Month: May 2022

Dear Friends,

Tangents:
Walt Whitman, poet, b.1819.

1955: U.S. Supreme Court orders school integration.
1790: First US copyright law passed.
1994: The United States announced it was no longer aiming long-range nuclear missiles at targets in the former Soviet Union.  Go to article »

‘Mona Lisa’ gets caked by man pretending to be disabled.  Check out this bizarre occurrence. Thank goodness for bulletproof (and cake-proof) display cases.

Cannes Film Festival 2022:  Here is the list of winners… and the most stunning red carpet outfits that we Cannes barely handle!

Vietnam’s new glass bridge sets Guinness World Record.  Would you walk across this massive glass bridge? It is said to be strong enough to support up to 450 people at a time (but that’s still not enough to convince me).

The French meal Julia Child called life-changing.  Julia Child, the legendary cookbook author, called this fish dish “perfection.” Lucky for you, we’ve included the recipe here so you can try it yourself. 

United Nations climate scientists say it’s “now or never” to stop catastrophic temperature rises and a breakdown of the climate systems on which our way of life depends. Reports of bomb-like blizzards and searing droughts paint a terrifying picture of the possible reality of climate change. But are we actually witnessing the weather getting worse?   Unfortunately, the answer is yes. 
Full Story: Live Science (5/31) 

PHOTOS OF THE DAY

A parrot breeder and his birds are seen at the Damai Perdana hill during World Parrot Day
CREDIT: Anadolu Agency/Getty Images

Japan’s Kawasaki Heavy Industries demonstrates a goat-like robot that can carry baggage and goods. The firm believes robots will help with labour shortages in the country’s ageing society
CREDIT: Kawasaki Heavy Industries, Ltd./Reuters

Rut Larsson, a 103-year-old Swedish woman from Mjolby, lands after jumping in tandem with Joackim Johansson from Linkoping’s parachute club
CREDIT: Jeppe Gustafsson/EPA

Market Closes for May 31^st, 2022

Market Index	Close	Change
Dow Jones	32990.12	-222.84
		-0.67
S&P 500	4132.15	-26.09
		-0.63
NASDAQ	12081.39	-49.74 -0.41
TSX	20729.34	-190.06
		-0.91%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27279.80	-89.63
		-0.33%
HANG SENG	21415.20	+291.27
		+1.38%
SENSEX	55566.41	-359.33
		-0.64%
FTSE 100*	7607.66	+7.60 +0.10%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.891	2.826
CND. 30 Year Bond	2.846	2.800
U.S.    10 Year Bond	2.8441	2.7378
U.S. 30 Year Bond	3.0451	2.9635

Currencies

BOC Close	Today	Previous
Canadian $	0.7905	0.7901
US $	1.2650	1.2657
Euro Rate 1 Euro=		Inverse
Canadian $	1.3578	0.7365
US $	1.0733	0.9317

Commodities

Gold	Close	Previous
London Gold Fix	1854.95	1851.80
Oil
WTI Crude Future	114.67	115.07

Market Commentary:
On this day in 1974, the first money-market mutual fund with check writing privileges, Fidelity Daily Income Trust, opened for business. It was a new weapon in mutual funds’ battle with banks: Instead of having to wait seven days to receive a redemption, investors could use a mutual fund just like a checking account—and the fund, Fidelity’s first no-load offering, raked in more than $800 million in its first ten months.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities fell for the first time in eight days, with energy and cannabis stocks leading losses.
The S&P/TSX Composite fell 0.9% at 20,729.34 in Toronto.
The move was the biggest one-day drop since falling 1.9% on May 18 and follows the previous session’s increase of 0.8%.
Canadian Natural Resources Ltd. contributed the most to the index decline, decreasing 3.8%.
Lithium Americas Corp. had the largest drop, falling 14.6%.
Today, 159 of 239 shares fell, while 77 rose; 10 of 11 sectors were lower, led by energy stocks.
Insights
* This month, the index was little changed
* The index advanced 5.1% in the past 52 weeks. The MSCI AC Americas Index lost 3.4% in the same period
* The S&P/TSX Composite is 6.7% below its 52-week high on April 5, 2022 and 6.4% above its low on May 12, 2022
* The S&P/TSX Composite is up 2.2% in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.1 on a trailing basis and 13 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.35t
* 30-day price volatility fell to 21.12% compared with 21.15% in the previous session and the average of 18.52% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -85.8450| -2.1| 3/31
* Materials | -36.3457| -1.4| 10/41
* Financials | -21.0976| -0.3| 15/13
* Industrials | -20.3812| -0.9| 8/22
* Information Technology | -18.6547| -1.6| 3/13
* Communication Services | -3.6865| -0.4| 1/5
* Consumer Staples | -2.2805| -0.3| 5/6
* Utilities | -2.2654| -0.2| 7/9
* Health Care | -1.9752| -2.1| 2/6
* Consumer Discretionary | -0.4387| -0.1| 7/7
* Real Estate | 2.9208| 0.5| 16/6
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Canadian Natural Resources | -26.7300| -3.8| 77.1| 56.6
* Suncor Energy | -16.5600| -3.2| 61.2| 60.8
* Enbridge | -12.8200| -1.6| -4.0| 18.3
* Dollarama | 2.0850| 1.5| 104.5| 15.9
* Bank of Nova Scotia| 2.8980| 0.4| 39.0| -4.2
* Nutrien | 15.9900| 3.5| 264.0| 30.0
US
By Isabelle Lee
(Bloomberg) — A tumultuous May for markets ended almost exactly where it started in equities, with a late-session drop Tuesday depositing the S&P 500 less than a point higher than its level a month ago.
It was an ironic end to a month that saw volatility surge and debates rage around inflation, the Federal Reserve’s plan to subdue it and the impact on the economy.
The S&P 500 was fell 0.6% on Tuesday, bringing its monthly return to virtually zero.
During the month of May, the benchmark index surged more than 8% after falling within points of a 20% drop from a record, signifying a bear market.
Ten-year Treasury yields climbed 12 basis points to 2.85%, just below where they started the month.
West Texas Intermediate oil was little changed, leaving it 10% higher in the month.
And Bitcoin held above $31,000, down 17% in May.
Equities began the day lower on worries inflation was proving more persistent, intensifying the debate over how quickly central banks will raise interest rates.
Euro-zone consumer prices jumped 8.1% to a record from a year earlier in May.
Meanwhile, WTI crude oil pared gains from a partial ban on Russian oil by the European Union.
The dollar advanced.
Fears central-bank rate hikes may tip the economy into a recession are keeping investors watchful as rising food and energy costs squeeze consumers.
May saw nearly unprecedented volatility in stocks as the S&P 500 plunged more than 3% three different times and capped its longest streak of weekly losses since 2001 only to surge at the month’s end.
The moves come amid skepticism about whether the market is near a trough and as volatility stays elevated.
Swaps show traders have almost fully priced in two half-point rate increases in June and July, with even odds of a third such hike in September.
“When you throw-in the likelihood that earnings estimates are going to have go be cut in a significant way as we move through the summer, it emboldens our view that the stock market will have to see lower-lows before the ultimate bottom for this decline is reached,” Matt Maley, chief market strategist at Miller Tabak + Co., said.
Federal Reserve Chair Jerome Powell is meeting President Joe Biden in a rare Oval office meeting on Tuesday to discuss inflation ahead of US payroll numbers later this week.
The meeting follows comments by Fed Governor Christopher Waller on Monday, suggesting the Fed should keep raising rates in half-percentage point steps until inflation is easing back toward the
central bank’s goal.
“It’s times like these when investors need a crystal ball,” wrote LPL Financial strategists Jeff Buchbinder and Ryan Detrick. “We fully acknowledge how tough it is to see the bull case for stocks right now, and a retest of recent lows is certainly possible, but this week we lay out the bull case for the second half of the year. It starts with inflation.”
Among individual stock moves, Deutsche Bank AG slipped after the lender and its asset management unit had their Frankfurt offices raided by police.
Unilever Plc jumped as activist investor Nelson Peltz joined its board.
And US-listed Chinese stocks — including Alibaba Group Holding Ltd. — climbed, putting the shares on track to wipe out monthly losses as easing in lockdown measures in major cities and better-than-expected economic data reassured investors. 
Here are some key events to watch this week:
* The Federal Reserve is set to start shrinking its $8.9 trillion balance sheet Wednesday
* The Fed releases its Beige Book report on regional economic conditions Wednesday
* New York Fed President John Williams, St. Louis Fed President James Bullard speak at separate events Wednesday
* OPEC+ virtual meeting Wednesday
* Cleveland Fed President Loretta Mester discusses the economic outlook Thursday
* US May employment report Friday
* The UN’s Food and Agriculture Organization releases its monthly food price index at a time of maximum concern about global supplies on Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.6% as of 4:05 p.m. New York time
* The Nasdaq 100 fell 0.3%
* The Dow Jones Industrial Average fell 0.7%
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.4% to $1.0735
* The British pound fell 0.4% to $1.2604
* The Japanese yen fell 0.9% to 128.69 per dollar
Bonds
* The yield on 10-year Treasuries advanced 12 basis points to 2.85%
* Germany’s 10-year yield advanced seven basis points to 1.12%
* Britain’s 10-year yield advanced 11 basis points to 2.10%
Commodities
* West Texas Intermediate crude fell 0.1% to $114.94 a barrel
* Gold futures fell 1% to $1,839.10 an ounce
–With assistance from John Viljoen and Andreea Papuc.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Let me tell you the secret that has led me to my goal.  My strength lies solely in my tenacity. –Louis Pasteur, 1822-1895.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
1783: First U.S. newspaper published.
Peter the Great, Russian Czar, b. 1672.

2011 Germany announced plans to abandon nuclear power over the next 11 years, outlining an ambitious strategy in the wake of Japan’s Fukushima disaster to replace atomic power with renewable energy sources.  Go to article »

Stonehenge is surrounded by grassy vistas nowadays, but about 10,000 years ago, the landscape had pits likely dug by prehistoric hunters trying to trap game, a new study finds.  A team of researchers found evidence of these pits while surveying the area around Stonehenge, according to the study, published online on May 9 in the Journal of Archaeological Science.
Full Story: Live Science (5/19)

Archaeological revelations

Turkey’s temple mounds illuminate the birth of civilisation

The finds at Gobekli Tepe and Karahan Tepe have upended conventional wisdom. –from The Economist.

PHOTOS OF THE DAY

Sarcophaguses that are about 2,500 years old on display from the newly discovered burial site near Egypt’s Saqqara necropolis
CREDIT: Mohamed Abd El Ghany/Reuters

Corgi Charles and friends enjoy a spot of tea at an award-winning doggy daycare company, Bruce’s
CREDIT: Ben Stevens/PinPep/Rex/Shutterstock

Tracey Emin’s first Scottish show since 2008, I Lay Here For You, offers an encounter with love and hope set against the informal woodland of Jupiter Artland. The exhibition will feature new work by the artist reflecting on the possibility of love after hardship
CREDIT: Murdo MacLeod/The Guardian

Market Closes for May 30^th, 2022

Market Index	Close	Change
Dow Jones	Market Closed
S&P 500	Market Closed
NASDAQ	Market Closed
TSX	20919.40	+170.82
		+0.82%

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27369.43	+587.75
		+2.19%
HANG SENG	21123.93	+426.57
		+2.06%
SENSEX	55925.74	+1041.08
		+1.90%
FTSE 100*	7600.06	+14.60 +0.19%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.826	2.790
CND. 30 Year Bond	2.800	2.787
U.S.    10 Year Bond	Market Closed	2.7378
U.S. 30 Year Bond	Market Closed	2.9635

Currencies

BOC Close	Today	Previous
Canadian $	0.7901	0.7860
US $	1.2657	1.2723
Euro Rate 1 Euro=		Inverse
Canadian $	1.3645	0.7329
US $	1.0780	0.9276

Commodities

Gold	Close	Previous
London Gold Fix	1851.80	1848.25
Oil
WTI Crude Future	Market Closed	115.07

Market Commentary:
Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. –Sir John Templeton, 1912-2008.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities extended their rally to close higher for the seventh straight day, the longest winning streak in seven months, as investors bought riskier technology and consumer discretionary stocks.
The S&P/TSX Composite rose 0.8%, or 170.82, to 20,919.40 in Toronto on Monday.
That’s the highest closing level since May 4.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.4%. Hut 8 Mining Corp. had the largest increase, rising 11.3%.
Today, 176 of 239 shares rose, while 56 fell; 10 of 11 sectors were higher, led by energy stocks.
US markets were closed for a holiday. 
Insights
* This month, the index rose 0.8%
* The index advanced 5.4% in the past 52 weeks. The MSCI AC Americas Index lost 2.8% in the same period
* The S&P/TSX Composite is 5.8% below its 52-week high on April 5, 2022 and 7.4% above its low on May 12, 2022
* The S&P/TSX Composite is up 3.6% in the past 5 days and rose 0.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.1 on a trailing basis and 13 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.32t
* 30-day price volatility rose to 21.15% compared with 20.95% in the previous session and the average of 18.39% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 65.8452| 1.7| 31/1
* Financials | 53.2196| 0.8| 24/4
* Information Technology | 24.7860| 2.2| 15/1
* Consumer Discretionary | 11.2714| 1.7| 13/0
* Consumer Staples | 6.2479| 0.8| 9/2
* Industrials | 5.9227| 0.3| 21/8
* Materials | 4.7387| 0.2| 34/15
* Communication Services | 3.2126| 0.3| 4/3
* Real Estate | 1.6369| 0.3| 19/4
* Health Care | 1.0396| 1.1| 5/3
* Utilities | -7.1035| -0.7| 1/15
================================================================
| | |Volume VS| YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move|% Change | (%) | (%)
================================================================
* Canadian Natural Resources | 16.4500| 2.4| -71.4| 62.8
* Shopify | 13.5200| 3.7| -71.7| -72.1
* TD Bank | 11.5400| 1.0| -66.6| -0.1
* * Rogers Communications | -1.6380| -1.0| -8.0| 7.8
* Canadian Pacific | -2.7480| -0.5| -65.8| -0.9
* Nutrien | -8.2630| -1.8| -52.9| 25.6
US
US markets are closed for Memorial Day holiday.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Mighty rivers can easily be crossed at their source. –Publilius Syrus, 85-43 BC.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday!

May 27, 1930: Scotch tape patented.
.
1905: Japanese fleet destroys the Russian East Sea fleet in the Battle of Tsushima, the only decisive clash between modern steel battleships in history.
1937: The Golden Gate Bridge connecting San Francisco and Marin County, Calif., opened. Go to article »

Hubert  H. Humphrey, politician, b. 1911.
Isadora Duncan, dancer, b. 1878.
Rachel Carson, author, b. 1907.

There’s a real-life yellow brick road forming in Ghana.  This artist used pieces of yellow plastic to create a powerful work of art reminiscent of “The Wonderful Wizard of Oz.”

Geetanjali Shree becomes first Indian author to win International Booker prize.  Well deserved! This inspiring woman has added a new prestigious literary award to her list of accomplishments.

Rat sends dog park into a frenzy.  A rat was being hounded by a bunch of dogs, then a hunky hero stepped in to save the day. Watch the chaos unfold!

 Mercedes plans to shock the auto world with the next incarnation of its Maybach brand.

PHOTOS OF THE DAY

A woman pauses for thought in the Pechersk Lavra monastery. Following Russia’s retreat from the Ukrainian capital, signs of normal life have returned to Kyiv, with residents taking advantage of shortened curfew hours, businesses reopening, and foreign countries promising to return their diplomats
CREDIT: Christopher Furlong/Getty Images

Maritime workers gather for a group photograph in Times Square as part of Fleet Week celebrations in New York. Fleet Week is a week-long celebration of the sea services that aims to provide an opportunity for members of the public to meet sailors, marines and coastguard personnel through various events
CREDIT: Ed Jones/AFP/Getty

Chestnut tiger butterflies take to the skies at Himeshima Island
CREDIT: Asahi Shimbun/Getty Images

Market Closes for May 27^th, 2022

Market Index	Close	Change
Dow Jones	33212.96	+575.77
		+1.76%
S&P 500	4158.24	+100.40
		+2.47%
NASDAQ	12131.13	+390.48 +3.33%
TSX	20748.58	+261.40
		+1.05%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26781.68	+176.84
		+0.66%
HANG SENG	20697.36	+581.16
		+2.89%
SENSEX	54884.66	+632.13
		+1.17%
FTSE 100*	7585.46	+20.54 +0.27%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.790	2.796
CND. 30 Year Bond	2.787	2.815
U.S.    10 Year Bond	2.7378	2.7469
U.S. 30 Year Bond	2.9635	2.9819

Currencies

BOC Close	Today	Previous
Canadian $	0.7860	0.7828
US $	1.2723	1.2775
Euro Rate 1 Euro=		Inverse
Canadian $	1.3658	0.7323
US $	1.0735	0.9316

Commodities

Gold	Close	Previous
London Gold Fix	1848.25	1847.20
Oil
WTI Crude Future	115.07	114.09

Market Commentary:
On this day in 1794, Cornelius Vanderbilt was born on a farm in Staten Island, N.Y. He started off in the steamboat business with $100, breaking Robert Fulton’s monopoly on steamboat traffic in the Hudson River by charging 75% less. He then moved into railroads, building the New York Central into one of the world’s dominant businesses, and died as the world’s richest man in 1877, with a $105 million fortune.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities posted their longest winning streak since March as risk-on investors bought up information technology, real-estate and consumer discretionary stocks.
The S&P/TSX Composite rose for the sixth day, climbing 1.1%, or 216.4 to 20,748.58 in Toronto, marking the index’s biggest move since May 17.
Brookfield Asset Management Inc. contributed the most to the index gain, increasing 4.2%.
Hut 8 Mining Corp. had the largest percentage increase, rising 8.1%.
Today, 184 of 239 shares rose, while 53 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* In the past year, the index had a similar or greater gain 19 times. The next day, it advanced 10 times for an average 0.7% and declined nine times for an average 0.9%
* This month, the index was little changed * So far this week, the index rose 2.7%, heading for the biggest advance since the week ended Feb. 5
* The index advanced 4.9% in the past 52 weeks. The MSCI AC Americas Index lost 2.7% in the same period
* The S&P/TSX Composite is 6.6% below its 52-week high on April 5, 2022 and 6.5% above its low on May 12, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16 on a trailing basis and 12.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.29t
* 30-day price volatility rose to 20.95% compared with 20.63% in the previous session and the average of 17.54% over the past  month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 85.7380| 1.3| 23/5
* Energy | 43.1075| 1.1| 30/4
* Industrials | 30.5560| 1.3| 27/3
* Information Technology | 29.2553| 2.7| 16/0
* Real Estate | 9.8202| 1.8| 23/0
* Consumer Staples | 9.7609| 1.2| 10/1
* Consumer Discretionary | 9.2868| 1.4| 13/1
* Materials | 4.7371| 0.2| 29/21
* Communication Services | 3.9982| 0.4| 5/2
* Health Care | -3.9181| -4.1| 3/5
* Utilities | -5.9501| -0.6| 5/11
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Brookfield Asset Management | 26.1000| 4.2| 68.7| -15.8
* Royal Bank of Canada | 23.5500| 1.9| -22.5| -2.5
* Shopify | 16.1200| 4.6| -34.9| -73.1
* Canadian Western Bank | -1.9670| -9.6| 609.9| -17.3
* Barrick Gold | -2.3240| -0.7| 61.1| 8.9
* Nutrien | -3.6390| -0.8| 109.3| 27.9
US
By Abigail Moses
(Bloomberg) — Stocks continued to rebound from a steep rout that drove the market down for seven straight weeks, with rebalancing from institutional investors potentially lifting equities at the end of the month.
The S&P 500 wiped out its May losses and posted its biggest weekly gain since November 2020.
Global stock funds saw their largest inflows in 10 weeks, led by US shares, according to a Bank of America Corp.’s note citing EPFR data.
The Nasdaq 100 outpaced major benchmarks, with Apple Inc. and Tesla Inc. up more than 4%.
Dell Technologies Inc. surged as revenue topped estimates.
The dollar fell, while Treasuries fluctuated.
US markets will be closed Monday for a holiday.
Volatility gripped markets this year on fears that hawkish central banks will tip the economy into a recession, with analysts remaining split on whether equities have found a bottom.
Morgan Stanley and Bank of America recently said there may be more losses to come, while BlackRock Investment Institute cut developed-market shares to neutral.
Meantime, Citigroup Inc. strategists recommended stepping back into stocks, particularly in Europe and emerging markets, on their appealing valuations.
“It is fair at this point to start doing some bargain-hunting,” Lori Calvasina, head of US equity strategy at RBC Capital Markets, told Bloomberg Television. “If you can get people more comfortable in the fundamental narrative going
forward, I think that stocks are cheap enough to buy. Are valuations a reason to buy on their own? No, not yet.”
After a major outperformance versus growth shares this year, value stocks are starting to lose their appeal as bond yields peak and the economic recovery grinds to a halt, strategists at Credit Suisse Group AG and Bank of America
warned.
Value companies have been largely shielded from this year’s market selloff as investors turned to cheaper equities in search of shelter amid fears of rising rates.
US consumer sentiment deteriorated further in late May to a fresh decade low as escalating concerns over inflation dimmed the outlook for the economy.
A separate report showed inflation-adjusted consumer spending rose in April by the most in three months, indicating households were holding up in the face of persistent price pressures by dipping into savings.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 2.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 3.3%
* The Dow Jones Industrial Average rose 1.8%
* The MSCI World index rose 2.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro was little changed at $1.0733
* The British pound rose 0.2% to $1.2631
* The Japanese yen was unchanged at 127.12 per dollar
Bonds
* The yield on 10-year Treasuries declined one basis point to 2.74%
* Germany’s 10-year yield declined four basis points to 0.96%
* Britain’s 10-year yield declined five basis points to 1.92%
Commodities
* West Texas Intermediate crude rose 0.9% to $115.14 a barrel
* Gold futures rose 0.2% to $1,857.10 an ounce
–With assistance from Andreea Papuc, Isabelle Lee and Peyton Forte.
Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

The young man knows the rules, but the old man knows the exceptions. –Oliver Wendell Holmes, 1809-1894.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:  Happy Friday Eve.
1805: Napoleon Bonaparte is crowned King of Italy.
1805: Lewis & Clark see Rocky Mountains.

John Wayne, actor, b. 1907.
1908:The first major oil strike in the Middle East took place as engineers working for British entrepreneur William Knox D’Arcy hit a gusher in Masjid-i-Suleiman in present-day Iran. Go to article »

New film can pull drinking water from desert air.

Lidar reveals massive ancient settlements beneath the Amazon.

Which dinosaurs lived in your town?

PHOTOS OF THE DAY
Service personnel walk past a couple dancing in Times Square, as part of Fleet Week celebrations, a week-long tribute to sea services
Photograph: Ed Jones/AFP/Getty Images
Le Mont Saint-Michel, France Tightrope walker Nathan Paulin walks on a slackline.
Photograph: Damien Meyer/AFP/Getty Images

A screen grab taken from a video released by conservationists shows a leopard at an unspecified location. The Anatolian leopard was last seen in the country in 1974
Photograph: Anadolu Agency/Getty Images
Market Closes for May 26^th, 2022

Market Index	Close	Change
Dow Jones	32637.19	+516.91
		+1.61%
S&P 500	4057.84	+79.11
		+1.99%
NASDAQ	11740.65	+305.91 +2.68%
TSX	20532.18	+148.43
		+0.73%

​​​​​​​

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26604.84	-72.96
		-0.27%
HANG SENG	20116.20	-55.07
		-0.27%
SENSEX	54252.53	+503.27
		+0.94%
FTSE 100*	7564.92	+42.17 +0.56%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.796	2.775
CND. 30 Year Bond	2.815	2.773
U.S.    10 Year Bond	2.7469	2.7452
U.S. 30 Year Bond	2.9819	2.9691

 

Currencies

BOC Close	Today	Previous
Canadian $	0.7828	0.7802
US $	1.2775	1.2817
Euro Rate 1 Euro=		Inverse
Canadian $	1.3704	0.7297
US $	1.0727	0.9322

Commodities

Gold	Close	Previous
London Gold Fix	1847.20	1867.10
Oil
WTI Crude Future	114.09	112.58

Market Commentary:
On this day in 1896, the Dow Jones Industrial Average was first published. Its 12 initial members were the great industrial giants of the time: American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennessee Coal & Iron, U.S. Leather and U.S. Rubber. The index’s value that day: 40.94.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities climbed for a fifth straight day as risk-on investors bought up cannabis, information technology and consumer discretionary stocks in a broader retail and tech rebound.
The S&P/TSX Composite rose 0.7%, or 148.43 to 20,532.18, in Toronto, for the index’s biggest move since rising 1.4% on May 17.
Toronto-Dominion Bank rose on an earnings beat and contributed the most to the index gain, increasing 1.6%.
Lightspeed Commerce Inc. had the largest percentage increase, rising 10.7%.
Today, 176 of 239 shares rose, while 60 fell; 8 of 11 sectors were higher, led by financial stocks.
Insights
* This month, the index fell 1.1%
* So far this week, the index rose 1.7%, heading for the biggest advance since the week ended March 18
* The index advanced 4% in the past 52 weeks. The MSCI AC Americas Index lost 4.9% in the same period
* The S&P/TSX Composite is 7.6% below its 52-week high on April 5, 2022 and 5.4% above its low on May 12, 2022
* The S&P/TSX Composite is up 2.1% in the past 5 days and fell 0.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.9 on a trailing basis and 12.8 times estimated earnings of  its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.26t
* 30-day price volatility rose to 20.63% compared with 20.56% in the previous session and the average of 17.18% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 55.7888| 0.9| 25/3
Industrials | 40.0182| 1.8| 29/1
Energy | 26.4924| 0.7| 27/7
Information Technology | 25.1660| 2.4| 14/2
Consumer Discretionary | 11.4435| 1.8| 14/0
Consumer Staples | 6.9507| 0.9| 10/1
Health Care | 3.2960| 3.5| 8/0
Real Estate | 2.1497| 0.4| 12/10
Utilities | -0.8631| -0.1| 7/9
Communication Services | -3.2006| -0.3| 3/4
Materials | -18.8187| -0.7| 27/23
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
TD Bank | 18.4400| 1.6| 3.0| -1.8
Shopify | 17.2200| 5.2| -26.0| -74.2
Brookfield Asset Management | 14.2500| 2.4| 1.7| -19.2
Agnico Eagle Mines | -5.2530| -2.4| 5.1| 2.0
CIBC | -8.8630| -2.0| 240.0| -6.9
Nutrien | -12.9200| -2.7| 54.4| 28.9
US
By Abigail Moses
(Bloomberg) — Stocks extended their rebound from the lowest levels in over a year as solid outlooks from retailers bolstered confidence in the economy despite supply-chain snags and inflationary pressures.
A drop in US mortgage rates by the most since April 2020 and Broadcom Inc.’s $61 billion acquisition of VMware Inc. also  fueled risk appetite.
Consumer shares led gains in the S&P 500 as Macy’s Inc. lifted its profit forecast, while deep-discount stores Dollar Tree Inc. and Dollar General Corp. notched their biggest rallies on record amid stronger sales projections.
Southwest Airlines Co. and JetBlue Airways Group Inc. surged on bullish revenue estimates.
Megacaps Apple Inc. and Tesla Inc. helped push the Nasdaq 100 up almost 3%.
The strong views from retailers provided some relief to investors after behemoths Walmart Inc. and Target Corp. cut their outlooks last week, sparking an industry selloff.
US consumers still largely expect the inflationary shock to be temporary, and for price gains to be low and stable in the longer run, according to a report by the Federal Reserve Bank of New York.
“Although this was an expected and highly talked about potential ‘oversold’ rally, the underpinning for today’s market climb higher suggests that last week’s doom and gloom about the all-important US consumer may have been overdone,” said Quincy Krosby, chief equity strategist at LPL Financial.
Here are some key events to watch this week:
* US core PCE price index; personal income and spending; wholesale inventories; University of Michigan consumer sentiment Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 2% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.8%
* The Dow Jones Industrial Average rose 1.6%
* The MSCI World index rose 1.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.4% to $1.0724
* The British pound rose 0.2% to $1.2599
* The Japanese yen rose 0.2% to 127.09 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 2.75%
* Germany’s 10-year yield advanced five basis points to 1.00%
* Britain’s 10-year yield advanced six basis points to 1.97%
Commodities
* West Texas Intermediate crude rose 3.2% to $113.90 a barrel
* Gold futures rose 0.2% to $1,856.20 an ounce
–With assistance from Andreea Papuc, Vildana Hajric and Isabelle Lee.
Have a lovely evening everyone.

Be magnificent!

As ever,

Carolann

My motto was always to keep swinging.  Whether I was in a slump or feeling badly or having trouble off the field, the only thing to do was to keep swinging. –Hank Aaron, 1934-2021.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
May 25, 2020: George Floyd, an unarmed African American man, was killed during an arrest in Minneapolis, Minnesota, setting off massive protest around the country and generating greater support for the Black Lives Matter movement; police officer Derek Chauvin was later convicted of his murder.
On May 25, 2006, Kenneth L. Lay and Jeffrey K. Skilling, the chief executives who guided Enron through its spectacular rise and even more stunning fall, were found guilty of fraud and conspiracy. Go to article »

Ralph Waldo Emerson, writer, b. 1803.
Miles Davis, musician, b. 1926.

What are the odds we’ve been visited by aliens? Better than you think. — Tyler Cowen.

The best and worst cities for work-life balance.

Pottery shard could be 1,000-year-old hand grenade.

RIP, spacecraft designer Colin Cantwell. (h/t Ellen Kominers)

The Queen’s Platinum Jubilee coin

PHOTOS OF THE DAY

The US air force Thunderbirds fly past the snow-capped Pikes Peak as they practise for a performance at the Air Force Academy class graduation ceremony
CREDIT: Christian Murdock/AP

Men wearing traditional costume race horses
CREDIT: Hazem Ahmed/Reuters

A man checks his boat at sunrise
CREDIT: Chaideer Mahyuddin/AFP/Getty Images
Market Closes for May 25^th, 2022

Market Index	Close	Change
Dow Jones	32120.28	+191.66
		+0.60%
S&P 500	3978.73	+37.25
		+0.95%
NASDAQ	11434.74	+170.29 +1.51%
TSX	20383.75	+97.55
		+0.48%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26677.80	-70.34
		-0.26%
HANG SENG	20171.27	+59.17
		+0.29%
SENSEX	53749.26	-303.35
		-0.56%
FTSE 100*	7522.75	+38.40 +0.51%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.775	2.809
CND. 30 Year Bond	2.773	2.793
U.S.    10 Year Bond	2.7452	2.7506
U.S. 30 Year Bond	2.9691	2.9667

Currencies

BOC Close	Today	Previous
Canadian $	0.7802	0.7802
US $	1.2817	1.2817
Euro Rate 1 Euro=		Inverse
Canadian $	1.3701	0.7299
US $	1.0689	0.9355

Commodities

Gold	Close	Previous
London Gold Fix	1867.10	1856.20
Oil
WTI Crude Future	112.58	112.02

Market Commentary:
On this day in 1763, the Dismal Swamp Co., one of the nation’s first corporations, was formed in Williamsburg, Va. Issuing one share to each of its 12 founders, one of whom was George Washington, it aimed to finance the development and resale of swampland in Virginia and North Carolina. Despite its distinguished founders, the company earned virtually no money until 1810, then fizzled out in 1814.
Canada
By Geoffrey Morgan
(Bloomberg) — Big bank earnings propelled financial equities to lead Canadian stock gains in Toronto, lifting the S&P/TSX Composite 0.5%.
Bank of Nova Scotia contributed the most to the index gain, increasing 2.9%, after reporting better-than-expected international earnings.
Vermilion Energy Inc. had the largest percentage increase, rising 8.9% as crude oil and natural gas prices surged.
On Wednesday, 136 of 239 shares rose, while 100 fell; 7 of 11 sectors were higher as Canadian stocks gained for a fourth day.
Insights
* This month, the index fell 1.8%
* The index advanced 4.2% in the past 52 weeks. The MSCI AC Americas Index lost 6.5% in the same period
* The S&P/TSX Composite is 8.2% below its 52-week high on April 5, 2022 and 4.6% above its low on May 12, 2022
* The S&P/TSX Composite is down 0.5% in the past 5 days and fell 3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.2 on a trailing basis and 12.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.25t
* 30-day price volatility rose to 20.56% compared with 20.45% in the previous session and the average of 16.81% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 47.6983| 0.8| 18/10
* Energy | 40.0026| 1.0| 31/3
* Information Technology | 14.1065| 1.4| 10/6
* Consumer Discretionary | 5.5782| 0.9| 10/4
* Communication Services | 5.4278| 0.5| 7/0
* Consumer Staples | 5.3718| 0.7| 10/1
* Health Care | 2.5481| 2.8| 7/1
* Real Estate | -1.4455| -0.3| 8/15
* Utilities | -3.1984| -0.3| 7/8
* Industrials | -4.7250| -0.2| 12/16
* Materials | -13.7995| -0.5| 16/36
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Bank of Nova Scotia| 19.7100| 2.9| -15.6| -6.5
* TD Bank | 16.8100| 1.5| -32.3| -3.3
* Suncor Energy | 8.5250| 1.7| -24.7| 59.5
* Waste Connections | -3.2390| -1.1| -20.1| -7.1
* Nutrien | -4.8510| -1.0| -25.6| 32.5
* TC Energy | -7.9570| -1.6| -31.9| 23.8
US
By Abigail Moses
(Bloomberg) — Stocks climbed after minutes from the Federal Reserve’s latest policy meeting gave no signals that officials could turn more hawkish soon to fight inflation.
The S&P 500 rebounded from earlier losses, while the tech-heavy Nasdaq 100 outperformed.
The dollar pared gains.
Treasury two-year yields — which are more sensitive to imminent policy moves — edged higher, while the 10-year rate wavered.
In late trading, Nvidia Corp., the largest US chipmaker by market value, slid after Chinese supply-chain woes and the war in Ukraine weighed on its sales forecast.
Most US policy makers saw half-point rate increases as appropriate at the next two meetings, consistent with Chair Jerome Powell’s comments.
While they noted the potential for rates to go high enough to constrain the economy, there were hints of a possible pause — an “expedited” tightening would leave the Fed “well positioned later this year to assess the effects of policy firming and the extent to which economic developments warranted policy adjustments.”
Comments:
* “After the July meeting, the Fed is likely to become more ‘data dependent’ with regard to rate hikes,” said Bob Miller, BlackRock’s head of Americas fundamental fixed-income.
* “The FOMC will likely hike by 50 bps at their upcoming meeting, but if growth prospects falter, the FOMC could likely revert to more conservative 25 basis point hikes in subsequent meetings,” said Jeffrey Roach, Chief Economist for LPL Financial, referring to the Federal Open Market Committee.
* “The minutes came in close to market pricing,” said Priya Misra, global head of rates strategy at TD Securities.
* “While the Fed has been under the microscope for quite some time now, it’s important to keep in mind that the minutes were from weeks ago,” said Mike Loewengart, managing director of investment strategy at E*TRADE from Morgan Stanley.  “It’s possible that investors will be in wait-and-see mode until the next Fed meeting to get it straight from the source.”
* “We got some confirmation that the Fed is going to stay aggressive for at least the next few meetings,” said Matt Maley, chief market strategist for Miller Tabak + Co. “However, investors seem to be getting more comfortable with the thought that ‘tearing the band aid off’ quickly might actually be what we need.”
Here are some key events to watch this week:
* Bank of Korea rate decision Thursday
* US GDP, initial jobless claims Thursday
* US core PCE price index; personal income and spending; wholesale inventories; University of Michigan consumer sentiment Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.5%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index rose 0.7%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.5% to $1.0677
* The British pound rose 0.4% to $1.2577
* The Japanese yen fell 0.4% to 127.31 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 2.75%
* Germany’s 10-year yield declined one basis point to 0.95%
* Britain’s 10-year yield advanced two basis points to 1.91%
Commodities
* West Texas Intermediate crude rose 0.9% to $110.81 a barrel
* Gold futures fell 0.7% to $1,859.20 an ounce
–With assistance from Andreea Papuc.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

Our worst misfortunes never happen, and most miseries lie in anticipation. –Honoré de Balzac, 1799-1850.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Buddha Day
May 24, 1976: In the Judgement of Paris, wine testers rate wines from California higher than their French counterparts, challenging the notion of France being the foremost producer of the world’s best wines.

1976 Britain and France opened trans-Atlantic Concorde service to Washington.  Go to article »
1844:First US telegraph line opens.
Bob Dylan, musician, b. 1941.
Patti LaBelle, musician, b. 1944

Area accountant realizes living on cruise ships forever is cheaper than living on land. (h/t Ellen Kominers)

Princess Diana’s wedding tiara exhibited for the first time in decades.  Take a moment to bask in the beauty of this priceless tiara, famously worn by Princess Diana during her wedding to Prince Charles in 1981. 

Helicopter spots man stuck on 500-foot cliff.  Now, that was a close call. Check out the footage from the intense rescue.

How to explain Harry Styles to an alien.

‘SNL’ says goodbye to Kate McKinnon and Pete Davidson. 

“Saturday Night Live” closed out its 47th season with a funny, yet emotional episode. Grab a tissue… your eyes may get a little sweaty when you watch their goodbye moments. 
PHOTOS OF THE DAY

Guests wearing baroque-style costumes walk in the Hall of Mirrors at the Château de Versailles palace during the Fetes Galantes fancy dress evening. The theme was the royal wedding of Marie Antoinette and Louis XVI. The annual ball aims to recreate the baroque splendour of the dazzling court feasts held to show off the wealth and power of France’s longest-reigning monarch. For tickets costing more than €500, guests can wander through the private apartments of the chateau
CREDIT: Ludovic Marin/AFP/Getty Images

Film fans attend Dimanche au Cinéma, an open-air event on the Avenue des Champs-Élysées
CREDIT:  Emmanuel Dunand/AFP/Getty Images

Emma Soulsby puts the finishing touches to a floral installation called The Guardsman outside a shop on Pimlico Road, for the Belgravia in Bloom festival
CREDIT: PA

Market Closes for May 24^th, 2022

Market Index	Close	Change
Dow Jones	31928.62	+48.38
		+0.15%
S&P 500	3941.48	-32.27
		-0.81%
NASDAQ	11264.45	-270.82 -2.35%
TSX	20286.20	+88.59
		+0.44%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26748.14	-253.38
		-0.94%
HANG SENG	20112.10	-357.96
		-1.75%
SENSEX	54052.61	-236.00
		-0.43%
FTSE 100*	7484.35	-29.09 -0.39%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.809	2.834
CND. 30 Year Bond	2.793	2.813
U.S.    10 Year Bond	2.7506	2.7865
U.S. 30 Year Bond	2.9667	2.9907

Currencies

BOC Close	Today	Previous
Canadian $	0.7802	0.7798
US $	1.2817	1.2824
Euro Rate 1 Euro=		Inverse
Canadian $	1.3757	0.7269
US $	1.0733	0.9317

Commodities

Gold	Close	Previous
London Gold Fix	1856.20	1844.00
Oil
WTI Crude Future	112.02	113.23

Market Commentary:
On this day in 1937, the U.S. Supreme Court upheld the constitutionality of Social Security benefits in the landmark case of Helvering v. Davis. The court ruled, “Congress did not improvise a judgment when it found that the award of old-age benefits would be conducive to the general welfare.”
Canada
By Geoffrey Morgan
(Bloomberg) — Canada’s three largest industries — financials, energy and materials — led Canadian equities higher and offset sharp losses among cannabis and tech stocks Tuesday.
The S&P/TSX Composite rose for the third day, climbing 0.4%, or 88.59 to 20,286.20 in Toronto.
Canadian Natural Resources Ltd., the country’s largest oil and gas producer, contributed the most to the index gain, increasing 4%. OceanaGold Corp. had the largest increase, rising 7.6%.
Today, 139 of 239 shares rose, while 96 fell; 6 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index fell 2.3%
* The index advanced 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 7.6% in the same period
* The S&P/TSX Composite is 8.7% below its 52-week high on April 5, 2022 and 4.1% above its low on May 12, 2022
* The S&P/TSX Composite is up 0.4% in the past 5 days and fell 4.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.1 on a trailing basis and 12.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.23t
* 30-day price volatility rose to 20.45% compared with 20.34% in the previous session and the average of 16.63% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 65.3898| 1.7| 31/3
* Financials | 57.7153| 0.9| 21/7
* Materials | 37.7004| 1.4| 37/12
* Communication Services | 8.8674| 0.9| 6/1
* Utilities | 6.1212| 0.6| 11/5
* Consumer Staples | 1.1355| 0.1| 6/5
* Real Estate | -0.7095| -0.1| 15/8
* Health Care | -7.1947| -7.4| 0/7
* Consumer Discretionary | -7.3350| -1.1| 2/12
* Industrials | -13.3018| -0.6| 9/21
* Information Technology | -59.7820| -5.4| 1/15
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Canadian Natural Resources | 25.1200| 4.0| 6.9| 54.3
* Royal Bank of Canada | 13.3900| 1.1| -29.3| -4.2
* Nutrien | 10.1600| 2.2| -25.6| 33.8
* Constellation Software | -5.3980| -2.0| -25.1| -17.2
* Canadian National | -8.0460| -1.4| 29.3| -9.1
* Shopify | -39.2600| -10.7| 8.4| -76.1
US
By Abigail Moses
(Bloomberg) — Stocks pared losses as a rebound in defensive companies offset a slide in technology shares triggered by a profit warning from Snap Inc.
Gains in sectors such as utilities and consumer staples pushed the S&P 500 off from session lows.
The tech-heavy Nasdaq 100 underperformed.
Snapchat’s owner tumbled over 40%, leading declines in companies that rely on digital advertising.
Homebuilders slumped after a disappointing report on new US home sales.
Separate data showed business activity softened.
Treasuries rallied as investors sought haven assets, while dialing back the expected pace of Federal Reserve hikes.
The two-year yield fell as much as 16 basis points to 2.46%.
Money-market traders priced in about 135 basis points of rate increases over the central bank’s next three policy meetings, down from about 141 basis points at Monday’s close.
“The market is moving its focus — and has been for the last month or so — from inflation concerns to growth concerns,” said Ellen Hazen, chief market strategist at FL Putnam.
Fed Bank of Atlanta President Raphael Bostic, who’s one of the central bank’s dovish policy makers, urged his colleagues to proceed with care.
The Fed raised interest rates by 50 basis points earlier this month and Chair Jerome Powell signaled it was on track to make similar-sized moves at its meetings in June and July, a plan that both hawks and doves have since embraced
to cool the hottest inflation since the 1980s.
Here are some key events to watch this week:
* Reserve Bank of New Zealand rate decision Wednesday
* FOMC minutes Wednesday
* ECB publishes its Financial Stability Review Wednesday
* Bank of Korea rate decision Thursday
* US GDP, initial jobless claims Thursday
* US core PCE price index; personal income and spending; wholesale inventories; University of Michigan consumer sentiment Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.2%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.4% to $1.0734
* The British pound fell 0.4% to $1.2536
* The Japanese yen rose 0.8% to 126.88 per dollar
Bonds
* The yield on 10-year Treasuries declined nine basis points to 2.76%
* Germany’s 10-year yield declined five basis points to 0.97%
* Britain’s 10-year yield declined eight basis points to 1.89%
Commodities
* West Texas Intermediate crude fell 0.1% to $110.15 a barrel
* Gold futures rose 0.9% to $1,871.40 an ounce
–With assistance from Andreea Papuc, Robert Brand, Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

In the end these things matter most: How well did you love?  How fully did you live? 
How deeply did you let go? -Siddhartha Gautama, c.563-480 BCE-4c.483-400 BCE.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday.

1927-First Tarns-Atlantic flight, Lindbergh.
1939- Regular trans-Atlantic air service began as a Pan American Airways plane took off from Port Washington, N.Y., bound for Europe.  Go to article »
1932- Amelia Earhart Atlantic crossing.
1989-The Chinese authorities declare martial law in the face of pro-democracy demonstrations, setting the scene for the Tiananmen Square massacre.

Henry Rousseau, painter, b.1844.
Honoré de Balzac, writer, b. 1799.

Mercedes just sold the world’s most expensive car for $142 million.  Yes, you read that right… a whopping $142 million for a car. The floor mats probably cost more than an average house. Insane.

After a Pandemic Lull, Prices Soar for Blue Chip Art at Auction The high end of the market just got higher as auction houses put $40 million price tags on their best pieces.Coke’s new bottle cap doesn’t come off. No cap gets left behind. Here’s why Coke is tethering caps to bottles.  If you’re still planning summer cultural travel, the following festivals and exhibitions should be at the top of your list: Documenta 15: The hyper-contemporary art exhibition in Kassel, Germany, takes place just once every five years, and is known for game-changing shows that set the pace for the contemporary art world for years to come. June 18–Sept. 25 The Salzburg Festival: Combining opera, theater, and concerts, the festival takes place across the beautiful Austrian town and draws top performers in every medium from around the world. July 18–Aug. 31 The Venice Biennale: I’ve already written about it extensively, but I cannot emphasize this enough, if you care about contemporary art at all, go! This edition is  almost unanimously acclaimed as the best in recent memory. Until Nov. 27 Festival d’Aix-en-Provence: Another world-class festival in a spectacular destination, this one devoted to cutting-edge interpretations of opera and classical music. July 4–23 Stresa Festival: OK, one more music festival, but it’s worth it. Set against the spectacular backdrop of Italy’s Lake Maggiore, much of the festival takes place outdoors, in the gardens of local palazzos and other historic sites. And it’s not just classical this time—there’s jazz, too. July 16–Sept. 9 -from Bloomberg.

The 10 Best Books for Your Summer Reading List.

PHOTOS OF THE DAY

A fisherman paddles his boat during a sandstorm in Iraq’s southern city of Basra. Hundreds of Iraqis were taken to hospitals with breathing problems and Baghdad airport suspended flights for several hours as a thick sandstorm blanketed the country, the fifth to engulf Iraq within a month
CREDIT: Hussein Faleh/AFP/Getty Images

Locals and tourists watch the moon rising by the Temple of Poseidon at the cape of Sounion. A total lunar eclipse this week coincided with a super moon, when the moon is at its closest point to Earth and reflects a red and orange light
CREDIT: Louisa Gouliamaki/AFP/Getty Images

Giant pandas eat bamboo in a tree at the Shenshuping base of the China conservation and research centre for the giant panda in Aba
CREDIT: Xu Jun/VCG/Getty Images
Market Closes for May 20^th, 2022

Market Index	Close	Change
Dow Jones	31261.90	+8.77
		+0.03%
S&P 500	3901.36	+0.57
		+0.01%
NASDAQ	11354.62	-33.88 -0.30%
TSX	20197.61	+15.69
		+0.08%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26739.03	+336.19
		+1.27%
HANG SENG	20717.24	+596.56
		+2.96%
SENSEX	54326.39	+1534.16
		+2.91%
FTSE 100*	7389.98	+87.24 +1.19%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.834	2.883
CND. 30 Year Bond	2.813	2.867
U.S.    10 Year Bond	2.7865	2.8370
U.S. 30 Year Bond	2.9907	3.0491

Currencies

BOC Close	Today	Previous
Canadian $	0.7798	0.7797
US $	1.2824	1.2845
Euro Rate 1 Euro=		Inverse
Canadian $	1.3547	0.7382
US $	1.0563	0.9467

Commodities

Gold	Close	Previous
London Gold Fix	1844.00	1810.65
Oil
WTI Crude Future	113.23	112.21

Market Commentary:
On this day in 1873, Jacob Davis, a Latvian tailor who had settled in Reno, Nev., and a Bavarian merchant named Levi Strauss, who sold cloth in San Francisco, jointly took out U.S. Patent No. 139,121. Strauss supplied the $68 in patent fees; Davis supplied the design. The two men patented the process for holding indigo denim “waist overalls” together with metal rivets—the first blue jeans.
Canada:
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 20,197.61 in Toronto.
Brookfield Asset Management Inc. contributed the most to the index gain, increasing 1.8%.
Kinaxis Inc. had the largest increase, rising 3.8%.
Today, 114 of 239 shares rose, while 121 fell; 7 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index fell 2.7%
* So far this week, the index rose 0.5%, heading for the biggest advance since the week ended March 25
* The index advanced 3.3% in the past 52 weeks. The MSCI AC Americas Index lost 7.6% in the same period
* The S&P/TSX Composite is 9.1% below its 52-week high on April 5, 2022 and 4% above its low on May 20, 2021
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16 on a trailing basis and 12.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.23t
* 30-day price volatility little changed to 20.34% compared with 20.36% in the previous session and the average of 15.76% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 15.7620| 0.4| 19/14
* Financials | 11.7318| 0.2| 14/13
* Communication Services | 9.2755| 0.9| 6/1
* Utilities | 9.1730| 0.9| 12/4
* Industrials | 8.4088| 0.4| 11/19
* Consumer Staples | 4.6477| 0.6| 8/3
* Real Estate | 1.0943| 0.2| 12/10
* Consumer Discretionary | -0.5519| -0.1| 6/8
* Health Care | -2.2194| -2.2| 0/7
* Information Technology | -16.7133| -1.5| 11/5
* Materials | -24.9356| -0.9| 15/37
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Brookfield Asset Management | 10.9400| 1.8| 1.0| -20.9
* Waste Connections | 5.6730| 2.0| -32.2| -7.3
* Canadian National | 4.7280| 0.8| 5.5| -7.8
* WSP Global | -3.7740| -5.2| 110.2| -26.3
* Nutrien | -20.1300| -4.1| 0.6| 31.0
* Shopify | -27.7200| -7.1| 4.9| -73.2
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — A dramatic late-session rally brought the S&P 500 back from the brink of a bear market, but the index still sank for a seventh straight week in a stretch of weakness not seen since 2001.
The benchmark closed the day little changed, after a selloff earlier sent it down more than 2% from a January closing high, meeting the common definition of a bear market.
At the end of another volatile week, the monthly expiration of options tied to equities and exchange-traded funds exacerbated price swings.
Treasuries gained with the dollar as havens caught bids.
In a week marked by buy-the-dip, sell-the-rally price action, investors grappled with concerns about an economic slowdown and prospects for more monetary tightening, while retailers signaled the mounting impact of high inflation on
margins and consumer spending.
The S&P 500’s seventh weekly decline marked the longest losing streak since the dotcom bubble burst more than two decades ago.
It’s just its fourth streak of seven or more weekly losses in the post-World War II period, according to Bespoke Investment Group.
“It’s a small sample size, but these types of streaks haven’t occurred during particularly positive periods for the equity market,” wrote the firm’s strategists in a note. “The root causes of the weakness have been the hawkish FOMC and increasing concerns over the potential for a recession.”
More Commentary
* “The economy is relatively fragile right now, has been weakening, and obviously inflation is causing a lot of consternation among a lot of companies and investors, and we weren’t seeing that being reflected in earnings estimates,” Mike Mullaney, director of global markets research at Boston Partners, said by phone. “We just haven’t seen negative revisions yet, and until you see negative revisions, we still think there’s more downside to the market.”
* “A lot of the excesses have been wrung out, especially out of the more speculative segments of the market,” Keith Lerner, co-chief investment officer and chief market strategist at Truist Advisory Services, said in a note. “In times like this, volatility and pullbacks are always uncomfortable and come with bad news, but they are also the admission price to being in the market with the potential for higher long-term returns relative to most other asset classes.”
* “No sign yet of the Fed being unhappy about tighter financial conditions so far, and markets are continuing to fully price in two further 50bp moves from the Fed in June and July,” wrote Deutsche Bank’s Jim Reid. “Nobody said getting inflation back to target from such lofty levels would be easy. So if you’re looking for a Fed put, it may take a while.”
In the latest developments over Russia’s war in Ukraine, the Senate passed a more than $40 billion Ukraine aid package, sending the bill to President Joe Biden for his signature.
Meanwhile, the Group of Seven industrialized nations will agree on more than 18 billion euros ($19 billion) in aid for Ukraine, according to German Finance Minister Christian Lindner.
Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 fell 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.3% to $1.0556
* The British pound rose 0.2% to $1.2489
* The Japanese yen was little changed at 127.87 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 2.78%
* Germany’s 10-year yield was little changed at 0.94%
* Britain’s 10-year yield advanced three basis points to 1.89%
Commodities
* West Texas Intermediate crude rose 0.9% to $113.23 a barrel
* Gold futures were little changed
–With assistance from April Ma, Tassia Sipahutar, Michael Msika, Robert Brand and Isabelle Lee.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

To live each day as though one’s last, never flustered, never apathetic, never attitudinizing – here is perfection of character. –Marcus Aurelius, 121 AD-180 AD.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: MAY RAY DAY TODAY.  This day is set aside yearly to celebrate all of the rays of sunshine which brighten our lives. It’s the time of year when the remnants of spring make room for the inviting sunshine of summer.   It’s a day to take a walk and embrace the beauty of our world with gratitude.

1936: Gone With The Wind published.
1780: Dark Day in New England.
1890: Ho chi Minh, Vietnamese President, b.
1925: Malcolm X, black civil rights leader, b.
2018: Prince Harry married American actress Meghan Markle at St. George’s Chapel, Windsor Castle.
2001 Apple, Inc. opened its first retail stores, in Tysons Corner, Va., and Glendale, Calif.  Go to article »

Apple is close to launching a VR headset.

The Voyager probe is sending back strange data, just as “Star Trek” predicted. 
PHOTOS OF THE DAY

Flamingos fly over the Chaxa lagoon, in the Atacama Salar salt flats, as a study shows lithium mining is forcing the birds to leave the area
CREDIT: Reuters

The pack of riders cycle through the streets of Parma before the start of the 12th stage of the Giro d’Italia 2022 cycling race, which covers 127 miles (204km) from Parma to Genova
CREDIT: Luca Bettini/AFP/Getty Images

Covent Garden hangs more than 4,000 union flags in celebration of the upcoming Queen’s platinum jubilee
CREDIT: Paul Grover

Market Closes for May 19^th, 2022

Market Index	Close	Change
Dow Jones	31253.13	-236.94
		-0.75%
S&P 500	3900.79	-22.89
		-0.58%
NASDAQ	11388.50	-29.65 -0.26%
TSX	20181.92	+80.54
		+0.40%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26402.84	-508.36
		-1.89%
HANG SENG	20120.68	-523.60
		-2.54%
SENSEX	52792.23	-1416.30
		-2.61%
FTSE 100*	7302.74	-135.35 -1.82%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.883	2.946
CND. 30 Year Bond	2.867	2.913
U.S.    10 Year Bond	2.8370	2.8840
U.S. 30 Year Bond	3.0491	3.0647

Currencies

BOC Close	Today	Previous
Canadian $	0.7797	0.7761
US $	1.2845	1.2885
Euro Rate 1 Euro=		Inverse
Canadian $	1.3574	0.7367
US $	1.0584	0.9448

Commodities

Gold	Close	Previous
London Gold Fix	1810.65	1825.00
Oil
WTI Crude Future	112.21	109.59

Market Commentary:
On this day in 1568, one of the earliest known junk bonds was issued, as the Russia Co. borrowed 4,000 pounds, 8 shillings and 10 pence from the British exchequer. The loan was priced to yield 13.5%, and the company was to repay it not with cash, but with hundreds of tons of cables and rope—making it one of the earliest “asset-backed” loans as well.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian gold and silver miners joined a rally in precious metals after an unexpected jump in US jobless claims.
Materials led an S&P/TSX Composite rally of 0.4% to 20,181.92 in Toronto.
The move follows the previous session’s decrease of 1.9%.
Shopify Inc. contributed the most to the index gain, increasing 7.9%.
ATS Automation Tooling Systems Inc. had the  largest percentage increase, rising 11.9%.
On Thursday, 137 of 239 shares rose, while 98 fell; 5 of 11 sectors were higher.
Insights
* So far this week, the index rose 0.4%, heading for the biggest advance since the week ended March 25
* The index advanced 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 6.5% in the same period
* The S&P/TSX Composite is 9.1% below its 52-week high on April 5, 2022 and 5% above its low on May 19, 2021
* The S&P/TSX Composite is up 2.5% in the past 5 days and fell 8.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.1 on a trailing basis and 12.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.22t
* 30-day price volatility rose to 20.36% compared with 20.31% in the previous session and the average of 15.33% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 79.9437| 3.1| 42/10
* Information Technology | 39.6366| 3.7| 13/3
* Energy | 8.7876| 0.2| 20/13
* Health Care | 1.8206| 1.9| 6/1
* Consumer Staples | 0.4231| 0.1| 3/8
* Utilities | -0.3994| 0.0| 9/7
* Consumer Discretionary | -0.5366| -0.1| 8/5
* Real Estate | -0.8569| -0.2| 8/15
* Financials | -12.5278| -0.2| 9/18
* Communication Services | -14.6093| -1.4| 1/6
* Industrials | -21.1492| -0.9| 18/12
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | 28.8300| 7.9| 6.3| -71.2
* Barrick Gold | 13.5800| 4.4| 218.9| 10.4
* Agnico Eagle Mines | 11.4100| 5.6| 62.3| 3.1
* TD Bank | -8.6560| -0.8| -41.3| -5.4
* Canadian National | -12.7700| -2.1| 26.5| -8.5
* Canadian Pacific | -13.1700| -2.3| 12.0| -3.3
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — US stocks fell in a volatile day of trading as investors weighed prospects for growth against a backdrop of rising prices and tightening monetary policy.
Treasuries held gains amid a steady stream of haven bids.
The S&P 500 swung back into the red in the last hour of trading, a day after the biggest single-day drop since June 2020 that erased $1.5 trillion from its market value.
The Nasdaq 100 posted modest losses, slipping 0.4% on Thursday.
Cisco Systems Inc. slid more than 10% after warning that Chinese lockdowns and other supply disruptions would wipe out sales growth in the current quarter.
Treasury yields were lower across the board amid a growing sense of angst over the health of the global economy and selloff in equity markets.
Weaker than forecast US jobless claims and a sharp decline in a regional Philadelphia Fed survey also spurred a burst of buying.
Gold gained while the dollar weakened against all of its Group-of-10 counterparts.
Applied Materials Inc., the biggest maker of machinery used to manufacture semiconductors, fell in post-market trading as  persistent chip shortages weighed on its forecast for the current quarter. Ross Stores Inc. dropped more than 15% after the bell as the discount retailer cut its outlook for profit and sales.
The selloff in stocks this week has left the S&P 500 on the brink of notching up its seventh weekly decline, the longest streak since the dotcom bubble burst more than two decades ago.
Bets that robust earnings can help investors weather this year’s turbulence were thrown in doubt after US consumer titans signaled a growing impact of high inflation on margins and consumer spending.
Meanwhile, Federal Reserve officials reaffirmed this week that tighter monetary policy lies ahead, while investors fretted over stagflation risks.
Commentary
* “In this bear market, the sour mood has been persistent and hasn’t helped at all in trying to time a market rebound,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “But that’s what happens in bear markets, oversold gets more oversold. That said, this level of bearishness can always lead to good bear market rallies.”
* “The focus has shifted obviously from ‘OK, we will see the Fed aggressively raise rates,’ to ‘Uh oh, what’s going to go on with growth — are we entering a sustained period of stagflation?’”  said Chris Gaffney, president of world markets at TIAA Bank. “In some instances, we’re already in a period of stagflation, but the question now is how long will that last. That’s just cast a negative tone on the markets when you’re considering central banks aggressively raising rates and at the same time we’re going into a period of maybe slower growth. That’s what’s causing the selloff.”
* “The stock market is square in the crosshairs of the Federal Reserve, which no longer has its back and is solely focused on slowing inflation back down to their long-range target of 2%,” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said in a note. “As the stock market goes down, the Fed can’t ease policy as long as inflation remains their main concern, and if the stock market rises significantly then then Fed will see that as an impediment to their inflation goals and will be emboldened to raise rates even higher.”
* Everybody’s afraid that policy makers are “going to get it  wrong,” Lori Heinel at State Street Global Advisors said on Bloomberg TV. “We actually are a little bit more dovish in terms of what we think the Fed’s gonna do, and if they move in the summer and then actually do take a bit of a pause, then there’s a chance that we get out of this without a recession.”
On the corporate front, Twitter Inc. executives told employees on Thursday that the $44 billion deal to sell the company to billionaire Elon Musk is moving forward as planned.
Apple Inc. executives previewed its upcoming mixed-reality headset to the company’s board last week, indicating that development of the device has reached an advanced stage, according to people with knowledge of the matter. Kohl’s Corp. cut its profit and sales outlook in an already tough week for retail companies as inflationary pressures cut into profits.
Elsewhere, the Swiss franc extended its advance versus the dollar after Swiss National Bank President Thomas Jordan said policy makers are ready to act against inflation.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.6% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.4%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index fell 0.9%
* The euro rose 1.2% to $1.0590
* The British pound rose 1.2% to $1.2495
* The Japanese yen rose 0.4% to 127.71 per dollar
Bonds
* The yield on 10-year Treasuries declined four basis points to 2.85%
* Germany’s 10-year yield declined eight basis points to 0.95%
* Britain’s 10-year yield was little changed at 1.86%
Commodities
* West Texas Intermediate crude rose 1.7% to $111.44 a barrel
* Gold futures rose 1.4% to $1,847.70 an ounce
–With assistance from Ksenia Galouchko, Srinivasan Sivabalan, Robert Brand, Isabelle Lee and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Our greatest glory is not in never falling, but in rising every time we fall. –Confucius, 551 BC-479 BC.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: International Museum Day.
1642:  My hometown, the Canadian city of Montreal was founded.  Go to article ».  I must say, it was a wonderful place in which to grow up.  Historic buildings are everywhere to inspire and provide reflection on the past.  It also has a fabulous cultural scene, education system and educational institutions, restaurants, bars, Jewish delis with the best smoked meat in the world….
1980: Mount St. Helen’s eruption.
Maye Musk becomes oldest Sports Illustrated Swimsuit cover model.  Her billionaire son may have dominated headlines recently, but the 74-year-old is now catching the spotlight for her own stunning swimsuit feature.

World paper airplane championship.  One word: Impressive! Prepare to be wowed by the highlights from the event.

30 of the best fried foods around the world.  If you have a crunchy craving for deep-fried foods, this one is for you. 

Queen Elizabeth makes surprise appearance at opening of new London train line.  What a pleasant surprise! The Queen was all smiles at this special event.

Coming this summer: blackouts.

Oh nothing, just continent-sized blobs deep inside the Earth. (h/t Liam Denning)

Who owns the rights to Einstein’s face? (h/t Scott Kominers)

What rocks teach us about the human condition.
PHOTOS OF THE DAY

Dancers perform on the steps of Sydney Opera House
CREDIT: Mark Metcalfe/Getty Images

A sled dog named Alaska pictured at a camp near Longyearbyen in the Svalbard archipelago
CREDIT: Jonathan Nackstrand/AFP/Getty Images

A person walks past artist Ron Mueck’s installation Mass, comprising more than 100 hand-cast skulls that collectively weigh about 5,000kg, at an exhibition at the National Gallery of Victoria
CREDIT: William West/AFP/Getty Images
Market Closes for May 18^th, 2022

Market Index	Close	Change
Dow Jones	31490.07	-1164.52
		-3.57%
S&P 500	3923.68	-165.17
		-4.04%
NASDAQ	11418.16	-556.36 -4.73%
TSX	20101.38	-389.63
		-1.90%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26911.20	+251.45
		+0.94%
HANG SENG	20644.28	+41.76
		+0.20%
SENSEX	54208.53	-109.94
		-0.20%
FTSE 100*	7438.09	-80.26 -1.07%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.946	3.027
CND. 30 Year Bond	2.913	3.024
U.S.    10 Year Bond	2.8840	2.9860
U.S. 30 Year Bond	3.0647	3.1778

Currencies

BOC Close	Today	Previous
Canadian $	0.7761	0.7804
US $	1.2885	1.2814
Euro Rate 1 Euro=		Inverse
Canadian $	1.3492	0.7412
US $	1.0471	0.9550

Commodities

Gold	Close	Previous
London Gold Fix	1825.00	1809.50
Oil
WTI Crude Future	109.59	112.40

Market Commentary:
On this day in 1553, one of the earliest business ventures financed by selling stock to the public was launched, as three ships set out from Gravesend in England seeking “discoverie of new trades northe warde” in Russia. The Russia Company, or Muscovy Company, had raised 6,000 pounds from more than 200 investors at 25 pounds a share. But the company earned no money for at least three decades, and many of its investors died without ever receiving a dividend.
Canada
By Geoffrey Morgan
(Bloomberg) — Cannabis, consumer staples and consumer discretionary stocks led a sharp selloff in Canadian stocks Wednesday as the S&P/TSX Composite fell 1.9% to 20,101.38 in Toronto.
The move was the biggest since falling 3.1% on May 9.
Today, utilities was the only sector to rise as 10 of 11 sectors lost; 218 of 239 shares fell, while 19 rose.
Brookfield Asset Management Inc. contributed the most to the index decline, decreasing 5.7%.
Dye & Durham Ltd. had the largest drop, falling 11.8%.
Insights
* In the past year, the index had a similar or greater loss six times. The next day, it declined five times for an average 0.6% and advanced 0.1% once
* The index advanced 3% in the past 52 weeks. The MSCI AC Americas Index lost 6.5% in the same period
* The S&P/TSX Composite is 9.5% below its 52-week high on April 5, 2022 and 4.6% above its low on May 19, 2021
* The S&P/TSX Composite is up 1.3% in the past 5 days and fell 8.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.1 on a trailing basis and 12.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.28t
* 30-day price volatility rose to 20.31% compared with 19.71% in the previous session and the average of 14.90% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -122.5965| -1.9| 1/27
* Materials | -65.4879| -2.5| 0/51
* Energy | -50.2703| -1.3| 3/31
* Industrials | -49.9590| -2.1| 0/30
* Consumer Staples | -33.7833| -4.1| 0/11
* Consumer Discretionary| -27.0978| -4.1| 0/14
* Information Technology| -19.8433| -1.8| 1/15
* Communication Services| -9.2760| -0.9| 1/6
* Real Estate | -7.8377| -1.4| 4/19
* Health Care | -5.3071| -5.1| 1/7
* Utilities | 1.8313| 0.2| 8/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Brookfield Asset Management | -35.6300| -5.7| 20.2| -22.6
* Couche-Tard | -18.5200| -5.6| -11.5| 3.1
* TD Bank | -17.9400| -1.5| -45.3| -4.7
* Brookfield Infrastructure | 0.7140| 0.4| 8.2| 1.9
* TC Energy | 0.8090| 0.2| -55.4| 24.7
* Fortis | 1.3060| 0.6| 147.3| 4.1
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — US stocks are headed for the biggest daily drop in almost two years as investors assess the impact of higher prices on earnings and prospects for monetary policy tightening on economic growth.
The dollar and Treasuries gained amid a pickup in haven bids.
The selloff sent the S&P 500 down more than 4%, with the plunge in consumer shares surpassing 7%.
Target Corp. tumbled more than 20% in its worst rout since 1987, after trimming its profit forecast due to a surge in costs.
Shares of retailers from Walmart Inc. to Macy’s Inc. were caught in the downdraft.
The Nasdaq 100 fell the most among major benchmarks, dropping more than 5% as growth-related tech stocks sank.
Mega caps Apple Inc. and Amazon.com Inc. slid at least 5%.
Treasuries rose across the board, sending the 10- and 30-year Treasury yields down as much as 11 basis points.
The dollar rose against all of its Group-of-10 counterparts, except the yen and Swiss franc.
Gold caught bids in the move into havens.
The benchmark S&P 500 is emerging from the longest weekly slump since 2011, but any rebounds in risk sentiment are proving fragile amid tightening monetary settings, Russia’s war in Ukraine and China’s Covid lockdowns.
In some of his most hawkish remarks to date, Federal Reserve Chair Jerome Powell said Tuesday that the US central bank will raise interest rates until there is “clear and convincing” evidence that inflation is in retreat.
Chicago Fed President Charles Evans said Wednesday he sees a half-point rate increase at next month’s meeting and “probably thereafter.”
Commentary
* “Stocks are getting hammered as inflation fears and weak earnings hit market sentiment hard,” Fiona Cincotta at City Index said in an email. “While strong retail sales helped boost stocks yesterday, disappointing quarterly numbers from retail giants Target and Lowe’s are striking fear into the market today. The data yesterday suggests that consumers are weathering the inflation hit for now. Retailers, however, are not doing so well at navigating through soaring input costs.”
* “Worries over inflation and a hawkish Fed are nothing new, but now add in worries over profit margins and the impact of inflation on the consumer and you have the recipe for a big down day,” Ryan Detrick, chief market strategist at LPL Financial, said in a note.
* “We are pricing in a growth scare,” Lori Calvasina at RBC Capital Markets told Bloomberg TV. “The market is trying to find a bottom here. There is a lot of uncertainty in this market right now about whether or not that recession is going to come through or if it’s going to be another near-death experience.”
* “What we’re seeing this week from big box retailers could be a clue as to what a recession might feel like for markets overall,” said Mike Bailey, director of research at FBB Capital Partners. “We’re seeing consumers vote with their wallets on what they value most, and we are seeing winners and losers emerge.”
* “The threat to asset prices is broad-based inflation pushing central banks to tighten monetary policy even more rapidly,”  Carl Ludwigson at Bel Air Investment Advisors said in a note.  “If the Federal Reserve’s policy response proves too aggressive, then Treasuries and high-quality municipal bonds will again be the place to hide as tighter financial conditions lead to demand destruction.”
In Europe, new-vehicle sales shrank for a 10th month in a row as the industry remains mired in supply-chain crises, while euro-area inflation plateaued at a record high.
Meanwhile, UK inflation rose to its highest level since Margaret Thatcher was prime minister 40 years ago, adding to pressure for action from the government and central bank.
Elsewhere, the Biden administration is poised to fully block Russia’s ability to pay US bondholders after a deadline expires next week, a move that could bring Moscow closer to a default.
Sri Lanka, meantime, is on the brink of reneging on $12.6 billion of overseas bonds, a warning sign to investors in other developing nations that surging inflation is set to take a painful toll.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 4.3% as of 3:31 p.m. New York time
* The Nasdaq 100 fell 5.2%
* The Dow Jones Industrial Average fell 3.8%
* The MSCI World index fell 2.9%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.8% to $1.0465
* The British pound fell 1.2% to $1.2340
* The Japanese yen rose 1% to 128.14 per dollar
Bonds
* The yield on 10-year Treasuries declined 10 basis points to 2.89%
* Germany’s 10-year yield declined two basis points to 1.03%
* Britain’s 10-year yield declined two basis points to 1.86%
Commodities
* West Texas Intermediate crude fell 3.2% to $108.78 a barrel
* Gold futures were little changed
–With assistance from Michael Msika, Andreea Papuc, Robert Brand and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

The Enlightenment started with essentially philosophical insights spread by a new technology.  Our period is moving in the opposite direction. 
It has generated a potentially dominating technology in search of a guiding philosophy. -Henry A. Kissinger, b. 1923.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Norway Day.

May 17, 1940: The Nazis occupied Brussels, Belgium, during World War II.  Go to article »

1844: Rubber bank patented.
1954: School segregation banned.  Brown vs Board of Education.  Lawyer Thurgood Marshall scores a landmark victory as the US Supreme Court unanimously rules in Topeka that racial segregation in public schools is unconstitutional.

You missed the coolest wedding of the 21st century.

Men need to read more books. (h/t Mark Gongloff)

PHOTOS OF THE DAY

Fish swim among coral that has grown on the retired naval landing ship dock Spiegel Grove, sunk 20 years earlier, six miles off Key Largo in Florida, to become an artificial reef
CREDIT: Frazier Nivens/AP

Lightning illuminates the sky over the south-western city
CREDIT: György Varga/EPA

Workers unpack a painting by Rosa Bonheur during preparations for a retrospective of her work at the Musée des Beaux Arts. The exhibition will run until 18 September to mark the bicentenary of her birth
CREDIT: Philippe Lopez/AFP/Getty Images
Market Closes for May 17^th, 2022

Market Index	Close	Change
Dow Jones	32654.59	+431.17
		+1.34%
S&P 500	4088.85	+80.84
		+2.02%
NASDAQ	11984.52	+321.73 +2.76%
TSX	20491.01	+284.61
		+1.41%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26659.75	+112.70
		+0.42%
HANG SENG	20602.52	+652.31
		+3.27%
SENSEX	54318.47	+1344.63
		+2.54%
FTSE 100*	7518.35	+53.55 +0.72%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.027	2.920
CND. 30 Year Bond	3.024	2.927
U.S.    10 Year Bond	2.9860	2.8840
U.S. 30 Year Bond	3.1778	3.1017

Currencies

BOC Close	Today	Previous
Canadian $	0.7804	0.7782
US $	1.2814	1.2850
Euro Rate 1 Euro=		Inverse
Canadian $	1.3519	0.7397
US $	1.0551	0.9478

Commodities

Gold	Close	Previous
London Gold Fix	1809.50	1811.55
Oil
WTI Crude Future	112.40	114.20

Market Commentary:
On this day in 1994, the Federal Reserve raised interest rates by half a percentage point. Believing that this hike—the fourth in three months—was the last, analysts turned bullish on bonds, and the price on five-year Treasury notes shot up by 0.22%, one of the biggest jumps in years. The Fed went on to raise rates by another 1.25 percentage points by year-end, and bonds had their worst year since 1967.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities rose in a risk-on rally, led by gains from cannabis and information technology stocks.
The S&P/TSX Composite rose for the third day, notching its longest winning streak in a month, to climb 1.4% to 20,491.01 in Toronto.
Toronto-Dominion Bank contributed the most to the index’s gain, increasing 1.9%.
Dye & Durham Ltd. had the largest percentage increase, rising 22.4%.
On Tuesday, 210 of 239 shares rose, while 28 fell; 10 of 11 sectors were higher.
Insights
* In the past year, the index had a similar or greater gain seven times. The next day, it advanced four times for an average 0.6% and declined three times for an average 0.9%
* The index advanced 5.2% in the past 52 weeks. The MSCI AC Americas Index lost 3.3% in the same period
* The S&P/TSX Composite is 7.8% below its 52-week high on April 5, 2022 and 6.6% above its low on May 19, 2021
* The S&P/TSX Composite is up 3% in the past 5 days and fell 6.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.9 on a trailing basis and 12.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.23t
* 30-day price volatility rose to 19.71% compared with 19.08% in the previous session and the average of 14.65% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 96.6724| 1.5| 26/2
* Materials | 50.2111| 2.0| 44/7
* Energy | 48.1232| 1.3| 30/4
* Industrials | 45.4175| 2.0| 28/2
* Information Technology | 24.7944| 2.3| 16/0
* Consumer Discretionary | 10.1298| 1.5| 13/1
* Utilities | 9.0166| 0.9| 13/3
* Real Estate | 5.0929| 0.9| 22/1
* Health Care | 2.9828| 3.0| 8/0
* Communication Services | 0.3883| 0.0| 4/3
* Consumer Staples | -8.2265| -1.0| 6/5
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* TD Bank | 21.8300| 1.9| -36.7| -3.2
* Brookfield Asset Management | 13.2500| 2.2| 33.5| -17.9
* Canadian Pacific | 12.5300| 2.2| -37.0| 0.7
* Loblaw | -1.8200| -1.4| -35.2| 9.3
* Metro Inc | -1.8750| -1.6| -27.0| 3.7
* Couche-Tard | -6.0580| -1.8| -27.3| 9.2

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — US stocks regained session highs as investors weighed comments from Federal Reserve Chair Jerome Powell on the outlook for higher interest rates.
Short-term Treasuries underperformed, extending a flattening in the yield curve.
The S&P 500 rose to the highest closing level in more than a week amid a broad-based rally, as solid economic data boosted risk sentiment.
The Nasdaq 100 jumped more than 2%, with Apple Inc., Tesla Inc. and Nvidia Corp. bouncing back from a tech-led selloff Monday.
Treasury yields climbed Tuesday, with more policy-sensitive front-end tenors leading the way higher reflecting expectations for a series Fed rate hikes, as Powell said the central bank won’t hesitate to raise rates above neutral if needed.
No one should doubt the US central bank’s resolve to curb the highest inflation in decades, Powell said. He also noted that financial conditions have tightened quite a bit.
“The market is in the middle of a powerful moment where it’s digesting a major and relatively rapid change in expectations for monetary policy and what financial conditions should look like to keep inflation under control,” Lauren
Goodwin, economist and portfolio strategist at New York Life Investments, said by phone. “And so we’ve already seen a lot of tightening in market financial conditions.”
Earlier, St. Louis Fed President James Bullard, a hawk and Federal Open Market Committee voter, said he backs the central bank’s plan to hike interest rates in half-percentage-point steps — moves that are already reflected in rates markets for the upcoming three FOMC meetings.
Risk sentiment caught a tailwind Tuesday after data showed U.S. retail sales grew at a solid pace last month, the latest evidence that consumers remained resilient in the face of inflation and higher rates.
Another report showed factory production rose at a solid pace for a third month in April.
The dollar stayed lower, weakening against all of its Group-of-10 counterparts except the yen, while European currencies led gains.
The risk mood in Europe got a lift from data showing the economy in the euro area expanded more than initially estimated at the start of the year, defying headwinds from the early days of the war in Ukraine. 
Commentary
* “Retail sales were much stronger than expected, especially including revisions,” said Dennis DeBusschere, the founder of 22V Research. “This has been a worry of ours — the consumer staying too hot for the Fed. The consumer momentum and strength has been much stronger than just about anyone would have thought.”
* “The takeaway from this morning’s retail sales print was confirmation that spending during the second quarter has started on solid footing,” wrote BMO’s Ian Lyngen.
* “Inflation may be weighing down market sentiment and causing concern for the Fed, but it doesn’t seem to be slowing down the consumer at the moment,” said Mike Loewengart, managing director of investment strategy at E*TRADE from Morgan Stanley. “That’s not to say that higher prices won’t start to creep into these numbers. After all we did see a decline month over month. And with a mixed bag on the retail earnings front today, it remains
to be seen how investors will digest this read on the consumer.”
* “Going into ‘23, ‘24, yeah there’s a recession out there somewhere but I don’t see that in the near-term,” Scott Clemons, chief investment strategist at Brown Brothers Harriman, said on Bloomberg TV. “The backdrop is just too strong.”
Stocks briefly dipped to session lows in morning trading amid reports that New York City raised its Covid-19 alert level to high amid increasing pressure on the health care system, a move that it signaled Monday could be imminent.
On the corporate front, Citigroup Inc. jumped after report showed Warren Buffett’s Berkshire Hathaway took a stake in the lender.
Walmart Inc. tumbled after cutting its profit outlook due to inflationary pressures.
Boeing Co. rose after the Wall Street Journal reported that the black box for a China Eastern Airlines Corp. jet suggested the plane took an intentional nosedive.
US-listed Chinese tech stocks jumped Tuesday, after a state television report that top officials reaffirmed support for internet companies.
JD.com Inc., China’s second-largest e-commerce operator, rose after revenue growth beat estimates.
Meanwhile, Shanghai reported three days of zero community transmission, a milestone that could lead officials to start unwinding a punishing lockdown.
Flareups elsewhere in China showed how hard it is to tackle the omicron strain.
Cryptocurrencies weathered the latest stable coin turbulence, with Bitcoin rising above the $30,000 mark.
Oil hovered around $114 a barrel in New York amid news that the US government will allow Chevron Corp. to negotiate its oil license with Venezuela.
What to watch this week:
* G-7 finance ministers and central bankers meeting Wednesday
* Eurozone, UK CPI Wednesday
* Philadelphia Fed President Patrick Harker speaks Wednesday
* China loan prime rates Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 2% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.6%
* The Dow Jones Industrial Average rose 1.3%
* The MSCI World index rose 2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.7%
* The euro rose 1.1% to $1.0545
* The British pound rose 1.3% to $1.2482
* The Japanese yen fell 0.2% to 129.38 per dollar
Bonds
* The yield on 10-year Treasuries advanced 10 basis points to 2.98%
* Germany’s 10-year yield advanced 11 basis points to 1.05%
* Britain’s 10-year yield advanced 15 basis points to 1.88%
Commodities
* West Texas Intermediate crude fell 1.9% to $112.06 a barrel
* Gold futures were little changed
–With assistance from Andreea Papuc, Michael Msika, Brett Miller, Robert Brand and Isabelle Lee.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

Keep true to the dreams of your youth. –Friedrich Von Schiller, 1759-1805.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com