LIVE MARKETS-Buybacks likely helped in stocks' recent recovery

Reuters
Yesterday
LIVE MARKETS-Buybacks likely helped in stocks' recent recovery

Wall Street indexes fall; Nasdaq leads losses

Materials is weakest S&P 500 sector; energy leads gainers

Dollar down; bitcoin off >1% gold gains; crude up >3.5%%

US 10-Year Treasury yield falls to ~4.43%

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

BUYBACKS LIKELY HELPED IN STOCKS' RECENT RECOVERY

Corporate buybacks were likely among the catalysts that helped the U.S. stock market recover from the April lows, writes Adam Turnquist, chief technical strategist for LPL Financial in Charlotte, North Carolina.

S&P 500 companies have a significant amount of stock to repurchase, and they were active in executing those programs in the first quarter, he says in a recent note.

Buybacks tend to boost stock prices because they reduce the number of shares outstanding.

In aggregate, announced buyback programs among S&P 500 .SPX constituents hit roughly $750 billion year-to-date as of June 5, he writes, noting that "this is well ahead of the total authorized repurchase value reached as of early June during prior years."

For example, he writes, by early June 2023 and 2024, companies had only authorized around $600 billion in buybacks.

He says that the bulk of stock repurchase announcements this year were from a few sectors, with $210 billion from communication services, $200 billion from financials and $196 billion from technology.

(Caroline Valetkevitch)

*****

EARLIER ON LIVE MARKETS:

BOFA CLIENTS PREFERRING DOMESTICALLY ORIENTED SECTORS VS GLOBALLY EXPOSED GROUPS CLICK HERE

WAITING FOR THE CHICKENS TO COME HOME TO ROOST: CPI, BARELY CHANGED, TARIFF EFFECT A NO-SHOW CLICK HERE

WALL STREET NEARING RECORDS; TRUMP SAYS US-CHINA DEAL DONE CLICK HERE

IF NOT SWEET, DOGE SPENDING CUT IMPACT LIKELY TO BE SHORT CLICK HERE

SEAS OF CONTENTION: THE NEXT FRONT IN THE US-CHINA TRADE CONFLICT ISN'T ON LAND CLICK HEREUS STOCK FUTURES RISE, YIELDS SLUMP, AFTER COOLER-THAN-EXPECTED CPI CLICK HERE

CITI'S POSITIVE VIEW ON EUROPE TURNS MORE STRUCTURAL CLICK HERE

AND CPI MATTERS AGAIN, HOW 2024 CLICK HERE

EUROPE'S SMALL CAPS LEADING THE RECOVERY CLICK HERE

INDITEX DRAGS ON RETAIL, BRITISH HOMEBUILDERS GOING UP CLICK HERE

EUROPE BEFORE THE BELL: STOCKS SHRUG OFF HEFTY NEWS FLOW CLICK HERE

MORNING BID: SO, IT'S A FRAMEWORK FOR A DEAL, MAYBE? CLICK HERE

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10