January 30, 2023 Newsletter

Dear Friends,

Tangents: Happy Monday.

On Jan. 30, 1948, Indian political and spiritual leader Mahatma Gandhi was murdered by a Hindu extremist. Go to article » 

The actor Gene Hackman is 93 today.
Vast subterranean aqueduct in Naples once ‘served elite Roman villas’:  Forty years ago, when children in Naples were playing in caves and tunnels under the hill of Posillipo in Italy, they didn’t know their playground was actually a Roman aqueduct.
When they shared their memories with archaeological authorities recently, it kicked off an exploration of one of the longest, most mysterious examples of ancient water infrastructure in the Roman world. Full Story: Live Science (1/30)

Flying saucers to mind control: 24 declassified military & CIA secrets: Government and military secrets can range from terrifying to amusing to downright absurd, but most are nothing short of intriguing.
From a secret U.S. Air Force project to build a supersonic flying saucer to a now-famous World War II-era research program that produced the first atomic bombs to a plan to train domesticated cats to spy on the Soviet Union, here are 24 declassified military and CIA secrets. Full Story: Live Science (1/27)

The universe is slightly hotter than it should be. ‘Dark photons’ could be to blame:  Observations suggest that the intergalactic gas in our universe is a little hotter than it should be. Recently, a team of astrophysicists have used sophisticated computer simulations to propose a radical solution: An exotic form of dark matter known as “dark photons” could be heating the place up.  Full Story: Live Science (1/29)

NASA is going to visit the $10 quintillion asteroid.

15-year-old wins US figure skating title.  Teenager Isabeau Levito is projected to be a future Olympian. Check out her latest major accomplishment.

Bought for $600, this rare painting sold for $3 million.  The once-abandoned work by the Flemish artist Anthony van Dyck was found in a shed. Maybe you have valuable items collecting dust in your garage too?

PHOTOS OF THE DAY

Hyderabad, India
School students scatter flowers on the statue of Mahatma Gandhi on the anniversary of his death. The anniversary of Gandhi, who is widely known in India as Bapu (father), is also observed as Martyr’s Day in the country
Photograph: Noah Seelam/AFP/Getty Images

Amsterdam, Netherlands
The Bust, painted by Rembrandt van Rijn, is unpacked by the Hermitage Museum. More than 30 paintings from The Leiden Collection are due to arrive in Amsterdam. Under the title Rembrandt and contemporaries, these pieces will be exhibited to the public from February to the end of August
Photograph: Hollandse Hoogte/Rex/Shutterstock

Marib, Yemen
Farmers pick oranges during harvest season in a field on the outskirts of Yemen’s north-eastern city
Photograph: AFP/Getty Images
Market Closes for January 30^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2000: As the Internet bubble neared its peak, 17 dot-com companies spent a total of nearly $38 million for network television ads during Super Bowl XXXIV. By the time of the next Super Bowl, at least three had gone into Chapter 11, thanks largely to these outlays.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.7% at 20,572.11 in Toronto.
The move was the biggest since falling 1.1% on Dec. 28 and follows the previous session’s increase of 0.1%.
Shopify Inc. contributed the most to the index decline, decreasing 5.2%. Westshore Terminals Investment Corp. had the largest drop, falling 7.8%.
Today, 170 of 236 shares fell, while 64 rose; 10 of 11 sectors were lower, led by energy stocks.
Insights
* This month, the index rose 6.1%
* The index declined 0.8% in the past 52 weeks. The MSCI AC Americas Index lost 9.6% in the same period
* The S&P/TSX Composite is 7.4% below its 52-week high on April 5, 2022 and 15.1% above its low on Oct. 13, 2022 * The S&P/TSX Composite is down 0.3% in the past 5 days and rose
6.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.6 on a trailing basis and 13.4 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$3.29t
* 30-day price volatility fell to 11.96% compared with 12.69% in the previous session and the average of 13.09% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -53.5221| -1.5| 7/32
Information Technology | -36.2360| -2.7| 1/13
Materials | -21.8990| -0.9| 5/45
Financials | -21.0280| -0.3| 13/15
Real Estate | -2.9001| -0.5| 10/13
Utilities | -2.7364| -0.3| 5/11
Industrials | -2.6808| -0.1| 9/17
Health Care | -2.3938| -2.9| 0/6
Consumer Staples | -1.5087| -0.2| 5/6
Consumer Discretionary | -1.5040| -0.2| 6/9
Communication Services | 4.0633| 0.4| 3/3
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -28.3400| -5.2| 11.9| 34.5
Canadian Natural Resources | -14.3000| -2.3| 5.1| 7.6
Brookfield Corp | -10.7500| -2.2| 1.9| 15.4
BCE | 3.5250| 0.9| 49.6| 5.7
Fairfax Financial | 3.8140| 2.8| -71.9| 9.2
RBC | 4.0380| 0.3| -29.8| 6.1
US
By Isabelle Lee
(Bloomberg) — US stocks declined on Monday as investors turned cautious going into an eventful week that includes the Federal Reserve’s rate decision and a slew of big-tech earnings.
The Nasdaq 100 suffered its worst day since Dec. 22 while the S&P 500 fell the most since Jan. 18. Declines in Apple Inc. and Microsoft Inc. weighed on both the indexes as investors await earnings from companies including Alphabet Inc. and Meta Platforms Inc. this week.
Treasuries dropped, with yields climbing across the curve.
The benchmark 10-year rate rose to around 3.55% after ending last week around 3.50%. A dollar index rose.
Oil fell, with the West Texas Intermediate sliding below $78 a barrel as traders await clues about the Fed’s path ahead.
The Fed is widely expected to raise rates by a quarter percentage point on Wednesday, slowing its pace for a second straight session.
But traders will be watching for the tone officials set for future meetings.
Fed Chair Jerome Powell has continued to push back against traders anticipating rate cuts later this year, emphasizing that he won’t budge until inflation has eased meaningfully.
Stocks have still rallied in January, with investors seemingly brushing off Powell’s “higher-for-longer” warning.
“Investors seem to have forgotten the cardinal rule of ‘Don’t Fight the Fed.’ Perhaps this week will serve as a reminder,” a team of Morgan Stanley strategists led by Michael Wilson wrote in a note.
Investors adding to the rally in stocks this month will be disappointed if they’re in direct defiance of the Fed, the strategists said.
Citi Global Wealth’s Kristen Bitterly echoed this, saying that January’s rally was technical as it was largely driven by 2022’s “laggards and losers.”
Traders are also awaiting the US jobs report later this week.
A less tight labor market is a key goal for the Fed.
Investors have also been parsing a slew of earnings reports, with more to come throughout the week.
Signs of earnings pressure have been raising concerns about the health of the economy and the outlook for equities.
“The week ahead will not only be a Fed story, as Friday’s employment situation report will provide clarity on the strength of the labor market to start the new year,” wrote Ben Jeffery and Ian Lyngen of BMO Capital Markets.
The European Central Bank and the Bank of England are also each projected to hike by half a percentage point when they deliver decisions a day after the Fed. 
Key events this week:
* China industrial profits, PMIs, Tuesday
* Eurozone GDP, Tuesday
* US Conference Board consumer confidence, Tuesday
* Earnings Tuesday include: UBS, Unicredit, Snap and Advanced Micro Devices
* Eurozone Manufacturing PMI, CPI, unemployment, Wednesday
* US construction spending, ISM Manufacturing, light vehicle sales, Wednesday
* FOMC rate decision, Fed Chair Jerome Powell press conference, Wednesday
* Earnings Wednesday include: Meta Platforms and Peloton Interactive
* Eurozone ECB rate decision, President Christine Lagarde press conference, Thursday
* UK BOE rate decision, Thursday
* US factory orders, initial jobless claims, US durable goods, Thursday
* Earnings Thursday include: Alphabet, Apple, Amazon, Qualcomm and Deutsche Bank and Santander
* Eurozone S&P Global Eurozone Services PMI, PPI, Friday
* US unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.3% as of 4:01 p.m. New York time
* The Nasdaq 100 fell 2.1%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.0847
* The British pound fell 0.3% to $1.2349
* The Japanese yen fell 0.4% to 130.46 per dollar
Cryptocurrencies
* Bitcoin fell 4.5% to $22,714.77
* Ether fell 5.4% to $1,554.46
Bonds
* The yield on 10-year Treasuries advanced four basis points to 3.54%
* Germany’s 10-year yield advanced eight basis points to 2.32%
* Britain’s 10-year yield advanced one basis point to 3.34%
Commodities
* West Texas Intermediate crude fell 2.3% to $77.81 a barrel
* Gold futures fell 0.4% to $1,937.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Cristin Flanagan, Peyton Forte and Robert Brand.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

We will fail when we fail to try. –Rosa Parks, 1913-2005.
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