October 8, 2020 Newsletter

Dear Friends,

Tangents:
In need of some escapism? Here’s an updated list of the 50 best TV shows to check out on Netflix. -NYT.

1871 – Great Chicago Fire.
2001 – US President George W. Bush announces the establishment of the Office of Homeland Security.
2004 – Lifestyle guru Martha Stewart reported to prison to begin serving a sentence for lying about a stock sale. Go to article »

PHOTOS OF THE DAY

Turkeys are seen at Chilcott Turkeys farm in Owermoigne, England.  Mark Chilcott of free-range Chilcott Turkeys farm has reared 1200 smaller turkeys to cater for the low demand for large birds due to the COVID-19 Rule of Six and smaller gatherings this coming Christmas.
CREDIT: FINNBARR WEBSTER/GETTY IMAGES

Shiite pilgrims arrive Karbala, Iraq, for the Arbaeen ritual. Arbaeen holiday marks the end of the forty day mourning period after the anniversary of the martyrdom of Imam Hussein, the Prophet Muhammad’s grandson in the 7th century.
CREDIT: AP PHOTO/ANMAR KHALIL

Twins Buddy Mae Walker (L) and Eleanor Walker (R), examine each other through their child respirators provided by the non-profit TeamRaccoonPDX in Portland, Oregon. The children were told their grandparents sent them space suits to keep them safe. The family sought out the respirators after police used tear gas near their residential street in  Portland.
CREDIT: NATHAN HOWARD/GETTY IMAGES

Market Closes for October 8^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1871, no, a cow didn’t kick over a lantern, but the barn behind Patrick O’Leary’s cottage at 137 DeKoven St. burst into flames that swiftly spread to engulf almost four square miles in the heart of Chicago, destroying the entire downtown overnight. Real-estate prices exploded, capital poured into the city, and Chicago was reborn as the “city of the big shoulders,” with skyscrapers of brick and stone.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities advanced to their highest level since Sept. 2. The S&P/TSX Composite Index rose 0.7% on Thursday, with marijuana shares leading after positive commentary from U.S. vice president candidate Kamala Harris. Six of eleven sectors rose. Oil climbed to the highest in more than a month as Hurricane Delta forces operators to shut in nearly 92% of crude output in the Gulf of Mexico. RP Investment Advisors LP raised C$213 million ($161 million) from University of Toronto Asset Management, the manager of the university’s pension, endowment and short-term working capital funds, at the beginning of this year. It will invest in the debt of companies that have committed to reducing their carbon footprint. Bank of Canada Governor Tiff Macklem said negative interest rates remain an option, even if policy makers aren’t currently considering such a move.
Commodities
* Western Canada Select crude oil traded at a $9.60 discount to West Texas Intermediate
* Spot gold rose 0.3% to $1,893.75 an ounce
FX/Bonds
* The Canadian dollar rose 0.4% to C$1.3200 per U.S. dollar
* The 10-year government bond yield fell 1.7 basis points to 0.607%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the second  day, climbing 0.6 percent, or 106.24 to 16,534.54 in Toronto. The index advanced to the highest closing level since Sept. 2. Today, energy stocks led the market higher, as 6 of 11 sectors gained; 162 of 223 shares rose, while 57 fell. Enbridge Inc. contributed the most to the index gain, increasing 3.2 percent. Canopy Growth Corp. had the largest increase, rising 13.0 percent.
Insights
* So far this week, the index rose 2.1 percent, heading for the biggest advance since the week ended Aug. 7
* This year, the index fell 3.1 percent, heading for the worst year since 2018
* The index advanced 1.5 percent in the past 52 weeks. The MSCI AC Americas Index gained 19 percent in the same period
* The S&P/TSX Composite is 8 percent below its 52-week high on Feb. 20, 2020 and 48 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 2.2 percent in the past 5 days and rose 2.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 25.4 on a trailing basis and 23.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.51t
* 30-day price volatility rose to 16.06 percent compared with 15.94 percent in the previous session and the average of 14.03 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 71.3422| 4.1| 21/2
Materials | 25.0110| 1.0| 45/7
Health Care | 13.0932| 8.2| 8/2
Consumer Discretionary | 9.7464| 1.6| 12/1
Communication Services | 6.9862| 0.8| 5/2
Real Estate | 5.4811| 1.1| 25/2
Financials | -0.6638| 0.0| 17/7
Utilities | -1.6177| -0.2| 11/5
Consumer Staples | -2.9562| -0.4| 2/9
Industrials | -8.4918| -0.4| 12/15
Information Technology | -11.7073| -0.7| 4/5
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. stocks rose to almost five-week highs as traders speculated that lawmakers will eventually provide more stimulus and corporate deal activity increased. Treasury bond yields dropped and the dollar weakened. The S&P 500 finished up 0.8% after conflicting comments from President Donald Trump and House Speaker Nancy Pelosi whipsawed equity markets earlier in the day. Energy, utilities and financials were the biggest gainers in the benchmark index, with crude oil rallying as Hurricane Delta approached the already battered Louisiana coast. ”It’s likely that there will continue to be near-term volatility due to the back-and-forth over a deal,” UBS Global Wealth Management strategists led by Mark Haefele wrote in a note. “A stimulus deal will be struck eventually, central banks will continue to stay supportive, and medical developments still have scope to surprise, in our view.”
Eaton Vance Corp. leaped after the investment firm agreed to be taken over by Morgan Stanley. IBM surged after saying it will spin off its infrastructure unit.  Regeneron Pharmaceuticals Inc. rose after Trump said its antibody cocktail was the “key” to his quick recovery. The president said he would authorize its emergency use. Bulls are now back in control of a market that’s increasingly betting that a Joe Biden presidential victory and gains by Democrats in Congress will be good for equities. The scenario seems to be somewhat quelling volatility even as risks from a split in government to a resurgence of coronavirus cases threaten the economic rebound.
“At this point the market is likely projecting a Biden victory,” said Bill Fitzpatrick, managing director at Logan Capital Management. “It’s a scenario worth considering that we don’t get results for a month or so after the election, that’s a real possibility.” Meanwhile, Pelosi said there won’t be a standalone bill on airlines without a guarantee the other stimulus items are going to be addressed. Trump had earlier touted progress in talks even though there was no sign the two sides are any closer on a deal.
Elsewhere in markets, airlines led European shares higher, helped by as optimism over a Covid-19 treatment. U.K. jet engine-maker Rolls-Royce Holdings Plc posted its best five-day performance on record, after shoring up its finances. Oil futures rose 3.1% after Gulf of Mexico producers shut in 1.7 million barrels a day of crude production ahead of the storm that’s expected to slam into the Louisiana coast on Friday. Gold increased for a second day.
These are some of the main moves in markets:
Stocks
The S&P 500 Index increased 0.8% to 3,446.85 as of 4:01 p.m. New York time, the highest in almost five weeks.
The Dow Jones Industrial Average rose 0.4% to 28,425.71, the highest in five weeks.
The Nasdaq Composite Index climbed 0.4% to 11,420.98, the highest in almost five weeks.
The Nasdaq 100 Index gained 0.4% to 11,550.94.
The Stoxx Europe 600 Index jumped 0.8% to 368.31, the highest in almost three weeks.
Currencies
The Bloomberg Dollar Spot Index decreased 0.2% to 1,170.35.
The euro was little changed at $1.176.
The Japanese yen was little changed at 106 per dollar, the weakest in almost four weeks.
Bonds
The yield on 10-year Treasuries fell two basis points to 0.76%.
The yield on 30-year Treasuries decreased two basis points to 1.56%.
Germany’s 10-year yield fell three basis points to -0.52%, the largest drop in more than two weeks.
Britain’s 10-year yield declined one basis point to 0.289%, the biggest fall in more than a week.
Commodities
West Texas Intermediate crude climbed 3.2% to $41.26 a barrel, the highest in almost three weeks.
Gold strengthened 0.3% to $1,894.64 an ounce.
Copper gained 0.2% to $3.04 a pound, the highest in more than two weeks.

Have a great night.

Be magnificent!
As ever,

Carolann

There is no path to happiness.  Happiness is the path.
                             –Buddha, c. 5^th-4^th century BCE

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