Month: August 2022

Dear Friends,

Tangents:
On Aug. 31, 1997, Britain’s Princess Diana died in a car crash in Paris at age 36.  Go to article »
August 31, 2022: Kyrgyzstan declares independence from the Soviet Union and becomes an independent state.
1896: Gold discovered, Klondike.

‘This is so embarrassing’: Woman gets stuck upside down at the gym:  A woman used her smartwatch to call 911 after getting stuck in an interesting position at the gym. Watch the video here.
NASA releases stunning new image of the Phantom Galaxy:  In a galaxy far, far away — 32 million light-years from Earth — there is a remarkable spiral of solar systems. Take a look at the new image here.
How Princess Diana’s style legacy remains relevant.  Today marks 25 years since the death of Princess Diana, but her legacy and wardrobe continue to inspire new generations.

Goodbye, Mikhail Gorbachev.

PHOTOS OF THE DAY

At the annual Ride the Lights event thousands of cyclists travel along the six-mile promenade to preview the Lancashire seaside resort’s famous illuminations before the official switch-on this week
CREDIT: Christopher Thomond/The Guardian

Lightning strikes illuminate the stormy evening sky
CREDIT: Anadolu Agency/Getty Images

Pictures and flowers are left in memory of Diana, princess of Wales, around the Liberty Flame monument above the Alma Bridge tunnel where she died in a car accident on 31 August 1997
CREDIT: Sarah Meyssonnier/Reuters
Market Closes for August 31st, 2022

Market Index	Close	Change
Dow Jones	31510.43	-280.44
		-0.88%
S&P 500	3955.00	-31.16
		-0.78%
NASDAQ	11816.20	-66.94 -0.56%
TSX	19330.81	-182.09
		-0.93%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28091.53	-104.05
		-0.37%
HANG SENG	19954.39	+5.36
		+0.03%
SENSEX	59537.07	+1564.45
		+2.70%
FTSE 100*	7284.15	-77.48 -1.05%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.111	3.073
CND. 30 Year Bond	3.023	2.993
U.S.    10 Year Bond	3.1851	3.1025
U.S. 30 Year Bond	3.2918	3.2155

Currencies

BOC Close	Today	Previous
Canadian $	0.7618	0.7639
US $	1.3127	1.3090
Euro Rate 1 Euro=		Inverse
Canadian $	1.3204	0.7576
US $	1.0053	0.9948

Commodities

Gold	Close	Previous
London Gold Fix	1730.30	1751.25
Oil
WTI Crude Future	89.55	91.64

Market Commentary:
On this day in 1887, Thomas Edison received a U.S. patent for his new kinetoscope, the predecessor to the motion-picture camera.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities drop to their lowest level since late July, led by energy as oil posted a third monthly drop — the longest losing streak in more than two years.
The S&P/TSX Composite fell for the fourth day, dropping 0.9%, or 182.09 to 19,330.81 in Toronto.
The index dropped to the lowest closing level since July 27.
Enbridge Inc. contributed the most to the index decline, decreasing 3%.
Laurentian Bank of Canada had the largest drop, falling 10.3%.
Today, 164 of 238 shares fell, while 70 rose; 10 of 11 sectors were lower, led by financials stocks.
Insights
* This month, the index fell 1.8%
* The index declined 6.1% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 13% below its 52-week high on April 5 and 6.4% above its low on July 14
* The S&P/TSX Composite is down 3.4% 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 13 on a trailing basis and 11.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.12t
* 30-day price volatility rose to 13.17% compared with 12.85% in the previous session and the average of 14.25% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -65.4928| -1.1| 11/18
Energy | -59.3403| -1.6| 8/30
Materials | -26.5313| -1.2| 13/35
Communication Services | -10.1868| -1.0| 0/7
Utilities | -6.4308| -0.6| 5/11
Consumer Discretionary | -5.9681| -0.9| 5/8
Real Estate | -4.1735| -0.8| 2/21
Consumer Staples | -3.9115| -0.5| 3/8
Information Technology | -1.6692| -0.2| 8/6
Industrials | -1.3595| -0.1| 10/19
Health Care | 2.9788| 4.2| 5/1
US
By Vildana Hajric
(Bloomberg) — US stocks and bonds ended a turbulent August lower as traders recalibrated rate-hike expectations after central banks across the globe vowed to step up their fights against inflation.
All major US indexes had their worst month since June.
Treasuries in August faced their biggest monthly loss since April as the Federal Reserve resolved to stay hawkish.
Oil posted a third monthly drop — the longest losing streak in more  than two years — hampered by the likelihood of slower global growth.
Federal Reserve officials in recent days quashed hopes of a dovish pivot, a view that had helped fuel bets that this year’s bear market is over.
Since then, investors have been sifting through sometimes-conflicting economic data for further policy clues.
While job openings data on Tuesday underscored tightness in the labor market, revamped ADP data on Wednesday showed US companies increased headcount at a relatively sluggish pace in August.
All eyes will be on the job report on Friday for further hints about the central bank’s path.
“Now that the Jackson Hole dust is settling, markets have gained clarity on today’s investment question,” said Florian Ielpo, head of macro research at Lombard Odier Asset Management.
“Yesterday’s question was ‘will inflation level down’ when today’s is ‘how big will the needed slowdown be.’ For now, markets are pricing a marked slowdown, not a fully-fledged recession.”
The Fed has ditched its soft landing goal and is instead aiming for a “growth recession,” which would mean a protracted period of meager growth and rising unemployment.
Euro-area inflation accelerated to another all-time high, strengthening the case for the European Central Bank to consider a jumbo interest-rate hike when it meets next week.
ECB Governing Council member Joachim Nagel urged a “strong” reaction.
Money markets have now priced in 125 basis points of tightening from the ECB by October, which implies a half-point hike and a three-quarter point increase spread over its next two policy decisions.
Investors are also contending with mounting friction between Beijing and Taipei after Taiwanese soldiers fired shots to ward off civilian drones and evaluating the latest Chinese data, which indicated factory activity shrank for a second month.
Power shortages, a property sector crisis and Covid outbreaks all took a toll.
Here are some key events to watch this week:
* ECB Governing Council members due to speak at event Tuesday through Sept. 2
* China Caixin manufacturing PMI, Thursday
* US nonfarm payrolls, Friday
* UK leadership ballot closes Friday. Winner announced Sept. 5

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.6%
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.3% to $1.0049
* The British pound fell 0.3% to $1.1616
* The Japanese yen was little changed at 138.91 per dollar
Bonds
* The yield on 10-year Treasuries advanced six basis points to 3.16%
* Germany’s 10-year yield advanced three basis points to 1.54%
* Britain’s 10-year yield advanced 10 basis points to 2.80%
Commodities
* West Texas Intermediate crude fell 2.8% to $89.09 a barrel
* Gold futures fell 0.9% to $1,721.40 an ounce
–With assistance from Andreea Papuc, Felice Maranz, Isabelle Lee and Elizabeth Stanton.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

Practice is the best of all instructors. –Publilius Syrus, 85-43 BCE.

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

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

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

Dear Friends,

Tangents: Happy 92^nd Birthday Warren Buffett!
August 30, 2017: The late author Terry Pratchett’s unfinished novels were destroyed by a steamroller, as it was his last dying wish.

Cryptic 4,000-year-old writing system may finally be deciphered:  A mysterious ancient writing system called Linear Elamite, used between about 2300 B.C. and 1800 B.C. in what is now southern Iran, might have finally been deciphered, although some experts are skeptical about the findings.  What’s more, it’s unclear whether all the artifacts used to decipher the writings were legally acquired.  Full Story: Live Science (8/30) 

Oldest human-made structure in the Americas is older than the Egyptian pyramids:  To find the oldest known human-made structures in the Americas, you don’t need to hike into the wilderness or paddle down a raging river — all you need to do is visit Baton Rouge, Louisiana.  At the north end of Louisiana State University’s (LSU) campus sit two grassy mounds, rising in a gentle slope to a height of about 20 feet (6 meters). The mounds are just two of more than 800 similar human-made mounds in Louisiana, built by Indigenous Americans. Although researchers knew they were old, a new study has determined just how old these ancient structures are.  Full Story: Live Science (8/26) 

Serena Williams advances at US Open.  Williams is playing in what is likely the final tennis tournament of her storied career. She will play doubles with her sister Venus on Wednesday.
 
Madam C.J. Walker, America’s first female self-made millionaire, is now a Barbie doll.  Toy maker Mattel is hoping to inspire children to break boundaries and educate them
about Walker’s trailblazing career.

DeLorean is back with its first prototype in 40 years.  But it doesn’t look much like the famous DeLorean DMC-12 from the “Back to the Future” movies. 
PHOTOS OF THE DAY

A man stands in front of a hole where water flows out of the Mont Miné glacier
CREDIT: Denis Balibouse/Reuters

A Kyrgyz berkutchi (eagle hunter) holds his golden eagle during the Salburun hunting festival. Archers from around the world take part in the festival of traditional hunting from central Asia
CREDIT: Vyacheslav Oseledko/AFP/Getty Images

Serena Williams takes centre stage as the US Open gets under way with the 23-time grand slam winner preparing for an emotional farewell to tennis. Williams delayed her retirement by winning her first-round match
CREDIT:
Photograph: Timothy A Clary/AFP/Getty Images

Market Closes for August 30^th, 2022

Market Index	Close	Change
Dow Jones	31790.87	-308.12
		-0.96%
S&P 500	3986.16	-44.45
		-1.10%
NASDAQ	11883.14	-134.53 -1.12%
TSX	19512.90	-323.22
		-1.63%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28195.58	+316.62
		+1.14%
HANG SENG	19949.03	-74.19
		-0.37%
SENSEX	59537.07	+1564.45
		+2.70%
FTSE 100*	7361.63	-65.68 -0.88%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.073	3.086
CND. 30 Year Bond	2.993	3.018
U.S.    10 Year Bond	3.1025	3.1024
U.S. 30 Year Bond	3.2155	3.2399

Currencies

BOC Close	Today	Previous
Canadian $	0.7639	0.7686
US $	1.3090	1.3011
Euro Rate 1 Euro=		Inverse
Canadian $	1.3115	0.7625
US $	1.0019	0.9981

Commodities

Gold	Close	Previous
London Gold Fix	1751.25	1751.25
Oil
WTI Crude Future	91.64	97.01

Market Commentary:
On this day in 1930, with the Dow Jones Industrial Average at 240.42, Warren Edward Buffett was born in Omaha, Neb., to stockbroker Howard Buffett and homemaker Leila Stahl Buffett.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities tumbled in their biggest one-day drop in more than two months as slumping oil and copper prices dragged down energy and materials stocks.
The S&P/TSX Composite fell for the third day, dropping 1.6%, or 323.22, to 19,512.90 in Toronto.
The move was the biggest since the 3.1% drop on June 16.
Today, all sectors were in the red, with energy stocks leading the slide by index points; 194 of 238 shares fell, while 43 rose.
Canadian Pacific Railway Ltd. contributed the most to the index decline, decreasing 3.5%.
Precision Drilling Corp. had the largest drop, falling 7.7%.
Insights
* In the past year, the index had a similar or greater loss 11 times. The next day, it declined eight times for an average 0.6% and advanced three times for an average 0.3%
* This month, the index fell 0.9%
* The index declined 5.3% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 12.2% below its 52-week high on April 5, 2022 and 7.4% above its low on July 14, 2022
* The S&P/TSX Composite is down 2.4% in the past 5 days and fell 0.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.2 on a trailing basis and 12.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.17t
* 30-day price volatility rose to 12.85% compared with 12.67% in the previous session and the average of 14.31% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -109.3585| -2.9| 4/34
* Financials | -72.7083| -1.2| 6/23
* Materials | -64.5227| -2.9| 5/46
* Industrials | -44.5912| -1.8| 6/23
* Utilities | -10.4631| -1.0| 1/15
* Communication Services| -7.6725| -0.8| 1/6
* Information Technology| -5.7035| -0.6| 4/10
* Real Estate | -4.4211| -0.8| 3/20
* Health Care | -1.6627| -2.3| 1/6
* Consumer Staples | -1.1078| -0.1| 7/4
* Consumer Discretionary| -1.0061| -0.1| 5/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Canadian Pacific | -22.7500| -3.5| 79.6| 8.3
* Nutrien | -21.2700| -4.4| 25.1| 29.6
* Canadian Natural Resources | -21.2400| -3.5| -58.8| 38.9
* TFI International | 0.5270| 0.7| -36.4| -7.1
* Constellation Software | 0.6670| 0.2| -14.6| -13.1
* Cameco | 2.6900| 2.6| 105.0| 41.0
US
By Vildana Hajric and Isabelle Lee
(Bloomberg) — US stocks fell for the third consecutive day as fresh data pointed to resilience in household and labor demand, affirming the Federal Reserve’s resolve to continue to be aggressive in its fight against inflation.
Commodities from oil to copper sank as the dollar rose.
The S&P 500 and the tech-heavy Nasdaq 100 closed at their lowest levels in a month.
Treasuries ended Tuesday mixed after an unexpected rebound in August consumer confidence pushed swap rates toward pricing in another three-quarter percentage point hike for the Fed’s September meeting.
Three regional Fed presidents, in separate remarks on Tuesday, reiterated Chair Jerome Powell’s intention to bring down inflation.
A reading on job openings Tuesday added to signs that the labor market remains tight and wage pressures persist.
Jobless claims will air Thursday before Friday’s August payrolls report.
“The repercussions from Friday are going to make us extra sensitive to a lot of the incoming data, especially around employment,” said Shawn Cruz, head trading strategist at TD Ameritrade.
“It’s not surprising that getting that consumer sentiment data today and the JOLTS data had a pretty strong reaction in markets. That’s probably what you should expect from now until the September Fed meeting, in particular anything around employment.”
Analysts remain mixed on what recent remarks by Fed officials and upcoming data could mean for stocks.
While Credit Suisse Group AG recommended investors go underweight global equities following the Jackson Hole symposium, JPMorgan Chase & Co. strategists say that a reading on the US labor market that spells bad news for the economy is actually a bullish signal for stocks.
Meanwhile, bonds are sliding toward the first bear market in a generation, burning investors who erred in bets that central banks would pivot away from rapid interest-rate hikes.
The Fed this week is also set to step up the unwinding of its near-$9 trillion balance sheet.
The impact of quantitative tightening is going to be relatively benign for the first six to 12 months, but could start to amplify its effects on the economy around the middle part of next year, Jeff Schulze, investment strategist at ClearBridge Investments, said in an interview.
Other risks range from China’s economic slowdown to an energy crisis that threatens to tip Europe into recession with winter approaching.
Here are some key events to watch this week:
* ECB Governing Council members due to speak at event Tuesday through Sept. 2
* China PMI, Wednesday
* Euro-area CPI, Wednesday
* Russia’s Gazprom set to halt Nord Stream pipeline gas flows for three days of maintenance, Wednesday
* Cleveland Fed President Loretta Mester due to speak, Wednesday
* China Caixin manufacturing PMI, Thursday
* US nonfarm payrolls, Friday
* UK leadership ballot closes Friday. Winner announced Sept. 5

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 1.1%
* The Dow Jones Industrial Average fell 1%
* The MSCI World index fell 1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro rose 0.2% to $1.0019
* The British pound fell 0.5% to $1.1656
* The Japanese yen was little changed at 138.73 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 3.10%
* Germany’s 10-year yield was little changed at 1.51%
* Britain’s 10-year yield advanced 10 basis points to 2.70%
Commodities
* West Texas Intermediate crude fell 5.1% to $92.02 a barrel
* Gold futures fell 0.8% to $1,735.70 an ounce
–With assistance from Abigail Moses and Elizabeth Stanton.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

The secret of being boring is to say everything. –Voltaire, 1694-1778.

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 Monday.
On Aug. 29, 1991, the Supreme Soviet, the parliament of the U.S.S.R., suspended all activities of the Communist Party, bringing an end to the institution.  Go to article »
2005: Hurricane Katrina makes 2^nd & 3^rd landfall as a category 3 hurricane, devastating much of the US Gulf Coast from Louisiana to Florida Panhandle.  Kills more than 1,836, causes over $115 billion in damage.

And while your calendar may say we are still three weeks away from the arrival of fall, September 1 is the first day of meteorological fall in the Northern Hemisphere. Click here to learn why.
MTV VMAs 2022: See the full list of winners: Some of the world’s most popular artists were recognized at the MTV Video Music Awards on Sunday. Here are the stars who took home shiny new trophies.

Here’s how you can calmly handle common household headaches: Unexpected plumbing leaks and appliance breakdowns can be extremely stressful. But don’t worry, CNN made a list of solutions to frequent household problems so you can feel better prepared when these issues arise.

Father and daughter go viral with Harry Styles concert outfits:  If there’s a “Father of the Year” award, this man deserves to be a contender. Watch this heartwarming video of a dad who dressed up to match his young daughter at a Harry Styles concert. 

Nazi warships revealed as Danube River levels drop: Falling water levels in the Danube River during a recent heat wave across Europe have revealed more wrecks from a Nazi German flotilla of warships that were deliberately sunk there in the last months of World War II.  The wrecks of about 20 warships are now exposed near the town of Prahovo in eastern Serbia, which is one of the 10 countries the Danube flows through between western Germany and the Black Sea, according to the news agency Reuters. Full Story: Live Science (8/29) 

Could Earth ever leave our solar system? In Liu Cixin’s short story “The Wandering Earth” (first published in Chinese magazine Science Fiction World in July 2000), Cixin portrays a scenario in which the planet’s leaders agree to propel Earth out of the solar system to escape an imminent solar flare that is expected to decimate all of the terrestrial planets.  This story is, of course, based in the realm of fiction, but could Earth ever really leave the solar system?
Full Story: Live Science (8/28) 

PHOTOS OF THE DAY

Icelandic horses graze at a stud farm as the sun rises.
CREDIT: Michael Probst/AP

Footballers from Bourton Rovers create a splash as they fight for the ball during the annual Football in the River match.
CREDIT: Ben Birchall/PA

Female workers sort through millions of red chilli peppers, which create a sea of red covering acres of land. They slowly move forward with their baskets to separate the bad from the good after the chillies have been dried in the sun for a week
CREDIT: Mustasinur Rahman Alvi/Rex/Shutterstock

Market Closes for August 29^th, 2022

Market Index	Close	Change
Dow Jones	32098.99	-184.1
		-0.57%
S&P 500	4030.61	-27.05
		-0.67%
NASDAQ	12017.67	-124.04 -1.02%
TSX	198362	-37.17
		-0.19%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27878.96	-762.42
		-2.66%
HANG SENG	520023.22	-146.82
		-0.73%
SENSEX	57972.62	-861.25
		-1.46%
FTSE 100*	7427.31	-52.43 -0.70%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.086	3.017
CND. 30 Year Bond	3.018	2.976
U.S.    10 Year Bond	3.1024	3.1920
U.S. 30 Year Bond	3.2399	3.0409

Currencies

BOC Close	Today	Previous
Canadian $	0.7686	0.7662
US $	1.3011	1.3052
Euro Rate 1 Euro=		Inverse
Canadian $	1.3009	0.7687
US $	0.9998	1.0002

Commodities

Gold	Close	Previous
London Gold Fix	1751.25	1753.55
Oil
WTI Crude Future	97.01	93.06

Market Commentary:
On this day in 2000, in a sign of just how bullish the global bull market had become, OM Group of Sweden launched the world’s first hostile takeover bid for a stock exchange as it offers 822 million pounds sterling ($1.2 billion) to buy the London Stock Exchange
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities fell and the S&P/TSX Composite slid 0.2% to its lowest closing level since Aug. 9 as the materials and industrials sectors led a broad selloff.
Canadian Pacific Railway Ltd. contributed the most to the index decline, decreasing 1.5%.
Tfi International Inc. had the largest percentage drop, falling 6.5%.
Today, 149 of 238 shares fell, while 88 rose; 7 of 11 sectors were lower.
Terminal users can read more in our markets live blog.
Insights
* This month, the index rose 0.7%
* The index declined 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 12% in the same period
* The S&P/TSX Composite is 10.7% below its 52-week high on April 5, 2022 and 9.2% above its low on July 14, 2022
* The S&P/TSX Composite is down 0.7% in the past 5 days and rose 0.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.4 on a trailing basis and 12.3 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$3.18t
* 30-day price volatility fell to 12.67% compared with 12.86% in the previous session and the average of 14.51% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -30.7422| -0.5| 7/22
* Materials | -30.3874| -1.3| 2/48
* Industrials | -20.1218| -0.8| 10/19
* Information Technology | -6.8350| -0.7| 2/12
* Consumer Staples | -4.9996| -0.6| 3/8
* Communication Services | -2.1182| -0.2| 1/6
* Real Estate | -1.7726| -0.3| 9/14
* Health Care | 0.4860| 0.7| 6/1
* Consumer Discretionary | 0.5928| 0.1| 5/8
* Utilities | 0.8314| 0.1| 10/6
* Energy | 57.8974| 1.6| 33/5
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian Pacific | -9.6760| -1.5| -2.0| 12.2
* TD Bank | -9.2750| -0.9| -16.9| -11.2
* Nutrien | -7.9780| -1.6| 3.6| 35.4
* Cenovus Energy | 6.0780| 2.8| -28.8| 66.7
* Cameco | 8.6750| 9.1| 92.4| 37.4
* Canadian Natural Resources | 9.8630| 1.7| -25.9| 44.1
US
By Isabelle Lee
(Bloomberg) — US stocks and Treasuries ended Monday lower as traders recalibrated their expectations in response to the Federal Reserve indicating that it will continue to raise interest rates to tamp down on inflation.
The S&P 500 and the Nasdaq 100 finished lower for the second straight session.
Treasury yields rose, with the 10-year rate hovering around 3.11%.
The two-year yield had climbed to its highest level since 2007 earlier in the day before paring the advance. Oil notched gains on supply risks.
Fed Chair Jerome Powell’s speech during the Jackson Hole symposium had made it clear that a dovish pivot that some investors had been positioning for was unlikely.
He had also warned of the potential for economic pain for households and businesses as the central bank continues to be aggressive to battle inflation.
“The Fed Friday took away the punch bowl from the party and equities were the drunkest asset class at the party,” Jeff Schulze, investment strategist at ClearBridge Investments, said in an interview.
“We’re going to deal with the hangover as a consequence. So I think investors are reassessing recession risks and are recognizing that the Fed is prioritizing price stability over economic stability.”
Minneapolis Fed President Neel Kashkari said the recent stock-market losses show that investors have understood that Powell and his colleagues are serious about tackling inflation.
Read More: Kashkari ‘Happy’ to See Market Rout in Wake of Jackson Hole August and September also tend to be the worst months for the S&P 500 Index, with the index averaging declines of 0.6% and 0.7%, respectively, over the past 25 years.
“Since World War II, the S&P 500 posted the worst average monthly price change in September, joining February as the only two months to register declines,” Sam Stovall, chief investment strategist at CFRA wrote in a note.
“Yet, September stands alone as the only month in which the market fell more frequently than it rose.
What’s more, the best September return places it in the bottom quarter of all months, while its deepest one-month decline was among the four worst.”
Going forward, weaker earnings — not higher interest rates — could pose the largest threat to US stock prices, Morgan Stanley strategists led by Michael J. Wilson said in a research note Monday.
The bank’s leading earnings model, which projects a steep fall in earnings per share growth over the next several months, confirms that view.
“The path for stocks from here will be determined by earnings, where we still see material downside,” the strategists said.
“As a result, equity investors should be laser focused on this risk, not the Fed.”
Seema Shah, chief global strategist at Principal Global Investors, echoed the sentiment.
“While earnings season has been positive, persistent challenges indicate an increasingly difficult operating environment, likely limiting profit persistence in the second half of the year,” she wrote.
Here are some key events to watch this week:
* US consumer confidence, Tuesday
* New York Fed President John Williams due to speak, Tuesday
* ECB Governing Council members due to speak at event Tuesday through Sept. 2
* China PMI, Wednesday
* Euro-area CPI, Wednesday
* Russia’s Gazprom set to halt Nord Stream pipeline gas flows for three days of maintenance, Wednesday
* Cleveland Fed President Loretta Mester due to speak, Wednesday
* China Caixin manufacturing PMI, Thursday
* US nonfarm payrolls, Friday
* UK leadership ballot closes Friday. Winner announced Sept. 5

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4 p.m. New York time
* The Nasdaq 100 fell 1%
* The Dow Jones Industrial Average fell 0.6%
* The MSCI World index fell 2.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro rose 0.3% to $0.9995
* The British pound fell 0.3% to $1.1703
* The Japanese yen fell 0.8% to 138.70 per dollar
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 3.11%
* Germany’s 10-year yield advanced 11 basis points to 1.50%
Commodities
* West Texas Intermediate crude rose 4.2% to $96.97 a barrel
* Gold futures were little changed

–With assistance from Vildana Hajric, Abigail Moses, Farah
Elbahrawy and Robert Brand.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

And we danced , on the brink of an unknown future, to an echo from a vanished past. – John Wyndham, 1903-1969.

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.
August 26, 1957: The Soviet Union announced that it had successfully tested an intercontinental ballistic missile. Go to article »
1883: Krakatoa erupts: 36,000 killed.

Christopher Columbus, explorer, b. 1451.

Lab-made mouse embryos grew brains and beating hearts, just like the real thing: Scientists coaxed mouse stem cells to grow into synthetic embryos that began developing hearts and brains, just like the real thing.
The lab-made embryos, crafted without any eggs or sperm and incubated in a device that resembles a fast-spinning Ferris wheel full of tiny glass vials, survived for 8.5 days. That’s nearly half the length of a typical mouse pregnancy. In that time, a yolk sac developed around the embryos to supply nutrition, and the embryos themselves developed digestive tracts; neural tubes, or the beginnings of the central nervous system; beating hearts; and brains with well-defined subsections, including the forebrain and midbrain, the scientists reported in a study published Thursday (Aug. 25) in the journal Nature.  Full Story: Live Science (8/25) 

Coleen Rooney signs multimillion-pound deal with Disney+ for a documentary about the Wagatha Christie trial. (h/t Andrea Felsted)

Pour your plants a martini: Researchers say giving alcohol to plants may protect them from dying in a drought. Here’s why plants benefit from a little liquid encourage-mint.

The majesty of weather photography: A weather photography competition has revealed striking images of extreme climate events. See the stunning photos here.
 
Looking back on 50 years of the Hard Rock Café: Since the first Hard Rock Cafe opened its doors in 1971, branches have popped up everywhere from Tokyo to Egypt.

Rivers, canals and reservoirs are running dry.

Paul Allen’s estate puts $1 billion in art up for auction.

The rise of tiny Men’s timepieces.

PHOTOS OF THE DAY

A kayaker paddles past the wreckage of a second world war German battleship in the Danube River near Prahovo. The hulks of dozens of German warships have been exposed on the river near the town of Prahovo after severe drought hit much of Europe.
CREDIT: Darko Vojinović/AP

David Lawless and his son Toby work with shire horses Cosmo and Boy to harvest the wildflower meadow at King’s College. The heavy horses from Waldburg Shires stable are helping to cut the meadow before turning and carting the hay on a traditional wain.
CREDIT: Joe Giddens/PA

A person flies a kite on Parliament Hill during a kite festival celebrating Afghan culture, held in solidarity with the people of Afghanistan on the first anniversary of the country falling under Taliban rule.
CREDIT: Henry Nicholls/Reuters
Market Closes for August 26^th, 2022

Market Index	Close	Change
Dow Jones	32283.40	-1008.38
		-3.03%
S&P 500	4057.66	-141.46
		-3.37%
NASDAQ	12141.71	-497.56 -3.94%
TSX	19873.29	-299.05
		-1.48%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28641.38	+162.37
		+0.57%
HANG SENG	20170.04	+201.66
		+1.01%
SENSEX	58833.87	+59.15
		+0.10%
FTSE 100*	7427.31	-52.43 -0.70%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.017	3.008
CND. 30 Year Bond	2.976	2.998
U.S.    10 Year Bond	3.1920	3.0258
U.S. 30 Year Bond	3.0409	3.2407

Currencies

BOC Close	Today	Previous
Canadian $	0.7662	0.7733
US $	1.3052	1.2931
Euro Rate 1 Euro=		Inverse
Canadian $	1.3000	0.7692
US $	0.9960	1.0040

Commodities

Gold	Close	Previous
London Gold Fix	1753.55	1745.65
Oil
WTI Crude Future	93.06	93.02

Market Commentary:
On this day in 1919, the Coca-Cola Co. successfully sold shares to outsiders for the first time, as a syndicate of banks and brokers from around the country bought 417,000 shares to resell to retail investors at an initial offering price of $40. An earlier attempt at a stock offering in 1892 had failed.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.5% at 19,873.29 in Toronto.
The move was the biggest loss since July 14 and follows the previous session’s increase of 0.8%.
Today, financials stocks led the market lower, as all sectors lost; 227 of 238 shares fell, while 11 rose.
Brookfield Asset Management Inc. contributed the most to the index decline, decreasing 3.7%. Open Text Corp. had the largest drop, falling 13.7%.
Terminal users can read more in our markets live blog.
Insights
* In the past year, the index had a similar or greater loss 15 times. The next day, it declined nine times for an average 0.7% and advanced six times for an average 0.6%
* This month, the index rose 0.9%
* So far this week, the index fell 1.2%, heading for the biggest decline since the week ended July 15
* The index declined 3.1% in the past 52 weeks. The MSCI AC Americas Index lost 11% in the same period
* The S&P/TSX Composite is 10.5% below its 52-week high on April 5, 2022 and 9.4% above its low on July 14, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.4 on a trailing basis and 12.3 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$3.22t
* 30-day price volatility rose to 12.86% compared with 11.64% in the previous session and the average of 15.09% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -60.8512| -1.0| 1/28
* Materials | -57.9369| -2.5| 1/50
* Information Technology | -48.9665| -4.5| 0/14
* Industrials | -42.0225| -1.6| 1/28
* Energy | -29.7529| -0.8| 4/34
* Consumer Discretionary | -17.4270| -2.5| 0/13
* Consumer Staples | -14.2168| -1.7| 0/11
* Real Estate | -10.9875| -2.0| 1/22
* Communication Services | -8.0219| -0.8| 0/7
* Utilities | -4.9825| -0.5| 3/13
* Health Care | -3.8674| -5.1| 0/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Brookfield Asset Management | -24.7600| -3.7| 30.1| -16.1
* Shopify | -16.9200| -4.8| 8.7| -75.8
* Open Text | -12.3000| -13.7| 411.1| -30.8
* Advantage Energy Ltd | 0.5000| 3.3| 25.2| 61.0
* Brookfield Infrastructure | 1.0100| 0.6| 8.5| 9.4
* TD Bank | 10.1500| 0.9| 78.3| -10.4
US
By Rita Nazareth
(Bloomberg) — Stocks tumbled as Jerome Powell gave a clear message that rates will likely stay high for some time, throwing cold water on the idea of a Federal Reserve pivot that could jeopardize its war against inflation.
The rout deepened in afternoon New York trading, with the S&P 500 seeing its worst day since mid-June and the Nasdaq 100 tumbling over 4%.
Major equity indexes dipped below their 100-day price averages, indicating the potential for more losses, according to some traders.
Treasury two-year yields — which are more sensitive to imminent policy moves — rose alongside the dollar.
Hawkish Fedspeak grew louder in the last few weeks as financial conditions eased after a stock rally that began with short covering, restored $7 trillion to values — and ironically was linked to dovish expectations. Another reason cited by traders for Friday’s plunge was the concern that restrictive policy will raise the odds of a recession next year.
To Cliff Hodge at Cornerstone Wealth, the Fed is going to remain aggressive at the expense of growth and traders should expect more volatility and tougher conditions for equities.
“Powell can’t come right out and say that the Fed is fine walking us right into recession in order to crush inflation, but that is what this messaging unequivocally implies,” said Hodge.
“What does this mean for markets? Drastically reduces the chance of a soft landing and the bull case for new highs this year.”
The Fed Chief reiterated that another “unusually large” hike could be appropriate next month, though he stopped short of committing to one, adding that the decision will depend on incoming data.
Several officials have emphasized the central bank is in no way done, with Kansas City Fed Chief Esther George noting that the destination of the federal funds rate may be higher than markets are currently priced for.
Futures contracts referencing the Fed’s September policy meeting showed roughly even odds of a half-point or three- quarter-point hike.
The amount of additional tightening priced in for this year increased slightly, with traders seeing lower chances of rate cuts in 2023.
“Powell wants financial conditions to tighten further and wanted the market to know that the Fed is not ready to declare victory over inflation yet,” said Joe Gilbert, portfolio manager at Integrity Asset Management.
“He also renounced any prospects of interest rate cuts soon. The market is repricing this prospect.”
Former US Treasury Secretary Lawrence Summers handed out some rare praise for the Fed saying Powell’s latest pledge to restrain inflation was a “statement of being resolute.”
He said the policy maker “did what he needed to do” and that it was clear the Fed’s “overwhelming priority” is pulling back inflation from the fastest pace in four decades.
Investors are rushing out of stocks and bonds alike as they worry about the economic risks from the Fed pressing on with rate hikes, Bank of America Corp. strategists said in a note before Powell’s speech.
Global equity funds had outflows of $5.1 billion in the week through Aug. 24, with US stocks seeing their first redemptions in three weeks, according to a report from the bank, citing EPFR Global data.
Rate-sensitive technology funds posted their largest exodus since November 2021, while high-yield bonds led redemptions of $800 million from global bond funds.
About $600 million left gold.
Data Friday showed consumer spending rose less than expected as a key inflation metric turned negative.
Meantime, consumer sentiment beat estimates, suggesting Americans are growing more optimistic as gas prices continue to drop.
Some of the main moves in markets:

Stocks
* The S&P 500 fell 3.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 4.1%
* The Dow Jones Industrial Average fell 3%
* The MSCI World index fell 2.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.1% to $0.9965
* The British pound fell 0.8% to $1.1738
* The Japanese yen fell 0.7% to 137.42 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 3.03%
* Germany’s 10-year yield advanced seven basis points to 1.39%
* Britain’s 10-year yield declined one basis point to 2.60%
Commodities
* West Texas Intermediate crude rose 0.4% to $92.85 a barrel
* Gold futures fell 1.2% to $1,749.60 an ounce
–With assistance from Sunil Jagtiani, Robert Brand and Peyton
Forte.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

Nothing can resist a will which will stake even existence upon fulfillment. –Benjamin Disraeli, 1804-1881.

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.
On Aug. 25, 1944, Paris was liberated by Allied forces after four years of Nazi occupation.  Go to article »
August 25, 1958: Momofuku Ando markets the first package of precooked instant noodles (Chikin Ramen).
1939: The Wizard of Oz is released.

Leornard Bernstein composer, b.1918
Sean Connery, actor, b. 1930.
Elvis Costello, musician, b. 1954
Claudia Schiffer, model, b. 1970

Party City is hiring 20,000 people, expecting an epic Halloween.  Get your costumes early. Halloween celebrations are anticipated to return with pre-pandemic fervor.

Inside Flightradar24, the website that tracks every plane in the sky.  This website was founded “completely by accident.” Now, it tracks the real-time movements of more than 200,000 planes every day.

Watch this baby elephant play with bubbles.  This 10-month-old elephant at the Fort Worth Zoo is 1,090 pounds of cuteness. Watch the video here.

7 million years ago, our earliest relatives took their first steps on 2 feet:  The oldest known human-like species likely walked on two legs as far back as 7 million years ago, a new study finds, and the discovery sheds light on what first set humans apart from our ape relatives.  Researchers analyzed a thigh bone (femur) and a pair of forearm bones (ulnae) from Sahelanthropus tchadensis, which may be the oldest known hominin — a relative of humans dating from after our ancestors split from those of modern apes — according to the Smithsonian National Museum of Natural History. First unearthed in Chad in north central Africa in 2001, the remains are about 7 million years old.
Full Story: Live Science (8/25) 

Broken fortress discovered under ‘mega-monument’ burial mound in Cyprus:  Archaeologists excavating an enormous ancient burial mound in Cyprus have uncovered an even older structure hidden beneath it: a rampart, or part of a defensive wall, according to a statement from the Department of Antiquities Cyprus.  The large mound, known as the tumulus of Laona, is longer than a football field, or 328 feet long by 196 feet wide (100 by 60 meters) and was likely built around the third century B.C., when the successors of Alexander the Great were fighting for control of Cyprus and large swaths of the empire.  Full Story: Live Science (8/24) 

Could a solar storm ever destroy Earth?  All life on Earth owes its existence to the sun’s radiant heat. But what happens when that radiation surges out of control, and billions of tons of charged solar material suddenly barrel our way at thousands of miles a second? What happens when Earth takes a direct hit from a solar flare — and could a strong enough one ever destroy life on our planet as we know it?   The answers are complicated, but most scientists agree on one thing: Earth’s magnetic field and insulating atmosphere keep us extremely well protected from even the most powerful solar outbursts. While solar storms can tamper with radar and radio systems or knock satellites offline, the most harmful radiation is sopped up in the sky long before it touches human skin.  Full Story: Live Science (8/25) 

It took two photographers nine months to take this spectacular photo of the moon.

PHOTOS OF THE DAY

Tourists enjoy a boat ride in a Metasequoia forest in Luyang Lake wetland park in Jiangsu
CREDIT: VCG/Getty

Fishing boats return to port for shelter before the arrival of tropical storm Ma-on in southern China’s Guangdong province. The storm has already displaced thousands in the Philippines
CREDIT: Deng Hua/AP

A turtle crawls into the sea as employees of the oceans and fisheries ministry release six sea turtles, a species in danger of global extinction, on Saekdal beach in Seogwipo, Jeju island. The sea turtles included three born through artificial incubation and two rescued after they were found injured
CREDIT: Yonhap/EPA

Market Closes for August 25^th, 2022

Market Index	Close	Change
Dow Jones	33291.78	+322.55
		+0.98%
S&P 500	4199.12	+58.35
		+1.41%
NASDAQ	12639.27	+207.74 +1.67%
TSX	20172.34	+150.96
		+0.75%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28479.01	+165.54
		+0.58%
HANG SENG	19968.38	+699.64
		+3.63%
SENSEX	58774.72	-310.71
		-0.53%
FTSE 100*	7479.74	+8.23 +0.11%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.008	3.100
CND. 30 Year Bond	2.998	3.073
U.S.    10 Year Bond	3.0258	3.1039
U.S. 30 Year Bond	3.2407	3.3123

Currencies

BOC Close	Today	Previous
Canadian $	0.7733	0.7711
US $	1.2931	1.2969
Euro Rate 1 Euro=		Inverse
Canadian $	1.2897	0.7754
US $	0.9975	1.0025

Commodities

Gold	Close	Previous
London Gold Fix	1745.65	1746.55
Oil
WTI Crude Future	93.02	95.64

Market Commentary:
On this day in 1872, Justin Ford Kimball was born near Huntsville, Tex. In 1929, as an administrator at Baylor University’s hospital, he noted that Baylor was treating many Dallas teachers who couldn’t pay their hospitalization costs. So he created a plan enabling teachers to prepay 50 cents a month for up to 21 days of treatment at Baylor. By the end of 1929, as the Great Depression set in, three-fourths of all teachers in Dallas had signed up, and Kimball’s Blue Cross health insurance soon went nationwide.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian stocks jumped the most in two weeks as markets rallied ahead of US Federal Reserve chair Jerome Powell’s keynote at the Jackson Hole conference.
The S&P/TSX Composite rose for the third day, climbing 0.8%, or 150.96 to 20,172.34 in Toronto.
The move was the biggest since rising 0.9% on Aug. 12. Royal Bank of Canada contributed the most to the index gain, increasing 2.1%.
Tilray Brands Inc. had the largest increase, rising 8.8%.
Today, 167 of 238 shares rose, while 65 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index rose 2.4%
* So far this week, the index rose 0.3%
* The index declined 2% in the past 52 weeks. The MSCI AC Americas Index lost 8.4% in the same period
* The S&P/TSX Composite is 9.2% below its 52-week high on April 5, 2022 and 11% above its low on July 14, 2022
* The S&P/TSX Composite is down 0.5% in the past 5 days and rose 5.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.6 on a trailing basis and 12.5 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$3.2t
* 30-day price volatility fell to 11.64% compared with 12.84% in the previous session and the average of 15.35% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 53.4213| 0.9| 20/9
* Materials | 26.1394| 1.1| 31/15
* Industrials | 22.0079| 0.9| 27/2
* Information Technology | 15.6139| 1.5| 11/3
* Energy | 12.5035| 0.3| 16/21
* Communication Services | 6.3299| 0.6| 7/0
* Real Estate | 5.6938| 1.1| 21/2
* Consumer Discretionary | 5.0485| 0.7| 9/4
* Health Care | 3.8818| 5.3| 7/0
* Consumer Staples | 1.5050| 0.2| 8/3
* Utilities | -1.1763| -0.1| 10/6
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Royal Bank of | | | |
* Canada | 24.9900| 2.1| -7.4| -6.3
* Nutrien | 14.4000| 3.0| 20.1| 38.2
* Canadian Natural | | | |
* Resources | 10.0200| 1.7| 11.9| 42.6
* Element Fleet | -0.9640| -2.1| -34.3| 27.3
* Agnico Eagle Mines | -1.2560| -0.7| -1.7| -12.4
US
By Rita Nazareth
(Bloomberg) — Stocks rallied and bond yields fell, with traders awaiting Jerome Powell’s keynote for clues on how much further the Federal Reserve will pump the brakes on the economy to bring inflation back under control.
The S&P 500 closed near session highs, trimming a selloff that knocked down the market earlier in the week.
Following the slowest trading day of 2022 for US equities, volume was once again below average.
Megacaps like Apple Inc. and Amazon.com Inc. jumped, though Tesla Inc. whipsawed as its stock split took effect.
Treasury 10-year rates traded near 3%, while the dollar slipped.
Investors were mostly unfazed by hawkish comments from Fed officials gathering for the annual conference in Jackson Hole, Wyoming.
Powell’s speech at 10 a.m. Washington time Friday will mark the highlight of an event that’s been used for making key announcements.
The Fed’s boss is widely expected to restate his resolve to keep tightening policy to fight inflationary spirals.
“We are not convinced Jackson Hole tomorrow will be a negative market shock because expectations are hawkish while exposure still low,” said Dennis DeBusschere, founder of 22V Research.
“We thought the market correction would be leading into Jackson Hole, and that has largely played out. We are neutral short term.”
Traders will also be watching out for any signals about the pace of the Fed’s balance-sheet runoff — known as quantitative tightening — which gets up to full speed in September at a monthly clip of up to $95 billion.
While some strategists are convinced the unwinding could pose a threat to equities, others say there’s still plenty of liquidity left from stimulus measures to prop up the market.
In fact, stocks surged 18% during QT from October 2017 through July 2019, Ed Yardeni, president of Yardeni Research, wrote in a recent note.
Meantime, a survey conducted by DeBusschere’s firm showed that over half of the respondents believe QT will push Treasury yields higher, 32% say they will be unchanged and only 12% bet on a drop.
The Fed “should not blink” as it addresses hot inflation, and Powell faces a “huge” challenge finding ways to cool price growth without damaging the economy, Mohamed El-Erian, chief economic adviser at Allianz SE, told Bloomberg Television.
“We are confident that Powell’s commentary will be void of any major-market moving surprises,” said Robert Schein, chief investment officer at Blanke Schein Wealth Management.
Should Friday’s PCE inflation reading top forecasts, “that will firmly quash any expectations of a policy pivot,” he added.
Investors also waded through data showing the government’s main measures of US growth pointed in different directions in the first half of 2022, adding to the ongoing debate on the health of the economy.
Another report showed applications for unemployment benefits fell for a second week, suggesting employers are holding on to workers despite growing uncertainties.
In corporate news, China stocks listed in the US rallied as talks between both countries to avoid delisting of firms on the New York Stock Exchange ramp up. Snowflake Inc. surged as an upbeat forecast reassured Wall Street that companies are still investing in their technology systems to boost efficiency.
Peloton Interactive Inc. tumbled as a bleak outlook renewed concerns about the fitness company’s comeback plan.

What to watch this week:
* Fed Chair Powell speaks at Jackson Hole, Friday
* US personal income, PCE deflator, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.7%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 1.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.1% to $0.9977
* The British pound rose 0.3% to $1.1835
* The Japanese yen rose 0.4% to 136.52 per dollar
Bonds
* The yield on 10-year Treasuries declined eight basis points to 3.02%
* Germany’s 10-year yield declined five basis points to 1.32%
* Britain’s 10-year yield declined eight basis points to 2.62%
Commodities
* West Texas Intermediate crude fell 1.8% to $93.16 a barrel
* Gold futures rose 0.5% to $1,770.50 an ounce
–With assistance from Andreea Papuc, Robert Brand, Abigail
Moses, Vildana Hajric, Isabelle Lee and Emily Graffeo.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

But what is happiness except the simple harmony between a man and the life he leads. -Albert Camus, 1913-1960.

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: Schäferlauf, Shepherd’s Race, Germany.
August 24^th, 2022: Amid health issues, Steve Jobs resigns as CEO of Apple.  He died less than two months later at the age of 56.  Go to article »
“I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.” –Steve Jobs.

79 AD: Mt. Vesuvius erupts; Pompeii destroyed.
Jorge Lous Borges, writer, b.1899.
Today marks a year since the death of Charlie Watts, drummer for the Rolling Stones.

Tesla owner has his car key implanted in his hand:  This man got tired of losing his keys… so he turned himself into a key. What do you think — clever or crazy? Watch the video here.

9 habits linked to a longer, happier life:  Living life to the fullest starts with paying attention to your body and mind. Here are some helpful habits you may want to include in your daily routine.

‘Knives Out’ sequel gets a release date.  The follow-up to the 2019 hit film will once again star Daniel Craig as private detective Benoit Blanc. 

Harvard might lose its status as the wealthiest school.

PHOTOS OF THE DAY

Hot air balloons prepare to launch in a historical national park east of Nevşehir
CREDIT: Omar Haj Kadour/AFP/Getty Images

A fisher secures his boat, which got caught in bad weather
CREDIT: Chaideer Mahyuddin/AFP/Getty Images

A docker carrying a Unite union flag foil surfs in front of the container ship Ever Alot during a strike at Britain’s biggest container port.
CREDIT: Joe Giddens/PA

Market Closes for August 24^th, 2022

Market Index	Close	Change
Dow Jones	32969.23	+59.64
		+0.18%
S&P 500	4140.77	+12.04
		+0.29%
NASDAQ	12431.53	+50.23 +0.41%
TSX	20021.38	+36.03
		+0.18%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28313.47	-139.28
		-0.49%
HANG SENG	19268.74	-234.51
		-1.20%
SENSEX	59085.43	+54.13
		+0.09%
FTSE 100*	7471.51	-16.60 -0.22%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.100	3.046
CND. 30 Year Bond	3.073	3.022
U.S.    10 Year Bond	3.1039	3.0517
U.S. 30 Year Bond	3.3123	3.2576

Currencies

BOC Close	Today	Previous
Canadian $	0.7711	0.7718
US $	1.2969	1.2957
Euro Rate 1 Euro=		Inverse
Canadian $	1.2927	0.7736
US $	0.9968	1.0033

Commodities

Gold	Close	Previous
London Gold Fix	1746.55	1733.25
Oil
WTI Crude Future	95.64	94.39

Market Commentary:
On this day in 1927, Harry M. Markowitz was born in Chicago, son of Morris and Mildred Markowitz, who ran a small grocery store. In 1950-1952, Markowitz devised the intricate mathematics that proved the virtue of diversification and laid the groundwork for modern portfolio theory. In 1990, he shared the Nobel Prize in economics for his work
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.2%, or 36.03 to 20,021.38 in Toronto.
Cameco Corp. contributed the most to the index gain, increasing 14.9%. Turquoise Hill Resources Ltd. had the largest increase, rising 24.0%.
Today, 163 of 238 shares rose, while 74 fell; 8 of 11 sectors were higher, led by energy stocks.
Terminal users can read more in our markets live blog.
Insights
* This month, the index rose 1.7%
* The index declined 2.6% in the past 52 weeks. The MSCI AC Americas Index lost 9.5% in the same period
* The S&P/TSX Composite is 9.9% below its 52-week high on April 5, 2022 and 10.2% above its low on July 14, 2022
* The S&P/TSX Composite is down 0.8% in the past 5 days and rose 5.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.5 on a trailing basis and 12.4 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$3.19t
* 30-day price volatility fell to 12.84% compared with 12.97% in the previous session and the average of 15.51% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 51.2462| 1.4| 34/4
* Materials | 34.2480| 1.5| 41/9
* Industrials | 11.9514| 0.5| 19/10
* Consumer Discretionary | 6.5244| 0.9| 9/4
* Information Technology | 6.1904| 0.6| 8/6
* Utilities | 3.9794| 0.4| 11/5
* Health Care | 2.6926| 3.8| 7/0
* Real Estate | 2.1052| 0.4| 18/5
* Communication Services | -3.4027| -0.3| 2/5
* Consumer Staples | -11.9315| -1.4| 3/8
* Financials | -67.5923| -1.1| 11/18
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Cameco | 12.4900| 14.9| 148.3| 27.0
* Nutrien | 11.0200| 2.3| -5.0| 34.2
* Shopify | 8.8130| 2.7| -20.2| -75.2
* Bank of Montreal | -9.6240| -1.6| 4.1| -5.2
* Bank of Nova Scotia| -12.9500| -2.0| 20.8| -16.3
* Royal Bank of Canada | -32.1200| -2.6| 22.0| -8.2
US
By Rita Nazareth
(Bloomberg) — Stock traders remained hesitant to make any huge wagers ahead of Jerome Powell’s speech on Friday, which may provide clues on how hawkish the Federal Reserve will be in the face of mounting economic challenges.
After wandering aimlessly earlier Wednesday, the S&P 500 notched a small gain. For a second day in a row, its swing was capped within 1%. Such a stretch of intraday calm occurred only
three other times in 2022.
Tesla Inc., which is getting ready to trade on a split-adjusted basis Aug. 25, pared most of its rally.
Treasury 10-year yields remained above 3% on bets the Fed will continue to lean toward tighter policy.
In the run-up to the all-important Jackson Hole annual conference that will be attended by Powell and policy makers from around the world, traders had to digest more hawkish talk.
Fed Bank of Minneapolis President Neel Kashkari said late Tuesday it’s “very clear” that officials need to tighten and bring inflation back under control.
“We don’t expect any shock-and-awe, Volcker-style, hyper-aggressive articulation by Powell or anyone else for that matter,” said Troy Gayeski, chief market strategist at FS Investments, referring to former Fed Chair Paul Volcker, who tipped the economy into recession to conquer inflation in the1980s.
“However, it’s very clear that the rally since the June bottom works directly against what the Fed has been trying to achieve, which is tighter financial conditions to slow economic
growth and slow inflation.”
Economic reports have been mixed at best, underlining the delicate task policy makers face in bringing down high inflation without sparking a recession.
Data Wednesday showed US pending home sales fell to the lowest since the start of the pandemic.
While orders placed with US factories for core capital goods beat forecasts, the picture might change in the coming months amid higher borrowing costs and uncertainty about the growth
outlook.
Central banks that hike borrowing costs too aggressively to tame supply-driven inflation risk exacerbating price gains, according to Nobel laureate economist Joseph Stiglitz.
Meantime, Guggenheim Partners Chief Investment Officer Scott Minerd is warning investors away from junk bonds and stocks because slowing economic growth and higher interest rates likely will produce deeper losses in risk markets.
In late trading, Salesforce Inc. sank on a disappointing revenue forecast, while Snowflake Inc. jumped on an upbeat outlook. 
What to watch this week:
* US GDP, initial jobless claims, Thursday
* Kansas City Fed hosts its annual economic policy symposium in Jackson Hole, Wyoming, Thursday
* ECB’s July minutes, Thursday
* Fed Chair Powell speaks at Jackson Hole, Friday
* US personal income, PCE deflator, University of Michigan consumer sentiment, 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 0.3%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was unchanged at $0.9970
* The British pound fell 0.3% to $1.1799
* The Japanese yen fell 0.2% to 137.10 per dollar
Bonds
* The yield on 10-year Treasuries advanced six basis points to
3.11%
* Germany’s 10-year yield advanced five basis points to 1.37%
* Britain’s 10-year yield advanced 12 basis points to 2.70%
Commodities
* West Texas Intermediate crude rose 1.6% to $95.28 a barrel
* Gold futures rose 0.2% to $1,765.20 an ounce

–With assistance from Andreea Papuc, Robert Brand, Vildana Hajric and Lu Wang.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

A pause, giving time for thought, was the truly courteous way of beginning and conducting a conversation. –Chief Luther Standing Bear, 1868-1939.

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:
August 23, 1991: The World Wide Web, commonly known as the Web, an information system enabling documents and other web resources to be accessed over the Internet is opened to the public for the first time.

August 23, 2011: Judges in New York put an end to the sensational sexual assault case against Dominique Strauss-Kahn, setting him free after prosecutors questioned the credibility of the hotel housekeeper who’d accused the French diplomat. Go to article »

Welcome to Miniatur Wunderland.  Check out this interesting place where you’ll find tiny replicas of some of the world’s most popular destinations: Venice, Machu Picchu and Las Vegas, to name just a few. 

Chinese censors change ending of latest ‘Minions’ movie.  The ending of the recent animated film “Minions: The Rise of Gru” looks a little different in China. Here’s why. 

Europe’s drought is probably the continent’s worst in 500 years. 

4 billion-year-old chunk of Earth’s crust found below Australia: A 4-billion-year-old piece of Earth’s crust the size of Ireland is lurking beneath Western Australia, new research finds.  This piece of crust is among the oldest on Earth, though not the oldest. That honor goes to rocks of the Canadian Shield on the eastern shore of the Hudson Bay, which have been dated to 4.3 billion years old. (The Earth is 4.54 billion years old.) Because Earth’s crust is constantly being churned up and pushed back into the mantle by plate tectonics, most of the planet’s rocky surface was formed within the last couple billion years. Full Story: Live Science (8/22) 

Weird quantum experiment shows protons have more ‘charm’ than we thought: Protons may have more “charm” than we thought, new research suggests.

A proton is one of the subatomic particles that make up the nucleus of an atom. As small as protons are, they are composed of even tinier elementary particles known as quarks, which come in a variety of “flavors,” or types: up, down, strange, charm, bottom and top. Typically, a proton is thought to be made of two up quarks and one down quark. But a new study finds it’s more complicated than that.  Full Story: Live Science (8/19) 
PHOTOS OF THE DAY

Landmarks fall dark as the city switches off decorative lights in areas including the Bund, North Bund and the Lujiazui financial area across the Huangpu river for two days in response to a nationwide heatwave that has sent power demands soaring
CREDIT: China News Service/Getty Images

David Lawless and his son Toby work with shirehorses Cosmo and Boy to harvest the wildflower meadow at King’s College. The heavy horses from Waldburg Shires stable are helping to cut the meadow before turning and carting the hay on a traditional wain, with the bales used to propagate more wildflower meadows across the city, and the hay offered to local farmers as winter feed for livestock
CREDIT: Joe Giddens/PA

A wild boar and a Ceylon spotted deer roam in a meadow in the Yala national park
CREDIT: AFP/Getty Images

Market Closes for August 23^rd, 2022

Market Index	Close	Change
Dow Jones	32909.59	-154.02
		-0.47%
S&P 500	4128.73	-9.26
		-0.22%
NASDAQ	12381.30	-0.27 –%
TSX	19985.35	+10.43
		+0.05%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28452.75	-341.75
		-1.19%
HANG SENG	19503.25	-153.73
		-0.78%
SENSEX	59031.30	+257.43
		+0.44%
FTSE 100*	7488.11	-45.68 -0.61%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.046	3.009
CND. 30 Year Bond	3.022	3.001
U.S.    10 Year Bond	3.0517	3.0238
U.S. 30 Year Bond	3.2576	3.2305

Currencies

BOC Close	Today	Previous
Canadian $	0.7718	0.7660
US $	1.2957	1.3054
Euro Rate 1 Euro=		Inverse
Canadian $	1.2919	0.7741
US $	0.9970	1.0030

Commodities

Gold	Close	Previous
London Gold Fix	1733.25	1750.75
Oil
WTI Crude Future	94.39	90.23

Market Commentary:
On this day in 1890, the Bovespa (Bolsa de Valores de Sao Paulo, or Sao Paulo Stock Exchange), Brazil’s central securities market, was founded.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities rose slightly as materials and energy stocks pulled the index higher, even as most sectors
fell. The S&P/TSX Composite edged up to 19,985.35 in Toronto.
The move follows the previous session’s decrease of 0.7%.
Nutrien Ltd. contributed the most to the index gain, increasing 4.4%.
Hudbay Minerals Inc. had the largest increase, rising 9.4%.
Today, 137 of 238 shares rose, while 99 fell; 3 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index rose 1.5%
* The index declined 2.4% in the past 52 weeks. The MSCI AC Americas Index lost 9.5% in the same period
* The S&P/TSX Composite is 10% below its 52-week high on April 5, 2022 and 10% above its low on July 14, 2022
* The S&P/TSX Composite is down 1.4% in the past 5 days and rose 5.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.5 on a trailing basis and 12.4 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$3.19t
* 30-day price volatility fell to 12.97% compared with 13.28% in the previous session and the average of 15.64% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 78.0044| 2.2| 37/1
* Materials | 53.2761| 2.4| 47/3
* Consumer Discretionary | 0.9333| 0.1| 7/6
* Health Care | -0.9346| -1.3| 2/5
* Utilities | -2.9946| -0.3| 5/10
* Real Estate | -6.0705| -1.1| 0/23
* Communication Services | -6.3729| -0.6| 1/6
* Consumer Staples | -7.2572| -0.9| 2/9
* Information Technology | -14.8060| -1.4| 8/6
* Industrials | -17.8794| -0.7| 15/14
* Financials | -65.4670| -1.0| 13/16
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Nutrien | 19.7500| 4.4| 23.0| 31.2
* Suncor Energy | 15.3900| 3.7| 84.0| 40.4
* Canadian Natural Resources | 10.6600| 1.9| 29.7| 38.8
* Shopify | -9.3640| -2.8| -28.3| -75.9
* Royal Bank of Canada | -11.1300| -0.9| -20.2| -5.8
* Bank of Nova Scotia| -35.1900| -5.3| 87.5| -14.5
US
By Robert Brand
(Bloomberg) — Stocks retreated after weak economic data, with traders awaiting more clarity on the Federal Reserve’s monetary policy path from the Jackson Hole central bankers’ symposium later this week.
The S&P 500 saw its third straight day of losses in a session of below-average trading volume.
Treasury 10-year yields topped 3%, while the dollar halted a four-day rally.
Traders are bracing for hawkish talk at the Jackson Hole event after recent comments from Fed officials convinced many investors the central bank will continue to tighten aggressively, even into a slowing economy.
Data Tuesday showed sales of new US homes fell for the sixth time this year to the slowest pace since early 2016, while business activity  contracted for a second straight month, reflecting softer demand at both manufacturers and service providers.
“For the moment, global sentiment is both skittish and volatile,” said Richard Hunter, head of markets at Interactive Investor. “There is little cause for optimism on the immediate horizon, with any glimmers of economic hope yet to take hold on a sustainable basis.”
Directors at two of the Fed’s 12 regional branches — St. Louis and Minneapolis — favored a 100 basis-point increase in the discount rate in July, signaling internal pressure for a bigger move than policy makers delivered last month.
Citigroup Inc.’s Beata Manthey said the recent rally in stocks has gone too far given the prospect of sticky inflation and the need for further interest-rate rises to tame it.
While the strategist said she’s still bullish on equities over the longer term, she added that markets don’t go up in a straight line.
Quantitative tightening by the US central bank is set to kick into gear next month, presenting another potential headwind for equities.
“The near-term outlook for equity markets remains challenging,” said Mathieu Racheter, head of equity  strategy at Julius Baer. “The impact of quantitative tightening on financial markets have yet to be felt, while the earnings downgrade cycle has just started.”
In corporate news, Zoom Video Communications Inc. plummeted after its results showed that the transition from an essential Covid-era tool to an enterprise business platform is going to take longer than expected.
Macy’s Inc. climbed after cutting its full-year forecasts for profit and revenue in what Citigroup called a “prudent” move.
Elsewhere, US natural gas prices tumbled after the operators of a key export terminal damaged in an explosion earlier this year announced a delay to the timeline for restart.
West Texas Intermediate settled above $93 a barrel after getting an extra boost as the dollar weakened, making commodities priced in the currency more attractive.
What to watch this week:
* US durable goods, MBA mortgage applications, pending home sales, Wednesday
* US GDP, initial jobless claims, Thursday
* Kansas City Fed hosts its annual economic policy symposium in Jackson Hole, Wyoming, Thursday
* ECB’s July minutes, Thursday
* Fed Chair Powell speaks at Jackson Hole, Friday
* US personal income, PCE deflator, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average fell 0.5%
* The MSCI World index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.3% to $0.9969
* The British pound rose 0.5% to $1.1829
* The Japanese yen rose 0.5% to 136.81 per dollar
Bonds
* The yield on 10-year Treasuries advanced five basis points to 3.06%
* Germany’s 10-year yield advanced one basis point to 1.32%
* Britain’s 10-year yield advanced six basis points to 2.58%
Commodities
* West Texas Intermediate crude rose 3.7% to $93.66 a barrel
* Gold futures rose 0.7% to $1,760 an ounce
–With assistance from Andreea Papuc.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

It ain’t over till it’s over. -Lawrence Peter Berra “Yogi”, 1925-2015.

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 1485, British monarch Richard III was butchered at the Battle of Bosworth Field.

August 22, 1986: Kerr-McGee Corp. agreed to pay the estate of Karen Silkwood $1.38 million, settling a 10-year-old nuclear contamination lawsuit. Go to article »

Bill and Melinda Gates confirm on this day  in 1999 their intention to reorganize and expand philanthropic activities as the Bill & Melinda Gates Foundation, superseding two other Gates foundations. The new foundation by the Microsoft co-founder and his wife is the nation’s second largest, with an initial endowment of up to $17 billion. Within six months,  it becomes the richest with an additional $5 billion gift. The couple later divorces, but the foundation continues. (Compiled from HistoryLink.org).

HBO’s new ‘Game of Thrones’ spinoff is here.  The prequel series “House of the Dragon” made a roaring debut with dragons aplenty. Here’s what you need to know if you’re tuning in. 

Chipotle hilariously responds to people who steal drinks in water cups.  If you’ve asked for a water cup at Chipotle and then “accidentally” filled it with lemonade, they’re on to you.

12 of the best places to visit this coming fall.  Ah, fall foliage is almost here. If you’re thinking about traveling this autumn, consider visiting one of these beautiful destinations.

Nevada mega sculpture revealed after 50 years of work.

Why everything on Netflix looks the same.

PHOTOS OF THE DAY

Women walk through the cave of Saint George during the Ashenda festival, celebrated in the Tigray and Amhara regions
CREDIT: Amanuel Sileshi/AFP/Getty Images

The night sky is illuminated at the 18th international fireworks festival. Italy won first prize and Germany came second
CREDIT: Anadolu Agency/Getty Images

A tiger at the Wildlife Friends Foundation Thailand. The conservation and animal rescue centre has spearheaded the country’s largest rescue of tigers by taking in and then rehoming 11, as well as two bears from Phuket zoo, which were left behind after its closure. The zoo was forced to shut down due to financial pressures caused by Covid lockdowns
CREDIT: Narong Sangnak/EPA

Market Closes for August 22^nd, 2022

Market Index	Close	Change
Dow Jones	33063.61	-643.13
		-1.91%
S&P 500	4137.99	-90.49
		-2.14%
NASDAQ	12381.57	-323.64 -2.55%
TSX	19974.92	-136.46
		-0.68%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28794.50	-135.83
		-0.47%
HANG SENG	19656.98	-116.05
		-0.59%
SENSEX	58773.87	-872.28
		-1.46%
FTSE 100*	7533.79	-16.58 -0.22%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.009	2.941
CND. 30 Year Bond	3.001	2.940
U.S.    10 Year Bond	3.0238	2.9721
U.S. 30 Year Bond	3.2305	3.2129

Currencies

BOC Close	Today	Previous
Canadian $	0.7660	0.7696
US $	1.3054	1.2993
Euro Rate 1 Euro=		Inverse
Canadian $	1.2978	0.7705
US $	0.9941	1.0058

Commodities

Gold	Close	Previous
London Gold Fix	1750.75	1765.55
Oil
WTI Crude Future	90.23	90.77

Market Commentary:
On this day in 1940, President Franklin D. Roosevelt signed into law the Investment Company Act of 1940. It limited the amount of money a mutual fund could borrow, restricted its ability to invest in securities underwritten by its brokers and reduced the potential for conflicts of interest
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.7%, or 136.46 to 19,974.92 in Toronto.
The index dropped to the lowest closing level since Aug. 10.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 1.9%.
Canopy Growth Corp. had the largest drop, falling 13.7%.
Today, 171 of 238 shares fell, while 63 rose; 8 of 11 sectors were lower, led by financials stocks.
Insights
* This month, the index rose 1.4%
* The index declined 1.8% in the past 52 weeks. The MSCI AC Americas Index lost 8.5% in the same period
* The S&P/TSX Composite is 10.1% below its 52-week high on April 5, 2022 and 9.9% above its low on July 14, 2022
* The S&P/TSX Composite is down 1% in the past 5 days and rose 5.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.5 on a trailing basis and 12.4 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$3.22t
* 30-day price volatility fell to 13.28% compared with 13.58% in the previous session and the average of 15.98% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -89.9920| -1.4| 2/27
* Industrials | -24.3171| -0.9| 3/26
* Information Technology | -18.8721| -1.7| 0/14
* Consumer Discretionary | -13.6913| -1.9| 2/10
* Communication Services | -9.0261| -0.9| 0/7
* Real Estate | -7.9069| -1.5| 0/23
* Health Care | -2.1654| -3.0| 1/6
* Utilities | -1.5229| -0.1| 7/9
* Consumer Staples | 0.3919| 0.0| 4/7
* Materials | 11.3256| 0.5| 19/30
* Energy | 19.3265| 0.5| 25/12
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* TD Bank | -20.9300| -1.9| 25.2| -11.5
* Royal Bank of Canada | -13.8600| -1.1| -26.6| -4.9
* Magna International | -9.8160| -6.5| 54.3| -26.2
* Suncor Energy | 4.4800| 1.1| 15.6| 35.4
* TC Energy | 5.7900| 1.3| -58.8| 10.6
* Nutrien | 8.0920| 1.8| -24.9| 25.7
US
By Rita Nazareth
(Bloomberg) — A sobering tone took over Wall Street after a rally that added $7 trillion to the stock market, with traders bracing for hawkish rhetoric from Federal Reserve officials at the Jackson Hole retreat later this week.
Equities saw their worst rout in two months, following a surge that drove the S&P 500 to its best start to a third quarter since 1932.
The Nasdaq 100 underperformed as Treasury 10-year yields topped 3%.
The meme-stock frenzy continued to unravel, with other speculative corners of the market like Bitcoin and profitless tech firms also getting clobbered.
The CBOE Volatility Index, or VIX, soared.
As the dollar gained, the euro succumbed to a two-decade low.
The furious runup in US shares from June lows hit a wall as the earnings season wrapped up, with the threat of an economic recession still looming large amid warnings from Fed officials that the fight against inflation is far from over. That stance will likely be reinforced when Jerome Powell speaks Friday at the prestigious event in Wyoming’s Grand Teton mountains, which has been used by Fed chairs as a venue for making key policy announcements.
“He may try to send a clear message that even if they have a slower pace of rate hikes, that won’t signal a lower peak rate or that they will be quick to cut rates,” wrote Ed Moya, senior market analyst at Oanda. “After this week, Wall Street should not be surprised if Fed fund futures start pricing in rate hikes for next year. This could be the week many return from vacation and double-down on their bear-market rally calls.”
In fact, while the recent surge in stocks has triggered chatter about a new bull run, history shows there may be more turbulence ahead. Looking back to the last six bear markets since the 1970s, four of them have experienced an average of six or seven short-lived up trends, according to Glenmede.
The study also showed that the 17% surge from June lows was consistent with historical bear-market rallies.
“There may be further downside to the ongoing bear market, justifying an underweight to risk assets,” wrote Jason Pride, the firm’s chief investment officer of private wealth.
Investors are also waking up to the imminent acceleration of the Fed’s balance-sheet reduction.
So-called quantitative tightening kicks into top gear next month, and will add to pressure on riskier assets which have benefited from ample liquidity.
Strategists at Bank of America Corp. last week said that the winding down of the central bank’s balance sheet poses a risk to equity prices.
Meantime, hedge funds are rapidly positioning for higher rates in a key corner of the derivatives market.
The group has collectively placed a big short across futures referencing the official successor to London interbank offered rate known as the Secured Overnight Financing Rate.
This wager stands to benefit should Powell effectively rule out a dovish pivot this week.
The debate for most investors has shifted from a focus on the odds of a recession to how the Fed will impact markets, according to Lindsey Bell, chief money and markets strategist at Ally, who bets volatility will likely increase as investors look for catalysts.
“With real rates still rising and prospects for 2023 rate cuts fading in the bond market, stock valuations look extremely stretched, especially if as we suspect, policy-driven economic slowing will prove an obstacle to currently optimistic 2023 earnings estimates,” Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, said in a note. “Stocks are overbought. Sit it out for now.”
Stocks and bonds are set to tumble once more even though inflation has likely peaked, according to the latest MLIV Pulse survey, as rate hikes reawaken the great 2022 selloff.
Ahead of the Jackson Hole symposium, 68% of respondents see the most destabilizing era of price pressures in decades eroding corporate margins and sending equities lower.
As investors wonder whether the selloff will get worse from here, Lori Calvasina at RBC Capital Markets says “it seems premature to call an end to the rebound just yet” even with stocks set up for “some choppiness” in the second half of 2022.  “Deeply depressed levels of investor sentiment, which continue to show signs of healing, have kept us out of the bearish camp,” she added.
Elsewhere, gold dropped for a sixth day as a stronger dollar and higher bond yields are bad for bullion as it pays no interest and is priced in the US currency.
Oil clung to $90 at the conclusion of a volatile session after Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said “extreme” volatility and lack of liquidity mean the futures market is increasingly disconnected from fundamentals and OPEC+ may be forced to cut production.
What to watch this week:
* US new home sales, S&P Global PMIs, Tuesday
* Minneapolis Fed President Neel Kashkari speaks at a Q&A session, Tuesday
* US durable goods, MBA mortgage applications, pending home sales, Wednesday
* US GDP, initial jobless claims, Thursday
* Kansas City Fed hosts its annual economic policy symposium in Jackson Hole, Wyoming, Thursday
* ECB’s July minutes, Thursday
* Fed Chair Powell speaks at Jackson Hole, Friday
* US personal income, PCE deflator, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.1% 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 1.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.6%
* The euro fell 0.9% to $0.9943
* The British pound fell 0.5% to $1.1766
* The Japanese yen fell 0.4% to 137.45 per dollar
Bonds
* The yield on 10-year Treasuries advanced six basis points to 3.03%
* Germany’s 10-year yield advanced eight basis points to 1.31%
* Britain’s 10-year yield advanced 10 basis points to 2.51%
Commodities
* West Texas Intermediate crude fell 0.6% to $90.23 a barrel
* Gold futures fell 0.8% to $1,748.40 an ounce
–With assistance from Andreea Papuc, Robert Brand, Vildana Hajric, Cormac Mullen and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

And the trouble is, if you don’t risk anything, you risk even more. –Erica Jong, b.1942.

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.

August 19, 2004: The Internet search engine Google went public.  Go to article »

Orville Wright, aviator, b. 1871.
Coco Chanel, designer b. 1883.
Bill Clinton, 42^nd President,  b. 1946.

What It’s Like to Visit Los Angeles Right Now

NASA’s Webb telescope will observe exoplanets, and you have a chance to name them.  Scientists have organized a global search for the perfect names for 20 other worlds. Here’s how to submit your ideas. 

‘Wonder Years’ star Danica McKellar explains why she became a mathematician and stopped acting.  This former actress decided it was time for a major career change. 

PHOTOS OF THE DAY

Samuel Pupo, a surfer representing Brazil, competes during the Outerknown Tahiti Pro Tour
CREDIT: Jerome Brouillet/AFP/Getty Images

A robot design resembling a fish goes on display at the World Robot Conference
CREDIT: Wang Zhao/AFP/Getty Images

W1 Curates launches W1 Immersive with Waves, the first solo exhibition of Maxim Zhestkov at Flannels on Oxford Street
CREDIT: Guy Bell/Rex/Shutterstock

Market Closes for August 19^th, 2022

Market Index	Close	Change
Dow Jones	33706.74	-292.30
		-0.86%
S&P 500	4228.48	-55.26
		-1.29%
NASDAQ	12705.21	-260.13 -2.01%
TSX	20111.38	-153.99
		-0.76%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28930.33	-11.81
		-0.04%
HANG SENG	19773.03	+9.12
		+0.05%
SENSEX	59646.15	-651.85
		-1.08%
FTSE 100*	7550.37	+8.52 +0.11%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.941	2.890
CND. 30 Year Bond	2.940	2.842
U.S.    10 Year Bond	2.9721	2.8822
U.S. 30 Year Bond	3.2129	3.1365

Currencies

BOC Close	Today	Previous
Canadian $	0.7696	0.7724
US $	1.2993	1.2947
Euro Rate 1 Euro=		Inverse
Canadian $	1.3045	0.7666
US $	1.0040	0.9960

Commodities

Gold	Close	Previous
London Gold Fix	1765.55	1767.20
Oil
WTI Crude Future	90.77	90.50

Market Commentary:
On this day in 2004, in the most eagerly anticipated initial public offering in years, Google’s stock began trading. The company conducted a rare “Dutch auction” in which bidders (including individual investors) competed to create the price at which all shares could be sold. Initially priced at $85, the stock opened for trading at $100 a share and closed at $100.335 on volume of 22.4 million shares. Although most investment bankers jeered, the IPO was a success.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities fell as financials, tech and materials dragged the market lower. The S&P/TSX Composite fell 0.8% at 20,111.38 in Toronto.
The move was the biggest since a 1% decline on Aug. 2 and follows the previous session’s increase of 0.4%.
Shopify Inc. contributed the most to the index decline, decreasing 6.9%. Ballard Power Systems Inc. had the largest drop, falling 7.9%.
Today, 187 of 238 shares fell, while 48 rose; 9 of 11 sectors were lower, led by financials stocks.
Insights
* So far this week, the index fell 0.3%
* The index declined 0.5% in the past 52 weeks. The MSCI AC Americas Index lost 5.8% in the same period
* The S&P/TSX Composite is 9.5% below its 52-week high on April 5, 2022 and 10.7% above its low on July 14, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.5 on a trailing basis and 12.5 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 13.58% compared with 13.32% in the previous session and the average of 16.68% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -50.2411| -0.8| 2/27
* Information Technology | -42.0947| -3.7| 0/14
* Materials | -35.0140| -1.6| 2/48
* Energy | -15.5439| -0.4| 11/27
* Industrials | -8.6820| -0.3| 8/21
* Consumer Discretionary | -6.4958| -0.9| 1/12
* Real Estate | -6.0974| -1.1| 3/20
* Health Care | -2.5778| -3.4| 1/6
* Consumer Staples | -2.0507| -0.2| 6/3
* Utilities | 4.8785| 0.5| 8/8
* Communication Services | 9.9339| 1.0| 6/1
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Shopify | -25.9500| -6.9| -4.8| -74.5
* TD Bank | -11.9000| -1.1| -6.3| -9.8
* Bank of Montreal | -7.7690| -1.2| -27.5| -1.7
* Brookfield Infrastructure | 3.6270| 2.1| 66.7| 7.6
* BCE | 3.9490| 1.0| 29.3| 0.3
* Telus | 4.5480| 1.6| 1.3| 3.2
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — Stocks fell in a decisive pivot that snapped the longest weekly rally since November, as short-sellers resurfaced and investors turned cautious after Federal Reserve officials beat the drum on hiking rates.
Treasury yields climbed, while the dollar capped its best week since April 2020.
The S&P 500 Index notched its biggest daily decline since June, sending the benchmark to its first weekly loss in five weeks.
The tech-heavy Nasdaq 100 underperformed major benchmarks, with growth-related stocks among the hardest hit Friday.
Meanwhile, Wall Street’s fear gauge, the CBOE Volatility Index, jumped the most in more than two weeks, back above 20.
Expiration of $2 trillion in options, obliging investors to either roll over existing positions or start new ones, set the stage for a volatile session as failure to break a key threshold for the S&P 500 around 4,300 appeared to open the door to selling positions.
And bears pounced.
A basket of the most-shorted stocks dropped almost 6%, extending its weekly loss to 12% and giving short sellers their best week since March 2020.
In a blow to individual investors, high-flying meme stock Bed Bath & Beyond tumbled more than 40% after Ryan Cohen sold his entire stake in the retailer.
Cryptocurrency-linked stocks tumbled, tracking losses in Bitcoin: Coinbase Global Inc., Marathon Digital Holdings and Riot Blockchain Inc. each dropped more than 8% each.
Bitcoin sank back below $21,500 apiece.
One bright spot in the equity space was Occidental Petroleum Corp., rallying the most since March on news that Warren Buffett’s Berkshire Hathaway Inc. won approval from US regulators to buy as much as 50% in the oil company.
Against a backdrop of fear and volatility, the dollar marched higher for a third day in a row.
Treasuries fell, with the two-year Treasury yield, the most sensitive to policy changes, jumping 5 basis points.
Ahead of the Fed’s Jackson Hole gathering next week, officials reiterated their resolve to raise rates to curb stubbornly high inflation.
In comments Thursday, two voting members of the Federal Open Market Committee — St. Louis’s James Bullard and Kansas City’s Esther George —  stood firm on the need to hike rates, though they diverged on the size of the
September move.
Richmond’s Thomas Barkin echoed that resolve on Friday, noting the risk those efforts could cause a recession.
“Fighting the Fed is not a good policy at this juncture,” Jose Torres, senior economist at Interactive Brokers, said in an interview. “If you didn’t fight the Fed while they were engaging in quantitative easing and they boosted asset prices, why would you fight the Fed now when they’re engaging in the opposite. The same way we got a really violent summer bear-market rally, you can have those moves exacerbated the other way, particularly as liquidity conditions tighten.”
The pullback in equities this week follows a rally that has sent the S&P 500 up more the 15% from its mid-June nadir amid speculation that the Fed may scale back its aggressive path of rate hikes.
And a force that contributed to the rally is now showing signs of fatigue, with hedge funds dialing down purchases of shares.
Other Fed officials joined the chorus on a hawkish stance in runup to the annual symposium at Jackson Hole Aug. 25-27.
San Francisco’s Mary Daly pushed back against bets for rate cuts before the end of 2023 and Minneapolis’s Neel Kashkari said that “we have an inflation problem right now,” and that the central bank has to get it down “urgently.”
“We think the Fed is likely to put an exclamation point on any premature notion that easing is in the cards, and we think they might do that with more hawkish commentary,” Leo Grohowski, CIO at BNY Wealth Management, said by phone. “There’s been a big change in sentiment and perhaps a little bit too much complacency here built in the short term.”

Other market commentary
* “Markets have been rallying on the back of three assumptions: a moderated recession-to-come, a Fed pivot and an earnings expansion: from that perspective, this week has been sobering with notably a negative macro news flow,” Florian Ielpo, head of macro research at Lombard Odier Asset Management, wrote. “This week, we have seen a pause in this bear market rally which has not yet mutated into a turning point. The macro-heavy next two weeks should bring about more clarity in this matter.”
* “It is patently clear that the Fed has inflation reduction as its main aim, even though it acknowledges the knock-on risk of derailing the economy,” Richard Hunter, the head of markets at Interactive Investor International in Leeds, UK, said. “Comments from several Fed officials suggest that there remains some way to go before victory can be declared on taming inflation.”

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.9%
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World index fell 1.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.5% to $1.0041
* The British pound fell 0.8% to $1.1832
* The Japanese yen fell 0.7% to 136.78 per dollar
Bonds
* The yield on 10-year Treasuries advanced 10 basis points to 2.98%
* Germany’s 10-year yield advanced 13 basis points to 1.23%
* Britain’s 10-year yield advanced 10 basis points to 2.41%
Commodities
* West Texas Intermediate crude fell 0.4% to $90.13 a barrel
* Gold futures fell 0.6% to $1,761 an ounce
–With assistance from James Hirai, Kat Van Hoof, Tassia Sipahutar, Srinivasan Sivabalan, Emily Graffeo, Lu Wang and Isabelle Lee.
Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

During times of universal deceit, telling the truth becomes a revolutionary act. -George Orwell, 1903-1950.

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.
August 18, 1920: The Nineteenth Amendment is ratified after Tennessee, by just one vote becomes the 36^th state to approve it, ending the 72-year fight to win women the right to vote in the United States.
August 18, 1969: The Woodstock Music and Art Fair in Bethel, N.Y., concluded with a mid-morning set by Jimi Hendrix. Go to article »
1872: First mail-order catalog published.
1960: First Birth Control pills.

Robert Redford, b. 1937.
Rosalynn Carter, b. 1927.

Priscilla Presley remembers Elvis on the 45th anniversary of his death.  Presley, who was married to the king of rock and roll, was joined by over 30,000 fans this week for a candlelight vigil to honor her late husband.

Scientists discover a 5-mile wide undersea crater.  A massive crater was found off the coast of West Africa. No, it wasn’t caused by the asteroid that doomed the dinosaurs, but scientists say it did slam into the Earth’s surface around the same time.

Japan wants young people to drink more alcohol.  Yes, you read that correctly. The Japanese government has launched a contest to find new ways to encourage young people to drink more because the country’s alcohol sales and liquor tax revenues have plummeted. 

Banning trans fats reduced heart attacks in Denmark.
PHOTOS OF THE DAY

A surfer entering the North Sea in Northumberland
CREDIT: Owen Humphreys/PA

France’s Vahine Fierro competes in the Outerknown Tahiti Pro 2022, the Women’s WSL Championship Tour. For the first time since 2006, members of the women’s World Surf League are competing in Teahupo’o, a wave respected and feared by board-riders worldwide
CREDIT: Jerome Brouillet/AFP/Getty Images

Beluga whales underwater in the murky waters of the Churchill River near Hudson Bay. Several thousand tourists come every year to the small town of Churchill in northern Manitoba to observe the whales
CREDIT: Olivier Morin/AFP/Getty Images

Market Closes for August 18^th, 2022

Market Index	Close	Change
Dow Jones	33999.04	+18.72
		+0.06%
S&P 500	4283.74	+9.70
		+0.23%
NASDAQ	12965.34	+27.22 +0.21%
TSX	20265.37	+83.93
		+0.42%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28942.14	-280.63
		-0.96%
HANG SENG	19763.91	-158.54
		-0.80%
SENSEX	60298.00	+37.87
		+0.06%
FTSE 100*	7541.85	+26.10 +0.35%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.890	2.863
CND. 30 Year Bond	2.842	2.912
U.S.    10 Year Bond	2.8822	2.8968
U.S. 30 Year Bond	3.1365	3.1513

Currencies

BOC Close	Today	Previous
Canadian $	0.7724	0.7745
US $	1.2947	1.2912
Euro Rate 1 Euro=		Inverse
Canadian $	1.3064	0.7655
US $	1.0090	0.9911

Commodities

Gold	Close	Previous
London Gold Fix	1767.20	1774.85
Oil
WTI Crude Future	90.50	88.11

Market Commentary:
On this day in 1982, as a bull market suddenly materialized out of nowhere, daily trading volume on the New York Stock Exchange exceeded 100 million shares for the first time, with 132,681,120 shares changing hands.
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian equities gained, as energy weighed on the index with oil prices gaining for a second day.
The S&P/TSX Composite rose 0.4% at 20,265.37 in Toronto.
The move follows the previous session’s decrease of 0.4%.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.9%.
Athabasca Oil Corp. had the largest percentage increase, rising 9.0%.
Today, 151 of 238 shares rose, while 82 fell; 3 of 11 sectors were higher. 
Insights
* So far this week, the index rose 0.4%
* The index was little changed in the past 52 weeks. The MSCI AC Americas Index lost 4.6% in the same period
* The S&P/TSX Composite is 8.8% below its 52-week high on April 5, 2022 and 11.5% above its low on July 14, 2022
* The S&P/TSX Composite is up 1.4% in the past 5 days and rose 9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.7 on a trailing basis and 12.6 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$3.22t
* 30-day price volatility fell to 13.32% compared with 14.11% in the previous session and the average of 16.94% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 69.0385| 2.0| 35/1
* Materials | 21.5110| 1.0| 45/6
* Financials | 13.8517| 0.2| 22/7
* Consumer Discretionary | -0.8577| -0.1| 7/6
* Real Estate | -1.1869| -0.2| 9/14
* Communication Services | -1.4041| -0.1| 2/4
* Health Care | -1.6419| -2.1| 1/6
* Utilities | -2.0418| -0.2| 8/8
* Consumer Staples | -2.6636| -0.3| 5/6
* Information Technology | -3.4604| -0.3| 3/9
* Industrials | -7.2146| -0.3| 14/15
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian Natural Resources | 16.0600| 2.9| 80.3| 35.5
* Enbridge | 11.4400| 1.5| 14.2| 13.4
* Suncor Energy | 9.5390| 2.4| 6.0| 34.9
* Waste Connections | -2.7980| -0.9| -5.4| 6.8
* Shopify | -3.1460| -0.8| -25.0| -72.6
* Canadian Pacific | -3.9700| -0.6| 9.2| 16.5
US
By Stephen Kirkland
(Bloomberg) — US stocks ended the day higher after swinging between modest gains and losses as mixed economic and earnings data failed to spark a broad conviction trade.
The dollar and bonds also rose.
The S&P 500 rose 0.2%, with volumes holding about 20% below the 30-day average exacerbating price swings.
Light trading also typified the Nasdaq 100, which was 0.3% higher after falling 0.5%.
Treasury yields stayed lower after comments from Federal Reserve officials backing rate hikes.
Signs of strength in demand for labor came from the weekly US jobless claims data falling for the first time in three weeks, while a gauge of manufacturing activity in the Philadelphia area unexpectedly expanded in August for the first
time in three months, though the outlook remained weak.
Meanwhile, existing-home sales fell for a sixth straight month, the latest indication of the housing market’s rapid decline.
In corporate news, Cisco Systems Inc. rose after issuing an upbeat forecast for quarterly sales as chip-supply shortages ease and the company is able to fill more orders.
Bed Bath & Beyond Inc. plunged after Ryan Cohen’s RC Ventures said it might sell as much as 7.78 million shares in the retailer.
Kohl’s Corp. dropped after the department store operator cut its full-year earnings and sales guidance for the second straight quarter as inflation suppresses demand.
Following the equity rally from June lows, sentiment turned fragile Wednesday after the Fed minutes signaled inflation-busting rate hikes will continue despite a weakening economy.
Further clues for policy makers’ views may come at the Fed’s annual symposium in Jackson Hole, Wyoming next week.
“With Jackson hole kicking off in a week, that already is now top of mind — I would say the minutes, if you were hoping to see dovish, you got a seven out 10,” Alex Chaloff, co-head of investment strategies at Bernstein Private Wealth Management, said by phone. “If you just think about the disconnect between earnings and what’s gone on in markets, this is a macro driven market right now. Inflation has peaked and the numbers will demonstrate that we’ve rolled over.”
In comments Wednesday from Fed officials, St. Louis Fed President James Bullard told the Wall Street Journal he backed another 75 basis-point increase at next month’s meeting.
Meanwhile, Minneapolis Fed’s Neel Kashkari said the Fed had “more work to do” in raising rates to curb inflation.
Zhiwei Ren, portfolio manager at Penn Mutual Asset Management, attributed the rally from the mid-June lows to fundamentals and technicals.
“On the economy side, I think recently you’re seeing data that’s just working the way the Fed was hoping — inflation is coming down and the job numbers are still robust. The fear of recession is much, much lower now — a lot of people are talking about a soft landing,” Ren said.
As for technicals, futures positioning was very short, he said. “So in that kind of background, if you have some good news, then people have to buy back the equities they sold, and I think that’s what’s happened.”
Oil rose for a second day as a bullish US stockpile report eased fears of an economic slowdown.
West Texas Intermediate futures traded back around $90 a barrel..
Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.6%
* The euro fell 0.8% to $1.0094
* The British pound fell 0.9% to $1.1936
* The Japanese yen fell 0.6% to 135.89 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 2.88%
* Germany’s 10-year yield advanced two basis points to 1.10%
* Britain’s 10-year yield advanced two basis points to 2.31%
Commodities
* West Texas Intermediate crude rose 2.9% to $90.70 a barrel
* Gold futures fell 0.2% to $1,773 an ounce
–With assistance from Cormac Mullen, Andreea Papuc, Tassia Sipahutar, Srinivasan Sivabalan, Isabelle Lee and Vildana Hajric.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

But where I feel that people like us understood the situation better than so-called experts,
is not in any power to foretell specific events, but in the power to grasp
what kind of world we are living in. -George Orwell, 1903-1950.

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