S&P claws way to new record
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.