US indexes modestly higher, Nasdaq up 0.3%
Comm svcs leads S&P 500 sector gains; Energy weakest group
Dollar rallies ~0.5%; gold edges up; crude down >2%; bitcoin down >3%
US 10-Year Treasury yield edges down to ~4.11%
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BOFA CLIENTS CONTINUE TO LOG OUT OF TECH STOCKS
BofA Securities equity and quant strategist Jill Carey Hall says that last week, with the S&P 500 index .SPX gaining just 0.1%, clients sold U.S. equities, led by large outflows from single stocks ($4.4 billion) for a third week in a row. Clients bought equity ETFs for a fifth straight week.
Clients offloaded stocks across size segments, but flows into large-cap ETFs led clients to be net buyers of large cap equities overall.
"Institutional clients led the selling after buying the dip the prior week; retail clients were also sellers (for the 2nd straight week after buying most weeks since mid-Sept.). Hedge funds were the sole net buyers after selling the prior week," writes Hall in her note.
She adds that corporate client buybacks ramped up for a second week but have remained below typical seasonal levels throughout this earnings season. Tech buybacks (rolling 12-week sum) have slowed to a $7-8 billion run rate this month vs a $9-10 billion run rate since August.
Hall says that Tech stocks saw the biggest outflows. In fact, the group has now seen outflows for five straight weeks. Staples and Real Estate saw the biggest outflows after Tech.
Only Healthcare and Energy saw inflows, soley from institutional clients.
In terms of ETFs, Hall says clients bought equity ETFs for a fifth straight week, with inflows across major styles (Blend/Growth/Value) and sizes (Small/Mid/Large/Broad Market). That said, style flows continue to skew toward Value over Growth.
Clients bought ETFs in eight of the 11 sectors, led by Materials and Healthcare; Tech ETFs also saw inflows despite single-stock outflows.
Financials ETFs saw the largest outflows.
(Terence Gabriel)
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Trade balance and GDP https://www.reuters.com/graphics/USA-STOCKS/klvyjzxzjpg/tradebalance.png
U.S. major imports https://www.reuters.com/graphics/USA-STOCKS/egvbbmzmqvq/trade-imports.png
MBA https://www.reuters.com/graphics/USA-STOCKS/lgpdqlrlxvo/MBA.png
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