Alex Pettee, CFA
All Eyes On Fed With Critical Week Of Housing Data Ahead
US equity markets retreated from all-time record highs set last week. With all eyes on the Fed, investors aren’t sure whether “good news is bad news” or vice-versa.
Economic data was mixed this past week with retail sales beating estimates, but housing data remaining choppy. Homebuilder sentiment beat estimates but housing starts and permits remain soft.
Home construction has seemingly sputtered just as the largest demographic wave in America enters the housing markets in full-force, putting continued upward pressure on home prices and rents.
With a critical week of New and Existing Home Sales data ahead, a particularly strong or weak print could have significant implications for the magnitude of the Fed rate cut.
REITs delivered their third-worst week of 2019. Real estate earnings season started on a high-note, however, with another stellar quarter from logistics giant Prologis.