Peak Bearishness? • Stocks Rebound • REIT Earnings

July 19, 2022 | Hoya Capital

Peak Bearishness? • Stocks Rebound • REIT Earnings Real Estate Daily Recap Jul 19 Written By U.S. equity markets ripped higher Tuesday with broad-based gains as a decent start to earnings season and signs of cooling price pressures sparked optimism amid a backdrop of historically bearish investor sentiment. Rebounding from 1% declines yesterday and posting its best day in three weeks, the S&P 500 rallied 2.8% today while the tech-heavy Nasdaq 100 advanced more than 3%.

Real estate equities were broadly-higher today as well with the Equity REIT Index advancing 2.6% today with 17-of-18 property sectors in positive territory while the Mortgage REIT Index gained 3.4%. Not unusual during the lower-volume summer trading sessions, the significant intra-day market swings over the past two days have lacked a clearly identifiable catalyst. An investor sentiment survey by Bank of America showed historically bearish sentiment levels, which is typically viewed as a positive indicator for future returns.

Equity Lifestyle (ELS) was among the laggards today after reporting mildly disappointing results yesterday afternoon - a rare "miss" for a manufactured housing REIT. A slowdown in RV seasonal and transient demand amid surging gas prices was behind the weakness. Income Builder Daily Recap U.S. equity markets ripped higher Tuesday with broad-based gains as a decent start to corporate earnings season and signs of cooling price pressures sparked some optimism amid a period of historically bearish investor sentiment.

Rebounding from 1% declines yesterday and posting its best day in three weeks, the S&P 500 rallied 2.8% today while the tech-heavy Nasdaq 100 advanced more than 3%. Real estate equities were broadly-higher today as well with the Equity REIT Index advancing 2.6% today with 17-of-18 property sectors in positive territory while the Mortgage REIT Index gained 3.4%. Not unusual during the lower-volume summer trading sessions, the significant intra-day market swings over the past two days have lacked a clearly identifiable catalyst.

Perhaps sparking some of the optimism ...