Dear Friends,

Tangents:

Happy Friday Eve.

I finished reading Truth last night, Hernan Diaz’s monumental achievement, which in addition to being longlisted for The Booker Prize in 2022, was the winner of The Pulitzer Prize in 2023. I found it dazzling and highly recommend it.

January 22, 1970: The Boeing 747 went on its first regularly scheduled commercial flight, from New York to London. Go to article.

January 22, 1973: Roe vs Wade decision.

Francis Bacon, statesman, b.1561.

Lord Byron, poet, b. 1788.

Frequent flyer fraud
A former flight attendant is accused of tricking airlines into giving him free flights for four years. How did he get away with it for so long?

Razzies announce nominations
The nominees are in for the Razzies, recognizing the "best of the worst" in movies. These are the films that didn’t exactly light up the box office.

Video: Why Duke University is suing its own quarterback
Flag on the play.

Japan’s hottest souvenir
Tourists are obsessed with a $2 pair of socks from a convenience store.

Honoring Bondi Beach victims
Three tons of mourners’ flowers will be transformed into art memorializing the victims of Australia’s Bondi Beach shooting.

Aurora lights captured from space
Aurora lights shimmering over Earth were captured from space by a Roscosmos cosmonaut aboard the International Space Station during the strongest solar storm in two decades.

Coyote scrambles onto Alcatraz Island after perilous, never-before-seen swim

Experts have reacted to a viral video of a coyote swimming to Alcatraz Island in what is a surprising first for the San Francisco Bay Area. Read More.

2,400-year-old Hercules shrine and elite tombs discovered outside ancient Rome’s walls

Archaeologists have unearthed tombs and a shrine dedicated to Hercules from the time of the Roman Republic. Read More.

2.6 million-year-old jaw from extinct ‘Nutcracker Man’ is found where we didn’t expect it

A fossil jaw of a distant human relative was discovered much farther north than previously thought possible, revealing new information about diversity in human evolution. Read More.

Enormous freshwater reservoir discovered off the East Coast may be 20,000 years old and big enough to supply NYC for 800 years

An expedition off the coast of Massachusetts has confirmed the existence of a freshwater reservoir beneath the seafloor. Now, scientists are starting to understand when and how it formed. Read More.

Stunning time-lapse video captured using ‘artificial eclipse’ shows 3 massive eruptions on the sun

ESA’s Proba-3 mission, made up of twin spacecraft capable of aligning to create artificial eclipses, has captured "rare" footage of three solar prominences erupting from the sun’s mysteriously hot atmosphere.

Read More.

PHOTOS OF THE DAY

Norwood, Australia

The peloton passing during the second section of the 26th Santos Tour Down Under, a 148.1km section from Norwood to Uraidla
Photograph: Con Chronis/Getty Images

Crystal Springs, US

Tourists mingle in the water amongst the manatees at Three Sisters Springs in Florida. Large numbers of manatees congregate in the Crystal River refuge to shelter from cold spells and rest in the warmer water provided by the natural springs of Kings BayPhotograph: Bruce Bennett/Getty Images

Davos, Switzerland

Soldiers holding weather balloons walk in the snow during the World Economic Forum annual meeting. The WEF is taking place in Davos from 19 to 23 January 2026
Photograph: Ina Fassbender/AFP/Getty Images

Market Closes for January 22nd, 2026

Market Index	Close	Change
Dow Jones	49384.01	+306.78
		+0.63%
S&P 500	6913.35	+37.73
		+0.55%
NASDAQ	23436.02	+211.20
		+0.91%
TSX	33002.70	+151.17
		+0.46%

International Markets

Market Index	Close	Change
NIKKEI	53688.89	+914.25
		+1.73%
HANG SENG	26629.96	+44.90
		+0.17%
SENSEX	82307.37	+397.74
		+0.49%
FTSE 100*	10150.05	+11.96
		+0.12%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.400	3.414
CND. 30 Year Bond	3.826	3.845
U.S. 10 Year Bond	4.2449	4.2428
U.S. 30 Year Bond	4.8376	4.8621

BOC Close	Today	Previous
Canadian $	0.7250	0.7224
US $	1.3792	1.3842

Euro Rate 1 Euro=		Inverse
Canadian $	0.6170	1.6206
US $	0.8510	1.1750

Commodities

Gold	Close	Previous
London Gold Fix	4832.05	4747.80
Oil
WTI Crude Future	59.48	60.34

Market Commentary:

On this day in 1968, the stock market was red-hot but not up to the mundane task of keeping track of buying and selling. In an emergency move, the New York Stock Exchange closed 90 minutes early, at 2 p.m. The early close was meant to help inundated trading clerks catch up. At any given time, up to $1 billion worth of trades were going unmatched because of missing paperwork.

Canada

By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.5%, or 151.17 to 33,002.70 in Toronto.
The move was the biggest since rising 0.8% on Jan. 12.
Agnico Eagle Mines Ltd. contributed the most to the index gain, increasing 3.6%.
Seabridge Gold Inc. had the largest increase, rising 12.6%.
Today, 133 of 218 shares rose, while 82 fell; 6 of 11 sectors were higher, led by materials stocks.
Insights
* This month, the index rose 4.1%
* So far this week, the index was little changed
* The index advanced 30% in the past 52 weeks. The MSCI AC Americas Index gained 14% in the same period
* The S&P/TSX Composite is at its 52-week high and 48.5% above its low on April 7, 2025
* The S&P/TSX Composite is little changed in the past 5 days and rose 3.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 21.3 on a trailing basis and 20.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$5.21t
* 30-day price volatility rose to 8.95% compared with 8.92% in the previous session and the average of 10.02% over the past month
Index Points
Materials | 150.7543| 2.2| 44/12
Industrials | 22.6884| 0.7| 24/5
Financials | 17.1521| 0.2| 12/12
Consumer Staples | 9.0024| 0.8| 7/3
Communication Services | 6.9135| 1.1| 5/0
Health Care | 0.5534| 0.6| 1/1
Real Estate | -0.0457| 0.0| 13/5
Consumer Discretionary | -0.3599| 0.0| 5/4
Utilities | -1.1684| -0.1| 7/7
Energy | -17.0853| -0.3| 10/28
Information Technology | -37.2459| -1.4| 5/5
Agnico Eagle Mines | Ltd | 35.9200| 3.6| -19.3| 26.5
Wheaton Precious | Metals | 25.1300| 4.2| -15.5| 22.9
Pan American Silver| 17.7800| 7.6| 0.0| 19.5
Fairfax Financial | -16.3800| -4.7| 6.7| -11.8
Lundin Mining | -18.9100| -10.9| 154.8| 10.7
Celestica | -22.5500| -6.6| 47.1| -1.4
Seabridge Gold | 12.6| 3.3960| 22.7| 25.3
Discovery Silver| Corp | 12.2| 5.2210| 15.1| 30.5
New Gold | 12.0| 10.2900| 18.5| 45.4
Lundin Mining | -10.9| -18.9100| 154.8| 10.7
Celestica | -6.6| -22.5500| 47.1| -1.4
First Quantum | Minerals | -6.0| -11.7100| 49.4| 5.3
MT Newswires:
The Toronto Stock Exchange, on Thursday tested Monday’s record close as mid-week geopolitical tensions around the future of Greenland eased, economists still think a trade deal between Canada and the United States will be done and gold is seen shining even brighter than it is at current record highs.
The TSX closed up 151.17, or 0.45%, at 33,002.70, having been above Monday’s record finish of 33,090.96 early to mid-afternoon of today’s session.
Sectors were mixed, with Health Care and Telecom both up 1.2%, both Info Tech and Base Metals both down 1.7%.
Despite the loss for Base Metals, gold traded at another record high by midafternoon Thursday with momentum buying continuing while Goldman Sachs ssued a bullish outlook for the metal.
Gold for February delivery was last seen up $80.40 to US$4,917.90 per ounce, rising off the day-prior record close.
With the metal up 8.3% in the last month alone, Goldman Sachs raised its year-end forecast for the metal to US$5,400 per ounce, adding support for higher prices.
The Energy sector was down 1.3% as West Texas Intermediate oil closed lower as the market’s focus returned to abundant supply after a report showed a larger than expected rise in U.S. inventories last week, while geopolitical tensions eased as U.S. President Donald Trump backed down from threats to annex Greenland and impose tariffs on the European countries opposing his plan.
WTI crude oil for March delivery closed down $1.26 to settle at US$59.36 per barrel, while March Brent oil was down US$1.21 to US$64.03.
On the economic front, market watchers appear to be looking at the war of words over the last couple of days between Prime Minister Mark Carney and U.S. President Donald Trump, related to their respective speeches at the World Economic Forum, as "political noise".
Supporting this, U.S. Commerce Secretary Howard Lutnick accused Carney of, just that, making "political noise" at Davos.
Meanwhile, Thierry Wizman, Global FX & Rates Strategist at Macquarie Group, said he and the team there believe that Mexico, and Canada, "may be gaining a bit of an upper hand" in terms of trade deals to be done across North America.
As the U.S. mid-term elections approach in autumn 2026, the U.S. administration will be increasingly obligated to show that it is getting something ‘done’," Wizman noted.
"Getting the USMCA done is effectively low-hanging fruit, in this context," he said, before adding: "The US may ask Mexico to limit China’s penetration of North American supply chains, and Mexico may make permanent its recent anti-China measures in a new USMCA Agreement."
Elsewhere, National Bank’s Angelo Katsoras published a note entitled ‘Gaming out trade negotiations with the United States in 2026’ that concluded: while tensions with the United States, combined with the recent Canada-China trade agreement, could complicate the upcoming USMCA negotiations and lead to renewed threats of U.S. withdrawal, National Bank does not expect the agreement to be cancelled."
Katsoras considered two scenarios the bank considers most likely.
First: "To avoid the complications associated with congressional approval, any new commitments could be added to the existing agreement through side arrangements rather than a full renegotiation.
These measures could include stricter rules of origin, higher effective tariff barriers, increased quotas, and stronger labour requirements.
While such provisions might reduce market access in some sectors, they would preserve Canada’s and Mexico’s relative advantage by maintaining preferential access to the U.S. market."
Second: "A less favourable outcome is that the parties fail to agree on an extension to the USMCA.
While the agreement would likely remain in force, another review would be scheduled for 2027.
This would prolong the uncertainty surrounding the agreement’s long-term viability, making it more challenging for businesses to plan and invest."
Katsoras said when considering the long-term durability of many of President Trump’s tariffs, there are three points to bear in mind.
First, although Trump secured a solid victory in the 2024 election, it was not a landslide.
He received 49.8% of the popular vote, just 1.5 percentage points more than the Democratic candidate.
Second, trade measures imposed by executive order can easily be reversed by a subsequent president.
Third, public support for tariffs targeting Canada appears limited. Katsoras noted a January 2025 Angus Reid poll found that 50% of Americans opposed such tariffs, compared with 26% who supported them.
Katsoras added: "While a combination of public opinion, business lobbying and rising prices in certain sectors is likely to lead to some tariffs being rolled back by the next administration, Democratic or Republican, a return to the highly liberalised trade environment of earlier decades appears unlikely.
The United States and other economies are expected to continue prioritizing reshoring and economic security over efficiency in a global economy now characterized by reduced trust not only between geopolitical rivals, but also between traditional allies."
US
By Rita Nazareth
(Bloomberg) — The cooling of geopolitical tensions, a rally in big tech and solid economic data fueled gains in stocks, with the market remaining higher after an in-line inflation report.
Short-dated bonds fell.
Megacaps led equities higher as comments from Nvidia Corp.’s Jensen Huang bolstered the artificial-intelligence trade.
Small firms beat the S&P 500 for a 14th straight session.
JPMorgan Chase & Co. pared gains as Donald Trump sued the lender and its head Jamie Dimon over alleged debanking. In late hours, Intel Corp. gave a tepid forecast.
Treasury two-year yields climbed as strong data reinforced the argument for the Federal Reserve to keep rates on hold.
The US economy expanded in the third quarter by slightly more than initially reported, supported by stronger exports and smaller drag from inventories.
Initial jobless claims steadied at 200,000 last week.
And personal spending rose at a solid pace in November, underscoring consumer resilience.
“US consumers continue to underpin the economy,” said Lale Akoner at eToro.
“Resilient spending lowers near-term recession risk and supports corporate revenues, particularly in consumer- facing sectors. However, steady demand also means interest rates are likely to stay higher for longer.”
Meantime, European Union lawmakers are expected to vote on ratifying the bloc’s trade deal with the US, restarting the process after Trump walked back his latest threat to impose tariffs on European allies that opposed his plans to annex Greenland.
The island’s prime minister says he’s willing to go further in increasing defense, including agreeing on a permanent NATO mission.
“This episode once again highlights how headline-driven the market remains, and how quickly sentiment can flip when geopolitical risk is dialed back,” said Fawad Razaqzada at Forex.com.
The S&P 500 rose 0.55%.
A gauge of the “Magnificent Seven” shares climbed 2.1%.
The Russell 2000 of small firms hit a record.
A measure of stock volatility — the VIX — tumbled to below 16.
The yield on 10-year Treasuries was little changed at 4.25%.
The dollar lost 0.3%.
Oil sank as Ukrainian President Volodymyr Zelenskiy discussed plans for trilateral meetings with the US and Russia.
Gold rose to all-time highs.
The latest data should reassure the Fed that the economy remains on a solid footing, despite a cooler labor market, said James McCann at Edward Jones.
“There looks to be little urgency to cut rates at next week’s meeting, and the central bank could stay on hold for longer should growth remain robust into 2026 and inflation continue to run at above target rates,” he added.
Inflation-adjusted gross domestic product increased at a revised 4.4% annualized rate, the fastest in two years.
The Fed’s preferred measure of underlying inflation rose 0.2% in November from the prior month and 2.8% from a year earlier.
The core personal consumption expenditure’s price index picked up slightly from October on an annual basis.
“This is likely going to keep the Fed on pause for a few a month, at least until we get a new Fed Chair who will likely push for renewed cuts,” said Sonu Varghese at Carson Group.
This set of new data reinforces the view that the US is experiencing stronger — not hotter — growth, according to Marco Casiraghi at Evercore.
“If macro conditions continue to evolve in this favorable manner, we think the Fed will keep rates on hold before delivering a cut in June – when the new Fed chair will take over,” and then cut two more times in the second half of 2026, he said.
Recent data support the Fed adopting a cautious approach to policy changes in the near term, according to Oscar Munoz and Gennadiy Goldberg at TD Securities.
“There is now a higher burden on the data to justify further easing,” they said.
The TD strategists expect policymakers to keep rates on hold at 3.50%-3.75%.
While Fed Chair Jerome Powell is likely to sound noncommittal around near-term rate cuts, they expect him to remind markets that the median Fed official still looks for easing this year.
“Fundamentals are good and the Fed is likely to cut two or three times this year,” said Scott Helfstein at Global X.
“That continues to set up a favorable backdrop even if the calm is occasionally disrupted by geopolitical volatility.”
Speculation that Europe could leverage US assets to retaliate against Trump’s bid for Greenland has been the chatter on trading floors and at the Davos gathering this week.
Trump vowed “big retaliation” if European countries sell US assets in response to his tariff threats related to Greenland, adding pressure on them to stick with an emerging deal over the future of the island.
“If they do, they do. But you know, if that would happen, there would be a big retaliation on our part,” Trump said during a Fox Business interview at the World Economic Forum in Davos. “And we have all the cards.”
Meantime, the dollar retained its supremacy in global trade despite the persistent uncertainty associated with Trump’s policies.
The greenback’s portion of international transactions rose to 50.5% in December, up from 46.8% a month earlier, according to the latest data compiled by global financial messaging service Swift, or the Society for Worldwide Interbank Financial Telecommunication.
There’s little sign of foreign investors shunning US equities and bonds amid tensions surrounding the Trump administration’s stance toward Greenland, according to JPMorgan strategists including Nikolaos Panigirtzoglou.
“Greenland is likely to stay in the headlines in the near term, and markets remain susceptible to fresh political or geopolitical developments,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.
“But the latest stock rebound serves as a reminder that favorable fundamentals remain in the driver’s seat.”
She maintains the view that staying invested via a diversified portfolio remains the most effective way to manage market uncertainty.
Geopolitics only truly affect stock prices when they have direct effects on the factors that truly influence equity valuations, according to Steve Sosnick at Interactive Brokers.
“Unless one can draw a straight line between the global event and the revenues, earnings, or cash flows of a particular company or sector – the items that directly affect the value of a company – then geopolitics can be considered ‘background noise’ from a market viewpoint, no matter how newsworthy the events,” he said.
Companies from around the world remain focused on American markets, driven by the money they’re getting out of the US, Nasdaq Inc.
Chief Executive Officer Adena Friedman said.
“The investment firms are obligated to find the best returns,” Friedman told Bloomberg Television in Davos.
There’s been a $3 trillion increase in equity flows into the US from foreign investors in the past year, she said.
“We just have to continue to drive those outsize returns within our economy to continue the flows coming in.”
BlackRock Inc. Chief Executive Officer Larry Fink said there is no bubble in artificial intelligence, emphasizing the volume of investment needed to develop the technology.
“I don’t think there is any uncertainty about AI,” Fink said in a Bloomberg Television interview on the sidelines of the World Economic Forum. “I sincerely believe there is no bubble in the AI space.”
With small-caps are outperforming large-caps yet again, there is a clear shift in leadership underway, noted Jonathan Krinsky at BTIG.
“While there will be pullbacks, we want to stick on the side of this new trend which is still in its early days, in our view,” he said.
Retail investors shelled out an “impressive” $12.9 billion on equities this week, according to JPMorgan strategist Arun Jain.
On Tuesday, retail investors had responded to geopolitical developments by purchasing stocks, marking the third-largest single-day buying event in a year, he noted.
Meantime, trend-following funds are starting 2026 with fresh momentum, outperforming stocks and bonds after a year of false starts.
A Societe Generale index tracking major trend-following funds has climbed almost 4% in the opening weeks of the year, the second-strongest start on record in data going back to 2000.
The performance follows a rally in metals, a weakening yen and resilient global equities, just the kind of sustained price moves these strategies need to deliver returns.
Despite the fact that growth stocks are negative year-to- date, momentum names are doing well, noted Louis Navellier at Navellier & Associates.
“The broadening of returns is a positive development, and the strength of smaller companies is a major vote of confidence in broad economic growth and reflects the expectation of lower interest rates, which is more meaningful for smaller companies,” he concluded.

Corporate Highlights:
* Tesla Inc. will probably sell its Optimus robots to the public by the end of next year, according to Chief Executive Officer Elon Musk, who’s said the carmaker’s fortunes will be increasingly dependent on humanoid machines.
* SpaceX has lined up four banks to lead its initial public offering, according to people familiar with the matter, as Musk’s rocket and satellite firm moves forward with plans for the biggest-ever listing.
* Apple Inc. has expanded the job of hardware chief John Ternus to include design work, solidifying his status as a leading contender to eventually succeed Chief Executive Officer Tim Cook.
* Alphabet Inc.’s Google is rolling out a new option to personalize search results by tapping user data from the tech giant’s other applications, its latest bid to keep ahead of competition from the likes of OpenAI.
* Alibaba Group Holding Ltd. is preparing to list its chipmaking arm, tapping strong investor interest in the small circle of companies aspiring to compete with Nvidia Corp. in the hot AI accelerator business.
* Netflix Inc. co-Chief Executive Officer Ted Sarandos is planning to testify in February at a US Senate committee hearing looking into his company’s proposed $82.7 billion purchase of the streaming and studio operations of Warner Bros. Discovery Inc.
* Paramount Skydance Corp. again extended its tender offer for Warner Bros. Discovery Inc. shares and said it would ask investors to vote against a proposed sale to Netflix Inc. at a special meeting of Warner Bros. shareholders.
* Bank of America Corp. and Citigroup Inc. are exploring options they could offer up as an olive branch to satisfy President Trump’s demand to cap credit card interest rates at 10% for one year.
* US airlines are already announcing backup plans for passengers ahead of an expected winter storm this weekend that could be the biggest of the season and cause massive disruptions to air traffic nationwide.
* General Motors Co. plans to move production of its next- generation Buick Envision compact SUV, which is currently built in China, to a plant in Kansas in 2028, a sign of the pressure automakers are under to reshore output of vehicles sold in the US.
* Procter & Gamble Co.’s executives signaled sales are rebounding in the US and expressed confidence the company will meet its full-year guidance.
* General Electric Co.’s full-year outlook underwhelmed investors, a sign of high expectations on the jet-engine maker after a steep rise in the stock last year.
* Abbott Laboratories said first-quarter profit will be lower than Wall Street expected after the company was forced to offer discounts on nutrition products to lure price-conscious customers.
* Moderna Inc.’s chief executive officer said the company doesn’t plan to invest in new late-stage vaccine trials because of growing opposition to immunizations from US officials.
* Waymo will start offering its robotaxi service in Miami to the public Thursday, the first of around a dozen cities where the Alphabet Inc. company plans to launch this year.
* Freeport-McMoRan Inc. is making progress on a restart of its sprawling Indonesian copper mine, it said Thursday, after a deadly mudslide shuttered the operation that’s critical to global supply.
* Target Corp. is adding two retail veterans to its board as the beleaguered retailer seeks to reverse a sales slump under incoming Chief Executive Officer Michael Fiddelke.
* Lululemon Athletica Inc.’s “Get Low” leggings, derided for being see-through, are available for sale again online. Shoppers just have to make sure to read the disclaimers first.
* PayPal Holdings Inc. agreed to acquire Cymbio, a platform designed to help merchants sell products across AI chatbots. Terms weren’t disclosed.
* General Fusion Inc. has agreed to a merger with a blank-check company in a deal that’s expected to create one of the first publicly traded nuclear fusion technology developers.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.55% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.8%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World Index rose 0.7%
* Bloomberg Magnificent 7 Total Return Index rose 2.1%
* The Russell 2000 Index rose 0.8%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.5% to $1.1748
* The British pound rose 0.5% to $1.3502
* The Japanese yen was little changed at 158.44 per dollar
Cryptocurrencies
* Bitcoin fell 0.7% to $89,526.1
* Ether fell 2.8% to $2,943.42
Bonds
* The yield on 10-year Treasuries was little changed at 4.25%
* Germany’s 10-year yield was little changed at 2.89%
* Britain’s 10-year yield advanced two basis points to 4.47%
* The yield on 2-year Treasuries advanced three basis points to 3.61%
* The yield on 30-year Treasuries declined two basis points to 4.84%
Commodities
* West Texas Intermediate crude fell 2% to $59.43 a barrel
* Spot gold rose 1.8% to $4,919.81 an ounce

Have a lovely evening.

Be magnificent!

As ever,

Carolann

Show me the person you honor, for I know better by that the kind of person you are. For you show me what your idea of humanity is. – Thomas Carlyle, 1795-1881.

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 (Text Only)

Toll Free: 1.877.430.5895

Fax: 778.430.5828

www.carolannsteinhoff.com