October 25, 2021 Newsletter

Dear Friends,

Tangents:
October 25, 2001 Microsoft released the Windows XP operating system. Go to article »

Pablo Picasso, artist, b. 1881.

The most powerful space telescope ever will look back in time.

Adele makes record-breaking return to UK chart top spot with new single.  She just knew we all needed a good cry right now

No, your kid probably shouldn’t watch ‘Squid Game,’ and here’s why.  (There’s literal murder in it.)

PHOTOS OF THE DAY
Siberian cats at the Tayozhny Krai kennel
CREDIT: Andrei Samsonov/Tass
Retired couple Tony and Marie Newton tend to their ‘Four Seasons’ garden as it bursts into autumnal colour at their home
CREDIT: Jacob King/PA
Women prepare red peppers to make the traditional popular dipping sauce Ajvar at the agricultural cooperative Krusha. Traditionally, Ajvar is prepared in autumn when the peppers are most abundant, conserved in glass jars and consumed during the year
CREDIT: Armend Nimani/AFP/Getty Images

Market Closes for October 25^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 2000, AT&T announced it would break itself up into four separate businesses: broadband, wireless, business services and consumer services. After years of slowing growth, the floundering behemoth was finally showing that its all-things-to-all-people strategy was a failure. “It’s really the end of an icon,” said analyst Ken McGee, “and no matter how they try to put a positive spin on it, it’s the death of a corporate giant.”
Canada
By Divya Balji and Kristine Owram
(Bloomberg) — The Canadian stock market posted its longest streak of gains ever as a rally in commodities pushed the benchmark higher for a 14th straight session. The S&P/TSX Composite Index rose 0.3% to an all-time high Monday. It has added about C$237 billion ($191 billion) in market value during its recent winning streak, according to data compiled by Bloomberg. U.S. oil prices hit $85 a barrel for the first time since 2014 and metals prices also climbed, fueling Monday’s rally. Energy and materials make up about 25% of the Canadian benchmark. “The TSX is one of the best inflation hedges you can find,” Stefane Marion, chief economist and strategist at National Bank of Canada, said via phone.  In a recent analysis, Marion found that the S&P/TSX posted an annualized return of 2.3% during inflationary periods due to its commodity exposure, versus a decline of 5.9% for the S&P 500. The Canadian stock market has been on a tear amid a surge in cyclical and value stocks as the nation’s economy reopens thanks to a waning Covid-19 pandemic.
Energy, real estate and financials are the top gainers on the S&P/TSX this year. Last week, the nation’s most populous province unveiled a plan to lift all public health restrictions related to the pandemic in the next six months, bringing a return to normal life into view for residents. Foreign investors are also optimistic on the nation’s equity market. They’ve added more than $22 billion as of the end of August, thanks in part to the run in cyclicals and also due to a strong Canadian dollar. The loonie is the best-performing currency against the U.S. dollar among its G-10 peers this year, rising about 2.7%. While the S&P/TSX has gained 22.1% this year, slightly surpassing the 21.6% advancement in the S&P 500, Canadian stocks are still cheap compared to the U.S. The price to earnings ratio for Canadian equities is about 15.8 times compared to the 21 times for the S&P 500.

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose for the 14th day, climbing 0.3 percent, or 68.69 to 21,284.84 in Toronto. Suncor Energy Inc. contributed the most to the index gain, increasing 3.1 percent. Cominar Real Estate Investment Trust had the largest increase, rising 12.1 percent. Today, 156 of 233 shares rose, while 73 fell; 7 of 11 sectors were higher, led by materials stocks.
Insights
* This year, the index rose 22 percent, heading for the best year in at least 10 years
* This month, the index rose 6.1 percent, heading for the biggest advance since November 2020
* The index advanced 31 percent in the past 52 weeks. The MSCI AC Americas Index gained 32 percent in the same period
* The S&P/TSX Composite is 0.1 percent below its 52-week high on Oct. 25, 2021 and 38 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 1.4 percent in the past 5 days and rose 4.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.3 on a trailing basis and 16.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent 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 rose to 10.41 percent compared with 10.39 percent in the previous session and the average of 9.88 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 36.9453| 1.5| 50/5
* Energy | 23.4933| 0.8| 20/3
* Financials | 22.9648| 0.3| 17/11
* Consumer Staples | 5.4473| 0.7| 10/3
* Information Technology | 4.7006| 0.2| 9/6
* Real Estate | 1.8062| 0.3| 14/9
* Health Care | 1.0886| 0.5| 5/4
* Utilities | -0.1167| 0.0| 7/8
* Consumer Discretionary | -5.2583| -0.7| 5/6
* Communication Services | -9.7063| -1.0| 2/5
* Industrials | -12.6534| -0.5| 17/13
================================================================
| | |Volume VS| YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move|% Change | (%) | (%)
================================================================
* Suncor Energy | 9.0070| 3.1| 23.5| 36.4
* Bank of Montreal | 8.0520| 1.3| 222.9| 41.8
* Brookfield Asset | | | |
* Management | 7.1910| 0.9| 2.5| 45.8
* Restaurant Brands | -7.9460| -4.8| 113.3| -6.4
* Rogers Communications | -8.4440| -5.8| 284.6| -4.6
* Canadian National | -8.8060| -1.2| 18.0| 18.2

US
By Vildana Hajric
(Bloomberg) — U.S. stocks rose to another record high as traders geared for a string of earnings reports from technology heavyweights including Facebook Inc., while keeping in mind inflation concerns and rising Covid-19 risks. Consumer discretionary, energy and materials sectors led the S&P 500 to an all-time high. PayPal Holdings Inc. rose after the company said it isn’t pursuing an acquisition of Pinterest Inc., ending days of speculation over a potential $45 billion deal. Tesla Inc. advanced after receiving an order for 100,000 cars from Hertz Global Holdings Inc. “This year, broad market indices have benefited from robust earnings growth—the rising tide lifts all boats adage has been in full effect,” said Principal Global Investors Chief Strategist Seema Shah. “But as the economy slows and market conditions become more challenging, selectivity will be key.  Staying overweight equities, with a focus on factors such as quality, will be increasingly important for investors aiming to balance portfolios in the market environment ahead.”
Oil pared gains after hitting $85 a barrel for the first time since 2014 with traders focused on upcoming talks between Iran and the European Union that may lead to a revival of a 2015 nuclear deal. Yields on shorter-maturity Treasuries fell and the dollar edged higher after Federal Reserve Chair Jerome Powell flagged that inflation could stay higher for longer, fueling investor concern that sticky price increases may force policy makers to raise borrowing costs. Gold advanced above $1,800 an ounce. Global equities have remained resilient despite risks from price pressures stoked by supply-chain bottlenecks and higher energy costs.
Treasury Secretary Janet Yellen is among those counseling the inflation situation reflects temporary pain that will ease in the second half of 2022. Investors are wary that tighter monetary policy to keep inflation in check will stir volatility. Traders are also monitoring an outbreak of the delta virus strain in China that is expected to worsen. The nation sought to allay concerns about the economy’s slowdown with a lengthy state media commentary outlining how the government is managing risks and remains confident about achieving its targets for the year. The Stoxx Europe 600 index edged higher. The basic-resources sector advanced as crude oil and metals rose earlier, while banks increased on HSBC Holdings Plc’s bright outlook.
Here are some events to watch this week:
* Earnings: Amazon, Apple, Facebook, Microsoft, Twitter, Samsung Electronics, China Vanke, PetroChina, Ping An Insurance Group
* Australia CPI, Wednesday
* U.S. wholesale inventories, U.S. durable goods, Wednesday
* Bank of Japan monetary policy decision, briefing, Thursday
* ECB rates decision, President Christine Lagarde briefing, Thursday
* U.S. GDP, initial jobless claims, Thursday
* G-20 joint finance and health ministers meeting ahead of the weekend leaders’ summit, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 1%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.3% to $1.1611
* The British pound was little changed at $1.3765
* The Japanese yen fell 0.2% to 113.72 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 1.63%
* Germany’s 10-year yield declined one basis point to -0.11%
* Britain’s 10-year yield was little changed at 1.14%
Commodities
* West Texas Intermediate crude fell 0.4% to $83.45 a barrel
* Gold futures rose 0.7% to $1,808.10 an ounce
–With assistance from Emily Graffeo.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Believe me, every heart has its secret sorrow which the world knows not;
and oftentimes we call a man cold, when he is only sad. -Henry Wadsworth Longfellow, 1807-1882.

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