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.
Wall Street delivered an upbeat performance last week on debt-ceiling hope. The S&P 500 (up 1.7%), the Dow Jones (up 0.4%), the Nasdaq Composite (up 3%) and the Russell 2000 (up 1.9%) — all key U.S. indexes were on a rallying mode on debt deal hopes. The Nasdaq is leading the Dow by the widest margin since 1991 as blue-chip gauge wiped off 2023 gains.
Last week, Thomas Simmons, Jefferies US Economist, offered a hopeful perspective, stating, "we are starting to see enough common themes in their views to feel confident that a deal is going to be announced in relatively short order," as quoted on Yahoo Finance. However, key U.S. indexes were in the red on Friday as debt ceiling talks hit a standstill (read: Wall Street On the Brink of Rally? Momentum ETFs to Tap).
The leisure industry, too, is continuing its recovery with the ebbing pandemic. Leisure industry watchers and researchers believe that the Fed will achieve its soft landing in 2023. Even baking in a soft recession this year, they’re expecting relatively high occupancy, revenue per available room (RevPAR) and hardly any impact on the room rate.
Meanwhile, U.S. corporate earnings came in decent. In the face of ambiguity, American consumers are demonstrating tenacity, a trend visible in Walmart's sturdy quarterly performance. Pointing to the healthy consumer segment in America, Walmart upgraded its annual adjusted earnings per share prediction from the former band of $5.90-$6.05 to a revised spectrum of $6.10-$6.20.
Against this backdrop, below, we highlight a few winning inverse/leveraged ETFs of last week.
Last week, Britain launched a $1.2 billion semiconductor plan after the U.S. and EU binge on chips. The investment will form part of a 20-year strategy on semiconductors — which has faced lengthy delays — outlining the U.K.’s plan to secure its chip supplies. The government will initially invest up to £200 million from 2023 to 2025 before expanding its commitments to up to £1 billion in the next decade, per a CNBC article. Plus, the latest uptake in the use of artificial intelligence is likely to contribute to the semiconductor space.
Ultra Bloomberg Natural Gas 2X ETF (BOIL - Free Report) ) – Up 22.7%
Natural gas spot prices rose at most locations. Price rose as Canada’s wildfires kept gas exports from that country near a 25-month low, per investing.com. Concerns over a likely future decline in output are rife as data revealed that energy companies had lowered the number of rigs for drilling gas.
The benchmark U.S. treasury yield started the week at 3.50% and ended the week at 3.70%. The three-month U.S. treasury yield started the week at 5.21% and ended at 5.29%. This has steepened the yield curve a bit. A less hawkish Fed has resulted in this trend. This is a winning scenario for bank stocks as a steepening yield curve has increased banks’ net interest margin.
Investors are showing renewed interest in the FANG stocks. Netflix (NFLX), Apple (AAPL), Alphabet (GOOGL), Meta (META), Microsoft (MSFT) and Nvidia (NVDA) stock all finished at their highest levels in at least a year. The strength of AI, corporate restructuring through layoffs, a moderation in interest rates and cooling inflation are helping FAANG stocks to bounce back after a struggling 2022.
Gold bullion prices declined 1.9% last week as the greenback gained. Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) added about 0.8% on hopes of a debt deal in the United States. As gold prices dived, gold miners’ stocks declined, which is why this inverse/leveraged gold mining ETF jumped.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Top Inverse/Leveraged ETFs of Last Week
Wall Street delivered an upbeat performance last week on debt-ceiling hope. The S&P 500 (up 1.7%), the Dow Jones (up 0.4%), the Nasdaq Composite (up 3%) and the Russell 2000 (up 1.9%) — all key U.S. indexes were on a rallying mode on debt deal hopes. The Nasdaq is leading the Dow by the widest margin since 1991 as blue-chip gauge wiped off 2023 gains.
Last week, Thomas Simmons, Jefferies US Economist, offered a hopeful perspective, stating, "we are starting to see enough common themes in their views to feel confident that a deal is going to be announced in relatively short order," as quoted on Yahoo Finance. However, key U.S. indexes were in the red on Friday as debt ceiling talks hit a standstill (read: Wall Street On the Brink of Rally? Momentum ETFs to Tap).
The leisure industry, too, is continuing its recovery with the ebbing pandemic. Leisure industry watchers and researchers believe that the Fed will achieve its soft landing in 2023. Even baking in a soft recession this year, they’re expecting relatively high occupancy, revenue per available room (RevPAR) and hardly any impact on the room rate.
Meanwhile, U.S. corporate earnings came in decent. In the face of ambiguity, American consumers are demonstrating tenacity, a trend visible in Walmart's sturdy quarterly performance. Pointing to the healthy consumer segment in America, Walmart upgraded its annual adjusted earnings per share prediction from the former band of $5.90-$6.05 to a revised spectrum of $6.10-$6.20.
Against this backdrop, below, we highlight a few winning inverse/leveraged ETFs of last week.
ETFs in Focus
Semiconductor Bull 3X Direxion (SOXL - Free Report) ) – Up 24%
Last week, Britain launched a $1.2 billion semiconductor plan after the U.S. and EU binge on chips. The investment will form part of a 20-year strategy on semiconductors — which has faced lengthy delays — outlining the U.K.’s plan to secure its chip supplies. The government will initially invest up to £200 million from 2023 to 2025 before expanding its commitments to up to £1 billion in the next decade, per a CNBC article. Plus, the latest uptake in the use of artificial intelligence is likely to contribute to the semiconductor space.
Ultra Bloomberg Natural Gas 2X ETF (BOIL - Free Report) ) – Up 22.7%
Natural gas spot prices rose at most locations. Price rose as Canada’s wildfires kept gas exports from that country near a 25-month low, per investing.com. Concerns over a likely future decline in output are rife as data revealed that energy companies had lowered the number of rigs for drilling gas.
Regional Banks Bull 3X Direxion (DPST - Free Report) ) – Up 22.5%
The benchmark U.S. treasury yield started the week at 3.50% and ended the week at 3.70%. The three-month U.S. treasury yield started the week at 5.21% and ended at 5.29%. This has steepened the yield curve a bit. A less hawkish Fed has resulted in this trend. This is a winning scenario for bank stocks as a steepening yield curve has increased banks’ net interest margin.
Microsectors Fang+ 3X ETN (FNGU - Free Report) ) – Up 18.8%
Investors are showing renewed interest in the FANG stocks. Netflix (NFLX), Apple (AAPL), Alphabet (GOOGL), Meta (META), Microsoft (MSFT) and Nvidia (NVDA) stock all finished at their highest levels in at least a year. The strength of AI, corporate restructuring through layoffs, a moderation in interest rates and cooling inflation are helping FAANG stocks to bounce back after a struggling 2022.
Microsectors Gold Miners -3X ETN (GDXD - Free Report) ) – Up 13.6%
Gold bullion prices declined 1.9% last week as the greenback gained. Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) added about 0.8% on hopes of a debt deal in the United States. As gold prices dived, gold miners’ stocks declined, which is why this inverse/leveraged gold mining ETF jumped.