Tuesday, November 04, 2025

Stocks Falling into Final Hour on Government Shutdown-Induced Economic Slowdown Worries, Earnings Outlook Jitters, Profit-Taking, Alt Energy/Tech Sector Weakness

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.1 -.3%
  • US 10-Year T-Note Yield 4.08% -3.0 basis points
  • 3-Month T-Bill Yield 3.87% unch.
  • China Iron Ore Spot 103.0 USD/Metric Tonne -.5%
  • Dutch TTF Nat Gas(European benchmark) 32.6 euros/megawatt-hour +2.6%
  • Citi US Economic Surprise Index 12.3 unch.
  • Citi Eurozone Economic Surprise Index 28.2 +.4 point
  • Citi Emerging Markets Economic Surprise Index 27.8 -.6 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(357 of 500 reporting) +11.5% +.4 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 300.21 +.47:  Growth Rate +14.7% +.2 percentage point, P/E 22.6 -.3
  • S&P 500 Current Year Estimated Profit Margin 13.52% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(7 of 10 reporting) +10.0% +6.3 percentage points
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 494.24 +9.21: Growth Rate +21.6% +.3 percentage point, P/E 33.9 -.6
  • Bloomberg US Financial Conditions Index .64 +2.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.40 +16.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 2.2 -.3 point
  • US Yield Curve 50.5 basis points (2s/10s) -.25 basis point
  • US Atlanta Fed GDPNow Q2 Forecast +4.0% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 36.1% +2.1 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.85% unch.: CPI YoY +2.96% unch.
  • 1-Year TIPS Spread 2.79 +2.0 basis points
  • 10-Year TIPS Spread 2.30 -1.0 basis point
  • Highest target rate probability for Jan. 28th FOMC meeting: 55.8% (+.2 percentage point) chance of 3.5%-3.75%. Highest target rate probability for March 18th meeting: 43.0%(-.8 percentage point) chance of 3.5%-3.75%. (current target rate is 3.75-4.0%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -170 open in Japan 
  • China A50 Futures: Indicating -64 open in China
  • DAX Futures: Indicating +25 open in Germany
Portfolio:
  • Slightly Lower: On losses in my tech/utility/biotech/consumer discretionary/industrial sector longs 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  • Market Exposure: Moved to 50% Net Long

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