January 12th, 2023 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
Rare green comet not seen since the Stone Age will zoom overhead tonight. Here’s how to watch.
On Feb. 1, a comet called C/2022 E3 (ZTF) will pass by Earth for the first time in 50,000 years, meaning the last time it cruised by our planet, Homo sapiens were still sharing the planet with Neanderthals. And according to calculations from astronomers, the comet will never come back.  But you don’t have to wait until February to see the comet; there are a few ways to spot it before its closest approach, starting today (Jan. 12). Full Story: Live Science (1/12)

On Jan. 12, 2010, a catastrophic earthquake struck Haiti, killing over 200,000 people and destroying much of the capital, Port-au-Prince. Go to article » 

1755: Tsarina Elizabeth  establishes the first Russian university.
1866: The Royal Aeronautical Society is founded in London.
1915: Women denied the right to vote in the US.

Edmund Burke, orator, b. 1729
Jack London, writer, b. 1876

Driver wows police officer with backflip during DWI test.  This man has impressive gymnastics skills, but they weren’t enough to get him out of a sobriety test… Watch the video here.

James Webb Space Telescope discovers its first exoplanet.  The planet, located outside of our solar system, is almost exactly the same size as Earth. Astronomers are now trying to observe if it has an atmosphere.

After the discovery of a new batch of documents tied to President Biden, Kimmel joked that America is “one episode of ‘Storage Wars’ away from finding out who killed J.F.K.”

Larry Ellison got ticketed by a cop on his personal island in Hawaii.

Incredible new photos of moon’s surface are highest resolution pictures ever taken from Earth: Using a beam of radar less powerful than a microwave oven, researchers have produced the highest resolution images of the moon ever taken from Earth.  The stunning new pictures, presented Jan. 10 during a press conference at the 241st meeting of the American Astronomical Society (AAS) in Seattle, Washington, captured the landing site of NASA’s Apollo 15 mission as well as Tycho crater, a prominent impact feature in the southern lunar highlands.  Full Story: Live Science (1/11)
PHOTOS OF THE DAY

Paris, France
The original manuscript of the article ‘J’accuse… !’ by Emile Zola during the Dreyfus affair lies on display at the Richelieu site of the French National Library. The letter, published in the newspaper L’Aurore on 13 January 1898, is addressed to the then French president, Felix Faure, and defends the innocence of Gen Dreyfus who was accused of espionage. This year marks the 125th anniversary of its publication
Photograph: Teresa Suarez/EPA

London, England
The English National Ballet performs Swan Lake at the Coliseum
Photograph: Tristram Kenton/The Guardian

Medan, Indonesia
A worker cleans a Buddha statue in preparation for the upcoming lunar new year, at Satya Buddha Visudhi Marga temple in North Sumatra
Photograph: Dedi Sinuhaji/EPA
Market Closes for January 12^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1973, the Dow Jones Industrial Average peaks at a then-record high of 1051.70. It didn’t close above that level again for almost a decade — 3,583 days, to be exact.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fifth day, climbing 0.9%, or 186.15 to 20,211.20 in Toronto.
The index advanced to the highest closing level since Dec. 5.
Toronto-Dominion Bank contributed the most to the index gain, increasing 2.0%.
Tilray Brands Inc. had the largest increase, rising 8.4%.
Today, 185 of 236 shares rose, while 50 fell; 7 of 11 sectors were higher, led by energy stocks.
Insights
* So far this week, the index rose 2%
* The index declined 5.5% in the past 52 weeks. The MSCI AC Americas Index lost 16% in the same period
* The S&P/TSX Composite is 9% below its 52-week high on April 5, 2022 and 13.1% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 3.6% in the past 5 days and rose 1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.4 on a trailing basis and 12.9 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$3.24t
* 30-day price volatility rose to 13.72% compared with 13.44% in the previous session and the average of 13.63% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 76.3988| 2.2| 38/0
Financials | 58.6134| 0.9| 24/5
Materials | 34.4568| 1.4| 41/9
Communication Services | 11.6899| 1.2| 6/0
Information Technology | 8.0446| 0.7| 12/2
Real Estate | 5.0698| 1.0| 20/3
Health Care | 2.7471| 3.6| 7/0
Consumer Discretionary | -1.7436| -0.2| 7/8
Utilities | -1.9908| -0.2| 9/7
Industrials | -3.4453| -0.1| 16/10
Consumer Staples | -3.6858| -0.4| 5/6
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
TD Bank | 21.7900| 2.0| 21.2| 0.6
Canadian Natural Resources | 10.1700| 1.8| 0.4| 1.2
Cenovus Energy | 9.9240| 4.2| 6.8| -1.7
Dollarama | -2.0230| -1.3| 10.4| 2.1
Aritzia | -3.0730| -9.9| 741.8| -2.5
Waste Connections | -11.3800| -3.6| 71.2| -4.7
US
By Rita Nazareth
(Bloomberg) — Treasury yields slumped as inflation showed signs of easing, which could make the case for the Federal Reserve to slow its pace of rate hikes to prevent a harsher economic downturn.
Stocks saw mild gains.
Wall Street looked past its initial disappointment with a just in-line consumer price index to focus on the idea that an inflation peak is possibly in the rear view.
That perception is visible in the swap market, which is showing less than 50 basis points of tightening priced in for the next two Fed gatherings — a small chance of no move at all in March.
None of that means, of course, the Fed will soon declare victory over inflation.
No.
Resilient consumer demand, particularly for services, combined with a tight labor market is still a significant threat to prices.
But the figures overall show things seem to be going in the right direction, paving the way for the Fed to downshift to a quarter-point hike at its next meeting.
“Today’s inflation print is another sign that the Fed’s prescription for bringing down high inflation is working,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. “The data set was in line with
expectations, and a continuation of this trend should bring the Fed’s rate hike expectations down as we continue to get closer to the end of the Fed hiking cycle.”
To Krishna Guha at Evercore ISI, the CPI report is indeed consistent with the Fed slowing the pace of rate hikes in February.
However, he thinks the central bank would try to make it a “hawkish 25.”
“The nostalgia for a pivot is so premature,” said Solomon Tadesse, head of North American equity quant strategies at Societe Generale. “Even if the Fed stops hiking, it will keep rates high for a longer time.”
That would possibly be in line with what a raft of US officials has been recently telegraphing.
In other words, some of them have signaled openness to making a 25 basis-point rate increase right at their next meeting, while also stressing the Fed still has more work to do to tame prices — and not anticipating any rate cuts this year.
Fed Bank of Philadelphia President Patrick Harker said the central bank should tighten in quarter-point increments “going forward,” but reiterated that officials expect to hold rates at higher levels to give them time to travel through the economy.
His Richmond counterpart Thomas Barkin noted inflation has been slowing down and the Fed doesn’t need to raise rates as aggressively as it did last year.
However, Barkin added that while inflation is slowing, it’s still too high.

Key events this week:
* China trade, Friday
* US University of Michigan consumer sentiment, Friday
* Citigroup, JPMorgan, Wells Fargo report earnings, 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 0.5%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index rose 0.8%
Currencies
* The Bloomberg Dollar Spot Index fell 0.9%
* The euro rose 0.9% to $1.0852
* The British pound rose 0.6% to $1.2216
* The Japanese yen rose 2.4% to 129.21 per dollar
Cryptocurrencies
* Bitcoin rose 8.7% to $19,083.2
* Ether rose 6.9% to $1,436.26
Bonds
* The yield on 10-year Treasuries declined 11 basis points to 3.43%
* Germany’s 10-year yield declined five basis points to 2.16%
* Britain’s 10-year yield declined eight basis points to 3.33%
Commodities
* West Texas Intermediate crude rose 1% to $78.22 a barrel
* Gold futures rose 1.2% to $1,901.70 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Emily Graffeo, Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Who dares nothing, need hope for nothing. –Friedrich Von Schiller, 1759-1805.

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