Five interesting things that Hodges Capital research analysts discovered this week...
#1 Hot Summer IPOs: Historically, the summer months mark a low point in new issue activity. Not so this year. Companies such as Bullish, Figma, and Circle have decided to move forward with their offerings, and investor reception has been overwhelmingly positive—each stock soared on its inaugural trading day. Experts suggest that the passing of the Genius Act has bolstered the credibility of these crypto-adjacent IPOs. Time will tell if their success inspires other companies to take the public leap. (MarketWatch)
#2 PPI Shakes the Fed: New data from the lesser-followed Producer Price Index indicates that inflation remains strong in the U.S. While not as widely cited as the Consumer Price Index (CPI), the hot PPI report—showing a 3.3% rise in producer prices over the last 12 months—illustrates that tariffs may just be starting to affect corporate inventory purchases. (Barron’s)
#3 Palantir Profiting: Palantir’s recent Q2 earnings release reported revenue exceeding $1 billion—nearly four times its Q2 2020 revenue. Growing belief in AI’s pivotal role in both corporate operations and federal defense has driven Palantir’s value and profits sharply higher. (The Economist)
#4 Reigniting Fission: This week, the DOE selected multiple companies to participate in a program aimed at building new nuclear reactor models at U.S. laboratories by mid-2026. The selected companies claim to have designs that differ from the traditional water-cooled reactors of the past, promising more efficient and cost-effective construction. The current administration has also contributed to the nuclear push—President Trump reduced regulatory burdens by removing the requirement for Nuclear Regulatory Commission approval if the DOE or DOD have already granted approval. (Barron’s)
#5 30-Year Hits Low: As conviction grows that the Fed will cut rates at its upcoming meeting, mortgage rates have fallen to their lowest levels since October 2024. This week, the average 30-year fixed mortgage rate dropped to 6.58%, while the 15-year fixed rate fell to 5.71%. As previously noted in the Friday Five, this extended period of elevated mortgage rates has kept many buyers on the sidelines and dampened owners’ desire to refinance. (Freddie Mac)
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