Dec 26, 2018

Computerized trading is being tested by economic slowdown

Photo: Xinhua/Wang Ying via Getty Images

About 85% of all stock trading has become automatic through machines, models or algorithms, "creating an unprecedented trading herd that moves in unison and is blazingly fast," The Wall Street Journal reports.

Why it matters: Computerized trading grew up "during the long bull run, and hasn’t until now been seriously tested by a prolonged downturn." Monday was the worst Christmas Eve for the Dow Jones Industrial Average in its history.

What they're saying: Computers are automatically buying and selling stock based on models. "Lately, they’re dumping stocks," traders and investors told the WSJ.

  • “Electronic traders are wreaking havoc in the markets," Leon Cooperman, founder of hedge fund Omega Advisors, told the WSJ.
  • “The speed and magnitude of the move probably are being exacerbated by the machines and model-driven trading,” Neal Berger, head of Eagle’s View Asset Management, told WSJ. “Human beings tend not to react this fast and violently.”

Go deeper: 2019 could be the worst year for the economy since '08

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Trump's new purge

Michael Atkinson, arrives in October for closed-door questioning about the whistleblower complaint. Photo: J. Scott Applewhite/AP

Sources close to President Trump expect him to fire more inspectors general across his government.

What they're saying: Conservative allies of the president have told him that these IGs are members of the “deep state” trying to undermine him. Trump appears to have embraced that view.

Coronavirus dashboard

Illustration: Axios Visuals

  1. Global: Total confirmed cases as of 11:30 a.m. ET: 1,140,327 — Total deaths: 60,887 — Total recoveries: 233,930Map.
  2. U.S.: Total confirmed cases as of 11:30 a.m. ET: 278,568 — Total deaths: 7,163 — Total recoveries: 9,920Map.
  3. Public health latest: The CDC is recommending Americans wear face coverings in public to help stop the spread of the coronavirus. The federal government will cover the costs of COVID-19 treatment for the uninsured.
  4. 2020 latest: "I think a lot of people cheat with mail-in voting," President Trump said of the 2020 election, as more states hold primaries by mail. Montana Gov. Steve Bullock said Friday that every county in the state has opted to expand mail-in voting for the state's June 2 primary.
  5. Business updates: America's small business bailout is off to a bad start. The DOT is urging airlines to refund passengers due to canceled or rescheduled flights, but won't take action against airlines that provide vouchers or credits.
  6. Oil latest: A pivotal Monday meeting among oil-producing countries to discuss supply curbs is reportedly being delayed amid tensions between Saudi Arabia and Russia.
  7. Military updates: Senators call for independent investigation into the firing of Navy captain of the U.S.S. Theodore Roosevelt. The U.S. military is struggling to find new recruits as enlistment stations are shut down.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

U.S. coronavirus updates: New York reports record 630 deaths in 24 hours

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

New York reported 630 new deaths in 24 hours, Gov. Andrew Cuomo said Saturday — an "all-time increase" that beat the previous day's record of 562 deaths in one day.

The big picture: As expected, COVID-19 death tolls are rising in the U.S., killing more than 7,100 people in total, and over 1,000 in 24 hours alone. The CDC is recommending Americans wear face coverings in public to help stop the spread, marking a significant change in messaging from the Trump administration.

Go deeperArrowUpdated 49 mins ago - Health