uploads/2014/11/Nonfarm-Payrolls.png

The week ahead: Jobs plus Annaly and other mortgage REIT earnings

By

Updated

Earnings season is in full swing

We have a big week ahead, with a slew of important economic data and earnings from the mortgage REIT sector. The biggest REIT will be Annaly Capital reporting on Wednesday. We’ll also hear from office REIT giant Vornado (VNO) as well as Fannie Mae and Freddie Mac.

Nonfarm Payrolls

In economic data, we’ll get the ISM data, construction spending, and the all-important jobs report on Friday. The market will focus most on average hourly earnings, since that’s what will most likely drive inflation and the Fed’s thinking going forward.

Economic data this week

Monday, November 3, 2014

  • ISM US Manufacturing PMI
  • Markit US Manufacturing PMI
  • Construction spending

Tuesday, November 4, 2014

  • Trade balance
  • ISM New York
  • Factory orders
  • IBD/TIPP Economic Optimism

Wednesday, November 5, 2014

  • Mortgage Bankers Association (or MBA) mortgage applications
  • ADP Employment Change
  • Markit US Services PMI
  • Markit US Composite PMI
  • ISM Non-Manufacturing Index

Thursday, November 6, 2014

  • Initial jobless claims
  • Bloomberg Consumer Comfort Index
  • Challenger Job Cuts
  • Non-farm productivity
  • Unit labor costs

Friday, November 7, 2014

  • Non-farm payrolls
  • Unemployment rate
  • Labor force participation rate
  • Average hourly earnings
  • Average weekly hours
  • Consumer credit

Earnings reports this week

Monday, November 3

  • Vornado Realty Trust (VNO)

Tuesday, November 4

  • Newcastle Investment Trust (NCT)
  • MFA Financial (MFA)

Wednesday, November 5

  • Annaly Capital (NLY)
  • Ivesco Mortgage Capital (IVR)

Thursday, November 6

  • Walter Investment Management (WAC)
  • Northstar Realty (NRF)
  • Nationstar (NSM
  • New Residential Investment Corp. (NSAM)
  • Redwood Trust (RWT)

Friday, November 7

Impact on mortgage REITs

Article continues below advertisement

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. For them, it will be all about the jobs report meeting on Friday. Annaly Capital reports earnings on Wednesday. We’ll see if it ends up maintaining its dividend or if it has to cut its dividend.

Impact on homebuilders

The big homebuilders, like Toll (TOL) and D.R. Horton (DHI), will pay the most attention to construction spending and also the jobs report. The job market is a big driver of the real estate market.

Impact on commercial REITs

Mall REITs, such as Taubman (TCO), will probably pay close attention to the IBD/TIPP Economic Optimism index to get a read on consumer spending heading into the all-important holiday shopping season. Office REITs, such as Boston Properties (BXP) and S.L Green (SLG), will be interested in the ISM Services index and also Vornado’s numbers.

Advertisement

More From Market Realist