July 26, 2021 Newsletter

Dear Friends,

Tangents:
2000 A federal judge approved a $1.25 billion settlement between Swiss banks and more than a half million plaintiffs who alleged the banks had hoarded money
deposited by Holocaust victims.  Go to article »

Mick Jagger, musician, b. 1943
Aldous Huxley, author, b. 1894
George Bernard Shaw, author, b. 1856
Carl Jung, psychoanalyst, b. 1875
Sandra Bullock, actor, b. 1965

PHOTOS OF THE DAY

Spectacular image on an Osprey catching a trout in lake near Aviemore Scotland
CREDIT: CHARLOTTE GRAHAM FOR THE TELEGRAPH

Aerial dancers Georgi Thorns, 26, Hannah Tattersall, 24, and Jamie Hall, 27 suspended from 1000ft in the air on the longest high wire bridge in Europe in Honister Slate Mine in the Lake District
CREDIT: TOM MCNALLY/TRIANGLE NEWS

Tom Pidcock on his way to a gold medal in the Mountain Bike Cross Country at Tokyo Olympics
CREDIT: REUTERS/CHRISTIAN HARTMANN

Market Closes for July 26^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1786, the earliest known U.S. stock and bond tables were published in the Massachusetts Centinel.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities fell Monday with weakness in information-technology stocks. The S&P/TSX Composite Index fell 0.1%. Shopify Inc. dropped 3.9%, most since May 3. The Canadian tech giant is set to report second quarter earnings July 28.  Meanwhile, materials and energy stocks rallied ahead of big earnings reports. The takeover battle for one of Canada’s largest energy companies moved closer to resolution after Pembina Pipeline Corp. terminated its C$8.5 billion ($6.7 billion) deal to acquire Inter Pipeline Ltd., clearing a path for Brookfield Infrastructure Partners LP, which has pursued a hostile bid. On the commodities front, nickel rose for a third straight session, approaching a seven-year high on booming demand for the metal used in stainless steel and electric-vehicle batteries. Copper advanced the most in more than two months.

Commodities:
* Western Canadian Select crude oil traded at a $13.90 discount to West Texas Intermediate
* Spot gold fell 0.3% to $1,797.50 an ounce
FX/ Bonds:
* The Canadian dollar rose 0.2% to C$1.2545 per U.S. dollar
* The 10-year Canada government bond yield rose 1.0 basis point to 1.218%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite fell 0.1 percent at 20,164.96 in Toronto.  The move follows the previous session’s increase of 0.5 percent. Shopify Inc. contributed the most to the index decline, decreasing 3.9 percent.  Trillium Therapeutics Inc. had the largest drop, falling 5.3 percent. Today, 83 of 231 shares fell, while 146 rose; 6 of 11 sectors were lower, led by information technology stocks.

Insights
* This month, the index was unchanged
* The index advanced 26 percent in the past 52 weeks. The MSCI AC Americas Index gained 39 percent in the same period
* The S&P/TSX Composite is 1.1 percent below its 52-week high on July 7, 2021 and 30.8 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 2.2 percent in the past 5 days and fell 0.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.1 on a trailing basis and 16.5 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 little changed to 9.37 percent compared with 9.36 percent in the previous session and the average of 7.70 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -65.5943| -2.7| 4/8
* Industrials | -16.2997| -0.7| 15/15
* Utilities | -4.0763| -0.4| 5/11
* Communication Services | -2.3005| -0.2| 0/6
* Real Estate | -1.8440| -0.3| 11/14
* Health Care | -0.1158| 0.0| 5/5
* Consumer Discretionary | 0.2924| 0.0| 8/5
* Consumer Staples | 4.3748| 0.6| 8/5
* Financials | 5.7098| 0.1| 20/8
* Energy | 24.4976| 1.0| 20/3
* Materials | 31.8802| 1.4| 50/3
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Shopify | -63.3700| -3.9| 62.7| 38.3
* Brookfield Asset | | | |
* Management | -7.0300| -1.1| 194.6| 21.9
* Canadian National | -6.7050| -1.0| -34.6| -5.9
* Franco-Nevada | 5.7920| 2.4| 53.6| 18.6
* Suncor Energy | 6.0730| 2.2| -35.3| 25.2
* Pembina Pipeline | 6.2340| 4.1| 60.3| 36.3

US
By Richard Richtmyer and Kamaron Leach
(Bloomberg) — U.S. equities extended their run to all-time highs on Monday, with megacap technology companies leading the way higher as investors  weighed the outlook for growth at the start of a busy week of earnings and policy updates. Tesla Inc. was among those providing the biggest boost to the S&P 500, rising for the first time in four sessions and then extending gains in post market trading after second-quarter  results beat analysts’ estimates.  Gains in other heavyweights set to report earnings later this week including Apple Inc., Amazon.com Inc., Alphabet Inc. and Facebook Inc. also propelled the benchmark index. While a positive start to the earnings season has helped push stocks to their best five-day streak of gains since March, volatility returned to the market on Monday as some investors remain worried about the pace of economic growth and inflation. Concern also has been mounting that the Covid-19 delta variant will derail the recovery. The real yield on U.S. 10-year debt touched a record low ahead of this week’s Federal Reserve meeting, at which officials will likely discuss the outlook for stimulus. “We’re heading into a very eventful week with big tech earnings and a Fed meeting,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.  The market showed how resilient it was last week, with the impressive bounce-back from the sustained selling on Monday, but we expect more caution as all eyes (and ears) turn to the Fed.”
The Nasdaq 100 and Dow Jones Industrial Average also ended Monday’s session at record highs.  Seven of the main 11 S&P 500 industry groups advanced.  Energy stocks climbed the most, despite weakness in crude prices. Royal Dutch Shell Plc kicks off second-quarter earnings for oil majors on Thursday.  The earnings season is expected to show higher profits, falling debt and better returns in the sector. Trade tension is on the radar too.  China lashed out at U.S. policies in a tense start to high-level talks in Tianjin, declaring the relationship between the world’s two largest economies in a “stalemate.” Elsewhere, Bitcoin surpassed $40,000, extending recent gains amid speculation that Amazon may be considering accepting the digital currency as a method of payment.  Cryptocurrency-linked stocks including MicroStrategy Inc. and Coinbase Global Inc. also rallied.

Here are some key events to watch this week:
* Tesla, Alphabet, Apple, Facebook, Amazon report earnings this week
* Federal Reserve policy meeting concludes Wednesday
* U.S. GDP data are due Thursday

These are some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4:09 p.m. New York time
* The Nasdaq 100 rose 0.1%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.3% to $1.1805
* The British pound rose 0.5% to $1.3818
* The Japanese yen rose 0.1% to 110.39 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points to 1.29%
* Germany’s 10-year yield was little changed at -0.42%
* Britain’s 10-year yield declined one basis point to 0.57%
Commodities
* West Texas Intermediate crude rose 0.1% to $72.17 a barrel
* Gold futures fell 0.3% to $1,801.20 an ounce
–With assistance from Cormac Mullen, Kit Rees, Andreea Papuc and Namitha Jagadeesh.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

To listen closely and reply well is the highest perfection we are able to attain in the art of conversation. –Francois de la Rochefoucauld, 1613-1680.

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