Stocks Slammed • Prisons Get Squeezed • REIT Earnings

January 27, 2021 | Hoya Capital

Stocks Slammed • Prisons Get Squeezed • REIT Earnings Daily Recap Jan 27 Written By Summary U.S. equity markets finished sharply lower Wednesday amid a flurry of earnings reports and Federal Reserve commentary while the ongoing "short squeeze phenomenon" raised questions regarding market stability. Posting its worst day since October, the S&P 500 finished lower by 2.6% today and the Dow Jones Industrial Average dipped 634 points. Small-Caps were a standout on the upside.

Real estate equities were relative outperformers as the Equity REIT ETFs finished lower by 1.8% today with 16-of-19 property sectors in negative territory. Prison REITs surged amid a potential short-squeeze. Prison REITs were the target of the short-squeeze traders today as CoreCivic (CXW) and GEO Group (GEO) surged more than 16% today despite reports earlier this week that President Biden plans to take executive action to scale back the federal government's use of private prisons.

Office REIT Boston Properties (BXP) dipped today after writing-off accrued rents for all tenants in the troubled co-working sector. Office REITs continue to be under pressure as the “work from home” paradigm threatens the long-term outlook. Real Estate Daily Recap U.S. equity markets finished sharply lower Wednesday amid a flurry of earnings reports and Federal Reserve commentary while the ongoing "short squeeze phenomenon" raised questions regarding market stability. Posting its worst day since October, the S&P 500 ETF ( SPY ) finished lower by 2.6% today and the Dow Jones Industrial Average ( DIA ) dipped 634 points.

The S&P Small-Cap 600 ( SLY ) was a standout on the upside. Real estate equities were relative outperformers today as the Equity REIT ETFs ( VNQ ) finished lower by 1.8% today with 16 of 19 property sectors in negative territory while the Mortgage REIT ETFs ( REM ) declined by 2.6%. Increased coronavirus restrictions in Europe and concerns over the pace of the vaccine roll-out pressured equity markets heading into the ...