June 24, 2024, Newsletter

Dear Friends,

Tangents: Happy Monday.  St. Jean Baptiste Day, Quebec.

On June 24, 1997, the Air Force released a report on the so-called “Roswell Incident,” suggesting the alien bodies witnesses reported seeing in 1947 were actually life-sized dummies.  Go to article >>

2022: US Supreme court overturns Roe v. Wade.
1497: Discovery of Newfoundland.
Jack Dempsey, boxer, b.1895.

Taylor Swift stuns London crowd by bringing Travis Kelce on stage during Eras Tour concert
The pop star surprised her fans with a special skit featuring her Super Bowl champ boyfriend. See the moment here.
Barcelona ending apartment rentals by foreign tourists
The Spanish city announced it will bar apartment rentals to tourists by 2028.

Human ancestor ‘Lucy’ was hairless, new research suggests. Here’s why that matters.
Lucy is popularly depicted as being hairy, but new evidence suggests she wasn’t. The discovery prompts new questions about the history of nudity. Read More.

1,600-year-old coin discovered in Channel Islands features Roman emperor killed by invading Goths
Archaeologists on the Channel Islands off the coast of France have found two coins from the Roman era. Read More.

James Webb telescope spots a dozen newborn stars spewing gas in the same direction — and nobody is sure why
The James Webb telescope has spotted a peculiar group of baby stars firing enormous jets into space at nearly the exact same angle. The discovery could hold new insights into how stars are born. Read More.

AI models could devour all of the internet’s written knowledge by 2026
A new estimate suggests that AI could use up all of the internet’s text data within the next few years. The next recourse could be private information, a new study warns. Read More.

Have giant humans ever existed?
Some humans have always stood head and shoulders above their peers, but there’s nothing mythological about these real-life human giants. Read More.

PHOTOS OF THE DAY

Wehrheim, Germany
A stork leaves its nest on the outskirts of Wehrheim near Frankfurt
Photograph: Michael Probst/AP

New York, US
A lightning bolt strikes One World Trade Center during a thunderstorm, seen from Jersey City
Photograph: Gary Hershorn/Getty Images

Yichang, China
Tourists watch the sunrise from a viewing platform on the Three Gorges Dam
Photograph: Costfoto/NurPhoto/Rex/Shutterstock
Market Closes for June 24^th, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1964: AT&T’s Picturephone was tested by the president’s wife. Lady Bird Johnson spoke from Washington, D.C. to appear on a screen in New York City’s Grand Central station. A three-minute call between the two cities cost $16.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 1.4% at 21,848.59 in Toronto.
The move was the biggest gain since May 6 and follows the previous session’s decrease of 0.1%.
Today, financials stocks led the market higher, as 10 of 11 sectors gained; 175 of 226 shares rose, while 50 fell.
Royal Bank of Canada contributed the most to the index gain, increasing 2.2%.
Africa Oil Corp. had the largest increase, rising 10.3%.
Insights
* In the past year, the index had a similar or greater gain seven times. The next day, it advanced after all seven occasions
* This quarter, the index fell 1.4%
* This month, the index fell 1.9%
* The index advanced 13% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is 3.1% below its 52-week high on May 21, 2024 and 16.9% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 1.2% in the past 5 days and fell 2.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.5 on a trailing basis and 14.8 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$3.42t
* 30-day price volatility rose to 11.05% compared with 10.15% in the previous session and the average of 10.36% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 111.0173| 1.7| 24/3
Energy | 84.5916| 2.2| 36/5
Materials | 28.2219| 1.1| 33/19
Industrials | 22.4664| 0.7| 19/8
Utilities | 19.3744| 2.4| 13/2
Consumer Staples | 11.2774| 1.2| 8/3
Consumer Discretionary | 9.4571| 1.2| 12/1
Real Estate | 9.0826| 2.1| 19/1
Communication Services | 6.9227| 1.0| 5/0
Health Care | 0.5521| 0.9| 3/1
Information Technology | -9.2549| -0.5| 3/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | 30.3600| 2.2| 21.8| 8.3
Canadian Natural Resources | 22.9300| 3.2| -50.7| 12.3
TD Bank | 17.9600| 2.0| 64.6| -11.9
Celestica | -3.1300| -4.9| 67.1| 87.7
Cameco | -5.5890| -2.6| 1.7| 20.6
Shopify | -10.4800| -1.4| 40.0| -14.9
US
By Rita Nazareth
(Bloomberg) — Stocks lost traction as an about $400 billion plunge in Nvidia Corp. raised speculation that the rally in the industry that has powered the bull market was due for a breather.
While various sectors outside the technology world advanced on Monday, Nvidia extended a three-day rout to 13% — crossing the technical threshold of a correction.
The chipmaker at the heart of the artificial-intelligence revolution has become the most-expensive stock in the S&P 500.
It remains up almost 140% this year, making it the second-best performer in the benchmark gauge, behind Super Micro Computer Inc., another favorite AI play.
Following a tech-led rally, Deutsche Bank’s Binky Chadha said US equities are set to pause.
There’s a lot of good news baked into markets, and if that optimism proves unjustified, there could be downside risks, Lori Calvasina at RBC Capital Markets noted.
To John Stoltzfus at Oppenheimer, while the bull market appears sustainable, some profit-taking should be expected.
“We remain concerned about a near-term unwind of many year-to-date leaders,” said Jonathan Krinsky at BTIG. “If the S&P 500 is going to avoid a bigger pullback into July, bulls need to see continued rotation below the surface.”
The S&P 500 fell below 5,450.
Energy and financial shares rose as tech retreated.
The Nasdaq 100 lost 1.2% after coming close to the 20,000 mark last week.
Nvidia sank 6.7%.
A gauge of chipmakers dropped 3%, with 29 of its 30 stocks down.
The Dow Jones Industrial Average outperformed.
Treasury 10-year yields fell two basis points to 4.24%.
Bitcoin slumped below $60,000.
Losses are piling up in the crypto market after its second-worst weekly decline of 2024, a reflection of cooling demand for Bitcoin exchange-traded funds and uncertainty over monetary policy.
More than a quarter of respondents in the latest MLIV Pulse survey plan to cut their stock holdings over the next month.
That compares to 19% who expect to add exposure, and the gap between the potential sellers and buyers in the largest since October.
The S&P 500 is expected to close the year at 5,606, according to a median of 586 responses.
That’s about 2.5% higher than current levels, indicating that the rally has little left after an almost 15% gain so far in 2024.
Additionally, almost half of survey participants expect a correction to begin later this year.
To Matt Maley at Miller Tabak, if the weakness in a few big-cap tech names spills over into the rest of the group, it’s likely going to create some problems for the broad market.
At least over the near-term.
“A decline in the tech sector is certainly possible, even if the sector is going to do well during the summer months overall,” Maley noted. “Even if you agree with the most-bullish scenario for the AI phenomenon for the second half of 2024, no group moves in a straight line.”
The strategist noted that the upcoming results from Micron Technology Inc. on Wednesday could be key on that front.
“The stock market is not in a bubble, and while mega-cap growth stock valuations are stretched, stock prices have not decoupled from fundamentals as they did during the tech bubble of 2000,” said Emily Bowersock Hill at Bowersock Capital Partners. “Right now, the market is rewarding companies for delivering strong earnings, and punishing those that do not deliver.”
Just a handful of “higher quality” mega-caps driving the performance of US stocks shows the market is focusing more on softening economic growth, than on inflation and rates, according to Morgan Stanley strategists led by Mike Wilson.
Stick to high quality large caps and defensives, they added.
The team also highlighted that a “narrow breadth” is not necessarily a bad thing going by historic performance.
Until growth slows in “a more meaningful way,” the team expects narrow market performance to persist.

Corporate Highlights:
* Trump Media & Technology Group Corp. surged after an announcement late Friday that the firm expected to receive more than $69.4 million in proceeds from the cash exercise of warrants last week.
* Oracle Corp. warned investors that a new law potential banning TikTok in the US threatens to hurt its financial results.
* Apple Inc. risks billions of euros of new fines over its App Store rules as European Union antitrust regulators escalated a growing conflict over rules that strike at the heart of the iPhone maker’s business model.
* Airbus SE cut its earnings and aircraft-delivery goals for the year as persistent supply-chain issues continue to deprive the European plane maker of vital components, dealing a setback to the company at a time when demand for its jets is at a record.
* DuPont de Nemours Inc.’s water treatment business, which the US chemicals group is planning to spin out, is drawing separate takeover interest from potential industry buyers, people with knowledge of the matter said.
* Novo Nordisk A/S plans to invest $4.1 billion in another US factory, plowing more money into its biggest market amid rising discontent there over the cost of its obesity and diabetes drugs.
* Alnylam Pharmaceuticals Inc. soared after its drug succeeded in treating a progressive and deadly form of heart disease, potentially opening up a new avenue for the company’s top-selling product.

Key events this week:
* US Conference Board consumer confidence, Tuesday
* Fed’s Lisa Cook, Michelle Bowman speak, Tuesday
* US new home sales, Wednesday
* China industrial profits, Thursday
* Eurozone economic confidence, consumer confidence, Thursday
* US durable goods, initial jobless claims, GDP, Thursday
* Nike releases earnings, Thursday
* Japan Tokyo CPI, unemployment, industrial production, Friday
* US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday
* Fed’s Thomas Barkin speak, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.1%
* The Dow Jones Industrial Average rose 0.7%
* The MSCI World Index was little changed
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.4% to $1.0736
* The British pound rose 0.3% to $1.2687
* The Japanese yen rose 0.1% to 159.64 per dollar
Cryptocurrencies
* Bitcoin fell 6.7% to $59,418.56
* Ether fell 3.8% to $3,303.63
Bonds
* The yield on 10-year Treasuries declined two basis points to 4.24%
* Germany’s 10-year yield was little changed at 2.42%
* Britain’s 10-year yield was little changed at 4.08%
Commodities
* West Texas Intermediate crude rose 1.2% to $81.68 a barrel
* Spot gold rose 0.5% to $2,332.46 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Kasia Klimasinska, Ryan Vlastelica, Jeran Wittenstein, Carly Wanna, Sujata Rao, Catherine Bosley and Matthew Burgess.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Everybody wants to be somebody; nobody wants to grow. –Johann von Goethe, 1749-1832.

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