July 8, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.
1996: The British ban the Spice Girls releases their debut single, Wannabe, which helps make them an international sensation.
On July 8, 1839, John D. Rockefeller, who founded the Standard Oil Co. and gave more than $500 million to charitable causes, was born. Following his death on May 23, 1937, his obituary appeared in The Times. Go to article »

1,600-year-old Anglo-Saxon cemetery holds speared man and wealthy woman:  A wealthy pagan burial ground, dating from the first years of the Anglo-Saxon invasion of Britain during the fifth century A.D., has been uncovered near London ahead of a high-speed rail project, known as High Speed 2 (HS2).   The new discoveries, which include more than 100 skeletons, are among the most important archaeological finds made along the HS2 route, which will eventually link the English cities of London, Birmingham and Manchester. Other findings in recent years include a Roman market town; dozens of decapitated skeletons and a 2,000-year-old wooden pagan idol, Live Science previously reported.  Full Story: Live Science (7/8) 

PHOTOS OF THE DAY

Revellers enjoy the atmosphere during the opening day or Chupinazo of the San Fermin fiesta in Pamplona. The iconic Spanish festival has resumed in earnest this year after being twice cancelled due to Covid-19.
CREDIT: Pablo Blázquez Domínguez/Getty Images

In this image released by National Geographic, Katia Krafft stands near lava at the Krafla volcano in a scene from the documentary ‘Fire of Love’
CREDIT: National Geographic/AP

An iceberg floats at Disko Bay in western Greenland. The icebergs here originate from the Jakobshavn glacier – Sermeq Kujalleq – the most productive glacier in the northern hemisphere. The massive icebergs that detach from the glacier float for years in the waters in front of the fjord before being carried south by ocean currents.
CREDIT: Odd Andersen/AFP/Getty Images

Market Closes for July 8^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1889, the first issue of The Wall Street Journal was published by Charles Henry Dow, Edward Davis Jones and Charles M. Bergstresser
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian stocks dropped Friday as Canada’s unemployment rate hit a record low, indicating that the Bank of Canada might implement another 75 basis-point interest rate hike next week.
The S&P/TSX Composite fell 0.2% to 19,022.86 in Toronto.
The energy and materials sectors were the biggest drags on the index. The move follows the previous session’s increase of 1.8%.

This week, cannabis stocks were among the biggest gainers, while energy was among the worst performers.
Suncor Energy Inc. contributed the most to the index decline, decreasing 2.0%.
Capstone Copper Corp. had the largest drop, falling 10.2%.
Today, 143 of 238 shares fell, while 90 rose; 7 of 11 sectors were lower, led by materials stocks.
Insights
* So far this week, the index rose 0.9%, heading for the biggest advance since the week ended May 27
* The index declined 5.2% in the past 52 weeks. The MSCI AC Americas Index lost 12% in the same period
* The S&P/TSX Composite is 14.4% below its 52-week high on April 5, 2022 and 2.7% above its low on July 5, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.8 on a trailing basis and 11.6 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$3.05t
* 30-day price volatility fell to 19.82% compared with 20.23% in the previous session and the average of 19.98% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | -28.4471| -1.3| 8/43
* Energy | -14.1988| -0.4| 13/24
* Industrials | -5.7458| -0.2| 14/15
* Communication Services | -5.1905| -0.5| 2/5
* Health Care | -2.5698| -3.2| 1/6
* Real Estate | -2.1234| -0.4| 4/18
* Utilities | -0.4487| 0.0| 11/5
* Consumer Staples | 0.3492| 0.0| 8/3
* Information Technology | 3.0990| 0.3| 7/7
* Consumer Discretionary | 4.9844| 0.8| 7/6
* Financials | 9.9719| 0.2| 17/10
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Suncor Energy | -8.5720| -2.0| -51.9| 34.1
* First Quantum Minerals | -6.5220| -6.4| 55.2| -17.4
* Canadian Natural Resources | -6.2850| -1.2| -37.0| 19.6
* Constellation Software | 2.7990| 1.0| -35.9| -15.1
* Dollarama | 3.8020| 2.6| 17.3| 23.7
* TD Bank | 9.7770| 1.0| -39.0| -14.2
US
By Isabelle Lee
(Bloomberg) — US stocks notched a weekly gain after a strong jobs report alleviated recession fears but cleared the path for the Federal Reserve to keep raising interest rates to fight inflation.
The S&P 500 closed flat on Friday after struggling for  direction throughout the session.
The Nasdaq 100 rose, scoring its longest winning streak this year.
Treasuries slumped, with the two- and 10-year yield curve remaining inverted for the fourth straight day.
The Bloomberg Commodity Index suffered its longest streak of weekly losses since March 2020.
The jobs report reaffirmed the strength of the economy, fueling the Fed to stay aggressive to combat inflation.
The moderation in the number of jobs, however, was seen as a positive sign as the central bank seeks to engineer a soft landing.
A handful of Fed officials, including two of its most hawkish policy makers, said this week that they supported raising interest rates by 75 basis points for a second month in a row.
Recent data also signaled to investors that worries about a recession were overblown, a claim echoed by Fed officials this week.
“The economy is slowing but the Fed wants it to slow. So I think all the recession talk is a little bit premature right now,” Priya Misra, global head of rates strategy at TD Securities, said on Bloomberg TV. “Inflation is still a problem
and the Fed has changed their reaction function, I would argue.  They are emphasizing – overemphasizing – headline inflation over the labor market right now.”
Federal Reserve Bank of New York President John Williams reiterated the bank’s inflation target on Friday. 
Here’s what else Wall Street is saying about US payrolls:
* “We’re dealing with a central bank that actually wants concrete evidence of seeing price increases slow, and we didn’t get that today.” – Giorgio Caputo, senior fund manager at JO Hambro Capital Management.
* “Right now, the labor market is not the problem child, it is being the well-behaved kid, so the Fed thinks they can kind of ignore the labor market right now and focus all on inflation.” -Victoria Greene, chief investment officer and founding partner at G Squared Private Wealth.
* “Today’s job number should soothe fears of an imminent recession, but it does nothing to relieve fears of considerable further Fed tightening.” – Seema Shah, chief global strategist at Principal Global Investors.
* “There is a feeling of Wile E. Coyote running over the cliff, the economy is slowing, Fed hikes will almost certainly lead to a hard landing, but with employment remaining this strong, and next week’s CPI likely to stay high, the risk that the Fed will hike higher and further than they should increases.” – Steve Chiavarone, senior portfolio manager at Federated Hermes.

Earlier, shockwaves spread through the markets after Japan’s former Prime Minister Shinzo Abe was assassinated.
Bitcoin rose and is trading around $21,000.
The largest cryptocurrency by market capitalization is on course for its best weekly gain since March, helped by a return of risk appetite in global markets more broadly.

Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4:02 p.m. New York time
* The Nasdaq 100 rose 0.1%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World index rose 1.6%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.2% to $1.0181
* The British pound was little changed at $1.2032
* The Japanese yen was little changed at 136.08 per dollar
Bonds
* The yield on 10-year Treasuries advanced nine basis points to 3.08%
* Germany’s 10-year yield advanced three basis points to 1.34%
* Britain’s 10-year yield advanced 11 basis points to 2.23%
Commodities
* West Texas Intermediate crude rose 1.9% to $104.68 a barrel
* Gold futures were little changed
–With assistance from Reade Pickert, Emily Graffeo, Elaine Chen, Enrique Roces and Peyton Forte.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

The soul is dyed the color of its thoughts.  Think only on those things that are in line with your principles
and can bear the light of day.  The content of your character is your choice.  Day by day, what you do
is who you become. -Heraclitus, c.540BCE-c.480 BCE.

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