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

#1 AMERICAN PRIDE: An annual GALLUP poll indicated that American Pride is near an all-time low, with only two out of five Americans (41%) saying they are extremely proud to be Americans. This was the fifth consecutive year that this reading has been weak compared to the period from 2001 through 2017 when no fewer than 75% of U.S. adults said they were extremely proud.

#2 USED CAR PRICES RUN OUT OF GAS: The latest Manheim index shows a decline in wholesale used vehicle prices year-over-year by 8.9% in June. Although used vehicle prices have declined over the past year due to higher financing costs, they remain roughly 30% above pre-pandemic levels.  

#3 BIG RIGS: ACT Research recently released June Class 8 truck orders of 14,800 net units, representing a 12% decline year-over-year. Due to economic uncertainty surrounding the U.S. freight environment, the backlog for new truck orders declined in June, reflecting a sluggish demand for new trucks.    

#4 MORTGAGE DEMAND: According to the MBA application indices, the volume of single-family mortgage applications declined 7% year-over-year in the second quarter of 2024, mainly driven by a 13% decline in home purchase activity.

#5 JUNE SLOW DOWN: In June, the ISM Manufacturing and Services indices fell below 49 for the first time since 2020. A reading below 50 suggests a contraction in business activity.  

 HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.

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.