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

#1 THE BIG SCREEN: Although movie theaters have historically proven recession-resistant, box office sales have not fully recovered from the pandemic shutdowns. The rolling 52-week average box office sales are estimated at roughly half the levels experienced before the COVID-19 pandemic.

#2 RUSSIAN DEBT: Russia has until Wednesday, 5/04/2022, to pay $2.2 billion of foreign debt that was initially due to be paid to an American bank on 4/04/2022. If Russia cannot repay the debt in US dollars as required, the default on the foreign debt would be Russia's first since 1917 or 105 years ago (source: AP).

#3 USED AUTO DEMAND: A proprietary survey of domestic auto dealerships completed by J.P. Morgan/Chase revealed that unfavorable macro factors have weighed on consumer demand. Half of the respondents in the survey noted that they had not seen the typical lift in demand for used vehicles this year.  

#4 PEDAL TO THE METAL: As the electric vehicle (EV) transition increases demand for battery technology, the United States has put plans to boost its production of crucial battery metals. Under the Defense Production Act, lithium, nickel, and cobalt have been added to the list of items considered critical for the country's national defense.   

#5 LARRY SUMMERS, FORMER TREASURY SECRETARY: "If you look at history, there has never been a moment when inflation was above 4%, and unemployment was below 5% when we did not have a recession within the next two years."

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