May 5, 2017 Newsletter

Dear Friends,

Tangents:

PHOTOS OF THE DAY

A mother goose swims with her four gosling on the Main River in Frankfurt, Germany, on Wednesday. One gosling fell into the river with no chance to get out again. The mother jumped into the river to help followed by her other three goslings. In the end, the father decided to join as well. Michael Probst/AP

Tea garden workers carry sacks filled with tea leaves at Durgabari Tea Estate on the outskirts of Agartala, India, on Thursday. Jayanta Dey/Reuters
Market Closes for May 5th 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks opened higher, boosted by financial and materials shares amid strong jobs growth in the U.S. and a rebound in commodity prices following three days of declines.
     The S&P/TSX Composite Index added 65 points or 0.4 percent to 15,461.97 at 9:50 a.m. Materials stocks rose 1.1 percent as beaten-down miners regained some ground.
     Financial shares gained 0.2 percent with Canada’s Big 5 banks leading the benchmark to the upside. The U.S. added more jobs than expected in April and the unemployment rate fell to a pre-crisis low of 4.4 percent. By contrast, Canada added fewer than expected jobs and the pace of annual wage increases fell to a record low.
     In other moves:
* Wood-product manufacturer Stella-Jones Inc. jumped 5.7 percent following strong earnings Thursday and an upgrade to buy at Laurentian Bank
* Home Capital Group Inc. rose 9 percent. The troubled mortgage lender is replacing founder Gerald Soloway, accused of misleading investors, with former banker Alan Hibben on its board
* Sierra Wireless Inc. jumped 14 percent after beating first- quarter expectations and forecasting second-quarter revenue ahead of analyst estimates
* Bonavista Energy Corp. gained 8.1 percent. The company reported an unexpected first-quarter profit
* Air Canada gained 5.7 percent. The airline reported a first- quarter adjusted loss that was narrower than analysts expected
US
By Oliver Renick
     (Bloomberg) — U.S. stocks climbed after jobs data showed a rebound in payrolls and energy shares recovered as oil prices remained volatile after dropping below $45 a barrel for the first time since November.
     The S&P 500 added 0.4 percent to 2,399 at 4 p.m. in New York. The benchmark has moved in a tight range this week, despite relatively strong corporate results. The Dow Jones Industrial Average rose 55 points to 21,007.
* Telecom shares up 1.5%; 10-year Treasury yield little changed
* Financial shares down 0.1%
* Energy shares up 1.6% as oil jumps 2%; materials stocks add 1.4%
** Oil earlier dropped 3.9%, below $45 a barrel for the first time since OPEC agreed to cut output in November as U.S. shale confounds the producer group’s attempts to prop up prices that have collapsed about 7.3% this week
* Volume in S&P 500 down 10% from 30-day average
* VIX up to 10.6
* U.S. equity funds saw net outflows of $9.3 billion in the week to May 3, the second-largest outflows in six weeks, BofAML strategists wrote in a note, citing EPFR Global data
* POLITICS:
** Passage of the House’s health-care bill gives the Obamacare repeal effort new life after months of wrangling, but key Republican senators are already pushing it aside to write their own bill with no clear timetable to act
** Trump’s Reciprocal Tax Faces Rough Ride Under World Trade Rules
* ECONOMY:
** U.S. payroll gains rebounded in April by more than forecast (+211,000) and the jobless rate unexpectedly fell to 4.4%, signaling that the labor market remains healthy and should support continued increases in consumer spending
** While the unemployment rate is now the lowest since May 2007, wages were a soft spot in the report, climbing 2.5% from a year earlier (+2.7% est.)
* EARNINGS:
** After-market Friday: Berkshire Hathaway (BRK/A)
** Pre-market Monday: Newell Brands Inc (NWL), Mallinckrodt PLC (MNK), Sysco Corp (SYY), Cimarex Energy Co (XEC), Tyson Foods Inc (TSN), AES Corp/VA (AES)

Have a wonderful weekend everyone.

Be magnificent!

“My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor, and some style.” Maya Angelou

As ever,

Karen

 “Believe you can and you’re halfway there.” —T. Roosevelt

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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