Daily Recap: Stocks Flatline | Solid PMIs | Another Big Week of Housing Data

September 23, 2019 | Hoya Capital

Daily Recap: Stocks Flatline | Solid PMIs | Another Big Week of Housing Data Uncategorized Sep 23 Written By After snapping their three-week winning streak with modest declines last week, US equity markets started the first week of Autumn little-changed with the S&P 500 climbing 0.1% and the Nasdaq gaining 0.5%. Trading in a tight range for most of the day, investors digested solid US PMI data coming after weaker-than-expected manufacturing data from Germany earlier in the day.

The 10-Year yield fell 5 basis points on the day, resuming a retreat after perking higher to 1.90% back on September 14th, but well off the recent lows of 1.45% hit on September 3rd. Coming off a week that saw the broad-based REIT ETFs ( VNQ and IYR ) jump by more than 2%, the REIT ETFs finished the day modestly higher, led by the Data Center, Apartment, and Industrial REIT sectors.

Top individual performers on the day included CBL & Associates (CBL), Equnix (EQIX), Paramount Group (PGRE), Physicians Realty (DOC), Digital Realty (DLR), CoreSite (COR), Healthcare Trust of America (HTA), and National Health Investors (NHI). The single family rental REIT sector was the laggard on the day after jumping more than 4% last week. The Hoya Capital Housing Index , the benchmark that tracks the performance of the US housing industry, finished the day flat, led to the upside by the Mortgage Lending and Services and Home Improvement Retail sectors.

At Home (HOME), Williams-Sonoma (WSM), La-Z-Boy (LZB), Lennar (LEN), DR Horton (DHI), and Re/Max (RMAX) were among the top individual performers in the housing sector ahead of another big week of housing data. On that point, Home Price data from S&P/Case Shiller and the FHFA is released on Tuesday. Home price appreciation moderated meaningfully from mid-2018 through early 2019, but has shown early signs of stabilization and even reacceleration in recent months amid a favorable backdrop of lower mortgage rates.

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