September 23, 2024, Newsletter

Dear Friends,

Tangents: Happy Monday!
Carolann is away from the office; I will be writing the newsletter on her behalf.

September 23, 1911: Earle Ovington was designated as “Official Air Mail Pilot #1” by the United States Post Office Department. Read more.

James Webb Telescope goes ‘extreme’ and spots baby stars at the edge of the Milky Way
The James Webb Space Telescope has taken things to the extreme, studying the outer edge of our own galaxy, the Milky Way and producing a stunning new image. Read more.

2,700-year-old shields and helmet from ancient kingdom unearthed at castle in Turkey
The martial artifacts found at the temple complex were likely offerings that an ancient kingdom made to their chief god. Read More.

Cave of Swimmers: 9,000-year-old rock art of people swimming in what’s now the arid Sahara
This series of paintings, found inside a cave in the Sahara, shows a pair of swimmers. Read more.

PHOTOS OF THE DAY

Munich, Germany
Crowds are seen among the neon lights of the Oktoberfest grounds in an image taken from the tower of St Paul’s Church
Photograph: Stefan Puchner/AP

London, UK
Andy Warhol’s Flowers go on view at Sotheby’s as part of the prints & multiples auction taking place on 25 September.
Photograph: Tristan Fewings/Getty Images for Sotheby’s

​​​​​​​Groveland, US
Edoardo Marenzi of Italy slalom skis during the World Water Skiers Travers Cup at the Jack Travers waterski school in Florida
Photograph: Johnny Hayward/Getty Images
Market Closes for September 23^rd, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1998, Wall Street’s top investment banks, encouraged by the Federal Reserve, completed marathon negotiations for a $3.65 billion bailout of the hedge fund Long-Term Capital Management, which lost nearly $2 billion in a single month when the mathematical models designed by two Nobel laureates failed.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.1%, or 27.34 to 23,894.71 in Toronto.
Shopify Inc. contributed the most to the index gain, increasing 1.4%.
Secure Energy Services Inc. had the largest increase, rising 4.3%.
Today, 118 of 223 shares rose, while 100 fell; 6 of 11 sectors were higher, led by energy stocks.
Insights
* This year, the index rose 14%, heading for the best year since 2021
* This quarter, the index rose 9.2%, heading for the biggest advance since the second quarter of 2020
* This month, the index rose 2.3%
* The index advanced 21% in the past 52 weeks. The MSCI AC Americas Index gained 31% in the same period
* The S&P/TSX Composite is at its 52-week high and 27.8% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 0.8% in the past 5 days and rose 2.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.1 on a trailing basis and 16.6 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$3.78t
* 30-day price volatility little changed to 10.43% compared with 10.44% in the previous session and the average of 13.22% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 36.9079| 0.9| 23/17
Information Technology | 17.9957| 0.9| 8/2
Consumer Staples | 8.6549| 0.9| 9/2
Utilities | 5.1816| 0.6| 13/1
Consumer Discretionary | 1.4091| 0.2| 8/4
Real Estate | 0.7538| 0.1| 11/7
Health Care | -0.6163| -0.8| 0/4
Communication Services | -4.4647| -0.6| 2/3
Industrials | -4.6148| -0.1| 12/15
Financials | -11.8032| -0.2| 14/12
Materials | -22.0695| -0.7| 18/33
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | 12.4300| 1.4| -35.8| 4.9
RBC | 10.4800| 0.6| 10.4| 24.1
TC Energy | 7.0310| 1.6| 123.9| 22.9
Bank of Nova Scotia| -4.2090| -0.7| -0.3| 13.0
Canadian Pacific Kansas | -5.6060| -0.7| 37.5| 10.3
TD Bank | -15.1300| -1.4| 68.8| 0.8
US
By Cristin Flanagan
(Bloomberg) — US equities eked out a gain as traders parsed commentary from Federal Reserve policymakers and saw scope for further easing after last week’s half a percentage point interest-rate cut.
The S&P 500 advanced 0.3%, a whisker away from last week’s all-time high as Fed officials reflected on the central bank’s policy path.
In a sign that the market’s gains may be broadening out, an equal-weighted version of the benchmark — that gives Bath & Body Works Inc. the same sway as Nvidia Corp. — rose 0.5% to close at a record.
The Dow Jones Industrial Average also closed at a record while the Nasdaq 100 rose 0.3%.
Among individual movers, shares of Intel Corp. climbed 3.3% after Apollo Global Management Inc. was said to have offered to make a multibillion-dollar investment in the chipmaker.
Boeing Co. advanced some 2% after offering sweetened deal terms to striking workers.
Data showing US business activity is robust even as growth moderates stoked confidence the world’s largest economy can nail a soft landing.
US business activity expanded at a slightly slower pace in early September, according to data released Monday, while expectations deteriorated and a gauge of prices received climbed to a six-month high.
“This is a somewhat inconclusive report, and therefore it shouldn’t alter Fed expectations dramatically,” according to Vital Knowledge’s Adam Crisafulli. “The flash PMIs do suggest the US economy is on reasonably sound footing, especially compared to Europe.”
Traders have been wagering on nearly three-quarters of a point of policy easing by year end, suggesting at least one more jumbo rate cut is in store.
Wall Street and policymakers alike are awaiting jobs data for more clues on the direction of the economy.
Chicago Fed President Austan Goolsbee said with inflation approaching the central bank’s target the focus should turn to the labor market and “that likely means many more rate cuts over the next year.”
Neel Kashkari at the Minneapolis Fed also pointed to weakness in the job market, he backs lowering interest rates by another half percentage point by year end.
His counterpart at the Atlanta Fed, Raphael Bostic took a moderate stance.
Starting the central bank’s cutting cycle with a large step would help bring interest rates closer to neutral levels, but officials should not commit to a cadence of outsize moves, according to Bostic.
Later this week, investors will get data on the Fed’s preferred price metric and data on US personal spending, due on Friday. 
Yields on the policy-sensitive US two-year fell to 3.58% while longer dated Treasuries were little changed.
US government bonds had been under pressure with the Treasury slated to auction $183 billion in front-end supply and up to $25 billion of new issuance in corporates expected this week.
“With the Fed’s first rate cut since 2020 in the history books, many investors may be thinking, ‘Now what?’,” said Chris Larkin at E*Trade from Morgan Stanley. “That will keep the spotlight on economic growth, especially the jobs market.”
Wall Street strategist Ed Yardeni had a warning for central bankers, saying last week’s aggressive rate cut could cause inflation to resurface if central bankers don’t tread carefully.
The Fed is ignoring the upcoming presidential election where both candidates are proposing policies that could trigger inflation, he added.
In Europe, the euro slumped while European stocks notched small gains after weak PMI data for France and Germany was followed by numbers that showed the euro-area’s private-sector economy shrank for the first time since March.
The common currency weakened as much as 0.7% against the dollar amid wagers on more aggressive rate cuts from the European Central Bank.
“The market is almost demanding a more aggressive rate cut, especially after what we have seen the Fed has done,” Marija Veitmane, senior multi-asset strategist at State Street, said on Bloomberg Television. The ECB “is definitely behind the curve,” she said. 

Corporate Highlights:
Apollo Global Management Inc. has offered to make a multibillion-dollar investment in Intel Corp., according to people familiar with the matter, in a move that would be a vote of confidence in the chipmaker’s turnaround strategy.
Boeing Co. offered its largest union a 30% wage hike in a bid to break a stalemate that has shut down its aircraft manufacturing across the Pacific Northwest.
Brookfield Asset Management has raised an initial $2.4 billion for a fund dedicated to investing in clean energy and transition assets in emerging markets, about halfway to its goal.
Palantir Technologies Inc.’s co-founder and chief executive officer Alex Karp, has a love-hate relationship with Wall Street. He’s said that analysts don’t understand the company and that he prefers Palantir’s loyal army of retail investors.
StandardAero Inc. is seeking to raise $1.1 billion in its initial public offering, after its backer Carlyle Group Inc. had decided to pursue a listing for the aircraft maintenance services provider rather than a sale.
Elsewhere, Asian markets were lifted by speculation China is close to announcing fresh stimulus, after a cut to a short-term policy rate and a rare economic briefing scheduled for Tuesday.
Gold reached another record high as the worsening strife in the Middle East fueled wagers on further price gains in the metal due to its haven status.
US oil and gas stocks outperformed. 

Key events this week:
* Australia rate decision, Tuesday
* Japan Jibun Bank Manufacturing PMI, Services PMI, Tuesday
* Mexico CPI, Tuesday
* Bank of Canada Governor Tiff Macklem speaks, Tuesday
* Australia CPI, Wednesday
* China medium-term lending facility rate, Wednesday
* Sweden rate decision, Wednesday
* Switzerland rate decision, Thursday
* ECB President Christine Lagarde speaks, Thursday
* US jobless claims, durable goods, revised GDP, Thursday
* Fed Chair Jerome Powell gives pre-recorded remarks to the 10^th annual US Treasury Market Conference, Thursday
* Mexico rate decision, Thursday
* Japan Tokyo CPI, Friday
* China industrial profits, Friday
* Eurozone consumer confidence, Friday
* US PCE, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average rose 0.1%
* The MSCI World Index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.4% to $1.1114
* The British pound rose 0.2% to $1.3347
* The Japanese yen rose 0.2% to 143.51 per dollar
Cryptocurrencies
* Bitcoin rose 0.1% to $63,287.82
* Ether rose 3.8% to $2,672.08
Bonds
* The yield on 10-year Treasuries was little changed at 3.75%
* Germany’s 10-year yield declined five basis points to 2.16%
* Britain’s 10-year yield advanced two basis points to 3.92%
Commodities
* West Texas Intermediate crude fell 0.6% to $70.55 a barrel
* Spot gold rose 0.2% to $2,626.58 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Alyce Andres, Margaryta Kirakosian, Alex Nicholson, John Viljoen, Catherine Bosley and Alice Gledhill.

Have a wonderful evening everyone.

Be magnificent!

As ever,

Shab
“The most damaging phrase in the language is ‘We’ve always done it this way.'”– Grace Hopper

Shabnam Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
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