S&P claws way to new record

The Washington Post Sunday - - MARKETS -

Even as the Stan­dard & Poor’s 500-stock in­dex clawed its way to a fresh record and squeezed out a third con­sec­u­tive weekly gain, signs of fad­ing en­thu­si­asm in U.S. stocks have grown dif­fi­cult to ig­nore.

The lat­est can be seen in the SPDR S&P 500 Trust, the big­gest ex­change-traded fund track­ing the U.S. eq­uity bench­mark. As of Thurs­day, in­vestors had pulled $3.8 bil­lion out of it in July. The fund is on pace for a fourth monthly out­flow, which would be the long­est streak since the start of the bull rally in 2009.

Traders also took $2.1 bil­lion out of U.S. mu­tual funds and ETFs in the week ended July 12, In­vest­ment Com­pany In­sti­tute data show. That com­pared with $5.1 bil­lion that went into funds glob­ally. Bank of Amer­ica Edi­tor’s note: Go­ing for­ward, our weekly com­pos­ite stock list­ing highlights com­pa­nies based in Wash­ing­ton or with a strong pres­ence here. The rest of the ta­ble shows firms as ranked by mar­ket cap­i­tal­iza­tion. And we’ve added year-to-date data be­cause read­ers told us it would be use­ful. Mer­rill Lynch’s most re­cent fund man­ager sur­vey found al­lo­ca­tion to U.S. stocks is the most un­der­weight since 2008.

“We’re not bear­ish, it’s just a ques­tion of bet­ter growth with lower val­u­a­tions else­where,” said Ed Keon, port­fo­lio man­ager at Quan­ti­ta­tive Man­age­ment As­so­ci­ates.

The Trea­sury will sell $39 bil­lion of three month bills and $33 bil­lion of six month bills Mon­day. They yielded 1.17 per­cent and 1.11 per­cent in when-is­sued trad­ing. It will sell four-week bills and $26 bil­lion of two-year notes Tues­day; $15 bil­lion of two-year float­ing-rate notes and $34 bil­lion of five-year notes Wed­nes­day; and $28 bil­lion of sev­enyear notes Thurs­day.

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