October 26, 2021 Newsletter

Dear Friends,

Tangents:
October 26, 1825: The Erie Canal opened, connecting Lake Erie and the Hudson River in upstate New York. Go to article »

Leon Trotsky, revolutionary, b. 1879.
Hillary Rodham Clinton, politician, Former First Lady, b. 1947.
 
Jeff Bezos’ Blue Origin wants to build a tourism space station nearly as big as the ISS.  For when you really, REALLY wanna get away. 

Why some people get scared easily and others don’t.  Scaredy-cats unite! No horror movies for us!
 
Neutron star collisions are a goldmine of heavy elements, study finds. 

Japan’s monarchy just lost another royal.
PHOTOS OF THE DAY
The former princess Mako and her husband, Kei Komuro, at the start of a press conference to announce their marriage registration and her leaving the royal family, at the Grand Arc hotel
CREDIT: Nicolas Datiche/AFP/Getty Images

A child stands on dried out land as drought stalks the parched fields around the remote Afghan district, where the climate crisis is proving a deadlier foe than the country’s recent conflicts
CREDIT: Hoshang Hashimi/AFP/Getty Images
An installation called Sinking House is partly submerged to highlight the climate crisis before Cop26
CREDIT: Rebecca Naden/Reuters

Market Closes for October 26^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1825, the Erie Canal was inaugurated as New York City hosted a flotilla of boats with a parade, banquet and fireworks display after they traversed the 363-mile run from Lake Erie. Financed with $6 million in stock and bonds and eight years in the making, the canal cut shipping time from New York to Buffalo from three weeks to eight days—and slashed the cost of transporting goods from $100 a ton to $15. Suddenly the American frontier was opened to a two-way flood of commerce.
Canada
By Natasha Abellard
(Bloomberg) — Canadian equities declined, ending a 14-day rally. The S&P/TSX Composite fell 0.5% in Toronto. The move was the biggest since falling 1.4% on Sept. 28 and follows the previous session’s increase of 0.3%. Shopify contributed the most to the index decline, decreasing 4.4%. BRP had the largest drop, falling 8%. Today, 163 of 233 shares fell, while 67 rose; 9 of 11 sectors were lower, led by information technology stocks.
Insights
* This year, the index rose 21%, heading for the best year in at least 10 years
* This month, the index rose 5.5%, heading for the biggest advance since November 2020
* The index advanced 32% in the past 52 weeks. The MSCI AC Americas Index gained 35% in the same period
* The S&P/TSX Composite is 0.6% below its 52-week high on Oct. 26, 2021 and 37.3% above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 0.4% in the past 5 days and rose 3.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.1 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$3.36t
* 30-day price volatility fell to 10.40% compared with 10.41% in the previous session and the average of 9.91% over the past month.
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -69.9287| -2.9| 4/11
* Materials | -20.4877| -0.8| 16/38
* Consumer Staples | -10.6051| -1.4| 0/13
* Consumer Discretionary | -10.3808| -1.4| 3/10
* Energy | -7.2268| -0.3| 7/16
* Industrials | -5.6675| -0.2| 10/19
* Health Care | -4.1017| -2.0| 0/9
* Real Estate | -2.3972| -0.4| 6/18
* Utilities | -1.7556| -0.2| 2/13
* Communication Services | 0.2630| 0.0| 4/3
* Financials | 20.8869| 0.3| 15/13
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -60.5200| -4.4| 61.0| 17.5
* Couche-Tard | -7.1510| -2.6| 4.2| 10.1
* First Quantum | | | |
* Minerals | -4.5290| -3.8| -18.2| 29.4
* Bank of Montreal | 2.8340| 0.5| 182.2| 42.5
* Bank of Nova Scotia| 5.3990| 0.8| -71.6| 20.6
* TD Bank | 9.6110| 0.9| -72.4| 25.6

US
By Vildana Hajric and Emily Graffeo
(Bloomberg) — U.S. stocks rose to all-time highs as corporate earnings helped boost sentiment amid lingering concerns about inflation and growth. The S&P 500 and Dow Jones Industrial Average set records as Tuesday’s round of earnings kicked off, with United Parcel Service Inc. and General Electric Co. gaining after strong results. Facebook Inc. dropped as a pledge to buy back more shares and increase spending on digital offerings was offset by a revenue miss. Big-tech peers Twitter Inc., Alphabet Inc. and Microsoft Inc. are reporting after close of regular trading. “I don’t think anybody’s too worried about the big tech names,” said Ross Mayfield, investment strategy analyst at Baird. “Their performances are all incredibly strong in absolute standards that the bar is just so high for them at this point that it can be harder to meet expectations.”
The Stoxx Europe 600 index also rose 0.8% to close at a record high. Reckitt Benckiser Group Plc gained after the maker of Strepsils throat lozenges raised its sales forecast and Novartis AG advanced on news it may spin off its generic-drug unit. The 10-year U.S. Treasury yield fell and the dollar gained. The debate over price pressures continues: former Treasury Secretary Lawrence Summers said officials are unlikely to deal with “inflation reality” successfully until it’s fully recognized. “We’re coming off a 40-plus-year bond-bull market,” said Megan Horneman, portfolio strategy director, Verdence Capital Advisors, on Bloomberg TV and Radio’s “Surveillance.” “And right now we’re looking at interest rates that should be a lot higher from here. So with duration, as high as it is in the fixed income market, you have to be very cautious around fixed income.”
Earnings season is helping to counter concerns that elevated inflation and tightening monetary policy will slow the recovery from the pandemic. Some 81% of S&P 500 members have reported better-than-expected results so far, though Citigroup Inc. warned that profit growth may be close to peaking. WTI crude oil traded above $84 a barrel as investors weighed the outlook for U.S. stockpiles and prospects for talks that may eventually help to revive an Iranian nuclear accord, allowing a pickup in crude exports.
Here are some events to watch this week:
* Earnings: Amazon, Apple, 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 0.2% as of 4:02 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.1599
* The British pound was little changed at $1.3763
* The Japanese yen fell 0.4% to 114.13 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 1.61%
* Germany’s 10-year yield was little changed at -0.12%
* Britain’s 10-year yield declined three basis points to 1.11%
Commodities
* West Texas Intermediate crude rose 1% to $84.58 a barrel
* Gold futures fell 0.7% to $1,794.90 an ounce
–With assistance from Nathan Hager.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Two things are bad for the heart – running up stairs and running down people. –Bernard M. Baruch, 1870-1965.

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