The seemingly endless supply of bad news for retailers was halted (at least temporarily) over the last 48 hours. Target released positive results on Wednesday, and Walmart did the same yesterday. Not that either report will do much to change perception in the near term for Macy’s, Sears, Dillards, and others, but it is good to know that someone can still make a buck selling through brick-and-mortar channels. (However, it wasn’t all candy and roses as recently released Bon-Ton and Ann Taylor numbers both disappointed).
US stocks rebounded modestly Thursday after Wednesday’s rout. The Dow added 56 points (0.27%) yesterday, while the S&P 500 moved up 0.37% and the Nasdaq jumped 0.73%. In what could be coined the “Mueller Move,” bank and tech stocks bounced back during Thursday’s session.
US Treasury yields moved up slightly with the yield on the 10-year adding one basis point to 2.23%
CMBX spreads narrowed after Wednesday’s spike. CMBX 6/7/8/9/10 AAA spreads tightened one or two basis points, while CMBX 6/7/8/9/10 BBB- spreads inched in two to six basis points.
The CMBS cash market was quiet as only about $50 million was out for bid yesterday. Cash spreads were flat at the top of the stack and marginally tighter down the credit curve. A list of 2015-2016 single-A conduit bonds – “class C’s” – traded in the neighborhood of S+200.