Five interesting things that Hodges Capital research analysts discovered this week...
#1 ROAD WORK AHEAD: The Dodge Momentum index, a leading indicator of non-residential construction spending, was up in July by 8% sequentially and 14% compared to a year ago. The recent reading represents a post-pandemic high primarily driven by public works.
#2 RAIL VOLUME: Through the end of last week, AAR data indicated that North American rail volumes year-to-date were up 2.4% (U.S. +2.7%, Canada +1.2%, Mexico +3.7%). Eight of the eleven major traffic categories posted y/y increases last week, the most significant growth coming from intermodal.
#3 BUILDER CONFIDENCE: As the market waits for rate cuts, builder confidence in newly built single-family homes remained muted in August, down two points from July, according to the National Association of Home Builders (NAHB)/ Wells Fargo Housing Market Index.
#4 LAST CALL: More Americans now believe even moderate alcohol consumption is unhealthy. A recent Gallup survey indicated that 45% of U.S. adults think having one or two alcoholic drinks per day is bad for one’s health, compared to 28% in 2018. The rise in negativity toward alcohol consumption was primarily due to the views among younger adults.
#5 CFO TURNOVER: According to Russell Reyolds data, turnover among CFOs (Chief Financial Officers) of S&P 500 companies increased in the first half of 2024 to 7.8% compared to 6% a year ago. Moreover, the average global tenure for CFOs has reached a five-year low this year at 5.7 years.
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