LIVE MARKETS-BofA clients buy the dip

Main US indexes dip; Nasdaq off ~0.4% Materials leads sector gains; Utilities weakest group Euro STOXX 600 index up ~0.1% Dollar edges up; gold rises 0.3%; crude off ~1%; bitcoin down ~1.5% US 10-Year Treasury yield edges up to ~4.21% Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at BOFA CLIENTS BUY THE DIP BofA Securities equity and quant strategist Jill Carey Hall says that last week, with the S&P 500 index (.SPX) falling 2.4%, clients were net buyers of U.S. equities (+$1.7 billion) after selling in the previous week. “All major client groups were buyers, led by institutional clients (first inflows in six weeks). Hedge funds were small net buyers after selling the prior week and private clients were buyers for the 5th straight week (and the 32nd time in 34 wks),” writes Hall in her weekly note. She adds that corporate client buybacks increased slightly, but were below typical seasonal levels for the fifth week, and as a percentage of market cap have been decreasing since March. Hall says that clients snapped up stocks in eight of 11 sectors after selling stocks in most sectors the prior week. In aggregate, clients bought both cyclicals and defensives with cyclicals experiencing their biggest weekly inflows since January 2019. Financials saw the largest inflows followed by healthcare, industrials and energy. And after an 11-week selling streak, clients finally bought utilities. Communication services saw the largest outflows followed by consumer discretionary and real estate. In terms of ETFs, Hall says clients sold equity ETFs for the first time in nine weeks, with outflows across blend/growth ETFs. Value ETFs saw a 26th week of inflows. Clients offloaded ETFs in six of the 11 sectors, led by staples, real estate, and industrials. Technology ETFs scored the biggest inflows (first inflows since mid-June). (Terence Gabriel) EARLIER ON LIVE MARKETS: A 50 BPS CUT BY FED IN SEPTEMBER? BIG BANKS SAY MAYBE CRYPTO MINER MARA, PARAMOUNT TOP THE HIGHLY-SHORTED CHARTS CLICK HERE WALL STREET IS RED IN RESPONSE TO DATA, EARNINGS CLICK HERE IS MOMENTUM COMING UP LAME? CLICK HERE PHARMA FACES U.S. PRICING FOG, NOT EARNINGS SHOCK – UBS CLICK HERE WHEN THE FED CUTS, THE ROOF RISES: BCA BETS BIG ON REAL ESTATE CLICK HERE TIME TO HEDGE EXPOSURE TO EURO ZONE BANKS: CLICK HERE CROWDED TRADES, THIN ICE: KAIROS EYES 5–8% PULLBACK CLICK HERE STOXX 600 CONTINUES CAUTIOUS REBOUND CLICK HERE EUROPE BEFORE THE BELL: THE COMEBACK CONTINUES CLICK HERE BAD NEWS IS GOOD NEWS FOR MARKETS CRAVING FED ‘ROCKET FUEL’ CLICK HERE