November 8,2022 Newsletter

Dear Friends,

Tangents: Full moon tonight.
November 8, 1971: The album “Led Zeppelin IV,” which included the song “Stairway to Heaven,” was released.  Go to article »
November 8, 1989: Ernest Coveley who used a cucumber wrapped in a bin liner as a pretend shotgun in 14 robberies, was imprisoned for seven years.  Police stated that Coveley destroyed the evidence by making cucumber sandwiches.
1519: Cortes conquers Mexico.
1929: MOMA opens to the public.

Edmund Halley, astronomer, b. 1656
Margaret Mitchell, writer, b. 1900
Bonnie Raitt, musician, b. 1949

Stanley Tucci has five rules for making perfect pasta.
What would you bid for a T. rex skull?

Stone Age child may have been buried with a wolf:  A Stone Age burial in Finland holds the remains of a child, as well as an assortment of grave goods, bird feathers, canine hairs and plant fibers, giving archaeologists insight into burial practices from that time period.
First discovered in 1991 in Majoonsuo, an archaeological site near the town of Outokumpu in eastern Finland, the grave contains the teeth of a child, who, based on a dental analysis, died between the ages of 3 and 10.
Full Story: Live Science (11/7)

In a 1st, two people receive transfusions of lab-grown blood cells: Two people in the U.K. are the first ever to receive transfusions of lab-grown red blood cells.  The pair are healthy volunteers in the “Recovery and survival of stem cell originated red cells” (RESTORE) trial, a one-of-a-kind clinical trial taking place at Addenbrooke’s Hospital in Cambridge. The trial will ultimately include at least 10 participants, each of whom will receive a tiny transfusion of about one to two teaspoons-worth of lab-grown red blood cells.  Full Story: Live Science (11/8)

Gas cloud 20 times bigger than the Milky Way may have been left by a cosmic intruder, study reveals: Scientists have discovered a gigantic trail of gas drifting out from a quintet of warring galaxies.
The mysterious gas cloud — the largest ever seen around a group of galaxies — may have been left behind by a “cosmic intruder,” a new study reveals.  Full Story: Live Science (11/7)
PHOTOS OF THE DAY

A composite image of the total lunar eclipse, in which the moon is completely covered by the Earth’s shadow, seen from the city of Gwangju, south-west South Korea
Photograph: Yonhap/EPA

The blood-red moon passes over the Empire State Building in New York City
Photograph: Gary Hershorn/Getty Images

The eclipse is visible in Kolkata, India
Photograph: Piyal Adhikary/EPA
Market Closes for November 8^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1887, the Johannesburg Stock Exchange was founded in Johannesburg, South Africa.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.6%, or 114.4 to 19,660.31 in Toronto.
The index advanced to the highest closing level since Sept. 14.
Nutrien Ltd. contributed the most to the index gain, increasing 5.9%.
Maple Leaf Foods Inc. had the largest increase, rising 12.4%.
Today, 151 of 236 shares rose, while 82 fell; 7 of 11 sectors were higher, led by materials stocks.
Insights
* This year, the index fell 7.4%, heading for the worst year since 2018
* The index declined 8.8% in the past 52 weeks. The MSCI AC Americas Index lost 20% in the same period
* The S&P/TSX Composite is 11.5% below its 52-week high on April 5, 2022 and 10% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.7% in the past 5 days and rose 5.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.9 on a trailing basis and 12.3 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$3.12t
* 30-day price volatility little changed to 20.52% compared with 20.52% in the previous session and the average of 22.57% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 102.6095| 4.7| 45/6
Utilities | 10.4343| 1.2| 13/2
Financials | 10.3285| 0.2| 15/14
Information Technology | 7.8521| 0.8| 10/4
Industrials | 6.0320| 0.2| 17/10
Real Estate | 2.0116| 0.4| 16/6
Consumer Staples | 1.7829| 0.2| 6/5
Health Care | -0.6872| -0.8| 3/4
Communication Services | -3.0028| -0.3| 2/4
Consumer Discretionary | -4.4929| -0.6| 8/6
Energy | -18.4691| -0.5| 16/21
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Nutrien | 21.6300| 5.9| 18.2| 9.9
Barrick Gold | 16.3300| 6.8| 64.0| -12.8
Franco-Nevada | 13.6500| 6.1| 77.7| 2.9
Power of Canada | -3.9670| -3.1| 3.3| -23.2
Suncor Energy | -4.4660| -1.0| -21.6| 52.7
Canadian Natural Resources | -6.6530| -1.0| -55.8| 55.9
US
By Stephen Kirkland and Emily Graffeo
(Bloomberg) — US stocks rose for a third day as investors awaited midterm election results and monitored the selloff in crypto tokens that wiped out more than 10% from the price of Bitcoin.
The dollar fell with Treasury yields.
The S&P 500 closed higher, after earlier wiping out gains that had topped 1%.
Sentiment was dented after Bitcoin plunged as the owner of the largest crypto exchange swooped in to buy a smaller rival that ran into liquidity trouble.
The yield on two-year Treasuries, more sensitive to Federal Reserve policy changes, shed 6 basis points, while a gauge of the dollar dropped for a third day.
In postmarket trading, shares in Walt Disney Co. declined after the company reported sales and profit that fell below Wall Street expectations.
Equities gained in the regular session as investors eyed potential gridlock from midterm results.
Still, any final outcome may not be known for days or even weeks if races are as close as polls suggest and if losers challenge results.
In an unexpected development, billionaire Changpeng “CZ” Zhao consolidated his position atop the crypto world on Tuesday with a move to take over FTX.com.
Terms of the emergency buyout were scant, helping to send prices of cryptocurrencies tumbling after a brief rebound.
“The mini crash in Bitcoin/crypto did destabilize the stock market and cause a sharp drop,” Jay Hatfield of Infrastructure Capital said. “Investors don’t like to see any disruptions or mini crashes in any risk asset.”          ‘
A history of robust performance following midterm results has helped buoy optimism about the outlook for equity markets.
While polls suggest Republicans could make gains, thereby placing a check on Democratic policies, there are multiple scenarios.
The best outcome for Treasuries could be a Republican control of both the House of Representatives and Senate, while the dollar could find support should Democrats keep both chambers.

For many the biggest headwind for markets is the Fed’s monetary tightening with Thursday’s consumer-price-index data the next event risk coming on the heels of core consumer prices rising 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.
Going forward there may be a silver lining in gridlock for policy makers, according to Art Hogan, chief market strategist at B. Riley Wealth.
“Divided government, particularly leading into a presidential election, will most likely create a standstill where very little gets done,” Hogan wrote. “That’s probably a good thing for the Fed because various stimuli have not made
their work easier.”
More commentary
* “The more and more you just get polls or even some slight acknowledgements from places that the Republicans are probably going to take up at least one chamber of Congress, I think the market is actually seeing that as a good outcome,” Shawn Cruz, head trading strategist at TD Ameritrade, said in an interview.  “They actually want a little bit of gridlock out of Washington.”
* “The inflation statistics are going to be more important than the election,” Michael Darda, chief economist at MKM Partners, said on Bloomberg TV. “Inflation will tend to lag the cycle so if you have the Fed chasing down lagging indicators with a very rapid succession of interest rate increases and quantitative tightening, there is a very significant risk that the Fed significantly overshoots neutral.”
* “The gridlock rally is a bit overdone, as we were already there,” said Victoria Greene, G Squared Private Wealth CIO.  “Investors will need to temper expectations on results coming in this evening. Many contested races it might be weeks, or god forbid, months before we know results. Politics matters personally, less so to the markets.”

Treasuries gained across the board Tuesday, with the benchmark 10-year rate dropping as much as 9 basis points.
Meanwhile, traders shaved bets on rate hikes, with swap markets still leaning toward a 50 basis-point Fed hike in December.
More notable moves were further out, with the peak reaching just above 5% in the first half of 2023.
Nvidia Corp. climbed as it began producing a processor for China.
Take-Two Interactive Software Inc. fell after reducing its forecast for net bookings.
Europe’s Stoxx 600 rallied, after a weak open.
Chinese equities halted a rally as traders considered a jump in virus infections and official comments defending Covid Zero.
Oil fell as China’s renewed commitment to strict Covid-19 policies overshadowed a global market backdrop of shrinking fuel inventories.
Key events this week:
* 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 0.6% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.8%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 0.8%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.5% to $1.0071
* The British pound rose 0.2% to $1.1536
* The Japanese yen rose 0.7% to 145.63 per dollar
Cryptocurrencies
* Bitcoin fell 12% to $18,172.17
* Ether fell 17% to $1,310.88
Bonds
* The yield on 10-year Treasuries declined seven basis points to 4.14%
* Germany’s 10-year yield declined six basis points to 2.28%
* Britain’s 10-year yield declined nine basis points to 3.55%
Commodities
* West Texas Intermediate crude fell 2.8% to $89.18 a barrel
* Gold futures rose 2.1% to $1,715.10 an ounce
–With assistance from Jan-Patrick Barnert, Haidi Lun, Brett Miller, Srinivasan Sivabalan, Isabelle Lee, Natalia Kniazhevich and Vildana Hajric.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Most of the important things in the world have been accomplished by people
who have kept on trying when there seemed to be no hope at all. –Dale Carnegie, 1888-1955.

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