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Wall Street was in a moderate position last week.Inflation data was robust, but the benchmark U.S. treasury yield dropped to 1.47% on Jun 11, 2021 from 1.57% recorded on Jun 7, 2021. This helped equities, especially the growth ones, to surge. The S&P 500, the Dow Jones and the Nasdaq Composite added about 0.4%, 0.3% and 1.9% last week.
Against this backdrop, below we highlight a few leveraged ETF areas that won last week.
Medical
Biogen Inc. (BIIB - Free Report) was a star performer in Monday’s trading session, as the stock rallied as much as 64% to a record high causing a brief halt. The stock was up 38% at the close, touching its highest level in over six years and adding more than $16 billion in its market value last week. The massive gain for the biotech firm was followed by the approval of the much-awaited drug to treat Alzheimer's disease in nearly 20 years by the FDA. The move has benefited the biotech and pharma ETFs (read: Biotech ETFs Surge on Biogen's Alzheimer Drug Approval).
Pharmaceutical & Medical Bull 3X Direxion(PILL - Free Report) – Up 14.5%
Ultra Nasdaq Biotech Proshares(BIB - Free Report) – Up 11.85%
Cloud Computing
Cloud computing and storage have given a boost to video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. In the wake of the pandemic, cloud technology adoption has seen robust growth in sectors where the work-from-home initiatives helped sustain business functions. Globally, end-user spending on public cloud services is forecast to grow 18.4% in 2021 to a total of $304.9 billion, according to Gartner (read: ETF Areas Thriving During Coronavirus Pandemic).
Mexico president Obrador is losing popularity, per a barrons.com article. Export income is also rising with higher oil prices. “The U.S. pandemic recovery helps poorer Mexicans through remittances, which run about 4% of gross domestic product, and richer ones who cross the border for Covid-19 vaccinations. Real inoculation rates are probably higher than the official figure of 11%,” the barrons.com article noted.
The segment is probably benefiting from the back-to-school season. According to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment, U.S. retail sales are expected to increase 5.5% excluding automotive and gas during the back-to-school period compared to 2020. Compared to 2019, sales are expected to jump 6.7%.
Image: Bigstock
5 Best Leveraged ETFs of Last Week
Wall Street was in a moderate position last week.Inflation data was robust, but the benchmark U.S. treasury yield dropped to 1.47% on Jun 11, 2021 from 1.57% recorded on Jun 7, 2021. This helped equities, especially the growth ones, to surge. The S&P 500, the Dow Jones and the Nasdaq Composite added about 0.4%, 0.3% and 1.9% last week.
Against this backdrop, below we highlight a few leveraged ETF areas that won last week.
Medical
Biogen Inc. (BIIB - Free Report) was a star performer in Monday’s trading session, as the stock rallied as much as 64% to a record high causing a brief halt. The stock was up 38% at the close, touching its highest level in over six years and adding more than $16 billion in its market value last week. The massive gain for the biotech firm was followed by the approval of the much-awaited drug to treat Alzheimer's disease in nearly 20 years by the FDA. The move has benefited the biotech and pharma ETFs (read: Biotech ETFs Surge on Biogen's Alzheimer Drug Approval).
S&P Biotech Bull 3X Direxion(LABU - Free Report) – Up 21.7%
Pharmaceutical & Medical Bull 3X Direxion(PILL - Free Report) – Up 14.5%
Ultra Nasdaq Biotech Proshares(BIB - Free Report) – Up 11.85%
Cloud Computing
Cloud computing and storage have given a boost to video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. In the wake of the pandemic, cloud technology adoption has seen robust growth in sectors where the work-from-home initiatives helped sustain business functions. Globally, end-user spending on public cloud services is forecast to grow 18.4% in 2021 to a total of $304.9 billion, according to Gartner (read: ETF Areas Thriving During Coronavirus Pandemic).
Direxion Daily Cloud Computing Bull 2X Shares (CLDL - Free Report) – Up 10.6%
Simplify Volt Cloud and Cybersecurity Disruption – Up 9.6%
Proshares Ultra Nasdaq Cloud Computing ETF (SKYU - Free Report) – Up 9.3%
Internet
Tech stocks, mainly the Internet ones, have been in fine fettle. Earnings growth potential for the same has also been upbeat for the space.
DJ Internet Bull 3X Direxion (WEBL - Free Report) – Up 8.7%
Mexico
Mexico president Obrador is losing popularity, per a barrons.com article. Export income is also rising with higher oil prices. “The U.S. pandemic recovery helps poorer Mexicans through remittances, which run about 4% of gross domestic product, and richer ones who cross the border for Covid-19 vaccinations. Real inoculation rates are probably higher than the official figure of 11%,” the barrons.com article noted.
MSCI Mexico Bull 3X Direxion (MEXX - Free Report) – Up 7.8%
Retail
The segment is probably benefiting from the back-to-school season. According to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment, U.S. retail sales are expected to increase 5.5% excluding automotive and gas during the back-to-school period compared to 2020. Compared to 2019, sales are expected to jump 6.7%.
Retail Bull 3X Direxion (RETL - Free Report) – Up 7.6%
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