November 01, 2019 Newsletter

Dear Friends,

Tangents: Happy Friday!
On Nov. 1, 1952, the United States exploded the first hydrogen bomb, in a test at Eniwetok in the Marshall Islands.  Go to article »

My November Guest
 
My Sorrow, when she’s here with me,
Thinks these dark days of autumn rain
Are beautiful as days can be;
She loves the bare, the withered tree;
She walked the sodden pasture lane.
 
Her pleasure will not let me stay.
She talks and I am fain to list:
She’s glad the birds are gone away,
She’s glad her simple worsted gray
Is silver now with clinging mist.
 
The desolate, deserted trees,
The faded earth, the heavy sky,
The beauties she so truly sees,
She thinks I have no eye for these,
And vexes me for reason why.
 
Not yesterday I learned to know
The love of bare November days
Before the coming of the snow,
But it were vain to tell her so,
And they are better for her praise.
 
                                   Robert Frost

PHOTOS OF THE DAY

Aurora Borealis, the Northern Lights, over the Vestrahorn mountain in the east of Iceland.
CREDIT: OWEN HUMPHREYS/PA WIRE

Starlings flock towards land at dawn to roost, performing incredible and almost balletic movements together before they settle; huge groups of starlings that twist, turn, swoop and swirl across the sky. They seamlessly change shape and direction in perfectly choreographed movements as the warm up in the morning sun.
CREDIT: MEDIAWORLDIMAGES/ALAMY LIVE NEWS

Fog cloud covers the summit of the Mount Ararat in Dogubeyazit district of Agri, Turkey.
CREDIT: GOKSEL CUNEY IGDE/ANADOLU AGENCY VIA GETTY IMAGES

A Worker with the Los Angeles, California-based artist group Kinetics attaches a message written on a ribbon to an installation by artist Patrick Shearn that will be part of celebrations marking the 30^th anniversary of the fall of the Berlin Wall Berlin, Germany.
CREDIT: SEAN GALLUP/GETTY IMAGES

Market Closes for November 01^st, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1999, shortly after its 103rd birthday, the Dow Jones Industrial Average took a big slurp from the fountain of youth. It replaced four stodgy old companies—Chevron (a Dow member since 1984), Goodyear (a member since 1930), Sears (since 1924) and Union Carbide (since 1928) with four hot growth stocks—Home Depot, Intel, Microsoft and SBC Communications.
Canada
By Michael Bellusci and Bloomberg Automation
(Bloomberg) — Canadian stocks advanced as oil futures climbed as much as 3.2% in New York on Friday. Meanwhile, China and the U.S. signaled they’re getting closer to agreeing on the first phase of a deal aimed at reducing tensions in a trade war that’s slowed the global economy. Additionally, Encana Corp.‘s plan to re-domicile south of the border potentially makes the company ineligible for inclusion in the S&P/TSX Canadian indexes. The S&P/TSX Composite rose 0.7% to 16,594.07 in Toronto. The move was the biggest since Canadian stocks added 0.8% on Sept. 5 and was the third advance in the past four days. Energy stocks led the market higher — climbing 1.8% as a group — as 7 of 11 sectors gained.
Commodities
* Western Canada Select crude oil traded at a $21.50 discount to WTI
* Spot gold flat around 1,512.90 an ounce
FX/Bonds
* The Canadian dollar gained 0.1% to C$1.3144 per U.S. dollar
* The Canada 10-year government bond yield rose 3 basis points to 1.445%
Insights
* So far this week, the index rose 1.2%, heading for the biggest advance since the week ended Sept. 20
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 48.2002| 1.8| 27/5
Financials | 26.7991| 0.5| 25/2
Industrials | 26.4270| 1.4| 28/4
Information Technology | 9.5995| 1.1| 9/0
Consumer Discretionary | 3.5746| 0.5| 11/5
Real Estate | 3.5657| 0.6| 23/1
Health Care | 2.6472| 1.2| 8/2
Consumer Staples | -0.7176| -0.1| 3/6
Utilities | -1.3640| -0.2| 8/8
Communication Services | -1.3923| -0.2| 4/3
Materials | -6.4453| -0.3| 25/23
US
By Jeremy Herron and Claire Ballentine
(Bloomberg) — It’s old, but it’s not slowing down. A bull market that traces its lineage to the depths of the financial crisis is revving up again, notching its fourth straight weekly gain and pushing its advance in 2019 past 22%. After wavering at mid-year amid a U.S. China trade war and recession anxieties, American stocks are back in melt-up mode, ending three of the past five sessions at records. While nobody knows if it’s getting late for this decade-old rally, gains like these have been common at the tail end of bull markets past. A study by Bank of America Corp. on equity peaks since 1937 shows that being uninvested in the last year of an advance meant foregoing one-fifth of the rally’s overall return. The S&P 500 powered to a fresh high Friday after an unexpectedly strong hiring report offered hope that the labor market can propel consumer spending and extend the record-long expansion despite weak business investment and trade tensions. Stocks got a brief boost and the dollar pared losses after China’s Ministry of Commerce said trade negotiators had achieved a “consensus in principle” with the U.S. The latest economic data come after the Fedlowered rates Wednesday and signaled it is unlikely to make further changes, up or down, any time soon. That sent stocks to a record, before a batch of weak economic data and renewed worries over trade weighed on the measure Thursday. The S&P 500 is up 1.5% in the week. Fed Vice Chairman Richard Clarida reiterated in Bloomberg Radio interview that monetary policy is “in a good place” and the consumer is strong.
The jobs report “reinforces the thesis that the economy is hanging in there with steady growth thanks to the consumer, jobs, low rates, strong housing and that the global picture is weak,” said Alec Young, managing director of Global Markets Research at FTSE Russell. Friday’s good news on the trade front follows a tough Thursday session that saw markets  rattled as Chinese officials cast doubts about reaching a comprehensive long-term trade deal with the U.S. In earnings news, Exxon Mobil and Chevron reported solid results, while Alibaba Group Holding Ltd. rose after its report. European bonds slipped. Oil edged higher though headed for its biggest weekly loss in a month on swelling American stockpiles. Earlier, risk sentiment got a boost from better-than-expected Chinese manufacturing data, even as uncertainty remains over an interim trade deal. Gold fell after a 1% rally Thursday. “Markets participants, as well as maybe even the Fed, have been very optimistic” on the trade truce, Tiffany Wilding, chief U.S. economist at Pacific Investment Management Co., told Bloomberg TV. “We can see some more deterioration there.”
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1% as of 4 p.m. New York time.
* Th Dow Jones Industrial Average added 1.1%.
* The Stoxx Europe 600 Index gained 0.8%.
* The MSCI Asia Pacific Index gained 0.3%.
* The MSCI Emerging Market Index advanced 0.7%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%.
* The euro rose 0.1% to $1.1167.
* The British pound was flat at $1.294.
* The Japanese yen fell 0.1% to 108.178 per dollar.
Bonds
* The yield on 10-year Treasuries gained two basis points to 1.71%.
* The two-year yield added three basis points to 1.55%
* Germany’s 10-year yield gained three basis points to -0.382%.
Commodities
* Gold futures was flat at $1,510.70 an ounce.
* West Texas Intermediate crude gained 3.5% to $56.10 a barrel.
–With assistance from Alexandra Harris, Constantine Courcoulas and Reade Pickert.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Death destroys a man; the idea of death saves him.
                                  -E. M. Forster, 1879-1970                

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
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www.carolannsteinhoff.com