November 19, 2018 Newsletter

Dear Friends,

Tangents:
On Nov. 19, 1863, President Abraham Lincoln delivered the Gettysburg Address as he dedicated a national cemetery at the site of the Civil War battlefield in Pennsylvania. Go to article »
Puerto Rico Discovery Day
Meg Ryan, b. 1961
Jodie Foster, b. 1962

Gary and I  had an interesting time yesterday attending the One Day University in Vancouver.  The speakers were Professor Seth Lerer, a Distinguished Professor of Literature at the University of California at San Diego.   His lecture was entitled Four Books that Changed the World.
The second lecture was given by David Helfand who is a Professor of Astronomy at Columbia University.  His lecture was entitled What We Know About the Universe (and What We Don’t Know).
Both stimulating and fascinating topics.   Professor Sara Mednick was also scheduled to give a lecture but was unable to get out of California due to the fires.
One Day University takes place in many cities in North America by an array of distinguished professors from many universities who lecture on a myriad of varied and interesting topics.  You can see if there is anything that you’d be interested in attending in future by viewing their full schedules at www.onedayu.com.
PHOTOS OF THE DAY

A little owl marches across a rooftop in Worcestershire. Credit: Pete Walden/Caters News Agency

Paul Zizka surveys the gorgeous Scottish landscape at the Quiraing on the Isle of Skye. Credit: Paul Zizka/Caters News Agency

Families visit the beach as an exceptionally large Atlantic swell hits the Cornish coast at sunset, in Porthtowan, Cornwall. Credit: Mike Newman/Alamy Live News

Light art projects will illuminate buildings by artists from the Netherlands and abroad. The projects are all connected in a walking route through the city centre making Eindhoven an open-air museum in the night. Credit: Nicolas Economou/Nurphoto/SIPA USA
Market Closes for November 19^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
$ ~ On this day in 1792, the Insurance Company of North America held its IPO at $10 a share in the same room where the Declaration of Independence was adopted 16 years earlier. More than 660 investors signed up for shares. If an investor had spent $1,000 to buy 100 shares on the first day, they would have been worth more than $10.1 million by 1998.
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks followed their U.S. peers lower amid mounting pessimism about escalating trade tensions between the U.S. and China after remarks by Vice President Pence over the weekend. The biggest stocks in the technology and internet sectors saw some of the steepest declines Monday, as a darker outlook for growth pushed investors to further step back from the one-time trading favorites.
The S&P/TSX Composite Index fell 0.6 percent, breaking a three-day advance, with pot and tech shares leading losses. Telecom, energy and industrial stocks posted gains.
Stocks
* Bombardier Inc. rebounded 23 percent after a Citigroup analyst said Friday’s 20 percent drop was excessive because a regulatory review of the company’s executive stock-sale plan “appears routine.”
* Cameco Corp rose 2.7 percent after BofAML upgraded the stock to buy from underperform (PT C$20 from C$10.50) on an improving uranium sector outlook. 
* Enbridge Inc. rose 2.5 percent as Height Securities wrote that its Line 3 Replacement project should get a certificate of need from the Minnesota Public Utility Commission.
Commodities
* Western Canada Select crude oil traded at a $39.25 discount to WTI
* Gold gained 0.1 percent to $1,224.40 an ounce
FX/Bonds
* The Canadian dollar fell 0.2 percent to C$1.3179 per U.S. dollar
* The Canada 10-year government bond yield fell 0.6 basis points to 2.354%
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — Weakness in some of the biggest technology companies sent U.S. stocks tumbling Monday as pessimism about escalating trade tensions between the Trump Administration and China added to concerns about potential new regulations coming for the industry. The dollar steadied and Treasuries crept higher for a fifth straight session.
     All major American benchmarks were down more than 1.5 percent. Software developers and semiconductor manufacturers were the worst performing groups in the S&P 500 Index. The Nasdaq 100 Index plunged more than 3 percent to the lowest since April on renewed concern that trade fights will tamp down global demand and disrupt supply chains for the major technology companies that have carried the bull market for almost 10 years.
     In addition, the biggest drop in homebuilder sentiment in more than four years hammered the housing sector. “The easiest way to stop the selloff would be for Trump and [Chinese President] Xi to reach some kind of agreement, even if it’s just no new tariffs and/or keeping the rate at 10 percent through Jan. 1,” said Max Gokhman, head of asset allocation for Pacific Life Fund Advisors. “The U.S. equity market is starting to price in the supply chain disruption, which is doubly painful because of stretched margins.”
Here are some of the key moves:
* Apple Inc. sank following reports that it had cut production orders for the three iPhone models it unveiled in September. 
* Facebook Inc. dropped as its public image remains under pressure. Snap Inc. and Twitter Inc. tumbled too as social media shares were broadly punished.
* Nvidia Corp.’s two-day plunge reached nearly 28 percent after its disappointing earnings, as chipmaker shares remained in a tailspin.
* Salesforce.com fell 9 percent, the most since February 2016. 
* The SPDR S&P Homebuilders ETF reversed an earlier gain to trade lower following the housing sentiment report.
     “You’re seeing weakness in semiconductors because of Nvidia’s weak earnings that were released last week,” said Ryan Nauman, market strategist at Informa Financial Intelligence. “Facebook is having some more issues with potentially covering up the Russia hack in the 2016 election. Apple, they’re getting downgraded based on demand. A lot of companies and analysts are concerned that the demand for the iPhone has decreased. The trade concern isn’t helping Apple much either with the supply chain.”
Investors are reassessing markets after several weeks of volatility spurred by fears of trade conflicts. The Asia-Pacific Economic Cooperation failed to agree on a joint statement for the first time in its history, and U.S. Vice President Mike Pence attacked China at a weekend summit, quashing optimism that relations would improve at Group-of-20 meetings starting next week. In addition, rising U.S. interest rates are pushing up financing costs and threatening global growth.
     “Any margin for safety with global growth rates is gone,” said Tim Courtney, chief investment officer of Exencial Wealth Advisors in Oklahoma City. “Now we’re going into a period of slow growth. We’re in no-man’s land — sitting, stuck in a slow growing, slow inflationary environment.”
     In Europe, the Stoxx 600 Index fell following a plunge in Renault SA on misconduct allegations against the carmaker’s leader, Carlos Ghosn. European bonds mostly edged lower. The pound fluctuated as U.K. Prime Minister Theresa May appealed to business leaders to help deliver her Brexit deal, and Gibraltar emerged as a fresh sticking point.
     Elsewhere, the Australian and New Zealand currencies slipped after Pence’s remarks. Bitcoin fell below $5,000 for the first time since October 2017. Crude closed in on $57 a barrel as energy stocks rebounded.
Coming Up:
* Bank of England Governor Mark Carney appears before parliament on Tuesday.
* It’s a shortened trading week because of the Thanksgiving holiday in the U.S. on Thursday. In addition, Black Friday, the day after Thanksgiving, marks the traditional start to the U.S. holiday shopping season.
These are the main moves in markets:
Stocks
* The S&P 500 sank 1.7 percent to 2,690.73, while the Nasdaq 100 plunged 3.3 percent.
* The Stoxx Europe 600 Index dipped 0.3 percent.
* The U.K.’s FTSE 100 Index gained 0.1 percent.
* The MSCI All-Country World Index dropped 1 percent.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro climbed 0.3 percent to $1.1451.
* The British pound added 0.1 percent to $1.285.
* The Japanese yen rose 0.3 percent to 112.54 per dollar.
Bonds
* The yield on 10-year Treasuries declined 1 basis point to 3.0537 percent.
* Britain’s 10-year yield decreased three basis point to 1.378 percent.
* Germany’s 10-year yield jumped one basis point to 0.373 percent.
Commodities
* The Bloomberg Commodity Index gained 1.1 percent.
* West Texas Intermediate crude climbed 0.5 percent to $56.76 a barrel.
* Natural gas rose 7 percent to $4.583 per mmbtu.
* Gold was little changed at $1,223.43.
–With assistance from Andreea Papuc and Todd White.

Have a great evening everyone.

Be magnificent!

As ever,

Carolann

I hadn’t been aware that here were doors closed to me until I started knocking on them.
  -Gertrude Belle Elion, 1918-1999

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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com