October 30th, 2013 Business & Market Update

Green across the board this morning as Asia and Europe are coming for the ride the north American markets continue to be on.  Asia was up about a point and a half and Europe is up about a third of a point.

Europe is getting some further lift as Spain is finally emerging from recession, albeit by a small amount but the numbers are positive.  Also, Euro zone economic sentiment increased again in October which is also helping markets stay positive.

In North America, we got the CPI and ADP Private Payrolls this morning.  CPI met estimates coming in for the month of September at 1.2% and year over year at 1.2%.  While estimates were met, the number is still well below where the Fed would like it.  The ADP number was 130000 for October which was below estimates at 150000.  September was revised down to 145000 from 166000.  This is the lowest level in the since April 2013.  The monthly average over the last year is 169538 suggesting growth is continuing but still at a muted pace which continues to favour very accommodative monetary policy.  The Fed releases the minutes of their two day meeting at 2pm today which should provide us with some further information in regard future policy.

The US futures re higher by about a quarter point and with Canadian futures up by a slightly lesser amount.

Gold is up 9 bucks this morning to 1354, oil is down a buck to 97.24 and the loonie is up 0.16 to 95.70.  The US and Canadian 10 year bonds are rallying this morning with yields down to 2.50% and 2.39% respectively.

In mandate earnings news, Gilead Sciences missed by a penny on the bottom line but beat on revenues and raised guidance for the coming year.  Sun Communities missed by a penny on the bottom line but beat on revenues by a big margin.  Also Funds From Operations (FFO) was much higher than estimated and guidance was maintained.  Comcast beat on earnings and met revenues.

Kenneth A. Dick, BA, CIM, CFP, FCSI

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management


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