June 10, 2024, Newsletter

Dear Friends,

Tangents: Happy Monday.

June 10, 1903: The first practical and commercially successful colour photography technology is introduced by the legendary Lumière brothers.
On June 10, 1967, the Six-Day War ended as Israel and Syria agreed to observe a United Nations-mediated cease-fire. Go to article >>

1935: Alcohol Anonymous founded
1943: Ball-point pen patented.

Saul Bellow, writer, b. 1915.
Judy Garland, actress, b. 1922.
F, Lee Bailey, lawyer, b. 1939.
Elizabeth Hurley, actress, b. 1965.

1st Neuralink user describes highs and lows of living with Elon Musk’s brain chip
Thirty-year-old Noland Arbaugh says the Neuralink chip has let him “reconnect with the world.” Read More.

32 haunting shipwrecks from the ancient world
Shipwrecks can reveal information about traded goods and even which rituals people partook in centuries ago. Here’s a look at shipwrecks from ancient times found around the world. Read More

Viking Age ‘treasure’ discovered by metal detectorist on Isle of Man
The silver ingot would have been used during the Viking Age in exchange for goods and services.  Full Story: Live Science (6/10)

‘The difference between alarming and catastrophic’: Cascadia megafault has 1 especially deadly section, new map reveals
The Cascadia subduction zone is more complex than researchers previously knew. The new finding could help scientists better understand the risk from future earthquakes. Read More.

James Webb telescope finds carbon at the dawn of the universe, challenging our understanding of when life could have emerged
The James Webb Space Telescope has found carbon in a galaxy just 350 million years after the Big Bang. That could mean life began much earlier too, a new study argues. Read More.

Watch Pat Sajak sign off from ‘Wheel of Fortune’ for the final time
Pat Sajak spun the wheel on “Wheel of Fortune” one last time after 41 years as the host. He shared this heartfelt message with his audience.

Carlos Alcaraz wins third grand slam title at French Open
The 21-year-old tennis star is adding to his collection of trophies.

Boston Celtics take 2-0 series lead in NBA Finals
The Boston Celtics have seized a 2-0 series lead in the NBA Finals after a Game 2 win over the Dallas Mavericks Sunday night. Here’s the latest on the best-of-seven series.

Couple finds $100,000 in cash while magnet fishing in NYC
A New York couple was shocked to discover what was inside a safe they found while fishing in a park! Watch the video here.
PHOTOS OF THE DAY

East Sussex, UK
Paragliding at sunset at Devil’s Dyke on the South Downs
Photograph: David Burr/Alamy Live News/Alamy Live News.

Candy Apple
Kyoto, Japan
Photograph: Donn Delson

North Yorkshire, UK
Fred Cowton with his restored 1939 Allis-Chalmers model U tractor at Tractor Fest at Newby Hall, Skelton-on-Ure
Photograph: Danny Lawson/PA
Market Closes for June 10^th, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1997, the Dow Jones Industrial Average closed above 7500 for the first time. The Wall Street Journal said the market’s climb “seems to inspire equal parts awe and dread among many investors.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.3% at 22,069.76 in Toronto.
The move follows the previous session’s decrease of 1%.
Shopify Inc. contributed the most to the index gain, increasing 2.5%.
Ero Copper Corp. had the largest increase, rising 5.3%.
Today, 139 of 222 shares rose, while 79 fell; 6 of 11 sectors were higher, led by materials stocks.
Insights
* This quarter, the index fell 0.4%
* The index advanced 11% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period * The S&P/TSX Composite is 2.2% below its 52-week high on May 21, 2024 and 18.1% above its low on Oct. 27, 2023
* The S&P/TSX Composite is little changed in the past 5 days and fell 1.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.8 on a trailing basis and 15.3 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$3.49t
* 30-day price volatility rose to 11.22% compared with 11.20% in the previous session and the average of 9.79% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 35.8820| 1.4| 42/8
Energy | 28.3209| 0.7| 35/4
Information Technology | 28.2401| 1.6| 10/0
Industrials | 5.7863| 0.2| 16/11
Real Estate | 0.9638| 0.2| 6/12
Health Care | 0.2113| 0.4| 2/1
Utilities | -0.0383| 0.0| 6/9
Consumer Discretionary | -4.3348| -0.6| 5/8
Financials | -5.1098| -0.1| 14/13
Communication Services | -12.1915| -1.7| 1/4
Consumer Staples | -14.9732| -1.6| 2/9
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | 17.6000| 2.5| -13.4| -15.8
Agnico Eagle Mines | 7.0430| 2.3| 21.2| 23.6
Manulife Financial | 6.5790| 1.5| 4.7| 23.3
Bank of Nova Scotia| -6.2080| -1.1| 83.3| -1.0
TD Bank | -6.2160| -0.7| 35.8| -11.3
Couche-Tard | -11.2600| -2.8| 67.4| -0.1
US
By Rita Nazareth
(Bloomberg) — Stocks eked out gains in a cautious session that saw investors positioning for the Federal Reserve decision and key inflation data.
Apple Inc. slid even after unveiling new artificial-intelligence features.
As traders braced for volatility ahead of US macroeconomic catalysts, uncertainties across the Atlantic also kept a lid on equities.
European shares slid after French President Emmanuel Macron called a legislative vote in the wake of a crushing defeat in Parliament elections.
Yields on France’s 10-year bonds hit their highest this year, while the nation’s top banks tumbled.
The euro led losses in developed-world currencies.
Wall Street’s most-prominent trading desks from JPMorgan Chase & Co. to Citigroup Inc. are urging investors prepare for a stock market jolt after Wednesday’s consumer price index and the US rate decision.
The Fed is widely expected to hold borrowing costs steady, but there’s less certainty on officials’ rate projections.
A 41% plurality of economists expect them to signal two cuts in the “dot plot,” while an equal number expect the forecasts to show just one or no cuts at all.
“The interest-rate guessing game goes on,” said Chris Larkin at E*Trade from Morgan Stanley. “Even the friendliest inflation numbers probably won’t push the Fed to act any sooner than September.”
The S&P 500 rose 0.3% to close at a fresh record.
Nvidia Corp. began trading after a 10-for-one stock split.
GameStop Corp. plunged.
The Treasury market also saw small moves as a weak $58 billion three-year auction knocked sentiment ahead of Tuesday’s $39 billion 10-year sale.
“The release of a new ‘dot plot’ outlining Fed projections for the path of rates will be the top focus,” said Jason Pride and Michael Reynolds at Glenmede.
“For fixed income investors, the Fed’s more patient higher-for-longer approach is likely to keep bond yields elevated as inflationary pressures remain.”
After Friday’s solid jobs report, traders pulled back on rate-cut expectations, pricing in the first full 25 basis points of easing in December — rather than November.
The options market is betting the S&P 500 will move 1.3% to 1.4% in either direction by Friday, based on the price of at-the-money straddles that expire that day, according to Andrew Tyler, head of US market Intelligence on JPMorgan Chase’s trading desk.
Meanwhile, investors are preparing for a Fed day stock-market move that would be the largest since March 2023, according to Stuart Kaiser, Citigroup’s head of US equity trading strategy.
Investors remain too optimistic about the timing of a Fed-rate cut, according to RBC Capital Markets strategists led by Lori Calvasina.
The benchmark index could drop to 4,900 points if the Fed holds rates at current levels, inflation proves stickier than expected and the 10-year Treasury yield remains below 5%, the strategists wrote in a note.
If the central bank were to cut rates as expected, but earnings came in below projections, the S&P 500 would trade around 5,100 points — about 5% lower than current levels, Calvasina said.
And the third — bearish — scenario sees the benchmark slumping almost 16% if stubborn inflation results in Fed rate hikes.
“The equity market has had a terrific year, but there is a current pause in the rally as the Fed comes into question,” said David Donabedian at CIBC Private Wealth US.
“There is a real chance if the economy does not slow down there will be no rate cut this year.”
More than 60% of respondents in the latest MLIV Pulse survey expect US stocks to outperform Treasuries on a volatility-adjusted basis next month.
That reading has been higher only three times in the history of the survey going back to August 2022.

Corporate Highlights:
* Activist Elliott Investment Management called for sweeping changes to Southwest Airlines Co.’s leadership to reverse what it sees as years of underperformance by one of the biggest US carriers.
* The US Supreme Court agreed to consider killing a multibillion-dollar shareholder lawsuit that accuses Meta Platforms Inc. of misleading investors about the data-harvesting scandal involving political consulting firm Cambridge Analytica.
* Advanced Micro Devices Inc. was cut at Morgan Stanley, which said investor expectations for the chipmaker’s AI business “seem too high.”
* KKR & Co., CrowdStrike Holdings Inc. and GoDaddy Inc. will join the S&P 500 as part of its latest quarterly weighting change.
* Noble Corp., the world’s biggest offshore oil-rig contractor by market value, agreed to buy its smaller rival Diamond Offshore Drilling Inc. in a deal valued at $1.6 billion.

Key events this week:
* China PPI, CPI, Wednesday
* Germany CPI, Wednesday
* US CPI, Fed rate decision, Wednesday
* G-7 leaders summit, June 13-15
* Eurozone industrial production, Thursday
* US PPI, initial jobless claims, Thursday
* Tesla annual meeting, Thursday
* New York Fed President John Williams moderates a discussion with Treasury Secretary Janet Yellen, Thursday
* Bank of Japan’s monetary policy decision, Friday
* Chicago Fed President Austan Goolsbee speaks, Friday
* US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.4%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World Index rose 0.1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.4% to $1.0762
* The British pound was little changed at $1.2730
* The Japanese yen fell 0.2% to 157.01 per dollar
Cryptocurrencies
* Bitcoin fell 0.4% to $69,434.01
* Ether fell 1% to $3,663.81
Bonds
* The yield on 10-year Treasuries advanced three basis points to 4.47%
* Germany’s 10-year yield advanced five basis points to 2.67%
* Britain’s 10-year yield advanced six basis points to 4.32%
Commodities
* West Texas Intermediate crude rose 3.1% to $77.89 a barrel
* Spot gold rose 0.7% to $2,309.10 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Stephen Kirkland, Catherine Bosley, Andre Janse van Vuuren, Selcuk Gokoluk, Jessica Menton, Kasia Klimasinska and Felice Maranz.
Have  a lovely evening.

Be magnificent!
As ever,

Carolann
It isn’t where you came from.  It’s where you’re going that counts. -Ella Fitzgerald, 1917-1996.

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