Tuesday, September 16, 2025

Stocks Slightly Lower into Final Hour on Fed Jitters, Profit-Taking, Technical Selling, Utility/Regional Bank Sector Weakness

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 36.66 +.22%
  • US 10-Year T-Note Yield 4.02% -2.0 basis points
  • 3-Month T-Bill Yield 3.96% -3.0 basis points
  • China Iron Ore Spot 105.9 USD/Metric Tonne -.3%
  • Dutch TTF Nat Gas(European benchmark) 32.3 euros/megawatt-hour +.5%
  • Citi US Economic Surprise Index 12.8 +3.1 points
  • Citi Eurozone Economic Surprise Index 23.0 +5.1 points
  • Citi Emerging Markets Economic Surprise Index 7.5 +1.2 points
  • S&P 500 Current Quarter EPS Growth Rate YoY(2 of 500 reporting) +8.3% unch.
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 292.54 +.10:  Growth Rate +11.7% unch., P/E 22.6 unch.
  • S&P 500 Current Year Estimated Profit Margin 13.48% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 486.69 +.47: Growth Rate +19.0% +.1 percentage point, P/E 33.3 unch.
  • Bloomberg US Financial Conditions Index .70 -3.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.06 -41.0 basis points
  • Bloomberg Global Trade Policy Uncertainty Index 2.7 +.1 point
  • US Yield Curve 51.25 basis points (2s/10s) +1.5 basis points
  • US Atlanta Fed GDPNow Q2 Forecast +3.4% +30.0 basis points
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 38.9% -1.7 percentage points
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.99% unch.: CPI YoY +3.0% -1.0 basis point
  • 1-Year TIPS Spread 2.72 unch.
  • 10-Year TIPS Spread 2.37 unch.
  • Highest target rate probability for Oct. 29th FOMC meeting: 76.8% (+2.5 percentage points) chance of 3.75%-4.0%. Highest target rate probability for Dec. 10th meeting: 69.9%(+.5 percentage point) chance of 3.5%-3.75%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating -297 open in Japan 
  • China A50 Futures: Indicating +15 open in China
  • DAX Futures: Indicating +91 open in Germany
Portfolio:
  • Slightly Lower: On losses in my utility/consumer discretionary sector longs and emerging markets shorts
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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