September 29, 2021 Newsletter

Dear Friends,

Tangents: Michaelmas, St. Michael’s Day
1978 Pope John Paul I was found dead in his Vatican apartment a little more than one month after becoming head of the Roman Catholic Church.  Go to article »

Miguel de Cervantes, writer, b. 1547
Horatio Nelson, naval hero, b. 1758
Enrico Fermi, physicist, b. 1901

AI completed Beethoven’s uncompleted Tenth Symphony.

Climbers reach the bottom of Yemen’s Well of Hell for the first time. 

Sea slugs have figured out how to be solar-powered. (h/t Scott Kominers)

PHOTOS OF THE DAY

Yves Saint Laurent fashion show during Paris Women’s Fashion Week Spring/Summer 2022 
CREDIT: KCS PRESSE / MEGA THEMEGAAGENCY.COM

Australia Zoo release adorable image of baby egret bird. Eduardo is an orphaned cattle egret chick who came into care at the Australia Zoo Wildlife Hospital from another veterinary clinic. Although orphaned, Eduardo is a perfectly healthy baby bird who will be raised by a dedicated wildlife carer, until he is old enough to be released into the wild
CREDIT: AUSTRALIA ZOO/TRIANGLE NEWS

A soldier poses for the media as he walks between recently installed solar panels at the Defence School of Transport (DST), Normandy Barracks
CREDIT: CHRISTOPHER FURLONG/GETTY IMAGES

The sun shines between recently installed solar panels at the Defence School of Transport (DST), Normandy Barracks, in Leconfield
CREDIT: CHRISTOPHER FURLONG/GETTY IMAGES

Market Closes for September 29^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1987, only 13 trading days before the Crash of 1987, Charles Schwab launched its IPO, selling 8 million shares of stock to the public at an original price of $16.50 apiece. Just 20 days later, as the stock market plunged 23% in a single day, Schwab’s stock was hammered down to $6.50 a share.
Canada
By Divya Balji
(Bloomberg) — Canadian stocks fell for a second day as tech companies dragged the benchmark index lower. The S&P/TSX Composite declined to 20,158.14 in Toronto, putting it on track for its biggest monthly decline since October. Lightspeed Commerce contributed the most to the index decline and had the largest move, decreasing 12% after Spruce Point Capital Management said it sees as much as 80% downside risk to the stock. Today, 123 of 234 shares fell, while 107 rose. Five of 11 sectors were lower, led by information technology, healthcare and material stocks. Consumer staples, energy and utility companies rose.

Insights
* This year, the index rose 16 percent, heading for the best year since 2019
* This quarter, the index was little changed, heading for the biggest decline since the first quarter of 2020
* This month, the index fell 2.1 percent, heading for the biggest decline since October 2020
* The index advanced 24 percent in the past 52 weeks. The MSCI AC Americas Index gained 31 percent in the same period
* The S&P/TSX Composite is 3.5 percent below its 52-week high on Sept. 7, 2021 and 30.7 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is down 1.2 percent in the past 5 days and fell 2.4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.2 on a trailing basis and 16 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.18t
* 30-day price volatility fell to 9.51 percent compared with 9.55 percent in the previous session and the average of 7.02 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -33.9761| -1.5| 2/13
* Materials | -16.1058| -0.7| 11/44
* Health Care | -2.9225| -1.4| 1/8
* Communication Services | -1.3424| -0.1| 3/4
* Consumer Discretionary | -0.9129| -0.1| 4/9
* Real Estate | 1.9229| 0.3| 15/8
* Utilities | 2.9656| 0.3| 10/6
* Industrials | 4.3035| 0.2| 16/13
* Financials | 4.9070| 0.1| 19/8
* Energy | 11.9699| 0.5| 14/9
* Consumer Staples | 13.1766| 1.8| 12/1
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Lightspeed Commerce| | | |
* Inc | -14.5500| -11.7| 256.8| 40.2
* Shopify | -13.3100| -1.0| -15.2| 19.5
* Barrick Gold | -6.1720| -2.2| 8.2| -21.7
* Agnico Eagle Mines | 3.7120| 3.5| 50.1| -27.2
* George Weston | 4.0930| 6.4| 41.9| 43.6
* Canadian Natural | | | |
* Resources | 5.6810| 1.5| -56.8| 51.3

US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — Stocks pared most of their gains into the close as a rally in technology companies fizzled out. The Nasdaq 100 notched its third straight day of losses after earlier climbing about 1%. Dip buyers helped push the S&P 500 higher, with defensive industries such as utilities and consumer staples among the best performers.  The dollar rose to the highest level since November 2020, while Treasuries were little changed. President Joe Biden and his aides scrambled to break a deadlock among Democrats that has stalled progress on his economic plans as the White House and Congress are staring down deadlines to keep the government running and avoid a default. Federal Reserve Chair Jerome Powell voiced cautious optimism that supply-chain disruptions lifting inflation would ultimately prove temporary. “Jitters surrounding elevated levels of inflation and slowing growth are likely to remain for some time,” said Fiona Cincotta, senior financial-markets analyst at City Index. “U.S. debt-ceiling discussions could be in focus amid a quiet economic calendar.” The U.S. Treasury is likely to exhaust its ability to borrow as soon as late October, according to the Congressional Budget Office, in the latest warning to lawmakers following their failed efforts to address the debt ceiling this week.
A majority of investors harbor fears of persistently high inflation, with a 20% pullback in stocks seen as more likely than a 20% rally, according to a Citigroup Inc. survey of clients. Though most expected modest gains next year in the S&P 500, price pressures and a policy reversal by the Fed are big risks, according to the survey of more than 90 pension, mutual and hedge funds this month. A gauge of U.S. pending home sales rebounded in August to a seven-month high as prospective buyers welcomed more attractive pricing and additional inventory. The figures suggest housing activity is firming after retreating from the record-high levels seen last year.

Some corporate highlights:
* Walgreens Boots Alliance Inc. is weighing an acquisition of Evolent Health Inc., the health-care group that has been under activist investor pressure to consider a sale, according to people familiar with the matter.
* Merck & Co. has agreed to buy drugmaker Acceleron Pharma Inc. for $180 per share, according to people familiar with the matter.
* Boeing Co. rallied after the aerospace giant was upgraded to outperform at Bernstein on prospects of a travel rebound.
* Morgan Stanley slumped after Oppenheimer downgraded the shares, citing a lack of upside to its valuation.

Here are some events to watch this week:
* House Financial Services Committee hearing on the Fed, Treasury’s pandemic response, Thursday
* China Caixin manufacturing PMI, non-manufacturing PMI, Thursday
* Univ. of Michigan sentiment, ISM manufacturing, U.S. construction spending, spending/personal income, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.1%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.7%
* The euro fell 0.8% to $1.1594
* The British pound fell 0.9% to $1.3420
* The Japanese yen fell 0.4% to 111.99 per dollar
Bonds
* The yield on 10-year Treasuries fell one basis point to 1.53%
* Germany’s 10-year yield declined one basis point to -0.21%
* Britain’s 10-year yield was little changed at 0.99%
Commodities
* West Texas Intermediate crude fell 0.9% to $74.61 a barrel
* Gold futures fell 0.7% to $1,725.10 an ounce
–With assistance from Andreea Papuc and Srinivasan Sivabalan.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

With humbleness, kindness, and self-sacrifice, you will take the weapon from any enemy. 
Any fire dies if there is insufficient wood. –Buddha, 563 BC-483 BC.

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