November 12, 2024 Newsletter

Dear Friends,

Tangents:

November 12, 1990:  British scientist Tim Berners-Lee at CERN releases a proposal for the World Wide Web, sparking an internet revolution that transforms communication and modern life.

‘Webb has shown us they are clearly wrong’: How astrophysicist Sophie Koudami’s research on supermassive black holes is rewriting the history of our universe
How did supermassive black holes get big so fast? Astrophysicist Souphie Koudmani tells us how she and her colleagues are finding out.  Read More.

150,000-year-old rock-shelter in Tajikistan found on ‘key route for human expansion’ used by Homo sapiens, Neanderthals and Denisovans
A newfound rock-shelter in Tajikistan has artifacts created by ancient humans spanning 130,000 years. Read More.

Evolution quiz: Can you naturally select the correct answers?
How much do you know about evolution? Take this quiz to find out. Read More.

What’s the ‘coastline paradox’?
Coastlines are challenging to measure, but why? Read More.

Sick of turbulence? Future passenger planes could use AI to maintain a smooth in-flight experience on the fly
Turbulence in airplanes could become a thing of the past with FALCON, a new AI system that helps vehicles learn how to adjust to turbulence within a matter of minutes. Read More.

New research about a misunderstood planet
A coincidence during a historic 1986 Uranus flyby may have skewed the way scientists understand the planet, a study found.

Disney cruise ship rescues 4 people from sinking catamaran
A Disney cruise ship assisted the US Coast Guard in the rescue of four stranded boaters off the coast of Bermuda on Sunday. Read about the ordeal.

PHOTOS OF THE DAY

Cullercoats, England
People on Cullercoats beach, North Tyneside, at sunrise
Photograph: Owen Humphreys/PA

Amsterdam, the Netherlands
A worker begins the restoration of The Night Watch (De Nachtwacht) by the Dutch painter Rembrandt van Rijn at the Rijksmuseum. The first step in the restoration process is the removal of the varnish from the painting
Photograph: Eva Plevier/EPA

​​​​​​​Rome, Italy
Coins are tossed into a small pool in front of the Trevi Fountain which has been emptied to undergo maintenance work
Photograph: Gregorio Borgia/AP
Market Closes for November 12, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1987: One of corporate America’s most successful forays into China began, with the formal opening of China’s first Kentucky Fried Chicken, just off Beijing’s Tiananmen Square.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.5%, or 133.73 to 24,923.01 in Toronto.
Today, information technology stocks led the market higher, as 2 of 11 sectors gained; 80 of 220 shares rose, while 135 fell.
Shopify Inc. contributed the most to the index gain and had the largest move, increasing 21.5%.
Insights
* This year, the index rose 19%, heading for the best year since 2021
* The index advanced 27% in the past 52 weeks. The MSCI AC Americas Index gained 35% in the same period
* The S&P/TSX Composite is at its 52-week high and 27.8% above its low on Nov. 10, 2023
* The S&P/TSX Composite is up 2.2% in the past 5 days and rose 1.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.5 on a trailing basis and 17.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.92t
* 30-day price volatility rose to 8.45% compared with 8.35% in the previous session and the average of 7.58% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 234.8551| 10.4| 6/3
Consumer Staples | 8.6349| 0.9| 6/4
Health Care | -0.3682| -0.5| 1/3
Real Estate | -0.8066| -0.2| 6/12
Consumer Discretionary | -1.9636| -0.2| 5/6
Communication Services | -2.2009| -0.3| 1/4
Utilities | -2.8079| -0.3| 5/10
Industrials | -8.1137| -0.3| 12/15
Financials | -15.2712| -0.2| 13/14
Energy | -35.2911| -0.8| 16/24
Materials | -42.9255| -1.5| 9/40
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | 228.0000| 21.5| 210.1| 47.6
Cameco | 10.1500| 4.6| 30.6| 32.8
Waste Connections | 6.2550| 1.3| 19.3| 32.2
TD Bank | -11.6200| -1.2| -53.9| -8.5
Enbridge | -11.7500| -1.3| 242.8| 23.2
TC Energy | -12.2100| -2.4| -27.0| 43.0
US
By Rita Nazareth
(Bloomberg) — A breakneck rally instocks ran out of steam, with Treasury yields soaring and the dollar hitting the highest level in two years ahead of a key inflation report.
Equities edged lower after the S&P 500’s biggest five-day run in a year.
Following sizable post-election gains, small caps and banks lost ground.
Tesla Inc. dropped after an almost 45% surge.
Bitcoin approached $90,000 as traders bet on a boom under President-elect Donald Trump.
The dollar rose to its highest since November 2022.
Treasury yields climbed, with data expected to show the uneven path of easing price pressures in the home stretch toward the Federal Reserve’s target.
Fed Bank of Minneapolis President Neel Kashkari said he’ll be looking at incoming inflation data to determine whether another rate cut is appropriate in December.
To Will Compernolle at FHN Financial, a hot consumer price index and/or strong retail spending could push yields higher if a December rate cut “starts looking imprudent.”
The post-election advance in US stocks could stall as investors start to take profits, according to strategists at Citigroup Inc. led by Chris Montagu.
Investor exposure to American shares jumped to the highest since 2013 after the presidential vote amid optimism around stronger economic growth, according to a survey from Bank of America Corp.
“We are on watch for potential profit taking, consolidation, or even correction for US equities heading into the first quarter of the new year,” said Dan Wantrobski at Janney Montgomery Scott.
“Upward momentum remains strong and investor sentiment favorable, but stocks are once again overbought/extended across multiple timeframes.”
The S&P 500 fell 0.3%.
The Nasdaq 100 dropped 0.2%.
The Dow Jones Industrial Average slid 0.9%.
The Russell 2000 slipped 1.8%.
Treasury 10-year yields advanced 12 basis points to 4.43%.
The Bloomberg Dollar Spot Index rose 0.4%.
The core consumer price index due on Wednesday, which excludes food and energy, likely rose at the same pace on both a monthly and annual basis compared to September’s readings.
The overall CPI probably increased 0.2% for a fourth month, while the year-over-year measure is projected to have accelerated for the first time since March.
A survey conducted by 22V Research shows 55% of investors expect the market reaction to CPI to be “mixed/negligible”, 31% said “risk-off” and only 14%, “risk-on.”
Meantime, 48% of investors surveyed by 22V believe that core CPI is on a Fed-friendly glide path without a significant tightening of financial conditions or a recession.
However, 44% believe that financial conditions need to tighten.
This is the highest value since April.
Scott Kleinman at Apollo Global Management Inc. has warned markets not to get too comfortable with the current trajectory of inflation and interest rates.
“Inflation is not tamed,” Kleinman said in a Bloomberg Television interview on Tuesday. “The Fed can say what it wants. You just have to open your eyes and look around.”
Swap contracts are pricing in about 14 basis points of easing, or about 55% of a quarter-point rate cut on Dec. 18, down from near full certainty at the start of the month.

Corporate Highlights:
* Qualcomm Inc. Chief Executive Officer Cristiano Amon said the artificial intelligence boom won’t lead to a global chip shortage similar to what happened during the pandemic, even with demand for AI-enabled smartphones rising.
* Apple Inc. was notified by the European Union that its geo-blocking practices are potentially in breach of consumer protection rules, adding to the iPhone maker’s regulatory issues in the bloc.
* Meta Platforms Inc. rebuffed the Federal Trade Commission’s plans to modify a 2020 privacy settlement with the company, arguing that such a move would need approval from a federal court.
* Dish Network Corp. creditors rejected the US satellite- television provider’s bond-exchange offer, as the deadline arrives for a debt deal that is key to the company’s proposed acquisition by rival DirecTV.
* The US Justice Department sued Tuesday to block UnitedHealth Group Inc.’s $3.3 billion purchase of Amedisys Inc. over concerns the deal would harm competition in the market for home- health and hospice services.
* Home Depot Inc. lifted its forecast for a key sales metric after adverse weather propped up demand for home-improvement materials in the latest quarter.
* Elliott Investment Management has built a $5 billion-plus position in Honeywell International Inc. and is pushing the industrials giant to pursue a break up.
* Tyson Foods Inc. beat fiscal fourth-quarter earnings estimates and projecting stronger results next year, with a turnaround in its chicken business offsetting losses in beef.
* Boeing Co. delivered 14 jetliners in October, its lowest monthly total since November 2020, as a strike by the company’s largest union hamstrung its operations.

Key events this week:
* Eurozone industrial production, Wednesday
* US CPI, Wednesday
* Fed speakers include Jeffrey Schmid, Lorie Logan, Neel Kashkari and Alberto Musalem, Wednesday
* Eurozone GDP, Thursday
* US PPI, jobless claims, Thursday
* Fed speakers include Jerome Powell, John Williams and Adriana Kugler, Thursday
* China retail sales, industrial production, Friday
* US retail sales, Empire manufacturing, industrial production, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.2%
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World Index fell 0.6%
* The Russell 2000 Index fell 1.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.3% to $1.0624
* The British pound fell 0.9% to $1.2748
* The Japanese yen fell 0.5% to 154.54 per dollar
Cryptocurrencies
* Bitcoin rose 1.9% to $89,685.34
* Ether fell 1% to $3,293.12
Bonds
* The yield on 10-year Treasuries advanced 12 basis points to 4.43%
* Germany’s 10-year yield advanced four basis points to 2.36%
* Britain’s 10-year yield advanced seven basis points to 4.50%
Commodities
* West Texas Intermediate crude was little changed
* Spot gold fell 0.7% to $2,600.64 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
A leader has the right to be beaten, but never the right to be surprised. –Napoleon Bonaparte,1769-1821.

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 (Text Only)
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www.carolannsteinhoff.com