September 11, 2024, Newsletter

Dear Friends,

Tangents:
On Sept. 11, 2001, suicide hijackers crashed two airliners into the World Trade Center in New York, causing the 110-story twin towers to collapse. Another hijacked airliner hit the Pentagon and a fourth crashed in a field in Pennsylvania.  Go to article >>

Four civilians just traveled farther into space than any human since the Apollo era
SpaceX’s Polaris Dawn mission made history Tuesday. But the riskiest part is still to come this week when the crew attempts an unprecedented spacewalk.

The Campbell Soup company is changing its name
After 155 years, the Campbell Soup Company is launching a rebrand. The famed red and white labels are here to stay, but its name will change slightly.

Glenn Lowry, director of New York’s Museum of Modern Art, to step down after 30 years
The longest-serving director of New York’s MoMA will vacate his position in September 2025. His decision was likely considered in paint-staking detail considering he spent decades in the role.

How to watch the ‘Harvest Supermoon’ get eclipsed by Earth next week
September’s full Harvest Moon will drift into Earth’s shadow for a partial eclipse on Sept. 17. It is also the second of four consecutive supermoons this year, making our natural satellite look bigger and brighter than usual. Read More.

16,000-year-old skeleton, crystals and stone tools discovered in Malaysian caves
Archaeologists think the earliest skeleton from the Malaysian excavation may be up to 16,000 years old. Read More.

Japan to start building 1st ‘zeta-class’ supercomputer in 2025, 1,000 times more powerful than today’s fastest machines
Japan’s new state-of-the-art supercomputer, which is due to cost more than $750 million to build, is set to turn on by 2030. Read More.

Saturday Night Live” announced its 50th anniversary season and new cast members.

• Who’s new? Ashley Padilla, Emil Wakim and Jane Wickline — find out more about them here. Others were promoted, including SNL’s first Gen Z cast member, Marcello Hernández.
• What’s next: The new season will premiere Sept. 28, although the first hosts and musical guests haven’t been announced. A three-hour anniversary special will air Feb. 16.

“I’ve done my research, and I’ve made my choice. Your research is all yours to do, and the choice is yours to make.” — Taylor Swift, announcing Tuesday that she will vote for Kamala Harris and Tim Walz in the 2024 presidential election. The pop star has been vocally supportive of Democratic policies and candidates in recent years, often encouraging her supporters to vote and advocating for women’s rights, reproductive health and LGBTQ+ rights.

RIP
Will Jennings was an English professor who became a lyricist for musicians including Eric Clapton and Dionne Warwick, and won an Oscar in 1998 for “My Heart Will Go On,” the theme from “Titanic.” He died at 80.

PHOTOS OF THE DAY

Tynemouth, UK
A surfer enjoys the waves at Long Sands beach on the north-east coast
Photograph: Owen Humphreys/PA

Dresden, Germany
An aerial view of the Carola Bridge, which has partly collapsed over the Elbe River
Photograph: Robert Michael/AP

Mount Kilimanjaro, Tanzania
‘A morning view from above the clouds.’
Photograph: Paulina Murrath
Market Closes for September 11^th, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1789, Alexander Hamilton was sworn in as the first U.S. Secretary of the Treasury.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.9% at 23,211.17 in Toronto.
The index advanced to the highest closing level since Aug. 30 after the previous session’s decrease of 0.1%.
Today, financials stocks led the market higher, as 10 of 11 sectors gained; 164 of 226 shares rose, while 60 fell.
Shopify Inc. contributed the most to the index gain, increasing 4.6%.
Dollarama Inc. had the largest increase, rising 8.2%.
Insights
* This year, the index rose 11%, heading for the best year since 2021
* This quarter, the index rose 6.1%
* The index advanced 15% in the past 52 weeks. The MSCI AC Americas Index gained 23% in the same period
* The S&P/TSX Composite is 0.9% below its 52-week high on Aug. 26, 2024 and 24.2% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 0.7% in the past 5 days and rose 4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.4 on a trailing basis and 15.9 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 rose to 14.71% compared with 14.49% in the previous session and the average of 14.35% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 63.9413| 0.9| 19/8
Information Technology | 41.6660| 2.2| 8/2
Consumer Discretionary | 31.5953| 4.1| 11/2
Industrials | 30.3359| 1.0| 27/1
Materials | 19.3627| 0.7| 32/18
Energy | 9.3118| 0.2| 25/16
Utilities | 7.6494| 0.8| 14/1
Real Estate | 4.1684| 0.8| 17/3
Consumer Staples | 2.3509| 0.2| 7/4
Health Care | 0.6986| 1.0| 4/0
Communication Services | -3.0028| -0.4| 0/5
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 36.3400| 4.6| 5.8| -5.9
Dollarama | 19.9700| 8.2| 119.9| 41.9
Canadian Pacific Kansas | 16.0300| 2.2| 85.5| 11.4
BCE | -1.6570| -0.5| 15.5| -8.4
Enbridge | -1.9310| -0.2| -0.4| 14.5
Pembina Pipeline | -2.2270| -1.0| 164.2| 19.9
US
By Rita Nazareth
(Bloomberg) — A rally in the world’s largest technology companies spurred a stock-market rebound in a volatile session that had Wall Street traders digesting faster-than-anticipated inflation data.
The S&P 500 climbed 1.1% and the Nasdaq 100 rallied 2.2%.
It was the first time since October 2022 that each gauge erased an intraday loss of at least 1.5%.
Chipmakers led gains, with Nvidia Corp. up 8%.
Treasury two-year yields edged up on bets the Federal Reserve will move gradually with rate cuts.
Swap traders cemented bets on only a quarter-point Fed reduction next week.
“Stocks bounced back after the initial post-CPI drop as dip-buyers once again stepped in to save the markets,” said Fawad Razaqzada at City Index and Forex.com.
To Skyler Weinand at Regan Capital, we should expect “more smooth sailing” after an initial Fed cut and post-election as uncertainty fades and investors start to price-in 2025 earnings.
“Stock bulls should favor a slow and controlled vertical walk down the monetary policy stairs rather than a speedy and turbulent roll south to lower stories,” said Jose Torres at Interactive Brokers. “When performing historical analysis, the former case has been consistent with soft landings and earnings buoyancy, while the latter tends to occur during economic slowdowns and profit declines.”
The S&P 500 closed around 5,554. A Bloomberg gauge of the “Magnificent Seven” megacaps jumped 2.6%.
The Dow Jones Industrial Average rose 0.3%.
The Russell 2000 Index of smaller companies added 0.3%.
Treasury 10-year yields advanced one basis point to 3.66%.
The dollar fell.
Oil climbed as Hurricane Francine ripped through key oil-producing zones in the US Gulf of Mexico, prompting traders to cover bearish bets.
The so-called core consumer price index — which excludes food and energy costs — increased 0.3% from July, the most in four months, and 3.2% from a year ago, Bureau of Labor Statistics figures showed Wednesday.
The three-month annualized rate advanced 2.1%, picking up from 1.6% in July, according to Bloomberg calculations.
“This isn’t the CPI report the market wanted to see,” said Seema Shah at Principal Asset Management. “The number is certainly not an obstacle to policy action next week, but the hawks on the committee will likely seize on today’s CPI report as evidence that the last mile of inflation needs to be handled with care and caution.”
To David Russell at TradeStation, while the latest inflation numbers aren’t “runaway dovish,” they confirm the cooling process remains in effect.
Attention could now shift from the Fed as a catalyst toward earnings and the election cycle, he noted.
“The firmer-than-expected core inflation print will make it harder for Jerome Powell to deliver a 50 basis-point cut in September,” said Krishna Guha at Evercore. “We continue to think a starter 50 basis-point cut is the right play and might even now win out. But the odds have moved against this, and risks to markets and the soft landing are higher as a result.” Guha noted that if the Fed doesn’t cut rates by 50 basis points next week, it will possibly do that in November.

Corporate Highlights:
* OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion, according to people familiar with the situation.
* Children’s Place Inc. soared after the apparel retailer reported an adjusted profit for the second quarter, while Wall Street had been projecting a loss.
* GameStop Corp. tumbled after the video-game retailer reported sales that came below consensus estimates.
* Petco Health & Wellness Co. jumped after the pet supply and services company’s outlook signaled turnaround progress.

Key events this week:
* 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 1.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.2%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World Index rose 0.7%
* The Russell 2000 Index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro was little changed at $1.1016
* The British pound fell 0.3% to $1.3043
* The Japanese yen was little changed at 142.40 per dollar
Cryptocurrencies
* Bitcoin was little changed at $57,581.74
* Ether fell 1.6% to $2,340.87
Bonds
* The yield on 10-year Treasuries advanced one basis point to 3.66%
* Germany’s 10-year yield declined two basis points to 2.11%
* Britain’s 10-year yield declined six basis points to 3.76%
Commodities
* West Texas Intermediate crude rose 2.1% to $67.12 a barrel
* Spot gold fell 0.2% to $2,512.59 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Lu Wang.

Have a lovely evening.

Be magnificent!

As ever,

Carolann

Answering machine: “Message one.”

Brian Sweeney:  “Jules, this is Brian – listen, I’m on an airplane that’s been hijacked.  If things don’t go well, and it’s not looking good, I just want you to know I absolutely love you, I want you to do good, go have good times, same to my parents and everybody, and I just totally love you, and I’ll see you when you get there.  Bye, babe.  I hope I call you.”  -9/11 Memorial Museum, Gift of Julie Sweeney Roth.

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