REITs Rebound | Stimulus Talks | Hope For Bankrupt Malls

December 1, 2020 | Hoya Capital

REITs Rebound | Stimulus Talks | Hope For Bankrupt Malls Daily Recap Dec 1 Written By Summary U.S. equity markets rebounded Tuesday with the major averages eclipsing fresh all-time highs on continued positive developments in vaccine deployment and following reports of a resumption of long-stalled stimulus talks. Closing at fresh record-highs and extending its historic November rally, the S&P 500 gained 1.1% today while the Dow Jones Industrial Average gained 185 points.

Real estate equities were among the leaders today as the Equity REIT ETF (VNQ) gained 1.3% with all 18 property sectors in positive territory and Mortgage REITs (REM) gained 0.9%. Bankrupt mall landlord Pennsylvania REIT (PEI) finished lower by 2% after a pre-market jump on reports that it expects to emerge from Chapter 11 bankruptcy early in December. PEI has lost 80% of its value this year and 95% over the past five years.

Construction spending data this morning confirmed that U.S. housing industry continues to be one of the driving forces behind the early post-pandemic economic recovery. Residential construction spending was 14.5% higher in October than the prior year, which offset an 8.2% dip in nonresidential spending. Real Estate Daily Recap U.S. equity markets rebounded Tuesday with the major averages eclipsing fresh all-time highs on continued positive developments in vaccine deployment and following reports of a resumption of long-stalled stimulus talks.

Closing at fresh record-highs and extending its historic November rally, the S&P 500 ETF ( SPY ) gained 1.1% today while the Dow Jones Industrial Average ( DIA ) gained 185 points following yesterday's 272-point dip. Real estate equities were among the leaders today as the Equity REIT ETF ( VNQ ) gained 1.3% with all 18 property sectors in positive territory. Mortgage REITs ( REM ), meanwhile, gained 0.9% following a decline yesterday.

December began on a positive note for Mid-Cap ( MDY ) and Small-Cap ( SLY ) stocks, as well, following a record-setting ...