Covenant Weekly Market Synopsis for October 19, 2018

October 22, 2018

Last Week Today: The U.S. budget deficit jumped from $665.8 billion in 2017 to $779.0 billion in 2018 (3.9% of GDP) as spending increased by 3.2%, but tax receipts only rose by 0.4%. | The Job Opening and Labor Turnover (JOLT) survey for August revealed a record 7.1 million job openings – there are only […]

Covenant Weekly Market Synopsis for October 12, 2018

October 15, 2018

Last Week Today: Q3 Earnings season kicked off last week, with 47 companies posting results. Overall, the earnings reports were OK, but macroeconomic concerns swamped earnings reports, driving markets down. Earnings season really gets rolling this week, with nearly 200 companies scheduled to report. After a smattering of negative preannouncements, investors are keen to learn […]

Covenant Weekly Market Synopsis for October 5, 2018

October 8, 2018

Last Week Today: Italy’s anti-establishment government announced a budget with a deficit of 2.4%, pushing back against the European Union’s warnings for Italy to shore up its finances. | Fed Chair Jerome Powell remarked “The US is experiencing a remarkably positive set of economic circumstances…We’re a long way from neutral Fed Funds at this point, […]

Covenant Weekly Market Synopsis for September 28, 2018

October 1, 2018

Last Week Today: China pushed back from the negotiating table, snubbing additional trade talks with the U.S. (at least for now). | Key OPEC members Russia and Saudi Arabia dismissed U.S. requests for output increases to combat rising oil prices. | The Fed raised interest rates for the eighth time this cycle, to 2.25% and […]

Covenant Weekly Market Synopsis for September 17, 2018

September 17, 2018

Last Week Today: The US administration reached out to China seeking to resume trade talks and then, later in the week, Bloomberg reported that Trump still wants to impose tariffs on an additional $200 billion worth of imports from China. These seemingly contradictory actions can be reconciled through the lens of President Trump’s aggressive negotiating […]

Covenant Weekly Market Synopsis for September 7, 2018

September 10, 2018

Last Week Today. Jack Dorsey (CEO of Twitter) and Sheryl Sandberg (COO of Facebook) provided testimony to the Senate Intelligence Committee about foreign influence on, and alleged political biases of, their respective social media platforms. Alphabet Inc. (aka Google) declined the committee’s request to testify. Their appearance on Capitol Hill seemed to crystalize President Trump’s […]

Covenant Weekly Market Synopsis for August 31, 2018

September 4, 2018

Last Week Today: Trade negotiations once again took center stage and progress was mixed.  The agreement between Mexico and the U.S., along with concessions to the U.S. from Canada and the European Union (EU) boosted markets early in the week.  However, trade optimism faded when President Trump delivered a one-two punch of announcing the EU’s […]

Covenant Weekly Market Synopsis for August 24, 2018

August 27, 2018

Last Week Today: President Trump again criticized the Fed for raising interest rates, which seemed to have some effect in pushing the US Dollar lower early in the week. | Perceived legal problems for the President resulted in a minor risk-off trade on Tuesday when his former attorney pleaded guilty (implicating the President in the […]

Covenant Weekly Market Synopsis for August 17, 2018

August 20, 2018

Last Week Today. The crisis in Turkey combined with a local corruption scandal forced Argentina’s central bank to raise interest rates by 5% to 45% to arrest the decline in their peso. It was only last year that Argentina, a country that has defaulted on its debt six times in the previous 100 years, issued […]

2018 Mid-Year Economic Review and Outlook

August 17, 2018

In addition to reporting the fastest quarterly economic growth in four years, the Bureau of Economic Analysis revised several years of recent economic data and “found” $3 trillion of previously unreported income.