Category: Newsletters

Hello All,

Tangents:

As I have previously stated, we listen to a lot of National Public Radio here at Queensbury Securities. While it is mainly an American station reporting American news interspersed with smooth jazz covers of the “Mickey Mouse Song”, it is also a local Seattle station.  So aside from hearing about the American election, you also get interesting little Seattle factoids like the Space Needle turning 50.  And how does Seattle choose to celebrate this milestone? By sending a member of the general public to space!

That’s right, in what is being called the Space Race 2012 Gregory Schneider, a recent law-school grad from Tucson, Arizona, beat out over 50,000 applicants to win a trip to space.

The trip is run by the private company Space Adventures and comes with a hefty price-tag of $110,000 and offers a zero-gravity experience and stunning views of the Earth.

But don’t get it wrong, Gregory Schneider didn’t have it easy. Finalists had to first win a lottery to enter the contest, then bring in enough votes from supporters online. Finally, they had to compete against each other at tasks such as maneuvering robots and doing some climbing on the exterior of Space Needle.

The date of the voyage has yet to be determined, but you have to admit that is a pretty awesome prize!

photos of the day May 10, 2012

Cuban-American artist Jose Parla workson a creation on a building wall in Havana, Cuba, for the upcoming 11th Havana Biennial contemporary art exhibition. The project, titled ‘Wrinkles Of The City,’ involves combining French artist J.R’s pictures of Cuban elderly people in the neighborhood with Parla’s calligraphic messages, and then pasting them on walls around the city.- Desmond Boylan/Reuters

Filipino fishermen unload fish from a boat in Masinloc, Zambales, Philippines. Masinloc is the nearest land, about 128 nautical miles away, from the disputed Scarborough Shoal. China warned its citizens in Manila to stay off the streets and take precautions during planned anti-Chinese protests on Friday, a sign of mounting tensions during a standoff in the resource-rich South China Sea.- Erik De Castro/Reuters

Market Closes for May 10, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12855.04	+19.98
		-+0.16%
S&P 500	1357.99	+3.41%
		-+0.25%
NASDAQ	2933.64	-1.07%
		-0.04%
TSX	11736.17	+61.16
		+0.52%

International Markets

Market  Index	Close	Change
NIKKEI	9009.65	-35.41
		-0.39%
HANG  SENG	20227.28	-103.36 -0.51%
SENSEX	16420.05	-59.53
		-0.36%
FTSE 100	5543.95	+13.90
		-0.25%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.985	1.984
CND.   30 Year Bond	2.497	2.511
U.S.   10 Year Bond	1.8670	1.8227
U.S.   30 Year Bond	3.0407	3.0249

Currencies

BOC Close	Today	Previous
Canadian $	1.00329	1.00247
US   $	0.99672	0.99743
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29743	0.77075
US  $	1.29318	0.77329

Commodities

Gold	Close	Previous
London Gold   Fix	1593.67	1589.34
Oil	Close	Previous
WTI Crude Future	97.08	96.81
BRENT	112.64	113.01

Market Commentary:

Canada

By Joseph Ciolli

May 10 (Bloomberg) — Canadian stocks rebounded from a six- day skid, led by banks and energy producers, as Greece attempted to form a new government and the U.S. reported a decline in jobless claims.

Suncor Energy Inc., Canada’s largest oil and gas producer, climbed 0.8 percent. Canadian Natural Resources Ltd., the country’s third-biggest energy company, increased 1.5 percent. Royal Bank of Canada, the nation’s biggest lender, rose 1.1 percent. Teck Resources Ltd., the country’s biggest base-metals producer, rose 0.5 percent as copper prices increased.

The Standard & Poor’s/TSX Composite Index rose 61.16 points, or 0.5 percent, to 11,736.17 in Toronto.

“You’ve had six straight days of negativity and the market was bound to bounce back,” Irwin Michael, a portfolio manager at ABC Funds in Toronto, said in a telephone interview. Michael’s firm oversees C$1 billion ($1 billion). “It’s a bit of a relief rally. Investors are taking a pause and looking ahead.”

The benchmark gauge declined 5.3 percent during the six-day slump and is heading for a second straight weekly decline. Last week it fell as a U.S. report showed employers added fewer jobs than forecast in April and commodity prices dropped. Energy and mining shares account for 43 percent of Canadian stocks by market value.

Canadian energy companies gained today as U.S. first-time claims for jobless benefits fell last week to a one-month low. Suncor Energy climbed 0.8 percent to C$29.30. Canadian Natural Resources increased 1.5 percent to C$31.15. Crescent Point Energy Corp., a western Canadian oil and gas producer, rose 3.6 percent to C$42.38.

Financial companies in the S&P/TSX increased as former Greece Finance Minister Evangelos Venizelos attempted to form a government that will ensure the nation remains in the euro area. Global stocks slumped yesterday amid the political impasse as concern grew that Greece’s debt crisis is worsening.

Royal Bank of Canada rose 1.1 percent to C$53.95. Toronto- Dominion Bank, Canada’s second-largest lender, increased 0.7 percent to C$80.19. Bank of Nova Scotia, the country’s third- largest lender, gained 0.5 percent to C$52.80.

The S&P/TSX Diversified Metals and Mining index rose as copper advanced for the first time in three days after the news from Greece eased concerns that the country will default on loans, boosting the outlook for global economic growth and commodity demand.

Teck Resources rose 0.5 percent to C$33.42. Ivanhoe Mines Ltd., Rio Tinto Group’s partner in the Oyu Tolgoi Mongolian gold and copper mine, gained 1.7 percent to C$9.99.

Linamar Corp., Canada’s second-largest auto-parts maker, surged 12 percent to C$20.89 after reporting first-quarter earnings excluding some items of 59 Canadian cents, exceeding the average analyst estimate of 53 Canadian cents.

Magna International Inc. rose 2.3 percent to C$43.64. North America’s largest auto-parts supplier reported that first- quarter profit rose 6.5 percent and raised its full-year sales forecast.

US

By Rita Nazareth

May 10 (Bloomberg) — U.S. stock futures fell as investors assessed a disclosure by JPMorgan Chase & Co., the biggest U.S. bank by assets, that it had a $2 billion trading loss after positions in credit securities proved riskier than expected.

JPMorgan tumbled 6.6 percent after the close of regular trading as Chief Executive Officer Jamie Dimon said the bank made egregious mistakes and that trading losses were “self inflicted.” Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley lost at least 2.2 percent.

Standard & Poor’s 500 Index futures expiring in June slumped 0.7 percent to 1,348 at 6:26 p.m. New York time. Financial companies in the S&P 500 had the biggest gain among 10 groups in 2012, surging 15 percent, or almost double the benchmark measure’s advance. Dow Jones Industrial Average futures dropped 78 points, or 0.6 percent, to 12,756.

“JPMorgan has held to a higher standard among the banks,” Walter Todd, who oversees about $950 million as chief investment officer at Greenwood Capital in Greenwood, South Carolina, said in a telephone interview. “If this happens to them, it raises the question: if they have these issues, who else does?”

JPMorgan led a slump in financial shares after the close of regular trading. The group comprises 15 percent of the S&P 500 for the second-biggest weighting among 10 industries. The bank’s shares retreated 6.6 percent to $38.05. It gained 0.3 percent in regular trading, paring a rally of as much as 1.9 percent.

Bank of America shares lost 2.7 percent to $7.50. Citigroup retreated 3.7 percent to $29.52. Goldman Sachs sank 2.2 percent to $103.94. Morgan Stanley slumped 2.6 percent to $15.20. Wells Fargo & Co. lost 1.6 percent to $32.66.

The cost of protecting debt of JPMorgan from default rose to the highest level in a month. Credit-default swaps on the bank climbed to 118.5 basis points as of 5:42 p.m. in New York, according to prices from data provider CMA, which is owned by CME Group Inc. The contracts were at about 111 basis points before the announcement.

Dimon said JPMorgan lost about $2 billion after a failure in its chief investment office, which the bank says focuses on hedging. The office has been transformed in recent years under Dimon into a unit that makes bigger and riskier speculative bets with the bank’s money, according to five former employees, Bloomberg News reported April 13.

“We’re accountable, and what happened violates our own standards and principles about how we want to operate the company,” Dimon said in a conference call today. “This is not how we want to run a business.”

On April 13, JPMorgan reported a 3.1 percent drop in earnings, a smaller decline than analysts estimated as mortgage revenue surged and trading almost doubled from the fourth quarter. The bank benefited from gains in mortgage lending as low interest rates and federal incentive programs encouraged homeowners to refinance.

Earnings at financial companies in the S&P 500 grew 12 percent in the first quarter, for the second-biggest increase among 10 industries, according to data compiled by Bloomberg. That’s almost double the growth of profits of S&P 500 companies in the period. On average, 66 percent of financial companies in the benchmark gauge beat analysts’ estimates in the period.

Warren Buffett, whose Berkshire Hathaway Inc. has more than $20 billion invested in U.S. banks, said on May 5 the nation’s lenders have “liquidity coming out of their ears” and are in better shape than European rivals.

“I would put European banks and American banks in two very different categories,” Buffett, Berkshire’s chief executive officer, said at the firm’s annual meeting in Omaha, Nebraska.

“The American banking system is in fine shape. The European system was gasping for air a few months back” until getting assistance from the European Central Bank, he said.

Wall Street firms including JPMorgan and Bank of America, emboldened after raising capital levels ahead of stricter international guidelines, are contesting efforts by U.S. policy makers to limit trading and risk.

Banks had the biggest gain in the S&P 500 among 24 groups in regular trading today, adding 1.5 percent, as European lenders rallied. Federal Reserve Chairman Ben S. Bernanke said the U.S. banking system is stronger and more resilient while still facing challenges on credit quality and liquidity.

“Banks still have more to do to restore their health and adapt to the post-crisis regulatory and economic environment,” Bernanke said today in a speech at the Chicago Fed’s annual conference on banks.

The S&P 500 rebounded in regular trading, advancing 0.3 percent, as Greece attempted to form a new government and a decline in American jobless claims helped allay concern of a labor market setback.

Have a wonderful evening everyone.

Kindest Regards,

Ellora Howie

Assistant to Carolann Steinhoff

 

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Hello All,

Tangents:

As you might have noticed from today’s Google Doodle, today would have been famous Egyptologist Howard Carter’s 138 birthday. Carter is of course best known for discovering the tomb of  the boy king Tutankhamen in 1922.  King Tut’s tomb remains the most intact  pharaoh’s tomb ever to be found in modern archaeology. Years after, the New York Times had this to say of the historical find: “The splendor of the tomb and its rich furnishings within it revealed a Golden Age of arts and crafts equal to any other period of ancient times.”

After finding King Tut’s tomb, the high point of his career, Carter retired from archeology and worked as an agent for museums and collectors.

The discovery of King Tut’s tomb has also long been shrouded in mystery. After the excavation, several members of Carter’s team died, including his benefactor Lord Carnarvon. While this spooky coincidence may have perpetuated the myth of cursed tombs and mummies, a 2002 study found that their death rate was statistically normal.

Photos of the day May 9, 2012

 

A couple dances in Gorky Park in Moscow.- Denis Sinyakov/Reuters

Astana’s riders cycle to third place during the team time trial 33.2-km fourth stage of the Giro d’Italia in Verona, Italy.- Alessandro Garofalo/Reuters

Market Closes for May 9, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12835.06	-97.03
		-0.75%
S&P 500	1354.58	-9.14
		-0.67%
NASDAQ	2934.71	-11.56
		-0.39%
TSX	11675.01	-29.73
		-0.25%

International Markets

Market Index	Close	Change
NIKKEI	9045.06	-136.59
		-1.49%
HANG SENG	20330.64	-154.11
		0.75%
SENSEX	16479.58	-66.60
		-0.40%
FTSE 100	5530.05	-24.50
		-0.44%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.984	1.973
CND.   30 Year Bond	2.511	2.504
U.S.   10 Year Bond	1.8227	1.8402
U.S.   30 Year Bond	3.0249	3.0336

Currencies

BOC Close	Today	Previous
Canadian $	1.00247	1.00093
US $	0.99743	0.99907
Euro Rate 1 Euro=		Inverse
Canadian $	1.29652	0.77130
US $	1.29321	0.77327

Commodities

Gold	Close	Previous
London Gold Fix	1589.34	1605.00
Oil	Close	Previous
WTI Crude Future	96.81	97.01
BRENT	113.01	113.36

Market Commentary:

Canada

By Joseph Ciolli

May 9 (Bloomberg) — Canadian stocks fell for a sixth day after financials and energy producers declined amid concern Europe’s debt crisis may worsen, potentially curbing demand, following an inconclusive Greek election.

Royal Bank of Canada, the nation’s biggest lender, slipped 1.3 percent. Toronto-Dominion Bank, Canada’s second-largest lender, dropped 1 percent. Barrick Gold Corp., the world’s largest producer of the metal, increased 2.6 percent. Avion Gold Corp., which explores for the metal in Mali, plunged 31 percent after suspending a project in the country.

The Standard & Poor’s/TSX Composite Index fell 29.73 points, or 0.3 percent, to 11,675.01 in Toronto.

“Europe continues to dominate the headlines,” Brian Huen, a managing partner at Red Sky Capital Management Ltd. in Toronto, said in a telephone interview. The firm oversees about C$55 million ($55 million). “The question is whether the global growth forecasts that people have are in jeopardy again because of what’s going on there.”

Canadian stocks are extending their slump following a decline last week, when a U.S. industry report showed employers added fewer jobs than forecast last month and commodity prices dropped. Energy and mining shares account for 44 percent of Canadian stocks by market value, compared with 20 percent in the U.S.

Financial companies fell as Greece’s political impasse intensified concern that the European sovereign-debt crisis is worsening. Spanish default risk climbed to a record, while Alexis Tsipras of Greece’s Syriza party squared off with political leaders before talks on forming a coalition. Greece has 436 million euros (C$566 million) of debt coming due on May 15.

Royal Bank of Canada decreased 1.3 percent to C$53.37. Toronto-Dominion Bank slipped 1 percent to C$79.61. Bank of Nova Scotia, the country’s third-largest lender, fell 0.9 percent to C$52.56.

Materials companies gained today as gold rebounded from its lowest intraday level since Jan. 3. The metal reached $1,578.50 an ounce on the Comex in New York before recovering to settle at $1,594.20.

Barrick Gold increased 2.6 percent to C$37.65. Goldcorp Inc., the second-largest producer of the metal, climbed 3.5 percent to C$35.60. Eldorado Gold Corp., a Vancouver-based mining company, rose 2.1 percent to C$11.91.

Avion Gold plunged 31 percent to 59 Canadian cents after saying in a statement that it temporarily suspended its Tabakoto mill expansion project because of disruption associated with the military coup in Mali.

US

By Stephen Kirkland and Rita Nazareth

May 9 (Bloomberg) — Stocks fell, sending the Standard & Poor’s 500 Index to a two-month low, while the euro extended its longest slump since 2008 as Greece struggled to form a government and concern grew hat Spanish banks are underfunded.

The S&P 500 slipped 0.7 percent to 1,354.58 at 4 p.m. in New York, trimming an earlier tumble of as much as 1.5 percent as developments in Europe whipsawed markets. The euro depreciated 0.5 percent to $1.2940, weakening for an eighth day and reaching the lowest level since January. Spain’s benchmark IBEX 35 Index sank 2.8 percent to an eight-year low and costs to protect the nation’s government debt rose to a record. The S&P GSCI Index of 24 commodities lost 0.1 percent as wheat and corn led declines and oil fell for a sixth consecutive day.

Concern that Greece will be forced out of the euro zone grew after weekend elections resulted in a parliament divided over whether to implement austerity measures needed to qualify for rescue funds. The nation’s political turmoil was set to enter a fourth day with coalition talks deadlocked, raising the possibility that another election will have to be held.

“There’s something to worry about here,” said James Dunigan, who helps oversee $112 billion as chief investment officer in Philadelphia for PNC Wealth Management. “We expected there would be flare-ups again in Europe. People were scratching their heads why they didn’t show up a little sooner. Certainly as a result of the elections in Greece, the odds of a default and an exit from the euro have increased.”

U.S. equities extended losses earlier as the Wall Street Journal reported that European nations were debating whether to delay Greece’s next aid payment. Stocks trimmed declines as the European Financial Stability Facility’s Board of Directors confirmed the release of a 5.2 billion euro ($6.7 billion) tranche of aid to Greece, saying 4.2 billion euros will be disbursed May 10 and the remaining 1 billion euros will be released depending on the nation’s financing needs.

The S&P 500 extended its retreat from a four-year high last month to more than 4.5 percent. Gauges of industrial and financial shares fell more than 1 percent to lead declines among all of the 10 main industry groups in the index. United Technologies Corp., Boeing Co. and JPMorgan Chase & Co. lost at least 1.8 percent for the biggest declines in the Dow Jones Industrial Average, which fell for a sixth straight day in its longest slump since August.

Macy’s Inc., the owner of its namesake and Bloomingdale’s department stores, slid 3.7 percent after keeping its forecast for profit this year lower than analysts’ estimates.

Ten-year Treasury yields were little changed at 1.83 percent as the U.S. sold $24 billion of 10-year notes at a record low yield of 1.855 percent, lingering near the lowest level since January. Pacific Investment Management Co.’s Bill Gross and Jan Hatzius at Goldman Sachs Group Inc. say investors should prepare for additional bond purchases by the Federal Reserve to combat a slowing U.S. economy.

A decision to buy more debt is “getting closer,” Gross, who runs Pimco’s Total Return Fund, the world’s largest mutual fund, wrote on Twitter yesterday. Hatzius, the chief economist at New York-based Goldman Sachs, predicted in a report the same day that the Fed will announce additional monetary easing when it meets in June.

The Stoxx Europe 600 Index lost 0.3 percent after sliding as much as 1.4 percent. Banks fell 1.7 percent as a group for the biggest decline among 19 industries.

Spain’s IBEX led losses among European national benchmarks. The nation’s seven biggest banks need 68 billion euros of additional capital as a buffer against bad loans and to meet regulatory requirements, Royal Bank of Scotland analysts said. Bankia SA slumped 5.8 percent as JPMorgan Chase & Co. cut the shares to underweight, the equivalent of sell, and said the Spanish lender risks becoming a “zombie bank” that has to rely on the European Central Bank for funding.

Mediaset SpA sank 11 percent as the broadcaster controlled by former Italian Prime Minister Silvio Berlusconi said first- quarter profit dropped 85 percent on lower advertising sales. Bekaert NV, the world’s largest maker of steel cord for tires, surged 9.9 percent in Brussels after reporting sales that beat some analysts’ estimates.

The euro weakened 0.7 percent versus the yen, falling for the fourth straight day, as the shared European currency slid against 12 of 16 major peers. The Dollar Index, which tracks the U.S. currency against those of six trading partners, rose for the eighth day, the longest run of gains since September 2008.

The yen strengthened against all 16 major peers, gaining 0.2 percent to 79.68 per dollar. The Japanese currency will end the year at 83 versus the dollar, according to the median of 49 estimates compiled by Bloomberg. Toyota Motor Corp., which forecast profit will more than double in the year ending March 2013, is basing the outlook on an exchange rate of 80 yen to the dollar and 105 yen to the euro.

The yield on the Spanish 10-year bond climbed 23 basis points to 6.08 percent, driving its premium to benchmark German bunds to the highest since November. The yield on the German 10- year bund, Europe’s benchmark government debt security, slid to a record 1.497 percent as the nation sold 4.03 billion euros of five-year notes.

“Until it becomes clearer that an accident in Greece can again be avoided, risk appetite is unlikely to recover,” Christoph Rieger, head of interest-rate strategy at Commerzbank AG in Frankfurt, wrote in a note today.

Evangelos Venizelos, the socialist Pasok leader and former finance minister, said he’ll try to form a new Greek government when he receives a three-day mandate from President Karolos Papoulias tomorrow. Pasok today rejected terms for a government set by Alexis Tsipras of Greece’s anti-bailout Syriza party which then gave up its bid to build a coalition.

Fifteen of 24 commodities in the S&P GSCI Index retreated, led by declines of more than 2.4 percent in wheat and corn and losses of at least 0.6 percent in silver, gold, lead, nickel and zinc.

Oil in New York dropped 20 cents to $96.81 a barrel as U.S. Energy Department data showed stockpiles climbed 3.65 million barrels to 379.5 million, the most since August 1990. Inventories were forecast to advance 2 million barrels, according to the median of 12 analyst estimates in a Bloomberg survey. The six-day decline is the longest since July 2010.

The MSCI Asia Pacific Index sank 1.3 percent to the lowest level since Jan. 19, with Japan’s Nikkei 225 Stock Average retreating 1.5 percent. The MSCI Emerging Markets Index declined 1.5 percent to the lowest level in almost four months. Benchmark gauges in China and Indonesia lost more than 1 percent and South Korea’s Kospi Index slipped 0.9 percent.

Have a wonderful evening everyone.

Kindest Regards,

Ellora Howie

Assistant to Carolann Steinhoff

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

Hello All,

 

Tangents:

 

The phrase “This car practically drives itself!” has never been more apt. The Nevada Department of Motor Vehicles approved on Monday the nation’s first autonomous vehicle licence. While this might seem like an odd thing for the DMV to okay, Google has already developed its own self-driving car.

According to Google, the car navigates through video cameras, radar sensors, lasers and a database of information collected from manually driven cars. The modified Toyota Prius has already been spotted test driving officials on state highways, in Carson City neighbourhoods, and along the famous Las Vegas Strip.

You can read more about the “car of the future” here: http://life.nationalpost.com/2012/05/08/google-gets-first-self-driven-car-licence-in-nevada/

 

photos of the day

May 8, 2012

A man jumps into a pond from the top of a building to cool himself off on a hot afternoon in New Delhi.- Kevin Frayer/AP

A South Korean worker attaches a devotee’s name tag with their wishes on a lantern in preparation for the birthday celebration of Buddha, which falls on May 28, at Jogye temple in Seoul, South Korea. About one-third of South Korea’s 48 million people are Buddhists.- Lee Jin-man/AP

 

Market Closes for May 8, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12932.09	-76.44
		-.59%
S&P 500	1363.72	-5.86
		-.43%
NASDAQ	2946.27	-11.49
		-.39%
TSX	11704.74	-155.92
		-1.31%

International Markets

Market Index	Close	Change
NIKKEI	9181.65	+62.51
		+69%
HANG SENG	20484.75	-51.90
		-.25%
SENSEX	16912.71	+81.63
		+.49%
FTSE 100	5554.55	-100.51
		-1.78%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.973	2.020
CND. 30 Year Bond	2.504	2.542
U.S. 10 Year Bond	1.8402	1.8716
U.S. 30 Year Bond	3.0336	3.0598

Currencies

BOC Close	Today	Previous
Canadian $	1.00093	1.00717
US $	0.99907	0.99288
Euro Rate 1 Euro=		Inverse
Canadian $	1.29898	0.76992
US $	1.30019	0.76921

Commodities

Gold	Close	Previous
London Gold Fix	1605.00	1638.60
Oil	Close	Previous
WTI Crude Future	97.01	97.94
BRENT	113.36	113.61

 

Market Commentary:

Canada

By Joseph Ciolli

May 8 (Bloomberg) — Canadian stocks fell for a fifth day after material and energy producers declined as Greece’s political leaders struggled to form a government, fueling concern that austerity efforts in Europe will be derailed.

Goldcorp Inc., the world’s second-biggest producer of the metal, decreased 4.3 percent, while larger rival Barrick Gold Corp. lost 2.6 percent, as the U.S. dollar strengthened. Teck Resources Ltd., the country’s biggest base metals producer, sank 2.4 percent. Canadian Natural Resources Ltd., the country’s third-largest energy company, declined 3 percent.

The Standard & Poor’s/TSX Composite Index decreased 155.81 points, or 1.3 percent, to 11,704.85 in Toronto, its lowest closing level since Dec. 19.

“The uncertainty in Europe has reared its ugly head,” David Cockfield, a managing director at Northland Wealth Management in Toronto, said in a telephone interview. The firm oversees about C$200 million ($200 million). “It will continue to upset markets until we get a clearer picture of just what the European Union plans to do.”

Canadian stocks retreated last week after two straight weekly gains as Spain entered a recession, a U.S. industry report showed employers added fewer jobs than forecast last month and commodity prices dropped. Energy and mining shares account for 44 percent of Canadian stocks by market value, compared with 20 percent in the U.S.

Materials companies fell today with metals as gold tumbled below $1,600 an ounce for the first time since January after Alexis Tsipras, the head of the Greek Syriza party, received a mandate to form a government, boosting worries over austerity. Tsipras has said he will seek to form a coalition with other parties that favor reversing a 130 billion-euro bailout.

The U.S. dollar gained, lowering demand for gold as an alternative for investors and sending the S&P/TSX Gold Index to its lowest level since May 2009.

Barrick Gold lost 2.6 percent to C$36.71. Goldcorp decreased 4.3 percent to C$34.40. Eldorado Gold Corp., a Vancouver-based mining company, declined 8.5 percent to C$11.66.

Jaguar Mining Inc., which explores for gold in Brazil, plummeted 36 percent, the most since January 2003, to C$1.42 after saying China’s Shandong Gold Group Co. won’t proceed with a takeover of the company.

Copper fell the most in almost five weeks on concern over the elections in Greece and France. Teck Resources sank 2.4 percent to C$33.53. Ivanhoe Mines Ltd., Rio Tinto Group’s partner in the Oyu Tolgoi Mongolian gold and copper mine, dropped 4.4 percent to C$9.90.

Oil fell for a fifth day as Saudi Arabian Oil Minister Ali al-Naimi said prices are too high and the euro weakened against the dollar.

Canadian Natural Resources, the country’s third-biggest energy company, declined 3 percent to C$30.69. Suncor Energy Inc., Canada’s largest oil and gas producer, fell 1.5 percent to C$29.77. Nexen Inc. dropped 2.6 percent to C$16.82.

Avalon Rare Metals Inc., a company developing a rare-earth deposit in Canada’s Northwest Territory, plunged 23 percent to C$1.67, its lowest price since July 2009, after delaying the target date for its first production.

Second Wave Petroleum Inc., the Calgary-based oil and natural-gas producer that announced in February it was seeking a buyer, dropped 31 percent, its biggest drop since December 2006, to C$1.84 after ending the search without a satisfactory offer.

US

By Stephen Kirkland and Rita Nazareth

May 8 (Bloomberg) — Stocks and commodities slid, while the euro extended its longest slump since 2008, as concern that new Greek political leaders will back out of bailout agreements sent the nation’s benchmark equity index to an almost 20-year low.

The Standard & Poor’s 500 Index slipped 0.4 percent to close at 1,363.72 at 4 p.m. in New York. The index pared a loss of as much as 1.6 percent after holding for most of the day above 1,350, a technical level watched by traders. Greece’s ASE index plunged 3.6 percent to close at the lowest level since November 1992. Copper and oil lost at least 1 percent as the S&P GSCI Index of commodities wiped out most of its 2012 gain. The euro fell a seventh day, losing 0.3 percent to $1.3013. Ten-year Treasury yields fell to a three-month low.

Speculation that Greece’s new government will reject terms of its financial rescue grew as New Democracy leader Antonis Samaras said he failed to form a coalition following the weekend elections, passing the opportunity to Alexis Tsipras’s Syriza party. Tsipras said he plans to form a government of left-wing parties that would nationalize banks, repeal recent labor reforms and cancel the bailout accords.

“The situation in Europe could get worse before it gets better,” said James McDonald, chief investment strategist at Northern Trust Corp. in Chicago. His firm manages $715 billion.

“The concern is about the potential that Greece does not carry through on their agreements and they default and leave the euro. While investors have known Greece is going to be challenged to handle their debt load, it’s another thing to watch unfold.”

The S&P 500 dropped for the fourth time in five days, extending its retreat from a four-year high last month to 3.9 percent. Consumer-discretionary, financial and commodity companies led losses among eight of the 10 main industry groups today.

Hewlett-Packard Co. and Bank of America Corp. dropped more than 2 percent to lead the Dow Jones Industrial Average down 76.44 points to 12,932.09, paring losses after sliding as much as 198 points. The S&P 500 dipped below 1,350, a so-called support level being watched by traders, for only about 15 minutes this morning.

“We found support for the S&P 500 at 1,350 where you would have expected it to be,” said Michael Shaoul, chairman of Marketfield Asset Management in New York, which oversees more than $1.6 billion. “Once that held you’ve seen a willingness to buy the dip in the U.S. market in names that people have become comfortable with.”

McDonald’s Corp. retreated 2.1 percent after April sales trailed analysts’ projections. Electronic Arts Inc., the second- largest U.S. video-game publisher, declined 4.3 percent as its forecasts fell short of estimates. Fossil Inc., owner of the namesake watch brand, plunged 38 percent after the company reduced its full-year earnings forecast amid weakness in Europe.

The 10-year U.S. Treasury note yield fell for the third straight day, losing three basis points to 1.84 percent after dipping as low as 1.81 percent, the lowest level since February 3. The government sold $32 billion of three-year notes to day, the first of three sales this week totaling $72 billion.

Investors in Treasuries reduced bets the securities will advance and raised neutral positions to the highest in a month, according to a weekly survey by JPMorgan Chase & Co.

The proportion of “net longs” was cut to zero from six percentage points last week as the level of outright longs dropped to equal the level of outright shorts, which was unchanged at 17 percent. A long position is a bet that an asset will increase in value, while a short is a wager it will decrease.

The Stoxx Europe 600 Index slid 1.7 percent, erasing yesterday’s gain, as six shares fell for each that gained. Automakers, mining and financial-services companies led the retreat. National Bank of Greece tumbled 8.4 percent. Bankia SA slid 4.8 percent in Madrid as El Confidencial said the Spanish government will nationalize the lender. Royal KPN NV rallied 17 percent as America Movil SAB offered 2.6 billion euros ($3.4 billion) to increase its stake.

The euro fell 0.4 percent versus the yen. The Dollar Index, which tracks the U.S. currency against those of six trading partners, climbed 0.3 percent, advancing for the seventh consecutive day in its longest rally since 2010. The so-called Aussie weakened against 12 of its 16 major peers after the nation reported a larger-than-estimated trade deficit.

Greece will probably leave the euro as soon as next month as the government runs out of cash and European institutions fail to lend more to the nation, according to John Taylor of hedge fund FX Concepts LLC.

“This summer I think is very likely,” Taylor, founder and chief executive officer of FX Concepts in New York, said today in an interview on Bloomberg Television’s “Inside Track” with Erik Schatzker. “The Europeans aren’t going to give them the money, the International Monetary Fund’s not going to give them an OK. They will be out of money in June.”

Tsipras told his pro-bailout counterparts they must renounce support for the European Union-led rescue if there is to be any chance of forging a coalition. Tsipras said he expected Antonis Samaras of New Democracy and Evangelos Venizelos, the former finance minister who leads the Pasok party, to send a letter to the EU revoking pledges to implement austerity measures by the time he meets with them tomorrow. Samaras said he would not do so, and would support a minority government if necessary.

Greece’s Parliament is split down the middle on the bailout deals negotiated with the EU and IMF.

“We’ve de-stabilized Greece politically and now we’re all surprised they can’t take the decisions to do what we want them to do,” Carl Weinberg, chief economist at High Frequency Economics, told Bloomberg Television. “If Greece falls out of compliance with the IMF program and goes into a hard default, that will raise questions about the capital base of the ECB, put a burden on the other governments of Europe, and that will trigger a series of events that I think won’t have a very happy ending.”

Oil in New York declined 1 percent to $97.01 a barrel in New York, falling for a fifth day in its longest slump in three months, after Saudi Arabian Oil Minister Ali al-Naimi said prices are too high. Copper sank 2.5 percent to $3.6775 a pound as 17 of 24 commodities tracked by the S&P GSCI declined, sending the gauge down 0.6 percent and trimming its 2012 advance to 0.6 percent.

The MSCI Emerging Markets Index sank 1 percent as benchmark indexes in Mexico, India and Brazil lost at least 1.4 percent. The Hang Seng China Enterprises Index of Chinese stocks listed in Hong Kong slid 0.5 percent as residential land sales dropped 92 percent in major Chinese cities.

 

Have a wonderful evening everyone.

 

Kindest Regards,

 

Ellora Howie

Assistant to Carolann Steinhoff

 

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Tangents:

Would you set sail on a ship whose name and legacy is synonymous with tragedy and failure? Well an Australian billionaire is sure betting people will! Clive Palmer announced last Monday that he has signed a memorandum of understanding with state-owned Chinese company CSC Jinling Shipyard to build the Titanic II.

Mr. Palmer didn’t give any estimates about how much the project is going to cost, but he did state that “it will be every bit as luxurious as the original Titanic, but … will have state-of-the-art 21st-century technology and the latest navigation and safety systems.”

Titanic II’s maiden voyage is scheduled sometime in late 2016, so you too can set sail on “a tribute to the spirit of the men and women who worked on the original Titanic.”

However, I bet if you do end up going, there is going to be a huge lineup at the prow of the ship of people waiting to shout “I’m king of the world!” a la Jack and Rose from James Cameron’s 1997 film!

You can read more about it here: http://www.theglobeandmail.com/news/world/titanic-ii-australian-billionaire-says-replica-ship-will-set-sail-in-2016/article2417552/?utm_medium=Feeds%3A+RSS%2FAtom&utm_source=World&utm_content=2417552&fb_ref=homepage

photos of the day May 7, 2012

A full moon rises over the skyline of Lower Manhattan and One World Trade Center (l.) in New York.- Gary Hershorn/Reuters

A traditional dance group celebrates the Palm and Flowers Festival through the streets of Panchimalco, El Salvador.- Ulises Rodriguez/Reuters

Market Closes for May 7, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13008.53	-29.74
		-.23%
S&P 500	1369.58	+.48
		+.04%
NASDAQ	2957.76	+1.42
		+.05%
TSX	11860.66	-10.57
		-.09%

International Markets

MarketIndex	Close	Change
NIKKEI	9119.14	-261.11
		-2.78%
HANGSENG	20536.65	-549.35
		-2.61%
SENSEX	16912.71	+81.63
		+.49%
FTSE 100	5655.06	-111.49
		-1.93%

Bonds

Bonds	% Yield	Previous % Yield
CND.10 Year Bond	2.020	2.020
CND. 30 Year Bond	2.542	2.543
U.S. 10 Year Bond	1.8716	1.8786
U.S. 30 Year Bond	3.0598	3.0709

Currencies

BOC Close	Today	Previous
Canadian $	1.00717	1.00375
US $	0.99288	0.99626
Euro Rate 1 Euro=		Inverse
Canadian $	1.29655	0.77128
US $	1.30591	0.76575

Commodities

Gold	Close	Previous
London Gold Fix	1638.60	1642.23
Oil	Close	Previous
WTI Crude Future	97.94	98.49
BRENT	113.61	113.61

Market Commentary:

Canada

By Joseph Ciolli

May 7 (Bloomberg) — Canadian stocks fell for a fourth day as energy and materials shares dropped after European elections stoked speculation that austerity efforts will be derailed, escalating the debt crisis.

Oil and gas explorer Nexen Inc. declined 2.9 percent after saying it would abandon an unsuccessful deepwater well in the Gulf of Mexico. Penn West Petroleum Ltd. dropped 3.5 percent after reporting lower-than-forecast first-quarter sales.

Goldcorp Inc., the world’s second-biggest producer of the metal, declined 1.4 percent. Potash Corp. of Saskatchewan Inc., the biggest fertilizer company, fell 1 percent.

The Standard & Poor’s/TSX Composite Index decreased 10.57 points, or 0.1 percent, to 11,860.66 in Toronto.

“People are shocked about the election results, so confidence about trying to solve the debt crisis has fallen,” Sebastian van Berkom, a money manager at Van Berkom & Associates in Montreal, said in a telephone interview. The firm oversees about C$1.8 billion ($1.8 billion).

Canadian stocks retreated last week after two straight weekly gains as Spain entered a recession, a U.S. industry report showed employers added fewer jobs than forecast last month and commodity prices dropped. Energy and mining shares account for 44 percent of Canadian stocks by market value, compared with 20 percent in the U.S.

Energy companies declined as oil fell to a three month low after France elected Francois Hollande president and Greek voters picked anti-bailout parties. Hollande, who will become the first Socialist in 17 years to control Europe’s second- biggest economy, pledged to push for less austerity and more growth.

Nexen fell 2.9 percent to C$17.26. The energy producer with operations on five continents said it didn’t find hydrocarbons at the deepwater exploration well, which is being plugged and abandoned.

Penn West Petroleum, a western Canadian oil and gas company, dropped 3.5 percent to C$15.06 after reporting first- quarter sales of C$728 million, falling short of the average analyst estimate of C$841 million.

Africa Oil Corp. surged 35 percent to C$7.82, its highest price in more than 15 years. The Vancouver-based exploration company found additional oil in Kenya.

Materials stocks in the S&P/TSX decreased as gold futures dropped after election results in France and Greece eroded prospects for European debt reduction, curbing demand for the metal as an alternative for investors shifting out of the euro and into dollar assets perceived as safer.

Goldcorp declined 1.4 percent to C$35.93. Yamana Gold Inc., Canada’s third-largest company in the industry by market value, dropped 2.6 percent to C$13.73.

Potash Corp. fell 1 percent to C$41.89. Agrium Inc., a fertilizer producer and farm retailer, decreased 0.7 percent to C$84.25.

Molybdenum producer Thompson Creek Metals Co. plunged 16 percent, the most since November 2008, to C$4.61. The company said it intends to offer senior notes and tangible equity units, raising money to fund the construction of its Mt. Milligan copper-gold mine.

Contract driller Ensign Energy Services Inc. climbed 1.7 percent to C$13.90 after reporting first-quarter earnings excluding some items of 69 Canadian cents per share, exceeding the average analyst estimate of 54 Canadian cents.

US

By Michael P. Regan and Rita Nazareth

May 7 (Bloomberg) — Most U.S. stocks rose, led by banks, after billionaire investor Warren Buffett said American lenders are in “fine shape.” The euro slid for a sixth day and commodities fell after French Socialist Francois Hollande was elected president and Greek voters picked anti-bailout parties.

The Standard & Poor’s 500 Index added less than 0.1 percent to 1,369.58 at 4 p.m. in New York as six stocks gained for every five that fell on U.S. exchanges. The euro lost 0.3 percent to $1.3051 as the shared currency extended its longest losing streak since September. Ten-year French yields slipped three points to 2.80 percent and the CAC-40 Index of stocks rallied 1.7 percent. The S&P GSCI Index of commodities fell for a fourth day, declining 0.2 percent. Ten-year U.S. Treasury yields were little changed at 1.88 percent.

Financial shares rose 0.7 percent as a group to lead gains among the 10 main industries in the S&P 500 after Buffett said U.S. lenders have “liquidity coming out of their ears.”

Speculation that European austerity measures will be curbed grew after Hollande’s victory made him the first Socialist to take the helm of Europe’s second-biggest economy in 17 years. The Greek parliament will have three new anti-bailout parties represented.

“Every time Buffett gives the seal of approval, it helps certain stocks or segments of stocks,” Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland, said in a telephone interview. “As for Europe, we’ve priced in some of what’s happened. Yet investors are not really quite sure of what to make of those trends.”

U.S. stocks rebounded from early losses, including a 1.5 percent drop in S&P 500 futures before exchanges opened in New York. The S&P 500 halted a three-day slump. The index tumbled 2.4 percent last week, its biggest drop of the year, as data on American and European labor markets boosted concern the global economy is weakening. The benchmark gauge of U.S. stocks has retreated 3.5 percent from an almost four-year high on April 2.

Walt Disney Co. rallied 2.1 percent after “Marvel’s The Avengers” set box-office records with $200.3 million in ticket sales over the weekend. Fifth Third Bancorp and Bank of America Corp. rose almost 3 percent each, pacing gains in financial shares, after Buffett said U.S. lenders have “liquidity coming out of their ears.”

“I would put European banks and American banks in two very different categories,” Buffett, Berkshire Hathaway Inc.’s chairman and chief executive officer, said May 5 at the firm’s annual meeting in Omaha, Nebraska. “The American banking system is in fine shape. The European system was gasping for air a few months back” before getting assistance from the European Central Bank.

Hewlett-Packard Co. and Caterpillar Inc. lost more than 1.2 percent to lead the Dow Jones Industrial Average down 29.74 points to 13,008.53. The Dow and S&P 500 drifted between gains and losses for much for much of the day. American International Group Inc. dropped 3 percent as the U.S. Treasury Department agreed to sell $5 billion of shares, with the bailed-out insurer buying $2 billion of the total.

Risk perceptions among U.S. equity and credit investors are diverging by the most since 2009 as signs of an economic slowdown spur bigger increases in prices to protect against losses in bonds than stocks. The VIX, the benchmark gauge of U.S. equity derivatives that usually rises when shares fall, closed last week at 0.032 times the level of the Markit CDX North America High Yield Index, which increases when confidence in debt issuers deteriorates, according to data compiled by Bloomberg. That’s near the 2 1/2-year low of 0.027 times reached in March.

European stocks rose the most in more than a week as German Chancellor Angela Merkel said she will receive French president- elect Hollande with “open arms” as they work together to tackle the debt crisis. Hollande’s platform calls for policies Merkel opposes, including increased spending and a delayed deficit-reduction effort

The Stoxx Europe 600 Index reversed early losses to climb 0.7 percent, even as Greece’s ASE Index plunged 6.7 percent in its worst drop since November. National Bank of Greece SA tumbled 8.3 percent. Roche Holding AG fell 3.5 percent, the most since November, after abandoning development of an experimental cholesterol drug. CSM NV, the world’s biggest maker of bakery ingredients, jumped 19 percent after saying it will sell its U.S. and European bakery-supply units.

Benchmark stock indexes in Italy and Spain led gains, rallying more than 2.5 percent each. Among European bond markets, Italy’s 10-year yield lost three basis points to 5.40 percent and Spain’s increased two points to 5.76 percent.

The euro weakened against 14 of 16 major peers. The shared pared losses after dipping below $1.30 for the first time since April 16, and slid 0.5 percent versus the pound. The Dollar Index, which tracks the U.S. currency against those of six trading partners, advanced 0.1 percent, rising for a sixth day in the longest streak since September “Incumbents took a beating across Europe this weekend in what has been widely interpreted as a backlash against austerity,” Michala Marcussen, global head of economics at Societe Generale SA in Paris, wrote in a report today. “Failure to secure a political majority to meet the terms of the second Greek program could see the country inch towards euro exit. This would in our opinion be seen as a negative event, even beyond Greece’s borders.”

The euro is confounding bears who predicted a meltdown as it gets an unexpected boost from the economic and political turmoil gripping Europe. The 17-nation currency has risen about 1 percent against nine peers from this year’s low on Jan. 16, while the dollar slid 2.3 percent, data compiled by Bloomberg show. Futures traders are trimming bets that it will fall against the dollar, while options show investors are less bearish.

In other European elections, Merkel’s party had its worst election result in more than half a century in the state of Schleswig-Holstein. Austerity measures aimed at stemming Europe’s turmoil have driven economies from the Netherlands to Spain back into recession, emboldening politicians campaigning for growth.

A reduction in austerity could put more pressure on the European Central Bank to act, according to David R. Kotok, Cumberland Advisors’ chairman and chief investment officer.

“Political momentum moves toward more monetary ease,” Kotok wrote in a note to clients. “We expect some form of balance sheet expansion before the end of this year. We expect credit spreads of weaker sovereigns to widen until the ECB enters the market or discusses that it may do so.”

Cotton, silver and soybeans dropped at least 0.9 percent to lead the S&P GSCI index lower. Crude oil slipped 0.6 percent to $97.94 a barrel, the lowest settlement price in three months.

 

Have a wonderful evening everyone.

 

Kindest Regards,

 

Ellora Howie

Assistant to Carolann Steinhoff

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Dear Friends,

 

Tangents:

There is going to be a supermoon tomorrow night.  According to the G & M today, “A supermoon occurs when a full moon is also at it perigee, its closest point to Earth on its elliptical path.”  Tomorrow it will reach this perigee at 11:34 pm ET and will line up with the Earth and the sun to appear especially big and bright.  It should be pretty beautiful.

 

And on this day in,

1814 – Napoleon begins his exile on the island of Elba in the Mediterranean Sea

1930 – Mahatma Gandhi is arrested by the British

1942 – The United States begins food rationing

1943 – The Battle of the Coral Sea begins
1970 – Ohio National Guardsmen open fire on students at Kent State, killing 4 students and wounding 9 others
photos of the day

May 4, 2012

Mallory McCallen, from Houston, reads through a race program before the running of the first race before the 138th running of the Kentucky Oaks horse race at Churchill Downs in Louisville, Ky.

Charlie Riedel/AP

An Indian woman farmer collects beans from a vegetable field on the outskirts of Jammu, India.

Channi Anand/AP

Market Closes for May 4, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	13038.27	-168.32
		-1.27%
S&P 500	1369.10	-22.47
		-1.61%
NASDAQ	2956.34	-67.96
		-2.25%
TSX	11871.23	-143.67
		-1.20%

International Markets

Market  Index	Close	Change
NIKKEI	9380.25	+29.30
		+0.31%
HANG  SENG	21086.00	-163.53
		-0.77%
SENSEX	16831.08	-380.11
		-1.87%
FTSE 100	5655.06	-111.49
		-1.93%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.020	1.992
CND.   30 Year Bond	2.543	2.588
U.S.   10 Year Bond	1.8786	1.9224
U.S.   30 Year Bond	3.0709	3.1103

Currencies

BOC Close	Today	Previous
Canadian $	1.00375	1.01156
US   $	0.99626	0.98857
Euro Rate  1 Euro=		Inverse
Canadian   $	1.30363	0.76709
US  $	1.30852	0.76422

Commodities

Gold	Close	Previous
London Gold   Fix	1642.23	1636.07
Oil	Close	Previous
WTI Crude Future	98.49	102.54
BRENT	113.61	116.63

Market Commentary:

Canada

By Joseph Ciolli

May 4 (Bloomberg) — Canadian stocks fell, completing their biggest weekly decline this year, after U.S. employers added fewer jobs than forecast and energy shares declined with oil prices.

Suncor Energy Inc., Canada’s largest oil and gas producer, dropped 3.5 percent. Canadian Natural Resources Ltd., the country’s third-biggest energy company, sank 3.7 percent after its profit trailed estimates. Royal Bank of Canada, the nation’s biggest lender, decreased 1.6 percent. Goldcorp Inc., the world’s second-biggest producer of the metal, rose 1.3 percent as gold gained on speculation the Federal Reserve will add to stimulus measures to boost growth.

The Standard & Poor’s/TSX Composite Index decreased 143.67 points, or 1.2 percent, to 11,871.23 in Toronto. The index fell 3 percent over five days, its worst week since Dec. 16, and erased its gain for the year.

“The U.S. payroll numbers were a lot weaker than expected,” Anil Tahiliani, a money manager at McLean & Partners in Calgary, said in a telephone interview. The firm oversees about C$1 billion ($1 billion). “Uncertainty has come back on the table in terms of headline risk. The market has been looking for an excuse in the last day or two to take it lower.”

Canadian stocks retreated after two straight weekly gains as Spain entered a recession, a U.S. industry report showed employers added fewer jobs than forecast last month and commodity prices dropped. Energy and mining shares account for 44 percent of Canadian stocks by market value, compared with 20 percent in the U.S.

U.S. payrolls climbed 115,000 in April, the smallest gain in six months, the Labor Department reported today. The median estimate of 85 economists surveyed by Bloomberg News called for a 160,000 advance. The jobless rate fell to a three-year low of 8.1 percent.

Royal Bank of Canada decreased 1.6 percent to C$54.95.

Toronto-Dominion Bank, Canada’s second-largest lender, fell 0.7 percent to C$81.16. Bank of Nova Scotia, the country’s third- largest lender, dropped 1 percent to C$52.75.

Great-West Lifeco Inc., Canada’s second-biggest insurance company, fell 8.8 percent to C$22.19 after its first-quarter results fell short of analysts’ estimates and Bank of Montreal lowered its rating on the shares.

Energy stocks in the S&P/TSX declined as oil fell below $100 a barrel for the first time since February after the U.S. jobs report fanned concern that the economy of the world’s largest crude-consuming country may be losing speed.

Suncor Energy dropped 3.5 percent to C$30.17. Canadian Natural Resources sank 3.7 percent to C$31.71 after reporting first quarter adjusted profit that missed the average analyst estimate by 35 percent. Oil-sands producer Cenovus Energy Inc. declined 5.3 percent to C$32.15.

Materials companies fell as declining prices for copper and wheat outweighed an increase in gold.

Teck Resources Ltd., the country’s biggest base metals producer, dropped 1.6 percent to C$34.79. First Quantum Minerals Ltd., Canada’s second-largest publicly traded copper producer, slipped 4.3 percent to C$18.82. Potash Corp. of Saskatchewan Inc., the biggest fertilizer company, fell 0.8 percent to C$42.32.

Gold gained for the first time this week after U.S. jobs figures increased the metal’s appeal as a hedge in the event of additional stimulus measures.

Goldcorp rose 1.3 percent to C$36.43. Barrick Gold Corp., the world’s largest producer of the metal, gained 0.4 percent to C$37.66.

US

By Rita Nazareth

May 4 (Bloomberg) — U.S. stocks declined a third day, giving the Standard & Poor’s 500 Index its worst week in 2012, after data showing employers added fewer jobs than forecast intensified concern about the pace of economic recovery.

The S&P 500 retreated 1.6 percent to 1,368.88 at 4 p.m. New York time, according to preliminary closing data, extending its weekly decline to 2.5 percent.

“The data point to sluggish job growth, declining labor market participation and for those employed, stagnant purchasing power,” Mohamed El-Erian, the chief executive officer of Pacific Investment Management Co., said in an e-mail today.

“Consumption is less dynamic at a time when headwinds from Europe and a potential fiscal cliff are still material.”

Equities slumped as payrolls climbed 115,000, the smallest gain in six months and below the estimate for a 160,000 advance.

The jobless rate unexpectedly fell to a three-year low of 8.1 percent as people left the labor force. Concern about Europe’s debt crisis also helped send stocks slower as services and manufacturing output in the euro region shrank and France, Germany and Greece prepared for elections this weekend.

Some investors said economic concern adds to speculation the Federal Reserve will consider additional steps to boost growth. The Fed may announce a third-round of asset purchases, or quantitative easing, if economic data continues to disappoint, said Keith Wirtz, at Fifth Third Asset Management.

A negative reading in a measure of forecasting accuracy shows data have been worse than economists expected. The Citigroup Economic Surprise Index was at minus 23.40 today. The gauge a year ago plunged into negative figures ahead of an economic soft patch that prompted the Fed, in an initiative dubbed “Operation Twist,” to replace $400 billion of short- term debt in its portfolio with longer-dated securities.

“The labor report may be the first beat on the drum for QE3,” said Wirtz, who oversees $15 billion as chief investment officer for Fifth Third Asset Management in Cincinnati. “As we proceed into summer, watch the releases. Negative beats will lead to Fed actions before Labor Day — ironic by accident.”

Since reaching a 12-year low in March 2009, the S&P 500 has more than doubled amid government’s stimulus measures and as corporate profits beat estimates for the 13th straight quarter.

About 71 percent of S&P 500 companies that reported results since the start of the earnings season have topped projections, according to data compiled by Bloomberg.

 

Have a wonderful evening everyone.

 

Be magnificent!

It is not a question of belief.

Stop believing in that which is;

this is what is taught in jnâna yoga.

Believe in no other,

stop believing in that which is;

this is the first stage.  Dare to be rational.

Dare to follow reason where it may take you.

-Swami Vivekananda, 1863-1902

As ever,

 

Carolann

 

Winners never quit and quitters never win.

-Vince Lombardi, 1913-1970

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

 

Tangents:

Received this news alert from The Wall Street Journal earlier today:

By Kelly Crow

Let the art market roar. Norwegian painter Edvard Munch became the most expensive artist at auction Wednesday when his 1895 pastel of a terrified man clutching his cheeks along an Oslo fjord, “The Scream,” sold for $119.9 million at Sotheby’s—the most ever paid for a work of art at auction.

The purchase surpasses the $106.5 million spent two years ago for Pablo Picasso’s 1932 portrait of his mistress, “Nude, Green Leaves and Bust,” as well as Alberto Giacometti’s earlier record of $104.3 million for his 1960 spindly bronze sculpture, “Walking Man I.”

Edvard Munch, ‘The Scream,’ 1895

In a dogged contest at the auction house’s New York saleroom, the bidding for Munch’s “Scream” began at $40 million and shot up quickly, with five bidders from the U.S. and China competing for the sunset-colored portrait. Charlie Moffett, a Sotheby’s specialist who represents American buyers, fielded the anonymous winning bid by phone.

The record-setting Munch was considered a plum as much for its rarity as for its pop-culture ubiquity. One of four versions of “The Scream” that Munch created, this version was the only one not in an Oslo museum and the first to ever come up at auction. The image has also been reproduced on everything from ice-cream containers to the villain’s mask in Wes Craven’s “Scream” horror films.

The work had been priced to sell for about $80 million. Sale prices, unlike estimates, include the auction house’s commission, which is 25% on the first $50,000, 20% up to $1 million and 12% above $1 million.

The sale reflects the trophy-hunting atmosphere buoying the global art market, as billionaires around the world vie for the few masterpieces that come up for sale in any given season. Bragging rights are at stake, but their collective bidding has also helped recalibrate price levels for dozens of top artists.

The Many Faces of Munch’s “The Scream”

The Simpsons TM and 2012 Twentieth Century Fox Film Corporation.

“The Scream” has inspired many pop-culture mash-ups. Here, Homer Simpson swirls with existential dread.

Outside the auction houses, artworks have already traded for even more: Five years ago, Chicago collector Stefan Edlis sold Andy Warho piecel “Turquoise Marilyn” to hedge-fund billionaire Steven Cohen for at least $80 million. Dealers say Greek shipping magnate George Embiricos sold his Paul Cezanne painting, “Card Players,” to an anonymous buyer last year for at least $250 million. Details of that $250 million sale remain cloudy in part because Mr. Embiricos died last fall, and no buyer for his record-setting painting has since stepped forward. Dealers say the likely buyers include Qatar’s royal family, which declined to comment, and billionaires from Greece and Russia.

“There’s a lot of money out there now, and it doesn’t take many billionaires to push up a price,” said Mr. Edlis, the Chicago collector, before the sale. “You can only buy so many yachts, and a painting is so much better to look at than a bankbook.” Mr. Edlis said he didn’t plan to enter the fray on the Munch.

Elsewhere in Sotheby’s sale, collectors also chased after a group of works coming from the estate of financier Theodore Forstmann, a pioneer in the leveraged-buyout business. Mr. Forstmann was the senior founding partner of the investment firm Forstmann Little & Co., and chairman and CEO of IMG Worldwide Holdings, Inc.

Ellen Gamerman/The Wall Street Journal:

Leading this group of colorful, modern paintings and bronze sculptures was Picasso’s $29.2 million “Woman Sitting in a Chair” from 1941, and Chaim Soutine’s $9.3 million “The Hunter of Maxim’s” from 1925.

“The Scream” carries its own mystique, having come from the collection of Petter Olsen, a Norwegian real-estate developer and shipping heir who grew up with the work in the living room of his childhood home. His father, Thomas Olsen, a neighbor of Munch’s in the small Norwegian town of Hvitsten, bought the work from the German coffee magnate who likely commissioned it. During World War II, Mr. Olsen said his family hid the work along with dozens of other Munch artworks in a hay barn to protect them from the Nazis, who were destroying artworks they deemed degenerate. Mr. Olsen has said he offered up “The Scream” now in order to fund a museum of Munch’s work in Hvitsten to open next year.

The work itself depicts a bald, skeletal figure in a blue shirt standing at a popular suicide spot on Oslo’s horseshoe-shaped bay where people could often hear screams from a nearby insane asylum, according to art historians. Munch’s sister, who had been diagnosed with schizophrenia, was housed in that asylum. (There’s still debate over whether Munch’s character is actually screaming or using his hands to muffle the sound of surrounding screams.)

The third in a series created between 1893 and 1910, Sotheby’s version was created with pastel on rough board and offered in its original frame, which is inscribed with an 1892 poem Munch wrote that inspired the work. In the poem, he says he was walking beside that fjord when he sensed “an infinite scream passing through nature.”

Historians hail Munch for breaking away from the Impressionists who still held sway over the art world in the late 19th century. Instead of playing with light and shadow to capture the world around him, Munch experimented with ways to visualize his own tormented emotions—a shift that helped pave the way for the Expressionists like Egon Schiele along with later Abstract Expressionists like Mark Rothko.

 

And, on this day in,

1670 – The Hudson’s Bay Company is founded
1946 – Prisoners revolt at California’s Alcatraz prison
1919 – The first U.S. air passenger service begins
1933 – Loch Ness Monster sighted

2011- Osama bin Laden killed during a raid on his compound in Abbottabad

 

You were born an original … Don’t die a copy. –John Mason

 

photos of the day

May 2, 2012

In this photo taken by Canadian Peter Mark in the end of April, 2012 and released today, a motorbike lies on a beach in Graham Island, western Canada. Japanese media say the motorcycle, lost in last year’s tsunami, washed up about 4,000 miles away in Canada. The owner, Yokoyama, was located through the license plate number, Fuji TV reported.

Peter Mark/Kyodo News

Mallard ducklings follow their mother into the grass on the south side of Nebraska Hwy. 2 near 13th Street in Lincoln, Neb.

Francis Gardler/The Journal-Star/AP

Market Closes for May 2, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	13268.57	-10.75
		-0.08%
S&P 500	1402.31	-3.51
		-0.25%
NASDAQ	3059.85	+9.41
		+0.31%
TSX	12230.12	-102.67
		-0.83%

International Markets

Market  Index	Close	Change
NIKKEI	9380.25	+29.30
		+0.31%
HANG  SENG	21309.08	+214.87
		+1.02%
SENSEX	17301.91	-16.90
		-0.10%
FTSE 100	5758.11	-54.12
		-0.93%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.018	2.045
CND.   30 Year Bond	2.594	2.612
U.S.   10 Year Bond	1.9277	1.9435
U.S.   30 Year Bond	3.1159	3.1468

Currencies

BOC Close	Today	Previous
Canadian $	1.01341	1.01440
US   $	0.98677	0.98580
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29757	0.77067
US  $	1.31498	0.76047

Commodities

Gold	Close	Previous
London Gold   Fix	1653.32	1661.95
Oil	Close	Previous
WTI Crude Future	105.22	106.21
BRENT	118.61	120.00

Market Commentary:

Canada

By Joseph Ciolli

May 2 (Bloomberg) — Canadian stocks fell, snapping a five- day rally, after a U.S. industry report showed employers added fewer jobs than forecast last month and commodity prices dropped.

Canadian Natural Resources Ltd., the country’s third- largest energy company, declined 2.3 percent as oil dropped from a five-week high. Enbridge Inc., the nation’s largest pipeline company, dropped 0.9 percent. Barrick Gold Corp. decreased 2.7 percent as gold prices fell and the company reported results that matched analyst estimates. Copper producer First Quantum Minerals Ltd. lost 2.3 percent on declining prices for the metal.

The Standard & Poor’s/TSX Composite Index decreased 102.67 points, or 0.8 percent, to 12,230.12 in Toronto.

“The key thing today is that gold and oil are down,” Irwin Michael, a portfolio manager at ABC Funds in Toronto, said in a telephone interview. Michael’s firm oversees C$1 billion ($1 billion). “It’s a bit of a knee-jerk reaction to the last week or so of good, solid gains in the marketplace.”

The benchmark gauge had its second straight weekly gain in the period ending April 27, marking the first time since February that the index increased in consecutive weeks. Canadian stocks rose on better-than-forecast corporate earnings and U.S. housing data that exceeded expectations. Energy and raw material stocks account for 44 percent of Canadian stocks by value.

Energy companies fell as crude oil futures extended declines after the U.S. Energy Department said stockpiles rose to the highest level in 21 years. Supplies increased 2.84 million barrels to 375.9 million, the department said today.

Canadian Natural Resources declined 2.3 percent to C$33.91.

Enbridge dropped 0.9 percent to C$40.94. Oil-sands producer Cenovus Energy Inc. fell 4.3 percent to C$34.61.

Materials stocks in the S&P/TSX declined as metal prices fell. Gold dropped the most in a week after three voting members of the  U.S. Federal Open Market Committee said they don’t see a need for more economic stimulus and the Bombay Bullion Association said imports of the metal fell by as much as a two- thirds in April from a year earlier in India, the biggest importer.

Barrick Gold, the world’s largest producer of the metal, fell 2.7 percent to C$38.80 after reporting earnings excluding some items of C$1.09 a share, matching the average analyst estimate. Goldcorp Inc., the world’s second-biggest bullion producer, decreased 1.4 percent C$37.54.

Copper dropped for the first time in more than a week as Europe’s slowing industrial output and rising unemployment signaled a worsening economic slump that may crimp demand.

First Quantum Minerals, Canada’s second-largest publicly traded copper producer, decreased 2.3 percent to C$20.01. Teck Resources Ltd., the country’s biggest base metals producer, slipped 2.2 percent to C$36.39.

Financial shares declined as ADP Employer Services said companies added the fewest U.S. workers in seven months in April.

Royal Bank of Canada, the country’s biggest lender, dropped 0.9 percent to C$56.36. Toronto-Dominion Bank, Canada’s second- largest lender, fell 0.5 percent to C$82.59.

US

By Rita Nazareth

May 2 (Bloomberg) — U.S. stocks fell, dragging the Dow Jones Industrial Average down from the highest level since 2007, as data showed companies added fewer jobs than economists projected and euro-region unemployment rose to a 15-year high.

Energy and financial shares dropped the most among 10 groups in the Standard & Poor’s 500 Index. Chesapeake Energy Corp. tumbled 15 percent after reporting an unexpected loss and saying it may run out of money next year under the weight of the lowest natural-gas prices in a decade. Bank of America Corp.

retreated 1.8 percent. Stocks pared their slump as a gauge of homebuilders in S&P indexes advanced to the highest since 2008.

The S&P 500 slid 0.3 percent to 1,402.31 at 4 p.m. New York time, after falling 0.9 percent earlier today. The Dow dropped

10.75 points, or 0.1 percent, to 13,268.57. The Nasdaq Composite Index increased 0.3 percent to 3,059.85 as Apple Inc. shares rebounded. About 6.6 billion shares changed hands on U.S. exchanges, or 1.4 percent below the three-month average.

“The labor market is weak at best,” said Keith Wirtz, who oversees $15 billion as chief investment officer for Fifth Third Asset Management in Cincinnati. “While we thought that we were gaining some momentum, more recent data suggest that things are sluggish. If we start to see a cascade of negative news, the market is going to be vulnerable.”

Equities fell as American companies added 119,000 workers in April, the fewest in seven months, according to a private report. Concern about Europe’s economy also helped drive stocks lower today. The jobless rate in the euro area rose to 10.9 percent in March, manufacturing contracted last month and unemployment in Germany unexpectedly increased.

The decline in stocks came after the S&P 500 rose to the highest level in almost a month yesterday. Today’s payroll survey intensified concern that Labor Department data in two days may show the U.S. isn’t growing fast enough to reduce unemployment. An index of forecasting accuracy shows data have been worse than economists predicted. The Citigroup Economic Surprise Index is at minus 20.40, the lowest since October.

“I’ve got a feeling that we might see a downside surprise on the monthly jobs report,” Randy Frederick, managing director of active trading and derivatives at Charles Schwab Corp., said from Austin, Texas. His firm has $1.83 trillion in client assets. “Given how high the market is right now and this softening in economic data, it’s very likely to see a pullback in the range of 5 percent to 10 percent.”

Investors bought stocks this year on better-than-estimated earnings, sending the S&P 500 up 12 percent. About 73 percent of S&P 500 companies that reported results since April 10 have beaten projections, according to data compiled by Bloomberg.

Six out of 10 groups in the S&P 500 retreated as energy shares slumped 1.6 percent. Oil dropped from a five-week high after the U.S. Energy Department said stockpiles rose to the highest level in 21 years. Byron Wien, the 79 year-old chairman of Blackstone Group LP’s advisory services unit, is forecasting an annual drop in oil prices for the first time in his career as swelling production pushes global inventories higher.

Chesapeake tumbled 15 percent, the most since 2008, to $16.74. The company slashed its full-year 2012 and 2013 operating cash flow estimates by as much as 48 percent, and increased the amount of assets it plans to sell. This year’s cash flow estimate was lowered to $2.7 billion to $3 billion, from a February forecast of $4.5 billion to $5.2 billion.

The shares surged 6.3 percent yesterday amid plans to strip Chief Executive Officer Aubrey McClendon of the chairman’s job and end an executive perk that allowed him to buy personal stakes in every well the company drilled.

“I’m deeply sorry for all of the distractions of the past two weeks,” McClendon, co-founder of Oklahoma City-based Chesapeake, said on a conference call to discuss first-quarter results today. McClendon said the company may have to sell more assets than planned to cover a gap between cash flow and revenue if natural-gas prices remain depressed.

The KBW Bank Index dropped 0.9 percent as 18 of its 24 stocks retreated. Bank of America declined 1.8 percent to $8.16.

Citigroup Inc. slipped 2.7 percent to $32.70.

Bankrate Inc. plunged 15 percent, the most since it went public in June, to $20.19. The online publisher of personal finance information reported first-quarter earnings and revenue that fell short of estimates.

OpenTable Inc. sank 15 percent, the biggest decline since going public in 2009, to $37.13. The online restaurant- reservation service forecast revenue in 2012 of no more than $164 million, compared with the average analyst estimate of $168.5 million.

Stocks pared losses as a gauge of homebuilders in S&P indexes rose 2.5 percent. Lennar Corp. gained 2.7 percent to $29.02. D.R. Horton Inc. added 3.4 percent to $17.22.

An International Strategy & Investment survey released yesterday showed sales by homebuilders climbed to a six-year high. The Los Angeles Times reported that the Federal Housing Finance Agency is under pressure to allow Fannie Mae and Freddie Mac to reduce loan principal amounts for struggling borrowers.

A rebound in Apple, the world’s most valuable company, also helped trim some of the earlier slump in equities. Apple rose 0.7 percent to $585.98, after dropping for four straight days.

CVS Caremark Corp. rose 2.7 percent to $45.92. The largest provider of prescription drugs in the U.S. reported first- quarter profit that exceeded analysts’ estimates after grabbing customers from Walgreen Co.

Con-way Inc. advanced 13 percent to $37. The U.S. trucking company said it earned 45 cents a share excluding some items in the first quarter. Analysts, on average, estimated 34 cents, according to a Bloomberg survey.

Nike Inc., the world’s largest sporting-goods company, surged to an all-time high today. The shares added 2.7 percent to $114.28, extending this year’s rally to 19 percent.

TripAdvisor Inc. surged 17 percent to $42.63 for the biggest gain in the S&P 500. The online travel-recommendation service spun off from Expedia Inc. reported first-quarter profit and sales that topped some analysts’ estimates.

Financial shares are sending a signal that stock investors may be better off without a “sell in May” strategy this year, said Ari H. Wald, a Brown Brothers Harriman & Co. analyst.

The S&P 500’s financial stocks are beating the benchmark this year after lagging behind in 2011. The group’s weakness last year preceded five straight months of declines, from May through September, for the S&P 500.

Banks, insurers and other financial companies posted the year’s biggest gain among the S&P 500’s 10 main industry groups through yesterday. Their industry index rose 20 percent, just beating a 19 percent advance in a gauge of technology stocks.

Another favorable sign is that computer-related companies and other groups sensitive to economic swings are market leaders this year, Wald wrote yesterday in a report. Industries less affected by the economy’s performance were top performers through the first four months of last year.

There are indicators of weakness as well, he wrote. The number of 52-week highs in U.S. stocks after subtracting lows is shrinking, investor concern about a market slump has faded, yields on Treasury debt are low by historical standards, and commodity prices have fallen in the past two months.

The slump in these and other market barometers “has not progressed to the point that they support a bearish outlook as they did in May 2011,” Wald wrote. Instead, they point toward a “lack of full confirmation in either direction,” according to the New York-based analyst.

 

Have a wonderful evening everyone.

 

Be magnificent!

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

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

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

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

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

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

Do not believe in that which comes to your imagination,

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

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

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

and which will be beneficial to you and to others;

believe that, and shape your conduct to it.

-Buddha

As ever,

 

Carolann

 

Follow your desire as long as you live.

-Ptah-hotep, 25^th-24^th centuries B.C.

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

 

 

Dear Friends,

 

Tangents:

 

May Day today:

Polydor Virgil says that the Roman youths used to go into the fields and spend the calends of May in dancing and singing in honor of Flora, goddess of fruits and flowers.  The English celebrated May Day with games and sports, particularly archers and Morris Dances and the setting up of the Maypole.  In due time Robin Hood and Maid Marian came to preside as Lord and Lady of the May, and by the 16^th century May Day was Robin Hood’s day and Robin Hood plays became an integral part of the festivities. – from Brewar’s Dictionary f Phrase & Fable.

 

On this day in,

1961 – Fidel Castro announces there will no longer be elections in Cuba
1931 – The Empire State Building opens in New York City
1948 – North Korea is established
1970 – Kent State University riot in protest of U.S. invasion of Cambodia

Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned. ~ Buddha
photos of the day

May 1, 2012

Marie Wieland tries to climb up a maypole during the traditional May Day celebrations in Lofer in the Austrian province of Salzburg.

Kerstin Joensson/AP

Swans glide through the flooded riverside walkways in the shadow of the cathedral in Worcester, England. Heavy rain lashed southern Britain overnight following the wettest April since records began.

David Jones/PA/AP

 

Market Closes for May 1, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	13279.32	+65.69
		+0.50%
S&P 500	1405.82	+7.91
		+0.57%
NASDAQ	3050.44	+4.08
		+0.13%
TSX	12328.88	+35.53
		+0.29%

International Markets

Market  Index	Close	Change
NIKKEI	9350.95	-169.94
		-1.78%
HANG  SENG	21094.21	+352.76
		+1.70%
SENSEX	17318.81	+131.47
		+0.76%
FTSE 100	5812.23	+74.45
		+1.30%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.045	2.037
CND.   30 Year Bond	2.612	2.608
U.S.   10 Year Bond	1.9435	1.9137
U.S.   30 Year Bond	3.1468	3.1111

Currencies

BOC Close	Today	Previous
Canadian $	1.01440	1.01245
US   $	0.98580	0.98761
Euro Rate  1 Euro=		Inverse
Canadian   $	1.30489	0.76635
US  $	1.32367	0.75548

Commodities

Gold	Close	Previous
London Gold   Fix	1661.95	1665.50
Oil	Close	Previous
WTI Crude Future	106.21	104.93
BRENT	120.00	120.27

Market Commentary:

Canada

By Joseph Ciolli

May 1 (Bloomberg) — Canadian stocks rose, driving the Standard & Poor’s/TSX Composite Index toward the longest winning streak since January, as energy shares increased with oil prices after a stronger-than-forecast U.S. manufacturing report.

Cameco Corp. the world’s largest uranium producer, gained 4 percent after reporting first-quarter profit that topped analysts’ estimates as sales of the nuclear-reactor fuel rose.

Suncor Energy Inc. increased 1.7 percent. Encana Corp., the country’s biggest natural gas producer by volume, increased 3.4 percent, as gas prices rose for a third day.

The S&P/TSX gained 60.06 points, or 0.5 percent, to 12,352.75 at 2:45 p.m. in Toronto, rallying for a fifth-straight day.

“Oil is particularly strong today,” David Cockfield, a managing director at Northland Wealth Management in Toronto, said in a telephone interview. The firm oversees about C$200 million ($200 million). “Things have quieted down in Europe to a degree. Investors are back in picking away at individual situations.”

The benchmark gauge had its second straight weekly gain in the period ending April 27, marking the first time since February that the index increased in consecutive weeks. Canadian stocks rose on better-than-forecast corporate earnings and U.S. housing data that exceeded expectations. Energy and raw material stocks account for 44 percent of Canadian stocks by value.

Energy companies increased as oil climbed to a one-month high after U.S. manufacturing increased at the fastest pace in 10 months, signaling that economic growth will accelerate in the world’s biggest crude-consuming country. Natural gas climbed on forecasts of below-normal temperatures that may increase heating fuel demand.

Suncor rose 1.7 percent to C$33.19. Encana increased 3.4 percent to C$21.39. Oil-sands company Cenovus Energy Inc. gained 1.2 percent to C$36.28.

Materials stocks in the S&P/TSX increased as copper prices rose after reports on U.S. manufacturing and automobile sales last month brightened prospects for demand. Teck Resources Ltd., the country’s biggest base metals producer, climbed 1.3 percent to C$37.34. Lundin Mining Corp. rallied 3.5 percent to C$4.97.

Cameco surged 4 percent to C$22.73 after saying in a statement today that net income increased to C$132 million, or 33 cents a share, from C$91 million, or 23 cents, a year earlier. Excluding a loss from contracts used to lock-in commodity prices, per-share profit was 31 cents, topping the 25- cent average of 10 estimates compiled by Bloomberg.

TMX Group Inc., the exchange owner facing a C$3.73 billion takeover by a group of Canadian banks and pension funds, rose 2.6 percent to C$46.25 after the offer was extended pending regulatory approval. The shares climbed to C$46.44 intraday, the highest price since May 2008, approaching the C$50-a-share bid by Maple Group Acquisition Corp.

US

By Rita Nazareth

May 1 (Bloomberg) — U.S. stocks advanced, sending the Dow Jones Industrial Average to the highest level since December 2007, after a better-than-estimated manufacturing report bolstered investors’ optimism in the world’s largest economy.

The Standard & Poor’s 500 Index advanced 0.6 percent to 1,405.91 at 4 p.m. New York time, the highest since April 3. The index trimmed an earlier rally of as much as 1.3 percent. The Dow added 67.36 points, or 0.5 percent, to 13,280.99.

“The economy is starting to get on its own two feet,” said Wayne Lin, a money manager at Baltimore-based Legg Mason Inc. His firm oversees $643.3 billion. “Manufacturing is forward-looking. It leads what the actual economic activity tends to end up being. It tells us that firms are being a bit less conservative. Confidence is starting to reemerge.”

Stocks rallied as manufacturing unexpectedly expanded in April at the fastest pace in 10 months. The report added to optimism after data showed growth in Chinese manufacturing.

Investors also watched corporate earnings as about 74 percent of S&P 500 companies that reported results since April 10 have beaten projections, according to data compiled by Bloomberg.

Today’s gain extended this year’s advance in the S&P 500 to 12 percent. The index still trades at 14.3 times reported earnings, below the average since 1954 of 16.4. Former Federal Reserve Chairman Alan Greenspan said U.S. stocks offer good value and are likely to rise as earnings increase over time.

“Stocks are very cheap,” Greenspan, who served as Fed chairman from August 1987 to January 2006, said today at the Bloomberg Washington Summit hosted by Bloomberg Link. “There is no place for earnings to grow except into stock prices.”

Equities rebounded after the S&P 500 halted a four-month gain in April. Yet a rally of more than 10 percent in the first four months of the year has been a harbinger of gains in May, said Bespoke Investment Group. In the 19 times since 1927 that the S&P 500 has had such a start to the year, it has followed with an average gain of 2.2 percent in May, Bespoke data show.

The benchmark gauge has more than doubled since reaching a 12-year low on March 2009 amid government stimulus measures.

Better-than-estimated earnings and economic data show the Fed doesn’t need to add monetary stimulus right now, according to Kevin Rendino, a money manager at New York-based BlackRock Inc.

“We don’t need QE3 right now,” said Rendino, referring to a so-called third round of quantitative easing, or asset purchases to stimulate the economy. His firm oversees $3.68 trillion as the world’s largest asset manager. “We need to have an economy that can stand on its own.”

Stock market trend charts and investor sentiment are signaling the S&P 500 may surpass its 2012 high before the rally gives way to a 10 percent decline, according to UBS AG.

The benchmark gauge for U.S. equities is likely to exceed this year’s peak of 1,419.04 and climb to 1,460, after it held last month above its March 6 low, said Michael Riesner and Marc Mueller, Zurich-based analysts with UBS. The S&P 500 halted a five-day slump on April 10 at 1,358.59. Two weeks later, it rebounded from another drop at 1,358.79.

The level of 1,358 “represents a new pivotal support for the SPX,” the analysts wrote in a note yesterday, referring to the S&P 500’s ticker. “As long as the market trades above this level, the U.S. market remains bullish biased,” they said.

 

Have a wonderful evening everyone.

 

Be magnificent!

Adaptability is not imitation.

It means power of resistance and assimilation.

-Mahatma Gandhi,1869-1948

As ever,

 

Carolann

 

The first step in the journey is to

lose your way.

-Galway Kinnell, 1927-

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

 

 

Dear Friends,

 

Tangents:

 

Today is Beltane Day.  Beltane is the ancient Celtic festival, union of goddess and god, water and light.  All fires are extinguished at sunset on Beltane Eve, the midpoint between the spring equinox and the summer solstice.  In the blackness of night, bonfires were lit on the hill tops and cattle were driven between the flames.  At dawn, the sun dances; at the height of spring, Beltane begins, celebrating all that is powerful and sensual in nature.  The ancient Celts saw joy and life as one with suffering, death and rebirth.

 

On this day in,
1987 – The Meech Lake Accord reached between PM Brian Mulroney and 10 Premiers,
recognizing Québec as a distinct society –
1945 – Adolf Hitler commits suicide in his bunker. Karl Donitz becomes his successor.
1931 – George Washington Bridge opens, linking New York City and New Jersey
1972 – The North Vietnamese launch an invasion of the South
1975 – Fall of Saigon Ends the Vietnam War
1980 – Terrorists seize the Iranian Embassy in London

 

photos of the day

April 30, 2012

People walk on the ‘OCBC Skyway’ linking the Supertrees, ranging from 25-50 meters in height and serving as vertical gardens, in the nearly completed Gardens By The Bay just next to Singapore’s busy financial district. It is part of the city-state’s efforts to make the city ‘green’ and promote Singapore as a tropical city.

Wong Maye-E/AP

Viewed from Jersey City, N.J., two birds fly by as the sun rises over buildings in New York, including One World Trade Center, tallest building at left. One World Trade Center, the giant monolith being built to replace the twin towers destroyed in the Sept. 11 attacks, will lay claim to the title of New York City’s tallest skyscraper.

Julio Cortez/AP

Market Closes for April 30, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	13213.63	-14.68
		-0.11%
S&P 500	1397.91	-5.45
		-0.39%
NASDAQ	3046.36	-22.84
		-0.74%
TSX	12292.69	+54.94
		+0.45%

International Markets

Market  Index	Close	Change
NIKKEI	9520.89	-40.94
		-0.43%
HANG  SENG	21094.21	+352.76
		+1.70%
SENSEX	17318.81	+131.47
		+0.76%
FTSE 100	5737.78	-39.33
		-0.68%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.037	2.088
CND.   30 Year Bond	2.608	2.634
U.S.   10 Year Bond	1.9137	1.9348
U.S.   30 Year Bond	3.1111	3.1200

Currencies

BOC Close	Today	Previous
Canadian $	1.01245	1.01999
US   $	0.98761	0.98040
Euro Rate  1 Euro=		Inverse
Canadian   $	1.30768	0.76471
US  $	1.32408	0.75524

Commodities

Gold	Close	Previous
London Gold   Fix	1665.50	1662.98
Oil	Close	Previous
WTI Crude Future	104.93	104.87
BRENT	120.27	120.47

Market Commentary:

Canada

By Joseph Ciolli

April 30 (Bloomberg) — Canadian stocks rose for a fourth day as energy shares increased after Energy Transfer Partners LP’s deal to buy Sunoco Inc. spurred merger speculation in the industry.

Suncor Energy Inc. rose 3.1 percent and Canadian Natural Resources Ltd. increased 2.4 percent after Energy Transfer agreed to pay $5.3 billion to expand its ability to ship higher- margin oil and natural gas liquids. Goldcorp Inc. and New Gold Inc. decreased 1.4 percent and 8.4 percent, respectively, after the Supreme Court of Chile halted construction on the companies’

joint copper-gold project.

The Standard & Poor’s/TSX Composite Index gained 54.94 points, or 0.5 percent, to 12,292.69 in Toronto.

“There’s merger and acquisition speculation in that sector,” Danielle Park, a money manager at Venable Park Investment Counsel Inc. in Barrie, Ontario, said in a telephone interview. The firm manages at least C$1 million ($1 million) each for more than 200 clients. “Shares are already down pretty significantly across the board” among energy shares, “so there may be some relative value there that people are finding,” Park said.

The benchmark gauge had its second straight weekly gain in the five days ending April 27, marking the first time since February that the index increased in two consecutive weeks.

Canadian stocks rose on better-than-forecast corporate earnings and U.S. housing data that exceeded expectations.

A gauge of energy stocks in the S&P/TSX rose 1.4 percent today to cut its loss for the year to 0.2 percent. Suncor, the country’s biggest oil and gas producer, advanced 3.1 percent to C$32.63. Canadian Natural Resources, Canada’s third biggest energy company, increased 2.4 percent to C$34.11. Enbridge Inc., the nation’s largest pipeline company, gained 2.2 percent to C$41.39.

Raw material producers declined after Canada’s gross domestic product fell 0.2 percent in February and Spain entered a recession.

First Quantum Minerals Ltd., Canada’s second-largest publicly traded copper producer, dropped 2.9 percent to C$20.52.

Manulife Financial Corp. slipped 1 percent to C$13.51.

“It’s the economic report for GDP in February coupled with some of the nervousness around European economic performance,” Bob Decker, a money manager at Aurion Capital in Toronto, said in a telephone interview. The firm oversees about C$5.5 billion ($5.6 billion).

Canada’s output fell to an annualized C$1.28 trillion ($1.30 trillion) in February, after a January gain of 0.1 percent, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News had forecast a 0.2 percent increase, according to the median of 24 responses.

Mining and oil and gas extraction dropped 1.6 percent to C$57.2 billion in February, while mining fell 7 percent as weak global demand led to potash shutdowns and several Ontario nickel mines closed “for safety issues,” Statistics Canada said.

Goldcorp fell 1.4 percent to C$37.83 and New Gold declined 8.4 percent to C$9. The companies stopped work at their El Morro copper and gold project after Chile’s Supreme Court suspended approval of the mine’s environmental permit. Goldcorp owns 70 percent of the venture, while New Gold owns the remaining 30 percent.

Dundee Precious Metals Inc. plunged 11 percent, the most since November 2009, to C$7.69. The Namibian government told the company to reduce output at a copper smelter by about 50 percent until projects to capture emissions are completed.

US

By Rita Nazareth

April 30 (Bloomberg) — The Standard & Poor’s 500 Index declined, halting a four-month advance, after a report showed that business activity expanded at the slowest pace since November 2009 and Spain’s economy entered into a recession.

Bank of America Corp., Caterpillar Inc. and Monsanto Co. retreated at least 1.7 percent. Humana Inc. tumbled 8.1 percent as profit at the provider of U.S.-backed Medicare insurance missed analysts’ projections. NYSE Euronext slumped 4.9 percent amid a 44 percent decline in earnings. Barnes & Noble Inc. soared a record 52 percent after Microsoft Corp. said it plans to invest $300 million in a venture with the bookstore chain.

The S&P 500 lost 0.4 percent to 1,397.91 at 4 p.m. New York time, extending its April decline to 0.7 percent. The Dow Jones Industrial Average fell 14.68 points, or 0.1 percent, to 13,213.63 today. The gauge rose less than 0.1 percent in April, gaining for a seventh month in the longest winning streak since 2007. About 6.1 billion shares changed hands on U.S. exchanges today, or 8.9 percent below the three-month average.

“Europe is a chronic situation,” said Russ Koesterich, the San Francisco-based global chief investment strategist for the IShares unit of BlackRock Inc. His firm oversees $3.68 trillion as the largest asset manager. “Even under a best-case scenario, where there’s no banking crisis, the reality is: it’s going to be a very slow process. While you’ve got evidence that the U.S. is recovering, the rebound will be uneven.”

Equities fell as the Institute for Supply Management- Chicago Inc. said its barometer slid to 56.2 during the month, lower than the most pessimistic forecast in a Bloomberg News survey. Consumer spending in the U.S. rose in March. Spain entered its second recession since 2009.

Today’s decline came after the S&P 500 capped the biggest weekly gain in more than a month. The measure was still up 11 percent in 2012 amid better-than-estimated economic and corporate data. About 74 percent of S&P 500 companies that reported results since April 10 have beaten earnings projections, according to data compiled by Bloomberg.

“The economic doldrums in Europe are casting a shadow over any progress we’re making,” said Jack Ablin, chief investment officer of Harris Private Bank in Chicago, which oversees about $60 billion. “We may not get a negative period for the market, but it may just be a quiet one.”

Technology and industrial shares fell the most among 10 S&P 500 groups. A gauge of homebuilders in S&P indexes slid 1.6 percent after last week surging to the highest since 2008. Bank of America fell 1.7 percent to $8.11. Caterpillar slipped 1.7 percent to $102.77. Monsanto dropped 2.1 percent to $76.18.

Humana lost 8.1 percent, the most since 2009, to $80.68.

Net income dropped 21 percent to $248 million, or $1.49 a share, from $315 million, or $1.86, a year earlier. The per-share result missed by 2 cents the $1.51 average of 9 analyst estimates compiled by Bloomberg.

NYSE Euronext slumped 4.9 percent to $25.75. European regulators blocked NYSE Euronext from merging with Deutsche Boerse AG in February, frustrating plans to mitigate a slowdown in stock trading and boost earnings and sales through cooperation on derivatives. Today’s report highlights the challenges that spurred the takeover proposal, exacerbated by a decline in equity volume across American exchanges to some of the worst levels in a decade.

VeriFone Systems Inc. slipped 12 percent to $47.64. The largest maker of credit-card terminals was cut to sell from hold by Deutsche Bank AG.

Barnes & Noble soared 52 percent, the most in the Russell 2000 Index, to $20.75. The investment will give Microsoft about 18 percent of the newly formed company, which has yet to be named. The companies will develop a Nook e-reader application for Windows 8 and have also settled their patent litigation.

Merck & Co. jumped 2 percent, the biggest gain in the Dow, to $39.24. The company’s patent for the cholesterol drugs Zetia and Vytorin is valid and enforceable, a federal judge ruled April 27 in a case against Mylan Inc., which sought to sell generic versions of the drugs before the patent expires.

Takeover news helped lift some companies today, limiting the market’s losses. Sunoco Inc. climbed the most in the S&P 500, adding 20 percent to $49.29. The Philadelphia-based refiner agreed to be acquired for $5.3 billion in shares and cash by Energy Transfer Partners LP, which is adding oil transportation and distribution assets.

Gen-Probe Inc. surged 19 percent to $81.55. Hologic Inc., a maker of diagnostic medical and surgical devices, agreed to buy the company for about $3.7 billion in cash to expand its tests for sexually transmitted diseases.

Warner Chilcott Plc rallied 16 percent to $21.81. The maker of dermatology and women’s health drugs said it is exploring a sale of the company and is in talks with potential buyers.

Monster Beverage Corp. jumped as much as 28 percent after the Wall Street Journal reported Coca-Cola Co. is in talks to buy the maker of energy drinks, then erased the gain after Coca- Cola denied the report. Monster lost 0.8 percent to $65. Coca- Cola slid 0.4 percent to $76.32, trimming a loss of as much as 0.9 percent.

Harman International Industries Inc. gained 4.9 percent to $49.58. The maker of car audio systems reported third-quarter profit that exceeded analysts’ estimates and announced a record- high $2 billion contract.

Analysts predict U.S. shares will rise enough this year to boost the S&P 500 to a record, even as Wall Street strategists say the best is already over for American equities.

Individual price forecasts for stocks show the combined projection for the gauge has risen to 1,569.74, according to analyst estimates compiled by Bloomberg. That compares with the October 2007 high of 1,565.15. At the same time, strategists who base their predictions on assessments of the economy say this year’s rally represents all the gains investors will see.

Bullish forecasts are based on analysts’ expectations that S&P 500 earnings will reach records every year through 2014 as stimulus by the Federal Reserve props up the U.S. economy. Bears say Europe’s debt crisis won’t be contained and economic growth will be insufficient to maintain gains.

Analysts are signaling that 13 straight quarters of higher- than-expected earnings and record profits through 2014 will help drive the gauge back to its all-time high. Earnings will jump 14 percent to $105.12 a share in 2012, according to analysts’ estimates compiled by Bloomberg.

“The financial strength of corporate America is stronger than people believe,” Jeffrey Schwarte, a money manager who helps oversee about $258.2 billion in Des Moines, Iowa, at Principal Global Investors, said in a telephone interview on April 25. “We believe earnings ultimately matter.”

 

Have  a wonderful evening everyone.

 

Be magnificent!

To expect something is to look for something pleasant.

Searching for the pleasurable is a form of denial.

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

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

-Swami Prajnanpad, 1891-1974

As ever,

 

Carolann

 

Nothing in this world can take the place of persistence.

Talent will not; nothing is more common than

unsuccessful people with talent.  Genius will not; un-rewarded

genius is almost a proverb.

-Calvin Coolidge, 1872-1933

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

 

Dear Friends,

 

Tangents:

 

On this day in,

4977 B.C. – The Universe is created, according to German mathemetician Johannes Kepler (1571-1630); apparently he was off by 13.7 billion years

1994, Richard Nixon was laid to rest beside his Presidential library.

1813 – American forces capture York (present-day Toronto), the seat of government in Ontario.
1989 – Protesting students take over Tiananmen Square, in Beijing, China
1978 – The Afghanistan Revolution begins

photos of the day

April 27, 2012

India’s PSLV C-19 lifts off carrying its first indigenous radar imaging satellite RISAT-1 at the Satish Dhawan Space Center in Sriharikota, India. The satellite has the capability to take images of the earth during day and night as well as in cloudy conditions and will facilitate agriculture and disaster management, according to a news agency.

Arun Sankar K./AP

Passengers are pictured during the inauguration trip of the new regional two-floor train of the Swiss Federal Railways (SBB) connecting Geneva and Lausanne in Coppet near Geneva.

Valentin Flauraud/Reuters

Market Closes for April 27, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13228.31	+23.69
		+0.18%
S&P 500	1403.36	+3.38
		+0.24%
NASDAQ	3069.20	+18.59
		+0.61%
TSX	12237.75	+91.90
		+0.76%

International Markets

Market Index	Close	Change
NIKKEI	9520.89	-40.94
		-0.43%
HANG SENG	20741.45	-68.26
		-0.33%
SENSEX	17134.25	+3.58
		+0.02%
FTSE 100	5777.11	+28.39
		+0.49%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.088	2.055
CND. 30 Year Bond	2.634	2.620
U.S. 10 Year Bond	1.9348	1.9471
U.S. 30 Year Bond	3.1200	3.1224

Currencies

BOC Close	Today	Previous
Canadian $	1.01999	1.01443
US $	0.98040	0.98578
Euro Rate 1 Euro=		Inverse
Canadian $	1.29923	0.76969
US $	1.32521	0.75460

Commodities

Gold	Close	Previous
London Gold Fix	1662.98	1658.28
Oil	Close	Previous
WTI Crude Future	104.93	104.65
BRENT	120.47	120.15

Market Commentary:

Canada

By Joseph Ciolli

April 27 (Bloomberg) — Canadian stocks advanced, capping their second straight weekly gain, as metal and natural gas producers rose with prices for the commodities.

Agnico-Eagle Mines Ltd., a gold producer that operates in Canada, Mexico and Finland, gained 9.6 percent after reporting profit that beat analyst estimates. Encana Corp., the country’s biggest natural gas producer by volume, increased 3.8 percent.

Petrominerales Ltd., a Calgary-based oil company that operates in Latin America, plunged 18 percent after saying an exploration well was dry.

The Standard & Poor’s/TSX Composite Index increased 91.90 points, or 0.8 percent, to 12,237.75 in Toronto, for a 0.7 percent weekly gain. Natural gas futures rose to a three-week high and copper and gold increased as the U.S. dollar weakened following government data showing the American economy grew at a slower-than-forecast rate of 2.2 percent, even with the biggest gain in consumer spending in more than a year.

“You’re finally seeing the private sector pick up the slack while government stimulus trails off,” Barry Schwartz, a money manager at Baskin Financial Services Inc. in Toronto, said in a telephone interview. The firm oversees about C$400 million ($400 million). “I think there’s a big possibility for a rebound.”

The benchmark gauge had its first weekly gain in almost two months in the five days ending April 20, snapping its longest losing streak since 2008. Canadian stocks have rallied this week on better-than-forecast corporate earnings and U.S. housing data that exceeded expectations.

Materials companies increased along with gold futures, which advanced for the second straight day as the dollar declined, increasing demand for the metal as an alternative investment.

Agnico-Eagle Mines gained 9.6 percent to C$38.66 after reporting earnings excluding some items of 59 cents a share, exceeding the average analyst estimate of 37 cents. Barrick Gold Corp., the world’s largest producer of the metal, climbed 1.4 percent to C$39.88.

Energy stocks in the S&P/TSX increased as natural gas rallied on forecasts of colder-than-normal weather in the eastern and central U.S. that may boost demand for the heating fuel.

Encana increased 3.8 percent to C$20.18. Cenovus Energy Inc., the oil sands company spun off by Encana, advanced 3.4 percent to C$35.17. Canadian Natural Resources Ltd., the country’s third-largest energy company, rose 2.1 percent to C$33.31.

Petrominerales plunged 18 percent to C$14.09 after the company said it found no hydrocarbons at the La Colpa 2X well on Block 126 in Peru after completing testing.

Progressive Waste Solutions drove in index of Canadian industrials lower, dropping 4.5 percent to C$21.44. The nation’s biggest waste-management company reported earnings excluding some items of 20 cents per share, falling short of the average analyst estimate of 23 cents.

TMX Group Inc., the Canadian exchange owner facing a C$3.73 billion takeover by a group of Canadian banks and pension funds, rose 4.6 percent to C$44.70 after an antitrust regulator said its “serious concerns” on the sale may be mitigated by proposed rules governing the bourse.

US

By Rita Nazareth

April 27 (Bloomberg) — The Standard & Poor’s 500 Index capped the best week in a month, as retailers surged to a record, after improving corporate earnings and consumer confidence tempered lower-than-forecast economic growth.

Retailers in the S&P 500 climbed 3.5 percent for the biggest gain among 24 groups. Amazon.com Inc., the largest Internet retailer, and Expedia Inc., an online-travel company, surged at least 15 percent as earnings beat estimates. A gauge of homebuilders in S&P indexes rallied 3 percent to the highest level since October 2008. Starbucks Corp. tumbled 5.3 percent as same-store sales trailed analysts’ projections.

The S&P 500 added 0.2 percent to 1,403.36 at 4 p.m. New York time. The benchmark gauge for U.S. equities rallied 1.8 percent since April 20 for a back-to-back weekly gain. The Dow Jones Industrial Average gained 23.69 points, or 0.2 percent, to 13,228.31. About 6.2 billion shares changed hands on U.S. exchanges, or 7 percent below the three-month average.

“It all tells me that the economy continues to grow at a slow, steady pace,” said Jeffrey Layman, chief investment officer of BKD Wealth Advisors in Springfield, Missouri. His firm has $1.9 billion under management. “Consumers are feeling more confident and it’s a good thing. We’re pleased with the overall improvement in earnings.”

About 75 percent of the companies in the S&P 500 that reported results since April 10 have topped analysts’ estimates, according to data compiled by Bloomberg. Per-share profits are forecast to have grown 5.3 percent in the first-quarter, Bloomberg data show. That’s up from the 0.8 percent growth projection before the earnings season started.

Equities rose even after data showed the U.S. economy expanded at a 2.2 percent annual rate in the first quarter, less than the 2.5 percent increase forecast by economists. Confidence among U.S. consumers climbed in April to the highest level in a year, according to a separate report.

Pacific Investment Management Co.’s Mohamed El-Erian said lower-than-forecast U.S. growth suggests additional monetary stimulus remains on option for the Federal Reserve even though there is no immediate need for action.

“If we continue this weakening trend, the Fed will come back in and try to sustain this market and this economy,” El- Erian, the chief executive officer of the world’s largest manager of bond funds, said during an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “I don’t think there is an immediate need now.”

Today’s rally trimmed this month’s decline in the S&P 500 to 0.4 percent. If the index erases its April drop, it will cap the fifth straight month of gains, the longest winning streak since 2009. The gauge has gained 12 percent so far this year.

Six out of 10 groups in the S&P 500 rose today as companies that rely on consumer discretionary spending and industrial shares had the biggest gains. Ten of 11 stocks in a measure of homebuilders in S&P indexes advanced.

Amazon surged 16 percent, the biggest advance since October 2009, to $226.85. The company posted earnings-per-share that quadrupled the average analyst estimate. Chief Executive Officer Jeff Bezos is looking to add customers by pouring money into new versions of the Kindle and warehouses that are equipped to send out products faster.

Expedia soared 24 percent, the most in the S&P 500, to $40.31. “Gross bookings and revenue growth were again driven by strength in our hotel business with global room-nights growing 24 percent, a nice acceleration from the 19 percent we saw for the fourth quarter,” Dara Khosrowshahi, the company’s chief executive officer, said on a conference call yesterday.

Vivus Inc. jumped 3 percent to $25.15, the highest since 1997. A Vivus pill that is supposed to provide erections within 15 minutes, about half the time or less than Pfizer Inc.’s Viagra, won U.S. regulatory approval.

Starbucks retreated 5.3 percent, the most since Aug. 18, to $57.43. Sales at stores open at least 13 months rose 7 percent globally in the quarter. Analysts projected a gain of 8.2 percent, the average of 17 estimates compiled by Consensus Metrix. Such sales fell 1 percent in Europe, the Middle East and Africa amid “slight decreases” in transactions and average check, Starbucks said.

Customers in Europe “are just cautious, as you would expect, not unlike what they were like in the U.S. three and four years ago,” Chief Financial Officer Troy Alstead said in an interview. Starbucks “is not immune from that,” he said.

Procter & Gamble Co. slumped 3.6 percent to $64.44 for the biggest loss in the Dow. The world’s largest consumer-products company reduced its full-year earnings forecast amid higher costs for raw materials.

Ford Motor Co. dropped 2.3 percent to $11.60. The company seeking a second investment-grade credit rating said first- quarter profit fell 45 percent on a higher tax rate and as overseas losses ate into growing income from North America.

Allscripts Healthcare Solutions Inc. plunged 36 percent, the most in the Russell 1000 Index, to $10.30. The maker of clinical software slashed its earnings forecast for 2012. Chief Financial Officer Bill Davis will leave the company effective May 18, and three board directors resigned after disagreeing with a decision to terminate Chairman Phil Pead.

Utilities are poised to become the only one of the S&P 500’s 10 main industry groups whose investors receive dividends on every stock. AES Corp. and NRG Energy Inc., two independent power producers, plan to introduce payouts during the second half. They are the only utilities in the S&P 500 that don’t already provide dividend income.

The industry currently has the fourth-highest percentage of dividend-paying shares. Raw-material producers, makers of food, beverages and other consumer staples, and industrial companies are the top three, in that order.

More than 80 percent of S&P 500 companies pay dividends, said Howard Silverblatt, a New York-based senior index analyst at S&P. The figure is the highest since January 2000. Nasdaq OMX Group Inc. sent the percentage above that threshold two days ago by declaring a quarterly payout of 13 cents a share.

AES plans to distribute $120 million a year, starting in the fourth quarter. That’s equivalent to an annual dividend of about 16 cents a share. The Arlington, Virginia-based company’s most recent payout was in 1994, four years before joining the S&P 500, according to data compiled by Bloomberg.

NRG, a component of the index since 2010, plans to begin paying dividends in the third quarter. Investors would receive 36 cents a share annually. The company, based in Princeton, New Jersey, made a similar proposal in 2007 that was scrapped after a bid to refinance debt failed.

 

 

Have a wonderful weekend everyone.

 

Be magnificent!

There is no master, there is no instructor,

there is no person to tell you what you must do.

-Krishnamurti, 1895-1986

As ever,

 

Carolann

 

Income tax returns are the most imaginative

fiction being written today.

-Herman Wouk, 1915-

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7