Buyback-driven S&P 500 stocks have been ailing for months

U.S. companies most inclined to buy back stock have rarely shown as much weakness as they have lately. That’s evident from the ratio between the S&P 500 Buyback Index and the S&P 500 Index. The buyback gauge, tracking S&P 500 companies that spend the most on repurchases relative to market value, fell Wednesday to its lowest level versus the S&P 500 since May 2010. The low followed a 17% drop from a peak in November, according to data compiled by Bloomberg. Losses in buyback-driven stocks were cited by Julian Emanuel, chief equity and derivatives strategist at BTIG LLC, in a report on Thursday.