October 2, 2024, Newsletter

Dear Friends,

Tangents:

October2, 1608: Hans Lippershey applies for patent for first known early telescope in the Netherlands.
October 2, 1959: “The Twilight Zone” debuted on CBS. Go to article >>

1950: Peanuts comic strip debut.
1968: Redwood National Park established.

Mahatma Gandhi, b. 1869.
Groucho Marx, b. 1890.
Graham Greene, writer, b. 1904.
Sting, musician, b. 1951.

Who will see today’s annular solar eclipse?
An annular solar eclipse will create a “ring of fire” phenomenon in the sky over parts of South America today. A partial eclipse will also appear over Hawaii. Enjoy, sky-gazers!

Nintendo’s first museum offers a nostalgic trip back in video game time
Japan’s new Nintendo Museum takes visitors through the levels of the company’s 135-year history with an exhibition that includes rare consoles and prototypes. Take a look inside.

Humanity faces a ‘catastrophic’ future if we don’t regulate AI, ‘Godfather of AI’ Yoshua Bengio says
Yoshua Bengio played a crucial role in the development of the machine-learning systems we see today. Now, he says that they could pose an existential risk to humanity. Read More.

In a 1st, DNA analysis reveals identity of captain cannibalized during ill-fated Franklin expedition
Scientists have discovered the identity of a cannibalized victim who sailed on the doomed Northwest Passage expedition of 1845 to 1848. Read More

‘Secret teachings’ about ritual Samurai beheading revealed in newly translated Japanese texts
Four newly translated Japanese texts describe how ritual samurai beheadings were supposed to take place during the Edo period and later.
Full Story: Live Science (10/2)

32 alien planets that really exist
Beyond our solar system, countless alien worlds of lava, ice, water and noxious gas swirl through the cosmos. Here are some of the strangest exoplanets that scientists have discovered so far.
Read More.

32 alien planets that really exist
Beyond our solar system, countless alien worlds of lava, ice, water and noxious gas swirl through the cosmos. Here are some of the strangest exoplanets that scientists have discovered so far.
Read More.

PHOTOS OF THE DAY

Hong Kong, China
Fireworks illuminate the sky over Victoria Harbour to celebrate the 75th anniversary of China’s National Day
Photograph: Lam Yik/Reuters

Bangkok, Thailand
People perform a lion dance at a shrine to honour Chinese deities on the eve of the annual vegetarian festival. During the nine-day period, people will abstain from consuming meat to cleanse their body and mind
Photograph: Rungroj Yongrit/EPA

​​​​​​​Hastings, UK
‘Leigh Dyer’s steel sculpture The Landing peering above the horizon after an early moonrise.’
Photograph: Martin Ruffin
Market Closes for October 2^nd, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1990, Japan’s benchmark Nikkei 225 surged by a then-record 13.2%, on rumors the government would intervene to stop the crashing market from falling further. The move proved to be a “dead-cat bounce.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.1% at 24,001.55 in Toronto.
The move follows the previous session’s increase of 0.1%.
Today, financials stocks led the market lower, as 7 of 11 sectors lost; 122 of 223 shares fell, while 100 rose.
Royal Bank of Canada contributed the most to the index decline, decreasing 0.7%.
Parex Resources Inc. had the largest drop, falling 2.4%.
Insights
* This year, the index rose 15%, heading for the best year since 2021
* The index advanced 25% 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 28.4% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 0.4% in the past 5 days and rose 2.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.2 on a trailing basis and 16.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.81t
* 30-day price volatility rose to 9.71% compared with 9.70% in the previous session and the average of 11.94% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -22.9498| -0.3| 15/12
Consumer Staples | -13.5294| -1.4| 4/7
Industrials | -12.0554| -0.4| 12/15
Communication Services | -6.2439| -0.9| 0/5
Real Estate | -4.3011| -0.8| 4/16
Utilities | -3.9823| -0.4| 5/10
Health Care | -0.8194| -1.1| 0/4
Consumer Discretionary | 3.1521| 0.4| 5/6
Materials | 6.9780| 0.2| 25/26
Energy | 7.7972| 0.2| 23/18
Information Technology | 13.5173| 0.7| 7/3
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
RBC | -11.6700| -0.7| -32.8| 23.8
TD Bank | -8.0570| -0.8| 114.9| -0.5
Canadian Pacific Kansas | -5.9990| -0.8| -44.4| 7.4
Constellation Software | 3.9260| 0.7| -40.8| 33.3
CIBC | 4.5480| 0.9| -54.4| 29.0
Shopify | 7.1910| 0.8| -47.7| 3.6
US
By Cristin Flanagan
(Bloomberg) — Treasuries slid and the US dollar climbed after stronger-than-expected jobs numbers dampened Wall Street’s confidence that the Federal Reserve’s next interest-rate cut would be a big one.
Ten-year yields closed in on 3.8% after hitting a low of 3.69% in the prior session amid a flare-up of tensions in the Middle East.
The dollar reached nearly a two-week high after the labor readout as traders pondered the scope of the Fed’s next move.
Data Wednesday showed US companies added more jobs than expected last month, at odds with other indicators that show a cooling labor market.
Friday’s nonfarm payrolls numbers will be the next critical gut check on the health of the US economy.
“Today’s ADP employment number surprised to the upside, suggesting the labor market is bending but not breaking,” said Chris Larkin at E*TRADE from Morgan Stanley. “Friday’s monthly jobs report will have the final word on the current jobs picture, and more than likely, on near-term market sentiment.”
That left stocks struggling to buck the last of Tuesday’s risk-off mood as updates from the Mideast slowed.
The S&P 500 ended the day little changed while the Nasdaq 100 rose 0.1% as traders balanced the data against disruptions from a dockworkers’ strike at key US ports and the destruction of Hurricane Helene.
The jobs report won’t take a half point cut off the table, according to Bank of America Corp. strategists led by Meghan Swiber.
“Even if the labor market surprises to the strong side, pricing will still maintain optionality,” they wrote. To Marc Rowan, the chief executive officer of Apollo Global Management Inc., the Fed’s aggressive policy easing threatens to overstimulate the economy.
“It is not clear we need more rate cuts,” he said in an interview with Bloomberg Television, pointing to ready financing and rising real estate prices.
Richmond Fed President Thomas Barkin took a different view, saying it was too early for the central bank to declare victor over rising prices. “While we have made real progress — there remains significant uncertainty on both inflation and employment,” he said.
Traders are hoping tensions in the Middle East will fade into the background — much as they did in April — even after
Israel vowed to retaliate against a missile barrage from Iran.
President Joe Biden urged Israel to hold off from attacking Iran’s nuclear facilities.
Early gains for oil were trimmed by an unexpected rise in US inventories that counterbalanced the unrest.
WTI crude traded around $71 a barrel.
“Clearly there is a lot of uncertainty,” Anna Rosenberg, head of geopolitics at Amundi Asset Management, told Bloomberg Television. “The market is still very much operating in the base-case expectation that it remains more or less contained and doesn’t spiral out in an all-out war. And I think right now, that is the right thing to do.”
For stock bulls keeping crude costs in check will be key.
“As long as oil prices remain below $100 per barrel and corporate profits remain strong, that is supportive of higher stock prices,” according to Mary Ann Bartels, chief investment strategist at Sanctuary Wealth.  She expects the S&P 500 to reach 6,000 before the end of the year, “as interest rates continue to move lower and the consumer remains strong and is still spending.”
In company news, shares of Humana Inc. plunged after a drop in the health insurer’s Medicare quality ratings while Nike Inc.’s stock slid after the athletic wear company withdrew its
full-year sales guidance.
Tesla Inc. fell 3.5% after its quarterly vehicle sales disappointed.
A drop in the Japanese yen deepened in the US session as the dollar strengthened.
Comments from Prime Minister Shigeru Ishiba, who said conditions weren’t right for the Bank of Japan to move again following two interest rate hikes earlier this year, sparked the move.
Chinese stocks listed in Hong Kong jumped the most in almost two years after Beijing followed other major cities in relaxing home purchase rules. The massive stimulus efforts announced by China’s leaders last week turbocharged local assets and helped lift markets overseas.

Key events this week:
* Fed speakers include Richmond’s Thomas Barkin, Cleveland’s Beth Hammack, St. Louis’s Alberto Musalem and Fed Governor Michelle Bowman on Wednesday
* US nonfarm payrolls, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4:01 p.m. New York time
* The Nasdaq 100 rose 0.1%
* The Dow Jones Industrial Average was little changed
* The MSCI World Index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.1051
* The British pound was little changed at $1.3273
* The Japanese yen fell 2% to 146.45 per dollar
Cryptocurrencies
* Bitcoin fell 0.8% to $60,278.13
* Ether fell 3.1% to $2,376.05
Bonds
* The yield on 10-year Treasuries advanced five basis points to 3.78%
* Germany’s 10-year yield advanced six basis points to 2.09%
* Britain’s 10-year yield advanced eight basis points to 4.03%
Commodities
* West Texas Intermediate crude rose 1.6% to $70.98 a barrel
* Spot gold fell 0.2% to $2,658.86 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Rob Verdonck, Winnie Hsu, Margaryta Kirakosian and Allison McNeely.
Have a lovely evening everyone.

Be magnificent!

As ever,

Carolann
Some things have to be believed to be seen. –Ralph Hodgson, 1871-1962.

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 (Text Only)
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com