September 3, 2021 Newsletter

Dear Friends,

Tangents: Happy Friday

September 3, 1783~Treaty of Paris ended the American Revolution.

On Sept. 3, 1976, the unmanned U.S. spacecraft Viking 2 landed on Mars to take the first close-up, color photographs of the planet’s surface.  Go to article »

Is this the world’s most beautiful mosquito? 

The FAA now says Richard Branson’s flight to space veered off course.  File that under billionaire problems a lot of us will never have to face.  

A 70-year-old woman started solo travel long before it was trendy.   She quit her job, visited 66 countries and wrote a book about it. 

PHOTOS OF THE DAY

The 1979 Aston Martin Bulldog concept car, now fully restored is unveiled at the Hampton Court Concours of Elegance today
CREDIT: TIM CLARKE FOR THE DAILY TEPEGRAPH

A woman carries her baby through flood water at Old Fangak, South Sudan. This is an entry by Peter Caton in the Moscow International Foto awards 
CREDIT: MEDIADRUMWORLD.COM/PETER CATON

People ride stand-up paddle boards past floating ice and icebergs in Disko Bay in Ilulissat, Greenland. Greenland in 2021 is experiencing one of its biggest ice-melt years in recorded history. Scientists studying the Greenland Ice Sheet observed rainfall on the highest point in Greenland for the first time ever in August
CREDIT: MARIO TAMA/GETTY IMAGES

Market Closes for September 3^rd, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1946, the S&P 500 plunged by 6.73%, leading the U.S. Securities and Exchange Commission to appoint an investigative task force. It concluded that the crash was caused when believers in the Dow Theory of technical analysis all sold at once.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks gained for a sixth week in seven, with gold rallying Friday after a report showed the U.S. economy added fewer jobs than forecast. The S&P/TSX Composite rose for the third day, climbing 0.1%, or 26.31 to 20,821.43 in Toronto. Canadian National Railway Co. contributed the most to the index gain, increasing 1.9%.  New Gold Inc. had the largest increase, rising 14%. Today, 114 of 229 shares rose, while 111 fell; 4 of 11 sectors were higher, led by materials stocks.
Insights
* This year, the index rose 19 percent, heading for the best year in at least 10 years
* This quarter, the index rose 3.3 percent
* So far this week, the index rose 0.9 percent
* The index advanced 27 percent in the past 52 weeks. The MSCI AC Americas Index gained 32 percent in the same period
* The S&P/TSX Composite is 0.1 percent below its 52-week high on Sept. 3, 2021 and 35 percent above its low on Oct. 30, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.6 on a trailing basis and 16.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.27t
* 30-day price volatility fell to 5.70 percent compared with 5.79 percent in the previous session and the average of 8.10 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 43.7060| 1.9| 49/5
* Information Technology | 8.3380| 0.3| 9/3
* Energy | 1.9715| 0.1| 9/13
* Utilities | 0.0724| 0.0| 9/5
* Real Estate | -0.7786| -0.1| 9/15
* Consumer Discretionary | -0.8295| -0.1| 7/6
* Industrials | -1.1608| 0.0| 11/18
* Health Care | -2.9210| -1.2| 0/9
* Communication Services | -3.8954| -0.4| 0/7
* Consumer Staples | -5.5039| -0.7| 4/9
* Financials | -12.6793| -0.2| 7/21
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Canadian National | 14.8200| 1.9| 62.0| 13.6
* Shopify | 9.0710| 0.6| -40.4| 35.4
* Barrick Gold | 6.1970| 2.0| 23.8| -11.2
* Nutrien | -3.1400| -1.0| -50.7| 25.1
* Couche-Tard | -4.7150| -1.6| -13.4| 16.2
* Canadian Pacific | -11.8900| -2.8| 138.1| 2.6

US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — The long-awaited jobs report triggered small moves in the equity market, with investors weighing whether a sharp slowdown in U.S. hiring would make the Federal Reserve delay a reduction in economic stimulus. Traders turned to the perceived safety of technology giants, while most groups in the S&P 500 fell. Volume was low ahead of the Labor Day holiday. The Treasury curve steepened, with the gap between 5- and 30-year yields increasing. Investors also assessed a Bloomberg News report saying that Senate Democrats are discussing a wider range of tax proposals than President Joe Biden envisioned, including levies on stock buybacks, carbon emissions and executive compensation. The addition of 235,000 jobs in August — the smallest gain in seven months — suggests central bankers will need to see improvement before starting to slow bond buying, according to several analysts. Meantime, President Biden said the economic recovery remains “durable and strong,” blaming the retrenchment in hiring on the spread of the delta variant of coronavirus.

Comments:
* “This is a major miss and screams delta disruption,” said Seema Shah, chief strategist at Principal Global Investors.
“Today’s very weak number will likely sway the Fed to a November taper, if not later.”
* “The jobs report means slower economic growth, but also means the Fed is not going to tighten any time soon, and that should significantly limit any negative impact on markets,” said Brad McMillan, chief investment officer at Commonwealth Financial Network.
* “I don’t think it’s going to change much for the Fed taper timeline,” said Zhiwei Ren, portfolio manager at Penn Mutual Asset Management. “The consensus is November, December. We have a number that was weak, but if we look below the surface, it’s quite strong actually because of wage growth.” In the run-up to the jobs report, equity funds attracted $19.2 billion of inflows, trailed by the $12.7 billion allocated to bonds, according to Bank of America Corp. The firm cited EPFR Global data for the week through Wednesday. Outflows from cash funds were the biggest in seven weeks, with $23 billion exiting.

Some corporate highlights:
* Travel companies such as Carnival Corp. and American Airlines Group Inc. fell as employment in leisure and hospitality — which had posted strong gains recently — was flat in August.
* Moderna Inc. said it completed its submission to U.S. regulators for clearance of a booster dose of its Covid-19 vaccine.
* Forte Biosciences Inc. plummeted after its only product in development failed to have an effect on a common skin disease.
* Broadcom Inc., one of the world’s largest chipmakers, climbed after giving a bullish sales forecast, helped by demand for components used in corporate computer networks and smartphones.
Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro was little changed at $1.1880
* The British pound rose 0.2% to $1.3864
* The Japanese yen rose 0.2% to 109.70 per dollar
Bonds
* The yield on 10-year Treasuries rose four basis points to 1.32%
* Germany’s 10-year yield advanced two basis points to -0.36%
* Britain’s 10-year yield advanced four basis points to 0.72%
Commodities
* West Texas Intermediate crude fell 1% to $69.26 a barrel
* Gold futures rose 1.1% to $1,831 an ounce
–With assistance from Sunil Jagtiani, Cecile Gutscher, Yakob Peterseil, Katie Greifeld, Kamaron Leach and Elaine Chen.
Have a wonderful long  Labor Day weekend.

Be magnificent!
As ever,

Carolann

I invented my life by taking for granted that everything I did not like would have an opposite, which I would like. -Coco Chanel, 1883-1971.

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