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.
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