Decision Day | REITs Rally | Earnings Recap

November 3, 2020 | Hoya Capital

Decision Day | REITs Rally | Earnings Recap Daily Recap Nov 3 Written By U.S. equity markets surged Tuesday as Americans headed to the polls while investors hope for clarity on the election results and the path for future fiscal stimulus and economic policy. After gaining 1.2% yesterday, the S&P 500 jumped another 1.8% today and the Dow Jones Industrial Average jumped surged by 555-points following yesterday's 424-point rally. Real estate equities delivered another strong day amid another busy 24-hours off earnings results as Equity REITs finished higher by 2.0% today with all 18 property sectors in positive territory.

Performance patterns suggest that the rally is likely attributable to increased odds of a "divided government" as domestic-focused and regulation-sensitive sectors have delivered notable outperformance. For example, private Prison REITs - perhaps the most politically-sensitive stocks across the entire equity market - have surged nearly 14% this week. We recap and analyze another busy slate of REIT earnings reports over the last 24 hours. Real Estate Daily Recap U.S. equity markets surged on Election Day Tuesday as Americans headed to the polls while investors hope for clarity on the election results and the path for future fiscal stimulus and economic policy.

After gaining 1.2% yesterday, the S&P 500 ETF ( SPY ) jumped another 1.8% today and the Dow Jones Industrial Average ( DIA ) jumped surged by 555-points following yesterday's 424-point rally. Real estate equities delivered another strong day amid another busy 24-hours off earnings results as the broad-based Equity REIT ETF ( VNQ ) finished higher by 2.0% today with all 18 property sectors in positive territory while the Mortgage REIT ETF ( REM ) finished higher by 1.3%.

While some publications have attributed the two-day rally to improving prospects of a "Blue Wave," the betting markets and sector-level performance trends call into question that narrative. These patterns suggest that the rally is likely more directly attributable to increasing ...