Thursday, February 05, 2026

Stocks Falling into Final Hour on Crypto Plunge, AI Infrastructure Build-Out Concerns, Earnings Jitters, Tech/Alt Energy Sector Weakness

Economic/Market Gauges:

  • North American Investment Grade CDS Index 51.2 +2.4%
  • Bloomberg US Securitized MBS/ABS/CMBS Avg. OAS .20 unch.
  • BofA Global Financial Stress Indicator -.09 +2.0 basis points
  • European Financial Sector CDS Index 54.1 +1.4%
  • Emerging Market CDS Index 128.56 +1.3%
  • Bloomberg Global Trade Policy Uncertainty Index 2.0 -.2
  • Citi US Economic Surprise Index 38.0 -15.3 points
  • Citi Eurozone Economic Surprise Index 27.9 +11.0 points
  • Citi Emerging Markets Economic Surprise Index 29.0 +.4 point 
  • S&P 500 Current Quarter EPS Growth Rate YoY(273 of 500 reporting) +14.4% +.5 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 317.19 +.01:  Growth Rate +17.8% unch., P/E 21.5 -.2
  • S&P 500 Current Year Estimated Profit Margin 12.71% -10.0 basis points
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(6 of 10 reporting) +21.4% +2.5 percentage points
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 499.28 +.49: Growth Rate +21.5% +.1 percentage point, P/E 29.2 -.4
  • Bloomberg US Financial Conditions Index .74 -3.0 basis points
  • US Yield Curve 73.0 basis points (2s/10s) +1.5 basis point
  • Bloomberg Industrial Metal Index 166.8 -.9% 
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 27.2% +1.9 percentage points
  • US Atlanta Fed GDPNow Q4 Forecast +4.2% unch.
  • US 10-Year T-Note Yield 4.20% -8.0 basis points
  • 1-Year TIPS Spread 3.33 -7.0 basis points
  • Highest target rate probability for April 29th FOMC meeting: 58.1% (-17.5 percentage points) chance of 3.5%-3.75%. Highest target rate probability for June 17th meeting: 49.3%(+3,4 percentage points) chance of 3.25%-3.5%. (current target rate is 3.5-3.75%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +230 open in Japan 
  • China A50 Futures: Indicating -92 open in China
  • DAX Futures: Indicating +60 open in Germany
Portfolio:
  • Lower: On losses in my tech/industrial/consumer discretionary/financial/biotech sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

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