US stocks ended the week at a new record high on optimism over vaccines for COVID-19 and the potential for additional stimulus due to Democrats controlling congress and weaker job numbers. The S&P 500 gained 1.8% and the Dow rose 1.6% for the week. Abroad, the FTSE All World Ex US was up 1.9% for the week. The yield on the 10-year Treasury surged over the week to reach its highest level since March. It ended the week at 1.13% up from 0.93%.
The December jobs reports showed that COVID-19 is weighing on the job market as the US lost 140,000 jobs in December. The unemployment rate held steady at 6.7%.
Factories in the US, Asia, and Europe increased their output in December pointing to a strong manufacturing sector. US manufacturing activity hit its highest level in two years.
US auto sales ended the year on a strong note.
Saudi Arabia announced it would cut oil production by 1 million barrels a month starting next month as it’s grown concerned over a resurgent coronavirus.
Weekly jobless claims edged down slightly to 787,000 over the past week.