Covenant Weekly Market Synopsis for November 23, 2018

November 26, 2018

In a holiday-shortened week, we diverge from our usual Market Synopsis format to focus on two investment assets making the majority of headlines: equities and crude oil. Equity Market Update. There was not much to be thankful for last week in the land of risk assets, particularly in the US: S&P 500: -3.8% / -2.74% […]

Covenant Weekly Market Synopsis for November 9, 2018

November 12, 2018

“For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” – Winston Churchill Last Week Today. The results of the midterm elections, while exciting in certain local races, concluded as expected at the national level with a divided […]

Covenant Weekly Market Synopsis for October 26, 2018

October 29, 2018

Last Week Today: Saudi Arabia pledged to eliminate any oil shortage from Iranian sanctions by pushing up production from 10.7 million to 11 million barrels per day. | MBS, Saudi’s crown prince called Khashoggi’s murder “heinous”; two days later, Saudi Arabia admitted the murder was premeditated – and the worst cover-up in history continued to […]

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 […]