November 13, 2024

Dear Friends,

Tangents: World Kindness Day today.

November 13, 1927: Holland Tunnel opened in New York City.
November 13, 1947: Edwin H. Land introduces the first Polaroid camera, capable of developing photographs instantly. This invention marks a major milestone in photography, changing the way people capture and share images.
November 13, 1980: Maritn Scorsese’s Raging Bull with Robert De Niro and Joe Pesci premieres in New York.
November 13, 2002: Saddam Hussein’s government agreed to the return of international weapons inspectors to Iraq.  Go to article 

Saint Augustine, b. 354
Whoopi Goldberg, actress, b. 1949.
Robert Louis Stevenson, author, b. 19850

Beaver Moon 2024: See the final ‘supermoon’ of the year rise next to the ‘Seven Sisters’
The year’s fourth and final supermoon shines next to the spectacular ‘Seven Sisters’ stars this week. Here’s how to see November’s full Beaver Moon rise. Read More.

Global carbon emissions reach new record high in 2024, with no end in sight, scientists say
There is a 50% chance that global warming will consistently exceed 1.5 degrees Celsius in the next six years, according to a new report.  Read More.

2,600-year-old Celtic wooden burial chamber of ‘outstanding scientific importance’ uncovered by archaeologists in Germany
The discovery of an impeccably preserved Celtic burial chamber in southern Germany is a “stroke of luck for archaeology,” scientists say.  Read More.

Pando, the world’s largest organism, may have been growing nonstop since the 1st humans left Africa, study suggests
The clonal quaking aspen known as Pando is between 16,000 and 80,000 years old.  Read More.

New ‘gold-plated’ superconductor could be the foundation for massively scaled-up quantum computers in the future
New superconducting material paves the way for the next stage in quantum computing. Read More.

‘Orbital’ wins 2024 Booker Prize
Looking for a stellar read? Samantha Harvey’s space-station novel “Orbital” won the Booker Prize for fiction on Tuesday.

Princess of Wales to host Christmas carol service at Westminster Abbey
The Princess of Wales will host her annual Christmas carol concert on December 6, with a focus on “how much we need each other, especially in the most difficult times of our lives,” Kensington Palace has announced.

Denzel Washington announces he will be in ‘Black Panther 3’
The esteemed Oscar-winning actor said his role in “Black Panther 3” will be one of his last before retirement.

PHOTOS OF THE DAY

New York, US
A plane flies overhead as the sun sets behind the Statue of Liberty
Photograph: Angela Weiss/AFP/Getty Images

Guwahati, India
A fisherman is silhouetted as he casts his net along the banks of the Brahmaputra river
Photograph: Biju Boro/AFP/Getty Images

​​​​​​​Atwood is a creative consultant on the ballet which has film design by Ravi Deepres. Karen Kain, artistic director for the National Ballet of Canada, praised McGregor for his ‘intelligent, visually stunning and highly physical work that continually pushes the boundaries of creativity’
Market Closes for November 13, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
☎️ On this day in 1878, the first telephones were installed on the trading floor of the New York Stock Exchange, just over two years after Alexander Graham Bell invented the device.
Canada
By Bloomberg Automation (Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.3%, or 66.01 to 24,989.02 in Toronto.
Shopify Inc. contributed the most to the index gain, increasing 5.9%.
CAE Inc. had the largest increase, rising 11.9%.
Today, 88 of 220 shares rose, while 128 fell; 4 of 11 sectors were higher, led by information technology stocks.
Insights
* This year, the index rose 19%, heading for the best year since 2021
* The index advanced 27% in the past 52 weeks. The MSCI AC Americas Index gained 35% in the same period
* The S&P/TSX Composite is 0.1% below its 52-week high on Nov. 12, 2024 and 27.5% above its low on Nov. 13, 2023
* The S&P/TSX Composite is up 1.4% in the past 5 days and rose 2.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.3 on a trailing basis and 17.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.94t
* 30-day price volatility fell to 8.42% compared with 8.45% in the previous session and the average of 7.62% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 89.8589| 3.6| 9/1
Energy | 22.7435| 0.5| 20/18
Industrials | 3.8178| 0.1| 14/13
Consumer Discretionary | 0.9848| 0.1| 6/5
Health Care | -0.5353| -0.7| 2/2
Real Estate | -1.3439| -0.3| 7/13
Consumer Staples | -1.5394| -0.2| 4/6
Utilities | -2.3665| -0.3| 7/8
Communication Services | -3.2521| -0.5| 1/4
Financials | -4.6499| -0.1| 10/17
Materials | -37.7138| -1.3| 8/41
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 75.8100| 5.9| 67.9| 56.3
Suncor | 19.9400| 4.2| 94.0| 30.5
Enbridge | 11.5900| 1.3| 40.3| 24.8
Canadian Natural Resources | -5.5150| -0.8| 29.9| 7.6
Teck Resources | -6.0000| -2.9| 50.7| 13.1
Power of Canada | -7.0670| -4.0| 14.0| 18.8
US
By Rita Nazareth
(Bloomberg) — Stocks wavered as speculation the market has run too far after the US election offset bets the Federal Reserve will keep cutting rates.
Equities lost steam in the final stretch of New York trading, with the S&P 500 almost erasing an advance partly fueled by in-line inflation data. In late hours, Cisco Systems Inc. gave a strong revenue forecast.
Shorter-dated Treasuries outperformed, with the yield on two-year notes dropping from the
highest since July. Swap traders boosted to about 80% the probability that the Fed will cuts rates again on Dec. 18.
The dollar held at a two-year high.
Bitcoin rose to around $90,000.
Trump Wins Republican Trifecta as GOP Retains House Majority A consumer price index that matched estimates brought a certain degree of relief to traders fearing that a hotter print that could hinder US policy easing.
Minneapolis Fed President Neel Kashkari said that based on the headline numbers, he’s confident inflation “is headed in the right direction.”
He spoke on Bloomberg TV just minutes after the release, emphasizing he hadn’t yet been able to look at the data in detail.
“Overall, it was a remarkably consensus print that leaves a December cut as the most likely outcome,” said Ian Lyngen at BMO Capital Markets.
The S&P 500 was little changed.
The Nasdaq 100 fell 0.2%.
The Dow Jones Industrial Average rose 0.1%.
Treasury 10-year yields advanced two basis points to 4.45%.
The Bloomberg Dollar Spot Index climbed 0.4%.
“A hotter-than-expected inflation number could have convinced the Fed to stand pat at its next meeting,” said Seema Shah at Principal Asset Management. “A December cut is still in the cards.”
Despite the market relief with Wednesday’s CPI report, the latest figures also underscore the slow and frustrating nature of the battle against inflation, which has often moved sideways— sometimes for months at a time — on its broader path down.
“The in-line CPI print shows that while substantial progress has been made in the fight against elevated inflation, the ‘last mile’ is proving more challenging,” said Josh Jamner at ClearBridge Investments.
“Underlying inflationary pressures remain on a pace that is modestly above the Fed’s 2% target. With inflation holding steady, the market narrative should not see a significant shift as a result of today’s data.”
It’s a “business-as-usual print” for the Fed, according to Bank of America Corp.’s Stephen Juneau, Meghan Swiber and Alex Cohen.
“Inflation is moving sideways on a y/y basis, but there is nothing in today’s report that would alarm the Fed,” they said.
“Therefore, a 25 basis-point cut in December firmly remains our base case.”
At Citigroup Inc., economists maintained their view that the Fed will cut rates by 50 basis points in December after the CPI data.
“While details remain volatile and not quite ‘normal,’ easing wage pressures, falling short-term inflation expectations, and high rates continuing to weigh on housing demand and prices should leave Fed officials comfortable that the path of inflation is slowing,” wrote Citi’s Veronica Clark and Andrew Hollenhorst.
To Preston Caldwell at Morningstar, while an outside possibility of a “skip” still exists, he continues to believe the central bank will most likely cut rates next month.
After slashing rates last week, Fed Chair Jerome Powell worked hard not to offer forward guidance on where rates could go from here, keeping his options open for the December meeting and beyond.
He stressed that officials can take their time to lower rates because the economy is strong.
He also said that policy is still restrictive, even after the November cut, and that policymakers are in the process of bringing rates to neutral levels.
“Chair Powell reinforced that the Fed believes its policy stance is still restrictive, and that they remain on a rate- cutting trajectory,” said Lauren Goodwin at New York Life Investments.
“We agree with current market expectations around Fed pricing.”
With inflation still stubbornly above the Fed’s 2% goal, the Fed may have only one rate cut left in December before taking a pause, according to Skyler Weinand at Regan Capital.
“The incredible move in the stock market post-election has effectively eased financial conditions,” he said. “This easing, combined with incoming fiscal stimulus, may warrant a pause on rate cuts by the Fed in the near future to allow the dust to settle and to process more incoming data.”
The Fed cutting short-term rates along with future fiscal stimulus may both ignite inflation again and provide cause for longer term interest rates to rise, he said, adding that he sees 10-year Treasury yields climbing to 5% in 2025.
In fact, a recent survey conducted by 22V Research before the CPI release shows the share of investors expecting a recession has fallen while the percentage of those that believe financial conditions need to tighten has increased to the highest since June 2024.
Ellen Zentner at Morgan Stanley Wealth Management remarks that markets are already weighing the possibility that the Fed will cut fewer times in 2025 than previously thought, and that they may hit the pause button as early as January.
“The sticky components of inflation continue to ease, giving the Fed some leeway to cut rates next month but they will most likely pause in January,” said Jeffrey Roach at LPL Financial.
“The strength of some cohorts of the consumer is keeping upward pressure on prices as consumer spending hasn’t slowed yet. Stronger-than-expected economic growth is likely keeping bond yields elevated.”
While investors shrugged off the latest news on US inflation, they seem increasingly concerned about its longer-term outlook, according to Diana Iovanel at Capital Economics.
“We share their view and expect Treasury yields to rise a bit further still,” she said.
At Goldman Sachs Asset Management, Lindsay Rosner says that after a run of unseasonably hot data, the latest CPI cools fears of an imminent slowdown in the pace of rate cuts.
“Still, with uncertainty over fiscal and trade policies high there is a risk that the Fed may opt to slow the pace of easing as the New Year chill sets in,” she noted.
“After the massive rally we’ve seen in stocks, investors are looking for any sort of excuse that can usher in a pullback,” said Bret Kenwell at eToro. “A batch of in-line inflation data isn’t likely to do the trick.
Markets resolved higher following the election, instilling a “buy the dip” mentality on Wall Street, Kenwell said.
If the market were to sell off in the short term, the pullbacks are likely to be shallow as fund managers buy the dip and look to chase performance into year-end, Kenwell concluded.
“It’s time to stop worrying about the Fed and inflation,” said David Russell at TradeStation.
“Stocks have been on autopilot since the election and today’s numbers do nothing to hurt the trend. December is still in play for a cut.”
In fact, the options market is more concerned about a potentially big move in the S&P 500 next week following Nvidia Corp.’s earnings report than it was about Wednesday’s figures on consumer prices, Citigroup Inc. analysts say.
Traders are betting on a 0.9% move for the US equity benchmark in either direction on Nov. 21 — the session after the giant chipmaker delivers results following the closing bell next Wednesday.
Over the next month, Nvidia is now priced as the largest event for the stock market. Such near-term concerns about macro data often take a back seat when it comes to technology, where the focus is on the next big AI breakthrough.

Corporate Highlights:
* Advanced Micro Devices Inc. is shedding about a thousand jobs as part of an effort to refocus on newer markets like artificial intelligence chips.
* Cava Group Inc. raised its full-year outlook for a third straight quarter and posted quarterly sales that beat market expectations, the latest example of a fast-casual company winning over diners while the rest of the industry struggles.
* Spirit Airlines Inc. is closing in on a deal with creditors that would restructure its crushing debt load in bankruptcy court after discussions for a tie-up with rival Frontier Group Holdings Inc. fell apart.
* Mastercard Inc. projected slower annual net revenue growth for the 2025 to 2027 period, it said Wednesday ahead of its investor day.
* Spotify Technology SA reported third-quarter growth in subscribers and profit margins, saying lower marketing and personnel costs helped overcome a tough climate for advertising.
* Instacart posted strong revenue in the third quarter, a sign of resilience in its core grocery delivery business. However, it forecast adjusted earnings in the current period that fell short of analysts’ expectations.
* Charter Communications Inc. agreed to buy Liberty Broadband Corp. in an all-stock transaction.
* Volkswagen AG raised investment plans in Rivian Automotive Inc. by $800 million, signaling its commitment to the US partner even as electric-vehicle demand softens and the incoming Trump administration threatens to curtail supportive policies.
* Wonder Group Inc. is buying Grubhub from Just Eat Takeaway.com NV for about $650 million, acquiring the restaurant delivery service at a steep discount to the $7.3 billion price tag it commanded during the early days of the Covid pandemic.

Key events this week:
* Eurozone GDP, Thursday
* US PPI, jobless claims, Thursday
* Fed speakers include Jerome Powell, John Williams and Adriana Kugler, Thursday
* China retail sales, industrial production, Friday
* US retail sales, Empire manufacturing, industrial production, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 fell 0.2%
* The Dow Jones Industrial Average rose 0.1%
* The MSCI World Index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.6% to $1.0563
* The British pound fell 0.3% to $1.2705
* The Japanese yen fell 0.6% to 155.58 per dollar
Cryptocurrencies
* Bitcoin rose 1.7% to $89,787.51
* Ether fell 3.3% to $3,173.96
Bonds
* The yield on 10-year Treasuries advanced two basis points to 4.45%
* Germany’s 10-year yield advanced three basis points to 2.39%
* Britain’s 10-year yield advanced two basis points to 4.52%
Commodities
* West Texas Intermediate crude fell 0.1% to $68.03 a barrel
* Spot gold fell 1% to $2,573.60 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,

Carolann
A person should always develop his ability to do goodness.  Make yourself better; this should be every person’s goal. –Immanuel Kant, 1724-1804.

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
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