November 2, 2022 Newsletter

Dear Friends,

Tangents:
Day of the Dead, Mexico.
All Souls Day, Roman Catholic calendar.

November 2, 1936: The British Broadcasting Corporation begins the BBC Television Service, the world’s first regular “high definition” channel.  We now know it as BBC1, as it was named in 1964.
November 2, 1947: Howard Hughes piloted his huge wooden airplane, the Spruce Goose, on its only flight, which lasted about a minute over Long Beach Harbor in California.  Go to article »

Marie Antoinette, Queen Consort of Louis XVI of France, b.1755.
Daniel Boone, frontiersman, b. 1734.

This dashcam video is cracking up cops.  A man’s unusual behavior during a traffic stop has officers comparing him to Forrest Gump. Watch the video here.

Five women help doctors crack the mystery of long Covid.

$50,000 Japanese turntable is what your vinyl’s been waiting for.

Wreck of 17th-century warship discovered in Sweden: The wreck of a 17th-century Swedish warship called Äpplet — a sister ship of the famous Vasa, which sank only an hour into its maiden voyage in 1628 — has been discovered in the intricate waterways that lead to Stockholm, where it was deliberately sunk to protect the city from seaborne attacks in 1659.  The wreck is near the island of Vaxholm, but its exact location and depth are being kept secret; access to the site is controlled by the Swedish navy because the wreck is in a militarily sensitive area near the Swedish capital. Full Story: Live Science (10/31)

Enormous river discovered beneath Antarctica is nearly 300 miles long:  A river longer than England’s Thames flows beneath the Antarctic ice sheet, draining an area the size of France and Germany combined, new research reveals.  This under-ice river was discovered using ice-penetrating radar mounted on aircraft. In a series of aerial surveys, researchers discovered a river system snaking 285 miles (460 kilometers) and draining into the Weddell Sea.
Full Story: Live Science (11/2)
PHOTOS OF THE DAY

Paris, France
Two costumed participants at France’s largest video game fair, Paris Games Week, which was held after the cancellation of two editions due to the pandemic
Photograph: Emmanuel Dunand/AFP/Getty Images

New York, US
Dancers of the Paul Taylor dance company perform Scrudorama during a rehearsal at the Lincoln Center’s David H Koch Theater
Photograph: Sarah Yenesel/EPA

Michoac
án, MexicoA Day of the Dead celebration held by the Purépecha indigenous community of Cucuchucho, on the shores of Lake Pátzcuaro. People adorn the tombs of the dead and remain in the pantheon throughout the night waiting for their relatives. Tradition says that on the night of 1 November, the souls of the dead return to the world of the living
Photograph: Enrique Castro/AFP/Getty Images
Market Closes for November 2nd, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📻 On this day in 1920, the first widespread commercial radio broadcast hit the air as station KDKA in Pittsburgh sent out bulletins on the Presidential election to an audience of hundreds of ham radio operators. The broadcast was made by Leo Rosenberg, speaking through a retooled telephone mouthpiece from a wooden shack on the roof of a Westinghouse factory. His first words were, “We shall now broadcast the election returns.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.2% at 19,277.01 in Toronto.
The move was the biggest since falling 1.5% on Oct. 14 and follows the previous session’s increase of 0.5%.
Agnico Eagle Mines Ltd. contributed the most to the index decline, decreasing 7.1%.
Ero Copper Corp. had the largest drop, falling 17.8%.
Today, 194 of 236 shares fell, while 39 rose; all sectors were lower, led by materials stocks.
Insights
* This year, the index fell 9.2%, heading for the worst year since 2018
* The index declined 8.9% in the past 52 weeks. The MSCI AC Americas Index lost 20% in the same period
* The S&P/TSX Composite is 13.2% below its 52-week high on April 5, 2022 and 7.9% above its low on Oct. 13, 2022
* The S&P/TSX Composite is unchanged in the past 5 days and rose 4.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13 on a trailing basis and 12 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$3.11t
* 30-day price volatility rose to 22.54% compared with 22.40% in the previous session and the average of 22.47% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -95.3828| -4.3| 3/47
Financials | -47.8755| -0.8| 3/25
Industrials | -30.6109| -1.2| 1/26
Information Technology | -26.7662| -2.5| 0/14
Consumer Discretionary | -12.1748| -1.7| 4/10
Energy | -10.6066| -0.3| 14/24
Consumer Staples | -7.0651| -0.9| 1/10
Real Estate | -4.0936| -0.9| 7/14
Health Care | -3.5446| -4.2| 0/7
Communication Services | -1.5290| -0.2| 1/6
Utilities | -1.0474| -0.1| 5/11
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Agnico Eagle Mines | -13.9100| -7.1| 105.3| -13.8
Brookfield Asset Management | -13.5700| -2.5| 26.8| -30.4
Barrick Gold | -11.9500| -4.8| 170.5| -18.5
Pembina Pipeline | 1.3380| 0.8| 33.1| 17.0
Tourmaline Oil | 2.2830| 1.4| -12.3| 107.8
TC Energy | 5.1550| 1.2| -6.7| 2.6
US
By Rita Nazareth
(Bloomberg) — Stocks sold off as Jerome Powell continued to sound unequivocally hawkish as the Federal Reserve pushes ahead with it most-aggressive tightening campaign since the 1980s to thwart inflation.
In a session of several ups and downs, the S&P 500 suffered its worst rout on a Fed decision day since January 2021.
Stocks moved decidedly lower after Powell said the Fed still has “some ways to go” in its policy cycle, adding that it’s premature to think about a pause as rates could peak at higher levels than previously thought.
Equities briefly rose when he said that a slower pace of hikes could come as soon as December.
Mega cap tech bore the brunt of the selling, with giants like Apple Inc. and Tesla Inc. tumbling more than 3.5%.
In late trading, Qualcomm Inc., the biggest maker of smartphone processors, slumped on a weak forecast.
Two-year US yields — which are more sensitive to imminent Fed moves – reversed course and pushed higher. T
the dollar gained.
“When Powell made his comments regarding nothing pivot-related, or no shot of that, I think that was the ‘dagger’ for the market,” said Alon Rosin, head of institutional equity derivatives at Oppenheimer & Co.
The Federal Open Market Committee said that “ongoing increases” will still likely be needed to bring rates to a level that are “sufficiently restrictive to return inflation to 2% over time,” in fresh language added to their statement.
Officials unanimously decided to lift the target for the benchmark rate by another 75 basis points to a range of 3.75% to 4%, its highest level since 2008.

Comments:
Ronald Temple, head of US equity at Lazard Asset Management: “This is not an environment in which the Fed will pivot or signal a pivot. To do so would be malpractice, and the Fed knows that. In December, the Fed will have two more inflation reports and two more jobs reports. Then, perhaps, the FOMC can signal a deceleration in tightening, but not before.”
Ian Lyngen and Ben Jeffery, strategists at BMO Capital Markets: “One thing is obvious from the Fed’s tone; ‘Santa Pause’ ain’t coming to town.”
Edward Moya, senior market analyst at Oanda: “Stocks might struggle here as the risk of the Fed taking rates above 5.00% are clearly still on the table.”
Sam Stovall, chief investment strategist at CFRA: “Of course data will largely determine the policy path going forward. Our best guess is that the Fed continues to take the more hawkish path.”
Quincy Krosby, chief global strategist at LPL Financial: “Factoring in the bond market’s assessment, markets are becoming increasingly convinced that the path towards the terminal rate will include a recession.”
Data Wednesday showed hiring at US companies rose in October by more than forecast, underscoring resilient labor demand despite the Fed’s efforts to cool the economy.
A strong job market has fueled fast wage growth, contributing to rapid inflation and putting pressure on the Fed to aggressively tighten monetary policy.
The Treasury halted the longest string of cutbacks to its quarterly sales of longer-term debt in about eight years, showcasing the end of a period of historic reduction in the fiscal deficit.
In corporate news, Boeing Co.’s chief said the plane maker could generate $10 billion in cash annually by mid-decade, once it turns around its operations after years of setbacks and miscues.
China has ordered a seven-day lockdown of the area around Foxconn Technology Group’s main plant in Zhengzhou, a move that will severely curtail shipments in and out of the world’s largest iPhone factory.
Key events this week:
* Bank of England rate decision, Thursday
* US factory orders, durable goods, trade, initial jobless claims, ISM services index, Thursday
* ECB President Christine Lagarde speaks, Thursday
* US nonfarm payrolls, unemployment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.5% as of 4 p.m. New York time
* The Nasdaq 100 fell 3.4%
* The Dow Jones Industrial Average fell 1.6%
* The MSCI World index fell 1.7%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.5% to $0.9830
* The British pound fell 0.8% to $1.1395
* The Japanese yen rose 0.3% to 147.77 per dollar
Cryptocurrencies
* Bitcoin fell 1.1% to $20,245.42
* Ether fell 2.5% to $1,536.43
Bonds
* The yield on 10-year Treasuries advanced four basis points to 4.08%
* Germany’s 10-year yield advanced one basis point to 2.14%
* Britain’s 10-year yield declined seven basis points to 3.40%
Commodities
* West Texas Intermediate crude rose 1% to $89.23 a barrel
* Gold futures fell 0.6% to $1,640 an ounce

–With assistance from Lu Wang, Vildana Hajric and Emily Graffeo.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Never does a person portray his own character more vividly than in his manner of portraying another.  -Jean Paul Richter, 1763-1825.

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