TD Ameritrade’s index of investor sentiment rose in June after two straight monthly declines, and the Omaha-based online stock brokerage said buying activity favored Costco, Bank of America and Wells Fargo.
Clients were net buyers of stocks and sold fixed-income mutual funds and exchange traded funds. The stock buying coincided with the Standard & Poor’s 500 hitting a June low that was down almost 6 percent from the record high reached in May.
“After dialing back equity market exposure in May, many clients treated the dip in June as a buying opportunity and increased their equity market exposure,” TD Ameritrade said. “June’s ... reading was at the high end of a more than three-year history.”
The company said its Investor Movement Index rose to 5.15 in June from 5.02 in May. The index is created by analyzing and averaging the holdings, positions, trades and other data from TD Ameritrade’s 6 million customers. The information is then boiled down to an index; a rising index suggests bullish sentiment, a falling one bearish.
TD Ameritrade, employer of about 2,000 people in the metro area, makes money when brokerage customers trade stocks by collecting a fee on each one. The company also earns money from investing cash balances in customer accounts.
The company’s own shares have been on a hot run, having risen about 58 percent so far in 2013. Shares of main rivals in the discount-brokerage industry also have risen so far this year — by about 53 percent at Charles Schwab and about 52 percent at ETrade Financial — amid renewed investor activity spurred by a surging stock market.
The Standard & Poor’s 500 has risen about 16 percent so far in 2013 and reached a record high, while the Dow Jones industrial average is up about 17 percent and this year closed above 15,000 for the first time.
TD Ameritrade said buying activity also favored electric car maker Tesla Motors, Freddie Mac and Fannie Mae.
Investors, TD Ameritrade said, lightened positions in Microsoft, Cisco Systems and General Electric.