Real Estate Daily Recap: REITs Climb 1%, But End Week Lower by 3%, Worst Week of 2019
The Hoya Capital US REIT Index finished the day higher by 1.0%, recovering after two straight days of losses. The student housing, industrial, and manufactured housing REIT sectors led the way on the day, each climbing by 1.5% or more. The cell tower, data center, and hotel REIT sectors were the relative laggards on the day. The S&P 500 finished the day higher by 0.2% and is still within about 1% of all-time record highs. The Nasdaq finished higher by 0.1%. At 2.56%, the 10-Year Yield finished the day lower by 3 basis points on the day and remains roughly 70 basis points lower than it's peak last October.
The Hoya Capital US Housing Index finished the day higher by 0.3%, led to the upside by the Homebuilders and Residential REIT sectors. Eagle Materials (EXP), Beacon Roofing (BECN), HCP (HCP), Travelers (TRV), and Sherwin-Williams (SHW) were the top-performers on the day.
The Home Improvement Retail and Home Furnishings sectors were the relative underperforms on the day. Sleep Number (SNBR) finished sharply lower after reporting disappointing earnings yesterday afternoon, while Restoration Hardware (RH), Overstock (OSTK), and La-Z-Boy (LZB) were lower in synchrony. Despite this week's performance, the Home Furnishings sector remains higher by nearly 26% this year.
On the week, REITs retreated nearly 3% while Homebuilders climbed by a similar amount. The Hoya Capital US Housing Index ended the week lower by 0.6%. The S&P 500 finished mildly lower while the Nasdaq climbed. 0.8%. Interest rates generally held steady with the 10-Year yield finishing flat on the week.
Retail Sales data was released today and come in better-than-expected. Our analysis will be published in tomorrow's Real Estate Weekly Review. While the equity market will be closed tomorrow, Housing Starts and Permits data will be released tomorrow morning while New Home Sales data is released next Tuesday.
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