May 16, 2022 Newsletter

Dear Friends,

Tangents:
Carolann is away from the office today, I will be writing the newsletter on her behalf.  

PHOTOS OF THE DAY

A man crosses a bridge during a dust storm
CREDIT: Sabah Arar/AFP/Getty Images

A visitor views an exhibition of images from the Intesa Sanpaolo Publifoto Archive at the Gallerie d’Italia
CREDIT: Marco Bertorello/AFP/Getty Images

The Wat Phra Dhammakaya temple is decorated with 210,000 LED lights in a ceremony to mark the birth, enlightenment and death of Buddha. People from around the world joined the virtual ceremony via Zoom
CREDIT: Pacific Press/Alamy Live News

Market Closes for May 16^th, 2022

International Markets

Bonds

Currencies

Commodities

Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second
day, climbing 0.5%, or 106.6 to 20,206.41 in Toronto. The index
advanced to the highest closing level since May 6.
Canadian Natural Resources Ltd. contributed the most to the
index gain, increasing 2.9%. Dye & Durham Ltd. had the largest
increase, rising 17.4%.
Today, 161 of 239 shares rose, while 75 fell; 9 of 11
sectors were higher, led by energy stocks.
Terminal users can read more in our markets live blog.
Insights
* The index advanced 4.3% in the past 52 weeks. The MSCI AC Americas Index lost 5.5% in the same period
* The S&P/TSX Composite is 9% below its 52-week high on April 5,2022 and 5.2% above its low on May 14, 2021
* The S&P/TSX Composite is up 1% in the past 5 days and fell7.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.7 on a trailing basis and 12.6 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$3.22t
* 30-day price volatility fell to 19.08% compared with 19.12% in the previous session and the average of 14.41% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 75.2038| 2.0| 33/0
* Materials | 29.0510| 1.1| 29/22
* Financials | 17.2078| 0.3| 19/9
* Communication Services | 13.7343| 1.3| 7/0
* Industrials | 7.6975| 0.3| 18/12
* Consumer Staples | 6.8445| 0.8| 8/2
* Utilities | 3.6354| 0.4| 13/3
* Real Estate | 1.0501| 0.2| 18/5
* Health Care | 0.5705| 0.6| 3/5
* Consumer Discretionary | -3.3525| -0.5| 6/8
* Information Technology | -45.0518| -4.0| 7/9
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Canadian Natural | | | |
* Resources | 18.3000| 2.9| 52.0| 51.4
* Suncor Energy | 12.4900| 2.7| 35.6| 52.2
* Enbridge | 9.4730| 1.2| 132.0| 15.8
* * Magna International | -2.4760| -1.7| 25.6| -24.8
* Brookfield Asset | | | |
* Management | -2.9110| -0.5| 6.1| -19.6
* Shopify | -44.6400| -11.0| 4.2| -73.4
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — Stocks headed back toward session lows in the last hour of trading Monday as investors assessed the latest signs of economic malaise in the US and China.
The S&P 500 fell, dragged lower by a slide in mega caps including Tesla Inc., Amazon.com Inc. and Apple Inc. The tech-heavy Nasdaq 100 dropped more than 1%. Equity markets gave up earlier gains in a seesaw session amid data showing China’s industrial output and consumer spending hit the worst levels since the pandemic began, hurt by Covid lockdowns. New York state manufacturing activity unexpectedly contracted in May, stoking concerns of slowing economic activity that may complicate the Federal Reserve’s policy path.
Adding to those growth concerns, New York City is preparing to hit a high Covid-transmission level in the coming days that would have it reconsidering mask requirements in public places.
The risk of an economic downturn amid price pressures and rising borrowing costs remains the major worry for markets. Goldman Sachs Group Inc. Senior Chairman Lloyd Blankfein urged companies and consumers to gird for a US recession, saying it’s a “very, very high risk.”  That said, while the US market is pricing in 40% odds of a recession, history shows the S&P 500 tended to rally in the absence of the worst case, according to a study by UBS Group AG. 
Market commentary
* “You’ve got investors pulling back from the market in the expectation that we’re going to have a recession,” David Donabedian, chief investment officer of CIBC Private Wealth Management, said by phone. “It’s hard to, frankly, make a strong argument against that, the idea that we’ll have a recession. We know that that’s what Federal Reserve tightening produces most of the time, it’s a recession. And so you have to have a good answer to the question of why would this time be different, and it’s not that easy to come up with that answer, frankly.”
* “With inflation showing little sign of letting up, the Fed is under pressure to accelerate the pace of tightening,” Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, said in a note. “This is increasingly problematic as the complicating factors from the Russia-Ukraine conflict and the China COVID response are also intensifying. All told, this suggests global growth may be decelerating more quickly than forecast.”
* In corporate news, Twitter Inc. shares fell Monday, erasing all the gains the stock made since Elon Musk disclosed his stake in the social media platform. JetBlue Airways Corp. made a hostile $3.3 billion cash bid for Spirit Airlines Inc., appealing directly to shareholders to prevail over a rival offer for the discount carrier. Verizon Communications Inc. plans to raise prices on its wireless bills for the first time in two years. McDonald’s Corp. said it will pull out of Russia after more than 30 years of operation in the country and will take a write-off of $1.2 billion to $1.4 billion for the move.
* Cryptocurrencies dipped as the mood in stocks weakened. That took Bitcoin back to around the $30,000 level.
What to watch this week:
* Fed Chair Jerome Powell among slate of Fed speakers Tuesday
* Reserve Bank of Australia releases minutes of its May policy meeting Tuesday
* G-7 finance ministers and central bankers meeting Wednesday
* Eurozone, UK CPI Wednesday
* Philadelphia Fed President Patrick Harker speaks Wednesday
* China loan prime rates Friday

Stocks
* The S&P 500 fell 0.5% as of 3:47 p.m. New York time
* The Nasdaq 100 fell 1.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.2% to $1.0432
* The British pound rose 0.4% to $1.2317
* The Japanese yen rose 0.1% to 129.04 per dollar
Bonds
* The yield on 10-year Treasuries declined three basis points to 2.88%
* Germany’s 10-year yield declined one basis point to 0.94%
* Britain’s 10-year yield declined one basis point to 1.73%
Commodities
* West Texas Intermediate crude rose 2.9% to $113.71 a barrel
* Gold futures rose 0.9% to $1,823.60 an ounce
–With assistance from Michael Msika, Andreea Papuc, Robert Brand and Isabelle Lee.
Have a lovely evening everyone.

Jordan

“To be prepared is half the victory” -Miguel De Cervantes

Assistant to Carolann Steinhoff

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
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