July 21, 2021 Newsletter

Dear Friends,

Tangents:
1861~Battle of Bull Run

On July 21, 1925, the ”monkey trial” ended in Dayton, Tenn., with John T. Scopes convicted of violating state law for teaching Darwin’s theory of evolution. (The conviction was later overturned.) Go to article »

Marshall McLuhan, writer, b.1911
Ernest Hemingway, writer, b. 1899
Isaac Stern, musician, b. 1920
Robin Williams,, comic/actor, b.1952
Yusuf Islam (Cat Steven), singer, b. 1948

Most people are alive in an earlier time, but you must be alive in your own time. -Marshall McLuhan, 1911-1980.

Courage is grace under pressure. -Ernest Hemingway, 1899-1961.

Late-night hosts had fun with the Amazon founder Jeff Bezos’s brief trip to space on Tuesday. Stephen Colbert welcomed his audience by saying, “So happy you could all join us tonight for a momentous day in the history of some people having way too much money.”

The hosts couldn’t resist talking about what Bezos was wearing when he returned — a cowboy hat.
“I guess space turns you into Kenny Chesney.” — JIMMY FALLON

“You know you’re rich when you put that on and everyone who works for you goes, ‘Oh, it looks great, yeah. You’re a man of the people, just going to space.’” — JIMMY FALLON

“A cowboy hat? So he went into space and somehow became extra divorced.” — STEPHEN COLBERT

PHOTOS OF THE DAY

Archie and Veronika looking at each other on the boat) A rescued brown bear and his owner can be seen fishing together on a boat. Archie the brown bear and Veronika Dichka like to spend time fishing on the lake in their native Novosibirsk, Russia
CREDIT: VERONIKA DICHKA / CATERS NEWS AGENCY

Pro Athlete Tom Court commutes in style across the Solent on a Fliteboard – the watercraft of the future
CREDIT:FINNBARR WEBSTER/GETTY IMAGES FOR FLITEBOARD

People celebrate in Brisbane, Australia, Wednesday, following an announcement by the International Olympic Committee that Brisbane was picked to host the 2032 Olympics. The Australian city was the inevitable winner of a one-candidate race steered by the IOC to avoid rival bids
CREDIT: JASON O’BRIEN/AAP IMAHE VIA AP

Market Closes for July 21^st, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1933, as Wall Street began to digest the implications of President Franklin D. Roosevelt’s “New Deal”—including the Glass-Steagall Act, enacted just over one month earlier—the Dow Jones Industrial Average suffered its ninth-worst daily percentage loss, dropping 7.8% (or 7.55 points) to close the day at a dismal 88.71.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equities rose for a second day as U.S. markets advanced amid a slew of solid corporate profits. The S&P/TSX Composite index rose 0.8% in Toronto, bringing the two-day climb to 1.9%. Energy and health care stocks were the best performers, while communication services sector was the worst. Meanwhile, Lumber futures rose the most in more than a year on concern that wildfires in western Canada will reduce supply and spur more curtailments at sawmills.
Commodities:
* Western Canadian Select crude oil traded at a $13.50 discount to West Texas Intermediate
* Spot gold fell 0.4% to $1,803.91 an ounce
FX/ Bonds:
* The Canadian dollar rose 0.9% to C$1.2567 per U.S. dollar
* The 10-year Canada government bond yield rose to about 5 basis points to 1.226%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.8 percent, or 167.34 to 20,110.05 in Toronto. Shopify Inc. contributed the most to the index gain, increasing 1.9 percent. SilverCrest Metals Inc. had the largest increase, rising 7.6 percent. Today, 188 of 231 shares rose, while 43 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index fell 0.3 percent
* The index advanced 24 percent in the past 52 weeks. The MSCI AC Americas Index gained 35 percent in the same period
* The S&P/TSX Composite is 1.3 percent below its 52-week high on July 7, 2021 and 30.4 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is little changed in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.1 on a trailing basis and 16.5 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$3.14t
* 30-day price volatility rose to 9.38 percent compared with 9.08 percent in the previous session and the average of 7.52 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 58.2587| 0.9| 26/2
* Energy | 38.5997| 1.6| 22/1
* Information Technology | 28.6905| 1.2| 7/5
* Materials | 26.1824| 1.1| 49/4
* Industrials | 15.6189| 0.7| 25/5
* Consumer Discretionary | 4.6656| 0.6| 12/1
* Real Estate | 3.8198| 0.6| 20/6
* Health Care | 3.7561| 1.5| 10/0
* Utilities | 0.3412| 0.0| 12/4
* Consumer Staples | -3.9875| -0.5| 2/11
* Communication Services | -8.6157| -0.9| 3/4
================================================================
| | |Volume VS| YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move|% Change | (%) | (%)
================================================================
* Shopify | 29.1000| 1.9| 27.4| 37.2
* Brookfield Asset | | | |
* Management | 16.6000| 2.7| -11.2| 22.6
* Canadian Natural | | | |
* Resources | 9.5660| 2.9| -37.2| 34.3
* Brookfield | | | |
* Infrastructure | -1.3560| -1.0| -34.9| 8.1
* BCE | -1.3840| -0.4| -7.2| 13.4
* Rogers Communications | -6.1660| -3.8| 275.9| 8.7

US
By Rita Nazareth and Claire Ballentine
(Bloomberg) — Stocks climbed as a slew of solid corporate profits took the focus off concerns about the economic impact of coronavirus flareups around the globe. The dollar fell, while Bitcoin surged. After a bruising selloff driven by worries over a peak in earnings and a slowdown in growth momentum, the S&P 500 notched its biggest back-to-back advance in two months.  Once again, the gains were led by companies that stand to benefit the most from a reopening of the economy, such as commodity, financial and industrial shares.  A gauge of small caps rose almost 2%. Bitcoin soared after some prominent voices discussed prospects for the digital currency at the “B Word” conference, hosted by the Crypto Council for Innovation.  Elon Musk, the billionaire head of Tesla Inc., said his space exploration company SpaceX owns the digital token.  Ark Investment Management’s Cathie Wood urged firms to consider the “explosive” Bitcoin growth. Giants Verizon Communications Inc. and Coca-Cola Co. rose after better-than-estimated quarterly results.  Despite investor jitters on whether Covid-19 infections will upend a travel resurgence, United Airlines Holdings Inc. predicted profits ahead.
Meantime, Netflix Inc. retreated on a disappointing subscriber forecast. Traders are rewarding companies with better-than-expected results amid bets that the second quarter’s expected 70% earnings growth will mark the pinnacle of this expansion cycle. More than 85% of the S&P 500 firms reporting results so far have beaten analysts’ predictions, according to data compiled by Bloomberg.  For Michael Purves, chief executive officer at Tallbacken Capital Advisors, earnings forecasts for the benchmark have surged because of a “huge explosion” in profits at economically sensitive firms. “We may be getting back to a point where earnings matter a little bit more than they had,” said Matt Forester, chief investment officer of BNY Mellon’s Lockwood Advisors. “Company guidance is going to be very important as well.” Strategists from JPMorgan Chase & Co. and UBS Global Wealth Management urged clients to buy cyclicals as the economic recovery is just getting started. The “reopening of the economy is not an event but rather a process, which in our opinion is still not priced-in, and especially not now given recent market moves,” wrote JPMorgan strategists led by Dubravko Lakos-Bujas. “This does not signal the beginning of a down cycle.”

Other corporate highlights:
* Johnson & Johnson raised its annual adjusted earnings and revenue forecast as quarterly sales rebounded strongly from a year ago.
* Chipotle Mexican Grill Inc. climbed after better-than-expected results and sales guidance.
* Harley-Davidson Inc. tumbled after the motorcycle maker reported sales that slumped in every region but its home market.

Some key events to watch this week:
* European Central Bank rate decision Thursday
* Bank Indonesia rate decision Thursday
* U.S. existing home sales Thursday
* The Tokyo Summer Olympics begin Friday

Here are some of the main market moves:
Stocks
* The S&P 500 rose 0.8% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.8%
* The Dow Jones Industrial Average rose 0.8%
* The MSCI World index rose 1%
* The Russell 2000 Index rose 1.8%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.1800
* The British pound rose 0.7% to $1.3718
* The Japanese yen fell 0.4% to 110.27 per dollar
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 1.29%
* Germany’s 10-year yield advanced two basis points to -0.39%
* Britain’s 10-year yield advanced four basis points to 0.60%
Commodities
* West Texas Intermediate crude rose 4.4% to $70.19 a barrel
* Gold futures fell 0.4% to $1,804.40 an ounce
–With assistance from Andreea Papuc, Robert Brand and David Wilson.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

If you can’t tolerate critics, don’t do anything new or interesting. -Jeff Bezos, b. 1964.

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