June 1, 2022 Newsletter

Dear Friends,

Tangents: Happy 1^st day of June.

1967: Lonely Hearts Club Band released.
1980: Ted Turner’s Cable News Network (CNN), headquartered in Atlanta, begins 24-hour live news broadcasts and gains worldwide attention in 1991 for its around-the-clock coverage of the Persian Gulf War.
2009: General Motors filed for Chapter 11, becoming the largest U.S. industrial company to enter bankruptcy protection.  Go to article »

Tesla should be worried about this electric luxury car.  This 1000-horsepower electric vehicle has already sold out after spending a decade in development. 
A ventriloquist surprised the judges on ‘America’s Got Talent’.  Check out this unique and shockingly believable performance.

Woodpecker gets tangled in woman’s hair:  The woman said her hairstyle looked like a nest, so understandably, the bird got a little confused. See what happened in this short video.
 
RIP Howard Johnson’s. (h/t Robert Burgess) 
PHOTOS OF THE DAY

An interactive pop art graphic has been installed at the Giant Kaleidoscope at the Camera Obscura and World of Illusions to mark the Queen’s platinum jubilee
CREDIT: Jane Barlow/PA

Celebrations for International Children’s Day
CREDIT: Vyacheslav Oseledko/AFP/Getty

A vessel on the Gloucester & Sharpness Canal en route to the Gloucester Tall Ships festival at the docks in the city
CREDIT: Ben Birchall/PA

Market Closes for June 1^st, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1999, Merrill Lynch said it was creating a fee-based financial planning business alongside its traditional commission-based brokerage business. Investors would also be allowed to trade stocks themselves through Merrill Lynch’s website, an acknowledgement that not all investors want to pay for advice with every trade.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian stocks extended losses for a second day after the Bank of Canada raised its overnight interest rate by a half-percentage point for a second consecutive time and said that it may be even “more forceful” if needed.
The S&P/TSX Composite fell slightly to 20,713.72 in Toronto.
Canadian Stocks Turn Negative After BOC Hikes Interest Rate Nutrien Ltd. contributed the most to the index decline, decreasing 3.3%.
Hut 8 Mining Corp. had the largest drop, falling 11.3%.
Today, 133 of 239 shares fell, while 104 rose; 9 of 11 sectors were lower, led by information technology stocks.
Insights
* This quarter, the index fell 5.4%, heading for the biggest decline since the first quarter of 2020
* The index advanced 3.7% in the past 52 weeks. The MSCI AC Americas Index lost 4.2% in the same period
* The S&P/TSX Composite is 6.7% below its 52-week high on April 5, 2022 and 6.3% above its low on May 12, 2022
* The S&P/TSX Composite is up 1.6% in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.9 on a trailing basis and 12.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.32t
* 30-day price volatility little changed to 21.12% compared with 21.12% in the previous session and the average of 18.64% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -27.7155| -2.5| 2/14
* Financials | -12.1780| -0.2| 12/16
* Materials | -8.9300| -0.3| 33/19
* Consumer Staples | -7.5435| -0.9| 2/9
* Utilities | -6.3283| -0.6| 2/14
* Consumer Discretionary | -5.8900| -0.9| 5/9
* Real Estate | -5.5038| -1.0| 4/18
* Communication Services | -4.9133| -0.5| 0/6
* Health Care | -2.9565| -3.2| 0/8
* * Industrials | 23.2343| 1.0| 16/14
* Energy | 43.1033| 1.1| 28/6
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Nutrien | -15.2400| -3.3| -16.7| 25.8
* Shopify | -13.7300| -3.7| -23.8| -73.7
* TD Bank | -8.4050| -0.7| -44.2| -1.0
* Suncor Energy | 8.9220| 1.8| 156.3| 63.6
* Canadian Natural Resources | 13.8000| 2.1| -11.0| 59.8
* Canadian Pacific | 14.1900| 2.5| -0.9| 1.6
US
By Isabelle Lee
(Bloomberg) — US equities started the month lower after a strong set of data suggested the Federal Reserve has not yet slowed growth enough to tamp down inflation, while JPMorgan Chase & Co.’s Jamie Dimon warned restrictive policies threaten to tip the economy into recession.
The S&P 500 fell 0.8% as data showed an unexpected advance in US manufacturing activity as well as exceptionally high job openings, fueling concern the Fed will need to get more restrictive to slow runaway price gains.
Financial firms in the index slid 1.7% after Dimon said private borrowers may be stranded as conditions tighten.
The yield on 10-year Treasuries spiked higher as traders raised bets on the path for rate hikes.
Oil rose ahead of an OPEC+ meeting to discuss supply policy.
And tech shares  outperformed, led by a 10% surge in Salesforce Inc.
The business-software giant jumped the most in nearly two years after raising its forecast in a sign demand remains robust.
The strong data landed in a market where investors are on edge over whether the Fed’s tighter policies will induce a recession, a sentiment underscored by Dimon’s comments.
The central bank has twice raised rates since March and signaled it will enact two additional 50 basis-point increases at its next meetings.
While some economic data have started to slow, according to the Fed’s Biege Book, others remain robust enough that investors now see the chances growing for a third 50-point increase.
St. Louis Fed President James Bullard urged policy makers on Wednesday to raise interest rates aggressively followed by cuts later.
“We now find ourselves in a little bit more no man’s land,” Greg Boutle, US head of equity and derivative strategy at BNP Paribas, said on Bloomberg TV. “We are in this kind of a bear market environment yet we haven’t seen recession manifest in a macro data yet. So we still think there is a path for the US economy to have a soft rather than a hard landing.”
Citigroup Inc. strategists said that after a difficult first five months of 2022, the pain may not be over yet for global equity markets.
The prospect of downward revisions to earnings estimates is the latest headwind to face stock investors, already rattled by runaway inflation and the potential impact of central-bank tightening aimed at controlling it, the strategists led by Jamie Fahy wrote in a note.
Among individual stock moves, ChargePoint Holdings Inc. slipped as analysts noted that the EV charging network firm’s margins came under pressure due to rising costs and supply-chain disruption.
Delta Air Lines Inc. also fell after raising its revenue outlook but warned it likely won’t grow capacity through the year’s end.
Europe’s Stoxx 600 Index extended declines in the wake of euro-zone figures Tuesday that showed a record jump in consumer prices, strengthening the case for the European Central Bank to lift interest rates. Meanwhile, in the US, Treasury Secretary Janet Yellen gave her most direct admission yet that she made an incorrect call last year in predicting that elevated inflation wouldn’t pose a continuing problem.
“Big picture, the market has priced in an economic slowdown but not a recession,” Ned Davis Research strategists Ed Clissold and Thanh Nguyen said in a note. “The timing and magnitude of any Fed pivot is the biggest factor in determining whether the rally can continue deep into the second half of the year.  Another hurdle for the market is that earnings estimates appear vulnerable to further downward revisions.”

Here are some key events to watch this week:
* Cleveland Fed President Loretta Mester discusses the economic outlook Thursday
* US May employment report Friday
* The UN’s Food and Agriculture Organization releases its monthly food price index at a time of maximum concern about global supplies on Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4:01 p.m. New York time
* The Nasdaq 100 fell 0.7%
* The Dow Jones Industrial Average fell 0.5%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.6%
* The euro fell 0.7% to $1.0654
* The British pound fell 0.9% to $1.2485
* The Japanese yen fell 1.2% to 130.18 per dollar
Bonds
* The yield on 10-year Treasuries advanced eight basis points to 2.93%
* Germany’s 10-year yield advanced six basis points to 1.19%
* Britain’s 10-year yield advanced five basis points to 2.16%
Commodities
* West Texas Intermediate crude rose 0.2% to $114.95 a barrel
* Gold futures rose 0.1% to $1,850.60 an ounce
–With assistance from John Viljoen.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Perseverance is not a long race; it is many short races one after another. –Walter Elliott, 1888-1958.

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