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Wall Street offered a moderate performance last week with the S&P 500 (up 0.9%), the Dow Jones (up 0.9%), the Nasdaq (up 1.3%), the Russell 2000 (down 1.3%) returning in the range of down 1.3% to up 1.3%. Presently, Wall Street is preoccupied with the earnings season and has received varied corporate results.Last week was marked with upbeat big tech earnings, which boosted the tech-heavy Nasdaq the most.
Meanwhile, the regional banking crisis flared up all over again and First Republic shares again started to fall. According to the Wall Street Journal, JPMorgan Chase & Co. and PNC Financial Services Group are competing to acquire First Republic Bank in a deal that would take place after the troubled bank is anticipated to be seized by the government, as quoted on Economic Times (read: Time to Steer Clear of Regional Bank ETFs With Renewed FRC Crisis?).
Meanwhile, the US economy grew at an annualized pace of 1.1% during the first quarter of 2023, falling short of consensus forecasts of 1.9% surveyed by Bloomberg. The data highlighted a slowdown in wholesale trade, machinery, equipment, supplies, and manufacturing, as well as a decline in single-family construction, contributing to the lower growth rate. However, growth in consumer spending in goods and services helped keep annualized growth positive for the quarter (read: Should ETF Investors at all Worry About Slowing U.S. Economy?).
Against this backdrop, below we highlight a few inverse/leveraged ETFs of last week that breezed past the broader market.
ETFs in Focus
Graniteshares Meta 1.5X Daily ETF (FBL - Free Report) – Up 19.3%
Facebook’s parent company Meta Platforms (META) reported solid first-quarter 2023 results, wherein it outpaced revenue and earnings estimates. The company issued upbeat revenue guidance amid the ongoing progress to bring down costs. META shares spiked as much as 11% to their highest level since January 2022 post earnings on elevated volume (read: Meta Surges on Strong Q1 Earnings: ETFs to Buy).
Cannabis-related stocks experienced a significant boost on Apr 27 as the Secure and Fair Enforcement (SAFE) Banking Act re-introduced in the U.S. Senate and House of Representatives. Currently, many banks avoid working with marijuana companies due to the industry's illegal status at the federal level. This has led to a reliance on cash transactions, making it difficult for cannabis businesses to access loans, lines of credit, and other essential financial services. If passed, the SAFE Banking Act would level the playing field for marijuana businesses in states where cannabis, facilitating growth and attracting investment (read: SAFE Banking Act Resurgence Boosts Pot ETFs: A New Era Ahead?).
The world's largest software maker — Microsoft (MSFT) — reported strong third-quarter fiscal 2023 results, beating earnings and revenue estimates. The company also provided an upbeat outlook for its nascent artificial intelligence services. Shares of MSFT jumped as much as 9% post earnings on an elevated volume (read: ETFs to Buy on Microsoft's Q2 Earnings Strength).
Last week was all about upbeat big tech earnings. Alphabet, Amazon, Microsoft, Meta – all topped estimates. Notably, Google parent Alphabet (GOOGL) reported solid first-quarter 2023 results, topping both revenue and earnings estimates. The result followed two quarters of earnings disappointment. Amazon.com (AMZN) reported strong first-quarter results, wherein it beat both earnings and revenue estimates. Though the e-commerce giant warned about a continued slowdown in the company's profitable cloud computing unit, it provided an upbeat revenue outlook for the ongoing quarter. No wonder, FANG stocks would surge on the upbeat results.
Existing US home sales fell 2.4% sequentially to a seasonally adjusted annual rate of 4.44 million in March of 2023, compared to market forecasts of 4.5 million. In February, sales rose a downwardly revised 13.8% which was the biggest surge since July of 2020. The median existing-home price for all housing types was $375,700, a decline of 0.9% from March 2022. About 65% of homes sold in March were on the market for less than a month and first-time buyers contributed to 28% of sales, up from 27% in February. This showed the struggling housing market is trying to mark a rebound.
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Best Inverse/Leveraged ETFs of Last Week
Wall Street offered a moderate performance last week with the S&P 500 (up 0.9%), the Dow Jones (up 0.9%), the Nasdaq (up 1.3%), the Russell 2000 (down 1.3%) returning in the range of down 1.3% to up 1.3%. Presently, Wall Street is preoccupied with the earnings season and has received varied corporate results.Last week was marked with upbeat big tech earnings, which boosted the tech-heavy Nasdaq the most.
Meanwhile, the regional banking crisis flared up all over again and First Republic shares again started to fall. According to the Wall Street Journal, JPMorgan Chase & Co. and PNC Financial Services Group are competing to acquire First Republic Bank in a deal that would take place after the troubled bank is anticipated to be seized by the government, as quoted on Economic Times (read: Time to Steer Clear of Regional Bank ETFs With Renewed FRC Crisis?).
Meanwhile, the US economy grew at an annualized pace of 1.1% during the first quarter of 2023, falling short of consensus forecasts of 1.9% surveyed by Bloomberg. The data highlighted a slowdown in wholesale trade, machinery, equipment, supplies, and manufacturing, as well as a decline in single-family construction, contributing to the lower growth rate. However, growth in consumer spending in goods and services helped keep annualized growth positive for the quarter (read: Should ETF Investors at all Worry About Slowing U.S. Economy?).
Against this backdrop, below we highlight a few inverse/leveraged ETFs of last week that breezed past the broader market.
ETFs in Focus
Graniteshares Meta 1.5X Daily ETF (FBL - Free Report) – Up 19.3%
Facebook’s parent company Meta Platforms (META) reported solid first-quarter 2023 results, wherein it outpaced revenue and earnings estimates. The company issued upbeat revenue guidance amid the ongoing progress to bring down costs. META shares spiked as much as 11% to their highest level since January 2022 post earnings on elevated volume (read: Meta Surges on Strong Q1 Earnings: ETFs to Buy).
Advisorshares Msos 2X Daily ETF (MSOX - Free Report) – Up 12.7%
Cannabis-related stocks experienced a significant boost on Apr 27 as the Secure and Fair Enforcement (SAFE) Banking Act re-introduced in the U.S. Senate and House of Representatives. Currently, many banks avoid working with marijuana companies due to the industry's illegal status at the federal level. This has led to a reliance on cash transactions, making it difficult for cannabis businesses to access loans, lines of credit, and other essential financial services. If passed, the SAFE Banking Act would level the playing field for marijuana businesses in states where cannabis, facilitating growth and attracting investment (read: SAFE Banking Act Resurgence Boosts Pot ETFs: A New Era Ahead?).
Daily MSFT 1.5X ETF Direxion (MSFU - Free Report) – Up 11.3%
The world's largest software maker — Microsoft (MSFT) — reported strong third-quarter fiscal 2023 results, beating earnings and revenue estimates. The company also provided an upbeat outlook for its nascent artificial intelligence services. Shares of MSFT jumped as much as 9% post earnings on an elevated volume (read: ETFs to Buy on Microsoft's Q2 Earnings Strength).
Microsectors Fang+ 3X ETN (FNGU - Free Report) – Up 8.1%
Last week was all about upbeat big tech earnings. Alphabet, Amazon, Microsoft, Meta – all topped estimates. Notably, Google parent Alphabet (GOOGL) reported solid first-quarter 2023 results, topping both revenue and earnings estimates. The result followed two quarters of earnings disappointment. Amazon.com (AMZN) reported strong first-quarter results, wherein it beat both earnings and revenue estimates. Though the e-commerce giant warned about a continued slowdown in the company's profitable cloud computing unit, it provided an upbeat revenue outlook for the ongoing quarter. No wonder, FANG stocks would surge on the upbeat results.
Homebuilders & Suppliers Bull 3X Direxion (NAIL - Free Report) – Up 7.1%
Existing US home sales fell 2.4% sequentially to a seasonally adjusted annual rate of 4.44 million in March of 2023, compared to market forecasts of 4.5 million. In February, sales rose a downwardly revised 13.8% which was the biggest surge since July of 2020. The median existing-home price for all housing types was $375,700, a decline of 0.9% from March 2022. About 65% of homes sold in March were on the market for less than a month and first-time buyers contributed to 28% of sales, up from 27% in February. This showed the struggling housing market is trying to mark a rebound.