October 11, 2024 Newsletter

Dear Friends,

Tangents: Happy Friday! Wishing you a Happy Canadian Thanksgiving as well!
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 11, 1726: Benjamin Franklin returns to Philadelphia from England
October 11, 1852: Australia’s oldest university, the University of Sydney, is inaugurated in Sydney
October 11, 2001: Nobel Prize for Economic Sciences jointly awarded to George Akerlof, Joseph E. Stiglitz and A. Michael Spence for “their analyses of markets with asymmetric information”

‘Future You’ AI lets you speak to a 60-year-old version of yourself — and it has surprising wellbeing benefits
An MIT-led project asked young users to talk to an AI-powered simulation of their 60-year-old selves through a chatbot interface. The experience led to decreased anxiety and a boost in optimism.

New DNA findings shed light on Tsavo’s infamous man-eating lions
Scientists extract DNA from hair embedded in the Tsavo lions’ jaws that reveals the species of prey they ate while they were alive. Read more.

British explorer Sandy Irvine’s foot discovered 100 years after he vanished on Everest
The foot, boot and sock thought to belong to Sandy Irvine, who disappeared during George Mallory’s 1924 expedition to climb Mount Everest, have likely been found. They could be a vital clue in unraveling an even bigger mystery. Read more.

Thanksgiving (Canada)

PHOTOS OF THE DAY

Fife, UK
The northern lights, also known as aurora borealis, illuminate the sky over the ‘kissing trees’ near Kinghorn in Scotland
Photograph: Jane Barlow/PA

Kent, UK
The gardener Janice Ackerley trims the topiary hedge of the yew chess set that was planted at Hever Castle in Edenbridge nearly 120 years ago
Photograph: Gareth Fuller/PA

Frankfurt, Germany
Geese are reflected in a puddle as they walk past the skyline of the financial district
Photograph: Michael Probst/AP
Market Closes for October 11^th, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1817, the New York Stock Exchange formally banned negotiated fees, compelling all its members to charge fixed commission rates to the investing public, including members of the brokers’ own families.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.7%, or 168.91 to 24,471.17 in Toronto.
Royal Bank of Canada contributed the most to the index gain, increasing 2.0%.
Brookfield Business Partners LP had the largest increase, rising 4.0%.
Today, 170 of 223 shares rose, while 47 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index rose 17%, heading for the best year since 2021
* So far this week, the index rose 1.3%
* The index advanced 24% in the past 52 weeks. The MSCI AC Americas Index gained 32% in the same period
* The S&P/TSX Composite is at its 52-week high and 30.9% above its low on Oct. 27, 2023
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.5 on a trailing basis and 17 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.85t
* 30-day price volatility rose to 9.30% compared with 9.22% in the previous session and the average of 10.53% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 60.6438| 0.8| 23/3
Industrials | 35.1112| 1.1| 23/3
Energy | 24.8198| 0.6| 33/6
Information Technology | 23.3453| 1.1| 8/2
Materials | 12.7462| 0.4| 34/18
Consumer Discretionary | 11.0308| 1.4| 9/2
Utilities | 4.7699| 0.5| 10/5
Real Estate | 3.6656| 0.7| 14/4
Communication Services | 3.5195| 0.5| 4/1
Health Care | -0.1672| -0.2| 2/2
Consumer Staples | -10.5801| -1.1| 10/1
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | 33.1200| 2.0| 25.1| 27.1
CIBC | 12.7800| 2.4| 52.7| 31.5
Bank of Montreal | 11.2100| 1.8| 67.2| -2.7
Aritzia | -1.6280| -5.6| 320.8| 71.6
Couche-Tard | -13.8700| -3.4| 16.9| -7.4
TD Bank | -40.0300| -4.0| 107.4| -8.3
US
By Rita Nazareth
(Bloomberg) — Wall Street kicked off the earnings season with stocks hitting all-time highs as big banks rallied after posting solid results.
The S&P 500 topped 5,800, notching its 45th record in 2024.
Equity traders worried that the start of Federal Reserve rate cuts would sap bank profits saw things weren’t that bad, with JPMorgan Chase & Co. churning out a surprise increase in net interest income.
At Wells Fargo & Co., NII slumped — but the firm expects that drop to be less steep in the last quarter.
Each stock rose at least 4.4%, pushing the KBW Bank Index to the highest since April 2022.
“We expect earnings season to be solid, including the big banks,” said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management. “Credit card delinquencies are still very low and increased economic activity should drive bank revenues.”
The S&P 500 rose 0.6%, extending gains into a fifth straight week — its longest winning run since May.
The Nasdaq 100 added 0.1%.
The Dow Jones Industrial Average gained 1%.
The Russell 2000 climbed 2.1%.
Tesla Inc. dropped 8.8% after the unveiling of its Robotaxi was light on specifics.
Uber Technologies Inc. and Lyft Inc. jumped over 9.5%.
Treasuries saw small moves, with shorter maturities outperforming.
A Bloomberg gauge of US bonds posted a fourth straight week of declines.
The dollar barely budged, while capping a second consecutive week of gains in anticipation of a slower pace of rate cuts.
West Texas Intermediate oil settled below $76 a barrel.
“Now that the Fed has started its rate-cutting cycle, the economy should get a further boost from lower interest rates on things like credit card debt and business loans,” said David Lefkowitz at UBS Global Wealth Management. “As a result, we expect third-quarter earnings results will be consistent with recent, healthy trends.”
In non-recessionary scenarios, the S&P 500 rises 17% on average in the 12 months after the Fed starts to cut rates, Lefkowitz noted.
He reiterated his S&P 500 price targets of 5,900 and 6,200 for December 2024 and June 2025.
Apollo’s Torsten Slok noted that financials have been among top outperformers during the Fed’s rate cutting cycles that end with a “soft landing.”
Slok looked at total returns of each sector during the two rate cut cycles that didn’t overlap with a recession, from July 1995 to January 1996 and from September 1998 to November 1998.
In the run-up to the third-quarter earnings season, an unusually large dichotomy took shape, according to Gina Martin Adams, Michael Casper and Wendy Soong at Bloomberg Intelligence.
Analysts kept lowering the bar for S&P 500 companies while management guidance implied a significantly stronger outlook — suggesting that companies should easily beat expectations, they noted.
S&P 500 net income growth is now forecast to rise a mere 4.2% in the third quarter, down from more than 7% growth expected in mid-July, thanks mostly to the energy sector.
Analysts’ souring outlook is not exclusive to energy, however,  as estimates for all sectors except for communication services fell, they said.
Currently, 37% of S&P 500 companies are expected to report lower earnings per share than the previous year this quarter, compared to 26.6% last quarter, BI concluded.

Corporate Highlights:
* BlackRock Inc. pulled in a record $221 billion of total client cash last quarter, pushing the world’s largest money manager to an all-time high of $11.5 trillion of assets as it seeks to become a one-stop shop for stocks, bonds and, increasingly, private assets.
* Bank of New York Mellon Corp.’s third-quarter profit topped expectations after a jump in asset values fueled a 5% increase in fee revenue.
* With the paralyzing labor strike now running for a full four weeks, Boeing Co. is taking a harder line with union representatives by filing unfair labor practice charges, saying the other side has bargained in bad faith and undermined its own deal.
* Humana Inc. released final quality ratings for private Medicare Advantage health plans.
* BP Plc expects its net debt to have risen in the third quarter due to lower refining margins and changes to the timing of asset sales.

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 0.1%
* The Dow Jones Industrial Average rose 1%
* The MSCI World Index rose 0.6%
* The Russell 2000 Index rose 2.1%
* Bloomberg Magnificent 7 Total Return Index fell 1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was unchanged at $1.0934
* The British pound was little changed at $1.3066
* The Japanese yen fell 0.4% to 149.15 per dollar
Cryptocurrencies
* Bitcoin rose 5.5% to $63,022.34
* Ether rose 3.8% to $2,457.29
Bonds
* The yield on 10-year Treasuries advanced three basis points to 4.09%
* Germany’s 10-year yield was little changed at 2.27%
* Britain’s 10-year yield was little changed at 4.21%
Commodities
* West Texas Intermediate crude fell 0.4% to $75.58 a barrel
* Spot gold rose 1% to $2,656.29 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely weekend everyone.

Be magnificent!

Shab
” You will never win if you never begin.”– Helen Rowland

Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.

340A – 730 View Street
Victoria BC  V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828