January 11, 2019 Newsletter
Tangents: Happy Friday!
On Jan. 11, 1964, the United States surgeon general reported that cigarettes cause lung cancer. Go to article »
A 36-year-old neurosurgeon gets diagnosed with Stage IV lung cancer. Turns out, the surgeon is also a brilliant writer who will make you cry in public. This book, published posthumously, will make sure you don’t take your health for granted. -as recommended in the Skimm, January 11, 2019
I read When Breath Becomes Air when it was first published a few years ago and I highly recommend it, a worthwhile selection on this auspicious anniversary day.
PHOTOS OF THE DAY
People watch an immersive video introduction to Qualcomm 5G technology at the Las Vegas Convention Center during CES 2019 Las Vegas. Credit: David McNew/AFP/Getty Images
A highway in southwest China has become an “undersea tunnel”. Supported by the soothing lighting technology, the 700 metre long middle part of the Liupanshui-Weining (Expressway presents a dreamy “undersea world” on top of the tunnel. Patterns of sea water, sharks, shells and corals change dynamically as the vehicle moves forward. It is said it can effectively alleviate the fatigue of drivers. Credit: Imaginechina/Rex
Surfer Nick Wapner poses with his shark bitten surfboard Wednesday in Morrow Bay, California, USA. The 19-year-old California Polytechnic Sate of University was attacked by a great white shark at Montana de Oro State Park. Wapner kicked free and got himself to a hospital, where he received 50 stiches. Credit: David Middlecamp/The Tibune (of San Luis Obispo)
Market Closes for January 11th, 2019
|Bonds||% Yield||Previous % Yield|
10 Year Bond
10 Year Bond
30 Year Bond
|WTI Crude Future||51.59
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the sixth day, climbing 0.2 percent, or 35.69 to 14,939.18 in Toronto. The index advanced to the highest closing level since Dec. 5. Aurora Cannabis Inc. contributed the most to the index gain, increasing 7.5 percent. Cogeco Communications Inc. had the largest increase, rising 7.5 percent.
Today, 133 of 240 shares rose, while 99 fell; 8 of 11 sectors were higher, led by financials stocks.
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
Financials | 9.7774| 0.2| 18/7
Health Care | 7.9777| 2.9| 8/1
Communication Services | 6.0634| 0.7| 7/0
Real Estate | 5.0204| 1.1| 18/4
Consumer Staples | 3.1971| 0.5| 7/3
Materials | 2.6917| 0.2| 23/27
Consumer Discretionary | 2.6850| 0.4| 11/6
Information Technology | 1.7588| 0.3| 8/2
Utilities | -0.9265| -0.2| 7/9
Energy | -1.2527| 0.0| 12/28
Industrials | -1.3093| -0.1| 14/12
Top Contributors |Index Points Move| % Change
Aurora Cannabis | 4.1840| 7.5
Canadian Natural Resources | 3.8620| 1.3
Restaurant Brands | 3.1820| 2.4
Canadian Tire | -1.2280| -1.9
Canadian National | -2.2800| -0.4
Suncor Energy | -3.3380| -0.7
| | Index Points
Biggest Gainers | % Change | Move
Cogeco Communications | 7.5| 0.8460
Aurora Cannabis | 7.5| 4.1840
Aphria | 5.4| 0.7180
Biggest Losers | % Change |Index Points Move
NexGen Energy | -5.0| -0.2920
Seven Generations Energy | -4.9| -1.0770 New Gold | -4.7| -0.2880
* The Canadian dollar rose 0.26 percent to 1.3270 against the U.S. dollar
* The benchmark 10-year bond rose and the yield fell 3 basis points to 1.957 percent
By Sarah Ponczek and Reade Pickert
(Bloomberg) — Stocks finished down slightly Friday as a drop in energy shares and mounting concerns about the ongoing government shutdown balanced out strength among carmakers following an optimistic earnings forecast from General Motors Co. Treasuries rose and the dollar was flat, putting it on track for a fourth straight week of declines.
All major equity benchmarks were lower — barely. The S&P 500 Index saw a late day surge that left it down less than 0.05 percent, its first day in the red in more than a week, as utilities and energy companies retreated with oil tumbling below $52 a barrel. Meanwhile, auto companies gained around 3 percent on GM’s encouraging outlook. The gauge still posted its third straight weekly advance, climbing 2.5 percent. The post- Christmas rally had reached 10 percent before stalling at 2,600, a level it hasn’t topped since mid-December.
“Perhaps we’re seeing a bit of a pause here as bulls and bears fight it out at this key technical level,” said Matthew Miskin, a market strategist at John Hancock Investments in Boston.
The dollar rose early in the session before giving back the gains as investors appeared to be trimming positions heading into the weekend. It’s been pressured, and bonds have been boosted, by the Federal Reserve’s message of patience on further interest-rate hikes. That case was bolstered by U.S. price data showing inflation slowing in line with expectations.
“The saving grace of all of this is that the U.S. economy has actually withstood the test of 12 months of challenges without buckling over,” said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors.
The Stoxx Europe 600 Index retreated from an earlier gain to trade lower. In Asia, shares rose in Shanghai, Tokyo, Seoul and Hong Kong amid hopes for a breakthrough on the trade dispute between China and U.S. European debt tracked Treasuries higher.
The pound advanced even as Prime Minister Theresa May’s office countered reports that Brexit may be delayed.
Stocks are still on track for big gains this week on signs of progress between the world’s two biggest economies on trade and the Fed’s dovish commentary. Nevertheless, worries remain about economic growth and earnings prospects, while there’s also uncertainty as the U.S. partial government shutdown threatens to extend into a fourth week.
Chinese Vice Premier Liu He is set to visit Washington on Jan. 30 and 31 for further trade talks. China’s yuan, which slumped last year as trade tensions worsened, is heading for its best week since 2005 — back when the country dropped a fixed peg to the dollar.
These are the main moves in markets:
* The S&P 500 Index was down less than 0.05 percent after falling as much as 0.7 percent earlier in the session.
* The Stoxx Europe 600 Index declined 0.1 percent.
* The MSCI All-Country World Index climbed 0.3 percent to the highest in a month.
* The MSCI Emerging Market Index advanced 0.2 percent to the highest in more than five weeks.
* The Bloomberg Dollar Spot Index was little changed.
* The euro fell 0.3 percent to $1.1466.
* The Japanese yen dipped 0.1 percent to 108.53 per dollar.
* The British pound jumped 0.8 percent to $1.2848, the strongest since November. Bonds
* The yield on 10-year Treasuries tumbled five basis points to 2.6954 percent, the biggest fall in more than a week.
* Germany’s 10-year yield decreased two basis points to 0.239 percent.
* Britain’s 10-year yield increased two basis point to 1.29 percent.
* The Bloomberg Commodity Index added 0.2 percent.
* West Texas Intermediate crude fell 1.7 percent to $51.69 a barrel, the first retreat in more than two weeks.
* Gold gained 0.1 percent to $1,288.42 an ounce.
–With assistance from Adam Haigh, Tian Chen and Eddie van der Walt.
Have a wonderful weekend.
Our attitude towards others determines their attitude towards us.
–Earl Nightingale, 1921-1989
Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor
Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7
Toll Free: 1.877.430.5895