Daily Recap: Stocks Near Records | Earnings Season Ramps-Up | Housing Data Ahead
US equity markets started the week on a strong note with the major indexes edging closer to new record-highs as earnings season kicks into high-gear this week. The S&P 500 ETF (SPY) gained 0.7% on the day, closing within 1% of record-highs while the Nasdaq ETF (QQQ) gained 0.8%, also closing within 1% of new all-time records. The 10-Year yield climbed by 5 basis points to end the day at 1.79%, towards the higher-end of its 3-month range.
As discussed in last week's Real Estate Weekly Outlook, REITs and homebuilders continue to lead the way as the "Goldilocks" economic conditions of low-interest rates and consumer-led growth continue to provide an ideal backdrop. Real estate equities were generally higher on the day with the broad-based REIT ETF (VNQ) ending the day higher by 0.6%, led by the mall, hotel, timber and shopping center REIT sectors. Student Housing REIT American Campus (ACC) and manufactured housing REIT Equity Lifestyle (ELS) report earnings this afternoon. Last week, we published our Real Estate Earnings Preview. Below we compiled the notable earnings that we’re watching across the residential and commercial real estate sectors, which we will update throughout earnings season in our Real Estate Weekly Review.
The Hoya Capital Housing Index, the benchmark that tracks the performance of the US housing industry, finished the day at another new closing high, gaining 0.5% on the day coming off 2.5% gains last week. Lower mortgage rates have done wonders to revive the sputtering single-family housing market after the worst 8-12 month period since the housing crisis. Top individual performers today included real estate technology and brokerage firms: Realogy (RLGY), Zillow (Z), Re/Max (RMAX) and home furnishings names: Bed Bath & Beyond (BBBY), Wayfair (W), and Restoration Hardware (RH).
It'll be another fairly busy week of economic data with Existing Home Sales released on Tuesday, the FHFA Home Price Index on Wednesday, and New Home Sales data released on Thursday, in addition to a flurry off PMI and manufacturing data this week. New Home Sales is coming off the best month in more than 12 years and expectations call for the second straight month of 700k or more units sold.
For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Apartments, Homebuilders, Student Housing, Single-Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Shopping Centers, Hotels, Office, Storage, Timber, and Real Estate Crowdfunding.
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Disclosure: An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. We consider the information in this presentation to be accurate, but we do not represent that it is complete. It should not be relied upon as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing. Visit our website for a complete definition of all indexes cited in this report. Investing involves risk and loss of principal is possible.