Daily Recap: Trade Hopes | Stocks Slip | Week Ahead

October 7, 2019 | Hoya Capital

Daily Recap: Trade Hopes | Stocks Slip | Week Ahead Uncategorized Oct 7 Written By Coming off a mixed week that saw the S&P 500 (SPY) finish lower by 0.3% and the Nasdaq (QQQ) climb by 1%, US equity markets finished lower on a relatively slow trading day on Wall Street ahead of the closely-watched trade talks between the US and China which kick off later this week. The S&P 500 retreated by 0.4% on the day while the Nasdaq fell 0.3% as the 10-Year yield ticked higher by 4 basis points.

The broad-based REIT ETFs (VNQ and IYR) finished the day lower by 0.2%, led to the upside by the manufactured housing, hotel, and retail REIT sectors while the data center and net lease REIT sectors lagged. The Hoya Capital Housing Index , the benchmark that tracks the performance of the US housing industry, finished the day lower by 0.1% on the first day of a quiet week for housing data.

Last week, the Housing Index finished higher by roughly 0.3% on the week following blowout earnings from Lennar ( LEN ), the second-largest homebuilder in the country. Lower mortgage rates have been largely behind the recent resurgence in the single-family markets as the 30-year fixed mortgage rate is more than 130 basis points lower than its peak levels last November. Housing market completed the ' Perfect Month ' in September with better-than-expected results in all six of the major housing data releases in September: Housing Starts, Building Permits, Homebuilder Sentiment, and New, Existing, and Pending Home Sales.

After a busy jobs week, inflation data highlights this week's economic calendar. PPI inflation data is released on Tuesday while CPI data comes out on Thursday. While lower oil and food prices continue to put downward pressure on the headline inflation data, core inflation (excluding food and energy) has perked up over the last three months. There are two primary factors ...