October 18,2022 Newsletter

Dear Friends,

Tangents:
October 18, 1892: The first long distance telephone line between Chicago and New York was opened.  Go to article ».
October 18, 1922:The British Broadcasting Company (later Corporation) is founded by a consortium, to establish a nationwide network of radio transmitters to provide a national broadcasting service.

Sri Lankan author Shehan Karunatilaka wins 2022 Booker Prize.  Looking for a good read? This novel just received one of the most prestigious literary awards.

Best Chinese food: 32 must-try dishes.  This photo gallery offers a sampling of China’s many different regions.

Bizarre near-Earth asteroid is spinning faster every year – and scientists aren’t sure why:  A potentially hazardous near-Earth asteroid is spinning faster and faster every year, and researchers aren’t sure why.   The space rock, known as 3200 Phaethon, is around 3.4 miles (5.4 kilometers) wide, and its orbit through the solar system takes it closer to the sun than any other named asteroid, reaching a minimum distance of around 13 million miles (20.9 million km) from the sun — less than half the distance from Mercury to the sun.  Full Story: Live Science (10/18)

PHOTOS OF THE DAY

Horses on the gallops at Sam Drinkwater’s Granary Stables in Worcestershire
Photograph: David Davies/PA

Julia Roberts and George Clooney attend the premiere of the movie Ticket to Paradise at Regency Village Theatre
Photograph: Caroline Brehman/EPA

Visitors embrace by The Matter of Time by US artist Richard Serra at the Guggenheim Museum
Photograph: Ander Gillenea/AFP/Getty Images
Market Closes for October 18, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1931, President Herbert Hoover announced the creation of an unemployment-relief commission “to cast sunshine into the habitations of despair.” He also used the word “depression” to describe the U.S. economy, adding that its problems had been “deepened by events from abroad which are beyond the control of either our citizens or our government.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 1%, or 177.16 to 18,798.18 in Toronto.
The index advanced to the highest closing level since Oct. 6.
Toronto-Dominion Bank contributed the most to the index gain, increasing 1.5%.
Iamgold Corp. had the largest increase, rising 18.4%.
Today, 158 of 236 shares rose, while 76 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index fell 11%, heading for the worst year since 2018
* The index declined 10% in the past 52 weeks. The MSCI AC Americas Index lost 19% in the same period
* The S&P/TSX Composite is 15.4% below its 52-week high on April 5, 2022 and 5.2% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 3.2% in the past 5 days and fell 3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.7 on a trailing basis and 11.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.97t
* 30-day price volatility rose to 23.76% compared with 23.70% in the previous session and the average of 19.36% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 56.1564| 1.0| 24/5
Industrials | 44.2889| 1.8| 21/6
Information Technology | 17.0893| 1.7| 13/1
Materials | 13.7962| 0.6| 27/24
Energy | 12.4709| 0.4| 19/19
Utilities | 12.2397| 1.4| 14/2
Communication Services | 10.5310| 1.2| 7/0
Consumer Discretionary | 8.4286| 1.3| 11/3
Consumer Staples | 1.1714| 0.2| 9/2
Real Estate | 1.0001| 0.2| 9/11
Health Care | -0.0121| 0.0| 4/3
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
TD Bank | 16.1700| 1.5| -21.9| -10.6
Canadian National | 14.5000| 2.2| 7.0| 0.4
Canadian Pacific | 13.8900| 2.3| -10.0| 7.1
Canadian Natural Resources | -2.5530| -0.5| -63.1| 39.8
Suncor Energy | -3.5150| -0.9| -38.5| 35.1
First Quantum Minerals | -4.1660| -4.5| 19.2| -24.4
US
By Stephen Kirkland
(Bloomberg) — Stocks continued their rebound from nearly oversold levels as traders took solace from a solid start to the corporate-earnings season even as central banks remain on  hawkish footing.
After almost giving up all of its gains, the S&P 500 notched back-to-back gains to start the week.
Futures extended the advance in late trading after Neflix Inc. delivered a surge in subscribers.
Its shares jumped more than 13% as of 4:40 p.m. in New York.
The biggest ETF that tracks the Nasdaq 100 advanced more than 1%.
United Airlines Holdings Inc. climbed 7% after reporting its results.
During the cash session, the S&P 500 rose 1.1% and is now up 3.8% in two days.
Goldman Sachs Group Inc. climbed on solid results.
Apple Inc. rebounded after briefly turning negative on a report it was cutting production of its iPhone 14 Plus.
“Earnings season offers investors the opportunity to focus more on the actual earnings power of corporate America, and less on the machinations of the backward-looking economic data stream,” said Art Hogan, chief market strategist at B. Riley. “A better-than-feared earnings season may well be the catalyst the market needs to see a break in the steady grind lower.”
Upbeat company results, cheaper valuations and UK policy reversals have helped buoy risk sentiment.
The sentiment on stocks and global growth among fund managers surveyed by Bank of America Corp. shows full capitulation, opening the way for equities to bottom in the first half of 2023.
Still, with headwinds from inflation, risks to the economy and hawkish central banks continuing to confront investors, there’s debate over how durable the gains will prove.
Some regional Fed directors last month favored raising a key interest rate by a smaller or larger amount than the 75 basis points that policymakers ultimately decided was needed to curb persistent inflation, according to minutes of discount-rate meetings released Tuesday.
“There’s still a strong feeling of a bear-market rally about trading over the course of the last week,” said Craig Erlam, senior market analyst at Oanda Europe Ltd. “The economic landscape looks treacherous and we don’t even know if we’re at peak inflation and interest rate pricing yet. Those are substantial headwinds that will make any stock market rebound extremely challenging.”
Key events this week:
* Euro area CPI, Wednesday
* EIA crude oil inventory report, Wednesday
* US MBA mortgage applications, building permits, housing starts, Fed Beige Book, Wednesday
* Fed’s Neel Kashkari, Charles Evans, James Bullard speak, Wednesday
* US existing home sales, initial jobless claims, Conference Board leading index, Thursday
* Euro area consumer confidence, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.8%
* The Dow Jones Industrial Average rose 1.1%
* The MSCI World index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.2% to $0.9856
* The British pound fell 0.3% to $1.1323
* The Japanese yen fell 0.1% to 149.23 per dollar
Cryptocurrencies
* Bitcoin fell 1.5% to $19,227.77
* Ether fell 2.2% to $1,300.61
Bonds
* The yield on 10-year Treasuries declined two basis points to 3.99%
* Germany’s 10-year yield advanced two basis points to 2.28%
* Britain’s 10-year yield declined three basis points to 3.95%
Commodities
* West Texas Intermediate crude fell 2.6% to $83.24 a barrel
* Gold futures fell 0.5% to $1,656.50 an ounce
–With assistance from Vildana Hajric and Peyton Forte.
Have a lovely evening everyone.

Be magnificent!
As ever,

Carolann

Every human heartbeat, he’d said many times, is a  universe of possibilities.  And it seemed to me that I finally understood exactly what he’d meant.  He’d been trying to tell me that every human will has the power to transform its fate.  I’d always thought that fate was something unchangeable: fixed for every one of us at birth, and as constant as the circuit of the stars.  But I suddenly realized that life is stranger and more beautiful than that.  The truth is that, no matter what kind of game you find yourself in, no matter how good or bad the luck, you can change your life completely with a single thought or a single act of love. -Gregory David Roberts, b. 1952., Shantaram.

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