November 16, 2022 Newsletter

Dear Friends,

Tangents:
1885: Louis Riel hanged in Manitoba; led North West Rebellion.
Rodgers and Hammerstein’s musical The Sound Of Music opened on Broadway on this day in 1959.
November 16, 1988: Benazir Bhutto is elected prime minister of Pakistan and becomes the first woman in modern history to lead a Muslim country.
1973: Skylab 4, with three astronauts on board, was launched from Cape Canaveral, Fla., on an 84-day mission.  Go to article »

Americans are using European ancestry to get European passports.

An ancient bronze hand could unlock the mystery of the Basque language.

To the moon! NASA launches Artemis 1, the most powerful rocket ever built:  After months of delay, the most powerful space rocket ever built has blasted off from its Florida launchpad, embarking on the first of two test journeys preceding the mission that will return humans to the moon for the first time since 1972.   The $20 billion Artemis 1 rocket — made up of the six-person Orion capsule perched atop the 30-story Space Launch System (SLS) “mega moon rocket” — fired 8.8 million pounds (3.9 million kilograms) of thrust to lift off at 1:47 a.m. ET Wednesday (Nov. 16) from Launch Pad 39B at NASA’s Kennedy Space Center in Florida, embarking on a 30 day, 1.3 million mile (2.1 million kilometers) maiden voyage to the moon and back.  Full Story: Live Science (11/16)

Hundreds of mummies and pyramid of an unknown queen unearthed near King Tut’s tomb: Just a stone’s throw from King Tut’s tomb, archaeologists have unearthed the pyramid of a never-before known ancient Egyptian queen; a cache of coffins, mummies and artifacts; and a series of interconnected tunnels.  For the past two years, archaeologists have been working at Saqqara, an archaeological site in Giza, about 20 miles (32 kilometers) south of Cairo. Recently, they discovered a trove of coffins and mummies, which may belong to some of King Tut’s closest generals and advisors during his reign (1333 B.C. until his death in 1323 B.C.).  Full Story: Live Science (11/16)

Stunning video captures a virus on the verge of breaking into a cell:  The eerily random path of a virus poised to attack has been caught on video.  Using a new microscopy technique, researchers at Duke University in Durham, North Carolina have visualized a virus bouncing around the intestinal lining, looking for entry into a cell.  Full Story: Live Science (11/15)

How The Simpsons predicted Trump would run in 2024.

PHOTOS OF THE DAY

Florida, US
Nasa’s new Artemis 1 moon rocket lifts off from the Kennedy Space Center in Cape Canaveral, as seen from Harbortown marina on Merritt Island
Photograph: Malcolm Denemark/AP

Prayagraj, India
Boatmen are silhouetted against the setting sun at the Triveni Sangam, the confluence of the Ganges, Yamuna and mythical Saraswati rivers
Photograph: Sanjay Kanojia/AFP/Getty Images

Caracas, Venezuela
The lights of homes covering a hill in the Petare neighbourhood of the city
Photograph: Matias Delacroix/AP
Market Closes for November 16^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1999, Jay Walker, the founder of Priceline.com, bought 2.1 million shares of Priceline’s stock from Delta Air Lines (an early backer of Priceline). Delta locked in a gain of more than $120 million on shares for which it paid less than $2 million. A year later, Walker sold those shares for $8 million—losing $117 million by buying his own stock at the top and selling it at the bottom.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.2% at 19,957.96 in Toronto.
The move follows the previous session’s increase of 0.4%.
Shopify Inc. contributed the most to the index decline, decreasing 3.6%.
OceanaGold Corp. had the largest drop, falling 6.6%.
Today, 157 of 236 shares fell, while 74 rose; 6 of 11 sectors were lower, led by energy stocks.
Insights
* This year, the index fell 6%, heading for the worst year since 2018
* The index declined 8.1% in the past 52 weeks. The MSCI AC Americas Index lost 17% in the same period
* The S&P/TSX Composite is 10.2% below its 52-week high on April 5, 2022 and 11.7% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 3.2% in the past 5 days and rose 8.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 12.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.18t
* 30-day price volatility fell to 20.28% compared with 20.42% in the previous session and the average of 22.23% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -43.6930| -1.1| 3/34
Materials | -30.6223| -1.3| 9/40
Financials | -12.2900| -0.2| 7/22
Information Technology | -10.5102| -0.9| 6/8
Real Estate | -3.6612| -0.7| 5/17
Health Care | -1.4833| -1.7| 1/6
Communication Services | 4.1960| 0.4| 3/2
Utilities | 5.5078| 0.6| 13/3
Consumer Discretionary | 8.8606| 1.3| 7/7
Consumer Staples | 11.6368| 1.4| 8/3
Industrials | 35.2526| 1.4| 12/15
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -15.5200| -3.6| -5.3| -70.5
Canadian Natural Resources | -14.7000| -2.3| 66.3| 54.6
Suncor Energy | -8.3620| -1.8| 103.5| 52.6
Canadian National | 10.0900| 1.5| -7.4| 5.3
Restaurant Brands | 11.7600| 7.0| 81.5| 10.8
Canadian Pacific | 20.7400| 3.2| 43.9| 13.7
US
By Elaine Chen and Isabelle Lee
(Bloomberg) — US stocks declined after strong retail sales data and comments from at least two Federal Reserve speakers recast bets that the central bank’s policy tightening regime is nearing an end.
About 68% of S&P 500 companies ended Wednesday’s session lower.
The index fell after a report showed retail sales posted the biggest increase in eight months in October, outpacing estimates and indicating the economy can withstand additional Fed hikes.
Target Corp.’s disappointing earnings also dampened sentiment.
The tech-heavy Nasdaq 100, which is typically more sensitive to interest rates, dropped as much as 1.7%.
A closely watched part of the US yield curve is now the most inverted it has been since the early 1980s, signaling concerns that restrictive Fed policy will sap the economy.
The market pullback came after a hefty rally fueled by softer-than-expected US inflation data that fanned expectations the Fed may be able to slow its tempo of interest-rate hikes.
While a slew of Fed officials in recent days have backed these expectations, they’ve also emphasized the need to keep hiking into next year.
On Wednesday, New York Fed President John Williams bruised sentiment after he said the central bank should avoid incorporating financial stability risks into its considerations.
San Francisco Fed President Mary Daly, meanwhile, stressed that a pause is “off the table.”
Goldman Sachs Group Inc. now expects the Fed to boost its key rate to a range of 5% to 5.25%, up from the previous call of 4.75% to 5%.
“The market is just trying to grasp for news and it’s prone to overcompensate for the news, whether it’s good news or bad news,” Sandi Bragar, chief client officer at Aspiriant, said by phone. “We’re just at that point in the cycle where we think there’s still the high likelihood for potential downward trajectory of stocks as we head into 2023.”
The stronger retail numbers give the Fed more room to be aggressive, as officials have consistently communicated, Oksana Aronov, alternative fixed income head of markets strategy at JPMorgan Asset Management, said on Bloomberg TV.
The disparate economic data that has hit the markets in recent weeks complicates the central bank’s mandate, she said.
Earlier, comments from US President Joe Biden that Ukrainian air defenses, rather than by Russia, had likely caused Tuesday’s explosion in Poland soothed fears of an escalation in military conflict.
While the White House backed Poland’s call on the matter, it emphasized that Russia was ultimately to blame.
Elsewhere, European Central Bank policy makers may slow down their tempo of rate hikes, with only a 50 basis-point increase next month, according to people with knowledge of the matter.
Key events this week:
* Eurozone CPI, Thursday
* US housing starts, initial jobless claims, Thursday
* Fed’s Neel Kashkari, Loretta Mester speak, Thursday
* US Conference Board leading index, existing home sales, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.4%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.5% to $1.0396
* The British pound rose 0.4% to $1.1916
* The Japanese yen fell 0.1% to 139.44 per dollar
Cryptocurrencies
* Bitcoin fell 1.9% to $16,561.13
* Ether fell 2.8% to $1,211.08
Bonds
* The yield on 10-year Treasuries declined nine basis points to 3.68%
* Germany’s 10-year yield declined 11 basis points to 2.00%
* Britain’s 10-year yield declined 15 basis points to 3.15%
Commodities
* West Texas Intermediate crude fell 1.7% to $85.48 a barrel
* Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Emily Graffeo and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Prepare for the unknown by studying how others in the past have coped with the unforeseeable and the unpredictable. -General George S. Patton, 1885-1945.

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
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www.carolannsteinhoff.com