June 7, 2023,Newsletter

Dear Friends,

Tangents:

Carolann is away from the office today to the Bloomberg Investment Conference in NYC for the rest of the week, I will be writing the newsletter on her behalf.

On this day, A federal judge ordered the breakup of Microsoft Corp. Go to article   

Webb telescope captures galaxy 20 million light-years away. These new images of a faraway galaxy rife with star formation are getting major attention from astronomers and space enthusiasts.

2,300-year-old Buddhist elephant statue from India is one of the oldest known. Archaeologists in eastern India have unearthed an elephant statue thought to date to the third century B.C., when the region was mainly Buddhist. Read More

AI predicts 5-year breast cancer risk better than standard tools — but we aren’t sure how it works. Artificial intelligence models can use breast imaging data to pinpoint those at highest risk of getting breast cancer in the next five years, better than a standard approach. Read More

PHOTOS OF THE DAY

Chümoukedima, India
Sümi women line up to perform a traditional rice pounding folk song during a silver jubilee celebration in Thilixü village
Photograph: Caisii Mao/Shutterstock

Lhokseumawe, Indonesia
Fishers pull a net at sunrise on the beach at Hagu village
Photograph: Azwar Ipank/AFP/Getty Images

Treasure island
‘A flamingo tongue snail in Cayman Brac, Cayman Islands.’
Photograph: Ian Kay/Guardian Community
Market Closes for June 7^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 2000, a U.S. District Court judge finalized a ruling that Microsoft was a monopoly under the Sherman Antitrust Act and ordered the company be split in two. Microsoft successfully appealed against the ordered breakup.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.4% at 19,983.69 in Toronto. The move follows the previous session’s increase of 0.6%.
Today, information technology stocks led the market lower, as 6 of 11 sectors lost; 133 of 232 shares fell, while 99 rose.
Shopify Inc. contributed the most to the index decline, decreasing 6.7%. North West Co. had the largest drop, falling 10.8%.
Insights
* This quarter, the index fell 0.6%
* The index declined 4.5% in the past 52 weeks. The MSCI AC Americas Index gained 1.7% in the same period
* The S&P/TSX Composite is 4.5% below its 52-week high on June 7, 2022 and 11.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 2.1% in the past 5 days and fell 2.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.1 on a trailing basis and 13.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.19t
* 30-day price volatility little changed to 12.57% compared with 12.57% in the previous session and the average of 10.47% over the past month
================================================================
| Index Points | |Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | -68.6115| -4.3| 2/10
Materials | -22.4282| -0.9| 9/41
Consumer Staples | -12.7553| -1.5| 0/11
Financials | -9.5355| -0.2| 10/19
Consumer Discretionary | -4.3158| -0.6| 9/6
Health Care | -0.6882| -1.0| 1/5
Utilities | 0.9444| 0.1| 10/6
Real Estate | 0.9570| 0.2| 11/10
Communication Services | 1.6193| 0.2| 4/1
Industrials | 15.9358| 0.6| 10/17
Energy | 26.9777| 0.8| 33/7
================================================================
| | |Volume VS| YTD |Index Points| | 20D AVG | Change Top Contributors | Move |% Change | (%) | (%)
================================================================
Shopify | -47.1700| -6.7| 56.8| 69.5
Constellation Software | -9.6370| -2.5| -9.1| 31.3
Agnico Eagle Mines | -6.3910| -2.7| 17.7| -3.6
Canadian National | 7.5070| 1.2| -16.8| -3.0
Nutrien | 9.5020| 3.4| 14.0| -19.7
Canadian Pacific Kansas | 20.0300| 3.0| 28.1| 4.9
US
By Alexandra Semenova
(Bloomberg) — US equities declined Wednesday as investors weighed the prospect of the Federal Reserve keeping interest rates elevated for longer even if officials pause their hikes next week.
The S&P 500 Index sank 0.4% in New York after the benchmark US stock gauge earlier in the session again tested the key bull- market threshold, 20% above its October closing low. The Nasdaq 100 tumbled 1.8%, with technology stocks extending this week’s pullback.
The Bank of Canada on Wednesday lifted its overnight lending rate to 4.75% — the highest since 2001 — restarting its tightening campaign after signaling a conditional pause in January.
“The BOC is signaling that more rate hikes could come and that has everyone rethinking that the Fed will be done after the July hike,” OANDA senior market analyst Edward Moya said in a note.
US equities have advanced this year as investors brace for an end to the Fed’s most aggressive rate-hiking blitz in decades. Several policymakers signaled a “skip” on increases at the June policy meeting before the central bank entered its blackout period this week. However, still-high inflation has raised concerns rates could remain higher for longer or rise again down the line.
“Expect FOMC messaging next Wednesday to maintain a vigilant tone,” Jefferies chief market strategist, David Zervos, said in an email Wednesday. “There will be cautious optimism on inflation. There will also, however, be what I would call a “victory skip” with the Fed pausing.
“The bias will still be to tighten down the road if the disinflation process becomes sticky, but by no means is a further tightening assured,” Zervos said. “And the skip will no doubt be a breath of fresh air for financial markets after enduring the 500 basis points of tough love needed to anchor long-term inflation expectations.”
Even as mega-cap tech names slumped Wednesday, shares of Tesla Inc. rose 1.5%, notching a nine-session winning streak for the electric-vehicle giant, the longest since 2021.
The latest positive catalyst was news on Monday that the carmaker’s Model 3 sedans were eligible for the full US tax credit under the Treasury Department’s new battery-sourcing criteria.
Earlier in the day, data from China reflected a bigger- than-expected drop in exports, stoking concerns about global demand. An OECD report also warned about a weak recovery for the global economy.

SECTOR IN FOCUS
* Cryptocurrency stocks, after Cathie Wood’s funds boosted their holdings of Coinbase Global Inc. after the Securities and Exchange Commission’s lawsuit against the firm.
* EV stocks, after Tesla’s Model 3 sedans became eligible for the full US tax credit under new criteria for battery-sourcing set by the US Treasury Department.

–With assistance from Julien Ponthus.

Have a lovely evening.

Be magnificent!
As ever,

Isabel

Attitude is the ‘little’ thing that makes a big difference. – Winston Churchill, 1874-1965

Assistant to Carolann Steinhoff, Registered Representative

Queensbury Securities Inc.,
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