PPI Cools • Jobless Claims Jump • REIT Earnings Recap

May 9, 2023 | Hoya Capital

PPI Cools • Jobless Claims Jump • REIT Earnings Recap Daily Recap May 11 Written By Alex Pettee, CFA U.S. equity markets slipped Thursday while benchmark interest rates declined after another encouraging read on the inflation-front via Producer Price Index data was offset by a surprisingly weak employment report. Erasing its week-to-date gains, the S&P 500 declined 0.2% today, while the Mid-Cap 400 and the Small-Cap 600 posted steeper declines of 0.7% and 0.9%, respectively.

The Dow dipped 222 points. Real estate equities were among the laggards today despite the retreat in interest rates as the Equity REIT Index slipped 1.1% today with 16-of-18 property sectors in negative territory. After Consumer Price Index data yesterday showed a continued cooldown in inflationary pressures, Producer Price Index data was also cooler-than-expected, showing that wholesale prices rose by just 2.3% year-over-year, the slowest annual increase since January 2021.

Apartment REIT Independence Realty (IRT) raised its dividend by 14%, becoming the 49th REIT to raise its dividend this year. As discussed in our Earnings Recap, we've now seen 15 REITs cut their dividend this year. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets slipped Thursday while benchmark interest rates declined after another encouraging read on the inflation-front via Producer Price Index data was offset by a surprisingly weak employment report.

Erasing its prior week-to-date gains, the S&P 500 declined 0.2% today, while the Mid-Cap 400 and the Small-Cap 600 posted steeper declines of 0.7% and 0.9%, respectively. The Dow dipped 222 points. Bonds rallied for a second-straight day with the 2-Year Treasury Yield finishing the day at 3.90% while the 10-Year Yield retreated 7 basis points to 3.40%. Real estate equities were among the laggards today despite the retreat in interest rates as the Equity REIT Index slipped 1.1% today with 16-of-18 property sectors in negative territory, while the Mortgage REIT Index finished flat.

After Consumer Price Index data yesterday ...