May 4, 2022 Newsletter

Dear Friends,

Tangents:
1959: the first Grammy Awards were presented, and the winners included Frank Sinatra, Ella Fitzgerald, and the Kingston Trio.

On May 4, 1970, Ohio National Guardsmen opened fire on anti-war protesters at Kent State University, killing four students and wounding nine others.  Go to article »

Stay at the Moulin Rouge.  The famous Parisian nightclub is partnering with Airbnb to give a handful of guests a “once in a lifetime” opportunity. 

Lets talk about cooking burnout.  We all have a go-to easy recipe when we don’t feel like cooking… If some of your dishes are overplayed, check out these “good enough” strategies. 

May the 4th be with you: 7 wild ‘Star Wars’ technologies scientist are building right now.   A long time ago, in a galaxy far, far away, technology was way cooler than it is in our reality: Commercial spaceships bending space-time to cross galaxies in seconds; autonomous androids capable of translating any language on the fly, or leaving a battlefield in ruin; deadly swords of plasma that fit comfortably under your bathrobe.  These classic “Star Wars” technologies have captured imaginations for decades — and some of them are finally coming to fruition.  Here are seven futuristic Star Wars technologies that could soon become a reality.  Full Story: Live Science (5/3) 

Archaeologists in Alabama have discovered the longest known painting created by early Indigenous Americans, a new study finds. Indigenous Americans crafted this 1,000-year-old record-breaking image — of a 10-foot-long (3 meters) rattlesnake — as well as other paintings, out of mud on the walls and ceiling of a cave, likely to depict spirits of the underworld, the researchers said.  Archaeologists in Alabama have discovered the longest known painting created by early Indigenous Americans, a new study finds. Indigenous Americans crafted this 1,000-year-old record-breaking image — of a 10-foot-long (3 meters) rattlesnake — as well as other paintings, out of mud on the walls and ceiling of a cave, likely to depict spirits of the underworld, the researchers said.  Full Story: Live Science (5/3) 

PHOTOS OF THE DAY

Union flags are hung outside Buckingham Palace in preparation for the Queen’s platinum jubilee
CREDIT:  Dan Kitwood/Getty Images

A person sits on the Kadikoy dock bench in the rain, on the second day of the Eid al-Fitr festival
CREDIT: Onur Dogman/Sopa Images/Rex/Shutterstock

Teenagers read plaques on Memorial Day at Mount Herzl military cemetery
CREDIT: Ronen Zvulun/Reuters

Market Closes for May 4^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1979, the first modern leveraged buyout using high-yield junk bonds—a $381 million deal to take Houdaille Industries private—was completed by Kohlberg, Kravis, Roberts. Over the next six years, Houdaille produced a 33.9% average annual return for KKR’s institutional investors.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 1.3%, or 279.67 to 21,184.95 in Toronto.
The index advanced to the highest closing level since April 22.
Canadian National Railway Co. contributed the most to the index gain, increasing 3.1%.
Paramount Resources Ltd. had the largest increase, rising 12.0%.
Today, 207 of 239 shares rose, while 29 fell; all sectors were higher, led by energy stocks.
Insights
* In the past year, the index had a similar or greater gain seven times. The next day, it advanced four times for an average 0.5% and declined three times for an average 0.9%
* The index advanced 10% in the past 52 weeks. The MSCI AC Americas Index gained 1.9% in the same period
* The S&P/TSX Composite is 4.6% below its 52-week high on April 5, 2022 and 11.2% above its low on May 4, 2021
* The S&P/TSX Composite is up 2.1% in the past 5 days and fell 4.1% 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 13.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.7% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.34t
* 30-day price volatility rose to 14.48% compared with 13.84% in the previous session and the average of 11.91% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 87.7029| 2.3| 32/2
* Financials | 67.4106| 1.0| 24/4
* Materials | 47.1175| 1.7| 46/5
* Industrials | 38.1498| 1.6| 26/4
* Information Technology | 15.8103| 1.3| 12/4
* Real Estate | 9.3122| 1.7| 22/0
* Utilities | 8.2158| 0.8| 14/2
* Communication Services | 3.8524| 0.4| 4/2
* Health Care | 1.1911| 1.0| 7/1
* Consumer Discretionary | 0.9106| 0.1| 11/3
* Consumer Staples | 0.0091| 0.0| 9/2
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian National | 19.1600| 3.1| 126.0| 0.6
* Canadian Pacific | 17.8300| 3.0| 28.0| 5.2
* Enbridge | 17.1300| 2.2| 9.3| 16.4
* Restaurant Brands | -3.4240| -2.3| 212.2| -9.8
* Constellation Software | -5.0790| -1.8| 24.2| -13.9
* Waste Connections | -8.8930| -2.9| 106.9| -3.1

US
By Rita Nazareth
(Bloomberg) — Stocks rallied the most since May 2020 and Treasury yields fell after Federal Reserve Chair Jerome Powell eased concern the central bank will embark on a more aggressive pace of tightening after delivering its steepest rate increase in two decades.
Traders pared their bets on a bigger June hike after Powell said there was “a broad sense on the committee that additional 50 basis-point increases should be on the table for the next couple of meetings.”
He also dashed speculation that the Fed was weighing an even larger hike of 75 basis points in the months ahead, saying that it is “not something that the committee is actively considering.”
The dollar had its largest decline in two months.
The Federal Open Market Committee voted unanimously to increase the benchmark rate by a half percentage point.
It will begin allowing its holdings of Treasuries and mortgage-backed securities to decline in June at an initial combined monthly pace of $47.5 billion, stepping up over three months to $95 billion.
Comments: 
* “This is what it sounds like when doves FLY!” wrote Cliff Hodge, chief investment officer at Cornerstone Wealth. “The key takeaway from the press conference for the markets is that 75 basis points is off the table. The Fed is also optimistic that inflation will ‘flatten out’ over the coming months.”
* “Hiking rates at 50 basis points per meeting is fairly benign considering that market expectations are already priced in. What matters more is where the direction of inflation is headed once the lagging Fed policy has caught up,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.
* “Signaling a series of 50bp moves might be the compromise against doing 75bps in one meeting,” said Neil Dutta, head of economics at Renaissance Macro Research, who noted that the markets had been priced for “peak hawkishness.”
Before the Fed decision, JPMorgan Chase & Co.’s chief Jamie Dimon said the U.S. central bank should have raised rates sooner as price pressures hit the global economy. Treasury Secretary Janet Yellen sees a possible “soft landing” as the Fed moves to bring down inflation. “I do believe we’re going to see solid growth in the coming year,” she said in an interview at a Wall Street Journal event on Wednesday. 
Corporate highlights:
* Lyft Inc. and Uber Technologies Inc. reported quarterly results that pointed to strong demand for rides, but failed to reassure Wall Street that a driver shortage that’s cost the companies hundreds of millions of dollars in bonuses was abating.
* Moderna Inc. reported revenue that beat expectations, but said its Covid vaccine purchase orders for 2022 were unchanged from what it reported three months ago.
* Marriott International Inc.’s earnings topped expectations as avid vacationers bid up room rates, advancing the lodging recovery.

Key events this week: 
* Bank of England rate decision and briefing, Thursday
* OPEC+ convenes virtually for a regular meeting, Thursday
* U.S. April jobs report, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 3% as of 4 p.m. New York time
* The Nasdaq 100 rose 3.4%
* The Dow Jones Industrial Average rose 2.8%
* The MSCI World index rose 1.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.9%
* The euro rose 0.8% to $1.0608
* The British pound rose 0.9% to $1.2616
* The Japanese yen rose 0.7% to 129.17 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 2.92%
* Germany’s 10-year yield was little changed at 0.97%
* Britain’s 10-year yield was little changed at 1.97%
Commodities
* West Texas Intermediate crude rose 5.4% to $107.95 a barrel
* Gold futures rose 0.7% to $1,884.30 an ounce
–With assistance from Andreea Papuc, Abigail Moses, Vildana Hajric, Isabelle Lee and Peyton Forte.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

Yesterday’s home runs don’t win today’s games. –Babe Ruth, 1895-1948.

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