good morning, it is 8 a.m. and 11:00 a.m. on wall street. "squawk alley" is live. ♪ ♪ in the days of my youth i was told what it means to be a man ♪ ♪ now i've reached that age i've tried to do all those things the best i can ♪ >> welcome to "squawk alley" for wednesday. big market day obviously. joining us as always jon fortt and kayla tausche. one of the topics we were going to discuss at the top was apple and the fact that apple watch sales according to some third party studies are coming down. as we're speaking getting flashes on dow jones regarding the new iphone. apple preparing a record number of new iphones dow jones says,

an initial run would be a record adding force touch technology to two new models, new color and considering adding a third assembler in order to meet demand. people have long talked about that cycle peaking. these headlines would suggest apple thinks otherwise. >> yeah, but you got to look at this in the context of the warning from samsung that we got earlier on in the week. part of the issue there was samsung miscalculated the number of galaxy x6s versus s 6 edges that were going to be in demand. tim cook, apple's ceo is a logistics specialist and clearly they can see their supply chain and demand better than most because they have the apple stores, if, indeed, they're preparing more iphones than usual it's not a big deal because they usually sell more than they did the year before and understand their cycles. if they manage this bert than samsung did they're likely to capitalize and capture the share that samsung wasn't able to capitalize on.

>> they normally gross sales year over year but the fourth quarter is usually the most popular for the iphone especially in a year, carl, where we are expected to get an update to the iphone 6, iphone 6s, so this seems to be an incremental development. >> stock was under pressure this morning. a lot of people wondering if it's going to retest the 200 day turning around just a touch on some of these headlines. meantime, broad weakness across the board after the sell-off in shanghai overnight. continued worries about greece, plenty of volatility. the dow down over 200 at the lows, now down about 153, of course, fresh worries about the markets and economy in china, bob has that covered on the floor. >> that's right. what we are seeing today is a reaction to china and concerns about slower global growth and not that much to greece. now, let me show you germany here because germany's well off their lows. i hope you have been listen to

michelle caruso-cabrera. ahead of the so-called firm deadline sunday when all the euro group will be meeting. germany is sitting right near the highs for the day. up 1%. when it's about china, look how the market has been reacting. all of the sectors around commodities and global growth issue, the energy stocks, materials stock, they're the ones leading the market lower. here in the united states, what's weak again is stuff around growth so the transports once again, right across the board. doesn't even matter what sector. avis is down, airlines are great, con-way, expediters, a lot of those company, everything is down 1% to 2% in the transports. one of the clear ways you could see global growth concerns we look at industrials and subsector of industrials called multi-industry company, these are companies that sell to many different products in many, many different countries all over the world, dover does refrigeration and food equipment, energy

component. they're waeshgs rockwell, big industrial power company, they're weak, emerson is down 2%, another big global company. ge is down, any of these big global multi-industry companies are all down. that's a sign of concerns about china and slowing global growth. finally i mentioned this earlier today, people say, well, good parts of china are closed. they halted trading or companies have asked companies to stop trades and we don't know what the chinese market is like. in the u.s. there are number of mainland china etfst. sahr, down 7%. this is reflecting traders' opinions about where the chinese market might be going overnight when it opens again if it does open and the important thing this is not reflective of what happened last night. these are people trying to bet what's going on right now and, carl, this has been a a very efficient price discovery mechanism in the last few days as there's been restrictions on china trading imposed by the

authorities. keep an eye. those etfs are working and trying to figure out where the markets in china might be going. carl. >> i'll take it from there, bob. etfs and adrs, we'll follow this throughout the hour. shares of app the down more than a percent that coming as we get the news at the top of the hour the company is prepare forego a record number of new iphones. apple sitting below $124 a share and joining us now is walter price, senior portfolio manager with alion global investors where he manages the technology fund. you're up more than 4% year to date. it's about 5% of your fund, and we'll talk about apple in a bit but we have to start with china. there's this fear that the contagion is spreading from companies not based in china but do business in china and i'm wondering how systemic you see the trading across tech and across the economy more broadly. >> well, i think with respect to

china we're feeling that most of the investors in chinese stocks are individual and that represents less than 10% of the chinese population so i think it's a relatively small problem and china has a lot of money to fix the problem so we're expecting the authorities to come up with a solution probably similar to what we've seen in other economies where they reduce interest rates and put some money into the economy so i think it's a short-term problem but over the intermediate term we think the authority also fix the problem. >> short-term problem, walter but certainly affecting the stock prices especially of the chipmakers which do a large amount of business in china. is there anywhere you would recommend staying away from, any niche sector you think would see an undue amount of influence from what we're seeing in china? >> well, we've been stay ago way from the hardware sectors because we think, you know, not

only do you have some weakness in the growth in china and emerging markets but you also have this move to cloud computing that's depressing demand for hardware and so why think that that's an area you want to stay away from. you want to stay away from hardware. you want to stay away from some of the big software companies, and you want to know cuss on this move to cloud computing where you've got very high returns and very high growth. >> walter, i hear you saying you see this as being a small problem in china. only 10% of the population invested in the market but at the same time that's probably a key 10% middle class, upper middle class, people trading on margin. i think we don't understand or i don't exactly how the investing culture works over there, exactly how people respond when what they thought was disposable income might be evaporating. at what point will we be clear on what the effects of the chinese stock market moves over the past month have really been? is it going to show up maybe in earnings this season?

whirl we have to wait yet another season? when will we know whether you're right about this impact? >> i think we're going to have to wait till third quarter reports. we're not going to see it in the second quarter. second quarter, i think, at least on the internet retailing side, which are the stocks that we're involved in, internet gaming, i think those were pretty good in this quarter. so companies are still growing, you know, 30, 40, 00%, so i don't think you'll see the effect on growth if there is any until the third quarter. but i don't expect to see much in the way of an effect on internet growth because internet is basically taking share of retail. i do think retail is a little softer than people think in china and the economy is softer than the 7%, so i think you are going to see some companies comment on that and you're going to see the authorities continue to loosen interest rates and try to stimulate the economy.

>> i think your point, walter about them having a lot of money to throw at the problem is understood by our viewers, but that's not exactly how high praise, nor is it -- nor is it healthy for the evolution of their markets overall to cover this up or delay the pain. >> yeah, i do think that the chinese government is a little bit naive and is sort of having to relearn the lessons that we've learned in the u.s. and the developed markets, but fortunately it's not, you know, people were saying that the chinese stock market represents a very small portion of gdp. you know, i think that's a good thing actually. learn your lessons while it's a small part of your economy and not a big part of your economy. so, you know, i think that's good. it's a small negative for chinese growth. it's not a huge negative, i don't think. >> finally, walter, apple is one of your largest holdings as we mentioned at the top of this

segment. you generally like companies that have relatively low valuations that return cash to shareholders and that show the promise of growth. i'm wondering what you make of headlines that apple is potentially adding a third supplier to meet iphone demand and that it's expecting 85 to 90 million new iowa caucuses by december 31st. does that move the needle for you? >> yeah, i think that apple is doing well and gaining share despite their high prices. i think people are looking at the total cost of ownership and the pleasure they get out of the ecosystem and the power of the ecosystem. we've just done a survey of users around the world of android devices and we're finding that 30% to 40% of them are thinking of shifting to apple and it's not because apple is less expensive. it's because it's a better experience and i think the total experience associated with apple is what's drawing people into that ecosystem. >> of course, china is a big

market for apple. we'll see if there are any effect there is when the company reports earnings but for now we appreciate your time this morning. >> thank you. >> walter price from allianz global. a major restructuring for its phone business. what is going on at microsoft and the company's way forward. plus, the sell-off in china could already be hurting apple shares down 2% although you see the turnaround in the middle of the day. close to the lowest level since may, gene munster gives us a closer look. keeping our eye on the markets as well, all major averages down 1%. dow down 183. "squawk alley" back in a moment. ♪ ♪ it took tim morehouse years to master the perfect lunge. but only one attempt to master depositing checks at chase atms.

technology designed for you. so you can easily master the way you bank. that reminds me... anyone have occasional constipation, diarrhea... ...gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against occasional digestive issues. with three types of good bacteria. live the regular life. phillips'. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom.

welcome back. joining us this morning nick bilton columnist of nuclear reactor nuclear reactor and jon steinberg ceo of the daily mail north america. good morning. first up microsoft planning another round of layoffs cutting up to 7800 jobs announcing it'll restructure its phone hardware business. the company says it will take a charge of about $7.6 billion as a result of that restructuring. and those job cuts are in addition to the nearly 18,000 layoffs that they announced about one year ago. shares of the company trading to the downside so far although they began the morning in the red. nick, when you write down more than the purchase of your phone company that you bought as faber said that's hard to do. >> yeah, i mean, you know, i think one of the problems is that the currency is kind of suffering from the

decision-making of the previous ceo and, you know, it's almost like microsoft overslept for the marathon of how to get into the phone business and now they're trying to figure out how to catch up. i don't know how they do it or restructure their phone business or how they get new users on the platform. you have android and apple and all these other companies in china are now competing with them. this is a definitely going to be a difficult sing that aing for a to figure out. >> always hard to compete at the midrange. that's the area. the m9 fell by the wayside. we've seen motorola take it on the chin. isn't this microsoft saying we'll play at the low end and have some devices at the high end for the people who are into window, midrange, forget about it. >> i was hoping they would get out of it. samsung haven't keen compete. their revenue noun 8% year over

year, blackberry had to go into android and the comments from the letter that nadella sent out. a stand-alone phone business to grow and create a windows ecosystem. i would hope he would say we're done with that. nobody wants windows os. is this political-speak? will he get out of the phone business. >> i don't think he is but the cost of being in a hardware a bit isn't what it used to be. microsoft is big enough to absorb that. he's not going to invest in it at the level that it would take to try to grow the midrange of the market because the party is pretty much over there. samsung is doing pretty well. not as well as they hoped. most is because of logistics and planning but samsung and apple are run ago way with the high end and increasing the midrange of the market. microsoft just wants to have a little toe in the water, a little bit in the game. >> nick, there are some segments of microsoft that are moving in the right direction. part of the reason why the stock is up this note from morgan

stanley upping the price target to 51 saying that the $20 billion estimate for cloud revenue could be conservative. that's good news, right? >> yeah, absolutely. i think that just to go back to what jon said part of the reason why i don't think they'll completely exit the market is because of the other products they have. if they're going to get into wearable computing and virtual reality and all these different things and cloud computing and continue to grow that business as they are in a very successful way, they also need a mobile platform to be able to do that and that's why i think that maybe it's going to be experimental. maybe there's some secret solution that satya has that we don't know about. the other aspects of the business, cloud, are intertwined with mobile in ways that i don't think they can walk away from. >> or maybe it's just a simple hedge. it's just as simple as that. nick, we've heard some positive things about windows 10. is that the prevailing view out west? >>ho did you hear that from, people at microsoft?

>> well, specifically it was kevin o'leary on this show yesterday who said he's tried it out on the set of "shark tank." have you heard anything like that. >> i have not really heard, you know, you don't really hear people wandering around san francisco awondering how great t is. that could change. a lot talk about how wonderful their mobile devices and how wonderful their wearable devices are. if they can use this windows 10 upgrade to try to transition people to these other segments then great but, you know, i don't necessarily think that it's going to drive people like, you know, windows '95 '98 did for the company. >> what's the point of having a toe in the mobile os business when it's a scale game? i think they should give up, move on to hollow lens having early success. i do believe vr will be a thing. why have a toehold in that when you have an infinitesimal share in the market. >> i don't think they're ready

to by up. maybe it's the money or the fact that they think they're going to go for the higher end market or something, maybe apple falters, there are a number of reasons i think that you don't get your completely pull your toe out of the game. i do think that it's not going to be successful, their mobile strategy and have to figure out something so that they can continue this ecosystem because that's what they've been talking about since day one. that's what ballmer talked about and satya talked about and they will have to continue to go for that like every other os has too. >> finally, guy, this morning shares of apple still lower today despite that news we got that the company is planning a record iphone run. some of that can be traced to kerrs about china where apple posted 29% of its revenue last quarter. sales of the apple watch are way down according to slice, sales of the watch down 90% since its opening week. the numbers say apple averaged about 200,000 watches sold a day

back in april. now selling fewer than 20,000 a day, jon, awe and i had this conversation every day. >> i don't know the numbers but do know when i stop by the fifth avenue apple store, here in midtown, the apple watch tables are often pretty much empty. the interest has definitely fallen off. my experience with the watch has been this feels very much like a beta product and beta might even be a little generous. certain things about this watch that are fundamental functions that ought to work do not work well. heart rate for me routinely will drop and cut in half during a workout for several minutes, that's really frustrating. you want the credit for the workout that you're doing. also walking directions in a city like new york, that's something you want a watch for so you don't have to pull out your phone on the streets. those don't work well at all. apple employees have admitted this to me whether they come to new york they're shocked at how bad this is. these are things they have to get right if people love it. >> highly authoritative slice

data, the steinberg data of random people i see around is lots of people like it other than kevin o'leary. they look at receipts and as someone who has comscore and neilson and quasi-auditing type things there's huge inaccuracy. this i've only sold a few million of these. oh, it's a terrible multibillion dollar business that's highly profitable. >> i'm not arguing about the data is correct. the traffic at a flagship store is not that encouraging. i get questions about how i like the watch and i tell them, you know what, it's flinchy in spots it shouldn'ting. >> nick, if at this point we're still judging it on buzz, give it a grade for us. >> 2, maybe 1 1/2. look, i definitely agree. >> out of 10? >> the apple watch -- out of 10. outside san francisco and new york city, i don't see anyone with that device. anyone. like traveling all across the

country i have literally not seen a single human being that is not in tech or media that has that device and yet i see everyone with iphones and ipads and other devices. i totally agree with jon fortt. this is not a finished product and when people ask me if i like the watch, i say, yeah, it's great. i can get my text messages an my calendar alerts but that's it. nothing beyond that that makes me want to actually convince someone else to go and buy it. when you ask about the iphone i will, i'll tell you the camera and great and when it comes to the watch if steve jobs were alive i don't think it would exist. >> oh, no, you didn't pull that. >> i did. >> he might have put this out too. >> i truly believe it. if you look at the ui with the watch, all these things there are things about it that literally just feel like someone was, oh, i forgot to finish that and i think that that is an example of why -- >> the overcomplication, some

say, of the apple product. >> hatching watch. i feel like hatching watch is coming. this is worse than the twitter book. >> here's one thing, i'll say one thing, if i -- jon, if i came up to you and forget that the apple watch existed and i showed you this with a samsung logo, you would believe it was from samsung. nothing definds it as a beautiful apple product. >> fair point. >> good stuff. we'll talk to you later on. really quickly before we go to break united airlines flights have resumed after a glitch that caused a worldwide ground stop earlier this morning. impacting 3500 flights an the world while the airline is working to get back to normal affected passengers can find a waiver at united.com. up next another volatile day for the markets. dow down triple digits down 190. at its low down 220 but volatility. european close especially with what's been happening in greece

always important for the rest of the trading day. we will have that for you and the impact on the markets here at home. when "squawk alley" returns.

if legalzoom has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here.

european close yesterday was the beginning of a big upside reversal for u.s. stocks. it is not happening today. simon is here with that. >> certainly relief in europe among analysts that by the end of the weekend we could have a clearer resolution of where we are. will they be in or out? alexis tsipras has filed this new three-year application to the bailout fund. that is the first formal process in what the creditors demanded he do last night. the question is, is he going to follow through with all the other demands? does he have the political will to do that? an open question. a lot of people are not encouraged by the performance of him in the european parliament this morning where he argued or pleaded for better, fairer, more

sustainable deal. he said he would deliver specific proposals on those reforms tomorrow as requested. but he said the decision on raising taxes or cutting pensions is a government sovereign right. meantime, in the country that is probably most fearful of contagion, italy, the bank of italy said that the greek crisis does pose's serious impact to markets if the euro is believed reversible and that they stood ready to use all the tools to mitigate impact that it would involve coordinated action from the european union institutions and national authorities. he also said the stability of the whole system could not be put in doubt by single country. as we await the weekend let me show you in case you're not aware of what timetable the creditors have put greece on. tomorrow, or possibly friday/monday -- friday morning they have to submit a comprehensive plan. they then have to negotiate a deal with the institutions to pass a vote through parliament in the near future on raising

taxes, reducing mention, tougher demands we think on the table at the moment. a major sticking point. can he get it past his own party. will it be a vote of national unity then you have the eurozone meeting saturday and the full eu leaders meeting on sunday. if the peoples are acceptable they'll normally open negotiations at the beginning of next week with a bridging lean for the ecb payment on the 209. if there is no deal that is acceptable, the expectation is that that summit on sunday will discuss the legal implications of getting them out or letting them go and importantly the quid pro quo of humanitarian aid moving in. yes, that is on the table because it's feared that on monday if there isn't a deal the ecb will let the greek banks go effectively putting them into some form of administration. that's up to the greek what is they do and also important sunday a full meeting of the european union not just the eurozone, ominous because they want collegiate action but there is a belief if greece isn't in the eurozone it will leave the

european union, as well. a lot happening? >> another big weekend in europe. thank you, cylen. meanwhile, across the pond american optimism about stocks cooling off in the second quarter but when sub groups outlook is rosier than ever. steve liesman has exclusive results from cnbc's all america economic survey. steve. >> yeah, thanks, jon. it is all america. 800 americans across the country but we also look at some of the subgroups in there like the wealthy versus those with less money. let me show you what we came up with for ask people is it a good time to invest in stocks. for the financial elite those with $100,000 or more or $50,000 or more in the stock market, they're nearing all-time highs here. but look at this blue line. this is all adults average americans, this is the clearest evidence yet of what we've been talking about, since the financial crisis. which is that average americans have not partaken in the stock market boom here. let's look at how this upper green line has worked with the

stock market. this is the s&p. pretty good coincident indicator but you can see it fell off a little bit while the market tended to go up and flat and now optimism rising. it could be that the best indication here is a level over 00% that half of the financial elite are optimistic about stocks could have an indication of a rising market. and i want to show you this thing because this is throughout our poll that the financial elite are more optimistic. this is on the current state of the economy. and the change from the last survey. big boost of improvement in optimism. also on the outlook for the economy. again those with $30,000 or less in income, their optimism dlooined. those with more went up. tracking in question to all american, what's the best investment right now? and watch what happened. 13, 14, 15, to real estate it's gone up. stocks a little bit higher down from the prior -- right in 0%, a fifth of americans saying stocks

are the best investment but look what has happened to gold followed the price. it's come way off where it was and had been our persistent leader throughout the early parts of cite cyst now it is off and running third. read all point results of the all-american economic survey on cnbc.com. >> some great charts. >> thanks. >> when we return, still watching the markets, dow is down 175. not too far from session lows. dow's session low was 220. "squawk alley" is back in a minute. choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, don't miss the final days of the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store. don't miss the final days of the lowest prices of the season. save $300 to $700 on selected mattress sets. ends sunday!

know better sleep with sleep number.

welcome back. while we were in commercial break, traders here at nyse in really one moment just said, whoa, as a group and started running to various parts of their posts. you can see these screens that are on the posts all armdz the floor. now saying no quotation for just about every stock that we can see from post 9 where we are. i've never seen this happen. we talked briefly to art cashin a moment ago who said there appears to be some kind of system malfunction. he does not have enough information yet whether this is internal or external. it's hard to say. this is a rare occurrence and does not bode well. >> a lot of activity here on the floor following what you described as a big whoa. it was a collective gasp really across the board by the brokers here on the floor. they are now trying to figure

out exactly what happened but you can see what are normally black backgrounds showing the piece and the current trade for these names are now white or like an olive color. >> art cashin has made his way to the floor. i can't imagine you have a whole lot light to shed on the subject. >> not really. we've had some technical malfunctions, some may be related to connectivity with other exchanges but i believe we're going to have a temporary pause certainly in a variety of stocks perhaps floorwide and trying to get things geared bark up. it's been a little bumpy day. technical problems before the close -- before the opening so -- >> if you're an investor at home and see this happening on the floor of the new york stock exchange and you're concerned what should you do if you're trading stocks at home? what is the impact on mom and pop at home? >> i would think this would not

cause a move in any particular direction so i would kind of wait it out and see what happens. if the market were in freefall and something happened then you might be concerned that your opportunity to do something would be denied you. but we're already down. we're relatively stable at minus 180. minus 190. and we were getting ready to see what happened after europe closed and then whatever this connectivity problem or whatever it was popped up and rather than get in a situation of mispricing or publishing wrong prices we're going to take a time-out. >> i think we are getting word from the nyse, if i'm hearing this right that there does appear to be a trading halt. training that i'm seeing the levels for the industrials change not by much, that doesn't make sense why individual names wouldn't -- >> other trading venues may continue to be open so if nasdaq

or archipelago or others are open and the prices of the dow components are changing that's what you're seeing reflected. >> the nature of the technical issue resolved that resulted in some orders being cancelled that were placed in affected names before the open, is there any situation where that technical issue would have led to what we're seeing now or was that completely resolved? >> well, i don't know enough to tell you that it was completely resolved but what happens with these situations is often you get a kind of residual result that you're all clear or get caught up to date and there's a little bit of a backlog that pops up somewhere and it tends to jam things up so i don't think any of us has quite enough information yet as i say, if i were sitting at home i would sit back and wait this out. that would change if there was some sudden news change but i don't see anything going on in the market now that would get me

nervous enough to run in and trade somewhere else. >> even coming on a week where volatility is extended, compared to recent history, 6% sell-off in shanghai overnight, you don't think any of these things are related? >> hopefully not. you know, there's always the conspiracy t hchltheorist that that's happening but when they come up we try to put patterns back into them. >> we'll keep our eye on that. obviously all the twitter is abuzz with jokes about this and united airlines but that's a different story. to bob pisani and see if he can add anything to it. >> post 5 and what you can see here, scotty, pull up on the screen. essentially the trading has been frozen here. look here, this is what you want to look for. normally there are quotes of all these stocks here, panels where the stocks trade. you see no quotation here.

so essential we're not getting any data coming in and there's no trading that's going on. come on here and i'll show you generically screens that the designate market makers use for various stocks they trade and here's bids and offers. normally they're moving because they're being placed on these stocks but right now everything is just sort of frozen. there's nothing happening because there's no orders coming in or coming out. now, what we're trying to figure out and i don't have the answer is exactly what's causing this glitch and apparently the nasdaq i understand may still be functioning fine. this may be a specific problem here right now. but essentially the floor has been frozen and everybody is just walking around over there. come over here for a moment here, scott. i'll show you the internal operations for the new york stock exchange. the guts of the technology department. it's right here. so this is part of the new building right here and you can

see the trading operations in the other room. this used to be called the garage but essentially this is the sort of tech nerve center for the new york stock exchange and what you can see here and come on in a little bit, scott. are officials who are essentially in charge of the tech operations trying to figure out exactly what's going on. i don't have an answer yet. i'm going to walk over and talk to some of the people over there. i see some of the heads of the technology department here trying to figure it out but that's what's going on right now and you can see this, again, scott, turn around, virtually all of the panels here that list the stocks, here's macy's, here's travelers, no quotation so we're essentially getting nothing in. you're not getting anything in either, right, mark? yeah, designated market makers what we used to call the specialists are standing around doing nothing because no data is coming in so they can't make bids, offers, they can't do any trading because there's nothing coming in. this is a tech issue and, again,

we're not sure exactly why it's happening, but there's not a single stock here that i can see that's going through on any kind of data at all. they should all be moving right now and even though we're getting some moves here on some of the indices that's because of trading that's going on i believe off of the nyse. and other exchanges. i think that's what you're seeing so let me go over here and talk to the tech officials here and see if i can get any update and come back to you just as soon as i get any more information. guys. >> thank you very much, bob. bob pisani giving us insight. art cashin, it's hard to make a market when you can't see the market. >> well, when you rely entirely on a system and there's a blockage in that system there's not enough data and, of course, you want to err on the side of making sure that things don't get worse. i mean, if you began trading and prices began to not react

properly and you would be publishing what would be the equivalent of erroneous data so better off taking your time and try to get things straightened up again and see how trading continues. >> there are viewers who are saying if i had a trade i submittedage order that i had submitted what, happens when it's in limbo and something like this takes place? does it get blanket canceled at the end of the day? does it depend on the nature of the glitch or does it get processed whenever the exchange re-opens? >> it ordinarily depends on the nature of this glitch but if it's in limbo that's exactly where it would sit and so you -- if you can't get the reaction, it's not always easy to cancel it. so when the system resumes, there's a high probability that it might be executed or there may be a brief period of time before they announce we're about to resume and it would

functionally be a period before the re-opening which then if the systems were working might allow toucan sell it to change your limit to do whatever. >> historical precedents for this. ever seen anything like this before. >> sure. you know, i'm doing this 50 years. >> believe me, i'm aware. >> yeah, no, you have these problems. the more dependent on a system you become, the higher the risk but, you know, we've had those problems way back in the old days when the biggest system coming knee the building was a telephone company. if you had a telephone outage they would cause a pause and say, wait a minute, we're not getting enough communication. when the only output before you guys came along was the ticker tape and that was not promulgating accurate information, you had to take a pause so i've seen marketwide pauses before. >> so you'd like to think we've maybe moved past ticker tape technology, yes. >> yes, but it's good to have for the parade on friday anyway.

>> i'm glad you can laugh about it or believe me, so, art, what should we expect when we do resume trading here at the nyse? any impact that investors would see as volume ramps back up based on what you've seen happen in the past? >> yeah, no, i would not think it would be anything pricewise dramatic, you know, hopefully there will be no major news event between now and the re-opening whenever that is. and hopefully there will be a little brief period where people can size up what's going on, find out the -- what's actually happening with any orders that are in limbo and get straightened out. so unless there is a news event in between, this time-out should not change the direction of the market or do anything else. >> for its part nasdaq has told us no trading issues and continues to trade. nyse listed stocks. so how would that work, art, in the face of this halt here? >> well, you know, those who

feel they needed immediate execution will try to avail themselves of nasdaq or any other venues that are open. i think a lot of other people -- unless you feel pressed and i don't want to denigrate nasdaq but they're trading nyse listed secures so they're not the primary market for that, so if we were up and trading nasdaq's securities, i would say the same thing about the nyse. people might be a little hesitant wondering whether the markets will be liquid enough and deep enough, certainly they're trading, but you don't have a market maker book necessarily right handy so i think the bigger the mutual funds and others will probably hold back waiting for a deeper market in which to trade rather than be disrupted by placing a 500,000 share order that would move a market that is somewhat thinner an normal.

>> if you're just joining us, by the way, huge wrench thrown no our market day. busy discussing china, greece, various headlines regarding the apple iphone when about 12 minutes ago or so a big whoa from the trading floor here and all stocks at the nyse were halted for trading. we're trying to find out more about what happens next. bob pisani is on the floor. you got anymore. >> we have a statement from the new york stock exchange and here is what it is. we're currently experiencing a technical issue we're working to resolve as quickly as possible. we will provide further updates as soon as we can. we're doing our utmost to provide a swift resolution to produce a swift resolution, communicate thoroughly and transparently and ensure a timely and orderly market re-open. no word on exactly when the re-open is going to happen. here you see sort of what you might call the tech nerve center here. this is the ramp that's in between the stock exchange, the main floor and what we used to

call the garage next door and you can see the officials gathered around trying to get the market back up. so i don't have any more on that but as you can see here, turn around. very simply on the floor here, these are the panels and these are the stocks that trade at all of the panels, macy's trades here, travelers trades here, goldman trades here, jpmorgan trades here and what you can look at here is absolutely nothing at all moving. there is no quotations coming in at all. that you can see down here, there may be some that are trading off of the exchange and once in a while you'll see a different last sale but everything is halted. essentially down here so we're still waiting for some word on when the market might open and what the cause of this glitch but it does appear to be a technology issue, not any particular issue from the outside. appears to be inside. again trying to get more information. as soon as i get the officials here to give us another statement, i'll be right back with you. guys, back to. >> you bob, thank you. just for the record the nyse

statement is the following "nyse market has temporarily suspended trading in all symbols. additional information will follow as soon as possible." you heard pisani talking about appearing to be an internal issue. without making any connection whatsoever it comes on a day after united airlines cited network connectivity issues in a worldwide ground stop that affected 3500 flights. that was lifted somewhere around 10:00 a.m. this morning. the faa, we talked to gordon about what that might have meant over there. no one is trying to draw a line between the two but do fall on the same day. can't get around ha. >> you can't and i'm sure as we said before the conspiracy theorists will be talking about hacking possibilities and a variety of other things, you know, could that have interfered so we really need to wait and get the details as to what, it

fact, caused this glitch. how extensive it was and hopefully we'll get back up and in a minute or two i may leave you and get a screwdriver and wrench. >> i was going to say. >> yep, the happy hour begins early today. >> begins early today. >> it could be. >> it does, though, art come at a time when our markets are increasingly electronic, bolstering retail sentiment about the way our markets operate has been harder and harder. with a would you say to the retail investor who is watching who has a trade in limbo right now? >> well, again, we're not seeing other trading venues open. you're not seeing massive price changes. you're not ostensibly at any greater risk. i'm sympathetic to the fact that should there be a news event, that would be difficult. but, you though, it's not just mom and pop at home. it is the guy who's running a $3 billion assets under management operation. this is the primary source of the market, and that's why i refer to it as a time-out.

i think what we've all agreed to do is stop so we don't get misinformation and cross our fingers that we don't see a price dislocation showing up. >> it's interesting, i'm thinking about sort of the marketing challenges the nyse has had over the years. every time there's an ipo, we talk about the added human element as an advantage on this floor. in this case, that's essentially been disabled, right? it's irrelevant because of what the traders need to see. >> well, it is. however, i would tell you that in particular situations, humans still trade stocks. the question is can we get the information out to you and others who need to report it and say, oh, the market has moved in this way or in that fashion. if you can't get that kind of input, then we're back in the 1840s. you know, it's trading almost like a private club in that case, which is not anything that you want. so for now, we'll stick with the electronic system and see if we

can get it up as quickly as possible. >> and we're getting a bit of a lessson in liquidity this week between what's happening with certain stocks being halted in china and just the glitch, completely different issue that we see happening here today. anything investors should take away from that? >> well, you know, i think with a we are worrying about, particularly in china, it's not so much that the chinese market are going down, and it has an implication for the chinese economy, but i worry that we were on the verge of reverting to something that we saw in the post-lehman era when people, in order to get liquidity, if you can't sell what you want to sell, you sell whatever you can sell. and i think some of the liquidation that we were seeing here over the past several days were either people in europe who couldn't raise money there, coming here to sell what they own, and the same thing out of

china. as i say, if you can't sell what you want to sell, you sell whatever you can including your grandmother's necklace. and that's what we may be seeing aspects of. >> another added wrinkle to all of this, just in the past few minutes, we had gotten word that "the wall street journal" website was down. in fact, that's what you get when you type in wsj.com. now, whether that's a function of investors going to their computers and looking to trade -- to look up a stock, or whether that's something else, that remains to be seen. >> absolutely. and that's how this stuff can spread to a degree. it's like people rushing to get out of a single door. and it becomes a problem. >> our bertha coombs saying from the nasdaq side, traders are saying everything is okay, even on arca. the on issue is if you have trades that were, in fact, routed to the floor. nasdaq says they are handling type "a," that would be nyse securities on their system

without a problem. she reminds us the nasdaq did have their own outage back in august of '13, and then an issue with their options trading system in january of this year. >> yeah. this is an odd error on the front of wsj.com. who knows what it's about. but that's not your usual 504 error that comes up when a site is down, saying "oops 504, something did not respond fast enough. that's all we know." just odd. >> our data team, for its part, saying that they are seeing trades coming through, whether it's on arca, on bats, direct edge, there are trading venues thatted to the nasdaq where trading is available. as carl just mentioned, bertha at the nasdaq reporting that traders are saying that it is working together. despite the fact that trades rather directly to the floor are halted. we have seen all stocks here at the nyse halted as of 11:32 a.m. just about 20 minutes ago.

so certainly a wrinkle in today's trading. bob businepisani is on the floo. bob, what do you know? >> reporter: i think that's a very important point. nyse -- in fact, all the other exchanges trade on everybody else's exchanges. so nyse listed stocks that, for example, are on nasdaq, are continuing to trade as well as on direct edge. so that's a very important distinguish, i'm talking about bats here. and you can see this because the s&p 500 is continuing to update. here's the spx up in the corner there. 2053.56. now 39. and that has continued to update because the stocks are continuing to trade on the other exchanges. so the s&p is able to update. of course, what makes everyone unhappy down here is the trading here, the people who trade down here aren't getting any of the benefits of that trade. so obviously, that's an issue, and they're still working on it. here you can still see them huddling, just trying to resolve what's going on. we still haven't got a clear

idea of exactly what has caused this glitch, whether it is some -- sometimes you get -- many times here, you get software updates that are occurred to the system. this occurs all the time on all of the exchanges. we have seen, in the past, that occasionally those updates, not only here, but on the other exchanges, have caused glitches as well. of course, one issue being raised here is whether there's a cybersecurity issue. we just don't know right now. and that's why i'm still standing here hovering on the edges where the officials are trying to sort this out, see if i can get more information. i'm going to try and get them over here to see if i can get an additional statement from them. you bring up a great point. trading continues on other exchanges. back to you. >> thank you so much, bob pisani on the floor. i know we'll be coming back to you often to talk about any updates that we have. of course, the nyse halting trading in all securities here on the floor at 11:32 a.m. eastern time. it has gsd thsaid that it will open orders.

so that is certainly a new development for those of you that have trades that are sitting in limbo at the time of this halt. we do not know exactly what caused it other than it is a technical glitch. we don't know how long it is expected to last. we will bring you updates as soon as we have them. of course, people are talking as well, carl, about "the wall street journal" website going down. we should note, i did just get an update, an e-mail update from "the wall street journal" about the nyse. it was an article being sent out. so there are still stories going up from "the wall street journal" despite the fact that as we reported earlier, the website and still is currently unavailable. >> it is a remarkable morning. if you're just joining us, once again, we've not had a single stock trade here at the nyse since 11:32 a.m. eastern time. the nyse saying they have temporarily suspended trading in all symbols. additional information will follow as soon as possible.

it is remarkable that one of the largest exchanges on wall street are actually in the world has not traded a single share for nearly 20 minutes. joining us on the phone this morning, john gordon is an historian who studies -- has studied the nyse. he joins us right now. john, can you put this into some historical context? how often? when does this happen? >> well, it has happened before when the computers have suddenly, you know, just missed the hay, like united airlines this morning. but it usually doesn't last long. in the old days before computers, they only closed down for financial reasons. >> and as we have been talking about the evolution of tech following as it relates to the nyse and all exchanges, in your view, how many problems has that caused in relation to the number of problems that it's solved? >> oh, it's certainly solved a

lot more problems than it has caused. this does not happen often. it has happened before. and usually for a short period of time. and so it doesn't cause any massive disruption. but again, computers are a great thing, even though they don't always work. >> i just want to update our viewers. john, apologies for the brief interruption. as we have reported throughout the morning on various technical issues affecting united airlines as well as the exchange, we are getting word from our west coast colleagues that thewallstreetjournal.com is working in the west coast. so that is an update for our viewers here. john, a question about historically, this is not the first time that this has happened to the nyse or another exchange, for that matter, but how long does it usually take to figure out the source of the problem and then rectify the problem? >> it's -- in the past, it's usually happened pretty quickly, within the hour. you know, they've just got to

get the nerds in there to figure out what's going on. you know, i don't remember it ever shutting down for more than, you know, a brief period of time. >> how brief? >> usually, like, 15 minutes, maybe an hour. but no more than that that i remember. >> john, there are always concerns that there are people out there who are trying to manipulate the market. in the past, when things like this have happened that are unusual in the trading day, indeed, stocks halting, is there any opportunity for that sort of thing that people should be looking out for or concerned about? >> not that i can think of. but then i don't have a criminal mind. but i don't -- you know, if there's no trading, i don't see how anybody can manipulate. >> it is noon on the east coast. and of course, this is normally the time we bring you "the half" with scott wapner back at hq. scott, obviously the action is down here at the ch