Category: Events

Dear Friends,

Tangents:
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

Before and after satellite images show lakes appearing across Sahara after deluge of rain soaks desert
Lakes appearing in the Sahara desert captured in satellite images after a cyclone dumped a years’ worth of rain on northern Africa in just a few days.

Tiny photosynthetic aliens could be lurking in hidden bubbles in Mars’ ice — and could soon be replicated on Earth
A new NASA-led study suggests that photosynthetic microbes could thrive in hidden bubbles of meltwater below patches of ice on Mars. This could be one of the easiest places to search for extraterrestrial life “anywhere in the universe,” the team says.

2,000-year-old temple from ‘Indiana Jones civilization’ found submerged off Italy
An ancient temple made by Arabian immigrants from the Nabataean culture has finally been found off the Italian coast near Naples.

Largest known prime number, spanning 41 million digits, discovered by amateur mathematician using free software
The largest known prime number has been discovered, smashing the previous record by more than 16 million digits.

1st wheel was invented 6,000 years ago in the Carpathian Mountains, modeling study suggests
It’s possible that the wheel was invented by copper miners in the Carpathian Mountains up to 6,000 years ago, according to a modeling study that uses techniques from structural mechanics.

Doctors no longer recommend ‘self-checks’ for breast cancer — here’s what to know
Breast self-exams used to be recommended as a part of routine breast cancer screening. Here’s why the guidelines changed and what experts recommend instead. Read more.

PICTURES OF THE DAY

Lancashire, UK
‘Starlings fighting for food in an autumn garden in Lytham St Annes.’
Photograph: Victor Burnside

Patagonia, Chile
‘This photo was taken on Grey Lake in Torres del Paine national park. I had no idea icebergs could be this beautiful blue.’
Photograph: John Whitehurst

London, UK
‘While waiting to go to a late-night concert (Tinariwen) at the Royal Albert Hall at the end of August this year, the sky lit up with this amazing sunset. I thought this group of figures on the memorial gave the image an apocalyptic feel.’
Photograph: Jim Turner
Market Closes for October 23^rd, 2024

Market Index	Close	Change
Dow Jones	42514.95	-409.94
		-0.95%
S&P 500	5797.42	-53.78
		-0.92%
NASDAQ	18276.66	-296.47
		-1.60%
TSX	24573.62	-143.09
		-0.58%

International Markets

Market Index	Close	Change
NIKKEI	38104.86	-307.10
		-0.80%
HANG SENG	20760.15	+261.20
		+1.27%
SENSEX	80081.98	-138.74
		-0.17%
FTSE 100*	8258.64	-47.90
		-0.58%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.264	3.234
CND. 30 Year Bond	3.413	3.388
U.S. 10 Year Bond	4.2456	4.2076
U.S. 30 Year Bond	4.5182	4.4965

Currencies

BOC Close	Today	Previous
Canadian $	0.7227	0.7237
US $	1.3837	1.3819

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4919	0.6703
US $	1.0783	0.9274

Commodities

Gold	Close	Previous
London Gold Fix	2736.45	2736.45
Oil
WTI Crude Future	71.26	72.09

Market Commentary:
📈 On this day in 1868, memberships, or “seats,” at the New York Stock Exchange went on sale for the first time. The price for a seat peaked at around $4 million in 2005, before NYSE went public and moved to a licensing model the following year.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 0.6%, or 143.09 to 24,573.62 in Toronto.
The move was the biggest since falling 0.9% on Sept. 6.
Shopify Inc. contributed the most to the index decline, decreasing 2.3%.
Seabridge Gold Inc. had the largest drop, falling 6.4%.
Today, 170 of 223 shares fell, while 52 rose; 9 of 11 sectors were lower, led by energy stocks.
Insights
* This year, the index rose 17%, heading for the best year since 2021
* This month, the index rose 2.4%
* The index advanced 29% in the past 52 weeks. The MSCI AC Americas Index gained 37% in the same period
* The S&P/TSX Composite is 1.4% below its 52-week high on Oct. 21, 2024 and 31.5% above its low on Oct. 27, 2023
* The S&P/TSX Composite is little changed in the past 5 days and rose 2.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.6 on a trailing basis and 17.2 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$3.92t
* 30-day price volatility rose to 7.29% compared with 7.17% in the previous session and the average of 9.03% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -54.3533| -1.3| 3/38
Information Technology | -33.3623| -1.6| 2/8
Materials | -27.9546| -0.9| 9/43
Industrials | -11.7723| -0.4| 8/19
Utilities | -7.4033| -0.8| 2/13
Consumer Staples | -7.1999| -0.7| 0/11
Financials | -5.6251| -0.1| 13/14
Real Estate | -1.3851| -0.3| 6/13
Health Care | -0.5017| -0.6| 1/3
Communication Services | 1.1984| 0.2| 4/1
Consumer Discretionary | 5.2948| 0.6| 4/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Shopify | -22.0700| -2.3| -43.0| 6.8
Cameco | -10.7000| -4.5| 30.4| 31.0
Constellation Software | -9.2700| -1.5| -37.5| 31.8
Agnico Eagle Mines Ltd | 3.6040| 0.9| 10.7| 68.8
RBC | 4.2510| 0.3| 57.7| 29.3
Restaurant Brands | 4.3840| 2.0| -45.1| -1.8
US
By Rita Nazareth
(Bloomberg) — Big tech climbed in late hours as Tesla Inc.
kicked off the “Magnificent Seven” earnings season with solid results.
Bond yields rose on bets the Federal Reserve will take a measured approach on rate cuts.
Following a stock-market selloff on Wednesday, Wall Street pointed to a rebound led by its most-influential group.
A $300 billion exchange-traded fund tracking the tech-heavy Nasdaq 100 (QQQ) gained after the close of regular trading.
Tesla jumped 9% as Elon Musk’s electric-vehicle giant also indicated it expects another strong quarter of deliveries, saying it anticipates higher volumes for the full year.
“Earnings season is heating up. We believe there is continued upside ahead for stocks, especially now that we are entering a seasonally strong period of the year for markets,” said David Laut at Abound Financial.
After last week’s rally to fresh all-time highs, equities have taken a breather, with investors fretting over a number of near-term risks.
The next three weeks capture big tech earnings, October’s payrolls report, and the US election, followed by the Fed meeting.
“Despite the possibility of more volatility as we get deeper into earnings season and close in on the November election, the market’s longer-term outlook remains solid,” said Daniel Skelly at Morgan Stanley’s Wealth Management.
“And even though this week’s move is a reminder that even the strongest trends have setbacks, so far, this has been a run-of-the-mill pullback for the major indexes.”
The S&P 500 fell 0.9%.
The Nasdaq 100 dropped 1.6%.
The Dow Jones Industrial Average slipped 1%.
International Business Machines Corp. declined as its revenue underwhelmed.
T-Mobile US Inc. raised its forecast for subscribers after a strong quarter.
Treasury 10-year yields rose three basis points to 4.23%.
The dollar rose.
The yen hit the lowest in almost three months, reviving concern that Japan may intervene.
The loonie slid after the Bank of Canada stepped up the pace of easing.
To Jonathan Krinsky at BTIG, equities are finally noticing the moves in bonds and the dollar.
That’s a stark contrast to the action in the last couple of weeks, with the bullish narrative being that bonds were re-pricing to where they should be based on the stronger-than-anticipated economy, he noted.
“While that might be fair in the big picture, markets are always concerned with the velocity of the move rather than the overall level, and the fact that stocks didn’t flinch in the face of those moves suggested complacency,” Krinsky said.
“Whether this is the start of the pre-election jitters or not, we continue to see downside risk for equities broadly over the coming weeks, with an SPX pullback into the 5,500-5,650 zone a decent probability.”
The price of options that protect against an extended slump in Treasuries has soared to the highest this year amid concerns that losses may deepen.
Meantime, swap prices reflect less than a 100% certainty that the central bank reduces rates at each of its two remaining policy meetings this year.
The bond market is also trimming bets on the degree of Fed rate reductions over the next year.
“The price of options to hedge against Treasury losses is soaring,” said Andrew Brenner at NatAlliance Securities.
“In the US, it is about the election and potential sweep. That is what is being built into the rate structure, which is giving the vigilantes the green light. It will reverse, but it might take a severe employment number or a surprise in the election.”
“We would caution investors from reading too much into the recent rise in bond yields,” said Tiffany Wilding at Pacific Investment Management Co.
“Over the past six major Fed rate- cutting cycles, the change in the 10-year Treasury yield a month after the first cut has not provided a consistent signal about the magnitude of further cuts or whether the Us economy falls into recession.”
In fact, yields rose in the month after the first cut more often than not, she noted.
“Equity market performance in the first month after the Fed starts cutting has been a similarly bad predictor of future economic performance (and market returns),” Wilding said.
“Equities, more often than not, have tended to rise in the month after a cutting cycle begins, despite more significant divergence as time goes on.”
Looking at the same starkly different cycles of 1995 and 2007, equity returns (proxied by the rate-sensitive Russell 2000 of small caps) in the month after the first cut were positive in both cycles (at 4.6% and 6.9%, respectively), Wilding said.
However, equity market performance was down 4.4% in the year after the 2007 cut, while it was up 21% in the year following the 1995 adjustment.
“Even with the recent move in 10-year Treasury yields, we remain bullish on US large caps,” said Nicholas Colas at DataTrek Research.
“History says to discount the idea that rates will blow out because of deficit worries, at least over the near term. Instead, we see higher yields as a sign that economic growth remains robust and corporate earnings growth should continue over the coming quarters.”
“All else equal, the more rate cuts that are removed for next year the less of an outlier reading it becomes for the market to achieve 15% earnings growth,” said Ryan Grabinski at Strategas.
“However, additional rates cuts do not change the challenges the S&P faces with achieving that growth rate.”
Sales growth continues to show signs of slowing, and if analysts were suggesting rate cuts would reduce interest expense, that argument is beginning to recede, Grabinski said.
“Nearly 14% EPS margins continue to look more and more difficult to achieve,” he added.
“The question is when does something give.”
To Jose Torres at Interactive Brokers, the equity market is extremely fragile considering the headwinds that are lurking right around the corner.
“Earnings expectations are buoyant for next year, which increases the importance of forward guidance rather than past results,” he said.
“When considering that valuations are around 22 times next year’s profits, any disappointment in the outlook for the bottom line can significantly impact stock market performance.”

Corporate Highlights:
* Boeing Co. will likely continue to burn cash next year as it grapples with the challenges of ramping up production again following a prolonged labor strike and regulatory scrutiny over its factory processes.
* AT&T Inc. gained more mobile subscribers in the third quarter than analysts expected, continuing the winning streak from the previous period.
* Hilton Worldwide Holdings Inc. lowered its profit outlook, as the addition of new hotels to its global system failed to offset slower travel demand.
* Coca-Cola Co. dropped as investors weighed how much longer the soft-drink purveyor could raise prices without getting customers to buy more of its beverages.
* Spirit Airlines Inc. is in talks with Frontier Group Holdings Inc. about filing for bankruptcy to facilitate a takeover by the rival discount carrier, according to people with knowledge of the matter.
* Capital One Financial Corp.’s proposed $35 billion acquisition of Discover Financial Services is being investigated by New York Attorney General Letitia James, who said the deal would have “significant impact” on consumers in the state.
* Deutsche Bank AG said it will have to set aside more money than expected for souring debt, the second time this year it had to adjust its guidance.
* Kering SA warned that its annual profit will fall to the lowest level since 2016 as a slump in Chinese demand for luxury goods hampers a turnaround of the French fashion group’s biggest label, Gucci.

Key events this week:
* US new home sales, jobless claims, S&P Global Manufacturing and Services PMI, Thursday
* UPS, Barclays earnings, Thursday
* Fed’s Beth Hammack speaks, Thursday
* US durable goods, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.9% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.6%
* The Dow Jones Industrial Average fell 1%
* The MSCI World Index fell 0.9%
* Bloomberg Magnificent 7 Total Return Index fell 2.1%
* The Russell 2000 Index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.1% to $1.0786
* The British pound fell 0.4% to $1.2933
* The Japanese yen fell 1% to 152.58 per dollar
Cryptocurrencies
* Bitcoin fell 1.6% to $66,416.63
* Ether fell 4.7% to $2,509.01
Bonds
* The yield on 10-year Treasuries advanced three basis points to 4.23%
* Germany’s 10-year yield declined one basis point to 2.30%
* Britain’s 10-year yield advanced three basis points to 4.20%
Commodities
* West Texas Intermediate crude fell 1.1% to $70.98 a barrel
* Spot gold fell 1.2% to $2,716.54 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,

Shab
” Rise with the hour for which you were made.” — Georgia Douglas Johnson

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828

Dear Friends,

Tangents:
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 22, 1875: First telegraphic connection in Argentina.
October 22, 1879: Thomas Edison perfects the carbonized cotton filament light bulb
October 22, 1939: NBC becomes first network to televise a pro football game;

The ‘3-body problem’ may not be so chaotic after all, new study suggests
Scientists studying the infamous 3-body problem have discovered certain “islands of regularity” that emerge from the gravitational chaos.

80 million-year-old dinosaur ‘mini eggs’ unearthed at Chinese construction site are the smallest ever found — and belong to a never-before-seen T. rex relative
Half a dozen dinosaur eggs, each around the size of a grape, were recently saved from a construction site in China. Researchers say the tiny fossilized shells are exceptionally well preserved.

How many moons does Jupiter have?
How many moons does Jupiter have? Scientists have discovered dozens of them, but the answer may be more complicated than it seems.

National Geographic reveals its top destinations for 2025
The hottest revival trend in travel for 2025? That would be “fun,” according to National Geographic editor-in-chief Nathan Lump, who spoke exclusively to CNN ahead of the Tuesday reveal of Best of the World 2025, the brand’s annual list of the most thrilling and purposeful travel experiences for the year ahead.

PICTURES OF THE DAY

Ontario, Canada
A rainbow appears as people enjoy a warm afternoon on a tour boat at Niagara Falls
Photograph: Anadolu/Getty Images

Brüsewitz, Germany
An aerial shot with a drone shows trees with autumnal leaves in a mixed forest
Photograph: Jens Büttner/AP

​​​​​​​London, UK
Part of the Chew Valley hoard of 2,584 coins, dating from around the Norman invasion of Britain in 1066, displayed at the British Museum.
Photograph: Alastair Grant/AP
Market Closes for October 22^nd, 2024

Market Index	Close	Change
Dow Jones	42924.89	-6.71
		-0.02%
S&P 500	5851.20	-2.78
		-0.05%
NASDAQ	18573.13	+33.12
		+0.18%
TSX	24716.71	-6.62
		-0.03%

International Markets

Market Index	Close	Change
NIKKEI	38411.96	-542.64
		-1.39%
HANG SENG	20498.95	+20.49
		+0.10%
SENSEX	80220.72	-930.55
		-1.15%
FTSE 100*	8306.54	-11.70
		-0.14%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.234	3.234
CND. 30 Year Bond	3.388	3.390
U.S. 10 Year Bond	4.2076	4.1956
U.S. 30 Year Bond	4.4965	4.4994

Currencies

BOC Close	Today	Previous
Canadian $	0.7237	0.7227
US $	1.3819	1.3837

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4921	0.6702
US $	1.0798	0.9261

Commodities

Gold	Close	Previous
London Gold Fix	2736.45	2712.50
Oil
WTI Crude Future	72.09	70.56

Market Commentary:
📈 On this day in 1938, Chester F. Carlson created the world’s first photocopy in a lab in the Astoria neighborhood of Queens, N.Y. It took 21 years to bring his invention to market.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite declined slightly to 24,716.70 in Toronto.
Brookfield Corp. contributed the most to the index decline, decreasing 2.0%.
Goeasy Ltd. had the largest drop, falling 9.4%.
Today, 106 of 223 shares fell, while 115 rose; 7 of 11 sectors were lower, led by financials stocks.
Insights
* This year, the index rose 18%, heading for the best year since 2021
* This month, the index rose 3%
* The index advanced 29% in the past 52 weeks. The MSCI AC Americas Index gained 38% in the same period
* The S&P/TSX Composite is 0.8% below its 52-week high on Oct. 21, 2024 and 32.2% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.1% in the past 5 days and rose 3.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.6 on a trailing basis and 17.2 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$3.92t
* 30-day price volatility fell to 7.17% compared with 7.20% in the previous session and the average of 9.11% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -19.2191| -0.2| 9/18
Information Technology | -11.4160| -0.5| 5/5
Energy | -9.5073| -0.2| 19/22
Industrials | -5.9205| -0.2| 8/19
Utilities | -5.8770| -0.6| 3/12
Consumer Discretionary | -5.2955| -0.6| 3/8
Communication Services | -1.8530| -0.3| 2/3
Health Care | 0.8221| 1.1| 3/1
Consumer Staples | 0.8496| 0.1| 5/6
Real Estate | 1.6241| 0.3| 18/2
Materials | 49.1704| 1.5| 40/10
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Brookfield Corp | -15.4900| -2.0| 3.8| 41.3
Shopify | -13.1900| -1.4| -42.3| 9.3
Canadian Natural Resources | -5.6490| -0.8| -62.5| 12.9
Wheaton Precious Metals | 6.6880| 2.3| -21.5| 44.9
Canadian Pacific Kansas | 6.9100| 1.0| -7.1| 5.0
TD Bank | 8.7870| 0.9| -64.7| -7.5
US
By Rita Nazareth
(Bloomberg) — Stocks struggled in late hours after downbeat news from some key American companies, with traders also mulling prospects for a slower pace of Federal Reserve rate cuts.
A $600 billion exchange-traded fund tracking the S&P 500 (SPY) wavered after the close of regular trading.
Texas Instruments Inc., the biggest maker of analog chips, gave a weak outlook even after topping estimates.
Starbucks Corp. pulled guidance for 2025 after sales plunged for a third consecutive quarter.
McDonald’s Corp. plunged as its Quarter Pounders were linked to an E. coli outbreak in the US.
Equities finished mildly lower, with the S&P 500 seeing its first back-to-back drop in six weeks.
Exposure to the gauge has reached levels that were followed by a 10% slump in the past, according to Citigroup Inc. strategists led by Chris Montagu.
Long positions on futures linked to the benchmark are looking “particularly extended,” they said.
“We’re not suggesting investors should start to reduce exposure, but the positioning risks do rise when markets get extended like this,” they said.
The S&P 500 was little changed.
The Nasdaq 100 rose 0.1%.
The Dow Jones Industrial Average was little changed.
Treasury 10-year yields hovered near 4.20%.
The euro hit the lowest since early August amid bets the European Central Bank will keep lowering rates.
Oil advanced as traders tracked tensions between Israel and Iran.
Gold climbed to a fresh record.
Wall Street is paring back bets on aggressive policy easing as the US economy remains robust while Fed officials sound a cautious tone over the pace of future rate decreases.
Rising oil prices and the prospect of bigger fiscal deficits after the upcoming presidential election are only compounding the market’s concerns.
Since the end of last week, traders have trimmed the extent of expected Fed cuts through September 2025 by more than 10 basis points.
“Of course, higher yields do not have to be negative for stocks. Let’s face it, the stock market has been advancing as these bond yields have been rising for a full month now,” said Matt Maley at Miller Tabak + Co. “However, given how expensive the market is today, these higher yields could cause some problems for the equity market before too long.”
A string of stronger-than-estimated data points sent the US version of Citigroup’s Economic Surprise Index to the highest since April.
The gauge measures the difference between actual releases and analyst expectations.
“On the back of September’s strong economic data, markets have already priced a slower pace of cuts,” said Lauren Goodwin at New York Life Investments.
“If the Fed is able to move towards a 4% policy rate — still above the levels most believe represent the ‘neutral’ rate — then the equity market rally can continue.
Disruptions to that view make equity market volatility more likely.”
The last time US government bonds sold off this much as the Fed started cutting interest rates, Alan Greenspan was orchestrating a rare soft landing.
Two-year yields have climbed 34 basis points since the Fed reduced interest rates on Sept. 18 for the first time since 2020.
Yields rose similarly in 1995, when the Fed — led by Greenspan — managed to cool the economy without causing a recession.
In prior rate cutting cycles going back to 1989, two-year yields on average fell 15 basis points one month after the Fed started slashing rates.
Meantime, the International Monetary Fund said the US election is creating “high uncertainty” for markets and policymakers, given the sharply divergent trade priorities of the candidates.
That gap creates the risk of another potential round of volatility on global markets similar to the rattling August selloff.
“Presidents don’t control markets,” said Callie Cox at Ritholtz Wealth Management.
“Over time, the stock market’s common thread has been the economy and earnings, not who’s in the Oval Office. Be prepared for mood swings in markets as we get closer to Election Day.  But remember that election-fueled storms often dissipate quickly.”
As the earnings season rolls in, US companies are reaping the best stock-market reward in five years for beating profit expectations that were lowered in the run-up to the reporting season.
S&P 500 firms that posted better-than-estimated third-quarter earnings have outperformed the benchmark by a median of 1.74% on the day of reporting results, according to data compiled by Bloomberg Intelligence.
That’s the strongest rate in BI’s records going back to 2019.
At the same time, companies missing estimates trailed the S&P 500 by a median of 1.5%, a less severe underperformance than the 1.7% experienced in the second quarter, the data showed.
“This earnings season we are watching what companies are saying about inflation and the economy,” said Megan Horneman at Verdence Capital Advisors.
“In addition, their view on interest rates, especially if the Fed cannot be as aggressive as the market is pricing in at this point. It is good to see analysts getting realistic about 2025 earnings growth. However, at 15% earnings growth, we believe it is still too optimistic given the expectation for slower economic growth in 2025.”

Corporate Highlights:
* Verizon Communications Inc. reported revenue that missed analysts’ expectations, weighed down by lackluster sales of hardware such as mobile phones.
* 3M Co. increased the low end of its 2024 profit forecast and reported earnings that topped analyst estimates as a push to boost productivity gained traction.
* General Motors Co. signaled solid US demand for its highest- margin vehicles even as the broader market softens, posting better-than-expected results for the latest quarter and raising the low end of its full-year profit forecast.
* General Electric Co.’s sales fell short of Wall Street’s expectations last quarter, tempering enthusiasm for its improved profit outlook as the jet engine maker grapples with supply- chain limitations that are weighing on deliveries.
* Kimberly-Clark Corp., owner of the Scott toilet paper brand, lowered its full-year organic sales forecast after reporting weaker-than-expected results.
* Philip Morris International Inc. shares soared Tuesday after the company forecast higher-than-expected profit this year thanks to soaring demand for its Zyn nicotine pouches in the US.
* Lockheed Martin Corp.’s third-quarter revenue missed expectations, pulled down by weaker aeronautical sales and ongoing issues with its F-35 fighter jet program.
* L’Oreal SA posted disappointing sales last quarter as the beauty company suffers from worsening consumer demand in China.

Key events this week:
* Canada rate decision, Wednesday
* Eurozone consumer confidence, Wednesday
* US existing home sales, Wednesday
* Boeing, Tesla, Deutsche Bank earnings, Wednesday
* Fed’s Beige Book, Wednesday
* US new home sales, jobless claims, S&P Global Manufacturing and Services PMI, Thursday
* UPS, Barclays earnings, Thursday
* Fed’s Beth Hammack speaks, Thursday
* US durable goods, 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 rose 0.1%
* The Dow Jones Industrial Average was little changed
* The MSCI World Index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.2% to $1.0794
* The British pound was little changed at $1.2980
* The Japanese yen fell 0.2% to 151.13 per dollar
Cryptocurrencies
* Bitcoin fell 0.4% to $67,428.76
* Ether fell 1.8% to $2,625.8
Bonds
* The yield on 10-year Treasuries was little changed at 4.20%
* Germany’s 10-year yield advanced four basis points to 2.32%
* Britain’s 10-year yield advanced three basis points to 4.17%
Commodities
* West Texas Intermediate crude rose 2.2% to $72.09 a barrel
* Spot gold rose 1.1% to $2,748.60 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,

Shab
” When your work speaks for itself, don’t interrupt.”– Henry J Kaiser

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828

Dear Friends,

Tangents: Happy Monday.

October 21, 1805: Battle of Trafalgar: British Admiral Horatio Nelson defeats combined French and Spanish fleet.  Nelson shot and killed during battle.
On Oct. 21, 1879, Thomas Edison invented a workable electric light at his laboratory in Menlo Park, N.J.  Go to article >>

1967: Vietnam War protestors storm Pentagon.

Alfred Nobel, Creator of the Nobel Prize, b.1833.
Dizzy Gillespie, musician, b. 1917
S.T. Coleridge, poet, b. 1772

Why didn’t the Vikings colonize North America?
The Vikings landed in what is now Newfoundland, Canada around the year A.D. 1000. So why didn’t they colonize the region like other Europeans did centuries later?  Read More.

The universe may end in a ‘Big Freeze,’ holographic model of the universe suggests
New research suggests holographic dark energy could stop the universe’s expansion.   Read More.

‘An ancient, complex, and very serious game is going on’: The weird ways creatures feed in the open ocean
“In an environment where food is scarce, where there is nowhere to hide, and where the predators are probably faster than you are, most animals must find new ways to protect themselves.” Read More.

Iconic stage set for MLB World Series
The New York Yankees will face the Los Angeles Dodgers in the World Series, with Game 1 scheduled for Friday in Los Angeles.

Halloween could taste different this year
It’s Crunch time for candy companies with Halloween just around the corner. Here’s why you might see more non-chocolate treats in grocery aisles.

Long-lost copy of US Constitution sells for $9 million at auction
A rare copy of the US Constitution found in a filing cabinet sold for $9 million. Just eight are known to still exist and the other seven are publicly owned.

The origins of bubble tea, one of Taiwan’s most beloved beverages
Bubble tea — also known as boba tea — has become an unstoppable worldwide trend since it was invented in the 1980s. Read how it all started.
PICTURES OF THE DAY

Strasburg, Pennsylvania
A man rides his motorbike at sunset
Photograph: Charly Triballeau/AFP/Getty Images

Schierke, Germany
A steam train travels through the ‘Harz’ forest, damaged by bark beetle, at the 1,142-meter (3,743 feet) high Brocken mountain
Photograph: Matthias Schräder/AP

​​​​​​​Yancheng, China
An aerial photo shows the ‘tidal tree’ landscape of the Dongtai Tiaozini wetland in the coastal city of Yancheng in Jiangsu province, north of Shanghai
Photograph: Costfoto/NurPhoto/Rex/Shutterstock
Market Closes for October 21^st, 2024

Market Index	Close	Change
Dow Jones	42931.60	-344.31
		-0.80%
S&P 500	5853.98	-10.69
		-0.18%
NASDAQ	18540.01	+50.46
		+0.27%
TSX	24723.33	-99.21
		-0.40%

International Markets

Market Index	Close	Change
NIKKEI	38954.60	-27.15
		-0.07%
HANG SENG	20478.46	-325.65
		-1.57%
SENSEX	81151.27	-73.48
		-0.09%
FTSE 100*	8318.24	-40.01
		-0.48%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.234	3.128
CND. 30 Year Bond	3.390	3.290
U.S. 10 Year Bond	4.1956	4.0789
U.S. 30 Year Bond	4.4994	4.3885

Currencies

BOC Close	Today	Previous
Canadian $	0.7227	0.7245
US $	1.3837	1.3802

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4965	0.6682
US $	1.0815	0.9246

Commodities

Gold	Close	Previous
London Gold Fix	2712.50	2688.85
Oil
WTI Crude Future	70.56	70.67

Market Commentary:
📈 On this day in 1929, William Peter Hamilton, editor of The Wall Street Journal, predicted the demise of the bull market. He had already done so in 1927 and twice in 1928, so no one listened to him. This time the market crashed three days later.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.4% at 24,723.33 in Toronto.
The move was the biggest since falling 0.9% on Sept. 6 and follows the previous session’s increase of 0.5%.
Brookfield Corp. contributed the most to the index decline, decreasing 1.6%.
NexGen Energy Ltd. had the largest drop, falling 4.4%.
Today, 143 of 223 shares fell, while 76 rose; all sectors were lower, led by financials stocks.
Insights
* This year, the index rose 18%, heading for the best year since 2021
* This month, the index rose 3%
* The index advanced 29% in the past 52 weeks. The MSCI AC Americas Index gained 38% in the same period
* The S&P/TSX Composite is at its 52-week high and 32.3% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1% in the past 5 days and rose 3.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.7 on a trailing basis and 17.2 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$3.93t
* 30-day price volatility fell to 7.20% compared with 7.33% in the previous session and the average of 9.21% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -45.5276| -0.6| 5/21
Industrials | -15.8086| -0.5| 11/16
Information Technology | -12.3948| -0.6| 3/7
Energy | -8.1456| -0.2| 23/18
Real Estate | -6.2781| -1.2| 0/20
Consumer Staples | -4.1858| -0.4| 1/10
Communication Services | -2.0598| -0.3| 1/4
Consumer Discretionary | -1.8293| -0.2| 2/9
Utilities | -1.2574| -0.1| 4/10
Materials | -0.9962| 0.0| 25/26
Health Care | -0.7062| -0.9| 1/2
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Brookfield Corp | -12.5800| -1.6| -36.8| 44.2
RBC | -10.5800| -0.6| 188.1| 29.1
Canadian Pacific Kansas | -10.3700| -1.4| -51.4| 3.9
Canadian Natural Resources | 5.0550| 0.7| -62.2| 13.8
Restaurant Brands | 7.2180| 3.4| -70.0| -2.8
TD Bank | 7.3220| 0.8| -25.4| -8.4
US
By Rita Nazareth
(Bloomberg) — Stocks took a breather after notching their longest weekly rally this year, with traders gearing up for key earnings reports from Tesla Inc. to Boeing Co. and United Parcel Service Inc.
Following a relentless advance to all-time highs, equities dropped from nearly overbought levels.
In another sign of how greed has trumped fear, the S&P 500 hasn’t suffered back-to-back losses in about 30 sessions.
While a month with no consecutive down days may not sound like much, the current streak ranks among the very best since 1928, according to data compiled by SentimenTrader.
“The index remains overbought across multiple time frames and is still vulnerable to profit-taking over the short run,” said Dan Wantrobski, director of research at Janney Montgomery Scott.
Wall Street faces a big earnings hurdle this week, with roughly 20% of the S&P 500 companies scheduled to report.
The latest Bloomberg Markets Live Pulse survey shows respondents see Corporate America’s results as more crucial for the equity market’s performance than who wins the November election or even the Federal Reserve’s policy path.
The S&P 500 fell 0.2%, with all of its major groups but technology pushing lower.
The Dow Jones Industrial Average slid 0.8%.
Nvidia Corp. hit a record high, with the Nasdaq 100 up 0.2%.
The Russell 2000 retreated 1.6%.
Homebuilders tumbled.
United Parcel Service Inc. sank on a sell recommendation at Barclays Plc.
Boeing Co. rallied after a tentative agreement with its workers’ union.
US 10-year yields jumped 10 basis points to 4.19%.
They will test the 5% threshold in the next six months amid rising inflation expectations and concerns over fiscal spending, said T. Rowe Price’s Arif Husain.
Meantime, Torsten Slok at Apollo Global Management sees higher chances the Fed will leave rates unchanged in November as the economy powers ahead.
Oil climbed as China moved again to bolster its economy and traders tracked the risk to supplies from tensions in the Middle East.
Volatility is elevated for options on stocks, bonds and currencies alike as investors pay up for protection.
The risks are clear: a hotly contested US election, interest-rate decisions in the US and Europe, the threat of a wider Middle East conflict and quarterly earnings.
In the stock market, implied volatility is outpacing actual swings, and puts protecting against a selloff are favored over bullish calls.
To Matt Maley at Miller Tabak, no matter the reason, “we certainly cannot blame investors for buying some protection in the options market and/or gold.”
“With the stock market as expensive as it is (especially on a price/sales basis), it is much more vulnerable than usual when these kinds of political and geopolitical issues became significant concerns in the past,” he said.
Equities lost steam after the S&P 500 notched six straight weeks of gains.
Winning streaks of that length are relatively rare, occurring only 53 times since 1950 (roughly 8% of all six-week periods), according to Adam Turnquist at LPL Financial.
Looking ahead, the index has historically posted an average return of 0.2% the following week, with 58% extending to seven- week win streaks, he noted.
Forward six- and 12-month returns averaged 5.1% and 11.4%, respectively, with both periods generating above-average positivity rates.
“While the market is entering a potentially volatile period ahead of the election and facing overhead resistance near the upper end of its rising price channel, history suggests investors should buy dips as momentum tends to continue after a
six-week winning streak,” he noted.
“We believe there is continued upside ahead for stocks, especially now that we are entering a seasonally strong period of the year for markets,” said David Laut at Abound Financial.
“Earnings season is heating up and we will soon hear from big tech companies and the latest on their artificial intelligence spend. For big tech, this is the show-me-the-money quarter.”
This week, Tesla will likely face questions during its earnings call on production targets and regulatory challenges after the unveiling of its much-hyped Cybercab failed to enthuse investors and quell concerns over its recent vehicle sales.
Boeing will also have to mollify investors increasingly concerned over production delays, labor strife and depleted financial resources.
Reports from UPS, Norfolk Southern Corp. and Southwest Airlines Co. should reveal the combined impact of Hurricane
Helene and the three-day East Coast dockworker strike on the recent quarter.
Jeffrey Buchbinder at LPL Financial says the bar for third- quarter results is low, with analysts currently expecting only about a 3% increase in S&P 500 earnings per share.
“That low bar and a supportive economic environment point to potential upside,” he said. “However, stocks may already be pricing in solid results.”
Companies in the US benchmark gauge that have beaten profit estimates so far this season are being rewarded “more significantly” compared with the previous four quarters, according to Morgan Stanley strategists led by Michael Wilson.
They also noted that the revisions breadth for 2025 is “significantly outperforming” seasonality.
“As is typical, the early days of earnings season are sparking relatively strong price reactions,” said Bloomberg Intelligence strategists Gina Martin Adams and Wendy Soong.
“Both beats and misses are resulting in bigger-than-usual price moves.”
Stocks that surpassed third-quarter earnings or revenue estimates — or both — recorded an average one-day excess return to the index of 2.1%, 2.3% and 2.6%, more than double the longer-term average (for whole earnings seasons), they said.
Misses are likewise resulting in steeper selloffs of 3.8%, 2% and 3.7%, BI said.
Although the market has shown incredible resilience this year, with nine out of 10 positive months, we’re beginning to see parallels with the 2001–2006 period where tech valuations were high, according to Mark Hackett at Nationwide.
“Unlike the dot-com bubble, today’s leading tech firms have solid fundamentals, but the market is far from ‘normal’,” he noted. “High expectations are warning signs for potential instability in the next few years.
Investors should prepare for moderating returns and volatility, especially as cracks begin to appear beyond 2024.”
US stocks are unlikely to sustain their above-average performance of the past decade as investors turn to other assets including bonds for better returns, according to Goldman Sachs Group Inc. strategists including David Kostin.
The S&P 500 is expected to post an annualized nominal total return of just 3% over the next 10 years, they said.
That compares with 13% in the last decade, and a long-term average of 11%.
“Investors should be prepared for equity returns during the next decade that are toward the lower end of their typical performance distribution,” the team wrote in a note dated Oct. 18.

Corporate Highlights:
* SAP SE said its cloud revenue grew by 25% in the third quarter, as Europe’s biggest software company pushed customers to transition away from locally-installed legacy systems.
* Qualcomm Inc. unveiled a more powerful processor that’s designed to bring laptop-level capabilities to smartphones, helping the devices take advantage of new artificial intelligence tools.
* Microsoft Corp. is launching a set of artificial intelligence tools designed to send emails, manage records and take other actions on behalf of business workers, expanding an AI push that intensifies competition with rivals like Salesforce Inc.
* Spirit Airlines Inc. soared after the carrier secured more time to address a troublesome debt load that has raised the prospect of bankruptcy.
* Kenvue Inc. rallied after activist investor Starboard Value took a stake in the Tylenol maker with an eye toward making changes to boost the company’s stock price.

Key events this week:
* ECB’s Christine Lagarde is interviewed by Bloomberg Television, Tuesday
* BOE’s Andrew Bailey as well as ECB’s Klaas Knot and Robert Holzmann to speak at Bloomberg Global Regulatory Forum in New York, Tuesday
* Philadelphia Fed President Patrick Harker speaks, Tuesday
* Canada rate decision, Wednesday
* Eurozone consumer confidence, Wednesday
* US existing home sales, Wednesday
* Boeing, Tesla, Deutsche Bank earnings, Wednesday
* Fed’s Beige Book, Wednesday
* US new home sales, jobless claims, S&P Global Manufacturing and Services PMI, Thursday
* UPS, Barclays earnings, Thursday
* Fed’s Beth Hammack speaks, Thursday
* US durable goods, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.2%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World Index fell 0.4%
* The Russell 2000 Index fell 1.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.5% to $1.0815
* The British pound fell 0.5% to $1.2983
* The Japanese yen fell 0.8% to 150.79 per dollar
Cryptocurrencies
* Bitcoin fell 1.5% to $67,746.88
* Ether fell 1.2% to $2,679.24
Bonds
* The yield on 10-year Treasuries advanced 10 basis points to 4.19%
* Germany’s 10-year yield advanced 10 basis points to 2.28%
* Britain’s 10-year yield advanced eight basis points to 4.14%
Commodities
* West Texas Intermediate crude rose 1.6% to $70.35 a barrel
* Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
Accept the challenges so that you can feel the exhilaration of victory. –General George S. Patton, 1885-1945.

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 (Text Only)
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday.

October 18, 1867 The United States took possession of Alaska from Russia.  Go to article >>
October 18, 1921: Charles Strite granted U.S. Patent for his invention, the automatic pop-up toaster.

Chuck Berry, b. 1926.
Martina Navratilova, b. 1956

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PHOTOS OF THE DAY

Los Angeles, California, US
Comet C/2023 A3 (Tsuchinshan-Atlas) streaks across the sky over Joshua Tree national park
Photograph: Qian Weizhong/VCG/Getty Images

Ginger nuts … a red squirrel forages for food at the Widdale Red Squirrel Reserve in the Yorkshire Dales National Park, UK
Photograph: Danny Lawson/PA

Common cranes fly above a reservoir at sunset near Balmazújváros, eastern Hungary
Photograph: Zsolt Czeglédi/EPA
Market Closes for October 18^th, 2024

Market Index	Close	Change
Dow Jones	43275.91	+36.86
		+0.09%
S&P 500	5864.67	+23.20
		+0.40%
NASDAQ	18489.55	+115.94
		+0.63%
TSX	24822.54	+132.06
		+0.53%

International Markets

Market Index	Close	Change
NIKKEI	38981.75	+70.56
		+0.18%
HANG SENG	20804.11	+725.01
		+3.61%
SENSEX	81224.75	+218.14
		+0.27%
FTSE 100*	8358.25	-26.88
		-0.32%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.128	3.159
CND. 30 Year Bond	3.290	3.313
U.S. 10 Year Bond	4.0789	4.0906
U.S. 30 Year Bond	4.3885	4.3895

Currencies

BOC Close	Today	Previous
Canadian $	0.7245	0.7249
US $	1.3802	1.3796

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.5004	0.6665
US $	1.0871	0.9199

Commodities

Gold	Close	Previous
London Gold Fix	2688.85	2675.25
Oil
WTI Crude Future	70.67	70.39

Market Commentary:
📈 On this day in 1937, the stock market tumbled on rumors that the Roosevelt administration was planning a crackdown on Wall Street. The Dow Jones Industrial Average lost over 7%, a major dip in the middle of the Great Depression.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.5%, or 132.06 to 24,822.54 in Toronto.
Today, materials stocks led the market higher, as 9 of 11 sectors gained; 116 of 223 shares rose, while 105 fell.
Agnico Eagle Mines Ltd. contributed the most to the index gain, increasing 4.9%.
Iamgold Corp. had the largest increase, rising 16.6%.
Insights
* This year, the index rose 18%, heading for the best year since 2021
* So far this week, the index rose 1.4%, heading for the biggest advance since the week ended Sept. 13
* The index advanced 28% in the past 52 weeks. The MSCI AC Americas Index gained 35% in the same period
* The S&P/TSX Composite is at its 52-week high and 32.8% above its low on Oct. 27, 2023
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.8 on a trailing basis and 17.3 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$3.91t
* 30-day price volatility fell to 7.33% compared with 8.12% in the previous session and the average of 9.48% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 98.0931| 3.2| 39/13
Financials | 15.2933| 0.2| 13/14
Information Technology | 13.7695| 0.7| 5/5
Energy | 10.5844| 0.2| 15/25
Consumer Discretionary | 3.4549| 0.4| 7/4
Utilities | 3.2350| 0.3| 10/5
Communication Services | 1.3326| 0.2| 2/3
Consumer Staples | 0.7308| 0.1| 5/6
Health Care | 0.0936| 0.1| 3/1
Real Estate | -1.9134| -0.4| 6/14
Industrials | -12.6125| -0.4| 11/15
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Agnico Eagle Mines Ltd | 19.4500| 4.9| 17.0| 63.8
Brookfield Corp | 15.1900| 2.0| -15.8| 46.5
Shopify | 13.1100| 1.4| -33.1| 10.7
Fairfax Financial | -4.7110| -1.8| -41.7| 41.4
RBC | -4.7460| -0.3| 122.0| 29.9
Canadian Pacific Kansas | -9.6480| -1.3| 4.6| 5.5
US
By Rita Nazareth
(Bloomberg) — Wall Street traders wading through a slew of corporate results and signs the world’s largest economy is holding up drove stocks to their longest weekly advance in 2024.
On the eve of the 37th anniversary of the “Black Monday” market crash, equities hit all-time highs amid gains in most major groups.
The S&P 500 was up for a sixth straight week.
The gauge’s equal-weighted version — one that gives Target Corp. as much clout as Microsoft Corp. — also rose to a record on hopes the rally will broaden out.
Netflix Inc. jumped 11% on solid earnings.
Apple Inc. climbed 1.2% as sales of its newest iPhones in China soared.
American Express Co. sank 3.2% after trimming its revenue forecast.
The bulk of the growth in S&P 500 earnings continues to come from mega caps, with the “Magnificent Seven” expected to show an 18% rise in third-quarter profits, according to Bloomberg Intelligence.
While the other firms are seen posting an only 1.8% increase in earnings, their results are projected to accelerate to double-digit gains in the first quarter of 2025.
“Earnings season is off to the races, and despite some mixed signals, appears to be in good shape,” said Liz Young Thomas, head of investment strategy at SoFi. “We’re in the early innings though, and coming up on the final days before the election and the next Fed meeting. Never a dull moment.”
With the odds tilting toward both Donald Trump winning the US presidential election and Republicans controlling Congress, investors have started ramping up assets which had thrived in the wake of the former president’s 2016 victory, according to Bank of America Corp. strategist Michael Hartnett.
Price action in the past week shows banks, small caps and the dollar are “front-running 2016 bull moves,” Hartnett wrote in a note.
US equities and the greenback surged in the immediate aftermath of Trump’s win over Hillary Clinton in November 2016.
The S&P 500 rose 0.4%, notching its 47th record in 2024.
The Nasdaq 100 climbed 0.7%.
The Dow Jones Industrial Average was little changed.
The Russell 2000 of smaller firms barely budged Friday, but was up almost 2% this week.
Treasury 10-year yields fell one basis point to 4.08%.
The Bloomberg Dollar Spot Index slid 0.2%.
Oil saw its largest weekly decline in more than a year as the US revived a push to end the conflict in the Middle East and China’s crude demand slipped. Gold topped $2,700.
In a note titled “Rotation Nation,” Mike O’Rourke at JonesTrading said most of this week has been about the rally broadening out.
While tech advanced, the group is lagging behind several other S&P 500 industries.
He says the deceleration of inflation since mid-2024 has opened the door for rate cuts.
And now economic strength has added accelerant to the mix.
“Investors no longer need to crowd into the size and safety of the Magnificent Seven,” O’Rourke said. “Ironically, that crowding has the ‘Magnificent Seven’ collectively trading at more than twice the P/E multiple of the other 493 S&P 500 names. While the ‘Magnificent Seven’ leaders generally remain strong, the rotation has been real.”
Even as the S&P 500 jumped from one record to the next this year, indicators that gauge investor sentiment found that mood was subdued, given uncertainties about the Federal Reserve, geopolitics and the US election.
This week, however, optimism has returned, though its timing is flashing a bearish signal for stocks.
Ned Davis Research’s Daily Trading Sentiment Composite returned to its optimistic zone on Tuesday, and history says every time this happened in an election year, stocks had a middling run through Election Day — on Nov. 5 this year.
On the other hand, when sentiment was pessimistic as of mid-October, the benchmark index posted a 2.5% median gain over a similar period.
“The bottom line is that the recent return to optimism could weigh on the market heading into a tight election,” said Ed Clissold, chief US strategist at Ned Davis. However, if rising political uncertainty from here dampens optimism, that would set the stage for a post-election rally, he added.
“We believe the environment remains constructive for US equities,” said David Lefkowitz at UBS Global Wealth Management.
“Earnings growth is broadening out. While the election outcome adds a layer of uncertainty, we don’t think any potential policy changes stemming from the election will significantly alter the environment. Valuations are high in absolute terms, but we think they are reasonable in light of the macro environment.”
To Quincy Krosby at LPL Financial, it is highly unlikely that investors and traders alike will feel the anxiety of missing out if the technology sector delivers weaker than expected numbers and softer guidance.
“A pullback as we inch closer to overbought technical conditions could offer a modicum of support as we enter a crucial week for earnings and move closer to what big tech reports and even more important, what big tech sees ahead,” she said.
Chris Senyek at Wolfe Research says strong earnings revisions for the “Magnificent Seven” year-to date raise the bar to beat higher expectations relative to the other S&P 500 firms.
“We believe that this group will likely need to beat by a larger margin than last quarter to return to the market’s leadership,” he said. “Along a similar vein, we believe reasonable expectations for the “Other 493” provides a lowered bar for upside surprises and supports our call for market performance to continue to ‘broaden out’ into year-end.”
“Will S&P 493 beat the ‘Magnificent Seven’? That’s a tough call considering how well the ‘Magnificent Seven’ companies historically have expanded their revenues, earnings and profitability,” said Ed Yardeni, founder of his namesake research firm.
However, the “Magnificent Seven” stocks have been volatile and susceptible to bouts of price weakness primarily due to concerns about their valuations and slowing rates of growth, he said.
Their rolling one-year performance has nearly matched or fallen below those of the S&P 500 and S&P 493 more than a few times in the past, when investors lightened their positions and rotated into the S&P 493 — specifically during late 2016, 2018-19, and 2021-23, according to Yardeni.
“While the Magnificent Seven has led the way since mid-2023, the S&P 493 is now beginning to catch up,” he concluded.
“The sustainability of the equity bull market is improving,” says David Donabedian at CIBC Private Wealth US.
“Just look at the fundamentals. Third-quarter earnings are solid. Economic data continues to point towards growth. This week retail sales were above expectation, telling us consumers are still spending. And positive market performance is broadening out.”
Looking into next week’s earnings, Tesla Inc. faces questions on its earnings call next week on production targets and regulatory challenges after the unveiling of its much-hyped Cybercab failed to enthuse investors and quell concerns over its recent vehicle sales.
Boeing Co. will also have to mollify investors increasingly concerned over production delays, labor strife and depleted financial resources.
Reports from United Parcel Service Inc., Norfolk Southern Corp. and Southwest Airlines Co. should reveal the combined impact of Hurricane Helene and the three-day East Coast dockworker strike on the recent quarter.

Corporate Highlights:
* Shares of Lamb Weston Holdings Inc. surged after activist investor Jana Partners said it had built up a 5% stake in the company in a bid to push the french-fry supplier to explore strategic alternatives.
* Procter & Gamble Co. posted a second straight quarter of sluggish sales growth, dragged down by minimal price increases and weakness in key areas such as skin and baby care.
* SLB warned oil explorers’ spending growth has waned in recent months as they take a cautious approach amid lower crude prices.
* Ally Financial Inc. shares fell after the auto lender gave a more pessimistic outlook for loan charge-offs and lowered its net interest margin forecast as consumers struggle with expensive debts.
* Verizon Communications Inc., the biggest wireless carrier in the US, will buy some of US Cellular Corp.’s spectrum licenses for $1 billion as the tower operator sheds parts of its portfolio.
* Warren Buffett sold another slug of Bank of America Corp. stock after the lender repurchased enough of its own shares to nudge his stake back above 10% — a regulatory threshold that requires rapid disclosure.
* CVS Health Corp. named David Joyner as its new chief executive officer, ending a tumultuous tenure for Karen Lynch at the pharmacy giant.
* BMW AG is recalling nearly 700,000 vehicles in China due to coolant pump defects, a fresh setback for the German carmaker that’s reeling from other vehicle faults.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.7%
* The Dow Jones Industrial Average was little changed
* The MSCI World Index rose 0.4%
* S&P 500 Equal Weighted Index rose 0.3%
* Bloomberg Magnificent 7 Total Return Index rose 0.5%
* The Russell 2000 Index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.3% to $1.0864
* The British pound rose 0.2% to $1.3042
* The Japanese yen rose 0.4% to 149.54 per dollar
Cryptocurrencies
* Bitcoin rose 2.5% to $68,591.88
* Ether rose 2% to $2,649.62
Bonds
* The yield on 10-year Treasuries declined one basis point to 4.08%
* Germany’s 10-year yield declined three basis points to 2.18%
* Britain’s 10-year yield declined three basis points to 4.06%
Commodities
* West Texas Intermediate crude fell 1.8% to $69.39 a barrel
* Spot gold rose 1% to $2,719.59 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann
The world turns aside to let any man pass who knows where he is going. -Epictetus, c. 50-135 CE.

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 (Text Only)
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday Eve.  Full moon tonight – it’s going to be the biggest of the year.

Just back from a couple of investment conferences back to back in the US.  Mood is pretty optimistic overall. In my opinion, it can’t be underestimated how adeptly the Biden administration and Federal Reserve Chairman Jay Powell have steered the US economy to recovery after the pandemic, avoiding a recession and posting economic growth that is the envy of the world.  I was astounded to see how  ubiquitous autonomous vehicles are in San Francisco.  I was there not that long ago, and it wasn’t the case, but this time, it seems everywhere that you look, there is a self driving Waymo vehicle buzzing by.  Seems like they’re about to surpass Uber as the preferred ride in the downtown core anyway.

Catch a glimpse of October’s supermoon today
Need a little space? Take a moment to pause and enjoy the closest supermoon of the year. It’s set to peak at its fullest around 7:26 a.m. ET, but the silvery orb will loom large through Friday morning, according to NASA.

October 17, 1777: British General John Burgoyne surrenders at Saratoga, a pivotal American Revolutionary War victory that convinced France to support the American cause.
On Oct. 17, 1931, mobster Al Capone was convicted of income tax evasion and sentenced to 11 years in prison. He was released in 1939.  Go to article >>.
October 17,1989: San Francisco earthquake.

Museum unveils artifacts from century-old time capsule
A World War I Museum in Kansas City excavated a century-old time capsule, revealing a cornucopia of early 20th-century relics, artifacts and documents.

Most complete Tasmanian tiger genome yet pieced together from 110-year-old pickled head
Researchers working with Colossal Biosciences have assembled a near-complete Tasmanian tiger genome and developed artificial reproductive technologies that could help de-extinct the species. Read more.

Orionid meteor shower 2024: When to see ‘shooting stars’ from Halley’s comet next week
The Orionid meteor shower will peak this week as Earth busts through a stream of meteoroids left in the inner solar system by the famous Halley’s comet. Read more.

Malfunctioning mitochondria may drive Crohn’s disease, early study hints
A new study in mice suggests that dysfunctional mitochondria may change the gut microbiome and thus drive Crohn’s disease. Read more.

PHOTOS OF THE DAY

Guazhou, China
A tourist at the huge sleeping baby sculpture Son of the Earth in Gansu province, the Gobi desert.
Photograph: Tingshu Wang/Reuters

Bankgkok, Thailand
Pedestrians use a skywalk bridge between shopping centres as BTS elevated trains pass above them
Photograph: Lillian Suwanrumpha/AFP/Getty Images

The Azorean government allowed this project under authorisation 02/orac/24/judithvandegriendt. Precautions are taken by professionals in order to avoid disturbing the animals. According to regional legislation, swimming with whales and other cetaceans that are not dolphins is forbidden
Photographs by Jeroen Hoekendijk
Market Closes for October 17^th, 2024

Market Index	Close	Change
Dow Jones	43239.05	+161.35
		+0.37%
S&P 500	5841.47	-1.00
		-0.02%
NASDAQ	18373.61	+6.53
		+0.04%
TSX	24690.48	+129.28
		+0.53%

International Markets

Market Index	Close	Change
NIKKEI	38911.19	-269.11
		-0.69%
HANG SENG	20079.10	-207.75
		-1.02%
SENSEX	81006.61	-494.75
		-0.61%
FTSE 100*	8385.13	+56.06
		+0.67%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.159	3.098
CND. 30 Year Bond	3.313	3.242
U.S. 10 Year Bond	4.0906	4.0122
U.S. 30 Year Bond	4.3895	4.2955

Currencies

BOC Close	Today	Previous
Canadian $	0.7249	0.7255
US $	1.3796	1.3783

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4943	0.6692
US $	1.0831	0.9232

Commodities

Gold	Close	Previous
London Gold Fix	2675.25	2649.05
Oil
WTI Crude Future	70.39	70.58

Market Commentary:
📈 On this day in 1919, Radio Corp. of America was formed by combining radio assets and patents of companies including General Electric and Westinghouse.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.5%, or 129.28 to 24,690.48 in Toronto.
Royal Bank of Canada contributed the most to the index gain, increasing 0.7%. K92 Mining Inc. had the largest increase, rising 6.7%.
Today, 154 of 223 shares rose, while 69 fell; 8 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index rose 18%, heading for the best year since 2021
* So far this week, the index rose 0.9%
* The index advanced 25% in the past 52 weeks. The MSCI AC Americas Index gained 33% in the same period
* The S&P/TSX Composite is at its 52-week high and 32.1% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.9% in the past 5 days and rose 4.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.7 on a trailing basis and 17.1 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$3.89t
* 30-day price volatility fell to 8.12% compared with 8.19% in the previous session and the average of 9.64% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 47.6716| 0.6| 24/3
Energy | 42.0684| 1.0| 33/8
Materials | 22.4171| 0.7| 34/18
Information Technology | 7.4630| 0.4| 6/4
Communication Services | 5.3881| 0.7| 4/1
Utilities | 5.2586| 0.5| 10/5
Consumer Discretionary | 2.0690| 0.3| 8/3
Health Care | 0.0977| 0.1| 3/1
Real Estate | -0.0243| 0.0| 9/11
Industrials | -0.8860| 0.0| 18/9
Consumer Staples | -2.2363| -0.2| 5/6
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
RBC | 11.7700| 0.7| 112.4| 30.3
Canadian Natural
Resources | 11.4500| 1.6| -56.6| 13.5
Brookfield Corp | 11.3700| 1.5| -28.7| 43.7
Restaurant Brands | -2.4350| -1.1| 34.6| -5.3
Canadian Pacific Kansas | -4.3680| -0.6| 4.0| 6.9
Canadian National | -5.3410| -0.9| -13.2| -5.2
US
By Rita Nazareth
(Bloomberg) — The world’s biggest bond market got hit as a solid retail sales report had traders trimming their bets on Federal Reserve rate cuts this year.
Treasury yields climbed as the economic figures fanned doubts over how quickly the central bank will ease policy.
Swap contracts priced in a total of 42 basis points of rate reductions over the November and December meetings.
An advance in equities fizzled out after the S&P 500 hit fresh all-time highs.
In late trading, Netflix Inc. rallied as subscriber additions beat estimates.
US retail sales strengthened in September by more than forecast in a broad advance, illustrating resilient consumer spending that continues to power the economy.
The data followed a blowout jobs report and a hotter-than-estimated consumer inflation print released earlier this month that only reinforced the view the economy is nowhere near a recession.
“There’s a narrow path toward a Fed pause in November, but it would likely require every notable economic report between now and then indicating a stronger-than-assumed US economy,” said Matthew Weller at Forex.com and City Index.
“Regardless of what the Fed does in November though, the projected path for interest rates looking out into 2025 and beyond is higher than it’s been in weeks.”
The S&P 500 and the Nasdaq 100 were little changed.
The Dow Jones Industrial Average added 0.4%.
Nvidia Corp. gained after a bullish outlook from Taiwan Semiconductor Manufacturing Co.
Travelers Cos. surged 9% on profit that tripled to $1.3 billion from a year earlier.
Elevance Health Inc. tumbled 11% as the insurer cut its annual outlook.
Treasury 10-year yields advanced seven basis points to 4.09%.
The euro fell as traders added to bets the European Central Bank will need a bumper rate cut in December.
The yen slid to touch the key psychological level of 150 per dollar, bringing the risk of intervention by Japan back into focus.
“This morning’s data highlight undeniable strength across the economy,” said Ellen Zentner at Morgan Stanley Wealth Management.
“Strong data will encourage some pushback from Fed participants to cutting again in November, but Chair Jerome Powell is unlikely to be swayed from forging ahead with steady, quarter-point moves.”
Jeff Roach at LPL Research says strong consumer spending in September suggests economic growth in the previous quarter was solidly above trend.
Looking ahead, investors need to monitor any signs that the unemployed are finding it more difficult to earn a paycheck.
“Retail sales came in well above expectations and continue to defy the weak economy thesis,” said Quincy Krosby at LPL Financial. “The implications for monetary policy center on whether the Fed worries that the renewed strength in the economy fuels an uptick in inflation, although expectations remain that there will be a 25 basis-point cut at the next meeting.”
A string of stronger-than-estimated data points sent the US version of Citigroup’s Economic Surprise Index to the highest since April.
The gauge measures the difference between actual releases and analyst expectations.
To Bret Kenwell at eToro, if the data continues to come in strong, it could force investors to lower their expectations of Fed rate cuts going forward.
“While rate cuts do matter for the market, they’re not the only thing that matters. Consider how well the market has done this year despite wild fluctuations in interest rate expectations, as earnings and the economy have powered stocks higher,” he noted.
“So long as these pillars remain in place, it should bode well for equities.”
While US stocks are hovering near a record, at least one group of investors — systematic funds — is reducing its equity exposure amid rising price swings. But if history is any guide, the trend will reverse after the election.
The CBOE Volatility Index, or the VIX, is trading near 20, up from its average reading of 15 this year through September.
That’s created selling pressure for rules-based systematic funds that typically take cues from the market direction.
Historically, price swings tend to rise leading up to the US Presidential Election as political uncertainty gets on traders’ nerves, before subsiding shortly after, says Tanvir Sandhu, Bloomberg Intelligence’s chief global derivatives strategist.

Corporate Highlights:
* Allstate Corp. posted $630 million in catastrophe losses in September related to Hurricane Helene.
* Amazon.com Inc.’s Amazon Web Services said that new systems running Nvidia Corp.’s Blackwell chips probably won’t be online until early next year.
* Boeing Co. filed to sell as much as $25 billion of equity and bonds this week, but the plane maker is still awaiting what is typically immediate clearance from regulators.
* CSX Corp. received a subpoena from the US Securities and Exchange Commission focused on previously disclosed accounting errors and certain non-financial performance metrics.
* The US Federal Trade Commission is investigating tractor giant Deere & Co. over whether its agricultural equipment repair practices violate antitrust or consumer protection laws.
* Expedia Group Inc. rallied after the Financial Times reported that Uber Technologies Inc. explored a possible bid for the online travel-booking company.
* Blackstone Inc. posted an increase in profit as its credit arm was boosted by an influx of investor cash and became the firm’s biggest business by assets.

Key events this week:
* China GDP, Friday
* US housing starts, Friday
* Fed’s Christopher Waller, Neel Kashkari speak, 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 was little changed
* The Dow Jones Industrial Average rose 0.4%
* The MSCI World Index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.3% to $1.0828
* The British pound rose 0.2% to $1.3013
* The Japanese yen fell 0.4% to 150.21 per dollar
Cryptocurrencies
* Bitcoin fell 1.2% to $66,821.87
* Ether fell 0.9% to $2,595.23
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 4.09%
* Germany’s 10-year yield advanced two basis points to 2.21%
* Britain’s 10-year yield advanced two basis points to 4.09%
Commodities
* West Texas Intermediate crude rose 0.5% to $70.76 a barrel
* Spot gold rose 0.7% to $2,692.07 an ounce

This story was produced with the assistance of Bloomberg Automation.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
It is the duty of every human being to look carefully within and see himself as he is, and spare no pains to improve himself in body, mind and soul. –Gandhi, 1869-1948.

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 (Text Only)
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 16, 1847: Charlotte Brontë’s book “Jane Eyre” published
October 16, 1987: Dow Jones Industrial Average falls more than 100 points for the 1st time (108.35)
October 16, 2016: Ed Whitlock (85) becomes oldest person to complete a marathon under 4 hours, at Toronto Waterfront Marathon in 3 hours 56 minutes

Gaia space telescope discovers 55 ‘runaway’ careening away from stellar cluster at 80 times the speed of sound
Using the Gaia space telescope, astronomers have observed 55 massive stars ejected from their home star cluster in the Large Magellanic Cloud at speeds equivalent to 80 times the speed of sound.

Are we wrong about the age of the universe? The James Webb telescope is raising big questions.
Some of the earliest galaxies found with JWST are also the brightest. That’s a problem for our ideas about the universe.

Drug inspired by spider venom aims to reverse heart attack damage
A clinical trial will test whether a lab-made version of a molecule found in spider venom can reverse tissue damage after a heart attack.

Scientists finally confirm that solar maximum is well underway — and the worst could still be to come
A surprise announcement from scientists involved in monitoring the solar cycle has finally confirmed that the sun’s most active and dangerous phase — solar maximum — is already well underway, and could continue for at least a year.

2,000-year-old tomb holding 12 skeletons found at Petra where ‘Indiana Jones and the Last Crusade’ was filmed
Archaeologists have discovered a 2,000-year-old tomb containing the remains of 12 individuals at Petra in Jordan.

PHOTOS OF THE DAY

Chantilly, France
The French president, Emmanuel Macron, his wifem Brigitte Macron, and Belgium’s King Philippe and Queen Mathilde on a visit to the Château de Chantilly, where they saw an exhibition about Louise of Orléans, the French princess who became the first queen of Belgium
Photograph: Yoan Valat/Reuters

Dubai
Morning view of the skyline including the Burj Khalifa
Photograph: Fadel Senna/AFP/Getty Images

​​​​​​​Sperm whales can be very active at the surface. This adult was lobbing its tail up and down – and defecating in the water. ‘It shows the sheer force of the animal,’ says Hoekendijk. ‘Sperm whales are highly manoeuvrable and can even swim backwards – they wriggle like a snake’
Photograph: Jeroen Hoekendijk
Market Closes for October 16^th, 2024

Market Index	Close	Change
Dow Jones	43077.70	+337.28
		+0.79%
S&P 500	5842.47	+27.21
		+0.47%
NASDAQ	18367.08	+51.49
		+0.28%
TSX	24561.20	+122.12
		+0.50%

International Markets

Market Index	Close	Change
NIKKEI	39180.30	-730.25
		-1.83%
HANG SENG	20286.85	-31.94
		-0.16%
SENSEX	81501.36	-318.76
		-0.39%
FTSE 100*	8329.07	+79.79
		+0.97%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.098	3.145
CND. 30 Year Bond	3.242	3.293
U.S. 10 Year Bond	4.0122	4.0317
U.S. 30 Year Bond	4.2955	4.3200

Currencies

BOC Close	Today	Previous
Canadian $	0.7255	0.7255
US $	1.3783	1.3783

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4939	0.6694
US $	1.0859	0.9209

Commodities

Gold	Close	Previous
London Gold Fix	2649.05	2654.90
Oil
WTI Crude Future	70.58	73.83

Market Commentary:
📈 On this day in 1973, OPEC’s Gulf members said they would immediately lift crude oil prices to $5.12 a barrel, “to exercise their sovereign right to determine the price of their natural resources.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.5% at 24,561.20 in Toronto.
The move follows the previous session’s decrease of 0.1%.
Today, financials stocks led the market higher, as 10 of 11 sectors gained; 128 of 223 shares rose, while 94 fell.
Royal Bank of Canada contributed the most to the index gain, increasing 1.1%.
Energy Fuels Inc/Canada had the largest increase, rising 14.9%.
Insights
* This year, the index rose 17%, heading for the best year since 2021
* The index advanced 25% in the past 52 weeks. The MSCI AC Americas Index gained 33% in the same period
* The S&P/TSX Composite is at its 52-week high and 31.4% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 2% in the past 5 days and rose 3.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.6 on a trailing basis and 17 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$3.87t
* 30-day price volatility rose to 8.19% compared with 8.17% in the previous session and the average of 9.80% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 58.0151| 0.7| 17/10
Energy | 29.5756| 0.7| 19/22
Utilities | 20.6669| 2.2| 15/0
Materials | 9.2051| 0.3| 24/27
Consumer Staples | 7.6197| 0.8| 8/3
Industrials | 1.8170| 0.1| 14/13
Real Estate | 1.7742| 0.3| 15/5
Consumer Discretionary | 1.3060| 0.2| 6/5
Health Care | 0.7573| 1.0| 3/1
Communication Services | 0.4267| 0.1| 3/2
Information Technology | -9.0328| -0.4| 4/6
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
RBC | 18.1900| 1.1| 7.9| 29.4
Cameco | 16.3600| 7.6| 59.7| 34.2
Brookfield Corp | 15.0900| 2.0| -19.5| 41.6
Shopify | -3.8910| -0.4| -35.2| 9.1
Canadian Natural Resources | -4.0140| -0.6| -59.8| 11.7
Barrick Gold | -5.7560| -1.7| 22.4| 14.5
US
By Rita Nazareth
(Bloomberg) — Stock traders kept driving a rotation out of the megacaps that have powered the bull market into other corners of Wall Street.
Economically sensitive shares outperformed, with the Russell 2000 of smaller firms hitting the highest in almost three years.
Most big techs fell, though Nvidia Corp. jumped 3.1%.
An equal-weighted version of the S&P 500 — where the likes of Apple Inc. carry the same heft as Dollar Tree Inc. — beat the US benchmark.
That gauge is less impacted by the largest companies — providing a glimpse of hope the rally will broaden out.
“Investors may be looking to rotate away from large technology companies, which are widely owned and may have fewer clear catalysts going forward,” said David Russell at TradeStation.
“With the election coming and the economy returning to balance, the long-awaited rotation away from megacaps to everything else could finally be at hand.”
Traders also continued to wade through a raft of corporate earnings.
Morgan Stanley climbed 6.5% as traders and bankers joined the rest of their Wall Street rivals in posting better- than-expected revenue, fueling a 32% profit jump for the third quarter.
United Airlines Holdings Inc. jumped 12% as earnings beat estimates.
Billionaire Stan Druckenmiller said markets are pricing in a Donald Trump victory ahead of next month’s presidential election.
In a Bloomberg Television interview, he said “you can see it in the bank stocks, you can see it in crypto.”
The S&P 500 rose 0.5% to around 5,840.
The Nasdaq 100 was little changed.
The Dow Jones Industrial Average climbed 0.8%.
The Russell 2000 rallied 1.6%.
The Bloomberg “Magnificent Seven” gauge was little changed.
Treasury 10-year yields declined two basis points to 4.01%.
Bitcoin rose 1.9% to $67,728.77.
“We recently upgraded small caps to neutral vs large caps after a persistent 3 1/2 year period of underperformance,” according to Nicholas Lentini at Morgan Stanley and his colleagues. “This decision came on the back of the strong September jobs report and the Fed’s decision to deliver a 50 basis-point rate cut at last month’s meeting.”
For them to get outright bullish on small caps, leading macro indicators would likely need to reflect a clear acceleration in growth.
To Adam Turnquist at LPL Financial, small caps have been stuck in a consolidation range over the last few months as investors questioned the likelihood of a soft-landing scenario and path of monetary policy.
“With the growth outlook recently improving — underpinned by better-than-feared labor market conditions — and increased visibility into Fed rate cuts, the Russell 2000 has rallied off the lower end of its rising price channel,” he noted. “Recent strength in the banking space has further supported small caps.”
The S&P 500 has already set 46 closing records this year, and according to the trading desk at Goldman Sachs Group Inc., that rally is primed to extend into the final months of 2024.
Scott Rubner, a managing director for global markets and tactical specialist at the bank, estimates the US stock benchmark can finish the year “well north of 6,000.”
According to his calculations of data going back to 1928, the historical median of S&P 500 returns from Oct. 15 to Dec. 31 is 5.17%.
In election years median returns are even higher, just over 7%, implying a year-end level of 6,270.
“The equity market selloff is canceled, and a year-end rally is starting to resonate with clients shifting from hedging from the left-tail to the right-tail as institutional investors are getting forced into the market right now,” Rubner wrote in a note to clients Tuesday. Professional investors are growing concerned about materially underperforming their benchmarks, he added.

Corporate Highlights:
* Boeing Co. is considering raising about $15 billion in a sale of shares and a mandatory convertible bond, Reuters reported, citing people familiar with the matter.
* J.B. Hunt Transport Services Inc.’s third-quarter profit topped the average analyst estimate. Revenue fell less than analysts expected.
* ASML Holding NV Chief Executive Officer Christophe Fouquet said he expects the chip market’s long-awaited recovery will extend “well into 2025,” following disappointing third-quarter earnings that sparked a broad selloff across the semiconductor industry.
* Qualcomm Inc. is likely to wait until after the US presidential election in November before deciding whether to pursue an offer to buy Intel Corp., people familiar with the matter said.
* U.S. Bancorp raked in net interest income that topped analyst estimates as fixed-rate assets in its portfolio benefited from higher borrowing costs.
* Novavax Inc. tumbled after US regulators placed a hold on the company’s experimental influenza and Covid-19 combination vaccines because a study volunteer developed a serious nerve disorder.
* Abbott Laboratories narrowed its full-year profit outlook, raising the midpoint slightly, as strong demand for its diabetes devices continued driving growth.
* Airbus SE plans to eliminate as many as 2,500 positions at its defense and space division as the European aircraft manufacturer seeks to streamline a business that’s consistently racked up charges and suffered from stiff competition.
* Warburg Pincus is weighing a possible buyout of German IT services company Nagarro SE, people familiar with the matter said, potentially adding to the strong momentum of dealmaking in the country.

Key events this week:
* ECB rate decision, Thursday
* US retail sales, jobless claims, industrial production, Thursday
* Fed’s Austan Goolsbee speaks, Thursday
* China GDP, Friday
* US housing starts, Friday
* Fed’s Christopher Waller, Neel Kashkari speak, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.5% as of 4 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average rose 0.8%
* The MSCI World Index rose 0.2%
* S&P 500 Equal Weighted Index rose 0.7%
* The Russell 2000 Index rose 1.6%
* Bloomberg Magnificent 7 Total Return Index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.3% to $1.0858
* The British pound fell 0.7% to $1.2982
* The Japanese yen fell 0.3% to 149.69 per dollar
Cryptocurrencies
* Bitcoin rose 1.9% to $67,728.77
* Ether rose 1.7% to $2,615.18
Bonds
* The yield on 10-year Treasuries declined two basis points to 4.01%
* Germany’s 10-year yield declined four basis points to 2.18%
* Britain’s 10-year yield declined 10 basis points to 4.06%
Commodities
* West Texas Intermediate crude was little changed
* Spot gold rose 0.5% to $2,674.72 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening everyone.

Be magnificent!

Shab
” Do not seek to follow in the footsteps of the wise; seek what they sought.”– Matsuo Chuemon Munefusa

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828

Dear Friends,

Tangents:
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 15, 1581: Commissioned by Catherine de’ Medici, the first ballet “Ballet Comique de la Reine” is staged in Paris
October 15, 1789: 1st US presidential tour by George Washington in New England
October 15, 1924: US President Calvin Coolidge declares Statue of Liberty a national monument

The biggest supermoon of the year is about to rise: When to see the ‘Hunter’s Moon’ at its best and brightest
The Hunter’s Moon will be the first full moon of autumn when it rises on Oct. 17. It will also be the third and closest supermoon of the year.

Phaistos Disk: 3,000-year-old inscriptions from Crete that have never been deciphered
None of the many interpretations of the Phaistos Disk’s inscriptions are universally accepted.

5,000-year-old cemetery in Spain has twice as many females as males, and nobody knows why
There are more than twice as many females as males buried in an ancient cemetery in Spain, a new study finds — but no one knows why.

Record-breaking ancient spinning galaxy challenges cosmic evolution theories
Astronomers have discovered the earliest strongly rotating galaxy ever seen that’s well-organized rather than chaotic, challenging theories of cosmic evolution.

PHOTOS OF THE DAY

Ohrid, North Macedonia
A satellite leaves a trail of light near the tail of the comet, known as the comet of the century, after sunset
Photograph: Ognen Teofilovski/Reuters

Vienna, Austria
Photographers prepare to capture Comet C/2023 A3 (Tsuchinshan–Atlas) in the night sky
Photograph: Georg Hochmuth/APA/AFP/Getty Images

​​​​​​​‘A pod of Atlantic spotted dolphins rushed in on our first day out, and bow-rode in front of the boat. It was a sign of how lucky we were going to be,’ says Hoekendijk. The species, with their paint-spattered appearance, prefer these subtropical waters, warmed by the Gulf Stream
Photograph: Jeroen Hoekendijk
Market Closes for October 15^th, 2024

Market Index	Close	Change
Dow Jones	42740.42	-324.80
		-0.75%
S&P 500	5815.26	-44.59
		-0.76%
NASDAQ	18315.59	-187.10
		-1.01%
TSX	24439.08	-32.09
		-0.13%

International Markets

Market Index	Close	Change
NIKKEI	39910.55	+304.75
		+0.77%
HANG SENG	20318.79	-774.08
		-3.67%
SENSEX	81820.12	-152.93
		-0.19%
FTSE 100*	8249.28	-43.38
		-0.52%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.145	N.A
CND. 30 Year Bond	3.293	N.A
U.S. 10 Year Bond	4.0317	4.1003
U.S. 30 Year Bond	4.3200	4.4106

Currencies

BOC Close	Today	Previous
Canadian $	0.7255	0.7267
US $	1.3783	1.3761

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.5008	0.6663
US $	1.0889	0.9184

Commodities

Gold	Close	Previous
London Gold Fix	2654.90	2648.80
Oil
WTI Crude Future	73.83	75.85

Market Commentary:
📈 On this day in 1878, Thomas Edison founded the Edison Electric Light Co. to research and develop the incandescent light bulb. It issued 3,000 shares of stock at $100 apiece. In 1889 the company, funded largely by J.P. Morgan, was renamed Edison General Electric.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.1% at 24,439.08 in Toronto.
The move was the biggest since falling 0.2% on Oct.7 and follows the previous session’s increase of 0.7%.
Canadian Natural Resources Ltd. contributed the most to the index decline, decreasing 5.7%.
Baytex Energy Corp. had the largest drop, falling 6.3%.
Today, 87 of 223 shares fell, while 136 rose; 3 of 11 sectors were lower, led by energy stocks.
Insights
* This year, the index rose 17%, heading for the best year since 2021
* The index advanced 26% in the past 52 weeks. The MSCI AC Americas Index gained 34% in the same period
* The S&P/TSX Composite is 0.3% below its 52-week high on Oct. 11, 2024 and 30.7% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.4% in the past 5 days and rose 3.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.5 on a trailing basis and 16.9 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$3.88t
* 30-day price volatility fell to 8.17% compared with 9.30% in the previous session and the average of 9.88% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -90.7806| -2.1| 9/32
Information Technology | -14.7887| -0.7| 4/6
Consumer Discretionary | -1.0875| -0.1| 4/7
Health Care | 1.9693| 2.7| 3/1
Industrials | 3.8879| 0.1| 17/10
Communication Services | 4.6335| 0.6| 4/1
Consumer Staples | 4.6815| 0.5| 7/4
Real Estate | 7.3234| 1.4| 20/0
Materials | 9.2520| 0.3| 36/16
Utilities | 17.1975| 1.9| 12/3
Financials | 25.6186| 0.3| 20/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian Natural Resources | -44.0100| -5.7| 16.0| 12.3
Suncor | -25.2100| -5.1| -15.1| 24.3
Shopify | -13.6200| -1.4| -28.8| 9.5
RBC | 11.3700| 0.7| 126.0| 28.0
TC Energy | 12.5400| 2.8| -44.9| 36.9
Agnico Eagle Mines Ltd | 13.6100| 3.6| -9.2| 55.8
US
By Rita Nazareth
(Bloomberg) — Stocks got hit as a disappointing outlook from Europe’s most-valuable tech company and concern about tighter US restrictions on chip sales spurred a selloff in the industry that has powered the bull market.
Equities dropped from all-time highs, with the S&P 500 down lmost 1%. The Nasdaq 100 slipped 1.4%.
A closely watched gauge of semiconductor firms saw its worst plunge since early September.
US-traded shares of ASML Holding NV plummeted 16% after the Dutch giant cut its guidance for 2025.
Nvidia Corp. sank 4.5% on news US officials have discussed capping sales of advanced AI chips from the company and other American firms to some countries.
Allocations to equities surged, while bond exposure sank and cash levels in global portfolios fell to 3.9% in October from 4.2% last month, triggering a “sell signal”, strategists led by Michael Hartnett wrote.
“US equity markets, skewed more toward large-cap leadership, are seeing profit-taking today as earnings season ramps up against overbought/extended charts,” said Dan Wantrobski at Janney Montgomery Scott.
The S&P 500 slipped to around 5,815.
The Dow Jones Industrial Average slid 0.8%.
UnitedHealth Group Inc. sank 8.1% on a disappointing outlook.
Bank of America Corp. rose as earnings beat estimates.
Goldman Sachs Group Inc. was little changed and Citigroup Inc. sank despite solid results.
Treasury 10-year yields declined seven basis points to 4.03%.
The dollar rose.
Oil plunged as a report that Israel may avoid targeting Iran’s crude infrastructure eased concerns about a potential supply disruption.
Weekly flows for the S&P 500 were near the largest observed this year, according to Citigroup strategists led by Chris Montagu.
Positioning is very extended and sits at 98^th percentile.
“We worry that valuations are getting stretched, as stocks are near ‘priced to perfection’,” said Lamar Villere, portfolio manager at Villere & Co.
With the S&P 500 holding over 5,800, UBS Group AG’s Jonathan Golub and Patrick Palfrey were the latest to raise their year-end call for the gauge.
They boosted it to 5,850 from 5,600 — while lifting their 2025 forecast to 6,400 from 6,000.
“Fiscal and monetary policy uncertainty, and potential election outcomes, make 2025 returns far from certain,” Golub wrote.
That didn’t prevent him from betting that the stock market can keep powering on, noting that risks are skewed to the upside, with moderating inflation, rate cuts, improvement in low-end consumer and business activity and broad-based profit strength.
To Scott Rubner at Goldman Sachs, US stocks are set to extend their rally into the final months of the year, pushing the S&P 500 past 6,000, as corporate buyers re-enter the market and institutional investors drop their hedges.

Corporate Highlights:
* Johnson & Johnson reported stronger-than-expected third- quarter earnings, driven by surging sales of the cancer medicine Darzalex.
* Charles Schwab Corp. reported earnings per share that topped analyst estimates and curbing some of its expensive debt — a sign the firm has moved past a bout of turbulence last year.
* PNC Financial Services Group Inc. pulled in more net interest income than analysts expected in the third quarter, another period of sequential growth for the bank’s biggest source of revenue as the firm continues to predict a record haul next year.
* Walgreens Boots Alliance Inc. plans to close 14% of its US stores to cut costs as consumers pull back spending.
* PG&E Corp. said it may need to cut power to homes and businesses across a large portion of California starting later this week when dry, gusty winds are expected to sweep across the state.
* LVMH’s sales of fashion and leather goods fell for the first time since the pandemic as the industry’s biggest player was hammered by a slump in demand from Chinese consumers whose appetite for high-end purchases once seemed insatiable.
* Adidas AG raised its annual profit target for the third quarter in a row amid the sustained boom for retro sneakers like the Samba and more sales from its shrinking stockpile of Yeezy footwear.

Key events this week:
* Morgan Stanley earnings, Wednesday
* ECB rate decision, Thursday
* US retail sales, jobless claims, industrial production, Thursday
* Fed’s Austan Goolsbee speaks, Thursday
* China GDP, Friday
* US housing starts, Friday
* Fed’s Christopher Waller, Neel Kashkari speak, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.4%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World Index fell 0.7%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.0887
* The British pound was little changed at $1.3069
* The Japanese yen rose 0.4% to 149.21 per dollar
Cryptocurrencies
* Bitcoin rose 1.6% to $66,979.55
* Ether fell 1.1% to $2,591.82
Bonds
* The yield on 10-year Treasuries declined seven basis points to 4.03%
* Germany’s 10-year yield declined five basis points to 2.22%
* Britain’s 10-year yield declined eight basis points to 4.16%
Commodities
* West Texas Intermediate crude fell 3.9% to $70.92 a barrel
* Spot gold rose 0.5% to $2,662.01 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening everyone.

Be magnificent!

Shab
” If a little dreaming is dangerous, the cure for it is not to dream less, but to dream more, to dream all the time.” — Marcel Proust

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828

Dear Friends,

Tangents: Happy Friday! Wishing you a Happy Canadian Thanksgiving as well!
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 11, 1726: Benjamin Franklin returns to Philadelphia from England
October 11, 1852: Australia’s oldest university, the University of Sydney, is inaugurated in Sydney
October 11, 2001: Nobel Prize for Economic Sciences jointly awarded to George Akerlof, Joseph E. Stiglitz and A. Michael Spence for “their analyses of markets with asymmetric information”

‘Future You’ AI lets you speak to a 60-year-old version of yourself — and it has surprising wellbeing benefits
An MIT-led project asked young users to talk to an AI-powered simulation of their 60-year-old selves through a chatbot interface. The experience led to decreased anxiety and a boost in optimism.

New DNA findings shed light on Tsavo’s infamous man-eating lions
Scientists extract DNA from hair embedded in the Tsavo lions’ jaws that reveals the species of prey they ate while they were alive. Read more.

British explorer Sandy Irvine’s foot discovered 100 years after he vanished on Everest
The foot, boot and sock thought to belong to Sandy Irvine, who disappeared during George Mallory’s 1924 expedition to climb Mount Everest, have likely been found. They could be a vital clue in unraveling an even bigger mystery. Read more.

Thanksgiving (Canada)

PHOTOS OF THE DAY

Fife, UK
The northern lights, also known as aurora borealis, illuminate the sky over the ‘kissing trees’ near Kinghorn in Scotland
Photograph: Jane Barlow/PA

Kent, UK
The gardener Janice Ackerley trims the topiary hedge of the yew chess set that was planted at Hever Castle in Edenbridge nearly 120 years ago
Photograph: Gareth Fuller/PA

Frankfurt, Germany
Geese are reflected in a puddle as they walk past the skyline of the financial district
Photograph: Michael Probst/AP
Market Closes for October 11^th, 2024

Market Index	Close	Change
Dow Jones	42863.86	+409.74
		+0.97%
S&P 500	5815.03	+34.98
		+0.61%
NASDAQ	18342.94	+60.89
		+0.33%
TSX	24471.17	+168.91
		+0.69%

International Markets

Market Index	Close	Change
NIKKEI	39605.80	+224.91
		+0.57%
HANG SENG	21251.98	+614.74
		+2.98%
SENSEX	81381.36	-230.05
		-0.28%
FTSE 100*	8253.65	+15.92
		+0.19%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.220	3.226
CND. 30 Year Bond	3.357	3.357
U.S. 10 Year Bond	4.1003	4.0608
U.S. 30 Year Bond	4.4106	4.3588

Currencies

BOC Close	Today	Previous
Canadian $	0.7267	0.7274
US $	1.3761	1.3747

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.5059	0.6641
US $	1.0943	0.9138

Commodities

Gold	Close	Previous
London Gold Fix	2648.80	2628.95
Oil
WTI Crude Future	75.85	75.85

Market Commentary:
📈 On this day in 1817, the New York Stock Exchange formally banned negotiated fees, compelling all its members to charge fixed commission rates to the investing public, including members of the brokers’ own families.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.7%, or 168.91 to 24,471.17 in Toronto.
Royal Bank of Canada contributed the most to the index gain, increasing 2.0%.
Brookfield Business Partners LP had the largest increase, rising 4.0%.
Today, 170 of 223 shares rose, while 47 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index rose 17%, heading for the best year since 2021
* So far this week, the index rose 1.3%
* The index advanced 24% in the past 52 weeks. The MSCI AC Americas Index gained 32% in the same period
* The S&P/TSX Composite is at its 52-week high and 30.9% above its low on Oct. 27, 2023
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.5 on a trailing basis and 17 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$3.85t
* 30-day price volatility rose to 9.30% compared with 9.22% in the previous session and the average of 10.53% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 60.6438| 0.8| 23/3
Industrials | 35.1112| 1.1| 23/3
Energy | 24.8198| 0.6| 33/6
Information Technology | 23.3453| 1.1| 8/2
Materials | 12.7462| 0.4| 34/18
Consumer Discretionary | 11.0308| 1.4| 9/2
Utilities | 4.7699| 0.5| 10/5
Real Estate | 3.6656| 0.7| 14/4
Communication Services | 3.5195| 0.5| 4/1
Health Care | -0.1672| -0.2| 2/2
Consumer Staples | -10.5801| -1.1| 10/1
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | 33.1200| 2.0| 25.1| 27.1
CIBC | 12.7800| 2.4| 52.7| 31.5
Bank of Montreal | 11.2100| 1.8| 67.2| -2.7
Aritzia | -1.6280| -5.6| 320.8| 71.6
Couche-Tard | -13.8700| -3.4| 16.9| -7.4
TD Bank | -40.0300| -4.0| 107.4| -8.3
US
By Rita Nazareth
(Bloomberg) — Wall Street kicked off the earnings season with stocks hitting all-time highs as big banks rallied after posting solid results.
The S&P 500 topped 5,800, notching its 45th record in 2024.
Equity traders worried that the start of Federal Reserve rate cuts would sap bank profits saw things weren’t that bad, with JPMorgan Chase & Co. churning out a surprise increase in net interest income.
At Wells Fargo & Co., NII slumped — but the firm expects that drop to be less steep in the last quarter.
Each stock rose at least 4.4%, pushing the KBW Bank Index to the highest since April 2022.
“We expect earnings season to be solid, including the big banks,” said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management. “Credit card delinquencies are still very low and increased economic activity should drive bank revenues.”
The S&P 500 rose 0.6%, extending gains into a fifth straight week — its longest winning run since May.
The Nasdaq 100 added 0.1%.
The Dow Jones Industrial Average gained 1%.
The Russell 2000 climbed 2.1%.
Tesla Inc. dropped 8.8% after the unveiling of its Robotaxi was light on specifics.
Uber Technologies Inc. and Lyft Inc. jumped over 9.5%.
Treasuries saw small moves, with shorter maturities outperforming.
A Bloomberg gauge of US bonds posted a fourth straight week of declines.
The dollar barely budged, while capping a second consecutive week of gains in anticipation of a slower pace of rate cuts.
West Texas Intermediate oil settled below $76 a barrel.
“Now that the Fed has started its rate-cutting cycle, the economy should get a further boost from lower interest rates on things like credit card debt and business loans,” said David Lefkowitz at UBS Global Wealth Management. “As a result, we expect third-quarter earnings results will be consistent with recent, healthy trends.”
In non-recessionary scenarios, the S&P 500 rises 17% on average in the 12 months after the Fed starts to cut rates, Lefkowitz noted.
He reiterated his S&P 500 price targets of 5,900 and 6,200 for December 2024 and June 2025.
Apollo’s Torsten Slok noted that financials have been among top outperformers during the Fed’s rate cutting cycles that end with a “soft landing.”
Slok looked at total returns of each sector during the two rate cut cycles that didn’t overlap with a recession, from July 1995 to January 1996 and from September 1998 to November 1998.
In the run-up to the third-quarter earnings season, an unusually large dichotomy took shape, according to Gina Martin Adams, Michael Casper and Wendy Soong at Bloomberg Intelligence.
Analysts kept lowering the bar for S&P 500 companies while management guidance implied a significantly stronger outlook — suggesting that companies should easily beat expectations, they noted.
S&P 500 net income growth is now forecast to rise a mere 4.2% in the third quarter, down from more than 7% growth expected in mid-July, thanks mostly to the energy sector.
Analysts’ souring outlook is not exclusive to energy, however,  as estimates for all sectors except for communication services fell, they said.
Currently, 37% of S&P 500 companies are expected to report lower earnings per share than the previous year this quarter, compared to 26.6% last quarter, BI concluded.

Corporate Highlights:
* BlackRock Inc. pulled in a record $221 billion of total client cash last quarter, pushing the world’s largest money manager to an all-time high of $11.5 trillion of assets as it seeks to become a one-stop shop for stocks, bonds and, increasingly, private assets.
* Bank of New York Mellon Corp.’s third-quarter profit topped expectations after a jump in asset values fueled a 5% increase in fee revenue.
* With the paralyzing labor strike now running for a full four weeks, Boeing Co. is taking a harder line with union representatives by filing unfair labor practice charges, saying the other side has bargained in bad faith and undermined its own deal.
* Humana Inc. released final quality ratings for private Medicare Advantage health plans.
* BP Plc expects its net debt to have risen in the third quarter due to lower refining margins and changes to the timing of asset sales.

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 0.1%
* The Dow Jones Industrial Average rose 1%
* The MSCI World Index rose 0.6%
* The Russell 2000 Index rose 2.1%
* Bloomberg Magnificent 7 Total Return Index fell 1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was unchanged at $1.0934
* The British pound was little changed at $1.3066
* The Japanese yen fell 0.4% to 149.15 per dollar
Cryptocurrencies
* Bitcoin rose 5.5% to $63,022.34
* Ether rose 3.8% to $2,457.29
Bonds
* The yield on 10-year Treasuries advanced three basis points to 4.09%
* Germany’s 10-year yield was little changed at 2.27%
* Britain’s 10-year yield was little changed at 4.21%
Commodities
* West Texas Intermediate crude fell 0.4% to $75.58 a barrel
* Spot gold rose 1% to $2,656.29 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely weekend everyone.

Be magnificent!

Shab
” You will never win if you never begin.”– Helen Rowland

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828

Dear Friends,

Tangents:
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 10, 1845: The United States Naval Academy was founded in Annapolis, Maryland
October 10,1889: Barnard College is founded in New York City after Columbia University refuses to accept women
October 10, 1963: American chemist and anti-nuclear weapons campaigner Linus Pauling wins the Nobel Peace Prize the same day the first nuclear test treaty comes into effect

Watch atoms fuse into world’s ‘smallest bubble’ of water in 1st-of-its-kind ‘nanoscale’ video
A new study captured never-before-seen footage of hydrogen and oxygen atoms combining to form a miniature water droplet out of “thin air.” The newly improved reaction could one day help astronauts make water in space.

‘Severe’ solar storm that hit Earth Thursday could be ‘global phenomenon’ with auroras as far south as California
A powerful solar outburst hit Earth Thursday, triggering a “severe” geomagnetic storm. Auroras could be visible as far south as California and Alabama, NOAA predicts. Read more.

Google’s Sycamore quantum computer chip can now outperform the fastest supercomputers, new study suggests
Experiments on Google’s 67-qubit Sycamore processor showed operations entering a new “weak noise phase” in which calculations were complex enough to outperform supercomputers, based on benchmark testing. Read more.

PHOTOS OF THE DAY

Dublin, Ireland
A male fallow deer in Dublin’s Phoenix park
Photograph: Brian Lawless/PA

Free as a Bird by Alberto Román Gómez (Spain)
The winner of the 10 years and under category contrasts a delicate stonechat bird with a hefty chain. Watching from the window of his father’s car at the edge of the Sierra de Grazalema nature park, Alberto found this young bird tricky to photograph as it was quickly flying back and forth, gathering insects. To Alberto, the stonechat displayed a sense of ownership, as if it were a young guardian overseeing its territory
Photograph: Alberto Román Góme/2024 Wildlife Photographer of the Year

​​​​​​​Old Man of the Glen by Fortunato Gatto (Italy)
The winner of the plants and fungi category focuses on a gnarled old birch tree adorned with pale ‘old man’s beard’ lichens. Gatto often visits the Glen Affric ancient pinewoods alone to lose himself in its intricate, chaotic, timeless beauty. The pale ‘old man’s beard’ lichens indicate that it’s an area of minimal air pollution. Analysis of pollen preserved in the layered sediments shows that the forest has stood here for at least 8,300 years
Photograph: Fortunato Gatto/2024 Wildlife Photographer of the Year
Market Closes for October 10^th, 2024

Market Index	Close	Change
Dow Jones	42454.12	-57.88
		-0.14%
S&P 500	5780.05	-11.99
		-0.21%
NASDAQ	18282.05	-9.57
		-0.05%
TSX	24302.26	+77.36
		+0.32%

International Markets

Market Index	Close	Change
NIKKEI	39380.89	+102.93
		+0.26%
HANG SENG	21251.98	+614.74
		+2.98%
SENSEX	81611.41	+144.31
		+0.18%
FTSE 100*	8237.73	-6.01
		-0.07%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.226	3.258
CND. 30 Year Bond	3.357	3.369
U.S. 10 Year Bond	4.0608	4.0726
U.S. 30 Year Bond	4.3588	4.3408

Currencies

BOC Close	Today	Previous
Canadian $	0.7274	0.7293
US $	1.3747	1.3712

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.5030	0.6653
US $	1.0933	0.9147

Commodities

Gold	Close	Previous
London Gold Fix	2628.95	2639.90
Oil
WTI Crude Future	75.85	73.24

Market Commentary:
📈 On this day in 1962, the Self-Employed Individual Retirement Tax Act of 1962 became federal law, creating the Keogh plan, the first retirement account that an individual could control and determine for themself.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.3%, or 77.36 to 24,302.26 in Toronto.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.7%.
K92 Mining Inc. had the largest increase, rising 16.6%.
Today, 122 of 223 shares rose, while 99 fell; 5 of 11 sectors were higher, led by materials stocks.
Insights
* This year, the index rose 16%, heading for the best year since 2021
* So far this week, the index rose 0.6%
* The index advanced 25% in the past 52 weeks. The MSCI AC Americas Index gained 32% in the same period
* The S&P/TSX Composite is at its 52-week high and 30% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.4% in the past 5 days and rose 5.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.4 on a trailing basis and 16.9 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$3.84t
* 30-day price volatility fell to 9.22% compared with 9.24% in the previous session and the average of 10.76% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 63.5098| 2.1| 44/7
Energy | 51.8787| 1.2| 34/7
Industrials | 11.5766| 0.4| 11/16
Consumer Staples | 3.7414| 0.4| 2/8
Health Care | 0.0168| 0.0| 1/3
Consumer Discretionary | -0.9257| -0.1| 3/8
Utilities | -2.7006| -0.3| 3/12
Communication Services | -3.2847| -0.5| 2/3
Real Estate | -4.9712| -0.9| 0/20
Information Technology | -8.7754| -0.4| 3/7
Financials | -32.7106| -0.4| 19/8
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Canadian Natural Resources | 20.2200| 2.7| -56.4| 18.6
Suncor | 12.6000| 2.6| 6.1| 31.0
Bank of Montreal | 11.2600| 1.8| 86.1| -4.4
CIBC | -4.8760| -0.9| -24.8| 28.4
Shopify | -4.9900| -0.5| -48.0| 10.3
RBC | -6.9210| -0.4| 47.4| 24.6
US
By Rita Nazareth
(Bloomberg) — Stocks fell after data showed hotter-than-expected inflation and a slowdown in the labor market, amplifying the debate on whether the Federal Reserve will opt for a smaller rate cut next month or a pause after a large September reduction.
Following a rally to all-time highs, the S&P 500 took a breather.
While Thursday’s economic figures were not perceived by Wall Street as catastrophic, they certainly highlighted the Fed’s challenge of bringing inflation back to the 2% target without cooling the jobs market too much.
And that has added to the debate about the Fed’s next steps.
For now, bond traders continued to bet the central bank will reduce the pace of cuts to 25 basis points in November.
Three Fed policymakers — John Williams, Austan Goolsbee and Thomas Barkin were unfazed by a higher-than-forecast consumer price index, suggesting officials can continue lowering rates.
The outlier was Raphael Bostic of the Atlanta Fed.
In an interview with the Wall Street Journal he revealed that, in projections released in September, he had called for one additional quarter-point cut this year.
The Fed has two remaining meetings in 2024.
“One slightly hotter-than-expected CPI reading doesn’t mean a new wave of inflation has been unleashed, but the fact that it accompanied a jump in weekly jobless claims may add to short-term market uncertainty,” said Chris Larkin at E*Trade from Morgan Stanley. “These weren’t good numbers — but that doesn’t mean they upended the larger outlook for solid economic growth and moderate inflation.”
In a note titled “The Fed’s quandary as inflation warmer while labor cooler,” Quincy Krosby at LPL Financial says the latest economic numbers were not the combination the Fed wants to see.
“If inflation data continues to indicate that prices are generally rising amid a backdrop of a cooler labor market, the Fed’s next meeting will undoubtedly involve a more heated discussion of which of the Fed’s mandates takes precedence,” she noted.
The S&P 500 fell 0.2%.
Most major groups retreated, though energy shares joined oil higher as the market awaited Israel’s response to Iran’s missile attack.
Megacaps were mixed, with Nvidia Corp. up and Apple Inc. down.
Tesla Inc. edged lower ahead of the launch of the company’s fully self-driving vehicle.
The yield on 10-year Treasuries was little changed at 4.07%.
The Bloomberg Dollar Spot Index wavered.

Wall Street’s Reaction:
* Bret Kenwell at eToro:
Today’s CPI report will lower enthusiasm around rate cuts next month, and if some of these other catalysts increase uncertainty, it could act as a short-term excuse for markets to pull back — particularly with the S&P 500 at all-time highs.
* David Donabedian at CIBC Private Wealth US:
The Fed said the last mile getting toward their inflation target is going to be tough, and that is what we are seeing. But we still expect the Fed to cut rates by a quarter point in November, and likely a similar cut at the December meeting.
* Jim Baird at Plante Moran Financial Advisors:
If anything, the report was good enough to solidify the case for another quarter-point cut. Inflation hasn’t receded so rapidly to justify an accelerated pace of policy easing, but the upside surprise also wasn’t sufficient to raise serious questions about the underlying disinflationary trend.
* Mark Hamrick at Bankrate:
The Federal Reserve isn’t yet in position to declare ‘mission accomplished’ in the battle against inflation, and the ride to the 2% target continues to be bumpy at times. Mindful of its dual mandate prioritizing maximum employment and stable prices, it will be eager to see the next monthly jobs report in early November before the next announcement on rates. A safe bet for now is rate reductions of one-quarter of 1% at the final two meetings of the year.
* Will Compernolle at FHN Financial:
The CPI surprised to the upside in September, rising faster than the consensus expectation in both the headline index and the core. The core increase wasn’t hot enough to rule out a November rate cut, however.
* Skyler Weinand at Regan Capital:
The Fed has shown that they’re willing to let inflation potentially run hotter than normal in favor of full employment.
Only a rise towards 4% inflation or a few hot inflation prints in a row would alter the Fed’s course of continued rate cuts over the next year.
* Chris Zaccarelli at Independent Advisor Alliance:
Given that the most recent jobs report was so strong, it was possible that a big upside surprise to inflation could have caused the Fed to pause at the next meeting and leave rates unchanged. However, given that this month’s report was a little higher than expected it is still likely that the Fed will go ahead and cut by 25 bps next month and – if nothing in the labor market or inflation readings materially changes by the end of the year –another 25 bps in December.
* Richard Flynn at Charles Schwab UK:
The market reacted negatively to recent indications from policymakers that the next cut would be 0.25%, however, history tells us that consecutive dramatic rate cuts tend to come about when the economy is in distress, so while we expect a cut next month, investors may be wise to hope for a gradual drop.

Corporate Highlights:
* Delta Air Lines Inc. forecast profit and sales short of Wall Street’s estimates for the final months of the year, suggesting a slow recovery from a challenging summer travel season.
* Domino’s Pizza Inc. trimmed its 2024 projection for sales growth and new locations as slower consumer spending hits the restaurant industry.
* Pfizer Inc. company officials threatened legal action against two former top executives who had been working with Starboard Value to push for changes at the drugmaker, the activist investor alleged Thursday in a letter to the company’s board.
* GXO Logistics Inc., the supply-chain services provider that spun off from trucking company XPO Inc. in 2021, is exploring a sale, according to people familiar with the matter.
* Eli Lilly & Co. is ramping up its legal campaign against companies that were temporarily allowed to make and sell copycat versions of its blockbuster drugs used for weight loss until a US shortage ended last week.
* Toronto-Dominion Bank will pay almost $3.1 billion in fines and other penalties and face a cap on its US retail banking assets, after pleading guilty to failing to prevent money laundering by drug cartels and other criminals.

Key events this week:
* JPMorgan, Wells Fargo kick off earnings season for the big Wall Street banks, Friday
* US PPI, University of Michigan consumer sentiment, Friday
* Fed’s Lorie Logan, Austan Goolsbee and Michelle Bowman speak, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.1%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World Index fell 0.1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0936
* The British pound was little changed at $1.3058
* The Japanese yen rose 0.5% to 148.55 per dollar
Cryptocurrencies
* Bitcoin fell 1.1% to $59,720.89
* Ether rose 0.5% to $2,365.4
Bonds
* The yield on 10-year Treasuries was little changed at 4.07%
* Germany’s 10-year yield was little changed at 2.26%
* Britain’s 10-year yield advanced three basis points to 4.21%
Commodities
* West Texas Intermediate crude rose 3.6% to $75.91 a barrel
* Spot gold rose 0.8% to $2,629.53 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening everyone.

Be magnificent!

Shab
” There is only one corner of the universe you can be certain of improving, and that’s your own self.”– Aldous Huxley

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828

Dear Friends,

Tangents:
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 9, 1865: First US underground pipeline for carrying oil is laid in Pennsylvania
October 9, 1870: Rome is incorporated into Italy by royal decree
October 9, In 1874: the Universal Postal Union was created by the Treaty of Bern, revolutionizing international mail services
October 9, 1941: US President Franklin D. Roosevelt approves an atomic program that would become the Manhattan Project

Ancient piece of driftwood hidden for thousands of years could hold secrets for combating climate change
A 3,775-year-old log found in Canada had barely lost any of its carbon content since being buried, indicating “wood vaulting” is a viable means of carbon storage.

New ‘biological aging’ test predicts your odds of dying within the next 12 months
A new test uses a cheek swab to predict your risk of death within one year — how does it work?

How strong can hurricanes get?
There’s a theoretical limit to the maximum sustained wind speeds of hurricanes, but climate change may increase that “speed limit.”

World’s most powerful X-ray laser set for massive upgrade that will help us better understand the atomic world
Researchers will be able to analyze chemical compounds and atoms in greater detail than ever before using the brightest, clearest laser of its kind anywhere in the world

‘Every volcano has its own personality’: Mystery Mount Adams earthquake surge under investigation
Scientists are installing multiple temporary seismic monitoring stations to get a better understanding of the sharp increase in earthquakes recorded at Mount Adams. Read more.

Never-before-seen head of prehistoric, car-size ‘millipede’ solves evolutionary mystery
The fossil showed unique stalked eyes and centipede-like characteristics.

PHOTOS OF THE DAY

Bangkok, Thailand
Dancers perform a dragon dance during the vegetarian festival celebration at Yaowarat, Bangkok’s Chinatown
Photograph: Peerapon Boonyakiat/Sopa Images/Rex/Shutterstock

London, UK
Three Studies for a Portrait of Isabel Rawsthorne during a preview for the National Portrait Gallery’s Francis Bacon: Human Presence exhibition
Photograph: Lucy North/PA

​​​​​​​Durham, UK
An art installation called Space by Luxmuralis is projected on to the interior of Durham Cathedral. This year projections will include original footage of a rocket launch and an image of Earth under a galaxy of stars
Photograph: Ian Forsyth/Getty
Market Closes for October 9^th, 2024

Market Index	Close	Change
Dow Jones	42512.00	+431.63
		+1.03%
S&P 500	5792.04	+40.91
		+0.71%
NASDAQ	18291.62	+108.70
		+0.60%
TSX	24224.90	+152.39
		+0.63%

International Markets

Market Index	Close	Change
NIKKEI	39277.96	+340.42
		+0.87%
HANG SENG	20637.24	-289.55
		-1.38%
SENSEX	81467.10	-167.71
		-0.21%
FTSE 100*	8243.74	+53.13
		+0.65%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.258	3.236
CND. 30 Year Bond	3.369	3.346
U.S. 10 Year Bond	4.0726	4.0119
U.S. 30 Year Bond	4.3408	4.2936

Currencies

BOC Close	Today	Previous
Canadian $	0.7293	0.7341
US $	1.3712	1.3622

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.5001	0.6666
US $	1.0940	0.9141

Commodities

Gold	Close	Previous
London Gold Fix	2639.90	2640.95
Oil
WTI Crude Future	73.24	73.57

Market Commentary:
📈 On  this day in 1998, Japan’s Nikkei 225 index, formerly the measure of the mightiest stock market in the world, closed at 12879.97. That was down nearly 67% from the then-record high it had notched in late 1989. 
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.6% at 24,224.90 in Toronto.
The move follows the previous session’s decrease of 0.1%.
Shopify Inc. contributed the most to the index gain, increasing 1.5%. 
Bird Construction Inc. had the largest increase, rising 11.9%.
Today, 148 of 223 shares rose, while 71 fell; 10 of 11 sectors were higher, led by information technology stocks.
Insights
* This year, the index rose 16%, heading for the best year since 2021
* The index advanced 26% in the past 52 weeks. The MSCI AC Americas Index gained 33% in the same period
* The S&P/TSX Composite is at its 52-week high and 29.6% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 0.9% in the past 5 days and rose 5.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.3 on a trailing basis and 16.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.82t
* 30-day price volatility fell to 9.24% compared with 9.38% in the previous session and the average of 10.99% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 33.1000| 1.6| 9/1
Financials | 31.8292| 0.4| 20/7
Energy | 27.6583| 0.7| 18/22
Industrials | 26.0876| 0.8| 24/3
Materials | 19.3077| 0.7| 35/15
Consumer Discretionary | 8.2149| 1.0| 10/1
Utilities | 2.3643| 0.3| 9/6
Real Estate | 2.3103| 0.4| 9/10
Consumer Staples | 1.6795| 0.2| 9/2
Health Care | 0.1003| 0.1| 2/2
Communication Services | -0.2453| 0.0| 3/2
===============================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 13.8700| 1.5| -8.9| 10.9
RBC | 12.7500| 0.8| 1.7| 25.2
Brookfield Corp | 9.6580| 1.3| -9.0| 36.5
Couche-Tard | -3.3430| -0.8| -28.3| -5.4
Bank of Nova Scotia| -3.4360| -0.6| -33.1| 10.2
Fairfax Financial | -6.2150| -2.4| 92.8| 35.6
US
By Rita Nazareth
(Bloomberg) — Wall Street traders gearing up for key inflation data sent stocks to fresh all-time highs.
Treasuries retreated while the dollar notched its longest winning run in more than two years.
On the eve of a report expected to show consumer prices continued to moderate, the S&P 500 approached 5,800.
The gauge hit its 44th record in 2024, with tech shares once again leading the charge.
Apple Inc. climbed 1.7%.
Nvidia Corp. halted a five-day rally.
Tesla Inc. edged lower ahead of the Robotaxi launch.
Alphabet Inc. fell 1.5% on news the US is weighing a Google breakup in a historic big-tech antitrust case.
Major technology stocks have undergone volatility in both directions of late, but weakness represents an attractive buying opportunity, according to Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management.
“We remain positive on the tech sector as well as the outlook for artificial intelligence,” and “against this backdrop, we believe volatility should be utilized to build long-term AI exposure,” she said.
Markets barely budged after minutes of the latest Federal Reserve gathering, which showed Jerome Powell received some pushback on a half-point rate cut in September, as some officials preferred a smaller reduction.
“Today’s Fed minutes were pretty ‘ho-hum,’ which could actually be a good thing for stock investors,” said David Russell at TradeStation. “Policymakers agree inflation is fading and they see potential weakness in job growth.
That keeps rate cuts on the table if needed.
The bottom line is that Powell might have the market’s back headed into the year end.”
The S&P 500 rose 0.7%.
The Nasdaq 100 added 0.8%.
The Dow Jones Industrial Average climbed 1%.
The yield on 10-year Treasuries advanced five basis points to 4.06%.
The Bloomberg Dollar Spot Index rose 0.4% — up for an eighth straight session.
Oil held steady as US crude inventories swelled and traders monitored China’s plans for fiscal policy.
US inflation probably moderated at the end of the third quarter, reassuring a Fed that’s shifting more of its policy focus toward shielding the labor market.
The consumer price index is seen rising 0.1% in September, its smallest gain in three months.
Compared with a year earlier, the CPI probably rose 2.3%, the sixth-straight slowdown and the tamest since early 2021.
The gauge excluding the volatile food and energy categories, which provides a better view of underlying inflation, is projected to rise 0.2% from a month earlier and 3.2% from September 2023.
“The Fed’s decision to shift its focus from inflation to the labor market means that inflation data, including tomorrow’s CPI, is likely to become less market-moving than it had been,” said Matthew Weller at Forex.com and City Index. “Despite that logical observation, this month’s CPI report may still drive market volatility coming on the back of Friday’s stellar jobs report, a reading that hints at the potential for renewed upside risks to inflation.”
A survey conducted by 22V Research shows that 42% of investors expect the market reaction to CPI to be “mixed/negligible,” 32% said “risk-off” and only 25% think “risk-on.”
“There is optimism about inflation generally,” said Dennis DeBusschere, founder of 22V. He also noted that the share of investors expecting a recession has fallen while the percentage of those who believe financial conditions need to tighten hit the highest since June.
For the bull run in stocks to continue, inflation needs to continue to ebb, the economy needs to make a soft landing and Corporate America’s earnings growth needs to remain strong and broaden, according to Ed Clissold at Ned Davis Research.
While Saturday marks the two-year anniversary of the bull-market, a crucial piece of the current rally that’s been missing for much of the past few years — broader breadth — may juice the next leg higher for share gains.
Large caps and growth shares have historically outperformed in the third year of a bull market, but they are currently overbought versus small-cap companies and value equities, Clissold noted.
Meantime, billionaire investor Bill Gross says the rally that’s helped US stocks almost double in value over the past five years is tapering off, and investors should expect low but positive returns on their investments.
He recommends keeping exposure to the stock market at average levels, while focusing portfolios more on defensive stocks with a small position in bonds.
“No bear market, but it’s not the same bull market anymore,” Gross, the co-founder and former chief investment officer of Pacific Investment Management Co., wrote.

Corporate Highlights:
* Tesla Inc. enjoyed its best-ever quarter for China shipments, as vehicles delivered from its Shanghai factory rose for a third consecutive month.
* Taiwan Semiconductor Manufacturing Co. posted a better-than-expected 39% rise in quarterly revenue, assuaging concerns that AI hardware spending is beginning to taper off.
* Rio Tinto Group has agreed to buy Arcadium Lithium Plc in an all-cash deal valuing the US-listed miner at $6.7 billion, expanding its grip on the battery metal and stepping back into the M&A fray with its biggest deal in 17 years.
* B. Riley Financial Inc.’s lenders are getting more oversight of the company’s finances, including weekly updates on its liquidity and some of its dealmaking amid efforts to pull the money-losing investment firm out of its tailspin.
* Generac Holdings Inc. is running low on portable backup generators after Hurricane Helene and other recent storms knocked out power for millions of Americans.
* GSK Plc said it will pay as much as $2.2 billion to resolve about 80,000 US court cases related to allegations that its old reflux medication Zantac was contaminated with a suspected carcinogen.

Key events this week:
* US CPI, initial jobless claims, Thursday
* Fed’s John Williams and Thomas Barkin speak, Thursday
* JPMorgan, Wells Fargo kick off earnings season for the big Wall Street banks, Friday
* US PPI, University of Michigan consumer sentiment, Friday
* Fed’s Lorie Logan, Austan Goolsbee and Michelle Bowman speak, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.7% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.8%
* The Dow Jones Industrial Average rose 1%
* The MSCI World Index rose 0.6%
* Bloomberg Magnificent 7 Total Return Index was little changed
* The Russell 2000 Index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.4% to $1.0939
* The British pound fell 0.3% to $1.3065
* The Japanese yen fell 0.8% to 149.32 per dollar
Cryptocurrencies
* Bitcoin fell 2.2% to $60,966.5
* Ether fell 1.1% to $2,415.64
Bonds
* The yield on 10-year Treasuries advanced five basis points to 4.06%
* Germany’s 10-year yield advanced one basis point to 2.26%
* Britain’s 10-year yield was little changed at 4.18%
Commodities
* West Texas Intermediate crude fell 0.2% to $73.44 a barrel
* Spot gold fell 0.5% to $2,609.26 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Denitsa Tsekova.

Have a lovely evening everyone.

Be magnificent!

Shab
“What do we live for, if it is not to make life less difficult for each other?”– Mary Ann Evans “George Eliot”

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828