Wednesday, October 22, 2025

Stocks Lower into Final Hour on Earnings Outlook Jitters, Escalating Russia-Ukraine War Angst, Momo Stock Profit-Taking, Alt Energy/Tech Sector Weakness

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.2 -.04%
  • US 10-Year T-Note Yield 3.95% -1.0 basis point
  • 3-Month T-Bill Yield 3.87% unch.
  • China Iron Ore Spot 103.9 USD/Metric Tonne -.3%
  • Dutch TTF Nat Gas(European benchmark) 31.8 euros/megawatt-hour -1.3%
  • Citi US Economic Surprise Index 10.9 -.2 point
  • Citi Eurozone Economic Surprise Index -4.4 -.3 point
  • Citi Emerging Markets Economic Surprise Index 10.2 -.4 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(99 of 500 reporting) +14.2% +1.3 percentage points
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 296.56 +.09:  Growth Rate +13.3% +.1 percentage point, P/E 22.6 -.2
  • S&P 500 Current Year Estimated Profit Margin 13.50% +2.0 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 482.78 +.60: Growth Rate +18.8% +.1 percentage point, P/E 33.6 -.5
  • Bloomberg US Financial Conditions Index .55 +1.0 basis point
  • Bloomberg Euro-Zone Financial Conditions Index 1.20 -8.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 3.5 -.4 point
  • US Yield Curve 50.75 basis points (2s/10s) +.25 basis point
  • US Atlanta Fed GDPNow Q2 Forecast +3.9% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 39.8% unch.
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.87% unch.: CPI YoY +2.99% unch.
  • 1-Year TIPS Spread 2.61 +3.0 basis points
  • 10-Year TIPS Spread 2.29 +1.0 basis point
  • Highest target rate probability for Dec. 10th FOMC meeting: 97.1% (-1.0 percentage point) chance of 3.5%-3.75%. Highest target rate probability for Jan. 28th meeting: 58.1%(-.7 percentage point) chance of 3.25%-3.5%. (current target rate is 4.0-4.25%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -480 open in Japan 
  • China A50 Futures: Indicating -81 open in China
  • DAX Futures: Indicating +68 open in Germany
Portfolio:
  • Lower: On losses in my tech/industrial/consumer discretionary/biotech sector longs 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

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