Goldilocks Job Report Revives Real Estate
After snapping a six-week winning streak on flaring geopolitical tensions, U.S. equity markets picked up where they left off in 2019 with broad advances and new record highs this week.
The S&P 500 gained 1.0% on the week while the tech-heavy Nasdaq climbed 2.0%. The 10-Year Treasury Yield ended the week higher by 4 basis points to close at 1.83%.
The BLS employment report showed that job growth was slightly weaker than expected in December while wage gains cooled to the slowest rate of growth since July 2018.
The "Goldilocks" jobs report was good news for real estate and other yield-sensitive equity sectors. REITs delivered a strong rally after the report to close the week in positive territory.
Homebuilders were the standout this week, surging nearly 3% on strong earnings reports from entry-level-focused homebuilders Lennar and KB Home, powered by low mortgage rates and strong demographic-driven demand.