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- The Daily REITBeat | Friday, October 18th, 2024
The Daily REITBeat | Friday, October 18th, 2024
"Extending Gains?"
David Auerbach
October 18, 2024
Good Morning!
Dow futures down over 25 points at the time of this writing as talking heads focus on Dow hitting all-time high, Apple iPhone China sales, Netflix earnings, small-cap stock performance, and a big earnings calendar coming due next week.
From Bloomberg
"US stock futures ticked higher as a recovery in Big Tech looked set to extend Friday, thanks to results from Netflix Inc. that eclipsed Wall Street’s expectations.
Contracts on the tech-heavy Nasdaq 100 rose 0.5%, as Netflix jumped 6% in US premarket trading. The streaming company beat expectations on key metrics, including subscriber additions in the third quarter. Apple Inc. rose as data showed China sales of its latest iPhone increased 20% in the first three weeks compared with the 2023 model.
Treasuries steadied from their heavy selling after a batch of strong data on the US economy Thursday recast expectations for interest-rate cuts. Stronger than forecast retail sales underscored how consumer spending continues to power the American economy, lessening the urgency for the Federal Reserve to unwind restrictive rate policy.
One beneficiary of the improving US economic narrative has been small-cap stocks. The Russell 2000 index is close to reclaiming a 2024 high as weakening inflation spurs bets the Fed has room to cut rates, albeit not by as much as previously thought.
Small caps are also getting a boost from the so-called Trump Trade, according to Bank of America Corp. strategist Michael Hartnett. In a note, he said there are signs investors are positioning for presidential victory by Donald Trump, moving into banks, small-cap stocks and the dollar, assets that rallied in November 2016 in the wake of his last successful run.
Bitcoin, another favored Trump Trade, also closed in on a fresh record.
A broadening out of the stock rally beyond tech megacaps would be a development that Gene Salerno, chief investment officer at SG Kleinwort Hambros Ltd. said he’d welcome.
“It’s something frankly we’ve wanted to see for some time,” he said."
In REIT News
Berenberg reinstates GMRE ($11.75) and OHI ($45) with Buy ratings
Alliance Global Partners initiates SELF with a Buy rating ($6.50 price target)
PINE announced 3Q earnings
Moody’s affirmed SBRA’s “Ba1” corporate family rating and backed senior unsecured notes rating of the limited partnership and revised its outlook to positive from stable
Yesterday, S&P lowered PDM’s issuer credit rating to “BB+” from “BBB-“ and affirmed its “BBB-“ issue-level rating on the senior unsecured notes with a stable outlook
Yesterday morning, Fitch Ratings affirmed EQIX’s Long-Term Issuer Default Rating at “BBB” with a stable outlook
Next Week’s REIT Earnings Calendar
MONDAY 10/21
Earnings Post-Market: ARE, ELS, ESRT
TUESDAY 10/22
Earnings Post-Market: ADC, BDN, HIW, ROIC
WEDNESDAY 10/23
Earnings Post-Market: EGP, EPRT, EQC, GTY
THURSDAY 10/24
Earnings Post-Market: ALEX, CTO, CUZ, DLR, DOC, GLPI, PDM, PECO, WY
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David Auerbach & Mary Jensen