Main US indexes now slightly green; Dow out front, up ~0.3%
Real estate leads S&P gainers; Comm Svcs weakest group
Euro STOXX 600 index up ~0.4%
Dollar down; crude falls >2%; gold, bitcoin both gain >1%
US 10-Year Treasury yield slides to ~4.42%
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BOFA CLIENTS GET BACK TO BUYING
BofA Securities equity and quant strategist Jill Carey Hall says that last week, with the S&P 500 index .SPX falling 1%, clients were net buyers of U.S. equities (+$4.6B) in the wake of selling the week before.
For the fourth straight week, clients bought single stocks but sold ETFs. Hall notes that BofA thinks 2025 will be a year for stock picking.
"Client buybacks remain strong despite elevated multiples/rates: Buybacks were stronger this Jan. than any Jan. since 2010, with rolling 52-week buybacks/mkt. cap still tracking at record highs," writes Hall in her note.
In terms of S&P 500 groups, Hall says clients bought eight of the 11 GICS sectors.
Communication services saw the biggest inflows (and the second-largest since the sector's inception in 2018) as earnings surprised to the upside in the sector. Tech saw inflows even with the DeepSeek concerns, but with mixed flows across client groups.
Industrials saw the largest outflows (fifth week of selling). Clients also sold materials (third largest outflow in BofA's data history since 2008), and consumer discretionary.
As for ETFs, Hall said clients sold large/small/mid/broad market ETFs and blend/value ETFs. Growth ETFs garnered inflows.
Seven of the 11 sectors saw ETF outflows, led by financials and staples ETFs.
Industrial and tech ETFs saw the biggest inflows.
(Terence Gabriel)
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FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
IS THE FED TOO STRINGENT WITH ITS 2% INFLATION TARGET? - CLICK HERE
HUMP DAY DATA: ADP, SERVICES PMI, TRADE BALANCE, MORTGAGES - CLICK HERE
MAIN U.S. INDEXES RED, BUT YIELDS TAKE A TUMBLE - CLICK HERE
NASDAQ COMPOSITE: CONFRONTING AN INTERNAL STRUGGLE - CLICK HERE
"MORE PAY": UK CONSUMER EYES BOOST - CLICK HERE
FX TRADERS' HORIZONS "AS SHORT AS THEY'VE EVER BEEN" - CLICK HERE
GOLD MINERS: MIND THE GAP - CLICK HERE
BIG GAINERS BUT STOXX 600 FLAT - CLICK HERE
EUROPE BEFORE BELL: EARNINGS KEEP YOU BUSY - CLICK HERE
MARKETS CONFOUNDED BY TRUMP'S GAZA PROPOSAL - CLICK HERE
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