July 25, 2019 Newsletter

Dear Friends,

Tangents:

Lawmakers questioning Robert Mueller on Wednesday tried mightily to decipher what may become the most infamous double negative in U.S. history: “If we had had confidence … that the president clearly did not commit obstruction of justice, we would so state. However, we are unable to reach that judgment.” Double negatives — commonly defined as a negative statement containing two negative elements — have long been abhorred by grammarians.

Nevertheless, they are a popular rhetorical device: Geoffrey Chaucer used them to humorous effect, and William Shakespeare slipped a triple negative into “Twelfth Night.” In “Another Brick in the Wall,” Pink Floyd sang, “We don’t need no education”; “Weird Al” Yankovic shamed double negative users in his parody song “Word Crimes”; and Bart Simpson vowed on a chalkboard that he “won’t not use no double negatives.

Other languages — including Hebrew, Persian, Polish and Russian — don’t have a problem with the double negative. The French use them for emphasis, and in Chinese they make an even stronger affirmative.
But George Orwell railed against their use in political speech, which he said can “make lies sound truthful and murder respectable.” -from The New York Times.
Archaeologists discover proof of the 1099 siege of Jerusalem. (h/t Scott Kominers)

PHOTOS OF THE DAY

A dancer performs during a ceremony marking one year before the start of the Tokyo 2020 Olympic Games in Tokyo.
CREDIT: BEHROUZ MEHRI/ AP

Incredible Lightning strike at the 17^th century Chesterton Windmill near Leamington Spa, Warks.
CREDIT: CHAD GORDON HIGGINS/ SWNS.COM

Hot sunny weather A wonderful sunset was observed on Portobello beach, Edinburgh, Scotland last night.
CREDIT: TOM DUFFIN/ SOLENT NEWS

Carpathian spruce forest is shrouded in mist in the morning, Zakarpattia Region, western Ukraine.
CREDIT: UKRINFORM/ BARCROFT  MEDIA

Market Closes for July 25th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Money is better than poverty, if only for financial reasons. -Woody Allan.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks declined after three days of gains, hurt by materials and energy stocks. Consumer staples, tech and industrials were the best sectors within the S&P/TSX Composite Index. The S&P/TSX fell 0.7% to 16,488 on Thursday in Toronto. Metals and mining stocks were the worst performers as gold and silver prices tumbled after ECB president Mario Draghi said that he sees a low risk of a recession.
Cameco and Husky Energy were among the underperformers within the energy sector, after reporting earnings. Meanwhile, Canada’s small and mid-size firms, which account for the majority of the nation’s businesses, were less optimistic in July compared with the previous month, according to a monthly survey from the Canadian Federation of Independent Business.
Stocks
* Mullen Group rose 8.6% after second quarter adjusted EPS beats estimates
* FirstService Corp climbed 2.8%. The company beat the highest adjusted EPS estimate when it reported second quarter earnings on July 24
* Aritzia Inc was up 2.8%
* Cameco fell 7.7%
* OceanaGold was among the chief underperformers as gold fell and after a ruling on its Didipio operations
* Celestica fell 1.5% after its third quarter revenue forecast missed estimates
Ratings
* BEP-U CN: Brookfield Renewable Partners Cut to Neutral at Credit Suisse
* GSV CN: Gold Standard Ventures Rated New Buy at B Riley FBR, Inc.
* TIH CN: Toromont Industries Raised to Outperform at National Bank
Commodities
* Western Canada Select crude oil traded at a $14.50 discount to WTI
* Gold spot price fell 0.8% to $1,414.40 an ounce
FX/Bonds
* The Canadian dollar fell about 0.1% to C$1.3160 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.461%
US
By Vildana Hajric and Olivia Rinaldi
(Bloomberg) — U.S. stocks fell from record highs amid a torrent of corporate results, while the euro swung between gains and losses and European bond yields climbed from all time lows after Mario Draghi didn’t give markets more of a dovish signal. All 11 industry sectors in the S&P 500 closed lower a day after the benchmark index closed at an all-time high. The Dow Jones Industrial Average slumped to the lowest two weeks as investors digested a flood of earnings. 3M initially advanced after beating estimates before turning lower, while Tesla plunged on weak results. A Federal Trade Commission probe weighed on Facebook, overshadowing impressive results. After the close or regular trading, Amazon fell after posting lower-than- forecast earnings and Alphabet exceeded revenue estimates.
“Stocks’ weakness, despite today’s ECB dovishness, calls into question how much upside equities have left even if the Fed cuts rates as expected next week,” said Alec Young, managing director of global markets research at FTSE Russell in New York. “With global leading economic indicators still weak, investors seem increasingly unwilling to keep buying without greater signs of improving fundamentals.” The euro initially plunged versus the dollar after ECB President Draghi left rates unchanged but said a “significant degree” of monetary stimulus is needed and the outlook is “getting worse and worse.” It then spiked before trading little changed.
“For the markets, it continues to be this tug-of-war between continued policy stimulus and whether that’s going to be enough to head off the slowing trend in global growth,” said Ed Campbell, portfolio manager and managing director at QMA. Earnings have been broadly positive for stocks, but worries still linger over trade and a slowing global economy. Oil was little changed as declining U.S. crude stockpiles and threats to Persian Gulf exports mingled with concerns that slower economic growth will stifle demand. Most major indexes in Asia advanced, though Korean stocks declined for a second day.
Turkey’s lira fluctuated after the central bank cut its key rate by the most on record. Australia’s dollar hit its low of the session and benchmark bond yields touched a record low after Reserve Bank Governor Philip Lowe said he was prepared to cut interest rates again if needed.
Here are some key events coming up:
* Earnings season rolls on with companies including McDonald’s still to report this week.
* U.S. gross domestic product figures due Friday may show business investment posted the first decline in three years.

These are the main moves in markets:

Stocks
* The S&P 500 Index decreased 0.5% to 3,003.70 as of 4:03 p.m. New York time.
* The Dow Jones Industrial Average sank 0.5% to 27,141.05, the lowest in two weeks on the biggest dip in a month.
* The Nasdaq Composite Index decreased 1% to 8,238.54, the largest decrease in a month.
* The Stoxx Europe 600 Index decreased 0.6% to 389.52, the first retreat in a week and the biggest dip in almost three weeks.
* The U.K.’s FTSE 100 Index dipped 0.2% to 7,489.05, the lowest in almost four weeks.
* Japan’s Nikkei 225 Stock Average gained 0.2% to 21,756.55, the highest in more than 11 weeks.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2% to 1,200.75, the highest in more than five weeks.
* The euro was little changed at $1.1144, the first advance in a week.
* The Japanese yen decreased 0.5% to 108.71 per dollar, the weakest in more than two weeks on the largest dip in almost three weeks.
* The British pound decreased 0.3% to $1.2451.
* The Swiss franc dipped 0.6% to $0.991, the weakest in more than two weeks on the largest dip in almost three weeks.
* The onshore yuan was little changed at 6.872 per dollar.
Bonds
* The yield on 10-year Treasuries gained three basis points to 2.07%.
* The yield on two-year Treasuries climbed three basis points to 1.85%, the highest in two weeks.
* Germany’s 10-year yield rose two basis points to -0.36%, the first advance in more than a week and the largest rise in two weeks.
* Britain’s 10-year yield gained three basis points to 0.71%, the first advance in a week and the biggest rise in two weeks.
Commodities
* Gold declined 0.8% to $1,414.24 an ounce, the weakest in more than a week.
* West Texas Intermediate crude was little changed at $55.89 a barrel.

Have a great night.

Be magnificent!
As ever,

Carolann

You have to have confidence in your ability,
and then be tough enough to follow through.
                         -Rosalynn Carter, b. 1927
             

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