July 21, 2023, Newsletter

Dear Friends,

Tangents: Happy Friday.
July 21, 1937: Amelia Earhart, pioneering aviator, goes missing during her attempt to circumnavigate the globe, sparking an enduring mystery in the  history of aviation.
July 21, 1861: Battle of Bull Run
2002: Telecommunications giant WorldCom Inc. filed for bankruptcy protection after disclosing it had inflated profits by nearly $4 billion through deceptive accounting.  Go to article >>

Ernest Hemingway, writer, b. 1899.
Marshall McLuhan, writer, b.1911
Isaac Stern, musician, b. 1920

Philippines makes historic debut at the World Cup. The Southeast Asian country made its first-ever appearance at the Women’s World Cup today. View live scores from the tournament here

Ultrabright stellar object is shining beyond the ‘death line,’ and no one can explain it
A slowly rotating object 15,000 light-years from Earth defies every logical explanation that astronomers have thrown at it. Read More

Watch as crater collapses in Iceland’s new volcano, spewing rivers of lava
Iceland’s newest volcano, located in the Reykjanes peninsula, is throwing “spatter bombs” of molten lava. Read More

Woman who died in deadly Vasa warship’s wreck 400 years ago reconstructed in lifelike detail
Researchers initially thought the 17th-century shipwreck skeleton was male, but a new reconstruction reveals “G” as female. Read More

RIP TONY BENNETT
PHOTOS OF THE DAY

Ankara, Turkey: A butterfly lands on lavender in a garden before the harvesting season.  Photograph: Anadolu Agency/Getty Images

Yangzhou, China: An aerial view shows tourists taking a boat ride through an aquatic forest at Luyang Lake wetland park.  Photograph: VCG/Getty Images

A peacock butterfly (Inachis io) competes with a bumblebee to feed on pollen on an echinacea daisy in Windsor, England. The charity Butterfly Conservation is calling on people across the UK to take part in this year’s Big Butterfly Count, which runs until 6 August, to help scientists understand the impact of climate change on butterflies.  Photograph: Maureen McLean/Shutterstock
Market Closes for July 21^st, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1933, as Wall Street began to digest the implications of President Franklin D. Roosevelt’s “New Deal,” the Dow Jones Industrial Average suffered its ninth-worst daily percentage loss, dropping 7.8% (or 7.55 points) to close the day at a dismal 88.71.   (It’s 35,312.11 right now, lest you need any reminder of the enormous wealth creation $$$ attainable by investing in solid blue chip stocks for the long term. -cs)
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.5% at 20,547.51 in Toronto.
The index advanced to the highest closing level since May 9 after the previous session’s decrease of 0.3%.
Canadian Pacific Kansas City Ltd. contributed the most to the index gain, increasing 1.4%.
Mullen Group Ltd. had the largest increase, rising 6.0%.
Today, 139 of 228 shares rose, while 82 fell; all sectors were higher, led by energy stocks.
Insights
* This month, the index rose 1.9%
* So far this week, the index rose 1.4%
* The index advanced 7.8% in the past 52 weeks. The MSCI AC Americas Index gained 13% in the same period
* The S&P/TSX Composite is 1.4% below its 52-week high on Feb. 2, 2023 and 15% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.4 on a trailing basis and 14.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.23t
* 30-day price volatility rose to 10.04% compared with 10.01% in the previous session and the average of 10.93% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 29.6363| 0.9| 23/15
Financials | 29.2853| 0.5| 20/8
Industrials | 23.0811| 0.8| 17/9
Communication Services | 9.4279| 1.2| 5/0
Consumer Staples | 7.3316| 0.9| 10/1
Materials | 3.9347| 0.2| 20/26
Consumer Discretionary | 3.6317| 0.5| 9/6
Utilities | 2.2265| 0.2| 11/5
Real Estate | 1.3473| 0.3| 15/6
Health Care | 0.7148| 1.2| 4/0
Information Technology | 0.0334| 0.0| 5/6
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Canadian Pacific
Kansas | 9.9630| 1.4| 15.2| 6.6
Canadian National | 7.0900| 1.1| -13.2| -2.6
TD Bank | 6.5310| 0.6| -15.8| -1.6
Bank of Montreal | -1.2970| -0.2| 262.9| 0.6
First Quantum Minerals | -2.0400| -1.5| -51.6| 23.2
CGI Inc | -6.8450| -3.4| 101.6| 15.5
US
By Jennifer Bissell-Linsk and John Viljoen
(Bloomberg) — Technology stocks continued a selloff on Friday as investors looked to earnings in the week ahead after a disappointing batch of results earlier this week.
The Nasdaq 100 shed 0.3%, deepening losses from Thursday when technology groups fell on the backs of lower-than-expected sales at Netflix Inc. and an adjusted earnings miss at Tesla Inc.
The yield on the 10-year note fell one basis point, bringing weekly gains to less than a point.
American Express Co. fell 3.5% after missing revenue forecasts.
The yen tumbled on speculation the Bank of Japan won’t make changes to its yield curve control program.
Meanwhile, Alphabet Inc. and Exxon Mobil Corp. gained while Meta Platforms Inc. fell ahead of the groups’ earnings expected next week.
“Next week we may need to see strength across line items and guidance lifts to maintain index-level momentum,” Citi’s Scott T Chronert wrote in a note. “NFLX and TSLA both beat on the bottom line this week, yet fell 8.4% and 9.7%, respectively, day over day. This may be telling as to how high the bar really is to support current valuations.”

Investors had been braced for a volatile session on Friday as a flood of options expired before an out-of-cycle rebalancing in the Nasdaq 100.
The index shuffle, which takes effect on Monday, is designed to reduce the dominance of mega-caps and boost the presence of smaller members.
In equities, the main focus continues to be whether the rally in a handful of mega-cap stocks and hype over artificial intelligence has staying power.
The S&P 500 has already surpassed most estimates for where it would end the year, confounding strategists convinced that 2023 would be another bad year for markets heading into recession.
“So where we are right now, we are resting after the massive move over the course of many weeks,” Ken Mahoney, CEO of Mahoney Asset Management, wrote in a note. “A lot of stocks were creating and still are creating bases to break out higher from.  No one could believe their eyes after being so conditioned to 2022’s nasty selling conditions when this market gained steam again.”

In commodities, wheat futures fell as much as 3.6% as Ukraine made preparations to continue a grain-export deal, which Russia exited this week.
Oil notched its fourth weekly gain amid tentative signs that global markets are tightening.
And gold slipped against a stronger dollar on Friday, paring gains made earlier in the week. 
Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 fell 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro was little changed at $1.1126
* The British pound was little changed at $1.2857
* The Japanese yen fell 1.2% to 141.76 per dollar
Cryptocurrencies
* Bitcoin rose 0.5% to $29,873.36
* Ether rose 0.3% to $1,893.84
Bonds
* The yield on 10-year Treasuries declined one basis point to 3.84%
* Germany’s 10-year yield declined two basis points to 2.47%
* Britain’s 10-year yield was little changed at 4.28%
Commodities
* West Texas Intermediate crude rose 1.7% to $76.90 a barrel
* Gold futures fell 0.3% to $2,003.20 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Lu Wang and Krystof Chamonikolas.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann
The one unchangeable certainty is that nothing is unchangeable of certain. –John Fitzgerald Kennedy, 1917-1963.

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