February 8, 2018 Newsletter
1828: Jules Verne, author, born
1910: Boy Scouts of America established.
1921: Lana Turner, actor, born
1931: James Dean, actor, born.
On Feb. 8, 1996, in a ceremony at the Library of Congress, President Clinton signed legislation revamping the telecommunications industry, saying it would “bring the future to our doorstep.”
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PHOTOS OF THE DAY
A man skiing at Trocadero square covered by snow in front of the Eiffel Tower in Paris, France.
CREDIT: CHESNOT/GETTY IMAGES
Hot air balloons in the sky during a trip over historical Cappadocia region, in Nevsehir, Turkey.
CREDIT: BEHCET ALKAN/ANADOLU AGENCY/GETTY IMAGES
A performer poses during a portrait session on the stage of the circus structure built in Saint Mark’s square for this year’s Carnival in Venice, Italy.
CREDIT: SIMONE PADOVANI/AWAKENING/GETTY IMAGES
Market Closes for February 8th, 2018
|Bonds||% Yield||Previous % Yield|
10 Year Bond
10 Year Bond
30 Year Bond
|WTI Crude Future||61.15||61.79|
On this day in 1980, the total market value of all shares on the New York Stock Exchange surpasses $1 trillion for the first time.
Number of the Day
The IMF expects emerging economies as a whole to grow 4.9% in 2018, up from 4.7% last year, and more than double the growth rate in advanced economies.
By Kristine Owram
(Bloomberg) — After a couple of relatively calm days, Canadian stocks resumed their streak of triple-digit declines as concerns about rising interest rates re-emerged.
The S&P/TSX Composite Index fell 265 points or 1.7 percent to 15,065.61, the lowest in nearly five months. Every sector was in the red, with consumer discretionary posting the biggest decline, down 2.7 percent. Canada Goose Holdings Inc. tumbled 16 percent, the most ever, after earnings failed to meet investors’ lofty expectations.
The energy index fell 2.6 percent to the lowest since April 2016 as oil prices sunk to a five-week low. Advantage Oil & Gas Ltd. tumbled 6.5 percent and Crew Energy Inc. lost 6.4 percent.
In other moves:
* MEG Energy Corp. bucked the trend, rising 13 percent after agreeing to sell $1.3 billion in pipeline and storage assets
* Dollarama Inc. fell 4.2 percent, the most since 2015, after Desjardins Securities downgraded the stock, saying it’s running too far ahead
* OceanaGold Corp. gained 5.6 percent, Centerra Gold Inc. rose 4.1 percent and Eldorado Gold Corp. added 4 percent ahead of upcoming earnings.
* Western Canada Select crude oil traded at a $26 discount to WTI, the narrowest gap in three weeks
* Gold rose 0.4 percent to $1,316.90 an ounce
* The Canadian dollar weakened 0.3 percent to $1.2600 per U.S. dollar, the lowest since December
* The Canada 10-year government bond yield was little changed at 2.37 percent
By Sarah Ponczek and Jeremy Herron
(Bloomberg) — The dread that gripped equity markets earlier in the week re-emerged Thursday as U.S. stocks plunged on concern that rising interest rates will drag down economic growth.
U.S. stocks fell to two-month lows after a nine-day swoon, erasing their gains for the year. Thursday’s 3.8 percent loss took the S&P 500 Index’s decline since its Jan. 26 record past 10 percent, meeting the accepted definition of a correction. The Dow plunged more than 1,000 points.
The Cboe Volatility Index was more than double its level a week ago. Ten-year Treasury yields fluctuated near their four- year highs, while the yen found traction as a haven from the stock turmoil.
West Texas intermediate crude slid almost to its low for the year following a report showing record production from U.S. fields. Gold fluctuated.
Traders remain on edge after the resurgent threat of inflation and higher bond yields helped trigger the burst of volatility and a pullback across the overheated global equity market.
Bulls may have to question the wisdom of buying the dip when more selling by speculators may be imminent. This week’s Treasury auctions have underwhelmed, raising the possibility that the debt selloff could steepen. Investors are also facing the prospect of Fed tightening, which could cool growth.
“There’s some big-money players that have really leveraged to the low rates forever, and they have to unwind those trades,” said Doug Cote, chief market strategist at Voya Investment Management. “They could be in full panic mode right now.”
U.K. gilts sold off and the pound rose after the Bank of England lifted its forecasts for economic growth and suggested it may need to raise interest rates faster than previously indicated. The euro fluctuated as ECB member Jens Weidmann said the central bank will monitor the impact of the currency on inflation. The yuan earlier fell the most since the currency’s devaluation in August 2015 after China reported a much narrower- than-expected trade surplus as imports jumped.
Here are some events scheduled for the remainder of this week:
* Earnings season continues.
* The Bank of Russia is set to hold a rates decision Friday, with most economists forecasting a cut.
And these are the main moves in markets:
* The S&P 500 Index fell 3.8 percent at the close in New York.
* The Dow Jones Industrial Average lost 4.1 percent and the Nasdaq 100 Index fell 4.2 percent.
* The Stoxx Europe 600 Index dipped 1.6 percent.
* The U.K.’s FTSE 100 Index sank 1.5 percent.
* The MSCI Emerging Market Index fell 1.2 percent.
* The Bloomberg Dollar Spot Index advanced 0.1 percent.
* The euro fell 0.2 percent to $1.2244.
* The British pound increased 0.2 percent to $1.3905, the first advance in a week.
* The Japanese yen gained 0.4 percent to 108.85 per dollar.
* The yield on 10-year Treasuries fell less than one basis point to 2.83 percent.
* Germany’s 10-year yield climbed two basis points to 0.76 percent.
* Britain’s 10-year yield climbed seven basis points to 1.617 percent, the biggest surge in five weeks.
* West Texas Intermediate crude declined 2.2 percent to $60.41 a barrel.
* Gold fell less than 0.05 percent to $1,317.19 an ounce.
* Copper fell 0.5 percent to $6,845 per metric ton.
* The Bloomberg Commodity Index fell 0.2 percent.
–With assistance from Kailey Leinz, Brian Chappatta and Randall Jensen.
Have a wonderful evening everyone.
Our attitude towards others determines their attitude towards us.
-Earl Nightingale, 1921-1989
Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
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