BofA clients keep an open line to communication services
Main U.S. indexes surge; Nasdaq up ~2.3%
Tech leads S&P 500 sector gainers; Energy sole loser
Dollar, gold slip; crude off ~2%; bitcoin up ~4%
U.S. 10-Year Treasury yield falls to ~3.85%
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BOFA CLIENTS KEEP AN OPEN LINE TO COMMUNICATION SERVICES
For the first time in five weeks, clients were net buyers of U.S. equities, BofA Securities equity and quant strategist Jill Carey Hall says in her latest report on equity client flows.
According to Hall, last week, client net buying was +$5.8 billion, while overall inflows ranked as the 10th-largest in BofA's post-'08 data history.
"Clients were net buyers of single stocks and equity ETFs, with larger inflows in the former. All sizes (large/mid/small caps) saw inflows (for a third straight week for large caps and second straight week for small/mid caps)," writes Hall in her note.
In terms of the 11 GICS sectors, tech and communication services saw the largest inflows. With this, communication services continues to have the longest buying streak at 19 straight weeks, while tech saw inflows for the first time in four weeks.
Hall says that seven of the 11 sectors saw inflows last week, and that financials enjoyed their biggest inflows since April. Clients offloaded energy, staples, real estate and utilities stocks.
Energy has the longest recent selling streak, at three weeks in a row. The industrials sector saw its biggest inflows since March.
Regarding ETFs, there were inflows across all styles (growth/value/blend) last week, along with large cap/broad market ETFs. However, small/mid cap ETFs saw outflows.
Hall notes that, "Our client flows have tended to weaken in the fall months. We also expect continued equity volatility heading into the US election."
(Terence Gabriel)
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