Thursday, November 14, 2024

Stocks Close Lower on Powell's Post-Election Hawkishness, Tamped Down Government Spending Worries, Profit-Taking, Healthcare/Defense Sector Weakness

Economic Gauges:

  • Bloomberg Emerging Markets Currency Index 37.7 -.06%
  • 3-Month T-Bill Yield 4.51% +1.0 basis point
  • China Iron Ore Spot 98.3 USD/Metric Tonne -.02%
  • Dutch TTF Nat Gas(European benchmark) 46.2 euros/megawatt-hour +5.9%
  • Citi US Economic Surprise Index 38.7 +.4 point
  • Citi Eurozone Economic Surprise Index 14.4 -1.7 points
  • Citi Emerging Markets Economic Surprise Index -1.0 +.4 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(461 of 500 reporting) +6.8% -.1 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 268.37 +.04:  Growth Rate +15.2% +1.2 percentage points, P/E 22.2 -.2
  • S&P 500 Current Year Estimated Profit Margin 12.60% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(7 of 10 reporting) +25.7% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 377.73 +.24: Growth Rate +33.2% +.6 percentage point, P/E 33.1 -.2
  • Bloomberg US Financial Conditions Index 1.14 -3.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.47 +7.0 basis points
  • US Yield Curve 7.75 basis point (2s/10s) -9.0 basis points
  • US Atlanta Fed Q4 GDPNow Forecast +2.45% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 32.4% +.7 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.76% +2.0 basis points: CPI YoY +2.71% +15.0 basis points.
  • 10-Year TIPS Spread 2.34 -3.0 basis points
  • Highest target rate probability for Jan. 29th FOMC meeting: 54.0%(-7.7 percentage points) chance of 4.25%-4.5%. Highest target rate probability for March 19th meeting: 40.8%(+9.0 percentage points) chance of 4.25%-4.5%. (current target rate is 4.5-4.75%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +425 open in Japan 
  • China A50 Futures: Indicating -77 open in China
  • DAX Futures: Indicating +53 open in Germany
Portfolio:
  • Slightly Lower:  On losses in my industrial/utility sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  • Market Exposure: Moved to 25% Net Long

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