October 29th 3013 Business & Market Update

Asia, sold off another half a point overnight as the US dollar continued to sag with most suggesting the US Fed will stay the course on debt purchases.

Europe on the other hand is up more than three quarters of a point on strong earnings news from many large caps in the region.

US and Canadian futures are flat this morning waiting for the Fed release on Wednesday.

Gold is lower by about 7.00 to 1346, oil is down 0.53 at 98.15 and the loonie is flat at 95.75.  Ten year US and Canadian bonds are also quiet this morning at 2.52% and 2.42% respectively.

The Case Shiller Housing Index was stronger than expected for September as prices advanced by 0.93% vs. 0.65% indicating the housing advance while cooling somewhat is still headed in the right direction.

Two big Pharma companies are reporting today with Pfizer out this morning with a beat on earnings and revenues meeting estimates.  After the close tonight Gilead Sciences will report.

Lastly, Apple reported last night and beat estimates by about half a point with revenues coming in slightly above estimates.  A couple of interesting points of interest:  This quarter marks another where gross margins have fallen dipping under the 40% for the first time.  Also, more than 60% of revenues in the quarter were from international sales.  The stock fell on the news after hours but is trading higher this morning in the pre-market.  It is obvious that as the company continues with its world wide sales initiatives, the margins for the products in the lesser developed world are lower and it would seem the trend is continuing.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management