The Hoya Capital US REIT Index finished the day higher by 1.0%, led to the upside by the hotel, industrial, and student housing REIT sectors. The storage, cell tower, and data center REIT sectors were the relative underperformers on the day. The S&P 500 finished the day higher by 0.4% while the Nasdaq finished higher by 0.5%. At 2.48%, the 10-Year Yield finished the day lower by 2 basis points and remains roughly 75 basis points lower than it's peak last October following benign inflation data today in the CPI report.

Within the Hoya Capital US Housing Index, the Home Furnishings and Real Estate Technology & Brokerage sectors were the strongest performer on the day, each jumping by 2.2% led by Tempur Sealy (TPX), Realogy (RLGY), Overstock (OSTK), Bed Bath Beyond (BBBY), and La-Z-Boy (LZB).

The Home Improvement Retail sector was the relative laggard on the day with Home Depot (HD) finishing the day lower by 0.7% Homebuilding Products & Materials also underperformed on a relative basis, held back by Watsco (WSO), Lennox (LII), and Louisiana-Pacific (LPX).

CPI inflation data today was rather benign with Core CPI coming in shy of estimates at 2.0%. Housing (CPI:Shelter) accounts for more than a third of the total CPI weight (42% including housing-related services), and since 2013, housing inflation has been significantly above the overall inflation rate. From 2015 through late 2016, housing inflation was one of the only components keeping Core CPI out of deflationary territory. Housing inflation has reaccelerated over the last several months after moderating slightly in 2018. Consistent with data from Yardi, primary rent growth has picked back up to 3.7% YoY, significantly above the broader inflation rate of 1.1%.

The economic calendar for the rest of this week includes PPI on Thursday and Consumer Confidence on Friday.

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