May 18, 2023, Newsletter

Dear Friends,

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

On May 18, 1980, the Mount St. Helens volcano in Washington state exploded, leaving 57 people dead or missing. Go to article >

Largest underwater scanning project in history’ gives never-before-seen view of Titanic. Deep sea investigators and filmmakers have managed to uncover incredible details about the 1912 tragedy.

Orcas have sunk 3 boats in Europe and appear to be teaching others to do the same. But why? Scientists think a traumatized orca initiated the assault on boats after a “critical moment of agony” and that the behavior is spreading among the population through social learning. Live Science
PHOTOS OF THE DAY

Woking, UK
An RHS Wisley Garden volunteer makes her way along Wisteria Walk. For the first time since it was planted in 2018, the display can be viewed as designed, with purple and white blooms together. Frost has damaged the cultivar in previous years so horticulturists from the RHS worked through the night with fire pits to protect the delicate flowers
Photograph: Andrew Matthews/PA

Cremona, Canada
A raven lands on the roof of a barn in Alberta as thick smoke from wildfires obscures the sun
Photograph: Jeff McIntosh/AP

Keswick, UK
Herdwick shepherds exhibit their best rams at the annual Keswick Tup Fair which, since the 1840s, has been held in the Lake District town on the first Thursday after the third Wednesday in May. Judges are looking for the best examples of the local Herdwick breed with their hoar-frost white face and legs and distinctive slate blue fleece, hand painted with red ochre which makes them easily visible of distant Cumbrian fells. Stanley Jackson (second left) get his ram standing correctly for the the official pictures after it won the Edmondson Cup, awarded to the best shearling
Photograph: Christopher Thomond/The Guardian
Market Closes for May 18^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1553, one of the earliest business ventures financed by selling stock to the public was launched, as three ships set out from England seeking “discoverie of new trades northe warde” in Russia. The Russia Company, or Muscovy Company, earned no money for at least three decades, and many investors died without ever receiving a dividend
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 20,297.09 in Toronto.
Canadian Pacific Kansas City Ltd. contributed the most to the index gain, increasing 0.8%. Bausch Health Cos. had the largest increase, rising 14.6%.
Today, 110 of 232 shares rose, while 117 fell; 6 of 11 sectors were higher, led by industrials stocks.
Insights
* So far this week, the index fell 0.6%, heading for the biggest decline since the week ended March 17
* The index advanced 1% in the past 52 weeks. The MSCI AC Americas Index gained 6.2% in the same period
* The S&P/TSX Composite is 3.5% below its 52-week high on June 2, 2022 and 13.6% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 0.6% in the past 5 days and fell 1.9% 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 13.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.23t
* 30-day price volatility fell to 9.73% compared with 9.74% in the previous session and the average of 9.42% over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | 22.6386| 0.8| 22/5
Energy | 13.4941| 0.4| 30/7
Information Technology | 9.8840| 0.7| 8/4
Consumer Discretionary | 3.5131| 0.5| 8/7
Health Care | 3.4491| 4.7| 5/1
Communication Services | 0.0113| 0.0| 2/3
Real Estate | -1.6645| -0.3| 5/16
Consumer Staples | -2.0230| -0.2| 5/6
Utilities | -3.6126| -0.4| 3/13
Financials | -9.1524| -0.1| 14/14
Materials | -35.8898| -1.4| 8/41
================================================================
| | |Volume VS | YTD | Index | | 20D AVG | Change Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Canadian Pacific Kansas | 5.4290| 0.8| -41.9| 10.6
Ritchie Bros | 4.4490| 5.1| 21.4| -4.4
Constellation Software | 4.1210| 1.2| -5.1| 27.7
Agnico Eagle Mines | -5.3680| -2.1| -34.5| 3.1
RBC | -6.9320| -0.6| -16.1| 0.5
Barrick Gold | -9.4250| -3.1| 11.5| 3.5
US
By Rita Nazareth
(Bloomberg) – Stocks climbed on signals that American lawmakers are making progress on debt-ceiling talks and will be able to avert a first-ever default. Treasury yields rose on speculation the Federal Reserve will need to keep rates higher for longer as inflation remains elevated.
The S&P 500 closed at a nine-month high while the Nasdaq 100 rallied almost 2% — hitting the highest since April 2022.
House Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer making plans for votes in the coming days on a bipartisan deal to avert a US debt default. Equities briefly pared gains after House Financial Services Chairman Patrick McHenry said the two sides are “not close to being done.”
“We could see some volatility over the negotiations in the coming days,” said Dan Clifton at Strategas. “Negotiators are\ not only trying to get a deal quickly, but the effort is to get a complete deal so that only one debt ceiling increase is needed.”
As the US cash flow position deteriorates, Clifton also highlighted the impact of larger liquidity injections on the market. “As tax revenues underperform, Treasury is spending down the Treasury General Account. This is leading to more liquidity and, not coincidentally, Nasdaq outperforming the S&P 500,” he added.
The swap market showed bets on a June hike climbed to about 40% after Fed Bank of Dallas President Lorie Logan said the case for a pause next month is not clear. In contrasting remarks, central bank Governor Philip Jefferson outlined the dovish case for patience. The two-year bond yield, which is more sensitive to imminent Fed moves, topped 4.2% and climbed toward the highest in a month.
The Fed is “in a really tough spot,” Katerina Simonetti at Morgan Stanley Private Wealth Management, told Bloomberg Television. “The big decision for them is the timing because once they announce that they’re done raising rates, markets are just going to assume that they’ve succeeded. And it might not necessarily be the case. Inflation so far is proving to be sticky.”
Key events this week:
* Japan CPI, Friday
* ECB President Christine Lagarde participates in panel at Brazil central bank conference, Friday
* New York Fed’s John Williams speaks at monetary policy research conference in Washington; Fed Chair Jerome Powell and former chair Ben Bernanke to take part in panel discussion, Friday
Some of the main moves in markets:

Stocks
* The S&P 500 rose 0.9% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.8%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World index rose 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.6%
* The euro fell 0.6% to $1.0774
* The British pound fell 0.6% to $1.2410
* The Japanese yen fell 0.7% to 138.69 per dollar
Cryptocurrencies
* Bitcoin fell 2.2% to $26,749.92
* Ether fell 1.7% to $1,795.95
Bonds
* The yield on 10-year Treasuries advanced eight basis points to 3.65%
* Germany’s 10-year yield advanced 11 basis points to 2.45%
* Britain’s 10-year yield advanced 12 basis points to 3.96%
Commodities
* West Texas Intermediate crude fell 1.2% to $71.99 a barrel
* Gold futures fell 1.2% to $1,978.70 an ounce
–With assistance from Carly Wanna, Isabelle Lee, Peyton Forte and Felice Maranz.
Have a lovely evening.

Be magnificent!
As ever,

Isabel

Those who know do not speak. Those who speak do not know. Lao Tsu, 571 BC

Assistant to Carolann Steinhoff, Registered Representative

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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www.carolannsteinhoff.com