Stocks Slide • REIT Earnings • Housing Rebound

April 25, 2023 | Hoya Capital

Stocks Slide • REIT Earnings • Housing Rebound Daily Recap Apr 25 Written By Alex Pettee, CFA U.S. equity markets finished sharply lower Tuesday while benchmark interest rates retreated after First Republic Bank plunged following disappointing first quarter results, sparking renewed financial stability concerns. Posting its worst one-day decline since mid-March, the S&P 500 slid 1.6% today, while Mid-Cap 400 declined 1.9% and the Small-Cap 600 dipped 2.6%. The Dow dipped 344 points.

Real estate equities were among the better-performers today, buoyed by a retreat in benchmark interest rates and a solid slate of earnings reports. The Equity REIT Index declined 1.0%. New Home Sales rose to the highest level in a year in March. PulteGroup (PHM) - the fourth largest homebuilder in the nation - was among the top-performers today after its results easily topped consensus estimates. Strip Center REIT Site Centers (SITC) was also among the best performers today after reporting strong first quarter results and raising its full-year guidance.

Lab space owner Alexandria Real Estate (ARE) and apartment REIT NexPoint Residential (NXRT) slipped 3% after reporting mixed results. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets finished sharply lower Tuesday while benchmark interest rates retreated after First Republic Bank plunged following disappointing first-quarter results, sparking renewed financial stability concerns. Posting its worst one-day decline since mid-March, the S&P 500 slid 1.6% today, while Mid-Cap 400 declined 1.9% and the Small-Cap 600 dipped 2.6%.

Real estate equities were among the better-performers today, buoyed by a retreat in benchmark interest rates and a solid slate of earnings reports. The Equity REIT Index declined 1.0% today, with 16-of-18 property sectors in negative territory, while the Mortgage REIT Index declined 2.5%. Homebuilders were upside standouts following a strong report from PulteGroup and data showing that New Home Sales rose to the highest level in a year in March.

The CBOE Volatility Index ( VIX ) surged 15% ...