Dear Friends,
Tangents:
December 1, 1967: The first human heart transplant is performed by Dr. Christiaan Barnard in Cape Town, South Africa, revolutionizing organ transplantation.
1984: Bhopal poison gas disaster.
Joseph Conrad, writer, b. 1857.
Carlos Montoya, guitarist, b. 1903.
Julianne Moore, actress, b. 1961.
Darryl Hannah, actress, b. 1961.
Remains of what was likely a funeral feast were discovered in a 4,000-year-old jug in Africa. Read More.
The Cold Moon, the 12th and final full moon of 2025, will rise tomorrow (Dec. 4) and reach its highest point in the night sky. Read More.
Law of ‘maximal randomness’ explains how broken objects shatter in the most annoying way possible
A new mathematical equation describes the distribution of different fragment sizes when an object breaks. Remarkably, the distribution is the same for everything from bubbles to spaghetti. Read More.
| The snakes stayed large and thrived even when cooling temperatures and shrinking habitats killed off other giant reptiles millions of years ago. Read More. |
Chinese space mission ends in crash
A Chinese reusable booster crashed while attempting to land today during its historic first orbital test, highlighting the challenge of chasing American rivals like SpaceX.
Worried about your kid’s phone use?
Fortunately, a few tools can keep it in check. Watch the video here.
How to fall asleep anywhere
Sleep coach Nick Littlehales developed techniques to help professional climbers sleep while hanging off the side of a mountain. Learn how you can train yourself to nap practically anywhere.
Sabrina Carpenter calls White House video using her song ‘evil and disgusting’
The White House social media team is in hot water with one of the world’s biggest pop stars.
PHOTOS OF THE DAY
Brixham, UK
The artist Emily Powell inside the living room of her terraced home. Powell has spent nearly a decade hand-painting every room turning it into an immersive artwork
Photograph: Ben Birchall/PA
Gloucestershire, UK
‘A beech tree with its fresh green leaves fights for light in a dense conifer plantation in the Forest of Dean.’
Photograph: Clive Mowforth
Tarifa, Spain
‘This small municipality is one of the windiest places in Europe and is a magnet for kite surfers. I was enjoying some late autumn sun and stumbled across an elite group practising their skills over the town’s main beach.’
Photograph: Kevin Freeman
Market Closes for December 3rd, 2025
| Market Index |
Close | Change |
| Dow Jones |
47882.90 | +408.44 |
| +0.86% | ||
| S&P 500 | 6849.72 | +20.35 |
| +0.30% | ||
| NASDAQ | 23454.09 | +40.42 |
| +0.17% | ||
| TSX | 31160.54 | +111.26 |
| +0.36% |
International Markets
| Market Index |
Close | Change |
| NIKKEI | 49864.68 | +561.23 |
| +1.14% | ||
| HANG SENG |
25760.73 | -334.32 |
| -1.28% | ||
| SENSEX | 85106.81 | -31.46 |
| -0.04% | ||
| FTSE 100* | 9692.07 | -9.73 |
| -0.10% |
Bonds
| Bonds | % Yield | Previous % Yield |
| CND. 10 Year Bond |
3.222 | 3.244 |
| CND. 30 Year Bond |
3.705 | 3.701 |
| U.S. 10 Year Bond |
4.0633 | 4.0788 |
| U.S. 30 Year Bond |
4.7308 | 4.7397 |
| BOC Close | Today | Previous |
| Canadian $ | 0.7168 | 0.7158 |
| US $ |
1.3948 | 1.3969 |
| Euro Rate 1 Euro= |
Inverse | |
| Canadian $ | 0.6143 | 1.6277 |
| US $ |
0.8569 | 1.1669 |
Commodities
| Gold | Close | Previous |
| London Gold Fix |
4214.75 | 4238.85 |
| Oil | ||
| WTI Crude Future | 58.95 | 58.64 |
Market Commentary:
On this day in 1999, exactly one month after closing above 3000 for the first time, the NASDAQ Composite Index breaks the 3500 barrier, finishing the day above 3520.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.4% at 31,160.54 in Toronto.
The move follows the previous session’s decrease of 0.2%.
Shopify Inc. contributed the most to the index gain, increasing 1.7%.
Ivanhoe Mines Ltd. had the largest increase, rising 8.6%.
Today, 119 of 212 shares rose, while 92 fell; 7 of 11 sectors were higher, led by energy stocks.
Insights
* This year, the index rose 26%, heading for the best year in at least 10 years
* This quarter, the index rose 3.8%
* The index advanced 22% in the past 52 weeks. The MSCI AC Americas Index gained 14% in the same period
* The S&P/TSX Composite is 0.8% below its 52-week high on Nov. 28, 2025 and 40.2% above its low on April 7, 2025
* The S&P/TSX Composite is little changed in the past 5 days and rose 2.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.7 on a trailing basis and 19.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$4.93t
* 30-day price volatility fell to 14.25% compared with 14.33% in the previous session and the average of 14.89% over the past month
Index Points
Energy | 40.9731| 0.9| 34/3
Industrials | 40.9425| 1.2| 21/8
Information Technology | 33.2053| 1.1| 6/3
Financials | 12.2514| 0.1| 12/12
Consumer Discretionary | 2.9390| 0.3| 6/3
Materials | 1.8773| 0.0| 23/27
Health Care | 1.0448| 1.3| 4/0
Real Estate | -1.3801| -0.3| 3/16
Communication Services | -2.9974| -0.5| 2/3
Utilities | -5.5093| -0.5| 3/11
Consumer Staples | -12.0695| -1.1| 5/6
Shopify | 32.1700| 1.7| -21.8| 45.8
RBC | 23.8900| 1.1| 22.8| 26.1
Canadian Pacific | Kansas | 16.6700| 2.6| 8.4| -0.9
National Bank of | Canada | -7.4540| -1.6| 96.2| 28.5
Enbridge | -10.0600| -1.0| -15.9| 9.2
Barrick Mining | -10.8600| -1.6| -46.2| 153.5
Ivanhoe Mines | 8.6| 6.1720| 55.8| -8.5
Capstone Copper | 8.4| 4.3710| 77.5| 45.8
IPC | 7.7| 0.9510| 26.7| 71.4
G. Mining | Ventures | -4.2| -1.5780| 0.3| 196.2
Orla Mining | -4.1| -1.4200| -8.4| 134.2
Endeavour Silver| -3.6| -0.9330| -9.3| 136.4
MT Newswires:
The Toronto Stock Exchange closed up for the first time this week on Wednesday, taking the index back to within 40 points of last Friday’s record, with investors likely buoyed by improved commodity prices and also by Canada’s top banks as three of them have over the last two days reported better than expected overall earnings.
The resources-heavy index closed up 111.26 points, or 0.35%, to 31,160.54, approaching the record close of 31,197.71 set last Friday.
Most sectors were higher, led by Base Metals, up 3.5%. and Energy, up 2%.
Among decliners, the Battery Metals Index was 1.2% lower, with Telecom down 0.75% and Utilities down 0.5%.
Among the banks, Royal Bank of Canada (RY.TO, RY) was up 1.1% as it reported higher than expected earnings for its fiscal fourth quarter, reflecting strong across-the-board performance from its units, leading it to hike its dividend and revise its ROE financial objective to 17%-plus for fiscal 2026.
National Bank of Canada (NA.TO) lodged a big beat in adjusted earnings for the fourth quarter, citing "revenue growth in all business segments", prompting it to raise its quarterly dividend by $0.06, even as provisions for credit losses did increase significantly in the three-month period.
Shares in National Bank were down 1.5%.
The other three among Canada’s top six banks report tomorrow, with CIBC (CM.TO) at 5.30am, Bank of Montreal (BMO.TO) at 6am and TD Bank (TD.TO) at 6.30am.
Of commodities, gold traded higher by late afternoon Wednesday as the dollar and treasury yields fell after a report showed an unexpected drop in U.S. private-sector jobs last month, firming expectations the Federal Reserve will cut interest rates next week. Gold for February delivery was up $17.00 to US$4,237.80 per ounce.
Also, West Texas Intermediate crude oil rose even after a report showed U.S. inventories were up last week, while negotiations to end Russia’s war on Ukraine failed to reach an agreement, supporting prices.
WTI crude oil for January delivery closed up $0.31 to settle at US$58.95 per barrel, while February Brent oil was up $0.22 to US$62.67.
US
By Rita Nazareth
(Bloomberg) — More evidence of a slowdown in the US jobs market reinforced bets the Federal Reserve will cut interest rates in its final policy meeting of 2025, driving stocks higher as bond yields fell alongside the dollar.
Almost 350 shares in the S&P 500 rose despite weakness in most megacaps.
Nvidia Corp.’s Jensen Huang is unsure whether China would accept its H200 chips should the US relax restrictions.
Microsoft Corp. slid 2.5% on a report of lower demand for some artificial-intelligence tools even as the company said aggregate sales quotas for AI products have not been reduced.
Treasuries rose across the curve, sending two-year yields below 3.5%.
The greenback saw its worst day since September.
US companies shed payrolls in November by the most since early 2023, adding to concerns about weakening in the labor market.
Services activity expanded at a slightly faster pace, while a measure of prices paid dropped to a seven-month low.
Policymakers have been torn as to whether they’ll cut rates for a third straight meeting as they attempt to balance the slowdown in the job market with still-elevated inflation.
Investors, however, widely expect the Fed to lower borrowing costs next week.
“The faltering labor market will be the focus for the Fed at their December meeting,” said Jeff Roach at LPL Financial.
“Since earlier this year when we started to see a material weakening in the jobs market, I have believed labor demand is weak enough for the Fed to cut, including this month.”
The S&P 500 closed around 6,850, rising for the seventh time in eight sessions.
In late hours, Salesforce Inc. gave a solid revenue forecast.
Snowflake Inc.’s outlook for operating margin fell short of analysts’ estimates.
The yield on two-year Treasuries fell two basis points to 3.48%.
The dollar dropped 0.3%.
Bitcoin hovered near $93,000.
“This week’s data is largely confirming what traders already suspected: US data is cooling at the margin, and nothing this week is likely to change the market’s conviction that the Fed is heading towards a December cut,” said Fawad Razaqzada at Forex.com.
Even if ADP had popped higher, the timing works against the dollar, he added.
“This keeps the greenback vulnerable to further downside – particularly against lower-yielders like the yen, where the bond markets are pointing to strength for the currency,” Razaqzada noted.
The market is now pricing a more than 90% likelihood of a 25-basis-point reduction by the Fed at its policy meeting next week, up from around 25% just under two weeks ago, noted Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.
“We are positive on quality bonds, specifically high-grade government and investment-grade corporate bonds,” she said.
“Medium-duration quality bonds (four to seven years) should deliver mid-single-digit returns from a mix of yield and capital appreciation as the Fed cuts rates.”
Private-sector payrolls decreased by 32,000, according to ADP Research data.
The median estimate of economists called for a 10,000 gain.
“This morning’s ADP data confirm what a lot of the doves are saying – it’s more important to focus on a weakening labor market than to worry about inflation,” said Chris Zaccarelli at Northlight Asset Management.
“Although there may be some dissents at next week’s Fed meeting, it is a sure thing that a 25 basis-point rate cut will be announced.”
But going forward is where things get more confusing, he noted.
“Our expectation is that the doves will win out and we will see a number of rate cuts next year, but we think they may be more spaced out and potentially less cuts will be made than are currently being forecast, which is why we are bullish into the new year, but more cautious once we arrive in 2026,” he said.
Today’s ADP data keeps a December rate cut thoroughly in play, according to David Russell at TradeStation.
“Main street is hurting as months of uncertainty and tariffs take a toll.
AI is supporting parts of the economy, but many small businesses don’t benefit,” he said.
“The fact wages aren’t falling suggests this is a crisis of confidence in parts of the economy, and not the result of an actual recession.”
“The message is clear: US job creation has given another sign of stalling,” said Florian Ielpo at Lombard Odier Asset Management.
The latest jobs reading still appears to support the ongoing rally, fueled by a duration effect – lower long-term yields driven down by Fed cut expectations act as an apparent risk-on catalyst for equities, Ielpo noted.
“However, this is only superficial – the key question now is: what will the Fed actually do with this data given such a divided board of voters?
Monday’s industry ISM and today’s ADP report are screaming ‘cuts!’ and markets will likely echo this sentiment,” he said.
The modest fall in the ADP payrolls measure in November, coming on the back of a similar message from the Fed’s Beige Book, should be enough to persuade officials to vote for another cut next week, according to Stephen Brown at Capital Economics.
Looking through the month-on-month volatility, however, Brown noted that the broader message from the alternative indicators appears to be that labor market conditions are stable rather than deteriorating markedly.
“Accordingly, the Fed is still likely to accompany a further cut next week with more hawkish messaging about the prospect for future loosening,” he said.
His Capital Economics colleague Thomas Ryan said he expects concerns over softening labor market conditions among the doves on the Federal Open Market Committee to win out next week, resulting in another 25 basis-point cut.
“But in return, the more hawkish members are likely to secure language in the policy statement about the prospect of a pause in the new year,” Ryan noted.
While the most-recent US government report showed a larger- than-expected rise in payrolls, the gain was concentrated in just a few industries.
The unemployment rate ticked up to an almost four-year high, and there’s been a steady drumbeat of layoff news from companies.
“Right now, the data argues for additional Fed funds rate cuts. US labor demand is weak, consumer spending is showing early signs of cracking, and upside risks to inflation are fading,” said Elias Haddad at Brown Brothers Harriman & Co.
Before their final policy meeting of the year, Fed officials will get a dated reading on their preferred inflation gauge.
On Friday, the September income and spending report — long delayed because of the government shutdown — is due to be released.
The figures will include the personal consumption expenditures price index and a core measure that excludes food and energy.
Economists project a third-straight 0.2% increase in the core index.
That would keep the year-over-year figure hovering just below 3%, a sign that inflationary pressures are stable, yet sticky.
The soft survey data continue to paint a downbeat picture, but the behavior of consumers and businesses tells a very different story, according to Mark Hackett at Nationwide.
That’s why he believes Friday’s income, spending and PCE data will matter far more than what people say in surveys.
“Fundamentally, this still looks like a ‘buy-the-dip’ market: the backdrop is strong, technicals have snapped back and the valuation problem is really confined to mega-cap tech,” he said.
Corporate Highlights:
* Nvidia Corp. Chief Executive Officer Jensen Huang said he’s unsure whether China would accept the company’s H200 artificial intelligence chips should the US relax restrictions on sales of the processors, following a meeting Wednesday with President
Donald Trump.
* Meta Platforms Inc. has poached Apple Inc.’s most prominent design executive in a major coup that underscores a push by the social networking giant into AI-equipped consumer devices.
* Intel Corp. said it’s shelving plans to spin off or sell a stake in its networking division, after the company decided it’s more likely to succeed as an internal unit.
* Marvell Technology Inc. reassured investors that its custom chip-design unit is winning repeat orders, signaling continued growth as the company benefits from runaway spending on AI computing.
* Anthropic PBC Chief Executive Officer Dario Amodei suggested that some artificial intelligence companies are taking on too much risk by committing to spend hundreds of billions of dollars, if not more, to develop and support AI systems.
* The London Stock Exchange Group Plc has agreed a deal with OpenAI that will give ChatGPT access to its licensed financial news and data.
* Delta Air Lines Inc. expects to generate about $5 billion in profit in 2025, despite the record US government shutdown denting $200 million from its topline, after the carrier was forced to slash flights.
* Constellation Energy Corp. is hashing out a settlement with the US Justice Department to pave the way for the closure of its landmark $16.4 billion acquisition of closely held Calpine Corp., a deal that would create the country’s largest power fleet.
* American Eagle Outfitters Inc. posted third-quarter results that outpaced expectations and raised its outlook as the apparel chain pivots quickly from weakness earlier this year.
* Uber Technologies Inc. is launching autonomous rides with Avride Inc. in Dallas as part of a previously announced partnership, marking the latest US city where the ride-hailing giant is offering such a service.
* Capricor Therapeutics Inc. said its experimental drug helped patients with a deadly muscle disorder in a key trial, a finding it said could help overturn an earlier rejection by US regulators.
* Binance Holdings Ltd. named co-founder Yi He as co-chief executive officer in the biggest change to its top leadership since Changpeng Zhao stepped down from running the crypto exchange two years ago.
* Roblox Corp.’s popular gaming platform was blocked in Russia, local news outlets reported, cutting off millions of daily users.
* Royal Bank of Canada beat estimates on strong results in its capital-markets and wealth-management divisions, capping off a year of brisk trading activity, and set higher targets for returns on shareholders’ capital.
* National Bank of Canada beat estimates on better-than-expected results at its capital-markets unit in the fiscal fourth quarter, a resurgence for the division after it posted strong results earlier in the year but missed forecasts in the previous quarter.
* Glencore Plc outlined plans to almost double copper production over the next decade as the miner seeks to reverse a slump in output, although it was also forced to lower its ambitions for next year.
** Glencore will design and possibly develop a new copper smelter in Chile as the Swiss commodities giant looks to increase its exposure to a metal projected to be in short supply.
* Hugo Boss AG forecast a decline in sales and earnings next year as the German fashion house seeks to recover from a challenging period by streamlining its product range and raising prices.
* An Hermès heir is suing conglomerate LVMH and its billionaire CEO Bernard Arnault in a Paris civil court in a bid to recover about €14 billion ($16.3 billion) for his alleged lost shares in the maker of Birkin handbags.
* Zara owner Inditex SA’s sales accelerated in November, highlighting its resilience in the face of weakening consumer sentiment that’s hitting many of its peers.
* ByteDance Ltd.’s TikTok will invest more than 200 billion reais ($37.7 billion) to build a data center in Brazil, marking its first project in Latin America.
* At least three investors in a China Vanke Co. bond maturing this month have signaled to the embattled developer that they will oppose a plan to delay repayment, people familiar with the matter said.
What Bloomberg strategists say…
“After notably diverging from terminal-rate wagers last month, the dollar has now reversed course and is better aligned with expectations of a more accommodating Fed in the coming months.
That leaves the greenback on weaker footing globally, particularly as other central banks pause or consider further tightening.”
— Tatiana Darie, Macro Strategist, Markets Live.
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 0.2%
* The Dow Jones Industrial Average rose 0.9%
* The MSCI World Index rose 0.4%
* Bloomberg Magnificent 7 Total Return Index rose 0.1%
* The Russell 2000 Index rose 1.9%
* Microsoft fell 2.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.4% to $1.1667
* The British pound rose 1% to $1.3350
* The Japanese yen rose 0.4% to 155.25 per dollar
Cryptocurrencies
* Bitcoin rose 1.5% to $92,962.7
* Ether rose 4.9% to $3,143.54
Bonds
* The yield on 10-year Treasuries declined three basis points to 4.06%
* Germany’s 10-year yield was little changed at 2.75%
* Britain’s 10-year yield declined two basis points to 4.45%
* The yield on 2-year Treasuries declined two basis points to 3.48%
* The yield on 30-year Treasuries declined two basis points to 4.73%
Commodities
* West Texas Intermediate crude rose 0.8% to $59.10 a barrel
* Spot gold was little changed
Have a lovely evening.
Be magnificent!
As ever,
Carolann
What is beautiful is good, and who is good will soon be beautiful. –Sappho, c. 630 BCE-570 BCE.
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