Earnings Begin • Toxic Telecom? • Week Ahead

July 17, 2023 | Hoya Capital

Earnings Begin • Toxic Telecom? • Week Ahead Daily Recap Jul 17 Written By Alex Pettee, CFA U.S. equity markets extended their inflation-week rally Monday while benchmark interest rates resumed their recent declines as investors parsed weak Chinese economic data and the initial slate of corporate earnings results. Adding to last week's 2.5% advance and closing at the highest levels since April 2020, the S&P 500 gained 0.4% today. The Nasdaq 100 gained 0.9% while the Dow gained 76 points.

Real estate equities were laggards today ahead of the start of earnings season as a sharp telecom selloff hit heavily-weighted cell tower stocks. The Equity REIT Index slipped 0.7%. Cell Tower REITs stumbled on the heels of a Wall Street Journal report that named AT&T and Verizon among several telecom companies that abandoned underground toxic lead cables, which may require expensive remediation. Real estate earnings season kicks off this week with reports from a half-dozen REITs.

This afternoon, we'll hear results from manufactured housing REIT Equity LifeStyle (ELS) and tomorrow morning we'll hear results from industrial REIT Prologis (PLD). Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets extended their inflation-week rally Monday while benchmark interest rates resumed their recent declines as investors parsed weak Chinese economic data and the initial slate of second-quarter corporate earnings results. Adding to last week's 2.5% advance and closing at the highest-levels since April 2020, the S&P 500 gained 0.4% today, while the Mid-Cap 400 and Small-Cap 600 gained 0.7% and 0.9%, respectively.

The Nasdaq 100 gained 0.9%, while the Dow gained 76 points. Real estate equities were laggards today ahead of the start of earnings season this afternoon as a sharp telecom selloff hit the heavily-weighted cell tower stocks. The Equity REIT Index slipped 0.7% today, with 9-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 1.1%. Cell Tower : The perennially-outperforming cell tower REIT sector has ...