Month: June 2024

Dear Friends,

Tangents: Happy Friday.

June 28, 1846: The saxophone is patented.  Belgian musician Adolphe Sax developed the woodwind instrument typically made of brass.
June 28, 1997: Mike Tyson was disqualified for biting Evander Holyfield’s ear during their WBA heavyweight title fight in Las Vegas.   Go to article >>
June 28, 1969: Stonewall Riot, start of Gay Liberation movement.

Peter Paul Rubens, artist, b. 1577.
Jean-Jacques Rousseau, philosopher, b. 1712

Milky Way’s black hole ‘exhaust vent’ discovered in eerie X-ray observations
A gargantuan “exhaust vent” may be channeling hot gas away from the Milky Way’s supermassive black hole at millions of miles per hour — and filling up two enormous bubbles that tower over the galaxy. Read More.

2,000-year-old funerary urn found in Spain contains the world’s oldest known liquid wine
Scientists discovered the oldest known wine in liquid form inside a Roman-era tomb in Spain. Read More.

Predator or prey? This ‘switch’ in the brain toggles when you’re hunting or being hunted
The hypothalamus, a brain region that helps control our hormones and sleep cycles, is also responsible for our ability to switch between predator- and prey-like behavior. Read More.

‘Night vision lenses’ could give you power to see in the dark using simple eyeglasses
Super-slim night-vision tech could be within reach thanks to a new material breakthrough that can capture infrared and visible light at the same time. Read More.

Mystery ‘random event’ killed off Earth’s last woolly mammoths in Siberia, study claims
Woolly mammoths survived on Wrangel Island for 6,000 years after their mainland cousins had perished. A new genomic study has revealed that this final population likely died from a sudden, mysterious event. Read More.

Secret to lifelong memories sticking is molecular ‘glue’
A new study has uncovered the role that a specific molecule in the brain plays in maintaining long-term memory.  Full Story: Live Science (6/28)

This smiling robot has a face covered in ‘living’ skin
It may look creepy, but this tiny robot covered in living skin could mark a step forward in the quest to make robots more human-like.

Researchers reveal new analysis from precious asteroid sample
A sample from asteroid Bennu contains organic compounds usually found at midocean ridges on Earth, suggesting Bennu may have been part of an ancient ocean world.

Salty cream in your morning brew?
Read about the rise of salt coffee, one of many specialty drinks in Vietnam that now appear on menus around the world.

PHOTOS OF THE DAY

Walton-on-the-Naze, England
A man sunbathes in front of a row of beach huts. Brits are enjoying warmer temperatures this week, with highs reaching the low-30Cs
Photograph: Dan Kitwood/Getty Images

A herd of milu deer wander through the mudflats on the Tiaozini wetlands, on the east coast of China. The pink plant is seepweed, similar to samphire
Photograph: VCG/Getty Images

​​​​​​​Glastonbury, UK
Festivalgoers at day two of the festival
Photograph: Leon Neal/Getty Images
Market Closes for June 28^th, 2024

Market Index	Close	Change
Dow Jones	39118.86	-45.20
		-0.12%
S&P 500	5460.48	-22.39
		-0.41%
NASDAQ	17732.61	-126.07
		-0.71%
TSX	21875.79	-66.37
		-0.30%

International Markets

Market Index	Close	Change
NIKKEI	39583.08	+241.54
		+0.61%
HANG SENG	17718.61	+2.14
		+0.01%
SENSEX	79032.73	-210.45
		-0.27%
FTSE 100*	8164.12	-15.56
		-0.19%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.503	3.474
CND. 30 Year Bond	3.393	3.359
U.S.    10 Year Bond	4.3961	4.2864
U.S. 30 Year Bond	4.5583	4.4257

Currencies

BOC Close	Today	Previous
Canadian $	0.7310	0.7296
US $	1.3680	1.3706

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4656	0.6823
US $	1.0713	0.9334

Commodities

Gold	Close	Previous
London Gold Fix	2323.60	2323.60
Oil
WTI Crude Future	81.74	80.90

Market Commentary:
📈 On this day in 2001, the U.S. Court of Appeals for the District of Columbia shot down portions of a blockbuster ruling that Microsoft was an illegal monopoly.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.3% at 21,875.79 in Toronto.
The move was the biggest since falling 0.4% on June 19 and follows the previous session’s increase of 0.7%.
Cameco Corp. contributed the most to the index decline, decreasing 5.0%.
First Quantum Minerals Ltd. had the largest drop, falling 7.2%.
Today, 110 of 226 shares fell, while 113 rose; 9 of 11 sectors were lower, led by materials stocks.
Insights
* This quarter, the index fell 1.3%
* This month, the index fell 1.8%
* So far this week, the index rose 1.5%, heading for the biggest advance since the week ended May 10
* The index advanced 10% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is 3% below its 52-week high on May 21, 2024 and 17% above its low on Oct. 27, 2023
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.7 on a trailing basis and 15 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.49t
* 30-day price volatility fell to 11.02% compared with 11.27% in the previous session and the average of 10.63% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -30.0057| -1.1| 15/36
Energy | -18.7911| -0.5| 18/21
Consumer Staples | -6.2942| -0.7| 2/9
Industrials | -5.9837| -0.2| 16/12
Utilities | -5.7016| -0.7| 7/8
Information Technology | -2.2330| -0.1| 5/5
Financials | -1.5974| 0.0| 20/7
Communication Services | -0.5985| -0.1| 2/3
Health Care | -0.2142| -0.3| 2/2
Real Estate | 2.1887| 0.5| 18/2
Consumer Discretionary | 2.8749| 0.4| 8/5
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Cameco | -10.8100| -5.0| -0.1| 17.8
First Quantum Minerals | -6.9320| -7.2| 38.8| 65.6
Restaurant Brands | 2.7200| 1.3| -51.3| -6.9
Bank of Montreal | 3.9750| 0.7| 56.6| -12.4
Enbridge | 5.7950| 0.8| 2.9| 2.0
US
By Rita Nazareth
(Bloomberg) — The stock market rally faded in the final stretch of a solid quarter, with traders keeping a close eye on any news regarding the US presidential race and remaining cautious ahead of Sunday’s elections in France.
Traders are rearranging their positions in the aftermath of the debate between Joe Biden and Donald Trump.
Biden’s shaky performance boosted sentiment around Trump’s odds for securing a second term in the White House.
Private prisons and health-insurance firms — some of the groups that would potentially win from another Trump presidency — rallied, while renewable energy and pot stocks sank.
Treasury curve-steepening also followed the presidential debate.
“There is no spin for President Joe Biden’s performance last night during his debate with former President Donald Trump,” said Libby Cantrill at Pacific Investment Management Co.
“For markets, the biggest takeaway from last night is that deficits will remain high and tariffs are likely going up, especially if Trump gets elected; the question is when this will be priced-into markets,” she noted.
JPMorgan Chase & Co.’s Marko Kolanovic says the S&P 500 will falter in coming months in the face of mounting headwinds, from a slowing economy to downward earnings revisions.
The gauge is poised to plunge to 4,200 by year-end, a roughly 23% drop.
After gaining almost 1% earlier Friday, the S&P 500 fell to around 5,460.
Long-term Treasuries largely underperformed shorter maturities.
Bonds had earlier gained as inflation data bolstered bets on Federal Reserve rate cuts.
The dollar edged lower Friday, while capping its sixth-straight week of gains — the best streak since February.
The US presidential election and its aftermath promises investors big market swings in the second half of the year, says Goldman Sachs Group Inc.’s Scott Rubner.
“I would be looking to trim exposure up here post July 4th,” Rubner wrote.
Andrew Brenner at NatAlliance Securities reiterated his comment that a Trump victory in the debate would put pressure on the long-end of the bond market.
“Again, we don’t like talking about politics, but everyone believes Trump won the debate on a weak performance from Biden,” he said. “Fears of what tariffs, lack of concern for the deficit (both parties), and continued fear of increasing Treasury issuance, will do for the curve… Steepen it out… That is what we have seen today…”
To rate strategists at Barclays Plc watching the presidential debate Thursday night, the trade was clear: buy inflation hedges in the US Treasury market.
With Trump appearing more likely to unseat Biden in the November election, the market should “be pricing in a considerable risk of higher-than-target inflation in the coming years, and this is from a starting point of our thinking they already offered structural value,” Barclays strategists Michael Pond and Jonathan Hill said in a note.
Stocks are heading into the second half having gained almost 15% this year.
Historically, a strong first half tends to be followed by above-average second-half returns, according to Adam Turnquist at LPL Financial.
“While elevated valuations, overbought conditions, and underwhelming market breadth point to a potential pause ahead, seasonal trends suggest momentum could continue in the second half,” he noted.
The S&P 500 has followed up a positive first-half return with an average second-half gain of 6%, Turnquist added.
Furthermore, when first-half gains were 10% or higher, the index posted average gains of 7.7% in the second half, with 83% of occurrences producing positive results.
Earlier in the session, traders kept a close eye on economic data.
US consumer sentiment declined by less than initially estimated on expectations inflationary pressures will moderate.
The Fed’s preferred measure of underlying US inflation decelerated. Household spending rebounded and incomes showed solid growth, offering some hope that price pressures can be tamed without lasting damage to consumers.
“From the market’s perspective, today’s PCE report was near perfect,” said David Donabedian at CIBC Private Wealth US. “The Fed’s favorite inflation indicator not only showed inflation was moving towards the Fed’s inflation target, but that the economy is resilient. Consumer spending was on the rise and take-home pay was also up after a couple of sluggish months.”
To Seema Shah at Principal Asset Management, while the inflation data is a relief and will be welcomed by the Fed, the policy path is not yet certain.
“A further deceleration in inflation, ideally coupled with additional evidence of labor market softening, will be necessary to pave the way for a first rate cut in September,” she noted.
Fed Bank of San Francisco President Mary Daly told CNBC said the latest inflation data indicates monetary policy is working, but said it’s too early to tell when it will be appropriate to lower borrowing costs.
Earlier Friday, her Richmond counterpart Thomas Barkin said the inflation battle still hasn’t been won, and the US economy is likely to remain resilient as long as unemployment remains low and asset valuations high.
“The soft inflation data will build the case that the Fed can start cutting rates in the coming months,” said Jeffrey Roach at LPL Financial. “As long as incomes grow at a healthy clip, consumers will keep spending. The key is the labor market and so now, we should shift our attention to next week’s nonfarm payroll release for a fresh look into the job market.”
The timing of the first rate cut matters because bonds rally in anticipation of that cut, according to Joe Kalish at Ned Davis Research.
“Any second half bond market outlook is contingent on Fed policy,” he said. “The timing of the first rate cut has historically been important for the bond market, as yields tend to peak 2-3 months before the first rate cut.”

Corporate Highlights:
* Nike Inc.’s management team, led by Chief Executive Officer John Donahoe, is facing growing criticism from Wall Street as a prolonged sales slump sparked the stock’s biggest rout since the company went public in 1980.
* Uber Technologies Inc. and Lyft Inc. agreed to a series of worker benefits to resolve a longstanding state lawsuit in Massachusetts that challenged drivers’ employment status as independent contractors, putting a stop to the companies’ bid to take the issue before voters in November.
* Rite Aid Corp. has been cleared to exit bankruptcy after winning court approval on a restructuring plan that’s poised to save the ailing pharmacy chain from liquidation by handing control of the business to key creditors.
* Microsoft Corp.’s $13 billion investment into OpenAI Inc. is set to come under added scrutiny from European Union’s antitrust watchdogs, who are poised to quiz rivals about the AI firm’s exclusive use of Microsoft’s cloud technology.
* Nokia Oyj has agreed to buy Infinera Corp. in a $2.3 billion deal that will expand the company’s networking products for data centers and increase its presence in the US, a potentially key source of growth as the boom in artificial intelligence drives demand for server capacity.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.5%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World Index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro was little changed at $1.0710
* The British pound was little changed at $1.2641
* The Japanese yen was little changed at 160.92 per dollar
Cryptocurrencies
* Bitcoin fell 2.2% to $60,082.15
* Ether fell 1.8% to $3,377.67
Bonds
* The yield on 10-year Treasuries advanced 11 basis points to 4.39%
* Germany’s 10-year yield advanced five basis points to 2.50%
* Britain’s 10-year yield advanced four basis points to 4.17%
Commodities
* West Texas Intermediate crude fell 0.3% to $81.53 a barrel
* Spot gold fell 0.2% to $2,324.07 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jessica Menton, Alexandra Semenova, Felice Maranz, Carmen Reinicke and Emily Forgash.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann
Men will not accept truth at the hands of their enemies, and truth is seldom offered to them by their friends. –Alexis de Tocqueville, 1805-1859.

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

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

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

Dear Friends,

Tangents: Happy Friday Eve.

June 27, 1954: The world’s first nuclear power plan tis activated. The reactor at Obninsk in present-day Russia
June 27, 1859: Happy Birthday to You song composed.
June 27, 1972: The video game company Atari was founded by Nolan Bushnell and Ted Dabney in Santa Clara, Calif. Go to article >>

Helen Keller, b. 1880.

Panda express: China sends two pandas to the San Diego Zoo
Two giant pandas are heading to San Diego in China’s first new loan to the US in more than 20 years.

Marilyn Monroe’s former home saved from demolition
The Los Angeles City Council unanimously voted to preserve Marilyn Monroe’s Brentwood home, where the star lived and died, as a Historic-Cultural Monument. It comes nearly a year after the new homeowners filed a request to have it demolished.

Elvis Presley’s actual blue suede shoes are up for auction
Fans have the opportunity to step into the King’s very own blue suede shoes as they go up for sale this week. Here’s how much they could fetch at auction

‘Space potato’ spotted by NASA Mars satellite is actually something much cooler
The starchy-looking moon Phobos, destined to crash into Mars’ surface, has been revealed in new detail by NASA’s Mars Reconnaissance Orbiter. The ‘space potato’ image was recently shared on NASA’s Instagram. Read More

‘Exceptional’ discovery reveals more than 30 ancient Egyptian tombs built into hillside
Archaeologists have unearthed more than 30 ancient Egyptian tombs that date to the Greco-Roman period, and reveal clues about those who once lived in this vibrant trading port. Read More.

Boiling rocks from Earth’s crust tore an ocean into Mongolia 410 million years ago
An ocean that opened up in what is now Mongolia 410 million years ago was created by a hot upwelling of rock known as a mantle plume.  Read More.

‘It’s like we opened a buffet’: Market Commentary:
📈 On this day in 1967, the world’s first cash point—a forerunner of today’s ATMs—was unveiled at a Barclays Bank branch in London. The machine allowed customers to withdraw up to £10, then equivalent to $28, at a time.
Sharks in Gulf of Mexico learn to steal food from fishing nets
Sharks in the Gulf of Mexico are learning to associate boat engines with food, leading to more and more cases of depredation, experts say. Read More.

PHOTOS OF THE DAY

Rainbow Valley conservation reserve, Northern Territory | Australia
Photographer Baillie Farley: ‘The central Australian Outback has some of the darkest southern night skies in the world. This image captures the breathtaking scene at Rainbow Valley conservation reserve, where the southern Milky Way gracefully arches above a remarkable formation of colourful sandstone. This area exudes a unique charm, with its vibrant hues and stunning geological formations creating a mesmerising landscape’
Photograph: Baillie Farley/2024 Milky Way photographer of the year

Glastonbury, UK
Performers entertain festival goers in the Theatre Field during day two of Glastonbury Festival
Photograph: Jim Dyson/Redferns/Getty Images

​​​​​​​Boston, US
A group of boys toss their friend into the water at Good Harbor beach during a heatwave
Photograph: Joseph Prezioso/Anadolu/Getty Images
Market Closes for June 27^th, 2024

Market Index	Close	Change
Dow Jones	39164.06	+36.26
		+0.09%
S&P 500	5482.87	+4.97
		+0.09%
NASDAQ	17858.68	+53.52
		+0.30%
TSX	21942.16	+148.26
		+0.68%

International Markets

Market Index	Close	Change
NIKKEI	39341.54	-325.53
		-0.82%
HANG SENG	17716.47	-373.46
		-2.06%
SENSEX	79243.18	+568.93
		+0.72%
FTSE 100*	8179.68	-45.65
		-0.56%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.474	3.486
CND. 30 Year Bond	3.359	3.367
U.S.    10 Year Bond	4.2864	4.3294
U.S. 30 Year Bond	4.4257	4.4620

Currencies

BOC Close	Today	Previous
Canadian $	0.7296	0.7296
US $	1.3706	1.3706

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4669	0.6817
US $	1.0705	0.9341

Commodities

Gold	Close	Previous
London Gold Fix	2323.60	2325.05
Oil
WTI Crude Future	80.90	82.08

Market Commentary:
📈 On this day in 1967, the world’s first cash point—a forerunner of today’s ATMs—was unveiled at a Barclays Bank branch in London. The machine allowed customers to withdraw up to £10, then equivalent to $28, at a time.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.7%, or 148.26 to 21,942.16 in Toronto.
The index advanced to the highest closing level since June 12.
Shopify Inc. contributed the most to the index gain, increasing 1.4%. MDA Space Ltd. had the largest increase, rising 13.5%.
Today, 184 of 226 shares rose, while 41 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This quarter, the index fell 1%
* This month, the index fell 1.5%
* So far this week, the index rose 1.8%, heading for the biggest advance since the week ended Nov. 17
* The index advanced 11% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is 2.7% below its 52-week high on May 21, 2024 and 17.4% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.7% in the past 5 days and fell 1.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.7 on a trailing basis and 14.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.47t
* 30-day price volatility rose to 11.27% compared with 11.05% in the previous session and the average of 10.52% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 40.3517| 0.6| 24/3
Energy | 36.0522| 0.9| 37/4
Information Technology | 25.2099| 1.4| 10/0
Materials | 11.6853| 0.4| 35/16
Industrials | 11.1757| 0.4| 22/6
Consumer Discretionary | 7.2351| 0.9| 9/4
Real Estate | 6.7602| 1.6| 20/0
Utilities | 5.8407| 0.7| 13/2
Consumer Staples | 5.7658| 0.6| 9/2
Health Care | 1.0429| 1.7| 4/0
Communication Services | -2.8497| -0.4| 1/4
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 10.7300| 1.4| -23.2| -11.8
Manulife Financial | 10.2900| 2.3| -48.7| 23.9
Brookfield Corp | 9.2860| 1.7| -33.1| 7.1
Enbridge | -2.2290| -0.3| -54.3| 1.2
Canadian Pacific Kansas | -6.4540| -0.9| -38.5| 3.2
Bank of Montreal | -8.2570| -1.4| 7.2| -13.0
US
By Rita Nazareth
(Bloomberg) — The world’s largest bond market rose after the latest batch of economic reports reinforced speculation the Federal Reserve will be able to cut interest rates this year to prevent a bigger US slowdown.
Traders gearing up for the Fed’s favored inflation gauge piled into Treasuries as several data points illustrated a downshift in growth tied to the central bank’s higher-for-longer stance.
The government marked down personal spending to an annualized 1.5% in the first quarter. Separate releases showed declines in orders and shipments of certain business equipment, weakness in the job market and a slide in homebuying.
To Chris Low at FHN Financial, the slowdown story got stronger.
“Continuing claims inched higher and are now the highest since late 2021 — sending a warning sign that the labor market could be softening,” said Jeff Roach at LPL Financial. “We expect both consumer and business activity to slow in the latter half of 2024, giving the Fed ample opportunity to begin cutting rates later this year.”
Treasury 10-year yields fell four basis points to 4.29%.
The S&P 500 fluctuated around 5,480.
In late trading, Nike Inc. sank as sales missed estimates.
Walgreens Boots Alliance Inc. tumbled 22% in regular hours after slashing its guidance.
Chewy Inc. and Petco Health and Wellness Co. whipsawed as Keith Gill —known as “Roaring Kitty” — posted a cartoon image of a dog on X.
Traders are pricing in roughly “one volatility point” of added premium Friday, the session after Joe Biden and Donald Trump’s debate, according to an analysis from Citigroup Inc. that compared current and expected volatility.
That assumes the effect of options expiry at quarter-end, another potential catalyst that could swing stocks, will be similar to that for triple-witching last week.
US PREVIEW: May PCE Inflation to Offer Welcome News for Fed Fed Bank of Atlanta President Raphael Bostic said he continues to expect one rate reduction this year amid signs inflation has resumed its decline.
His projection echoes that of the Federal Open Market Committee.
Earlier this month, Fed officials penciled in just one rate reduction for 2024, according to the median forecast.
Swap markets are pricing in about 45 basis points of easing in 2024, which would equate to less than two cuts.
Economists expect data Friday to show that the Fed’s preferred gauge of underlying inflation slowed to an annualized rate 2.6% last month from 2.8%.
While that’s the lowest reading since March 2021, it remains above the Fed’s goal for 2% inflation.
“A consensus move would conform with the narrative that the early-2024 reflationary pressures are fading, and the cooling trend seen during the second half of 2023 has once again resumed in the second quarter,” said Ian Lyngen and Vail Hartman at BMO Capital Markets. “Perhaps more importantly, investors are anticipating a round of inflation data that offers incremental support for a September rate cut.”
A string of weaker-than-estimated data points has sent the US version of Citigroup’s Economic Surprise Index to the lowest since August 2022.
The gauge measures the difference between actual releases and analyst expectations.
Worries about the strength of the labor market and the subsequent effect on consumer spending — in addition to the market’s reliance on just a handful of stocks — have caused consternation and warnings that the bull market needs a rest,
recalibration and maybe help from the Fed, according to Quincy Krosby at LPL Financial.
Should Friday’s PCE data disappoint, stagflation headlines will hit the tape, Krosby noted.
But if estimates hold or surprise with cooler data, it should help the market ease into July.
“Still, an overbought market and relatively expensive market based on just a handful of mega names may need to recalibrate and allow other sectors to co-exist with them or even begin to lead the market,” she said. “Such adjustments can
trigger pockets of volatility coupled with attractive pockets of opportunity.”
Ed Clissold at Ned Davis Research says persistent pessimism toward the economy and stocks has been a key driver of the bull market. And much of the pessimism has given way to optimism or neutral views.
“The sentiment shift puts more of the onus on fundamentals for the bull market to continue,” he said. “Our conclusion is that the stock market can no longer rely on the economy beating low expectations. Fundamentals will need to drive the bull market in the second half.”
For now, Clissold remains bullish on stocks — both on an absolute basis and relative to bonds and cash.
To Chris Senyek at Wolfe Research, volatility will likely continue to pick up, and this will generally benefit the “Magnificent Seven” megacaps and the overall momentum trade in the weeks ahead.
“More specifically, we expect these themes to continue to benefit from environment in which growth is slowing — but the Fed is expected to kick off a deep cutting cycle,” he noted.
“Further, our sense is that the biggest companies driving these trends will once again put up very solid results during the second-quarter earnings season.”
A survey conducted by 22V Research showed that investors largely expect artificial-intelligence companies to beat second-quarter earnings estimates.
About 59% of the investors surveyed think AI earnings will “beat” expectations and 36% believe they will “meet”.
Only 5% think they will “miss” forecasts.
Despite thinking that these companies will beat, the investors surveyed are unsure about the the stock reaction for AI companies, 22V said.
In a month when Nvidia Corp. briefly became the world’s largest company amid AI optimism, hedge funds were “aggressively” selling tech stocks, according to analysis from Goldman Sachs Group Inc.
This month’s net selling in the US tech sector is on track to be the largest on record going back in data since 2017, according to Goldman’s prime brokerage data.
The trimming of exposure by hedge funds is in sharp contrast to the record inflows seen into tech-related funds last week.

Corporate Highlights:
* Boeing Co.’s move to switch its bid for Spirit AeroSystems Holdings Inc. to a mostly stock deal is likely an effort to preserve cash and stave off ratings downgrades as the planemaker teeters on the edge of junk, according to credit analysts.
* Webtoon Entertainment Inc. shares climbed 9.5% in the online comics company’s debut after a US initial public offering that raised $315 million, priced at the upper end of a marketed range.
* Denim maker Levi Strauss & Co. reported quarterly sales that fell just short of estimates, underscoring Wall Street’s high expectations for the company.
* International Paper Co. plunged after Suzano SA said it would end its pursuit of the US paper giant.
* Customers of major US telecommunications companies including AT&T Inc., T Mobile US Inc. and Verizon Communications Inc. are reporting issues connecting to their networks while outside of the country.
* Target Corp. is lowering the bar to stop shoplifters, taking a tougher approach to further curb store theft that has weighed on operations.
* L’Oreal SA expects slower growth for the overall beauty market this year, according to its CEO, as weakness in China weighs on sales after years of rapid gains.

Key events this week:
* Japan Tokyo CPI, unemployment, industrial production, Friday
* US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday
* Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 rose 0.2%
* The Dow Jones Industrial Average was little changed
* The MSCI World Index was unchanged
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.2% to $1.0703
* The British pound rose 0.1% to $1.2639
* The Japanese yen was unchanged at 160.81 per dollar
Cryptocurrencies
* Bitcoin rose 0.7% to $61,385.55
* Ether rose 1.7% to $3,446.92
Bonds
* The yield on 10-year Treasuries declined four basis points to 4.29%
* Germany’s 10-year yield was little changed at 2.45%
* Britain’s 10-year yield was little changed at 4.13%
Commodities
* West Texas Intermediate crude rose 1.2% to $81.89 a barrel
* Spot gold rose 1.2% to $2,326.02 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Michael Msika, Carly Wanna, Richard Henderson, Divya Patil and Robert Brand.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel. –Maya Angelou, 1928-2014.

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

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

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

Dear Friends,

Tangents: Exactly 6 months from today to Boxing Day!

June 26, 1936: The world’s first practical helicopter lifts off.  The twin-rotor Focke-Wulf Fw 61 was first tested in Bremen, Germany.
June 26, 1948: The Berlin Airlift began in earnest as the United States, Britain and France began ferrying supplies to the isolated western sector of Berlin after the Soviet Union cut off land and water routes. Go to article >>

Fifty years ago today, the first official barcode was scanned at a grocery store in Troy, Ohio. The symbol of parallel lines has since become the most prevalent tracking tool for products around the world, though many dispute who deserves the credit for its eventual success.

Abner Doubleday, invented baseball, b.1819.
Pearl S. Buck, writer, b.1892.

Self-healing ‘living skin’ can make robots more humanlike — and it looks just as creepy as you’d expect
A combination of cultured cells and silicone could help robots appear more human in future thanks to realistic skin elasticity. And they can smile like us too. Read More.

China rover returns historic samples from far side of the moon — and they may contain secrets to Earth’s deep past
China’s Chang’e-6 lunar module has returned from the moon’s far side with samples in a historic mission. Its success is a key step toward understanding our planet’s early history, and a milestone in the race with the U.S. to reach the moon’s south pole. Read More.

US man gets kidney transplant while awake
Being able to transplant kidneys using only local anesthetic could shorten patients’ hospital stays and make the procedure accessible to more people, doctors say. Read More.

Lab-grown ‘mini-brains’ may have just confirmed a leading theory about autism
Excessive brain growth in the womb has been directly tied to autism in toddlers in new research involving lab-grown “mini-brains.” Full Story: Live Science (6/26)

Stunning photos show 44,000-year-old mummified wolf discovered in Siberian permafrost
Scientists perform necropsy on an ancient wolf pulled from Russian permafrost that may still have prey in its stomach. Read More.

Scientists discovered the oldest termite mounds on Earth — and they’re 34,000 years old. The world’s oldest termite mounds have been collecting carbon from the atmosphere for thousands of years.
Full Story: Live Science (6/26)

‘I’m amazed I lived to tell the tale’: Award-winning photographer on a life spent in the wild
Acclaimed photographer Greg du Toit has spent the past two decades photographing lions, rhinos and elephants. These are some of his most striking wildlife collections shown around the world.

Michael Phelps rips World Anti-Doping Agency for inconsistent enforcement of rules
Legendary Olympian Michael Phelps on Tuesday described an inconsistent application of anti-doping rules that is driving frustration among clean athletes at the Olympic Games.

Satellite launches to keep an eye on space weather
Forecasters will soon be able to see real-time mapping of lightning activity on Earth and keep a closer eye on solar storms unleashed by the sun, thanks to a new weather satellite.

The meme-ification of Anthony Bourdain.

PHOTOS OF THE DAY

Sharqia, Egypt
Children play in the fields as they join their farming families at the start of the rice planting season
Photograph: Ahmed Gamal/NurPhoto/Rex/Shutterstock

Seoul, South Korea
People cool themselves off in a fountain
Photograph: Ahn Young-joon/AP

​​​​​​​Great Massingham, UK
A Norfolk field rewilded by the landowner, with the soil being ploughed and harrowed before being left for nature to run its course, is covered in poppies
Photograph: Joe Giddens/PA
Market Closes for June 26^th, 2024

Market Index	Close	Change
Dow Jones	39127.80	+15.64
		+0.04%
S&P 500	5477.90	+8.60
		+0.16%
NASDAQ	17805.16	+87.51
		+0.49%
TSX	21793.90	+5.42
		+0.02%

International Markets

Market Index	Close	Change
NIKKEI	39667.07	+493.92
		+1.26%
HANG SENG	18089.93	+17.03
		+0.09
SENSEX	78674.25	+620.73
		+0.80%
FTSE 100*	8225.33	-22.46
		-0.27%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.486	3.382
CND. 30 Year Bond	3.367	3.263
U.S.    10 Year Bond	4.3294	4.2476
U.S. 30 Year Bond	4.4620	4.3778

Currencies

BOC Close	Today	Previous
Canadian $	0.7296	0.7319
US $	1.3706	1.3663

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4637	0.6832
US $	1.0681	0.9362

Commodities

Gold	Close	Previous
London Gold Fix	2325.05	2325.05
Oil
WTI Crude Future	82.08	82.08

Market Commentary:
📈 On this day in 1950, Wall Street tumbled 4.7%, a day after North Korea invaded the South, sparking the Korean War. Panicky investors redeemed nearly one-eighth of all mutual fund assets by year-end, missing out on the greatest decade in modern stock-market history when the S&P 500 gained 19.4% annually.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 21,793.90 in Toronto.
The move follows the previous session’s decrease of 0.3%.
Shopify Inc. contributed the most to the index gain, increasing 1.4%.
First Quantum Minerals Ltd. had the largest increase, rising 7.4%.
Today, 97 of 226 shares rose, while 127 fell; 5 of 11 sectors were higher, led by materials stocks.
Insights
* This quarter, the index fell 1.7%
* This month, the index fell 2.1%, heading for the biggest decline since October 2023
* The index advanced 11% in the past 52 weeks. The MSCI AC Americas Index gained 25% in the same period
* The S&P/TSX Composite is 3.4% below its 52-week high on May 21, 2024 and 16.6% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.3% in the past 5 days and fell 2.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.6 on a trailing basis and 14.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.47t
* 30-day price volatility fell to 11.05% compared with 11.07% in the previous session and the average of 10.49% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 34.7329| 1.3| 35/16
Industrials | 17.5871| 0.6| 20/8
Information Technology | 6.1293| 0.3| 2/8
Energy | 2.7936| 0.1| 18/22
Health Care | 0.0515| 0.1| 2/2
Consumer Discretionary | -1.7102| -0.2| 4/9
Real Estate | -5.7739| -1.3| 1/19
Communication Services | -6.0062| -0.9| 0/5
Utilities | -6.1605| -0.7| 4/11
Consumer Staples | -10.4748| -1.1| 6/5
Financials | -25.7525| -0.4| 5/22
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | 10.1400| 1.4| -38.4| -13.1
Enbridge | 9.8060| 1.4| -41.6| 1.5
First Quantum Minerals | 6.6850| 7.4| -15.0| 81.0
RBC | -5.2400| -0.4| -31.2| 8.0
Manulife Financial | -8.7850| -1.9| -23.4| 21.1
Couche-Tard | -12.0900| -3.0| 57.0| -1.2
US
By Rita Nazareth
(Bloomberg) — Big tech fell in late trading after Micron Technology Inc.’s outlook failed to meet the lofty expectations for the industry that has driven the bull market.
A $285 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) slipped after Micron said fiscal fourth-quarter sales will be $7.4 billion to $7.8 billion.
While the average analyst estimate was $7.58 billion, some projections were above $8 billion.
Fellow chipmaker Nvidia Corp., which has been on a roller-coaster ride, also dropped after the close of regular trading.
The recent market attempt to broaden out of the mega cap group was short-lived, with a bevy of measures still showing how market breadth remains weak — boosting uncertainty about the rally’s staying power.
Bifurcation between S&P 500 performance and breadth has reached one of the worst levels in three decades, according to Bloomberg Intelligence.
“The stock market is way too reliant on big tech — period and end of story,” said David Bahnsen at The Bahnsen Group.
“Whether or not the past week’s volatility in tech is the start of something deeper or if that reckoning is still forthcoming remains to be seen, but excessive investor sentiment, euphoria and overdone momentum always ends the same.”
The S&P 500 hovered near 5,480. FedEx Corp. surged on a bullish forecast and buyback plans.
The KBW Bank Index edged lower ahead of results of the Federal Reserve’s annual stress tests.
Amazon.com Inc. reached a $2 trillion valuation in a surge that took the e-commerce giant deeper into record territory.
Treasury 10-year yields topped 4.3%.
A $70 billion sale of five-year notes showed signs of good demand.
The dollar hit the highest since November.
The yen’s slide to the weakest since 1986 is boosting risk of intervention.
“The market’s ‘Engine Warning Light’ is on as we head into the hot summer months,” said Craig Johnson at Piper Sandler.
“Investors in the tech-heavy indices are experiencing F.O.M.O, while investors in the rest of the market feel R.O.M.O (regret of missing out) as overall market breadth remains weak outside a handful of mega-cap stocks.”
The S&P 500 is on track to deliver a strongly positive performance for the first six months of the year, fueled by a rally in the market’s largest names. Dividing the 500 Index stocks by capitalization quintiles shows a steady stairstep
pattern of performance: the larger the stock, the better it did, according to Jack Ablin at Cresset.
“Much of the divergence is attributable to a ‘higher for longer’ interest rate environment,” Ablin noted. “Investors reckon that mega cap tech companies – thanks to their ability to generate cash – are less reliant on borrowing and, those
companies that need to borrow have much easier access to capital than do their smaller brethren. So, where are markets headed in the second half of 2024?”
Ablin expects US equity markets to broaden later this year as the possibility of lower rates comes into focus.
“That means high-quality companies, particularly those with persistent dividend growth, will likely continue to lead their lower-quality counterparts in an incremental restrictive borrowing environment,” he added.
Bloomberg Intelligence’s sector rotation model says its time for a new leadership to emerge — and favors energy, health care and financials as the best-supported sectors to lead the index in the second half.
“Tech and the tech-adjacent communications sector have the strongest price momentum — but waning earnings dominance and lofty relative multiples pushed both groups down our ranks, wrote BI strategists led by Gina Martin Adams.
Mark Haefele at UBS Global Wealth Management, says that while Nvidia’s volatility has driven sentiment, the structural investment case for artificial intelligence remains intact on positive AI adoption and monetization trends.
He also holds a constructive outlook for broader equities amid solid fundamentals.
“We maintain our positive view on the AI story, but believe rightsizing tech exposure is key to navigate volatility while maintaining strategic exposure to the technology that we think is set to drive growth in the coming years,” he added.
For the second-quarter earnings season, the “Magnificent Seven” mega caps are still expected to account for the bulk of the growth for the overall S&P 500, according to Ryan Grabinski at Strategas.
“What remains encouraging to us is that the estimates for the remaining 493 are improving starting in the third quarter as growth rates for both the top of the market and the rest of the market normalize,” he noted.
“Should this broadening come to fruition, it would be an encouraging sign for the sustainability of the bull market.”
The S&P 500 is on pace to enter the second half with a gain of about 15% since the start of 2024. And July has ranked as the strongest month of the year for the S&P 500 both since its inception and more recently over the past two decades, according to data compiled by Bespoke Investment Group.
“What is more interesting is that zeroing in on the past 20 years, July’s outperformance is the eye of the storm,” Bespoke noted. “July is sandwiched between June, August, and September — which all rank as the three worst months of the year averaging declines of 0.17%, 0.10%, and 0.7%, respectively.”

Corporate Highlights:
* Interactive Brokers Group Inc. took a $48 million hit after a New York Stock Exchange trading disruption this month and is considering its options to recover the money, including possible legal action.
* Whirlpool Corp. surged after Reuters reported that Robert Bosch GmbH is considering an offer for the appliance maker.
* A mechanic who worked on Boeing Co.’s 787 aircraft alleged he observed improper manufacturing at a subcontractor for the Dreamliner program, according to a statement from attorneys representing him as a whistleblower.
* A top McDonald’s Corp. executive reiterated that the company’s previous US test of plant-based meat didn’t work out and added that the burger chain’s diners don’t go to its restaurants for salads. Beyond Meat Inc. has partnered with McDonald’s to produce the McPlant burger.
* Moderna Inc. shares sank after new data showed the efficacy of its RSV shot fell sharply in the second year and was lower than that of rival vaccines.
* General Mills Inc., the maker of Cheerios, gave a disappointing sales outlook as shoppers continue to pull back amid climbing supermarket prices.
* Southwest Airlines Co. reduced its estimate for unit revenue in the second quarter, a sign of ongoing challenges at the carrier as it fends off an activist push for a management overhaul.
* Volkswagen AG is taking another swing in its long struggle to catch up with Tesla Inc., plowing $5 billion into a tie-up with the US company’s closest would-be rival, Rivian Automotive Inc.
* Airbus SE has been warning airlines that some of their aircraft deliveries due in the next two years risk being delayed, an indication that supply-chain glitches at the world’s largest plane maker might extend well beyond the current year.

Key events this week:
* China industrial profits, Thursday
* Eurozone economic confidence, consumer confidence, Thursday
* US durable goods, initial jobless claims, GDP, Thursday
* Nike releases earnings, Thursday
* Japan Tokyo CPI, unemployment, industrial production, Friday
* US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday
* Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World Index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.3% to $1.0680
* The British pound fell 0.5% to $1.2623
* The Japanese yen fell 0.7% to 160.80 per dollar
Cryptocurrencies
* Bitcoin fell 1.5% to $60,968.31
* Ether was little changed at $3,408.48
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 4.31%
* Germany’s 10-year yield advanced four basis points to 2.45%
* Britain’s 10-year yield advanced five basis points to 4.13%
Commodities
* West Texas Intermediate crude fell 0.2% to $80.64 a barrel
* Spot gold fell 0.9% to $2,298.61 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Alexandra Semenova.

Have a lovely day.

Be magnificent!
As ever,

Carolann
There is a crack in everything.  That’s how the light gets in. -Leonard Cohen, 1934-2016.

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

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

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

Dear Friends,

Tangents:
June 25, 1950: War broke out on the Korean peninsula as forces from the communist North invaded the South.
June 25, 1967: The world’s first live global satellite TV program is aired.  The Beatles premiered their song “All You Need Is Love” on the show.  Some 400 million viewers tuned in.

George Orwell, b.1903.
Carly Simon, singer/songwriter, b. 1945

‘The early universe is nothing like we expected’: James Webb telescope reveals ‘new understanding’ of how galaxies formed at cosmic dawn
Astronomers using the James Webb Space Telescope have observed five extremely dense proto-globular clusters along a hair-thin arc of glittering stars. The discovery could help them understand how the earliest galaxies formed.
Read More.

Medieval woman buried alongside 23 warrior monks in Spain was likely a warrior herself, study finds
“We should picture her as a warrior of about forty years of age, just under five feet tall, neither stocky nor slender and skillful with a sword”. Read More.

2,000-year-old Roman military sandal with nails for traction found in Germany
Archaeologists used X-rays to analyze the remains of a sandal unearthed near a Roman fort in Bavaria. Full Story: Live Science (6/25)

Gaia space telescope helps astronomers image hidden objects around bright stars
The Gaia space telescope has spotted the dim companions of eight bright stars, suggesting we can expect new glimpses of distant planets. Read More.

New AI algorithm flags deepfakes with 98% accuracy — better than any other tool out there right now
Recent research into methods for spotting AI-generated video looks for specific markers not found in standard digital images. Read More.

Florida Panthers capture first NHL title in franchise history
The Florida Panthers nabbed the Stanley Cup on Monday after defeating the Edmonton Oilers in a thrilling Game 7!

PHOTOS OF THE DAY

Warsaw, Poland
People standing on the banks of the Vistula River look on as a large wreath floats on the water. Wreaths of field flowers are thrown into the river at the summer solstice to bring good luck
Photograph: Wojtek Radwański/AFP/Getty Images

Dorset, UK
People take part in the world nettle eating competition at Dorset Nectar Cider Farm in Waytown. Participants eat leaves from 2ft-long stalks for half an hour and those who eat the longest length of nettles are crowned Nettle King and Nettle Queen
Photograph: Finnbarr Webster/Getty Images

​​​​​​​Water bursts from the pipeline at the Upper Chhandi Khola hydropower project, which runs down the Chhandi river near Taap, where the honey collecting takes place
Market Closes for June 25^th, 2024

Market Index	Close	Change
Dow Jones	39112.16	-299.05
		-0.76%
S&P 500	5469.30	+21.43
		+0.39%
NASDAQ	17717.66	+220.84
		+1.26%
TSX	21788.48	-60.11
		-0.28%

International Markets

Market Index	Close	Change
NIKKEI	39173.15	+368.50
		+0.95%
HANG SENG	18072.90	+45.19
		+0.25
SENSEX	78053.52	+712.44
		+0.92%
FTSE 100*	8247.79	-33.76
		-0.41%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.382	3.332
CND. 30 Year Bond	3.263	3.248
U.S.    10 Year Bond	4.2476	4.2321
U.S. 30 Year Bond	4.3778	4.3651

Currencies

BOC Close	Today	Previous
Canadian $	0.7319	0.7321
US $	1.3663	1.3659

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4631	0.6835
US $	1.0710	0.9337

Commodities

Gold	Close	Previous
London Gold Fix	2325.05	2335.05
Oil
WTI Crude Future	82.08	82.84

Market Commentary:
📈 On this day in 1974, Texas Instruments and three of its engineers received a U.S. patent for their hand-held aluminum calculator. The gizmo could add, subtract, multiply and divide, and had a price tag of between $84.95 and $119.95.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.3% at 21,788.48 in Toronto.
The move follows the previous session’s increase of 1.4%.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 1.0%.
Ballard Power Systems Inc. had the largest drop, falling 6.3%.
Today, 154 of 226 shares fell, while 69 rose; 9 of 11 sectors were lower, led by materials stocks.
Insights
* This quarter, the index fell 1.7%
* This month, the index fell 2.2%, heading for the biggest decline since October 2023
* The index advanced 12% in the past 52 weeks. The MSCI AC Americas Index gained 25% in the same period
* The S&P/TSX Composite is 3.4% below its 52-week high on May 21, 2024 and 16.6% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 0.8% in the past 5 days and fell 2.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.6 on a trailing basis and 14.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.47t
* 30-day price volatility rose to 11.07% compared with 11.05% in the previous session and the average of 10.46% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -27.1126| -1.0| 7/44
Energy | -14.9099| -0.4| 11/30
Consumer Discretionary | -12.3845| -1.6| 2/11
Communication Services | -10.9422| -1.6| 1/4
Industrials | -8.2580| -0.3| 10/17
Financials | -7.1527| -0.1| 13/14
Real Estate | -3.4240| -0.8| 2/18
Utilities | -1.8300| -0.2| 4/11
Health Care | -0.4967| -0.8| 1/3
Consumer Staples | 8.9145| 1.0| 9/1
Information Technology | 17.4896| 1.0| 9/1
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
TD Bank | -8.9180| -1.0| -31.2| -12.8
Canadian Natural Resources | -5.3950| -0.7| -55.7| 11.4
Dollarama | -5.0080| -2.0| -32.6| 29.3
Manulife Financial | 4.7690| 1.1| -7.8| 23.5
Couche-Tard | 5.4880| 1.4| -21.2| 1.9
Shopify | 5.4940| 0.7| 7.2| -14.2
US
By Rita Nazareth
(Bloomberg) — A rally in the world’s largest technology companies lifted stocks, with Nvidia Corp. climbing 7% after a $430 billion selloff.
Equities extended their June advance as the giant chipmaker led gains in the “Magnificent Seven” cohort of mega-caps.
The company snapped a three-day rout that had pushed it into a technical correction.
In late trading, FedEx Corp. — a barometer of economic growth — jumped on a bullish forecast.
Treasuries barely budged after a $69 billion two-year US sale got the expected yield and good demand, kicking off this week’s trio of auctions.
US consumer confidence eased on a more muted outlook for business conditions, the job market and incomes.
Federal Reserve Governor Michelle Bowman said she sees a number of upside risks to the inflation outlook.
Her colleague Lisa Cook said it will be appropriate to reduce rates “at some point,” adding that she expects inflation to improve gradually this year.
“We believe the bull market we are in isn’t going to be derailed until either we go into recession or the Fed changes interest-rate policy from potential cuts to actual hikes,” said Chris Zaccarelli at Independent Advisor Alliance.
“Expect volatility between now and the end of the year, but don’t expect the bull market to end without a change in the economy or Fed posture.”
The S&P 500 closed near 5,470.
The Nasdaq 100 climbed 1.2%.
Carnival Corp. surged almost 9% on a solid outlook.
Treasury 10-year yields were little changed at 4.23%.
Bitcoin topped $62,000.
The loonie fluctuated as inflation unexpectedly surged in Canada, a setback for policymakers as they weigh further rate cuts next month.
Investors are likely to keep piling into US stocks at the sign of any pullback as the Fed edges closer to reducing interest rates, according to Societe Generale SA, which anticipates the easing cycle will begin in early 2025.
Even after an about 15% rally year-to-date, strategists led by Manish Kabra expect the S&P 500 to “stay in buy-the-dip mode, with the next up leg coming closer to a Fed rate-cutting cycle.”
Bank of America Corp. said clients were net sellers of US equities for the first time in a month last week, with outflows led by hedge funds and institutions as retail investors snapped up shares.
Outflows by BofA clients totaled net $1.6 billion in the week ended June 21, quantitative strategists led by Jill Carey Hall said Tuesday in a note to clients.
At the sector level, technology and communications services led inflows.
Financials saw the largest outflows.
Meantime, Commodity Trading Advisors, or CTAs, are estimated to hold $130 billion worth of long positions in global equities, after selling $29 billion last week, and are likely to sell more in every market scenario this week, according to Goldman Sachs Group Inc.
Equity derivatives and flows specialist Cullen Morgan estimates that CTAs would sell $36 billion of equities, including $2.8 billion of S&P 500 futures, this week in a falling market, and $15 billion of stocks in a flat market.
Even if stocks were to rise, they are expected to sell $3 billion of stocks.
Nvidia’s recent selloff isn’t reflective of a worsening outlook for tech or the broader market, as other demand signals are positive, according to UBS.
“Nvidia’s correction shouldn’t be mistaken as a warning signal on either the structural investment case for AI or the broader equity outlook,” wrote Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management
To Neuberger Berman Group’s Steve Eisman, the chipmaker’s three-day plunge is no more than a blip.
The senior portfolio manager, best known for his short bet against subprime mortgages ahead of the global financial crisis, owns “a lot” of the chipmaker’s shares and considers it a long-term play that’s going to be relevant for years to come, he said Tuesday in an  interview on Bloomberg Television.

Corporate Highlights:
* Paramount Global is talking to potential partners for its streaming TV business internationally, saying a deal could “significantly transform” the online service.
* Exxon Mobil Corp. took the first step toward its seventh oil project in Guyana, a clear signal the supermajor intends to expand crude output from the South American nation into the next decade.
* Boeing Co. has offered to acquire Spirit AeroSystems Holdings Inc. for about $35 a share in a deal funded mostly with stock, according to people familiar with the matter.
* Airbus SE is coming up short on the millions of parts that make up the company’s commercial aircraft, and the situation is getting worse rather than better for the world’s largest plane maker.
* Microsoft Corp. risks a hefty European Union fine after regulators accused the company of abusing its market power by bundling the Teams video-conferencing app to its other business software.
* OpenAI is taking additional steps to curb China’s access to artificial intelligence software, enforcing an existing policy to block users in nations outside of the territory it supports.

Key events this week:
* US new home sales, Wednesday
* China industrial profits, Thursday
* Eurozone economic confidence, consumer confidence, Thursday
* US durable goods, initial jobless claims, GDP, Thursday
* Nike releases earnings, Thursday
* Japan Tokyo CPI, unemployment, industrial production, Friday
* US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday
* Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.2%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World Index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.0714
* The British pound was little changed at $1.2687
* The Japanese yen was little changed at 159.63 per dollar
Cryptocurrencies
* Bitcoin rose 4.3% to $62,041.31
* Ether rose 3.2% to $3,414.28
Bonds
* The yield on 10-year Treasuries was little changed at 4.23%
* Germany’s 10-year yield was little changed at 2.41%
* Britain’s 10-year yield was little changed at 4.08%
Commodities
* West Texas Intermediate crude fell 1% to $80.80 a barrel
* Spot gold fell 0.7% to $2,319.40 an ounce
This story was produced with the assistance of Bloomberg Automation.

–With assistance from Vildana Hajric, Alex Nicholson, Jeran Wittenstein, Ryan Vlastelica, Alexandra Semenova, Aya Wagatsuma and Jason Scott.
Have a lovely evening.

Be magnificent!

As ever,

Carolann
No amount of ability is of the slightest avail without honor. –Thomas Carlyle, 1795-1881.

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

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

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

Dear Friends,

Tangents: Happy Monday.  St. Jean Baptiste Day, Quebec.

On June 24, 1997, the Air Force released a report on the so-called “Roswell Incident,” suggesting the alien bodies witnesses reported seeing in 1947 were actually life-sized dummies.  Go to article >>

2022: US Supreme court overturns Roe v. Wade.
1497: Discovery of Newfoundland.
Jack Dempsey, boxer, b.1895.

Taylor Swift stuns London crowd by bringing Travis Kelce on stage during Eras Tour concert
The pop star surprised her fans with a special skit featuring her Super Bowl champ boyfriend. See the moment here.
Barcelona ending apartment rentals by foreign tourists
The Spanish city announced it will bar apartment rentals to tourists by 2028.

Human ancestor ‘Lucy’ was hairless, new research suggests. Here’s why that matters.
Lucy is popularly depicted as being hairy, but new evidence suggests she wasn’t. The discovery prompts new questions about the history of nudity. Read More.

1,600-year-old coin discovered in Channel Islands features Roman emperor killed by invading Goths
Archaeologists on the Channel Islands off the coast of France have found two coins from the Roman era. Read More.

James Webb telescope spots a dozen newborn stars spewing gas in the same direction — and nobody is sure why
The James Webb telescope has spotted a peculiar group of baby stars firing enormous jets into space at nearly the exact same angle. The discovery could hold new insights into how stars are born. Read More.

AI models could devour all of the internet’s written knowledge by 2026
A new estimate suggests that AI could use up all of the internet’s text data within the next few years. The next recourse could be private information, a new study warns. Read More.

Have giant humans ever existed?
Some humans have always stood head and shoulders above their peers, but there’s nothing mythological about these real-life human giants. Read More.

PHOTOS OF THE DAY

Wehrheim, Germany
A stork leaves its nest on the outskirts of Wehrheim near Frankfurt
Photograph: Michael Probst/AP

New York, US
A lightning bolt strikes One World Trade Center during a thunderstorm, seen from Jersey City
Photograph: Gary Hershorn/Getty Images

Yichang, China
Tourists watch the sunrise from a viewing platform on the Three Gorges Dam
Photograph: Costfoto/NurPhoto/Rex/Shutterstock
Market Closes for June 24^th, 2024

Market Index	Close	Change
Dow Jones	39411.21	+260.88
		+0.67%
S&P 500	5447.87	-16.75
		-0.31%
NASDAQ	17496.82	-192.54
		-1.09%
TSX	21848.59	+293.73
		+1.36%

International Markets

Market Index	Close	Change
NIKKEI	38804.65	+208.18
		+0.54%
HANG SENG	18027.71	-0.81
		—
SENSEX	77341.08	+131.18
		+0.17%
FTSE 100*	8281.55	+43.83
		+0.53%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.332	3.347
CND. 30 Year Bond	3.248	3.267
U.S.    10 Year Bond	4.2321	4.2554
U.S. 30 Year Bond	4.3651	4.3971

Currencies

BOC Close	Today	Previous
Canadian $	0.7321	0.7304
US $	1.3659	1.3692

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4659	0.6822
US $	1.0732	0.9318

Commodities

Gold	Close	Previous
London Gold Fix	2335.05	2351.60
Oil
WTI Crude Future	82.84	82.17

Market Commentary:
📈 On this day in 1964: AT&T’s Picturephone was tested by the president’s wife. Lady Bird Johnson spoke from Washington, D.C. to appear on a screen in New York City’s Grand Central station. A three-minute call between the two cities cost $16.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 1.4% at 21,848.59 in Toronto.
The move was the biggest gain since May 6 and follows the previous session’s decrease of 0.1%.
Today, financials stocks led the market higher, as 10 of 11 sectors gained; 175 of 226 shares rose, while 50 fell.
Royal Bank of Canada contributed the most to the index gain, increasing 2.2%.
Africa Oil Corp. had the largest increase, rising 10.3%.
Insights
* In the past year, the index had a similar or greater gain seven times. The next day, it advanced after all seven occasions
* This quarter, the index fell 1.4%
* This month, the index fell 1.9%
* The index advanced 13% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is 3.1% below its 52-week high on May 21, 2024 and 16.9% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.2% in the past 5 days and fell 2.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.5 on a trailing basis and 14.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.42t
* 30-day price volatility rose to 11.05% compared with 10.15% in the previous session and the average of 10.36% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 111.0173| 1.7| 24/3
Energy | 84.5916| 2.2| 36/5
Materials | 28.2219| 1.1| 33/19
Industrials | 22.4664| 0.7| 19/8
Utilities | 19.3744| 2.4| 13/2
Consumer Staples | 11.2774| 1.2| 8/3
Consumer Discretionary | 9.4571| 1.2| 12/1
Real Estate | 9.0826| 2.1| 19/1
Communication Services | 6.9227| 1.0| 5/0
Health Care | 0.5521| 0.9| 3/1
Information Technology | -9.2549| -0.5| 3/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | 30.3600| 2.2| 21.8| 8.3
Canadian Natural Resources | 22.9300| 3.2| -50.7| 12.3
TD Bank | 17.9600| 2.0| 64.6| -11.9
Celestica | -3.1300| -4.9| 67.1| 87.7
Cameco | -5.5890| -2.6| 1.7| 20.6
Shopify | -10.4800| -1.4| 40.0| -14.9
US
By Rita Nazareth
(Bloomberg) — Stocks lost traction as an about $400 billion plunge in Nvidia Corp. raised speculation that the rally in the industry that has powered the bull market was due for a breather.
While various sectors outside the technology world advanced on Monday, Nvidia extended a three-day rout to 13% — crossing the technical threshold of a correction.
The chipmaker at the heart of the artificial-intelligence revolution has become the most-expensive stock in the S&P 500.
It remains up almost 140% this year, making it the second-best performer in the benchmark gauge, behind Super Micro Computer Inc., another favorite AI play.
Following a tech-led rally, Deutsche Bank’s Binky Chadha said US equities are set to pause.
There’s a lot of good news baked into markets, and if that optimism proves unjustified, there could be downside risks, Lori Calvasina at RBC Capital Markets noted.
To John Stoltzfus at Oppenheimer, while the bull market appears sustainable, some profit-taking should be expected.
“We remain concerned about a near-term unwind of many year-to-date leaders,” said Jonathan Krinsky at BTIG. “If the S&P 500 is going to avoid a bigger pullback into July, bulls need to see continued rotation below the surface.”
The S&P 500 fell below 5,450.
Energy and financial shares rose as tech retreated.
The Nasdaq 100 lost 1.2% after coming close to the 20,000 mark last week.
Nvidia sank 6.7%.
A gauge of chipmakers dropped 3%, with 29 of its 30 stocks down.
The Dow Jones Industrial Average outperformed.
Treasury 10-year yields fell two basis points to 4.24%.
Bitcoin slumped below $60,000.
Losses are piling up in the crypto market after its second-worst weekly decline of 2024, a reflection of cooling demand for Bitcoin exchange-traded funds and uncertainty over monetary policy.
More than a quarter of respondents in the latest MLIV Pulse survey plan to cut their stock holdings over the next month.
That compares to 19% who expect to add exposure, and the gap between the potential sellers and buyers in the largest since October.
The S&P 500 is expected to close the year at 5,606, according to a median of 586 responses.
That’s about 2.5% higher than current levels, indicating that the rally has little left after an almost 15% gain so far in 2024.
Additionally, almost half of survey participants expect a correction to begin later this year.
To Matt Maley at Miller Tabak, if the weakness in a few big-cap tech names spills over into the rest of the group, it’s likely going to create some problems for the broad market.
At least over the near-term.
“A decline in the tech sector is certainly possible, even if the sector is going to do well during the summer months overall,” Maley noted. “Even if you agree with the most-bullish scenario for the AI phenomenon for the second half of 2024, no group moves in a straight line.”
The strategist noted that the upcoming results from Micron Technology Inc. on Wednesday could be key on that front.
“The stock market is not in a bubble, and while mega-cap growth stock valuations are stretched, stock prices have not decoupled from fundamentals as they did during the tech bubble of 2000,” said Emily Bowersock Hill at Bowersock Capital Partners. “Right now, the market is rewarding companies for delivering strong earnings, and punishing those that do not deliver.”
Just a handful of “higher quality” mega-caps driving the performance of US stocks shows the market is focusing more on softening economic growth, than on inflation and rates, according to Morgan Stanley strategists led by Mike Wilson.
Stick to high quality large caps and defensives, they added.
The team also highlighted that a “narrow breadth” is not necessarily a bad thing going by historic performance.
Until growth slows in “a more meaningful way,” the team expects narrow market performance to persist.

Corporate Highlights:
* Trump Media & Technology Group Corp. surged after an announcement late Friday that the firm expected to receive more than $69.4 million in proceeds from the cash exercise of warrants last week.
* Oracle Corp. warned investors that a new law potential banning TikTok in the US threatens to hurt its financial results.
* Apple Inc. risks billions of euros of new fines over its App Store rules as European Union antitrust regulators escalated a growing conflict over rules that strike at the heart of the iPhone maker’s business model.
* Airbus SE cut its earnings and aircraft-delivery goals for the year as persistent supply-chain issues continue to deprive the European plane maker of vital components, dealing a setback to the company at a time when demand for its jets is at a record.
* DuPont de Nemours Inc.’s water treatment business, which the US chemicals group is planning to spin out, is drawing separate takeover interest from potential industry buyers, people with knowledge of the matter said.
* Novo Nordisk A/S plans to invest $4.1 billion in another US factory, plowing more money into its biggest market amid rising discontent there over the cost of its obesity and diabetes drugs.
* Alnylam Pharmaceuticals Inc. soared after its drug succeeded in treating a progressive and deadly form of heart disease, potentially opening up a new avenue for the company’s top-selling product.

Key events this week:
* US Conference Board consumer confidence, Tuesday
* Fed’s Lisa Cook, Michelle Bowman speak, Tuesday
* US new home sales, Wednesday
* China industrial profits, Thursday
* Eurozone economic confidence, consumer confidence, Thursday
* US durable goods, initial jobless claims, GDP, Thursday
* Nike releases earnings, Thursday
* Japan Tokyo CPI, unemployment, industrial production, Friday
* US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday
* Fed’s Thomas Barkin speak, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.1%
* The Dow Jones Industrial Average rose 0.7%
* The MSCI World Index was little changed
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.4% to $1.0736
* The British pound rose 0.3% to $1.2687
* The Japanese yen rose 0.1% to 159.64 per dollar
Cryptocurrencies
* Bitcoin fell 6.7% to $59,418.56
* Ether fell 3.8% to $3,303.63
Bonds
* The yield on 10-year Treasuries declined two basis points to 4.24%
* Germany’s 10-year yield was little changed at 2.42%
* Britain’s 10-year yield was little changed at 4.08%
Commodities
* West Texas Intermediate crude rose 1.2% to $81.68 a barrel
* Spot gold rose 0.5% to $2,332.46 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Kasia Klimasinska, Ryan Vlastelica, Jeran Wittenstein, Carly Wanna, Sujata Rao, Catherine Bosley and Matthew Burgess.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Everybody wants to be somebody; nobody wants to grow. –Johann von Goethe, 1749-1832.

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

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

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

Dear Friends,

Tangents: Happy Friday.  Full moon tonight.

June 21, 1982: John Hinckley Jr. was found innocent by reason of insanity in the shootings of President Ronald Reagan and three others.  Go to article >>
June 21,2009: Greenland assumes self-rule.  The island had been administered by Denmark (earlier Denmark-Norway) for centuries.

Jean-Paul Sartre, existentialist, b.1905.

Giant river system that existed 40 million years ago discovered deep below Antarctic ice
“There was this gigantic river system”: Researchers find ancient lost world deep beneath Antarctic ice. Read More.

Supermassive black hole roars to life before astronomers’ eyes in world-1st observations
Astronomers may be watching a supermassive black hole “waking up” from a long slumber for the first time ever. The researchers think the black hole may have gotten its hands on a glut of new material to devour, causing an uptick in brightness. Read More.

Newfound dinosaur with giant, horned headpiece named after iconic Norse god
A newly identified dinosaur with large, ornate horns on its massive head shield has been named after a famous Norse god who sported a similar headpiece in recent Marvel movies. Read More.

‘Immortal’ stars at the Milky Way’s center may have found an endless energy source, study suggests
Strange stars clustered near the Milky Way’s center are much younger than theory predicts is possible. New research suggests their youth could actually be eternal — and fueled by annihilating dark matte. Read More.

This AI-powered robot has worked out how to solve a Rubik’s Cube in just 0.305 seconds
Footage shows the record-breaking TOKUFASTbot solving a Rubik’s Cube so fast that it appears to happen in a single move. Read More.

Dramatic video captures smash-and-grab jewelry robbery
Nearly $2 million in jewelry was stolen in a California heist. See the shocking video of around 20 suspects breaking into display cases.

Bugatti’s new car is $4 million
The ultra-rich are eyeing a new Bugatti hybrid with 1,800 horsepower. Here’s why it has an astronomical price tag.

PHOTOS OF THE DAY

A mute swan is reflected in the waters of Tice’s Meadow Nature Reserve, Surrey, UK
Photograph: Jon Hawkins/Mediadrumimages

Stonehenge, UK
People watch the sun rise as they take part in the summer solstice in Wiltshire
Photograph: Andrew Matthews/PA

Niterói, Brazil
A humpback whale (Megaptera novaeangliae) jumps off the coast in Rio de Janeiro state
Photograph: Mauro Pimentel/AFP/Getty Images
Market Closes for June 21^st, 2024

Market Index	Close	Change
Dow Jones	39150.33	+15.57
		+0.04%
S&P 500	5464.62	-8.55
		-0.16%
NASDAQ	17689.36	-32.23
		-0.18%
TSX	21554.86	-26.49
		-0.12%

International Markets

Market Index	Close	Change
NIKKEI	38596.47	-36.55
		-0.09%
HANG SENG	18028.52	-306.80
		-1.67%
SENSEX	77209.90	-269.03
		-0.35%
FTSE 100*	8237.72	-34.74
		-0.42%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.347	3.343
CND. 30 Year Bond	3.267	3.270
U.S.    10 Year Bond	4.2554	4.2594
U.S. 30 Year Bond	4.3971	4.3963

Currencies

BOC Close	Today	Previous
Canadian $	0.7304	0.7307
US $	1.3692	1.3685

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4645	0.6828
US $	1.0697	0.9349

Commodities

Gold	Close	Previous
London Gold Fix	2351.60	2324.25
Oil
WTI Crude Future	82.17	82.17

Market Commentary:
📈 On this day in 1970: The Penn Central, one of the world’s largest and oldest railroad operators, declared bankruptcy when the government refused to guarantee $200 million in emergency loans.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.1% at 21,554.86 in Toronto.
The move follows the previous session’s increase of 0.3%.
Canadian Natural Resources Ltd. contributed the most to the index decline, decreasing 1.4%.
Ballard Power Systems Inc. had the largest drop, falling 6.0%.
Today, 149 of 222 shares fell, while 70 rose; 6 of 11 sectors were lower, led by materials stocks.
Insights
* This quarter, the index fell 2.8%
* This month, the index fell 3.2%, heading for the biggest decline since October 2023
* So far this week, the index fell 0.4%
* The index advanced 9.4% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is 4.4% below its 52-week high on May 21, 2024 and 15.3% above its low on Oct. 27, 2023
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.3 on a trailing basis and 14.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.42t
* 30-day price volatility fell to 10.15% compared with 10.16% in the previous session and the average of 10.18% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -34.8803| -1.3| 7/42
Energy | -33.4109| -0.9| 5/35
Real Estate | -1.8161| -0.4| 4/16
Communication Services | -1.0265| -0.2| 2/3
Utilities | -0.6259| -0.1| 8/7
Health Care | -0.1078| -0.2| 1/3
Industrials | 0.3473| 0.0| 10/16
Consumer Discretionary | 3.3146| 0.4| 4/9
Consumer Staples | 6.7322| 0.7| 6/4
Financials | 9.9114| 0.2| 15/12
Information Technology | 25.0932| 1.4| 8/2
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Canadian Natural Resources | -10.2200| -1.4| 55.5| 8.7
Barrick Gold | -6.5180| -2.3| 294.3| -5.3
Suncor Energy | -5.6950| -1.2| 38.3| 18.3
Couche-Tard | 5.2710| 1.3| 407.8| 0.0
Constellation Software | 8.8710| 1.7| 461.9| 16.0
Shopify | 13.8800| 1.9| 445.2| -13.7
US
By Rita Nazareth
(Bloomberg) — Wall Street’s massive expiration of options not only left stock traders more cautious, it also drove one of the leaders of the bull market to a roller-coaster ride.
Volume soared at the close of trading.
It was estimated that $5.5 trillion expired during the quarterly event ominously known as “triple witching” in which derivatives contracts tied to equities, index options and futures mature.
Nearly 18 billion shares changed hands on US exchanges Friday.
That’s over 55% above the three-month average.
This time around, Nvidia Corp. played an added role.
The value of contracts tied to the chipmaker due Friday was the second-largest of any underlying asset, lagging only the S&P 500.
And the expiration coincided with index rebalancing by S&P Dow Jones Indices.
To Steve Sosnick at Interactive Brokers, the “key” rebalance was set to occur in the Technology Select Sector Index — which is the benchmark for the roughly $80 billion XLK exchange-traded fund.
“Nvidia’s index weight will rise dramatically, mostly at the expense of Apple’s,” he noted. “Considering the outsized importance of mega-cap tech overall — and Nvidia in particular — upon broad market indices, it is not unreasonable for traders to be wary about outsized movements late in the day.”
As the contracts disappear, investors adjust their positions, adding a burst of volume capable of swinging individual holdings.
The S&P 500 edged lower to around 5,465.
Nvidia almost erased a plunge of about 5% before pushing lower again.
It erased over $220 billion in value in two days.
Apple Inc. also fell.
Treasury 10-year yields were little changed at 4.25%.
France’s risk premium over Germany closed at the highest since 2012.
The artificial-intelligence frenzy that briefly made Nvidia the world’s most-valuable company this week also drove record inflows into tech funds, said Bank of America Corp. strategists.
About $8.7 billion flowed into tech funds in the week through June 19, according to a note from the bank citing EPFR Global data.
“The ‘all roads lead to Nvidia’ trade is once again bolstered” as Europe falters amid the political turmoil in France, strategist Michael Hartnett said. Still, while investors still feel they need more exposure to AI-related plays, “all asset allocators are concerned about the equity concentration risk.”
Keith Lerner at Truist Advisory Services says the firm is downgrading the technology sector to “neutral” after the industry largely outperformed the S&P 500 since their“overweight” call in November.
“Although we still have a favorable long-term view of technology, on a shorter-term basis the sector appears extended, and we would not be chasing the sector,” Lerner noted. “That said, the sector appears far from ‘bubble’ territory, and we believe secular tailwinds will persist around artificial intelligence.”
Friday’s options event came at a critical juncture for markets positioning for the second half of 2024 and the Federal Reserve’s next steps.
Data showed US services activity picked up early this month to the fastest pace in more than two years.
Separately, sales of existing homes fell for a third straight month.
“Investors should brace for drama,” said Solita Marcelli at UBS Global Wealth Management. “The second half of 2024 is shaping up to be a time of transition and volatility.
The decisions that investors make now will be key to navigating this period effectively.”
John Stoltzfus at Oppenheimer Asset Management says he remains positive in the outlook for stocks as prospects for improved fundamentals this year show potential to be realized.
“That said, history shows us that stocks and other asset class prices don’t go up in a straight line but rather tend to climb the proverbial ‘wall of worry,’ requiring prudent diversification, patience, and a sense of one’s tolerance to risk and fluctuation for private investors and discipline tied to an institution’s mandate for professional investors,” he noted.

Corporate Highlights:
* Apple Inc. is withholding a raft of new technologies from hundreds of millions of consumers in the European Union, citing concerns posed by the bloc’s regulatory attempts to rein in Big Tech.
* AMC Entertainment Holdings Inc. is holding confidential talks with some of its lenders about lowering its debt load and extending near-term maturities, according to people with knowledge of the matter.
* Airbus SE is edging closer to an agreement with Spirit AeroSystems Holdings Inc. to take over parts of the aerospace supplier’s business, paving the way for an acquisition of the bulk of the company by arch-rival Boeing Co. as early as next week.
* American Airlines Group Inc. is suspending training for new pilots through the end of this year, the latest pullback by a major US carrier in the face of uneven travel demand and delayed aircraft.
* A top US Food and Drug Administration official overrode reviewers to give broad approval to Sarepta Therapeutics Inc.’s gene therapy for a rare muscle disease in children, despite a lack of data showing it actually slows overall progression of the disease.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World Index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0692
* The British pound was little changed at $1.2649
* The Japanese yen fell 0.4% to 159.58 per dollar
Cryptocurrencies
* Bitcoin fell 1.2% to $64,301.01
* Ether rose 0.4% to $3,538.53
Bonds
* The yield on 10-year Treasuries was little changed at 4.25%
* Germany’s 10-year yield declined two basis points to 2.41%
* Britain’s 10-year yield advanced three basis points to 4.08%
Commodities
* West Texas Intermediate crude fell 0.8% to $80.63 a barrel
* Spot gold fell 1.6% to $2,322.32 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Carly Wanna, Sagarika Jaisinghani, Cecile Gutscher, Divya Patil, Matthew Burgess and Winnie Hsu.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann
Success comes to those who can recognize and correctly value risk. –Sidney Weinberg, 1891-1969.

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

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

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

Dear Friends,

Tangents: Happy Friday Eve.  It’s the first official day of summer!

Today’s summer solstice is the earliest since 1796.

• What is it? The longest day and shortest night of the year in the Northern Hemisphere, when the sun takes its highest path in the sky. After today, we’ll slowly start to lose daylight.
• Why is it so early? Because of the complicated way our calendar works. Leap years — like 2024 — will cause the solstice to drift earlier until 2100, when the cycle will reset.

June 20, 1997: The tobacco industry agreed to a massive settlement in exchange for relief from mounting lawsuits and legal bills.  Go to article >>
June 20, 1840: American inventor Samuel Morse patents his telegraph, revolutionising communication.
June 20, 1948: Ed Sullivan Show premieres.
1893: Lizzie Borden found not guilty.

Lillian Hellman, writer, b. 1905.
Errol Flynn, actor, b. 1909.
Chet Atkins, guitarist, b. 1924
Ann Murray, singer-song writer, b.1946.
Nicole Kidman, actress, b. 1967

Earth’s rotating inner core is starting to slow down — and it could alter the length of our days
A new study confirms that Earth’s inner core has been rotating more slowly than usual since 2010. This mysterious “backtracking” could also end up slightly altering the planet’s overall rotation, lengthening our days. Read More.

Gulf Stream’s fate to be decided by climate ‘tug-of-war’
New research suggests that runoff from the Greenland Ice Sheet could prevent icebergs from disrupting key ocean currents. But some scientists have cautioned that other factors may be at play. Read More.

Long-lost Assyrian military camp devastated by ‘the angel of the Lord’ finally found, scientist claims
Has a scholar located two Assyrian military camps mentioned in the Hebrew bible? Read More.

‘1st of its kind’: NASA spots unusually light-colored boulder on Mars that may reveal clues of the planet’s past
NASA’s Perseverance rover spotted a bizarrely light-toned boulder on Mars, the likes of which have never been seen before. Read More.

CNN’s Dr. Sanjay Gupta shares lifestyle changes that he says showed cognitive improvement
Neurosurgeon and CNN chief medical correspondent Dr. Sanjay Gupta discusses a study that may show greater insight into preventing Alzheimer’s. Watch the video here.

The disturbing pattern of missing tourists in Greece
Some scientists think extreme heat could be the reason people keep disappearing in Greece. Here’s how environmental factors in the region could be costing lives.
PHOTOS OF THE DAY

Frankfurt, Germany
A man rides his bike on a small road on the outskirts of Frankfurt before sunrise
Photograph: Michael Probst/AP

Showjumper Pénélope Leprevost, who won team gold at Rio 2016, in the Galerie des Glaces in the Palace of Versailles. The Hall of Mirrors was designed by Jules Hardouin-Mansart in 1678 and completed in 1684.
Photograph: Stefano Rellandini/AFP/Getty Images

​​​​​​​Northumberland, UK
‘Low Hauxley, near Amble. I was hoping for a sunrise, but it was too cloudy. However, the sun soon came out, giving some great light on the rocks and dunes. Coquet Lighthouse is in the background.’
Photograph: David Eberlin
Market Closes for June 20^th, 2024

Market Index	Close	Change
Dow Jones	39134.76	+299.90
		+0.77%
S&P 500	5473.17	-13.86
		-0.25%
NASDAQ	17721.59	-140.64
		-0.79%
TSX	21581.35	+64.45
		+0.30%

International Markets

Market Index	Close	Change
NIKKEI	38633.02	+62.26
		+0.16%
HANG SENG	18335.32	-95.07
		-0.52%
SENSEX	77478.93	+141.34
		+0.18%
FTSE 100*	8272.46	+67.35
		+0.82%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.343	3.292
CND. 30 Year Bond	3.270	3.220
U.S.    10 Year Bond	4.2594	N.A.
U.S. 30 Year Bond	4.3963	N.A.

Currencies

BOC Close	Today	Previous
Canadian $	0.7307	0.7295
US $	1.3685	1.3707

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4651	0.6825
US $	1.0706	0.9341

Commodities

Gold	Close	Previous
London Gold Fix	2324.25	2324.25
Oil
WTI Crude Future	82.17	81.57

Market Commentary:
📈 On this day in 1991, IBM warned that its second-quarter revenues would fall at least 5%. That was IBM’s first decline in annual revenues since 1946, sending Wall Street analysts into a deep funk about the future of technology stocks.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.3% at 21,581.35 in Toronto.
The move was the biggest gain since June 12 and follows the previous session’s decrease of 0.4%.
Canadian Pacific Kansas City Ltd. contributed the most to the index gain, increasing 2.3%.
Silver Crest Metals Inc. had the largest increase, rising 6.1%.
Today, 130 of 222 shares rose, while 88 fell; 7 of 11 sectors were higher, led by materials stocks.
Insights
* This quarter, the index fell 2.6%
* This month, the index fell 3.1%, heading for the biggest decline since October 2023
* So far this week, the index fell 0.3%
* The index advanced 9.2% in the past 52 weeks. The MSCI AC Americas Index gained 23% in the same period
* The S&P/TSX Composite is 4.3% below its 52-week high on May 21, 2024 and 15.5% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 0.5% in the past 5 days and fell 3.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.4 on a trailing basis and 14.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.41t
* 30-day price volatility fell to 10.16% compared with 10.27% in the previous session and the average of 10.18% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 48.7377| 1.9| 44/6
Industrials | 24.3633| 0.8| 12/15
Energy | 15.0591| 0.4| 26/13
Communication Services | 5.2455| 0.8| 2/3
Consumer Staples | 4.3604| 0.5| 8/3
Real Estate | 2.6588| 0.6| 14/5
Health Care | 1.1273| 1.9| 2/0
Consumer Discretionary | -0.4598| -0.1| 5/8
Utilities | -6.6059| -0.8| 2/13
Information Technology | -12.4142| -0.7| 4/6
Financials | -17.6111| -0.3| 11/16
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Canadian Pacific Kansas | 15.8000| 2.3| 37.1| 2.8
Canadian Natural Resources | 9.7720| 1.4| 122.7| 10.3
Barrick Gold | 7.2560| 2.6| 33.5| -3.0
Bank of Montreal | -5.2850| -0.9| 14.2| -12.5
Shopify | -7.5310| -1.0| -35.2| -15.3
Bank of Nova Scotia| -8.9300| -1.7| 41.7| -3.9
US
By Rita Nazareth
(Bloomberg) — Stocks retreated after a rally to all-time highs spurred calls for a near-term pullback amid signs of buyer fatigue.
The S&P 500 briefly topped 5,500 before losing traction — while still remaining above a technical threshold that typically hints at an overstretched market.
The high-flying tech group that has powered the bull run came under pressure, with the Nasdaq 100 down after a seven-day advance.
Nvidia Corp. and Apple Inc. led losses in mega caps.
The Dow Jones Industrial Average outperformed.
“Bullish momentum remains intact for the S&P 500 and Nasdaq, but near-term overbought conditions coupled with deteriorating breadth make equities vulnerable to a pullback or correction,” said Craig Johnson at Piper Sandler. After coming close to erasing this year’s losses, Treasuries fell despite data that mostly pointed to economic softening.
A $21 billion TIPS auction was strong.
Federal Reserve Bank of Minneapolis President Neel Kashkari said the central bank will return inflation to 2%, but estimated it will likely take a year or two to do so.
Wall Street also geared up for a quarterly event known as “triple witching” — in which derivatives contracts tied to equities, index options and futures mature — compelling traders en masse to roll over their existing positions or to start new ones.
About $5.5 trillion are set to expire Friday, according to an estimate from options platform SpotGamma.
Traders are betting the Bank of England will cut rates in August after dovish signals from policymakers.
The franc led losses in developed-world currencies as the Swiss National Bank lowered borrowing costs.
The yen dropped for a sixth straight day, ramping up the risk that Japan will step in to prop up the currency.
While the S&P 500 has set 31 new records this year, few of its members outside of technology have participated in the advance.
In the last three months, the 10 largest stocks in the index by market capitalization — mostly tech giants — have largely outperformed the rest, according to data compiled by Bloomberg Intelligence equity strategist Gillian Wolff.
“Sellers are entering the market, and bulls are dancing on the edge of a knife,” said Andrew Thrasher at Financial Enhancement Group. “Everything is now dependent on pretty much just Nvidia and Apple. It won’t take a whole lot to take this market down.”
To Nicholas Bohnsack at Strategas, equity valuations have shifted higher into the upper strata of their historical range where the forward return profile is not particularly robust for new money.
“Still, there appears little to put the domestic bull market into abeyance,” he said. “The economy, while showing some signs of softening momentum, is generally strong globally.
Market performance remains strong and corporate profits expectations are broadening. We remain bullish ‘til the bill comes due.”
The S&P 500 may rally close to an additional 10% this year, if past market manias are any guide, according to Stifel, Nicolaus & Co. But like prior “bubble” episodes, this one eventually has to pop too, the firm’s chief equity strategist says.
Stifel’s Barry Bannister says the US stock benchmark has a shot at reaching the 6,000 mark before the end of 2024 as investors keep piling in, up from just below 5,500 Thursday.
But by mid-2026, he expects the gauge to sink back to where it began this year — around the 4,800 level — erasing a fifth of its value.
Ned Davis Research strategist Ed Clissold raised his year- end outlook on the S&P 500 to 5,725, saying that a modest pickup in earnings growth and the likelihood that policymakers’ next move will be a cut set up equities for more gains in the second half of 2024.
“The outlook is not without potential pitfalls,” Clissold wrote. “High valuations and narrowing leadership leave the market vulnerable for bigger drawdowns should the bullish fundamental/macro backdrop falter.”
On the economic front, data came mostly on the soft side, with new home construction slumping to the slowest pace in four years and the Philadelphia Fed Index trailing estimates.
US initial jobless claims were little changed.
A string of weaker-than-estimated data points has sent the US version of Citigroup’s Economic Surprise Index to the lowest since August 2022.
The gauge measures the difference between actual releases and analyst expectations.
To Don Rissmiller at Strategas, until employment weakens significantly there remains a fundamental support for the economy, even with some pressure on rate-sensitive sectors such as housing.
“The US economy still looks robust enough currently to take an extended rate pause (mixed news is not weak news),” he noted.“We continue to monitor jobless claims closely for any signs that cracks are widening, however.”

Corporate Highlights:
* Dell Technologies Inc.’s Chief Executive Officer Michael Dell said the company is building a “Dell AI factory” for Elon Musk’s startup xAI alongside Nvidia Corp.
* Hertz Global Holdings Inc. increased the size of a junk-bond sale by a third to $1 billion, as the car-rental company works to bolster its balance sheet after a misstep on its electric vehicle fleet.
* A United Airlines Holdings Inc. plane returned to a Connecticut airport after losing part of a liner from inside the engine’s cover, another incident for a carrier already under scrutiny over a series of flight mishaps this year.
* Kroger Co.’s executives flagged a dip in profit due to pressure in the supermarket operator’s pharmacies and an increase in promotions.
* MGM Resorts International plans to offer online betting with live dealers based at two of its Las Vegas resorts in what the company said was a first for a casino operator on the city’s famous Strip.
* Honeywell International Inc. agreed to buy aerospace and defense company CAES Systems from private equity firm Advent International for $1.9 billion.
* Gilead Sciences Inc.’s experimental twice-yearly shot prevented 100% of HIV cases in women and adolescent girls in Africa, the first successful big trial of what’s hoped to become a powerful new drug regimen for fending off the virus.
* Vertex Pharmaceuticals Inc. has reached a pricing deal for its cystic fibrosis drugs with the National Health Service in England, ending a yearslong campaign by patients to secure access to the medicines.

Key events this week:
* Eurozone S&P Global Manufacturing PMI, S&P Global Services PMI, Friday
* US existing home sales, Conf. Board leading index, Friday
* Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.8%
* The Dow Jones Industrial Average rose 0.8%
* The MSCI World Index fell 0.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.4% to $1.0705
* The British pound fell 0.4% to $1.2663
* The Japanese yen fell 0.5% to 158.89 per dollar
Cryptocurrencies
* Bitcoin rose 0.3% to $65,027.49
* Ether fell 0.6% to $3,531.58
Bonds
* The yield on 10-year Treasuries advanced three basis points to 4.25%
* Germany’s 10-year yield advanced three basis points to 2.43%
* Britain’s 10-year yield declined one basis point to 4.06%
Commodities
* West Texas Intermediate crude rose 0.7% to $82.17 a barrel
* Spot gold rose 1.3% to $2,358.98 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Alexandra Semenova, Jessica Menton, Jan- Patrick Barnert, Carly Wanna, Sujata Rao, Chiranjivi Chakraborty, Winnie Hsu and Matthew Burgess.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
I can’t change the direction of the wind, but I can adjust my sails to always reach my destination. –Jimmy Dean, 1928-2010.

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: Juneteenth.
June 19, 1862: Slavery was outlawed in U.S. territories.
June 19, 1964: The U.S. Senate passed the Civil Rights Act of 1964, a landmark legislation that prohibits discrimination based on race, colour, religion, sex, or national origin.

Blaise Pascal, philosopher, b. 1623.
Elbert Hubbard, writer, b.1856.Aung San Sung, peace activist, b.1945.
Salmon Rushdie, writer, b.1947.

Newly deciphered papyrus describes ‘miracle’ performed by 5-year-old Jesus
A manuscript written in the fourth or fifth century describes how Jesus brought clay birds to life as a child. Read More.

Ming dynasty shipwrecks hide a treasure trove of artifacts in the South China Sea, excavation reveals
Researchers have retrieved hundreds of artifacts, including porcelain items, copper coins and ornate pieces of pottery. Read More.

James Webb telescope reveals long-studied baby star is actually ‘twins’ — and they’re throwing identical tantrums
New observations from the James Webb Space Telescope revealed that a distant protostar is actually a pair of baby binary stars that are spitting out parallel energy jets as they gobble up giant disks of gas and dust. Read More.

Aliens, artists or pranksters? Another ‘mysterious’ monolith appears
A shiny silver pillar was spotted by the Las Vegas Metropolitan Police Department prompting theories about its origins.

PHOTOS OF THE DAY

Yonne, France
‘We were at the municipal campsite in the village of Toucy. In the early evening we took a stroll around the nearby lake. It was surrounded by lovely trees. Then a small family group came into view on the opposite bank, their chatter and laughter carried in the still, calm air.’
Photograph: Noel Boardman

County Down, UK
‘The Mourne Mountains sweeping down to the sea.’
Photograph: Bill Coulter

​​​​​​​New Mexico, US
‘White Sands national park. Not snow, but sand – and not even real sand (silica) but gypsum (calcium sulphate) crystals.’
Photograph: Gill Henry
Market Closes for June 19^th, 2024

Market Index	Close	Change
Dow Jones	Market Closed	N.A.
S&P 500	Market Closed	N.A.
NASDAQ	Market Closed	N.A.
TSX	21516.90	-94.40
		-0.44%

International Markets

Market Index	Close	Change
NIKKEI	38570.76	+88.65
		+0.23%
HANG SENG	18430.39	+514.84
		+2.87%
SENSEX	77337.59	+36.45
		+0.05%
FTSE 100*	8205.11	+13.82
		+0.17%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.292	3.262
CND. 30 Year Bond	3.220	3.190
U.S.    10 Year Bond	N.A.	4.2227
U.S. 30 Year Bond	N.A.	4.3551

Currencies

BOC Close	Today	Previous
Canadian $	0.7295	0.7290
US $	1.3707	1.3717

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4729	0.6789
US $	1.0745	0.9306

Commodities

Gold	Close	Previous
London Gold Fix	2324.25	2330.45
Oil
WTI Crude Future	81.57	78.45

Market Commentary:
There’s no way that you can live an adequate life without making many mistakes. –Charlie Munger, 1924-2023.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.4% at 21,516.90 in Toronto.
The index dropped to the lowest closing level since Feb. 29 after the previous session’s increase of 0.1%.
Brookfield Corp. contributed the most to the index decline, decreasing 2.6%.
Canfor Corp. had the largest drop, falling 2.9%.
Today, 146 of 222 shares fell, while 67 rose; all sectors were lower, led by financials stocks.
Insights
* This quarter, the index fell 2.9%
* The index advanced 7.9% in the past 52 weeks. The MSCI AC Americas Index gained 23% in the same period
* The S&P/TSX Composite is 4.6% below its 52-week high on May 21, 2024 and 15.1% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 2% in the past 5 days and fell 4.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.4 on a trailing basis and 14.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.43t
* 30-day price volatility rose to 10.27% compared with 10.22% in the previous session and the average of 10.18% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -35.9813| -0.5| 8/19
Industrials | -28.8049| -0.9| 4/23
Energy | -10.9821| -0.3| 13/22
Consumer Discretionary | -4.6637| -0.6| 2/11
Information Technology | -3.0285| -0.2| 5/5
Real Estate | -2.8943| -0.7| 0/19
Consumer Staples | -2.6248| -0.3| 4/7
Communication Services | -1.8397| -0.3| 1/4
Materials | -1.5688| -0.1| 20/27
Utilities | -1.2149| -0.1| 10/5
Health Care | -0.7994| -1.3| 0/4
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Brookfield Corp | -14.5300| -2.6| -49.9| 4.0
Canadian National | -10.0400| -1.5| -21.3| -3.9
Canadian Pacific Kansas | -7.6400| -1.1| -41.3| 0.4
Lundin Mining | 1.2900| 1.9| -84.6| 36.1
Shopify | 1.4390| 0.2| -34.9| -14.4
Bank of Montreal | 1.5240| 0.3| -48.1| -11.7US
US
US  markets closed for Juneteenth  holiday.

Have a lovely evening.

Be magnificent!

As ever,

Carolann
He will win who knows when to fight and when not to fight. –Sun Tzu, 544 BC-496 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:
June 18, 1815: Battle of Waterloo; Napoleon Bonaparte and France defeated by British forces under Duke of Wellington and Prussian troops.
June 18, 1948: Columbia Records unveiled its new long-playing, 33 1/3 rpm phonograph record. Go to article >>

1983: First U. S. woman in Space, Sally Ride.

Paul McCartney, musician, b. 1942.
Roger Ebert, critic, b.1942.
Isabella Rossellini, b. 1952.

Y chromosome is evolving faster than the X, primate study reveals
The male Y chromosome in humans is evolving faster than the X. Scientists have now discovered the same trend in six species of primate. Read More.

1,700-year-old ’emergency hoard’ of coins dates to last revolt of Jews against Roman rule
Many of the silver and bronze coins were minted during the Gallus Revolt during the Roman era. Read More

NASA engineers finally fix Voyager 1 spacecraft — from 15 billion miles away
The Voyager I spacecraft went haywire last year, but NASA engineers say they have finally fixed its data transmission systems and are receiving usable signals from all four science instruments. Read More.

Strawberry Moon 2024: See summer’s first full moon rise a day after solstice
June’s full “Strawberry Moon” rises one day after the summer solstice in the Northern Hemisphere. This will be the lowest full moon of the year. Read More.

X-ray vision chip gives phones ‘Superman’ power to view objects through walls
Researchers have developed an imaging chip for mobile devices that uses high-frequency radio waves to “see” through objects. Read More.

Boston Celtics win the 2024 NBA championship
The Celtics beat the Dallas Mavericks 106-88 in Game 5 on Monday night to win the series 4-1 and secure their league-record 18th title.

New Zealand’s prime minister hitches ride on commercial plane
A surprise diversion for a first-class passenger! An Air New Zealand plane was sent to pick up Prime Minister Christopher Luxon when his government aircraft broke down.

PHOTOS OF THE DAY

Roswell, US
Smoke plumes from the South Fork fire, which caused mandatory evacuations in Ruidoso, New Mexico, are visible from the evacuation route
Photograph: Kaylee Greenlee Beal/Reuters

Cambridge, England
A firework display over the River Cam during the May ball at Cambridge University’s Trinity College
Photograph: Joe Giddens/PA

Shawnee, US
A man and a boy fish on Shawnee Mission lake in Kansas
Photograph: Charlie Riedel/AP
Market Closes for June 18^th, 2024

Market Index	Close	Change
Dow Jones	38834.86	+56.76
		+0.15%
S&P 500	5487.03	+13.80
		+0.25%
NASDAQ	17862.23	+5.21
		+0.03%
TSX	21611.30	+23.42
		+0.11%

International Markets

Market Index	Close	Change
NIKKEI	38482.11	+379.67
		+1.00%
HANG SENG	17915.55	-20.57
		-0.11%
SENSEX	77301.14	+308.37
		+0.40%
FTSE 100*	8191.29	+49.14
		+0.60%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.262	3.314
CND. 30 Year Bond	3.190	3.238
U.S.    10 Year Bond	4.2227	4.2809
U.S. 30 Year Bond	4.3551	4.4064

Currencies

BOC Close	Today	Previous
Canadian $	0.7290	0.7288
US $	1.3717	1.3720

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4733	0.6787
US $	1.0741	0.9310

Commodities

Gold	Close	Previous
London Gold Fix	2319.90	2330.45
Oil
WTI Crude Future	80.33	78.45

Market Commentary:
📈 On this day in 1998, internet stocks got a boost as Walt Disney agreed to buy 43% of the internet-search engine Infoseek for roughly $550 million in cash, stock and warrants. Infoseek stock shot up to $42. Less than three years later, Disney exchanged the old Infoseek assets for its own shares at an approximate value of only $5 per share.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.1% at 21,611.30 in Toronto.
The move follows the previous session’s decrease of 0.2%.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.2%.
Ballard Power Systems Inc. had the largest increase, rising 6.8%.
Today, 124 of 222 shares rose, while 91 fell; 4 of 11 sectors were higher, led by energy stocks.
Insights
* This quarter, the index fell 2.5%
* The index advanced 8.2% in the past 52 weeks. The MSCI AC Americas Index gained 23% in the same period
* The S&P/TSX Composite is 4.2% below its 52-week high on May 21, 2024 and 15.6% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 1.3% in the past 5 days and fell 3.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.4 on a trailing basis and 14.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.42t
* 30-day price volatility little changed to 10.22% compared with 10.23% in the previous session and the average of 10.18% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 38.1612| 1.0| 30/10
Financials | 21.8106| 0.3| 18/9
Materials | 19.1825| 0.7| 36/11
Health Care | 0.0980| 0.2| 2/1
Consumer Discretionary | -0.5749| -0.1| 6/7
Utilities | -1.8540| -0.2| 5/9
Real Estate | -2.3738| -0.5| 6/13
Communication Services | -3.1441| -0.5| 0/5
Consumer Staples | -4.3223| -0.5| 4/6
Industrials | -15.4116| -0.5| 14/13
Information Technology | -28.1603| -1.6| 3/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian Natural Resources | 15.3300| 2.2| 86.4| 8.9
Suncor Energy | 7.3220| 1.6| -54.5| 19.6
TD Bank | 6.5890| 0.7| -15.1| -13.1
Canadian Pacific Kansas | -5.0280| -0.7| 33.3| 1.6
Canadian National | -13.0300| -1.9| 2.4| -2.4
Shopify | -26.9900| -3.5| 43.1| -14.6
US
By Rita Nazareth
(Bloomberg) — A rally in chipmakers drove stocks to another record, with traders betting the potential for Federal Reserve rate cuts will keep fueling the industry that has powered the equity market this year.
The S&P 500 came closer to the historic 5,500 mark.
Nvidia Corp. became the world’s most-valuable company — topping Microsoft Corp. — to extend this year’s record-breaking surge.
A bullish analyst call projected the firm at the heart of the artificial-intelligence boom will hit nearly $5 trillion in value in the coming year — from about $3.3 trillion.
Bonds climbed as traders piled into a $13 billion sale of 20-year Treasuries.
Wall Street waded through mixed economic data that showed US industrial production increased, helped by a broad-based pickup in factory output.
Separately, retail sales barely rose and prior months were revised lower.
A chorus of Fed officials emphasized the need for more evidence of cooling inflation before lowering rates.
“Investors should lean toward the glass-half-full view, but recognize macroeconomic conditions, as well as the nuances across corporate profits, consumers, and incoming economic data may evolve in ways not fully discounted in asset prices at the moment,” said Anthony Saglimbene at Ameriprise.
On the eve of a US holiday, the S&P 500 hit its 31st all-time high of 2024.
Nvidia climbed 3.5% after Rosenblatt Securities analyst Hans Mosesmann hiked his price target on the
chipmaker to a Wall Street high of $200 from $140. Treasury 10-year yields fell seven basis points to 4.21%.
Bank of America Corp.’s institutional clients piled into US equities for the second week in a row, led by technology and social media shares, strategists including Jill Carey Hall wrote in a note to clients.
Separately, a BofA survey showed that global investors are likely to keep pumping money into record-hitting stock markets.
Answering a question about the asset class that would benefit most from a reallocation of money-market funds, 32% of respondents opted for US stocks. Another 19% said the cash would go into global equities, while a quarter of the respondents indicated they would buy government bonds.
There’s not much doubt in the market right now to curb the enthusiasm about the US stock rally driven by a small group of tech stocks.
But some investors are increasingly looking for the ways to hedge the concentration risk.
And with each record, that concentration has tightened even more.
The so-called Magnificent Seven companies have contributed more than 60% to the S&P 500’s return this year.

Corporate Highlights:
* Boeing Co. Chief Executive Officer Dave Calhoun faced searing criticism in a Senate hearing that accused him of failing to overcome the company’s manufacturing shortcomings by putting profit ahead of safety.
* Philip Morris International Inc. stopped online sales of its popular nicotine pouch brand Zyn in the US after receiving a subpoena in the District of Columbia related to flavored products that are banned there.
* Dollar Tree Inc. continued to sell children’s applesauce tainted with “extremely high” levels of lead long after the company recalled the product due to contamination concerns, US regulators said.

Key events this week:
* UK CPI, Wednesday
* US Juneteenth holiday, Wednesday
* China loan prime rates, Thursday
* Eurozone consumer confidence, Thursday
* UK BOE rate decision, Thursday
* US housing starts, initial jobless claims, Thursday
* Eurozone S&P Global Manufacturing PMI, S&P Global Services PMI, Friday
* US existing home sales, Conf. Board leading index, Friday
* Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average rose 0.1%
* The MSCI World Index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro was little changed at $1.0738
* The British pound was little changed at $1.2708
* The Japanese yen was little changed at 157.85 per dollar
Cryptocurrencies
* Bitcoin fell 3.2% to $64,239.48
* Ether fell 2.6% to $3,420.52
Bonds
* The yield on 10-year Treasuries declined seven basis points to 4.21%
* Germany’s 10-year yield declined two basis points to 2.40%
* Britain’s 10-year yield declined seven basis points to 4.05%
Commodities
* West Texas Intermediate crude rose 1.4% to $81.49 a barrel
* Spot gold rose 0.5% to $2,329.70 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Subrat Patnaik, Carmen Reinicke, Natalia Kniazhevich, Sagarika Jaisinghani, Jason Scott, Aya Wagatsuma, Robert Brand and Sujata Rao.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
Nature  gives you the face you have a t twenty.  Life shapes the face you have at thirty.
But at fifty you get the face you deserve. –Coco Chanel, 1883-1971.

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

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

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

Dear Friends,

Tangents: Happy Monday.

June 17, 1885 The Statue of Liberty arrived in New York City aboard the French ship Isere. Go to article >>
June 17, 1944: Iceland becomes a republic.  The Nordic island country had previously been included in the Norwegian and Danish monarchies.
June 17, 1972: Watergate arrests.

John Wesley, founder of Methodism, b. 1703.
Igor Stravinsky, composer, b. 1882H
M.C. Escher, artist, b.1898.
Venus Williams, tennis player, b. 1980.

A jolt for the summer box office
Movie theaters may be facing a bleak future, but an animated film could give the industry a much-needed boost. This movie just notched the most lucrative box office opening since “Barbie,” which grossed $162 million.

Tony Awards 2024: See the full list of winners
The Tony Awards, which honor the best of Broadway, were presented on Sunday in New York City. See the full list of winners.

Highlights from the US Open
Bryson DeChambeau won his second US Open title on Sunday, edging Rory McIlroy in a nerve-shredding finale at Pinehurst No. 2 in North Carolina.

‘House of the Dragon’ Season 2 premiere recap
At last, the wait is over. The second season of “House of the Dragon” returned Sunday to HBO (which is owned by CNN’s parent company, Warner Bros. Discovery). Let’s talk about it.

Planet Nine: Is the search for this elusive world nearly over?
Deep in the outer reaches of the solar system — so far away from the known planets that the sun would barely be distinguishable from a nearby star — a massive, icy world may be lurking in the shadows, waiting to be discovered by humanity.
And the day that we finally find this elusive planet may be coming soon, thanks to a state-of-the-art telescope that will begin scanning the sky next year. With the opening of the groundbreaking Vera C. Rubin Observatory in 2025, we may either finally find Planet Nine within the next few years — or rule out the idea for good. Read More.

Gilgamesh flood tablet: A 2,600-year-old text that’s eerily similar to the story of Noah’s Ark
The baked clay tablet tells the tale of an epic flood. Read More.

Scientists inserted a window in a man’s skull to read his brain with ultrasound
New research shows it’s possible to use ultrasound waves to monitor activity in the human brain. Read More.

PHOTOS OF THE DAY

Devon, UK
A steam train passes above Broadsands beach in Paignton, in south-west England, a longstanding base of the Liberal Democrats. Support for Ed Davey’s party has edged up and a recent poll showed it may snatch Yeovil in Somerset from the Tories
Photograph: Finnbarr Webster/Getty Images

İzmir, Turkey
Aerial view of Ilıca beach in the resort of Çeşme, in western Anatolia, where Turkish and foreign visitors took advantage of the Eid al-Adha holiday
Photograph: Berkan Cetin/Anadolu/Getty Images

​​​​​​​London, UK
An aerial view of the Palace of Westminster and a placid River Thames as the nation prepares to elect a new parliament
Photograph: Yann Tessier/Reuters
Market Closes for June 17^th, 2024

Market Index	Close	Change
Dow Jones	38778.10	+188.94
		+0.49%
S&P 500	5473.23	+41.63
		+0.77%
NASDAQ	17857.02	+168.14
		+0.95%
TSX	21587.88	-51.22
		-0.24%

International Markets

Market Index	Close	Change
NIKKEI	38102.44	-712.12
		-1.83%
HANG SENG	17936.12	-5.66
		-0.03%
SENSEX	76992.77	+181.87
		+0.24%
FTSE 100*	8142.15	-4.71
		-0.06%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.314	3.285
CND. 30 Year Bond	3.238	3.216
U.S.    10 Year Bond	4.2809	4.2132
U.S. 30 Year Bond	4.4064	4.3452

Currencies

BOC Close	Today	Previous
Canadian $	0.7288	0.7282
US $	1.3720	1.3734

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4728	0.6790
US $	1.0734	0.9316

Commodities

Gold	Close	Previous
London Gold Fix	2330.45	2310.80
Oil
WTI Crude Future	78.45	78.62

Market Commentary:
📈 On this day in 1930, the U.S. imposed the Smoot-Hawley Tariff Act, raising average tariffs on foreign goods by about 20%. The U.S.’s trade partners retaliated with tariffs of their own, dealing a sharp blow to trade and worsening the Great Depression.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 0.2%, or 51.22 to 21,587.88 in Toronto.
The index dropped to the lowest closing level since March 5.
Shopify Inc. contributed the most to the index decline, decreasing 1.7%.
Novagold Resources Inc. had the largest drop, falling 7.7%.
Today, 127 of 222 shares fell, while 94 rose; 7 of 11 sectors were lower, led by energy stocks.
Insights
* This quarter, the index fell 2.6%
* The index advanced 8.1% in the past 52 weeks. The MSCI AC Americas Index gained 23% in the same period
* The S&P/TSX Composite is 4.3% below its 52-week high on May 21, 2024 and 15.5% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 2.2% in the past 5 days and fell 3.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.3 on a trailing basis and 14.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.43t
* 30-day price volatility fell to 10.23% compared with 11.18% in the previous session and the average of 10.13% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -25.2424| -0.7| 23/16
Information Technology | -13.7423| -0.8| 5/5
Materials | -13.2769| -0.5| 11/39
Financials | -10.3393| -0.2| 11/16
Utilities | -7.2580| -0.9| 2/13
Communication Services | -5.6462| -0.8| 0/5
Real Estate | -1.8457| -0.4| 4/16
Health Care | 0.1743| 0.3| 2/2
Consumer Discretionary | 3.1588| 0.4| 11/2
Consumer Staples | 5.4309| 0.6| 7/4
Industrials | 17.3835| 0.6| 18/9
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -13.6200| -1.7| -19.9| -11.5
TD Bank | -8.0810| -0.9| 74.1| -13.7
Canadian National | -6.3950| -0.9| 56.2| -0.5
Manulife Financial | 6.0730| 1.4| -29.0| 19.5
Waste Connections | 10.0400| 2.4| 45.8| 19.8
Canadian Pacific Kansas | 10.6400| 1.5| 46.4| 2.3
US
By Rita Nazareth
(Bloomberg) — A rally in the world’s largest technology companies drove stocks to all-time highs, with some prominent Wall Street strategists rushing to boost their targets even as many hedge funds grow increasingly cautious.
The S&P 500 hit its 30th record this year, defying concerns about narrow breadth that could make the market more vulnerable to surprises.
As traders geared up for retail-sales data and a slew of Federal Reserve speakers, Treasuries fell amid a flurry of high-grade corporate bond sales that exceeded $21 billion, led by Home Depot Inc.
That’s ahead of Wednesday’s Juneteenth holiday.
Optimism over a resilient economy, improving corporate earnings and the potential start of rate cuts have pushed equities up about 15% this year, with ebbing inflation and the artificial-intelligence fervor also propelling equities higher.
“We believe the S&P 500 can reach 6,000 by year-end as the combination of better earnings and one or two rate cuts is like a turbo booster for stock prices,” said James Demmert at Main Street Research.
The S&P 500 topped 5,470, with Tesla Inc. and Apple Inc. leading gains in mega-caps.
The Nasdaq 100 rose 1.2% and approached the 20,000 mark.
Micron Technology Inc. climbed to a record as some firms raised their targets for the chipmaker.
Broadcom Inc. jumped over 5%. Activist investor Starboard Value said it’s built a stake in Autodesk Inc. valued at more than $500 million.
French stocks rebounded after last week’s tumble.
Yet the Stoxx Europe 600 Index was little changed as Citigroup Inc. downgraded the region’s equities, citing “heightened political risks” among other reasons.
Citigroup strategists raised their 2024 forecast for the S&P 500 to 5,600, becoming the third Wall Street firm since Friday to upgrade its outlook.
Ongoing positive earnings revisions and broadening of profit growth to non-tech companies prompted the target upgrade, Citi strategists led by Scott Chronert wrote.
In recent days, Goldman Sachs Group Inc. strategists led by David Kostin also boosted their target to 5,600, reflecting Wall Street’s optimistic outlook for earnings growth and the US economy.
Julian Emanuel at Evercore raised his year-end forecast on the S&P 500 to 6,000, the highest among major equity strategists tracked by Bloomberg.
Meantime, hedge funds decreased their long-short gross leverage, which measures their overall exposure to the market, by the most since March 2022, according to a note from Goldman Sachs’s prime brokerage desk.
The move points to a more cautious stance from the so-called smart money, the team wrote.
While there’s been no shortage of headlines about the latest record highs on the S&P 500, the highs have been less significant as a sign of market strength than as an influence on investor sentiment, according to Tim Hayes at Ned Davis Research.
“As record highs were reached by major benchmarks, breadth has weakened,” he said. “Benchmark records are not confirmed by most markets, sectors and stocks.”
In the run-up to the latest reading on retail sales, traders also kept an eye on Fed-speak.
Fed Bank of Philadelphia President Patrick Harker said he sees one rate cut as appropriate for this year based on his current forecast, underscoring the message that high rates are likely to persist.
Investors are being warned that rates will stay higher for longer than they’d expected, with the median projection from Fed officials calling for one interest rate cut this year.
And yet cash is pouring into stocks that benefit from lower borrowing costs.
The question now for investors is what will the market do when the Fed eventually does decide to cut?
Historically, rate cuts have marked a key inflection point that has ushered in strong equity returns — but only for cycles that aren’t triggered by a recession, like this one.
“Improving inflation trends would lead to a more constructive policy outlook, which should be a tailwind for equities and fixed income,” said Jason Pride and Michael Reynolds at Glenmede. “Assuming all continues to go well with
inflation along a moderating path through the summer, a September rate cut is likely on the table.”
Some stock-market optimists have speculated that a swath of  the roughly $6 trillion sitting in money-market cash is poised to be reallocated into equities and will give the rally another boost.
But a growing number of soothsayers at firms ranging from Morgan Stanley to Deutsche Bank AG are poking holes in that theory.
With generous yields on cash amid elevated interest rates, it’s no surprise that inflows to money market funds just hit another all-time high.
Yet, there’s little evidence to suggest that cash is going to move into riskier assets anytime soon.
“Choppiness and a flight to quality are likely to dominate the markets until the Fed clarifies the scope and timing of rate cuts,” said Robert Teeter at Silvercrest Asset Management. “This guidance may come as early as the Jackson Hole event in August.”
Many stocks are now becoming more sensitive to softer growth conditions, according to Morgan Stanley strategists led by Michael Wilson.
They say some value/cyclical stocks have started to focus more on earnings expectations and less on the impact of interest rates
“This development is in line with our consistent view that higher rates are a clear headwind to small caps, but lower rates don’t offer a comparable benefit,” they wrote.
The correlation between stock prices and bond yields continues to invert and is the most negative since 1997, suggesting a major shift in the inflation regime is likely underway and that stock prices and bond yields may together
remain subject to extreme sensitivity to inflation trends, according to according to Bloomberg Intelligence strategists led by Gina Martin Adams.
“The correlation between the two asset classes was positive for the better part of 20 years, suggesting disinflation was the dominant regime,” they said. “The positive correlation historically implied that equities trended in the direction of yields as inflation mostly coincided with growth.”
The shift in the correlation to negative might be signaling a significant longer-term change in inflation conditions has begun, the BI strategists noted.
Stocks held a negative correlation to yields throughout most of the 1980s and 1990s, when inflation hurt equities.

Corporate Highlights:
* Tesla Inc. has been granted approval to test its advanced driver-assistance system on some Shanghai streets, according to a person familiar with the matter — the next step in rolling out the feature to Chinese drivers.
* The US Federal Trade Commission sued Adobe Inc., alleging the software company violated consumer protection laws by making it too difficult for consumers to cancel their subscriptions.
* As crisis engulfs Boeing Co. following the near-catastrophic accident on an airborne 737 Max 9 aircraft, Chief Executive Officer Dave Calhoun has kept a low profile in recent months. A Senate hearing on Tuesday will put him on the spot to defend his record and salvage his legacy as he prepares to step down later this year.
* Walt Disney Co.’s Deadpool & Wolverine will hit Chinese theaters next month, a win for the studio after Beijing barred previous blockbuster releases at a time of frosty relations with the US.
* Cybercriminals are demanding payments of between $300,000 and $5 million apiece from as many as 10 companies breached in a campaign that targeted Snowflake Inc. customers, according to a security firm helping with the investigation.
* GameStop Corp. Chief Executive Officer Ryan Cohen told investors he’s focused on achieving profitability at the ailing video game retailer and plans to avoid the “hype” that has buffeted the shares to extremes as part of the meme-stock frenzy.

Key events this week:
* Australia rate decision, Tuesday
* Eurozone CPI, Tuesday
* US retail sales, business inventories, industrial production, Tuesday
* Fed’s Thomas Barkin, Lorie Logan, Adriana Kugler, Alberto Musalem, Austan Goolsbee speak, Tuesday
* UK CPI, Wednesday
* US Juneteenth holiday, Wednesday
* China loan prime rates, Thursday
* Eurozone consumer confidence, Thursday
* UK BOE rate decision, Thursday
* US housing starts, initial jobless claims, Thursday
* Eurozone S&P Global Manufacturing PMI, S&P Global Services PMI, Friday
* US existing home sales, Conf. Board leading index, Friday
* Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.8% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.2%
* The Dow Jones Industrial Average rose 0.5%
* The MSCI World Index rose 0.5%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.3% to $1.0733
* The British pound rose 0.1% to $1.2704
* The Japanese yen fell 0.2% to 157.73 per dollar
Cryptocurrencies
* Bitcoin rose 0.3% to $66,647.91
* Ether fell 1.3% to $3,551.29
Bonds
* The yield on 10-year Treasuries advanced five basis points to 4.27%
* Germany’s 10-year yield advanced five basis points to 2.41%
* Britain’s 10-year yield advanced six basis points to 4.11%
Commodities
* West Texas Intermediate crude rose 2.6% to $80.47 a barrel
* Spot gold fell 0.5% to $2,320.67 an ounce
This story was produced with the assistance of Bloomberg Automation.–With assistance from Christopher DeReza, Michael Gambale,
Jessica Menton, Alexandra Semenova, Natalia Kniazhevich, Matthew Burgess, Winnie Hsu, Sujata Rao and Julien Ponthus.
Have a lovely evening.

Be magnificent!

As ever,

Carolann
There’s another kind of river, one that runs through every one of us, no matter where we come from, all over the world.
It’s the river of the heart, and the heart’s desire.  It’s the pure, essential truth of what each one of us is, and can achieve. –Gregory David Roberts, Shantaram.

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