October 13, 2021 Newsletter

Dear Friends,

Tangents:
On Oct. 13, 1943, Italy declared war on Germany, its one-time Axis partner.  Go to article »
 
Paul Simon, musician, b.1941

Archaeologists uncovered the world’s largest wine factory from the Byzantine period in Israel.  We only have one question: Did it have any wine?

A pair of carved garden ornaments turned out to be ancient Egyptian relics worth $265K.  Time to give another look to those stone statues languishing in the yard.

Al Capone’s stuff sold for $3 million at auction. (h/t Ellen Kominers)

William Shatner is now the oldest person to go to space.

NUMBER IN THE NEWS:  14
People simultaneously in space briefly in September: four amateurs on a private flight, three astronauts working on China’s space station, and seven astronauts aboard the International Space Station.

PHOTOS OF THE DAY

Mist floats over the quintessentially English village of South Harting in West Sussex at dawn this morning
CREDIT: CHRIS GORMAN BIG LADDER

Mice enjoying the beginning of autumn. Wildlife photographer captures stunning images of mice enjoying first signs of autumn with pair taking cover inside an apple
CREDIT: JAM PRESS / DAVE NEWMAN’S SPECIAL PHOTOGRAPHY

Scenic Railroad is seen during colorful fall foliage in New Hampshire
CREDIT: TAYFUN COSKUN/ANADOLU AGENCY VIA GETTY IMAGES

The image of Our Lady of Fatima in the Candlelight Procession during the October Pilgrimage in the Shrine of Fatima, Portugal
CREDIT: PAULO CUNHA/EPA-EPE/SHUTTERSTOCK

Market Closes for October 13^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1691, Sir Stephen Evance incorporated the Company for Making Hollow Sword Blades in the North of England, one of the earliest companies to issue stock—and the predecessor of the South Sea Co., whose own stock caused a speculative fever that overheated and nearly destroyed the British financial system in 1720.
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks rose to their highest level in nearly a month as a rally in technology and materials shares bolstered the benchmark index. The S&P/TSX Composite rose for the sixth day, climbing 0.9 percent, or 181.35 to 20,618.47 in Toronto. The index advanced to the highest closing level since Sept. 15. Today, information technology stocks led the market higher, as 10 of 11 sectors gained; 177 of 234 shares rose, while 55 fell. Shopify Inc. contributed the most to the index gain, increasing 2.9 percent.  Eldorado Gold Corp. had the largest increase, rising 9.3 percent.
Insights
* This year, the index rose 18 percent, heading for the best year since 2019
* The index advanced 25 percent in the past 52 weeks. The MSCI AC Americas Index gained 25 percent in the same period
* The S&P/TSX Composite is 1.3 percent below its 52-week high on Sept. 7, 2021 and 33.7 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 2.2 percent in the past 5 days and was little changed 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 15.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.22t
* 30-day price volatility rose to 10.08 percent compared with 9.70 percent in the previous session and the average of 8.54 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 57.4458| 2.5| 12/3
* Materials | 51.7223| 2.2| 48/7
* Industrials | 30.6316| 1.3| 25/5
* Utilities | 12.0987| 1.3| 16/0
* Real Estate | 10.8300| 1.7| 24/1
* Energy | 10.6421| 0.4| 10/11
* Consumer Staples | 6.5615| 0.9| 8/5
* Communication Services | 4.8656| 0.5| 4/3
* Consumer Discretionary | 1.0667| 0.1| 8/5
* Health Care | 0.9288| 0.5| 8/1
* Financials | -5.4265| -0.1| 14/14
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 38.9700| 2.9| -45.7| 21.1
* Canadian National | 12.9500| 2.1| -55.9| 5.6
* Barrick Gold | 8.1450| 2.8| -16.6| -16.4
* Fairfax Financial | | | |
* Holdings | -2.4400| -2.5| 14.9| 16.3
* CIBC | -2.7460| -0.6| -63.6| 32.9
* TD Bank | -8.2150| -0.8| 99.4| 18.2

US
By Rita Nazareth and Kamaron Leach
(Bloomberg) — Technology shares climbed amid lower Treasury yields after data showing inflation is running hot lifted companies seen as better equipped to pass on higher costs to consumers without harming their businesses. Traders also assessed minutes of the Federal Reserve’s latest policy meeting, with officials broadly agreeing they should start reducing stimulus in mid-November or mid-December amid increasing concern over inflation. Central bankers discussed an illustrative tapering path featuring “monthly reductions in the pace of asset purchases, by $10 billion in the case of Treasury securities and $5 billion in the case of agency mortgage-backed securities.” The tech-heavy Nasdaq 100 outperformed major equity benchmarks, while the NYSE FANG+ Index of giants such as Amazon.com Inc. and Google’s parent Alphabet Inc. climbed about 1%.  The S&P 500 rebounded, following a three-day drop. Ten-year yields remained below 1.6%. The two-year rate — which is more sensitive to policy moves — rose.
     Delta Air Lines Inc. led losses in U.S. carriers after warning that rising fuel costs will threaten earnings this quarter. Prices paid by U.S. consumers rose in September by more than forecast, underscoring inflationary pressures. The Biden administration is trying to relieve supply-chain bottlenecks ahead of the Christmas shopping season, but officials acknowledge their options are limited.  Unprecedented shipping challenges, materials shortages, high commodities prices and rising wages have driven up costs for producers. Many have passed a portion of those costs to customers, leading to more persistent inflation. “Wednesday’s still elevated consumer-price index marks about six-months’ worth of hot inflation data — suggesting that inflation is  not as transitory as many investors previously expected,” said Nancy Davis, founder of the Greenwich, Connecticut-based firm Quadratic Capital Management. “The overall inflation story is being driven by supply-chain disruptions and a swift rise in prices, due to the labor shortage.”

Some corporate highlights:
* JPMorgan Chase & Co.’s dealmakers posted their best quarter yet, riding what’s on track to be a record year for mergers and acquisitions. Still, shares fell as consumer and commercial loan growth remained challenged.
* American Express Co. and other credit-card issuers tumbled as JPMorgan attributed weakness in its card business to rising costs on marketing and promotions, sparking concern over heightened competition.

Here are a few events to watch this week:
* Bank of America Corp., Morgan Stanley and Citigroup Inc. report earnings on Thursday
* U.S. initial jobless claims, PPI on Thursday
* Goldman Sachs Group Inc. reports earnings on Friday
* U.S. business inventories, University of Michigan consumer sentiment, retail sales on Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.8%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.5%
* The Russell 2000 Index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.5%
* The euro rose 0.5% to $1.1593
* The British pound rose 0.5% to $1.3660
* The Japanese yen rose 0.3% to 113.29 per dollar
Bonds
* The yield on 10-year Treasuries declined four basis points to 1.54%
* Germany’s 10-year yield declined four basis points to -0.13%
* Britain’s 10-year yield declined six basis points to 1.09%
Commodities
* West Texas Intermediate crude fell 0.1% to $80.54 a barrel
* Gold futures rose 1.9% to $1,793.30 an ounce
–With assistance from Andreea Papuc, Cecile Gutscher and Sophie Caronello.
Have a wonderful evening.

Be magnificent!

As ever,

Carolann

Courage is contagious.  When a brave man takes a stand, the spines of others are stiffened. -Billy Graham, 1918-2018.

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