May 14th, 2025, Newsletter

Dear Friends,

Tangents:
Carolann is away from the office for Sohn Investment Conference in New York, I will be writing the newsletter on her behalf.

May 14: 1853 Land surveyor, newspaper publisher and inventor Gail Borden patents his process for condensed milk
May 14: 1897 Oldest continuously operating movie theater in the world, the State Theatre first opens in Washington, Iowa (Guinness World Records)
May 14: 1910 Canada authorizes issuing of silver dollar coins
May 14:1932 “We Want Beer!” parade in NY
May 14: 1998 The TV series “Seinfeld” aired its final episode. Go to article

The Milky Way will be visible across the US this month. Here’s how to get the best views.
For those in midlatitudes of the Northern Hemisphere, the arc of our galaxy becomes easier to see in May. Here’s when and where to look.

Scientists think a hidden source of clean energy could power Earth for 170,000 years — and they’ve figured out the ‘recipe’ to find it
Researchers have compiled a list of “ingredients” that could help resource exploration companies locate huge reservoirs of clean hydrogen, a critical element in the transition away from fossil fuels.

4,000-year-old stone-lined burial discovered in Morocco
Archaeologists working in the Tangier Peninsula, in northwest Morocco, have discovered ancient cemeteries, rock art and standing stones.

Your fingers ‘prune’ the exact same way each time, study suggests
The wrinkled, raisin-like patterns you get on your fingers after a long bath form the same patterns every time, new research suggests.

Lights on Mars! NASA rover photographs visible auroras on Red Planet for the first time
NASA’s Perseverance rover recently captured a photo of green auroras shining in the Martian sky for the first time. The alien light show, previously assumed to be impossible, could be visible to future astronauts.

PHOTOS OF THE DAY

Alberobello, Italy
The peloton rolls out of town as cyclists compete in the Giro d’Italia race
Photograph: Zac Williams/SWpix.com/Shutterstock

Damascus, Syria
Crowds of people celebrate the decision by the US president, Donald Trump, to lift sanctions on the country
Photograph: Amadeusz Mikolaj Swierk/Anadolu/Getty Images
Çanakkale, Turkey
A black-winged stilt on Kavak Delta, a natural wetland for migratory birds
Photograph: Alper Tuydes/Anadolu/Getty Images
Market Closes for May 14^th, 2025

International Markets

Bonds

Currencies

Commodities

Market Commentary:
“Price is what you pay. Value is what you get.”— Warren Buffett
Canada
(MT Newswires)
The Toronto Stock Exchange rose for a seventh-straight session on Wednesday, with investors perhaps enthused by news of a personal tax cut to come mid-year as part of a drive by the new federal government to help Canadians come out of what has been a difficult few economic months amid U.S. trade wars.
The S&P/TSX Composite Index closed up 75.59 points to close out Wednesday at 25,692.45.
Among sectors, Telecoms and Energy were the biggest decliners, down 1.03% and 0.77%, respectively, followed by Utilities, down 0.25%.
Industrials and Information Technology were both higher, up 1.46% and 1.33%, respectively.
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose 0.3%, with four of 11 sectors higher, led by information technology stocks.
As of market close, 122 of 217 stocks rose, while 92 fell.
Finning International Inc. led the advances, rising 6.6%, while Aya Gold & Silver Inc. decreased 7.3%.
Markets at a Glance:
* S&P/TSX Index rose 0.3% to 25,692
* Four of 11 sectors rose
** Information technology gained, up 2.2%
** Materials declined, down 1.8%
* Crude oil fell 1.4% to $63/bbl
* Natgas fell 5.3% to $3.46/mmbtu
* Gold fell 2% to $3,184/oz
* Silver fell 2.4% to $32/oz
Advancers:
* Finning International Inc. (FTT CN) +6.6%: Finning International Volume Jumps to More Than Five Times
* Canadian Pacific Kansas City Ltd. (CP CN) +3.8%: Artisan Partners Buys Baker Hughes, Boosts Icon: 13F
* Shopify Inc. (SHOP CN) +3.8%: Shopify Reinstated Buy at William O’Neil
* Boyd Group Services Inc. (BYD CN) +3.6%: Boyd Group Services 1Q Adjusted Ebitda Beats Estimates
* Celestica Inc. (CLS CN) +3.6%: Celestica Rated New Buy at William O’Neil
Decliners:
* Aya Gold & Silver Inc. (AYA CN) -7.3%: Aya Gold & Silver Rated New Buy at Beacon Securities; PT C$20
* Baytex Energy Corp. (BTE CN) -5.6%
* CAE Inc. (CAE CN) -5%: CAE Falls on Weaker 2026 Guide Amid Travel Woes: Street Wrap
* Onex Corp. (ONEX CN) -5%
* Lundin Gold Inc. (LUG CN) -4.5%: Lundin Gold Raised to Buy at Veritas Investment Research Co
US
By Rita Nazareth
(Bloomberg) — Wall Street’s epic rebound from April’s meltdown is showing signs of exhaustion on speculation stocks have run too fast amid risks stemming from a trade war to an economic slowdown and sticky inflation.
After a 22% jump from last month’s intraday lows, the S&P 500 edged up just 0.1%.
Most sectors fell, but big tech climbed.
Boeing Co. gained on its largest-ever deal, with Qatar Airways placing an order for long-range jets during a visit to Doha by Donald Trump.
The dollar erased losses as Bloomberg News reported the US is not working to include currency policy pledges in trade accords.
Bond yields rose as Federal Reserve rate-cut bets receded.
A sharp rebound in risk assets — fueled by progress in trade talks and economic resilience — followed a month in which the consensus was to brace for the worst.
The US-China truce, a UK pact and high-profile Gulf deals have reassured investors, yet lurking in the background is the worry that stocks get so extended that they’re vulnerable to surprises.
“As trade tensions ease, investors are pivoting back to fundamentals, but they may not like what they see,” said Mark Hackett at Nationwide.
“The market has raced from oversold to overbought in record time.
That limits near-term upside unless we see a clear re-acceleration in growth.”
To Matt Maley at Miller Tabak, a breather in the equity rally would be “quite normal and healthy.”
The S&P 500’s 14-day Relative Strength Index is at the highest since December.
Meantime, the CNN Fear/Greed gauge approached “extreme greed” levels.
“Stocks are getting a little short-term stretched, but we’d view modest pullbacks that confirm support as buying opportunities, especially among sectors with relative strength,” said Craig Johnson at Piper Sandler.
The Nasdaq 100 added 0.6%.
The Dow Jones Industrial Average lost 0.2%.
A gauge of the “Magnificent Seven” megacaps climbed 1.7%.
In late hours, Cisco Systems Inc. gave a bullish forecast while Coreweave Inc. said artificial-intelligence cloud demand is accelerating.
The yield on 10-year Treasuries advanced seven basis points to 4.54%.
The Bloomberg Dollar Spot Index was little changed.
Stocks remain vulnerable to further declines if deteriorating economic data reignite recession worries, according to Goldman Sachs Group Inc. strategists led by Peter Oppenheimer.
The recent correction was rapid and consistent with an “event-driven bear market,” they wote.
“The average profile of these bear markets remains flat at best for some time after the initial fall,” the Goldman strategists said.
“If this typical pattern is followed, the near-term upside is likely to be limited.”
To Rick Gardner at RGA Investments, the stock-market rally has legs.
“The trade negotiation with China was seemingly the toughest one on the docket, and the idea that there has been this much progress on the negotiations over such a short period of time, suggests that a resolution may be on the horizon,” he said.
Gardner says that what’s been remarkable about the rebound from April lows is the leadership of the tech sector — which was not leading the market in the early months of 2025 before the tariff situation escalated.
“We anticipate tech may continue to lead this market, as the sector stands to benefit from easing trade tensions and as investors once again resume their excitement over the promise of artificial intelligence,” he noted.
“Even if we see a continued economic slowdown, the stock market may have already priced that in during the April selloff.”
Two of Wall Street’s major trading desks are making the same bold call on US stocks as trade tensions ease: Pile into this year’s biggest losers for quick, short-term profits.
Heads of equity trading at Citigroup Inc. and JPMorgan Chase & Co. say they’re particularly bullish over the next few weeks on small caps, technology hardware and homebuilders, which have each lagged the broader S&P 500 during the most recent leg up.
In the current environment, Stuart Kaiser, who runs Citi’s desk as head of US equity trading strategy, also likes shares of companies with weaker finances, he said.
With the broader US stock indexes already erasing their declines of the year, the firms now say the traders and other speculative buyers who missed out will be on the hunt for pockets of opportunity to play catch-up before the next bout of tariff-induced turbulence strikes again.
“Despite this momentum, the full extent of tariff and earnings-related hits is still unknown,” said Daniel Skelly at Morgan Stanley’s Wealth Management Market Research & Strategy Team.
“Investors may want to lean toward buying dips rather than chasing rallies, focusing on quality stocks with achievable earnings estimates.”
“Our neutral view is not a ‘negative’ stance,” said David Lefkowitz at UBS Global Wealth Management.
“We believe the bull market is intact and stocks will likely rise further over the next year.
But the economy will have to adjust to higher tariffs, and this could lead to a period of weaker economic data, which could be a modest headwind for stocks.”
Without any relevant economic data to digest, traders awaited a raft of reports scheduled for Thursday while sifting through the latest Fedspeak.
Fed Bank of Chicago President Austan Goolsbee said that it’s important for central bankers not to respond to day-to-day volatility in equities and economic policy pronouncements, noting that economic data remain steady for now.
Fed Vice Chair Philip Jefferson said tariffs and related uncertainty could slow growth and boost inflation this year, but monetary policy is well positioned to respond as needed.
“Fed vice chair Jefferson’s speech today leans a little dovish after a run of more hawkish commentary from Fed officials, signaling that the Fed leadership is (sensibly) wary of calling the all-clear on downside risk even after US-China de-escalation,” said Krishna Guha at Evercore.
TD Securities joined several other Wall Street banks in predicting the Fed will cut rates later than previously anticipated, and swap contracts ceased fully pricing in two quarter-point moves by year-end. 

Corporate Highlights:

* Super Micro Computer Inc. extended this week’s surge on a multi-year partnership agreement with Saudi Arabian data-center firm DataVolt.
* Oil giant Saudi Aramco signed agreements with major US companies potentially totaling about $90 billion.
* EToro Group Ltd. rose 29% in its first session as a public company, after the trading and investment platform and some of its backers raised nearly $620 million in an upsized IPO.
* Apple Inc. is developing a feature for its Vision Pro headset that lets users scroll through software with their eyes, aiming to enhance the device with a novel interface.
* Microsoft Corp.’s recently announced job cuts fell hardest on the people who build the company’s products, showing that even software developers are at risk in the age of artificial intelligence.
* Coinbase Global Inc. Chief Executive Officer Brian Armstrong said the largest US crypto exchange continues to look at mergers and acquisitions, following its $2.9 billion agreement to buy the derivatives exchange Deribit earlier this month.
* Tyson Foods Inc. is looking to run its chicken plants harder as demand is set to remain strong into 2026.
* JBS SA, the world’s largest meat supplier, faces deepening losses at its US beef business, even as chicken continues to drive profits.
* Cboe Global Markets Inc. declined after Morgan Stanley double downgraded the stock, recommending lower defensives exposure on the back of greater than expected tariff de-escalation between China and the US.
* Nucor Corp. shut down production at some of its facilities fter detecting an unauthorized intrusion into its computer systems.
* Saudi-backed electric-vehicle maker Lucid Group Inc. said the kingdom should consider tariffs on foreign cars to boost domestic auto manufacturing and cut reliance on imports.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.6%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World Index was little changed
* Bloomberg Magnificent 7 Total Return Index rose 1.7%
* The Russell 2000 Index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.2% to $1.1168
* The British pound fell 0.3% to $1.3260
* The Japanese yen rose 0.4% to 146.82 per dollar
Cryptocurrencies
* Bitcoin fell 1.2% to $103,306.54
* Ether fell 3.2% to $2,603.36
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 4.54%
* Germany’s 10-year yield advanced two basis points to 2.70%
* Britain’s 10-year yield advanced four basis points to 4.71%
Commodities
* West Texas Intermediate crude fell 1.3% to $62.83 a barrel
* Spot gold fell 2.1% to $3,180.73 an ounce

–With assistance from Margaryta Kirakosian, Sujata Rao and Phil Kuntz.
Have a wonderful evening everyone.

Be magnificent!

As ever,

Shab
” Chance fights ever on the side of the prudent.”—Euripides

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.
340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828