There’s a lot of chatter on CNBC about some allegedly bad data on the NYSE this afternoon. John Thain, the head of the NYSE was on the floor checking on things after the Dow hit a 200 point air pocket around 3 PM. Here’s the chart with 15 minute bars:
And the chart with 1 minute bars showing a drop of more than 200 points in 3 minutes:
I’ll post more if I hear more details about what happened. Certainly part of the issue is that the NYSE had record volume today…
P.P.S. I’ve never heard booing from the NYSE floor! They were booing their heads off at the closing bell just now.
P.P.P.S Reports of “stuck” stock prices on the NYSE. Some stocks are *frozen* right now.
P.P.P.P.S. Here’s a note on the 3:00 Dow drop from the WSJ blog:
Traders remain flummoxed by the sudden plunge in major averages at 3 p.m. Rumors persist among traders that some sort of technology bottleneck was responsible. Others surmised that the trading collars placed on by the NYSE had been removed, but the NYSEâ€™s guidelines would suggest this shouldnâ€™t have happened (the collars are put on when the New York Stock Exchange Composite Index falls 180 points, and would be removed if the index moves back to within 90 days of the previous dayâ€™s close, but the index is down more than 300 points). An NYSE spokeswoman said she didnâ€™t believe the collars had been taken off, and she would not comment on technology-related issues.
â€œIâ€™ve never seen such an instantaneous gap downward,â€ says Anthony Conroy, head trader at BNY Brokerage. â€œInitially nobody really believed the market was down 500 points â€” I thought it was a glitch or system error.â€
P.P.P.P.P.S. And the explanation for the drop:
The sudden, sharp decline by the Dow Jones Industrial Average shortly before 3 p.m. Eastern time today was triggered by a tabulation delay by Dow Jones data systems, which calculates the average. There was a temporary lag in calculation of the 30 large-stock average due to a surge in order flows as the market continued to tumble in afternoon trading, much like a clogged pipe. Just before 3 p.m., Dow Jones Indexes switched over to a backup system to calculate the average, which nearly instantly registered the huge move.
The glitch wasnâ€™t the cause of the decline, but it did cause the drop to register far more quickly than it otherwise would have…
P.P.P.P.P.P.S. Here’s the Dow plunge as it happened in real time on CNBC today: