June 29, 2020 Newsletter

Dear Friends,

Tangents:

A mysterious rhythm is coming from another galaxy. -Bloomberg.

Meet the deepest hole in the world. -Scott Kominers, Bloomberg.

Nothing beats the thrill of a bookstore. -Bloomberg.

Lives Lived: The movie “The Graduate” helped define the 1960s. The story of the man who wrote the novel, Charles Webb, is even more fascinating. He has died at 81. -The NY Times.

On June 29, 1995, the shuttle Atlantis and the Russian space station Mir docked, forming the largest man-made satellite ever to orbit the Earth. Go to article »

June 29, 1613: Shakespeare’s Globe Theatre in London, England, burns down during a performance of Henry VIII.

William James Mayo, co-founder Mayo Clinic, b. 1861.
Antoine de Saint-Exupery, writer, b.1900.

PHOTOS OF THE DAY

Workers sort through thousands of bright red lychee fruit before they are taken to market. Luc Ngan district in Bac Giang province, Vietnam.
CREDIT: NGUYEN HUU THONG/SOLENT NEWS

A Balloonists from Balloon team Bila Hlina prepares for take off in Sobotka in the Czech Paradise. A hot air balloon drifts past a landscape as it prepares to land at sunrise.
CREDIT: SLAVEK RUTA/ZUMA WIRE

A family of moorhens feeding on fish are perfectly reflected in the water at a pond in Bourne, Lincolnshire.
CREDIT: ALI ABDULRAHEEM/SOLENT NEWS & PHOTO AGENCY

Market Closes for June 29^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1979, as the American auto industry sputtered and the technology industry was taking off, the editors of The Wall Street Journal booted Chrysler from the Dow Jones Industrial Average and replaced it with IBM. And with healthcare growing faster than the food industry, Merck replaced Esmark
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equities rallied on Monday as better-than-estimated economic data offset concern over an increase in coronavirus cases. The S&P/TSX Composite Index rose 1.3% in Toronto, gaining along with U.S. shares after U.S. pending home sales posted a record gain, exceeding all forecasts. Meanwhile, consumer confidence in Canada continued its upward climb for a ninth- straight week amid phased reopenings across the country. All 11 sectors within the index were positive, led by consumer discretionary and energy. Meanwhile, Cirque du Soleil Entertainment Group filed for protection from creditors after the coronavirus pandemic forced it to close shows around the world, bringing one of the best- known brands in live performance to its knees. Canada’s main privacy watchdog has launched an investigation into the Tim Hortons mobile app after a media report raised concerns that the Canadian coffee giant has been allegedly gathering detailed location data about its customers.
Commodities
* Western Canada Select crude oil traded at a $9.30 discount to West Texas Intermediate
* Spot gold was flat at $1,771.20 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.2% to C$1.3669 per U.S. dollar
* The 10-year government bond yield was little changed at 0.512%
By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose 1.3 percent at 15,389.72 in Toronto. The move was the biggest since rising 1.4 percent on June 12 and follows the previous session’s decrease of 1.7 percent. Shopify Inc. contributed the most to the index gain, increasing 1.7 percent. Ballard Power Systems Inc. had the largest increase, rising 13.4 percent. Today, 172 of 222 shares rose, while 48 fell; all sectors were higher, led by energy stocks.
Insights
* This quarter, the index rose 15 percent, heading for the biggest advance in at least 10 years
* This month, the index rose 1.3 percent
* The index declined 6.1 percent in the past 52 weeks. The MSCI AC Americas Index gained 2.9 percent in the same period
* The S&P/TSX Composite is 14.4 percent below its 52-week high on Feb. 20, 2020 and 37.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 0.8 percent in the past 5 days and rose 1.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.3 on a trailing basis and 24.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.31t
* 30-day price volatility fell to 19.86 percent compared with 20.08 percent in the previous session and the average of 20.45 percent over the past month
================================================================
|Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 43.8607| 2.3| 24/0
Financials | 42.0387| 1.0| 16/8
Materials | 22.0701| 1.0| 39/11
Information Technology | 18.9627| 1.2| 6/4
Industrials | 18.1823| 1.0| 19/9
Consumer Discretionary | 15.7468| 3.1| 13/0
Utilities | 14.5763| 1.9| 16/0
Communication Services | 13.1459| 1.6| 6/2
Consumer Staples | 9.9587| 1.5| 9/2
Health Care | 1.2198| 0.7| 5/4
Real Estate | 0.9745| 0.2| 19/8
US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — U.S. stocks climbed after better-than- estimated economic data overshadowed concern over an increase in coronavirus cases. The dollar advanced and Treasuries were little changed. The S&P 500 erased its June decline after a report showed U.S. pending home sales posted a record gain, exceeding all forecasts. Boeing Co. led gains the Dow Jones Industrial Average after a 737 Max lifted off from a Seattle airfield with a U.S. Federal Aviation Administration pilot on board. The tech-heavy Nasdaq extended gains as Facebook Inc. wiped out its losses. The improvement in economic data partly resulted from some states beginning to ease restrictions from lockdowns. Federal Reserve Chairman Jerome Powell stressed the importance of keeping the coronavirus contagion contained as the economy bounces back. Florida reported a jump in its double-digit infection rate, New Jersey halted plans for indoor dining and New York City said it’s considering it. As deaths from the virus surpassed 500,000 worldwide and confirmed cases exceeded 10 million, the World Health Organization warned the worst is yet to come.
“There’s a lot of cash on the sidelines,” Tom Lee, co- founder and head of research at Fundstrat Global Advisors, told Bloomberg TV. “It’s not clear what trajectory coronavirus is heading. But I also think because we’re into quarter-end, there’s been some re-balancing. So I’m kind of in the camp that any weakness is short-lived. I would think July is going to be a strong month for stocks.” U.S. companies are providing reason for hope that an earnings recession may be less severe than analysts expect. The
signal comes from a profit-outlook index, compiled by Bloomberg and based on corporate revisions to forecasts. For almost all of June, the index’s 20-day moving average has exceeded 50, showing more companies raised projections than  lowered them. The average peaked June 17 at 63.4, the highest reading in the index’s 20-year history. Analysts estimate that second-quarter earnings for the S&P 500 will plunge 44% after a first-quarter decline of 18%.
Here are some key events coming up:
* Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testify before the House Financial Services Committee on Tuesday.
* The monthly U.S. jobs report will be released on Thursday.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index rose 1.5% as of 4 p.m. New York time.
* The Dow Jones Industrial Average jumped 2.3%.
* The Nasdaq Composite Index rose 1.2%.
* The Stoxx Europe 600 Index increased 0.4%.
* The MSCI Asia Pacific Index decreased 1.4%.
Currencies
* The Bloomberg Dollar Spot Index gained 0.2%.
* The euro increased 0.2% to $1.1238.
* The Japanese yen depreciated 0.3% to 107.59 per dollar.
Bonds
* The yield on 10-year Treasuries dipped less than one basis point to 0.64%.
* Germany’s 10-year yield rose one basis point to -0.47%.
* Britain’s 10-year yield declined one basis point to 0.163%.
Commodities
* The Bloomberg Commodity Index jumped 1.6%.
* West Texas Intermediate crude rose 3% to $39.63 a barrel.
* Gold increased 0.1% to $1,782.50 an ounce.

–With assistance from Max Nisen, Adam Haigh, Todd White, Lynn
Thomasson, David Wilson and Sophie Caronello.

Have  a great night.

Be magnificent!
As ever,

Carolann

Never doubt that a small group of thoughtful, committed citizens can change the world.
Indeed, it is the only thing that ever has.
                                                                               -Margaret Mead, 1901-1978

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