November 3, 2021 Newsletter

Dear Friends,

Tangents:
1839 The first Opium War between China and Britain broke out. Go to Article >>

PHOTOS OF THE DAY
Workers prepare garlands of marigolds at a wholesale flower market in preparation for Diwali
CREDIT: Mayank Makhija/NurPhoto/Rex/Shutterstock
Artists perform on the banks of the Sarayu River on the eve of Diwali.
CREDIT: Rajesh Kumar Singh/AP
Standing With Giants, an art installation at Hampton Court Palace. It comprises more than 100 specially commissioned silhouettes of soldiers, including Indian soldiers who camped in Home Park, Hampton Court, during the first world war
CREDIT: Matt Dunham/AP

Market Closes for November 3^rd, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1999, just over nine months after breaking 2500 for the first time, the Nasdaq Composite Index rose 46.88 points to break the 3000 barrier, closing at 3028.51 on its fourth-highest volume yet on record, 1.33 billion shares.
Canada
By Alex Wittenberg
(Bloomberg) — Canadian equities finished close to an all-time record amid strength in the health-care sector and positive sentiment in U.S. markets following the Federal Reserve decision. The S&P/TSX Composite rose 0.4% to 21,265.10 in Toronto. The index advanced to the highest closing level since Oct. 25 after the previous session’s decrease of 0.4%. Today, financial stocks led the market higher, as eight of 11 sectors gained; 147 of 233 shares rose, while 84 fell. Shopify Inc. contributed the most to the index gain, increasing 1.1%.  SSR Mining Inc. had the largest increase, rising 9.8%.
Insights
* This year, the index rose 22%, heading for the best year in at least 10 years
* The index advanced 33% in the past 52 weeks. The MSCI AC Americas Index gained 39% in the same period
* The S&P/TSX Composite is 0.2% below its 52-week high on Oct. 26, 2021 and 34.7% above its low on Nov. 3, 2020
* The S&P/TSX Composite is up 1.5% in the past 5 days and rose 5.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.6 on a trailing basis and 16.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.33t
* 30-day price volatility fell to 10.19% compared with 10.32% in the previous session and the average of 10.24% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 54.0173| 0.8| 26/2
* Materials | 15.1270| 0.6| 38/16
* Information Technology | 15.1190| 0.6| 7/8
* Real Estate | 9.2073| 1.4| 20/4
* Consumer Discretionary | 7.1132| 1.0| 9/4
* Health Care | 6.7226| 3.5| 8/0
* Consumer Staples | 3.0771| 0.4| 12/1
* Communication Services | 1.5427| 0.2| 4/3
* Utilities | -0.2098| 0.0| 4/12
* Industrials | -6.6202| -0.3| 13/17
* Energy | -10.0034| -0.3| 6/17
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 15.7600| 1.1| -52.5| 28.8
* Royal Bank of Canada | 14.6400| 1.1| -51.7| 26.4
* TD Bank | 9.6110| 0.8| -62.1| 26.7
* Canadian Natural  Resources | -4.0360| -0.9| -34.1| 71.9
* Suncor Energy | -5.3830| -1.6| -9.7| 47.3
* Waste Connections | -7.0730| -2.3| 32.4| 27.8
US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — Stocks climbed to a record after the Federal Reserve signaled monetary policy will remain accommodative even as the central bank starts reducing its massive bond-buying program this month. In a feat not seen since January 2018, the S&P 500, the Dow Jones Industrial Average, the Nasdaq 100 and the Russell 2000 closed at their all-time highs for a second straight day. The Treasury curve steepened after Fed Chair Jerome Powell sought to stress that tapering doesn’t mean rate hikes are coming soon.  He said officials can be patient on tightening, but won’t flinch from action if warranted by inflation. The dollar fell. “Powell was very careful not to make any missteps today, sticking carefully to his script that their focus is on tapering, not raising rates,” wrote Seema Shah, chief strategist at Principal Global Investors. “That’s a shame, because interest-rate hikes are all that markets want to talk about!” Traders largely maintained bets on the timing of rate increases from the level they were at before the Fed decision. Money-market derivatives show about 55 basis points of rate hikes by the end of 2022. The first one is seen coming around July, with about a 70% chance it happens the month before, overnight index swaps show.

Some corporate highlights:
* In late trading, Qualcomm Inc., the world’s largest smartphone chipmaker, gave a stronger-than-expected outlook for the current quarter. Video-game publisher Electronic Arts Inc.’s revenue forecast was broadly in line with analysts’ estimates. Fox Corp. reported quarterly sales and earnings that beat Wall Street’s expectations.
* CVS Health Corp. jumped Wednesday after raising its annual forecast.
* Video-game company Activision Blizzard Inc. tumbled on an outlook that was seen as disappointing.

The Treasury announced the first reduction in its quarterly sale of longer-term debt in more than five years, reflecting diminishing borrowing needs as the wave of pandemic-relief spending ebbs. U.S. companies added the most jobs in four months, suggesting employers are making progress in filling a near-record number of open positions. The data precede Friday’s monthly employment report from the Labor Department, which is forecast to show that private payrolls increased by 408,000 in October. Service providers expanded at a record pace in October, powered by resilient demand and stronger business activity.

Here are some events to watch this week:
* OPEC+ meeting on output, Thursday
* Bank of England rate decision, Thursday
* U.S. trade, initial jobless claims, Thursday
* U.S. unemployment, nonfarm payrolls, Friday

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 1.1%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World index rose 0.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.2% to $1.1605
* The British pound rose 0.5% to $1.3680
* The Japanese yen was little changed at 114.01 per dollar
Bonds
* The yield on 10-year Treasuries advanced four basis points to 1.59%
* Germany’s 10-year yield was little changed at -0.17%
* Britain’s 10-year yield advanced four basis points to 1.07%
Commodities
* West Texas Intermediate crude fell 4.9% to $79.82 a barrel
* Gold futures fell 0.9% to $1,772.70 an ounce
–With assistance from Andreea Papuc, Srinivasan Sivabalan, Emily Graffeo, Nathan Hager and Lu Wang.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

Most of the misery of the world has been caused by wars. 
And when the wars were over, no one ever knew what they were all about. -Margaret Mitchell, 1900-1949, Gone with the Wind.

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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com