Wednesday, April 03, 2024

Stocks Higher into Final Hour on US Economic Data, Stable Long-Term Rates, Short-Covering, Commodity/Technology Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 14.3 -2.3%
  • DJIA Intraday % Swing .45 -10.6%
  • Bloomberg Global Risk On/Risk Off Index 68.3 +.9%
  • Euro/Yen Carry Return Index 178.4 +.7%
  • Emerging Markets Currency Volatility(VXY) 6.6 +.6%
  • CBOE S&P 500 Implied Correlation Index 14.8 -4.0% 
  • ISE Sentiment Index 157.0 +8.0
  • Total Put/Call .93 -1.1%
  • NYSE Arms .95 +14.5%
  • NYSE Non-Block Money Flow -$82.7M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 51.9 -1.5%
  • US Energy High-Yield OAS 280.80 -.93%
  • Bloomberg TRACE # Distressed Bonds Traded 280 +20
  • European Financial Sector CDS Index 64.0 -.3%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 186.4 unch.
  • Italian/German 10Y Yld Spread 146.0 basis points +2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 103.4 +.2%
  • Emerging Market CDS Index 168.9 -1.3%
  • Israel Sovereign CDS 117.6 +.09%
  • China Corp. High-Yield Bond USD ETF(KHYB) 24.7 +.27%
  • 2-Year SOFR Swap Spread -8.75 basis points +.25 basis point
  • Treasury Repo 3M T-Bill Spread 3.5 basis points +1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -3.5 +.25 basis point
  • MBS  5/10 Treasury Spread 140.0 +1.0 basis point
  • Bloomberg CMBS Investment Grade Bbb Average OAS 782.0 -2.0 basis points
  • Avg. Auto ABS OAS 60.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 39.9 +.4%
  • 3-Month T-Bill Yield 5.37% +1.0 basis point
  • China Iron Ore Spot 98.3 USD/Metric Tonne -1.3%
  • Dutch TTF Nat Gas(European benchmark) 25.6 euros/megawatt-hour -2.4%
  • Citi US Economic Surprise Index 38.6 -2.4 points
  • Citi Eurozone Economic Surprise Index 34.1 -6.2 points
  • Citi Emerging Markets Economic Surprise Index 21.3 -1.5 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(17 of 500 reporting) +42.1% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 250.85 +.20:  Growth Rate +12.4% +.1 percentage point, P/E 20.8 +.1
  • S&P 500 Current Year Estimated Profit Margin 12.86% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) +n/a
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 311.92 -.49: Growth Rate +29.8% -.2 percentage point, P/E 32.1 +.4
  • Bloomberg US Financial Conditions Index 1.05 -7.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index .99 -72.0 basis points
  • US Yield Curve -32.5 basis points (2s/10s) +1.5 basis points
  • US Atlanta Fed 1Q GDPNow Forecast +2.8% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 51.3% -.1 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.67% unch.: CPI YoY +3.41% unch.
  • 10-Year TIPS Spread 2.36 -1.0 basis point
  • Highest target rate probability for June 12th FOMC meeting: 61.7%(+.2 percentage point) chance of 5.0%-5.25%. Highest target rate probability for July 31st meeting: 52.2%(-.5 percentage point) chance of 5.0%-5.25%.
Overseas Futures:
  • Nikkei 225 Futures: Indicating +670 open in Japan 
  • China A50 Futures: Indicating +39 open in China
  • DAX Futures: Indicating +260 open in Germany
Portfolio:
  • Higher:  On gains in my consumer discretionary/financial/tech/industrial sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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