Wednesday, July 23, 2025

Stocks Surging into Final Hour on US-Global Trade Deal Optimism, Trump Admin AI/Grid Focus, Short-Covering, Tech/Pharma Sector Strength

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.9 +.14%
  • US 10-Year T-Note Yield 4.39% +4.0 basis points
  • 3-Month T-Bill Yield 4.34% +4.0 basis points
  • China Iron Ore Spot 104.6 USD/Metric Tonne +.08%
  • Dutch TTF Nat Gas(European benchmark) 32.7 euros/megawatt-hour -1.3%
  • Citi US Economic Surprise Index 4.7 unch.
  • Citi Eurozone Economic Surprise Index 31.5 -.2 point
  • Citi Emerging Markets Economic Surprise Index 16.7 -2.3 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(116 of 500 reporting) +8.9% +1.5 percentage points
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 283.11 +.20:  Growth Rate +10.8% +.1 percentage point, P/E 22.4 +.1
  • S&P 500 Current Year Estimated Profit Margin 13.41% -1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(1 of 10 reporting) +45.5% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 452.46 +.50: Growth Rate +19.9% +.1 percentage point, P/E 32.9 -.2
  • Bloomberg US Financial Conditions Index .53 -1.0 basis point
  • Bloomberg Euro-Zone Financial Conditions Index 1.41 -3.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 6.9 -.4
  • US Yield Curve 50.0 basis points (2s/10s) -.75 basis point
  • US Atlanta Fed GDPNow Q2 Forecast +2.4% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 44.3% +1.4 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.66% unch.: CPI YoY +2.73% unch.
  • 1-Year TIPS Spread 2.77 -8.0 basis points
  • 10-Year TIPS Spread 2.39 -1.0 basis point
  • Highest target rate probability for Sept. 17th FOMC meeting: 57.9% (-.1 percentage point) chance of 4.0%-4.25%. Highest target rate probability for Oct. 29th meeting: 48.4%(-.1 percentage point) 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 54.0% +16.0 percentage points.
  • India 16.0% +7.0 percentage points.
  • South Korea  65.0% +14.0 percentage points.
  • Canada 26.0% +2.0 percentage points. 
Overseas Futures:
  • Nikkei 225 Futures: Indicating +544 open in Japan 
  • China A50 Futures: Indicating +25 open in China
  • DAX Futures: Indicating +370 open in Germany
Portfolio:
  • Higher: On gains in my tech/utility/consumer discretionary/industrial/financial sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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