July 28, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
JULY 28, 1932: The first feature-length zombie film, White Zombie inspired bythe book and by a stage play called Zombie is released in New York City; it starred Bela Lugosi.
On July 28, 1914, Austria-Hungary declared war on Serbia. World War I began as declarations of war by other European nations quickly followed. Go to article »

Notre Dame is being restored. Again.

Area man wakes up after night on sleeper train only to find it never left the station.

Mystery behind medieval ‘bed burials’ in UK possibly solved:  On rare occasions in medieval mainland Europe, the cream of the crop — those who were wealthy or noble — were sometimes buried as if they were going to sleep, interred on their beds in what is known as a bed burial. However, it was unclear how this practice spread to England.  Now, new research reveals that bed burials gained traction in the seventh century A.D. along with the spread of Christianity and soon became a common burial rite for women.  Full Story: Live Science (7/28) 

Miners just discovered the largest pink diamond in more than 300 years: Miners in Angola have uncovered a massive pink diamond that may be the biggest gem of its kind found in the past 300 years.  The pink diamond is estimated to weigh 170 carats, making it just a smidge smaller than the 182-carat Daria-i-Noor diamond — the largest pink diamond in the world, which today is part of the Iranian National Jewels.  Full Story: Live Science (7/28) 

How much have America’s richest lost this year? This much.
PHOTOS OF THE DAY

Rhi Davies plays around with her reflection inside a mirrored structure as final preparations are made for the opening of what is billed as the world’s first ‘amazement park’, Wake the Tiger
CREDIT:  Ben Birchall/PA

Fireworks light up the night sky during the Celebration of Light
CREDIT: Andrew Chin/Getty Images

A guard of honour stands in the rain during a celebration to mark King Maha Vajiralongkorn’s 70th birthday
CREDIT: Soe Zeya Tun/Reuters
Market Closes for July 28^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1971, Wells Fargo launched the world’s first stock-index fund with $6 million from the pension fund of Samsonite. The trader executing the orders for the new fund immediately acquired the sarcastic nickname “Discount Diane.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 1%, or 202.15 to 19,456.71 in Toronto.
The index advanced to the highest closing level since June 15.
Royal Bank of Canada contributed the most to the index gain, increasing 0.9%.
Ballard Power Systems Inc. had the largest increase, rising 13.8%.
Today, 203 of 238 shares rose, while 33 fell; 10 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index rose 3.2%
* So far this week, the index rose 2.5%
* The index declined 3.8% in the past 52 weeks. The MSCI AC Americas Index lost 9.6% in the same period
* The S&P/TSX Composite is 12.4% below its 52-week high on April 5, 2022 and 7.1% above its low on July 14, 2022
* The S&P/TSX Composite is up 2.1% in the past 5 days and rose 1.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15 on a trailing basis and 12 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.09t
* 30-day price volatility fell to 16.97% compared with 19.24% in the previous session and the average of 19.47% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 37.8147| 1.1| 32/6
* Financials | 37.3499| 0.6| 24/4
* Industrials | 33.6170| 1.4| 26/3
* Materials | 32.9958| 1.6| 42/9
* Consumer Staples | 16.6936| 2.1| 10/1
* Information Technology | 14.5012| 1.3| 13/1
* Consumer Discretionary | 11.4126| 1.7| 10/2
* Utilities | 11.3573| 1.1| 14/2
* Real Estate | 8.6363| 1.6| 23/0
* Communication Services | 6.6586| 0.7| 3/4
* Health Care | -8.8847| -11.8| 6/1
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Royal Bank of Canada | 10.7400| 0.9| -4.5| -7.8
* Brookfield Asset Management | 10.2700| 1.6| 31.7| -17.5
* Agnico Eagle Mines | 10.1400| 6.4| 45.2| -19.8
* TD Bank | -4.6380| -0.5| -41.5| -15.4
* TC Energy | -7.5030| -1.6| -9.5| 18.0
* Bausch Health | -11.3800| -50.6| 185.3| -84.3
US
By Rita Nazareth
(Bloomberg) — The stock rally gained traction, defying calls from skeptics in the aftermath of the Federal Reserve decision, with traders paring bets on rate hikes as the drumbeat of recession grew louder amid an ugly economic print.
Equities climbed to a seven-week high, led by defensive groups, which are often sought after during challenging times.
Tech underperformed before Apple Inc. and Amazon.com Inc.’s results.
Bond yields sank, and swaps referencing policy meeting dates showed bets the fed funds rate will peak around 3.25% before the end of 2022, less than 100 basis points above its current level.
Investors continued to embrace the idea the Fed could soon reduce the pace of tightening as data signaled the economy is losing momentum heading into the back half of the year.
That was a day after Jerome Powell’s remarks that hikes would slow at some point, which sparked a powerful market reaction that was bashed by Fed watchers saying traders got it all wrong as tighter financial conditions are needed to vanquish inflation.
“Bad news is becoming good news,” said Michael Arone, chief investment strategist at State Street Global Advisors. “When the economy is slowing, inflation measures will likely fall. That will bring the end of the tightening cycle nearer and markets will like that.”
For LPL Financial’s Jeffrey Roach, the Fed will likely interpret the drop in real growth as confirmation to slow down the pace of tightening. “Front-loading rate hikes eventually mean smaller hikes in the near future,” he added.
FHN Financial’s Chris Low said that based on Powell’s comments Wednesday, officials will not stop hiking just because the economy is shrinking.
“They need to see real progress against inflation before they stop raising rates,” Low noted. “With that in mind, this recession will get deeper before the economy starts to heal.”
Corporate Highlights:
* Honeywell International Inc.’s profit topped estimates as a rebound in air travel and oil-and-gas investment helped spur sales.
* Hertz Global Holdings Inc. soared as the rental-car giant’s earnings beat estimates with revenue jumping on higher prices and rebound in travel.
* Harley-Davidson Inc. gained as profit and revenue beat estimates, a sign that a turnaround plan is helping the motorcycle maker overcome supply-chain headaches.
* Comcast Corp. sank after its prized internet business added no new customers last quarter, its worst performance in decades.
* Southwest Airlines Co. said it’s facing high costs and delays in aircraft deliveries from Boeing Co., tarnishing a quarter in which the carrier topped Wall Street’s profit expectations.

Here are some key events to watch this week:
* Euro-area CPI, Friday
* US PCE deflator, personal income, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.9%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 1.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro fell 0.1% to $1.0186
* The British pound was little changed at $1.2166
* The Japanese yen rose 1.7% to 134.29 per dollar
Bonds
* The yield on 10-year Treasuries declined 11 basis points to 2.67%
* Germany’s 10-year yield declined 12 basis points to 0.83%
* Britain’s 10-year yield declined nine basis points to 1.87%
Commodities
* West Texas Intermediate crude fell 0.1% to $97.12 a barrel
* Gold futures rose 2% to $1,772 an ounce
–With assistance from Andreea Papuc, Sunil Jagtiani, Abigail Moses, Cecile Gutscher, Vildana Hajric, Peyton Forte, Natalia Kniazhevich and Isabelle Lee.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

It is the wounded oyster that mends its shell with pearl. -Ralph Waldo Emerson,  1803-1882.

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