Category: Newsletters

Dear Friends,

 

Tangents:

On this date in,
1986 – Nuclear disaster at the Chernobyl power plant in the Soviet Union
1954 – Polio Vaccine trials begin
1984 – Reagan visits China
1994 – Nelson Mandela wins the presidency in South Africa’s first multi-racial elections
1514 – Copernicus makes his first observations of the planet Saturn
1983 – The Dow Jones Industrial Average breaks 1,200 for the first time

 

And in 1937, the massacre occurred in Guernica, Spain, for which the art world has one of the greatest paintings of all time, Picasso’s Guernica:

Guernica
Artist	Pablo Picasso
Year	1937
Type	Oil on canvas
Dimensions	349 cm × 776 cm (137.4 in × 305.5 in)
Location	Museo Reina Sofia, Madrid

Guernica is a painting by Pablo Picasso. It was created in response to the bombing of Guernica, Basque Country, by German and Italian warplanes at the behest of the Spanish Nationalist forces, on 26 April 1937, during the Spanish Civil War. The Spanish Republican government commissioned Picasso to create a large mural for the Spanish display at the Paris International Exposition at the 1937 World’s Fair in Paris.

Guernica shows the tragedies of war and the suffering it inflicts upon individuals, particularly innocent civilians. This work has gained a monumental status, becoming a perpetual reminder of the tragedies of war, an anti-war symbol, and an embodiment of peace. On completion Guernica was displayed around the world in a brief tour, becoming famous and widely acclaimed. This tour helped bring the Spanish Civil War to the world’s attention.  -from Wikipedia, the free encyclopedia.

photos of the day

April 26, 2012

A man listens to speeches during the inauguration of the sculpture ‘Agony of Fire’ by Nextor Basterrextea, in Guernica. Guernica is commemorating the seventy fifth anniversary of the aerial bombing by planes from the German Condor Legion, in aid of the nationalist military rebellion lead by General Francisco Franco.

Vincent West/Reuters

A woman lights candles to honor the memory of the victims of the Chernobyl disaster in Kiev, Ukraine. Ukraine marked the 26th anniversary since the Chernobyl power station exploded.

Sergei Chuzavkov/AP

 

And in tribute to Poetry in a Pocket Day, here is a poem I found in The New Yorker magazine this week that I liked:

 

RAIN AT THE BEACH

 

This light makes me think of a house underwater.

Because the ocean has corners

 

I cannot stop looking for you.

Careful, the red jellyfish

 

washed up onshore

sting after they’re dead. My mother said

 

a soul mate is problematic. I imagine a mother and daughter

 

with dripping wet hair

running down the beach

 

holding hands.  Left out in the rain,

a painting of a beach house

 

with a boat parked inside

is still a painting of a house.

 

Whoever said it’s difficult for artists

to be original

 

probably wasn’t an artist.

My new vegetarian lover

 

ate snails

off the house as a kid.

 

-Jennifer Chapis

 

Market Closes for April 26, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	13148.69	+57.97
		+0.44%
S&P 500	1392.76	+2.07
		+0.15%
NASDAQ	3034.63	+5.00
		+0.17%
TSX	12112.23	+1.17
		+0.01%

International Markets

Market  Index	Close	Change
NIKKEI	9561.83	+0.82
		+0.01%
HANG  SENG	20809.71	+163.42
		+0.79%
SENSEX	17130.67	-20.62
		-0.12%
FTSE 100	5748.72	+29.83
		+0.52%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.055	2.105
CND.   30 Year Bond	2.620	2.646
U.S.   10 Year Bond	1.9471	1.9840
U.S.   30 Year Bond	3.1224	3.1476

Currencies

BOC Close	Today	Previous
Canadian $	1.01443	1.01665
US   $	0.98578	0.98362
Euro Rate  1 Euro=		Inverse
Canadian   $	1.30107	0.76860
US  $	1.31984	0.75767

Commodities

Gold	Close	Previous
London Gold   Fix	1658.28	1643.60
Oil	Close	Previous
WTI Crude Future	104.65	104.08
BRENT	120.15

Market Commentary:

Canada

By Joseph Ciolli

April 26 (Bloomberg) — Canadian stocks rose for a second day as energy shares climbed with fuel prices, outweighing declines by material producers driven by higher-than-forecast U.S. jobless claims and earnings that missed estimates.

Encana Corp. rose 5.9 percent, adding to its 4 percent gain yesterday, when it reported a profit that beat analyst estimates. Canadian Natural Resources Ltd., the country’s third- largest energy company, advanced 0.8 percent to C$32.62.

Goldcorp Inc., the world’s second-biggest bullion producer, and Potash Corp. of Saskatchewan Inc., the biggest fertilizer company, dropped 6 percent and 3.2 percent, respectively, after reporting quarterly profit that trailed analyst forecasts.

The Standard & Poor’s/TSX Composite Index increased 34.79 points, or 0.3 percent, to 12,145.85 in Toronto.

“Oil is up and natural gas had an intraday spike,” Anil Tahiliani, a money manager at McLean & Partners in Calgary, said in a telephone interview. The firm oversees about C$1 billion ($1 billion). “The other news today wasn’t as bad as people thought initially.”

The S&P/TSX 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 rallied after the International Monetary Fund and the Bank of Canada said economic growth would be faster than previously forecast. The index had its worst decline in a week on April 23, after manufacturing shrank in Europe and China.

Energy producers in the S&P/TSX advanced after crude oil for June delivery rose to a three-week high and gas advanced, before erasing gains after the U.S. Energy Department reported inventories climbed more than forecast last week.

Encana rose 5.9 percent to C$19.44. Canadian Natural Resources advanced 0.8 percent to C$32.62. Talisman Energy Inc., an oil and gas producer with operations in North America, the North Sea and Indonesia, rose 2.3 percent to C$13.03.

Materials stocks in the S&P/TSX declined for the fourth time in five days after the earnings reports from Goldcorp and Potash.

Goldcorp dropped 6 percent to C$38.08 after reporting first-quarter profit excluding some items of 50 cents a share, less than the 53-cent average of 18 analyst estimates compiled by Bloomberg. The company said gold output dropped 39 percent at Red Lake in Ontario, its top producer, because of difficult ground conditions and lower-than-expected grades.

Potash Corp. lost 3.2 percent to C$42.25 as first-quarter net income dropped to 56 cents a share, compared with the 64- cent average of 26 estimates compiled by Bloomberg. Profit in 2012 will be $3.20 to $3.60 a share, the company said in a statement, down from its January projection of $3.40 to $4.

Some gold stocks increased as the metal rose the most in two weeks on speculation that the Federal Reserve may increase stimulus measures to bolster the U.S. economy after the release of the jobless numbers.

Eldorado Gold Corp., a Vancouver-based mining company, climbed 1.5 percent to C$13.99. Agnico-Eagle Mines Ltd., a gold producer that operates in Canada, Mexico and Finland, rose 4 percent to C$35.26.

US

By Rita Nazareth

April 26 (Bloomberg) — U.S. stocks gained, giving the Standard & Poor’s 500 Index its biggest three-day advance since February, after better-than-estimated housing data overshadowed disappointing earnings at United Parcel Service Inc.

A measure of homebuilders in S&P indexes rose 4.8 percent as PulteGroup Inc. rallied 10 percent amid a narrower loss.

Chevron Corp. advanced 2.3 percent as the energy company lifted its dividend. Amazon.com Inc., the largest Internet retailer, surged 12 percent at 4:57 p.m. New York time as revenue beat estimates. UPS, the biggest package-delivery company that is considered a proxy for the economy, retreated 1.8 percent.

The S&P 500 increased 0.7 percent to 1,399.98 at 4 p.m. New York time. It has advanced 2.4 percent in three days. The Dow Jones Industrial Average climbed 113.90 points, or 0.9 percent, to 13,204.62 today. About 6.7 billion shares changed hands on U.S. exchanges, almost in line with the three-month average.

“Things are better,” said Michelle Gibley, director of international research at San Francisco-based Charles Schwab Corp. Her firm has $1.83 trillion in client assets. “We did get several months of better-than-expected economic data. The earnings season has been pretty good.”

Equities rose as data showed that signed contracts to buy U.S. homes increased more than forecast in March. The Federal Reserve yesterday upgraded its estimates for growth and unemployment this year. Policy makers are holding off on additional steps to boost the economy amid signs that the more than two-year expansion is gaining strength. Yet earlier today, data signaled a cooling labor market as more Americans than forecast filed applications for unemployment benefits.

Investors also watched earnings data as profits have topped forecasts at 75 percent of S&P 500 companies reporting since April 10, according to data compiled by Bloomberg. Per-share profits are forecast to have grown 3.3 percent in the first- quarter, Bloomberg data show. That’s up from the 0.8 percent growth projection before the earnings season started.

“The most recent concern of the bears was that earnings this quarter were going to disappoint and take the market lower,” Birinyi Associates Inc., the Westport, Connecticut- based firm founded by Laszlo Birinyi, said in a note to clients.

“That this was a concern last quarter, as well, was conveniently forgotten.”

Today’s gain extended this year’s advance in the S&P 500 to 11 percent and the benchmark gauge for American equities trimmed its monthly decline to 0.6 percent. If the S&P 500 erases its April drop, it will cap the fifth straight month of gains, the longest winning streak since 2009. Financials and energy shares had the biggest losses in April, while telephone companies rose.

All 11 stocks in a measure of homebuilders in S&P indexes gained. PulteGroup jumped 10 percent to $9.58. The largest U.S. homebuilder by revenue, which has reported a loss in six of the last seven quarters, has been focused on cutting costs after the acquisition of Centex Corp. in August 2009.

Chevron rose 2.3 percent to $106.22. The second-largest U.S. energy company boosted its quarterly dividend to 90 cents a share from 81 cents.

More S&P 500 companies are paying dividends than at any time since 2000 after Apple Inc., Nasdaq OMX Group Inc. and six other corporations initiated payouts this year. The number has risen to 401, according to Howard Silverblatt, S&P’s senior index analyst. His estimate for total payouts this year, which Silverblatt said is under review, is a record $279 billion.

Companies are increasing shareholder returns in the form of dividends and buybacks after the 2008 financial crisis led them to hoard cash to a record $1 trillion by the end of 2011. The rise in payouts coincides with a 13th quarter of better-than- estimated earnings.

“Given underlying fundamentals, low payouts and cash reserves, 2012 should set a record high for cash dividend payments,” Silverblatt wrote in an e-mail today.

Amazon surged 12 percent to $220 after the close of regular trading. 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. The Kindle Fire tablet is the best-selling item on Amazon’s site, the company said.

Wal-Mart Stores Inc. rallied 2.8 percent, the most in the Dow, to $58.95. The world’s largest retailer rebounded after an

8.2 percent slump in three days, which was triggered by allegations that executives in Mexico paid more than $24 million in bribes to speed expansion.

Citrix Systems Inc. surged 12 percent to $86.76. The software maker forecast earnings in 2012 will be at least $2.75 a share, topping the average analyst estimate of $2.72.

The Dow Jones Transportation Average slid 1.1 percent. UPS dropped 1.8 percent to $78.25. Package volume gains at UPS, an economic bellwether because it carries goods from mobile devices to pharmaceuticals, have slowed in recent quarters as Asian economic growth cools. Average revenue per piece stagnated as the company struggles to raise rates.

FedEx Corp., which operates the world’s biggest cargo airline, last month projected a profit range for this quarter whose low end trailed analysts’ estimates as the company pared its global growth forecast.

Starbucks Corp. slumped 4.5 percent to $57.90 after the market close. The world’s largest coffee-shop chain reported second-quarter same-store sales that trailed analysts’ estimates amid weaker demand in Europe.

Exxon Mobil Corp. declined 0.9 percent to $86.07. The world’s largest energy company by market value said net income fell 11 percent as its biggest first-quarter production decline since 2008 wiped out most of the benefit of record oil prices.

Dow Chemical Co. slumped 3.4 percent to $34.85 after rising costs for oil-based raw materials in Europe and Asia cut earnings in plastics.

Akamai Technologies Inc. plunged 14 percent, the most in the S&P 500, to $33.15 after forecasting profit that missed estimates. The company that helps businesses deliver data at faster speeds over the Internet said Chief Executive Officer Paul Sagan will leave by the end of 2013. Akamai’s sales more than quadrupled during his leadership.

Aetna Inc. plunged 8.2 percent to $45.31. The third-biggest health insurer by sales reported first-quarter profit that missed analyst estimates.

The S&P 500 may lose as much as 10 percent from current levels given the market’s tendency to give back some gains after a “strong” rally, according to Bank of America Corp.’s Mary Ann Bartels.

“We’re in a correction,” Bartels, the New York-based head of technical and market analysis at Bank of America, said in a phone interview yesterday. “We’re starting to get sell signals on our intermediate indicators.”

Industries such as consumer staples, telecommunications and utilities have fallen too much as investors favor more “defensive” industries, Bartels said. Stocks driven by the economy, including materials, energy and industrial shares, have fallen out of favor, pointing to a potential “deeper pullback” for the U.S. equity market, she said.

“The market is still staying away from commodity-sensitive cyclicals,” Bartels said. “As long as that continues, that means the market is more likely to go down.”

 

Have a wonderful evening everyone.

 

Be magnificent!

The Upanishad tells us:  Know the soul that is your own.

In other words:  Realize the grand unique principle of the whole that is in all men.

-Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

 

Life is very nice, but it has no shape.  It is the purpose of art

to give it shape.
-Jean Anouilh, 1910-1987

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

 

 

Market Closes for April 26, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13148.69	+57.97
		+0.44%
S&P 500	1392.76	+2.07
		+0.15%
NASDAQ	3034.63	+5.00
		+0.17%
TSX	12112.23	+1.17
		+0.01%

International Markets

Market Index	Close	Change
NIKKEI	9561.83	+0.82
		+0.01%
HANG SENG	20809.71	+163.42 +0.79%
SENSEX	17130.67	-20.62
		-0.12%
FTSE 100	5748.72	+29.83
		+0.52%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.055	2.105
CND. 30 Year Bond	2.620	2.646
U.S. 10 Year Bond	1.9471	1.9840
U.S. 30 Year Bond	3.1224	3.1476

Currencies

BOC Close	Today	Previous
Canadian $	1.01443	1.01665
US $	0.98578	0.98362
Euro Rate 1 Euro=		Inverse
Canadian $	1.30107	0.76860
US $	1.31984	0.75767

Commodities

Gold	Close	Previous
London Gold Fix	1658.28	1643.60
Oil	Close	Previous
WTI Crude Future	104.65	104.08
BRENT	120.15

 

Dear Friends,

 

Tangents:

 

Today in,

1901 – the first license plates were issued.

1915 – The Battle of Gallipoli.

1917 – Ella Fitzgerald was born.

 

Today is Anzac Day in Australia & New Zealand.

 

I was listening to the Seattle radio station, NPR, while driving to work this morning and the announcer reminded listeners that tomorrow is Poem in Your Pocket Day.  April is national  poetry month in the US and April 26^th is Poem in Your Pocket Day.   It started in New York City 10 years ago and became a national celebration of poetry in 2009.

The idea is to select a poem you love then carry it with you to share with co-workers, family, and friends.  Poems from pockets will be unfolded throughout the day with events in parks, libraries, schools, workplaces, and bookstores.  Isn’t that a wonderful idea?

 

photos of the day

April 25, 2012

A young boy stands among gravestones during the wreath-laying ceremonies at the Australian National Memorial in Villers-Bretonneux, northern France, on Anzac Day. The ceremony marks the 94th anniversary of the recapture of the village of Villers-Bretonneux on April 25, 1918.

Michel Spingler/AP

A pack of riders cycle during the first stage of the Tour de Romandie cycling race near Cossonay, Switzerland.

Denis Balibouse/Reuters

Market Closes for April 25, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	13090.72	+89.16
		+0.69%
S&P 500	1390.69	+18.72
		+1.36%
NASDAQ	3029.63	+68.03
		+2.3%
TSX	12111.06	+130.96
		+1.09%

International Markets

Market  Index	Close	Change
NIKKEI	9561.01	+92.27
		+0.98%
HANG  SENG	20646.29	-30.87
		-0.15%
SENSEX	17151.29	-56.00
		-0.33%
FTSE 100	5718.89	+9.40
		+0.16%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.105	2.060
CND.   30 Year Bond	2.646	2.614
U.S.   10 Year Bond	1.9840	1.9682
U.S.   30 Year Bond	3.1476	3.1232

Currencies

BOC Close	Today	Previous
Canadian $	1.01665	1.01299
US   $	0.98362	0.98717
Euro Rate  1 Euro=		Inverse
Canadian   $	1.30025	0.76908
US  $	1.32190	0.75649

Commodities

Gold	Close	Previous
London Gold Fix	1643.60	1641.00
Oil	Close	Previous
WTI Crude Future	104.08	103.50

Market Commentary:

Canada

By Joseph Ciolli

April 25 (Bloomberg) — Canadian stocks rose for the first time in four days as natural gas prices increased and U.S. companies reported better-than-forecast earnings.

Encana Corp., the country’s biggest natural gas producer by volume, added 4 percent. Potash Corp. of Saskatchewan Inc. rose 3.9 percent after fertilizer producer Mosaic Co. reported an increase in demand. Agrium Inc., a fertilizer producer and farm retailer, gained 3.2 percent. Rogers Communications Inc., Canada’s biggest wireless provider, fell 4.4 percent after reporting earnings that missed analysts’ estimates.

The Standard & Poor’s/TSX Composite Index increased 130.96 points, or 1.1 percent, to 12,111.06 in Toronto, its biggest gain in almost two weeks.

“What you’re generally seeing is a bit of a bounceback after a few days of selling,” 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).

“Earnings season seems to be in decent shape. The majority of companies are coming in better than expected, which is certainly helping sentiment today.”

Of companies in the S&P 500 and S&P/TSX, 76 percent that have reported earnings since April 10 have beaten analyst forecasts, according to data compiled by Bloomberg. Apple Inc. said second-quarter profit was $12.30 a share, exceeding predictions by 23 percent, and Caterpillar Inc. beat estimates by 11 percent.

The S&P/TSX 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 rallied after the International Monetary Fund and the Bank of Canada said economic growth would be faster than previously forecast. The index had its worst decline in a week on April 23, after manufacturing shrank in Europe and China.

Canadian shares extended gains today after U.S. Federal Reserve Chairman Ben S. Bernanke said he’s prepared to do more to stimulate growth. Fed policy makers repeated the view that borrowing costs are likely to remain “exceptionally low” at least through 2014.

Energy companies increased as natural gas futures in New York rose for the third time in four days on speculation that decade-low prices will prompt production cuts and spur higher demand from power plants.

Encana advanced 4 percent to C$18.36. Niko Resources Ltd., which produces oil and gas in South Asia, rose 7.1 percent to C$41.39. Canadian Natural Resources Ltd., the country’s third- largest energy company, climbed 3.4 percent to C$32.37.

Materials stocks in the S&P/TSX rose, driven by potash shares. Mosaic Co., the largest North American phosphate- fertilizer supplier, said sales volumes in its fiscal quarter will be at the upper end of an earlier forecast because of a “rapid acceleration in demand.”

Potash Corp. rose 3.9 percent to C$43.65. Agrium gained 3.2 percent to C$86.85.

Rogers decreased 4.4 percent to C$36.81, its largest drop since October 2010. The company reported first-quarter profit that missed analysts’ estimates, hurt by subsidies it offers on Apple’s iPhone.

BlackBerry maker Research In Motion Ltd. rose 2.6 percent to C$13.42 after Apple reported a 94 percent surge in profit and 59 percent jump in revenue in the quarter.

US

By Rita Nazareth

April 25 (Bloomberg) — U.S. stocks advanced, giving the

Nasdaq-100 Index its biggest gain this year, as Apple Inc.’s earnings almost doubled and Federal Reserve Chairman Ben S. Bernanke said he’s prepared to do more to stimulate growth.

Apple, the most valuable company, surged 8.9 percent for the biggest gain since November 2008. Boeing Co. added 5.3 percent as earnings beat estimates after the company delivered more commercial jets while pushing production to record levels.

Caterpillar Inc., the world’s largest maker of construction equipment, slumped 4.6 percent as revenue missed projections.

The Nasdaq-100 Index jumped 2.7 percent to 2,709.62 at 4 p.m. New York time. The Standard & Poor’s 500 Index added 1.4 percent to 1,390.69. The Dow Jones Industrial Average rose 89.16 points, or 0.7 percent, to 13,090.72. Apple is not a member of the 30-stock gauge. About 6.8 billion shares changed hands on U.S. exchanges, almost in line with the three-month average.

“It’s encouraging,” James Swanson, who oversees about $250 billion as chief investment strategist at Boston-based MFS Investment Management, said in a telephone interview. “The earnings season shows that companies can have good profitability in a low growth environment. As long as these earnings hold up, I’d say that’s a bright sign for the market.”

The S&P 500 has risen 11 percent in 2012 on better-than- estimated economic and corporate data. U.S. companies are beating earnings estimates at the highest rate in two years as economic growth at home helps counter a drag from Europe.

Profits have topped forecasts at 80 percent of S&P 500 companies reporting since April 10.

Earnings rose 11 percent on average, exceeding the 0.6 percent increase analysts projected when reporting began, according to data compiled by Bloomberg. All 10 industry groups in the S&P 500 delivered better-than-forecast results, with financial, telephone and technology companies leading with a positive rate of more than 10 percent, the data showed.

Stocks also rallied as policy makers said they expect growth to gradually accelerate, while refraining from new actions to lower borrowing costs. Central bankers today upgraded their forecasts for economic growth and unemployment while repeating their view that borrowing costs are likely to remain “exceptionally low” at least through late 2014.

“The Fed is providing an insurance policy to the economy,” said Ann Miletti, senior portfolio manager for Wells Fargo Advantage Funds in Menomonee Falls, Wisconsin. Her firm manages $213 billion. “There’s a sense that things are improving, yet there’s some instability. The Fed is saying that it will be there to help keep things going. Earnings have been strong. The market likes it.”

All 10 groups in the S&P 500 rallied today as gains were led by technology, which comprises 20 percent of the index. The group jumped 3.2 percent, the biggest advance since November.

The Morgan Stanley Cyclical Index of companies most-tied to the economy increased 1.6 percent. The Russell 2000 Index of small companies rallied 1.8 percent to 812.12.

Apple surged 8.9 percent to $610. Demand from Chinese consumers helped Apple sell a higher-than-predicted 35.1 million iPhones last quarter and made the world’s most populous country responsible for 20 percent of sales. Chief Executive Officer Tim Cook said there will be “a lot more opportunity” in China as he introduces the iPad and expands operations there.

Before today, the company’s shares had tumbled $75.95 since a record close of $636.23 on April 9 amid reports that indicated a possible shortage in key components for Apple’s mobile devices and showed a quarter-over-quarter decline in iPhone sales at wireless carriers.

“This report should erase any doubt in investors’ minds that this company can’t continue to deliver,” said Jack Ablin, chief investment officer of Harris Private Bank in Chicago, which oversees about $60 billion, including Apple shares.

Boeing gained 5.3 percent to $77.08. It shipped 137 jetliners last quarter, compared with 131 deliveries by rival Airbus SAS. Boeing is boosting output by more than 60 percent in the four years through 2014 to pare a record order backlog from customers seeking more fuel-efficient jets.

Aflac Inc. jumped 7.8 percent to $45.26. The world’s biggest seller of supplemental health insurance said first- quarter profit doubled as investment results improved.

Coca-Cola Co. rose 1.1 percent to $74.93 after voting to recommend a 2-for-1 stock split to keep the shares available to smaller investors. Chairman Muhtar Kent, who pushed for the company’s 11th stock split, may be philosophically at odds with his biggest investor, Warren Buffett.

Buffett, who controls a Coca-Cola stake of almost $15 billion, has resisted splitting Class A shares of his Berkshire Hathaway Inc. Splits, he said in a 1984 letter, may encourage short-term investment strategies that enrich brokers at the expense of the business.

“I don’t know what he would say about this one,” said Howard Buffett, the investor’s son and a director at Atlanta- based Coca-Cola. Howard Buffett, who spoke today on the sidelines of the soft-drink maker’s annual meeting, said he voted for the 2-for-1 split.

Exxon Mobil Corp. rose 0.6 percent to $86.85, after swinging between gains and losses today. The energy company raised its quarterly dividend to 57 cents a share from 47 cents a share, according to an e-mailed statement.

Caterpillar slumped 4.6 percent, the most in the Dow, to $103.44. The company says sales in developing nations this year will be lower than anticipated, a reversal after 2011 growth in Latin America and the Asia-Pacific region outpaced North America, helping to drive record revenue and profit.

The company is the latest manufacturer to report sales in China have been curbed. United Technologies Corp. yesterday posted a drop in Chinese orders while 3M Co. forecast below- rend growth in the country.

Goldman Sachs Group Inc. Chairman and Chief Executive Officer Lloyd C. Blankfein said he’s more optimistic about markets than some economists and investors.

“I tend to be a little more positive than what I’m hearing from other people,” Blankfein, 57, told Bloomberg Television today in an interview at the investment bank’s New York headquarters. “One of the big risks that people have to contemplate is that things go right.”

U.S. stocks look reasonably priced when the value of companies is measured against the size of the country’s economy, said David R. Kotok, Cumberland Advisors Inc.’s chairman and chief investment officer. He made a comparison between the total market capitalization of companies in the S&P 500 and nominal gross domestic product, which isn’t adjusted for inflation.

Yesterday’s ratio was 83 percent, according to data compiled by Bloomberg. The gauge peaked at 101 percent in May 2007, near the end of a five-year bull market, and 131 percent in August 2000, when the Internet bubble of the 1990s had begun to burst. The earlier readings are circled in the chart.

“We are still two years away from a new high” for the S&P 500, Kotok wrote in the report. The prediction stems from the outlook for corporate profits and labor costs along with the index’s ratio to GDP, he wrote.

The S&P 500 may climb in 2014 to 1,600, which would lift the total market value of its companies to 90 percent of GDP, according to Kotok. His estimate for the index exceeds the record close of 1,565.15 on Oct. 9, 2007.

 

Have a wonderful evening everyone.

 

Be magnificent!

Man is setting out to satisfy needs that mean more to him

than simply nourishment and clothing.

He is embarking on a rediscovery of himself.

The history of man is that of his voyage toward the unknown,

in the search for the realization of his immortal Self, of his soul.

-Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

 

Better than a thousand hollow words,

is one word that brings peace.

-Buddha, 563 BC-483 BC

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:

1961 – President Kennedy takes sole responsibility for the failed Bay of Pigs Invasion of Cuba

1968 – Leftist Students take over Columbia University in protest over the Vietnam War
1981 – The IBM Personal Computer is introduced
1953 – Winston Churchill is knighted by Queen Elizabeth
1948 – The Berlin Airlift begins to relieve the surrounded city

Nobody sees a flower – really – it is so small it takes time – we haven’t time – and to see takes time, like to have a friend takes time.  ~Georgia O’Keeffe

photos of the day

April 24, 2012

Antique busts reflect in a glass case during the reopening of the collection of antiques at the Friedrich Schiller University in Jena, central Germany. More than 2,000 original sculptures and plaster casts are seen in the new showrooms.

Jens Meyer/AP

Nitoru, a nine-month-old toy poodle, rides a radio control toy car operated by its owner in Tokyo during lunch time.

Itsuo Inouye/AP

Market Closes for April 24, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13001.56	+74.39
		+0.58%
S&P 500	1371.97	+5.03
		+0.37%
NASDAQ	2961.60	-8.85
		-0.30%
TSX	11977.87	-11.08
		-0.09%

International Markets

Market Index	Close	Change
NIKKEI	9468.04	-74.13
		-0.78%
HANG SENG	20677.16	+52.77 +0.26%
SENSEX	17207.29	+110.61
		+0.65%
FTSE 100	5665.57	-106.58
		-1.85%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.060	2.041
CND. 30 Year Bond	2.614	2.595
U.S. 10 Year Bond	1.9682	1.9349
U.S. 30 Year Bond	3.1232	3.0846

Currencies

BOC Close	Today	Previous
Canadian $	1.01299	1.00918
US $	0.98717	0.99091
Euro Rate 1 Euro=		Inverse
Canadian $	1.30260	0.76770
US $	1.31947	0.75788

Commodities

Gold	Close	Previous
London Gold Fix	1641.00	1638.50
Oil	Close	Previous
WTI Crude Future	103.50	103.07

Market Commentary:

Canada

By Joseph Ciolli

April 24 (Bloomberg) — Canadian stocks fell for a third day after reports that U.S. home purchases declined in March and Canadian retail sales fell for the first time in seven months in February.

Enbridge Inc., Canada’s largest pipeline company, decreased

1.1 percent after saying it will send divers to determine whether one of its two natural-gas pipelines 99 miles off the Louisiana coast is leaking. Potash Corp. of Saskatchewan Inc.

dropped 0.9 percent, leading material producers lower. Property- services company FirstService Corp. plunged 7.5 percent after missing analyst first-quarter earnings estimates. Celestica Inc.

increased 5.9 percent after beating analyst projections.

The Standard & Poor’s/TSX Composite Index decreased 8.85 points, or 0.1 percent, to 11,980.10 in Toronto.

“We need some strength out of China to get the materials space going,” Greg Taylor, a money manager at Aurion Capital Management in Toronto, said in a telephone interview. The firm oversees about C$5.5 billion ($5.6 billion). “At the end of the day, the Canadian market is just a derivative play on China.”

The S&P/TSX 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 rallied after the International Monetary Fund and the Bank of Canada said economic growth would be faster than previously forecast. The index had its worst decline in a week on April 23, after manufacturing shrank in Europe and China.

U.S. houses sold at a 328,000 annual rate, down from an upwardly revised 353,000 pace in February that was the highest in two years, according to Commerce Department data issued today in Washington. Canadian retail sales decreased 0.2 percent to

C$38.9 billion, according to Ottawa-based Statistics Canada, which also reduced its January sales-growth estimate to 0.2 percent from 0.5 percent.

Energy companies declined, driven by Enbridge’s investigation of the potential pipeline leak. Enbridge decreased

1.1 percent to C$39.07. Canadian Natural Resources Ltd., the country’s third-largest energy company, fell 0.6 percent to C$31.30.

Potash Corp., the world’s largest fertilizer producer by market value, fell 0.9 percent to C$42.03. Agrium Inc., a fertilizer producer and farm retailer, declined 1.1 percent to C$84.14.

FirstService plunged 7.5 percent to C$28.16 after posting a first-quarter loss of 10 Canadian cents a share. The average analyst estimate was for a profit of 18 Canadian cents.

Industrial stocks in the S&P/TSX increased, driven by analyst upgrades for Canadian National Railway Co, which climbed

2.3 percent to C$81.24. The company was raised to buy from hold at Canaccord Financial Inc., which projects 2012 earnings per share growth of 14 percent, higher than that company forecast of

10 percent. Raymond James Financial Inc., National Bank of Canada and Bank of Montreal also increased their ratings.

Canadian Pacific Railway Ltd., the country’s second-largest railroad, gained 2.1 percent to C$75.78. Calgary-based carrier WestJet Airlines Ltd. added 1.9 percent to C$14.14.

Celestica Inc., which makes electronics for companies including Research In Motion Ltd., increased 5.9 percent to

C$8.85 after reporting first-quarter adjusted earnings per share of 25 Canadian cents, beating the average analyst estimate of 22 Canadian cents.

US

By Rita Nazareth

April 24 (Bloomberg) — U.S. stocks advanced, following yesterday’s decline in the Standard & Poor’s 500 Index, amid better-than-estimated earnings at companies from AT&T Inc. to 3M Co. and as data indicated the housing market is stabilizing.

AT&T, the largest U.S. telephone company, and 3M, the maker of Post-it Notes, rose at least 1.5 percent. International Business Machines Corp. added 0.7 percent after the company boosted its buyback plan by $7 billion and raised its dividend.

Juniper Networks Inc. increased 7.2 percent as revenue beat analysts’ projections. Apple Inc. jumped 7.5 percent at 5 p.m.

New York time as profit almost doubled last quarter.

The S&P 500 rose 0.4 percent to 1,371.97 at 4 p.m. New York time. The Dow Jones Industrial Average added 74.39 points, or

0.6 percent, to 13,001.56. The Nasdaq Composite Index lost 0.3 percent to 2,961.60. About 6.2 billion shares changed hands on U.S. exchanges, or 7.8 percent below the three-month average.

“Stocks have room to move higher,” said David Kelly, who helps oversee about $394 billion as chief market strategist at JPMorgan Funds in New York. “Earnings are healthy. The bar has been lowered so far that you can just walk over it. Housing is on the mend. A sign of a market top is when people are exuberant. There’s no exuberance as witnessed yesterday.”

Equities rebounded from yesterday’s slump, extending this year’s rally in the S&P 500 to 9.1 percent. Earnings per share beat forecasts at 82 percent of S&P 500 companies that reported results since April 10, according to data compiled by Bloomberg.

Per-share profits grew 3.3 percent in the first-quarter, Bloomberg data show. That’s up from the 0.8 percent growth projection before the earnings season started.

Economic optimism helped fuel gains today as new home sales data indicated that cheaper borrowing costs are helping stabilize the real estate market. Federal Open Market Committee members began a two-day meeting today and tomorrow will probably repeat their plan to keep the benchmark interest rate low at least through late 2014, economists say.

A gauge of homebuilders in S&P indexes jumped 2.4 percent.

D.R. Horton Inc., the largest U.S. homebuilder by volume, rose

3.2 percent to $15.54. KB Home added 4.5 percent to $7.91.

Phone shares had the biggest gain among 10 S&P 500 groups, rallying 2.8 percent. AT&T added 3.6 percent to $31.72. Earnings beat estimates on lower smartphone upgrade costs and an increase in wireless data sales related to Apple’s iPad.

3M increased 1.6 percent to $88.49. The U.S. market drove sales at the industrial and transportation unit, the largest division at the St. Paul, Minnesota-based company.

IBM gained 0.7 percent to $200. The quarterly payout will rise 10 cents to 85 cents a share. IBM had $5.7 billion remaining from a previous buyback plan, bringing the total available for repurchases to $12.7 billion.

Technology companies are approaching consumer staples as the largest dividend payers, according data compiled by Howard Silverblatt, S&P’s New York-based senior index analyst. The technology group contributes about 14 percent of the S&P 500’s dividends, up from 5.1 percent in 2004. Consumer staples companies account for almost 15 percent.

Apple gained 7.5 percent to $602.25 after the close of regular trading. Net income in the fiscal second quarter climbed to $11.6 billion, or $12.30 a share, as revenue increased 59 percent to $39.2 billion. Analysts had predicted profit of

$10.02 a share on revenue of $36.9 billion.

Chief Executive Officer Tim Cook is increasingly relying on regions outside the U.S. for sales growth. That helped make up for sales declines from the previous quarter at the top U.S.

mobile-phone carriers, Verizon Wireless and AT&T. It also quelled speculation that Apple’s growth pace may slacken.

“China has been a very fast-growing region for them,”

said Abhey Lamba, an analyst at Mizuho Securities USA Inc. in New York. “There’s more disposable income, strong demand for high-end products and their penetration has been very low in that market. They have been highlighting that region as one of their focus areas.”

The company’s shares slumped 2 percent to $560.28 today, dropping for a fifth straight day. Motorola Mobility Holdings Inc. won a partial U.S. International Trade Commission judge’s ruling in its bid to block imports of Apple’s devices including the iPhone and iPad tablet computer.

Juniper Networks climbed 7.2 percent to $21.63. Results suggest that demand from cable companies and other Internet service providers for Juniper’s switches and routers may be improving, said Brian Marshall, an analyst at ISI Group.

Wal-Mart Stores Inc. slumped 3 percent to $57.77. The shares dropped 7.5 percent in two days, the most since January 2009. The retailer is investigating allegations that executives in Mexico paid more than $24 million in bribes to speed expansion there. The company also is the subject of a U.S.

Justice Department criminal investigation, a person familiar with the probe said yesterday.

Big Lots Inc. plunged 24 percent, the biggest decline in the S&P 500, to $34.71. The discontinued-merchandise retailer with more than 1,400 U.S. stores reduced its fiscal first- quarter sales forecast amid lower demand for electronics.

Netflix Inc. tumbled 14 percent to $87.68. The world’s largest video-subscription service projected a slowdown in growth of U.S. streaming customers.

Coach Inc. lost 4.3 percent to $71.87. The largest U.S.

luxury handbag maker reported fiscal third-quarter sales that beat analysts’ estimates by the smallest margin in 11 quarters.

Companies’ failure to boost forecasts for future profits and sales will weigh on the S&P 500 as investors project slower growth, according to Barclays Plc’s Barry Knapp.

Knapp predicts the S&P 500 will end the year at 1,330, 4 percent below the average forecast of 11 strategists surveyed by Bloomberg as of April 16. He forecasts combined profit by S&P

500 companies will be $103 a share this year. Analysts that cover companies in the index estimate earnings of $104.86 in

2012 and $118.06 in 2013, according to data compiled by Bloomberg.

“Guidance is not moving higher and as a result, even where companies are beating estimates, the stocks still aren’t going up,” Knapp, the New York-based head of equity strategy at Barclays, said in a radio interview on “Bloomberg Surveillance” with Tom Keene. “If the guidance doesn’t move up, if the revenue’s missed, really what you’re discounting in terms of the growth outlook is not all that great.”

 

Have a wonderful evening everyone.

 

Be magnificent!

To know our soul apart from our ego

is the first step toward accomplishing the supreme deliverance.

It is necessary that we know with absolute certainty that in essence we are spirit.

And we can only arrive at this knowledge if we render ourselves masters of our ego,

if we rise above all pride, all appetite, all fear, by knowing that material losses and the

death of the body can never take away the truth and the greatness of our soul.

-Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

A garden is always a series of losses set against

a few triumphs, like life itself.

-May Sarton, 1912-1995

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

Senior Vice-President &

Senior Investment Advisor

 

Dear Friends,

 

Tangents:

On this day:

 

William Shakespeare was born  on this day in 1564and he died on this day in 1616.

1896 – Motion pictures premiere in New York City.

1950 –  Chiang Kai-shek evacuates Hainan, leaving Mainland China to Mao Zedong and the Communists.

1975 – President Ford says that Vietnam War is over for America.

 

Question of the day:  What personal prisons have you built out of fears?

 

Ever since happiness heard your name, it has been running through the streets trying to find you.  ~ Hafiz of Persia

photos of the day

April 23, 2012

People take part in a protest outside the proposed location the US clothing retailer Abercrombie & Fitch propose to open a children’s store on Savile Row, the traditional men’s bespoke tailoring street, in the Mayfair district of London. The protest was organized by The Chap magazine, a publication for English gentlemen whose manifesto includes always wearing tweed and cultivating interesting moustaches.

Matt Dunham/AP

The tattooed signature on the neck of Natalia Lobo which Paul McCartney signed during his stadium concert in Recife, Brazil. After he signed the 21-year-old’s neck she immediately headed to a tattoo parlor to immortalize the autograph.

MJ Kim/MPL Communications/AP

Market Closes for April 23, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12927.17	-102.09
		-0.78%
S&P 500	1366.94	-11.59
		-0.84%
NASDAQ	2970.45	-30.00
		-1.00%
TSX	11988.95	-158.33
		-1.30%

International Markets

Market  Index	Close	Change
NIKKEI	9542.17	-19.19
		-0.20%
HANG  SENG	20624.39	-386.25
		-1.84%
SENSEX	17096.68	-277.16
		-1.60%
FTSE 100	5665.57	-106.58
		-1.85%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.041	2.047
CND.   30 Year Bond	2.595	2.612
U.S.   10 Year Bond	1.9349	1.9559
U.S.   30 Year Bond	3.0846	3.1168

Currencies

BOC Close	Today	Previous
Canadian $	1.00918	1.00773
US   $	0.99091	0.99232
Euro Rate  1 Euro=		Inverse
Canadian   $	1.30346	0.76719
US  $	1.31543	0.76021

Commodities

Gold	Close	Previous
London Gold   Fix	1638.50	1642.10
Oil	Close	Previous
WTI Crude Future	103.07	103.05

Market Commentary:

Canada

By Joseph Ciolli

April 23 (Bloomberg) — Canadian stocks fell the most in over a week as materials and energy shares declined after manufacturing shrank in the euro-area and China and the French election heightened concern over Europe’s sovereign debt crisis.

Barrick Gold Corp., the world’s largest producer of the metal, dropped 1.7 percent. First Quantum Minerals Ltd., Canada’s second-largest publicly traded copper producer, declined 5.3 percent. MEG Energy Corp., a Calgary-based oil- sands developer, fell 2.1 percent. Baja Mining Corp., which is building the Boleo copper and cobalt mine in Mexico, plummeted 37 percent after saying the project’s cost may be 22 percent higher than forecast.

The Standard & Poor’s/TSX Composite Index decreased 158.33 points, or 1.3 percent, to 11,988.95 in Toronto, its biggest drop since April 13.

“It’s the European numbers, plus another data point confirming that China is slowing,” Jennifer Radman, a money manager at Caldwell Investment Management Ltd. in Toronto, said in a telephone interview. The firm oversees about C$1 billion ($1 billion). “It’s a very widespread sell-off. Risk is coming out of the market due to those factors.”

The S&P/TSX 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 rallied after the International Monetary Fund and the Bank of Canada said economic growth would be faster than previously forecast.

Materials companies fell, driven by metals producers.

Copper headed for its biggest loss in more than a week in New York on concern that demand will slow as manufacturing contracts in China, the world’s biggest copper user. The metal also fell on concern that the outcome of French and Dutch elections will disrupt efforts to stem the region’s debt crisis.

Teck Resources Ltd., Canada’s biggest base-metal producer, decreased 3.7 percent to C$35.33.

First Quantum declined 5.3 percent to C$19.83 after being lowered to sector performer from sector outperformer at Canadian Imperial Bank of Commerce, which cited lowered gold and nickel price forecasts for 2012 and 2013. The rating means that the stock is expected to perform in line with its sector during the next 12 to 18 months.

Baja Mining plunged 37 percent, the biggest drop in more than nine years, to 57 Canadian cents. The Boleo project may cost an additional C$246 million after exhausting contingency and cost-overrun facilities, the Vancouver-based company said today in a statement.

Gold declined to a two-week low as a stronger U.S. dollar curbed demand for the metal as an alternative investment. Silver slumped to a three-month low.

Barrick Gold dropped 1.7 percent to C$39.29. Goldcorp Inc., the world’s second-biggest bullion miner, fell 3.4 percent to C$39.65. Silver Wheaton Corp., the country’s third-biggest precious-metals company by market value, decreased 3.6 percent to C$28.12.

Energy stocks in the S&P/TSX fell as oil declined the most in two weeks after preliminary reading of a purchasing managers’ index in China fanned concern that fuel consumption will diminish.

MEG Energy Corp. declined 2.1 percent to C$37.65. Cenovus Energy Inc., Canada’s fifth-largest energy company, dropped 1.2 percent to C$34.20.

Financial shares in the benchmark gauge also decreased for a second day. Toronto-Dominion Bank, the country’s second- largest lender, fell 1.4 percent to C$82.81.

US

By Rita Nazareth

April 23 (Bloomberg) — U.S. stocks joined a global selloff as political uncertainty in France and the Netherlands intensified concern about Europe’s sovereign debt crisis.

Bank of America Corp. fell 2.2 percent, following a drop in European lenders, as Dutch Prime Minister Mark Rutte offered to quit after lawmakers split over austerity and French President Nicolas Sarkozy lost the first round of his re-election bid.

Monsanto Co. and U.S. Steel Corp. slid at least 1.8 percent as European and Chinese manufacturing shrank. Wal-Mart Stores Inc. retreated 4.7 percent amid a bribery probe in Mexico.

The Standard & Poor’s 500 Index fell 0.8 percent to 1,366.94 at 4 p.m. New York time, near its highest level of the day. The Dow Jones Industrial Average slid 102.09 points, or 0.8 percent, to 12,927.17. The Russell 2000 Index retreated 1.5 percent to 791.85. About 6.6 billion shares changed hands on U.S. exchanges, or 2.5 percent below the three-month average.

“Markets are realizing that messy European national politics could aggravate already complex economic and financial conditions,” Mohamed El-Erian, the chief executive officer of Pacific Investment Management Co., said in an e-mail today. His company is manager of the world’s largest bond fund.

Equities from Hong Kong to Paris and Sao Paulo slumped as the Dutch prime minister ran out of room to maneuver after budget talks with Geert Wilders’s Freedom Party collapsed, triggering doubts about his country’s ability to retain its AAA credit rating. French President Sarkozy and challenger Francois Hollande will be in a second round of elections, vying to lead a country split over measures to end a debt crisis.

Economic concern grew as euro-area manufacturing fell and data indicated China’s production will contract for a sixth month. Today’s drop trimmed this year’s gain in the S&P 500 to 8.7 percent, which had been driven by better-than-estimated economic and corporate data. Earnings per share have topped forecasts at 84 percent of S&P 500 companies that reported results since April 10, according to data compiled by Bloomberg.

“The financial markets are correcting, but they will do better later in the year,” said Byron Wien, the vice chairman of Blackstone Advisory Partners LP, whose parent, New York-based Blackstone Group LP, is the world’s biggest private-equity firm.

“The U.S. is closer to self-sustaining momentum.” Wien has a forecast of 1,500 for the S&P 500 at the end of 2012, which would imply a 9.7 percent advance.

Economists surveyed by Bloomberg say that Federal Open Market Committee members, who begin a two-day meeting tomorrow, will likely keep monetary policy on hold as the U.S. shows signs of strength following record accommodation.

All 10 groups in the S&P 500 fell today. The Morgan Stanley Cyclical Index of companies most-tied to economic growth lost 1 percent. The Dow Jones Transportation Average, a proxy for the economy, declined 0.9 percent. A measure of homebuilders? in S&P indexes tumbled 2.3 percent.

American banks joined a 3 percent drop in a gauge of European lenders. Bank of America declined 2.2 percent to $8.18.

The shares have risen 47 percent this year. Citigroup Inc. decreased 1.9 percent to $33.25.

A measure of commodity shares in the S&P 500 dropped 1.4 percent. Monsanto, the world’s largest seed company, slid 1.8 percent to $75.74. U.S. Steel, the country’s largest producer of the metal by volume, lost 2.7 percent to $28.22.

Hedge funds cut their bets on higher commodity prices by the most in four months on mounting concern that Europe’s debt crisis will derail global growth and curb demand for raw materials. Money managers lowered net-long positions across 18 U.S. futures and options by 11 percent to 898,022 contracts in the week ended April 17, the most since Dec. 20, data from the Commodity Futures Trading Commission show.

Wal-Mart slumped 4.7 percent, the most in the Dow, to $59.54. Its probe of possible bribery in Mexico may prompt executive departures and steep U.S. government fines if it reveals senior managers knew about the payments and didn’t take strong enough action, corporate governance experts said.

Kellogg Co. tumbled 6.1 percent to $50.70. The largest U.S. maker of breakfast cereal cut its full-year earnings forecast, citing weaker-than-expected results in the first quarter.

Chief Executive Officer John Bryant said Kellogg faced “more significant challenges” in Europe and some categories in the U.S. in the first quarter than was expected. Net sales in the first quarter declined about 1.3 percent while earnings of $1 a share were unchanged from a year earlier, Kellogg said.

“We are obviously disappointed with the performance of the company,” Bryant said in the statement.

Apple Inc., which reports results tomorrow, fell 0.2 percent to $571.70, after swinging between gains and losses.

Since rising to a record on April 9, the shares have lost 10 percent as some investors speculated Apple may not be able to keep growing at the pace that made it the most valuable technology company. On average, the analysts surveyed by Bloomberg estimate fiscal second-quarter earnings of $9.96 a share for the company.

Profits at the maker of iPhones and iPads have beaten analysts’ estimates 97 percent of the time since 2003, Birinyi Associates Inc. said in a note today. The stock rises by an average 2.6 percent from the close prior to earnings to 8 a.m. the next day, the data showed.

Quarterly reports scheduled for this week also include economic bellwether United Parcel Service Inc. and AT&T Inc., the largest U.S. phone company. Caterpillar Inc., the world’s biggest maker of construction and mining-equipment, and Amazon.com Inc., the world’s largest Internet retailer, are due to announce their results.

The analysts surveyed by Bloomberg raised their first- quarter earnings estimates for S&P 500 companies. Per-share profits grew 3.3 percent in the first three months of the year, Bloomberg data showed on April 20. That’s up from the previous week’s projection for a 1.7 percent increase. Earnings per share will grow 8.8 percent during all of 2012, the data show.

SunTrust Banks Inc. jumped 2.8 percent to $23.23. The eighth-largest U.S. lender by deposits reported first-quarter profit that beat analysts’ estimates.

Amylin Pharmaceuticals Inc. rallied 14 percent to $26.06.

The maker of the diabetes drugs Bydureon and Byetta is seeking a buyer after rejecting an unsolicited bid from Bristol-Myers Squibb Co., two people with knowledge of the matter said.

Barnes & Noble Inc. advanced 18 percent to $13.41. Jana Partners LLC, a hedge fund that has pushed for companies to sell off assets, disclosed a 12 percent stake in the largest U.S. bookstore chain.

 

Have a wonderful evening everyone.

 

Be magnificent!

All of our selfish impulses, all of our personal desires, obscure our true vision of the soul,

as they only point out our shabby ego.  When we are aware of our soul,

we perceive the inner life that surpasses our ego

and that has profound affinities with the Whole.

 

Rabindranath Tagore, 1861-1901

 

As ever,

 

Carolann

 

Any sufficiently advanced technology is

indistinguishable from magic.

-Arthur C. Clarke, 1917-2008

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

 

Tangents:

 

Today in history:

1945- Soviet troops begin their attack on Berlin

1967- US bombers bomb Haiphong for the first time during the Vietnam war.

 

Birthdays:

121- Marcus Aurelius, Roman Emperor

1808- Napoleon III, Emperor of France

1893-Joan Miró, Spanish painter

 

Question: What do you think stands between you and happiness?

Every criticism, judgment, diagnosis, and expression of anger is the tragic expression of an unmet need. ~ Marshall Rosenberg, 1934-

photos of the day

April 20, 2012

The Comedie Francaise theatre temporary hall and columns, by French sculptor Daniel Buren (the ‘Colonnes de Buren’), are seen in the Palais royal gardens in Paris.

Benoit Tessier/Reuters

Indian girls look at an installation titled ‘Line of Control’ by Indian artist Subodh Gupta in New Delhi, India. The installation made of steel utensils is in the shape of a giant mushroom cloud referring to the dust-cloud of atomic bombings of Hiroshima and Nagasaki, while also alluding to the contested India-Pakistan border, according to a press release.

Kevin Frayer/AP

Market Closes for April 20, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13029.26	+65.16
		+0.50%
S&P 500	1378.53	+1.61
		+0.12%
NASDAQ	3000.45	-7.11
		-0.24%
TSX	12147.28	-6.41
		-0.05%

International Markets

Market Index	Close	Change
NIKKEI	9561.36	-27.02
		-0.28%
HANG SENG	21010.64	+15.63 +0.07%
SENSEX	17373.84	-129.87
		-0.74%
FTSE 100	5772.15	+27.60
		+0.48%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.047	2.045
CND. 30 Year Bond	2.612	2.593
U.S. 10 Year Bond	1.9559	1.9665
U.S. 30 Year Bond	3.1168	3.1208

Currencies

BOC Close	Today	Previous
Canadian $	1.00773	1.00454
US $	0.99232	0.99548
Euro Rate 1 Euro=		Inverse
Canadian $	1.31165	0.76240
US $	1.32179	0.75655

Commodities

Gold	Close	Previous
London Gold Fix	1642.10	1640.60
Oil	Close	Previous
WTI Crude Future	103.05	102.62

Market Commentary:

Canada

By Joseph Ciolli

April 20 (Bloomberg) — Most Canadian stocks rose as the main equity index completed its first weekly gain since February after energy shares advanced on improving in German business confidence and better-than-forecast U.S. earnings reports.

ARC Resources Ltd., a western Canadian oil and gas producer, climbed 3.8 percent. Enbridge Inc., Canada’s largest pipeline company, increased 0.9 percent. Bank of Nova Scotia, the country’s third largest lender, declined 0.5 percent, as banks declined for the first time this week. Barrick Gold Corp., the world’s biggest bullion producer, dropped 1.9 percent, dragging the Standard & Poor’s/TSX Composite Index lower, after Societe Generale SA put a sell rating on African Barrick Gold Plc.

The S&P/TSX decreased 6.41 points, or 0.1 percent, to

12,147.28 in Toronto, paring the five-day increase to 0.9 percent. Out of the 253 stocks in the benchmark gauge, 141 gained today.

“Earnings are trumping any fears that are coming out of Europe right now,” 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 don’t think we should be surprised because the economic data coming in over the first quarter was very strong.”

The S&P/TSX’s first increase in eight weeks snapped its longest losing streak since 2008. Canadian stocks rallied after the International Monetary Fund and the Bank of Canada said economic growth will be faster than previously forecast.

Energy companies rose as oil futures gained after the Munich-based Ifo institute said today its business climate index, based on a survey of 7,000 executives, climbed for a sixth month in April. Profit reports from U.S. companies including Microsoft Corp. and General Electric Co. beat estimates.

ARC Resources rose 3.8 percent to C$19.21. Enbridge increased 0.9 percent to C$39.59. MEG Energy Corp., a Calgary- based oil-sands developer, climbed 1.6 percent to C$38.45.

Materials companies in the S&P/TSX were driven down by Barrick Gold, which dropped 1.9 percent to C$39.96.

African Barrick Gold, in which Barrick is the biggest shareholder, was rated new sell at Societe Generale after reporting results yesterday that missed analysts’ estimates.

Bank of Nova Scotia declined 0.5 percent to C$54.75 as an index of banks in the S&P/TSX fell 0.2 percent, reducing its weekly gain to 1.8 percent.

Molybdenum producer Thompson Creek Metals Co. retreated 4.2 percent to C$6.12 after reporting a preliminary first-quarter operating loss caused by its new Endako mill expansion.

US

By Whitney Kisling

April 20 (Bloomberg) — U.S. stocks rose, snapping a two- day decline for the Standard & Poor’s 500 Index, as profits from companies including Microsoft Corp. and General Electric Co.

beat estimates and German business confidence improved.

Equities pared gains as Apple Inc. slid 2.5 percent, extending its loss since April 9 to 9.9 percent. Microsoft, the largest software maker, rose 4.6 percent. GE jumped 1.2 percent as profit gains at the energy business outpaced finance for the first time in two years. McDonald’s Corp. added 0.7 percent amid higher-than-estimated earnings. Bank of America Corp. tumbled

4.7 percent, driving financial shares lower.

The S&P 500 gained 0.1 percent to 1,378.53 at 4 p.m. New York time, as the benchmark index for American equities completed a 0.6 percent weekly advance. The Dow Jones Industrial Average rose 65.16 points, or 0.5 percent, to 13,029.26 today.

More than 6.6 billion shares changed hands on U.S. exchanges, or

1.1 percent below the three-month average.

“On the back of some weaker recent economic data, the earnings story continues to showcase that companies can wring out some profits here,” James Dunigan, who helps oversee $112 billion as chief investment officer in Philadelphia for PNC Wealth Management, said in a telephone interview. “With the constant noise in the background of Europe we seem to be focusing more on the domestic story, at least today. That just gives more credence to the fact that the recovery continues to be in place.”

Profits for the 94 companies in the S&P 500 that reported quarterly results since April 10 beat estimates by 8.5 percent, according to data compiled by Bloomberg. The benchmark gauge for U.S. equities has risen 9.6 percent in 2012, even after the index lost 0.6 percent yesterday as home sales fell and jobless claims were more than forecast.

A report today showed German business confidence unexpectedly increased for a sixth month in April, adding to evidence that Europe’s largest economy can weather the sovereign-debt crisis.

Seven out of 10 industries in the S&P 500 advanced today as utilities and consumer-staples companies gained the most.

Microsoft rose 4.6 percent, the most in three months, to $32.42. The software maker reported fiscal third-quarter profit that topped estimates on better-than-expected sales of Windows and Office software for businesses. Corporate demand for Windows computers made up for tepid interest from consumers opting for tablet machines.

GE rose 1.2 percent to $19.36. Chief Executive Officer Jeffrey Immelt is increasing the focus on divisions that make gas turbines, jet engines and diesel locomotives while shrinking GE Capital’s balance sheet. He has pledged to boost industrial income this year by 5 percent to 10 percent, excluding the effect of acquisitions, while expanding margins.

Honeywell International Inc. rallied 2.4 percent to $59.39.

The maker of products from flight controls to work boots raised its 2012 forecast after posting quarterly profit that beat analysts’ estimates on demand for aircraft parts and energy technology.

Schlumberger Ltd. gained 2.7 percent to $71.70. The world’s largest oilfield-services provider reported first-quarter profit rose 38 percent as customers increased higher margin deep-water drilling around the globe in response to climbing crude prices.

E*Trade gained the most in the S&P 500, rising 6.1 percent to $10.48, as quarterly profit and revenue exceeded estimates.

The company said loan-loss provisions fell 41 percent to $72 million from the fourth quarter. The retail broker posted four years of losses through 2010, partly because of the subprime mortgage market collapse in 2007.

McDonald’s Corp. added 0.7 percent to $95.94. The world’s largest restaurant chain reported a 4.8 percent gain in first- quarter profit as new menu items such as Chicken McBites attracted U.S. consumers.

SanDisk, which makes memory chips used in mobile devices, declined 11 percent, the most in the S&P 500, to $35.91 after giving a second-quarter sales forecast that fell short of some analysts’ estimates. Chip production at SanDisk and its rivals is outpacing demand, causing prices to fall, Chief Executive Officer Sanjay Mehrotra said on a conference call with analysts yesterday. Some of the company’s customers also ordered fewer chips for mobile phones than SanDisk had predicted, he said.

Have a wonderful weekend everyone.

Be magnificent!

Death is extraordinarily like life,

when we know how to live.

You cannot live without dying.

You cannot live if you do not die

psychologically every minute.

Krishnamurti, 1895-1986

As ever,

Carolann

 

You can’t depend on your eyes when

your imagination is out of focus.

-Mark Twain, 1835-1910

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

Senior Vice-President &

Senior Investment Advisor

 

Hello All,

 

Carolann is still away on business, so it’s my turn to send the newsletter!

Tangents:

As you may have heard already, the iconic host of “New Year’s Rockin’ Eve,” Dick Clark, has passed away at age 82. His career spanned more than 60 years, and he will be greatly missed in the television community. New Years 2013 in Times Square won’t be the same without him!

 

Check out http://arts.nationalpost.com/2012/04/19/dick-clark-a-career-in-milestones/ for a look at some of his career highlights.

 

photos of the day

April 19, 2012

A man stands inside the art work “Five Minutes of Pure Sculpture” by British artist Anthony MacCall at the Hamburger Bahnhof museum in Berlin.
Markus Schreiber/AP

A surfer holding his surfboard leaves the water at a beach in the Barranco district of Lima, Peru.
Mariana Bazo/Reuters

Market Closes for April 19, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12964.10	-68.65
		-0.53%
S&P 500	1376.92	-8.22
		-0.59%
NASDAQ	3007.56	-23.98
		-0.79%
TSX	12153.69	+24.80
		+0.20%

International Markets

Market Index	Close	Change
NIKKEI	9588.38	-78.88
		-0.82%
HANG SENG	20995.01	+214.28
		+1.03%
SENSEX	17503.71	+111.32
		+0.64%
FTSE 100	5744.55	-0.74
		-0.01%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.045	2.044
CND. 30 Year Bond	2.593	2.588
U.S. 10 Year Bond	1.9665	1.9735
U.S. 30 Year Bond	3.1208	3.1232

Currencies

BOC Close	Today	Previous
Canadian $	1.00454	1.00897
US $	0.99548	0.99111
Euro Rate 1 Euro=		Inverse
Canadian $	1.30770	764700.
US $	1.31364	0.76125

Commodities

Gold	Close	Previous
London Gold Fix	1640.60	1640.10
Oil	Close	Previous
WTI Crude Future	102.62	102.70

 

Market Commentary:

Canada

By Lu Wang and Joanna Ossinger

April 19 (Bloomberg) — Canadian stocks climbed for a second time in three days as mining companies advanced with gold prices and Research In Motion Ltd. rallied on speculation it will hire a financial adviser soon.

Lundin Mining Corp., which produces base metals in Europe, gained 5.8 percent. Novagold Resources Inc. climbed 2 percent, while First Quantum Minerals Ltd. jumped 3.1 percent. Research In Motion rallied 2.6 percent after two people with knowledge of the matter said JPMorgan Chase & Co. was the leading candidate to help the BlackBerry maker weigh strategic options. Manulife Financial Corp. gained 1.9 percent as Desjardins Securities Inc. said the stock has the best potential to rise among insurers.

The Standard & Poor’s/TSX Composite Index advanced 24.80 points, or 0.2 percent, to 12,153.69 at 4 p.m. in Toronto. The gauge is heading for its first weekly gain since February after the Bank of Canada said economic growth will be faster than expected.

“We’re in a general uptrend economically and we do expect that to continue,” Tony Demarin, chief investment officer at BCV Asset Management in Winnipeg, Manitoba, said in a telephone interview. The firm oversees C$360 million ($363 million).

“Canada is a lot more on the resources side. When resources do well, that’s what drives the Canadian market.”

The S&P/TSX had its seventh straight weekly decline in the five days ending April 13, its longest losing streak since 2008, as weaker-than-forecast U.S. jobs numbers and reports of slowing growth in China raised concern that demand may slip for Canadian commodities. The U.S. is the world’s biggest consumer of oil, while China is the No. 1 user of copper.

Copper advanced as much as 0.6 percent, before erasing the gain, as the chief executive officer of Freeport-McMoRan Copper & Gold Inc. said on a conference call that global inventories are relatively low and still facing supply constraints. Gold rose after Christine Lagarde, the managing director of the International Monetary Fund, said she expects the resources of the IMF to be “significantly increased” amid Europe’s sovereign-debt crisis.

Lundin jumped 5.8 percent to C$4.56, and Novagold rose 2 percent to C$6.58. First Quantum added 3.1 percent to C$21.52.

Goldcorp Inc. climbed 1.7 percent to C$41.18.

Research In Motion advanced 2.6 percent to C$13.42. The company’s final choice for a financial adviser hasn’t been made and could come within days, one of the people familiar with the matter said.

Manulife increased 1.9 percent to C$13.47. Shares of Canada’s largest insurer may rally 37 percent from current levels this year as higher bond yields and rising equity market bolster earnings, according to Desjardins.

Alimentation Couche-Tard Inc. fell 2.2 percent to C$38.75.

The convenience store operator’s plan to finance its acquisition of Statoil Fuel & Retail ASA with floating rate debt is “not prudent” over the longer term, Peter Sklar, an analyst with BMO Capital Markets, said in a note to clients. He cut his rating on Alimentation to market perform from outperform. The market perform rating means the stock is expected to perform roughly in line with the market.

SXC Health Solutions Corp. rose the most in the S&P/TSX, jumping 8.9 percent to C$96.49. The provider of pharmacy benefit management services and health-care information technology will stay listed on the Toronto Stock Exchange after agreeing to buy Catalyst Health Solutions Inc. to expand in the U.S., the Globe and Mail reported, citing an interview with Chief Financial Officer Jeff Park.

 

US

By Nikolaj Gammeltoft and Michael P. Regan

April 19 (Bloomberg) — U.S. stocks fell for a second day as data on manufacturing, home sales and jobless claims tempered optimism in the economy, overshadowing improving earnings.

Spanish and French bonds slid; Treasuries and commodities rose.

The Standard & Poor’s 500 Index slipped 0.3 percent to 1,381.72 at 12:22 p.m. in New York after rising as much as 0.4 percent. The Stoxx Europe 600 Index fell 0.5 percent, erasing an earlier 1 percent rally. The S&P GSCI gauge of commodities rose

0.3 percent as crops led gains. Ten-year Treasury yields lost two basis points to 1.96 percent as rates on French and Spanish 10-year bonds climbed at least eight basis points, reviving concern about Europe’s debt crisis.

U.S. reports today showed existing-home sales unexpectedly fell 2.6 percent, the Federal Reserve Bank of Philadelphia’s manufacturing index trailed estimates and jobless claims exceeded projections. Morgan Stanley and Bank of America Corp.

reported earnings were boosted by higher trading revenue, while Ebay surged as its PayPal payments service fueled profit growth.

“You’ve got a lot of counter-balancing points,” Philip Orlando, the New York-based chief equity strategist at Federated Investors Inc., which oversees about $370 billion, said in a phone interview. “The jobless claims number was disappointing, while corporate earnings have been coming in stronger than expected,” he said. “Investors are looking at each incremental data point trying to draw conclusions.”

Industrial and consumer-discretionary stocks led losses in the 10 main S&P 500 industry groups, while telephone and health- care companies rose the most. The Philadelphia Fed’s general economic index decreased to 8.5 in April, the lowest level since January and less than the median forecast of economists for a reading of 12. The Labor Department reported initial jobless claims of 386,000 last week, topping the median estimate of 370,000.

EBay rallied 15 percent after sales and profit at the world’s largest Internet marketplace topped analysts’ estimates, spurred by growth in its PayPal online-payments business.

Verizon climbed 2.3 percent as smartphone demand boosted subscriber count. Qualcomm Inc., the biggest maker of mobile- phone semiconductors, declined 5.2 percent as its third-quarter forecasts fell short of some projections on increased spending to bolster chip output.

Profits for S&P 500 companies are forecast to rise 1.7 percent in the first quarter and 2 percent in the following period, according to analysts’ estimates compiled by Bloomberg.

Corn and wheat climbed more than 2 percent to lead gains in 18 of 24 commodities tracked by the S&P GSCI Index, which climbed 0.3 percent. Oil swung between gains and losses near $102.67 a barrel.

Among European stocks, Publicis Groupe SA dropped as France’s largest advertising company said growth will slow this quarter. GlaxoSmithKline Plc advanced after Human Genome Sciences Inc. rejected an unsolicited offer from the U.K.’s largest drugmaker. SKF AB, the world’s biggest maker of ball bearings, rose 4.9 percent after forecasting higher sales in the U.S. and Asia.

Spain’s 10-year bond yield increased 10 basis points, or 0.10 percentage point, to 5.93 percent and France’s yield added eight basis points to 3.10 percent. The French rate increased to 140 basis points above yields on benchmark German bunds, the highest level since January.

Spain sold 2.54 billion euros ($3.3 billion) of two-year and 10-year debt today, compared with a maximum target of 2.5 billion euros, and France auctioned 8 billion euros.

Spain sold the 10-year benchmark bonds at an average yield of 5.743 percent, compared with 5.789 percent on the secondary market before the auction, and 5.403 percent when it last sold the debt in January. It auctioned two-year securities at 3.463 percent. France issued 2.7 billion euros of benchmark five-year securities at an average yield of 1.83 percent, up from 1.78 percent on March 15.

Credit-rating companies will probably downgrade France over the next two to three years regardless of whether President Nicolas Sarkozy or his Socialist challenger, Francois Hollande, wins the election, Citigroup Inc. economist Michael Saunders wrote in a client note today. The nation may be cut one level by both S&P and Moody’s Investors Service, he wrote. Italy, Spain, Ireland and Portugal also face potential downgrades, he wrote.

Christine Lagarde, managing director of the International Monetary Fund, says she hopes to raise more than $320 billion in additional lending resources. That figure is not the “final ask,” she said in a Bloomberg Television interview today, adding that she expects countries to announce additional contributions.

In Asia, Hong Kong’s Hang Seng Index advanced 1 percent.

China will boost liquidity by cutting reserve requirement ratios if necessary, Xinhua News Agency said, citing an unidentified central bank official. The nation may also increase open market operations including reverse repurchase agreements and redemption of central bank bills, the report said.

The yen weakened against 14 of 16 major peers as Bank of Japan Governor Masaaki Shirakawa pledged to continue monetary easing. Growth in developed economies remains “anemic,” Shirakawa said yesterday in New York.

The MSCI Emerging Markets was little changed. Russia’s Micex Index gained 1.8 percent as steelmaker OAO Severstal jumped 5.7 percent after fourth-quarter profit beat estimates.

The benchmark index in South Africa rose 0.2 percent as retail sales exceeded forecasts and the inflation rate slipped.

 

 

Have a wonderful evening everyone.

 

Kind regards,

 

Nadia Aziz

Assistant to Carolann Steinhoff

 

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Dear Friends,

 

Tangents:

Went to hear Marlo Thomas last night speak about her life and experiences and thoughts…she is amazing.  Check out her website at marlothomas.com.  She is also starting a weekly blog for the Huffington Post –the first one is due before April 30^th, so look for it on her blog and the Huffington Post…

 

Today’s question:

Have you ever regretted something you did not say or do?

In history:

1942 – The Toronto Maple Leafs pull off the greatest comeback in NHL history with their fourth straight win to win the Stanley Cup series 4-3. ( I cringe thinking of the Canuck’s game tonight against LA).

 

1950- The first trans-Atlantic jet passenger trip is completed.

1906- A massive earthquake hits San Francisco, measuring 8.25 on the Richter Scale.

 

 

photos of the day

April 18, 2012

US Olympic gymnast Alaina Williams poses in mid-air during a trampoline demonstration in New York’s Times Square. The US Olympic team put on a demonstration to celebrate 100 days countdown to the London games.

Brendan McDermid/Reute

Giulia Lapi and Mariangela Perrupato of Italy perform in the Duets Technical Routine during a synchronized swimming qualification event at the Aquatic Center at Olympic Park in Stratford in east London.

Toby Melville/Reuters

Market Closes for April 18, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	13032.75	-82.79
		-0.63%
S&P 500	1385.14	-5.64
		-0.41%
NASDAQ	3031.45	-11.37
		-0.37%
TSX	12128.89	-8.05
		-0.07%

International Markets

Market  Index	Close	Change
NIKKEI	9667.26	+202.55
		+2.14%
HANG  SENG	20780.73	+218.42
		+1.06%
SENSEX	17392.39	+34.45
		+0.20%
FTSE 100	5745.29	-21.66
		-0.38%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.044	2.070
CND.   30 Year Bond	2.588	2.612
U.S.   10 Year Bond	1.9735	1.9981
U.S.   30 Year Bond	3.1232	3.1411

Currencies

BOC Close	Today	Previous
Canadian $	0.99111	0.99029
US   $	1.00897	1.00980
Euro Rate  1 Euro=		Inverse
Canadian   $	1.30027	0.76907
US  $	1.31193	0.76176

Commodities

Gold	Close	Previous
London Gold   Fix	1640.10	1650.20
Oil	Close	Previous
WTI Crude Future	102.70	104.26

Market Commentary:

Canada

US

By Rita Nazareth

April 18 (Bloomberg) — U.S. stocks fell, after the biggest advance in more than a month for the Standard & Poor’s 500 Index, as Intel Corp. and International Business Machines Corp. drove a slump in technology shares after reporting results.

Intel and IBM slumped at least 1.5 percent amid the slowest sales growth since 2009. Berkshire Hathaway Inc. Class A shares slid 1.3 percent as Warren Buffett was diagnosed with stage 1 prostate cancer. Genworth Financial Inc. tumbled 21 percent after delaying plans for a public offering of its Australian unit backing home loans after “elevated” losses in the nation.

Apple Inc. advanced 0.3 percent after Goldman Sachs Group Inc. raised its estimates for the most valuable technology company.

The S&P 500 dropped 0.2 percent to 1,387.75 at 3:24 p.m. New York time. The Dow Jones Industrial Average retreated 59.37 points, or 0.5 percent, to 13,056.17 today. The Russell 2000 Index of small companies lost 0.6 percent to 805.45. Trading in S&P 500 companies was 2 percent below the 30-day average.

“Profits are lukewarm,” said Nick Sargen, chief investment officer at Fort Washington Investment Advisors in Cincinnati, which oversees $40 billion. “You get disappointments from some bellwether technology companies at a time when the market has had such a good run. We’re not bearish, but if we’re going to add to positions, we need a pullback.”

Stocks fell as Intel forecast gross margin that was lower than some analysts predicted and IBM’s sales missed forecasts.

The S&P 500 had risen 11 percent in 2012 through yesterday on better-than-estimated economic and corporate data. Equities also dropped as Bank of England policy makers said inflation may be higher than forecast. Spain will auction 3.3 percent two-year notes and 5.85 percent 10-year debt tomorrow.

BlackRock Inc.’s Laurence D. Fink, who has been advising investors to put more money in stocks, said clients are still overwhelmed by fear as global markets remain “fragile” despite the first-quarter rally. Fink said investors remain pessimistic and customers removed money from active equity products while turning to passive investments such as exchange-traded funds.

The company’s share of fees from active stock funds, which last year were the biggest contributor to investment advisory revenue, fell below stock ETFs this year as investors migrated to passive products.

“The fears of the investor still are more overwhelming than the hope for a better future,” Fink, chairman and chief executive officer of New York-based BlackRock, said today during a conference call with investors and analysts. “Despite the rally in global equities from its lows, I would still qualify the market to be quite fragile.”

Intel slumped 1.5 percent to $28.05, while IBM retreated 3.5 percent to $200.29. IBM’s revenue climbed 0.3 percent to $24.7 billion in the period, while Intel sales rose 0.5 percent to $12.9 billion. That was the smallest increase for either company since the third quarter of 2009, when the U.S. economy was just emerging from recession. Even so, Intel predicted a pickup in sales for the current quarter.

The two technology giants are seeking growth in emerging markets while coping with a slowdown triggered by the European debt crisis. The personal-computer market, which contracted in the U.S. last year for the first time since 2001, also is hurting demand for Intel’s processors. IBM, meanwhile, is more focused on expanding earnings per share, rather than pursuing less-profitable orders.

“All else being equal, you’d rather see top-line growth,” said Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co. in New York. Still, he said, most investors are looking more closely at profit than sales. “IBM has conditioned investors to focus on EPS growth. That’s how it provides guidance.”

Berkshire Hathaway Class A shares lost 1.3 percent to $119,714 even after Buffett said his condition is “not remotely life threatening.” The 81-year-old billionaire will begin a two-month treatment of daily radiation in July, he said. The regimen will restrict his travel during the period and not otherwise change his daily routine, said Buffett, who is also chief executive officer of the Omaha, Nebraska-based company.

“I feel great — as if I were in my normal excellent health — and my energy level is 100 percent,” Buffett said in the letter yesterday. “I will let shareholders know immediately should my health situation change. Eventually, of course, it will; but I believe that day is a long way off.”

Genworth Financial Inc. tumbled 21 percent to $6.05. The IPO is now planned for early 2013, after the company previously targeted the offering for the second quarter of this year, the insurer said late yesterday in a statement. Genworth has said it plans to sell as much as 40 percent of the unit.

Apple rose 0.3 percent to $611.59, after swinging from gains to losses during the day. Goldman Sachs said investors should buy the shares amid what it describes as the beginning of a “very big year” as the company reports results next week.

Yahoo! Inc. advanced 3.5 percent to $15.54 after reporting first-quarter sales that topped estimates, fueling optimism that a turnaround effort by Chief Executive Officer Scott Thompson may take hold.

Halliburton Co. added 4.8 percent to $34.22. The world’s largest provider of hydraulic fracturing services said first- quarter profit increased as rising crude prices drove producers to expand drilling in North America.

Catalyst Health Solutions Inc. surged 32 percent to $84.06. SXC Health Solutions Corp. agreed to buy the company in a cash and stock transaction valued at $4.4 billion to stay competitive as larger pharmacy benefits managers join forces. SXC Health jumped 9.3 percent to $87.73.

Consumers may catch a break from higher food prices at U.S. supermarkets, said Charles Grom, an analyst at Deutsche Bank AG.

Consumer prices for groceries and producer prices for processed foods are rising more slowly this year, according to data compiled by the Labor Department.

The pace of price increases slowed in March by the most since July 2009, according to both indicators. Food bought at stores cost 3.6 percent more than a year earlier. The rate was 0.9 percentage point lower than in February. Processed-food prices last month rose 4.3 percent, a decline of 1.6 point.

“Food inflation should continue to slow,” he wrote, because increases last year were unusually steep. Prices for food that’s eaten at home peaked at a 6.2 percent growth rate last September. The pace was the fastest since December 2008.

Sales growth may suffer at Wal-Mart Stores Inc., the world’s largest retailer, and the Safeway Inc. and Supervalu Inc. supermarket chains as they struggle to raise prices, Grom wrote. The New York-based analyst has sell ratings on Wal-Mart and Safeway and a hold rating on Supervalu.

Have a wonderful evening everyone.

 

Be magnificent!

We would rather cling to the known than face the unknown-

the known being our house, our furniture, our family,

our character, our work, our knowledge, our fame, our loneliness, our gods –

that little thing that moves around incessantly within itself,

with its own limited embittered existence.

-Krishnamurti, 1895-1986

As ever,

 

Carolann

 

 

Over and over again mediocrity is promoted

because real worth isn’t to be found.

-Kathleen Norris, 1880-1966

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

 

Hello All,

 

Carolann is away on business in Vancouver today so I will be covering for the newsletter!

Tangents:

Here at the office, we often listen to Seattle’s National Public Radio station. One of the stories they covered yesterday was the announcements of this year’s Pulitzer Prize winners. You could tell there was additional excitement over this year’s winner for poetry. Tracy K. Smith, was the program All Things Considered’s first news poet. She spent a day with NPR in January and wrote a poem based on the news that day. I thought that the poem was really beautiful when they read it out loud on the radio. You can read it below.

 

“New Road Station”

History is in a hurry. It moves like a woman corralling her children onto a crowded bus. History spits, go, go, go, lurching at the horizon, hammering the driver’s headrest with her fist. Nothing else moves. The flies settle in place, watching with their million eyes, never bored. The crows strike their bargain with the breeze. They cluck and caw at the women in their frenzy, the ones who suck their teeth, whose skirts are bathed in mud.

But history is not a woman, and it is not the crowd forming in a square. It is not the bright swarm of voices chanting, no and now, or even the rapt silence of a room where a film of history is right now being screened. Perhaps history is the bus that will only wait so long before cranking its engine and barreling down the road.

Maybe it is the voice coming in through the radio, like a long distance call, or the child in the crook of his mother’s arm who believes history must sleep inside a tomb or the belly of a bomb.

 

photos of the day

April 17, 2012

A Kashmiri vegetable vendor holds a basket of bread at a floating market in the interiors of the Dal Lake in Srinagar.

Danish Ismail/Reuters

People visit the Shwedagon Pagoda during Myanmar’s New Year Day in Yangon.

Soe Zeya Tun/Reuters

 

Market Closes for April 17, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	13115.54	+194.13
		+1.50%
S&P 500	1390.78	+21.21
		+1.55%
NASDAQ	3042.82	+54.42
		+1.82%
TSX	12136.94	+99.35
		+0.83%

International Markets

Market Index	Close	Change
NIKKEI	9464.71	-5.93
		-0.06%
HANG SENG	20562.31	-48.33
		-0.23%
SENSEX	17357.94	+206.99
		+1.21%
FTSE 100	5766.95	+100.67
		+1.78%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.070	2.008
CND. 30 Year Bond	2.612	2.573
U.S. 10 Year Bond	1.9981	1.9858
U.S. 30 Year Bond	3.1411	3.1338

Currencies

BOC Close	Today	Previous
Canadian $	0.99029	0.99989
US $	1.00980	1.00011
Euro Rate 1 Euro=		Inverse
Canadian $	1.30001	0.76923
US $	1.31275	0.76176

Commodities

Gold	Close	Previous
London Gold Fix	1650.20	1648.70
Oil	Close	Previous
WTI Crude Future	104.26	103.09

 

Market Commentary:

Canada

By Joseph Ciolli

April 17 (Bloomberg) — Canadian stocks rallied following a two-day drop as energy producers advanced after the International Monetary Fund and the Bank of Canada said economic growth will be faster than they had previously forecast.

Suncor Energy Inc., Canada’s largest oil and gas producer, rose 2 percent. Uranium producer Denison Mines Corp. jumped 17 percent after agreeing to sell its U.S. mining assets. Manulife Financial Corp., North America’s third-largest insurer, rose 2.6 percent. Planemaker Bombardier Inc. advanced 3.3 percent after saying its maintenance and spare-parts unit may double revenue in the next five to seven years.

The Standard & Poor’s/TSX Composite Index increased 99.35 points, or 0.8 percent, to 12,136.94 in Toronto.

“The Canadian numbers came out from the Bank of Canada, and they indicate that we’ll see a little inflation, that the economy is a little stronger,” 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 picked up the Canadian dollar. People are maybe a tad too negative and it doesn’t take too much to move things along.”

The S&P/TSX had its seventh straight weekly decline in the five days ending April 13, its longest losing streak since 2008, as weaker-than-forecast U.S. jobs numbers and reports of slowing growth in China raised concern that demand may slip for Canadian commodities. The U.S. is the world’s biggest consumer of oil, while China is the number one user of copper.

The IMF raised its global growth forecast for the first time in a year, estimating a 3.5 percent expansion in 2012, compared with its January projection of 3.3 percent. It estimated the U.S. will grow 2.1 percent this year.

The Canadian central bank kept its main interest rate unchanged at 1 percent for a 13th time, while saying higher borrowing costs “may become appropriate” because economic growth and inflation will be faster than it forecast.

Energy companies rose after oil climbed in New York as Spain raised more than its maximum target at a debt auction, easing concern that Europe’s credit crisis will spread and slow economic growth. Spain sold 3.18 billion euros of bills.

Suncor Energy Inc. climbed 2 percent to C$31.43. Canadian Natural Resources Ltd. increased 2.3 percent to C$32.65.

Imperial Oil Ltd., Canada’s second-largest energy company, gained 2 percent to C$45.11.

Financial stocks in the S&P/TSX increased for a second day on the IMF forecast. Manulife Financial Corp. gained 2.6 percent to C$13.28. Toronto-Dominion Bank, the country’s second-largest lender, rose 1 percent to C$83.56.

Bombardier Inc. advanced 3.3 percent to C$4.12 after saying it plans to double revenue for its maintenance and spare-parts unit to $3 billion annually by expanding into emerging markets such as Russia and China.

Denison Mines, the operator of three U.S. uranium mines, surged 17 percent to C$1.65 after Energy Fuels Inc. agreed to acquire the assets for about C$111 million ($112 million) in stock.

Uranium One Inc., a mining company controlled by Moscow- based ARMZ Uranium Holding, climbed 13 percent to C$3 after being rated overweight in new coverage by JPMorgan. The rating means that the firm expects the stock to outperform the average total return of the stocks in the analyst’s coverage universe over the next six to 12 months.

US

By Rita Nazareth

April 17 (Bloomberg) — U.S. stocks rose, giving benchmark indexes the biggest rallies in a month, as higher forecasts from the International Monetary Fund and gains in Spanish bonds overshadowed declines in housing starts and factory production.

Apple Inc., the most valuable technology company, surged 5.1 percent after yesterday capping its longest losing streak since October. Bank of America Corp. and Citigroup Inc. added more than 1.4 percent as European lenders jumped after Spain sold more debt than targeted. Coca-Cola Co., rose 2.1 percent as earnings beat estimates. International Business Machines Corp. and Intel Corp., which gained in anticipation of their results, slumped at least 2.4 percent in extended trading.

The Standard & Poor’s 500 Index rose 1.6 percent to 1,390.78 at 4 p.m. New York time, after falling 1.3 percent in two days. The Dow Jones Industrial Average added 194.13 points, or 1.5 percent, to 13,115.54. The Nasdaq Composite Index climbed 1.8 percent to 3,042.82. About 6 billion shares changed hands on U.S. exchanges, or 11 percent below the three-month average.

“The market was able to shrug off disappointing U.S. economic reports,” said Paul Zemsky, the New York-based head of asset allocation for ING Investment Management. His firm oversees $160 billion. “We’ve got data showing the German economy is growing strong, positive earnings surprises in the U.S. and some good news out of Spain. There’s a lot of room for positive surprises given how pessimistic things were.”

Stocks rallied as the IMF raised its 2012 global growth estimate to 3.5 percent, German investor confidence rose and Spanish bonds gained. Expectations that Europe’s crisis is stabilizing overshadowed data showing that production at U.S. factories dropped in March for the first time in four months and builders broke ground on fewer houses than forecast.

Today’s gain extended the 2012 rally for the S&P 500 to 11 percent as investors bought stocks amid better-than-estimated economic and corporate data. While S&P 500 per-share profit growth slowed to 1.7 percent during the first three months of the year, it will accelerate to 8.6 percent during all of 2012, according to analyst estimates compiled by Bloomberg.

All 10 groups in the S&P 500 advanced as technology, energy and industrial shares had the biggest gains. The Morgan Stanley Cyclical Index of companies most-tied to economic growth added 1.4 percent as 28 of its 30 stocks gained.

“It’s a broad-based rally,” Mark Luschini, chief investment strategist for Philadelphia-based Janney Montgomery Scott LLC, which manages about $54 billion, said in a telephone interview. “There’s maybe a bit of ‘risk-on’ trade. Nonetheless, it seems like a healthy advance. Maybe what we’ve seen is the end of the pullback in equities.”

Since reaching an almost four-year high on April 2, the S&P 500 slumped 3.5 percent through yesterday on concern about global economic growth. The index is still down 1.3 percent in April, after capping the best first-quarter rally since 1998.

Apple rose 5.1 percent to $609.70, wiping out yesterday’s drop, amid predictions that quarterly results due next week will underscore buoyant demand for iPhones and iPads, the company’s best-selling products.

The KBW Bank Index added 1.7 percent as all of its 24 stocks gained. Bank of America added 1.5 percent to $8.92. Citigroup increased 3.2 percent to $35.08.

Coca-Cola gained 2.1 percent to $73.95. Chief Executive Officer Muhtar Kent has introduced smaller package sizes to attract price-conscious consumers as part of an effort to spur sales in North America.

Stocks also rose in anticipation of earnings at some of the largest technology companies. IBM, which jumped 2.3 percent to $207.45 in regular trading, tumbled 2.4 percent to $202.50 at

4:55 p.m. New York time. The biggest computer-services provider reported revenue that missed projections.

Intel slumped 2.9 percent to $27.64 in extended trading, after gaining for a second day ahead of its results. The world’s largest semiconductor maker predicted higher second-quarter sales than some analysts had estimated as it ships new personal- computer and server chips and shortages of hard drives abate.

First Solar Inc. surged 10 percent to $22.96. The largest thin-film panel maker will cut 30 percent of its workforce, about 2,000 jobs, as demand in Europe slows faster than the company can expand in emerging markets in Asia.

Goldman Sachs Group Inc. fell 0.7 percent to $116.86. The fifth-biggest U.S. bank by assets reported a 23 percent decline in first-quarter profit. Revenue from trading bonds, currencies and commodities lagged behind JPMorgan Chase & Co. The company also boosted its dividend 31 percent.

Whirlpool Corp. slumped 4.3 percent, the most in the S&P 500, to $68. The U.S. International Trade Commission said pricing and subsidies for refrigerators made by LG Electronics Inc. and Samsung Electronics Co. didn’t harm the U.S. industry.

Allocations in U.S. stocks almost doubled in April on renewed concern that the euro-area debt crisis will worsen, prompting investors to sell European equities and hoard cash, a Bank of America survey showed.

A net 27 percent of 191 respondents, who together manage $554 billion, said they were overweight U.S. stocks, meaning they hold more than is represented in benchmarks. That’s up from 14 percent last month. Expectations for an appreciation in the dollar hit the third-highest level in more than 10 years.

The U.S. “is a default for investors,” said Gary Baker, BofA’s head of European equity strategy, at a press briefing in London. “If you’re concerned about growth, and not sure how concerned you should be, ultimately the U.S. is still your safest haven.”

 

 

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:

 

The global    cul-de-sac?

 

“We are living in an isolation that would have been unimaginable to our ancestors, and yet we have never been more accessible,” writes Stephen Marche in The Atlantic.  “In a world consumed by ever more novel modes of socializing, we have less and less actual society.  We live in an accelerating contradiction: The more connected we become, the lonelier we are.  We were promised a global village; instead, we inhabit the drab cul-de-sacs and endless freeways of a vast suburb of information.” –The Globe & Mail, April 16^th, 2012.

 

There was an excellent article last month in The Financial Times by John McDermott, entitled How to have a conversation.  It’s a dying art, struck down by text, email and messaging, so can we be taught how to talk to each other?

He writes;  what makes a good conversationalist has changed little over the years.  The basics remain the same as when Cicero became the first scholar to  write down some rules, which were summarized in 2006 by The Economist:  “Speak clearly; speak easily but not too much, especially when others want their turn; do not interrupt; be courteous; deal seriously with serious matters and gracefully with lighter ones; never criticize people behind their backs; stick to subjects of general interest; do not talk about yourself; and above all, never lose your temper.”  But Cicero was lucky: he never went on a first date with someone more interested in their iPhone than his company.

And so the writer enrolled in The School of Life, an academy of “self-help” on Bloomsbury’s Marchmont Street, co-founded by philosopher Alain de Botton.  For about 30 pounds per session, students can  take classes with resident “fellow” of the school on a wide range of subjects, including “How to have a conversation.”

I kid you not.

photos of the day

April 16, 2012

Dancers participate in the Persian Day Parade in New York, Sunday. The parade is held in in commemoration of Newroz, the Persian New Year.

Keith Bedford/Reuters

The multi-hulls in competition are seen at the start area during during the America’s Cup World Series regatta in Naples, Italy, Sunday.

Alessandro Bianchi/Reuters

Market Closes for April 16, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12921.41	+71.82
		+056%
S&P 500	1369.57	-0.69
		-0.05%
NASDAQ	2988.40	-22.93
		-0.76%
TSX	12037.59	-2.80
		-0.02%

International Markets

Market Index	Close	Change
NIKKEI	9470.64	-167.35
		-1.74%
HANG SENG	20610.64	-90.40
		-0.44%
SENSEX	17150.95	+56.44
		+0.33%
FTSE 100	5666.28	+14.49
		+0.26%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.008	1.988
CND. 30 Year Bond	2.573	2.552
U.S. 10 Year Bond	1.9858	1.9823
U.S. 30 Year Bond	3.1338	3.1273

Currencies

BOC Close	Today	Previous
Canadian $	0.99989	0.99975
US $	1.00011	1.00025
Euro Rate 1 Euro=		Inverse
Canadian $	1.31307	0.76158
US $	1.31322	0.76149

Commodities

Gold	Close	Previous
London Gold Fix	1648.70	1659.10
Oil	Close	Previous
WTI Crude Future	103.09	102.83

Market Commentary:

Canada

By Joseph Ciolli

April 16 (Bloomberg) — Canadian stocks swung between gains and losses as mining shares declined with metal prices while financial and energy shares advanced after a stronger-than- forecast increase in U.S. retail sales.

First Quantum Minerals Ltd., the country’s second-largest publicly traded copper producer, fell 3.5 percent as the metal slipped on concern over the European debt crisis. Suncor Energy Inc., Canada’s largest oil and gas producer, rose 1.3 percent.

Toronto-Dominion Bank, the country’s second-largest lender, climbed 0.8 percent. BlackBerry maker Research In Motion Ltd. declined 0.6 percent as Apple Inc. fell in New York, dragging U.S. equities lower.

The Standard & Poor’s/TSX Composite Index rose 7.23 points, or less than 0.1 percent, to 12,049.62 at 2:48 p.m. in Toronto.

“The initial optimism around retail sales drove futures up,” 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). “Now you’re seeing a big sell-off in Apple, which is a major component of the U.S. market. There’s a bit of a drag on North American markets as  whole as a result of the weakness in the U.S. right now.”

The S&P/TSX had its seventh straight weekly decline for the five days ending April 13, its longest losing streak since 2008, as weaker-than-forecast U.S. jobs numbers and reports of slowing growth in China raised concern that demand may slip for Canadian commodities. The U.S. is the world’s biggest consumer of oil, while China is the number one user of copper.

Energy companies increased today as U.S. retail sales gained 0.8 percent in March, almost three times as much as projected, following a 1 percent advance in February, according to Commerce Department figures. The median forecast of 81 economists surveyed by Bloomberg News called for a 0.3 percent rise. A separate report showed manufacturing in the New York region expanded in April at the slowest pace in five months.

Suncor Energy Inc. rose 1.3 percent to C$30.84. TransCanada Corp., the developer of the proposed Keystone XL pipeline, gained 1.4 percent to C$43.09. Vermilion Energy Inc., which operates in France, Australia, Canada and the Netherlands, increased 0.6 percent to C$45.82.

Financial shares also advanced on the U.S. retail sales figures. Toronto-Dominion Bank climbed 0.8 percent to C$82.64.

Royal Bank of Canada, the country’s biggest lender, increased 0.9 percent to C$56.36.

Materials stocks in the S&P/TSX fell, driven by metal producers, as gold and copper prices retreated. Gold futures declined for a second straight session in New York as a stronger dollar curbed demand for the precious metal as an alternative asset.

Ivanhoe Mines Ltd., Rio Tinto Group’s partner in the Oyu Tolgoi Mongolian gold and copper mine, fell 4.6 percent to C$12.17. Detour Gold Corp., which is developing a mine in Ontario, declined 2.3 percent to C$24.21.

Copper fell to a three-month low in New York as rising yields on Spanish government bonds stoked concern that the sovereign-debt crisis in Europe may worsen, potentially curbing demand. First Quantum Minerals Ltd. slid 3.5 percent to C$20.85.

Apple dropped 2.7 percent to $588.92 after falling as much as 3.8 percent, the most intraday since Oct. 19. The world’s biggest technology company fell for a fifth day amid speculation that demand for the iPad may wane and that mobile-phone carriers will cut subsidies for the iPhone, eroding profitability of Apple’s best-selling products.

RIM, Canada’s biggest technology company, slipped 0.6 percent to C$12.78, extending its loss for the year to 14 percent.

US

By Rita Nazareth and Susanne Walker

April 16 (Bloomberg) — Most U.S. stocks rose, following the biggest weekly decline of the year, as Citigroup Inc. led banks higher and stronger-than-forecast growth in retail sales bolstered optimism in the economy. Treasuries trimmed earlier gains and the Dollar Index retreated.

The Standard & Poor’s 500 Index fell less than 0.1 percent to 1,369.57 at 4 p.m. in New York while the Dow Jones Industrial Average increased 71.82 points to 12,921.41. About six stocks rose for every five that fell on U.S. exchanges. Ten-year Treasury yields lost less than one basis point to 1.98 percent and the dollar weakened against 10 of 16 major peers as the euro rose 0.5 percent to $1.3142, reversing a 0.6 percent earlier loss. Spanish 10-year bond yields increased nine basis points to 6.07 percent and jumped as much as 18 basis points.

Citigroup led U.S. banks higher after reporting fixed- income trading revenue more than doubled from the fourth quarter. Commerce Department data showed retail sales increased 0.8 percent in March, almost triple the median forecast of economists in a Bloomberg survey. Equities recovered after most stocks fell earlier as gains in Spanish and Italian bond yields fueled concern Europe’s debt crisis was worsening.

“The U.S. is a better economic story,” said Madelynn Matlock, who helps oversee about $14.6 billion at Huntington Asset Advisors in Cincinnati. “Retail sales showed that consumers are not being overwhelmed by gas prices. On top of that, corporate earnings should be at least respectable.”

The S&P 500 rebounded after tumbling 2 percent last week, its biggest drop of the year. Travelers Cos., Procter & Gamble Co. and Home Depot Inc. rose more than 1.4 percent to lead gains in the Dow. Citigroup Inc. climbed 1.8 percent as 23 of 24 stocks in the KBW Bank Index advanced.

Apple Inc. tumbled 4.2 percent, the most since October, and Google Inc. fell 3 percent as technology shares had the biggest decline among the 10 main S&P 500 groups.

Apple slid for a fifth day, the longest losing streak in six months, amid speculation that demand for the iPad may wane and that mobile-phone carriers will cut subsidies for the iPhone. The stock has lost almost 9 percent since closing at a record high of $636.23 on April 9.

Nasdaq OMX Group Inc. said late on April 13 that Texas Instruments Inc. will replace First Solar Inc. in the Nasdaq-100 Index, the basis for this year’s fifth-most-traded U.S. exchange-traded fund. Because Texas Instruments has a larger market capitalization than First Solar, other stocks in the index are likely to see their proportion shrink, according to Dave Lutz, head of ETF trading and strategy at Stifel Nicolaus & Co.

Apple influences the price of the Nasdaq-100 more than any other stock, accounting for almost 19 percent of its value, according to data compiled by Bloomberg. That’s double Microsoft Corp.’s weighting. Lutz, based in Baltimore, said in an e-mail that Apple shares may be down in part because of Nasdaq OMX’s decision.

“Apple is ubiquitous, it’s well-owned, it’s had a huge run up and people are taking some profits,” Matt McCormick, who helps oversee $6.2 billion at Bahl & Gaynor Inc. in Cincinnati, said in a telephone interview. “If you’re concerned about the market being choppy, you look at positions that had the biggest gains and Apple would clearly be one of those candidates.”

U.S. stocks started the session higher, with the S&P 500 climbing as much as 0.7 percent, as Commerce Department data showed U.S. retail sales rose 0.8 percent in March, topping the median economist estimate for 0.3 percent growth.

Treasury yields below zero on an inflation-adjusted basis for only the second time since Dwight D. Eisenhower’s presidency have split Wall Street’s biggest firms, underscoring the relative-value dilemma equity investors face following the biggest first-quarter rally in 14 years.

For Goldman Sachs Group Inc.’s Peter Oppenheimer, U.S. stocks offer a once-in-a-generation buying opportunity after yields on 10-year Treasuries fell to about minus 0.3 percent when the rate of inflation is deducted. Morgan Stanley’s Adam Parker advises caution, saying Federal Reserve stimulus that has led the fixed-income rally can’t last forever.

U.S. 30-year bonds erased gains, with the yield little changed at 3.13 percent after falling as much as four basis points. Rates on two-year notes were little changed at 0.27 percent.

“At least one eye is back on Europe,” said Thomas Roth, senior Treasury trader in New York at Mitsubishi UFJ Securities USA Inc. “It’s hard to be short Treasuries. You have to be a bit cautious,” he said. “The question is what matters more, what happens here or what happens in Europe.”

The dollar weakened more than 0.6 percent versus the Japanese yen and Norwegian krone. The yuan slid after China doubled the currency’s trading band against the dollar for the first time since 2007.

Auto companies and chemical producers led gains in the Stoxx Europe 600 Index, which climbed 0.3 percent. Vestas Wind Systems A/S rallied 13 percent in Copenhagen as Jyllands-Posten reported that Sinovel Wind Group Co. and Xinjiang Goldwind Science & Technology Co. are considering a bid for the wind- turbine maker.

Spain’s bonds declined as Jaime Garcia-Legaz, a deputy in the Economy Ministry, called on the European Central Bank to buy the nation’s debt to help stem financial-market turmoil. Spain is scheduled to sell bonds tomorrow and on April 19 as the cost of insuring its debt against default touched a record.

The yield on the German 10-year bund retreated two basis points to 1.72 percent. The difference in yield between Spanish 10-year bonds and German securities, Europe’s benchmark, was 11 basis points higher at 435 basis points, or 4.35 percentage points, after earlier widening by as much as 20 by points. The Italian-German yield gap widened by nine basis points to 3.88 percent. French 10-year bonds declined, with the yield advancing seven basis points to 3.02 percent.

Credit-default swaps on Spain jumped nine basis points to 511 after reaching 521 earlier, according to CMA. Contracts on Italy rose about seven basis points to 441, the highest level in almost three months.

Among commodities tracked by the S&P GSCI Index, nickel, gasoline and cotton fell at least 2.5 percent to lead declines among 16 of 24 materials.

Crude oil gained 10 cents to $102.93 a barrel in New York.

The reversal date of the Seaway crude pipeline was moved up, causing the spread between New York-traded futures and Brent in London to narrow to the least since February. Enbridge Inc. and Enterprise Products Partners LP said they would start moving oil from Cushing, Oklahoma, to the U.S. Gulf Coast via the pipeline in May.

Speculators cut bullish wagers on commodities by the most in 2012 on mounting concern that slowing growth in China will curb gains in demand. Money managers lowered net-long positions across 18 U.S. futures and options by 9.3 percent to 1.01 million contracts in the week ended April 10, the biggest reduction since Dec. 20, data from the Commodity Futures Trading Commission show. Copper holdings tumbled 84 percent, the most since November.

 

 

Have a wonderful evening everyone.

 

Be magnificent!

A mind that is burdened with the past is a sorrowful mind.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

All men who have achieved great things have been great dreamers.

-Orisen Swett Marden, 1850-1924

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

Senior Vice-President &

Senior Investment Advisor