Short Squeeze Fizzles • REIT Earnings Update

January 28, 2021 | Hoya Capital

Short Squeeze Fizzles • REIT Earnings Update Daily Recap Jan 28 Written By Summary U.S. equity markets rebounded Thursday on another volatile day as the "short squeeze phenomenon" appeared to climax while investors parsed a frenetic slate of economic data and earnings reports. Following declines of 2.6% yesterday, the S&P 500 finished higher by 1.0% today and the Dow Jones Industrial Average rebounded by 300 points following yesterday's 634-point decline.

Led by the COVID-sensitive property sector, real estate equities were mostly higher today as the Equity REIT ETFs gained 0.5% today with 12 of 19 property sectors in positive territory. The short squeeze saga reached a fever pitch after major brokerage firms including Robinhood and Interactive Brokers restricted the purchase of a basket of the heavily-shorted surging stocks including GameStop (GME) and AMC Entertainment (AMC), igniting a social media shockwave.

Homebuilders were under pressure today despite another solid slate of housing data and earnings reports. New Home Sales in December were higher by 15.2% from last December while median prices jumped 8%. Real Estate Daily Recap U.S. equity markets rebounded Thursday on another volatile day as the "short squeeze phenomenon" appeared to climax while investors parsed a busy slate of economic data and corporate earnings reports. Following declines of 2.6% yesterday, the S&P 500 ETF ( SPY ) finished higher by 1.0% today and the Dow Jones Industrial Average ( DIA ) rebounded by 300 points following yesterday's 634-point decline.

Led by the COVID-sensitive property sector, real estate equities were mostly higher today as the Equity REIT ETFs ( VNQ ) gained 0.5% today with 12 of 19 property sectors in positive territory while the Mortgage REIT ETFs ( REM ) rebounded by 1.3%. The short squeeze saga reached a fever pitch after major brokerage firms including Robinhood and Interactive Brokers restricted the purchase of a basket of the heavily-shorted surging stocks including GameStop ( GME ) and AMC Entertainment ...