Amazon Layoffs • Rents Decline • Payrolls Ahead

January 5, 2023 | Hoya Capital

Amazon Layoffs • Rents Decline • Payrolls Ahead Real Estate Daily Recap Jan 5 Written By U.S. equity markets finished lower Thursday as employment data from ADP and the DOL showed evidence of continued strength in labor markets despite another wave of large-scale corporate layoff announcements. Dipping back into negative territory for the week, the S&P 500 slipped 1.3% today while the tech-heavy Nasdaq 100 dipped 1.6%. The 2-Year Treasury Yield jumped by the most in a month.

After leading the gains in the first two sessions of 2023, real estate equities were among the laggards today. Equity REITs slipped 2.8% today while Mortgage REITs declined 0.5%. ADP reported today that private payrolls expanded by 235,000 in December - ahead of consensus estimates of 150k - and accelerating from the 182k jobs added in November. Apartment List's national index fell by 0.8% over the course of December, marking the fourth straight month-over-month decline.

For the full-year, national median rent increased by a total of 3.8% - a notably sharp slowdown from the 17.6% surge in 2021. Income Builder Daily Recap U.S. equity markets finished lower Thursday as employment data from ADP and the DOL showed evidence of continued strength in labor markets despite another wave of large-scale corporate layoff announcements. Dipping back into negative territory for the week, the S&P 500 slipped 1.3% today while the tech-heavy Nasdaq 100 dipped 1.6%.

After leading the gains in the first two sessions of 2023, real estate equities were among the laggards today with the Equity REIT Index slipping 2.8% today with all 18 property sectors in negative-territory while the Mortgage REIT Index declined 0.5%. Ahead of the critical nonfarm payrolls report on Friday morning, bond markets snapped a two-day streak of gains after relatively strong ADP payrolls and jobless claims data weakened the case for an imminent Fed pivot towards less-aggressive tightening.

The policy-sensitive 2-Year Treasury Yield ( US2Y ) climbed by ...