Five interesting things that Hodges Capital research analysts discovered this week...
#1 CU SUPPLY: According to the International Energy Agency, with the world copper market estimated at $183B, existing mines and projects under construction are only expected to meet 80% of copper needs by 2030. The potential metal shortage could impact the growth of electrical infrastructure investments, green energy, E.V. adoption, and A.I. data centers.
#2 GROWTH EXPECTATIONS: With the 2Q24 earnings season largely behind us, topline growth for the S&P500 was north of 5% in the recent quarter. However, revenue growth expectations for 3Q24 have come down meaningfully from 7.3% to 4.4% in just the past six weeks, according to Strategas. Energy remains the weakest, with an expected 3Q24 year-over-year decline of -14.4%.
#3 EGG PRICES: The impact of the highly pathogenic avian bird flu has increased egg prices as producers shrink their laying flocks. Although egg prices had moderated in the spring, prices in July spiked 19.1%, according to CPI data.
#4 CONSUMER CREDIT: A combination of above-average credit balances and +20% interest rates have moderated consumer credit card balances, which have come down two out of the past three months. Piper Sandler forecasts that delinquencies will continue to rise due to a softer labor market and cooling wage gains.
#5 WEST COAST PORT DATA: Goldman Sachs reported this week that the “Big Three” west coast ports (L.A., Long Beach, and Oakland) saw above trends in July of +20% year-over-year growth compared to the five-year average of +1%.
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