January 21, 2022 Newsletter
Tangents: Happy Friday.
January 21, 1976 The supersonic Concorde jet was put into service by Britain and France. Go to article »
1915: Kiwanis International is founded.
Christian Dior, designer, b.1905.
Hubble captures a black hole forming stars, not eating them.
The most amazing statistical achievement in U.S. sports history.
Rare snow and hailstorms cover Saudi Arabian desert. The sweltering Saudi desert is now blanketed in snow? Okay Mother Nature, you’re just showing off now.
You have to win a lottery to camp at this Yosemite site. Only the lucky ones can sleep outside here!
PHOTOS OF THE DAY
A combination of satellite images taken by Himawari-8, a Japanese weather satellite operated by Japan Meteorological Agency, shows the eruption of the Hunga Tonga-Hunga Ha’apai volcano.
CREDIT: National Institute of Information and Communications Technology/AP
A long-tailed tit in a park in Sapporo, northern Japan. Also called ‘snow fairy’, the 14cm-long bird has become a favourite for photo enthusiasts.
CREDIT: Jiji Press/EPA
Livestock breeders carry hay for goats to the forest during winter in Ovacık district
Anadolu Agency/Getty Images
Market Closes for January 21st, 2022
|Bonds||% Yield||Previous % Yield|
10 Year Bond
10 Year Bond
30 Year Bond
|WTI Crude Future||86.24||86.90|
On this day in 1993, just over a year after breaking the 600 mark, the Nasdaq Composite broke the 700 barrier for the first time, finishing the day at 700.77. (It closed today at 13,768.92 – a gain of +1,864.83 % in 29 years, underscoring the oft repeated sage advice to “invest for the long term”.)
By Geoffrey Morgan
(Bloomberg) — Canadian equities tumbled Friday amid a broader market sell off for information technology, materials and energy stocks.
The S&P/TSX Composite fell for the fourth day, dropping 2.1%, or 436.79 to 20,621.39 in Toronto.
The move was the biggest since falling 2.3% on Nov. 30.
Shopify Inc., until recently Canada’s most valuable company, contributed the most to the index decline and had the largest move, decreasing 13.4%.
Information technology stocks led the market lower, as every sector except utilities declined; 216 of 241 shares fell, while 25 rose.
* In the past year, the index had a similar or greater loss two times. The next day, it declined 0.9% once and advanced 0.1% once
* This month, the index fell 2.8%
* So far this week, the index fell 3.4%, heading for the biggest decline since the week ended Oct. 30
* The index advanced 15% in the past 52 weeks. The MSCI AC Americas Index gained 12% in the same period
* The S&P/TSX Composite is 5.4% below its 52-week high on Nov. 16, 2021 and 19.2% above its low on Jan. 29, 2021
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.6 on a trailing basis and 14.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.7% 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 rose to 12.55% compared with 10.94% in the previous session and the average of 14.10% over the past month
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
* Information Technology| -140.8638| -7.8| 3/13
* Financials | -82.9469| -1.2| 1/27
* Energy | -82.2839| -2.7| 0/32
* Materials | -61.9867| -2.5| 2/53
* Industrials | -27.2399| -1.1| 5/25
* Consumer Staples | -13.0261| -1.8| 3/8
* Real Estate | -11.5576| -1.9| 1/23
* Consumer Discretionary| -10.1931| -1.4| 0/14
* Communication Services| -5.4398| -0.5| 0/7
* Health Care | -1.4765| -1.0| 1/7
* Utilities | 0.2361| 0.0| 9/7
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
* Shopify | -133.9000| -13.4| 119.0| -36.2
* TD Bank | -18.2500| -1.4| 4.8| 3.4
* Canadian Natural Resources | -17.0500| -3.2| 35.3| 19.6
* Brookfield Infrastructure | 1.4400| 0.9| 137.2| -0.9
* Fortis | 2.0110| 1.1| 92.3| -3.4
* Constellation Software | 2.7010| 1.0| 1.1| -12.1
By Vildana Hajric and Emily Graffeo
(Bloomberg) — Stocks fell, capping the worst week since the outbreak of the pandemic roiled markets, with tech shares bearing the brunt of the selloff amid shaky company earnings and prospects for higher U.S. interest rates.
The S&P 500 closed below its 200-day moving average, a key technical level, for the first time since 2020.
The tech-heavy Nasdaq 100 slid the most among major benchmarks on Friday, led by a more than 20% plunge in shares of streaming giant Netflix Inc.
Bitcoin tumbled in an extended selloff for cryptocurrencies, briefly falling below $38,000 to its lowest level in more than five months.
Volatility that has gripped markets this month showed little sign of letting up Friday, with the S&P 500 falling for a fourth day, extending losses in the period to 5.7% for the worst, albeit shortened, week since March 2020.
Option expirations of more than $3 trillion helped add to market turbulence.
“This is the longest short week, I think, in history, right?” Jay Pelosky, founder and president of TPW Investment Management, said on Bloomberg TV. “It’s only been a four-day week and it feels like it’s been two weeks rolled into one.”
The U.S. company reporting season so far has been uneven, highlighting the risk that it may fail to enliven animal spirits in the stock market.
While Netflix’s disappointing subscriber outlook sent its shares tumbling, while Peloton Interactive Inc. suggested it was poised to rebound after the darling of the stay-at-home trade was hit by a report of temporary production halts.
Markets are also bracing for rate liftoff by the Federal Reserve.
Economists surveyed by Bloomberg expect policy makers to raise interest rates in March for the first time in more than three years and shrink their balance sheet soon after.
Geopolitical tensions are also adding to the jitters.
A report that Washington is allowing some Baltic states to send U.S.-made weapons to Ukraine stoked concerns about a standoff with Russia.
“There are plenty of risks in the global economy, including geo-political events,” wrote Ethan Harris, head of global economics at Bank of America Global Research. “However, in our view, the biggest near-term risk is right in front of us: that the Fed is seriously behind the curve and has to get serious about fighting inflation.”
Demand for havens pushed the 10-year Treasury yield down more than 10 basis points in three days to 1.75%, leaving the rate lower on the week, the first decline for the period in five weeks.
The selloff in equity markets has volatility indexes pricing more turbulence near term than in the future.
The setup, known as an inverted VIX.
Such an inverted curve has occurred four other times in the past year and all coincided with market bottoms.
“We’re all going to breathe an extra sigh of relief once this session finally closes and then we can put an end to this week, because it’s been painful all around,” said Adam Phillips, managing director of Portfolio Strategy at EP Wealth Advisors in Torrance, California.
Some of the main moves in markets:
* The S&P 500 fell 1.9% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.7%
* The Dow Jones Industrial Average fell 1.3%
* The MSCI World index fell 1.8%
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro rose 0.3% to $1.1345
* The British pound fell 0.3% to $1.3557
* The Japanese yen rose 0.4% to 113.68 per dollar
* The yield on 10-year Treasuries declined five basis points to 1.76%
* Germany’s 10-year yield declined four basis points to -0.06%
* Britain’s 10-year yield declined five basis points to 1.17%
* West Texas Intermediate crude fell 0.7% to $84.91 a barrel
* Gold futures fell 0.7% to $1,832.70 an ounce
–With assistance from Sunil Jagtiani, Thyagaraju Adinarayan, Jeran Wittenstein and Anchalee Worrachate.
Have a wonderful weekend everyone.
You will never do anything in this world without courage. It is the greatest quality of the mind next to honor. c.384 BC-322 BC.
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
Toll Free: 1.877.430.5895