Daily Recap

• U.S. equity markets were mixed Friday as the major averages ended lower for the second-straight week amid continued pressure on the previously-high-flying technology stocks.
• Ending the week lower by 2.5%, S&P 500 finished higher by 0.1% today. The tech-heavy Nasdaq 100, however, dipped 0.7% today and ended the week off by nearly 5%.
• Real estate equities modestly outperformed on the week. Ending the week with declines of 2.2%, Equity REITs finished lower by 0.6% today with 14 of 18 sectors in negative territory.
• Casino and gaming REIT VICI Properties (VICI) became the 26th equity REIT to raise its dividend in 2020 above prior-year levels. On the other hand, we've tracked 64 equity REITs in our universe of 170 REITs to reduce or suspend their dividend since the start of the pandemic.
• Apartment REIT AvalonBay Communities (AVB), which owns a heavily-urban portfolio, reported downward pressure on rents and occupancy in urban markets. Rents declined 4.8% for July and August while occupancy dipped 130 basis points.

U.S. equity markets were mixed Friday as the major averages ended lower for the second-straight week amid continued pressure on the previously-high-flying technology stocks and as hopes dim on an extension of fiscal stimulus measures. Ending the week lower by 2.5%, S&P 500 ETF (SPY) finished higher by 0.1% today while the Dow Jones Industrial Average (DJI) rose 131 points. The tech-heavy Nasdaq 100 (QQQ), however, dipped 0.7% today and ended the week off by nearly 5%. Real estate equities modestly outperformed on the week. Ending the week with declines of 2.2%, Equity REIT ETFs (VNQ) finished lower by 0.6% today with 14 of 18 property sectors in negative territory. The Mortgage REIT ETF (REM), meanwhile, finished lower by 0.7% to end the week with 1.0% declines. 

Following a similar pattern as last week, the economically-sensitive sectors were generally among the better-performers this week amid the technology-led sell-off. 8 of the 11 GICS equity sectors finished in positive territory today, led by the Industrials (XLI), Materials (XLB), and Financials (XLF) sectors. While investors have been discouraged by the failure of Congress to reach a compromise on an extension of the coronavirus relief measures, encouraging pandemic trends in the U.S. have likely offset some of the concern among investors as the unfortunate claim of "center of the pandemic" returns to Europe. Homebuilders and the Hoya Capital Housing Index finished higher today following another generally strong week of housing data, which we'll cover in full detail in our upcoming Real Estate Weekly Outlook report.

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