Stocks Slip • REITs Rebound • China Concerns

June 8, 2023 | Hoya Capital

Stocks Slip • REITs Rebound • China Concerns Daily Recap May 31 Written By Alex Pettee, CFA U.S. equity markets dipped Wednesday while benchmark interest rates retreated as investors weighed a better-than-expected JOLTS employment report against surprisingly soft PMI data and renewed questions over global economic growth. Trimming its monthly advance to below 0.5%, the S&P 500 finished lower by 0.6% while both the Mid-Cap 400 and the Small-Cap 600 dipped more than 1% to clinch monthly-declines.

Real estate equities were among the leaders today, benefiting from a second-straight day of receding interest rates and several solid business updates. The Equity REIT Index advanced 0.5% today. Equity Residential (EQR) was among the best-performers today after it boosted its full-year earnings outlook ahead of the annual REIT industry conference next week, citing strong demand in New York and lower than previously anticipated delinquency in southern California. JOLTS data - the first major employment report of the busy jobs week - showed that job openings unexpectedly rose in April.

PMI data today - both in the U.S. and internationally - was notably less rosy. China's official manufacturing PMI fell to a five-month low of 48.8 in April. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets dipped Wednesday while benchmark interest rates retreated as investors weighed a better-than-expected JOLTS employment report against surprisingly soft PMI data and renewed questions over global economic growth. Trimming its monthly advance to below 0.5%, the S&P 500 finished lower by 0.6% while both the Mid-Cap 400 and the Small-Cap 600 dipped more than 1% to clinch monthly declines of around 2%.

Underscoring the relatively top-heavy performance dispersion of the major benchmarks this year, the tech-heavy Nasdaq 100 gained nearly 8% on the month. Real estate equities were among the leaders today, benefiting from a second-straight day of receding interest rates and several solid business updates. The Equity REIT Index advanced 0.5% today, with ...