Stocks sink as skepticism rises over quick economic recovery
Associated Press
NEW YORK — Investors are looking at the economy more skeptically.
Stocks retreated more than 2 percent yesterday and bond prices rose after two reports suggested the economy is not bouncing back as quickly as investors hoped.
The Commerce Department said retail sales fell in April for the second straight month, while RealtyTrac Inc. reported a troubling rise in home foreclosures.
Analysts say a drop of 10 percent from the market's recent peak would hardly be surprising, especially since recent economic readings have failed to beat ex-pectations.
