(Reuters) – U.S. equity funds saw their third successive money inflows in the week to Aug. 11, boosted by strong second-quarter earnings, positive economic data and passage of an infrastructure bill.
Data from Lipper showed U.S. equity funds had attracted inflows worth $2.67 billion in the week.
About 73% of U.S. firms have beaten analysts’ profit estimates in the second quarter, posting an average growth of 130% so far, according to Refinitiv data.
(GRAPHIC: Fund flows into U.S. equities bonds and money market – https://fingfx.thomsonreuters.com/gfx/mkt/gdvzyrzzdpw/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market.jpg)
U.S. growth funds had inflows worth $1.1 billion after seeing outflows in the previous week, while outflows from U.S. value funds reduced sharply.
Among sector funds, financial sector funds lured a net $1.4 billion, the biggest weekly inflow in over two months.
U.S. stock indexes climbed higher this week, helped by the U.S. Senate’s passage of a $1 trillion bipartisan infrastructure package. The bill, which now heads to the House of Representatives, could provide the nation’s biggest investment in decades in roads, bridges, airports and waterways.
(GRAPHIC: Fund flows into U.S. growth and value funds – https://fingfx.thomsonreuters.com/gfx/mkt/akvezgddnpr/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg)
(GRAPHIC: Flows into U.S. equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/jnvwegqqavw/Flows%20into%20U.S.%20equity%20sector%20funds.jpg)
Meanwhile, U.S. bond funds pulled investments worth a net $8.05 billion, a 23% increase over the previous week.
U.S. inflation-protected funds obtained $535 million, which was their third consecutive inflow. On the other hand, U.S. mortgage funds faced outflows worth $552 million, which was their sixth straight week of net selling.
U.S. money market funds received inflows of $10.2 billion in the week, underscoring lingering coronavirus concerns.
(GRAPHIC: Flows into U.S. bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/zgpomwqqapd/Flows%20into%20U.S.%20bond%20funds.jpg)
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Jonathan Oatis)
