As China's economic growth declines, some analysts say Beijing may have to spend more on infrastructure, adding to concerns about high debts.China Economyread more
U.S. President Donald Trump said Tuesday that Washington and Beijing have a long way to go on trade, adding that America could place tariffs on an additional $325 billion...Asia Marketsread more
"The charts, as interpreted by Carley Garner, suggest that the upside in the stock market has gotten more limited," Jim Cramer says.Mad Money with Jim Cramerread more
John Paul Stevens, who served on the Supreme Court for nearly 35 years and became its leading liberal, has died.Politicsread more
The largest U.S. banks are scrutinizing members of the Federal Reserve for any insight into how the central bank will tinker interest rates.Banksread more
The U.S. and China restarted their trade talks, but signs are showing a comprehensive deal could be a long way off, if it happens at all.Marketsread more
The WTO ruling recognized that the United States had proved that China used state-owned enterprises to subsidize and distort its economy. But the U.S. must accept Chinese...World Economyread more
Facebook's cryptocurrency project has already been met with skepticism from policymakers around the world.Technologyread more
Stone, 66, a notorious Republican political operative who has described himself as a "dirty trickster," had previously been dressed down by the judge for his public remarks...Politicsread more
Delta is gathering more data from customers than ever in hopes of avoiding customer service problems and increasing customer satisfaction, its CFO says.At Workread more
The Biden team's second-quarter Federal Election Commission filing shows that the campaign wrote a check of just over $5,300 on June 28 to Sheehan Associates for "strategic...2020 Electionsread more
Stocks are riding high in 2019 thus far, but recent gains have mostly come through buybacks and inflows into exchange-traded funds while individual equities have been shunned, data compiled by Bank of America Merrill Lynch show.
Buybacks last week totaled more than $1.4 billion and are now up 58 percent year over year, on pace for a record year, according to the data. Meanwhile, ETFs saw inflows of $854 million last week, up from $168 million the previous week. Still, U.S. investors were net sellers of U.S. equities for the second straight week as single-stock sales totaled $1.481 billion between Feb. 25 and March 1.
The registered its ninth weekly gain in 10 last week despite the outflow, adding to its sharp gains this year and since the massive fourth-quarter sell-off.
"The fund flows show you that, while we've had a solid recovery off the Dec. 24 lows, the participation rate — both institutionally and by retail investors — has not been there," said Art Hogan, chief market strategist at National Securities. "You're seeing this V-shaped recovery in markets and yet positioning is still very light."
Institutions sold individual stocks in every sector except materials and utilities last week, while retail investors dumped individual equities across all sectors. At the same time, institutions bought into ETFs from every sector except consumer staples, communication services and industrials.
Retail investors put money to work in ETFs across all but two sectors: consumer discretionary and financials.
Still, the S&P 500 has rallied more than 11 percent in 2019 after dropping more than 9 percent in December. Apparent progress in trade negotiations between the U.S. and China has lifted equity prices during that time. CNBC learned through sources on Monday that talks between the two countries were in the "final stages. "
The Fed has also expressed patience in monetary policy decisions moving forward, boosting stocks in the process.
And while the rally has taken place with lots of money on the sidelines — potentially serving as an indicator that equities could go up more — National's Hogan said the "psychology behind" investors holding dry powder is "just as important."
"There is a feeling that the bull market is running out of steam. There's a misunderstanding that bull markets die of old age. They don't, but that's clearly part of the psychology," Hogan said. Also, "that abrupt sell-off we saw in December still has reverberations in the marketplace. The short-term muscle memory of how quickly things collapsed is still there, even though some of the things that caused it have reversed."