Core Viewpoint - The real estate investment trust (REIT) sector is experiencing a downturn in 2025, but there is potential for recovery in 2026 as interest rates are expected to decline, which could enhance REIT valuations and make them attractive investments [1][13]. Group 1: Current Performance and Challenges - The S&P U.S. REIT Index has declined by nearly 5% year-to-date in 2025, continuing a trend of lackluster performance in recent years [1]. - Higher interest rates negatively impact property values and increase borrowing costs, making REITs less attractive compared to fixed-income securities [3][6]. - The correlation between interest rates and REIT returns shows that REIT share prices rose sharply in 2021 when rates were near zero, but declined in 2022 and remained low through much of 2024 as rates surged [6][4]. Group 2: Future Outlook for Interest Rates - The Federal Reserve has recently lowered its target rate by 0.25% to a range of 3.5%-3.75%, with expectations for further cuts in the coming year [6][7]. - Investors anticipate at least two more rate cuts, and there is political pressure for rates to drop below 1% next year, which could lead to a new Fed Chair more amenable to additional cuts [7]. Group 3: Potential Beneficiaries of Lower Rates - REITs with higher-yielding dividends are expected to benefit the most from falling interest rates, potentially leading to higher total returns for investors [8]. - The average dividend yield across the REIT sector is around 4%, while many net lease REITs have yields above 5.5%, indicating a strong position for these investments [9]. - VICI Properties, a REIT focused on casinos, currently yields 6.3% and has a strong growth rate in dividends, positioning it well for expansion if rates decline [10]. - Realty Income, yielding 5.6%, has diversified its investments and continues to increase its dividends, which could accelerate with lower rates [12]. Group 4: Investment Considerations for 2026 - REITs have historically been strong long-term investments, and a significant reduction in interest rates could revitalize the sector, particularly for those with higher yields like VICI Properties and Realty Income [13].

>> WELCOME BACK. OUR NEXT GUEST ISSUED A DISSENTING VOTE AT LAST WEEK'S BIG FED MEETING, PUSHING FOR EVEN STEEPER RATE CUTS. JOINING US HERE AT POST NINE IN A CNBC EXCLUSIVE IS FEDERAL RESERVE GOVERNOR STEPHEN MYRON.GOVERNOR, IT'S GREAT TO HAVE YOU BACK AT POST NINE. WELCOME. >> GOOD DAY.THANKS FOR HAVING ME BACK. >> SO I KNOW YOU JUST GAVE THIS BIG SPEECH AT COLUMBIA ABOUT INFLATION. AND BEFORE WE DIVE INTO THAT, MAYBE YOU COULD JUST EXPLAIN WHY YOU DISSENTED FOR EVEN SHARPER RATE CUTS WHEN SOME OF YOUR CO ...

The major U.S. index futures are currently pointing to a higher open on Monday, with stocks likely to regain ground following the significant weakness seen last Friday.Traders may look to pick up stocks at somewhat reduced levels after last Friday's pullback, which was led by a sell-off among tech stocks.Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of some key U.S. economic data in the coming days.The monthly jobs report for November along with a report on ...

Core Viewpoint - RH, formerly known as Restoration Hardware, has faced significant challenges and volatility in its stock performance due to economic conditions, interest rate changes, and aggressive expansion plans by CEO Gary Freeman [1][2][4][5]. Company Performance - The company reported a revenue increase of 9% year-over-year, although earnings fell by 31% compared to the previous year, which was below market expectations [9][10]. - Free cash flow improved significantly to $83 million from a negative $96 million the previous year, indicating a healthier cash position [10]. - For the current quarter, RH expects revenue growth of 7-8%, which is below the 10% anticipated by Wall Street [11]. Market Conditions - The housing market remains weak, described as the worst in nearly 50 years, impacting consumer sentiment and demand for high-end home goods [12][15]. - The company has been affected by higher tariff expenses and increased construction costs since the pandemic, which have pressured profit margins [13][15]. Strategic Outlook - CEO Gary Freeman remains optimistic about RH's market position, claiming the company is gaining market share despite challenging conditions [12]. - The company is pursuing an aggressive expansion strategy, including a notable new location in Paris, which Freeman believes will enhance RH's brand presence [14][16]. - Analysts express mixed views on RH's long-term prospects, with some downgrading the stock due to concerns over valuation and market conditions [17][18]. Investment Considerations - RH is viewed as a high-risk, high-reward investment, heavily reliant on a potential recovery in the housing market and favorable interest rate conditions [19][20]. - The stock has shown volatility, with significant price movements following earnings reports and market sentiment shifts [8][17].

Inflation Trends - The inflation rate has remained above the 2% target for four and a half years, with recent data indicating a 3% inflation rate for services in the first half of the year and 3.5% in the last three months before a significant event [1][2] - Concerns have been raised about persistent inflation, which is not primarily driven by tariffs, indicating a potential long-term issue [2] Economic Outlook - The company believes that if the current uncertainties are resolved, interest rates could decrease significantly from their current levels, but caution is advised due to ongoing inflation above target levels [3] - There is a sentiment that waiting for more data before making decisions would be prudent, especially with the expectation of receiving substantial information in Q1 of 2026 [4][6] Labor Market Analysis - The labor market shows signs of stability, with low layoff rates and a rising job openings rate, which are characteristics of a strong job market rather than a recession [7][8] - Despite some cooling in the hiring rate, the overall job market indicators suggest that it is not in a state of decline, providing confidence in the economic outlook [7][8] Decision-Making Considerations - The company suggests that a more cautious approach to rate cuts is warranted until there is clear evidence that inflation is decreasing [9]

Market Performance - Major stock indices experienced a significant decline, with the Nasdaq dropping 398.69 points or 1.7 percent to 23,195.17 and the S&P 500 falling 73.59 points or 1.1 percent to 6,827.41 [1] - The Dow posted a more modest loss of 245.96 points or 0.5 percent to 48,458.05 after reaching a new record intraday high earlier in the session [2] - For the week, the Dow increased by 1.1 percent, while the S&P 500 decreased by 0.6 percent and the Nasdaq fell by 1.6 percent [2] Sector Performance - The tech sector was notably impacted, with Broadcom (AVGO) leading the decline, plunging more than 11 percent despite reporting better-than-expected fiscal fourth-quarter results [3] - Other tech stocks such as Micron Technology (MU), Oracle (ORCL), Advanced Micro Devices (AMD), and Nvidia (NVDA) also saw significant declines, indicating a continued rotation out of tech stocks [3] - The NYSE Arca Computer Hardware Index experienced a 5.2 percent drop, reflecting poor performance in computer hardware stocks [5] Economic Sentiment - Negative sentiment in the market was partly influenced by comments from Chicago Federal Reserve President Austan Goolsbee, who expressed concerns about prematurely cutting interest rates [4] - Goolsbee indicated that he preferred to wait for more data, particularly regarding inflation, before making further rate cuts [4] Other Markets - In overseas trading, stocks in the Asia-Pacific region saw notable gains, with Japan's Nikkei 225 Index rising by 1.4 percent and Hong Kong's Hang Seng Index increasing by 1.8 percent [6] - Conversely, major European markets experienced declines, with the French CAC 40 Index down by 0.2 percent, the German DAX Index down by 0.5 percent, and the U.K.'s FTSE 100 Index down by 0.6 percent [6] Bond Market - The bond market saw a pullback, with the yield on the benchmark ten-year note rising by 5.3 basis points to 4.194 percent [7]

Key delayed U.S. data on jobs and inflation will be closely watched as investors gauge how much further the Federal Reserve is likely to cut interest rates. ...

Market Performance - Major stock indices have mostly declined, with the Nasdaq dropping 396.53 points or 1.7 percent to 23,197.33, and the S&P 500 down 76.56 points or 1.1 percent at 6,824.44 [1] - The Dow Jones Industrial Average has seen a smaller loss of 189.50 points or 0.4 percent to 48,514.51 after reaching a new record intraday high [2] Sector Analysis - The tech sector has been particularly weak, led by Broadcom, which fell more than 10 percent despite reporting better-than-expected fiscal fourth-quarter results and positive guidance for the current quarter [2][3] - Other tech stocks such as Oracle, Micron Technology, and Advanced Micro Devices have also experienced significant declines, indicating a continued rotation out of tech stocks [3] Economic Commentary - Negative market sentiment may have been influenced by comments from Chicago Federal Reserve President Austan Goolsbee, who expressed concerns about prematurely cutting interest rates without sufficient data on inflation [4] Sector Performance - The NYSE Arca Computer Hardware Index has dropped by 4.9 percent, reflecting poor performance in computer hardware stocks [5] - Networking, semiconductor, and software stocks are also experiencing substantial weakness, contributing to the Nasdaq's decline [5] International Markets - In overseas trading, stocks in the Asia-Pacific region have generally moved higher, with Japan's Nikkei 225 Index up by 1.4 percent and Hong Kong's Hang Seng Index surging by 1.8 percent [5] - European markets have shown mixed results, with the French CAC 40 Index up by 0.4 percent, while the German DAX Index is near unchanged and the U.K.'s FTSE 100 Index down by 0.3 percent [6]

and Kevin Hanks at the CBOE the pre-bell playbook joining us now live from there. Good morning. So I was just saying how it was a record setting day.I mean intraday we saw the Dow hitting highs and you know stocks took off right after the Fed meeting on Wednesday and managed to clock in some wins. What are your thoughts this morning. Good morning Kevin. >> Good morning Nicole.You know, I think this is an interesting market to pay attention to because it seems to be the revenge of the 493. It's the equal wei ...

Right now, we want to get over to Steve Leeman. He is at the Chicago Fed Economic Outlook Symposium this week with bank president Austin Goulsby. Steve, take it away.>> Hey, good morning, Becky, and thank you. Just before I go, um I start here. Um Jeff Schmidt, the Kansas City Fed president, another dissenter out with a statement at this hour saying the reason he desented, inflation is too high, the economy showed continuing momentum, and the labor market he says is largely imbalanced.But we could talk abou ...