December 12, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.
December 12, 1963: Kenya (formerly British East Africa) declares independence from UK.
1914: The New York Stock Exchange re-opened for the first time since July 30. The market had shut down when World War I broke out. Go to article »

Frank Sinatra, b. 1915.
Gustave Flaubert, b.1821.
Jennifer Connelly, b. 1970.

See 3-year-old’s reaction after spotting her family during dance recital.  This precious little girl was overcome with emotion when she saw her family supporting her in the crowd. See the adorable video here.

Nelly Cheboi named CNN’s Hero of the Year.  This woman quit her lucrative job as a software engineer to help children in need. Watch the moment CNN’s Hero of the Year was announced.

The tourist attractions you can’t visit in 2023.  You can scratch these places off your list… some of these attractions are either under renovation or are saying a permanent goodbye.

Brock Purdy leads San Francisco 49ers in shocking win.  The 22-year-old rookie quarterback was the last pick of this year’s draft. But to everyone’s surprise, he outdueled Tom Brady in a 35-7 blowout win over the Tampa Bay Buccaneers.

Céline Dion’s muscle spasms caused by rare disorder: What is stiff-person syndrome?
Singer Céline Dion was recently diagnosed with a rare neurological disorder called stiff-person syndrome, which has caused her to experience severe muscle spasms, the iconic performer announced Dec. 8 in an Instagram video.
“We now know this is what’s been causing all of the spasms that I’ve been having,” Dion said in the video. “Unfortunately, these spasms affect every aspect of my daily life, sometimes causing difficulties when I walk and not allowing me to use my vocal chords to sing the way I’m used to.” Full Story: Live Science (12/9)

Nobody took John F. Clauser’s quantum experiments seriously. 50 years later, he’s collecting a Nobel Prize.
On Oct. 4, 80-year-old John F. Clauser woke up in his California home to the news that he had been awarded the Nobel Prize in physics. He received the prize at a ceremony in Stockholm, Sweden, on Dec. 10 together with Anton Zeilinger and Alain Aspect for their work on quantum entanglement.
It was a moment of celebration for Clauser, whose ground breaking experiments with particles of light helped to prove key elements of quantum mechanics. Full Story: Live Science (12/9)

PHOTOS OF THE DAY

Pacific Ocean
Navy divers secure Nasa’s Orion capsule during recovery operations after it splashed down following a successful uncrewed Artemis I moon mission, seen from aboard the USS. Portland in the Pacific Ocean off the coast of Baja California, Mexico
Photograph: Caroline Brehman/AFP/Getty Images

Washington DC, US
The annual Zoo Lights decorations are displayed at the Smithsonian’s National Zoological Park
Photograph: Anadolu Agency/Getty Images

Gateshead, England
A dusting of snow decorates the Angel of the North in Gateshead
Photograph: Owen Humphreys/PA
Market Closes for December 12^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1914, the New York Stock Exchange reopened after closing in July amid jitters over the outbreak of World War I. By the end of 1915, the stock market had risen nearly 82% as Western Europe supplied its war effort with American-made goods and weapons.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.4% at 20,017.61 in Toronto.
The move was the biggest since rising 0.9% on Nov. 30 and follows the previous session’s decrease of 0.1%.
Canadian National Railway Co. contributed the most to the index gain, increasing 1.8%.
Filo Mining Corp. had the largest increase, rising 11.4%.
Today, 146 of 237 shares rose, while 83 fell; 9 of 11 sectors were higher, led by energy stocks.
Insights
* This year, the index fell 5.7%, poised for the worst year since 2018
* This quarter, the index rose 8.5%, heading for the biggest advance since the second quarter of 2020
* The index declined 4.2% in the past 52 weeks. The MSCI AC Americas Index lost 16% in the same period
* The S&P/TSX Composite is 9.9% below its 52-week high on April 5, 2022 and 12% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 1.1% in the past 5 days and fell 0.5% 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 15.17% compared with 15.19% in the previous session and the average of 16.51% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 28.3112| 0.8| 30/8
Industrials | 26.1859| 1.0| 24/3
Information Technology | 16.0453| 1.4| 12/2
Utilities | 7.2832| 0.8| 14/2
Consumer Discretionary | 2.0502| 0.3| 7/7
Consumer Staples | 0.9498| 0.1| 5/6
Real Estate | 0.8092| 0.2| 10/7
Materials | 0.7991| 0.0| 23/28
Health Care | 0.4498| 0.5| 4/2
Communication Services | -2.0794| -0.2| 2/4
Financials | -8.1816| -0.1| 15/14
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian National | 12.6400| 1.8| 69.9| 11.4
RBC | 11.7100| 0.9| 6.5| -1.6
Suncor Energy | 9.2170| 2.4| 3.1| 30.6
First Quantum Minerals | -5.0150| -4.0| -5.2| 3.7
CIBC | -5.7250| -1.6| 121.6| -21.9
Brookfield Corp | -16.1000| -3.4| -14.3| -25.6
US
By Isabelle Lee and Emily Graffeo
(Bloomberg) — US stocks advanced with investors gearing up for Tuesday’s reading on consumer prices.
US Treasuries ended Monday lower, erasing earlier gains.
The S&P 500 rose 1.4%, notching its best session in nearly two weeks.
The tech-heavy Nasdaq 100 also climbed more than 1%.
Treasury yields rose, with the 10-year rate around 3.61%.
The dollar advanced.
All eyes will be on the US consumer price index reading on Tuesday, which is expected to show prices, while still high, are continuing to decelerate.
The S&P 500 — in a best-case scenario — could rally as much as 10% on a softer CPI reading, according to JPMorgan Chase & Co.’s sales and trading desk.
However, the chances of that happening is about 5%, according to their analysis.
A cooler inflation reading from the prior month spurred a 5.5% daily surge, with the index notching its best post-CPI day ever.
A subdued CPI print would justify the Federal Reserve’s projected half-point move on Wednesday and shed light on whether markets can expect rate cuts in late 2023.
While central bank officials have indicated a downshift in the pace of rate hikes, they have also emphasized that borrowing costs will need to remain restrictive for some time.
“I wouldn’t read anything into the move today. The move will be after CPI one way or another,” John McClain, portfolio manager at Brandywine Global, said. “People are getting lulled into a false sense of security on a soft landing. The Fed isn’t cutting anytime soon. This is just going to be a longer cycle compared to 2020.”
Following the Fed, the European Central Bank will announce its rate decision Thursday, and may also opt for a half-point hike.
Markets will also contend with decisions from the Bank of England and monetary authorities in Mexico, Norway, the Philippines, Switzerland and Taiwan.
Key events this week:
* US CPI, Tuesday
* FOMC rate decision and Fed Chair news conference, Wednesday
* China medium-term lending, property investment, retail sales, industrial production, surveyed jobless, Thursday
* ECB rate decision and ECB President Lagarde briefing, Thursday
* Rate decisions for UK BOE, Mexico, Norway, Philippines, Switzerland, Taiwan, Thursday
* US cross-border investment, business inventories, empire manufacturing, retail sales, initial jobless claims, industrial production, Thursday
* Eurozone S&P Global PMI, CPI, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.4% as of 4:01 p.m. New York time
* The Nasdaq 100 rose 1.2%
* The Dow Jones Industrial Average rose 1.6%
* The MSCI World index fell 0.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro was little changed at $1.0535
* The British pound was little changed at $1.2271
* The Japanese yen fell 0.9% to 137.73 per dollar
Cryptocurrencies
* Bitcoin was little changed at $17,130.18
* Ether rose 0.2% to $1,267.06
Bonds
* The yield on 10-year Treasuries advanced three basis points to 3.61%
* Germany’s 10-year yield was little changed at 1.94%
* Britain’s 10-year yield advanced two basis points to 3.20%
Commodities
* West Texas Intermediate crude rose 3.4% to $73.41 a barrel
* Gold futures fell 1.1% to $1,791.40 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Srinivasan Sivabalan.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

God save us from people who mean well. -Vikram Seth, b. 1952

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