September 1, 2021 Newsletter

Dear Friends,

Tangents:
On Sept. 1, 1939, World War II began as Nazi Germany invaded Poland. Go to article »

The Wildlife Photographer of the Year competition released some stunning images.  And they remind us of just how wondrous this planet really is.
 
Human infants laugh in a similar pattern to another species, a study finds.  Guess laughter really is the universal language. 

Well, it’s a theory… 

The Diapers.com founder wants to build a utopian megacity.
PHOTOS OF THE DAY

People are silhouetted while riding the Atmosfear double swing, which lifts riders more than 66 meters into the air while spinning at up to 70 km/h, at the Pacific National Exhibition at sunset in Vancouver, British Columbia,
CREDIT: DARRYL DYCK/THA CANADIAN PRESS VIA AP

A visitor attends the immersive art experience “Every wall is a door” by Tokyo based group of artists TeamLab, at Superblue Miami in Miami
CREDIT: CHANDAN KHANNA/AFP VIA GETTY IMAGES

A firefighter attempts to control an active fire off Highway 50 during the Caldor Fire in Meyers, California
CREDIT:DAVID ODISHO/BLOOMBERG

Market Closes for September 1^st, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1862, the San Francisco Stock and Exchange Board was founded by 37 brokers to organize trading in silver and gold mining stocks—primarily based at the booming Comstock Lode in Virginia City, Nev.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets climbed on Wednesday, driven by gains in industrial shares including railway stocks. The S&P/TSX Composite index rose 0.5% in Toronto. Canadian National Railway and Canadian Pacific Railway led industrials higher, with both advancing more than 3% amid their takeover battle for Kansas City Southern.  Canada Goose was the session’s best performer, climbing 5.4% to reverse a four-day losing streak. Meanwhile, Prime Minister Justin Trudeau, facing an unexpectedly tight re-election race, unveiled a campaign platform promising tens of billions of dollars in spending on new initiatives that he says would be financed by a tax-revenue windfall from an expanding Canadian economy.
Insights
* This year, the index rose 19 percent, heading for the best year since 2019
* This quarter, the index rose 2.6 percent
* The index advanced 24 percent in the past 52 weeks. The MSCI AC Americas Index gained 29 percent in the same period
* The S&P/TSX Composite is 0.2 percent below its 52-week high on Sept. 1, 2021 and 34.2 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 0.5 percent in the past 5 days and rose 2 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.4 on a trailing basis and 16.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.24t
* 30-day price volatility fell to 5.69 percent compared with 5.98 percent in the previous session and the average of 8.31 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Industrials | 57.0682| 2.3| 19/10
* Information Technology | 26.5971| 1.1| 10/2
* Financials | 22.6406| 0.4| 21/7
* Energy | 7.5745| 0.3| 13/10
* Real Estate | 4.7582| 0.7| 22/3
* Consumer Discretionary | 3.6516| 0.5| 10/2
* Utilities | 3.6416| 0.4| 13/2
* Communication Services | 2.5989| 0.3| 6/1
* Consumer Staples | -2.5149| -0.3| 10/3
* Health Care | -2.5426| -1.1| 1/8
* Materials | -16.8425| -0.7| 15/38
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian National | 27.6700| 3.8| 304.4| 10.0
* Canadian Pacific | 20.7200| 5.1| 471.8| 3.2
* Shopify | 12.5600| 0.8| -28.4| 35.2
* Suncor Energy | -2.9380| -1.2| 38.2| 9.0
* Couche-Tard | -3.7950| -1.3| 33.6| 16.0
* Barrick Gold | -4.4620| -1.4| -17.4| -12.7

US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — The broader stock market almost wiped out its gains, while mega-cap companies rallied as traders turned to defensive shares after economic data suggested a slowdown in the labor-market recovery. The NYSE FANG+ Index of pandemic darlings such as Apple Inc. and Amazon.com Inc. climbed more than 1%. Real-estate, utility and staples firms in the S&P 500 rose, while energy and financial stocks fell. The benchmark gauge of American equities closed little changed, while the Dow Jones Industrial Average retreated. U.S. companies added fewer jobs than expected in August, ADP Research Institute data showed. While manufacturing expanded at a stronger-than-estimated pace, supply-chain bottlenecks were accompanied by labor constraints. Those figures came before Friday’s payrolls data, with economists expecting a deceleration from the rapid gain in the prior month and a drop in the unemployment rate. “The private payrolls numbers have been all over the map during the pandemic, and often not the strongest indicator of how the rest of the jobs report will play out,” said Mike Loewengart, managing director of investment strategy at E*TRADE Financial. “With so much pressure on improvement on the labor-market front coming from the Fed, this could send a signal that jobs growth is stagnating. That’s likely a good thing for the markets though, as it means easy-money policy continues.”
For Linda Duessel, senior equity strategist at Federated Hermes, it’s still too early to get bearish on the market. While more Wall Street voices are predicting a pullback soon, she told Bloomberg TV Wednesday that the “unbelievable” landscape of strong earnings and fiscal stimulus means stocks can run higher for longer. Meantime, Citigroup Inc.’s Tobias Levkovich is sticking to his bearish call. The bank’s chief U.S. equity strategist predicts the index will end the year at 4,000 before reaching 4,350 by June 2022.  Both levels sit below its last close of 4,522.68. Underpinning his view are stretched valuations and a planned tax rise that will hurt corporate profits. The Treasury 10-year note’s yield has scope to rise to 1.90% in the coming months, a level it hasn’t exceeded since January 2020, according to JPMorgan Chase & Co. technical strategist Jason Hunter. He cited the “aggressive rally that created extreme overbought conditions” as one of the reasons for his prediction. The benchmark bond rate is currently around 1.3%.

Some corporate highlights:
* Netflix Inc. rallied after saying the sitcom “Seinfeld” would begin streaming on Oct. 1.
* Chinese stocks listed in the U.S. rose for a third straight day, rebounding from a selloff fueled by Beijing’s sweeping regulatory crackdown.
* Workhorse Group Inc. tumbled after a news report that the U.S. Securities and Exchange Commission has opened an investigation into the electric-truck startup.

Here are some key events to watch this week:
* U.S. factory orders, durable goods, trade balance, initial jobless claims Thursday
* U.S. jobs report Friday

Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 rose 0.2%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.1838
* The British pound was little changed at $1.3768
* The Japanese yen was little changed at 110.05 per dollar
Bonds
* The yield on 10-year Treasuries declined one basis point to 1.30%
* Germany’s 10-year yield advanced one basis point to -0.37%
* Britain’s 10-year yield declined two basis points to 0.69%
Commodities
* West Texas Intermediate crude fell 0.4% to $68.24 a barrel
* Gold futures were little changed
–With assistance from Sunil Jagtiani, Anchalee Worrachate, Cecile Gutscher, Nancy Moran, Heather Burke and Kamaron

Have a lovely evening.

Be magnificent!

As ever,

Carolann

The most profound relationship we’ll ever have is the one with ourselves. –Charlotte Brontë, 1816-1855.

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