‘How is this possible?’ Analysts puzzle over stock market’s rally amid equity-fund exodus

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

United States News News

United States United States Latest News,United States United States Headlines

U.S. stocks at the end of March posted their best quarter in nearly a decade, but they did so without help from investors in U.S. stock mutual funds and exchange-traded funds

, which have seen sizable outflows since the start of the year, according to data from Lipper and EPFR global.

Woodward and his colleagues theorized in a Thursday research report that the divergence between outflows and outsize gains, perhaps, can be explained by corporate buybacks, as S&P 500 firms have repurchased $227 billion of their own stock in the first quarter of 2019, according to FactSet data, up from $143 billion in the first quarter of 2018.

So-called call option buying and put selling can push up stock prices as brokers hedge their bets by buying the underlying stocks in which they’ve sold call options or futures, or bought put options. Call options provide the owner the right but not the obligation to buy an asset at a given price and time, while put options grant the holder the right to sell the underlying asset.

Indeed, 6.158 billion shares changed hands on the Nasdaq and the New York Stock Exchange and its affiliates on Friday, marking the second-lowest volume thus far in 2019, according to Dow Jones Market Data.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

that picture about sums up the uber bears - who after all these years whine about the Central Banks inflating asset prices, and yet think the outcome of those actions are negative for the stock market..

thanks for updates marketwatch

FTSE

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Airline stocks could still rally another 20% this year, analyst saysAirline stocks have taken off after strong earnings guidance from Delta, and some market watchers see more runway ahead of the group. very doubtful
Source: CNBC - 🏆 12. / 72 Read more »

This is the 'canary in the coal mine' for stocks, market analyst warnsMajor gains in the first three months of the year have brought indexes back within range of record levels. One market analyst says be weary of the market bounce as there are troubling developments on the horizon. Rumor has it the Democrats are running around with taxidermy trying to crash the market.
Source: CNBC - 🏆 12. / 72 Read more »

Stock market trades at session low with energy sector, Boeing's stock weighingThe stock market traded at session lows with about two hours left in regular trade Wednesday afternoon. There appeared to be no direct catalyst for the...
Source: MarketWatch - 🏆 3. / 97 Read more »

Chip stocks can 'bust through' to new highs if investors stay bullish on 5G: AnalystSemiconductor stocks are up nearly 30 percent this year, and one expert says the advent of 5G could push them even higher. Yes China chips:)
Source: CNBC - 🏆 12. / 72 Read more »

Tobacco stocks drop as FDA probes possible link between seizures and vapingTobacco stocks dipped Wednesday after the FDA announced it's investigating nearly three dozen cases of people experiencing seizures after vaping. Vaping is a very concerning problem. One disease that it can be linked to is popcornLung and the nicotine can kill a person it is not a controlled drug. Congress Senate WhiteHouse POTUS RealDonaldTrump GOP RNC DNC NBC CNN CBS ABC FoxNews MANBC ***Tobacco Stocks Drop As: SEIZURES ARE LINKED TO VAPING! Not a vapor user, but suspect that the vaping seizures are from illicit content being vaped, rather than the legal “over-the-counter”.
Source: CNBC - 🏆 12. / 72 Read more »