Five interesting things that Hodges Capital research analysts discovered this week...
#1 MORTGAGE APPS: Mortgage application volume rose 6.9% last week, according to the Mortgage Bankers Association’s Index, the highest seasonally adjusted level since January. Moreover, contract rates for a 30-year conforming mortgage declined to 6.55% from 6.82%.
#2 TEXAS WATER: The State of Texas recently announced plans to invest more than $3.0B in water and wastewater projects throughout the state. The projects are funded through the Texas Water Development Board’s Clean Water State Revolving Fund.
#3 TRUCK ORDERS: ACT Research released data showing preliminary class 8 truck orders declined 13% year-over-year in July. Orders moderated for the second consecutive month as carriers deal with a weak freight environment and economic uncertainty.
#4 MARKET VOLATILITY & ELECTION DAY: A study published by Strategas has shown that market volatility, as measured by the VIX, correlates with the outcome of the last eight presidential elections. Strategas found that the incumbent party won when the VIX peaked in July or August and lost when the VIX peaked within a month of Election Day.
#5 AI MILLIONAIRES: A report from Valens Research this week indicated that market mania surrounding artificial intelligence (AI) had created 500,000 new millionaires (587 per day) since the launch of ChatGPT in late 2022.
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