Wall Street climbs after extended Nasdaq outage

NEW YORK Thu Aug 22, 2013 5:44pm EDT

1 of 3. Traders laugh as they work on the floor of the New York Stock Exchange shortly after the market opening August 22, 2013.

Credit: Reuters/Lucas Jackson

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NEW YORK (Reuters) - Stocks closed higher on Thursday in a trading session marred by a historic trading halt of roughly three hours on the Nasdaq stock exchange as a result of technical problems.

All traffic through Nasdaq OMX Group Inc (NDAQ.O), the second-largest U.S. stock exchange stopped at 12:14 p.m. (1614 GMT), the exchange said on its website. Shares in Nasdaq closed down 3.4 percent to $30.46.

The exchange resumed trading with a single stock, Atlantic American Corp (AAME.O), at 3:00 p.m. (1700 GMT) before trading resumed in all of its listed securities at 3:25 p.m. (1725 GMT). The lightly traded stock advanced 0.6 percent to $3.82.

The outage was the latest in series of high-profile incidents on exchanges. <ID:L2N0GN1L7>

"We have automated securities markets to the point where you are reliant on computers. This is going to be a recurring thing," said Stephen Massocca, managing director, Wedbush Equity Management LLC in San Francisco.

"It is difficult to have automated systems that don't have issues on occasion."

The outage led to what was easily the lowest full-session volume of the year, with about 4.23 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, well below the daily average of 6.3 billion.

The Dow Jones industrial average .DJI rose 66.19 points or 0.44 percent, to 14,963.74, the S&P 500 .SPX gained 14.16 points or 0.86 percent, to 1,656.96 and the Nasdaq Composite .IXIC added 38.918 points or 1.08 percent, to 3,638.707.

The Nasdaq Composite Index .IXIC was up 31.38 points, or 0.87 percent, at 3,631.17 when the trading halt began, putting the brakes on trading in stocks of such well-known companies as Apple (AAPL.O), Microsoft (MSFT.O) and Amazon.com (AMZN.O).

Microsoft ended the session as the biggest boost to both the S&P 500 and Nasdaq 100 .NDX indexes, up 2.5 percent to $32.39. Apple edged up 0.1 percent to $502.96 while Amazon closed 1.8 percent higher at $289.73.

Throughout the Nasdaq outage, other exchanges such as the New York Stock Exchange continued to operate.

The Dow industrials rose for the first time in seven sessions after upbeat data from the world's top economies overshadowed nervousness over the winding down of the Federal Reserve's stimulus program.

Gains in the Dow were limited by Hewlett-Packard (HPQ.N), which tumbled 12.5 percent to $22.22 a day after reporting a decline in the Enterprise Group's revenue. The group is the computer company's second-largest division and a critical component of Chief Executive Meg Whitman's plan to transform the company.

The S&P 500 registered its biggest percentage gain since August 1, but was unable to close above its 50-day moving average for a fifth straight session. The mark, now at 1,658.87, has become a technical hurdle.

Advancing stocks outnumbered declining ones on the NYSE by 2,551 to 479, while on the Nasdaq, advancers beat decliners 1,964 to 519.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

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Comments (2)
brotherkenny4 wrote:
HP has always wanted to be a cult like Apple, they just have never had the cult leader. A true cult leader understands that the religious followers want pain, not rational thought. Anyway, not many know the subtleties of that dynamic. That approach will likely die now that Jobs is worm food. Not to mention that electronic toys are becoming commodities, and as the differentiators (features) become less and less truly differentiating, customers move to the low cost producers rather than a weakly differentiated high end.

Aug 22, 2013 12:59pm EDT  --  Report as abuse
cjmacintosh wrote:

Aug 22, 2013 11:34pm EDT  --  Report as abuse
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