Bed Bath Be-Gone • REIT Earnings • Week Ahead

April 19, 2023 | Hoya Capital

Bed Bath Be-Gone • REIT Earnings • Week Ahead Daily Recap Apr 24 Written By Alex Pettee, CFA U.S. equity markets were little-changed Monday while benchmark interest rates drifted lower as traders took positions ahead of a jam-packed week of corporate earnings reports and economic data. Following a tranquil week in which volatility benchmarks calmed to the lowest-levels since November 2021, the S&P 500 advanced 0.1% today, while the tech-heavy Nasdaq 100 declined 0.2%.

Real estate equities finished mostly-lower today ahead of earnings reports from nearly a third of the sector this week. The Equity REIT Index declined 0.4% today, while Mortgage REITs slipped 0.6%. Strip Center REITs were under pressure today after the troubled retailer Bed Bath & Beyond - which comprises about 1% of the sector's rents - filed for Chapter 11 bankruptcy protection with plans to vacate its 500 stores. Mortgage REIT Dynex Capital (DX) - which focuses on agency-backed residential MBS - finished lower by about 0.5% after reporting mixed results this morning but reiterating its commitment to its dividend.

Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets were little-changed Monday while benchmark interest rates drifted lower as traders took positions ahead of a jam-packed week of corporate earnings reports and economic data. Following a tranquil week in which the equity market volatility benchmark calmed to the lowest levels since November 2021, the S&P 500 advanced 0.1% today, while the tech-heavy Nasdaq 100 declined 0.2%. Real estate equities finished mostly-lower today ahead of earnings results from nearly a third of the sector in the week ahead.

The Equity REIT Index declined 0.4% today, with 13-of-18 property sectors in negative territory, while the Mortgage REIT Index declined 0.6%. Homebuilders were again a notable bright spot today, however, ahead of results this week from a half-dozen builders. As noted in our Real Estate Weekly Outlook , nearly 80% of S&P 500 components have topped ...