November 27, 2024 Newsletter

Dear Friends,

Tangents:
November 27, 1826: John Walker invents the friction match in England.  This revolutionised fire-making, making it safer and more convenient for everyday use.

November 27, 1924: The NY Times reports “a retinue of clowns , freaks, animals, and floats” at the first Macy’s Thanksgiving Day Parade.

James Agee, poet, b. 1909.
Gail Sheehy, writer, b. 1937.
Bruce Lee, actor, b. 1940.
Jimi Hendrix, guitarist, tgtbrf1942.

New CRISPR system pauses genes, rather than turning them off permanently
Researchers in Lithuania present the molecular structure of a new, more-versatile CRISPR system for gene editing. Read More.

‘Exercise juice’ released by muscles helps nerves grow, study finds
A new study in mouse cells hints that substances released by muscles can help nearby nerves grow. Read More,

Ancient Egypt quiz: Test your smarts about pyramids, hieroglyphs and King Tut
For over 3,000 years, ancient Egypt was one of the most powerful civilizations on Earth, with an empire stretching across half a dozen modern-day countries. How much do you know about this iconic culture? Take our quiz to find out.  Full Story: Live Science (11/26)

‘Treated as something dangerous and vicious’: See stunning reconstruction of ‘vampire’ buried with a blade over her neck
A new reconstruction of a woman from a 17th-century “vampire” burial reveals a young-but-sickly woman whom villagers feared so much they buried her under a blade and padlock. Read More.

Wildlife Photographer of the Year People’s Choice finalists announced
A prowling puma, a hunting polar bear cub and a ghostly barn owl are among the shortlisted images for the Wildlife Photographer of the Year People’s Choice Award 2024.

‘Lilo & Stitch’ live-action movie to crash into theaters next summer
Disney released a new teaser trailer for the upcoming live-action version of “Lilo & Stitch.” The film will hit theaters in the summer of 2025.

Huawei’s new Chinese smartphone takes on Apple and Android
Huawei unveiled a new flagship phone boasting entirely homegrown software that aims to give users an alternative to Google’s Android or Apple’s iOS.

Former CEO says don’t obsess over your career path
Indra Nooyi, highly regarded in her role as PepsiCo’s CEO from 2006-2018, shares some career advice in this short video

PHOTOS OF THE DAY

Kastamonu, Turkey
The Kure mountains, in the Black Sea region, covered with snow
Photograph: Ozgur Alantor/Anadolu/Getty Images

Norfolk, UK
A field of colourful roses lit up during Luminate Sandringham, the Sandringham Estate’s winter light trail
Photograph: Joe Giddens/PA

Deal, UK
A wild short-eared owl flies over grassland in Kent while hunting for food in the late afternoon sunshine
Photograph: Gareth Fuller/PA
Market Closes for November 27, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1991, both houses of Congress passed legislation bailing out the dying savings and loan industry. The bailout bill plowed another $25 billion of taxpayers’ money directly into the S&L bailout, while authorizing up to $35 billion in new borrowings to finance the government’s purchase of bad loans.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.3% at 25,488.30 in Toronto.
The move follows the previous session’s little change.
Today, financials stocks led the market higher, as 9 of 11 sectors gained; 145 of 219 shares rose, while 71 fell.
Alimentation Couche-Tard Inc. contributed the most to the index gain, increasing 4.3%.
Parkland Corp. had the largest increase, rising 5.1%.
Insights
* This year, the index rose 22%, heading for the best year since 2021
* This month, the index rose 5.5%
* The index advanced 27% in the past 52 weeks. The MSCI AC Americas Index gained 31% in the same period
* The S&P/TSX Composite is 0.2% below its 52-week high on Nov. 25, 2024 and 28% above its low on Nov. 28, 2023
* The S&P/TSX Composite is up 1.8% in the past 5 days and rose 4.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.4 on a trailing basis and 17.5 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 8.80% compared with 8.86% in the previous session and the average of 8.13% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 32.4540| 0.4| 17/9
Consumer Staples | 24.1681| 2.5| 9/1
Utilities | 8.6734| 0.9| 14/1
Communication Services | 6.3996| 1.0| 4/1
Consumer Discretionary | 5.7609| 0.7| 9/2
Information Technology | 4.9919| 0.2| 8/2
Industrials | 3.8211| 0.1| 10/17
Real Estate | 2.9286| 0.6| 15/4
Health Care | 0.7466| 1.0| 3/0
Energy | -2.9346| -0.1| 23/18
Materials | -3.8323| -0.1| 33/16
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Couche-Tard | 18.5900| 4.3| 32.9| 5.7
Brookfield Corp | 16.3500| 1.9| 3.7| 62.0
RBC | 11.0100| 0.6| -16.1| 31.2
Agnico Eagle Mines Ltd | -4.1430| -1.0| 2.9| 61.2
Celestica | -4.3830| -4.3| 22.9| 200.7
TC Energy | -4.4370| -0.9| 0.2| 44.1
US
By Rita Nazareth
(Bloomberg) — A selloff in giant technology companies dragged down stocks, while the latest economic data gave support to the Federal Reserve’s cautious stance on rate cuts.
Equities halted a seven-day rally that drove the S&P 500 to all-time highs.
A Bloomberg gauge of the “Magnificent Seven” mega caps slid about 1%.
Dell Technologies Inc. and HP Inc. tumbled at least 11% after their results disappointed investors.
The US Federal Trade Commission has opened an antitrust investigation of Microsoft Corp., drilling into everything from the company’s cloud computing and software licensing businesses to cybersecurity offerings and artificial intelligence products.
“It’s beginning to look a lot like ‘tech mess’,” said
Jonathan Krinsky at BTIG. “The relative breakdown in tech is a concern heading into 2025, although the good news so far is rotation into other parts of the market keeps the broadening trade alive.”
In a thin trading session ahead of the Thanksgiving holiday, data showed the Fed’s preferred measure of underlying inflation picked up.
While in-line with estimates, the core personal consumption expenditures climbed 2.8% from October last year.
Separate figures showed the economy expanded at a solid pace.
The data support recent comments by many Fed officials that there’s no rush to cut rates as long as the labor market remains healthy and the US continues to power ahead.
To Bret Kenwell at eToro, overall inflation has been moving in the desired direction, but a lack of further follow-through could force investors to reassess bets on future rate cuts.
“The last mile towards price stability has been stymied by still ‘sticky’ inflation and bumps along road,” said Quincy Krosby at LPL Financial.
The S&P 500 dropped 0.4%.
The Nasdaq 100 slid 0.9%.
The Dow Jones Industrial Average fell 0.3%.
Treasury 10-year yields declined six basis points to 4.25%.
The Bloomberg Dollar Spot Index slipped 0.7%.
Bitcoin rallied.
JPMorgan Chase & Co.’s equity strategy team, led for years by Marko Kolanovic until his departure earlier in 2024, has turned positive on US stocks.
Dubravko Lakos-Bujas, who took over market research for the firm this summer, released a year-end 2025 target of 6,500, which eclipses the average projection of about 6,300 among strategists tracked by Bloomberg.
“Heightened geopolitical uncertainty and the evolving policy agenda are introducing unusual complexity to the outlook, but opportunities are likely to outweigh risks,” he wrote.
US stocks have extended their outperformance against international peers this year, powered by tech shares and the artificial intelligence frenzy, while the economy remains resilient.
The S&P 500 has climbed over 25% in 2024, making numerous record highs and largely outpacing the MSCI World Ex-USA Index.
The valuation gap has also widened, with US stocks now trading at a record 60% premium to international peers based on forward price-to-earnings ratios.
While the stock market is taking a breather after the S&P 500 notched its 52nd record of the year, seasonal trends suggest the momentum could continue.
Since 1950, the gauge has generated an average gain of 1.8% from Thanksgiving through year-end and finished higher about 70% of the time over this period, according to Adam Turnquist at LPL Financial.
This compares to the broader market’s average gain of 1% and positivity rate of 63% during all six-week periods since 1950.
When the index is higher on the year into the holiday, the average gain into year-end bumps up to 2.1%, with 75% of occurrences yielding positive results, he noted.
Inflows into US equities surged after the election and a retail frenzy is back, while selling of Europe continues unabated, according to Barclays Plc’s Emmanuel Cau.
The strategist still sees some dry powder as despite big US inflows from long-only funds and retail, there was limited re-grossing by hedge funds and systematic strategies.
He says sentiment indicators haven’t rebounded with the overall market, suggesting bullishness is not as widespread as it seems.

Corporate Highlights:
* Autodesk Inc. Chief Executive Officer Andrew Anagnost said the company is focused on cutting costs in its sales and marketing teams, a move that comes following pressure from activist investor Starboard Value LP.
* The US Federal Trade Commission is looking into whether Uber Technologies Inc. violated consumer protection laws with its flagship subscription service.
* Urban Outfitters Inc. reported stronger-than-expected sales growth in the third quarter, led by its Anthropologie brand.
* Nordstrom Inc. raised the lower end of its annual sales guidance after its off-price and flagship chains reported quarterly growth that was better than expected — results that could encourage the company’s board to push the founding family for a better offer to take Nordstrom private.
* BlackRock Inc., Vanguard Group Inc. and State Street Corp. were sued by a group of states led by Texas for allegedly breaking antitrust law by boosting electricity prices through their investments, in the highest-profile lawsuit yet against the beleaguered ESG industry.
* Symbotic Inc. cut its first-quarter revenue forecast and said it was unable to file its annual filing due to accounting errors.
* Brookfield Asset Management Ltd. walked away from a plan to acquire Grifols SA, ending months of negotiations to take over the Spanish blood-plasma company.

Key events this week:
* 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 fell 0.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.9%
* The Dow Jones Industrial Average fell 0.3%
* The MSCI World Index fell 0.1%
* Bloomberg Magnificent 7 Total Return Index fell 0.9%
* The Russell 2000 Index was little changed
Currencies
* The Bloomberg Dollar Spot Index fell 0.7%
* The euro rose 0.7% to $1.0565
* The British pound rose 0.9% to $1.2678
* The Japanese yen rose 1.3% to 151.11 per dollar
Cryptocurrencies
* Bitcoin rose 5.4% to $96,643.37
* Ether rose 9.2% to $3,627.61
Bonds
* The yield on 10-year Treasuries declined six basis points to 4.25%
* Germany’s 10-year yield declined three basis points to 2.16%
* Britain’s 10-year yield declined six basis points to 4.29%
Commodities
* West Texas Intermediate crude was little changed
* Spot gold rose 0.1% to $2,636.99 an ounce
This story was produced with the assistance of Bloomberg Automation.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
Don’t dwell on what went wrong.  Instead, focus on what to do next.  Spend your energies on moving forward toward finding the answer. -Denis Waitley, b. 1933.

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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www.carolannsteinhoff.com