August 5, 2021 Newsletter

Dear Friends,

Tangents:
2011 Standard & Poor’s lowered the United States’ AAA credit rating by one notch to AA-plus.  Go to article »

Hubble captures a stunning image of squabbling galaxies.  If you thought the rivalry with your sibling was a big deal, you might want to check this out. A triplet of galaxies is locked in a gravitational tug-of-war. 

Star Wars hotel comes with out-of-this-world price tag.  You might need more than the Force to be with you if you’re staying here. You may have to shell out $6,000 for two nights.

Giraffes are as socially complex as elephants.  We have truly misunderstood our long-necked friends, and we are sorry. 

The streaming market keeps getting bigger

PHOTOS OF THE DAY

Heptathlon athletes pose for a group photo after competing in the Women’s 800m at the Olympic Stadium, Tokyo, Japan.
CREDIT: REUTERS/FABRIZIO BENSCH

Workers stand on boats to hang colourful sheets of cotton out to dry above the tranquil waters of a floating village on Inle Lake, Myanmar. Having been weaved in the village the dyed cotton is dried for around a day before being sold at nearby markets as curtains, clothes and table cloths.
CREDIT: SARAH WOUTERS/SOLENT NEWS & PHOTO AGENCY

Flames consume a home on Highway 89 as the Dixie Fire tears through the Greenville community of Plumas County, California. The fire levelled multiple historic buildings and dozens of homes in central Greenville. 
CREDIT: AP PHOTO/NOAH BERGER|

Market Closes for August 5^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1861, federal income tax was inflicted on the public for the first time, as the Revenue Act of 1861 became law, assessing a tax of 3% on all personal income in excess of $800 a year to help pay for the Civil War.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks bounced back from Wednesday’s losses to reach a new record on Thursday.
The S&P/TSX Composite index rose 0.2% in Toronto.
Health care, financials were the best performers, while materials stocks were the worst.
On the M&A front, Canada’s antitrust agency says it has received court orders to help its review of Rogers Communications Inc.’s proposed acquisition of Shaw Communications Inc.
Commodities:
* Western Canadian Select crude oil traded at a $13.55 discount to West Texas Intermediate
* Spot gold fell 0.4% to $1,804.56 an ounce
FX/ Bonds:
* The Canadian dollar rose 0.3% to C$1.2500 per U.S. dollar
* The 10-year Canada government bond yield rose about 4 basis points to 1.169%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose 0.2 percent at 20,375.48 in Toronto. The move follows the previous session’s decrease of 0.2 percent. Thomson Reuters Corp. contributed the most to the index gain, increasing 5.6 percent. Organigram Holdings Inc. had the largest increase, rising 7.7 percent. Today, 136 of 229 shares rose, while 89 fell; 8 of 11 sectors were higher, led by financials stocks.
Insights
* So far this week, the index rose 0.4 percent
* The index advanced 23 percent in the past 52 weeks. The MSCI AC Americas Index gained 34 percent in the same period
* The S&P/TSX Composite is 0.3 percent below its 52-week high on Aug. 4, 2021 and 32.1 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 0.7 percent in the past 5 days and rose 0.5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 21.1 on a trailing basis and 16.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.19t
* 30-day price volatility little changed to 8.82 percent compared with 8.82 percent in the previous session and the average of 8.23 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 44.2775| 0.7| 22/6
* Energy | 12.2289| 0.5| 16/7
* Industrials | 10.3197| 0.4| 19/10
* Health Care | 7.2088| 3.3| 9/0
* Utilities | 5.6132| 0.6| 14/2
* Communication Services | 5.5127| 0.6| 5/2
* Consumer Discretionary | 0.6022| 0.1| 10/2
* Real Estate | 0.5159| 0.1| 15/10
* Consumer Staples | -3.0416| -0.4| 6/7
* Information Technology | -4.7262| -0.2| 9/3
* Materials | -32.7558| -1.4| 11/40
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Thomson Reuters | 8.6570| 5.6| 200.9| 34.5
* Royal Bank of | | | |
* Canada | 7.1490| 0.6| 78.1| 22.3
* Bank of Montreal | 6.6770| 1.2| -22.1| 29.6
* Restaurant Brands | -4.5410| -2.6| 76.7| 2.6
* Barrick Gold | -7.4370| -2.2| 22.4| -7.9
* Shopify | -16.2400| -1.1| -17.2| 34.4

US
By Vildana Hajric
(Bloomberg) — U.S. equities gained ahead of Friday’s jobs report as investors balanced corporate results and jobless claims against the economic threat of the delta virus variant. The S&P 500 and Nasdaq 100 rose to record highs, with Booking Holdings Inc., Fox Corp. and MercadoLibre Inc. higher after earnings. Meanwhile, the dollar was weaker, gold fell and Treasuries slid after initial unemployment claims declined for a second week. In Europe, the Stoxx 600 Index also notched an all-time high following more mixed corporate earnings. Drugmakers Novo Nordisk A/S and Merck KGaA gained after raising forecasts while Bayer AG plunged on margin concerns. The pound also extended a gain against the greenback after the Bank of England left its benchmark interest rate unchanged. “This continues to be a favorable market for equities and will probably remain that way as long as the Fed stays accommodative and companies’ earnings continue to rebound,” Carter Henderson, portfolio manager at Fort Pitt Capital Group, said by phone. “That being said, the market is up 17% for the year. We believe room to the upside is probably limited.” The U.S. job market remains a key window onto the economic outlook, with the latest reports showing a much softer-than-expected ADP employment report but a record expansion for U.S. service industries.
Data on new unemployment claims Thursday also suggested incremental improvement, with the focus now turning to Friday’s key non-farm payrolls numbers. “While jobless claims have been a bit erratic over the last few months, we’re starting to see less file for unemployment week over week, suggesting that more are taking jobs. And the historic low on the trade deficit front is a testament to the demand we’re seeing from consumers,” Mike Loewengart, managing director of investment strategy at E*Trade Financial, said.  “So while there may be supply shortages on the labor and goods front, it’s encouraging to see robust demand in the face of delta fears weighing on investors.” Crude oil was higher after several days of losses. Bitcoin rose above $40,000. And in Asia, equities edged up in Japan but slipped in Hong Kong and China.

Here are some key events to watch this week:
* Reserve Bank of India monetary policy decision, briefing Friday
* The U.S. jobs report is expected to show another robust month of hiring Friday

These are 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 0.7%
* The Dow Jones Industrial Average rose 0.8%
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.1836
* The British pound rose 0.3% to $1.3931
* The Japanese yen fell 0.2% to 109.75 per dollar
Bonds
* The yield on 10-year Treasuries advanced four basis points to 1.22%
* Germany’s 10-year yield was little changed at -0.50%
* Britain’s 10-year yield advanced one basis point to 0.52%
Commodities
* West Texas Intermediate crude rose 1.5% to $69.20 a barrel
* Gold futures fell 0.4% to $1,806.70 an ounce
–With assistance from Robert Brand.
Have  a lovely evening.

Be magnificent!
As ever,

Carolann

Omnia Romae cum pretio.  (Everything in Rome has its price.) –Juvenal, 55 AD-127 AD.

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