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May 22nd, 2017

Covenant Weekly Market Synopsis as of May 19, 2017

Last week a branch snapped in the forest… waking the hibernating volatility bear. Jumping to all fours, teeth bared, ready to attack. The groggy bear surveyed the landscape, listening intently while sniffing the air for even the slightest scent of trouble. Carefully camouflaged under promises of tax reform, deregulation and fiscal stimulus the volatility bear […]

May 15th, 2017

Covenant Weekly Market Synopsis as of May 11, 2017

Thus far in May, domestic equity indices have been consolidating with the DJIA, S&P 500 and Nasdaq hovering near record highs. Developed international stocks have fared better for the month and the year – as have emerging and frontier market equity indices. Corporate earnings per share for the first quarter in the U.S. are showing […]

May 1st, 2017

Covenant Weekly Market Synopsis as of April 28, 2017

April was a short, two-act play in which our favorite protagonist, equities, ultimately moved higher. In the first act, geopolitical tensions (e.g. North Korea/China and Syria/Russia), weaker economic data and the French Election generated a modest sell-off in risk assets. In the second act, improved corporate earnings and anticipation of tax reform overcame still weaker […]

April 24th, 2017

Covenant Weekly Market Synopsis as of April 21, 2017

Equity markets were a tad schizophrenic last week, though not overly so. There were some decent intraday reversals, but ultimately strong performance on Monday and Thursday led to a weekly gain of nearly 1% in the S&P 500. Small Capitalization stocks (i.e. Russell 2000) and the tech-heavy Nasdaq Index performed even better, generating gains of […]

April 17th, 2017

Covenant Weekly Market Synopsis as of April 14, 2017

Even with growing uncertainty about the new administration’s policy priorities, geopolitical risks (North Korea and China, Syria and Russia) are beginning to steal the headlines. These risks, along with relatively weak domestic economic data releases last week, helped create a bid for defensive assets and selling pressure on risk assets. Domestic equities declined for the […]

April 10th, 2017

Covenant Weekly Market Synopsis as of April 7, 2017

Risk assets kicked off the second quarter on a modestly soft note, as domestic equities declined less than 0.5% for the week (following flattish domestic equity performance in March).  Small capitalization stocks (which were a major beneficiary of President Trump’s election) were an exception, falling 1.5% (as measured by the Russell 2000).  International developed markets […]

April 3rd, 2017

Covenant Weekly Market Synopsis as of March 31, 2017

Friday marked the end of a solid first quarter for risk assets. Although gains in March were fairly muted for domestic stocks, year to date the S&P 500 is up 6.1% (inclusive of dividends). Meanwhile, higher beta international equities (as measured by the EAFE Index) and emerging market stocks (MXEF Index) accelerated past domestic equities […]

March 27th, 2017

Covenant Weekly Market Synopsis as of March 24, 2017

One step forward, two steps back. In a week that President Donald Trump approved the controversial Keystone XL project (a 1,179-mile pipeline running from the oil sands of Alberta, Canada to Steele City, Nebraska), speaker of the House Paul Ryan’s healthcare plan to repeal and replace the Affordable Healthcare Act (“ACA”) failed. Equity markets seemed […]

March 6th, 2017

Covenant Weekly Market Synopsis as of March 3, 2017

Equities moved modestly higher on the week, thanks, in large part, to the jump start provided by President Trump’s speech on Tuesday night. While there is a lot of controversy swirling around President Trump, investors focused on explicit and implicit promises contained in his speech and bought with both hands on Wednesday pushing domestic stocks […]

February 26th, 2017

Covenant Weekly Market Synopsis as of February 24, 2017

Although equity markets continued to rally on the week, fixed income investors are singing a different tune. Domestic stocks led the way, highlighted by Friday’s eleventh consecutive positive session for the Dow Jones Industrial Average – its longest winning streak since 1987. The S&P 500 ended the week with a 0.7% gain, while global equities […]