“I Was the Only Vegetarian Around” -Killer Kowalski


TSX Gets Lift From Rail and Oil Stocks

The Toronto stock market was higher Friday primarily due to rising railroad and energy stocks. The S&P/TSX composite index shook off early losses to advance 62.09 points to 15,266.57.  Geopolitical concerns cast a shadow over markets going, centred around Ukraine after a Malaysian Airlines jetliner was shot down Thursday. Ukraine accused pro-Russian separatists of shooting down the Malaysia Airlines plane with 298 people aboard with a surface to air missile, sharply escalating the crisis in the region and threatening to draw both East and West deeper into the conflict. The rebels denied downing the aircraft. Markets were also focused on the Middle East as Israel launched a ground offensive in Gaza aimed at destroying militants’ tunnels and rocket launcher sites. The Canadian dollar was resilient despite the risk-off tone, up 0.26 of a cent to 93.16 cents US as the latest data showed rising inflation. The consumer price index rose 0.1% during June versus expectations for a slight decline. That translated into an annualized gain of 2.4% — a two-year high — against the 2.3% advance that economists forecast.  U.S. indexes were higher after racking up sharp losses on Thursday as the Dow Jones industrials moved ahead 123.4 points to 17,100.18, the Nasdaq rose 68.70 points to 4,432.15 and the S&P 500 index gained 20.10 points to 1,978.22.


Canadians Not Confident With Their Level of Insurance Coverage

Life insurance remains a bit of a mystery to most Canadians, according to a survey released by Toronto-based BMO Insurance. According to the poll, 88% of Canadians are not very familiar with the different types of life insurance options available. Furthermore, while 74% of those Canadians surveyed have some type of insurance either through their employer or personal policies, 70% of those people are less than confident that their life insurance will provide enough money to take care of loved ones.  The BMO study found that the top three reasons why Canadians buy life insurance are: they don’t want to burden their family financially after death (53%); they feel a sense of responsibility to have it (49%); they were told by family and/or friends they should have it (16%).  Results for the BMO Life Insurance Survey were gathered from online surveys conducted by Pollara between July 2, 2014 and July 4, 2014 from a sample of 1,005 adult Canadians.


Market Update as of July 18 2014

The TSX closed at 15267, up 141 points or 0.93% over the past week. YTD the TSX is up 12.08%.

The DOW closed at 17100, up 156 points or 0.92% over the past week. YTD the DOW is up 3.15%.

The S&P closed at 1978, up 15 points or 0.76% over the past week. YTD the S&P is up 7.03%.

The Nasdaq closed at 4432, up 16 points or 0.36% over the past week. YTD the Nasdaq is up 6.10%.

Gold closed at 1311, down -28.00 points or -2.09% over the past week. YTD gold is up 8.89%.

Oil closed at 103.01, up 2.18 points or 2.16% over the past week. YTD oil is up 4.46%.

The USD/CAD closed at 1.073391, up 0.0017 points or 0.16% over the past week. YTD the USD/CAD is up 0.96%.


Sources: Bloomberg; Invesrment Executive; BMO; advisor.ca