May 27, 2021 Newsletter

Dear Friends,

Tangents:
1937~Golden Gate Bridge opened in san Francisco.
1930~Scotch tape patented.
Rachel Carson, b. 1907
On May 27, 1964, independent India’s first prime minister, Jawaharlal Nehru, died.  Go to article »

A giant tortoise thought extinct 100 years ago is living in Galapagos, Ecuador says.  And it looks SO smug about it, too. 

Scientists are zapping clouds with electricity to make rain.  Charles Hatfield would be proud.

A woman — Laurence des Cars — will lead the Louvre for the first time in its 228-year history.

Here’s the New York Times summer reading list. 

PHOTOS OF THE DAY

United States Air Force Academy graduates cheer as the United States Air Force Thunderbirds fly over the graduation for the Class of 2021 at Falcon Stadium in Colorado Springs
CREDIT: MICHAEL CIAGLO/GETTY IMAGES

Early morning mist partly covers up surrounding trees after sunrise in Wiltshire
CREDIT: STEVEN PASTON

Angora goats are seen in a facility after they were taken under preservation to protect their gene source for breeding in Eskisehir, Turkey
CREDIT: ALI ATMACA/ANADOLU AGENCY

Market Closes for May 27^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1933, President Franklin D. Roosevelt signed into law the Securities Act of 1933, requiring all issuers of stocks and bonds to publish a prospectus disclosing risks, conflicts of interest, and ownership positions
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose for a third session with auto-parts makers including Martinrea, Linamar, and Magna all rallying. The S&P/TSX Composite Index gained 0.2%, with consumer discretionary and health care among leaders. Technology shares fell. Canada’s biggest banks are signaling that financial issues from the Covid-19 crisis are largely in the rear-view mirror in North America — and earlier than analysts had expected.
Commodities
* Western Canadian Select crude oil traded at a $14.00 discount to West Texas Intermediate
* Spot gold rose 0.1% to $1,897.85 an ounce
FX/Bonds
* The Canadian dollar rose 0.5% to C$1.2066 per U.S. dollar
* The 10-year Canada government bond yield rose 3.6 basis points to 1.488%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.1 percent, or 28.94 to 19,774.41 in Toronto. Canadian National Railway Co. contributed the most to the index gain, increasing 2.7 percent. Denison Mines Corp. had the largest increase, rising 11.4 percent. Today, 121 of 229 shares rose, while 104 fell; 6 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index rose 3.5 percent
* So far this week, the index rose 1.3 percent
* The index advanced 29 percent in the past 52 weeks. The MSCI AC Americas Index gained 40 percent in the same period
* The S&P/TSX Composite is 0.3 percent below its 52-week high on May 27, 2021 and 32.4 percent above its low on June 15, 2020
* The S&P/TSX Composite is up 1.8 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 24.2 on a trailing basis and 17.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.1t
* 30-day price volatility fell to 9.66 percent compared with 9.88 percent in the previous session and the average of 9.14 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 25.5661| 0.4| 19/8
* Industrials | 12.7221| 0.6| 17/13
* Consumer Discretionary | 11.2678| 1.4| 10/2
* Energy | 9.8319| 0.4| 15/7
* Health Care | 1.6888| 0.6| 6/4
* Real Estate | 0.8329| 0.1| 12/12
* Utilities | -1.1353| -0.1| 5/11
* Consumer Staples | -1.7879| -0.2| 5/8
* Communication Services | -5.7876| -0.6| 2/6
* Materials | -12.0768| -0.5| 27/25
* Information Technology | -12.1678| -0.6| 3/8

US
By Rita Nazareth and Claire Ballentine
(Bloomberg) — Stocks that stand to benefit the most from an economic rebound rallied after solid data spurred a decline in pandemic darlings such as technology companies. Treasuries retreated. Industrial, financial and commodity shares led gains in the S&P 500. The Russell 2000 of small caps outperformed major equity benchmarks, while the tech-heavy Nasdaq 100 dropped. A news report that President Joe Biden will unveil a budget that would see federal spending jump to $6 trillion in the coming fiscal year also helped sentiment.  In late trading, Salesforce.com Inc., the top maker of cloud-based customer relations software, jumped on a strong profit forecast. Equities headed toward their fourth straight monthly rally as prospects for an economic rebound tempered inflation worries. Treasury Secretary Janet Yellen said she sees the burst in prices as temporary, though likely to last through the end of 2021.  Data showed jobless claims dropped to a fresh pandemic low, while orders for business equipment climbed more than forecast. Pending home sales fell, but analysts highlighted underlying buyer interest that could translate into a pickup in contract signings. “We’re seeing that kind of economic data underscore what we keep calling the recovery trade — a move back into cyclical and defensive stocks, companies that are poised to do better with a reopening of the economy,” said Greg Bassuk, chief executive officer at AXS Investments. “Value has a much stronger path for gains going forward.”

Some corporate highlights:
* Reddit favorite AMC Entertainment Holdings Inc. hit a record $13 billion in market value.
* Boeing Co. climbed as Airbus SE’s ambitious output goal spurred optimism for a recovery in global aviation.
* Nvidia Corp. gave a bullish estimate on demand for chips used in gaming PCs, data centers and cryptocurrency mining.

The Russell 2000 has lost ground to the Nasdaq 100 this quarter, but it has valuation on its side. The forward price- earnings spread between the small-cap and tech-heavy gauges has narrowed to below the five-year average.  And while the Russell 2000 value/growth ratio has ebbed in the latter half of May, the relative strength of value suggests that small-cap stocks can continue to be big beneficiaries of the reopening recovery.
These are 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 fell 0.3%
* The Dow Jones Industrial Average rose 0.4%
* The Russell 2000 Index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.2198
* The British pound rose 0.6% to $1.4203
* The Japanese yen fell 0.6% to 109.79 per dollar
Bonds
* The yield on 10-year Treasuries rose three basis points to 1.60%
* Germany’s 10-year yield advanced three basis points to -0.17%
* Britain’s 10-year yield advanced six basis points to 0.81%
Commodities
* West Texas Intermediate crude rose 0.9% to $67 a barrel
* Gold futures fell 0.2% to $1,901 an ounce
–With assistance from Andreea Papuc, Robert Brand, Namitha Jagadeesh, Heather Burke and Nancy Moran.
Have  a wonderful evening.

Be magnificent!
As ever,

Carolann

In nature there are no rewards or punishments; there are consequences. -Horace Annesley Vachell, 1861-1955.

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