Stocks Lower into Final Hour on Anti-Trump Senate Majority Leader Thune/Cornyn Possibilities, Surging Long-Term Rates, Diminished China Stimulus Hopes, Biotech/Alt Energy Sector Weakness

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 37.8 -.51%
• 3-Month T-Bill Yield 4.53% +1.0 basis point
  

• China Iron Ore Spot 100.5 USD/Metric Tonne -.02%
• Dutch TTF Nat Gas(European benchmark) 44.3 euros/megawatt-hour +1.2%

• Citi US Economic Surprise Index 38.4 +1.3 points
  

• Citi Eurozone Economic Surprise Index 16.1 -2.6 points

• Citi Emerging Markets Economic Surprise Index -1.5 +.4 point
• S&P 500 Current Quarter EPS Growth Rate YoY(457 of 500 reporting) +7.0% -.1 percentage point
  
• S&P 500 Blended Forward 12 Months Mean EPS Estimate 268.19 +.15:  Growth Rate +14.9% -.2 percentage point, P/E 22.3 -.1
  
• S&P 500 Current Year Estimated Profit Margin 12.53% +1.0 basis point
  
• NYSE FANG+ Current Quarter EPS Growth Rate YoY(7 of 10 reporting) +25.7% unch.
  
• NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 377.22 +.68: Growth Rate +33.0% -1.0 percentage point, P/E 33.0 +.1
  
• Bloomberg US Financial Conditions Index 1.21 +11.0 basis points
  
• Bloomberg Euro-Zone Financial Conditions Index 1.98 +47.0 basis points
  
• US Yield Curve 9.0 basis point (2s/10s) +4.5 basis points
  
• US Atlanta Fed Q4 GDPNow Forecast +2.45% unch.
  
• US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 32.8% -2.7 percentage points
  

• Cleveland Fed Inflation Nowcast Core PCE YoY +2.74% unch.: CPI YoY +2.56% unch.
  
• 10-Year TIPS Spread 2.37 +1.0 basis point
  
• Highest target rate probability for Jan. 29th FOMC meeting: 53.5%(-2.0 percentage points) chance of 4.25%-4.5%. Highest target rate probability for March 19th meeting: 40.5%(+2.3 percentage points) chance of 4.25%-4.5%. (current target rate is 4.5-4.75%)
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -96 open in Japan 
• China A50 Futures: Indicating -116 open in China

• DAX Futures: Indicating +120 open in Germany

Portfolio:

• Slightly Lower:  On losses in my tech/financial/consumer discretionary/industrial/utility sector longs
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some
  

• Market Exposure: 75% Net Long