Article_Normal, Buybacks

Stock buybacks top $200 billion in April, the second-highest monthly total since Trump’s tax cuts

Stock buybacks top $200 billion in April, the second-highest monthly total since Trump’s tax cuts

5/7/2021 3:57:00 AM
Article_Normal, Buybacks, Energy, Pharmaceuticals, Machinery, Agricultural Machinery, Airlines, Telecommunications, Health Care, Air Transport

Stock buybacks top $200 billion in April, the second-highest monthly total since Trump’s tax cuts

A near-record barrage of stock buyback programs have been announced as companies blow past first-quarter earnings estimates.

April alone saw $209 billion worth of stock repurchases announced by companies, the second-highest month on record behind the $209 billion from June 2018, following the Trump administration’s tax overhaul.Nearly four years ago, then-President Donald Trump said slashing the corporate tax rate to 21% would be like “rocket fuel for our economy.”

A Post-Truth World: Why Ronaldo Did Not Move Coca-Cola Share Price House members push for high-speed rail as part of infrastructure China is kicking out more than half the world’s bitcoin miners – and a whole lot of them could be headed to Texas

Buybacks now have come back in vogue as the economy heals from the pandemic, even as CEOs line up to battle against the Biden administration’s proposed plan to bring the corporate tax back to 28% to help pay for a $2.3 trillion infrastructure package.

“It’s going to be a big earnings season for buybacks,” said Winston Chua, an analyst at research firm EPFR, adding that buybacks have remained elevated in May and likely will stay that way for several weeks before tapering off.“Historically, share buybacks have a high correlation to the S&P 500 index,” Chua told MarketWatch. “But it’s not a pace that can be sustained.” headtopics.com

Here’s how April stacked up to other months on the buyback front.The chart also shows buybacks climbing along with the S&P 500, which booked its last record finish on April 29. It was up 11.9% on the year at Thursday’s close.The S&P 500 SPX, +0.82% on Thursday closed above the 4,200 mark for its second-highest finish ever, while the Dow Jones Industrial Average DJIA, +0.93% booked its 23rd record close of the year, more than all of 2020.

First-quarter earnings mostly have trounced optimistic estimates put forth by Wall Street, validating expectations that business would come roaring back once COVID-19 became a less disruptive force in people’s lives.Of the 419 companies in the S&P 500 that have already reported first-quarter results as of May 6, about 88% reported earnings that beat analysts’ expectations, the highest on record since Refinitiv started tracking the data in 1994.

Against this bullish backdrop, Berkshire Hathaway Inc. BRK.B, +2.46% vice chairman — and Warren Buffett’s right-hand man– Charlie Munger said share repurchases designed solely to push the price of the stock higher were immoral, but that critics of buybacks made in the interest of shareholders were “bonkers.”

Berkshire’s share repurchases were $6.6 billion in the first quarter, down from $9 billion each in the third and fourth quarters of 2020.Debt investors tend to look unfavorably on companies that borrow in the bond market to fund share buybacks that aim to push up a stock’s price. U.S. companies borrowed a record amount of debt last year during the pandemic, with proceeds mostly earmarked to refinance maturing debt at cheaper rates. headtopics.com

How Working From Home Has Changed Employees Libyan guards accused of sexually assaulting minors India posts lowest daily rise in coronavirus cases in nearly 3 months

Investment-grade companies have been dominant players in buybacks, including Apple Inc. AAPL, +1.28%, which added $90 billion to its stock repurchase program in April.The first week of May saw Eli Lilly and Co. LLY, +0.56% detail a $5 billion share repurchase plan, as well as a host of other companies announcing similar buybacks.

Read more: MarketWatch »

NASA Launches Mission Equity, Seeks Public Input to Broaden Access

NASA is launching Mission Equity, a comprehensive effort to assess expanding and modifying agency programs, procurements, grants, and policies, and examine what potential barriers and challenges exist for communities that are historically underrepresented and underserved.

Buybacks increasing signals an increased panic as CFOs try to fool boards and investors with ever impossible numbers. The sheets start to bend horrible Such a productive use of cash & convertibles. Sure, let’s keep giving large corporations bailouts and tax cuts, only to see them buy back their own stock...

This is the right time to learn about cryptocurrency investments, dm me if you’re interested in earning through mining and trading cryptocurrency ✅📈📉 still waiting for the trickle down. the people want the crumbs!! this is terrible news

Billboard Buys: Beats by Dre Offering Latest Headphones for Under $200Regularly, $349.95, Target's Beats by Dre deal has the headphones on sale for just $199 -- a whopping $150 off and the cheapest price we're seeing online

RS Recommends: The Best Bluetooth Speakers Under $200Whether you want to take your music on the road or pair your phone for a pool day, these wireless speakers deliver a ton of power for their price point Javi_OrtizC Sorry I'm not disturbing you like this😜 watch my video please 🙏🏽 share my video to your friends cheese 🧀 Hii I'm independent artist KIRAN SHINE ALMINE Wow wow Now this song is about dance 🍳 watch this video in YouTube 🤝🏼 support me friends what are you waiting for ☮ I own UE Boom 3 and JBL Charge 4, just waiting for Sonos & Google to play nice and support casting. Both are great speakers but JBL is pretty far ahead in audio quality.

HNST Stock Price | Honest Co. Inc. Stock Quote (U.S.: Nasdaq) | MarketWatchHNST | Complete Honest Co. Inc. stock news by MarketWatch. View real-time stock prices and stock quotes for a full financial overview.

Home Depot vs. Lowe’s — should you buy either stock now?Lowe's has grown more quickly during the pandemic but Home Depot has better margins and has been generous with dividend increases.

Stock futures hold steady as investors eye pipeline cyberattackFutures held steady at the start of the overnight session Sunday, suggesting the major U.S. indexes could trade near records on Monday.