May 25, 2017 Newsletter

Dear Friends,

Tangents:
Better than humans? Google’s (GOOG, GOOGL) artificial intelligence program, AlphaGo, has beaten the world’s best Go player Ke Jie for a second time, taking a 2-0 lead in a best of three series. The victory – which many thought would take decades to achieve – comes after the AI program bested South Korean Go professional Lee Sedol in a similar exhibition match last year.

Gary and I were in Seattle for the  opera  last weekend  ( Mozart’s Magic Flute – a fabulous production) and in addition, I wanted to see the Amazon store in University Village.   I marvel at the audacity of Jeff Bezos, who, after putting many booksellers out of business, is now opening book stores – (a new one opened yesterday in NYC).  Anyway, the Seattle store is amazing – the books are all displayed with front covers facing the customer.   Upon entering the store, a large sign points to one of the displays informing, “The One Hundred Books Every Person Should Read in their Lifetime.”  Perusing the display, I would have to agree – brilliant selection.  I asked one of the staff to demonstrate Alexa for us.  There are actually  three models of Echo – Alexa is the software.  First she said to the largest Echo unit, “Alexa, play some classic rock.”   Alexa immediately obeyed streaming music from Amazon (though I was informed that you can stream from any source).  The sound was excellent.  The salesgirl then led us to the medium – size version of Echo, and commanded, “Alexa, tell us a joke.”  Alexa told us a very funny joke.   We were both in awe.
PHOTOS OF THE DAY

A meadow of Campion wild flowers are seen under the impressive backdrop of Bamburg Castle on the north east coast of England.
CREDIT: PAUL KINGSTON/NNP

Queen Elizabeth and Prince Philip attend a service to mark the Centenary of the Order of the British Empire at St. Paul’s Cathedral in London.
CREDIT: TOBY MELVILLE/REUTES

Guilhem Fonseca of Portugal competes during the 2017 ISA World Surfing Games in France.
CREDIT: FRANICK FIFE/AFP/GETTY IMAGES.
The happiest people I know are always evaluating and improving themselves.  The unhappy people are usually evaluating and judging others.
Market Closes for May 25^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1931, the New York Stock Exchange begins regularly reporting short sales.

Number of the Day
13.6%
With nearly all companies in the S&P 500 having reported results, aggregate earnings for the first quarter are on track to grow 13.6% from the year-earlier period, according to FactSet.

On May 25, 2006, Kenneth L. Lay and Jeffrey K. Skilling, the chief executives who guided Enron through its spectacular rise and even more stunning fall, were found guilty of fraud and conspiracy.

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Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed in the red as gains in industrials and financials were offset by a big drop in energy shares.
     The S&P/TSX Composite Index fell 9 points or 0.1 percent to 15,410.73. Energy shares dropped 1.6 percent as West Texas Intermediate crude prices plunged 5.3 percent, sinking from a five-week high after OPEC extended production cuts but didn’t deepen them.
     On the other side of the ledger, industrial shares gained 1.3 percent, led by a 5.7 percent jump in shares of Westshore Terminals Investment Corp., which were bolstered by confirmation of a minority government in British Columbia. The financials index added 0.3 percent on strong second-quarter results from Toronto-Dominion Bank and Royal Bank of Canada.
     In other moves:
* Tembec Inc. jumped 41 percent. The lumber and paper producer is being acquired by Rayonier Advanced Materials Inc. for about $300 million
* Aimia Inc. gained 18 percent after CEO David Johnston said the market has “overreacted” to Air Canada’s split with the loyalty- program operator. Shares are down 72 percent since the announcement earlier this month
* Manulife Financial Corp. added 0.6 percent. CEO Donald Guloien is retiring and will be replaced by head of Asia operations Roy Gori.
US
By Samuel Potter and Jeremy Herron
     (Bloomberg) — U.S. stocks rose to fresh records and the dollar strengthened as retailer results boosted confidence in the American consumers’ ability to jump start economic growth. Oil sank from a five-week high after OPEC extended plans to limit production without deepening the cuts.
     The S&P 500 Index pushed its longest rally since February to six days as Best Buy Co. and PVH Corp. results topped estimates and the Bloomberg Consumer Comfort Index signaled optimism among U.S. shoppers. The dollar steadied in the wake of Federal Reserve minutes showing officials unperturbed by recent signs of slower economic growth. U.S. crude lost more than 4 percent to slide below $50. China’s yuan strengthened the most in four months.    
     The latest earnings reports bolstered a retail group that’s been hit by struggles at mall-based stores and signs that wages haven’t been rising fast enough to spark a meaningful surge in spending. They added to risk appetite after Fed policy makers indicated recent weakness in growth is transitory. The bullish sentiment was limited among stock investors in Europe, where some markets were closed today for the Ascension holiday.
     And here are the main movers:
     Stocks
* The S&P 500 rose 0.4 percent to a record 2,415 at 4 p.m. in New York. It’s rallied more than 2.5 percent in the past six sessions.
* The Nasdaq Composite and Nasdaq 100 indexes also closed at records, while the Dow Jones Industrial Average added 0.4 percent to end 0.2 percent short of its March 1 high.
* Best Buy surged 22 percent, the most since 2001, and PVH jumped 4.9 percent to pace gains in retailers. Railroad operators also rallied, leading transportation shares higher.
* The Dow Jones Industrial Average climbed to 21,085 as it bears down on its March 1 closing record.
* The Stoxx Europe 600 ended little changed, while emerging- market equities rallied 0.7 percent.
     Commodities
* West Texas Intermediate crude sank 4.8 percent to settle at $48.90 a barrel in New York, after touching the highest level in more than a month.
* Gold futures rose 0.3 percent to $1,259.70 an ounce.
     Currencies
* The Bloomberg Dollar Spot Index edged higher after earlier touching the lowest level since November.
* The euro was virtually unchanged at $1.1218. The British pound fell 0.1 percent to $1.2960.
     Bonds
* The yield on 10-year Treasury notes was little changed at 2.25 percent after losing three basis points on Wednesday.
* German 10-year yields fell four basis points to 0.362 percent.
* Japan’s sovereign yield curve bear-steepened after the nation’s auction of 40-year bond sale met weaker-than-expected demand.

Have a wonderful evening everyone.

Be magnificent!

It is necessary that this be the aim of our entire life.
In all of our thoughts and actions,
we must be conscious of the infinite.
Rabindranath Tagore

As always,

Carolann

Some beautiful paths can’t be discovered without getting lost.
                                                                     -Erol Ozan

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
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