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Hodges Friday Fast Five

"In the investment business, you go to school every day, but never graduate." - Don Hodges

 

Friday Fast Five - 6/16/2023

by Hodges Investment Team, on June 23, 2023

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

#1 FACTORY CONSTRUCTION: New data from the Census Bureau shows that U. S. construction spending has more than doubled from a year ago, reaching $190 billion in April compared to $90 billion in June of 2022. Although construction spending has dropped year-over-year across office and healthcare, demand for domestic manufacturing is gaining momentum due to the production of electric vehicles and solar panels.  

#2 PRODUCTIVITY: A recent report from Barron’s showed a 2.1% fall in U.S. labor productivity from the fourth quarter of 2022 to the first quarter of 2023. The sequential decline marks the fifth straight quarter of negative productivity growth and the worst trend since 1948.    

#3 GOT EARNINGS? According to analysis from Stategas, more than 40% of the companies in the Russell 2000 have not earned a profit in the last 12 months.                          

#4 OPTIMISTIC AUTO DEALERS: Cox Automotive’s most recent quarterly index survey indicated that U.S. auto dealers remain optimistic about the market despite higher financing costs and economic uncertainty. The index increased sequentially by two points to 56, with any score above 50 suggesting forward optimism.

#5 CONSUMER DEBT: According to the Federal Reserve Bank of New York, consumers now owe a record $988 billion on their credit cards, up 17% from a year earlier, or about $5,700 per person.

 

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This discussion is not intended to be a forecast of future events and should not be considered a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk. Principal loss is possible. Investing in smaller companies involves additional risks such as limited liquidity and greater volatility. No current or prospective client should assume that information referenced in this communication is a recommendation to buy or sell any security or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.

All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.

Hodges Friday Fast Five

We aim to help investors separate the news from the noise by providing our perspective. Every Friday the Hodges Capital research analysts list the five most interesting things they discovered that week. Subscribe to receive the Hodges Friday Fast Five in your inbox every Friday. 

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