BofA Says Clients Bought US Stocks for Fourth Straight Week Despite S&P 500 Dip
Summary
- BofA said its clients were net buyers of US stocks for a fourth straight week even as the S&P 500 fell 0.6%.
- It said institutional investors led the buying, with inflows concentrated in technology, financials and industrials.
- BofA said the average pace of corporate share buybacks over the past four weeks was 19% above a year earlier, supporting the stock market.
Forecast Trend Report by Period
Bank of America said its clients were net buyers of US stocks for a fourth straight week, even after the S&P 500 fell 0.6% last week, according to Walter Bloomberg on July 29.
Institutional investors led the buying. Their weekly net purchases were the largest since December 2020 and the second-largest since BofA began tracking the data in 2008. Retail investors also remained net buyers, while hedge funds were net sellers for a third straight week.
By sector, inflows were concentrated in technology, financials and industrials. Industrials posted a record net inflow after months of outflows. Communication services, energy and materials were relatively weak.
Corporate share buybacks slowed somewhat during earnings season. Even so, the average pace of buybacks over the past four weeks remained 19% above the year-earlier period, helping support the stock market, BofA said.
JH Kim
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