Lows Of The Year • Hot PPI • Apartment Deal

October 12, 2022 | Hoya Capital

Lows Of The Year • Hot PPI • Apartment Deal Real Estate Daily Recap Oct 12 Written By U.S. equity markets dipped to the lowest levels of the year Wednesday after producer inflation data failed to show signs of significant cooling as the focus turns to CPI data tomorrow. Declining for the sixth straight session and dipping to the lowest level since November 2020, the S&P 500 declined another 0.3% today while the tech-heavy Nasdaq 100 finished fractionally lower.

The downside pressure on real estate equities resumed after a reprieve on Tuesday as interest rates hovered near multi-decade highs. The Equity REIT Index slipped 1.1% with 14-of-18 property sectors lower. Inflation data this morning showed that wholesale producer prices rose slightly faster than expected in September with the headline PPI Index rising 0.4% for the month and 8.5% from last year. Tricon Residential (TCN) advanced 1.5% today after it announced an agreement to sell its remaining apartment assets to complete its shift towards a pure-play single-family rental REIT.

Elsewhere, a pair of hotel REITs provided business updates showing solid performance in September. Income Builder Daily Recap U.S. equity markets dipped to the lowest levels of the year Wednesday after producer inflation data failed to show signs of significant cooling as the focus turns to the critical CPI inflation report tomorrow morning. Declining for the sixth straight session and dipping to the lowest level since November 2020, the S&P 500 declined another 0.3% today while the tech-heavy Nasdaq 100 finished fractionally lower.

The Mid-Cap 400 and Small-Cap 600 were each lower by 0.5%. The downside pressure on real estate equities resumed after a brief reprieve on Tuesday as long-term interest rates hovered near multi-decade highs. The Equity REIT Index slipped 1.1% with 14-of-18 property sectors in negative territory while the Mortgage REIT Index declined 0.8%. Inflation data this morning showed that wholesale producer prices rose slightly faster than expected in September ...