July 13, 2021 Newsletter

Dear Friends,

Tangents:
1930~First World Cup soccer championship.
Erno Rubik, inventor, b.1944.
Harrison Ford, actor, b. 1942.
On July 13, 1977, a 25-hour blackout hit the New York City area after lightning struck upstate power lines.  Go to article »

Mission to Mars | Who will be the ultimate winner of the new billionaire space race?

PHOTOS OF THE DAY

Artists rehearse an artistic performance routine inside the tropical rainforest biome at the Eden Project in Cornwall, where their summer programme of poetry, performance and art is gearing up to begin on the 19th of July, coinciding with the removal of coronavirus restrictions.  
CREDIT: BEN BIRCHALL/PA

Dippy on Tour opens at Norwich Cathedral for final stop of nationwide tour Cathedral choristers singing around Dippy at the launch
CREDIT: NORWICH CATHEDRAL/BILL SMITH

Fans celebrate the Italy team driving through Rome on a open top bus tour after they won Euro 2020
CREDIT: REUTERS/YARA NARDI

A firefighting tanker making a retardant drop over the Grandview Fire near Sisters, Oregon. The wildfire doubled in size to 6.2 square miles (16 square kilometers) Monday, forcing evacuations in the area, while the state’s biggest fire continued to burn out of control, with containment not expected until November
CREDIT: OREGON DEPARTMENT OF FORESTRY VIA AP

Market Closes for July 13^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1852, Wells, Fargo & Co. opened for business in San Francisco and Sacramento. It was founded by Henry Wells and William G. Fargo to convert gold dust into cash for miners, as well as to transport and safeguard letters, gold nuggets and other valuable by-products of the California Gold Rush.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities gained slightly Tuesday, with the S&P/TSX Composite Index rising 0.2%. Shopify led technology shares higher.  Miners including Kirkland Lake Gold and Endeavour Mining paced increases in materials. Consumer discretionary and industrials fell. The Bank of Canada is unanimously forecast to cut its weekly purchases of Canadian government bonds by one-third to C$2 billion ($1.6 billion) per week when it announces its policy decision at 10 a.m. Wednesday, according to a survey of 17 economists.
Commodities:
* Western Canadian Select crude oil traded at a $13.15 discount to West Texas Intermediate
* Spot gold rose 0.1% to $1,807.97 an ounce
FX/ Bonds:
* The Canadian dollar fell 0.5% to C$1.2516 per U.S. dollar
* The 10-year Canada government bond yield rose 3.2 basis points to 1.348%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite is rising 0.4 percent at 20,309.66 in Toronto. Shopify Inc. contributed the most to the index gain, increasing 2.7 percent. Organigram Holdings Inc. had the largest increase, rising 13.4 percent. In midday trading, 121 of 231 shares rose, while 106 fell; 7 of 11 sectors were higher, led by information technology stocks.
Insights
* The index advanced 30 percent in the past 52 weeks. The MSCI AC Americas Index gained 40 percent in the same period
* The S&P/TSX Composite is 0.4 percent below its 52-week high on July 7, 2021 and 31.7 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is little changed in the past 5 days and rose 0.9 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.4 on a trailing basis and 16.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.18t
* 30-day price volatility fell to 6.73 percent compared with 7.55 percent in the previous session and the average of 7.61 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 44.5116| 1.9| 10/2
* Materials | 44.2834| 1.9| 39/14
* Communication Services | 5.7764| 0.6| 5/2
* Health Care | 3.3428| 1.3| 6/4
* Consumer Staples | 3.1599| 0.4| 8/4
* Utilities | 2.0396| 0.2| 12/4
* Energy | 1.5478| 0.1| 11/10
* Real Estate | -1.3785| -0.2| 8/17
* Consumer Discretionary | -2.3528| -0.3| 4/9
* Industrials | -3.9424| -0.2| 8/22
* Financials | -19.9723| -0.3| 10/18
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 38.9700| 2.7| -37.0| 33.0
* Barrick Gold | 10.4500| 3.3| 12.2| -7.1
* Wheaton Precious | | | |
* Metals | 6.4790| 3.8| 16.9| 6.7
* TD Bank | -4.4310| -0.4| 51.5| 17.8
* Manulife Financial | -4.5920| -1.4| 5.7| 5.4
* Brookfield Asset | | | |
* Management | -5.1750| -0.8| -50.1| 20.6

US
By Katie Greifeld
(Bloomberg) — Stocks retreated from record highs and bond yields rose as investors debated whether the Federal Reserve risks letting inflation get out of hand. Yields climbed for a third day after the Treasury Department sold $24 billion in 30-year bonds at levels higher than just before its bidding deadline.  The benchmark S&P 500 fell for the first time in three trading sessions with JPMorgan Chase & Co. and Goldman Sachs Group Inc. reporting mixed results as second-quarter earnings season gets under way. Technology shares had outperformed much of the day, briefly sending the Nasdaq 100 to another all-time high, before finishing marginally lower. “Tech hung in because long rates fell pre-auction, and now that the whole yield curve is seeing a rise in rates, tech is being sold and it was the only thing keeping the indices up,”  said Peter Boockvar, chief investment officer for Bleakley Advisory Group.  “And with the S&P 500 and the Nasdaq 100 up almost every day for three weeks, we are overbought, so it wasn’t going to take much.”
A report earlier showed prices paid by U.S. consumers surged in June by the most since 2008, topping all forecasts and showing higher costs associated with the economy’s reopening continue to fuel inflationary pressures.  The consumer price index jumped 0.9% in June and 5.4% from the same month last year. Expectations for a solid earnings season have supported the stock rally, as investors ponder how central banks will unwind stimulus driving the recovery from the pandemic.  Still, inflationary pressures remain a concern amid speculation around when the Fed will start cutting back bond purchases. “This is not going to be music to the Fed’s ears,” Saira Malik, chief investment officer of global equities at Nuveen, said in an interview on Bloomberg TV.  “The Fed is going to be acknowledging that inflation is going to be running hotter going forward.  We’re also dealing with peak earnings growth in the second quarter and also the delta variant.  That makes for a tough climb in the second half of this year.” Oil rose to the highest price in more than 2 ½ years as prospects of an imminent flood of crude exports from Iran and other major producers waned while the International Energy Agency  warned of a deepening supply crunch.

Here are some events to watch this week:
* The Reserve Bank of New Zealand’s latest interest rate policy Wednesday
* Bank of Korea monetary decision Thursday
* China second-quarter GDP, key economic indicators Thursday
* Federal Reserve Chair Jerome Powell appears before the Senate Banking Committee to deliver the semi-annual Monetary Policy Report to Congress Thursday
* Bank of Japan interest rate decision Friday

These are some of the main moves in financial 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 0.3%
* The MSCI World index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.7% to $1.1776
* The British pound fell 0.5% to $1.3813
* The Japanese yen fell 0.2% to 110.61 per dollar
Bonds
* The yield on 10-year Treasuries advanced five basis points to 1.41%
* Germany’s 10-year yield was little changed at -0.29%
* Britain’s 10-year yield declined two basis points to 0.63%
Commodities
* West Texas Intermediate crude rose 1.6% to $75.30 a barrel
* Gold futures rose 0.1% to $1,808.60 an ounce
–With assistance from Kamaron Leach, Vildana Hajric and Natalia Kniazhevich.

Have a lovely evening.

Be magnificent!

As ever,

Carolann

Good words are worth much, and cost little. –George Herbert, 1593-1633.

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