April 22, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.  It’s Earth Day today.
2016: More than 170 countries sign the Paris Agreement on climate change, a landmark treaty that sought to control and reduce greenhouse gas concentrations in the atmosphere; it officially took effect in November 2016.
2010: The Deepwater Horizon oil platform, operated by BP, sank into the Gulf of Mexico two days after a massive explosion that killed 11 workers.  Go to article »
1955: Congress orders all US coins bear the motto “In God We Trust”.

Archaeologists in Egypt have discovered an ancient pottery workshop — with the remains of rounded vessels, coins, figurines and even a “ritual room” — dating to the beginning of the Roman period in Tabba Matouh, west Alexandria.  Ancient workers primarily used the site for crafting amphorae — two-handed vessels with a neck narrower than the main body that were used for the storage and transportation of goods such as oil and grain, according to the University of Oxford’s Classical Art Research Center.  Full Story: Live Science (4/21) 

If you saw a shooting star last night, it might have been from the Lyrid meteor shower — a collection of bright and fast meteors that reached its peak overnight. For those who missed the exciting moment, we have good news! You may have an opportunity to catch an even better glimpse of the meteor shower later this evening!

Prehistoric humans turned their campfires into makeshift movie theaters.  Check out this fascinating bit of Stone Age history!

Bacteria may be telling you what you want to eat.

How to resurrect a coral reef.

PHOTOS OF THE DAY

Members of the Northern Ballet take part in their opening matinee performance of The Great Gatsby at the Festival theatre
CREDIT: Lee Smith/Reuters

An installation that forms part of We Walked the Earth by the artist Uffe Isolotto at Denmark’s pavilion during the 59th Biennale of Arts exhibition
CREDIT: Antonio Calanni/AP

Visitors attend the opening of a replica of Michelangelo’s Sistine Chapel paintings
CREDIT: Future Publishing/Getty Images

Market Closes for April 22^nd, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1970, the Dow Jones Industrial Average dropped by 1.3% to 762.61, and H. Ross Perot suffered the worst one-day personal investment loss then on record. His Electronic Data Systems dropped from roughly $150 a share to around $80 in chaotic over-the-counter trading, a paper loss of $450 million for Mr. Perot.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities tumbled to their lowest point in more than six weeks as all sectors in the index dropped.
The S&P/TSX Composite fell for the third day, dropping 2.1%, or 464.03 to 21,186.38 in Toronto.
The move was the biggest since falling 2.3% on Nov. 30.
Today, financials stocks led the market lower, as all sectors lost; 217 of 239 shares fell, while 22 rose.
Brookfield Asset Management Inc. contributed the most to the index decline, decreasing 4.1%.
First Quantum Minerals Ltd. had the largest drop, falling 9.1%.
Insights
* In the past year, the index had a similar or greater loss two times. The next day, it declined 0.9% once and advanced 0.1% once
* This month, the index fell 3.2%
* So far this week, the index fell 3.1%, heading for the biggest decline since the week ended Jan. 21
* The index advanced 11% in the past 52 weeks. The MSCI AC Americas Index gained 1.8% in the same period
* The S&P/TSX Composite is 4.6% below its 52-week high on April 5, 2022 and 11.6% above its low on April 22, 2021
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.7 on a trailing basis and 13.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.7% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.46t
* 30-day price volatility rose to 12.73% compared with 11.04% in the previous session and the average of 11.70% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -174.3408| -2.6| 0/28
* Materials | -76.1165| -2.6| 4/48
* Energy | -68.6250| -1.9| 1/33
* Industrials | -58.2811| -2.3| 1/29
* Information Technology| -33.8596| -2.7| 2/14
* Consumer Discretionary| -19.0556| -2.7| 1/13
* Communication Services| -12.3852| -1.1| 1/6
* Real Estate | -7.4587| -1.2| 0/23
* Utilities | -6.5448| -0.6| 7/9
* Consumer Staples | -5.6479| -0.7| 4/7
* Health Care | -1.7423| -1.3| 1/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Brookfield Asset Management | -27.8000| -4.1| 91.0| -14.0
* TD Bank | -18.0600| -1.5| -44.6| -3.9
* Enbridge | -16.9900| -2.1| 92.2| 15.5
* Cenovus Energy | 0.4330| 0.2| 6.9| 41.6
* West Fraser Timber | 0.5370| 0.7| -30.2| -7.9
* Hydro One | 0.6290| 0.9| -4.3| 8.4

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — U.S. stocks fell, capping a third weekly decline, as disappointing corporate results and prospects for aggressive interest-rate hikes weighed on sentiment.
The S&P 500 slid 2.8%, the biggest decline since March 7, tipping the benchmark to a weekly decline in the longest run of losses for the period since January. Declines in tech-heavy Nasdaq 100 left it down more than 9% so far in April, poised for the worst month since 2008.
Meanwhile, the market’s so-called fear gauge — the Cboe Volatility Index or VIX — jumped to a one-month high.
The dollar rose to the highest level since June 2020.
Among corporate earnings, Verizon Communications Inc. had its biggest drop in two years after cutting its full-year sales forecast.
American Express Co. fell after the credit-card giant reported that expenses jumped in the first quarter.
Traders have increased bets on the Federal Reserve tightening policy after Chair Jerome Powell this week outlined his most aggressive approach yet to taming inflation, potentially endorsing two or more half percentage-point rate increases.
Stocks briefly bounced off session lows late Friday after Cleveland Fed President Loretta Mester pushed back against raising interest rates by 75 basis points at a single meeting, favoring a
“methodical approach.”

“A more aggressive monetary policy is getting priced across the board on the short end of the curve while also contaminating the rest of it,” said Florian Ielpo, head of macro at Lombard Odier Asset Management. “The equity market had difficulties factoring in this surge in yields, over an earnings-season period that appears to be shaky.”
Money markets priced in 200 basis points of tightening by the Fed’s September decision, according to interest-rate swaps.
That implies a half-point hike — unheard of since 2000 – in May, June, July and September.
Powell on Thursday cited minutes from last month’s policy meeting that said many officials had noted “one or more” 50 basis-point hikes could be appropriate to curb the hottest inflation in four decades.
Health-care stocks tumbled, with HCA Healthcare Inc. sinking after cutting its forecast on labor costs.
Intuitive Surgical Inc. tumbled after its systems placements disappointed some analysts even as revenue beat estimates.
On the flip side, Kimberly-Clark Corp. surged after first-quarter sales and profit beat Wall Street’s estimates, as the company passed on higher costs to consumers.
So far in the earnings season, with 98 S&P 500 companies that have reported quarterly results, more than 79% have beaten estimates for profit and 65% have surpassed sales forecasts.
European equities joined Friday’s selloff as financial results in the continent proved to be a mixed bag and stronger tightening signals from the European Central Bank undermined risk appetite.
Investors also braced for the second round of voting in the French presidential election this Sunday, where Emmanuel Macron will face off against Marine Le Pen.
The euro fell for a second day against the dollar.
More market commentary
* “The Fed still needs to push on its hawkish rhetoric,” Kelsey Berro, fixed income portfolio manager at JPMorgan Investment Management Inc, said on Bloomberg TV. “They would ideally like to be above 2% by the end of the year and I think that the economy will work with them on that. We do still see the U.S. economy as fairly resilient. There’s a lot of pent up demand for spending particularly on the services side.”
* “On monetary policy, the Fed has to follow it through – that it’s very serious and that it’s not simply underwriting a put for the stock market every time financial markets have a hiccup,” Glenn Hubbard, a finance and economics professor at Columbia University, said on Bloomberg TV.
* “The unknown is Powell’s ability to deliver the needed finesse without completely derailing the recovery, while not falling short of the required magnitude to anchor inflation,” Ian Lyngen, head of interest rate strategy at BMO Capital Markets, wrote in a note.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.6%
* The Dow Jones Industrial Average fell 2.8%
* The MSCI World index fell 2.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.7%
* The euro fell 0.3% to $1.0797
* The British pound fell 1.5% to $1.2833
* The Japanese yen fell 0.1% to 128.53 per dollar
Bonds
* The yield on 10-year Treasuries declined one basis point to 2.89%
* Germany’s 10-year yield advanced two basis points to 0.97%
* Britain’s 10-year yield declined five basis points to 1.96%
Commodities
* West Texas Intermediate crude fell 2% to $101.73 a barrel
* Gold futures fell 0.7% to $1,934.70 an ounce
–With assistance from Akshay Chinchalkar, Sunil Jagtiani, Srinivasan Sivabalan, Isabelle Lee and Peyton Forte.
Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

A great book begins with an idea; a great life, with a determination. -Louis Dearborn L’Amour, 1908-1988.

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