May 14, 2019 Newsletter

Dear Friends,

Tangents:
On May 14, 1948, the independent state of Israel was proclaimed as British rule in Palestine came to an end.
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PHOTOS OF THE DAY

The sun setting over Ely Cathedral in Cambridgeshire, UK. Hotter and drier weather is forecast for this week.    CREDIT: ANDREW SHARPE/GEOFF ROBINSON PHOTOGRAPHY

A woman stands beneath a spectacular sandstone arch near the small town of Page in Arizona, USA. The 30 meter tall arch was sculpted by wind and rain over the ages which eroded the soft sandstone.     CREDIT: ANDREI STOICA/SOLENT NEWS & PHOTO AGENCY

Stunning images have captured a picture – perfect spring evening as fox cubs play amongst a blanket of bluebells. The adorable cubs, thoughts to be about four weeks old, were snapped play-fighting and frolicking in the flowers near Stourbridge, West Midlands, UK.     CREDIT: IAN HOWELLS/MERCURY PRESS
Market Closes for May 14^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1997, Amazon.com went public on the Nasdaq, offering 3 million shares at an initial price of $18 per share. Last summer, the e-commerce giant became the second U.S. company to hit $1 trillion in market value on an intraday basis, and today it is valued at $897 billion with a share price of $1,822.68 even after recent declines. 
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks rebounded along with U.S. equities after President Trump moved to reassure markets that he’ll reach a trade deal with China. Pot stocks were among the best performers, followed by industrials.
     The S&P/TSX Composite Index climbed 0.6% on Tuesday to 16,285 in Toronto, ending a three-day slide. Medical cannabis maker CannTrust Holdings was the best performing stock after posting record revenue during the first quarter. Cronos was the second best after it signed a C$30 million cannabis concentrate supply pact with MediPharm.
     In other moves:
Stocks
* CannTrust Holdings rose +6.6%, while Cronos Group climbed 6.2%
* Birchcliff Energy advanced 6%, heading into its first quarter earnings on May 15
* Lundin Mining gained 5.4%, while gold miner Iamgold fell 3.9% and New Gold was down 3.7%
* Labrador Iron Ore gained 5.1% despite 1Q earnings missing the average analyst estimate
Ratings
* CNE CN: Canacol Energy Rated New Corporate at Edison; PT C$6.28
* SIS CN: Savaria Rated New Buy at Eight Capital; PT C$15
* VLE CN: Valeura Energy Rated New Buy at Panmure Gordon
* WJA CN: WestJet Airlines Downgraded to Sell at Veritas; PT C$31
Commodities
* Western Canada Select crude oil traded at a $14.30 discount to WTI
* Gold spot prices fell 0.2% to $1,297.25 an ounce
FX/Bonds
* The Canadian dollar rose 0.1% to C$1.3462 per U.S. dollar
* The Canada 10-year government bond yield gained to 1.692%
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — U.S. stocks rebounded as President Donald Trump moved to reassure markets that he’ll clinch a trade deal with China. The dollar rose and Treasuries fell.
     The S&P 500 rose for the second time in three sessions after Trump said he’s talking with China. The benchmark is still down around 4% since the president escalated the trade war on May 5, and Tuesday’s rally faded into the close. Battered tech shares led the advance as Apple Inc. and Nvidia Corp. bounced back from their biggest one-day declines since January. Heavyweight exporters Caterpillar Inc. and Boeing Co. also reversed a portion of Monday’s losses.
     The dollar advanced for a second day against major peers, including havens such as the Japanese yen and the Swiss franc. The offshore yuan — a key risk indicator due to concern China will use it to retaliate against U.S. tariffs — stabilized after a six-day decline. Ten-year Treasury yields edged higher to 2.41%. Commodities targeted by Chinese tariffs — including soybean and cotton futures — also rebounded. West Texas crude rose above $61 a barrel.
     “Investors are looking for opportunities to get into this market, and so far in 2019 there really haven’t been any ‘buy the dip’ opportunities other than last week,” Ryan Nauman, market strategist at Informa Financial Intelligence, said by phone. “And you’re also seeing President Trump confirmed a meeting with President Xi during next month’s G-20 summit, which provides some optimism that despite the increase in tariffs, negotiations are still ongoing.”
     Signs emerged Tuesday Trump had pressed the trade battle far enough. The president sprinkled his criticisms of China over the last 48 hours with enough signals that negotiations haven’t completely broken down that traders rushed back into the beaten down market to find bargains. But the rally remains tenuous as the White House announced it was prepping tariffs on the remaining $300 billion of Chinese imports, and economists warned the new penalties will eventually weigh heavily on the American economy.
Here are some notable events coming up this week:
* Earnings this week include Alibaba, Tencent, Cisco, Nvidia.
* Kansas City Fed President Esther George and Richmond Fed President Thomas Barkin make appearances.
* China industrial production and retail sales are slated for Wednesday, the same day as U.S. retail sales and industrial production.
* Bank of Indonesia has an interest rate decision on Thursday.
* Australian unemployment is out on Thursday.
And here are the main market moves:
Stocks
* The S&P 500 Index rose 0.8% as of 4 p.m. New York time.
* The Nasdaq Composite Index advanced 1.3%, while the Dow Jones Industrial Average added 0.9%. 
* The Stoxx Europe 600 Index gained 1%.
* The MSCI Emerging Market Index decreased 0.2%.
* The MSCI Asia Pacific Index sank 0.8%.
Currencies
* The Bloomberg Dollar Spot Index gained 0.2% to the highest in more than a week.
* The euro fell 0.1% to $1.1214.
* The British pound dipped 0.2% to $1.2927.
* The Japanese yen decreased 0.3% to 109.66 per dollar.
Bonds
* The yield on 10-year Treasuries rose one basis point to 2.41%.
* Germany’s 10-year yield was unchanged at -0.07%.
* Britain’s 10-year yield was little changed at 1.105%.
Commodities
* West Texas Intermediate crude climbed 1.1% to $61.70 a barrel.
* Gold fell 0.3% to $1,297.70 an ounce.
–With assistance from Yakob Peterseil.
Have a great night.

Be magnificent!
As ever,

Carolann

The secret of the man who is universally interesting is

that he is universally interested.

                       -William Dean Howells, 1837-1920

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