Friday, August 29, 2025

Stocks Lower into Afternoon on Higher Long-Term Rates, Earnings Outlook Jitters, Technical Selling, Tech/Alt Energy Sector Weakness

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.45 -.21%
  • US 10-Year T-Note Yield 4.22% +1.0 basis point
  • 3-Month T-Bill Yield 4.14% -3.0 basis points
  • China Iron Ore Spot 102.5 USD/Metric Tonne -.9%
  • Dutch TTF Nat Gas(European benchmark) 31.6 euros/megawatt-hour -.3%
  • Citi US Economic Surprise Index 26.2 -.6 point
  • Citi Eurozone Economic Surprise Index 25.2 -.4 point
  • Citi Emerging Markets Economic Surprise Index 7.2 +5.9 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(489 of 500 reporting) +12.4% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 289.55 +.33:  Growth Rate +10.6% +.2 percentage point, P/E 22.5 +.1
  • S&P 500 Current Year Estimated Profit Margin 13.52% +9.0 basis points
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(9 of 10 reporting) +27.9% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 475.35 +1.99: Growth Rate +16.3% +.5 percentage point, P/E 32.7 unch.
  • Bloomberg US Financial Conditions Index .66 +1.0 basis point
  • Bloomberg Euro-Zone Financial Conditions Index 1.53 +12.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 4.3 unch.
  • US Yield Curve 59.75 basis points (2s/10s) +2.75 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +3.5% +130.0 basis points
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 44.4% -1.0 percentage point
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.95% +6.0 basis points: CPI YoY +2.84% unch.
  • 1-Year TIPS Spread 2.77 -1.0 basis point
  • 10-Year TIPS Spread 2.42 unch.
  • Highest target rate probability for Oct. 29th FOMC meeting: 48.3% (+3.8 percentage points) chance of 3.75%-4.0%. Highest target rate probability for Dec. 10th meeting: 46.3%(-2.0 percentage points) chance of 3.75%-4.0%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -563 open in Japan 
  • China A50 Futures: Indicating +34 open in China
  • DAX Futures: Indicating +90 open in Germany
Portfolio:
  • Lower: On losses in my tech/industrial/consumer discretionary sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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