Housing Rebound • Data Center Deal • Lab Space Spar

June 20, 2023 | Hoya Capital

Housing Rebound • Data Center Deal • Lab Space Spar Daily Recap Jun 20 Written By Alex Pettee, CFA U.S. equity markets retreated from fourteen-month highs Tuesday as a strong slate of housing market data eased recession jitters but also renewed concerns that the Federal Reserve may remain aggressive. Following gains of 2.2% last week that lifted the benchmark to the highest level since April 2022, the S&P 500 slipped 0.5% today.

The Dow slipped 245 points. Homebuilders added to their impressive year-to-date gains on data showing a rebound in home construction activity this Spring following a sharp cooldown in late 2022 and into early 2023. Lab space operator Alexandria Real Estate (ARE) - which was the focus of a short report last week from activist firm Land and Buildings - provided a business update today in which it reiterated its full-year outlook.

The short report last week from L&B focused on the daily utilization rate of ARE's lab space facilities, citing cell phone tracking data. Asset manager Brookfield Infrastructure (BIP) announced that it will acquire privately-held Compass Datacenters - which currently operates roughly 16 data centers across the US, Europe, and Israel - outbidding former REIT DigitalBridge (DBRG). Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets retreated from fourteen-month highs Tuesday as a strong slate of housing market data eased recession jitters but also renewed concerns that the Federal Reserve will remain aggressive in its tightening course.

Following gains of 2.2% last week that lifted the benchmark to the highest level since April 2022, the S&P 500 slipped 0.5% today while the Mid-Cap 400 and Small-Cap 600 posted similar declines. The Dow slipped 245 points. The policy-sensitive 2-Year Yield was little-changed at 4.70%, while the 10-Year Yield declined 4 basis points to close at 3.73%. Real estate equities - with the exception of residential-focused names - were under pressure today.

The Equity REIT Index slipped ...