March 2, 2023 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

March 2, 1903: In New York City, the Martha Washington Hotel opens, becoming the first hotel exclusively for women.
March 2, 1962: Wilt Chamberlain of the Philadelphia Warriors scored 100 points in a game against the New York Knicks, an NBA record that still stands.  Go to article » 

1899: Mount Ranier National Park established.
1925: Highway numbers introduced.

Theodore Geisel, “Dr. Seuss”, b.1904.

Ex-Navy pilot says he saw UFOs that did things his plane could not do.  Watch this former Navy fighter pilot tell CNN about his unit’s experience with a UFO in 2015. He also shared video of the encounter.

Guy Savoy, lauded as world’s best chef, loses Michelin star.  His renowned restaurant in Paris received some sour news that it’s been downgraded to two Michelin stars.

Japan just found 7,000 islands it didn’t know it had.  With an incredible discovery like this, it’s no shocker that several territorial disputes are already underway.

‘Stranger Things’ is coming back — as a stage play.  Nerds, assemble! Fans bracing themselves to say goodbye to “Stranger Things” after its final season are getting excited about this London stage play

The Great Pyramid of Giza has a hidden corridor.

‘Unreal’ auroras cover Earth in stunning photo taken by NASA astronaut: When seen from Earth, auroras are nothing short of dazzling. But it takes an astronaut’s-eye view to truly appreciate how vast and spectacular these light shows really are.
“Absolutely unreal,” NASA astronaut Josh Cassada tweeted Feb. 28 alongside a gorgeous photo of green auroras swirling around Earth’s far northern latitudes. Cassada snapped the image from the International Space Station, which orbits about 250 miles (400 kilometers) over Earth on average. Full Story: Live Science (3/1)

PHOTOS OF THE DAY

New Delhi, India
The Italian prime minister, Giorgia Meloni, inspects a guard of honour during her ceremonial reception at the forecourt of India’s presidential palace, Rashtrapati Bhavan
Photograph: Altaf Hussain/Reuters

Los Angeles, US
The Hollywood sign stands in front of snow-covered mountains after another winter storm hit southern California
Photograph: Mario Tama/Getty Images

Copenhagen, Denmark
The Little Mermaid sculpture, an emblem of Copenhagen and Denmark, has been vandalised with the addition of a painted Russian flag
Photograph: Ida Marie Odgaard/Ritzau Scanpix/AFP/Getty Images
Market Closes for March 2^nd, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1844, the New York Stock Exchange raised the initiation fee for new members to $400 (or well over $10,000 in modern money).
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.4%, or 77.43 to 20,337.21 in Toronto.
The move was the biggest gain since Feb. 13.
Royal Bank of Canada contributed the most to the index gain, increasing 1.9%. Kinaxis Inc. had the largest increase, rising 5.3%.
Today, 112 of 236 shares rose, while 117 fell; 5 of 11 sectors were higher, led by energy stocks.
Insights
* This quarter, the index rose 4.9%
* So far this week, the index rose 0.6%, heading for the biggest advance since the week ended Jan. 27
* The index declined 4.3% in the past 52 weeks. The MSCI AC Americas Index lost 10% in the same period
* The S&P/TSX Composite is 8.4% below its 52-week high on April 5, 2022 and 13.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.7% in the past 5 days and fell 1.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.8 on a trailing basis and 13.1 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$3.24t
* 30-day price volatility rose to 7.59% compared with 7.52% in the previous session and the average of 8.46% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 38.7386| 1.1| 25/12
Industrials | 27.3242| 1.0| 14/11
Materials | 18.3997| 0.8| 16/33
Information Technology | 11.0517| 0.9| 11/3
Utilities | 2.8005| 0.3| 10/5
Real Estate | -0.4312| -0.1| 11/10
Health Care | -0.4534| -0.6| 2/5
Consumer Discretionary | -1.3187| -0.2| 8/7
Consumer Staples | -2.5916| -0.3| 3/8
Communication Services | -4.2655| -0.4| 2/4
Financials | -17.5140| -0.3| 10/19
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | 24.9300| 1.9| -9.7| 7.0
Nutrien | 19.1300| 5.0| 32.6| 13.5
Canadian National | 12.6600| 1.9| 29.1| -0.4
Tourmaline Oil | -6.5850| -4.8| 84.6| -10.6
Bank of Montreal | -8.7030| -1.4| -34.7| 4.9
TD Bank | -27.6000| -2.4| 65.2| 0.9
US
By Vildana Hajric and Emily Graffeo
(Bloomberg) — US stocks closed Thursday’s session higher, reversing course after Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank could be in a position to pause rate hikes sometime this summer. Treasuries dropped, with yields across the curve piercing 4%.
Traders ditched their low-conviction moves toward the middle of the trading day, pushing the S&P 500 to jump the most in more than two weeks.
The Nasdaq 100 also jumped as investors considered Bostic’s comments somewhat dovish.
Both indexes shrugged off the losses they suffered earlier after data signaled continued resilience in the labor market, supporting the case for the Fed to keep raising rates.
The policy-sensitive two-year rate climbed for a third straight day, its longest rising streak in two weeks.
A dollar index clung onto gains.
While Bostic’s remarks boosted sentiment on Thursday, other central-bank officials in recent days have reinforced their hawkish rhetoric.
Bostic too pledged to let the incoming economic data guide him, a stance shared by Boston Fed’s Susan Collins.
Fed Governor Christopher Waller also said that he’ll support raising rates even more than his current outlook if payroll and inflation data don’t cool as expected.
The focus now is on how much higher interest rates might go in the US and Europe, with swaps markets pricing a peak Fed policy rate of 5.5% in September, and some traders even betting that the benchmark interest rate could rise to 6%.
“Markets are now appropriately pricing in higher inflation and the impact higher interest rates will have on the economy,” said David Spika, president and chief investment officer of GuideStone Capital Management. “So what we saw in January and really going back to October was the markets were incorrectly interpreting a pivot, lower inflation, the Fed was going to stop raising rates, a soft landing — all of that was misguided and now the market is accurately pricing in, alright, the Fed is going to have to keep raising rates.”
Earnings continued to trickle in on Thursday.
Hewlett Packard Enterprise Co. rose in late trading after giving a strong forecast for the current quarter.
One of the world’s biggest chipmakers, Broadcom Inc., presented a robust forecast while Nordstrom Inc. boosted its outlook for annual profit.
Silvergate Capital Corp. ended Thursday’s session at a record low as it raised questions about its own survival.
Investors should expect data to continue to be mixed even as inflation comes down, according to Chris Harvey, Wells Fargo’s head of equity strategy.
“We’re in a good situation where the economy has not cracked,” he said on Bloomberg Television. “Ultimately we are going to get to a lower level of inflation, but 2% I think is more aspirational than anything else.”
Sarah Hunt of Alpine Woods Capital Investors also said that some of the impact of the Fed’s persistent rate hikes may not be seen just yet.
“I do think that there are parts of the economy for which those changes don’t happen so quickly,” she said on Bloomberg Television. “Wall Street is so used to focusing on the quarters that we lose sight of the fact that wage negotiations don’t happen every time the Fed changes rates, it happens once a year or once every couple of years depending on the industry.”
Meanwhile, data on Thursday also showed euro-area inflation slowed by less than anticipated and underlying price pressures surged to a new record, heaping pressure on the European Central Bank to drive up rates further.
ECB interest rates are now seen rising above 4% and German benchmark bond yields traded above 2.7%. 
Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.8% as of 4:02 p.m. New York time
* The Nasdaq 100 rose 0.9%
* The Dow Jones Industrial Average rose 1.1%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.6% to $1.0599
* The British pound fell 0.7% to $1.1950
* The Japanese yen fell 0.4% to 136.74 per dollar
Cryptocurrencies
* Bitcoin fell 0.4% to $23,455.9
* Ether fell 0.8% to $1,644.63
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 4.06%
* Germany’s 10-year yield advanced four basis points to 2.75%
* Britain’s 10-year yield advanced four basis points to 3.88%
Commodities
* West Texas Intermediate crude rose 0.3% to $77.96 a barrel
* Gold futures fell 0.1% to $1,842.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cecile Gutscher, Sujata Rao, Isabelle Lee and Alice Atkins.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
I learned that courage was not the absence of fear, but the triumph over it. –Nelson Rolihlahla Mandela, 1918-2013.

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