The S&P 500 rallied to a record high on Monday — though real estate stocks didn’t exactly join the party.
Nareit’s All REITs index, a measure of real estate investment trusts, was down 0.53 percent. Equity REITs fell 0.6 percent, though mortgage REITs rose 0.38 percent. And the Real Estate Select Sector Index fell by 2 points by the end of the day.
Out of a mix of 28 real estate stocks tracked by The Real Deal, 15 posted gains and one stayed flat. The top performer was RE/MAX, whose stock was up almost 3 percent. The weakest was Lennar Corporation, which reported third-quarter net earnings of $513.4 million, up from $453.2 million year over year. Its stock was down almost 2.5 percent Monday.
The S&P 500 closed Monday at just over 3,039, up almost 17 points from Friday, buoyed in part by trade optimism, the prospect of another benchmark interest rate cut from the Federal Reserve this week and positive earnings calls. The index’s previous record was from late July.
“Of the S&P 500 companies that have reported over the last month, just 32 mention recession on their calls,” Sentieo’s Nick Mazing told CNBC.
Last month, the Federal Reserve slashed interest rates by 25 basis points, often widely viewed as a boost to real estate investors and a move that industry watchers anticipate will happen again when the central bank’s Federal Open Market Committee meets this week.