June 2, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
June 2, 1953: The coronation of Queen Elizabeth II at Westminster Abbey becomes the first British coronation and one of the first major international events to be televised. Go to article »
1692: Salem Witch Trials began.
1740: Marquis de Sade, b. 1740.

Queen Elizabeth II marks 70 years on the throne.  At 96 years old, Queen Elizabeth is the longest-serving monarch in Britain’s history — and perhaps the most recognizable person in the world. We cordially invite you to take an interactive glimpse into her legacy here.

Ukraine stuns Scotland in World Cup qualifier, brings fans to tears.  It was a game like no other. The Ukrainians secured the win and gave their homeland a morale boost during the war.

An asteroid up to three times larger than a blue whale will zoom past Earth on Monday (June 6) at more than 16,000 mph (26,000 km/h), according to NASA.  The asteroid, named 2021 GT2, is predicted to safely miss our planet by more than 2.2 million miles (3.5 million kilometers) — or roughly 10 times the average distance between Earth and the moon. Astronomers first detected the space rock last year and estimated its size at between 121 and 272 feet (37 to 83 meters) wide. While that sounds pretty big — between one and three times the length of a blue whale — it isn’t large enough to be considered a potential hazard to Earth.  Full Story: Live Science (6/2) 
When an extreme drought caused a 3,400-year-old city to re-emerge from a reservoir on the Tigris River in northern Iraq, archaeologists raced to excavate it before the water returned.  The Bronze Age city, at an archaeological site called Kemune, is a relic of the Mittani Empire (also spelled Mitanni Empire), an ancient kingdom that ruled parts of northern Mesopotamia from around 1500 B.C. to 1350 B.C. Researchers have long known of the remains of the city, but they can only investigate them during droughts.  Full Story: Live Science (6/1) 

PHOTOS OF THE DAY

Performers take part in rehearsals for the outdoor show Kynren – An Epic Tale of England. The performance depicts important moments from British tradition and history across 2,000 years, including the Roman conquest of Britain, King Arthur’s search for the holy grail, and Winston Churchill’s ‘We shall fight on the beaches’ speech during the second world war
CREDIT: Owen Humphreys/PA

Gardeners David Kay and Lou Singfield tend to the wildflower meadow that has burst into flower at King’s College
CREDIT: Joe Giddens/PA

The official platinum jubilee portrait of Queen Elizabeth II
CREDITL Royal Household/Ranald Mackechnie/PA
Market Closes for June 2^nd, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1987, President Ronald Reagan nominated an economic consultant named Alan Greenspan to replace Paul Volcker as chairman of the Federal Reserve. The S&P 500 closed 0.5% lower
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 1.5% at 21,031.81 in Toronto.
The move was the biggest since rising 2% on May 13 and follows the previous session’s decrease of 0.1%.
Shopify Inc. contributed the most to the index gain, increasing 9.6%.
Endeavour Silver Corp. had the largest increase, rising 14.4%.
Today, 209 of 239 shares rose, while 28 fell; all sectors were higher, led by materials stocks.
Insights
* In the past year, the index had a similar or greater gain five times.  The next day, it advanced four times for an average 0.6% and declined 1.7% once
* This quarter, the index fell 3.9%, heading for the biggest decline since the first quarter of 2020
* So far this week, the index rose 1.4%
* The index advanced 5.3% in the past 52 weeks. The MSCI AC Americas Index lost 2.4% in the same period
* The S&P/TSX Composite is 5.3% below its 52-week high on April 5, 2022 and 8% above its low on May 12, 2022
* The S&P/TSX Composite is up 2.4% in the past 5 days and rose 1.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.1 on a trailing basis and 13 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$3.31t
* 30-day price volatility rose to 21.29% compared with 21.12% in the previous session and the average of 18.75% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 92.9096| 3.6| 51/1
* Industrials | 62.0349| 2.7| 30/0
* Financials | 52.3774| 0.8| 27/1
* Information Technology | 48.4092| 4.4| 15/0
* Energy | 20.2884| 0.5| 25/9
* Utilities | 12.4079| 1.2| 13/3
* Consumer Staples | 10.7783| 1.3| 10/1
* Consumer Discretionary | 9.1284| 1.4| 13/1
* Real Estate | 5.0876| 0.9| 17/6
* Communication Services | 3.4333| 0.3| 3/4
* Health Care | 1.2245| 1.4| 5/2
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 34.3400| 9.6| -35.0| -71.2
* Canadian Pacific | 22.9500| 3.9| 41.2| 5.6
* Canadian National | 17.9600| 3.0| 0.5| -4.3
* Cenovus Energy | -1.3870| -0.5| -26.5| 93.6
* Fairfax Financial Holdings | -1.8260| -1.5| -45.2| 10.7
* Imperial Oil | -2.0440| -1.9| -63.4| 51.7
US
By Isabelle Lee and Elaine Chen
(Bloomberg) — US stocks snapped a two-day slide to rally ahead of Friday’s nonfarm payroll report, as traders expect to see cooler labor demand, which could alleviate some inflation concerns.
The S&P 500 rose 1.8%, led by gains in consumer discretionary, while the tech-heavy Nasdaq 100 added 2.8%.
Microsoft Corp. erased earlier losses that came after it pared its outlook on the impact from a strong dollar.
Treasuries were steady, with US 10-year yields reaching 2.91%.
“Outside of this recent rally, very little about this market has changed from a technical standpoint and that makes us wary of calling the all-clear,” said Scott Brown, technical market strategist at LPL Financial. “We believe a slight lean toward defensive sectors and away from the growth-oriented areas of this market still make sense.”
Earlier, markets lacked clear direction as traders mulled private hiring data, which showed the smallest gain since the pandemic recovery began, and factory orders, which came in lower than forecast.
Federal Reserve Vice Chair Lael Brainard also said it’s hard to see a case for a September pause in rate hikes and that increases of 50 basis points in June and July seemed reasonable.
“Fed-friendly ADP and factory orders reports combined with a rational reaction to the Microsoft FX guide has investors feeling more constructive,” said Art Hogan, chief market strategist at National Securities. “Add to all of that OPEC+ is increasing quotas, which will certainly help all of our No. 1 concern, inflation.”
OPEC+ agreed to increase the size of its oil-supply hikes by about 50% in July and August, bending to pressure by major consumers including the US to fill the gap created by sanctions on Russian supplies. Lower oil prices could ease inflationary pressures. Yet investors remain on edge as some fear the pace of monetary tightening could throw the economy into a recession.
WTI crude oil gained 2% after earlier losses.
Market participants believe the Fed will “continue to lower the balance sheet but be patient on raising interest rates as they see the economic data points come in,” Chad Morganlander, senior portfolio manager at Washington Crossing Advisors, said by phone. “That wait-and-see bias is one of the reasons why the market overall has rallied off the bottom in such a substantial way, and you’re seeing the follow-through in that trade today.”
Among individual stock moves, Tesla Inc., Nvidia Corp. and Amazon.com Inc. led gainers by value.
Hewlett Packard Enterprise Co. was down after lowering its profit forecast on supply issues. 
Here are some key events to watch this week:
* 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 rose 1.8% as of 4:07 p.m. New York time
* The Nasdaq 100 rose 2.8%
* The Dow Jones Industrial Average rose 1.3%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index fell 0.7%
* The euro rose 0.9% to $1.0750
* The British pound rose 0.7% to $1.2575
* The Japanese yen rose 0.2% to 129.86 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 2.91%
* Germany’s 10-year yield advanced five basis points to 1.24%
Commodities
* West Texas Intermediate crude rose 2% to $117.61 a barrel
* Gold futures rose 1.3% to $1,873.10 an ounce
–With assistance from John Viljoen, Allegra Catelli, Farah Elbahrawy and Andreea Papuc.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Whenever you find yourself on the side of the majority, it is time to pause and reflect. –Mark Twain, 1835-1910.

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