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Earnings season is in full swing for REITs and homebuilders

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Earnings season is in full swing

This week doesn’t have a ton of important economic data, but earnings season is in full swing—with market heavyweights like Apple (AAPL) reporting. We’ll hear from homebuilder PulteGroup (PHM) and also mall REIT giant Simon Property Group.

On the economic data front, we’ll get existing home sales on Tuesday, the FHFA Home Price Index on Thursday, and new home sales on Friday.

Existing Home Sales

Economic data this week

Monday, October 20, 2014

  • No economic data

Tuesday, October 21, 2014

  • Existing home sales

Wednesday, October 22, 2014

  • Mortgage Bankers Association (or MBA) mortgage applications
  • Consumer Price Index

Thursday, October 23, 2014

  • Initial jobless claims
  • Bloomberg Consumer Comfort Index
  • Chicago Fed National Activity Index
  • FHFA Home Price Index
  • Markit U.S. Manufacturing PMI
  • Kansas City Fed
  • Index of Leading Economic Indicators

Friday, October 24, 2014

  • New home sales

Earnings reports this week

Monday, October 20

Wednesday, October 22

Thursday, October 23

Impact on mortgage REITs

Mortgage real estate investment trusts (or REITs), such as American Capital Agency Corp. (AGNC) and Annaly Capital Management (NLY), will focus on data that will move the bond market. Most of the data this week won’t be market-moving. CYS Investments kicks off earnings season for the mortgage REIT sector on Monday. It will be interesting to see if the REITs caught this bond market rally by increasing exposure.

Impact on homebuilders

The big homebuilders like Toll (TOL) and D.R. Horton (DHI) will pay the most attention to existing home sales and Pulte’s numbers. Consumer comfort is important to the builders, so they’ll focus on the Bloomberg Consumer Comfort numbers. The builders are entering the seasonally slow period, which lasts about as long as football season.

Impact on commercial REITs

Mall REITs, such as Taubman (TCO) and General Growth Properties (GGP), will probably pay close attention to the Simon Property Group’s numbers. Office REITs, such as Boston Properties (BXP) and Vornado Real Estate Trust (VNO), will pay attention to initial jobless claims.

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