June 1, 2021 Newsletter

Dear Friends,

Tangents: Procession des Bouteilles, France.

1533~ Anne Boleyn is crowned Queen of England,  Three years later on 19 May 15636, she was beheaded for treason.  Modern historians view the charges against her, which included adultery, incest and plotting to kill the king, as unconvincing.

1967~Sft. Pepper’s Lonely Hearts Club Band released.  “Will you still need me?  Will you still feed me?  when I’m 64….-The Beatles.

1980~ CNN debuted.

2009 General Motors filed for Chapter 11, becoming the largest U.S. industrial company to enter bankruptcy protection. Go to article »

Dark energy survey releases most precise look at the universe’s evolution. 

You Can Travel to Italy Again. Here’s a Delightful Way to Get Reacquainted: These hiking trails on the Italian Riviera—newly reopened to foreign visitors—are designed to let you tune into both natural and man-made sounds, experiencing the Mediterranean as never before.

A pool can be soothing before you wade into its waters. Take a look at these aerial photos

PHOTOS OF THE DAY

A giant fresco mural by French street artist and photographer Jean Rene aka JR is displayed on the wall of a building in Paris, France
CREDIT: CHESNOT/GETTY IMAGES

Charlotte Blake climbs the Maelstrom wall of a  cliff on Bruny Island, Tasmania, in this entry to annual CVCEPHOTO Mountain Activity Photography Contast 2021
CREDIT:MEDIADRUMIMAGES/LACHLAN GARDINER

Luke Jerram’s internally lit installation of a giant globe called ‘Gaia’ rotates, aiming to replicate a sense of the ‘Overview Effect’ That astronauts experience when they see our home earth from space. It is housed at the Royal Naval College in Greenwich, London.
CREDIT: JEFF GILLBERT FOR THE TELEGRAPH

Market Closes for June 1^st, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1932, Benjamin Graham published the first of a three-part series of articles in Forbes Magazine in which he pointed out that “a great number of American businesses are quoted in the market for much less than their liquidating value; that in the best judgment of Wall Street, these businesses are worth more dead than alive.”
Canada
By Michael Bellusci and Aoyon Ashraf
(Bloomberg) — Canada’s main stock index rose above 20,000 for the first time Tuesday, aided by a gain in energy shares, a rotation to value stocks and global economies emerging from the depths of Covid-19 lockdowns. The S&P/TSX Composite Index jumped as much as 1.5% before paring those gains to close up 1.2% at 19,976.01. It was the biggest gain in two months. Energy shares led the way, with Inter Pipeline Ltd. gaining almost 8% after Pembina Pipeline Corp. agreed to acquire the Calgary-based pipeline company. The index has risen 14.6% this year, with banks, oil producers and health-care companies at the helm. Canada’s technology sector, led by e-commerce star Shopify Inc., shone through the early months of Covid-19 lockdowns, but have lagged behind in 2021 as investors have turned away from growth stocks to capitalize on economic reopenings. Massive government and central bank stimulus has helped propel stocks higher, some Canadian money managers said. Ryan Bushell of Newhaven Asset Management said investors shouldn’t doubt the “power of the coordinated action of global central banks and governments.” “I wouldn’t be surprised that stocks continue to go up here,” Jean-François Tardif, president of Timelo Investment Management, said on BNN Bloomberg.
Canadian earnings have also been strong, prompting Bank of Montreal’s chief investment strategist to affirm a year-end price target of 20,500 for the TSX.  Brian Belski says BMO’s year-end earnings-per-share target of C$1,180 could prove low if results continue on their upward trajectory this year. “First-quarter earnings season has been another blow-out quarter, with S&P/TSX companies beating estimates by almost 8% on average, marking the fourth  consecutive quarter of record-setting beats,” Belski said in a note to clients. Technicals are also pointing to further gains for the TSX, according to Canaccord Genuity Corp. “A new short-term (2-4 week) rally phase is underway as the TSX Composite just broke out to new highs out of a multiweek-long consolidation,” quantitative and technical analyst Javed Mirza told clients in a note. “First resistance and next upside technical target near 20,500,” Mirza added.

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose 1.2 percent at 19,976.01 in Toronto. The move was the biggest since rising 1.5 percent on April 1 and follows the previous session’s decrease of 0.6 percent. Today, energy stocks led the market higher, as 10 of 11 sectors gained; 165 of 229 shares rose, while 59 fell. Shopify Inc. contributed the most to the index gain, increasing 2.1 percent. BlackBerry Ltd. had the largest increase, rising 12.3 percent.

Insights
* In the past year, the index had a similar or greater gain 14 times. The next day, it advanced 10 times for an average 0.6 percent and declined four times for an average 1 percent
* This quarter, the index rose 6.8 percent
* The index advanced 31 percent in the past 52 weeks. The MSCI AC Americas Index gained 39 percent in the same period
* The S&P/TSX Composite is 0.2 percent below its 52-week high on June 1, 2021 and 33.8 percent above its low on June 15, 2020
* The S&P/TSX Composite is up 2.1 percent in the past 5 days and rose 4.5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.2 on a trailing basis and 17 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 rose to 9.71 percent compared with 9.59 percent in the previous session and the average of 9.31 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 71.4858| 2.9| 22/1
* Financials | 46.1493| 0.7| 19/8
* Materials | 40.5734| 1.6| 44/6
* Information Technology | 33.5533| 1.8| 6/4
* Industrials | 20.7842| 0.9| 19/10
* Consumer Discretionary | 15.2020| 1.9| 12/1
* Communication Services | 8.0455| 0.8| 7/1
* Consumer Staples | 5.9406| 0.8| 8/5
* Real Estate | 3.9395| 0.6| 17/9
* Utilities | 0.0702| 0.0| 7/9
* Health Care | -0.7201| -0.3| 4/5

US
By Jennifer Bissell-Linsk and Vildana Hajric
(Bloomberg) — U.S. stocks inched lower as investors assessed the impact of another economic report on Federal Reserve monetary policy. The S&P 500 fluctuated between gains and losses after U.S. manufacturing data topped estimates while also showing some weakness in employment figures.  A measure of factory activity in May rose on stronger order growth. However, manufacturers are struggling because of supply shortages and labor constraints. Energy shares were among the best performing Tuesday as the OPEC+ alliance agreed to hike output in July and gave a bullish forecast. WTI crude futures rose to their highest in more than two years. The dollar ended little changed, while Treasures, gold and Bitcoin slipped. Global stocks are starting off the month near record highs, underpinned by a recovery from the health crisis and ample liquidity. Still, a raft of strong readings are stoking concerns of inflation and that central banks will withdraw support earlier than anticipated.
The employment figures from the ISM manufacturing report could be an indicator of a tight job market ahead of key American jobs data expected Friday. Federal Reserve Governor Lael Brainard said there are risks on both sides of monetary policy as the U.S. economy surges ahead while millions of people are unemployed. Peter Tchir, head of macro strategy at Academy Securities Inc., said on Bloomberg TV that he tries to ignore most of the current data in favor of focusing on future expectations.  “We’re going to see more jobs,” Tchir said. “It seems awkward to dismiss current data but really it’s not telling us anything we don’t already know.  So it’s really trying to anticipate what data’s going to look like five, six months down the road. I think it’s going to be very, very positive and this engine of growth is going to continue.”

Some corporate highlights:
* One-fifth of U.S. beef capacity was wiped out in the JBS cyberattack
* Mudrick Capital Management is said to have sold its entire AMC stake after an equity raise
* J&J must pay a $2.1 billion talc award after the Supreme Court rejected an appeal
* KKR and CD&R plan to take Cloudera private in a deal valued at about $5.3 billion

Here are key events to watch this week:
* Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak Wednesday
* U.S. employment report for May on Friday

These are some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 fell 0.2% to the lowest since May 24
* The Dow Jones Industrial Average rose 0.1%, climbing for the fourth straight day, the longest winning streak since May 7
* The MSCI World index rose 0.3% to a record high
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%, more than any closing gain since May 26
* The euro was little changed at $1.2219
* The British pound slipped 0.4%, more than any closing loss since May 19
* The Japanese yen was little changed at 109.49 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points to 1.61%
* Germany’s 10-year yield was little changed at -0.18%
* Britain’s 10-year yield advanced three basis points to 0.83%
Commodities
* West Texas Intermediate crude rose 2.4% to the highest on record
* Gold futures fell 0.2% to $1,902 an ounce
–With assistance from Claire Ballentine, Nancy Moran and Andreea Papuc.
Have a wonderful evening.

Be magnificent!

As ever,

Carolann

In the midst of movement and chaos, keep stillness inside of you. –Deepak Chopra, b. 1946.

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