May 6, 2025, Newsletter

Dear Friends,

Tangents:
May 6, 1527: Sack of Rome by the troops of Charles V.
May 6, 1954: Roger Bannister becomes the first person to run a mile in under 4 minutes, a feat that was previously thought impossible and has since been accomplished by an estimated 1,400 athletes.
May 6, 1955: West Germany joins NATO.
May 6, 1994: The Channel Tunnel linking France to the UK officially opens.

Sigmund Freud, founder of psychoanalysis, b. 1856.
Rabindranath Tagore, poet, b. 1861.
Orson Welles, actor/director, b. 1915.
George Clooney, actor, b. 1961.

Look, up in the sky!
A Soviet-era spacecraft that failed to reach Venus more than 50 years ago is due to crash back to Earth this week. Although much about the piece of space debris, called Cosmos 482 (also spelled Kosmos 482), is unknown, it “might well survive Earth atmosphere entry and hit the ground,” one astrophysicist said.

81-year-old ship sinks a tad too soon
A former World War II-era warship was supposed to go down in a blaze of glory during a live-fire exercise off the coast of the Philippines on Monday. Instead, the ex-USS Brattleboro met a different end.

Ri-Ri makes red carpet revelation
There were many dramatic appearances and striking outfits at this year’s Met Gala – and then there was Rihanna. The singer’s classy pinstripe Marc Jacobs ensemble with a polka dot cravat and oversized hat celebrated the night’s theme of Black style and dandyism. But her outfit went the extra mile by highlighting her newest feature: a baby bump.

Here birdie birdie birdie
Residents in Pinecrest, Florida say the loud and colorful peacock population has become a major nuisance. One exotic animal and avian veterinarian has come up with a unique solution.

“May the wind under your wings bear you where the sun sails and the moon walks”
Two massive eagle sculptures inspired by “The Hobbit” and “The Lord of the Rings” books and movies will be removed from the Wellington Airport in New Zealand this week. The 1.2-ton eagles have loomed over air travelers for more than a decade.

Digital ‘resurrection’ of the Titanic sheds light on fateful night the ship tore apart
A new documentary explores the tragic final night of the RMS Titanic with the most detailed digital reconstruction of the ship ever created. Read More.

1,800-year-old warhorse cemetery held remains of a beloved horse — and a man considered an ‘outsider’ to Roman society
A newly excavated horse cemetery in Germany dates to Roman times. Read More.

Earth may not have gotten its water how we thought, controversial meteorite study suggests
A meteorite found in Antarctica in 2012 suggests Earth may have formed with the materials needed to make water, a new study hints. Read More.

Shingles vaccine may directly guard against dementia, study hints
The lower incidence of dementia seen in adults who received the shingles vaccine is likely not just a correlation, scientists say, based on new results of an observational study. Read More.

People really can communicate with just their eyes, study finds
New research reveals how humans communicate through their gaze. Read More.

PHOTOS OF THE DAY

Ankara, Turkey
Flamingos walk through Lake Mogan as they stop at the wetlands during their migration
Photograph: Hamit Yalcin/Anadolu/Getty Images

Hong Kong, China
A boy performs a lion dance at the Piu Sik parade during celebrations of the Bun festival at Cheung Chau Island
Photograph: Bertha Wang/EPA

Kirnbach, Germany
Women wear the traditional Black Forest costume with the ‘Bollenhut’ pompom hat during a festival
Photograph: Steffen Schmidt/Reuters
Market Closes for May 6^th, 2025

International Markets

Bonds

Currencies

Commodities

Market Commentary:
When there’s nothing to do, do nothing. -James Tisch, b. 1953.
Canada
(MT Newswires)
The Toronto Stock Exchange closed with a modest gain on Tuesday as Canadian Prime Minister Mark Carney and U.S. President, Donald Trump staged a cordial meeting in Washington, even though there were no signs of a quick end to a trade war between their respective nations.
The S&P/TSX Composite Index closed up 21.20 points to close at 24,974.72.
Among sectors, Energy and Base Metals were the biggest gainers, up 1.13% and 1.12%, respectively.
Health Care, down 1.84%, was the biggest decliner.
Today’s meeting between Carney and Trump ended with no indication when a costly trade war between Canada and the United States will end.
When asked if there was anything Carney could say today that would lead the United States to lift tariffs on Canadian goods, Trump replied, “No.” When a reporter asked why not, Trump said, “It’s just the way it is.”
Also, Trump repeated that the United States does not need Canadian auto and key metals exports, at least during the televised portion of the Oval Office meeting.
Trump also reiterated that he feels it would be much better for Canada to be a state, within the United States, but Carney said Canada “is not for sale (and) won’t be for sale ever.”
While Carney said CUSMA, the free trade agreement between Canada, the United States, and Mexico, “is a basis for a broader negotiation,” Trump indicated he will not walk away from that deal, which was signed during his first term as President. “No, it’s fine. It’s there. It’s good,” the President said.
Of commodities, gold prices rose to a record late afternoon on Tuesday, on strong physical demand and as the dollar weakened.
Gold for June delivery was last seen up $110.00 to US$3.432.20, topping the April 21 record close of US$3.425.30.
West Texas Intermediate crude oil rebounded from a four-year low on Tuesday as traders bought the dip even as OPEC+’s weekend decision to add another outsized tranche of supply to the market in June threatens to push the market into surplus.
WTI oil for June delivery closed up $1.96 to settle at US$59.09 per barrel, rising off a February 2021 low, while July Brent crude was last seen up US$1.96 to US$62.19.
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite was little changed, with five of 11 sectors higher and six lower.
As of market close, 127 of 218 stocks fell, while 91 rose.
Shopify Inc. led the declines, falling 4.9%, while Centerra Gold Inc. increased 16%.
Markets at a Glance:
* S&P/TSX Index was little changed at 24,975
* Five of 11 sectors rose
** Materials gained, up 3.2%
** Information technology declined, down 2.5%
* S&P 500 Index fell 0.8% to 5,607
* Nasdaq 100 Index fell 0.9% to 19,791
* Crude oil rose 3.4% to $59/bbl
* Natgas fell 2.2% to $3.47/mmbtu
* Gold rose 3.3% to $3,431/oz
* Silver rose 3.1% to $33/oz
Advancers:
* Centerra Gold Inc. (CG CN) +16%: Centerra Gold 1Q Adjusted EPS 12C Vs. 14C Y/y
* Ero Copper Corp. (ERO CN) +11%: ERO Copper Raised to Outperform at National Bank
* Orla Mining Ltd. (OLA CN) +9.6%
* Lundin Gold Inc. (LUG CN) +9.5%: S&P/TSX Composite Gold Sub Industry GICS Index Rises 3.9%
* Aya Gold & Silver Inc. (AYA CN) +8.4%
Decliners:
* Shopify Inc. (SHOP CN) -4.9%: Shopify Rated New Outperform at BMO on Growth Potential
* Bausch Health Cos. (BHC CN) -4%
* Ces Energy Solutions Corp. (CEU CN) -3.4%
* Algoma Steel Group Inc. (ASTL CN) -3.1%: Steel Producer Algoma Cut to CCC+ by S&P on US Tariff Impacts
* Colliers International Group Inc. (CIGI CN) -3.1%: Colliers Falls on Real Estate Services Miss Despite Overall Beat
US
By Rita Nazareth
(Bloomberg) — Wall Street’s risk-off mode prevailed in the run-up to the Federal Reserve decision, with stocks falling and bonds rising as President Donald Trump’s tariff remarks failed to ease worries that his trade war will cause economic damage.
After almost wiping out losses, the S&P 500 closed with a drop of almost 1%.
Trump said he would prescribe tariff levels and trade concessions for partners looking to avoid higher duties, appearing to move away from the idea that he would engage in back-and-forth negotiations.
Trade jitters spurred gains in Treasuries, which also rose after a solid $42 billion sale of 10-year bonds.
Following a historic winning run for stocks, Goldman Sachs Group Inc. strategists say current valuations leave little room for the recent rally to continue.
For JPMorgan Chase & Co. strategists, US assets are “not a good place to hide.”
At HSBC, Max Kettner remains tactically cautious as “fundamentals remain dire.”
“Fading upside in a complacent equity market amid continued trade uncertainty, and huge downside economic risks which have yet to be adequately discounted,” said Michael Brown at Pepper stone.
“I also remain a dip buyer in gold, and a rally seller in the dollar.”
The S&P 500 fell 0.8%.
The Nasdaq 100 slid 0.9%.
The Dow Jones Industrial Average dropped 0.9%.
The yield on 10-year Treasuries fell four basis points to 4.31%.
The Bloomberg Dollar Spot Index slipped 0.3%.
The steep recovery in equities over the past two weeks is typical of bear-market rallies, and the erratic swings mean almost every investor will experience pain whichever direction the market suddenly moves.
“If the tariff announcements are reversed quickly with little lasting economic damage, this does suggest that the downside risks are limited.
Nonetheless, at current valuations, we also think the upside is limited,” Goldman Sachs strategist Peter Oppenheimer wrote.
Meantime, billionaire investor Paul Tudor Jones said he expects Trump to dial back China tariffs by 50% but said stock markets could hit new lows even if he does.
“You have Trump, who’s locked in on tariffs; you have the Fed, who’s locked in on not cutting rates,” said Jones, founder of macro hedge fund Tudor Investment Corp., speaking on CNBC Tuesday.
“That’s not good for the stock market.”
Bank of America Corp.’s individual-investor clients snapped up stocks for 21 consecutive weeks through last Friday, the longest buying streak in the firm’s data history going back to 2008, strategists led by Jill Carey Hall said Tuesday in a research note.
The cohort has been piling into US equities through a volatile start to 2025 marked by worries around Trump’s tariff regime, building positions in both exchange-traded funds and single stocks.
Eight of 11 S&P 500 sectors have net inflows by the group year-to-date, according to BofA data.
“This market reality suggests heightened short-term volatility is likely to persist but also presents opportunities for investors with longer-term perspectives to capitalize on short-term market dislocations,” said George Maris at Principal Asset Management.

Corporate Highlights:
* Palantir Technologies Inc. tumbled after its financial results and projections failed to live up to investors’ lofty expectations.
* Constellation Energy Corp. surged after it said it is on the verge of signing long-term deals to provide nuclear energy that could meet unrelenting demand to run data centers and factories.
* Ford Motor Co. suspended its full-year financial guidance and said Trump’s auto tariffs will take a toll on profit, joining rivals stung by volatile global trade policies.
* Hims & Hers Health Inc. reiterated its 2025 revenue forecast after posting better-than-expected sales for the first quarter, raising questions about the future as it shifts from making copycat weight-loss drugs to selling discounted versions of Novo Nordisk A/S’s blockbuster Wegovy.
* Archer-Daniels-Midland Co. said earnings this year will be at the lower end of its guidance as a difficult crop trading market is complicated by mounting trade and biofuel policy uncertainty.
* Marriott International Inc. lowered its estimates for a key measure of revenue growth, joining the ranks of hotel companies adjusting expectations for an uncertain economic moment.
* DoorDash Inc. is buying hospitality tech company Seven Rooms Inc. for $1.2 billion, hours after confirming its plans to acquire London-based delivery Deliveroo Plc, underscoring its appetite for aggressive global expansion.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.9%
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World Index fell 0.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.5% to $1.1375
* The British pound rose 0.6% to $1.3379
* The Japanese yen rose 0.9% to 142.41 per dollar
Cryptocurrencies
* Bitcoin rose 0.8% to $94,951.82
* Ether fell 1.4% to $1,784.48
Bonds
* The yield on 10-year Treasuries declined four basis points to 4.31%
* Germany’s 10-year yield advanced two basis points to 2.54%
* Britain’s 10-year yield was little changed at 4.51%
Commodities
* West Texas Intermediate crude rose 3.5% to $59.11 a barrel
* Spot gold rose 2.6% to $3,422.43 an ounce

–With assistance from Sujata Rao and John Viljoen.

Have a lovely evening everyone.

Be magnificent!
As ever,

Carolann
The noblest pleasure is the joy of understanding. –Leonardo da Vinci, 1452-1519.

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
www.carolannsteinhoff.com