Wall Street delivered mixed performance last week. The S&P 500 lost 0.6%, the Dow Jones retreated 1.8% and the Nasdaq added 0.3%. Last week saw the release of the all-important inflation reports.
Consumer inflation in the United States increased the most in seven months in November. The Consumer Price Index grew at an annual rate of 2.7%, up from 2.6% growth in October and in line with economists' expectations. Core prices were up 0.3% on a month-to-month basis, the biggest increase since April (read: 4 ETF Areas Hit One-Year High Amid In-Line November Inflation).
Wholesale prices increased 3% in November, the sharpest year-over-year rise since February 2023. Excluding volatile food and energy prices, so-called core producer prices rose 0.2% from October and 3.4% from November 2023.
Despite these reports, the market outlook for a 25-bp rate cut this week strengthened, with traders raising the odds to 96%, according to the CME Group’s FedWatch measure. The probability of a January reduction, however, fell to 18.5%, down from 19.8% one month ago.
Against this backdrop, below we highlight a few leveraged exchange-traded fund (ETF) that topped the performance chart last week.
Leveraged Tesla
Direxion Daily TSLA Bull 2X Shares (TSLL) – Up 39.7% Last Week
GraniteShares 2x Long TSLA Daily ETF (TSLR) – Up 39.5%
Tesla TSLA stock added 9.6% last week as the stock hit an all-time high. CEO Elon Musk's perceived influence on the incoming Trump administration has bolstered investor confidence in Tesla's future prospects. Tesla shares have reflected the top performer of the Mag 7 group over the last three months, gaining about 80% during the period.
The company announced it sold 21,900 electric vehicles on the mainland during the first week of December—the highest weekly sales recorded in Q4. Tesla’s strong performance has prompted multiple analysts to increase their price targets, lately (read: Tesla Stock Hits All-Time High: ETFs to Ride the Momentum).
Leveraged Alphabet
Direxion Daily GOOGL Bull 2X Shares (GGLL) – Up 24.9%
Alphabet shares added 8.7% last week as the company unveiled its breakthrough quantum computing chip – Willow. Google claims its new chip takes five minutes to solve a problem that would currently take the world's fastest super computers ten septillion years to complete. However, the chip is apparently in an experimental stage.
Leveraged Broadcom
Direxion Daily AVGO Bull 2X Shares (AVL) – Up 14.3%
Broadcom AVGO surged 24.4% on Friday — its best single-day performance ever — on the back of upbeat earnings results. The company reported a record fiscal year 2024 revenue of $51.6 billion, a 44% year-over-year increase, driven by a 220% surge in AI-related revenue to $12.2 billion and strong performances in the semiconductor and infrastructure software segments.
Broadcom announced an 11% increase in its quarterly dividend to $0.59 per share for fiscal 2025, marking the fourteenth consecutive annual dividend increase since 2011.
Leveraged Consumer Discretionary
Direxion Daily Consumer Discretionary Bull 3X Shares (WANT) – Up 14.1%
In the fourth quarter of 2024, US consumer optimism touched its highest level since before the COVID-19 pandemic. Consumer optimism in the United States increased six percentage points, reaching 47% in the fourth quarter. Optimistic economic indicators, such as low unemployment rates, stable job growth, and rising wages—as well as a swift outcome in the US election—likely helped fuel this optimism.
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