We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
After a very disappointing January, stocks impressive run on bourses seems encouraging. The Dow Jones Industrial Average rose 0.8% on Feb 1, as stocks were observed to gain for the third day. The other two broad market indices, the S&P 500 and the Nasdaq Composite, were also up around 0.7% each on the same day. After gaining 3% and 3.4% on Jan 28 and Jan 31, the tech-heavy index in the correction territory gained again yesterday.
The upside in Wall Street was observed even as the benchmark 10-year Treasury yield was up by 2 basis points (bps) and again crossed 1.8% during the trading session. As reflected by U.S. manufacturing data for January, increasing inflation levels largely led to the upside in the benchmark yields. Consequently, bank stocks gained on Feb 1 as Goldman Sachs (GS - Free Report) and JPMorgan Chase (JPM - Free Report) rose 2.6% and 1.7%, respectively. Wells Fargo also climbed more than 3.3% on the same day.
Major tech players like Netflix (NFLX - Free Report) and Meta Platforms also showed strength by gaining 7% and 1.8%, respectively, on Feb 1. Google-parent company, Alphabet (GOOGL - Free Report) , also rose 1.7% on the same day.
The strength in the fourth-quarter earnings results can be applauded for the optimism in the market. Going by FactSet, 78.5% of the S&P 500 companies that have reported earnings results beat bottom-line estimations as of Feb 1 morning (per a CNBC article). In this regard, Jeff Kilburg, chief investment officer of Sanctuary Wealth, commented that “After being wildly distracted in the month of January, investors and traders are finally refocusing on earnings season. Seeing some of these beats and improved forward guidance has created a lot of optimism inside of this earnings season, which we kind of neglected due to the fact that the Federal Reserve took the center stage,” as mentioned in a CNBC article.
ETFs to Ride the Wave
Investors who seek to capitalize on the strong trends should consider the following ETFs:
SPDR S&P 500 ETF Trust seeks to provide investment results that before expenses generally correspond to the price and the yield performance of the S&P 500 Index.
SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report)
SPDR Dow Jones Industrial Average ETF Trust seeks to provide investment results that before expenses generally correspond to the price and the yield performance of the Dow Jones Industrial Average.
SPDR Dow Jones Industrial Average ETF Trust charges an expense ratio of 0.16%, with AUM of $29.20 billion.
iShares MSCI USA Momentum Factor ETF provides exposure to large and mid-cap stocks that exhibit relatively higher price momentum by tracking the MSCI USA Momentum SR Variant Index.
iShares MSCI USA Momentum Factor ETF charges 15 bps in fees per year along with AUM of $12.15 billion.
Fidelity Nasdaq Composite Index ETF seeks to provide investment returns that closely correspond to the price and yield performance of the Nasdaq Composite Index.
Fidelity Nasdaq Composite Index ETF has AUM of $4.28 billion and the expense ratio comes in at 0.21% (read: Guide to the Nasdaq ETF Investing).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
ETFs to Join Wall Street's Latest Rebound Rally
After a very disappointing January, stocks impressive run on bourses seems encouraging. The Dow Jones Industrial Average rose 0.8% on Feb 1, as stocks were observed to gain for the third day. The other two broad market indices, the S&P 500 and the Nasdaq Composite, were also up around 0.7% each on the same day. After gaining 3% and 3.4% on Jan 28 and Jan 31, the tech-heavy index in the correction territory gained again yesterday.
The upside in Wall Street was observed even as the benchmark 10-year Treasury yield was up by 2 basis points (bps) and again crossed 1.8% during the trading session. As reflected by U.S. manufacturing data for January, increasing inflation levels largely led to the upside in the benchmark yields. Consequently, bank stocks gained on Feb 1 as Goldman Sachs (GS - Free Report) and JPMorgan Chase (JPM - Free Report) rose 2.6% and 1.7%, respectively. Wells Fargo also climbed more than 3.3% on the same day.
Major tech players like Netflix (NFLX - Free Report) and Meta Platforms also showed strength by gaining 7% and 1.8%, respectively, on Feb 1. Google-parent company, Alphabet (GOOGL - Free Report) , also rose 1.7% on the same day.
The strength in the fourth-quarter earnings results can be applauded for the optimism in the market. Going by FactSet, 78.5% of the S&P 500 companies that have reported earnings results beat bottom-line estimations as of Feb 1 morning (per a CNBC article). In this regard, Jeff Kilburg, chief investment officer of Sanctuary Wealth, commented that “After being wildly distracted in the month of January, investors and traders are finally refocusing on earnings season. Seeing some of these beats and improved forward guidance has created a lot of optimism inside of this earnings season, which we kind of neglected due to the fact that the Federal Reserve took the center stage,” as mentioned in a CNBC article.
ETFs to Ride the Wave
Investors who seek to capitalize on the strong trends should consider the following ETFs:
SPDR S&P 500 ETF Trust (SPY - Free Report)
SPDR S&P 500 ETF Trust seeks to provide investment results that before expenses generally correspond to the price and the yield performance of the S&P 500 Index.
SPDR S&P 500 ETF Trust has a total expense ratio of 0.09%, with AUM of $403.69 billion (read: 5 Stocks in S&P 500 ETF That Gained Double Digits in January).
iShares Core S&P 500 ETF (IVV - Free Report)
iShares Core S&P 500 ETF seeks to track the investment results of an index composed of large-capitalization U.S. equities.
iShares Core S&P 500 ETF has AUM of $304 billion and total expense ratio is 0.03% (read: Warren Buffett Wins in 2022: ETF Lessons to Learn From).
SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report)
SPDR Dow Jones Industrial Average ETF Trust seeks to provide investment results that before expenses generally correspond to the price and the yield performance of the Dow Jones Industrial Average.
SPDR Dow Jones Industrial Average ETF Trust charges an expense ratio of 0.16%, with AUM of $29.20 billion.
iShares MSCI USA Momentum Factor ETF (MTUM - Free Report)
iShares MSCI USA Momentum Factor ETF provides exposure to large and mid-cap stocks that exhibit relatively higher price momentum by tracking the MSCI USA Momentum SR Variant Index.
iShares MSCI USA Momentum Factor ETF charges 15 bps in fees per year along with AUM of $12.15 billion.
Invesco QQQ (QQQ - Free Report)
Invesco QQQ provides exposure to the largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq-100 Index.
Invesco QQQ has AUM of $180.36 billion and charges investors 20 bps in annual fees.
Fidelity Nasdaq Composite Index ETF (ONEQ - Free Report)
Fidelity Nasdaq Composite Index ETF seeks to provide investment returns that closely correspond to the price and yield performance of the Nasdaq Composite Index.
Fidelity Nasdaq Composite Index ETF has AUM of $4.28 billion and the expense ratio comes in at 0.21% (read: Guide to the Nasdaq ETF Investing).