January 08, 2020 Newsletter

Dear Friends,

Tangents:

Birthdays:
Elvis Presley, b. 1935
Stephen Hawking, physicist, b. 1942
David Bowie, b. 1947

We are just an advanced breed of monkeys on a minor planet of a very average star.  But we can understand the Universe. 
That makes us something very special. -Stephen Hawking, 1942-2018.

Also on this day in…                                                    
1851: Earth’s rotation  proved.
1982 – AT&T settled the Justice Department’s antitrust lawsuit against it by agreeing to divest itself of the 22 Bell System companies.  Go to article »

PHOTOS OF THE DAY

Adelaide wildlife rescuer Simon Adamczyk holds a koala he rescued at a burning forest near Cape Borda on Kangaroo Island, Australia.
CREDIT: DAVID MARIOUZ/EPA

Cars and people surround camels for sale during the annual King Abdulaziz Camel Festival in Rumah.
CREDIT: FAISAL AL-NASSER/AFP

A murmuration of migrating starlings fly in a group over a field near Kiryat Gat, Israel.
CREDIT: AMIR COHEN/REUTERS

Market Closes for January 08^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1829, on one of the quietest days in Wall Street history, the market was open but not a single share of stock changed hands.
Canada
By Aoyon Ashraf and Bloomberg Automation
     (Bloomberg) — Canadian stocks pared their earlier gains to end Wednesday’s session flat, underperforming their U.S. counterparts. The drop in gold miners outpaced the gains in tech
and financial stocks. The S&P/TSX Composite declined slightly to 17,167.82 in Toronto. The move followed the previous session’s increase of 0.4%. Today, materials stocks led the market lower, as 4 of 11 sectors retreated. Barrick Gold Corp. contributed the most to the index decline, falling 4.2%, along with other gold miners after
President Donald Trump said Iran “seems to be standing down,” easing fears of further hostilities that spurred the metal’s earlier rally. Westshore Terminals Investment Corp. had the largest drop, falling 11%, after customer Teck Resources Ltd. announced a pact with competitor Ridley Terminals Inc.
Meanwhile, McDonald’s Corp. and Beyond Meat Inc. are expanding their partnership — a significant step forward for the fast-growing faux-meat producer. Fifty-two restaurants in southwestern Ontario will now serve the “P.L.T.” sandwiches — plant, lettuce and tomato that feature Beyond Meat’s pea-based patties — for 12 weeks starting Jan. 14.
Commodities
* Western Canada Select crude oil traded at a $22.85 discount to WTI
* Spot gold fell 1.2% to $1,555.95 an ounce
FX/Bonds
* The Canadian dollar weakened 0.3% to C$1.3039 per U.S. dollar
* The 10-year government bond yield rose 5 basis points to 1.631%
Insights
* The index advanced 18% in the past 52 weeks. The MSCI AC Americas Index gained 26% in the same period
* The S&P/TSX Composite is 0.4% below its 52-week high on Dec. 27 and 18% above its low on Jan. 8, 2019
* The S&P/TSX Composite is up 0.6% in the past 5 days and rose 1% in the past 30 days
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -56.0358| -2.9| 9/39
Energy | -15.3793| -0.5| 8/22
Consumer Discretionary | -4.2054| -0.6| 4/12
Real Estate | -0.1644| 0.0| 10/14
Health Care | 0.0050| 0.0| 4/5
Utilities | 0.2209| 0.0| 7/8
Communication Services | 1.2548| 0.1| 5/3
Consumer Staples | 5.1365| 0.8| 8/3
Information Technology | 10.7526| 1.1| 7/2
Industrials | 14.6165| 0.8| 20/11
Financials | 43.5494| 0.8| 25/2
US
By Sarah Ponczek and Vildana Hajric
(Bloomberg) — U.S. stocks rose to records and Treasuries fell after President Donald Trump toned down rhetoric against Iran. Equities closed well off highs as reports of fresh rocket attacks in Baghdad heightened investor jitters. The S&P 500 jumped to an intraday record after the U.S. president suggested further military action against Iranian targets is not necessary. The rally faded into the close after reports that rockets hit the Green Zone in Iraq’s capital where the U.S. embassy is located. Equities had swooned overnight around the world after Iran launched missiles at U.S. bases in Iraq, escalating tensions that flared last week.
“The dip in markets was only a partial retracement of the gains seen since President Trump spoke, which shows the limited impact,” said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute. “While geopolitical risks are here to stay, and will cause episodic volatility, we don’t believe the current circumstances warrant a change in the investment outlook.” Trump’s statement had calmed financial markets, sparking sharp reversals in assets from oil to gold and Treasuries. U.S. crude ended near $60 a barrel, $5 lower than its overnight highs. Ten-year yields topped 1.86% after falling below 1.8%, and gold slumped more than $40 an ounce from its highs. In company news, Boeing Co. slumped after one of its planes crashed in Iran. Walgreens Boots Alliance sank 6% after the drugstore giant’s profits slid, while Lennar Corp. advanced as its earnings topped estimates.
“The main market driver right now is the generally improving macroeconomic backdrop and most other things are a distraction from that overriding theme,” Michael Reynolds, investment strategy officer at Glenmede, said by phone. “I think the loudest distraction has certainly been the geopolitical tension between the U.S. and Iran going back and forth.” Before the late-session drop, markets had settled back into
the familiar risk-on mood that pushed benchmarks to recent records amid optimism sparked by signs of a resilient global economy as well as a partial Sino-American trade deal. Investors are also watching the nonfarm jobs report due Friday. A gauge of private employment beat expectations Wednesday.

Here are some events to watch for this week:
* President Trump said he would make a statement on Wednesday morning in wake of the Iran attack.
* Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday.
* The U.S. monthly non-farm employment report is due Friday.

These are moves in major markets:
Stocks
* The S&P 500 Index advanced 0.5% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index rose 0.2%.
* The MSCI Asia Pacific Index decreased 0.9%.
Currencies
* The Bloomberg Dollar Spot Index added 0.2%.
* The British pound fell 0.2% to $1.3100.
* The euro dipped 0.4% to $1.1111.
* The Japanese yen declined 0.7% to 109.19 per dollar.
Bonds
* The yield on 10-year Treasuries rose five basis points to 1.87%.
* The yield on two-year Treasuries gained four basis points to 1.58%.
* Britain’s 10-year yield added three basis points at 0.817%.
Commodities
* West Texas Intermediate crude fell 4.5% to $59.91 a barrel.
* Gold dropped 1.2% to $1,555.70 an ounce.
–With assistance from Todd White.
Have a great night.

Be magnificent!

As ever,

Carolann

If you really look closely, most overnight successes  took a long time.          
                                                                       -Steve Jobs, 1955-2011

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