January 19, 2023 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
January 19, 1978: The last Volkswagen Beetle made in Germany leaves VW’s plant in Emden.  Beetle production continues inn Latin America until 2003.
On Jan. 19, 1937, millionaire Howard Hughes set a transcontinental air record by flying his monoplane from Los Angeles to Newark, N.J., in 7 hours, 28 minutes and 25 seconds. Go to article » 

‘You guys got a giant great white!’: Boy hooks catch of a lifetime.  A brave 12-year-old caught a great white shark while on a fishing trip with his family. Watch the video here.

Bidder pays $2.6 million for ticket to watch Ronaldo vs. Messi:  Cristiano Ronaldo and Lionel Messi are set to face off today in a highly anticipated match. Apparently, some people are paying millions for tickets.

Rare video shows giant sea creature off the coast of Japan.  A diver and his wife encountered a huge squid off the western coast of Japan. View the rare footage here.

Medieval pendant found in a garbage pit may hold the bones of a saint:  For 900 years, a corroded medieval pendant discovered in a trash heap in Germany has been hiding a religious treasure: tiny fragments of bone, possibly from the body of a saint, a new study has found.  And further studies might reveal which saint it was.  Full Story: Live Science (1/18)

World’s oldest runestone may contain the earliest example of writing in Scandinavia:  Archaeologists have unearthed the “world’s oldest runestone,” a squat block of sandstone with etchings scribbled across its flat surface.
The ancient stone, which archaeologists unearthed in Norway, could contain the earliest example of “words recorded in writing in Scandinavia.”  Full Story: Live Science (1/18)

Sister André, world’s oldest person, dies at 118: Sister André, a French nun who held the title of the world’s oldest person, died Jan. 17 at age 118 in Toulon, a city in southern France.  Sister André, a French nun who held the title of the world’s oldest person, died Jan. 17 at age 118 in Toulon, a city in southern France. Guinness World Records declared Sister André not only the world’s oldest person but also the oldest nun on record. (She earned the former title in April 2022, after the passing of Kane Tanaka, a 119-year-old Japanese woman.)  Full Story: Live Science (1/18)
The green comet is saying hello to Earth for the first time since the Ice Age.
PHOTOS OF THE DAY

London, UK
A water feature in Jubilee Park, Canary Wharf, at this year’s Winter Lights festival which features a trail of 22 immersive light installations
Photograph: Vuk Valcic/Zuma Press Wire/Rex/Shutterstock

Batu, Ethiopia
High priests dip crosses in the water as they pray on a lake during the celebration of the epiphany
Photograph: Amanuel Sileshi/AFP/Getty Images

Bursa, Turkey
A lenticular cloud is seen during sunrise from Gökmen aerospace training center
Photograph: Halit Mirahmetoglu/Anadolu Agency/Getty Images
Market Closes for January 19^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1736, James Watt, one of the fathers of the Industrial Revolution, was born in Greenock, Scotland. He is credited with improving the steam engine it until it worked well enough to power Britain’s textile mills and railroads, making large-scale factories possible for the first time in history.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.2%, or 34.78 to 20,341.44 in Toronto.
Shopify Inc. contributed the most to the index decline, decreasing 3.0%.
Ballard Power Systems Inc. had the largest drop, falling 10.6%.
Today, 139 of 236 shares fell, while 92 rose; 9 of 11 sectors were lower, led by industrials stocks.
Insights
* So far this week, the index was little changed
* The index declined 4.1% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 8.4% below its 52-week high on April 5, 2022 and 13.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.6% in the past 5 days and rose 5.9% 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 13.1 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$3.24t
* 30-day price volatility fell to 12.61% compared with 13.20% in the previous session and the average of 13.23% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | -25.8040| -1.0| 4/21
Financials | -22.1140| -0.4| 4/25
Information Technology | -17.0815| -1.4| 6/8
Communication Services | -6.7511| -0.7| 0/6
Real Estate | -6.0066| -1.1| 3/19
Utilities | -6.0065| -0.7| 2/14
Consumer Discretionary | -4.8938| -0.7| 4/11
Health Care | -1.3356| -1.7| 2/5
Consumer Staples | -0.4583| -0.1| 4/7
Materials | 19.6965| 0.8| 35/14
Energy | 35.9612| 1.0| 28/9
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -13.1400| -3.0| 3.9| 9.1
Canadian National | -8.6100| -1.2| 14.6| 1.8
Nutrien | -6.3560| -1.7| 2.6| 3.9
Barrick Gold | 4.5130| 1.5| -39.4| 8.7
Suncor Energy | 8.2890| 2.0| -22.2| 3.8
Canadian Natural Resources | 11.0100| 1.8| -14.3| 6.5
US
By Stephen Kirkland
(Bloomberg) — US stocks fell for a third day as risks from rising interest rates to economic growth and earnings kept acgrip on sentiment.
Still, bulls can take some solace in the selloff in equities showing signs of easing, with the S&P 500 ending down 0.8%, less than the 1.6% slide a day earlier.
Despite some selling into the close, dip buyers emerged in some big tech names while traders digested the latest Fed speak.
Federal Reserve Governor Lael Brainard, considered a dove, said Thursday rates will need to stay elevated for a period to further cool inflation.
She didn’t state a preference for whether the Fed should downshift hikes at its next meeting or what peak rate she envisioned this year.
Her comments came a day after Fed hawks called for boosting rates, with St. Louis Fed President James Bullard penciling in a forecast for a rate range of 5.25% to 5.5% by the end of this year.
The current range is 4.25% to 4.5%.
Earnings provided little respite.
Procter & Gamble Co. slid after reporting shrinking sales volume.
Alcoa Corp. fell after saying aluminum shipments will be weaker than anticipated this year.
Discover Financial Services sank after the credit-card company warned write-off rates may double this year.

Treasuries stayed lower throughout the session, with the 10-year yield rising 3 basis points, mirroring moves in German bunds after the head of the European Central Bank reaffirmed her aggressive stance.
The dollar fell, while the euro and yen gained.
Adding to the somber mood, the US hit its federal debt limit and the Treasury Department began the use of special measures to avoid defaulting on any payments.
Data were mixed Thursday, with new US home construction declining for a fourth-straight month in December.
Applications for US unemployment benefits unexpectedly fell last week, sliding to the lowest level since September and underscoring a strong jobs market.
That followed figures a day earlier showing producer prices and retail sales fell, while business equipment production slumped.
“Wage growth has slowed, and broad data is weakening, but Fed officials (at least the ones that have spoken so far) are clearly reluctant to let financial conditions ease,” writes Dennis DeBusschere, of 22V Research. “The hyper focus on anchoring financial conditions will change as inflation continues to move lower/data weakens, but there are not enough data points for the Fed to be comfortable with that call yet.”
More commentary:
“The factors driving the sharp YTD rally (short covering, risk bid and lower yields) appear to be hitting their near term bounds,” writes Chris Harvey, head of equity strategy at Wells Fargo. This will likely cause the market to trade sideways-to-down over the short term.”
“Jobless claims falling for the fourth week in a row is a sign that the labor market is still seemingly able to weather the storm, though the sizable layoffs at blue chips in these past weeks indicate the economic environment is weighing on companies–especially those in the tech sector,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office. “When considering that the overall earnings picture continues to be a mixed bag, investors shouldn’t be surprised to see more volatility in the weeks ahead.”
“What just some weeks ago would have seen markets cheering the weaker data as it would have suggested correctly that the Fed’s aggressive rate hike campaign is doing its job in tamping down the demand side of the economy, is now being judged more harshly with bad news no longer enjoying a warm welcome by traders and investors alike,” Quincy Krosby, chief global strategist for LPL Financial, writes. “The equity markets, always more cheerful than their fixed income brethren, have apparently begun to interpret data with a more realistic perspective.”
Key events this week:
* Japan CPI, Friday
* China loan prime rates, Friday
* US existing home sales, Friday
* IMF’s Kristalina Georgieva and ECB’s Lagarde speak in Davos, Friday

Here are some of the main market moves:
Stocks
* The S&P 500 fell 0.8% as of 4:01 p.m. New York time
* The Nasdaq 100 fell 1%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.4% to $1.0833
* The British pound rose 0.3% to $1.2389
* The Japanese yen rose 0.4% to 128.42 per dollar
Cryptocurrencies
* Bitcoin rose 1.5% to $21,083.85
* Ether rose 2% to $1,558.82
Bonds
* The yield on 10-year Treasuries advanced two basis points to 3.39%
* Germany’s 10-year yield advanced four basis points to 2.06%
* Britain’s 10-year yield declined four basis points to 3.28%
Commodities
* West Texas Intermediate crude rose 1.2% to $80.43 a barrel
* Gold futures rose 1.4% to $1,934.10 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson, Denitsa Tsekova, Srinivasan Sivabalan, Emily Graffeo, Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

I never knew an early-rising, hard-working, prudent man, careful of his earnings,
and strictly honest who complained of bad luck. – Henry Ward Beecher, 1813-1887.

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