May 26, 2023, Newsletter

Dear Friends,

Tangents: Happy Friday.

May 26, 1805: Napoleon crowned King of Italy.
1805: Lewis & Clark see Rocky Mountains.
May 26^th, 1896: The Dow Jones Industrial Average was first published. The average price of the 11 initial stocks was 40.94.  Go to article > 

John  Wayne, actor, b. 1907.

Virgin Galactic still wants to make commercial flights on supersonic planes to the edge of space.  Not exactly the most relaxing way to spend a vacation, but to each their own.

New unprecedented images reveal what’s happening on the sun as it approaches ‘solar maximum’.  Why do so many images from space look edible?

We’re still waiting for self-driving cars on a large scale, but autonomous boats are already a thing.  Well, it’s a start.

Climate change could trigger gigantic deadly tsunamis from Antarctica, new study warns
Slippages in sediment beneath the Antarctic seabed could spawn gigantic tsunamis as oceans warm.  Read More

A rare type of black hole never proven to exist could be orbiting our galaxy right now, Hubble telescope reveals
A potential intermediate-mass black hole may be lurking in Messier 4, the nearest globular star cluster to Earth, new Hubble data reveals.  Read More

Antarctic currents supplying 40% of world’s deep ocean with nutrients and oxygen slowing dramatically
These deep ocean tides supply almost half of the world’s oceans with vital nutrients and oxygen, but melting ice shelves are slowing them down. Read More

Middle gets the armrests: A flight attendant offers 12 etiquette rules for flying.
PHOTOS OF THE DAY

RHS Chelsea flower show 2023
The show makes a backdrop for a performance drawing on motifs from myth and folklore.  Photograph: Sarah Lee/The Guardian

A kestrel lands on a branch in Riva, which is on its migratory route, in Istanbul, Turkey.  Photograph: Anadolu Agency/Getty Images

A snow leopard in the Mount Qomolangma reserve area in south-west China’s Tibet Autonomous Region. Snow leopards are under first-class state protection and usually live in mountains between 2,500m and 5,000m.  Photograph: Xinhua/Shutterstock
Market Closes for May 26^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1896: The Dow Jones Industrial Average was first published. The index initially consisted of 12 industrial giants, including American Sugar and National Lead. The index’s value that day: 40.94.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.7% at 19,920.31 in Toronto.
The move was the biggest since rising 1.5% on May 5 and follows the previous session’s decrease of 0.8%.
Shopify Inc. contributed the most to the index gain, increasing 2.6%. Celestica Inc. had the largest increase, rising 10.3%.
Today, 171 of 232 shares rose, while 56 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index fell 3.5%
* So far this week, the index fell 2.1%, heading for the biggest decline since the week ended March 10
* The index declined 3% in the past 52 weeks. The MSCI AC Americas Index gained 2.7% in the same period
* The S&P/TSX Composite is 5.3% below its 52-week high on June 2, 2022 and 11.5% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 13.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.15t
* 30-day price volatility rose to 10.68% compared with 10.37% in the previous session and the average of 9.26% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 63.5676| 1.1| 26/3
Information Technology | 31.9291| 2.1| 12/0
Energy | 10.7619| 0.3| 25/13
Consumer Discretionary | 9.1728| 1.3| 10/5
Materials | 9.1318| 0.4| 37/13
Industrials | 8.7209| 0.3| 19/7
Consumer Staples | 5.9545| 0.7| 8/3
Utilities | 5.4112| 0.6| 13/3
Real Estate | 2.8580| 0.6| 16/3
Communication Services | 1.8322| 0.2| 4/1
Health Care | -3.1136| -4.2| 1/5
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 16.7800| 2.6| -24.2| 71.6
RBC | 15.4000| 1.3| -39.1| -3.3
Bank of Montreal | 8.5770| 1.5| -25.1| -6.5
Barrick Gold | -2.0800| -0.7| -53.0| -0.3
Nutrien | -2.6740| -1.0| -31.7| -23.0
Tilray Brands | -2.7790| -20.4| 145.6| -31.1
US
By Carly Wanna and Isabelle Lee
(Bloomberg) — The frenzy surrounding artificial intelligence led another day of gains in the stock market as traders were also growing more confident a deal on the US debt limit would be reached.
The S&P 500 rose 1.3% and the tech-heavy Nasdaq 100 added 2.6% as Marvell Technology Inc. said revenues in 2024 would “at least double” from a year ago on a surge in demand from AI, echoing sentiments from Nvidia Corp. earlier in the week.
Shares of the chipmaker surged 32%.
The gains came as US negotiators also appeared to be moving closer to an agreement to raise the US debt limit and cap federal spending for two years.
A US default could result in catastrophic damage, putting markets on edge.
However, House Speaker Kevin McCarthy said he believed progress had been made last night.
“Today we are getting a boost from debt ceiling headlines plus continued AI enthusiasm,” said John Kolovos, chief technical strategist at Macro Risk Advisors.
Investors were demanding less of a premium to hold US Treasury bills seen most at risk of nonpayment if a deal wasn’t reached in time.
Securities expiring in early June — when Treasury Secretary Janet Yellen warned the government could run out of money — are all yielding less than 6% on Friday.
Meanwhile, the rate-sensitive two-year Treasury drifted as traders considered how a debt deal could play into the Federal Reserve’s path forward on interest rates.
The two-year yield hovered around 4.56% after a report on consumer spending showed the Fed still has more work to do to bring inflation back towards its target.
The personal consumption expenditures price index, one of the Fed’s preferred inflation gauges, rose by a faster-than-expected 0.4% in April.
“While we believe that there are good chances for a [debt] resolution before the FOMC meeting, any deal would almost certainly include some fiscal tightening, which should reduce the need for the Fed to hike rates,” said Brian Rose, senior US economist at UBS Chief Investment Office. “Going past the debt ceiling deadline would have serious consequences, and in that event there is almost no chance that the Fed would hike.”
In other corporate news, retailer Gap Inc. rallied 12% after reporting better-than-expected results.
Workday Inc. jumped 10% after results at the application software company pointed to stable demand.
And Ford Motor Co. rose 6.2% after striking a deal with Tesla Inc. to give its electric vehicle customers access to the Tesla Supercharger network.
Elsewhere in Europe, the Stoxx 600 rose with chipmakers including ASML Holding NV advancing for a second day.
Glencore Plc gained after a report that its Viterra unit is in talks to merge with Bunge Ltd., one of the world’s largest crop merchants.
And in Asia, the benchmark CSI 300 index ended little changed, bringing the week’s losses to 2.4% amid growth concerns.
Stocks
* The S&P 500 rose 1.3% as of 4:03 p.m. New York time
* The Nasdaq 100 rose 2.6%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro was little changed at $1.0729
* The British pound rose 0.3% to $1.2352
* The Japanese yen fell 0.4% to 140.57 per dollar
Cryptocurrencies
* Bitcoin rose 1.1% to $26,774.72
* Ether rose 1.4% to $1,834.97
Bonds
* The yield on 10-year Treasuries declined two basis points to 3.80%
* Germany’s 10-year yield advanced two basis points to 2.54%
* Britain’s 10-year yield declined four basis points to 4.33%
Commodities
* West Texas Intermediate crude rose 1.3% to $72.77 a barrel
* Gold futures rose 0.2% to $1,965.40 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Peyton Forte.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann
You miss 100 percent of the shots you never take. -Wayne Gretzky, b.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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com