Month: May 2023

Dear Friends,

Tangents:
May 16^th, 1960: Theodore Maiman operates the first optical laser, built with ruby crystals.
The U2 Incident: On May 16, 1960, a harsh exchange between Soviet leader Nikita Khrushchev and President Dwight D. Eisenhower doomed a much heralded summit conference between the two nations, following the Soviet downing of an American U-2 reconnaissance plane. Go to article > 

Martha Stewart is a Sports Illustrated Swimsuit model.  The lifestyle businesswoman, 81, is the oldest swimsuit model to grace the magazine’s cover.

Amazon is changing its deliveries behind the scenes.  The company is unpacking a new plan that may decrease shipping times.

Diver unexpectedly discovers Roman-era shipwreck carrying beautiful marble columns off Israel’s coast
A diver off the coast of Israel discovered an 1,800-year-old Roman shipwreck containing 44 tons of artifacts. Read More

Bizarre Martian ‘book’ spotted by NASA’s Curiosity rover
The rover spotted a tiny Martian rock that looks eerily like a fossilized book on the surface of the Red Planet. Read More

James Webb telescope discovers ancient ‘water world’ in nearby star system
Astronomers have finally peered past the clouds on the exoplanet GJ 1214b, a mini-Neptune planet around a star about 40 light-years away. Read More

A man’s rare gene variant may have shielded him from devastating form of early Alzheimer’s
The discovery of a gene variant that protects against an early, insidious form of Alzheimer’s could lead to new treatments for the disease. Read More

Scientists discover 62 new moons around Saturn, raising total to 145 — the most in the solar system
Jupiter’s brief but glorious reign as the planet with the most moons in our solar system came crashing down this week as scientists confirmed the discovery of new moons orbiting Saturn. Read More

PHOTOS OF THE DAY

Berlin, Germany
A herd of cattle grazes outside the Reichstag building during a protest by Greenpeace and animal rights activists over how much time the animals should spend on pastures.
Photograph: Nadja Wohlleben/Reuters

Hiroshima, Japan
A tricycle donated by the father of a boy who died in the 1945 atomic bombing is displayed at the Hiroshima Peace Memorial museum. G7 leaders will meet in Hiroshima from 19 to 21 May, looking to address the Ukraine war, and agree a united line on China’s growing military and economic power.  Photograph: Richard A Brooks/AFP/Getty Images

Ardingly, UK
Catherine Nelson poses with her installation, Planet Wakehurst, at Wakehurst Royal Botanic Gardens Kew, in West Sussex. The 1,550 sq metre canvas – the equivalent of 25 double-decker buses and one of the UK’s largest outdoor installations – features a photo montage of Wakehurst gardens’ world-leading plant collections and is wrapped around a Grade I listed Elizabethan mansion house. Visitors can view the display from a 33ft high platform offering views across Wakehurst’s wild landscape and the South Downs.  Photograph: Gareth Fuller/PA
Market Closes for May 16^th, 2023

Market Index	Close	Change
Dow Jones	33012.14	-336.46
		-1.01%
S&P 500	4109.90	-26.38
		-0.64%
NASDAQ	12343.05	-22.16
		-0.18%
TSX	20242.07	-297.90
		-1.45%

International Markets

Market Index	Close	Change
NIKKEI	29842.99	+216.65
		+0.73%
HANG SENG	19978.25	+7.12
		+0.04%
SENSEX	61932.47	-413.24
		-0.66%
FTSE 100*	7751.08	-26.62
		-0.34%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.052	2.948
CND. 30 Year Bond	3.096	3.028
U.S.    10 Year Bond	3.5433	3.5056
U.S. 30 Year Bond	3.8601	3.8410

Currencies

BOC Close	Today	Previous
Canadian $	0.7421	0.7425
US $	1.3475	1.3468
Euro Rate 1 Euro=		Inverse
Canadian $	1.4638	0.6832
US  $	1.0862	0.9206

Commodities

Gold	Close	Previous
London Gold Fix	2019.90	2019.90
Oil
WTI Crude Future	70.86	71.11

Market Commentary:
📈 On this day in 1972, the Chicago Mercantile Exchange became the first to launch foreign-currency futures trading. University of Chicago economist Milton Friedman rang the opening bell after inspiring the exchange to get into the business.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.5% at 20,242.07 in Toronto.
The move was the biggest since falling 1.6% on March 15 and follows the previous session’s increase of 0.6%.
Today, energy stocks led the market lower, as all sectors lost; 192 of 232 shares fell, while 39 rose.
Enbridge Inc. contributed the most to the index decline, decreasing 3.8%. Iamgold Corp. had the largest drop, falling 8.8%.
Insights
* In the past year, the index had a similar or greater loss 16 times. The next day, it declined nine times for an average 0.8% and advanced seven times for an average 1.3%
* The index was little changed in the past 52 weeks. The MSCI AC Americas Index gained 2% in the same period
* The S&P/TSX Composite is 3.8% below its 52-week high on June 2, 2022 and 13.3% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 1.7% in the past 5 days and fell 1.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.2 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% 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 9.87% compared with 8.78% in the previous session and the average of 9.52% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -91.5130| -2.7| 2/38
Financials | -82.4667| -1.3| 2/26
Materials | -52.5923| -2.0| 6/44
Information Technology | -17.8443| -1.2| 5/7
Utilities | -10.9336| -1.2| 4/12
Industrials | -10.3517| -0.4| 11/16
Real Estate | -9.8902| -2.0| 1/20
Consumer Discretionary | -8.5716| -1.1| 3/12
Consumer Staples | -7.9408| -0.9| 1/10
Communication Services | -4.7679| -0.5| 3/2
Health Care | -1.0186| -1.5| 1/5
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Enbridge | -27.8600| -3.8| 55.5| -5.4
RBC | -25.2200| -2.0| 7.2| 0.8
TD Bank | -17.3400| -1.7| -47.4| -7.0
Air Canada | 1.0770| 2.2| 54.2| 11.4
CGI Inc | 1.2060| 0.6| -6.5| 20.1
Thomson Reuters | 1.7590| 1.0| -8.1| 8.9
US
By Rita Nazareth
(Bloomberg) — Wall Street traders remained glued to the latest developments on whether Washington will raise the debt ceiling and prevent a historic default, with both stocks and bonds falling.
The Dow Jones Industrial Average sank 1%, underperforming other benchmarks.  
Yields rose across the US curve, with the rate on 30-year notes climbing to around 3.9% — the highest since the run-up to the banking turmoil that erupted in early March — amid Pfizer Inc.’s $31 billion debt sale.
President Joe Biden launched negotiations with House Speaker Kevin McCarthy Tuesday, as leaders in Washington race to reach a budget deal and avoid a US default.
The meeting at the White House comes amid signs negotiators are struggling to find common ground, with entrenched disagreements on the size and scope of concessions to raise the federal spending limit.
“Since both sides know what is at stake, default is improbable,” said Seema Shah, chief global strategist at Principal Asset Management. “However, every day closer to the Treasury’s June 1 deadline without a resolution will likely elevate volatility in markets, trim demand for US risk assets, and even expedite recession.”

The mood among global fund managers soured further in May, with investors flocking to cash amid concerns that a recession and credit crunch are looming, according to Bank of America Corp.’s latest survey.
The sentiment among fund managers deteriorated to the most bearish this year, with 65% of survey participants now expecting a weaker economy, B of A’s poll showed.
Federal Reserve Bank of Cleveland President Loretta Mester said the central bank is unable to do much about slow long-term economic growth, but can “do its part” by curbing prices.
Her Richmond counterpart Thomas Barkin said he was still looking to be convinced that inflation has been defeated and that he’d support raising rates further if needed.
US retail sales increased in April, suggesting consumer spending is holding up in the face of economic headwinds including inflation and high borrowing costs.
“There is nothing in this series that will take a June rate hike off the table — although we are doubtful one comes to fruition,” said Ian Lyngen at BMO Capital Markets. “Instead, the Fed will err on the side of retaining terminal for as long as possible as economic headwinds continue to mount, but remain contained for the time being.”
Key events this week:
* Eurozone CPI, Wednesday
* BOE Governor Andrew Bailey delivers keynote speech, Wednesday
* US housing starts, Wednesday
* US initial jobless claims, Conference Board leading index, existing home sales, Thursday
* Japan CPI, Friday
* ECB President Christine Lagarde participates in panel at Brazil central bank conference, Friday
* New York Fed’s John Williams speaks at monetary policy research conference in Washington; Fed Chair Jerome Powell and former chair Ben Bernanke to take part in panel discussion, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.6% as of 4 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average fell 1%
* The MSCI World index fell 0.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.1% to $1.0863
* The British pound fell 0.4% to $1.2480
* The Japanese yen fell 0.1% to 136.32 per dollar
Cryptocurrencies
* Bitcoin fell 1.5% to $26,933.21
* Ether fell 0.5% to $1,816.84
Bonds
* The yield on 10-year Treasuries advanced three basis points to 3.53%
* Germany’s 10-year yield advanced four basis points to 2.35%
* Britain’s 10-year yield was little changed at 3.82%
Commodities
* West Texas Intermediate crude fell 0.8% to $70.56 a barrel
* Gold futures fell 1.4% to $1,993.90 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee and Carly Wanna

Have a lovely evening.

Be magnificent!
As ever,

Carolann
Wherever we look upon this earth, the opportunities take shape within the problems. – Nelson A. Rockefeller, 1908-1979.

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 May 15, 1911, the Supreme Court ordered the dissolution of Standard Oil Company, ruling it was in violation of the Sherman Antitrust Act. Go to article >
May 15, 1252: Pope Innocent IV issues the papal “Ad exstirpanda,” which authorizes the use of torture by the Inquisition.

L. Frank Baum, author of The Wonderful Wizard of Oz, b. 1856.
Henry James, writer, b. 1843.
“Live all you can – it’s a mistake not to.  It doesn’t so much matter what you do in particular, so long as you have your life.  If you haven’t had that, what have you had?” -Henry James.

Nepali Sherpa ties Mount Everest climbing record.  This year’s climbing season has been packed with impressive milestones. The latest record-holder scaled Everest for the 26th time on Sunday.

Sweden’s Loreen wins historic second Eurovision.  This year’s show boasted an array of strong and eccentric performances, but Sweden took home the title of winning act.

The best laptop actually worth buying, as tested by CNN’s editors.  We extensively test the latest laptops on the market from the likes of Apple, Dell and Samsung to help you figure out what’s actually worth spending your money on. Here are our picks for the best laptops you can buy now.

Mysterious, ultra low-frequency noises detected in Earth’s atmosphere — and scientists can’t explain them
Solar-powered balloons detected strange rumblings at a height of 70,000 feet above the Earth’s surface. Scientists can’t identify them. Read More

5,400-year-old tomb discovered in Spain perfectly captures the summer solstice
Archaeologists have discovered a 5,400-year-old megalithic tomb near a prominent lone mountain in southern Spain, suggesting the peak may have been meaningful to prehistoric people there. Read More

Did Noah’s flood really happen? Noah’s flood is a story much older than the Bible, and researchers are still learning about its roots. Read More

PHOTOS OF THE DAY

Cannes, France
The official poster of the 76th Cannes film festival featuring a photo of Catherine Deneuve by Jack Garofalo adorns the facade of the Palais des Festivals.  Photograph: Christophe Simon/AFP/Getty Images

Jaffa, Israel
A rare female Mediterranean monk seal lies on the shore Photograph: Amir Cohen/Reuters

Mexico City, Mexico
A heron in a chinampa (floating farm).  Photograph: Anadolu Agency/Getty Images
Market Closes for May 15^th, 2023

Market Index	Close	Change
Dow Jones	33348.60	+47.98
		+0.14%
S&P 500	4136.28	+12.20
		+0.30%
NASDAQ	12365.21	+80.47
		+0.65%
TSX	20539.97	+120.35
		+0.59%

International Markets

Market Index	Close	Change
NIKKEI	29626.34	+238.04
		+0.81%
HANG SENG	19971.13	+343.89
		+1.75%
SENSEX	62345.71	+317.81
		+0.51%
FTSE 100*	7777.70	+23.08
		+0.30%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.948	2.880
CND. 30 Year Bond	3.028	2.981
U.S.    10 Year Bond	3.5056	3.4588
U.S. 30 Year Bond	3.8410	3.7799

Currencies

BOC Close	Today	Previous
Canadian $	0.7425	0.7376
US $	1.3468	1.3557
Euro Rate 1 Euro=		Inverse
Canadian $	1.4643	0.6829
US  $	1.0874	0.9196

Commodities

Gold	Close	Previous
London Gold Fix	2019.90	2015.95
Oil
WTI Crude Future	71.11	70.04

Market Commentary:
📈 On this day in 1878, the Tokyo Stock Exchange was established, primarily to trade bonds.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.6%, or 120.35 to 20,539.97 in Toronto.
The move was the biggest since rising 1.5% on May 5.
Constellation Software Inc/Canada contributed the most to the index gain, increasing 3.8%.
Spartan Delta Corp. had the largest increase, rising 8.8%.
Today, 158 of 232 shares rose, while 70 fell; 8 of 11 sectors were higher, led by financials stocks.
Insights
* The index advanced 2.2% in the past 52 weeks. The MSCI AC Americas Index gained 2.3% in the same period
* The S&P/TSX Composite is 2.4% below its 52-week high on June 2, 2022 and 14.9% above its low on Oct. 13, 2022
* The S&P/TSX Composite is little changed in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 13.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.24t
* 30-day price volatility fell to 8.78% compared with 9.00% in the previous session and the average of 9.51% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 50.3299| 0.8| 19/10
Materials | 28.4965| 1.1| 39/10
Energy | 23.9154| 0.7| 31/8
Information Technology | 13.4056| 0.9| 8/4
Real Estate | 3.9698| 0.8| 17/3
Utilities | 3.0331| 0.3| 8/7
Industrials | 2.8658| 0.1| 19/8
Health Care | 0.3393| 0.5| 3/3
Communication Services | -0.6402| -0.1| 3/2
Consumer Discretionary | -0.9405| -0.1| 9/6
Consumer Staples | -4.4220| -0.5| 2/9
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Constellation Software | 13.2700| 3.8| -0.2| 27.0
RBC | 9.9160| 0.8| 15.6| 2.8
Nutrien | 9.7230| 3.3| -7.8| -15.2
Dollarama | -1.4230| -0.9| -29.2| 5.7
Centerra Gold | -2.4740| -18.1| 209.5| 5.0
Waste Connections | -2.7340| -0.8| -42.5| 7.8
US
By Rita Nazareth
(Bloomberg) — The stock market remained stuck in a tight range, with investors waiting for clarity on whether Washington lawmakers will be able to reach a deal to avert a US default.
Equities saw small gains on the eve of a meeting between President Joe Biden and House Speaker Kevin McCarthy — with both sides sending mixed signals.
Two Federal Reserve officials indicated they favored pausing rate hikes, renewing appetite for tech mega-caps.
The approval of Microsoft Corp.’s $69 billion takeover of Activision Blizzard Inc. by the European Union also helped sentiment.
Stocks fell earlier Monday as data showed New York manufacturing plunged the most since April 2020.
This week’s figures will likely underscore more economic weakness, emboldening the Fed’s dovish voices even though inflation has failed to reassure, according to Anna Wong at Bloomberg Economics.
Results from retailers like giant Walmart Inc. will also be highly scrutinized.
“There is little conviction on either side as the market continues to digest earnings, a slew of economic data, and finger-pointing in Washington regarding the debt ceiling discussions,” said Craig Johnson, chief market technician at Piper Sandler.
To Chris Larkin at E*TRADE from Morgan Stanley, it’s fair to ask whether the low equity volatility suggests the market is being too complacent — especially after the S&P 500 notched its narrowest non-holiday weekly range since August 2021.
“A debt default may not be the most likely scenario, but any prolonged debate or unexpected development has the potential to trigger higher volatility,” he noted.
JPMorgan Chase & Co.’s Marko Kolanovic joined a chorus of Wall Street strategists Monday in warning that the US debt-ceiling impasse is yet another headwind threatening the outlook for equity markets.
Morgan Stanley’s Mike Wilson delivered a similar warning on the debt-ceiling deadline, noting the bank’s clients said the issue is unlikely to be resolved without some near-term volatility.
Meanwhile, BlackRock Investment Institute’s Jean Boivin and Wei Li said they expect a potential debt showdown to trigger renewed volatility.
Key events this week:
* China retail sales, industrial production, Tuesday
* Eurozone GDP, Tuesday
* US retail sales, industrial production, business inventories, Tuesday
* Fed speakers include Cleveland’s Loretta Mester, New York’s John Williams, Atlanta’s Raphael Bostic and Chicago’s Austan Goolsbee, Tuesday
* Eurozone CPI, Wednesday
* BOE Governor Andrew Bailey delivers keynote speech, Wednesday
* US housing starts, Wednesday
* US initial jobless claims, Conference Board leading index, existing home sales, Thursday
* Japan CPI, Friday
* ECB President Christine Lagarde participates in panel at Brazil central bank conference, Friday
* New York Fed’s John Williams speaks at monetary policy research conference in Washington; Fed Chair Jerome Powell and former chair Ben Bernanke to take part in panel discussion, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.5%
* The Dow Jones Industrial Average rose 0.1%
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.2% to $1.0875
* The British pound rose 0.6% to $1.2530
* The Japanese yen fell 0.3% to 136.06 per dollar
Cryptocurrencies
* Bitcoin rose 1.7% to $27,413.57
* Ether rose 1.7% to $1,828.92
Bonds
* The yield on 10-year Treasuries advanced three basis points to 3.49%
* Germany’s 10-year yield advanced three basis points to 2.31%
* Britain’s 10-year yield advanced four basis points to 3.82%
Commodities
* West Texas Intermediate crude rose 1.6% to $71.14 a barrel
* Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee, Peyton Forte and Carly Wanna.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
He who knows that enough is enough will always have enough. –Lao Tzu, c. 6^th century BCE.

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

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

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

Dear Friends,

Tangents: Happy Friday. It’s  Limerick Day.
MAY 12, 2008: A massive earthquake rocks China.  The magnitude 7.9 quake left some 69,000 people dead, 18000 missing and 4.8 million homeless.  It was the deadliest earthquake in China since 1976 when the Tangshan earthquake killed over 240,000 people.

1943: Axis forces in North Africa surrendered during World War II.  Go to article >

Katharine Hepburn, actress, b. 1907.
Florence Nightingale, nurse, b. 1820.
Edward Lear, limericist, b.1812.

There was an Old Man of the coast,
Who placidly sat on a post;
But when it was cold
He relinquished his hold
Ans called for some hot buttered toast.

Summer’s Best New Books Tackle War, Theft and Scandal on the Beach  These will guarantee a thrilling read—but they won’t promise a happy ending.

A messy black hole may have just triggered the largest explosion in the universe
Astronomers have spotted the most powerful cosmic explosion ever seen — a mysterious, years-long eruption 10 times brighter than any observed supernova. Read More

Breast cancer screening should start at age 40, expert task force says
Female patients should start getting mammograms to screen for breast cancer at age 40 and then get one every other year. Read More

Piranhas swarm 8 tourists at Brazilian resort, leaving them with bloody legs and feet
The fish tore at the bathers’ legs and feet with their razor-sharp teeth, driving them out of the water in Tarumã-Açu, Brazil, on May 1. Read More

Mysterious ‘sea swirls’ off Poland’s coast have a surprising explanation
Scientists have finally identified the surprising origin of bizarre ocean slicks that appear to swirl around the surface of the Baltic Sea. Read More

Woman caught with 22 snakes in her luggage at airport.  Samuel L. Jackson could’ve handled this case … but customs agents found the reptiles before they created a real-life “Snakes on a Plane” scenario. Watch the video here.

Mysterious rumblings were recorded in Earth’s stratosphere.  Solar balloons were sent 70,000 feet up in the air to record sounds of Earth’s stratosphere — and the microphones picked up these unexpected sounds.

Italian pasta prices are soaring.  Rome is investigating why pasta prices have soared despite the price of wheat — the main ingredient — falling in recent months.
PHOTOS OF THE DAY

Louisville, Kentucky, US
A racing fan walks on the grounds of Churchill Downs before the 149th running of the Kentucky Derby.  Photograph: Brynn Anderson/AP

Tulips at a farm in Fenwick, Ontario, Canada
Photograph: Xinhua/Shutterstock

A pelican near an ice-cream stand in St James’s Park, London, as springtime temperatures rise across the UK.
Photograph: James Manning/PA
Market Closes for May 12^th, 2023

Market Index	Close	Change
Dow Jones	33300.62	-8.89
		-0.03%
S&P 500	4124.08	-6.54
		-0.16%
NASDAQ	12284.74	-43.77
		-0.35%
TSX	20419.62	+2.01
		+0.01%

International Markets

Market Index	Close	Change
NIKKEI	29388.30	+261.58
		+0.90%
HANG SENG	19627.24	-116.55
		-0.59%
SENSEX	62027.90	+123.38
		+0.20%
FTSE 100*	7754.62	+24.04
		+0.31%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.880	2.830
CND. 30 Year Bond	2.981	2.974
U.S.    10 Year Bond	3.4588	3.3843
U.S. 30 Year Bond	3.7799	3.7402

Currencies

BOC Close	Today	Previous
Canadian $	0.7376	0.7414
US $	1.3557	1.3488
Euro Rate 1 Euro=		Inverse
Canadian $	1.4724	0.6792
US  $	1.0864	0.9205

Commodities

Gold	Close	Previous
London Gold Fix	2015.95	2037.15
Oil
WTI Crude Future	70.04	70.87

Market Commentary:
📈 A boom in Germany’s stock market drew to an end on this day in 1927. Berlin’s biggest banks, under pressure from the Reichsbank, said they would restrict margin lending. The next day, “Black Friday,” stocks tumbled.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 20,419.62 in Toronto.
The move follows the previous session’s decrease of 0.4%.
Canadian Pacific Kansas City Ltd. contributed the most to the index gain, increasing 1.7%.
Park Lawn Corp. had the largest increase, rising 8.8%.
Today, 149 of 232 shares rose, while 77 fell; 4 of 11 sectors were higher, led by industrials stocks.
Insights
* So far this week, the index fell 0.6%, heading for the biggest decline since the week ended March 17
* The index advanced 3.7% in the past 52 weeks. The MSCI AC Americas Index gained 4.5% in the same period
* The S&P/TSX Composite is 2.9% below its 52-week high on June 2, 2022 and 14.2% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.24t
* 30-day price volatility fell to 9.00% compared with 9.26% in the previous session and the average of 9.96% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | 21.2291| 0.8| 15/11
Materials | 16.6017| 0.7| 39/11
Utilities | 10.1067| 1.1| 15/1
Health Care | 0.3870| 0.6| 4/2
Communication Services | -0.0818| 0.0| 3/2
Consumer Discretionary | -0.1883| 0.0| 8/7
Real Estate | -0.7489| -0.2| 9/11
Consumer Staples | -0.9253| -0.1| 6/5
Energy | -9.2721| -0.3| 27/9
Financials | -11.6748| -0.2| 18/11
Information Technology | -23.4104| -1.5| 5/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Canadian Pacific Kansas | 11.6300| 1.7| -12.3| 10.0
Canadian National | 6.1180| 0.9| -35.9| 1.6
Franco-Nevada | 4.7410| 1.7| -1.5| 15.1
Constellation Software | -8.7570| -2.5| 67.1| 22.3
Brookfield Corp | -9.9240| -2.4| 60.1| -3.5
Shopify | -15.0400| -2.1| -22.9| 76.8
US
By Peyton Forte
(Bloomberg) — Stocks and bonds floundered after Wall Street lost faith that a pause in the Federal Reserve’s rate hiking cycle was a given.
Swaps traders are now pricing in a one-in-10 chance there will be another interest rate hike at the next Fed meeting in June, after odds had been tilted in favor a pause earlier in the week.
The S&P 500 ended the week down 0.3% while the Nasdaq 100 eked out a 0.6% advance.
Early in the session gains were stamped out Friday after a preliminary University of Michigan sentiment survey showed consumers expect prices to rise at a 3.2% annual rate over the next five to 10 years, a 12-year high.
Bank stocks were weak with PacWest Bancorp dropping 3.0% and JPMorgan Chase & Co. sliding 1.4%.
A renewed call to raise the debt limit from Treasury Secretary Janet Yellen added to investor consternation Friday.
“If Congress fails to do that, it really impairs our credit rating,” she said in a Bloomberg Television interview. “We have to default on some obligation, whether it’s Treasuries or payments to Social Security recipients.”
Despite the Federal Reserve’s most aggressive tightening cycle in decades, inflation is still too high, Chicago Fed President Goolsbee said in PBS interview. “You don’t want to land the plane nose down. So we’re trying to balance off — can we slow the inflation without sending it into a recession.”
Yields on the policy-sensitive two-year climbed to 3.99% while the 10-year rose to 3.46% Friday.
Stocks seesawed in a tight range this week as investors await a signal the Fed’s rate hiking cycle is an end.
US data Thursday showed initial jobless claims reached the highest since October 2021 while producer prices rose less than economists expected, suggesting policy tightening may finally be having an effect.
“This market has been flat because we’re in this world where we know the risk of recession is high, but we’re not seeing the whites of the eyes of it in hard data, and that’s why we continue to have this sideways chop,” Cameron Dawson, chief investment officer at Newedge Wealth, said Friday on Bloomberg Television.
Wall Street has been eying 4,200 as a key resistance level for the S&P 500.
The risk is that the market moves higher, according to Dawson.
“The technicals, the sentiment positioning could get us above that and really make it a very big pain trade,” he said.
Solar stocks outperformed with First Solar Inc. leading a rally after new guidance on a clean energy tax credit increase.
The dollar notched its biggest weekly gain since February as investors embraced its safe haven status while Bitcoin dropped below $27,000.
In emerging markets, attention is turning to Turkey’s elections Sunday.
Banking stocks rallied in Istanbul, notching their best weekly performance since 2002, when incumbent President Recep Tayyip Erdogan’s Ak Party rose to power.
Some investors expect the opposition to restore more orthodox monetary policy should it gain power. 
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.4%
* The Dow Jones Industrial Average was little changed
* The MSCI World index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.6% to $1.0852
* The British pound fell 0.5% to $1.2451
* The Japanese yen fell 0.9% to 135.69 per dollar
Cryptocurrencies
* Bitcoin fell 2% to $26,477.8
* Ether fell 0.2% to $1,792.56
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 3.46%
* Germany’s 10-year yield advanced five basis points to 2.28%
* Britain’s 10-year yield advanced seven basis points to 3.78%
Commodities
* West Texas Intermediate crude fell 1.1% to $70.10 a barrel
* Gold futures fell 0.2% to $2,017.30 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Allegra Catelli and Anchalee Worrachate.
Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann
Too low they build, who build beneath the stars. –Edward Young, 1681-1765.

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.

May 11^th,1997: The Deep Blue IBM computer defeated Garry Kasparov to win a six-game chess match between man and machine in New York. Go to article >
May 11,868: The earliest surviving dated printed book is produced in China.  The “Diamond Sutra” is one of the most important texts in Mahayana Buddhism.  The British Library in London presently houses the copy.

Some of the 1st ice age humans who ventured into Americas came from China, DNA study suggests
Ice age groups in the ancient northern coast of China may have helped make up the first wave of people to settle the New World. Read More

Rock that crashed through New Jersey home may be 5 billion-year-old chunk of Halley’s Comet
A rock likely to be a meteorite crashed into a New Jersey home on Monday (May 8), damaging a bedroom but causing no injuries. Read More

1st draft of a human ‘pangenome’ published, adding millions of ‘building blocks’ to the human reference genome
A new version of the human reference genome incorporates genetic data from 47 individuals from around the globe. Read More

PHOTOS OF THE DAY

Salisbury, UK
Salisbury Cathedral staff make final checks to the artist Cornelia Parker’s Magna Carta, a 13-metre-long embroidery installation depicting the Magna Carta Wikipedia pages, installed in the cathedral for the To Be Free exhibition. Photograph: Ben Birchall/PA

Bouznika, Morocco
Riders perform during the historic equestrian performance called Tbourida, dating back to the 16th century. It simulates a succession of military parades reconstructed according to ancestral conventions and rituals. Photograph: Anadolu Agency/Getty Images

Hong Kong, China
The latest version of a robot called Sophia being tested at Hanson Robotics, a robotics and artificial intelligence company. Photograph: Peter Parks/AFP/Getty Images
Market Closes for May 11^th, 2023

Market Index	Close	Change
Dow Jones	33309.51	-221.82
		-0.66%
S&P 500	4130.62	-7.02
		-0.17%
NASDAQ	12328.51	+22.07
		+0.18%
TSX	20417.61	-81.70
		-0.40%

International Markets

Market Index	Close	Change
NIKKEI	29126.72	+4.54
		+0.02%
HANG SENG	19743.79	-18.41
		-0.09%
SENSEX	61904.52	-35.68
		-0.06%
FTSE 100*	7730.58	-10.75
		-0.14%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.830	2.902
CND. 30 Year Bond	2.974	3.054
U.S.    10 Year Bond	3.3843	3.4426
U.S. 30 Year Bond	3.7402	3.7965

Currencies

BOC Close	Today	Previous
Canadian $	0.7414	0.7478
US $	1.3488	1.3371
Euro Rate 1 Euro=		Inverse
Canadian $	1.4725	0.6791
US  $	1.0917	0.9160

Commodities

Gold	Close	Previous
London Gold Fix	2037.15	2030.20
Oil
WTI Crude Future	70.87	72.56

Market Commentary:
📈 On this day in 1861, the New York Stock Exchange banned all trading in Confederate stocks and bonds. Members were still free to sell short any Union securities they choose.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.4%, or 81.7 to 20,417.61 in Toronto.
Today, materials stocks led the market lower, as 6 of 11 sectors lost; 142 of 232 shares fell, while 87 rose.
First Quantum Minerals Ltd. contributed the most to the index decline, decreasing 7.5%.
Torex Gold Resources Inc. had the largest drop, falling 17.1%.
Insights
* So far this week, the index fell 0.6%, heading for the biggest decline since the week ended March 17
* The index advanced 2.9% in the past 52 weeks. The MSCI AC Americas Index gained 4.7% in the same period
* The S&P/TSX Composite is 2.9% below its 52-week high on June 2, 2022 and 14.2% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.9% in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.25t
* 30-day price volatility rose to 9.26% compared with 9.23% in the previous session and the average of 10.13% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -76.1168| -2.9| 2/47
Energy | -22.4146| -0.7| 3/36
Industrials | -19.5762| -0.7| 10/16
Utilities | -2.5346| -0.3| 6/10
Health Care | -2.4478| -3.4| 2/4
Information Technology | -1.5304| -0.1| 7/5
Communication Services | 1.5114| 0.2| 3/2
Real Estate | 2.7353| 0.6| 16/5
Consumer Discretionary | 4.6915| 0.6| 9/6
Consumer Staples | 5.0583| 0.6| 9/2
Financials | 28.9373| 0.5| 20/9
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
First Quantum Minerals | -9.8220| -7.5| 65.3| 9.3
Barrick Gold | -9.5470| -3.0| -4.3| 10.6
Agnico Eagle Mines | -9.0600| -3.3| -7.8| 8.9
Bank of Nova Scotia| 3.8910| 0.7| -52.2| 0.3
Brookfield Corp | 4.6640| 1.1| -7.8| -1.1
RBC | 8.4720| 0.7| -52.5| 2.0
US
By Peyton Forte and Emily Graffeo
(Bloomberg) — Stocks ended the day mixed while a Treasuries rally eased in afternoon trading after data signaled a slowdown in the jobs market amid renewed concerns about the health of regional lenders.
The S&P 500 slid 0.2% on Thursday after jobs and inflation data while the Nasdaq 100 gained 0.3%.
Alphabet Inc. buoyed the tech-heavy benchmark after the Google parent company showcased its artificial intelligence tools.
Walt Disney Co. shares dropped on streaming service subscriber losses while Peloton Interactive Inc.’s stock slid after a recall of 2.2 million exercise bikes.
Data showed US initial jobless claims reached the highest since October 2021 while producer prices rose 0.2% in April, trailing economists’ estimates for a 0.3% increase.
The reports signal the Federal Reserve’s policy-tightening campaign may finally be having an effect on inflation as the central bank walks a tightrope between reining in rising prices and tipping the economy into a downturn.
“Inflation has peaked and is trending lower as growth weakens,” according to Don Rissmiller, chief economist at Strategas.
The data support a Fed pause, he said, though there are other risks.
“While the US does not appear to be in recession right now, there are some signs of cracks starting to appear, and global pressures remain,” he wrote.
Haven assets traded stronger, with the dollar rising and Treasury yields falling.
The policy-sensitive two-year rate fell to 3.9%, while 30-year bonds extended a rally following a stronger-than-expected auction.
Swaps traders are pricing in more than 75 basis points of cuts in 2023 after this week’s economic reports, which included a slightly better-than-expected consumer price readout on Wednesday.
“Today’s data is a step in the right direction from the Fed’s perspective,” Kara Murphy, chief investment officer of Kestra Investment Management, said in an interview. “But these numbers are really volatile week-to-week and we’re coming off of extraordinarily strong levels. There’s a lot more that has to happen.”
Economic indicators are “moving in the right direction, but none of it is enough to say that the Fed’s job is done,” she added.
Sentiment seemed fragile with investors still worried about the US debt-ceiling and stability of the banking industry.
In the options market, hedges against volatility are seeing the most demand in five years.
PacWest Bancorp dropped 23% and was the worst performing regional lender after deposits fell 9.5% last week.
“The news headlines increased our customers’ fears of the safety of their deposits,” the company said in a regulatory filing Thursday.
Big banks were also weak after the Federal Deposit Insurance Corp. said larger lenders will face billions of extra fees to replenish the agency’s insurance fund.
Jamie Dimon said “we need to finish the bank crisis,” in a Bloomberg Television interview adding regulators should do “whatever they need to do to make it better.”
JPMorgan’s chief executive officer predicted more regulations were ahead for lenders.
Elsewhere, industrial metals prices fell on the back of economic data pointing to economic weakness in China.
Copper plumbed its lowest since January.
The Bank of England raised its benchmark lending rate to the highest level since 2008 and said further increases may be needed if inflationary pressures persist. 
Key events this week:
* US University of Michigan consumer sentiment, Friday
* Fed Governor Philip Jefferson and St. Louis Fed President James Bullard participate in panel discussion on monetary policy at Stanford University, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4:01 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average fell 0.7%
* The MSCI World index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.6% to $1.0917
* The British pound fell 0.9% to $1.2513
* The Japanese yen fell 0.1% to 134.54 per dollar
Cryptocurrencies
* Bitcoin fell 3.7% to $26,842.63
* Ether fell 4% to $1,784.93
Bonds
* The yield on 10-year Treasuries declined six basis points to 3.38%
* Germany’s 10-year yield declined six basis points to 2.22%
* Britain’s 10-year yield declined nine basis points to 3.71%
Commodities
* West Texas Intermediate crude fell 1.5% to $71.47 a barrel
* Gold futures fell 0.8% to $2,020.20 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from John Viljoen, Ye Xie, and Jennifer Bissell-Linsk.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
Ask advice from those who evidence good self-discipline. –Leonardo da Vinci, 1452-1519.

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

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

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

Dear Friends,

Tangents:
May 10, 1994: Nelson Mandela becomes South Africa’s first black president.  Mandela’s inauguration came after more than 300 years of white rule.  Before becoming president, he was a pivotal figure in the fight against the racist and apartheid regime and was incarcerated for 27 years.

On May 10, 1869, a golden spike was driven at Promontory, Utah, marking the completion of the first transcontinental railroad in the United States. Go to article >

Scientists discover secret ‘symmetries’ that protect Earth from the chaos of space
A new analysis of chaos in the solar system reveals how planetary collisions are avoided over billions of years. Read More

Even mild concussions can ‘rewire’ the brain, possibly causing long-term symptoms
After a mild concussion, parts of the brain can become “hyperconnected,” and this may contribute to patients’ long-lasting symptoms. Read More

Adorable pup wins top prize at Westminster Dog Show
Buddy Holly, a Petit Basset Griffon Vendéen, became the first of his breed to win best in show at the prestigious dog competition.
PHOTOS OF THE DAY

Valletta, Malta:  People view newly restored tapestries hung in the main nave of St John’s Co-Cathedral. Photograph: Darrin Zammit Lupi/Reuters

Blooming gorgeous:  Edinburgh is filled with cherry blossom in the spring, and I make it a point to do my own version of the Japanese tradition of hanami.’
Photograph: Simon Cuthbert-Kerr

Heavy metal: ‘Racks of colourfully marked and numbered steel rods in the industrial metalworking area of Mullae-dong in Seoul, South Korea.’
Photograph: Iain Chatburn/Guardian Community
Market Closes for May 10^th, 2023

Market Index	Close	Change
Dow Jones	33531.33	-30.48
		-0.09%
S&P 500	4137.64	+18.47
		+0.45%
NASDAQ	12306.44	+126.89
		+1.04%
TSX	20499.31	-86.42
		-0.42%

International Markets

Market Index	Close	Change
NIKKEI	29122.18	-120.64
		-0.41%
HANG SENG	19762.20	-105.38
		-0.53%
SENSEX	61940.20	+178.87
		+0.29%
FTSE 100*	7741.33	-22.76
		-0.29%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.902	2.949
CND. 30 Year Bond	3.054	3.076
U.S.    10 Year Bond	3.4426	3.5186
U.S. 30 Year Bond	3.7965	3.8381

Currencies

BOC Close	Today	Previous
Canadian $	0.7478	0.7470
US $	1.3371	1.3387
Euro Rate 1 Euro=		Inverse
Canadian $	1.4690	0.6807
US  $	1.0985	0.9103

Commodities

Gold	Close	Previous
London Gold Fix	2030.20	2000.95
Oil
WTI Crude Future	72.56	73.71

Market Commentary:
📈 On this day in 1965: In a boardroom on Cove St. in New Bedford, Mass., a young, crew-cut Warren Buffett took control of decrepit textile maker Berkshire Hathaway.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.4% at 20,499.31 in Toronto.
The move follows the previous session’s little change.
Brookfield Corp. contributed the most to the index decline, decreasing 3.3%.
Converge Technology Solutions Corp. had the largest drop, falling 22.8%.
Today, 134 of 232 shares fell, while 95 rose; 7 of 11 sectors were lower, led by energy stocks.
Insights
* The index advanced 3.1% in the past 52 weeks. The MSCI AC Americas Index gained 3.2% in the same period
* The S&P/TSX Composite is 2.6% below its 52-week high on June 2, 2022 and 14.7% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.7% in the past 5 days and rose 1.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.27t
* 30-day price volatility fell to 9.23% compared with 9.37% in the previous session and the average of 10.28% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -36.9167| -1.1| 6/34
Materials | -32.3634| -1.2| 9/40
Financials | -15.9692| -0.3| 13/16
Consumer Staples | -9.2033| -1.0| 3/8
Utilities | -9.0320| -1.0| 6/10
Information Technology | -5.6677| -0.4| 9/3
Consumer Discretionary | -3.4671| -0.5| 5/10
Health Care | 0.3782| 0.5| 4/2
Communication Services | 2.0854| 0.2| 5/0
Real Estate | 2.6042| 0.5| 16/4
Industrials | 21.1262| 0.7| 19/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Brookfield Corp | -14.1900| -3.3| 15.6| -2.2
Shopify | -7.6430| -1.1| 7.0| 79.9
First Quantum Minerals | -7.6390| -5.5| -27.4| 18.2
Canadian National | 5.6540| 0.8| -1.8| 1.0
Element Fleet | 6.6820| 13.7| 147.4| 10.3
TD Bank | 10.1300| 1.0| -69.0| -6.3
US
By Emily Graffeo and Vildana Hajric
(Bloomberg) — US stocks posted modest gains in a listless session, while Treasuries rose after a report showed inflation moderated slightly in April and swaps traders upped bets the Federal Reserve will cut rates this year.
The S&P 500 wavered between gains and losses before ending Wednesday’s session up 0.4%.
The tech-heavy Nasdaq 100 posted a 1.1% gain, the highest close for the gauge since Aug. 18. So-called Faang names, Amazon.com Inc., Apple Inc. and Microsoft Corp., bolstered the benchmarks.
Walt Disney Inc. shares slid 3.1% in afterhours trading on faster-than-expected streaming  losses.
US consumer prices rose 0.4% in April with headline CPI up 4.9% on a year-on-year basis, its first reading below 5% in two years.
That’s still well above the 2% level targeted by the Fed as central bank officials juggle the need to curb rampant inflation against a potential recession and banking sector angst.
Policy-sensitive two-year Treasury yields fell to 3.91% while rates on the 10-year tenor were 3.44%.
Swaps contracts indicate traders are pricing in roughly 75 basis points of interest rate cuts this year.
“Yields are down, tech stocks rally,” Liz Young, head of investment strategy at SoFi, by phone. “CPI came in favorably in the sense that it’s finally below 5%. We seem to be moving in the right direction on some of the core pieces, particularly some of the services pieces. That is promising because that’s been the part that really still concerns most of us. However, it’s still at 4.9% and core is still at 5.5% — that didn’t come down at all year over year.”  “This is not something where I think stocks should cheer it to a level that seems like we’re out of the woods. We’re certainly not,” she added.
While traders are pricing in a pause at the next central bank meeting and rate cuts starting as soon as July, it’s not a given. “There’s a lot of looking through rose-colored glasses to all sorts of outcomes that are going to lead the Fed to be able to cut rates. But they’re just forecasts, they haven’t happened yet,” said David Donabedian, chief investment officer of CIBC Private Wealth US.
“If you took a snapshot of the economic and inflation data today and used that as your only guide, that would point you to no rate cuts at all this year,” Donabedian said. “The market is latching onto the-Fed-will-be-our-friend kind of a view.”
An index of the dollar weakened against a basket of its G-10 peers.
In commodities, spot gold edged lower and oil fell after US government data showed crude inventories rose last week.
Investors remain on guard to risks from the standoff in US debt talks, with some of Wall Street’s most experienced traders warning of “unthinkable” long-term damage from a default.
President Joe Biden and congressional Republicans made little tangible progress toward averting a first-ever US default.
“If we default on our debt, the whole world is in trouble,” Biden said in remarks Wednesday.
The president and House Speaker Kevin McCarthy plan to hold another meeting on Friday.
The cost of insuring America’s debt against default now eclipses that of some emerging markets and even junk-rated nations.
Mounting investor anxiety about the prospect of a default has made it more expensive to insure Treasuries than the bonds of — among others — Greece, Mexico and Brazil, which have defaulted multiple times and have credit ratings many rungs below that of the US.
Traders will be turning their gaze to Thursday’s producer prices report next.
In March, the measure of wholesale prices fell by the most since the start of the pandemic.
Economists surveyed by Bloomberg are expecting the headline number to rise 0.3%.

Here’s what Wall Street said about CPI data:
Priya Misra, global head of rates strategy at TD Securities: “Inflation came in a bit weaker and that explains why all asset classes are rallying.”
“Market may be too optimistic and put too much weight on the weakness in some series that are inherently volatile, such as hotels. We need more CPI prints to clarify that inflation is definitely declining.”
Louis Navellier, chief investment officer of Navellier & Associates: “The fading enthusiasm seems to be that the ‘Super Core’ number – excluding food, energy, and shelter – was higher than forecast.”
“The Fed could go either way next month as even though the headline CPI is now below the 5% Fed Funds rate, trends are flattening well above their mantra of 2%, and with the economy still growing and unemployment at 50-year lows, their efforts to slow the economy by rising rates are so far doing the most damage to regional banks.”
Quincy Krosby,chief global strategist for LPL Financial: “Rent-related inflation will indicate definitive signs of easing, helping to push overall headline inflation lower.  Today’s report suggests that the Fed’s campaign to quell inflation is working, albeit more slowly than they would like.”
John Leiper, chief investment officer at Titan Asset Management: “There’s definitely some relief that it’s not hotter than expected, and it bolsters the case for a Fed pause. Over the next few months, we’ll get the base effect rolling off, which may help further. Bigger picture, the market is hyper-fixated on the pause but a pause is still restrictive, and we still have QT. If we see the economic data continue to decline, which I think we will, then I don’t see this as good for risk assets given current valuations.”
Ricardo Gil, head of asset allocation at Trea Asset Management: “The CPI number is in-line with expectation, but 0.4 is still very high and getting inflation to below 3% is showing to be a difficult task. The sentiment is overall more positive, but European trading has been very steady so far this week.”
Alexandre Halbin, portfolio manager at Swisslife Gestion Privee: “The data is in line and there’s no surprises here. I’m rather reassured and the main takeaway is that the probability of an unexpected twist in Jerome Powell’s monetary policy is reducing. We’ll see about a pivot at a later stage. It’s good news that there is no bad news.”
Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin: “The CPI print makes it unlikely that the Fed once again reverses course and hikes in June. Slightly surprising is the divergence between a more positive labor market last week and a slightly softer CPI print today, raising hopes that economic headwinds are less pronounced that feared.”
Key events this week:
* China PPI, CPI, Thursday
* UK BOE rate decision, industrial production, GDP, Thursday
* US PPI, initial jobless claims, Thursday
* Group of Seven finance minister and central bank governors meet in Japan, Thursday
* US University of Michigan consumer sentiment, Friday
* Fed Governor Philip Jefferson and St. Louis Fed President James Bullard participate in panel discussion on monetary policy at Stanford University, Friday.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.4% as of 4:01 p.m. New York time
* The Nasdaq 100 rose 1.1%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.2% to $1.0983
* The British pound was little changed at $1.2626
* The Japanese yen rose 0.7% to 134.34 per dollar
Cryptocurrencies
* Bitcoin rose 0.2% to $27,705.66
* Ether was little changed at $1,848.86
Bonds
* The yield on 10-year Treasuries declined eight basis points to 3.44%
* Germany’s 10-year yield declined six basis points to 2.29%
* Britain’s 10-year yield declined six basis points to 3.80%
Commodities
* West Texas Intermediate crude fell 1.2% to $72.79 a barrel
* Gold futures fell 0.3% to $2,037.10 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee, Sagarika Jaisinghani, Macarena Muñoz, Julien Ponthus, Allegra Catelli, Sam Kim and John Viljoen.
Have a lovely evening.

Be magnificent!

As ever,

Carolann
If money is your hope for independence you will never have it.  The only real security
that a man will have in this world is a reserve of knowledge, experience, and ability. -Henry Ford, 1863-1947.

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

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

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

Dear Friends,

Tangents:
May 9, 1978: The bullet-riddled body of former Italian prime minister Aldo Moro, who’d been abducted by the Red Brigades, was found in an automobile in the center of Rome. Go to article >
1960: The first birth control pill is approved.  The US Food & Drug Administration announced that it would add birth control as a new indication for the drug “Enovid”.
1945: Victory Day, Russia.

Billy Joel, musician, b. 1949.
Candace Bergen, actress, b. 1946.

Summer movie season is back and this year’s lineup is packed.  Movie fans are eagerly awaiting these summer flicks releasing “only in theaters” in the coming months. (Pro tip: Secure your tickets in advance for the best seats!)

The Westminster Dog Show is here.  Thousands of dogs are in New York this week for the canine equivalent of the Olympics. Which breed do you think has the most pet-ential to be named best in show?

Webb telescope spies evidence of hidden planets around nearby star.  Astronomers used the James Webb Space Telescope to observe massive belts of dust around a nearby star that suggest hidden planets are orbiting it.

Buckingham Palace releases official coronation portraits.  Coronation festivities have come to an end. View the official photos of the newly-crowned King, Queen and members of the royal family.

The end of Wendy’s drive-through line is near.

8-year-old girl unearths Stone Age dagger by her school in Norway
While playing outside her school in Norway, an 8-year-old girl found an unexpected treasure — a flint dagger crafted by Stone Age people 3,700 years ago. Read More

Mysterious ‘golden’ fossils from the Jurassic aren’t what they seem
Fossils found in Germany’s Posidonia Shale don’t get their gleam from fool’s gold after all. Read More

4 of Uranus’ biggest moons have secret, underground oceans, new study suggests
A reanalysis of Voyager data suggests that four of Uranus moons may have oceans tucked between their cores and icy crusts. Read More

Astronomers find remnants of the oldest stars in the universe
A gas cloud 13 billion light-years away may be the resting place of some of the earliest stars in the universe. Read More

PHOTOS OF THE DAY

Wertheim, Germany
A hare sits on the race track of a stud farm near Frankfurt. Photograph: Michael Probst/AP

Orny, Switzerland
A farm surrounded by rapeseed Photograph: Fabrice Coffrini/AFP/Getty Images

Seoul, South Korea
Novice monks react after getting their heads shaved during an event to celebrate the upcoming Vesak Day, birthday of Buddha, at Jogye temple. Nine children began experiencing Buddhist priests’ lives as novice monks for three weeks at the temple. Photograph: Kim Hong-Ji/Reuters
Market Closes for May 9^th, 2023

Market Index	Close	Change
Dow Jones	33561.81	-56.88
		-0.17%
S&P 500	4119.17	-18.95
		-0.46%
NASDAQ	12179.55	-77.37
		-0.63%
TSX	20585.73	+0.58
		—

International Markets

Market Index	Close	Change
NIKKEI	29242.82	+292.94
		+1.01%
HANG SENG	19867.58	-429.45
		-2.12%
SENSEX	61761.33	-2.92
		—
FTSE 100*	7764.09	-14.29
		-0.18%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.949	2.979
CND. 30 Year Bond	3.076	3.118
U.S.    10 Year Bond	3.5186	3.5072
U.S. 30 Year Bond	3.8381	3.8227

Currencies

BOC Close	Today	Previous
Canadian $	0.7470	0.7477
US $	1.3387	1.3374
Euro Rate 1 Euro=		Inverse
Canadian $	1.4673	0.6815
US  $	1.0964	0.9121

Commodities

Gold	Close	Previous
London Gold Fix	2000.95	2000.95
Oil
WTI Crude Future	73.71	73.16

Market Commentary:
📈 On this day 1894: Benjamin Grossbaum was born in London, to a homemaker and an importer of Austrian china. His family later changed its surname to Graham, and he became the godfather of securities analysis and value investing.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 20,585.73 in Toronto.
Teck Resources Ltd. contributed the most to the index gain, increasing 3.3%.
SNC-Lavalin Group Inc. had the largest increase, rising 12.2%.
Today, 128 of 232 shares rose, while 102 fell; 6 of 11 sectors were higher, led by energy stocks.
Insights
* The index advanced 2.9% in the past 52 weeks. The MSCI AC Americas Index gained 2.9% in the same period
* The S&P/TSX Composite is 2.1% below its 52-week high on June 2, 2022 and 15.2% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.9% in the past 5 days and rose 1.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 13.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.27t
* 30-day price volatility rose to 9.37% compared with 9.36% in the previous session and the average of 10.32% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 21.3652| 0.6| 30/10
Industrials | 13.2425| 0.5| 15/12
Materials | 5.1095| 0.2| 29/20
Consumer Staples | 4.0710| 0.5| 5/6
Utilities | 2.8842| 0.3| 11/5
Consumer Discretionary | 0.4731| 0.1| 9/6
Health Care | -0.5366| -0.8| 3/3
Information Technology | -2.3349| -0.2| 6/6
Real Estate | -3.0242| -0.6| 4/16
Communication Services | -3.4858| -0.4| 0/5
Financials | -37.1961| -0.6| 16/13
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Teck Resources | 6.1320| 3.3| -0.7| 20.8
Brookfield Corp | 4.8630| 1.2| 20.5| 1.2
SNC-Lavalin Group | 4.7570| 12.2| 493.8| 50.4
Bank of Nova Scotia| -11.5900| -2.1| -3.7| -0.7
TD Bank | -12.0200| -1.2| -53.7| -7.2
RBC | -18.4800| -1.5| -58.0| 1.7
US
By Cristin Flanagan and Peyton Forte
(Bloomberg) — US equities slumped ahead of a critical inflation report while the debt ceiling impasse dragged on investor sentiment.
The dollar edged higher.
The S&P 500 ended Tuesday 0.5% lower with PayPal Holdings Inc. the worst performer on the index after outlook disappointed.
The Nasdaq 100 slid 0.7%.
Stock gauges have been stuck in narrow trading ranges as traders weigh the potential end of the Federal Reserve’s interest rate hikes against the possibility of an economic slowdown.
Investors are tracking efforts in Washington to end a standoff over the US debt ceiling, with President Joe Biden due to sit down with House Speaker Kevin McCarthy Tuesday as the two face pressure to forge a deal.
McCarthy rejected the idea of a short-term debt-limit extension ahead of the meeting.
Treasury Secretary Janet Yellen has warned that the debt limit could be breached as soon as June 1.
See Bloomberg’s Debt-Ceiling Anxiety Tracker: Key Seven-Day
“The meeting is unlikely to generate major breakthroughs on the debt-ceiling impasse, though it might finally focus more attention on the issue,” Art Hogan, chief market strategist at B. Riley Wealth Management, wrote. “The most likely scenario is Congress will pass an extension until September 30, when the fiscal year ends. This would set up a larger battle on the 2024 budget and the debt ceiling, all at once.”
The S&P 500 has been stuck trading between 3,800 and 4,200 this year.
Equities could finally break out of that range and move higher if, “data points more convincingly towards a soft landing, there are no more regional bank failures, core inflation drops faster than expected, the Fed confirms the pause and a debt ceiling deal is reached,” said Tom Essaye, founder of The Sevens Report newsletter.
Bears, according to Jonathan Krinsky, chief market technician at BTIG, are looking for the benchmark to fall below 3,800.
“The bullish argument is that the market is so resilient and it can’t crack despite all the widely known problems,” Krinsky wrote. On the other hand, “if the market is so strong, why hasn’t it been able to break out above 4,200 despite spending so much time just below it, a VIX that broke below 16, and many tech names up over 20% YTD? The reason is breadth and credit.”
Signs of tightening credit were apparent in a Fed poll of lending officers Monday.
The first quarter survey showed demand for loans weakened, heightening recession worries.
Fed officials including New York Fed President John Williams are watching for signs of a credit crunch.
Williams said he wasn’t including a rate cut in his forecast for this year at an event Tuesday. He left the door open on the odds of a Fed pause.
Swaps suggest traders are expecting at least a 50 basis points in cuts by the end of 2023.
Sentiment was also hurt by a report showing a steep drop in Chinese imports last month, a sign that the economy’s recovery from Covid lockdown isn’t as strong as many had hoped.
Oil traded at $73.50 a barrel.
Traders are awaiting the monthly US inflation report, due Wednesday.
Economists expect headline CPI to rise by 5% on a year-on-year basis, showing that price pressures are still uncomfortably high for the Federal Reserve.
Yields on the policy-sensitive two-year rose to 4.0% with the 10-year at 3.5%.
An index of dollar strength climbed, gold also gained.
PacWest Bancorp ended the day up 2.3%, leading gains among lending peers in the KBW Regional Banking Index.
Key events this week:
* US President Joe Biden scheduled to meet with congressional leaders on debt limit, Tuesday
* US CPI, Wednesday
* China PPI, CPI, Thursday
* UK BOE rate decision, industrial production, GDP, Thursday
* US PPI, initial jobless claims, Thursday
* Group of Seven finance minister and central bank governors meet in Japan, Thursday
* US University of Michigan consumer sentiment, Friday
* Fed Governor Philip Jefferson and St. Louis Fed President James Bullard participate in panel discussion on monetary policy at Stanford University, Friday.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.5% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.7%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World index fell 0.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.4% to $1.0963
* The British pound was little changed at $1.2620
* The Japanese yen was little changed at 135.22 per dollar
Cryptocurrencies
* Bitcoin rose 0.6% to $27,730.97
* Ether rose 0.7% to $1,854.83
Bonds
* The yield on 10-year Treasuries advanced two basis points to 3.53%
* Germany’s 10-year yield advanced three basis points to 2.35%
* Britain’s 10-year yield advanced seven basis points to 3.86%
Commodities
* West Texas Intermediate crude rose 0.4% to $73.48 a barrel
* Gold futures rose 0.4% to $2,041.90 an ounce
This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

A critic is a man created to praise greater men than himself, but he is never able to find them. –Richard Le Gallienne, 1866-1947.
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.  Happy Cinco De Mayo.  Full moon tonight.

On May 5, 1961, astronaut Alan B. Shepard Jr. became America’s first space traveler as he made a 15-minute suborbital flight in a capsule launched from Cape Canaveral, Fla.  Go to article >
May 5, 1980: The British Special Air Service (SAS) terminate the Iranian Embassy siege in London.  Six gunmen had held 26 people hostage fir six days, demanding the release of Iranian Arab prisoners.  Two of the hostages were killed.

How to watch the Eta Aquarid meteor shower — a burst of ‘shooting stars’ left by Halley’s Comet — peak this weekend
An outburst of ‘shooting stars’ from Halley’s Comet could result in a dazzling Eta Aquarid meteor shower on May 5 and 6 — if the full moon doesn’t get in the way. Read More

1st-century burial holds Roman doctor buried with medical tools, including ‘top-quality’ scalpels
The grave of a medical man who died roughly 2,000 years ago has been unearthed in Hungary, along with needles, forceps, scalpels and other tools he used for his profession. Read More

For the first time, scientists watched a dying star swallow a planet whole
Astronomers have spotted a bright flash of light from a Jupiter-size world being consumed by its own star in a preview of Earth’s likely fate. Read More

Take this online Cambridge University test to discover whether you have an exceptional memory.

Google debuts new folding phone.  Remember the hype surrounding the Motorola Razr years ago? Well, it appears foldable smartphones are making a big comeback.
Hawaii’s over-tourism problem may get even worse.
PHOTOS OF THE DAY

Puertollano, Spain
A female blackcap perches on the branch of a hawthorn tree in Ciudad Real. Rising global temperatures have negatively affected brood production in migratory and large birds, while small, sedentary species appear to benefit from the situation, according to a study.  Photograph: Beldad/EPA

Canberra, Australia
The Commonwealth Avenue Bridge appears shrouded in morning fog Photograph: Xinhua/Shutterstock

Los Angeles, US
Lucha libre wrestlers perform during the Lucha VaVoom spectacle Cinco de Mayan at the Mayan Theater in California.  Photograph: Caroline Brehman/EPA
Market Closes for May 5^th, 2023

Market Index	Close	Change
Dow Jones	33674.38	+546.64
		+1.65%
S&P 500	4136.25	+75.03
		+1.85%
NASDAQ	12235.41	+269.01
		+2.25%
TSX	20542.03	+303.84
		+1.50%

International Markets

Market Index	Close	Change
NIKKEI	MARKET CLOSED	N.A.
HANG SENG	20049.31	+100.58
		+0.50%
SENSEX	61054.29	-694.96
		-1.13%
FTSE 100*	7778.38	+75.74
		+0.98%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.909	2.796
CND. 30 Year Bond	3.055	2.974
U.S.    10 Year Bond	3.4370	3.3787
U.S. 30 Year Bond	3.7535	3.7296

Currencies

BOC Close	Today	Previous
Canadian $	0.7472	0.7388
US $	1.3383	1.3535
Euro Rate 1 Euro=		Inverse
Canadian $	1.4774	0.6769
US  $	1.1039	0.9059

Commodities

Gold	Close	Previous
London Gold Fix	2044.70	2014.30
Oil
WTI Crude Future	71.34	68.56

Market Commentary:
📈 On this day in 1850, the National Bank of Belgium was founded as a public limited-liability company. Its shares are still publicly traded, listed in Brussels under the ticker BNB, making it one of the world’s only central banks you can own.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 1.5% at 20,542.03 in Toronto.
The move was the biggest since rising 1.6% on Jan. 6 and follows the previous session’s decrease of 0.6%.
Today, financials stocks led the market higher, as 10 of 11 sectors gained; 170 of 232 shares rose, while 60 fell.
Shopify Inc. contributed the most to the index gain, increasing 6.9%.
Open Text Corp. had the largest increase, rising 12.1%.
Insights
* In the past year, the index had a similar or greater gain 15 times. The next day, it advanced 10 times for an average 0.8% and declined five times for an average 0.9%
* So far this week, the index fell 0.5%, heading for the biggest decline since the week ended March 17
* The index declined 0.7% in the past 52 weeks. The MSCI AC Americas Index lost 1% in the same period
* The S&P/TSX Composite is 2.7% below its 52-week high on May 5, 2022 and 14.9% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 13.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.22t
* 30-day price volatility rose to 9.46% compared with 8.55% in the previous session and the average of 10.62% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 104.2076| 1.7| 27/2
Energy | 78.1178| 2.3| 39/1
Information Technology | 59.8936| 4.1| 11/1
Industrials | 33.7285| 1.2| 16/11
Consumer Discretionary | 13.2632| 1.8| 13/2
Materials | 5.1545| 0.2| 27/23
Utilities | 3.5259| 0.4| 10/5
Consumer Staples | 3.0266| 0.3| 7/4
Health Care | 1.7976| 2.6| 4/2
Real Estate | 1.2951| 0.3| 14/7
Communication Services | -0.1772| 0.0| 2/2
================================================================
| | | | YTD
| Index | | Volume VS | Change
Top Contributors |Points Move| % Change |20D AVG (%)| (%)
================================================================
Shopify | 44.7800| 6.9| 37.9| 76.6
Canadian Natural Resources | 22.3900| 3.9| -40.7| 2.5
TD Bank | 20.6300| 2.0| -39.5| -5.0
Altus Group | -2.4340| -14.8| 1,019.1| -18.2
Agnico Eagle Mines | -5.8470| -2.1| -12.1| 13.8
Barrick Gold | -6.9770| -2.1| -11.7| 16.5
US
By Rita Nazareth
(Bloomberg) — The chaotic week for financial markets ended with a rally in risk assets — possibly driven by short-covering — as regional banks rebounded from a brutal rout and solid jobs data tempered fears of a recession.
Treasuries fell.
A rally in equities halted the S&P 500’s longest losing streak since February.
PacWest Bancorp soared over 80%, following a rout that saw its shares tumbling to a record low.
Western Alliance Bancorp and First Horizon Corp., which were also strongly hit this week, jumped.
The KBW Bank Index of financial heavyweights rebounded from its lowest since September 2020.
Wall Street’s favorite volatility gauge, the VIX, snapped a four-day surge to hover near 17.
Strong earnings at Apple Inc. helped lift the mega-cap tech space, with the world’s most-valuable company climbing almost 5%.
US hiring and workers’ pay gains accelerated in April, showing signs of labor-market resilience and inflationary pressures in the face of headwinds.
“For now, this report is another sign that the Fed hasn’t broken the economy yet,” said Callie Cox, a US investment analyst at eToro. “The bears’ best argument is that a recession is around the corner, but it may be hard to make that argument until we see actual evidence in jobs data.”
Another key aspect of the data is the fact that the strong figures also increase chances the Federal Reserve will hold rates higher for longer, and potentially keep the door open to an 11th straight hike in June.
Fed Bank of St Louis President James Bullard said policymakers will probably have to push rates higher to cool inflation, but added he would wait and see what the data show before deciding what move to support in June.
Bullard also said he thinks the central bank can still achieve a soft landing, with inflation returning to the target without triggering a significant downturn.
Rates on swap contracts linked to Fed meetings — which on Thursday briefly priced in a cut in July — moved higher, to levels consistent with a stable policy rate until September — followed by at least two quarter-point cuts by year-end.
Treasury two-year yields climbed as much as 15 basis points to 3.94%.
“If the Fed was expecting definitive confirmation it’s time to pause, this is not that signal,” said Ronald Temple, chief market strategist at Lazard. “All said, 500 bps of rate hikes are having an impact, but it’s too early to declare victory over inflation.”
In fact, while inflation has shown some signs of moderation, it’s still well above the central bank’s 2% target.
The core consumer price index, which excludes food and energy and is closely watched by the Fed, is projected to show a 5.5% increase in April from a year ago.
The report is due Wednesday.
Bank of America Corp.’s Michael Hartnett — who correctly predicted the equity exodus last year — said that a “new structural bull market requires big Fed easing,” which in turn needs a “big recession.”
Resilience in the labor market and price pressures that remain sticky, however, are likely to prevent the Fed from pivoting to cut rates.
The strategist reiterated a call to “sell the last rate hike” in the note dated May 4, before the jobs report came out.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.9% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.1%
* The Dow Jones Industrial Average rose 1.6%
* The MSCI World index rose 1.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro was little changed at $1.1018
* The British pound rose 0.5% to $1.2635
* The Japanese yen fell 0.4% to 134.85 per dollar
Cryptocurrencies
* Bitcoin rose 2.4% to $29,585.59
* Ether rose 6% to $1,991.7
Bonds
* The yield on 10-year Treasuries advanced five basis points to 3.43%
* Germany’s 10-year yield advanced 10 basis points to 2.29%
* Britain’s 10-year yield advanced 13 basis points to 3.78%
Commodities
* West Texas Intermediate crude rose 4.1% to $71.36 a barrel
* Gold futures fell 1.5% to $2,025.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Carly Wanna, Peyton Forte, and Ksenia Galouchko.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann
There is no distance on this earth as far away as yesterday. –Robert Nathan, 1894-1985.

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.

1626: Dutch explorer Peter Minuit landed on what is now Manhattan. Go to article >
1959: The Grammy is presented for the first time.  It is one of the most prestigious awards in the music industry.  Winners of the first edition included Ella Fitzgerald, Henry Mancini and Frank Sinatra.
1886: Haymarket Square riot.

Horace Mann, educator, b. 1796.
Jane Jacobs, urbanist, b. 1916.
Audrey Hepburn, actress, b. 1929.

Google rolls out an alternative to the password.  Are you bad at picking passwords? Or maybe you use the same one for multiple devices and websites? Google hopes to end that with the introduction of passkeys.

Astronomers observe star swallowing planet for first time.  The planetary demise took place 12,000 light-years away from Earth — a fate that awaits our planet in about 5 billion years, researchers say.

Europe enters the hypersonic plane race.  Frankfurt to Dubai in 90 minutes? Yes, please. A startup company is hoping to operate commercial flights at five times the speed of sound by the 2030s.

462 million-year-old fossilized eyes and brains uncovered in ‘secret’ Welsh fossil site
An “extraordinary” secret fossil spot in Wales contains the preserved eyes and brains of 462 million-year-old creatures hidden amidst a hoard of unknown species. Read More

Ancient Roman camps from secret military mission spotted using Google Earth
Three ancient Roman camps in the Jordanian desert have been discovered by an archaeologist using satellite images from Google Earth. Read More

How to see the full ‘Flower Moon’ eclipsed by Earth’s shadow this weekend
This weekend, the full “Flower Moon” will move through part of Earth’s shadow and be eclipsed for a few hours. The event will be visible to more than 6.6 billion people. Read More

25,000-year-old human DNA discovered on Paleolithic pendant from Siberian cave
Researchers have retrieved human DNA from a Paleolithic pendant and discovered that it belonged to a Siberian woman who lived roughly 25,000 years ago. Read More

Marijuana can increase schizophrenia.
PHOTOS OF THE DAY

Jiuquan, China
Tourists ride camels around Echoing Sand Mountain and the Crescent Spring scenic area in Gansu province.  Photograph: VCG/Getty Images.

Schuylkill Haven, Pennsylvania
A swan and her cygnets in Bubeck park.  Photograph: Jacqueline Dormer/AP.

Buriticupu, Brazil
Lack of urban planning and aggressive deforestation have caused erosion that is driving the small town of Buriticupu in the north-eastern state of Maranhão towards gradual collapse, experts say.
Photograph: Nelson Almeida/AFP/Getty Images
Market Closes for May 4^th, 2023

Market Index	Close	Change
Dow Jones	33127.74	-286.50
		-0.86%
S&P 500	4061.22	-29.53
		-0.72%
NASDAQ	11966.40	-58.93
		-0.49%
TSX	20238.19	-116.49
		-0.57%

International Markets

Market Index	Close	Change
NIKKEI	MARKET CLOSED	N.A.
HANG SENG	19948.73	+249.57
		+1.27%
SENSEX	61749.25	+555.95
		+0.91%
FTSE 100*	7702.64	-85.73
		-1.10%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.796	2.767
CND. 30 Year Bond	2.974	2.935
U.S.    10 Year Bond	3.3787	3.3449
U.S. 30 Year Bond	3.7296	3.6821

Currencies

BOC Close	Today	Previous
Canadian $	0.7388	0.7344
US $	1.3535	1.3617
Euro Rate 1 Euro=		Inverse
Canadian $	1.4908	0.6708
US  $	1.1013	0.9080

Commodities

Gold	Close	Previous
London Gold Fix	2014.30	1995.40
Oil
WTI Crude Future	68.56	68.60

Market Commentary:
📈 On this day in 1979, the first modern leveraged buyout using high-yield junk bonds—a $381 million deal to take Houdaille Industries private—was completed by Kohlberg, Kravis, Roberts & Co. Over the next six years, Houdaille produced a 33.9% average annual return for KKR’s institutional investors.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the fourth day, dropping 0.6%, or 116.49 to 20,238.19 in Toronto.
The index dropped to the lowest closing level since April 6.
Today, financials stocks led the market lower, as 10 of 11 sectors lost; 163 of 232 shares fell, while 69 rose.
Nutrien Ltd. contributed the most to the index decline, decreasing 6.3%.
Bausch Health Cos. had the largest drop falling 20.3%.
Insights
* So far this week, the index fell 1.9%, heading for the biggest decline since the week ended March 17
* The index declined 4.5% in the past 52 weeks. The MSCI AC Americas Index lost 6.3% in the same period
* The S&P/TSX Composite is 4.6% below its 52-week high on May 4, 2022 and 13.2% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 1.4% in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.2 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.24t
* 30-day price volatility rose to 8.55% compared with 8.41% in the previous session and the average of 10.76% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -81.8224| -1.3| 4/25
Industrials | -45.1145| -1.6| 2/25
Energy | -21.5408| -0.6| 20/20
Consumer Discretionary | -17.9951| -2.4| 2/13
Consumer Staples | -13.0891| -1.5| 1/10
Communication Services | -12.7578| -1.4| 0/5
Materials | -6.4502| -0.2| 26/24
Utilities | -4.8001| -0.5| 4/12
Real Estate | -3.9067| -0.8| 5/16
Health Care | -3.5897| -4.9| 2/4
Information Technology | 94.5680| 6.9| 3/9
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Nutrien | -20.7800| -6.3| 60.4| -13.4
Bank of Montreal | -18.9800| -3.3| 15.3| -6.7
RBC | -17.8100| -1.4| -64.6| 1.5
Barrick Gold | 4.8960| 1.5| 99.0| 19.0
Agnico Eagle Mines | 9.0950| 3.4| 21.6| 16.2
Shopify | 121.3000| 23.2| 175.4| 65.2
US
By Rita Nazareth
(Bloomberg) — A fresh rout in regional banks roiled trading desks around the globe, with brewing anxiety about the next financial shoe to drop making traders increase their bets on Federal Reserve
interest-rate cuts.
Apple Inc. climbed in late trading after revenue beat estimates.
Another unsettling round of trading halts in the financial industry hit Western Alliance Bancorp and PacWest Bancorp this time amid losses that topped 60% for each stock.
The rout engulfed several other lenders — big and small — with First Horizon Corp. down over 30% after its merger with Toronto-Dominion Bank was scrapped.
A probe into Goldman Sachs Group Inc.’s role in Silicon Valley Bank’s deal also weighed on sentiment.
All 21 shares in the KBW Bank Index of financial heavyweights such as JPMorgan Chase & Co. and Bank of America Corp. retreated.
The $2.5 billion SPDR S&P Regional Banking exchange-traded fund closed at the lowest since October 2020.
The rout in banks kept a lid on the broader market, with the S&P 500 suffering its fourth straight decline.
Wall Street’s fear gauge, the Cboe Volatility Index (VIX) spiked, reaching the key 20 mark.
That’s a stark contrast with the calm that prevailed in markets for the most part in April and saw the measure below 16 just last week.
That also all shows how investor confidence remains fragile after a string of bank failures and despite Fed Chair Jerome Powell’s Wednesday assurance that authorities were closer to containing the crisis. Smaller lenders are under pressure after a year of rate hikes hammered the value of their bond holdings and drove unrealized losses to an estimated $1.84 trillion.
“The acute phase of bank turmoil may not be over, and policymakers need urgently to recognize that,” said Krishna Guha, vice chairman at Evercore ISI. “The problem is that their financial stability policy options are limited.”
In such a stressful scenario, some lenders have been trying to assuage investors — with little to no avail.
PacWest Bancorp tumbled 51% even after saying core deposits have increased since March and confirming it’s in talks with several potential investors.
Western Alliance also pared losses, but was down 39% despite its denial that the firm is exploring strategic options including a possible sale of all or part of its business.
“Obviously a rough day today — we’re having the latest flare-up in what is slowly becoming a crisis of confidence in the regional-banking sector here in the United States,” said Jim Smigiel, chief investment officer at SEI. “We have recommended additional cash allocations out of equities for our clients.”
That said, Smigiel and a myriad of market observers don’t see the parallels being made in what we’re going through today versus the 2008 financial crisis.
“It’s not a credit crisis, it’s an interest-rate issue,” he noted. “This is just rates have gone up so quickly the valuation of their asset book has declined.”
The recent collapse of First Republic Bank and a raging selloff in regional banks has also bolstered fears of a lending crunch that could spur a hard landing.
For firms with shakier finances that often borrow money not only through banks but also with high-yield debt, signs of stress in the system may inflict even more pain.
“Companies with the highest level of leverage aren’t necessarily the most prudent ones, so if we see a pullback in bank lending, they become harder to underwrite,” said Max Gokhman, head of MosaiQ Investment Strategy at Franklin Templeton Investment Solutions. “Investors recognize that if rates go down, they may not necessarily go down for the most-indebted companies and they may have a hard time getting additional financing when they need it most.”
That’s a tricky scenario for a central bank that just raised rates to the highest level since 2007, signaled a potential pause as early as June, but refrained from hinting at a pivot at this stage.
Bond traders eyeing the deepening rout in US regional bank shares concluded the Fed is likely to reverse this week’s quarter-point interest-rate increase by July in response to tightening credit conditions.
Swap contracts linked to Fed meeting dates collapsed, with the July rate briefly falling to 4.82%, a quarter point below the 5.08% level where the effective fed funds rate is likely to settle as a result of Wednesday’s increase in the target band to 5%-5.25%.
The June swap rate at lows around 5% reflected one-in-four odds of a cut as soon as June.
Traders are also gearing up for Friday’s key jobs report, following data that showed applications for US unemployment benefits rose by the most in six weeks while continuing claims fell.
Even as the labor market starts showing some weakness, it’s still cooling at a much slower pace than other economic indicators in the wake of an aggressive tightening campaign by the Fed.
“In our view, the Fed is very unlikely to cut unless there’s severe financial stress and/or a recession is imminent — stocks likely go down in both scenarios,” said Chris Senyek at Wolfe Research.
Meantime, fears about a political standoff over the US debt limit are driving up rates on short-term Treasury bills, pushing them over 10-year yields by the most in at least three decades.
The risk that Congress will fail to act drove 3-month Treasury bill yields to over 5.25%, with them hitting as much as about 2 full percentage points over 10-year yields on Thursday.
That’s the most since the data compiled by Bloomberg began in 1992. 
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.4%
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World index fell 0.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro fell 0.4% to $1.1014
* The British pound was little changed at $1.2574
* The Japanese yen rose 0.4% to 134.15 per dollar
Cryptocurrencies
* Bitcoin rose 1.3% to $28,890.52
* Ether rose 0.1% to $1,876.22
Bonds
* The yield on 10-year Treasuries advanced three basis points to 3.36%
* Germany’s 10-year yield declined six basis points to 2.19%
* Britain’s 10-year yield declined four basis points to 3.65%
Commodities
* West Texas Intermediate crude was little changed
* Gold futures rose 1% to $2,057.70 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Carly Wanna, Emily Graffeo and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
Lost, yesterday, somewhere between sunrise and sunset, two golden hours, each set with sixty diamond minutes.
No reward offered, for they are gone forever. –Horace Mann, 1796-1859.

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

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

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

Dear Friends,

Tangents:
May 3, 1971: National Public Radio’s  1^rst News Broadcast.
May 3^rd, 1978: The Digital Equipment Corporation sends the world’s first spam email.  A representative sent our 600 emails and sold computers for $12 million.
May 3, 1988: The White House acknowledged that first lady Nancy Reagan had used astrological advice to help schedule President Ronald Reagan’s activities. Go to article >

Niccolò Machiavelli, b. 1469.
Golda Meir, Israeli prime minister, b. 1898.
James Brown, musician, b. 1928.

1st-century Buddha statue from ancient Egypt indicates Buddhists lived there in Roman times
Buddhists lived in Egypt during Roman times, a 1st-century Buddha statue found in Berenike suggests. Read More

Cosmic rays reveal 2,500-year-old subterranean burial in ancient Greek necropolis
Cosmic rays have revealed an underground Greek tomb in Naples, Italy. Read More

China’s malfunctioning Mars rover may have found evidence of recent water on the Red Planet
Data from China’s unresponsive Zhurong rover suggests that Mars had snow and frost as recently as 400,000 years ago. Read More

New ultrasound device helps powerful chemo reach deadly brain cancers, human trial shows
An implanted ultrasound-emitting device helped chemotherapy drugs safely pass into the brains of cancer patients. Read More

Scientists discover closest star-shredding black hole to Earth ever seen
Astronomers comparing maps of the universe uncovered the nearest example of a black hole devouring a star ever detected. Read More

Top 10 best cuisines in the world, according to CNN Travel.  Check out this list of appetizing cuisines.

Webb telescope detects mysterious water vapor in a nearby star system.  Astronomers detected water vapor around a rocky exoplanet located 26 light-years away from Earth. Here’s what it could mean.

PHOTOS OF THE DAY

Srinagar, India
A man steers his boat on a calm Dal Lake Photograph: Tauseef Mustafa/AFP/Getty Images

Tokyo, Japan: Participants carry a portable shrine through the streets during a local festival on Constitution Day
Photograph: Richard A Brooks/AFP/Getty Images

London, UK
Donna Werner from the US, a royal superfan, shows off her handmade hat on the Mall before this weekend’s coronation Photograph: Maja Smiejkowska/Reuters
Market Closes for May 3^rd, 2023

Market Index	Close	Change
Dow Jones	33414.24	-270.29
		-0.80%
S&P 500	4090.75	-28.83
		-0.70%
NASDAQ	12025.33	-55.18
		-0.46%
TSX	20354.68	-52.87
		-0.26%

International Markets

Market Index	Close	Change
NIKKEI	MARKET CLOSED	N.A.
HANG SENG	19699.16	-234.65
		-1.18%
SENSEX	61193.30	-161.41
		-0.26%
FTSE 100*	7788.37	+15.34
		+0.20%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.767	2.823
CND. 30 Year Bond	2.935	2.957
U.S.    10 Year Bond	3.3449	3.4314
U.S. 30 Year Bond	3.6821	3.7110

Currencies

BOC Close	Today	Previous
Canadian $	0.7344	0.7343
US $	1.3617	1.3618
Euro Rate 1 Euro=		Inverse
Canadian $	1.5062	0.6639
US  $	1.1060	0.9042

Commodities

Gold	Close	Previous
London Gold Fix	1995.40	1982.55
Oil
WTI Crude Future	68.60	71.66

Market Commentary:
📈 On this day in 1999, the Dow Jones Industrial Average closed above 11000 for the first time, just 24 trading days after breaking the 10000 mark. The index ended the day at 11014.69.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 0.3%, or 52.87 to 20,354.68 in Toronto.
The index dropped to the lowest closing level since April 10.
Today, energy stocks led the market lower, as 8 of 11 sectors lost; 119 of 232 shares fell, while 109 rose.
Canadian Natural Resources Ltd. contributed the most to the index decline, decreasing 2.0%.
Aritzia Inc. had the largest drop, falling 20.8%.
Insights
* The index declined 2.6% in the past 52 weeks. The MSCI ACVAmericas Index lost 3% in the same period
* The S&P/TSX Composite is 4% below its 52-week high on May 4, 2022 and 13.9% above its low on Oct. 13, 2022
* The S&P/TSX Composite is little changed in the past 5 days and rose 0.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 13.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.25t
* 30-day price volatility fell to 8.41% compared with 8.64% in the previous session and the average of 10.95% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -27.2816| -0.8| 7/32
Consumer Discretionary | -11.4362| -1.5| 4/11
Information Technology | -10.3763| -0.8| 5/7
Consumer Staples | -6.4450| -0.7| 3/8
Financials | -4.8822| -0.1| 14/15
Materials | -4.2366| -0.2| 27/21
Communication Services | -1.1977| -0.1| 2/3
Real Estate | -0.6057| -0.1| 10/11
Industrials | 0.0586| 0.0| 18/9
Health Care | 1.0006| 1.4| 5/0
Utilities | 12.5202| 1.3| 14/2
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Canadian Natural Resources | -11.7700| -2.0| -28.3| 1.7
Thomson Reuters | -8.8300| -4.5| 102.9| 10.1
Nutrien | -8.3130| -2.5| -8.9| -7.6
Brookfield Infrastructure | 5.2870| 3.6| 3.8| 15.0
Enbridge | 5.7690| 0.8| 175.0| 0.1
Canadian Pacific Kansas | 6.5270| 1.0| -27.4| 6.4
US
By Rita Nazareth
(Bloomberg) — Wall Street’s excitement about a potential pause in the Federal Reserve’s aggressive tightening campaign wasn’t enough to keep the stock rally going, with Jerome Powell dashing hopes on interest-rate cuts for now.
The bond market isn’t buying that.
Swap contracts continued to imply a significant easing in monetary policy before the end of 2023.
Treasury two-year yields sank as much as 12 basis points to around 3.85% while the dollar notched a back-to-back slide.
“Potential Fed pause, but no Fed pivot yet,” said Jason Pride at Glenmede. “The Fed is telegraphing that additional monetary tightening may or may not occur, but rate cuts do not yet appear to be on the table. The Fed’s leadership is working hard to thread the needle between telegraphing too much tightening while also not agreeing with the market’s rate cut narrative.”
After the usual back-and-forth of Fed days, the S&P 500 wiped out a rally that approached 1% at one stage to finish near session lows.
The Fed raised rates by another quarter-point Wednesday to a target range of 5% to 5.25%, the highest level since 2007.
The vote was unanimous, and the Federal Open Market Committee omitted a line from its previous statement in March that said it “anticipates that some additional policy firming may be appropriate.”
More Comments:
* Callie Cox at eToro: “The Fed is dropping hints that we’re nearing the end of the rate hike cycle, even though it wants to maintain some wiggle room in case inflation stops slowing. It’s a fair concern. The good news? If this is the last hike, the S&P 500 has risen a year after six out of the last 9 hiking cycles. But in the three times stocks didn’t climb after hikes, it was because of a recession or market crisis. History doesn’t tell us much, other than the Fed better not screw this up.”
* David Russell at TradeStation: “The Fed took another step back from its super-hawkish stance by saying they need to determine future policy. They’re setting up a potential pivot by outlining a series of reasons to pause. Given developments in the banking sector and slowing inflation, there’s more chance this was the last hike.”  
* Ronald Temple at Lazard: “No surprises here. The FOMC struck an appropriate balance between taming inflation while avoiding exacerbating stress in the banking system. Assuming banking issues subside, additional rate hikes may be needed, but it’s time for a pause to allow the full effects of tightening to work its way through the economy.”
* Gregory Faranello at AmeriVet Securities: “The change is language was consistent with our view, and historically the evolution over the prior few meetings, signals the end of a tightening cycle.”
* Peter Boockvar, author of the Boock Report: “It’s just about time to call a time-out, which implies the game/fight against inflation is still ongoing, but at least they can sit back and determine ‘the extent to which additional policy firming may be appropriate to return inflation to 2% over time’.”
* Florian Ielpo at Lombard Odier Asset Management: “The Fed is walking a tight line, but it seems to know what it is doing. This should be comforting to markets and investors.  This is probably not the end of a volatility fixed income world, but its main enemy (surprise jumbo hikes) is going away, and this is step 1 to significantly better perspective. From an equity perspective, settling rates is probably a good thing, all the more as the earnings season was still showing a resilient economy.”

Key events this week:
* US initial jobless claims, trade balance, Thursday
* European Central Bank rate decision, followed by ECB President Christine Lagarde’s news conference, Thursday
* US unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.6%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.5% to $1.1053
* The British pound rose 0.7% to $1.2552
* The Japanese yen rose 1.1% to 135.03 per dollar
Cryptocurrencies
* Bitcoin fell 1.3% to $28,321.04
* Ether was little changed at $1,869.67
Bonds
* The yield on 10-year Treasuries declined seven basis points to 3.35%
* Germany’s 10-year yield declined one basis point to 2.25%
* Britain’s 10-year yield advanced three basis points to 3.70%
Commodities
* West Texas Intermediate crude fell 4.9% to $68.14 a barrel
* Gold futures rose 1% to $2,043.60 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Namitha Jagadeesh and Michael Mackenzie.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

All men who have turned out worth anything have had the chief hand in their own education. –Sir Walter Scott, 1771-1832.
Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

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

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

Dear Friends,

Tangents:
May 2, 1945: The Soviet Union announced the fall of Berlin and the Allies announced the surrender of Nazi troops in Italy and parts of Austria. Go to article >
1997: Tony Blair becomes British Prime Minister, ending 18 years of Conservative Party reign.  Blair’s Labor Party achieved a landslide victory in the general elections.  Many of his early fans were bitterly disappointed when he supported the US invasion of Iraq in 2003.

Leonardo da Vinci, d. 1519.
Benjamin Spock, pediatrician, b. 1903.
1611: King James Bible published.

Met Gala: Best looks from the red carpet: Are cat prosthetics the new couture? Take a look at some of the most stunning and over-the-top outfits from “fashion’s biggest night.”

Double hoard of Viking treasure discovered near Harald Bluetooth’s fort in Denmark
Silver coins and jewelry unearthed from a field on the Jutland peninsula in Denmark are revealing new insight into the reign of the Viking king Harald Bluetooth. Read More

In rare attack, 30 orcas ‘badly wounded’ 2 adult gray whales in California
Stunning new video shows a pod of orcas attacking two adult gray whales in California’s Monterey Bay, in a rare case of predation. Read More

Surges of activity in the dying human brain could hint at fleeting conscious experiences
In their last minutes of life, some people’s brains generate a surge of surprisingly organized-looking electrical activity that may reflect consciousness. Read More

A 19th-Century woman predicted global warming. (h/t Mark Gongloff)
PHOTOS OF THE DAY

Taizhou, China: Tourists walk on Ruyi Bridge in the Shenxianju scenic area in Zhejiang province. Photograph: VCG/Getty Images

Kent, UK:  An owl flies over a meadow after a night of hunting for food Photograph: Anadolu Agency/Getty Images

Turgo, Indonesia:  Mount Merapi, a volcanic mountain, spews lava as it erupts. Merapi is known as one of the most active volcanoes in Indonesia, with an eruption occurring every two to five years.
Photograph: Garry Lotulung/NurPhoto/Shutterstoc
Market Closes for May 2^nd, 2023

Market Index	Close	Change
Dow Jones	33684.53	-367.17
		-1.08%
S&P 500	4119.58	-48.29
		-1.16%
NASDAQ	12080.51	-132.09
		-1.08%
TSX	20407.56	-207.54
		-1.01%

International Markets

Market Index	Close	Change
NIKKEI	29157.95	+34.77
		+0.12%
HANG SENG	19933.81	+39.24
		+0.20%
SENSEX	61354.71	+242.27
		+0.40%
FTSE 100*	7773.03	-97.54
		-1.24%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.823	2.970
CND. 30 Year Bond	2.957	3.072
U.S.    10 Year Bond	3.4314	3.5643
U.S. 30 Year Bond	3.7110	3.8063

Currencies

BOC Close	Today	Previous
Canadian $	0.7343	0.7382
US $	1.3618	1.3546
Euro Rate 1 Euro=		Inverse
Canadian $	1.4997	0.6668
US  $	1.1012	0.9081

Commodities

Gold	Close	Previous
London Gold Fix	1982.55	1982.55
Oil
WTI Crude Future	71.66	75.66

Market Commentary:
📈 On this day in 1985, E.F. Hutton pleaded guilty to 2,000 felony counts of mail fraud and wire fraud. It agreed to pay over $10 million in fines and disgorged profits. With its finances crippled and reputation in tatters, the Wall Street brokerage was bought up by Shearson Lehman Brothers in 1987.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 1%, or 207.54 to 20,407.56 in Toronto.
Today, energy stocks led the market lower, as 8 of 11 sectors lost; 158 of 232 shares fell, while 70 rose.
Royal Bank of Canada contributed the most to the index decline, decreasing 2.2%.
Colliers International Group Inc. had the largest drop, falling 9.7%.
Insights
* The index declined 1.4% in the past 52 weeks. The MSCI AC Americas Index lost 1.9% in the same period
* The S&P/TSX Composite is 3.8% below its 52-week high on May 4, 2022 and 14.2% above its low on Oct. 13, 2022
* The S&P/TSX Composite is little changed in the past 5 days and rose 1.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.2 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.29t
* 30-day price volatility rose to 8.64% compared with 8.04% in the previous session and the average of 11.07% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -123.1393| -3.5| 0/40
Financials | -109.0414| -1.8| 5/24
Industrials | -14.3602| -0.5| 12/14
Real Estate | -9.9591| -2.0| 0/21
Utilities | -3.7977| -0.4| 5/10
Communication Services| -2.1151| -0.2| 0/4
Consumer Staples | -0.8853| -0.1| 5/6
Health Care | -0.5731| -0.8| 2/4
Consumer Discretionary| 2.3666| 0.3| 4/10
Information Technology| 3.8047| 0.3| 5/7
Materials | 50.1429| 1.9| 32/18
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | -28.2100| -2.2| -30.1| 3.3
Canadian Natural Resources | -27.9300| -4.5| -43.2| 3.7
Suncor Energy | -18.7500| -4.8| 78.4| -7.4
Wheaton Precious Metals | 9.9240| 4.8| 56.3| 31.4
Agnico Eagle Mines | 11.8000| 4.6| 2.9| 12.6
Barrick Gold | 15.0500| 4.8| 24.9| 16.2
US
By Rita Nazareth
(Bloomberg) — Just a day after Wall Street breathed a sigh of relief with the rescue of First Republic Bank, a selloff in US regional lenders fueled renewed anxiety over financial stability, sinking stocks across the board and spurring a flight to the safest corners of the market.
For many traders, the timing couldn’t be worse.
On the eve of the Federal Reserve decision, multiple volatility halts in PacWest Bancorp and Western Alliance Bancorp were seen as disturbing.
Both shares were down at least 15%.
The financial industry weighed heavily on the S&P 500, which sank almost 2% at one point before trimming losses.
Bearish hedge-fund traders were present in the bout of selling that erupted Tuesday and later prompted long-only investors to sell too, according to a note from John Flood, a partner
at Goldman Sachs Group Inc.
“Wall Street is quickly hitting the sell button as banking turmoil appears it is not going away anytime soon,” said Ed Moya, senior market analyst at Oanda. “Risk appetite did not stand a chance as traders focused on lingering doubts over the regional banks, rising recession odds, and growing risks that the US could default on its debt next month.”
All of these factors combined are only deepening a sense of uneasiness among investors about the Fed’s conundrum.
In addition to the financial strains stemming from bank failures, officials remain caught between stubbornly high inflation and data pointing to an economic downturn — such as Tuesday’s JOLTS record of job openings that fell to lowest in nearly two years.
To make matters worse, there’s brewing angst over the US debt ceiling — which only adds to the whole discussion on whether the Fed should pause after hiking in May to prevent a more severe economic recession.
While swaps are still pricing in a quarter-point Fed rate increase on Wednesday, traders have trimmed their bets on a further rate hike — while amping up wagers on cuts before the year is over.
With all those elements in play, it shouldn’t come as a surprise that bonds got heavily bid Tuesday — especially after the selloff of the previous session.
Two-year yields, which are more sensitive to imminent Fed moves, plunged as much as 21 basis points to below 4%.
Meantime, Treasury bill yields for June topped 5% in the wake of a warning from Treasury Secretary Janet Yellen that the US government could run into debt-ceiling limitations as soon as the start of next month.

Corporate Highlights:
* Morgan Stanley is preparing a fresh round of job cuts amid a renewed focus on expenses as recession fears delay a rebound in dealmaking.
* Uber Technologies Inc. reported earnings that beat analysts’ estimates, showing that consumers continue to spend more on rides and food takeout.
* Pfizer Inc.’s profit and revenue outpaced analysts’ expectations as demand for its pandemic products persisted.
* Marriott International Inc. reported earnings that beat expectations as consumer demand for vacations continued to make up for slower business travel.
* Tesla Inc. has slightly raised prices of its Model 3 sedan and Model Y sports utility vehicle in the US and China, as the electric vehicle pioneer continues to tweak its pricing policy.
Key events this week:
* ADP employment, S&P global US services PMI, ISM services, Wednesday
* Fed Chair Jerome Powell holds news conference following rate decision, Wednesday
* US initial jobless claims, trade balance, Thursday
* European Central Bank rate decision, followed by ECB President Christine Lagarde’s news conference, Thursday
* US unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.9%
* The Dow Jones Industrial Average fell 1.1%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.3% to $1.1007
* The British pound fell 0.2% to $1.2476
* The Japanese yen rose 0.7% to 136.48 per dollar
Cryptocurrencies
* Bitcoin rose 3.8% to $28,722.16
* Ether rose 3.5% to $1,870.91
Bonds
* The yield on 10-year Treasuries declined 15 basis points to 3.42%
* Germany’s 10-year yield declined five basis points to 2.26%
* Britain’s 10-year yield declined five basis points to 3.67%
Commodities
* West Texas Intermediate crude fell 5.4% to $71.56 a barrel
* Gold futures rose 1.7% to $2,026.60 an ounce
This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
The first rule is to keep an untroubled spirit.  The second is to look things in the face and know them for what they are.  Vex not thy spirit at the course of things; they heed not thy vexation.  How ludicrous and outlandish is astonishment at anything that may happen in life. –Marcus Aurelius, 121 AD-180 AD.

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

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

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