Thursday, March 05, 2026

Stocks Falling into Final Hour on Long-Term Rate Rise, Economy/Earnings Outlook Jitters, Oil Surge, Transport/Metals & Mining Sector Weakness

Economic/Market Gauges:

  • North American Investment Grade CDS Index 56.4 +4.7%
  • BofA Private Credit Proxy Index 74.0 -.6% 
  • Bloomberg US Securitized MBS/ABS/CMBS Avg. OAS .25 unch.
  • BofA Global Financial Stress Indicator .15 unch.
  • European Financial Sector CDS Index 61.7 +3.8%
  • Emerging Market CDS Index 138.3 +3.0%
  • Israel Sovereign CDS 80.1 -3.3% 
  • Bloomberg Global Trade Policy Uncertainty Index 1.4 -.3
  • Citi US Economic Surprise Index 39.3 +.3 point
  • Citi Eurozone Economic Surprise Index 25.9 -.4 point
  • Citi Emerging Markets Economic Surprise Index 37.3 -.8 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(491 of 500 reporting) +13.6% +.5 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 322.79 +.18:  Growth Rate +16.3% +.1 percentage point, P/E 21.2 -.1
  • S&P 500 Current Year Estimated Profit Margin 14.75% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(10 of 10 reporting) +28.1% +.1 percentage point
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 514.79 +.52: Growth Rate +29.4% +.1 percentage point, P/E 29.2 +.3
  • Bloomberg US Financial Conditions Index .49 +15.0 basis points
  • US Yield Curve 54.5 basis points (2s/10s) -2.5 basis points 
  • Bloomberg Industrial Metal Index 169.0 -1.8% 
  • Dutch TTF Nat Gas(European benchmark) 50.7 euros/megawatt-hour +4.0% 
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 27.6% -2.2 percentage points
  • US Atlanta Fed GDPNow Q1 Forecast +3.0% unch.
  • US 10-Year T-Note Yield 4.14% +5.0 basis points
  • 1-Year TIPS Spread 4.25 +21.0 basis points
  • Highest target rate probability for April 29th FOMC meeting: 87.3% (-.9 percentage point) chance of 3.5%-3.75%. Highest target rate probability for June 17th meeting: 67.7%(+.9 percentage point) chance of 3.5%-3.75%. (current target rate is 3.5-3.75%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +2,400 open in Japan 
  • China A50 Futures: Indicating +37 open in China
  • DAX Futures: Indicating +80 open in Germany
Portfolio:
  • Slightly Lower: On losses in my transport/biotech/industrial/consumer discretionary sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and emerging market shorts
  • Market Exposure: Moved to 25% Net Long

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