January 24, 2019 Newsletter
Dear Friends,
Tangents:
On Jan. 24, 1965, Winston Churchill died in London at age 90. Go to article »
PHOTOS OF THE DAY
Water flows around ice, formed on the American Falls in Niagra Falls, New York, due to subzero temperatures. Credit: Moe Doiron/Reuters
The snow-covered peaks of Mount Vesuvius volcano is framed by ancient ruins of the archeological excavations of Pompeii, near Naples, southern Italy. Credit: Cesare Abbate/Ansa/AP
Joana (left) and Jessica Ferreira stand among an installation of 800 school bags created by the Charity WaterAid on the steps of St. Paul’s Cathedral, London, representing the 800 children who die every day due to dirty water. Credit: Heathcliff O’Mally for The Telegraph
Market Closes for January 24th, 2019
Market
Index |
Close | Change |
Dow
Jones |
24553.24 | -22.38
-0.09% |
S&P 500 | 2642.33 | +3.63
+0.14% |
NASDAQ | 7073.461 | +47.693
+0.68% |
TSX | 15280.78 | +72.45
|
+0.48% |
International Markets
Market
Index |
Close | Change |
NIKKEI | 20574.63 | -19.09 |
-0.09% | ||
HANG
SENG |
27120.98 | +112.78 |
+0.42% | ||
SENSEX | 36195.10 | +86.63 |
+0.24% | ||
FTSE 100* | 6818.95 | -23.93 |
-0.35% |
Bonds
Bonds | % Yield | Previous % Yield | |||
CND.
10 Year Bond |
1.931 | 1.970 | |||
CND.
30 Year Bond |
2.159 | 2.188 | |||
U.S.
10 Year Bond |
2.7157 | 2.7409 | |||
U.S.
30 Year Bond |
3.0339 | 3.0617 |
Currencies
BOC Close | Today | Previous |
Canadian $ | 0.74907 | 0.74948 |
US
$ |
1.33499 | 1.33426 |
Euro Rate
1 Euro= |
Inverse | |
Canadian $ | 1.50904 | 0.66267 |
US
$ |
1.13037 | 0.88467 |
Commodities
Gold | Close | Previous |
London Gold
Fix |
1279.80 | 1282.10 |
Oil | ||
WTI Crude Future | 52.98 | 52.42 |
Market Commentary:
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks closed at their highest level of the day, boosted by stronger oil prices and strong earnings from Canadian Pacific Railway Ltd.
The S&P/TSX Composite Index rose 0.5 percent to 15,280.78, its first gain in three sessions. CP Rail jumped 3 percent to the highest since early December after the railway forecast double-digit earnings growth for 2019. That helped boost the industrials sector to a gain of 0.8 percent.
Energy stocks rose 0.9 percent as growing instability in Venezuela boosted crude prices. The health-care index led the gains, up 2.5 percent amid rising pot stocks. Aurora Cannabis Inc. added 7 percent and Cronos Group Inc. rallied 6.6 percent.
In other moves:
Stocks
* Canada Goose Holdings Inc. slid 7.1 percent after Wells Fargo Securities cut its rating on the stock, citing a less compelling valuation and a slowdown in popularity on the web
* Interfor Corp. jumped 9.2 percent to the highest since early November as lumber futures rose to a four-month high
* Great-West Lifeco Inc. fell 4.8 percent, the most since May 2017. The insurer is selling its U.S. individual life insurance and annuity business for C$1.6 billion
Commodities
* Western Canada Select crude oil traded at a $9.50 discount to WTI
* Gold fell 0.3 percent to $1,279.80 an ounce, the lowest since December
FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.3354 per U.S. dollar
* The Canada 10-year government bond yield fell 4 basis points to 1.93 percent
US
By Reade Pickert and Sarah Ponczek
(Bloomberg) — Stocks closed mostly higher as a rally in semiconductor shares helped temper concern the U.S. and China may be further from a trade resolution than investors had hoped. Treasury bonds remained a refuge and the dollar resumed its rally.
The S&P 500 and Dow Jones Industrial indexes swung between gains and losses most of the day after Secretary of Commerce Wilbur Ross said the world’s two biggest economies remain “miles and miles” apart on trade. White House economic adviser Lawrence Kudlow later said President Donald Trump is optimistic about trade talks and the January jobs report will be up a significant amount.
“What we’re seeing right now is this fight between really good earnings and the short-term news on tariffs,” Joe “JJ” Kinahan, chief market strategist at TD Ameritrade, said by phone. “It shows why tariffs have such a large influence on everything.”
The Philadelphia semiconductor index climbed 5.7 percent, the best day since Dec. 26 after strong earnings results from a trio of companies. Twenty-nine of the 30 index members traded higher, led by a 17 percent surge in Xilinx. U.S. airlines also rallied as American and Southwest predicted strong revenue gains after surpassing Wall Street’s profit estimates late last year.
“All had good and strong earnings and more importantly, looking into the future, they weren’t talking down their numbers,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh. “In fact they’re talking up their numbers so those are all signs of strength.”
After the close, Intel shares fell when the company reported revenue for the fourth quarter that missed the lowest analyst estimate.
It’s been a rocky week for investors, as they scramble for clues on both the global trade outlook and the health of the U.S. economy. Looming over everything is America’s partial government shutdown, which not only threatens to crimp activity but is also restricting the flow of economic data. The Senate blocked two rival proposals Thursday to reopen U.S. government agencies in largely partisan votes.
Elsewhere, the euro weakened as regional economic data fell short of forecasts, then showed little reaction to a widely expected European Central Bank rate hold. Europe’s shared currency later slumped as report circulated that the German government cut its growth forecast. Venezuela bonds extended their rally on speculation President Nicolas Maduro’s opponents will gain momentum in their efforts to oust him.
These are some events investors will be watching out for in the coming days:
* The World Economic Forum, the annual gathering of global leaders in politics, business and culture, continues in Davos, Switzerland.
And these are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.1 percent to 2,642.33 as of 4:09 p.m. New York time, while Nasdaq Composite Index gained 0.7 percent and the Dow Jones Industrial Average dropped 0.1 percent.
* The Stoxx Europe 600 Index rose 0.2 percent.
* The U.K.’s FTSE 100 Index dipped 0.4 percent.
* Germany’s DAX Index rose 0.5 percent.
* The MSCI Emerging Market Index rose 0.7 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.3 percent, the seventh increase in eight days.
* The euro slumped 0.6 percent to $1.1309.
* The British pound fell 0.1 percent to $1.3058, the first drop in four days.
* The Japanese yen rose less than 0.1 percent to 109.56 per dollar.
Bonds
* The yield on 10-year Treasuries fell three basis points to 2.71 percent.
* Germany’s 10-year yield fell five basis points to 0.18 percent, the fourth straight decline.
* Britain’s 10-year yield fell six basis points to 1.27 percent.
Commodities
* West Texas Intermediate rose 1.2 percent to $53.24 a barrel.
* Gold fell 0.2 percent to $1,281 an ounce.
Have a great night.
Be magnificent!
As ever,
Carolann
A person’s greatest virtue is his ability to correct his mistakes and continually make a new person of himself.
-Yang-Ming Wang, (Chinese philosopher, 1472-1529).
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
Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com