Tuesday, December 17, 2024

Stocks Lower into Final Hour on US Policy-Induced Stagflation Fears, Profit-Taking, Technical Selling, Financial/Healthcare Sector Weakness

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 37.3 -.20%
  • 3-Month T-Bill Yield 4.31% -2.0 basis points
  • China Iron Ore Spot 103.9 USD/Metric Tonne -.6%
  • Dutch TTF Nat Gas(European benchmark) 42.1 euros/megawatt-hour +4.4%
  • Citi US Economic Surprise Index 9.0 -7.1 points
  • Citi Eurozone Economic Surprise Index -9.9 -1.8 points
  • Citi Emerging Markets Economic Surprise Index -2.9 +1.1 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(4 of 500 reporting) +9.7% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 271.24 -.04:  Growth Rate +13.6% -.1 percentage point, P/E 22.3 -.1
  • S&P 500 Current Year Estimated Profit Margin 12.55% -1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 386.10 +.07: Growth Rate +23.1% unch., P/E 35.4 -.1
  • Bloomberg US Financial Conditions Index .87 -3.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index .97 -1.0 basis point
  • US Yield Curve 14.5 basis points (2s/10s) -.25 basis point
  • US Atlanta Fed Q4 GDPNow Forecast +3.33% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 26.5% -.4 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.97% unch.: CPI YoY +2.86% unch.
  • 10-Year TIPS Spread 2.31 -2.0 basis points
  • Highest target rate probability for Jan. 29th FOMC meeting: 79.9%(-3.9 percentage points) chance of 4.25%-4.5%. Highest target rate probability for March 19th meeting: 49.4%(-2.6 percentage points) chance of 4.0%-4.25%. (current target rate is 4.5-4.75%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +51 open in Japan 
  • China A50 Futures: Indicating +40 open in China
  • DAX Futures: Indicating +12 open in Germany
Portfolio:
  • Lower:  On losses in my tech/industrial/financial/consumer discretionary/utility sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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