Monday, November 13, 2023

Stocks Slightly Lower into Final Hour on US Debt Rating Downgrade, Mid-East Regional War Fears, Technical Selling, REIT/Utility Sector Weakness

Broad Equity Market Tone:

  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.6 +3.2%
  • DJIA Intraday % Swing .95% +35.6%
  • Bloomberg Global Risk On/Risk Off Index 65.8 -.4%
  • Euro/Yen Carry Return Index 173.4 +.19%
  • Emerging Markets Currency Volatility(VXY) 7.74 +.13%
  • CBOE S&P 500 Implied Correlation Index 21.9 -1.2% 
  • ISE Sentiment Index 131.0 +17.0
  • Total Put/Call 1.05 +.96%
  • NYSE Arms 1.07 +3.9% 
  • NYSE Non-Block Money Flow -$124.2M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 67.8 -1.15%
  • US Energy High-Yield OAS 344.05 +1.2%
  • Bloomberg TRACE # Distressed Bonds Traded 350 unch.
  • European Financial Sector CDS Index 85.12 -2.3% 
  • Deutsche Bank Subordinated 5Y Credit Default Swap 269.5 -1.3%
  • Italian/German 10Y Yld Spread 185.0 basis points -1.0 basis point
  • Asia Ex-Japan Investment Grade CDS Index 115.3 +.43%
  • Emerging Market CDS Index 210.72 -.25%
  • Israel Sovereign CDS 128.2 +4.8%
  • China Corp. High-Yield Bond USD ETF(KHYB) 24.8 unch.
  • 2-Year SOFR Swap Spread -17.5 basis points -.5 basis point
  • TED Spread 23.5 basis points +.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -19.0 -1.5 basis points
  • MBS  5/10 Treasury Spread 170.0 -2.0 basis points
  • Bloomberg CMBS Investment Grade Bbb Average OAS 914.0 +4.0 basis points
  • Avg. Auto ABS OAS 94.0 -4.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 41.5 -.01%
  • 3-Month T-Bill Yield 5.42% +1.0 basis point
  • China Iron Ore Spot 127.5 USD/Metric Tonne -.55%
  • Dutch TTF Nat Gas(European benchmark) 47.9 euros/megawatt-hour +2.66%
  • Citi US Economic Surprise Index 41.6 -3.5 points
  • Citi Eurozone Economic Surprise Index -44.5 unch.
  • Citi Emerging Markets Economic Surprise Index 21.4 +.4 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(460 of 500 reporting) +2.6% -.2 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 239.97 +.11:  Growth Rate +8.6% unch., P/E 18.4 +.3
  • S&P 500 Current Year Estimated Profit Margin 12.13% +1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(7 of 10 reporting) +38.4% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 275.32 +.31: Growth Rate +62.4% +.2 percentage point, P/E 29.1 +.3
  • Bloomberg US Financial Conditions Index .17 -2.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index .25 +1.0 basis point
  • US Yield Curve -40.75 basis points (2s/10s) +2.25 basis points
  • US Atlanta Fed 3Q GDPNow Forecast +2.06% unch.
  • Cleveland Fed Inflation Nowcast Core PCE YoY +3.63% unch.: CPI YoY +3.28% unch.
  • 10-Year TIPS Spread 2.34 unch.
  • Highest target rate probability for Jan. 31st FOMC meeting: 73.3%(-4.4 percentage points) chance of 5.25%-5.5%. Highest target rate probability for March 20th meeting: 65.5%(-3.1 percentage point) chance of 5.25%-5.5%.
Overseas Futures:
  • Nikkei 225 Futures: Indicating +225 open in Japan 
  • China A50 Futures: Indicating +98 open in China
  • DAX Futures: Indicating +75 open in Germany
Portfolio:
  • Slightly Lower:  On losses in my tech/utility/transport sector longs
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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