Retail Sales • Homebuilder Sentiment • Debt Talks

May 16, 2023 | Hoya Capital

Retail Sales • Homebuilder Sentiment • Debt Talks Daily Recap May 16 Written By Alex Pettee, CFA U.S. equity markets slumped Tuesday as investors awaited updates on debt ceiling negotiations and parsed a generally-upbeat slate of economic data showing resilience in retail spending and a housing market rebound. Giving back yesterday's advance of 0.3%, the S&P 500 slipped 0.6% today while the Mid-Cap 400 dipped 1.5% and the Small-Cap 600 declined 0.9%.

The Dow dipped 336 points. Pressured by a rise in benchmark interest rates, real estate equities were among the laggards today, as the Equity REIT Index slipped 2.5% today, with all 18 property sectors in negative-territory. NAHB Homebuilder Sentiment - a leading indicator of housing market activity - rose for a fifth-straight month in May, which follows a stretch of thirteen straight monthly declines. Retail sales data this morning provided mixed signals on the state of the U.S. consumer, showing that spending rose at a weaker-than-expected pace in April, but the "miss" was largely driven by reduced spending at gasoline stations.

Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets slumped Tuesday as investors awaited updates on debt ceiling negotiations and parsed a generally-upbeat slate of economic data showing resilience in retail spending and a housing market rebound. Giving back yesterday's advance of 0.3%, the S&P 500 slipped 0.6% today while the Mid-Cap 400 dipped 1.5% and the Small-Cap 600 declined 0.9%. The tech-heavy Nasdaq 100 managed to eke out a modest gain, but the Dow dipped 336 points.

Pressured by a rise in benchmark interest rates, real estate equities were among the laggards today, as the Equity REIT Index slipped 2.5% today, with all 18 property sectors in negative territory, while the Mortgage REIT Index finished higher lower 1.5%. Homebuilders were again among the leaders, however, after homebuilder sentiment data showed a fifth-straight monthly advance after dipping to near-15-year lows last year. Bonds traded ...