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

#1 U.S. INFRASTRUCTURE: According to ARTBA’s February U.S. Transportation Construction Report, contract awards for infrastructure projects (highways, bridges, and airports) increased year-over-year by 6.6%. As we enter the fourth year of the five-year IIJA highway funding period, it is estimated that approximately 54% of projects have been funded, while only 33% of allocated funds have been spent. This imbalance suggests the potential for a surge in activity over the next 21 months.

#2 MORTGAGE DEMAND: CNBC recently highlighted three key takeaways regarding current home mortgage demand. First, mortgage applications rose by 1% for the week and were 7% higher than the same period last year, reaching their highest level in two months. Second, applications to refinance a home loan declined by 5% from the previous week, marking their lowest level in a month. Lastly, the average rate on a 30-year fixed mortgage dipped by 0.01%, settling at 6.71%.

#3 SOURING SENTIMENT: The Conference Board’s one-year expectation for stock prices recently experienced its steepest decline since 1987, plummeting from 57.2% a few months ago to just 37.4%. Such a dramatic shift in investor sentiment is often viewed as a contrarian indicator, potentially signaling a bullish market move ahead.

#4 GENERATION HOPELESS: Young Americans are among the most stressed and distrustful youth in the developed world. A striking two-thirds report having no trust in the government, according to a Financial Times survey.

#5 TUNED IN: According to a Pew Research article, the second Trump administration has issued a wave of executive orders and policy changes, drawing significant public attention. Roughly seven in ten Americans are following news about the administration closely—a level similar to the 2020 election and slightly higher than during the early days of the Biden administration. Both Republicans and Democrats are engaged at comparable rates, though Republicans tend to follow the news consistently, while Democrats report fluctuating levels of attention. Additionally, 40% of Americans say they are following political news more closely than before Trump took office.

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