July 2, 2021 Newsletter

Dear Friends,

Tangents: Halfway Day – 182^nd Day of the Year.
Palio Horse Race, Italy.
On July 2, 1937, aviator Amelia Earhart and navigator Fred Noonan disappeared over the Pacific Ocean while attempting to make the first round-the-world flight at the equator. Go to article »
1776~US Declaration of Independence.
1964~Civil Rights Act.
Herman Hesse, writer, b. 1887.
Jerry Hall, model, b. 1956.
Lindsay Lohan, actor, b. 1986.

A new continent. 

New Electric Airplane to Make First Flight This Year.  It can carry nine passengers with a range of 650 miles.

What It’s Like to Visit London Now:  The city is slowing its reopening to tourism. Here’s a local’s take on what to expect when you get there.
 
Richard Branson will try to beat Jeff Bezos to space.  This is how “keeping up with the Joneses” goes when the Joneses are really, really rich. 

At 82, Wally Funk is finally going to space.

Aspirin might cut cancer deaths by 20%.

AI may not write well, but it can create art.

PHOTOS OF THE DAY

In Stevns, in the Danish countryside south of Copenhagen, Jacob Shaw, a cellist and the head of a music school, comes to play with other musicians to a herd of cattle. Unable to preform during the pandemic, he turned to this unusual audience. The experience was so enjoyable that he continues it even after the reopening of the theaters.
CREDIT: JONATHAN NACKSTRAND/AFP VIA GETTY IMAGES

New eruption of the Etna volcano in Sicily. Strombolian activity at the SE Crater gradually changed to a lava fountain
CREDIT: MARCO RESTIVO/BARCROFT MEDIA VIA GETTY IMAGES

Detail of a skull in the costumes of a participant in a ceremony on the occasion of the Zenith Pass of the Sun, in the Zocalo of Mexico City
CREDIT: CARLOS RAMIREZ/EPA-EFE/SHUTTERSTOCK

British artist Damien Hirst attends the opening of his new show “Cherry Blossoms” at the Cartier Foundation for Contemporary Art in Paris
CREDIT: AP PHOTO.FRANCOIS MORI

Queen Elizabeth II seen driving herself in her Range Rover car as she attends day 2 of the Royal Windsor Horse Show in Home Park, Windsor Castle
CREDIT: MAX MUMBY

Queen Elizabeth II at the Royal Windsor Horse Show
CREDIT: STEVE PARSONS/PA WIRE

Market Closes for July 2^nd, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1890, in a backlash against the monopolistic excesses of the “robber barons,” the Sherman Anti-Trust Act, authorizing the U.S. Department of Justice to investigate and break up giant industrial monopolies, became law.
Canada
By Julia Fanzeres
(Bloomberg) — Canadian equities were higher following the Canada Day holiday, with traders digesting both Canadian and U.S. economic data. The S&P/TSX Composite Index rose 0.5%. Blackberry led the information technology sector while bank stocks gained, leading the financial sector. May’s economic data showed an increase in imports, recovering from a drop last month, while exports dropped for a second month. Specifically, shipments abroad declined for three of the past four months.
Commodities
* Western Canadian Select crude oil traded at a $13.90 discount to West Texas Intermediate
* Spot gold rose 0.7% to $1,790 an ounce
FX/ Bonds
* The Canadian dollar was flat at C$1.2393 per U.S. dollar
* The 10-year Canada government bond yield fell 1 basis point to 1.38%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose 0.3 percent at 20,226.11 in Toronto. The move was the biggest since rising 0.8 percent on June 21 and follows the previous session’s little change. Today, financials stocks led the market higher, as 10 of 11 sectors gained; 152 of 231 shares rose, while 71 fell. Enbridge Inc. contributed the most to the index gain, increasing 1.1 percent. Novagold Resources Inc. had the largest increase, rising 5.8 percent.
Insights
* So far this week, the index was little changed
* The index advanced 30 percent in the past 52 weeks. The MSCI AC Americas Index gained 41 percent in the same period
* The S&P/TSX Composite is 0.6 percent below its 52-week high on July 2, 2021 and 32 percent above its low on June 30, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.3 on a trailing basis and 16.9 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$3.17t
* 30-day price volatility fell to 6.84 percent compared with 7.00 percent in the previous session and the average of 8.39 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 13.9999| 0.2| 21/5
* Consumer Staples | 10.7484| 1.5| 8/5
* Energy | 10.4667| 0.4| 14/8
* Materials | 10.2600| 0.4| 33/16
* Industrials | 8.3780| 0.4| 20/10
* Real Estate | 5.1516| 0.8| 22/4
* Utilities | 2.7937| 0.3| 9/6
* Information Technology | 2.7877| 0.1| 9/3
* Communication Services | 1.8248| 0.2| 5/2
* Consumer Discretionary | 0.7454| 0.1| 9/4
* Health Care | -6.6338| -2.4| 2/8
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Enbridge | 7.3260| 1.1| -30.7| 23.2
* Couche-Tard | 7.2870| 2.8| 5.1| 7.9
* Royal Bank of | | | |
* Canada | 4.3600| 0.4| -42.0| 20.5
* Suncor Energy | -2.1990| -0.7| -16.6| 38.1
* Tilray | -3.3900| -5.1| -30.2|n/a
* Shopify | -3.6270| -0.3| -42.7| 25.8

US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — Stocks climbed on speculation the economy is recovering at a pace that won’t make the Federal Reserve imminently take away the liquidity punch bowl that has helped push the market to a record. In a feat not seen since 1997, the S&P 500 closed at an all-time high for a seventh straight day.  That was after data showed U.S. job growth surged the most in 10 months, while the unemployment rate edged up to 5.9%.  The report bolstered views the central bank won’t rush to taper its stimulus program any time soon.  Tech shares consolidated this week’s leadership position, while economically sensitive companies underperformed. The dollar fell alongside 10-year Treasury yields. “Today’s jobs report was overall stronger, but not strong enough to raise inflation and tightening concerns,” wrote Fawad Razaqzada, an analyst at ThinkMarkets.  “It keeps the ‘goldilocks’ scenario intact for stocks, and encourages dollar longs to ease off the gas ahead of the long weekend break.”

More comments:
* Mike Loewengart, managing director of investment strategy at E*Trade Financial:
** “Though there’s a combination of good and mediocre in the read today, it’s doubtful that this will move the needle on the Fed’s stance or timing for moving to tighten policy.”
* Seema Shah, chief strategist at Principal Global Investors:
** “While the stronger-than-expected payroll number signals a continued buoyant recovery, the rise in unemployment rate suggests some slack in the market and, therefore, hopefully some respite for the Fed hawks.”
* Jason Pride, chief investment officer of private wealth at Glenmede:
** “Today’s report likely does not significantly change the Fed’s calculus here, as the U.S. labor market is far from its ‘full employment’ mandate.”

Among the corporate highlights, International Business Machines Corp. sank as President Jim Whitehurst is stepping down after three years at the century-old tech company.
Lordstown Motors Corp. is being probed by the U.S. Justice Department in relation to claims that the company exaggerated potential sales of its electric Endurance pickup truck, a person familiar with the matter said. The shares tumbled.

These are some of the main moves in markets:
Stocks
* The S&P 500 rose 0.8% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.2%
* The Dow Jones Industrial Average rose 0.4%
* The MSCI World index rose 0.5%
* The Russell 2000 Index fell 1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.5%
* The euro rose 0.1% to $1.1865
* The British pound rose 0.5% to $1.3836
* The Japanese yen rose 0.5% to 111.02 per dollar
Bonds
* The yield on 10-year Treasuries declined three basis points to 1.42%
* Germany’s 10-year yield declined three basis points to -0.24%
* Britain’s 10-year yield declined three basis points to 0.70%
Commodities
* West Texas Intermediate crude fell 0.1% to $75.15 a barrel
* Gold futures rose 0.6% to $1,788.30 an ounce
–With assistance from Sunil Jagtiani, Yakob Peterseil, Lu Wang and Anchalee Worrachate.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

I believe the first test of a truly great man is his humility. -John Ruskin, 1819-1900.

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