October 14, 2021 Newsletter

Dear Friends,

Tangents:
On Oct. 14, 1964, civil rights leader Martin Luther King Jr. was named winner of the Nobel Peace Prize.  Go to article »
 
e.e. cummings, poet, b. 1894
William Penn, founder Pennsylvania, b.1644.
Dwight Eisenhower, 34^th US President, b. 1890.
1960~Peace Corps proposed.

Billions of years ago, Venus and Earth were both piping hot. Had things been a bit different, Earth might never have become livable, a new study finds.

A fish known as a ‘living fossil’ has been found in Kansas for the first time.  How it got there is still a mystery.

We’re drowning in a sea of salt, and the FDA says we have to help save ourselves.  Reducing our salt intake will be harder than it seems, though.

I hope I never recover from this. I hope that I can maintain what I feel now.  William Shatner, otherwise known as Captain Kirk from the original “Star Trek,” after hitching a ride on a suborbital spacecraft. The 90-year-old is now the oldest person ever to go to space.

Astronomers get a look at the death of our solar system.

A partially destroyed Banksy painting sold at auction on Thursday at Sotheby’s in London for more than 18 times what it went for just three years ago. It’s the most expensive work by the artist to sell at auction ever. The piece, then called Girl with Balloon, made headlines in 2018 when it self-destructed immediately after selling at Sotheby’s.   

PHOTOS OF THE DAY
People walk among the autumn leaves on the grounds of Stormont Estate in Belfast
CREDIT: BRIAN LAWLESS/PA WIRE
Frogs stand in a pond in a frog farm in Pierrelatte, south of Lyon. French people eat around 4,000 tons of frogs each year, according to the Food Safety Agency.
CREDIT: JEFF PACHOUD / AFP
Cyclists starts from Sassi di Matera during the seventh stage of the Giro d’Italia 2020 cycling race, a 143-kilometer route between Matera and Brindisi 
CREDIT:LUCA BETTINI/AFP
A fisherman watches a Meteor during the Draconid meteor shower over Howick rocks in Northumberland. The Draconid meteor shower occurs in October in the Northern hemisphere and tends to be a less active meteor shower
CREDIT: OWN HUMPHREYS/PA WIRE

Market Closes for October 14^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1980, the IPO boom of the 1980s got off to a roaring start as Genentech went public at an initial offering price of $35.00. 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 Natasha Abellard
(Bloomberg) — Canadian stocks climbed for a seventh straight day as better-than-estimated U.S. earnings boosted risk sentiment. Consumer discretionary shares led the rally. The S&P/TSX Composite rose 1% in Toronto, advancing to the highest closing level since Sept. 3. Brookfield Asset Management contributed the most to the index gain, increasing 1.8%. Aritzia had the largest increase, rising 17.2%. Today, 174 of 234 shares rose, while 55 fell; 10 of 11 sectors were higher, led by financial stocks.
Insights
* In the past year, the index had a similar or greater gain 18 times. The next day, it advanced 14 times for an average 0.4% and declined four times for an average 0.5%
* This year, the index rose 19%, heading for the best year in at least 10 years
* So far this week, the index rose 2%, heading for the biggest advance since the week ended March 12
* The index advanced 27%in the past 52 weeks. The MSCI AC Americas Index gained 28% in the same period
* The S&P/TSX Composite is 0.4%below its 52-week high on Sept. 7, 2021 and 35% above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 3.1% in the past 5 days and rose 1.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.8 on a trailing basis and 16.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.25t
* 30-day price volatility rose to 10.38% compared with 10.08% in the previous session and the average of 8.74% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 59.1912| 0.9| 24/4
* Energy | 39.9423| 1.4| 21/2
* Materials | 31.1839| 1.3| 45/9
* Industrials | 27.4228| 1.2| 20/10
* Information Technology | 17.3822| 0.7| 13/2
* Consumer Discretionary | 11.3629| 1.5| 11/2
* Communication Services | 8.8475| 0.9| 4/3
* Utilities | 2.8116| 0.3| 12/3
* Health Care | 2.6182| 1.3| 9/0
* Consumer Staples | 0.7688| 0.1| 5/6
* Real Estate | -0.0604| 0.0| 10/14
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Brookfield Asset | | | |
* Management | 13.1600| 1.8| -40.1| 37.7
* Royal Bank of | | | |
* Canada | 11.8700| 0.9| 177.9| 24.2
* Canadian Natural | | | |
* Resources | 11.8500| 2.9| -53.5| 68.2
* Ballard Power | | | |
* Systems | -1.0580| -3.0| 70.5| -34.7
* Brookfield | | | |
* Renewable Partners | -1.6170| -2.3| -5.7| -14.0
* Cameco | -1.6560| -1.9| -27.6| 83.5

US
By Rita Nazareth and Nathan Hager
(Bloomberg) — The stock market had its best day since March as better-than-estimated corporate earnings and economic reports outweighed fears that inflation pressures and supply-chain snarls could crimp growth. All major groups in the S&P 500 advanced. The KBW Bank Index — which has surged almost 40% in 2021 — pushed higher as results from some of the largest financial institutions beat Wall Street’s estimates. UnitedHealth Group Inc. led gains in the Dow Jones Industrial Average as the health-care giant raised its outlook for the year, while chipmakers climbed on a bullish forecast from Taiwan Semiconductor Manufacturing Co. Corporate profits have been a boon for the equity market throughout the pandemic. Since March 2020, the S&P 500 has risen each quarter, advancing 4% on average over the six-week stretch. Pent-up demand should drive revenue growth, while pricing power and operating leverage should help offset inflationary pressures, according to Mark Haefele, chief investment officer at UBS Global Wealth Management. “Even though there are cost pressures and supply concerns, the other side of this is that business is strong,” said Kevin Caron, senior portfolio manager at Washington Crossing Advisors. “To the extent that producers can pass on to consumers higher prices — which it seems like they’re able to do — we’re seeing stronger profits, which is helping to give a boost to stocks.” Applications for U.S. state unemployment benefits fell to the lowest since March 2020, showing employers are hanging onto their workers in a tight labor market.  Prices paid to American producers rose at the slowest pace of the year amid cooling costs of services.

Some corporate highlights:
* Bank of America Corp. beat earnings projections as fees climbed at its dealmaking unit. Wells Fargo & Co.’s profit topped estimates, but expenses were higher than anticipated and loans fell.
Morgan Stanley’s investment bankers scored their best quarter ever amid a torrid pace of dealmaking. Citigroup Inc.’s stock-trading revenue surged 40%.
* Walgreens Boots Alliance Inc.’s earnings and sales beat estimates as the pandemic and the immunization campaign continued to have a powerful effect on the drugstore giant’s results.
* Jana Partners, which has pushed for Macy’s Inc. to spin off its online operations, has taken a stake in the department-store operator, according to a news report.

Here are a few events to watch this week:
* 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 1.7% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.9%
* The Dow Jones Industrial Average rose 1.6%
* The MSCI World index rose 1.4%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.1596
* The British pound rose 0.1% to $1.3673
* The Japanese yen fell 0.4% to 113.67 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 1.51%
* Germany’s 10-year yield declined six basis points to -0.19%
* Britain’s 10-year yield declined five basis points to 1.04%
Commodities
* West Texas Intermediate crude rose 1.2% to $81.40 a barrel
* Gold futures rose 0.2% to $1,798.10 an ounce
–With assistance from Andreea Papuc, Cecile Gutscher and Lu Wang.
Have a wonderful evening.

Be magnificent!
As ever,

Carolann

That man is in the right who is most closely in league with the future.-Henrik Ibsen, 1828-1906

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