May 11, 2020 Newsletter

Dear Friends,

Tangents:
Irving Berlin, b.1888
Martha Graham, b. 1894
Salvador Dali, b. 1904

Jerry Stiller’s best moments on “Seinfeld.” –Bloomberg.

The power of Dance: Watch these 32 ballet dancers from around the world dance to the same music for Covid relief. (Click here to view) –CNN.

On May 11, 1973, charges against Daniel Ellsberg for his role in the Pentagon Papers case were dismissed by Judge William M. Byrne, who cited government misconduct. Go to article »

PHOTOS OF THE DAY

Cygnets return to their nest after a swim on a pond in south Dublin, Ireland.
CREDIT: BRIAN LAWLESS/PA

A hummingbird is seen in the Guapiles area, east of San Joes, Costa Rica.
CREDIT: JEFFREY ARGUEDAS/EPA

Street artist Steven Garmendia dressed as Spiderman is seen performing on an avenue in Managua, Nicaragua.
CREDIT: JORGE TORRES/EPA

Market Closes for May 11^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1861, as a sign of patriotic fellowship, the New York Stock Exchange banned all trading in Confederate stocks and bonds. However, members were still free to short-sell any Union securities they chose.
Canada
By Michael Bellusci
(Bloomberg) — Canadian shares moved higher for the sixth-straight session Monday as tech shares rallied, while investors weighed reopening of the economy. The S&P/TSX Composite Index gained 0.9%. Shopify Inc. gained 6.2%, leading tech higher. Meanwhile, Premium Brands Holdings Corp. rose 13% after first-quarter earnings results. Oil declined as doubts circulated over Saudi Arabia’s ability to implement additional pledged production cuts. Canada unveiled a loan program for large firms that have been hit by Covid-19 and can’t get financing by conventional means. Gold miners are forging ahead with mergers and acquisitions, taking advantage of an investor flight to the haven during the coronavirus crisis. Also, Ontario is trending in the right direction in its battle against the coronavirus epidemic, reporting the lowest number of new cases in six weeks, the province’s premier said.
Commodities
* Western Canada Select crude oil traded at a $3.05 discount to West Texas Intermediate.
* Spot gold fell 0.3% to about $1,697.76 an ounce.
FX/Bonds
* The Canadian dollar fell 0.6% to C$1.4016 per U.S. dollar.
* The 10-year government bond yield edged higher to 0.587%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the sixth day, climbing 0.9 percent, or 136.66 to 15,103.22 in Toronto. The move was the biggest since rising 2.9 percent on April 29. Shopify Inc. contributed the most to the index gain, increasing 6.2 percent. Premium Brands Holdings Corp. had the largest increase, rising 12.6 percent. Today, 103 of 229 shares rose, while 123 fell; 8 of 11 sectors were higher, led by information technology stocks.
Insights
* The index declined 7.3 percent in the past 52 weeks. The MSCI AC Americas Index gained 0.4 percent in the same period
* The S&P/TSX Composite is 16 percent below its 52-week high on Feb. 20, 2020 and 35.2 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 2.4 percent in the past 5 days and rose 6.6 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.1 on a trailing basis and 22.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.27t
* 30-day price volatility fell to 31.96 percent compared with 32.62 percent in the previous session and the average of 64.79 percent over the past month
=====================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
=====================================================
Information Technology | 46.2749| 3.5| 4/6
Financials | 44.8306| 1.1| 19/7
Energy | 37.5812| 1.9| 10/19
Consumer Staples | 19.3305| 3.0| 10/1
Industrials | 17.5794| 1.0| 19/12
Utilities | 17.5224| 2.2| 15/0
Communication Services | 9.0260| 1.1| 5/3
Consumer Discretionary | 6.1224| 1.2| 6/8
Health Care | -1.1816| -0.8| 3/7
Real Estate | -5.4309| -1.2| 5/20
Materials | -54.9998| -2.5| 7/40
US
By Rita Nazareth and Sarah Ponczek
(Bloomberg) — U.S. stocks were mixed as traders assessed the latest moves around the globe to relax restrictions amid the coronavirus pandemic. The S&P 500 was little changed, the Dow Jones Industrial Average fell while the Nasdaq 100 rose for a sixth day – its longest winning streak this year. The dollar climbed, while Treasuries dropped. Oil wiped out gains driven by Saudi Arabia’s plan to deepen output cuts. The S&P 500 briefly rallied after New York Governor Andrew Cuomo said businesses including construction, curbside retail, drive-in movies and some recreational activities will reopen this week on a regional basis.
The state reported 161 additional deaths, the lowest since late March. Earlier Monday, New York City Mayor Bill de Blasio said the lockdown is likely to continue into June. “As investors are emboldened by some states loosening the reins, stocks could continue their march higher, especially the tech sector,” said Paul Nolte, a portfolio manager at Kingsview Investment Management in Chicago. “How stocks act over the coming weeks will likely determine whether the summer smolders or is just a hot mess.”More than 33 million Americans have lost their jobs in the seven weeks since wide swaths of the U.S. economy shuttered to stem the outbreak. President Donald Trump is trying to convince Americans it’s safe to return to work, with the nation having more than 1.3 million cases of Covid-19. With infections slowing in some European countries, more governments moved to tentatively relax limits. Here are some key events coming up:
* Earnings continue to roll in from companies including Tencent, Allianz, and Petrobras.
* Regional Federal Reserve presidents James Bullard, Loretta Mester and Patrick Harker are due to speak at events on Tuesday.
* OPEC gives its monthly oil market report on Wednesday.
* U.S. weekly jobless claims data is due Thursday.
* China on Friday releases industrial production and retail sales data for April.

These are the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time.
* The Dow Jones Industrial Average declined 0.4%.
* The Nasdaq 100 Index jumped 0.9%.
* The Stoxx Europe 600 Index fell 0.4%.
* The MSCI Asia Pacific Index climbed 0.6%.
Currencies
* The Bloomberg Dollar Spot Index gained 0.5%.
* The euro dipped 0.2% to $1.0817.
* The Japanese yen depreciated 0.9% to 107.66 per dollar.
Bonds
* The yield on 10-year Treasuries gained three basis points to 0.71%.
* Germany’s 10-year yield increased three basis points to -0.51%.
* Britain’s 10-year yield gained three basis points to 0.269%.
Commodities
* The Bloomberg Commodity Index decreased 0.9%.
* West Texas Intermediate crude was little changed at $24.73 a barrel.
* Gold declined 0.8% to $1,699.60 an ounce.
–With assistance from Cormac Mullen, Joanna Ossinger, Adam
Haigh, Todd White, Yakob Peterseil, Sarah Ponczek, Vildana Hajric, David Wilson, Luke Kawa and Claire Ballentine.

Have a great night.

Be magnificent!
As ever,

Carolann

Dance is the hidden language of the soul.
               -Martha Graham, 1884-1991

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