January 27, 2022 Newsletter

Dear Friends,

Tangents:
January 27, 1996: Germany first observes the International Holocaust Remembrance Day.
January 27^th, 1880: Thomas Edison received a patent for his electric incandescent lamp.  Go to article » 
1973: Vietnam Peace Agreement signed.
Wolfgang Amadeus Mozart, b. 1756.
Mikhail Baryshnikov, dancer, b. 1948.
Lewis Carroll, writer, b. 1832.

Maybe it’s time to get medieval on our sleeping habits.

Astronomers spot never-before seen object 4,000 light-years away. 

One of the world’s most mysterious countries reopens trail for explorers.  Into the unknown!

PHOTOS OF THE DAY

Wreaths are placed at the Memorial to the Murdered Jews of Europe on International Holocaust Remembrance Day
CREDIT:  Markus Schreiber/AP

Snow covers rooftops in Jerusalem as seen from the Mount of Olives, showing the Dome of the Rock on the compound known to Muslims as Noble Sanctuary and to Jews as Temple Mount
CREDIT:  Ronen Zvulun/Reuters

A man and two little girl ride a scooter past lanterns and decorations for the upcoming Lunar New Year in the historical center of Beijing
CREDIT: Andrea Verdelli/Getty Images

Market Closes for January 27^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1938, after a protracted fight with the new SEC, the New York Stock Exchange finally recommended an internal reorganization that would install a board of governors, a salaried independent president and a specialized administrative staff. Previously, the NYSE had functioned like a private gentleman’s club, with conduct enforced mainly by unspoken codes of honor and a pro-bono president chosen from among his fellow brokers.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities fell to their lowest point in more than a month, dragged lower by technology and materials sectors, as investors weighed prospects for monetary policy tightening.
The S&P/TSX Composite dropped 0.3 percent at 20,544.11 in Toronto.
Shopify Inc. contributed the most to the index decline, decreasing 5.6 percent. Hut 8 Mining Corp. had the largest drop, falling 11 percent.
Today, 141 of 241 shares fell, while 98 rose; 5 of 11 sectors were lower, led by information technology stocks.
Insights
* This month, the index fell 3.2 percent
* So far this week, the index fell 0.4 percent
* The index advanced 18 percent in the past 52 weeks. The MSCI AC Americas Index gained 13 percent in the same period
* The S&P/TSX Composite is 5.7 percent below its 52-week high on Nov. 16, 2021 and 18.8 percent above its low on Jan. 29, 2021
* The S&P/TSX Composite is down 2.4 percent in the past 5 days and fell 3.2 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.5 on a trailing basis and 14.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.7 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.29t
* 30-day price volatility fell to 12.19 percent compared with 12.25 percent in the previous session and the average of 13.52 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -59.3221| -3.6| 3/13
* Materials | -31.6313| -1.3| 13/42
* Industrials | -4.6745| -0.2| 9/21
* Health Care | -3.6710| -2.6| 1/7
* Real Estate | -2.0099| -0.3| 10/12
* Financials | 0.6328| 0.0| 10/18
* Consumer Discretionary | 2.0543| 0.3| 7/7
* Utilities | 5.3201| 0.6| 11/5
* Consumer Staples | 5.6926| 0.8| 7/4
* Communication Services | 9.5034| 1.0| 6/1
* Energy | 26.3120| 0.9| 21/11
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Shopify | -47.6600| -5.6| 7.2| -40.3
* Bank of Montreal | -6.2680| -1.0| 86.3| 6.4
* Constellation Software | -5.4970| -2.0| -16.7| -13.6
* Royal Bank of Canada | 6.5490| 0.5| 84.0| 5.9
* Canadian Natural Resources | 8.9690| 1.7| -3.0| 22.1
* Suncor Energy | 9.1840| 2.6| 31.3| 14.6
US
By Rita Nazareth
(Bloomberg) — Stocks coughed up another sizable advance, the dollar jumped and gold plunged as investors continued to reprice assets to account for the Federal Reserve’s pivot to restrictive policy.
In a dizzying trading session, the S&P 500 erased a rally of almost 2%, while the tech-heavy Nasdaq 100 sank to its lowest since June.
Tesla Inc. tumbled 12% after the electric-car maker pushed back introductions of new models amid supply-chain challenges.
Intel Corp. dragged down fellow chipmakers on a disappointing profit forecast, while Apple Inc. dropped for an eighth straight day ahead of its results.
The dollar climbed alongside the two-year Treasury yield.
U.S. natural gas futures spiked, a sharp move that could be a sign of bearish wagers being squeezed out of the market.
More than $5 trillion has been wiped out from stock values this year as traders struggled to price the outlook for interest rates.
Markets had been factoring in four quarter-point hikes in 2022, but that edged toward five after Fed Chair Jerome Powell suggested the economy and labor market could handle a faster pace if warranted. Morgan Stanley’s strategist Andrew Sheets is doubling down on a bet that U.S. stocks are turning from leaders to laggards as they struggle to adjust to an era of tighter policy.
“Market volatility is not going away anytime soon as the ‘buy the dip’ crowd has a new motto, ‘sell the rally’,” wrote Edward Moya, senior market analyst at Oanda. “Today’s stock market rally did not last as corporate America reminded us that supply-chain troubles persist, and profit forecasts are not providing any reasons to be optimistic. Many traders are still processing what happened yesterday with the Fed.”
Other corporate highlights:
* Netflix Inc. soared as hedge fund magnate Bill Ackman acquired more than 3.1 million shares in a vote of confidence following a recent collapse in the streaming giant’s stock price.
* Comcast Corp. plans to double spending on content for its Peacock streaming service this year in an attempt to attract more paying subscribers.
* T. Rowe Price Group Inc. tumbled after the firm said client redemptions may continue with the Fed poised to raise rates.

What to watch this week:
* Euro zone economic confidence, consumer confidence Friday.
* U.S. consumer income, University of Michigan consumer sentiment Friday.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.5% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.2%
* The Dow Jones Industrial Average was little changed
* The MSCI World index fell 1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.7%
* The euro fell 0.9% to $1.1143
* The British pound fell 0.6% to $1.3380
* The Japanese yen fell 0.6% to 115.35 per dollar
Bonds
* The yield on 10-year Treasuries declined six basis points to 1.80%
* Germany’s 10-year yield advanced two basis points to -0.06%
* Britain’s 10-year yield advanced three basis points to 1.23%
Commodities
* West Texas Intermediate crude fell 0.4% to $87.01 a barrel
* Gold futures fell 2% to $1,795.80 an ounce.
–With assistance from Sunil Jagtiani, Namitha Jagadeesh, Vildana Hajric and Emily Graffeo.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Do what thy manhood bids thee do, from none but self expect applause.  He noblest lives and noblest dies
who makes and keeps his self-made laws. -Sir Francis Burton, 1821-1890.

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