November 7, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.

On Nov. 7, 1917, Russia’s Bolshevik Revolution took place as forces led by Vladimir Ilyich Lenin overthrew the provisional government of Alexander Kerensky.  Go to article »

Marie Curie, physicist, b. 1867
Albert Camus, French existentialist writer, b. 1913
Billy Graham, evangelist, b. 1918
Joni Mitchell, musician, b. 1943

Houston Astros won the World Series.  In a thrilling Game 6, the Houston Astros defeated the Philadelphia Phillies on Saturday 4-1. See the World Series in pictures here

Last total lunar eclipse until 2025 rises on Tuesday, Nov. 8. Here’s how to watch. On Tuesday, Nov. 8, the full Beaver Moon will pass into the darkest part of Earth’s shadow for nearly 90 minutes in the final lunar eclipse of 2022 — and the last total lunar eclipse until 2025, according to NASA.  At least part of the lunar eclipse will be visible throughout East Asia, Australia, the Pacific and North America. Viewers in the United States and Canada will need to rise bright and early to catch the show, as the first phase of the eclipse will begin at 4:09 a.m. EST (0900 GMT).  Full Story: Live Science (11/5)

Scientists are working on an official ‘alien contact protocol’ for when ET phones Earth: If extraterrestrial life sent us a message tomorrow, how would humanity respond? According to researchers, we don’t know yet — and that’s a problem.  That’s why, for the first time in 35 years, a team of policy experts and scientists have united to establish a set of alien-contact protocols for the entire world to follow in the event of a sudden encounter with E.T.
Full Story: Live Science (11/5)

Meta’s new AI just predicted the shape of 600 million proteins in 2 weeks:  Scientists at Meta, the parent company of Facebook and Instagram, have used an artificial intelligence (AI) language model to predict the unknown structures of more than 600 million proteins belonging to viruses, bacteria and other microbes. The program, called ESMFold, used a model that was originally designed for decoding human languages to make accurate predictions of the twists and turns taken by proteins that determine their 3D structure.  Full Story: Live Science (11/5)
PHOTOS OF THE DAY

San Sebastián, Spain
A man watches the waves in the early morning next to part of the Eduardo Chillida’s artwork El Peine del Viento
Photograph: Javier Etxezarreta/EPA

Bad Tölz, Germany
People from the farming community dressed in traditional Bavarian clothing drink schnapps in a wooden carriage during the Leonhardi Ritt procession, on the way to pray to St Leonhard, the patron saint of animals
Photograph: Lukas Barth/Reuters

New York, US
The full moon rises behind the EdgeNYC observation deck in Hudson Yards, as seen from Hoboken, New Jersey
Photograph: Lokman Vural Elibol/Anadolu Agency/Getty Images
Market Closes for November 7^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
🗠 On this day in 1929, the stock market endured volatile trading as 2.4 million shares changed hands in the first half hour, one of the heaviest openings yet on record. By lunchtime, the market had slumped 6%. Then J.P. Morgan & Co. stepped in publicly and began to buy stocks for its own account. By day’s end, the Dow managed to squeeze out a small gain.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.5%, or 96.1 to 19,545.91 in Toronto.
The index advanced to the highest closing level since Sept. 19.
Brookfield Asset Management Inc. contributed the most to the index gain, increasing 2.0%.
Summit Industrial Income REIT had the largest increase, rising 25.5%.
Today, 149 of 236 shares rose, while 84 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index fell 7.9%, heading for the worst year since 2018
* The index declined 8.9% in the past 52 weeks. The MSCI AC Americas Index lost 20% in the same period
* The S&P/TSX Composite is 12% below its 52-week high on April 5, 2022 and 9.4% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.6% in the past 5 days and rose 5.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13 on a trailing basis and 12.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.1t
* 30-day price volatility fell to 20.52% compared with 20.74% in the previous session and the average of 22.63% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 35.1750| 0.6| 20/9
Industrials | 24.4021| 1.0| 19/8
Real Estate | 15.6647| 3.3| 20/2
Information Technology | 13.2531| 1.3| 9/5
Energy | 7.0861| 0.2| 25/11
Consumer Staples | 6.3910| 0.8| 8/3
Materials | 1.3914| 0.1| 28/23
Communication Services | 1.0485| 0.1| 5/2
Consumer Discretionary | 0.4990| 0.1| 9/5
Health Care | 0.4287| 0.5| 3/4
Utilities | -9.2467| -1.0| 3/12
================================================================
| | | | YTD
|Index Points| | Volume VS | Change
Top Contributors | Move |% Change |20D AVG (%)| (%)
================================================================
Brookfield Asset Management | 10.8200| 2.0| -31.9| -27.2
Canadian Pacific | 10.6300| 1.6| 27.9| 14.2
RBC | 8.5450| 0.7| -29.2| -4.5
Fortis | -2.5050| -1.4| -3.3| -13.8
Enbridge | -4.7400| -0.6| 109.8| 8.9
Ritchie Bros | -11.3800| -17.7| 1,049.3| -10.7
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — US shares rose in a broad-based rally that swept up small caps as well as blue-chip stocks, ahead of midterm elections and inflation data later this week.
The dollar fell with Treasuries.
The S&P 500 closed near session highs, with all but three of the 11 industry groups advancing.
The tech-heavy Nasdaq 100 also caught bids, while the Dow Jones Industrial Average outperformed, rising as much as 1.5% with health-care names topping the leaderboard.
The Russell 2000 rallied, reversing losses in afternoon trading.
Stocks gained for a second day ahead of US midterms.
Morgan Stanley’s Michael Wilson said polls pointing to Republicans winning at least one chamber of Congress provide a potential catalyst for lower bond yields and higher equity prices.
“Has the stock market been voting early?” said Ed Yardeni, founder of his namesake research firm, referring to the S&P 500 bounce back from an October low. “Tomorrow’s midterm elections may further boost stock prices in coming months if history is a guide. Our soft-landing economic outlook, if it pans out (60% subjective odds), may be another wind at the stock market’s back.”

Optimism, for the moment, is outweighing concerns over the Federal Reserve’s resolute campaign against price surges, signs of stress in US corporate performance and China’s announcement it will “unswervingly” adhere to current Covid Zero policy.
Meanwhile, Facebook parent Meta Platforms Inc. rallied on plans to cut jobs.
Tesla Inc. was the biggest drag on the S&P 500 as the stock continued to sell off in the wake of Chief Executive Officer Elon Musk’s purchase of Twitter Inc.
Apple Inc. bounced back from earlier losses triggered by a report saying it expected to produce at least three million fewer iPhone 14 handsets than originally anticipated this year.
Lyft Inc. fell in postmarket trading after the ride-hailing giant reported weaker-than-expected rider growth, overshadowing better profits from higher fares.
Stocks rose on Friday after data showed strong hiring and wage increases along with higher unemployment.
That offered a mixed picture for Fed officials debating how long to extend their campaign to curb elevated inflation.
Swaps markets are leaning toward a 50 basis-point Fed rate increase in December, after a fourth consecutive jumbo hike to a target range of 3.75% to 4% at last week’s meeting.
Rates are expected to peak slightly above 5% around mid-2023.
The latest US inflation reading due Thursday will be closely watched after the core consumer price index rose more than forecast to a 40-year high in September.
Even if prices begin to moderate, the CPI is far above the Fed’s comfort zone.
“Since we might not know the answer to what the makeup of Congress will be this week, Thursday’s CPI number will be very important once again,” Matt Maley, chief market strategist at Miller Tabak + Co., said in a note. “Even if we get a better-than-expected CPI number later this week, the odds that it will only create a very short-term bounce are high. Before long, the stock market should roll-over once again.”
In the corporate debt market, Oracle Corp.’s long-awaited acquisition financing is leading 15 US high-grade issuers looking to get ahead of consumer price index data on Thursday and a bond market holiday on Friday.
Meanwhile, Chinese stocks listed in the US fell Monday after health authorities repeated their strict adherence to the country’s Covid Zero policies.
The Nasdaq Golden Dragon China Index slid more than 2%, halting a four-day rally.
Key events this week:
* Euro-zone retail sales, Tuesday
* US midterm elections, Tuesday
* EIA oil inventory report, Wednesday
* China aggregate financing, PPI, CPI, money supply, new yuan loans, Wednesday
* US wholesale inventories, MBA mortgage applications, Wednesday
* Fed officials John Williams, Tom Barkin speak at events, Wednesday
* US CPI, US initial jobless claims, Thursday
* Fed officials Lorie Logan, Esther George, Loretta Mester speak at events, Thursday
* US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.1%
* The Dow Jones Industrial Average rose 1.3%
* The MSCI World index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.6% to $1.0021
* The British pound rose 1.2% to $1.1514
* The Japanese yen was little changed at 146.60 per dollar
Cryptocurrencies
* Bitcoin fell 1.6% to $20,794.56
* Ether fell 0.2% to $1,600.58
Bonds
* The yield on 10-year Treasuries advanced six basis points to4.22%
* Germany’s 10-year yield advanced five basis points to 2.34%
* Britain’s 10-year yield advanced 10 basis points to 3.64%
Commodities
* West Texas Intermediate crude fell 0.7% to $91.99 a barrel
* Gold futures were little changed
–With assistance from Michael G. Wilson, Tassia Sipahutar, Srinivasan Sivabalan and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Nobody cares how much you know, until they know how much you care. -Theodore Roosevelt, 1858-1919.

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