Stocks are mostly lower this morning as investors comb through more retail earnings while awaiting the Federal Reserve’s latest minutes to see whether it might wind down bond purchases. If that happens, keep an eye out for the bond market because it will break down. So to help you maneuver this potential news, I’ve identified two sizzling REITs on my radar right now — and more in Wednesday’s stock market recap.
Stock Market Recap
In Wednesday’s stock market recap, global stocks are mostly lower as investors await minutes from July’s Fed meeting and an update on whether it’ll reduce economic stimulus or not. The central bank will also look at raising interest rates.
Wednesday’s other big report is housing starts and permits…
The Department of Commerce said housing starts fell by 7% to an annual rate of 1.534 million in july. That comes just after a 3.5% jump to a revised rate of 1.650 million in June. However, it’s reported that building permits rose by 2.6% to an annual rate of 1.635 million in July.
But what most people don’t realize is this report will end up having a huge impact on the real estate and bond markets.
I mean, I’ve been telling anyone who’d listen to me that the iShares 20+ Year Treasury Bond (Nasdaq: TLT) is going to crack down. I see it hitting its 200-day moving average because whether we like it or not, the Fed isn’t going to support bond-buying with the market being at all-time highs for the past year or so.
So like I said before, let’s make sure we keep a close watch on the bond market moving forward…
Roger’s Radar: 2 REITS Every Investors Needs to Trade Now
The first REIT on my radar is AvalonBay Communities Inc. (NYSE: AVB). The company has a long-term track record of acquiring, developing and managing distinctive apartment homes in the U.S.
AVB has its stuff together, so I see the stock easily bouncing to the upside to $240 per share in the next few weeks.
The second REIT on my list also invests in apartment buildings. But what I like the most about it is that it’s breaking above its 50-day moving average.
In Wednesday’s video, you’ll learn about the biggest report to watch for today… which sector will rise if the Fed raises rates… why this data is crucial… which sectors to avoid… and two REITs investors need to own now.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.