Covenant Weekly Market Synopsis for March 23, 2018

March 26, 2018

Tariffs and hawks… those were the stories last week. Unrelated, yet fused by timing. In a week that included a pre-scheduled meeting of the Federal Open Market Committee (FOMC), President Trump announced a second wave of tariffs, explicitly targeting Chinese imports. China responded…retaliated. Perceptions of a brewing trade war between the world’s two largest economies […]

Covenant Weekly Market Synopsis for March 9, 2018

March 12, 2018

A combination of reduced geopolitical tensions and economic data that was neither too cold nor too hot created a healthy environment for global risk assets. Domestic equities were the largest beneficiaries, as the S&P 500 rose 3.6% and is now only 3% below its January record level. The technology-laden Nasdaq Index rose 4.2% and hit […]

Covenant Weekly Market Synopsis for March 2, 2018

March 5, 2018

Equities suffered a one-two punch from the Fed and the President last week, leading to a 2% decline in the S&P 500. New Fed Chair Jerome Powell landed the first blow on the stock market during his testimony to Congress, when he testified that inflation over the long run should include times when it is […]

Covenant Weekly Market Synopsis for February 23, 2018

February 26, 2018

In a holiday-shortened week, domestic stocks tacked on modest gains, though most remain negative for the month. Absent substantial increases over the next three days, the S&P’s streak of consecutive positive months will end at 15 months in February – a remarkable run. Global stocks indices were mixed last week. The Nikkei’s decline of 1.1% […]

Covenant Weekly Market Synopsis for February 16, 2018

February 19, 2018

Following a tumultuous seven days to kick-off the month of February, financial markets regained their footing in the second full week of trading and posted substantial gains. Domestic equities rose 4% or better, and the tech-heavy Nasdaq gained more than 5%. International developed markets appreciated by 3.4% (as measured by the EAFE Index) while Emerging […]

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 […]