September 7, 2023 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

September 7^th, 1783: The Treaty of Paris is signed, officially ending the American Revolution.
On Sept. 7, 1940, the German air force began its blitz on London during World War II.  Go to article >>
1822: Brazil Independence Day.
1914: Opening of NY Post Office.

Buddy Holly, b. 1936
Queen Elizabeth I, b. 1533.
Grandma Moses, painter,b.1533.
Chrissie Hynde, singer/songwriter, b. 1956.

America’s best fall foliage road trips: You can expect to see an array of warm colors along these scenic road trip routes. Add a pitstop for pumpkin spice lattes for the ultimate fall experience.

Tom Brady has a new job at Delta Airlines:  Riddle time. Question: What does Tom Brady have in common with an airplane? Answer: They both make touchdowns.

A ‘Super Models’ docuseries is in the works: Four of the women who inspired the term “supermodel” are getting some majorly overdue recognition in a new docuseries streaming later this month.

Freddie Mercury’s ‘Bohemian Rhapsody’ piano sells for $2.2 million:  This Yamaha piano was among dozens of items to go under the hammer in an auction dedicated to the Queen frontman’s personal possessions.

Centuries-old technique reveals hidden ‘3D’ animals in Paleolithic cave art.  The hidden animals were revealed on cave walls in Spain with ‘Magic Eye’-style techniques.  Full Story: Live Science (9/6)

Bronze Age girl buried with more than 150 animal ankle bones, potentially to help her to the next world
Archaeologists in Kazakhstan have unearthed a burial mound of a Bronze Age girl surrounded by a variety of grave goods. Read More.

Tropical Storm Lee could become an ‘extremely dangerous major hurricane’ by this weekend
Forecasters are keeping an eye on Tropical Storm Lee, which they predict could soon become a full-blown hurricane in the Atlantic Ocean. Read More.

PHOTOS OF THE DAY

Dover, UK
Lorries queue to reach the port of Dover along the A20 in Kent amid heightened security checks to track down escaped terrorism suspect Daniel Abed Khalife
Photograph: Gareth Fuller/PA

Paris, France
A specially commissioned artwork created by Vincent Mcindoe, titled Wear la Rose, is unveiled at the Arc de Triomphe for O2’s latest England Rugby campaign before the start of the World Cup.  Photograph: Kieran Cleeves/PA

​​​​​​​New York, US
British Airways flight 189 from London, Heathrow, a Boeing 787 Dreamliner, passes in front of the setting sun on approach to Newark Liberty airport, as seen from the 86th floor of the Empire State Building.  Photograph: Gary Hershorn/Getty Images
Market Closes for September 7^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 2008, Treasury Secretary Henry Paulson announced the government’s biggest market intervention in years, a plan to take control of housing finance giants Fannie Mae and Freddie Mac. The Treasury pledged as much as $200 billion to the companies as they coped with heavy losses on mortgage defaults.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 0.5%, or 94.88 to 20,132.08 in Toronto.
The index dropped to the lowest closing level since Aug. 28.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 1.2%. BlackBerry Ltd. had the largest drop, falling 16.3%.
Today, 146 of 226 shares fell, while 75 rose; 8 of 11 sectors were lower, led by financials stocks.
Insights
* This year, the index rose 3.9%, heading for the best year since 2021
* This quarter, the index was little changed
* So far this week, the index fell 2%
* The index advanced 4.6% in the past 52 weeks. The MSCI AC Americas Index gained 11% in the same period
* The S&P/TSX Composite is 3.4% below its 52-week high on Feb. 2, 2023 and 12.6% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 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 15.2 on a trailing basis and 14.4 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$3.2t
* 30-day price volatility rose to 12.32% compared with 12.26% in the previous session and the average of 11.13% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -36.4622| -0.6| 8/20
Materials | -17.5878| -0.7| 10/40
Information Technology | -14.3866| -0.9| 5/6
Consumer Staples | -13.7565| -1.6| 2/9
Industrials | -12.9591| -0.5| 6/19
Communication Services | -6.2297| -0.8| 1/4
Consumer Discretionary | -5.6153| -0.8| 3/11
Real Estate | -0.1674| 0.0| 10/10
Health Care | 0.1541| 0.2| 1/2
Energy | 2.3720| 0.1| 16/22
Utilities | 9.7686| 1.2| 13/3
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
TD Bank | -12.4400| -1.2| 72.9| -7.9
Shopify | -9.7450| -1.3| 81.2| 88.6
RBC | -9.1550| -0.8| -9.7| -5.5
Brookfield Infrastructure | 2.9550| 2.2| 33.5| 3.2
Fortis | 3.0540| 1.7| -17.3| -1.6
Waste Connections | 4.1670| 1.2| 51.6| 5.8
US
By Rita Nazareth
(Bloomberg) — Stocks came off session lows as blue chips gained traction amid concern over how a Chinese ban on Apple Inc.’s iPhone could impact big tech, the industry that has driven this year’s market rally.
The S&P 500 trimmed losses by more than half, led by an advance in defensive groups.
The Dow Jones Industrial Average finished higher.
The Nasdaq 100 underperformed as Apple slid  about 6.5% in two days, wiping out $190 billion in value.
The company’s suppliers such as Qualcomm Inc. and several mega-caps like Nvidia Corp. also got hit.
Apple breached the key 100-day moving average, which is seen as a bearish signal by some technical analysts.
Amid the risk-off push, the Russell 2000 of small caps also finished below that technical threshold.
“We expect market choppiness to persist near term,” said Keith Lerner, co-chief investment officer at Truist Advisory Services. “September, like August, has tended to be a more challenging month, and there remains a dearth of obvious near-term upside catalysts as stocks continue to digest the big year-to-date gains.”
Tech shares have soared in 2023 amid the artificial intelligence frenzy and speculation that the Federal Reserve is getting closer to wrapping up its interest-rate hikes.
The nearly 40% run-up in the Nasdaq 100 suggests that valuations look stretched, according to some metrics, with the industry ripe for a correction.
Active managers’ holdings last month skewed defensive, according to data compiled by Bank of America Corp.
Hedge funds and active long-only funds have upped their exposure to utilities stocks relative to historical averages.
Active equity exposure to “high beta stocks remains well below average,” the BofA strategists said.
Traders also kept a close eye on the latest economic data, with solid jobless claims figures reinforcing the case for the Fed to keep rates elevated.
After climbing in the immediate aftermath of the report, two-year US yields fell below 5%.
The dollar saw a small gain after hitting an almost six-month high earlier this week.
“A solid round of employment data that reinforces the perception that the jobs market will remain resilient for the time being,” said Ian Lyngen at BMO Capital Markets. “From here, the market will remain wary of corporate-hedging related flows as they have been the biggest driver of price action in US rates thus far in September.”
Fed Bank of New York President John Williams said US monetary policy is “in a good place,” but officials will need to parse through data to decide on how to proceed on interest rates.
He spoke during a moderated discussion with Bloomberg’s Michael McKee in New York.
Separately on Thursday, Chicago Fed President Austan Goolsbee told the Marketplace radio program: “We are very rapidly approaching the time when our argument is not going to be about how high should the rates go.”
The euro retreated as the region barely grew in the second quarter.
The onshore yuan slipped to a 16-year low, as pessimism grew toward China’s economy.
Emerging-market currencies came within a whisker of erasing all of this year’s gains.
Oil dropped after a nine-session rally propelled futures into overbought territory. 
Corporate Highlights
* Boeing Co. fell after warning that deliveries of its cash-cow 737 jetliner will come in at the low end of its targeted range this year as a recently discovered supplier glitch crimps output.
* General Motors Co. made a counteroffer to the United Auto Workers union, proposing a total 16% pay raise for the top wage earners in its plants and a 56% hike for newer employees who make less. UAW President Shawn Fain reacted quickly saying the proposal is “insulting.”
** Ford Motor Co. said it raised the pay of 8,000 US hourly workers represented by the United Auto Workers union just a week before its union contract expires.
* Dell Technologies Inc. dropped after Barclays Plc downgraded the personal-computer company to underweight.
* C3.ai Inc. sank after giving a lackluster sales forecast and said profitability will take longer than expected, fueling anxiety the software company is struggling to capitalize on
enthusiasm for artificial intelligence.
* BlackBerry Ltd. slid after the company cut its second-quarter revenue guidance to below the average of analyst estimates.
* Walmart Inc. rose on news the company has lowered its starting pay for some new hires as part of a revamped wage structure that took effect in July.
* McDonald’s Corp. rose after Wells Fargo upgraded the fast-food chain to overweight, expecting the company to “stand tall” as quick-service restaurant trends slow.
Key events this week:
* Japan GDP, Friday
* Germany CPI, Friday
* US wholesale inventories, consumer credit, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.7%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index fell 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.3% to $1.0697
* The British pound fell 0.3% to $1.2473
* The Japanese yen rose 0.3% to 147.20 per dollar
Cryptocurrencies
* Bitcoin rose 0.8% to $25,878
* Ether rose 0.6% to $1,637.17
Bonds
* The yield on 10-year Treasuries declined three basis points to 4.25%
* Germany’s 10-year yield declined four basis points to 2.61%
* Britain’s 10-year yield declined eight basis points to 4.45%
Commodities
* West Texas Intermediate crude fell 0.6% to $87 a barrel
* Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As always,

Carolann
We generate fears when we sit.  We overcome them by action. –Dr. Henry Link, 1889-1952.

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