October 24th, 2013 Business and Market Updates

We are seeing a rebound today after yesterdays declines across the globe.  China was off about three quarters of a point on the US declines and the dollar weakness, however after the market close positive manufacturing numbers were released which should translate to higher markets there tomorrow.  Japan was higher by about a third of a point.

Europe is stronger on the China news up about a half a point at midday however the Purchasing Managers Data there was weaker than expected.

US and Canadian futures are trading higher by about a third of a point regardless of the fact the Weekly Jobless Claims did not fall as far as expected.  Key word here – fall, which they did to 350000 down 12000 from the previous week.  Estimates were at 340000.

 

Gold is higher by about 7.00 to 1340. Oil continues the slide on supply strength to 96.20 down 0.66 and the loonie lower by about a quarter cent to 96.08.  The US and Canadian 10 year bonds are marginally higher with yields falling to 2.48% and 2.41% respectively.

In mandate earnings, another beat this morning with Deluxe Corp beating on the bottom and top line with guidance of revenue growth in the 4% to 5% range and earnings about 5%.  Altria also beat on both earnings and revenue and guided to a stronger 2014.  CMS Energy, met earnings and revenue estimates.

So far, of the 178 S&P 500 companies to report 138 have beat, 8 have met and 32 have missed.  This is a strong stat, however, the forward guidance has not been strong in many cases on either earnings growth or revenue growth.

On the positive side, Fed-Ex continues to report strong sales going into the holiday season with the stock as a solid barometer to economic conditions.  Caterpillar on the other hand continues to flounder which is a proxy for the global mining industry which continues to show weakness.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

www.glwm.ca

October 17th, 2013 Business and Market Update

Well, they got it done, sort of.  As I mentioned yesterday, the probability for a short-term deal was high and that is exactly what the US congressional and senate leaders ratified last night.  They have until January 15th, 2014 to get a bipartisan budget put together and until February 7th, 2014 to get a new level approved on the debt ceiling.  For now however all can get back to work.  The fallout however has been a loss of production in the billions over the 16 day period.

Markets in Asia, followed the US overnight rallying as a deal was imminent.  Europe on the other hand is following US futures selling off about a half a point as now all eyes are back on the cost of the shutdown and the real economic and earnings news that should drive markets.  Moving to real numbers, the Weekly Jobless Claims in the US fell to 358000 from more than 370000 last week.

Gold is up large this morning more than 30.00 to 1317 on the weak dollar as the deal in Washington would suggest more debt, no cuts to spending and no tapering in the near future.  Oil is off 1.20 to 101.07 and the loonie is stronger by 0.20 to 97.03 on the US dollar weakness.  Bonds are rallying as the taper talk will likely be off the table until sometime in the New Year.  The US and Canadian 10 year bonds are yielding 2.61% and 2.56% respectively.

In earnings news, mandate companies Hubbell Inc and Union Pacific both reported earnings that beat estimates and met or exceeded revenue targets.

Lastly, the Prime Minister in Brussels today to try and ink a trade deal with the Euro Union.  The news has been back burner while the mess in the US has been playing out.  The deal will help both Canada and Europe continue to move goods and services freely between the regions and provide some economic incentive to do so.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

www.glwm.ca