March 3, 2022 Newsletter

Dear Friends,

Tangents:
March 3, 1805: Louisiana/Missouri Territory formed.
On March 3, 1991, in a case that sparked a national outcry, motorist Rodney King was severely beaten by Los Angeles police officers in a scene captured on amateur video.  Go to article »

March 3, 1943: WW II, In London, 173 people are killed in a crush while trying to enter an air-raid shelter at Bethnal Green tube station.

Alexander Graham Bell, inventor, b. 1847.
Ring Lardner Sr., writer, b.1885.
Elvis Presley first TV appearance, 1955.

Amazon is closing all of its physical bookstores.  First, Amazon shuttered the doors of traditional bookstores worldwide. Then it opened its own. Now, they’re closing them all.

Sportswear brand Fila is opening a hotel in Shanghai.  Luxury hotels are collaborating with popular brands to create the ultimate customer experience.

Western Australia opens its borders after 697 days.  One of the world’s longest border closures ends today! 

The 10 best new books to read this spring. 

Some tech companies think holograms are the future of communication.

PHOTOS OF THE DAY

A green frog sits on a moth orchid at an agricultural research centre two days before Gyeongchip, the day when frogs awaken from hibernation
CREDIT: Yonhap/EPA

The Swiss-French artist Saype (Guillaume Legros) works on his giant ephemeral land art painting World in Progress III, representing two children drawing and building their ideal world, at the United Nations headquarters
CREDIT: Valentin Flauraud/AP

Children look out of a carriage window as a train prepares to depart for the town of Uzhhorod, near the border with Slovakia
CREDIT:  Daniel Leal/AFP/Getty Images

Market Closes for March 3rd, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1901, John Pierpont Morgan said he was organizing the largest corporation the world had yet seen by merging his Federal Steel conglomerate with Andrew Carnegie’s Carnegie Co. The company was initially capitalized at $1.4 billion—the first billion-dollar company ever—four times the budget of the U.S. government and 7% of the gross national product
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities dipped Thursday, weighed down by the country’s two biggest industry sectors, financial and energy stocks.
The S&P/TSX Composite declined slightly to 21,250.41 in Toronto.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 3.1%.
Docebo Inc. had the largest percentage drop, falling 10.6%.
Today, 120 of 239 shares fell, while 118 rose; 5 of 11 sectors were lower, led by information technology stocks.
Insights
* This quarter, the index was little changed
* So far this week, the index rose 0.7%
* The index advanced 16% in the past 52 weeks. The MSCI AC Americas Index gained 13% in the same period
* The S&P/TSX Composite is 2.5% below its 52-week high on Nov. 16, 2021 and 18.4% above its low on March 4, 2021
* The S&P/TSX Composite is up 2.4% in the past 5 days and rose 0.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.4 on a trailing basis and 14.4 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 14.29% compared with 14.45% in the previous session and the average of 13.59% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -21.6433| -1.5| 4/12
* Financials | -21.1181| -0.3| 16/12
* Energy | -20.0565| -0.6| 5/27
* Consumer Discretionary | -17.2241| -2.4| 0/14
* Health Care | -4.2421| -3.0| 1/7
* Utilities | 1.2162| 0.1| 11/5
* Real Estate | 2.1699| 0.4| 18/5
* Consumer Staples | 2.7470| 0.4| 7/4
* Communication Services | 11.0170| 1.0| 5/2
* Industrials | 20.0759| 0.8| 13/16
* Materials | 41.6581| 1.5| 38/16
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* TD Bank | -39.9000| -3.1| 22.5| 1.4
* Shopify | -16.4000| -2.5| -49.3| -53.3
* Magna International | -8.1180| -4.8| 90.3| -17.6
* Nutrien | 10.2700| 2.4| 14.1| 19.6
* Royal Bank of Canada | 13.7900| 1.0| -19.1| 3.6
* Canadian Pacific | 14.4100| 2.5| -8.1| 3.4

US
By Rita Nazareth
(Bloomberg) — Technology stocks dragged down the equity market ahead of Friday’s jobs report as traders weighed the economic impacts of the war in Ukraine.
The rally in oil eased, with crude experiencing an extraordinary run of volatility.
The S&P 500 erased gains, while the tech-heavy Nasdaq 100 underperformed major benchmarks as megacaps Tesla Inc. and Amazon.com Inc. sank at least 2.7%.
West Texas Intermediate topped $116 before pulling back.
Zinc reached its highest since 2007 and aluminum jumped to a record as industrial metals extended a surge fueled by trade turmoil and the increasing economic isolation of Russia.

Traders awaited the government’s employment report, which is currently forecast to show the U.S. added 415,000 jobs in February.
Rapid wage growth in the U.S. likely isn’t retreating any time soon.
Along with soaring commodities prices since Russia’s invasion of Ukraine, high labor costs are yet another factor the Federal Reserve will have to contend with as it prepares to raise interest rates to tamp down inflation.
Fed Chair Jerome Powell said the surge in energy prices will likely spill into inflation and if that shift proved to be lasting, it could put upward pressure at the “margin” to longer-term expectations that the central bank wants to stop creeping up.
He also noted the conflict in Ukraine could hit sentiment, harming investment spending.
President Joe Biden’s administration said it would sanction eight wealthy Russians and their families and impose visa restrictions on 19 others and 47 of their family, as the U.S. and its allies seek to raise pressure on the elites around President Vladimir Putin in response to the invasion of Ukraine.
Comments:
* “Rising commodity prices are a big concern for the market, prompting fears of stagflation,” said Fiona Cincotta, senior financial markets analyst at City Index. “The economic clinch point of this war is commodity prices. Higher energy prices, slowing growth, and surging inflation are not a good outlook.”
* “There has been a lot of daily volatility which I don’t expect to subside,” said Megan Horneman, chief investment officer at Verdence Capital Advisors. “Even if volatility will remain heightened, we are not worried for a recession. I believe there will be a growth slowdown, specifically because of heightened global commodity prices.”
* “Volatility is going to continue to be around and an issue,” said Mark Stoeckle, chief executive officer of Adams Funds. “We are positioned for oil to go higher. There’s no question that this is going to be a headwind.”
* “Policy makers are facing an unenviable situation over the near-term; inflationary pressures are mounting while the broader outlook grows more uncertain by the day,” wrote Deutsche Bank
strategist Jim Reid.

Investors dumped risk assets during Russia’s invasion of Ukraine but they found a haven in junk.
U.S. high-yield corporate bonds rallied over the last week, thrashing investment-grade, which is much more susceptible to rising rates.
Strategists expect the debt to continue to do well, even as higher-rated bonds sell off.
Treasuries reached “extreme overbought territory” prior to Wednesday’s rebound in yields, according to JPMorgan Chase & Co. strategists.
On a technical basis, the bank’s strategists still view the bear market as intact and expect the 10-year yield to exceed 2% in the months ahead.
What to watch this week:
* U.S. unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.5% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.5%
* The Dow Jones Industrial Average fell 0.3%
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.5% to $1.1063
* The British pound fell 0.5% to $1.3339
* The Japanese yen was little changed at 115.45 per dollar
Bonds
* The yield on 10-year Treasuries declined three basis points to 1.85%
* Germany’s 10-year yield was little changed at 0.02%
* Britain’s 10-year yield advanced four basis points to 1.30%
Commodities
* West Texas Intermediate crude fell 2.2% to $108.20 a barrel
* Gold futures rose 0.9% to $1,939.50 an ounce
–With assistance from Andreea Papuc, Abigail Moses, Vildana Hajric, Isabelle Lee and Emily Graffeo.
Have a wonderful evening.

Be magnificent!
As ever,

Carolann

Whatever task you undertake, do it with all your heart and soul.  Always be courteous, never be discouraged.  Beware of him who promises something for nothing. 
Do not blame anybody for your mistakes and failures. -Bernard M. Baruch, 1870-1965.

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