Inflation Stays Hot • Wild Stock Swings • REIT Dividend Hike

October 13, 2022 | Hoya Capital

Inflation Stays Hot • Wild Stock Swings • REIT Dividend Hike Real Estate Daily Recap Oct 13 Written By U.S. equity markets rebounded Thursday in another wild session despite disappointingly hot inflation data as a seemingly unexplained wave of programmatic-driven buying pressure erased steep early-session declines. Rebounding from the lowest levels since 2020 and snapping a six-session losing streak, the S&P 500 rallied 2.6% today while the tech-heavy Nasdaq 100 advanced 2.4%.

The Equity REIT Index advanced 2.0% today with all 18 property sectors in positive territory while the Mortgage REIT Index gained 1.9%. Homebuilders lagged as mortgage rates climbed to multi-decade-highs. 'Bad news' on the inflation front continued today with the most closely-watched measure of US consumer prices - Core CPI - rising by more than expected to a 40-year high in September. The CPI Excluding-Shelter Index, however, posted a third straight monthly decline.

Hotel REIT Service Properties Trust (SVC) surged more than 25% after it resumed its previously-suspended dividend at $0.20/share quarterly dividend, representing a dividend yield of 14.47%. Income Builder Daily Recap U.S. equity markets rebounded Thursday from two-year lows in another wild session despite disappointingly hot inflation data as a seemingly unexplained wave of buying pressure erased steep early-session declines. Recovering from early-session declines of over 2% en route to snap a six-session losing streak, the S&P 500 rallied 2.6% today while the tech-heavy Nasdaq 100 advanced 2.4%.

Real estate equities were also broadly-higher today despite the uptick in long-term interest rates with the 10-Year Treasury Yield climbing 5 basis points to 3.95%. The Equity REIT Index advanced 2.0% today with all 18 property sectors in positive territory while the Mortgage REIT Index gained 1.9%. Homebuilders lagged as mortgage rates climbed to multi-decade highs. 'Bad news' on the inflation front continued today with the most closely-watched measure of US consumer prices - Core CPI - rising by more than expected to a 40-year high in September, ...