- The major averages are on track to set new records at the close, but the REITs (IYR -0.7%) are underperforming by a mile again on interest rate concerns.
- Late yesterday, FRBNY President Bill Dudley was sounding very hawkish, and this morning's core CPI report came in faster than expected. The two-year Treasury yield subsequently jumped above 2% for the first time since 2008.
- Short-term rate markets have only been expecting two rate hikes this year, and have now just begun pricing in a third. Judging from Dudley's talk yesterday, they may want to consider a fourth.
- On a year-to-date basis the IYR is lower by nearly 5%, underperforming the SPY (NYSE:SPY) by 900 basis points.
- Welltower (HCN -1.6%), Ventas (VTR -2.3%), Healthcare Trust (HTA -1.3%), National Retail (NNN -1.1%), Essex Property (ESS -1.9%), Weingarten Realty (WRI -0.8%), Kite Realty (KRG -0.9%), Public Storage (PSA -1.1%), Gramercy Property (GPT -1.6%)
- ETFs: VNQ, IYR, RQI, SCHH, RNP, RFI, KBWY, DRN, NRO, URE, ICF, XLRE, JRS, RWR, SRS, FREL, DRA, DRV, RIF, LRET, REK, RIT, FRI, FTY, PSR
- Now read: Ventas Is Nice But We Prefer A Pure MOB Scene
Original article