March 28, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.
On March 28, 1979, America’s worst commercial nuclear accident occurred inside the Unit Two reactor at the Three Mile Island plant near Middletown, Pa. –Go to article »

More than 5,000 worlds exist beyond our solar system. There could be billions more.  A nice, light shower thought for you this morning. 

The best of the Oscars 2022 red carpet fashion.  “Can you believe they wore that?!” we say, from within the depths of our oldest, rattiest morning robes.

These are the Russian tycoon mansions on the French Riviera.

Bookstores may be making a comeback.

Italian scientists create yeast-free pizza dough.

Weird space blob photographed.

Plant-based nanocrystals could keep ice cream creamy. (h/t Scott Kominers)

PHOTOS OF THE DAY

A crane flies over the Edo river surrounded by fully blossomed cherry trees
CREDIT: Charly Triballeau/AFP/Getty Images

A magic box encloses Venetika, Ferzan Ozpetek’s visionary Venice, a project created for the 58th Art Biennale
CREDIT: Mimmo Frassineti/REX/Shutterstock

Mummies of the Chinchorro culture, which were found at the start of the 20th century and are more than 7,000 years old
CREDIT: Martin Bernetti/AFP/Getty Images

Market Closes for March 28^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1985, a sitting U.S. president visited the floor of the New York Stock Exchange at long last, as Ronald Reagan came to ring the bell that opened trading.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities fell Monday, weighed down by energy stocks as oil prices fell 9.2% to $103 per barrel on reduced Chinese demand.
The S&P/TSX Composite slipped 0.1% at 21,977.83 in Toronto. The move follows the previous session’s gain of 0.3%.
Suncor Energy Inc. contributed the most to the index decline, dropping 3.3%. Canopy Growth Corp. had the largest percentage decline, falling 8.3%.
Today, 143 of 239 shares fell, while 92 rose; 3 of 11 sectors were lower, led by energy.
Insights
* This quarter, the index rose 3.6%
* This month, the index rose 4%
* 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 0.8% below its 52-week high on March 22, 2022 and 18.2% above its low on March 26, 2021
* The S&P/TSX Composite is little changed in the past 5 days and rose 4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.6 on a trailing basis and 14.2 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$3.5t
* 30-day price volatility fell to 12.59% compared with 12.94% in the previous session and the average of 13.27% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -56.2014| -1.5| 2/31
* Materials | -43.3996| -1.5| 1/51
* Health Care | -5.3018| -3.4| 0/8
* Real Estate | 0.7676| 0.1| 13/10
* Financials | 2.9924| 0.0| 10/16
* Consumer Discretionary | 3.0083| 0.4| 9/4
* Communication Services | 3.8393| 0.4| 3/4
* Utilities | 4.8842| 0.5| 14/2
* Consumer Staples | 9.9736| 1.2| 10/1
* Industrials | 17.7893| 0.7| 18/12
* Information Technology | 33.5545| 2.3| 12/4
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Suncor Energy | -13.7900| -3.3| -38.8| 29.6
* Canadian Natural Resources | -11.6500| -1.8| -65.6| 45.8
* Nutrien | -5.9190| -1.2| -47.2| 40.5
* Waste Connections | 7.0220| 2.3| -38.0| -0.2
* Brookfield Asset Management | 7.4350| 1.0| -34.9| -6.3
* Shopify | 25.1200| 3.8| -35.2| -49.6

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — U.S. stocks climbed in afternoon trading, led by gains in mega caps and tech shares.
Benchmark Treasuries reversed an earlier slide, while oil declined on China lockdown concerns.
The S&P 500 rose for a third day, closing up 0.7% after falling as much as 0.6%.
The advance in the tech-heavy Nasdaqc100 topped 1.5%.
Oil tumbled as China’s worsening virus resurgence boosted concern over demand in the world’s biggest crude importer.
Meanwhile, equity markets remained sensitive to headlines on the war in Ukraine, dipping earlier after a report several peace negotiators suffered symptoms of suspected poisoning after a meeting in Kyiv earlier this month.
“This is a difficult market to make sense of because it’s unusual that we have so many factors at work,” Marc LoPresti, managing director of The Strategic Funds, said by phone. “But I think at the end of the day, the American economy remains strong. American consumer demand remains strong. We’re seeing continued improvement in the job market. All of those indicators do seem to imply that there is a healthy foundation in terms of the U.S. economy.”
Tesla Inc. gained after saying it plans to seek shareholder approval for a move that would enable another stock split.
Bloomberg earlier reported the electric-vehicle maker was extending the temporary shutdown of its car plant in Shanghai due to the surge in cases in the city.
Apple Inc. clawed back losses sparked by a report that it is cutting production of its iPhone SE line. Crypto stocks gained as Bitcoin erased it 2022 losses.
The 10-year Treasury yield traded near 2.45%, from a session high of 2.55%.
Earlier yields on five-year Treasuries rose above those on 30-year bonds, suggesting some investors expect an economic downturn.
The dollar gained versus most of its major peers.
A growing number of money managers are betting equity indexes have already largely priced in bearish bond moves, as equity strategists from Goldman Sachs Group Inc. to JPMorgan Chase & Co. reassure stock investors that there’s no need to fret about U.S. Treasury yield curve just yet.
Still, the war in Ukraine continues to disrupt supplies of key commodities, stoking inflation risks and expectations of more aggressive Federal Reserve tightening.
Meanwhile, global shares have recovered from the lows sparked by Russia’s invasion.
In the latest geopolitical developments, Turkish President Recep Tayyip Erdogan says he will meet Russia and Ukraine delegations in Istanbul on Tuesday.
President Joe Biden tried to temper comments calling for the removal of Vladimir Putin by saying the U.S. isn’t seeking regime change in Moscow.
On Monday, Biden unveiled a $5.8 trillion budget, with a proposal that emphasized deficit reduction, additional funding for police and veterans, and flexibility to negotiate new social spending programs.
More commentary
“With the clock running out on Q1, the market did something it’s done just one other time this year — pieced together a two-week win streak,” Chris Larkin, managing director of trading at E*TRADE from Morgan Stanley, said in an email. But stocks are still down for the quarter, and “with a stacked economic calendar and no shortage of macro factors at play, the jury is out on where exactly the market could end as Q1 draws to a close.”
“The market’s recent success has been less about latest news flows getting better, but more about the news not getting worse, and in a real sense, likely priced into current valuations,” Art Hogan, chief market strategist at National Securities, wrote in a note. “Russia’s invasion of Ukraine shows few signs of ending. Fed Chairman Jerome Powell and other Fed  governors have been talking up the possibility of half-point
rate increases at upcoming meetings.”
“When yields rise in a meaningful way, it pretty much always has a negative impact on the stock market eventually,” Matt Maley, chief market strategist at Miller Tabak + Co., said in a Monday note. “Those who think the stock market has already priced in such a large rise in yield” when the S&P 500 trades at more than 20x forward earnings “are not looking at history correctly.”
“I think that this fast, fast move in the bond market and yields has caught people a little bit off guard,” Sarah Hunt, portfolio manager at Alpine Woods Capital Investors, said on Bloomberg TV. “It’s very difficult when bonds have more volatility than some of the things that are supposed to be volatile like Bitcoin.”
Some key events to watch this week:
* Australia’s annual budget, Tuesday
* Philadelphia Fed President Patrick Harker to speak, Tuesday
* U.S. GDP, Wednesday
* Richmond Fed President Thomas Barkin to speak, Wednesday
* China manufacturing, non-manufacturing PMIs, Thursday
* OPEC and non-OPEC ministerial meeting to discuss production targets, Thursday
* New York Fed President John Williams to speak, Thursday
* U.S. jobs report, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.7% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.6%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro was little changed at $1.0987
* The British pound fell 0.7% to $1.3093
* The Japanese yen fell 1.5% to 123.84 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 2.45%
* Germany’s 10-year yield was little changed at 0.58%
* Britain’s 10-year yield declined eight basis points to 1.62%
Commodities
* West Texas Intermediate crude fell 9.4% to $103.15 a barrel
* Gold futures fell 1.9% to $1,923.30 an ounce
–With assistance from Andreea Papuc, Emily Barrett, Abigail Moses, Emily Graffeo and Isabelle Lee.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

In war, there are no unwounded soldiers. –José Narosky, b. 1930.

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