August 18, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
August 18, 1920: The Nineteenth Amendment is ratified after Tennessee, by just one vote becomes the 36^th state to approve it, ending the 72-year fight to win women the right to vote in the United States.
August 18, 1969: The Woodstock Music and Art Fair in Bethel, N.Y., concluded with a mid-morning set by Jimi Hendrix. Go to article »
1872: First mail-order catalog published.
1960: First Birth Control pills.

Robert Redford, b. 1937.
Rosalynn Carter, b. 1927.

Priscilla Presley remembers Elvis on the 45th anniversary of his death.  Presley, who was married to the king of rock and roll, was joined by over 30,000 fans this week for a candlelight vigil to honor her late husband.

Scientists discover a 5-mile wide undersea crater.  A massive crater was found off the coast of West Africa. No, it wasn’t caused by the asteroid that doomed the dinosaurs, but scientists say it did slam into the Earth’s surface around the same time.

Japan wants young people to drink more alcohol.  Yes, you read that correctly. The Japanese government has launched a contest to find new ways to encourage young people to drink more because the country’s alcohol sales and liquor tax revenues have plummeted. 

Banning trans fats reduced heart attacks in Denmark.
PHOTOS OF THE DAY

A surfer entering the North Sea in Northumberland
CREDIT: Owen Humphreys/PA

France’s Vahine Fierro competes in the Outerknown Tahiti Pro 2022, the Women’s WSL Championship Tour. For the first time since 2006, members of the women’s World Surf League are competing in Teahupo’o, a wave respected and feared by board-riders worldwide
CREDIT: Jerome Brouillet/AFP/Getty Images

Beluga whales underwater in the murky waters of the Churchill River near Hudson Bay. Several thousand tourists come every year to the small town of Churchill in northern Manitoba to observe the whales
CREDIT: Olivier Morin/AFP/Getty Images

Market Closes for August 18^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1982, as a bull market suddenly materialized out of nowhere, daily trading volume on the New York Stock Exchange exceeded 100 million shares for the first time, with 132,681,120 shares changing hands.
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian equities gained, as energy weighed on the index with oil prices gaining for a second day.
The S&P/TSX Composite rose 0.4% at 20,265.37 in Toronto.
The move follows the previous session’s decrease of 0.4%.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.9%.
Athabasca Oil Corp. had the largest percentage increase, rising 9.0%.
Today, 151 of 238 shares rose, while 82 fell; 3 of 11 sectors were higher. 
Insights
* So far this week, the index rose 0.4%
* The index was little changed in the past 52 weeks. The MSCI AC Americas Index lost 4.6% in the same period
* The S&P/TSX Composite is 8.8% below its 52-week high on April 5, 2022 and 11.5% above its low on July 14, 2022
* The S&P/TSX Composite is up 1.4% in the past 5 days and rose 9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.7 on a trailing basis and 12.6 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$3.22t
* 30-day price volatility fell to 13.32% compared with 14.11% in the previous session and the average of 16.94% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 69.0385| 2.0| 35/1
* Materials | 21.5110| 1.0| 45/6
* Financials | 13.8517| 0.2| 22/7
* Consumer Discretionary | -0.8577| -0.1| 7/6
* Real Estate | -1.1869| -0.2| 9/14
* Communication Services | -1.4041| -0.1| 2/4
* Health Care | -1.6419| -2.1| 1/6
* Utilities | -2.0418| -0.2| 8/8
* Consumer Staples | -2.6636| -0.3| 5/6
* Information Technology | -3.4604| -0.3| 3/9
* Industrials | -7.2146| -0.3| 14/15
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian Natural Resources | 16.0600| 2.9| 80.3| 35.5
* Enbridge | 11.4400| 1.5| 14.2| 13.4
* Suncor Energy | 9.5390| 2.4| 6.0| 34.9
* Waste Connections | -2.7980| -0.9| -5.4| 6.8
* Shopify | -3.1460| -0.8| -25.0| -72.6
* Canadian Pacific | -3.9700| -0.6| 9.2| 16.5
US
By Stephen Kirkland
(Bloomberg) — US stocks ended the day higher after swinging between modest gains and losses as mixed economic and earnings data failed to spark a broad conviction trade.
The dollar and bonds also rose.
The S&P 500 rose 0.2%, with volumes holding about 20% below the 30-day average exacerbating price swings.
Light trading also typified the Nasdaq 100, which was 0.3% higher after falling 0.5%.
Treasury yields stayed lower after comments from Federal Reserve officials backing rate hikes.
Signs of strength in demand for labor came from the weekly US jobless claims data falling for the first time in three weeks, while a gauge of manufacturing activity in the Philadelphia area unexpectedly expanded in August for the first
time in three months, though the outlook remained weak.
Meanwhile, existing-home sales fell for a sixth straight month, the latest indication of the housing market’s rapid decline.
In corporate news, Cisco Systems Inc. rose after issuing an upbeat forecast for quarterly sales as chip-supply shortages ease and the company is able to fill more orders.
Bed Bath & Beyond Inc. plunged after Ryan Cohen’s RC Ventures said it might sell as much as 7.78 million shares in the retailer.
Kohl’s Corp. dropped after the department store operator cut its full-year earnings and sales guidance for the second straight quarter as inflation suppresses demand.
Following the equity rally from June lows, sentiment turned fragile Wednesday after the Fed minutes signaled inflation-busting rate hikes will continue despite a weakening economy.
Further clues for policy makers’ views may come at the Fed’s annual symposium in Jackson Hole, Wyoming next week.
“With Jackson hole kicking off in a week, that already is now top of mind — I would say the minutes, if you were hoping to see dovish, you got a seven out 10,” Alex Chaloff, co-head of investment strategies at Bernstein Private Wealth Management, said by phone. “If you just think about the disconnect between earnings and what’s gone on in markets, this is a macro driven market right now. Inflation has peaked and the numbers will demonstrate that we’ve rolled over.”
In comments Wednesday from Fed officials, St. Louis Fed President James Bullard told the Wall Street Journal he backed another 75 basis-point increase at next month’s meeting.
Meanwhile, Minneapolis Fed’s Neel Kashkari said the Fed had “more work to do” in raising rates to curb inflation.
Zhiwei Ren, portfolio manager at Penn Mutual Asset Management, attributed the rally from the mid-June lows to fundamentals and technicals.
“On the economy side, I think recently you’re seeing data that’s just working the way the Fed was hoping — inflation is coming down and the job numbers are still robust. The fear of recession is much, much lower now — a lot of people are talking about a soft landing,” Ren said.
As for technicals, futures positioning was very short, he said. “So in that kind of background, if you have some good news, then people have to buy back the equities they sold, and I think that’s what’s happened.”
Oil rose for a second day as a bullish US stockpile report eased fears of an economic slowdown.
West Texas Intermediate futures traded back around $90 a barrel..
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 rose 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.6%
* The euro fell 0.8% to $1.0094
* The British pound fell 0.9% to $1.1936
* The Japanese yen fell 0.6% to 135.89 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 2.88%
* Germany’s 10-year yield advanced two basis points to 1.10%
* Britain’s 10-year yield advanced two basis points to 2.31%
Commodities
* West Texas Intermediate crude rose 2.9% to $90.70 a barrel
* Gold futures fell 0.2% to $1,773 an ounce
–With assistance from Cormac Mullen, Andreea Papuc, Tassia Sipahutar, Srinivasan Sivabalan, Isabelle Lee and Vildana Hajric.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

But where I feel that people like us understood the situation better than so-called experts,
is not in any power to foretell specific events, but in the power to grasp
what kind of world we are living in. -George Orwell, 1903-1950.

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