September 14, 2023 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

September 14, 1959: The Soviet space probe Luna 2 became the first man-made object to reach the moon as it crashed onto the lunar surface.  Go to article >>.

How to maintain a sense of purpose later in life:  A sense of purpose is important for well-being, experts say. But that drive can drop after experiencing cognitive decline, a new study shows. Here’s what you can do for support.

Barbie toy sales shoot up 25% after the film’s release.  The demand for Barbie dolls significantly increased after the film’s release. Mattel, Barbie’s toymaker, also locked in more than 165 partnerships with brands trying to hop on the pink bandwagon.

Early human relatives purposefully crafted stones into spheres 1.4 million years ago, study claims
The stone spheres were crafted by early hominins who were trying to create symmetry in the objects, a new study suggests.  Read More.

Team Egg or Team Sponge? Scientists divided over identity of mysterious golden orb from bottom of ocean
The weird gold dome-shaped object was found during an NOAA expedition to the Gulf of Mexico and is now being preserved in ethanol until it can be sent for laboratory analysis.  Read More.

The closest black holes to Earth may be 10 times closer than we thought
Astronomers found evidence of multiple stellar-mass black holes lurking in the nearby Hyades cluster, just 150 light-years from Earth. Read More.

PHOTOS OF THE DAY
Oberstdorf, Germany
Bavarian herders drive their cattle along a road as the animals are brought down from their mountainous summer pastures.  Photograph: Matthias Schräder/AP

Mexico City, Mexico
Remains of an alleged ‘non-human’ on display during a briefing on unidentified flying objects at the San Lázaro, the main seat of legislative power of the Mexican government
Photograph: Henry Romero/Reuters

Ripon, UK
Alexander McDonnell, playing the role of a detective, views a floral crime scene figure that forms part of art installation ‘The Blooms of Deception’ a dazzling display of floral art inspired by Agatha Christie.  Photograph: Danny Lawson/PA
Market Closes for September 14^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1960, President Dwight D. Eisenhower signed the Real Estate Investment Trust Act. The law created REITs, which gave everyday stock traders a way to invest in commercial real estate.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 1.4%, or 288.9 to 20,567.84 in Toronto.
The move was the biggest since rising 1.8% on June 2.
Today, financials stocks led the market higher, as all sectors gained; 202 of 226 shares rose, while 21 fell.
Canadian National Railway Co. contributed the most to the index gain, increasing 3.5%. Ballard Power Systems Inc. had the largest increase, rising 7.8%.
Insights
* In the past year, the index had a similar or greater gain 10 times. The next day, it advanced six times for an average 0.8% and declined four times for an average 1%
* This year, the index rose 6.1%, heading for the best year since 2021
* This quarter, the index rose 2%
* So far this week, the index rose 2.5%
* The index advanced 4.3% in the past 52 weeks. The MSCI AC Americas Index gained 13% in the same period
* The S&P/TSX Composite is 1.3% below its 52-week high on Feb. 2, 2023 and 15.1% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 2.2% in the past 5 days and rose 1.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.5 on a trailing basis and 14.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.21t
* 30-day price volatility fell to 11.74% compared with 11.91% in the previous session and the average of 11.39% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 76.7080| 1.2| 24/3
Energy | 52.6458| 1.4| 38/2
Industrials | 50.0675| 1.8| 22/3
Materials | 40.4758| 1.7| 45/4
Information Technology | 21.1589| 1.3| 9/2
Real Estate | 13.1890| 2.7| 21/0
Utilities | 13.0441| 1.5| 15/1
Consumer Discretionary | 9.2004| 1.2| 9/5
Consumer Staples | 8.0322| 0.9| 10/1
Communication Services | 3.7693| 0.5| 5/0
Health Care | 0.6085| 1.0| 4/0
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Canadian National | 22.1300| 3.5| 66.7| -2.9
Enbridge | 17.4400| 2.7| 4.3| -9.8
Canadian Pacific Kansas | 14.9300| 2.2| 77.6| 7.0
Blackberry | -0.6980| -2.5| -4.5| 65.1
Dye & Durham | -1.2870| -19.0| 655.0| 0.2
Laurentian Bank of Canada | -1.3590| -12.5| 919.7| -2.8
US
By Rita Nazareth
(Bloomberg) — Stocks rose after strong economic reports revived speculation the Federal Reserve will be able to engineer a soft landing even if it keeps interest rates higher for longer.
The euro dropped amid bets the European Central Bank will stay on hold after hiking on Thursday.
All major groups in the S&P 500 advanced as the gauge topped 4,500.
The Dow Jones Industrial Average added 1%.
Earlier in the day, equity futures pared gains as retail sales and producer prices beat estimates amid rising energy costs.
Arm Holdings Plc surged 25% in its trading debut.
Ford Motor Co. and General Motors Co. underperformed, with Detroit carmakers facing the threat of a strike.
In late hours, Adobe Inc. fell on a tepid sales outlook.
Traders also braced for Friday’s triple witching options event — which has the potential to trigger volume spikes and volatility.
“Stocks are higher after another round of impressive US economic data suggests the consumer is still doing just fine,” said Edward Moya, senior market analyst for the Americas at Oanda. “Wall Street seems content with the risk of one more Fed rate hike as consumer resilience is expected to gradually weaken. While the US growth story is still alive, the outlook for Europe remains uninspiring as stagflation risks grow.”
The latest data reinforce our view the US economy is headed for a period of moderate growth, avoiding a recession over the coming 12 months, according to Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management.
“That should support equities,” she noted. “However, uncertainty is likely to keep broad equity markets choppy.”

There are still suggestions of an overheating economy that will encourage Fed hawks who believe strong growth today will lead to higher inflationary pressures,” according to Will Compernolle, macro strategist at FHN Financial.  “The odds are still heavily in favor of the Fed leaving rates unchanged next week, but the dot plot showing another
increase later this year,” he noted.
Bond traders have spent most of the last two months worrying about persistent inflation and an economy that seems to be running hot, according to Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. The most-recent economic data just reinforced that, he noted.
“The Fed has indicated that they want to slow down the pace of rate increases, and for that reason they are still likely to keep rates unchanged at next week’s meeting, but all of the data that is coming in higher than expected is going to put pressure on them to raise rates again at the following meeting,” Zaccarelli added.
Bridgewater Associates LP founder Ray Dalio said he doesn’t want to own bonds and prefers cash, highlighting difficulties investors face as global central banks try to manage inflation.
Meantime, the Fed’s former Vice Chair Richard Clarida said fiscal policy risk is more likely to drive up US bond yields than further tightening from the central bank.

Corporate Highlights
* T-Mobile US Inc. is in discussions with a unit of Tillman Global Holdings LLC to build out a fiber-optic network, setting the stage for the No. 2 US wireless carrier to enter the
landline broadband business.
* Walt Disney Co. expects to fall tens of millions of subscribers short of its last publicly stated 2024 target for the Disney+ streaming service, according to people familiar with
the matter. Bloomberg News also reported the company has held exploratory talks about selling its ABC network and TV stations to local broadcaster
Nexstar Media Group Inc.
* Citigroup Inc. issued a $1.5 billion preferred deal, which has characteristics of both stocks and bonds, and may offer investors higher yields than many traditional securities,
according to a person with knowledge of the transaction.
* Delta Air Lines Inc. reduced its expectations for third-quarter profit on higher fuel prices and larger-than-expected maintenance costs, but it reaffirmed its full-year guidance on earnings.
* Microsoft Corp.’s attempt at avoiding deeper European Union scrutiny of its Teams video-conferencing app fell flat with the bloc’s antitrust enforcers readying a formal complaint against the firm’s conduct.
Key events this week:
* US retail sales, PPI, business inventories, initial jobless claims, Thursday
* China property prices, retail sales, industrial production, Friday
* US industrial production, University of Michigan consumer sentiment, Empire Manufacturing index, 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 0.8%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.8% to $1.0643
* The British pound fell 0.7% to $1.2408
* The Japanese yen was little changed at 147.45 per dollar
Cryptocurrencies
* Bitcoin rose 1.8% to $26,695.3
* Ether rose 2.1% to $1,637.03
Bonds
* The yield on 10-year Treasuries advanced four basis points to 4.29%
* Germany’s 10-year yield declined six basis points to 2.59%
* Britain’s 10-year yield declined seven basis points to 4.28%
Commodities
* West Texas Intermediate crude rose 2.2% to $90.46 a barrel
* Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee, Felice Maranz and Edward Dufner.
Have a lovely evening.

Be magnificent!

As ever,

Carolann
Be kind, for everyone you meet is fighting a hard battle. –Plato, 428 BCE-348 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