Daily Recap: Trade Hopes | Stocks Gain | Housing Inflation

October 10, 2019 | Hoya Capital

Daily Recap: Trade Hopes | Stocks Gain | Housing Inflation Uncategorized Oct 10 Written By No news is good news. On the first day of the closely-watched trade negotiations between the US and China, US equity markets advanced as trade discussions appeared to be advancing after fears earlier this week that recent escalations and hickups could derail the meeting. After gaining nearly 1% yesterday, the S&P 500 (SPY) climbed by 0.7% while the Nasdaq (QQQ) gained 0.8%.

Despite a cooler-than-expected CPI inflation reading this morning, the 10-Year yield advanced by 7 basis points on the day and is now higher by 14 basis points since the end of last week. Real estate equities were generally higher on the day, but underperformed the broader equity market gains for the second straight day. The broad-based REIT ETF (VNQ) finished the day higher by 0.1%, led to the upside by the cell tower, mall, and single-family rental REIT sectors while the office, data center, and storage REIT sectors lagged on the day.

Top individual performers included hotel REITs, Summit (INN), Sunstone (SHO), and Pebblebrook (PEB) as well as cell tower REIT, SBA Communications (SBAC). The Hoya Capital Housing Index , the benchmark that tracks the performance of the US housing industry, finished the day higher by 0.5% with six of the eight industry groups finishing in positive territory on the day. The home improvement retail, home furnishings, and mortgage lenders/servicers led today's gains while the homebuilders and real estate brokerage and technology companies lagged.

Yesterday afternoon, Bed Bath & Beyond (BBBY) jumped more than 21% after it named Mark Tritton, CMO at Target, as the company's new CEO to succeed interim CEO Mary Winston, a move that was applauded by investors and analysts. Top individual performers included MGIC Investment (MTG), At Home (HOME), Lowe's (LOW), AO Smith (AOS), and New Residential (NRZ). This morning, the Bureau of Labor Statistics released Consumer Price Index ...