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The S&P 500 managed to close last week in positive territory despite a challenging start to 2024. However, stocks ended the day with mixed results on Friday, surrendering earlier gains, particularly due to underwhelming big bank earnings, which failed to instill confidence in a robust quarterly earnings season. Overall, the S&P 500 added 1.84% last week, the Dow Jones has advanced 0.34% and the Nasdaq has eked out about 3% gains.
Earnings Report
The Dow Jones Industrial Average recorded a 0.3% decline, equivalent to more than 100 points lost. In contrast, the benchmark the S&P 500 posted a modest gain of 0.1%, while the tech-oriented Nasdaq Composite finished slightly above the flatline.
Bank Earnings
Wall Street witnessed the commencement of fourth-quarter earnings reports, a pivotal moment for stocks aiming to recover from the losses incurred earlier in the year. Notably, JPMorgan Chase (JPM - Free Report) , Bank of America (BAC - Free Report) , and Wells Fargo (WFC) released their results on Jan 12, 2024. Although JPMorgan Chase posted favorable results, Bank of America and Wells Fargo experienced share price declines, failing to ease concerns regarding likely future challenges.
Airlines Under Pressure
Airline stocks faced considerable declines towards the end of the week, with United Airlines (UAL - Free Report) plummeting by over 10%, while American Airlines (AAL) and Delta (DAL - Free Report) also saw declines of approximately 9%. Delta, which reported its earnings earlier in the day, managed to surpass expectations for both revenue and profit; however, it did revise down its 2024 earnings outlook.
Meta's Remarkable Turnaround
In a noteworthy development, Meta (META - Free Report) nearly completed a remarkable reversal by reaching a 52-week high during intra-day trading on Jan 12, 2024. This comeback comes after the company endured a substantial drop in its stock price in 2022, and it is currently within 2% of its all-time high.
Oil Price Surge on Geopolitical Tensions
United States Oil ETF (USO - Free Report) surged by 2.9% last week. U.S. and allied airstrikes against Houthi rebels in Yemen led to the rally. These actions provoked threats of retaliation from the Iran-backed group responsible for previous Red Sea shipping attacks. United States Brent Oil Fund LP (BNO) added more than 3% last week.
Inflation Indicators
Investor attention also turned to inflation concerns after the December Consumer Price Index (CPI) report exceeded expectations on Thursday. In a surprising twist, the Producer Price Index (PPI) released on Friday revealed an unexpected decline in prices for the past month. This unexpected PPI drop raised hopes that inflation may continue to ease in the coming months.
Against this backdrop, below we highlight a few winning inverse/leveraged ETFs of last week.
Inside Winning Inverse/Leveraged ETFs
GraniteShares 1.5x Long NVDA Daily ETF (NVDL - Free Report) ) – Up 17.3% Last Week
This ETF is active and does not track a benchmark. The GraniteShares 1.5x Long NVDA Daily ETF seeks daily investment results, before fees and expenses, of 1.5 times the daily percentage change of the common stock of NVIDIA Corp. The expense ratio of the fund is 1.15%.
Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares (UBOT - Free Report) ) – Up 14.7%
The Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index.The expense ratio of the fund is 1.35%.
The MicroSectors FANG & Innovation 3x Leveraged ETN are linked to three times leveraged participation in the performance of the Solactive FANG Innovation Index, compounded daily, minus the applicable fees. The fund charges 95 bps in fees.
Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL - Free Report) ) – Up 13.6%
The Direxion Daily Dow Jones Internet Bull 3X Shares seek daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones Internet Composite Index. The expense ratio of the fund is 1.01%.
The ProShares Ultra Nasdaq Cloud Computing seeks daily investment results, before fees and expenses, that correspond to two times the daily performance of the ISE CTA Cloud Computing Index. The expense ratio of the fund is 0.95%.
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5 Best Inverse/Leveraged ETFs of Last Week
The S&P 500 managed to close last week in positive territory despite a challenging start to 2024. However, stocks ended the day with mixed results on Friday, surrendering earlier gains, particularly due to underwhelming big bank earnings, which failed to instill confidence in a robust quarterly earnings season. Overall, the S&P 500 added 1.84% last week, the Dow Jones has advanced 0.34% and the Nasdaq has eked out about 3% gains.
Earnings Report
The Dow Jones Industrial Average recorded a 0.3% decline, equivalent to more than 100 points lost. In contrast, the benchmark the S&P 500 posted a modest gain of 0.1%, while the tech-oriented Nasdaq Composite finished slightly above the flatline.
Bank Earnings
Wall Street witnessed the commencement of fourth-quarter earnings reports, a pivotal moment for stocks aiming to recover from the losses incurred earlier in the year. Notably, JPMorgan Chase (JPM - Free Report) , Bank of America (BAC - Free Report) , and Wells Fargo (WFC) released their results on Jan 12, 2024. Although JPMorgan Chase posted favorable results, Bank of America and Wells Fargo experienced share price declines, failing to ease concerns regarding likely future challenges.
Airlines Under Pressure
Airline stocks faced considerable declines towards the end of the week, with United Airlines (UAL - Free Report) plummeting by over 10%, while American Airlines (AAL) and Delta (DAL - Free Report) also saw declines of approximately 9%. Delta, which reported its earnings earlier in the day, managed to surpass expectations for both revenue and profit; however, it did revise down its 2024 earnings outlook.
Meta's Remarkable Turnaround
In a noteworthy development, Meta (META - Free Report) nearly completed a remarkable reversal by reaching a 52-week high during intra-day trading on Jan 12, 2024. This comeback comes after the company endured a substantial drop in its stock price in 2022, and it is currently within 2% of its all-time high.
Oil Price Surge on Geopolitical Tensions
United States Oil ETF (USO - Free Report) surged by 2.9% last week. U.S. and allied airstrikes against Houthi rebels in Yemen led to the rally. These actions provoked threats of retaliation from the Iran-backed group responsible for previous Red Sea shipping attacks. United States Brent Oil Fund LP (BNO) added more than 3% last week.
Inflation Indicators
Investor attention also turned to inflation concerns after the December Consumer Price Index (CPI) report exceeded expectations on Thursday. In a surprising twist, the Producer Price Index (PPI) released on Friday revealed an unexpected decline in prices for the past month. This unexpected PPI drop raised hopes that inflation may continue to ease in the coming months.
Against this backdrop, below we highlight a few winning inverse/leveraged ETFs of last week.
Inside Winning Inverse/Leveraged ETFs
GraniteShares 1.5x Long NVDA Daily ETF (NVDL - Free Report) ) – Up 17.3% Last Week
This ETF is active and does not track a benchmark. The GraniteShares 1.5x Long NVDA Daily ETF seeks daily investment results, before fees and expenses, of 1.5 times the daily percentage change of the common stock of NVIDIA Corp. The expense ratio of the fund is 1.15%.
Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares (UBOT - Free Report) ) – Up 14.7%
The Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index.The expense ratio of the fund is 1.35%.
MicroSectors Solactive FANG & Innovation 3X Leveraged ETN (BULZ - Free Report) ) – Up 13.9%
The MicroSectors FANG & Innovation 3x Leveraged ETN are linked to three times leveraged participation in the performance of the Solactive FANG Innovation Index, compounded daily, minus the applicable fees. The fund charges 95 bps in fees.
Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL - Free Report) ) – Up 13.6%
The Direxion Daily Dow Jones Internet Bull 3X Shares seek daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones Internet Composite Index. The expense ratio of the fund is 1.01%.
ProShares Ultra Nasdaq Cloud Computing ETF (SKYU - Free Report) ) – Up 10.5%
The ProShares Ultra Nasdaq Cloud Computing seeks daily investment results, before fees and expenses, that correspond to two times the daily performance of the ISE CTA Cloud Computing Index. The expense ratio of the fund is 0.95%.