Stocks Slide • Super Merger • Inflation Engrained?

October 14, 2022 | Hoya Capital

Stocks Slide • Super Merger • Inflation Engrained? Real Estate Daily Recap Oct 14 Written By U.S. equity markets finished sharply lower Friday- giving back all of yesterday's rally - as another slate of disappointing economic data indicated that the window for a "soft landing" may be closing. Sliding back towards two-year lows after a late-session rally on Thursday, the S&P 500 declined 2.4% today while the tech-heavy Nasdaq 100 dipped 3.0%.

Real estate equities remained under pressure today as the 10-Year Treasury Yield closed above 4% for the first time since 2008. The Equity and Mortgage REIT Index each dipped about 2.5%. A week of disappointingly-hot inflation data continued on Friday with the University of Michigan's consumer sentiment showing that inflation expectations accelerated in early October - reversing an encouraging trend of easing over the prior five months. Supermarket chain Kroger (KR) - the second-largest grocery chain - announced an agreement to merge with Albertsons (ACI)- the fourth-largest grocery chain in a $24.6 billion all-cash merger agreement.

Kimco Realty (KIM) announced that it raised $300 million in a partial sale of its stake in Albertsons. Income Builder Daily Recap U.S. equity markets finished sharply lower Friday - giving back all of yesterday's seemingly unexplained rally - as another slate of disappointing economic data indicated that the potential window for an economic "soft landing" may be closing. Sliding back towards two-year lows after a late-session rally on Thursday, the S&P 500 declined 2.4% today - and roughly 1.5% for the week - while the tech-heavy Nasdaq 100 dipped 3.0%.

Real estate equities remained under pressure today amid a continued rise in long-term interest rates with the 10-Year Treasury Yield closing above 4% for the first time since October 2008. The Equity REIT Index dipped 2.5% today with all 18 property sectors in negative territory while the Mortgage REIT Index slipped 2.7%. Homebuilders declined another 3.8%. A week of disappointingly-hot inflation ...