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Companies buying back their own shares is the only thing keeping the stock market afloat right now

“The numbers showing where each side put their cash in the second quarter are striking” writes Andrew Harrer for cnbc.com. “Corporate cash is going to find a home, and it’s either going to be in buybacks, dividends or M&A activity.At the same time, investors dumped $23.7 billion in stock market-focused funds in June, also a new record.Dow components Nike and Walgreens Boots Alliance led the most recent surge in buybacks, with $15 billion and $10 billion, respectively, last week.Companies announced $433.6 billion in share repurchases during the period, nearly doubling…

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Friday marks the six-month anniversary of President Trump signing the bill known as the Tax Cuts and Jobs Act, and both Republicans and Democrats marked the day by trying to spin so far.

“The economy was improving for a long time before the tax cuts passed” reports washingtonexaminer.com. But Republicans were counting on the tax cuts to become more popular as workers saw their paychecks grow.Allowing the trillions of corporations’ foreign earnings to move freely back into the U.S. was a key motivation for the tax law.Stock buybacks: Companies more than $480 billion in corporate buybacks since the tax law passed, according to Senate Democrats.But that is not necessarily attributable to the tax law. Source: washingtonexaminer.com Share This:

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SEC Commissioner Calls for Review as Buybacks Surge to $4.7 Billion a Day

“Some $4.7 billion has been spent on stock buybacks daily in 2018 on average, up from $2.2 billion daily in 2017, according to TrimTabs Investment Research” writes Taylor Nicole Rogers for thestreet.com. “Over the long-run, the current stock buybacks will likely mean lower potential returns for investors,” said Joshua Escalante Troesh, a professor of entrepreneurship and personal finance at El Camino College in Torrance, California.The SEC’s rules on how much stock executives can sell during stock buybacks are long overdue for a review, Commissioner Robert Jackson Jr. said during a speech…

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Corporate executives are using stock buybacks to pad their own compensation, according to the SEC

“Corporate executives are using tax cuts and share buybacks to boost their own compensation, a top regulator said Monday” writes Adam Jeffery for cnbc.com. Companies have announced a record-breaking level of share buybacks since Congress passed the Republican-backed tax reduction in December.Critics of the $1.5 trillion measure had worried that it would lead to big rewards for shareholders and only limited benefit to the broader economy. Robert Jackson Jr., a member of the Securities and Exchange Commission, said corporate bigwigs have been selling their shares after the buyback announcements hit,…

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Tech leads stock-market buyback boom with companies on track to put trillions back in investor hands

“The tech sector continues to lead the S&P 500, with a gain of more than 13% versus 2.7% for the broader index” writes Deputy Markets Editor for marketwatch.com. Overall, seven of the S&P 500’s 11 sectors are seeing flow that exceeds 10% of market cap: health care, tech, energy, real estate, telecom, utilities and staples.Announced buybacks in the tech sector are up $160 billion, or 200%, in 2018 (with Apple Inc. Source: marketwatch.com Share This:

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S&P 500 companies return $1 trillion to shareholders in tax-cut surge

“S&P 500 companies have also plowed some of the windfall from lower taxes into investments toward growth or becoming more efficient” writes Midwest Communications Inc for 95kqds.com. Earnings per share of S&P 500 companies surged 26 percent in the March quarter, boosted by the Tax Cuts and Jobs Act passed by Republican lawmakers in December.In the 12 months through March, S&P 500 companies paid out $428 billion in dividends and bought up $573 billion of their own shares, according to S&P Dow Jones Indices analyst Howard Silverblatt.SAN FRANCISCO (Reuters) –…

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Warren Buffett applauds Apple’s share buybacks

“Warren Buffett on Saturday applauded Apple Inc.’s AAPL, +3.92% share repurchase program, noting that as shares are bought back, Berkshire Hathaway’s BRK.A, +1.93% BRK.B, +2.10% stake grows on its own” writes William L for marketwatch.com. Apple, which was already an aggressive purchaser of its own shares, announced a $100 billion buyback program earlier this week. Buffett on Friday revealed that Berkshire had added 75 million Apple shares to its portfolio in the first quarter, building on an already sizable stake. Source: marketwatch.com Share This:

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Apple plows U.S. tax cuts into record share buybacks

“Apple said its dividend increase would be reflected in a cash dividend of 73 cents per share payable on May 17” writes Noel Randewich for reuters.com. The decision to turn over record amounts of cash to shareholders was a direct results of the Tax Cuts and Jobs Act passed by Republican lawmakers in December.As a result, analysts had expected Apple to repatriate most of its $252 billion in cash abroad.The first quarter of 2018 was the biggest quarter on record for buyback announcements, with $242.1 billion worth of buybacks announced…

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Plows tax cuts into record share buybacks…

“Apple said its dividend increase would be reflected in a cash dividend of 73 cents per share payable on May 17” writes Noel Randewich for reuters.com. The decision to turn over record amounts of cash to shareholders was a direct results of the Tax Cuts and Jobs Act passed by Republican lawmakers in December.As a result, analysts had expected Apple to repatriate most of its $252 billion in cash abroad.The first quarter of 2018 was the biggest quarter on record for buyback announcements, with $242.1 billion worth of buybacks announced…

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