'Wall Street Had 2 Terrible Weeks. Here’s How 7 Traders Dealt With It.' diff viewer (8/9)

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Wall Street Had 2 Terrible Weeks. Here’s How 7 Traders Dealt With It.	Wall Street Had 2 Terrible Weeks. Here’s How 7 Traders Dealt With It.
2020-06-13 07:20:32 UTC	2020-06-16 13:06:59 UTC (3 days later)
The past two weeks were among the worst in recent Wall Street history, as anxiety about the coronavirus outbreak gave way to alarm and drove panicked investors to sell their stock holdings, obliterating roughly $2 trillion in wealth.	The past two weeks were among the worst in recent Wall Street history, as anxiety about the coronavirus outbreak gave way to alarm and drove panicked investors to sell their stock holdings, obliterating roughly $2 trillion in wealth.
Ultimately, investors were forced to face an inescapable truth: With factories and schools and entire cities shutting down, and no clarity on when or how the contagion would end, the global economy was shrinking. And the bull market that had run for over a decade was threatening to come to an end.	Ultimately, investors were forced to face an inescapable truth: With factories and schools and entire cities shutting down, and no clarity on when or how the contagion would end, the global economy was shrinking. And the bull market that had run for over a decade was threatening to come to an end.
The S&P 500 stock index has plummeted 11 percent in just 10 trading days. Three out of every four stocks in the index are down more than 10 percent from their peaks. On Friday, even after a slug of good news — the Labor Department reported that 273,000 new jobs were created in the United States last month — investors kept selling. The S&P 500 was down more than 3 percent early Friday, but rallied into the close, trimming losses to 1.7 percent.	The S&P 500 stock index has plummeted 11 percent in just 10 trading days. Three out of every four stocks in the index are down more than 10 percent from their peaks. On Friday, even after a slug of good news — the Labor Department reported that 273,000 new jobs were created in the United States last month — investors kept selling. The S&P 500 was down more than 3 percent early Friday, but rallied into the close, trimming losses to 1.7 percent.
Here’s what the past two weeks looked like to Wall Street traders and investors, from the Goldman Sachs trading floor to the Magic Kingdom, as they struggled to make sense of the market mayhem — knowing that it’s unlikely to end anytime soon.	Here’s what the past two weeks looked like to Wall Street traders and investors, from the Goldman Sachs trading floor to the Magic Kingdom, as they struggled to make sense of the market mayhem — knowing that it’s unlikely to end anytime soon.
Jim Stack was on the Big Island in Hawaii. A market historian and investment manager based in Whitefish, Mont., Mr. Stack was a 45-year veteran of the finance industry. He was nearing the end of a four-week stay at his Hawaiian home. He logged in to his firm’s computer network and got on a call with his team.	Jim Stack was on the Big Island in Hawaii. A market historian and investment manager based in Whitefish, Mont., Mr. Stack was a 45-year veteran of the finance industry. He was nearing the end of a four-week stay at his Hawaiian home. He logged in to his firm’s computer network and got on a call with his team.
It was 4 a.m. in Hawaii, but 9 a.m. in New York, and stock markets in the United States would open in half an hour. The prior week had ended with the S&P 500 declining 1 percent on Friday — several weeks since the first coronavirus case appeared in the United States, and two days after hitting an all-time high. On Friday, Mr. Stack had noticed “some pretty hard selling,” he said. It didn’t look like investors simply trying to grab profits and reduce risks,” he said. “It smelled like panic.”	It was 4 a.m. in Hawaii, but 9 a.m. in New York, and stock markets in the United States would open in half an hour. The prior week had ended with the S&P 500 declining 1 percent on Friday — several weeks since the first coronavirus case appeared in the United States, and two days after hitting an all-time high. On Friday, Mr. Stack had noticed “some pretty hard selling,” he said. It didn’t look like investors simply trying to grab profits and reduce risks,” he said. “It smelled like panic.”
In those predawn hours in Hawaii, Mr. Stack monitored the market open and saw “nothing but red” on his computer screen as just about every stock in the S&P 500 hemorrhaged value.	In those predawn hours in Hawaii, Mr. Stack monitored the market open and saw “nothing but red” on his computer screen as just about every stock in the S&P 500 hemorrhaged value.
“You had extraordinary selling right out of the gate,” he said, “indiscriminate selling.” It was one of the worst days that he could remember in the markets — “the intensity was not much different from Black Monday in 1987,” he said. On that dark day, the S&P 500 had plunged 20 percent. Mr. Stack didn’t make the comparison lightly.	“You had extraordinary selling right out of the gate,” he said, “indiscriminate selling.” It was one of the worst days that he could remember in the markets — “the intensity was not much different from Black Monday in 1987,” he said. On that dark day, the S&P 500 had plunged 20 percent. Mr. Stack didn’t make the comparison lightly.
Still, there was little for him to do. “We knew it was best to watch the mayhem from the sidelines.”	Still, there was little for him to do. “We knew it was best to watch the mayhem from the sidelines.”
Jeb Breece glanced at the nearby TV, tuned as always to CNBC. The volume was off, but it took only a moment for Mr. Breece, a principal at the New York money-management firm Spears Abacus, to glean what was happening. After Monday’s 3.4 percent decline, the markets had opened ugly and were getting worse.	Jeb Breece glanced at the nearby TV, tuned as always to CNBC. The volume was off, but it took only a moment for Mr. Breece, a principal at the New York money-management firm Spears Abacus, to glean what was happening. After Monday’s 3.4 percent decline, the markets had opened ugly and were getting worse.
The catalyst, as far as Mr. Breece could tell, was a warning by a federal health official that the coronavirus was coming to America; it was a question of when, not if. For a market on edge, this was enough to set off a fresh wave of frenzied selling.	The catalyst, as far as Mr. Breece could tell, was a warning by a federal health official that the coronavirus was coming to America; it was a question of when, not if. For a market on edge, this was enough to set off a fresh wave of frenzied selling.
Mr. Breece had been thinking for weeks that the coronavirus was going to take a bite out of economic growth and corporate profits. In mid-February the Chinese e-commerce giant Alibaba — a stock he owns — had warned that the virus would cause its sales to decline in the first quarter of 2020. That was a clear sign to Mr. Breece that the Chinese economy — the world’s second-largest — was in trouble.	Mr. Breece had been thinking for weeks that the coronavirus was going to take a bite out of economic growth and corporate profits. In mid-February the Chinese e-commerce giant Alibaba — a stock he owns — had warned that the virus would cause its sales to decline in the first quarter of 2020. That was a clear sign to Mr. Breece that the Chinese economy — the world’s second-largest — was in trouble.
Mr. Breece had started selling shares of companies whose fortunes are tied to the short-term ups and downs of the economy. Among other moves, he’d gotten rid of all of his shares of Schlumberger, the giant oil-services company.	Mr. Breece had started selling shares of companies whose fortunes are tied to the short-term ups and downs of the economy. Among other moves, he’d gotten rid of all of his shares of Schlumberger, the giant oil-services company.
But on early Tuesday afternoon, he was a bit surprised to see investors reacting with alarm to a federal official’s borderline-obvious prediction that America would not be immune to a fast-spreading virus. “I said, ‘Is that new news?’” Mr. Breece recalled. “Of course, this is bad.” But the selling pressure kept building, as the rest of the world focused on what Mr. Breece had already anticipated.	But on early Tuesday afternoon, he was a bit surprised to see investors reacting with alarm to a federal official’s borderline-obvious prediction that America would not be immune to a fast-spreading virus. “I said, ‘Is that new news?’” Mr. Breece recalled. “Of course, this is bad.” But the selling pressure kept building, as the rest of the world focused on what Mr. Breece had already anticipated.
The aircraft doors were closed, the plane was preparing to depart from Newark to Orlando, Fla., and Douglas Boneparth was anxious.	The aircraft doors were closed, the plane was preparing to depart from Newark to Orlando, Fla., and Douglas Boneparth was anxious.
The 35-year-old financial planner was taking his family to Disney World. The vacation had been set for January, but his four-year-old daughter got the flu, so they had rescheduled for late February. Now Mr. Boneparth was beginning to wonder if he would be able to fully enjoy the trip.	The 35-year-old financial planner was taking his family to Disney World. The vacation had been set for January, but his four-year-old daughter got the flu, so they had rescheduled for late February. Now Mr. Boneparth was beginning to wonder if he would be able to fully enjoy the trip.
For the previous five days, he’d been glued to news coverage of the spreading coronavirus. When the markets convulsed on Monday and Tuesday, Mr. Boneparth had been surprised not to hear from nervous clients; he later realized his repeated reminders to them — markets go up, markets go down, recessions are inevitable — had had their desired effect.	For the previous five days, he’d been glued to news coverage of the spreading coronavirus. When the markets convulsed on Monday and Tuesday, Mr. Boneparth had been surprised not to hear from nervous clients; he later realized his repeated reminders to them — markets go up, markets go down, recessions are inevitable — had had their desired effect.
But as he waited for take off on Thursday morning, he worried about what might unfold in the days ahead. “I am on the plane, on the tarmac waiting to take off during the first 30 minutes of the market opening, and it’s getting absolutely beaten up,” he said.	But as he waited for take off on Thursday morning, he worried about what might unfold in the days ahead. “I am on the plane, on the tarmac waiting to take off during the first 30 minutes of the market opening, and it’s getting absolutely beaten up,” he said.
By the time the plane landed in Florida, the S&P 500 had tumbled 2 percent — and was still sinking. His clients weren’t panicking, but he kept a close eye on his phone, as he and his wife rushed to a boutique inside the Magic Kingdom, where their daughter had an appointment to be transformed into Elsa, her favorite princess.	By the time the plane landed in Florida, the S&P 500 had tumbled 2 percent — and was still sinking. His clients weren’t panicking, but he kept a close eye on his phone, as he and his wife rushed to a boutique inside the Magic Kingdom, where their daughter had an appointment to be transformed into Elsa, her favorite princess.
The traders on the floor of the New York Stock Exchange were a mess. It had been a taxing, high-stress week and market fears were leaking into daily lives. Peter Tuchman, a floor trader for Quattro Securities, noticed that his colleagues on the trading floor were bringing their lunches from home rather than ordering out.	The traders on the floor of the New York Stock Exchange were a mess. It had been a taxing, high-stress week and market fears were leaking into daily lives. Peter Tuchman, a floor trader for Quattro Securities, noticed that his colleagues on the trading floor were bringing their lunches from home rather than ordering out.
“People were starting to be concerned about their health and the well-being of their families,” he said. “They’re worried about their portfolios, and they’re concerned that life as we know it will be interrupted.”	“People were starting to be concerned about their health and the well-being of their families,” he said. “They’re worried about their portfolios, and they’re concerned that life as we know it will be interrupted.”
With about 15 minutes left in the trading day, the S&P 500 was down about 3 percent, putting it on track for a devastating 13 percent loss for the week.	With about 15 minutes left in the trading day, the S&P 500 was down about 3 percent, putting it on track for a devastating 13 percent loss for the week.
Mr. Tuchman specializes in rapid-fire buying and selling around the opening and closing bells. This day, though, he had no interest in trading. He was staring at the largest, fastest market correction of all time. “I’m not going to stand in front of an oncoming train,” he said.	Mr. Tuchman specializes in rapid-fire buying and selling around the opening and closing bells. This day, though, he had no interest in trading. He was staring at the largest, fastest market correction of all time. “I’m not going to stand in front of an oncoming train,” he said.
And then, all of a sudden, the trajectory reversed. “Buy” orders — originating with index funds and pension funds — began pouring onto the exchange floor. Stocks jumped. That put pressure on investors who were betting on further declines; they liquidated their short positions, propelling the market higher still. Within minutes, the S&P 500 had climbed roughly 50 points, erasing a large portion of the day’s losses.	And then, all of a sudden, the trajectory reversed. “Buy” orders — originating with index funds and pension funds — began pouring onto the exchange floor. Stocks jumped. That put pressure on investors who were betting on further declines; they liquidated their short positions, propelling the market higher still. Within minutes, the S&P 500 had climbed roughly 50 points, erasing a large portion of the day’s losses.
Updated June 12, 2020	Updated June 12, 2020
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.	Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.