Main US indexes red: Nasdaq off most, down ~1.5%
All S&P 500 sectors decline; Comm Svcs weakest group
Dollar edges down, crude declines; bitcoin off >2%; gold up >1%
US 10-Year Treasury yield edges down to ~4.30%
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MARKET CORRECTION DIDN'T DISSUADE BOFA CLIENTS FROM BUYING
BofA Securities equity and quant strategist Jill Carey Hall says that last week, with the S&P 500 index .SPX falling 2.3%, and entering correction territory, clients bought U.S. equities (+$3.1B) for a seventh week in a row.
"Private & institutional clients were buyers (for the 14th straight week and first time in three weeks, respectively). This is the longest start-of-year buying streak by private clients in our data since '08, but for the last five weeks they shifted to selling single stocks vs. still buying ETFs," writes Hall in her note.
She adds that hedge fund clients sold equities for the fifth week in a row.
Corporate client buybacks ramped up, but have been tracking below typical seasonal levels for the second week after elevated buybacks for much of January and February.
Hall says clients bought stocks in nine of the 11 GICS sectors, led by energy, tech and industrials.
Clients sold communication services and staples stocks. Despite concerns over the health of the U.S. consumer, discretionary stocks saw inflows for the first time in three weeks.
Hall noted that in aggregate there were larger inflows into cyclical than defensive sectors, suggesting that clients weren't positioning for recession. A recession is also not BofA's house view.
Regarding ETFs, Hall said clients bought equity ETFs across all styles (growth/blend/value) and most sizes (large/mid/broad market). However, small Cap ETFs saw their biggest outflow since July 2022.
Meanwhile, there were ETF inflows in eight of the 11 sectors, led by financials and consumer discretionary ETFs.
Healthcare and communication services ETFs experienced the biggest outflows.
(Terence Gabriel)
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FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:
STILL MAKING EUROPE GREAT (AGAIN) - CLICK HERE
HOUSING STARTS REBOUND, INDUSTRIAL OUTPUT HEATS UP (FOR NOW)- CLICK HERE
WALL STREET SINKS WITH UNCERTAINTIES OVERSHADOWING DATA - CLICK HERE
NASDAQ COMPOSITE'S TRADABLE LOW, CAN IT LAST? - CLICK HERE
TIGHT GERMAN VOTE: "NO LESS THAN 489" - CLICK HERE
RECORD HIGH BUYBACKS HELPING UNDERPIN EUROPE - CLICK HERE
DAX TOPS THE CHARTS, GERMAN SMALLCAPS EVEN BETTER - CLICK HERE
BEFORE THE BELL: EUROPEAN FUTURES RISE, END OF SELL SIGNAL - CLICK HERE
ALL EYES ON TRUMP-PUTIN TALK, AND THEN ON CENBANK DELUGE - CLICK HERE
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