Thursday, February 20, 2025

Stocks Lower into Final Hour on Earnings Outlook Jitters, Tariff Concerns, Yen Strength, Consumer Discretionary/Financial Sector Weakness

Economic Gauges:

  • Bloomberg Emerging Markets Currency Index 37.4 +.4%
  • 3-Month T-Bill Yield 4.31% -1.0 basis point
  • China Iron Ore Spot 108.8 USD/Metric Tonne +.06%
  • Dutch TTF Nat Gas(European benchmark) 47.5 euros/megawatt-hour -1.6%
  • Citi US Economic Surprise Index -.2 -.7 point
  • Citi Eurozone Economic Surprise Index 31.4 +.6 point
  • Citi Emerging Markets Economic Surprise Index 2.3 -.7 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(420 of 500 reporting) +10.5% -.1 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 275.24 +.10:  Growth Rate +16.1% unch., P/E 22.2 -.1
  • S&P 500 Current Year Estimated Profit Margin 11.88% +1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(7 of 10 reporting) +26.6% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 406.23 +.30: Growth Rate +31.4% +.1 percentage point, P/E 33.8 -.4
  • Bloomberg US Financial Conditions Index .85 -1.0 basis point
  • Bloomberg Euro-Zone Financial Conditions Index 1.52 -13.0 basis points
  • US Yield Curve 23.5 basis points (2s/10s) -2.5 basis points
  • US Atlanta Fed GDPNow Q1 Forecast +2.34% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 24.6% +.7 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.66% unch.: CPI YoY +2.82% unch.
  • 10-Year TIPS Spread 2.46 unch.
  • Highest target rate probability for May 7th FOMC meeting: 77.6% (-9.3 percentage points) chance of 4.25%-4.5%. Highest target rate probability for June 18th meeting: 53.4%(-5.7 percentage points) chance of 4.25%-4.5%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -98 open in Japan 
  • China A50 Futures: Indicating +45 open in China
  • DAX Futures: Indicating +83 open in Germany
Portfolio:
  • Slightly Lower: On losses in my tech/financial/industrial/consumer discretionary sector longs 
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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