May 9, 2022 Newsletter
May 9, 1974: A concert in Cambridge, Mass., prompted rock critic Jon Landau to write, “I saw rock and roll future and it’s name is Bruce Springsteen.” Go to article »
Billy Joel, singer/songwriter, b. 1949.
What Trader Joe saw that everyone else missed. Check out the brief origin story of the popular grocery store empire.
‘Doctor Strange’ conjures big box office opening for Marvel. Don’t worry, no spoilers here. Just big news that the film has already made $450 million worldwide in a few days.
HBO released its latest trailer for the ‘Game of Thrones’ prequel. It’s the trailer that fans have waited so patiently for… House Targaryen is back and coming to your screens in August.
The newish Dutch city of Almere could be the city of the future.
Archaeologists have uncovered the ruins of a dwelling that was built up to 800 years ago during the Aztec Empire in the Centro neighborhood of Mexico City, Mexico, during works to modernize the area.
The centuries-old abode was discovered by archaeologists and construction workers ahead of an initiative to update electrical power substations. Full Story: Live Science (5/6)
You can watch a lunar eclipse turn the Flower Moon red on May 15 or 16, depending on your location, and it’s even broadcast online in case you can’t see it in person.
This is going to be the first of only two lunar eclipses in 2022, and the only one visible to people in North America this year, so be sure not to miss what happens when the new moon passes
into Earth’s shadow. Full Story: Live Science (5/9)
PHOTOS OF THE DAY
Children take part in the Royal May Day procession. The festival made its return after a two-year break owing to the Covid-19 pandemic, the only time it has been missed since its start in 1864, other than the two world wars. Over 600 children dress in colourful costumes and characters as they walk through the town. The Knutsford event is one of the most famous May Day events still celebrated in the UK
CREDIT: Martin Rickett/PA
Fans enjoy themselves in the paddock area at the Kentucky Derby at Churchill Downs
CREDIT: Andy Lyons/Getty Images
A woman arrives at a registration and processing area for internally displaced people in Zaporizhzhia after leaving Russian occupied territory.
CREDIT: Dimitar Dilkoff/AFP/Getty Images
Market Closes for May 9th, 2022
|Bonds||% Yield||Previous % Yield|
10 Year Bond
10 Year Bond
30 Year Bond
|WTI Crude Future||103.09||109.77|
On this day in 1894, Benjamin Grossbaum was born in London, to a homemaker and an importer of Austrian china. His family later changed its surname to Graham, and he became the founder of securities analysis and value investing.
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 3.1%, or 633.6 to 19,999.69 in Toronto.
The move was the biggest since falling 4.1% on June 11, 2020.
Today, energy stocks led the market lower, as 10 of 11 sectors lost; 211 of 239 shares fell, while 26 rose.
Nutrien Ltd. contributed the most to the index decline, decreasing 9.6%. Bausch Health Cos. had the largest drop, falling 18.9%.
* The index advanced 2.7% in the past 52 weeks. The MSCI AC Americas Index lost 7.3% in the same period
* The S&P/TSX Composite is 10% below its 52-week high on April 5, 2022 and 4.9% above its low on May 13, 2021
* The S&P/TSX Composite is down 3.3% in the past 5 days and fell 8.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.9 on a trailing basis and 12.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.3t
* 30-day price volatility rose to 18.05% compared with 15.84% in the previous session and the average of 12.69% over the past month
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
* Energy | -209.2148| -5.5| 0/34
* Materials | -154.4281| -5.6| 3/47
* Financials | -81.4684| -1.3| 2/26
* Industrials | -74.4052| -3.2| 4/26
* Information Technology| -55.1094| -5.0| 1/15
* Communication Services| -17.6050| -1.6| 2/5
* Real Estate | -16.1450| -2.9| 0/23
* Consumer Discretionary| -15.2800| -2.3| 1/13
* Health Care | -10.6775| -9.4| 1/7
* Utilities | -2.5794| -0.3| 6/10
* Consumer Staples | 3.3173| 0.4| 6/5
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
* Nutrien | -48.6200| -9.6| 15.0| 27.1
* Canadian Natural Resources | -47.1900| -7.2| -22.3| 42.5
* Shopify | -34.2300| -9.0| 22.1| -74.6
* BCE | 2.9370| 0.7| 39.8| 6.3
* Fortis | 3.3620| 1.6| 25.9| 4.8
* Loblaw | 4.9660| 4.0| 42.8| 12.1
By Rita Nazareth
(Bloomberg) — Stocks tumbled to a 13-month low in a widespread selloff amid concern about the Federal Reserve’s ability to tame inflationary spirals without throwing the economy into a recession.
The slide in the S&P 500 topped 3%, while the Treasury curve steepened, with the gap between five- and 30-year rates hitting the widest since March.
Investors are increasingly worried about the limits to Fed policy at a time when supply-chain disruptions pose a significant threat to inflation amid a ravaging war in Ukraine and China’s Covid lockdowns.
Data Monday showed U.S. consumers project prices in three years to be higher compared with a month ago — a troubling sign for officials trying to keep longer-term expectations anchored.
Pandemic-era stars bore the brunt of the selling, with Cathie Wood’s flagship exchange-traded fund sinking about 10% and an ETF tracking newly public companies down the most since the onset of the pandemic.
Bitcoin slipped below $32,000, falling more than 50% from its all-time high.
The rout also spread to energy producers, easily the market’s strongest sector in 2022.
The group plunged over 8% as crude slid.
Big tech was not spared, with the likes of Tesla Inc., Amazon.com Inc. and Nvidia Corp. off by at least 5%.
The Cboe Volatility Index spiked to its highest in two months.
Traders will be closely watching a host of central bank speakers this week after Chair Jerome Powell on Wednesday played down the option of 75 basis-point rate hike.
Fed Bank of Atlanta President Raphael Bostic told Bloomberg Television he favors policy makers continuing to raise rates by half-point increments rather than doing anything larger.
In a later interview with Reuters broadcast on Twitter, Bostic added that while he saw low odds for a 75-basis-point hike in the next several months, he’s “not taking anything off the table.”
The April consumer-price index report on Wednesday is the highlight of an otherwise quiet week for economic releases.
Inflation is projected to have moderated on both a monthly and annual basis, partly reflecting a dip in gasoline prices that have since picked back up.
While inflation likely peaked in March at 8.5%, the hottest in four decades, price pressures are expected to remain elevated, keeping Fed officials on track to steadily lift borrowing costs in the months ahead.
High inflation readings, a slowing economy and aggressive tightening by the Fed to rein in soaring prices have weighed on risk appetite and valuations.
Even if an outright recession is avoided, the outlook for U.S. stocks isn’t particularly bright, according to Goldman Sachs Group Inc. strategists.
“Swings will remain large until the path of inflation is clarified,” strategists led by David Kostin wrote in a note to clients, adding that “tightening financial conditions and poor market liquidity make it difficult to argue for a short-term
rally similar in size to the one in late March.”
* “The big question is if inflation can head below 3% without the Fed causing a recession,” wrote Dennis DeBusschere, founder of 22V Research. “Until that question is answered, financial conditions are biased tighter, and markets will struggle despite oversold conditions.”
* “Sentiment is bearish, but not at capitulation levels, market liquidity is poor which leads to greater volatility, and investors are pulling money out of equity and bond funds rather than putting it in,” wrote Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management. “These technical factors can dominate economic news over a few weeks or couple of months, and it will probably take that long for inflation improvement to become apparent.”
Here are key events to watch this week:
* Cleveland Fed President Loretta Mester, Atlanta Fed President Raphael Bostic, New York Fed President John Williams, Fed Governor Christopher Waller speak, Tuesday
* Atlanta Fed President Raphael Bostic speaks, Wednesday
* U.S. CPI, Wednesday
* EIA crude oil inventory report, Wednesday
* San Francisco Fed President Mary Daly speaks, Thursday
* U.S. PPI, initial jobless claims, Thursday
* University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
* The S&P 500 fell 3.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 4%
* The Dow Jones Industrial Average fell 2%
* The MSCI World index fell 3.1%
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro was little changed at $1.0559
* The British pound fell 0.1% to $1.2333
* The Japanese yen rose 0.3% to 130.22 per dollar
* The yield on 10-year Treasuries declined 10 basis points to 3.03%
* Germany’s 10-year yield declined four basis points to 1.09%
* Britain’s 10-year yield declined four basis points to 1.96%
* West Texas Intermediate crude fell 6.8% to $102.28 a barrel
* Gold futures fell 1.6% to $1,852.70 an ounce
–With assistance from Sunil Jagtiani, Srinivasan Sivabalan, John Viljoen and Vildana Hajric.
Have a lovely evening
The superior man, in dealing with the world, is not for anything or against anything. He follows righteousness as the standard. -Confucius, 551 BC-479 BC.
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
Toll Free: 1.877.430.5895