- Domestic equities traded higher, helped by an end-of-the-week boost. Large capitalization stocks outperformed smaller capitalization stocks, while growth generally outperformed value. International equities also ended higher, with Emerging Markets outperforming Developed stocks.
- Treasury yields rallied after positive news on US/China trade. The yield on the US 10-year Treasury Note reached 2.79%, up from last week’s 2.70% close.
- Oil prices increased supported by OPEC cuts in December, which showed their collective output fell by more than 751,000 barrels a day in the month. The West Texas Intermediate is approximately 3% higher than the previous week.
- Tesla shares dropped as much as 9% during Friday trading, as CEO Elon Musk called for 7% job cuts, citing price competition as a headwind for future growth.
- In other economic news, unemployment came in at 3.9%in December, and wages rose a solid 3.2% last year, all while the Federal Reserve’s preferred gauge of inflation, after removing food and energy, rose 1.9% as of November over the prior year.
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Disclosure: Past performance is not necessarily indicative of future results.