mREITs a mixed bag in Monday trading
HW 30 improves overall after Summers drops out of Fed chief race
Monday was a solid day for the HW 30 index — HousingWire’s exclusive index of stocks impacting the housing economy — which rose a modest 0.89% by market close. In comparison, the Nasdaq closed down 0.12%, while the S&P 500 was up 0.57% by the end of trading.
Real estate investment trusts showed mixed results across the board, with many of the REIT stocks down after growing for several days. The market as a whole performed well, with the S&P 500 shooting up above 1,700 in morning trading on news that Larry Summers would no longer be in the running to serve as Federal Reserve chairman.
Summers has long been considered a fiscal hawk, who favors a more aggressive tapering when it comes to mortgage-backed securities and Treasury purchases.
After showing vast improvement over the past week, American Capital Agency Corp. (AGNC) took a tumble on Monday. The company opened the day at $24.24, but ended the day at $23.39, a drop of 1.47% on the HW 30 index.
Year-to-date, the mREIT is down 22.93%, causing Sandler O’Neill to downgrade the stock from Hold to Sell on Monday.
Annaly Capital Management (NLY), yet another mREIT on the index, fell 0.67% on Monday. Annaly opened the day at $12.30, but closed it at $11.92. The mREIT has seen little improvement this year, down 16.76% year-to-date.
Over the past 12 months, the stock is down 31.42%, while it’s taken a 24.03% dip just over the past six months.
The three other mREITs on the HW 30 index all had a positive experience on Monday. Redwood Trust (RWT) ended the day 0.89% higher than it started. The stock has consistently improved since September 12 — one day after shares of the stock were yielding above the 6% mark based on its quarterly dividend (annualized to $1.12).
Two Harbors Investment (TWO), which has been volatile since SmarTrend deemed it as Sell, had a strong Monday, up 1.45% at the end of the day. However, year-to-date the stock is down 15.08%. Two Harbors opened the day at $9.85 per share and closed at $9.80.