April 20, 2021 Newsletter

Dear Friends,

Tangents:
1902: Scientists Marie and Pierre Curie isolated the radioactive element radium.  Go to article »

2010: The Deepwater Horizon drilling rig explodes, killing 11 and causing the rig to sink, causing a massive oil discharge into the Gulf of Mexico and an environmental disaster.

Some Syrians fleeing violence have sought refuge in ancient archaeological sites.

Virtual Travel: Each summer along the Alaska coast, millions of salmon begin their journey back to the rivers where they

PHOTOS OF THE DAY

The sun rises into an orange sky at dawn by the River Great Ouse in Ely, Cambridgeshire, with the good weather set to continue this week
CREDIT: VERONICA JOHANSSON POULTNEY/BAV MEDIA

The Royal Chapel at Chateau de Versailles in France is pictured after its restoration, which started in Autumn 2017
CREDIT: PASCAL LE SEGRETAIN/GETTY IMAGES

Cypriot marine ecologist Louis Hadjioannou, 38, dives to photograph the coral, as he monitors the impact of climate change on the delicate fauna in the crystal clear waters of Glyko Nero in Ayia Napa,
CREDIT: EMILY IRVING/AFP VIA GETTY IMAGES

Marcia from Norwich stands among thousands of tulips which have burst into colour in fields near King’s Lynn in Norfolk
CREDIT: JOE GIDDENS/PA

Market Closes for April 20^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1720, declaring that he “can calculate the motions of the heavenly bodies, but not the madness of the people,” Isaac Newton sold his 7,000 pounds’ worth of South Sea Co. stock at a 100% profit. But the excitement around England’s first great IPO proved too much even for him, and he soon got back in. Newton ended up losing 20,000 pounds when the bubble burst, and from that moment on, he could “never bear to hear the South Sea referred to for the rest of his life.”

Canada
By Michael Bellusci
(Bloomberg) — Canadian equities extended their drop early Tuesday after industrials weakened amid railway M&A. The S&P/TSX Composite Index fell about 0.6%, with all 11 sectors lower. On the deal front, Canadian National Railway Co. offered $30 billion to snatch Kansas City Southern away from a rival, spurring a possible bidding war over one of the industry’s biggest deals in decades.

Commodities
* Western Canadian Select crude oil traded at a $11.70 discount to West Texas Intermediate
* Spot gold fell 0.1% to $1,769.60 an ounce
FX/Bonds
* The Canadian dollar rose 0.1% to C$1.2524 per U.S. dollar
* The 10-year Canada government bond yield rose 1.9 basis points to 1.536%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.9 percent, or 163.64 to 19,040.78 in Toronto. The move was the biggest since falling 1.1 percent on March 4. Today, financials stocks led the market lower, as 6 of 11 sectors lost; 111 of 229 shares fell, while 114 rose. Canadian National Railway Co. contributed the most to the index decline, decreasing 6.3 percent. Organigram Holdings Inc. had the largest drop, falling 10.1 percent.
Insights
* This month, the index rose 1.8 percent
* The index advanced 32 percent in the past 52 weeks. The MSCI AC Americas Index gained 49 percent in the same period
* The S&P/TSX Composite is 1.8 percent below its 52-week high on April 16, 2021 and 36.6 percent above its low on April 21, 2020
* The S&P/TSX Composite is down 0.8 percent in the past 5 days and rose 1 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 28.3 on a trailing basis and 16.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.7 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3t
* 30-day price volatility rose to 8.64 percent compared with 8.36 percent in the previous session and the average of 10.60 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -59.5540| -1.0| 7/20
* Industrials | -55.7925| -2.4| 12/17
* Energy | -42.5297| -1.8| 5/18
* Information Technology | -20.2433| -1.1| 2/9
* Health Care | -10.7938| -4.3| 0/10
* Consumer Discretionary | -0.9833| -0.1| 7/6
* Communication Services | 2.1710| 0.2| 4/4
* Real Estate | 2.7941| 0.5| 21/5
* Utilities | 5.4402| 0.6| 13/3
* Consumer Staples | 6.0249| 0.9| 11/2
* Materials | 9.8228| 0.4| 32/17

US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. stocks fell for a second day as rising virus cases around the world led to renewed concern over the continued economic impact, overshadowing a batch of solid corporate results. The S&P 500 extended its slide from an all-time high, with investors showing caution ahead of the brunt of the earnings season. All eyes will be on whether an anticipated rise in profits will bring with it forecasts for stronger growth ahead. International Business Machines Corp. climbed after reporting its largest revenue growth in 11 quarters, while United Airlines Holdings Inc. paced a selloff in travel stocks on a bigger-than-expected loss. Netflix Inc. tumbled after the close of regular trading as its new streaming users lagged estimates.
While American equities are trading at a valuation that’s about 35% above the average of the past decade, investors are focused on what’s forecast to be the best earnings season in two years. One of their biggest concerns is whether companies are equipped to handle mounting inflation pressures as the economic recovery gains momentum. “Earnings season is ramping up, and there’s this concern about how the multinationals will give their guidance in view of the fact that we haven’t drawn a line under Covid yet,” said Fiona Cincotta, senior financial markets analyst at City Index. “That is just starting to unnerve investors. Demand for riskier assets has come off.” For David Donabedian, chief investment officer at CIBC Private Wealth Management, the stock market has been just taking a breather after a big rally, but there are still reasons to be bullish. “The economic recovery has taken hold, the earnings recovery has taken hold, everything we’ve seen from first- quarter earnings so far has been that it’s going to be a blowout quarter,” he said. Elsewhere, the dollar rose for the first time in seven sessions, while the Treasury 10-year yield dropped to the lowest
level in more than five weeks.
Other corporate highlights:
* Johnson & Johnson posted stronger-than-expected sales, while Travelers Cos.’s earnings beat estimates and Philip Morris International Inc. raised its outlook
* Procter & Gamble Co. is boosting the prices of some consumer products as the household-goods behemoth grapples with higher commodity costs
Here are some key events to watch this week:
* EIA crude oil inventory report on Wednesday.
* European Central Bank rate decision and President Christine Lagarde briefing on Thursday.
* U.S. releases new home sales data Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.7%
* The Dow Jones Industrial Average fell 0.8%
* The Russel 2000 Index fell 2%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro was little changed at 1.2033
* The British pound fell 0.4% to 1.3935
Bonds
* The yield on 10-year Treasuries declined four basis points to 1.562%
* Germany’s 10-year yield declined three basis points to -0.262%
* Britain’s 10-year yield declined two basis points to 0.731%
Commodities
* West Texas Intermediate crude fell 1.5% to $62 a barrel
* Gold futures rose 0.4% to $1,778 an ounce

–With assistance from Andreea Papuc, Emily Barrett, Cecile Gutscher, Srinivasan Sivabalan, Kamaron Leach and Elizabeth Stanton.

Have a great night.

Be magnificent!

As ever,

Carolann

First learn the meaning of what you say, and then speak.
                                         -Epictetus, 50 AD- 135 AD

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