May 10, 2022 Newsletter

Dear Friends,

Tangents:
On May 10, 1869, a golden spike was driven at Promontory, Utah, marking the completion of the first transcontinental railroad in the United States.  Go to article »
1994: Nelson Mandela sworn in as South Africa’s first black president.
Bono, singer, b. 1960.
Fred Astaire, dancer, b. 1899.

Warhol portrait fetches a record $195 million.  Going, going, gone! One of Andy Warhol’s most recognizable works just became the most expensive 20th-century artwork ever sold at auction.

Tony Awards nominations announced. Bravo! These Broadway productions received the most nods this year.

Top 10 hotels in the world and the US for 2022, according to TripAdvisor – the world’s best hotels. 

Tips from the ultimate traveller.

Archaeologists have discovered the oldest structure ever found in the United Arab Emirates (UAE) — the remains of a building that may be 8,500 years old.

The structure, which dates to the Neolithic period, was found by archaeologists on the island of Ghagha off Abu Dhabi.  Full Story: Live Science (5/9) 

Ads are coming for your Netflix account.
PHOTOS OF THE DAY

A Christie’s auctioneer claps after ending the auction of Shot Sage Blue Marilyn by Andy Warhol, which sold for $170m (£140m) during a sale of works from the collection of Thomas and Doris Ammann
CREDIT: Sarah Yenesel/EPA

Prince Charles sits on the throne, the imperial state crown at his side, for the state opening of parliament
CREDIT: Dan Kitwood/AFP/Getty Images

Four-month-old spectacled bear cub twins play in their enclosure at Noah’s Ark zoo farm in Clevedon, where the Andean bears, the only bear species native to South America, are slowly venturing from their cubbing den to spend more time outdoors with their mother
CREDIT: Ben Birchall/PA

Market Closes for May 10^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The stock market is a device for transferring money from the impatient to the patient. -Warren Buffet, b. 1930.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the fourth day, dropping 0.5%, or 109.63 to 19,890.06 in Toronto.
The index dropped to the lowest closing level since July 19.
Today, financials stocks led the market lower, as 10 of 11 sectors lost; 159 of 239 shares fell, while 77 rose.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.1%.
Bausch Health Cos. had the largest drop, falling 27.1%.
Insights
* The index advanced 2.7% in the past 52 weeks. The MSCI AC Americas Index lost 6.2% in the same period
* The S&P/TSX Composite is 10.5% below its 52-week high on April 5, 2022 and 4.3% above its low on May 13, 2021
* The S&P/TSX Composite is down 4.9% in the past 5 days and fell 9.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.8 on a trailing basis and 12.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.2t
* 30-day price volatility fell to 17.88% compared with 18.05% in the previous session and the average of 12.94% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -32.3448| -0.5| 5/22
* Energy | -13.2526| -0.4| 14/20
* Materials | -13.0624| -0.5| 13/39
* Information Technology | -11.6612| -1.1| 6/10
* Industrials | -10.8274| -0.5| 9/21
* Health Care | -9.5281| -9.3| 2/6
* Communication Services | -7.0116| -0.7| 2/5
* Real Estate | -4.6411| -0.9| 9/14
* Consumer Staples | -4.2236| -0.5| 2/8
* Utilities | -4.2211| -0.4| 6/9
* Consumer Discretionary | 1.1400| 0.2| 9/5
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Royal Bank of Canada | -13.2900| -1.1| -9.1| -5.9
* Bausch Health | -8.9980| -27.1| 153.1| -65.0
* Canadian Pacific | -8.6280| -1.5| 85.5| -2.6
* Ritchie Bros | 6.1630| 12.2| 231.7| -3.9
* Nutrien | 7.4280| 1.6| 17.8| 29.2
* Brookfield Asset Management | 11.3400| 1.9| 34.2| -19.6

US
By Rita Nazareth
(Bloomberg) — Stocks closed higher in another session marked by several twists and turns, with investors trying to make sense of comments from a multitude of Federal Reserve speakers ahead of key US inflation data on Wednesday.
The S&P 500 bounced back after a selloff that erased $9 trillion from the US equity market this year, while the tech- heavy Nasdaq 100 outperformed following the biggest three-day wipeout in two decades.
Treasury 10-year yields fell.
Oil settled below $100 a barrel, shedding almost 10% in two days.
Investors awaited the consumer-price index report, which is expected to show that while pressures were still elevated, inflation likely moderated in April.
“Positioning in the market is obviously very light right now and liquidity remains very challenged, so it won’t take much to move things a lot,” said Scott Ladner, chief investment officer at Horizon Investments. “I’d probably attribute this move mostly to position squaring ahead of CPI tomorrow. People don’t want to be short ahead of what is widely seen as a likely soft CPI print and a resulting squeeze higher.”
Fed officials reinforced Chair Jerome Powell’s message that half-point hikes are on the table in June and July, but a larger move could be warranted later in the year.
Cleveland Fed President Loretta Mester told Bloomberg Television that “we don’t rule out 75 forever.”
Her New York peer John Williams expects the central bank “will move expeditiously in bringing the federal funds rate back to more normal levels this year.”
Fed Governor Christopher Waller said a strong US economy can take higher rates.
More comments:
* “A market bounce after a big selloff is not uncommon,” said Lindsey Bell, chief markets and money strategist at Ally. “But it doesn’t mean we are out of the woods. And it doesn’t necessarily mean we’ve reached a bottom in the market. Investors are looking for some level of clarity on the path forward.”
* “Stocks will likely find a bottom when the Federal Reserve signals a pause in its tightening campaign, inflation shows signs of moderation or stock multiples become very attractive,” wrote Richard Saperstein, chief investment officer at Treasury Partners.
* “Despite our expectation of falling inflation and sustained growth, we believe investors should brace for further equity volatility amid significant moves in key economic variables and bond markets,” wrote Mark Haefele, chief investment officer at UBS Global Wealth Management.
* “Equities are starting to look attractive for medium-to-longer term buyers,” Peter Oppenheimer, chief global equity strategist at Goldman Sachs Group Inc., told Bloomberg Television on Tuesday. While the downside risks still lurk, “all of that really is absorbed into the market already.”

In corporate news, Peloton Interactive Inc. reported a deeper loss than analysts predicted and cut its revenue guidance, marking the latest setbacks for the once pandemic darling.
Prologis Inc., the giant warehouse owner, unveiled a roughly $24 billion all-stock offer to acquire Duke Realty Corp., taking its bid public after months of private pushback from the Indianapolis-based real estate investment trust. 
Here are key events to watch this week:
* US CPI, Wednesday
* EIA crude oil inventory report, Wednesday
* San Francisco Fed President Mary Daly speaks, Thursday
* US PPI, initial jobless claims, Thursday
* University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.3%
* The Dow Jones Industrial Average fell 0.3%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.3% to $1.0534
* The British pound fell 0.1% to $1.2318
* The Japanese yen was little changed at 130.37 per dollar
Bonds
* The yield on 10-year Treasuries declined four basis points to  2.99%
* Germany’s 10-year yield declined nine basis points to 1.00%
* Britain’s 10-year yield declined 11 basis points to 1.85%
Commodities
* West Texas Intermediate crude fell 3.3% to $99.65 a barrel
* Gold futures fell 1.2% to $1,837.10 an ounce
–With assistance from Sunil Jagtiani, John Viljoen, Srinivasan Sivabalan, Vildana Hajric, Isabelle Lee, Lu Wang and Peyton Forte.

Have a lovely evening.

Be magnificent!

As ever,

Carolann

Nowhere can man find a quieter or more untroubled retreat than in his own soul. –Marcus Aurelius, 121 AD-180 AD.

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