September 10, 2024, Newsletter

Dear Friends,

Tangents:

September 10, 1919: Nealy a year after the end of World Warm1, General Pershing is welcomed home with a parade down Fifth Avenue in NY from 107^th St. to Washington Square.
September 10, 1846: Elias Howe of Spencer, Mass., received a patent for the sewing machine, revolutionizing garment manufacture in the factory and in the home.

Arnold Palmer, golfer, b. 1929.
Stephen J. Gould, biologist, b. 1941.

How fast does evolution happen?
Measuring the pace of evolution is tricky, but some species can evolve as quickly as a few generations. Read More.

‘Remarkable’ 1,000-year-old ring from Scotland’s ‘painted people’ found at destroyed fort
During an archaeological dig at the former site of a Pictish fort, a volunteer unearthed a rare metal ring with a red centerpiece. Read More

‘Put glue on your pizza’ embodies everything wrong with AI search — is SearchGPT ready to change that?
The future of search will include AI, but the technology will need a lot of work and trust before it changes how we access information. Read More.

More tourists behaving badly
Hawaii’s most controversial nature spot has once again become a center of concern, with 14 people recently arrested for accessing the Haiku Stairs on the island of Oahu. The area leading to the 4,000 metal steps is clearly marked as off-limits, not just because of the dangers to visitors but also to protect natural resources. “Someone is going to get hurt or killed,” one conservation official said.

The hidden danger of energy drinks
Many people may think of energy drinks as sports drinks or consider them appropriate for hydration, including for children. Others may believe they are natural energy boosters rather than caffeine-infused beverages. Before you grab your next energy drink, you might want to read this.

The painting was discovered in the attic by an auctioneer during a routine house call to a private estate in Maine. The artwork, a 17th-century painting of a young woman wearing a cap and ruffled collar, was listed as a Rembrandt copy worth as little as $10,000. But several auction bidders appeared to believe it may be a genuine masterpiece.

Beetlejuice’ actors missing from sequel
Director Tim Burton’s new film “Beetlejuice Beetlejuice” brings back several characters from the original 1988 film, including Michael Keaton as the titular character. Now, Burton sheds light on why Geena Davis and Alec Baldwin were not in the sequel.

‘Beetlejuice’ sequel scores $111 million in its domestic debut.

RIP James Earl Jones.

PHOTOS OF THE DAY

Linfen, China
Visitors watching the Hukou waterfall on the Yellow River in northern China’s Shanxi province
Photograph: AFP/Getty Images

Dartmoor, UK
‘The isolated Ditsworthy Warren House near Yelverton.’
Photograph: Kylie Smith

​​​​​​​Stockholm, Sweden
‘Kungsträdgården subway station.’
Photograph: Ewen Craig
Market Closes for September 10^th, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1960, Iran, Iraq, Kuwait, Saudi Arabia and Venezuela formed the Organization of the Petroleum Exporting Countries. OPEC would nearly bring the industrial world to its knees in the 1970s by jacking up the price of oil.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.1% at 23,003.09 in Toronto.
The move follows the previous session’s increase of 1.1%.
Today, energy stocks led the market lower, as 5 of 11 sectors lost; 86 of 226 shares fell, while 138 rose.
Canadian Natural Resources Ltd. contributed the most to the index decline, decreasing 3.5%.
Methanex Corp. had the largest drop, falling 5.5%.
Insights
* This year, the index rose 9.8%, heading for the best year since 2021
* This quarter, the index rose 5.2%
* The index advanced 15% in the past 52 weeks. The MSCI AC Americas Index gained 22% in the same period
* The S&P/TSX Composite is 1.8% below its 52-week high on Aug. 26, 2024 and 23.1% above its low on Oct. 27, 2023
* The S&P/TSX Composite is little changed in the past 5 days and rose 3.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.3 on a trailing basis and 15.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.65t
* 30-day price volatility little changed to 14.49% compared with 14.49% in the previous session and the average of 14.33% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -67.7370| -1.7| 11/30
Consumer Discretionary | -12.3177| -1.6| 2/11
Communication Services | -11.9910| -1.6| 2/3
Consumer Staples | -6.1301| -0.6| 5/6
Utilities | -0.1017| 0.0| 7/7
Industrials | 0.6587| 0.0| 17/11
Health Care | 0.9359| 1.4| 3/0
Real Estate | 5.0330| 1.0| 18/2
Information Technology | 13.6344| 0.7| 9/1
Financials | 15.0909| 0.2| 20/7
Materials | 38.8617| 1.4| 44/8
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Canadian Natural Resources | -23.8200| -3.5| 85.8| 0.9
Suncor | -14.4700| -3.2| 69.2| 15.7
TC Energy | -11.4500| -2.5| 69.1| 20.3
Kinross Gold | 6.1770| 6.2| 3.6| 53.1
Agnico Eagle Mines Limited/Limitee | 6.4560| 1.8| 0.3| 47.7
Barrick Gold | 6.5020| 2.0| -31.4| 11.4
US
By Rita Nazareth
(Bloomberg) — A rally in the world’s biggest technology companies lifted stocks, countering a slew of cautious comments from American bank executives that sent financial shares tumbling.
In a session of many twists and turns, the S&P 500 closed higher.
Tesla Inc. led gains in megacaps after a bullish analyst call.
Oracle Corp. hit an all-time high.
Bank of America Corp. said investment-banking results will come in lower than some on Wall Street expected.
JPMorgan Chase & Co. also tempered its earnings optimism.
Earlier this week, Goldman Sachs Group Inc. signaled its trading unit is on course to drop 10% from the prior year.
Traders also weighed election risks ahead of the first debate between former President Donald Trump and Vice President Kamala Harris.
The match-up promises more clarity for investors who’ve already spent months parsing campaign-trail language around tax proposals, tariff projections, government spending plans and policies on energy, electric vehicles, health care and more.
In the run-up to the consumer price index, a 22V Research survey showed that 56% of respondents believe that core inflation is on a “Fed-friendly glide path”.
Meantime, the share of investors expecting a recession has stayed elevated.
Roughly 48% of investors surveyed expect the reaction to CPI to be “mixed/negligible,” 32% said “risk-on” and only 20% “risk-off.”
“Given the market’s aggressive expectations for Fed rate cuts, a hotter reading should lead to downside volatility,” said Sameer Samana at Wells Fargo Investment Institute. “A cooler print has more two-way risk as it creates more room for the Fed to cut, but may also indicate the economy is slowing faster than anticipated.”
The S&P 500 rose 0.4%.
The Nasdaq 100 added 0.9%.
The Dow Jones Industrial Average fell 0.2%.
A Bloomberg gauge of the “Magnificent Seven” megacaps jumped 1.5%.
The Russell 2000 of small firms was little changed.
The KBW Bank Index sank 1.8%.
Treasury 10-year yields dropped six basis points to 3.64%.
Brent futures slid below $70 as oversupply fears deepened.
US equities are unlikely to slump 20% or more as the risk of a recession remains low against expected interest-rate cuts from the Fed, according to Goldman Sachs Group Inc. strategists.
The team led by Christian Mueller-Glissmann said while stocks could decline into the year end — hurt by higher valuations, a mixed growth outlook and policy uncertainty — the odds of an outright bear market are slim as the economy is also in part being supported by a “healthy private sector.”
Moreover, a historical analysis by the strategists shows that declines of over 20% in the S&P 500 have become less frequent since the 1990s, driven by longer business cycles, lower macroeconomic volatility and “buffering” from central banks.
BofA’s clients were net buyers of $2.4 billion of US equities last week as the S&P 500 logged its worst week since March 2023, quantitative strategists led by Jill Carey Hall said Tuesday.
Eight of 11 sectors saw inflows last week — led by technology — which saw its largest inflow since June.
Communication services received the second-biggest inflow, extending 23 weeks of gains.
Clients ditched real estate, industrials and materials stocks.
“Expectations of easier monetary policy has created a positive backdrop for markets, but because tech stocks have become so overvalued, any market positivity is now seen more in the undervalued areas of the market, rather than the overvalued
parts of the market,” said David Bahnsen at The Bahnsen Group. “Many investors who have been focused on big tech are ignoring valuations, which is one of the most important metrics.”

Key events this week:
* US CPI, Wednesday
* Japan PPI, Thursday
* ECB rate decision, Thursday
* US initial jobless claims, PPI, Thursday
* Eurozone industrial production, Friday
* Japan industrial production, Friday
* U. Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.9%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World Index rose 0.2%
* Bloomberg Magnificent 7 Total Return Index rose 1.5%
* The Russell 2000 Index was little changed
* KBW Bank Index fell 1.8%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.1027
* The British pound was little changed at $1.3086
* The Japanese yen rose 0.6% to 142.31 per dollar
Cryptocurrencies
* Bitcoin rose 1.7% to $57,974.81
* Ether rose 1.7% to $2,381.06
Bonds
* The yield on 10-year Treasuries declined six basis points to 3.64%
* Germany’s 10-year yield declined four basis points to 2.13%
* Britain’s 10-year yield declined four basis points to 3.82%
Commodities
* West Texas Intermediate crude fell 3.7% to $66.19 a barrel
* Spot gold rose 0.4% to $2,517.30 an ounce

This story was produced with the assistance of Bloomberg Automation.

Have a lovely evening.

Be magnificent!

As ever,

Carolann
The positive thinker sees the invisible, feels the intangible, and achieves the impossible. –Winston Churchill, 1874-1965.

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