Gas prices drop to nearly $4 per gallon - August 4, 2022

High costs for transporting goods overseas and general supply chain woes are expected to continue longer than anticipated as shipping giant Maersk raised its 2022 profit guidance for a second time. The company beat its quarterly expectations but reduced its expectations for global container volume growth for the year. The company, considered by some to be a barometer for global trade, said it expects trade to gradually normalize in the fourth quarter but COVID-19 lockdowns and the invasion of Ukraine have worsened stockpile buildups and congested shipping routes amid weak demand for a number of products. Applications for mortgages in the U.S. saw a surge last week with mortgage demand increasing 1.2%. The rate for a 30-year fixed mortgage reached its biggest weekly decline since 2020, although activity in the sector is still relatively low. While the dip in rates caused a small increase in mortgage activity, experts warned that home prices have not been falling, although some observers said low mortgage rates and an increase in inventory could invite a rebound in purchases. Walmart laid off more than 100 corporate employees as part of a restructuring effort instituted after the company reduced its profit forecast last week. The U.S.’s largest employer said its restructuring measures will also create new roles as the company tries to adjust to the changing habits of shoppers. The layoffs followed similar announcements from companies such as Shopify and Robinhood, with the latter succumbing to pressure from both falling revenues and fines issued by government authorities. Observers said the surge in layoffs could signal an overall slowdown in the job market. The average price of U.S. gas fell to almost $4 per gallon after a steady decline in prices over 50 days. Industry analysts attributed the dip to reduced oil prices, recession fears and a reduction in driving after gas prices hit an average of $5 per gallon. The drop in price has been welcomed by many Americans and President Joe Biden’s administration noted