December 4th, 2013 Business & Market Update

After the sell off in North America yesterday, Japan following overnight with a 2% decline however, China in contrast was higher by about 1.3% on a stronger currency.

Europe is following suit with declines of about three quarters of a point at midday.

In the US the ADP Private Payrolls for November were released and beat by a large margin coming in at 215000 vs. 170000.  This number is the precursor to the Non-Farm Payrolls that will be released by the US government on Friday morning.  Estimates after last months big beat are averaging 166000 new jobs for November.  Futures are trading lower by about a quarter point.  Bond prices are falling pushing the 10 year yield in US bonds to 2.82% and in Canada to 2.62%.

Canadian futures are also down by about a quarter point after strong earnings from the National Bank.  The bank beat on both bottom and top lines, declared a stock split and a dividend increase.  Today at 10am the BOC will release the latest policy statement in regard to interest rates and the general state of the economy.  Interest rates are not going to move, however, the Governor’s comments will be closely watched.

Gold is trading lower by 4.00 to 1215, oil is up 0.77 to 96.82 and the loonie is off another 0.17 to 93.75.

I would seem the correction is upon us which will provide some solid entry points across the board in equities.  I continue to hedge fixed income positions to take advantage of the slowly rising interest rates while maintaining a strong cash equivalent position that will be available to take advantage of higher rates down the road.

November proved to be another good month in all mandates as the changes that have been made over the past couple of months continue to pay off in regard to performance.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

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