October 31, 2022 | Daily JAM, Videos |
Today I posted my one-hundred-ninety-eighth YouTube video: Trend of the Week Buybacks Fuel This Rally. This week’s Trend of the Week: Buybacks Fuel This Rally. We’re just coming out of an informal “blackout” season where about 90% of companies don’t announce any buybacks as they get closer to earning season. For most companies, that blackout ends in November. This year, stock buybacks are running at a record rate. In the first 10 months of the year, there were about $1 trillion worth of buybacks, up about 8% year-to-year. We’re going into November with buyback wind in our sales at a time when companies are sitting on a lot of cash. Plus this is the time to do a buyback if a company wants to get ahead of the 1% tax hike on buybacks starting in January. As long as we don’t run into a big extraneous event, (like a flare-up in US-China tensions), I think buybacks will keep the rally going until the end of the year.
July 17, 2022 | Daily JAM |
Given the big role that stock buybacks play in sustaining rallies and driving stock prices higher, news in earnings reports this past week that both Citigroup (C) and JPMorgan Chase (JPM) are suspending their stock buyback programs is a big deal. Not just for these big banks or for the banking sector, but also for stocks as a whole. After a huge drop in buybacks in 2020 thanks to the Pandemic recession, buybacks for the companies in the Standard & Poor’s 500 roared back in 2021 to hit a new record of more than $850 billion. That easily broke the old record of $806 billion set in 2018. Buybacks support stock prices in two ways.
November 2, 2018 | Daily JAM, Short Term |
Part--but certainly only part--of the weakness in U.S. stock prices in October came from the blackout period on companies buying back their own shares. Many companies have self-declared buyback blackout periods running from a couple of weeks before the company reports...
October 31, 2018 | Daily JAM, Morning Briefing, Special Reports |
Scary market, huh? Completely unpredictable it seems, right? Up on Tuesday October 30 with the Standard & Poor's ahead 1.57% at the close and the technology-heavy NASDAQ Composite ahead 1.58%. Quite a turn about from the previous day when the S&P 500 finished...
October 28, 2018 | Daily JAM, Volatility, You Might Have Missed |
... the return of stock buybacks to U.S. markets. It's not a cure all for recent market weakness but the return of corporate buyers will certainly help support share prices. JP Morgan projects that U.S. buybacks will hit $900 billion to $1 trillion in 2018. That's up...
February 28, 2018 | Daily JAM |
Share buybacks surged to hit record levels in the fourth quarter of 2017. U.S. companies announced $178 billion in buybacks in the quarter. That’s the largest total announcement of share buybacks in a single quarter on record, according to Birinyi Associations. Wall Street analysts are projecting that 2018 as a whole will set a record for buybacks in a year.
April 6, 2016 | Daily JAM, You Might Have Missed |
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
October 29, 2013 | Daily JAM, Morning Briefing |
The buyback magic isn’t completely gone. But it is looking like a much less powerful spell—if today’s market reaction to a big new buyback program at IBM is an indication. And that’s not good news for a market in which companies are struggling to show earnings and revenue growth
