Would-Be Corporate Dip Buyers Armed With Fresh $107 Billion

Equity bulls looking for signs of relief after Tuesday’s stock rout may get a hand from a familiar friend: corporate America.

Companies authorized $107 billion in new buybacks last month, the most on record for any August, according to data from Birinyi Associates. The dollar value of announced buybacks was 17% higher than the previous August record, set in 2021. Data from Goldman Sachs Group Inc. suggest companies will supply $6.62 billion worth of daily purchasing power between now and Sept. 13, when they are forced to pause ahead of the third-quarter earnings season.

The group went on a buying spree in the days after the Aug. 5 stock rout, according to Goldman data. The bank’s corporate repurchase saw record orders from companies for their own shares, with demand 2.41 times higher versus the same period a year ago.

“Companies are getting comfortable with their outlooks for the next few months and they’re generating a lot of cash,” said Jeff Rubin, president of Birinyi Associates.

Overall, Goldman’s corporate buyback team estimates $1.15 trillion worth of authorizations and $960 billion of executed buybacks this year. Those would represent the most since 2022, according to Birinyi Associates.

The boost from corporate America would be welcome for bulls after Tuesday’s 2.1% swoon in the S&P 500. Futures on the index were lower 0.4% as of 8:40 a.m. in New York. Big tech companies were among the hardest hit in the selloff, including Nvidia Corp., which saw a record $279 billion in value wiped out. Apple Inc. and Alphabet Inc., along with others in the so-called Magnificent Seven, are among firms with the biggest buyback authorizations.

Buybacks are also expanding beyond just large cap technology or communication services companies.