Month: January 2023

Dear Friends,

Tangents:
On Jan. 31, 1865, the House of Representatives passed a constitutional amendment to abolish slavery.  Go to article » 
January 31, 1928: Leon Trotsky(Russian Revolutionary) is exiled to Alma-Ata (Kazakhstan).
1958: Explorer I Space Satellite launched.

Franz Schubert, composer, b. 1797.

Meet the first mom to have two sons face off in the Super Bowl.  Donna Kelce is already a winner. Her two sons — Jason and Travis — will both be at the Super Bowl with their respective teams, the Philadelphia Eagles and the Kansas City Chiefs.

Priscilla Presley contests the validity of Lisa Marie Presley’s will.  Just days after Lisa Marie Presley was laid to rest, her mother, Priscilla Presley, is disputing some details in her daughter’s will.

Cryptic lost Canaanite language decoded on ‘Rosetta Stone’-like tablets:  Two ancient clay tablets discovered in Iraq and covered from top to bottom in cuneiform writing contain details of a “lost” Canaanite language that has remarkable similarities with ancient Hebrew.

The tablets, thought to be nearly 4,000 years old, record phrases in the almost unknown language of the Amorite people alongside translations in the Akkadian language, which can be read by modern scholars.
Full Story: Live Science (1/30)

Sitting in traffic may cause brain damage.

PHOTOS OF THE DAY

Lerwick, Scotland
Members of the Up Helly Aa Jarl Squad with their Viking galley ship celebrate the influence of the Vikings in the Shetland Islands
Photograph: Murdo MacLeod/The Guardian

Shalal Sijlyat Rocks, Saudi Arabia
The peloton during stage 2 of the Saudi Tour 2023
Photograph: Alex Broadway/Getty Images

London, England
A chain and pendant associated with Henry VIII and Katherine of Aragon on display at the British Museum. The item was found in Warwickshire by a metal detectorist
Photograph: Sean Smith/The Guardian
Market Closes for January 31^st, 2023

Market Index	Close	Change
Dow Jones	34086.04	+368.95
		+1.09%
S&P 500	4076.60	+58.83
		+1.46%
NASDAQ	11584.55	+190.74
		+1.67%
TSX	20767.38	+195.27
		+0.95%

International Markets

Market Index	Close	Change
NIKKEI	27327.11	-106.29
		-0.39%
HANG SENG	21842.33	-227.40
		-1.03%
SENSEX	59549.90	+49.49
		+0.08%
FTSE 100*	7771.70	-13.17
		-0.17%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.916		2.913
CND. 30 Year Bond		2.975		2.954
U.S.    10 Year Bond		3.5069		3.5458
U.S. 30 Year Bond		3.6322		3.6579

Currencies

BOC Close	Today	Previous
Canadian $	0.7515	0.7469
US $	1.3307	1.3389
Euro Rate 1 Euro=		Inverse
Canadian $	1.4453	0.6919
US  $	1.0862	0.9206

Commodities

Gold	Close	Previous
London Gold Fix	1924.10	1923.05
Oil
WTI Crude Future	78.87	77.90

Market Commentary:
On this day in 1994: Just over a year after breaking the 700 barrier, the Nasdaq Composite Index closed above 800 for the first time, finishing the day at 800.47.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.9% at 20,767.38 in Toronto.
The move was the biggest since rising 1.6% on Jan. 6 and follows the previous session’s decrease of 0.7%.
Shopify Inc. contributed the most to the index gain, increasing 3.7%.
Lithium Americas Corp. had the largest increase, rising 13.5%.
Today, 168 of 236 shares rose, while 59 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index rose 7.1%
* The index declined 1.6% in the past 52 weeks. The MSCI AC Americas Index lost 10% in the same period
* The S&P/TSX Composite is 6.5% below its 52-week high on April 5, 2022 and 16.2% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.7% in the past 5 days and rose 7.1% 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 13.2 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$3.27t
* 30-day price volatility fell to 11.79% compared with 11.96% in the previous session and the average of 13.03% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 64.8770| 1.0| 22/6
Materials | 35.5421| 1.4| 34/14
Information Technology | 28.2807| 2.2| 14/0
Industrials | 26.4217| 1.0| 22/3
Energy | 26.1957| 0.7| 26/12
Consumer Discretionary | 5.4984| 0.7| 12/3
Consumer Staples | 5.0908| 0.6| 8/2
Real Estate | 2.8359| 0.5| 15/8
Communication Services | 1.8560| 0.2| 4/1
Health Care | 0.4469| 0.6| 4/3
Utilities | -1.7611| -0.2| 7/7
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 19.3900| 3.7| 3.4| 39.5
TD Bank | 17.6600| 1.6| 32.4| 5.0
Nutrien | 12.5000| 3.3| 29.1| 11.4
Brookfield Renewable Partners | -0.4990| -0.9| -19.2| 13.0
Bausch Health | -0.5400| -2.6| 8.1| 20.1
Dollarama | -1.1900| -0.8| 51.2| 0.5
US
By Emily Graffeo and Vildana Hajric
(Bloomberg) — US stocks ended January with a gain, as investors cheered signs of labor costs easing and inflation cooling as they gear up for Wednesday’s Federal Reserve decision.
With volumes relatively light on Tuesday, the stock gains could have been spurred by short covering.
The S&P 500 still had its best month since October, as traders expect the Fed to slow its pace of interest-rate hikes.
The Nasdaq 100 rallied the most this month since July and had its best start to year since 2001, according to data compiled by Bloomberg.
Treasuries gained, with the 10-year yield sliding to around 3.49%.
It fell more than 30 basis points during January, the most since November.
A dollar index dropped.
Investors are grappling with a flurry of economic data, earnings and rate decisions this week.
Data on Tuesday showed prices in US housing market continued to cool, while another report highlighted consumer confidence unexpectedly falling.
Hanging over everything is Wednesday’s Fed decision, with the central bank widely expected to raise rates by a quarter percentage point.
While Tuesday’s data from the Labor Department added to evidence that wage growth is slowing, it may still not be enough to sway the Fed.
Investors will be watching for the tone officials set for future meetings.
While Fed Chair Jerome Powell has repeatedly pushed back against hopes of rate cuts later this year, central bank officials could consider pausing rate hikes after their March meeting.
But the recent rally in stocks and bonds does not help the Fed’s bid to tighten financial conditions, said Jeff Muhlenkamp, portfolio manager at Muhlenkamp & Co.
Speaking about Powell’s presser Wednesday, he said “I expect that he will continue to try to talk the market into doing something that it is not currently doing.”
Investors also assessed a bevy of earnings reports on Tuesday.
Shares of McDonald’s Corp. declined and those of Caterpillar Inc. fell the most since Sept. 23 after earnings misses.
Meanwhile, General Motors Co. rose after posting upbeat forecasts.
Exxon Mobil Corp.’s fourth quarter earnings per share beat estimates and the firm posted full-year profit that was the highest on record.
Now that investors have had a chance to parse a slew of economic reports and earnings results to start the year — with much of it coming in as expected — they’re focusing on what the Fed might do in the latter half of 2023, says Shawn Cruz, head trading strategist at TD Ameritrade.
“So I think we know where our baseline is now and what’s driving markets is Fed policy going into the second half of this year,” he said in an interview.
Key events this week:
* Eurozone Manufacturing PMI, CPI, unemployment, Wednesday
* US construction spending, ISM Manufacturing, light vehicle sales, Wednesday
* FOMC rate decision, Fed Chair Jerome Powell press conference, Wednesday
* Earnings Wednesday include: Meta Platforms and Peloton Interactive
* Eurozone ECB rate decision, President Christine Lagarde press conference, Thursday
* UK BOE rate decision, Thursday
* US factory orders, initial jobless claims, US durable goods, Thursday
* Earnings Thursday include: Alphabet, Apple, Amazon, Qualcomm and Deutsche Bank and Santander
* Eurozone S&P Global Eurozone Services PMI, PPI, Friday
* US unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.6%
* The Dow Jones Industrial Average rose 1.1%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.0872
* The British pound fell 0.2% to $1.2328
* The Japanese yen rose 0.2% to 130.16 per dollar
Cryptocurrencies
* Bitcoin rose 1.5% to $23,090.48
* Ether rose 1.9% to $1,586.45
Bonds
* The yield on 10-year Treasuries declined five basis points to 3.49%
* Germany’s 10-year yield declined three basis points to 2.29%
* Britain’s 10-year yield was little changed at 3.33%
Commodities
* West Texas Intermediate crude rose 1.5% to $79.03 a barrel
* Gold futures rose 0.2% to $1,943.10 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee, Cristin Flanagan and Alyce Andres.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
Press on.  Nothing in the world can take the place of persistence. –Ray A. Kroc, 1902-1984.

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 Jan. 30, 1948, Indian political and spiritual leader Mahatma Gandhi was murdered by a Hindu extremist. Go to article » 

The actor Gene Hackman is 93 today.
Vast subterranean aqueduct in Naples once ‘served elite Roman villas’:  Forty years ago, when children in Naples were playing in caves and tunnels under the hill of Posillipo in Italy, they didn’t know their playground was actually a Roman aqueduct.
When they shared their memories with archaeological authorities recently, it kicked off an exploration of one of the longest, most mysterious examples of ancient water infrastructure in the Roman world. Full Story: Live Science (1/30)

Flying saucers to mind control: 24 declassified military & CIA secrets: Government and military secrets can range from terrifying to amusing to downright absurd, but most are nothing short of intriguing.
From a secret U.S. Air Force project to build a supersonic flying saucer to a now-famous World War II-era research program that produced the first atomic bombs to a plan to train domesticated cats to spy on the Soviet Union, here are 24 declassified military and CIA secrets. Full Story: Live Science (1/27)

The universe is slightly hotter than it should be. ‘Dark photons’ could be to blame:  Observations suggest that the intergalactic gas in our universe is a little hotter than it should be. Recently, a team of astrophysicists have used sophisticated computer simulations to propose a radical solution: An exotic form of dark matter known as “dark photons” could be heating the place up.  Full Story: Live Science (1/29)

NASA is going to visit the $10 quintillion asteroid.

15-year-old wins US figure skating title.  Teenager Isabeau Levito is projected to be a future Olympian. Check out her latest major accomplishment.

Bought for $600, this rare painting sold for $3 million.  The once-abandoned work by the Flemish artist Anthony van Dyck was found in a shed. Maybe you have valuable items collecting dust in your garage too?

PHOTOS OF THE DAY

Hyderabad, India
School students scatter flowers on the statue of Mahatma Gandhi on the anniversary of his death. The anniversary of Gandhi, who is widely known in India as Bapu (father), is also observed as Martyr’s Day in the country
Photograph: Noah Seelam/AFP/Getty Images

Amsterdam, Netherlands
The Bust, painted by Rembrandt van Rijn, is unpacked by the Hermitage Museum. More than 30 paintings from The Leiden Collection are due to arrive in Amsterdam. Under the title Rembrandt and contemporaries, these pieces will be exhibited to the public from February to the end of August
Photograph: Hollandse Hoogte/Rex/Shutterstock

Marib, Yemen
Farmers pick oranges during harvest season in a field on the outskirts of Yemen’s north-eastern city
Photograph: AFP/Getty Images
Market Closes for January 30^th, 2023

Market Index	Close	Change
Dow Jones	33717.09	-260.99
		-0.77%
S&P 500	4017.77	-52.79
		-1.30%
NASDAQ	11393.82	-227.89
		-1.96%
TSX	20572.11	-142.36
		-0.69%

International Markets

Market Index	Close	Change
NIKKEI	27433.40	+50.84
		+0.19%
HANG SENG	22069.73	-619.17
		-2.73%
SENSEX	59500.41	+169.51
		+0.29%
FTSE 100*	7784.87	+19.72
		+0.25%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.913	2.889
CND. 30 Year Bond	2.954	2.940
U.S.    10 Year Bond	3.5458	3.5016
U.S. 30 Year Bond	3.6579	3.6149

Currencies

BOC Close	Today	Previous
Canadian $	0.7469	0.7517
US $	1.3389	1.3303
Euro Rate 1 Euro=		Inverse
Canadian $	1.4528	0.6883
US  $	1.0852	0.9215

Commodities

Gold	Close	Previous
London Gold Fix	1923.05	1932.45
Oil
WTI Crude Future	77.90	79.68

Market Commentary:
On this day in 2000: As the Internet bubble neared its peak, 17 dot-com companies spent a total of nearly $38 million for network television ads during Super Bowl XXXIV. By the time of the next Super Bowl, at least three had gone into Chapter 11, thanks largely to these outlays.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.7% at 20,572.11 in Toronto.
The move was the biggest since falling 1.1% on Dec. 28 and follows the previous session’s increase of 0.1%.
Shopify Inc. contributed the most to the index decline, decreasing 5.2%. Westshore Terminals Investment Corp. had the largest drop, falling 7.8%.
Today, 170 of 236 shares fell, while 64 rose; 10 of 11 sectors were lower, led by energy stocks.
Insights
* This month, the index rose 6.1%
* The index declined 0.8% in the past 52 weeks. The MSCI AC Americas Index lost 9.6% in the same period
* The S&P/TSX Composite is 7.4% below its 52-week high on April 5, 2022 and 15.1% above its low on Oct. 13, 2022 * The S&P/TSX Composite is down 0.3% in the past 5 days and rose
6.1% 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 13.4 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$3.29t
* 30-day price volatility fell to 11.96% compared with 12.69% in the previous session and the average of 13.09% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -53.5221| -1.5| 7/32
Information Technology | -36.2360| -2.7| 1/13
Materials | -21.8990| -0.9| 5/45
Financials | -21.0280| -0.3| 13/15
Real Estate | -2.9001| -0.5| 10/13
Utilities | -2.7364| -0.3| 5/11
Industrials | -2.6808| -0.1| 9/17
Health Care | -2.3938| -2.9| 0/6
Consumer Staples | -1.5087| -0.2| 5/6
Consumer Discretionary | -1.5040| -0.2| 6/9
Communication Services | 4.0633| 0.4| 3/3
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -28.3400| -5.2| 11.9| 34.5
Canadian Natural Resources | -14.3000| -2.3| 5.1| 7.6
Brookfield Corp | -10.7500| -2.2| 1.9| 15.4
BCE | 3.5250| 0.9| 49.6| 5.7
Fairfax Financial | 3.8140| 2.8| -71.9| 9.2
RBC | 4.0380| 0.3| -29.8| 6.1
US
By Isabelle Lee
(Bloomberg) — US stocks declined on Monday as investors turned cautious going into an eventful week that includes the Federal Reserve’s rate decision and a slew of big-tech earnings.
The Nasdaq 100 suffered its worst day since Dec. 22 while the S&P 500 fell the most since Jan. 18. Declines in Apple Inc. and Microsoft Inc. weighed on both the indexes as investors await earnings from companies including Alphabet Inc. and Meta Platforms Inc. this week.
Treasuries dropped, with yields climbing across the curve.
The benchmark 10-year rate rose to around 3.55% after ending last week around 3.50%. A dollar index rose.
Oil fell, with the West Texas Intermediate sliding below $78 a barrel as traders await clues about the Fed’s path ahead.
The Fed is widely expected to raise rates by a quarter percentage point on Wednesday, slowing its pace for a second straight session.
But traders will be watching for the tone officials set for future meetings.
Fed Chair Jerome Powell has continued to push back against traders anticipating rate cuts later this year, emphasizing that he won’t budge until inflation has eased meaningfully.
Stocks have still rallied in January, with investors seemingly brushing off Powell’s “higher-for-longer” warning.
“Investors seem to have forgotten the cardinal rule of ‘Don’t Fight the Fed.’ Perhaps this week will serve as a reminder,” a team of Morgan Stanley strategists led by Michael Wilson wrote in a note.
Investors adding to the rally in stocks this month will be disappointed if they’re in direct defiance of the Fed, the strategists said.
Citi Global Wealth’s Kristen Bitterly echoed this, saying that January’s rally was technical as it was largely driven by 2022’s “laggards and losers.”
Traders are also awaiting the US jobs report later this week.
A less tight labor market is a key goal for the Fed.
Investors have also been parsing a slew of earnings reports, with more to come throughout the week.
Signs of earnings pressure have been raising concerns about the health of the economy and the outlook for equities.
“The week ahead will not only be a Fed story, as Friday’s employment situation report will provide clarity on the strength of the labor market to start the new year,” wrote Ben Jeffery and Ian Lyngen of BMO Capital Markets.
The European Central Bank and the Bank of England are also each projected to hike by half a percentage point when they deliver decisions a day after the Fed. 
Key events this week:
* China industrial profits, PMIs, Tuesday
* Eurozone GDP, Tuesday
* US Conference Board consumer confidence, Tuesday
* Earnings Tuesday include: UBS, Unicredit, Snap and Advanced Micro Devices
* Eurozone Manufacturing PMI, CPI, unemployment, Wednesday
* US construction spending, ISM Manufacturing, light vehicle sales, Wednesday
* FOMC rate decision, Fed Chair Jerome Powell press conference, Wednesday
* Earnings Wednesday include: Meta Platforms and Peloton Interactive
* Eurozone ECB rate decision, President Christine Lagarde press conference, Thursday
* UK BOE rate decision, Thursday
* US factory orders, initial jobless claims, US durable goods, Thursday
* Earnings Thursday include: Alphabet, Apple, Amazon, Qualcomm and Deutsche Bank and Santander
* Eurozone S&P Global Eurozone Services PMI, PPI, Friday
* US unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.3% as of 4:01 p.m. New York time
* The Nasdaq 100 fell 2.1%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.0847
* The British pound fell 0.3% to $1.2349
* The Japanese yen fell 0.4% to 130.46 per dollar
Cryptocurrencies
* Bitcoin fell 4.5% to $22,714.77
* Ether fell 5.4% to $1,554.46
Bonds
* The yield on 10-year Treasuries advanced four basis points to 3.54%
* Germany’s 10-year yield advanced eight basis points to 2.32%
* Britain’s 10-year yield advanced one basis point to 3.34%
Commodities
* West Texas Intermediate crude fell 2.3% to $77.81 a barrel
* Gold futures fell 0.4% to $1,937.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Cristin Flanagan, Peyton Forte and Robert Brand.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

We will fail when we fail to try. –Rosa Parks, 1913-2005.
Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

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

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

 

 

 

Dear Friends,

Tangents: Happy Friday.  International Holocaust Remembrance Day.

January 27, 2010: Apple announces the iPad.
On Jan. 27, 1967, Astronauts Virgil I. ”Gus” Grissom, Edward H. White and Roger B. Chaffee died in a flash fire during a test aboard their Apollo I spacecraft at Cape Kennedy, Fla. Go to article » 
1973: Vietnam Peace Agreement signed.

Wolfgang Amadeus Mozart, composer, b. 1756.
Lewis Carroll, writer, b.1832.
Mikhail Baryshnikov, dancer, b.1948.

Beneath a busy street in Jerusalem sits a 1,000-year-old moat with a secret handprint: A mysterious hand imprint carved into the wall of a previously buried moat has grabbed the attention of archaeologists in the Old City of Jerusalem.  Archaeologists made the discovery during survey work ahead of a street infrastructure project near one of the city’s main thoroughfares.  Full Story: Live Science (1/26)

Mysterious 12-sided Roman object found in Belgium may have been used for magical rituals: A metal detectorist in Belgium has unearthed a fragment of a mysterious bronze artifact known as a Roman dodecahedron that is thought to be more than 1,600 years old.  More than a hundred of the puzzling objects have been discovered in Northern Europe over the past 200 years. But no one knows why or how they were used.
Full Story: Live Science (1/26)

Ancient Roman residences with ‘pigeon towers’ discovered in Luxor, Egypt:  Archaeologists have discovered a residential area in Luxor dating to the time when the Roman Empire ruled Egypt.  Archaeologists found a number of residential buildings, along with workshops and pigeon towers, where pigeons could be raised for eating. Full Story: Live Science (1/27)

Eerily perfect galaxy-shaped spiral appears over Hawaii. What is it?  An eerily-perfect “whirlpool” of light in the shape of a spiral galaxy briefly appeared in the night sky above Hawaii.  But what was it?
Full Story: Live Science (1/26)

PHOTOS OF THE DAY

Berlin, Germany
Visitors walk between stelae of the Memorial to the Murdered Jews of Europe in Berlin on International Holocaust Remembrance Day. The memorial to the Jewish victims of the Holocaust was designed by the architects Peter Eisenman and Buro Happold
Photograph: Stefanie Loos/AFP/Getty Images

Dacha-Suu, Kyrgyzstan
Kyrgyz riders compete during the Alaman-Ulak traditional horse game. Alaman-Ulak is considered Kyrgyzstan’s national sport. Players grab a goat or a calf carcass from the ground in full gallop and try to throw it in the place indicated by the judge
Photograph: Vyacheslav Oseledko/Getty Images

Paris, France
Models walk the runway during the Valentino haute couture spring-summer 2023 collection at Paris fashion week
Photograph: Lewis Joly/AP
Market Closes for January 27^th, 2023

Market Index	Close	Change
Dow Jones	33978.08	+28.67
		+0.08%
S&P 500	4070.56	+10.13
		+0.25%
NASDAQ	11621.71	+109.30
		+0.95%
TSX	20714.48	+13.98
		+0.07%

International Markets

Market Index	Close	Change
NIKKEI	27382.56	+19.81
		+0.07%
HANG SENG	22688.90	+122.12
		+0.54%
SENSEX	59330.90	-874.16
		-1.45%
FTSE 100*	7765.15	+4.04
		+0.05%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.889		2.863
CND. 30 Year Bond		2.940		2.945
U.S.    10 Year Bond		3.5016		3.4986
U.S. 30 Year Bond		3.6149		3.6314

Currencies

BOC Close	Today	Previous
Canadian $	0.7517	0.7505
US $	1.3303	1.3325
Euro Rate 1 Euro=		Inverse
Canadian $	1.4476	0.6908
US  $	1.0883	0.9189

Commodities

Gold	Close	Previous
London Gold Fix	1932.45	1930.80
Oil
WTI Crude Future	79.68	81.01

Market Commentary:
On this day in 1938, and after a protracted war with the new Securities and Exchange Commission, the New York Stock Exchange finally recommended an internal reorganization to install a board of governors, a salaried independent president and a specialized administrative staff
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 20,714.48 in Toronto.
Shopify Inc. contributed the most to the index gain, increasing 3.5%.
Lightspeed Commerce Inc. had the largest increase, rising 6.9%.
Today, 125 of 236 shares rose, while 108 fell; 5 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index rose 6.9%
* So far this week, the index rose 1%
* The index advanced 0.8% in the past 52 weeks. The MSCI AC Americas Index lost 6.2% in the same period
* The S&P/TSX Composite is 6.7% below its 52-week high on April 5, 2022 and 15.9% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.7 on a trailing basis and 13.4 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$3.29t
* 30-day price volatility fell to 12.69% compared with 12.92% in the previous session and the average of 13.10% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 28.6854| 0.8| 28/11
Information Technology | 24.6564| 1.9| 11/3
Industrials | 10.5700| 0.4| 21/5
Real Estate | 3.4139| 0.6| 17/6
Health Care | 0.7489| 0.9| 4/3
Consumer Discretionary | -1.5368| -0.2| 7/8
Consumer Staples | -4.2730| -0.5| 7/4
Communication Services | -4.9091| -0.5| 1/5
Utilities | -5.8698| -0.7| 5/10
Financials | -16.6719| -0.3| 12/16
Materials | -20.8199| -0.8| 12/37
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 18.4000| 3.5| -4.0| 41.8
Canadian Natural Resources | 12.7700| 2.1| -1.0| 10.1
TD Bank | 8.1420| 0.7| -45.9| 4.3
Manulife Financial | -5.0720| -1.5| 64.1| 8.3
Couche-Tard | -6.7350| -2.1| 29.7| 0.3
RBC | -9.2290| -0.7| -37.7| 5.8
US
By Rita Nazareth
(Bloomberg) — Wall Street brushed off disappointing outlooks from some of the world’s largest technology companies to push stocks higher on speculation of smaller Federal Reserve hikes as inflation shows signs of easing.
The nascent year’s tech resurgence gave the Nasdaq 100 its best week since November — with Tesla Inc. and Facebook parent Meta Platforms Inc. climbing at least 3% Friday.
The gauge also notched its fourth straight weekly advance.
That’s even after a bleak forecast from Intel Corp. that followed recent worrisome remarks from Microsoft Corp. and Texas Instruments Inc.
Looking into next week, heavyweights Apple Inc.. Amazon.com Inc. and Meta are set to report their quarterly figures, and investors will get a sense on whether market projections are still too rosy as the economy slows down.
The mega caps that have reported so far have mostly beaten estimates by a small margin, said Dennis DeBusschere, founder of 22V Research.
“Strong results from these names will help keep index level estimates from deteriorating too far.”
Companies in the S&P 500 that have exceeded projections on both earnings per share and sales have outperformed the benchmark by an average of 1.45% within a day of reporting, exceeding the norm of the past six years, according to data compiled by Bloomberg Intelligence.
And those that fell short underperformed by just 1.7%, the least negative reaction in eight quarters, as many companies report taking steps to adjust to shifting business conditions.
Traders found solace in data showing the Fed’s preferred inflation measures eased in December to the slowest annual pace in over a year and spending fell.
A separate report from the University of Michigan showed US inflation expectations continued to retreat in late January, helping boost consumer sentiment.
The central bank watches long-term views especially closely, as expectations can become self-fulfilling and lead to higher prices.
Treasury Secretary Janet Yellen said she’s encouraged by recent data on inflation and jobs, but conceded the economy is at risk of recession.
Former Treasury Secretary Lawrence Summers urged the Fed to refrain from signaling its next move after an expected hike next week because of the highly uncertain economic outlook.
“The market has been rallying on the idea that inflation is whipped. But I’m not so sure it’s settled yet,” said Kara Murphy at Kestra Investment Management. “When you think about how monetary policy works, it’s generally slow. Imagine trying to turn the Titanic way in advance of the iceberg — you have to start long before the iceberg is right in front of you, and you can’t always be sure how the economy is going to react.”
Hopes are high for the Fed deliver a 25 basis-point increase on Feb. 1 — shifting away from last year’s bigger moves — but expectations for end-2023 rate cuts are “a step too far,” according to Erick Muller, head of product and investment strategy at Muzinich & Co.
“We will probably see the Fed say ‘we are entering the final phase, but listen carefully guys: we will continue to raise rates,’” Muller said. “A lot of volatility in rates will depend on the path of inflation from here.”

Corporate Highlights:
* Bed Bath & Beyond Inc.’s efforts to find a buyer in bankruptcy have stalled, potentially putting it on a path toward liquidation as it faces a Chapter 11 filing, according to people with knowledge of the matter.
* American Express Co. predicted that revenue and earnings for this year will surge well above what analysts estimated.
* Chevron Corp. posted disappointing results just days after surprising investors with a mammoth buyback program.
* Colgate-Palmolive Co. sold fewer personal-care and household products than expected at the end of last year.
* Goodyear Tire & Rubber Co. will eliminate about 500 jobs in response to weak demand and rising inflation.
* Hasbro Inc., one of the world’s largest toymakers, said it would cut 15% of its workforce, after a disappointing holiday shopping season.  US equities have flown in the face of many dire signals this year, from recession fears to weak earnings. Yet a peek into the trading activity behind the benchmark suggests the bullish run lacks conviction.
Flows into the SPDR S&P 500 ETF Trust (ticker SPY) show that, while the fund is on pace to see net inflows in January after two straight months of investors taking assets out, the total amount of money coming in weekly has been steadily declining this month.
Flows into two other major funds tracking the S&P 500 — the Vanguard S&P 500 ETF (VOO) and iShares Core S&P 500 ETF (IVV) — tell a similar story.
The S&P 500 is on pace for its second-best January since the turn of the century, trailing only the 7.9% jump in 2019.
If history is any guide, the gauge is also likely to be in the green on Dec. 31, as the direction in the first month — a gain or loss — has matched the annual result two-thirds of the time since 1973.
The positive-positive periods delivered a full-year average gain of 20%, while the negative-negative years saw a typical decline of 17%.
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 1%
* The Dow Jones Industrial Average was little changed
* The Stoxx Europe 600 rose 0.3%
* The MSCI World index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.2% to $1.0867
* The British pound fell 0.1% to $1.2392
* The Japanese yen rose 0.3% to 129.88 per dollar
Cryptocurrencies
* Bitcoin rose 0.2% to $23,132
* Ether fell 0.1% to $1,600.62
Bonds
* The yield on 10-year Treasuries advanced two basis points to 3.51%
* Germany’s 10-year yield advanced two basis points to 2.24%
* Britain’s 10-year yield was little changed at 3.32%
Commodities
* West Texas Intermediate crude fell 2% to $79.41 a barrel
* Gold futures fell 0.1% to $1,944.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cecile Gutscher, Sujata Rao, Stephen Kirkland and Vildana Hajric.
Have a  wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

The more you have, the more you owe to others.  Be modest, and if you do happen to have any advantages
don’t let those who are less favored know it. –Princess Zenaida Youssoupoff,1861-1939.

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: Happy Friday Eve.

January 26, 1905: The world’s largest diamond ever, the Cullinan, which weighs 3,106.75 carats (0.621350 kg), is found at the Premier Mine near Pretoria in South Africa.
1788: The first European settlers in Australia landed in present-day Sydney.  Go to article » 

Asteroid set to make ‘extraordinarily close’ approach to Earth tonight. Here’s how to watch.  A small but zippy asteroid will pass close to Earth on Thursday, not to be seen again until 2036.
Asteroid 2023 BU is only about 12 to 26.9 feet (3.7 to 8.2 meters) in diameter and was discovered less than a week ago on January 21 by amateur astronomer Gennadiy Borisov.  Full Story: Live Science (1/26)

52-foot-long Book of the Dead papyrus from ancient Egypt discovered at Saqqara.  Archaeologists in Egypt have discovered a 52-foot-long (16 meters) papyrus containing sections from the Book of the Dead.
The more than 2,000-year-old document was found within a coffin in a tomb south of the Step Pyramid of Djoser at Saqqara.  Full Story: Live Science (1/26)

NASA to test nuclear rocket engine that could take humans to Mars in 45 days.  NASA has revealed plans to create a nuclear-powered rocket that could send astronauts to Mars in just 45 days. The agency, which has partnered with the Pentagon’s Defense Advanced Research Projects Agency (DARPA) to design the rocket, announced on Tuesday (Jan. 24) that it could build a working nuclear thermal rocket engine as soon as 2027.
Full Story: Live Science (1/25)

PHOTOS OF THE DAY

Delhi, India
Members of the Indian central reserve police force join a parade during the 74th Republic Day celebrations in New Delhi. The Republic Day of India marks the date on which the Constitution of India came into force on 26 January 1950 and the country began its transition from a British Dominion into a republic
Photograph: Hjarish Tyagi/EPA

Puebla, Mexico
A column of smoke rises from Popocatepetl Volcano, the second highest peak in Mexico, in the Izta-Popo Zoquiapan national park
Photograph: Anadolu Agency/Getty Images

Agamon Hula, Israel
A hawk lands over a dead Gray Crane at the Agamon Hula Conservation Lake in the north of Israel. As a major stopover for migrating birds along the Syrian-African Rift, hundreds of thousands of birds pass yearly making their way to Africa and then back to Europe
Photograph: Atef Safadi/EPA
Market Closes for January 26^th, 2023

Market Index	Close	Change
Dow Jones	33949.41	+205.57
		+0.61%
S&P 500	4060.43	+44.21
		+1.10%
NASDAQ	11512.41	+199.05
		+1.76%
TSX	20700.50	+100.90
		+0.49%

International Markets

Market Index	Close	Change
NIKKEI	27362.75	-32.26
		-0.12%
HANG SENG	22566.78	+522.13
		+2.37%
SENSEX	Market Closed	N.A.
FTSE 100*	7761.11	+16.24
		+0.21%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.863		2.800
CND. 30 Year Bond		2.945		2.912
U.S.    10 Year Bond		3.4986		3.4416
U.S. 30 Year Bond		3.6314		3.5937

Currencies

BOC Close	Today	Previous
Canadian $	0.7505	0.7471
US $	1.3325	1.3386
Euro Rate 1 Euro=		Inverse
Canadian $	1.4512	0.6891
US  $	1.0890	0.9183

Commodities

Gold	Close	Previous
London Gold Fix	1930.80	1920.75
Oil
WTI Crude Future	81.01	79.85

Market Commentary:
On this day in 1850, Samuel Gompers was born in London, England. Gompers went on to become the founding president of the American Federation of Labor in 1886 after working in a cigar factory. The nationwide group of unions became a driving force in the expansion of worker rights and galvanized the labor movement with strikes and boycotts.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.5% at 20,700.50 in Toronto.
The index advanced to the highest closing level since June 8 after the previous session’s decrease of 0.1%.
Royal Bank of Canada contributed the most to the index gain, increasing 1.6%.
Interfor Corp. had the largest increase, rising 10.4%.
Today, 135 of 236 shares rose, while 99 fell; 6 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index rose 6.8%
* So far this week, the index rose 1%
* The index advanced 0.5% in the past 52 weeks. The MSCI AC Americas Index lost 7% in the same period
* The S&P/TSX Composite is 6.8% below its 52-week high on April 5, 2022 and 15.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 1.8% in the past 5 days and rose 6.1% 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 13.4 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$3.28t
* 30-day price volatility rose to 12.92% compared with 12.87% in the previous session and the average of 13.12% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 67.1850| 1.1| 24/5
Energy | 50.3172| 1.4| 24/15
Information Technology | 12.5654| 1.0| 10/4
Real Estate | 1.7572| 0.3| 14/8
Communication Services | 1.0118| 0.1| 4/2
Health Care | 0.3697| 0.4| 4/3
Consumer Discretionary | -2.0989| -0.3| 10/5
Utilities | -4.1537| -0.5| 3/13
Industrials | -7.2685| -0.3| 17/9
Consumer Staples | -8.8689| -1.1| 5/6
Materials | -9.9230| -0.4| 20/29
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
RBC | 20.3800| 1.6| 97.3| 6.5
Suncor Energy | 16.2000| 3.9| 95.0| 7.3
Cenovus Energy | 11.8300| 4.8| 66.9| 2.2
Agnico Eagle Mines | -4.4980| -1.8| 75.2| 8.1
Franco-Nevada | -6.5100| -2.4| -17.4| 6.8
Couche-Tard | -7.2200| -2.2| 12.8| 2.4
US
By Rita Nazareth
(Bloomberg) — Tech mega caps powered a stock-market rebound, tempering data suggesting that while the Federal Reserve still has a path to a soft landing, the risk of a recession this year is very much alive.
The S&P 500 closed at its highest since early December.
Tesla Inc. topped the $500 billion mark, leading gains in the Nasdaq 100 as Elon Musk teased potential for the carmaker to produce 2 million vehicles in 2023.
In late trading, chipmaker Intel Corp. tumbled on a bleak forecast.
US gross domestic product expanded at a faster-than-estimated pace into the end of 2022, but there were signs of slowing underlying demand as the steepest rate hikes in decades threaten growth.
The Fed is expected to boost rates by 25 basis points next week amid bets the central bank is approaching the end of its tightening cycle.
Yet officials are signaling that rates will stay high through the rest of this year.
The economy continues to be very resilient in the face of rate increases, but plenty of risks lie ahead, so “we wouldn’t be so quick to blow the all clear,” said Chris Zaccarelli at Independent Advisor Alliance.
“That said, this year’s stock-market rally is impressive and shouldn’t be ignored,” the firm’s chief investment officer added. “Unfortunately, the Fed is likely to start talking down the market again, as early as next week, so prepare for
volatility. We may be in the eye of the hurricane and not completely out of the woods yet.”
To Chris Gaffney, president of world markets at TIAA Bank, the recent data show the Fed is doing a good job, “but there’s more work to be done.”
A team led by Deutsche Bank AG’s Binky Chadha is maintaining its view that the S&P 500 can rise to 4,500 by the end of the first quarter, about 11% above Thursday’s close, before sliding amid an economic contraction.
The benchmark is headed for its best January since 2019.
However, it seems like many investors still don’t have the appetite to chase the rally.
Some 35% of clients in a recent JPMorgan Chase & Co. survey said they plan to add to stock holdings in the coming weeks.
That’s a hair away from a 33% reading in late November that marked an all-time low.
Investors fretting about the prospects for global earnings growth may want to brace for a long slog this year, and stiff headwinds to equities as a result.
Analysts’ estimates for 2023 profits continue to fall, with major regions showing negative revision momentum, according to research from Bloomberg Intelligence’s Gina Martin Adams and Gillian Wolff.
In the US, for example, sell-side analysts have lowered projections by more than half since September, while the outlook for emerging markets has slumped even more.

Corporate Highlights:
* Visa Inc. and Mastercard Inc. saw purchase volumes on their cards climb less than expected in the final three months of the year.
* Hasbro Inc., one of the world’s largest toymakers, said it would cut jobs after a disappointing holiday shopping season.
* Bed Bath & Beyond Inc. said it received a default notice from JPMorgan Chase & Co. after it failed to prepay an over advance and satisfy certain creditor protections.
* American Airlines Group Inc. expects profit this year to exceed estimates following a slow start.
* Southwest Airlines Co.’s operations meltdown last month will lead to a first-quarter loss.
* Comcast Corp. topped Wall Street profit estimates in the fourth quarter despite continuing to lose customers in its cable and broadband businesses.
Meantime, Thursday’s auction of seven-year Treasury notes ensured that January will be one of the best months ever for US government debt auctions.
The high demand reflects investor wagers that the Fed is nearing the end of its rate hikes as inflation comes down from its peak.
Traders also continued to keep an eye on the latest geopolitical developments.
The International Monetary Fund is exploring a multiyear aid package for Ukraine worth as much as $16 billion to help cover the country’s needs and provide a catalyst for more international funding while Kyiv tries to repel Russian forces, according to people familiar with the matter.
Key events:
* American Express, Charter Communications, Chevron, HCA Healthcare to report results Friday
* US personal income/spending, PCE deflator, University of Michigan consumer sentiment, pending home sales, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 2%
* The Dow Jones Industrial Average rose 0.6%
* The Stoxx Europe 600 rose 0.4%
* The MSCI World index rose 0.9%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.2% to $1.0891
* The British pound was little changed at $1.2412
* The Japanese yen fell 0.5% to 130.23 per dollar
Cryptocurrencies
* Bitcoin fell 2.1% to $23,112.34
* Ether fell 0.6% to $1,608.75
Bonds
* The yield on 10-year Treasuries advanced five basis points to 3.49%
* Germany’s 10-year yield advanced six basis points to 2.22%
* Britain’s 10-year yield advanced seven basis points to 3.32%
Commodities
* West Texas Intermediate crude rose 1.2% to $81.10 a barrel
* Gold futures fell 0.6% to $1,946.90 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cecile Gutscher, Sujata Rao, Isabelle Lee, Vildana Hajric and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

A great many people think they are thinking when they are merely rearranging their prejudices. –William James, 1845-1910.

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: Burns Night, Scotland, England, Newfoundland.  The poet, Robert Burns, was born January 25, 1759.

O my Luve is like a red, red rose
That’s newly sprung in June;
O my Luve is like the melody
That’s sweetly played in tune.

So fair art thou, my bonnie lass,
So deep in luve am I;
And I will luve thee still, my dear,
Till a’ the seas gang dry.

Till a’ the seas gang dry, my dear,
And the rocks melt wi’ the sun;
I will love thee still, my dear,
While the sands o’ life shall run.

And fare thee weel, my only luve!
And fare thee weel awhile!
And I will come again, my luve,
Though it were ten thousand mile.
-Robert Burns.

On Jan. 25, 1915, the inventor of the telephone, Alexander Graham Bell, inaugurated U.S. transcontinental telephone service.  Go to article » 
1924: the Winter Olympics opens in Chamonix, in the French Alps, inaugurating the Winter Olympic Games.
1984: McIntosh computer debuts.

Virginia Woolf, writer, b. 1882.
W. Somerset Maugham, writer, b. 1874.

The Doomsday Clock reveals how close we are to total annihilation.  This clock attempts to gauge how close humanity is to destroying the world. Yes, it sounds very grim… but it’s actually helping to encourage public engagement in difficult scientific topics.

Doomsday clock advances to 90 seconds to midnight – the closest to apocalypse it’s ever been: The Doomsday Clock, created 76 years ago by atomic scientists to warn against a human-made apocalypse, has moved to 90 seconds to midnight.  Russia’s ongoing invasion of Ukraine, the climate crisis, and biological threats such as the unchecked spread of COVID-19 were the leading reasons given by the Bulletin of the Atomic Scientists (BAS) for setting the hands of the clock closer to human extinction than they have ever been before.  Full Story: Live Science (1/24)

South Korea’s lunar orbiter unveils jaw-dropping images of Earth and the moon:  After orbiting the moon for just over a month, the Korean Pathfinder Lunar Orbiter (KPLO) is now sending back breathtaking images of Earth’s rocky neighbor — and our planet too.  The images, which were posted to the Korean Aerospace Research Institute (KARI) website, show a variety of lunar landscapes, including two jaw-dropping black-and-white images of an enormous Earth rising over the moon’s crater-studded horizon, and a time-lapse image of the moon’s orbit around Earth taken over several hours. Full Story: Live Science (1/24)

The James Webb Telescope detected the coldest ice in the known universe – and it contains the building blocks of life:  Scientists using the James Webb Space Telescope (JWST) have observed and measured the coldest ice in the deepest reaches of an interstellar molecular cloud to date.  The frozen molecules measured minus 440 degrees Fahrenheit (minus 263 degrees Celsius), according to new research published Jan. 23 in the journal Nature Astronomy.  Full Story: Live Science (1/24)

‘Replica’ sword is really 3,000 years old and may have been used in battle:  A “replica” sword that has been part of the collection at the Field Museum in Chicago for nearly a century is actually a 3,000-year-old artifact from the Bronze Age.  Curators made the shocking discovery while preparing for an upcoming exhibition called “First Kings of Europe.”  Full Story: Live Science (1/24)

Lake Michigan is home to a second Stonehenge.

PHOTOS OF THE DAY

​​​​​​​Somerset, UK
A robin looks at the camera as it perches on a car wing mirror
Photograph: Ben Birchall/PA Media

‘There really is nothing like this’: East Anglia’s fen skaters – in pictures
Harry Hall: ‘During the winter of 2022, I began reading about fen-skating, which dates back to the medieval period when farmers would skate on sharpened old animal bones. After subscribing to weather alerts for obscure corners of East Anglia, I made many trips to fen-skating “hotspots” – only to find thin or melted ice, rain, flooded roads, no sign of the wonky telegraph pole (meeting point), no skaters and darkness’

Paris, France
On Aura Tout Vu, founded by the design duo Livia Stoianova and Yassen Samouilov, presents its Haute Couture Spring Summer 2023 show, at Paris fashion week
Photograph: Victor Boyko/Getty Images
Market Closes for January 25^th, 2023

Market Index	Close	Change
Dow Jones	33743.84	+9.88
		+0.03%
S&P 500	4016.22	-0.73
		-0.02%
NASDAQ	11313.36	-20.91
		-0.18%
TSX	20599.60	-29.95
		-0.15%

International Markets

Market Index	Close	Change
NIKKEI	27395.01	+95.82
		+0.35%
HANG SENG	Market Closed	N.A.
SENSEX	60205.06	-773.69
		-1.27%
FTSE 100*	7744.87	-12.49
		-0.16%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.800		2.849
CND. 30 Year Bond		2.912		2.968
U.S.    10 Year Bond		3.4416		3.4527
U.S. 30 Year Bond		3.5937		3.6011

Currencies

BOC Close	Today	Previous
Canadian $	0.7471	0.7479
US $	1.3386	1.3371
Euro Rate 1 Euro=		Inverse
Canadian $	1.4613	0.6843
US  $	1.0917	0.9160

Commodities

Gold	Close	Previous
London Gold Fix	1920.75	1914.85
Oil
WTI Crude Future	79.85	79.78

Market Commentary:
On this day in 1853, basic financial disclosure became mandatory for all companies seeking to list their stock for trading on the New York Stock & Exchange Board.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.1%, or 29.95 to 20,599.60 in Toronto.
Today, industrials stocks led the market lower, as 5 of 11 sectors lost; 116 of 236 shares fell, while 116 rose.
Canadian National Railway Co. contributed the most to the index decline, decreasing 4.7%.
Advantage Energy Ltd. had the largest drop, falling 5.3%.
Insights
* This month, the index rose 6.3%
* The index was little changed in the past 52 weeks. The MSCI ACcAmericas Index lost 8.2% in the same period
* The S&P/TSX Composite is 7.3% below its 52-week high on April 5, 2022 and 15.3% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 1.1% 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
* 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$3.28t
* 30-day price volatility little changed to 12.87% compared with 12.87% in the previous session and the average of 13.13% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | -59.4226| -2.2| 9/17
Energy | -41.5910| -1.1| 14/25
Utilities | -4.4542| -0.5| 2/14
Real Estate | -0.3873| -0.1| 5/17
Consumer Staples | -0.3275| 0.0| 6/5
Health Care | 0.0100| 0.0| 3/3
Consumer Discretionary | 0.2587| 0.0| 10/5
Communication Services | 1.8676| 0.2| 4/2
Financials | 4.2453| 0.1| 19/9
Materials | 27.2426| 1.1| 40/9
Information Technology | 42.6181| 3.4| 4/10
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian National | -32.5100| -4.7| 212.2| -1.7
Canadian Pacific | -25.5600| -3.7| 81.4| 2.0
Enbridge | -19.1500| -2.5| 69.6| 2.4
Bank of Nova Scotia| 5.6750| 1.0| -23.5| 5.7
Barrick Gold | 6.4650| 2.0| -29.9| 14.1
Shopify | 51.3500| 11.0| 110.6| 34.7
US
By Rita Nazareth
(Bloomberg) — Wall Street shook off most of the losses driven by a dire sales warning from Microsoft Corp., with stock traders shifting their focus to Tesla Inc.’s earnings report after the closing bell.
The S&P 500 almost erased a slide that approached 2% earlier in the session.
In late trading, Elon Musk’s electric-vehicle giant whipsawed after beating estimates on profit and sales, but missing on cash flow.
“The push-and-pull of bulls and bears continues, with technology earnings the latest data point to energize the bears, though the positive momentum, continued heavy skepticism of the rally and the attractiveness of several areas of the markets could break equities out to the upside,” said Mark Hackett, chief of investment research at Nationwide.
The S&P 500 is headed for the best January since 2019 driven by expectations that the Federal Reserve will moderate its rate hikes.
The equity rebound came just as the economy is headed for a downturn — setting the stage for a selloff, JPMorgan Chase & Co.’s Marko Kolanovic told CNBC.
Investors should use any rallies to reduce exposure to the equity market, according to Richard Saperstein at Treasury Partners.
Slower economic growth caused by the Fed’s tightening and its impact on corporate earnings will likely be priced into stocks over the next several months, he added.
“We have not been impressed with the quality of earnings in recent weeks. Looking forward, margins remain at risk as inflation softens and economic growth slows,” Saperstein noted.
In other corporate news, AT&T Inc. rallied after beating analysts’ profit estimates even as the company’s 2023 outlook came up short of Wall Street targets.
Boeing Co. reported a surprise loss to end 2022 — its sixth straight money-losing quarter — as higher costs slowed the plane maker’s recovery even though a late flurry of jet deliveries drove a surge in cash.
The New York Stock Exchange said a manual error caused wild price swings and trading halts for hundreds of company stocks when the market opened on Tuesday.
The root cause of the issue, which the exchange operator says has been resolved, was tied to the company’s so-called “disaster recovery configuration” at the start of the day.
Over 1,300 trades and some 84 stocks were impacted and marked as “aberrant,” NYSE said in an updated statement on its website.
Elsewhere, the loonie fell as the Bank of Canada raised rates for an eighth consecutive and potentially final time — saying it expects to move to the sidelines and weigh the impact of its rapid tightening.
Traders also kept an eye on the latest geopolitical developments.
The US will send Ukraine 31 of its M1 Abrams battle tanks, adding to a German commitment to supply some of its top-line armor and infusing the country with a major new capability as it looks to pry Russian forces from the east.
Key events:
* Earnings for the week include: American Airlines, Blackstone, Comcast, Diageo, Intel, LVMH Moet Hennessy Louis Vuitton, Mastercard, SAP, Southwest Airlines, Visa (Thursday); American Express, Charter Communications, Chevron, HCA Healthcare (Friday)
* US fourth-quarter GDP, new home sales, initial jobless claims, Thursday
* US personal income/spending, PCE deflator, University of Michigan consumer sentiment, pending home sales, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 fell 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.2% to $1.0913
* The British pound rose 0.5% to $1.2396
* The Japanese yen rose 0.4% to 129.60 per dollar
Cryptocurrencies
* Bitcoin rose 0.1% to $22,928.84
* Ether fell 1.3% to $1,578.92
Bonds
* The yield on 10-year Treasuries was little changed at 3.45%
* Germany’s 10-year yield was little changed at 2.16%
* Britain’s 10-year yield declined three basis points to 3.24%
Commodities
* West Texas Intermediate crude rose 0.5% to $80.56 a barrel
* Gold futures rose 0.6% to $1,963.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Peyton Forte, John McCorry, Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

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

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

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

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

Dear Friends,

Tangents:
January 24^th, 1908: The first Boy Scout troop is organized in England by Robert Baden-Powell.
1935: First canned beer debuted.
2008: French bank Société Generale announced it had uncovered a $7.14 billion fraud by a single futures trader. Go to article » 

Edith Wharton, b. 1862.

Oscar nominations are out—here are the big potential winners.

Stunning images capture the moment a green comet’s tail is blasted away by the sun:  A rare green comet passing through our solar system for the first time in 50,000 years received a warm welcome from the sun this week… perhaps too warm.  Images captured by Michael Jäger, an amateur astronomer based in Austria, reveal a huge spike of gas disconnecting from the comet’s tail and drifting off on the solar wind.  Full Story: Live Science (1/23)

3,600-year-old hoards may contain the earliest silver currency in Israel and Gaza:  Ancient silver hoards from Israel and Gaza, which contain not coins but irregularly cut pieces of the precious metal, maybe the earliest known silver currency in the region and likely came from the faraway regions of what is now Turkey and Europe, a new study suggests.  These newly analyzed hoards date to about 1550 B.C., hundreds of years earlier than other discoveries of silver currency in what is now Israel and Gaza, the researchers said. Full Story: Live Science (1/23)

Incredible CT scans of ‘Golden Boy’ mummy from ancient Egypt reveal 49 hidden amulets:  Incredibly detailed computed tomography (CT scans) of the so-called “Golden Boy,” mummy from ancient Egypt have revealed a hidden trove of 49 amulets, many of which were made of gold.  The young mummy earned its nickname because of the dazzling display of wealth, which included a gilded head mask found in the mummy’s sarcophagus.
Full Story: Live Science (1/24)

Don’t say ‘mummy’.  Here’s why some museums are rebranding ancient Egyptian remains,

PHOTOS OF THE DAY

Paris, France
Models walk the runway during the Chanel haute couture spring/summer 2023 show as part of Paris fashion week
Photograph: François Durand/Getty Images

Bristol, UK
Deer graze during sunrise at Ashton Court Estate
Photograph: Ben Birchall/PA

Trabzon, Turkey
Sumela Monastery is illuminated at night during the winter season in Trabzon. The monastery, which is included in Unesco’s temporary list of world heritage sites, was reopened for religious practice in 2010 after an 88-year hiatus
Photograph: Anadolu Agency/Getty Images
Market Closes for January 24^th, 2023

Market Index	Close	Change
Dow Jones	33733.96	+104.40
		+0.31%
S&P 500	4016.95	-2.86
		-0.07%
NASDAQ	11334.27	-30.14
		-0.27%
TSX	20629.55	-2.03
		-0.01%

International Markets

Market Index	Close	Change
NIKKEI	27299.19	+393.15
		+1.46%
HANG SENG	Market Closed	N.A.
SENSEX	60978.75	+37.08
		+0.06%
FTSE 100*	7757.36	-27.31
		-0.35%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.849		2.881
CND. 30 Year Bond		2.968		2.994
U.S.    10 Year Bond		3.4527		3.5191
U.S. 30 Year Bond		3.6011		3.6863

Currencies

BOC Close	Today	Previous
Canadian $	0.7479	0.7481
US $	1.3371	1.3367
Euro Rate 1 Euro=		Inverse
Canadian $	1.4554	0.6871
US  $	1.0885	0.9187

Commodities

Gold	Close	Previous
London Gold Fix	1914.85	1924.90
Oil
WTI Crude Future	79.78	81.27

Market Commentary:
On this day in 1848, gold was discovered in the river at Sutter’s Mill in Coloma, Calif. Thus began the California Gold Rush, an economic boom⁠ that attracted an estimated 300,000 people to the then sparsely populated state⁠.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite declined slightly to 20,629.55 in Toronto.
The move follows the previous session’s increase of 0.6%.
Shopify Inc. contributed the most to the index decline, decreasing 3.1%.
Magna International Inc. had the largest drop, falling 7.2%.
Today, 110 of 236 shares fell, while 121 rose; 5 of 11 sectors were lower, led by energy stocks.
Insights
* This month, the index rose 6.4%
* The index advanced 0.3% in the past 52 weeks. The MSCI AC Americas Index lost 9.3% in the same period
* The S&P/TSX Composite is 7.1% below its 52-week high on April 5, 2022 and 15.4% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.8% in the past 5 days and rose 5.8% 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 13.4 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$3.28t
* 30-day price volatility little changed to 12.87% compared with 12.88% in the previous session and the average of 13.14% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -34.2853| -0.9| 6/32
Information Technology | -17.3475| -1.4| 5/9
Consumer Discretionary | -5.4800| -0.7| 10/4
Real Estate | -0.9136| -0.2| 7/14
Utilities | -0.0969| 0.0| 6/10
Health Care | 0.1790| 0.2| 3/3
Financials | 5.4750| 0.1| 14/15
Consumer Staples | 7.9564| 1.0| 9/2
Communication Services | 8.9610| 0.9| 5/1
Industrials | 9.2035| 0.3| 17/9
Materials | 24.3251| 1.0| 39/11
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Shopify | -14.9500| -3.1| 7.7| 21.4
Magna Intl | -11.6000| -7.2| 177.0| 6.8
Enbridge | -6.4300| -0.8| 108.3| 5.0
Agnico Eagle Mines | 3.9010| 1.6| -18.0| 9.0
Franco-Nevada | 4.3140| 1.7| 10.9| 7.4
Rogers Communications| 4.5970| 2.9| 41.2| 4.9
US
By Rita Nazareth
(Bloomberg) — Wall Street saw some buyer fatigue after a solid equity rally, with investors scouring a batch of earnings for clues on the outlook for Corporate America amid mounting fears about a recession.
The S&P 500 halted a two-day advance.
Just before the start of the tech earnings season, a few other bellwethers reported their numbers.
The Dow Jones Transportation Average fell on disappointing results from Union Pacific Corp. 3M Co., the maker of Post-it notes, forecast profit that trailed estimates and said it plans to cut jobs. Homebuilder D.R. Horton Inc. beat
projections.
A combination of mixed earnings and economic numbers is making investors hesitant to take on more risk particularly after an equity surge that drove the S&P 500 up more than 10% from its mid-October low.
US business activity contracted for a seventh month, though at a more moderate pace, while a measure of input prices firmed in a sign of lingering inflationary pressures.
Corporate Highlights:
* The US Justice Department and eight states sued Alphabet Inc.’s Google, calling for the break up of the search giant’s ad-technology business over alleged illegal monopolization of the digital advertising market.
* General Electric Co. continues to grapple with lingering issues in its renewable energy business, even as the slimmed-down manufacturer says strong demand for air travel will help boost overall profits this year.
* Johnson & Johnson guided to stronger earnings for 2023 than analysts were expecting after a year in which the pharma division suffered because of waning demand for its unpopular Covid-19 shot.
* Halliburton Co. boosted its dividend 33% as the world’s biggest provider of fracking services follows its oil-and-gas clients by expanding shareholder returns amid tight global supplies for crude.
* Verizon Communications Inc.’s profit outlook trailed Wall Street estimates in a sign that the consumer wireless business continues to weigh down performance.
The popping of the bubble in US stocks is far from over and investors shouldn’t get too excited about a strong start to the year for the market, warns Jeremy Grantham, the co-founder and long-term investment strategist of GMO.
“The range of problems is greater than it usually is — maybe as great as I’ve ever seen,” Grantham added.
A strong start to the year for US tech stocks is facing a pair of technical roadblocks.
The recent Nasdaq 100 rally has left the gauge just below the 23.6% Fibonacci retracement of its 2021 record high and September low.
That level acted as resistance three different times late last year, with rallies fading just above it each time.
Even if it does manage a successful break, it will then face a test of its 200-day moving average, a line it hasn’t traded above in nearly a year.
The New York Stock Exchange said some trades will be declared “null and void” after determining a “system issue” resulted in a group of securities commencing trading without an opening auction price.
The exchange said that the trades will be reviewed as “clearly erroneous” under NYSE rules.
That applies to trades in certain securities that did not conduct an opening auction, that occurred after the 9:30 a.m. bell but before certain pricing levels were set, and were executed further from the reference price, NYSE said in an updated statement on its website.
Now with the Federal Reserve’s Feb. 1 rate decision about a week away, traders in the options market are contemplating a scenario in which the rate hike it’s expected to deliver ends up being the last one of the tightening cycle.
The swap market is pricing around 48 basis points of rate hikes over the next two policy meetings.
That implies a small chance — approximately 8% — that if the Fed raises its benchmark rate by a quarter point next week, it could be the central bank’s final move in a tightening cycle that has marked the most aggressive action against inflation in several decades.
“It’s almost like people are trying to project forward toward the end the Fed tightening policy and trying to find a bottom here and a new bull-market rally,” said Jerry Braakman, chief investment officer of First American Trust. “But that’s in light of deteriorating economic statistics and I think that’s a little premature.”
Key events this week:
* Earnings for the week include: Abbott Laboratories, ASML Holding, AT&T, Boeing, International Business Machines, NextEraEnergy, Tesla (Wednesday); American Airlines, Blackstone, Comcast, Diageo, Intel, LVMH Moet Hennessy Louis Vuitton, Mastercard, SAP, Southwest Airlines, Visa (Thursday); American Express, Charter Communications, Chevron, HCA Healthcare (Friday)
* US MBA mortgage applications, Philadelphia Fed non-manufacturing activity, Wednesday
* US fourth-quarter GDP, new home sales, initial jobless claims, Thursday
* US personal income/spending, PCE deflator, University of Michigan consumer sentiment, pending home sales, Friday

* Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 fell 0.2%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0882
* The British pound fell 0.4% to $1.2335
* The Japanese yen rose 0.4% to 130.17 per dollar
Cryptocurrencies
* Bitcoin was little changed at $23,018.84
* Ether fell 1% to $1,615.35
Bonds
* The yield on 10-year Treasuries declined five basis points to 3.46%
* Germany’s 10-year yield declined five basis points to 2.15%
* Britain’s 10-year yield declined eight basis points to 3.28%
Commodities
* West Texas Intermediate crude fell 1.9% to $80.11 a barrel
* Gold futures rose 0.5% to $1,955.40 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matt Turner, Peyton Forte, Isabelle Lee, Vildana Hajric, Emily Graffeo and Felice Maranz.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

It is usually the reply that causes the fight. –Japanese Proverb.

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.
January 23, 1997: Madeleine Albright becomes the first woman to serve as United States Secretary of State.
January 23, 1989:  Surrealist painter Salvador Dali died in his native Spain at age 84. Go to article » 

Edouard Manet, b.1832.

Read your Chinese zodiac fortune for the Year of the Rabbit:  During Lunar New Year, many people take a look at these Chinese Zodiac predictions to see what may lie ahead in the coming months. Who knows, maybe yours will be oddly accurate!

Watch this family erupt with excitement as they spot son lost at sea.  A 21-year-old free diver was swept away by a current in Key West, Florida, prompting a critical rescue mission. See the exciting moment he was found.

Radio signal from 8 billion light-years away could reveal the secrets of the universe’s ‘dark age’:  By using warped space-time as a magnifying glass, astronomers have picked up the most distant signal of its kind from a remote galaxy, and it could blow open a window into how our universe formed.   The record-breaking radio frequency signal, picked up by the Giant Metrewave Radio Telescope (GMRT) in India, came from the galaxy SDSSJ0826+5630, located 8.8 billion light-years from Earth, meaning the signal was emitted when the universe was roughly a third of its current age.  Full Story: Live Science (1/20)

Royal tomb discovered near Luxor dates to time when female pharaoh co-ruled ancient Egypt:  Archaeologists in Egypt have discovered a 3,500-year-old royal tomb near Luxor. The tomb was likely constructed at a time when Hatshepsut, a female pharaoh, co-ruled ancient Egypt.   “Partial inscriptions and ceramic evidence suggest this was constructed during the joint-reign of Thutmose III and Hatshepsut,” archaeologists said in a statement.
Full Story: Live Science (1/20)
PHOTOS OF THE DAY

New Delhi, India
Border security force soldiers ride camels during the full dress rehearsal for the upcoming republic day parade
Photograph: Money Sharma/AFP/Getty Images

Zakopane, Poland
Visitors try to find the exit from the Snowlandia winter theme park’s labyrinth
Photograph: Anadolu Agency/Getty Images

Hawaii, US
Mark Healy rides a wave during the Eddie Aikau Big Wave Invitational surfing contest at Waimea Bay on the North Shore of Oahu in Hawaii
Photograph: Brian Bielmann/AFP/Getty Images
Market Closes for January 23^rd, 2023

Market Index	Close	Change
Dow Jones	33629.56	+254.07
		+0.76%
S&P 500	4019.81	+47.20
		+1.19%
NASDAQ	11364.41	+223.98
		+2.01%
TSX	20631.58	+128.37
		+0.63%

International Markets

Market Index	Close	Change
NIKKEI	26906.04	+352.51
		+1.33%
HANG SENG	Market Closed	N.A.
SENSEX	60941.67	+319.90
		+0.53%
FTSE 100*	7784.67	+14.08
		+0.18%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.881		2.841
CND. 30 Year Bond		2.994		2.935
U.S.    10 Year Bond		3.5191		3.4787
U.S. 30 Year Bond		3.6863		3.6547

Currencies

BOC Close	Today	Previous
Canadian $	0.7481	0.7475
US $	1.3367	1.3377
Euro Rate 1 Euro=		Inverse
Canadian $	1.4531	0.6882
US  $	1.0871	0.9199

Commodities

Gold	Close	Previous
London Gold Fix	1924.90	1918.60
Oil
WTI Crude Future	81.27	81.31

Market Commentary:
On this day in 1987: Daily trading volume on the New York Stock Exchange exceeded 300 million for the first time, with 302.4 million shares changing hands
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.6%, or 128.37 to 20,631.58 in Toronto.
The index advanced to the highest closing level since June 8.
Today, information technology stocks led the market higher, as 9 of 11 sectors gained; 159 of 236 shares rose, while 75 fell.
Shopify Inc. contributed the most to the index gain, increasing 8.8%.
Ballard Power Systems Inc. had the largest increase, rising 9.7%.
Insights
* This month, the index rose 6.4%
* The index was little changed in the past 52 weeks. The MSCI AC Americas Index lost 9% in the same period
* The S&P/TSX Composite is 7.1% below its 52-week high on April 5, 2022 and 15.4% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 1.2% in the past 5 days and rose 5.8% 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 13.3 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$3.26t
* 30-day price volatility rose to 12.88% compared with 12.79% in the previous session and the average of 13.10% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 46.5614| 3.8| 12/2
Financials | 32.1919| 0.5| 21/8
Energy | 19.8112| 0.5| 28/11
Industrials | 13.2468| 0.5| 18/8
Consumer Discretionary | 7.4664| 1.0| 12/2
Real Estate | 6.5707| 1.2| 22/1
Utilities | 5.7078| 0.6| 9/7
Materials | 2.2703| 0.1| 21/28
Health Care | 1.8527| 2.3| 7/0
Consumer Staples | -1.6338| -0.2| 6/5
Communication Services | -5.6899| -0.6| 3/3
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 39.0200| 8.8| 32.2| 25.3
Brookfield Corp | 9.9580| 2.1| -13.8| 16.3
Suncor Energy | 8.0090| 2.0| 18.4| 4.9
Franco-Nevada | -2.2490| -0.9| 31.0| 5.6
Couche-Tard | -2.4780| -0.7| 4.3| 3.7
BCE | -3.9030| -1.0| 3.5| 4.0
US
By Rita Nazareth
(Bloomberg) — Tech stocks led gains on Wall Street, with earnings for the most-influential segment of the US equity market about to get underway in a test of the S&P 500’s 12% surge from its October low.
Marquee names like Microsoft Corp. and Intel Corp. are set to report results that will help shape the fate of a sector that last year faced a reckoning amid higher rates.
While some traders are bracing for the group’s worst earnings slump since 2016, pessimism has recently faded as tech firms focus on cost cuts and inflation shows signs of easing — with the Nasdaq 100 having its best two-day rally since November.
The latest notable company to announce job cuts to lower expenses was Spotify Technology SA, which climbed on plans to slash about 6% of its employees.
Interestingly enough, despite the positive reaction to the industry’s cost-saving measures, not everyone is convinced that’s a good sign.
Bank of America Corp. strategists including Savita Subramanian note that could herald waning tech demand.
It’s also worth noting that among all tech groups, chipmakers were by far the best performers Monday thanks to a call from Barclays Plc upgrading Advanced Micro Devices Inc. and Qualcomm Inc., which spurred a 5% jump in the Philadelphia Semiconductor Index.
The S&P 500 crossed its key 4,000 mark — seen by several technical analysts as a make-or-break level that could define the gauge’s direction.
“We’re likely to find out soon whether this latest run is just another one of many false alarms or if it’s really ‘the one’,” according to strategists at Bespoke Investment Group.  “One thing bulls have working in their favor is that following the last unsuccessful test in mid-December, the market didn’t go on to make new lows.”
Now one aspect to keep in mind is that stocks aren’t necessarily cheap at this stage.
In fact, the S&P 500 may look expensive compared with historical levels given that earnings estimates have been falling for a while.
If the US equity benchmark in fact bottomed on Oct. 12, that would be one of highest valuation troughs ever, noted David Bahnsen, chief investment officer of his namesake wealth management firm.
The S&P 500 was trading around 17 times relative to earnings at that time — and bear-market bottom multiples are historically much lower than that, he added.
“Investors should not assume that the easy times in the market are coming back,” Bahnsen said. “We expect enhanced volatility and a focus on cash flow and quality for the foreseeable future.”
To Matt Maley at Miller Tabak + Co., the S&P 500’s current valuations don’t leave “a lot of leeway for disappointments.”
And with higher interest rates, it’s going to be tough for the markets to keep rallying should earnings projections for 2023 come down further, he added.
Early fourth-quarter results show that the companies in the US equity benchmark are on track to miss expectations by 1% after analysts lowered their projections, BofA’s Subramanian wrote.
The recent weakening of economic data alongside the anticipated decline in earnings expectations and weak 2023 guidance are pointing to markets that are likely to move lower, according to JPMorgan Chase & Co. strategists led by Marko Kolanovic.  “A recession is currently not priced into equity markets,”  they added.
Optimism around a less hawkish Federal Reserve, China reopening and a weaker dollar is already priced in, according to Morgan Stanley’s strategist Michael Wilson.
Nevertheless, he does expect a stock rally in 2024 following a challenging 2023 as the US economy suffers through an earnings recession.
“Markets have leapt ahead this year, driven by China’s reopening, falling energy prices and slowing inflation,” strategists at BlackRock Investment Institute wrote. “This has spurred hopes of a soft economic landing, plummeting inflation and interest rate cuts. We see markets vulnerable to negative surprises – and unprepared for recession.”
As the Fed enters the blackout period ahead of its Jan. 31-Feb. 1 meeting, markets have priced in a smaller 25-basis-point hike.
Even as several officials say rates must peak above 5% and stay higher for longer, traders remain skeptical.
They still don’t believe policymakers will go above 5%, and see the Fed cutting rates aggressively by the end of the year, according to Anna Wong at Bloomberg Economics.
Meantime, Treasury Secretary Janet Yellen said she’s encouraged by progress on inflation, with energy prices and supply-chain issues easing across the globe even as the US labor market remains strong.
“Investors should be careful to temper their expectations for premature rate cuts, as the Fed will likely need to keep a restrictive footing on monetary policy throughout the year to fight inflation,” said Jason Pride, chief investment officer of private wealth at Glenmede.
Treasury yields rose and the dollar was little changed.
Key events this week:
* PMIs for US, euro area, UK, Japan, Tuesday
* Richmond Fed Manufacturing, Tuesday
* ECB President Christine Lagarde delivers a video message on “the euro as a guarantee of resilience,” Tuesday
* US MBA mortgage applications, Philadelphia Fed non-manufacturing activity, Wednesday
* US fourth-quarter GDP, new home sales, initial jobless claims, Thursday
* US personal income/spending, PCE deflator, University of Michigan consumer sentiment, pending home sales, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.2%
* The Dow Jones Industrial Average rose 0.8%
* The MSCI World index rose 1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.1% to $1.0867
* The British pound fell 0.2% to $1.2372
* The Japanese yen fell 0.8% to 130.69 per dollar
Cryptocurrencies
* Bitcoin rose 1.9% to $23,030.2
* Ether rose 0.4% to $1,635.31
Bonds
* The yield on 10-year Treasuries advanced five basis points to 3.52%
* Germany’s 10-year yield advanced three basis points to 2.21%
* Britain’s 10-year yield declined two basis points to 3.36%
Commodities
* West Texas Intermediate crude was little changed
* Gold futures rose 0.2% to $1,948.60 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Isabelle Lee and Peyton Forte.

Have a  lovely evening.

Be magnificent!
As ever,

Carolann

If you want your children to turn out well, spend twice as much time with them, and half as much money. –Abigail Van Buren, 1918-2013.

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.

On Jan. 20, 1981, Iran released 52 Americans held hostage for 444 days, minutes after the presidency had passed from Jimmy Carter to Ronald Reagan.  Hmmm… Go to article » 
January 20, 2021: Joe Biden is inaugurated as the 46^th President of the United States of America.  At 78, he becomes the oldest person ever inaugurated.  Kamala Harris becomes the first female Vice President of the United States.

Saturn and Venus will “kiss” this Sunday. (h/t Elaine He)

Dolphins were spotted in the Bronx River this week, according to the New York City Department of Parks & Recreation.

A giant cane toad weighing 2.7 kilograms has been discovered in an Australian rainforest by park rangers who’ve named it Toadzilla.

Instagram rolls out ‘quiet mode’ for when users want to focus.  The new feature applies to all users, but it appears to be geared toward younger adults to help them improve focus and set boundaries with followers.

Uber wants its future to have face-to-face seats.  The ride-hailing company wants to add three-wheeled vehicles with face-to-face seats to its fleet.

Davos has it all, except the world’s most powerful person.
PHOTOS OF THE DAY

New York City, U.S.
A porter straightens a newly rediscovered portrait by Bronzino one of the leading artists of the Florentine Renaissance, at Sotheby’s auction house.
Photograph: Shannon Stapleton/Reuters

Ballesteros, Argentina
A corn field displays an image of the face of Argentine football star Lionel Messi. The design, by agricultural engineer Carlos Faricelli, was made using precision planting, and was shared with several agricultural producers, who planted corn in this way to pay tribute to the footballer
Photograph: Nicolas Aguilera/AFP/Getty Images

London, UK
People admire Floating Earth, a light installation by Luke Jerram, during the Canary Wharf winter light festival
Photograph: Anadolu Agency/Getty Images

Jagiroad, India
Tiwa people participate in community fishing during the Jonbeel festival. Tribal communities such as Tiwa, Karbi, Khasi and Jaintia participate in the festival, which signifies harmony and brotherhood among various tribes and communities
Photograph: Anupam Nath/AP
Market Closes for January 20^th, 2023

Market Index	Close	Change
Dow Jones	33375.49	+330.93
		+1.00%
S&P 500	3972.61	+73.76
		+1.89%
NASDAQ	11140.43	+288.16
		+2.66%
TSX	20503.21	+161.77
		+0.80%

International Markets

Market Index	Close	Change
NIKKEI	26553.53	+148.30
		+0.56%
HANG SENG	22044.65	+393.67
		+1.82%
SENSEX	60621.77	-236.66
		-0.39%
FTSE 100*	7770.59	+23.30
		+0.30%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.841		2.749
CND. 30 Year Bond		2.935		2.851
U.S.    10 Year Bond		3.4787		3.3951
U.S. 30 Year Bond		3.6547		3.5694

Currencies

BOC Close	Today	Previous
Canadian $	0.7475	0.7426
US $	1.3377	1.3466
Euro Rate 1 Euro=		Inverse
Canadian $	1.4533	0.6881
US  $	1.0865	0.9204

Commodities

Gold	Close	Previous
London Gold Fix	1918.60	1920.70
Oil
WTI Crude Future	81.31	80.33

Market Commentary:
On this day in 1870: The first known female-owned U.S. stock brokerage is launched, as sisters Victoria Woodhull and Tennie Claflin open their Woodhull, Claflin & Co. at 44 Broad St. in Manhattan.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.8% at 20,503.21 in Toronto.
The move was the biggest since rising 0.9% on Jan. 12 and follows the previous session’s decrease of 0.2%.
Shopify Inc. contributed the most to the index gain, increasing 5.6%.
Interfor Corp. had the largest increase, rising 5.6%.
Today, 192 of 236 shares rose, while 40 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index rose 5.8%
* So far this week, the index rose 0.7%
* The index declined 2.6% in the past 52 weeks. The MSCI AC Americas Index lost 12% in the same period
* The S&P/TSX Composite is 7.7% below its 52-week high on April 5, 2022 and 14.7% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.5 on a trailing basis and 13.2 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$3.24t
* 30-day price volatility rose to 12.79% compared with 12.61% in the previous session and the average of 13.10% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 43.0330| 0.7| 27/2
Information Technology | 34.1450| 2.9| 12/1
Materials | 27.8366| 1.1| 38/11
Industrials | 22.2462| 0.8| 25/1
Energy | 17.5645| 0.5| 32/6
Communication Services | 7.2581| 0.7| 6/0
Consumer Discretionary | 6.9259| 0.9| 11/3
Real Estate | 4.0915| 0.8| 21/2
Health Care | 1.9404| 2.5| 7/0
Utilities | 1.7195| 0.2| 8/8
Consumer Staples | -4.9751| -0.6| 5/6
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 23.5800| 5.6| -7.8| 15.2
Nutrien | 10.0600| 2.7| -13.4| 6.7
Canadian Pacific | 7.8980| 1.2| -15.5| 5.0
Northland Power | -1.8710| -2.9| 203.3| 0.2
Suncor Energy | -3.7250| -0.9| -40.9| 2.9
Couche-Tard | -4.0950| -1.2| -2.6| 4.5
US
By Stephen Kirkland
(Bloomberg) — US stocks clawed back some of this week’s losses as a tech rally buoyed risk sentiment and comments by  Federal Reserve officials dialed back fears of overly aggressive policy moves.
The S&P 500 Index rose for the first time in four days, with all 11 sectors gaining.
While the broad benchmark remained down on the week, the biggest one-day gain in the tech-heavy Nasdaq 100 since November pushed it into the green for the period.
Google parent Alphabet Inc. gained after revealing a plan to cut 12,000 jobs.
Netflix Inc. surged after reporting stronger-than-expected subscriber numbers.
Benchmarks climbed to session highs on Friday after Fed Governor Christopher Waller said policy looks pretty close to sufficiently restrictive and he backed moderation in the size of rate increases.
Earlier, Philadelphia Fed President Patrick Harker repeated his view for more incremental steps in rate hikes, while Kansas City Fed chief Esther George said the economy can avoid a sharp downturn.
Equity markets rallied despite a push higher in Treasury yields, suggesting that the 60/40 portfolio model could be making a comeback.
Earlier this week, higher rates and hawkish comments from Fed and European Central Bank officials weighed on risk sentiment.

“It’s notable that yields are up today yet Nasdaq is outperforming,” said Jonathan Krinsky, chief market technician for BTIG. “While this could be perceived as a short-term positive, if we are shifting to a ‘bad news is bad’ narrative
where lower rates coincide with lower stocks, then it would make sense to see the inverse.”
Earnings have also been in focus.
Of the 55 S&P 500 companies that have reported results so far, about two-thirds have beaten analysts’ estimates, compared with the 80% positive surprise seen over the past several quarters.
“Fears of a recession seemed to be overriding a sort of optimism from some companies which have reported better-than-expected results,” said Fiona Cincotta, senior financial markets analyst at City Index. “There is this understanding that earnings are probably going to be weaker, but I think a lot of that’s being priced in.”
Oil rallied to the highest since mid-November, capping off its second straight week of gains on optimism over increased demand from China.
West Texas Intermediate rose to settle above $81 a barrel, posting a 1.8% weekly gain.
Here are some of the main market moves:
Stocks
* The S&P 500 rose 1.9% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.9%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 1.5%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.2% to $1.0856
* The British pound was little changed at $1.2394
* The Japanese yen fell 0.9% to 129.58 per dollar
Cryptocurrencies
* Bitcoin rose 6.4% to $22,286.92
* Ether rose 6.2% to $1,640.81
Bonds
* The yield on 10-year Treasuries advanced nine basis points to 3.48%
* Germany’s 10-year yield advanced 11 basis points to 2.18%
* Britain’s 10-year yield advanced 10 basis points to 3.38%
Commodities
* West Texas Intermediate crude rose 1.2% to $81.31 a barrel
* Gold futures rose 0.3% to $1,929.60 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson, Brett Miller, Rob Verdonck, Srinivasan Sivabalan, Isabelle Lee, Vildana Hajric and Peyton Forte.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

My idea of courtesy is this: It is the habit of respecting other people’s feelings under all circumstances; the habit of going out of one’s way
to help any less fortunate person whenever and wherever possible; and last, but by no means least,
the habit of controlling selfishness in all its forms. –Andrew Carnegie, 1835-1919.

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.
January 19, 1978: The last Volkswagen Beetle made in Germany leaves VW’s plant in Emden.  Beetle production continues inn Latin America until 2003.
On Jan. 19, 1937, millionaire Howard Hughes set a transcontinental air record by flying his monoplane from Los Angeles to Newark, N.J., in 7 hours, 28 minutes and 25 seconds. Go to article » 

‘You guys got a giant great white!’: Boy hooks catch of a lifetime.  A brave 12-year-old caught a great white shark while on a fishing trip with his family. Watch the video here.

Bidder pays $2.6 million for ticket to watch Ronaldo vs. Messi:  Cristiano Ronaldo and Lionel Messi are set to face off today in a highly anticipated match. Apparently, some people are paying millions for tickets.

Rare video shows giant sea creature off the coast of Japan.  A diver and his wife encountered a huge squid off the western coast of Japan. View the rare footage here.

Medieval pendant found in a garbage pit may hold the bones of a saint:  For 900 years, a corroded medieval pendant discovered in a trash heap in Germany has been hiding a religious treasure: tiny fragments of bone, possibly from the body of a saint, a new study has found.  And further studies might reveal which saint it was.  Full Story: Live Science (1/18)

World’s oldest runestone may contain the earliest example of writing in Scandinavia:  Archaeologists have unearthed the “world’s oldest runestone,” a squat block of sandstone with etchings scribbled across its flat surface.
The ancient stone, which archaeologists unearthed in Norway, could contain the earliest example of “words recorded in writing in Scandinavia.”  Full Story: Live Science (1/18)

Sister André, world’s oldest person, dies at 118: Sister André, a French nun who held the title of the world’s oldest person, died Jan. 17 at age 118 in Toulon, a city in southern France.  Sister André, a French nun who held the title of the world’s oldest person, died Jan. 17 at age 118 in Toulon, a city in southern France. Guinness World Records declared Sister André not only the world’s oldest person but also the oldest nun on record. (She earned the former title in April 2022, after the passing of Kane Tanaka, a 119-year-old Japanese woman.)  Full Story: Live Science (1/18)
The green comet is saying hello to Earth for the first time since the Ice Age.
PHOTOS OF THE DAY

London, UK
A water feature in Jubilee Park, Canary Wharf, at this year’s Winter Lights festival which features a trail of 22 immersive light installations
Photograph: Vuk Valcic/Zuma Press Wire/Rex/Shutterstock

Batu, Ethiopia
High priests dip crosses in the water as they pray on a lake during the celebration of the epiphany
Photograph: Amanuel Sileshi/AFP/Getty Images

Bursa, Turkey
A lenticular cloud is seen during sunrise from Gökmen aerospace training center
Photograph: Halit Mirahmetoglu/Anadolu Agency/Getty Images
Market Closes for January 19^th, 2023

Market Index	Close	Change
Dow Jones	33044.56	-252.40
		-0.76%
S&P 500	3898.85	-30.01
		-0.76%
NASDAQ	10852.27	-104.74
		-0.96%
TSX	20341.44	-34.78
		-0.17%

International Markets

Market Index	Close	Change
NIKKEI	26405.23	-385.89
		-1.44%
HANG SENG	21650.98	-27.02
		-0.12%
SENSEX	60858.43	-187.31
		-0.31%
FTSE 100*	7747.29	-83.41
		-1.07%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.749		2.724
CND. 30 Year Bond		2.851		2.845
U.S.    10 Year Bond		3.3951		3.3698
U.S. 30 Year Bond		3.5694		3.5378

Currencies

BOC Close	Today	Previous
Canadian $	0.7426	0.7412
US $	1.3466	1.3492
Euro Rate 1 Euro=		Inverse
Canadian $	1.4586	0.6856
US  $	1.0831	0.9233

Commodities

Gold	Close	Previous
London Gold Fix	1920.70	1913.80
Oil
WTI Crude Future	80.33	79.48

Market Commentary:
On this day in 1736, James Watt, one of the fathers of the Industrial Revolution, was born in Greenock, Scotland. He is credited with improving the steam engine it until it worked well enough to power Britain’s textile mills and railroads, making large-scale factories possible for the first time in history.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.2%, or 34.78 to 20,341.44 in Toronto.
Shopify Inc. contributed the most to the index decline, decreasing 3.0%.
Ballard Power Systems Inc. had the largest drop, falling 10.6%.
Today, 139 of 236 shares fell, while 92 rose; 9 of 11 sectors were lower, led by industrials stocks.
Insights
* So far this week, the index was little changed
* The index declined 4.1% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 8.4% below its 52-week high on April 5, 2022 and 13.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.6% in the past 5 days and rose 5.9% 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 13.1 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$3.24t
* 30-day price volatility fell to 12.61% compared with 13.20% in the previous session and the average of 13.23% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | -25.8040| -1.0| 4/21
Financials | -22.1140| -0.4| 4/25
Information Technology | -17.0815| -1.4| 6/8
Communication Services | -6.7511| -0.7| 0/6
Real Estate | -6.0066| -1.1| 3/19
Utilities | -6.0065| -0.7| 2/14
Consumer Discretionary | -4.8938| -0.7| 4/11
Health Care | -1.3356| -1.7| 2/5
Consumer Staples | -0.4583| -0.1| 4/7
Materials | 19.6965| 0.8| 35/14
Energy | 35.9612| 1.0| 28/9
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -13.1400| -3.0| 3.9| 9.1
Canadian National | -8.6100| -1.2| 14.6| 1.8
Nutrien | -6.3560| -1.7| 2.6| 3.9
Barrick Gold | 4.5130| 1.5| -39.4| 8.7
Suncor Energy | 8.2890| 2.0| -22.2| 3.8
Canadian Natural Resources | 11.0100| 1.8| -14.3| 6.5
US
By Stephen Kirkland
(Bloomberg) — US stocks fell for a third day as risks from rising interest rates to economic growth and earnings kept acgrip on sentiment.
Still, bulls can take some solace in the selloff in equities showing signs of easing, with the S&P 500 ending down 0.8%, less than the 1.6% slide a day earlier.
Despite some selling into the close, dip buyers emerged in some big tech names while traders digested the latest Fed speak.
Federal Reserve Governor Lael Brainard, considered a dove, said Thursday rates will need to stay elevated for a period to further cool inflation.
She didn’t state a preference for whether the Fed should downshift hikes at its next meeting or what peak rate she envisioned this year.
Her comments came a day after Fed hawks called for boosting rates, with St. Louis Fed President James Bullard penciling in a forecast for a rate range of 5.25% to 5.5% by the end of this year.
The current range is 4.25% to 4.5%.
Earnings provided little respite.
Procter & Gamble Co. slid after reporting shrinking sales volume.
Alcoa Corp. fell after saying aluminum shipments will be weaker than anticipated this year.
Discover Financial Services sank after the credit-card company warned write-off rates may double this year.

Treasuries stayed lower throughout the session, with the 10-year yield rising 3 basis points, mirroring moves in German bunds after the head of the European Central Bank reaffirmed her aggressive stance.
The dollar fell, while the euro and yen gained.
Adding to the somber mood, the US hit its federal debt limit and the Treasury Department began the use of special measures to avoid defaulting on any payments.
Data were mixed Thursday, with new US home construction declining for a fourth-straight month in December.
Applications for US unemployment benefits unexpectedly fell last week, sliding to the lowest level since September and underscoring a strong jobs market.
That followed figures a day earlier showing producer prices and retail sales fell, while business equipment production slumped.
“Wage growth has slowed, and broad data is weakening, but Fed officials (at least the ones that have spoken so far) are clearly reluctant to let financial conditions ease,” writes Dennis DeBusschere, of 22V Research. “The hyper focus on anchoring financial conditions will change as inflation continues to move lower/data weakens, but there are not enough data points for the Fed to be comfortable with that call yet.”
More commentary:
“The factors driving the sharp YTD rally (short covering, risk bid and lower yields) appear to be hitting their near term bounds,” writes Chris Harvey, head of equity strategy at Wells Fargo. This will likely cause the market to trade sideways-to-down over the short term.”
“Jobless claims falling for the fourth week in a row is a sign that the labor market is still seemingly able to weather the storm, though the sizable layoffs at blue chips in these past weeks indicate the economic environment is weighing on companies–especially those in the tech sector,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office. “When considering that the overall earnings picture continues to be a mixed bag, investors shouldn’t be surprised to see more volatility in the weeks ahead.”
“What just some weeks ago would have seen markets cheering the weaker data as it would have suggested correctly that the Fed’s aggressive rate hike campaign is doing its job in tamping down the demand side of the economy, is now being judged more harshly with bad news no longer enjoying a warm welcome by traders and investors alike,” Quincy Krosby, chief global strategist for LPL Financial, writes. “The equity markets, always more cheerful than their fixed income brethren, have apparently begun to interpret data with a more realistic perspective.”
Key events this week:
* Japan CPI, Friday
* China loan prime rates, Friday
* US existing home sales, Friday
* IMF’s Kristalina Georgieva and ECB’s Lagarde speak in Davos, Friday

Here are some of the main market moves:
Stocks
* The S&P 500 fell 0.8% as of 4:01 p.m. New York time
* The Nasdaq 100 fell 1%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.4% to $1.0833
* The British pound rose 0.3% to $1.2389
* The Japanese yen rose 0.4% to 128.42 per dollar
Cryptocurrencies
* Bitcoin rose 1.5% to $21,083.85
* Ether rose 2% to $1,558.82
Bonds
* The yield on 10-year Treasuries advanced two basis points to 3.39%
* Germany’s 10-year yield advanced four basis points to 2.06%
* Britain’s 10-year yield declined four basis points to 3.28%
Commodities
* West Texas Intermediate crude rose 1.2% to $80.43 a barrel
* Gold futures rose 1.4% to $1,934.10 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson, Denitsa Tsekova, Srinivasan Sivabalan, Emily Graffeo, Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

I never knew an early-rising, hard-working, prudent man, careful of his earnings,
and strictly honest who complained of bad luck. – Henry Ward Beecher, 1813-1887.

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 Wednesday.

January 18, 1788: The first English settlers arrived in Australia’s Botany Bay to establish a penal colony.  Go to article » 

Netflix announced all of its new movies for 2023.

Lisa Marie Presley’s memorial to be held at Graceland.  A memorial has been planned at Graceland for Lisa Marie Presley, the only child of Elvis. The family’s estate said the public is invited to attend.

Doctors risked their own lives to remove a live grenade from a Ukrainian soldier’s chest:  Ukrainian military doctors have successfully completed a rare and dangerous operation — removing an unexploded grenade from a patient’s chest, according to senior Ukrainian officials.  On Jan. 9, Hanna Maliar, Ukraine’s deputy minister of defense, posted an X-ray image on Facebook showing the unexploded ordnance lodged inside the chest of a Ukrainian soldier.  Full Story: Live Science (1/17)

French nun Sister André, the world’s oldest known person, died on Tuesday in the southern city of Toulon, France, her spokesperson announced. She was 118. Born as Lucile Randon on February 11, 1904, Sister André dedicated most of her life to religious service and was the oldest nun to ever live, according to the Guinness World Records.
PHOTOS OF THE DAY

View finder
‘The famous secret doorway to the hidden canals of Bologna, Italy. Taken on a wintery afternoon in the early days of 2023 while exploring this beautiful historic city. The hatch is weighed down in padlocks symbolising eternal love from couples all over the world.’
Photograph: Beth Timpson

Golden opportunity
‘Driving to North Queensferry near Edinburgh to watch the sunset. This view exceeded the views of the destination.’
Photograph: Polonez

Storm brewing
‘Rainy skies closing in on a local fisherman’s boat on Bazaruto Island, Mozambique.’
Photograph: Terry Dunne
Market Closes for January 18^th, 2023

Market Index	Close	Change
Dow Jones	33296.96	-613.89
		-1.81%
S&P 500	3928.86	-62.11
		-1.56%
NASDAQ	10957.01	-138.10
		-1.24%
TSX	20376.23	-81.23
		-0.40%

International Markets

Market Index	Close	Change
NIKKEI	26791.12	+652.44
		+2.50%
HANG SENG	21678.00	+100.36
		+0.47%
SENSEX	61045.74	+390.02
		+0.64%
FTSE 100*	7830.70	-20.33
		-0.26%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.724		2.855
CND. 30 Year Bond		2.845		2.925
U.S.    10 Year Bond		3.3698		3.5494
U.S. 30 Year Bond		3.5378		3.6639

Currencies

BOC Close	Today	Previous
Canadian $	0.7412	0.7468
US $	1.3492	1.3390
Euro Rate 1 Euro=		Inverse
Canadian $	1.4560	0.6868
US  $	1.0791	0.9267

Commodities

Gold	Close	Previous
London Gold Fix	1913.80	1917.00
Oil
WTI Crude Future	79.48	80.18

Market Commentary:
On this day in 1956: After more than a half-century as a private company, the Ford Motor Co. went public when the Ford Foundation sold 10.2 million shares at $64.50.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.4% at 20,376.23 in Toronto.
The move was the biggest loss since Jan. 5 and follows the previous session’s increase of 0.3%.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 1.0%.
Wesdome Gold Mines Ltd. had the largest drop, falling 16.7%.
Today, 150 of 236 shares fell, while 82 rose; 10 of 11 sectors were lower, led by financials stocks.
Insights
* The index declined 4.2% in the past 52 weeks. The MSCI AC Americas Index lost 15% in the same period
* The S&P/TSX Composite is 8.3% below its 52-week high on April 5, 2022 and 14% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 1.8% in the past 5 days and rose 4.8% 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 13.1 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$3.25t
* 30-day price volatility fell to 13.20% compared with 13.64% in the previous session and the average of 13.26% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -33.0423| -0.5| 10/18
Energy | -25.4482| -0.7| 8/31
Industrials | -21.1731| -0.8| 8/18
Consumer Discretionary | -6.0506| -0.8| 5/10
Consumer Staples | -4.6338| -0.5| 1/10
Communication Services | -4.6234| -0.5| 1/5
Utilities | -3.3711| -0.4| 5/11
Health Care | -1.0939| -1.4| 1/6
Information Technology | -0.7295| -0.1| 9/5
Real Estate | -0.6978| -0.1| 7/15
Materials | 19.6284| 0.8| 27/21
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
TD Bank | -11.5200| -1.0| 8.3| 1.6
Canadian Pacific | -10.6600| -1.6| 39.5| 4.7
RBC | -7.0170| -0.5| 72.4| 5.7
Brookfield Corp | 2.9580| 0.6| -30.0| 12.9
Franco-Nevada | 4.9090| 2.0| 23.4| 5.1
Nutrien | 8.3310| 2.3| 16.7| 5.7
US
By Stephen Kirkland
(Bloomberg) — US stocks ended the day just off session lows after weak economic data rekindled concern over the outlook for growth and corporate earnings.
Treasuries rallied, while the dollar rebounded on deteriorating risk sentiment.
The S&P 500 fell 1.6%, the worst decline in a month, while the tech-heavy Nasdaq 100 snap a seven-day rally, after reversing gains of more than 1%.
Earlier, stocks rallied as Treasury yields fell across the curve on bets weak data would prompt the Federal Reserve to downshift its tightening policy.
Two Fed officials, however, repeated calls for more hikes even after further signs the economy was softening and inflation cooling.
Growth in producer prices slid more than expected last month, and the drop in retail sales exceeded estimates, according to reports released Wednesday.
Meanwhile, business equipment production slumped, with a decline in factory output wrapping up the weakest quarter for manufacturing since the onset of the pandemic.
A consumer losing steam and business investment falling heightened concern the economy may be moving closer to recession.
In corporate news, Microsoft Corp. said it plans to cut 10,000 jobs, taking steps to cope with an increasingly bleak outlook.
Bank of America Corp. started telling executives to pause hiring except for the most vital positions.
Crypto firm Genesis Global Capital is said to be laying the groundwork for a bankruptcy filing.
“While risk assets have had a positive start to 2023, with investors encouraged by signs of fading inflation and a swift reopening in China, it remains possible that the rally is a ‘head fake,’ and that economic data will ultimately disappoint,”  Mark Haefele, chief investment officer at UBS Global Wealth
Management, wrote. “The lagged effect of higher rates could represent a greater drag on growth than expected.”
Treasuries rose across the curve, with the 10-year yield dropping almost 18 basis points to 3.37% in afternoon trading.
Money markets boosted bets on policy easing, betting the Fed rate will peak just below 4.9%, compared with the current band of 4.25% to 4.5%.
While markets price in a step down in the rate-hiking cycle, two closely followed Fed hawks repeated calls for more increases.
St. Louis Fed President James Bullard said policy is “almost” in restrictive territory but not quite.
Policy has to stay on the “tighter side in 2023,” Bullard said in an online Wall Street Journal interview, noting that he penciled in a forecast for a rate range of 5.25% to 5.5% by the end of this year in the Fed’s dot plot of projections.
Cleveland Fed President Loretta Mester said in an interview with The Associated Press published Wednesday that the Fed needs “keep going” but didn’t say how big a rate increase she favored when officials meet Jan. 31-Feb. 1. Philadelphia Fed chief Patrick Harker repeated his view of lifting interest rates in quarter-point increments “going forward.”
The survey in the latest Fed’s Beige Book indicated the pace of price increases had slowed in many districts and price growth was expected to moderate further in the year ahead.
“We expect 2023 to slowly see a shift of the market worrying about inflation to worrying about the economy, which is more of a ‘hard landing’ narrative,” said Jonathan Krinsky, chief market technician for BTIG. “Should we close lower today, and should tech/growth underperform despite the meaningful move lower in nominal and real rates, we could be in the early innings of the handoff from the Fed to the economy.”

The yen dropped as much as 2.6% against the dollar after the Bank of Japan doubled down on defending their stimulus, defying intense market speculation.
The currency later traded down 0.5%.
Key events this week:
* US housing starts, initial jobless claims, Philadelphia Fed index, Thursday
* ECB account of its December policy meeting and President Christine Lagarde on a panel in Davos, Thursday
* Fed speakers include Susan Collins and John Williams, Thursday
* Japan CPI, Friday
* China loan prime rates, Friday
* US existing home sales, Friday
* IMF’s Kristalina Georgieva and ECB’s Lagarde speak in Davos, Friday
Here are some of the main market moves:
Stocks
* The S&P 500 fell 1.6% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.3%
* The Dow Jones Industrial Average fell 1.8%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro was little changed at $1.0790
* The British pound rose 0.4% to $1.2338
* The Japanese yen fell 0.6% to 128.88 per dollar
Cryptocurrencies
* Bitcoin fell 2.8% to $20,722.46
* Ether fell 3.8% to $1,520.25
Bonds
* The yield on 10-year Treasuries declined 18 basis points to 3.37%
* Germany’s 10-year yield declined seven basis points to 2.02%
* Britain’s 10-year yield declined one basis point to 3.31%
Commodities
* West Texas Intermediate crude fell 1.2% to $79.22 a barrel
* Gold futures fell 0.2% to $1,905.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson, Isabelle Lee, Srinivasan Sivabalan and Vildana Hajric.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

The superior man seeks what is right; the inferior one, what is profitable. –Confucius, c. 551 BCE-c. 479 BCE

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

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