Month: June 2022

Dear Friends,

Tangents: Happy Friday Eve.
On June 16, 1933, President Roosevelt opened his New Deal recovery program, signing bank, rail, and industry bills and initiating farm aid.  Go to article »

Five guys take the same photo for 40 years.  This group of friends took pictures in the same pose from 1982 to 2022. Check out their cool tradition!

‘Floating’ airplane cabin could be the future of travel.  A futuristic cabin concept with “floating furniture” recently won a prestigious aviation award. 

A first look at Ryan Gosling in ‘Barbie’ has sent the internet into a frenzy.  Who could play a better tanned and toned Ken doll than Ryan Gosling? (That’s a trick question… there is literally no one more perfect for this role.) 
China says it may have received signals from aliens:  China is claiming that its enormous “Sky Eye” telescope may have picked up trace signals from a distant alien civilization, according to a recently posted and subsequently deleted report by Chinese scientists.  Astronomers at Beijing Normal University have discovered “several cases of possible technological traces and extraterrestrial civilizations from outside the Earth,” according to a report published Tuesday (June 14) in Science and Technology Daily, the official newspaper of China’s Ministry of Science and Technology. Full Story: Live Science (6/15) 

$17 billion shipwreck near Colombia is remarkably preserved, new photos reveal: New images of one of the world’s most valuable shipwrecks show its remarkable preservation on the seafloor off the coast of Colombia — while the search has revealed two more historic shipwrecks in the same area.  The latest photographs and video of the wreck of the San José treasure galleon were released by the Colombian navy on June 6.  Full Story: Live Science (6/16) 

PHOTOS OF THE DAY

Members of the Joycestagers during their reenactment from the ‘Hades’ chapter of Ulysses at Glasnevin Cemetery, as part of the annual Bloomsday celebrations. Bloomsday is a celebration of the life of Irish writer James Joyce, observed annually worldwide on June 16, the day his 1922 novel Ulysses takes place in 1904, the date of his first outing with his wife-to-be Nora Barnacle. The day is named after its protagonist Leopold Bloom
CREDIT: Brian Lawless/PA

Visitors wearing lavish hat creations at attend Ladies Day at Royal Ascot, in Berkshire. Royal Ascot is Britain’s most lucrative horse race event
CREDIT: Andy Rain/EPA

Visitors gather around colourful hydrangeas at the Taishofu Tenmangu Shrine in Fukuoka prefecture. Hydrangeas are symbolic flowers of the hot and humid rainy season
CREDIT: Jiji Press/EPA

Market Closes for June 16^th, 2022

Market Index	Close	Change
Dow Jones	29927.07	-741.46
		-2.42%
S&P 500	3666.77	-123.22
		-3.25%
NASDAQ	10646.10	-453.05 -4.08%
TSX	19004.06	-607.50
		-3.10%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26431.20	+105.04
		+0.40%
HANG SENG	20845.43	-462.78
		-2.17%
SENSEX	51495.79	-1045.60
		-1.99%
FTSE 100*	7044.98	-228.43 -3.14%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.375	3.459
CND. 30 Year Bond	3.256	3.329
U.S.    10 Year Bond	3.1952	3.2877
U.S. 30 Year Bond	3.2474	3.3239

Currencies

BOC Close	Today	Previous
Canadian $	0.7723	0.7758
US $	1.2949	1.2890
Euro Rate 1 Euro=		Inverse
Canadian $	1.3663	0.7319
US $	1.0551	0.9477

Commodities

Gold	Close	Previous
London Gold Fix	1823.75	1818.30
Oil
WTI Crude Future	117.58	115.31

Market Commentary:
On this day in 1812, the State of New York chartered a new institution called City Bank of New York, capitalized at $2 million, with $800,000 already raised. Today it is the global behemoth called Citigroup.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities plunged to their biggest drop since June 2020, hitting their lowest point in 14 months as concerns mount that a recession is coming.
The S&P/TSX Composite fell 3.1% at 19,004.06 in Toronto.
Today, energy stocks led the market lower, as all sectors lost; 207 of 239 shares fell, while 30 rose.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 3.4%.
Cargo jet Inc. had the largest drop, falling 19.3%.
Insights
* This quarter, the index fell 13%, heading for the biggest decline since the first quarter of 2020
* So far this week, the index fell 6.3%, heading for the biggest decline since the week ended March 20
* The index declined 6.1% in the past 52 weeks. The MSCI AC Americas Index lost 15% in the same period
* The S&P/TSX Composite is at its 52-week low and 14.4% below its high on April 5, 2022
* The S&P/TSX Composite is down 7.6% in the past 5 days and fell 6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.8 on a trailing basis and 11.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.14t
* 30-day price volatility rose to 21.01% compared with 20.10% in the previous session and the average of 20.41% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -180.6987| -4.8| 0/34
* Financials | -177.3600| -2.9| 1/27
* Industrials | -53.8944| -2.4| 3/27
* Information Technology| -41.6077| -4.1| 2/14
* Communication Services| -36.6432| -3.8| 0/7
* Consumer Discretionary| -27.7930| -4.4| 0/14
* Real Estate | -24.5237| -4.8| 0/23
* Utilities | -21.7477| -2.3| 0/16
* Materials | -18.1659| -0.7| 24/26
* Consumer Staples | -16.2946| -2.1| 0/11
* Health Care | -3.3836| -4.4| 0/8
================================================================
| | | | YTD
|Index Points| | Volume VS | Change
Top Contributors | Move |% Change |20D AVG (%)| (%)
================================================================
* TD Bank | -37.5100| -3.4| 65.0| -11.1
* Brookfield Asset Management | -31.2100| -5.3| -3.3| -26.9
* Enbridge | -28.2800| -3.7| -46.2| 7.2
* LifeWorks Inc | 5.7570| 66.4| 1,924.0| 18.6
* Barrick Gold | 8.1960| 2.7| -40.8| 7.6
* Agnico Eagle Mines | 9.7550| 4.9| 21.7| -0.9
US
By Rita Nazareth
(Bloomberg) — Stocks tumbled around the globe as recession fears resurfaced, with the Federal Reserve struggling to get on top of inflation that has proved more persistent and widespread than officials anticipated.
The S&P 500 closed at its lowest since December 2020, while the tech-heavy Nasdaq 100 sank 4%.
The deal spread on Elon Musk’s proposed takeover of Twitter Inc. widened as the billionaire wasn’t directly asked and didn’t address the issue on whether he’s committed to buying the social-media firm during
a staff meeting.
Homebuilders slid as mortgage rates jumped the most since 1987.
The dollar fell as central banks in Europe stepped up monetary tightening, promising to narrow the gap between rates there and in the US.
Treasuries rebounded from an earlier selloff.
Bitcoin slid below $21,000, heading toward its longest slide in Bloomberg data going back to 2010.
Declaring that it’s essential to tame inflation, Jerome Powell engineered the biggest rate increase since 1994 Wednesday and held out the distinct possibility of another jumbo hike in July.
While the Fed chief sought to soften the blow of the 75-basis-point boost, saying he didn’t expect such moves to be the norm, he tacitly admitted the chance of an economic downturn.
“We’re worrying about growth and where the Fed takes us ultimately,” said Chris Gaffney, president of world markets at TIAA Bank.  “Yesterday everybody said, ‘Oh good, the Fed is doing something aggressive, they’re going to get aggressive, they’ll try to catch up to the inflation curve.’ But now, you’re looking at it and saying, ‘Yeah, but are they chasing something they’re not going to be able to catch?’”
While inflation is “out of control,” the Fed is doing the best it can given its limited tools, Orlando Bravo, co-founder of private-equity firm Thoma Bravo said.
Despite the stock carnage, valuations still have much further to fall, according to Jim Chanos, founder of Chanos & Company LP.
The S&P 500 now implies an 85% chance of a US recession amid fears of a policy error by the Fed, according to JPMorgan Chase & Co.
The warning from quant and derivatives strategists is based on the average 26% decline for the gauge during the past 11 recessions and follows its collapse into a bear market.
One technical indicator of US stocks shows the extent of the recent slump, while offering a whiff of optimism that it will soon come to an end.
The percentage of S&P 500 members that are trading above their 50-day moving average sank below 5% this week, the lowest level since Covid-19 fears battered shares more than two years ago.
Both that selloff and the one that hit markets in late 2018 reversed course shortly after seeing a similar share of stocks dip below the closely watched technical average.

More comments:
* “Our main takeaway from the Fed is hawkish — meaning the Fed is going to accept recession risk to deliver below-trend economic growth,” wrote Dennis DeBusschere, the founder of 22V Research.
* “Concerns are mounting about whether the Fed is headed towards a policy mistake,” said Quincy Krosby, chief equity strategist at LPL Financial.
* “Despite their assurance, it’s unclear to me whether the Fed has the tools they say they do to tamp down prices,” said Jason Brady, chief executive officer at Thornburg Investment Management.
Elsewhere, investors dumped European bonds and the franc rallied after a surprise Swiss rate hike.
The pound rose as the Bank of England raised rates and signaled it’s prepared to unleash larger moves if needed.
Currency options traders are betting the Bank of Japan will deliver a policy surprise this week.

Key events this week:
* Bank of Japan policy decision, Friday.
* Eurozone CPI, Friday.
* US Conference Board leading index, industrial production, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 3.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 4%
* The Dow Jones Industrial Average fell 2.4%
* The MSCI World index fell 2.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.8%
* The euro rose 1.1% to $1.0559
* The British pound rose 1.5% to $1.2357
* The Japanese yen rose 1.4% to 132.03 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 3.23%
* Germany’s 10-year yield advanced seven basis points to 1.71%
* Britain’s 10-year yield advanced five basis points to 2.52%
Commodities
* West Texas Intermediate crude rose 1.4% to $116.91 a barrel
* Gold futures rose 2% to $1,855.10 an ounce
–With assistance from Andreea Papuc, Sunil Jagtiani, Srinivasan Sivabalan, Vildana Hajric, Isabelle Lee, Matt Turner and Yiqin Shen.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

It is in our lives and not our words that our religion must be read. –Thomas Jefferson, 1743-1826.

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:
June 15, 1215: Magna Carta chartered.
June 15, 1860: Florence Nightingale started her School for Nurses at London’s St Thomas’ Hospital.
June 15, 1844: Charles Goodyear received a patent for a process to strengthen rubber.  Go to article »
Edvard Greig, composer, b. 1843.

Reporter loses it on air after Australia wins World Cup qualifier.  Need a smile? This Australian reporter reacted with pure joy when his home team earned a spot in the World Cup. 

Man vs. Emu: A Texas man fends off his giant aggressive bird with a very emusing tactic!  Watch the viral video here.

The best of Ascot style, then and now: From the Queen epitomising elegance in the 1950s to power suits in the 1980s to Meghan Markle’s debut, look at how Ascot style has evolved.

Where is the tomb of Genghis Khan?   Genghis Khan unified the Mongols and created an enormous empire that stretched from the Pacific Ocean to Ukraine by the time of his death in 1227; and his successors would go on to conquer even more territory.   So, where is this charismatic leader buried? Does he have a monumental tomb like the pyramids built for the ancient Egyptian pharaohs, or a mausoleum with terra–cotta warriors, like the one built for China’s first Qin emperor?  Full Story: Live Science (6/12) 

‘Factorian Deep,’ the new deepest point in Antarctica’s Southern Ocean, mapped for the first time:  Researchers have published the most detailed map of Antarctica’s frigid Southern Ocean to date, including the ocean’s new deepest point, the “Factorian Deep,” which sits nearly 24,400 feet (7,437 meters) below the sea surface.   Resting at a depth equivalent to about 17 Empire State Buildings stacked top to bottom, the Factorian Deep was discovered in 2019 by American explorer and entrepreneur Victor Vescovo, as part of his Five Deeps Expedition to map the deepest points of the world’s five oceans. Vescovo personally piloted a submersible named “Limiting Factor” (for which the Factorian Deep was named) to the bottom of the Atlantic Ocean’s South Sandwich Trench – an undersea canyon that spans roughly 600 miles (965 kilometers) of seafloor between South America and Antarctica.  Full Story: Live Science (6/14).

PHOTOS OF THE DAY

The artist Ai Weiwei shows his Arch installation at the National Museum
CREDIT: Michael Campanella/Getty Images for Brilliant Minds

Dancers Alex Clayton and Lisa Borres, from the Paul Taylor Dance Company, perform a scene from the 1961 work Fibers
CREDIT: Timothy A Clary/AFP/Getty Images

Hot air balloons fly over Cappadocia
CREDIT: Behcet Alkan/Anadolu Agency/Getty Images

Market Closes for June 15^th, 2022

Market Index	Close	Change
Dow Jones	30668.53	+303.70
		+1.00%
S&P 500	3789.99	+54.51
		+1.46%
NASDAQ	11099.16	+270.81 +2.50%
TSX	19611.56	+63.05
		+0.32%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26326.16	-303.70
		-1.14%
HANG SENG	21308.32	+240.22
		+1.14%
SENSEX	52541.39	-152.18
		-0.29%
FTSE 100*	7273.41	+85.95 +1.20%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.459	3.622
CND. 30 Year Bond	3.329	3.404
U.S.    10 Year Bond	3.2877	3.4733
U.S. 30 Year Bond	3.3239	3.4243

Currencies

BOC Close	Today	Previous
Canadian $	0.7758	0.7720
US $	1.2890	1.2953
Euro Rate 1 Euro=		Inverse
Canadian $	1.3486	0.7415
US $	1.0453	0.9563

Commodities

Gold	Close	Previous
London Gold Fix	1818.30	1830.85
Oil
WTI Crude Future	115.31	118.93

Market Commentary:
On this day in 1910, inspectors from the U.S. Post Office raided the headquarters of the United Wireless Telegraph Co. in New York, arresting its flamboyant president, Col. Christopher Columbus Wilson, and vice president Samuel Bogart, on charges of manipulating the stock price through mail fraud, fleecing the public of more than $20 million—over $365 million in today’s money.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities spiked a five-day losing streak, ending the session higher after the US Federal Reserve announced a 75 basis point rate hike and said that further outsized increases will be rare.
The S&P/TSX Composite rose 0.3% at 19,611.56 in Toronto.
The move was the biggest since rising 0.5% on June 7 and follows the previous session’s decrease of 1%.
Shopify Inc. contributed the most to the index gain, increasing 6.9%.
Bombardier Inc. had the largest increase, rising 18.3%.
On Wednesday, 173 of 239 shares rose, while 61 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* This quarter, the index fell 10%, heading for the biggest decline since the first quarter of 2020
* The index declined 3.1% in the past 52 weeks. The MSCI AC Americas Index lost 12% in the same period
* The S&P/TSX Composite is at its 52-week low and 11.7% below its high on April 5, 2022
* The S&P/TSX Composite is down 5.7% in the past 5 days and fell 2.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.2 on a trailing basis and 12.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.13t
* 30-day price volatility fell to 20.10% compared with 20.60% in the previous session and the average of 20.38% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 33.7458| 0.5| 20/8
* Information Technology | 28.9393| 2.9| 13/3
* Materials | 17.9032| 0.7| 41/10
* Industrials | 14.6673| 0.7| 24/6
* Consumer Discretionary | 9.6951| 1.6| 14/0
* Real Estate | 6.8586| 1.4| 23/0
* Communication Services | 4.1499| 0.4| 6/1
* Health Care | 2.4887| 3.4| 7/0
* Consumer Staples | 1.1882| 0.2| 10/1
* Utilities | -1.1443| -0.1| 5/10
* Energy | -50.3888| -1.3| 12/21
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | 21.2900| 6.9| 56.5| -75.9
* Brookfield Asset Management | 7.3270| 1.3| -11.5| -22.8
* Canadian National | 7.0090| 1.2| -33.3| -8.5
* Cenovus Energy | -8.8410| -3.6| 16.1| 78.7
* Suncor Energy | -9.7150| -1.9| -15.4| 58.0
* Canadian Natural Resources | -10.4300| -1.7| 118.8| 44.4
US
By Rita Nazareth
(Bloomberg) — Stocks rallied, halting a five-day rout that took 10% off the S&P 500, after Federal Reserve Chair Jerome Powell said outsize rate hikes will be rare as officials intensify their battle against
sky-high inflation.
Treasury yields tumbled alongside the dollar.
Equities pushed higher amid wild swings as the central bank raised rates by 75 basis points — the biggest increase since 1994 — and Powell said officials could move by that much in July or make a smaller
half-point hike.
While “it will take some time” to get inflation back down, the Fed chief is confident that “we will do that.”
His remarks sent two-year Treasury yields sinking as much as 24 basis points.
“The Fed nailed it,” said Ronald Temple, co-head of multi-asset and head of US equity at Lazard Asset Management.
“The Fed demonstrated its resolve to tame inflation without undermining its employment mandate. While some spectators argued for an even steeper hike, the Fed understood that the combination of rate hikes and QT already takes the US into uncharted territory with significant risks to growth,” he said, referring to quantitative tightening.
Powell and his colleagues on Wednesday intensified their effort to cool prices by lifting the target range for the federal funds rate to 1.5% to 1.75%.
Officials projected raising it to 3.4% by year-end, implying another 175 basis points of tightening this year.
The Fed also reiterated it will shrink its massive balance sheet by $47.5 billion a month — a move that took effect June 1 — stepping up to $95 billion in September.
Barclays Plc, which was among the first major banks to shift its Fed prediction for June to a 75-basis-point hike, said it anticipates the central bank will return to hiking at a 50-basis-point pace in July. Meantime, T. Rowe Price Group Inc., manager of $1.4 trillion in assets, said investors should buy bonds now because it’s the “most attractive point” in years.
More comments:
* “This indicates some confidence in what the Fed is doing,” said Kathy Jones, chief fixed-income strategist at the Schwab Center for Financial Research. “The Fed should see a flatter yield curve when it raises rates, unless there’s fear that they’re not going to get inflation under control or they haven’t reached a critical point where they can do that.”
* “With inflation not letting up, it’s become pretty clear that the Fed needs to take a more aggressive approach,” said Mike Loewengart at E*TRADE from Morgan Stanley. “Keep in mind that as we go through a changing monetary policy landscape, we’ll likely continue to see volatility as the market digests the new norm.  Sticking to your investment strategy during waves of volatility is a solid course of action — aka don’t panic.”
* “The Fed needed to prove once again it was serious about fighting inflation,” said Barry Gilbert, asset allocation strategist for LPL Financial. “The more aggressive stance can still be consistent with a softish landing for the economy, but the path is getting narrower.”
The Fed’s so-called dot plot, which the US central bank uses to signal its outlook for the path of interest rates, shows the median year-end projection for the federal funds rate moved up to 3.4%.
The estimate for the end of 2023 was boosted to near 3.8%.
Key events this week:
* Bank of England rate decision, Thursday.
* US housing starts, initial jobless claims, Thursday.
* Bank of Japan policy decision, Friday.
* Eurozone CPI, Friday.
* US Conference Board leading index, industrial production, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.5%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 1.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.9%
* The euro rose 0.4% to $1.0458
* The British pound rose 1.6% to $1.2189
* The Japanese yen rose 1.3% to 133.73 per dollar
Bonds
* The yield on 10-year Treasuries declined 17 basis points to 3.31%
* Germany’s 10-year yield declined 11 basis points to 1.64%
* Britain’s 10-year yield declined 12 basis points to 2.47%
Commodities
* West Texas Intermediate crude fell 2.6% to $115.78 a barrel
* Gold futures rose 1.2% to $1,835.30 an ounce
–With assistance from Andreea Papuc, Robert Brand, Cecile Gutscher, Vildana Hajric, Elaine Chen, Isabelle Lee and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

I am still learning.
-Michelangelo’s motto.

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: Watch for the strawberry supermoon which rises tonight.
Strawberry supermoon of June rises Tuesday. What to expect.

On June 14, 1982, Argentine forces surrendered to British troops on the disputed Falkland Islands.  Go to article »

America’s most outstanding restaurant is….Calling all foodies! These outstanding restaurants earned prestigious James Beard Awards at the annual ceremony on Monday. 
 
Physicists link two time crystals in seemingly impossible experiment:  Physicists have created a system of two connected time crystals, which are strange quantum systems that are stuck in an endless loop to which the normal laws of thermodynamics do not apply. By connecting two time crystals together, the physicists hope to use the technology to eventually build a new kind of quantum computer.  “It is a rare privilege to explore a completely novel phase of matter,” Samuli Autti, the lead scientist on the project from Lancaster University in the United Kingdom, told Live Science in an email.
Full Story: Live Science (6/14) 

Silver coin featuring famous Viking king unearthed in Hungary:  A metal detectorist has discovered a small silver coin marked with the name of a famous Viking king. However, it was unearthed not in Scandinavia, but in southern Hungary, where it was lost almost 1,000 years ago.   The find has baffled archaeologists, who have struggled to explain how the coin might have ended up there — it’s even possible that it arrived with the traveling court of a medieval Hungarian king.  Full Story: Live Science (6/12) 

Google AI ‘is sentient,’ software engineer claims before being suspended:  A senior software engineer at Google was suspended on Monday (June 13) after sharing transcripts of a conversation with an artificial intelligence (AI) that he claimed to be “sentient,” according to media reports. The engineer, 41-year-old Blake Lemoine, was put on paid leave for breaching Google’s confidentiality policy.
“Google might call this sharing proprietary property. I call it sharing a discussion that I had with one of my coworkers,” Lemoine tweeted on Saturday (June 11) when sharing the transcript of his conversation with the AI he had been working with since 2021.  Full Story: Live Science (6/13) 

This country is expected to attract the most millionaires this year. 
PHOTOS OF THE DAY

A house falls into the swollen Yellowstone River during flooding in Montana
CREDIT: Angie Lilly/Reuters

A woman in a hat adorned with butterflies attends day one of Royal Ascot
CREDIT: David Davies/PA

Jeff Koons’ sculpture Balloon Monkey (Magenta), 2006-13, with an estimate of £6m-£10m, is placed on display in St James’s Square before being sold by Christie’s to raise funds for humanitarian aid for Ukraine
CREDIT: Yui Mok/PA

Market Closes for June 14^th, 2022

Market Index	Close	Change
Dow Jones	30364.83	-151.91
		-0.50%
S&P 500	3735.48	-14.15
		-0.38%
NASDAQ	10828.35	+19.12 +0.18%
TSX	19548.51	-194.04
		-0.98%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26629.86	-357.58
		-1.33%
HANG SENG	21067.99	+0.41
		+%
SENSEX	52693.57	-153.13
		-0.29%
FTSE 100*	7187.46	-18.35 -0.25%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.622	3.516
CND. 30 Year Bond	3.404	3.310
U.S.    10 Year Bond	3.4733	3.3598
U.S. 30 Year Bond	3.4243	3.3476

Currencies

BOC Close	Today	Previous
Canadian $	0.7720	0.7755
US $	1.2953	1.2895
Euro Rate 1 Euro=		Inverse
Canadian $	1.3490	0.7413
US $	1.0414	0.9602

Commodities

Gold	Close	Previous
London Gold Fix	1830.85	1830.00
Oil
WTI Crude Future	118.93	120.93

Market Commentary:
On this day in 1949, the Dow Jones Industrial Average finished the day at 161.86, up 0.26 points, as the longest bull market of all time began. Stocks went up nearly non-stop for the entire decade of the 1950s, finally peaking Dec. 13, 1961, at 734.91, a 355% gain (or roughly 13% annually).
Canada
By Stefanie Marotta
(Bloomberg) — Canadian stocks fell for the fifth straight session, marking the longest losing streak in one month, as telecommunications and utilities stocks led losses amid escalating concerns over interest rate hikes.
The S&P/TSX Composite fell 1%, or 194.04 to 19,548.51 in Toronto.
The index dropped to the lowest closing level in at least a year.
Today, energy stocks led the market lower, as 9 of 11 sectors lost. Enbridge Inc. contributed the most to the index decline, decreasing 1.9%.
Bombardier Inc. had the largest drop, falling 18.2%.
Insights
* This quarter, the index fell 11%, heading for the biggest decline since the first quarter of 2020
* The index declined 3% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is at its 52-week low and 12% below its high on April 5, 2022
* The S&P/TSX Composite is down 6.6% in the past 5 days and fell 2.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.2 on a trailing basis and 12 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.16t
* 30-day price volatility fell to 20.60% compared with 20.79% in the previous session and the average of 20.40% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -67.1797| -1.7| 2/29
* Financials | -41.2929| -0.7| 7/21
* Communication Services | -25.4136| -2.6| 1/6
* Utilities | -23.1189| -2.3| 1/15
* Information Technology | -14.5574| -1.5| 7/9
* Materials | -12.1687| -0.5| 9/42
* Real Estate | -6.6304| -1.3| 2/21
* Consumer Discretionary | -0.4393| -0.1| 6/8
* Health Care | -0.2515| -0.3| 4/4
* Consumer Staples | 0.3409| 0.0| 3/8
* Industrials | 1.9389| 0.1| 14/16
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Enbridge | -15.3200| -1.9| -24.1| 12.6
* TD Bank | -12.0400| -1.1| 71.7| -7.9
* Barrick Gold | -8.8080| -2.8| 26.3| 4.8
* Canadian Pacific | 4.7300| 0.8| 8.6| -2.5
* Canadian National | 6.5530| 1.1| -41.6| -9.6
* Nutrien | 16.6400| 4.0| 1.3| 18.8

US
By Rita Nazareth
(Bloomberg) — Volatility continued to grip financial markets on concern the Federal Reserve’s aggressive stance to fight stubbornly high inflation will throw the world’s largest economy into a recession.
After facing several twists and turns, the S&P 500 closed down for a fifth straight day — its longest losing streak since January.
The technology-heavy Nasdaq 100 climbed as Oracle Corp.’s forecast suggested the effort to move customers to the cloud is gaining momentum. Economic bellwether FedEx Corp. soared the most in almost 36 years after boosting its dividend.
Traders remained cautious ahead of the Fed’s decision Wednesday and have now almost fully priced in a 75-basis-point hike, the biggest since 1994.
Treasuries extended their worst rout in decades, with two-year yields hitting a level last seen in 2007.
In just three days, those short-term rates have increased more than 60 basis points.
A closely watched part of the US curve inverted briefly, signaling concerns that restrictive policy may take a bigger toll on the economy.
The dollar rallied, the Japanese yen sank to a 24-year low, while the pound slid to its lowest since March 2020.

“The volatility today is a testament to the uncertainty going into the FOMC meeting as well as concerns about the impact such an aggressive ramp of tightening could have the economy,” said Seema Shah, chief global strategist at Principal Global Investors, referring to the Federal Open Market Committee. “The 75-basis-point possibility was a far-flung risk this time last week, so market participants are having to quickly revisit Fed, economy and market forecasts.”
Investor fears of stagflation are at the highest since the 2008 financial crisis, while global growth optimism has tumbled to a record low, according to Bank of America Corp.’s monthly fund manager survey. Global profit expectations also dropped to 2008 levels, with BofA strategists noting that prior troughs in earnings expectations occurred during other major Wall Street crises, such as the Lehman Brothers bankruptcy and the bursting of the dot-com bubble.
More Comments:
* “There will be an elevated level of volatility,” wrote Jim Caron, portfolio manager and chief fixed-income strategist at Morgan Stanley Investment Management. “While the Fed’s primary goal is to reduce wage inflation, this may instead deflate asset prices.”
* “This is one of those environments where it is getting rougher,” said Jason Pride, chief investment officer of private wealth at Glenmede. “In our index, we’re seeing some nascent, but I would argue, not fully-throated signs of oversold conditions. So it’s flashing like this weird and somewhat inconvenient weak buy signal — as opposed to like some sort of really strong oversold capitulation, high-conviction buy
signal.”
* “New money should be patient money as investment psychology has shifted to the negative side,” said George Ball, chairman of Sanders Morris Harris. “It’s better to miss the bottom of a market and buy on the way up than to guess where the exact bottom is.”
* “Fed rate hikes and global central bank tightening will bring about slower growth,” wrote Dennis DeBusschere, the founder of 22V Research. “The question is how fast growth needs to slow to generate a policy-friendly inflation trend. Slower growth that doesn’t trigger a sharp recession, should lead to both lower 10-year yields and a lower equity risk premium. Under that backdrop, there is a good amount of upside to equities.”
Hedge funds tracked by Goldman Sachs Group Inc. offloaded US equities for a seventh straight day Monday, with the dollar amount of selling over the last two sessions exploding to levels not seen since
the firm’s prime broker began tracking the data in April 2008.
It’s the fourth bear market for the S&P 500 over the past two decades. 
While the Covid-19-fueled slump of 2020 was followed by a rapid recovery, other bear markets took much longer to bounce back.
The gauge fell 51% from peak to trough from 2000 to 2002, and by 58% during the global financial crisis.
In both of those cases, it took more than 1,000 trading days to claw back the losses.
Elsewhere, US natural gas futures plummeted and European prices surged after the operator of a key Texas export terminal said it may take three months to partially restart the facility following a fire last week.
What to watch this week:
* FOMC rate decision, Chair Jerome Powell briefing, US business inventories, empire manufacturing, retail sales, Wednesday.
* ECB President Christine Lagarde due to speak, Wednesday.
* Bank of England rate decision, Thursday.
* US housing starts, initial jobless claims, Thursday.
* Bank of Japan policy decision, Friday.
* Eurozone CPI, Friday.
* US Conference Board leading index, industrial production, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.2%
* The Dow Jones Industrial Average fell 0.5%
* The MSCI World index fell 0.7%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro was little changed at $1.0415
* The British pound fell 1.2% to $1.1987
* The Japanese yen fell 0.6% to 135.20 per dollar
Bonds
* The yield on 10-year Treasuries advanced 11 basis points to 3.47%
* Germany’s 10-year yield advanced 13 basis points to 1.76%
* Britain’s 10-year yield advanced six basis points to 2.59%
Commodities
* West Texas Intermediate crude fell 2.1% to $118.34 a barrel
* Gold futures fell 1.3% to $1,808.60 an ounce
–With assistance from Andreea Papuc, Robert Brand, Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Integrity is not a conditional word.  It doesn’t blow in the wind or change with the weather. 
It is your inner image of yourself, and if you look in there and see a man who won’t cheat,
then you know he never will. –John D. MacDonald, 1916-1896.

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:
On this day in 1381, Wat Tyler led the first English popular rebellion, which became known as “The Peasants’ Revolt”.
1983: The U.S. space probe Pioneer 10 became the first spacecraft to leave the solar system as it crossed the orbit of Neptune.   Go to article »
1966: “Miranda” rights established.
2000: South Korean President Kim Dae-Jung meets North Korean leader Kim Jong II in a summit that marks the first meeting between heads of the two countries, helping earn Kim Dae-Jung the Nobel Peace Prize.

William Butler Yeats, poet, b.1865.

Photos of chickens, taken by chickens.

Galapagos tortoise species turns out to not be extinct. (h/t Ellen Kominers)

Face of wealthy Bronze-Age Bohemian woman revealed in stunning reconstruction: Researchers have reconstructed the face of a petite, dark-haired woman who was among the richest residents of Bronze-Age Bohemia.  The woman was buried with five bronze bracelets, two gold earrings and a three-strand necklace of more than 400 amber beads. Also entombed with her were three bronze sewing needles. She was part of the Únětice culture, a group of peoples from early Bronze Age Central Europe known for their metal artifacts, including ax-heads, daggers, bracelets and twisted-metal necklaces called torcs.  Full Story: Live Science (6/13) 

Discovery of ‘hidden world’ under Antarctic ice has scientists ‘jumping for joy’:  A never-before-seen ecosystem lurks in an underground river deep below the icy surface in Antarctica. Researchers recently brought this “hidden world” into the light, revealing a dark and jagged cavern filled with swarms of tiny, shrimplike creatures.   The scientists found the secret subterranean habitat tucked away beneath the Larsen Ice Shelf — a massive, floating sheet of ice attached to the eastern coast of the Antarctic peninsula that famously birthed the world’s largest iceberg in 2021. Satellite photos showed an unusual groove in the ice shelf close to where it met with the land, and researchers identified the peculiar feature as a subsurface river, which they described in a statement. The team drilled down around 1,640 feet (500 meters) below the ice’s surface using a powerful hot-water hose to reach the underground chamber.  Full Story: Live Science (6/10) 

PHOTOS OF THE DAY

Giant pandas are seen at Chengdu Research Base of Giant Panda Breeding.
CREDIT: VCG/Getty Images

People watch the large swells at Bronte Beach in the city’s eastern suburbs
CREDIT: Bianca de Marchi/EPA

Cynthia Erivo attends the 75th annual Tony awards at Radio City Music Hall
CREDIT: Bryan Bedder/Getty Images for Tony Awards Productions

Market Closes for June 13^th, 2022

Market Index	Close	Change
Dow Jones	30516.74	-876.05
		-2.79%
S&P 500	3749.63	-151.23
		-3.88%
NASDAQ	10809.23	-530.79 -4.68%
TSX	19742.56	-532.26
		-2.63%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	26987.44	-836.85
		-3.01%
HANG SENG	21067.58	-738.60
		-3.39%
SENSEX	52846.70	-1456.74
		-2.68%
FTSE 100*	7205.81	-111.71 -1.53%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.516	3.347
CND. 30 Year Bond	3.310	3.193
U.S.    10 Year Bond	3.3598	3.1555
U.S. 30 Year Bond	3.3476	3.1935

Currencies

BOC Close	Today	Previous
Canadian $	0.7755	0.7825
US $	1.2895	1.2784
Euro Rate 1 Euro=		Inverse
Canadian $	1.3424	0.7449
US $	1.0411	0.9606

Commodities

Gold	Close	Previous
London Gold Fix	1830.00	1844.85
Oil
WTI Crude Future	120.93	120.67

Market Commentary:
On this day in 1991, the New York Stock Exchange began after-hours trading for the first time, as two “crossing sessions” of trades among institutional investors extended the trading day to 5:15 p.m. ET.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities slumped to a one-month low, with the benchmark index falling into a correction, as investors fled risk assets amid concerns over rising inflation.
The S&P/TSX Composite fell for the fourth day, dropping 2.6%, or 532.26 to 19,742.56 in Toronto.
The move was the biggest since falling 3.1% on May 9.
Today, energy stocks led the market lower, as all sectors lost; 225 of 239 shares fell, while 11 rose.
Shopify Inc. contributed the most to the index decline, decreasing 9.4%.
Lightspeed Commerce Inc. had the largest drop, falling 14.4%..
Insights
* In the past year, the index had a similar or greater loss once
* This quarter, the index fell 9.8%, heading for the biggest decline since the first quarter of 2020
* The index declined 2% in the past 52 weeks. The MSCI AC Americas Index lost 13% in the same period
* The S&P/TSX Composite is 11.1% below its 52-week high on April 5, 2022 and 1.3% above its low on May 12, 2022
* The S&P/TSX Composite is down 5.2% in the past 5 days and fell 1.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.3 on a trailing basis and 12.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.24t
* 30-day price volatility rose to 20.79% compared with 19.31% in the previous session and the average of 20.33% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -123.4715| -3.1| 1/33
* Financials | -123.0637| -2.0| 0/28
* Materials | -117.8748| -4.5| 1/50
* Information Technology| -46.9934| -4.5| 1/15
* Industrials | -35.7626| -1.6| 4/26
* Real Estate | -17.9214| -3.4| 0/23
* Communication Services| -15.9842| -1.6| 0/6
* Consumer Discretionary| -15.5556| -2.4| 2/12
* Utilities | -14.7767| -1.5| 1/15
* Consumer Staples | -11.6346| -1.5| 1/9
* Health Care | -3.9606| -5.1| 0/8
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Shopify | -32.6700| -9.4| -13.4| -76.9
* Canadian Natural Resources | -27.5300| -4.1| 89.6| 48.6
* Enbridge | -20.0600| -2.5| 34.0| 14.8
* Ritchie Bros | 0.8670| 1.5| -5.7| 0.1
* Imperial Oil | 1.2080| 1.2| 92.7| 53.4
* Constellation Software | 2.1190| 0.8| 88.0| -19.
US
By Rita Nazareth
(Bloomberg) — US stocks hurtled toward a bear market, Treasury yields spiked to levels not seen in a decade and the dollar rallied as the fallout from a hot inflation reading continued to rattle global trading already shaken by worries the Federal Reserve will plunge the economy into a recession.
Another brutal bout of selling sent the S&P 500 to a 15-month low and down more than 20% from its January peak.
Highly valued tech shares bore the brunt of the rout, with the Nasdaq 100 slumping about 3.5%.
The Cboe Volatility Index jumped above 30 and the futures curve inverted in a rare instance of traders pricing in more uncertainty in the here-and-now than in three months.
Speculative areas of the market inflated by years of Fed and government largesse buckled.
Profitless software firms, newly public companies and blank-check entities sold off.
Bitcoin plummeted below $24,000 after a lending platform ceased operations.
Credit markets continued their historic repricing of rate trajectories.
Treasury 10-year yields climbed 20 basis points to the highest since 2011 while two-year rates jumped to levels last seen before the 2008 crisis.
The cost to protect investment-grade debt from default surged to a two-year high as a closely watched segment of the US curve inverted amid recession fears.
Only the dollar provided a respite from the selloff, having its biggest four-day rally since the onset of the pandemic.
“It’s going to get a little uglier,” said Victoria Greene, chief investment officer at G Squared Private Wealth. “It’s going to be very hard for stocks to rally when the Fed continues to put hawkish pressure. There’s no way they can slam on the brakes with inflation without slamming on the brakes economically speaking. It’s funny we still have recession deniers.”
Financial markets are bracing for the Fed to turn very hawkish after its meeting Wednesday.
Traders are now pricing in 175 basis points of tightening by September — implying two half-point and one 75-basis-point hike.
If that comes to pass, it would be the first time since 1994 the Fed resorted to such an aggressive pace.
Officials are muzzled before the decision in two days and Chair Jerome Powell’s conference, where the characterization of inflation and long-term forecasts for the fed funds target — the so-called dot plot — will be critical.

As the Fed attempts to boost its credibility on inflation, it could reach for a more drastic increase if it’s compelled to demonstrate a “Volcker moment,” said Steven Englander, global head of Group-of-10 currency research at Standard Chartered Bank.
He was referring to Fed Chair Paul Volcker, who crushed inflation with a series of historic rate increases, starting in 1979.
With that possibility, Englander predicts there’s a 10% chance of a 100-basis-point increase Wednesday — with his baseline still a half-percentage point increase.
The dramatic moves in the world’s biggest bond market spell further trouble for battered US equities.
Recent history shows that stocks tend to swoon when the 10-year Treasury yield hits 3%, as seen in early May and in late 2018, according to DataTrek Research’s Nicholas Colas.
It topped 3.3% Monday.
Equities still aren’t fully reflecting the risks facing corporate earnings, according to strategists at Morgan Stanley, Goldman Sachs Group Inc. and BlackRock Investment Institute.
Weaker consumer demand and aggressive tightening by the Fed in an attempt to fight the hottest US inflation in four decades can do further damage to bottom lines and, in turn, share prices.
For Evercore strategist Julian Emanuel, “what’s been missing the last several months is sort of what I would call a ‘cathartic flush out,’ where you get the VIX above 40, which is one of the things you need for at least a trading bottom.”
The last bulwark in stocks is in danger of shattering, if the mood of chief executive officers is any indication.
A survey of sentiment among corporate stewards by the Conference Board  showed that CEO confidence declined sharply in the second quarter of the year for the fourth straight time.
Similar skepticism in the past has always coincided with a recession in profits, wrote Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.

More comments:
* “The idea that there is some Goldilocks outcome in the cards or soft landing is a mockery,” wrote Danielle DiMartino Booth, chief strategist of Quill Intelligence. “While tightening into a recession is no easy task, the Federal Reserve must indicate a willingness to raise interest rates by more than a half-percentage point at upcoming meetings if inflation continues to surprise to the upside.”
* “Chairman Jerome Powell and his colleagues are walking a monetary policy tightrope hoping to avoid a recession while dampening demand,” wrote Mark Hamrick, senior economic analyst at Bankrate.com. “This year’s decline in stock prices and rise in bond yields are among the more obvious consequences of the Fed’s actions.”
* “There has been no follow-through by the bulls,” wrote JC O’Hara, chief market technician at MKM Partners. “Until they have a data point to celebrate, investors will continue to shed risk assets. The largest risk now is that interest-rate expectations are still too low and earnings expectations are still too high.”
The damage in the highly speculative crypto market took on staggering contours as the value of all assets sank below $1 trillion, down by two-thirds from the heady levels reached in November.
Bitcoin and its cousins have largely tracked risk assets, but the latest leg down — as much as 17% for the world’s largest digital token — came with concern that the freezing of withdrawals at the Celsius lending platform might indicate systemic risk in the crypto world that could accelerate the meltdown.
“You can’t have these massive drawdowns without some real damage being done and real money being lost,” said Art Hogan, chief market strategist at National Securities. “The volatility is inherent in both directions.”
What to watch this week:
* US PPI, Tuesday.
* China key economic activity data, liquidity operations, medium-term lending facility, Wednesday.
* FOMC rate decision, Chair Jerome Powell briefing, US business inventories, empire manufacturing, retail sales, Wednesday.
* ECB President Christine Lagarde due to speak, Wednesday.
* Bank of England rate decision, Thursday.
* US housing starts, initial jobless claims, Thursday.
* Bank of Japan policy decision, Friday.
* Eurozone CPI, Friday.
* US Conference Board leading index, industrial production, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 3.4% as of 3 p.m. New York time
* The Nasdaq 100 fell 4%
* The Dow Jones Industrial Average fell 2.5%
* The MSCI World index fell 3.3%
Currencies
* The Bloomberg Dollar Spot Index rose 1%
* The euro fell 0.9% to $1.0424
* The British pound fell 1.4% to $1.2140
* The Japanese yen rose 0.1% to 134.23 per dollar
Bonds
* The yield on 10-year Treasuries advanced 20 basis points to 3.36%
* Germany’s 10-year yield advanced 12 basis points to 1.63%
* Britain’s 10-year yield advanced eight basis points to 2.53%
Commodities
* West Texas Intermediate crude was little changed
* Gold futures fell 2.6% to $1,826.90 an ounce
–With assistance from Sunil Jagtiani, Denitsa Tsekova, Robert rand, Vildana Hajric, Peyton Forte, Lu Wang, Isabelle Lee and James Crombie.
Have  a lovely evening.

Be magnificent!
As ever,
And say my glory was I had such friends. –William Butler Yeats, 1865-1939.

Carolann

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.
1940: Italy declared war on France and Britain; Canada declared war on Italy.   Go to article »
1910: Ballpoint pen patented.

Perseverance rover has made a friend on Mars.  The rover has a new pet on the red planet! But it’s probably not the type of pet you’re thinking of.

11-year-old gets plucked from audience and stuns judges on ‘America’s Got Talent’.  And just like that, a star is born. 

Mystery creature is caught on camera and authorities need help ID’ing it.  Texas officials are asking the public to help identify this mystery “wolfman” creature. What do you think it is? 

Scientists discover viruses that secretly rule the world’s oceans.  Thousands of mysterious viruses that were recently discovered lurking in the world’s oceans may exert huge influence over the ecosystems, in part by “reprogramming” the hosts they infect, scientists reported.  The new research, published Thursday (June 9) in the journal Science, focuses on viruses that contain RNA, a molecular cousin of DNA. Examples of RNA viruses abound in human disease; for instance, coronaviruses and influenza viruses are both RNA-based. However, when it comes to the RNA viruses in the ocean, scientists are only just learning about the variety that can be found and the range of hosts they can infect.  Full Story: Live Science (6/9) 

‘Rubber-ducky’ asteroid 200 million miles away holds building blocks of life.  For the first time, scientists have found the building blocks for life on an asteroid in space.  Japanese researchers have discovered more than 20 amino acids on the space rock Ryugu, which is more than 200 million miles from Earth.  Full Story: Live Science (6/9) 
 
Weird type of fast radio burst discovered 3 billion light-years away.  Astronomers have used two of the world’s largest radio telescopes to discover the second-known example of a new type of fast radio burst (FRB) — the mysterious, extremely powerful explosions of radio waves that pulse through space thousands of times a day.  The new FRB, called FRB 190520, is strong evidence that multiple celestial objects could be the source of these enigmatic signals.  Full Story: Live Science (6/9) 
PHOTOS OF THE DAY

A Bonelli’s eagle in a breeding centre in the western Pays de la Loire region
CREDIT: Sebastien Salom-Gomis/AFP/Getty Images

A man rides his bike over a hill on the outskirts of the city as the sun rises
CREDIT: Michael Probst/AP

A night view of the ancient town area of the city in north-western Gansu province. A block of historical buildings has been recently renovated in an attempt to preserve the city’s cultural heritage
CREDIT: Xinhua/Rex/Shutterstock

Market Closes for June 10^th, 2022

Market Index	Close	Change
Dow Jones	31392.79	-880.00
		-2.73%
S&P 500	3900.86	-116.96
		-2.91%
NASDAQ	11340.02	-414.21 -3.52%
TSX	20274.82	-289.07
		-1.41%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27824.29	-422.24
		-1.49%
HANG SENG	21806.18	-62.87
		-0.29%
SENSEX	54303.44	-1016.84
		-1.84%
FTSE 100*	7317.52	-158.69 -2.12%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.347	3.232
CND. 30 Year Bond	3.193	3.133
U.S.    10 Year Bond	3.1555	3.0418
U.S. 30 Year Bond	3.1935	3.1630

Currencies

BOC Close	Today	Previous
Canadian $	0.7825	0.7873
US $	1.2784	1.2700
Euro Rate 1 Euro=		Inverse
Canadian $	1.3443	0.7439
US $	1.0520	0.9506

Commodities

Gold	Close	Previous
London Gold Fix	1844.85	1852.95
Oil
WTI Crude Future	120.67	121.51

Market Commentary:
On this day in 1997, the Dow Jones Industrial Average closed above 7,500 for the first time, and The Wall Street Journal noted that the market’s climb “seems to inspire equal parts awe and dread among many investors.” 
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities notched their worst week since mid-May as a hot US consumer-price index added to concern the Federal Reserve may be even more aggressive with rate hikes.
The S&P/TSX Composite fell for the third day, dropping 1.4%, or 289.07, to 20,274.82 in Toronto.
The move was the biggest since May 18.
Canadian Pacific Railway Ltd. contributed the most to the index’s dropped, tumbling 4%.
Goeasy Ltd. had the largest drop, falling 7.9%.
On Friday, 190 of 239 shares fell, while 48 rose; all sectors but materials retreated.
Insights
* In the past year, the index had a similar or greater loss 12 times. The next day, it declined eight times for an average 0.7% and advanced four times for an average 0.3%
* This quarter, the index fell 7.4%, heading for the biggest decline since the first quarter of 2020
* So far this week, the index fell 2.5%
* The index advanced 1.1% in the past 52 weeks. The MSCI AC Americas Index lost 9.7% 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
* S&P/TSX Composite is trading at a price-to-earnings ratio of  15.8 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$3.29t
* 30-day price volatility fell to 19.31% compared with 19.52% in the previous session and the average of 19.98% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -133.5501| -2.1| 1/27
* Industrials | -53.2735| -2.3| 2/28
* Energy | -52.8648| -1.3| 0/34
* Information Technology| -41.9028| -3.8| 1/15
* Consumer Discretionary| -19.9804| -3.0| 0/14
* Real Estate | -12.5743| -2.3| 0/23
* Consumer Staples | -10.5027| -1.3| 4/7
* Communication Services| -8.1853| -0.8| 1/6
* Health Care | -2.8239| -3.5| 1/7
* Utilities | -2.1502| -0.2| 7/9
* Materials | 53.3680| 2.1| 31/20
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Canadian Pacific | -23.4600| -4.0| 9.5| -2.1
* Royal Bank of Canada | -23.2500| -1.8| -23.7| -4.2
* Shopify | -20.9000| -5.7| -17.5| -74.5
* Franco-Nevada | 10.3800| 4.4| 0.4| 7.2
* Agnico Eagle Mines | 11.8500| 5.8| 9.2| 2.7
* Barrick Gold | 16.6400| 5.3| 67.6| 11.8
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — US stocks tumbled the most in three weeks and Treasury yields spiked higher after an unexpectedly hot reading in consumer prices fueled bets the Federal Reserve will have to step up its battle against inflation.
The S&P 500 fell 2.9%, closing out the second worst week this year and the ninth weekly drop in the past 10, as fears mounted that efforts to combat inflation risk stifling growth.
Tech shares bore the brunt of Friday’s rout, with the Nasdaq 100 tumbling more than 3%.
Growth stocks from Cathie Wood’s flagship ETF to software developers and chipmakers plunged.
A separate report showed US consumer sentiment dropped in early June to a record, adding to pressure on shares of airlines, casinos and hotels.
In the Treasury market, two-year yields topped 3%, a level not seen since 2008, while the move in short rates left 30-year yields below those on five-year notes, signaling the risk that tightening will slow growth.
Bitcoin slid back below $30,000, the Cboe Volatility Index surged to 29 and the dollar advanced.

Rates traders ramped up bets on Fed hikes, with three half-point increases now likely over the June, July and September policy meetings, according to market-derived prices.
The central bank has signaled it will likely raise rates by 50 basis points when it meets next week.
The consumer price index rose 1% from a month earlier and 8.6% on the year, topping all estimates.
Shelter, food and gas were the largest contributors.
The so-called core CPI, which strips out the more volatile food and energy components, rose 0.6% from the prior month and 6% from a year ago, also above forecasts.
“It is straightforward bad,” Dennis DeBusschere, the founder of 22V Research, said. “Flat month-over-month on core  means more financial conditions tightening. Powell should sound pretty hawkish next week given the tight labor market and core CPI that didn’t fall month-over-month. The reaction in the front end was massive relative to long end.”
Separately, the University of Michigan’s preliminary June sentiment index fell to 50.2 from 58.4 in May, data released Friday showed.
The figure was weaker than all estimates in a Bloomberg survey of economists which had a median forecast of 58.1.
Wall Street weighs in on inflation, rates and stocks:
* “From a Fed perspective, the chase continues, and more aggressive Fed measures will likely be needed to catch up to runaway inflation,” Charlie Ripley, senior investment strategist for Allianz Investment Management, wrote in a note. “Whether this translates to more aggressive hikes this summer, or a continuation of 50 basis point hikes this fall is the option for the Fed, but the overall reality for the Fed is that inflation is not under control, and they have their work cut out for them in the coming months.”
* “One concerning development we’ve been seeing in prior inflation readings is that the stickier core components were beginning to catch fire – and we saw this accelerate with the latest core print,” said Max Gokhman, chief investment officer for AlphaTrAI. “That means Fed firefighters have to fight harder and that means stock bulls might get burned.”
* “The CPI report is another reminder that equity markets will no longer be coddled by monetary policy,” John Lynch, chief investment officer at Comerica Wealth Management, said in a note. “We look for volatility to continue until equity markets accept that the Fed’s target rate gets to at least 3.0%, and not obsess over the magnitude of incremental moves at the next several policy meetings.”
* “Today’s report should extinguish any pretense that a ‘pause’ in rate hikes will likely be appropriate by the end of summer,” Jason Pride, chief investment officer of private wealth at Glenmede, said in a note. “Investors should expect the Federal Reserve to continue on its 50-bp rate hike path next week and beyond until inflation shows meaningful signs of decelerating toward the Fed’s 2–3% target range.”

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.9% as of 4 p.m. New York time
* The Nasdaq 100 fell 3.6%
* The Dow Jones Industrial Average fell 2.7%
* The MSCI World index fell 2.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.8%
* The euro fell 0.9% to $1.0519
* The British pound fell 1.4% to $1.2312
* The Japanese yen was little changed at 134.38 per dollar
Bonds
* The yield on 10-year Treasuries advanced 11 basis points to 3.15%
* Germany’s 10-year yield advanced nine basis points to 1.52%
* Britain’s 10-year yield advanced 12 basis points to 2.45%
Commodities
* West Texas Intermediate crude fell 0.7% to $120.61 a barrel
* Gold futures rose 1.3% to $1,876.50 an ounce
–With assistance from Cecile Gutscher, Denitsa Tsekova, Peyton Forte, Isabelle Lee and Edward Bolingbroke.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Honor bespeaks worth.
Confidence begets trust.
Service brings satisfaction.
Cooperation proves the quality of leadership. -James Cash Penney, 1875-1971.

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.
Donald Duck, cartoon, b. June 9, 1934.
Cole Porter, composer, b. 1891.
Johnny Depp, actor, b. 1963.
1898: Hong Kong lease signed from Britain.

1940 Norway surrendered to the Nazis during World War II.  Go to article »

How a female Buddhist monk became one of Asia’s most revered chefs.  This vegetarian “temple cuisine” showcases the best of Korean produce.

Marble slab turns out to be an ancient yearbook.

A day in the life of a private chef in the Hamptons. (h/t Ale Lampietti).

PHOTOS OF THE DAY

A visitor looks at a projection of Guernica as part of The Picasso Century exhibition at the NGV International
CREDIT: Diego Fedele/AAP

Kayaks are moored at Lake Solina, a popular tourist destination
CREDIT: Darek Delmanowicz/EPA

An artist sketches the River Eden at the Horse Fair in Appleby, Cumbria, an annual gathering of Travellers
CREDIT: Owen Humphreys/PA
Market Closes for June 9^th, 2022

Market Index	Close	Change
Dow Jones	32272.79	-638.11
		-1.94%
S&P 500	4017.82	-97.95
		-2.38%
NASDAQ	11754.23	-332.04 -2.75%
TSX	20563.89	-228.54
		-1.10%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28246.53	+12.24
		+0.04%
HANG SENG	21869.05	-145.54
		-0.66%
SENSEX	55320.28	+427.79
		+0.78%
FTSE 100*	7476.21	-116.79 -1.54%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.232	3.268
CND. 30 Year Bond	3.133	3.191
U.S.    10 Year Bond	3.0418	3.0215
U.S. 30 Year Bond	3.1630	3.1714

Currencies

BOC Close	Today	Previous
Canadian $	0.7873	0.7965
US $	1.2700	1.2555
Euro Rate 1 Euro=		Inverse
Canadian $	1.3487	0.7415
US $	1.0619	0.9417

Commodities

Gold	Close	Previous
London Gold Fix	1852.95	1849.60
Oil
WTI Crude Future	121.51	122.11

Market Commentary:
On this day in 1943, federal income tax withholding was implemented for the first time. Originally proposed by Beardsley Ruml, an executive at Macy’s department store who had encouraged shoppers to buy on the installment plan, withholding was called “pay as you go” and was coupled with an amnesty for the previous year’s taxes. 
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian banks and oil companies led a broad sell-off in Toronto, in which every S&P/TSX Composite sector except for utilities.
The index dropped 1.1%, or 228.54 to 20,563.89, to its lowest closing level since May 26.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 1.7%.
Energy Fuels Inc. had the largest percentage drop, falling 9.2%.
Today, 207 of 239 shares fell, while 30 rose; 10 of 11 sectors were lower, led by financials.
Insights
* In the past year, the index had a similar or greater loss 18 times. The next day, it declined nine times for an average 0.6% and advanced nine times for an average 0.5%
* This quarter, the index fell 6.1%, heading for the biggest decline since the first quarter of 2020
* So far this week, the index fell 1.1% * The index advanced 2.8% in the past 52 weeks. The MSCI AC Americas Index lost 6.5% in the same period
* The S&P/TSX Composite is 7.4% below its 52-week high on April 5, 2022 and 5.6% above its low on May 12, 2022
* The S&P/TSX Composite is down 2.2% in the past 5 days and rose 2.8% 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 12.9 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$3.33t
* 30-day price volatility fell to 19.52% compared with 20.05% in the previous session and the average of 19.93% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -77.6558| -1.2| 2/26
* Energy | -47.7704| -1.2| 1/32
* Materials | -31.0243| -1.2| 3/48
* Industrials | -18.8272| -0.8| 6/24
* Information Technology | -18.2277| -1.6| 1/15
* Communication Services | -9.9106| -1.0| 2/5
* Consumer Discretionary | -7.2363| -1.1| 1/13
* Real Estate | -6.4945| -1.2| 1/22
* Consumer Staples | -4.8205| -0.6| 2/9
* Health Care | -3.2937| -3.9| 0/8
* Utilities | 1.3884| 0.1| 11/5
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* TD Bank | -19.8200| -1.7| -46.5| -3.8
* Shopify | -15.3700| -4.0| -17.2| -72.9
* Bank of Montreal | -9.9900| -1.6| 15.7| -1.1
* Thomson Reuters | 1.9880| 1.4| 15.2| -16.6
* Constellation Software | 5.5840| 2.2| -18.8| -17.8
* Nutrien | 9.1720| 2.2| 20.3| 19.2
US
By Stephen Kirkland and Peyton Forte
(Bloomberg) — US stocks fell for a second day with growth concerns in focus after Europe’s central bank became the latest to signal restrictive policies to combat inflation.
The dollar gained and Treasury yields rose.
Selling accelerated in the last hour of trading, with the S&P 500 closing down 2.4% in the biggest one-day drop in three weeks.
The tech-heavy Nasdaq 100 underperformed, with Apple Inc., Meta Platforms Inc. and Amazon.com Inc. down more than 3%.

In a widely anticipated move, the European Central Bank made no change to the deposit rate but prepared to hike by a quarter-point next month, and again by either that amount or more if inflation — which now exceeds 8% in the euro area — warrants a tougher stance.
“If the ECB are even considering an outsized rate hike, I think that sort of says quite a lot about how concerned central banks are and should be about levels of inflation,” Fiona Cincotta, senior market analyst at City Index, said by phone.  “Central banks are showing a willingness to act aggressively to get inflation back under control, and that is going to make the growth environment much more challenging.”
In corporate news, Tesla Inc. rose after the company said output of cars made in China more than tripled.
The stock later pared gains as US authorities announced they have expanded a probe into automaker’s Autopilot system.
Shares in State Street Corp. briefly spiked higher after the firm said it’s not pursuing any acquisition or business combination with Credit Suisse Group AG.
The dollar gained versus all of its major counterparts, except the yen in a sign of a pickup in demand for haven currencies.
In the debt market, Treasuries fell across most maturities in sympathy with European peers, with benchmark yields holding above 3%.
The rate on German government 10-year bonds jumped seven basis points after the ECB decision.
ECB policy makers have lagged global peers at the Federal Reserve, Bank of Canada and Reserve Bank of Australia which have embarked on aggressive campaigns to subdue runaway inflation this year, hiking in 50-basis point increments.
On the inflation front, data due Friday will be closely watched for clues on the Fed’s rate path.
The data is expected to show consumer prices picked up from a month ago, but eased slightly from a year earlier though stayed above 8%.
That will likely keep pressure on policy makers to stay the course on aggressive rate hikes.

* “With markets obsessively focused on the path of inflation, and gearing up for tomorrow’s CPI report, the ECB’s slow growth high inflation forecast has done little to ease fears of deepening stagflation,”  Quincy Krosby, chief equity strategist for LPL Financial, said. “Certainly there are clear signs that the economy is softening following the Fed’s launch of interest-rate hikes, but the question remains if inflation can be reined in deeply enough without damaging the core of the US economy — and corporate earnings as well.”
* “There’s a lot of sitting out and waiting. For the ones who believe things could be OK going forward, they are just waiting for some kind of confirmation of that so they can go back into the market,” Seema Shah, chief global strategist at Principal Global Investors, said in an interview. “And I think others who are really concerned are like, ‘I don’t want to get involved in a bear-market rally.’ So I think that is a moment of severe caution.”
* “There are wildly divergent opinions amongst economists and market participants as to the probability of a recession,” Matt Kishlansky, head of asset allocation at GenTrust, said in a note. “The most important point to make around the recession fears for me is that unlike some of the other recessions of our lifetimes, companies would be entering this one with their eyes wide open.”
* “To rein in surging prices the Fed has to increase rates, which can result in a recession,” Geir Lode, head of global equities at Federated Hermes, wrote in a note. “However, the pandemic-induced supply-chain shock and the Ukraine conflict are beyond the central bank’s control. In this environment we need to be lucky to avoid stagflation that could last for a long time.”

Oil wavered near $122 a barrel as a robust market for refined fuels around the world offset renewed lockdown in parts of Shanghai, its first major restrictions on movement since the financial hub exited a two-month shutdown at the start of June.
Key events to watch this week:
* US CPI, University of Michigan consumer sentiment Friday
* China CPI, PPI Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.7%
* The Dow Jones Industrial Average fell 1.9%
* The MSCI World index fell 2.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.7%
* The euro fell 1% to $1.0613
* The British pound fell 0.4% to $1.2490
* The Japanese yen fell 0.1% to 134.44 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points to 3.04%
* Germany’s 10-year yield advanced eight basis points to 1.43%
* Britain’s 10-year yield advanced eight basis points to 2.32%
Commodities
* West Texas Intermediate crude fell 0.6% to $121.36 a barrel
* Gold futures fell 0.4% to $1,849.70 an ounce
–With assistance from Farah Elbahrawy, Joanna Ossinger, Sunil Jagtiani, Vildana Hajric, Isabelle Lee, James Hirai, Tassia Sipahutar and Henry Ren.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

The way to develop self-confidence is to do the thing you fear. -William Jennings Bryan, 1860-1925.

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:
June 8, 2020: Former astronaut Kathy Sullivan is the first woman to reach deepest point of the ocean – Challenger Deep in the Marianas Trench.  Formerly the first American woman to spacewalk.
On June 8, 1968, authorities announced the capture in London of James Earl Ray, the suspected assassin of civil rights leader Martin Luther King Jr. Go to article »

Frank Lloyd Wright, architect, b. 1867

50:  That’s how many years it has been since this horrifying photo became a defining image of the Vietnam War and the 20th century. Taken outside the village of Trang Bang on June 8, 1972, the photo shows children fleeing a deadly napalm attack. It became known by the nickname given to the badly burned, naked 9-year-old at its center: “Napalm Girl.” The girl, since identified as Phan Thi Kim Phuc, ultimately survived her injuries and dedicated her life to spreading messages of peace. 

Taco Bell’s new floating restaurant delivers tacos from the sky.  Orders at this new Taco Bell location are delivered via a “vertical lift” to cars. It’s official, we’re living in the future.

Medieval Turkish pirates may have wielded saber discovered in Greece:  A rusty medieval saber, or one-edged sword, unearthed at a fortified Christian monastery in northern Greece might be a deadly weapon that either raiding Turkish pirates or the monastery’s defenders wielded hundreds of years ago.   The discovery of the saber is unusual, as iron weapons from this period usually quickly rust away.
Full Story: Live Science (6/7) 

Five planets are lining up in the night sky this month:  A planetary alignment that has been developing for months is finally here.  Depending on local viewing conditions, Mercury may now be visible alongside Venus, Saturn, Mars and Jupiter in a march across the predawn sky, visible from the Northern Hemisphere. It’s the first alignment of the five visible planets in our solar system since 2020.
Full Story: Live Science (6/7) 

PHOTOS OF THE DAY

A passenger train passing through the Mae Klong railway market. Six times a day local customers and foreign tourists scramble into nooks and crannies while vendors calmly move their woven baskets of goods away from the tracks and close their umbrellas
CREDIT: Manan Vatsyayana/AFP/Getty Images

The peloton rides through Gloucestershire during stage three of the Women’s Tour
CREDIT: David Davies/PA

Charles Smith with his decorated, horse-drawn bowtop, one of thousands of Travellers and Gypsies on the final leg of their journey to the annual Appleby Horse Fair that starts in the Cumbrian town on Thursday
CREDIT: Christopher Thomond/The Guardian

Market Closes for June 8^th, 2022

Market Index	Close	Change
Dow Jones	32910.90	-269.24
		-0.81%
S&P 500	4115.77	-44.91
		-1.08%
NASDAQ	12086.27	-88.96 -0.73%
TSX	20792.43	-135.78
		-0.65%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28234.29	+290.34
		+1.04%
HANG SENG	22014.59	+482.92
		+2.24%
SENSEX	54892.49	-214.85
		-0.39%
FTSE 100*	7593.00	-5.93 -0.08%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.268	3.186
CND. 30 Year Bond	3.191	3.103
U.S.    10 Year Bond	3.0215	2.9736
U.S. 30 Year Bond	3.1714	3.1236

Currencies

BOC Close	Today	Previous
Canadian $	0.7965	0.7979
US $	1.2555	1.2533
Euro Rate 1 Euro=		Inverse
Canadian $	1.3456	0.7432
US $	1.0718	0.9330

Commodities

Gold	Close	Previous
London Gold Fix	1849.60	1847.20
Oil
WTI Crude Future	122.11	119.41

Market Commentary:
On this day in 1999, drkoop.com, Inc. went public on the Nasdaq, selling 9,375,000 shares at $9.00 each. For a brief shining moment, founder Dr. C. Everett Koop’s stake was worth more than $50 million. Within a year, the online health-care company was on its deathbed.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian banks and railroads slid Wednesday, weighing on the S&P/TSX Composite Index, which declined 0.6% to 20,792.43 in Toronto.
Canadian Pacific Railway Ltd. contributed the most to the index decline, decreasing 2.6%.
Enghouse Systems Ltd. had the largest percentage drop, falling 19.8%.
Today, 171 of 239 shares fell, while 64 rose; 8 of 11 sectors were lower.
Insights
* This quarter, the index fell 5%, heading for the biggest decline since the first quarter of 2020
* The index advanced 3.6% in the past 52 weeks. The MSCI AC Americas Index lost 4.4% in the same period
* The S&P/TSX Composite is 6.4% below its 52-week high on April 5, 2022 and 6.7% above its low on May 12, 2022
* The S&P/TSX Composite is up 0.4% 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$3.35t
* 30-day price volatility rose to 20.05% compared with 19.96% in the previous session and the average of 19.95% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -57.9792| -0.9| 4/24
* Industrials | -40.7929| -1.7| 4/26
* Materials | -18.1229| -0.7| 16/34
* Communication Services | -17.6668| -1.7| 0/7
* Real Estate | -5.5463| -1.0| 2/21
* Consumer Staples | -4.8118| -0.6| 3/8
* Utilities | -2.0951| -0.2| 7/9
* Health Care | -1.6835| -2.0| 0/8
* Information Technology | 1.9150| 0.2| 4/12
* Consumer Discretionary | 7.1146| 1.1| 7/7
* Energy | 8.0217| 0.2| 17/15
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Canadian Pacific | -15.5900| -2.6| 10.1| 2.5
* Royal Bank of Canada | -11.9200| -0.9| -6.9| -1.8
* TD Bank | -11.6700| -1.0| 62.4| -2.2
* Dollarama | 7.0380| 5.3| 84.7| 16.1
* Suncor Energy | 8.0290| 1.5| -46.7| 68.5
* Shopify | 11.4500| 3.1| 0.3| -71.8

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — US stocks fell after a two-day rally and oil continued its relentless rise, fueling worries about inflation and measures by central banks to contain it.
The S&P 500 ended near session lows, with all but one of the 11 major sectors in the red.
The tech-heavy Nasdaq 100 dropped 0.8% after rising as much as 0.5%.
Chipmakers were under pressure after Intel Corp.’s chief financial officer said the current quarter wasn’t going as well as expected.
The stock fell more than 5% and the Philadelphia Semiconductor Index lost almost 2.5%.
Losses deepened as the Securities and Exchange Commission chief previewed overhauls to market rules in the agency’s most-direct response yet to last year’s wild trading in GameStop Corp. and other meme stocks.
Benchmark Treasury yields topped the psychological threshold of 3%.
Oil climbed above $120 a barrel as inventory at a highlighted the supply crunch.
“Investors are nervous about being in no-man’s land as we recover from the bear market last month,” Mike Bailey, director of research at FBB Capital Partners, said. “The two big worries were the China lockdowns and inflation, stemming from energy and the Ukraine conflict. Now we are playing whack-a-mole with global macros, and we just knocked out one, with China, but the other problem with inflation and energy is coming back with a vengeance.”
Sentiment remains fragile on concerns rising rates will stifle economic growth and the outlook for corporate earnings.
The European Central Bank Thursday is set to wind down trillions of euros of asset purchases in a prelude to a rate hike expected in July, while data on US consumer prices later in the week is expected to keep pressure on the Federal Reserve to hike rates.
US CPI data on Friday is expected to show inflation picked up in May from a month earlier, while slowing slightly from a year earlier but staying above the 8% level.
That’s likely to keep pressure on the Fed to stick to aggressive rate hikes. 
More market commentary
* “We’re in another environment where the Fed and the inflation outlook, in particular, continue to dictate the direction of the market,” Kara Murphy, CIO of Kestra Holdings, said by phone.
“And we still have a little ways to go — we know that the Fed is expected to have a couple of very large hikes in the not-too- distant future. Whether the market recovers from here or falls more depends on whether these hikes that are already built into the market do their job.”
* “We believe market pricing of recession risk is more likely to increase rather than decrease from here, and still-expensive  valuations do not provide adequate compensation for the downside risks to activity and earnings,” Evan Brown and Luke Kawa at UBS Asset Management wrote in a report.
* “In the face of such high inflation, uncertainty in the global macro, fiscal cliff here in the US, I think it will be a stretch to really expect a soft landing,” Jimmy Chang, chief investment officer at Rockefeller Global Family Office, said on Bloomberg TV. “Unfortunately, the Fed put is kaput for now.”

Energy shares extended this year’s rally on Wednesday as oil gained after crude inventories in the largest storage hub and gasoline stockpiles dropped.
West Texas Intermediate futures rose more than 2% to more than $122 a barrel.

Key events to watch this week:
* European Central Bank rate decision, Christine Lagarde briefing, Thursday
* China trade, new yuan loans, money supply, aggregate financing. Thursday
* US CPI, University of Michigan consumer sentiment Friday
* China CPI, PPI Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.8%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro rose 0.1% to $1.0715
* The British pound fell 0.4% to $1.2540
* The Japanese yen fell 1.3% to 134.26 per dollar
Bonds
* The yield on 10-year Treasuries advanced six basis points to 3.03%
* Germany’s 10-year yield advanced six basis points to 1.35%
* Britain’s 10-year yield advanced three basis points to 2.25%
Commodities
* West Texas Intermediate crude rose 2.7% to $122.67 a barrel
* Gold futures rose 0.2% to $1,855.60 an ounce
–With assistance from Tugce Ozsoy, Kat Van Hoof, Isabelle Lee, Yiqin Shen, Stephen Stapczynski, Michael Msika, James Hirai, Sagarika Jaisinghani and Andreea Papuc.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

No amount of sophistication is going to allay the fact that all of your knowledge is about the past and all your decisions
are about the future. –Ian H. Wilson, 1923-2014.

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:
2000 A federal judge ordered the breakup of Microsoft Corp.  Go to article »
June 7, 2021: Auckland named world’s most livable city (due to success with COVID) and Damascus named the worst by The Economist Intelligence Unit.
1975: VCR introduced.

Paul Gauguin, artist, b. 1848.
Life being what it is, one dreams of revenge. -Paul Gauguin.

2,100-year-old burial of woman lying on bronze ‘mermaid bed’ unearthed in Greece.
Archaeologists have unearthed the ancient burial of a woman lying on a bronze bed near the city of Kozani in northern Greece. It dates to the first century B.C.
Depictions of mermaids decorate the posts of the bed. The bed also displays an image of a bird holding a snake in its mouth, a symbol of the ancient Greek god Apollo. The woman’s head was covered with gold laurel leaves that likely were part of a wreath, Areti Chondrogianni-Metoki, director of the Ephorate of Antiquities of Kozani, told Live Science in an email. The wooden portions of the bed have decomposed.  Full Story: Live Science (6/3)

Stars are born amid turbulent clouds, and their deaths can be just as explosive. But how long do stars actually live?  The short answer is: It depends on the size of the star.  Full Story: Live Science (6/6) 
 
Experimental rectal cancer drug caused all patients’ tumors to disappear in small trial.
In an unprecedented clinical trial, a dozen rectal cancer patients saw their tumors disappear after they received an experimental drug called dostarlimab, and none of the patients experienced significant side effects from the treatment.   “I believe this is the first time this has happened in the history of cancer,” in that this is the first cancer trial in which every patient entered remission, Dr. Luis Alberto Diaz, Jr., one of the trial leaders and a medical oncologist at Memorial Sloan Kettering (MSK) Cancer Center told The New York Times.  Full Story: Live Science (6/6) 

To kick off the summer season, Apple TV+ has dropped a dino-sized documentary miniseries that you don’t want to miss.  Here’s how to watch “Prehistoric Planet,” plus a complete overview of its contents and the talent behind the massive project.  Full Story: Live Science (6/6) 

PHOTOS O FTHE DAY

Marion Cotillard rehearses for Joan of Arc at the Stake at the Teatro Real
CREDIT:  Teatro Real/Javier del Real /EPA

Philippe Starck stands by Medallion chairs he designed for Dior at the city’s furniture fair
CREDIT: Miguel Medina/AFP/Getty Images

The peloton passes through during the second stage of the Women’s Tour of Britain
CREDIT:  Justin Setterfield/Getty Images

Market Closes for June 7^th, 2022

Market Index	Close	Change
Dow Jones	33180.14	+264.36
		+0.80%
S&P 500	4160.68	+39.25
		+0.95%
NASDAQ	12175.23	+113.86 +0.94%
TSX	20928.21	+109.12
		+0.52%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27943.95	+28.06
		+0.10%
HANG SENG	21531.67	-122.23
		-0.56%
SENSEX	55107.34	-567.98
		-1.02%
FTSE 100*	7598.93	-9.29 -0.12%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.186	3.193
CND. 30 Year Bond	3.103	3.100
U.S.    10 Year Bond	2.9736	3.0399
U.S. 30 Year Bond	3.1236	3.1959

Currencies

BOC Close	Today	Previous
Canadian $	0.7979	0.7949
US $	1.2533	1.2580
Euro Rate 1 Euro=		Inverse
Canadian $	1.3419	0.7452
US $	1.0707	0.9340

Commodities

Gold	Close	Previous
London Gold Fix	1847.20	1844.90
Oil
WTI Crude Future	119.41	118.50

Market Commentary:
On this day in 2000, U.S. District Court Judge Thomas Penfield Jackson finalized his ruling that Microsoft was a monopoly under the Sherman Antitrust Act, ordering that the “untrustworthy” company be split in two and placed under various restrictions
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian energy stocks advanced and lifted S&P/TSX  Composite Index Tuesday as crude futures topped $120 per barrel.
The composite rose for a second day, climbing 0.5%, or 109.12 to 20,928.21 in Toronto.
Shopify Inc. contributed the most to the index gain, increasing 5.3% after investors agreed to grant CEO Tobi Lutke special voting rights.
Energy Fuels had the largest increase, rising 12.7% as the US pushes ahead with a $4.3-billion plan to wean off Russian uranium supplies.
Today, 151 of 239 shares rose, while 82 fell; 7 of 11 sectors were higher, led by energy stocks.
Insights
* This quarter, the index fell 4.4%, heading for the biggest decline since the first quarter of 2020
* The index advanced 4.5% in the past 52 weeks. The MSCI AC Americas Index lost 3.3% 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 1% in the past 5 days and rose 1.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16 on a trailing basis and 12.9 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$3.33t
* 30-day price volatility fell to 19.96% compared with 20.45% in the previous session and the average of 19.94% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 75.1217| 1.9| 34/0
* Financials | 20.1808| 0.3| 23/5
* Information Technology | 14.0508| 1.3| 7/9
* Communication Services | 9.4366| 0.9| 5/2
* Real Estate | 1.1782| 0.2| 16/6
* Industrials | 0.7941| 0.0| 20/10
* Health Care | 0.5603| 0.7| 5/2
* Utilities | -1.1787| -0.1| 9/7
* Consumer Discretionary | -1.4914| -0.2| 7/7
* Consumer Staples | -2.5786| -0.3| 3/8
* Materials | -2.7755| -0.1| 22/27
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Shopify | 18.7900| 5.3| 10.4| -72.6
* Canadian Natural Resources | 15.7300| 2.3| 10.2| 60.9
* Cenovus Energy | 7.8010| 3.0| -6.6| 99.5
* Constellation Software | -2.9000| -1.1| -39.2| -18.5
* Canadian National | -8.2110| -1.3| -48.1| -6.0
* Nutrien | -14.9000| -3.4| 46.3| 17.9
US
By Stephen Kirkland and Peyton Forte
(Bloomberg) — US stocks rose for a second day, climbing to session highs in the last hour of trading amid a broad-based rally.
Treasuries pared gains and the dollar slipped.
Back-to-back gains in the S&P 500 clawed back all of last week’s losses.
The tech-heavy Nasdaq 100 advanced with mega caps Apple Inc. and Microsoft Corp. offsetting declines in ecommerce giant Amazon.com Inc.
Consumer discretionary stocks led declines throughout the day, with Target Corp. falling after the retailer cut its profit outlook for the second time in three weeks amid an inventory surplus.
Sentiment whipsawed for much of the day with traders hesitant to take on risk amid concern monetary tightening by Federal Reserve will stifle growth.
But that changed in late trading as buyers emerged across the equity market, with 10 of the 11 sectors in the S&P advancing and the Russell 2000 of small caps climbing more than 1.5%.
“It does seem that the odds of a soft landing are reasonably good but it’s tough to manage,” Anthony Crescenzi, market strategist and portfolio manager at Pacific Investment Management Co., said on Bloomberg TV. “Navigating it into that narrow runway is challenging. The price of oil rising of course, will reduce aggregate demand, perhaps. And that will likely help bring it into that zone. But lots of other things have to happen.”

Ahead of US consumer price data later this week, uncertainty about the outlook has led to a back and forth between stocks and bonds, which saw equities rally as 10-year yields held below 3%.
“The yield on the 10-year note fell back below 3%, so it seems like the stock market is very focused on the Treasury market this week,” said Matt Maley, chief market strategist for Miller Tabak + Co. “I’m not so sure that the 3% level is as important as the stock market does this week, but with no Fed speak this week and the CPI number not due out until Friday, we could see stocks whip around in both directions for a few days.”
The inflation reading for May due Friday may help traders discern the Fed’s rate path and whether it will continue to hike in 50-basis point increments.
Strong hiring data last week provided some justification for an aggressive approach.
Wall Street weighs in on the growth debate ;
* “Much of the mispricing we see is in the bond market right now — the 10-year Treasury yield just keeps going up, even though the economy’s slowing,” Matt Miskin, co-chief investment strategist at John Hancock Investment Management, said in an interview. “Eventually it’s going to be an anchor of slower growth that pulls down yields. And that’s actually where we’re seeing the best opportunity to kind of exploit.”
* Fed Chair Jerome “Powell faces a tough challenge bringing inflation under control,” wrote Evercore ISI’s Krishna Guha. “We will likely see this again this week with CPI data that shows another boost to headline inflation from energy prices while elevated shelter costs and a surge in travel-related services inflation significantly offset welcome moderation in goods inflation that is being slowed down by ongoing supply dislocations in Europe and China.”
* “We believe the Fed will manage to reduce inflation while avoiding a recession, but we continue to monitor the data to see if employment, credit conditions, production, sentiment and income remain consistent with a continued economic expansion,” Gargi Chaudhuri, head of iShares investment strategy for the Americas at BlackRock, wrote in a note.

Earlier, the Reserve Bank of Australia blindsided the market with an outsized hike to combat rising costs.
The RBA responded to price pressures with its biggest rate increase in 22 years — predicted by just three of 29 economists – and  indicated it remained committed to “doing what is necessary” to rein in inflationary pressures.
The European Central Bank on Thursday is set to end trillions of euros of asset purchases and cement a path to exiting eight years of negative interest rates.
Key events to watch this week:
* Reserve Bank of India rate decision Wednesday
* OECD Economic Outlook, a twice-yearly analysis of major global economic trends and prospects for the next two years. Wednesday
* European Central Bank rate decision, Christine Lagarde briefing, Thursday
* China trade, new yuan loans, money supply, aggregate financing. Thursday
* US CPI, University of Michigan consumer sentiment Friday
* China CPI, PPI Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.9% as of 4:01 p.m. New York time
* The Nasdaq 100 rose 0.9%
* The Dow Jones Industrial Average rose 0.8%
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.1% to $1.0709
* The British pound rose 0.5% to $1.2596
* The Japanese yen fell 0.6% to 132.63 per dollar
Bonds
* The yield on 10-year Treasuries declined six basis points to 2.98%
* Germany’s 10-year yield declined three basis points to 1.29%
* Britain’s 10-year yield declined three basis points to 2.21%
Commodities
* West Texas Intermediate crude rose 1.3% to $120.03 a barrel
* Gold futures rose 0.7% to $1,856 an ounce

–With assistance from Nisha Gopalan, Sagarika Jaisinghani, Andreea Papuc, Farah Elbahrawy, Denitsa Tsekova, Vildana Hajric, Isabelle Lee and Cormac Mullen.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

I’m quite illiterate, but I read a lot. -J.D. Salinger, 1919-2010, The Catcher in the Rye.

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: D-DAY, June 6, 1944.
1944: The United States and allied troops invade at Normandy.  This was the largest air, land and sea invasion in history.  The goal was to surprise Germany, but Germany was ready to fight.  It was the beginning of the end of World War II.  Go to article »

Queen Elizabeth II makes surprise appearance to cap off jubilee.  Thousands flocked to London from around the world to cheer on the 96-year-old monarch. Watch some highlights
from the spectacular celebration here!

Woman gets free couch from Craigslist. See what she found inside the cushions.  Was it luck? Or was it fate? This incredible discovery sounds like a movie plot.

She was her family’s breadwinner on a McDonald’s salary. Now she’s gone into space.  Meet the first Mexican-born woman to reach the edge of space. Historic!

Watch the biggest-ever comet outburst spray dust across the cosmos
The dust trail from the largest comet outburst ever seen will grace the skies this summer — and it’s going to look like a giant hourglass.
The night show will come courtesy of comet 17P/Holmes, which in October 2007 let off a huge flash of gas and dust, brightening by a factor of a million and briefly becoming the largest object in the solar system. In that brief period, its coma, the dust cloud surrounding the comet body, had a bigger diameter than the sun.  Full Story: Live Science (6/3) 

Oldest shoe in Norway, dating to 3,000 years ago, recovered from melting ice patch
The oldest shoe in Norway — a 3,000-year-old bootie from the Bronze Age — is just one of thousands of ancient artifacts that were recovered from the country’s melting mountain ice patches in the past two decades, according to a new report from the Norwegian University of Science and Technology (NTNU).
Unlike objects trapped in acidic soil or beneath gargantuan glaciers, the artifacts recovered from Norwegian ice patches are often found in impeccable condition, showing minimal decomposition and deformation, even after thousands of years of frozen slumber. That’s because ice patches are relatively stable, unmoving and free from corrosive compounds. Perfectly intact weapons, clothing, textiles, and plant and animal remains have all emerged from the ice, helping to bring thousands of years of Norwegian history to light.  Full Story: Live Science (6/3) 

Amino acids were found in an asteroid sample
PHOTOS OF THE DAY

Myles Hunt, the head gardener at the British Normandy Memorial, rakes the grass at sunrise in preparation for commemorations to mark the 78th anniversary of D-day
CREDIT: Kiran Ridley/Getty Images

Pilgrims dressed in Bavarian costumes take part in a traditional Catholic horse-riding procession
CREDIT: Andreas Gebert/Reuters

The Sydney Opera House is illuminated for Vivid Sydney, an annual festival of light, music and ideas
CREDIT: Brendon Thorne/Getty Images

Market Closes for June 6^th, 2022

Market Index	Close	Change
Dow Jones	32915.78	+16.08
		+0.05%
S&P 500	4121.43	+12.89
		+0.31%
NASDAQ	12061.37	+48.64 +0.40%
TSX	20819.09	+28.36
		+0.14%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27915.89	+154.32
		+0.56%
HANG SENG	21653.90	+571.77
		+2.71%
SENSEX	55675.32	-93.91
		-0.17%
FTSE 100*	7608.22	+75.27 +1.00%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.193	3.066
CND. 30 Year Bond	3.100	2.954
U.S.    10 Year Bond	3.0399	2.9387
U.S. 30 Year Bond	3.1959	3.0912

Currencies

BOC Close	Today	Previous
Canadian $	0.7949	0.7941
US $	1.2580	1.2593
Euro Rate 1 Euro=		Inverse
Canadian $	1.3453	0.7433
US $	1.0694	0.9351

Commodities

Gold	Close	Previous
London Gold Fix	1844.90	1844.90
Oil
WTI Crude Future	118.50	118.87

Market Commentary:
On this day in 1934, the Securities Exchange Act—which created the U.S. Securities & Exchange Commission and required companies to file registration documents with stock exchanges and to file quarterly financial statements with the SEC—was signed into law by President Franklin D. Roosevelt.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.1% at 20,819.09 in Toronto.
The move follows the previous session’s decrease of 1.1%.
Magna International Inc. contributed the most to the index gain, increasing 4.4%.
Peyto Exploration & Development Corp. had the largest increase, rising 8.3%.
Today, 122 of 239 shares rose, while 115 fell; 5 of 11 sectors were higher, led by financials stocks.
Insights
* This quarter, the index fell 4.9%, heading for the biggest decline since the first quarter of 2020
* The index advanced 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 4.2% in the same period
* The S&P/TSX Composite is 6.3% below its 52-week high on April 5, 2022 and 6.9% above its low on May 12, 2022
* The S&P/TSX Composite is down 0.5% in the past 5 days and rose 0.9% 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$3.33t
* 30-day price volatility fell to 20.45% compared with 20.58% in the previous session and the average of 19.75% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 22.8766| 0.3| 19/9
* Energy | 14.9939| 0.4| 22/12
* Information Technology | 13.0556| 1.2| 11/5
* Consumer Discretionary | 6.0533| 0.9| 9/5
* Industrials | 4.8108| 0.2| 22/8
* Utilities | -0.8761| -0.1| 6/10
* Health Care | -1.8325| -2.1| 2/6
* Communication Services | -2.6066| -0.3| 2/5
* Consumer Staples | -3.6459| -0.4| 5/6
* Real Estate | -6.5037| -1.2| 3/20
* Materials | -14.0414| -0.5| 21/29
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Magna International | 6.6850| 4.4| 28.5| -17.9
* Shopify | 5.8070| 1.7| -32.4| -74.0
* Bank of Montreal | 5.3160| 0.9| -35.8| 1.4
* Bank of Nova Scotia | -4.9680| -0.7| 89.8| -5.5
* Nutrien | -6.5190| -1.5| -12.6| 22.0
* Canadian Natural Resources | -9.3900| -1.4| 16.9| 57.2
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — The push and pull between bond yields and equities continued Monday, with stock gains kept in check by a drop in Treasuries that pushed a swath of rates above 3%.
The S&P 500 held onto a gain in a choppy session that saw the index climb as much as 1.5% before paring it back.
Blue chips in the Dow Jones Industrial Average were little changed.
Amazon.com Inc. rose after implementing a 20-for-1 stock split.
Twitter Inc. fell after Elon Musk said he believes the company is breaching their merger agreement by not providing information about spam and fake accounts he demanded.
Stocks rallied early in the session after Beijing’s latest move to ease Covid restrictions boosted speculation this would help abate supply-chain pressures.
Meanwhile, the selloff in Treasuries sent 10-year yields back above 3%, a level not seen since mid-May and a potential headwind for risk sentiment.
Equities have struggled to mount a sustainable rebound amid fears rising borrowing costs will hurt growth and corporate earnings.
“I am actually surprised the market was up as strongly as it was this morning,” said Joe Gilbert, portfolio manager for Integrity Asset Management. “It will be tough to rally, I believe, with the 10-year yield moving meaningfully above 3.00%.”
The pound held gains after UK Prime Minister Boris Johnson survived a leadership vote.
In a secret ballot on Monday evening, 211 Tory MPs voted for Johnson compared with 148 against.
Data last week showing stronger-than-forecast US hiring for May suggested the Federal Reserve won’t waver from its tightening path to rein in price pressures.
But Goldman Sachs Group Inc. economists said the Fed may be able to pull off its aggressive rate-hike plan without tipping the country into recession.
Chinese regulators are set to ease curbs on ride-hailing giant Didi Global Inc. and other US-listed tech firms, sending Didi’s shares up more than 20%.
Chinese internet stock JD.com Inc. led gains on the Nasdaq 100.
Bitcoin rose back above the $31,000 mark.
Market commentary:
* “This year’s decline has not priced-in much of the slowdown in economic growth that we’re going to get this year,” said Matt Maley, chief market strategist at Miller Tabak + Co. “The decline so far has only worked off the overvaluation that existed at the beginning of the year.”
* “Markets are naturally taking it all in and are navigating monetary policy and economic transition,” wrote John Stoltzfus, chief investment strategist at Oppenheimer. “Times like these we have found over the years require patience, prudent diversification and a sense of context. In spite of their troublesome nature in hindsight such downdrafts create opportunity for traders and investors.”
* “A strong consumer that keeps inflation too high for the Fed for too long is a significant risk,” wrote Dennis DeBusschere, the founder of 22V Research. “This week’s CPI report will help determine if price gains are slowing enough to give the Fed comfort or if more aggressive rate hikes/rhetoric will be needed to slow growth. Investors are much more focused on CPI than payroll or other data points.”
* “The upbeat mood was lifted further by signs of Beijing and Shanghai returning to everyday life,” Fiona Cincotta, senior financial markets analyst at City Index, said in a note. “Still, prices and a strong labor report have lifted bets that the Fed may need to act aggressively to rein in inflation. US CPI data and consumer confidence data, both due on Friday, will be the key focus of the market this week.”

The US jobs report Friday quelled some concern that the world’s biggest economy is slowing too sharply, but also strengthened the view that the Fed will keep hiking rates to combat inflation.
Investors bought equities last week, with US stocks seeing a fourth straight week of inflows as a bear market rally continues, according to Bank of America strategists, citing EPFR Global data.

Meanwhile, the European Central Bank is set to announce an end to bond purchases this week and formally begin the countdown to an increase in borrowing costs in July, joining global peers tightening monetary policy in the face of hot inflation.
The ECB is planning to strengthen its support of vulnerable euro-area debt markets if they are hit by a selloff, Financial Times reported.
Tech stocks and crypto are vulnerable in the era of quantitative tightening, our latest MLIV Pulse survey shows.
Key events to watch this week:
* Reserve Bank of Australia policy decision Tuesday
* World Bank’s “Global Economic Prospects” report Tuesday
* Reserve Bank of India rate decision Wednesday
* OECD Economic Outlook, a twice-yearly analysis of major global economic trends and prospects for the next two years. Wednesday
* European Central Bank rate decision, Christine Lagarde briefing, Thursday
* China trade, new yuan loans, money supply, aggregate financing. Thursday
* US CPI, University of Michigan consumer sentiment Friday
* China CPI, PPI Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.4%
* 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 0.2% to $1.0695
* The British pound rose 0.4% to $1.2536
* The Japanese yen fell 0.8% to 131.87 per dollar
Bonds
* The yield on 10-year Treasuries advanced 10 basis points to 3.04%
* Germany’s 10-year yield advanced five basis points to 1.32%
* Britain’s 10-year yield advanced nine basis points to 2.25%
Commodities
* West Texas Intermediate crude fell 0.5% to $118.31 a barrel
* Gold futures fell 0.3% to $1,844.70 an ounce
–With assistance from April Ma, Andreea Papuc, Nisha Gopalan, Robert Brand, Isabelle Lee and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Memories of our lives, of our works and our deeds will continue in others. -Rosa Parks, 1913-2005.

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.

Allen Ginsberg, writer b. 1926.
Curtis Mayfield, soul musician, b.1942.

On June 3, 1965, astronaut Edward White became the first American to “walk” in space, during the flight of Gemini 4.  Go to article »

An opossum wanders into a bar… and gets tossed out.  Watch what happens when wildlife meets nightlife. Yikes!

A rare, 5-planet alignment will take over the sky.  Calling all stargazers. Look up this weekend for a stellar sight in the night sky.
 
Christie’s to offer rare first edition ‘Harry Potter’ book in private sale.  The auction house is inviting offers starting from $250,000. Let me guess what you’re thinking… “Maybe I have copy hidden on a shelf somewhere.” 

PHOTOS OF THE DAY

A couple get married in Saint Michael’s Cathedral in Kyiv as the city hosts events to celebrate Kyiv Day on the last weekend of May. Following Russia’s retreat from areas around the Ukrainian capital, signs of normal life have returned to the city, with residents taking advantage of shortened curfew hours, businesses reopening, and foreign countries promising to return their diplomats.
CREDIT: Christopher Furlong/Getty Images

Ceremonial king, Jon Haddock, wears a large flower-covered framework while leading a procession on horseback during the Castleton Garland, an ancient tradition that takes place in the village of Castleton. The date of the custom coincides with Oak Apple Day and it is said to commemorate the restoration of King Charles II in 1660. It is thought that the garland represents the oak tree in which he hid after the Battle of Worcester.
CREDIT: Danny Lawson/PA

Afghan boys play cricket at a cemetery in Kabul. There are cemeteries all over Afghanistan’s capital, many of them filled with the dead from the country’s decades of war. They have been incorporated into Afghans’ lives providing open spaces where children play football or cricket or fly kites and where adults hang out as there are few public parks.
CREDIT: Ebrahim Noroozi/AP
Market Closes for June 3^rd, 2022

Market Index	Close	Change
Dow Jones	32899.70	-348.58
		-1.05%
S&P 500	4108.54	-68.28
		-1.63%
NASDAQ	12012.73	-304.17 -2.47%
TSX	20790.73	-241.07
		-1.15%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27761.57	+347.69
		+1.27%
HANG SENG	21082.13	-212.81
		-1.00%
SENSEX	55769.23	-48.88
		-0.09%
FTSE 100*	7532.95	-74.71 -0.98%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.066	3.000
CND. 30 Year Bond	2.954	2.908
U.S.    10 Year Bond	2.9387	2.9076
U.S. 30 Year Bond	3.0912	3.0747

Currencies

BOC Close	Today	Previous
Canadian $	0.7941	0.7955
US $	1.2593	1.2570
Euro Rate 1 Euro=		Inverse
Canadian $	1.3502	0.7406
US $	1.0722	0.9327

Commodities

Gold	Close	Previous
London Gold Fix	1844.90	1844.90
Oil
WTI Crude Future	118.87	116.87

Market Commentary:
On this day in 1880, Alexander Graham Bell transmitted the first message on his new “photophone,” which bounced sound off a mirror and used a beam of sunlight to project the mirror’s vibrations onto a photosensitive receiver. Thus began the era of wireless telecommunications. 
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.1% at 20,790.73vin Toronto.
The move was the biggest since falling 1.9% on May 18 and follows the previous session’s increase of 1.5%.
Shopify Inc. contributed the most to the index decline and had the largest move, decreasing 11.2%.
Today, 192 of 239 shares fell, while 44 rose; 10 of 11 sectors were lower, led by financials stocks.
Insights
* In the past year, the index had a similar or greater loss 16 times. The next day, it declined nine times for an average 0.6% and advanced seven times for an average 0.5%
* This quarter, the index fell 5%, heading for the biggest decline since the first quarter of 2020
* So far this week, the index was little changed
* The index advanced 4.3% in the past 52 weeks. The MSCI AC Americas Index lost 3.6% in the same period
* The S&P/TSX Composite is 6.4% below its 52-week high on April 5, 2022 and 6.7% 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 12.9 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$3.36t
* 30-day price volatility fell to 20.58% compared with 21.28% in the previous session and the average of 19.06% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -72.8353| -1.1| 1/27
* Information Technology | -58.4252| -5.1| 1/15
* Materials | -49.0023| -1.8| 5/46
* Industrials | -27.3646| -1.1| 4/26
* Consumer Discretionary | -16.4520| -2.4| 0/14
* Communication Services | -6.4784| -0.6| 1/6
* Real Estate | -5.2905| -0.9| 4/19
* Health Care | -3.3585| -3.7| 0/7
* Energy | -1.4722| 0.0| 16/17
* Utilities | -1.0010| -0.1| 8/8
* Consumer Staples | 0.5920| 0.1| 4/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -43.8900| -11.2| 6.2| -74.4
* TD Bank | -14.8000| -1.2| -23.2| -1.4
* Brookfield Asset Management | -13.1500| -2.0| -64.4| -17.2
* Loblaw | 2.1910| 1.7| -3.0| 13.5
* West Fraser Timber | 4.1020| 5.5| 98.6| -1.6
* Suncor Energy | 6.2450| 1.2| -13.5| 62.5
US
By Isabelle Lee and Elaine Chen
(Bloomberg) — US stocks resumed their trend of weekly losses after strong hiring data cleared the way for the Federal Reserve to remain aggressive in its fight against inflation.
Treasuries fell and the dollar strengthened against peers.
The S&P 500 slumped 1.6% afternoon trading, tipping the benchmark index into negative territory for the eighth week in the past nine periods.
Tesla Inc. also dragged tech shares lower Friday after reports the company plans to reduce its salaried workforce.
Meanwhile, energy shares advanced as crude reached $120 a barrel in New York.
Stocks turned sharply lower on Friday after May hiring data topped expectations, suggesting the labor market remains robust enough for the Fed to raise rates quickly as it battles runaway price gains.
The US central bank is expected to raise rates by 50 basis points at its next two meetings.
Market-derived odds for a third hike of that magnitude in September held steady near 85% after the jobs report.
Gold slipped.
“The second half of 2022 is going to be a roller coaster ride for investors unless the Fed is able to bring inflation under control without a hard landing,” said Peter Essele, head of portfolio management at Commonwealth Financial Network. “Most investors seem to be wagering on a crash-and-burn scenario at this point as recessionary fears abound, and equity markets fail to develop any sort of positive momentum.”
Investors remain beholden to economic data and how it will impact the pace of US monetary tightening, as worries mount that a restrictive Fed could throw the world’s largest economy into a recession.
The strong jobs report quelled some concern that growth was slowing too sharply, while at the same time cleared the path for the Fed to stay aggressive.
US May nonfarm payrolls rose 390,000 compared to estimates of 318,000, according to a Bloomberg survey of economists.
Meanwhile, the unemployment rate remained unchanged at 3.6% in the month, versus expectations of 3.5%. 
Here’s what else Wall Street is saying about US payrolls:
* “The labor market is tight and job growth is stable. The Federal Reserve can continue to tighten financial conditions and remove the historic level of accommodation in the markets.” -Jeffrey Roach, chief economist for LPL Financial
* “Another month of solid job growth in May is further evidence that the U.S. economy was not in a recession in the spring …Americans continue to return to the labor force as the rising cost of living pressures household finances.” – Bill Adams, chief economist for Comerica Bank
* “People were hoping for a number that would maybe dissuade the Fed from their stated plan for continual 50 basis point hikes and quantitative tightening, and they didn’t get it today,” Steve Sosnick, chief strategist at Interactive Brokers
* “What this number tells the Fed is: ‘go ahead and keep hiking rates like crazy, because you’re not creating unemployment, you can put pain into risk markets to hopefully cool demand.’ And that’s not what we want to see and I think it’s being reflected in the stock market today.” — Jim Bianco, founder of Bianco Research, on Bloomberg TV
* “We’re going to have this face off trying to figure out about the soft landing and the Fed that’s probably going to continue well into the fall … There’s just a lot of things that suggest volatility is likely to remain elevated.” – Scott Brown, technical market strategist at LPL Financial
* “Equity futures are initially reacting negatively to the report. We look for volatility to continue as investors struggle to find an appropriate multiple on record earnings. However, full employment in the U.S. is a solid buffer against the risk of slowing global growth.” – John Lynch, chief investment Officer for Comerica Wealth Management
* “Best part about the employment report is the uptick in participation … The bad part is that we still need millions more working to reduce the pervasive shortages driving inflation. It’s frustrating that the Fed is trying to damp down demand and restrict hiring when we need to see a string of strong jobs reports.” – Bryce Doty, senior vice president at Sit Investment Associates
* “The Fed decision is a done deal at this point, so this report is more about what it tells us about underlying demand and the economy’s ability to handle everything. It’s a good report that shows the general population is coming back into the labor force.” – Shawn Cruz, head trading strategist at TD Ameritrade

Oil rose, securing its sixth straight week of gains.
The yen held near the psychologically important 130 level against the greenback.
And Bitcoin fell back below $30,000..
Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.6% as of 4:02 p.m. New York time
* The Nasdaq 100 fell 2.7%
* The Dow Jones Industrial Average fell 1.1%
* The MSCI World index fell 1.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.2% to $1.0722
* The British pound fell 0.6% to $1.2498
* The Japanese yen fell 0.8% to 130.86 per dollar
Bonds
* The yield on 10-year Treasuries advanced three basis points to 2.94%
* Germany’s 10-year yield advanced four basis points to 1.27%
Commodities
* West Texas Intermediate crude rose 2.9% to $120.28 a barrel
* Gold futures fell 1% to $1,853.60 an ounce
–With assistance from Emily Graffeo, John Viljoen, Allegra Catelli and Albertina Torsoli.
Have  wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

It is a mistake to look too far ahead.  Only one link in the chain of destiny can be handled at a time. –Winston Churchill, 1874-1965.

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