ent wrong and, you know what that code what that upgrade did last night. was it properly tested? who tested it? all the questions going to ask. >> kenny, we'll let you get back to it. really appreciate it. going, as we prepare to begin for trading to reopen down at the new york stock exchange taking place in ten minute's time. you're watching cnbc our live coverage of the halt in trading at the new york stock exchange that began at 11:32. one hour now to go into the close, sue, and our brian sullivan here, as well from headquarters keeping an eye on the levels of these markets which are still trading. the news we've had to digest and now five minutes to go until the first of this reopening. >> yes, and i believe i'm solo, kelly, in my anti-glitch patrol back in new jersey. to your point, we are certainly trading here. that's an important point to remember. tape "a," a part of the nasdaq where they trade new york stock exchange listed stocks, like

buying a ticket on american and hopping on united. the dow has come a little bit off the lows. down 239 points right now, the nasdaq is down 1.7%. so no problems at the nasdaq. and yet, the nasdaq is actually down about .4% more than the dow. now, of course the dow does trade nasdaq stocks as well. but the point is, it would seem that the data we're seeing that the declines are not based on this trading issue, outage, whatever you want to call it, right? may be more global macro. the benchmark ten-year treasury note yielding 2.2%. and that's actually a 2.5% move, guys which is not quite double that of the dow. so bonds are moving more obviously overnight in china. this is turning out to be a seminal day for the stock market. we had 1,400 major chinese companies suspended in trading. not for these reasons. many of them suspending their own shares because the decline.

and something i pointed out early this morning, guys, which is this china's stock market value declined in 30 days has been 15 times the dollar value of the entire greek economy. >> right. >> you know, brian -- >> one of the points. >> if they could -- >> i'm here for whoever wants me. >> you left us dumbfounded with the last statistic there. and the audio person too. >> one of the issues that art cashin brought up is the fact that s&p is going to make some changes to the s&p 500, which was scheduled to take place at the close. the question was whether or not the nyse would be able to get this part of the market open in time for the s&p to make some changes. s&p was undecided about whether they would do that implementation, or not. now they are on the wires as saying they will not delay the implementation of the -- >> they will not delay it? >> they will not delay it to the

s&p 500. it's scheduled to take place after the close of trading this evening. and they are going to go ahead with that. that was one of the issues that art said might be more difficult for the market to -- >> that almost sounds to me like they're assuming that trading, in fact, will resume because i would think that you need a closing price on the components. >> right. >> exactly. >> to close out the index and replace a component. >> yeah. >> there are a lot of assumptions built in yeah. >> that's the whole point of getting this market open so you can get it closed. >> exactly. >> you've got to believe that industry is on a conference call or they're talking to each other right now. what if the nyse cannot resume trading in the next ten minutes? can't resume trading today? what will be the close today? whose final print will be the official close? i'm sure that's on the mind of the industry. >> can we overstate it guys? i understand that everyone's going to want to minimize it. even the "wall street journal" is using the "g" word. this is the biggest technical outage in the new york stock

exchange's history. outside of any sort of external event. if you look at this and say 25% of daily trading volume in the capital markets from an equities perspective, i know much of that has gone the other way. the new york stock exchange as you know in particular filled with a lot of men and women, but a lot fewer than existed five years earlier. this is the last thing the nyse needed. a computer problem that began at 11:32 a.m. eastern time halted trading of securities on the floor. the stock exchange saying the tech issue is not the result of a cyber breach. bob pisani spoke with thomas farley in the past hour about the glitch. saying it expects to resume trading at 3:10 eastern, bill. and as we approach that things could -- and as we start to see trading resume it could get

dicey. >> the first test will be in 20 seconds. also here on the floor of the new york stock exchange the big board bought it some years ago. >> back up a little bit here. i'm on the post of stryker. specializes in amex stocks. and here is the american stock exchange stocks open here. and we're ready, 3:05. how are we looking, mark? are we opening? >> we're good to go. >> they're good to go. and we're waiting for it -- these are guys trading stocks here and they're telling me they're good to go. and we're waiting for the system to boot up, essentially. i don't see the thing lit. we're not up, right, mark? they are ready to go. the guys are here, this is a trading firm that specializes in amex stocks. all of these are amex stocks right here, and the system is

little bit ant climactic. some of them there are a few nyse stocks mixed in. if these are the ones i'm looking for. most of these are all -- com stock mining. it's -- i know this is a little strange. are we actually running? >> yeah. everything -- >> are we up? >> we're good yeah. >> it's a matter of order flow too, bob. >> we are moving here. i'm not seeing any -- the only reason i'm suspicious i'm not seeing prices refresh up on any of these here. >> are all the amex names up? are the amex names up? i'm not seeing any price changes here. that's what i'm sort of wondering about.

we are supposed to be up pand running here. and these should be up. and we should be seeing some movement in this panel here. and we're not seeing that so far. so let me just make some more inquiries and i'll get back to you. but 3:05 was supposed be the time we opened. >> three minutes before the new york stock exchange stocks will be reopened again. and, look, i don't want to put a knock on the amex stocks but i don't think they're as liquid as the new york stock exchange stocks. it's entirely possible the order flow coming into those stocks over at the american -- the old american stock exchange will not be nearly as large as the order flow coming into the new york stock exchange stocks. but we'll know in about 2 1/2 minutes here when things start to ramp up there to try to get this floor open again. >> the dow meantime down 225 points this hour. we've been discussing the impact the federal reserve minutes, speech from fed president john williams. both of those fed watchers were

saying leaned a little dovish. today, the ten-year interest rate falling a bit and we've had a risk off mentality across europe, across china. that's spreading here and that dovishness not doing much to bolster stocks this hour. >> and there was a headline that crossed just a few minutes ago in our bottom ticker about the greek banks. now, i know in today's trading session, greece has been pretty much off the radar. but they're going to keep the banks closed past sunday. now, sunday is the big eu summit. so there's still a lot of tension around greece that we should keep our eye on as we wait for all of these stocks on the nyse and the old american stock exchange. that is a background story to keep an eye on. >> that could account for some of the selling we've seen a little while ago. if you're just joining us and expecting to see "closing bell,"

you're getting it but an unusual version of it as we wait for the reopening of the new york stock exchange. the stock on the american stock exchange, i can see the board here. a few of them have opened. they were to open a few minutes ago. and looks like they are. and bob pisani, a minute before the new york stocks open. >> what threw me off a little bit, here many of the amex stocks the panel is not updating. however, here's mark, he trades a lot of the stocks. he is trading, the panel is up and it's running. so for sure amex is up and running. why the panel's not working, i don't know. all i care about at this point, we've got these stocks up and running. let's come over here. show you here some of the people who are standing around. we're trying to figure out if this is going to open at 3:10. this will be in 30 seconds. here's barclay's over here there's 3m walt disney there's dupont there's vox in the

corner. you can see, still no quotation up there. columbia pipeline. shake shack saying no quotation. we're waiting for things to open here. we've got nine seconds. let's see if we can pull this up here. we going to open? >> the bottom line is -- yeah. let's just go over here and see what's going on. are we opening? okay. wait a minute. and are we up? we're up. we getting trades? looks like we are up. we're getting quotes in at least. bids and offers are coming in. i haven't seen any -- >> i see some of the traders, some of the specialists i'm looking at over here bob. the computers are starting to hum right now. they're working them pretty hard. >> what i can see coming up here and we can't show you details on the panels but i could tell you i've seen bids and offers come in on some of the stocks. big names here exxon, shake shack are all up here. bids and offers coming in.

>> remember this is like opening a bunch of ipos all at once. >> exactly. >> here's shake shack. shake shack, we announced some trades done here. shake shack open 5% $12.82 at $51 and now $52. let's come over here and take a look at walt disney. still waiting for that one. there's dupont. we've got trading there. that's down 1.35%. 3m is also trading. that one i don't see i don't see any trades yet. but i -- again, everybody's looking. >> and as that's happening, bob, stocks are moving higher. now the dow's down 217 points. it only tells you how tough today's session has been. but we did hit the lows right when there was some doubt about whether we were going to get this exchange reopen in time. now with 50 minutes to go into the close as you're pointing to some of these blue chip names starting to trade again, you're seeing the dow hanging in there with a loss of about 209. >> and it looks to me like

evback up. i'm going to take a quick walk here. we have alcoa's trading. earnings coming out on alcoa there. that's down 4.8%. but that was down earlier in the morning. there's at&t, down 1%. pepsico, american express. pepsico, don't see any trades. i do see american express, bank of new york there's aetna, herbal life, that's down 4% right now. and i'm just looking around on the floor to see if anybody's standing around with orders that aren't filled. but looks okay here. we all right? everything running? yeah. he said orders are coming in. >> no orders. >> i think what they're still waiting for is more orders to come in. so, again, they're matching all bids and offers right now. remember, the market has been trading. it would be unreasonable to expect some explosion of orders

of pent-up demand coming in when you've had, remember the electronic arm of the nyse trading as well as nyse stocks trading away from the exchange. >> that's our bob pisani. thank you so much. keeping an eye as things are off to a slow start, but at least it is a start. and art cashin just pointed out to me this light opening may be a blessing as they do try and make sure. they want to crawl before they walk before they run. and they're crawling with this open now. so it's a good thing you don't have a rush of orders coming in. you have a trickle that's starting to build at this point. and as that happens, they can get make sure that the fixes that they put in place to try and solve whatever the glitch was this morning is fixed in actuality and that we can go without any more glitches before the close here. he is acknowledging that the order flow was not the strongest to begin with at 3:10 eastern time, but it is starting to pick

up pace now as people see that the market is open. >> and we know he's very busy but we'll try to get him back on so he can give us the play by play. back to bob pisani at this point. what do you know? >> the camera's getting some other shots. but the volume here has been pretty modest. so we were about 150 million shares changing hands on the floor of if new york stock exchange when trading was halted at roughly 11:30. and i'm looking at the board here. right now, 195 million shares changing hands. that's 45 million shares since it's opened. that's a fairly modest amount given the fact that the nyse floor has been closed for several hours. we're definitely getting trading. again, look, here's pepsico. it's up shake shack's up, aetna is here. and there's volume here. but, again, i think it's pretty much on the modest side right now. >> you know just from a gut point of view the buzz is back,

right? >> oh absolutely. absolutely. >> a buzz that we normally get this time of day. >> absolutely. >> i can tell you from that standpoint, there's trading going on. >> and the big thing is the market on close orders. there are people who start looking at this beginning as early as 2:00 to sort of divine exactly what the closing orders are going to look like. and there is a business down here around trading around market on closed orders and trading imbalances. >> what's your sense? what's your sense, bob, being on the floor? what are you hearing in the background from traders? how do they think it's going? >> oh. well, the open was fine. the open here was fine. it was even a cold open in that they simply just started trading. there was nobody putting in orders to buy or sell stocks they simply opened the market up. so the actual opening of the rkt market, i think, went smoothly. what they want to make sure of is getting the orders in on the close. and right now, that's going to be fine. i'll tell you the key thing,

3:50, they'll publish the order imbalances and give you a much clearer sense of the close. >> it could be an interesting close for a couple of other reasons, as well. let's not forget earnings season begins tonight. alcoa's numbers are due tonight. we need to get the market open because alcoa's coming out. you know, number two, if you're a company that has been waiting to maybe dump bad news under the radar out there into the market today, and i'm just going to give pr people a little advice might be the day to do it. because the nyse will be the story perhaps, rather than news coming out on the nyse. >> but brian sullivan we'll be watching for those. so just know that also. >> all night. >> so everybody knows, as well looking down through the dow what kind of day it's been putting this whole activity to the side. those are fractionally higher. meantime, a really tough session for the likes of caterpillar. down 2%. a lot of cyclical names, apple down about 2% today, american

express. so some of those cyclically sensitive names. when people try to put together what's happening it's probably going to go back to global growth concerns. just didn't help that in the meantime, the banner stock exchange just had a three, four-hour failure. >> let's not forget about china and the sectors that have been most impacted by what's going on over in china. take a look at the subsectors. it's down 2.5% today alone, and that's on top of huge losses in the past week or so because there is this notion that the chinese consumer is going to pull back because they were locked up in these stocks. they're not going to be buying phones and therefore chips aren't going to be in demand. we've got to take a look deeper beyond just you know the nyse has resumed trading and we're down you know 1% right now off session lows. deeper underneath these numbers, there's some real pockets of pain within this market as we head into the chinese open hours away from now.

>> you're right. and let's not forget crude is down at this hour. if the energy sector ends lower this week and looks like we will because already nearing the end of the day wednesday, it'll be ten straight weeks of the energy sector losses. so ten consecutive drops for energy, that has never happened in the history of our data going back to 1989. >> that's a key point. thank you. let's get out to peter costa on the floor of the exchange. your thoughts on what happened down here. >> well, a couple of thoughts. number one, i think that even though it may sound a little strange, i'd like to give a lot of credit to the employees of the nyse because it was a lot of work involved to get the market back up and running. they had to withdraw or pull out several hundred thousand orders. it did take a long time. it was done and it was done properly and the exchange it seems, you know, market seems to be running smoothly right now. >> are you confident in the

system? >> yes, i am. i make my living here. of course i'm confident in the system. >> the reason i'm asking, peter, 3 1/2 hour outage, we didn't hear a lot from the nyse for the majority of that outage. and i just want to see, bob give us an update on volume. and peter, you can answer that question after bob's done. >> well, let me show you something, sue, that's interesting. to my left volume volume on the top there, 197 million. that's the shares of trading that occur on the floor of the new york stock exchange. not outside but on the floor of the new york stock exchange. on a normal day at 3:20, that would be 500 to 600 million. obviously well below normal. what i want to point out is prior to the open it was less than 195 million. i want to clarify that. and now it's at 197 million. the point is that since we've opened we've only traded 2 million shares. that is a minuscule amount of

trading. almost irrelevant and a sign that trading has occurred all around us for several hours. the point, bill, is that is a tremendous need to get into the nyse right now because trading has been for a while. i think we're going to see volume, overall volume well below the normal levels. i'm going to make a check on that right now and get back to you. it's rather remarkable. >> that is bob, an unbelievable statistic. context, 2 million shares in 10 minutes. there have been block trades of single trades with 2 million shares. >> right. either this is a sign that people are not interested in trading for the rest of this session, or at the order flow still is not going through the stocks routed on the nyse. >> well we've got art cashin here as well. and you were saying that's a blessing, actually to have that kind of a trickle coming in initially to try the system out before you get going. >> yeah turned out to be a blessing. people were so concerned about

how tricky it was to hit the ground running that they held back on the order flow which then made it easier to do that you would have a huge amount of order flow, that would have been made the opening on a resume basis far more difficult. >> and we are starting to see as kenny told us the market on close orders. that means people are going to bring volume back like they usually do to get the closing prices? >> yeah i think between the rewaiting and the what they've experienced all day. you will see probably close to the ordinary flow. as i say, it's going to shuffle around. there was a slight tilt to the sell side in the early look. but we've still got -- >> that's a very early look. >> it is. >> yeah. >> things can change you don't really want to take a hard look at them until about 15 minutes before the close. >> is there any possibility we could go past 4:00 today, art? >> i don't believe so. unless there was some very large

problem at the end. i think as i said before what the exchange wanted to do was hit the ground seamlessly on the reopening and i don't want to jinx us, but so far, so good. now we need a close on time. >> points up the fact that to some degree a lot of trading that goes on involves some faith. you can hang a shingle out and say we're open for trading right now, but then you have to have people willing to trade. >> it'll be routed to 11 different venues instead of 12. that's to be expected, you know. why would you -- if you had something happen like this why would you want to risk it for

the first 15 20 minutes, let them see how well it's going to run. and when it's running properly and markets are back to relative, you know, normalcy then you reroute back to the nyse and you get your orders back in for the close. >> the decline that we see in the market today. we were wondering how much of it was linked to what's been happening here on the new york stock exchange. how much of it is linked to greece? we started out as a down day anyway. mostly linked to the plunge we saw in china. is that the overarching worry, or not? >> yeah the malfunction had very little to do with the direction of the market. greece is maybe 10%. and the rest sf the spillover from china. and again, for the viewers. >> what has happened in china

aside from the stock market is the influence they've had on commodities sending copper and iron ore and a variety of other things. much, much lower. that's required people to draw down liquidity elsewhere. if you can't sell what you want to sell you sell wherever you can. and that happened to be new york. and, again, we saw it in the u.s. markets today because of china and then the plunging commodity crisis. >> and the session up about three points, still a level of 19 below the level that most people would have to re-think some of their positioning for. probably as brian just noted, we thank them for saying over. how much has taken it on the chin here for oil. >> yes it's been very volatile. but crude has couple of things

going against it. internal technicals. a great deal of concern about whether there will be a deal with iran and will that free up millions of barrels in tankers at sea? and will that change things around? and then, of course if you worry about china, you worry about whether china slows as the great engine of demand. >> kenny is taking your job now. he came by in the order imbalance has flipped to the by side here. >> good. >> the dow still down 231 points. you're watching the s&p as all traders, we are just below 2050. are there levels you want to watch at this point with this interruption in trade today? are they still valid? you want to get to the close and then start over again tomorrow. >> well they're still valid. on any further weakness. you want to see them dry up

down around 2044 2045. that's where they had a theoretical double bottom yesterday that produced a good deal of that rally that we saw. so if we get weaker still and break down through that we've got a new thing coming. >> and art, now saying the routing to the new york stock exchange has resumed. so bob was talking and peter costa were talking about when all these ancillary exchanges would start to re-route to the new york stock exchange. i only so far see bats. no word on whether any of the others, but it's routing now. >> to peter's point, what also happens is not just the interface of the exchanges, but some membered firms with retail clients announced that even if the new york stock exchange reopened, they were not going to come back today. they would resume tomorrow. our volume will remain light. which turns out to be a

blessing. >> thank you so much. >> we're going to take a quick break. much more market coverage with the dow down 234 points when we come right back. your back. 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. ugh! heartburn! no one burns on my watch! try alka-seltzer heartburn reliefchews. they work fast and don't taste chalky. mmm...amazing. i have heartburn. alka-seltzer heartburn reliefchews. enjoy the relief.

[ male announcer ] legalzoom has helped start over 1 million businesses. 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. and what a day it has been down here at the new york stock exchange. welcome, everybody. kelly evans, bill griffith as we head into the close. the floor resuming trade after a computer glitch shut down 3 1/2 hours ago. the problem began at 11:32 a.m. eastern. trading volume on the floor light as trades are beginning to come in and pick up some steam. >> volume will be light as we've been discussing here. and there will be those brokages or trading mechanisms or mutual funds or whatever are diverting their trades elsewhere or going to wait until tomorrow as art cashin was pointing out. volume is well below where it would be this time of day, understandably so. about 205 million shares. but i will say, i mean, the headline risk in this market when it pertains to china and greece and iran and, you know all the other things we've been

keeping an eye on, it's understandable that we were going to get that selloff anyway. but beyond that we have not seen a very big price dislocation otherwise despite the fact the new york stock exchange was down for about half the day. >> we should note everybody, the dow is down 253 points again. while we weren't tracking the lows of the session during that critical time we were unclear if the exchange would reopen. we moved to as little as a loss of about 209 points b uh we are now accelerating back to the downside. what are you seeing on the floor? >> the important thing is we did open successfully the amex and new york stock exchange. but a real sign of how markets have moved quickly around the nyse is that volume 206 million shares. it was 195 million when trading was halted down here. and we opened, and we are now 20 minutes into the open. and only 10 million shares have changed hands down here on the floor of the new york stock exchange. that's a sign that most of the trading that had to get done

went outside the new york stock exchange. we're going to have a nice close. one thing i look at is i.c.e. which owns the new york stock exchange. that's right now down 2.3% down $5.19 to the downside. we're also going to be looking for, of course a possible cause of this. we don't have that. i'm wondering if you could put up an etf for me. hack hack, the cyber security etf. and traders suspected once the nyse came out and said there was no cyber attack going on and that was about noon eastern time h.a.c.k., the cyber security etf immediately rallied. because the community assumed this was some kind of attack. and when they figured out it wasn't, the market quietly went down again. so we saw immediate reactions.

as soon as we had the close, the problem, there was an assumption there might have been some kind of hack. h.a.c.k. rose very quickly after 11:45 eastern time. and when the nyse said there wasn't quietly went to the downside. we don't know the cause of this but the most likely explanation was some kind of upgrade glitch that occurred. this morning, we know there was connectivity issues at the open, the company nyse came out and said they had fixed it very quickly and 11:30 they halted trading and all nyse stocks. the two are likely connected. we've seen situations where they try to fix a coding error, but it causes another problem somewhere else. and this goes to the complexity of the systems. the sec will speak about this. there was a new regulation put forth specifically to address

these problems. specificallier radioing all of the exchanges to do regular technology upgrades and to test their systems. i think you're going to hear a lot more about that in the wake of this particular whatever you want to call it trading glitch or trading issue that the nyse had. there have been attempts to make sure that these kinds of glitches occur less and less frequently. but when you have these kind of trading. these kind of coding issues with millions and millions and millions of lines of code even the slightest thing can cause whole systems to go down. right now, we are still at 209 million shares, only 14 million shares more than when we started at 3:10 eastern time. >> all right. so we've gotten the market open again, but now the next order of business and maybe the more important one is getting the market close. >> yep. >> which is what everybody was more concerned about. is getting that new york stock exchange closing price for all of those stocks, bob. >> yeah. my feeling is that this is going to happen and it'll probably

happen relatively smoothly and on very, very light volume overall. it's true there's a little bit of rebalancing that has to go on, but it's fairly small. i wouldn't call it very significant at all. and what i want to keep an eye on at 3:50 they're going to put out the balances and we'll get a better sense. my sense is this is going to be a fairly quiet close. i think the major issue is making sure that the integrity of the system is fine. but as of now, i keep looking around i've been wandering around all the posts. now that it's actually up and running. we'll get the market on closed balances. that's the mocs as we call them and i'll get back to you with how big those are. >> bob pisani working the floor today. more than ever. joining us off the floor is matthew chessloc. people will say, look we got it back open. it functions smoothly. but the 3 1/2 hour outage? how concerned are you about that? >> well, the one thing that

concerns me is we have a selloff like we did today, i would expect volume to be consistent with that. i want to see more volume more of a panic for me to have a tell on what this market's doing. 250 points to the downside really doesn't mean much to me right now. there are so many factors out there. i'm not going to pin it on one thing and i'm not going to pin it on what happened here. >> what are your expectations for the close? >> we had the fed announcement. what are they going to do going forward? >> if you didn't hear it the minutes of their most recent meeting came out and it was interpreted to be rather dovish. and right away, bond prices went up. >> yeah, i think long-term, it's going to be played out. and that's going to be something we're going to watch. everyone's focusing now on earnings. it's not so much the second quarter earnings. what are the earnings going to be forecast going forward now that we've had the disaster in stocks in china, seen what greece has done. that's something you're going to have to focus on. not going to pay any attention at all. >> what happened with the

trading volume during that outage? what did you experience at that time? and what happened today? >> trading volume we see down here we're only a small fraction of what we're seeing overall. that's not going to be a factor. it'll come back, it'll have to come back. we do have a closing sksh the option market that takes place. >> and if case anybody's wondering, you're expected to close at 4:00 as usual. not going beyond that time. >> absolutely i think we close at 4:00 and it'll be a good test for this environment. >> we had one trader writing to his environment saying this shows me if there were a terrorist attack our systems would be able to handle it. that would have to be the case though, if it were a narrow one. focusing on one of the exchanges. many of them that exist today. we've seen with the outage that happened here earlier, that did affect many more markets. this narrow one, does that encourage you relative to what other vulnerabilities might have existed? >> as an investor and trader

yes. i can feel comfortable i can get out of position if i do have it or into position if the market is screaming higher. that is encouraging from that aspect. but if you make your living down here, you want to see it run seamlessly and things run perfectly. normally they do and we expect them to work perfectly going forward. >> we can all watch the tape again now that it's running. what do you expect from this market here? is this the kind of dip you'd want to be buying here in the short-term? i know you pointed to that low volume. let's face it, a lot of that has to do with what was going on or not going on here today. >> well if you're going to look somewhere you may think about buying, i'm contrarian. i'm thinking china. get a 32% drop over the last 12 days. start taking a real look at it. instead of saying you know market's down 250, it's like 1%. really not a factor. i'm not going to be buying with both hands. i'm going to look somewhere for real value. >> do you see rotation happening in this market? >> you're starting to see a little bit of it but it's not going to be distinguishable.

we have a summer slow season anyway. the volume doesn't affect me. i'd like to see one big move and one big push lower. >> sue herrera's with us. >> i've been listening. and i just. i'm very concerned about china, too. i think that is a story that a lot of people are underplaying. perhaps not us. but when we talk to other financial advisers, they point out the fact that china's government does try and keep control of everything. yet, a lot of retail investors in china got in at the top of that market. and i think people are underplaying the risk of social unrest in china because all of those investors who were encouraged to invest in the market by the chinese government got in at the top of the market. and are now some of them probably under water on those positions. >> and unable to get out of that position. >> unable to get out of that

position. >> and that's what's worrying. and there is a bit of a panic tone from the government. and by the product of them shutting down market and trading trading, that's not good. i mean that shows that where, as mr. cashin said a little bit earlier today, where are you going to go to get liquidity? and that's going to be here and other markets. the euro is probably somewhere untouchable until next week. you're going to come to the u.s. and trade the dollar. that's important. >> you go home the family says to you, what happened today? what do you tell them? >> we actually just got back from vacation so i'm sure they're probably catching up. >> welcome back. >> they have no idea. >> what a welcome back you got today. >> no idea what's going on which is probably a good thing. what happened down here probably isn't a factor. it's the bigger picture. >> thanks for being here. appreciate it. >> art cashin just stopped by. it's like old times again now. 20 minutes left in the trading session with the dow down 234 points. art was pointing out the bias if there is one into the close is slightly to the downside. and he's not even identifying the dollar amount yet of that

bias right now. but we are seeing a slight bias with the dow down 235 points. >> much more "closing bell" when we come back. why pause a spontaneous moment to take a pill? or stop to find a bathroom? cialis for daily use, is approved to treat both erectile dysfunction

and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence

you need. td ameritrade. you got this.

welcome back. 17 minutes left in what has been a remarkable trading day. here at the new york stock exchange in particular with that trading halt that began at 11:32 a.m. eastern time ended at around 3:10 p.m. eastern time after fixing whatever was the problem. they say they've identified the problem, kelly evans, but haven't told us what that problem was. we're using that generic term software glitch. >> sure. the reason why there was so much scrutiny on what caused this today because this morning, united had an outage. people are going to jump to conclusions linking these together. joining us for more david greenberg, and former nymex executive committee and board member. justin shack, gentlemen, welcome to you both. what do you make of it? >> thank you for your patience too. >> david what do you make of

this today? >> well there's so many questions that can be asked today. but the key question is coming from an exchange official and point of view where was the backup system. we were talking about after september 11th the one thing that every exchange agreed on and we were on a recovery of september 11th was that there would always be a backup system. if a terrorist attack happened downtown, we were blow away they didn't blow up after sandy. again, you don't need the trading floor. so where is the backup? where is the redundancy? where is all the money that they spent over the years to prevent something like this? whether it was a hack situation, whether it was just a glitch in their system there should have been a seamless switch to a new system, another system and if there was something with that. there's a switch to another one. it's inexcusable and it's quite

scary from a trader's point of view. putting my trader's hat on. there's nothing worse than not being able to get or out of your position. >> that raises the question of market structure, which today, and we heard him say it. he said yesterday i was against fragmentation and today i'm for it. >> yeah, and the thing to keep in mind about the nymex and futures versus the new york stock exchange and equities you're trading nymex products and by and large trading in one place. equities trading in 11 different exchanges. we heard a lot over the past 5 or 10 years about how bad that is. i think today is an example of a lot of benefits of that. i think they go beyond just the multiple points of failure. but certainly today, we see it's awful nice that we have lots of different places to trade these securities and not just one. >> and that's probably what gave new york stock exchange president's tom farley the ability to say to his crew. he told us this on the air a little while ago. he told his staff, take your time, let's figure out what the problem is and get it fixed. let's not rush to either a judgment or some haphazard fix.

>> absolutely. >> he knows that the trading can continue. >> no, the trading can continue. and, you know the question is when it did happen at nymex, we were the market. so it was a little bit different. and as a board member and as the staff, we also took our time made sure but the question goes back to why wasn't -- >> we are all slaves to technology at this point. when it goes down whether we have a backup system or not, there's going to be a dislocation of some sort. >> yeah and a lot of times people want to think it's somehow immune or shouldn't be subject to the same pressures that a united airlines or "wall street journal" or anybody else in any other industry would be. there's so much money at stake. and there's potentially systemic implications when things go wrong. but this stuff does happen from time to time. and the good thing as i said before, the u.s. equities shut these stocks down in a way they didn't shut the stocks down they shut nyse down.

hopefully we'll have a seamless close. >> everybody's attention will be on the exchange for the next 12 or so minutes. this is where we'll get the mutual fund volume comes back and gets those bids. what happens, though if after today do you think people would start to say we better diversify or not rely on that strategy? >> i'm not sure about that. there was some talk during the day that s&p had gone from just calculating indexes based on the primary market prices to using a consolidated feed. i don't know whether they've now gone back now that we're up and running. but that has been a practice for many, many years. there have been people that said it should be diversified to guard against situations like this, but i don't see anything like that happening in the immediate future. >> we've all talked about today about a possible hacking situation. and i don't think it's that. but it brings back what i've brought up for many years as an exchange official. do all these exchanges have the money, especially from the new york stock exchange and cme as a for profit company to put the money back into their cyber

security? and that is of great concern for me. because with a market you don't need to crash it, you don't need. all you need to do is take out a microsecond of information and have it disappear and people will lose faith in the markets. so this is just a reminder. of what can happen. and we need to make sure we take precautions for that. >> realistically, can anybody ever spend enough money to guarantee that they're going to protect themselves from a cyber attack? >> no, but realistically a for profit company might not be able to spend what they could. and if the u.s. government got behind the cme and nyse and other exchanges. if other companies go down it doesn't completely affect the world's economy. if this company gets hacked into or any of the other exchanges, it could create a world collapse of faith in the markets, and that will be worse than anything. >> gentlemen, we'll leave it there. thanks for sharing your expertise this afternoon. art cashin indicating we do have about 300 million to go to the

downside. we are getting those numbers through on what's an extremely light volume day here where trading's been open for 40 minutes. >> back out there on the floor somewhere is bob pisani. where are you? and what are you seeing? >> i wanted to respond to the guest. why wasn't there a backup plan? and the answer is there is. it's called the drp, disaster recovery plan. and every exchange every one of them has to file a disaster recovery plan with the sec and have one on file. so the question is -- in the old days there was a backup floor, as well. so why didn't they go to that? and tom farley when i talked to him didn't directly answer that question. but talking to people here involved in this this is not as easy as it sounds. i think the concern was given that they were trying to get to the close, if they go to the disaster recovery plan it involves different systems, as well. you have to switch over to different systems and the possibility that something could go wrong in that situation also increased. given the fact what they were trying to do was go to the close. i think a decision was made to

stay there. the second point is there is a bit of backup already. and that's the nyse's automated trading system or electronic trading system that continued to operate. let me just also say there was some question about why did that back up the software and do what they were doing yesterday? if there was a software glitch. and again, hearing what i was hearing that also creates separate problems. so the thing they decided for good or bad, decided to focus on was just getting the system back up and running and that was where they started. a point on the volume talked to the traders on the other desks, consolidated tape today is about 6 billion shares at 3:45 eastern time. now, on a good day, consolidated tape is everything. nyse nasdaq. on a good day at the close, on a really good day, you'll do about 8 billion shares close to what we did yesterday, 6 billion at 3:45 is a little bit below normal. but maybe a little higher than you would normally get. so let's just say i think that

the evidence is trading was a little bit lighter because the nyse primary floor was out, but still fairly heavy. and the thing i would point out, the s&p down 1.5% at one point during the day, that would bring on fairly heavy volume. i'm going to look at the close here, but i think we're having a little bit stronger volume. a little heavier volume than people anticipating. but i think it would have been heavier had the nyse been open the whole day. >> volumes now almost 240 million shares here at the new york stock exchange. it has picked up. we've done almost 50 million shares since we started trading again. >> now let's get to our guest, bring us into the close, david scranton ceo of sound income strategies. so sound income strategies, david, how do you feel about the new york stock exchange today? >> well the good news is that i think with all of the volatility going on between the greece news and the news in puerto rico and china and everything investors have probably welcomed a little break, three hours during the day when they didn't have to

worry about, you know the down tick, the red. >> you didn't get any panicked client calls? >> no, not at all. >> did anybody say i need to worry about this? >> people are not so frenetic when it comes to the exchanges. >> what are the mutual funds doing? they need the closing prices to help you figure out your net asset value of your funds at the close. this was important to get this open again. >> i agree with you. keep in mind again, i looked back, 25 years ago this would have been a big problem. for instance to your point, kelly, we didn't get any calls. we had absolutely no problems executing orders. it's just not. bottom line, business as usual. >> but i want to pursue this a little further. >> sure. >> i'm not talking about the

volume and the fact that you can trade elsewhere. we know that but i'm talking about that closing price. >> yeah. >> that is achieved here at the new york stock exchange. is that what you base your net asset values on? >> yes, i'm sure in a case like this there's plenty of other sources. >> you could piece this together. >> absolutely. i'm sure the services could do a good job. >> you brought up the noose flow and the interest yields. is that something you guys were anticipating? what happens now after dove-ish commentary from the fed? >> i think it was in january, right here on cnbc and i said i wouldn't be surprised if our 10-year ends up below 2%. i'm not concerned about the federal reserve being able to raise short-term rates. because at this point, our long-term rates being held down by what's going on in europe. if short-term rates are cause to raise, well we're to flatten out the yield curve, which is really terrible for the economy as you know because banks don't like to lend in a flat yield curve environment. i wouldn't be surprised if we

don't raise rates through 2015. >> what you're saying is that we're going to see lower yields as people flee europe and the problems there. >> yes. >> and come to the safer haven of our treasury securities here. it's not about fed policy per se right now. >> and fed policy is handcuffed to some degree by what happens with the markets and long-term interest rates. so in some ways the federal reserve's hands, i believe, are kind of tied short-term as much as they'd like to raise rates a little to have a little ammunition left in case of recession, they really can't. >> mark we are about to hearing from alcoa. it'll unofficially kick off earnings season for us. what are you expecting out of it? >> the earnings season looks like it should be okay. but, again, the big news today is china. will the chinese economy start to suffer? and that's something that would show up farther down in the earnings report in the third or fourth quarter. energy prices are obviously getting hit because of demand. i think we're going to quickly get through this earnings period

and start wondering what the big longer term -- 90% of the issue today is china, in my estimation estimation. a smaller piece is greece. and the trading issue on the nyse. >> yeah. >> the big issue going forward is there spillover from the market that doesn't come back to tus shores and impact our companies? >> thank you. >> thank you. >> appreciate it. >> we're going to get back down to our bob pisani as we head to the close. >> and i've been walking around on the floor talking about the potential close here. and what i hear is that it's looking fairly quiet and very orderly. and that's exactly what you want here. you actually, this is a kind of day where you want it nice and quiet and not too many orders and everything just kind of go as expected. i've mentioned earlier, we're having about 6 billion shares at 3:45 for all trading. that's new york stock exchange amex and the nasdaq. that is a decent day, a good day would be 8 billion shares which

is what we did yesterday, that's heavy volume. if we get towards 7 billion shares, all right, that's a fairly decent day. my opinion on this, you can't ever figure out what happens on this. but my opinion is that trading is on the heavier side but lighter than it would have been had the nyse been open all throughout the day. remember something, the s&p is down more than 1% nearly 1.5% towards the lows of the day. and whenever you have that happen, you're going to get a heavier than normal volume day. let's say on a typical day you do 6 billion, 6.5 billion shares on a day when it's really busy you're going to do 8 billion. somewhere in between that today and i think much of that is due to the fact the market was down and, i think it would have been a little heavier had we not had the s&p 500 -- excuse me the nyse closed for a good part of the trading day. right now, it's 357:57, look at the volume of 257 million shares and that's the volume on the floor on a normal day, that will

be 600 million to 700 million. we did half of the normal volume at nyse. i think obviously much of that went away. and i would say that the market while the nyse floor was closed was fairly orderly throughout the day. we did see an uptick in volatile volatility a little bit. there was no sense of panic. and down here, there was a certain -- i can assure you a sense of frustration. no one wants to see their business suddenly move around them. all of the argument about the fragmented markets, and it is a problem and issue technologically technologically. here it worked in favor of the overall flow of the stock market. everything just went right around the nyse. and i would point out had this problem occurred at the nasdaq it would have flowed right around the nasdaq and trading -- and nasdaq stocks also occur here on the new york stock exchange. so the fact that the market has been fragmented in this particular case worked in favor of it. a couple of questions the nyse's going to need to answer.

why didn't they go to the backup systems to the disaster recovery plan number one? and twaktly what was the cause of the problem? they still have not said for sure. but seems clear there was some kind of glitch or whatever word you want to call it around a software update, possibly, that occurred either last night or this morning. we do know there was connectivity issues at the open. and there was some kind of problem with connecting to their orders and their customers. they claimed or said it was fixed very quickly and then shortly thereafter, at 11:32 a.m. eastern time it was halted for trading in all stocks. that, my experience tells me suggests there's a connection between those two. they made an attempt to fix the problem, it was a coding problem, likely, and in attempting to fix that problem caused another problem. and we have seen this happen numerous times. so this is not some kind of wild guess or expression of fancy imagination.

there's not a lot of other obvious explanations. here we are the close with the dow jones industrial average down 263 points at the close. nyse volume close to 300 million shares. let's go to the "closing bell" with kelly evans. welcome to our special coverage here on cnbc of the outage on wall street. trading coming to a close after being halted here for more than 3 hours today. here's how we're finishing up the session which saw quite a bit of volatility and the volume here only returning really on the close. the dow going out with a decline of 259 points. that is a decline of about 1.5% with a cyclical part of the market hurt the most. the s&p down 35 and the nasdaq down 85 points. >> a lot of selling o inging on the close. we were holding steady for quite some time. especially after we opened at 3:10 eastern. and a lot of that selling came

in in the last minute. the nasdaq down 1.75%, 87-point drop. we haven't shown you any other index, but even with oil prices down today, the transportation stocks were down sharply today. that continues a trend that's been going on for a while now, as well. >> and joining us right now for more michael santoli and our own sue herrera. first to you, mike 3 1/2-hour outage today what have we learned? >> what's your lead? >> it didn't help. okay. it always seems to happen on days we're leaning down anyway. doesn't it? so i don't really feel as if there was a panic response. it didn't feel like a stampede. but it was a slow steady build of pressure on the sell side the whole time. and i think the halt was just one element of it. one more confusing thing. and i don't want to make too much about this kind of global theme we're seeing here but it makes people uncomfortable when you have massive number of stocks halted in china, atms running out of cash in greece. feels like this globalized

financial system isn't quite working right. >> it was disorienting to a great degree. we were focusing on what was important. continued sharp decline in china. this ultimatum being given to greece to come up with something before sunday and all of these important things going on. and then suddenly we can't trade on the new york stock exchange. >> i think when you dial back the s&p 500 has been in this area for a while. it's been making the low in this 2040s to 2050s area. we're back to where we were with the greek no vote two sundays ago. >> i do think, mike people were able to trade. not here. >> not at all. >> they were able to trade. and i think that made a huge difference in -- first of all, when the re-open came. but also because people thought, okay i do have some place to trade. whereas if you're in china you don't have any place to trade given what's going on. i think that does reassure people about the liquidity of our market versus some of the other aspects of what's going on

around the world. >> i'm totally not persuaded that we're down any more than we otherwise would have been. absolutely. the redundancy of the system. we complain about the fragmentation. >> it helped. it really helped. much to the chagrin of some of the traders down here who have been lamenting it. maybe we don't need 60 exchanges. but it was nice to have five or six. >> here's a look at where the volume did go today. the nasdaq was a big beneficiary. new york stock exchange less than 4% today. again, had some parts that weren't still trading. by the way, that's part of it, 13% of the volume. took 9%, up from 6.5% average lately. this was resilient, mike in some sense. the new york stock exchange, those backup systems should have been there. >> that's the issue. it's much more about what it means. how fast you can kind of bounce back from these relatively routine hang-ups on the

technical side. so obviously, that's something that's really not an investor problem as much as a system problem. >> but we remember also there was a glitch for united airlines today and their reservation system which halted all flights for a time. there was the "wall street journal" website's went down completely for a time. and i'm struck by how quickly we were trying to find a connection, perhaps understandably so. but how it speaks to our fears and our skittishness about how hacking in general and that next moment, where we know it's going to happen again. and was this that moment? >> this awareness that we're vulnerable in various places is very near below the surface, obviously. doesn't take much more people to start seeing patterns where they probably don't exist. >> by the way, we were quick to connect the dots this morning. everybody from the white house homeland security secretary speaking on this saying they didn't see the issues as being connected. nevertheless we certainly have

at lot more questions than answers. >> absolutely. >> as to why it all happened -- >> on the same day within hours of each other. i think that certainly adds to it. and i think to bill's point, we are just all so much more aware right now. of the risks of technology. i mean technology is so integrated into our lives every day and helps us in numerable ways. however, makes us vulnerable. and i think we saw that today. they did get the close done. they got the open and then they got the close, which was what they had to do. and they did it. we'll see how tomorrow morning goes. but the important part was to be able to open the market in a balanced way. they did. and they closed it as well. and that was their job. >> and just a friendly reminder that we are waiting for alcoa's earnings. so the earnings parade will begin. >> momentarily here. >> any moment now. we'll get those numbers and we'll be talking to klaus

kleinfeld. >> in fact -- >> before that we bring in jim cramer of "mad money" on cnbc. we wanted to bring you in jim, and i'm glad you had the time to talk about what happened today and what you make of this glitch that caused a 3 1/2-hour outage of the new york stock exchange. >> a lot of machines in action cables in play computer programs. i've got to tell you, bill the one thing i really like is i like that tom farley did come out, said it was a bad day, things went wrong, can't really quantify it yet. i find that these computers are so complicated that it is almost impossible to actually just quantify what went wrong until you've done a thorough diagnostic. i believe in farley, the stock exchange. i think the best thing of all is that we have competition for order flow. competition for order flow made it so that unless -- we might not even have known about this if our -- if our organization were located somewhere else. it just seemed like things were down but it went very smoothly.

i'm proud of the way the system worked and i'm glad we have competition. >> jim, i wonder if this had happened before michael lewis came out with his book "flash boys" how different the discussion around that might have been. >> i can tell you, we all recognize now the true-- from one company. i think that the notion of redundancy is built by competition, and i also have to tell you that i'm surprised the market wasn't down more. i felt that china's awful. i'm gla glad to see that europe bounced a little bit. china should be down at least at the opening. and if we get the same reaction as we did last night, people will understand that's why we were down 260. this is a china market right now, not a europe market. >> all right, jim, stay right there. on that very point, alcoa out with quarterly results. >> that's right. so alcoa out 19 cents adjusted earnings per share for the second quarter. that was 3 cents shy of

estimates. the street had been looking for 22 cents a share. revenue better than expected $5.9 billion, the street looking for $5.81 billion. citing slower than reported economic growth. also saying it continues to project growth. given the fact we've seen aluminum prices come off this year all that weakness so far this year worth noting their upstream business the actual production businesses better than expected. the profits better than expected according to the estimates on fact set. taking a look at shares of alcoa, they're up about .5%. a miss on earnings but beat on revenue. >> straight to the man behind these numbers now, an exclusive interview along with our own jim cramer. i'm looking here and i'm going to begin here because of what's happened in the markets over the last couple of sessions with china. you know, you guys beat on the top line, the shares look like

they're responding well after hours. all that said you now see a decline this year of 4% to 6% on slower growth in brazil and china. how bad is demand there? >> well let's first talk about what we have here as an underlying performance. this is a strong quarter, 16% profit growth year-on-year. we overperformed on our value add businesses, our engineer products and solution business had the best ever quarter in profitability. nice profitable growth. the integration of our acquisitions is going very well on track. and then you look at the commodity business. you said earlier, you know, the commodity business faced a lot of head winds. performed the best first half since 2007. and showed real resilience. metal prices have dropped 22% over the course of this year. this is good, and then when you look at productivity, very very good. and when you look at cash excellent.

you know, and you put all this together basically all of this has been done by the many alcoas day in and day out. this is what counts for us. >> absolutely. and we've spoken about this transformation. and you've been applauded for it. which is why i'm wondering. for all of us trying to figure out the situation on the ground in china. we've had somebody say it's 80%, 90% of this market. jim was just saying how important it was a china-driven market. from that point of view what can you tell us? is that economy slowing materially? and how does that affect your business? >> well china is going from a real high-growth economy to a medium-high growth economy. the leadership is taking actions around this. and i think we're seeing some of this happening. but at the same time honestly for alcoa, the most important thing is we have to do the things that we control. i cannot control what china is doing, but i can control what we

are doing. around super attractive growth markets. from aerospace automotive to trucks and traders and gas turbines. and at the same time we've been bringing the cost curve down for our commodities business. and that's the reason why you see a really solid performance, really strong performance in this quarter. that's what counts for all the alcoas particularly in this volatile world over the last weeks. >> gymjim cramer here, how are you? >> hello, jim, hi. >> july 21st, we get the shareholder vote for rti. i believe, but you can correct me the amount of stock you're offering for rti is set up an arbitrage that really crushed your company because the earnings are actually pretty good. do you think that the closing of this company is going to cause a wholesale retransformation of the way analysts think about your stock? because right now, you're viewed as a proxy for aluminum. on july 22nd, what will alcoa

look like? >> well, i mean july 22nd actually, the vote the shareholder vote that you're referring to is going to be on july 21st. and we've basically been saying we close by the end of july assuming all this goes well. we have the regulatory approvals and plays for the closure. but we have to see what we've done in the last years. this is just one stone in all of the things. the first acquisition that doubled the content in jet engines. very very important, to create more values for our customers. the organic growth that we've done in aerospace, the organic growth in automotive. the organic growth also in industrial gas turbines. that's a lot going on there. and the company that we are creating is a real power house when it comes to lightweight multimaterials innovation. that's what we are creating there. at the same time we have a

commodity business that just has to -- as we bring down the cost curve, doesn't matter what's going on in the world. >> are there still more that can be closed? can you still take alcoa further down the cost curve? >> absolutely. absolutely. and you've seen it again this quarter. you know, we've taken. we've taken more capacity down in brazil. we've actually closed, entirely. we've announced the permanent closure in smelter. the closure of a power plant including the mine there. we've announced the further curtailment in the refinery. and there's more to come. and there's a positive thing we've been able to sign new contracts that bring us down on the cost curve creating and getting energy that's cheaper.

we can do a lot of that. at the same time, the thing that gets us equally excited if not more is the growth we are creating in really nicely growing markets like the aerospace market like the automotive market. i've come back three weeks ago from the show. and the customers love it. they come to us when they want to talk about aerospace structures or aerospace jet engines. when you look after this has gotten more order intake this year than they had last year. it's a really nice growing market. and we contribute in there that create a lot of value for our customers that are in the sweet spots. >> how far does the enthusiasm extend to the u.s.? do you see wages there? do you see other kinds of

industries kicking into gear we've been waiting on since the crisis? >> well, that's a tough one. i think that in the end, it all comes down to what i said before. we can crack our head over what's going to happen here what's going to happen there. i know there's a lot of financial industries that are interested in this. we ask the real economy players. i mean we have other things that we work on. we believe if we can get the product out that creates material that is light erer and stronger, we will create value for our customers. and that will drive us in whatever environment we have there. and we're doing it in each one of the markets. that's what we're cracking our head on. and we have to stay focused on those things. as i said this world has enough

potential to defocus you on the things that truly create value for our company. and we have to make sure everybody stays on that course. >> we know it here, klaus. thank you so much. great to see you this afternoon. that's the ceo of alcoa. shares up after hours on those earnings, jim. you'll have much more coverage on "mad money" tonight. more with klaus on "mad money" at 6:00 p.m. don't miss a moment of that and appreciate you weighing in this afternoon. our special coverage of the new york stock exchange outage will continue in a moment and we'll speak again to tom farley. >> cnbc, first in business worldwide.

verizon say neversettle. t-mobile agrees. never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days you'll love it, or we'll pay for you to go back.

around mid-morning, started to see some concerns about the way trading was occurring. customers weren't getting all the messages back that you would otherwise expect. we made the decision i made the decision consistent with our rules and working with our counsel and regulatory arms obviously, to suspend trading here on the nyse. we wanted to make sure that nyse stocks wouldn't be negatively impacted. >> that was tom farley at about 2:00 eastern time.

tom farley will be back with us here. and we'll do a little recap with him and see if we can figure out what exactly happened. that'll be in a little while here. >> and let's ask bob pisani first, though. what did you find? >> what exactly happened. so here's a brief time line. at the open there was what was described as some connectivity issues. and what that means is the nyse had brief problems communicating with customers about the orders. so remember there's massive amounts of data. see these pipes up there? those are data pipes that go on to the floor to communicate with the floor and the outside world what the prices are, what orders to buy and sell are bids and massive amount of data keep coming in and out. the nyse has these engines. gateway engines that are out there that make sure this data is aggregated. and then there's matching agents to make sure orders to buy and

sell for everybody's stock match up and that you get that information out to the outside world. it's a big job. if there is a trading, if there is some kind of glitch in the code and they're doing an upgrade to the system which is quite likely what happened that could be a problem. the nyse very quickly said they solved it and we didn't pay that much attention to it because it didn't appear to be negatively affecting trading. then they announced all trading has been halted. it is very likely there's a connection between these two issues. it's very likely that this big problem was probably a coding issue. they were probably doing upgrades to the systems. when they saw connectivity issues, as they saw issues connecting with their customers at the open, they fixed it. that caused a cascading series of problems. the reason i'm saying this is that we have seen this happen before. this isn't the first time something like this has happened. this is the most serious example of this. but it isn't the first time.

maybe, tom, i'm hopeful tom can give us update and confirm that's exactly what happened today. the other thing i'd like to know a little bit is sec passed a new series of regulations, just recently requiring all the exchanges to regularly test and update their technology to avoid these kinds of problems. we all know the technology is complicated. we all know all the exchanges occasionally have issues. and the s.e.c.'s going to ask questions about whether they're going to be updating the systems in compliance with that reg. >> and that will be coming up within the hour here. thank you very much. let's move from market logistics to price action shall we? we have with us chief technical strategist from btig to tell us what she sees. and cnbc market analyst from securities has joined us now. after one of the quickest

trading days you've had in a while. 50 minutes. >> that's about it. we want to get your impressions on that a little bit here. first of all, our markets, i'm dying to hear your thoughts on china, as well. our markets, we've been stuck in a trading range for a while here since early march. and we're showing signs of wear and tear to the downside. do you see us breaking support? >> obviously the market is in pullback mode. and testing an important level. but it still does just look like a pullback not the start of something worse. and i say that because we have do have widespread short-term oversold conditions on this move that doesn't happen all that often. and also, the market's internal measures, things like breadth and leadership and sentiment are blowing up right now. meaning that sentiment is very bearish. and that's the stuff of market lows. >> so an event just like we saw today in terms of the trade activity being halted. >> it's the events that matters.

today was mostly an inside day for most stocks being at the range was encompassed by the previous days. it was very much a muted reaction to that news. there's plenty of things to worry about right now, and that's creating that negative sentiment. of course, it's much worse in china than it is here. and that brings us to the topic. >> let's do that. i mean, we've seen a tremendous decline of more than what 30% in the last three weeks in the chinese? the shanghai market, specifically, do you see any signs of a bottom there yet? >> i do. actually. the conditions have returned there, of course. but also despite the magnitude of that correction the markets are still very much in a long-term uptrend based on where we have been before. so that uptrend that preceded the correction was very sharp. now we're getting countertrend signals. certainly, i would like for momentum to improve in the weeks

ahead. >> have you caught your breath? >> yeah one quick thing, in my note this morning, i made that exact point. a 30% pullback is nothing for people to get nervous about. then of course you're upset. if you've been in for eight months ten months or 12 months, you're not looking at major losses, you're not looking at a panic, right? that point, i think, needs to be made. ex-amount of stocks there. in other names you could sell hong kong, japan and the rest of asia, which is kind of creating more of that nervousness. i think that is a little bit -- agree with you, a little bit overdone. >> if you look at the composite, it's testing the 200-day moving average after a significant move, you can compare the two pullbacks. >> right. >> i wonder one of the criticisms of this market before the s&p itself really started to

weaken was that underlying a lot of stocks were underperforming, it was a narrow market. now that we've gotten through that and a lot of stocks as you say were oversold what does that tell you in terms of the overall market can perform? in other words, did we do a lot of the selling before it registered with the s&p 500? >> well i think that widespread oversold condition is telling. it's a gauge of a market breath or participation. the fact that a lot of stocks have participated in the pullback is actually a bullish development in my work. it's a little bit counterintuitive there or contrarian by signal if you will. now what we need for confirmation that we're ready to resume the uptrend is that improved short-term momentum. i'd like to see the s&p futures above 2,082. certainly reason enough to start adding exposure again. >> transports. dow theory. you watch the industrials and the transports, they've been very weak here recently. >> that's right. >> that doesn't worry you? >> well a lot of things worry me, of course.

it's really not to see confirmation on the downside of the transports and industrials. it's only when you're seeing a reversal in trend. to me it's not a worry from a dow theory perspective, but those names are very oversold. even united airlines right down on some important support on the chart. >> very good. always good to see you. >> thanks. >> chief technical strategist joining us here at post 9:00 today. our special coverage of this trading halt continues. >> coming up tom farley and former sec commissioner laura unger. stay with us.

stocks halted at the new york stock exchange for three hours today. what happened? >> joining us now is president tom farley. we are pleased you could take the time to come over and talk to us. have you gotten your arms around this yet? can you tell us what happened? what was this technical glitch? >> yeah, we have. first, i'll just mention. we take our role here at the center of the capital markets seriously. i think it was underscored today. we opened very well. the stock opened this rng mo. but shortly thereafter we started seeing anomalies. customers weren't receiving the messages they usually receive. and part of taking our roles so seriously, we need to have markets that are 100% at all times. i made the decision working with

regulation and our counsel's office to suspend trading. there's a hippocratic oath of do no harm. now we were in the open state, new york stock exchange listed stocks continued to trade at other markets and i wanted the focus to be on finding what was wrong, fixing it the right plan in place, mobilizing our rapid response team getting up and running and being there for the close. every day's important with respect the close. >> why did it take so long to get up and running, tom? >> the most important thing is to get it right. and so i was as you can imagine, putting pressure on the team to identify the root and put in place plans, but not just a single plan contingency plans to bring it back up but to make 100% certain when we did so. it's our single biggest trade of the day. most of the market relies on our closing auction, closing prices. the open and the close combined represent about 20% of the volume and the closing trade represents about 5% of the

volume on an ordinary day. and i needed to be confident when we brought the market up we would be there for the close in an ordinary way. we had a smooth close, it's 150 million shares, slightly above average. i appreciate greatly the customers came right back and had trust and confidence in us that once we were up and running that would go off without a hitch. >> you had a software update last night overnight. did that contribute to this? cause it? >> so i spent most of my day talking to customers. i had three industry calls with customers that were organized and speaking to regulators the sec, chair white and working with our internal team. i can't say with precision exactly what drove it. there was a configuration error in our system. that required fixing. whether that -- whether or not that came about as a result of an update, it's premature. we will do a full review i suspect my colleagues already know frankly, but i don't want to say categorically. >> can you rule out it was an external issue? that's the one thing given the

other events of the day that people want most clarity on. >> so we found what was wrong and we fixed what was wrong, and we have no evidence whatsoever to suspect that it was external. in addition, we are in near constant communication with many agencies, security agencies with respect to security, cyber, physical and otherwise. and, again, we have no reason to suspect this was external. >> does it change, though, your protocol? >> you do software updates frequently here because you are so advanced electronically. do you decide to change your protocols, perhaps when you decide to change the software or put a new program in place? because of the glitch that happened this morning? >> going forward, we investigated the issue today. we found it we fixed it. tonight and overnight starts the investigation of what we need to change. do we need to change the protocols? absolutely. we can't put ourselves in this position again. exactly what those changes are, i'm not yet pr eepared to say.

these markets are complex, the technology is complex. we're actually building a new technology platform that we're going to begin rolling out this year that's going to be a simpler trading platform. >> a number of traders ask me about the nyse's disaster recovery program. all the exchanges, as you know are required to have a disaster recovery program filed with the sec explaining what they would do in just this kind of emergency. can you tell us what that program entails? and, apparently you did not choose to go to that disaster recovery program. explain your thinking. >> sure. bob, so in any market disruption and inevitably these things happen. we have a playbook that we follow. and that playbook involves making a decision like i did today, to suspend the market or not. and in this case we did. mobilizing our rapid response team, that's a fancy way of saying the senior management team as well as i.c.e. chairman

and others we either get together in person or combination of in person on the phone. and we work through the issue together. one of the important concepts or preceps of our plan is to choose the least disruption possible. if we had failed over at our disaster recovery center the entire customer universe would have to had to connect our to center which is in chicago as opposed to the new york area. whereas the alternative was evaluate the issue, rollout the fix, be live prior to the close, in which case our customers had no work to do. and so, we felt like that was what customers would prefer in fact, we were in touch with customers and know that to be the case. and so it was never really an option for us to go to the disaster recovery. >> your answer was it was less disruptive and less technologically risky to stay with the current system and try to fix it. >> there's an impression, tom,

that the redundancy as a result of this program was seamless. simpletons would say, you have to flip a switch and you're trading over there now in chicago. and because that system is in place. but you seem to be suggesting here to bob that it was more disruptive to go over there with that redundancy program than to halt trading. >> sure, and i could see how that impression could be held. that's not the way it works in any major market. customers. so if you're a brokered dealer or a trading firm or customer that's connecting the exchange ultimately while we think of the cloud and the ether and the internet, you're connecting to a place. >> right. >> in order to go to a disaster recovery center, there's work to do to point your connection to a new facility. >> when would you go there? when would you use that disaster recover are you system? >> hurricane, earthquake catastrophic outage. >> as you know, the s.e.c.

required all exchanges to regularly test their technology. do you foresee any changes going on with that? have you been in touch with the sec today? >> i applaud the s.e.c. i think to some extent it codifies what we already do and to the extent it requires us to do more. to protect the nature of the markets, i think that's a good thing. regsci is not intended to avoid disruptions. disruptions happen. nobody's happy about them. customers had a difficult day. i'm not minimizing what happened today whatsoever. but regsci codifies how we respond to those disruptions and how do you make it transparent to customers what your response will be. and today, we took those

concepts and we actually put them into practice. we were very -- communicating very regularly with customers, with the regulators, it was clear what our plan was. the market knew for the better part of the day what we were going to do and a tight time window with bringing the market back up. regsci, while i think it's good hygiene for the market at large, it codifies practices that -- >> we've got to let you go. but there was a communications issue right at the open between you and the customers and the nyse said it was resolved and we didn't think much of it. in retrospect was there a connection between that event and perhaps the market going down later? >> i don't know, bob. >> very quickly -- >> more to come on that and that's one of the things i'll be working on tonight. >> does this silence those who have been railing against what they call the fractionalization of the markets? in other words, having various exchanges in other places? because that actually worked well for you today. whether it was arca or any of the other exchanges. stocks were trading on the other

exchanges despite those who have been critical of them. does it change the conversation? does it silence those? >> i haven't had time to reflect on it. but i will point out arguments on both sides. on the one hand our markets are complicated and complex. and so you do have issues that rise from time to time. on the other hand, to some extent, the resill yen of the market. the open happened unaffected exclusively here in the new york stock exchange. and the close happened in a normal fashion. i could see which side of that argument wins out. we would all agree these markets are too fragmented and anything we can do to simplify them. >> it's not over yet. thank you for joining us this afternoon. president of the new york stock exchange. much more of our special coverage of this trading outage is still ahead. former s.e.c. commissioner will join us and get her take when we come back after this.

it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank.

♪ whoa what are you doing? putting on a movie. i'm trying to watch the game here. look i need this right now ok? come on i don't want to watch that. too bad this is happening. fine, what if i just put up the x1 sports app right here. ah jeez it's so close. he just loves her so much. do it. come on. do it. come on! yes! awww, yes!

that is what i'm talking about. baby. call and upgrade to get x1 today. ♪ welcome back. floor trading at the new york stock exchange halted for more than 3 1/2 hours today. and it was quite a day otherwise in the markets, even looking beyond. the dow finishing on the lows of the session, down 261 1/2

points. the nasdaq got hit the hardest percentage wise down 87 plus points or 1.75% while the s&p was down 34. >> and here are some other stories we're watching for you today. greek banks will not reopen this week. this after greece applied for a three-year lone from the european stability mechanism. china's markets, they were down 6%. the chinese government announcing more new measures. the shanghai composite has fallen more than 38% in the past month. and the federal reserve here striking a dovish tone despite an improving economy. not ready to exit a zero interest rate policy. the groundwork for rate hikes would be outlined in a later note. >> all right, let's get more on the new york stock exchange. and joining us is cnbc

contributor. we were expecting a little earlier today. but you didn't get here because. >> you should just keep me away from any sort of technology bill. i was on one of the united flights that was affected this morning. >> of course you were. >> of course i was. >> you tried to check the website. >> i'm actually keynoting at a technology conference next week. and if something happens, you can blame everything on me. >> what do you make of a day like today? we talk about the fragmentation of the markets. thank goodness for that there was a place to trade even when the floor of the new york stock exchange was not open for business. >> i think there is good news and bad news. i certainly think that the fragmentation and the fact that the trades could be executed elsewhere was certainly a good thing. that being said, the number of different glitches that we had today that let's just assume that there wasn't a hack involved, something like united airlines where they're saying it was a bad router that took down the entire computer system worldwide, that does not give me

a lot of confidence. i'm flying on these planes every single week. if that's without a hack it just shows the kind of vulnerabilities we do have if somebody wants to do something nefarious. and we know there are plenty of people who do want to do that. >> you can kick the plug out of the wall instead of having to do something too sophisticated. >> it's kind of like that south park episode with kyle fixing the internet and all he had to do with power cycle and plug it back in. i do think it's something we're not taking seriously enough. i think that the entire thoughts around potential cyber attacks or just our reliance on technologies. and if you think about, we're talking about things like self-driving cars. it's all i could think about today is what a bad idea self-driving cars is. >> that goes to the point, have we allowed technology to swing too far to the right where we've given up control for technology and doesn't need -- do we need to have a conversation. technology's fine, it's great. but bring it back to the center

a little bit. >> what does that look like though? >> i'm not sure. i've already let that genie out of the bottle. i'm not getting in a car that's driven by a computer and me sitting in the side car. >> i think technology needs to assist people. i think we can can't abdicate our responsibility and assume the technology's going to do everything for us. the times it goes down you have to rely on human beings to be that backstop. and if they're not used to using or doing the things -- >> when's the last time you sent a handwritten letter? >> i sent a handwritten letter to you, kelly, tomorrow. the last time i did it is tomorrow. >> thank you very much. >> tell me you're not getting on a flight tonight. >> i'm getting on a flight tonight and i've already got a message it's delayed an hour and a half. >> on your mobile twice? >> i'm saying it's everywhere. >> a handwritten note. >> there's no going back. our special outage on wall street coverage continues next. we're joined by the former s.e.c. commissioner. stay with us. owing by making every dollar count. that's why i have the spark cash card from capital one.

i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? we live in a pick and choose world. 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.

it is the topic that we'll be talking about for a while, i'm sure. this 1/2 hour outage at the new york stock exchange before they were able to get trading up again because of a technical glitch. we want to talk about that from a regulatory stand point good to see you again, thank you for joining us. >> is there a regulatory issue to be had here.

>> before we start last night. >> well done. >> i am a big believer in you know technology. i think technology is kind of a bit of magic and it has done wonderful things for both the markets and for investors and for the regulatory system. at large. the last time there was a decision to close the market was september 11th that i know of and we were concerned about letting parts of the market operate without parts of the market. i think the good news today is that can happen without there being a huge loss in investor confidence. once you know that it's not a cyber attack. and the cyber attack thing is a big deal and it's something i think everybody is focused on. so i'm sure that people were pretty ramped up to deal with that and were pretty much

relieved to find out that it was some kind of other systematic -- or systems glitch. which happens. >> commissioner we heard from tom farley just a moment ago that there was a disaster mechanism in place as a backup but that is a much bigger step than flipping the switch to turn it on. do you have any concerns about this particular response here from the new york stock exchange, that there wasn't an easier way to resume trading in a different place or different setting? zbll >> well, kelly, i think what you were talking about was business continuity planning and that was post hurricane sandy and that's more of a physical issue as opposed to a systems issue which is what the nyse faced today. this i would put more in the bucket of the facebook ipo trading issue that the nasdaq had a couple years ago, two years ago, and i think what's different is that the traders in that situation said hey, we have problems, we can't really -- we're trading blindly or something like that and called a

code blue meeting and the head of that exchange decided to go ahead anyway with trading. today i think they decided not to do that and not to face a $10 million fine but to actually step back and say okay, things aren't working the way they should, let's pause and make sure they do work properly because as an ancillary concern you have investor confidence concerns. and especially when you have that cyber attack sort of phenomenon out there and people jumping to that conclusion, that it's something more than a systems glitch you want to make sure that you can demonstrate and figure out what the problem is before you get too far into the trading and future problems with the regulators. >> all right. >> so the response to that -- sorry. one second. >> yep. >> is the actual -- the plans that was talked about, reg fdi, to make sure -- so that the regulators are communicating with the exchanges and the markets, to make sure they do

have a plan in place should there be some kind of systems outage or glitch. that sounded like it worked pretty well today. >> just took a while to get it back. >> a while. a long while. much longer than we're used to. >> thank you for joining us today. we were sending -- thank you notes on the way. >> am i sending you one? >> no. we'll send it to you because we're grateful you were with us today. >> nearly a 300-point decline for the dow today after a 3 1/2-hour trading halt. >> we will get you set up for tomorrow, hopefully a full trading day, when we come back. when you're not confident you have complete visibility into your business, it can quickly become the only thing you think about. that's where at&t can help. at&t's innovative solutions connect machines and people... to keep your internet of things in-sync, in real-time. leaving you free to focus on what matters most.

couple minutes before "fast money" gets under way. with technology being what it is, is this going to be the exception of the rule? or should we get used to this in the future? >> i'd like to think this is the exception to the rule but the fear is i think the more we go down that path the more you have to be prepared for technology to fail along the way because listen like he said there was a problem in the code. it's people who write code and then you implement it and sometimes you get an unintended consequence, which is exactly what happened today. >> i think it depends on how complicated these markets become. >> they're very complicated already. >> they're very complicated right now. if they continue -- they certainly aren't getting simpler. >> no. >> and the more complicated

these instruments get, the trading gets that opens the way to risk with technology. >> but the volume of data traffic that we handle every single second here, i think it's way beyond the point of well let's have a human interface that's going to back us up. we just have to be able to have the capacity increased to the level we need it. >> we thank all you humans for joining us. >> go write a note to your parents tonight. that does it for us. "fast money" begins right now after this on cnbc. >> see you tomorrow.

live from the nasdaq marketsite i'm melissa lee. breaking news this hour. three stories we're all over tonight on this historic day on wall street. the new york stock exchange america's stock market reopening after trading was suspended for more than three hours. plus china, the world's second biggest stock market in the midst of a collapse. we'll tell you how big a threat this is to your money as we sit just three hours away from the open there. and we are following earnings as they kick off the season. alcoa out moments ago. we'll bring you the latest from that conference call. we start off with the big story of the year. the new york stock exchange halted for three hours. causing a flurry of chaos on the floor and markets around the world. >> you can see the