January 20, 2022 Newsletter

Dear Friends,

Tangents:
On Jan. 20, 1981, Iran released 52 Americans held hostage for 444 days, minutes after the presidency had passed from Jimmy Carter to Ronald Reagan.  Go to article »
2009: Barack Obama is sworn in as the 44^th president of the United states, becoming the first African American to hold the office. 
Frederico Fellini, film maker, b. 1920.
Bill Maher, satirist, b. 1956.
Edwin “Buzz” Aldrin, astronaut, b. 1930.

Enormous coral reef discovered off the coast of Tahiti.  Did you know that only about 20% of the ocean floor has been mapped? There’s still so much left to sea.

A new species of tarantula discovered by Thai YouTube star.  Apparently, they live in the holes of bamboo plants.

Japan’s best castles to visit at least once.  A quiet stroll under blooming cherry blossoms, gazing at Japanese castles. I’ve officially found my next vacation destination. 

What is spacetime made of?

How close are we to Doomsday?

PHOTOS OF THE DAY

A surfer practising before the 2022 Billabong Pipeline Masters in Hawaii
CREDIT: Brian Bielmann/AFP/Getty Images

A section of Hadrian’s Wall near Hexham in northern England is illuminated in a photograph taken with a long exposure. This year marks the 1,900th anniversary of the start of the wall’s construction
CREDIT: Oli Scarff/AFP/Getty Images

The moon sets behind Willesborough windmill, which was built in 1869
CREDIT: Gareth Fuller/PA

Market Closes for January 20^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1870, the first known female-owned U.S. stock brokerage was launched, as sisters Victoria Woodhull and Tennie Claflin opened their Woodhull, Claflin & Co. at 44 Broad St. in Manhattan. Bedeviled by rumors that it was merely a front for Woodhull’s supposed lover, Commodore Cornelius Vanderbilt, the firm did not survive long. “It is probably only in the matrimonial line that women can become successful speculators,” sneered broker Henry Clews.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian consumer discretionary and materials equities led the S&P/TSX Composite lower Thursday.
The index fell for the third day, dropping 0.7%, or 146.98 to 21,058.18 in Toronto — its lowest closing level since Jan. 5.
Utility stocks gained and industrials were little changed, as 9 of 11 sectors lost and 179 of 241 shares fell.
Auto parts companies Martinrea International Inc. and Magna International Inc. each declined more than 4%.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.2%.
Stelco Holdings Inc. had the largest percentage drop, falling 6.3%, after CEO Alan Kestenbaum warned that the steel industry is “a falling knife” with excess supplies and rising inventories.
Insights
* This month, the index fell 0.8%
* So far this week, the index fell 1.4%, heading for the biggest decline since the week ended Dec. 3
* The index advanced 17% in the past 52 weeks. The MSCI AC Americas Index gained 14% in the same period
* The S&P/TSX Composite is 3.4% below its 52-week high on Nov. 16, 2021 and 21.7% above its low on Jan. 29, 2021
* The S&P/TSX Composite is down 1.1% in the past 5 days and rose 2.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19 on a trailing basis and 14.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.39t
* 30-day price volatility fell to 10.94% compared with 11.55% in the previous session and the average of 14.18% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | -46.3417| -1.8| 9/46
* Financials | -28.8290| -0.4| 6/22
* Energy | -22.4885| -0.7| 4/28
* Consumer Discretionary | -18.5704| -2.5| 0/14
* Consumer Staples | -10.2904| -1.4| 2/9
* Information Technology | -8.8527| -0.5| 7/9
* Communication Services | -7.3566| -0.7| 0/7
* Real Estate | -4.9319| -0.8| 4/20
* Health Care | -1.4158| -1.0| 3/5
* Industrials | 0.5540| 0.0| 16/14
* Utilities | 1.5245| 0.2| 11/5
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Royal Bank of Canada | -16.5200| -1.2| 50.0| 8.2
* Magna International | -9.7450| -4.8| 25.9| -1.4
* Nutrien | -8.6560| -2.4| -7.7| -5.2
* TD Bank | 1.6250| 0.1| -38.3| 4.9
* Intact Financial | 2.8500| 1.5| 22.2| -0.5
* Canadian Pacific | 4.8430| 0.8| 60.9| 5.2

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — The volatility that’s gripped financial markets this year tightened its hold on American stocks, with a late-session plunge sending the Nasdaq 100 Index into a correction.
The tech-heavy benchmark wiped out a gain that reached 1.99% to post a 1.3% drop, leaving it more than 10% below its November all-time high.
The selling spread to the S&P 500, which is now more than 5% off its all-time high set on the year’s first trading day.
The reversal was sparked by news that Peloton Interactive Inc. was halting some production, sending the at-home darling to a 24% drop.
Nerves remained frayed on global equity markets with central banks set to tighten policy after almost two years of support that bolstered demand for risk assets.
While selling in Treasuries eased Thursday, stock investors were taking few chances after Peloton’s warning and before major tech companies report earnings.
Netflix Inc. plunged 10% in late trading after releasing results.
“It is a little discouraging that markets couldn’t hold on to gains seen earlier in the trading session,” said Adam Phillips, managing director of portfolio strategy at EP Wealth Advisors. “There are definitely some signs of panic out there.”
Data today showed U.S. jobless claims climbed last week to a three-month high, suggesting that the omicron variant could be having a bigger impact on the labor market.
January’s Philadelphia Fed survey surprised to the upside, providing a counterpoint to the slump seen in the survey for New York state earlier this week.
On the company news and earnings front:
* Peloton tumbled on a report that it’s temporarily halting production of bikes and treadmills due to slowing demand.
* Alcoa Corp. rose after the aluminum producer predicted rising demand and warned that any conflict between Russia and Ukraine could deepen existing supply constraints.
* Union Pacific Corp. gained after profit topped analysts’ estimates and costs were kept in check while it work to untangle supply-chain knots.
* American Airlines Group Inc. reported a smaller-than-estimated loss in the fourth quarter and said ticket purchases are starting to recover.
* Travelers Cos. capped off 2021 with a record fourth quarter, beating analysts’ profit estimates on underwriting strength and investment gains.

The reporting season so far has been a little bit rocky, and investors need to monitor commentary from companies about price and wage pressures, Rebecca Felton, RiverFront Investment Group senior market strategist, said on Bloomberg Television.
“We do believe stocks can continue to go higher even as the Fed changes policy,” she said, adding corporate profits will still likely beat estimates.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.3%
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World index fell 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.3% to $1.1305
* The British pound fell 0.2% to $1.3591
* The Japanese yen rose 0.1% to 114.20 per dollar
Bonds
* The yield on 10-year Treasuries declined four basis points to 1.82%
* Germany’s 10-year yield declined one basis point to -0.02%
* Britain’s 10-year yield declined three basis points to 1.23%
Commodities
* West Texas Intermediate crude was little changed
* Gold futures fell 0.3% to $1,840.30 an ounce
–With assistance from Abigail Moses.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

The aim of argument, or of discussion, should not be victory, but progress. –Joseph Joubert, 1854-1824.

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