Corporate America’s Taste for Buying Back Its Own Stock Is Waning
- Buybacks are falling in reversal from last year’s record binge
- Goldman cuts forecast for S&P 500 repurchases, eyeing 15% drop
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Corporate America, one of the few reliable purchasers of equities in this bear market, is retreating from its buying binge, fresh evidence that the Federal Reserve-induced slowdown is taking a toll on business sentiment.
US firms have announced plans to spend $580 billion on their own stock this year through Monday, down 8% from the same period a year ago, according to data compiled by Birinyi Associates. That’s a shift from January, when buybacks were off to a record start.