October 22nd, 2013 Business / Market Update

Overnight in Asia, markets were fairly quiet, despite a big increase last month in Chinese home prices.  The biggest in three years which has some wondering how inflationary this may be and will the PBOC respond.

In Europe, markets are higher by about a half of a point on the jobs news out of the US.  The monthly Non-Farm Payrolls for September were finally released this morning and the number was far below estimates coming in at 148000 vs. 180000 estimated.  The unemployment rate fell to 7.2% from 7.3% on the participation rate falling.  However, the news was not all bad as August was revised higher by 24000 to 193000.  Bottom line growth is occurring however until Washington gets its act together many companies will not actively hire.  Some form of tax reform must take place to assure companies that hiring and expending capital into bricks and mortar will be rewarded down the road.    US futures are higher by a quarter point this morning on the news.

Gold is up 14.00 to 1328 on a weaker US dollar, oil is off another 0.27 to 98.95 and the loonie is flat at 97.04.  The US and Canadian 10 year bonds continue to strengthen this morning as yields are 2.54% and 2.50% respectively.

In mandate earnings news, Lockheed-Martin beat on both earnings and revenues and indicated higher guidance for the balance of the fiscal year.  Whirlpool also beat on both earnings and revenues but cautioned on the balance of the year.  Both stocks are set to open higher this morning.  After the market close CN Rail will report,  I will provide the details tomorrow.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management


Friday, July 26 Business and Market Update

News out of Asia today in regard to Japanese prices moving higher.  It would seem that the greatest part of the move was in regard to higher hydro costs with a lesser contribution coming from durable goods.  Also, the Yen has been moving higher the last couple of weeks (along with Gold) as the US dollar has been under pressure due to the constant Fed speak on longer term stimulus plans.  Markets in Japan were off about 3.00 and in China about half a point.

Europe is flat a region, however both the UK and Germany were lower by about a half a point.  Even with better earnings across the board in the region, many are using the recent rally to take profit.

US futures are trending down this morning by about a half a point awaiting yet another round of Fed talks next week.  Earnings have been strong especially the mandate companies, but markets overall are fixated on the Fed and their next move.

Canada is following the US lead this morning and will open down about a tenth of a point.

Gold is off about 10.00 to 1323, oil is down 0.68 to 104.83 and the loonie is flat at 97.30.

Bond yields edged a little over the week with the ten years in both Canada and the US at 2.42% and 2.57% up about 0.05% respectively.

Looking at earnings news, Gilead Sciences came in at estimates but beat on the top line by a big margin.  The stock is moving higher in the pre-market by about 8%.  TransCanada also met estimates on both earnings and revenue.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management