Daily Recap: REITs Lower | Housing Stocks Higher | Busy Earnings Continue

October 22, 2019 | Hoya Capital

Daily Recap: REITs Lower | Housing Stocks Higher | Busy Earnings Continue Uncategorized Oct 22 Written By Coming off a 0.7% gain yesterday, US equity markets gave back some recent gains as earnings season kicked into high gear. The S&P 500 ETF (SPY) declined 0.4% on the day, still within 1.5% of record-highs while the Nasdaq ETF (QQQ) dipped 0.8%, also within 2% of new all-time records. The 10-Year yield declined by 2 basis points to end the day at 1.77%, still towards the higher-end of its 3-month range.

Real estate equities were generally lower on the day with the broad-based REIT ETF (VNQ) ending the day lower by 0.2%, led to the upside by the student housing, mall, and timber REIT sectors while the single-family rental, storage, and manfuactured housing sectors lagged. The Hoya Capital Housing Index , the benchmark that tracks the performance of the US housing industry, finished the day at another new closing high, gaining 0.3%, led by the Home Furnishings, Homebuilding Products, and Home Improvement retail sectors.

Gains today came despite a headline miss on Existing Home Sales data, which we analyze below. Top individual performers on the day included Bed Bath & Beyond (BBBY), Aarons (AAN). Realogy (RLGY), Louisiana-Pacific (LPX), and At Home Group (HOME). Yesterday afternoon, we saw earnings results from American Campus (ACC) - which ended higher in today's session - and Equity Lifestyle (ELS) - which was among the underperformers. This morning, we saw earnings results from homebuilder Pulte Group (PHM) which beat estimates as the company reported a 13% surge in net new orders and an 11% increase in new order value.

This afternoon, we see results from Equity Residential (EQR), Highwoods (HIW), and PS Business Park (PSB). We'll have full coverage of earnings season on the iREIT on Alpha Marketplace . Below we compiled the notable earnings that we’re watching across the residential and commercial real estate sectors, which ...