Monday, June 10, 2024

Stocks Reversing Higher into Final Hour on US Growth Prospects, Earnings Outlook Optimism, Technical Buying, Tech/Energy Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Around Even
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.7 +4.1%
  • DJIA Intraday % Swing .48 -47.7%
  • Bloomberg Global Risk On/Risk Off Index 65.5 +2.3%
  • Euro/Yen Carry Return Index 184.9 -.21%
  • Emerging Markets Currency Volatility(VXY) 7.7 +1.6%
  • CBOE S&P 500 Implied Correlation Index 12.1 +1.3% 
  • ISE Sentiment Index 135.0 -15.0
  • Total Put/Call .90 +7.1%
  • NYSE Arms .83 -15.3%
  • NYSE Non-Block Money Flow -$209.4M 
Credit Investor Angst:
  • North American Investment Grade CDS Index 50.0 -.08%
  • US Energy High-Yield OAS 264.0 -.35%
  • Bloomberg TRACE # Distressed Bonds Traded 298 -2
  • European Financial Sector CDS Index 60.7 +3.8%
  • Deutsche Bank Subordinated 5Y Credit Default Swap 167.6 +3.3%
  • Italian/German 10Y Yld Spread 140.0 basis points +6.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 96.4 +.01%
  • Emerging Market CDS Index 165.6 -.64%
  • Israel Sovereign CDS 121.8 -1.3%
  • China Corp. High-Yield Bond USD ETF(KHYB) 24.8 +.1%
  • 2-Year SOFR Swap Spread -13.0 basis points -.25 basis point
  • Treasury Repo 3M T-Bill Spread 6.0 basis points -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -2.5 -.5 basis point
  • MBS  5/10 Treasury Spread 144.0 +1.0 basis point
  • Bloomberg CMBS Investment Grade Bbb Average OAS 725.0 -5.0 basis points
  • Avg. Auto ABS OAS 57.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 39.4 -.1%
  • 3-Month T-Bill Yield 5.38% +2.0 basis points
  • China Iron Ore Spot 107.5 USD/Metric Tonne +1.3%
  • Dutch TTF Nat Gas(European benchmark) 34.3 euros/megawatt-hour +3.5%
  • Citi US Economic Surprise Index -6.6 -1.1 points
  • Citi Eurozone Economic Surprise Index 28.2 +2.1 points
  • Citi Emerging Markets Economic Surprise Index 4.9 -3.4 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(497 of 500 reporting) +7.8% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 258.51 +.26:  Growth Rate +13.4% +.2 percentage point, P/E 20.7 unch.
  • S&P 500 Current Year Estimated Profit Margin 12.85% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(9 of 10 reporting) +52.9% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 330.91 +.48: Growth Rate +23.4% +.2 percentage point, P/E 32.2 unch.
  • Bloomberg US Financial Conditions Index 1.10 +10.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.06 +4.0 basis points
  • US Yield Curve -41.75 basis points (2s/10s) +3.0 basis points
  • US Atlanta Fed 2Q GDPNow Forecast +3.1% +50.0 basis points
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 47.1% -.2 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.69% unch.: CPI YoY +3.36% unch.
  • 10-Year TIPS Spread 2.31 unch.
  • Highest target rate probability for July 31st FOMC meeting: 91.1%(-.7 percentage point) chance of 5.25%-5.5%. Highest target rate probability for Sept. 18th meeting: 51.0%(+1.5 percentage points) chance of 5.25%-5.5%.
Overseas Futures:
  • Nikkei 225 Futures: Indicating +277 open in Japan 
  • China A50 Futures: Indicating -61 open in China
  • DAX Futures: Indicating +54 open in Germany
Portfolio:
  • Modestly Higher:  On gains in my industrial/tech/biotech/consumer discretionary sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

No comments: