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For Immediate Release
Chicago, IL – June 28, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: S&P Biotech Bull 3X Direxion LABU, DJ Internet Bull 3X Direxion WEBL, Ultrashort Bloomberg Natural Gas ETF KOLD
Here are highlights from Monday’s Analyst Blog:
Best-Leveraged ETFs of Last Week
U.S. stocks saw a massive jump on the final trading session of last week, with the S&P 500 snapping a three-week losing streak as investors digested the Federal Reserve officials' latest affirmations that they are focused on lowering inflation. The S&P 500 advanced more than 3% on Friday, logging back-to-back days of gains and marking its first weekly advance since late May.
Powell's assertion that the Fed's commitment to handling inflation is "unconditional" indicated that the central bank would not stop hiking rates in modest signs of economic slowdown or recession. The S&P 500 (up 6.45%), the Dow Jones (up 5.4%), the Nasdaq Composite (up 7.5%) and the Russell 2000 (up 6%) saw handsome gains last week.
Cyclical stocks — seen as more vulnerable during downturns — lagged last week, with the energy sector recording a weekly loss and the materials sector also underperforming. West Texas intermediate crude oil futures hovered around $107 per barrel and recorded its third straight weekly loss. The commodity is on its way to the first monthly loss since November.
Among big market news, Wall Street's largest banks are ready to return excess capital to shareholders in the form of dividends and share buybacks after all of them cleared the Federal Reserve's 2022 Stress Test. The annual stress tests were established by the Fed, following the 2008 financial crisis, as a measure to ensure that banks could withstand any similar shock in the future.
This year, all the 34 biggest lenders that tested have cleared the results. The 2022 stress tests' focus is on an employment crisis that sends the jobless rate to more than 10% for at least two years, plus a 40% drop in commercial real estate prices. While this year's scenarios were devised before the Russia-Ukraine conflict and the current red-hot inflation, they indicate that the banks are well-prepared for a potential U.S. recession, which is predicted for later this year or the next.
Against this backdrop, below we highlight a few leveraged ETFs that gained massively last week.
S&P Biotech Bull 3X Direxion – Up 69.7%
As the markets recovered, the beaten-down zones recoiled faster. Biotech is one such area.
DJ Internet Bull 3X Direxion – Up 42.3%
Technology is one of the most losing sectors in recent weeks as rising rate worries weighed on it massively. Amid slight cues of market recovery, the tech sector rebounded heavily.
Ultrashort Bloomberg Natural Gas ETF – Up 35.1%
As energy prices started falling after a massive rally, the leveraged inverse ETF KOLD's decline is self-explanatory.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Direxion Daily S&P Biotech Bull 3X Shares (LABU): ETF Research Reports
ProShares UltraShort Bloomberg Natural Gas (KOLD): ETF Research Reports
Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL): ETF Research Reports
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