April 27, 2022 Newsletter

Dear Friends,

Tangents:
1992: Russia and 12 other former Soviet republics won entry into the International Monetary Fund and the World Bank. Go to article »

1828: The London Zoo, the world’s oldest scientific zoo opens in Regent’s Park.

Ferdinand Magellan, explorer, b. 1521.
Edward Gibbon, historian, b.1737.
1805: US Marines attack Tripoli.
Ulysses Grant, general, b. 1822.

The world’s oldest person is a nun who enjoys chocolate and wine.  Meet the 118-year-old French nun living in a nursing home who was recently named the world’s oldest living person.

Kevin Hart is launching a new media company called HARTBEAT.  The company has a clever name, a funny boss, and just received a $100 million private equity investment. Sounds like a great start, Hart.

SpaceX launched another historic astronaut mission today.  The spaceship took off this morning carrying four professional astronauts, including the first Black woman to join the International Space Station crew. 
PHOTOS OF THE DAY

The Leaves of the Trees art installation, made up of 5,000 metal maple leaves, by Peter Walker at Rochester Cathedral, created for the victims of the coronavirus pandemic
CREDIT: Fraser Gray/Rex/Shutterstock

A lightning bolt illuminates clouds during a thunderstorm
CREDIT: Mariana Suárez/AFP/Getty Images

Fish jump over a waterfall in the Venta River
CREDIT: Ints Kalniņš/Reuters

Market Closes for April 27^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1896, Wallace Hume Carothers was born in Burlington, Iowa. He later joined DuPont, where he invented the synthetic fabric used in rugs, parachutes and pantyhose: nylon.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian resources stocks surged Wednesday, led by a rebound in oil and gas and fertilizer equities, to lead the S&P/TSX Composite Index higher.
The Composite rose 0.3% at 20,744.23 in Toronto, snapping a five-day losing streak.
Cenovus Energy Inc. contributed the most to the index gain, increasing 10.3%.
Teck Resources Ltd. had the largest percentage increase, rising 11.7%.
Today, 111 of 239 shares rose, while 126 fell; 5 of 11sectors were higher, led by energy stocks.
Insights
* This month, the index fell 5.2%
* The index advanced 8.2% in the past 52 weeks. The MSCI AC Americas Index lost 1.7% in the same period
* The S&P/TSX Composite is 6.6% below its 52-week high on April 5, 2022 and 8.9% above its low on May 4, 2021 * The S&P/TSX Composite is down 5.7% in the past 5 days and fell 5.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.3 on a trailing basis and 13.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.31t
* 30-day price volatility fell to 12.47% compared with 13.15% in the previous session and the average of 11.60% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 61.9853| 1.7| 25/9
* Materials | 28.2369| 1.0| 19/33
* Industrials | 7.0665| 0.3| 17/12
* Consumer Staples | 5.9208| 0.7| 8/3
* Consumer Discretionary | 4.8117| 0.7| 10/4
* Utilities | -0.3210| 0.0| 6/10
* Health Care | -0.7416| -0.6| 2/6
* Real Estate | -3.0680| -0.5| 4/18
* Communication Services | -4.9161| -0.4| 1/6
* Information Technology | -9.9752| -0.8| 11/5
* Financials | -35.5858| -0.5| 8/20
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Cenovus Energy | 18.8900| 10.3| 93.2| 50.0
* Teck Resources | 17.0100| 11.7| 21.5| 39.5
* Suncor Energy | 15.7600| 3.9| 6.9| 33.2
* TD Bank | -8.9060| -0.8| -39.8| -6.5
* Shopify | -12.1100| -2.8| 41.8| -69.4
* Bank of Nova Scotia| -12.6700| -1.8| -20.9| -8.5
US
By Peyton Forte and Lu Wang
(Bloomberg) — U.S. equities rebounded from the worst rout since March, though ended well off session highs as a glut of earnings reports whipsawed sentiment.Dip buyers powered the S&P 500 as much as 1.6% higher before a late-session rally left it higher by just 0.2%.  The rally picked up in aftermarket trading as strong user numbers powered Meta Platforms Inc. to a 13% surge as of 4:15 p.m. in New York. Ford Motor Co., Pinterest Inc. and Qualcomm also advanced on solid results, helping lift the biggest ETF that tracks the Nasdaq 100 by almost 1%. The underlying index edged lower in cash trading.
The late advance did little to soften what is shaping up to be the worst month for the S&P 500 since March 2020 as the Federal Reserve’s campaign to tamp down inflation forced investors to reprice risk assets. Europe’s energy crisis, China’s struggle to suppress Covid and the war in Ukraine also combined to drive major bourses in Europe and the U.S. to their lowest since mid-March this week. “After some disappointing earnings news, investors seem to be acknowledging that the combination of higher input costs —
driven by supply chain snarls and higher inflation, alongside a Fed committed to tightening financial conditions — may warrant an adjustment in expectations,” said Cliff Hodge, chief investment officer for Cornerstone Wealth. “Valuations, margins and earnings expectations are all ripe to be cut, especially if Big Tech disappoints this quarter.” The ICE U.S. dollar index rose to a five-year high, while the euro touched the weakest level versus the greenback since 2017 as Russia said it will stop natural gas flows to Poland and Bulgaria. European gas prices surged as traders weighed the risk of other countries being hit next, spurring worries over a further spike in inflation and a sharp slowdown in the economy. Fears that the Fed would tip the world’s largest economy
into a recession have plagued markets all week, all while activity slows in China as Covid lockdowns bite. Treasuries retreated but the 10-year yield, at about 2.84%, remains lower for the week. Gold fell 1%.
“The markets are confused. The uncertainty factor is some of the highest we’ve seen in the course of the last number of years,” Kate Moore, BlackRock global allocation team head of thematic strategy, said in a Bloomberg Television interview,
citing everything from inflation, Covid, central bank policy to war in Ukraine. “There are so many crosscurrents. And against that backdrop, it’s hard to see volatility come down dramatically.”
Also helping the sentiment today was China’s President Xi Jinping’s vow for more infrastructure projects — the latest step to support a lockdown-hit economy.   Twitter Inc. declined, extending losses as shares dropped further below Elon Musk’s offer price of $54.20 per share. Tesla Inc. advanced after slumping on Tuesday. What will be the 2022 peak in U.S. 10-year yields and in which quarter will it happen? And what rock or pop song best encapsulates Fed monetary policy? Get involved in this week’s MLIV Pulse survey by clicking here. Participation takes one minute and is anonymous.

Events to watch this week:
* Tech earnings include Meta Platforms, Amazon, Apple
* EIA oil inventory report, Wednesday
* Bank of Japan monetary policy decision, Thursday
* U.S. 1Q GDP, weekly jobless claims, Thursday
* ECB publishes its economic bulletin, Thursday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.7% to $1.0559
* The British pound fell 0.2% to $1.2546
* The Japanese yen fell 0.8% to 128.31 per dollar
Bonds
* The yield on 10-year Treasuries advanced 10 basis points to 2.82%
* Germany’s 10-year yield declined one basis point to 0.80%
* Britain’s 10-year yield advanced two basis points to 1.81%
Commodities
* West Texas Intermediate crude rose 0.4% to $102.12 a barrel
* Gold futures fell 0.9% to $1,886.50 an ounce
–With assistance from Cecile Gutscher, Sunil Jagtiani, Joanna Ossinger, Michael Msika and Allegra Catelli.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Men too involved in details usually become unable to deal with great matters. -François Duc de La Rochefoucauld, 1613-1680.

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