February 8, 2022 Newsletter

Dear Friends,

Tangents:

Fe. 8, 1910: Boy Scouts of America established.

On Feb. 8, 1996, in a ceremony at the Library of Congress, President Clinton signed legislation revamping the telecommunications industry, saying it would “bring the future to our doorstep.”  Go to article »

Capital punishment: The first state execution in the USA by gas chamber takes place in Nevada.  Most countries, including almost all First World nations, have abolished capital punishment either in law or in practice; notable exceptions are the USA, Japan, Taiwan, and Singapore.  Additionally, capital punishment is also carried out in China, India, and most Islamic states.

Jennifer Garner says she was dumped the day after her first kiss.  There are always more fish in the sea!

Chimps seen applying ‘medicine’ to one another for first time.  Did you know humans and chimps share 98.8% of the same DNA? Prepare to be wowed by this animal intelligence study.

Musk blasts media for “relentless hate stream” of bad news.

What really happened at our universe’s birth?

Photos of the Day

Starlings fly over the city at dusk
CREDIT: Javier Belver/EPA

The House speaker, Nancy Pelosi, leads other lawmakers outside the US capitol building in a moment of silence for the 900,000 Americans who lost their lives to Covid
CREDIT: Jim Lo Scalzo/EPA

Kyle Soderman, Christian Winchell and Travis Brewer jump off a pole for a social media video at the Original Muscle Beach in Santa Monica
CREDIT: Alexi Rosenfeld/Getty Images

Market Closes for February 8^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1971, after nearly a decade of preparation, the Nasdaq market opened for stock trading, as the National Association of Securities Dealers Automated Quotation system first displayed the median price for more than 2,500 “over-the-counter” securities. The Nasdaq Composite Index was set at an initial value of 100.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.7 percent at 21,377.18 in Toronto.
The index advanced to the highest closing level since Jan. 17 after the previous session’s decrease of 0.2 percent.
Toronto-Dominion Bank contributed the most to the index gain, increasing 1.3 percent.
TFI International Inc. had the largest increase, rising 8.1 percent.
Today, 173 of 241 shares rose, while 63 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* The index advanced 17 percent in the past 52 weeks. The MSCI AC Americas Index gained 13 percent in the same period
* The S&P/TSX Composite is 1.9 percent below its 52-week high on Nov. 16, 2021 and 19.2 percent above its low on Feb. 26, 2021
* The S&P/TSX Composite is up 0.3 percent in the past 5 days and rose 1.4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.1 on a trailing basis and 14.9 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$3.39t
* 30-day price volatility rose to 12.91 percent compared with 12.76 percent in the previous session and the average of 12.72 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 89.4709| 1.2| 28/0
* Materials | 48.2546| 2.0| 49/6
* Industrials | 36.0276| 1.5| 25/5
* Information Technology | 19.3879| 1.2| 11/5
* Consumer Discretionary | 9.9234| 1.3| 11/3
* Consumer Staples | 7.1856| 0.9| 10/1
* Health Care | 2.2576| 1.5| 6/2
* Real Estate | 2.1099| 0.3| 12/9
* Utilities | 0.9198| 0.1| 10/4
* Communication Services | -0.3110| 0.0| 5/2
* Energy | -73.5307| -2.3| 6/26
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* TD Bank | 17.2500| 1.3| -12.2| 10.9
* Royal Bank of Canada | 17.2000| 1.2| -48.9| 9.9
* Shopify | 14.9200| 1.8| -30.4| -35.9
* Enbridge | -9.1700| -1.2| 78.2| 10.0
* Cenovus Energy | -10.9800| -6.4| 108.8| 18.0
* Canadian Natural Resources | -26.9900| -4.9| 13.7| 20.2

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — U.S. stocks rose in a broad-based rally, with gains in cyclicals and small-caps signaling improving investor confidence in the growth outlook amid monetary tightening.
The S&P 500 closed near session highs, recovering ground lost in Monday’s late-day slide, amid gains in financials and materials sectors.
Dip-buying in some big tech names like Apple Inc. and Microsoft Corp. helped lift the Nasdaq 100.
Meanwhile, the Russell 2000 of small-caps outperformed, jumping more than 1.5% and suggesting confidence about economic re-openings as the pandemic fades.
The 10-year Treasury yield climbed to 1.96%, levels last seen in 2019 with some investors betting it’s heading for 3% this year as the Federal Reserve battles red-hot inflation.
The dollar edged higher against a basket of peers.
“The primary market trend appears higher aided by an economy on solid footing and resilient earnings,” Keith Lerner, co-chief investment officer and chief market strategist at Truist Advisory Services, wrote in a note. “We are also encouraged that the market is already pricing in a great deal of rate hikes, that investor sentiment has reset sharply, and that valuations have pulled back.”
Investors are awaiting data Thursday expected to show stubbornly high U.S. inflation.
That could inject further volatility into markets bracing a Fed hiking cycle and eventual balance-sheet reduction.
But the rise in yields could also support some equities, like banks and value stocks, according to Goldman Sachs Group Inc., amid generally solid earnings.
Of the 299 companies in the S&P 500 that have reported results, 76% have beaten earnings estimates, with profits coming in more than 6% above projected levels.
“We had modest expectations for returns for stocks coming into the year — I don’t think that’s changed, but I think from here, we could certainly see a constructive recovery,” Brian Nick, chief investment strategist at Nuveen, said by phone.  “Every market, not just the equity market, is digesting a relatively rapid pivot from the Fed. I’d say it’s gone relatively well, all things considered.”
Oil fell sharply as traders weighed ongoing tensions in Eastern Europe and the resumption of Iran nuclear talks.
Bitcoin declined for the first time in six days, falling below $44,000.
In earnings and financial market news:
* Microsoft Corp. is considering making a bid for cybersecurity-research and incident response company Mandiant Inc., according to a person familiar with the discussions
* Pfizer Inc. declined after its 2022 revenue forecast missed estimates.
* Harley-Davidson Inc. reported a surprise profit in the fourth quarter as strong demand in its home market and higher motorcycle prices padded earnings and shipping delays eased.
* Coty Inc.’s earnings report was a mixed bag for investors with an upbeat forecast and quarterly revenue that missed expectations.
* Cathie Wood stepped up selling of social media platform Twitter Inc. shares days before its earnings.
* KKR & Co.’s distributable earnings surged 158% in the fourth quarter, beating Wall Street estimates, as the private equity giant took advantage of swelling asset prices to cash out of investments.
* Peloton Interactive Inc. Chief Executive Officer John Foley will step down and become executive chairman, marking a victory for activist investor Blackwells Capital LLC.

Here are some events to watch this week:
* Earnings: AstraZeneca, Commonwealth Bank of Australia, GlaxoSmithKline, Toyota Motor, Twitter, Uber, Walt Disney
* Federal Reserve Bank of Cleveland President Loretta Mester speaks Wednesday
* U.K. Bank of England Governor Andrew Bailey speaks Thursday
* U.S. consumer price index, initial jobless claims Thursday

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 1.1%
* The MSCI World index rose 0.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.2% to $1.1418
* The British pound rose 0.1% to $1.3551
* The Japanese yen fell 0.4% to 115.54 per dollar
Bonds
* The yield on 10-year Treasuries advanced four basis points to 1.96%
* Germany’s 10-year yield advanced four basis points to 0.26%
* Britain’s 10-year yield advanced eight basis points to 1.49%
Commodities
* West Texas Intermediate crude fell 1.8% to $89.68 a barrel
* Gold futures rose 0.3% to $1,827.90 an ounce
–With assistance from Andreea Papuc, Giulia Morpurgo and Robert Brand.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

The older I get the less I listen to what people say and the more I look at what they do. –Andrew Carnegie, 1835-1919.

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