Wednesday, May 14, 2025

Stocks Slightly Higher into Final Hour on US-Global Trade Deals, Rising US Growth Acceleration Odds, Short-Covering, Tech/Shipping Sector Strength

Economic Gauges:

  • Bloomberg Emerging Markets Currency Index 36.98 +.06% 
  • US 10-Year T-Note Yield 4.53% +7.0 basis points
  • 3-Month T-Bill Yield 4.39% +2.0 basis points
  • China Iron Ore Spot 101.2 USD/Metric Tonne -.6%
  • Dutch TTF Nat Gas(European benchmark) 35.0 euros/megawatt-hour -2.0%
  • Citi US Economic Surprise Index -7.1 +1.2 points
  • Citi Eurozone Economic Surprise Index 15.6 -.2 point
  • Citi Emerging Markets Economic Surprise Index 26.8 -.1 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(455 of 500 reporting) +12.2% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 276.34 -.16:  Growth Rate +12.1% unch., P/E 21.4 +.1
  • S&P 500 Current Year Estimated Profit Margin 13.33% -1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(7 of 10 reporting) +29.1% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 425.38 +.25: Growth Rate +23.0% +.1 percentage point, P/E 32.1 +.2
  • Bloomberg US Financial Conditions Index .37 +2.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.25 -5.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 8.6 unch.
  • US Yield Curve 47.25 basis points (2s/10s) -1.0 basis point
  • US Atlanta Fed GDPNow Q2 Forecast +2.3% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 37.5% -.1 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.60% unch.: CPI YoY +2.38% -2.0 basis points
  • 1-Year TIPS Spread 2.85 +5.0 basis points
  • 10-Year TIPS Spread 2.38 +4.0 basis points
  • Highest target rate probability for July 30th FOMC meeting: 63.3% (-1.8 percentage points) chance of 4.25%-4.5%. Highest target rate probability for Sept. 17th meeting: 49.6%(-2.1 percentage points) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -393 open in Japan 
  • China A50 Futures: Indicating +10 open in China
  • DAX Futures: Indicating +40 open in Germany
Portfolio:
  • Slightly Higher: On gains in my consumer discretionary/technology/financial sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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