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“It Always Seems Impossible Until It’s Done” -Nelson Mandela

Markets Close Higher

North American stock markets registered solid gains Friday amid stronger than expected employment reports in Canada and the United States. The S&P/TSX composite index ran up 80 points to 13,281 as Statistics Canada reported that the economy added 21,600 jobs during November; almost double the number that had been expected. The jobless rate held steady at 6.9%.

The Dow Jones industrials gained 139 points to 15,961 even as the U.S. employment report left intact concerns the Federal Reserve will start to cut back on a key stimulus measure sooner than expected. The U.S. Labor Department reported that 203,000 jobs were created during November, on top of a revised 200,000 in October. Economists had expected a gain of around 180,000. The solid American jobs number added to other data that came out this week showing an improving economy, including strong manufacturing and housing reports and stronger than expected third quarter economic growth.

Self Employment Increases

Canadian self-employed numbers are on the rise. Following several years of little growth, the number of self-employed Canadians has increased 1.7% year-to-date, outpacing the 1.3% rise in paid employment, finds Scotiabank. Self-employment is on track to account for about one-quarter of net job creation in 2013, significantly higher than its 15% share of the overall workforce. The recent upswing appears to reflect improving confidence in the economy, rather than weak labour market conditions pushing Canadians into self-employment. There are currently about 2.7 million self-employed individuals in Canada, accounting for 15% of the total workforce. Sixty per cent of self-employed workers are owners of unincorporated businesses, including independent workers such as childcare providers. The vast majority (86%) do not employ any paid help. The other roughly 40% are owners of incorporated businesses, with a fairly even split between those with and without employees. The likelihood of being self-employed increases with age, with one-third of workers aged 65 and over choosing self-employment over paid work compared with less than 10% for those aged 25-34. The majority of self-employed workers are between the ages of 35 and 64.

Market Update as of December 6 2013

The TSX closed at 13281, down -114 points or -0.85% over the past week. YTD the TSX is up 5.90%.

The DOW closed at 16020, down -66 points or -0.41% over the past week. YTD the DOW is up 22.25%.

The S&P closed at 1805, down -1 points or -0.06% over the past week. YTD the S&P is up 26.58%.

The Nasdaq closed at 4063, up 3 points or 0.07% over the past week. YTD the Nasdaq is up 31.45%.

Gold closed at 1228, down -22.00 points or -1.76% over the past week. YTD gold is down -26.90%.

Oil closed at 97.71, up 4.70 points or 5.05% over the past week. YTD oil is up 5.55%.

The USD/CAD closed at 1.0639, up 0.0025 points or 0.24% over the past week. YTD the USD/CAD is up 7.73%.

Sources: Bloomberg; Investment Executive; advisor.ca

“Shopping is Cheaper Than a Psychiatrist” -Tammy Fay Bakker

TSX Closes Higher

The Toronto stock market ended higher Friday amid a stronger than expected showing for third-quarter economic growth in Canada, while indications pointed to a successful start to the U.S. holiday shopping season. The S&P/TSX composite index was up 24 points to 13,395. The Canadian dollar weakened despite higher commodity prices and a report from Statistics Canada that gross domestic product grew at an annualized rate of 2.7% in the third quarter. That was better than the 2.5% pace that was expected. GDP growth in September was ahead 0.3% from the previous month versus the 0.2% rise that had been expected. The loonie lost 0.3 of a cent to 94.16 cents US as the greenback gained ground against other currencies.

U.S. indexes largely ran out of steam as New York markets operated on a shortened post-Thanksgiving session, which ended at 1 p.m. ET. The Dow Jones industrials closed down 10.92 points to 16,086.41, the Nasdaq ran ahead 15.14 points to 4,059.89, and the S&P 500 index was 1.42 points lower at 1,805.81. Black Friday has been traditionally the start to the busy shopping season, sandwiched between U.S. Thanksgiving and Christmas. It was named Black Friday because that is when retailers are said to begin moving out of the red and into the black, or becoming profitable.

Canada’s Economy Grows at Fastest Pace in Two Years

Canada’s economic growth was stronger than expected in the third quarter. Statistics Canada says the national gross domestic product grew at a 2.7 % annual rate, two-tenths of a point above estimates. The pace of growth was the fastest in two years, when the economy expanded by 3.5 %. For comparison purposes, the U.S. economy is expanding at a 2.8 % annual pace. The mining sector was a strong performer, as mining and oil and gas extraction were up 2.2 % in the quarter. There were also gains in the manufacturing, retail, and wholesale trade, finance and insurance sectors.  The loonie gained a fifth of a cent to 94.67 cents US following the release of the data.

Market Update as of November 29, 2013

The TSX closed at 13395, down -83 points or -0.62% over the past week. YTD the TSX is up 6.81%.
The DOW closed at 16086, up 21 points or 0.13% over the past week.YTD the DOW is up 22.76%.

The S&P closed at 1806, up 1 points or 0.06% over the past week.YTD the S&P is up 26.65%.

The Nasdaq closed at 4060, up 68 points or 1.70% over the past week.YTD the Nasdaq is up 31.35%.

Gold closed at 1250, up 7.00 points or 0.56% over the past week.YTD gold is down -25.60%.

Oil closed at 93.01, down -1.82 points or -1.92% over the past week.YTD oil is up 0.48%.

The USD/CAD closed at 1.0614, up 0.0100 points or 0.95% over the past week.YTD the USD/CAD is up 7.47%.

Sources: Bloomberg, Investment Executive, advisor.ca

“Please Accept The Noble Offer of My Steady Hand and Compassionate Heart” -Charlie Sheen to Rob Ford

TSX Closes Higher

The Toronto stock market closed higher Friday amid optimism that the U.S. Federal Reserve won’t be cutting stimulus as early as thought. The S&P/TSX composite index rose 51 points to 13,482. The Canadian dollar rose 0.19 of a cent to 95.72 cents U.S. on strong manufacturing data for September. Statistics Canada reported that manufacturing shipments rose 0.6% to $49.9 billionin September. US indices were higher with the Dow Jones ahead 85 points to 15,951. Markets continued to find kift after the woman most likely to succeed Ben Bernanke at the helm of the fed made it clear that she’s prepared to continue the central bank’s low interest policies to keep the U.S. economic recovery on track.

Debt Hurts Families

Almost half (44%) of Canadian parents are concerned about how their chidren would be affected if they aren’t able to reduce their amount of debt. A study of Canadian parents from debt-assistance firm MNP Ltd.shows that while most parents believe that they’re competent financial role models for their kids, many believe that how they handle their finances is having a negative impact on their children. Fifty-six per cent of Candian Families avoid discussing family finances with their children. One in five say their relationship with their children has been impacted or strained by their current finacial situation. Twenty-three per cent of parents agree that their children asking them questions about money and family finances causes them anxiety.

Sources: Bloomberg, Investment Executive, advisor.ca

Analysts say that U.S. markets could be in for some kind of retracement with the Dow industrials up more than 20 per cent year to date.  Traders also looked ahead to Thursday when the U.S. Senate banking committee will quiz Janet Yellen, President Barack Obama’s candidate to become the next chair of the central bank.  Yellen has a reputation for being a dove as far as stimulus is concerned and traders will be listening for any hints as to whether she thinks the economy is strong enough to start tapering those purchases that have supported a strong rally on many stock markets.

“ I don’t expect the Fed to do anything different than they have,” said John Stephenson, vice-president and portfolio manager at First Asset Funds Inc.

“The reality is, they’re going to be accommodative. I think that most people think (tapering will start) at the earliest, at the end of the first quarter. I think it could easily be the end of the second quarter or later.”

I personally think that we will not see any tappering until the Debt ceiling issue is behind us in March.  Just remember that markets will fluctuate in the weeks ahead. There is no way to avoid it. Just be prepared to see a bit of volatility and restrain yourself from reacting. That is the most important part of investing successfully.

“Take A Walk On The Wild Side”  -Lou Reed

TSX Dips Lower

The Toronto stock market closed lower Friday even as investors took in encouraging manufacturing data from China and the United States. The S&P/TSX composite index declined 23.8 points to 13,337.46, pressured by continued weakness in the gold sector as prices hit a two-week low and Barrick Gold announced a huge stock offering. “Gold is getting crushed, but gold is a flight to safety,” said Wes Mills, chief investment officer Scotia Asset Management PM Advisor Services. “And so, gold coming off the way it is, is a confirmation that the global economy is in fact improving.”

The Canadian dollar was unchanged at 95.9 cents US.  U.S. indexes were higher after the Institute for Supply Management reported the factory sector showed greater than expected expansion during October, rising to 56.4 from 56.2 in September. Economists had expected the index to dip to 50.9. Anything above 50 indicates expansion. The Dow Jones industrials closed up 69.8 points to 15,615.55, the Nasdaq rose 2.34 points to 3,922.04 and the S&P 500 index was up 5.1 points to 1,761.64. Earlier, HSBC Corp. said its monthly purchasing managers’ index for China showed its best improvement in seven months, rising to 50.9 from September’s 50.2. China’s economic growth rebounded to 7.8% in the three months ending in September, from the previous quarter’s two-decade low of 7.5%.

The TSX is coming off its best month of 2013, running ahead 4.5% during October, leaving it up 7.26% year to date.

How Was Your Halloween ?

With just over half of Canadians or 54% celebrating Halloween the spooky holiday spending  stayed under control with the average spent for costumes, parties and candy around $70, finds a Scotiabank poll. The top activities Canadians planned for Halloween were handing out candy (21%),  taking kids trick-or-treating (13%), followed by going to a Halloween party for adults (8%).Of those that had planned their costumes for Halloween, the most popular costumes for adults were vampires, witches, fairies and pirates. Canadians aged 35-44 are the most likely to take their kids trick or treating. Women (11%) and younger Canadians aged 18-24 (34%) are more likely to go to a Halloween party. B.C. residents spend the most for Halloween ($82) compared to Atlantic Canadians ($51).  About 15% of Canadians saved in advance for Halloween expenses.

Market Update as of November 1, 2013
The TSX closed at 13337, down -62 points or -0.46% over the past week. YTD the TSX is up 6.35%.

The DOW closed at 15616, up 46 points or 0.30% over the past week.YTD the DOW is up 19.17%.

The S&P closed at 1762, up 2 points or 0.11% over the past week.YTD the S&P is up 23.56%.

The Nasdaq closed at 3922, down -21 points or -0.53% over the past week.YTD the Nasdaq is up 26.88%.

Gold closed at 1314, down -38.00 points or -2.81% over the past week.YTD gold is down -21.79%.

Oil closed at 94.66, down -3.31 points or -3.38% over the past week.YTD oil is up 2.26%.

The USD/CAD closed at 1.0418, down -0.0032 points or -0.31% over the past week.YTD the USD/CAD is up 5.49%.

Sources: Bloomberg, advisor.ca, Scotiabank, Investment Executive

“Credit worthiness is like virginity, it can be preserved but not restored very easily, so it is crazy to play around with it.” -Warren Buffett

Markets Are Positive

The Toronto stock market closed sharply higher Friday, rising to its highest level in more than two years following strong economic data from China and solid earnings reports from General Electric, Morgan Stanley and Google. The S&P/TSX composite index ran ahead 99.64 points to 13,136 after closing above 13,000 on Thursday for the first time since late July 2011. The increase came amid relief that U.S. lawmakers had reached an agreement to extend the debt limit, thus averting a possible default.“Things are aligning for Canada,” said Wes Mills, chief investment officer at Scotia Asset Management PM Advisor Services. “Canada has lagged for a couple of years now on the U.S. in particular. Technically, the TSX has broken out (and) we should be able to challenge the 14,000 level.”The Canadian dollar was off 0.01 of a cent to 97.13 cents US as inflation pressures increased slightly in September.

U.S. indexes were higher as the Dow Jones industrials erased early losses to advance 28 points to 15,399.65, while the Nasdaq rose 51.13 points to 3,914.28 as Google’s stock price cracked the US$1,000 level. The S&P 500 index was ahead 11.35 points at a record high of 1,744.5. There was positive news from the world’s second-biggest economy as China’s growth rebounded in the latest quarter to 7.8% from a two-decade low of 7.5% in the second quarter, helped by government stimulus measures. Strong economic data, solid earnings and relief that at least a short-term fix for the U.S. debt crisis was attained sent the TSX up 1.9% this past week while the Dow industrials climbed 1.07%.

U.S. Reaches Debt Deal

World equity markets rose and short-term U.S. Treasury debt rallied on Wednesday as lawmakers neared a last-minute deal to prevent the United States from defaulting on its debt. U.S. Senate Majority leader Harry Reid said a bipartisan compromise was reached in the Senate to lift the government’s $16.7-trillion borrowing limit and re-open the government, which has been shuttered since October 1. News that a deal had emerged was enough to push U.S. stocks within striking distance of an all-time high. It comes after days of political wrangling over the U.S. budget and the debt limit, which has sparked substantial preparation by dealers in government securities in case of a default.  “Any deal that gets us out of the current box, where we have a potential imminent default, is good,” said Cam Albright, director of asset allocation at Wilmington Trust Investment Advisors in Wilmington, Delaware.

Sources: Bloomberg; Investment Executive; advisor.ca