July 23rd, 2024, Newsletter

Dear Friends,

Tangents:

July 23, 2000: Tiger Woods became the youngest golfer to complete a career Grand Slam when he won the British Open at age 24. Go to article >>

Discovery of ‘dark oxygen’ from deep-sea metal lumps could trigger rethink of origins of life
In a global first, scientists working in the Clarion-Clipperton Zone in the North Pacific Ocean have found that metallic nodules on the seafloor produce their own oxygen, dubbed “dark oxygen.” Read More.

Bonnie Prince Charlie narrowly escaped an assassination attempt in Scotland in 1745, musket ball hole reveals
Volunteers at Bannockburn House in Scotland discovered a musket ball hole in a wall that dates to the Jacobite Rebellion of 1745. Read More.

Is the James Webb Space Telescope really ‘breaking’ cosmology?
While headlines around the world claimed that ancient galaxies discovered by the James Webb Space Telescope were “breaking” our understanding of the Big Bang, the truth is much more nuanced — and much
more interesting. Read More.

Why did Homo sapiens outlast all other human species?
What’s the secret to Homo sapiens’ success as a species? Read More.

Prince George is 11 — see his birthday photo
Where did the time go? Britain’s royal family has released an official portrait to mark Prince George’s 11th birthday.

Hit by a hurricane, they moved abroad for a second chance
A Texas couple built a home in Thailand after their property was flooded during Hurricane Harvey in 2017. Here’s how it’s going.

PHOTOS OF THE DAY

Potsdam, Germany
Fairy lights of a circus form an arch over a waning gibbous moon
Photograph: Ralf Hirschberger/AFP/Getty Images

Wistow, England
Wistow Maze is designed to represent heptathlete Katarina Johnson-Thompson in the pose of throwing a javelin before the Olympic Games in Paris
Photograph: Jacob King/PA

​​​​​​​Dubai, United Arab Emirates
A girl plays at the Aya Universe, a new entertainment park
Photograph: Nabila Eltigi/Reuters
Market Closes for July 23^rd, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.3% at 22,813.75 in Toronto.
The move follows the previous session’s increase of 0.8%.
Canadian Natural Resources Ltd. contributed the most to the index decline, decreasing 1.8%.
Canada Goose Holdings Inc. had the largest drop, falling 3.5%.
Today, 100 of 226 shares fell, while 125 rose; 6 of 11 sectors were lower, led by energy stocks.
Insights
* This month, the index rose 4.3%, heading for the biggest advance since November 2023
* The index advanced 11% in the past 52 weeks. The MSCI AC Americas Index gained 21% in the same period
* The S&P/TSX Composite is 0.8% below its 52-week high on July 16, 2024 and 22.1% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 0.8% in the past 5 days and rose 5.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.4 on a trailing basis and 15.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.63t
* 30-day price volatility fell to 10.61% compared with 10.94% in the previous session and the average of 11.18% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -37.4743| -0.9| 12/29
Industrials | -24.0640| -0.8| 12/16
Financials | -16.0499| -0.2| 17/10
Consumer Discretionary | -1.8609| -0.2| 5/8
Consumer Staples | -0.3372| 0.0| 7/4
Communication Services | -0.0579| 0.0| 2/3
Health Care | 0.0084| 0.0| 3/1
Real Estate | 1.1101| 0.2| 14/6
Utilities | 1.8083| 0.2| 9/6
Information Technology | 7.4761| 0.4| 9/1
Materials | 10.5365| 0.4| 35/16
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian Natural Resources | -13.3300| -1.8| -42.2| 10.1
Canadian Pacific Kansas | -13.1000| -1.8| -39.2| 7.8
RBC | -12.9500| -0.9| 120.6| 13.6
Agnico Eagle Mines | 3.8390| 1.1| -52.5| 43.0
Barrick Gold | 4.4160| 1.4| -41.0| 7.0
Dollarama | 4.5200| 1.8| -29.8| 38.0
US
By Rita Nazareth
(Bloomberg) — Stocks failed to gain traction as traders waded through a deluge of corporate results for clues on whether the market will be able to extend this year’s record-breaking advance.
Following its biggest rally since early June, the S&P 500 fell.
United Parcel Service Inc. suffered its largest-ever plunge on disappointing results.
In late trading, Tesla Inc. dropped after an earnings miss.
Alphabet Inc. whipsawed even after its revenue beat analysts’ expectations.
“Given that profit expectations are high for the ‘Magnificent Seven,’ these companies will have a lot to prove when they report results,” said Anthony Saglimbene at Ameriprise. “At the same time, their outlooks will likely be
heavily scrutinized in comparison to elevated valuations.”
Upbeat earnings would be a much-needed driver for equities after a roaring first half of the year.
The market is facing pressure heading into a seasonally weak period, with volatility likely to be heightened by the US presidential election.
The S&P 500 hovered near 5,550.
A gauge of the “Magnificent Seven” underperformed the Russell 2000 of small firms.
Apple Inc. rose as “The Information” said the company is moving forward with a foldable iPhone.
Southwest Airlines Co. fell on news it’s facing enhanced scrutiny from regulators over a series of flight safety incidents.
US two-year yields edged lower after a solid $69 billion auction — which underscored market bets on rate cuts.
Occidental Petroleum Corp. tapped the investment-grade bond market with a $5 billion sale.
Oil slumped amid algorithmic selling and low summer liquidity.
After driving the rally in US stocks for most of the year, big tech slammed into a wall last week.
Investors rotated from high-flying mega-cap shares to riskier, lagging parts of the market, spurred by bets on Federal Reserve rate cuts, the threat of more trade restrictions on chipmakers and concern that the hype around artificial intelligence may be overblown.
“Google-parent Alphabet and Tesla will probably grab the most eyeballs, and their numbers will also represent a big test for the ‘Magnificent Seven’ following a significant amount of rotation out of that heavyweight club since the last consumer inflation report,” said Arthur Hogan at B. Riley Wealth.
The five biggest US technology companies are facing tough comparisons with stellar earnings cycles of the past year.
Profits for the group are projected to rise 29% in the second quarter from the same period a year earlier, data compiled by Bloomberg Intelligence show.
While still strong, that’s down from the past three quarters and, to investors, the stock reaction to earnings remains one of the biggest wild cards.
“The fact that these stocks have experienced weakness leading up to their earnings reports isn’t necessarily such a bad thing as rallies into earnings would only have the potential to set the bar unrealistically high,” said Bespoke Investment Group. “It doesn’t take a gymnast to know that the lower the bar, the easier it is to get over it.”
“We expect the earnings season to bolster confidence in the equity market,” said Solita Marcelli at UBS Global Wealth Management. “While markets could be choppy in the near term, after a period in which investor positioning had become overextended, we believe fundamentals remain strong.”
While investors are concerned about a sustained selloff in US technology mega-caps, Barclays Plc strategists say a robust earnings outlook means the cohort is still attractive after the recent rout.
The team led by Venu Krishna raised its year-end target for the S&P 500 Index to 5,600 points from 5,300, citing solid profit expectations for big tech.
“While our valuation assumption for big tech is high, growth-adjusted multiples are reasonable and we expect the group to earn into its valuations,” they said.
Bank of America Corp. clients were big sellers of US stocks as the S&P 500 posted its worst week since April, with outflows led by institutions and hedge funds as mom-and-pop investors were small net buyers.
Last week, BofA clients sold a net $7 billion of US equities, the largest exit since November 2020, quantitative strategists led by Jill Carey Hall said Tuesday.
Technology stocks saw their first outflows since May.

Corporate Highlights:
* Coca-Cola Co. raised its full-year outlook as higher prices bolstered the soft-drink giant’s performance.
* Kimberly-Clark Corp., the owner of the Kleenex brand, reported quarterly sales that trailed estimates, partially driven by retailers lowering their stocks of the company’s bath tissue and intensifying private-label competition.
* Philip Morris International Inc. raised its forecast for annual profit growth on higher demand for its Zyn nicotine pouches, as enthusiasm for tobacco alternatives rages on.
* Comcast Corp. reported second-quarter revenue that missed analysts’ estimates, dragged down by a slower season at its movie studios and theme parks.
* General Motors Co.’s profit surged 60% from a year ago, easily beating Wall Street’s expectations on strong demand for gas-powered trucks in the US.
* LVMH sales growth slowed last quarter as wealthy shoppers reined in spending on pricey Louis Vuitton handbags and Christian Dior couture.

Key events this week:
* Canada rate decision, Wednesday
* US new home sales, S&P Global PMI, Wednesday
* IBM, Deutsche Bank earnings, Wednesday
* Germany IFO business climate, Thursday
* US GDP, initial jobless claims, durable goods, Thursday
* US personal income, PCE, consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.3%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World Index was little changed
* Bloomberg Magnificent 7 Total Return Index was little changed
* The Russell 2000 Index rose 1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.4% to $1.0850
* The British pound fell 0.2% to $1.2903
* The Japanese yen rose 0.9% to 155.64 per dollar
Cryptocurrencies
* Bitcoin fell 3.9% to $65,509.96
* Ether fell 0.9% to $3,459.34
Bonds
* The yield on 10-year Treasuries was little changed at 4.25%
* Germany’s 10-year yield declined six basis points to 2.44%
* Britain’s 10-year yield declined four basis points to 4.12%
Commodities
* West Texas Intermediate crude fell 1.3% to $77.36 a barrel
* Spot gold rose 0.5% to $2,407.85 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Sagarika Jaisinghani and Jessica Menton.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
There is nothing like returning to a place that remains unchanged to find the ways in which you yourself have altered. –Nelson Rolihlahla Mandela, 1918-2013.

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