Wednesday, February 07, 2024

Stocks Rising into Final Hour on Earnings Outlook Optimism, Stable Long-Term Rates, Technical Buying, Tech/Consumer Discretionary Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Most Sectors Rising
  • Volume: Heavy
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.9 -.9%
  • DJIA Intraday % Swing .40 -20.9%
  • Bloomberg Global Risk On/Risk Off Index 61.8 +1.5%
  • Euro/Yen Carry Return Index 172.3 +.3%
  • Emerging Markets Currency Volatility(VXY) 7.1 -1.0%
  • CBOE S&P 500 Implied Correlation Index 17.5 -1.2% 
  • ISE Sentiment Index 149.0 unch.
  • Total Put/Call .88 +14.3%
  • NYSE Arms 1.23 +40.0% 
  • NYSE Non-Block Money Flow +$262.9M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 55.3 -.52%
  • US Energy High-Yield OAS 318.57 -2.1%
  • Bloomberg TRACE # Distressed Bonds Traded 338 +5
  • European Financial Sector CDS Index 71.3 +.9% 
  • Deutsche Bank Subordinated 5Y Credit Default Swap 224.0 +2.2%
  • Italian/German 10Y Yld Spread 157.0 basis points +1.0 basis point
  • Asia Ex-Japan Investment Grade CDS Index 99.4 -.6%
  • Emerging Market CDS Index 178.35 -.08%
  • Israel Sovereign CDS 125.6 +1.1%
  • China Corp. High-Yield Bond USD ETF(KHYB) 24.5+.02%
  • 2-Year SOFR Swap Spread -14.0 basis points -.25 basis point
  • Treasury Repo 3M T-Bill Spread 7.75 basis points +1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -6.5 -1.25 basis points
  • MBS  5/10 Treasury Spread 150.0 +1.0 basis point
  • Bloomberg CMBS Investment Grade Bbb Average OAS 851.0 -7.0 basis points
  • Avg. Auto ABS OAS 70.0 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 40.5 -.17%
  • 3-Month T-Bill Yield 5.38% +2.0 basis points
  • China Iron Ore Spot 126.7 USD/Metric Tonne +1.3%
  • Dutch TTF Nat Gas(European benchmark) 28.2 euros/megawatt-hour -1.5%
  • Citi US Economic Surprise Index 43.5 +.6 point
  • Citi Eurozone Economic Surprise Index 20.6 -1.9 points
  • Citi Emerging Markets Economic Surprise Index -2.2 -.5 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(285 of 500 reporting) +4.2% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 245.02 +.04:  Growth Rate +10.7% unch., P/E 20.4 +.2
  • S&P 500 Current Year Estimated Profit Margin 11.34% -6.0 basis points
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(7 of 10 reporting) +44.2% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 302.81 +.52: Growth Rate +42.0% +.3 percentage point, P/E 32.0 +.7
  • Bloomberg US Financial Conditions Index 1.02 -1.0 basis point
  • Bloomberg Euro-Zone Financial Conditions Index 1.10 +40.0 basis points
  • US Yield Curve -32.0 basis points (2s/10s) unch.
  • US Atlanta Fed 1Q GDPNow Forecast +3.4% -.8 percentage point
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 61.2% +1.6 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.66% unch.: CPI YoY +2.96% unch.
  • 10-Year TIPS Spread 2.24 unch.
  • Highest target rate probability for May 1st FOMC meeting: 56.7%(+1.3 percentage points) chance of 5.0%-5.25%. Highest target rate probability for June 12th meeting: 52.4%(+1.2 percentage points) chance of 4.75%-5.0%.
Overseas Futures:
  • Nikkei 225 Futures: Indicating +205 open in Japan 
  • China A50 Futures: Indicating -60 open in China
  • DAX Futures: Indicating +121 open in Germany
Portfolio:
  • Higher:  On gains in my tech/consumer discretionary/industrial/utility sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

No comments: