October 19, 2021 Newsletter

  Dear Friends,
 
Tangents:
Kanye West’s new name is Ye.
 
Saudi Arabia is about to out-Disney the Magic Kingdom with this theme park that sits atop a gigantic oil rig. (h/t Mike Smedley)
 
On Oct. 19, 1987, the stock market crashed as the Dow Jones Industrial Average plunged 508 points, or 22.6 percent in value – its second biggest percentage drop.  Go to article » 
PHOTOS OF THE DAY

Performers enact the Olympic flame handover ceremony for the Beijing 2022 Winter Olympics
Photograph: Alkis Konstantinidis/Reuters

Lava from the Cumbre Vieja volcano continues to flow, as seen from Tajuya on the Canary island of La Palma
Photograph: Susana Vera/Reuters

Visitors walk through lanterns at the royal culture festival at Gyeongbok Palace
Photograph: Lee Jin-man/AP

Princess Mako, the daughter of Crown Prince Akishino and Crown Princess Kiko, walks towards the Three Palace Sanctuaries to pray in the run-up to her marriage at the Imperial Palace
Photograph: Kyodo/Reuters
Market Closes for October 19^th, 2021
 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1853, in the wake of the collapse of the railroad investment-banking firm run by Simeon Draper, Wall Street crashed, and several brokerage firms went under.
Canada
By Natasha Abellard
(Bloomberg) — Canadian equities extended their hot streak, advancing for a 10th straight day on solid corporate earnings reports and lessened inflation concerns.
The S&P/TSX Composite climbed 0.5% in Toronto, a fresh record high for the index.
Health care stocks were the best performers, as 7 of 11 sectors gained; 150 of 234 shares rose, while 79 fell.
Shopify contributed the most to the index gain, increasing 1.2%.
Tilray Inc. had the largest increase, rising 15.7%.
Insights
* This year, the index rose 21%, heading for the best year in at least 10 years
* The index advanced 30% in the past 52 weeks. The MSCI AC Americas Index gained 32% in the same period
* The S&P/TSX Composite is 0%below its 52-week high on Oct. 19, 2021 and 36.8% above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 3.2% in the past 5 days and rose 2.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20 on a trailing basis and 16.4 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$3.31t
* 30-day price volatility rose to 10.49% compared with 10.41% in the previous session and the average of 9.44% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 34.2609| 0.5| 19/9
Information Technology | 27.7267| 1.2| 11/4
Energy | 15.0128| 0.5| 12/10
Health Care | 11.8049| 6.1| 9/0
Industrials | 5.9476| 0.2| 18/12
Materials | 5.5154| 0.2| 33/19
Real Estate | 5.4573| 0.8| 22/3
Communication Services | -0.0518| 0.0| 5/2
Consumer Staples | -0.5695| -0.1| 7/6
Consumer Discretionary | -1.0462| -0.1| 7/6
Utilities | -2.4387| -0.3| 7/8
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 17.6600| 1.2| -31.2| 27.8
TD Bank | 16.4300| 1.5| -53.6| 23.3
Bank of Nova Scotia | 8.3470| 1.2| -65.2| 17.7
Fortis | -2.7790| -1.5| 122.7| 6.7
Constellation | | | |
Software | -2.9830| -1.0| -14.3| 33.2
Teck Resources | -3.1750| -2.7| -4.8| 55.8
US
By Vildana Hajric and Kamaron Leach
(Bloomberg) — U.S. equities extended a rally on Tuesday as solid corporate results helped counter concerns stemming from elevated inflation.
The S&P 500 rose 0.7% as earnings at Travelers Cos. And Johnson & Johnson beat expectations while higher commodity and freight costs weighed on shares of Procter & Gamble Co.
Crypto  stocks were also higher as Bitcoin closed at a record following the launch of the first futures exchange-traded fund.
A fifth day of gains brings the benchmark index within half a percent away from an all-time high as the market grapples with the prospect of tighter monetary policy amid rising prices.
The dollar was weaker against major peers as traders raised bets central banks around the world would raise interest rates before the Federal Reserve.
Meanwhile, global bond yields were mixed with the U.S. 10-year Treasury yield higher at 1.64%.
“Another week of upbeat results could be the boost that bulls are after to recapture those record levels,” said Fiona Cincotta, senior financial markets analyst at City Index.

Investors are paying close attention to the earnings season to see how higher costs for energy and raw materials are affecting margins.
Crude oil in New York climbed in a volatile session after Russia signaled it may not give Europe extra natural gas without approval for the Nord Stream 2 pipeline.
Meanwhile, base metals took a breather on the race to record highs.
“This earnings season could be highly important for investors, as inflation, labor, supply, and currency risks settle in,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments.
“We will be particularly attuned to companies’ guidance on the path ahead and whether higher costs could reduce corporate margins.”
Fed Governor Christopher Waller said the central bank’s bond-buying program should begin tapering next month. However, he added interest-rate increases are probably “still some time off.”
The comments were the latest in a slew of speeches from Fed officials expected to try to calm market jitters this week.
“They’re probably going to be very careful and cautious on rate hikes because of the fact that they just don’t have enough information on the inflation front,” said Subadra Rajappa, managing director and head of U.S. rates strategy at Société Generale. “We didn’t see the market fully price in three hikes by the end of 2023. And now you’re going to see a little bit of adjustment based on what the Fed’s saying.”

Events to watch this week:
* Earnings roll in, including from AT&T Inc., Barclays Plc, Netflix Inc. and Tesla Inc.
* EIA crude oil inventory report, Wednesday
* China property prices, loan prime rates, Wednesday
* U.S. Conference Board leading index, U.S. existing home sales, jobless claims, Thursday
* Fed Chair Jerome Powell takes part in policy panel discussion, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.7% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.7%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index rose 0.7%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.2% to $1.1635
* The British pound rose 0.5% to $1.3792
* The Japanese yen was little changed at 114.34 per dollar
Bonds
* The yield on 10-year Treasuries advanced four basis points to 1.64%
* Germany’s 10-year yield advanced four basis points to -0.11%
* Britain’s 10-year yield advanced three basis points to 1.17%
Commodities
* West Texas Intermediate crude rose 0.5% to $82.84 a barrel
* Gold futures rose 0.2% to $1,770.10 an ounce
–With assistance from Nathan Hager.
 
Have a lovely evening.
 
Be magnificent!
As ever,
 
Carolann
 
Maybe this world is another planet’s hell. -Aldous Huxley, 1894-1963.
 
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