July 30, 2021 Newsletter

Dear Friends,

Tangents: Happy Friday.

July 30, 1935~Paperback books first introduced.

On July 30, 1945, the USS Indianapolis, which had just delivered key components of the Hiroshima atomic bomb to the Pacific island of Tinian, was torpedoed by a Japanese submarine. Only 316 out of 1,196 men survived the sinking and shark-infested waters.  Go to article »

Emily Bronte, writer, b. 1818.
Henry Moore, sculptor, b. 1848.
Henry Ford, industrialist, b. 1863.
Arnold Schwarzenegger, actor, b. 1947

‘The Green Knight’ puts a dream-like spin on Arthurian legend.  Weekend movie plans, made. 

LEGO has launched a cute typewriter set that looks and moves just like the real thing — once you put the more than 2,000 pieces together, that is. (Click here to view)

PHOTOS OF THE DAY

In South Africa, elephants old and young huddle together to keep each other safe, captured by Josef Schwarz from Germany To celebrate the CEWE Photo Award 2021, CEWE has released the 10 images that have been shortlisted as winners from each of the ten categories in the world largest photo competition
CREDIT: JOSEF SCHWARZ

Rain droplets have been captured on this dandelion clock seed to create a striking image by Petra Jung from Switzerland o celebrate the CEWE Photo Award 2021, CEWE has released the 10 images that have been shortlisted as winners from each of the ten categories in the world largest photo competition
CREDIT: PETRA JUNG

Tate Modern encourages visitors of all ages to transform the floor of the Turbine Hall into a giant work of art. It is part of a project by artist Ei Arakawa, which launched UNIQLO Tate Play, Tate Modern’s new free programme of playful art-inspired activities for families
CREDIT: GUY BELL/ALAMY LIVE NEWS

People look at a model of the sun while visiting the recently-opened Shanghai Planetarium in Shanghai
CREDIT: HECTOR RETAMAL/AFP VIA GETTY IMAGES

Market Closes for July 30^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
    On this day in 1914, just weeks after the assassination of Archduke Ferdinand in Sarajevo, stock exchanges in Berlin, Rome, and Vienna shut down as Austria declared war on Serbia. Investors panicked in New York: The Dow Jones Industrial Average tumbled 6.9% to 71.42, on immense volume of 1,307,000 shares.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities fell Friday, led by declines in energy shares including ARC Resources and Tourmaline, both falling over 5%. The S&P/TSX Composite Index fell about 0.4% even as a report showed Canada’s economy sprang back to life at the end of the second quarter, with vaccine-led re-openings spurring a return to growth. In addition, Quebecor Inc. spent C$830 million ($667 million) in Canada’s wireless spectrum auction, a move that signals an ambition to challenge the country’s three dominant telecommunications companies in 5G services.
Commodities:
* Western Canadian Select crude oil traded at a $14.50 discount to West Texas Intermediate
* Spot gold fell 0.3% to $1,822 an ounce
FX/ Bonds:
* The Canadian dollar fell 0.2% to C$1.2479 per U.S. dollar
* The 10-year Canada government bond yield fell 1.3 basis points to 1.191%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite fell 0.1 percent at 20,287.80 in Toronto. The move was the biggest since falling 1.3 percent on July 19 and follows the previous session’s increase of 0.4 percent. Shopify Inc. contributed the most to the index decline, decreasing 1.4 percent.  Denison Mines Corp. had the largest drop, falling 5.6 percent. Today, 100 of 230 shares fell, while 127 rose; 5 of 11 sectors were lower, led by financials stocks.
Insights
* This month, the index rose 0.6 percent
* So far this week, the index rose 0.5 percent
* The index advanced 24 percent in the past 52 weeks. The MSCI AC Americas Index gained 36 percent in the same period
* The S&P/TSX Composite is 0.5 percent below its 52-week high on July 7, 2021 and 31.6 percent above its low on Oct. 30, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 21.9 on a trailing basis and 16.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.19t
* 30-day price volatility fell to 9.04 percent compared with 9.32 percent in the previous session and the average of 8.03 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -38.2190| -0.6| 16/12
* Energy | -17.9661| -0.7| 5/18
* Information Technology | -16.1046| -0.7| 6/6
* Health Care | -5.7245| -2.3| 1/9
* Materials | -2.1634| -0.1| 21/30
* Real Estate | 3.1493| 0.5| 22/3
* Utilities | 5.3953| 0.6| 15/1
* Communication Services | 6.0062| 0.6| 4/3
* Consumer Staples | 7.7557| 1.0| 7/6
* Consumer Discretionary | 11.7786| 1.6| 9/3
* Industrials | 22.1245| 0.9| 21/9
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Shopify | -20.7400| -1.4| 12.0| 30.3
* TD Bank | -9.5100| -0.9| -10.7| 15.3
* Royal Bank of Canada | -8.1370| -0.7| -16.1| 20.6
* Constellation | | | |
* Software | 6.0800| 2.2| 51.1| 20.9
* Canadian National | 9.0370| 1.4| 1.3| -3.1
* Restaurant Brands | 9.3760| 5.4| 119.4| 9.4

US
By Richard Richtmyer and Vildana Hajric
(Bloomberg) — U.S. equities retreated at the tail end of a big earnings week as investors worried about slowing growth at the megacap technology companies that have helped drive the market to record highs during the pandemic. Amazon.com Inc. dropped 7.6% in its biggest decline since May 2020, contributing the most to declines in the Nasdaq 100 and S&P 500 indexes, after the company’s sales outlook missed expectations.  Tech stocks including Microsoft Corp. also weighed down the Dow Jones Industrial Average.  European equities dropped from a record and Asian stocks slid amid China’s regulatory clampdown. Markets were whipsawed this week by China’s tightening regulatory grip, a slew of earnings and the outlook for stimulus.  Amazon’s sales forecast adds to cautious forecasts from Facebook Inc. and Apple Inc., stoking a debate about whether tech stocks’ pandemic-related out performance will give way to a cyclical revival. So far, the second-quarter earnings season has been stronger than expected. About three-fifths of S&P 500 companies have reported, and more than 80% have exceeded both sales and profit estimates, according to data compiled by Bloomberg.
With stocks trading near record highs and valuations stretched, some investors are increasingly concerned that the corporate earnings recovery is peaking as the market faces risks ranging from inflation to the fast-spreading Covid-19 delta variant and China’s crackdown on private technology firms. “When you get to the valuation levels we’re at, professional investors are looking for a reason to sell,” said David Spika, president of GuideStone Capital Management, which has about $18 billion of assets under management. “It could be the delta variant, it could be China. It doesn’t matter. They’re looking for a reason to sell because they know valuations are extended and they don’t want to be the last one holding the bag.” Investors piled into cash and equities in the past week, according to a Bank of America Corp. note citing EPFR Global data. BofA strategists recommended owning defensive and quality names in the second half of the year, as “policy flip-flops will end in market correction.” Elsewhere, Pinterest Inc. plunged 18% to a two-month low after analysts said the company’s monthly user trends were disappointing. Oil prices rose, with West Texas Intermediate crude settling at $73.95 a barrel as concerns about the delta variant’s impact on fuel demand eased amid tight global supplies.  The Bloomberg Commodity Index was down more than 1%, paring a third consecutive weekly gain.
Here are the main moves in the markets:
Stocks
* The S&P 500 fell 0.5% as of 4:02 p.m. New York time
* The Nasdaq 100 fell 0.6%
* The Dow Jones Industrial Average fell 0.4%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.2% to $1.1861
* The British pound fell 0.4% to $1.3899
* The Japanese yen fell 0.2% to 109.71 per dollar
Bonds
* The yield on 10-year Treasuries declined four basis points to 1.23%
* Germany’s 10-year yield declined one basis point to -0.46%
* Britain’s 10-year yield was little changed at 0.56%
Commodities
* West Texas Intermediate crude rose 0.2% to $73.77 a barrel
* Gold futures fell 1% to $1,816.90 an ounce
–With assistance from Eric Lam and Namitha Jagadeesh.
Have a wonderful long weekend everyone.

Be magnificent!

As ever,

Carolann

The question is whether any civilization can wage relentless war on life without destroying itself,
and without losing the right to be called civilized. -Rachel Carson, 1907-1964.

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