October 20, 2021 Newsletter

Dear Friends,

Tangents: Hunter’s Full Moon of 2021 is tonight.

On Oct. 20, 1973, in the so-called Saturday Night Massacre, President Nixon abolished the office of special Watergate prosecutor Archibald Cox, accepted the resignation of Attorney General Elliot L. Richardson and fired Deputy Attorney General William B. Ruckelshaus.  Go to article »

Elon Musk will become a trillionaire with SpaceX, Morgan Stanley says. 

This atomic clock will transform deep space exploration. 
See Nicole Kidman as Lucille Ball in first trailer for ‘Being the Ricardos’.  Featuring the iconic grape-stomping scene.
The latest supply chain shortage: white truffles and blue paint.
PHOTOS OF THE DAY

Visitors to Expo 2020 Dubai watch the spectacular four-storey indoor waterfall inside DP World’s Flow Pavilion. The expo, which was delayed by a year by the pandemic, runs until March 2022
CREDIT: DP World

Members of the Korean Confederation of Trade Unions, dressed as people from the Netflix series Squid Game, during a rally against the government’s labour policy
CREDIT: Sanghwan Jung/Rex/Shutterstock

Devotees pour water on to a Buddha figurine as they worship at the holy Shwedagon Pagoda on the full moon day of Thadingyut, which marks the end of Buddhist lent
CREDIT: Lynn Bo Bo/EPA

Market Closes for October 20^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1803, the Senate ratified the Louisiana Purchase Treaty, under which the U.S. paid France less than 3 cents an acre for 828,000 square miles of territory stretching from the Mississippi River to the Rockies and from the Gulf of Mexico to the Canadian border. With the stroke of a pen, the U.S. nearly doubled in size. The U.S. financed the deal by borrowing $11.25 million in 6% bonds from European investors.
Canada
By Natasha Abellard
(Bloomberg) — Canadian stocks rallied for an 11th straight day as positive earnings reports outweighed any inflation concerns. The S&P/TSX Composite gained 0.5% in Toronto. Financials stocks led the market higher, as 7 of 11 sectors gained; 140 of 233 shares rose, while 86 fell. Canadian National Railway contributed the most to the index gain, increasing 5%. Capstone Mining Corp. had the largest increase, rising 7.1%.
Insights
* This year, the index rose 22%, heading for the best year in at least 10 years
* This month, the index rose 5.6%, heading for the biggest advance since November 2020
* 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. 20, 2021 and 37.4% above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 2.8% in the past 5 days and rose 5.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.1 on a trailing basis and 16.5 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$3.32t
* 30-day price volatility rose to 10.51% compared with 10.49% in the previous session and the average of 9.49% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 42.9860| 0.6| 20/7
* Industrials | 40.7947| 1.7| 16/14
* Energy | 12.1481| 0.4| 20/3
* Materials | 5.2466| 0.2| 40/14
* Real Estate | 4.9214| 0.8| 15/7
* Utilities | 2.4979| 0.3| 7/7
* Communication Services | 0.3233| 0.0| 4/3
* Consumer Discretionary | -0.3001| 0.0| 4/9
* Health Care | -0.4775| -0.2| 4/5
* Information Technology | -2.9787| -0.1| 5/9
* Consumer Staples | -3.9540| -0.5| 5/8
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian National | 33.9100| 5.2| 121.0| 15.4
* Brookfield Asset | | | |
* Management | 10.6400| 1.5| -24.6| 40.9
* Bank of Nova Scotia| 7.3400| 1.1| -50.8| 19.0
* Shopify | -2.1710| -0.2| -29.9| 27.6
* Teck Resources | -2.3990| -2.1| -0.6| 52.6
* Couche-Tard | -3.1780| -1.2| -4.0| 10.0
US
By Vildana Hajric and Nathan Hager
(Bloomberg) — U.S. equities continued their rally into a sixth day, putting the benchmark S&P 500 within reach of an all-time high. The S&P 500 gained 0.4% as traders weighed company earnings against risks from inflationary pressures. Verizon Communications Inc. and Anthem Inc. were higher after better-than-expected results. Meanwhile, Novavax Inc. plunged on another vaccine delay, and Netflix Inc. was lower after an underwhelming outlook. Tesla Inc. will report after markets close. The gains come on the heels of the S&P 500’s best start to an earnings season in the last two years with the index gaining about 3.6% in the first week. Solid corporate results have helped counter concerns stemming from elevated inflation, driving stocks higher.
Elsewhere, crypto shares also rose as Bitcoin surged past a record. “What we see is an earnings season that’s likely to be more volatile than the last several,” said Beata Kirr, co-head of investment strategies at Bernstein Private Wealth Management, on Bloomberg TV and Radio. The past couple quarters of have seen earnings expand 45% year over year, whereas consensus estimates for 2022 is a more moderate 9% year-over-year gain, she explained. “Now that’s still positive,” she said. “And that’s one of the fundamental underpinnings that’s really driving the equity market forward. ”The yield on the 10-year Treasury note was little changed as corporate earnings have taken some of the spotlight away from concerns about stagflation — the combination of lower growth and higher inflation. Still, clouds are gathering over the economic recovery in the face of higher energy costs, global supply-chain bottlenecks and reduced central bank support. The dollar continued to weaken against major peers on Wednesday as traders increased bets central banks around the world will raise interest rates before the Federal Reserve to combat price pressures. Governor Randal Quarles said the Fed is not “behind the curve” with its monetary policy and said he still views current price increases as “transitory.” Oil gained in New York as inventories fell. Base metals declined after China launched a blitz of measures to tackle the energy crisis.
Elsewhere, Congressional Democrats made headway in breaking a stalemate on the president’s multitrillion dollar tax and spending package. “The market is very much testing how equipped companies and the rest of the economy are to be able to manage this type of transition where we have a less aggressive Fed, less supportive
fiscal policy and more normal levels of economic growth,” Kara Murphy, chief investment officer at Kestra Investment Services, said. “There are definitely concerns out there, but for now risk assets seem to be brushing off those concerns.” In Europe, food and beverage companies rose after Nestle SA and Deliveroo Plc forecast faster growth, while retailers fell after Kering SA reported slowing sales at Gucci. In Asia, equities were mixed as traders continued to monitor the debt woes at China’s real-estate developers. China Evergrande Group said it has terminated discussions to sell its property-management arm and asked that its shares resume trading in Hong Kong on Thursday.

Events to watch this week:
* Earnings roll in, including from AT&T Inc., Barclays Plc and Tesla Inc.
* 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 0.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.1%
* The Dow Jones Industrial Average rose 0.4%
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.1652
* The British pound rose 0.2% to $1.3826
* The Japanese yen was little changed at 114.28 per dollar
Bonds
* The yield on 10-year Treasuries advanced one basis point to 1.65%
* Germany’s 10-year yield declined two basis points to -0.13%
* Britain’s 10-year yield declined two basis points to 1.15%
Commodities
* West Texas Intermediate crude rose 1.1% to $83.87 a barrel
* Gold futures rose 0.9% to $1,786.20 an ounce
–With assistance from Abigail Moses and Andreea Papuc.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

He who lives without discipline dies without honor. -Icelandic Proverb.

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