Dear Friends,
Tangents:
I started reading Brad Jacob’s recently published book a couple of nights ago and I love his dedication. I wanted to share it with you. He wrote:
“To Lamia, my wife and life partner,
for your loving support of our daughters and me
through time and space, and for teaching us the value
of your ‘3 Ps’: always be patient, pleasant, and polite.”
May 20, 1873: Levi Strauss and Jacob Davis receive the patent for riveted work trousers, effectively creating the blueprint for modern blue jeans.
May 20, 1927: Charles Lindbergh took off for Paris from Roosevelt Field in Long Island, N.Y., aboard the Spirit of St. Louis on the first nonstop solo flight across the Atlantic Ocean. Go to article.
May 20, 1932: Amelia Earhart Atlantic crossing.
May 20, Honorde Balzac, writer, b 1799.
Henri Rousseau, painter, b. 1844.
I’ve been imitated so well I’ve heard people copy my mistakes. – Jimi Hendrix.
| Deadly, highly venomous box jellyfish discovered in Singapore is a newfound species |
Researchers identified a new species of box jellyfish and recorded a surprising range expansion for the Thai sea wasp after analyzing the morphology and DNA of a handful of jellies in Singapore. Read more.
| 800-year-old notebook and fancy silk toilet paper discovered in medieval latrine in Germany |
Archaeologists recovered the 10-page wax notebook with Latin writing and its leather carrying case from a medieval latrine in Germany. Read more.
| ‘The system is likely to reach a breaking point’: Major Italian volcano is speeding toward a transition, and a major eruption could be on the way |
Campi Flegrei, a volcanic caldera near Naples, is speeding toward a transition, a new study suggests, but there are still a lot of questions as to whether it will erupt in the near future. Read more.
| China installs world’s largest floating wind turbine in deep water test — it generates enough energy to power 4,200 homes annually |
Three Gorges Pilot, a 16-megawatt floating offshore wind turbine, marks a major step for deep-water renewable energy and the future of floating wind farms. Read more.
Vanishing homes on Zillow
Hundreds, or perhaps thousands, of home listings could be going dark on Zillow today. Here’s why.
Thailand tightens visa restrictions
Fed up with unruly tourist behavior, Thailand is ending a 60-day visa-free entry program for travelers from dozens of countries, including the US.
Chicks from artificial eggs
A biotech company said its scientists have hatched 26 chicks from artificial eggs. Could the breakthrough help save endangered species?
Video: Pope Leo greets young Catholics with viral 6-7 motion
The Vatican recently gained some aura points with Gen Z.
North Korea’s women’s football club
The soccer players seen below became the first North Korean athletes to visit South Korea in more than seven years.
This smart contact lens might replace your phone
Silicon Valley apparently thinks your eyes are underutilized. Several companies think wearable technology could go one step further with a smart contact lens.
PHOTOS OF THE DAY
Guangzhou, China
People take photos as a formation of 5,190 drones creates illuminations in the sky near Canton Tower to mark the 16th China Tourism Day
Photograph: China News Service/Getty Images
Dog yoga and the Ministry of Hound: Goodwoof festival
Yoga with a canine twist in the festival’s wellness space
Photograph: Jill Mead/The Guardian
Yangon, Myanmar
Visitors buy durian fruit during the durian festival 2026 at the Myaypadethakyun event space
Photograph: Nyein Chan Naing/EPA
Market Closes for May 20th, 2026
| Market Index |
Close | Change |
| Dow Jones |
50009.35 | +645.47 |
| +1.31% | ||
| S&P 500 | 7432.97 | +79.36 |
| +1.08% | ||
| NASDAQ | 26270.36 | +399.65 |
| +1.54% | ||
| TSX | 34161.82 | +420.59 |
| +1.25% |
International Markets
| Market Index |
Close | Change |
| NIKKEI | 59804.41 | -746.18 |
| -1.23% | ||
| HANG SENG |
25651.12 | -146.73 |
| -0.57% | ||
| SEN SEX | 75318.39 | +117.54 |
| +0.16% | ||
| FTSE 100* | 10432.34 | +101.79 |
| +0.99% |
Bonds
| Bonds | % Yield | Previous % Yield |
| CND. 10 Year Bond |
3.587 | 3.702 |
| CND. 30 Year Bond |
3.947 | 4.037 |
| U.S. 10 Year Bond |
4.5855 | 4.6663 |
| U.S. 30 Year Bond |
5.1230 | 5.1806 |
| BOC Close | Today | Previous |
| Canadian $ | 0.7275 | 0.7276 |
| US $ |
1.3746 | 1.3743 |
| Euro Rate 1 Euro= |
Inverse | |
| Canadian $ | 0.6257 | 1.5982 |
| US $ |
0.8600 | 1.1627 |
Commodities
| Gold | Close | Previous |
| London Gold Fix |
4496.70 | 4565.40 |
| Oil | ||
| WTI Crude Future | 101.86 | 107.77 |
Market Commentary:
On this day in 1999, eToys, a startup internet retailer, went public on Nasdaq. Initially expected to be priced at $10-$12 per share, the stock was underwritten at $20 and quadrupled before the opening bell. The first trade was at $83 9/16. The shares closed the day at $76 9/16, a one-day return of 282.8%. Just 19 months later, in February 2001, the company announced it would file for bankruptcy.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 1.2% at 34,161.82 in Toronto.
The move was the biggest since rising 1.9% on April 30 and follows the previous session’s decrease of 0.3%.
Today, financials stocks led the market higher, as 10 of 11 sectors gained; 155 of 220 shares rose, while 62 fell.
Royal Bank of Canada contributed the most to the index gain, increasing 1.9%.
Goeasy Ltd. had the largest increase, rising 11.8%.
Insights
* In the past year, the index had a similar or greater gain 14 times. The next day, it advanced nine times for an average 0.8% and declined five times for an average 0.9%
* This month, the index rose 0.6%
* The index advanced 31% in the past 52 weeks. The MSCI AC Americas Index gained 25% in the same period
* The S&P/TSX Composite is 1.1% below its 52-week high on March 2, 2026 and 32.8% above its low on May 23, 2025
* The S&P/TSX Composite is down 0.4% in the past 5 days and fell 0.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 22.4 on a trailing basis and 16.4 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$5.33t
* 30-day price volatility rose to 12.55% compared with 12.47% in the previous session and the average of 14.58% over the past month
Index Points
Financials | 209.9748| 1.8| 23/1
Materials | 138.0048| 2.3| 51/9
Information Technology | 56.1836| 2.5| 7/2
Consumer Discretionary | 27.4986| 2.7| 8/1
Industrials | 18.8155| 0.5| 17/12
Consumer Staples | 11.9847| 1.1| 9/1
Real Estate | 9.2360| 2.0| 17/2
Utilities | 5.1433| 0.4| 9/4
Communication Services | 3.9320| 0.6| 4/1
Health Care | 1.5290| 1.7| 4/0
Energy | -61.7336| -1.0| 6/29
RBC | 47.0800| 1.9| 4.5| 10.0
Shopify | 45.5900| 3.8| -5.1| -34.7
TD Bank | 24.5700| 1.4| -13.8| 16.3
Canadian Natural Resources | -12.2500| -1.2| 21.5| 44.4
Cenovus | -16.7800| -4.1| 15.8| 80.6
Suncor | -20.9200| -2.6| 22.3| 53.2
MT Newswires:
The Toronto Stock Exchange on Wednesday recovered much of the 500-plus points lost over the prior two sessions as CIBC said "the bar to get the Bank of Canada into a tightening stance is higher than the market thinks", amid fears higher rates would lift borrowing costs for many companies and sideline them and consumers when they are needed to help spur the economy.
The S&P/TSX Composite Index closed up 420.59 points, or 1.25%. to 34,161.82.
with most sectors higher, led by Base Metals, up 2.5%, helped by elevated gold.
In contrast, the Battery Metals Index was down 4.9% and Energy was 2.3% lower.
On the outlook for rates, CIBC Capital Markets economists Avery Shenfeld and Andrew Grantham published a note titled ‘Who really fears inflation, the Bank of Canada or the Fed?’.
Soaring oil prices, alongside price hikes for aluminum, helium and other supplies shipped through the now shuttered Strait of Hormuz, have markets looking at downside risks to global growth, and more immediately, upside risks to inflation, the CIBC pair noted. That’s seen markets replace earlier expectations for a Fed rate cut this year with the possibility of a hike, and price in roughly two 25 basis point increases in Canada before year end, they said.
But they also asked, which of those central banks should be in greater fear of inflation these days, and does current relative pricing for policy changes make sense?
CIBC’s current rate forecast has both central banks on hold for an extended period, although the bank has penciled in a quarter point rate cut for the Fed in December that is conditional on an early end to the war.
The Bank of Canada’s own language suggests it will not be looking to hike rates this year in any scenario that sees the pressure from oil prices abating in the second half of the year on a resumption of shipments through the Strait of Hormuz, the CIBC duo noted.
But with that geopolitical outcome by no means certain, investors will put some weight on a scenario in which a more protracted conflict sees triple-digit crude prices extending from here to the end of the year, Shenfeld and Grantham said.
Their analysis suggest the United States would be more at risk of a broader inflationary spiral than Canada in that scenario, making it unlikely the BoC would be hiking first and more aggressively than the Fed.
Further afield, things could look a bit different, according to CIBC.
A very extended rise in crude prices might be more of a positive for the Canadian economy than a negative, if it triggered an acceleration in energy-sector capital spending.
Or, in CIBC’s base case, with a return to US$75/bbl oil prices, the bank could see the BoC nudging interest rates up to 2.75% by the end of 2027 if a favorable outcome in trade talks reduces the drag on exports and business capital spending and begins to lower unemployment.
But for this year at least, the bar to get the Bank of Canada into a tightening stance is higher than the market thinks, at least relative to what the case would be for the Fed, CIBC added.
BMO Capital Markets noted at the same time as the consumer price index was released this week, April’s New Housing Price Index pointed to further deceleration in shelter costs for May.
The house-only portion, which feeds directly into homeowners’ replacement costs, fell 0.6% in April alone, the largest drop since 2009.
By this measure, prices remain 3.5% below year-ago levels.
And, the bank also noted, there’s little relief on the horizon as the market continues to digest a glut of new inventory and a backlog of projects coming online.
Separately, BMO noted, rent growth also continues to decelerate, although progress is slower than what it has seen on the ground as the CPI reflects delays in things like switching to cheaper leases.
Here, the bank said, it looks like the downside pressure will remain as long as immigration controls keep demand growing much slower than supply.
"Altogether, housing continues to be a key source of disinflationary pressure as the economy faces further challenges in energy and other resources," it added.
Of commodities, gold traded higher by midafternoon Wednesday as treasury yields and the dollar fell.
Gold for June delivery was up US $25.90 to US$4,537.10 per ounce.
But West Texas Intermediate crude oil closed sharply lower after as U.S. President Trump said negotiations with Iran were in their final stages while threatening to renew attacks if a deal cannot be reached.
WTI crude oil for July delivery closed down $5.89 to settle at US$98.26 per barrel, while July Brent oil was last seen down US$6.18 to US$105.10.
US
By Rita Nazareth
(Bloomberg) — A slide in oil prices on hopes for a deal to end the war in Iran lifted stocks and bonds, with traders also awaiting Nvidia Corp.’s results for clues on whether a tech-led surge from 2026 lows more room has to run.
US crude fell to around $98 on a report President Donald Trump said Washington is in the “final stages” with Tehran.
The S&P 500 rose 1.1%, halting a three-day losing streak.
With Nvidia’s sales estimated to have grown at the fastest clip in over a year, the shares paced gains in chipmakers.
Yields on long-dated Treasuries slid from the highest since 2007.
Trump said, “we’ll see what happens” with Iran, adding that a deal will be made or “we’re going to do some things that are a little bit nasty, but hopefully that won’t happen,” according to a White House pool report.
Iran is reviewing the US’s new draft in response to Tehran’s 14-point proposal and is yet to give a response, Tasnim reported.
President Masoud Pezeshkian posted on X that Iran has “explored every avenue to avert war,” adding that “all paths remain open from our side.”
“Everyone wants to see this end, but negotiations so far have been far apart on key issues, with both sides expecting each other to blink first,” said veteran strategist Louis Navellier.
“Even if a deal is struck, it may take some time to be sure it won’t be violated for things to fully return to normal.”
Wall Street’s rebound came after a decline driven by fears that a war-driven jump in energy costs would fuel price pressures.
A record of the Federal Reserve’s latest policy meeting showed a majority of officials warned the central bank would likely need to consider raising rates if inflation continued to run persistently above their target.
Despite the equity-market gains on Wednesday, it’s worth noting that it was not the first time optimism took hold even without any visible signs of progress in negotiations between the US and Iran.
“We have our usual hopes that today’s comments about the final stages of the war prove to be true, though we retain our now-well-earned skepticism that it will be the case immediately,” said Steve Sosnick at Interactive Brokers.
With so much uncertainty around the impacts of the conflict, Nvidia’s earnings come at just the right time, when the market needs some reassurance, according to James Demmert at Main Street Research.
For Nvidia, the focus is typically not whether it beats expectations, but by how much, given it has topped both revenue and earnings estimate for 13 consecutive quarters, according to Adam Turnquist at LPL Financial.
Investors will also seek fresh guidance on the firm’s longer-term sales forecast and its attempts to reenter the Chinese market for AI processors.
Chief Executive Officer Jensen Huang recently said that he believes China will reopen “over time.”
Corporate Highlights:
* OpenAI is preparing to file for an initial public offering in the coming weeks and is targeting a public debut sometime in the fall, according to a person familiar with the plan.
* Lowe’s Cos. reported sales growth in the first quarter that just missed estimates yet kept its full-year outlook unchanged in the face of higher transportation costs, in part due to productivity boosts from artificial intelligence.
* Target Corp.’s turnaround gained traction last quarter, but the retailer worried investors after striking a more cautious tone about the coming months.
* TJX Cos. raised its sales growth expectations for the year as cautious shoppers spend on the lower priced goods at the company’s discount chains.
* Cava Group Inc. raised its annual sales outlook after diners flocked to its restaurants in the first quarter, defying the crunch in consumer budgets that has weighed on the industry.
What Bloomberg Strategists say…
“The key number to listen out for in Nvidia’s earnings will be $1 trillion. That’s CEO Jensen Huang’s minimum projection for sales of Blackwell and Rubin AI chips through 2027.”
—Sebastian Boyd, Macro Strategist, Markets Live.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.7%
* The Dow Jones Industrial Average rose 1.3%
* The MSCI World Index rose 1%
* Philadelphia Stock Exchange Semiconductor Index rose 4.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.2% to $1.1628
* The British pound rose 0.3% to $1.3439
* The Japanese yen rose 0.1% to 158.88 per dollar
Cryptocurrencies
* Bitcoin rose 0.8% to $77,564.21
* Ether rose 0.9% to $2,135.53
Bonds
* The yield on 10-year Treasuries declined nine basis points to 4.57%
* Germany’s 10-year yield declined 10 basis points to 3.10%
* Britain’s 10-year yield declined 14 basis points to 4.99%
Commodities
* West Texas Intermediate crude fell 5.5% to $98.47 a barrel
* Spot gold rose 1.4% to $4,546.74 an ounce
Have a lovely evening.
Be magnificent!
As ever,
Carolann
Who looks outside, dreams; who looks inside, awakes. –Carl Jung, 1875-1961.
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