Friday, December 05, 2025

Stocks Modestly Higher into Final Hour on US Economic Data, Earnings Outlook Optimism, Technical Buying, Tech/Consumer Discretionary Sector Strength

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.19 -.23%
  • US 10-Year T-Note Yield 4.14% +4.0 basis points
  • 3-Month T-Bill Yield 3.69% -1.0 basis point
  • China Iron Ore Spot 102.7 USD/Metric Tonne -.7%
  • Dutch TTF Nat Gas(European benchmark) 27.3 euros/megawatt-hour +.7%
  • Citi US Economic Surprise Index 11.8 +1.3 points
  • Citi Eurozone Economic Surprise Index 30.0 +5.3 points
  • Citi Emerging Markets Economic Surprise Index 29.5 -1.3 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(495 of 500 reporting) +12.9% -.1 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 305.70 +.11:  Growth Rate +13.6% unch., P/E 22.5 +.1
  • S&P 500 Current Year Estimated Profit Margin 13.49% +1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(9 of 10 reporting) +17.5% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 509.69 +.29: Growth Rate +24.2% +.1 percentage point, P/E 32.6 +.2
  • Bloomberg US Financial Conditions Index .69 +3.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.46 -6.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 1.9 unch.
  • US Yield Curve 57.5 basis points (2s/10s) -.25 basis point
  • US Atlanta Fed GDPNow Q2 Forecast +3.5% -.3 percentage point
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 29.8% -.9 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.85% unch.: CPI YoY +2.96% unch.
  • 1-Year TIPS Spread 2.60 +2.0 basis points
  • 10-Year TIPS Spread 2.27 unch.
  • Highest target rate probability for Jan. 28th FOMC meeting: 65.8% (-.4 percentage point) chance of 3.5%-3.75%. Highest target rate probability for March 18th meeting: 46.9%(+1.0 percentage point) chance of 3.5%-3.75%. (current target rate is 3.75-4.0%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +200 open in Japan 
  • China A50 Futures: Indicating -3 open in China
  • DAX Futures: Indicating +41 open in Germany
Portfolio:
  • Slightly Higher: On gains in my consumer discretionary/tech sector longs 
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

No comments: