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Wall Street was upbeat last week, with all key U.S. equity gauges, including the S&P 500 (up 4%), the Dow Jones (up 5.7%), the Nasdaq (up 2.2%) and the Russell 2000 (up 6%), gaining substantially. Notably, the Dow Jones recorded the fourth successive week of gains. The 30-stock index marked its best performance since May. It’s also on track for its best month since January 1976, per CNBC.
However, tech shares again failed to score big gains last week as investors dumped technology shares following weak results and outlooks from Microsoft, Alphabet and Meta and rotated into economically sensitive stocks that will benefit if the U.S. economy can avoid a recession. Apple was the lone star in the big tech batch. There is also hope that the Fed may stop its 75-bps rate hike trail in December.
The earnings picture so far this season has been decent, with inflation data not going out of control. For the 170 S&P 500 members that have reported Q3 results already, total earnings are down 3.2% from the same period last year on 9.7% higher revenues, with 76.5% beating EPS estimates and 67.6% beating revenue estimates, per the Zacks Earnings Trends issued on Oct 26, 2022.
Plus, the core personal consumption expenditures price index in September increased 0.5% from the previous month and 5.1% from a year ago, still high but mostly in line with expectations. This is the preferred gauge of inflation for the Federal Reserve. Personal spending rose 0.6%, more than expected, the data showed. This has probably helped the U.S. equity market.
The week started with the benchmark U.S. treasury yield being 4.25%, hit a weekly low of 3.96% and ended the week at 4.02%. Against this backdrop, we highlight a few ETF areas that won last week.
ETF Areas in Focus
Carbon Allowance
Kraneshares European Carbon Allowance ETF (KEUA - Free Report) – Up 20.4%
iPath Series B Carbon ETN (GRN - Free Report) – Up 18.5%
Kfa Global Carbon ETF (KRBN) – Up 13.5%
Investors’ inclination toward green energy has boosted this space. This year, the California Carbon Market stood out as regulators have committed to aggressive emissions reduction targets that will subdue the supply of credits in the region, per a source.
Mortgage Real Estate
Mortgage Real Estate iShares ETF (REM - Free Report) – Up 11.2%
Vaneck Mortgage REIT Income ETF (MORT) – Up 11.2%
As rates dived last week, mortgage real estate stocks surged as the sector is rate-sensitive. Mortgage real estate stocks perform better in a low-rate environment.
Cryptos bounced back sharply last week as rates fell and the dollar weakened, per Edward Moya, senior market analyst for the Americas at OANDA, as quoted on WSJ. Bitcoin mining companies, including Core Scientific, Marathon Digital and Riot Blockchain, recorded considerable gains.
The underlying NASDAQ U.S. Broad Dividend Achievers Index comprises U.S.-accepted securities with at least 10 consecutive years of increasing annual regular dividend payments. Such an investment objective calls for quality exposure.
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4 ETF Areas Up At Least 10% Last Week
Wall Street was upbeat last week, with all key U.S. equity gauges, including the S&P 500 (up 4%), the Dow Jones (up 5.7%), the Nasdaq (up 2.2%) and the Russell 2000 (up 6%), gaining substantially. Notably, the Dow Jones recorded the fourth successive week of gains. The 30-stock index marked its best performance since May. It’s also on track for its best month since January 1976, per CNBC.
However, tech shares again failed to score big gains last week as investors dumped technology shares following weak results and outlooks from Microsoft, Alphabet and Meta and rotated into economically sensitive stocks that will benefit if the U.S. economy can avoid a recession. Apple was the lone star in the big tech batch. There is also hope that the Fed may stop its 75-bps rate hike trail in December.
The earnings picture so far this season has been decent, with inflation data not going out of control. For the 170 S&P 500 members that have reported Q3 results already, total earnings are down 3.2% from the same period last year on 9.7% higher revenues, with 76.5% beating EPS estimates and 67.6% beating revenue estimates, per the Zacks Earnings Trends issued on Oct 26, 2022.
Plus, the core personal consumption expenditures price index in September increased 0.5% from the previous month and 5.1% from a year ago, still high but mostly in line with expectations. This is the preferred gauge of inflation for the Federal Reserve. Personal spending rose 0.6%, more than expected, the data showed. This has probably helped the U.S. equity market.
The week started with the benchmark U.S. treasury yield being 4.25%, hit a weekly low of 3.96% and ended the week at 4.02%. Against this backdrop, we highlight a few ETF areas that won last week.
ETF Areas in Focus
Carbon Allowance
Kraneshares European Carbon Allowance ETF (KEUA - Free Report) – Up 20.4%
iPath Series B Carbon ETN (GRN - Free Report) – Up 18.5%
Kfa Global Carbon ETF (KRBN) – Up 13.5%
Investors’ inclination toward green energy has boosted this space. This year, the California Carbon Market stood out as regulators have committed to aggressive emissions reduction targets that will subdue the supply of credits in the region, per a source.
Mortgage Real Estate
Mortgage Real Estate iShares ETF (REM - Free Report) – Up 11.2%
Vaneck Mortgage REIT Income ETF (MORT) – Up 11.2%
As rates dived last week, mortgage real estate stocks surged as the sector is rate-sensitive. Mortgage real estate stocks perform better in a low-rate environment.
Blockchain & Bitcoin Miners
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) – Up 11.2%
Global X Blockchain ETF (BKCH - Free Report) – Up 10.7%
Vaneck Digital Assets Mining ETF (DAM) – Up 10.3%
Cryptos bounced back sharply last week as rates fell and the dollar weakened, per Edward Moya, senior market analyst for the Americas at OANDA, as quoted on WSJ. Bitcoin mining companies, including Core Scientific, Marathon Digital and Riot Blockchain, recorded considerable gains.
Dividend
Listed Funds Dividend Performers ETF (IPDP - Free Report) – Up 10.9%
The underlying NASDAQ U.S. Broad Dividend Achievers Index comprises U.S.-accepted securities with at least 10 consecutive years of increasing annual regular dividend payments. Such an investment objective calls for quality exposure.