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 […]

Covenant Weekly Market Synopsis for January 5, 2018

January 8, 2018

BANG!  Equities came off the starting line in 2018 like Usain Bolt in a 100-meter dash (or Carl Lewis, for those of us who remember his storied career in the 1980’s).  The Nasdaq sprinted ahead by 3.4% last week, smashing through 7,000 for the first time, while the Dow Jones Industrial average also breached the […]

Covenant Weekly Market Synopsis for December 29, 2017

January 2, 2018

Out with the old and in with the new… welcome to 2018! Following a banner year for stocks, the consensus view is that the S&P 500 and many international stock indices will rise in value to the tune of low-double digits in 2018.  It is also a nearly universal view that inflation will return, traditional […]

Covenant Weekly Market Synopsis for December 15, 2017

December 18, 2017

Domestic stocks closed the week at record levels as likely tax reform and positive economic data (November retail sales +0.8%) propelled stocks higher. The S&P 500 tacked on gains of 0.9%, while the tech-heavy Nasdaq rose another 1.4%. International stocks, on the whole, gained 0.6% even as European and Japanese regional stock indices declined (-0.3% […]

Covenant Weekly Market Synopsis for December 8, 2017

December 11, 2017

After stumbling out of the gates in December (typically a very good calendar month for stocks), equities regained their footing over the last couple of days tacking on gains of 0.4% to close out the week at highs (at least for the S&P 500 and Dow Jones Industrial Average, though the Nasdaq is not far […]

Covenant Weekly Market Synopsis for December 1, 2017

December 4, 2017

13 is not an unlucky number for this bull market as November marked the thirteenth consecutive month of gains for the S&P 500 (inclusive of dividends). This streak is not unprecedented (since 1871 there have been six occasions where total returns were positive in 12 or more months according to Bloomberg), it’s just unusual. In […]

Covenant Weekly Market Synopsis as of November 20, 2017

November 20, 2017

As the third quarter earnings season draws to a close, approximately 90 percent of U.S. and European companies have now reported. Overall, earnings were largely in line or exceeded analysts’ estimates for the quarter. Yet, it appears some of the bloom may be coming off the “profits rose” as consensus estimates are no longer being […]

Covenant Weekly Market Synopsis for November 10, 2017

November 12, 2017

Domestic equity indices closed the week lower, but the damage was minimal with declines of less than 0.5%. Developed international markets followed their U.S. cousins, while emerging markets posted gains of 0.7% (pushing year-to-date performance above 34%). Interest rates moved modestly higher across the curve, with the yield on the 10-year UST closing the week […]

Covenant Weekly Market Synopsis for November 3, 2017

November 5, 2017

The two big news events last week with regards to the economy had little immediate impact on financial markets: House Republicans introduced their tax bill and Jerome “Jay” Powell was nominated as the next Fed Chair. Neither event moved markets significantly, with the exception of a decline in the prices of homebuilder stocks who are […]

Covenant Weekly Market Synopsis for October 27, 2017

October 30, 2017

In what was shaping up to be a down week for domestic equities, blowout earnings announcements in the technology sector by Amazon, Alphabet (aka Google) and Microsoft on Thursday afternoon catalyzed a strong rally on Friday.  The S&P 500 jumped 0.8% on the final day of the week, which by all accounts is a good […]