Between Buybacks And Dividends, Latter Rewards Shareholders Better

posted in: Economy, Equities, Technicals | 0

One of the hallmarks of post-Great Recession recovery has been subdued capital expenditures.  In 2Q16, real non-residential fixed investment was $2.19 trillion (at a seasonally adjusted annual rate) – essentially flat since 3Q14.  Investment peaked at $2.22 trillion in 3Q15. … Continued

As Goes Crude Oil, So Go Stocks Near Term

posted in: Commodities, Equities, Technicals | 0

Crude oil sits at a critical juncture.  Depending on which way it breaks probably decides stocks’ path of least resistance near term. Last week, OPEC announced its commitment to cutting output to between 32.5 million barrels per day and 33 … Continued

June Corporate Bond Issuance Slows Down, 2H A Toss-Up

posted in: Credit, Economy | 0

The pace of U.S. corporate bond issuance slowed in June. Corporations issued $110.8 billion in non-convertible debt and $3 billion in convertible debt last month. Of non-convertible debt, which is what Chart 1 portrays, investment-grade (IG) was $86.8 billion and … Continued

U.S. Stocks Increasingly Reliant On Buybacks, Even As ’15 SPX Earnings Set To Drop Y/Y

posted in: Credit, Equities | 0

Late last year as the Federal Reserve was unwinding quantitative easing (QE), there was suspense in the air as to how this might impact U.S. stocks.  Bulls argued QE was never a factor in stocks’ surge, rather earnings were.  Bears … Continued

Buyback-induced breakouts — signal or noise?

posted in: Economy, Equities, Technicals | 0

GE stages massive breakout Friday on back of massive buyback announcement S&P 500 companies splurged $565 billion on share repurchases in 2014 As/when buybacks dry up, support zones become more vulnerable Before last week, GE shares had been on a … Continued