Question
SUMMARY: A decline in U.S. retail sales and lackluster results from two of the nation's largest banks on Wednesday rocked confidence in the vigor of
SUMMARY:A decline in U.S. retail sales and lackluster results from two of the nation's largest banks on Wednesday rocked confidence in the vigor of the U.S. economy, prompting investors and traders to sell stocks and move money into government bonds, driving yields on long-term Treasury bonds to record lows. On Wednesday, the Dow industrials posted their fourth decline in a row, slumping 186.59 points, or 1.1%, to 17427.09, led by a 3.5% fall for J.P. Morgan Chase & Co., the largest U.S. lender by assets, and smaller drops in other financial shares.
QUESTIONS: 1. How much did the Dow industrials fall on Wednesday? How many days in a row has the Dow fallen? 2. Why would a decline in U.S. retail sales and lackluster results from two of the nation's largest banks prompt investors and traders to sell stocks and move money into government bonds? 3. The Wall Street Journal reports that yields on two-year government bonds issued by eight European nations and Japan were negative on Wednesday, indicating buyers' willingness to pay governments to hold their money. Why would anyone ever buy a bond that is guaranteed to lose money? 4. Why would copper be viewed as a bellwether for the global economy? Why did the price of copper fall after the World Bank cut its outlook for global growth in 2015 rather than before the announcement?
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