Stimulus Stall | Dividend Cut | Tech Under Scrutiny

October 6, 2020 | Hoya Capital

Stimulus Stall | Dividend Cut | Tech Under Scrutiny Daily Recap Oct 6 Written By Daily Recap U.S. equity markets pulled-back Tuesday, reversing course after an apparent break-down in fiscal stimulus negotiations while large-cap tech-stocks lagged amid antitrust scrutiny from both sides of the political aisle. After rallying 1.8% yesterday, the S&P 500 finished lower by 1.4% today while the tech-heavy Nasdaq 100 dipped 1.8% and the Dow Jones Industrial Average declined 276 points.

Following gains of 0.6% yesterday, the broad-based Equity REIT ETF (VNQ) finished lower by 0.7% today with 15 of 18 property sectors in negative territory. As previously announced, Prison REIT GEO Group (GEO) "officially" reduced their dividend from $0.48 to $0.34 per share. 65 equity REIT out of our universe 170 equity REITs have reduced or suspended their dividend in 2020. While more stimulus will certainly be appreciated by equity markets and by the Federal Reserve, strong economic data over the last several months has reduced the sense of immediate urgency to expand the already-unprecedented levels of fiscal stimulus.

Real Estate Daily Recap U.S. equity markets pulled-back Tuesday, reversing course after an apparent break-down in fiscal stimulus negotiations while large-cap tech-stocks lagged amid antitrust scrutiny from both sides of the political aisle. After rallying 1.8% yesterday on the President's recovery and return to the White House, the S&P 500 ETF ( SPY ) finished lower by 1.4% today while the tech-heavy Nasdaq 100 ( QQQ ) dipped 1.8% and the Dow Jones Industrial Average ( DIA ) declined 276 points.

Following gains of 0.6% yesterday, the broad-based Equity REIT ETF ( VNQ ) finished lower by 0.7% today with 15 of 18 property sectors in negative territory. Mortgage REITs ( REM ) declined 0.9% after gaining 0.6% yesterday. 10 of the 11 GICS equity sectors finished lower on the day, led to the downside by the Communications ( XLC ), Consumer Discretionary ( XLY ), and ...