Relief Rally • U.K. U-Turn • Earnings Ahead

October 17, 2022 | Hoya Capital

Relief Rally • U.K. U-Turn • Earnings Ahead Real Estate Daily Recap Oct 17 Written By U.S. equity and bond markets rebounded Monday after decent results from Bank of America and a shift toward fiscal tightening in the U.K. helped to abate the seemingly relentless selling pressure. Entering the week on the cusp of two-year lows amid a stretch of seven-of-nine weekly declines, the S&P 500 rebounded 2.7% today while the tech-heavy Nasdaq 100 gained 3.3%.

Real estate equities finally caught a bid today as earnings season kicks-off this afternoon. The Equity REIT Index rallied 3.8% today with all 18 property sectors in positive territory. Manufactured housing REIT Equity Lifestyle (ELS) kicks-off earnings season this afternoon. REITs enter third-quarter earnings season with the lowest Price-to-FFO valuations - and highest dividend yields - since the Financial Crisis. As corporate earnings season kicks into gear, we'll also see another busy slate of economic data in the week ahead with the U.S. housing market in focus - the industry that is bearing the brunt of the aggressive tightening path through the historic surge in mortgage rates.

Income Builder Daily Recap U.S. equity and bond markets rebounded Monday after decent results from Bank of America and a shift toward fiscal tightening in the U.K. helped to abate the seemingly relentless selling pressure. Entering the week on the cusp of two-year lows amid a stretch of seven-of-nine weekly declines, the S&P 500 rebounded 2.7% today while the tech-heavy Nasdaq 100 gained 3.3%. Real estate equities finally caught a bid today as earnings season kicks-off this afternoon while the 10-Year Treasury Yield remained flat at around 4.0%.

The Equity REIT Index rallied 3.8% today with all 18 property sectors in positive territory while the Mortgage REIT Index gained 2.2%. As discussed in our Real Estate Weekly Outlook , there's hope that earnings season - and perhaps midterm elections - may be catalysts to finally form the ...