Dear Friends,
Tangents:
May 19, 2001: Apple, Inc. opened its first retail stores, at Tysons Corner, Virginia, and at Glendale Galleria in California, redefining how consumer technology is sold, demonstrated, and serviced at scale. Go to article.
May 19, 1780: Dark Day in New England.
May 19, 1936: Gone with the Wind published.
Ho Chi Minh, Vietnamese President, b. 1890.
Malcolm X, black civil rights leader, b. 1925.
Never let your sense of morals get in the way of doing What’s right.-Isaac Asimov.
| World’s first ‘native’ color lidar will let robots and self-driving cars map the world in full color 3D |
Ouster has launched the Rev8 set of lidar sensors that function as both a camera and a 3D mapping sensor at the same time. Its engineers say these are the first devices of their kind in the world. Read more.
| Doctor’s kit found on Mount Vesuvius victim in Pompeii |
A man who died in Pompeii during the eruption of Mount Vesuvius in A.D. 79 was carrying a medical kit with him, new scans reveal. Read more.
| Global warming is accelerating 5,000 times faster than rice can evolve |
A new study finds that climate change is creating environments where humans have never successfully cultivated rice before. Read more.
| ‘Truly significant’: James Webb telescope reveals largest-ever map of the universe’s hidden megastructures |
Using the James Webb Space Telescope, astronomers have created the most detailed map of the cosmic web ever. Read more.
The Shakira tax saga
Spain’s tax authority has been ordered to repay Shakira more than $64 million after a court ruled it wrongly pursued the superstar over unpaid taxes.
Christie’s sells $1.1 billion in art in one night
The blockbuster auction got a boost from a rare art collection — and another Nicole Kidman promo video with unmistakable AMC-ad energy.
This extraordinary monkey was thought to be extinct
But in one forest, it’s bouncing back.
An expensive heat wave
The incoming "Super" El Ni won’t just bring hot weather. Experts say it could cost the global economy trillions.
Southwest Airlines bans robots
A humanoid named "Stewie" recently flew from Las Vegas to Dallas, prompting Southwest to create a no-robots policy. Now, a very serious question: Was Stewie offered Biscoff cookies?
PHOTOS OF THE DAY
Mecca, Saudi Arabia
Muslim pilgrims from around the world circumambulate the Masjid al-Haram ahead of the hajj pilgrimage
Photograph: Anadolu/Getty Images
Toronto, Canada
Spectators take in a Victoria Day fireworks show at Woodbine Beach
Photograph: Arlyn McAdorey/The Canadian Press/AP
Seoul, South Korea
Humanoid robots dressed as Buddhist monks attend a parade as part of the Lotus lantern festival celebrating the Buddha’s birthday
Photograph: Jung Yeon-Je/AFP/Getty Images
Market Closes for May 19th, 2026
| Market Index |
Close | Change |
| Dow Jones |
49363.88 | -322.24 |
| -0.65% | ||
| S&P 500 | 7353.61 | -49.44 |
| -0.67% | ||
| NASDAQ | 25870.71 | -220.02 |
| -0.84% | ||
| TSX | 33741.24 | -92.11 |
| -0.27% |
International Markets
| Market Index |
Close | Change |
| NIKKEI | 60550.59 | -265.36 |
| -0.44% | ||
| HANG SENG |
25797.85 | +122.67 |
| +0.48% | ||
| SEN SEX | 75200.85 | -114.19 |
| -0.15% | ||
| FTSE 100* | 10330.55 | +6.80 |
| +0.07% |
Bonds
| Bonds | % Yield | Previous % Yield |
| CND. 10 Year Bond |
3.702 | 3.691 |
| CND. 30 Year Bond |
4.037 | 4.019 |
| U.S. 10 Year Bond |
4.6663 | 4.5934 |
| U.S. 30 Year Bond |
5.1806 | 5.1157 |
| BOC Close | Today | Previous |
| Canadian $ | 0.7276 | 0.7272 |
| US $ |
1.3743 | 1.3750 |
| Euro Rate 1 Euro= |
Inverse | |
| Canadian $ | 0.6266 | 1.5958 |
| US $ |
0.8612 | 1.1611 |
Commodities
| Gold | Close | Previous |
| London Gold Fix |
4565.40 | 4683.05 |
| Oil | ||
| WTI Crude Future | 107.77 | 105.42 |
Market Commentary:
On this day in 1568, one of the earliest known junk bonds was issued by the Russia Co., which borrowed 4,000 pounds, 8 shillings and 10 pence from the British exchequer. The loan was priced to yield 13.5%. The company had to repay the debt not with cash, but with hundreds of tons of cables and rope—making it one of the earliest asset-backed loans, as well.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.3%, or 92.11 to 33,741.24 in Toronto.
The index dropped to the lowest closing level since May 5.
Agnico Eagle Mines Ltd. contributed the most to the index decline, decreasing 3.8%.
Aya Gold & Silver Inc. had the largest drop, falling 14.5%.
Today, 120 of 220 shares fell, while 100 rose; 4 of 11 sectors were lower, led by materials stocks.
Insights
* The index advanced 30% in the past 52 weeks. The MSCI AC Americas Index gained 23% in the same period
* The S&P/TSX Composite is 2.3% below its 52-week high on March 2, 2026 and 31.2% above its low on May 23, 2025
* The S&P/TSX Composite is down 1.2% in the past 5 days and fell 1.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 22.2 on a trailing basis and 16.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$5.35t
* 30-day price volatility rose to 12.47% compared with 12.43% in the previous session and the average of 14.67% over the past month
Index Points
Materials | -231.0508| -3.8| 3/57
Consumer Discretionary| -12.1139| -1.2| 1/8
Health Care | -1.3207| -1.5| 1/3
Real Estate | -0.8885| -0.2| 8/11
Communication Services| 4.9895| 0.8| 5/0
Information Technology| 7.6095| 0.3| 7/2
Consumer Staples | 7.7474| 0.7| 9/1
Financials | 9.4416| 0.1| 14/10
Utilities | 11.6809| 1.0| 9/5
Industrials | 15.1318| 0.4| 13/16
Energy | 96.6605| 1.6| 30/7
Agnico Eagle Mines Ltd | -33.2600| -3.8| 56.3| 2.4
Brookfield Corp | -27.6300| -2.9| 39.8| -3.4
Wheaton Precious Metals | -27.2500| -4.8| 46.6| 5.9
Constellation Software | 16.3700| 4.5| 182.7| -17.3
Canadian Natural Resources | 27.2600| 2.8| 24.3| 46.2
Enbridge | 31.9300| 2.8| 55.4| 19.1
MT Newswires:
The Toronto Stock Exchange fell again Tuesday, following Friday’s tumble ahead of the holiday weekend in Canada, but this time it was lower on a more local issue as market watchers are divided over whether to prepare for the Bank of Canada turning more dovish or hawkish on interest rates.
The S&P/TSX Composite Index closed down 92.11 points, or 0.27%, to 33,741.24, adding to the 435 points lost Friday when rising global bond yields sapped investor appetite for equities, with elevated oil prices reigniting concerns around the outlook for higher inflation.
Still, the S&P 500 and the Nasdaq fell near 0.7% and near 0.8% respectively today.
Also, most sectors on the TSX were higher Tuesday, led by Energy up 2.3%, even with oil prices lower.
In contrast, the Battery Metals Index crashed 7.6%, while Base Metals was down by more than 4%, with gold down.
In commentary on the broader market, Edward Jones in a summary of its ‘Weekly market wrap’ dated May 15 noted markets this year have been "robust".
In fact, it said, despite near 10% corrections in both the S&P 500 and the TSX in March, and ongoing uncertainty around the Iran war and oil prices, stocks are back near record highs.
Then in noting there is an old adage that says, ‘Sell in May and go away’, Edward Jones asked: should investors take that approach this year?
"Overall," it said, in answering its own question, "a lot of good news is reflected in markets, and we may see a period of sideways movement or consolidation of recent gains.
"Nonetheless, we don’t yet see the conditions in place for a deep or prolonged downturn in markets — and as we know from history, time in the markets is a better strategy than trying to time yourself in and out of markets.
"While we don’t recommend selling investments, we do suggest reviewing your investment strategy: To help ensure you are well diversified and seeking opportunities if market volatility does arise, in accordance with your goals and risk tolerance."
On the economics front, data released early today showed Canada’s inflation measures were softer than anticipated in April.
Headline inflation accelerated to 2.8% year on year due to gasoline.
The average of trim/median rose by 0.16% MoM and 2.05% year on year.
Traditional core (ex. food/energy) was 0.0% MoM and up 1.5% year on year.
Royce Mendes, Head of Macro Strategy at Desjardins, wrote underlying inflation is "screaming" for a more dovish Bank of Canada.
"Having had nightmares about another round of persistently high inflation, Canadian monetary policymakers can now rest easier," he said, following the release of the CPI data.
The latest CPI data suggest underlying price pressures remain "extremely muted", he said, noting the Desjardins bias-adjusted median and trimmed mean measures now point to an average annual rate of just 1.6%, well below the simple average of 2.1% for the unadjusted measures.
According to Mendes, the bias-adjusted measures of inflation Desjardins has developed do a better job of accounting for skew in the distribution of price changes.
"The last time the gap between the bias-adjusted and unadjusted metrics was this wide in early 2024, it confirmed our thesis that the Bank of Canada was set to embark on an aggressive easing cycle.
While rate cuts are not yet on the table, market-implied pricing for two rate hikes seems misplaced.
An honest assessment of underlying inflation would have the Bank of Canada turning more dovish.
With the unemployment rate elevated and savings diminished, higher gasoline prices may be chewing through household finances in a way that reduces spending and inflationary impulses in other categories," Mendes added.
Elsewhere, Derek Holt, Scotiabank’s Head of Capital Markets Economics, said Canada is emerging from a prior soft patch on high frequency core inflation measures, "but hardly at a screaming pace" thus far.
A lot of data still lies ahead and nothing is settled by one report, he added.
Looking ahead, David Doyle, Head of Economics at Macquarie Group, anticipates some firming in inflation ahead as pass through from higher oil prices occurs and the output gap shrinks amidst economic improvement.
Macquarie’s baseline remains for 50 bps of BoC hikes by end-year with the most likely timing for the first 25 bps hike in September.
Of commodities, West Texas Intermediate crude oil eased Tuesday after the United States extended a ceasefire with Iran, in favor of continuing peace talks with the country.
WTI oil for June delivery closed down $0.89 to settle at US$107.77, falling off the highest since April 7.
July Brent oil was down US$1.70 to US$110.40.
Gold moved lower by midafternoon Tuesday as the dollar and yields continued to climb on rising concerns higher interest rates are coming as oil prices rise due to the war on Iran.
Gold for June delivery was down US$45.80 to US$4,509.50 per ounce.
US
By Rita Nazareth
(Bloomberg) — The latest bout of weakness in bonds lifted yields to multi-year highs, reducing the appetite for stocks on speculation that a torrid market surge has gone too far amid war-fueled inflation risks.
With oil holding above $100 and no signs of an end to the Iran conflict, Treasury 30-year yields hit levels last seen in 2007 on concern that elevated energy costs are increasing the chances that the next Federal Reserve move will be a hike, not a cut.
Equities extended their drop from a record, with the S&P 500 posting its longest losing streak since the end of March.
“The issue of rising bond yields is still something which could create problems for today’s expensive stock market,” said Matt Maley at Miller Tabak.
That’s happening at a time when fund managers increased their allocations to stocks by the most on record, according to a Bank of America Corp. survey.
Their exposure came close to triggering a “sell signal,” BofA’s Michael Hartnett said.
With 73% respondents long on semiconductor stocks, this was identified as the most-crowded trade.
While conditions for a long and painful downturn may not be in place, the high-profile group of chipmakers has come under intense volatility after a series of records fueled by the revival of the artificial-intelligence frenzy.
A key industry gauge closed little changed after sinking 3.6% earlier Tuesday.
“Yes, we remain tactically bullish, but we would not be maximally net long given the elevated probability of a pullback led by tech,” said the JPMorgan Market Intelligence desk led by Andrew Tyler, adding dips will likely be bought.
Next up will be Nvidia Corp.’s results due Wednesday after the closing bell.
The giant chipmaker’s earnings should take on greater importance at a time when the market is a bit tired and facing renewed worries about rising bond yields and the possibility of a Fed hike due to a resurgence of inflation, according to Paul Stanley at Granite Bay Wealth Management.
“Investors need some reassurance that the AI story is still alive and well and that the company is producing enough revenue growth to back up its elevated valuation,” he said.
“We believe that Nvidia will report financial results that justify its valuation, which is just what the stock market is looking for.”
On the geopolitical front, President Donald Trump threatened to resume strikes on Iran in the coming days as part of the push for a deal to end the war.
Meantime, NATO is discussing the possibility of helping ships pass through the Strait of Hormuz if the vital waterway isn’t reopened by early July.
Corporate Highlights:
* Alphabet Inc.’s Google is redesigning its iconic search box and adding new artificial intelligence coding tools, the latest steps in the company’s multibillion-dollar campaign to expand influence in the age of AI.
* Cisco Systems Inc.’s Chief Financial Officer Mark Patterson warned that the company would see “ups and downs” with its gross profit margin as it pushes further into AI infrastructure.
* Intercontinental Exchange Inc., owner of the New York Stock Exchange, is adding futures contracts for computing power as the market for tracking the price of what’s driving AI technology continues to develop.
* A key gauge of Home Depot Inc. Sales missed expectations in the latest quarter as muted housing demand and high borrowing costs limited consumer spending on improvement projects.
* Target Corp. has quietly emerged as one of this year’s hottest retail stocks, outperforming many staples and big-box peers. The rally has also raised the bar heading into quarterly results.
What Bloomberg Strategists say…
“The jump in Treasury yields is squeezing the compensation for equity risk across major US benchmarks, further dimming the appeal of stocks.”
—Tatiana Darie, Macro Strategist, Markets Live.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.6%
* The Dow Jones Industrial Average fell 0.6%
* The MSCI World Index fell 0.4%
* Philadelphia Stock Exchange Semiconductor Index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.4% to $1.1606
* The British pound fell 0.3% to $1.3400
* The Japanese yen fell 0.1% to 159.05 per dollar
Cryptocurrencies
* Bitcoin was little changed at $76,783.79
* Ether fell 0.2% to $2,110.93
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 4.66%
* Germany’s 10-year yield advanced five basis points to 3.19%
* Britain’s 10-year yield advanced three basis points to 5.13%
* The yield on 2-year Treasuries advanced seven basis points to 4.11%
* The yield on 30-year Treasuries advanced five basis points to 5.18%
Commodities
* West Texas Intermediate crude fell 0.8% to $107.77 a barrel
* Spot gold fell 1.9% to $4,481.92 an ounce
Have a lovely evening.
Be magnificent!
As ever,
Carolann
The good life is one inspired by love and guided by knowledge. — Bertrand Russell, 1872-1970.
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 (Text Only)
Toll Free: 1.877.430.5895
Fax: 778.430.5828