Thursday, October 03, 2024

Stocks Reversing Lower into Close on Escalating Mid-East Regional War Fears, Port Strike/Supply Chain Disruption Concerns, US Policy-Induced Stagflation Worries, Biotech/Transport Sector Weakness

Economic Gauges:

  • Bloomberg Emerging Markets Currency Index 38.8 -.14%
  • 3-Month T-Bill Yield 4.58% -1.0 basis point
  • China Iron Ore Spot 108.0 USD/Metric Tonne -1.0%
  • Dutch TTF Nat Gas(European benchmark) 39.9 euros/megawatt-hour +3.4%
  • Citi US Economic Surprise Index 7.4 +3.6 points
  • Citi Eurozone Economic Surprise Index -36.1 +9.2 basis points
  • Citi Emerging Markets Economic Surprise Index -3.2 unch.
  • S&P 500 Current Quarter EPS Growth Rate YoY(22 of 500 reporting) +18.4% -.1 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 266.92 +.73:  Growth Rate +14.3% unch., P/E 21.4 -.1
  • S&P 500 Current Year Estimated Profit Margin 12.66% +1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a n/a
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 365.22 +.20: Growth Rate +28.3% +.1 percentage point, P/E 31.1 +.1
  • Bloomberg US Financial Conditions Index .74 +7.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index .75 +3.0 basis points
  • US Yield Curve 13.75 basis point (2s/10s) -1.0 basis point
  • US Atlanta Fed 3Q GDPNow Forecast +2.54% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 59.1 -2.7 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.58% unch.: CPI YoY +2.25% unch.
  • 10-Year TIPS Spread 2.21 -1.0 basis point
  • Highest target rate probability for Dec. 18th FOMC meeting: 45.0%(-3.5 percentage points) chance of 4.0%-4.25%. Highest target rate probability for Jan. 29th meeting: 44.8%(-.9 percentage point) chance of 3.75%-4.0%. (current target rate is 4.75-5.0%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +115 open in Japan 
  • China A50 Futures: Indicating +923 open in China
  • DAX Futures: Indicating +119 open in Germany
Portfolio:
  • Slightly Higher:  On gains in my tech/utility sector longs, index hedges and emerging market shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some
  • Market Exposure: 50% Net Long

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