Stimulus Hope | REIT Guidance Boost | Housing Leads Recovery

October 20, 2020 | Hoya Capital

Stimulus Hope | REIT Guidance Boost | Housing Leads Recovery Daily Recap Oct 20 Written By Daily Recap U.S. equity markets rebounded Tuesday on renewed hopes for an agreement on the elusive fiscal stimulus package while strong housing data and positive vaccine news also lifted investor optimism. Coming off declines of 1.5% yesterday, the S&P 500 finished higher by 0.4% today while the tech-heavy Nasdaq 100 gained 0.2% and the Dow Jones Industrial Average rebounded 113 points.

Following a dip of 1.6% yesterday, the broad-based Equity REIT ETF (VNQ) finished higher by 0.8% with 16 of 18 property sectors in positive territory while Mortgage REITs gained 0.7%. Housing Starts and Building Permits rose again last month as the housing industry remains the leader of the recovery. Homebuilder NVR Inc (NVR) jumped after it reported that new orders in the quarter surged by 40%. Industrial REIT Prologis (PLD) gained after boosting FFO guidance this morning.

PLD now expects Core FFO growth of 13.7% this year which will likely be the highest among large-cap REITs. Real Estate Daily Recap U.S. equity markets rebounded Tuesday on renewed hopes for an agreement on the elusive fiscal stimulus package while strong housing data and positive vaccine news also lifted investor optimism. Coming off declines of 1.5% yesterday, the S&P 500 ETF ( SPY ) finished higher by 0.4% today while the tech-heavy Nasdaq 100 ( QQQ ) gained 0.2% and the Dow Jones Industrial Average ( DIA ) rebounded 113 points.

Following a dip of 1.6% yesterday, the broad-based Equity REIT ETF ( VNQ ) finished higher by 0.8% with 16 of 18 property sectors in positive territory while the Mortgage REIT ETF ( REM ) gained 0.7% on the day. The on-again-off-again status of stimulus talks continues to whipsaw equity markets as policymakers appear primarily focused on the political calculus of any agreement ahead of next month's election. 10 of the 11 GICS equity ...