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Wall Street put up a feeble show last week (though still in the green territory) with the S&P 500, the Dow Jones and the Nasdaq Composite adding about 0.64%, 1.8% and 0.08%, respectively.
Decent jobs and manufacturing data as well as vaccine hopes have probably kept investors’ confidence level high. But uncertainty about the proper execution of Trump’s stimulus executive order and a weaker-than-expected increase in retail sales checked the surge in indexes.
Still, we can see that market laggards are lately emerging as leaders. Against this backdrop, below we highlight a few leveraged ETF winners of last week (read: ETF Laggards are Emerging Leaders: Here's Why).
Late last week, the Bank of Mexico cut rates by 50 basis points to 4.50% — the lowest in four years. Mexico's peso strengthened in recent sessions on signs that the pace of further monetary policy easing could slow down. This could be an indication of better economic strength. Oil price recovery is also another cause of upbeat sentiments over Mexican stocks. Mexican oil output is among the top-ranked globally.
Treasury yields ticked up last week as data showed the weekly jobless claims dipped below one million for the first time since March. This, in turn, kept prices for U.S. treasuries low and boosted inverse leveraged Treasury ETFs like TMV.
The Dow Jones Transportation Average spurted to a five-month high in recent weeks as the COVID-19 curve flattened across the South and Southwest states. Package delivery services company United Parcel Service Inc. (UPS) has been hovering close to an all-time high. Traveling has also increased materially with TSA checkpoint travel numbers reporting more than 700,000 travelers on several days in the past month, which is way higher than the minimum of 87534 recorded in mid-April.
Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBL - Free Report) – Up 10.8%
Wall Street got charged up on vaccine and further stimulus hopes as well as better-than-feared second-quarter earnings. On the virus front, fears are subsiding. Virus-related hospitalizations in Texas dropped to the lowest level on Aug 12 since early July. So, the benchmark index S&P 500 hovered around the record close. As a result, high-beta products gained last week.
Gold prices skidded recently on profit booking and so did gold miners. Though the fundamentals are still upbeat for miners, stretched valuation probably led gold-related investments to backtrack last week. This is why this inverse gold mining ETF shed gains last week.
Apart from Boeing (BA), the U.S. aerospace & defenselooks well positioned.Companies like Lockheed Martin, Raytheon Technologies, General Dynamics and Northrop Grumman have performed better than expected in the latest earnings season. No wonder, the space has been steady amid the coronavirus-induced slowdown.
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6 Top-Performing Leveraged ETFs of Last Week
Wall Street put up a feeble show last week (though still in the green territory) with the S&P 500, the Dow Jones and the Nasdaq Composite adding about 0.64%, 1.8% and 0.08%, respectively.
Decent jobs and manufacturing data as well as vaccine hopes have probably kept investors’ confidence level high. But uncertainty about the proper execution of Trump’s stimulus executive order and a weaker-than-expected increase in retail sales checked the surge in indexes.
Still, we can see that market laggards are lately emerging as leaders. Against this backdrop, below we highlight a few leveraged ETF winners of last week (read: ETF Laggards are Emerging Leaders: Here's Why).
Direxion Daily MSCI Mexico Bull 3X Shares (MEXX - Free Report) – Up 14.1%
Late last week, the Bank of Mexico cut rates by 50 basis points to 4.50% — the lowest in four years. Mexico's peso strengthened in recent sessions on signs that the pace of further monetary policy easing could slow down. This could be an indication of better economic strength. Oil price recovery is also another cause of upbeat sentiments over Mexican stocks. Mexican oil output is among the top-ranked globally.
Direxion Daily 20-Year Treasury Bear 3X (TMV - Free Report) – Up 12.7%
Treasury yields ticked up last week as data showed the weekly jobless claims dipped below one million for the first time since March. This, in turn, kept prices for U.S. treasuries low and boosted inverse leveraged Treasury ETFs like TMV.
Direxion Daily Transportation Bull 3X Shares (TPOR - Free Report) ) – Up 11.1%
The Dow Jones Transportation Average spurted to a five-month high in recent weeks as the COVID-19 curve flattened across the South and Southwest states. Package delivery services company United Parcel Service Inc. (UPS) has been hovering close to an all-time high. Traveling has also increased materially with TSA checkpoint travel numbers reporting more than 700,000 travelers on several days in the past month, which is way higher than the minimum of 87534 recorded in mid-April.
Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBL - Free Report) – Up 10.8%
Wall Street got charged up on vaccine and further stimulus hopes as well as better-than-feared second-quarter earnings. On the virus front, fears are subsiding. Virus-related hospitalizations in Texas dropped to the lowest level on Aug 12 since early July. So, the benchmark index S&P 500 hovered around the record close. As a result, high-beta products gained last week.
Direxion Daily Gold Miners Bear 2X Shares (DUST - Free Report) – Up 10.1%
Gold prices skidded recently on profit booking and so did gold miners. Though the fundamentals are still upbeat for miners, stretched valuation probably led gold-related investments to backtrack last week. This is why this inverse gold mining ETF shed gains last week.
Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN - Free Report) – Up 10%
Apart from Boeing (BA), the U.S. aerospace & defenselooks well positioned.Companies like Lockheed Martin, Raytheon Technologies, General Dynamics and Northrop Grumman have performed better than expected in the latest earnings season. No wonder, the space has been steady amid the coronavirus-induced slowdown.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>