Month: October 2023

Dear Friends,

Tangents: Happy Hallowe’en.  Samhain: Wiccan New Year.

October 31, 2011: The world’s official population reached 7 billion on approximately this day.  The United Nations Population Fund designated it as the Day of Seven Billion.

John Keats, poet, b. 1795.
Helmut Newton, photographer, b.1920
Harry Houdini, magician, b.1926.
Dan Rather, TV journalist, b. 1931

Heidi Klum’s most iconic Halloween costumes
Let’s take a look back at Heidi Klum’s best, most elaborate costumes over the years — the earthworm, the ogre, the clones, to name a few.

10 DIY last-minute Halloween costumes for kids and adults
If it seems that your dreams of extravagant costumes are long gone, think again. These last-minute Halloween costumes are easy to make at a moment’s notice.

Apple unveils its fastest iMac and MacBook Pro models yet
The company on Monday introduced a new generation of “scary fast” processors and along with it, a handful of new computers.

Scientists finally discover ‘lost continent’ thought to have vanished without a trace:  Scientists have pieced together the remnants of a continent that broke off from western Australia 155 million years ago and seemingly vanished as it drifted northward toward Southeast Asia. Read More.

PHOTOS OF THE DAY

Sydney, Australia: Carnival Cruise Line’s resident redback, Fangelica, marks Halloween by floating across Sydney Harbour as Carnival Splendor arrives in the city.
Photograph: James D Morgan/Getty Images for Carnival Cruise Lines

Halloween Underground captures Seymour Licht’s 20-year long quest to photograph people dressed up in outlandish costumes against the backdrop of the drab, gritty New York transit system. Originally the project began as a way to document the famously flamboyant Greenwich Village Halloween Parade. But Licht followed his instincts and found himself drawn more to the isolated, solitary, disguised individuals below ground, waiting on the subway platform or inside a train car for their stop to arrive. Halloween Underground: New York Subway Portraits by Seymour Licht is out now

Some are comical or very elaborate and inventive – here we see a patient who lost her brain and the doctor who holds it on a platter
Market Closes for October 31^st, 2023

Market Index	Close	Change
Dow Jones	33052.87	+123.91
		+0.38%
S&P 500	4193.80	+26.98
		+0.65%
NASDAQ	12851.24	+61.76
		+0.48%
TSX	18873.47	+16.70
		+0.09%

International Markets

Market Index	Close	Change
NIKKEI	30858.85	+161.89
		+0.53%
HANG SENG	17112.48	-293.88
		-1.69%
SENSEX	63874.93	-237.72
		-0.37%
FTSE 100*	7321.72	-5.67
		-0.08%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.064	4.037
CND. 30 Year Bond	3.860	3.824
U.S.    10 Year Bond	4.9307	4.8921
U.S. 30 Year Bond	5.0931	5.0485

Currencies

BOC Close	Today	Previous
Canadian $	0.7207	0.7230
US $	1.3875	1.3832

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4673	0.6815
US $	1.0575	0.9456

Commodities

Gold	Close	Previous
London Gold Fix	1997.60	1982.90
Oil
WTI Crude Future	81.02	82.31

Market Commentary:
📈 On this day in 2001, the U.S. Treasury announced it would stop issuing 30-year bonds, then the mainstay of the bond market. Short-term interest rates were lower than those for longer-term bonds. (The opposite is true today, a dynamic known as yield curve inversion.)
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 18,873.47 in Toronto.
Cameco Corp. contributed the most to the index gain and had the largest move, increasing 8.4%.
Today, 117 of 227 shares rose, while 105 fell; 9 of 11 sectors were higher, led by energy stocks.
Insights
* This year, the index fell 2.6%, heading for the worst year since 2022
* This month, the index fell 3.4%
* The index declined 2.8% in the past 52 weeks. The MSCI AC Americas Index gained 7.6% in the same period
* The S&P/TSX Composite is 9.5% below its 52-week high on Feb. 2, 2023 and 1% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 0.6% in the past 5 days and fell 3.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.3 on a trailing basis and 13.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.99t
* 30-day price volatility fell to 13.24% compared with 13.60% in the previous session and the average of 14.15% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 33.3358| 0.9| 33/6
Financials | 13.5262| 0.2| 16/12
Information Technology | 13.4158| 1.0| 8/3
Industrials | 4.7055| 0.2| 16/10
Consumer Staples | 4.2846| 0.5| 8/3
Consumer Discretionary | 1.5187| 0.2| 5/9
Health Care | 0.9357| 1.8| 4/0
Real Estate | 0.7835| 0.2| 12/8
Communication Services | 0.1188| 0.0| 1/2
Utilities | -6.4568| -0.9| 2/13
Materials | -49.4753| -2.2| 12/39
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Cameco | 13.2300| 8.4|n/a | 84.8
RBC | 6.2440| 0.6|n/a | -13.0
Enbridge | 5.9040| 0.9|n/a | -16.0
Franco-Nevada | -7.7430| -3.3|n/a | -8.6
Nutrien | -10.3300| -3.9|n/a | -24.7
First Quantum Minerals | -15.4200| -19.7|n/a | -43.2
US
By Rita Nazareth
(Bloomberg) — Wall Street’s jittery month ended, with the S&P 500 rising on Tuesday — but still notching its longest monthly slide since the onset of the pandemic.
The dollar climbed as the yen hit a 33-year low after the Bank of Japan made only minor changes to its policy settings.
On the eve of the Federal Reserve decision, traders took the latest economic data in stride.
The S&P 500 rebounded in the final day of October, while posting its third straight month of losses. JPMorgan Chase & Co. paced a rally in big banks.
Tesla Inc. bounced back, while Nvidia Corp. finished lower by almost 1%.
In late trading, Advanced Micro Devices Inc. fell on a bearish revenue outlook.
Treasury 10-year yields rose four basis points to 4.93%.
The dollar halted a two-day drop.
The Japanese currency weakened past 151.
The yen will possibly continue to weaken — and the BOJ will be forced to shift to a more “hawkish tone” in the coming weeks, according to Chris Senyek at Wolfe Research.
In economic news, US consumer confidence dropped to a five-month low in October while employment costs unexpectedly accelerated in the third quarter — underscoring a strong labor market that risks keeping inflation above the Fed’s target.
“The Fed is still wary of letting their guard down too early after missing their inflation target badly in the last few years,” said Bill Adams, chief economist for Comerica Bank.
“They are likely to signal tomorrow that they are prepared to raise interest rates again if inflation strays from its current downward trajectory.”
Aside from the highly anticipated Fed decision, bond dealers are expecting the US Treasury to unveil another round of increases this week to its note and bond auctions, though a sizable minority forecast the department will slow the pace of growth to avoid jolting yields higher.
“The main concern on parts of the bond market, particularly the traditional part, is really about the premium you’re getting — the term premium — to go out on the curve,” Russ Koesterich, global allocation fund portfolio manager at BlackRock, told Bloomberg Television. “And that is as much to do with the supply and changing demand dynamics as it does about inflation and the Fed. So you still want to be cautious on long-duration bonds.”
Billionaire investor Stan Druckenmiller said he’s bought “massive” bullish positions in two-year notes, as he’s become more worried about the economy.
Investors are also looking to guidance from the ongoing earnings season to assess the outlook for profits and how companies are able to withstand headwinds like higher rates.
US stocks have slumped this month, as disappointing showings from technology giants including Google parent Alphabet Inc. and Facebook owner Meta Platforms Inc. have weighed on sentiment.

Corporate Highlights:
* Caterpillar Inc. and JetBlue Airways Corp. slipped as their results signaled slowing demand.
* Zillow Group Inc. and other real estate stocks plunged after a Missouri jury found the National Association of Realtors and other industry players guilty of colluding to maintain high brokerage commissions.
* Pfizer Inc.’s sales missed expectations for the quarter as its Covid-19 shot and pill continued to create instability for the drugmaker’s efforts to transition out of the pandemic.
* Sarepta Therapeutics Inc. and Roche Holding AG slumped after the partners’ trial of a gene therapy for Duchenne muscular dystrophy failed to meet the main goal of a study, raising doubts that the treatment will be expanded to older children.
* Pinterest Inc. jumped after the social-networking company reported third quarter results that beat expectations. Analysts are positive about the company’s revenue growth rate and  expanding margins.

Key events this week:
* China Caixin manufacturing PMI, Wednesday
* UK S&P Global / CIPS UK Manufacturing PMI, Wednesday
* US construction spending, ISM Manufacturing, job openings, light vehicle sales, Wednesday
* All Saints holiday in much of Europe, Wednesday
* Treasury quarterly refunding announcement, Wednesday
* Federal Reserve interest rate decision. Fed Chair Jerome Powell holds news conference, Wednesday
* Eurozone S&P Global Eurozone Manufacturing PMI, Thursday
* Bank of England interest rate decision. Governor Andrew Bailey holds news conference, Thursday
* US factory orders, initial jobless claims, productivity, Thursday
* Apple earnings, Thursday
* China Caixin services PMI, Friday
* Eurozone unemployment, Friday
* US unemployment, nonfarm payrolls, Friday
* Canada employment report, Friday
–With assistance from Emily Graffeo and Isabelle Lee.

Have a  lovely evening.

Be magnificent!
As ever,

Carolann
You are neither right nor wrong because the crowd disagrees with you.
You are right because your data and reasoning are right. –Benjamin Graham, 1894-1976.

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.

October 30, 1938: Orson Welles broadcasts his radio play “The War of the Worlds,” causing widespread panic and controversy.

2003: Lebron James made his NBA debut with the Cleveland Cavaliers. Go to article >>

Significant Numbers:
2: hours spent each day on TikTok by American youth between 11 and 17 years old.  A new report suggests teens prefer video-sharing apps because they are passive – users can scroll aimlessly without reading or writing.

95: years since a Norwegian writer last won  the Nobel Prize in literature.  That interlude was broken this year by Norwegian author and playwright Jon Fosse, who focuses on themes including aging, love, and art.

61.48: Degrees (in Fahrenheit) recorded in September, the hottest global average ever measured.  The summer broke records worldwide as well, but experts say September’s record is the bigger climate anomaly.
Sources: Common Sense Media, NY times, Associated Press.

Severe drought reveals more than 100 rock carvings in Amazonian tributary that may be up to 2,000 years old
Engravings of human faces, animals and geometric shapes were spotted on normally submerged rocks after more than half of the Negro River dried up. Read More.

This Florida town full of mediums has been luring believers, the curious and the skeptical for more than a century
Roughly 50 miles from Orlando’s theme parks, the town of Cassadaga is home to a Spiritualist camp where mediums say they can communicate with the dead. Of course, CNN took a trip to see what the chatter is all about.

Five ways to nourish your brain
Nutritional psychiatrist and personal chef Dr. Uma Naidoo served up these tips for eating to improve brain function and mood.

This massive ‘floating’ museum is straight out of science fiction
A building of this size and complexity would typically take years to build, but this impressive museum went from concept to completion in just 12 months.

PHOTOS OF THE DAY

Edinburgh, UK:  The Scott Monument framed by trees in autumn colours in the city’s Princes Street Gardens.  Photograph: Jane Barlow/PA.

Hollywood, California, US:  guests at the Dia De Los Muertos celebration at Hollywood Forever.  Photograph: Emma McIntyre/Getty Images.

Galway, Ireland: Members of the Macnas performance group appear in their annual Halloween parade, called Cnámha La Loba, which was inspired by the legend of a wolf-woman who collected and preserved bones of animals, humans, and gods.  Photograph: Clodagh Kilcoyne/Reuters.
Market Closes for October 30^th, 2023

Market Index	Close	Change
Dow Jones	32928.96	+511.37
		+1.58%
S&P 500	4166.82	+49.45
		+1.20%
NASDAQ	12789.48	+146.47
		+1.16%
TSX	18856.76	+119.37
		+0.64%

International Markets

Market Index	Close	Change
NIKKEI	30696.96	-294.73
		-0.95%
HANG SENG	17406.36	+7.63
		+0.04%
SENSEX	64112.65	+329.85
		+0.52%
FTSE 100*	7327.39	+36.11
		+0.50%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.037	3.978
CND. 30 Year Bond	3.824	3.745
U.S.    10 Year Bond	4.8921	4.8409
U.S. 30 Year Bond	5.0485	5.0133

Currencies

BOC Close	Today	Previous
Canadian $	0.7230	0.7207
US $	1.3832	1.3875

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4683	0.6811
US $	1.0617	0.9419

Commodities

Gold	Close	Previous
London Gold Fix	1982.90	1975.00
Oil
WTI Crude Future	82.31	85.54

Market Commentary:
📈 On this day in 1989, Mitsubishi Estate agreed to pay $846 million for 51% of Rockefeller Center in New York City, setting off mass hysteria among U.S. pundits who claimed America’s patrimony was being scooped up by the Japanese. By 1996, the Mitsubishi affiliate was so financially troubled that it sold Rockefeller Center for less than $400 million.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.6% at 18,856.76 in Toronto.
The move was the biggest since rising 0.8% on Oct. 16 and follows the previous session’s decrease of 0.7%.
Today, financials stocks led the market higher, as 10 of 11 sectors gained; 150 of 227 shares rose, while 75 fell.
Royal Bank of Canada contributed the most to the index gain, increasing 1.5%. BlackBerry Ltd. had the largest increase, rising 6.4%.
Insights
* This year, the index fell 2.7%, heading for the worst year since 2022
* This month, the index fell 3.5%
* The index declined 3.2% in the past 52 weeks. The MSCI AC Americas Index gained 6.2% in the same period
* The S&P/TSX Composite is 9.5% below its 52-week high on Feb. 2, 2023 and 0.9% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 1% in the past 5 days and fell 3.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.2 on a trailing basis and 13.3 times estimated earnings of its members for the coming year * The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.97t
* 30-day price volatility rose to 13.60% compared with 13.33% in the previous session and the average of 14.20% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 76.4202| 1.4| 25/3
Industrials | 37.3151| 1.5| 23/2
Information Technology | 24.8752| 1.9| 10/1
Consumer Staples | 20.6303| 2.5| 11/0
Utilities | 12.9900| 1.8| 15/0
Communication Services | 9.3413| 1.3| 4/1
Consumer Discretionary | 4.7607| 0.7| 8/5
Energy | 4.2421| 0.1| 18/22
Real Estate | 3.3170| 0.8| 19/2
Health Care | 0.3219| 0.6| 4/0
Materials | -74.8428| -3.3| 13/39
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
RBC | 16.1000| 1.5|n/a | -13.5
TD Bank | 13.2100| 1.4|n/a | -12.0
Constellation Software | 11.2200| 3.1|n/a | 33.0
Agnico Eagle Mines | -6.2930| -2.7|n/a | -6.5
Franco-Nevada | -21.7300| -8.5|n/a | -5.5
First Quantum Minerals | -31.2300| -28.5|n/a | -29.3
US
By Rita Nazareth
(Bloomberg) — Stocks rose, Treasuries fell and oil slid 3.5% as Israel’s ground incursion into Gaza appeared less extensive than investors had feared.
The yen climbed on a news report the Bank of Japan may raise a cap on bond yields.
The S&P 500 added 1.2%, the most since August.
Amazon.com Inc. led gains in the beaten-down mega-cap space, though Tesla Inc. bucked that trend — dropping about 5%.
Equities are still on track for their third monthly slump — the longest since March 2020.
Ten-year US yields rose four basis points to 4.88%.
The Treasury cut its estimate for federal borrowing in the quarter to $776 billion.
The dollar dropped.
Oil erased its gains since the war in the Middle East began as Israel faces growing pressure to limit its bombardments to help hostage negotiations, keeping the conflict limited entering its fourth week.
West Texas Intermediate fell as much as 4.3%, with losses accelerating after crude slipped below technical support levels near $82 a barrel.
“Israel moved forces into Gaza over the weekend, but the operation isn’t as large as feared yet — and that’s helping to slightly reduce geopolitical anxiety,” said Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter.
“This week will be a very busy one as we get a Fed decision and important economic/inflation data, as well as the final ‘big’ week of earnings.”
Aside from geopolitical jitters, equities were hit this month by a surge in bond yields and disappointing earnings from some big techs.
Those concerns drove the S&P 500’s 14-day Relative Strength Index below 30 last week — which is seen by some on Wall Street as a sign of an oversold market.
John Stoltzfus, chief investment strategist at Oppenheimer & Co., says he remains constructive on equities.
“We view the three-month corrective occurrence experienced by stocks since August as likely near an end,” he noted.  “Valuations have come down substantially across the sectors and resilience remains the operative word for the US economy.”
Yet Stoltzfus, a long-time stock market bull, lowered his year-end forecast for the US equity benchmark to 4,400 from 4,900, previously the highest among forecasters tracked by Bloomberg.
The gauge closed at 4,166.78 on Monday.
He says there’s not enough time for the index to reach his previously projected level as geopolitical risk and interest-rate worries afflict equities.

Earnings Bets
Wall Street expectations for double-digit earnings growth are “divorced from the risks” posed by tightening financial conditions and rising geopolitical tensions, according to JPMorgan Chase & Co.’s Marko Kolanovic.
Investors hoping for a boost to stocks by the end of the year will be disappointed, according to Morgan Stanley’s Michael Wilson.
“Chances of a fourth-quarter rally have fallen considerably,” said Wilson, who was once again named as the best portfolio strategist by the latest Institutional Investor survey. “Narrowing breadth, cautious factor leadership, falling earnings revisions and fading consumer and business confidence tell a different story than the consensus, which sees a rally into year-end.”
US blue-chip companies unleashed a wave of bond sales on Monday as borrowers look to sell new debt in a week jam-packed with bond auctions, central bank meetings and fresh economic data.
Morgan Stanley, Hyundai Capital America and Bristol-Myers Squibb Co. were among 12 high-grade issuers in the market, marking the busiest day for issuance since companies brought 20 deals on Sept. 5 after the Labor Day holiday, data compiled by Bloomberg News shows.

Corporate Highlights:
* McDonald’s Corp. sales and profits beat expectations in the third quarter thanks to higher prices and movie-inspired ads, but US customer traffic dipped for the first time this year.
* Western Digital Corp. will split into two separate, publicly traded companies after talks to merge with Kioxia Holdings Corp. fell apart.
* Broadcom Inc. and software maker VMware Inc. said their $61 billion merger is on track to close before a November deadline, working to reassure investors while China drags out its review of the deal.
* HSBC Holdings Plc announced a fresh buyback program and hinted at the potential for further returns to investors despite announcing profits for the third-quarter that missed market expectations.
* General Motors Co. reached a tentative contract agreement with the United Auto Workers union, according to people familiar with the matter, bringing an end to a six-week-old strike that had upended US automobile production and cost the industry billions of dollars.
* Ford Motor Co.’s tentative agreement to end the six-week strike by the United Auto Workers includes $8.1 billion in investments at both internal combustion and electric vehicle plants, as well as record raises.

Key events this week:
* China non-manufacturing PMI, manufacturing PMI, Tuesday
* Bank of Japan interest rate decision, Tuesday
* Eurozone CPI, GDP, Tuesday
* US Conference Board consumer confidence, employment cost index, Tuesday
* China Caixin manufacturing PMI, Wednesday
* UK S&P Global / CIPS UK Manufacturing PMI, Wednesday
* US construction spending, ISM Manufacturing, job openings, light vehicle sales, Wednesday
* All Saints holiday in much of Europe, Wednesday
* Treasury quarterly refunding announcement, Wednesday
* Federal Reserve interest rate decision. Fed Chair Jerome Powell holds news conference, Wednesday
* Eurozone S&P Global Eurozone Manufacturing PMI, Thursday
* Bank of England interest rate decision. Governor Andrew Bailey holds news conference, Thursday
* US factory orders, initial jobless claims, productivity, Thursday
* Apple earnings, Thursday
* China Caixin services PMI, Friday
* Eurozone unemployment, Friday
* US unemployment, nonfarm payrolls, Friday
* Canada employment report, Friday
–With assistance from Vildana Hajric.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
All bad precedents begin with justifiable measures. –Julius Caesar, 100 BC-44 BC.

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

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

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

Dear Friends,

Tangents: Happy Friday.  Full moon this weekend, rising tomorrow night – also known as the “Hunter’s Moon.”

Just back last night from an investment conference in NYC which was full of important and useful insights.  AI features hugely as the topic of conversation.  It is being regarded as an inflection point in human evolution that is going to have tremendous impact on our human story, equivalent to the Gutenberg press, the industrial revolution and the internet.  It is amazing how rapidly the AI story is progressing.
This is the conference that I refer to as the Taylor Swift concert equivalent in the world of finance/investing.  Presenters included heavyweights, Stanley Druckenmiller, Steve Cohen, Paul Jones, Ken Griffin, Larry Robbins, Asam Altman (innovator of ChatGPT) and so on…

October 27, 1904: The first rapid transit subway opened, in New York City.  Go to article >>

Theodore Roosevelt, b.1858.
Dylan Thomas, b.1914.
Sylvia Plath, b. 1932.

October 27, 1962: Black Saturday during the Cuban Missile Crises: An American spy plane is shot down over Cuba and the navy drops warning depth charges on Soviet submarines.

Cold War satellite images reveal nearly 400 Roman forts in the Middle East
The photos, taken in the 1960s and 1970s by the first spy satellites, reveal that the eastern border of the Roman Empire was a place of vibrant trade. Read More.

Rare cross-shaped reliquary unearthed from medieval knight’s home in Poland:  Archaeologists in Poland have discovered the remnants of a medieval knight’s residence, along with numerous artifacts.  Full Story: Live Science (10/26).

Rare lake forms in Death Valley
There’s still time to see a rare oasis that formed in Death Valley. Read More.

Taylor Swift is now a billionaire, Bloomberg says.  Swift’s total net worth is now at $1.1 billion, Bloomberg said, thanks to a record-breaking Eras tour that helped boost the US economy over the summer.

How 2023 became the year of the lab-grown diamond
Structurally identical to mined stones, sales of man-made diamonds were up 38% in 2022 to around $12 billion. Should legacy jewelry brands be worried?

‘Last’ Beatles song featuring John Lennon is ‘quite emotional’
Paul McCartney and Ringo Starr, the last two living Beatles, have “come together” to finish a song that the late John Lennon wrote and recorded in 1970 called “Now and Then.”

PHOTOS OF THE DAY

New York, US:  Guests attend the opening night of the Balloon Museum’s immersive contemporary art exhibition Let’s Fly at Pier 36.  Photograph: John Angelillo/UPI/Shutterstock.

London, UK:  Tjeerd Bakker, the senior horological conservator at Buckingham Palace, changes the time on a mantel clock dating from 1765-85 created by François Louis Godon in the Silk Tapestry Room.
Photograph: Aaron Chown/PA

Tlaxcala, Mexico:  People dressed as ghosts prepare for the Day of the Dead festival.  Photograph: Essene Hernandez/Eyepix Group/Shutterstock.
Market Closes for October 27^th, 2023

Market Index	Close	Change
Dow Jones	32417.59	-366.71
		-1.12%
S&P 500	4117.37	-19.86
		-0.48%
NASDAQ	12643.01	+47.40
		+0.38%
TSX	18737.39	-137.92
		-0.73%

International Markets

Market Index	Close	Change
NIKKEI	30991.69	+389.91
		+1.27%
HANG SENG	17398.73	+354.12
		+2.08%
SENSEX	63782.80	+634.65
		+1.00%
FTSE 100*	7291.28	-63.29
		-0.86%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.978	4.002
CND. 30 Year Bond	3.745	3.759
U.S.    10 Year Bond	4.8409	4.8445
U.S. 30 Year Bond	5.0133	4.9861

Currencies

BOC Close	Today	Previous
Canadian $	0.7207	0.7236
US $	1.3875	1.3819

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4658	0.6822
US $	1.0565	0.9466

Commodities

Gold	Close	Previous
London Gold Fix	1975.00	1983.30
Oil
WTI Crude Future	85.54	83.21

Market Commentary:
📈 On this day in 1923, the greatest bull market of the 20th century began after the Dow Jones Industrial Average closed at 85.76. It lasted nearly 6 years and lifted stocks by 344.5%. Then, beginning in 1929, the Great Crash pulled stocks down by 89%, erasing nearly all these gains.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the eighth day, dropping 0.7%, or 137.92 to 18,737.39 in Toronto.
The index dropped to the lowest closing level in at least a year.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.6%.
Brookfield Infrastructure Partners LP had the largest drop, falling 4.8%.
Today, 138 of 227 shares fell, while 85 rose; 10 of 11 sectors were lower, led by financials stocks.
Insights
* This year, the index fell 3.3%, heading for the worst year since 2022
* This month, the index fell 4.1%
* So far this week, the index fell 2%, heading for the biggest decline since the week ended Sept. 22
* The index declined 3.2% in the past 52 weeks. The MSCI AC Americas Index gained 7.3% in the same period
* The S&P/TSX Composite is at its 52-week low and 10.1% below its high on Feb. 2, 2023
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.2 on a trailing basis and 13.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.6% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.99t
* 30-day price volatility fell to 13.33% compared with 13.39% in the previous session and the average of 14.09% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -87.7406| -1.6| 3/25
Energy | -26.5279| -0.7| 16/21
Utilities | -12.9823| -1.7| 0/15
Consumer Discretionary | -11.9448| -1.7| 2/12
Information Technology | -8.8979| -0.7| 2/9
Communication Services | -8.5992| -1.2| 1/4
Consumer Staples | -7.8769| -0.9| 1/10
Real Estate | -3.8626| -0.9| 2/18
Industrials | -1.8671| -0.1| 13/13
Health Care | -0.8463| -1.6| 0/4
Materials | 33.2550| 1.5| 45/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
RBC | -16.9800| -1.6|n/a | -14.8
TD Bank | -16.0400| -1.6|n/a | -13.1
Enbridge | -10.1800| -1.6|n/a | -17.7
Wheaton Precious Metals | 3.8920| 2.1|n/a | 14.1
Agnico Eagle Mines | 7.1920| 3.2|n/a | -3.9
Franco-Nevada | 7.3810| 3.0|n/a | 3.3
US
By Rita Nazareth
(Bloomberg) — A rebound in stocks sputtered, with the S&P 500 extending a slide from its July peak to 10% — and entering a “correction.”
Oil topped $85 and gold hit $2,000 amid the latest geopolitical developments.
Volatility resurfaced on news that Israeli forces are expanding activity in Gaza.
The US stock benchmark saw its worst week in a month.
The KBW Bank Index slid to the lowest since September 2020.
Amazon.com Inc. and Intel Corp. rallied on earnings.
Treasury two-year yields retreated as traders took a hot inflation measure in stride.
The dollar fell.
US stocks are in their third month of declines after bond yields soared on worries about a persistently hawkish Federal Reserve.
Concern about the war in the Middle East as well as an underwhelming corporate earnings season have dented risk appetite more recently.
“The aggressive market selloff has been driven largely by technical factors, as fundamentals remain solid,” said Mark Hackett, chief of investment research at Nationwide. “This is fitting, given the strong bounce since last October was also largely technical. Signs of oversold conditions and supportive seasonality should lead to a bounce, though sentiment will need to shift, which could take a catalyst or a period of
capitulation.”
More than two-thirds of stocks for companies in the S&P 500 index are trading below their 200-day moving averages, according to an analysis by Bloomberg Intelligence.
That’s a sign of widespread pain for stock prices, after many companies have posted lackluster earnings amid interest rates that are high and bond yields that keep creeping up.
US near-term inflation expectations rose in October to a five-month high as they feared higher prices at the gas pump, reinforcing downbeat views on the economy.
The Fed’s preferred measure of underlying inflation accelerated to a four-month high in September and consumer spending picked up, keeping the door open to another interest-rate hike in the months ahead. 

Corporate Highlights:
* Tesla Inc. raised the price of its Model Y Performance sport-utility vehicle by around $2,000 in China on Friday, according to its local website, reversing a reduction made only in August.
* Walt Disney Co. is once again overhauling its movie release calendar, delaying three films that had previously been scheduled for next year and removing another three from the line-up altogether.
* Ford Motor Co. said it fell short of third-quarter earnings expectations, citing higher costs and lower quality, a day after it won labor peace through a tentative contract with the United Auto Workers.
* Exxon Mobil Corp. and Chevron Corp. posted disappointing profits amid weak performances by their oil-refining and chemical businesses.
* Chipotle Mexican Grill Inc. jumped after the restaurant chain reported third-quarter comparable sales that beat estimates.
* AutoNation Inc., one of the biggest car dealership chains in the US, posted third-quarter profit and revenue that beat expectations on rising new car sales and growth in its aftermarket repair business.
* AbbVie Inc. raised its profit outlook for this year and next as demand for newer biologic drugs Skyrizi and Rinvoq helped fill the gap left by falling Humira sales.

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 rose 0.5%
* The Dow Jones Industrial Average fell 1.1%
* The MSCI World index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro was little changed at $1.0570
* The British pound was little changed at $1.2121
* The Japanese yen rose 0.6% to 149.56 per dollar
Cryptocurrencies
* Bitcoin fell 1.4% to $33,702.26
* Ether fell 1.3% to $1,774.32
Bonds
* The yield on 10-year Treasuries declined one basis point to 4.83%
* Germany’s 10-year yield declined three basis points to 2.83%
* Britain’s 10-year yield declined five basis points to 4.54%
Commodities
* West Texas Intermediate crude rose 2.3% to $85.16 a barrel
* Gold futures rose 1% to $2,016.60 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Sagarika Jaisinghani.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann
We shall find peace.  We shall hear the angels, we shall see the sky sparkling with diamonds. –Anton Chekov, 1860-1904.

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.
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 26,1902: Elizabeth Cady Stanton, an American pioneer in the fight for voting rights for women, died.
In 1984: “Baby Fae,” a newborn with a severe heart defect, was given the heart of a baboon in an experimental transplant, in Loma Linda, Calif. She lived 21 days with the animal heart.
In 2005: 17 Alberta oil field workers shared a $54 million Lotto 6-49 lottery win. Go to article >>

2,000-year-old decorated Roman sandal unearthed in Spain
Archaeologists in Spain used a pulley system to reach the bottom of a well, where they found a 2,000-year-old Roman sandal and other artifacts.

Scientists found a way for two black holes to orbit each other forever without colliding
Contrary to conventional wisdom, a pair of black holes could exist in perfect pairs without leading to a cataclysmic merger, new research suggests. All it takes is a dose of cosmic expansion

In a 1st, AI neural network captures ‘critical aspect of human intelligence’
Scientists have demonstrated that an AI system called a neural network can be trained to show “systematic compositionality,” a key part of human intellect.

PHOTOS OF THE DAY

Monterrey, Mexico
People visit an art installation named Altar Monumental, created for the annual Day of the Dead festivities in an attempt to set a Guinness World Record for the largest altar of the dead in history
Photograph: Daniel Becerril/Reuters

The bigger picture category student winner: Viktor Nunes Peinemann
As waves crash over a shallow reef in Kimbe Bay, schools of Chromis dart among Acropora corals. The water movement is strong enough that even the sturdy corals bend and sway. But sights like this are becoming rarer and rarer as Acropora corals throughout the Indo-Pacific have suffered high mortality in recent years

​​​​​​​Necks, please
A colony of mute swans at the Abbotsbury Swannery in Dorset. There are around 600 birds at the swannery, which was established by Benedictine monks.
Photograph: Stephen Smith
Market Closes for October 26^th, 2023

Market Index	Close	Change
Dow Jones	32784.30	-251.63
		-0.76%
S&P 500	4137.23	-49.54
		-1.18%
NASDAQ	12595.61	-225.61
		-1.76%
TSX	18875.31	-72.54
		-0.38%

International Markets

Market Index	Close	Change
NIKKEI	30601.78	-668.14
		-2.14%
HANG SENG	17044.61	-40.72
		-0.24%
SENSEX	63148.15	-900.91
		-1.41%
FTSE 100*	7354.57	-59.77
		-0.81%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.002	4.118
CND. 30 Year Bond	3.759	3.881
U.S.    10 Year Bond	4.8445	4.9549
U.S. 30 Year Bond	4.9861	5.0860

Currencies

BOC Close	Today	Previous
Canadian $	0.7236	0.7245
US $	1.3819	1.3803

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4597	0.6851
US $	1.0563	0.9467

Commodities

Gold	Close	Previous
London Gold Fix	1983.30	1963.65
Oil
WTI Crude Future	83.21	86.04

Market Commentary:
📈 On this day in 1929, the Harvard Economic Society declared that “despite its severity, we believe that the slump in stock prices will prove an intermediate movement and not the precursor of a business depression such as would entail prolonged further liquidation.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the seventh day, dropping 0.4%, or 72.54 to 18,875.31 in Toronto.
The index dropped to the lowest closing level in at least a year.
Waste Connections Inc. contributed the most to the index decline, decreasing 6.6%.
Celestica Inc. had the largest drop, falling 10.3%.
Today, 124 of 227 shares fell, while 97 rose; 7 of 11 sectors were lower, led by information technology stocks.
Insights
* This year, the index fell 2.6%, heading for the worst year since 2022
* This month, the index fell 3.4%
* So far this week, the index fell 1.3%
* The index declined 2.1% in the past 52 weeks. The MSCI AC Americas Index gained 7.3% in the same period
* The S&P/TSX Composite is at its 52-week low and 9.4% below its high on Feb. 2, 2023
* The S&P/TSX Composite is down 2.4% in the past 5 days and fell 3.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.3 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.01t
* 30-day price volatility fell to 13.39% compared with 14.33% in the previous session and the average of 14.07% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | -38.0365| -2.8| 0/11
Industrials | -35.7403| -1.4| 9/17
Materials | -19.1806| -0.8| 19/31
Energy | -17.2347| -0.5| 19/18
Consumer Discretionary | -3.9347| -0.6| 4/10
Consumer Staples | -2.6126| -0.3| 3/8
Health Care | -0.5140| -1.0| 1/3
Real Estate | 0.5440| 0.1| 8/13
Communication Services | 0.8612| 0.1| 3/2
Utilities | 6.4172| 0.9| 10/4
Financials | 36.8626| 0.7| 21/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Waste Connections | -22.5900| -6.6|n/a | -1.4
Shopify | -19.8000| -3.5|n/a | 37.3
Constellation | | | |
Software | -9.2500| -2.4|n/a | 31.1
TD Bank | 6.2860| 0.6|n/a | -11.7
Bank of Montreal | 6.4270| 1.2|n/a | -13.5
RBC | 10.7300| 1.0|n/a | -13.4
US
By Rita Nazareth
(Bloomberg) — A rebound in tech giants faded in late hours as Amazon.com Inc. whipsawed after reporting earnings.
Intel Corp. climbed after its results, while Ford Motor Co. sank on disappointing numbers.
A $192 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) was little changed in late trading.
The tech-heavy sank nearly 2% Thursday.
The selloff also put the S&P 500 on the brink of a “correction” — with the gauge down almost 10% from its July peak.
Treasury yields fell as economic data suggesting inflation pressures continue to dissipate despite solid growth kept traders betting on a Federal Reserve pause.
Traders also kept a close eye on geopolitical developments, with Israel’s military saying it killed Hamas’s deputy head of intelligence, who it said was responsible for helping plan the Oct. 7 attacks.
The army overnight also made a limited ground raid into northern Gaza. Oil dropped below $84 a barrel.
The euro edged lower as the European Central Bank kept rates unchanged as expected.
Two-year yields, which are more sensitive to imminent Fed moves, dropped eight basis points to 5.04%.
Swap contracts project 32% odds for one more Fed hike in the current tightening cycle.
Treasury Secretary Janet Yellen said that the surge in longer-term bond yields in recent months is a reflection of a strong economy and expectations that interest rates may have to stay higher for longer.
A survey conducted by 22V Research shows that 71% of the investors polled don’t think the 10-year yield — which recently hit 5% — has peaked.
They expect it to keep increasing, with the median expectation for the peak at 5.5%.
Nineteen percent see the yield peaking at or above 6%.
“The stock market isn’t ready to rally until bond yields are sharply lower, which probably won’t happen until we see inflation a lot closer to the Fed’s target,” said Edward Moya, senior market analyst for the Americas at Oanda.
The US economy grew at the fastest pace in nearly two years last quarter amid a surge in consumer spending.
A closely watched measure of underlying inflation cooled more than expected to the slowest pace since 2020.

Corporate Highlights:
* Mastercard Inc. fell after the payments network predicted revenue growth for the coming quarter that undercut analyst forecasts, even as consumers continued to weather rising rates with robust spending on their cards.
* Western Digital Corp. sank after deal negotiations with Kioxia Holdings Corp. broke down, quashing hopes for a combination of their flash memory businesses.
* Hasbro Inc. slid after reporting quarterly results that missed Wall Street estimates on sales and earnings and lowering its annual revenue forecast due to a softer toy market heading into the holiday season.
* Harley-Davidson Inc. sank as profit missed estimates and sales plunged amid elevated borrowing costs in the US and economic weakness around the globe.
* Comcast Corp. retreated after reporting drops in broadband and cable subscribers, and predicting more losses to come.
* Hertz Global Holdings Inc. slid after missing profit estimates as it grapples with higher depreciation costs for its vehicles, which were unusually low in 2022.
* International Business Machines Corp. gained as it reported better-than-expected sales and affirmed its full-year outlook, suggesting the company’s focus on software and hybrid cloud services is paying off.
* First Citizens Bancshares Inc., the regional lender that acquired Silicon Valley Bank when it failed in March, said deposits beat estimates helped by growth in its direct bank channel. The shares rallied.
* Bunge Ltd. climbed after raising its earnings outlook after posting third-quarter profits that blew up beyond the highest estimates.

Key events this week:
* China industrial profits, Friday
* Japan Tokyo CPI, Friday
* US PCE deflator, personal spending and income, University of Michigan consumer sentiment, Friday
* Exxon Mobil earnings, 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 1.9%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 1.1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0556
* The British pound was little changed at $1.2121
* The Japanese yen fell 0.1% to 150.42 per dollar
Cryptocurrencies
* Bitcoin fell 1.8% to $34,048.4
* Ether rose 0.2% to $1,791.9
Bonds
* The yield on 10-year Treasuries declined 11 basis points to 4.84%
* Germany’s 10-year yield declined three basis points to 2.86%
* Britain’s 10-year yield declined one basis point to 4.60%
Commodities
* West Texas Intermediate crude fell 2.2% to $83.48 a barrel
* Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee and Michael Mackenzie.

Have a wonderful evening everyone.

Be magnificent!
As ever,

Shabnam
“It’s better to look ahead and prepare, than to look back and regret.” — Jackie Joyner-Kersee

Shabnam Mohammadpourmarzbali
Assistant to Carolann Steinhoff
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:
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

Humans and Neanderthals mated 250,000 years ago, much earlier than thought
A comparison of the genomes of a Neanderthal who lived 120,000 years ago in Siberia with those from modern humans in sub-Saharan Africa has revealed insight into the migratory and interbreeding history of both species.

Collapse of the West Antarctic ice sheet is ‘unavoidable,’ study finds
British Antarctic Survey researchers have found that the rate at which ice is melting and contributing to sea level rise will accelerate in the next century, regardless of actions to limit greenhouse gas emissions.

How to watch the full ‘Hunter’s Moon’ get eclipsed this weekend
October’s full ‘Hunter’s Moon’ will drift into Earth’s shadow for a partial eclipse on Oct. 28.

Ancient face carvings exposed along Amazon river
Human faces sculpted into stone up to 2,000 years ago have appeared on a rocky outcropping along the Amazon River amid decreasing water levels.

Scientists detect fastest-ever fast radio bursts, lasting just 10 millionths of a second
Astronomers have captured ultrafast radio bursts from 3 billion light-years away for the first time ever. Read more.

PHOTOS OF THE DAY

Cheshire, UK
The Lovell Telescope at Jodrell Bank in fog at sunrise on the Cheshire plain. After exceptional rainfall last weekend, which led to flooding in some areas, low temperatures are bringing on autumnal weather
Photograph: Christopher Furlong/Getty Images

Staffordshire, UK
The sun rises over Mow Cop Castle
Photograph: Carl Recine/Reuters

​​​​​​​Hau Giang, Vietnam
Vendors sell vegetables at Vi Thanh market
Photograph: Nhac Nguyen/AFP/Getty Images
Market Closes for October 25^th, 2023

Market Index	Close	Change
Dow Jones	33035.93	-105.45
		-0.32%
S&P 500	4186.77	-60.91
		-1.43%
NASDAQ	12821.23	-318.65
		-2.43%
TSX	18947.85	-38.64
		-0.20%

International Markets

Market Index	Close	Change
NIKKEI	31269.92	+207.57
		+0.67%
HANG SENG	17085.33	+93.80
		+0.55%
SENSEX	64049.06	-522.82
		-0.81%
FTSE 100*	7414.34	+24.64
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.118	4.012
CND. 30 Year Bond	3.881	3.766
U.S.    10 Year Bond	4.9549	4.8229
U.S. 30 Year Bond	4.0860	4.9381

Currencies

BOC Close	Today	Previous
Canadian $	0.7245	0.7277
US $	1.3803	1.3742

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4585	0.6856
US $	1.0566	0.9464

Commodities

Gold	Close	Previous
London Gold Fix	1963.65	1973.00
Oil
WTI Crude Future	86.04	84.39

Market Commentary:
📈 On this day in 1929, following the so-called “Black Thursday” panic, the New York Times carried a full-page ad sponsored by 35 top brokerage firms, urging the public to buy stocks. The Dow Jones Industrial Average rose 0.6% to close at 301.22.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the sixth day, dropping 0.2%, or 38.64 to 18,947.85 in Toronto.
The index dropped to the lowest closing level in at least a year.
Today, information technology stocks led the market lower, as 6 of 11 sectors lost; 135 of 227 shares fell, while 90 rose.
Shopify Inc. contributed the most to the index decline, decreasing 6.9%. Dye & Durham Ltd. had the largest drop, falling 11.4%.
Insights
* This year, the index fell 2.3%, heading for the worst year since 2022
* This month, the index fell 3%
* The index declined 0.8% in the past 52 weeks. The MSCI AC Americas Index gained 7.9% in the same period
* The S&P/TSX Composite is 9.1% below its 52-week high on Feb. 2, 2023 and 0.5% above its low on Oct. 4, 2023
* The S&P/TSX Composite is down 2.6% in the past 5 days and fell 4.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.4 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.01t
* 30-day price volatility fell to 14.33% compared with 14.41% in the previous session and the average of 14.09% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | -54.2909| -3.8| 0/11
Financials | -24.9423| -0.4| 15/13
Materials | -15.6995| -0.7| 10/41
Real Estate | -6.7385| -1.6| 0/21
Communication Services | -3.1171| -0.4| 1/4
Health Care | -1.8249| -3.3| 0/4
Consumer Discretionary | 0.1552| 0.0| 3/11
Utilities | 1.5343| 0.2| 10/4
Consumer Staples | 6.1895| 0.7| 6/5
Industrials | 15.8796| 0.6| 7/19
Energy | 44.2098| 1.2| 38/2
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Shopify | -41.5200| -6.9|n/a | 42.3
Brookfield Corp | -13.7300| -3.2|n/a | -3.5
Constellation | | | |
Software | -4.2760| -1.1|n/a | 34.3
Canadian National | 6.5140| 1.1|n/a | -8.9
Waste Connections | 8.9110| 2.7|n/a | 5.6
Canadian Natural | | | |
Resources | 9.6950| 1.5|n/a | 17.9
US
By Rita Nazareth
(Bloomberg) — A giant exchange-traded fund tracking the Nasdaq 100 (QQQ) whipsawed in late hours as a post-earnings rally in Meta Platforms Inc. failed to spur a rebound after the tech-heavy gauge’s worst slide of 2023.
Wall Street grappling with a batch of corporate earnings sent stocks lower on Wednesday amid heightened Treasury volatility, with traders also keeping an eye on the latest geopolitical developments.
The S&P 500 dropped about 1.5%.
The Nasdaq 100 slid 2.5% as Google’s parent Alphabet Inc.’s disappointing cloud figures outweighed Microsoft Corp.’s sales.
A gauge of chipmakers slid 4.1% on Texas Instruments Inc.’s bearish forecasts.
“The question now turns to earnings as earnings drive stock prices,” said Howard Ward, chief investment officer of Growth Equities and portfolio manager at Gabelli Funds. “This is where the rubber meets the road. A recession would result in higher unemployment, less consumer spending, slower gross domestic product growth and lower earnings, which implies lower stock prices.”
Longer-dated US yields outpaced those in shorter-maturity bonds — a process known as “bear steepening.”
Economists often look to the Treasury market for clues about when a recession might come. Specifically, they examine the so-called yield curve. When it’s “inverted,” as it has been since about mid-2022, that almost always means a recession is looming. But by mid-2023, the curve began to “disinvert” – or steepen in industry parlance — in a way that raised the question of whether the US had managed to dodge a recession or whether one was about to start.
Treasury yields surged Wednesday after poor demand for a sale of five-year notes deepened anxiety about auction size increases expected to be announced next week.
Yields were already rising before the auction, reinforced by stronger-than- expected September new home sales data.
Thirty-year US yields climbed 15 basis points to 5.09%, while those on two-year notes were little changed at 5.12%.
The yield on 10-year bonds advanced 13 basis points to 4.95%.
Elsewhere, the yen dropped to its weakest level this year against the dollar as the wide yield gap with the US continued to weigh on the Japanese currency.
The Bank of Canada kept interest rates unchanged for a second straight meeting, but left the door open to more tightening even as officials forecast weaker economic growth.
The loonie declined.
Oil topped $85 a barrel after a news report that Israel agreed to delay the ground invasion of Gaza to protect US troops.

Corporate Highlights:
* Boeing Co. maintained its cash-flow target and said it’s moving ahead with higher aircraft output, reassuring investors even as manufacturing defects forced the company to lower its annual delivery goal for the top-selling 737 model.
* Apple Inc. raised prices of its Apple TV+, Arcade gaming and News+ subscription services on Wednesday, in a move that could generate more revenue for its increasingly key services division.
** It’s also planning an end-to-end overhaul of its Air Pods lineup, refreshing a product category that’s emerged as one of the company’s biggest sellers.
* Visa Inc. and Mastercard Inc. are facing a new round of regulatory challenges, with the Federal Reserve proposing lower caps on the fees banks and payment companies can charge merchants when consumers swipe their debit cards at checkout.
* T-Mobile US Inc. posted third-quarter profits that beat estimates, buoyed by better-than-expected mobile customer gains.
* Short-seller Carson Block said he’s shorting Sunrun Inc. again, part of a short theme he calls the “ESG hustle.”
** Sunrun says it fully stands behind its reporting of metrics, including subscribers, in response to the short report from Muddy Waters released earlier Wednesday.
* Deutsche Bank AG said it will accelerate payouts to shareholders, seeking to lift the lender’s stock and close a valuation gap with peers. It’s also starting another round of job cuts.
* Worldline SA sent a fresh shockwave through Europe’s fintech sector on Wednesday, cutting its sales outlook and warning of economic challenges that pushed its stock down by more than half.

Key events this week:
* European Central Bank interest rate decision; President Christine Lagarde holds news conference, Thursday
* US wholesale inventories, GDP, US durable goods, initial jobless claims, pending home sales, Thursday
* Intel, Amazon earnings, Thursday
* China industrial profits, Friday
* Japan Tokyo CPI, Friday
* US PCE deflator, personal spending and income, University of Michigan consumer sentiment, Friday
* Exxon Mobil earnings, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.5%
* The Dow Jones Industrial Average fell 0.3%
* The MSCI World index fell 1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.2% to $1.0568
* The British pound fell 0.4% to $1.2113
* The Japanese yen fell 0.1% to 150.06 per dollar
Cryptocurrencies
* Bitcoin rose 3.3% to $34,761.32
* Ether rose 1.1% to $1,790.6
Bonds
* The yield on 10-year Treasuries advanced 12 basis points to 4.94%
* Germany’s 10-year yield advanced six basis points to 2.89%
* Britain’s 10-year yield advanced seven basis points to 4.61%
Commodities
* West Texas Intermediate crude rose 1.8% to $85.26 a barrel
* Gold futures rose 0.3% to $1,992 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Edward Dufner.

Have a wonderful evening everyone.

Be magnificent!
As ever,

Shabnam
“The measure of who we are is what we do with what we have.”– Vince Lombardi

Shabnam Mohammadpourmarzbali
Assistant to Carolann Steinhoff
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:
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

Webb telescope spots never-before-seen feature in Jupiter’s atmosphere
Jupiter was one of the first targets observed by the James Webb Space Telescope when it initially turned its infrared gaze on the universe in July 2022. After capturing stunning images that surpassed the expectations of astronomers, the space observatory has now revealed a never-before-seen feature in the gas giant’s atmosphere. Read more.

Jurassic pliosaur ‘megapredator’ was a giant ‘sea murderer’
The earliest pliosaur ‘megapredator’ helped rule the oceans 170 million years ago during the age of dinosaurs

Amazon’s ‘flying rivers’ of vapor are drying up in an unprecedented drought. Here’s how to save them.
A record drought, combined with a strong El Niño, is wreaking havoc on the Amazon. If steps aren’t taken to curb illegal mining and deforestation, the ecosystem could collapse.

‘Ghost’ of ancient river-carved landscape discovered beneath Antarctica
Satellite data have revealed an ancient landscape that may have escaped erosion and been preserved beneath the East Antarctic ice sheet since the continent froze over 34 million years ago.

PHOTOS OF THE DAY

New York, US
A woolly mammoth (Mammuthus primigenius) is installed as part of the Secret World of Elephants exhibition at the American Museum of Natural History
Photograph: Timothy A Clary/AFP/Getty Images

Kent, UK
Sweet chestnuts on a bed on leaves on a forest floor near Ashford
Photograph: Gareth Fuller/PA

Volunteer pickers during the grape harvest season
Photograph: Adam Vaughan/EPA
Market Closes for October 24^th, 2023

Market Index	Close	Change
Dow Jones	33141.38	+204.97
		+0.62%
S&P 500	4247.68	+30.64
		+0.73%
NASDAQ	13139.88	+121.55
		+0.93%
TSX	18986.49	-60.25
		-0.32%

International Markets

Market Index	Close	Change
NIKKEI	31062.35	+62.80
		+0.20%
HANG SENG	16991.53	-180.60
		-1.05%
SENSEX	Market Closed	N.A.
FTSE 100*	7389.70	+14.87
		+0.20%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.012	4.010
CND. 30 Year Bond	3.766	3.775
U.S.    10 Year Bond	4.8229	4.8460
U.S. 30 Year Bond	4.9381	5.0006

Currencies

BOC Close	Today	Previous
Canadian $	0.7277	0.7304
US $	1.3742	1.3691

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4554	0.6871
US $	1.0591	0.9442

Commodities

Gold	Close	Previous
London Gold Fix	1973.00	1988.50
Oil
WTI Crude Future	84.39	86.39

Market Commentary:
📈 On this day in 1978: President Jimmy Carter signed the Airline Deregulation Act, freeing U.S. air travel from price controls and route restrictions.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the fifth day, dropping 0.3%, or 60.25 to 18,986.49 in Toronto.
The index dropped to the lowest closing level in at least a year.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 2.2%.
Teck Resources Ltd. had the largest drop, falling 8.9%.
Today, 104 of 227 shares fell, while 118 rose; 5 of 11 sectors were lower, led by financials stocks.
Insights
* This year, the index fell 2.1%, heading for the worst year since 2022
* This month, the index fell 2.8%
* The index advanced 0.4% in the past 52 weeks. The MSCI AC Americas Index gained 11% in the same period
* The S&P/TSX Composite is 8.9% below its 52-week high on Feb. 2, 2023 and 1.1% above its low on Oct. 24, 2022
* The S&P/TSX Composite is down 3.6% in the past 5 days and fell 4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.4 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.02t
* 30-day price volatility fell to 14.41% compared with 14.46% in the previous session and the average of 14.08% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -43.4612| -0.8| 10/17
Energy | -22.6203| -0.6| 16/24
Industrials | -21.6514| -0.9| 9/16
Materials | -7.3616| -0.3| 35/15
Consumer Staples | -3.2021| -0.4| 4/7
Health Care | 1.2332| 2.3| 2/2
Real Estate | 1.5896| 0.4| 12/8
Utilities | 1.8624| 0.3| 7/8
Consumer Discretionary | 5.5378| 0.8| 10/4
Communication Services | 8.2332| 1.1| 5/0
Information Technology | 19.5932| 1.4| 8/3
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
TD Bank | -22.0700| -2.2|n/a | -12.4
Teck Resources | -15.2600| -8.9|n/a | -4.3
RBC | -9.2680| -0.9|n/a | -13.3
Brookfield Corp | 3.6610| 0.9|n/a | -0.3
Restaurant Brands | 4.4520| 2.3|n/a | 5.0
Shopify | 16.7900| 2.9|n/a | 52.9
US
By Rita Nazareth
(Bloomberg) — A $201 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) whipsawed in late hours as Microsoft Corp. climbed, while Google’s parent Alphabet Inc. dropped after reporting earnings.
The results came after the end of a session marked by a rebound in stocks, with the S&P 500 halting a five-day slide.
Also after the closing bell, Texas Instruments Inc. gave a disappointing revenue forecast and Visa Inc. reported profit that beat Wall Street estimates.
Treasury 10-year yields edged lower.
Oil declined below $84 a barrel.
Bitcoin briefly topped $35,000.
Investors looking to the earnings season for a dose of good news are hanging their hopes on big tech.
The five largest companies in the S&P 500 account for about a quarter of the benchmark’s market capitalization.
Their earnings are projected to jump 34% from a year earlier on average, according to analyst estimates compiled by Bloomberg Intelligence.
“As these big tech stocks go, so does the overall market,” said David Trainer, chief executive officer of New Constructs. “If big tech companies blow their numbers out of the water and provide strong guidance for future earnings, then we could see the stock market rally strongly through the end of the year.”
Rising rates have made already stretched big tech valuations look increasingly expensive, with the group remaining the most-crowded trade among fund managers, according to Bank of America Corp.
The pain in long-duration growth stocks, fueled in recent weeks by a relentless surge in Treasury yields, is finally on the verge of subsiding. That is, at least, if the so-called Taylor Rule is anything to go by.
The equation, posited by Stanford economist John Taylor in 1993, has become a way to measure how the Federal Reserve can use its overnight bank lending rate to tame inflation or stimulate the economy.
Now, it’s approaching a critical inflection point for the US equity market by signaling that the central bank has finally normalized rates.
In economic news, US business activity picked up in October after back-to-back months of stagnation, helped by a rebound in factory demand and an easing in service-sector inflation “The US economy is generating growth, but it still must digest the ‘last mile’ of policy tightening in our view,” said Don Rissmiller of Strategas. “We would be more convinced that the growth we are seeing was high-quality or sustainable growth if the labor market was re-balanced (with labor demand equal to supply). Until then, the risk remains that continued restrictive monetary policy becomes too restrictive.”
Elsewhere, Chinese President Xi Jinping stepped up support for the economy, issuing additional sovereign debt, raising the budget deficit ratio and even making an unprecedented visit to the central bank.
Bank of Japan officials are likely to monitor bond yield movements until the last minute before making a decision on whether to adjust the yield curve control program at a policy meeting next week, according to people familiar with the matter.

Corporate Highlights:
* Verizon Communications Inc. posted third-quarter earnings that broadly beat analysts’ estimates.
* 3M Co. boosted its full-year adjusted profit and cash flow targets as it reported third-quarter results that easily topped Wall Street estimates.
* General Electric Co. raised its forecast for profit and free cash flow for the year as rebounding demand for air travel drives growth in its increasingly critical aerospace business.
* RTX Corp.’s profit topped Wall Street expectations and the company announced a $10 billion share-buyback program as it works to contain fallout from a costly quality lapse in its marquee engine for commercial aircraft.
* General Motors Co. can no longer say if it will make up to $14 billion in profit this year because a United Auto Workers strike, now in its sixth week, has made the company’s financial future too difficult to predict.
* Meta Platforms Inc. was sued by California and a group of more than 30 states over claims that its social-media platforms Instagram and Facebook exploit youths for profit and feed them harmful content.
* Barclays Plc lost as much as $2.7 billion in market value on Tuesday after inaugurating the reporting season for UK banks by lowering its forecast for lending profitability.

Key events this week:
* Australia CPI, Wednesday
* Germany IFO business climate, Wednesday
* Canada rate decision, Wednesday
* US new home sales, Wednesday
* IBM, Meta earnings, Wednesday
* European Central Bank interest rate decision; President Christine Lagarde holds news conference, Thursday
* US wholesale inventories, GDP, US durable goods, initial jobless claims, pending home sales, Thursday
* Intel, Amazon earnings, Thursday
* China industrial profits, Friday
* Japan Tokyo CPI, Friday
* US PCE deflator, personal spending and income, University of Michigan consumer sentiment, Friday
* Exxon Mobil earnings, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.7% as of 4 p.m. New York time
* The Nasdaq 100 rose 1%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index rose 0.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.7% to $1.0592
* The British pound fell 0.7% to $1.2163
* The Japanese yen fell 0.1% to 149.88 per dollar
Cryptocurrencies
* Bitcoin rose 7.1% to $33,787.3
* Ether rose 3.9% to $1,776.25
Bonds
* The yield on 10-year Treasuries declined three basis points to 4.82%
* Germany’s 10-year yield declined five basis points to 2.83%
* Britain’s 10-year yield declined six basis points to 4.54%
Commodities
* West Texas Intermediate crude fell 2.2% to $83.62 a barrel
* Gold futures fell 0.2% to $1,984.10 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee and Jeran Wittenstein.

Have a wonderful evening everyone.

Be magnificent!
As ever,

Shabnam
“Perfection is not attainable, but if we chase perfection, we can catch excellence.” —Vince Lombardi

Shabnam Mohammadpourmarzbali
Assistant to Carolann Steinhoff
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!
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 23, 1847, telegraph service was opened from Montreal to Albany and New York.
In 1950, University of Toronto researchers announced the development of an electronic heart pacemaker. Go to article >>

2023’s most popular Halloween costumes
If you still haven’t found a costume idea, fear not. CNN has you covered.

The Japanese city that dominates street food — and no, it’s not Tokyo
Fukuoka, Japan’s sixth largest city by population, has more open-air food stalls than the rest of the country combined. Enjoy these photos of Japan’s street food capital.

Australia’s Kaylee McKeown makes swimming history as she breaks 50m backstroke world record
See McKeown’s stunned reaction after she broke the women’s 50m backstroke world record in Budapest, Hungary.

Moon is 40 million years older than we thought, tiny crystals from Apollo mission confirm
A new analysis of zircon crystals from the Apollo 17 mission has revealed that the moon formed around 40 million years earlier than past geological evidence suggested. Read more.

Mystery blobs in Earth’s mantle may be linked to ancient gold and platinum that arrived from space
The gold and platinum that came from giant space rocks should have sunk into Earth’s core instead of rising to the crust.

PHOTOS OF THE DAY

Hertfordshire, UK
Harriet and her child pick Halloween pumpkins at the Pop Up Farm in Flamstead, St Albans
Photograph: Andrew Couldridge/Reuters

Svolvær, Norway
The northern lights appear in the sky over the Arctic town on the island of of Austvågøya in the Lofoten archipelago
Photograph: Manuel Romano/NurPhoto/Shutterstock

Bangkok, Thailand
Chinese tourists dressed in rented Thai traditional costumes take souvenir photographs during their visit to Wat Arun, also known as the Temple of Dawn
Photograph: Anusak Laowilas/NurPhoto/Shutterstock
Market Closes for October 23^rd, 2023

Market Index	Close	Change
Dow Jones	32936.41	-190.87
		-0.58%
S&P 500	4217.04	-7.12
		-0.17%
NASDAQ	13018.33	+34.52
		+0.27%
TSX	19046.74	-68.90
		-0.36%

International Markets

Market Index	Close	Change
NIKKEI	30999.55	-259.81
		-0.83%
HANG SENG	17172.13	-123.76
		-0.72%
SENSEX	64571.88	-825.74
		-1.26%
FTSE 100*	7374.83	-27.31
		-0.37%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.010	4.072
CND. 30 Year Bond	3.775	3.864
U.S.    10 Year Bond	4.8460	4.9137
U.S. 30 Year Bond	5.0006	5.0755

Currencies

BOC Close	Today	Previous
Canadian $	0.7304	0.7288
US $	1.3691	1.3721

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4605	0.6847
US $	1.0667	0.9375

Commodities

Gold	Close	Previous
London Gold Fix	1988.50	1953.55
Oil
WTI Crude Future	86.39	88.75

Market Commentary:
📈 On this day in 1907: Nervous depositors besieged New York’s biggest trust companies, demanding their deposits back after a crash in speculative copper stocks threatened the solvency of the trusts. J.P. Morgan, acting as the country’s unofficial central banker, lent $3 million to the Trust Co. of America, helping calm the panicky public.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the fourth day, dropping 0.4%, or 68.9 to 19,046.74 in Toronto.
The index dropped to the lowest closing level since Oct. 4.
Nutrien Ltd. contributed the most to the index decline, decreasing 4.6%.
Dye & Durham Ltd. had the largest drop, falling 13.6%.
Today, 133 of 227 shares fell, while 91 rose; 8 of 11 sectors were lower, led by materials stocks.
Insights
* This year, the index fell 1.7%, heading for the worst year since 2022
* This month, the index fell 2.5%
* The index advanced 1% in the past 52 weeks. The MSCI AC Americas Index gained 12% in the same period
* The S&P/TSX Composite is 8.6% below its 52-week high on Feb. 2, 2023 and 2.9% above its low on Oct. 21, 2022
* The S&P/TSX Composite is down 2.9% in the past 5 days and fell 3.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.5 on a trailing basis and 13.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.03t
* 30-day price volatility fell to 14.46% compared with 14.62% in the previous session and the average of 14.06% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -31.2069| -1.3| 13/36
Energy | -27.0776| -0.7| 13/27
Industrials | -14.3718| -0.6| 9/17
Information Technology | -3.3756| -0.2| 2/9
Health Care | -1.4512| -2.6| 1/3
Consumer Discretionary | -0.5554| -0.1| 5/9
Real Estate | -0.2954| -0.1| 12/9
Financials | -0.1269| 0.0| 12/16
Consumer Staples | 0.9529| 0.1| 9/2
Communication Services | 3.6034| 0.5| 3/2
Utilities | 5.0130| 0.7| 12/3
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Nutrien | -12.8900| -4.6|n/a | -21.3
Canadian Natural | | | |
Resources | -9.1600| -1.3|n/a | 17.8
Canadian Pacific | | | |
Kansas | -6.6390| -1.1|n/a | -4.3
RBC | 3.1220| 0.3|n/a | -12.5
BCE | 3.1240| 1.0|n/a | -14.0
Enbridge | 5.1660| 0.8|n/a | -16.9
US
By Rita Nazareth
(Bloomberg) — A renewed bout of volatility in the bond market impacted stock trading, with investors also awaiting earnings from a handful of big techs.
Oil sank as Israel appeared to hold off on a broader ground invasion of Gaza.
After several twists and turns, the S&P 500 closed at its lowest since May.
The gauge fell for a fifth straight session — its longest slide this year, while holding above the key 4,200 mark. That’s a technical support and represents a 50% retracement of the rally from the lows seen in the March banking turmoil.
The Nasdaq 100 outperformed, with Microsoft Corp. gaining ahead of its results and Nvidia Corp. up about 4%.
Treasury 10-year yields slumped after hitting 5%.
The dollar fell.
The world’s biggest bond market has faced intense volatility amid expectations the Federal Reserve will keep rates elevated and the government will boost bond sales to cover widening deficits.
Exactly how the inter-relationships between growth, interest rates and the Fed are working right now is uncertain, according to Jason Draho, head of asset allocation Americas at UBS Global Wealth Management. That means: Markets are likely to stay choppy until there’s more clarity, he added.
“With the peak level for the 10-year yield still anyone’s guess, the US equity market should remain under pressure since breadth and relative strength readings have yet to hit extremes,” said Sam Stovall, chief investment strategist at CFRA. “As a result, one thing is certain: October will add to its reputation as the most volatile month of the year.”
While the rise in rates usually makes stocks look less attractive versus Treasuries, the spread between the earnings yield on the S&P 500 and the 10-year rate — the equity risk premium — does not look alarming, according to David Lefkowitz, head of US equities at UBS Global Wealth Management.
While history suggests that a 10-year Treasury rate greater than about 6.5% tends to lead to lower valuations, it’s hard to know if this “tipping point” is still valid, Lefkowitz said.
It’s possible it could be lower because potential nominal growth in gross domestic product is lower than in the past, he noted, adding that the main risk to stocks is if higher rates lead to a pronounced economic slowdown.
Some of the market’s most prominent bond bears are saying the historic rout in US Treasuries has gone too far.
Billionaire investor Bill Ackman wrote in a social media post that he unwound his bet against US government bonds amid rising global risks.
Bill Gross, co-founder of Pacific Investment Management Co., wrote that he’s buying short-dated interest-rate futures in anticipation of a recession by year-end.
The full impact of the most aggressive monetary-tightening campaign by global central banks in decades has yet to be felt and will remain a headwind for financial markets going into next year, according to JPMorgan Chase & Co.’s Marko Kolanovic.
To Phillip Colmar, global strategist at MRB Partners, if there isn’t a consolidation phase in bond yields, equities are going to struggle.
“Within that equity market, you have to be careful about what you pick because what people loved earlier were tech stocks, which are longer duration,” Colmar added. “They better deliver because you have a high interest rate environment and they’re priced for perfection.”
Investors looking to the earnings season for a dose of good news are hanging their hopes on big tech.
The five biggest companies in the S&P 500 — Apple Inc.,
Microsoft, Alphabet Inc., Amazon.com Inc. and Nvidia Corp. — account for about a quarter of the benchmark’s market capitalization.
Their earnings are projected to jump 34% from a year earlier on average, according to analyst estimates compiled by Bloomberg Intelligence.
Morgan Stanley’s Michael Wilson — among the most bearish voices on US stocks — said he “would not be surprised” to see further declines in the S&P 500 with “earnings expectations likely too high for the fourth quarter and 2024, and policy tightening likely to be felt from both a monetary and fiscal standpoint.”
With about a fifth of the S&P 500 members having reported, shares of companies that lagged analysts’ estimates on the earnings-per-share metric have seen their stock underperform the benchmark index by a median of 3.7% on the day of results, according to data compiled by BI.
That’s the worst performance in the data’s history going back to the second quarter of 2019.
“October can be a tough month for stocks, but more often than not tends to see the S&P 500 rise,” said Lori Calvasina, head of US equity strategy at RBC Capital Markets. “Unfortunately, as of mid-October of 2023, US equities are still in a spooky place.”

Corporate Highlights:
* Nvidia Corp. is using Arm Holdings Plc technology to develop chips that would challenge Intel Corp. processors in personal computers, potentially ratcheting up competition between the two semiconductor makers, according to people familiar with the situation.
* Chevron Corp. agreed to buy Hess Corp. for $53 billion, a deal aimed at boosting production growth as the US oil industry bets on an enduring future for fossil fuels.
* Reliance Industries Ltd., controlled by Asia’s richest tycoon Mukesh Ambani, is nearing a cash and stock deal to buy Walt Disney Co.’s India operations, according to people familiar with the matter.
* Engage Smart Inc., a business-to-business software company, has agreed to be acquired by Vista Equity Partners in an all-cash deal valued at about $4 billion.
* Roche Holding AG will pay $7.1 billion to acquire Telavant Holdings Inc., a developer of a promising therapy for treating inflammatory bowel disease.
* Walgreens Boots Alliance Inc. rose as JPMorgan Chase & Co. raised the drugstore chain rating to overweight.
* Pinterest Inc. climbed after Stifel raised its rating to buy, noting there’s room for growth outside the company’s domestic market.
* Okta Inc. tumbled after the identity verification company said that hackers used a stolen credential to access its support case management system.
* United Auto Workers union members at Stellantis NV’s lucrative truck plant in Sterling Heights, Michigan, walked off the job Monday morning, a surprise hit designed to extract further concessions in the sixth week of the strike against Detroit’s three biggest automakers.
Elsewhere, gold dropped.
Bitcoin topped $31,000.
Argentina’s dollar bonds were the worst in emerging markets as investors fret over a presidential runoff between the nation’s economy minister and a radical libertarian.

Key events this week:
* Reserve Bank of Australia Governor Michele Bullock speaks at the Commonwealth Bank Annual Conference in Sydney, Tuesday
* Paris-based International Energy Agency releases its world energy outlook annual report, Tuesday
* Eurozone S&P Global Services PMI, S&P Global Manufacturing PMI, Tuesday
* Euro-area bank lending survey, Tuesday
* US S&P Global Manufacturing PMI, Tuesday
* Microsoft, Alphabet earnings, Tuesday
* Australia CPI, Wednesday
* Germany IFO business climate, Wednesday
* Canada rate decision, Wednesday
* US new home sales, Wednesday
* IBM, Meta earnings, Wednesday
* European Central Bank interest rate decision; President Christine Lagarde holds news conference, Thursday
* US wholesale inventories, GDP, US durable goods, initial jobless claims, pending home sales, Thursday
* Intel, Amazon earnings, Thursday
* China industrial profits, Friday
* Japan Tokyo CPI, Friday
* US PCE deflator, personal spending and income, University of Michigan consumer sentiment, Friday
* Exxon Mobil earnings, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average fell 0.6%
* The MSCI World index fell 0.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.7% to $1.0666
* The British pound rose 0.7% to $1.2244
* The Japanese yen rose 0.1% to 149.65 per dollar
Cryptocurrencies
* Bitcoin rose 5.1% to $31,379.27
* Ether rose 4.2% to $1,709.69
Bonds
* The yield on 10-year Treasuries declined seven basis points to 4.85%
* Germany’s 10-year yield declined two basis points to 2.87%
* Britain’s 10-year yield declined five basis points to 4.60%
Commodities
* West Texas Intermediate crude fell 2.4% to $86.01 a barrel
* Gold futures fell 0.5% to $1,984.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Emily Graffeo, Isabelle Lee and Elena Popina.

Have a wonderful day everyone.

Be magnificent!
As ever,

Shabnam
“Go confidently in the direction of your dreams. Live the life you have imagined.” —Henry David Thoreau

Shabnam Mohammadpourmarzbali
Assistant to Carolann Steinhoff
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.

October 20, 1959: Construction of the Guggenheim Museum in New York City is completed, showcasing modern and contemporary  art.
1992: The host Toronto Blue Jays beat the Atlanta Braves 3-2 in the first World Series game played outside the United States. Go to article >>

Christopher Wren, architect, b.1632.
Mickey Mantle, baseball player, b.1931.

Secrets of the ‘world’s best hotel’
Passalacqua, a luxury hotel on Lake Como, was voted the best hotel in the world at the inaugural World’s 50 Best Hotels awards. See inside.

Billions of crabs went missing around Alaska. Scientists now know what happened to them
Alaska’s snow crab harvest season has been canceled for the second year in a row due to warmer ocean temperatures.

LeBron James announces upcoming release of another children’s book
The picture book aims to “inspire the next generation of leaders to be all that they dream to be … and more,” the book’s executive editor said.

Fun Halloween recipes every kid will love
Here are some frightfully delicious snacks for your little ones this Halloween.

Oldest radio-wave explosion ever found could be used to weigh the universe, astronomers say
Astronomers traced a mysterious radio source to three merging galaxies 8 billion light-years away. Studying it could help uncover the universe’s missing matter. Read More.

Man digs up 1,000-year-old sword from Swedish Crusades in his yard in Finland
In addition to finding a Crusader sword, archaeologists in Finland have discovered a cemetery that could potentially contain hundreds of graves. Read More.

Mysterious signals from ‘hell planet’ 40 light-years from Earth could finally be solved by James Webb Space Telescope
The hellish super-Earth ’55 Cancri e’ may be constantly losing and re-growing its atmosphere, a new study of the planet’s strange transit signals suggests. Read More.

PHOTOS OF THE DAY

South Shields, UK
Waves crash against a damaged lighthouse as Storm Babet batters the country. Flood warnings are in place in Scotland, as well as parts of northern England and the Midlands.  Photograph: Owen Humphreys/PA

Whitby, UK
English Heritage conduct a lighting test on the ruins of Whitby Abbey in North Yorkshire before its Illuminated Abbey event, during which the structure will be lit up between 6pm and 9pm, from 21 to 31 October.  Photograph: Danny Lawson/PA

New York, US
Mick Jagger, right, and Keith Richards perform after the release of the Rolling Stones’ new album, Hackney Diamonds.  Photograph: Evan Agostini/Invision/AP.
Market Closes for October 20^th, 2023

Market Index	Close	Change
Dow Jones	33127.28	-286.89
		-0.86%
S&P 500	4224.16	-53.84
		-1.26%
NASDAQ	12983.81	-202.36
		-1.53%
TSX	19115.64	-233.17
		-1.21%

International Markets

Market Index	Close	Change
NIKKEI	31259.36	-171.26
		-0.54%
HANG SENG	17172.13	-123.76
		-0.72%
SENSEX	65397.62	-231.62
		-0.35%
FTSE 100*	7402.14	-97.39
		-1.30%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.072	4.196
CND. 30 Year Bond	3.864	3.929
U.S.    10 Year Bond	4.9137	4.9898
U.S. 30 Year Bond	5.0755	5.1099

Currencies

BOC Close	Today	Previous
Canadian $	0.7288	0.7287
US $	1.3721	1.3723

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4538	0.6879
US $	1.0598	0.9436

Commodities

Gold	Close	Previous
London Gold Fix	1953.55	1955.70
Oil
WTI Crude Future	88.75	89.37

Market Commentary:
📈 On this day in 1803, the Senate ratified the Louisiana Purchase Treaty, under which the U.S. paid France $15 million for the 828,000-square mile territory. The U.S. financed the deal by issuing $11.25 million in bonds with a 6% coupon.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 1.2%, or 233.17 to 19,115.64 in Toronto.
The index dropped to the lowest closing level since Oct. 4.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.8%.
Dye & Durham Ltd. had the largest drop, falling 8.2%.
Today, 188 of 227 shares fell, while 38 rose; all sectors were lower, led by financials stocks.
Insights
* In the past year, the index had a similar or greater loss 18 times. The next day, it declined 13 times for an average 0.5% and advanced five times for an average 1%
* This year, the index fell 1.4%, heading for the worst year since 2022
* This month, the index fell 2.2%
* So far this week, the index fell 1.8%
* The index advanced 2.9% in the past 52 weeks. The MSCI AC Americas Index gained 14% in the same period
* The S&P/TSX Composite is 8.3% below its 52-week high on Feb. 2, 2023 and 3.3% above its low on Oct. 21, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.5 on a trailing basis and 13.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.07t
* 30-day price volatility rose to 14.62% compared with 14.26% in the previous session and the average of 13.95% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -116.5800| -2.0| 1/27
Energy | -49.0602| -1.3| 1/39
Information Technology| -17.2450| -1.2| 0/11
Communication Services| -13.4689| -1.8| 0/5
Utilities | -12.4464| -1.7| 1/14
Materials | -10.7201| -0.5| 19/32
Real Estate | -7.0524| -1.6| 2/19
Consumer Staples | -3.4094| -0.4| 1/10
Industrials | -1.3899| -0.1| 9/17
Consumer Discretionary| -1.0822| -0.2| 4/10
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
RBC | -19.7100| -1.8|n/a | -12.8
TD Bank | -15.5200| -1.5|n/a | -10.2
Bank of Nova Scotia | -12.9800| -2.7|n/a | -14.6
Franco-Nevada | 1.5030| 0.6|n/a | 3.2
Barrick Gold | 5.2740| 1.9|n/a | -0.2
Canadian National | 7.4630| 1.3|n/a | -9.3
US
By Rita Nazareth
(Bloomberg) — Stocks fell around the world, while bonds climbed with gold on concern the Israel-Hamas war will escalate into a wider conflict in the Middle East.
Oil pulled back after hitting $90 a barrel.
The S&P 500 dropped over 1%, notching its worst week in a month.
The gauge breached the key 200-day moving average — a move seen by some chartists as a harbinger of more losses.
Mega-caps sold off, with Tesla Inc. seeing its biggest weekly slide since December.
American Express Co. tumbled more than 5% on disappointing volumes on its cards.
Regions Financial Corp. led losses in banks after warning of further declines in net interest income.
Traders continued to seek haven amid the latest geopolitical developments.
Treasury yields pared weekly increases that pushed the 10-year rate to almost 5%.
Gold edged closer to $2,000 an ounce.
“The ongoing situation in the Middle East has triggered a surge of volatility in the oil and stock markets, compelling investors to re-evaluate their strategies and shift their focus from riskier assets to ‘safer’ investments,” said Fawad Razaqzada, market analyst at City Index and Forex.com.
Hamas released two American citizens who had been held captive in Gaza.
Leaders from around the region are heading to Cairo for a Saturday summit on the crisis.
Israel’s military said it struck Hamas targets in Gaza overnight.
Israel also responded to fire from Lebanon by hitting Hezbollah assets, and evacuated residents near the border.
The Iran-backed militant group said it fired guided missiles at several Israeli sites.
Aside from the Middle East crisis, global markets have been whipped around in recent weeks by climbing Treasury yields and growing worries about interest rates staying elevated for longer.
Federal Reserve Bank of Cleveland President Loretta Mester said the US central bank is close to wrapping up its tightening campaign if the economy evolves as expected.

Corporate Earnings
Traders also waded through a raft corporate earnings.
Of the 86 companies in S&P 500 that have announced results through Friday morning, 74% beat analysts’ profit estimates, compared with 78% for the whole season a year ago, according to data
compiled by Bloomberg.
Individual shares reacted to earnings announcements in the week or so since Corporate America started reporting results.
But conflict in the Middle East and elevated Treasury yields have taken precedence, causing S&P 500 constituents to increasingly move in unison as global events sway markets broadly.
In half the trading sessions since Oct. 13, when the reporting cycle kicked off, at least 400 members in the S&P 500 have moved in the same direction.
It’s a frequency that didn’t appear once in comparable weeks the past three earnings periods.
While the S&P 500’s declines this week have appeared largely orderly, the nearest futures contracts tied to the CBOE Volatility Index — also known as the VIX and a measure of expected swings in America’s benchmark equity gauge — closed Thursday in a pattern known as backwardation.
It’s a telltale sign of mounting distress, as traders anticipate more volatility in the near-term than further out in the future.
Corporate News
* SLB, the biggest oil-services provider, posted its first sequential dip in North American sales since the start of 2021.
* Solar stocks tumbled after SolarEdge Technologies Inc. warned that third-quarter revenue will be well below its guidance, citing “substantial” cancellations and delayed orders.
* Stellantis NV is raising its wage offer to 23%, matching General Motors Co. and Ford Motor Co. as negotiations with the United Auto Workers heat up, people familiar with the discussions said.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.5%
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World index fell 1.1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.1% to $1.0593
* The British pound rose 0.1% to $1.2160
* The Japanese yen was little changed at 149.85 per dollar
Cryptocurrencies
* Bitcoin rose 2.9% to $29,556.5
* Ether rose 2.5% to $1,606.36
Bonds
* The yield on 10-year Treasuries declined eight basis points to 4.91%
* Germany’s 10-year yield declined four basis points to 2.89%
* Britain’s 10-year yield declined two basis points to 4.65%
Commodities
* West Texas Intermediate crude fell 0.7% to $88.75 a barrel
* Gold futures rose 0.6% to $1,991.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann
Not a day passes over the earth but men and women of no note do great deeds, speak great words,
and suffer noble sorrow.  Of these obscure heroes, philosophers and martyrs
the greater part will never be known. – Charles Reade, 1814-1884.

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

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

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

Dear Friends,

Tangents: Happy Friday Eve.
On Oct. 19, 1987, the stock market crashed as the Dow Jones Industrial Average plunged 508 points, or 22.6 percent in value – its second biggest percentage drop.  Go to article >>

John Le Carre, b. 1931.

See inside a $50M Miami penthouse
The developers behind the Waldorf Astoria Miami spared no expense with this 13,000-square-foot, sky-high residence. See inside the penthouse that’s set to become one of the most expensive units in the city.

Sydney Opera House at 50: See what Australia’s best-known building could have looked like
The unmistakable design for the Sydney Opera House was just one of 233 entries in an international competition. Here are some of the proposals that didn’t make the cut.

Scientists finally solve mystery of why Europeans have less Neanderthal DNA than East Asians
Modern Europeans have a smaller proportion of Neanderthal genes in their genomes than East Asians do. New research suggests the reason lies at the feet of migrating early farmers. Read More.

Stash of ‘eye-catching’ Bronze Age jewelry discovered by metal detectorist in Swiss carrot field
Archaeologists have dated Bronze Age artifacts unearthed in Switzerland to roughly 1500 B.C.  Full Story: Live Science (10/18)

Strange elements unknown to science may lurk in the hearts of asteroids, new study suggests
Naturally occurring superheavy elements beyond those listed in the periodic table could potentially explain why asteroid 33 Polyhymnia is so dense, new research suggests. Read More.

Scientists propose ‘missing’ law for the evolution of everything in the universe
The “law of increasing functional information” says that complex systems in nature evolve to become more complex.  Full Story: Live Science (10/18)

Only 1% of chemicals in the universe have been discovered. Here’s how scientists are hunting for the rest.
Most chemical compounds are still unknown to science. How many new ones can we make by combining elements from the periodic table?  Read More.
PHOTOS OF THE DAY

Leuk, Switzerland
Employees of the Swiss electricity producer and supplier CKW, part of Axpo, install solar panels in a satellite dish at the Leuk Teleport and Data Centre.  Photograph: Denis Balibouse/Reuters.

Inle Lake, Myanmar
Buddhists row in front of four sacred Buddha images placed on a golden barge during the festival of Phaung Daw Oo Pagoda in Shan State.  Photograph: Sai Aung Main/AFP/Getty Images.

Bordeaux, France
Visitors view the exhibition ‘Tintin, The Immersive Adventure’ at the Bassins des Lumières.  Photograph: Moritz Thibaud/Abaca/Shutterstock.
Market Closes for October 19^th, 2023

Market Index	Close	Change
Dow Jones	33414.17	-250.91
		-0.75%
S&P 500	4278.00	-36.60
		-0.85%
NASDAQ	13186.18	-128.13
		-0.96%
TSX	19348.81	-101.89
		-0.52%

International Markets

Market Index	Close	Change
NIKKEI	31430.62	-611.63
		-1.91%
HANG SENG	17295.89	-436.63
		-2.46%
SENSEX	65629.24	-247.78
		-0.38%
FTSE 100*	7499.53	-88.47
		-1.17%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.196	4.105
CND. 30 Year Bond	3.929	3.789
U.S.    10 Year Bond	4.9898	4.9149
U.S. 30 Year Bond	5.1099	4.9948

Currencies

BOC Close	Today	Previous
Canadian $	0.7287	0.7292
US $	1.3723	1.3713

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4521	0.6887
US $	1.0583	0.9449

Commodities

Gold	Close	Previous
London Gold Fix	1955.70	1928.20
Oil
WTI Crude Future	89.37	88.32

Market Commentary:
📈 This day in 1987 was Black Monday, as the Dow lost 22.6% (the worst daily loss on record), to close at 1738.74. Traders on Wall Street watched in shocked silence as prices plunged faster and farther than anyone alive has ever seen.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.5%, or 101.89 to 19,348.81 in Toronto.
The index dropped to the lowest closing level since Oct. 6.
Brookfield Corp. contributed the most to the index decline, decreasing 2.6%. Lithium Americas Corp. had the largest drop, falling 12.7%.
Today, 142 of 227 shares fell, while 79 rose; 9 of 11 sectors were lower, led by financials stocks.
Insights
* This year, the index was little changed, heading for the worst year since 2022
* So far this week, the index fell 0.6%
* The index advanced 3.6% in the past 52 weeks. The MSCI AC Americas Index gained 15% in the same period
* The S&P/TSX Composite is 7.2% below its 52-week high on Feb. 2, 2023 and 4.5% above its low on Oct. 21, 2022
* The S&P/TSX Composite is down 0.8% in the past 5 days and fell 4.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.7 on a trailing basis and 13.8 times estimated earnings of its members for the coming year * The index’s dividend yield is 3.4%
   on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.09t
* 30-day price volatility little changed to 14.26% compared with 14.25% in the previous session and the average of 13.85% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -57.4103| -1.0| 2/26
Industrials | -13.6308| -0.5| 5/21
Information Technology | -8.7994| -0.6| 4/7
Utilities | -8.2803| -1.1| 4/11
Real Estate | -7.5964| -1.7| 2/19
Materials | -6.6892| -0.3| 27/22
Consumer Staples | -4.8021| -0.6| 2/9
Health Care | -1.5915| -2.7| 0/3
Consumer Discretionary | -0.3070| 0.0| 6/8
Communication Services | 0.7368| 0.1| 2/2
Energy | 6.4869| 0.2| 25/14
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Brookfield Corp | -11.5900| -2.6|n/a | 0.5
Shopify | -10.9500| -1.8|n/a | 51.2
Sun Life Financial | -7.6690| -2.8|n/a | 2.0
Constellation Software | 3.8020| 1.0|n/a | 38.0
National Bank of Canada | 4.0150| 2.0|n/a | -2.9
Restaurant Brands | 5.0840| 2.6|n/a | 3.3
US
By Rita Nazareth
(Bloomberg) — Volatility gripped Wall Street as traders kept a close eye on any signs of a potential escalation of the Middle East conflict, while weighing Jerome Powell’s remarks for clues on the policy outlook.
After multiple twists and turns, the S&P 500 notched its third straight loss.
A US base in Syria was targeted by drones, while a US destroyer intercepted cruise missiles and drones in Yemen, incidents that caused minor injuries but prompted fresh concerns that Israel’s war with Hamas may spark a wider conflict.
Tesla Inc. sank over 9% on disappointing results.
Treasury 10-year yields approached 5%, while two-year rates fell after Powell said the Federal Reserve will proceed carefully with rate hikes, while citing evidence that policy isn’t “too tight.”
Swaps trimmed the implied odds of another Fed rate increase to just under 50%, and priced a start to cuts in July, compared with September previously.
“Jay Powell is putting to bed any chance of a Nov. 1 rate hike. As to not let markets get carried away though, he left the door open for more rate hikes,” said Peter Boockvar, author of the Boock Report. “Short rates are falling as they are likely done, but the rise in long rates is proving again that they are losing their grip on that part of the market.”
“The Fed is not yet convinced about where inflation will settle over the next few quarters, which means that the committee will not pre-commit,” said Jeffrey Roach, chief economist for LPL Financial. “Each meeting will be a live meeting.”
Powell also said he recent run-up in bond yields appears to be mostly due to rising term premiums, “and so the type that tightens financial conditions, rather than the type of move the Fed needs to follow through on,” said Krishna Guha, vice chairman of Evercore.
“He agreed that ‘at the margin’ this could substitute for the need for the Fed to raise rates further,” Guha noted. “But his comments lacked any urgency to lean against the rise in yields.”
Fed Bank of Chicago President Austan Goolsbee said he’s hopeful the US is able to avoid a recession despite rapid and steep interest-rate hikes over the past 18 months.
He emphasized the need for the Fed to ensure inflation was on track to ease to its 2% goal and for inflation expectations to stay anchored.
Thursday’s economic reports were mixed.
Applications for US unemployment benefits dropped to the lowest level since January as the labor market kept powering ahead.
Sales of previously owned US homes fell to the lowest level since 2010 as affordability worsened even further.
Elsewhere, a system “incident” halted trading in hundreds of shares on the London Stock Exchange for the final 80 minutes of Thursday’s session.

Corporate Highlights
* Netflix Inc. surged after posting its best quarter for subscriber growth in years.
* American Airlines Group Inc. topped expectations for profit even as its forecast for the rest of the year fell short.
* Union Pacific Corp. reported profit that topped analysts’ estimates, which had been adjusted down in the last month, as the railroad leaned on efficiency to make up for lower carloads and higher labor costs.
* AT&T Inc. raised its free cash flow guidance for the full year after posting mobile subscriber gains and profit that beat analysts’ estimates.
* Lam Research Corp.’s revenue fell for a third straight quarter, a sign demand for chipmaking equipment remains sluggish.
* Blackstone Inc., grappling with higher interest rates and stung by a pullback in dealmaking, reported a 12% decline in quarterly profit available to shareholders.
* Las Vegas Sands Corp. authorized its first share buyback program since 2020, signaling management’s confidence in the business after years of pandemic-related hardship.
Key events this week:
* Japan CPI, Friday
* China loan prime rates, Friday
* Philadelphia Fed President Patrick Harker speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.9% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.8%
* The Dow Jones Industrial Average fell 0.7%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.5% to $1.0587
* The British pound was little changed at $1.2148
* The Japanese yen was little changed at 149.81 per dollar
Cryptocurrencies
* Bitcoin rose 1.8% to $28,775.9
* Ether rose 0.4% to $1,569.01
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 4.98%
* Germany’s 10-year yield was little changed at 2.93%
* Britain’s 10-year yield advanced two basis points to 4.67%
Commodities
* West Texas Intermediate crude rose 2.5% to $90.50 a barrel
* Gold futures rose 0.9% to $1,986.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
Whatever task you undertake, do it with all your heart and soul.  Always be courteous, never be discouraged.
Beware of him who promises something for nothing.  Do not blame anybody for your mistakes and failures. -Bernard Mannes Baruch, 1870-1965.

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

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

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

Dear Friends,

Tangents:
October 18, 1877: Thomas Edison successfully demonstrates the incandescent light bulb for the first time.
October 18, 1892: The first long distance telephone line between Chicago and New York was opened. Go to article >>

Chuck Berry, b. 1926.
Martina Navratilova, b. 1956.

France set to take top winemaking spot.

‘World’s best’ bar for 2023 is revealed
Long dominated by New York and London cocktail establishments, the World’s 50 Best Bar Awards have found this year’s winner in a Spanish city.

Early Europeans thrived on seaweed, study reveals
Seaweed and aquatic plants were once a staple food for ancient Europeans, according to a new analysis of dental fossils.

This is the world’s new hottest chili pepper
Chili Pepper X has taken the spicy record as the world’s hottest, Guinness World Records announced this week.

Scrolls that were scorched when Mount Vesuvius erupted were finally read
Mount Vesuvius’ eruption in A.D. 79 carbonized hundreds of scrolls and papyri in the ancient Roman city of Herculaneum. Now, AI has decoded part of a scroll. Read More.

Orionid meteor shower peaks this weekend: How to get the best views
The Orionid meteor shower will peak this weekend. Here’s when to get the best view. Read More.

New ‘atlas’ of a monkey brain maps 4.2 million cells
Scientists have published a new atlas of a primate brain with single-cell resolution. Read More.

China is building the world’s largest underwater telescope to hunt for elusive ‘ghost particles’
China’s forthcoming Tropical Deep-sea Neutrino Telescope (TRIDENT) will search for the origins of cosmic rays in momentary flashes of light beneath the ocean’s surface. Read More.

PHOTOS OF THE DAY

San Francisco, US
Sea fog and sherbet-coloured skies made for a classic sunset scene at the Golden Gate Bridge, which joins San Francisco to Marin County
Photograph: Tayfun Coskun/Anadolu/Getty Images

Liverpool, UK
A moorhen makes a splash at Sefton Park, which covers more than 200 acres and features a boating lake and palm house
Photograph: Peter Byrne/PA

Hanam, South Korea
People enjoy time in a pink muhly grass field at a park in Hanam, South Korea. REUTERS/Kim Hong-Ji
Market Closes for October 18^th, 2023

Market Index	Close	Change
Dow Jones	33665.08	-332.57
		-0.98%
S&P 500	4314.60	-58.60
		-1.34%
NASDAQ	13314.30	-219.45
		-1.62%
TSX	19450.70	-242.10
		-1.23%

International Markets

Market Index	Close	Change
NIKKEI	32042.25	+1.96
		+0.01%
HANG SENG	17732.52	-40.82
		-0.23%
SENSEX	65877.02	-551.07
		-0.83%
FTSE 100*	7588.00	-87.21
		-1.14%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	4.105	4.074
CND. 30 Year Bond	3.789	3.759
U.S.    10 Year Bond	4.9149	4.8341
U.S. 30 Year Bond	4.9948	4.9246

Currencies

BOC Close	Today	Previous
Canadian $	0.7292	0.7327
US $	1.3713	1.3649

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4451	0.6920
US $	1.0539	0.9489

Commodities

Gold	Close	Previous
London Gold Fix	1928.20	1918.05
Oil
WTI Crude Future	88.32	86.66

Market Commentary:
📈 On this day in 1937, the stock market crashed on rumors that the Roosevelt administration was planning a crackdown on Wall Street. The Dow Jones Industrial Average lost over 7%, a key dip in the middle of the Great Depression.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.2% at 19,450.70 in Toronto.
The move was the biggest since falling 1.9% on Oct. 2 and follows the previous session’s increase of 0.4%.
Today, financials stocks led the market lower, as 10 of 11 sectors lost; 177 of 227 shares fell, while 48 rose.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.6%.
Lithium Americas Corp. had the largest drop, falling 10.0%.
Insights
* In the past year, the index had a similar or greater loss 17 times. The next day, it declined 12 times for an average 0.5% and advanced five times for an average 1%
* This year, the index rose 0.3%, heading for the best year since 2021
* The index advanced 3.5% in the past 52 weeks. The MSCI AC Americas Index gained 15% in the same period
* The S&P/TSX Composite is 6.7% below its 52-week high on Feb. 2, 2023 and 5.1% above its low on Oct. 21, 2022
* The S&P/TSX Composite is down 1.1% in the past 5 days and fell 5.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.7 on a trailing basis and 13.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.12t
* 30-day price volatility rose to 14.25% compared with 14.05% in the previous session and the average of 13.73% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -107.1316| -1.8| 1/27
Industrials | -52.7532| -2.0| 2/24
Information Technology| -17.7144| -1.2| 3/8
Utilities | -15.7356| -2.0| 0/15
Communication Services| -13.9207| -1.9| 0/5
Consumer Staples | -10.6045| -1.2| 0/11
Real Estate | -9.2726| -2.0| 0/21
Consumer Discretionary| -8.5559| -1.2| 2/12
Materials | -6.0153| -0.3| 20/32
Health Care | -0.9973| -1.7| 1/3
Energy | 0.6073| 0.0| 19/19
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | -18.3400| -1.6|n/a | -10.7
TD Bank | -17.1900| -1.6|n/a | -8.3
Canadian National | -16.7800| -2.7|n/a | -10.2
Cenovus Energy | 2.4460| 0.9|n/a | 10.6
Barrick Gold | 3.3120| 1.2|n/a | -2.4
Suncor Energy | 4.1180| 1.0|n/a | 10.2
US
By Rita Nazareth
(Bloomberg) — A giant exchange-traded fund tracking the Nasdaq 100 (QQQ) advanced in late trading as Tesla Inc. rebounded, while Netflix Inc. rallied after earnings.
The gains signaled a recovery in mega caps, following a slide driven by geopolitical risks and higher Treasury yields.
The S&P 500 dropped 1.3% on Wednesday and oil rallied as Iran intensified its rhetoric against Israel after an explosion at a Gaza hospital that complicated diplomatic efforts to rein in the Middle East conflict.
Morgan Stanley sank the most since 2020 as profit fell on an investment-bank slowdown.
United Airlines Holdings Inc. tumbled almost 10% after warning the Israel-Hamas war and higher jet fuel costs would weigh on earnings.
“The risks of an escalation have risen on the back of the latest news reports regarding the hospital bombing,” said Jane Foley, head of foreign-exchange strategy at Rabobank. While there have been few signs of panic, “on any clear escalation, we can expect to see a ratcheting up of risk aversion,” she said.
Traders also sifted through Fed speak and the latest Beige Book for clues on the central bank’s next steps.
The outlook for the US economy is stable or may show softer expansion, the Federal Reserve said in its survey of regional business contacts.
Fed Bank of New York President John Williams said rates will have to stay at restrictive levels “for some time” to bring inflation back to the central bank’s target.
Meantime, Governor Christopher Waller noted policymakers can wait and gather more data before deciding if the economy needs further monetary restraint.
“We just don’t know how long inflation is going to remain elevated, which in turn raises question marks about the longevity of high interest rates,” said Fawad Razaqzada, market analyst at City Index and Forex.com. “Judging by recent data in the US, oil prices and Fed commentary, it can be a long time before the Fed starts cutting rates again.”
Fed Chair Jerome Powell is set to speak at the Economic Club of New York on Thursday.
There’s been a lot of investor anxiety on whether upside economic surprises could lead the Fed to tighten further, according to Krishna Guha at Evercore.
However, we think Powell will stick to the message delivered by Vice-Chair Philip Jefferson that the data has been strong, “but there has also been a big move in yields, which has tightened financial conditions,” Guha added. “So no urgency for a policy response in November and the Fed can adopt a wait-and-see approach.”

Corporate Highlights
* Procter & Gamble Co. reported sales and profit that surpassed analysts’ estimates as higher prices bolstered the business despite a lower volume of products sold.
* Nasdaq Inc. reported sales that beat expectations after the initial public offering market picked up last quarter.
* U.S. Bancorp said profit fell in the third quarter as the biggest US regional lender increased its provisions for credit losses.
* Interactive Brokers Group Inc. tempered its guidance for accounts growth.
* Ally Financial Inc. posted third-quarter profit that beat analyst estimates even as consumers struggled to make loan payments.
* ASML Holding NV orders plunged in the third quarter amid a sector-wide slump in the semiconductor industry that has left the company increasingly reliant on revenue from China.
* Abbott Laboratories narrowed its annual profit forecast as it beat estimates for quarterly results, citing growth in medical devices for heart disease and diabetes.
* Spirit AeroSystems Holdings Inc. restructured key supplier contracts with its biggest customer, Boeing Co., to stem the aircraft-parts maker’s deteriorating financial performance, speed production and improve build quality.

Key events this week:
* Australia unemployment, Thursday
* Japan trade, Thursday
* China property prices, Thursday
* US initial jobless claims, existing home sales, leading index,
Thursday
* Federal Reserve Chair Jerome Powell, Chicago Fed President
Austan Goolsbee, Atlanta Fed President Raphael Bostic,
Philadelphia Fed President Patrick Harker, Dallas Fed President
Lorie Logan speak at different events, Thursday
* Japan CPI, Friday
* China loan prime rates, Friday
* Philadelphia Fed President Patrick Harker speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.4%
* The Dow Jones Industrial Average fell 1%
* The MSCI World index fell 1.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.4% to $1.0535
* The British pound fell 0.4% to $1.2140
* The Japanese yen was little changed at 149.89 per dollar
Cryptocurrencies
* Bitcoin fell 0.8% to $28,244.17
* Ether was little changed at $1,561.69
Bonds
* The yield on 10-year Treasuries advanced eight basis points to 4.91%
* Germany’s 10-year yield advanced four basis points to 2.92%
* Britain’s 10-year yield advanced 15 basis points to 4.66%
Commodities
* West Texas Intermediate crude rose 1.7% to $88.16 a barrel
* Gold futures rose 1.4% to $1,963.50 an ounce
This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
Life’s blows cannot break a person whose spirit is warmed at the fire of enthusiasm. –Norman Vincent Peale, 1898-1993.

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