Goldilocks Returns? • Stocks Rally • Hotel REIT Updates

January 6, 2023 | Hoya Capital

Goldilocks Returns? • Stocks Rally • Hotel REIT Updates Real Estate Daily Recap Jan 6 Written By U.S. equity markets rallied Friday while benchmark interest rates dipped after the closely-watched nonfarm payrolls report showed a slowdown in wage growth consistent with a broader cooling of inflationary pressures. Snapping a three-week losing streak with cumulative weekly gains of 1.5%, the S&P 500 advanced 2.3% today while the tech-heavy Nasdaq 100 rallied nearly 3%.

Real estate equities - one of the more yield-sensitive segments of the market - were among the leaders today and for the week. The Equity REIT Index rallied 2.7% today. The December payrolls report showed that despite stronger-than-expected job growth, wages rose at the slowest pace since August 2021, providing evidence that a cooldown in inflationary pressures may not require a further intensification of monetary tightening. Braemar Hotels (BHR) surged nearly 9% today after it announced preliminary fourth-quarter results, noting that it achieved RevPAR levels that were 20% above the pre-pandemic comparable levels from 2019.

Income Builder Daily Recap U.S. equity markets rallied Friday while benchmark interest rates dipped after the closely-watched BLS nonfarm payrolls report showed a slowdown in wage growth consistent with a broader cooling of inflationary pressures. Snapping a three-week losing streak with cumulative weekly gains of 1.5%, the S&P 500 advanced 2.3% today while the tech-heavy Nasdaq 100 rallied nearly 3%. Real estate equities - one of the more yield-sensitive segments of the market - were among the leaders today and for the week.

The Equity REIT Index rallied 2.7% today with all 18 property sectors in positive-territory while the Mortgage REIT Index advanced 1.7%. The dip in benchmark rates was especially welcome news for homebuilders and the broader Hoya Capital Housing Index , which gained 2.6% today and nearly 5% this week. Concluding a busy week of employment data, the critical BLS nonfarm payrolls report this morning showed that the U.S. economy added ...