July 25, 2024, Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

Pilgrimage of St. Anne d ’Auray, France.
St. James the Great Day.

July 25, 1953, New York City: The subway token is introduced and the fare is raised to 15 cents.
1978: World’s first test-tube baby is born. The first baby conceived by in-vitro fertilization was born in Oldham, England. Go to article >>

The photographer capturing climbers at dizzying heights
Simon Carter’s images capture climbers tackling some of the world’s most stunning rock formations. See the photos here.

‘The Matrix’ turns 25 this year
Actor Keanu Reeves got emotional over how much the beloved sci-fi classic “The Matrix” changed his life over the last 25 years.

‘Spectacular and definitely hazardous’: Yellowstone geyser erupts, firing steam and debris over nearby tourists
A hydrothermal eruption Tuesday surprised visitors walking among the colorful hot springs in Yellowstone National Park’s Biscuit Basin, near the famous Old Faithful geyser. Read More.

Moat that protected ancient Jerusalem’s royalty discovered near parking lot
After a 150-year search, archaeologists found the moat near a parking lot in Jerusalem. Read More.

‘Double’ meteor shower will light up the skies next week. Here’s how to watch.
As Earth’s orbit intersects with those of two comets this month, stargazers will have a chance to view spectacular double meteor showers. Read More.

Next-gen quantum computers could be powered with high-energy lasers made 10,000 times smaller
High-powered titanium: sapphire lasers have been shrunk down with scientists planning to cram hundreds or thousands onto a four-inch wafer in a new chip. Read More.

PHOTOS OF THE DAY

Wales, UK
‘A pony watches us in the opening of Conwy Valley.’
Photograph: Rohan Armon Davies

Lord Howe Island, Australia
‘The fortnightly supply ship, Island Trader, out of Port Macquarie, anchored in the lagoon under Mounts Lidgbird and Bower.’
Photograph: Neil Andrews

​​​​​​​London, UK
‘An interesting top-down view in Kew Gardens.’
Photograph: Jonathan Sheldrick/Guardian Community
Market Closes for July 25^th, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1893, that year’s financial panic reached its low point: Nearly one-quarter of the nation’s railroads headed into bankruptcy and the directors of the NYSE almost closed down the exchange.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 0.1%, or 31.54 to 22,608.03 in Toronto.
The index dropped to the lowest closing level since July 11.
Canadian National Railway Co. contributed the most to the index decline, decreasing 2.0%.
Boyd Group Services Inc. had the largest drop, falling 8.2%.
Today, 104 of 226 shares fell, while 118 rose; 4 of 11 sectors were lower, led by industrials stocks.
Insights
* This month, the index rose 3.3%
* So far this week, the index fell 0.4%, heading for the biggest decline since the week ended June 21
* The index advanced 10% in the past 52 weeks. The MSCI AC Americas Index gained 17% in the same period
* The S&P/TSX Composite is 1.7% below its 52-week high on July 16, 2024 and 20.9% above its low on Oct. 27, 2023
* The S&P/TSX Composite is down 0.5% in the past 5 days and rose 3.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.3 on a trailing basis and 15.5 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$3.6t
* 30-day price volatility fell to 10.18% compared with 10.93% in the previous session and the average of 11.13% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | -33.3414| -1.1| 14/13
Materials | -32.5677| -1.2| 14/37
Consumer Discretionary | -3.2090| -0.4| 7/6
Consumer Staples | -2.2654| -0.2| 5/6
Health Care | 0.4807| 0.8| 3/1
Utilities | 0.5426| 0.1| 8/6
Communication Services | 1.5421| 0.2| 4/1
Energy | 3.6968| 0.1| 26/14
Real Estate | 5.2170| 1.1| 9/11
Information Technology | 10.4971| 0.6| 7/3
Financials | 17.8604| 0.3| 21/6
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Canadian National | -12.6400| -2.0| 26.6| -5.8
Barrick Gold | -12.0200| -3.8| -6.8| 2.4
Waste Connections | -10.1500| -2.3| 100.1| 22.7
Constellation Software | 6.6580| 1.1| -12.6| 32.5
Brookfield Corp | 6.9880| 1.1| 72.9| 20.5
TD Bank | 8.4200| 0.9| -38.6| -6.5
US
By Rita Nazareth
(Bloomberg) — A renewed selloff in the world’s largest technology companies dragged down the stock market, overshadowing economic data that bolstered confidence the Federal Reserve will be able to engineer a soft landing.
About 300 companies in the S&P 500 advanced — but the index itself finished lower. While economically sensitive groups such as energy, industrial and financial shares rose, the US equity benchmark’s most-influential sector came under renewed pressure.
The cohort of tech mega caps that has led the bull market continued to largely underperform smaller firms — which have rallied almost 10% in July.
As the S&P 500 marched from one record to the next in the first half of the year, some investors grew concerned that only a handful of companies were participating in the rally.
Corners of the market outside of big tech have recently barreled higher amid confidence the Fed is taming inflation without breaking the economy — and will soon be able to cut interest rates.
“We’re in the midst of a great, rate-led rotation from tech to everything else,” said Callie Cox at Ritholtz Wealth Management. “Sure, it’s been painful, but it may be worth weathering this storm for what could come on the other side. Believe in this bull market, or risk getting left behind.”
But not everyone is buying the rotation theme. At Birinyi Associates Inc., Jeff Rubin suggests what is occurring is the more typical correction. “And in a correction, it is hard to find a safe place to hide, but this will pass and will allow you to buy stocks that you wished you had bought months ago.”
The S&P 500 closed below 5,400. The Russell 2000 of smaller companies climbed 1.3% and a measure of the “Magnificent Seven” mega caps fell 1.1%.
Alphabet Inc. slumped as OpenAI is letting a limited group of users test a new set of search features.
Tesla Inc. rose after a 12% plunge. Treasury 10-year yields fell three basis points to 4.26%.
Interestingly enough, many equity traders also welcomed the fact that the latest economic figures bolstered market bets on a rate cut in September — and not earlier.
Yes, policy easing usually bodes well for Corporate America, but a rush to slash borrowing costs could actually have an adverse impact on sentiment.
It could signal officials worried about a bigger economic slowdown.
US economic growth accelerated by more than forecast in the second quarter, illustrating demand is holding up under the weight of higher borrowing costs.
Gross domestic product increased at a 2.8% annualized rate after rising 1.4% in the previous quarter.
A closely watched measure of underlying inflation ose 2.9%, easing from the first quarter but still above estimates.
“Goldilocks is getting stronger and the risk of stagflation is fading,” said David Russell at TradeStation. “There’s not much ‘stag; and not much ‘flation’.
This kind of GDP report is a potential tailwind for corporate earnings that keeps us on pace for lower rates going forward.”
To Chris Zaccarelli at Independent Advisor Alliance, the US economy is much stronger than people realize and to the extent
that markets were worried about a growth slowdown, they should breathe a sigh of relief after the GDP number.
“As long as the economy avoids a recession, then this bull market will continue through 2024 and well into 2025, so we would take advantage of any pullbacks along the way,” he noted.
Thursday’s economic figures do “lend support to the soft-landing narrative” adding that the report “should provide some relief to stressed markets,” according to Matt Peron at Janus Henderson Investors.
“The catch-up trade in smaller stocks should still have room to run,” said Yung-Yu Ma at BMO Wealth Management.
“Earnings growth among smaller companies is set to improve by year end, and the Fed will soon begin a year-long rate cutting campaign which will disproportionately benefit smaller companies.”

Corporate Highlights:
* Meta Platforms Inc. is facing its first European Union fine over allegations it abused its dominance in the classified ad market by tying Facebook Marketplace to its social network.
* EssilorLuxottica SA confirmed Meta Platforms Inc. is interested in buying a stake in the world’s biggest eyewear maker.
* American Airlines Group Inc. cut its earnings outlook as it works to bounce back from earlier blunders that will weigh on revenue and profits for the rest of 2024.
* New York Community Bancorp reported provisions for loan losses higher than every analyst’s estimate.
* Harley-Davidson Inc.’s second-quarter revenue exceeded analysts’ estimates on higher shipments and better sales of pricier motorcycles in North America. It also announced a $1 billion share buyback.
* International Business Machines Corp. reported a jump in bookings for its artificial intelligence business as customers work to implement the latest technology.
* Ford Motor Co. tumbled after a big earnings miss that the automaker blamed on a surge in warranty repair costs for older vehicles.
* Lululemon Athletica Inc. sank as analysts raised fresh concerns about the company’s ability to hit financial targets due to ongoing product execution issues and slowing active wear trends.

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 1.1%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World Index fell 0.8%
* Bloomberg Magnificent 7 Total Return Index fell 1.1%
* The Russell 2000 Index rose 1.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0845
* The British pound fell 0.4% to $1.2851
* The Japanese yen was little changed at 153.83 per dollar
Cryptocurrencies
* Bitcoin fell 2.2% to $64,622.32
* Ether fell 8% to $3,106.9
Bonds
* The yield on 10-year Treasuries declined three basis points to 4.25%
* Germany’s 10-year yield declined three basis points to 2.42%
* Britain’s 10-year yield declined three basis points to 4.13%
Commodities
* West Texas Intermediate crude rose 0.7% to $78.14 a barrel
* Spot gold fell 1.5% to $2,361.64 an ounce

This story was produced with the assistance of Bloomberg Automation.
Have a lovely evening.

Be magnificent!
As always,

Carolann
The reward for virtue is the understanding of the good deed. –Marus Tullius Cicero, 106 BC-43 BC.

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