Alex Pettee, CFA
Record Day Leaves REITs Behind [Daily Recap]
U.S. equity markets rallied for the third-straight day, erasing the coronavirus-related losses over the prior two weeks, as earnings results, economic data, and domestic political developments have renewed investor optimism.
The S&P 500 finished higher by 1.1%, closing at new record highs, while the Dow Jones Industrial Average added another 480 points after yesterday's 400 point gain.
The broad-based commercial Real Estate ETF (VNQ) underperformed for the second-straight day, finishing fractionally higher and giving back it's YTD outperformance relative to the S&P 500.
Mall REITs remain in-focus after yesterday's reports that Simon Property (SPG) held merger talks with fellow mall REIT Taubman (TCO). TCO jumped another 7% on the day and is now higher by nearly 30% over the last month.
Homebuilders resumed their 2020 rally, jumping another 3%, after solid results from Taylor Morrison and mortgage market data that suggested that strong housing demand will continue.