October 28, 2021 Newsletter

Dear Friends,

Tangents:
On Oct. 28, 1886, the Statue of Liberty, a gift from the people of France, was dedicated in New York Harbor by President Grover Cleveland. Go to article »

October 28, 1636: Harvard University founded.
Bill Gates, founder of Microsoft, b. 1955.
Julia Roberts, actress, b. 1967.
Erasmus, writer, b. 1467.

A few reasons to think U.S.-China relations aren’t as bad as they seem.

Noodle the pug’s ‘Bones or No Bones’ routine determines what kind of day millions of people will have.  If Noodle has bones, it’s a risk-taking, full-energy kind of day! If he doesn’t, it’s more of a conservative, self-care day. Yes, it makes perfect sense!

PHOTOS OF THE DAY

Insulating foam covers part of the Rhône Glacier near Gletsch to prevent it from melting due to global heating. Swiss glaciers lost 1% of their volume in 2021, despite heavy snow and a cool summer
CREDIT: Fabrice Coffrini/AFP/Getty Images

A Catrina skull made with 18,000 cempasuchil (marigold) flowers is displayed outside the Church of Santa Prisca as part of Day of the Dead celebrations
CREDIT: Anadolu Agency/Getty Images

Attendees place stones of remembrance for victims during a ceremony in Schenley Park to commemorate three years since the attack on the Tree of Life synagogue, where 11 people were killed
CREDIT: Alexandra Wimley/AP

Market Closes for October 28^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1976, more than 184 years after stock trading began on Wall Street, Alice Jarcho became the first woman ever to work regularly on the floor of the New York Stock Exchange.
Canada
By Natasha Abellard
(Bloomberg) — Canadian equities advanced as earnings continued to pour in. The S&P/TSX Composite rose 1.2% in Toronto, its biggest gain since June 1 and follows the previous session’s decrease of 1% Today, information technology stocks led the market higher, as 10 of 11 sectors gained; 159 of 233 shares rose, while 70 fell. Shopify contributed the most to the index gain, jumping 7.0%. Suncor Energy had the largest increase, rising 13.4%.
Insights
* In the past year, the index had a similar or greater gain 11 times. The next day, it advanced eight times for an average 0.6% and declined three times for an average 0.6%
* This year, the index rose 22%, heading for the best year in at least 10 years
* This month, the index rose 5.6%, heading for the biggest advance since November 2020
* So far this week, the index was little changed
* The index advanced 36% in the past 52 weeks. The MSCI AC Americas Index gained 41% in the same period
* The S&P/TSX Composite is 0.5% below its 52-week high on Oct. 26, 2021 and 37.5% above its low on Oct. 30, 2020
* The S&P/TSX Composite is little changed in the past 5 days and rose 5.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20 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$3.3t
* 30-day price volatility rose to 11.16% compared with 10.78% in the previous session and the average of 10.06% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 111.3210| 4.9| 12/3
* Energy | 60.9528| 2.2| 15/7
* Industrials | 27.5188| 1.1| 25/5
* Financials | 26.2308| 0.4| 22/6
* Consumer Discretionary | 8.1151| 1.1| 13/0
* Communication Services | 7.3211| 0.8| 5/1
* Utilities | 5.5831| 0.6| 11/5
* Consumer Staples | 5.2490| 0.7| 12/1
* Real Estate | 1.4721| 0.2| 18/6
* Health Care | 0.7880| 0.4| 7/1
* Materials | -12.0151| -0.5| 19/35
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 92.7800| 7.0| 242.1| 25.2
* Suncor Energy | 39.1300| 13.4| 163.3| 49.9
* Brookfield Asset | | | |
* Management | 13.2700| 1.8| 10.5| 46.1
* Kirkland Lake | -2.5650| -2.5| -22.8| 3.1
* Agnico Eagle Mines | -3.0020| -2.5| -23.9| -23.7
* Barrick Gold | -7.2860| -2.5| -1.3| -18.4

US
By Kamaron Leach and Vildana Hajric
(Bloomberg) — Tech shares faltered in late trading after results from Amazon.com Inc. and Apple Inc. fell short of expectations, marring what had been a strong earnings period for heavyweights in the sector. The biggest exchange-traded fund tracking the Nasdaq 100 slid 0.7% as of 4:35 p.m. in New York, after Amazon warned its holiday profit could be zapped by higher costs and Apple’s sales missed forecasts. The online retailer lost 5% and the iPhone maker dropped 4.8%. The late action overshadowed a strong cash session that saw U.S. stocks rally to an all-time high on optimism that Corporate America was delivering on lofty earnings expectations. Apple and Amazon are the second and third biggest companies in the S&P 500 behind Microsoft Corp., accounting for almost 10% of the index by weighting. The measure is on track for its best month in a year, though Friday’s session is setting up poorly for bulls. The Treasury yield curve inverted between 20 and 30 years on Thursday for the first time since the U.S. government reintroduced a two-decade maturity in 2020. Two-year rates fell below 0.5% after a torrid two day increase.
Investors have been bombarded by earnings all week from some of America’s biggest companies.
Industrial bellwether Caterpillar Inc. rose after an earnings beat. Ford Motor Co. soared after lifting forecasts and resuming dividends.  eBay Inc. dropped after reporting disappointing results late Wednesday. After the close of regular trading, excluding financial firms, companies in the S&P 500 that announced results have boosted net-profit margins by 40 basis points to 12.4% from the previous quarter, according to data compiled by Bank of America Corp. The improvement has spread across major industries, with all but energy and consumer staples posting better margins. Earlier, a report showed that the U.S. economy expanded at an annual rate of 2% in the three months through September, lower than the 2.6% median estimate in a Bloomberg survey, as consumer spending slowed. The GDP price index also slowed from the last quarter, though it still rose more than analysts’ expectations.  A separate report showed that weekly jobless claims fell to a pandemic low. When 20-year Treasury issuance began in May 2020, yields in the sector were about 25 basis points lower than 30-year yields. While expectations for Federal Reserve rate increases beginning next year have flattened the curve generally, demand for the 20-year point appears to be more muted than for longer tenor securities.
The euro gained and European bonds fell after European Central Bank President Christine Lagarde said higher inflation might be around for longer than expected, though the monetary authority expects prices to start moderating next year. The ECB earlier left borrowing costs unchanged and said bond-buying would continue at a moderately lower pace. The Stoxx Europe 600 Index rose. Global stocks are still near all-time peaks, supported by a robust corporate earnings season so far, with profit margins widening on average despite cost pressures. The risk is sentiment could weaken if investors lose confidence in the ability of policy makers to contain inflation while nurturing the economic rebound.  “As long as the economy is not going through recession or anything disastrous, but if things are delayed, if we’re going on the right path, but at a slower pace — which means the policy support persists for longer — still positive for markets,” said Lee Ferridge, head of North America multi-asset strategy at State Street, on Bloomberg TV and Radio’s “Surveillance.”  

Here are some events to watch this week:
* G-20 joint finance and health ministers meeting ahead of the weekend leaders’ summit, Friday
These are the main moves in markets: 
Stocks
* The S&P 500 rose 1% as of 4:01 p.m. New York time
* The Nasdaq 100 rose 1.2%
* The Dow Jones Industrial Average rose 0.7%
* The MSCI World index rose 0.7%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.7% to $1.1679
* The British pound rose 0.3% to $1.3789
* The Japanese yen rose 0.2% to 113.58 per dollar
Bonds
* The yield on 10-year Treasuries advanced three basis points to 1.57%
* Germany’s 10-year yield advanced four basis points to -0.14%
* Britain’s 10-year yield advanced two basis points to 1.01%
Commodities
* West Texas Intermediate crude rose 0.6% to $83.12 a barrel
* Gold futures were little changed
–With assistance from Nathan Hager.

Have a nice evening.

Be magnificent!
As ever,

Carolann

Don’t be humble; you’re not that great. –Golda Meir, 1898-1978.

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