Analysis-Investors look to near $2 trillion corporate cash hoard to buoy stocks By Reuters – Investing.com

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Analysis-Investors look to near $2 trillion corporate cash hoard to buoy stocks By Reuters – Investing.com

© Reuters. FILE PHOTO: A U.S. five dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo By Lewis Krauskopf NEW YORK (Reuters) - Investors are looking to a mounting pile of cash at U.S. companies to provide support for the stock market in coming months, as executives announce plans to increase share buybacks, boost dividends or pour money back into their businesses. Cash on the balance sheets of companies has swelled to a record $1.9 trillion, compared to $1.5 trillion before the pandemic crisis in early 2020, according to Keith Lerner, chief market strategist at Truist Advisory Services. The cash hoard likely will be a key factor in investors’ calculus as second-quarter earnings season hits full swing while market participants gauge how equities respond to worries over slowing growth and a COVID-19 resurgence that sparked a rush to safe-haven Treasuries in recent days. High corporate cash balances are “a nice, subtle form of market support," said Michael Purves, chief executive officer at Tallbacken Capital Advisors. “With all the talk about markets getting ahead of themselves and aggressive valuations, this provides market support into 2022 and 2023.” Large amounts of cash give companies flexibility to