May 9, 2014 Newsletter

Dear Friends,

Tangents:

Mother, English
Matr, Sanskrit
Meter, Greek
Mater, Latin
Modor, Old English
Mutter, German
Mere, French
Mat, Russian

Disobedience

A.A. Milne

James James
Morrison Morrison
Weatherby George Dupree
Took great
Care of his Mother,
Though he was only three.
James James
Said to his Mother,
“Mother,” he said, said he;
“You must never go down to the end of the town,
if you don’t go down with me.”
James James
Morrison’s Mother
Put on a golden gown,
James James
Morrison’s Mother
Drove to the end of the town.
James James
Morrison’s Mother
Said to herself, said she:
“I can get right down to the end  of the town
and be back in time for tea.”
King John
Put up a notice,
“LOST  or  STOLEN or STRAYED!
JAMES JAMES
MORRISON’S MOTHER
SEEMS TO HAVE BEEN MISLAID.
LAST SEEN
WANDERING VAGUELY:
QUITE OF HER OWN ACCORD,
SHE TRIED TO GET DOWN TO THE END OF THE TOWN-
FORTY SHILLINGS REWARD!”
James James
Morrison Morrison
(Commonly known as Jim)
Told his
Other relations
Not to go blaming him.
James James
Said to his Mother,
“Mother,” he said, said he:
“You must never go down to the end of the town
without consulting me.”
James James
Morrison’s mother
Hasn’t been heard of since.
King John
Said he was sorry,
So did the Queen and Prince.
King John
(somebody told me)
Said to a man he knew:
“If people go down to the end of the town, well,
what can anyone do?”
(Now then, very softly)
J.J.
M.M.
W.G.Du P.
Took great
c/o his M*****
though he was only 3.
J.J.
Said to his M*****
“M*****,” he said, said he:
“You-must-never-go-down-to-the-end-of-the-town-
if-you-don’t-go-down-with ME!”

-from Caroline Kennedy’s Poems to Learn by Heart, Disney Hyperion Books.

HAPPY MOTHER’S DAY TO ALL THE MOTHERS READING THIS!

Photos of the day

Kate Moon points out a couple of airborn balloons to her son, Oliver Moon, 17 months held by Corky York during the Balloon Stampede event in Walla Walla, Wash. Greg Lehman/Walla Walla Union-Bulletin/AP

A Lemur catta, also known as ring-tailed lemur, with its three-week-old cub clinging to its back sits on a tree at the Schoenbrunn zoo in Vienna.Heinz-Peter Bader/Reuters

Market Closes for May 9^th, 2014

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada
By Gerrit De Vynck

May 9 (Bloomberg) — Canadian stocks fell, giving the benchmark equities index the worst weekly drop since June, as employment declined and BlackPearl Resources Inc. tumbled for a second day after cutting its estimate for oil production.

BlackPearl slid 11 percent, adding to yesterday’s 9.5 percent slump. CIBC cut the stock’s rating to sector perform, the equivalent of neutral, from sector outperform. Crew Energy Inc. and Bellatrix Exploration Ltd. dropped at least 5 percent, leading declines among oil companies in the Standard & Poor’s/TSX Composite Index. Cineplex Inc., an operator of movie theaters, gained 3.1 percent after RBC Capital Markets recommended buying the shares.

The S&P/TSX fell 11.97 points, or 0.1 percent, to 14,534.06 at 4 p.m. in Toronto. Volume was 10 percent below the 30-day average, data compiled by Bloomberg show. The Canadian equity benchmark lost 1.6 percent this week, the most since June.

“Because the volumes are down and many investors are still unsure of themselves, you’re finding greater moves in the marketplace, much more volatility,” said Irwin Michael, fund manager at ABC Funds in Toronto. His firm manages about C$900 million ($825 million).

Employment fell by 28,900 in April, Statistics Canada said today in Ottawa. The unemployment rate remained at 6.9 percent as 25,600 people also left the labor force, reducing the participation rate to the lowest since November 2001. Economists surveyed by Bloomberg News projected a 13,500 job increase and a jobless rate unchanged at 6.9 percent, according to median forecasts.

IGM Financial Inc. decreased 0.5 percent to C$54.16 after reporting first-quarter earnings that missed analyst estimates.  The company’s revenue exceeded estimates.

Nautilus Minerals Inc., which plans to mine the ocean floor, rose 13 percent to 53 Canadian cents after Papua New Guinea paid for its share of the company’s main project. Earlier in the day Nautilus rose by as much as 32 percent.

K-Bro Linen Inc. slipped 3.1 percent to C$39. The company reported first-quarter profit that missed some analyst estimates.

US
By Joseph Ciolli

May 9 (Bloomberg) — U.S. stocks rose, sending the Dow Jones Industrial Average to a record, as Internet shares rebounded after a three-day selloff and Gap Inc. led retailers higher.

Groupon Inc. and LinkedIn Corp. rose more than 2.5 percent to pace gains among Internet stocks. Gap surged 3.3 percent amid an unexpected increase in April sales. Symantec Corp. rose 3.3 percent as its sales forecast exceeded analysts’ predictions. CBS Corp. fell 2.2 percent after posting quarterly revenue that missed estimates. Ralph Lauren Corp. slipped 2.1 percent as it forecast sales below analysts estimated.

The S&P 500 rose 0.2 percent to 1,878.48 at 4 p.m. in New York. The Dow increased 32.37 points, or 0.2 percent, to 16,583.34, topping its previous record close reached April 30. The Russell 2000 Index of small stocks added 0.9 percent. The Nasdaq Composite Index climbed 0.5 percent. About 5.8 billion shares changed hands on U.S. exchanges, 13 percent below the three-month average.

“The market is just trying to find footing,” Jerry Braakman, chief investment officer of First American Trust in Santa Ana, California, said in a phone interview. His firm manages $1.1 billion. “You’ve seen the market changing its mind throughout the day quite a bit recently. That’s indicative of people trying to search for direction.”

Today’s gain trimmed the S&P 500’s loss for the week to 0.1 percent. The technology-heavy Nasdaq Composite tumbled 1.3 percent, its biggest weekly drop in a month.

The Dow Jones Internet Composite Index rose 1.3 percent today, its first gain in four days. The gauge tumbled 3.6 percent for the week, led by declines of more than 15 percent in Twitter Inc. and Groupon.

Small-caps and Internet shares such as Facebook Inc. and Amazon.com Inc. have been the biggest victims of the market retreat that began two months ago as investors fled last year’s best-performing equities. The Russell 2000 has fallen 8.4 percent from a March 4 record amid concern that prices have outrun earnings.

The Nasdaq Composite is trading at 34.8 times reported earnings, double the multiple of 17.2 for the broad equity measure.

Of the 453 S&P 500 constituents that have released results this earnings season, 76 percent have beaten estimates for profit, while 53 percent have exceeded projections for revenue, data compiled by Bloomberg show. The index’s members increased their earnings by 5.5 percent and their sales by 3 percent in the first quarter, according to analysts surveyed by Bloomberg.

The Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility known as the VIX, fell 3.8 percent today to 12.92, after rising 4.5 percent earlier in the day. The gauge added 0.1 percent for the week.

Six out of 10 groups in the S&P 500 rose. Consumer and health-care companies had the best performance, advancing more than 0.5 percent. Technology shares added 0.2 percent as a group. Utilities had the biggest decline, losing 1.4 percent.

Groupon climbed 7 percent to $6.05. The shares, which rose 142 percent in 2013, dropped as much as 56 percent from this year’s high on Jan. 3. LinkedIn, which rallied 89 percent last year, increased 2.5 percent to $148.69. The shares are down 31 percent in 2014.

Netflix Inc. rose 2.1 percent to $328.55, trimming its loss for the week to 3.6 percent. TripAdvisor Inc., Google Inc. and Amazon.com climbed at least 1.2 percent today.

Gap jumped 3.3 percent to $40.52. The apparel maker posted preliminary first-quarter profit that topped analysts’ estimates. Sales in April were led by an 18 percent gain at Old Navy, the retailer’s value-focused brand.

Symantec gained 3.3 percent to $20.79 as the maker of security software forecast first-quarter sales of $1.65 billion to $1.69 billion. Analysts on average had projected $1.64 billion. In the fourth quarter, which ended March 28, net income rose to 31 cents a share from 27 cents a year earlier.

CBS declined 2.2 percent to $56.74 after the owner of the most-watched U.S. television network said first-quarter sales fell 4.6 percent to $3.86 billion. Analysts had predicted $3.92 billion. Advertising revenue dropped 12 percent in the period.

Ralph Lauren lost 2.1 percent to $148.81. Retailers have been deepening discounts and seeking to create new styles to attract shoppers amid shaky consumer confidence and flagging mall traffic. Ralph Lauren said sales at stores open at least a year fell 2 percent in the quarter through March 29, hurt by unseasonably cold weather.

Have a wonderful weekend everyone.

Be magnificent!

Expansion is life; contraction is death.

Love is life, hatred is death.

We began to die the day we began to contract, to hate others

and nothing can prevent our death,

until we come back to life, to expansion.

Swami Vivekananda, 1863-1902

As ever,

Carolann

Competitors weren’t designed to fall in love

with each other.

-Bill Gates, 1955-

Carolann Steinhoff, B.Sc., CFP®, CIM, FCSI

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7