Wednesday, December 11, 2024

Stocks Rising into Final Hour on Earnings Outlook Optimism, Fed Rate-Cut Hopes, Technical Buying, Tech/Airline Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Higher
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 13.7 -3.5%
  • DJIA Intraday % Swing .50 unch.
  • Bloomberg Global Risk On/Risk Off Index 66.9 +.3%
  • Euro/Yen Carry Return Index 178.1 +.07%
  • Emerging Markets Currency Volatility(VXY) 8.7 -.2%
  • CBOE S&P 500 Implied Correlation Index 10.9 -7.0% 
  • ISE Sentiment Index 185.0 -8.0 points
  • Total Put/Call .77 -8.3%
  • NYSE Arms 1.56 +38.0%
  • NYSE Non-Block Money Flow +$117.2M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 46.8 -1.25%
  • US Energy High-Yield OAS 300.9 -.98%
  • Bloomberg TRACE # Distressed Bonds Traded 186 unch.
  • European Financial Sector CDS Index 59.1 -1.1%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 148.7 -.6%
  • Italian/German 10Y Yld Spread 106.0 basis points -3.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 69.7 +1.7%
  • Emerging Market CDS Index 152.1 -1.5%
  • Israel Sovereign CDS 103.8 +1.0%
  • China Corp. High-Yield Bond USD ETF(KHYB) 24.9 +.16%
  • 2-Year SOFR Swap Spread -18.75 basis points unch.
  • 3M T-Bill Treasury Repo Spread -25.0 basis points -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -3.25 +.5 basis point
  • MBS  5/10 Treasury Spread 130.0 unch.
  • Bloomberg CMBS Investment Grade Bbb Average OAS 644.0 -6.0 basis points
  • Avg. Auto ABS OAS 45.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 37.5 -.07%
  • 3-Month T-Bill Yield 4.36% unch.
  • China Iron Ore Spot 105.3 USD/Metric Tonne +.6%
  • Dutch TTF Nat Gas(European benchmark) 44.7 euros/megawatt-hour -1.9%
  • Citi US Economic Surprise Index 25.7 -.6 point
  • Citi Eurozone Economic Surprise Index -25.9 +.6 point
  • Citi Emerging Markets Economic Surprise Index -1.1 +.9
  • S&P 500 Current Quarter EPS Growth Rate YoY(2 of 500 reporting) +8.9% +.7 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 270.84 +.11:  Growth Rate +13.5% unch., P/E 22.5 +.1
  • S&P 500 Current Year Estimated Profit Margin 12.58% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 384.86 +.54: Growth Rate +22.7% unch., P/E 34.7 +.8
  • Bloomberg US Financial Conditions Index .86 -4.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.42 -9.0 basis points
  • US Yield Curve 10.75 basis points (2s/10s) +4.0 basis points
  • US Atlanta Fed Q4 GDPNow Forecast +3.33% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 31.6% -2.3 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.97% +3.0 basis points: CPI YoY +2.86% +16.0 basis points
  • 10-Year TIPS Spread 2.31 +4.0 basis points
  • Highest target rate probability for Jan. 29th FOMC meeting: 75.7%(+3.4 percentage points) chance of 4.25%-4.5%. Highest target rate probability for March 19th meeting: 54.7%(+.5 percentage point) chance of 4.0%-4.25%. (current target rate is 4.5-4.75%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +853 open in Japan 
  • China A50 Futures: Indicating -26 open in China
  • DAX Futures: Indicating +53 open in Germany
Portfolio:
  • Higher:  On gains in my financial/tech/industrial/consumer discretionary sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

No comments: