Category: Newsletters

Dear Friends,

Tangents: On Jan. 31, 1865, the House of Representatives passed a constitutional amendment to abolish slavery.  Congress passes, by vote of 121-24, the 13th Amendment of the US Constitution, abolishing slavery in the US.  Go to article >>   Explorer I Space Satellite launched 1958. Franz Schubert, composer, b. 1797. Kate Hudson pivots from acting to a new career in music The Oscar-nominated actress released her debut single, “Talk About Love.” Listen to a clip here. Astronomers discover strange new type of star hidden in the center of our galaxy These giant stars located near the heart of the Milky Way galaxy are being referred to as “old smokers.” Bob Odenkirk better call King Charles. As it turns out, they are related The star of the hit show “Better Call Saul” was royally amused to find out he has a famous relative. FDA updates its oversight on cosmetic products The FDA is once again assessing the use of “forever chemicals” in cosmetics. Learn how some widely used chemicals can linger in the human body.  A man’s cold weather experiments go viral A Canadian man is using the cold temperatures to create odd frozen things! Watch the video here. Nearly 400 ancient medical tools from Turkey hint at rare Roman doctors’ offices Medical instruments dating to the Roman era may be evidence of a “group practice” run by health care workers.  Full Story: Live Science (1/29). ‘Mind-blowing’ James Webb telescope images reveal 19 spiral galaxies in the greatest detail ever seen New images from the James Webb telescope images show Milky Way-like spiral galaxies in more intricate detail than has ever been seen before. Read More. 1 of Sweden’s oldest stone tombs is mysteriously missing skulls A 5,500-year-old Neolithic tomb in Sweden contains the remains of at least 12 people, but many of their skulls and long bones are missing. Read More. PHOTOS OF THE DAY Shetland, Scotland Members of the Up Helly Aa Jarl Squad set fire to a ship during a parade through the streets in Lerwick. The festival celebrates the influence of the Scandinavian Vikings Photograph: Andy Buchanan/AFP/Getty Images London, UK Visitors at the opening night of LIFE, an immersive light and sound experience created by the British installation artist Peter Walker, at St Martin-in-the-Fields church Photograph: Henry Nicholls/AFP/Getty Images Sharaan, Saudi Arabia The peloton passing through a rocky landscape during the 4th Alula Tour 2024, from Alula winter park to Sharaan nature reserve Photograph: Alex Broadway/Getty Images Market Closes for January 31st, 2024 Market Index  Close  Change  Dow Jones 38150.30 -317.01 -0.82% S&P 500  4845.65 -79.32 -1.61% NASDAQ  15164.01   -345.89 -2.23% TSX  21021.88 -205.99 -0.97% International Markets Market Index  Close  Change  NIKKEI  36073.95 -212.76 -0.59% HANG SENG 15485.07 -218.38 -1.39% SENSEX  71752.11   +612.21 +0.86% FTSE 100* 7630.57 -35.74 -0.47% Bonds Bonds  % Yield  Previous % Yield CND. 10 Year Bond  3.322 3.408 CND. 30 Year Bond  3.255 3.326 U.S.    10 Year Bond 3.9312 4.0357 U.S. 30 Year Bond 4.1773 4.2565 Currencies BOC Close  Today  Previous   Canadian $   0.7449 0.7460 US $    1.3425 1.3404 Euro Rate 1 Euro=  Inverse    Canadian $   1.4516 0.6889 US $    1.0813 0.9248 Commodities Gold Close  Previous   London Gold Fix  2043.05 2022.50 Oil WTI Crude Future  75.85 77.82 Market Commentary: 📈 On this day in 1940, the first monthly Social Security check was issued to Ida May Fuller, a retired legal secretary in Ludlow, Vt. Fuller had paid $24.75 in Social Security taxes in the previous three years—and by her death in 1975, had collected $22,888.92 in benefits. Canada By Bloomberg Automation (Bloomberg) — The S&P/TSX Composite fell 1% at 21,021.88 in Toronto. The move was the biggest since falling 1.2% on Jan. 17 and follows the previous session’s increase of 0.1%. Shopify Inc. contributed the most to the index decline, decreasing 2.5%. Lithium Americas Argentina Corp. had the largest drop, falling 6.4%. Today, 187 of 225 shares fell, while 37 rose; all sectors were lower, led by financials stocks. Insights * This month, the index rose 0.3% * The index advanced 1.2% in the past 52 weeks. The MSCI AC Americas Index gained 18% in the same period * The S&P/TSX Composite is at its 52-week high and 12.5% above its low on Oct. 27, 2023 * The S&P/TSX Composite is unchanged in the past 5 days and rose 0.3% in the past 30 days * S&P/TSX Composite is trading at a price-to-earnings ratio of 16.7 on a trailing basis and 15.5 times estimated earnings of its members for the coming year * The index’s dividend yield is 3.2% on a trailing 12-month basis * S&P/TSX Composite’s members have a total market capitalization of C$3.36t * 30-day price volatility rose to 9.23% compared with 8.71% in the previous session and the average of 10.64% over the past month ================================================================ | Index Points | | Sector Name | Move | % Change | Adv/Dec ================================================================ Financials | -72.5280| -1.1| 5/22 Energy | -35.6358| -1.0| 3/38 Information Technology | -33.7988| -1.7| 2/8 Materials | -19.5981| -0.9| 10/41 Utilities | -10.0861| -1.2| 2/13 Consumer Staples | -9.0363| -1.0| 3/8 Consumer Discretionary | -7.0516| -0.9| 1/12 Communication Services | -6.4387| -0.8| 1/4 Industrials | -6.3074| -0.2| 5/21 Real Estate | -4.2031| -0.8| 4/17 Health Care | -1.3014| -2.1| 1/3 ================================================================ | | |Volume VS| YTD |Index Points | | 20D AVG | Change Top Contributors | Move | % Change | (%) | (%) ================================================================ Shopify | -22.7500| -2.5| 36.4| 4.3 RBC | -18.4400| -1.4| -43.5| -2.1 Brookfield Corp | -15.2000| -2.8| 16.0| 0.4 Celestica | 1.5780| 4.3| 209.8| 19.1 CGI Inc | 1.9870| 0.9| 213.4| 6.1 Canadian Pacific Kansas | 11.8600| 1.7| 121.2| 3.2 US By Rita Nazareth (Bloomberg) — Stocks saw their biggest decline since September after Jerome Powell said the Federal Reserve wants to keep its options open instead of rushing to cut interest rates. Speaking after the January Fed decision, Powell said he doesn’t think it’s likely the central bank will ease policy in March. In a sign that officials are not in a hurry to lower rates, the central bank also said it “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.” “If stock bulls expected a rate cut in March, Powell seems to have closed the door on that,” said Oscar Munoz at TD Securities. The S&P 500 fell 1.6%. Losses were led by big tech — the group that has powered the bull-market run. Microsoft Corp. and Alphabet Inc. slumped after disappointing investors betting that an artificial-intelligence bonanza would quickly fuel results. After the close, Qualcomm Inc. gave a revenue forecast that was in line with estimates. Treasuries remained higher as fresh concerns about regional lenders added to economic worries after New York Community Bancorp’s surprise loss. More Comments on Fed: * Alan Ruskin at Deutsche Bank:  “Phewww we got there in the end. Powell made everyone sweat, but it is pretty clear now where the Fed stands on March.” * Neil Dutta at Renaissance Macro Research:  “Oh brother. What exactly does ‘greater confidence’ mean?  Just feels like a bunch of nonsense to get the hawks to come to a consensus.” * Greg McBride at Bankrate:  “The Federal Reserve is getting closer to the first interest rate cut, but we’re not there yet. Inflation has come down faster than anticipated, but whether or not this can be sustained is central to the Fed’s decision about when to begin cutting interest rates. The Fed is certainly pushing back on the notion of a March interest rate cut, dashing investors’ hopes again, but keeping options open and remaining non-committal as a central bank does.”  “Interest rates took the elevator going up — but are going to take the stairs coming down.” * Whitney Watson at Goldman Sachs Asset Management:  “With steady economic growth, it is expected that policymakers will wait for more evidence of a sustained downtrend in inflation before making any changes. For investors, now is the time to secure attractive yields on high-quality bonds to earn attractive income and position for rate relief as central bank policy rates look set to end the year lower for the first time in two years.” * Chris Zaccarelli at Independent Advisor Alliance:  “The Fed today officially acknowledged that they would like to lower rates in the near future, but have not yet given an indication of how soon they will begin the rate cutting process.  Given that the Fed is planning to be higher for longer – but it’s not a matter of if, but when, they will be cutting rates – we believe the path of the stock market is higher. Ultimately, a recession or collapse in corporate earnings could derail the market, but in the absence of that, the path of least resistance is higher.” * Chris Larkin at E*Trade from Morgan Stanley:  “Although the Fed softened some of its hawkish language, they also suggested it wasn’t yet clear that inflation was entirely under control. As usual, they said they’d let the economic data dictate their course. For a while, the debate has been whether the market is too optimistic about a March rate cut. Inflation has been a little stickier than expected lately, and the labor market has mostly continued to surprise to the upside.” Data Wednesday showed a broad gauge of US labor costs cooled by more than forecast in a fresh sign of easing inflation pressures that give Fed officials room to cut interest rates this year. A separate report from the ADP Research Institute showed companies added a smaller-than-expected 107,000 jobs in January, and worker pay growth slowed. The market has been too quick to dismiss the threat posed by inflation after a “miraculous” decline toward central bank targets, said Greg Peters at PGIM Fixed Income. He’s worried that the hardest part of the fight against inflation is still ahead, implying plenty more market volatility and a potential wake-up call for bondholders betting on deep interest-rate cuts this year. To Mark Hackett at Nationwide, the market is at critical crossroads as the strong momentum experienced since October is balanced against elevated expectations and sluggish earnings results. Despite Wednesday’s losses, the S&P 500 capped its third straight monthly advance. As goes January, so goes the year. That’s the theory of a phenomenon known as the “January Barometer” — Wall Street folklore positing that if stocks rise in January, they’ll be poised to finish the year higher, and vice versa. Since 1938, the January Barometer has been right about 74% of the time, with the next 11 months higher 67% of the time, according to the Stock Trader’s Almanac. One of Wall Street’s most prominent bears is now expecting gains in the US equity market to broaden into less loved corners than the big tech companies that have dominated the rally so far. Morgan Stanley’s Mike Wilson, who stuck with his prediction of a stock market decline last year while the S&P 500 Index surged 24%, sees opportunities in names outside the so-called Magnificent 7 companies that have powered equity gains through much of 2023. He’s urging investors to buy high-quality, growth names that can generate pricing power. “In the stock world, I think once again, it’s going to be idiosyncratic — I don’t think it’s going to be as narrow as last year,” Wilson said Tuesday afternoon at the iConnections Global Alts conference in Miami Beach. “The big index is full, it’s priced. For all intents and purposes, the value is not there.  The value is underneath the market.” Meantime, the US Treasury boosted the size of its quarterly issuance of longer-term debt for a third straight time, and suggested that no more increases are likely until next year. Relief from further boosts to auction sizes for longer-term securities may help support demand for Treasuries. Investors for several months now have been particularly sensitive to news on the overall supply of federal debt, at a time when the Fed has been steadily shrinking its own holdings of US securities. “The February refunding came as a relief for markets as Treasury suggested the end of auction size increases starting in May,” said Gennadiy Goldberg at TD Securities. “However, there will be lots of duration supply hitting the market this year and Treasuries may continue to come under some pressure if economic data remains strong.” Corporate Highlights * Boeing Co. declined to issue a financial forecast for 2024, breaking a tradition of providing guidance as it deals with a string of quality slips that culminated in a near-catastrophic panel blowout on a 737 Max. * Mastercard Inc.’s fourth-quarter earnings beat analysts’ forecasts even as operating expenses grew more than analysts expected. * Biogen Inc. will stop studying and selling the controversial Alzheimer’s drug Aduhelm, capping years of debate over its efficacy and disappointment as it failed to meet commercial expectations. * Health insurer Cigna Group agreed to sell its Medicare business to Health Care Service Corp. for $3.3 billion, the companies announced in a statement Wednesday. * Saudi Arabia is considering plans to revive a follow-on offering in Aramco as soon as February, in a multibillion-dollar deal that’s likely to rank among the biggest share sales in recent years, according to people familiar with the matter. Key events this week:  * China Caixin manufacturing PMI, Thursday * Eurozone S&P Global Manufacturing PMI, CPI, unemployment, Thursday * US productivity, construction spending, ISM Manufacturing, initial jobless claims, Thursday * Apple, Amazon, Meta, Deutsche Bank, BNP Paribas earnings, Thursday * Bank of England interest rate decision, Thursday * US employment report, University of Michigan consumer sentiment, factory orders, Friday Some of the main moves in markets: Stocks * The S&P 500 fell 1.6% as of 4 p.m. New York time * The Nasdaq 100 fell 1.9% * The Dow Jones Industrial Average fell 0.8% * The MSCI World index fell 1.1% Currencies * The Bloomberg Dollar Spot Index rose 0.2% * The euro fell 0.4% to $1.0807 * The British pound fell 0.2% to $1.2674 * The Japanese yen rose 0.3% to 147.16 per dollar Cryptocurrencies * Bitcoin fell 2.3% to $42,540.76 * Ether fell 3.9% to $2,287.38 Bonds * The yield on 10-year Treasuries declined nine basis points to 3.94% * Germany’s 10-year yield declined 10 basis points to 2.17% * Britain’s 10-year yield declined 11 basis points to 3.79% Commodities * West Texas Intermediate crude fell 2.6% to $75.76 a barrel * Spot gold fell 0.1% to $2,034.33 an ounce This story was produced with the assistance of Bloomberg Automation. –With assistance from Jessica Menton, Emily Graffeo, Jackie Davalos, Ian King and Isabelle Lee. Have a lovely evening. Be magnificent! As ever, Carolann You have power over your mind – not outside events.  Realize this, and you will find strength.  -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:  January 30th, 1948: Mahatma Gandhi assassinated. January 30, 1968: The Tet offensive began as Communist forces launched surprise attacks against South Vietnamese provincial capitals.  Go to article >> January 30th, 1972: Bloody Sunday, Northern Ireland. 1975: Erno Rubik applies for a  patent for his “Magic Cube” invention, later to be known as a Rubik’s cube. Franklin D. Roosevelt, b. 1882. Joni Mitchell to perform at Grammy Awards for first time at age 80. There’s a first time for everything! Legendary singer-songwriter Joni Mitchell will make her debut as a Grammy performer on Sunday at age 80. Researchers report first sighting of newborn great white shark Drone footage shot off the coast of Southern California may have enabled the first sighting of a newborn great white shark in the wild. Stolen painting returned to rightful owner after more than 50 years A painting that is older than the US Constitution was returned to its owner more than 50 years after being stolen by mobsters, according to the FBI.  $9,800:  That’s the average ticket price for the upcoming Super Bowl matchup between the Kansas City Chiefs and San Francisco 49ers, according to TickPick. These staggering prices will make the February 11 game the most expensive Super Bowl on record. PHOTOS OF THE DAY San Sebastián, Spain Two women surf at San Sebastián in the Basque Country during a period of unusually high winter temperatures Photograph: Javier Etxezarreta/EPA Gangwon, South Korea Shimada Mao of Japan on her way to winning the women’s figure skating gold medal at the Winter Youth Olympic Games at the Gangneung Ice Arena Photograph: Joel Marklund for OIS/IOC/EPA Share on FacebookShare on Twitter The Great Hall, one of the highlights inside Rochdale town hall Photograph: Christopher Thomond/The Guardian Market Closes for January 30th, 2024 Market Index  Close  Change  Dow Jones 38467.31 +133.86 +0.35% S&P 500  4924.97 -2.96 -0.06% NASDAQ  15509.90   -118.14 -0.76% TSX  21227.87 +27.81 +0.13% International Markets Market Index  Close  Change  NIKKEI  35760.92 -304.94 -0.85% HANG SENG 15703.45 -373.79 -2.33% SENSEX  71139.90   -801.67 -1.11% FTSE 100* 7666.31 +33.57 +0.44% Bonds Bonds  % Yield  Previous % Yield CND. 10 Year Bond  3.408 3.450 CND. 30 Year Bond  3.326 3.396 U.S.    10 Year Bond 4.0357 4.0740 U.S. 30 Year Bond 4.2565 4.3087 Currencies BOC Close  Today  Previous   Canadian $   0.7460 0.7458 US $    1.3404 1.3408 Euro Rate 1 Euro=  Inverse    Canadian $   1.4533 0.6881 US $    1.0842 0.9224 Commodities Gold Close  Previous   London Gold Fix  2022.50 2018.45 Oil WTI Crude Future  77.82 76.78 Market Commentary: 📈 On this day in 2000, 17 dot-com companies each spent $73,000 per second for network television ads—a total of nearly $38 million—during Super Bowl XXXIV. By the time of the next Super Bowl, the bubble had burst, and several of those companies had gone into Chapter 11. Canada By Bloomberg Automation (Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 0.1%, or 27.81 to 21,227.87 in Toronto. The index advanced to the highest closing level in at least a year. Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 1.7%. Filo Corp. had the largest increase, rising 9.1%. Today, 111 of 225 shares rose, while 111 fell; 4 of 11 sectors were higher, led by energy stocks. Insights * This month, the index rose 1.3% * The index advanced 3.2% in the past 52 weeks. The MSCI AC Americas Index gained 22% in the same period * The S&P/TSX Composite is at its 52-week high and 13.6% above its low on Oct. 27, 2023 * The S&P/TSX Composite is up 0.9% in the past 5 days and rose 1.3% in the past 30 days * S&P/TSX Composite is trading at a price-to-earnings ratio of 16.7 on a trailing basis and 15.5 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$3.36t * 30-day price volatility fell to 8.71% compared with 9.57% in the previous session and the average of 10.71% over the past month ================================================================ |Index Points | | Sector Name | Move | % Change | Adv/Dec ================================================================ Energy | 39.1882| 1.1| 32/9 Financials | 10.5009| 0.2| 15/10 Industrials | 7.7490| 0.3| 14/12 Utilities | 0.5806| 0.1| 8/7 Consumer Discretionary | -0.5765| -0.1| 6/7 Health Care | -0.7292| -1.2| 2/2 Consumer Staples | -1.8503| -0.2| 3/7 Real Estate | -4.5412| -0.9| 6/15 Materials | -6.3060| -0.3| 21/31 Communication Services | -6.9745| -0.9| 1/4 Information Technology | -9.2297| -0.5| 3/7 ================================================================ | | |Volume VS| YTD |Index Points | | 20D AVG | Change Top Contributors | Move | % Change | (%) | (%) ================================================================ Canadian Natural Resources | 10.9900| 1.7| 9.2| 0.3 Suncor Energy | 9.2370| 2.3| -34.8| 5.9 Manulife Financial | 5.7030| 1.5| 47.3| 1.7 Bank of Montreal | -3.0250| -0.5| 23.8| -2.0 BCE | -3.2540| -0.9| 13.7| 4.7 Shopify | -14.3300| -1.5| -10.4| 7.0 US By Rita Nazareth (Bloomberg) — A $246 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) dropped in late trading as results from Microsoft Corp. and Alphabet Inc. sank two of the tech behemoths that have powered the rally in stocks. Alphabet reported fourth-quarter revenue from its core search advertising business that fell short of analysts’ estimates, overshadowing an otherwise strong end to the year. Microsoft’s cloud growth disappointed some on Wall Street — even as the company posted its strongest revenue growth since 2022, spurred by interest in new artificial intelligence products. Equities struggled for solid footing in regular trading, with traders also sifting through a batch of economic data and awaiting the Federal Reserve rate decision. Wall Street had to digest a hotter-than-estimated reading on job openings, which left investors guessing what Jerome Powell will say Wednesday as the market further trimmed bets on a March Fed cut. “Tomorrow may be significant for markets as the cross-currents of big-tech earnings, the ADP jobs report, the distribution of Treasury issuance, and Powell comments meet at a critical juncture,” said Jose Torres at Interactive Brokers.  “I’m expecting Powell to take some rate cuts off the table by perhaps even calling the current projections aggressive.” The S&P 500 was little changed, while the Nasdaq 100 underperformed, with Apple Inc. leading losses in mega-caps. Traders also waded through results from an economic barometer — United Parcel Service Inc. — which tumbled on a disappointing outlook. The courier plans to cut 12,000 jobs. Financial shares gained after a bullish analyst call on major US banks. Treasury two-year yields rose four basis points to 4.36%. Ten-year yields fell two basis points to 4.05%. A survey conducted by 22V Research shows 38% of respondents expect Wednesday’s Fed meeting/presser to be “risk-on,” 39% are betting on a mixed or negligible reaction and only 23% said “risk-off.” On aggregate, investors are paying more attention to payrolls (59%) than the Fed (41%) this week, according to the tally. Swap contracts referencing the March Fed meeting date — the next one after this week’s — now show about a third of a 25-basis-point drop. Late last year, a quarter-point cut in March was completely priced in, reflecting expectations for labor-market cooling that have failed to materialize. US job openings unexpectedly rose in December to the highest level in three months while fewer Americans quit their jobs. Tuesday’s data kicks off a slew of releases that will offer insights into the state of the labor market. A report due Wednesday is forecast to point to easing employment costs at the end of 2023, while the government’s jobs report Friday is projected to show US employers added around 185,000 positions in January. “The job market holds the keys to future Fed policy,” said Jeffrey Roach at LPL Financial. “In addition to the solid job market, uncertainty over the impact from Red Sea shipping disruption adds pressure to the Fed as they prepare markets for rate cuts.” Separate data showed US consumer confidence increased in January to the highest level since the end of 2021 as Americans grew more upbeat about the economy and the job market amid more sanguine views about inflation. “For the Federal Reserve — as most data releases are now interpreted through the lens of the Fed — concern is centered on whether a more confident consumer could ignite another bout of inflation,” said Quincy Krosby at LPL Financial. “Still, consumer confidence is key to whether the economic landscape remains robust helping to ensure a soft landing.” As valuations have improved meaningfully during the “Fed pivot rally,” there’s now considerable risk of volatility, according to Lauren Goodwin at New York Life Investments.  “But if 2023 taught investors anything, it’s that timing the market is incredibly difficult, and sitting it out even when investors call for recession or volatility is not likely to be the best allocation approach,” she noted. “As a result, we believe investors will have to be increasingly focused on quality and yield.” Jonathan Krinsky at BTIG noted that a basket of 50 companies that “matter most” to hedge funds is about as extended on a daily basis as it’s been over the last two decades. Many of these holdings are semiconductors, mega-cap tech and communication services, he noted. The gauge’s Relative Strength Index is close to 81 — seen by many chartists as a sign of an overbought market. “As we enter the heart of EPS season along with a significant amount of macro, we would be cautious in chasing extended names here as the risk of an unwind, either during or after these events, remains quite high in our view,” Krinsky noted. The dominance of the 10 biggest stocks is increasingly drawing similarities with the dot-com bubble, raising the risk of a selloff, according to JPMorgan Chase & Co. quantitative  strategists. The share of the top 10 stocks on the MSCI USA Index, including all of the so-called Magnificent Seven tech stocks, has risen to 29.3% by the end of December, the strategists wrote. That’s just moderately below the historical peak share of 33.2%, which occurred in June 2000. Furthermore, only four sectors are represented in the top 10, compared to the historical median of six, the strategists said. Besides Microsoft and Alphabet, three other big tech companies with a combined market value of more than $10 trillion report results this week. Those firms, along with the other members of Magnificent Seven, carry an about 34% premium to the S&P 500 in terms of forward price-to-earnings, according to data compiled by Bloomberg. “If we don’t get any shockingly negative news from the large-cap tech earnings this week and (especially) if the Fed sticks with its current (much more) dovish rhetoric, it’s going to give investors the kind of green light that could push the stock market higher into February —just like the market rallied strongly into February in 2020,” said Matt Maley at Miller Tabak + Co. Corporate Highlights: * PayPal Holdings Inc. will reduce its workforce by about 9% as Chief Executive Officer Alex Chriss, who took over in September, grapples with rising competition, profit pressures and a raft of analyst downgrades. * Whirlpool Corp., the owner of the Maytag and KitchenAid brands, projects 2024 sales will be weaker than Wall Street expectations as consumers forgo appliance upgrades. * Activist investor Nelson Peltz believes Walt Disney Co. can achieve profitability in streaming by bundling its ESPN+ online service with a larger player interested in sports, such as Netflix Inc., according to people familiar with the matter. * Boeing Co. withdrew a request for a key safety exemption that would have helped speed approval of its coming 737 Max 7 aircraft, bending to rising pressure to prioritize safety in the wake of a near-catastrophe on one of its planes. * General Motors Co. beat Wall Street expectations for the fourth quarter and expects profits this year to grow on improved sales as the US economy chugs along. * JetBlue Airways Corp. is evaluating deeper cost cuts, delaying aircraft and reworking its flight network in an effort to return to profitability in the wake of the near-collapse of its planned purchase of Spirit Airlines Inc. * Pfizer Inc. reported fourth-quarter profit that beat analysts’ estimates as the US government returned fewer doses of its Covid-19 treatment than predicted. Key events this week: * China non-manufacturing PMI, manufacturing PMI, Wednesday * Japan industrial production, retail sales, housing starts, Wednesday * Bank of Japan issues summary of opinions from January policy meeting, Wednesday * Boeing announces earnings amid US government safety probe, Wednesday * Federal Reserve interest rate decision and Fed Chair Jerome Powell’s news conference, Wednesday. * US Treasury quarterly refunding, Wednesday. * China Caixin manufacturing PMI, Thursday * Eurozone S&P Global Manufacturing PMI, CPI, unemployment, Thursday * US productivity, construction spending, ISM Manufacturing, initial jobless claims, Thursday * Apple, Amazon, Meta, Deutsche Bank, BNP Paribas earnings, Thursday * Bank of England interest rate decision, Thursday * US employment report, University of Michigan consumer sentiment, factory orders, 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 0.7% * The Dow Jones Industrial Average rose 0.3% * The MSCI World index was little changed Currencies * The Bloomberg Dollar Spot Index was little changed * The euro rose 0.1% to $1.0844 * The British pound fell 0.1% to $1.2696 * The Japanese yen was little changed at 147.60 per dollar Cryptocurrencies * Bitcoin rose 0.9% to $43,565.51 * Ether rose 2.9% to $2,373.9 Bonds * The yield on 10-year Treasuries declined two basis points to 4.05% * Germany’s 10-year yield advanced three basis points to 2.27% * Britain’s 10-year yield advanced two basis points to 3.90% Commodities * West Texas Intermediate crude rose 1.4% to $77.82 a barrel * Spot gold rose 0.1% to $2,036.09 an ounce This story was produced with the assistance of Bloomberg Automation. –With assistance from Jessica Menton, Ryan Vlastelica, Elizabeth Stanton, Michael Mackenzie, Isabelle Lee and John Viljoen. Have a lovely evening. Be magnificent! As ever, Carolann A smooth sea never made a skilled sailor. –Franklin D. Roosevelt, 1882-1945. 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.
January 29^th, 1802: First celebration of Burns Night, in honor of poet Robert Burns’s birthday by The Mother Club in Greenock who later realized his actual birthday was January 25^th.
January 29, 1989: Dow jumps 38.06 recoups 508-pt loss since Oct 1987; index at 2,256.43  Go to article >>

Thomas Paine, b.1737.
Anton Chekov, b.1860.
W.C. Fields, b.1880.

NASA’s Perseverance rover may already have found signs of life on Mars, discovery of ancient lake sediments reveals
The discovery of an ancient lake bed beneath the Perseverance rover’s location on Mars could mean the robotic scout has already scraped up microbial fossils. But we won’t know for sure until we fetch the sample. Read More.

Even Stone Age people burned their porridge, 5,000-year-old food-scorched clay pot reveals
Thousands of years ago, a Neolithic person tried cooking porridge but ended up burning.  Read More.

1.6-billion-year-old fossils push back origin of multicellular life by tens of millions of years
Researchers uncovered fossils of multicellular eukaryotes that are over a billion years old. Read More.

Largest ever fully electric concept plane could take to the skies by 2033
The Elysian E9X is a 90-seater plane that can one day travel up to 620 miles — and it’s based on research that claims our previous assumptions on battery-electric aircraft were wrong. Read More.

Already broke your New Year’s diet resolution?
Many people make dietary New Year’s resolutions … and most struggle to stick with them. Here’s why you shouldn’t blame yourself.

A look back at ‘Entertaining,’ Martha Stewart’s first book
Before she was a style and food icon, Martha Stewart wrote a cookbook in 1982 that changed how people hosted parties. Some of its ideas hold up surprisingly well today.

5 reasons to be thrilled about this year’s Oscar nominations
Despite the notable Oscar snubs last week, there are still some nominees who could make history at this year’s show

PHOTOS OF THE DAY
London, UK
Two-year-old Damian is walked through some newly emerged daffodils in St James’s Park. This winter has been one of the warmest on record, with Kinlochewe in the Scottish Highlands reaching 19.6C over the weekend
Photograph: Dan Kitwood/Getty Images
Florida, US
Royal Caribbean’s Icon of the Seas. billed as the world’s largest cruise ship, sails from the Port of Miami on its maiden cruise
Photograph: Marco Bello/AFP/Getty Images
Venice, Italy
The pantegana (big rat) releases balloons near the Rialto Bridge on the Grand Canal during the Venice carnival
Photograph: Guglielmo Mangiapane/Reuters
Market Closes for January 29^th, 2024

Market Index	Close	Change
Dow Jones	3833.45	+224.02
		+0.59%
S&P 500	4927.93	+36.96
		+0.76%
NASDAQ	15628.04	+172.68
		+1.12%
TSX	21200.06	+74.78
		+0.35%

International Markets

Market Index	Close	Change
NIKKEI	36165.32	+138.38
		+0.38%
HANG SENG	16077.24	+125.01
		+0.78%
SENSEX	71941.57	+1240.90
		+1.76%
FTSE 100*	71941.57	+1240.90
		+1.76%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.450	3.523
CND. 30 Year Bond	3.396	3.479
U.S.    10 Year Bond	4.0740	4.1373
U.S. 30 Year Bond	4.3087	4.3688

Currencies

BOC Close	Today	Previous
Canadian $	0.7458	0.7434
US $	1.3408	1.3452

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4528	0.6883
US $	1.0835	0.9229

Commodities

Gold	Close	Previous
London Gold Fix	2018.45	2023.75
Oil
WTI Crude Future	76.78	78.01

Market Commentary:
📈 On this day in 1886, Karl Benz received a patent in Germany for his “motorwagen,” a frail and ungainly vehicle with three wheels and a wooden chassis. It was the world’s first automobile.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.4%, or 76.4 to 21,201.68 in Toronto.
The index advanced to the highest closing level in at least a year.
Shopify Inc. contributed the most to the index gain, increasing 2.1%.
Ballard Power Systems Inc. had the largest increase, rising 4.5%.
Today, 123 of 225 shares rose, while 97 fell; 10 of 11 sectors were higher, led by information technology stocks.
Terminal users can read more in our markets live blog.
Insights
* This month, the index rose 1.2%
* The index advanced 2.4% in the past 52 weeks. The MSCI AC Americas Index gained 20% in the same period
* The S&P/TSX Composite is at its 52-week high and 13.4% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.3% 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 16.6 on a trailing basis and 15.4 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$3.35t
* 30-day price volatility fell to 9.57% compared with 9.73% in the previous session and the average of 10.81% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 34.1122| 1.8| 10/0
Financials | 12.8941| 0.2| 14/13
Industrials | 9.9361| 0.3| 13/12
Materials | 7.4500| 0.3| 29/22
Consumer Discretionary | 7.1846| 0.9| 9/4
Utilities | 6.0406| 0.7| 11/4
Real Estate | 4.8161| 1.0| 17/2
Consumer Staples | 4.5390| 0.5| 8/2
Communication Services | 3.8971| 0.5| 3/2
Health Care | 0.7683| 1.2| 3/1
Energy | -16.8724| -0.5| 6/35
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 19.8000| 2.1| 15.6| 8.6
Constellation Software | 8.9620| 1.8| -32.1| 14.5
TD Bank | 7.1570| 0.7| -46.3| -3.3
RBC | -2.7460| -0.2| 22.3| -1.0
Onex | -2.9810| -5.9| 8.0| 8.6
Canadian Natural Resources | -6.3640| -1.0| 7.8| -1.3
US
By Rita Nazareth
(Bloomberg) — Wall Street’s busy week kicked off with gains in both stocks and bonds, with the Treasury surprising several traders after cutting its quarterly borrowing estimate to $760 billion.
The news came a few days before the Treasury’s quarterly refunding announcement and drew investors’ attention amid all the concern about a widening budget deficit.
Treasury yields fell, lifting the tech-heavy Nasdaq 100 up 1% ahead of results from five mega-caps that have a combined market value of more than $10 trillion.
Aside from the deluge of earnings this week, investors are also awaiting the Federal Reserve’s rate decision and a raft of data from consumer confidence to jobs.
“This week could be key,” said Chris Larkin at E*TRADE from Morgan Stanley. “If the market is going to sustain its latest breakout, it may need to avoid earnings disappointments from this week’s big-tech lineup, get encouraging news from the Fed on interest rates, and see jobs numbers that are solid, but not too hot.”
The S&P 500 topped 4,900, with Tesla Inc. leading gains in mega-caps.
Amazon.com Inc. abandoned its planned $1.4 billion acquisition of iRobot Corp., sinking shares of the Roomba maker.
Treasury 10-year yields dropped seven basis points to 4.07%.
Oil  fell after last week’s rally pushed futures into over-bought territory.
At the same time, ample crude supplies outweighed military escalation in the Middle East.
This week also marks the busiest this season for earnings, with results from Microsoft Corp., Alphabet Inc., Apple Inc., Amazon.com Inc. and Meta Platforms Inc.
As most of the mega-caps remain in record territory, there are concerns that investors are over- exposed to just a handful of stocks, which could open the door for some pain if quarterly results underwhelm.
The next few days will be crucial to determine whether stock valuations — particularly those of mega-cap US technology companies — are sustainable given that investors are pricing in significant earnings growth expectations in anticipation of rate cuts coming sooner than Fed officials project, according to JPMorgan Chase & Co.’s Marko Kolanovic.
“The 800-pound gorillas all report this week,” said Paul Nolte at Murphy & Sylvest Wealth Management. “Expect to see some market volatility around those earnings.
Combined with a Fed meeting, this week could be a wild ride as we head into February.”
After a bit of a rocky start to the year, the S&P 500 went on to cap a third straight weekly advance — and is now up almost 20% since late October.
In the week through Jan. 23, a ratio of bulls to bears identified in an Investors Intelligence survey of newsletter writers was hovering at the highest since 2021, when stocks neared a prior peak before the 2022 bear market, Yardeni
Research analysis shows.
Another signal of elevated bullishness was evident in a weekly survey of retail investors by the American Association of Individual Investors.
Dan Wantrobski at Janney Montgomery Scott is on the watch for further “profit-taking” or “consolidation” in leadership areas — which remain overbought on a short-term basis, according to him.
From a fundamental standpoint, economic data in the US continues pointing to a benign backdrop for markets, according to Mark Haefele at UBS Global Wealth Management.
He expects the Fed to feel comfortable cutting rates starting in May — though this will likely require further signs the economy is cooling off.
“In our view, stocks continue to price in an ‘immaculate everything’ scenario in which the Fed cuts deeply and the U.S. economy (at worst) glides down for a ‘soft landing’,” said Chris Senyek of Wolfe Research. “While we’re still not believers, our sense is that the Fed and economy are now ‘show me’ stories.”
Going into this week’s two-day Fed policy meeting, investors are assigning roughly even odds to the prospect that the central bank will start lowering borrowing costs at its next decision in March.
That makes Fed Chair Jerome Powell’s press conference, and any signal he may or may not choose to send, of critical importance.
It all comes down to how officials have been reading the recent spate of economic data.
On one hand, inflation numbers continue to surprise to the downside.
On the other, consumer spending continues to be surprisingly robust.
“The Fed could justifiably signal a March cut,” said Robert Teeter at Silvercrest Asset Management. “Nonetheless, we expect the Fed to back away from taking action in March, while simultaneously laying the groundwork for future cuts predicated on the removal of excessively restrictive rates.”
Underscoring the wait-and-see sentiment, a JPMorgan & Chase survey recently showed the percentage of investors who are neutral on the bond market has increased to the highest since April.
“We believe the odds of Fed rate cuts occurring in the first quarter of 2024 remain low, and that the much-anticipated policy pivot won’t begin until midyear,” said Saira Malik at Nuveen. “Still, with inflation falling and monetary policy
expectations recalibrating, we encourage investors to assess their taxable fixed-income portfolio allocations and to take advantage of opportunities we see across the asset class.”
Powell and his colleagues are expected to keep benchmark borrowing costs at a range between 5.25% and 5.5%.
They may also deliberate when to start slowing down the pace of balance-sheet unwinding — a process known as quantitative tightening.
“One potential wildcard comes in the form of the market’s response to any attempt on the part of the Fed to begin socializing the looming tapering of QT,” said Ian Lyngen and Ben Jeffery at BMO Capital Markets. “It’s bond bullish to be sure, although there is a strong argument that much of the potential for slower SOMA rollovers is already priced into the US rates market.”
Meantime, blue-chip firms have sold $188.57 billion of bonds in the US in January, setting a record for the month, as companies look to take advantage of drops in longer-term borrowing costs.
The sales broke the prior record for January of around $175 billion, set in 2017, according to data compiled by Bloomberg News.
And more sales are probably coming through the end of the month, Wall Street bond syndicate professionals said.
And dollar bulls are coming back with a splash in the latest MLIV Pulse survey.
About 62% of respondents surveyed Jan. 22-26 expect the Bloomberg Dollar Spot Index to gain over the next month.
That’s the highest reading since September of 2022.

Corporate Highlights:
* Whirlpool Corp., the owner of the Maytag and KitchenAid brands, projects 2024 sales will be weaker than Wall Street expectations as consumers forgo appliance upgrades.
* Bankrupt pharmacy chain Rite Aid Corp. hired liquidators at the request of company lenders even as the retailer continues negotiating with at least two potential buyers, a person familiar with the chain’s revival efforts said.
* SoFi Technologies Inc. reached profitability for the first time, taking the fintech one step closer to Chief Executive Officer Anthony Noto’s goal of turning the former anti-bank into a top 10 financial institution.
* Reddit Inc. is weighing feedback from early meetings with potential investors in its initial public offering that it should consider a valuation of at least $5 billion, according to people familiar with the matter, even as it is estimated below that figure in the volatile market for shares of private companies.
* Bayer AG was ordered to pay about $2.3 billion to a former Roundup user who blamed the weed killer for his cancer.
* Renault SA scrapped plans to list its electric-vehicle business, reversing course due to a lack of appetite for share sales amid a slowdown in EV demand.
* Ryanair Holdings Plc said it would jump at the chance to grab any extra Boeing Co. 737 Max jet deliveries from airlines that don’t want them, lending support to the embattled US plane maker under fire for quality lapses after a mid-air panel blowout this month.
* Holcim Ltd., a Swiss cement maker, said it will spin off its North American unit into a separate US-listed entity, a move that could unlock a higher valuation for the business.
* BYD Co.’s earnings rose on back of soaring electric vehicle sales — but fell short of analyst expectations as a price war in China hit the bottom line.
* China Evergrande Group received a liquidation order from a Hong Kong court, setting off a daunting process to carve up the biggest casualty of a property crisis that’s upending the world’s second-largest economy.

Key events this week:
* Japan unemployment, Tuesday.
* Eurozone economic confidence, GDP, consumer confidence, Tuesday
* US Conf. Board consumer confidence, JOLTS jobs openings, Tuesday
* Microsoft, Alphabet earnings, Tuesday
* China non-manufacturing PMI, manufacturing PMI, Wednesday
* Japan industrial production, retail sales, housing starts, Wednesday
* Bank of Japan issues summary of opinions from January policy meeting, Wednesday
* Boeing announces earnings amid US government safety probe, Wednesday
* Federal Reserve interest rate decision and Fed Chair Jerome  Powell’s news conference, Wednesday.
* US Treasury quarterly refunding, Wednesday.
* China Caixin manufacturing PMI, Thursday
* Eurozone S&P Global Manufacturing PMI, CPI, unemployment, Thursday
* US productivity, construction spending, ISM Manufacturing, initial jobless claims, Thursday
* Apple, Amazon, Meta, Deutsche Bank, BNP Paribas earnings, Thursday
* Bank of England interest rate decision, Thursday
* US employment report, University of Michigan consumer sentiment, factory orders, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.8% as of 4 p.m. New York time
* The Nasdaq 100 rose 1%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index rose 0.7%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.2% to $1.0831
* The British pound was little changed at $1.2711
* The Japanese yen rose 0.5% to 147.47 per dollar
Cryptocurrencies
* Bitcoin rose 2.8% to $43,159.08
* Ether rose 1.8% to $2,303.8
Bonds
* The yield on 10-year Treasuries declined seven basis points to 4.07%
* Germany’s 10-year yield declined six basis points to 2.23%
* Britain’s 10-year yield declined nine basis points to 3.88%
Commodities
* West Texas Intermediate crude fell 1.3% to $77.02 a barrel
* Spot gold rose 0.7% to $2,032.48 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee, Jessica Menton, Ye Xie, Michael Mackenzie and Kasia Klimasinska.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
You can achieve wisdom in three ways.  The first way is the way of meditation.  This is the most noble way.  The second way is the way of imitation.  This is the easiest and least satisfying way.  Thirdly, there is the way of experience.  This is the most difficult way. –Confucius, c. 551-c. 479, BCE.

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. January 26, 1926: John Logie Baird give the first public demonstration of television in his laboratory in London. On Jan. 26, 1950, India proclaimed itself a republic.  Go to article >> This painting is expected to fetch $20 million at auction Not seen for decades, David Hockney’s 1965 painting “California” will be auctioned off next month. LeBron James named to record 20th NBA All-Star Game The Los Angeles Lakers forward was named to his 20th NBA All-Star Game on Thursday, passing NBA legend Kareem Abdul-Jabbar for most of all time. Right again, Einstein: New snapshot of 1st black hole to be photographed confirms relativity The new black hole image offers further confirmation for Albert Einstein’s theory of general relativity.  Read More. Hoard of Bronze Age jewelry discovered in Poland was part of ancient water burial ritual, study finds A collection of metal jewelry and human remains found at a dry lake-bed site in Poland were part of an ancient ritual. Read More. Newly discovered asteroid the size of an airplane will have ‘very close encounter’ with Earth on Saturday — and you can watch it happen Asteroid 2024 BJ, which astronomers detected earlier this month, will be live-streamed as it zooms within 220,000 miles of Earth, or closer to us than the average distance to the moon.  Full Story: Live Science (1/25)  Gargantuan ‘star lizard’ was one of the last (and largest) dinosaurs of its kind Scientists spent years retrieving fossils of the Cretaceous sauropod, which they’ve named Sidersaura, or “star lizard.” Read More. 36 Hours: Scuba dive through an underwater art gallery on Grenada. Best of Late Night: “In a post on Truth Social, former President Trump said that anyone who donates to Nikki Haley’s campaign will be permanently barred from the MAGA camp ‘from this moment forth.’ What? ‘From this moment forth’? What’s going on? You know Trump is stressed when he starts talking like a dungeon master. ‘[imitating Trump] From this moment forth, all my enemies shall bow before me!” — SETH MEYERS. “Wow, what does ‘barred from the MAGA camp’ even mean? Like, what, you’re not invited to the next insurrection?” — JIMMY KIMMEL. “If you’re wondering what MAGA camp is, it’s like Boy Scout camp, except the badges are for things like tax evasion, election fraud, lying about your golf score.” — SETH MEYERS “A jury is there to determine how much he will have to pay, and we know he doesn’t like to pay, so he showed up to speak on his own behalf. And everything went smoothly until the judge asked him to tell the truth, the whole truth, and everybody busted out laughing.” — JIMMY KIMMEL “He only lasted about three minutes. Then Stormy Daniels was, like, ‘Wow, a minute longer than I expected.’” — JIMMY FALLON PHOTOS OF THE DAY A Himalayan monal in Shannan City, Tibet. The pheasant is native to forests and shrublands at elevations of 2,100 metres to 4,500 metres. Photograph: Tenzing Nima Qadhup/Xinhua News Agency/eyevine Fireflies in a forest at Pitrufquen, Chile. Photograph: Cristobal Saavedra Escobar/Reuters London, UK People walk past Singularity, an illuminated art installation by Squidsoup that forms part of Battersea Power station’s annual light festival. The seven installations along the trail will be on display until 25 February Photograph: Tolga Akmen/EPA Market Closes for January 26th, 2024 Market Index  Close  Change  Dow Jones 38109.43 +60.30 +0.16% S&P 500  4890.97 -3.19 -0.07% NASDAQ  15455.36   -55.14 -0.36% TSX  21125.28 +23.74 +0.11% International Markets Market Index  Close  Change  NIKKEI  35751.07 -485.40 -1.34% HANG SENG 15952.23 -259.73 -1.60% SENSEX  70700.67   -359.64 -0.51% FTSE 100* 7635.09 +105.36 +1.40% Bonds Bonds  % Yield  Previous % Yield CND. 10 Year Bond  3.523 3.478 CND. 30 Year Bond  3.479 3.454 U.S.    10 Year Bond 4.1373 4.1107 U.S. 30 Year Bond 4.3688 4.3643 Currencies BOC Close  Today  Previous   Canadian $   0.7434 0.7421 US $    1.3452 1.3475 Euro Rate 1 Euro=  Inverse    Canadian $   1.4604 0.6848 US $    1.0856 0.9211 Commodities Gold Close  Previous   London Gold Fix  2023.75 2024.65 Oil WTI Crude Future  78.01 77.81 Market Commentary: 📈 On this day in 1921, Akio Morita, the future co-founder of Sony, was born in Nagoya, Japan. With a market value of more than $116 billion, the electronics and entertainment giant Morita helped build is now one of Japan’s biggest companies Canada By Bloomberg Automation (Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.1%, or 23.74 to 21,125.28 in Toronto. The index advanced to the highest closing level in at least a year. Shopify Inc. contributed the most to the index gain, increasing 1.1%. Mattr Corp. had the largest increase, rising 7.3%. Today, 120 of 225 shares rose, while 104 fell; 8 of 11 sectors were higher, led by information technology stocks. Insights * This month, the index rose 0.8% * So far this week, the index rose 1%, heading for the biggest advance since the week ended Dec. 22 * The index advanced 2.1% in the past 52 weeks. The MSCI AC Americas Index gained 20% in the same period * The S&P/TSX Composite is 0.2% below its 52-week high on Jan. 24, 2024 and 13% above its low on Oct. 27, 2023 * S&P/TSX Composite is trading at a price-to-earnings ratio of 16.6 on a trailing basis and 15.3 times estimated earnings of its members for the coming year * The index’s dividend yield is 3.2% on a trailing 12-month basis * S&P/TSX Composite’s members have a total market capitalization of C$3.34t * 30-day price volatility fell to 9.73% compared with 11.20% in the previous session and the average of 10.86% over the past month ================================================================ | Index Points | | Sector Name | Move | % Change | Adv/Dec ================================================================ Information Technology | 15.7756| 0.8| 7/3 Energy | 15.6394| 0.4| 23/18 Financials | 6.2477| 0.1| 17/9 Industrials | 4.2034| 0.1| 17/9 Real Estate | 2.1766| 0.4| 16/5 Communication Services | 1.2867| 0.2| 4/1 Consumer Discretionary | 0.3318| 0.0| 8/5 Health Care | 0.1435| 0.2| 3/1 Utilities | -4.2673| -0.5| 5/10 Consumer Staples | -6.7318| -0.7| 2/9 Materials | -11.0757| -0.5| 18/34 ================================================================ | | |Volume VS | YTD| Index | | 20D AVG | Change Top Contributors |Points Move| % Change | (%) | (%) ================================================================ Shopify | 10.0300| 1.1| -11.6| 6.3 RBC | 6.3740| 0.5| 87.8| -0.8 Constellation Software | 4.5650| 0.9| -45.3| 12.5 TD Bank | -3.7060| -0.4| -67.5| -4.0 Couche-Tard | -4.8140| -1.2| -32.7| 2.1 Brookfield Corp | -5.1990| -0.9| -7.1| 2.7 US By Rita Nazareth (Bloomberg) — Wall Street grappling with mixed economic data sent Treasuries down, with traders betting the Federal Reserve will signal patience before it decides to cut interest rates this year. Bond losses were led by shorter maturities as data showed personal spending topped estimates — even as the Fed’s preferred gauge of underlying inflation slowed to an almost three-year low. With policymakers telegraphing they want to see sustainable signs of cooling before lowering borrowing costs, the figures only reinforced bets that a March pivot is still very much elusive. It’s not that investors have abandoned their bets on an interest-rate cut in the first quarter, but they continued to fully price in a Fed move in May. Of course, that’s all going to hinge upon the next several economic reports, with the impacts from the disruptions in shipping yet to be seen. As Jerome Powell and his colleagues gather next week, traders will be waiting to hear how all that plays out in the balance of risks. “Expectations remain that the Fed will be discussing ‘when’ — not ‘if’ — to initiate its rate-cutting cycle,” said Quincy Krosby, chief global strategist at LPL Financial. “Unless next month’s collection of inflation-related data underscores decisively that the path toward 2% is squarely in sight, the Fed will most likely wait until May or June to begin easing rates.” Two-year US yields topped 4.35%. The S&P 500 wavered, while notching a third straight weekly gain. The Nasdaq 100 underperformed as disappointing forecasts from Intel Corp. and KLA Corp. weighed on chipmakers. Oil hit a two-month high after a fuel tanker operated on behalf of trading giant Trafigura Group. was struck by a missile as it transited the Red Sea, underscoring the geopolitical risks to crude supplies. It’s too soon for US policymakers to call victory as the economy moves from an inflation sweet spot into a more challenging environment ahead, according to Mohamed El-Erian. The performance of the world’s largest economy in the third and fourth quarters was “remarkable,” El-Erian, the president of Queens’ College, Cambridge, told Bloomberg Television Friday. But “the big risk for the administration is that the economy slows this year because some of the drivers of last year’s growth are no longer there. And, secondly, inflation stops going down.” “Economic data in the US continues to point to a benign backdrop for markets — with resilient growth, moderating inflation, and the prospect of rate cuts,” said Solita Marcelli at UBS Global Wealth Management. “We expect the Fed to feel comfortable cutting rates starting in May, though this will likely require further signs that the economy is cooling off between now and then.” The Federal Open Market Committee is widely expected to hold interest rates steady for the fourth straight meeting when it gathers in Washington on Jan. 30 and 31. The real focus though will be on what lies ahead, at the March meeting and beyond. To Carl Riccadonna at BNP Paribas, the Fed will likely lean against imminent cuts. While a March move can’t be ruled out if the data warrants, he says his base case is for 150 basis points of rate reductions this year — starting in May. “A faint hawkish bias may remain in the statement, though we admit it will be a close call,” he noted. “If not, we expect the committee to introduce language signaling a patient approach before adjusting policy settings. Recent easing in financial conditions and signs of economic resilience afford the FOMC some time to judge whether inflation is durably converging to the 2% target. Indeed, Powell and his colleagues can arguably take their time to start easing policy because they wouldn’t be cutting rates to counteract an economic contraction — as has often occurred in the past. Instead, they would be calibrating policy to reflect a surprisingly steep drop in inflation from a multidecade high 1-1/2 years ago. “A soft landing seems increasingly evident,” said David Russell at TradeStation. “The big question now is how quickly Jerome Powell will normalize policy when there’s no immediate need. The data matters less going forward and internal conversations at the Fed matter more.” To Gus Faucher at PNC, the Fed does not need to have inflation at 2% year-over-year to cut rates, but will be cautious given the potential for the tight labor market and strong consumer growth to reignite inflationary pressures. The Fed has further work to do and should not be tempted to declare “mission accomplished,” said Jeffrey Roach at LPL Financial.  “With inflation largely in the bag, the question for the Fed shifts to how to keep it there, and in particular, how far to lower rates in 2024 to achieve a more neutral setting,” said Krishna Guha at Evercore ISI. “Growth remains for now strong, raising questions as to whether short-run neutral could be higher than most estimates suggest – that also favoring waiting a little longer and not rushing in March.” Aside from the FOMC gathering next week, traders will be closely watching the latest labor-market figures. Economists surveyed by Bloomberg forecast US payrolls rose by about 180,000 in January following a December gain of 216,000. And when the Treasury Department previews its note and bond auction sizes for the next three months on Jan. 31, some of the projected sizes are likely to be the biggest investors have ever seen. Bond yields have seen a steep drop since October in anticipation that the Fed — which raised interest rates 11 times during the past two years to arrest a surge in inflation — will begin lowering them this year. Companies and governments have flooded international markets with $721 billion of new debt this month, a record-setting sum that’s found investors eager to take on credit risk while yield is still plentiful. Investors are insatiable in primary markets, loading up on debt with elevated yields before central bankers can pull rates lower. Next week will also bring results from some of the mega-caps that have powered the resurgence in US equities from the October 2022 bottom, including Apple Inc., Microsoft Corp. and Google’s parent Alphabet Inc. Though the artificial-intelligence mania and growing economic optimism has helped lift stocks, the ongoing fourth-quarter earnings season is going to be a key factor in deciding where equities are headed this year. Especially since experts have been divided lately, with some seeing this torrid rally as a sign the market is overheating, while others are expecting more gains ahead. “The impressive technical rally was reinforced this week with encouraging macro data,” said Mark Hackett at Nationwide. “The Goldilocks economic data (strong growth, easing inflation) lightened investor concerns heading into the FOMC meeting next week. While economic and market data is impressive, the mixed results from earnings season could act as a headwind, though we will know more after next week’s surge in announcements.” Corporate Highlights: * JetBlue Airways Corp. warned that its planned $3.8 billion acquisition of Spirit Airlines Inc. may be terminated in the coming days, setting up a possible clash between the carriers over the ailing deal. * Airbus SE is seeking to persuade customers to return some aircraft delivery slots that it could then hand over to United Airlines Holdings Inc., going all out for the rare chance to snatch a marquee order away from embattled rival Boeing Co. * American Express Co. forecast earnings for 2024 that topped analysts’ estimates and said it would stick to its long-term profit and revenue goals. * Salesforce Inc. is cutting about 700 workers, adding to a brutal string of tech layoffs at the start of 2024. * Johnson Controls International Plc is exploring a sale of a portfolio of heating and ventilation assets that could be valued at as much as $5 billion, people with knowledge of the matter said. * Saudi Aramco, the world’s largest oil company, is continuing to send tanker loads of crude and fuels through the southern Red Sea, where Houthi militants have for months been menacing merchant ships in response to Israel’s war in Gaza. * Grifols SA sued Gotham City Research over a report alleging the company has overstated profit and misstated its accounting. 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 0.5% * The Dow Jones Industrial Average rose 0.2% * The MSCI World index was little changed Currencies * The Bloomberg Dollar Spot Index was little changed * The euro was little changed at $1.0855 * The British pound was little changed at $1.2702 * The Japanese yen fell 0.3% to 148.06 per dollar Cryptocurrencies * Bitcoin rose 5.1% to $41,934.87 * Ether rose 1.8% to $2,256.9 Bonds * The yield on 10-year Treasuries advanced two basis points to 4.14% * Germany’s 10-year yield was little changed at 2.30% * Britain’s 10-year yield declined two basis points to 3.96% Commodities * West Texas Intermediate crude rose 1% to $78.15 a barrel * Spot gold was little changed This story was produced with the assistance of Bloomberg Automation. –With assistance from Michael Mackenzie and Liz Capo McCormick. Have a wonderful weekend everyone. Be magnificent! As ever, Carolann We’re all stories, in the end.  Just make it a good one, eh? –Doctor Who, mysterious 2,000-year-old time traveller. 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 Copyright © [CURRENT_YEAR] [COMPANY_NAME], All rights reserved. Our mailing address is: [COMPANY_FULL_ADDRESS] Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

Dear Friends,

 

Tangents: Happy Friday Eve.  First full moon of 2024 is tonight. 

 

Burns’ Night tonight.

“Oh wad some power the giftie gie us – To see ourselves as others see us. “ –Robert Burns.

 

On Jan. 25, 1915, the inventor of the telephone, Alexander Graham Bell, inaugurated U.S. transcontinental telephone service.  Go to article >>

 

Robert Burns, poet, b. 1759.

1874. Somerset Maugham, author, b. 1874.

Virginia Woolf, writer, b. 1882.

A 99-year-old swimmer broke three world records.

 

Science says a pinch of salt makes tea taste better.

 

The reason why you’re TATT (Tired All The Time).

 

Jon Stewart to return to ‘The Daily Show’
After almost a decade, the comedian will return to the show as a weekly host starting February 12. Watch this short video to learn how his return could impact the 2024 presidential race.

 

A judge is set to rule on a dispute over who created one of India’s best-known dishes globally. One restaurant claims it created the curry in the 1930s, but another rival chain said the restaurant’s story is complete naan-sense. 

 

Why the ‘sleepy girl mocktail’ might be a good idea
The internet is raving about a cherry juice mocktail … but does the concoction actually help you get a better night’s rest? Dietitians and health experts are weighing in. 

 

Alzheimer’s comes in at least 5 distinct forms, study reveals

Knowing that Alzheimer’s comes in at least five distinct forms could change the treatment landscape, the scientists behind the new study say. Read More.

 

Watch chameleon erupt in color ‘as if uttering her last words’ in her final moments before death

Footage of Labord’s chameleon in last moments of her short life shows her skin burst into ‘chaotic technicolor patterns.’ Read More.

 

This tiny radioactive battery can last 50 years without recharging

BetaVolt’s BV100 is smaller than a coin and contains a radioactive isotope of nickel that decays into copper and supplies power to a device for up to 50 years. But it probably won’t power your

smartphone anytime soon, an expert suggests. Read More.

 

Scientists accidentally create world’s tightest, smallest knot

The tangle is known as a trefoil knot and it’s made up of just 54 atoms. Read More.

 

‘I felt my heart skip a beat’: Researcher discovers dinosaur ‘chicken from hell’ after buying fossil online

A “chicken from hell” dinosaur that lived just before the asteroid struck has been discovered in South Dakota. Read More.

 

PHOTOS OF THE DAY

 

 

Kuala Lumpur, Malaysia

Hindu devotees climb the 272 stairs to the Batu Caves temple to make offerings during the Thaipusam festival

Photograph: Mohd Rasfan/AFP/Getty Images

Bogotá, Colombia

Flames rise from a forest fire in the mountains outside the city

Photograph: Guillermo Munoz/AFP/Getty Images

Ankara, Turkey

A person holds newborn rabbits left on a bridge in the city

Photograph: Anadolu/Getty Images

Market Closes for January 25^th, 2024

Market Index	Close	Change
Dow Jones	38049.13	+242.74
		+0.64%
S&P 500	4894.16	+25.61
		+0.53%
NASDAQ	15510.50	+28.58
		+0.18%
TSX	21101.54	+75.76
		+0.36%

International Markets

Market Index	Close	Change
NIKKEI	35858.38	-378.09
		-1.04%
HANG SENG	16211.96	+312.09
		+1.96%
SENSEX	70700.67	-359.64
		-0.51%
FTSE 100*	7529.73	+2.06
		+0.03%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.478	3.500
CND. 30 Year Bond	3.454	3.461
U.S.    10 Year Bond	4.1107	4.1877
U.S. 30 Year Bond	4.3643	4.4178

Currencies

BOC Close	Today	Previous
Canadian $	0.7421	0.7390
US $	1.3475	1.3531

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4609	0.6845
US $	1.0842	0.9223

Commodities

Gold	Close	Previous
London Gold Fix	2024.65	2022.95
Oil
WTI Crude Future	77.81	75.64

Market Commentary:

📈 On this day in 1853, basic financial disclosure became mandatory for all companies seeking to list their stock for trading on the New York Stock & Exchange Board.

Canada

By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.4% at 21,101.54 in Toronto.

The index advanced to the highest closing level in at least a year.

The move follows the previous session’s little change.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 1.7%.

Lundin Gold Inc. had the largest increase, rising 4.9%.
Today, 152 of 225 shares rose, while 69 fell; 6 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index rose 0.7%
* So far this week, the index rose 0.9%, heading for the biggest advance since the week ended Dec. 22
* The index advanced 2.4% in the past 52 weeks. The MSCI AC Americas Index gained 21% in the same period
* The S&P/TSX Composite is 0.3% below its 52-week high on Jan. 24, 2024 and 12.9% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.7% in the past 5 days and rose 1.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.5 on a trailing basis and 15.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.33t
* 30-day price volatility fell to 11.20% compared with 11.31% in the previous session and the average of 10.91% over the past month
================================================================
|Index Points | |Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 26.4441| 0.7| 32/9
Financials | 22.8924| 0.4| 19/8
Materials | 13.9648| 0.6| 35/15
Utilities | 10.7797| 1.3| 14/1
Industrials | 9.4143| 0.3| 18/8
Consumer Discretionary | 2.2035| 0.3| 9/4
Health Care | -0.0409| -0.1| 1/2
Information Technology | -0.2942| 0.0| 8/2
Real Estate | -1.4359| -0.3| 8/12
Consumer Staples | -3.8551| -0.4| 6/5
Communication Services | -4.3238| -0.5| 2/3
================================================================
| | |Volume VS || Index | | 20D AVG |YTD Change Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Canadian Natural Resources | 11.2100| 1.7| -45.1| 0.0
Brookfield Corp | 6.9990| 1.3| 63.8| 3.7
Canadian Pacific | | | |
Kansas | 4.5610| 0.7| -29.6| 1.2
Couche-Tard | -3.9440| -1.0| -26.4| 3.3
Shopify | -6.4040| -0.7| -21.4| 5.2
Cameco | -6.6750| -3.4| -24.0| 8.5

US
By Rita Nazareth
(Bloomberg) — Wall Street traders pushed stocks to another all-time high on speculation the Federal Reserve will be able to engineer a soft landing as the US economy remains fairly resilient and inflation shows signs of cooling.
Equities notched their sixth straight day of gains as the latest US gross domestic product data defied forecasts for a recession, bolstering the outlook for Corporate America.

While such strength implies policymakers would be in no rush to cut rates, a closely watched measure of underlying inflation coming in line with the Fed’s 2% target was seen by many as an encouraging signal.
“There are no recession concerns here, and to make matters even better, we don’t see any accompanying blowout growth in prices that are used in the GDP calculation,” said Charles Hepworth, investment director at GAM Investments. “Stronger growth without inflation is what everyone wants.”
The S&P 500 closed near the 4,900 mark.

International Business Machines Corp. soared on a bullish outlook, while Tesla Inc. sank 12% after Elon Musk’s pitch for investors to look past slower sales growth fell flat.

The chorus of Boeing Co. critics grew louder as the head of American Airlines Group Inc. called out the plane-maker over a series of quality lapses.
US 10-year yields dropped five basis points to 4.12%.

Swap contracts continued to fully price in a Fed reduction in May, while increasing the expected total cuts this year to around 140 basis points.

The euro fell after President Christine Lagarde’s muted affirmation that the European Central Bank may begin lowering rates from around mid-2024 was taken by markets as a sign that earlier moves are very much in play.
A survey conducted by 22V Research shows 50% of respondents have lowered their recession expectations since before the December Fed Meeting.

When it comes to prospects for 2024 real GDP growth, most investors surveyed expect it will be in-line or stronger than consensus.
The US economy’s fourth-quarter growth trounced forecasts as cooling inflation fueled consumer spending, capping a surprisingly strong year.

GDP increased at a 3.3% annualized rate.

A closely watched measure of underlying inflation rose 2% for a second straight quarter.
Rob Swanke at Commonwealth Financial Network says the data should provide enough ammo for Fed officials to maintain a dovish stance — even if they keep rates where they are.

To Callie Cox at eToro, while a recession isn’t out of the question, it looks like the Fed is achieving a soft landing.
David Russell at TradeStation says Fed Chair Jerome Powell “can give himself a pat on the back as Goldilocks takes over.”
“It is hard to argue that the economy isn’t strong,” said Chris Zaccarelli at Independent Advisor Alliance. “The stock market will continue to rally as long as the economy stays out of recession and consumers continue to spend – and that is even without the Fed cutting rates. However, if the Fed starts cutting rates, that will be an additional tailwind to this market, which continues to surprise to the upside.”
The market’s resilience suggests that investors are satisfied to see US data resilience despite elevated rates, according to Fawad Razaqzada at City Index and Forex.com.

They are confident that peak rates have been reached, and policy will eventually loosen — albeit a bit later than initially expected, he added.
The S&P 500 finished at an all-time high for the first time in two years on Friday, marking a crucial milestone in the resurgence of the US stock market.

It’s been a dizzying stretch for equities, triggered by falling inflation and the possibility that the Fed will cut rates in 2024.
With only a few days left for the end of January, the S&P 500 has already blown past the Wall Street consensus over where the index will finish the year.
On Wednesday, the gauge surpassed 4,867, the average level where forecasters in a Bloomberg survey pegged it 11 months from now.
With the US stock market at a record, the obvious question for many investors right now is how much firepower is left in the rally that began last year.

Whenever the S&P 500 has climbed from a bear market to new heights, returns in the subsequent six and 12 months have been handily above average, Bloomberg Intelligence data going back to 1950 showed.
BI’s analysis of market performance after the US stock benchmark hit a fresh high found the median forward six-month return was roughly 9.2%, above the median 6.3% return for all half-year periods going back more than 70 years. The same pattern is seen in forward 12-month performance, with median returns at 15% after a new all-time high versus just 13% in overlapping yearlong time frames.
“The prevailing trend is undeniably bullish, and the markets are currently adhering to a ‘buy-the-dip’ mentality, at least for the time being,” Razaqzada added. “However, there are signs that the rally may be stretching thin at these levels. So, there is the potential for some profit-taking around current levels.”
Elsewhere, oil rose to the highest in eight weeks, propelled by falling US inventories, Chinese stimulus and an attack on a Russian refinery.

Corporate Highlights:
* Alphabet Inc., Amazon.com Inc. and Microsoft Corp. must provide information to the US Federal Trade Commission on their investments and partnerships with artificial intelligence startups Anthropic PBC and OpenAI Inc. as part of an agency study announced Thursday.
* Apple Inc. is embarking on a historic overhaul of its iOS, Safari and App Store offerings in the European Union, aiming to placate regulators set to impose tough new antitrust rules.
* Microsoft Corp. will lay off 1,900 people across its video-game divisions including at Activision Blizzard, which it purchased for $69 billion in an acquisition that closed late last year.
* LVMH sales rose at the end of last year as wealthy shoppers treated themselves to the group’s pricey handbags and Champagne, a sign of resilience at the world’s largest luxury conglomerate.
* American Airlines Group Inc. expects profit this year to beat Wall Street’s estimates as it benefits from strength in demand for international flights and improved operating performance.
* Southwest Airlines Co. again trimmed growth plans for this quarter in response to rising costs and an industrywide glut of flights that’s pulling down fares.
* Alaska Air Group Inc. expects slower growth this year and a financial hit of $150 million after a midair accident led to the grounding of a portion of its Boeing Co. 737 planes.
* PayPal Holdings Inc. rolled out several product enhancements that failed to stem pessimism about the payments firm’s earnings prospects.
* Comcast Corp. reported earnings and revenue that beat analysts’ estimates as broadband customers spent more on pricier services.
* Private Medicare plans that drove years of growth for US health insurers are getting less profitable and may cost seniors more money, Humana Inc.’s results showed, sending shares down across the sector.

Key events this week:
* Japan Tokyo CPI, Friday
* Bank of Japan issues minutes of policy meeting, Friday
* US personal income/spending, PCE deflator, pending home sales, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.1%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.4% to $1.0839
* The British pound fell 0.2% to $1.2705
* The Japanese yen fell 0.2% to 147.74 per dollar
Cryptocurrencies
* Bitcoin rose 0.3% to $39,891.13
* Ether rose 0.6% to $2,228.35
Bonds
* The yield on 10-year Treasuries declined five basis points to 4.12%
* Germany’s 10-year yield declined five basis points to 2.29%
* Britain’s 10-year yield declined three basis points to 3.98%
Commodities
* West Texas Intermediate crude rose 2.9% to $77.25 a barrel
* Spot gold rose 0.3% to $2,019.19 an ounce
This story was produced with the assistance of Bloomberg Automation.

–With assistance from Alexandra Semenova, Rheaa Rao and Liz Capo McCormick.

Have a lovely evening.

 

Be magnificent!

As ever,

 

Carolann

Sometimes integrity is the subtlest and most effective strategy of all. –John Marshall, 1755-1835.

 

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 24/2 – an auspicious date!

 

January 24, 1984: The Apple Macintosh computer goes on sale – the first commercially successful personal computer using a graphical user interface and a mouse.  Forty years later, Apple is valued at $3 trillion US$.

January 24, 2008: French bank Société Générale announced it had uncovered a $7.14 billion fraud by a single futures trader.  Go to article >>

On Jan. 24, 1848: James W. Marshall discovered a gold nugget at Sutter’s Mill in northern California, a discovery that led to the gold rush of ’49.

 

1935: First canned beer.

Edith Wharton, b. 1862.

John Belushi, b. 1949.

 

A look at what else happened in history on January 24.

 

Watch the world through different animals’ eyes in this stunning high-tech footage

Cameras recorded footage in red, blue, green and UV channels simultaneously, with openly available software processing the raw footage and converting it into different kinds of “animal vision,” showing us how bees, birds, mice and dogs might see the world. Read More.

 

‘Incredibly rare’ 2nd-century Roman armor pieced together like an ‘ancient jigsaw puzzle’  

Conservators in the U.K. have painstakingly reassembled a piece of Roman armor that was broken into more than 100 pieces.  Read More.

 

Heat bursts from Iceland’s recent eruptions in eerie NASA satellite image

Satellite images reveal the heat still radiating from the reawakened volcano in Iceland. Read More.

 

Mysterious ‘sudden death’ of quantum vortices in a superconductor stumps scientists

The sudden disappearance of quantum fluctuations inside an atom-thin 2D superconductor has left scientists baffled. Read More.

 

Iconic baseball players elected to the Hall of Fame
Former MLB players Adrián Beltré, Joe Mauer and Todd Helton were elected to the National Baseball Hall of Fame on Tuesday. Read more about their storied careers. 

 

Netflix gains more than 13 million subscribers in the fourth quarter
The company also declared its password-sharing crackdown a success.

 

The best dressed stars so far at Haute Couture Week 2024
Celebrities, editors and designers are congregating in Paris this week to see showcases of the industry’s most elite and decadent looks.

 

British zoo has a new plan to rehabilitate its potty-mouthed parrots
A British wildlife park has hatched a plan to rehabilitate its cuss-happy parrots after they unleashed a tide of expletives.

 

500,000:  That’s how many people visited India’s new Lord Ram temple on Tuesday — the first day the massive complex was open to the public. One of Hinduism’s most revered deities was consecrated at the temple a day earlier in a controversial ceremony that was presided over by India’s Prime Minister Narendra Modi.

 

PHOTOS OF THE DAY

Gerlache strait, Antarctica

The tail of a humpback whale in the sea between the Palmer archipelago and the Antarctic peninsula. Scientists are analysing the condition of the sea and monitoring the species inhabiting it

Photograph: Juan Barreto/AFP/Getty Images

Ahmedabad, India

Students of the Swaminarayan Gurukul school demonstrate for the media a purification bath ritual, which is believed to absolve them of their sins

Photograph: Ajit Solanki/AP

Paris, France

Models present creations by Yuima Nakazato during the women’s haute-couture spring/summer 2024 fashion week

Photograph: Miguel Medina/AFP/Getty Images

Market Closes for January 24^th, 2024

Market Index	Close	Change
Dow Jones	37806.39	-99.06
		-0.26%
S&P 500	4868.55	+3.95
		+0.08%
NASDAQ	15481.92	+55.98
		+0.36%
TSX	21025.78	-8.81
		-0.04%

International Markets

Market Index	Close	Change
NIKKEI	36227.08	0.60
		—
HANG SENG	15899.87	+545.89
		+3.56%
SENSEX	71060.31	+689.76
		+0.98%
FTSE 100*	7527.67	+41.94
		+0.56%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.500	3.475
CND. 30 Year Bond	3.461	3.418
U.S.    10 Year Bond	4.1877	4.1378
U.S. 30 Year Bond	4.4178	4.3716

Currencies

BOC Close	Today	Previous
Canadian $	0.7390	0.7429
US $	1.3531	1.3461

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4714	0.6796
US $	1.0874	0.9197

Commodities

Gold	Close	Previous
London Gold Fix	2022.95	2021.60
Oil
WTI Crude Future	75.64	74.77

Market Commentary:

📈 On this day in 1848, workers dredged a stream to speed up the waterflow into the sluiceway of John Sutter’s sawmill in Coloma, Calif. and struck a bed of soft yellow rock. The California gold rush had begun. 

Canada

By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite declined slightly to 21,025.78 in Toronto, ending a 4-day gain.

The loss follows the previous session’s increase of 0.5%.
Canadian National Railway Co. contributed the most to the index decline, decreasing 1.8%.

BlackBerry Ltd. had the largest drop, falling 17.9%.
Today, 122 of 225 shares fell, while 101 rose; 9 of 11 sectors were lower, led by materials stocks.
Insights
* This month, the index rose 0.3%
* The index advanced 1.9% in the past 52 weeks. The MSCI AC Americas Index gained 20% in the same period
* The S&P/TSX Composite is at its 52-week high and 12.5% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.6% in the past 5 days and rose 0.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.6 on a trailing basis and 15.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.33t
* 30-day price volatility little changed to 11.31% compared with 11.31% in the previous session and the average of 10.90% over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -23.6931| -1.1| 16/35
Industrials | -14.2299| -0.5| 9/17
Communication Services | -5.7083| -0.7| 0/5
Real Estate | -3.7886| -0.7| 6/15
Consumer Discretionary | -3.3880| -0.4| 6/7
Information Technology | -3.0210| -0.2| 3/7
Utilities | -1.4144| -0.2| 4/10
Health Care | -1.0668| -1.7| 0/4
Consumer Staples | -0.9458| -0.1| 2/9
Financials | 23.0455| 0.4| 19/8
Energy | 25.3896| 0.7| 36/5
================================================================
| | |Volume VS| YTD |Index Points | | 20D AVG | Change Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian National | -12.4500| -1.8| 69.3| -0.1
Barrick Gold | -6.7520| -2.6| 14.2| -12.2
Agnico Eagle Mines | -6.1430| -2.6| 87.4| -8.9
Canadian Natural Resources | 6.5910| 1.0| -18.8| -1.7
Bank of Montreal | 6.7550| 1.0| 24.4| -0.8
TD Bank | 9.2010| 0.9| -55.1| -3.9

US
By Rheaa Rao
(Bloomberg) — US stock indexes ended Wednesday off session highs, after earnings-related optimism fueled by Netflix Inc. moderated and investors geared up for another batch of key quarterly results.
The S&P 500 was little changed when markets closed while the tech-heavy Nasdaq 100 jumped 0.5%.

US Treasury yields rose, with the 30-year rate climbing to its highest level so far this year.

The Bloomberg Dollar Spot Index trimmed earlier declines.
Tesla Inc. and International Business Machines Corp. report results after the closing bell.

Investors are also getting ready  to parse a slew of US economic data — including gross domestic product — on Thursday, while continuing to mull when the Federal Reserve will cut interest rates. 
“Frankly, everything depends on the incoming data now and there are a lot of potentially significant releases over the next few weeks that could swing the odds of a March rate cut in either direction,” Paul Ashworth, chief North America economist at Capital Economics, wrote. “We still think the Fed will lower rates by 25 basis points at that upcoming meeting.”
US data that released earlier on Wednesday showing business activity expanded in January by the most in seven months bodes well for stocks, according to Renaissance Macro’s Neil Dutta.
“Growth is up and inflation is down. The former puts a ceiling on how many cuts the Federal Reserve will do while the latter means the Fed still ends up cutting,” he said. “Very good scenario for equity markets.”
Earlier, Bank of Canada held its key interest rate at 5%, as expected, and signaled it’s done hiking.

Also on the roster this week is European Central Bank’s policy meeting on Thursday.
Euro-area bond yields slipped earlier after data showed business activity contracted in January for the eighth month. 
Elsewhere, industrial metals prices received a boost after China signaled plans to stimulate its economy by cutting the reserve requirement ratio for banks.

The move should allow Chinese banks to step up lending and their purchases of government bonds.
The news also supported Brent crude around $80 a barrel.   

Key events this week:
* Eurozone ECB rate decision, Thursday
* Germany IFO business climate, Thursday
* US GDP, initial jobless claims, durable goods, wholesale inventories, new home sales, Thursday
* Japan Tokyo CPI, Friday
* US personal income & spending, Friday
* Bank of Japan issues minutes of policy meeting, 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 0.5%
* The Dow Jones Industrial Average fell 0.3%
* The MSCI World index rose 0.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.0880
* The British pound rose 0.2% to $1.2717
* The Japanese yen rose 0.5% to 147.62 per dollar
Cryptocurrencies
* Bitcoin rose 0.7% to $39,485.13
* Ether fell 0.1% to $2,199.39
Bonds
* The yield on 10-year Treasuries advanced five basis points to 4.17%
* Germany’s 10-year yield declined one basis point to 2.34%
* Britain’s 10-year yield advanced two basis points to 4.01%
Commodities
* West Texas Intermediate crude rose 1.3% to $75.35 a barrel
* Spot gold fell 0.8% to $2,012.42 an ounce
This story was produced with the assistance of Bloomberg Automation.

–With assistance from John Viljoen, Cristin Flanagan, Julien Ponthus, Sujata Rao, Felice Maranz and Isabelle Lee.

Have a lovely evening.

 

Be magnificent!

 

As ever,

 

Carolann

Worrying is like paying interest on a debt that may never come due. –Will Rogers, 1879-1935.

 

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:

January 23, 1849: US Patent granted for an envelope-making machine to Jesse K. Park and Cornelius S. Watson.

January 23, In 1930, Clyde Tombaugh photographed the dwarf planet Pluto, and subsequently confirmed 3 weeks later.  Go to article >>.

On Jan. 23, 1845: Congress decided all national elections would be held on the first Tuesday after the first Monday in November.

 

A look at what else happened in history on January 23.

 

Edouard Manet, artist, b.1932.

Elizabeth Blackwell, first woman MD, b.1849.

John Hancock, statesman, b. 1737

 

These are the hotels where HBO is filming The White Lotus Season 3.

 

Netflix paid $5 billion for wrestling’s “Raw” in bet on live events.

 

 

Blood test that screens for Alzheimer’s may be a step closer to reality
Researchers say this new blood test can be used to screen for Alzheimer’s disease with “high accuracy,” even before symptoms begin to show.

 

New sanctions on Russian diamonds
Nearly two years after Russia invaded Ukraine, a group of the world’s biggest economies have imposed a rolling ban on stones from the country. Here’s how it will change the global trade in gems.

 

How did the middle finger become so offensive?
The naughty middle finger gesture — or “flipping the bird” — was likely developed by Greeks around 2,500 years ago to offend each other. Read more about the most controversial digit.

 

Man explains why he stole ‘Wizard of Oz’ ruby slippers from museum
New court documents reveal why a Minnesota man stole the magical shoes used in the “The Wizard of Oz.”

 

“DeSantis posted a video announcing that he was dropping out, and during it he attributed a quote about failure to Winston Churchill, but Churchill never actually said it. See, this is what happens when you ban textbooks.” — JIMMY FALLON

 

“Yeah, when he saw the latest polls, DeSantis clicked his high heels together three times and said, ‘There’s no place like home, there’s no place like home, there’s no place like home.’” — JIMMY FALLON

 

PHOTOS OF THE DAY

Plant life category: Pandora, by Marcio Cabral

‘This panorama shows the beauty of Chapada dos Veadeiros, a Brazilian national park that hosts a rich biodiversity and breathtaking landscapes. The white flowers that stand out in the foreground are a rare species of Paepalanthus, a genus of plants endemic to the region. They were illuminated by a scurion lamp to create a contrast with the dark sky. In the background, the Milky Way curves over the hills, revealing the colours and shapes of stars and nebulae. This pano was taken with a specialised camera for astrophotography’

Photograph: Marcio Cabral

 

 

Osona, Spain

Water levels are low at the Sau reservoir, which is at 5% of its capacity

Photograph: Marc Asensio/NurPhoto/Rex/Shutterstock

Winner in the funny nature category: Monday, by Panisara Sripratoom

‘A spotted owlet (Athene brama) emerging from a hollow within a yellow flame tree situated in the university campus. This species of owl is characterised by its small size, primarily nocturnal feeding behaviour and frequent occurrence in urban environments. Without a sharp eye, this spotted owlet goes unnoticed … These spotted owlets, somehow, have shown their adaptability, finding a habitat within this modified urban environment’

Photograph: Panisara Sripratoom

Market Closes for January 23^rd, 2024

Market Index	Close	Change
Dow Jones	37905.45	-96.36
		-0.25%
S&P 500	4864.60	+14.17
		+0.29%
NASDAQ	15425.94	+65.65
		+0.43%
TSX	21034.59	+110.29
		+0.53%

International Markets

Market Index	Close	Change
NIKKEI	36374.11	-143.46
		-0.39%
HANG SENG	15353.98	+392.80
		+2.63%
SENSEX	70370.55	-1053.10
		-1.47%
FTSE 100*	7485.73	-1.98
		-0.03%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.475	3.459
CND. 30 Year Bond	3.418	3.402
U.S.    10 Year Bond	4.1378	4.1072
U.S. 30 Year Bond	4.3716	4.3213

Currencies

BOC Close	Today	Previous
Canadian $	0.7429	0.7421
US $	1.3461	1.3476

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4613	0.6843
US $	1.0856	0.9212

Commodities

Gold	Close	Previous
London Gold Fix	2021.60	2028.55
Oil
WTI Crude Future	74.77	75.19

 

Market Commentary:

📈 On this day in 2002, Kenneth Lay resigned as chairman and chief executive of Enron. His departure came a little over a month after the energy-trading powerhouse filed for bankruptcy—then the biggest in U.S. history.

Canada

By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 0.5%, or 110.29 to 21,034.59 in Toronto.

The index advanced to the highest closing level since Jan. 15.
Shopify Inc. contributed the most to the index gain, increasing 1.0%.

Iamgold Corp. had the largest increase, rising 15.1%.
Today, 163 of 225 shares rose, while 59 fell; 10 of 11 sectors were higher, led by materials stocks.
Insights
* This month, the index rose 0.4%
* The index advanced 2% in the past 52 weeks. The MSCI AC Americas Index gained 20% in the same period
* The S&P/TSX Composite is 0.5% below its 52-week high on Jan. 12, 2024 and 12.5% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 0.4% in the past 5 days and rose 0.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.5 on a trailing basis and 15.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.31t
* 30-day price volatility rose to 11.31% compared with 11.25% in the previous session and the average of 10.88% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 44.6155| 2.1| 43/8
Energy | 21.3467| 0.6| 32/8
Information Technology | 13.2599| 0.7| 6/4
Industrials | 12.9703| 0.4| 21/5
Consumer Discretionary | 6.1782| 0.8| 8/4
Consumer Staples | 5.5886| 0.6| 9/2
Communication Services | 4.5382| 0.6| 4/1
Financials | 3.4367| 0.1| 18/9
Real Estate | 0.3308| 0.1| 15/6
Health Care | 0.1022| 0.2| 3/1
Utilities | -2.0766| -0.3| 4/11
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 8.8480| 1.0| -33.5| 6.0
Barrick Gold | 6.6290| 2.6| 40.5| -9.9
Constellation Software | 5.1380| 1.0| -2.3| 11.4
Suncor Energy | -2.3550| -0.6| -56.4| 0.0
Bank of Montreal | -3.4280| -0.5| 51.7| -1.8
Bank of Nova Scotia | -5.4790| -1.1| -52.3| -5.2

US

By Cristin Flanagan
(Bloomberg) — US stocks eked out a gain Tuesday, setting fresh closing highs ahead of an onslaught of company reports that promise insight into the state of the global economy. 
The S&P 500 and Nasdaq 100 both closed at all-time highs for the second day this week, while the cyclically-oriented Dow Jones Industrial Average slid 0.3%.

United Airlines Holdings Inc., Procter & Gamble Co., Verizon Communications Inc. all advanced on upbeat earnings reports while 3M Co. and Johnson & Johnson fell following disappointing guidance.
In post-market trading, Netflix Inc. jumped more than 7% after reporting subscriber growth that topped estimates.

Texas Instruments Inc. tumbled roughly 4% after a disappointing revenue forecast, its chipmaking rivals also slid. 
Investors are awaiting the results from the Republican presidential primary after voters in New Hampshire hit the polls Tuesday.  
Equities have largely been immune to the Federal Reserve’s warnings that interest-rate cuts are a ways off.
Instead investors have cheered the economy’s resilience even after the most aggressive policy-tightening cycle in decades.  
But some corners of Wall Street are starting to question if the rally will endure as swaps traders in the US rein in bets of a March rate cut. 
“The excitement is kind of gone at this point and everybody’s sobering up a little bit after the pivot party,”
Emily Roland, the co-chief investment strategist of John Hancock Investment Management, said by phone. “Multiple expansions are starting to get a little tapped out here.”
“Recent weeks have seen an increasingly optimistic narrative in markets,” said Henry Allen, a strategist at Deutsche Bank. “But can this be sustained? When financial conditions get as accommodative as they are right now, it doesn’t tend to last long.”  “The data has been impressively resilient,” he added. “But we know that investors will eventually adjust for repeated upside surprises.”
Goldman Sachs warns that fast-twitch traders may be forced to sell over the next few sessions after building $129 billion in long positions. 
Treasury yields mostly edged higher Tuesday with the benchmark 10-year at 4.14%.

The rate on policy-sensitive two-year fell 1 basis point to 4.38%.
“The bounce in 2-year yields off the YTD lows achieved last week should embolden dip buyers,” BMO Capital Markets’ Vail Hartman wrote.
US-listed Chinese shares gained after Bloomberg News reported Beijing is considering a package of measures to stabilize the falling stock market. 
Central banks are in focus this week.

While the Bank of Japan held rates steady, Governor Kazuo Ueda said the certainty of achieving its projections has continued to gradually increase.

That language supports the prevailing view among economists that the BOJ will raise rates at some point in the first part of this year. 
On Thursday, investor attention will shift to the European Central Bank’s meeting and whether officials there may indicate a start to policy easing.

The US will also get some of final pieces of data ahead of next week’s FOMC meeting with a fourth-quarter GDP readout Thursday and the Fed’s preferred gauge of inflation on Friday.
Bitcoin slumped for a second day — retail investors have been growing more bearish on the world’s largest cryptocurrency, according to a Deutsche Bank report. 
Meanwhile, West Texas Intermediate crude dipped below $75 a barrel after the US advised caution for vessels transiting the Red Sea, but didn’t advise pausing shipping traffic. 

Corporate Highlights
* Apple Inc., reaching a make-or-break point in its decade-old effort to build a car, has pivoted to a less ambitious design with the intent of finally bringing an electric vehicle to market.
* Alibaba Group Holding Ltd. shares jumped after the New York Times reported that founder Jack Ma has been buying up shares in the company.
* Johnson & Johnson shares slid after the company said drug sales will be lower in the second half of the year than the first.
* Verizon gave guidance for 2024 adjusted earnings per share that topped the average analyst estimates.
* Homebuilder D.R. Horton Inc. sank after reporting weaker-than-expected quarterly orders.
* Coinbase Global Inc. fell after JPMorgan cut its recommendation on the cryptocurrency platform operator’s stock to underweight.

Key events this week:
* New Hampshire holds first-in-the-nation presidential primary, Tuesday
* Canada rate decision, Wednesday
* Eurozone S&P Global Services & Manufacturing PMI, Wednesday
* US S&P Global Services & Manufacturing PMI, Wednesday
* Eurozone ECB rate decision, Thursday
* Germany IFO business climate, Thursday
* US GDP, initial jobless claims, durable goods, wholesale inventories, new home sales, Thursday
* Japan Tokyo CPI, Friday
* US personal income & spending, Friday
* Bank of Japan issues minutes of policy meeting, Friday

Some of the main moves in markets:

Stocks
* The S&P 500 rose 0.3% 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 0.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.3% to $1.0850
* The British pound fell 0.2% to $1.2686
* The Japanese yen fell 0.2% to 148.36 per dollar
Cryptocurrencies
* Bitcoin fell 1.7% to $39,120.72
* Ether fell 5.5% to $2,196.33
Bonds
* The yield on 10-year Treasuries advanced three basis points to 4.13%
* Germany’s 10-year yield advanced six basis points to 2.35%
* Britain’s 10-year yield advanced eight basis points to 3.99%
Commodities
* West Texas Intermediate crude fell 0.3% to $74.53 a barrel
* Spot gold rose 0.3% to $2,028.72 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee, Sujata Rao, Jason Scott, Divya Patil and Winnie Hsu.

Have a lovely evening.

 

Be magnificent!

 

As ever,

 

Carolann

Know how sublime a thing it is to suffer and be strong. –Henry Wadsworth Longfellow, 1807-1882.

 

 

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

(C): 250.881.0801

Toll Free: 1.877.430.5895

Fax: 778.430.5828

www.carolannsteinhoff.com

 

Dear Friends,

 

Tangents: Happy Monday.

January 22, 1976 The supersonic Concorde jet was put into service by Britain and France.  Go to article >>

January 22, 1973: The US Supreme Court legalizes abortion (Roe v. Wade).  This  was overturned by the conservative-majority Supreme Court in 2022.

 

Francis Bacon, statesman, b. 1561.

Lord Byron, poet, b. 1788.

George Balanchine, choreographer, b. 1904.

 

A 20-year-old amateur golfer just won a PGA Tour event
But he’s not allowed to collect the $1.5 million prize. 

 

Do humans need to hibernate, too?
Here’s what experts think about humans’ winter sleep patterns and whether you should make any adjustments.

 

Librarian helps teens get news ‘in a smarter way’
Media literacy is more than spotting fake news. Read how one librarian gives teenagers the tools to decide what to trust.

 

PHOTOS OF THE DAYBig waves in Blackpool

Photograph: Danny Lawson/PA

La Paz, Bolivia

A cucumber and a chuta cholero hug during the Desentierro del Pepino (‘unearthing the cucumber’) festival to mark the beginning of carnival

Photograph: Gastón Brito/Getty Images

Custer, South Dakota

A firework display at the 11th annual Burning Beetle event, created in response to a mountain pine beetle infestation

Photograph: Matt Gade/AP

Market Closes for January 22^nd, 2024

Market Index	Close	Change
Dow Jones	38001.81	+138.01
		+0.36%
S&P 500	4850.43	+10.62
		+0.22%
NASDAQ	15360.29	+49.32
		+0.32%
TSX	20924.30	+17.78
		+0.09%

International Markets

Market Index	Close	Change
NIKKEI	36546.95	+583.68
		+1.62%
HANG SENG	14961.18	-347.51
		-2.27%
SENSEX	71423.65	-259.58
		-0.36%
FTSE 100*	7487.71	+25.78
		+0.35%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.459	3.492
CND. 30 Year Bond	3.402	3.424
U.S.    10 Year Bond	4.1072	4.1226
U.S. 30 Year Bond	4.3213	4.3285

Currencies

BOC Close	Today	Previous
Canadian $	0.7421	0.7446
US $	1.3476	1.3430

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4667	0.6818
US $	1.0084	0.9188

Commodities

Gold	Close	Previous
London Gold Fix	2028.55	2013.20
Oil
WTI Crude Future	75.19	73.41

Market Commentary:

📈 On this day in 1968, the New York Stock Exchange closed 90 minutes early. The closure was to help inundated trading clerks catch up on a “deluge of paper work that has resulted from a recent sustained period of unusually heavy trading,” The Wall Street Journal reported.

Canada

By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 20,924.30 in Toronto.
Brookfield Corp. contributed the most to the index gain, increasing 1.4%.

Canada Goose Holdings Inc. had the largest increase, rising 5.5%.
Today, 135 of 225 shares rose, while 88 fell; 5 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index was little changed
* The index advanced 2.1% in the past 52 weeks. The MSCI AC Americas Index gained 21% in the same period
* The S&P/TSX Composite is 1% below its 52-week high on Jan. 12, 2024 and 11.9% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 0.7% in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.4 on a trailing basis and 15.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.31t
* 30-day price volatility little changed to 11.25% compared with 11.25% in the previous session and the average of 10.88% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 25.6651| 0.4| 20/6
Information Technology | 5.9468| 0.3| 8/2
Real Estate | 4.5813| 0.9| 18/3
Consumer Discretionary | 2.0619| 0.3| 10/3
Health Care | 0.5420| 0.9| 3/1
Energy | -0.5673| 0.0| 26/15
Utilities | -2.5142| -0.3| 8/6
Materials | -2.7142| -0.1| 22/30
Consumer Staples | -3.6558| -0.4| 5/6
Industrials | -5.0735| -0.2| 14/12
Communication Services | -6.4884| -0.8| 1/4
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Brookfield Corp | 7.5990| 1.4| -15.4| 2.0
TD Bank | 7.2840| 0.7| -48.5| -4.5
Shopify | 6.4040| 0.7| -10.7| 4.9
Canadian National | -5.0600| -0.7| 28.6| 1.0
BCE | -5.1670| -1.5| 1.1| 5.8
Constellation Software | -5.3980| -1.1| -1.3| 10.2

US

By Rita Nazareth
(Bloomberg) — Stocks eked out gains while closing at fresh records, with traders weighing strong economic signals amid warnings that the market has run too far, too fast.
Equities are shaking off a rocky start to the year on bets the Federal Reserve will cut rates and the artificial-intelligence boom will keep fueling profit growth.

Meanwhile, earnings season kicks into high gear this week, with companies including Netflix Inc., Tesla Inc. and Intel Corp. due to report their numbers.
“The record-high breakout we saw on Friday is attracting momentum,” said Mark Hackett at Nationwide. “Though we may not be shooting straight to the moon, the current environment is encouraging and a good reminder for investors that cash isn’t always king.”
The S&P 500 hovered near 4,850.

Treasury 10-year yields declined two basis points to 4.10%.

The dollar wavered.
“The story is changing for bulls,” said David Donabedian at CIBC Private Wealth US. “Investor optimism had been driven by the belief there would be aggressive rate cuts by the Fed. Now investor belief has pivoted to view the economy as bullet-proof.  No matter how high interest rates go, the economy will continue to glide right through.”
Last week’s record close for US stocks has pulled valuations back to the highs seen last July.

But a closer look shows that the market isn’t as expensive as it appears, according to Citigroup Inc.’s Scott Chronert.
Gains in Apple Inc., Microsoft Corp., Nvidia Corp., Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Tesla Inc. have powered the resurgence on Wall Street.
The equally weighted version of the S&P 500 strips out some of their outsized influence and results in a ratio of around 16 times forward earnings, a discount of 17% to the benchmark’s standard valuation.
“With AI set to remain the key theme driving global tech stocks again this year and the rest of the decade, we maintain our preference for the semiconductor and software sectors and see opportunities in those involved in memory and AI edge-computing,” said Solita Marcelli at UBS Global Wealth Management.
“We may just get the upside follow-through that we too to signal that last week’s breakout to new all-time highs in the S&P 500 and the Nasdaq 100 has been confirmed,” said Matt Maley at Miller Tabak + Co. “We do need to point out that both indices are reaching overbought levels, so they could take a breather at any time. However, as long as any ‘breathers’ do not become severe reversals, the bulls have a lot going for them right now.”
The Ned Davis Research Leading Indicator Model — based on 10 indicators that typically lead the S&P 500  — has already been flashing bullish for most of the past year.

The majority of the components are price-based and include one on sentiment with two others on macroeconomics. 
Although the model is just off its highs, with four of the seven bullish indicators starting to weaken including financials, volume demand and weekly new highs on the New York Stock Exchange, the key gauge still points to equity strength.
To Lisa Shalett at Morgan Stanley Wealth Management, with forward multiples already at historic peaks and earnings forecasts for 12 months forward ambitious, stock gains may stall in 2024 — as better earnings are met with lower valuation multiples, characteristic of a midcycle or soft-landing environment.
Even as the S&P 500 closed Friday at an all-time high, money managers and analysts are contending with data that signals US economic resilience and Fed officials who’ve pushed back against reducing interest rates too soon.
The latest warning for investors unleashing dovish monetary wagers across the board: Two thirds of Bloomberg Markets Live Pulse respondents said that betting on early monetary easing is the “most foolish” among popular trades heading into 2024.
“The push and pull between interest rates and the markets have been discussed ad nauseam, but looking back over the past two years, it has been the Fed’s actions that have led the markets, said Paul Nolte at Murphy & Sylvest Wealth Management.  “Will the economy catch a chill if the Fed keeps rate cuts on ice? It will depend largely on the earnings season that gets into full swing this week.”
Strategists at Wall Street’s two top-tier banks are split on the outlook for profit margins: Goldman Sachs Group Inc. sees falling inflation boosting the key metric, while JPMorgan Chase & Co. warned companies are quickly losing pricing power.
Yung-Yu Ma at BMO Wealth Management is betting the stock market outlook will brighten by the second half of the year as the Fed’s rate cuts are likely to begin and companies and consumers look ahead to a better spending environment.  “We believe the Fed will cut rates just three or four times in 2024,” he noted. “Ultimately, the short-term interest rate trajectory continuing to point downward is more important than how many cuts take place in 2024 versus what gets pushed out into 2025. If the end of 2024 sees both growth acceleration and continued low inflation, that will set up an especially favorable backdrop for stocks.”

Corporate Highlights:
* Archer-Daniels-Midland Co. plunged after the US agricultural trading giant suspended its chief financial officer and cut its earnings outlook pending an investigation into its accounting practices.
* Sunoco LP, a US gas station owner, agreed to acquire pipeline and fuel storage company NuStar Energy LP for about $7.3 billion in a move to diversify its business and buy up a key part of its supply chain.
* Digital World Acquisition Corp., the blank-check firm seeking to take Donald Trump’s media company public, surged after Ron DeSantis dropped out of the 2024 US presidential race and endorsed Trump.
* Arkhouse Management Co. has asked Macy’s Inc. for access to more financial information after the US department store operator rejected a $5.8 billion takeover offer from the investment firm and Brigade Capital Management.
* US authorities are investigating B. Riley Financial Inc.’s deals with a key client who was linked to a securities fraud, and the use of his assets to help the investment bank obtain a loan from Nomura Holdings Inc., according to people familiar with the matter.
* Gilead Sciences Inc. slid after its drug Trodelvy failed to meet a key goal in a study of patients with advanced lung cancer.
* Scrutiny of Boeing Co.’s manufacturing quality expanded after federal regulators told airlines to check the door plugs on a second 737 model, where operators have also found issues with fasteners.
* Amer Sports Inc., the maker of Wilson tennis rackets and Salomon ski boots, is seeking to raise as much as $1.8 billion in what would be one of the year’s first major initial public offerings.

Key events this week:
* Japan BOJ rate decision, Tuesday.
* Eurozone consumer confidence, Tuesday.
* New Hampshire holds first-in-the-nation presidential primary, Tuesday.
* European Central Bank issues bank lending survey, Tuesday.
* Canada rate decision, Wednesday.
* Eurozone S&P Global Services & Manufacturing PMI, Wednesday.
* US S&P Global Services & Manufacturing PMI, Wednesday.
* Eurozone ECB rate decision, Thursday.
* Germany IFO business climate, Thursday.
* US GDP, initial jobless claims, durable goods, wholesale inventories, new home sales, Thursday.
* Japan Tokyo CPI, Friday.
* US personal income & spending, Friday.
* Bank of Japan issues minutes of policy meeting, Friday.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average rose 0.4%
* The MSCI World index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.1% to $1.0885
* The British pound was little changed at $1.2709
* The Japanese yen was little changed at 148.05 per dollar
Cryptocurrencies
* Bitcoin fell 3.9% to $40,127.03
* Ether fell 5.5% to $2,337.08
Bonds
* The yield on 10-year Treasuries declined two basis points to 4.10%
* Germany’s 10-year yield declined five basis points to 2.29%
* Britain’s 10-year yield declined two basis points to 3.90%
Commodities
* West Texas Intermediate crude rose 2.4% to $75.19 a barrel
* Spot gold fell 0.4% to $2,020.87 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Denitsa Tsekova, Kasia Klimasinska, Michael Msika, Sujata Rao, John Viljoen, Jessica Menton, Elena Popina and Matt Turner.

Have a lovely evening.

 

Be magnificent!

 

As ever,

 

Carolann

There is no way to happiness.  Happiness is the way. –Thich Nhat Hanh, 1926-2022.

 

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. January 19, 1363: King Edward III introduces his Sumptuary Laws, restricting what people ate and wore to preserve social status. 2001:  In a deal sparing himself possible indictment, President Bill Clinton acknowledged for the first time making false statements under oath about Monica Lewinsky; he also surrendered his law license for five years. Go to article >> January 19th, 1870: Tin can patented. Dogen, poet, b.1200. Robert E. Lee, Confederate general, b. 1807. Edgar Allen Poe, poet, b. 1809. Edgar Helms, founder of Goodwill, b. 1863. Paul Cezanne, artist, b. 1839 Janis Joplin, singer, b. 1943. ‘Extremely rare’ 2,500-year-old broken silver coin unearthed near Jerusalem The find is rare evidence that such early coins were being used for commerce in the region. Read More. Mystery of Siberia’s giant exploding craters may finally be solved Giant exploding craters only known to exist on Russia’s permafrost-covered Yamal and Gydan peninsulas may result from a specific set of conditions not found elsewhere in the Arctic. Read More. Mysterious deep-space object could be the smallest black hole ever discovered A newly discovered mystery object could be the heaviest neutron star ever seen, the smallest black hole, or something completely new to science. Read More. Forensic scientists have a new fingerprint-matching tool in their arsenal thanks to AI, but it’s sparked a controversy The new technique uses a machine learning tool to match prints from different digits belonging to the same person, but forensic scientists disagree on its utility. Read More NFL announces more Super Bowl performers Get ready to sing along! Three popular musicians were added to the lineup of performers at Super Bowl LVIII. Comedy icons attend Jim Carrey’s birthday dinner As seen in this awesome group photo, several comedy MVPs came together to celebrate Carrey’s 62nd birthday.  Sarah Jessica Parker’s ‘Sex and the City’ tutu sells for $52,000 The unmistakable tutu skirt from the opening credits of “Sex and the City” sold on Thursday for more than four times its high estimate. Comedy icons attend Jim Carrey’s birthday dinner As seen in this awesome group photo, several comedy MVPs came together to celebrate Carrey’s 62nd birthday.  Cable companies are replacing ancient cable boxes with these gadgets A growing number of cable companies are trying to catch up with the times. They want you to replace your clunky cable boxes with this tiny device.  PHOTOS OF THE DAY Grindavik, Iceland Smoke billows and lava flows during a volcanic eruption on the outskirts of the evacuated town of Grindavik. Photograph: Icelandic Department of Civil Protection and Emergency Management/AFP/Getty Images Brugelette, Belgium Royal white tiger, Mumbai, with snow on its face, at the Pairi Daiza zoo in Brugelette. Photograph: Yves Herman/Reut Cubagua Island, Venezuela A snorkeler watches a shoal of fish near a shipwreck Photograph: Matias Delacroix/AP Market Closes for January 19th, 2024 Market Index  Close  Change  Dow Jones 37863.80 +395.19 +1.05% S&P 500  4839.81 +58.87 +1.23% NASDAQ  15310.97   +255.32 +1.70% TSX  20906.52 +149.79 +0.72% International Markets Market Index  Close  Change  NIKKEI  35963.27 +497.10 +1.40% HANG SENG 15308.69 -83.10 -0.54% SENSEX  71683.23   +496.37 +0.70% FTSE 100* 7461.93 +2.84 +0.04% Bonds Bonds  % Yield  Previous % Yield CND. 10 Year Bond  3.492 3.490 CND. 30 Year Bond  3.424 3.426 U.S.    10 Year Bond 4.1226 4.1420 U.S. 30 Year Bond 4.3285 4.3653 Currencies BOC Close  Today  Previous   Canadian $   0.7446 0.7416 US $    1.3430 1.3484   Euro Rate 1 Euro=  Inverse    Canadian $   1.4640 0.6830 US $    1.090 0.9174 Commodities Gold Close  Previous   London Gold Fix  2013.20 2011.75 Oil WTI Crude Future  73.41 74.08 Market Commentary: 📈 On this day in 1736, James Watt, the mechanical father of the Industrial Revolution, was born in Greenock, Scotland. He improved the steam engine, which powered Britain’s textile mills and railroads, making large-scale factories possible. Canada By Bloomberg Automation (Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.7%, or 149.79 to 20,906.52 in Toronto. The move was the biggest since rising 0.8% on Dec. 21. Shopify Inc. contributed the most to the index gain, increasing 2.8%. Tricon Residential Inc. had the largest increase, rising 27.3%. Today, 131 of 225 shares rose, while 86 fell; 9 of 11 sectors were higher, led by financials stocks. Insights * So far this week, the index fell 0.4%, heading for the biggest decline since the week ended Dec. 8 * The index advanced 2.8% in the past 52 weeks. The MSCI AC Americas Index gained 23% in the same period * The S&P/TSX Composite is 1.1% below its 52-week high on Jan. 12, 2024 and 11.8% above its low on Oct. 27, 2023 * S&P/TSX Composite is trading at a price-to-earnings ratio of 16.3 on a trailing basis and 15.1 times estimated earnings of its members for the coming year * The index’s dividend yield is 3.2% on a trailing 12-month basis * S&P/TSX Composite’s members have a total market capitalization of C$3.29t * 30-day price volatility rose to 11.25% compared with 11.23% in the previous session and the average of 10.88% over the past month ================================================================ | Index Points | |Sector Name | Move | % Change | Adv/Dec ================================================================ Financials | 78.7474| 1.2| 26/1 Information Technology | 35.8738| 1.9| 9/1 Industrials | 15.4434| 0.5| 12/14 Real Estate | 12.7200| 2.6| 19/2 Materials | 7.9777| 0.4| 27/22 Utilities | 7.9464| 1.0| 12/2 Consumer Staples | 1.3217| 0.1| 4/6 Communication Services | 0.4593| 0.1| 1/4 Health Care | 0.0950| 0.2| 3/1 Consumer Discretionary | -0.2869| 0.0| 8/5 Energy | -10.4959| -0.3| 10/28 ================================================================ | | |Volume VS || Index | | 20D AVG |YTD Change Top Contributors |Points Move| % Change | (%) | (%) ================================================================ Shopify | 24.3500| 2.8| -14.2| 4.2 RBC | 12.6500| 1.0| 179.6| -0.1 TD Bank | 12.4000| 1.2| -55.3| -5.2 TC Energy | -1.5240| -0.4| -52.5| 0.6 Wheaton Precious | | | | Metals | -1.5840| -0.8| 16.1| -5.1 Cameco | -4.4600| -2.3| 31.9| 10.4 US By Rita Nazareth (Bloomberg) — Wall Street ended the week on a positive note, with stocks closing at all-time highs on speculation the Federal Reserve will start cutting rates this year — bolstering the outlook for Corporate America. Another rally in the S&P 500’s most-influential group — technology — drove the gauge to a record for the first time in two years. Fueled by hopes the artificial-intelligence boom will keep powering the market higher, the benchmark topped 4,800 — defying warnings that the rally remains concentrated in a narrower group of shares. Equities pushed higher on Friday as a drop in Treasury volatility continued to bode well for risk-taking on Wall Street. Also helping sentiment somewhat was a report seen by  many as “Fed-friendly,” showing a mix of high consumer confidence and lower inflation expectations. “Much more good than bad news in the underlying economic data as we enter 2024, with inflation cooling,” said Art Hogan at B Riley Wealth. “We’re seeing a plausible path to inflation continuing to ease gradually, an end to Fed rate hikes, and a re-acceleration of economic growth in the back half of 2024.” The S&P 500 added 1.2%, erasing this week’s losses. The tech-heavy Nasdaq 100 outperformed, with Advanced Micro Devices Inc. hitting a record and Nvidia Corp. leading mega-caps higher. Treasury 10-year yields were little changed. The dollar fell. Since hitting a low in October 2022, the S&P 500 has surged about 35% and topped its previous closing high of 4,796.56. The gauge became the last of the three major US benchmarks to close at a record. If history is any guide, there’s potential for further gains ahead. The gauge went 512 trading days without a record through Thursday, which ranks as the sixth-longest streak since 1928, according to Ned Davis Research. One year after hitting new highs, the index has risen 13 out of 14 times by a median of 13% in that span. “The equity market’s path of least resistance seems to be higher until the consumer pulls back and/or the labor market buckles,” said Nicholas Bohnsack at Strategas. “In the absence of a ‘soft patch’ we remain positive on the equity market having increased exposure to stocks into year-end but suspicious the same mix that led the market last year, i.e., the ‘Magnificent 7’ will continue to carry the day.” The same group of companies that led a stellar run in stocks last year is once again on the driver’s seat in 2024. So far in January, Nvidia., Microsoft Corp., Meta Platforms Inc. and Alphabet Inc. — all part of the “Magnificent Seven” cohort — are the biggest point gainers in the S&P 500. Meantime, semiconductor shares got a boost this week from a bullish forecast Taiwan Semiconductor Manufacturing Co. Investors are reverting to owning growth, technology, the “AI bubble” as the 10-year Treasury yield settles in a range of 3.75% to 4.25%, according to Bank of America Corp.’s Michael Hartnett. While US shares saw redemptions at $4.3 billion in the week through Jan. 17, tech-stock funds saw the biggest two-week inflow since August at $4 billion, BofA said, citing EPFR Global data. “Bottom line, we’re off the bullish boil and the boat is less full, but it’s still leaning firmly positive,” said Peter Boockvar, author of the Boock Report. After being caught flat-footed early last year, fund managers have gone all-in on technology stocks — so much so that it’s sparking warnings that the Nasdaq 100 is looking ever more vulnerable to investor pullbacks. Hedge funds hold the highest level of net-long Nasdaq 100 futures in nearly seven years, according to Societe Generale’s weighted analysis of data on the Nasdaq 100 Index futures and e-mini contracts provided by the Commodities Futures Trading Commission. Meanwhile, a global fund manager survey from Bank of America Corp. this month showed the most crowded trade is being long the so-called Magnificent Seven stocks and other tech-related growth shares as a way to play the prospect of Fed easing. “Based on the recent price action, Nasdaq 100 traders don’t seem particularly concerned about the upcoming earnings reports,” said Matthew Weller at Forex.com and City Index.  Now, with the “Magnificent Seven” stocks collectively trading at an “eye-watering” valuation, “the only thing that could drag down the Nasdaq 100 may be poor earnings results,” he noted. While narrow areas of US equity markets are dazzling investors with new highs, such action continues to mask a widening divergence underneath the surface that speaks of ongoing “technical disease,” according to Dan Wantrobski at Janney Montgomery Scott. “Narrow leadership such as this is a throwback to last year (mega-cap/AI/Mag 7), and our belief is that if it persists, it will trigger a wider bout of volatility not too far down the road,” Wantrobski added. The combination of better-than-expected growth and a meaningful improvement in inflation — which gives the Fed flexibility to cut interest rates — is giving UBS’s Chief Investment Office greater conviction in its base case for an economic soft landing. While this benign outcome is mostly priced into equity markets, market gains can extend a bit further, the firm notes. “Our June and December S&P 500 price targets are 4,900 and 5,000, respectively,” said David Lefkowitz at UBS Global Wealth Management. “We maintain a neutral preference for US equities in our tactical asset allocation. With S&P 500 valuations full, in our view, we look for a pickup in earnings growth to be the primary driver of the somewhat modest upside that we expect.” A double-digit stock rally led by mega-caps in 2023 means an ever-enlarging chunk of the benchmark index is acutely tied to long-term earnings prospects — and hence more sensitive to rising yields. With inflation concerns lingering, positive stock-bond correlations have firmed back up. The 60-day correlation between the S&P 500 and benchmark Treasuries turned positive again and has threatened bonds’ hedging role since August of last year. “The good news is the market has done a decent job of working off some of the extremes in price and sentiment through a correction in time and through churning, as opposed to intense selling pressure,” said Keith Lerner at Truist Advisory Services. “Economic, earnings, and credit trends continue to show resilience.” Traders also kept a close eye on remarks from central bank officials, who spoke just hours before the Fed’s traditional pre-meeting communications blackout period. Fed Bank of Chicago President Austan Goolsbee said a continued decline in inflation would merit discussion of reducing rates, though he stressed the central bank will make decisions meeting-by-meeting. His Atlanta counterpart Raphael Bostic said he’s open to changing his views on the timing of cuts depending on the data, though he wants to be sure inflation is “well” on the way to the 2% goal before easing policy. San Francisco Fed chief Mary Daly said it’s far too early to declare victory on inflation. Markets are overpricing the pace and amount of Fed-rate cuts as they are overlooking stubbornly high inflation, according to economist Mohamed El-Erian. “I do think that we get to the pivot, but relative to what the market expects, it won’t be as fast or as deep,” said El-Erian, president of Queens’ College, Cambridge, and a Bloomberg Opinion columnist. Traders have tempered their wagers on rate cuts as US economic data continued to show resilience and Fed officials emphasized they want to ensure inflation is tamed before embarking on any cuts. Markets are now pricing in about 1.4 percentage points of reductions this year, compared with expectations of as much as 1.7 percentage points of easing as recently as last week. Corporate Highlights: * Apple Inc. vowed to open up its coveted tap-to-pay technology on iPhones to rivals in a bid to sidestep potentially massive European Union antitrust fines. * Amazon.com Inc.’s proposed $1.4 billion acquisition of Roomba maker iRobot Corp. is expected to be blocked by the European Union’s antitrust regulator over concerns that the deal will \harm other robot vacuum makers. * Ford Motor Co. cut production of its F-150 Lightning electric truck amid fading demand for electric vehicles. * Spirit Airlines Inc. said its deal with JetBlue Airways Corp. “remains in full force and effect” as the carrier explores ways to shore up its liquidity, offering investors a measure of relief after a federal judge blocked the multibillion-dollar buyout. * J.B. Hunt Transport Services Inc. hauled more containers of freight than Wall Street expected in the fourth quarter, suggesting the sector may be recovering after a bad year. * SLB will raise its payout to shareholders by 10%, marking the highest dividend since 2020, as a ramp-up in drilling outside of North America buoyed results for the world’s biggest oil-field contractor. * Ally Financial Inc. announced fourth-quarter results that topped analysts’ estimates and said it will sell a point-of-sale financing business that includes $2.2 billion of loan receivables to Synchrony Financial. * Comerica Inc. said net interest income will probably slide 11% this year and reported a plunge in fourth-quarter profit on a series of one-time charges. 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 2% * The Dow Jones Industrial Average rose 1.1% * The MSCI World index rose 1.1% Currencies * The Bloomberg Dollar Spot Index fell 0.2% * The euro rose 0.2% to $1.0895 * The British pound was little changed at $1.2701 * The Japanese yen was little changed at 148.14 per dollar Cryptocurrencies * Bitcoin rose 1.4% to $41,638.5 * Ether rose 1% to $2,479.65 Bonds * The yield on 10-year Treasuries was little changed at 4.14% * Germany’s 10-year yield was little changed at 2.34% * Britain’s 10-year yield was little changed at 3.93% Commodities * West Texas Intermediate crude fell 0.4% to $73.82 a barrel * Spot gold rose 0.2% to $2,028.23 an ounce This story was produced with the assistance of Bloomberg Automation. –With assistance from Farah Elbahrawy, Michael Mackenzie, Liz Capo McCormick, Kristine Aquino, Denitsa Tsekova and Jessica Menton. Have a wonderful weekend everyone. Be magnificent! As ever, Carolann The gratification of wealth is not found in mere possession or in lavish expenditure, but in its wise application. –Miguel de Cervantes, 1547-1616. 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.
Winnie the Pooh day.
On Jan. 18, 1778: English navigator Captain James Cook reached the present-day Hawaiian Islands, which he named the “Sandwich Islands.”
January 18^th, 1886: Modern hockey is born.  The foundation of The Hockey Association in England formalized a modern version of the game that had already been played in ancient times.
2005: The world’s largest commercial jet, an Airbus A380 that can carry 800 passengers, was unveiled in Toulouse, France.  Go to article >>

A look at what else happened in history on January 18

Steve Forbes Is Selling His Winston Churchill Memorabilia Collection

How ChatGPT learned to lie and cheat in the pursuit of money.  Read More.

IBM’s new Heron chip inches us closer to a quantum reality.  Read More.

Sonar-enhanced “smart” glasses could protect privacy.  Read More.

PHOTOS OF THE DAY

Glencoe. UK
Hill walkers, skiers and snowboarders on Meall a’ Bhuiridh in Glencoe
Photograph: Murdo MacLeod/The Guardian

Swans and seagulls on a frozen Tynemouth boating lake
Photograph: Owen Humphreys/PA

​​​​​​​People walking in the snow at Derwent Water in Keswick
Photograph: Owen Humphreys/PA
Market Closes for January 18^th, 2024

Market Index	Close	Change
Dow Jones	37468.61	+201.94
		+0.54%
S&P 500	4780.94	+41.73
		+0.88%
NASDAQ	15055.65	+200.03
		+1.35%
TSX	20756.73	+61.71
		+0.30%

International Markets

Market Index	Close	Change
NIKKEI	35466.17	-11.58
		-0.03%
HANG SENG	15391.79	+114.89
		+0.75%
SENSEX	71186.86	-313.90
		-0.44%
FTSE 100*	7459.09	+12.80
		+0.17%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.490	3.446
CND. 30 Year Bond	3.426	3.366
U.S.    10 Year Bond	4.1420	4.1019
U.S. 30 Year Bond	4.3653	4.3116

Currencies

BOC Close	Today	Previous
Canadian $	0.7416	0.7406
US $	1.3484	1.3503

 

Euro Rate 1 Euro=		Inverse
Canadian $	1.4673	0.6815
US $	1.0881	0.9190

Commodities

Gold	Close	Previous
London Gold Fix	2011.75	2038.15
Oil
WTI Crude Future	74.08	72.56

Market Commentary:
📈 On this day in 1956, Ford Motor went public after more than a half-century as a private company. The Ford Foundation sold 10.2 million shares at $64.50.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.3% at 20,756.73 in Toronto.
The move follows the previous session’s decrease of 1.2%.
Today, industrials stocks led the market higher, as 7 of 11 sectors gained; 118 of 225 shares rose, while 98 fell.
Alimentation Couche-Tard Inc. contributed the most to the index gain, increasing 3.0%.
Orla Mining Ltd. had the largest increase, rising 5.7%.
Insights
* So far this week, the index fell 1.1%, heading for the biggest decline since the week ended Oct. 27
* The index advanced 1.9% in the past 52 weeks. The MSCI AC Americas Index gained 21% in the same period
* The S&P/TSX Composite is 1.8% below its 52-week high on Jan. 12, 2024 and 11% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 0.8% in the past 5 days and rose 0.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.3 on a trailing basis and 15.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.28t
* 30-day price volatility little changed to 11.23% compared with 11.22% in the previous session and the average of 10.83% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | 42.9480| 1.5| 22/4
Financials | 25.8765| 0.4| 21/6
Consumer Staples | 19.8231| 2.2| 10/1
Consumer Discretionary | 4.4576| 0.6| 10/3
Materials | 3.1767| 0.1| 19/29
Communication Services | 3.0050| 0.4| 5/0
Real Estate | 1.3397| 0.3| 6/12
Health Care | -0.6360| -1.0| 2/2
Utilities | -3.9815| -0.5| 5/10
Information Technology | -15.5051| -0.8| 8/2
Energy | -18.7835| -0.5| 10/29
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Couche-Tard | 12.2400| 3.0| 24.4| 4.2
Canadian Pacific Kansas | 10.1000| 1.5| -21.3| -0.6
Canadian National | 10.0800| 1.5| -1.7| 1.1
Bank of Nova Scotia| -5.6470| -1.1| -4.7| -4.9
Enbridge | -7.1350| -1.0| 302.4| 1.2
Shopify | -32.7800| -3.6| 1.1| 1.4
US
By Rita Nazareth
(Bloomberg) — A rally in some of the world’s largest technology companies fueled a rebound in stocks, with traders also weighing the latest economic data and Fed speak for clues on the US central bank’s next steps.
After a back-to-back slide, the S&P 500 rose as bond-market volatility abated.
The Nasdaq 100 closed at an all-time high as Apple Inc. climbed on an analyst upgrade and Taiwan Semiconductor Manufacturing Co.’s outlook lifted chipmakers on hopes for a global tech recovery in 2024.
Stock traders were unfazed by data underscoring labor-market strength at a time when Fed officials are looking for signs of a slowdown as they contemplate cutting rates.
Fed Bank of Atlanta President Raphael Bostic urged policymakers to proceed cautiously toward easing given the potential impacts of unpredictable events from elections to global conflicts.
His Philadelphia counterpart Patrick Harker said he expects inflation to keep ebbing toward the 2% target.
“Given the underlying strength of the US economy, it’s difficult to get too bearish at this point,” said Chris Zaccarelli at Independent Advisor Alliance. “The pervasive pessimism and doubt about the stock market and economy is a
contrarian signal and one of the best reasons to push against the crowd. Once the last skeptic has been converted, the market will be again vulnerable to a large shock, but we aren’t at that point yet.”
The S&P 500 closed at 4780.94, while the Nasdaq 100 1.5%.
A gauge of chipmakers climbed almost 3.5%.
Treasury two-year yields remained around 4.35%. Oil rose to $74 a barrel.
Bitcoin slid below $41,000.
The rebound in stocks suggests things are a lot calmer, but that’s not to say conditions will remain that way, according to Fawad Razaqzada at City Index and Forex.com.
He cited a growing perception that big central banks might not lower interest rates as much or as soon as the market thought they would.
“There’s clearly a desperate desire to cling on to the optimism that enabled such a strong end to the year, but unlike in that period, the data isn’t really playing ball,” said Craig Erlam at Oanda. “The releases we’ve seen so far this month have been fine and in the main, perfectly in keeping with the expectations people had coming into 2024. But is that enough?”
Blackstone Inc. Chief Executive Officer Steve Schwarzman said he expects the Fed to lower rates and sees “animal spirits” returning to the markets as more investors make that bet too.
The Fed’s timing on rate declines won’t be clear, creating a “baffling effect” among investors, he told Bloomberg Television on the sidelines of the World Economic Forum.
Coming off its best winning streak in two decades, the S&P 500 has run into a roadblock in 2024, with its all-time closing record set two years ago remaining elusive.
But a technical gauge that measures the momentum to buy or sell stocks signals that bulls are still stepping in to snap up shares.
The index’s DVAN trend line — a proprietary divergence analysis that measures buying or selling pressure — has been on a buying streak since the S&P 500 bottomed in late October, with investors continuing to scoop up shares in multiple trading sessions heading into the closing bell in the past week.
To Dan Wantrobski at Janney Montgomery Scott, while markets have stabilized after the recent weakness, a “bumpy path” is still expected.
“There are many conflicting market internals/technicals appearing on the charts right now — which should make for a choppy, range-bound glide path over the near term,” Wantrobski noted.
After being caught flat-footed early last year, fund managers have gone all-in on technology stocks — so much so that it’s sparking warnings that the Nasdaq 100 is looking ever more vulnerable to investor pullbacks.
Hedge funds hold the highest level of net-long Nasdaq 100 futures in nearly seven years, according to Societe Generale’s weighted analysis of data on the Nasdaq 100 Index futures and e-mini contracts provided by the Commodities Futures Trading Commission.
Meanwhile, a global fund manager survey from Bank of America Corp. this month showed the most-crowded trade is being long the “Magnificent Seven” stocks and other tech-related growth shares as a way to play the prospect of Fed easing.
Matt Maley at Miller Tabak + Co. says that as much as he’s worried about the return of the “narrow stock market,” some hope does exist that it can broaden out.
The news coming out of the chip industry is “definitely bullish,” and “if it can cause a significant and sustainable move above the late-2023 highs, it’s going to be something that should push the stock market higher going forward,” Maley noted.

Corporate Highlights:
* Humana Inc. shares plummeted after preliminary earnings missed estimates on higher-than-expected costs of members’ care and the Medicare-focused insurer forecast anemic enrollment growth for this year.
* Spirit Airlines Inc. tumbled again as investors took little solace from a pledge by the airline to strengthen its balance sheet in the wake of a failed takeover of the deep-discount carrier.
* Boeing Co. won an order for 150 Max jets from India’s newest airline, in a rare spot of good news for the US plane-maker since a piece of fuselage blew off an Alaska Airlines flight almost two weeks ago.
* Nelson Peltz said Walt Disney Co. is unable to heal “self-inflicted wounds” under current leadership and should be aiming for “Netflix-like margins,” days after the entertainment giant knocked back the activist’s bid for a seat on its board.
* Bayer AG is leaning against breaking up the conglomerate, rejecting pleas from investors frustrated by the company’s ongoing struggle to recover from its costly purchase of Monsanto, according to people familiar with the matter.
* Birkenstock Holding Plc’s growth targets failed to satisfy traders who were hoping for more from the German sandal maker.
* KeyCorp reported fourth-quarter profit that fell short of analysts’ estimates and predicted net interest income would decline this year.
* Goodyear Tire & Rubber Co. named Stellantis NV executive Mark Stewart as chief executive officer following a pressure campaign by shareholder activist Elliott Investment Management.
* Discover Financial Services posted a 62% drop in fourth-quarter profit as the company continued to grapple with the fallout from compliance and risk-management lapses that led to the resignation of its chief executive officer last year.

Key events this week:
* Canada retail sales, Friday
* Japan CPI, tertiary index, Friday
* US existing home sales, University of Michigan consumer sentiment, Friday
* ECB President Christine Lagarde and IMF Managing Director Kristalina Georgieva speak in Davos, Friday
* San Francisco Fed President Mary Daly speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.9% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.5%
* The Dow Jones Industrial Average rose 0.5%
* The MSCI World index rose 0.7%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.1% to $1.0869
* The British pound rose 0.2% to $1.2699
* The Japanese yen was little changed at 148.19 per dollar
Cryptocurrencies
* Bitcoin fell 4.2% to $40,850.5
* Ether fell 3.1% to $2,446.11
Bonds
* The yield on 10-year Treasuries advanced four basis points to 4.14%
* Germany’s 10-year yield advanced three basis points to 2.35%
* Britain’s 10-year yield declined six basis points to 3.93%
Commodities
* West Texas Intermediate crude rose 2.1% to $74.07 a barrel
* Spot gold rose 0.8% to $2,022.08 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jessica Menton, Isabelle Lee, Jeran Wittenstein and Elena Popina.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
The greatest good you can do for another is not just to share your riches but to reveal to him his own. –Benjamin Disraeli, 1804-1881.

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