October 21, 2020 Newsletter

Dear Friends,

Tangents:
S.T. Coleridge, poet, b. 1772
Alfred Nobel, b. 1833
Dizzy Gillespie, b. 1717

1854:  Florence Nightingale with a staff of 38 nurses is sent to the Crimean War.
1967: Vietnam War protesters storm Pentagon.

On Oct. 21, 1879, Thomas Edison invented a workable electric light at his laboratory in Menlo Park, N.J. Go to article »

Enjoy this fall poem for Halloween (sound on!).

PHOTOS OF THE DAY

Avid surfer and filmmaker Spencer Frost, 25, took his friends Guy Williament, 27, and Fraser Dovell, 23, on a trip to Iceland to find the perfect wave. The trio had to wear extra-thick wetsuits to survive in the two-degree water – which was littered with icy obstacles. They had to wait for gaps in the storm and got dressed in -20 temperatures – and could only stay in the water for an hour before going hypothermic.
CREDIT: GUY WILLIMENT/SWNS

A Rothschild subspecies of Giraffe browse on ol-Kokwe Island on Lake Baringo where it now faces a threat from the rising waters of the lake that have already forced an evacuation of smaller species of wildlife like antelopes and warthog off the island due to habitat loss, near Marigat, Baringo county on the Kenyan Rift Valley.
CREDIT: TONY KARUMBA/AFP/GETTY IMAGES

Here’s a look at the fastest car in the world. Shelby SuperCars (SSC) North America has set a new top speed record for a production car, with its SSC Tuatara recording a two-way average of 316.11mph in Nevada. 
The runs took place on a seven-mile stretch of closed road in the desert near Las Vegas with British racing driver Oliver Webb at the wheel.
The supercar, built by Shelby SuperCars North America, hit a top speed of 331mph on the second run on October 10. However, for the record to stand the car must set a speed in both directions to account for the wind. The first run saw 301mph on the speedometer.
CREDIT: MEGA

Market Closes for October 21^st, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1929, William Peter Hamilton, editor of The Wall Street Journal and one of the leading advocates of the “Dow Theory” of technical analysis, predicted the coming demise of the bull market in a lead editorial entitled “The Turn in the Tide.” However, since Mr. Hamilton had already predicted the death of the bull market in January of 1927, as well as in both June and July of 1928, nobody listened. This time—if only by sheer luck—he turned out to be right, as the stock market crashed just three days later.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks fell Wednesday while U.S. shares fluctuated. The S&P/TSX Composite Index lost 0.3%, with five of 11 sectors lower. Industrials lagged behind as Canadian National Railway dipped 6.1% after 3Q earnings. Jagmeet Singh signaled his social-democratic lawmakers won’t back a Conservative push for a special committee to investigate alleged mishandling of Covid-19 spending, lowering the odds of a snap election in Canada. Oil and gasoline futures tumbled the most in more than two weeks after a U.S. government report showed swelling fuel stockpiles and slowing demand as the coronavirus pandemic rages. On the deal front, TD said Cogeco Communications’s acquisition of Quebec’s third-largest cable provider is “not the type of shareholder-friendly initiative” investors are looking for after the company rejected a takeover bid.
Commodities
* Western Canada Select crude oil traded at a $10.50 discount to West Texas Intermediate
* Spot gold rose 0.9% to $1,924.22 an ounce
FX/Bonds
* The Canadian dollar fell 0.1% to C$1.3139 per U.S. dollar
* The 10-year government bond yield edged higher to 0.613%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell for the fourth day, dropping 0.3 percent, or 43.03 to 16,230.23 in Toronto. The index dropped to the lowest closing level since Oct. 2. Today, industrials stocks led the market lower, as 5 of 11 sectors lost; 82 of 223 shares fell, while 139 rose. Canadian National Railway Co. contributed the most to the index decline, decreasing 6.1 percent. Ballard Power Systems Inc. had the largest drop, falling 6.5 percent.
Insights
* This month, the index rose 0.7 percent
* This year, the index fell 4.9 percent, heading for the worst year since 2018
* The index declined 1.1 percent in the past 52 weeks. The MSCI  AC Americas Index gained 14 percent in the same period
* The S&P/TSX Composite is 9.7 percent below its 52-week high on Feb. 20, 2020 and 45.3 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 1.4 percent in the past 5 days and rose 1.6 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.9 on a trailing basis and 23.4 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$2.49t
* 30-day price volatility fell to 13.42 percent compared with 14.42 percent in the previous session and the average of 14.97 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | -53.5784| -2.6| 11/17
Information Technology | -40.6157| -2.4| 2/8
Energy | -26.7025| -1.5| 4/19
Communication Services | -3.3215| -0.4| 1/5
Consumer Staples | -2.9376| -0.4| 7/4
Health Care | 3.6613| 2.2| 8/2
Utilities | 3.6710| 0.4| 10/6
Consumer Discretionary | 4.1754| 0.7| 10/3
Real Estate | 4.3168| 0.8| 22/4
Financials | 23.9471| 0.5| 22/4
Materials | 44.3620| 1.8| 42/10
US
By Sarah Ponczek and Casey Wagner
(Bloomberg) — U.S. stocks ended a volatile session slightly lower as the White House and Democrats neared an aid deal but signaled it’s unlikely to become law before the election. Treasury yields climbed and the dollar retreated. The S&P 500 Index closed lower after an up-and-down session that saw the index whipsawed by takes on the progress toward a deal. House Speaker Nancy Pelosi continued talks with White House representatives even as the odds remained long for a deal that could pass in the Senate. Small caps lagged behind. “You look at the trading today and it’s almost like watching a cat with a laser pointer,” Mark Hackett, chief of investment research at Nationwide, said by phone. “Pelosi comes out midday and says she’s excited about the deal, and then two minutes later says she doesn’t think a deal will get done, and the market’s reacting. Investors are fixated on the shiny object, which is the stimulus deal.”
Energy producers were among the worst performers as oil fell toward $40 a barrel in New York. Social media firms fared better after Snap Inc. reported strong earnings, with Twitter Inc. and Facebook Inc. both up more than 5% at one point. Of the 84 companies in the gauge that have reported earnings this season, only 10 have missed analyst profit forecasts. Tesla Inc. rose ahead of financial results later Wednesday. Netflix Inc. sank the most since March after subscribers fell short of predictions. A surge in copper lifted materials producers. The U.S. 10-year yield broke above 0.8% to the highest since June and European yields also rose after Democratic House Speaker Nancy Pelosi expressed hope for political compromise on a bill this week. Rates came back from their peak as negotiations dragged on Wednesday.
European stocks slumped for a third day, with gold miners Fresnillo Plc and Centamin Plc falling after cutting production guidance. Telecom equipment maker Ericsson was a bright spot, climbing after a profit beat. “Markets are pretty aggressively priced and we’re getting a lot information about earnings season,” said George Pearkes, global macro strategist at Bespoke Investment Group. “This is just stocks doing what stocks do, which is sometimes go up and sometimes go down, and whether it’s because of stimulus or something else is kind of irrelevant.” Pelosi said Tuesday she also hoped that fresh stimulus spending would be retroactive, although the Republican Senate majority leader has warned the White House against a bigger Democrat-led deal before the election. The administration said it hopes to get a deal in the next 48 hours and that its offer is now up to $1.88 trillion, below the $2.2 trillion Pelosi has pushed for. “The rise in yields suggests that the market thinks a stimulus deal will be forthcoming and that the Democrats are set to take both the presidency and the Senate at the Nov. 3 election,” said John Hardy, chief foreign-exchange strategist at Saxo Bank.
Elsewhere, the yen headed for its best day versus the dollar since August. The pound jumped after European Union chief Brexit negotiator Michel Barnier said a deal is within reach. Copper traded near a two-year high on supply disruptions in Chile. Oil dropped toward $40 a barrel in New York after an industry report pointed to a surprise increase in American crude stockpiles.
Here are some key events this week:
* Brexit trade talks are likely to continue at least into next week if the U.K. and EU fail to reach an agreement.
* The final presidential debate before the U.S. election, between President Donald Trump and former Vice President Joe Biden, will be live from Nashville, Tennessee on Thursday.
* U.S. jobless claims come Thursday.
Here are some of the main market moves:
Stocks
* The S&P 500 Index fell 0.2% as of 4 p.m. New York time.
* The Nasdaq 100 Index lost 0.1%.
* The Stoxx Europe 600 Index decreased 1.3%.
* The MSCI Asia Pacific Index rose 0.8%.
* The MSCI Emerging Market Index gained 0.4%.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.5%.
* The euro increased 0.3% to $1.186.
* The British pound surged 1.6% to $1.3149.
* The Japanese yen strengthened 0.9% to 104.53 per dollar.
Bonds
* The yield on 10-year Treasuries jumped three basis points to 0.81%.
* The yield on two-year Treasuries climbed one basis point to 0.15%.
* Germany’s 10-year yield gained one basis point to -0.59%.
* Britain’s 10-year yield climbed five basis points to 0.242%.
Commodities
* West Texas Intermediate crude fell 4% to $40.04 a barrel.
* Gold futures strengthened 0.6% to $1,927.50 an ounce.
–With assistance from Todd White

Have a great night.

Be magnificent!
As ever,

Carolann

Everything is possible.
The impossible just takes longer.
               -Dan Brown, b. 1964

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