Inflation Cools • Prologis Earnings • Apartment M&A

January 18, 2023 | Hoya Capital

Inflation Cools • Prologis Earnings • Apartment M&A Real Estate Daily Recap Jan 18 Written By U.S. equity markets finished broadly lower Wednesday despite encouraging inflation and housing market data as investors parsed commentary from Fed officials who reiterated calls for additional interest-rate increases. Following modest declines on Tuesday, the S&P 500 dipped 1.6% today while the tech-heavy Nasdaq 100 fell 1.3% - snapping a seven-day rally. The 10-Year Treasury Yield dipped to four-month-lows.

Despite a strong start to REIT earnings season, real estate equities were also under pressure today with the Equity REIT Index slipping 1.5% with 17-of-18 property sectors in negative territory. Prologis (PLD) kicked-off REIT earnings season with very strong results, noting that it expects Core FFO growth of nearly 10% in 2023. After the close today, Veris Residential (VRE) announced that it will not proceed with a proposed takeover offer from Kushner Companies.

Following the cooler-than-expected CPI report last week, investors saw another encouraging sign that inflationary pressures have eased with Producer Price Index data this morning showing that wholesale prices fell sharply in December. Income Builder Daily Recap U.S. equity markets finished broadly lower Wednesday despite encouraging inflation and housing market data as investors parsed commentary from Fed officials who reiterated calls for additional interest-rate increases. Following modest declines on Tuesday, the S&P 500 dipped 1.6% today while the tech-heavy Nasdaq 100 fell 1.3% - snapping a seven-day rally.

Despite a strong start to REIT earnings season, real estate equities were also under pressure today with the Equity REIT Index slipping 1.5% with 17-of-18 property sectors in negative territory while the Mortgage REIT Index slipped 0.3%. Despite the hawkish Fed commentary, bonds rallied today after a busy slate of economic data this morning showed a continued softening of economic conditions in December. The 10-Year Treasury Yield dipped 16 basis points to close at 3.38% today - the lowest since early September.

Crude Oil prices dipped ...