As S&P 500 earnings staged massive recovery from post-pandemic lows, buybacks are back in fashion. Thus far in 4Q, the index is already up north of nine percent, pricing in a lot of seasonality optimism. As things stand, the index … Continued
Major US equity indices are diverging. The S&P 500 is itching to once again break out, even as the Nasdaq 100 acts tentative. Tech has suffered technical damage, and without the sector’s participation, it is hard to imagine the S&P … Continued
The S&P 500 closed 2020 with a new high. Momentum was very strong in November and December. In the past, more gains followed in the following year. For that, several things have to fall into place, including how flows, margin … Continued
Company buybacks are having quite a bit of a dry spell. As corporate boards act thrifty this year, it has not had much impact on stocks. The buyback shortfall is being offset by bulled-up foreigners and investor willingness to take … Continued
On a 12-month basis, foreigners’ purchases of US equities dropped slightly in July, with June the highest since April 2010. If this represents a turn in their sentiment, this will have come at a time when buybacks are no longer … Continued
S&P 500 buybacks declined substantially in the second quarter. The trend is likely to persist. Historically, the S&P 500 and buybacks move in tandem. The two have diverged big time in the current quarter. As the hitherto tailwind turns into … Continued
S&P 500 companies spent $198 billion in buybacks in 1Q, up 9.3 percent sequentially. Given the uncertainty surrounding stocks and the economy, this must come as a nice surprise. Concurrently, there has been a jump in recent months in C&I … Continued
The buyback bonanza that persisted for years is coming to an end this year. It only makes sense that SPYB will lag SPY, but the ratio between the two broke out of one-month consolidation on Wednesday. This shows that, after … Continued
In the current bear market, the S&P 500 is down nearly 34 percent, which is the 8th worst out of 14 going back to 1929. It is too soon to say if THE low is in. After the March 23rd … Continued
The sell-side is beginning to revise earnings estimates lower. But looking at the disruptions caused by the coronavirus, more downward revisions probably lie ahead. Company boards will be looking to conserve cash, with dividends and buybacks likely targets – the … Continued