Companies Unleash 2nd Biggest Stock Buyback Spree On Record Ahead Of Buyback Blackout This Friday

How powerful are stock buybacks? Think of this way: back on April 22, we bottom-ticked the market when we reported that with the S&P dipping below 5,000, stocks were set to soar as "traders frontrun the end of buyback blackout period." The S&P took and and hasn't looked back since.

And even though both institutional and retail activity in the period since the end of April had been rather muted, there has been one constant, relentless, price-indiscriminate buyer all the way: corporate buybacks. Yes, there is a reason why frontrunning the end of stock buyback period was such a powerful force, because in this market, buybacks have long ago emerged as the primary buying force, amounting to some $5 billion in daily stock purchases, eclipsing all other natural buyers.