Housing Rebound • Data Center Deal • Lab Space Spar
U.S. equity markets retreated from fourteen-month highs Tuesday as a strong slate of housing market data eased recession jitters but also renewed concerns that the Federal Reserve may remain aggressive.
Following gains of 2.2% last week that lifted the benchmark to the highest level since April 2022, the S&P 500 slipped 0.5% today. The Dow slipped 245 points.
Homebuilders added to their impressive year-to-date gains on data showing a rebound in home construction activity this Spring following a sharp cooldown in late 2022 and into early 2023.
Lab space operator Alexandria Real Estate (ARE) - which was the focus of a short report last week from activist firm Land and Buildings - provided a business update today in which it reiterated its full-year outlook. The short report last week from L&B focused on the daily utilization rate of ARE's lab space facilities, citing cell phone tracking data.
Asset manager Brookfield Infrastructure (BIP) announced that it will acquire privately-held Compass Datacenters - which currently operates roughly 16 data centers across the US, Europe, and Israel - outbidding former REIT DigitalBridge (DBRG).
Income Builder Daily Recap
U.S. equity markets retreated from fourteen-month highs Tuesday as a strong slate of housing market data eased recession jitters but also renewed concerns that the Federal Reserve will remain aggressive in its tightening course. Following gains of 2.2% last week that lifted the benchmark to the highest level since April 2022, the S&P 500 slipped 0.5% today while the Mid-Cap 400 and Small-Cap 600 posted similar declines. The Dow slipped 245 points. The policy-sensitive 2-Year Yield was little-changed at 4.70%, while the 10-Year Yield declined 4 basis points to close at 3.73%. Real estate equities - with the exception of residential-focused names - were under pressure today. The Equity REIT Index slipped 1.2% today with 17-of-18 property sectors in negative territory, while the Mortgage REIT Index finished lower by 0.7%.
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