Key REIT and homebuilder releases this week: Reports and the FOMC (Part 1 of 6)
We finally get some important economic data
As a general rule, the week after the jobs report is very data-light. Last week was extremely dull, but we get some important information this week with the industrial production data. Housing starts and building permits are other important data points.
We also will have the FOMC meeting this week. The market expects the Fed to continue to reduce asset purchases and to maintain the Fed funds rate at current levels. The street will be parsing the FOMC statement for clues as to when rates might start increasing.
The bond market has been reacting strangely to domestic reports lately, which probably means something international is moving the market. The decision by the ECB (European Central Bank) to take deposit rates into negative territory is probably a big one.
Economic data this week
Monday, June 16
- Empire Manufacturing
- TIC flows
- Industrial production
- Capacity utilization
- Manufacturing production
- NAHB Housing Market Index
Tuesday, June 17
- Consumer Price Index
- Housing starts
- Building permits
Wednesday, June 18
- MBA Mortgage Applications
- FOMC rate decision
Thursday, June 19
- Initial jobless claims
- Bloomberg Consumer Comfort
- Philly Fed
- Index of Leading Economic Indicators
Friday, June 20
- No economic data
Earnings reports this week
- No real estate–related earnings announcements
Impact on mortgage REITs
Mortgage REITs like American Capital Agency (AGNC) and Annaly (NLY) will focus on data that will move the bond market. For them, it will be all about the Fed.
Impact on homebuilders
Builders will primarily focus on the housing starts and building permits data. Industrial production is another meaningful number for them, as it affects jobs.
Impact on commercial REITs
The most important data for commercial REITs will be retail sales, which affects mall REITs like Simon Property (SPG) and General Growth Properties (GGP). Office REITs like Brookfield Office Properties (BPO) and Vornado Realty Trust (VNO) will also focus on the industrial data, which signals future hiring trends. The FOMC meeting will also matter as they are keenly interested in when rates start increasing.
Browse this series on Market Realist:
- Part 2 - Must-know releases driving homebuilders and REITs like Annaly
- Part 3 - Why bond yields are flat after May’s reasonably strong releases
- Part 4 - Mortgage rates increase 5 basis points as bond yields increase
- Budget, Tax & Economy
- economic data