  This is the task of Rosh Hashanah (October 2^nd) and Yom Kippur (October 11), days of atonement and purification.
   An esoteric Christian picture of the meeting between higher self and lower self is that of Michael and the Dragon.  Michael is consciousness; the Dragon pure impulse.  Though they are polarities, they are also alike.  Michael means “He who is like God” and the Dragon is Lucifer (the Light Bearer), the great angel who took himself to be greater than God.
   Casting Lucifer from the Heavens, Michael struck a gem from Lucifer’s crown.  This became the Philosopher’s Stone – the magical substance that alchemists believed could turn lead into gold.  It stands for transformation and is our guide on paths of wisdom (gnosis).  The alchemical rule, “As above, so below” assures us that ultimately all is one.  We are one with our Dragon.  The gem from Lucifer’s crown can also be the Holy Grail – love.  Out of love, we may embrace the Dragon.  For only by love can that which is flawed – both in ourselves and in the world – be made whole again.

PHOTOS OF THE DAY

A man rides his mountain bike on a trail atop Eggerberg mountain as the sun rises in the western Austrian village of Noesslach on Friday.Dominic Ebenbichler/Reuters

Luxury boats are seen during the 26th Monaco Yacht show in Monte Carlo port on Friday. It is one of the most prestigious pleasure boat shows in the world, highlighting hundreds of yachts for the luxury yachting industry. Eric Gaillard/Reuters
Market Closes for September 30^th, 2016

Market Index	Close	Change
Dow Jones	18308.15	+164.70   +0.91%
S&P 500	2168.27	+17.14   +0.80%
NASDAQ	5312.004	+42.850   +0.81%
TSX	14725.98	-28.57
		-0.19%

International Markets

Market Index	Close	Change
NIKKEI	16449.84	-243.87
		-1.46%
HANG SENG	23297.15	-442.32
		-1.86%
SENSEX	27865.96	+38.43
		+0.14%
FTSE 100	6899.33	-20.09
		-0.29%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.998	0.953
CND. 30 Year Bond	1.657	1.624
U.S.    10 Year Bond	1.5927	1.5582
U.S. 30 Year Bond	2.3147	2.2767

Currencies

BOC Close	Today	Previous
Canadian $	0.76170	0.76089
US $	1.31285	1.31424
Euro Rate 1 Euro=		Inverse
Canadian $	1.47574	0.67763
US $	1.12407	0.88962

Commodities

Gold	Close	Previous
London Gold Fix	1322.50	1318.10
Oil	Close	Previous
WTI Crude Future	48.24	47.83

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — A scorching rally in gold and other commodities has driven Canadian stocks to their priciest level since 2002, raising concerns about the endurance of a yearlong equities surge as corporate earnings remain stuck in a rut.
     Stocks in the S&P/TSX Composite Index touched 23.6 times earnings Friday, the highest since September 2002, before closing slightly lower. The benchmark for Canadian equities has gained 13 percent this year, the second-most among developed markets after New Zealand, buoyed by rallies of at least 25 percent in gold and crude. That’s resulted in a 15 percent price premium over U.S. stocks, the widest gap since 2009.
     Valuations have become stretched as share prices climb while corporate earnings remain mired in one of the worst slumps since the financial crisis. Profits for companies in the S&P/TSX retreated 11 percent in the second quarter amid lackluster economic growth. Energy producers in particular have been a drag, as the industry posted a loss last year for the first time since at least 2002.
     Analysts surveyed by Bloomberg expect earnings to rise in the quarter that ends Friday. But the index would need to see 25 percent profit growth for the ratio to prices to fall back to its five-year average of 18.8 percent, according to data compiled by Bloomberg.
     For Shailesh Kshatriya, director of Canadian strategies at Russell Investments, there’s not much more room for shares to gain.                          “Volatility will be higher and cash is still king at the moment,” said Kshatriya, whose firm manages about C$316 billion ($241 billion) globally and has been building cash reserves across various Canadian multi-asset portfolios. “North America is more expensive than the rest of the world, and while Canada is a tad bit more attractive, there is far more uncertainty with the economy. There could be a correction this year and we hope it does, we have dry powder.”
     The S&P/TSX ended the day lower at 14,725.98 at 4 p.m. in Toronto, paring its gain in September to 0.9 percent as raw- materials producers fell with gold. The gauge is still up 4.7 percent since the end of June, capping its best quarterly performance since 2014. Information technology and industrial companies drove gains in the quarter, led by Brookfield Business Partners LP and BlackBerry Ltd.
     Canadian shares have joined a rally in global equities this year as central banks from Asia to Europe and America have tried to stoke sluggish growth with monetary stimulus. While the measures have boosted asset prices, they’ve failed to revive flagging corporate profits, leaving many valuation metrics above long-term averages.                        
     Irwin Michael, fund manager at IA Michael Investment Counsel in Toronto, said the relatively high equity valuations don’t necessarily signal an end to the equity rally, especially as investors stare at historically low yields on sovereign bonds.
     “The rules of the game have changed with interest rates at record lows,” he said. His firm manages about C$400 million. “I go out and buy a bunch of bonds yielding negative rates, I’m guaranteed to lose money. We’d get fired for that.”
     Michael has bought into dividend-paying stocks through the year — including Brookfield Property Partners LP, Algonquin Power & Utilities Corp. and Fortis Inc. — which are particularly attractive because they’ve regularly raised their payouts, he said.
     “If you can find a good, liquid, dividend-paying company then yes, why not?” he said.
     The Federal Reserve’s decision to keep rates unchanged since a hike in December has pushed the U.S. dollar lower, bolstering prices for commodities denominated in the greenback.
Energy and raw-materials producers are the top-performing industries in Canada this year as a result. The S&P/TSX Materials Index is up about 49 percent and set to halt its longest yearly losing streak since 1988, while energy producers are second with a gain of almost 24 percent.
     Canadian investors have plenty of other worries beyond valuations, Kshatriya said. The unexpected vote by the U.K. to secede from the European Union, uncertainty about the implications of the U.S. presidential election on the global economy and the spread of negative interest rates in Europe are among his biggest concerns.
     “There is plenty of event risk,” he said.
     Meanwhile, the Canadian economy has had to grapple with a disastrous wildfire in Alberta’s oil sands disrupting a million barrels a day of production in May, while a persistent lack of export growth had frustrated Bank of Canada Governor Stephen Poloz.
     But the outlook for Canada’s economy is starting to brighten. GDP expanded 0.5 percent in July, Statistics Canada said Friday from Ottawa. That was much faster than the 0.3 percent economists expected, buttressing expectations for 3.3 percent growth for the third quarter.

US
By Dani Burger
     (Bloomberg) — U.S. stocks rallied, with the Dow Jones Industrial Average rising more than 160 points, as worries over the health of European banks diminished after a report said Deutsche Bank AG is nearing a less-costly settlement with regulators than investors feared.
     Relief swept over equities as Agence France-Presse reported the German lender is near a $5.4 billion deal with the Justice Department, less than half an initial request, to settle a probe related to bad mortgages. Financial shares in the S&P 500 Index jumped the most in eight weeks, after falling yesterday to the lowest since Aug. 2. Costco Wholesale Corp. increased the most in more than two months to boost consumer-staples companies after its earnings beat estimates.
     The S&P 500 rose 0.8 percent to 2,168.27 at 4 p.m. in New York, posting a fourth consecutive quarterly gain and the strongest this year. The index closed near its average price during the past 50 days. The Dow rose 164.70 points, or 0.9 percent, to 18,308.15 today. The Nasdaq Composite Index added 0.8 percent. About 7.6 billion shares traded hands on U.S. exchanges, 15 percent higher than the three-month average.
     “There’s a little bit of recognition of the reality that Deutsche Bank is not Lehman,” John Stoltzfus, chief market strategist at Oppenheimer & Co. in New York, said by phone. “The banks, as a result of all the regulatory changes since the world crisis, are in better shape to withstand this. The other side is that we’re coming to the quarter end, and people are beginning to realize that September was not as bad as many thought it was.”
     Concerns about weakness among European banks and the potential impact on the global economy have buffeted markets, with the Dow lurching by triple digits in every session this week for the first time since January. Despite today’s rally, the S&P 500 closed with a second-straight monthly drop, down 0.1 percent. The CBOE Volatility Index wiped out a September climb, sliding 5.2 percent today to 13.29.
     The main U.S. stocks benchmark posted a 3.3 percent third- quarter gain, its best this year, bolstered by technology shares as the group capped the strongest period since 2013. Financial stocks rose 4 percent, while industrials added 3.6 percent as American Airlines Group Inc. and United Continental Holdings Inc. soared more than 27 percent since June.
     Deutsche Bank wiped out a 9 percent drop in German trading Friday to rise 6.4 percent after the AFP report. Its shares tumbled to a record low yesterday as a Bloomberg News report signaling growing concern among some of the lender’s clients exacerbated pressure caused by the DOJ’s initial demand for $14 billion to settle the probe. Chief Executive John Cryan told staff in a memo Friday the bank’s balance sheet is safer than at any point in the past two decades.                         
     Commerzbank AG said yesterday that it will cut one in five jobs, suspend dividends and shrink securities trading in a bid to cut costs, while ING Groep NV is reported to be planning to announce thousands of job cuts next week. In the U.S., the future of Wells Fargo & Co. Chief Executive Officer John Stumpf looks tenuous after an intense grilling by lawmakers over the unauthorized-account scandal.
     “It’s not just the potential risk in Deutsche Bank, there are now lots of concerns about the global banking system and the risk spilling out of European banks,” said Michael Ingram, a market strategist at BGC Partners in London. “We have a very connected financial system. A zombie financial system at some point translates into a zombie economy.”
     While markets calmed after the Federal Reserve’s decision last week to leave rates unchanged, some central-bank officials have since publicly endorsed a rate hike in the near-term. Traders are now pricing in a 58 percent chance of higher borrowing costs in December.                    With policy makers watching for signs of stronger inflation, a report today showed the Fed’s preferred measure picked up, rising 1.7 percent from a year earlier, though it still lags the central bank’s 2 percent target. Consumer spending was little changed last month as income growth cooled, while the gain in personal income was the weakest since a decline in February. A separate report showed consumer confidence rose in September for the first time in four months.
     Investors are also awaiting quarterly reports from corporate America. Alcoa Inc. unofficially kicks off the next earnings season in less than two weeks, and analysts forecast profit at S&P 500 members fell 1.5 percent in July-September period, which would mark a sixth consecutive decline.
     In Friday’s trading, eight of 11 main industries in the S&P 500 gained as the benchmark returned to within 1 percent of a record set on Aug. 15. Financial companies rose 1.4 percent to reverse nearly all of a 1.5 percent loss yesterday, while energy and health-care shares advanced more than 1 percent. Utilities fell for a sixth day, the longest losing streak in seven weeks.                         
     Banks jumped the most in almost two months, with Citigroup Inc. and Bank of America Corp. rallying at least 3.1 percent. In the broader financial group, Morgan Stanley and Charles Schwab Corp. added more than 2.8 percent.
     Semiconductors were among the day’s leaders as the group finished with the strongest quarterly advance in seven years, rising 18 percent. Qualcomm Inc. gained 1.6 percent today, extending its climb since June to 28 percent, the best since 2010. The shares jumped Thursday on a report it’s considering purchasing NXP Semiconductors NV in a deal that would be valued at about $30 billion. Nvidia Corp. climbed 46 percent in the quarter, the most in a decade.
     Consumer staples rose for the third time in four days, trimming the worst quarterly slide in five years. Wal-Mart Stores Inc. jumped 2 percent, and Procter & Gamble Co. gained 1.7 percent to an eight-month high following Costco’s better- than-forecast earnings.

Have a wonderful weekend everyone.

 

Be magnificent!

Nature is forever giving us chance after chance at what we call rebirth and death,
and we, in our folly, in our fear of death, fail to understand that which represents a new journey,
a new page on which to write, and thus to believe in a new beginning for ourselves….
The truth is that my body has come to existence, and that it will cease to exist.  I am eternal.
Parthasarathi Rajagopalachari

As ever,

 

Carolann

 

Over time, you weed out luck.
                        -Billy Beane, b. 1962

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

CALIFORNIA POEM

There’s trouble on the mountain
And the valley’s full of smoke
There’s crying on the mountain
And again the same heart broke.

The lights are on past midnite
The curtains closed all day
There’s trouble on the mountain
The valley people say.
                     -Johnny Cash, 1932-2003

PHOTOS OF THE DAY

A member of the gallery stands inside a piece called ‘Passage,’ by artist Antony Gormley, which forms part of an exhibition entitled ‘Fit’ at the White Cube gallery in London on Thursday. Peter Nicholls/Reuters

Israeli member of parliament Mickey Levy (3rd r.) stands in front of the flag-draped coffin of former Israeli President Shimon Peres as he lies in state at Knesset plaza in Jerusalem on Thursday. Amir Cohen/Reuters
Market Closes for September 29^th, 2016

Market Index	Close	Change
Dow Jones	18143.45	-195.79   -1.07%
S&P 500	2151.13	-20.24   -0.93%
NASDAQ	5269.156	-49.391   -0.93%
TSX	14754.55	+23.12
		+0.16%

International Markets

Market Index	Close	Change
NIKKEI	16693.71	+228.31
		+1.39%
HANG SENG	23739.47	+119.82
		+0.51%
SENSEX	27827.53	-465.28
		-1.64%
FTSE 100	6919.42	+70.04
		+1.02%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.953	0.980
CND. 30 Year Bond	1.624	1.644
U.S.    10 Year Bond	1.5582	1.5719
U.S. 30 Year Bond	2.2767	2.2913

Currencies

BOC Close	Today	Previous
Canadian $	0.76089	0.75760
US $	1.31424	1.31996
Euro Rate 1 Euro=		Inverse
Canadian $	1.47468	0.67812
US $	1.12207	0.89121

Commodities

Gold	Close	Previous
London Gold Fix	1318.10	1322.50
Oil	Close	Previous
WTI Crude Future	47.83	47.05

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks ended higher Thursday after swinging between gains and losses, as oil a and gas producers extended a rally that offset weakness among lenders sparked by worries over Deutsche Bank AG’s finances.
     Bloomberg reported that some Deutsche Bank clients are concerned about doing business with the firm after the U .S. Justice Department requested $14 billion to settle an investigation into residential mortgage-backed securities.
     The S&P/TSX Composite Index rose 0.2 percent to 14,754.55 at 4 p.m. in Toronto, recovering from a brief dip after an earlier advance of as much as 0.6 percent. The index has risen 4.9 percent since the end of June and is headed for a third quarterly gain, its longest streak in two years. The S&P/TSX is up more than 13 percent this year, making it the the second-best performing developed market equity index in the world behind New Zealand.
     Not coincidentally, Canadian stocks are now more expensive than their U.S. peers, with the S&P/TSX carrying a price-to- earnings ratio of 23.6 compared with 20.6 for the the S&P 500 Index. The current valuation of Canadian equities is near the highest levels in 14 years, according to data compiled by Bloomberg.
     Financial shares lost 0.2 percent after Bloomberg reported that a number of funds that clear derivatives trades with Deutsche Bank have withdrawn some excess cash and positions held at the firm. Meanwhile, U.S. lender Wells Fargo & Co. is now facing Justice Department sanctions over improperly repossessing cars owned by members of the military, according to two people with knowledge of the investigation. A penalty of as much as $20 million is expected. This comes after weeks of pummeling over the bank’s practice of opening fraudulent customer accounts.
     Energy producers continued to rally following an agreement by OPEC members for their first output cut in eight years. Suncor Energy Inc. rose 2.3 percent and Canadian Natural Resources Ltd. gained 2.4 percent as the energy sector advanced 1.4 percent.
     The S&P/TSX Energy Index has rallied 5.1 percent in its best two-day gain since March, rising to a three-week high. Meanwhile, raw-materials producers slipped 0.1 percent as gold drifted to a loss amid gains in the dollar on evidence the U.S. economy is improving. Torex Gold Resources Inc. declined 2.2 percent. Kirkland Lake Gold Inc. fell 7.6 percent, its biggest loss in two months, after agreeing to buy Newmarket Gold Inc. in a stock deal valued at C$1.01 billion to create a producer with operations in Canada and Australia.
     U.S. gross domestic product rose 1.4 percent in the second quarter, ahead of analysts’ forecasts, while jobless claims increased less than predicted last week. The dollar climbed against most major peers, after a three-day slide, as traders priced in a 54 percent chance the Federal Reserve will raise rates in December.
     Crude added 1.7 percent in New York to the highest in a month, erasing an earlier decline, after posting the biggest advance since April on Wednesday. Energy and raw-materials producers are the top-performing industries in Canada this year, fueling a rebound in the wider gauge. The S&P/TSX Materials Index is up 51 percent and set to halt its longest yearly losing streak since 1988, while energy producers are second with a 24 percent gain.

US
By Joseph Ciolli and Dani Burger
     (Bloomberg) — U.S. stocks fell as banks retreated amid growing concern that Deutsche Bank AG’s woes will spread to the global financial sector. Health-care shares sank on speculation tighter regulations will crimp profits.
     Financial shares erased gains and tumbled 1.5 percent after a Bloomberg News report that signaled growing concern among some Deutsche Bank AG clients roiled markets. A number of funds that clear derivatives trades with Deutsche withdrew some excess cash and positions held at the lender, according to an internal bank document seen by Bloomberg. Johnson & Johnson and Pfizer Inc. fell more than 1.7 percent, pacing declines among drug companies.
     The S&P 500 Index slid 0.9 percent to 2,151.13 at 4 p.m. in New York, after falling as low as 2,145, the level that marked the bottom of a selloff on Monday. The Dow Jones Industrial Average declined 195.79 points, or 1.1 percent, to 18,143.45, and the Nasdaq Composite Index lost 0.9 percent. About 7.7 billion shares traded hands on U.S. exchanges, 17 percent more than the three-month average.
     “There’s some problems in the financial industry now,” Brian Frank, portfolio manager at Key Biscayne, Florida-based Frank Capital Partners LLC, said by phone. “There’s no fear and no volatility in the stock market so something like Deutsche Bank could make people say, maybe we shouldn’t be trading at such high valuations. It doesn’t make it easier for U.S. banks, especially with what’s going on with Wells Fargo.”
     The S&P 500 trades at 18.4 times forecast earnings, the highest since 2002. The main U.S. equity benchmark slipped below its average price during the past 50 days on Thursday, while erasing its climb for the month. Stocks fluctuated earlier amid a gain in energy shares sparked by the first output-reduction decision by OPEC in eight years.
     All of the 11 main industries in the S&P 500 retreated Thursday. Health-care shares paced declines with a 1.8 percent rout, led by drugmakers on concern that a Hillary Clinton presidency would tighten regulations on the industry and hurt profits. Financials and utilities tumbled more than 1.4 percent. Banks in the benchmark sank 1.6 percent.
     Deutsche Bank fell to all-time lows on Monday amid concerns that mounting legal bills may force the lender to raise capital. That dragged lenders in the S&P 500 to the steepest slide in almost three months. The CBOE Volatility Index on Thursday jumped nearly 27 percent before paring the surge to 13 percent by the close of trading. The measure of market turmoil known as the VIX is now on track for a second straight monthly gain.
     Investors were also reminded today that borrowing costs may be rising before year-end, with a handful of Federal Reserve officials publicly endorsing a rate hike in the near-term. Fed Bank of Atlanta President Dennis Lockhart on Thursday said the central bank is nearing its goals of maximum employment and steady inflation near 2 percent, a day after Chair Janet Yellen testified that jobs growth will likely soon warrant tighter policy.
     The latest eruption of selling spurred by anxiety over banks reignited a bout of turbulence from earlier this month. Markets had calmed briefly, after the Fed’s decision last week to leave rates unchanged and signals of a slower pace of future increases soothed investors. The S&P 500 is on the verge of a second-straight monthly loss and its worst since January.
     Wells Fargo & Co. fell 2.1 percent and was headed toward the worst month since 2010, as Chief Executive John Stumpf endured a second day of withering assaults from lawmakers furious over the bank’s fake-account scandal. The bank was also said to be facing sanctions over improperly repossessing cars owned by members of the military. Among other banks, Citigroup Inc. dropped 2.3 percent to a seven-week low.
     Within the health-care group, biotechnology shares skidded to a three-month low, with EpiPen maker Mylan NV losing 4.4 percent, while Celgene Corp. and Allergan Plc declined at least 2.8 percent. Drug giant Merck & Co. fell 2.2 percent, the second-worst in the Dow behind Goldman Sachs Group Inc.’s 2.8 percent retreat.
     Energy producers were little changed along with phone companies. Crude oil extended yesterday’s rally, rising to a one-month high after OPEC’s agreement to reduce production. Murphy Oil Corp. and Transocean Ltd. added more than 4.9 percent. Still, refiners Valero Energy Corp. and Tesoro Corp. lost at least 6.1 percent to help offset those gains.

 

Have a wonderful evening everyone.

 

Be magnificent!

Man progresses, from epoch to epoch, toward the full realization of his soul,
of this soul that is greater than all the riches he can accumulate,
than all the actions he can accomplish and all the theories he can set forth,
this soul that continues onward, never ending in death or dissolution.
Rabindranath Tagore

As ever,

 

Carolann

 

The point is not to pay back kindness but to pass it on.
                                          -Julia Alvarez, b. 1950

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

THOUGHT FOR THE DAY:
 

PHOTOS OF THE DAY

A visitor views the work of artists Gonzalo Duran and Cheri Pann at their Mosaic Tile House in Venice, Calif. Mario Anzuoni/Reuters

A boy in traditional dress adjusts another’s headgear before a group photo following a ceremony to observe the 2567th birthday of Confucius in Beijing on Wednesday. Confucius was a famed thinker and philosopher in Chinese history. Mark Schiefelbein/AP
Market Closes for September 28^th, 2016

Market Index	Close	Change
Dow Jones	18339.24	+110.94   +0.61%
S&P 500	2171.37	+11.44   +0.53%
NASDAQ	5318.547	+12.835   +0.24%
TSX	14731.43	+173.39
		+1.19%

International Markets

Market Index	Close	Change
NIKKEI	16465.40	-218.53
		-1.31%
HANG SENG	23619.65	+47.75
		+0.20%
SENSEX	28292.81	+69.11
		+0.24%
FTSE 100	6849.38	+41.71
		+0.61%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.980	0.966
CND. 30 Year Bond	1.644	1.635
U.S.    10 Year Bond	1.5719	1.5582
U.S. 30 Year Bond	2.2913	2.2789

Currencies

BOC Close	Today	Previous
Canadian $	0.76389	0.75760
US $	1.30908	1.31996
Euro Rate 1 Euro=		Inverse
Canadian $	1.46830	0.68106
US $	1.12162	0.89156

Commodities

Gold	Close	Previous
London Gold Fix	1322.50	1327.00
Oil	Close	Previous
WTI Crude Future	47.05	44.67

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks halted a three-day slide as energy producers jumped the most since February after OPEC agreed to cut production for the first time in eight years, while BlackBerry Ltd. rose to the highest in six months after saying it will stop making smartphones.
     The S&P/TSX Composite Index surged 1.2 percent to 14,731.43 at 4 p.m. in Toronto, extending gains in afternoon trading after sinking 1.6 percent in the past three sessions. The index has advanced 4.7 percent since the end of June, the most in two years.
     That’s made Canadian stocks more expensive than U.S. peers, with a price-to-earnings ratio of 23.5 maintaining a 15 percent premium over the S&P 500 Index. The current valuation of Canadian equities is near the highest levels in 14 years, according to data compiled by Bloomberg.
     Canadian Natural Resources Ltd. and Crescent Point Energy Corp. surged at least 5.9 percent to lead a 3.7 percent rally among energy producers as nine of 11 industries in the S&P/TSX advanced. Financial companies increased 0.8 percent, with Manulife Financial Corp. up 1.4 percent, while Bank of Nova Scotia rose 1 percent.
     Crude soared 5.3 percent in New York, settling at $47.05 a barrel for the biggest gain since April. Producers in the Organization of Petroleum Exporting Countries said they will drop production to 32.5 million barrels a day, nearly 750,000 barrels lower from what it pumped in August, according to a delegate briefed on the matter. The group had adopted a pump-at- will policy in 2014.
     Saudi Arabia and Iran had earlier signaled they wouldn’t come to any agreement on production cuts at the meeting in Algiers, while laying groundwork for a deal at the next official meeting in Vienna. Instead, this deal points to a new phase in relations for the two nations, which have clashed on oil policy in the past.
     Energy and raw-materials producers are the top-performing industries in Canada this year, fueling a rebound in the wider gauge after slumping the most since the 2008 financial crisis last year. The S&P/TSX Materials Index is up 51 percent and set to halt the longest yearly losing streak since 1988, while energy producers are second with a 22 percent gain.
     BlackBerry rallied 4.6 percent to the highest since March, as the Waterloo, Ontario-based company said it will hand over production of its once-iconic smartphones to overseas partners to focus on its more profitable software business. BlackBerry also reported second-quarter adjusted earnings at break-even, compared with expectations for a loss, while revenue fell short of analysts’ projections.
     DHX Media Ltd., the children’s TV programming company, lost 3.3 percent to close at the lowest in almost three months after reporting fourth-quarter adjusted earnings and sales that trailed analysts’ estimates. The company also boosted its dividend.

US
By Joseph Ciolli
     (Bloomberg) — U.S. stocks rose, with energy shares rallying the most in eight months, as OPEC agreed to a preliminary deal that will cut production for the first time in eight years.
     Oil and gas producers in the S&P 500 Index posted the biggest jump since January as crude futures surged more than 5 percent. Equities had earlier swung between gains and losses as oil prices whipsawed amid optimism for an agreement and mixed data on stockpiles. The afternoon rally in energy overshadowed a 3.8 percent drop in Nike Inc. and AT&T Inc.’s 1.5 percent retreat that dragged down phone companies.
     The S&P 500 rose 0.5 percent to 2,171.37 at 4 p.m. in New York, erasing a 0.4 percent slide and closing above its average price during the past 50 days for the first time in almost a week. The gauge also wiped out a monthly decline. The Dow Jones Industrial Average rose 110.94 points, or 0.6 percent, to 18,339.24, with two stocks — Exxon Mobil Corp. and Chevron Corp. — contributing more than 40 percent of the gain. The Nasdaq Composite Index added 0.2 percent.
     “While the correlation between oil and stocks has loosened, it’s still dictated some trading this week,” said Matt Maley, an equity strategist in New York at Miller Tabak & Co LLC. “We’re about to head back into earnings season, when we’ll see if stocks can get the pick-up the market’s been hoping for.”
     OPEC agreed to drop production to a range of 32.5 to 33 million barrels per day, said Iran’s Oil Minister Bijan Namdar Zanganeh, following a meeting in Algiers. While some members of the organization will have to cut output, Iran won’t have to freeze production, he said. Many of the details remain to be worked out and the group won’t decide on targets for each country until its next meeting at the end of November.
     Federal Reserve Chair Janet Yellen testified today on bank supervision and regulation while also including remarks on monetary policy. She told lawmakers the U.S. will continue to add jobs at a solid rate, though the recent average pace is probably higher than what’s sustainable over the long term and would eventually cause the economy to overheat. She also said the current course calls for a gradual increase in interest rates, something that doesn’t have a fixed timetable.
     Meanwhile, investors are looking for signs that the economy is strengthening and awaiting the next earnings season, which will kick off in about two weeks. A report today showed orders for durable goods were little changed in August, while shipments of capital equipment declined for a fourth month, indicating lingering weakness in manufacturing. A revised reading on second-quarter growth, pending home sales as well as measures of personal income and spending are due later this week.
     In addition to eking out a gain for the month, the S&P 500 is also now on pace for a third weekly increase, which would be the most since July. The CBOE Volatility Index fell 5.4 percent today to 12.39, extending its two-day decline to almost 15 percent after an 18 percent jump on Monday. The measure of market turbulence known as the VIX is now down almost 8 percent in September, erasing a climb that reached 35 percent two weeks ago.
     In Wednesday’s trading, energy companies jumped 4.3 percent as eight of the S&P 500’s 11 main industries advanced. Raw- materials and industrials added more than 0.6 percent. Phone companies dropped 1 percent, after losing as much as 1.6 percent. Utilities fell for a fourth day, while biotechnology shares slipped to weigh on the health-care group. About 7.1 billion shares changed hands on U.S. exchanges, 7.6 percent more than the three-month average.
     Leading energy, Exxon Mobil rallied 4.4 percent, the most since February, and Chevron added 3.2 percent. Murphy Oil Corp. and Devon Energy Corp. increased more than 8.3 percent. Nine of the S&P 500’s 10 strongest performers today were energy names. The lone outsider was copper miner Freeport-McMoRan Inc., which gained 6.9 percent.
     AT&T fell the most in two weeks after UBS Group AG downgraded the shares to neutral from buy, and lowered its price target to $43 from $46. The firm cited, in part, higher competition in the wireless business. Verizon lost 0.8 percent after declining as much as 1.3 percent.
     Nike had its worst session since March, after disappointing futures orders renewed concerns that competitors are crimping the sneaker maker’s growth.

Have a wonderful evening everyone.

 

Be magnificent!

There are thousands of lives in one single life.
Swami Prajnanpad

As ever,

 

Carolann

 

Fortune favors the bold.
      -Virgil, 70 BC-19 BC

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7