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Strong Buyback Activity Expected to Continue Into Q4, Through 2008
According to a report issued today by Standard & Poor's Index Services, third quarter buyback activity for the S&P 500 reached a record $172 billion despite higher volatility, reduced liquidity and uncertainty in the markets. The $172 billion in third quarter stock buybacks represents a 56.6% year-over-year increase and easily surpasses the previous record of $158 billion set during the second quarter of this year.
"Given the current appetite for buybacks, the immediate gratification via EPS reporting, requirements for current option exercising, and resources of the non-financial companies, buybacks are expected to continue at a strong pace into the fourth quarter and throughout 2008," says Howard Silverblatt, Senior Index Analyst at Standard & Poor's and author of the report, "S&P 500 Buybacks: Three Years and $1.3 Trillion Later."
Three Years and $1.3 Trillion Later
According to the report, over the past three-years, the total amount of stock buybacks by S&P 500 companies ($1,318 billion) has eclipsed Capital Expenditures ($1,276 billion), Research & Development ($376 billion) and common stock dividends ($605 billion). The report also mentions that the total shares repurchased during this period amounted to 38 billion shares, which equates to 12.5% of the current outstanding shares.
On a sector basis, Information Technology has led the buyback bonanza since 2004 with 21.65% of the aggregate buying, reducing its share count by 3.95%. Conversely, the Financials sector has accounted for 20.93% of the buying, increasing its share count by 7.49%.

  The report also shows that over the past three years:
  * 279 issues spent more on buybacks than Capital Expenditures
  * Buybacks represented 2.41% of exchange-listed trades
  * Total share repurchased amounted to 38 billion shares, which equates to
    12.5% of the current outstanding shares
  * Long term debt for the S&P 500 companies increased 76.1%. Excluding
    Financials, the increase would only be 6.0%
  * Financials pulled back on buybacks over the past six months
  * Direct correlations between total return and buybacks were not
    established, partially due to the alternative use of shares
  * 65.1% of the issues reduced their shares, but overall share reduction
    was limited to 1.44%, with diluted shares used for EPS calculations
    declining 0.89%

To access the report "S&P 500 Buybacks: Three Years and $1.3 Trillion Later" visit: www.marketattributes.standardandpoors.com.

  STANDARD & POOR'S INDEX SERVICES
  S&P 500 HISTORICAL MEMBERSHIP

                  MARKET   AS REPORTED                            DIVIDEND &

  QUARTER          VALUE      EARNINGS     DIVIDENDS    BUYBACKS       YBACK

  END           BILLIONS      BILLIONS      BILLIONS    BILLIONS       YIELD
  09/30/2007   13,469.72       $133.84        $60.84     $171.95       5.89%
  06/30/2007   13,349.73       $194.29        $59.44     $157.76       5.43%
  03/31/2007   12,706.32       $190.75        $58.32     $117.70       5.34%
  12/31/2006   12,728.86       $181.65        $61.76     $105.18       5.15%
  09/30/2006   12,019.85       $193.19        $54.78     $109.81       5.39%
  06/30/2006   11,496.84       $182.02        $54.46     $116.66       5.34%
  03/31/2006   11,659.69       $177.30        $53.25     $100.18       4.92%
  12/31/2005   11,254.54       $155.89        $54.83     $104.28       4.90%
  09/30/2005   11,082.59       $160.72        $48.99      $81.47       4.58%
  06/30/2005   10,890.01       $167.19        $49.03      $81.42       4.31%
  03/31/2005   10,819.81       $154.43        $48.99      $82.05       3.92%
  12/31/2004   11,288.60       $129.85        $49.68      $66.42       3.35%
  09/30/2004   10,397.80       $132.28        $45.54      $45.68       3.34%
  06/30/2004   10,623.42       $142.01        $43.43      $42.46       3.11%
  03/31/2004   10,461.32       $141.01        $42.36      $42.92       2.97%
  12/31/2003   10,285.83       $121.74        $46.76      $38.53       2.84%



  STANDARD & POOR'S INDEX SERVICES
  TOP 10 BUYBACK EXPENDITURES: Q4 2004 - Q3 2007, MILLIONS

  THREE-YEAR     COMPANY
  EXPENDITURE
  $76,208        Exxon Mobil Corp
  $57,414        Microsoft Corp
  $34,250        International Business Machines Corp
  $29,410        Procter & Gamble Co
  $26,203        Cisco Systems, Inc
  $25,325        Bank of America Corp
  $24,774        General Electric Co
  $22,180        Hewlett-Packard Co
  $21,734        Goldman Sachs Group Inc
  $21,515        Time Warner Inc

For more information, visit http://www.standardandpoors.com/