August 18, 2020 Newsletter

Dear Friends,

Tangents:
August 18, 1920:  US, 19^th amendment to the Constitution is  ratified, giving women the right to vote.

From The NY Times today:
A century ago today, the United States ratified the 19th Amendment, enshrining a woman’s right to vote in the Constitution. But the decades-long struggle didn’t end there

• Here’s a visual history of the suffragist movement, which coincided with the birth of photography.
• Black suffragists recognized the power of photographs as a political tool and crafted images that became critical documents for insisting on racial equity and agency.
• Black suffragists recognized the power of photographs as a political tool and crafted images that became critical documents for insisting on racial equity and agency.

On Aug. 18, 1963, James Meredith became the first black to graduate from the University of Mississippi. Go to article »

Escape to the enchanting Italian village of Panicale, which looks straight out of a fairy tale. –The NY Times.

Ten American towns that feel like Europe. –Bloomberg.

PHOTOS OF THE DAY

Lightning illuminates the sky over the eastern span of the Bay Bridge as a storm passed through the area in San Francisco, USA.
CREDIT: AVILA FONZAL EZ/SAN FRANCISCO CHRONICLE VIA AP
An aerial view taken in Mauritius shows the MV Wakashio bulk carrier, belonging to a Japanese company but Panamanian-flagged, that had run aground and broke into two parts near Blue Bay Marine Park.
CREDIT: AFP VIA GETTY IMAGES

A trio of sleepy owls have a slow start to the day as they sleep huddled together on a branch. The three spotted owlets were huddled together to warm themselves in the morning sunlight at Ranthambore National Park in Rajasthan, India. Engineer Ameya Marathe, 28, who has a textiles manufacturing business with wildlife photography as a hobby and passion said “The are commonly found in India, however getting this particular pose where they all sitting together in a group and sharing warmth is a rare sight.” “As we were driving through the forest, our safari guide came across a tree branch on which they were sitting.” “After a few minutes of taking their photo, one of the owls looked toward me for few seconds giving me an opportunity also capture this image.
CREDIT: AMEYA MARATHE/SOLENT NEWS & PHOTO AGENCY

Mist at Colmers Hill near Bridport, Dorest, UK at sunrise after a weekend of rain and warm temperatures.
CREDIT: DAVID THOMPSON/SOLENT NEWS & PHOTO AGENCY
Market Closes for August 18^th , 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1982, as a bull market suddenly materialized out of nowhere, daily trading volume on the New York Stock Exchange exceeded 100 million shares for the first time, with 132,681,120 shares changing hands.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities closed lower Tuesday, while U.S. stocks rose to a record amid an ongoing tech-driven rally.
The S&P/TSX Composite Index fell 0.2%, with health care, energy and financials dragging down stocks in Toronto.
On the deal front, Sun Life Financial Inc. is in advanced talks to acquire Crescent Capital Group, the $28 billion credit manager co-founded by Milwaukee Brewers co-owner Mark Attanasio, according to people with knowledge of the matter.
Shares of waste management company GFL Environmental Inc. fell 9% after a New York hedge fund released a report questioning its accounting and its “aggressive and opaque business model.”
Chrystia Freeland’s appointment as Canada’s new finance minister puts one of Justin Trudeau’s most trusted aides in the job of overseeing the nation’s economic recovery and gives the prime minister more leeway to reset his government’s agenda.
Commodities
* Western Canada Select crude oil traded at an $11.50 discount to West Texas Intermediate
* Spot gold rose 1% to about $2,004 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.4% to C$1.3167 per U.S. dollar
* The 10-year government bond yield fell 2.3 basis points to 0.563%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 0.2 percent at 16,626.06 in Toronto. The move follows the previous session’s increase of 0.9 percent. Brookfield Asset Management Inc. contributed the most to the index decline, decreasing 2.4 percent. B2Gold Corp. had the largest drop, falling 7.0 percent.
Today, 132 of 221 shares fell, while 89 rose; 5 of 11 sectors were lower, led by financials stocks.
Insights
* The index advanced 2.9 percent in the past 52 weeks. The MSCI AC Americas Index gained 17 percent in the same period
* The S&P/TSX Composite is 7.5 percent below its 52-week high on Feb. 20, 2020 and 48.8 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 0.8 percent in the past 5 days and rose 3.1 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.3 on a trailing basis and 24.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.54t
* 30-day price volatility fell to 10.63 percent compared with 10.77 percent in the previous session and the average of 13.14 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -24.2177| -0.5| 5/20
Energy | -12.6442| -0.6| 3/21
Materials | -10.9436| -0.4| 18/32
Health Care | -2.0373| -1.3| 2/7
Real Estate | -0.1084| 0.0| 15/12
Utilities | 0.0702| 0.0| 11/5
Consumer Staples | 0.5948| 0.1| 7/4
Industrials | 1.9155| 0.1| 12/16
Consumer Discretionary | 2.0080| 0.4| 5/8
Communication Services | 5.6648| 0.7| 6/2
Information Technology | 9.6418| 0.6| 5/5
US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — U.S. stocks completed the fastest-ever return to a record after a drop of at least 20%, surpassing February highs for the first time since the pandemic upended financial markets. The dollar fell to the lowest in more than two years, while Treasuries advanced.
The S&P 500 eked out a gain, to cap a 52% rally from its March 23 low. The gauge had failed to breach that level in three of the past four sessions. Amazon.com Inc. paced the gains Tuesday, pushing its rally this year to 79%. Homebuilders also surged on strong data. Lennar Corp. and D.R. Horton Inc. boast returns of at least 148% since the stock-market bottom.
Massive stimulus injections and a surge in technology companies have driven the rebound in American stocks from a pandemic-induced selloff. Daily coronavirus case counts, positive test rates and hospitalizations look to be improving — as evidence grows that the peak of the flareup across Sunbelt states is in the past. While stimulus talks  have stalled, better-than-feared economic data and corporate earnings have instilled optimism that a recovery is taking shape.
“Momentum is currently positive as the actions of the Fed and other major central banks continue to drive yield-seeking investors into racier equities and away from bonds,” said Fawad Razaqzada, an analyst at ThinkMarkets. “While things could look a lot different in the not-too-distant future, the short-term picture certainly looks bullish right now.”
The fact that the benchmark is breaking through a record may be psychologically interesting, but these milestones should be taken in stride, according to Chris Larkin, managing director of trading and investment product at E*Trade Financial.
“It may hold some short-term importance for traders who have built this into their strategy, but for the most part, anybody participating in the market should look past these relatively arbitrary moves and focus more on fundamentals,” he said.
As the S&P 500 pushes higher, one indicator may boost the confidence of equity bulls. The benchmark’s cumulative advance- decline line is still near its peak. That signals broad participation is supporting the rally, as technical analysts often suggest breadth leads price, and any near-term pullback will be shallow and short. For more market commentary, see the MLIV blog.
Some other corporate highlights:
* Walmart Inc., whose shoppers were a major beneficiary of stimulus checks earlier this year, is bracing for a second half where pandemic-hit shoppers without continued government relief may be forced to go it alone.
* Home Depot Inc. reported sales growth that was more than double the already brisk rate analysts had been expecting, but rising expenses meant flat margins in an otherwise standout quarter.

Here are some key events coming up:
* Target Corp. and Nvidia Corp. report on Wednesday. Results from Alibaba Group Holding Ltd. and Qantas Airways Ltd. are due Thursday.
* Minutes of the latest FOMC meeting are due Wednesday.
* The EIA’s crude oil inventory report comes out Wednesday.
* The Joint Ministerial Monitoring Committee — the panel that reviews the OPEC+ agreement — is due to meet on Wednesday.
* U.S. jobless claims for the week ended Aug. 15 are due Thursday.
* China’s loan prime rate is due Thursday.
* Euro-area PMIs will be released on Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index dipped 0.6%.
* The MSCI Asia Pacific Index rose 0.5%.
Currencies
* The Bloomberg Dollar Spot Index declined 0.5%.
* The euro increased 0.5% to $1.1934.
* The Japanese yen appreciated 0.6% to 105.39 per dollar.
Bonds
* The yield on 10-year Treasuries dipped two basis points to 0.66%.
* Germany’s 10-year yield decreased one basis point to -0.46%.
* Britain’s 10-year yield rose less than one basis point to 0.219%.
Commodities
* The Bloomberg Commodity Index climbed 0.6%.
* West Texas Intermediate crude decreased 0.7% to $42.58 a barrel.
* Gold strengthened 0.8% to $2,001.59 an ounce.
–With assistance from Andreea Papuc, Yakob Peterseil, Lynn
Thomasson, Sophie Caronello, Claire Ballentine, Vildana Hajric, Katherine Greifeld and Andrew Cinko.
Have a great night.

Be magnificent!

As ever,

Carolann

The young man knows the rules, but the old man knows the exceptions.
                                                -Oliver Wendell Holmes , 1809-1894

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