May 2, 2019 Newsletter

Dear Friends,
Tangents:
The master died 500 years ago today
Leonardo da Vinci packed in a lot during his 67 years. Ever wonder what he was up to when he was your age? Well, wonder no more. -from CNN.

As a well spent day brings happy sleep, so a life well used brings a happy death. – Leonardo Da Vinci, 1452-1519.

On May 2, 1945, the Soviet Union announced the fall of Berlin and the Allies announced the surrender of Nazi troops in Italy and parts of Austria.  Go to article »
1611- King James Bible published.
PHOTOS OF THE DAY

Members of the Minster Strays perform their annual ritual of Morris Dancing, at the Temple of the Four Winds at Castle Howard   CREDIT: CHARLOTTE GRAHAM FOR THE TELEGRAPH

Competitors ride their bikes during Stage 4 of the 14^th edition of Titan Desert 2019 mountain biking race between Merzouga and Mssici, in Morocco   FROM THE TELEGRAPH, 05/02/2019

Beltane Fire Society performers celebrate the coming of summer by participating in the Beltane Fire Festival on Calton Hill in Edinburgh, Scotland   CREDIT: JEFF J MITCHELL/GETTY IMAGES

Local people pull a Danjiri along the street to celebrate the of start Japans new imperial era Reiwa in Kobe, Japan   CREDIT: BUDDHIKA WEERASINGHE/GETTY IMAGES
Market Closes for May 2^nd, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1963, Edward C. Johnson II, the head of Fidelity Investments, started a small mutual fund and gave it to his son, Ned, to run. He called it the Magellan Fund. It eventually became the largest mutual fund in the world before losing popularity after investment legend Peter Lynch stepped down in 1990.
Canada
US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — U.S. stocks fell for a second day and Treasury yields climbed in the wake of the Federal Reserve’s latest rate signal, with investors awaiting Friday’s jobs report and news on trade talks. The dollar rose.
The S&P 500 Index moved further away from its record on concern the U.S.-China trade deal remains elusive. Energy shares sank with oil, while Caterpillar Inc. slumped as the announcement of a record dividend underwhelmed investors. Tesla Inc. rallied on plans to raise about $2 billion through debt and stock offerings. Beyond Meat Inc. had the best debut session of any U.S. listing in more than a decade among IPOs that raised at least $200 million.
Read more: Once-Bullish Rates Traders Retreat After Being Bruised by Powell Treasury yields jumped as a wave of bets that the Fed will keep rates on hold longer than expected — before possibly cutting them — was unleashed in derivatives markets. Chairman Jerome Powell’s comments on the “transient” nature of factors keeping inflation below the target prompted a reassessment, with wagers on when a rate cut might happen shifting from December 2019 into 2020. The next clue on the health of the economy will be Friday’s jobs report.
“Many investors had thought that the Fed might cut rates again this year, and that was built into some of the expectations,” said Kate Warne, an investment strategist at Edward Jones. “The Fed’s commentary that inflation was transitory really conveyed that the Fed wasn’t seeing a need to cut rates in response to lower inflation. That’s part of why we saw the sell-off.”
Read more: Even a Strong U.S. Wage Number May Fail to Ignite Inflation
Trade also remained on the radar. Treasury Secretary Steven Mnuchin and other U.S. officials have repeatedly said in recent days that the two sides are making progress with Vice Premier Liu He due to lead a 100-member delegation to Washington next week for what are seen as crucial talks. While people familiar with the discussions say difficult issues remain unresolved, both sides continue to signal they are focused on striking a deal.
Elsewhere, oil tumbled to its lowest in a month despite the promise of tighter sanctions on Iran, as investors saw the U.S., Russia and Saudi Arabia all potentially filling the gap. Britain’s 10-year yield climbed as the Bank of England held rates steady and hinted at future hikes.
Here are some notable events this week:
* Companies reporting earnings include: HSBC and Macquarie.
* Friday brings the U.S. jobs report: non-farm payrolls are projected to rise by about 190,000 in April. Economists expect an unemployment rate of 3.8 percent, with average hourly earnings growth picking up to 3.3 percent.
Canada:
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite fell for the fourth day, dropping 0.6 percent, or 91.87 to 16,410.88 in Toronto. The move was the biggest since falling 1 percent on March 22.
     Today, energy stocks led the market lower, as 7 of 11 sectors lost; 174 of 242 shares fell, while 62 rose. Suncor Energy Inc. contributed the most to the index decline, decreasing 2.6 percent. SNC-Lavalin Group Inc. had the largest drop, falling 13.1 percent.
Insights
* So far this week, the index fell 1.2 percent, heading for the biggest decline since the week ended Dec. 21
* The index advanced 5 percent in the past 52 weeks. The MSCI AC Americas Index gained 9.6 percent in the same period
* The S&P/TSX Composite is 1.6 percent below its 52-week high on April 23, 2019 and 19.1 percent above its low on Dec. 24, 2018
* The S&P/TSX Composite is down 1 percent in the past 5 days and rose 0.9 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.2 on a trailing basis and 15 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12- month basis 
* S&P/TSX Composite’s members have a total market capitalization of C$2.56 trillion
* 30-day price volatility rose to 6.39 percent compared with 6.25 percent in the previous session and the average of 6.43 percent over the past month. 

================================================================
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -54.8239| -1.8| 2/38
Materials | -21.0666| -1.3| 10/37
Financials | -15.7136| -0.3| 5/21
Industrials | -11.2279| -0.6| 8/21
Health Care | -7.0522| -1.9| 1/10
Real Estate | -1.5770| -0.3| 9/15
Communication Services | -0.7234| -0.1| 3/4
Utilities | 0.2790| 0.0| 6/9
Consumer Staples | 1.9350| 0.3| 6/4
Consumer Discretionary | 5.5966| 0.8| 6/11
Information Technology | 12.5081| 1.6| 6/4
================================================================

Top Contributors | Move | % Change | (%) | (%)
================================================================
Suncor Energy | -12.9000| -2.6| 77.7| 11.7
Canadian Natural | | | |
Resources | -9.7860| -2.9| -7.8| 14.7
Enbridge Inc | -9.5320| -1.3| 22.6| 15.3
Open Text | 3.5130| 3.5| 165.3| 20.2
Gildan Activewear | 3.7210| 5.2| 122.9| 24.0
Shopify | 8.9950| 3.9| 81.0| 82.1
================================================================
Biggest Gainers | % Change |Points Move|20D AVG (%)| (%)
================================================================
Ivanhoe Mines | 7.9| 0.9610| 52.5| 43.5
Pason Systems | 6.7| 0.6990| 199.2| 13.6
Gildan Activewear| 5.2| 3.7210| 122.9| 24.0
================================================================
Biggest Losers | % Change | Move | (%) | (%)
================================================================
SNC-Lavalin Group | -13.1| -5.4920| 302.6| -36.9
CannTrust | -12.6| -0.6410| 529.6| 15.4
Cott | -7.7| -1.5240| 365.3| -0.5* The benchmark 10-year bond fell and the yield rose 6.2
basis points to 1.766 percent
* The S&P 500 Index declined 0.2 percent
* Pason Systems Raised to Outperform at National Bank; PT C$23.50
* Gildan Bets on Bangladesh Hub to Expand Apparel Output in Asia
* SNC Reports Unexpected Loss, Accelerates Cost Cuts to Hit Target
* First U.S. Bank-Led Pot Stock Offering Flops With Investors
* Cott First Quarter Revenue 1.4% Above Estimates
* Canadian Shares Fall in Longest Streak This Year, Energy Drags
* Stocks, Bonds Drop as Focus Turn to Trade and Jobs
Markets Wrap

These are some of the main moves in markets:
Stocks
* The S&P 500 lost 0.2 percent to 2,917.52 as of 4 p.m. New York time.
* The Dow Jones Industrial Average fell 0.5 percent, and the Nasdaq-100 slid 0.4 percent.
* The Stoxx Europe 600 Index sank 0.6 percent.
* The MSCI Asia Pacific Index dipped 0.1 percent.
Currencies
* The Bloomberg Dollar Spot Index gained 0.3 percent.
* The euro declined 0.2 percent to $1.1173.
* The British pound fell 0.1 percent to $1.3034.
* The Japanese yen lost 0.1 percent to 111.51 per dollar.
Bonds
* The yield on 10-year Treasuries jumped five basis points to 2.55 percent.
* Britain’s 10-year yield climbed four basis points to 1.187 percent.
* Germany’s 10-year yield increased two basis points to 0.03 percent.
Commodities
* The Bloomberg Commodity Index fell 0.9 percent.
* West Texas Intermediate crude sank 2.8 percent to $61.81 a barrel.
* Gold slid 1 percent to $1,272 an ounce.
–With assistance from Andreea Papuc, Adam Haigh, Namitha Jagadeesh and Samuel Potter.

Have a  great night.

Be magnificent!

As ever,

Carolann

None climbs so high as he who knows not whither he is going.

                                            –Oliver Cromwell, 1599-1658

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