Risk-On Sentiment • Earnings Ahead • Cell Tower M&A?

January 23, 2023 | Hoya Capital

Risk-On Sentiment • Earnings Ahead • Cell Tower M&A? Real Estate Daily Recap Jan 23 Written By U.S. equity markets finished broadly higher Monday as investors probed the likelihood of a "soft landing" and took positions ahead of a busy slate of earnings reports and economic data. Pushing its two-day rally to nearly 3%, the S&P 500 advanced 1.2% today while the tech-heavy Nasdaq 100 rallied 2.2%, lifting its two-day gains to over 4%.

Real estate equities were broadly-higher today as well with the Equity REIT Index posting gains of 0.5% with 14-of-18 property sectors in positive territory while Mortgage REITs advanced 0.4%. WP Carey (WPC) received a credit rating upgrade from S&P Global, which boosted its rating to BBB+ from BBB on expectations that its contractual rent increases and acquisitions will support further operating outperformance over the next two years despite recession risks.

American Tower (AMT) was among the laggards today after reports last Friday that it's exploring a potential bid for Cellnex - a Spanish telecom operator which operates roughly 100k communications sites across Europe with a market capitalization of roughly $25B. Income Builder Daily Recap U.S. equity markets finished broadly higher Monday as investors probed the likelihood of a "soft landing" and took positions ahead of a busy slate of corporate earnings reports and economic data.

Pushing its two-day rally to nearly 3%, the S&P 500 advanced 1.2% today while the tech-heavy Nasdaq 100 rallied 2.2%, lifting its two-day gains to over 4%. Real estate equities were broadly-higher today as well with the Equity REIT Index posting gains of 0.5% with 14-of-18 property sectors in positive territory while the Mortgage REIT Index advanced 0.4%. Homebuilders and the broader Hoya Capital Housing Index continued their strong start to 2023 ahead of results from DR Horton - the nation's largest homebuilder - tomorrow morning.

As discussed in our Real Estate Weekly Outlook , with the Federal Reserve now in ...