The Wednesday Roundup: July 10, 2024

The biggest movers over the last week on price and volume (Mid Cap S&P 400 and Small Cap S&P 600)

Price and volume moves last week for every stock and sector (Mid Cap S&P 400 and Small Cap S&P 600)

Last week vs. history (Mid Cap S&P 400 and Small Cap S&P 600)

AI Oracle Commentary (Alpha testing)

Key News Highlights:

• Economic Contraction: Both the ISM manufacturing and services PMI indexes fell below 50 in June, signaling contraction in these critical sectors.
• Labor Market Softening: The U.S. labor market shows early signs of cooling, with job openings and quits rates declining and the unemployment rate ticking up to 4.1%.
• Inflation Easing: Leading indicators such as the ISM prices paid indexes and wage growth figures suggest that inflationary pressures may be moderating.

Historical Comparison:

Comparing these market headlines to the economic landscape of December 2000, we see some parallels. In December 2000, the U.S. economy was also experiencing a slowdown as the dot-com bubble began to burst. The ISM manufacturing index had dipped below 50, indicating contraction, and the labor market was showing signs of weakening, with rising unemployment rates. Additionally, inflation was relatively subdued, allowing the Federal Reserve to consider rate cuts to support economic growth. Both periods highlight the delicate balance the Fed must maintain between fostering economic growth and controlling inflation.

Stock Study for Tuesday

Goosehead Insurance, Inc. (GSHD)

Goosehead Insurance, Inc. (GSHD) is an independent insurance agency experiencing rapid growth in the U.S., driven by a unique business model and innovative technology platform. The company partners with over 150 carriers to offer a wide range of insurance products, supported by knowledgeable sales and service agents and proprietary technology, resulting in an impressive 86% client retention rate. Their Digital Agent platform enhances the customer journey by providing specific home and auto insurance quotes and enabling quick policy binding. This platform also improves agent productivity and retention by handling policy fulfillment and servicing, adding significant value to carriers through simplified, profitable distribution. As a result, total written premiums increased by 34% to $3.0 billion in 2023.