The Hoya Capital US REIT Index jumped more than 2% on the day following ADP jobs data that missed estimates by a wide margin. Nonfarm payrolls from the BLS will be released this Friday. The storage, industrial, and shopping center REITs led the way, while the hotel sector lagged. Following 2% jumps yesterday, the S&P 500 climbed another 0.9% while the Nasdaq finished higher by 0.7%. At 2.12%, the 10-Year yield finished the day flat, after hitting the lowest level in 21 months earlier this week.

The Hoya Capital US Housing Index finished the day higher by 0.8% with six of the eight sectors in positive territory. The Residential REITs and Real Estate Insurance sector were the outperformers on the day. Wayfair, Zillow, Sherwin-Williams, and Extra Space Storage each climbed more than 3% each.

Jobs data highlights a busy week of economic data ahead, which will be closely watched by market participants around the world. The US labor markets have defied expectations on the upside for much of the past half-decade, and continued strength in job growth should be expected to strengthen the Administration's hand at the negotiating table and improve the outlook for a trade deal with China. On the flip-side, a particularly weak report will very much put Fed rate cuts back in play and may leave the 10-year with a 1-handle by next weekend. Construction spending on Monday, factory orders on Tuesday, and ADP employment data on Wednesday are the other notable releases this week.

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