Market's strength without buybacks hints at a boost next year when companies start buying again

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The market managed to roar back in rapid fashion without buybacks, once a key pillar of the decadelong bull market, leaving hope that stocks could enjoy a boost when repurchases eventually make a return.

Stock buybacks dried up in the second quarter as cash-conserving Corporate America focused on cutting costs and managing liquidity risk amid the coronavirus crisis. Share repurchases from the S&P 500 companies dropped 55% to $88.7 billion in the second quarter, the lowest amount since March 2012, according to S&P Dow Jones Indices.

 

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