Covenant Weekly Market Synopsis for June 8, 2018

June 11, 2018

Last Week Today: Former Fed Chair Ben Bernanke warned that the US economy will face a “Wile E. Coyote moment” in 2020 as the double-whammy of fading effects from the tax-cut stimulus are met with the impact of Fed interest rate hikes. | Mexico placed tariffs on $3 billion of U.S. goods (e.g., apples and […]

Covenant Weekly Synopsis for June 1, 2018

June 4, 2018

Last Week Today – Italian President Sergio Mattarella blocked anti-European Union coalition parties; the Trump administration caught the world (and investors) off-guard by imposing new tariffs on steel and aluminum imports from the EU, Canada, and Mexico; these same NAFTA partners retaliated with tariffs on US imports to their respective countries; nonfarm payrolls grew by […]

Covenant Weekly Synopsis for May 11, 2018

May 14, 2018

Last week today – Vladimir Putin inaugurated for his second consecutive (and fourth overall) Presidency of Russia; Kim Jong Un summoned to China for second time in two months (no doubt related to the upcoming summit between Trump and Kim); Trump withdrew from the Iran nuclear deal (despite pressure from France, Germany, and Britain); North […]

Covenant Weekly Market Synopsis for May 4, 2018

May 5, 2018

Through Friday, 82% of S&P 500 companies had reported Q1 operating results, and the numbers have been strong. According to data from Goldman Sachs, year-over-year earnings per share (EPS) growth was 23%. The lower tax rate contributed to Q1 earnings strength, but companies experienced top line (i.e., revenue) growth as well. Revenue growth is a […]

Covenant Weekly Market Synopsis for April 27, 2018

April 30, 2018

In a week where the 10-year bond yield breaching 3% made countless headlines, yields on bonds maturing in 10 years or more actually declined on a week-over-week basis.  The decline was modest, but it appears there is demand for longer-dated bonds with a 3% yield (vs. a dividend yield of less than 2% for the […]

Covenant Weekly Market Synopsis for April 20, 2018

April 23, 2018

After months of escalating geopolitical tensions, last week brought good news on multiple fronts. North and South Korea are evidently negotiating an end to the Korean War – a war in which fighting ended in 1953, but did not include a formal peace treaty. It was announced that CIA Director Mike Pompeo traveled to North […]

Covenant Weekly Market Synopsis for April 13, 2018

April 16, 2018

The week in review: positive developments in the trade spat with China, U.S. sanctions Russia, the FBI raids the office (hotel room, safety-deposit box, phones and home) of President Trump’s lawyer, House Speaker Paul Ryan announces he won’t run for re-election, Facebook’s CEO testifies to Congress about personal data security of its users, tweets about […]

Covenant’s Weekly Market Synopsis for April 6, 2018

April 9, 2018

Tariff tough-talk once again roiled financial markets last week, as uncertainty provoked volatility. The 5-day trading week included two daily declines of more than 2% in the S&P 500 and two days of 1%+ gains, netting to a weekly decrease of 1.4%. The Nasdaq Index did worse, down 2.1% as the treasured FANG (Facebook, Amazon, […]

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 […]