Debt Ceiling Talks • Vegas Ballpark REIT • Fed Speak

May 15, 2023 | Hoya Capital

Debt Ceiling Talks • Vegas Ballpark REIT • Fed Speak Daily Recap May 15 Written By Alex Pettee, CFA U.S. equity markets advanced Monday ahead of closely-watched debt ceiling talks between President Biden and Speaker McCarthy as investors weighed weak manufacturing data against a more-dovish slate of Fed commentary. Following modest declines of roughly 0.3% last week, the S&P 500 advanced 0.3% today while the Mid-Cap 400 and the Small-Cap 600 each posted gains of roughly 1%.

Real estate equities were mixed today as strength from pro-cyclical sectors offset weakness from defensive segments. The Equity REIT Index slipped 0.3% today, with 9-of-18 property sectors in positive territory. Gaming & Leisure Properties (GLPI) reached a binding agreement with the Oakland Athletics to site their new ballpark on a portion of the current Tropicana Las Vegas hotel-casino property. Sachem Capital (SACH) - which focuses primarily on short-term residential construction lending - declined about 5% today after reporting a jump in its percentage of non-current loans.

Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets advanced Monday ahead of closely-watched debt ceiling talks between President Biden and Speaker McCarthy as investors weighed weak manufacturing data against a more-dovish slate of Fed speak. Following modest declines of roughly 0.3% last week, the S&P 500 advanced 0.3% today while the Mid-Cap 400 and the Small-Cap 600 each posted gains of roughly 1%. Real estate equities were mixed today as strength from pro-cyclical sectors offset weakness from defensive segments.

The Equity REIT Index slipped 0.3% today, with 9-of-18 property sectors in positive territory, while the Mortgage REIT Index finished higher by 1.1%. Bonds were under pressure today despite a slightly more-dovish tone from a trio of Federal Reserve officials today compared to the hawkish rhetoric last week. While the Fed's Kashkari commented that there is "more work to do on our end to try to bring inflation back down,” Bostic endorsed a pause ...