October 18, 2023, Newsletter

Dear Friends,

Tangents:
October 18, 1877: Thomas Edison successfully demonstrates the incandescent light bulb for the first time.
October 18, 1892: The first long distance telephone line between Chicago and New York was opened. Go to article >>

Chuck Berry, b. 1926.
Martina Navratilova, b. 1956.

France set to take top winemaking spot.

‘World’s best’ bar for 2023 is revealed
Long dominated by New York and London cocktail establishments, the World’s 50 Best Bar Awards have found this year’s winner in a Spanish city.

Early Europeans thrived on seaweed, study reveals
Seaweed and aquatic plants were once a staple food for ancient Europeans, according to a new analysis of dental fossils.

This is the world’s new hottest chili pepper
Chili Pepper X has taken the spicy record as the world’s hottest, Guinness World Records announced this week.

Scrolls that were scorched when Mount Vesuvius erupted were finally read
Mount Vesuvius’ eruption in A.D. 79 carbonized hundreds of scrolls and papyri in the ancient Roman city of Herculaneum. Now, AI has decoded part of a scroll. Read More.

Orionid meteor shower peaks this weekend: How to get the best views
The Orionid meteor shower will peak this weekend. Here’s when to get the best view. Read More.

New ‘atlas’ of a monkey brain maps 4.2 million cells
Scientists have published a new atlas of a primate brain with single-cell resolution. Read More.

China is building the world’s largest underwater telescope to hunt for elusive ‘ghost particles’
China’s forthcoming Tropical Deep-sea Neutrino Telescope (TRIDENT) will search for the origins of cosmic rays in momentary flashes of light beneath the ocean’s surface. Read More.

PHOTOS OF THE DAY

San Francisco, US
Sea fog and sherbet-coloured skies made for a classic sunset scene at the Golden Gate Bridge, which joins San Francisco to Marin County
Photograph: Tayfun Coskun/Anadolu/Getty Images

Liverpool, UK
A moorhen makes a splash at Sefton Park, which covers more than 200 acres and features a boating lake and palm house
Photograph: Peter Byrne/PA

Hanam, South Korea
People enjoy time in a pink muhly grass field at a park in Hanam, South Korea. REUTERS/Kim Hong-Ji
Market Closes for October 18^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1937, the stock market crashed on rumors that the Roosevelt administration was planning a crackdown on Wall Street. The Dow Jones Industrial Average lost over 7%, a key dip in the middle of the Great Depression.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.2% at 19,450.70 in Toronto.
The move was the biggest since falling 1.9% on Oct. 2 and follows the previous session’s increase of 0.4%.
Today, financials stocks led the market lower, as 10 of 11 sectors lost; 177 of 227 shares fell, while 48 rose.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.6%.
Lithium Americas Corp. had the largest drop, falling 10.0%.
Insights
* In the past year, the index had a similar or greater loss 17 times. The next day, it declined 12 times for an average 0.5% and advanced five times for an average 1%
* This year, the index rose 0.3%, heading for the best year since 2021
* The index advanced 3.5% in the past 52 weeks. The MSCI AC Americas Index gained 15% in the same period
* The S&P/TSX Composite is 6.7% below its 52-week high on Feb. 2, 2023 and 5.1% above its low on Oct. 21, 2022
* The S&P/TSX Composite is down 1.1% in the past 5 days and fell 5.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.7 on a trailing basis and 13.9 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 14.25% compared with 14.05% in the previous session and the average of 13.73% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -107.1316| -1.8| 1/27
Industrials | -52.7532| -2.0| 2/24
Information Technology| -17.7144| -1.2| 3/8
Utilities | -15.7356| -2.0| 0/15
Communication Services| -13.9207| -1.9| 0/5
Consumer Staples | -10.6045| -1.2| 0/11
Real Estate | -9.2726| -2.0| 0/21
Consumer Discretionary| -8.5559| -1.2| 2/12
Materials | -6.0153| -0.3| 20/32
Health Care | -0.9973| -1.7| 1/3
Energy | 0.6073| 0.0| 19/19
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | -18.3400| -1.6|n/a | -10.7
TD Bank | -17.1900| -1.6|n/a | -8.3
Canadian National | -16.7800| -2.7|n/a | -10.2
Cenovus Energy | 2.4460| 0.9|n/a | 10.6
Barrick Gold | 3.3120| 1.2|n/a | -2.4
Suncor Energy | 4.1180| 1.0|n/a | 10.2
US
By Rita Nazareth
(Bloomberg) — A giant exchange-traded fund tracking the Nasdaq 100 (QQQ) advanced in late trading as Tesla Inc. rebounded, while Netflix Inc. rallied after earnings.
The gains signaled a recovery in mega caps, following a slide driven by geopolitical risks and higher Treasury yields.
The S&P 500 dropped 1.3% on Wednesday and oil rallied as Iran intensified its rhetoric against Israel after an explosion at a Gaza hospital that complicated diplomatic efforts to rein in the Middle East conflict.
Morgan Stanley sank the most since 2020 as profit fell on an investment-bank slowdown.
United Airlines Holdings Inc. tumbled almost 10% after warning the Israel-Hamas war and higher jet fuel costs would weigh on earnings.
“The risks of an escalation have risen on the back of the latest news reports regarding the hospital bombing,” said Jane Foley, head of foreign-exchange strategy at Rabobank. While there have been few signs of panic, “on any clear escalation, we can expect to see a ratcheting up of risk aversion,” she said.
Traders also sifted through Fed speak and the latest Beige Book for clues on the central bank’s next steps.
The outlook for the US economy is stable or may show softer expansion, the Federal Reserve said in its survey of regional business contacts.
Fed Bank of New York President John Williams said rates will have to stay at restrictive levels “for some time” to bring inflation back to the central bank’s target.
Meantime, Governor Christopher Waller noted policymakers can wait and gather more data before deciding if the economy needs further monetary restraint.
“We just don’t know how long inflation is going to remain elevated, which in turn raises question marks about the longevity of high interest rates,” said Fawad Razaqzada, market analyst at City Index and Forex.com. “Judging by recent data in the US, oil prices and Fed commentary, it can be a long time before the Fed starts cutting rates again.”
Fed Chair Jerome Powell is set to speak at the Economic Club of New York on Thursday.
There’s been a lot of investor anxiety on whether upside economic surprises could lead the Fed to tighten further, according to Krishna Guha at Evercore.
However, we think Powell will stick to the message delivered by Vice-Chair Philip Jefferson that the data has been strong, “but there has also been a big move in yields, which has tightened financial conditions,” Guha added. “So no urgency for a policy response in November and the Fed can adopt a wait-and-see approach.”

Corporate Highlights
* Procter & Gamble Co. reported sales and profit that surpassed analysts’ estimates as higher prices bolstered the business despite a lower volume of products sold.
* Nasdaq Inc. reported sales that beat expectations after the initial public offering market picked up last quarter.
* U.S. Bancorp said profit fell in the third quarter as the biggest US regional lender increased its provisions for credit losses.
* Interactive Brokers Group Inc. tempered its guidance for accounts growth.
* Ally Financial Inc. posted third-quarter profit that beat analyst estimates even as consumers struggled to make loan payments.
* ASML Holding NV orders plunged in the third quarter amid a sector-wide slump in the semiconductor industry that has left the company increasingly reliant on revenue from China.
* Abbott Laboratories narrowed its annual profit forecast as it beat estimates for quarterly results, citing growth in medical devices for heart disease and diabetes.
* Spirit AeroSystems Holdings Inc. restructured key supplier contracts with its biggest customer, Boeing Co., to stem the aircraft-parts maker’s deteriorating financial performance, speed production and improve build quality.

Key events this week:
* Australia unemployment, Thursday
* Japan trade, Thursday
* China property prices, Thursday
* US initial jobless claims, existing home sales, leading index,
Thursday
* Federal Reserve Chair Jerome Powell, Chicago Fed President
Austan Goolsbee, Atlanta Fed President Raphael Bostic,
Philadelphia Fed President Patrick Harker, Dallas Fed President
Lorie Logan speak at different events, Thursday
* Japan CPI, Friday
* China loan prime rates, Friday
* Philadelphia Fed President Patrick Harker speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.4%
* The Dow Jones Industrial Average fell 1%
* The MSCI World index fell 1.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.4% to $1.0535
* The British pound fell 0.4% to $1.2140
* The Japanese yen was little changed at 149.89 per dollar
Cryptocurrencies
* Bitcoin fell 0.8% to $28,244.17
* Ether was little changed at $1,561.69
Bonds
* The yield on 10-year Treasuries advanced eight basis points to 4.91%
* Germany’s 10-year yield advanced four basis points to 2.92%
* Britain’s 10-year yield advanced 15 basis points to 4.66%
Commodities
* West Texas Intermediate crude rose 1.7% to $88.16 a barrel
* Gold futures rose 1.4% to $1,963.50 an ounce
This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
Life’s blows cannot break a person whose spirit is warmed at the fire of enthusiasm. –Norman Vincent Peale, 1898-1993.

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