Weekly Outlook: Housing Is Red Hot
U.S. equity markets snapped a three-week winning streak as escalating tensions with China, mediocre corporate earnings reports, and continued pandemic-related uncertainty counterbalanced another slate of stellar housing market data.
The S&P 500 declined by 0.3% this week as the tech-related "stay-at-home-winners" weighed on the large-cap index for the second-straight week while reopening-sensitive sectors continued to rally.
The steadfast strength of the U.S. housing market - perhaps the most economically-important asset class in the world - has seemingly held the fragile pieces of the global economy together.
New Home Sales surged nearly 14% in June while Existing Home Sales jumped almost 21%, the largest monthly gain on record. Homebuilders rallied as earnings reports confirmed the unremitting demand.
REITs delivered a mixed week as investors await an eventful earnings season. Five dozen REITs will report results next week across every major property sector with dividend cuts and rent collection in focus.