Five interesting things that Hodges Capital research analysts discovered this week...

#1 CAPITALISM IN TROUBLE: According to a recent Axios/Momentive survey of Americans 18-34 years old, 49% have a favorable view of capitalism, and 46% view it negatively. More specifically, for those younger adults between 18-24, only 42% have a positive view, and 54% have a negative view.
#2 EARNINGS EXPECTATIONS: The third-quarter earnings season is now underway. Factset data suggest that S&P 500 earnings are expected to be up 24.4% year-over-year, with 9 out of its 11 sectors expected to grow. Forward earnings guidance will likely see headwinds from higher commodity pieces, labor shortages, and increased transportation costs.

#3 FORECLOSURES: As government and private sector programs designed to help mitigate pandemic-related disruptions begin to expire, foreclosures are on the rise. CNBC reported that Mortgage lenders had started the foreclosure process on more than 25,000 properties in the recent quarter, a 67% year-over-year increase.

#4 NO VACANCY: The U.S. rent inflation was up by 0.5% in September from the previous month and appears to have momentum to the upside, according to Strategas. Higher rent has primarily been driven by a lack of new supply in 2021.

#5 CEO QUOTE: Mark Millett- Steel Dynamics, CEO & President, stated this week, “The pent-up demand is absolutely there…. in the automotive arena. And in my humble opinion, when the chip shortage relieves itself, all they're going to do is just ramp up and maximize the output for the next couple of years because there's that much demand.”

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