November 16, 2015 Newsletter

Dear Friends,

Tangents:

Just back from the World Business Forum in NYC, which was truly time well spent, listening to business leaders speak of the secrets of their success and the success of the corporate cultures they nurture, thereby ensuring the success of their organizations and their team members and their shareholders.  I found Carolyn Everson, Vice President, global marketing solutions at Facebook, truly inspirational as she described the culture that she and Mark Zuckerberg and Sheryl Sandberg strive to create so that innovation, ideas, execution ensure continued success of the corporation and the individuals who make up its composition. Other speakers included Sir Richard Branson, Steve Bock, Mark Bertolini, Oscar Farinetti and many, many more. Truly inspirational.

I stayed an extra couple of days over the weekend to visit the new home of the Whitney Museum, as well as attend the theatre. The new home of the Whitney in lower Manhattan is fabulous! Floor to ceiling windows allow for amazing views of the Hudson River and lots of outdoor spaces to enjoy the same terrific views. For anyone reading this and expecting to travel to NYC soon, I can highly recommend Thérese Raquin, starring Keira Knightly, who gives a superb performance, as do the entire cast. Another lighter, fabulous play we saw is Sylvia starring Matthew Broderick. There are a lot of laughs to be had in this play about a man and his dog.

However, a somber mood was felt in many instances as artists and musicians in the city recalled the tragedy in France.  All the cast at both performances ended their performances calling on everyone to pay their respects. Masses of people gathered in Union Square to sing the French National Anthem on Saturday and lights streamed the colors of the French flag…

PHOTOS OF THE DAY

A pianist plays next to the scene of the Bataclan, in Paris, Monday. French police raided more than 150 locations overnight as authorities released the names of two more potential suicide bombers involved in the Paris attacks, one born in Syria, the other a Frenchman wanted as part of a terrorism investigation. Francois Mori/AP

Following the attacks in Paris, the blue, white and red colors of France’s national flag are projected onto the London Eye in London, Britain, Saturday. Suzanne Plunkett/Reuters

A couple stands in the rain as colors of France’s national flag are projected onto the sails of Sydney’s Opera House in Australia, following the attacks in Paris. Jason Reed/Reuters

Market Closes for November 16^th, 2015

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Money, n. –
A blessing that is of no advantage to us excepting when we part with it.  An evidence of culture and a passport to polite society. – Ambrose Bierce.

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for the first time in nine sessions, snapping the worst stretch since 2002, as commodities rallied amid heightened tension after France bombed Syria in response to terrorist attacks in Paris.

     Energy producers soared 3.8 percent, the most in six weeks, to lead a rebound in equities. Gold climbed for the first time in five days as the Paris attacks spurred haven buying, pushing raw-materials producers higher. West Texas Intermediate futures surged 2.5 percent after falling as low as $40.06 earlier.

     The Standard & Poor’s/TSX Composite Index rose 242.10 points, or 1.9 percent, to 13,317.52 at 4 p.m. in Toronto, its biggest advance since Sept. 30. The benchmark equity gauge has lost 9 percent this year, trailed only by Singapore and Greece among developed markets.

     The S&P/TSX lost 4.6 percent in the previous eight trading sessions for the longest losing streak since June 2002. Natural- resource producers slumped more than 5 percent over that period as the Bloomberg Commodity Index tracking prices from copper to crude fell to its lowest since 1999.

     Canadian equities have been among the worst-performing in the world this year, led by declines in natural-resource and health-care stocks. The country’s equity market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest-rate increase from the Federal Reserve.

     Energy producers posted a second day of gains as Suncor Energy Inc. added 3.8 percent and TransCanada Corp. rose 3.1 percent. Barrick Gold Corp. and Yamana Gold Inc. climbed more than 1.2 percent as raw-materials producers increased 0.7 percent as a group. Gold futures advanced for the first time in four sessions.

     Warplanes bombed Islamic State’s nerve center in Raqqa after France said Europe’s worst terror attack in a decade was directed from Syria, which borders OPEC producer Iraq. Crude has plunged about 45 percent in the past year amid signs oversupply will persist.

     Europe is on high alert after at least 129 people were killed in more than half a dozen locations in the French capital. The massacre comes less than a year after the attack on French satirical newspaper Charlie Hebdo in Paris.

     DHX Media Ltd., a media entertainment producer, jumped 3.5 percent for the biggest increase in two months after reporting first-quarter profit and revenue ahead of analysts’ estimates. Of the more than 200 companies in the S&P/TSX to report in the current period, about 60 percent missed revenue estimates, according to data compiled by Bloomberg.

     Valeant Pharmaceuticals International Inc. lost 2.6 percent, to a two-year low. Valeant, briefly the largest stock in Canada by market capitalization this year, has lost more than 71 percent from an Aug. 5 high amid pressure over how it prices its drugs. 

USA

By Dani Burger

     (Bloomberg) — U.S. stocks rebounded after their worst week since an August selloff, paced by energy shares amid speculation that any fallout from Friday’s terrorist attacks in Paris would have a limited economic impact.

     Last week’s hardest-hit group led the rally, an echo of the snapback from the summer selloff, as Chevron Corp. and Exxon Mobil Corp. gained more than 3.5 percent. Procter & Gamble Co. and Wal-Mart Stores Inc. led a surge among consumer staples, rising at least 1.8 percent. Defense companies drove gains among industrials, and thermal-imaging camera maker Flir Systems Inc. jumped 10 percent to lead the S&P 500.

     The Standard & Poor’s 500 Index rose 1.5 percent to 2,053.19 at 4 p.m. in New York, the biggest gain in more than three weeks. The gauge rose back above its average price during the past 100 days. The Dow Jones Industrial Average added 237.77 points, or 1.4 percent, to 17,483.01. It was the Dow’s third consecutive move of at least 200 points.The Nasdaq Composite Index increased 1.2 percent. About 6.8 billion shares traded hands on U.S. exchanges, 9.7 percent below the three-month average.

     “We had a pretty sizable loss over the last two weeks and just because of that we may not be seeing as much as a negative reaction as we could have if the tragedy occurred two weeks ago when the market was up within one percent of the highs,” said Frank Cappelleri, a market technician at Instinet LLC in New York. “Today at least, knowing where the market has come from, it’s helped it at least to be stable.”

     Coordinated assaults late Friday linked to Islamist radicals killed at least 129 people in seven locations in Paris, in Europe’s worst terrorist attack in at least a decade. France dispatched warplanes to bomb Islamic State’s Syrian nerve center while police conducted raids on suspected Islamic radicals in all of France’s major cities.

     The main U.S. equity benchmark index is now 3.6 percent away from its record set in May, after rising to within 1 percent of the all-time high on Nov. 3. The S&P 500 had fallen in seven of the previous eight sessions after Fed Chair Janet Yellen said policy makers’ December meeting was a “live possibility” for a rate increase.

     Traders are pricing in a 64 percent probability that the Fed will raise rates next month. Investors will assess data this week on consumer prices, factory activity and housing starts for further clues on the probability of a boost in rates. Minutes from the central bank’s October policy meeting will be released on Wednesday. A reading today on New York area manufacturing activity in November contracted more than expected, according to estimates from economists surveyed by Bloomberg.

     “This is going to be a market driven by U.S. economic data,” said Stephen Wood, who helps manage $265 billion as chief market strategist for North America at Russell Investments in New York. “I think the market is still keeping it’s gaze on a December Fed decision.”

     All of the S&P 500’s 10 main industries advanced at least 1.2 percent Monday. Energy, phone companies and consumer staples added more than 1.6 percent. The Chicago Board Options Exchange Volatility Index declined 9.6 percent Monday to 18.16, the most in more than three weeks. The measure of market turbulence known as the VIX jumped 40 percent to a six-week high last week, its biggest increase since August.

     Energy companies gained 3.3 percent, the most in more than six weeks to win back more than half of last week’s 6 percent drop. Consol Energy Inc. and Williams Cos. were among the best performers in the S&P 500, rising at least 6.3 percent. Consol gained 7.6 percent after Greenlight Capital’s David Einhorn reiterated his long position in the company, according to people with knowledge of the matter.

     Consumer staples shares in the S&P 500 rose 1.6 percent after falling 2.8 percent last week. Walgreens Boots Alliance Inc. and Tyson Foods Inc. were among the best performers, increasing more than 2.5 percent. Wal-Mart had its strongest increase in more than two months.

     A batch of defense companies climbed in the wake of the Paris attacks. Northrup Grumman Corp., Raytheon Co. and Lockheed Martin Corp. rallied at least 3.5 percent, with Raytheon rising to a record. A proposed $1.29 billion sale of U.S. weapons to Saudi Arabia includes as many as 13,000 smart bombs and spare parts made by Raytheon and Boeing Co., according to officials. Flir Systems, which makes night-vision gear, advanced the most in more than six years.

     Constellation Brands Inc. gained 2.3 percent after the wine and vodka maker agreed to acquire Ballast Point Brewing & Spirits for $1 billion. It follows consolidation in the brewing industry, led by Anheuser-Busch InBev SA’s planned $107 billion takeover of SABMiller Plc. Boston Beer Co. added 3.8 percent.

     Cisco Systems Inc. was among the Dow’s best performers, gaining 2.2 percent after posting its biggest slump since August. Hard-drive makers Western Digital Corp. and Seagate Technology Plc also saw a boost after last week’s selloff, up more than 2.3 percent.

     Following Friday’s terror attacks, online travel booking companies Priceline Group Inc. and Expedia Inc. fell more than 2.1 percent. Air carriers and cruise lines also slumped — Carnival Corp. and American Airlines lost at least 1.4 percent to their lowest in more than a month. A Bloomberg index of U.S. air carriers dropped 1.1 percent to its lowest in almost four weeks.

     Among other companies moving on corporate news, Starwood Hotels & Resorts Worldwide Inc. sank 3.6 percent after Marriott International Inc. agreed to buy Starwood in a deal valued at $12.2 billion, creating the world’s largest hotel company.  Marriott gained 1.4 percent.

     Urban Outfitters Inc. also retreated on acquisition news, after announcing plans to buy the Vetri Family group of Italian restaurants. The retailer dropped 7.4 percent to its lowest in more than four years.
 

Have a wonderful evening everyone.

Be magnificent!

I declare out loud to whoever wants to believe me:

I have no word in my mouth

that is not in your heart!

Kabir

As ever,

Carolann

We can’t help everyone, but everyone can help someone.

                                        -Ronald Reagan, 1911-2004

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