June 3, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.

Allen Ginsberg, writer b. 1926.
Curtis Mayfield, soul musician, b.1942.

On June 3, 1965, astronaut Edward White became the first American to “walk” in space, during the flight of Gemini 4.  Go to article »

An opossum wanders into a bar… and gets tossed out.  Watch what happens when wildlife meets nightlife. Yikes!

A rare, 5-planet alignment will take over the sky.  Calling all stargazers. Look up this weekend for a stellar sight in the night sky.
 
Christie’s to offer rare first edition ‘Harry Potter’ book in private sale.  The auction house is inviting offers starting from $250,000. Let me guess what you’re thinking… “Maybe I have copy hidden on a shelf somewhere.” 

PHOTOS OF THE DAY

A couple get married in Saint Michael’s Cathedral in Kyiv as the city hosts events to celebrate Kyiv Day on the last weekend of May. Following Russia’s retreat from areas around the Ukrainian capital, signs of normal life have returned to the city, with residents taking advantage of shortened curfew hours, businesses reopening, and foreign countries promising to return their diplomats.
CREDIT: Christopher Furlong/Getty Images

Ceremonial king, Jon Haddock, wears a large flower-covered framework while leading a procession on horseback during the Castleton Garland, an ancient tradition that takes place in the village of Castleton. The date of the custom coincides with Oak Apple Day and it is said to commemorate the restoration of King Charles II in 1660. It is thought that the garland represents the oak tree in which he hid after the Battle of Worcester.
CREDIT: Danny Lawson/PA

Afghan boys play cricket at a cemetery in Kabul. There are cemeteries all over Afghanistan’s capital, many of them filled with the dead from the country’s decades of war. They have been incorporated into Afghans’ lives providing open spaces where children play football or cricket or fly kites and where adults hang out as there are few public parks.
CREDIT: Ebrahim Noroozi/AP
Market Closes for June 3^rd, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1880, Alexander Graham Bell transmitted the first message on his new “photophone,” which bounced sound off a mirror and used a beam of sunlight to project the mirror’s vibrations onto a photosensitive receiver. Thus began the era of wireless telecommunications. 
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.1% at 20,790.73vin Toronto.
The move was the biggest since falling 1.9% on May 18 and follows the previous session’s increase of 1.5%.
Shopify Inc. contributed the most to the index decline and had the largest move, decreasing 11.2%.
Today, 192 of 239 shares fell, while 44 rose; 10 of 11 sectors were lower, led by financials stocks.
Insights
* In the past year, the index had a similar or greater loss 16 times. The next day, it declined nine times for an average 0.6% and advanced seven times for an average 0.5%
* This quarter, the index fell 5%, heading for the biggest decline since the first quarter of 2020
* So far this week, the index was little changed
* The index advanced 4.3% in the past 52 weeks. The MSCI AC Americas Index lost 3.6% in the same period
* The S&P/TSX Composite is 6.4% below its 52-week high on April 5, 2022 and 6.7% above its low on May 12, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16 on a trailing basis and 12.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.36t
* 30-day price volatility fell to 20.58% compared with 21.28% in the previous session and the average of 19.06% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -72.8353| -1.1| 1/27
* Information Technology | -58.4252| -5.1| 1/15
* Materials | -49.0023| -1.8| 5/46
* Industrials | -27.3646| -1.1| 4/26
* Consumer Discretionary | -16.4520| -2.4| 0/14
* Communication Services | -6.4784| -0.6| 1/6
* Real Estate | -5.2905| -0.9| 4/19
* Health Care | -3.3585| -3.7| 0/7
* Energy | -1.4722| 0.0| 16/17
* Utilities | -1.0010| -0.1| 8/8
* Consumer Staples | 0.5920| 0.1| 4/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -43.8900| -11.2| 6.2| -74.4
* TD Bank | -14.8000| -1.2| -23.2| -1.4
* Brookfield Asset Management | -13.1500| -2.0| -64.4| -17.2
* Loblaw | 2.1910| 1.7| -3.0| 13.5
* West Fraser Timber | 4.1020| 5.5| 98.6| -1.6
* Suncor Energy | 6.2450| 1.2| -13.5| 62.5
US
By Isabelle Lee and Elaine Chen
(Bloomberg) — US stocks resumed their trend of weekly losses after strong hiring data cleared the way for the Federal Reserve to remain aggressive in its fight against inflation.
Treasuries fell and the dollar strengthened against peers.
The S&P 500 slumped 1.6% afternoon trading, tipping the benchmark index into negative territory for the eighth week in the past nine periods.
Tesla Inc. also dragged tech shares lower Friday after reports the company plans to reduce its salaried workforce.
Meanwhile, energy shares advanced as crude reached $120 a barrel in New York.
Stocks turned sharply lower on Friday after May hiring data topped expectations, suggesting the labor market remains robust enough for the Fed to raise rates quickly as it battles runaway price gains.
The US central bank is expected to raise rates by 50 basis points at its next two meetings.
Market-derived odds for a third hike of that magnitude in September held steady near 85% after the jobs report.
Gold slipped.
“The second half of 2022 is going to be a roller coaster ride for investors unless the Fed is able to bring inflation under control without a hard landing,” said Peter Essele, head of portfolio management at Commonwealth Financial Network. “Most investors seem to be wagering on a crash-and-burn scenario at this point as recessionary fears abound, and equity markets fail to develop any sort of positive momentum.”
Investors remain beholden to economic data and how it will impact the pace of US monetary tightening, as worries mount that a restrictive Fed could throw the world’s largest economy into a recession.
The strong jobs report quelled some concern that growth was slowing too sharply, while at the same time cleared the path for the Fed to stay aggressive.
US May nonfarm payrolls rose 390,000 compared to estimates of 318,000, according to a Bloomberg survey of economists.
Meanwhile, the unemployment rate remained unchanged at 3.6% in the month, versus expectations of 3.5%. 
Here’s what else Wall Street is saying about US payrolls:
* “The labor market is tight and job growth is stable. The Federal Reserve can continue to tighten financial conditions and remove the historic level of accommodation in the markets.” -Jeffrey Roach, chief economist for LPL Financial
* “Another month of solid job growth in May is further evidence that the U.S. economy was not in a recession in the spring …Americans continue to return to the labor force as the rising cost of living pressures household finances.” – Bill Adams, chief economist for Comerica Bank
* “People were hoping for a number that would maybe dissuade the Fed from their stated plan for continual 50 basis point hikes and quantitative tightening, and they didn’t get it today,” Steve Sosnick, chief strategist at Interactive Brokers
* “What this number tells the Fed is: ‘go ahead and keep hiking rates like crazy, because you’re not creating unemployment, you can put pain into risk markets to hopefully cool demand.’ And that’s not what we want to see and I think it’s being reflected in the stock market today.” — Jim Bianco, founder of Bianco Research, on Bloomberg TV
* “We’re going to have this face off trying to figure out about the soft landing and the Fed that’s probably going to continue well into the fall … There’s just a lot of things that suggest volatility is likely to remain elevated.” – Scott Brown, technical market strategist at LPL Financial
* “Equity futures are initially reacting negatively to the report. We look for volatility to continue as investors struggle to find an appropriate multiple on record earnings. However, full employment in the U.S. is a solid buffer against the risk of slowing global growth.” – John Lynch, chief investment Officer for Comerica Wealth Management
* “Best part about the employment report is the uptick in participation … The bad part is that we still need millions more working to reduce the pervasive shortages driving inflation. It’s frustrating that the Fed is trying to damp down demand and restrict hiring when we need to see a string of strong jobs reports.” – Bryce Doty, senior vice president at Sit Investment Associates
* “The Fed decision is a done deal at this point, so this report is more about what it tells us about underlying demand and the economy’s ability to handle everything. It’s a good report that shows the general population is coming back into the labor force.” – Shawn Cruz, head trading strategist at TD Ameritrade

Oil rose, securing its sixth straight week of gains.
The yen held near the psychologically important 130 level against the greenback.
And Bitcoin fell back below $30,000..
Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.6% as of 4:02 p.m. New York time
* The Nasdaq 100 fell 2.7%
* The Dow Jones Industrial Average fell 1.1%
* The MSCI World index fell 1.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.2% to $1.0722
* The British pound fell 0.6% to $1.2498
* The Japanese yen fell 0.8% to 130.86 per dollar
Bonds
* The yield on 10-year Treasuries advanced three basis points to 2.94%
* Germany’s 10-year yield advanced four basis points to 1.27%
Commodities
* West Texas Intermediate crude rose 2.9% to $120.28 a barrel
* Gold futures fell 1% to $1,853.60 an ounce
–With assistance from Emily Graffeo, John Viljoen, Allegra Catelli and Albertina Torsoli.
Have  wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

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

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

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

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