October 26, 2022 Newsletter

Dear Friends,

Tangents:
Hello, “Big Dark.” Today, the sun will set after 6 p.m. for the last time of the year, ushering in our gloomy season (or cozy season, depending on how you look at it). The darkening accelerates as we head for the winter solstice …

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

The search for habitable planets may have just gotten narrower.  Scientists have long theorized a certain type of star could support life beyond Earth… but now, that idea is looking unlikely.

Coke products might look a little different next year.  You may have heard about Coke’s bizarre, limited-time flavors. Well, now the company is also experimenting with its packaging.

9 incredible treasures discovered in King Tut’s tomb:  Tutankhamun’s tomb, discovered by archaeologists in the Valley of the Kings on Nov. 4, 1922, was found loaded with treasures. Some of those artifacts, like his death mask, are widely known. But others, such as a mannequin that may have helped the boy king choose what to wear, are less famous but offer insight into King Tut’s life.
Here are nine fascinating treasures from Tutankhamun’s tomb and what they reveal about the iconic ancient Egyptian pharaoh 100 years after the discovery of his remains.  Full Story: Live Science (10/26)

Stunning (and spooky) photos of the final solar eclipse of 2022:  On Tuesday (Oct. 25), the moon’s shadow appeared to creep over the face of the sun during the last solar eclipse of 2022.
Though the eclipse was just partial, with most viewers seeing between 40% and 60% of the sun’s surface obscured by the moon at the eclipse’s peak, the event nonetheless drew out sky-watchers with cameras, telescopes and paper eclipse viewers around the world. The eclipse was visible from most of Europe, North Africa, the Middle East and the western parts of Asia, beginning in the U.K. around 10 a.m. BST (9:00 a.m. UTC).  Full Story: Live Science (10/25)

PHOTOS OF THE DAY

Dubai, UAE
A general view of Dubai Miracle Garden, which is the largest flower garden in the world with millions of flowers in its 72,000 sq metres of land
Photograph: Anadolu Agency/Getty Images

Fully Loaded, Kevin Williams – winner, urban life
The port of Felixstowe, Suffolk
Photograph: Kevin Williams/Landscape photographer of the year 2022

​​​​​​​Highlands, Jian Hui Mo – winner, youth classic view
Whilst climbing in Glencoe, Scotland, I noticed this blue haze in the distance, shrouding the landscape in mystery. I switched to my long lens and took this image over the loch
Photograph: Jian Hui Mo/Landscape photographer of the year 2022
Market Closes for October 26, 2022

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 after they traversed the 363-mile run from Lake Erie. Financed with $6 million in stock and bonds, 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 Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 1%, or 182.75 to 19,279.76 in Toronto.
The index advanced to the highest closing level since Oct. 4.
Canadian National Railway Co. contributed the most to the index gain, increasing 3.0%.
Capstone Copper Corp. had the largest increase, rising 11.3%.
Today, 177 of 236 shares rose, while 59 fell; 10 of 11 sectors were higher, led by energy stocks.
Insights
* This year, the index fell 9.2%, heading for the worst year since 2018
* This month, the index rose 4.5%, heading for the biggest advance since October 2021
* The index declined 8.9% in the past 52 weeks. The MSCI AC Americas Index lost 18% in the same period
* The S&P/TSX Composite is 13.2% below its 52-week high on April 5, 2022 and 7.9% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 3.2% in the past 5 days and rose 5.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.1 on a trailing basis and 12.1 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$3.05t
* 30-day price volatility rose to 22.89% compared with 22.72% in the previous session and the average of 21.27% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 55.8061| 1.5| 36/2
Materials | 39.4510| 1.8| 41/10
Industrials | 32.9306| 1.3| 20/7
Communication Services | 19.1135| 2.1| 7/0
Financials | 17.3472| 0.3| 18/11
Real Estate | 7.1684| 1.5| 19/3
Consumer Staples | 6.9112| 0.9| 7/4
Consumer Discretionary | 3.8352| 0.6| 10/4
Utilities | 3.4161| 0.4| 8/8
Health Care | 2.0123| 2.5| 5/2
Information Technology | -5.2413| -0.5| 6/8
================================================================
| | |Volume VS| YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move|% Change | (%) | (%)
================================================================
Canadian National | 20.0600| 3.0| 93.7| 4.2
Canadian Pacific | 9.9220| 1.6| 4.5| 9.1
Shaw Communications | 7.5940| 7.2| 551.9| -4.9
TD Bank | -2.2390| -0.2| -30.9| -10.2
Nutrien | -6.7520| -1.6| -21.4| 17.1
Shopify | -9.5560| -2.9| 11.8| -77.3
US
By Isabelle Lee
(Bloomberg) — US stocks dropped as investors parsed fresh economic data and disappointing earnings while mulling the Federal Reserve’s path after the Bank of Canada announced a smaller-than-expected rate hike.
The S&P 500 and the Nasdaq 100 pushed lower, dragged by losses in Microsoft Corp. and Alphabet Inc. after the firms reported earnings that highlighted the impact the Fed, and consequently the surging dollar, had on the economy. US Secretary of State Antony Blinken’s comments also dampened sentiment in the afternoon after he said he doesn’t see Iran nuclear talks advancing in the short term.
Treasuries rallied after data showed the US merchandise-trade deficit widening. Sales of new US homes fell in September, another indication that the economy is starting to see the effects of the Fed raising rates sharply.
A gauge of the dollar declined for a second day to its lowest level in three weeks.
Stocks had been buoyed in recent days by mostly solid earnings and speculation the Federal Reserve may curb the pace of rate increases.
While disappointing earnings from mega-cap firms subdued sentiment on Wednesday, the Bank of Canada unexpectedly slowing its pace of interest-rate hikes briefly boosted markets.
But that wore off as some investors decided that it doesn’t necessarily mean the Fed will follow suit.
In any case, it’ll be challenging for the Fed to announce that they’re going to be less hawkish, as they have to manage investors’ expectations along the way, according to Dustin Thackeray, chief investment officer at Crewe Advisors.
“They obviously don’t want to be too dovish and the market is obviously looking for any sort of a sign from the Fed that we’re hitting the break, so to speak, on rate increases,” he said by phone. “If they continue on their too hawkish stance, here is a risk that things kind of get out of hand on that end as well. So they’re definitely walking a very fine line.”
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, Merck, Samsung Electronics, Shell, Vale, Volkswagen
* 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 fell 0.6% as of 3:34 p.m. New York time
* The Nasdaq 100 fell 2.1%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 1.6%
Currencies
* The Bloomberg Dollar Spot Index fell 0.9%
* The euro rose 1.1% to $1.0080
* The British pound rose 1.3% to $1.1626
* The Japanese yen rose 1.1% to 146.32 per dollar
Cryptocurrencies
* Bitcoin rose 2.7% to $20,743.2
* Ether rose 6% to $1,562.93
Bonds
* The yield on 10-year Treasuries declined eight basis points to 4.02%
* Germany’s 10-year yield declined six basis points to 2.11%
* Britain’s 10-year yield declined six basis points to 3.58%
Commodities
* West Texas Intermediate crude rose 3.3% to $88.10 a barrel
* Gold futures rose 0.6% to $1,668.60 an ounce
–With assistance from Allegra Catelli, Abigail Moses, Robert Brand, Vildana Hajric and Peyton Forte.

Have a lovely evening.

Be magnificent!

As ever,

Carolann

The urge to save humanity is almost always a false front for the urge to rule. –H. L. Mencken, 1880-1956.

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