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Wall Street was modestly upbeat last week. The S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 added 2.5%, 1.8%, 4.32% and 2.4% last week, respectively. The U.S. benchmark treasury yields were modest on most days last week. The week started with a 3.52% yield and ended at that level only while hitting a weekly low of 3.46%. The decline in the U.S. treasury yields triggered the stock market rally.
Last week witnessed the release of fourth-quarter U.S. GDP data and earnings of some big companies. The American economy expanded faster than expected in the fourth quarter, with GDP rising 2.9% annually versus a 2.6% expectation. Though the economy has been resilient, the pace of momentum has slowed in recent months due to stubborn inflation, rising interest rates and battered financial markets. The GDP growth marks a slowdown from the 3.2% advancement in the third quarter.
Moreover, the release of better-than-expected Consumer Sentiment and some Home Sales data boosted investors’ confidence. New Home Sales report showed that New Home Sales had unexpectedly increased by 2.3% in December. Pending Home Sales in December grew by 2.5% sequentially versus analyst expectation of -0.9%. The Michigan Consumer Sentiment report for January improved from 59.7 in December to 64.9 in January, compared to analyst consensus of 64.6.
Earnings releases were mixed in nature. Tesla beat overall while Intel shares plunged on earnings miss and weak guidance. Chevron came up with mixed earnings but boosted its dividends and announced a new buyback plan. Microsoft shares fell after reporting weak sales and cloud business. Against this backdrop, below we highlight a few winning ETFs of the last week.
ETFs in Focus
Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report) – Up 19.8%
Tesla, which erased 65% of its value in 2022 for its worst year on record, rallied 11% on Friday due to strong earnings. Tesla Motors (TSLA - Free Report) reported record-breaking Q4 results, wherein it beat both earnings and revenue estimates. The company posted record quarterly revenues, operating income and net income in its history (read: ETFs to Buy on Tesla's Record-Breaking Q4 Results).
In 2022, the electric carmaker delivered a record 1.31 million electric vehicles, up 40% from 2021. It has ramped up production after opening new factories in Texas, Shanghai and Berlin. If this was not enough, Lucid Group (LCID - Free Report) , another electric vehicle maker, known for its mega SPAC merger in 2021, surged on Friday on talks that Saudi Arabia's Public Investment Fund is working on plans to buy the remaining stake that it doesn’t own, as quoted on investing.com. In any case, electric vehicle ETFs have been delivering upbeat performances this year.
Ark Next Generation Internet ETF (ARKW - Free Report) – Up 11.3%
Ark Investments’ ETFs have been offering blowout performances lately thanks to the uptake in its core holdings like Tesla, cryptocurrency and internet stocks. The comeback of technology shares in 2023 has been aiding Ark Investments’ ETFs like ARKW. Beaten-down names including Tesla and Coinbase (COIN) were each up more than 10% on Friday. The company’s other ETFs including Ark Fintech Innovation ETF (ARKF - Free Report) and Ark Innovation ETF (ARKK) also added 11% and 10.6%, respectively last week. Reuters noted that ARKK is on course of logging its best monthly gain on record, as quoted on Yahoo Finance.
Bitcoin has been in solid shape amid optimism that it may have bottomed. Talks that inflation has peaked and will exhibit a downtrend in 2023 are doing rounds. This has bolstered risk-on trade sentiments and favored the beaten-down asset cryptocurrency.
The underlying SoFi Social 50 Index tracks the performance of a portfolio of the 50 most widely held U.S. listed equity securities in self-directed brokerage accounts. Apple (7.56%), Amazon (7.22%) and Tesla (6.97%) are the top three holdings of the fund. The rally in the broader market and tech shares contributed to the rally in this specific fund.
iPatha.B Coffee Subindex TR ETN – Up 9.4%
Arabica coffee futures rebounded to their highest level in over three weeks, mainly due to worries over rising yields, per tradingeconomics. The world will face coffee shortages for an “unprecedented” third year in a row due to lower-than-expected harvest from top grower Brazil, according to coffee trader Volcafe, as quoted on Economic Times.
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Top-Performing ETFs of Last Week
Wall Street was modestly upbeat last week. The S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 added 2.5%, 1.8%, 4.32% and 2.4% last week, respectively. The U.S. benchmark treasury yields were modest on most days last week. The week started with a 3.52% yield and ended at that level only while hitting a weekly low of 3.46%. The decline in the U.S. treasury yields triggered the stock market rally.
Last week witnessed the release of fourth-quarter U.S. GDP data and earnings of some big companies. The American economy expanded faster than expected in the fourth quarter, with GDP rising 2.9% annually versus a 2.6% expectation. Though the economy has been resilient, the pace of momentum has slowed in recent months due to stubborn inflation, rising interest rates and battered financial markets. The GDP growth marks a slowdown from the 3.2% advancement in the third quarter.
Moreover, the release of better-than-expected Consumer Sentiment and some Home Sales data boosted investors’ confidence. New Home Sales report showed that New Home Sales had unexpectedly increased by 2.3% in December. Pending Home Sales in December grew by 2.5% sequentially versus analyst expectation of -0.9%. The Michigan Consumer Sentiment report for January improved from 59.7 in December to 64.9 in January, compared to analyst consensus of 64.6.
Earnings releases were mixed in nature. Tesla beat overall while Intel shares plunged on earnings miss and weak guidance. Chevron came up with mixed earnings but boosted its dividends and announced a new buyback plan. Microsoft shares fell after reporting weak sales and cloud business. Against this backdrop, below we highlight a few winning ETFs of the last week.
ETFs in Focus
Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report) – Up 19.8%
Tesla, which erased 65% of its value in 2022 for its worst year on record, rallied 11% on Friday due to strong earnings. Tesla Motors (TSLA - Free Report) reported record-breaking Q4 results, wherein it beat both earnings and revenue estimates. The company posted record quarterly revenues, operating income and net income in its history (read: ETFs to Buy on Tesla's Record-Breaking Q4 Results).
In 2022, the electric carmaker delivered a record 1.31 million electric vehicles, up 40% from 2021. It has ramped up production after opening new factories in Texas, Shanghai and Berlin. If this was not enough, Lucid Group (LCID - Free Report) , another electric vehicle maker, known for its mega SPAC merger in 2021, surged on Friday on talks that Saudi Arabia's Public Investment Fund is working on plans to buy the remaining stake that it doesn’t own, as quoted on investing.com. In any case, electric vehicle ETFs have been delivering upbeat performances this year.
Ark Next Generation Internet ETF (ARKW - Free Report) – Up 11.3%
Ark Investments’ ETFs have been offering blowout performances lately thanks to the uptake in its core holdings like Tesla, cryptocurrency and internet stocks. The comeback of technology shares in 2023 has been aiding Ark Investments’ ETFs like ARKW. Beaten-down names including Tesla and Coinbase (COIN) were each up more than 10% on Friday. The company’s other ETFs including Ark Fintech Innovation ETF (ARKF - Free Report) and Ark Innovation ETF (ARKK) also added 11% and 10.6%, respectively last week. Reuters noted that ARKK is on course of logging its best monthly gain on record, as quoted on Yahoo Finance.
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) – Up 10.7%
Bitcoin has been in solid shape amid optimism that it may have bottomed. Talks that inflation has peaked and will exhibit a downtrend in 2023 are doing rounds. This has bolstered risk-on trade sentiments and favored the beaten-down asset cryptocurrency.
Sofi 50 ETF (SFYF - Free Report) – Up 9.6%
The underlying SoFi Social 50 Index tracks the performance of a portfolio of the 50 most widely held U.S. listed equity securities in self-directed brokerage accounts. Apple (7.56%), Amazon (7.22%) and Tesla (6.97%) are the top three holdings of the fund. The rally in the broader market and tech shares contributed to the rally in this specific fund.
iPatha.B Coffee Subindex TR ETN – Up 9.4%
Arabica coffee futures rebounded to their highest level in over three weeks, mainly due to worries over rising yields, per tradingeconomics. The world will face coffee shortages for an “unprecedented” third year in a row due to lower-than-expected harvest from top grower Brazil, according to coffee trader Volcafe, as quoted on Economic Times.