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 […]

Covenant Weekly Market Synopsis for August 10, 2018

August 13, 2018

Last Week Today:  Tesla’s CEO and major shareholder Elon Musk Tweeted the possibility of taking Tesla private at $420 per share – TSLA’s price jumped 11%; the SEC is investigating Musk’s claims that financing for the privatization was “secured” and several shareholder lawsuits have been filed relating to the veracity of the tweet. | China […]

Covenant Weekly Market Synopsis for July 20, 2018

July 23, 2018

Last Week Today: Federal Reserve Chair Jerome Powell gave his semiannual testimony to Congress, which can be summed up as: economy strong, interest rates to move higher. | In a CNBC interview and subsequent Tweets, President Trump expressed his view that the Fed should not raise interest rates. The President’s comments were notable for two […]

Covenant Weekly Market Synopsis for July 13, 2018

July 16, 2018

Last Week Today: Brett Kavanaugh was nominated to fill Anthony Kennedy’s Supreme Court seat. The announcement did not immediately impact markets, but Kavanaugh’s skepticism of regulatory agencies is consistent with President Trump’s goal of a small government and could prove beneficial to businesses in the long run. | Oil output in the U.S. topped 11 […]