Tax Hike Worries • Housing Shortage • REIT Earnings

April 22, 2021 | Hoya Capital

Tax Hike Worries • Housing Shortage • REIT Earnings Daily Recap Apr 22 Written By Summary U.S. equity markets retreated Thursday on reports that President Biden is considering doubling the top capital gains tax rate while investors parsed a busy slate of corporate earnings reports. Pulling its week-to-date declines to 1.2%, the S&P 500 declined by 0.9% today while the Mid-Cap 400 pulled back by 0.5% and the Small-Cap 600 declined by 0.6%.

Real estate equities were mostly lower - but were still among the outperformers - with the broad-based Equity REIT Index finishing lower by 0.5% with 15-of-19 property sectors in negative-territory. Housing Shortage: Existing Home Sales data showed that the median sales price in March rose by a record-breaking annual pace of 17.2% with all regions posting double-digit price gains. Properties typically sold in 18 days, a record low. Cell tower REIT Crown Castle (CCI) and homebuilders DR Horton (DHI) and Tri Pointe (TPH) all reported impressive "beat-and-raise" earnings results over the last 24 hours.

Office and retail REITs reported mixed results. Real Estate Daily Recap U.S. equity markets retreated Thursday on reports that President Biden is considering doubling the top capital gains tax rate while investors parsed a busy slate of corporate earnings reports and economic data. Pulling its week-to-date declines to 1.2%, the S&P 500 ETF ( SPY ) declined by 0.9% today while the Mid-Cap 400 ( MDY ) pulled back by 0.5% and the Small-Cap 600 ( SLY ) declined by 0.6%.

Real estate equities were mostly lower - but were still among the outperformers - with the broad-based Equity REIT ETFs ( VNQ ) finishing lower by 0.5% with 15-of-19 property sectors in negative territory while Mortgage REITs ( REM ) finished lower by 0.2%. Equity markets turned lower mid-day on the tax hike reports after flirting with fresh intra-day records earlier in the session following better-than-expected jobless claims data and continued stabilization ...