Fed Downshift • Special REIT Dividend • Mixed Jobs Data

November 30, 2022 | Hoya Capital

Fed Downshift • Special REIT Dividend • Mixed Jobs Data Real Estate Daily Recap Nov 30 Written By U.S. equity markets and bond markets rallied Wednesday after Fed Chair Powell signaled a downshift in the aggressive pace of monetary tightening while employment data showed a continued hiring slowdown. Closing at its highest level in two months, the S&P 500 gained 3.1% today - notching back-to-back monthly gains for the first time since August and July 2021.

Real estate equities were broadly-higher today as well with the Equity REIT Index advancing 2.3% with all 18 property sectors in positive territory while the Mortgage REIT Index gained 2.0%. Small-Cap mall REIT CBL Properties (CBL) rallied nearly 5% today after it declared a special dividend of $2.20 per share to meet its required minimum distribution rate of 90% of taxable income. ADP data showed that job growth in November was the weakest since January 2021.

Notably, goods-producing sectors lost 86k jobs in November in the ADP survey. While mid-sized businesses (50-500 employees) continued to add jobs in November, both small and large businesses reported layoffs. Income Builder Daily Recap U.S. equity markets and bond markets rallied Wednesday after Fed Chair Powell signaled a downshift in the aggressive pace of monetary tightening while employment data showed a continued slowdown in hiring. Closing at its highest level in two months, the S&P 500 gained 3.1% today - notching back-to-back monthly gains for the first time since August and July 2021 - while the tech-heavy Nasdaq 100 rallied 4.5%.

Real estate equities were broadly-higher today as well with the Equity REIT Index advancing 2.3% with all 18 property sectors in positive territory while the Mortgage REIT Index gained 2.0%. Homebuilders advanced 1.9%, continuing a recent rebound as data today showed that mortgage rates declined to the lowest level in two months. In the final major prepared speech before the December FOMC meeting, Fed Chair Powell's comments ...