Return To Office? • Casino Deal • Stocks Rebound

May 17, 2023 | Hoya Capital

Return To Office? • Casino Deal • Stocks Rebound Daily Recap May 17 Written By Alex Pettee, CFA U.S. equity markets rebounded Wednesday while the dollar climbed to five-week highs on optimism that a debt ceiling deal between Republican and Democrat negotiators could be reached before the deadline. Pushing back into positive territory for the week, the S&P 500 advanced 1.2% while the Mid-Cap 400 gained 1.8% and the Small-Cap 600 rallied 2.5%.

The Dow gained 408 points. Real estate equities rebounded today, led by strength from several beaten-down property sectors including office and mall REITs. The Equity REIT Index advanced 1.4% today, with 16-of-18 property sectors higher. Another day, another major casino deal. VICI Properties (VICI) announced today that it will acquire the real estate assets of four casinos in Canada from Century Casinos (CNTY) for C$221.7M (US$164.7M) in cash, representing an implied acquisition capitalization rate of 7.8%.

Office REITs rebounded today after Blackrock asked its roughly 20k employees to return to the office at least four days per week, providing some hope that the sluggish "return to the office" may be gathering some momentum as labor market conditions loosen. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets rebounded Wednesday while the dollar climbed to five-week highs on optimism that a debt ceiling deal between Republican and Democrat negotiators could be reached before the June 1 deadline.

Pushing back into positive territory for the week, the S&P 500 advanced 1.2% while the Mid-Cap 400 gained 1.8% and the Small-Cap 600 rallied 2.5%. The Dow gained 408 points. Real estate equities rebounded today, led by strength from several beaten-down property sectors including office and mall REITs. The Equity REIT Index advanced 1.4% today, with 16-of-18 property sectors in positive territory, while the Mortgage REIT Index rallied nearly 3%.

Homebuilders and the broader Housing Index were also upside standouts. Bonds remained under pressure today, however, as decent ...