Fed Goes Quiet • Hotel Updates • Stocks Rebound

January 20, 2023 | Hoya Capital

Fed Goes Quiet • Hotel Updates • Stocks Rebound Real Estate Daily Recap Jan 20 Written By U.S. equity markets rebounded Friday - snapping a three-day losing streak - as Fed officials struck a less hawkish tone entering the "quiet period" before its February rate hike decision. Trimming its weekly declines to under 1%, the S&P 500 advanced 1.8% today while the tech-heavy Nasdaq 100 rallied 2.7%, buoyed by strong results from streaming giant Netflix.

Homebuilders rebound after Existing Home Sales data wasn't as soft as feared in December as interest rates retreated from multi-decade highs. Equity REITs gained 1.2% while Mortgage REITs rallied 1.5%. Pebblebrook (PEB) rallied 4% after providing a business update noting that its revenue and FFO metrics in Q4 are not expected to be as soft as previously forecast in mid-December. Travel data firm STR reported today that U.S. hotels recorded a 14.8% increase in Revenue Per Available Room above 2019 levels in December - capping off the best year on record for the hotel industry.

Income Builder Daily Recap U.S. equity markets rebounded Friday - snapping a three-day losing streak - as Fed officials struck a less hawkish tone entering the "quiet period" before its February rate hike decision. Trimming its weekly declines to under 1%, the S&P 500 advanced 1.8% today while the tech-heavy Nasdaq 100 rallied 2.7%, buoyed by strong results from streaming giant Netflix. Real estate equities were broadly-higher today as well with the Equity REIT Index posting gains of 1.2% with 16-of-18 property sectors in positive territory while the Mortgage REIT Index advanced 1.5%.

Homebuilders and the broader Hoya Capital Housing Index continued their strong start to 2023 after Existing Home Sales data wasn't as soft as expected in December. Following several days of hawkish central bank rhetoric, a handful of Fed officials expressed a more modest tone on the final day before the Fed's blackout period, highlighted by remarks from ...