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Last week was moderate for Wall Street with the S&P 500, the Dow Jones and the Nasdaq returning about 3%, 2.2% and 6.1%, respectively. Wall Street staged a relief rally on hopes of reopening of American businesses, an improving virus outlook and chances of treatment coming on stream. Wall Street gained despite downbeat data in the field of industrial production, retail sales and homebuilder confidence (read: Order Cancellations Weigh On Housing ETFs: What Lies Ahead?).
Government’s and the Fed’s unprecedented stimulus to support the economy also had the markets charged up. On Apr 17, the United States announced $19 billion of coronavirus aid for farmers and food purchases for the needy. No doubt, recessionary fears are largely due to widespread lockdowns globally. But the virus scare and lockdowns have raised demand for some specific investing areas this time around.
Against this backdrop, below we highlight a few sector ETFs that topped Wall Street last week.
This is one of the sturdiest sectors amid the coronavirus outbreak as social distancing boosted demand for work-from-home, cloud computing, video gaming, streaming, and online payments. The growing adoption of 5G technology — the next wireless revolution — is opening up further opportunities. Internet stocks have all the more reason to stay safe as it has less to do with human contact (read: Amid The Tech Slump, Internet ETFs Most Resilient To Virus).
MicroSectors FANG+ ETN FNGS (up 11.2%), ARK Innovation ETF ARKK (up 10.5%), Invesco DWA Technology Momentum ETF PTF (up 10.1%) and WisdomTree Cloud Computing Fund WCLD (up 9.9%) were the prominent winners.
Development in the area of antibody treatment and vaccine has been encouraging. Gilead Sciences’ GILD antiviral medicine remdesivir is receiving positive response in clinical trials in some COVID-19 patients. Plus, Abbott ABT has launched its third COVID-19 test. Then there are healthcare giants like Johnson & Johnson JNJ which are trying to come up with a vaccine. (read: Biotech Stocks, ETFs To Gain On COVID-19 Vaccine & Drug Progress).
In short, the ongoing medical emergency has brightened the sector’s prospects pretty much. No wonder, ARK Genomic Revolution Multi-Sector ETF ARKG (up 12.3%), iShares Genomics Immunology and Healthcare ETF IDNA (up 10.9%), VanEck Vectors Biotech ETF BBH (up 10.5%) and Loncar Cancer Immunotherapy ETF CNCR (up 10.5%) gained materially last week.
With demand sinking and supply overflowing, energy companies are now looking only for storage — something that global oil producers and refiners are running short of. However, while oil prices slumped to as low as $18 last week, MLPs were not in that bad a position. This is because MLPs earn profits from the quantity of oil and natural gas they are transporting. Plus, MLPs are high-dividend in nature. ETRACS Alerian MLP Index ETN AMU (up 9.9%), Alerian MLP ETF AMLP (up 9.6%) and Global X MLP ETF MLPA (up 9.4%) were the winners.
Social distancing amid growing fears of virus contamination has been aiding the space. Though U.S. retail sales slumped in March, non-store retail trade in March rose 3.1% sequentially and 9.7% year over year. (read: Is Coronavirus a Boon for Online Retail ETFs?).
Online orders have jumped 80% in North America since January. Not only in the United States, lockdowns are benefiting complete c-Commerce brands in Europe too. Adobe Analytics indicated a 25% surge in average U.S. daily online sales in Mar 13-15 compared with Mar 1-11. Since March data was bullish, investors can expect gains in online sales in the peak of lockdown.
Global X E-commerce ETF EBIZ (up 9%), Amplify Online Retail ETF IBUY (up 8.8%), ProShares Long Online/Short Stores ETF CLIX (up 8.8%), and ProShares Online Retail ETF ONLN (up 8.3%) were the winners.
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Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports Alerian MLP ETF (AMLP): ETF Research Reports Loncar Cancer Immunotherapy ETF (CNCR): ETF Research Reports VanEck Vectors Biotech ETF (BBH): ETF Research Reports Amplify Online Retail ETF (IBUY): ETF Research Reports Global X MLP ETF (MLPA): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports ProShares Long Online/Short Stores ETF (CLIX): ETF Research Reports UBS ETRACS Alerian MLP Index ETN (AMU): ETF Research Reports ARK Genomic Revolution ETF (ARKG): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report