May 16, 2019 Newsletter

Dear Friends,

Tangents:
1961 – US President John F. Kennedy starts 3-day visit to Ottawa.

10 reasons why ‘Dief the Chief’ and JFK hated each other >> Go to article »
PHOTOS OF THE DAY

Visitors take a look of the newly launched OnePlus 7 and OnePlus Pro series smartphones at the experience centre in Bangalore, India
CREDIT: JAGADEESH HV/EPA/REX

Betty Bromage, celebrates her 90^th birthday in spectacular style by taking on a Zip wire across a Welsh Quarry.
CREDIT: GARY LAWSON/CAG PHOTOGRAPHY

Claude Monet’s painting titled “Meules.”, one of Monet’s iconic paintings of haystacks, has fetched a record $110.7 million at an auction in New York.
CREDIT: SOTHEBY’S

Final touches are added to couture floral displays in Covent Garden, as the area launches Covent Garden in Bloom, hosting Fleurs de Villes an immersive display.
CREDIT: JEFF MOORE

Market Closes for May 16^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Outflows from Chinese equities totaled more than $2.5 billion last week amid the recent flare up in U.S.-China trade tensions, averaging around $600 million net outflows daily, according to the Institute of International Finance’s daily capital flows tracker. Outflows have continued this week, with more than $1.5 billion on Tuesday
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks rose for a third consecutive day, the longest streak of gains in a month, with Shopify among the standouts as it rallied to a record. The S&P/TSX Composite Index gained 0.8% to 16,443.86 in Toronto.
     All 11 industry groups except materials climbed. Technology stocks rose the most. Gold miner Iamgold outperformed its peers, gaining 9.4% after Bloomberg reported that company exploring sale. Air Canada also advanced, climbing 3.9% after it said that company is in talks to buy Transat Airline for $387 Million The market was lifted by a report showing Canadian factory sales rose by the fastest in almost a year in March, adding to evidence the economy is emerging from a recent weak patch. Manufacturing sales climbed 2.1% from the prior month, the most since May 2018, Statistics Canada reported Thursday.
     In other moves:
Stocks
* Bombardier Inc gained 7.5% after Airbus CEO said looking at options for Belfast A220 wing factor
* Boardwalk REIT rallied 7.2% after first quarter FFO per unit beat estimates
* ATS rose 4.9% after fourth quarter revenue beat the highest estimate
* Birchcliff Energy climbed 7.2% despite first quarter EPS missing the lowest estimate
* Gold miners such as Torex Gold, Eldorado Gold, Centerra Gold were among some of the biggest losers after the metal fell as U.S. home starts rose, jobless claims declined
Ratings
* BMO CN: Bank of Montreal Reinstated Underperform at Credit Suisse
* BNS CN: Bank of Nova Scotia Reinstated Outperform at Credit Suisse
* CM CN: CIBC Reinstated at Credit Suisse With Neutral; PT C$116
* CWB CN: Canadian Western Bank Reinstated Neutral at Credit Suisse
* LB CN: Laurentian Bank of Canada Reinstated at Credit Suisse With Underperform; PT C$41
* NA CN: National Bank of Canada Reinstated Neutral at Credit Suisse
* NRI CN: Nuvo Pharmaceuticals Cut to Hold at Bloom Burton & Co; PT C$2.50
* PDL CN: North American Palladium Rated New Outperform at BMO; PT C$15.50
* RY CN: Royal Bank of Canada Reinstated Neutral at Credit Suisse
* TD CN: TD Bank Reinstated at Credit Suisse With Outperform; PT C$81
* TRZ CN: Transat AT Upgraded to Neutral at CIBC; PT C$13
Commodities
* Western Canada Select crude oil traded at a $13 discount to WTI
* Gold spot prices fell 0.8% to 1,286.68 an ounce
FX/Bonds
* The Canadian dollar fell 0.2% to C$1.3461 per U.S. dollar
* The Canada 10-year government bond yield climbed to 1.679%
US
By Randall Jensen and Vildana Hajric
     (Bloomberg) — U.S. stocks rose and Treasuries slumped anew as the rebound in risk assets from the trade-fomented sell-off continued.
     The S&P 500 capped a third day of gains, but faded into the close to finish just above its average price over the last 50 sessions. Solid earnings from Cisco Systems Inc. and Walmart Inc., along with strong housing data, boosted shares. However, trade tensions remained in the background as the Trump administration threatened to blacklist China’s Huawei Technologies Co. and Walmart warned tariffs would lead to higher consumer prices. The 10-year yield topped 2.39% and the dollar strengthened.
     “This has become a pattern where you get a big aggressive statement from the administration that might impact trade and then the market reacts aggressively as it did on Monday and then it seems to back off,” Chicago-based Susan Schmidt, head of U.S. equities at Aviva Investors, said in an interview. “Business is still doing well. I think if the market can stay focused on the facts and the data, then I think the market will hold.”
     Strong economic data and earnings, along with hints from the Trump administration that it may be willing to compromise on trade has helped stocks bounce back from the battering they took when the tariff battle with China flared last week. But the headlines have come fast and furiously, most recently President Donald Trump signed an order that’s expected to restrict Chinese telecommunications firms from selling in the U.S.
     Elsewhere, the pound dropped for a ninth day versus the euro — the longest losing streak since 2000 — as U.K. Prime Minister Theresa May faced a new threat to oust her. Emerging market shares fell for the third time in four days.
     Here are the main market moves:
Stocks
* The S&P 500 Index rose 0.9% as of 4 p.m. New York time.
* The Nasdaq 100 gained 8%.
* The Stoxx Europe 600 Index advanced 1.3%.
* The U.K.’s FTSE 100 Index gained 0.8%.
* The MSCI Emerging Market Index dipped 0.6%.
* The MSCI Asia Pacific Index decreased 0.5%.
Currencies
* The Bloomberg Dollar Spot Index gained 0.3%.
* The euro dipped 0.2% to $1.1174.
* The British pound decreased 0.4% to $1.2795, reaching the weakest in three months.
* The Japanese yen fell 0.2% to 109.83 per dollar.
Bonds
* The yield on 10-year Treasuries climbed two basis points to 2.40%.
* Britain’s 10-year yield rose one basis point to 1.074%.
* Germany’s 10-year yield gained less than one basis point to -0.10%.
Commodities
* West Texas Intermediate crude increased 1.7% to $63.08 a barrel.
* Gold fell 0.8% to $1,286.80 an ounce.
–With assistance from Adam Haigh, Todd White and Sarah Ponczek.

Have a great night.

Be magnificent.

As ever,

Carolann

The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.

                                                                       -Bertrand Russell, 1872-1970

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