Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

BOFA CLIENTS REMAIN NET SELLERS AMID MARKET PULLBACK

Bank of America Securities' latest client flow data for last week paints a cautious picture. According to equity and quant strategist Jill Carey Hall, clients were net sellers of U.S. stocks for a fourth straight week as the S&P 500 .SPX fell about 2%, after an even larger wave of outflows the week prior.

Most of the selling was concentrated in individual stocks, which saw nearly $10 billion in outflows — the fourth-largest on record in BofA’s data going back to 2008. At the same time, equity ETFs pulled in about $4.2 billion, suggesting investors are favoring broader exposure over single-name bets.

Looking at positioning, institutional investors have led the selling for four consecutive weeks. Hedge funds, meanwhile, have been net buyers for a third straight week, while retail investors finally turned buyers after more than a month on the sidelines.

One notable shift — money is flowing into smaller companies. Small- and micro-cap stocks attracted record inflows, with especially strong demand via ETFs — the largest since last October — a sharp contrast to broader market weakness.

On the corporate side, buybacks are cooling. Companies have scaled back purchases for five straight weeks, bringing activity to its lowest level since February.

Sector-wise, selling has been broad, hitting nine of 11 sectors — led by tech and financials. Staples have logged the longest outflow streak, now at seven weeks. Bright spots include materials and communication services, both extending their inflow streaks.

As for ETFs, investors are leaning into value and blend strategies while trimming growth exposure. Healthcare ETFs led inflows, while tech ETFs saw particularly heavy selling.

(Terence Gabriel)

*****

EARLIER ON LIVE MARKETS:

DATA JAM: ADP, CHALLENGER GRAY, PMI, ET AL. CLICK HERE

CHIP STOCKS RETREAT AFTER RUN AS INVESTORS ROTATE CLICK HERE

JULY HAS BEEN GOOD TO U.S. EQUITY BULLS FOR 11 YEARS, CAN IT HIT 12? CLICK HERE

MARKETS DIVERGE, MOMENTUM DOMINATES CLICK HERE

HOW IPOS COULD CHANGE THE AI GAME CLICK HERE

INFLATION GIVES ECB MORE TIME, AND PERHAPS A REASON TO STOP HIKES CLICK HERE

CITI SEES NIKKEI HITTING 90,000 CLICK HERE

CAUTIOUS START TO THE QUARTER CLICK HERE