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

#1 HALF TRILLION: The U.S. government’s budget deficit was just under $510 billion at the end of December, an increase of 52% from a year ago, pushing total governmental debt to approximately $34 trillion for the first time.

#2 FLYING SOUTH: According to the U.S. Census Bureau, for the twelve months ending in June of 2023, southern states accounted for 87% of the total population growth in the U.S. The states with the highest growth rates were South Carolina, which increased by 1.7%, followed by Florida and Texas, which grew by 1.6%. Hedgeye points out that eight States saw their populations shrink, with New York and Illinois suffering the most significant losses.

#3 SHIPPING TRAFFIC: Given the geopolitical concerns in the Red Sea, CNBC reported this week that 90% of container ship traffic bound for the Suez Canal was being temporarily rerouted. Such activity pressures increase shipping rates and vessel demand as voyages lengthen.  

#4 RATE CUTS? An article published by Investment News points out that this week’s market for interest rate swaps is signaling about a 70% chance of a quarter-point rate cut at the Fed’s March meeting. That is down from an 80% change seen at the end of last week.  

#5 STEEL DEMAND: A recent survey conducted at KeyBanc was published this week that demonstrated solid demand for sheet steel. The survey suggested that demand remained flat in the final quarter of 2023 versus a typical seasonal decline of 2%.  

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