June 10, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.
1940: Italy declared war on France and Britain; Canada declared war on Italy.   Go to article »
1910: Ballpoint pen patented.

Perseverance rover has made a friend on Mars.  The rover has a new pet on the red planet! But it’s probably not the type of pet you’re thinking of.

11-year-old gets plucked from audience and stuns judges on ‘America’s Got Talent’.  And just like that, a star is born. 

Mystery creature is caught on camera and authorities need help ID’ing it.  Texas officials are asking the public to help identify this mystery “wolfman” creature. What do you think it is? 

Scientists discover viruses that secretly rule the world’s oceans.  Thousands of mysterious viruses that were recently discovered lurking in the world’s oceans may exert huge influence over the ecosystems, in part by “reprogramming” the hosts they infect, scientists reported.  The new research, published Thursday (June 9) in the journal Science, focuses on viruses that contain RNA, a molecular cousin of DNA. Examples of RNA viruses abound in human disease; for instance, coronaviruses and influenza viruses are both RNA-based. However, when it comes to the RNA viruses in the ocean, scientists are only just learning about the variety that can be found and the range of hosts they can infect.  Full Story: Live Science (6/9) 

‘Rubber-ducky’ asteroid 200 million miles away holds building blocks of life.  For the first time, scientists have found the building blocks for life on an asteroid in space.  Japanese researchers have discovered more than 20 amino acids on the space rock Ryugu, which is more than 200 million miles from Earth.  Full Story: Live Science (6/9) 
 
Weird type of fast radio burst discovered 3 billion light-years away.  Astronomers have used two of the world’s largest radio telescopes to discover the second-known example of a new type of fast radio burst (FRB) — the mysterious, extremely powerful explosions of radio waves that pulse through space thousands of times a day.  The new FRB, called FRB 190520, is strong evidence that multiple celestial objects could be the source of these enigmatic signals.  Full Story: Live Science (6/9) 
PHOTOS OF THE DAY

A Bonelli’s eagle in a breeding centre in the western Pays de la Loire region
CREDIT: Sebastien Salom-Gomis/AFP/Getty Images

A man rides his bike over a hill on the outskirts of the city as the sun rises
CREDIT: Michael Probst/AP

A night view of the ancient town area of the city in north-western Gansu province. A block of historical buildings has been recently renovated in an attempt to preserve the city’s cultural heritage
CREDIT: Xinhua/Rex/Shutterstock

Market Closes for June 10^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1997, the Dow Jones Industrial Average closed above 7,500 for the first time, and The Wall Street Journal noted that the market’s climb “seems to inspire equal parts awe and dread among many investors.” 
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities notched their worst week since mid-May as a hot US consumer-price index added to concern the Federal Reserve may be even more aggressive with rate hikes.
The S&P/TSX Composite fell for the third day, dropping 1.4%, or 289.07, to 20,274.82 in Toronto.
The move was the biggest since May 18.
Canadian Pacific Railway Ltd. contributed the most to the index’s dropped, tumbling 4%.
Goeasy Ltd. had the largest drop, falling 7.9%.
On Friday, 190 of 239 shares fell, while 48 rose; all sectors but materials retreated.
Insights
* In the past year, the index had a similar or greater loss 12 times. The next day, it declined eight times for an average 0.7% and advanced four times for an average 0.3%
* This quarter, the index fell 7.4%, heading for the biggest decline since the first quarter of 2020
* So far this week, the index fell 2.5%
* The index advanced 1.1% in the past 52 weeks. The MSCI AC Americas Index lost 9.7% in the same period
* The S&P/TSX Composite is 8.7% below its 52-week high on April 5, 2022 and 4.1% above its low on May 12, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of  15.8 on a trailing basis and 12.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.29t
* 30-day price volatility fell to 19.31% compared with 19.52% in the previous session and the average of 19.98% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -133.5501| -2.1| 1/27
* Industrials | -53.2735| -2.3| 2/28
* Energy | -52.8648| -1.3| 0/34
* Information Technology| -41.9028| -3.8| 1/15
* Consumer Discretionary| -19.9804| -3.0| 0/14
* Real Estate | -12.5743| -2.3| 0/23
* Consumer Staples | -10.5027| -1.3| 4/7
* Communication Services| -8.1853| -0.8| 1/6
* Health Care | -2.8239| -3.5| 1/7
* Utilities | -2.1502| -0.2| 7/9
* Materials | 53.3680| 2.1| 31/20
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Canadian Pacific | -23.4600| -4.0| 9.5| -2.1
* Royal Bank of Canada | -23.2500| -1.8| -23.7| -4.2
* Shopify | -20.9000| -5.7| -17.5| -74.5
* Franco-Nevada | 10.3800| 4.4| 0.4| 7.2
* Agnico Eagle Mines | 11.8500| 5.8| 9.2| 2.7
* Barrick Gold | 16.6400| 5.3| 67.6| 11.8
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — US stocks tumbled the most in three weeks and Treasury yields spiked higher after an unexpectedly hot reading in consumer prices fueled bets the Federal Reserve will have to step up its battle against inflation.
The S&P 500 fell 2.9%, closing out the second worst week this year and the ninth weekly drop in the past 10, as fears mounted that efforts to combat inflation risk stifling growth.
Tech shares bore the brunt of Friday’s rout, with the Nasdaq 100 tumbling more than 3%.
Growth stocks from Cathie Wood’s flagship ETF to software developers and chipmakers plunged.
A separate report showed US consumer sentiment dropped in early June to a record, adding to pressure on shares of airlines, casinos and hotels.
In the Treasury market, two-year yields topped 3%, a level not seen since 2008, while the move in short rates left 30-year yields below those on five-year notes, signaling the risk that tightening will slow growth.
Bitcoin slid back below $30,000, the Cboe Volatility Index surged to 29 and the dollar advanced.

Rates traders ramped up bets on Fed hikes, with three half-point increases now likely over the June, July and September policy meetings, according to market-derived prices.
The central bank has signaled it will likely raise rates by 50 basis points when it meets next week.
The consumer price index rose 1% from a month earlier and 8.6% on the year, topping all estimates.
Shelter, food and gas were the largest contributors.
The so-called core CPI, which strips out the more volatile food and energy components, rose 0.6% from the prior month and 6% from a year ago, also above forecasts.
“It is straightforward bad,” Dennis DeBusschere, the founder of 22V Research, said. “Flat month-over-month on core  means more financial conditions tightening. Powell should sound pretty hawkish next week given the tight labor market and core CPI that didn’t fall month-over-month. The reaction in the front end was massive relative to long end.”
Separately, the University of Michigan’s preliminary June sentiment index fell to 50.2 from 58.4 in May, data released Friday showed.
The figure was weaker than all estimates in a Bloomberg survey of economists which had a median forecast of 58.1.
Wall Street weighs in on inflation, rates and stocks:
* “From a Fed perspective, the chase continues, and more aggressive Fed measures will likely be needed to catch up to runaway inflation,” Charlie Ripley, senior investment strategist for Allianz Investment Management, wrote in a note. “Whether this translates to more aggressive hikes this summer, or a continuation of 50 basis point hikes this fall is the option for the Fed, but the overall reality for the Fed is that inflation is not under control, and they have their work cut out for them in the coming months.”
* “One concerning development we’ve been seeing in prior inflation readings is that the stickier core components were beginning to catch fire – and we saw this accelerate with the latest core print,” said Max Gokhman, chief investment officer for AlphaTrAI. “That means Fed firefighters have to fight harder and that means stock bulls might get burned.”
* “The CPI report is another reminder that equity markets will no longer be coddled by monetary policy,” John Lynch, chief investment officer at Comerica Wealth Management, said in a note. “We look for volatility to continue until equity markets accept that the Fed’s target rate gets to at least 3.0%, and not obsess over the magnitude of incremental moves at the next several policy meetings.”
* “Today’s report should extinguish any pretense that a ‘pause’ in rate hikes will likely be appropriate by the end of summer,” Jason Pride, chief investment officer of private wealth at Glenmede, said in a note. “Investors should expect the Federal Reserve to continue on its 50-bp rate hike path next week and beyond until inflation shows meaningful signs of decelerating toward the Fed’s 2–3% target range.”

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.9% as of 4 p.m. New York time
* The Nasdaq 100 fell 3.6%
* The Dow Jones Industrial Average fell 2.7%
* The MSCI World index fell 2.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.8%
* The euro fell 0.9% to $1.0519
* The British pound fell 1.4% to $1.2312
* The Japanese yen was little changed at 134.38 per dollar
Bonds
* The yield on 10-year Treasuries advanced 11 basis points to 3.15%
* Germany’s 10-year yield advanced nine basis points to 1.52%
* Britain’s 10-year yield advanced 12 basis points to 2.45%
Commodities
* West Texas Intermediate crude fell 0.7% to $120.61 a barrel
* Gold futures rose 1.3% to $1,876.50 an ounce
–With assistance from Cecile Gutscher, Denitsa Tsekova, Peyton Forte, Isabelle Lee and Edward Bolingbroke.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Honor bespeaks worth.
Confidence begets trust.
Service brings satisfaction.
Cooperation proves the quality of leadership. -James Cash Penney, 1875-1971.

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