Monday, June 16, 2025

Stocks Higher into Final Hour on Israel/Iran Ceasefire Hopes, Lower Oil Prices, Short-Covering, Tech/Transport Sector Strength

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 37.16 +.38% 
  • US 10-Year T-Note Yield 4.46% +6.0 basis points
  • 3-Month T-Bill Yield 4.35% -1.0 bais point
  • China Iron Ore Spot 93.4 USD/Metric Tonne -.7%
  • Dutch TTF Nat Gas(European benchmark) 37.91 euros/megawatt-hour +.03%
  • Citi US Economic Surprise Index -12.2 -3.8 points
  • Citi Eurozone Economic Surprise Index 25.8 -.6 point
  • Citi Emerging Markets Economic Surprise Index 33.7 +.3 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(499 of 500 reporting) +12.7% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 278.11 +.32:  Growth Rate +9.5% +.2 percentage point, P/E 21.7 unch.
  • S&P 500 Current Year Estimated Profit Margin 13.22% +1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(10 of 10 reporting) +33.0% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 432.40 +.88: Growth Rate +15.8% +.2 percentage point, P/E 33.0 +.1
  • Bloomberg US Financial Conditions Index .28 -12.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.01 -18.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 4.4 -.7
  • US Yield Curve 48.25 basis points (2s/10s) +1.75 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +3.8% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 40.0% -.7 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.58% unch.: CPI YoY +2.61% unch.
  • 1-Year TIPS Spread 2.59 -2.0 basis points
  • 10-Year TIPS Spread 2.31 +1.0 basis point
  • Highest target rate probability for July 30th FOMC meeting:  87.5% (+10.6 percentage points) chance of 4.25%-4.5%. Highest target rate probability for Sept. 17th meeting: 56.5%(-.3 percentage point) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +339 open in Japan 
  • China A50 Futures: Indicating -69 open in China
  • DAX Futures: Indicating -88 open in Germany
Portfolio:
  • Slightly Lower: On losses in my index hedges and emerging market shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges 
  • Market Exposure: Moved to 50% Net Long

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