Friday, June 06, 2025

Stocks Rising into Final Hour on US-Global Trade Deal Hopes, US Jobs Report, Short-Covering, Transport/Alt Energy Sector Strength

Economic Gauges:

  • Bloomberg Emerging Markets Currency Index 37.09 -.16% 
  • US 10-Year T-Note Yield 4.50% +11.0 basis points
  • 3-Month T-Bill Yield 4.34% +1.0 basis points
  • China Iron Ore Spot 95.0 USD/Metric Tonne -.6%
  • Dutch TTF Nat Gas(European benchmark) 36.3 euros/megawatt-hour -.4%
  • Citi US Economic Surprise Index -5.9 +.8 point
  • Citi Eurozone Economic Surprise Index 26.3 -1.0 point
  • Citi Emerging Markets Economic Surprise Index 34.4 -.2 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(498 of 500 reporting) +12.7% +.3 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 277.13 +.15:  Growth Rate +9.1% +.1 percentage point, P/E 21.6 -.1
  • S&P 500 Current Year Estimated Profit Margin 13.24% -1.0 basis point
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(10 of 10 reporting) +33.0% +.6 percentage point
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 429.22 +.22: Growth Rate +14.9% unch., P/E 33.1 -.1
  • Bloomberg US Financial Conditions Index .34 -3.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.44 -3.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 6.2 -.9
  • US Yield Curve 46.0 basis points (2s/10s) -.75 basis point
  • US Atlanta Fed GDPNow Q2 Forecast +3.8% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 41.1% -1.7 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.65% unch.: CPI YoY +2.40% unch.
  • 1-Year TIPS Spread 2.77 unch.
  • 10-Year TIPS Spread 2.32 +2.0 basis points
  • Highest target rate probability for July 30th FOMC meeting:  83.4% (-14.8 percentage points) chance of 4.25%-4.5%. Highest target rate probability for Sept. 17th meeting: 52.0%(-2.3 percentage points) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +263 open in Japan 
  • China A50 Futures: Indicating -76 open in China
  • DAX Futures: Indicating +21 open in Germany
Portfolio:
  • Higher: On gains in my tech/industrial/financial/consumer discretionary/utility sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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