Business Report: What's going on with Wall Street?

The Dow, the S&P 500 and the Nasdaq are all down more than 2%, after smaller overnight declines of the Nikkei and London's Footsie index. These indices are not Gallup polls – they are merely the sum total of movement by chosen stocks, each moving up or down for its own reasons. So, what are those reasons? Three things. The first was a Chinese economic report suggesting some further economic slowing there. The second was a similar slowdown signal in the German economy. The third and most important is that exodus of stock investors shifting money into the bond market. Money doesn't grow much there but it's typically safer. When you hear people talking about a credit yield inversion, that's just a technical way of talking about this. We've mentioned before that computer trading programs tend to exaggerate up- and downtrends, and so this morning the Dow has given back all its gains from yesterday and the some. Banks are taking big hits – Bank of America down 4%, Citigroup down 5%. But Macy's shares are down 16%, a combination of slowdown fears plus its other issues.

Business Report: What's going on with Wall Street?