May 4, 2017 Newsletter

Dear Friends,

Tangents:

Carolann is away at an Investment Conference for a few days, I will be writing the newsletter of her behalf.

PHOTOS OF THE DAY

People watch a light display during activities to mark ‘May the 4th,’ Star Wars Day, at Gardens by the Bay in Singapore on Thursday. Edgar Su/Reuters

A bird feeds it’s chick at a park in Beijing on Thursday. Reuters
Market Closes for May 4th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks posted a triple-digit decline as a widespread retreat in commodity prices weighed heavily on energy and materials stocks.
     The S&P/TSX Composite Index fell 146 points or 0.9 percent to 15,396.70, its lowest level in more than six weeks. Energy stocks lost 2.5 percent as West Texas Intermediate crude tumbled 5 percent to $45.44 a barrel amid growing signs that OPEC cuts have failed to eliminate a surplus of crude. Baytex Energy Corp. fell 6.5 percent and Enerplus Corp. lost 6 percent.
     The materials index fell 2.3 percent as weaker-than- forecast manufacturing data out of China weighed on base metal prices for a second day. Precious metal prices also fell, with Asanko Gold Inc., First Majestic Silver Corp., Silver Standard Resources Inc. and Yamana Gold Inc. all down 8 percent or more.
     In other moves:
* The volatility continued at Home Capital Group Inc. The alternative mortgage lender lost 12 percent as regulators began a series of hearings into allegations it misled investors about its mortgage book
* Uni-Select Inc. tumbled 11 percent after its first-quarter sales missed the lowest analyst estimate
* TransAlta Renewables Inc. fell 5.6 percent following a downgrade at TD Securities
* Empire Co. Ltd. gained 4.2 percent. The grocery retailer plans to deliver C$500 million in cost savings by the end of fiscal 2020
US
By Oliver Renick
     (Bloomberg) — U.S. stocks were little changed, with financial stocks offsetting losses in telecom and energy shares as the price of crude oil fell.
     The S&P 500 Index lost less than 0.1 percent to 2,389.52 at 4 p.m. in New York. The benchmark hasn’t posted gains or losses exceeding 0.2 percent for seven straight sessions, and has struggled to top a record last seen on March 1. The Dow Jones Industrial Average lost 6 points to 20,951.47 Thursday.
* Russell 2000 down 0.2% after opening higher
* Financial stocks end 0.2% higher after adding as much as 1% in early trading
* Energy shares lose 1.9% with oil down 5% for third loss this week
* Telecom shares down 1.1% as real estate stocks reverse earlier losses to edge higher; 10-year Treasury yield up 3 bps
* S&P 500 volume 12% higher than 30-day average
** Volume movers: Viacom, General Mills, Scripps, Willis Towers Watson and Kraft Heinz all trading with volume at least 5x 30- day average
* VIX up to 11
** Volatility movers: Kimco Realty, Vertex Pharma, Time Warner, Digital Realty and Rockwell Automation have highest put/call volume ratio in S&P 500
* Facebook down 0.6% after saying it expects revenue growth to slow “meaningfully” after it stops increasing the frequency of marketing spots in the news feed later this year
* POLITICS:
** House Republicans mustered just enough votes to pass their health-care bill Thursday, salvaging what at times appeared to be a doomed mission to repeal and partially replace Obamacare under intense pressure from President Donald Trump to produce legislative accomplishments
** The 217-213 vote sends the American Health Care Act to the Senate, where it has little chance of being passed in its current form
* ECONOMY:
** Bloomberg Consumer Comfort: consumer confidence last week held close to the highest level in more than 15 years as Americans felt a little better about their finances and whether it’s a good time to spend
** March durable goods orders rise 0.9%, compared with 0.7% estimate
** U.S. worker productivity declined in the first quarter by the most in a year as growth in the world’s largest economy weakened
** Filings for U.S. unemployment benefits dropped more than forecast last week, consistent with a robust labor market, a Labor Department report showed Thursday
* EARNINGS:
** Of the firms that have already reported, 78% beat profit forecasts and 63% topped sales projections, data compiled by Bloomberg show
** After-market Thursday: CBS Corp (CBS), PerkinElmer Inc (PKI), Marathon Oil Corp (MRO), Motorola Solutions Inc (MSI), Monster Beverage Corp (MNST), Consolidated Edison Inc (ED), Stericycle Inc (SRCL), Activision Blizzard Inc (ATVI)
** Pre-market Friday: Moody’s Corp (MCO), Welltower Inc (HCN), Cognizant Technology Solutions Corp (CTSH), CenterPoint Energy Inc (CNP), Cigna Corp (CI), Ameren Corp (AEE), Dentsply Sirona Inc (XRAY), Berkshire Hathaway Inc (BRK/A)

Have a wonderful evening everyone.

Be magnificent!

 “Keep your eyes on the stars and your feet on the ground.” —Theodore Roosevelt

As ever,

Karen

“When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one that has opened for us.” – Alexander Graham Bell

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
(C): 250.881.0801
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www.carolannsteinhoff.com