IBM, Nestle stock buybacks boost recovery hopes


IBM (IBM) is rolling -- and that's good news for the technology industry as well as the broader U.S. economy. On Monday, Big Blue announced that its board had approved another $5 billion to buy back some of its own stock. The move, which comes on the heels of consecutive strong financial quarters, brings the blue-chip bellwether's repurchase program to $9.2 billion.

"Its a pretty significant amount," Broadpoint AMTech analyst Brian Marshall told DailyFinance. "I think they're trying to get the stock moving." Stock buybacks are a way of management to signal confidence in a company -- and they're good for shareholders, because they reduce the number of shares outstanding, increasing earnings per share.