October 21, 2021 Newsletter

Dear Friends,

Tangents:

On Oct. 21, 1879, Thomas Edison invented a workable electric light at his laboratory in Menlo Park, N.J.  Go to article »
1967: Vietnam war protestors storm the Pentagon
Alfred Nobel, established Nobel Prize, b.1833.
Dizzie Gillespie, musician, b. 1917.

Ford’s hybrid pickup truck is almost sold out for the 2022 model year.

Why Santa Fe is the new American mecca for modern architecture.

PHOTOS OF THE DAY

A triceratops skeleton is displayed ahead of its sale at the Hôtel Drouot auction house
CREDIT: Christophe Archambault/AFP/Getty Images

A man wearing a suit made of mirrors attends a fashion exhibition
CREDIT: Wana News Agency/Reuters

Lava flows from the Cumbre Vieja volcano, destroying houses in La Laguna
CREDIT: Saul Santos/AP

Market Closes for October 21st, 2021

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. Since he had already predicted the death of the bull market in January 1927, June 1928 and July 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 Natasha Abellard
(Bloomberg) — Canadian stocks rose today for a 12^th straight day, its longest streak since January 2019. The S&P/TSX Composite gained 0.1% in Toronto as investors weighed the rollout of corporate earnings and inflation concerns. Shopify contributed the most to the index gain, increasing 0.6%. Stantec had the largest increase, rising 9.8%. Today, 116 of 233 shares rose, while 111 fell; 6 of 11 sectors were higher, led by industrials.
Insights
* This year, the index rose 22%, heading for the best year in at least 10 years
* This month, the index rose 5.7%, heading for the biggest advance since November 2020
* So far this week, the index rose 1.4%
* The index advanced 31% in the past 52 weeks. The MSCI AC Americas Index gained 33% in the same period
* The S&P/TSX Composite is 0.1% below its 52-week high on Oct. 21, 2021 and 37.6% above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 1.9% in the past 5 days and rose 4.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.2 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$3.34t
* 30-day price volatility fell to 10.48% compared with 10.51% in the previous session and the average of 9.59%over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Industrials | 30.2367| 1.2| 19/11
* Information Technology | 27.2979| 1.1| 13/2
* Financials | 13.2184| 0.2| 20/8
* Consumer Staples | 5.7025| 0.8| 9/4
* Utilities | 1.3123| 0.1| 11/5
* Real Estate | 0.7179| 0.1| 13/10
* Health Care | -0.2572| -0.1| 3/4
* Consumer Discretionary | -0.8028| -0.1| 6/7
* Communication Services | -5.0437| -0.5| 0/7
* Materials | -13.4238| -0.5| 21/31
* Energy | -34.7608| -1.2| 1/22
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 12.9600| 0.9| -37.9| 28.8
* Brookfield Asset | | | |
* Management | 11.6500| 1.6| -13.3| 43.1
* Canadian National | 11.4700| 1.7| 123.0| 17.4
* Suncor Energy | -6.1090| -2.1| -7.1| 30.9
* Nutrien | -7.6480| -2.2| -13.3| 41.3
* Enbridge | -8.1590| -1.1| -24.8| 29.3

US
By Vildana Hajric and Nathan Hager
(Bloomberg) — U.S. stocks rose to the first all-time high since Sept. 2, powered by a spate of strong corporate results and positive news on the fight against the virus. A late-session rally lifted the S&P 500 0.3% for a seventh straight gain, the longest streak since July.  Shares in stocks that benefit from a strong economy rallied after better-than-expected earnings at Tesla Inc., Pool Corp. and Tractor Supply Co. The mood soured after the cash session, when Snap Inc. plunged more than 25% after reporting results that missed estimates. The owner of the Snapchat app warned that global supply chain issues are discouraging advertisers from trying to reach new customers. Other social media stocks slumped in afterhours, with Facebook Inc. and Twitter Inc. each down 6%. Alphabet Inc. slid almost 3%.
The gains during regular trading ended the longest drought without a record close since November 2020. The S&P 500 has climbed 5% since JPMorgan Chase & Co. kicked off reporting season, following a month of losses. The steady rise in stocks sent the Cboe Volatility Index to its lowest close since before the pandemic. “I think it’s OK that investors are looking at earnings and going through them with a very fine-toothed comb,” Liz Young, head of investment strategy at SoFi, said on Bloomberg’s “QuickTake Stock” streaming program. “We’re in a time-period where we are finally, it seems like, going to shift away from markets that are driven by monetary policy and back to markets that are driven by fundamentals.” Market-implied expectations for U.S. inflation for the next half-decade have surged to the highest in 15 years as more investors have been losing faith in the Federal Reserve narrative that rising prices will be “transitory.” The five-year Treasury yield climbed above 1.21%, the highest since February 2020, as traders increased their bets the Fed may tighten policy sooner than expected. Solid economic reports on Thursday also strengthened predictions.
The latest jobless claims report unexpectedly declined to the lowest since March 2020. Sales of previously owned U.S. homes also rose in September by the most in a year.  Meanwhile, Congressional Democrats are at odds over both the tax and spending aspects of President Joe Biden’s economic package. “Good jobs plus high inflation creates a significant one-two punch against the Fed’s accommodative stance,” said Mike Loewengart, managing director of investment strategy at E*TRADE Financial.  “Easing and even rate increases down the road could start to be accelerated if we see more momentum like this, which perversely could create headwinds for the market.” With stocks at highs, traders are braced for swings in the market while also keeping a close eye on company margins, pricing power and outlooks. “At a stock level, you really need to focus on companies that have pricing power” and can pass along costs, Steve Chiavarone, vice president and general manager at Federated Global Investment, said on Bloomberg TV’s “Surveillance.” “If you can’t, and it starts eating away at your margin, I think you need to expect to get punished.” Crude oil slipped, the dollar was stronger against peers and Bitcoin fell from an all-time peak. 

Events to watch this week:
* Fed Chair Jerome Powell takes part in policy panel discussion, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4:02 p.m. New York time
* The Nasdaq 100 rose 0.7%
* The Dow Jones Industrial Average was little changed
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.1623
* The British pound fell 0.3% to $1.3788
* The Japanese yen rose 0.3% to 114.02 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points to 1.68%
* Germany’s 10-year yield advanced two basis points to -0.10%
* Britain’s 10-year yield advanced five basis points to 1.20%
Commodities
* West Texas Intermediate crude fell 0.9% to $82.64 a barrel
* Gold futures were little changed
–With assistance from Andreea Papuc and Abigail Moses.
Have a great night.

Be magnificent!

As ever,

Carolann

If you’re not making mistakes, you’re not trying hard enough.  -Vince Lombardi, 1913-1970.

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