October 1, 2021 Newsletter

Dear Friends,

Tangents: Happy Friday.

1908 Henry Ford introduced the Model T automobile to the market; each car cost $825.  Go to article »

1890-Yosemite National Park established.
Julie Andrews, actress, b. 1935.
Jimmy Carter,39^th President, b. 1924.

Earth is dimming. 

The final days of the world’s oldest bank. 

The original ‘Scream’ house is on Airbnb — and you can book a stay on Halloween.  This has big “first person to bite the dust in a horror movie” energy. 

PHOTOS OF THE DAY

The only lighthouse in London – at Trinty Buoy Wharf near Canning Town – emits a beam for the first time since it closed for duty in the late 19^th century. It is part of an art installation, The Sonic Ray by Artangel, encoding and transmitting the sound of Longplayer, Jem Finer’s 1000 year-long musical composition, to Richard Wilson’s cleaved ship sculpture, Slice of Reality, in north Greenwich.
CREDIT: IAN WEST/PA

A long exposure photo shows light trails from traffic and tram rails in Frankfurt, Germany
CREDIT: MICHAEL PROBST/AP

Lightning forks over the Gulf of Iskenderun in Hatay, Turkey 
BURAK MILLI/ANADOLU AGENCY VIA GETTY IMAHES

Market Closes for October 1^st, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1928, the Dow Jones Industrial Average assumed its modern form, adding ten new members so that it comprised 30 of the country’s greatest growth stocks. Among them were such giants as American Smelting, Nash Motors, Postum, Texas Gulf Sulphur and Victor Talking Machine.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.4 percent at 20,150.87 in Toronto. The move was the biggest since rising 0.8 percent on Sept. 22 and follows the previous session’s decrease of 0.4 percent. Toronto-Dominion Bank contributed the most to the index gain, increasing 1.8 percent. Air Canada had the largest increase, rising 6.5 percent. Today, 118 of 234 shares rose, while 107 fell; 5 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index rose 16 percent, heading for the best year since 2019
* So far this week, the index fell 1.2 percent, heading for the biggest decline since the week ended July 16
* The index advanced 25 percent in the past 52 weeks. The MSCI AC Americas Index gained 29 percent in the same period
* The S&P/TSX Composite is 3.6 percent below its 52-week high on Sept. 7, 2021 and 30.7 percent above its low on Oct. 30, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.1 on a trailing basis and 16 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.16t
* 30-day price volatility fell to 9.41 percent compared with 9.52 percent in the previous session and the average of 7.31 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 47.1780| 0.7| 18/10
* Industrials | 20.2479| 0.9| 16/12
* Energy | 15.7409| 0.6| 18/4
* Consumer Discretionary | 6.7956| 0.9| 10/3
* Real Estate | 4.0975| 0.7| 19/6
* Health Care | -0.3545| -0.2| 2/7
* Information Technology | -1.1222| 0.0| 8/7
* Communication Services | -2.0299| -0.2| 3/4
* Utilities | -2.1235| -0.2| 5/11
* Materials | -3.5300| -0.2| 16/34
* Consumer Staples | -4.2787| -0.6| 3/9
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* TD Bank | 19.2100| 1.8| 96.4| 18.7
* Brookfield Asset | | | |
* Management | 11.8400| 1.7| -41.2| 32.2
* Nutrien | 10.6900| 3.3| -22.1| 38.7
* Wheaton Precious | | | |
* Metals | -3.0000| -2.0| 9.3| -12.1
* Franco-Nevada | -4.5230| -2.1| -44.3| 1.0
* Shopify | -9.5190| -0.7| -27.3| 18.8

US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — Stocks climbed as prospects for a pickup in growth outweighed concern over inflation pressures at a time when the Federal Reserve is getting ready to wind down its pandemic-era stimulus. Promising results for Merck & Co.’s experimental Covid-19 pill triggered a rally in companies that stand to benefit from an economic reopening.  Commodity and financial shares were among the biggest gainers in the S&P 500, while a gauge of small caps jumped 1.7%. Airlines, cruise operators, hotels and amusement parks soared. “We continue to advise investors to buy winners from global growth,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “Positive sentiment will return as recent headwinds abate and the focus shifts back to the outlook for solid economic growth and strong earnings.” A measure of American manufacturing expanded at the fastest pace in four months, bolstered by robust demand for factory goods and burgeoning inventory. U.S. consumer sentiment edged higher in late September, though remained near a pandemic low. The personal consumption expenditures index — which the Fed uses for its inflation target — had the biggest annual increase since 1991.
Former U.S. Treasury Secretary Lawrence Summers said investors may be tuning into the risk of an overheating U.S. economy and the chance that pushes the central bank into a faster withdrawal of monetary policy stimulus. The reopening of the global economy will likely lead to high inflation for the next 12 to 18 months, said BlackRock Inc. Vice Chairman Philipp Hildebrand. Despite Friday’s rally in stocks, the S&P 500 still suffered its biggest weekly slide since February. “There’s a lot to sift through for investors, and I think that’s what you’re seeing with the increase in volatility,” said Ryan Nauman, market strategist at Zephyr. Favoring stocks in some U.S. industries and avoiding others mattered less in the third quarter than it has in decades. A comparison of the S&P 500’s main groups shows as much. The biggest gain was 2.3%, posted by financial stocks, and the largest drop was 4.6% for industrial shares. The gap of 6.9 percentage points between first and last place was the smallest in any quarter since the sector indexes were first calculated in 1989, according to data compiled by Bloomberg. The prior record was 8.1 points, set in 1989’s third quarter.

Some corporate highlights:
* Cryptocurrency-exposed stocks like Riot Blockchain Inc. and Marathon Digital Holdings Inc. joined a rally in Bitcoin.
* Zoom Video Communications Inc. and Five9 Inc. scrapped their $14.7 billion merger agreement.
* Southwest Airlines Co. was upgraded to overweight from neutral at JPMorgan Chase & Co.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.7%
* The Dow Jones Industrial Average rose 1.4%
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.2% to $1.1598
* The British pound rose 0.6% to $1.3550
* The Japanese yen rose 0.2% to 111.03 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 1.47%
* Germany’s 10-year yield declined three basis points to -0.22%
* Britain’s 10-year yield declined two basis points to 1.00%
Commodities
* West Texas Intermediate crude rose 0.9% to $75.74 a barrel
* Gold futures rose 0.2% to $1,760.30 an ounce
–With assistance from David Wilson.
Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

About the worst thing a man can do is to let a dream die. -Louis L’Amour, 1908-1988.

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