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Wall Street was upbeat last week with the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 adding about 3.3%, 2.9%, 3.1% and 4.9%, respectively. In fact, the S&P 500 had a fourth straight week of gains, the longest such rally since November.
Among the important data points, inflation data was notable. Inflation in the United States moderated slightly as energy and gasoline prices dropped. This is especially true as the consumer price index (“CPI”) jumped 8.5% year over year in July, down from a 9.1% year-over-year increase in June, which was the fastest increase since November 1981.
The so-called core inflation, which strips out volatile components such as food and energy prices, rose 5.9% from the year-ago level, in line with June’s gain. Inflation is still near its highest level in four decades and food prices are at the highest annual rate since 1979 (read: Inflation Cools But Food Prices Up Since 1979: ETFs in Focus).
The University of Michigan's preliminary August reading on the overall index on consumer sentiment came in at 55.1, up from 51.5 in the prior month. It had hit a record low of 50 in June. American households' near-term outlook for inflation eased again due to falling gasoline prices, a survey released on Friday showed.
"All components of the expectations index improved this month, particularly among low- and middle-income consumers for whom inflation is particularly salient," survey director Joanne Hsu said in a statement, as published on Reuters.
Against this backdrop, below we highlight a few inverse/leveraged ETF areas that topped last week.
ETFs in Focus
Energy
Microsectors U.S. Big Oil Index 3X ETN (NRGU - Free Report) – Up 28.3%
Microsectors Oil & Gas Exp. & Prod. 3X Leveraged (OILU - Free Report) – Up 25.3%
Ultra Bloomberg Natural Gas ETF(BOIL) – Up 18.7%
Oil and energy prices gained last week as recessionary fears eased a bit amid cooling inflation and upbeat jobs data. IEA raised its forecast for demand growth, to 2.1 million bpd, due to gas-to-oil switching in power generation as a result of surging gas prices.
Mexico's economy expanded 1% sequentially in Q2, beating forecasts and marking the third successive quarter of growth. A Reuters poll of analysts expected GDP to grow 0.8% in seasonally-adjusted terms in the second quarter. Analysts at Capital Economics revised up their 2022 growth forecast for Mexicoby 0.5 percentage points to 2.3% following the data.
Microsectors 3X U.S. Big Banks ETN (BNKU) – Up 16.7%
On reports of easing inflation, benchmark treasury yields jumped as recessionary fears eased. Short-term treasury yields also showed a dip on hopes of slower Fed rate hikes. This has steepened the yield curve and increased the net interest rate margin and benefitted financial ETFs.
Small-caps stocks staged solid gains amid the bull market rally as investors’ risk appetite increased. As equities climbed, Wall Street’s fear gauge crumbled. Most of the U.S. economic data points have come in decent in recent weeks, making the case for small-cap investing stronger. This is especially true given small-caps mostly have domestic exposure.
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Best Inverse/Leveraged ETF Areas of Last Week
Wall Street was upbeat last week with the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 adding about 3.3%, 2.9%, 3.1% and 4.9%, respectively. In fact, the S&P 500 had a fourth straight week of gains, the longest such rally since November.
Among the important data points, inflation data was notable. Inflation in the United States moderated slightly as energy and gasoline prices dropped. This is especially true as the consumer price index (“CPI”) jumped 8.5% year over year in July, down from a 9.1% year-over-year increase in June, which was the fastest increase since November 1981.
The so-called core inflation, which strips out volatile components such as food and energy prices, rose 5.9% from the year-ago level, in line with June’s gain. Inflation is still near its highest level in four decades and food prices are at the highest annual rate since 1979 (read: Inflation Cools But Food Prices Up Since 1979: ETFs in Focus).
The University of Michigan's preliminary August reading on the overall index on consumer sentiment came in at 55.1, up from 51.5 in the prior month. It had hit a record low of 50 in June. American households' near-term outlook for inflation eased again due to falling gasoline prices, a survey released on Friday showed.
"All components of the expectations index improved this month, particularly among low- and middle-income consumers for whom inflation is particularly salient," survey director Joanne Hsu said in a statement, as published on Reuters.
Against this backdrop, below we highlight a few inverse/leveraged ETF areas that topped last week.
ETFs in Focus
Energy
Microsectors U.S. Big Oil Index 3X ETN (NRGU - Free Report) – Up 28.3%
Microsectors Oil & Gas Exp. & Prod. 3X Leveraged (OILU - Free Report) – Up 25.3%
Ultra Bloomberg Natural Gas ETF(BOIL) – Up 18.7%
Oil and energy prices gained last week as recessionary fears eased a bit amid cooling inflation and upbeat jobs data. IEA raised its forecast for demand growth, to 2.1 million bpd, due to gas-to-oil switching in power generation as a result of surging gas prices.
Mexico
MSCI Mexico Bull 3X Direxion (MEXX - Free Report) – Up 22.4%
Mexico's economy expanded 1% sequentially in Q2, beating forecasts and marking the third successive quarter of growth. A Reuters poll of analysts expected GDP to grow 0.8% in seasonally-adjusted terms in the second quarter. Analysts at Capital Economics revised up their 2022 growth forecast for Mexicoby 0.5 percentage points to 2.3% following the data.
Retail
Retail Bull 3X Direxion (RETL - Free Report) – Up 20.1%
As consumer sentiments grew in August, retail sales had a reason to rise.
Financials
Regional Banks Bull 3X Direxion (DPST - Free Report) –Up 17.1%
Financial Bull 3X Direxion (FAS) – Up 16.7%
Microsectors 3X U.S. Big Banks ETN (BNKU) – Up 16.7%
On reports of easing inflation, benchmark treasury yields jumped as recessionary fears eased. Short-term treasury yields also showed a dip on hopes of slower Fed rate hikes. This has steepened the yield curve and increased the net interest rate margin and benefitted financial ETFs.
Small-Caps
Smallcap Bull 3X Direxion (TNA - Free Report) – Up 15.1%
Small-caps stocks staged solid gains amid the bull market rally as investors’ risk appetite increased. As equities climbed, Wall Street’s fear gauge crumbled. Most of the U.S. economic data points have come in decent in recent weeks, making the case for small-cap investing stronger. This is especially true given small-caps mostly have domestic exposure.