US stocks are set open marginally higher with the S&P futures implying a gain of 6.05 points. The NASDAQ index is set to open up 8.75 points, while the Dow industrial average is up around 65 point.
The Wall Street Journal reported that U.S. companies have announced an unprecedented $983.6 billion in share repurchases, with projections suggesting totals could surpass $1.1 trillion by year-end — a historic record. The surge is being driven by tech leaders such as Apple and Alphabet, alongside major banks including JPMorgan Chase, Bank of America, and Morgan Stanley. Fueled by strong earnings, tax incentives, and excess corporate cash amid ongoing trade policy uncertainty, buybacks have increasingly become a preferred alternative to capital investment. While these repurchases often boost earnings-per-share and support stock prices, critics warn they risk inflating valuations and focusing too heavily on short-term gains at the expense of long-term growth. Investors largely interpret the trend as a sign of corporate strength.
AMD and Nvidia agreed to paying the US Government 15% on certain chip sales to China. The nose is peaking in a door whereby the US government is taking more and more control on what companies can and cannot do. AMD is down -1.74%. Nvidia is down -0.41%
In other chip news, Pres. Trump will meet with Intel CEO Lip-Bu Tan today. Recall last week Trump called for his immediate resignation due to his relationship with China. My guess is Trump does not want to pay Intel Chip Act funds and if he does not resign, the funds will be stopped under the guise of national security. We will see what happens today. Intel shares are up 2.56%
S&P 500 earnings for the current quarter are showing strong momentum, with year-over-year growth of about 11.8%, marking a third straight quarter of double-digit earnings gains. Roughly 81% of companies have exceeded EPS expectations.
This article was written by Greg Michalowski at investinglive.com.