August 14, 2023, Newsletter

Dear Friends,

Tangents: Happy Monday.

On Aug. 14, 1945, President Truman announced that Japan had surrendered unconditionally, ending World War II.  Go to article >>
1947: Pakistan gains independence from British rule, becoming an independent nation in the Indian subcontinent.

‘Ring of fire’ solar eclipse 2023: How to watch in-person (and virtually)
On Oct. 14, an epic ‘ring of fire’ annular solar eclipse will swoop across North America. Read More

Scientists uncover hidden math that governs genetic mutations
The ability of a gene to keep functioning despite mutations shows a surprising link to fundamental math. Read More

Strange, 300,000-year-old jawbone unearthed in China may come from vanished human lineage
Fragments of a jaw bone unearthed in China have a mosaic of features that are present in both modern and archaic humans. Read More

10 best cuisines in the world.  Feeling hungry? If not, you probably will be after seeing these culinary delights around the globe.

Mysterious question mark spotted by NASA telescope.  A cosmic object in deep space is bewildering some people, but scientists think they know what it might be.

PHOTOS  OF THE DAY

Ratnapura, Sri Lanka
An illuminated aircraft flightpath and the Milky Way were seen in the sky during the Perseid meteor shower associated with the comet Swift-Tuttle. The meteors are called the Perseids because they appear from the general direction of the constellation Perseus.  Photograph: Thilina Kaluthotage/NurPhoto/Shutterstock.

Kinderdijk, Netherlands
Wild geese silhouetted above a wind pump in South Holland. About a third of the country is below sea level and wind pumps prevent the land from being flooded.  Photograph: Michael Probst/AP

Cambridge, UK
Shire horses Bryn and Cosmo from Waldburg Shires stable harvesting the wildflower meadow at King’s College, Cambridge, before turning and carting the hay on a traditional wain. The bales will be used to propagate more wildflower meadows across the city, and the hay offered to local farmers as winter feed for livestock.
Photograph: Joe Giddens/PA
Market Closes for August 14^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1935, the Social Security Act was signed into law, ensuring retirement income for all working Americans. Payroll taxes were set at 1%, for both workers and employers, on the first $3,000 of earnings.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.6% at 20,290.54 in Toronto.
The move was the biggest since falling 1.5% on Aug. 2 and follows the previous session’s increase of 0.3%.
Nutrien Ltd. contributed the most to the index decline, decreasing 3.9%.
NorthWest Healthcare Properties Real Estate Investment Trust had the largest drop, falling 6.9%.
Today, 150 of 227 shares fell, while 75 rose; 9 of 11 sectors were lower, led by materials stocks.
Insights
* The index advanced 0.5% in the past 52 weeks. The MSCI AC Americas Index gained 4.1% in the same period
* The S&P/TSX Composite is 2.7% below its 52-week high on Feb. 2, 2023 and 13.5% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.3% in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 14.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.23t
* 30-day price volatility fell to 10.16% compared with 10.58% in the previous session and the average of 10.40% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -42.7138| -1.8| 8/42
Energy | -31.6482| -0.9| 9/30
Financials | -25.3837| -0.4| 9/19
Communication Services | -6.6751| -0.8| 0/5
Real Estate | -4.8171| -1.0| 4/17
Industrials | -3.7683| -0.1| 14/12
Utilities | -2.6869| -0.3| 7/9
Consumer Staples | -2.5624| -0.3| 4/7
Consumer Discretionary | -0.8245| -0.1| 7/7
Health Care | 0.8294| 1.4| 4/0
Information Technology | 3.2191| 0.2| 9/2
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Nutrien | -12.1200| -3.9| -39.2| -13.1
Constellation Software | -8.5860| -2.3| 23.7| 30.4
RBC | -6.8140| -0.6| -36.6| -0.3
Thomson Reuters | 1.4680| 0.8| -26.1| 15.9
Waste Connections | 2.1810| 0.6| -29.6| 6.1
Shopify | 9.0670| 1.5| -33.9| 60.3
US
By Vildana Hajric and Isabelle Lee
(Bloomberg) — Tech stocks had their best day in two weeks, helping US equities edge higher in light trading as traders weighed the prospect of a soft landing for the economy.
Treasuries fell.
The tech-heavy Nasdaq 100 rose 1.2% as AI-favorite Nvidia Corp. and other technology giants drove Monday’s advance.
On Friday, the tech-heavy benchmark had notched its longest weekly losing streak this year, the gauge has slid 3.5% in August.
Smaller stocks were under pressure with the Russell 2000 touching the lowest in a month as risk-appetite waned.
August is typically a slow month due to low liquidity and moves in either direction should not be taken seriously, according to Jason Draho, head of asset allocation Americas at UBS Global Wealth Management.
“The fundamental outlook for the US economy hasn’t materially changed in the past two weeks,” Draho wrote.  “Investors should take any data point or two and week-to-week market moves with a grain of salt, especially during the summer slowdown.”
Treasury yields wavered before ticking higher as high-grade corporate bond sales weighed on prices.
The policy sensitive two-year extended an advance into the fourth day to 4.96%, while he 10-year traded at 4.19%.
Traders are betting interest rates will outpace inflation for years to come while investors sitting on record first-half gains are having to contend with central bankers warning they are in no rush to cut interest rates.
“Some retracement of the broad market since July 31 suggests to us a pause that refreshes has likely occurred, rather than the end of the bull market,” John Stoltzfus, chief investment strategist at Oppenheimer & Co., wrote in a research note. “We remain of the view based on improving economic and corporate fundamentals that the US economy could actually skirt a recession this cycle.”
Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, takes a dimmer view saying the economy is already in a rolling recession that will hit the services sector next.
“Consumption, profit margins and corporate pricing power are yet to be reset, as the delayed impact of tighter policy should ultimately pressure nominal gains,” she wrote.
Updates from China unnerved markets on Monday amid concerns about Country Garden Holdings Co. and private-wealth manager, Zhongzhi Enterprise Group Co. Country Garden, once China’s biggest developer, has emerged as the latest flashpoint of the country’s property woes.
“The more days that go by without a comprehensive fiscal stimulus plan the more clear it becomes there will not be one,” Brad Bechtel, a Jefferies strategist said of China’s central bank. “The big bazooka is not coming.”
Focus later this week will be on minutes of the Federal Reserve’s latest policy meeting as traders seek clues on the central bank’s next move.
Investors who’d bet on a pivot to easier policy this year are having to adjust their bets as officials signal they will keep interest rates higher for longer.
In emerging markets, Argentina’s already-distressed debt sagged after a populist who vowed to burn down the central bank won surprisingly strong support in a primary vote.

The greenback strengthened while the offshore yuan fell to its weakest level since November and the ruble crashed through the level of 100 to the dollar for the first time since March.
In commodities, gold and crude slumped.

Corporate Highlights:
* Hawaiian Electric Industries Inc. plunged by a record 34% on concern that its power lines may be linked to the deadly Maui wildfires.
* US Steel Corp. surged 37% after the company rejected a $7.25 billion takeover offer from peer Cleveland-Cliffs Inc. and said it will instead start a review of its strategic options.
* Tesla Inc. slipped 1.2%, triggering a selloff for other producers of electric vehicles, after it rolled out a new round of price cuts in China.
* Nikola Corp. plummeted after the manufacturer announced it will recall trucks and temporarily stop sales after several battery fires.
Key events this week:
* China medium-term lending, retail sales, industrial production, fixed-asset investment, FX net settlement, Tuesday
* Japan industrial production, GDP, Tuesday
* UK jobless claims, unemployment, Tuesday
* US retail sales, empire manufacturing, business inventories, cross-border investment, Tuesday
* Reserve Bank of Australia policy minutes, Tuesday
* Federal Reserve Bank of Minneapolis President Neel Kashkari speaks, Tuesday
* China property prices, Wednesday
* Eurozone industrial production, GDP, Wednesday
* UK CPI, Wednesday
* US FOMC minutes, housing starts, industrial production, Wednesday
* US initial jobless claims, US Conf. Board leading index, Thursday
* Eurozone CPI, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.6% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.2%
* The Dow Jones Industrial Average was little changed
* The MSCI World index was little changed
* The Russell 2000 Index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.4% to $1.0905
* The British pound fell 0.1% to $1.2681
* The Japanese yen fell 0.3% to 145.46 per dollar
Cryptocurrencies
* Bitcoin fell 0.3% to $29,322.86
* Ether fell 0.7% to $1,839.81
Bonds
* The yield on 10-year Treasuries advanced three basis points to 4.19%
* Germany’s 10-year yield advanced one basis point to 2.64%
* Britain’s 10-year yield advanced four basis points to 4.57%
Commodities
* West Texas Intermediate crude fell 0.8% to $82.55 a barrel
* Gold futures fell 0.3% to $1,939.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cecile Gutscher.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
We all have strength enough to endure the misfortunes of others. –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