Newsletter, May 5th, 2025

Dear Friends,

Tangents: Cinco de Mayo.

May 5, 1904: Cy Yiung pitches a perfect game.

May 5, 1921: Coco Chanel releases her first fragrance, Chanel No. 5, marking the beginning of modern perfumery.

On May 5, 1961, astronaut Alan B. Shepard Jr. became America’s first space traveler as he made a 15-minute suborbital flight in a capsule launched from Cape Canaveral, Fla. Go to article

Soren Kierkegaard, philosopher, b. 1813.

Karl Marx, communist, b. 1818.

One of Pope Francis’ final wishes will come true
Before he died, the pontiff asked for one of his “popemobiles” to be converted into a mobile healthcare unit and sent to the Gaza Strip. The new clinic will feature medical equipment for diagnosing, examining and treating children and be staffed by doctors and medics.

Swing, batter batter… Swing, Kody!
Minnesota Twins’ infielder Kody Clemens hit a home run against the Boston Red Sox at Fenway Park over the weekend — something his father, MLB legend Roger Clemens, never managed to do during his storied career. Even better, his dad was in the stands to see it.

Superheroes are back on top
Marvel’s “Thunderbolts*” debuted at No. 1 at the box office this weekend, beating expectations with $76 million in domestic sales. The re-release of “Star Wars: Episode III — Revenge of the Sith” edged Warner Bros. Pictures and Amazon MGM Studios’ “The Accountant 2” for the No. 2 spot. (Warner Bros. Pictures, like CNN, is a unit of Warner Bros. Discovery.)

World’s oldest person dies at 116
Sister Inah Canabarro Lucas, a Brazilian nun who loved soccer, credited her Catholic faith as the secret to her longevity.

El Cono: The mysterious sacred ‘pyramid’ hidden deep in the Amazon rainforest

Cerro El Cono is a solitary, pyramidal hill in the Peruvian Amazon rainforest whose origins remain mysterious and that holds spiritual significance for Indigenous people. Read More.

Iconic ‘Eagle Nebula’ gets a major glow-up on Hubble’s 35th anniversary

One of the Hubble Space Telescope’s most iconic images has been reprocessed using the latest techniques. Read More.

Apulian rhyton: A 2,300-year-old Spartan-hound-shaped cup that was likely used at boozy bashes

This dog-shaped vessel was likely used for pouring wine, oil or blood in ancient rituals in what is now Italy. Read More.

PHOTOS OF THE DAY

Nara, Japan
A woman feeds a sika deer at Nara Park, established in 1880 and located at the foot of Mount Wakakusa. The park is considered a natural treasure and is home to many wild animals and various plant species

Photograph: Anadolu/Getty Images

Rust, Germany
Riders on the ‘Atlantica’ watersplash rollercoaster at the Europa Park amusement park, which marks the 50th anniversary of its opening this year on 12 July

Photograph: Romeo Boetzle/AFP/Getty Images

Vatican City
A mallard duck is seen near tourists taking selfies on the cobblestones of St Peter’s Square, with St Peter’s Basilica in the background

Photograph: Alberto Pizzoli/AFP/Getty Images

Market Closes for May 5^th, 2025

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Don’t watch the clock; do what it does.  Keep going. –Sam Levonson, b.1985.

Canada
(MT Newswires)
The Toronto Stock Exchange closed with a modest loss Monday as investors await tomorrow’s meeting between Canadian Prime Minister Mark Carney, and U.S. President Donald Trump to see if the groundwork can be laid then for an easing of trade tensions between the two nations.
The S&P/TSX Composite Index closed 77.99 points to 24,953.52. Of sectors, the biggest decliners were Health Care and Energy, down 3.70% and 2.65%, respectively.
Among individual stocks, cinema operator Cineplex (CGX.TO) closed down $0.50 to $9.85 after President Trump, in an unanticipated development on Sunday, said he wants to place a 100% tariff on films produced outside America.
National Bank noted: “It’s not clear if this tariff would hit all movies produced abroad or just non-U.S. productions.
Given the lead time involved in making films, it remains to be seen if such a tariff would be immediately imposed on product coming to the multiplex in 2025 or yet to be made.”
National Bank noted “this odd development” comes after the box office keeps recording gains in Q2 with another solid weekend just past, which has put year to date growth at the North American box office at plus 16.6% per BoxOfficeMojo after a minus 11.6% result for Q1.
“This is ahead of optimism for releases through the rest of the year and before the start of the summer season which begins with the long weekend for U.S. Memorial Day,” the bank said, while noting Cineplex will report its first-quarter results on May 9.
However, the Globe and Mail noted films and other information sources produced outside of the United States are “constitutionally protected” from any sanctions or tariffs under a 1988 law known as the Berman Amendment.
Still on matters related to Trump and tariffs, some investors may have already seen ominous signs ahead of the President’s meeting with Carney on Tuesday.
Trump in answering a question from a reporter in Washington earlier this afternoon claimed he is not sure what Carney wants to see him about when the pair meet at the White House, although the pair spoke on the phone last week and agreed then to meet on May 6.
Trump, who has not completed one trade deal with another nation in the more than 100 days he has been in office, said: “I guess he [Carney] wants to make a deal. Everybody does.”
“My government will fight to get the best deal for Canada,” Carney said Friday in his first news conference since the Canadian federal election this day last week.
Carney has also called for more respect for Canada given Trump’s threats on this nation’s sovereignty, and economy.
Meanwhile, S&P in noting that Canada’s largest trading partner, the United States., has introduced tariffs on Canadian imports, said the resulting trade tensions will disrupt the country’s growth over the next two years.
“The geopolitical trade policy environment remains uncertain,” it added.
S&P noted: “In the face of heightened uncertainty, Canada’s institutions have remained resilient and begun a measured response to tariffs that includes targeted support for affected workers and sectors.
The situation is dynamic, and we expect Canada’s response will continue evolving.”
The ratings agency has revised its base case to reflect growth of 1.4% in 2025, weaker government balances, and higher net debt.
S&P Global Ratings affirmed its ‘AAA’ long-term and ‘A-1+’ short-term sovereign credit ratings in Canada.
The outlook is stable.
Of commodities today, gold was sharply higher late afternoon on Monday as the dollar fell ahead of Wednesday’s interest-rate decision from the Federal Reserve.
Gold for June delivery was last seen up $96.60 to US$3,339.90 per ounce, rising for a second day, but staying below the April 21 record high of US$3,425.30.
But West Texas Intermediate crude oil closed at a four-year low early on Monday after OPEC+ said it will again speed the return of 2.2-million barrels per day of production cuts with a second-straight monthly supply increase of 411,000 bpd in June, a move likely to push the market into surplus even as the global economy slows amid trade wars.
WTI oil for June delivery closed down $1.16 to settle at US$57.21 per barrel, the lowest since February 2021, while July Brent crude was last seen down $0.93 to US$60.36.

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 0.3%, with seven of 11 sectors lower, led by health care stocks.
As of market close, 151 of 218 stocks rose, while 64 fell.
Parkland Corp. led the advances, rising 5.5%, while Bausch Health Cos. decreased 8.7%.
Markets at a Glance:
* S&P/TSX Index fell 0.3% to 24,954
* Seven of 11 sectors fell
** Health care declined, down 2.8%
** Materials gained, up 1.6%
* S&P 500 Index fell 0.6% to 5,650
* Nasdaq 100 Index fell 0.7% to 19,968
* Crude oil fell 2.1% to $57/bbl
* Natgas fell 1.1% to $3.59/mmbtu
* Gold rose 3% to $3,339/oz
* Silver rose 0.7% to $32/oz
Advancers:
* Parkland Corp. (PKI CN) +5.5%: Sunoco to Buy Parkland
* Bird Construction Inc. (BDT CN) +4.9%
* G. Mining Ventures Corp. (GMIN CN) +4.6%
* SSR Mining Inc. (SSRM CN) +4.6%: CORRECT: SSR Mining to Report Results: Preview
* Wesdome Gold Mines Ltd. (WDO CN) +4.3%
Decliners:
* Bausch Health Cos. (BHC CN) -8.7%
* Secure Waste Infrastructure Corp. (SES CN) -6.7%: Secure Waste Infrastructure Slips on Outlook Warning
* Baytex Energy Corp. (BTE CN) -6.6%
* Allied Properties Real Estate Investment Trust (AP-U CN) -5.1%
* Tilray Brands Inc. (TLRY CN) -4.8%
US

By Rita Nazareth
(Bloomberg) — A historic stock-market run came to a halt as President Donald Trump’s latest tariff remarks provided little relief to investors bracing for the impacts of his trade war on the economy and corporate earnings.
Despite data showing a pick-up in growth at US service providers, the S&P 500 halted its longest rally in about 20 years.
While Trump suggested some trade deals could come as soon as this week, there was no indication of an imminent accord with China.
In late hours, Ford Motor Co. pulled its financial guidance and said auto tariffs will take a toll on profit.
Palantir Technologies Inc. sales forecast fell short of Wall Street’s high hopes.
Recent economic data seems to have assuaged market concerns of a recession, but the outcome of Trump’s tariff war has yet to be felt.
For several market observers, tariffs will eventually slow the US economy as supply chains are upended and consumer confidence tumbles, with the increases in levies possibly delivering at least a temporary inflation shock.
Attention will soon shift to Wednesday’s Federal Reserve decision after bond traders dialed back rate-cut bets that had steadily mounted as Trump’s trade war unleashed havoc in financial markets.
As long as the economy holds firm, Jerome Powell and his colleagues can more easily justify the standing pat.
“Uncertainty rules amid a trade war and the ever-changing landscape of tariffs, but with the hard data on consumer spending and employment still hanging in there, the Fed will remain firmly planted on the sidelines,” said Greg McBride at Bankrate.
The S&P 500 fell 0.6%.
The Nasdaq 100 slid 0.7%.
The Dow Jones Industrial Average lost 0.2%.
The yield on 10-year Treasuries rose three basis points to 4.34%.
The Bloomberg Dollar Spot Index slipped 0.2%.
Oil sank as OPEC+ agreed to an output increase.
Taiwan’s dollar jumped on bets authorities might allow it to appreciate to help reach a trade deal with the US.
Treasury Secretary Scott Bessent touted the US as the “premier destination” for global capital and argued that the Trump administration’s policies will solidify that position — countering the so-called sell America theme that materialized last month.
Concerns about the international appeal of dollar-based assets materialized last month during a selloff in stocks in the wake of Trump’s announcement of steep reciprocal tariffs on major trading partners.
Contrary to typical practice, US Treasuries also tumbled — failing to play the haven asset role it has in the past.
“Clearly, it really is the uncertainty and the volatility — and so that is how clients are feeling globally, domestically.
And as part of that, they’re trying to figure out: Is there opportunity in this market?” Racquel Oden at HSBC said at an event.
“We’re seeing all these market swings, each day there’s a new report that may pivot things in the economy.”
After piling into short-term Treasuries, anticipating the Fed would start easing policy soon to contain the fallout, traders reversed course.
Two-year yields rose for a third consecutive session – the longest run since December – as traders bet policymakers will remain in wait-and-see mode until there’s more clarity on the impacts of tariffs.
“We believe that the longer policy uncertainty persists, the greater the potential hit to economic activity,” said Invesco’s Global Market Strategy Office.
“Tariff clock is ticking, and the Trump administration has a fairly limited window to make progress on trade deals before the economic damage becomes more pervasive and less reversible,” said Dave Grecsek, managing director at Aspiriant.
“The longer trade policy uncertainty lingers, the more economic damage accumulates.”
A trade deal with China would be a prerequisite to spur the S&P 500 to a new all-time high in the near term, according to strategists at Morgan Stanley.
The team led by Michael Wilson says a deal reached in the next few weeks would calm businesses that supply chains will face limited disruption going forward.
While there are many reasons to doubt the recent rebound in US stocks, it has at least one powerful factor on its side: momentum.
The S&P 500 notched it’s the longest winning stretch since 2004 on Friday, and such streaks have tended to precede further upside.
The gauge was a median 20% higher a year after moves of similar magnitude while notching gains in shorter-term periods along the way, according to WisdomTree’s Jeff Weniger, who analyzed data going back to the late 1980s.
“Your gut says, ‘Maybe this is too much, maybe take some chips off the table,’” said Weniger, the firm’s head of equities.
“But in actuality, this often times tends to beget more in the way of the rally.”

Corporate Highlights:
* Berkshire Hathaway Inc. followed Chief Executive Officer Warren Buffett’s recommendation, naming Vice Chairman Greg Abel to replace the billionaire as CEO, effective Jan. 1.
* President Trump said he would meet with Hollywood executives after confounding the US film industry over his plan to impose a 100% tariff on movies made overseas.
* Less than a year after completing a restructuring that was supposed to turn the troubled pharmacy chain around, Rite Aid Corp. has filed for bankruptcy again.
* Tyson Foods Inc. slumped as investors shrugged off stronger- than-expected quarterly earnings to focus on deepening losses at the company’s beef business.
* Shell Plc is working with advisers to evaluate a potential acquisition of BP Plc, though it’s waiting for further stock and oil price declines before deciding whether to pursue a bid, according to people familiar with the matter.
* Sunoco LP agreed to acquire Parkland Corp. for about $9.1 billion, including debt, offering a premium for a Canadian fuel distributor that’s in the midst of a leadership upheaval and a fight with its largest shareholder.
* 3G Capital will acquire footwear maker Skechers USA Inc. for $9.4 billion, marking a splashy return to dealmaking for the investment firm after nearly four years.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.6% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.7%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World Index fell 0.5%
* Bloomberg Magnificent 7 Total Return Index fell 1%
* The Russell 2000 Index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.1317
* The British pound rose 0.2% to $1.3295
* The Japanese yen rose 0.8% to 143.76 per dollar
Cryptocurrencies
* Bitcoin fell 1.5% to $94,342.31
* Ether fell 1.1% to $1,816.2
Bonds
* The yield on 10-year Treasuries advanced three basis points to4.34%
* Germany’s 10-year yield declined two basis points to 2.52%
* Britain’s 10-year yield advanced three basis points to 4.51%
Commodities
* West Texas Intermediate crude fell 2.2% to $57.01 a barrel
* Spot gold rose 2.8% to $3,330.51 an ounce

–With assistance from Vildana Hajric and Isabelle Lee.

Have a lovely evening.

Be magnificent!

As ever,

Carolann

Learning does not make one learned: there are those who have knowledge and those who have understanding.

The first requires memory and the second philosophy. –Alexandre Dumas, 1824-1895.

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)

Toll Free: 1.877.430.5895

Fax: 778.430.5828

www.carolannsteinhoff.com