CPI Ahead • Travel Trouble • REITs Lead Rebound

March 31, 2023 | Hoya Capital

CPI Ahead • Travel Trouble • REITs Lead Rebound Real Estate Daily Recap Jan 11 Written By U.S. equity markets rallied Wednesday while benchmark interest rates retreated as investors took positions ahead of the critical CPI inflation report which will dictate the near-term direction of monetary policy. Pushing its week-to-date gains to nearly 2%, the S&P 500 climbed 1.3% today while the tech-heavy Nasdaq 100 rallied 1.7%. Real estate equities - perhaps the most significant potential beneficiaries of an easing of inflation and interest rate pressures - were among the leaders today.

Hotel REITs were among the leaders today despite the FAA-related travel disruptions. DiamondRock (DRH) rallied 5% after reporting preliminary fourth-quarter operating metrics, noting that its Revenue Per Available Room ("RevPAR") was 6.1% above the comparable pre-pandemic period in 2019. Gladstone Commercial (GOOD) slid more than 13% today after it announced that it will reduce its monthly dividend from $0.1254 to $0.10 per share "in an effort to increase retained capital in anticipation of further economic headwinds." Income Builder Daily Recap U.S. equity markets rallied Wednesday while benchmark interest rates retreated as investors took positions ahead of the critical CPI inflation report which will dictate the near-term direction of monetary policy.

Pushing its week-to-date gains to nearly 2%, the S&P 500 climbed 1.3% today while the tech-heavy Nasdaq 100 rallied 1.7%. Real estate equities - perhaps the most significant potential beneficiaries of an easing of inflation and interest rate pressures - were among the leaders today. The Equity REIT Index rallied 3.6% with all 18 property sectors in positive territory while the Mortgage REIT Index advanced 1.9%. Homebuilders and the broader Hoya Capital Housing Index gained nearly 3%, buoyed by mortgage market data showing a modest rebound in demand alongside a continued retreat in mortgage rates.

Bonds rallied as well today ahead of the key CPI inflation report tomorrow morning as the 10-Year Treasury Yield dipped 7 basis points ...