Monday, December 08, 2025

Stocks Lower into Final Hour on Rising Long-Term Rates, Technical Selling, Profit-Taking, Medical/Homebuilding Sector Weakness

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.16 -.06%
  • US 10-Year T-Note Yield 4.17% +3.0 basis points
  • 3-Month T-Bill Yield 3.70% +1.0 basis point
  • China Iron Ore Spot 101.4 USD/Metric Tonne -.7%
  • Dutch TTF Nat Gas(European benchmark) 26.9 euros/megawatt-hour -1.5%
  • Citi US Economic Surprise Index 132.0 +1.2 points
  • Citi Eurozone Economic Surprise Index 32.3 +2.3 points
  • Citi Emerging Markets Economic Surprise Index 29.7 +.2 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(495 of 500 reporting) +12.9% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 306.03 +.33:  Growth Rate +13.7% +.1 percentage point, P/E 22.4 -.1
  • S&P 500 Current Year Estimated Profit Margin 13.49% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(9 of 10 reporting) +17.5% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 510.48 +.79: Growth Rate +24.4% +.2 percentage point, P/E 32.5 -.1
  • Bloomberg US Financial Conditions Index .73 +4.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.46 unch.
  • Bloomberg Global Trade Policy Uncertainty Index 2.2 +.3
  • US Yield Curve 59.0 basis points (2s/10s) +1.5 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +3.5% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 28.5% -1.3 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.76% -9.0 basis points: CPI YoY +2.96% unch.
  • 1-Year TIPS Spread 2.56 -4.0 basis points
  • 10-Year TIPS Spread 2.27 unch.
  • Highest target rate probability for Jan. 28th FOMC meeting: 68.5% (+3.1 percentage points) chance of 3.5%-3.75%. Highest target rate probability for March 18th meeting: 49.5%(+2.6 percentage points) chance of 3.5%-3.75%. (current target rate is 3.75-4.0%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -91 open in Japan 
  • China A50 Futures: Indicating -57 open in China
  • DAX Futures: Indicating -3 open in Germany
Portfolio:
  • Higher: On gains in my consumer financial/tech sector longs, index hedges and emerging market shorts 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

No comments: