August 22, Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
August 22, 1851: The first America’s Cup was won by the American yacht “America” in  a race around the Isle of Wight.

August 22: In 1989, Black Panthers co-founder Huey P. Newton was shot dead

August 22, 2005 The last Jewish settlers left the Gaza Strip, ending decades of Israel’s turbulent occupation. Go to article >>

Pink to perform at DNC today
The global pop icon has been tapped for a closing night performance at the Democratic National Convention.

Tourists scaling the Great Wall of China can get food delivered by drone
Hungry tourists hiking on the Great Wall of China can now get their lunch delivered — from the air.

Grand Stade Hassan II: Design revealed for one of the world’s largest stadiums ahead of 2030 World Cup
The 115,000-capacity soccer stadium in Morocco will have a big role to play in the 2030 FIFA World Cup.

Starbucks brings back Pumpkin Spice Latte earlier than ever
The wait is over — what a sweet re-leaf. Beginning today, Starbucks’ beloved “PSL” returns to US menus with other fall-themed drinks and snacks.

1,000-year-old remains of ‘elite woman’ in silk cloak found in abandoned fortress in Mongolia
The burial site was hidden inside an abandoned fortress in Mongolia and contained the remains of a prestigious woman. Read More.

‘Stunning’ Bronze Age burial chamber discovered on the English moor
The stone-lined tomb could provide an unprecedented look at life in Bronze Age England. Read More.

See the moment the blue supermoon ‘gobbled up’ Saturn in epic astrophotography image
Overnight on Aug. 20-21, the full ‘Sturgeon Supermoon’ briefly occulted, or passed in front of, Saturn, snuffing the ringed planet’s light from the sky. An epic new astrophotography image captures the entire spectacle from start to finish. Read More.

Heaviest antimatter particle ever discovered could hold secrets to our universe’s origins
The newly found antiparticle, called antihyperhydrogen-4, could have a potential imbalance with its matter counterpart that may help scientists understand how our universe came to be. Read More.
PHOTOS OF THE DAY

Çanakkale, Turkey
Kalpli Göl (heart-shaped lake) located near the village of Dalyan. The phytoplankton Dunaliella salina gives the lake its unique pink colour
Photograph: Anadolu/Getty Images

Berlin, Germany
A young giraffe named Emily interacts with her mother in their enclosure during a name-giving event at the Tierpark zoo
Photograph: Ralf Hirschberger/AFP/Getty Images

​​​​​​​Taipei, Taiwan
Taipei Performing Arts Center, designed by architects Rem Koolhaas and David Gianotten
Photograph: Sam Yeh/AFP/Getty Images
Market Closes for August 22^nd, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1787, John Fitch launched the first successful steamboat run in U.S. waters, on the Delaware River. He never got costs under control so Robert Fulton is remembered as the father of the steamboat.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.4% at 23,037.47 in Toronto.
The move was the biggest loss since Aug. 7 and follows the previous session’s increase of 0.4%.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 2.1%.
Denison Mines Corp. had the largest drop, falling 5.6%.
Today, 141 of 226 shares fell, while 79 rose; 8 of 11 sectors were lower, led by materials stocks.
Insights
* This month, the index fell 0.3%
* So far this week, the index was little changed
* The index advanced 17% in the past 52 weeks. The MSCI AC Americas Index gained 26% in the same period
* The S&P/TSX Composite is 0.7% below its 52-week high on July 31, 2024 and 23.2% above its low on Oct. 27, 2023
* The S&P/TSX Composite is little changed in the past 5 days and rose 0.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.6 on a trailing basis and 15.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.67t
* 30-day price volatility fell to 13.98% compared with 14.11% in the previous session and the average of 12.97% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -47.3907| -1.6| 3/48
Information Technology | -32.3560| -1.6| 0/10
Financials | -7.9056| -0.1| 15/11
Consumer Staples | -6.4362| -0.7| 5/6
Consumer Discretionary | -4.6308| -0.6| 3/10
Utilities | -0.6897| -0.1| 8/7
Health Care | -0.2795| -0.4| 1/3
Communication Services | -0.0216| 0.0| 3/2
Real Estate | 1.2961| 0.3| 10/9
Energy | 6.0139| 0.1| 17/21
Industrials | 8.1385| 0.3| 14/14
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
TD Bank | -21.0500| -2.1| 58.3| -7.0
Shopify | -20.0300| -2.3| -53.2| -1.9
Couche-Tard | -7.6710| -1.9| 13.7| 1.1
TC Energy | 3.6250| 0.8| 31.9| 16.9
Canadian Pacific Kansas | 5.9310| 0.8| -33.9| 4.4
RBC | 7.3150| 0.5| -30.8| 15.1
US
By Rita Nazareth
(Bloomberg) — Bond yields climbed and stocks struggled, with traders betting Jerome Powell will throw cold water on market expectations for aggressive interest-rate cuts this year.
In the run-up to Powell’s speech in Jackson Hole, Treasuries tumbled, with the move led by shorter maturities.
The dollar gained.
The S&P 500 lost steam after getting close to its all-time high.
Tech mega caps sold off.
The swap market has cemented wagers the Federal Reserve will ease policy by one percentage point this year, starting in September with the likelihood of a 25- or even 50-basis-point cut.
“Will Powell allude to a slow walk down the monetary policy stairs or a speedy elevator ride down to the basement?” said Jose Torres at Interactive Brokers. “Powell is likely to choose the stairwell rather than the elevator.”
Wall Street traders waded through a raft of remarks from US policymakers, with Fed Bank of Kansas City President Jeffrey Schmid saying he wants to see more data before supporting cuts.
His Boston counterpart Susan Collins says “a gradual, methodical pace” is likely to be appropriate.
Her comments were echoed by Philadelphia Fed President Patrick Harker in a CNBC interview.
“The script is clear — the Fed is going to ease in September, but no one is portraying a desire to ease 50 basis points at this time,” said Andrew Brenner at NatAlliance Securities.
Traders are overplaying the prospects of an aggressive series of Fed cuts before the end of the year, according to Mohamed El-Erian.
“It is problematic in my mind that the market is pricing in so many rate cuts right now,” El-Erian, the president of Queens’ College, Cambridge, told Bloomberg Television on Thursday. “The market is overdoing it.”
Treasury 10-year yields advanced six basis points to 3.86%.
The S&P 500 dropped 0.9%.
The Nasdaq 100 fell 1.7%, with Nvidia Corp. leading losses in big tech.
Intel Corp. tumbled 6.1%.
Banks climbed and energy shares joined oil higher.
Peloton Interactive Inc. surged 35% after the fitness company reported earnings that beat estimates.
“We are now once again not debating if they will cut, but by how much they will cut and how many times they will cut before year end,” said Kenny Polcari at SlateStone Wealth. “I am in the 25 basis-point and three-times camp. The US economy is
not circling the drain – so there is no need to suggest that it is.”
Chris Senyek at Wolfe Research says his sense is that Powell will signal an easing cycle starting in September.
However, contrary to what the market is pricing in for the remainder of 2024, he doesn’t believe the Fed Chair will signal a cut larger than 25 basis points.
Sam Stovall at CFRA also bets the next Fed-easing cycle will be initiated in a “more measured fashion” with a 25 basis-point cut.
“This ‘slower to lower’ approach will likely be intended to signal that the Fed is not behind the curve, but will allow it to ensure that the embers of inflation have been fully extinguished before concluding that its mission has been completed,” he noted.
On the economic front, the latest figures were more of a “mixed bag.” Data showed jobless claims data showed the labor market is cooling only gradually — rather than rapidly slowing.
US manufacturing activity shrank at the fastest pace this year on further weakness in production, orders and factory employment. And existing-home sales increased for the first time in five months.
“The US economy overall has, thus far, been robust enough to take an extended Fed rate pause,” said Don Rissmiller at Strategas. “But there’s a clear case for rate cuts soon.”

Corporate Highlights:
* Snowflake Inc. gave a sales outlook that failed to reassure investors that the company will gain ground in the market for artificial intelligence software tools. The shares fell in extended traded.
* Urban Outfitters Inc., the Anthropologie and Free People brands, posted quarterly sales growth that came in below Wall Street’s expectations.
* Carlyle Group Inc. is acquiring Advance Auto Parts Inc.’s Worldpac unit for $1.5 billion, striking the first major industrial investment for the firm in more than two years.
* Zoom Video Communications Inc. gave a sales forecast for the current quarter that beat analysts’ estimates, suggesting its expanded suite of products is making gains with business customers.
* Starboard Value LP urged Autodesk Inc.’s board to evaluate whether Chief Executive Officer Andrew Anagnost is the right person to lead the company following recent accounting issues.

Key events this week:
* Japan CPI, Friday
* BOJ’s Kazuo Ueda to attend special session at Japan’s parliament to discuss July hike, Friday
* US new home sales, Friday
* Jerome Powell speaks in Jackson Hole, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.9% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.7%
* The Dow Jones Industrial Average fell 0.4%
* The MSCI World Index fell 0.6%
* Bloomberg Magnificent 7 Total Return Index fell 2.4%
* The Russell 2000 Index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.4% to $1.1108
* The British pound was little changed at $1.3085
* The Japanese yen fell 0.8% to 146.31 per dollar
Cryptocurrencies
* Bitcoin fell 1.5% to $60,314.55
* Ether fell 0.9% to $2,607.87
Bonds
* The yield on 10-year Treasuries advanced six basis points to 3.86%
* Germany’s 10-year yield advanced five basis points to 2.24%
* Britain’s 10-year yield advanced seven basis points to 3.96%
Commodities
* West Texas Intermediate crude rose 1.4% to $72.93 a barrel
* Spot gold fell 1.2% to $2,483.12 an ounce

This story was produced with the assistance of Bloomberg Automation.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
It’s not what happens to you, but how you react that matters. -Epictetus, c. 50 AD-c. 135 AD.

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