Markets Mixed To End October As Fed Reserve Keeps Gas On QE3

allpennystocks Newsletter

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http://ymlp278.net/z85tDu ——————————————————————————– November 3, 2013 Week & Month In Review…

Week & Month In Review For October 28 to November 1, 2013 Spotlight Companies Mentioned This Week:

* Fresh Start Private Management, Inc. (OTCQB:CEYY) This week on AllPennyStocks.com:

* Article Published, October 28, 2013: Capstone Companies Projects Big Jump in Revenue in October (http://www.allpennystocks.com/aps_us/special-reports/401/Capstone-Companies-Projects-Big-Jump-in-Revenue-in-October.htm) (U.S. Company) * Article Published, October 30, 2013: Eurasian Minerals Options More Properties (http://www.allpennystocks.com/aps_ca/special-reports/382/Eurasian-Minerals-Options-More-Properties.htm) (CDN Company) * Article Published, November 1, 2013: Transgenomic Signs Collaboration Agreement with PerkinElmer for Worldwide Rights to Cancer Detection Tools (http://www.allpennystocks.com/aps_us/special-reports/403/Transgenomic-Signs-Collaboration-Agreement-with-PerkinElmer-for-Worldwide-Rights-to-Cancer-Detection-Tools.htm) (U.S. Company) Video charts for the week:

* October 31st Technical Video Chart For OWOO. The One World Holdings chart has been in a channel since early in August with a support at $0.002 and resistance at $0.005. The indicators are moving towards bullishness as the price comes off the bottom again, putting the chart on radar to try again to break out of the pattern. view:

( http://www.youtube.com/watchv=EGwd2ZMQ9iI ).

* October 31st Technical Video Chart For IMZ:CA. The International Minerals chart is trading in a very tight range for the past three weeks as it consolidates after a recent climb to $2.95 as part of a three-month uptrend. The bollinger bands are tightening on the channel, suggesting that a larger move may soon be coming. Click here to view: ( http://www.youtube.com/watchv=vM91A_mXNVE ).

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WEEKLY & MONTHLY UPDATE – MARKETS MIXED TO END OCTOBER AS FEDERAL RESERVE KEEPS GAS ON QE3 North American exchanges moved in different directions to close October and ring-in November with the blue chip Dow Jones Industrial Average and S&P 500 moving ahead while tech stocks took a hit to drag the Nasdaq lower meanwhile precious metals and oil declines weighed on the commodity-heavy Toronto markets. The Dow and S&P 500 are largely riding on momentum, shirking-off outside influences to hit new record highs, albeit intraday or end of day levels.

For the most part, the week did not include any earth-shattering news as there has been in previous weeks. The partial government shutdown has fallen from view since ending on October 17. News sources even spent considerable time away from the markets, per se, to broadcast testimony in front of Congress and subsequent discussion on the condition of the new insurance marketplace in the US, healthcare.gov.

The technical problems with the website and a growing list of constituents reaching out to politicians have provided fodder for Republicans to actively voice their disapproval of the Affordable Care Act (ACA). Lead architects of the website, Centers for Medicare & Medicaid Services Administrator Marilyn Tavenner and Health and Human Services Secretary Kathleen Sebelius, have now provided testimony to the House Committee on Energy and Commerce on how the problems are going to be fixed by the first of December. It`s not so much that this testimony directly impacts the markets, but the ongoing battle in Washington over the ACA will likely play a role in upcoming budget and debt ceiling meetings at the start of 2014. Further blowback on the whole policy is expected to continue by many.

The Federal Reserve was certainly in focus as it concluded a two-day meeting with a customary report following the meeting on Wednesday afternoon. Analysts mostly expected that the Fed would maintain its policy of ultra-low interest rates and purchases of $85 billion each month in Treasuries and mortgage-backed securities, known as QE3, a practice that has been ongoing for more than a year to try and combat sluggish economic growth and a high unemployment rate. As forecast, the central bank did not make any major changes to its stimulus package, although it did suggest that tapering still may happen in 2013, something that the markets mostly did not hold as a possibility.

The Fed said that it is still too early to pull back on its asset purchases, but noted that the US economy has made improvements in recent months, a tone that was more hawkish and lead to speculation about if tapering could possibly begin in December. As typical, the bank said it will continue to evaluate progress and would keep interest rates at all-time lows “at least until” the unemployment rate reaches 6.5 percent. On that point, October`s unemployment rate is due to be released this coming Friday.

James Bullard, president of the Federal Bank of St. Louis, said that gains in labor markets could warrant a cut in Fed purchases.

Philadelphia Federal Bank President Charles Plosser, an opposer of QE3, said that inflation could become a problem as the Fed starts to unwind its balance sheet. Stocks edged lower following the Fed commentary, worried that the punch bowl of easing may be taken away soon. There was a similar reaction in August when the reality of tapering was edging closer.

If there was a surprise this week, it came in the form of very strong manufacturing data, which would support the idea of the Fed slowing its monetary easing plan. Reports on manufacturing activity in the Midwest US and complete country easily outpaced expectations, indicating that the partial government shutdown was ignored by businesses and may not have the impact that many suspected it did on growth to start the final quarter of the year.

Other than that, investors digested a slew of earnings reports that were mostly upbeat. About 370 of the companies in the S&P 500 have reported through Friday, with about 75 percent beating analyst expectations on profits and 53 percent topping revenue predictions.

Bloomberg estimates that earnings will cumulatively rise about 4.1 percent for index members and sales will climb 2.9 percent for the third quarter as compared to the third quarter of 2012.

This week, the markets will get a few major pieces of economic data to chew on as earnings season continues. Both Canada and the US will deliver their latest reports on employment conditions for October and the US will get a key report on gross domestic product. All three reports come late in the week, so some choppy, yet cautious, trading will likely precede Thursday and Friday. It`s been a banner year so far for the markets, including the benchmark S&P 500 rising about 24 percent to date and looking to challenge the gains from 2009 as the best year in the last decade. In order for the index to slow its roll, it is going to have to go against averages as in the last three decades, the S&P 500 has registered gains for November 60 percent of the time.

The Canadian dollar rebounded modestly from a seven-week low against the US dollar as it rose against most world counterparts late in the week after a better-than-expected report on gross domestic product.

Gains against the greenback were pared, though, on manufacturing reports in the US that far exceeded expectations and diving prices for oil, Canada`s largest export. On the week, the Canadian dollar gained 0.29%, or $0.00273, meaning next week will begin with one Canadian dollar buying US$0.959545. For the month of October, the Canadian dollar lost about 1.11 percent against the US dollar.

Commodity Snapshot:

* Gold futures sunk from five-week highs as gold and silver sold-off last week. Even though the Federal Reserve maintained its massive asset purchase plan, comments from the FOMC were somewhat hawkish about slowing the stimulus package, citing underlying strength in the economy. This weighed on precious metals as traders steered clear to mull what the main bank may do. Underscored by potential Fed tapering and benign inflation, the US dollar gained against most rivals, slicing monthly gains for the precious yellow metal. A stronger dollar generally puts pressure on gold as it is priced in US dollars, making it more expensive for users of foreign currencies to purchase.

December contracts were the most actively traded for the week, losing $39.30 per ounce, or 3.31%, to $1,313.20. For October, spot gold slipped lower by $5.60 per ounce, or 0.42 percent.

* Silver futures weren`t immune to a metal sell-off as investors trimmed positions across the board, although it did manage to hold a tight range on Friday after falling nearly 5 percent in Thursday action. December contracts for silver were the most actively traded, declining 80.2 cents, or 3.54 percent, to $21.837 per ounce. During October, spot silver still added 21 cents per ounce, or 0.97 percent.

* Copper futures rebounded from near two-week lows, getting a lift from manufacturing data in China, which showed that output at factories increased for the third straight month in October, according to HSBC. New orders, which posted their best numbers in nearly a year, and exports both improved, increasing appetite for the industrial red metal as China is the world`s largest consumer of copper. Optimism for future copper demand was also boosted by the strong manufacturing data in the US. December contracts were the most actively traded on New York`s COMEX exchange during the week; climbing 2.95 cents, or 0.90%, to $3.2985 per pound. For all of October, spot copper lost 1.7 cents per pound, or 0.51 percent.

* Oil futures continued to sink last week, dropping in the last four sessions to hit their lowest level since June 21 as inventories are swelling more than analysts expect. In the week ended October 23, the Department of Energy said that stockpiles grew by 5.2 million barrels, exceeding predictions of a rise of 2.9 million barrels. Growing inventories suggest that supply is outstripping demand, inventories have climbed 6.6% in 2013. Crude production rose to 7.9 million barrels per day in the week ended October 18, the highest level in 24 years. December contracts for West Texas Intermediate crude were the most actively traded; dropping $3.24, or 3.31%, to $94.61 per barrel.

For the month, spot crude prices fell 5.91 percent.

Equity Market Snapshot:

(All percentages on a weekly basis unless otherwise noted) * Major gold miners were a drag on the Toronto markets after a big week prior. Barrick Gold (TSX:ABX, -11.15%), Yamana Gold (TSX:YRI, -9.68%), Kinross Gold (TSX:K, -8.09%), Agnico-Eagle Mines (TSX:AEM, -6.45%), Newmont Mining (TSX:NMC, -6.45%) and Goldcorp (TSX:G,-9.44%) all notched losses.

* Barrick reported that it is cutting its capital spending budget by another $1 billion in 2014 as a result of suspending construction at its Pascua-Lama project, which straddles the Argentina-Chile border and facing environmental hurdles. Barrick also disclosed a dilutive plan to raise about $3 billion to repay debt through issuance of 163.5 million shares at $18.35 per share. Meanwhile, Barrick reported adjusted earnings of 58 cents per share, down from last year, but topping expectations of 51 cents per share in profits.

* Speaking of earthly concerns, Taseko Mines Ltd. (TSX:TKO, -8.33%) said that an environmental study of its billion-dollar New Prosperity mine proposal in British Columbia showed the project would have “several significant adverse environmental effects.” * Major energy plays were mostly lower with falling crude prices.

Talisman Energy (NYSE:TLM, +1.05%) and Exxon Mobil (NYSE:XOM, +2.10%) moved ahead, while Cenovus Energy (NYSE:CVE, -1.25%), Suncor Energy (NYSE:SU, -2.14%), Imperial Oil Ltd. (NYSE:IMO, -1.71%), Chevron Corp.

(NYSE:CVX, -2.14%) and Canadian Natural Resources (NYSE:CNQ, -1.85%) slipped downward. XLE, the Energy Select Sector SPDR, declined 0.60 percent, its second straight red week.

* Big integrated oil and gas companies reported earnings last week.

BP Plc’s (NYSE;BP, +6.62%) beat analysts and upped its dividend.

ExxonMobil also beat Wall Street, despite earnings dropping 30 cents per share from the year earlier to $1.79 per share. Investors liked that Exxon finally reported a quarterly increase in oil and gas output for the first time in more than two years. Royal Dutch Shell (NYSE:RDS.A, -2.93%) came up short of expectations with a 32-percent dive in net income to $4.2 billion.

* Consol Energy Inc. (NYSE:CNX, -3.93%) agreed to sell its Consolidation Coal Company subsidiary for $3.5 billion in value to a subsidiary of Murray Energy Corp. The sale includes five coal mines in West Virginia that collectively produced 28.5 million tons of thermal coal last year.

* Suncor said that it is going ahead and closing its Fort Hills oilsands project. The cost is estimated at $13.5 billion, which will be shared between Suncor and partners Total E&P Canada Ltd. and Teck Resources Ltd (NYSE:TCK, -6.70%).

* The biggest of banks in the US were a market soft spot. Wells Fargo & Co. (NYSE:WFC, -0.44%), UBS AG (NYSE:UBS, -9.51%), Goldman Sachs Group (NYSE:GS, -0.02%), Citigroup (NYSE:C, -2.62%), Bank of America (NYSE:BAC, -1.68%) and JPMorgan Chase (NYSE:JPM, -0,49%) all moved lower. XLF (NYSE:XLF, -1.16%), the financials select sector SPDR that tracks the financial stocks in the S&P 500, declined for the second week in a row.

* Canada`s biggest banks did their part to help the TSX Composite.

National Bank of Canada (TSX:NA, +1.45%), Bank of Montreal (TSX:BMO, +0.12%), Toronto-Dominion Bank (TSX:TD, +1.89%), Bank of Nova Scotia (TSX:BNS, +2.10%), Canadian Imperial Bank of Commerce (TSX:CM, +2.75%) and Royal Bank of Canada (TSX:RY, +1.38%) all climbed. National Bank of Canada has risen in 12 straight weeks.

* Valeant Pharmaceuticals International Inc. (TSX:VRX, -1.33%) agreed to pay $142.5 million to Anacor Pharmaceuticals Inc. (NASDAQ:ANAC, +1.94%) to resolve all outstanding disputes and put an end to litigation over alleged breaches of contract involving Valeant units Dow Pharmaceutical Sciences Inc. and Medicis Pharmaceutical Corp.

* Facebook (NASDAQ:FB, -4.23%) had investors guessing about its earnings, but delivered profits and revenue that topped expectations.

However, the stock pulled back further from all-time highs under pressure that it is losing ground with teenagers visiting the social media site. Amongst other things a 13-year old girl appeared on CNBC talking about how she doesn`t like Facebook because of too much supervision from parents and how she and her friends prefer other social sites where they can have more privacy.

* CGI Group (TSX:GIB.A, -2.59%) has been steadily getting thrown under the bus by the US government as one of the main contractors for the government`s troubled health-care insurance website, healthcare.gov, that is still not working properly. CMS head Marilyn Tavenner and HHS Secretary Kathleen Sebelius have now testified in front of a congressional committee accepting responsibility, but still pointing a finger at CGI and other contractors for the website that is a cornerstone of Obamacare that was supposed to be operating properly on October 1.

* Pfizer, Inc. (NYSE:PFE, +1.83%) reported third-quarter revenue of $12.64 billion, down 2 percent from the year prior quarter. Excluding special items, such as restructuring and acquisition costs, Pfizer reported adjusted earnings of $3.86 billion, or 58 cents per share, versus $3.75 billion, or 50 cents per share, in the same quarter last year. Wall Street was expecting adjusted earnings of 56 cents per share on revenue of $12.7 billion.

* Shares of embattled retailer J.C. Penney Co. (NYSE:JCP, +19.88%) rebounded from lows after CEO Myron Ullman reiterated his view that sales trends are improving.

* Sears Holdings (NYSE:SHLD, +4.08%) was once in a similar position as Penneys, but has staged a multi-year comeback. A sizable deal was announced last week in which Sears Canada (TSX:SCC, +3.67%) will get $400 million from its landlords for vacating five department stores by the end of February, including its flagship location in Toronto`s Eaton Centre.

* Shares in micro-cap pharmaceutical company Oxygen Biotherapeutics (NASDAQ:OXBT, +98.16%) soared following news that researchers at Duke University completed an analysis of 14 different studies that evaluated patients using the cardiac drug levosimendan which showed the drug can reduce mortality in heart surgery patients. Oxygen Biotherapeutics has a definitive agreement with Phyxius to acquire certain assets, including U.S. and Canadian development and commercialization rights to levosimendan.

* After getting pummeled the week prior on the back of an unfavorable jury decision in a patent battle with Apple (NASDAQ:AAPL, -1.13%), shares of Wi-LAN Inc. (TSX:WIN, +0.31%) stopped the bleeding by announcing that it is exploring a variety of strategic alternatives, including a possible sale of the company or a new dividend policy.

* Shares of Air Canada (TSX:AC.B, +10.32%) printed five-year highs to continue a run that has included gains near 200% and 11 out of 13 green weeks (including 10 in a row) since the beginning of August.

* Merck & Co. (NYSE:MRK, -2.81%), the world`s third biggest biotech by revenue, sank to a five-month low on a third-quarter report that topped expectations, but showed that rivals’ new diabetes drugs are cutting into sales of its blockbuster Januvia. Merck also lowered the high end of its full-year guidance. Q3 total sales were $11.03 billion, down 4 percent from $11.49 billion in the year prior quarter.

Excluding one-time items, which included acquisition and restructuring costs, adjusted profits were $2.73 billion, or 92 cents per share, ahead of analyst expectations of 88 cents per share.

* A few IPOs exploded on their opening days of trading. The Container Store Group, Inc. (NYSE:TCS) priced their shares at $18 each and soared to $36.20. Qunar Cayman Islands Ltd. (NASDAQ:QUNR), a Chinese travel-booking service controlled by Baidu Inc. (BIDU), China’s largest search engine, priced ADR shares at $15 and rose as high as $35 before settling at $28.40. Fellow Chinese company 58.com, Inc. (NASDAQ:WUBA), an online classified ads company referred to as “China`s Craigslist,” offered its shares at $17 and the stock price ran to $27 before wrapping the week at $25.00.

Weekly Indices Results:

The S&P TSX Composite Index snapped a three-week win streak, fading 61.96 points, or 0.46%, to 13,337.46. The TSX-Venture Composite Index dropped back from near 18-month highs, carving off 18.25 points, or 1.87%, to 955.33.

In the States, the Dow Jones Industrial Average rose for the fourth straight week, gaining 45.27 points, or 0.29%, to 15,615.55. The much-broader S&P 500 posted new record highs again; advancing 1.87 points, or 0.11%, to close at 1,761.64. The tech-rich NASDAQ Composite was the laggard of the US bunch; losing 21.32 points, or 0.54%, to 3,922.04.

Canadian Economic Data:

* Statistics Canada said that real gross domestic product rose 0.3% in August, after increasing 0.6% in July and declining 0.5% in June.

The increase beat economist forecast for a 0.1-percent gain. The output of goods-producing industries grew 0.4% in August, led by oil and gas extraction. The agriculture and forestry sector also increased. In contrast, manufacturing and utilities declined.

Construction was unchanged. The output of service industries increased 0.3% in August, after gaining 0.4% in July, as almost all major industrial sectors registered growth. Mining, quarrying and oil and gas extraction grew 1.9% in August, after expanding 1.5% in July.

* After three consecutive monthly advances, the Industrial Product Price Index was down 0.3% in September, with 12 of the 21 major commodity groups posting declines. Economists predicted a flat month.

Primary metal products (-0.9%) was the largest contributor to the decline of the index, mainly as a result of lower prices for aluminum products (-1.7%), copper and copper alloy products (-2.1%) and other non-ferrous metal products (-0.9%). The decrease in the IPPI was also attributable to petroleum and coal products (-0.4%), which were down for the first time since April 2013. The IPPI rose 1.0% in the 12-month period ending in September, after increasing 1.7% in August.

On a year-over-year basis, the index has not recorded a decline since December 2012.

* The Raw Materials Price Index fell 1.5% in September. Economists expected a decline of 1.0 percent. Although all major commodity groups posted lower prices, the decline of the RMPI was mostly attributable to mineral fuels (-0.9%) and vegetable products (-5.3%).

To a lesser extent, non-ferrous metals (-2.4%) also contributed to the decline of the RMPI. During the 12-month period ending in September, the RMPI advanced 2.1% after increasing 5.1% in August.

This week, major economic data will include Building Permits and the Ivey Purchasing Managers Index on Wednesday; and Housing Starts and the latest Labor Force Survey on Friday.

U.S. Economic Data:

* For the week ending October 26, the Labor Department said that initial jobless claims decreased 10,000 to 340,000. Economists predicted claims would decline to 335,000. The four-week moving average, a less volatile measure of jobless trends, rose by 8,000 to 348,250. The four-week average is climbing as a result of elevated claims in recent weeks as California, the nation’s most populous state, processed a backlog of claims that stacked-up as it dealt with system glitches from a computer upgrade in September. Claims also swelled from the 16-day partial government shutdown in the first half of the month.

* The Institute for Supply Management`s Manufacturing Index rose to 56.4 in October from 56.2 in September, topping economist predictions of a decrease to 55.0. Readings above 50 indicate expansion in the factory sector, while readings below signals contraction. October marked the fifth consecutive month of reading above 50 and the highest level since April 2011. The rise in the headline index suggests that manufacturers mostly ignored the government shutdown. The average for the index over the past 12 months is 52.8.

* A report from the Federal Reserve showed that industrial production surged in September, rising 0.6% to post its largest increase in seven months and beat economist expectations of a 0.4% increase. In August, industrial production, which measures production at the country`s mines, factories and utility plants, had expanded by 0.4 percent. On the downside, the report showed that manufacturing production expanded by 0.1% in September, slowing from 0.5% growth the month prior. For the third quarter, industrial production increased at a 2.3% annualized rate, more than doubling the 1.1% growth in the second quarter.

* The Labor Department reported that the Producer Price Index dipped 0.1% in September, marking the first decline since April, following a 0.3% gain in August. Economists expected a 0.2% rise for the month.

Year-over-year, the PPI was up 0.3%, representing the smallest gain in three years after showing expansion of 1.4% in August. So-called “core” PPI, which excludes that volatile food and energy segments, edged ahead 0.1 percent. Compared to last September, core PPI was up 1.2%, indicating that inflation remains very tame.

* A separate report from the Labor Department showed that consumer prices rose as expected in September. The Consumer Price Index increased 0.2% during the month, lead by rising fuel costs. “Core” CPI, which doesn`t include volatile food and energy costs, climbed 0.1 percent, less than the 0.2% climb that was expected. In the 12 months through September, the CPI was up 1.2 percent, after a 1.5% advance in August. The figure is still far below the Federal Reserve`s 2.0% target as inflation remains stubbornly low.

* The Commerce Department said that retail sales dropped by 0.1% in September, dug down by falling sales at auto dealers. Compared to September 2012, retail sales were up 3.2 percent. Sales at electronics stores rose 0.7% as consumers snapped up the latest model of the iPhone and other gadgets. Retail sales, excluding autos, rose by 0.4 percent, equaling economist predictions. Sales from motor vehicles and parts dropped by 2.2%, their worst month since October 2012.

This week, data in the States will include Initial Jobless Claims and Gross Domestic Product on Thursday; and the Employment Situation and Personal Income and Outlays on Friday.

Company Spotlight News:

In spotlight news, Fresh Start Private Management, Inc. (OTCQB:CEYY), a leader in alcohol treatment and rehabilitation programs, announced that in response to the company`s ongoing efforts to decrease expenses, increase revenue and protect the future well-being of Fresh Start Private Management Inc., all executives are decreasing their annual salaries to $75,000. With reimbursement from major insurance carriers beginning to make its way to the Santa Ana clinic and the ongoing expansion of clinics in other regions, this further puts the company on a more solid foundation. This move alone will reduce total annual executive salaries by 62.5 percent.

“We unanimously decided to reduce our salaries in support of our belief that we are all here for the long haul. We believe in our company`s product, mission, and evolving management team and have confidence that the outcome from this measure will better position the company for a solid financial future,” said Kent Emery, CEO of Fresh Start, in a statement on the altruistic decision. For more information on CEYY, the entire profile can be read here: (http://www.allpennystocks.com/aps_us/company_spotlights/archives/ceyy.asp).

The Month at a Glance – October October was a historic month in the United States. From a Wall Street perspective, the S&P 500 rose to record highs and is looking to break through 1,800, a level many traders did not see possible at this moment given the contention in the nation`s Capitol. The Dow Jones Industrial Average also closed at a record level, while the Nasdaq is perched near 4,000, representing its highest point since August 2000.

Records aside, the month was highlighted by an impasse in Washington that resulted in a partial shutdown of the government as Republicans and Democrats fought over a budget and raising the nation`s borrowing capacity, known as the debt ceiling. The argument has been going on for years now, underscored by Republicans looking for a way to stop healthcare reform under the Affordable Care Act, while the Democrats refuse to make any concessions for the ACA (aka “Obamacare”) as it was passed into law more than three years ago. With both sides of the aisle standing firm on their beliefs, an October 1 deadline arrived with no agreement, resulting in about 800,000 government employees being furloughed. It was the first shutdown of the government since 1996.

The markets actually weren`t too concerned at first, initially rising on the shutdown, mostly viewing it as a buying opportunity on a dip as part of a massive uptrend in 2013 that has only had two down months (June and August) for the major indexes. World leaders began chiming-in, making statements that the US had better figure out a way not to hit the debt ceiling. China`s vice-finance minister Zhu Guangyao, who is normally very reserved about commenting on other country`s politics, even warned of the possible global ramifications of a US debt default. After several unsuccessful attempts to get bills through the Senate by the Republicans that would delay or defund Obamacare, an 11th-hour deal was finally struck just before the deadline where the US would hit the debt ceiling and default on its bills. Essentially, the Republicans conceded in their efforts in order to not default on payments, failing to make any headway in stopping the ACA from going forward, but putting an end to the 16-day shutdown. True resolutions were not reached, however, decisions on the budget and debt ceiling were simply delayed until early in 2014.

A central healthcare marketplace, healthcare.gov has been launched, although it has been fraught with technical problems to date and is the center of heated debates over criticism of rising premiums for millions of Americans who`s health care policies have been cancelled under the new law.

The turmoil in Washington, DC was a catalyst for the Federal Reserve to continue its massive stimulus program of buying $85 billion in Treasuries and mortgage-backed securities each month. In previous months, there was the expectation that the Fed was going to begin to taper its efforts as the economy was looking stronger. The central bank will now await and analyze data in coming months to evaluate the impact of the government shutdown that economists believe created a 0.3-percent drag on gross domestic product for the fourth quarter.

Also during the month, President Obama nominated Janet Yellen for the position of Federal Reserve Chairman to succeed Ben Bernanke. Yellen is regarded as dovish on quantitative easing, so the markets cheered the nomination, hoping that tapering of QE3 will happen later, rather than sooner.

North of the US border, the Bank of Canada`s senior deputy governor Tiff Macklem said that the Bank of Canada expects third and fourth-quarter growth to come in at 2.0 percent to 2.5 percent. This was down from the previously forecast growth in the third quarter of 3.8 percent and 2.5 percent in the final quarter. Later in the month, the central bank disappointed by cutting its projected pace of economic expansion from 1.8 percent to 1.6 percent for the year. There wasn`t a surprise in the bank keeping its key interest rate at 1 percent, but it did raise an eyebrow by indicating that there is a possibility of actually lowering its benchmark rate, a significant deviation from the stance that it has held for more than one year that the next move in rates would be upward. In a monetary policy report, BoC Governor Stephen Poloz said that the bank is monitoring data and may need to rethink its position to raise rates.

Despite any of those concerns, the Toronto markets joined the US rally with the TSX Composite pushing above 13,000 for the first time since July 2011 and the smaller Venture exchange climbing to four-month highs.

Outside of North America, the International Monetary Fund weighed in saying that downside risks are mounting and urged policymakers to make changes to keep the global economy from experiencing subpar growth.

The IMF noted all the issues in the US, as well as lingering euro zone problems, slowing growth in China and spending problems in Japan as reasons for cutting its world output forecast for 2013 to 2.9 percent from its July guidance of 3.2 percent.

China, the world`s second biggest economy, mostly provided support for the markets during October. While there have certainly been growth concerns in general, manufacturing seemed to pick-up in August after hitting 11-month lows in July and the services sector in September was as strong as it has been in six months, according to reports.

Third-quarter GDP came in at 7.8% expansion, accelerating from 7.5% growth in the second quarter. Economists have been concerned that China`s economy could fall hard as it has been slowing in recent years, but the latest data suggested that will not occur, lending support to equities and commodities.

Speaking of China, Chinese credit rating agency Dagong, which is independent of – but has close ties to – the Chinese government, slashed its rating on US debt from A to A-, citing that the country was only able to remain solvent by borrowing more money. China is the the US`s biggest foreign creditor.

When all was said and done, the markets largely ignored concerns of slowing growth, the political theatrics and brinkmanship in the US and again focused on the benefits of monetary stimulus from the Federal Reserve with all the major North American indexes registering strong gains. Analyst opinions on the market vary greatly, with some saying that the markets are way too frothy for the underlying conditions of the US economy and others contending that October is only the beginning of what is going to be a very strong end to the year. If indeed “the trend is your friend,” then more upward movement should certainly be expected, but at AllPennyStocks.com, we are still taking a conservative view and recognizing the upcoming political gridlock that is likely to start 2014 and watching for moves of the Fed to hit the brakes on easing, a decision that could create a roadblock for ongoing upward pressure.

Monthly Indices Results:

* S&P TSX Composite: up 4.49% (+574.07 pts.) * TSX-Venture: up 1.86% (+17.53 pts.) * Dow Jones Industrial Average: up 2.75% (+416.08 pts.) * S&P 500: up 4.46% (+74.99 pts.) * NASDAQ: up 3.93% (+148.23 pts.) Monthly Equity Market Snapshot:

(All percentages on a monthly basis unless otherwise noted) * Shares of Apple (NASDAQ:AAPL, +9.64%) moved ahead as activist investor Carl Icahn continues to “push hard” for a $150-billion stock buyback. Icahn has a $2 billion position in AAPL. Mid-month Apple debuted another version of its MacBook Pro and iPad mini, this one with a high-definition screen, along with a skinnier and lighter model for its iPad called the iPad Air. The new laptop hit retailers first and the new iPads went on sale November 1. Separately, a Texas jury ruled in favor of the company in a patent infringement case brought against it by Wi-LAN Inc. (TSX:WIN, -17.79%).

* Britain`s biggest drugmaker GlaxoSmithKline PLC (NYSE:GSK, +4.90%) agreed to sell its thrombosis brands, Aristra® and Fraxiparine®, and its Notre-Dame de Bondeville manufacturing site in France to the Aspen Group for 700 million pounds ($1.13 billion) in an all-cash deal as it continues to focus on its late-stage drug pipeline.

* Valeant Pharmaceuticals International Inc. (TSX:VRX, +2.56%) rose to new highs after the FDA approved a new Bausch & Lomb disposable contact lens sooner than expected. Bausch & Lomb was acquired by Valeant for about $8.7 billion in August.

* Social network website Twitter disclosed that it is going to the NYSE, not Nasdaq, and it plans to raise upwards of $1.4 billion in its initial public offering, selling 70 million shares at between $17 and $20 per share. At the high end of that range, Twitter would be worth nearly $11 billion. The company makes its public debut this coming Thursday. In what appeared to be a situation of mass confusion, investors apparently had Twitter mixed-up with bankrupt Tweeter Home Entertainment Group (Pink Sheets:THEGQ, +233.33%), sending shares of essentially worthless Tweeter up more than 1,000 percent at one point during the month, before it dropped back, although still posted strong gains.

* Jos. A. Bank Clothiers, Inc. (NASDAQ:JOSB, +9.21%) put a non-binding offer on the table to buy bigger rival The Men’s Wearhouse Inc. (NYSE:MW, +24.23%) for $2.3 billion in cash, or $48 per share. The offer price represented a 36-percent premium to Men’s Wearhouse closing price the day before the offer was made public.

Men`s Wearhouse rejected the offer, saying the Jos. A. Bank was making the offer at an “opportunistic” time when the share price of MW was down and then set in place a shareholder rights plan to stop any hostile takeover attempt.

* BlackBerry (TSX:BB, +1.60%) had a volatile month after Reuters reported that the smartphone maker is in talks with Cisco Systems (NASDAQ:CSCO, -3.01%), +1.13%), Google (NASDAQ:GOOG, +17.66%) and SAP AG (NYSE:SAP, +5.99%) about a possible sale. The report followed news two weeks earlier that BlackBerry“s biggest shareholder, Fairfax Financial Holdings (TSX:FFH, +9.23%), proposed to take BlackBerry private in a deal worth about $4.7 billion. As of this writing, sources say that Fairfax has still not arranged financing to make the deal happen as a November 4 deadline quickly approaches.

* Apropos, following a strong earnings report, Google shares jumped over the $1,000 per share mark for the first time ever. The search engine giant was also in the news for a mysterious barge in the San Francisco Bay that is reported to be a promotion for its Google Glass project, featuring high-tech showrooms and more for “invitation only” guests.

* Comcast Corp. (NASDAQ:CMCSA, +5.51%) said that it has struck a deal with Twitter to launch a new service called “See It” that will allow Comcast Xfinity users to directly access shows, DVR services and more through a Twitter post. Users will have access to a bevy of Comcast and NBC Universal (owned by Comcast) material through a new tab in a Tweet that is set to go live this month.

* Regency Energy Partners LP (NYSE:RGP, -9.24%) said that it is spending $5.6 billion to acquire rival natural gas pipeline operator PVR Partners LP (NYSE:PVR, +13.28%) to gain a strategic position in two prolific shale fields. The deal includes Regency assuming PVR’s net debt of $1.8 billion.

* Shares of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA, -88.04%) lost more than $2 billion in market capitalization after discussions with the Food and Drug Administration resulted in a hold on trial enrollment for its kinase inhibiting leukemia drug Iclusig (ponatinib) because of safety concerns. 24-month follow-ups to treatment showed that patients were experiencing higher risks of blood clots and other complications.

* Shares of specialty drugmaker Savient Pharmaceutical (OTCQB:SVNTQ, -93.03%) plunged as the company was delisted from the Nasdaq upon filing Chapter 11 bankruptcy in a Delaware court. Savient also filed a motion asking for approval to sell the majority of its assets to Sloan Holdings C.V., a subsidiary of US WorldMeds, LLC, for approximately $55 million.

* The Sunday Times reported that TD Bank (TSX:TD, +4.08%) may be interested in buying Citizens Bank from the Royal Bank of Scotland`s for $13 billion. Citizens is the fourth largest by deposits in the Western New York market and has a presence along the Atlantic. Shares of TD Bank have risen in six straight months.

* Advanced Auto Parts (NYSE:AAP, +19.96%) said that it agreed to acquire privately held General Parts International, Inc. in an all-cash deal with an enterprise value of $2.04 billion. The merged company will have annual sales of $9.2 billion, making it the biggest player auto parts company in North America, edging past current leader AutoZone Inc. (NYSE:AZO, +2.83%).

* A Canadian National Railway (TSX:CNR, +9.75%) train derailed with four cars carrying crude oil and nine cars carrying LPG catching fire west of Edmonton, Alberta. The accident follows a 72-car accident in June where a CNR train derailed and exploded in Lac-Megantic, Quebec.

The nation`s largest rail operator struck a tentative new labor contract with the Teamsters union, which represents some 3,300 conductors, trainmen, yardmen and traffic coordinators, averting a possible strike by the workers. Other than disclosing it was a three-year contract, terms were not yet disclosed.

Penny Stock Of The Day The October “Penny Stock of The Day” Companies were a success again with some nice returns as six companies notching double digit gains since they were highlighted, with two of them trading over 40%. The winner for the month was Zhone Technologies, Inc. (Nasdaq:ZHNE) which rose 52.16% since it was highlighted, and is still holding all of the gains. A close second was Americas Petrogas Inc. (TSX-Venture:BOE), which rose 42.4% after our coverage was initiated at $1.25.

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