Debt Impasse • NYC Office Lease • Hotel Updates

May 23, 2023 | Hoya Capital

Debt Impasse • NYC Office Lease • Hotel Updates Daily Recap May 23 Written By Alex Pettee, CFA U.S. equity markets finished lower Tuesday while interest rates retreated from two-month highs as investors weighed an ongoing impasse on debt ceiling negotiations against a strong slate of economic data. Retreating from its highest levels since last August, the S&P 500 dipped 1.1% today while the tech-heavy Nasdaq 100 declined by 1.3%.

The Dow slipped 231 points. Real estate equities were mixed as a rebound from office REITs was offset by weakness from tech REITs. The Equity REIT Index slipped 1.0% today while Mortgage REITs gained 0.1%. Empire State Realty (ESRT) gained more than 10% today after it announced that Flagstar Bank will assume the entire 313k square foot lease at 1400 Broadway, which was formerly leased to Signature Bank before its closure by federal regulators in March.

Pebblebrook Hotels (PEB) was among the better performers today after providing an update on operating trends, commenting that Q2 results have so far been "in line with expectations" as "business and group demand trends remain positive, while leisure demand continues to be healthy but with less exuberance than last year." Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets finished broadly lower Tuesday while benchmark interest rates retreated from two-month highs as investors weighed an ongoing impasse on debt ceiling negotiations against a strong slate of housing and PMI data.

Retreating from its highest levels since last August, the S&P 500 dipped 1.1% today while the tech-heavy Nasdaq 100 declined by 1.3%. The Dow slipped 231 points. The 2-Year Treasury Yield and 10-Year Yield each pulled-back by 2 basis points after closing at their highest-levels since early March on Tuesday. Real estate equities were mixed as a rebound from office REITs was offset by weakness from tech REITs. The Equity REIT Index slipped 1.0% today, with 13-of-18 property sectors in negative ...