Friday, July 25, 2025

Stocks Rising into Afternoon on US-Global Trade Deal Optimism, Earnings Outlook Boosts, Lower Long-Term Rates, Electrification/Gambling Sector Strength

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.7 -.12%
  • US 10-Year T-Note Yield 4.39% -1.0 basis point
  • 3-Month T-Bill Yield 4.35% unch.
  • China Iron Ore Spot 101.9 USD/Metric Tonne -1.4%
  • Dutch TTF Nat Gas(European benchmark) 32.5 euros/megawatt-hour +.44%
  • Citi US Economic Surprise Index 3.5 +1.1 point
  • Citi Eurozone Economic Surprise Index 32.3 -1.2 points
  • Citi Emerging Markets Economic Surprise Index 15.2 -.9 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(167 of 500 reporting) +8.3% -.7 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 283.31 +.29:  Growth Rate +10.9% +.1 percentage point, P/E 22.5 unch.
  • S&P 500 Current Year Estimated Profit Margin 13.44% +2.0 basis points
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(3 of 10 reporting) +22.4% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 454.56 +1.71: Growth Rate +20.5% +.5 percentage point, P/E 33.3 unch.
  • Bloomberg US Financial Conditions Index .62 unch.
  • Bloomberg Euro-Zone Financial Conditions Index 1.63 +16.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 6.8 +.3
  • US Yield Curve 47.0 basis points (2s/10s) -1.75 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +2.4% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 41.2% -1.0 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.66% unch.: CPI YoY +2.73% unch.
  • 1-Year TIPS Spread 2.63 -10.0 basis points
  • 10-Year TIPS Spread 2.42 unch.
  • Highest target rate probability for Sept. 17th FOMC meeting: 62.3% (+3.9 percentage points) chance of 4.0%-4.25%. Highest target rate probability for Oct. 29th meeting: 50.0%(+.2 percentage point) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Polymarket:
  • Which Countries Will the US Agree to Tariff Agreements with Before August? 
  • EU 71.0% +12.0 percentage points
  • India 29.0% +4.0 percentage points.
  • South Korea  50.0% +1.0 percentage point.
  • Mexico 29.0% -3.0 percentage points. 
Overseas Futures:
  • Nikkei 225 Futures: Indicating -12 open in Japan 
  • China A50 Futures: Indicating -11 open in China
  • DAX Futures: Indicating +145 open in Germany
Portfolio:
  • Higher: On gains in my tech/utility/industrial/financial/consumer discretionary sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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