June 24, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.
St. Jean Baptiste Day – day of celebration in Quebec.

June 24 -On this day in 1812, French Emperor Napoleon—who had massed his troops in Poland in the spring to intimidate Russian Tsar Alexander I—and 600,000 troops of his Grand Army launched an ill-fated
invasion of Russia.   Go to article »
1497:Discovery of Newfoundland.

Man loses USB drive with data on entire city’s residents after night out.  Drinks after work probably seemed like a good idea… but now his job may be on the rocks. 

Ohio State University wins trademark for the word ‘THE’.  Say it with emphasis: *THE* Ohio State University. To the masses, it’s just a simple word. But to Buckeye fans, it’s a beloved tradition.

This wordless comedian is now the most-followed person on TikTok.  Meet the 22-year-old TikTok star with facial expressions that say a thousand words.

The Queen has a new hairstyle for the summer.  Her Majesty was seen sporting a shorter hair-do. Check out the British monarch’s latest style choices here.
 PHOTOS OF THE DAY

Tractors and hay bales form a bike-shaped sculpture along the route of the third stage of the Tour de France
CREDIT: Mads Claus Rasmussen/Ritzau Scanpix/AFP/Getty Images

Two horse riders gallop together with their arms entwined during the training session for the ‘Jocs des Pla’ (medieval tournament) during the traditional Saint John festival
CREDIT: Matthias Oesterle/REX/Shutterstock

Nat Young of the US surfs during the opening round of the Oi Rio Pro event at Itauna beach
CREDIT: Buda Mendes/Getty Images

Market Closes for June 24^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1997, the New York Stock Exchange began quoting share prices in 1/16ths, nicknamed “steenths” or “teenies.” In theory, this narrowed the spread between the bid price and the ask price, increasing the net return for investors. But in practice, the move to “teenies” made filling large orders at a good price much harder, raising the cost of many trades.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities surged broadly Friday as investors piled into risk-on assets including health-care and information technology stocks.
Every sector advanced as the S&P/TSX Composite rose 1.85% at 19,062.91 in Toronto.
The move was the biggest since rising 2% on May 13 and follows the previous session’s decrease of 1.5%.
Energy stocks led the market higher, as all sectors gained in Friday; 231 of 239 shares rose, while 7 fell.
Shopify Inc. contributed the most to the index gain, increasing 5.3%. Bausch Health Cos. had the largest percentage increase, rising 19%.
Insights
* In the past year, the index had a similar or greater gain two times. The next day, it advanced after both occasions
* This quarter, the index fell 13%, heading for the biggest decline since the first quarter of 2020
* This month, the index fell 8%
* So far this week, the index rose 0.7%
* The index declined 5.7% in the past 52 weeks. The MSCI AC Americas Index lost 11% in the same period
* The S&P/TSX Composite is 14% below its 52-week high on April 5, 2022 and 2.2% above its low on June 23, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.9 on a trailing basis and 11.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3 trillion
* 30-day price volatility fell to 20.17% compared with 20.35% in the previous session and the average of 20.44% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 84.0526| 2.5| 38/0
* Financials | 52.0681| 0.9| 26/3
* Industrials | 51.8434| 2.3| 28/1
* Materials | 49.5195| 2.2| 50/1
* Information Technology | 42.0686| 3.9| 14/0
* Consumer Staples | 19.5192| 2.5| 11/0
* Communication Services | 15.8824| 1.6| 7/0
* Consumer Discretionary | 11.8619| 1.9| 13/0
* Utilities | 8.3849| 0.9| 16/0
* Real Estate | 5.7724| 1.1| 22/1
* Health Care | 4.8213| 6.3| 6/1
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 19.5900| 5.3| -16.0| -71.5
* Canadian National | 18.6100| 3.2| -12.6| -5.6
* Suncor Energy | 17.7000| 4.3| -49.6| 40.8
* Stella-Jones | -0.2800| -2.0| 88.8| -21.8
* Bank of Nova Scotia| -0.4140| -0.1| 56.3| -15.6
* TD Bank | -3.3800| -0.3| 27.8| -13.7
US
By Emily Graffeo and Isabelle Lee
(Bloomberg) — US stocks rebounded this week from a rout that drove the market down for three straight weeks after recent comments from Federal Reserve officials buoyed sentiment and a reading on inflation expectations eased.
The S&P 500 gained more than 3% Friday, the most since May 2020.
It closed the week up 6.5%, clocking in its best week in nearly a month.
A rally in Treasuries waned in Friday, but the policy-sensitive US two-year yield still recorded its biggest weekly drop since mid-May.
While traders grappled with a flurry of data this week, sentiment improved on Friday after the University of Michigan’s gauge of longer-term consumer inflation expectations settled back from an initially reported 14-year high, potentially reducing the urgency for steeper rate hikes. Investors were also reassured by St. Louis Fed President James Bullard, who said worries over a US recession are overblown.
Fed Chair Jerome Powell hardened his resolve to cool inflation in testimony to lawmakers this week, but some traders found solace in his comments as a signal that the central bank will factor in the probability of a recession as it moves to curtail inflation.
“We’ve now seen a couple of days of positive performance in the market and that’s indicative of a very short-term bear rally,” said Sylvia Jablonski, CEO of Defiance ETFs, by phone.  “The fact that we’re past the Fed meeting and any kind of Fed testimony, barring any additional bad news, this could continue for the next couple of days.”
Earnings season will be the telltale as to whether the rally continues, she said.
Others are still waiting to see how bond markets react to recent Fed comments and economic data.
“The volatility in the fixed income market has been even higher than the equity market when you take the move versus the VIX,” said John Flahive, head of fixed income investments at BNY Mellon Wealth Management. “That’s been really underpinning all the uncertainty across all the capital markets and one of our catalysts needed to kind of calm down the equity market, to get a bit of a footing, would really be for the bond markets to calm down.”

Elsewhere, Bitcoin rose, hovering around $21,000.
The dollar fell.
West Texas Intermediate crude rose after retreating over the previous two sessions.
Sliding raw materials prices have contributed to a moderation in market-based measures of inflation expectations.
“It would appear that the Fed has succeeded at least temporarily” in its mission to cool an overheated economy, Lewis Grant, a senior portfolio manager at Federated Hermes, wrote in a note to clients. “Commodity prices have tumbled from their highs as recession fears grow.”
Sales of new US homes jumped in May, reflecting gains in the West and South and interrupting a months-long skid as the residential real estate market adjusts to rising borrowing costs and still-elevated prices.
The pickup in sales may reflect some buyers locking in their mortgage rate in anticipation of even higher borrowing costs.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 3.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 3.5%
* The Dow Jones Industrial Average rose 2.7%
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.3% to $1.0556
* The British pound rose 0.2% to $1.2284
* The Japanese yen fell 0.2% to 135.21 per dollar
Bonds
* The yield on 10-year Treasuries advanced five basis points to 3.13%
* Germany’s 10-year yield advanced one basis point to 1.44%
* Britain’s 10-year yield declined one basis point to 2.30%
Commodities
* West Texas Intermediate crude rose 2.9% to $107.34 a barrel
* Gold futures fell 0.1% to $1,827.20 an ounce
–With assistance from Sunil Jagtiani, Sagarika Jaisinghani, Cormac Mullen, Abhishek Vishnoi and Cecile Gutscher.
Have  a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

The graveyards are full of indispensable men. –Charles de Gaulle,  1890-1970.

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