Daily Recap: Stocks Gain | REITs Flat | Partial Deal?

October 9, 2019 | Hoya Capital

Daily Recap: Stocks Gain | REITs Flat | Partial Deal? Uncategorized Oct 9 Written By On the eve of the arrival of the Chinese trade delegation to Washington DC to resume trade negotiations between the two largest global economies, investors saw signs of hope on news that China was open to reaching a partial trade deal. US equity markets were broadly higher on the day with the S&P 500 (SPY) gaining 0.9% and the Nasdaq (QQQ) climbing 1.0%.

Tensions had appeared to ratchet up in recent weeks, exasperated by the ongoing protests in Hong Kong, which have finally caught the attention of the American public after the highly-covered clash with the National Basketball Association. All eyes will be on trade talks tomorrow and into the weekend as the political calculus is seemingly shifting day-by-day in both the US and in China. Real estate equities were generally flat on the day following two straight days of outperformance.

The broad-based REIT ETFs (VNQ and IYR) finished the day higher by 0.1%, led to the upside by single-family rental, data center, and timber REIT sectors while the shopping center, hotel, and mall REIT sectors lagged on the day. Top individual performers included data center REITs QTS Realty (QTS), Digital Realty (DLR), and Equinix (EQIX) and single-family rental operator Invitation Homes (INVH). The Hoya Capital Housing Index , the benchmark that tracks the performance of the US housing industry, finished the day higher by 0.4% with all seven of the eight industry groups finishing in positive territory on the day.

The real estate brokerage and technology and the homebuilding products sectors led the gains while the homebuilders lagged. Top individual performers included Sleep Number (SNBR), At Home (HOME), American Woodmark (AMWD), Eagle Materials (EXP), and Realogy (RLGY). This morning, the U.S. Bureau of Labor Statistics (BLS) reported job openings and labor turnover (JOLTS) were little changed in August, coming in at 7.1 million versus ...