July 15, 2019 Newsletter

Dear Friends,

Tangents:

Birthday: Rembrandt, July 15, 1606

The Storm on the Sea of Galilee
Painting by Rembrandt

Isabella Stewart Gardner Museum
Google Arts & Culture

     Rembrandt was born in Leiden, the Netherlands on this day in 1606.  His full name was Rembrandt Harmenszoon van Rijn.  He was the son of  a miller.  Despite the fact that he came from modest means, he was able to study art and, by age 22,  took his first pupils.  He married Saskia van Uylenburgh, the cousin of a successful art dealer, in 1634.
     Rembrandt’s family life was marked by misfortune.  Between 1635 and 1641 Saskia gave birth to four children but only the last, Titus, survived.  Saskia died in 1642, at the age of 30.  Hendrickje Stoffels, who became Rembrandt’s housekeeper in 1649, eventually became his wife and was the model for many of his pictures.  Despite Rembrandt’s success as an artist, teacher and art dealer, his flamboyant living forced him to declare bankruptcy in 1656.  His beloved Hendrickje died in 1663, and his son Titus, in 1668 at only 27 years of age.  Eleven months later, on October 4, 1669, Rembrandt died in Amsterdam.
PHOTOS OF THE DAY

Two women hold torches in the late evening during a medieval event in Bueckeburg, Germany.
CREDIT: PETER STEFFEN/DPA VIA AP

A passanger in an American classic car watches as the train using new equipment from China rides past, in Havana, Cuba.
CREDIT: AP PHOTO/RAMON ESPINOSA

Chaps and Chappettes during The Grand Flaneur Walk, celebrating 20 years of The Chap Magazine, in London.
CREDIT: JEFF GILBERT FOR THE TELEGRAPH
Market Closes for July 15^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1916, William Boeing incorporated the Pacific Aero Products Co. in Seattle with $100,000 in capital. In 1917, he renamed his firm the Boeing Airplane Co. Boeing later made jet travel an accepted part of everyday life. Today, the aerospace giant has a market value of $206 billion and is the largest component of the Dow industrials. The stock is up 13% for the year despite fallout over its 737 MAX planes after two fatal crashes earlier this year. 
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks advanced for the first time in three sessions, led by technology companies, as their U.S. counterparts drove the Nasdaq-100 Index to a fresh record.The S&P/TSX Composite Index rose 0.1% to 16,510 in Toronto. Information technology shares rose the most among 11 industry groups, gaining 2.2%. Shopify Inc. advanced 4.6%. Health-care also gained, with pot stocks advancing after Organigram Holdings Inc. reported earnings.
In other moves:
Stocks
* MediPharm Labs Corp. jumped 8.3%
* Peyto Exploration & Development Corp. gained 6.2%
* NuVista Energy Ltd. advanced 6.1%
* Cameco Corp. lost 7.8% after arbitration ruling
* Flowr Corp. dropped 7.1%
* Precision Drilling Corp. fell 5.9%
Commodities
* Western Canada Select crude oil traded at a $10.50 discount to WTI
* Gold spot price about flat to $1,415 an ounce
FX/Bonds
* The Canadian dollar fell 0.2% to C$1.3051 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.587%
US
By Rita Nazareth and Vildana Hajric
     (Bloomberg) — A technology rally drove U.S stocks to fresh records at the start of a  busy week for corporate earnings, economic data and Federal Reserve speakers. Treasuries climbed. Gains in tech shares outweighed losses in energy and financial companies in the S&P 500 Index. Both the Nasdaq-100 Index and the Dow Jones Industrial Average also closed at all-time highs. Citigroup Inc., the first big U.S. bank to report results, was little changed. After last week’s surge, Treasury 10-year yields dropped as investors bought bonds at cheaper prices. Oil fell below $60 a barrel. Investors will sift through speeches by Fed officials this week after Chairman Jerome Powell left it all but certain that the central bank will reduce rates this month for the first time in a decade. As the July 30-31 meeting nears, the debate now is how deep they will cut and what will they do afterward. Key data points such as U.S. retail sales may provide more clarity as the earnings season gets under way.
     “It’s very, very well advertised that earnings are expected to come out weaker,” said Jim Caron, managing director of global fixed-income at Morgan Stanley Investment Management. “If we connect this with the Fed and say, ‘OK, if the Fed is doing these insurance cuts to really stave off any real significant slowdown, then hey, you know what, then maybe earnings in the fourth quarter might be pretty good.”’ Profits are expected to drop from last year, making this season “the worst of times,” according to Bloomberg Intelligence analyst Gina Martin Adams. Eight of 11 sectors are forecast to post declines in per-share earnings growth, with analysts and companies cutting second-quarter views “to the bone,” she said.
     Investors also assessed data showing that China’s economy slowed to the weakest pace since quarterly data began in 1992 amid the ongoing trade standoff with the U.S., while monthly indicators provided signs that a stabilization is emerging. Elsewhere, Bitcoin trimmed losses, following another weekend sell-off that saw some digital tokens plunge by more than 20%. Treasury Secretary Steven Mnuchin said Monday that the Trump administration has “very serious concerns” about Facebook Inc.’s proposed cryptocurrency Libra.
Here are some key events coming up:
* JPMorgan Chase & Co., Bank of America Corp., Goldman Sachs Group Inc. and Taiwan Semiconductor are among companies due to report results this week.
* U.S. June retail sales, due Tuesday, are expected to rise from the prior month.
* Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.

These are the main moves in markets:
Stocks
* The S&P 500 rose less than 0.1% to 3,014.30 at 4 p.m. in New York.
* The Dow Jones Industrial Average gained 0.1% while the Nasdaq-100 Index added 0.3%.
* The Stoxx Europe 600 Index gained 0.2%.
* The MSCI Asia Pacific Index climbed 0.3%.
Currencies
* The Bloomberg Dollar Spot Index increased 0.1% to 1,191.71.
* The euro fell 0.1% to $1.1257, the biggest fall in more than a week.
* The Japanese yen was unchanged at 107.91 per dollar, the strongest in more than a week.
Bonds
* The yield on 10-year Treasuries declined four basis points to 2.09%, the biggest decrease in almost two weeks.
* Germany’s 10-year yield decreased four basis points to -0.25%, the first retreat in a week and the largest tumble in almost four weeks.
* Britain’s 10-year yield declined three basis points to 0.801%.
Commodities
* The Bloomberg Commodity Index dipped 0.6%.
* West Texas Intermediate crude dipped 1.1% to $59.58 a barrel.
–With assistance from Adam Haigh, Joanna Ossinger, Samuel
Potter, Todd White, Laura Curtis and Sarah Ponczek.
Have a great evening.

Be magnificent!
As ever,

Carolann

Diligence is the mother of good fortune.
       -Miguel De Cervantes, 1547-1616

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