Wednesday, April 30, 2025

Stocks Lower into Final Hour on US Economic Data, Earnings Outlook Jitters, Technical Selling, Energy/Alt Energy Sector Weakness

Broad Equity Market Tone:

  • Advance/Decline Line: Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 25.2 +4.4%
  • S&P 500 Intraday % Swing 1.58 +31.2%
  • Bloomberg Global Risk On/Risk Off Index 56.6 -4.9% 
  • Swiss Franc/Offshore Chinese Renminbi Cross 8.83 +.03%
  • Euro/Yen Carry Return Index 182.1 +.10%
  • Emerging Markets Currency Volatility(VXY) 8.6 unch.
  • CBOE S&P 500 Implied Correlation Index 35.6 +5.8% 
  • ISE Sentiment Index 101.0 -22.0
  • Total Put/Call .83 -4.6%
  • NYSE Arms 1.24 -15.1%
  • NYSE Non-Block Money Flow -$143.6M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 68.1 +1.7%
  • US Energy High-Yield OAS 491.9 +5.5%
  • Bloomberg TRACE # Distressed Bonds Traded 279.0 +4.0
  • European Financial Sector CDS Index 73.2 +2.9%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 165.2 +3.3%
  • Italian/German 10Y Yld Spread 113.0 basis points +2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 97.1 +2.8%
  • Emerging Market CDS Index 198.4 +1.9%
  • Israel Sovereign CDS 105.9 +3.4%
  • China Corp. High-Yield Bond USD ETF(KHYB) 23.6 -.34%
  • 2-Year SOFR Swap Spread -24.0 basis points unch.
  • 3M T-Bill Treasury Repo Spread -6.0 basis point +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -1.5 +.25 basis point
  • MBS  5/10 Treasury Spread 160.0 +2.0 basis points
  • Bloomberg CMBS Investment Grade Bbb Average OAS 642.0 +3.0 basis points
  • Avg. Auto ABS OAS 77.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.97 -.07% 
  • US 10-Year T-Note Yield 4.18% +1.0 basis point
  • 3-Month T-Bill Yield 4.29% +1.0 basis point
  • China Iron Ore Spot 96.6 USD/Metric Tonne -.83%
  • Dutch TTF Nat Gas(European benchmark) 32.3 euros/megawatt-hour +1.1%
  • Citi US Economic Surprise Index -8.6 -2.4 points
  • Citi Eurozone Economic Surprise Index -15.7 +3.6 points
  • Citi Emerging Markets Economic Surprise Index 18.8 +5.3 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(254 of 500 reporting) +13.6% -1.5 percentage points
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 275.57 -.10:  Growth Rate +12.1% -.1 percentage point, P/E 20.0 -.1
  • S&P 500 Current Year Estimated Profit Margin 13.40% -1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(3 of 10 reporting) +43.2% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 421.62 +.23: Growth Rate +21.9% unch., P/E 29.0 -.2
  • Bloomberg US Financial Conditions Index -.19 +5.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.02 +4.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 10.8 +.1
  • US Yield Curve 55.75 basis points (2s/10s) +4.25 basis points
  • US Atlanta Fed GDPNow Q2 Forecast -2.4% +30.0 basis points
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 47.5% +1.7 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.61% +7.0 basis points: CPI YoY +2.34% -1.0 basis point
  • 1-Year TIPS Spread 3.13 -8.0 basis points
  • 10-Year TIPS Spread 2.24 +1.0 basis point
  • Highest target rate probability for June 18th FOMC meeting: 63.7% (+3.9 percentage points) chance of 4.0%-4.25%. Highest target rate probability for July 30th meeting: 59.4%(+6.6 percentage points) chance of 3.75%-4.0%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +105 open in Japan 
  • China A50 Futures: Indicating -28 open in China
  • DAX Futures: Indicating +230 open in Germany
Portfolio:
  • Slightly Lower: On losses in my utility/tech/consumer discretionary sector longs
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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