June 29, 2022 Newsletter

Dear Friends,

Tangents:
1938: Olympic National Park established.
2009: American hedge-fund investment manager Bernie Madoff received a sentence of up to 150 years in prison for operating the largest Ponzi scheme in history.  Go to article »
2007: Apple Inc. releases its first mobile phone, the iPhone.

William James Mayo, co-founder of the Mayo Clinic, b.1861.
Antoine de Saint-Exupéry, writer/adventurer, b.1900.

Early human fossils found in cave are a million years older than expected.  Researchers say these human fossils are 3.4 million to 3.6 million years old. Check out the photos here.

Gigi and Bella Hadid stun runway with partially ‘shaved’ heads.  This fashion runway spectacle was bold, bald and beautiful. 

Will Mars samples contaminate Earth?

PHOTOS OF THE DAY

Two beach-goers look at the clouds before a storm along the Promenade des Anglais
Photograph: Valéry Hache/AFP/Getty Images

People make their way through a century-old tunnel after a ceremony to mark its opening as a tourist attraction at the Niagara Parks power station in Niagara Falls
Photograph: Carlos Osorio/Reuters

A dead fish lies on Po’s dry riverbed, as parts of Italy’s longest river and largest reservoir of freshwater have dried up amid the worst drought in 70 years
Photograph: Guglielmo Mangiapane/Reuters
Market Closes for June 29^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1956, President Dwight D. Eisenhower, spurred on by memories of how easy it was for Allied troops to move along Germany’s autobahns in 1945, and how difficult it had been for an army convoy to cross the U.S. in 1919, signed the Federal-Aid Highway Act, creating the Interstate Highway System.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.7%, or 144.1 to 19,078.64 in Toronto.
Shopify Inc. contributed the most to the index decline, decreasing 5.6%. Aurora Cannabis Inc. had the largest drop, falling 8.8%.
Today, 180 of 239 shares fell, while 58 rose; 8 of 11 sectors were lower, led by energy stocks.
Insights
* This quarter, the index fell 13%, heading for the biggest decline since the first quarter of 2020
* This month, the index fell 8%
* The index declined 5.4% in the past 52 weeks. The MSCI AC Americas Index lost 13% in the same period
* The S&P/TSX Composite is 14.1% below its 52-week high on April 5, 2022 and 2.2% above its low on June 23, 2022
* The S&P/TSX Composite is up 0.4% in the past 5 days and fell 8% in the past 30 days
* 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$3.08t
* 30-day price volatility fell to 19.17% compared with 19.80% in the previous session and the average of 20.31% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -90.7453| -2.5| 1/37
Materials | -39.6889| -1.7| 10/42
Information Technology | -27.0598| -2.6| 1/13
Real Estate | -5.2442| -1.0| 4/19
Consumer Discretionary | -4.8639| -0.8| 1/12
Financials | -3.7499| -0.1| 8/21
Health Care | -2.5500| -3.2| 1/6
Utilities | -2.3916| -0.2| 6/9
Consumer Staples | 4.3537| 0.6| 10/1
Communication Services | 5.3890| 0.5| 4/3
Industrials | 22.4641| 1.0| 12/17
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -19.7700| -5.6| 425.1| -75.5
Suncor Energy | -15.3800| -3.4| -57.7| 43.9
Canadian Natural Resources | -13.3500| -2.3| -50.8| 31.2
Waste Connections | 7.3130| 2.6| -29.5| -6.8
Canadian Pacific | 8.1320| 1.4| -42.1| 0.6
Canadian National | 9.1280| 1.6| -49.1| -6.6
US
By Rita Nazareth
(Bloomberg) — The stock market had a hard time finding direction on Wednesday, with traders assessing comments from central bank chiefs about the outlook for the economy and interest rates.
The S&P 500 closed little changed and slightly above the Fibonacci 38.2% retracement level of about 3,815 that investors have been closely watching.
Quarterly rebalancing of portfolios contributed to the market choppiness.
Treasuries and the dollar advanced.
Federal Reserve Chair Jerome Powell said the US is in “strong shape” and “well positioned to withstand tighter monetary policy.”  He reiterated the commitment to bring inflation down, adding that the process is likely to cause some “pain.” Powell spoke on a panel with European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey.
Volatility gripped markets this year on concern that a hawkish Fed could tip the economy into a recession.
The S&P 500 is on course for its worst quarter since March 2020 amid a surge in Treasury yields.
The US central bank was in denial about inflation and moved too slowly in trying to quell rising prices.
That has put it on a trajectory to create a recession, if it hasn’t already done so, according to Rob Arnott at Research Affiliates. “The froth certainly appears to have been taken out of the financial markets by this year’s stock-and-bond pullback,” said James Solloway, chief market strategist at SEI. “That’s the good news. The bad news is that an economic recession and a corresponding decline in earnings might not yet be fully priced into markets.”
The bond market shifted to price in a half-point rate cut in the Fed’s benchmark rate at some point in 2023, as traders upped their bets on a recession eventually halting the central bank’s aggressive tightening campaign. Fed Bank of Cleveland President Loretta Mester said officials must not be complacent about increases in long-term inflation expectations and should act forcefully to curb price pressures.
US consumer spending expanded in the first quarter at the softest pace of the pandemic recovery, marking a surprise sharp downward revision that suggests an economy on weaker footing than previously thought.
Chief financial officers are growing increasingly downbeat about the economy this year, with a measure of sentiment falling to the lowest in nearly a decade.
Respondents reduced their expectations for growth, according to the latest quarterly results of The CFO Survey, a collaboration of Duke University’s Fuqua School of Business and the Fed Banks of Richmond and Atlanta. “As pre-earnings announcements and analyst revisions hit the tapes, we should have a sense of whether the business side of the equation agrees with what consumers are saying,” said Quincy Krosby, chief equity strategist at LPL Financial.
In corporate news, Peloton Interactive Inc. sank after UBS reaffirmed its sell rating on the at-home fitness company, citing negative user trends.
Carnival Corp. slumped as Morgan Stanley analysts warned that the cruise vacation firm’s shares are at risk of losing all of their value in the event of another demand shock.
Bed Bath & Beyond Inc. plunged as the home-goods retailer reported disappointing results.
What to watch this week:
* China PMI, Thursday
* US personal income, PCE deflator, initial jobless claims, Thursday
* Eurozone CPI, Friday
* US construction spending, ISM Manufacturing, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 rose 0.2%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.7% to $1.0441
* The British pound fell 0.5% to $1.2117
* The Japanese yen fell 0.3% to 136.59 per dollar
Bonds
* The yield on 10-year Treasuries declined eight basis points to 3.09%
* Germany’s 10-year yield declined 11 basis points to 1.52%
* Britain’s 10-year yield declined eight basis points to 2.38%
Commodities
* West Texas Intermediate crude fell 2.2% to $109.31 a barrel
* Gold futures were little changed
–With assistance from Andreea Papuc, John Viljoen, Denitsa Tsekova, Cecile Gutscher, Isabelle Lee, Emily Graffeo, Enrique Roces and Felice Maranz.

Have a wonderful evening.

Be magnificent!
As ever,

Carolann

They are the best communicators who can turn people’s ears into eyes. –Arab Proverb.

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