There are five familiar companies that are so flush with cash that they make up 24% of the cash on balance sheets today.
On the first down day in awhile, while cash wasn’t universal protection for�Apple (AAPL), Cisco (CSCO),�Google (GOOG), Microsoft (MSFT) and�Pfizer (PFE), it did seem to support the stocks. Those five have $347 billion, or 24% of the total non-financial corporate cash balances, according to a Moody’s report.
Heading in to the close, Apple was the outperformer, with higher than average volume compared to the other names:
- Apple up 2.5%
- Cisco down 1.2%
- Google down 0.78%
- Microsoft up 0.25%
- Pfizer up 0.25%
Moody’s says technology, healthcare/pharmaceuticals, energy and consumer products are the industries with the most cash: $990 billion, or 68% of the corporate cash total. �Tech is the largest — $556 billion or 38% of the total.
According to Moody’s, while “overall business conditions will remain subdued over the next year,” it expects aggregate spending in 2013 to be slightly higher than 2012 levels, at about $1.7 trillion on capital investments, dividends, acquisitions, and share buybacks.
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