Thursday, July 24, 2025

Stocks Modestly Higher into Final Hour on US-Global Trade Deal Optimism, Trump Admin AI/Grid Focus, Earnings Outlook Boosts, Tech/Energy Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 15.0 -2.0%
  • S&P 500 Intraday % Swing .30 -56.3%
  • Bloomberg Global Risk On/Risk Off Index 82.6 +4.6% 
  • Swiss Franc/Offshore Chinese Renminbi Cross 9.0 -.23%
  • Euro/Yen Carry Return Index 194.74 +.23%
  • Emerging Markets Currency Volatility(VXY) 7.52 +.27%
  • CBOE S&P 500 Implied Correlation Index 18.7 -1.8% 
  • ISE Sentiment Index 193.0 +7.0
  • Total Put/Call .85 +6.3%
  • NYSE Arms 1.07 +40.8%
  • NYSE Non-Block Money Flow -$145.6M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 50.2 +.2%
  • US Energy High-Yield OAS 369.8 -1.3%
  • Bloomberg TRACE # Distressed Bonds Traded 197.0 -4.0
  • European Financial Sector CDS Index 56.4 -.7%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 122.4 -2.6%
  • Italian/German 10Y Yld Spread 85.0 +3.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 69.0 -.7%
  • Emerging Market CDS Index 151.2 +.2%
  • Israel Sovereign CDS 77.1 +.3%
  • China Corp. High-Yield Bond USD ETF(KHYB) 24.2 +.06%
  • 2-Year SOFR Swap Spread -25.0 basis points unch.
  • 3M T-Bill Treasury Repo Spread 8.0 basis point +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap 1.5 unch.
  • MBS  5/10 Treasury Spread 148.0 -1.0 basis point
  • Bloomberg CMBS Investment Grade Bbb Average OAS 591.0 +1.0 basis point
  • Avg. Auto ABS OAS 53.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.8 -.11%
  • US 10-Year T-Note Yield 4.41% +2.0 basis points
  • 3-Month T-Bill Yield 4.35% +1.0 basis point
  • China Iron Ore Spot 103.3 USD/Metric Tonne -1.8%
  • Dutch TTF Nat Gas(European benchmark) 32.4 euros/megawatt-hour -1.0%
  • Citi US Economic Surprise Index 2.4 -2.3 points
  • Citi Eurozone Economic Surprise Index 33.5 +2.0 points
  • Citi Emerging Markets Economic Surprise Index 16.1 -.6 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(153 of 500 reporting) +9.0% +.1 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 283.02 -.09:  Growth Rate +10.8% unch., P/E 22.5 +.1
  • S&P 500 Current Year Estimated Profit Margin 13.42% +1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(3 of 10 reporting) +22.4% -23.1 percentage points
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 452.85 +.39: Growth Rate +20.0% +.1 percentage point, P/E 33.3 +.4
  • Bloomberg US Financial Conditions Index .62 +9.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.46 +5.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 6.5 -.4
  • US Yield Curve 48.75 basis points (2s/10s) -1.25 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +2.4% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 42.2% -2.1 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.66% unch.: CPI YoY +2.73% unch.
  • 1-Year TIPS Spread 2.73 -4.0 basis points
  • 10-Year TIPS Spread 2.42 +3.0 basis points
  • Highest target rate probability for Sept. 17th FOMC meeting: 60.5% (+.6 percentage point) chance of 4.0%-4.25%. Highest target rate probability for Oct. 29th meeting: 50.4%(+1.5 percentage points) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Polymarket:
  • Which Countries Will the US Agree to Tariff Agreements with Before August? 
  • EU 64.0% +7.0 percentage points.
  • India 36.0% +15.0 percentage points.
  • South Korea  57.0% -4.0 percentage points.
  • Mexico 32.0% +11.0 percentage points. 
Overseas Futures:
  • Nikkei 225 Futures: Indicating -56 open in Japan 
  • China A50 Futures: Indicating -30 open in China
  • DAX Futures: Indicating +83 open in Germany
Portfolio:
  • Higher: On gains in my tech/utility/industrial/financial sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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