SRVR - More Questions Than Answers
2024-02-04 09:00:00 ET
Summary
- U.S. equity markets were mixed on a choppy week, while long-term benchmark interest rates dipped as investors weighed hawkish Fed commentary, renewed banking concerns, and conflicting signals across employment reports.
- Extending its impressive rally since late October to 13 of the past 14 weeks, the S&P 500 advanced another 1.4% this week, closing the week at fresh record-highs.
- Real estate equities were among the laggards this week as a renewed drumbeat of negative attention amid regional bank stress offset a generally solid start to REIT earning season.
- Raising more questions than answers and potentially complicating matters for the Fed, the BLS nonfarm payrolls report showed a reacceleration in job growth and wages in January, clashing with other reports showing a definitive cooling across labor markets and an uptick in corporate layoffs.
- Residential REITs were the upside surprise of the first full week of REIT earnings, reporting relatively buoyant rent growth amid oversupply concerns. Office REITs fell sharply despite a decent slate of results showing a pick-up in leasing activity in late 2023.
Real Estate Weekly Outlook
U.S. equity markets were mixed on a choppy week, while long-term benchmark interest rates dipped sharply as investors weighed hawkish commentary from Federal Reserve Chair Powell, renewed regional banking concerns, and conflicting signals across a critical slate of employment reports. Raising more questions than answers and potentially complicating matters for the Fed, the critical nonfarm payrolls report showed impressive "headline" metrics, including a reacceleration in job growth and wages in January, clashing with other reports this week showing a definitive cooling across labor markets and a notable uptick in corporate layoff announcements....
More Questions Than Answers