(KRON) – On today’s Winners & Losers, KRON4 financial expert Rob Black says a new month doesn’t necessarily mean a healthier stock market, gas prices are continuing to rise as experts predict a “cruel summer,” and Americans are running up credit card debt even as interest rates go up.
Loser: Stocks fall to start June
Stocks pulled back amid worries about the health of the economy, as Wall Street turned the page to another month following a volatile May.
Weighing on investor sentiment, JPMorgan CEO Jamie Dimon on Wednesday said the economy is headed for a “hurricane.”
Yellen says the administration is fighting inflation, admitting she was wrong that it was “transitory.”
Netflix’s password crackdown is already a hot mess. While the company has been trialing the new policy in Costa Rica, Chile, and Peru, users told Rest of World they hadn’t seen any enforcement, and the policy was confusing.
Mortgage demand fell to the lowest level since the end of 2018, even as interest rates ease a bit.
Delta hikes sales forecast to pre-pandemic levels thanks to a jump in travel demand and fares.
Elon Musk told Tesla workers to return to the office full-time or resign. He reportedly said “pretend to work somewhere else.”
Loser: Gas prices continue to rise to ‘cruel summer’ record high
Expect a “cruel summer” ahead, with more pain at the pump than ever.
Crude oil prices jumped to a more than two month high after the European Union approved a plan to ban most Russian oil imports for its invasion of Ukraine.
China showed signs of easing its COVID-19 lockdowns — meaning even less oil will be available on the world market.
Oil makes up more than half the price of gasoline.
Consumers should prepare for a “cruel summer,” with gas inventories at the lowest seasonal levels since 2019 as the summer driving season heats up.
The national average for regular unleaded could climb to $6.20 per gallon by Labor Day.
Tuesday’s national average was $4.62, which is 45 cents more than a month ago and $1.58 more than a year ago. 67% of drivers recently surveyed would change their driving habits if gas hit $4.50 a gallon. That number rises to 75% at $5 a gallon.
Of note, high gas prices pummeling school district’s budgets. Could the record highs at the pump begin to affect your children’s education?
Loser: Americans running up credit card debt
Consumer borrowing is surging as inflation hovers near 40-year highs and Americans resume pre-pandemic activities like traveling and dining out, posing risks for lower-income borrowers.
A lot of Americans have started using credit cards for everything.
Total household debt is still historically low, but debt payments have edged up recently to 9.3% of personal disposable income in the fourth quarter. By comparison, debt payments comprised 13.2% in 2007, prior to the Great Recession
In March, total consumer credit leaped by a whopping $52 billion.
In April, bank credit-card balances rose 14.2% from a year earlier, auto loans increased 7.5% and other consumer loans climbed 19%. Revolving credit, which is mostly credit card balances, rose by $31 billion, or about 3%.
Non-revolving credit, which includes student and auto loan balances, increased by $21 billion.
About 11% of subprime borrowers were delinquent on credit card payments in March.