Investors Bet Corporate Spending and Buybacks will Support Stocks
“Investors are betting that cash-rich companies will increase spending on everything from factories to share buybacks, a combination many believe can boost stocks in coming months. Businesses including Tyson Foods Inc., consumer-products firm Newell Brands Inc., Morgan Stanley,” reports Hardika Singh in The Wall Street Journal.
“They plan to build factories, expand research budgets, pay down debt or seek acquisitions while also giving priority to dividends or share repurchases. The hoard of cash held by U.S. companies is a key comfort for U.S. investors, despite worries that the spread of the Delta variant of coronavirus could dent the burgeoning recovery.”
