Category: Events

Dear Friends,

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

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

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

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

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

Seems bad: Trees are growing in the Arctic tundra. 

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

PHOTOS OF THE DAY

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

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

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

Market Closes for August 11^th, 2022

Market Index	Close	Change
Dow Jones	33336.67	+27.16
		+0.08%
S&P 500	4207.27	-2.97
		-0.07%
NASDAQ	12779.91	-74.89 -0.58%
TSX	19991.88	+105.94
		+0.53%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27819.33	-180.63
		-0.65%
HANG SENG	20082.43	+471.59
		+2.40%
SENSEX	59332.60	+515.31
		+0.88%
FTSE 100*	7465.91	-41.20 -0.55%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.785	2.671
CND. 30 Year Bond	2.887	2.766
U.S.    10 Year Bond	2.8876	2.7809
U.S. 30 Year Bond	3.1749	3.0326

Currencies

BOC Close	Today	Previous
Canadian $	0.7833	0.7827
US $	1.2767	1.2777
Euro Rate 1 Euro=		Inverse
Canadian $	1.3177	0.7589
US $	1.0321	0.9689

Commodities

Gold	Close	Previous
London Gold Fix	1795.05	1795.25
Oil
WTI Crude Future	94.34	91.93

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

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

Be magnificent!
As ever,

Carolann

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

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
August 10,1846: Smithsonian Institution established.
1945: Japan surrenders.
August 10, 1993: American jurist Ruth Bader Ginsburg is sworn in as an associate justice of the U.S. Supreme Court, becoming the second woman to serve on the court.  She remained in office until her death in September 2020.
Happy 60th Anniversary Spidey!  1962 Marvel Comics superhero Spider-Man made his debut in issue 15 of “Amazing Fantasy.”  Go to article »

A ‘potentially hazardous’ blue-whale-size asteroid will zip through Earth’s orbit on Friday:  A “potentially hazardous” asteroid the size of a blue whale is set to zip past Earth on Friday (Aug. 12), according to NASA.  The asteroid, named 2015 FF, has an estimated diameter between 42 and 92 feet (13 and 28 meters), or about the body length of an adult blue whale (Balaenoptera musculus), and it will zoom past the Earth at 20,512 mph (33,012 km/h).  Full Story: Live Science (8/10) 

Online shopping prices are suddenly falling fast.  We love good inflation news. If you want to treat yourself to a little retail therapy, now is a great time to snag online deals.

This travel company wants tourists to visit Ukraine right now:  Hmmm… a tourism organization is selling tickets to experience what it’s like in the middle of a war. But for obvious reasons, Ukrainian and US officials are advising against it. 

How to watch the Perseids peak (despite the full moon):  Once a year, from mid-July to late August, Earth passes through a cosmic junk heap that pelts our planet with thousands of tiny space rocks no wider than a grain of sand. We call this annual event the Perseid meteor shower — or simply the Perseids.  This year, the Perseids peak in the dark hours between Aug. 11 and 12. Unfortunately, the fact that there’s a bright full moon around the same time will dampen the show. You may be able to see 10 – 20 meteors per hour during the peak, according to NASA – down from the 50 to 60 per hour visible on a non-full-moon year. Still, you should be able to catch some shooting stars in the nights leading up to the peak, as well.  Full Story: Live Science (8/8) 

The Rhine is about to become impassable.

Oh, goody, another new virus.

The strong force is strong.

How to tie all the climbing knots you’ll ever need.
PHOTOS OF THE DAY

A view of the Roman camp Aquis Querquennis, located on the banks of the Limia River. The camp is usually under water but can now be seen because of the low water levels
CREDIT: Brais Lorenzo/EPA

Farmers wearing handmade caps to protect them from the heat of the sun collect water lilies early in the morning
CREDIT: Mustasinur Rahman Alvi/Rex/Shutterstock

A woman experiences the feeling of colour and light projection delivered by optical fibres to her eyelids during at an exhibition on computer graphics and interactive techniques
CREDIT: Xinhua/Rex/Shutterstock
Market Closes for August 10^th, 2022

Market Index	Close	Change
Dow Jones	33309.51	+535.10
		+1.63%
S&P 500	4210.24	+87.77
		+2.13%
NASDAQ	12854.80	+360.87 +2.89%
TSX	19885.94	+307.64
		+1.57%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27819.33	-180.63
		-0.65%
HANG SENG	19610.84	-392.60
		-1.96%
SENSEX	58817.29	-35.78
		-0.06%
FTSE 100*	7507.11	+18.96 +0.25%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.671	2.694
CND. 30 Year Bond	2.766	2.764
U.S.    10 Year Bond	2.7809	2.7773
U.S. 30 Year Bond	3.0326	2.9895

Currencies

BOC Close	Today	Previous
Canadian $	0.7827	0.7761
US $	1.2777	1.2885
Euro Rate 1 Euro=		Inverse
Canadian $	1.3158	0.7600
US $	1.0299	0.9710

Commodities

Gold	Close	Previous
London Gold Fix	1795.25	1784.05
Oil
WTI Crude Future	91.93	90.50

Market Commentary:
On this day in 1971, “socially responsible” investing came out of the counterculture and went mainstream. Pax World Fund, the first broadly diversified mutual fund to invest in companies based on social and environmental criteria, was launched in Washington, D.C., by Luther Tyson and Jack Corbett
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 1.6% at 19,885.94 in Toronto.
The move was the biggest since rising 1.8% on July 19 and follows the previous session’s decrease of 0.5%.
Shopify Inc. contributed the most to the index gain, increasing 9.8%.
Boyd Group Services Inc. had the largest increase, rising 20.6%.
Today, 192 of 238 shares rose, while 43 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* In the past year, the index had a similar or greater gain eight times. The next day, it advanced six times for an average 0.6% and declined twice for an average 1%
* The index declined 3% in the past 52 weeks. The MSCI AC Americas Index lost 6.9% in the same period
* The S&P/TSX Composite is 10.5% below its 52-week high on April 5, 2022 and 9.4% above its low on July 14, 2022
* The S&P/TSX Composite is up 1.7% in the past 5 days and rose 4.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.2 on a trailing basis and 12.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.13t
* 30-day price volatility rose to 15.37% compared with 14.72% in the previous session and the average of 18.19% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 120.9538| 2.0| 23/6
* Information Technology | 54.2352| 4.8| 13/1
* Materials | 30.0186| 1.4| 34/16
* Energy | 27.3130| 0.8| 31/5
* Industrials | 26.7800| 1.1| 25/4
* Consumer Discretionary | 16.0964| 2.4| 13/0
* Real Estate | 10.6741| 2.0| 23/0
* Consumer Staples | 10.4388| 1.3| 10/1
* Communication Services | 8.3829| 0.9| 7/0
* Health Care | 3.1512| 4.4| 6/1
* Utilities | -0.4050| 0.0| 7/9
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | 36.2800| 9.8| -3.0| -70.2
* Brookfield Asset Management | 30.3100| 4.7| 51.7| -11.3
* TD Bank | 24.3200| 2.3| -47.6| -12.6
* Centerra Gold | -2.6210| -21.6| 265.7| -35.7
* Intact Financial | -2.8740| -1.2| 11.6| 15.4
* CAE | -12.8000| -17.6| 355.0| -14.2
US
By Rita Nazareth
(Bloomberg) — Stocks surged and the dollar sank as softer-than-expected inflation data fueled bets the Federal Reserve could pivot to a smaller pace of hikes — a view taken with a grain of salt by market watchers saying officials may still be a long ways from achieving their goal.
Traders went risk-on Wednesday, with the S&P 500 jumping to a three-month high.
A rally in tech shares sent both Nasdaq indexes more than 20% above their June bottom, leaving them in a bull market going by a commonly held definition.
The CBOE Volatility Index slumped below 20, a level last seen in April.
The greenback slid the most since the onset of the pandemic.
Treasury two-year yields trimmed a plunge that earlier reached 20 basis points.
For a market plagued by fears about the Fed’s struggles to tame the inflation beast, the July consumer price index brought a sigh of relief — with both core and overall measures coming in below forecasts.
Swaps are now suggesting a move of 50 basis points as more likely in September than a repeat of the 75-basis-point increases that officials have opted to implement at their past two meetings.
“This is overall good news for risky assets,” wrote Florian Ielpo, head of macro at Lombard Odier Asset Management, adding that “a lower growth rate of prices does not mean the end of inflation, and naturally the end of hawkish central banking.  Inflation remains a situation that requires the Fed’s attention and more importantly the Fed’s measures.”
One danger of the stock-market bullishness right now is that could cause a relaxation of financial conditions that would actually go against the Fed’s goals.
It’s also worth looking back to the early 1980s, when then Fed Chair Paul Volcker eased policy as inflation peaked and the economy entered a recession.
But the moderation of price pressures proved to be much slower than officials wanted — and they had to tighten again months later.
In fact, the CPI surprise is just one piece of the intricate puzzle officials are playing with at the moment – and possibly over the next several months — with the central bank still miles away from reaching its inflation target.
Food prices in the US soared the most since 1979 in July, keeping the cost of living painfully high even as lower gasoline costs offered some relief to consumers.
Two Fed officials responded to softening inflation data by saying it doesn’t change the US central bank’s path toward even higher rates this year and next.
Alluding to market pricing of the policy path, Fed Bank of Minneapolis President Neel Kashkari said it was not realistic to conclude the central bank will start cutting rates in early 2023.
His Chicago counterpart Charles Evans said officials will probably continue hiking into next year to bring down “unacceptably high” inflation.
“The easing of financial conditions likely annoys the Fed, and we should not be surprised to see Fed speakers continue to try to talk down the market and risk assets,” said Christian Hoffmann, portfolio manager at Thornburg Investment Management.

More comments on CPI:
* “The Fed still has significantly further to tighten and the US economy ultimately cannot avoid its fate. Enjoy today and the next few weeks, it won’t last for too long,” said Seema Shah, chief global strategist at Principal Global  
Investors.
* “This data point will fuel talk of a policy pivot. But, for me, the issue really does boil down to the labor market. Wage growth is running red hot and absent a turnaround in productivity, this will ultimately fuel higher prices,” wrote
Neil Dutta, head of economics at Renaissance Macro Research.
* “This is a step in the right direction but keep in mind we have many miles ahead of us before inflation normalizes. One month’s data point does not make a trend, however, so cautious optimism is likely the name of the game,” said Mike Loewengart, managing director of investment strategy at E*TRADE from Morgan Stanley.
* “Wow, finally the anecdotal evidence that inflation was easing has finally showed up in a mainstream inflation report. The Fed is rapidly losing its case for further tightening and this report reinforces for investors that either a new easing cycle has already begun or we are getting very close to one,” said Jim Paulsen, chief investment strategist at the Leuthold Group.
In corporate news, Tesla Inc. climbed after Elon Musk offloaded $6.9 billion of stock in the electric-vehicle maker to accumulate cash ahead of a trial that could force the billionaire to follow through on an agreement to acquire Twitter
Inc.
Wendy’s Co. became the latest restaurant chain to show signs of strain thanks to rising inflation as sales and restaurant margin fell short of Wall Street projections.
What to watch this week:
* US PPI, initial jobless claims, Thursday
* San Francisco Fed President Mary Daly is interviewed on Bloomberg Television, Thursday
* Euro-area industrial production, Friday
* US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 2.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.8%
* The Dow Jones Industrial Average rose 1.6%
* The MSCI World index rose 1.8%
Currencies
* The Bloomberg Dollar Spot Index fell 1%
* The euro rose 0.9% to $1.0302
* The British pound rose 1.2% to $1.2220
* The Japanese yen rose 1.6% to 132.93 per dollar
Bonds
* The yield on 10-year Treasuries advanced one basis point to 2.79%
* Germany’s 10-year yield declined three basis points to 0.89%
* Britain’s 10-year yield declined two basis points to 1.95%
Commodities
* West Texas Intermediate crude rose 1.1% to $91.49 a barrel
* Gold futures fell 0.4% to $1,805.90 an ounce
–With assistance from Isabelle Lee, Natalia Kniazhevich, Enrique Roces, Emily Graffeo, Andreea Papuc, Sunil Jagtiani, John Viljoen, Cecile Gutscher and Peyton Forte.
Have a lovey evening.

Be magnificent!
As ever,

Carolann

War is mainly a catalogue of blunders. –Winston Churchill, 1874-1965.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
On Aug. 9, 1945, the United States exploded a nuclear device over Nagasaki, Japan, instantly killing an estimated 39,000 people. The explosion came three days after the atomic bombing of Hiroshima.  Go to article »

Also on this day, in 1969, actress Sharon Tate  and four others were murdered by followers of Charles Manson, leader of a communal religious cult know as the “Family.”
1974: Nixon resigns.

Where you can drink some of the rarest beers in the world.  Talk about raising the bar! This beer garden in North Carolina holds the world record for most drafts on tap. 

There’s a lot more to nothingness than you think.

The human brain is a perpetual prediction machine.

At the quantum level, reality is anything but solid.

The Loch Ness monster might be a giant eel. 

PHOTOS OF THE DAY

Lightning strikes through smoke from fuel storage tanks that exploded near Cuba’s supertanker port
CREDIT: Alexandre Meneghini/Reuters

A view of the abandoned Gamsutl village, Russia’s third oldest settlement, meaning ‘at the foot of the Khan’s tower’. Its complete absence of a population means Gamsutl is called a ‘ghost village’
CREDIT: Anadolu Agency/Getty Images

Moored boats look like they are branches of a tree, on the Shitalakshya River in Narayanganj
CREDIT: Mustasinur Rahman Alvi/Rex/Shutterstock

Market Closes for August 9^th, 2022

Market Index	Close	Change
Dow Jones	32774.41	-58.13
		-0.18%
S&P 500	4122.47	-17.59
		-0.42%
NASDAQ	12493.93	-150.53 -1.19%
TSX	19578.30	-90.87
		-0.46%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27999.96	-249.28
		-0.88%
HANG SENG	20003.44	-42.33
		-0.21%
SENSEX	58853.07	+465.14
		+0.80%
FTSE 100*	7488.15	+5.78 +0.08%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.694	2.674
CND. 30 Year Bond	2.764	2.746
U.S.    10 Year Bond	2.7773	2.7572
U.S. 30 Year Bond	2.9895	2.9847

Currencies

BOC Close	Today	Previous
Canadian $	0.7761	0.7775
US $	1.2885	1.2861
Euro Rate 1 Euro=		Inverse
Canadian $	1.3160	0.7599
US $	1.0213	0.9791

Commodities

Gold	Close	Previous
London Gold Fix	1784.05	1773.25
Oil
WTI Crude Future	90.50	90.76

Market Commentary:
On this day in 1974, President Richard M. Nixon, crippled by the Watergate scandal, resigned. The Dow Jones Industrial Average dropped by 1% to 777.30.
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian equities tumbled, dragged down by technology stocks as investor concern over a global recession grows.
The S&P/TSX Composite fell 0.5% at 19,578.30 in Toronto, ending a 4-day gain.
The loss follows the previous session’s increase of 0.2%.
On Tuesday, 7 of 11 sectors lost; 151 of 238 shares fell, while 84 rose.
Shopify Inc. contributed the most to the index decline, decreasing 7.5%.
Nuvei Corp. had the largest percentage drop, falling 21%.
Insights
* The index declined 4.2% in the past 52 weeks. The MSCI AC Americas Index lost 8.9% in the same period
* The S&P/TSX Composite is 12% below its 52-week high on April 5, 2022 and 7.8% above its low on July 14, 2022
* The S&P/TSX Composite is up 0.4% in the past 5 days and rose 2.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14 on a trailing basis and 12.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.14t
* 30-day price volatility fell to 14.7% compared with 14.9% in the previous session and the average of 18.3% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -52.9874| -4.5| 1/13
* Financials | -24.9566| -0.4| 8/21
* Industrials | -14.8787| -0.6| 9/20
* Consumer Staples | -11.3410| -1.4| 1/10
* Health Care | -6.1354| -8.0| 0/7
* Consumer Discretionary | -5.0353| -0.7| 3/10
* Real Estate | -2.8140| -0.5| 9/13
* Utilities | 4.0311| 0.4| 11/5
* Communication Services | 4.3607| 0.5| 4/3
* Energy | 6.9309| 0.2| 22/15
* Materials | 11.9667| 0.5| 16/34
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -30.0600| -7.5| -8.2| -72.8
* Couche-Tard | -7.8110| -2.4| -6.1| 5.2
* TD Bank | -6.1420| -0.6| -71.0| -14.6
* Canadian Natural Resources | 3.3410| 0.6| -6.3| 27.0
* Barrick Gold | 3.9240| 1.5| 172.3| -12.0
* Nutrien | 14.5100| 3.5| 7.2| 19.7
US
By Rita Nazareth
(Bloomberg) — Stocks retreated as a downbeat outlook from another giant chipmaker added to recession fears, with many traders unwilling to make any risky bets before Wednesday’s pivotal inflation reading.
A rally that drove the S&P 500 up more than 10% from its June lows hit a wall amid a fourth straight day of losses.
The Nasdaq 100 underperformed after Micron Technology Inc.’s warning provided more evidence of the collapsing demand for chips.
All 30 companies in the Philadelphia Semiconductor Index fell, with the gauge down 4.6%.
The surge in meme shares like Bed Bath & Beyond Inc. and GameStop Corp. sputtered.
Investors turned more cautious ahead of July’s consumer-price index, which is forecast to cool a bit while still remaining at high levels.
The report will come on the heels of recent jobs figures underscoring solid wage growth and US productivity data highlighting another surge in labor costs that could further complicate the Federal Reserve’s efforts to tame inflation.
“A hotter-than-anticipated CPI report will pressure markets this week. An in-line report could be taken in stride as investors have priced in a 75 basis point move by the Fed” in September, wrote Lindsey Bell, chief markets and money
strategist for Ally. “Either way, we still have to get through another jobs report, more inflation data, and Jackson Hole before we get to the Fed’s September meeting. It could be a volatile several weeks ahead.”
Timing the peak in inflation isn’t easy, especially after June’s CPI print turned out to be hotter than expected, but being right in doing so has brought investors a hefty return.
Those buying the S&P 500 at major inflation peaks going back to 1940 have seen the index post an average rally of 16% in the next 12 months, according to data compiled by Leuthold Group.
A big caveat is: the price-to-earnings ratio has averaged 12.7 in prior instances on a normalized basis, compared with above 20 now.
Highly optimistic analyst recommendations are flashing a warning signal for stocks, according to Citigroup Inc. strategists led by Robert Buckland.
An index of global sell-side ratings “is back to peak bullishness levels reached in 2000 and 2007, after which global equities halved,” they wrote.
Strategists from Morgan Stanley and Goldman Sachs Group Inc. have already warned that analysts’ expectations are unrealistic.
Meanwhile, JPMorgan Chase & Co.’s Marko Kolanovic, one of Wall Street’s staunchest bulls, said investors should modestly trim stock holdings after equities outpaced other assets amid receding recession fears.
“Near the mid-June lows, we discussed that we would not be selling equities given markets were already pricing in a lot of bad news. However, with the strong equity rebound since then and our view that the near-term upside is capped, the risk/reward appears less favorable,” said Keith Lerner, chief market strategist at Truist Advisory Services.
Among other corporate highlights, Novavax Inc. plummeted as the drugmaker slashed its revenue forecast on disappointing demand for its Covid-19 vaccine that trailed competitors getting to market.
Boeing Co. delivered 23 of its 737 Max jetliners and three freighters in July, down from 51 total commercial aircraft shipments in June.
Elsewhere, Bitcoin resumed its slump, ending a four-day winning streak as volatility continued to whipsaw the crypto world.
What to watch this week:
* US CPI data, Wednesday
* Chicago Fed President Charles Evans and his Minneapolis counterpart Neel Kashkari due to speak, Wednesday
* US PPI, initial jobless claims, Thursday
* San Francisco Fed President Mary Daly is interviewed on Bloomberg Television, Thursday
* Euro-area industrial production, Friday
* US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.1%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World index fell 0.5%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.1% to $1.0208
* The British pound was little changed at $1.2073
* The Japanese yen fell 0.1% to 135.13 per dollar
Bonds
* The yield on 10-year Treasuries advanced three basis points to 2.79%
* Germany’s 10-year yield advanced two basis points to 0.92%
* Britain’s 10-year yield advanced two basis points to 1.97%
Commodities
* West Texas Intermediate crude fell 0.1% to $90.63 a barrel
* Gold futures rose 0.3% to $1,811.10 an ounce
–With assistance from Andreea Papuc, Sunil Jagtiani, Srinivasan Sivabalan, Cecile Gutscher, Isabelle Lee, Natalia Kniazhevich, Rich Miller and Bailey Lipschultz.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Whoever is happy will make others happy. –Anne Frank, 1929-1945.

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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Monday.
August 8, 1945: The United States, the Soviet Union, the United Kingdom, and France sign the London Agreement, which authorized the Nürnberg trials, in which former Nazi leaders were Indicted and tried as war criminals by the International Military Tribunal.
On Aug. 8, 1974, President Richard Nixon announced he would resign following damaging revelations in the Watergate scandal. Go to article »

The only pan every cook needs.  It doesn’t matter if you’re an amateur foodie or a culinary genius… this piece of cookware should always be in your kitchen. 

Photographer retakes model portraits decades later.  Like fine wine, these models got even better with time. Check out the stunning before and after photos taken years apart. 

Jewelry heist caught on security camera.  This intense footage shows a group of masked men stealing more than $2 million in diamond jewelry. Watch the video here.

Treasure trove of gold and jewels recovered from a 366-year-old shipwreck in the Bahamas:  A treasure trove of gold coins, gemstones and jewels was recently uncovered at a 366-year-old Spanish shipwreck.
In an effort to conserve what’s left of the ship and its prized cargo, an international team of preservationists and underwater archaeologists has been working to recover objects from the shipwreck, which sits in the Atlantic Ocean about 43 miles (70 kilometers) off the coast of the Bahamas.  Full Story: Live Science (8/8) 

Last supermoon of the year — the ‘Sturgeon moon’ rises Aug. 11:  As summer slips into autumn and nights begin to grow longer, the final supermoon of the year will make a big splash Thursday (Aug. 11).
Nicknamed the “Sturgeon Moon,” August’s full moon peaks around 9:36 p.m. EDT on Thursday (0136 a.m. GMT on Friday), although the moon will appear bright and full on Wednesday and Friday night (Aug. 10 and Aug. 12) as well.
Full Story: Live Science (8/8) 

PHOTOS OF THE DAY

A replica of the Swedish East India Company ship, Götheborg, sails down the River Thames. The original ship sank outside of Gothenburg harbour in 1745
CREDIT: Tony Hicks/AP

A rare view of an orangutan climbing a tree. The image won fourth prize in the nature category of the Hamdan International Photography Award
CREDIT: Thomas Vijayan/HIPA/SWNS

A performer proceeds along the 2.2 miles- (3.6km) long Jember Fashion Carnaval route
CREDIT: Robertus Pudyanto/Getty Images

Market Closes for August 8^th, 2022

Market Index	Close	Change
Dow Jones	32832.54	+29.07
		+0.09%
S&P 500	4140.06	-5.13
		-0.12%
NASDAQ	12644.46	-13.09 -0.10%
TSX	19669.17	+49.04
		+0.25%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28249.24	+73.37
		+0.26%
HANG SENG	20045.77	-156.17
		-0.77%
SENSEX	58853.07	+465.14
		+0.80%
FTSE 100*	7482.37	+42.63 +0.57%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.674	2.743
CND. 30 Year Bond	2.746	2.815
U.S.    10 Year Bond	2.7572	2.8268
U.S. 30 Year Bond	2.9847	3.0662

Currencies

BOC Close	Today	Previous
Canadian $	0.7775	0.7731
US $	1.2861	1.2935
Euro Rate 1 Euro=		Inverse
Canadian $	1.3111	0.7627
US $	1.0194	0.9810

Commodities

Gold	Close	Previous
London Gold Fix	1773.25	1783.20
Oil
WTI Crude Future	90.76	89.01

Market Commentary:
On this day in 1896, the Dow Jones Industrial Average, less than three months old, hit the lowest level ever recorded: 28.48, down 30.5% in just ten weeks
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 0.2%, or 49.04 to 19,669.17 in Toronto.
The move was the biggest since rising 1.2% on July 29.
Barrick Gold Corp. contributed the most to the index gain, increasing 3.3%. Canopy Growth Corp. had the largest increase, rising 20.6%.
Today, 175 of 238 shares rose, while 61 fell; 7 of 11 sectors were higher, led by materials stocks.
Insights
* The index declined 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 8.5% in the same period
* The S&P/TSX Composite is 11.5% below its 52-week high on April 5, 2022 and 8.3% above its low on July 14, 2022
* The S&P/TSX Composite is little changed in the past 5 days and rose 3.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14 on a trailing basis and 12.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.13t
* 30-day price volatility fell to 14.90% compared with 15.77% in the previous session and the average of 18.57% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 45.9370| 2.1| 47/3
* Energy | 18.8745| 0.6| 27/11
* Real Estate | 5.7858| 1.1| 20/3
* Communication Services | 4.6778| 0.5| 3/4
* Utilities | 4.3339| 0.4| 13/2
* Health Care | 3.9358| 5.4| 5/2
* Consumer Discretionary | 2.6941| 0.4| 9/4
* Consumer Staples | -1.7893| -0.2| 5/6
* Industrials | -7.2916| -0.3| 18/11
* Information Technology | -8.3081| -0.7| 10/4
* Financials | -19.8235| -0.3| 18/11
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Barrick Gold | 8.2160| 3.3| 96.2| -13.3
* Enbridge | 6.2850| 0.8| 68.2| 12.9
* Cenovus Energy | 6.2500| 3.4| 3.4| 41.8
* Canadian Pacific | -7.3700| -1.1| 75.0| 12.5
* Shopify | -12.8300| -3.1| 6.9| -70.7
* Royal Bank of Canada | -18.2600| -1.5| 1.7| -7.2
US
By Rita Nazareth
(Bloomberg) — Stocks retreated after a three-week rally, with a gloomy forecast from Nvidia Corp. weighing on tech shares and traders awaiting inflation data for clues on the pace of Federal Reserve rate hikes.
The S&P 500 erased gains that reached 1% earlier in the day, while the Nasdaq 100 underperformed after an advance that briefly drove the tech-heavy gauge 20% above its June low.
Nvidia tumbled almost 6.5%, dragging down chipmakers.
Treasuries climbed.
Mounting risks to growth have sparked earnings downgrades, and after recent figures showed gross domestic product shrank for a second straight quarter, some strategists have warned that cuts are only set to ramp up.
Friday’s blowout jobs report spurred JPMorgan Chase & Co. and Evercore ISI to say bigger US rate hikes are now in store this year, with Citigroup Inc. seeing a risk of a 1 percentage-point hike in September.
“The economy still has to digest all this tightening and that will materially slow things,” wrote Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter.  “That hasn’t even really started to occur yet, so celebrating the resilience of earnings and economic data when we’re still in an expanding economy (regardless of the GDP prints) seems to be the equivalent of a coach declaring victory because the game plan should work.”
Morgan Stanley’s Mike Wilson, who correctly predicted this year’s equity selloff, called the recent rebound a “bear-market rally” amid growing fears of a recession.
While he believes inflation has peaked and “will probably fall faster than the market currently expects,” that still doesn’t bode well for stock markets as it’ll reduce operating leverage and weigh on company earnings, he said.
As major equity indexes climbed last week, global hedge funds unwound risky bets — helping explain the lack of urgency to buy protection against potential stock-market declines.
That highlights a sentiment gap between professional speculators displaying a risk-off mood amid uncertainty about the aggressive pace of rate hikes and price action in the stock market, which seemed to reflect a takeaway from Fed Chair Jerome Powell’s press conference that monetary officials will taper the size of rate hikes if growth crumbles.
“Countertrend rallies are characteristic of secular bear-market downtrends, and from that perspective, 2022 has been remarkably similar to previous bear markets in history,” said Seema Shah, chief global strategist at Principal Global
Investors. “Until inflation abates and the Federal Reserve rebalances its priorities away from inflation and toward growth, tempting rallies are likely to remain unsustainable.”
Consumer expectations for US inflation over the coming years declined sharply in the latest survey by the Fed Bank of New York, with a recent drop in gasoline prices playing a big part in those results and likely contributing to a lower
headline rate of inflation for July when the Labor Department releases the data on Wednesday.
Still, almost all inflation measures are running well above the Fed’s 2% target.
In other corporate news, Tesla Inc. joined gains in electric-vehicle firms after the US Senate passed a key tax, climate and health-care bill.
Retail traders who lurk in forums like Reddit’s WallStreetBets are back to betting against Wall Street pros as rallies for meme stocks like Bed Bath & Beyond Inc. and AMC Entertainment Holdings Inc. show shades of last year’s mania.
What to watch this week:
* US CPI data, Wednesday
* Chicago Fed President Charles Evans and his Minneapolis counterpart Neel Kashkari due to speak, Wednesday
* US PPI, initial jobless claims, Thursday
* San Francisco Fed President Mary Daly is interviewed on Bloomberg Television, Thursday
* Euro-area industrial production, Friday
* US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.4%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.1% to $1.0194
* The British pound was little changed at $1.2081
* The Japanese yen was little changed at 135.06 per dollar
Bonds
* The yield on 10-year Treasuries declined seven basis points to 2.76%
* Germany’s 10-year yield declined six basis points to 0.90%
* Britain’s 10-year yield declined 10 basis points to 1.95%
Commodities
* West Texas Intermediate crude rose 1.7% to $90.54 a barrel
* Gold futures rose 0.8% to $1,805.40 an ounce
–With assistance from Andreea Papuc, Sunil Jagtiani, John Viljoen, Vildana Hajric, Isabelle Lee and Elena Popina.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Some things have to be believed to be seen. –Ralph Hodgson, 1871-1962.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday.
August 5, 1962: American actress Marilyn Monroe is pronounced dead at 3:50 AM in her home from a drug overdose.  Monroe died between 8:30 PM & 10:30 PM on August 4^th.  Her films grossed $200 million (equivalent to $2 billion in 2022) by the time of her death in 1962.

August 5, 2011 Standard & Poor’s lowered the United States’ AAA credit rating by one notch to AA-plus. Go to article »

Weird deep-sea worm looks like a luminous lump of spaghetti:  A bizarre seafloor creature covered with luminous orange, spaghetti-like tentacles recently made its internet debut in newly released video footage.  The unusual pom-pom-shaped creature is actually a type of segmented marine worm known as a polychaete, and it belongs to an appropriately named group: spaghetti worms.  Full Story: Live Science (8/5) 

Mass grave of Revolutionary War mercenaries and rare gold coin unearthed in New Jersey:  Researchers at a Revolutionary War battlefield in New Jersey have unearthed a mass grave holding the remains of around a dozen Hessian mercenaries who died during the Battle of Red Bank in 1777.  Volunteer diggers also unearthed a number of treasures, including weapons and a rare 1776 King George III gold guinea coin.
Full Story: Live Science (8/4) 

PHOTOS OF THE DAY

Angela Crawford leans against a fence as the McKinney fire burns a hillside above her home in Klamath National Forest. Crawford and her husband stayed, as other residents evacuated, to defend their home from the fire.
CREDIT: Noah Berger/AP

Two children run through spray mist coming out of a hose in order to refresh at Karlsplatz Charles Square
CREDIT: Georg Hochmuth/APA/AFP/Getty Images

Mustafa-Ibn-Jameel has created a new world record by writing the Qur’an on a 500-metre-long paper scroll. It took him seven months
CREDIT: Anadolu Agency/Getty Images

Market Closes for August 5^th, 2022

Market Index	Close	Change
Dow Jones	32803.47	+76.65
		+0.23%
S&P 500	4145.19	-6.75
		-0.16%
NASDAQ	12657.55	-63.03 -0.50%
TSX	19620.13	+43.09
		+0.22%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	28175.87	+243.67
		+0.87%
HANG SENG	20201.94	+27.90
		+0.14%
SENSEX	58387.93	+89.13
		+0.15%
FTSE 100*	7439.74	-8.32 -0.11%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.743	2.675
CND. 30 Year Bond	2.815	2.781
U.S.    10 Year Bond	2.8268	2.6865
U.S. 30 Year Bond	3.0662	2.9662

Currencies

BOC Close	Today	Previous
Canadian $	0.7731	0.7773
US $	1.2935	1.2865
Euro Rate 1 Euro=		Inverse
Canadian $	1.3171	0.7592
US $	1.0182	0.9821

Commodities

Gold	Close	Previous
London Gold Fix	1783.20	1761.25
Oil
WTI Crude Future	89.01	88.54

Market Commentary:
On this day in 1997, the Taxpayer Relief Act of 1997 became Federal law, 136 years after Congress first created income taxes. One provision introduced the Roth IRA, which created new ways for middle-class Americans to accumulate tax-free savings.
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian stocks rebounded Friday led by materials, financials, and industrials.
The S&P/TSX Composite rose for the third day, climbing 0.2%, or 43.09, to 19,620.13 in Toronto.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.8%.
Ero Copper Corp. had the largest percentage increase, rising 9.8%.
Today, 118 of 238 shares rose, while 117 fell; 5 of 11 sectors were higher.
Insights
* So far this week, the index fell 0.4%
* The index declined 3.7% in the past 52 weeks. The MSCI AC Americas Index lost 8.5% in the same period
* The S&P/TSX Composite is 11.7% below its 52-week high on April 5, 2022 and 8% above its low on July 14, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.2 on a trailing basis and 12.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.13t
* 30-day price volatility fell to 15.77% compared with 16.55% in the previous session and the average of 18.89% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 19.7591| 0.9| 23/28
* Financials | 16.4953| 0.3| 18/11
* Industrials | 16.3027| 0.6| 15/13
* Energy | 14.3487| 0.4| 30/7
* Health Care | 0.4808| 0.7| 3/3
* Utilities | -0.1518| 0.0| 5/11
* Consumer Discretionary | -0.4273| -0.1| 9/4
* Real Estate | -2.5464| -0.5| 3/20
* Communication Services | -3.0491| -0.3| 1/6
* Information Technology | -6.7930| -0.6| 9/5
* Consumer Staples | -11.3324| -1.4| 2/9
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Canadian Natural Resources | 14.5600| 2.8| 10.1| 25.8
* Canadian Pacific | 9.2280| 1.4| -16.6| 13.8
* Nutrien | 8.7010| 2.2| -33.0| 14.0
* Open Text | -5.5920| -5.6| 33.2| -15.8
* Couche-Tard | -6.6310| -2.0| -21.2| 8.1
* TC Energy | -14.0600| -3.2| 88.0| 8.0
US
By Isabelle Lee, Emily Graffeo and Elaine Chen
(Bloomberg) — US stocks notched a weekly gain after a surprisingly strong jobs report alleviated recession fears but cleared the path for the Federal Reserve to raise rates sharply at its next meeting.
The S&P 500 suffered a decline on Friday after falling as much as 1.1% during the session.
But the index and the Nasdaq  100 wrapped up their third straight week of gains, the longest winning streak since April.
Treasuries sank, with the 10-year yield around 2.83%, after climbing nearly 26 basis points since Monday.
The strong jobs report on Friday validated the Fed’s view of a resilient economy that can withstand additional interest-rate hikes.
Traders have now recalibrated expectations for Fed policy, with a hike of three-quarters of a percentage point the more likely scenario at the September meeting as the central bank battles inflation.
A handful of Fed officials  his week reiterated the central  bank’s resolve to bring down high prices.
Among them is Fed St Louis President James Bullard, who has said he favors a strategy of front-loading big interest-rate hikes.
That stance has likely strengthened after Friday’s job report, ruling out the possibility of a dovish pivot that Fed Chair Jerome Powell hinted at last week.
“This jobs report is consistent with an inflationary boom,” said Neil Dutta, head of economics at Renaissance Macro Research. “The Fed has a lot more work to do and in an odd way, that the Fed needs to get more aggressive in pushing up rates, makes the hard-landing scenario more likely.”
Here’s what else Wall Street is saying about the jobs
surprise:
Win Thin, global head of currency strategy at Brown Brothers Harriman & Co: “Odds of a 75 basis point move next month have shot up, as they should. We still get one more jobs report before the September FOMC but barring a disaster, I think 75 bp then is a done deal.”
Eric Theoret, global macro strategist at Manulife Investment Management: “For the Fed, this report confirms the need to continue tightening and also endorses much of this week’s Fedspeak that sought to jawbone rate expectations. For markets, the report may pose a challenge for rate-sensitive equities like tech which had recently been leading in terms of sector performance.”
Seema Shah, chief strategist at Principal Global Investors: “All the jobs lost during the pandemic have now been regained. But while that is positive news, markets will take today’s number as a timely reminder that there is significantly more Fed hiking still to come. Rates are going above 4% — today’s number should put to bed any doubters.”
Peter Boockvar, chief investment officer at Bleakley Financial Group: “This was a great number with the obvious big upside in hirings but when this is happening at the same time GDP is declining, it means productivity is plunging. Also, as the pace of firing is at the highest level in nine months, this pace of hiring is just not sustainable.”
Keith Lerner, co-chief investment officer at Truist Advisory Services: “Some of the conviction levels around recession are somewhat less. And I think that’s offsetting the other side of the equation which is, OK, that means the Fed will have to be more aggressive. So that’s why you’re netting this out to be a flat day because it really comes down to people questioning their confidence that we were in a recession, which was the primary reason why we were down.”
Corporate earnings, combined with thin liquidity that’s common in the summer, took the stock market on a ride this week.
Many firms beat expectations and proved they could handle high inflation and a gloomy economic outlook.
But investors have resumed shunning global stocks in favor of bonds, according to Bank of America Corp. strategists, who say it’s time to step back from US equities after July’s rally.
US-China tension also remained among the uncertainties clouding the outlook.
China announced it would halt cooperation with the US in a number of areas — including working-level talks on climate change and defense — after US House Speaker Nancy Pelosi’s trip to Taiwan this week.
China also sent warships across the Taiwan Strait’s median line, a day after likely firing missiles over the island.
West Texas Intermediate rose to near $90 a barrel, but remains on track for its biggest weekly decline since April.
Gold fell and Bitcoin gained.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4:02 p.m. New York time
* The Nasdaq 100 fell 0.8%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.7%
* The euro fell 0.7% to $1.0178
* The British pound fell 0.8% to $1.2068
* The Japanese yen fell 1.6% to 135.03 per dollar
Bonds
* The yield on 10-year Treasuries advanced 14 basis points to 2.83%
* Germany’s 10-year yield advanced 15 basis points to 0.96%
* Britain’s 10-year yield advanced 16 basis points to 2.05%
Commodities
* West Texas Intermediate crude fell 0.2% to $88.36 a barrel
* Gold futures fell 0.9% to $1,791.10 an ounce
–With assistance from Cecile Gutscher, Michael McKee, Sagarika Jaisinghani, Vildana Hajric and Olivia Rockeman.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Time is a sort of river of passing events, and strong is its current; no sooner is a thing brought to sight than it is swept by and another takes its place,
and this too will be swept away. –Marcus Aurelius, 121 AD-180 AD.
Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday Eve.
August 4, 1914: In response to the German invasion of Belgium, Great Britain enters World War I, officially declaring war on Germany.
August 4, 1987: The Federal Communications Commission voted to rescind the Fairness Doctrine, which required radio and TV stations to present balanced coverage of controversial issues. Go to article »
1962: Nelson Mandela arrested.
Percy Bysshe Shelley, poet, b. 1792.
Louis Armstrong, musician, b. 1900.
Wm. Schumann, composer, b. 1910.

Ancient Egyptian temple to the sun cult uncovered near Cairo:  Archaeologists have unearthed the remains of a 4,500-year-old temple dedicated to the Egyptian sun god Ra at the site of Abu Ghurab, about 12 miles (20 kilometers) south of Cairo.   The temple was built sometime during ancient Egypt’s fifth dynasty (circa 2465 B.C. to 2323 B.C.) — a “period in which the cult of the sun reached its apex with the construction of a new type of monument specifically devoted to the sun god, commonly known as ‘Sun Temple,'” said Massimiliano Nuzzolo, co-director of the archaeological dig and a researcher at the Institute of Mediterranean and Oriental Cultures of the Polish Academy of Sciences in Warsaw. Full Story: Live Science (8/4) 

James Webb telescope snaps mesmerizing image of Cartwheel Galaxy:  A stunning new image from the James Webb Space Telescope captures the gorgeous Cartwheel Galaxy in never-before-seen detail. The telescope’s composite image, released Tuesday (Aug. 2) furthers our understanding of the peculiar wheel-like star system.   The Cartwheel Galaxy is a chaotic galaxy shrouded in hot dust, 500 million light-years from Earth. And it hides a violent past.  Full Story: Live Science (8/4) 

AI’s snapshot of 200 million proteins will make drug discovery easier. — Lisa Jarvis

Missing: $500 million in copper.

Why the human brain is so efficient.

Notable Numbers:
54
Families in South Korea who volunteered to share data on everything from sleeping habits to trash volumes to help city planners design a new town.  The experiment – Busan’s Eco Delta Smart City – is one of the more far-reaching attempts around the world to create “smart cities”, which aim to use data to optimize city planning and public services.
4
Legs on Pompeii’s newest archaeologist, a robotic “dog” form US technology firm Boston Dynamics.  “Spot” patrols the ruins of the 2,600-year-old Italian city to monitor structural weaknesses and evaluate potential dangers of collapse.

PHOTOS OF THE DAY

An extremely rare sea slug has been spotted for the first time in the UK, according to Cornwall Wildlife Trust and the Isles of Scilly Wildlife Trust. The multi-coloured sea slug, Babakina anadoni, measures 2cm in length and was photographed by a diver near Melledgan, an uninhabited rock island in Scilly
CREDIT: Cornwall Wildlife Trust

People watch lava flowing from a newly erupted volcano in a fissure on the Reykjanes peninsula, south-west of Reykjavík
CREDIT: Jeremie Richard/AFP/Getty Images

The Luxor Obelisk and Arc de Triomphe before sunset. ‘Paris Henge’, when the sun sets in alignment with the Arc de Triomphe, happens twice a year
CREDIT: Stefano Rellandini/AFP/Getty Images

Birkenhead, UKA hoard of newly uncovered Nazi treasures found aboard a rare German submarine which was sunk by allied forces during the Second World War
CREDIT: Christopher Thomond/The Guardian

Market Closes for August 4^th, 2022

Market Index	Close	Change
Dow Jones	32726.82	-85.68
		-0.26%
S&P 500	4151.94	-3.23
		-0.08%
NASDAQ	12720.58	+52.42 +0.41%
TSX	19577.04	+31.10
		+0.16%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27932.20	+190.30
		+0.69%
HANG SENG	20174.04	+406.95
		+2.06%
SENSEX	58298.80	-51.73
		-0.09%
FTSE 100*	7448.06	+2.38 +0.03%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.675	2.716
CND. 30 Year Bond	2.781	2.785
U.S.    10 Year Bond	2.6865	2.7046
U.S. 30 Year Bond	2.9662	2.9453

Currencies

BOC Close	Today	Previous
Canadian $	0.7773	0.7787
US $	1.2865	1.2841
Euro Rate 1 Euro=		Inverse
Canadian $	1.3183	0.7585
US $	1.0248	0.9759

Commodities

Gold	Close	Previous
London Gold Fix	1761.25	1779.75
Oil
WTI Crude Future	88.54	90.66

Market Commentary:
On this day in 1790, Congress enacted Alexander Hamilton’s plan to fund the public debt, ending years of turmoil and haggling over the junk bonds issued by the federal and state governments during the Revolution, making government spending possible, and giving birth to the American securities markets.
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian equities staged a broad rally Thursday as most sectors closed in the green.
Energy trailed, declining 3.1%, as oil fell on data showing lower-than-expected demand in the U.S.
The S&P/TSX Composite rose for a second day, climbing 0.2%, or 31.1 to 19,577.04 in Toronto.
Materials stocks led the market higher, as 9 of 11 sectors gained; 147 of 238 shares rose, while 87 fell.
Canadian Pacific Railway Ltd. contributed the most to the index gain, increasing 2.2%.
Torex Gold Resources Inc. had the largest increase, rising 14.3%.
Insights
* So far this week, the index fell 0.6%
* The index declined 3.7% in the past 52 weeks. The MSCI AC Americas Index lost 7.8% in the same period
* The S&P/TSX Composite is 11.9% below its 52-week high on April 5, 2022 and 7.7% above its low on July 14, 2022
* The S&P/TSX Composite is up 1.7% in the past 5 days and rose 2.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.8 on a trailing basis and 12 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.12t
* 30-day price volatility fell to 16.55% compared with 17.09% in the previous session and the average of 19.05% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 55.0882| 2.6| 42/7
* Industrials | 44.7163| 1.8| 22/7
* Utilities | 12.4012| 1.2| 15/1
* Consumer Staples | 12.0002| 1.5| 9/2
* Consumer Discretionary| 10.2760| 1.5| 5/7
* Financials | 5.1848| 0.1| 20/9
* Real Estate | 1.1793| 0.2| 15/8
* Communication Services| 0.7585| 0.1| 5/2
* Health Care | 0.6733| 0.9| 4/3
* Information Technology| -4.1746| -0.3| 8/6
* Energy | -107.0071| -3.1| 2/35
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Canadian Pacific | 14.2900| 2.2| -40.8| 12.2
* Restaurant Brands | 11.4700| 7.6| 30.2| -1.0
* Barrick Gold | 9.4430| 3.9| 50.7| -15.6
* Cenovus Energy | -14.5600| -7.6| 127.8| 33.5
* Enbridge | -15.3600| -1.9| 121.8| 12.5
* Suncor Energy | -18.0200| -4.5| 31.7| 24.7
US
By Isabelle Lee and Denitsa Tsekova
(Bloomberg) — US stocks wavered on Thursday as traders parsed various corporate earnings against a backdrop of aggressive interest-rate hikes by global central banks.
The US yield curve remained inverted as recession fears persisted.
The S&P 500 ended the session little changed after fluctuating throughout the session.
The Nasdaq 100 closed up higher for the second straight day after swinging between modest gains and losses.
While the tech-heavy index was buoyed by Amazon.com Inc. and Advanced Micro Devices Inc. later in the session, it was also dragged down by Fortinet Inc. after the firm trimmed its service-revenue forecast.
Eli Lilly & Co., which dropped after missing Wall Street expectations for second-quarter revenue, weighed on the S&P 500 Index.
Thin liquidity in the summer also tends to amplify market moves.
Treasury yields wobbled throughout the session, with the 10-year rate around 2.66% after pushing past 2.80% on Wednesday.
A flurry of economic data that released this week assuaged fears of a downturn while hinting at stabilizing growth.
But the bond market, especially the persistently inverted Treasury yield curve, is flashing warnings on the economy amid a global wave of monetary tightening.
All eyes will be on the US jobs report on Friday for further clues about the Federal Reserve’s path of rate hikes.
“There’s an intense tug-of-war happening in the economy and markets,” said Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors. “On one side, you have a narrative that reasonable growth is going to support continued inflation pressure and keep the Fed hiking. The other narrative is that slowing growth is going to ease inflation and allow the Fed to stop hiking.”
On Thursday, Cleveland Fed President Loretta Mester reiterated the central bank’s promise to bring down inflation by raising interest rates.
Her counterparts, this week, have also been backing this hawkish stance, forcing markets to recalibrate after initially expecting a dovish pivot Fed Chair Jerome Powell hinted at last week.
US-China tension also remains among the uncertainties clouding the outlook.
China likely fired missiles over Taiwan during military drills on Thursday, Japan said, part of Beijing’s biggest cross-strait exercises in decades after US House Speaker Nancy Pelosi visited the self-ruled island.
West Texas Intermediate stayed below $90 a barrel, a level last seen in the weeks leading up to Russia’s invasion of Ukraine.
Gold advanced and Bitcoin fell.

What to watch this week:
* US employment report for July, 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 0.4%
* The Dow Jones Industrial Average fell 0.3%
* The MSCI World index rose 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.8% to $1.0246
* The British pound rose 0.2% to $1.2170
* The Japanese yen rose 0.7% to 132.88 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 2.66%
* Germany’s 10-year yield declined seven basis points to 0.80%
* Britain’s 10-year yield declined two basis points to 1.89%
Commodities
* West Texas Intermediate crude fell 2.6% to $88.33 a barrel
* Gold futures rose 1.9% to $1,810.30 an ounce
–With assistance from Cecile Gutscher, Tassia Sipahutar, Garfield Reynolds, Vildana Hajric, Julia Fanzeres, Cindy Wang and Isabel Reynolds.
Have  a lovely evening.

Be magnificent!

As ever,

Carolann

When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them, but protect them against you….
You may know your society is doomed. –Ayn Rand, 1905-1982.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
August 3, 1987: The Iran-Contra congressional hearings ended with none of the 29 witnesses tying President Ronald Reagan directly to the diversion of arms-sales profits to Nicaraguan rebels.  Go to article »
August 3, 1946: America’s first theme park opens its doors in Santa Claus, Indiana, USA. At the time, there were no other US amusement parks with a central theme.
Martha Stewart, lifestyle maven, b. 1941.

Six tasks you’ve been putting off that you need to do now.  This article immediately shamed me. Time to schedule an oil change and a closet clean-out.

Stretching and range of motion exercises can slow cognitive decline as much as aerobic exercises.  They also keep your joints from sounding like a bowl of Rice Krispies in the morning.

Parts of the moon may provide stable temperatures for humans, researchers find.  Say no more. I’m putting my moon boots on as we speak and blowing this popsicle stand once and for all. 

Ancient ‘ritual bath’ and elite villa unearthed by Jerusalem’s Western Wall:  Archaeological excavations beside Jerusalem’s Western Wall have unearthed thousands of years of the city’s history — including an ornate 2,000-year-old villa with a private mikveh, or ritual bath.  The Western Wall is one of the holiest sites in Judaism and it’s visited by millions of worshipers and tourists each year. But visitors typically have to descend 142 steps or make a long detour around the city walls to reach the holy site.  Full Story: Live Science (8/2) 

Thousands of jellyfish swarm near Israel, mesmerizing images reveal:  Jellyfish are swarming in massive numbers in the Mediterranean Sea, close to the port city of Haifa in northern Israel.  The sea was “bedazzled with thousands of white dots,” according to The Jerusalem Post, which also reported that the swarm extended below the surface to depths of several hundred meters.  Full Story: Live Science (8/2) 

RIP, Vin Scully.
PHOTOS OF THE DAY

Water lilies in the gardens of the painter Claude Monet at sunrise
CREDIT: Lou Benoist/AFP/Getty Images

The Egyptian air force’s Silver Stars and South Korea’s Black Eagles aerobatic teams perform during the Pyramids air show
CREDIT: Amr Abdallah Dalsh/Reuters

Members of the Cracovia Danza ballet perform during the Feast of the Cloth Hall
CREDIT: Artur Widak/NurPhoto/Rex/Shutterstock

Market Closes for August 3^rd, 2022

Market Index	Close	Change
Dow Jones	32812.50	+416.33
		+1.29%
S&P 500	4155.17	+63.98
		+1.56%
NASDAQ	12668.16	+319.40 +2.59%
TSX	19545.94	+40.61
		+0.21%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27741.90	+147.17
		+0.53%
HANG SENG	19767.09	+77.88
		+0.40%
SENSEX	58350.53	+214.17
		+0.37%
FTSE 100*	7445.68	+36.57 +0.49%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.716	2.711
CND. 30 Year Bond	2.785	2.832
U.S.    10 Year Bond	2.7046	2.7483
U.S. 30 Year Bond	2.9453	3.0065

Currencies

BOC Close	Today	Previous
Canadian $	0.7787	0.7766
US $	1.2841	1.2876
Euro Rate 1 Euro=		Inverse
Canadian $	1.3058	0.7658
US $	1.0169	0.9834

Commodities

Gold	Close	Previous
London Gold Fix	1779.75	1772.40
Oil
WTI Crude Future	90.66	94.42

Market Commentary:
On this day in 1811, Elisha Graves Otis was born on a farm outside Halifax, Vt. He went on to invent the elevator brake, making skyscrapers practical. Otis demonstrated his innovation at the Crystal Palace exposition in New York in 1854, when he rode an elevator several dozen feet into the air and an assistant chops the hoisting cable with an axe—and the elevator did not fall.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.2% at 19,545.94 in Toronto.
The move follows the previous session’s decrease of 1%.
Shopify Inc. contributed the most to the index gain, increasing 10.8%.
Bausch Health Cos. had the largest increase, rising 13.4%.
Today, 114 of 238 shares rose, while 122 fell; 6 of 11 sectors were higher, led by financials stocks.
Insights
* The index declined 4% in the past 52 weeks. The MSCI AC Americas Index lost 8.1% in the same period
* The S&P/TSX Composite is 12% below its 52-week high on April 5, 2022 and 7.6% above its low on July 14, 2022
* The S&P/TSX Composite is up 3% 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 14.8 on a trailing basis and 12 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.12t
* 30-day price volatility fell to 17.09% compared with 17.12% in the previous session and the average of 19.16% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 70.7642| 1.2| 24/5
* Information Technology | 59.4350| 5.2| 13/1
* Industrials | 19.8875| 0.8| 21/8
* Consumer Discretionary | 5.9727| 0.9| 8/5
* Real Estate | 4.9546| 0.9| 20/2
* Health Care | 1.9653| 2.8| 5/2
* Consumer Staples | -0.1960| 0.0| 3/8
* Communication Services | -4.9719| -0.5| 3/4
* Utilities | -7.1613| -0.7| 4/12
* Materials | -27.8406| -1.3| 8/42
* Energy | -82.1869| -2.3| 5/33
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | 41.3200| 10.8| 15.4| -69.1
* Royal Bank of Canada | 19.9200| 1.6| -31.0| -5.9
* TD Bank | 13.6600| 1.3| -55.1| -13.5
* Cenovus Energy | -12.3300| -6.0| -3.4| 44.4
* Suncor Energy | -15.5900| -3.7| 21.4| 30.5
* Canadian Natural Resources | -21.3200| -3.9| -42.1| 25.2
US
By Vildana Hajric, Isabelle Lee and Natalia Kniazhevich
(Bloomberg) — US stocks snapped a two-day decline as corporate earnings and economic data came in better than expected.
Treasuries trimmed losses as traders priced in further interest-rate hikes from the Federal Reserve.
Solid reports from Moderna Inc. and PayPal Holdings Inc. pushed the Nasdaq 100 up as much as 3%, taking it to a level last seen in May.
The S&P 500 closed up 1.6%.
“Now that we’re 70% through the earnings reporting season, we can clearly say that it’s not the earnings Armageddon that many had feared,” said Art Hogan, chief market strategist at B. Riley Wealth. “That’s important.”
The Treasury 10-year yield pushed past 2.80% before falling to 2.70% later in day as investors recalibrated expectations for the Fed’s rate-hike path.
Recent data also eased concerns of a broader economic slowdown as growth in the US services sector unexpectedly strengthened to a three-month high in July.
Treasuries had rallied last week after Chair Jerome Powell  signaled that the pace of future increases may slow later this year, boosting the odds for cuts next year in market-implied measures.
But several Fed leaders have since said the central bank is far from done with tightening and remains laser-focused on tamping down price gains that are the hottest in four decades.
“If there is a change in tone by Fed members, it is similar to a parent that is finally telling the kids that you’ve had enough candy, no more,” wrote Peter Boockvar, chief investment officer at Bleakley Financial Group. “For decades the Fed always gave the markets more candy, especially when the kids cried out for it. Now, the kids are going to have to do without as long as inflation is at the very unsatisfactory levels that it’s pacing at, even with an expected fall.”
Markets are also somewhat calmer as US-China tensions simmered after House Speaker Nancy Pelosi left Taiwan.
Her visit had provoked an angry response from China, and markets were on the edge ahead of her arrival on Tuesday.
US stocks roared on Wednesday after a session with many twists and turns the previous day.
But equities trading doesn’t reflect the headwinds confronting the market, according to Goldman Sachs Group Inc. strategist Sharon Bell.
“There’s a little bit of complacency in there and markets are not fully taking into account the risks,” Bell said in an interview with Bloomberg TV.
Seeing riskier areas of the equity market reprice higher even as some earnings estimates get slashed indicates that investors may be overly optimistic, said Emily Roland, co-chief investment strategist at John Hancock Investment Management.
“In this environment, we would rebalance into quality companies and sectors that have strong balance sheets and more durable profitability,” she said.
“This is not the right time to emphasize cyclical areas or ones that have a greater need for capital.”
Roland considers tech stocks that meet certain profitability and return metrics “higher quality.”
She would deemphasize consumer discretionary, financials, and industrials, she said.
Thin liquidity during the summer lull also tends to magnify small market moves, said April LaRusse, head of investment specialists at Insight Investments.
“Sometimes that can make it look more exciting than it probably really is,” she said.
The Cboe VIX Index also shows price swings are usually prevalent in the summer and early autumn.
August and September are historically the two worst months for the S&P 500 Index.
Oil fell after a brief rally as traders mulled the lack of relief for oil markets and a poor demand outlook.
The dollar pared gains after hitting a one-week high.  
What to watch this week:
* BOE rate decision, Thursday
* US initial jobless claims, trade, Thursday
* Cleveland Fed President Loretta Mester due to speak, Thursday
* US employment report for July, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.6% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.7%
* The Dow Jones Industrial Average rose 1.3%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0169
* The British pound fell 0.2% to $1.2149
* The Japanese yen fell 0.6% to 133.94 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to
* Germany’s 10-year yield advanced five basis points to 0.87%
* Britain’s 10-year yield advanced four basis points to 1.91%
Commodities
* West Texas Intermediate crude fell 3.7% to $90.97 a barrel
* Gold futures fell 0.4% to $1,782.10 an ounce
–With assistance from John Viljoen and Emily Graffeo.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

You know more than you think you know and less than you want to know. –Oscar Wilde, 1854-1900.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Tuesday.

August 2,1939:  Albert Einstein signed a letter to President Franklin D. Roosevelt urging creation of an atomic weapons research program.  Go to article »

On this day in 1990, Saddam Hussein invaded Kuwait. Over the next two-and-a-half months, the U.S. stock market lost 19% and many experts began to forecast a protracted bear market. Yet, just one year later, the stock market was up 27%.

Angelina Jolie’s daughter is headed to Spelman College.  Zahara Jolie-Pitt is headed to an HBCU in Atlanta. Check out the lovely photo Jolie shared of Zahara with her new Spelman sisters.

Doorbell ‘ringing’ bear:  Watch this doorbell cam footage of a bear casually walking up to a woman’s front door. U-bear eats? Is that you?

Solar storm from hole in the sun will hit Earth on Wednesday (Aug. 3):  High-speed solar winds from a “hole” in the sun’s atmosphere are set to hit Earth’s magnetic field on Wednesday (Aug 3.), triggering a minor G-1 geomagnetic storm.  Forecasters at the National Oceanic and Atmospheric Administration’s Space Weather Prediction Center (SWPC) made the prediction after observing that “gaseous material is flowing from a southern hole in the sun’s atmosphere,” according to spaceweather.com.  Full Story: Live Science (8/1) 

‘Ghost footprints’ left by ancient hunter-gatherers discovered in Utah desert:  Archaeologists recently stumbled upon a set of mysterious “ghost footprints” in the salt flats of a Utah desert.  These unusual ancient tracks get their eerie name not because they are from an ethereal realm, but due to their earthly composition: They become visible only after it rains and the footprints fill with moisture and become darker in color, before disappearing again after they dry out in the sun. Full Story: Live Science (8/2) 

Could we ever eradicate the flu?  For many people, catching the flu might not seem like that big of a deal — you might feel crummy, miss a few days of work or school, and then return to daily life. But this common illness causes tens of thousands of hospitalizations and deaths each year: Between 2010 and 2020, up to 342,000 people died of influenza in the U.S., according to the Centers for Disease Control and Prevention (CDC). During three out of the four flu pandemics in the past two centuries, including the 1918 influenza pandemic, that number jumped into the millions worldwide.  Ending this disease would prevent countless deaths. But is it possible to eradicate the flu?
Full Story: Live Science (8/1)

What is the birthday paradox?  Here’s a fun brain teaser: How large does a random group of people have to be for there to be a 50% chance that at least two of the people will share a birthday? The answer is 23, which surprises many people. How is this possible?  When pondering this question, known as the “birthday problem” or the “birthday paradox” in statistics, many people intuitively guess 183, since that is half of all possible birthdays, given how there are generally 365 days in a year. Unfortunately, intuition often fares poorly at this kind of statistical problem.  Full Story: Live Science (7/30) 

The longest-living animals on Earth:  The animal kingdom boasts some incredibly long lifespans that far exceed the average human’s. While humans may have an “absolute limit” of 150 years, this is just a blink of an eye compared with the centuries and millennia that some animals live through; and some animals can even stop or reverse the aging process altogether.  Although there are very long-living land animals (the oldest tortoise, for example, is nearly 190 years old), none of them make this list — the true age champions all live in water. From old to oldest, here are 10 of the longest-living animals in the world today.  Full Story: Live Science (7/30) 
PHOTOS OF THE DAY

Aerial picture released by Greenpeace showing smoke billowing from a fire in the Amazon forest in the municipality of Apui. The number of wildfires in the Brazilian Amazon increased by 8% in July 2022 compared with the same month last year
CREDIT: Christian Braga/Greenpeace/AFP/Getty Images

A polar bear is observed during the expedition of a Turkish scientific research team in the Arctic Ocean as many animals in the Arctic region faced the danger of extinction
CREDIT: Anadolu Agency/Getty Images

Artist Patricia Piccinini speaks during the press presentation of her exhibition. Patricia Piccinini: We are Connected features unique and bizarre hyperrealistic sculptures of animal-human hybrids
CREDIT: Roslan Rahman/AFP/Getty Images

Market Closes for August 2^nd, 2022

Market Index	Close	Change
Dow Jones	32396.17	-402.23
		-1.23%
S&P 500	4091.19	-27.44
		-0.67%
NASDAQ	12348.76	-20.22 -0.16%
TSX	19505.33	-187.59
		-0.95%

 

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27594.73	-398.62
		-1.42%
HANG SENG	19689.21	-476.63
		-2.36%
SENSEX	58136.36	+20.86
		+0.04%
FTSE 100*	7409.11	-4.31 -0.06%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.711	2.610
CND. 30 Year Bond	2.832	2.774
U.S.    10 Year Bond	2.7483	2.6559
U.S. 30 Year Bond	3.0065	3.0105

Currencies

BOC Close	Today	Previous
Canadian $	0.7766	0.7813
US $	1.2876	1.2799
Euro Rate 1 Euro=		Inverse
Canadian $	1.3095	0.7637
US $	1.0170	0.9833

Commodities

Gold	Close	Previous
London Gold Fix	1772.40	1753.50
Oil
WTI Crude Future	94.42	98.62

Market Commentary:
If you destroy a free market you create a black market.  If you have ten thousand regulations you destroy all respect for the law. –Winston Churchill, 1874-1965.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1% at 19,505.33 in Toronto.
The move was the biggest since falling 1.5% on July 14 and follows the previous session’s increase of 1.2%.
TC Energy Corp. contributed the most to the index decline,  decreasing 3.4%.
First Quantum Minerals Ltd. had the largest drop, falling 8.3%.
Today, 176 of 238 shares fell, while 61 rose; 8 of 11 sectors were lower, led by energy stocks.
Insights
* The index declined 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 8.9% in the same period
* The S&P/TSX Composite is 12.2% below its 52-week high on April 5, 2022 and 7.3% above its low on July 14, 2022
* The S&P/TSX Composite is up 2.1% in the past 5 days and rose 3.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.8 on a trailing basis and 12 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.15t
* 30-day price volatility fell to 17.12% compared with 17.23% in the previous session and the average of 19.26% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -70.8273| -1.9| 7/31
* Materials | -50.0148| -2.3| 12/39
* Financials | -45.8625| -0.7| 6/23
* Industrials | -21.1270| -0.8| 8/21
* Communication Services | -11.4798| -1.2| 0/7
* Real Estate | -9.0614| -1.7| 4/19
* Consumer Staples | -2.8995| -0.4| 1/10
* Consumer Discretionary | -0.1668| 0.0| 5/8
* Utilities | 0.0617| 0.0| 6/9
* Health Care | 1.9882| 2.9| 5/2
* Information Technology | 21.8032| 2.0| 7/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* TC Energy | -15.4800| -3.4| -21.7| 12.2
* Nutrien | -14.7800| -3.6| -3.2| 11.2
* Enbridge | -12.2900| -1.5| 230.6| 14.6
* National Bank of Canada | 1.7620| 0.9| -28.2| -6.0
* Restaurant Brands | 4.1280| 2.8| -26.8| -8.0
* Shopify | 31.4000| 8.9| 26.7| -72.1
US
By Emily Graffeo and Natalia Kniazhevich
(Bloomberg) — US Treasuries sank and stocks dropped after Federal Reserve officials signaled the central bank is still intent on raising rates until inflation is under control.
Treasury yields rose across the curve, with 10-year rates climbing as much as 20 basis points to 2.77%.
The yen, which was on track for its fifth daily gain, fell as the dollar snapped four days of losses amid a sudden turnaround in risk sentiment.
The S&P 500 dropped for the second straight day as Nancy Pelosi’s arrival in Taiwan prompted China to announce missile tests, even as she said her visit did not alter longstanding US policy in the region.
The Nasdaq 100 also ended the day down.
Both indexes swung between gains and losses throughout the session as markets remained on edge with geopolitical tensions simmering and commentary from Fed officials making it apparent that a policy pivot was less likely.
Stocks started August on the back foot after posting their best month since 2020 in July.
Investors have been keeping an eye out for hawkish comments from Fed officials about the need for higher rates to restrain elevated inflation.
While San Francisco Fed President Mary Daly said on Tuesday that the Fed is “nowhere near” done with its efforts to tamp down on inflation, Chicago Fed President Charles Evans said he expects the pace of rate hikes will start to slow later in the year.
“The Fed is not likely to announce they’re letting up on the brakes at this point,” said Ellen Gaske, economist at PGIM Fixed Income. “They are still seeing inflation numbers that have not started to recede.”
Cleavland Fed President Loretta Mester echoed this, saying that she wants to see “very compelling evidence” that month-to-month price increases are moderating before declaring that central bank has been successful in curbing inflation.
Corporate earnings also continued to roll in, impacting stocks.
Caterpillar Inc. slumped after a slowdown in China weakened its business.
That weighed on the Dow Jones Industrial Average, which was lower for the day.
Shares of Uber Technologies Inc. soared as much as 18% after the firm reported second-quarter revenue that beat the average analyst estimate.
Fresh economic data kept investors on their toes.
Recent data showed that US job openings in June fell to a nine-month low, a sign of moderating demand for labor as economic pressures mount.
The job market has been a bright spot in an economy otherwise losing momentum and possibly heading toward a recession.
Goldman Sachs Group Inc. strategists led by Cecilia Mariotti said it was too soon for stock markets to fade the risks of a recession on expectations of a pivot in the Fed’s hawkish policy.
JPMorgan Chase & Co. strategists, on the other hand, said the outlook for US stocks is improving for the second half of the year on attractive valuations.
Pelosi’s trip has created a fresh pressure point for investors already dealing with the prospects of a US recession, worldwide rate hikes and inflation that risks becoming entrenched as Russia’s war in Ukraine exacerbates food
shortages.
“The Taiwan story fits into the broader risk-off theme,” said Mark McCormick, global head of FX strategy at TD Securities. “It raises concerns about global growth issues, especially if geopolitical tensions and knock-effects exacerbate
inflationary concerns. In turn, that forces central banks to keep fighting inflation in spite of the clear deceleration of global growth.”
This week’s MLIV Pulse survey is asking about your outlook for corporate bonds, mergers and acquisitions and health of US corporate balance sheets through the end of the year.
It takes one minute to participate in the MLIV Pulse survey, so please click here to get involved anonymously. 
What to watch this week:
* St. Louis Fed President James Bullard is due to speak, Tuesday
* OPEC+ meeting on output, Wednesday
* US factory orders, durable goods, ISM services, Wednesday
* BOE rate decision, Thursday
* US initial jobless claims, trade, Thursday
* Cleveland Fed President Loretta Mester due to speak, Thursday
* US employment report for July, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4:01 p.m. New York time
* The Nasdaq 100 fell 0.3%
* The Dow Jones Industrial Average fell 1.2%
* The MSCI World index rose 0.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.8%
* The euro fell 0.9% to $1.0170
* The British pound fell 0.7% to $1.2168
* The Japanese yen fell 1.1% to 133.09 per dollar
Bonds
* The yield on 10-year Treasuries advanced 19 basis points to 2.76%
* Germany’s 10-year yield advanced four basis points to 0.82%
* Britain’s 10-year yield advanced six basis points to 1.87%
Commodities
* West Texas Intermediate crude rose 0.4% to $94.27 a barrel
* Gold futures fell 0.5% to $1,778.70 an ounce
–With assistance from Vildana Hajric, Isabelle Lee, Michael Msika, Jordan Yadoo and Cecile Gutscher.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

The cautious seldom err or write good poetry.
                  –Message in a fortune cookie at a Chinese Restaurant (given to Howard Marks).

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday.
Oslok: Commemorates Viking King Olaf, Norway.

On this day in 2016, Hillary Clinton accepted the Democratic nomination for US President – the first woman for a major party.
July 29, 1958: NASA established.
July 29, 1914: Transcontinental telephone service began with the first phone conversation between New York and San Francisco. Go to article »

Reporter loses tooth on live TV: Give this reporter a trophy for handling the awkward incident so well… actually, a plaque would be even better. Watch the funny moment here.

Biden’s granddaughter announces White House wedding ceremony.  Not many people can say they got married on the South Lawn! Meet the lovely couple and learn more about their nuptial plans.

Two meteor showers will light up the night sky this weekend.  This one is for the night sky watchers. You may have a chance to catch a beautiful sight this weekend. Here’s how to watch.

Strange ‘alien’ holes discovered on the ocean floor: Explorers have discovered a series of mysterious, “perfectly aligned” holes punched into the seafloor roughly 1.6 miles (2.6 kilometers) beneath the ocean surface, and they have no idea who or what made them.  The strange holes were spotted by the crew of the National Oceanic and Atmospheric Administration’s (NOAA) Okeanos Explorer vessel as they investigated the Mid-Atlantic Ridge — a mostly unexplored region of the seafloor that is part of the world’s largest mountain range.  Full Story: Live Science (7/29) 

‘Never seen anything like it’: Impeccably preserved Jurassic fish fossils found on UK farm: A farm in England was the unlikely source of a Jurassic jackpot: a treasure trove of 183 million-year-old fossils.
On the outskirts of Gloucestershire in the Cotswolds, beneath soil that is currently trampled under the hooves of grazing cattle, researchers recently uncovered the fossilized remains of fish, giant marine reptiles called ichthyosaurs, squids, insects and other ancient animals dating to the early part of the Jurassic period (201.3 million to 145 million years ago).  Full Story: Live Science (7/29) 
PHOTOS OF THE DAY

A man stands in a cave at the Sardona glacier in Vaettis. The melting glacier revealed this cave.
CREDIT: Gian Ehrenzeller/AP

Ballet dancers perform during the Eyes Wide Shut show in Kyiv.
CREDIT: Alexey Furman/Getty Images

Flames engulf a chair inside a burning home as the Oak fire spreads in Mariposa county. Firefighters battling the explosive blaze near Yosemite national park significantly slowed the spread of the flames, but thousands of residents remained under evacuation, while smoke drifted to reach Lake Tahoe, parts of Nevada and the San Francisco Bay area.
CREDIT: Noah Berger/AP
Market Closes for July 29^th, 2022

Market Index	Close	Change
Dow Jones	32845.13	+315.50
		+0.97%
S&P 500	4130.29	+57.86
		+1.42%
NASDAQ	12390.69	+228.10 +1.88%
TSX	19692.92	+236.21
		+1.21%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27801.64	-13.84
		-0.05%
HANG SENG	20156.51	-466.17
		-2.26%
SENSEX	57570.25	+712.46
		+1.25%
FTSE 100*	7423.43	+78.18 +1.06%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.610	2.610
CND. 30 Year Bond	2.774	2.754
U.S.    10 Year Bond	2.6559	2.6759
U.S. 30 Year Bond	3.0105	3.0227

Currencies

BOC Close	Today	Previous
Canadian $	0.7813	0.7806
US $	1.2799	1.2811
Euro Rate 1 Euro=		Inverse
Canadian $	1.3089	0.7640
US $	1.0227	0.9778

Commodities

Gold	Close	Previous
London Gold Fix	1753.50	1714.05
Oil
WTI Crude Future	98.62	96.42

Market Commentary:
On this day in 1869, the New York Stock Exchange was formed from the merger of the New York Stock & Exchange Board with the Open Board and the Government Board (where Treasury bonds were traded).
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian equities gained in a broad rally after data showed that the Bank of Canada’s rate-hike campaign is proving effective in curbing inflation. The S&P/TSX Composite rose for the third day, climbing 1.2%, or 236.21 to 19,692.92 in Toronto.
The index closed at the highest level since mid-June, rising more than 4% July in its biggest monthly gain since October.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 3.5%. Capstone Copper Corp. had the largest percentage increase, rising 12.0%. Today, 196 of 238 shares rose, while 40 fell; 10 of 11 sectors were higher, led by financials stocks.
Terminal users can read more in our markets live blog.
Insights
* In the past year, the index had a similar or greater gain 18 times. The next day, it advanced 11 times for an average 0.7% and declined seven times for an average 1.2%
* This month, the index rose 4.4%, heading for the biggest advance since October 2021
* So far this week, the index rose 3.7%, heading for the biggest advance since the week ended Feb. 5
* The index declined 3% in the past 52 weeks. The MSCI AC Americas Index lost 8.7% in the same period
* The S&P/TSX Composite is 11.3% below its 52-week high on April 5, 2022 and 8.4% above its low on July 14, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.9 on a trailing basis and 12.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.12t
* 30-day price volatility rose to 17.23% compared with 16.97% in the previous session and the average of 19.36% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 67.2401| 1.1| 28/1
* Energy | 58.1192| 1.6| 33/5
* Materials | 50.8838| 2.4| 42/8
* Industrials | 41.0447| 1.7| 22/7
* Real Estate | 6.9358| 1.3| 23/0
* Consumer Discretionary | 4.6357| 0.7| 10/3
* Utilities | 3.7917| 0.4| 12/4
* Information Technology | 2.9749| 0.3| 11/3
* Communication Services | 2.5983| 0.3| 4/2
* Health Care | 1.4867| 2.2| 5/2
* Consumer Staples | -3.5036| -0.4| 6/5
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Canadian Natural Resources | 18.9300| 3.5| -50.3| 32.3
* Suncor Energy | 15.2900| 3.8| -23.0| 37.3
* TD Bank | 13.9100| 1.4| -56.9| -14.2
* Loblaw | -3.4970| -2.6| 65.4| 12.5
* TC Energy | -7.7060| -1.6| -37.0| 16.0
* Shopify | -11.3300| -3.1| 33.8| -74.4
US
By Rita Nazareth
(Bloomberg) — The stock market is wrapping up a chaotic week, with solid earnings from tech mega caps bringing solace to traders worried about the many cross-currents rattling economies around the globe.
After a horrific first half, the S&P 500 notched its best month since November 2020, while the Nasdaq 100 had its strongest monthly performance since April of that same year.
Big tech led gains on Friday, with Amazon.com Inc. and Apple Inc. soaring as higher revenues from the pair of iconic powerhouses countered fears about profit slowdown at time when the industry is rethinking its staffing needs.
Despite worrisome signals from economic proxies like Walmart Inc. and United Parcel Service Inc., the earnings season as a whole has turned out to be brighter than expected, with about 75% of the S&P 500 firms that have reported results beating analyst estimates. That’s fueling speculation that Corporate America will be able to weather the perfect storm of hot inflation, jumbo-sized rate hikes and dwindling growth.
Bloomberg Intelligence’s fair-value model suggests a modest recession may have been priced in following this year’s stock- market selloff. That means a price recovery could emerge with an earnings trough in the second half of 2022.
“The fact that earnings are not as bad as feared is a very constructive thing for the markets,” said Anastasia Amoroso, chief investment strategist at iCapital. “The fact that we have priced in a whole lot of slowdown already, that too has just de- risked the landscape. And so I think what can happen for the next couple of weeks is that the technical momentum really keeps moving stocks higher while we wait for the next Fed move or the next inflation print.”
Two key US price gauges posted larger-than-forecast increases, with the personal consumption expenditures index — which forms the basis for the Federal Reserve’s inflation target – climbing at the fastest pace since 2005.
Consumers’ long-term inflation expectations also remained elevated. Swaps showed traders increased bets on a 75-basis-point hike in September, though they continued to wager that a 50-basis-point hike was the most likely outcome. 
Fed Bank of Atlanta President Raphael Bostic noted the US economy was “a ways” from entering a recession and officials have further to go in raising rates to get prices under control. Fed Governor Christopher Waller pushed back against economists Olivier Blanchard and Lawrence Summers, who said the central bank’s assertion that it can cool off labor demand without much impact on the unemployment rate “flies in the face” of evidence.
Despite the big rebound in stocks this month, several market watchers are skeptical about a sustained rally due to the many economic challenges and the fact that the market hasn’t gotten cheap enough to call it a bottom. “This is a rally within a bear market rather than the start of a new bull market,” said David Donabedian, chief investment officer of CIBC Private Wealth US. “We would expect a lower P/E ratio if we were at the bottom of the market.
While the equity market has partially recovered, we expect it will retest the lows we saw in June.” Donabedian says optimism about the Fed potentially wrapping up its tightening cycle earlier than expected is “more hope than reality”. He sees further rate hikes and says there’s still a lot of work ahead to bring down inflation while adding that “a slowing job market is on the way.”
In other corporate news, Intel Corp., the biggest maker of computer processors, slashed forecasts for the year. Roku Inc., the maker of streaming-TV devices, said advertisers are pulling back on spending due to economic concerns. Exxon Mobil Corp. and Chevron Corp. posted their highest-ever profits, reaping the rewards from surging commodity prices. Procter & Gamble Co.’s forecasts growth lagged estimates.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.8%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 1.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.0221
* The British pound was little changed at $1.2177
* The Japanese yen rose 0.7% to 133.36 per dollar
Bonds
* The yield on 10-year Treasuries declined one basis point to
2.66%
* Germany’s 10-year yield declined one basis point to 0.82%
* Britain’s 10-year yield was little changed at 1.86%
Commodities
* West Texas Intermediate crude rose 1.7% to $98.10 a barrel
* Gold futures rose 0.5% to $1,778.90 an ounce
–With assistance from Sunil Jagtiani, Abigail Moses, Vildana
Hajric, Emily Graffeo, Isabelle Lee, Michael Msika and Edward
Bolingbroke.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Divide each difficulty into as many parts as feasible and necessary to resolve it. –Rene Descartes, 1596-1650.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday Eve.
JULY 28, 1932: The first feature-length zombie film, White Zombie inspired bythe book and by a stage play called Zombie is released in New York City; it starred Bela Lugosi.
On July 28, 1914, Austria-Hungary declared war on Serbia. World War I began as declarations of war by other European nations quickly followed. Go to article »

Notre Dame is being restored. Again.

Area man wakes up after night on sleeper train only to find it never left the station.

Mystery behind medieval ‘bed burials’ in UK possibly solved:  On rare occasions in medieval mainland Europe, the cream of the crop — those who were wealthy or noble — were sometimes buried as if they were going to sleep, interred on their beds in what is known as a bed burial. However, it was unclear how this practice spread to England.  Now, new research reveals that bed burials gained traction in the seventh century A.D. along with the spread of Christianity and soon became a common burial rite for women.  Full Story: Live Science (7/28) 

Miners just discovered the largest pink diamond in more than 300 years: Miners in Angola have uncovered a massive pink diamond that may be the biggest gem of its kind found in the past 300 years.  The pink diamond is estimated to weigh 170 carats, making it just a smidge smaller than the 182-carat Daria-i-Noor diamond — the largest pink diamond in the world, which today is part of the Iranian National Jewels.  Full Story: Live Science (7/28) 

Who invented chess?   Chess is one of the world’s most popular and beloved games. The United Nations estimates that close to 605 million people around the globe — or about 8% of the world population — play it regularly.  While some games slide into obscurity after spending a few years on store shelves, chess has survived the test of time. The game also got a boost from the 2020 Netflix series “The Queen’s Gambit,” with around 62 million accounts watching the show within its first four weeks. This led to a chess-buying boom, with eBay seeing a 215% increase in chess set sales in the weeks after the show was released.  Chess has been around far longer than any person alive today. But where did the game originate, and how old is it?  Full Story: Live Science (7/27)

How much have America’s richest lost this year? This much.
PHOTOS OF THE DAY

Rhi Davies plays around with her reflection inside a mirrored structure as final preparations are made for the opening of what is billed as the world’s first ‘amazement park’, Wake the Tiger
CREDIT:  Ben Birchall/PA

Fireworks light up the night sky during the Celebration of Light
CREDIT: Andrew Chin/Getty Images

A guard of honour stands in the rain during a celebration to mark King Maha Vajiralongkorn’s 70th birthday
CREDIT: Soe Zeya Tun/Reuters
Market Closes for July 28^th, 2022

Market Index	Close	Change
Dow Jones	32529.63	+332.04
		+1.03%
S&P 500	4072.43	+48.82
		+1.21%
NASDAQ	12162.59	+130.17 +1.08%
TSX	19456.71	+202.15
		+1.05%

 

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	27815.48	+99.73
		+0.36%
HANG SENG	20622.68	-47.36
		-0.23%
SENSEX	56857.79	+1041.47
		+1.87%
FTSE 100*	7345.25	-2.98 -0.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.610	2.764
CND. 30 Year Bond	2.754	2.837
U.S.    10 Year Bond	2.6759	2.7849
U.S. 30 Year Bond	3.0227	3.0653

Currencies

BOC Close	Today	Previous
Canadian $	0.7806	0.7796
US $	1.2811	1.2826
Euro Rate 1 Euro=		Inverse
Canadian $	1.3059	0.7657
US $	1.0194	0.9810

Commodities

Gold	Close	Previous
London Gold Fix	1714.05	1720.05
Oil
WTI Crude Future	96.42	97.26

Market Commentary:
On this day in 1971, Wells Fargo launched the world’s first stock-index fund with $6 million from the pension fund of Samsonite. The trader executing the orders for the new fund immediately acquired the sarcastic nickname “Discount Diane.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 1%, or 202.15 to 19,456.71 in Toronto.
The index advanced to the highest closing level since June 15.
Royal Bank of Canada contributed the most to the index gain, increasing 0.9%.
Ballard Power Systems Inc. had the largest increase, rising 13.8%.
Today, 203 of 238 shares rose, while 33 fell; 10 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index rose 3.2%
* So far this week, the index rose 2.5%
* The index declined 3.8% in the past 52 weeks. The MSCI AC Americas Index lost 9.6% in the same period
* The S&P/TSX Composite is 12.4% below its 52-week high on April 5, 2022 and 7.1% above its low on July 14, 2022
* The S&P/TSX Composite is up 2.1% in the past 5 days and rose 1.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15 on a trailing basis and 12 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.09t
* 30-day price volatility fell to 16.97% compared with 19.24% in the previous session and the average of 19.47% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 37.8147| 1.1| 32/6
* Financials | 37.3499| 0.6| 24/4
* Industrials | 33.6170| 1.4| 26/3
* Materials | 32.9958| 1.6| 42/9
* Consumer Staples | 16.6936| 2.1| 10/1
* Information Technology | 14.5012| 1.3| 13/1
* Consumer Discretionary | 11.4126| 1.7| 10/2
* Utilities | 11.3573| 1.1| 14/2
* Real Estate | 8.6363| 1.6| 23/0
* Communication Services | 6.6586| 0.7| 3/4
* Health Care | -8.8847| -11.8| 6/1
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Royal Bank of Canada | 10.7400| 0.9| -4.5| -7.8
* Brookfield Asset Management | 10.2700| 1.6| 31.7| -17.5
* Agnico Eagle Mines | 10.1400| 6.4| 45.2| -19.8
* TD Bank | -4.6380| -0.5| -41.5| -15.4
* TC Energy | -7.5030| -1.6| -9.5| 18.0
* Bausch Health | -11.3800| -50.6| 185.3| -84.3
US
By Rita Nazareth
(Bloomberg) — The stock rally gained traction, defying calls from skeptics in the aftermath of the Federal Reserve decision, with traders paring bets on rate hikes as the drumbeat of recession grew louder amid an ugly economic print.
Equities climbed to a seven-week high, led by defensive groups, which are often sought after during challenging times.
Tech underperformed before Apple Inc. and Amazon.com Inc.’s results.
Bond yields sank, and swaps referencing policy meeting dates showed bets the fed funds rate will peak around 3.25% before the end of 2022, less than 100 basis points above its current level.
Investors continued to embrace the idea the Fed could soon reduce the pace of tightening as data signaled the economy is losing momentum heading into the back half of the year.
That was a day after Jerome Powell’s remarks that hikes would slow at some point, which sparked a powerful market reaction that was bashed by Fed watchers saying traders got it all wrong as tighter financial conditions are needed to vanquish inflation.
“Bad news is becoming good news,” said Michael Arone, chief investment strategist at State Street Global Advisors. “When the economy is slowing, inflation measures will likely fall. That will bring the end of the tightening cycle nearer and markets will like that.”
For LPL Financial’s Jeffrey Roach, the Fed will likely interpret the drop in real growth as confirmation to slow down the pace of tightening. “Front-loading rate hikes eventually mean smaller hikes in the near future,” he added.
FHN Financial’s Chris Low said that based on Powell’s comments Wednesday, officials will not stop hiking just because the economy is shrinking.
“They need to see real progress against inflation before they stop raising rates,” Low noted. “With that in mind, this recession will get deeper before the economy starts to heal.”
Corporate Highlights:
* Honeywell International Inc.’s profit topped estimates as a rebound in air travel and oil-and-gas investment helped spur sales.
* Hertz Global Holdings Inc. soared as the rental-car giant’s earnings beat estimates with revenue jumping on higher prices and rebound in travel.
* Harley-Davidson Inc. gained as profit and revenue beat estimates, a sign that a turnaround plan is helping the motorcycle maker overcome supply-chain headaches.
* Comcast Corp. sank after its prized internet business added no new customers last quarter, its worst performance in decades.
* Southwest Airlines Co. said it’s facing high costs and delays in aircraft deliveries from Boeing Co., tarnishing a quarter in which the carrier topped Wall Street’s profit expectations.

Here are some key events to watch this week:
* Euro-area CPI, Friday
* US PCE deflator, personal income, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.9%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 1.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro fell 0.1% to $1.0186
* The British pound was little changed at $1.2166
* The Japanese yen rose 1.7% to 134.29 per dollar
Bonds
* The yield on 10-year Treasuries declined 11 basis points to 2.67%
* Germany’s 10-year yield declined 12 basis points to 0.83%
* Britain’s 10-year yield declined nine basis points to 1.87%
Commodities
* West Texas Intermediate crude fell 0.1% to $97.12 a barrel
* Gold futures rose 2% to $1,772 an ounce
–With assistance from Andreea Papuc, Sunil Jagtiani, Abigail Moses, Cecile Gutscher, Vildana Hajric, Peyton Forte, Natalia Kniazhevich and Isabelle Lee.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

It is the wounded oyster that mends its shell with pearl. -Ralph Waldo Emerson,  1803-1882.

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
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