With inflationary pressures affecting all major indices, real estate stocks suffered a slight loss this week.
The Producer Price Index advanced 0.3% in January, compared to the expected increase of 0.1% and accelerating from the 0.1% decline in December, while the Consumer Price Index rose 0.3% in January, exceeding the expected +0.2% and accelerating slightly from the +0.2% pace in December.
With inflation holding steady, traders are reducing bets on a rate cut in May.
“There is a significant chance – maybe 15% – that the (Federal Reserve's) next move will be to raise rates, not lower them,” former Treasury Secretary Lawrence Summers said in an interview Friday, citing a number of factors. “disturbing.” inflationary pressures.
The Dow Jones Industrial Average closed at 38,627.99 on Friday. 0.11% down from a week ago, while the NASDAQ Composite Index fell 1.34% at 15,775.65.
The S&P 500 fell 0.42% W/W will close at 5,005.57, when the index had gained ~5% from the beginning of 2024.
XLRE, which tracks S&P 500 real estate stocks, fell one 0.15% last week to close at 38:35. The index has gone down 4.27% THE LAST YEAR.
The ETF recorded net inflows of $147.22 million this week, compared with outflows of $13.06 million the previous week, according to data from data solutions provider VettaFi. presented.
Real estate services provider CBRE Group (CBRE) and healthcare REIT Welltower (WELL) were the biggest gainers for the week, boosted by strong fourth-quarter results. Data center REIT Digital Realty Trust (DLR) and telecom tower REIT SBA Communications (SBAC) were the week's top losers.
Brixmor Property Group (BRX), Safehold (SAFE), Zillow Group (Z)(ZG), STAG Industrial (STAG), Blackstone Mortgage Trust (BXMT), Chimera Investment (CIM) and Opendoor Technologies (OPEN) were the earnings winners notable. of the week.
Among subsectors, Office and Healthcare gained the most. Here's a look at the subsector's performance:
