Monday, June 30, 2025

Stocks Rising into Final Hour on US-Global Trade Deal Optimism, Lower Long-Term Rates, Short-Covering, Tech/Financial Sector Strength

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 37.2 +.3%
  • US 10-Year T-Note Yield 4.23% -5.0 basis points
  • 3-Month T-Bill Yield 4.27% -3.0 basis points
  • China Iron Ore Spot 94.2 USD/Metric Tonne -.11%
  • Dutch TTF Nat Gas(European benchmark) 32.9 euros/megawatt-hour -2.3%
  • Citi US Economic Surprise Index -11.4 -1.1 points
  • Citi Eurozone Economic Surprise Index 27.3 +.6 point
  • Citi Emerging Markets Economic Surprise Index 26.6 -4.5 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(17 of 500 reporting) +2.2% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 280.44 +.27:  Growth Rate +10.3% +.1 percentage point, P/E 22.1 unch.
  • S&P 500 Current Year Estimated Profit Margin 13.41% +14.0 basis points
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 445.85 +.77: Growth Rate +19.4% +.2 percentage point, P/E 33.6 +.2
  • Bloomberg US Financial Conditions Index .49 +4.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index .96 -41.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 4.3 unch.
  • US Yield Curve 50.75 basis points (2s/10s) -3.5 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +2.9% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 46.7% +2.4 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.68% unch.: CPI YoY +2.64% unch.
  • 1-Year TIPS Spread 2.55 unch.
  • 10-Year TIPS Spread 2.30 -1.0 basis point
  • Highest target rate probability for Sept. 17th FOMC meeting: 75.0% (+.2 percentage point) chance of 4.0%-4.25%. Highest target rate probability for Oct. 29th meeting: 59.9%(+2.2 percentage points) chance of 3.75%-4.0%. (current target rate is 4.25-4.5%)
Polymarket:
  • US-EU Trade Agreement by July 9th 54.0% unch. 
  • Reconciliation Bill Passed by July 4th 60.0% -15.0 percentage points
Overseas Futures:
  • Nikkei 225 Futures: Indicating -97 open in Japan 
  • China A50 Futures: Indicating -137 open in China
  • DAX Futures: Indicating +163 open in Germany
Portfolio:
  • Higher: On gains in my industrial/financial/tech sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

No comments: