Tuesday, August 11, 2026

Stocks Reversing Lower into Final Hour on War-Induced Inflation Fears, Oil Rise, Technical Selling, Healthcare/Retail Sector Weakness

Economic/Market Gauges:

  • North American Investment Grade CDS Index 51.6 -.3%
  • BofA Private Credit Proxy Index 74.0 +.2% 
  • Bloomberg US Securitized MBS/ABS/CMBS Avg. OAS .30 +2.0 basis points
  • BofA Global Financial Stress Indicator -.20 -1.0 basis point
  • European Financial Sector CDS Index 54.2 +.5%
  • Emerging Market CDS Index 141.4 -.3%
  • Israel Sovereign CDS 57.70 +3.8%
  • Bloomberg Global Trade Policy Uncertainty Index .9 unch.
  • US Morning Consult Daily Consume Sentiment Index 90.8 +1.8
  • Citi US Economic Surprise Index 26.90 -.3
  • Citi Eurozone Economic Surprise Index 68.4 +.2
  • Citi Emerging Markets Economic Surprise Index 25.6 +1.8
  • S&P 500 Current Quarter EPS Growth Rate YoY(446 of 500 reporting) +50.6% -.1 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 388.48 +.34:  Growth Rate +32.1% +.2 percentage point, P/E 20.0 unch.
  • S&P 500 Current Year Estimated Profit Margin 16.23% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(8 of 10 reporting) +138.4% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 944.42 +.39: Growth Rate +82.1% +.1 percentage point, P/E 19.7 -.3
  • Bloomberg US Financial Conditions Index 1.33 unch.
  • US Yield Curve 46.5 basis points (2s/10s) +.5 basis point
  • Bloomberg Industrial Metal Index 181.1 +.4%
  • Dutch TTF Nat Gas(European benchmark) 66.0 euros/megawatt-hour -1.3%
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 13.8% -.2 percentage point
  • US Atlanta Fed GDPNow Q3 Forecast +5.8% unch.
  • US 10-Year T-Note Yield 4.68% -2.0 basis points
  • 1-Year TIPS Spread 1.73 -4.0 basis points
  • Highest target rate probability for Oct. 28th FOMC meeting: 50.0% (-.9 percentage point) chance of 3.75%-4.0%. Highest target rate probability for Dec. 9th meeting: 44.5%(+1.9 percentage points) chance of 3.75%-4.0%. (current target rate is 3.5-3.75%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -110 open in Japan 
  • China A50 Futures: Indicating -68 open in China
  • KOSPI 200 Futures: Indicating +1 open in South Korea 
  • DAX Futures: Indicating +90 open in Germany
Portfolio:
  • Higher: On gains in my energy/financial/industrial sector longs, index hedges and emerging market shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% net long

No comments: