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JPM Morgan (JPM) reported Q3 earnings recently, and they were better than expected. But apparently they weren’t better-than-expected-enough, because the stock lost 2.64% on the announcement.

I’d say that might have made Bank of America (BAC), which released its results shortly after, a bit nervous. But, at least as of this writing, the markets were all experiencing a decent little bump. So, who knows? Maybe investors will stay in a more giving mood.

What’s most definitely not so generous is energy prices. We recently discussed the rise is gasoline costs, but the Energy Information Administration is warning about other resources too. Heating oil, for one, is projected to rise about 43% over last year. And propane? That could surge 54%.

Natural gas, for its part, is expected to increase 30% and electricity by 6%. If that’s all correct, let’s hope and pray the weather experts are wrong about the cold winter season they say we’re in for.

Though even if that’s the case, it won’t save airlines. Delta (DAL) came out recently to warn that rising jet fuel prices are jeopardizing its recovery. If nothing changes, it expects to post a “modest loss” this quarter as fuel costs are up $0.40 from Q3.

And speaking of airlines, we’re now hearing a different story about why Southwest (LUV) experienced such scheduling turbulence. No longer are weather and air traffic controller issues the main culprit. Or at least the Southwest Airlines Pilots Association is no longer letting corporate do all the talking.

That organization’s official stance is that the company has overextended its pilots’ physical and psychological abilities for months now. The dam simply broke over the weekend, it says, with no guarantee against similar disruptions going forward.

Rental Rates Are on the Rise

Next up, let’s turn to Thursday’s Morning Brief, which says:

"First, the (sort-of) good news: September’s consumer price index (CPI) was relatively stable, with the headline rate only marginally higher than expectations at 5.4% year-over-year. Core prices, which strip out the more volatile components like food and energy, also held steady at an annualized 4.0%, and some elements like clothing, airline fares, and used cars tumbled from historically high levels.

"The bad news, of course, is that inflation is still running well above trend (and that’s even before we start factoring in… very hot energy prices). Inflation expectations are spiraling higher, and the Federal Reserve’s favored buzzword “transitory” is becoming a bit of a meme among economy watchers.

"And now for the worse news: Not only is there no immediate relief in sight, but some of those component declines may not last long."

It also mentions rising apartment rent, which we all should have seen coming for so many reasons – including how landlords have to deal with inflation, too.

The World According to REITs

As you can see below, Power REIT (PW) was right back to its buoyant self despite all the news. And if the markets continue their strong start, I don’t see any reason why it won’t go on to gain back more.

(Source: The Daily REITBeat)

Elsewhere in REIT-dom, we find that:

1. Terreno Realty (TRNO) sold a three-building industrial property in East Hanover, New Jersey, for $32.7 million. The set of facilities amount to about 167,000 square feet of space set on 11.7 acres, and are 88.2% leased to 32 tenants.
2. Easterly Government Properties (DEA) formed a joint venture with a leading global investor in order to acquire a 1.21 million+ square-foot portfolio of 10 properties through 2023. These assets are 100% occupied by the Department of Veteran Affairs, and will be sold for $635.6 million, complete with mostly 20-year leases. DEA will hold a 53% stake in the completed project.
3. Empire State Realty Trust (ESRT) says that iCapital Network has agreed to rent an additional 35,186 square feet of space at One Grand Central Place – more than doubling its original leased area – and add an extra six years to its previous 11-year term. The tenant will now occupy 64,537 square feet across three full floors.