Dear Friends,
Tangents:
January 7, 1927 – The first commercial transatlantic telephone service was inaugurated between New York and London, revolutionizing global communications. Go to article.
January 7, 1610 – Galileo Discovers Jupiter’s Moons – Italian astronomer Galileo Galilei makes his first observation of the four largest moons orbiting Jupiter, advancing our understanding of the solar system. Time and Date
January 7, 1785 – First Balloon Crossing of the English Channel – Frenchman Jean-Pierre Blanchard and American John Jeffries complete the first aerial crossing of the English Channel in a gas balloon. Jagran Josh
January 7, 1789 – First U.S. Presidential Electors Chosen – U.S. states choose electors for the first presidential election, paving the way for George Washington’s presidency. History.com
Katie Couric, TV host, b. 1957
Nicholas Cage, actor, b. 1964
The word “goodbye” comes from “God be with you,” Which was shortened over time through phrases like “God b’ wi’ ye.”
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PHOTOS OF THE DAY
Pasto, Colombia
Revellers take part in the Black and White Carnival, a Unesco-recognised cultural event symbolising racial unity and cultural diversity
Photograph: Iván Valencia/AP
Rong’an, China
High-rise buildings poke out through thick fog
Photograph: Costfoto/NurPhoto/Shutterstock
Frankfurt, Germany
Cars pass through a frozen forest in the Taunus region
Photograph: Michael Probst/AP
Market Closes for January 7th, 2026
| Market Index |
Close | Change |
| Dow Jones |
48996.08 | -466.00 |
| -0.94% | ||
| S&P 500 | 6920.93 | -23.89 |
| -0.34% | ||
| NASDAQ | 23584.28 | +37.11 |
| +0.16% | ||
| TSX | 32135.49 | -271.54 |
| -0.84% |
International Markets
| Market Index |
Close | Change |
| NIKKEI | 51961.98 | -556.10 |
| -1.06% | ||
| HANG SENG |
26458.95 | -251.50 |
| -0.94% | ||
| SENSEX | 84961.14 | -102.20 |
| -0.12% | ||
| FTSE 100* | 10048.21 | -74.52 |
| -0.74% |
Bonds
| Bonds | % Yield | Previous % Yield |
| CND. 10 Year Bond |
3.396 | 3.432 |
| CND. 30 Year Bond |
3.847 | 3.890 |
| U.S. 10 Year Bond |
4.1515 | 4.1730 |
| U.S. 30 Year Bond |
4.8324 | 4.8651 |
| BOC Close | Today | Previous |
| Canadian $ | 0.7214 | 0.7237 |
| US $ |
1.3859 | 1.3816 |
| Euro Rate 1 Euro= |
Inverse | |
| Canadian $ | 0.6178 | 1.6184 |
| US $ |
0.8563 | 1.1677 |
Commodities
| Gold | Close | Previous |
| London Gold Fix |
4490.35 | 4490.35 |
| Oil | ||
| WTI Crude Future | 55.99 | 58.32 |
Market Commentary:
On this day in 1825, America’s first great nonfinancial initial public offering was launched. The Delaware & Hudson Canal Co. went public at $100 per share. The stock hit $112 that May, slid to $71 over the next three years but then went on to be a stable growth stock for decades.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.8% at 32,135.49 in Toronto.
The move was the biggest since falling 0.9% on Dec. 1 and follows the previous session’s increase of 0.6%.
Today, financials stocks led the market lower, as 9 of 11 sectors lost; 151 of 218 shares fell, while 65 rose.
Brookfield Corp. contributed the most to the index decline, decreasing 3.8%.
Capstone Copper Corp. had the largest drop, falling 7.0%.
Insights
* The index advanced 29% in the past 52 weeks. The MSCI AC Americas Index gained 18% in the same period
* The S&P/TSX Composite is 0.9% below its 52-week high on Jan. 6, 2026 and 44.6% above its low on April 7, 2025
* The S&P/TSX Composite is up 0.8% in the past 5 days and rose 2.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.8 on a trailing basis and 20.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$5.15t
* 30-day price volatility fell to 9.74% compared with 9.96% in the previous session and the average of 12.41% over the past month
Index Points
Financials | -83.1301| -0.8| 3/21
Industrials | -81.2678| -2.4| 4/25
Energy | -43.2279| -0.9| 8/30
Materials | -37.1892| -0.6| 22/34
Information Technology | -14.8565| -0.5| 4/6
Consumer Discretionary | -8.0961| -0.8| 1/8
Utilities | -3.8784| -0.4| 6/8
Consumer Staples | -0.7539| -0.1| 3/7
Communication Services | -0.3958| -0.1| 2/2
Real Estate | 0.6215| 0.1| 10/8
Health Care | 0.6459| 0.7| 2/2
Brookfield Corp | -38.9300| -3.8| 1.7| 3.6
Canadian Pacific | | Kansas | -24.5500| -3.8| 4.1| -3.3
Canadian National | -19.1400| -3.6| -23.8| -1.3
CIBC | 6.6840| 0.8| -7.8| 1.9
Cameco | 8.7620| 2.0| 7.7| 14.5
Agnico Eagle Mines | Ltd | 9.6210| 1.1| 7.2| 8.4
MT Newswires:
The resources-heavy Toronto Stock Exchange posted its first loss of 2026 Wednesday on a combination of profit taking after three days of gains, including consecutive record closes to begin this week, and lower commodity prices, while veteran market watcher David Rosenberg warned "this will be the year in which the equity market bubble gets resolved".
The S&P/TSX Composite Index closed down 271.53 points to 32,135.49.
Dow Jones Market Data, FactSet noted going into today’s session the TSX year to date was already up 694.26 points or 2.19%.
Today it gave up 0.8 percentage points of that total, with most sectors lower, led by Industrials, down 2.4% and Energy, down 1.5%.
Helping to limit losses, the Battery Metals Index was up 3.2% and Health Care up 1.2%.
In reflecting the fresh market uncertainty, veteran economist David Rosenberg published a ‘2026 Outlook’ and in it he includes a letter that begins: "If 2025 was dominated by the Trump tariff war and the AI capital spending boom, 2026 will be the year in which the equity market bubble gets resolved".
"And" he continued, "there is a lot riding on this, because absent the capex and debt binge over the proliferation of data centers, and the equity "wealth effect" on high-end consumers which has driven the personal savings rate sharply lower, the U.S. economy would already be in recession."
Rosenberg added: "The Chinese Year of the Horse kicks off in February, and I sense we’re shifting into a stumble, not a steady gait.
The biggest risk is that, as was the case with every price bubble that followed a major technological breakthrough, gnawing realization begins to set in that perhaps just a little too much revenue and earnings growth got priced in during the initial wave of uber-enthusiasm."
Still, within its global outlook, Rosenberg Research said for Canada it sees renewed hope for long-term growth.
When the research looks at the "broader picture", it added new policies from the Canadian federal government will flow through to corporate profits and will lead to further gains in the TSX, with direct benefits to nearly half of the index (the Energy, Materials, and Industrial sectors) and upside risks to current earnings estimates.
Also weighing on investor sentiment today was the release of economic data showing it was the quietest year since 2000 for the residential market in the Greater Toronto Area.
The Toronto Regional Real Estate Board (TRREB) has released its data Wednesday morning, giving a complete picture of the year, which was expected to be better than it was, according to National Bank of Canada.
There was indeed a certain optimism surrounding the easing of monetary policy, it said, but then added: cumulative home sales in 2025 declined by 7.7% compared to 2024, making it the quietest year in terms of transactions since 2000.
National Bank said: "Although interest rates have fallen slightly due to the Bank of Canada’s policy rate cuts, this has not been enough to revive a housing market that remains unaffordable and is negatively impacted by uncertainty surrounding trade tensions.
Another factor undermining the real estate market is the significant slowdown in population growth in a province where non-permanent residents are overrepresented compared to the national average.
It should be noted that the current government’s efforts to reduce population growth disproportionately target this group."
Of commodities, gold prices had weakened by late afternoon Wednesday as traders take profits following two days of gains ahead of an annual commodity-index fund rebalancing that begins on Thursday and runs for five business days. Gold for February delivery was last seen down $32.20 to US$4.463.90 per ounce, remaining under the Dec. 26 record high of US$4,552.70.
Also, West Texas Intermediate crude oil closed sharply lower following reports the United States reached an agreement to acquire US$2 billion of oil from Venezuela after the capture of the country’s president, while a report showed
an unexpected drop in U.S. inventories last week.
WTI crude oil for February delivery closed down $1.14 to settle at US$55.99 per barrel, while March Brent oil was down $0.33 to US$59.93.
Only 10% of Canadian oil could be replaced by Venezuela in the short term, Charles St-Arnaud, chief economist at Service Credit Union and former Bank of Canada economist, told BNN Bloomberg.
It noted his analysis comes amid fears that Venezuelan crude could eventually compete with and displace Canadian barrels in key U.S. refining markets after U.S. President Donald Trump announced plans to operate and revitalize Venezuela’s oil industry following Venezuelan President Nicolas Maduro’s ouster.
US
By Cristin Flanagan and Andre Janse van Vuuren
(Bloomberg) — Wall Street optimism faded as traders digested mixed economic data and took stock of shifting geopolitical risks amid a flurry of social media posts from the US President.
Yields fell across the globe.
The S&P 500 Index slid 0.3% after notching its second intraday record of 2026 on Wednesday while the Nasdaq 100 struggled to hold onto a small gain.
Stocks lost their edge after posts from President Donald Trump sent homebuilders and defense contractors tumbling.
Valero Energy Corp. led shares of refiners higher after Trump said Venezuela would turn over millions of barrels of oil to the US.
RTX Corp. slid more than 5% after the market closed as Trump threatened to cut ties with its Raytheon defense unit.
A rally in US Treasuries was dampened after US services activity expanded in December at the fastest pace in more than a year, fueled by solid demand growth and a pickup in hiring.
Earlier data from ADP Research was better received by the bond market after it showed hiring in December rose at a moderate pace, pointing to sluggish momentum heading into 2026.
The yield on 10-year notes fell to 4.14%, with rates also moving lower across most of Europe.
Altogether, the economic data was positive according to Vital Knowledge’s Adam Crisafulli, though drops in both an equal-weighted version of the S&P 500, which gives Dollar Tree Inc. as much clout as Apple Inc., as well as a gauge of smaller firms bear watching.
“The underlying price action is poor,” Crisafulli noted.
With two quarter-point rate cuts already baked into swaps traders’ expectations for 2026 the focus will soon turn to Friday’s key December nonfarm payrolls report.
Stocks have been on a tear on optimism over solid earnings growth and inflation remaining sufficiently contained for the Fed to keep cutting borrowing costs.
That rosy view has persisted despite a worsening geopolitical backdrop, including US actions in Venezuela, its threats of intervention elsewhere and rising tensions between China and Japan.
To Evercore ISI the recent data indicate the Federal Reserve will hold rates steady at the next meeting.
“If the employment report signals that the labor market is bending but not breaking, the Fed will keep rates on hold at its January meeting, as the bar for an additional near-term cut is higher following the latest cut in December,” Marco Casiraghi wrote.
In addition to a payrolls report, traders will also be watching for the Supreme Court opinion on the legality of Trump’s global tariffs on Friday.
Precious metals pulled back, with silver falling below $80 an ounce and gold breaking a three-day winning streak.
Copper retreated from an all-time high.
Venezuela’s Oil
Oil extended losses after Washington moved to exert greater control over Venezuela’s industry.
The US European Command said US forces seized a Venezuela-linked, Russia-flagged ship in the north Atlantic.
West Texas Intermediate traded below $57 a barrel.
Investors were also keeping tabs on the primary bond market as the first week of 2026 saw a surge in global issuance, signaling strong confidence despite heightened geopolitical risks.
Issuance in the US investment-grade bond market topped $72 billion in the first two days of the week, the busiest back-to- back sessions on record, according to data compiled by Bloomberg.
European borrowers brought a record number of tranches to the market on Wednesday and are set to raise €61 billion ($71.3 billion).
Corporate News:
* Lockheed Martin Corp. and other military tech stocks fell after President Trump said he wouldn’t allow dividends or stock buybacks for defense firms.
* Warner Bros. Discovery Inc. determined that an amended takeover offer from Paramount Skydance Corp. is inferior to the deal it already has in place with Netflix Inc.
* Discord Inc. filed confidentially for an initial public offering, according to people familiar with the matter, adding to a rapidly growing pipeline of venture capital-backed tech listings.
* Nvidia Corp., countering fears about an AI spending bubble, said that an upbeat revenue forecast delivered in October has only gotten brighter due to strong demand.
* Pirelli & C. SpA is in talks with its largest shareholder, China’s Sinochem Group, over options that include reducing the Chinese conglomerate’s stake in the Italian tiremaker.
* Baidu Inc.’s artificial-intelligence chip unit has hired banks for an initial public offering in Hong Kong that may raise as much as $2 billion, according to people familiar with the matter.
* BlueScope Steel Ltd. rejected an $8.8 billion takeover bid by US steelmaker Steel Dynamics Inc. and Australian conglomerate SGH Ltd.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World Index fell 0.4%
* S&P 500 Equal Weighted Index fell 1.2%
* The Russell 2000 Index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro was little changed at $1.1678
* The British pound fell 0.3% to $1.3462
* The Japanese yen was little changed at 156.78 per dollar
Cryptocurrencies
* Bitcoin fell 2.3% to $91,074.35
* Ether fell 4.1% to $3,139.32
Bonds
* The yield on 10-year Treasuries declined three basis points to 4.14%
* Germany’s 10-year yield declined three basis points to 2.81%
* Britain’s 10-year yield declined six basis points to 4.42%
Commodities
* West Texas Intermediate crude fell 1.5% to $56.30 a barrel
* Spot gold fell 0.9% to $4,452.25 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling, James Hirai, Ronan Martin, Sujata Rao and Macarena Muñoz.
Have a lovely evening.
Be magnificent!
As ever,
Carolann
What difference does it make to the dead, the orphans and the homeless, whether the mad destruction is wrought under the name of totalitarianism or the holy name of liberty or democracy? –Mahatma Gandhi, 1869-1948.
On being asked what he thought of modern civilization: That would be a good idea –Gandhi, while visiting England in 1930.
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