September 12, 2024, Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

September 12, 1959: The Soviet Union launches Luna 2, the first space probe to hit the Moon.

DNA of ‘Thorin,’ one of the last Neanderthals, finally sequenced, revealing inbreeding and 50,000 years of genetic isolation
Thorin — nicknamed after a dwarf in J. R. R. Tolkien’s “The Hobbit” — is also called the “last Neanderthal” because he may have lived as recently as 42,000 years ago. Read More.

Easter Island’s population never collapsed, but it did have contact with Native Americans, DNA study suggests
A DNA analysis of 15 Rapa Nui individuals revealed that there was never a population collapse on Easter Island and that the inhabitants commingled with Native Americans. Read More.

‘God of Chaos’ asteroid Apophis could still hit Earth in 2029, study hints — but we won’t know for 3 more years
New simulations reveal that there is an extremely small chance that the “city-killer” asteroid Apophis could be nudged onto a collision course with Earth by another asteroid before it flies past our planet in 2029.
Read More.

Amazingly simple discovery extends Li-ion battery lifespan by 50% — meaning you don’t have to replace your gadgets as often
Batteries used in smartphones or in EVs normally charge for 10 hours on their first cycle, but turbo-charging them to 100% capacity in 20 minutes may lead to a 50% longer lifespan. Read More.

Top moments from the 40th MTV Video Music Awards
Taylor Swift shared a heartfelt tribute, Katy Perry soared through the air and Sabrina Carpenter kissed an alien. These are the highlights from the 2024 MTV Video Music Awards.

Sony unveils faster, more powerful PlayStation 5 Pro
The PS5 Pro will go on sale in November but some gamers may be PS-ed off at the console’s highest ever price

Tom Cruise’s payday for that Olympic stunt may surprise you
The “Mission: Impossible” star performed a daredevil stunt at the Summer Olympics — but how much was he paid? Here’s the answer.

PHOTOS OF THE DAY

New York, US
The annual Tribute in Lights display is framed by the Empire State Building, reflected off a mirror at Summit One Vanderbilt, on the 23rd anniversary of the 9/11 terror attacks
Photograph: Alexi Rosenfeld/Getty Images

Oslo, Norway
‘I spotted this couple having an interesting conversation on a recent trip. Just one of many charming sculptures by the Norwegian artist Gustav Vigeland in Vigeland Park.’
Photograph: Neil Braithwaite

​​​​​​​Brussels, Belgium
‘A new neighbour? Brussels is home to many parrots, it must be the chocolate and beer.’
Photograph: Robert
Market Closes for September 12^th, 2024

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1836, the New York Stock Exchange prohibited members from trading on the street outside. But open-air trading persisted under the nickname of “the Curb,” in what was to become a forerunner of the American Stock Exchange
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 1.1%, or 263.96 to 23,475.14 in Toronto.
The move was the biggest since rising 1.2% on Aug. 15.
Today, materials stocks led the market higher, as 10 of 11 sectors gained; 189 of 226 shares rose, while 36 fell.
Canadian National Railway Co. contributed the most to the index gain, increasing 2.6%. B2Gold Corp. had the largest increase, rising 12.9%.
Insights
* In the past year, the index had a similar or greater gain 14 times. The next day, it advanced 12 times for an average 0.5% and declined twice for an average 1%
* This year, the index rose 12%, heading for the best year since 2021
* This quarter, the index rose 7.3%, heading for the biggest advance since the second quarter of 2021
* So far this week, the index rose 3%
* The index advanced 16% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is at its 52-week high and 25.6% above its low on Oct. 27, 2023
* The S&P/TSX Composite is up 2.1% in the past 5 days and rose 4.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.7 on a trailing basis and 16.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.68t
* 30-day price volatility fell to 14.63% compared with 14.71% in the previous session and the average of 14.36% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 115.3951| 4.1| 49/3
Financials | 46.0085| 0.6| 22/5
Industrials | 35.6799| 1.1| 22/5
Energy | 32.3753| 0.8| 36/5
Utilities | 16.5750| 1.8| 15/0
Communication Services | 6.5197| 0.9| 4/1
Consumer Staples | 6.1975| 0.6| 9/2
Real Estate | 3.2037| 0.6| 15/5
Consumer Discretionary | 1.4914| 0.2| 9/4
Information Technology | 0.7637| 0.0| 6/4
Health Care | -0.2439| -0.4| 2/2
================================================================
| | |Volume VS| YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move|% Change | (%) | (%)
================================================================
Canadian National | 16.4800| 2.6| 1.3| -2.6
Barrick Gold | 13.9800| 4.3| 16.4| 16.9
Agnico Eagle Mines Limited/Limitee | 13.5400| 3.6| 63.8| 53.1
Shopify | -1.9440| -0.2| 32.4| -6.1
CIBC | -2.2940| -0.4| 90.7| 29.6
Couche-Tard | -4.0640| -1.0| 149.4| -2.8
US
By Rita Nazareth
(Bloomberg) — A rally that’s already added over $1.3 trillion to the S&P 500 this week powered ahead as the latest economic data did little to alter bets on a series of Federal Reserve rate cuts.
Every major group in the US equity benchmark rose, with both mega and small caps outpacing the broader market.
In late hours, Adobe Inc. tumbled on a disappointing revenue outlook.
Treasuries saw small moves.
Swap contracts priced in slightly higher odds of a half-point Fed reduction next week after a Wall
Street Journal report said policymakers were considering whether to cut by 25 or 50 basis points.
The producer price index picked up slightly in August after the previous month’s numbers were revised lower, and categories that feed into the Fed’s preferred inflation gauge were muted.
Separate data showed jobless claims ticked up.
“Recognizing that the Fed can surprise ‘dovish’ right now, whereas it cannot surprise ‘hawkish’, we think PPI sustains a lingering possibility of a starter 50, which would take less risk with the soft landing,” said Krishna Guha at Evercore.
The S&P 500 rose 0.8%.
The Nasdaq 100 added 1%.
The Dow Jones Industrial Average gained 0.6%.
A gauge of the “Magnificent Seven” mega caps climbed 1.4%.
The Russell 2000 advanced 1.2%.
Nvidia Corp. paced gains in chipmakers, though Micron Technology Inc. sank on a downgrade.
Wells Fargo & Co. slid on news the US is seeking fixes to money-laundering controls.
Treasury 10-year yields advanced three basis points to 3.68%.
German bunds snapped a seven-day winning streak after European Central Bank President Christine Lagarde said rates will be sufficiently restrictive in the wake of an expected quarter-point interest rate cut to 3.5%.
Oil climbed.
Gold hit an all-time high.
The wholesale inflation data followed the more closely watched consumer price index, which showed underlying inflation accelerated in August.
Yet policymakers have made it clear that they’re currently highly focused on softness in the labor market, which is more likely to drive policy discussions in the months ahead.
“With PPI basically repeating yesterday’s CPI reading and jobless claims in line with expectations, the decks have been cleared for the Fed to kick off a rate-cutting cycle,” said Chris Larkin at E*TRADE from Morgan Stanley. “The markets are anticipating an initial 25 basis-point cut, but the discussion will soon turn to how far and fast the Fed is likely to trim rates over time.
Eric Johnston at Cantor Fitzgerald says that going into the Fed decision, there’s a “very good” set-up for small caps.
That’s the group considered to have the most-positive leverage to a policy easing cycle, he noted, citing the fact that the Russell 2000 has largely underperformed the S&P 500 in the past few weeks.
“The consensus is that the Fed will cut 25 bps, but there is of course a chance that they end up cutting 50 bps,” Johnston said. Small caps “would get a significant rally if it was 50 and still rally with a very dovish 25,” he noted.

Corporate Highlights:
* Verizon Communications Inc. will take a pre-tax charge of as much as $1.9 billion in the third quarter tied to 4,800 planned job cuts.
* Delta Air Lines Inc. said profit this year could reach the high end of its prior guidance – if investors ignore the financial blow from this summer’s system meltdown.
* Alaska Air Group Inc. boosted its outlook for third-quarter profit on strong summer demand and lower-than-expected fuel costs.
* American Airlines Group Inc. flight attendants approved a contract that will immediately raise wages as much as 20% and increase pay and benefits by $4.2 billion over the deal’s five- year term.
* Kroger Co. lifted its full-year sales guidance as the grocery-store operator benefits from consumers prioritizing spending on groceries and other essentials.

Key events this week:
* 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 0.8% as of 4 p.m. New York time
* The Nasdaq 100 rose 1%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World Index rose 1%
* Bloomberg Magnificent 7 Total Return Index rose 1.4%
* The Russell 2000 Index rose 1.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.5% to $1.1069
* The British pound rose 0.6% to $1.3117
* The Japanese yen rose 0.3% to 141.88 per dollar
Cryptocurrencies
* Bitcoin rose 1.5% to $58,350.53
* Ether rose 0.5% to $2,360.07
Bonds
* The yield on 10-year Treasuries advanced three basis points to 3.68%
* Germany’s 10-year yield advanced four basis points to 2.15%
* Britain’s 10-year yield advanced two basis points to 3.78%
Commodities
* West Texas Intermediate crude rose 2.9% to $69.23 a barrel
* Spot gold rose 1.8% to $2,558.15 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
Vitality shows in not only the ability to persist, but the ability to start over. -F. Scott Fitzgerald, 1896-1940.

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 (Text Only)
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com