Monday, April 29, 2024

Stocks Slightly Higher into Close on Lower Long-Term Rates, Earnings Outlook Optimism, Technical Buying, Biotech/Alt Energy Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.9 -1.3%
  • DJIA Intraday % Swing .29 -59.1%
  • Bloomberg Global Risk On/Risk Off Index 67.6 -1.9%
  • Euro/Yen Carry Return Index 182.2 -1.2%
  • Emerging Markets Currency Volatility(VXY) 7.0 unch.
  • CBOE S&P 500 Implied Correlation Index 17.0 -5.5% 
  • ISE Sentiment Index 131.0 +5.0
  • Total Put/Call .88 -12.0%
  • NYSE Arms 1.30 +1.6%
  • NYSE Non-Block Money Flow +$150.9M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 52.1 +.07%
  • US Energy High-Yield OAS 255.4 -.81%
  • Bloomberg TRACE # Distressed Bonds Traded 282 +7
  • European Financial Sector CDS Index 62.6 -.8%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 188.0 -.1%
  • Italian/German 10Y Yld Spread 132.0 basis points -4.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 113.5 -2.1%
  • Emerging Market CDS Index 172.2 -1.3%
  • Israel Sovereign CDS 135.4 +.5%
  • China Corp. High-Yield Bond USD ETF(KHYB) 24.4 +.12%
  • 2-Year SOFR Swap Spread -7.75 basis points +2.0 basis points
  • Treasury Repo 3M T-Bill Spread 8.5 basis points -1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -4.25 +.25 basis point
  • MBS  5/10 Treasury Spread 148.0 -2.0 basis points
  • Bloomberg CMBS Investment Grade Bbb Average OAS 770.0 -2.0 basis points
  • Avg. Auto ABS OAS 58.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 39.4 +.08%
  • 3-Month T-Bill Yield 5.39% -2.0 basis points
  • China Iron Ore Spot 117.6 USD/Metric Tonne +.34%
  • Dutch TTF Nat Gas(European benchmark) 28.0 euros/megawatt-hour -3.1%
  • Citi US Economic Surprise Index 14.0 +.8 point
  • Citi Eurozone Economic Surprise Index 15.5 -16.1 points
  • Citi Emerging Markets Economic Surprise Index 41.6 +2.6 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(232 of 500 reporting) +3.4% +1.9 percentage points
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 253.70 +.88:  Growth Rate +13.7% +.4 percentage point, P/E 20.2 +.3
  • S&P 500 Current Year Estimated Profit Margin 12.87% +3.0 basis points
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(5 of 10 reporting) +42.4% -20.1 percentage points
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 318.91 +3.30: Growth Rate +32.7% +1.3 percentage points, P/E 31.2 +1.1
  • Bloomberg US Financial Conditions Index 1.04 +1.0 basis point
  • Bloomberg Euro-Zone Financial Conditions Index .85 +6.0 basis points
  • US Yield Curve -35.25 basis points (2s/10s) -5.75 basis points
  • US Atlanta Fed 2Q GDPNow Forecast +3.9% +120.0 basis points
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 40.6% -1.6 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.74% unch.: CPI YoY +3.49% unch.
  • 10-Year TIPS Spread 2.41 -2.0 basis points
  • Highest target rate probability for June 12th FOMC meeting: 88.4%(-.5 percentage point) chance of 5.25%-5.5%. Highest target rate probability for July 31st meeting: 70.1%(+1.4 percentage points) chance of 5.25%-5.5%.
Overseas Futures:
  • Nikkei 225 Futures: Indicating +335 open in Japan 
  • China A50 Futures: Indicating +58 open in China
  • DAX Futures: Indicating +170 open in Germany
Portfolio:
  • Slightly Higher:  On gains in my tech/industrial sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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