June 8, 2022 Newsletter

Dear Friends,

Tangents:
June 8, 2020: Former astronaut Kathy Sullivan is the first woman to reach deepest point of the ocean – Challenger Deep in the Marianas Trench.  Formerly the first American woman to spacewalk.
On June 8, 1968, authorities announced the capture in London of James Earl Ray, the suspected assassin of civil rights leader Martin Luther King Jr. Go to article »

Frank Lloyd Wright, architect, b. 1867

50:  That’s how many years it has been since this horrifying photo became a defining image of the Vietnam War and the 20th century. Taken outside the village of Trang Bang on June 8, 1972, the photo shows children fleeing a deadly napalm attack. It became known by the nickname given to the badly burned, naked 9-year-old at its center: “Napalm Girl.” The girl, since identified as Phan Thi Kim Phuc, ultimately survived her injuries and dedicated her life to spreading messages of peace. 

Taco Bell’s new floating restaurant delivers tacos from the sky.  Orders at this new Taco Bell location are delivered via a “vertical lift” to cars. It’s official, we’re living in the future.

Medieval Turkish pirates may have wielded saber discovered in Greece:  A rusty medieval saber, or one-edged sword, unearthed at a fortified Christian monastery in northern Greece might be a deadly weapon that either raiding Turkish pirates or the monastery’s defenders wielded hundreds of years ago.   The discovery of the saber is unusual, as iron weapons from this period usually quickly rust away.
Full Story: Live Science (6/7) 

Five planets are lining up in the night sky this month:  A planetary alignment that has been developing for months is finally here.  Depending on local viewing conditions, Mercury may now be visible alongside Venus, Saturn, Mars and Jupiter in a march across the predawn sky, visible from the Northern Hemisphere. It’s the first alignment of the five visible planets in our solar system since 2020.
Full Story: Live Science (6/7) 

PHOTOS OF THE DAY

A passenger train passing through the Mae Klong railway market. Six times a day local customers and foreign tourists scramble into nooks and crannies while vendors calmly move their woven baskets of goods away from the tracks and close their umbrellas
CREDIT: Manan Vatsyayana/AFP/Getty Images

The peloton rides through Gloucestershire during stage three of the Women’s Tour
CREDIT: David Davies/PA

Charles Smith with his decorated, horse-drawn bowtop, one of thousands of Travellers and Gypsies on the final leg of their journey to the annual Appleby Horse Fair that starts in the Cumbrian town on Thursday
CREDIT: Christopher Thomond/The Guardian

Market Closes for June 8^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1999, drkoop.com, Inc. went public on the Nasdaq, selling 9,375,000 shares at $9.00 each. For a brief shining moment, founder Dr. C. Everett Koop’s stake was worth more than $50 million. Within a year, the online health-care company was on its deathbed.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian banks and railroads slid Wednesday, weighing on the S&P/TSX Composite Index, which declined 0.6% to 20,792.43 in Toronto.
Canadian Pacific Railway Ltd. contributed the most to the index decline, decreasing 2.6%.
Enghouse Systems Ltd. had the largest percentage drop, falling 19.8%.
Today, 171 of 239 shares fell, while 64 rose; 8 of 11 sectors were lower.
Insights
* This quarter, the index fell 5%, heading for the biggest decline since the first quarter of 2020
* The index advanced 3.6% in the past 52 weeks. The MSCI AC Americas Index lost 4.4% 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
* The S&P/TSX Composite is up 0.4% in the past 5 days and rose 0.8% 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$3.35t
* 30-day price volatility rose to 20.05% compared with 19.96% in the previous session and the average of 19.95% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -57.9792| -0.9| 4/24
* Industrials | -40.7929| -1.7| 4/26
* Materials | -18.1229| -0.7| 16/34
* Communication Services | -17.6668| -1.7| 0/7
* Real Estate | -5.5463| -1.0| 2/21
* Consumer Staples | -4.8118| -0.6| 3/8
* Utilities | -2.0951| -0.2| 7/9
* Health Care | -1.6835| -2.0| 0/8
* Information Technology | 1.9150| 0.2| 4/12
* Consumer Discretionary | 7.1146| 1.1| 7/7
* Energy | 8.0217| 0.2| 17/15
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Canadian Pacific | -15.5900| -2.6| 10.1| 2.5
* Royal Bank of Canada | -11.9200| -0.9| -6.9| -1.8
* TD Bank | -11.6700| -1.0| 62.4| -2.2
* Dollarama | 7.0380| 5.3| 84.7| 16.1
* Suncor Energy | 8.0290| 1.5| -46.7| 68.5
* Shopify | 11.4500| 3.1| 0.3| -71.8

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — US stocks fell after a two-day rally and oil continued its relentless rise, fueling worries about inflation and measures by central banks to contain it.
The S&P 500 ended near session lows, with all but one of the 11 major sectors in the red.
The tech-heavy Nasdaq 100 dropped 0.8% after rising as much as 0.5%.
Chipmakers were under pressure after Intel Corp.’s chief financial officer said the current quarter wasn’t going as well as expected.
The stock fell more than 5% and the Philadelphia Semiconductor Index lost almost 2.5%.
Losses deepened as the Securities and Exchange Commission chief previewed overhauls to market rules in the agency’s most-direct response yet to last year’s wild trading in GameStop Corp. and other meme stocks.
Benchmark Treasury yields topped the psychological threshold of 3%.
Oil climbed above $120 a barrel as inventory at a highlighted the supply crunch.
“Investors are nervous about being in no-man’s land as we recover from the bear market last month,” Mike Bailey, director of research at FBB Capital Partners, said. “The two big worries were the China lockdowns and inflation, stemming from energy and the Ukraine conflict. Now we are playing whack-a-mole with global macros, and we just knocked out one, with China, but the other problem with inflation and energy is coming back with a vengeance.”
Sentiment remains fragile on concerns rising rates will stifle economic growth and the outlook for corporate earnings.
The European Central Bank Thursday is set to wind down trillions of euros of asset purchases in a prelude to a rate hike expected in July, while data on US consumer prices later in the week is expected to keep pressure on the Federal Reserve to hike rates.
US CPI data on Friday is expected to show inflation picked up in May from a month earlier, while slowing slightly from a year earlier but staying above the 8% level.
That’s likely to keep pressure on the Fed to stick to aggressive rate hikes. 
More market commentary
* “We’re in another environment where the Fed and the inflation outlook, in particular, continue to dictate the direction of the market,” Kara Murphy, CIO of Kestra Holdings, said by phone.
“And we still have a little ways to go — we know that the Fed is expected to have a couple of very large hikes in the not-too- distant future. Whether the market recovers from here or falls more depends on whether these hikes that are already built into the market do their job.”
* “We believe market pricing of recession risk is more likely to increase rather than decrease from here, and still-expensive  valuations do not provide adequate compensation for the downside risks to activity and earnings,” Evan Brown and Luke Kawa at UBS Asset Management wrote in a report.
* “In the face of such high inflation, uncertainty in the global macro, fiscal cliff here in the US, I think it will be a stretch to really expect a soft landing,” Jimmy Chang, chief investment officer at Rockefeller Global Family Office, said on Bloomberg TV. “Unfortunately, the Fed put is kaput for now.”

Energy shares extended this year’s rally on Wednesday as oil gained after crude inventories in the largest storage hub and gasoline stockpiles dropped.
West Texas Intermediate futures rose more than 2% to more than $122 a barrel.

Key events to watch this week:
* 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 fell 1.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.8%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro rose 0.1% to $1.0715
* The British pound fell 0.4% to $1.2540
* The Japanese yen fell 1.3% to 134.26 per dollar
Bonds
* The yield on 10-year Treasuries advanced six basis points to 3.03%
* Germany’s 10-year yield advanced six basis points to 1.35%
* Britain’s 10-year yield advanced three basis points to 2.25%
Commodities
* West Texas Intermediate crude rose 2.7% to $122.67 a barrel
* Gold futures rose 0.2% to $1,855.60 an ounce
–With assistance from Tugce Ozsoy, Kat Van Hoof, Isabelle Lee, Yiqin Shen, Stephen Stapczynski, Michael Msika, James Hirai, Sagarika Jaisinghani and Andreea Papuc.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

No amount of sophistication is going to allay the fact that all of your knowledge is about the past and all your decisions
are about the future. –Ian H. Wilson, 1923-2014.

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