June 21, 2024, Newsletter

Dear Friends,

Tangents: Happy Friday.  Full moon tonight.

June 21, 1982: John Hinckley Jr. was found innocent by reason of insanity in the shootings of President Ronald Reagan and three others.  Go to article >>
June 21,2009: Greenland assumes self-rule.  The island had been administered by Denmark (earlier Denmark-Norway) for centuries.

Jean-Paul Sartre, existentialist, b.1905.

Giant river system that existed 40 million years ago discovered deep below Antarctic ice
“There was this gigantic river system”: Researchers find ancient lost world deep beneath Antarctic ice. Read More.

Supermassive black hole roars to life before astronomers’ eyes in world-1st observations
Astronomers may be watching a supermassive black hole “waking up” from a long slumber for the first time ever. The researchers think the black hole may have gotten its hands on a glut of new material to devour, causing an uptick in brightness. Read More.

Newfound dinosaur with giant, horned headpiece named after iconic Norse god
A newly identified dinosaur with large, ornate horns on its massive head shield has been named after a famous Norse god who sported a similar headpiece in recent Marvel movies. Read More.

‘Immortal’ stars at the Milky Way’s center may have found an endless energy source, study suggests
Strange stars clustered near the Milky Way’s center are much younger than theory predicts is possible. New research suggests their youth could actually be eternal — and fueled by annihilating dark matte. Read More.

This AI-powered robot has worked out how to solve a Rubik’s Cube in just 0.305 seconds
Footage shows the record-breaking TOKUFASTbot solving a Rubik’s Cube so fast that it appears to happen in a single move. Read More.

Dramatic video captures smash-and-grab jewelry robbery
Nearly $2 million in jewelry was stolen in a California heist. See the shocking video of around 20 suspects breaking into display cases.

Bugatti’s new car is $4 million
The ultra-rich are eyeing a new Bugatti hybrid with 1,800 horsepower. Here’s why it has an astronomical price tag.

PHOTOS OF THE DAY

A mute swan is reflected in the waters of Tice’s Meadow Nature Reserve, Surrey, UK
Photograph: Jon Hawkins/Mediadrumimages

Stonehenge, UK
People watch the sun rise as they take part in the summer solstice in Wiltshire
Photograph: Andrew Matthews/PA

Niterói, Brazil
A humpback whale (Megaptera novaeangliae) jumps off the coast in Rio de Janeiro state
Photograph: Mauro Pimentel/AFP/Getty Images
Market Closes for June 21^st, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1970: The Penn Central, one of the world’s largest and oldest railroad operators, declared bankruptcy when the government refused to guarantee $200 million in emergency loans.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.1% at 21,554.86 in Toronto.
The move follows the previous session’s increase of 0.3%.
Canadian Natural Resources Ltd. contributed the most to the index decline, decreasing 1.4%.
Ballard Power Systems Inc. had the largest drop, falling 6.0%.
Today, 149 of 222 shares fell, while 70 rose; 6 of 11 sectors were lower, led by materials stocks.
Insights
* This quarter, the index fell 2.8%
* This month, the index fell 3.2%, heading for the biggest decline since October 2023
* So far this week, the index fell 0.4%
* The index advanced 9.4% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is 4.4% below its 52-week high on May 21, 2024 and 15.3% above its low on Oct. 27, 2023
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.3 on a trailing basis and 14.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.42t
* 30-day price volatility fell to 10.15% compared with 10.16% in the previous session and the average of 10.18% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -34.8803| -1.3| 7/42
Energy | -33.4109| -0.9| 5/35
Real Estate | -1.8161| -0.4| 4/16
Communication Services | -1.0265| -0.2| 2/3
Utilities | -0.6259| -0.1| 8/7
Health Care | -0.1078| -0.2| 1/3
Industrials | 0.3473| 0.0| 10/16
Consumer Discretionary | 3.3146| 0.4| 4/9
Consumer Staples | 6.7322| 0.7| 6/4
Financials | 9.9114| 0.2| 15/12
Information Technology | 25.0932| 1.4| 8/2
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Canadian Natural Resources | -10.2200| -1.4| 55.5| 8.7
Barrick Gold | -6.5180| -2.3| 294.3| -5.3
Suncor Energy | -5.6950| -1.2| 38.3| 18.3
Couche-Tard | 5.2710| 1.3| 407.8| 0.0
Constellation Software | 8.8710| 1.7| 461.9| 16.0
Shopify | 13.8800| 1.9| 445.2| -13.7
US
By Rita Nazareth
(Bloomberg) — Wall Street’s massive expiration of options not only left stock traders more cautious, it also drove one of the leaders of the bull market to a roller-coaster ride.
Volume soared at the close of trading.
It was estimated that $5.5 trillion expired during the quarterly event ominously known as “triple witching” in which derivatives contracts tied to equities, index options and futures mature.
Nearly 18 billion shares changed hands on US exchanges Friday.
That’s over 55% above the three-month average.
This time around, Nvidia Corp. played an added role.
The value of contracts tied to the chipmaker due Friday was the second-largest of any underlying asset, lagging only the S&P 500.
And the expiration coincided with index rebalancing by S&P Dow Jones Indices.
To Steve Sosnick at Interactive Brokers, the “key” rebalance was set to occur in the Technology Select Sector Index — which is the benchmark for the roughly $80 billion XLK exchange-traded fund.
“Nvidia’s index weight will rise dramatically, mostly at the expense of Apple’s,” he noted. “Considering the outsized importance of mega-cap tech overall — and Nvidia in particular — upon broad market indices, it is not unreasonable for traders to be wary about outsized movements late in the day.”
As the contracts disappear, investors adjust their positions, adding a burst of volume capable of swinging individual holdings.
The S&P 500 edged lower to around 5,465.
Nvidia almost erased a plunge of about 5% before pushing lower again.
It erased over $220 billion in value in two days.
Apple Inc. also fell.
Treasury 10-year yields were little changed at 4.25%.
France’s risk premium over Germany closed at the highest since 2012.
The artificial-intelligence frenzy that briefly made Nvidia the world’s most-valuable company this week also drove record inflows into tech funds, said Bank of America Corp. strategists.
About $8.7 billion flowed into tech funds in the week through June 19, according to a note from the bank citing EPFR Global data.
“The ‘all roads lead to Nvidia’ trade is once again bolstered” as Europe falters amid the political turmoil in France, strategist Michael Hartnett said. Still, while investors still feel they need more exposure to AI-related plays, “all asset allocators are concerned about the equity concentration risk.”
Keith Lerner at Truist Advisory Services says the firm is downgrading the technology sector to “neutral” after the industry largely outperformed the S&P 500 since their“overweight” call in November.
“Although we still have a favorable long-term view of technology, on a shorter-term basis the sector appears extended, and we would not be chasing the sector,” Lerner noted. “That said, the sector appears far from ‘bubble’ territory, and we believe secular tailwinds will persist around artificial intelligence.”
Friday’s options event came at a critical juncture for markets positioning for the second half of 2024 and the Federal Reserve’s next steps.
Data showed US services activity picked up early this month to the fastest pace in more than two years.
Separately, sales of existing homes fell for a third straight month.
“Investors should brace for drama,” said Solita Marcelli at UBS Global Wealth Management. “The second half of 2024 is shaping up to be a time of transition and volatility.
The decisions that investors make now will be key to navigating this period effectively.”
John Stoltzfus at Oppenheimer Asset Management says he remains positive in the outlook for stocks as prospects for improved fundamentals this year show potential to be realized.
“That said, history shows us that stocks and other asset class prices don’t go up in a straight line but rather tend to climb the proverbial ‘wall of worry,’ requiring prudent diversification, patience, and a sense of one’s tolerance to risk and fluctuation for private investors and discipline tied to an institution’s mandate for professional investors,” he noted.

Corporate Highlights:
* Apple Inc. is withholding a raft of new technologies from hundreds of millions of consumers in the European Union, citing concerns posed by the bloc’s regulatory attempts to rein in Big Tech.
* AMC Entertainment Holdings Inc. is holding confidential talks with some of its lenders about lowering its debt load and extending near-term maturities, according to people with knowledge of the matter.
* Airbus SE is edging closer to an agreement with Spirit AeroSystems Holdings Inc. to take over parts of the aerospace supplier’s business, paving the way for an acquisition of the bulk of the company by arch-rival Boeing Co. as early as next week.
* American Airlines Group Inc. is suspending training for new pilots through the end of this year, the latest pullback by a major US carrier in the face of uneven travel demand and delayed aircraft.
* A top US Food and Drug Administration official overrode reviewers to give broad approval to Sarepta Therapeutics Inc.’s gene therapy for a rare muscle disease in children, despite a lack of data showing it actually slows overall progression of the disease.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% 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 0.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0692
* The British pound was little changed at $1.2649
* The Japanese yen fell 0.4% to 159.58 per dollar
Cryptocurrencies
* Bitcoin fell 1.2% to $64,301.01
* Ether rose 0.4% to $3,538.53
Bonds
* The yield on 10-year Treasuries was little changed at 4.25%
* Germany’s 10-year yield declined two basis points to 2.41%
* Britain’s 10-year yield advanced three basis points to 4.08%
Commodities
* West Texas Intermediate crude fell 0.8% to $80.63 a barrel
* Spot gold fell 1.6% to $2,322.32 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Carly Wanna, Sagarika Jaisinghani, Cecile Gutscher, Divya Patil, Matthew Burgess and Winnie Hsu.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann
Success comes to those who can recognize and correctly value risk. –Sidney Weinberg, 1891-1969.

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