Level 1 - Absolute Beginner
Stocks fell in the United States on Friday. The Dow dropped more than 650 points. That is a drop of 1.23 percent.
The S&P 500 also went down. It fell a little, about half of one percent. The Nasdaq fell a very small amount.
Oil is one reason. The price of American oil went above 100 dollars. People are worried about Iran.
On Thursday, tech stocks fell a lot. Many people are still nervous. They wait to see what happens next week.
- stock
- A small piece of a company that you can buy.
- Dow
- A list of 30 big American companies.
- drop
- To go down.
- percent
- A part of one hundred.
- oil
- A liquid used for fuel.
- worried
- Feeling that something bad may happen.
- tech
- Short word for technology.
- nervous
- A little afraid.
Level 2 - Elementary
Wall Street ended the week with a sharp fall. On Friday the Dow Jones Industrial Average lost 652.82 points, or 1.23 percent, and closed at 52,215.16.
The broader S&P 500 slipped 0.52 percent to 7,623.68. The Nasdaq Composite dipped 0.21 percent to 25,955.34, a smaller move after the large tech selloff on Thursday.
Investors pointed to two worries. American oil rose above 100 dollars a barrel, and fears grew that the conflict between the United States and Iran could flare up again.
Earnings news was mixed. American Express reported profit of 4.68 dollars a share, while the car parts maker Gentex missed forecasts and lowered its outlook.
- close
- To end the trading day at a price.
- broader
- Covering more companies or things.
- investor
- A person who puts money into stocks or other assets.
- flare up
- To start again suddenly.
- earnings
- The profit a company makes.
- forecast
- A guess about what will happen.
- outlook
- What a company expects for the future.
- selloff
- A time when many people sell stocks quickly.
Level 3 - Intermediate
Wall Street closed a turbulent week on a weak note on Friday. The Dow Jones Industrial Average gave up 652.82 points, or 1.23 percent, to finish at 52,215.16, while the S&P 500 eased 0.52 percent to 7,623.68 and the Nasdaq Composite lost 0.21 percent to settle at 25,955.34.
The pattern was unusual. After a heavy technology selloff on Thursday, the damage on Friday fell mainly on the Dow, whose industrial and financial members were pulled down by a different worry: energy prices.
American crude climbed above 100 dollars a barrel as traders feared that the standoff between Washington and Tehran could escalate again. Higher fuel costs squeeze companies and consumers alike, and they complicate the path for interest rates.
Company news offered little relief. American Express posted earnings of 4.68 dollars a share, but Gentex missed expectations and cut its guidance, a reminder that costs are a worry for businesses far from the oil industry.
- turbulent
- Full of sudden changes and unrest.
- settle
- To end a trading session at a certain level.
- escalate
- To become more serious or intense.
- squeeze
- To put financial pressure on.
- standoff
- A situation where neither side will give way.
- guidance
- A company's own forecast of future results.
- eased
- Fell slightly.
- benchmark
- A standard used for comparison.
Level 4 - Advanced
Wall Street ended a turbulent week on a sour note on Friday as the Dow Jones Industrial Average surrendered 652.82 points, or 1.23 percent, to close at 52,215.16. The S&P 500 receded 0.52 percent to 7,623.68, and the Nasdaq Composite shed a comparatively modest 0.21 percent to 25,955.34.
The distribution of losses was telling. Thursday's technology rout had already flushed out much of the froth from growth names, so on Friday the pressure migrated to the Dow's industrial and financial constituents, which are more exposed to the cost of energy and to the trajectory of borrowing costs.
The proximate trigger was oil. American crude pushed past 100 dollars a barrel on renewed apprehension that the confrontation between Washington and Tehran could reignite. Elevated fuel prices act as a tax on consumers and a drag on margins, and they complicate the central bank's task of taming inflation without choking growth.
Corporate disclosures supplied scant consolation. American Express reported earnings of 4.68 dollars a share, but Gentex missed forecasts and lowered its guidance, illustrating that cost pressure is hardly confined to energy producers and their customers.
- surrendered
- Gave up.
- receded
- Moved back or down.
- rout
- A sudden, heavy defeat or collapse.
- froth
- Excess enthusiasm, especially in prices.
- constituents
- The members that make up an index.
- proximate
- Closest in cause or time.
- apprehension
- Worry about what may happen.
- scant
- Very small in amount.
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