October 6, 2023, Newsletter

Dear Friends,

Tangents: Happy Friday.

October 6^th, 1973: Egypt and Syria launch a surprise attack on Israel, starting the  Yom Kippur War.

2nd-century Alexander the Great statue with lion’s-mane hairstyle unearthed in Turkey
The discovery shows the popularity of the ancient ruler hundreds of years after his death.  Read More.

700-year-old coin depicting Jesus and medieval king discovered in Bulgaria. Archaeologists in Bulgaria have discovered a medieval silver coin that features a Serbian king and a saint on one side and Jesus on the other.  Full Story: Live Science (10/4)

Earth’s solid inner core is ‘surprisingly soft’ thanks to hyperactive atoms jostling around
Atoms within the enormous ball of iron in Earth’s inner core may move around much more than previously thought, which could explain recent findings about the core’s surprising softness.  Read More.

James Webb Space Telescope spots dozens of physics-breaking rogue objects floating through space in pairs
Astronomers spotted Jupiter-mass binary objects (JUMBOs) in the Orion constellation, and they don’t know how the objects formed.  Read More.

US government issues 1st-ever space junk fine, charging satellite TV company whopping $150k
The FCC issued its first-ever fine for a space debris violation, slapping the DISH satellite TV company with a $150,000 penalty. Read More.

Ultra-exclusive private golf course opens in South Florida — with $1 million membership fee.
You can enjoy this world-class golf course, so long as you have a spare million dollars lying around.

Growing up in an Italian castle
This young woman’s family inherited a 900-year-old Italian castle. Here’s what it’s like living there.

Tom Brady’s last game jersey is headed to auction
The jersey Tom Brady wore in the last NFL game of his 23-season career is heading to auction, where it could fetch as much as $2.5 million.

PHOTOS OF THE DAY

New York City, US
People hold umbrellas as cars move along Brooklyn Bridge after heavy rains. Flash flooding swept over parts of the New York City region last week as residents reeled from powerful downpours and surging waters.  Photograph: Andrés Kudacki/AP

Reinfjord, Norway
A Sami woman feeds her son while watching their herd of reindeer in Reinfjord. A horde of white, brown or greying reindeer cross fjords, climb mountains and swim between glaciers before arriving at their destination, after a great migration to their winter pasture, in the Norwegian far north.  Photograph: Olivier Morin/AFP/Getty Images.

Scoresby Fjord, Greenland
Water flows from a melting iceberg in Scoresby Fjord. The French national centre for scientific research is undertaking an expedition to explore Greenland’s isolated fjords, the planet’s largest fjord system, which remains vastly understudied.  Photograph: Olivier Morin/AFP/Getty Images.
Market Closes for October 6^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1979, then-Fed Chair Paul Volcker set off the “Saturday Night Massacre” when he said the central bank would raise interest rates by a full percentage point amid spiraling inflation. The decision sparked a dramatic bond selloff.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.6%, or 108.26 to 19,246.07 in Toronto.
The move was the biggest since rising 0.8% on Sept. 28.
Shopify Inc. contributed the most to the index gain, increasing 2.5%.
Lithium Americas Argentina Corp. had the  largest increase, rising 7.0%.
Today, 176 of 228 shares rose, while 50 fell; 8 of 11 sectors were higher, led by energy stocks.
Insights
* This year, the index fell 0.7%, heading for the worst year since 2022
* So far this week, the index fell 1.5%
* The index advanced 1.4% in the past 52 weeks. The MSCI AC Americas Index gained 14% in the same period
* The S&P/TSX Composite is 7.7% below its 52-week high on Feb. 2, 2023 and 7.7% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.5 on a trailing basis and 13.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.04t
* 30-day price volatility rose to 14.32% compared with 14.23% in the previous session and the average of 12.96% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 28.7481| 0.8| 36/4
Materials | 27.5964| 1.3| 45/7
Financials | 23.4889| 0.4| 21/7
Information Technology | 22.2528| 1.5| 8/3
Industrials | 6.8727| 0.3| 20/6
Real Estate | 2.7424| 0.6| 18/2
Consumer Discretionary | 0.9231| 0.1| 11/3
Utilities | 0.7349| 0.1| 11/5
Health Care | -1.0433| -1.7| 0/4
Communication Services | -1.9356| -0.3| 2/3
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 14.7000| 2.5|n/a | 55.9
Canadian Natural Resources | 8.0890| 1.3|n/a | 11.7
Brookfield Corp | 6.5060| 1.6|n/a | -1.9
RBC | -1.6580| -0.2|n/a | -9.7
Bank of Nova Scotia| -2.3440| -0.5|n/a | -10.4
Restaurant Brands | -4.6250| -2.4|n/a | -1.7
US
By Emily Graffeo and Vildana Hajric
(Bloomberg) — US stock benchmarks rebounded after a tense week while the retreat in Treasuries extended as Wall Street debated the odds the Federal Reserve will raise interest rates again this year.
The S&P 500 advanced 1.2% Friday with the benchmark snapping its four-week losing streak after a last minute deal with the autoworkers union helped buoy sentiment.
The Nasdaq 100 jumped 1.7% with large-cap tech names, including Microsoft Corp., Apple Inc. and Nvidia Corp., powering the index higher.
Yields on 10-year and 30-year Treasuries calmed after touching 2007 highs near 4.9% and 5.1%, respectively as global bonds sold off for a fifth straight week.
An unexpected surge in hiring left swaps traders pricing in a roughly 50/50 chance of a rate hike by December.
The nonfarm payrolls report showed employers quickened the pace of hiring, with 336,000 jobs being added in September — more than double economists’ estimates.
The unemployment rate held steady at 3.8%, data from the Bureau of Labor Statistics showed Friday.
“The overall picture is rather ‘goldilocks’-like, with strong jobs growth coming alongside continued disinflation,” according to the economics desk at ABN Amro, which cautioned against relying too much on a single month’s data.  “We continue to think the fed funds rate has peaked and that July was the last hike of the cycle,” they added. “If anything, the recent jump in bond yields adds to our conviction that the Fed will refrain from further hikes, as the rise in yields represents a major additional tightening of financial conditions.”
Seema Shah, chief global strategist at Principal Asset Management, came to a different conclusion after the data. “The economy is almost too hot to handle and the Fed will need to respond with more rate hikes, it reinforces the higher-for-longer narrative that has been spooking bond markets for the past few weeks,” she said.
The bond selloff has been hammering risk assets from stocks to corporate credit on concerns that central banks will keep interest rates elevated longer than expected.
Mohamed El-Erian, the chief economic adviser at Allianz SE, sees more pain ahead.
“Something is likely to break,” he said on Bloomberg Television.
The Bloomberg Opinion columnist said Friday’s job numbers were consistent with his call for a possible recession.
Markets gyrated on conflicting US labor data this week: job-openings overshot estimates, while a measure of private employment from ADP was weaker than forecast.
Traders bet big on volatility ahead of Friday’s payrolls number, though the wager hasn’t really paid off yet.
They also have record sums riding on the outcome of November’s Fed meeting as investors and policymakers debate the likelihood of a further rate increase this year.
In commodities, oil posted its biggest weekly drop since March while gold slumped for the second week in a row.
Next week, all eyes will be on Thursday’s consumer pricing data as well as earnings reports from some of Wall Street’s biggest banks, including JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.7%
* The Dow Jones Industrial Average rose 0.9%
* The MSCI World index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.4% to $1.0589
* The British pound rose 0.4% to $1.2242
* The Japanese yen fell 0.6% to 149.33 per dollar
Cryptocurrencies
* Bitcoin rose 1.8% to $27,977
* Ether rose 1.9% to $1,647.22
Bonds
* The yield on 10-year Treasuries advanced eight basis points to 4.79%
* Germany’s 10-year yield was little changed at 2.88%
* Britain’s 10-year yield advanced three basis points to 4.57%
Commodities
* West Texas Intermediate crude rose 0.6% to $82.80 a barrel
* Gold futures rose 0.7% to $1,844.30 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cecile Gutscher, Carter Johnson, Sagarika Jaisinghani, Richard Henderson and John Viljoen.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann
The enemy is fear.  We think it is hate; but it is fear. Gandhi-1869-1948.

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