>> hi, everybody. good afternoon. welcome to the "closing bell." coming to you from wal-mart's manufacturing summit in orlando. as cnbc continues coverage of this remarkable story and bill it is good news that things are not busier today and it is a thursday in august because this would be complete disaster if it were a lot busier. >> we've been talking about it. it is a good thing it wasn't yesterday. a fed day or jobs day or god forbid an exploration day of some kind where you expect, where trading has to happen. let's bring you up-to-date here. i'm at the new york stock exchange. as maria mentioned, the story is at the nasdaq, starting around 12:15 eastern time. trading has halted due to a technical glitch. we are waiting for a few test

docs to resume as they try to get this system back up again. meantime, we have team coverage and army of experts for the next two hours on this developing story. but if you're just joining us, dominik chu has a recap of what has been happening this afternoon. dom? >> bill this is something short of dramatic, really. let's get you up to speed on what we know right now. we have been reporting on trading glitches happening with the nasdaq. all securities are, for the most part, not actively actively trading. one or two securities have been released now. just to see whether or not things can function properly. but i want to get you the latest update. we have the latest statement from nasdaq. they are intending to reopen trading, in all tape c, nasdaq listed secure wits a 15-minute note security. according to nasdaq at about 3:00 which is right now you will see shares of aame, supposedly

start trading. all other securities, all other nasdaq listed securities, will be released for quotation only. just pricing. at 3:10 eastern time this afternoon. then we will follow a 15-minute quoting period only so at 3:25 p.m., eastern time, all nasdaq listed securities are at least anticipated to be open for actual trading. nasdaq does want to point out here, if customers at all do be want to be part of this restart of trading, they should cancel all of their orders. again, nasdaq is not, again not, canceling any orders with regard to this restart of trading if you are a customer with pending orders in the system for nasdaq listed securities. you should go and cancel them out if you do not want to be a part of this restart of trading. again, key time you want to know, quotations for all nasdaq

security will start at 3:10 p.m. eastern time, trading itself. we will resume or as anticipated to resume at 3:25 p.m. eastern time this afternoon. so again, bill, mal lem maria, is big deal. but everyone has their eye on 3:10 when quoting starts and 3:25 when trading supposedly begins, guys. >> looks like trading on atlantic american has begun. but we are watching carefully to see this test stock and how it is doing. it seems to be trading right now, maria. >> this is one of three upsets in trading that happened just in the last two weeks. remember the major upset in hong kong in terms after trading glitch. then remember the trading glitch with goldman sachs. because that would cost them a hundred million dollars. this all comes back to market structure and the fact that this

market is so fractured, bill. i just hung up with an exchange source and they all agree that market is so fractured, different pools to trade in rather than one consolidated pool, that's one of the issues here, nasdaq of course, we've been calling nasdaq for a statement. we want to see what they have to say about all of this. bertha coombs, what are you hearing from nasdaq? >> they have not issued a statement, on the nasdaq trader where they talk about where this resumption is beginning. it is tough to reach someone right now. that is not generally the case. the nasdaq comes out and they don't want to put out wrong information so they hold their cards close to the vest. we will watch, obviously, the test stocks they are doing. atlantic american is one. there was another asian ishares that is generally not traded very heavily.

small market cap. they are testing that. and what is a nasdaq test stock, ticker for that. we can't put it up because it is not really in the system, is zvzzt. this is a small test here. obviously not very big volume test. it'll be very interesting now over the next 15 minutes as we start seeing some of the big nasdaq stocks that have not traded since about 12:25 today. what that is going to do. you know we have -- it is an day when you have big macro news like the fed minutes we saw yesterday, tuesday rather. but we do have news. carl icahn tweeting he is going to talk to tim cook about apple and he seems to be encouraged the possibility of buy backs. we saw what happened the first time he tweet bed about that to apple stock. it is interesting as apple is set to resume trading with so many funds that have not been able to trade.

so many traders that have not been able to trade these popular securities here for over an hour and a half. >> all right, thank you. stick around and keep us updated on anything you hear there at the nasdaq markets. just so orient you folks, if you are just joining us, we are watching this stock, atlantic american. this is a test stock. they reopened this stock to see if the system is working. the problem was the price reporting was the problem. they were trading but couldn't get the prices reported out there using technology. so they today halt traysing. now they are testing one stock to see if it is working. if it works they will try to get the whole system up by 3:25 eastern as we heard. trading here as been relatively normal, if you want to call it that. >> we didn't see a pick-up in volume here. it is possible to trade nasdaq

listed stock at new york stock exchange. that in theory would be a back up. however there was a halt in the nasdaq listed stocks, trading just behind me. shortly after nasdaq stopped trading because nasdaq requested nyse to halt trading. there is a back up here to trade elsewhere but in reality that back up isn't working very well. by the way, there is speculation about what happened. there are two possibilities. one is potentially a hack in their system. we don't know this for sure but that's a possibility. other is i think the most likely, just a software failure. remember, these are legacy systems. nyse and nasdaq has software built upon software that goes back many years. it has to interact with old software and software with other systems. as systems get more complicated, it increases the possibility of some kind of failure. sec has been concerned about the problems and legacy issues for a

long time. regular sci would stand for technology issues across the board. but my guess is that will get a lot more attention in the next couple months as people look at this. as for what people are talking about, i think some guys are loading still about nasdaq. a lot of people realize there is a technology issue that can happen with just about anyone. i've been asked this question, what happens to the exchange traded funds. etfs, like the spider. which is the s&p 500. half of the stocks are not trading. this is a decision that has to be made by stock exchanges. they are not halting it. i did talk to etf traders about this. this is an interesting question about whether the etf should be halted. traders are telling me that rational for keeping them open is they would use the same issues that would happen if an international market was closed. you have price discovery from currencies. so i think the thinking right now is you ought to keep those

etfs open for the moment and use other kinds of discovery methods for when they will possibly open. guys, back to you. >> bob, stay where you are. i just want to point out that i'm glad you mentioned the names and s&p because the fact is, 110 issues in the standard & poor's are nasdaq stocks. >> 22%, yeah. >> yeah. even though this is a nasdaq problem. that account for 3, 4, 5 trillion in market value. that's 23% bill of the s&p's market value. let's talk about this, joining us is jan, brian, ann, bertha, dominik. ann, what do you do as an

investor? is this just a confidence blow or something else? >> i think it will affect confidence in the very short term. as you said, in the beginning of the program, maria, a very slow volume low liquidity day. so when there is low liquidity, you already have -- sorry, spreads on names grow. so that's happened. but it hasn't caused any major problems for us. i actually talked to our traders. they aren't having any major issues today. but we want to see what end result is. what caused this and if it is only, 2 1/2 hours today and issue is resolved end we don't have any more problems, i don't expect it to impact confidence long-term. >> you are one of the biggest vicks traders. so i guess you weren't bothered by this. but give us the perspective of an options trader that can't trade because there's no trading going on. you know, what is going on today for these guys? >> you know, certainly, it was an interesting story.

midday it got very quiet. just looking at broker dealer, the market making side of the business, we went through about 10-minute span which is very unusual for us, to not execute a single trade. keep in mind, options are priced on time value. timed exploration. that is decaying away on you. guys holding weekly options that are long options, that is decaying with less trading going on. it is impossible to hide yourself if you have a nasdaq listed stock. that makes it difficult. based on that we saw some people selling option premium and some index to at least try and cover option premium here. but this makes it a difficult time to trade because your whole model is getting skewed here. >> guys, we are seeing stocks resume trading here. coming across the wire. >> go ahead. >> jetblue. whole foods. value click. obviously we will be watching for apple. that's going to be the big one.

and also qqqs as well. nasdaq not just and the s&p 500 but think about your fund manager today. have you it make different allocations. so it impacts across the fund universe in mutual funds as well. the market seems to have taken this quite well. but there are implications here fz for those just joining us, we show you apple, it fell below the time the trading hull happened. i don't know if there was traysing but it was eerily that moment when we see the drop there as it fell below $500. maria? >> two point. and carl icahn sent out a tweet, by the way. let's get your thoughts on the floor of the nasdaq. >> couldn't have happened to a bunch of nicer people. >> easy, easy.

>> i used to work for bob when he worked his magic down here with his -- i ran his brokerage operation, so i have a little bit of contact. i surprised you can't get a hold of bob. but that is significant in the fact there are three dow stocks are effected, not trading. and the real concern, i was just chatting with new york stock exchange officials. there's been concern because this was actually a regulatory halt. primary market halted but because of the way they book down over over wherever the nasdaq is, time square, when they broke down they couldn't send out the message to shut down. trading nasdaq stocks, continuing to trade for ten minutes, the direct edge and i believe for over an hour. so what is hatching now, thousands of trades are being broken and made now by the

different exchanges. >> bertha, you have something to add? >> yeah, that looks like it is coming out ahead of time. it does have this quote. i apologize for that. despite of the fact you may be seeing on the dow jones news wires and others that trading has resumed in the securities, they are still testing them and trading is set to resume i believe at 3:25. >> tell us the impact you are seeing today. you're a long-term investor and yet, if you can't trade some of these stocks, you can't trade these stocks. so what is the impact from your standpoint? >> two points. first rule of engineering is all systems fail. it can happen, will happen again. second point, last week about this time, we were a day shy of a lot of options expiring. if you're short term oriented,

be aware it will happen again and prepare for it. >> you know, i don't want to sound like we're pining for old days, ron. but you remember the days, i know you remember the days to trade, you picked up the phone, called your broker, called the human being. do you pine for those days? are we making things too complicated with the computers out there? i'm told that this trading glitch is such they couldn't reboot because the system is so complicated it is not that easy to fix in this short amount of time. >> let me tell you a story, i will try to keep it short. jack was monitoring and there was a guy trying to trade with us. so any time you deal with the system you have to understand the strengths and witnesses of

the system. all systems fail. whatever your trading mechanism is, be prepared for that. and all that happens to us today is investors as anything we want to sell on the nasdaq or buy on the nasdaq today will wait until tomorrow. after 4:00 i think it shuts down for something like 16 hours. but of course it is predictable. so this will happen again. be prepared for it. >> i just wonder in terms of the orders that won't be cancelled. as we heard earlier from dominik. dominik, give us more on that. because there could be people that didn't realize there was trading glitch and could be on the money-losing end of us as a result. >> on facebook. >> that's what i want to address. i spoke to a number of different traders on the street. two senior ones at brokerage and electronic brokerage who said they are telling clients, before you jump in on this, make sure you are clear about what your risks are and they suggest not

going in right away even when things start because you don't know exactly what will happen. nasdaq said that they anticipate opening all of this trade willingiing at 3:25 eastern. i also want to bring you up to speed on one additional item that nasdaq has just put out here. they did say that nasdaq listed securities is resuming at 3:25 and that the options exchange, philadelphia, will purge all relevant quotes here after this time, and may begin sending quotes. the philadelphia office exchange will resume trading in all options classes at 3:35 p.m. eastern time, again 3:35 eastern time on the philadelphia exchange. it just tells you how developing this is. >> that a great point dominik. that's a great point. you are going to see market share taken obviously. earlier cme group was trading nasdaq futures. they were the only ones at one

point. so this is -- really a black eye for nasdaq no doubt we need to hear from bob greifeld of the nasdaq very soon, people want answers. but the bigger point is we could see market share losses as this fracturing of the market continues. sec needs to get involve end really make decisions on market structure bill. >> i need to ask brian, as long as we are talking about this, to use that term options, what kind of options do you have yb in terms of where to go to trade when a primary dealer of whatever you're trading goes down. >> basically the option here is to go to the futures market. if you needed volatility, you still had that in place. so separate anything related to the nasdaq. same thing you talk about the cme group staying open. s&p minis were still open so people could come to our exchange and change the spx options. certainly you could look to

other indexes. good thing we didn't go down globally. to the point to others here, this is a down moment. almost feels like an extra vacation day in the market. i guess that's how you have to treat it. whether it is before the close today or tomorrow when you can execute trades. you just trade it as vacation day for some other things. if you need some sort of edge or access, it was a good thing the future market stayed open and you could have access to that. >> all right. >> when is the last time you saw a chart like this? nasdaq straight line, bill. 2 1/2 hours. moments aby from the nasdaq to resume entirely -- >> we think. >> -- about five minutes away. we'll see. >> yeah, go ahead. >> the interesting thing is how well the market has taken this in stride. in essence because we've had dress rehearsals for this. we have seen this happen before, whether it was the bats ipo or

facebook ipo and participants on a quiet august day seem to be just waiting and looking and seeing what's going to happen. there are a number of participants. i talked it traders who were leery at seeing this kind of reopen at this time of day. this is normally when everyone is getting ready for the close. as you know, we call it the most important hour of the trading day. this is when volume surges. so this is a very big test here. on reopening. >> i just spoke to one trader -- yeah, i just spoke to one trader, and he said to me, this is a disaster. let me bring kate kelly in. she is also talking to traders and hearing real frustration. kate, over to you. >> that's right. i have spoken to people at banks as well as the huj fend community. and there is frustration all around. one trader i was just e-mailing with says, we are okay in terms of how we are positioned and our ability to get through this. but this really is is

unacceptable. that that's what we've been hearing. they told some people privately they expect to get the market up by 2:45 or so which is the original announcement, but now we are still waiting. the market as ber that pointed out is thriving and managing through this. this is an panic scenario. on the other hand, the way nasdaq is treating this is -- >> bob, the question has to be asked, how is the nasdaq allowed to effect a regulatory halt and then force other market makers who are willing to make a market, like the market makers on the floor of the new york stock exchange, why are they shut out of making a market? who gave the authority for the regulatory halt? that's got to be the first question to ask bob greifeld when you find him. >> one at a time. >> maria? >> part of the issue here is the

technology group itself. it is the quoting system to quote and be able to see quotes that went down. so when you have an inability to see quotes, you don't trade the nasdaq, you know, person that -- >> the nasdaq is a montage system and any other market maker can post their bids and offers and be represented in the marketplace. it is not a system to the nasdaq. the market system can continue. >> by the way, ben -- hang on, bob. let me get this in. ben you mentioned earlier you thought direct edge was another trade for an hour after the halt. but we are hearing from direct edge they did halt trading as well at 12:17. >> there is a statement from nasdaq that says trades executed between 12:14 and 12:23 will stand. there will nobody no busting of those trades. that is after the nasdaq itself was halted. there were trades done after that. and apparently they will let them stand. that's what nasdaq is saying.

>> ben, you're making a -- >> let's bring in -- >> you are making good point. >> thank you, maria. >> what do you make of this glitch? and oh, by the way, 294 on the ten-year note as well. >> that's right. and 170 on a five-year. i think it is a shame that mr. greifeld went through the carnival cruise crisis management school. that's the example given on this trading floor. it reminded them that nasdaq grew a rutter the last few hours. but there is two schools of thought down here. the bulk of the income of the nasdaq are high frequency guys. remember, high frequency guys don't need to do something in the market. high frequency guys calm the market. the people that really need to do something now are broken into two categories. those that are involuntary that have to deal with two positions and those that are voluntary.

the involuntary is disenfranchised. that's why the squawking level is low. those doing bulldozers for nickels might squawk a bit. but when it opens they are -- >> i really think the biggest issue is that these are, as bob bob pe isn't ay pointed out, like netflix, if anyone at home had new technology, that's the way it was described on the trading floor. >> ben we are waiting for the nasdaq to resume all its trading at 3:25. we are just a couple of minutes away. but you made the point that why was the new york as to also stop trading, wouldn't that have opened the same issue though that it is just fractureed. you have one area. i realize if one area would have traded, to trade nasdaq stocks,

you would have at least had the liquidity. >> with nasdaq on the march or third term operators would make the markets when we had our own issues. question is you are allowed protection that no one can affect your proprietary side. so the question is who gave the authority for regulatory halt when the rest of the systems in the united states of america were ready to continue to trade. >> and ben this is one of the arguments that was made against robust back-up systems. people ask, gee, why didn't a back-up system kick in. >> trading has begun. you can see the nasdaq composite we've been showing flat lining the lot of two plus hours, is now moving. but not moving a whole lot. >> bertha probably sees this

too. we see apple and amazon started trading. >> we're getting there. >> it'll be crazy to see whether or not this goes up smoothly or whether or not there are still hiccups in the first 10 or 15 minutes. >> and what's as in nasdaq omx doing? >> i'm looking. >> people thought they had cancelled their trades and got reports. >> you see the nasdaq itself, down almost 5% in trades. guys, i'm standing by the post where a blot of nasdaq post at the stock exchange. there are about 150 nasdaq stocks that trade at the stock exchange. they have been halted for several hours. here they are, some of them in red. we are still waiting for them to open. while we get tape c open here at the new york stock exchange. we are still waiting for them to open. guys?

>> i just heard from an old, old friend, jim i got your tweet. i appreciate it very much. he is an old former mutual fund industry executive. he wonders how mutual funds will price the values of their funds tonight with all of the chaos. wells fargo advantage funds, i don't know if you know the answer -- oh -- did i -- okay, sorry. we lost them. >> another issue we have to deal with tonight. >> right. they are going through this sequence this late in the day for that reason, to accommodate the mutual fund world. they need to mark their portfolios for the said will have u. >> boy. all these unintended consequences come up as the day goes on. you have to rethink these mechanisms that we depend on throughout the trading day here. >> all right. so a three-hour halt. all nasdaq listed stocks resuming right now. after that three-hour halt, we

are still waiting on nasdaq to give us a statement because things have just opened. nasdaq omx, parent of the nasdaq, we are seeing trade down 5%. that is as you would expect dpifen the glitch. these are one of three glitches that happened since last week. as i mentioned earl your, a lot of market players talking about the fracturing of this market. so many pools to trade in and rather than one pool all together. that's why ben willis's comment is interesting. when one closes down, should another open up so liquidity is there for investors. sec has a lot of work to do. >> that a regulatory question. ben willis, are you surprised we aren't seeing meaningful selling as macets slowly reopens? >> no. again the fortunate side is that this is a thursday in august and you could tell by the train or traffic coming in, there were an

whole lot of players. so while this is certainly an important issue to be dealt with, the timing of it probably couldn't have been at a with better time to have a problem. >> i don't know who we have left. every time i try to ask a question, they left us here. ron, are you still with us? >> okay. he is not either. >> bill, it is kate kelly. i have a point on an earlier topic. >> yes ma'am. >> there was discussion about why there had to be a regulatory halt and markets had to shut down. i think one possible answer is even though nasdaq was having the problem, you have problems with nasdaq based options and there were some exchanges that couldn't tell the difference between a nasdaq listed option or same security that traded on the nyse for example. in order to make sure there wasn't further error and further confusion, maybe that's why it made better sense to shut down

all of the exchanges and options. >> not to mention fairness. if you want to trade nasdaq and the platform you normally trade on is nasdaq, if you do it on platform and you can trade, i don't know if it can be somewhere else. i don't know about swap schwab or etrade. >> and you can't get pricing no matter what venue you go to. if you can't get a price, you can't effectively trade it no matter where you go. >> you're on to something there maria. >> discovery. >> let's take a quick break. we will come back. now that the nasdaq resumed trading at 3:25. we will take a short break. in the meantime, bill, a rally under way. dow up 75 point. >> even though the ten-year note is around 1090, which we believed would be a trigger for the market to go lower. so that's not happen pg. we have a lot to cover as we get to the last half hour of trade on what has been a very

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welcome back, everybody. what a day on wall street after three-hour halt. nasdaq stocks have resumed

trading. there's the nasdaq composite. as you can see, the market was halted for three hours. want to get the latest. we are still waiting for a comment on nasdaq to exactly what went wrong. >> maria, here is what we know. first of all, earlier today, around 12:20, we know there was a halt of trading. nasdaq listed securities. again, there is a problem with the pricing engine. we didn't get prices for a lot of these securities because of that options markets at the nasdaq were closed, shut down, halted for trading opinion again we learned a little later on that nasdaq was putting a time line with regard to when they would try to restart things. at first they said they would try to restart things with five-minute quote only window. that's to say, start pricing. start letting market participants know what prices were and five minutes later let them start to trade. that is expanded to 15 minutes

then we found out around 2:45 h afternoon they would quote at least one stock on trial basis, if you want to call it that, with trading it self to resume 15 minutes later at about 3:00 p.m. eastern. we found out at about 3:10 they released all nasdaq listed securities for pricing. then at 3:25, that when they opened it up to actual transactions for trading on this. the latest we know on this particular story is that with regard to the options pricing, we do know that around 3:p 5, just about right now, trading will resume on all options classes at the philadelphia options exchange that's own id by the nasdaq. later on, other options for nasdaq will resume trading at around 3:40 p.m. eastern time. they say that normal intraday pricing quoting requirements will be in place for all options markets and if you have any issues, please contact the

nasdaq. but what we don't know, maria, bill, is like you said, we don't know what caused this. was there anything else besides these markets that would have been infected. remember this is a big deal because it affected all markets. you couldn't trade any nasdaq listed security on any venue in the united states. so there's still a lot of unanswered questions. ones i'm sure nasdaq will be pressed to give answers to in coming days, guys. >> sure would be nice. even if it was just i don't know. thanks, don, very much. washington is watching all of this very carefully. the president has just been broefed on what we are now calling the flash freeze. >> the president of course, is on a bus tour of upstate new york. he is in rochester new york today. he has been talking about college pricing so this is off

topic but of course they have all of the communications gear that they need on that bus to keep the president up to speed on anything that's going on in the world including now today. this disruption over at the nasdaq. not much, the president of the united states can do about this but they always want to keep him up to speed on anything that represent any kind of disruption to the u.s. economy. bill. >> all right, thanks very much. meantime, as we head toward the close, i presume nasdaq will close at the normal time. we will see as the trading progresses. the dow is in rally mode. up 77 points. six straight down days, maria, where the dow lost more than 3%. now we are in come back mode today. a gain of 79. almost back to 15,000 right now. >> i ronnic, isn't it? will trading halt debacle at as in back shatter investor confidence in trading? more on that when we come back. stay with us. i hav

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processing orders from nasdaq. so i understand that it's up. i'm not sure it is up and running completely. i want to point out completely here, folks, there are 150 nasdaq listed stocks that trade at the new york stock exchange and many of them trade right here. you see the reds still up here. i don't see them trading. looks like we are still waiting for the stocks to come up in some way. >> we're still trying to figure out how much of the system is up and trading. i've looked at big names, like microsoft for example, they do appear to be trading but it is not clear if the whole system is up and trading here.

there are reports of sporadic difficulties with trades with nasdaq. we will sit here and see if they can sort it out before closing. who knows, there is a possibility they may extend the close if they need to sort things out. >> i'm sure. >> crazy day. >> ben, john, we were just talking about mutual fund companies. you need the nasdaq to open to get prices so you can set your net asset values tonight, right? >> yes. one wonders whether their i.t. department is fully staffed o on a summer afternoon. but it is very surprising and disappointing this problem would persist for several hours. like the ticker tape of nasdaq, it is a price printing mechanism. why they have no contingency

plan or back-up system, i'm sure people will ask that question. >> yeah. >> did you have a contingency? we're hearing there may be some issues involving price reporting at the nasdaq. who knows what they will do with this trading day. what will you do with your net asset values tonight? >> we may have to convene our pricing committee. i'm hoping this won't be one of those times but we do have a committee for that purpose. >> dennis, how do you see it? >> yeah, this such an embarrassment to the entire financial community. to have the nasdaq go down as it has. to be down for three hours. one thing to be down for five minutes. to be down for three hours is absolutely inexcusable. >> and with no comment. no answers at all. >> it remind me of waiting for airplanes at u.s. air at the terminal and hearing nothing

from anybody and you get angrier by the hour. >> but you got a trade. you know, invest other people in his money. >> what do you do. >> first thing you turn, if you have exposure, if you are under invested or over invested, you try to outlay oz much risk as you can. that's why you saw a pick-up in activity in the futures. those markets did what they are supposed to to. how you market yourself tonight is beyond me. remember the futures trade for another 15 minutes after the 4:00 close. i wouldn't be surprise fed they extend nasdaq to 4:15 to accommodate that. >> have you ever seen anything like this in your career, three hours without being able to trade. >> i asked the staff and no one could recall a situation like this. no. >> so what do we do, then? if you can't trade, are we

looking no perhaps trade futures at cme? as investment participant, in this market, do you wish for all te alternatives, even though everyone in should close out when one part of the market is down? >> most orders can wait until tomorrow. i guess they have to. we, again, cannot afford to but this is definitely inconvenient. >> let me get a fundamental question. yields are going up 2.9 over night on the ten-ier and we have a rally on the stock market today. what is going on? >> bill this should not be uncommon. we will see rates go higher for the next second years. the economic activity does not mean that share prices have to

go down. there are plenty of periods of time when interest rates go higher an stock prices go up with them. we are in that period of time right now. we will probably see that. >> are you surprised the nasdaq hasn't fallen after we reopened here? >> not really. given the fact the s&p's are up seven or eight handles since then? >> yeah. >> given the fact the other indices are up. the fact that it is opening higher is what it should be doing. >> the nasdaq is down 5%. investors are making some bets, given the nasdaq situation. thanks, guyes wis, there it is. you would think so but heads didn't roll after facebook. and heads didn't roll after goldman sachs trading glitch. and heads didn't roll after the mini flash crash a couple years

ago. so where is the securities and exchange commission? i would like answers from mary jo white as well. >> exactly. got a new sheriff in town. very interested to see how mary jo white handles this situation. we have seen a few changes in how they handle it. i'll be interested to see what she does with this one today. >> thanks, everybody. we we will take a short break. we have 15 minutes before the trading day end. >> hmoving higher. imagine what could have happen fed it was a busy trading day. find out how bad this could have been, when we come back. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me.

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the dow is up 78 points. nasdaq calling for three hours due to trading glitch. they resumed trading about 30 minutes ago. maria, that market is trading higher. but what a crazy day. what we thought was going to be a slow news day anything but here. >> really, sky bridge ka kacapil

is with us. nasdaq trading, halted for three hours. >> i mean, the short term observation would be, it may give people another excuse to sell assets as we go through the mild risk but the more relevant medium to long-term observation is, it is relatively relevant and also how the markets digest the fed tapering and eventually miking rates at some point. >> quite a bump in the road. >> jeff cox, as we say, boy, a good thing this wasn't a fed day like yesterday. an expiration day or some other big news jobs day. it would be a debacle, wouldn't it? >> absolutely, bill. on a low volume day like today, a lot of trading was happening in the etf category. look if somebody didn't tell me this happened, i wouldn't have known it. it is simply because trading

volumes are so low. some are interesting conversations. some have been with system guys. people on the tech side of the trading plat forms and you know, i'm not trying to put the tin foil hat on here but i think one of the things that has to be addressed is whether this is something more ne no fairus than the basic error. we need answers to figure out what really went on. >> yeah. >> but they said it is a complicated system. not like just rebooting earlier and that's right and we do need to hear from nasdaq. >> that's the whole thing, maria. >> we have been hearing behind the scenes, we should say they were caught flat-footed. a lot of people in communication over there. the arms around -- >> we have these complex systems, and there are like 12 people in the whole country who understand really understand how these things work and when they

go hay wire, just in 2013 america, our capital markets are crippled as we saw today for throw hours, major exchange goes down from trading. there is a lot of disgust that i heard from traders today just like are you kidding me. >> yeah. well. there is a lot of that going on right now. >> are there worse ramifications? bigger implications than just frustration at this point, troy? >> well, we don't believe so. again, markets are up last we checked. they have gotten back into trading -- >> and the next several months are whether or not markets can digest tapering and now europe and china are showing greater signs of recovery than people would have thought six or eight weeks ago. >> we noted overnight hitting 294. march to 3% continues. is there a point at which it gets to a level where it crimps the style of the stock market do you think? >> clearly, one of the reasons we have turbulence is because

markets are transitioning from hyper monetary policy to slightly less than hyper loose monetary policy. the front and anchor, ten-ier over 4 or at 4%, back-up in 2010. the back up though is that economic conditions are far greater and we are trending in a far stronger condition. so it is much harder for equities to make new highs. over the next six to nine to 12 months, trends are higher. >> get back on the phone. see what you can find out. >> you got it. >> see you later. we're going to take a break. i guess the market will close in six minutes. but we will come back with a closing countdown much more on the fall out from today's nasdaq trading freeze. >> we are getting an earnings barrage. we will have results coming up. you're watching the "closing bell" on cnbc. first in business worldwide. [ female announcer ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion.

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[ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ just inside the three-minute mark here, maria. we look at nasdaq and that's the story today, obviously. but before the freeze began, we had some pretty descent economic date why out this morning. manufacturing was pretty good. the jobless claims there wasn't bad and home price index, strongest gains in home prices in the second quarter sends the financial debacle began back in 2008 and the one -- or leading

indicators was also higher. we had a good day going to that point. and quietly, all of a sudden, they halted trading and we flat-lined until the closing here. we are going up well with a begin on the nasdaq of about 37 points. >> that's an amazing charting with bill. rarely do you see a straight line. it was halted and sut down for three hours. and for three hours we have no idea what happened. and we are still questioning what the heck happened. >> exactly. real vacuum from the nasdaq in terms of gidance. so the dow -- just kept going higher. especially in the last hour of trade. we were up by i think 80-some-odd points. we have come off that now and even more remarkable, last night the ten-year in overnight trade was bet are than expected economic data from china. that pushed the ten-year yield to 2.94 and we are going out around 2.98. let me ask you this bp what do you make of like, you just write

this off or what do you do? >> you do, unfortunately. nobody was happy. what people don't realize is that not only can we not trade the nasdaq securities, but it affected the calculations on the index and the options mark the we just recently opened. it is one of those things you do. you write it off. i was smirking to myself and make it easy to draw resistance. that's for darn sure. but hopefully we will get back on track. we will trade normally tomorrow. >> maria, you have a lot of earnings tonight as well? >> yeah. earninges from gap, pandora and we will speak with the head of u.s. operations in wal-mart. we will do a zeroing in on the consumer coming up as well. obviously the nasdaq, waiting for information out of nasdaq. hoping to get some kind of statement for nasdaq to tell us what exactly went wrong and what was behind this three-hour trading to all nasdaq stock. we are trying to get back to the next hour. >> all right.

all that plus harvey keith see you later. >> thankses. >> hopefully we will have a normal trade willing day the next time we see you. what about the regulators? we will talk to harvey in the next hour as well. what a crazy day. dow finishing up about 68 points, still below 15,000. now maria in orlando, florida. i will see you tomorrow. >> and it is 4:00 on wall street. in orlando. that's where i'm coming to you from. . do you know where your money is? hi, everybody. welcome back to the "closing bell." stocks higher on wall street today despite a three-hour trading halt at nasdaq today. we are waiting for answers as to why all nasdaq stocks were shut down. no trading for three full hours. full team coverage and what is going on at the nasdaq and what it means for your investments coming up. also coming to you from the wal-mart manufacturing