October 5, 2021 Newsletter

Dear Friends,

Tangents:
On October 5, 1947, in the first televised White House address, President Truman asked Americans to refrain from eating meat on Tuesdays and poultry on Thursdays to help stockpile grain for starving people in Europe.  Go to article »

1877-Chief Joseph surrenders.
Tecumseh, Shawnee chief, d. 1813
Bob Geldof, singer/activist, b. 1951
Kate Winslet, actress, b. 1975.

William Shatner, 90, is headed to space on Jeff Bezos’ Blue Origin mission.  Captain Kirk would be proud. 

Censored letters between Marie-Antoinette and her rumored lover revealed in full with X-rays.  Among the censored words: “beloved,” “tender friend,” “adore,” and “madly,” ooh

The Earth isn’t as bright as it once was.  Not like, smarts-wise. That would be a really insulting thing to hear this early in the morning. 

Syukuro Manabe, Klaus Hasselmann and Giorgio Parisi win Nobel Prize for physics.
The 2021 award goes to the three scientists for ground-breaking work in predicting global warming and for the understanding of complex physical systems.

The Late Night Hosts weighed in on the Facebook outage yesterday:

“People started noticing something was wrong this morning when they felt happy for more than 30 minutes.” — JAMES CORDEN

“For hours, users were left in suspense about whether their second cousin thinks the vaccine gives your pancreas Wi-Fi.” — STEPHEN COLBERT

“So if you wanted to share photos, you had to go door-to-door with Polaroids of your brunch,” Stephen Colbert joked.

“As the panic grew, Facebook did not say what might be causing the outage. Now, I’m no computer expert, but my theory is a just god?” — STEPHEN COLBERT

“Now, clearly, this is the day the machines have risen up and are taking over, but don’t panic: They only know our thoughts, feelings, family, friends,
location, facial patterns and banking data.” — STEPHEN COLBERT

“It was so bad that the only way Facebook could let the world know what was going on — and this is true — was by posting a message on Twitter. ” — STEPHEN COLBERT

“That must hurt. Facebook communicating problems on Twitter? That’s like Burger King running out of fries and having to announce it on a Big Mac.” — STEPHEN COLBERT

“Yes, Facebook’s entire site crashed. They were like, ‘Oh, my god, this is the best press we’ve had in months!’” — JIMMY FALLON

“Facebook was only down for a day and in that short time, everyone got the vaccine.” — JIMMY FALLON

“Before Facebook, I had no problems with any of my aunts or uncles. It was all — all birthday checks in the mail.” — JIMMY KIMMEL

“I gotta check out Facebook one of these days. I hear bad things.” — STEPHEN COLBERT

“With no social media, I ended up spending most of the day talking to my son. He’s really nice!” — JAMES CORDEN
PHOTOS OF THE DAY

John Moore the head gardener at Churchill College in Cambridge trimming the wall of Boston Ivy on Tuesday morning as it turns red in the autumn weather. One of the largest walls of Boston Ivy in Britain is turning a blaze of red today as Britain is set to see an Indian summer later this week
CREDIT: GEOFF ROBINSON

A polar bear plays in the Fireweed plants on an island off the Hudson Bay Canada
CREDIT: DENNIS FAST/MERCURY PRESS

People visit an art piece by Turkish-American new media digital artist Refik Anadol’s entitled ‘Machine Hallucination Space: Metaverse Lot 1’ at the Digital Art Fair Asia in Hong Kong, China
CREDIT: JEROME FAVRE/EPA-EFE/SHUTTERSTOCK

Market Closes for October 5^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1993, Daimler-Benz became the first German company to be listed on the New York Stock Exchange.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.7 percent at 20,183.43 in Toronto. The move was the biggest since rising 0.8 percent on Sept. 22 and follows the previous session’s decrease of 0.5 percent. Royal Bank of Canada contributed the most to the index gain, increasing 0.8 percent. Stelco Holdings Inc. had the largest increase, rising 8.6 percent. Today, 155 of 234 shares rose, while 76 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index rose 16 percent, heading for the best year since 2019
* The index advanced 23 percent in the past 52 weeks. The MSCIAC Americas Index gained 28 percent in the same period
* The S&P/TSX Composite is 3.4 percent below its 52-week high on Sept. 7, 2021 and 30.9 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is little changed in the past 5 days and fell 3.1 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.2 on a trailing basis and 16 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.16t
* 30-day price volatility rose to 9.41 percent compared with 9.24 percent in the previous session and the average of 7.73 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 58.7683| 0.9| 24/4
* Energy | 24.0885| 0.9| 16/7
* Industrials | 18.6050| 0.8| 24/6
* Materials | 12.2345| 0.5| 30/23
* Consumer Staples | 7.6268| 1.0| 10/3
* Consumer Discretionary | 7.5675| 1.0| 11/2
* Information Technology | 3.0617| 0.1| 10/5
* Health Care | 2.9565| 1.5| 7/2
* Communication Services | 1.2451| 0.1| 6/1
* Real Estate | 0.2732| 0.0| 14/10
* Utilities | -5.2611| -0.6| 3/13
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Royal Bank of Canada| 10.3800| 0.8| 31.2| 21.7
* TD Bank | 10.2400| 1.0| 257.3| 19.4
* Suncor Energy | 9.8300| 3.5| -13.1| 30.3
* TC Energy | -3.1260| -0.7| 131.5| 18.6
* Constellation | | | |
* Software | -3.3440| -1.2| 4.4| 23.3
* Enbridge | -4.2180| -0.6| -6.4| 24.2

US
By Kamaron Leach and Vildana Hajric
(Bloomberg) — Stocks rebounded from Monday’s rout and Treasuries fell as investors assessed the state of the economy before a key payroll report Friday. The S&P 500 and Nasdaq 100 gained — led by advances in mega-cap tech names — while the 10-year yield spiked to 1.53%. Investors are anxiously awaiting the latest labor market data for a signal on the Federal Reserve’s next move. An ISM reading on the U.S. services sector activity came in better than expected Tuesday, likely keeping the Fed on track to announce a pullback in bond-buying. The advances helped ease concerns of a market correction as the S&P 500 rose back above its 100-day moving average. A wall of worry has been building amid elevated inflation, fading recovery indicators, a spreading energy crisis, and U.S. political bickering. The Nasdaq 100’s gain came after a measure of its relative strength fell to the lowest since March. “While some parts of the stock market have declined more than others, we still have a ways to go before reaching an actual correction in the major stock indexes,” said David Bahnsen, chief investment officer at Newport Beach, California-based wealth management firm The Bahnsen Group. “It is impossible to get overly worried about these incredibly modest market declines, which are mostly concentrated in highly overpriced technology stocks.”
The S&P 500 information technology sector is down about 6% from a high in August as rising inflation and Treasury yields have prompted a rotation out of high-growth companies trading at a premium. Meanwhile, the energy sector is up 17% from a low in September as Europe braces for a winter energy crunch. European natural gas contracts soared on Tuesday to an unprecedented 114 euros per megawatt-hour, compared with 15.49 euros in February. Crude oil in New York also gained for a fourth day. “I think we’re going to most likely continue this pattern of pretty rapid sector shifts,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “You’ve got these rotational corrections that have been happening under the surface, and yes, the deterioration has been more significant recently in the Nasdaq, but throughout the course of this year, you’ve seen various periods where breadth deterioration was more severe in areas like the Nasdaq or small cap.”
The latest Fed commentary ahead of the U.S. nonfarm-payrolls data came on Monday from St. Louis Fed President James Bullard who said elevated price pressures may be changing the mentality of businesses and consumers by making them more accustomed to higher inflation. “The nonfarm payrolls report will be released on Friday and will give us a sense of how the Delta variant has impacted the employment environment,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. “We don’t expect the report to have a meaningful market impact; Covid-19 cases are also on the decline again, and Federal Reserve communication points to reducing their market support as long as the report is ‘decent.’” The dollar rose, rebounding from a three-day selloff. Bitcoin extended a rally, surpassing the $50,000 mark. And equities in Europe and Hong Kong rose, while those in Japan fell.
Here are some events to watch this week:
* Rate decision in New Zealand on Wednesday
* Reserve Bank of India monetary policy decision on Friday
* The U.S. Labor Department releases unemployment and job creation data Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.1% as of 4:01 p.m. New York time
* The Nasdaq 100 rose 1.4%
* The Dow Jones Industrial Average rose 0.9%
* The MSCI World index rose 0.7%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.1599
* The British pound rose 0.1% to $1.3625
* The Japanese yen fell 0.5% to 111.46 per dollar
Bonds
* The yield on 10-year Treasuries advanced five basis points to 1.53%
* Germany’s 10-year yield advanced three basis points to -0.19%
* Britain’s 10-year yield advanced seven basis points to 1.08%
Commodities
* West Texas Intermediate crude rose 2.1% to $79.22 a barrel
* Gold futures fell 0.4% to $1,761.10 an ounce
–With assistance from Nathan Hager and Lu Wang.
Have a wonderful evening.

Be magnificent!

As ever,

Carolann

If you want to lift yourself up, lift up someone else. -Booker T. Washington, 1856-1915.     

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