New REIT Listing • PPI Plunge • Dividend Hikes & Cut

April 13, 2023 | Hoya Capital

New REIT Listing • PPI Plunge • Dividend Hikes & Cut Daily Recap Apr 13 Written By Alex Pettee, CFA U.S. equity markets rallied Thursday after Producer Price data showed the sharpest monthly decline in wholesale prices in nearly three years, providing further evidence of cooling inflationary pressures. Pushing its week-to-date gains to about 1%, the S&P 500 rallied 1.3% today, while the Mid-Cap 400 and Small-Cap 600 each advanced 0.7%.

The Dow added 383 points. Real estate equities were laggards today despite the encouraging inflation news, with the Equity REIT Index slipping 0.4% with 8-of-18 property sectors in negative territory, but Mortgage REITs gained 0.1%. Peakstone Realty Trust (PKST) - formerly known as Griffin Realty Trust - began trading on NYSE today through a direct listing. Peakstone is a net lease office and industrial REIT that owns 78 properties. The headline Producer Price Index posted a 0.5% month-over-month decline in March, dragging the annual increase to just 2.7%, the lowest since January 2021.

The Core PPI Index, meanwhile, recorded a month-over-month decline for the first time since May 2020. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets rallied Thursday after Producer Price data showed the sharpest monthly decline in wholesale prices in nearly three years, providing further evidence of cooling inflationary pressures. Lifting its week-to-date gains to roughly 1%, the S&P 500 rallied 1.3% today, while the Dow added 383 points, and the tech-heavy Nasdaq 100 rallied 2.0%.

The 2-Year Treasury Yield finished flat at 3.97%, while the 10-Year Treasury Yield ticked higher by 3 basis points to 3.45%. Real estate equities were laggards today despite the encouraging inflation news, with the Equity REIT Index slipping 0.4% with 8-of-18 property sectors in negative territory, but the Mortgage REIT Index gained 0.1%. After Consumer Price Index data yesterday showed a sharp cooldown in "real-time" inflation, Producer Price Index data was also significantly cooler-than-expected, showing that wholesale ...