Share buybacks (also called stock buybacks or stock repurchases) are a common way for a publicly traded company to deliver value to its shareholders. As the name implies, a share buyback is a board-approved action that allows a company to buy shares of its own stock on the secondary market. The reason that share buybacks benefit shareholders comes down to supply and demand. By buying its own shares, the number of outstanding shares decreases and the price of each share increases. This theoretically increases demand and drives an even higher share price. That’s why companies that issue share buybacks are often a favorite of investors, particularly long-term investors. .
Stocks were mixed and mostly unchanged on the first day of August. The Dow posted a slight gain bolstered by a strong earnings report by Caterpillar. The Nasdaq and S&P 500 both finished slightly in the red.
Manufacturing is the latest sector to send the market conflicting signals. Factory orders look to be gradually improving, but factory employment hit a three-year low. Investors will be watching to see if that weakness will extend throughout other sectors when the jobs report comes out on Friday.
Overall, however, the bulls remain in control as we enter into what is typically one of the quieter months of the year. That could change quickly when Apple reports after the market closes on Thursday. The S&P 500 has been flirting with 4,600 for about a month and positive results from the tech giant could send the index to new highs.
Share buybacks (also called stock buybacks or stock repurchases) are a common way for a publicly traded company to deliver value to its shareholders. As the name implies, a share buyback is a board-approved action that allows a company to buy shares of its own stock on the secondary market. The reason that share buybacks benefit shareholders comes down to supply and demand. By buying its own shares, the number of outstanding shares decreases and the price of each share increases. This theoretically increases demand and drives an even higher share price. That’s why companies that issue share buybacks are often a favorite of investors, particularly long-term investors.
Graphite - not lithium - is the largest component of lithium-ion batteries used in electric vehicles. That's why 97 more graphite mines will be needed by 2035 just to keep up with battery demand for the $7 trillion EV market.
Starbucks reported record revenue in its fiscal third quarter as its China business roared back to life.Still, the company's results were mixed for the 13 weeks ending July 2. While its earnings surpassed Wall Street's forecast, its revenue and same-store sales were lower than expected as North American store traffic slowed.Starbucks shares were down 1% in after-market trading Tuesday.Same-store sales — or sales at stores open at least a year — jumped 46% in China, reversing last year's declines due to COVID restrictions. At Chinese stores opened in 2019 or earlier, morning routines are fully ...
Artificial intelligence (AI) means different things to different industries. For investors, it can be confusing and even a little suspicious, as companies are bending over backward to tout their AI capabilities to investors. That’s why a better way to invest in the growth of AI is to invest in semiconductor stocks. Semiconductor chips are the backbone of AI. From robotics to autonomous driving to data analysis, demand for processing power and speed will be precedented to fuel the growth of AI. And this growth will be measured in years and perhaps decades. So it’s possible that investors are at the beginning of a super cycle for chip stocks.
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Crumbling COVID-19 vaccine and treatment sales chopped Pfizer's second-quarter earnings, but both the drugmaker and Wall Street expect a rebound in the back half of 2023.Pfizer recorded no U.S. sales of its treatment, Paxlovid, in the recently completed quarter, as the company shifts to selling the pills on the commercial market after contracting with the government.Paxlovid brought in only $143 million total sales during the quarter after recording $8 billion in last year's quarter.Sales of the vaccine Comirnaty also slid 83% to $1.49 billion in the quarter, as both products fell short of Wall Street expectations.Both Pfizer's leaders and analysts who follow the company had expected a sales drop in the quarter as inventories already on the market were used up.
Recently, high short-interest stocks have emerged as a strong market theme, gaining significant attention from investors and analysts alike. Companies such as Carvana (NYSE: CVNA), Rivian (NASDAQ: RIVN), and Enovix (NASDAQ: ENVX) have been at the forefront of this, witnessing a remarkable surge in their stock prices while facing elevated levels of short interest. The interplay between bullish investors and short sellers has intensified, leading to an intriguing and volatile landscape where these companies' shares have soared to unprecedented heights in the short term. As the tug-of-war continues, the market remains captivated by the drama surrounding these high short-interest stocks. As a result, being prepared with a list of high short-interest stocks is a good idea right now.
He called the Priceline collapse in 2012, the 2020 crash, and the 2022 bear market. Now he says a new dawn is coming to U.S. stocks. It’s time to throw out the investment blueprint of the last decade and prepare for a massive shift. If you’ve lost money over the past two years, this changes everything.
U.S. employers posted fewer jobs in June, a sign that the red-hot demand for workers that has been a key feature of the post-pandemic economy is cooling a bit. Job openings dropped to 9.6 million in June, the Labor Department said Tuesday, down slightly from the previous month but much lower than the 10.3 million in April and the fewest in more than two years. The government's report also showed that the number of people who quit their jobs in June fell sharply to 3.8 million, from 4.1 million, another sign the job market is slowing. The Federal Reserve is seeking to cool hiring because if companies are less desperate to add workers, and fewer people are quitting to seek higher-paying positions elsewhere, then businesses will be under less pressure to raise pay to find and keep workers.
As the technology sector continues to drive the market's impressive surge this year, it becomes crucial to familiarize ourselves with the leading and most popular tech-focused exchange-traded funds (ETFs). Understanding their highest-weighted players and unique offerings can provide valuable insights into the sector's dynamics, given its current leadership in the market. As tech's dominance remains evident, exploring these ETFs becomes essential for investors seeking to capitalize on the sector's potential future growth and impact on overall market performance. You might be wondering, why should I invest in an ETF when I can just focus on an individual stock? Investing in ETFs offers instant diversification, reducing risk and providing cost-efficiency compared to single stocks.
JetBlue Airways warned of a possible third-quarter loss and cut its forecast of full-year earnings Tuesday as it terminates a partnership with American Airlines and deals with flight cancellations that it blames on a shortage of air traffic controllers.Shares of the New York-based airline fell 9% in morning trading. JetBlue said it earned $138 million in the second quarter, reversing a loss of $188 million a year earlier. Excluding special items, the profit was 45 cents per share, a penny better than analysts expected, according to a FactSet survey.Revenue rose 7% to $2.61 billion, matching analysts' forecast.
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