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

#1 REVENGE TRAVEL: Despite inflation and higher fuel prices, post-pandemic vacation travel is booming, with 80% of Americans planning to travel this summer and 50% planning to fly, according to the U.S. Travel Association. In addition, roughly 42% of travelers plan to travel more than last summer, with travel spending up 3% over 2019.        

#2 RATE EXPECTATIONS: According to data provided by Strategas, 0 out of 52 Wall Street economists/strategists have a forecast for the 10-year Treasury yield of 4.00% or higher, and just 6 have a forecast above 3.5%. As a result, anything above this level could provide a shock to Wall Street pundits.

#3 NONRESIDENTIAL BUILDING: The Dodge Momentum Index, a leading indicator for nonresidential construction projects, jumped 7% sequentially in May and was 17% above the same period a year ago. We believe it is typical that commercial and institutional construction lags behind residential construction by 12-24 months in most cycles. 

#4 ITALIAN BABY-BOOST: Reuters recently reported that many Italian businesses are taking measures into their own hands to address the nation's low birthrate by offering to fund childcare and build new schools. Currently, Italy has one of the lowest birth rates in the world, which could create economic challenges in the future.   

#5 FATHER’S DAY BOX OFFICE BOOM: According to Box Office Mojo, movie theaters raked in $164MM over Father's Day weekend, which was more than the same weekend in 2019 and almost fourfold a year ago. The success was primarily driven by the movies Top Gun: Maverick, Lightyear, and Jurassic World: Dominion.

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