starbucks, coffee, shop-5460799.jpg

Today in the Market (4/05/2022)

Good Evening. Equities fell on Tuesday as investors weighed hawkish statements by Federal Reserve Governor Lael Brainard.  Brainard signaled policymakers were ready to intervene more aggressively to reign in inflation.  Investors were also keeping an eye on news the United States and the European Union were planning to announce further sanctions against Russia on Wednesday.

After two straight trading sessions of gains, the S&P 500 fell 1.26%, while the Dow Jones Industrial Average fell 0.80%. The Nasdaq fell 2.26%, the most in three weeks.  The market giveth and the market taketh away.

SHARE BUYBACK PROGRAM

starbucks, coffee, shop-5460799.jpg

Starbucks’ three-year, $20 billion share buyback program was suspended less than six months after it was unveiled. Howard Schultz, the company’s temporary CEO, claims icing the program will free up funds to reinvest in the company’s stores and staff.

Share buybacks 101: A share buyback is when a firm buys back its own stock.  Buybacks reward current shareholders and are often used in addition to, or in lieu of, dividends. Labor organizations, the SEC, and even President Biden, who advocated stronger stock repurchase laws for company executives this week, have all criticized the practice. That hasn’t slowed down the buybacks…

  • According to Goldman Sachs, stock buybacks from S&P 500 corporations are anticipated to surpass $1 trillion this year.  The previous record was set way back in 2021 with total purchases of $882 billion.
  • Starbucks has spent $13.5 billion on stock repurchases in previous years.

Reading the coffee grounds: This is Schultz’s third term as CEO of Starbucks, but he’s dealing with inflationary pressures, stagnation in China (the company’s largest overseas market), and the company’s most strong unionization push in its history.

BOND PRESSURE

architecture, bank, building-1839443.jpg

In an effort to put pressure on Russia, the US has made it harder for Russia to pay its creditors.  The US has barred the Russian government from paying holders of its sovereign debt more than $600 million from reserves held by US banks on Monday.

As part of the sanctions imposed on Moscow, the Russian central bank’s foreign currency holdings at U.S. financial institutions were blocked on February 24.

On a case-by-case basis, the US Treasury Department had been allowing the Russian government to use cash to make coupon payments on dollar-denominated sovereign debt.

As a $552.4 million principal payment on a maturing bond became due on Monday, the US administration proceeded to shut off Moscow’s access to the frozen money.

Scroll to Top

Where Are You On Your Investment Journey?

Rise

Run

Relax

All investors are unique.  The above characteristics are examples, but may not reflect your particular investor demographics or situation.  An advisor with Edgar Investment Management, LLC will assist you with finding the best type of account for you. 

Investment advisory services are offered through Edgar Investment Management, LLC, an investment advisor registered with the State of Texas. Edgar Investment Management, LLC only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure document.

The content found on this website is developed from sources we believe provide accurate information and is for educational purposes only. The information on this website is not intended as tax or legal advice. Everyone’s tax and legal situation is different, so please consult trusted and knowledgeable legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided on this website are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Material and information found on this website is not intended as an offer or solicitation for the sale or purchase of any specific security, mutual fund, ETF, bond, or investment strategy.  

Investing is risky!  No guarantee as to performance of any investment is implied by this website.  Make sure you have evaluated your options and spoken with trained professionals before you implement any investment strategy.  Past performance is not indicative of future results.  

Please be advised that Edgar Investment Management, LLC is a financial advisory firm specializing in investment management and financial planning services. We do not offer or provide any CPA-related services, including tax preparation, tax planning, or other accounting services. If you require assistance with tax-related matters, we recommend consulting a qualified CPA or tax professional who can provide specialized advice tailored to your individual needs.

Edgar Investment Management, LLC is not a Public Accounting firm.

 

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.

  • About You

    Tell us a little about yourself. Don't be shy. Let's be friends.
  • How Can We Reach You?

    We would love to chat with you. How can we get in touch with you?
  • What's on your mind?

How much do you want to invest?