|Volatile Dow Closes Up 567 Points After a Rocky Day of Trading Following Monday’s Historic Drop
U.S. stocks bounced up in the final hour of trading Tuesday after a rocky morning that saw the Dow Jones industrial average dip into correction territory.After a big swing of more than 1,168 points during the day, the Dow landed up 2.3 percent, or 567 points, to finish at 24,914.
“Volatility is back,” said Jamie Cox of Harris Financial Group. “It’s not back in a big way, but it’s not going to be dormant like it was in 2017. That’s the real story.”
While navigating volatile trading, money managers urged investors to keep calm and noted that the U.S. and global economies remain strong. On Tuesday, major companies reported another round of strong profits, with General Motors, BP, Allergan, health-care companies and others beating analysts’ expectations.
Veteran traders and stock strategists say the slide in stock prices over the past week is a natural dip. The market had run up too high, too fast and needed to let off some steam, they say.
read more: WaPo
Rental Glut Makes NYC the Worst Performer for Equity Residential
Equity Residential has a New York story, and it doesn’t have a happy ending—at least, not yet.
The metro area, where developers are churning out thousands of new rentals, and tenants have the luxury to bargain, was the only one that showed a decline in rent for the publicly traded landlord in 2017.
“New York was our worst-performing market,” David Neithercut, the firm’s chief executive officer, said on a conference call last week. “We still expect New York to be our worst-performing market.”
All told, about 19,000 newly developed apartments will be listed for rent this year in the New York City metro area, the company’s chief operating officer, David Santee, said on the call. Of that total, 62 percent will be in Brooklyn and Long Island City. The discounts that landlords may have to offer to get those units filled might push down rents in Manhattan, Santee said.
Equity Residential’s average rent in the New York area declined 0.3 percent in the fourth quarter from a year earlier, the company reported in earnings results last week. That’s not bad compared to a 5.4 percent decline in northwest Queens, for example, for all apartments rented there in December, according to Douglas Elliman Real Estate and Miller Samuel Inc.
read more: NREI
U.S. Consumer Protection Official Puts Equifax Probe On Ice
Mick Mulvaney, head of the Consumer Financial Protection Bureau, has pulled back from a full-scale probe of how Equifax Inc failed to protect the personal data of millions of consumers, according to people familiar with the matter.
Equifax (EFX.N) said in September that hackers stole personal data it had collected on some 143 million Americans. Richard Cordray, then the CFPB director, authorized an investigation that month, said former officials familiar with the probe.
But Cordray resigned in November and was replaced by Mulvaney, President Donald Trump’s budget chief. The CFPB effort against Equifax has sputtered since then, said several government and industry sources, raising questions about how Mulvaney will police a data-warehousing industry that has enormous sway over how much consumers pay to borrow money.
The CFPB has the tools to examine a data breach like Equifax, said John Czwartacki, a spokesman, but the agency is not permitted to acknowledge an open investigation. “The bureau has the desire, expertise, and know-how in-house to vigorously pursue hypothetical matters such as these,” he said.
read more: Reuters
Demand Remains Steady for Single-Family Rentals
Occupancy rates for single-family rental (SFR) homes are remaining largely flat.
“Supply levels remain tight driven by solid demand, with occupancy rates hovering around 95 percent in many top markets,” says Rick Palacios, Jr., director of research with John Burns Real Estate Consulting, a research and consulting firm based in Irvine, Calif.
A strong economy is helping drive demand. But rents are not growing as quickly as they used to. For-sale houses have emerged as a greater source of competition for existing SFR assets, along with new houses that are being built to be rented.
However, rents do continue to grow in most metro areas, and the vast majority of SFRs are occupied.
“We’re continuing to see steady rental demand, especially in urban areas, where nearly a quarter of the country’s largest cities are now majority-renter,” says Diane Tomb, executive director of the National Rental Home Council, an industry advocacy group.
read more: NREI
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