Mall REIT Dissolves • Solid Jobs Data • Risk-On Rotation

July 8, 2022 | Hoya Capital

Mall REIT Dissolves • Solid Jobs Data • Risk-On Rotation Real Estate Daily Recap Jul 8 Written By U.S. equity markets inched lower Friday- but held onto weekly gains- as solid employment data eased recession concerns, sparking a bid for risk assets while sending benchmark yields higher. Holding onto weekly gains of nearly 2%, the S&P 500 finished lower by 0.1% today while the tech-heavy Nasdaq 100 advanced 0.1% to push its weekly gains to nearly 5%.

The "risk-on" pattern was evident across real estate equities as economically-sensitive sectors rebounded this week while defensive sectors lagged. Troubled mall owner Seritage Growth Properties (SRG) surged 80% today after the company's board approved a plan to sell all of the company's assets and then dissolve. Job growth impressed to the upside in June according to the latest nonfarm payrolls report released this morning as the U.S. economy added 372k jobs last month - higher than the 270k expected - a contrast to the recent weakness seen across most other economic datasets.

Income Builder Daily Recap U.S. equity markets inched lower Friday - but held onto gains for the week - as solid employment data eased recession concerns, sparking a bid for risk assets while sending benchmark interest rates higher. Holding onto weekly gains of nearly 2%, the S&P 500 finished lower by 0.1% today while the tech-heavy Nasdaq 100 advanced 0.1% to push its weekly gains to nearly 5%. The "risk-on" pattern was evident across real estate equities as economically-sensitive sectors rebounded this week while defensive sectors lagged.

The Equity REIT Index finished lower by 0.5% today - and 0.7% for the week - while the Mortgage REIT Index gained 0.1% to push its weekly gains to nearly 1%. Job growth impressed to the upside in June according to the latest nonfarm payrolls report released this morning as the U.S. economy added 372k jobs last month - higher than the 270k expected ...