Five interesting things that Hodges Capital research analysts discovered this week...

#1 MAG 7: An article published this week by Apollo’s Daily Spark pointed out that the seven largest market cap stocks in the S&P 500, nicknamed the “Magnificent Seven,” have a market valuation four times the market capitalization of the Russel 2000.

#2 OCEAN FREIGHT RATES: Ocean freight rates have risen since tensions in the Red Sea developed in mid-November. Rates for a forty-foot international ocean container now cost roughly $4,050, up 213% from an average of $1,300 in mid-November, according to Freightos.

#3 MELATONIN: A recent survey published by JAMA Pediatrics indicates that nearly one in five adolescents between 10-13 years of age are taking melatonin to help sleep. A similar poll from 2017-2018 found that less than 2% used melatonin, a hormone produced in the brain that helps the body fall asleep.

#4 USED CAR PRICES: Used vehicle prices declined in 2023 and are expected to stabilize in 2024, according to Cox, which publishes wholesale prices on its Manheim Used Vehicle Index. Cox expects wholesale prices to be up in 2024 by 0.5%.

#5 EMPLOYMENT TRENDS: Last week, U.S. payrolls rose a solid +216,000 in December, revised downward by 71,000 from the prior months. The unemployment rate was 3.7%, but the under-employment rate rose 7.1%. Labor force participation fell sharply to 62.5% due to women exiting the workforce.

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