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.
Biogen Inc. (
BIIB Quick Quote 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 Quick Quote LABU - Free Report) – Up 21.7% Pharmaceutical & Medical Bull 3X Direxion( PILL Quick Quote PILL - Free Report) – Up 14.5% Ultra Nasdaq Biotech Proshares( BIB Quick Quote 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 Quick Quote CLDL - Free Report) – Up 10.6% Simplify Volt Cloud and Cybersecurity Disruption ( VCLO Quick Quote VCLO - Free Report) – Up 9.6% Proshares Ultra Nasdaq Cloud Computing ETF ( SKYU Quick Quote 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 Quick Quote 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 Quick Quote 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 Quick Quote RETL - Free Report) – Up 7.6% Want key ETF info delivered straight to your inbox?
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