Rates Rise • Strong Jobs Data • REIT Updates

July 6, 2023 | Hoya Capital

Rates Rise • Strong Jobs Data • REIT Updates Daily Recap Jul 6 Written By Alex Pettee, CFA U.S. equity markets finished lower Thursday after a strong slate of employment data strengthened the case for additional monetary tightening, lifting benchmark interest rates towards the highest-levels of the year. Slumping for a second-straight day and erasing its week-to-date gains, the S&P 500 slipped 0.8% today, while the Mid-Cap 400 and Small-Cap 600 each posted declines of over 1%.

Real estate equities were among the laggards as the recent surge in interest rates has curbed much of the sector's positive end-of-quarter momentum. The Equity REIT Index dipped nearly 1%. Interest rates rose on data showing continued resilience across labor markets, even as a historically-swift pace of monetary tightening has resulted in a "rolling recession" across several key industries including housing, transportation, and manufacturing. Sotherly Hotels (SOHO) was among the leaders today after it provided preliminary second-quarter operating metrics, noting that its Revenue Per Available Room ("RevPAR) increased to $131.16, which was 5% higher than last year and roughly 4% above pre-pandemic 2019-levels.

Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets finished lower Thursday after a strong slate of employment data strengthened the case for additional monetary tightening, lifting benchmark interest rates towards the highest levels of the year. Slumping for a second-straight day and erasing its week-to-date gains, the S&P 500 slipped 0.8% today, while the Mid-Cap 400 and Small-Cap 600 each posted declines of over 1%. The tech-heavy Nasdaq 100 finished lower by 0.8% today, while the Dow dipped 366 points.

Real estate equities were among the laggards today as the recent surge in benchmark interest rates has curbed much of the sector's positive end-of-quarter momentum. The Equity REIT Index finished lower by 0.8% today, with 14-of-18 property sectors in negative territory, while the Mortgage REIT Index fell 2.3%. Homebuilders declined nearly 4% as mortgage rates rose ...