Wednesday, August 01, 2007

Where Money is Flowing in the Dow Stocks

Here we can see an update of the five-day composite money flows into the Dow 30 Industrial stocks. We're seeing for the first time since 2006 net outflows from those stocks.

(Note: Due to the repeal of the NYSE uptick rule, it is likely that money flow--like the NYSE TICK--has shifted downward in recent weeks. This may also be contributing to the weakness of the data).

Not all stocks are showing outflows over the past ten trading sessions, however.

The stocks with net money inflows over the past two weeks are: AA, AXP, C, CAT, GE, HPQ, INTC, JNJ, KO, MMM, MO, MRK, and VZ.

Stocks with net outflows are: AIG, BA, DD, DIS, GM, HD, HON, IBM, JPM, MCD, MSFT, PFE, PG, T, UTX, WMT, XOM.

Outflows from XOM have been especially consistent, despite recent high prices in crude oil futures. The greatest outflows have been from JPM, no doubt a reflection of credit worries. PFE, WMT, MCD, and BA have also seen solid outflows.

The strongest inflows have been into C, interestingly enough. AA, INTC, and MRK have also seen strong inflows.

If we are indeed putting in a bottom here, we should see a distinct improvement in money flows coming shortly. I will be watching closely for that and reporting here.


Behind the Market's Weak Money Flows