International Business: US buybacks seen at record highs ahead of earnings reports – Gulf Digital News

International Business: US buybacks seen at record highs ahead of earnings reports – Gulf Digital News

US stock buybacks appear to be hitting new records as companies head into quarterly earnings season, even as some investors worry about the growing threat of inflation, a potential recession and stagnant share prices.

New repurchase announcements by US companies reached over $300 billion in the first quarter, with March showing a strong year over year increase, suggesting buybacks have remained resilient in recent weeks, according to financial data firm EPFR, Informa Financial Intelligence.

Seen as a major contributor to Wall Street's gains in the past several years, stock buybacks will be in the spotlight when results are unveiled. Companies typically buy back their shares when they are feeling confident about the future and view their stock prices as undervalued.

Investors are broadly worried about inflation and the threat of a recession on corporate outlooks, which could sour the willingness of companies to return money to shareholders in the form of big buybacks and dividends.

JPMorgan Chief Executive Officer Jamie Dimon said on Monday his bank would reduce its stock buybacks over the next year to meet capital increases required by federal rules.

Also on Monday, Starbucks Corp said it would pause billions of dollars of stock buybacks to invest more in employees and stores