China Contraction • REIT Earnings • Week Ahead

August 1, 2022 | Hoya Capital

China Contraction • REIT Earnings • Week Ahead Real Estate Daily Recap Aug 1 Written By On the heels of their best month since November 2020, U.S. equity markets finished modestly lower Monday as investors weighed hawkish Fed commentary against data showing a continued economic cooldown. Following gains of 4.3% last week - its first back-to-back weekly gains since March - the S&P 500 slipped 0.3% today but the more domestic-focused Small-Cap 600 advanced 0.2%.

Real estate equities were mostly lower today ahead of their busiest week of earnings season. Following a two-week stretch of notable outperformance, the Equity REIT Index declined 0.8% today. PMI data over the weekend showed an unexpected contraction in Chinese factory activity. Stateside, S&P Global's PMI metric slipped to a two-year low in July while its measure for prices paid plunged 18.5 points to the lowest level in almost two years.

Employment data highlights another busy week of economic data and corporate earnings reports in the week ahead, headlined by JOLTS data on Tuesday, Jobless Claims on Thursday, and the BLS Nonfarm Payrolls report on Friday. Real Estate Daily Recap On the heels of their best month since November 2020, U.S. equity markets finished modestly lower Monday as investors weighed hawkish Fed commentary against data showing a continued cooldown in global growth ahead of a critical week of employment data.

Following gains of 4.3% last week - its first back-to-back weekly gains since March - the S&P 500 slipped 0.3% today but the more domestic-focused Small-Cap 600 advanced 0.2% and the Mid-Cap 400 finished fractionally lower. Real estate equities were mostly lower today ahead of their busiest week of earnings season with reports from over 100 REITs. Following a two-week stretch of notable outperformance, the Equity REIT Index declined 0.8% today with 15-of-18 property sectors in negative territory but the Mortgage REIT Index gained 0.5%.

Comments from Fed officials pushing back on the idea of ...