UPDATE 1-U.S.-based stock, money market funds attract $19.1 bln - Lipper

Thu Jul 10, 2014 5:51pm EDT

(Adds details, analyst quotes, table)
    By Luciana Lopez
    NEW YORK, July 10 (Reuters) - Investors added more than $19
billion in new cash to U.S.-based stock and money market funds
in the latest week as the second-quarter earnings season kicked
off, data from Thomson Reuters' Lipper service showed on
Thursday.     
    Investors in U.S.-based funds committed $3.7 billion to
stock funds in the week ended July 9 after adding $3.1 billion
to the funds the prior week.
    Stock mutual funds attracted $1.5 billion in new cash, while
stock exchange-traded funds added $2.2 billion. Stock mutual
funds are commonly purchased by retail investors, while stock
ETFs are thought to represent the institutional investor.
    Money market funds posted net inflows of $15.4 billion,
their third straight week of inflows and their largest inflows
since early May.
    Investors in those funds "are saying we need to wait and see
what earnings season really looks like," said Tom Roseen, head
of research services at Lipper. 
    Moving cash into money market funds could help those
investors get ready to move further into stock funds if they see
opportunities, such as a correction, Roseen said.
    Earlier this week aluminum maker Alcoa reported
adjusted second-quarter earnings that topped Wall Street's
forecasts. The company, the first S&P 500 company to report
results each quarter, is often seen as a bellwether for the
earnings season.    
    The Standard & Poor's 500 index dipped 0.09 percent
from its close on Wednesday, July 2, through Wednesday, July 9.
That week includes the July 4th holiday, when U.S. markets were
closed.
    "People are looking at the opportunity to buy in," Roseen
said, but might be wary because "this third quarter at the very
end can be a little bit sluggish as we get into the dog days of
autumn."
    Taxable bond funds attracted net inflows of $1.5 billion,
their third straight week of inflows.     
    
 Sector                    Flow Chg  % Assets  Assets      Count
                           ($Bil)              ($Bil)      
 All Equity Funds          3.697     0.09      4,240.367   10,836
 Domestic Equities         1.454     0.05      3,134.197   7,881
 Non-Domestic Equities     2.243     0.20      1,106.170   2,955
 All Taxable Bond Funds    1.503     0.08      1,809.500   5,477
 All Money Market Funds    15.405    0.68      2,283.940   1,305
 All Municipal Bond Funds  -0.790    -0.27     290.763     1,443
 

 (Reporting by Luciana Lopez; Editing by Meredith Mazzilli,
Bernard Orr)
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