After halting trading for about three hours Thursday afternoon due to a technical glitch, the Nasdaq exchange laid out a plan to resume trading. Trading was halted around 12:14 ET due to issues with "quote dissemination," the exchange said in alerts sent out to traders.
By Hibah Yousuf and Maureen Farrell
August 22, 2013: 3:19 PM ET
After halting trading for about three hours Thursday afternoon due to a technical glitch, the Nasdaq OMX exchange laid out a plan to resume trading.
Trading on Atlantic American (AAME) began first at 3:00 p.m ET, following a 15-minute quote only period. All other securities are expected to begin trading at 3:25 p.m. ET, also following a 15-minute quote only period.
During the quote only period, which it typically uses during initial public offerings, Nasdaq will accept buy and sell orders, and investors will also be able to cancel orders.
Nasdaq said it would not be canceling open orders, but said customers who wish to cancel their orders can do so, and customers who wish to not participate in the re-opening of trading should cancel their orders before trading resumes.
The Nasdaq is home to more than 2,700 stocks, particularly technology giants such as Apple (AAPL, Fortune 500), Google (GOOG, Fortune 500) and Microsoft (MSFT, Fortune 500). Trading in Nasdaq-listed options were also halted.
SEC spokesman John Nester said the agency is "monitoring the situation" and that it is "in close contact with the exchanges."
Trading was halted around 12:14 p.m. ET due to issues with "quote dissemination," the exchange said in alerts sent out to traders.
The New York Stock Exchange said it halted all Nasdaq securities at the request of the Nasdaq. The BATS exchange also said it disabled trading in Nasdaq-listed securities.
The trading glitch could be another blow to investor confidence, which has been rattled over the years by the Flash Crash in 2010, Facebook's botched IPO, and more recently, a fat finger trade affecting China's stock market.
"We know machines run the show, but we're beginning to see glitches more and more frequently," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "That doesn't help overall confidence among investors."
Broader market: Despite troubles at the Nasdaq, the broader stock market moved higher Thursday on positive global economic news snapping the market's recent losing streak.
The Dow Jones industrial average and the S&P 500 rose modestly. The Dow has ended lower for six straight days, its worst stretch since July 2012. The Nasdaq was up nearly 1% before the trading halt.
Positive economic data from both China and Europe gave investors some optimism. European markets moved solidly higher, while Asian markets ended mixed.
A survey of European purchasing managers pointed to signs that the economy may be stabilizing there. Better-than-expected data from Chinese factories gave glimmers of hope for Asia and the broader global economy.
Emerging markets breaking losing streak too? Indian markets also jumped higher after four consecutive trading days of steep losses. The Mumbai Sensex popped up by nearly 2%. Markets have fallen by 11% over the past month due to concerns about a flagging economy, political gridlock and an outflow of foreign investment money.
A retail rout: Looking at individual stocks on the move, several retailers plunged Thursday following weak quarterly numbers.
Abercrombie & Fitch (ANF) shares plummeted after the teen-oriented clothing retailer reported a slump in quarterly sales and profits and a terrible outlook.
Traders on StockTwits are worried. American Eagle Outfitters (AEO) also had a lousy earnings report this week and hopes aren't high for Aeropostale's (ARO) earnings after the bell either.
CapitalObserver: Is there a demographic issue facing teen retailers? Hard to believe they are all just performing poorly $ANF $ARO $AEO
tickertutor: $ANF My guess is most "kids" in their demographic are looking to dress more adult with offerings from the likes of $KORS and others
Sears Holding (SHLD, Fortune 500)reported another quarterly loss as revenues continue to fall. Investors were not pleased.
StockTwits: #3: $SHLD is down 8%. Earnings missed the Street's estimates this morning. Two big misses since Eddie Lampert became CEO.
Ralphed: $SHLD "Kmart Sucks". Sears needs realize that loss and ditch them
GameStop (GME, Fortune 500) bucked the trend in retail. The video game seller's stock soared on better-than-expected earnings and strong guidance around the promise of new gaming consoles. Traders made light of how the stock, which has been a popular target of short sellers, continues to go higher despite many bears trying to talk it down.
FinancialJuice: GameStop $GME says sees a 'significant positive' for console demand
broseidon: Anyone remember when Cramer said short $GME, quoting "its in a secular decline" BAHAHA... Cramermerica gets burned agian LOL
In the world of tech, Hewlett-Packard (HPQ, Fortune 500) shares dropped after the company announced its latest earnings on Wednesday, showing that PC sales are still in the dumps. HP is still top stock in the Dow this year though, as investors have high hopes for the turnaround plan of CEO Meg Whitman.
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