New Record Highs For Dow, S&P 500; CDN Markets Slip On Economic Concerns
allpennystocks Newsletter
You can read the original version online:
http://ymlp279.net/zmz6Ds ——————————————————————————– November 24, 2013 Week In Review…
Week In Review For November 18 to November 22, 2013 Spotlight Companies Mentioned This Week:
* Fresh Start Private Management, Inc. (OTCQB:CEYY) This week on AllPennyStocks.com:
* Article Published, November 19, 2013: Large Order for ProMetic Delivers on Corporate Forecast (http://www.allpennystocks.com/aps_ca/special-reports/386/Large-Order-for-ProMetic-Delivers-on-Corporate-Forecast.htm) (CDN / U.S. Company) * Article Published, November 20, 2013: Revenue Increases at Boldface Group on Kardashian Beauty Product Sales (http://www.allpennystocks.com/aps_us/special-reports/410/Revenue-Increases-at-Boldface-Group-on-Kardashian-Beauty-Product-Sales.htm) (U.S. Company) * Article Published, November 21, 2013: Tembec Swings a Profit in Q4 Despite Soft US Housing Market Dampening Sales (http://www.allpennystocks.com/aps_ca/special-reports/387/Tembec-Swings-a-Profit-in-Q4-Despite-Soft-US-Housing-Market-Dampening-Sales.htm) (CDN Company) Video charts for the week:
* November 21st Technical Video Chart For UNTK. The Unitek Global Services chart has formed a base at $1.05 and is steadily climbing upward. A sharp rise in volume in Wednesday trading and the stock closing near its high of the day has the chart on radar for continued upward pressure. view:
( http://www.youtube.com/watchv=bBkwynB8YCQ ).
* November 21st Technical Video Chart For TRL:CA. After a deep drop in October that nearly halved share value, the Trimel Pharmaceuticals chart held a base a 40 cents and has been edging upward since. Two green days in a row has the pps over a resistance at 50 cents, putting the stock on watch for continued upward movement. view:
( http://www.youtube.com/watchv=kjXajL5KXvI ).
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WEEKLY UPDATE -NORTH AMERICAN STOCKS MIXED AS DOW AND S&P 500 BREAK TO MORE RECORD HIGHS Canadian markets slipped modestly lower last week as stocks in the United States continued to print record highs as part of an ongoing rally and nearly five-year bull market. The Dow Jones Industrial Average topped 16,000 on Monday for the first time ever, although the gains weren`t held by the closing bell. The S&P 500 performed similarly, breaking 1,800 on the same day for the first time in its history, but fell back before the close and the two subsequent days before the US markets exploded heading into the weekend with both benchmark indexes closing above those key levels at record highs. The Nasdaq wasn`t exactly shabby, producing small gains that have the tech-heavy index leaning on 4,000, a level it hasn`t been above since September 2000, a time shortly after the tech bubble popped and the index collapsed.
Stocks tried to come out fast and furious to start the week to continue a healthy run from the week earlier, but some caution set in and opened the door to profit taking as traders waited for the minutes from the latest meeting of the Federal Open Market Committee that were coming Wednesday afternoon. The Federal Reserve and a bevy of economic data were firmly in focus as investors look to the central bank providing some conclusive evidence as to when it will begin slowing QE3, an economic stimulus package consisting of ultra-low interest rates and purchases of $85 billion each month in Treasuries and mortgage-backed securities.
Billionaire Carl Icahn also was attributed for some downward pressure on the markets when the well-known activist investor said early in the week that he was being very cautious with equities and that the market could be ready for a significant pullback. Icahn added that many of the promising earnings reports that have come from the third quarter were a “mirage.” When the minutes were delivered, the markets continued to slide as no reassurances were delivered that the Fed would hold off on tapering its asset purchases that have been largely attributed to the rise in the stock market in 2013. The minutes suggested that the main bank could actually begin tapering next month, even if the labor markets don`t show a dramatic improvement. The Fed has said previously that it would not begin tapering until the unemployment rate dropped to at least 7 percent, but the minutes didn`t support that premise, citing other areas of a strengthening economy that supports pulling-back on stimulus.
With that in mind, traders were definitely looking for economic data to show that the economy is strengthening and can withstand the Fed taking away the punch bowl. That came on Thursday with far better-than-expected labor data in the US and Canada, helping investors warm-up to the idea of stimulus and sparking an equity rally after three straight down days.
The markets also got a bit of a lift on Thursday from the Senate Banking Committee approving the nomination of Janet Yellen as the successor to Fed Chairman Ben Bernanke, positioning her to become the first woman to ever head the Federal Reserve. Yellen is considered to be more dovish on quantitative easing than Bernanke, so if there is any hope of QE3 continuing longer than expected, Yellen could be a key.
It`s notable that over the weekend, the US and five other leading countries struck an agreement with Iran to stop production of near weapons-grade nuclear fuel. In exchange, Iran will receive relief from Western economic sanctions that will deliver an estimated $7 billion in foreign exchange for Tehran.
In Canada, Bank of Canada Governor Stephen Poloz was vocal in saying that the main bank`s view of the nation`s economy is different than that of the Organization of Economic Cooperation and Development (OECD). OECD thinks that the bank should start raising interest rates next year, but Poloz told a Senate committee that there is uncertainty in the outlook. Poloz cited weak inflation and persistently slow growth as factors in the bank not having such a rosy outlook for 2014 and changing its mind on a near term rate hike that it had been saying for about a year was coming soon.
So far, its been a strong 2013 for big board stocks. The TSX Composite has trailed gains by the US markets in 2013, but is still up about 8 percent so far this year. The main Toronto exchange has been held down all year because of a lagging mining sector that has been hit hard by crumbling gold prices. The S&P 500 has gained almost 27 percent to have risen a blistering 165 percent since its lows in 2009.
The Dow made its 40th new high of 2013 on Friday, gaining about 21 percent in the process. The rise for 15,000 to 16,000 was the sixth-fastest 1,000-point move by the Dow ever.
This week is shortened for US markets because of Wall Street being shuttered for the Thanksgiving Day holiday on Thursday and only open until 1 PM ET on Friday. Generally speaking, it`s really only about a half week of activity as traders take off early on Wednesday and don`t return until Monday to enjoy a nice, long weekend.
The Canadian dollar sunk against the US dollar as Canadian inflation slowed more than expected last month. Adding to pressure on the loonie was commentary from Bank of Canada Governor Stephen Poloz, who said that the nation still needs stimulus to support growth as he abandoned a long-held view that the next move in interest rates would be upward. The idea of interest rates staying low or even dropping in Canada caused the currency to fall to its lowest level against the greenback since July 9. On the week, the Canadian dollar lost 0.75%, or $0.007145, meaning next week will begin with one Canadian dollar buying US$0.95097.
Commodity Snapshot:
* Gold futures fell back near June lows, feeling continued pressure from the surprise interest rate cut by the European Central Bank earlier this month and speculation that the US Federal Reserve is going to begin tapering its monetary stimulus plan sooner than later.
The central bank`s money printing plan is generally supportive of gold as it devalues the US dollar, but that has not been so true in 2013 with gold losing about 25 percent so far this year. With the minutes of the latest meeting of Federal Reserve officials being released last week suggesting that tapering could begin as early as December, gold felt pressure as the US dollar initially gained in value. Gold gets technical support at $1,240, making it a point that traders are looking at gold as a buying opportunity as tapering gets priced in.
December contracts were the most actively traded for the week, losing $40.50 per ounce, or 3.15%, to $1,244.10.
* Silver futures also took cues from the minutes of the FOMC meeting, continuing a multi-month downtrend for precious metals. Much like gold, silver loses appeal with a strengthening dollar because commodities are priced in the USD, making it more expensive for traders using foreign currencies. Moreover, economic data showed inflation remaining completely tame in the US, taking the luster off silver as a hedge against inflation, while manufacturing data showed sluggish growth, making traders question future demand for silver for its many industrial uses. December contracts for silver were the most actively traded, declining 86.5 cents, or 4.17 percent, to $19.862 per ounce.
* Copper futures slipped to 3-1/2 month lows ahead of the FOMC meeting minutes, but rebounded fast and hard on Thursday and Friday to regain the losses and then some. The industrial red metal got a lift on stronger German business sentiment and sustained expansion of manufacturing activity in China. Those factors, combined with the USD giving up ground on Friday helped push copper prices to their highest close since November 12. December contracts were the most actively traded on New York`s COMEX exchange during the week; gaining 4.3 cents, or 1.36%, to $3.214 per pound.
* Oil futures bounced on Thursday as economic data suggested a strengthening US economy to finally help the black gold snap a six-week losing streak, despite a modest decline on Friday. Also, for a change, rising inventory levels of crude didn`t come in far greater than expected, even though demand still hasn`t picked-up much. The story between the difference in prices between Nymex crude and Brent crude (the European benchmark oil price) continued to be told, with the spread between the two breaking over $16, marking the widest spread since March. Brent prices are more closely related to developments in the Middle East, where, at the end of trading on Friday, an agreement still had not been met regarding Iran`s nuclear initiatives. January contracts for West Texas Intermediate crude were the most actively traded; advancing $1, or 1.07 percent to $94.84 per barrel on the week.
Equity Market Snapshot:
(All percentages on a weekly basis unless otherwise noted) * Major gold miners were slammed with falling bullion prices.
Kinross Gold (TSX:K, -7.68%), Newmont Mining (TSX:NMC, -7.56%), Barrick Gold (TSX:ABX, -8.94%), Yamana Gold (TSX:YRI, -4.41%), Agnico-Eagle Mines (TSX:AEM, -7.52%) and Goldcorp (TSX:G, -4.29%) all notched significant losses. The gold sector is by far the biggest loser on the TSX this year, down about 47%.
* Also in the metal complex, shares of Ivanhoe Mines Ltd. (TSX:IVN, -3.30%) dropped despite mining promoter Robert Friedland releasing a preliminary economic assessment for a major copper discovery in Congo that he says could be one of the world`s lowest-cost producers at only $1.18 per pound. Ivanhoe is developing the Kamoa project in the Democratic Republic of Congo.
* Major energy plays were mixed with oil bouncing around. Suncor Energy (NYSE:SU, +0.67%), Chevron Corp. (NYSE:CVX, +3.31%), Canadian Natural Resources (NYSE:CNQ, +1.66%) and Cenovus Energy (NYSE:CVE, +0.99%) added points. Talisman Energy (NYSE:TLM, -2.91%) and Exxon Mobil (NYSE:XOM, -0.27%) were lower, while Imperial Oil Ltd.
(NYSE:IMO, +0.00%) was flat. XLE, the Energy Select Sector SPDR, rose 0.65 percent, its third consecutive weekly gain.
* The biggest of banks in the US provided market strength. Wells Fargo & Co. (NYSE:WFC, +1.88%), Goldman Sachs Group (NYSE:GS, +2.25%), Citigroup (NYSE:C, +3.99%), Bank of America (NYSE:BAC, +4.83%) and JPMorgan Chase (NYSE:JPM, +4.72%)rose, while UBS AG (NYSE:UBS, -1.73%) shed some points. XLF (NYSE:XLF, +1.70%), the financials select sector SPDR that tracks the financial stocks in the S&P 500, climbed for the third week in a row.
* Federal authorities hit JPMorgan with a $13-billion settlement related to the big bank`s past mortgage practices. Investors didn`t seem to mind the big fine, for which JPM said it had money set aside already, as it finally settles the dispute.
* Canada`s biggest banks mostly advanced. Toronto-Dominion Bank (TSX:TD, +0.41%), Bank of Nova Scotia (TSX:BNS, +0.81%), Canadian Imperial Bank of Commerce (TSX:CM, +0.48%), Bank of Montreal (TSX:BMO, +0.11%) and Royal Bank of Canada (TSX:RY, +0.28) all moved higher.
National Bank of Canada (TSX:NA, -0.25%) finally edged lower after 14 straight weeks of advancing.
* Boeing (NYSE:BA, -0.08%) edged lower for only its second losing week in the past 12 weeks, despite saying that it sold more than $95 billion of its new 777X at the Dubai air show. Boeing has been a driver of the Dow, rising almost 50 percent in the last six months.
* Embattled retailer J.C. Penney (NYSE:JCP, -1.77%) announced smaller sales and a widening loss in the third quarter, but didn`t nosedive because it said that comparable sales improved to start the fourth quarter. S&P Dow Jones Indices said that J.C. Penney will be removed from the S&P 500 upon the close of trading Nov. 29 because of its small market cap.
* The Supreme Court of Canada upheld Ontario 2010 rules prohibiting big pharmacies from selling their own private-label generic drugs, which it says ensures transparent drug pricing. Shoppers Drug Mart (TSX:SC, +0.36%) and Rexall had challenged the regulation as they sought to sell their own lower-priced generic versions of brand name drugs.
* Shares of Biogen Idec (NASDAQ:BIIB, +16.54%) jumped after the drugmaker won 10 years of market exclusivity in the European Union with its new multiple sclerosis drug Tecfidera. Regulators at the European Medicines Agency determined that dimethyl fumarate in Tecfidera is a “new active substance,” an important designation to fend off generics.
* Fairfax Financial Holdings (TSX:FFH, -1.01%) said it inked a deal to buy 51% of Keg Restaurants, the operator of the Keg steakhouse chain restaurants. Financial terms weren`t disclosed.
* Charter Communications (NYSE:CHTR, +4.64%) was reported to be close to a deal with lenders on financing for a bid to buy Time Warner Cable (NYSE:TWC, +9.96%).
* Sears Canada Inc. (TSX:SCC, +6.48%) stock popped as the retailer said that it will pay its shareholders an extraordinary dividend of $5 per share. Severance and restructuring costs hurt profits in the latest quarter, with the company reporting a net loss of $48.8 million, or 48 cents per share. The stock has risen in eight straight weeks. Sears Canada is 51-percent-owned by Sears Holdings Corp.
(NYSE:SHLD, -4.74%).
* Nektar Therapeutics (NASDAQ:NKTR, +3.87%) said on Tuesday that the U.S. Food and Drug Administration has accepted AstraZeneca`s (NYSE:AZN, 5.09%) New Drug Application for naloxegol, an oral drug in development for patients with opioid-induced constipation from taking opioids for non-cancer related pain, triggering a $70 million milestone payment to Nektar.
* Shares of Patheon Inc. (TSX:PTI, +63.19%) surged after the company received a friendly takeover offer from Dutch chemical maker Royal DSM NV and private equity firm JLL Partners that values the drug company at about $1.4 billion, or $9.32 per share. JLL is Patheon`s largest shareholder.
* Yahoo (NASDAQ:YHOO, +2.88%) shares rose after the tech company said that it is raising its stock buyback by another $5 billion.
* Intellipharmaceutics International Inc. (NASDAQ:IPCI, +97.83%) exploded after the Toronto-based generic drug maker, which also trades on the Toronto Stock Exchange (TSX:I, +98.45%), said that the FDA granted approval of the company’s dexmethylphenidate hydrochloride extended-release capsules for the 15 and 30 mg strengths. The drug, Intellipharmaceutics first FDA approved, is a generic of Novartis AG’s (NYSE:NVS, +0.69%) Focalin XR, which is approved for the treatment of Attention Deficit Hyperactivity Disorder.
Weekly Indices Results:
The S&P TSX Composite Index edged lower, snapping a two-week winning streak by slipping 4.23 points, or 0.03%, to 13,478.34. The TSX-Venture Composite Index fell for the fourth straight week, carving off 1.92 points, or 0.21%, to 932.15.
In the States, the Dow Jones Industrial Average rose for the seventh straight week, making new record highs again by gaining 103.07 points, or 0.65%, to 16,064.77. The much-broader S&P 500 posted new all-time highs as well; advancing 6.58 points, or 0.37%, to close at 1,804.76.
The tech-rich NASDAQ Composite nipped higher; taking-on 5.68 points, or 0.14%, to 3,991.65.
Canadian Economic Data:
* Statistics Canada reported that the Consumer Price Index rose 0.7% in the 12 months to October, its slowest pace in five months, following a 1.1% increase in September. Economists expected a 0.8% increase. This slower rise was mainly attributable to a year-over-year decline in gasoline prices. Gasoline prices fell 4.3% in October compared with the same month a year earlier. This followed a 0.3% decrease in the 12 months to September. The slow rise in inflation reinforces the Bank of Canada`s neutral rate policy, although BoC Governor Stephen Poloz hinted at a reduction in interest rates.
* Retail sales rose 1.0% to $40.7 billion in September, a third consecutive monthly increase. Economists only expected an increase of 0.3%. This advance was largely attributable to higher sales at motor vehicle and parts dealers (+4.1%). Gains were observed in 6 of the 11 subsectors, accounting for 55% of retail trade. Excluding receipts at motor vehicle and parts dealers, sales were relatively flat. In volume terms, retail sales were up 1.0%. Gasoline station sales rose 0.8%, the fourth increase in five months.
* Following three months of little change, the number of people receiving regular Employment Insurance benefits decreased slightly in September (-1.4% or -7,100) to 503,800. Compared with September 2012, the number of beneficiaries was down 8.8%. However, the slight monthly decrease nationally did not mirror variations observed at the provincial level, as British Columbia (-8.5%) and Ontario (-8.3%) posted notable declines in September, while Saskatchewan (-1.2%) and Alberta (-1.1%) exhibited smaller declines. At the same time, there were more beneficiaries in Quebec (+5.6%) and Manitoba (+4.0%), as well as in the Atlantic provinces.
* Wholesale sales were up for the third month in a row in September, rising 0.2% to $49.8 billion. Economists predicted a 0.3% gain. Sales increased in four of the seven subsectors, accounting for 45% of wholesale sales. In volume terms, wholesale sales were up 0.2%. The largest gain in dollar terms was in the miscellaneous subsector (+1.3%). The increase occurred primarily because of a 4.3% advance in the agricultural supplies industry, following three consecutive monthly declines. The motor vehicle and parts subsector rose 0.6%, its fourth increase in five months.
* Foreign investment in Canadian securities strengthened to $8.4 billion in September, the highest inflow of funds in five months, and was focused on Canadian equities. Canadian investors reduced their holdings of foreign securities in the month by $1.5 billion, including both debt and equity securities. Foreign acquisitions of Canadian equities reached $10.8 billion in September, the largest such investment since September 2009. This followed a divestment of $2.2 billion in August.
This week, major economic data will include the Industrial Product Price Index and Raw Materials Price Index on Thursday; and GDP and the Bank of Canada Rate Announcement on Friday.
U.S. Economic Data:
* The Labor Department said that the Consumer Price Index dropped by 0.1% in October, its first decline in six months, following a gain of 0.2% in September. Economists were expecting no gain for the month.
The so-called “core” CPI, which excludes the volatile food and energy indexes, rose by 0.1%, in line with expectations. Compared to a year earlier, the CPI was up by 1.0%, still far below the Federal Reserve`s goal of 2.0%, indicating that inflation is still of no concern at this time. In the past 12 months the core CPI has advanced 1.7%.
* The Labor Department also reinforced the idea of benign inflation with a report showing the the Producer Price Index slipped 0.2% in October, following a 0.1% decline in September. The PPI, which measures prices received by US farms, factories and refineries, was in line with expectations. Over the past year, the PPI has increased by 0.3%. Core PPI, which excludes the volatile food and energy segments, rose 0.2% after a 0.1% increase in September.
* The Commerce Department reported that retail sales climbed 0.4% in October, following a flat month of September. The advance was far above economist calls for a 0.1% rise and indicate that the 16-day partial shutdown of the government during the month had little to no impact on consumers. Retail sales not including automobiles, gasoline or building materials, rose 0.5% during October, following a 0.3% rise in September. Economists predict that the rise in consumer spending during October has the economy on pace for a 2% increase for all of 2013.
* The National Association of Realtors reported that existing home sales contracted for the second consecutive month in October, declining 3.2% to a seasonally adjusted rate of 5.12 million.
Compared to October 2012, sales were up 12.8%. The NAR cited tight inventories and “the erosion of buying power” as reasons for the dampening of existing home sales. The national median of prices was $199,500, flat from September, but up 12.8% from last October, marking the eleventh straight month of double-digit price increases.
Inventory equals a 5-month supply of homes at the current sales pace.
* The Labor Department said that initial jobless claims, a rough gauge of weekly layoffs, dropped by 21,000 to a seasonally adjusted 323,000 for the week ended November 16 from a revised 344,000 (up from 339,000) the week prior. Economists were expecting claims to decline only to 335,000. The four-week moving average, a less volatile measure of the labor market, fell to 338,500 from a revised 345,250 the week earlier. In general, economists view claims under 350,000 as a sign of modest growth in the jobs market.
* The Philadelphia Fed manufacturing index plunged to 6.5 in November from 19.8 in October, its lowest reading since May, raising concerns over the strength of the manufacturing sector. Economists expected a 14.5 reading. On the bright side, the index has been in positive territory for six straight months. Readings above 0 indicate expansion in manufacturing activity. The main subindexes of general activity, new orders, shipments and employment were all in positive territory, but lower than September`s readings, meaning that expansion is happening, just at a slower pace.
This week, data in the States will include Housing Starts on Tuesday; Durable Goods Orders and Initial Jobless Claims on Wednesday (moved up from Thursday because of Thanksgiving).
Company Spotlight News:
In spotlight news, Fresh Start Private Management, Inc. (OTCQB:CEYY), a leader in alcohol treatment and rehabilitation programs, announced the establishment of an advisory board. The advisory board will be providing informed guidance to company directors and management.
Dr. George Fallieras and Dr. Lynn Puana join the advisory board as practicing physicians. Dr. Fallieras is board certified in Internal Medicine and Pediatrics, and is the current medical director of Start Fresh Recovery. He is also the Hospitalist Director at Good Samaritan Hospital in LA, a volunteer on medical missions, and is a frequent contributor to various news outlets. Dr. Puana is CEO and Co-Owner of Puana Pain Clinic where she has extensive experience working with addicts. She is helping Fresh Start Private with data collection for future publications that will be written with her husband, Rudolph Puana, MD. Dr. Puana has been published in several peer-reviewed medical journals.
Tom Welch joins the advisory board with experience in healthcare management and recruiting. Joan Pedicini, CEO of Start Fresh Recovery Southwest, also joins the team with a background in accounting. Bill Ferguson rounds out the advisory board and is a practicing attorney in LA for Fowler & Good. For more in-depth backgrounds on each, please read yesterdy`s Form 8-K filing.
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