Covenant Weekly Market Synopsis for February 9, 2018

February 12, 2018

It was a volatile week both in terms of stock prices (S&P 500: Mon. -4.1%, Tues. +1.74%, Wed. -0.5%, Thur. -3.8%, Fri. +1.49%), and specifically for the VIX Index which experienced its largest move ever on Monday afternoon jumping 115% (a lot of that move occurred in the last 30 minutes of trading).   The intraday […]

Covenant Weekly Market Synopsis for February 2, 2018

February 5, 2018

After a long (15-month), virtually uninterrupted run higher, equity markets had a “challenging” week. Losses were broad and deep, with little discernment regarding asset type or geography as stocks, bond, commodities, and precious metals declined simultaneously. Last week’s price decline of 3.9% was higher than any such drawdown in the S&P 500 for all of […]

Covenant Weekly Market Synopsis for January 26, 2018

January 29, 2018

Although Friday’s early estimate of annualized real (inflation-adjusted) Q4 2017 GDP growth was below expectations (2.6% actual vs. 3.0% consensus), it was, nonetheless, a strong report. Final sales (domestic and sales to international consumers) were up 4.3%, and Personal consumption rose 3.8%, the strongest reading in 18 months. The main drags on GDP in the […]

Covenant Weekly Market Synopsis for January 12, 2018

January 15, 2018

  198%. That would be the S&P 500’s gain at the end of 2018 if the index continues to appreciate at the same rate as the first two trading weeks of this year. Of course, extrapolating results from short datasets are not statistically significant (that is, the forecasts are unreliable – but if anyone wants […]

Covenant Weekly Market Synopsis for January 5, 2018

January 8, 2018

BANG!  Equities came off the starting line in 2018 like Usain Bolt in a 100-meter dash (or Carl Lewis, for those of us who remember his storied career in the 1980’s).  The Nasdaq sprinted ahead by 3.4% last week, smashing through 7,000 for the first time, while the Dow Jones Industrial average also breached the […]

Covenant Weekly Market Synopsis for December 29, 2017

January 2, 2018

Out with the old and in with the new… welcome to 2018! Following a banner year for stocks, the consensus view is that the S&P 500 and many international stock indices will rise in value to the tune of low-double digits in 2018.  It is also a nearly universal view that inflation will return, traditional […]

Covenant Weekly Market Synopsis for December 15, 2017

December 18, 2017

Domestic stocks closed the week at record levels as likely tax reform and positive economic data (November retail sales +0.8%) propelled stocks higher. The S&P 500 tacked on gains of 0.9%, while the tech-heavy Nasdaq rose another 1.4%. International stocks, on the whole, gained 0.6% even as European and Japanese regional stock indices declined (-0.3% […]

Covenant Weekly Market Synopsis for December 8, 2017

December 11, 2017

After stumbling out of the gates in December (typically a very good calendar month for stocks), equities regained their footing over the last couple of days tacking on gains of 0.4% to close out the week at highs (at least for the S&P 500 and Dow Jones Industrial Average, though the Nasdaq is not far […]

Covenant Weekly Market Synopsis for December 1, 2017

December 4, 2017

13 is not an unlucky number for this bull market as November marked the thirteenth consecutive month of gains for the S&P 500 (inclusive of dividends). This streak is not unprecedented (since 1871 there have been six occasions where total returns were positive in 12 or more months according to Bloomberg), it’s just unusual. In […]

Covenant Weekly Market Synopsis as of November 20, 2017

November 20, 2017

As the third quarter earnings season draws to a close, approximately 90 percent of U.S. and European companies have now reported. Overall, earnings were largely in line or exceeded analysts’ estimates for the quarter. Yet, it appears some of the bloom may be coming off the “profits rose” as consensus estimates are no longer being […]