Tuesday, April 15, 2025

Stocks Reversing Slightly Lower into Final Hour on Global Growth Worries, China's Trade War Escalation, Technical Selling, Consumer Discretionary/Alt Energy Sector Weakness

Broad Equity Market Tone:

  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 30.0 -2.6%
  • S&P 500 Intraday % Swing .9 -52.2%
  • Bloomberg Global Risk On/Risk Off Index 56.1 +.2% 
  • Swiss Franc/Offshore Chinese Renminbi Cross 8.91 -.67%
  • Euro/Yen Carry Return Index 180.9 -.6%
  • Emerging Markets Currency Volatility(VXY) 9.23 -4.0%
  • CBOE S&P 500 Implied Correlation Index 39.7 +4.0% 
  • ISE Sentiment Index 120.0 -2.0 points
  • Total Put/Call 1.04 +3.0%
  • NYSE Arms 1.40 +22.8%
  • NYSE Non-Block Money Flow -$208.1M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 69.98 -1.4%
  • US Energy High-Yield OAS 520.7 +.4%
  • Bloomberg TRACE # Distressed Bonds Traded 300.0 -5.0
  • European Financial Sector CDS Index 77.4 -2.5%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 185.3 -2.5%
  • Italian/German 10Y Yld Spread 118.0 basis points +1.0 basis point
  • Asia Ex-Japan Investment Grade CDS Index 103.61 -3.75%
  • Emerging Market CDS Index 207.1 -.7%
  • Israel Sovereign CDS 112.5 -3.9%
  • China Corp. High-Yield Bond USD ETF(KHYB) 23.48 +.48%
  • 2-Year SOFR Swap Spread -23.5 basis points +1.5 basis points
  • 3M T-Bill Treasury Repo Spread -4.0 basis points +4.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -1.0 +2.5 basis points
  • MBS  5/10 Treasury Spread 156.0 -2.0 basis points
  • Bloomberg CMBS Investment Grade Bbb Average OAS 647.0 +3.0 basis points
  • Avg. Auto ABS OAS 71.0 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.7 -.27% 
  • US 10-Year T-Note Yield 4.32% -6.0 basis points
  • 3-Month T-Bill Yield 4.29% -1.0 basis point
  • China Iron Ore Spot 98.4 USD/Metric Tonne -.4%
  • Dutch TTF Nat Gas(European benchmark) 34.4 euros/megawatt-hour -.3%
  • Citi US Economic Surprise Index -18.8 -.5 point
  • Citi Eurozone Economic Surprise Index 1.9 -6.8 points
  • Citi Emerging Markets Economic Surprise Index 8.8 -.4 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(34 of 500 reporting) +6.6% -.8 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 277.04 -.30:  Growth Rate +12.8% -.1 percentage point, P/E 19.6 +.2
  • S&P 500 Current Year Estimated Profit Margin 13.48% -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 418.21 unch.: Growth Rate +20.9% unch., P/E 28.0 +.5
  • Bloomberg US Financial Conditions Index -.52 +29.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index .73 +31.0 basis points
  • US Yield Curve 49.25 basis points (2s/10s) -3.0 basis points
  • US Atlanta Fed GDPNow Q1 Forecast -2.4% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 38.0% unch.
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.54% unch.: CPI YoY +2.42% unch.
  • 10-Year TIPS Spread 2.20 -4.0 basis points
  • Highest target rate probability for June 18th FOMC meeting: 60.0% (-1.5 percentage points) chance of 4.0%-4.25%. Highest target rate probability for July 30th meeting: 47.0%(-2.4 percentage points) chance of 3.75%-4.0%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +418 open in Japan 
  • China A50 Futures: Indicating -74 open in China
  • DAX Futures: Indicating +177 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/utility sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some
  • Market Exposure: 50% net long

No comments: