June 6, 2022 Newsletter

Dear Friends,

Tangents: D-DAY, June 6, 1944.
1944: The United States and allied troops invade at Normandy.  This was the largest air, land and sea invasion in history.  The goal was to surprise Germany, but Germany was ready to fight.  It was the beginning of the end of World War II.  Go to article »

Queen Elizabeth II makes surprise appearance to cap off jubilee.  Thousands flocked to London from around the world to cheer on the 96-year-old monarch. Watch some highlights
from the spectacular celebration here!

Woman gets free couch from Craigslist. See what she found inside the cushions.  Was it luck? Or was it fate? This incredible discovery sounds like a movie plot.

She was her family’s breadwinner on a McDonald’s salary. Now she’s gone into space.  Meet the first Mexican-born woman to reach the edge of space. Historic!

Watch the biggest-ever comet outburst spray dust across the cosmos
The dust trail from the largest comet outburst ever seen will grace the skies this summer — and it’s going to look like a giant hourglass.
The night show will come courtesy of comet 17P/Holmes, which in October 2007 let off a huge flash of gas and dust, brightening by a factor of a million and briefly becoming the largest object in the solar system. In that brief period, its coma, the dust cloud surrounding the comet body, had a bigger diameter than the sun.  Full Story: Live Science (6/3) 

Oldest shoe in Norway, dating to 3,000 years ago, recovered from melting ice patch
The oldest shoe in Norway — a 3,000-year-old bootie from the Bronze Age — is just one of thousands of ancient artifacts that were recovered from the country’s melting mountain ice patches in the past two decades, according to a new report from the Norwegian University of Science and Technology (NTNU).
Unlike objects trapped in acidic soil or beneath gargantuan glaciers, the artifacts recovered from Norwegian ice patches are often found in impeccable condition, showing minimal decomposition and deformation, even after thousands of years of frozen slumber. That’s because ice patches are relatively stable, unmoving and free from corrosive compounds. Perfectly intact weapons, clothing, textiles, and plant and animal remains have all emerged from the ice, helping to bring thousands of years of Norwegian history to light.  Full Story: Live Science (6/3) 

Amino acids were found in an asteroid sample
PHOTOS OF THE DAY

Myles Hunt, the head gardener at the British Normandy Memorial, rakes the grass at sunrise in preparation for commemorations to mark the 78th anniversary of D-day
CREDIT: Kiran Ridley/Getty Images

Pilgrims dressed in Bavarian costumes take part in a traditional Catholic horse-riding procession
CREDIT: Andreas Gebert/Reuters

The Sydney Opera House is illuminated for Vivid Sydney, an annual festival of light, music and ideas
CREDIT: Brendon Thorne/Getty Images

Market Closes for June 6^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1934, the Securities Exchange Act—which created the U.S. Securities & Exchange Commission and required companies to file registration documents with stock exchanges and to file quarterly financial statements with the SEC—was signed into law by President Franklin D. Roosevelt.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.1% at 20,819.09 in Toronto.
The move follows the previous session’s decrease of 1.1%.
Magna International Inc. contributed the most to the index gain, increasing 4.4%.
Peyto Exploration & Development Corp. had the largest increase, rising 8.3%.
Today, 122 of 239 shares rose, while 115 fell; 5 of 11 sectors were higher, led by financials stocks.
Insights
* This quarter, the index fell 4.9%, heading for the biggest decline since the first quarter of 2020
* The index advanced 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 4.2% in the same period
* The S&P/TSX Composite is 6.3% below its 52-week high on April 5, 2022 and 6.9% above its low on May 12, 2022
* The S&P/TSX Composite is down 0.5% in the past 5 days and rose 0.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.1 on a trailing basis and 13 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$3.33t
* 30-day price volatility fell to 20.45% compared with 20.58% in the previous session and the average of 19.75% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 22.8766| 0.3| 19/9
* Energy | 14.9939| 0.4| 22/12
* Information Technology | 13.0556| 1.2| 11/5
* Consumer Discretionary | 6.0533| 0.9| 9/5
* Industrials | 4.8108| 0.2| 22/8
* Utilities | -0.8761| -0.1| 6/10
* Health Care | -1.8325| -2.1| 2/6
* Communication Services | -2.6066| -0.3| 2/5
* Consumer Staples | -3.6459| -0.4| 5/6
* Real Estate | -6.5037| -1.2| 3/20
* Materials | -14.0414| -0.5| 21/29
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Magna International | 6.6850| 4.4| 28.5| -17.9
* Shopify | 5.8070| 1.7| -32.4| -74.0
* Bank of Montreal | 5.3160| 0.9| -35.8| 1.4
* Bank of Nova Scotia | -4.9680| -0.7| 89.8| -5.5
* Nutrien | -6.5190| -1.5| -12.6| 22.0
* Canadian Natural Resources | -9.3900| -1.4| 16.9| 57.2
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — The push and pull between bond yields and equities continued Monday, with stock gains kept in check by a drop in Treasuries that pushed a swath of rates above 3%.
The S&P 500 held onto a gain in a choppy session that saw the index climb as much as 1.5% before paring it back.
Blue chips in the Dow Jones Industrial Average were little changed.
Amazon.com Inc. rose after implementing a 20-for-1 stock split.
Twitter Inc. fell after Elon Musk said he believes the company is breaching their merger agreement by not providing information about spam and fake accounts he demanded.
Stocks rallied early in the session after Beijing’s latest move to ease Covid restrictions boosted speculation this would help abate supply-chain pressures.
Meanwhile, the selloff in Treasuries sent 10-year yields back above 3%, a level not seen since mid-May and a potential headwind for risk sentiment.
Equities have struggled to mount a sustainable rebound amid fears rising borrowing costs will hurt growth and corporate earnings.
“I am actually surprised the market was up as strongly as it was this morning,” said Joe Gilbert, portfolio manager for Integrity Asset Management. “It will be tough to rally, I believe, with the 10-year yield moving meaningfully above 3.00%.”
The pound held gains after UK Prime Minister Boris Johnson survived a leadership vote.
In a secret ballot on Monday evening, 211 Tory MPs voted for Johnson compared with 148 against.
Data last week showing stronger-than-forecast US hiring for May suggested the Federal Reserve won’t waver from its tightening path to rein in price pressures.
But Goldman Sachs Group Inc. economists said the Fed may be able to pull off its aggressive rate-hike plan without tipping the country into recession.
Chinese regulators are set to ease curbs on ride-hailing giant Didi Global Inc. and other US-listed tech firms, sending Didi’s shares up more than 20%.
Chinese internet stock JD.com Inc. led gains on the Nasdaq 100.
Bitcoin rose back above the $31,000 mark.
Market commentary:
* “This year’s decline has not priced-in much of the slowdown in economic growth that we’re going to get this year,” said Matt Maley, chief market strategist at Miller Tabak + Co. “The decline so far has only worked off the overvaluation that existed at the beginning of the year.”
* “Markets are naturally taking it all in and are navigating monetary policy and economic transition,” wrote John Stoltzfus, chief investment strategist at Oppenheimer. “Times like these we have found over the years require patience, prudent diversification and a sense of context. In spite of their troublesome nature in hindsight such downdrafts create opportunity for traders and investors.”
* “A strong consumer that keeps inflation too high for the Fed for too long is a significant risk,” wrote Dennis DeBusschere, the founder of 22V Research. “This week’s CPI report will help determine if price gains are slowing enough to give the Fed comfort or if more aggressive rate hikes/rhetoric will be needed to slow growth. Investors are much more focused on CPI than payroll or other data points.”
* “The upbeat mood was lifted further by signs of Beijing and Shanghai returning to everyday life,” Fiona Cincotta, senior financial markets analyst at City Index, said in a note. “Still, prices and a strong labor report have lifted bets that the Fed may need to act aggressively to rein in inflation. US CPI data and consumer confidence data, both due on Friday, will be the key focus of the market this week.”

The US jobs report Friday quelled some concern that the world’s biggest economy is slowing too sharply, but also strengthened the view that the Fed will keep hiking rates to combat inflation.
Investors bought equities last week, with US stocks seeing a fourth straight week of inflows as a bear market rally continues, according to Bank of America strategists, citing EPFR Global data.

Meanwhile, the European Central Bank is set to announce an end to bond purchases this week and formally begin the countdown to an increase in borrowing costs in July, joining global peers tightening monetary policy in the face of hot inflation.
The ECB is planning to strengthen its support of vulnerable euro-area debt markets if they are hit by a selloff, Financial Times reported.
Tech stocks and crypto are vulnerable in the era of quantitative tightening, our latest MLIV Pulse survey shows.
Key events to watch this week:
* Reserve Bank of Australia policy decision Tuesday
* World Bank’s “Global Economic Prospects” report Tuesday
* Reserve Bank of India rate decision Wednesday
* OECD Economic Outlook, a twice-yearly analysis of major global economic trends and prospects for the next two years. Wednesday
* European Central Bank rate decision, Christine Lagarde briefing, Thursday
* China trade, new yuan loans, money supply, aggregate financing. Thursday
* US CPI, University of Michigan consumer sentiment Friday
* China CPI, PPI Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.4%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.0695
* The British pound rose 0.4% to $1.2536
* The Japanese yen fell 0.8% to 131.87 per dollar
Bonds
* The yield on 10-year Treasuries advanced 10 basis points to 3.04%
* Germany’s 10-year yield advanced five basis points to 1.32%
* Britain’s 10-year yield advanced nine basis points to 2.25%
Commodities
* West Texas Intermediate crude fell 0.5% to $118.31 a barrel
* Gold futures fell 0.3% to $1,844.70 an ounce
–With assistance from April Ma, Andreea Papuc, Nisha Gopalan, Robert Brand, Isabelle Lee and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Memories of our lives, of our works and our deeds will continue in others. -Rosa Parks, 1913-2005.

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