June 1, 2023, Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

June 1, 1967: The Beatles release their album “Sgt. Pepper’s Lonely Heats Club Band,” which becomes one of the most influential and acclaimed albums in the history of popular music.
1980: CNN debuted.
June 1, 2009, General Motors filed for Chapter 11, becoming the largest U.S. industrial company to enter bankruptcy protection.  Go to article > 

Megalodon tooth necklace spotted in digital scan of Titanic wreck.  For more than 100 years, this necklace carrying the tooth of a megalodon shark has sat at the bottom of the ocean.

This UK castle could be yours for $37,000.  But there’s a catch.

New ‘quasi-moon’ discovered near Earth has been travelling alongside our planet since 100 BC
Astronomers recently identified asteroid 2023 FW13 as a quasi-moon, a space rock orbiting the sun nearly in tandem with Earth. Read More.

Listen to the sounds of Pando, the largest living tree in the world
Researchers have recorded the sounds of the world’s largest tree, a 13-million-pound behemoth known as Pando that stretches across 106 acres in southern Utah. Read More.

Suspected Russian spy whale is looking for love in all the wrong places
A beluga whale that was discovered wearing a suspicious harness in 2019 is on the move in search of other belugas. But it’s heading in the wrong direction. Read More.

Elon Musk’s SpaceX wins Pentagon deal for Starlink in Ukraine.
PHOTOS OF THE DAY

Melrose, UK
A pink rhododendron in full bloom at Abbotsford, the home of Sir Walter Scott in Scotland.  Photograph: Phil Wilkinson/Alamy Live News/Alamy Live News.

Ella, Sri Lanka
A worker picks tea. The country’s central bank predicts the economy will shrink by 2% in 2023.  Photograph: Rebecca Conway/Getty Images

To Bend the Ear of the Outer World at Gagosian
This group show includes work by Frank Bowling, Gerhard Richter, Mark Bradford, Stanley Whitney and more. Here is Jadé Fadojutimi’s And willingly imprinting the memory of my mistakes, 2023. It examines the significance of abstract painting today. To Bend the Ear of the Outer World is at Gagosian until 25 August.  Photograph: Mark Blower/Gagosian
Market Closes for June 1^st, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1720, one of the greatest speculative bubbles in history entered its final ascent. South Sea Co. stock shot from £610 to £870 and kept climbing. The bubble burst by end-summer and shares fell below £150, leaving investors including Sir Isaac Newton and Jonathan Swift, author of Gulliver’s Travels, with big losses.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.5% at 19,672.25 in Toronto.
The move follows the previous session’s decrease of 0.8%.
Enbridge Inc. contributed the most to the index gain, increasing 1.9%.
NexGen Energy Ltd. had the largest increase, rising 10.3%.
Today, 147 of 232 shares rose, while 83 fell; 7 of 11 sectors were higher, led by energy stocks.
Insights
* This quarter, the index fell 2.1%
* So far this week, the index fell 1.2%
* The index declined 5% in the past 52 weeks. The MSCI AC Americas Index gained 2% in the same period
* The S&P/TSX Composite is 6.5% below its 52-week high on June 2, 2022 and 10.1% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 0.5% in the past 5 days and fell 4.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.9 on a trailing basis and 13.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.12t
* 30-day price volatility rose to 11.42% compared with 11.22% in the previous session and the average of 9.69% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 53.1709| 1.6| 29/11
Materials | 43.6380| 1.9| 46/4
Consumer Discretionary | 6.2036| 0.9| 10/5
Consumer Staples | 2.9493| 0.4| 7/4
Industrials | 2.5099| 0.1| 19/8
Financials | 0.3280| 0.0| 16/12
Real Estate | 0.1053| 0.0| 8/13
Health Care | -0.0979| -0.1| 3/3
Communication Services | -1.6157| -0.2| 2/2
Utilities | -2.4552| -0.3| 4/12
Information Technology | -4.7485| -0.3| 3/9
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Enbridge | 12.9400| 1.9| -23.0| -8.0
Cameco | 8.9260| 7.9| 236.0| 32.8
Canadian National | 7.2120| 1.1| 6.3| -3.8
National Bank of Canada | -4.7780| -2.1| 13.9| 4.4
Canadian Pacific Kansas | -5.2330| -0.8| -24.6| 1.7
Thomson Reuters | -6.3970| -3.4| 44.6| 8.0
US
By Rita Nazareth
(Bloomberg) — A renewed rally in tech giants extended this year’s surge in the S&P 500 to almost 10% ahead of Friday’s jobs report amid bets the Federal Reserve will pause its interest-rate hikes in June.
After a brief respite in the colossal advance of big tech fueled by the artificial-intelligence frenzy, the cohort is back in full force.
Nvidia Corp. climbed about 5%, leading gains in the Nasdaq 100.
Aside from the obsession for anything AI-related that drove mega-caps up 17% in May, the industry also got a boost amid a slide in bond yields and better-than-estimated sales at Dell Technologies Inc.
“One can rightly ask how many more ‘Mays’ we can have, where US big tech is almost the only place to find outsized positive equity returns anywhere in the world,” said Nicholas Colas, co-founder of DataTrek Research. “The old Keynesian saying that goes, ‘markets can remain irrational longer than you can stay solvent’ feels especially relevant in the current investment environment.”
The S&P 500 rose 1% on Thursday, reclaiming its 4,200 mark.
A contrarian indicator from Bank of America Corp. that tracks Wall Street strategists’ average recommended allocation to stocks is the closest it has been to notching a “buy” signal in over six years.
To Matt Maley at Miller Tabak, no matter how bullish investors might be about the potential for artificial intelligence, they should be prepared to weather corrections along the way.
“Investors will need to be quite careful, and extremely nimble, after these recent parabolic advances,” Maley said.  “Sometimes, the deep corrections are long-lasting, like we saw after the dot-com bubble burst. Sometimes, they only last for a few weeks and are followed by new, very strong rallies that take  the stocks even higher.”
The tech rebound also pushed C3.ai Inc. off its session lows, with the AI software firm paring a plunge of 24% by almost half.
Salesforce Inc. fell after the software company gave a lackluster outlook for sales.
Nordstrom Inc. gained after the department-store chain’s quarterly revenue and profit came in slightly ahead of estimates.
Aside from the AI theme, traders also geared up for the monthly jobs report on Friday, with forecasters projecting a moderation in the pace of hiring that could potentially allow the Fed to pause its tightening policy in June.
Fed Bank of Philadelphia President Patrick Harker said “we should at least skip this meeting in terms of an increase.”
In an essay Thursday, his St. Louis counterpart James Bullard, said he believes interest rates are at the low end of what’s likely to be sufficiently restrictive to bring down inflation.
Meantime, the Treasury is considering postponing its regular three- and six-month bill auctions “tentatively” scheduled for next Monday if constraints around the statutory debt limit remain.
Senators scrambled Thursday to agree on a plan for swift consideration of the debt-limit deal forged by President Joe Biden and House Speaker Kevin McCarthy ahead of a June 5 deadline to avert a destabilizing default. 
Some of the main moves in markets:
Stocks
* The S&P 500 rose 1% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.3%
* The Dow Jones Industrial Average rose 0.5%
* The MSCI World index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.6%
* The euro rose 0.7% to $1.0762
* The British pound rose 0.7% to $1.2530
* The Japanese yen rose 0.4% to 138.82 per dollar
Cryptocurrencies
* Bitcoin fell 0.9% to $26,873.83
* Ether rose 0.2% to $1,869.82
Bonds
* The yield on 10-year Treasuries declined four basis points to 3.60%
* Germany’s 10-year yield declined three basis points to 2.25%
* Britain’s 10-year yield declined seven basis points to 4.12%
Commodities
* West Texas Intermediate crude rose 2.9% to $70.04 a barrel
* Gold futures rose 0.7% to $1,995.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Emily Graffeo, Vildana Hajric, Peyton Forte and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
Find something you’re passionate about keep tremendously interested in it. -Julia Child, 1912-2004.

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