Covenant’s Weekly Market Synopsis as of June 9, 2017

June 12, 2017

Another week of potential market moving events (more terrorism in the UK, the British election and former FBI director Comey’s congressional testimony) had little impact on equities, which treaded water for much of the week. Yet, a routine research piece released Friday by Goldman Sachs evidently found the sensitive spot in investors’ psyche catalyzing a […]

Covenant Weekly Market Synopsis as of May 26, 2017

May 30, 2017

Equity markets remained resilient in a week of potentially negative market-moving headlines: a terrorist bombing in the UK, a downgrade of China’s credit rating, and a Federal Reserve announcement for plans to begin reducing its balance sheet later this year. Domestic stock indices such as the S&P 500 and Nasdaq ended the week at record […]

Covenant Weekly Market Synopsis as of May 19, 2017

May 23, 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 […]

Covenant Weekly Market Synopsis as of May 19, 2017

May 22, 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 […]

Covenant Weekly Market Synopsis as of May 11, 2017

May 15, 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 […]

Covenant Weekly Market Synopsis as of April 28, 2017

May 1, 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 […]

Covenant Weekly Market Synopsis as of April 21, 2017

April 24, 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 […]

Covenant Weekly Market Synopsis as of April 14, 2017

April 17, 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 […]

Covenant Weekly Market Synopsis as of April 7, 2017

April 10, 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 […]

Covenant Weekly Market Synopsis as of March 31, 2017

April 3, 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 […]