November 26, 2024, Newsletter

Dear Friends,

Tangents:
Day of Covenant, Baha’i.

November 26, 1917: Formation of the National Hockey League (NHL).  The NHL was established in Montreal, marking the beginning of one of the major professional ice hockey leagues.
November 26, 1963: The Daily News prints  a cover photo of John F. Kennedy Jr. saluting his father’s casket.

2008: Terrorists launched commando-style attacks on two luxury hotels, a Jewish center and a crowded train station in Mumbai, India, killing 166 people.  Go to article 

John Harvard, Harvard University founder, b. 1607.
Charles M. Schultz, creator of “Peanuts”, b. 1922.

Dictionary.com announces 2024 word of the year — and it isn’t ‘brat’
A word that went viral over the summer has been named Dictionary.com’s 2024 word of the year. Take a guess!

Battle of the brothers
Baltimore Ravens head coach John Harbaugh beat his brother and Los Angeles Chargers head coach Jim Harbaugh on Monday Night Football.

China’s hottest new tourist attraction is 5,000 feet in the air
Don’t … look … down. Brave explorers are climbing a structure in Zhangjiajie Nature Park called Tianti, also known as the “Sky Ladder.”

‘It is a treasure’: Wreck off Kenyan coast may be from Vasco da Gama’s final voyage
Researchers think the wreck was part of a flotilla that accompanied the Portuguese explorer’s final voyage. Read More.

Key Atlantic current is weakening much faster than scientists had predicted
A current key to stabilizing climates across the Atlantic and beyond could be one-third weaker by 2040, a new study has revealed. Read More.

Scientists detect the most powerful cosmic rays ever — and their unknown source could be close to Earth
New research reports the most powerful cosmic rays ever detected. Because the rays lose energy as they travel through space, their detection at high energies means they are likely coming from sources relatively close to Earth. Read More.

Earth’s ‘2nd moon’ escapes our planet’s orbit — will it ever return?
The mini-moon 2024 PT5, which has been orbiting Earth for two months and is likely a chunk of the moon, will now drift away from our planet in an orbit around the sun. Read More.
PHOTOS OF THE DAY

London, England
Chromointerferent Environment, 1974-2019 by Carlos Cruz-Diez at Tate Modern’s major new exhibition Electric Dreams: Art and Technology Before the Internet. The show celebrates the early innovators of optical, kinetic, programmed and digital art who pioneered a new era of immersive sensory installations and automatically-generated works
Photograph: David Levene/The Guardian

Kyiv, Ukraine
People walk among snow-covered trees on a frosty morning
Photograph: Gleb Garanich/Reuter

Rongshui Miao autonomous county, China
People in traditional costumes participate in the Lusheng folk musical festival
Photograph: Xinhua/Rex/Shutterstock
Market Closes for November 26, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1982, a change to the Securities and Exchange Commission rulebook took effect, creating a “safe harbor” for companies to repurchase shares without falling foul of restrictions on market manipulation. The new rule, known as 10b-18, would help pave the way for an explosion in stock buybacks in the following decades
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite declined slightly to 25,405.14 in Toronto.
Canadian Pacific Kansas City Ltd. contributed the most to the index decline, decreasing 2.9%.
Bombardier Inc. had the largest drop, falling 9.3%.
Today, 134 of 219 shares fell, while 81 rose; 6 of 11 sectors were lower, led by energy stocks.
Insights
* This year, the index rose 21%, heading for the best year since 2021
* This month, the index rose 5.2%
* The index advanced 26% in the past 52 weeks. The MSCI AC Americas Index gained 32% in the same period
* The S&P/TSX Composite is 0.5% below its 52-week high on Nov. 25, 2024 and 27.5% above its low on Nov. 28, 2023
* The S&P/TSX Composite is up 1.6% in the past 5 days and rose 3.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.3 on a trailing basis and 17.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.7% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$4t
* 30-day price volatility fell to 8.86% compared with 8.92% in the previous session and the average of 8.10% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -49.2948| -1.1| 7/33
Industrials | -31.8556| -1.0| 12/15
Real Estate | -8.4150| -1.6| 0/20
Consumer Discretionary | -7.9952| -1.0| 1/10
Communication Services | -6.0996| -0.9| 0/5
Utilities | -0.8047| -0.1| 8/7
Health Care | 0.5661| 0.8| 2/2
Consumer Staples | 8.7453| 0.9| 4/6
Materials | 16.1252| 0.5| 24/25
Information Technology | 34.1819| 1.3| 6/3
Financials | 39.6351| 0.5| 17/8
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian Pacific Kansas | -20.6700| -2.9| 67.9| -0.2
Canadian Natural Resources | -13.2800| -1.9| 253.7| 7.6
Suncor | -11.5800| -2.3| 199.6| 31.0
Brookfield Corp | 10.2000| 1.2| 0.9| 58.9
Agnico Eagle Mines Ltd | 14.2600| 3.6| -12.2| 62.9
Shopify | 20.4500| 1.6| 67.5| 52.8
US
By Rita Nazareth
(Bloomberg) — Stocks closed at all-time highs as investors looked past Donald Trump’s tariff plan, with geopolitical risks abating after Israel and Hezbollah reached a cease-fire agreement.
Equities extended gains into a seventh consecutive session— the longest winning streak for the S&P 500 since mid-September.
The gauge notched its 52nd record this year.
Microsoft Corp. drove software companies higher amid the group’s lower susceptibility to tariff risks.
While automakers like General Motors Corp. and Ford Motor Co. were hit by Trump’s plan due to their exposure to Mexico and China, a slide in equity volatility showed calm prevailed.
President-elect Trump vowed to place an extra 10% tariffs on Chinese imports and 25% levies on all products from Mexico and Canada.
The measures are needed to clamp down on migrants and illegal drugs flowing across the US border, he said.
“We still see tariffs as more strategizing and think the bark will be worse than the bite,” said Andrew Brenner at NatAlliance Securities.
The S&P 500 rose 0.6%.
The Nasdaq 100 climbed 0.6%.
The Dow Jones Industrial Average added 0.3%.
US 10-year yields advanced two basis points to 4.30%.
A dollar gauge gained 0.2%.
The Mexican peso and Canadian dollar slid.
To Dennis DeBusschere at 22V Research, Trump linking tariffs to drugs and immigration, rather than trade policy and economics signaled to investors that this announcement is a negotiating tactic, not a policy tool.
“It was Trump ‘following through’ on his campaign promises– nothing more, nothing less – and my sense is that investors welcomed the move,” said Kenny Polcari at SlateStone Wealth.
While stocks gained, the bond market response was mild following its second-biggest advance this year.
At BMO Capital Markets, Ian Lyngen says that perhaps the muted response in Treasuries is because not only had the market already priced in a renewed emphasis on “tariffs as trade policy,” but it’s also an acknowledgment that increases in levies have a one-time impact on realized inflation.
Stocks resumed their post-election upward trajectory last week and the S&P 500 has since posted moderate gains.
Overall, turnover however has been relatively muted in both cash and futures trading ahead of the Thanksgiving holiday on Thursday.
The S&P 500 has surged more than 25% this year, on track for a second year of returns above 20% — a run that’s occurred just four times in the past 100 years.
Deutsche Bank AG’s Bankim Chadha says the benchmark will hit 7,000 points by the end of next year, making him the most optimistic among Wall Street strategists predicting further gains for US stocks.
“We see steady robust momentum continuing into 2025, with earnings-per-share growth in the low double digits,” Chadha and his team wrote in a note dated Monday.
Meantime, Bank of America Corp.’s Savita Subramanian is counting on another year of double-digit gains for the S&P 500 in 2025 — but says even better opportunities are present in individual stocks outside the benchmark.
Her 2025 year-end target for the gauge is 6,666, and she recommends companies with healthy cash return prospects and tied to US economy.
The strategist is overweight financials, consumer discretionary, materials, real estate and utilities.
At Goldman Sachs Group Inc., strategists are advising investors to keep their money in US equities, but to adjust their holdings to mitigate the fact that close to half of the S&P 500’s rise in 2024 was due to the so-called “Magnificent Seven” big-tech stocks.
The high concentration and valuation of the US stock market is a reason to implement diversification across strategies and regions, says Goldman’s Peter Oppenheimer.
He adds that a overweight on US stocks still makes sense, however, given solid economic and earnings expectations for 2025.

Corporate Highlights:
* Amgen Inc. tumbled after its experimental obesity shot failed to significantly outperform rivals and showed a high rate of gastrointestinal side effects.
* Eli Lilly & Co. rose as the Biden administration is proposing a rule that would require the US government to cover weight-loss drugs, potentially expanding access for millions of Americans with obesity and creating a huge new medical bill for President- elect Donald Trump.
* Kohl’s Corp. shares plunged to the lowest level since 2020 after the company cut its full-year sales outlook, signaling that its turnaround efforts are fizzling in an increasingly difficult retail environment.
* Dick’s Sporting Goods Inc. raised its full-year sales outlook after posting strong results in the back-to-school season ahead of the holidays, spurred by high demand for sports gear.
* Best Buy Co. cut its full-year guidance on sluggish demand for electronics and appliances, a sign of trouble for the retailer looking to pull off a turnaround.
* JM Smucker Co. raised its earnings guidance as its popular Uncrustables frozen sandwiches outperformed expectations, offsetting softness at the recently acquired Hostess brand.
* Qualcomm Inc.’s interest in pursuing an acquisition of Intel Corp. has cooled, according to people familiar with the matter, upending what would have likely been one of the largest technology deals of all time.
* Goldman Sachs Group Inc. and Morgan Stanley shares are offering an “unattractive risk reward profile” in the wake of the recent rally in bank stocks, HSBC analysts said.
* Rivian Automotive Inc. won preliminary approval for a $6.6 billion federal loan that would support the construction of an electric-vehicle factory the company put off building earlier this year to save money.
* Zoom Communications Inc. sank after it gave a revenue outlook that disappointed investors expecting a bigger boost from the company’s expanded suite of products.

Key events this week:
* US PCE, initial jobless claims, GDP, Wednesday
* Eurozone consumer confidence, Thursday
* US Thanksgiving holiday. Markets closed, Thursday
* Eurozone CPI, Friday
* ECB releases consumer expectations survey for October, Friday
* “Black Friday,” the traditional start of the US holiday shopping rush

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.6% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.6%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World Index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.1% to $1.0482
* The British pound was little changed at $1.2559
* The Japanese yen rose 0.8% to 153.06 per dollar
Cryptocurrencies
* Bitcoin fell 2.9% to $91,004.89
* Ether fell 3.4% to $3,321.02
Bonds
* The yield on 10-year Treasuries advanced two basis points to 4.30%
* Germany’s 10-year yield declined two basis points to 2.19%
* Britain’s 10-year yield advanced one basis point to 4.35%
Commodities
* West Texas Intermediate crude fell 0.4% to $68.66 a barrel
* Spot gold rose 0.3% to $2,631.80 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!
As ever,
If you have the words, there’s always a chance that you’ll find the way. -Seamus Heaney, 1939-2013.

Carolann

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