The Newsletter for Friday, May 2nd, 2025

Dear Friends,
Tangents: Happy Friday.

August 2, 1519: Leonardo da Vinci, died at the Château du Clos Lucé in Amboise, France.
August 2, 1611: King James bible published.
August 2, 1903: Benjamin Spock, pediatrician born.
August 2, 1952: The world’s first commercial jet airliner, the De Havilland Comet !, makes its maiden flight from London to Johannesburg, ushering in the jet age.

1932: Pearl S. Buck wins the Pulitzer Prize.
Naomi Campbell, model, b. 1970.

Mummy reveals preservation secrets
A team of scientists studying a mummified body say it was embalmed in a way they’d never seen before. Through CT scanning, radiocarbon dating and chemical analysis of bone and tissue samples, they were able to determine the unique method in which the “air-dried chaplain” had been preserved.

Tennis legend ousted from US Open Pickleball match
Andre Agassi’s pro pickleball debut came to an end this week. Agassi, 55, and his 18-year-old partner Anna Leigh Waters, the No. 1-ranked player in the world, lost to Len Yang and Trang Huynh-McClain in three sets.

It’s almost time for the Tonys!
Nominations for the 2025 Tony Awards were announced yesterday and three productions earned 10 nods each: “Buena Vista Social Club,” “Death Becomes Her” and “Maybe Happy Ending.”

‘Groundbreaking’ ancient DNA research confirms Pueblo peoples’ ties to famous Chaco Canyon site
New genetic research confirms what the oral traditions of the Picuris Pueblo people of New Mexico have long described — that they’re related to the Indigenous people of Chaco Canyon. Read More.

‘Propaganda’ praising Ramesses II discovered on famous ancient Egyptian obelisk in Paris, Egyptologist claims
A researcher believes he has found hidden messages on a 3,300-year-old ancient Egyptian obelisk that is now in Paris. Read More.

Ancient zircon crystals shed light on 1 billion-year-old meteorite strike in Scotland
Geologists have found that an ancient meteorite hit Scotland 200 million years later than previously thought, which has massive implications for the geological history of the region and some of the U.K.’s earliest land life. Read More.

Dinosaurs might still roam Earth if it weren’t for the asteroid, study suggests
The dinosaurs were not in decline before the asteroid hit, a new study finds. Instead, poor fossilization conditions and unexposed late Cretaceous rock layers mean they’re either
not preserved or hard to find. Read More.

PHOTOS OF THE DAY

Konya, Turkey
A butterfly at the Tropical Butterfly Garden, which holds 20,000 butterflies from 60 different species
Photograph: Cem Genco/Anadolu/Getty Images

Hanoi, Vietnam
A couple practice ballroom dancing as part of their morning exercise
Photograph: Richard Vogel/AP

A bearded tit shows off its resplendent ‘whiskers’ as it perches in the reeds in the Lake Mogan, Turkey
Photograph: Anadolu/Getty Images
Market Closes for May 2^nd, 2025

International Markets

Bonds

Currencies

Commodities

Market Commentary:
There is nothing more terrible than ignorance in action. -Goethe, 1749-1832.
Canada
(MT Newswires)
The Toronto Stock Exchange ended a two-session losing streak in gaining 236 points on Friday as investors here hope that a planned meeting next week between Canada’s new Prime Minister, Mark Carney, and the U.S. President, Donald Trump, will lead to a quick end to a brewing, and likely costly, trade war.
Today, the TSX closed up 0.95% at 25,031.51, its highest level in a month.
Among sectors, most here higher, led by Base Metals (+2.05%) and Industrials (+2.1%).
Telecoms and Utilities were modest decliners.
During his first press conference since receiving the mandate to form a minority government following conclusion of his first federal election campaign last Monday, former Bank of Canada and Bank of England Governor Carney on Friday confirmed he will meet with Trump at the White House on Tuesday.
It is expected the two will discuss Trump’s trade tariffs on Canada and talks could set the stage for negotiation of a new trade and security pact between the two nations.
Leading into Tuesday’s meeting, one Macquarie economist said there were “concerning” signs in Friday’s U.S. employment report, noting the labor market “remains interlinked with trade policy”.
This may be the kind of report that prompts Trump to be more open in his talks with trading partners, including Canada.
David Doyle, head of economics at Macquarie, said the U.S. labor market “remained on solid footing” through mid-April, although this timing likely precedes any forthcoming impacts from trade policy uncertainty.
He added: “While solid overall, there were some concerning signs.
Most notably, a continued rise in the trends in the number of permanent job losers and unemployment amongst new entrants and re-entrants.
While an encouraging result, it is much too soon to sound all clear from the trade policy shock of recent months.”
Doyle added: “Looking ahead the trajectory of the labor market remains interlinked with trade policy developments.
A recent softening in measures against the auto market should help reduce downside risks, but overall uncertainty is likely to continue to be a near-term headwind.”
Elsewhere, Douglas Porter over at BMO Economics in his regular Friday ‘Talking Points’ note noted there was “a morsel” of good news for Canada on the U.S. trade front as USMCA auto parts will be free of tariffs.
He said: “While that’s cold comfort for auto assemblers in Canada and Mexico, at least the two-year parts reprieve will allow for a modicum of normalcy in U.S. production.
Still, the new regime somewhat normalizes the broader tariffs on autos and threatens production in Canada.
As one analyst put it, the parts reprieve is like a band aid on a bullet wound.”
Porter added that he and his colleagues are “highly skeptical” that the, so far, positive tone between the two leaders will translate into a quick reversal of tariffs and counter tariffs.
“The gap between Mr. Trump’s goals (a shift in auto production from Canada to the U.S., as well as the bountiful tariff revenue) and Canada’s are a bridge too far.”
Aside from the fraught trade outlook, Porter noted the economic platform that PM Carney presented today was replete with measures to support the economy, from direct spending to infrastructure and defense, to a cut in the lowest marginal tax rate, to an activist agenda for housing.
Porter also noted this week’s data showed an economy that managed to churn out 1.5% annualized GDP growth in Q1 even amid all the trade and political drama, and a similar pre-tariff burst in auto sales.
“Yet,” Porter said, “financial markets largely yawned at the election results, with GoC yields barely budging for the week, the TSX just edging up, and the Canadian dollar seeing a late week pick up to 72.5 cents, largely due to a sag in the greenback.
While the minority result was a small surprise, Canada has been dealing with such since 2019, and it is likely to prove a stable minority.
After four months of seemingly unending uncertainty, markets willingly accepted that stability.”
Of commodities, gold traded higher mid-afternoon on Friday following two days of losses as the dollar fell after a better-than-expected U.S. jobs report pushes investors to add risk.
Gold for June delivery was last seen up $19.70 to US$3,241.90 per ounce.
But West Texas Intermediate oil closed with a loss on Friday despite signs of cooling trade tensions between the U.S. and China as supply is on the rise, with OPEC+ adding new barrels to the market as it winds down 2.2-million barrels per day of voluntary production cuts.
WTI crude closed $0.95 to settle at US$58.29 per barrel, while July Brent oil was last seen down $0.88 to US$61.25.
Price: 25031.51, Change: +235.96, Percent Change: +0.95
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose 1%, with eight of 11 sectors higher, led by industrials stocks.
As of market close, 107 of 218 stocks fell, while 106 rose.
MDA Space Ltd. led the declines, falling 14%, while Aritzia Inc. increased 14%.
Markets at a Glance:
* S&P/TSX Index rose 1% to 25,032
* Eight of 11 sectors rose
** Industrials gained, up 2.1%
** Communication services declined, down 0.9%
* Crude oil fell 1.1% to $59/bbl
* Natgas rose 5% to $3.65/mmbtu
* Gold rose 0.7% to $3,244/oz
* Silver fell 0.9% to $32/oz
Advancers:
* Aritzia Inc. (ATZ CN) +14%: Aritzia Soars on Across- Board Beat, Room for Upside: Street Wrap
* TerraVest Industries Inc. (TVK CN) +9.5%: TerraVest Capital Raised to Outperform at National Bank
* Algoma Steel Group Inc. (ASTL CN) +7.7%
* Ivanhoe Mines Ltd. (IVN CN) +6%: Kopernik Int’l Adds Ivanhoe Mines, Exits Shanghai Mechanical
* Canadian National Railway Co. (CNR CN) +5.7%: CN Railway Defies Tariff Gloom, Keeps 2025 Growth Outlook
Decliners:
* MDA Space Ltd. (MDA CN) -14%: MDA Space Shares Hit by Friday Selloff, Down as Much as 18%
* Magna International Inc. (MG CN) -5.8%: Magna International Shares Slip on Q1 Earnings Miss: Street Wrap
* Tilray Brands Inc. (TLRY CN) -4.5%: Global X Marijuana Life Rises 2.0%; Skye Bioscience Leads Gain
* Alamos Gold Inc. (AGI CN) -4.2%
* OceanaGold Corp. (OGC CN) -2.5%
US
By Rheaa Rao
(Bloomberg) — Wall Street’s risk-on brigade pushed the S&P 500 to its longest winning streak in two decades, with scars from April’s tariff shock healing on fresh signs of US-China diplomacy.
The S&P 500 and the Nasdaq 100 rose more than 1% each on Friday, notching a second straight week of gains.
A dollar index dropped.
Treasuries slid, with the policy-sensitive two-year yield jumping over 10 basis points to 3.83%.
Oil slipped as OPEC+ discussed making another major production increase.
With demand for havens fading, gold suffered a second consecutive week of losses.
Strong jobs report earlier showed a labor market that’s cooling but remaining resilient.
That calmed fears about the impact President Donald Trump’s would have on the economy.
Recent developments also indicate that trade tensions are easing between China and the US.
“We may have reached peak policy uncertainty,” said Kevin Thozet, a member of the investment committee at Carmignac in Paris.
“There are talks ongoing, and Trump seems to have watered down some of his policies.
If you add in that the earnings season has been positive, the overall backdrop isn’t that bad.”
Despite the rally, some caution that the worst isn’t over.
US stocks may be in for another drop that will push gauges to bear market territory in the coming months, said Tom DeMark, a veteran technical strategist.
Lawrence Creatura, a fund manager at PRSPCTV Capital LLC, added that it may be too soon to conclude how tariff news is affecting US companies.
“A lot of people — based on Liberation Day and the events since — have forecast economic Armageddon and every time economic Armageddon doesn’t happen, it’s good news,” Creatura said.
“Maybe it’s just too early. A lot of the phenomenon that people fear hasn’t really had time to sink into the data yet.”
He noted that companies are reporting earnings for a period ended March 31 while Trump announced tariffs on April 2.
Earlier, China said it’s assessing the possibility of trade talks with the US.
A report also showed that China has started exempting some US goods from tariffs.
Earnings
On Friday, stocks shook off lackluster earnings from Apple Inc. and Amazon.com Inc. that came in Thursday after markets closed.
Apple received at least two downgrades on Friday after its results reinforced concerns over tariffs and its growth potential.
It shares fell 3.7%, bring its year-to-date drop to 18%.
Amazon, meanwhile, said it’s bracing for a tougher business climate in the coming months.
While it reported a decent first quarter on Thursday, it said operating profit in the current period would be weaker than Wall Street anticipated.
Its shares ended the day lower.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.5% as of 4:01 p.m. New York time
* The Nasdaq 100 rose 1.6%
* The Dow Jones Industrial Average rose 1.4%
* The MSCI World Index rose 1.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.1% to $1.1305
* The British pound was unchanged at $1.3278
* The Japanese yen rose 0.3% to 145.01 per dollar
Cryptocurrencies
* Bitcoin rose 0.5% to $96,975.61
* Ether was little changed at $1,839.07
Bonds
* The yield on 10-year Treasuries advanced nine basis points to 4.30%
* Germany’s 10-year yield advanced nine basis points to 2.53%
* Britain’s 10-year yield advanced three basis points to 4.51%
Commodities
* West Texas Intermediate crude fell 1.3% to $58.48 a barrel
* Spot gold fell 0.2% to $3,233.16 an ounce

This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cecile Gutscher, Julien Ponthus, John Viljoen, Edward Bolingbroke and Lu Wang.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann
Nature is the source of all true knowledge.  She has her own logic, her own laws; she has no effect without cause
nor invention without necessity. –Leonardo da Vinci, 1452-1519.

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
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www.carolannsteinhoff.com