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Support for Buybacks Is Driving Price Action In Financials

Updated: Jul 6, 2021

Financial stocks led the S&P 500 higher today as excess reserves and capital are likely to keep supporting share buybacks.



Financial stocks led the S&P 500 higher today as excess reserves and capital are likely to keep supporting share buybacks, offsetting concerns about regulatory scrutiny from the Biden administration. The S&P 500 Financials Index is up 2.5%, compared with a 1.7% gain for the broader S&P 500.


Since the beginning of December, companies in the S&P 500 Financial Sector have announced buyback programs worth more than $57 billion, compared with just $5.4 billion in the same period a year earlier. Just this week, Synchrony Financial and Capital One have said they’re planning $1.6 billion and $7.5 billion worth of buybacks, respectively.


Morgan Stanley reported a 51% increase in 4Q profits, posting gains in trading as well as mergers and acquisitions

Financial Services Companies’ Buyback Programs Earnings results for some of the banks are also boosting the shares. Here are some examples:

* Morgan Stanley reported a 51% increase in 4Q profits, posting

gains in trading as well as mergers and acquisitions

* Goldman Sachs’ results over the same time framer came in more

than double the numbers from a year-earlier, with annual revenue

soaring to an 11-year high

* JPMorgan, the biggest U.S. bank, reported a 42% jump last

quarter and said total allowances for credit losses fell by

nearly $3 billion from the previous quarter. The firm also

announced a $30 billion buyback program on Dec. 18Welcome to your blog post. Use this space to connect with your readers and potential customers in a way that’s current and interesting. Think of it as an ongoing conversation where you can share updates about business, trends, news, and more.

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