October 25, 2022 Newsletter

Dear Friends,

Tangents:
October 25, 1983: A U.S.-led force invaded Grenada at the order of President Ronald Reagan, who said the action was needed to protect U.S. citizens there.  Go to article »

October 25, 1955: Tappan Stove Company sells the first domestic microwave oven, a large, 220V wall unit priced at $1295 to low sales.  The technology was licensed from Raytheon who had filed a patent for the microwave cooking process in 1945.  The appliance was born of the radar systems used in World War II and the labs of what is ow one of the biggest U.S. defense companies.

Geoffrey Chaucer, author, d. 1400.
Pablo Picasso b.1881.

Hundreds of medieval skeletons, half of them children, discovered under Wales department store:  Archaeologists in Wales have unearthed the skeletal remains of more than 240 people — about half of which were children — in a cemetery that they believe was once part of a medieval friary.   Scientists made the discovery during an ongoing excavation of what was once St. Saviour’s Priory, a holy site founded in 1256 by a Dominican order of monks.  Full Story: Live Science (10/25)

The last solar eclipse of the year can be seen today.  But those in the US will have to miss out on this one… It will be visible in parts of Greenland, Iceland, most of Europe, northeast Africa, and parts of Asia.

Ancient Korean silk paintings get a mind-bending contemporary spin.  These artworks put a modern spin on historical painting styles. Take a look.

We’re all going to need to relearn how to use the internet once AI arrives. — Tyler Cowen.

The perfect avocado does not exis—.
PHOTOS OF THE DAY

King Charles III welcomes Rishi Sunak during an audience at Buckingham Palace, where he invited the newly elected leader of the Conservative party to become prime minister and form a new government
Photograph: Aaron Chown/PA

A partial solar eclipse is visible over Cullercoats Watch House
Photograph: Owen Humphreys/PA
I took this photo of the two gannets as they flew over our heads when we were on a boat just off the coast of Cornwall. A large number of gannets were diving around us – a spectacular sight!
Photograph: Thomas Easterbrook/Landscape photographer of the year 2022
Market Closes for October 25, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
💸 On this day in 1907, as the Panic of 1907 continued, J.P. Morgan raised still more cash to prop up struggling brokerage firms, this time flushing up $10 million to lend at the New York Stock Exchange. Brokers shouted with joy as they saw the cigar-chomping Mr. Morgan barging back to his office to announce that he had raised the money.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.9%, or 178.61 to 19,097.01 in Toronto.
The index advanced to the highest closing level since Oct. 5.
Nutrien Ltd. contributed the most to the index gain, increasing 4.4%.
Canopy Growth Corp. had the largest increase, rising 25.7%.
Today, 190 of 236 shares rose, while 42 fell; all sectors were higher, led by financials stocks.
Insights
* This year, the index fell 10%, heading for the worst year since 2018
* This month, the index rose 3.5%
* The index declined 10% in the past 52 weeks. The MSCI AC Americas Index lost 17% in the same period
* The S&P/TSX Composite is 14% below its 52-week high on April 5, 2022 and 6.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 1.6% in the past 5 days and rose 3.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.9 on a trailing basis and 12 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.02t
* 30-day price volatility fell to 22.72% compared with 22.99% in the previous session and the average of 21.19% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 45.1119| 0.8| 27/2
Materials | 28.4895| 1.3| 34/17
Industrials | 22.7316| 0.9| 21/5
Information Technology | 18.8551| 1.9| 12/1
Utilities | 14.3152| 1.6| 15/0
Energy | 13.8123| 0.4| 25/12
Consumer Discretionary | 9.1042| 1.3| 13/1
Real Estate | 8.8482| 1.9| 22/0
Communication Services | 7.3645| 0.8| 7/0
Consumer Staples | 5.1632| 0.7| 7/4
Health Care | 4.8372| 6.3| 7/0
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Nutrien | 17.8500| 4.4| 7.7| 19.0
Brookfield Asset Management | 11.1100| 2.2| 9.0| -30.1
Shopify | 9.3110| 2.9| -16.9| -76.7
Waste Connections | -0.9740| -0.3| -53.2| 4.6
CCL Industries | -1.0700| -1.6| -17.6| -2.4
Imperial Oil | -1.1460| -1.3| -22.8| 44.2
US
By Vildana Hajric and Isabelle Lee
(Bloomberg) — US stocks rose on Tuesday after a fresh batch of corporate earnings largely beat estimates even as investors weighed risks to economic growth from the Federal Reserve raising interest rates to combat inflation.
The S&P 500 and the Nasdaq 100 rose for a third straight session.
The Coca-Cola Co. and General Motors Co. closed the session in green after topping analysts’ earnings estimates.
Google parent Alphabet Inc. fell post market after missing estimates.
Microsoft Corp. which also reported earnings after markets closed, topped expectations but cited the impact the surging US dollar had on revenue growth.
Treasuries rallied, with the 10-year yield falling to around 4.08%.
The dollar dropped after data on Tuesday showed that home-price growth in the US slowed as high borrowing costs sapped demand.
Investors still expect the Fed to raise rates by three-quarters of a percentage point during its meeting next week.
But recent economic data is already showing that Fed tightening has started to weigh on the US economy, leading investors to speculate that the central bank may be approaching the end of its aggressive tightening campaign.
This renewed expectation of less hawkishness from the Fed, as well as a better-than-expected earnings season so far, have pushed stocks higher in recent days.
“The big thing is what we’re seeing from earnings, and as we get more and more, the market is coming around to this sense that the outlooks aren’t nearly as bad as some had feared,” Shawn Cruz, head trading strategist at TD Ameritrade, said in an interview. “The market was actually bracing itself for more pessimistic tones from companies as we got through earnings and it’s not coming out that way right now. It’s mixed too, but even being mixed is ahead of expectations.”
Roughly 28% of S&P 500 companies have reported earnings, with around 70% outperforming estimates, according to data compiled by Bloomberg.
Analysts are also expecting a jumbo hike of 75 basis points from the ECB on Thursday, even as many economists now reckon a recession has begun in the euro region.
German business confidence improved in October, data showed Tuesday, though remained at depressed levels as Europe’s largest economy heads into a challenging winter.
Elsewhere in markets, the British pound gained as Rishi Sunak formally took over as UK prime minister on Tuesday, vowing to “fix” the mistakes made by his predecessor, Liz Truss. 
Key events this week:
* Earnings due this week include: Apple, Exxon Mobil, Ford Motor, Credit Suisse, Airbus, Amazon, Bank of China, Boeing, Caterpillar, Cnooc, Intel, McDonald’s, Mercedes-Benz, Merck, Samsung Electronics, Shell, Vale, Visa, Volkswagen
* Bank of Canada rate decision, Wednesday
* ECB rate decision, Thursday
* US GDP, durable goods orders, initial jobless claims, Thursday
* Bank of Japan policy decision, Friday
* US personal income, personal spending, pending home sales, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.7% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.1%
* The Dow Jones Industrial Average rose 1.1%
* The MSCI World index rose 0.8%
Currencies
* The Bloomberg Dollar Spot Index fell 0.8%
* The euro rose 0.9% to $0.9967
* The British pound rose 1.7% to $1.1471
* The Japanese yen rose 0.7% to 147.93 per dollar
Cryptocurrencies
* Bitcoin rose 4.6% to $20,274.81
* Ether rose 11% to $1,493.73
Bonds
* The yield on 10-year Treasuries declined 16 basis points to 4.08%
* Germany’s 10-year yield declined 16 basis points to 2.17%
* Britain’s 10-year yield declined 11 basis points to 3.64%
Commodities
* West Texas Intermediate crude rose 0.5% to $85.02 a barrel
* Gold futures rose 0.2% to $1,657.90 an ounce
–With assistance from Emily Graffeo and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

We shall be judged more by what we do at home than what we preach abroad. –John F. Kennedy, 1917-1963.

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