October 26, 2023 Newletter

Dear Friends,

Tangents: Happy Friday Eve.
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

October 26,1902: Elizabeth Cady Stanton, an American pioneer in the fight for voting rights for women, died.
In 1984: “Baby Fae,” a newborn with a severe heart defect, was given the heart of a baboon in an experimental transplant, in Loma Linda, Calif. She lived 21 days with the animal heart.
In 2005: 17 Alberta oil field workers shared a $54 million Lotto 6-49 lottery win. Go to article >>

2,000-year-old decorated Roman sandal unearthed in Spain
Archaeologists in Spain used a pulley system to reach the bottom of a well, where they found a 2,000-year-old Roman sandal and other artifacts.

Scientists found a way for two black holes to orbit each other forever without colliding
Contrary to conventional wisdom, a pair of black holes could exist in perfect pairs without leading to a cataclysmic merger, new research suggests. All it takes is a dose of cosmic expansion

In a 1st, AI neural network captures ‘critical aspect of human intelligence’
Scientists have demonstrated that an AI system called a neural network can be trained to show “systematic compositionality,” a key part of human intellect.

PHOTOS OF THE DAY

Monterrey, Mexico
People visit an art installation named Altar Monumental, created for the annual Day of the Dead festivities in an attempt to set a Guinness World Record for the largest altar of the dead in history
Photograph: Daniel Becerril/Reuters

The bigger picture category student winner: Viktor Nunes Peinemann
As waves crash over a shallow reef in Kimbe Bay, schools of Chromis dart among Acropora corals. The water movement is strong enough that even the sturdy corals bend and sway. But sights like this are becoming rarer and rarer as Acropora corals throughout the Indo-Pacific have suffered high mortality in recent years

​​​​​​​Necks, please
A colony of mute swans at the Abbotsbury Swannery in Dorset. There are around 600 birds at the swannery, which was established by Benedictine monks.
Photograph: Stephen Smith
Market Closes for October 26^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1929, the Harvard Economic Society declared that “despite its severity, we believe that the slump in stock prices will prove an intermediate movement and not the precursor of a business depression such as would entail prolonged further liquidation.”
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the seventh day, dropping 0.4%, or 72.54 to 18,875.31 in Toronto.
The index dropped to the lowest closing level in at least a year.
Waste Connections Inc. contributed the most to the index decline, decreasing 6.6%.
Celestica Inc. had the largest drop, falling 10.3%.
Today, 124 of 227 shares fell, while 97 rose; 7 of 11 sectors were lower, led by information technology stocks.
Insights
* This year, the index fell 2.6%, heading for the worst year since 2022
* This month, the index fell 3.4%
* So far this week, the index fell 1.3%
* The index declined 2.1% in the past 52 weeks. The MSCI AC Americas Index gained 7.3% in the same period
* The S&P/TSX Composite is at its 52-week low and 9.4% below its high on Feb. 2, 2023
* The S&P/TSX Composite is down 2.4% in the past 5 days and fell 3.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.3 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.01t
* 30-day price volatility fell to 13.39% compared with 14.33% in the previous session and the average of 14.07% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | -38.0365| -2.8| 0/11
Industrials | -35.7403| -1.4| 9/17
Materials | -19.1806| -0.8| 19/31
Energy | -17.2347| -0.5| 19/18
Consumer Discretionary | -3.9347| -0.6| 4/10
Consumer Staples | -2.6126| -0.3| 3/8
Health Care | -0.5140| -1.0| 1/3
Real Estate | 0.5440| 0.1| 8/13
Communication Services | 0.8612| 0.1| 3/2
Utilities | 6.4172| 0.9| 10/4
Financials | 36.8626| 0.7| 21/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Waste Connections | -22.5900| -6.6|n/a | -1.4
Shopify | -19.8000| -3.5|n/a | 37.3
Constellation | | | |
Software | -9.2500| -2.4|n/a | 31.1
TD Bank | 6.2860| 0.6|n/a | -11.7
Bank of Montreal | 6.4270| 1.2|n/a | -13.5
RBC | 10.7300| 1.0|n/a | -13.4
US
By Rita Nazareth
(Bloomberg) — A rebound in tech giants faded in late hours as Amazon.com Inc. whipsawed after reporting earnings.
Intel Corp. climbed after its results, while Ford Motor Co. sank on disappointing numbers.
A $192 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) was little changed in late trading.
The tech-heavy sank nearly 2% Thursday.
The selloff also put the S&P 500 on the brink of a “correction” — with the gauge down almost 10% from its July peak.
Treasury yields fell as economic data suggesting inflation pressures continue to dissipate despite solid growth kept traders betting on a Federal Reserve pause.
Traders also kept a close eye on geopolitical developments, with Israel’s military saying it killed Hamas’s deputy head of intelligence, who it said was responsible for helping plan the Oct. 7 attacks.
The army overnight also made a limited ground raid into northern Gaza. Oil dropped below $84 a barrel.
The euro edged lower as the European Central Bank kept rates unchanged as expected.
Two-year yields, which are more sensitive to imminent Fed moves, dropped eight basis points to 5.04%.
Swap contracts project 32% odds for one more Fed hike in the current tightening cycle.
Treasury Secretary Janet Yellen said that the surge in longer-term bond yields in recent months is a reflection of a strong economy and expectations that interest rates may have to stay higher for longer.
A survey conducted by 22V Research shows that 71% of the investors polled don’t think the 10-year yield — which recently hit 5% — has peaked.
They expect it to keep increasing, with the median expectation for the peak at 5.5%.
Nineteen percent see the yield peaking at or above 6%.
“The stock market isn’t ready to rally until bond yields are sharply lower, which probably won’t happen until we see inflation a lot closer to the Fed’s target,” said Edward Moya, senior market analyst for the Americas at Oanda.
The US economy grew at the fastest pace in nearly two years last quarter amid a surge in consumer spending.
A closely watched measure of underlying inflation cooled more than expected to the slowest pace since 2020.

Corporate Highlights:
* Mastercard Inc. fell after the payments network predicted revenue growth for the coming quarter that undercut analyst forecasts, even as consumers continued to weather rising rates with robust spending on their cards.
* Western Digital Corp. sank after deal negotiations with Kioxia Holdings Corp. broke down, quashing hopes for a combination of their flash memory businesses.
* Hasbro Inc. slid after reporting quarterly results that missed Wall Street estimates on sales and earnings and lowering its annual revenue forecast due to a softer toy market heading into the holiday season.
* Harley-Davidson Inc. sank as profit missed estimates and sales plunged amid elevated borrowing costs in the US and economic weakness around the globe.
* Comcast Corp. retreated after reporting drops in broadband and cable subscribers, and predicting more losses to come.
* Hertz Global Holdings Inc. slid after missing profit estimates as it grapples with higher depreciation costs for its vehicles, which were unusually low in 2022.
* International Business Machines Corp. gained as it reported better-than-expected sales and affirmed its full-year outlook, suggesting the company’s focus on software and hybrid cloud services is paying off.
* First Citizens Bancshares Inc., the regional lender that acquired Silicon Valley Bank when it failed in March, said deposits beat estimates helped by growth in its direct bank channel. The shares rallied.
* Bunge Ltd. climbed after raising its earnings outlook after posting third-quarter profits that blew up beyond the highest estimates.

Key events this week:
* China industrial profits, Friday
* Japan Tokyo CPI, Friday
* US PCE deflator, personal spending and income, University of Michigan consumer sentiment, Friday
* Exxon Mobil earnings, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.9%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 1.1%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.0556
* The British pound was little changed at $1.2121
* The Japanese yen fell 0.1% to 150.42 per dollar
Cryptocurrencies
* Bitcoin fell 1.8% to $34,048.4
* Ether rose 0.2% to $1,791.9
Bonds
* The yield on 10-year Treasuries declined 11 basis points to 4.84%
* Germany’s 10-year yield declined three basis points to 2.86%
* Britain’s 10-year yield declined one basis point to 4.60%
Commodities
* West Texas Intermediate crude fell 2.2% to $83.48 a barrel
* Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee and Michael Mackenzie.

Have a wonderful evening everyone.

Be magnificent!
As ever,

Shabnam
“It’s better to look ahead and prepare, than to look back and regret.” — Jackie Joyner-Kersee

Shabnam Mohammadpourmarzbali
Assistant to Carolann Steinhoff
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
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www.carolannsteinhoff.com