October 14, 2020 Newsletter

Dear Friends,

Tangents:
William Penn, founded PA, b. 1644
Dwight Eisenhower, 34^th US President, b. 1890
e.e. cummings, b. 1894

On Oct. 14, 1964, civil rights leader Martin Luther King Jr. was named winner of the Nobel Peace Prize. Go to article »

Famed Chef’s Take on Cacio e Pepe Pasta Improves a ‘Perfect’ Dish.  Yotam Ottolenghi tackles a classic.

These Handmade Driving Machines Are Like Nothing Else on the Road–Bloomberg Pursuits.
PHOTOS OF THE DAY

The night sky above Battle Abbey.
Over the next week debris cast by the trail of Halley’s Comet will be visible in the night sky in the form of the Orionid meteor shower.
CREDIT: JIM HOLDEN

Buddhist monks from Bhutan perform the Black Hat mask dance at the Bhutan temple in Bodhgaya.
CREDIT: GETTY IMAGES

Paragliders rise above the morning Autumn mist over Devils Dyke just north of Brighton as dryer more settled weather is forecast for later in the week throughout Britain.
CREDIT: SIMON DACK/ALAMY LIVE NEWS
Market Closes for October 14^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1980, the decade’s IPO boom got off to a roaring start as Genentech went public at an initial offering price of $35. It closed the day’s trading at $71.25, a 103.6% gain, one of the highest first-day returns for a stock in history.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equities fell on Wednesday, extending their losses into second day, led by technology companies.
The S&P/TSX Composite index fell 0.3% in Toronto, after earlier rising as much as 0.4%. Tech and health-care stocks fell the most, while materials outperformed. Wealthsimple Inc. raised money from an investor group led by Technology Crossover Ventures that will give the Canadian investment firm unicorn status. The Toronto-based startup closed a fresh round of C$114 million ($87 million) in funding led by Menlo Park, California-based TCV that values it at more than $1 billion, the company said in a statement Wednesday.
Commodities
* Western Canada Select crude oil traded at a $9.65 discount to West Texas Intermediate
* Spot gold rose 0.5% to $1,901.65 an ounce
FX/Bonds
* The Canadian dollar fell slightly to C$1.3145 per U.S. dollar
* The 10-year government bond yield fell to 0.582%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.3 percent, or 55.43 to 16,455.40 in Toronto. The move was the biggest since falling 1.1 percent on Oct. 6.
Shopify Inc. contributed the most to the index decline, decreasing 2.2 percent. Trillium Therapeutics Inc. had the largest drop, falling 5.3 percent.
Today, 128 of 223 shares fell, while 92 rose; 8 of 11 sectors were lower, led by information technology stocks.
Insights
* This year, the index fell 3.6 percent, heading for the worst year since 2018
* The index was little changed in the past 52 weeks. The MSCI AC Americas Index gained 18 percent in the same period
* The S&P/TSX Composite is 8.4 percent below its 52-week high on Feb. 20, 2020 and 47.3 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 1.4 percent in the past 5 days and rose 0.6 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 25.2 on a trailing basis and 23.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.53t
* 30-day price volatility fell to 15.55 percent compared with 15.71 percent in the previous session and the average of 14.52 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | -32.3362| -1.8| 2/8
Financials | -27.5426| -0.6| 5/21
Energy | -8.3381| -0.5| 10/13
Communication Services | -7.2068| -0.8| 0/7
Real Estate | -4.8235| -0.9| 4/23
Health Care | -2.7168| -1.6| 1/9
Utilities | -2.3294| -0.3| 6/9
Consumer Staples | -2.1320| -0.3| 4/7
Consumer Discretionary | 0.3179| 0.1| 7/6
Industrials | 5.2815| 0.3| 13/14
Materials | 26.3830| 1.0| 40/11
US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — Stocks dropped after Treasury Secretary Steven Mnuchin down played the chances of striking a stimulus deal before the election.
Traders also parsed earnings from big banks, with Wells Fargo & Co. tumbling 6% after posting a profit slump and warning that net interest income could “get a little bit softer” in 2021. Bank of America Corp. slid amid an increase in trading revenue that was just a fraction of its competitors’ gains, while Goldman Sachs Group Inc. outperformed after earnings per share jumped to a record that was almost twice as high as analysts predicted. Energy stocks joined a rally in oil, with Concho Resources Inc. soaring 10% on a news report that ConocoPhillips is in talks to acquire the company.
Mnuchin said at a conference that getting a stimulus agreement “before the election and executing on that would be difficult.” His remarks came after another in a long series of calls with House Speaker Nancy Pelosi that have failed to seal a deal. While he hoped for bipartisan support for Senate Majority Leader Mitch McConnell’s latest idea — a vote on a narrow bill next week to help small businesses — Democratic leaders have no appetite for piecemeal measures now.
“This has been an ongoing drama,” said Paul Nolte, portfolio manager at Kingsview Investment Management. “They’re getting close, they’re not getting close, we’re still talking, we’re not talking. The latest twist I heard is nothing is going to get done until the election. That’s why I think you’re getting the market selling off a little bit.”
Meanwhile, the Joe Biden campaign on Wednesday denied a New York Post report that said the former vice president met with a senior official from a Ukrainian energy firm that was at the center of a controversy over the dismissal of a prosecutor investigating the company.
     Here are some key events coming up:
* Morgan Stanley’s earnings are scheduled for Thursday.
* U.K. Prime Minister Boris Johnson set a deadline of Thursday to thrash out the outline of a European Union trade deal.
* European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fundand the World Bank Group. Through Oct. 18.

These are some of the main moves in markets:
Stocks
* The S&P 500 dipped 0.7% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.1%.
* The MSCI Asia Pacific Index decreased 0.1%.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.2%.
* The euro advanced 0.1% to $1.1753.
* The Japanese yen appreciated 0.4% to 105.08 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 0.72%.
* Germany’s 10-year yield dipped two basis points to -0.58%.
* Britain’s 10-year yield decreased two basis points to 0.22%.
Commodities
* The Bloomberg Commodity Index advanced 0.6%.
* West Texas Intermediate crude rose 2.1% to $41.03 a barrel.
* Gold added 0.6% to $1,903.40 an ounce.

–With assistance from Albertina Torsoli, Adam Haigh, Todd White, Lynn Thomasson and Claire Ballentine.
Have a great night.

Be magnificent!
As ever,

Carolann

Nature does not hurry, yet everything is accomplished. -Lao Tzu

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
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