May 7th,2025, Newsletter

Dear Friends,

Tangents:
May 7, 1867: Swedish chemist Alfred Nobel patents dynamite in England, revolutionizing construction and mining industries while also leading to the establishment of the Nobel Prizes in his will.
On May 7, 1945, Germany signed an unconditional surrender at Allied headquarters in Rheims, France, to take effect the following day, ending the European conflict of World War II. Go to article

May 7, 1824: Premiere of Beethoven’s Ninth Symphony.
Pyotr Tchaikovsky, composer, b. 1840.
Eva Peron, Argentina’s “Evita”, b.1919.
May 7, 1955: West European Union formed.

Failed Soviet spacecraft Kosmos 482 could crash to Earth this week — here’s where it might hit (map)
Where will the failed Soviet spacecraft Kosmos 482 land when it crashes back to Earth in the coming week? Most major cities are in the potential crash zone —
but the odds of a direct strike are extremely slim. Read More.

Archaeologists unearth tree-lined walkway that led to ancient Egyptian fortress in Sinai Desert
The ancient Egyptian fortress was in use around 2,000 years ago in the Sinai Desert. Read More.

In a first, physicists spot elusive ‘free-range’ atoms — confirming a century-old theory about quantum mechanics
Physicists have used a novel technique to observe individual atoms interacting in free space for the first time ever. The new technique confirms a century-old quantum mechanical theory. Read More.

US Air Force wants to develop smarter mini-drones powered by brain-inspired AI chips
Plans are underway to create new AI-powered drones that can fly for much longer than current designs. Read More.

Another type of Ozempic effect?
Weightwatchers has filed for bankruptcy protection. The 62-year-old dieting program has struggled with about $1.5 billion in debt, a 12% decline in members and an inability to keep pace with more convenient weight loss options like the GLP-1 drugs Ozempic and Wegovy.

No Triple Crown winner this year
Sovereignty, the 3-year-old thoroughbred who won the Kentucky Derby last weekend, will not compete in the Preakness Stakes. After suffering a scrape above the right front hoof during the race, the colt will instead focus on competing in the Belmont Stakes next month.

T. rex ancestry offers origin answers
A new study has determined how Tyrannosaurus rex’s ancestors arrived in North America around 70 million years ago. A team of international researchers used mathematical models that incorporated data from the existing fossil records, the T. rex family tree and climatic and environmental conditions.

Peering into the past and decoding its secrets
Researchers participating in The Vesuvius Challenge have had a breakthrough. Two graduate students from the University of Würzburg in Germany managed to decipher the title and author of PHerc. 172, a burned scroll that was buried under volcanic debris when Mount Vesuvius erupted in 79 AD, then digitally unwrapped nearly 2,000 years later.

From The Late Night Shows:
Prime Minister Mark Carney of Canada visited the White House on Tuesday, where he said that Canada was not and would never be for sale, despite President Trump’s avid interest in annexing it.
“Then Trump went back to browsing a world map like it’s Zillow,” Jimmy Fallon said.
“Yeah, Trump said if Canada became the 51st state, it would be a ‘wonderful marriage.’ And people — and people were, like, ‘How would he know?’” — JIMMY FALLON

“I think Donald Trump just got friend-zoned. Canada’s, like, ‘You have been such an amazing ally, but I really think we just work better as sovereign neighbors.’” — DESI LYDIC

“Poor Mark Carney had a hell of a job today. It was like an Ewok going to the meeting on the Death Star.” — JIMMY KIMMEL

“That’s true, he doesn’t take no for an answer. In fact, he was found liable for it in a court of law.” — JIMMY KIMMEL

PHOTOS OF THE DAY

Carshalton, UK
‘A buff-tailed bumblebee moving on.’
Photograph: Chris Playle

AlUla, Saudi Arabia‘
The Maraya is the largest mirrored building in the world. While blending into its surroundings with its reflective walls, it creates many strange split-screen panoramas.’
Photograph: Robert Boon

Skagit Valley, US
‘Snow geese warming up for the return trip to Wrangel Island, Russia, where they spend their summers, after wintering in the Skagit Valley, Washington.’
Photograph: Edmund Lowe
Market Closes for May 7th, 2025

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Investors should purchase stocks like they purchase groceries – not like they purchase perfume. –Ben Graham, 1894-1976.
Canada
(MT Newswires)
The Toronto Stock Exchange closed at the highest in five weeks on Wednesday amid easing trade tensions between Canada and the United States, at least for now, following the day-prior meeting of Prime Minister Mark Carney and President Donald Trump yesterday, in addition to news the United States and China are preparing for talks of their own on trade matters.
The S&P/TSX Composite Index closed up 186.46 points to 25,161.18, the highest since April 2.
Industrials and Information Technology led gains, up 1.25% and 1.5% respectively.
Limiting upside was a 2.0% decline in Base Metals.
Carney and Trump staged an amicable chat in the Oval Office on Tuesday.
While no deal on removing U.S. tariffs on Canadian goods was agreed to, the first meeting of the pair ended without rancor, an encouraging sign for future negotiations.
As well, the United States and China will meet in Switzerland on the weekend for trade talks of their own, raising hopes for an end to the tariff battles between the world’s two largest economies.
Economist David Rosenberg noted the U.S. Federal Reserve as expected today held the fed funds rate at its current target range of between 4.25-4.50% by unanimous decision.
But he said, the Fed “keeps prioritizing the uncertain picture despite the negative GDP print in the first quarter”.
Rosenberg said “the bar has been raised” for any near-term Fed rate cut even as the Bank of Canada is seen on the rate-cutting path.
There is ongoing concern that a widening interest-rate differential between this nation and the United States could weigh heavily on the Canadian dollar.
According to Rosenberg, the Fed “clearly brushed off” the mild contraction in U.S. first-quarter real GDP, pointing to swings in net exports, mostly the pre-tariff import surge, and sticking with the label “solid” to describe the overall economic backdrop.
“As bizarre as that sounds, consider it ‘cover’ for not signaling any rate cut coming,” he said.
Rosenberg noted the press statement was “short and terse once again,” but the new wrinkle was the addition of heightened risks around higher unemployment and higher inflation.
“It’s as if the latest flat reading in the core PCE deflator and the steady 4.2% unemployment rate never materialized.
But Powell and crew are staring into a bog of uncertainty and getting a tad more nervous over a future of mild stagflation.
The hidden message is that the bar for Fed easing has been raised a touch in the commentary, and any political pressure to lower rates will surely be resisted,” he said.
Investors, Rosenberg said, should note that there is a reference to “uncertainty about the economic outlook has increased further.”
This is a key message because higher uncertainty, even with all the trade ‘deals’ being bandied about, translates into market repricing towards more defensive positioning and wider risk premia across all asset classes, he added.
Among commodities, West Texas Intermediate crude oil traded lower on abundant supply, despite early support on hopes talks between China and the U.S. can end their trade war.
WTI oil for June delivery closed down $1.02 to US$58.07 per barrel, while July Brent crude settled down $1.03 to US$61.12.
Gold traded lower late afternoon as the dollar rose, and safe-haven demand slows after the United States and China agreed to hold trade talks this weekend.
Gold for June delivery was last seen down $25.50 to US$3,397.30 per ounce.
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose 0.7%, with eight of 11 sectors higher, led by information technology stocks.
As of market close, 127 of 218 stocks rose, while 88 fell.
Premium Brands Holdings Corp. led the advances, rising 9.4%,while Nova gold Resources Inc. decreased 6.7%.
Markets at a Glance:
* S&P/TSX Index rose 0.7% to 25,161
* Eight of 11 sectors rose
** Information technology gained, up 1.5%
** Communication services declined, down 0.8%
* Crude oil fell 1.9% to $58/bbl
* Natgas rose 4.7% to $3.63/mmbtu
* Gold fell 1.3% to $3,378/oz
* Silver fell 2.8% to $32/oz
Advancers:
* Premium Brands Holdings Corp. (PBH CN) +9.4%: Premium Brands 1Q Adjusted EPS Beats Estimates
* Spin Master Corp. (TOY CN) +6.7%: Spin Master Raised to Outperform at National Bank; PT C$29
* Stella-Jones Inc. (SJ CN) +4.7%: Stella-Jones Gains as 1Q EPS Beats Estimates, Guidance Kept (1)
* BRP Inc. (DOO CN) +4.5%
* NexGen Energy Ltd. (NXE CN) +4.4%
Decliners:
* Novagold Resources Inc. (NG CN) -6.7%: Novagold Resources Offers 43.5m Shares
* Iamgold Corp. (IMG CN) -5.7%: Iamgold Shares Fall as Gold Production, Sales Miss Estimates (1)
* Ivanhoe Mines Ltd. (IVN CN) -5.7%
* TransAlta Corp. (TA CN) -5.1%: TransAlta Shares Drop on ‘Softer’ First Quarter Adj. Ebitda (1)
* Endeavour Silver Corp. (EDR CN) -5%
US
By Rita Nazareth
(Bloomberg) — Assurances by Jerome Powell that the economy remains sound and the Federal Reserve won’t be forced into rash action by Donald Trump’s trade war bolstered markets, pushing up stocks and the dollar.
Equities were also aided by prospects for looser rules on semiconductor exports.
While warning that risks are growing of higher inflation and slowing growth, Powell calmed investors after the Federal Open Market Committee left interest rates unchanged.
The S&P 500 halted a two-day slide, with chipmakers leading the charge after Bloomberg News reported the Trump administration plans to rescind Biden-era curbs for the industry.
The dollar advanced against most major currencies. Benchmark 10-year yields fell.
With unemployment still low and demand steady, Fed officials have said they are comfortable keeping rates unchanged until they have a better understanding of where the economy is headed.
Powell repeated that sentiment Wednesday, adding the cost to waiting is low.
“The Fed is content to stand pat until there is economic data that compels them to change interest rates,” said Greg McBride at Bankrate.
“With inflation already elevated and expected to move higher, it will take evidence of a material downturn in the job market before the Fed resumes cutting interest rates.”
Price action Wednesday was especially muted when compared April 16, when stocks and the dollar tumbled after Powell first mentioned the growing tension between the Fed’s dual mandate of controlling price pressures and bolstering employment.
His comments then, coming amid a violent stretch in markets, were taken by traders as a vow to prioritize the fight against inflation even if it proved costly for investors.
The S&P 500 rose 0.4%.
The Nasdaq 100 added 0.4%.
The Dow Jones Industrial Average gained 0.7%.
The yield on 10-year Treasuries declined two basis points to 4.28%.
The Bloomberg Dollar Spot Index rose 0.5%.

Corporate Highlights:
* Apple Inc. is “actively looking at” revamping the Safari web browser on its devices to focus on AI-powered search engines, a seismic shift for the industry hastened by the potential end of a longtime partnership with Google.
* Walt Disney Co. reported fiscal second-quarter results that beat Wall Street estimates and raised its outlook for the full year, citing strong performances from theme parks and streaming TV.
* Advanced Micro Devices Inc., Nvidia Corp.’s closest rival in artificial intelligence processors, offered an upbeat revenue outlook for the current period, even while warning that US export curbs will take a bite out of sales.
* Super Micro Computer Inc. gave a sales forecast in the current period that fell short of estimates, disappointing investors after the server maker last week released lackluster preliminary quarterly results for the previous quarter.
* Uber Technologies Inc. reported weaker-than-expected quarterly gross bookings, citing lower US inbound travel that’s led to slower gains in it rideshare business.
* Marvell Technology Inc. cut the high end of its revenue forecast and postponed an investor day event, citing the “uncertain” economy.
* Rivian Automotive Inc. said full-year deliveries will decline more sharply than it anticipated just a month ago, citing risks Trump’s trade war will further dampen demand for pricey electric vehicles.
* CrowdStrike Holdings Inc. is cutting about 500 jobs, representing about 5% of its global workforce, as it works toward a goal of generating $10 billion in annual recurring revenue.
* The European Union will propose tariffs on Boeing Co. aircraft and US-made cars if talks with President Donald Trump’s administration fail to de-escalate a brewing trade conflict, according to people familiar with the deliberations.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.4%
* The Dow Jones Industrial Average rose 0.7%
* The MSCI World Index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.6% to $1.1306
* The British pound fell 0.5% to $1.3296
* The Japanese yen fell 1% to 143.81 per dollar
Cryptocurrencies
* Bitcoin rose 1.6% to $96,184.15
* Ether rose 1.2% to $1,796.47
Bonds
* The yield on 10-year Treasuries declined two basis points to 4.28%
* Germany’s 10-year yield declined seven basis points to 2.47%
* Britain’s 10-year yield declined five basis points to 4.46%
Commodities
* West Texas Intermediate crude fell 1.7% to $58.09 a barrel
* Spot gold fell 1.8% to $3,371.35 an ounce

–With assistance from Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
We don’t see things as they are, we see them as we are. –Anaïs Nin, 1903-1977.

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