Tuesday, November 28, 2023

Stocks Finish Slightly Higher on Lower Long-Term Rates, Rising Fed Rate-Cut Hopes, Loose US Financial Conditions, Tech/Alt Energy Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Slightly Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 12.7 -.3%
  • DJIA Intraday % Swing .60% +62.8%
  • Bloomberg Global Risk On/Risk Off Index 63.9 -1.5%
  • Euro/Yen Carry Return Index 173.4 -.54%
  • Emerging Markets Currency Volatility(VXY) 7.7 -.13%
  • CBOE S&P 500 Implied Correlation Index 19.9 +.7% 
  • ISE Sentiment Index 137.0 +12.0
  • Total Put/Call 1.0 -10.7%
  • NYSE Arms .81 -44.1% 
  • NYSE Non-Block Money Flow -$107.2M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 63.4 -.48%
  • US Energy High-Yield OAS 343.3 +.79%
  • Bloomberg TRACE # Distressed Bonds Traded 328 unch.
  • European Financial Sector CDS Index 79.5 -1.2% 
  • Deutsche Bank Subordinated 5Y Credit Default Swap 249.1 +1.3%
  • Italian/German 10Y Yld Spread 176.0 basis points +2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 99.7 +2.72%
  • Emerging Market CDS Index 189.02 +.58%
  • Israel Sovereign CDS 118.2 -.93%
  • China Corp. High-Yield Bond USD ETF(KHYB) 25.4 -.1%
  • 2-Year SOFR Swap Spread -14.75 basis points +4.0 basis points
  • TED Spread 24.5 basis points +1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -15.5 -.5 basis point
  • MBS  5/10 Treasury Spread 153.0 -4.0 basis points
  • Bloomberg CMBS Investment Grade Bbb Average OAS 946.0 +8.0 basis points
  • Avg. Auto ABS OAS 94.0 +2.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 41.93 +.25%
  • 3-Month T-Bill Yield 5.41% +1.0 basis point
  • China Iron Ore Spot 128.5 USD/Metric Tonne -.27%
  • Dutch TTF Nat Gas(European benchmark) 42.77 euros/megawatt-hour -2.75%
  • Citi US Economic Surprise Index 27.5 -2.7 points
  • Citi Eurozone Economic Surprise Index -17.10 +1.6 points
  • Citi Emerging Markets Economic Surprise Index 21.9 -.8 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(482 of 500 reporting) +4.3% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 242.14 +.08:  Growth Rate +9.4% unch., P/E 18.9 +.1
  • S&P 500 Current Year Estimated Profit Margin 12.14% -1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(8 of 10 reporting) +50.6% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 283.18 +.40: Growth Rate +33.1% +.2 percentage point, P/E 29.2 -.2
  • Bloomberg US Financial Conditions Index .46 -1.0 basis point
  • Bloomberg Euro-Zone Financial Conditions Index .28 -10.0 basis points
  • US Yield Curve -40.75 basis points (2s/10s) +9.5 basis points
  • US Atlanta Fed 4Q GDPNow Forecast +2.10% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 49.6% +2.7 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +3.55% unch.: CPI YoY +3.04% -3.0 basis points
  • 10-Year TIPS Spread 2.24 +1.0 basis point
  • Highest target rate probability for Jan. 31st FOMC meeting: 95.6%(+6.2 percentage points) chance of 5.25%-5.5%. Highest target rate probability for March 20th meeting: 64.6%(-5.8 percentage points) chance of 5.25%-5.5%.
Overseas Futures:
  • Nikkei 225 Futures: Indicating -113 open in Japan 
  • China A50 Futures: Indicating +19 open in China
  • DAX Futures: Indicating +32 open in Germany
Portfolio:
  • Slightly Higher:  On gains in my tech/utility sector longs
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

No comments: