Friday, August 15, 2025

Stocks Slightly Lower into Afternoon on Rising Long-Term Rates, Earnings Outlook Jitters, Profit-Taking, Financial/Utility Sector Weakness

Economic Gauges:

  • Bloomberg Emerging Markets Currency Index 36.6 +.06%
  • US 10-Year T-Note Yield 4.33% +4.0 basis points
  • 3-Month T-Bill Yield 4.21% -1.0 basis point
  • China Iron Ore Spot 102.8 USD/Metric Tonne +.8%
  • Dutch TTF Nat Gas(European benchmark) 31.0 euros/megawatt-hour -3.5%
  • Citi US Economic Surprise Index 6.9 -1.1 points
  • Citi Eurozone Economic Surprise Index 22.2 -.1 point
  • Citi Emerging Markets Economic Surprise Index 1.5 -6.4 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(459 of 500 reporting) +11.3% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 287.58 +.18:  Growth Rate +12.6% +.1 percentage point, P/E 22.4 -.1
  • S&P 500 Current Year Estimated Profit Margin 13.43% -1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(7 of 10 reporting) +23.6% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 469.52 +.18: Growth Rate +24.5% +.1 percentage point, P/E 32.9 unch.
  • Bloomberg US Financial Conditions Index .67 +1.0 basis point
  • Bloomberg Euro-Zone Financial Conditions Index 1.44 -12.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 5.3 unch.
  • US Yield Curve 57.25 basis points (2s/10s) +2.0 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +2.5% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 42.9% -1.7 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.89% unch.: CPI YoY +2.84% unch.
  • 1-Year TIPS Spread 2.65 -4.0 basis points
  • 10-Year TIPS Spread 2.38 -2.0 basis points
  • Highest target rate probability for Oct. 29th FOMC meeting: 48.3% (-6.9 percentage points) chance of 3.75%-4.0%. Highest target rate probability for Dec. 10th meeting: 46.5%(+1.5 percentage points) chance of 3.75%-4.0%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +117 open in Japan 
  • China A50 Futures: Indicating +5 open in China
  • DAX Futures: Indicating +60 open in Germany
Portfolio:
  • Slightly Higher: On gains in my consumer discretionary/industrial/tech sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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