January 12, 2022 Newsletter

Dear Friends,

Tangents:
1948: The first Supermarket in the UK opens, the London Co-operative Society.  While Americans had been helping themselves since the 1930s, self-service didn’t come to Britain until after the Second World War. (although the London Co-op ran a trial in 1942).

1969: Led Zeppelin’s self-titled first album was released. Go to article »

1755:  Tsarina Elizabeth establishes first Russian University.

Oreo is celebrating its 110th birthday with a first-ever flavor.  Name a better duo than Oreos and milk. I’ll wait.

Mark Wahlberg launched a tequila. He plans to make it No. 1.  The A-list actor is the latest mega-celebrity getting into the booze business.

Residential cruise ship offering an all-inclusive life at sea.  Now, that sounds like a really suite life… minus the motion sickness.

The 2022 Mercedes-Benz SL is nothing like its predecessors.

A new large-scale study found that being physically active halves the risk of developing clinical anxiety over time.
PHOTOS OF THE DAY

A pedestrian walks through the mist in a park in east London
CREDIT: Akira Suemori/REX/Shutterstock

A worker prepares bundles of incense sticks ahead of lunar new year celebrations
CREDIT: Nhac Nguyen/AFP/Getty Images

A woman takes her children for a walk during a heavy snowstorm
CREDIT: Nikolai Mikhalchenko/TASS/Getty Images

Market Closes for January 12^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1914, Henry Ford said he would share Ford Motor’s profits with its workers by raising wages from $2.34 for a nine-hour day to $5.00 for an eight-hour day. He hoped his own workers would be able to afford to buy their own Fords. Within two years, Ford went on to produce its 1,000,000th car.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities climbed as the materials sector soared to its highest point in more than a month and energy rose.
The S&P/TSX Composite gained for the second day, climbing 0.6% or 120.19 points to 21,395.00 in Toronto.
The index advanced to the highest closing level since Nov. 25.
First Quantum Minerals Ltd. contributed the most to the index gain and had the largest move, increasing 9.6%.
Today, 142 of 241 shares rose, while 95 fell; 6 of 11 sectors were higher, led by materials stocks.
Insights
* The index advanced 19 percent in the past 52 weeks. The MSCI AC Americas Index gained 22 percent in the same period
* The S&P/TSX Composite is 1.8 percent below its 52-week high on Nov. 16, 2021 and 23.7 percent above its low on Jan. 29, 2021
* The S&P/TSX Composite is up 1.7 percent in the past 5 days and rose 2.4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.3 on a trailing basis and 15.2 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$3.4t
* 30-day price volatility rose to 14.24 percent compared with 14.15 percent in the previous session and the average of 14.93 cent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 54.9076| 2.3| 47/7
* Financials | 34.0473| 0.5| 19/9
* Energy | 29.2774| 1.0| 24/8
* Information Technology | 4.5973| 0.2| 9/6
* Consumer Staples | 4.2870| 0.6| 5/6
* Industrials | 3.7219| 0.1| 15/15
* Utilities | -0.3993| 0.0| 10/6
* Communication Services | -1.8750| -0.2| 3/4
* Real Estate | -2.1238| -0.3| 5/18
* Consumer Discretionary | -2.4254| -0.3| 5/8
* Health Care | -3.8154| -2.3| 0/8
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* First Quantum Minerals | 12.0200| 9.6| 142.9| 19.5
* Royal Bank of Canada | 11.7300| 0.8| 35.1| 8.0
* TD Bank | 9.7510| 0.8| 21.9| 4.6
* Brookfield Renewable Partners | -1.4430| -2.4| 91.9| -6.6
* Descartes Systems | -1.6020| -2.9| -36.6| -12.5
* Restaurant Brands | -4.1060| -2.5| -28.7| -4.9

US
By Rita Nazareth and Cecile Gutscher
(Bloomberg) — Stocks rose as a report showing the fastest inflation in about four decades was roughly in line with market expectations, with traders keeping their bets on a rate hike in March.
Commodity and retail companies led gains in the S&P 500.
Electric-vehicle maker Tesla Inc. and Google’s parent Alphabet Inc. paced a rally in mega-caps.
Financial shares underperformed, with major banks set to report their results Friday.
Goldman Sachs Group Inc. and Morgan Stanley tumbled, while Jefferies Financial Group Inc. slid after saying fixed-income trading revenue plunged 50% from a year earlier.
The Bloomberg Dollar Spot Index had its worst session since May.
The bond market reaction to the inflation data was fairly muted in part because yields have already surged since the start of the year, with traders bracing for the Federal Reserve to begin raising rates.
Ahead of the report, positioning in the broad Treasury market was the most net-bearish since late 2017, according to the latest survey by JPMorgan Chase & Co.
The U.S. economy grew at a modest pace in the final weeks of last year, but businesses’ expectations for growth over the next several months have cooled in some places, the Fed said in its Beige Book survey. During a Wall Street Journal Live event streamed on Twitter, Fed Bank of Cleveland President Loretta Mester said “the case is very compelling that we remove accommodation.”
Comments:
* “Wall Street was worried that a much hotter inflation report could have not only cemented four Fed rate hikes this year, but potentially made the May FOMC meeting a possibility for when the balance-sheet runoff could start,” said Edward Moya, senior market analyst at Oanda, referring to the Federal Open Market Committee.
* “Fears about higher and persistent inflation have been well telegraphed in recent months. Today’s rise in the rate of inflation falls within investors’ expectations,” said Richard Flynn, managing director at Charles Schwab U.K.
* “Bond markets are currently pricing in about a 90% probability that the Fed delivers four rate hikes in 2022, and today’s inflation data should not dissuade the central bank from delivering the first of those hikes in March,” said Jai Malhi, global market strategist at J.P. Morgan Asset Management.
Here are some key events this week:
* 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 0.3% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.4%
* The Dow Jones Industrial Average rose 0.1%
* The MSCI World index rose 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.6%
* The euro rose 0.7% to $1.1450
* The British pound rose 0.6% to $1.3711
* The Japanese yen rose 0.7% to 114.55 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 1.74%
* Germany’s 10-year yield declined three basis points to -0.06%
* Britain’s 10-year yield declined three basis points to 1.14%
Commodities
* West Texas Intermediate crude rose 1.8% to $82.71 a barrel
* Gold futures rose 0.5% to $1,827.10 an ounce
–With assistance from Andreea Papuc, Vildana Hajric, Emily Graffeo and Payne Lubbers.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

The basic experience of everyone is the experience of human limitation. -Flannery O’Connor, 1925-1964.

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