October 23, 2019 Newsletter

Dear Friends,

Tangents: Happy hump day!

Google claims it built a computer that achieved “quantum supremacy.”  
Danes moved a 720-ton lighthouse on skates.
The “Joker” stairs are New York’s hottest tourist attraction. -Bloomberg.

1956~ Hungarian Revolution
1989~ Hungarian Independence
2001 Apple Computer Inc. introduced the iPod portable digital music player. Go to article >>

PHOTOS OF THE DAY

Journalists study Leonardo Da Vinci’s ‘La Belle Ferronniere’ at the Louvre museum, in Paris, Tuesday, Oct. 22, 2019. The Louvre, the home of the “Mona Lisa,” is commemorating the 500th anniversary of Leonardo’s death with the landmark new exhibit.
CREDIT: THIBAULT CAMUS/ AP

Member of the Rockettes dance company rehearse for the upcoming ‘2019 Christmas Spectacular Starring the Radio City Rockettes’ in New York. The annual holiday show has been performed since 1933.
CREDIT: JUSTIN LANE/ EPA

Japan’s Princess Mako attends the enthronement ceremony where Emperor Naruhito officially proclaimed his ascension to the Chrysanthemum Throne at the Imperial Palace.
CREDIT: KAZUHIRO NOGI/GETTY IMAGES

Staff monitor the Rubjerg Knude Lighthouse being moved on rails in Jutland, Denmark. The 120-year-old lighthouse has been put on wheels and rails to attempt to move it some 80 meters away from the North Sea, as it is endangered by coastal erosion and shifting sands.
CREDIT: HENNING BAGGER/EPA

Market Closes for October 23^rd, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1868, memberships, or “seats,” were first made saleable by the New York Stock Exchange. The going rate was $7,000, or about $80,000 in today’s dollars. Considering that seats now sell for more than $1.5 million, they were a steal back then.
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks retreated for a second day after Rogers Communications Inc. cut its annual forecast, sending the communication services index down by the most since 2013.The S&P/TSX Composite Index fell 0.3% to 16,335.93. Rogers lost 8.1% to the lowest since June 2018 after it cited new unlimited data plans for its lower revenue outlook. Competitors BCE Inc., Telus Corp. and Shaw Communications Inc. all slid more than 4%. Real-estate stocks also fell as FirstService Corp. tumbled 9%, the most ever, following weak earnings. In total, 8 of 11 sectors were lower; 122 of the 233 stocks in the index fell, while 105 rose.
Commodities
* Western Canada Select crude oil traded at a $17 discount to WTI
* Spot gold rose 0.5% to $1,494.70 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.1% C$1.3075 per U.S. dollar
* The Canada 10-year government bond yield was little changed at 1.52%
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Communication Services | -46.0634| -4.9| 0/7
Financials | -10.7676| -0.2| 9/16
Real Estate | -6.6028| -1.1| 3/21
Information Technology | -3.6859| -0.4| 4/5
Industrials | -3.2661| -0.2| 14/17
Consumer Discretionary | -2.7929| -0.4| 7/9
Utilities | -1.5042| -0.2| 7/9
Consumer Staples | -1.2354| -0.2| 2/8
Health Care | 3.2095| 1.5| 6/4
Energy | 7.9807| 0.3| 20/11
Materials | 9.1470| 0.5| 34/14
US
By Rita Nazareth and Claire Ballentine
(Bloomberg) — U.S. stocks rose as investors sifted through a batch of earnings reports. Benchmark Treasuries erased gains. The S&P 500 Index closed above its 3,000 level. Boeing Co. led gains in the Dow Jones Industrial Average after mapping out a sharp boost to the beleaguered 737 Max plane’s output. Caterpillar Inc. climbed as traders welcomed its move to cut production. Apple Inc. rallied to a record after Morgan Stanley raised its target. The Philadelphia Semiconductor Index tumbled about 2% on Texas Instruments Inc.’s weaker-than-expected forecast.
More earnings news:
* Snap Inc. tumbled as its results failed to warrant additional optimism after a strong rally in the shares.
* Eli Lilly & Co. slid as sales for a pair of key drugs drew criticism from Wall Street, despite an increased guidance.
* Chipotle Mexican Grill Inc. fell on concern over the rising cost of wages and delivery. Still, sales beat estimates.
* IRobot Corp. plunged after cutting the high end of its revenue view.
* Alexion Pharmaceuticals Inc. gained after boosting its adjusted earnings per share forecast.
* Boston Scientific Corp. surged after raising its revenue outlook.
* Hilton Worldwide Holdings Inc. climbed after boosting its forecast for the rest of the year.

The barrage of corporate results is a barometer of the strength of the global economy as the ongoing dispute between the U.S. and China undermines confidence. Texas Instruments warned that trade tension is making customers far more cautious, while Caterpillar blamed heightened “economic uncertainty” for slowing customer purchases. “The momentum in earnings has slowed pretty sharply, so there’s not a lot of expectations for earnings growth,” said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors. “There is clearly more evidence of concern about slowing outside the U.S.” Beyond Meat Inc. fell below $100 as fears of more insider selling next week overshadowed earnings bets. Nike Inc. tapped former EBay head John Donahoe to replace Chief Executive Officer Mark Parker next year. The shares dropped. Elsewhere, oil climbed after a U.S. government report showed a surprise drop in crude supplies. Turkey’s lira rallied after President Donald Trump said he’s lifting recently imposed sanctions after the country complied with a cease-fire agreement.
Read: Bitcoin Tumbles to 5-Month Low as Libra Hit by U.S. Backlash
Here are some key events coming up this week:
* Earnings season is in full swing with companies reporting including: Amazon.com, Daimler and Kia Motors.
* Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.
* U.S. factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investing decisions.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index increased 0.3% to 3,004.55 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index rose 0.1%.
* The MSCI Asia Pacific Index declined 0.1%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro rose 0.1% to $1.1133.
* The British pound increased 0.3% to $1.2914.
* The Japanese yen slid 0.2% to 108.69 per dollar.
Bonds
* The yield on 10-year Treasuries gained one basis point to 1.77%.
* Germany’s 10-year yield decreased three basis points to -0.39%.
* Britain’s 10-year yield fell three basis points to 0.685%.
Commodities
* The Bloomberg Commodity Index gained 0.7%.
* West Texas Intermediate crude climbed 2.7% to $55.97 a barrel.
* Gold added 0.6% to $1,495.70 an ounce.
–With assistance from Adam Haigh, Todd White, Robert Brand,
Nancy Moran and Ian King.
Have a great night.

Be magnificent!
As ever,

Carolann

Life must be understood backwards; but it must be lived forwards.
                                              -Soren Kierkegaard, 1813-1855

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