Daily Recap: Stocks Lower | Weak Manufacturing | Strong Income Growth

October 31, 2019 | Hoya Capital

Daily Recap: Stocks Lower | Weak Manufacturing | Strong Income Growth Uncategorized Oct 31 Written By After closing at record-highs yesterday following the Fed's third rate cut of 2019, the S&P 500 ETF ( SPY ) declined by 0.3% on the day as investors digested a flurry of mixed economic data, earnings reports, and trade commentary. The 10-Year Treasury Yield ( IEF ) ticked lower by 10 basis points on the day, closing at 1.69%, as PCE inflation data come in cooler-than-expected and Chicago PMI slid to nearly four-year lows.

Personal income and spending data, however, came in better-than-expected with real personal incomes rising 3.5% year-over-year, matching the strongest rate since August 2018. Despite the decline in yields, real estate equities were mixed on the day as the broad-based REIT ETF ( VNQ ) ended the day lower by 0.1%, led to the upside by the manufactured housing, single-family rental, and storage REIT sectors while the timber, shopping center, and data center sectors lagged.

The Hoya Capital Housing Index , the benchmark that tracks the performance of the US housing industry, finished the day lower by 0.5% as modest strength from the residential REIT and real estate insurance sector was offset by weakness in the homebuilding and home furnishings sector. The 58% surge in new home orders wasn't enough for high-flying homebuilder MDC Holdings ( MDC ), which traded off by more than 11% on the day.

Apartment REIT Mid-America ( MAA ) and mattress manufacturer Tempur Sealy ( TPX ) were among the stronger-performers on the day after strong earnings reports yesterday afternoon and this morning, respectively. Toll Brothers ( TOL ), RE/Max ( RMAX ), Camden ( CPT ), and AIMCO ( AIV ) all reported earnings this afternoon after the bell. As discussed in our Weekly Outlook , the "data dump" of economic data concludes tomorrow with a look at October's nonfarm payrolls report, as well as ...