Thursday, January 02, 2025

Stocks Reversing Modestly Lower into Final Hour on Escalating US Domestic Terrorism Fears, Diminishing China Stimulus Optimism, US Dollar Strength, Homebuilding/Regional Bank Sector Weakness

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.6 -.14%
  • 3-Month T-Bill Yield 4.31% unch.
  • China Iron Ore Spot 100.5 USD/Metric Tonne -.4%
  • Dutch TTF Nat Gas(European benchmark) 50.3 euros/megawatt-hour +2.8%
  • Citi US Economic Surprise Index 2.2 +3.9 points
  • Citi Eurozone Economic Surprise Index -12.6 -.5 point
  • Citi Emerging Markets Economic Surprise Index -1.5 +1.7 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(19 of 500 reporting) +21.2% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 272.16 +.17:  Growth Rate +14.0% unch., P/E 21.7 unch.
  • S&P 500 Current Year Estimated Profit Margin 12.57% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 393.27 +.35: Growth Rate +25.4% +.1 percentage point, P/E 33.7 unch.
  • Bloomberg US Financial Conditions Index .68 +12.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 2.36 +83.0 basis points
  • US Yield Curve 32.5 basis points (2s/10s) +3.5 basis points
  • US Atlanta Fed Q4 GDPNow Forecast +2.59% -50.0 basis points
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 25.8% +.4 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.87% unch.: CPI YoY +2.86% unch.
  • 10-Year TIPS Spread 2.35 +1.0 basis point
  • Highest target rate probability for March 19th FOMC meeting: 49.7% (+2.7 percentage points) chance of 4.25%-4.5%. Highest target rate probability for May 7th meeting: 46.3%(-1.8 percentage points) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -404 open in Japan 
  • China A50 Futures: Indicating -47 open in China
  • DAX Futures: Indicating +55 open in Germany
Portfolio:
  • Higher:  On gains in my tech/utility/financial sector longs, index hedges and emerging market shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some
  • Market Exposure: 50% Net Long

No comments: