April 9, 2020 Newsletter

Dear Friends,

Tangents:
APRIL 9, 1865: U.S. Civil War ends.

We have lots more ideas about what to read, cook, watch and do while staying safe at home. -from The New York Times.

The markets are closed tomorrow and it looks like a weekend of beautiful Spring weather is finally here, so I hope you are able to get out into nature and enjoy.

Those who contemplate the beauty of the earth find reserves of strength that will endure as long as life lasts.  There is something infinitely healing in the repeated refrains of nature – the assurance that dawn comes after night, and spring after winter. -Rachel Carson, 1907-1964.

HAPPY EASTER!
HAPPY PASSOVER!

PHOTOS OF THE DAY

An aerial view shows tulip fields in Plomeur, western France.
CREDIT: DAMIEN MEYER/AFP

A view of chocolate Easter bunnies with mouth masks during the production at the Wawi company in Pirmasens, Germany.
CREDIT: RONALD WITTEK/EPA

Cookie the cockapoo dog out for a morning walk amongst bluebells, Peterborough, UK.
CREDIT: PAUL MARRIOTT PHOTOGRAPHY

Farmer Miguel Torres picks sunflowers in Santiago de Las Vegas, Cuba.
CREDIT: ALEXANDRE MENEGHINI/REUTERS

Market Closes for April 9th ,2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1792, the Pennsylvania state legislature passed a law incorporating the Philadelphia and Lancaster Turnpike Co., the first major transportation stock in the U.S. The P&L issued 1,000 shares to the public at an initial price of $300. Investors oversubscribed, signing up for 2,276 shares, and the price more than tripled to $1,000 within days. It took the company roughly two years to complete the 62-mile toll road, but the P&L was a huge success and thrived for decades to come.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 1.7 percent, or 240.92 to 14,166.63 in Toronto. The index advanced to the highest closing level since March 11. Barrick Gold Corp. contributed the most to the index gain, increasing 10.0 percent. MTY Food Group Inc. had the largest increase, rising 25.9 percent. Today, 177 of 230 shares rose, while 49 fell; 9 of 11 sectors were higher, led by materials stocks.
Insights
* In the past year, the index had a similar or greater gain 13 times. The next day, it declined eight times for an average 4.5 percent and advanced five times for an average 2.2 percent
* So far this week, the index rose 9.5 percent, heading for the biggest advance in at least 10 years
* The index declined 13 percent in the past 52 weeks. The MSCI AC Americas Index lost 4.8 percent in the same period
* The S&P/TSX Composite is 21.2 percent below its 52-week high on Feb. 20, 2020 and 26.8 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 8.2 percent in the past 5 days and fell 2.4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.1 on a trailing basis and 15.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.7 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.13t
* 30-day price volatility little changed to 90.77 percent compared with 90.76 percent in the previous session and the average of 75.43 percent over the past month
================================================
Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================
Materials | 119.3192| 6.9| 42/4
Financials | 67.4198| 1.5| 24/2
Consumer Discretionary | 19.2112| 3.9| 14/1
Energy | 12.8680| 0.7| 18/11
Real Estate | 10.9466| 2.4| 23/3
Utilities | 10.0265| 1.3| 13/3
Industrials | 8.5404| 0.5| 24/5
Health Care | 6.6160| 4.7| 6/4
Information Technology | 1.3986| 0.1| 6/4
Communication Services | -1.5899| -0.2| 4/4
Consumer Staples | -13.8428| -2.2| 3/8
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. stocks posted the biggest weekly gain since 1974 as investors looked past staggering jobless numbers when the Federal Reserve released new measures to cushion the fallout from the coronavirus. Oil fell as investors saw a supply-curb proposal as insufficient. The S&P 500 Index rallied for the third time in four days, bringing this week’s increase to 12%. The Fed announced another series of sweeping steps to provide as much as $2.3 trillion in additional aid just as data showed the number of claims for unemployment benefits surged for a third week. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases, said U.S. fatalities from Covid-19 may be far fewer than earlier projections. “The Fed news is really bullish (along with global fiscal news) if we have confidence on ways to deal with the Covid bounce-back and ultimate vaccine solution,” said Dennis DeBusschere, head of portfolio strategy at Evercore ISI. “So positive outcomes on that front lead to fair value estimates going up, improving the risk reward from this level.” Oil slipped, reversing earlier gains, as investors saw OPEC+ supply-curb proposal as insufficient to offset estimates for demand destruction from the Covid-19 outbreak. The producer group, which includes Saudi Arabia and Russia, is set to cut 10 million barrels a day of its oil output for two months. Fed Chairman Jerome Powell reiterated that the U.S. central bank was committed to using all its powers to help the country recover.
     The Fed will wade into the municipal-bond market to an unprecedented degree, can now purchase “fallen angel” bonds from companies that have recently lost their investment-grade ratings, and has expanded its Term Asset-Backed Securities Loan Facility to include top-rated commercial mortgage-backed securities and collateralized loan obligations. The surprise pledge from the Fed to buy recently downgraded corporate bonds boosted some of the biggest ETFs tracking the securities. The $14.8 billion iShares iBoxx High Yield Corporate Bond ETF surged the most since January 2009. Gold closed at the highest since late 2012 as investors sought insurance against the possibility of further economic slowing. Elsewhere, the Stoxx Europe 600 Index rose. Government bonds in the region gained amid reports that Italy, Spain and the U.K. may extend lockdowns to combat the coronavirus outbreak. Most Asian stocks rose, though Japanese shares retreated.
These are some of the main moves in markets:
Stocks
The S&P 500 Index rose 1.4% to 2,789.82 as of 4:04 p.m. New York time, the highest in almost four weeks.
The Dow Jones Industrial Average gained 1.2% to 23,719.37, the highest in almost four weeks.
The Nasdaq Composite Index increased 0.8% to 8,153.57, the highest in almost four weeks.
The MSCI All-Country World Index climbed 1.6% to 469.59, the highest in almost four weeks.
Currencies
The Bloomberg Dollar Spot Index sank 0.8% to 1,247.32.
The Japanese yen strengthened 0.4% to 108.41 per dollar.
The euro gained 0.7% to $1.0934.
The British pound rose 0.7% to $1.2471, the strongest in more than three weeks.
Bonds
The yield on two-year Treasuries dipped three basis points to 0.23%.
The yield on 10-year Treasuries decreased five basis points to 0.72%.
Germany’s 10-year yield declined four basis points to -0.35%, the largest fall in more than a week.
Britain’s 10-year yield declined three basis points to 0.306%.
Commodities
West Texas Intermediate crude fell 6.3% to $23.50 a barrel.
Gold strengthened 2.1% to $1,684.38 an ounce, the highest in more than seven years.
–With assistance from Katherine Greifeld and Brian Chappatta.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Miracles are not contrary to nature, but only contrary to what we know about nature.
                                                                        -Saint Augustine, 354 AD-430 AD

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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com