August 11, 2022 Newsletter

Dear Friends,

Tangents: Full moon tonight – last Supermoon of the year  aka the Sturgeon Moon.  Shooting stars also continue with the Perseid meteor shower.
August 11, 1965: Watts Riot, Los Angeles.
August 11, 2014: American comedian and actor Robin Williams, who was known for his manic stand-up routines and his diverse film performances, dies by suicide.  3 months after Williams’ death, they discovered that he had a rare brain disease called Lewy body disease that was one of the worst cases ever seen.
1998: British Petroleum purchased Amoco for $49 billion.  Go to article »

Rubber balls used in famous Maya game contained ashes of cremated rulers, archaeologists claim: Maya people cremated their rulers and used the ashes to help make rubber balls that were used in ballgames, an archaeologist has claimed.  The researcher and his team believe they’ve found evidence of this practice while excavating the Maya city of Toniná, in southern Mexico.  Full Story: Live Science (8/11) 

Rare 400-year-old ship found in German river is a stunningly preserved ‘time capsule’:  Maritime archaeologists in northern Germany have discovered the wreckage of a 400-year-old cargo ship that “sank almost standing,” escaped decay from ravenous shipworms and still has the barrels of lime it was carrying for the stone-building industry centuries ago.  The ship, a rare discovery, is from the Hanseatic period, when a group of northern European trade guilds dominated the Baltic and North seas from the 13th to 17th centuries.  Full Story: Live Science (8/10) 

Massive expanse of towering hydrothermal vents discovered deep in the Pacific:  Scientists sent underwater robots into the depths of the Pacific, about 1.5 miles (2.5 kilometers) beneath the surface, and discovered something unexpected: a football field-size expanse of towering hydrothermal vents that cropped up in an area these underwater chimneys haven’t typically been seen.  The vents, shaped like candelabras, stand roughly 35 to 40 feet (10 to 12 meters) tall, or about as tall as three-story buildings, the research team leaders, from Lehigh University, said in a statement.  Full Story: Live Science (8/11) 

New image of colliding galaxies previews the fate of the Milky Way.  Millions of years from now, these two entangled galaxies will eventually merge into one. Check out the stunning telescope image here. 

Seems bad: Trees are growing in the Arctic tundra. 

The Aman New York is the city’s newest—and most expensive—hotel. 

PHOTOS OF THE DAY

Stanley, a five-day-old Rothschild giraffe, takes his first steps outside the giraffe house at Chester Zoo. Stanley’s mum, Orla, delivered him onto soft straw after a 15-month pregnancy and three-hour labour on Saturday. Keepers named 6ft Stanley after Mount Stanley, the tallest mountain in Uganda, Africa, where the zoo’s conservationists are fighting to boost giraffe numbers. Rothschild’s giraffes are one of Africa’s most at-risk mammals with fewer than 2,500 now remaining in the wild
CREDIT: Christopher Furlong/Getty Images

Tourists visit the Zhuo’er Mountain scenic area of Haibei Tibetan Autonomous Prefecture
CREDIT: Xinhua/Rex/Shutterstock

A silhouette is seen in front of flames at a wildfire in south-western France on 11 August. French officials warned that flare-ups could spread further into the country’s parched south-west, where fresh blazes have already blackened swathes of land this week. The prime minister is expected to meet with authorities battling the Landiras blaze south of Bordeaux, and further reinforcements are expected for the 1,100 firefighters on site, the prefecture of the Gironde department said
CREDIT: Thibaud Moritz/AFP/Getty Images

Market Closes for August 11^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1928, accepting the Republican presidential nomination, Herbert Hoover said, “We in America today are nearer to the final triumph over poverty than ever before in the history of any land.  The poorhouse is vanishing from among us…. We shall soon, with the help of God, be in sight of the day when poverty will be banished from the nation.” Just over one year later, the Great Depression arrived.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.5%, or 105.94 to 19,991.88 in Toronto.
The index advanced to the highest closing level since June 10.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 3.6%. Linamar Corp. had the largest increase, rising 10.6%.
Today, 137 of 238 shares rose, while 99 fell; 7 of 11 sectors were higher, led by energy stocks.
Insights
* So far this week, the index rose 1.9%
* The index declined 2.7% in the past 52 weeks. The MSCI AC Americas Index lost 7.2% in the same period
* The S&P/TSX Composite is 10% below its 52-week high on April 5, 2022 and 10% above its low on July 14, 2022
* The S&P/TSX Composite is up 2.1% in the past 5 days and rose 6.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.3 on a trailing basis and 12.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.18t
* 30-day price volatility fell to 15.17% compared with 15.37% in the previous session and the average of 18.06% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 92.0019| 2.7| 35/3
* Financials | 44.7002| 0.7| 22/7
* Consumer Staples | 14.8565| 1.8| 8/3
* Consumer Discretionary | 2.3543| 0.3| 10/3
* Communication Services | 2.0203| 0.2| 4/3
* Real Estate | 0.8428| 0.2| 13/9
* Health Care | 0.0529| 0.1| 2/4
* Utilities | -1.1697| -0.1| 7/9
* Information Technology | -7.8787| -0.7| 3/11
* Materials | -20.4387| -0.9| 20/31
* Industrials | -21.3911| -0.8| 13/16
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian Natural Resources | 19.6400| 3.6| 15.1| 33.4
* Cenovus Energy | 13.6000| 7.2| 25.0| 52.8
* Suncor Energy | 12.4600| 3.3| 62.0| 28.5
* Pan American Silver| -6.1910| -15.8| 250.8| -28.0
* Canadian Pacific | -6.9810| -1.1| -26.6| 13.3
* Canadian National | -9.2930| -1.4| -15.7| 4.4
US
By Rita Nazareth
(Bloomberg) — Stocks erased gains on speculation the rally that followed softer inflation data went too far, with the Federal Reserve still set to keep its monetary policy tight.
Bond yields climbed.
The S&P 500 edged lower after an advance that topped 1% earlier in the day and put the gauge near the 50% Fibonacci retracement level for the current bear market.
Several analysts attributed the recent surge to short-covering.
Tech underperformed following a runup that sent the Nasdaq 100 more than 20% above its June lows.
Big names like Tesla Inc. and Amazon.com Inc. sank.
Treasuries dropped, sending 30-year yields soaring nearly 16 basis points after an auction of the securities drew middling demand despite having cheapened into the bidding deadline.
A key measure of US producer prices unexpectedly slipped for the first time in more than two years, largely reflecting a drop in energy costs.
Similar to the consumer prices report on Wednesday, both the overall and core figures were softer than forecast.
Even so, inflation remains stubbornly high and will likely keep the Fed on an aggressive path to curb it.
Swaps continued to price in a 50-basis-point rate hike by the US central bank in September.
“We’ve had developments over the last couple of days that suggest that maybe the environment is getting a little bit better,” Anthony Saglimbene, global market strategist at Ameriprise, told Bloomberg Television. “But inflation is still
very, very high. There’s a lot of work for the Federal Reserve to continue to raise interest rates.”
A separate report showed applications for US unemployment insurance rose for a second week and held near the highest level since November — indicating continued moderation in the labor market.
UBS Global Wealth Management’s Mark Haefele reiterated his stance that “this is not the time to make big directional calls on the market” amid “ambiguity about the direction of the economy and Fed policy.”
Meantime, equities have been bolstered by a better-than-expected earnings season, with companies that have trailed analysts’ estimates actually being rewarded with the biggest stock gains in at least five years.
S&P 500 firms that missed expectations rose 0.6% after reporting results, according to data compiled by Bloomberg, in stark contrast to an average 1.2% decline seen during earnings seasons since 2017.
This suggests investors had already priced in negative sentiment before the reporting season kicked off.
What to watch this week:
* Euro-area industrial production, Friday
* US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 fell 0.6%
* The Dow Jones Industrial Average was little changed
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.2% to $1.0318
* The British pound fell 0.2% to $1.2190
* The Japanese yen fell 0.2% to 133.11 per dollar
Bonds
* The yield on 10-year Treasuries advanced 11 basis points to 2.89%
* Germany’s 10-year yield advanced eight basis points to 0.97%
* Britain’s 10-year yield advanced 11 basis points to 2.06%
Commodities
* West Texas Intermediate crude rose 2.3% to $94.09 a barrel
* Gold futures fell 0.7% to $1,801.50 an ounce
–With assistance from Andreea Papuc, John Viljoen, Jan-Patrick Barnert, Emily Graffeo, Vildana Hajric, Natalia Kniazhevich, Isabelle Lee, Elaine Chen, Felice Maranz and Edward Bolingbroke.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

It is in times of difficulty that great nations, like great men, display the whole energy of their character and become
an object of admiration to posterity. – Napoleon Bonaparte, 1769-1821,

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