We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street was upbeat in October, with the S&P 500 adding 7.9%, the Dow Jones gaining as much as 14%, the Nasdaq adding 1.6% and the Russell 2000 jumping 8.1%. Let’s highlight the key financial events of the month.
October Marks Best Month for Dow Jones Since 1976
The Dow Jones Industrial Average has just logged its best month since 1976 in October. Focus on value stocks, favorable sectoral exposure, oil rally and cheaper valuation helped the Dow Jones to attain this height. Such a rally put ETFs like SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) and Guggenheim Dow Jones Industrial Average Dividend ETF (DJD) in focus.
Energy Continues to Remain Outperformer on OPEC+ Output Cut Deal
Oil prices increased considerably in October as OPEC+ producers agreed deep output cuts, seeking to spur a recovery in crude prices despite repeated calls from U.S. President Joe Biden’s administration for the group to pump more to lower fuel prices and contain global inflation.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about two million barrels per day from November. Energy analysts had mostly expected the group to cut output in the range of 500,000 barrels and two million barrels, as quoted on CNBC. The fear of supply shortage boosted oil prices (read: Oil ETFs Up on Steep OPEC+ Output Cuts).
S&P Oil & Gas Eqpt & Services SPDR (XES - Free Report) (up 36.8%) and Vaneck Oil Services ETF (OIH - Free Report) (up 35.3%) were the winners in the month.
Aerospace & Defense Hog Attention
Aerospace and defense stocks have rallied lately with rising geopolitical tensions. The Russia-Ukraine war is unlikely to end soon, North Korean saber rattling has been on the rise, and China-Taiwan tensions have flared up since President Xi secured a third term in office. Rising geopolitical tensions could result in increased defense spending by the United States and its European allies as they try to counter military ambitions of China and Russia. US Aerospace & Defense iShares ETF (ITA - Free Report) and Aerospace & Defense Invesco ETF (PPA) added 17% each in October.
Marijuana on a High
Advisorshares Pure US Cannabis ETF (MSOS - Free Report) and Etfmg U.S. Alternative Harvest ETF (MJUS) added 16% and 15%, respectively in October. The global cannabis market is estimated to be valued at $27.7 billion in 2022 and is projected to reach $82.3 billion by 2027, recording a CAGR of 24.3% in terms of value, per ResearchAndMarkets.com, as quoted on benzinga. Plus, President Joe Biden recently pardoned all prior federal offenses of simple marijuana possession. This has boosted the marijuana space (read: Cannabis ETFs Trending Up to Start Q4).
Carbon Allowance Gained Traction
Going green has become a mantra to save the earth. The governments around the world are focused on moving toward the goal of net-zero emissions by 2050 set by the 2015 Paris agreement. Some companies are trying to reduce their carbon footprint voluntarily.
Another way for companies to manage their carbon footprint is to buy and sell emission allowances. In the cap-and-trade system, a government sets a limit on overall emissions which is tightened over time. Big carbon emitters need to buy these pollution permits to stay under regularity caps. Such initiatives have boosted carbon allowance exchange-traded products.
Kraneshares European Carbon Allowance ETF (KEUA - Free Report) (up 29.3%), iPath Series B Carbon ETN (GRN) (up 26.6%) and ETF Series Solutions Carbon Strategy ETF (KARB) (up 18.2%) are some of the key winners.
Small-Caps Were Winners
Small-cap value ETFs logged massive gains last month. Notably, value stocks perform better in a rising rate environment. Invesco S&P Smallcap Value With Momentum ETF (XSVM - Free Report) (up 14.8%), Smallcap Revenue ETF Oppenheimer (RWJ - Free Report) (up 14.6%), S&P Smallcap 600 Value Vanguard (VIOV) (up 14.5%) and S&P Smallcap Value ETF SPDR (SLYV) (up 14.5%) surged.
Earnings Erase $350B From Big Tech: Networking & Artificial Intelligence Win
Tech titans had dismal earnings this season due to weak results and a disappointing outlook. The so-called "GAMMA" stocks — Alphabet, Apple, Microsoft, Meta Platforms, and Amazon — collectively shed about $350 billion in market value in the final week of October. Meta fell to the lowest close since 2015.
Still, some areas surged massively in the month. North American Tech-Multimedia Networking ETF (up 16.2%) and Robotics Artificial Intelligence Direxion UBOT (up 16.7%) were the winners.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Top ETF Stories of October
Wall Street was upbeat in October, with the S&P 500 adding 7.9%, the Dow Jones gaining as much as 14%, the Nasdaq adding 1.6% and the Russell 2000 jumping 8.1%. Let’s highlight the key financial events of the month.
October Marks Best Month for Dow Jones Since 1976
The Dow Jones Industrial Average has just logged its best month since 1976 in October. Focus on value stocks, favorable sectoral exposure, oil rally and cheaper valuation helped the Dow Jones to attain this height. Such a rally put ETFs like SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) and Guggenheim Dow Jones Industrial Average Dividend ETF (DJD) in focus.
Energy Continues to Remain Outperformer on OPEC+ Output Cut Deal
Oil prices increased considerably in October as OPEC+ producers agreed deep output cuts, seeking to spur a recovery in crude prices despite repeated calls from U.S. President Joe Biden’s administration for the group to pump more to lower fuel prices and contain global inflation.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about two million barrels per day from November. Energy analysts had mostly expected the group to cut output in the range of 500,000 barrels and two million barrels, as quoted on CNBC. The fear of supply shortage boosted oil prices (read: Oil ETFs Up on Steep OPEC+ Output Cuts).
S&P Oil & Gas Eqpt & Services SPDR (XES - Free Report) (up 36.8%) and Vaneck Oil Services ETF (OIH - Free Report) (up 35.3%) were the winners in the month.
Aerospace & Defense Hog Attention
Aerospace and defense stocks have rallied lately with rising geopolitical tensions. The Russia-Ukraine war is unlikely to end soon, North Korean saber rattling has been on the rise, and China-Taiwan tensions have flared up since President Xi secured a third term in office. Rising geopolitical tensions could result in increased defense spending by the United States and its European allies as they try to counter military ambitions of China and Russia. US Aerospace & Defense iShares ETF (ITA - Free Report) and Aerospace & Defense Invesco ETF (PPA) added 17% each in October.
Marijuana on a High
Advisorshares Pure US Cannabis ETF (MSOS - Free Report) and Etfmg U.S. Alternative Harvest ETF (MJUS) added 16% and 15%, respectively in October. The global cannabis market is estimated to be valued at $27.7 billion in 2022 and is projected to reach $82.3 billion by 2027, recording a CAGR of 24.3% in terms of value, per ResearchAndMarkets.com, as quoted on benzinga. Plus, President Joe Biden recently pardoned all prior federal offenses of simple marijuana possession. This has boosted the marijuana space (read: Cannabis ETFs Trending Up to Start Q4).
Carbon Allowance Gained Traction
Going green has become a mantra to save the earth. The governments around the world are focused on moving toward the goal of net-zero emissions by 2050 set by the 2015 Paris agreement. Some companies are trying to reduce their carbon footprint voluntarily.
Another way for companies to manage their carbon footprint is to buy and sell emission allowances. In the cap-and-trade system, a government sets a limit on overall emissions which is tightened over time. Big carbon emitters need to buy these pollution permits to stay under regularity caps. Such initiatives have boosted carbon allowance exchange-traded products.
Kraneshares European Carbon Allowance ETF (KEUA - Free Report) (up 29.3%), iPath Series B Carbon ETN (GRN) (up 26.6%) and ETF Series Solutions Carbon Strategy ETF (KARB) (up 18.2%) are some of the key winners.
Small-Caps Were Winners
Small-cap value ETFs logged massive gains last month. Notably, value stocks perform better in a rising rate environment. Invesco S&P Smallcap Value With Momentum ETF (XSVM - Free Report) (up 14.8%), Smallcap Revenue ETF Oppenheimer (RWJ - Free Report) (up 14.6%), S&P Smallcap 600 Value Vanguard (VIOV) (up 14.5%) and S&P Smallcap Value ETF SPDR (SLYV) (up 14.5%) surged.
Earnings Erase $350B From Big Tech: Networking & Artificial Intelligence Win
Tech titans had dismal earnings this season due to weak results and a disappointing outlook. The so-called "GAMMA" stocks — Alphabet, Apple, Microsoft, Meta Platforms, and Amazon — collectively shed about $350 billion in market value in the final week of October. Meta fell to the lowest close since 2015.
Still, some areas surged massively in the month. North American Tech-Multimedia Networking ETF (up 16.2%) and Robotics Artificial Intelligence Direxion UBOT (up 16.7%) were the winners.