Wall Street was upbeat last week with the S&P 500 adding about 2.9%, the Dow Jones gaining about 3.7% and the Nasdaq Composite advancing about 2.5%. Both the Dow Jones and the S&P 500 indexes posted their biggest weekly advance since the week of the U.S. presidential election in November.
Retail sales grew at a slower pace than Wall Street had expected in December. This has probably triggered hopes for a dovish Fed in the near term, which in turn boosted the broader market (read: 4 ETF Sectors to Win Despite Moderate Retail Sales in December).
Gaza truce, easing inflation and solid bank earnings also contributed to the Wall Street gains. Most big banks came up with upbeat earnings last week (read: ETFs to Play on Gaza Truce, Easing Inflation & Solid Bank Earnings).
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
Cooling Inflation
The annual inflation rate in the United States rose for the 3rd consecutive month to 2.9% in December 2024 from 2.7% in November, in line with market expectations. This year-end rise is partly driven by low base effects from last year, particularly for energy.
Gaza Ceasefire Agreement Reached
On Wednesday, Israel and Hamas finalized a ceasefire and hostage release deal aimed at ending the 15-month war in the Gaza Strip. The conflict has caused widespread devastation and inflamed regional tensions. the deal's implementation would occur in three phases. The deal is built on a framework proposed by the Biden administration in May.
Moderate Retail Sales in December
Retail sales grew at a slower pace than Wall Street had expected in December. Retail sales rose 0.4% sequentially in December. Economists had expected a 0.6% rise in spending, according to Bloomberg data. Meanwhile, retail sales in November were revised up to 0.8% from a prior reading that showed a 0.7% increase in the month, according to Census Bureau data (read: 4 ETF Sectors to Win Despite Moderate Retail Sales in December).
Bitcoin Stages Rebound
Bitcoin staged a rebound last week with about 9% gains. Most securities that are linked to Bitcoin mining and trading recorded gains in prices. For example, MicroStrategy Inc MSTR, the world’s largest Bitcoin hoarder, shares surged about 28% last week. Shares of Coinbase Global Inc. COIN, which operates a cryptocurrency exchange platform, jumped about 20% last week (read: Will MicroStrategy ETFs Get a Boost from the Nasdaq-100 Joining?).
Winning ETFs in Focus
Against this backdrop, below we highlight a few leveraged exchange-traded funds (ETFs) that gained last week.
Bull-MSTR – Defiance Daily Target 2x Long MSTR ETF (MSTX) – Up 43.7%
The Defiance Daily Target 2X Long MSTR ETF seeks daily leveraged investment results of 2x the daily percentage change in the share price of MicroStrategy Incorporated. The expense ratio of the ETF is 1.29% annually.
Bull Coinbase – GraniteShares 2x Long COIN Daily ETF (CONL) – Up 28.5%
The GraniteShares 2x Long COIN Daily ETF seeks daily investment results, before fees and expenses, of 2 times the daily percentage change of the common stock of Coinbase Global Inc. The expense ratio of the ETF is 1.15% annually.
Bull Homebuilders – Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) – Up 26.8%
The Direxion Daily Homebuilders & Supplies Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones U.S. Select Home Construction Index, which measures U.S companies in the home construction sector that provide a wide range of products and services related to homebuilding. The expense ratio is 0.97%.
Bull Regional Banks – Direxion Daily Regional Banks Bull 3X Shares (DPST) – Up 25.4%
The Direxion Daily Regional Banks Bull 3x Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Regional Banks Select Industry Index. The expense ratio of the ETF is 0.95% annually.
Bull Bitcoin – ProShares Ultra Bitcoin ETF (BITU) – Up 21.7%
The ProShares Ultra Bitcoin ETF seeks daily investment results that correspond, before fees and expenses, to 2X the daily performance of the Bloomberg Bitcoin Index. The ETF charges 95 bps in fees.
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