U.S. stocks rallied on Friday, helping the week to end on a big note as bond yields backtracked slightly from their recent march high. The S&P 500 (up 1.9%), the Dow Jones (up 1.8%), the Nasdaq Composite (up 2.6%) and the Russell 2000 (up 2.0%) – all gained last week. In fact, the S&P 500 logged the best week since January.
The Dow Jones snapped four-week losing streak as the yield on benchmark 10-year Treasury note dipped below the 4%-mark. Several times last week the 10-year rate rose above that point, leading stocks to nosedive. Now it all depends on the release of U.S. economic datapoints. The ISM Manufacturing PMI inched up to 47.7 in February 2023 from 47.4 in January (which was the lowest since May 2020),
The data fell shy of expectations of 48. The reading hints at a fourth successive month of declining factory activity. A downbeat ISM data probably have cooled down higher probability of steeper rise in rates (read:
3 Sector ETFs Looking Decent Despite Soft Manufacturing Data).
Market sentiment received a lift Thursday after Atlanta Fed President Raphael Bostic said he thinks the central bank can keep its interest rate hikes to 25 basis points rather than the half-point increase backed by some other officials,
as quoted on CNBC. However, Fed Governor Christopher J. Waller adopted a hawkish tone in his comments, raising the likelihood of a higher terminal rate if inflation numbers don’t cool.
Among big developments in the corporate world,
Salesforce ( CRM Quick Quote CRM - Free Report) and Zoom ( ZM Quick Quote ZM - Free Report) came up with upbeat earnings and recorded considerable shares gain. Tesla ( TSLA Quick Quote TSLA - Free Report) hosted its Investors Day which lacked details about its future plan, which is why shares slumped about 6% in the key trading session. However, Tesla shares jumped to close out the week as electric-car maker reported strong China sales.
Against this backdrop, below we have highlighted a few winning inverse/leveraged ETFs of last week.
ETFs in Focus Breakwave Dry Bulk Shipping ETF ( BDRY Quick Quote BDRY - Free Report) – Up 18.1%
The underlying Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight. The fund’s expense ratio is 3.50%.
US Natural Gas Fund ( UNL Quick Quote UNL - Free Report) – Up 10.9%
The underlying Natural Gas Price Index is the near month futures contract to expire and the contracts for the following 11 months, for a total of 12 consecutive months. The fund charges 90 bps in fees.
Global X Copper Miners ETF ( COPX Quick Quote COPX - Free Report) – Up 9.9%
The underlying Solactive Global Copper Miners Total Return Index is designed to reflect the performance of the copper mining industry. It is comprised of selected companies globally that are actively engaged in some aspect of the copper mining industry, such as copper mining, refining, or exploration. The fund charges 65 bps in fees.
S&P Metals & Mining SPDR ( XME Quick Quote XME - Free Report) – Up 9.83%
The underlying S&P Metals & Mining Select Industry Index represents the metals and mining sub-industry portion of the S&P Total Market Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, American Stock Exchange, NASDAQ National Market and the NASDAQ Small Cap exchanges. The Metals & Mining Index is a modified equal weight index. The fund charges 35 bps in fees.
Sprott Junior Copper Miners ETF ( COPJ Quick Quote COPJ - Free Report) – Up 9.7%
The underlying Nasdaq Sprott Junior Copper Miners Index seeks to track the performance of mid, small and micro-cap companies in copper-mining related businesses. The fund charges 75 bps in fees.