January 11, 2022 Newsletter

Dear Friends,

Tangents:
1569: First recorded lottery in England is drawn in St. Paul’s Cathedral.  Every ticket was guaranteed a prize, and that made for lot of waiting around – until May 6^th, to be precise.  Prizes ranged from silver plate and tapestries to a £5000 jackpot.

On Jan. 11, 1964, the United States surgeon general reported that cigarettes cause lung cancer. Go to article »

1964: Cigarettes declared hazardous.

Theodosius, emperor, b. 347.
Alexander Hamilton, statesman, b. 1755.
William James, philosopher, b. 1842.

Maya Angelou becomes first Black woman to appear on US quarter.  Distribution of the coin showcasing the legendary poet and activist began yesterday. 

Giant ‘sea dragon’ fossil found in UK reservoir.  Oh, nature… how can you be so remarkable and yet so terrifying at the same time?

Rolls-Royce and Bentley post record sales in 2021.  More money, less problems. The pandemic didn’t faze these ultra-luxury car brands.

2022 is the year of modern space travel.  Add “hitch a ride on a rocket” to your bucket list! Orbital tourism is a top priority for the space industry this year. 

Fifty-seven-year-old man is alive and well with a heart from a gene-edited pig.

PHOTOS OF THE DAY

The northern lights streak through the sky over forest tundra in the north-west Arctic
CREDIT: Lev Fedoseyev/Tass

The city is blanketed under fog in a photograph taken from the al-Hamra Tower
CREDIT: Yasser Al-Zayyat/AFP/Getty Images

A Roman female deity scale weight uncovered during the HS2 archaeology excavation at Blackgrounds in Northamptonshire, one of the most significant sites on the project to date
CREDIT: HS2/PA

Market Closes for January 11^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
A bank is a place where they lend you an umbrella in fair weather and ask for it back again when it begins to rain. -Robert Frost.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities climbed, led higher by gains in the energy and materials sectors, after the U.S. Federal Reserve said it will manage inflation as the economy rebounds.
The S&P/TSX Composite rose 1 percent at 21,274.81 in Toronto.
The move was the biggest advance since rising 1.9 percent on Dec. 21 and follows the previous session’s decrease of 0.1 percent.
Brookfield Asset Management Inc. contributed the most to the index gain, increasing 2.7 percent.
Lithium Americas Corp. had the largest increase, rising 13.0 percent.
Today, 191 of 241 shares rose, while 46 fell; 8 of 11 sectors were higher, led by financials stocks.
Insights
* In the past year, the index had a similar or greater gain 19 times. The next day, it advanced 12 times for an average 0.6 percent and declined seven times for an average 0.6 percent
* The index advanced 19 percent in the past 52 weeks. The MSCI AC Americas Index gained 21 percent in the same period
* The S&P/TSX Composite is 2.4 percent below its 52-week high on Nov. 16, 2021 and 23 percent above its low on Jan. 29, 2021
* The S&P/TSX Composite is little changed in the past 5 days and rose 1.8 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.2 on a trailing basis and 15.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.37t
* 30-day price volatility fell to 14.15 percent compared with 15.43 percent in the previous session and the average of 14.97 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 81.0631| 1.2| 26/1
* Energy | 57.3216| 1.9| 30/2
* Materials | 36.9228| 1.6| 51/4
* Information Technology | 27.7262| 1.4| 14/2
* Health Care | 4.2366| 2.6| 6/1
* Real Estate | 4.1683| 0.7| 17/6
* Consumer Discretionary | 3.9363| 0.5| 11/3
* Communication Services | 1.8344| 0.2| 4/3
* Consumer Staples | -1.5532| -0.2| 4/7
* Utilities | -4.0496| -0.4| 5/11
* Industrials | -9.1049| -0.4| 23/6
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Brookfield Asset Management | 19.2200| 2.7| -34.4| -3.5
* Shopify | 17.8300| 1.6| -18.5| -16.4
* Suncor Energy | 14.6700| 4.4| 26.6| 11.2
* Gildan Activewear | -1.8890| -2.7| 8.7| -4.4
* Canadian National | -6.4640| -1.0| -19.1| -1.0
* Canadian Pacific | -12.8100| -2.1| -57.2| 3.4
US
By Rita Nazareth and Emily Graffeo
(Bloomberg) — Stocks climbed after Jerome Powell reassured investors that the Federal Reserve is going to tamp down inflation as the economy rebounds, while signaling the central bank will probably start shrinking its balance sheet in 2022.
The S&P 500 halted a five-day slide, the Nasdaq 100 outperformed major benchmarks and dollar fell. The Fed chief told the Senate Banking Committee that officials won’t hesitate to act if needed to contain price pressures.
“If we have to raise interest rates more over time, we will,” he noted.
Noting that the economy was in a much stronger position than the last time the central bank shrank its balance sheet, Powell said no decisions had been made, but it would be quicker this time around.
“I’ve referred to Powell before as Goldilocks in a suit, and to a certain extent, I think he played that role once again,” said Steve Sosnick, chief strategist at Interactive Brokers. “While he made the right noises about constraining the balance sheet and fighting inflation, he was very careful to balance that out with a general tone that indicated ultimately, ‘Yes I’m concerned about the market reaction to all of these
plans that we have’.”
Powell’s remarks follow comments from other officials favoring a start to shrinking the Fed’s $8.77 trillion balance sheet fairly soon after they begin raising rates.
Past experience shows that how the Fed manages its balance sheet matters, although the U.S. central bank has also adapted and in July 2021 it created two standing repo facilities to help ease
money-market pressures at times of stress.
In corporate news, CVS Health Corp. said its full-year adjusted earnings for 2021 would be in a higher range than currently expected by analysts.
American Airlines Group Inc. will report higher revenue in the fourth quarter than analysts expected as the carrier’s main operations escaped the worst of winter holiday cancellations.
International Business Machines Corp. was downgraded to sell at UBS Group AG.
Unfazed by the stock market’s bumpy start to the year, strategists from Goldman Sachs Group Inc. to UBS Global Wealth Management reiterated their bullish calls on bets that equities can weather higher rates and rising bond yields.
“The selloff in some long-duration, high-quality names might be overdone soon,” wrote Goldman strategists led by Cecilia Mariotti. With real yields not expected to move much higher, “valuations are unlikely to become a binding constraint for equities.”
Here are some key events this week:
* EIA crude oil inventory report on Wednesday.
* China PPI, CPI on Wednesday.
* U.S. CPI, Fed Beige Book on Wednesday.
* U.S. initial jobless claims, PPI on Thursday.
* U.S. Senate Banking Committee hearing for Lael Brainard, nominated as Fed vice-chair on Thursday.
* Richmond Fed President Thomas Barkin, Philadelphia Fed President Patrick Harker,
* Chicago Fed President Charles Evans speak on Thursday.
* Bank of Korea policy decision and briefing on Friday.
* Wells Fargo, Citigroup, JPMorgan due to report earnings on Friday.
* U.S. business inventories, industrial production, University of Michigan consumer sentiment, retail sales on Friday.
* New York Fed President John Williams 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 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.4% to $1.1366
* The British pound rose 0.4% to $1.3630
* The Japanese yen was little changed at 115.30 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 1.74%
* Germany’s 10-year yield was little changed at -0.03%
* Britain’s 10-year yield declined two basis points to 1.17%
Commodities
* West Texas Intermediate crude rose 4.2% to $81.48 a barrel
* Gold futures rose 1.3% to $1,822.40 an ounce
–With assistance from Andreea Papuc and Cecile Gutscher.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

Every moment is a fresh beginning. -T.S. Eliot, 1888-1965.

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

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

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