January 30, 2017 Newsletter

Dear Friends,

Tangents:
Chinese markets will remain closed for most of the week as Lunar New Year celebrations kick off for much of Asia. The PBOC pumped 1.13T yuan (roughly $165B) into domestic money markets last week via its routine operations as consumers prepared for shopping sprees and to hand out red packets filled with fresh notes to friends and relatives. Markets will reopen on Friday.

On Jan. 30, 1948, Indian political and spiritual leader Mahatma Gandhi was murdered by a Hindu extremist.
PHOTOS OF THE DAY

Performers participate in a temple fair at Daguanyuan Park as the Chinese Lunar New Year, which welcomes the Year of the Rooster, is celebrated in Beijing on Monday. Jason Lee/Reuters
Russian servicemen with the Northern Fleet’s Arctic mechanised infantry brigade participate in a military drill on sleds pulled by reindeer near the settlement of Lovozero outside Murmansk, Russia. Lev Fedoseyev/Ministry of Defence of the Russian Federation/Reuters
Market Closes for January 30^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
82%
The percent earnings are forecast to fall  at S&P 500 energy companies last year, the largest decline of any sector in the index since 2008.
Canada
By Oliver Renick
     (Bloomberg) — Canadian stocks fell the most this year as energy shares led declines in every sector and commodity prices dropped. At the same time, a shooting at a Mosque in Quebec left at least six dead as police arrested two suspects.
     The S&P/TSX Composite Index lost 1.2 percent to 15,397.37 by 10:43 a.m. in Toronto, after adding after eking out the fourth straight weekly gain in mixed trading last week. The benchmark is down 1.6 percent after setting an all-time high on Jan. 25.
* All 11 groups in benchmark gauge lower
* Energy shares down 2% as oil drops 1.1% in second session of declines
* Tech stocks down 1.8% as every company in 12-member index falls; Celestica down 3.2% and DH Corp down 3%
* Raw-materials stocks down the least, declining 0.3% as a Bloomberg Commodity Index drops 0.9% for fourth straight session of losses
* New Gold down 13% for biggest loss in market after cut to underperform at Scotiabank
US
By Oliver Renick
     (Bloomberg) — U.S. stocks fell with global equities, as energy shares declined with the price of crude oil and global criticism mounted against U.S. President Donald Trump’s executive order halting some immigration to the country.
     The S&P 500 Index lost 0.6 percent to 2,280.90 at 4 p.m. in New York, trimming a third monthly advance. The Dow Jones Industrial Average declined 123 points to 19,971.13 while the CBOE Volatility Index jumped the most since November.
* VIX up 12% after four days of declines took the gauge to 10.6, the lowest in more than two years
* Energy shares down 1.8% as crude oil drops 0.9% for second session of losses
* Tech and financial shares down at least 0.8% as S&P banks index drops 1.1% with all 17 members declining
* Trump’s executive order halting immigration from seven predominantly Muslim nations sparked a backlash from world governments to companies, with major international firms saying it threatened to choke the free flow of workers and commerce
* Michael Block, chief global strategist at Rhino Trading Partners, writes: “markets give a somewhat more interested than usual thumbs down to the Trump Administration”
* Investors will also focus on corporate earnings this week, with Apple Inc., Exxon Mobil Corp. and Pfizer Inc. among more than a 100 firms in the S&P 500 scheduled to report results
* About a third of the benchmark’s members have released quarterly figures so far this season, of which three-quarters beat profit estimates and about half topped sales forecasts, according to data compiled by Bloomberg.
* EARNINGS:
** After-market Monday: Leggett & Platt (LEG), UDR (UDR), General Growth Properties (GGP), Principal Financial Group (PFG)
** Pre-market Tuesday: Valero Energy (VLO), Simon Property Group (SPG), Danaher (DHR), Thermo Fisher Scientific (TMO), Aetna (AET), HCA Holdings (HCA), Nucor (NUE), Eli Lilly (LLY), AmerisourceBergen Corp (ABC), Pfizer (PFE), Coach (COH), Harley- Davidson (HOG), Xerox (XRX), Nasdaq (NDAQ), LyondellBasell Industries (LYB), Under Armour (UAA), Ally Financial (ALLY), Sprint (S), Zimmer Biomet Holdings (ZBH), United Parcel Service (UPS), Exxon Mobil (XOM), Mastercard (MA), PACCAR (PCAR)

Have a wonderful evening everyone.

Be magnificent!

There is no master, there is no instructor,
there is no person to tell you what you must do.
Krishnamurti

As ever,

Carolann

The aim of argument, or of discussion, should not be victory, but progress.
                                                                         -Joseph Joubert, 1754-1824

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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
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www.carolannsteinhoff.com