January 8, 2023, Newsletter

Dear Friends,

Tangents: Happy Monday.
January 8, 1297: Francois Grimaldi captures the fortress protecting the Rock of Monaco, establishing his family as the rulers of Monaco.
January 8, 1851: Earth’s rotation proved.
January 8, 1987 The Dow Jones industrial average closed above 2,000 for the first time, ending the day at 2,002.25.  Go to article >>

Elvis Presley, b.1935
Stephen Hawking, physicist, b.1942.
We are just an advanced breed of monkeys on a minor planet of a very average star.  But we can understand the Universe.  That makes us something very special. –Stephen Hawking.
David Bowie, b. 1947.

Barack Obama wins his fifth Emmy
The former president scored an Emmy win on Sunday for outstanding narration for his Netflix documentary series “Working: What We Do All Day.”

Greece reopens palace where Alexander the Great was crowned
History buffs can now stroll inside the ancient palace where Alexander the Great became King of Macedonia some 2,400 years ago.

What to expect at the 58th annual Consumer Electronics Show
Thousands of people in the tech industry will descend on Las Vegas this week for CES 2024 — a showcase of the world’s latest innovations. Learn more about the conference and some of the gadgets that will be featured.

5 easy ways to live greener in 2024
If you’re interested in living a life that’s better for our planet, check out these five easy ways to reduce your carbon footprint in 2024.

New way to find oceans on distant planets revealed
Scientists have proposed a new technique to help researchers identify oceans on exoplanets, a key step to finding life outside our planet. Read More.

Satellite images show cities in the US are sinking
“Continuous unmitigated subsidence on the U.S. East Coast should cause concern,” study author Leonard Ohenhen said. Read More.

Why do we have leap years and how did they come about?
We have just entered a leap year, meaning we will get an extra day this year. But why do we need these extended years and how did they come about? Read More.

PHOTOS OF THE DAY

Glenshee, Scotland
Skier Cieran Marschal and his dog Kai enjoy the favourable weather conditions on snow-covered hills
Photograph: Murdo MacLeod/The Guardian

Pasto, Colombia
People take part in the Carnival of Blacks and Whites, a Unesco-protected event
Photograph: Xinhua/REX/Shutterstock

Torgau, eastern Germany
Farmers drive their tractors past Hartenfels Castle to protest against the federal government’s austerity plans
Photograph: Jens Schlueter/AFP/Getty Images
Market Closes for January 8^th, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1987, the Dow closed above 2000 for the first time, more than 14 years after it crossed the 1000 mark.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.7%, or 137.36 to 21,074.91 in Toronto.
The move was the biggest since rising 0.8% on Dec. 21.
Today, information technology stocks led the market higher, as 9 of 11 sectors gained; 145 of 225 shares rose, while 79 fell.
Shopify Inc. contributed the most to the index gain, increasing 4.2%.
Bombardier Inc. had the largest increase, rising 6.9%.
Insights
* The index advanced 6.4% in the past 52 weeks. The MSCI AC Americas Index gained 22% in the same period
* The S&P/TSX Composite is 0.1% below its 52-week high on Dec. 27, 2023 and 12.7% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 0.6% in the past 5 days and rose 3.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.5 on a trailing basis and 15.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.31t
* 30-day price volatility rose to 10.70% compared with 10.60% in the previous session and the average of 10.86% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 59.2387| 3.3| 9/1
Financials | 52.9788| 0.8| 26/1
Industrials | 12.7992| 0.4| 22/4
Consumer Discretionary | 12.3854| 1.7| 11/2
Utilities | 11.1198| 1.3| 15/0
Consumer Staples | 6.2821| 0.7| 9/2
Real Estate | 5.4336| 1.1| 20/1
Communication Services | 4.6724| 0.6| 4/1
Health Care | 1.3017| 2.0| 4/0
Materials | -1.3065| -0.1| 17/34
Energy | -27.5474| -0.7| 8/33
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Shopify | 35.2200| 4.2| -38.4| 0.6
Constellation Software | 12.2000| 2.6| 22.2| 4.6
TD Bank | 10.3500| 0.9| 54.6| 1.5
Canadian National | -4.0400| -0.6| -13.0| 0.4
Suncor Energy | -9.3280| -2.3| -32.6| 4.0
Canadian Natural Resources | -16.3600| -2.4| -36.0| 0.7
US
By Alex Nicholson
(Bloomberg) — US stock futures edged lower on Monday and Treasuries held steady as traders recalibrated their bets in the wake of last week’s selloff. Brent crude fell below $77 a barrel.
Contracts on the S&P 500 declined 0.2% with Boeing retreating almost 10% after a fuselage section on a 737 Max 9 aircraft ejected during a flight over the weekend.
Spirit AeroSystems Holdings Inc., which installed the panel, slumped 21%.
Oil slid almost 3% after Saudi Arabia cut official selling prices for all regions amid persistent weakness in the market.
European stocks followed declines in Asia.
Markets are looking for direction after mixed US economic data on Friday capped a week that saw global equities sink the most since October on speculation the Federal Reserve was in no rush to reduce interest rates.
Further catalysts may come from the US inflation print due Thursday and the earnings season kicking off Friday with US financial names including JPMorgan Chase & Co and Citigroup Inc.
“Multiples are already priced at rich levels,” BNP Paribas analysts including Calvin Tse and Sam Lynton-Brown wrote in a note. “With the probability of a disappointment in full-year earnings elevated, we believe that downside risks outweigh upside ones.”
According to Bloomberg’s latest Markets Live Pulse survey, the consensus estimate of sell-side analysts is that S&P 500 earnings this year will reach historic levels, but those forecasts are too high.
The poll shows an economic slowdown is the biggest risk for the bottom lines this year.
In Europe, German factory orders rose much less than anticipated in November, a discouraging sign for Europe’s largest economy, data showed on Monday.
Seizing Yields
The yield on US Treasuries declined one basis point to 4.04%.
Some traders are unfazed by the recent pullback, seeing it as a chance to seize on elevated yields before the Federal Reserve starts driving down rates.
The dynamic was on display Friday, when bond prices dipped after the Labor Department reported that job growth unexpectedly accelerated last month.
But the selloff was curtailed because buyers swooped in as 10-year Treasury yields neared 4.1%, the highest since mid-December.
In Asia, the Hang Seng China Enterprises Index closed down 2.3%, led by a selloff in technology shares.
Sentiment remains quite negative in China, Nomura Group analysts including Chetan Seth in Singapore wrote in a client note.
“There have been more signs of support for the economy, but equity investors still do not appear convinced,” they said.
Elsewhere, Brent halted last week’s rally after the Saudi price cuts.
The reductions underscored a worsening global outlook amid strong global supply, including from the US, and outweighed concern over Red Sea tensions and supply disruptions in Libya.

Key events this week:  
* Eurozone economic confidence, retail sales, consumer confidence, Monday
* Atlanta Fed President Raphael Bostic speaks, Monday
* US House returns from recess, Monday
* Australia retail sales, Tuesday
* Japan Tokyo CPI, household spending, Tuesday
* Eurozone unemployment, Tuesday
* World Economic Forum’s global risks report released, Wednesday
* US wholesale inventories, Wednesday
* Deadline for US Securities & Exchange Commission to vote on Bitcoin ETF applications, Wednesday
* New York Fed President John Williams speaks, Wednesday
* US CPI, initial jobless claims, Thursday
* China CPI, PPI, trade, Friday
* France CPI, Friday
* UK industrial production, Friday
* US PPI, Friday
* Bank of America, Bank of New York Mellon, BlackRock, Citigroup, JPMorgan Chase and Wells Fargo report fourth-quarter results, Friday
* Minneapolis Fed President Neel Kashkari speaks, Friday

Stocks
* The Stoxx Europe 600 fell 0.3% as of 11:22 a.m. London time
* S&P 500 futures fell 0.2%
* Nasdaq 100 futures fell 0.2%
* Futures on the Dow Jones Industrial Average fell 0.5%
* The MSCI Asia Pacific Index fell 0.7%
* The MSCI Emerging Markets Index fell 0.7%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0947
* The Japanese yen rose 0.1% to 144.44 per dollar
* The offshore yuan fell 0.1% to 7.1702 per dollar
* The British pound was little changed at $1.2709
Cryptocurrencies
* Bitcoin fell 0.3% to $44,113.22
* Ether fell 0.8% to $2,224.36
Bonds
* The yield on 10-year Treasuries declined one basis point to 4.04%
* Germany’s 10-year yield advanced two basis points to 2.18%
* Britain’s 10-year yield advanced three basis points to 3.82%
Commodities
* Brent crude fell 2.8% to $76.58 a barrel
* Spot gold fell 1.1% to $2,022.03 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess, Tassia Sipahutar, and Alice Gledhill.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
Things may come to those who wait, but only the things left by those who hustle. –Abraham Lincoln, 1809-1865.

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