We will talk about manufacturing when we talk with the ceo of walmart m america. Lets check in with dominik chu on what happened today. When will we hear from the nasdaq. Dom, walk us through what happened today. Lets get up to speed on the latest update around 3 41 eastern time. Nasdaq said all operations were back to normal. We head into the closing bell with things at least relatively stable. At least thats the initial impression. Earlier today, lets get you up to speed on what happened. As early as 12 or even before noon today we started to hear stories of trading anomalies around 12 20 they started to shut done stocks for trading p. This is taped c securities, one thing you might read about in the papers, Going Forward into tomorrow. Nasdaq listed security here in the u. S. There was a problem with the pricing engine. They werent able to get good date why out on prices so it affected the entire market. None of those nasdaq listed securities could trade. Later on in the afternoon, we heard the nasdaq was going to try to restart things. This time they are going to restart things with 15minute window where all they were going to do is aggregate and show prices. Not tradeable, just prices so that participants would know what levels those stocks were trading at so that 15 minutes later they could transact that they wanted to. Nasdaq said they werent canceling any orders in the system prior to this trading halt. If you didnt want to be part of the restart, you had to cancel those orders yourself. We did learn later on through call it 2 45 this afternoon. They were trying test security. They quoted for 15 minutes. Around 3 00 they started trading it. Again, 3 10, open all nasdaq securities to quoting in the hopes that 3 25 they open to trading all nasdaq securities p. Those things went off without a hitch. It appears for now. Again all Options Markets are now back on line at the nasdaq. So it has been a very eventful day maria. Those are headlines here. What we dont know is what exactly caused all of this particular action today, maria. Back over to you. Dominik, thank you. We want more on the trading halt. Bob pisani talking to traders today. What has bb the fallout from your standpoint, bob . Obviously this is a bit after blow to investors confidence. Again it doesnt appear to have anything to do with High Frequency trading, this appears to be a software problem. There are two possibilities. One there was a hack involved. And that is unlikely. The other is just a shot oftwar problems. There are Software Systems built on prior Software Systems that interact with each other and frequently have glitches. This was a big one. Not only do they have to interact with old Software Systems, they also have to interact with trading systems. More exchanges, more interact increases the possibility of failure. I want to point out that there is about 150 of them here and a lot of them, as far as i can see, all of them did reopen and things did operate normally. I do want to point out that at about 3 37 as reported earlier, nasdaq did say they stopped routing trades to arco, the platform here at the New York Stock Exchange. Apparently arco is not reporting properly on. Diamondbaon nasdaq stocks. It appears to me, maria, like theres a fairly normal close down here, i dont see any traders standing around. Im going to walk around and see if everything is closing normally. I will report back now a couple of minutes. All right, bob. Thank you very much. Covering the gap. Gap earning. Courtney has more. Over to you, court. Gap coming out with Second Quarterly result. In line with what analyst had expected. At the high end of the Guidance Range that gap had given. Sales of 3. 87 billion. Same store sales up 5 for the quarter. The company increasing its full year dividend to 80 cents from 60 cents. That also represent 50 increase from what they did get for the full year dividend in 2012. Also up their full year guidance to 257. Range of 257 to 265. Thats an increase in previous full year guidance of 252 to 260. All around a positive result here from gap. One of the standouts specialty retailers among a bunch of really disappointing results, you can see gap shares are higher after hours trading and response. Maria . Courtney, thank you so much. Want to get more on this nasdaq issue here. Trading problem causing, all nasdaq trading to get halted for three hours. Bertha coombs, what are you hearing from the exchange . We are waiting on a comment from the exchange. Do you think you will good get it soon . Im not terribly hopeful. But basically all day, few comments i have gotten from the pr folks who are working, the head pr person, thats part of the reason its difficult to get going quickly. It is really their technical staff put out about trading. So they are forwarding me those messages often at the same time they are going up on the website. We recall when we have facebook melt down with facebook ipo. We didnt really hear from nasdaq officials on the record terribly early. They dont tend to come out ahead of these things particularly when they dont know what exactly is going on. Or at least are not prepared to talk about what they know about what exactly is going on. It does appear this is some sort of software glitch, is what it appears on the quoting system. So that people couldnt get prices and so they felt that they needed to shut everything down in order to fix that. It took some three hours to get that back. Interesting, trading back here, the last 35 minutes into the close seem to be fairly normal but you probably add lot of participants who sort of sat back. It is thursday in august. Volume not very high. A lot of folks may have sat back to see how this turned out. Nasdaq stock itself, down just over 3 , about 3 1 2 percent. Not terribly impacted by the news. It went back and looked about how the nasdaq traded when you have that big essentially pr fiasco when the facebook ipo couldnt open and we saw so much complaint about that. And that day it was down a little bit more than 4 . But the stock from may 18, 2012 is up. It is up some 13 even with todays pull back. So in terms of the nasdaqs stock, it hasnt seemed to have impacted them to have seen these kind of glitches. To your point a lot of traders are talking about the fact that why arent they out here front. Why does this continue . Why are they dissatisfied with the threehour shut down . Yeah. Absolutely. And that was obviously the big debacle. We want to find out what was learned from that debacle. Pandora out with earnings. She is out with that angle of the story. Over to you, maria. Reportinging a slitly better revenue than expected. Maria, to go out there numbers. Nongap eps revenue coming in at 162 million. Wall street was expecting 156 million. Nongap is 4 sent. Looks like that compares to expectations of 2 cents per share. The real concern here is about the third quarter. The Company Guides to nongap diluted eps between 3 and 6 cents. Wall street had been looking for as much as 8 cents in third quarter. That seems to be what is riding on pandora stock. Despite growth. Nongap total for pandora, 92 . Obviously mobile is key to pandora and many other company a growth. Now back over to you. Thank you. I want to bring in scott cohen now. Reaction to the sec and scott, the last time we had Mary Jo White on, she said she is going to look at Market Structure. What can you tell us in terms of the secs dealings with the nasdaq leading up to this . Nasdaq and all of the other exchanges maria. Some of the rules that exchanges and everyone that our operating under are upwards of 25 years old. So the sec back in march, before Mary Jo White came in proposed changing all of that. And with a big upgrade of the regulations called regulation sci or systems compliance and integrity that was supposed to update everything to the world of High Frequency trading and all of the advanced technology. The nasdaq and all of the other exchanges three weeks ago pushed back on that. They said they like the idea of the rules. But they complain that many of the rules are too vague and they complained about the cost. Particularly the reporting thats involved. All of the notification they have to give to sec. Sros the letters said, that many of the economic and cost assumption by commission will generate greatly by analysis. They run the risk of reallocating resources and the sci and comply ins entities, including the nasdaq and again the nasdaq, nyse, bats and all of these other exchanges, saying, wit a mint, lets pull back a little bit. Meantime, weve had this debacle happen today and these rules with Public Comments now closed. It is still in the rule making process. Perhaps could be next year before theres any other update. All right, scott. We want to we want to slip in another earnings report. Aeropostle out. Reporting an eps loss of 34 cents. Analysts expected a loss of 24 cents. On revenue of 450 million. They did tell us that before. Sales including ecommerce down 15 . A loss of over 21 to 26 cents. They are closing between 30 and 40 aeropostale, they are closing between 15 and 20. Thats a change that they have updated us to at this point. Maria, back to you. Thanks, court. Now joining me is Heather Hughes from sun american funds. Rod smith from riverfront investment group. Also with us, our own rick santelli. Good to see everybody. Thanks for joining us. Rod smith, give me your thoughts on what went on at nasdaq today. Did this impact your investing or trading at all . It did not. And i think this is important. It did not affect our investing at all. I think this is a very frustrating day for traders. But it was a good day for investors. Markets were up. And they were up for some good reasons. Particularly i think some of the reasons coming outside of the u. S. The numbers out of europe are very encouraging this morning. And European Market add nice day. And numbers out of china, not so bad. Thats what i tend to focus on. No doubt this is a very frustrating day for traders and particularly people trying to trade nasdaq stocks. But i think that from an investors point of view, it was a good day. And encouraging that nasdaq managed and very important for a lot of people who need closing prices that we got a close on the exchange. Yeah, you make a good point. Heath Heather Hughes, what about you . Of course you could do nasdaq futures and another exchange. But it was certainly frustrating for a threehour period, a real black out. Yes. For the mutual fund side, Retail Investment side, i spoke with some of the largest financial vo voizors in the country. They are not traders. They received more calls on rising rates, not necessarily the nasdaq being halted. However, i can see how this would not affect Investor Confidence in future days to come. Certainly. So it is a confidence issue at the enof the day. Michael, how do you see it . Look, the markets have become an extension of the machines that control them. As those machines break down as inevitableably they will, even the most sophisticated machines break down occasionally, have you to be prepared for that. What worries me is the nasdaq didnt have either redundancy in the systems they were using or parallel system this he could move into, in the event there was a break down. Good news about today is the market didnt seem to react from their down side. Thats a very positive sign for the market. Normally an event like this would spook the market. Definitely spook confidence longer term. But the market showed real underlying strength. There seems to be some type of i agree with that. But nasdaq of course was down the nasdaq owner of nasdaq was about 3. 5 . Rick santelli, what was the buzz on the floor today . The big discussion and this is something i havent heard anybody else say and its been a debate not only for nasdaq but for issues regarding the cme. And that is, was it a good idea for the exchanges to go public . You think about a couple of comments. Scott cones nailed it and so did bob pisani. Legacy software on the nasdaq and many exchange, which means it is owned. Users that are very hightech. The goal of the exchange to maximize Balance Sheet is an entity reporting quarter it quarter. Maybe to spend more money on connectivity to the High Frequency guys because thats where their bread is buttered. Quickly to fixed income market, think about this. We have flattening of 5s to 30s by about 10 basis points. Fiveyear yields up four and down five basis point in 30year bond. You want to watch the fiveyear note that continues to fall in price and rise in yield. It is now comping back the furtherest to the first week of july of 2011. Hi, everybody. Final word here, heather. Sure. I was just saying that rick has a good point rising rates and investors continue to be short duration and defensive on a longer date of mature its for sure. Thanks. Thanks everybody. We want the fallout from the nasdaq. Threehour traysing freeze. It is still being tallied much much more on this. Stay with us on the closing bell. Customizable charts, powerful screening tools, and guaranteed 1second trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Welcome back, big story of the day today and that is a trading halt at nasdaq. All nasdaq stocks, halted for three hours. Rejoining me right now, Michael Crofton from philadelphia trust company, rick santelli, and new we are joining the conversation with former sec chairman harvey pitt joining us on the telephone. Harvey, i want to kick this off with you. We have talked a lot in the past about Market Structure. Do you think it is partly Market Structure. We are waiting on the nasdaq for answers. But have you seen anything like this before . Nasdaq shut down for three hours . No. This is unprecedented. And this may be a question of nasdaq structure but not about overall Market Structure. This goes to technology. And it brings to bear the wisdom of the ancient chinese axom of fool me once, shame on you. Fool me twice, shame on me. So nasdaq has issues and they are fooling everybody . Nasdaq, in my opinion, has two serious issues. There are two particular problems here. The first is, is their technology up to the task. Thats number one. Then the second is, that when Technology Goes bad, do they have an established Crisis Management program. What happened today with nasdaq is really inexcusable. Some stocks were shut down longer than others. Some stocks opened ahead of others. And no one knew what was going on. It looked like nasdaq was clueless about how to deal with this emergency. You know, it sort of a deja vu with what happened with face book. This is a different story, i recognize that, but is bob greifeld going to make it as ceo of nasdaq . I mean, whos in charge. Thats exactly right. While this is a different entity, problems reflect the fact that technology can create problems. And there has to be mechanisms for people to deal with it. Nasdaq has spent more time protesting the secs rule making about Technology Rather than coming up with effective solutions. Okay. So the rulemaking, you know, Mary Jo White, new chairman of the sec, says they will look at Market Structure. Harvey, what needs to be looked at to avoid these mishaps . Because it seems like they are happening repeatedly. Remember last week, we have goldman sachs. Itll cost them a hundred million dollars. They add trading glitch. There was a trading glitch in hong kong a couple weeks ago. What is the problem, putting nasdaq aside. I think the problem is, first, requiring the use of technology to be continuously tested and updated. Testing will start to reveal problems. It wont catch all of them. But it is required now to have a continuous stream of testing and not once every quarter or once every half year. The second thing is to have redundancy platforms so that when Technology Creates problems, you can get feeds from other places. But that orders dont get sacrificed. The third is to require every exchange to work, to prevent the kind of crisis situation that arises and the confusion that gets created when theres no coherent plan of reaction and response to a technological glitch. Let me bring bob pisani in here. Because bob, you know, it brings up the issue of human beings trading stocks versus the machines. Now i recognize that the majority of trading at the New York Stock Exchange is electronic anyway bp but will this bring up once again that you have a backup. That you make a market so you can have the investor at the end of the day can have liquidity . There might be a small group of people done here, that oh, you have a problem at nasdaq. But anybody who watches this realizes that it is not a matter of the humans versus the machines. It is a matter of technology. Mr. Pit has got it exactly right. There have been attempts to upgrade standards for technology testing. Scott was telling us earlier, we have been talking about it for a while, that would require more uniform technology standard, uniform testing standard. Thats what we need to do here. I want to make another point here maria. That is that the stock trading business is terrible these days. Awful. There have been layoffs all throughout the street. Layoff at nasdaq and at the New York Stock Exchange as well. Remember, they are in a deal to be acquired right now. It is quite possible that staffing is thin here. You might need to have more people. The point is, you wont eliminate technological problems or issues but when you have systems here that are so complicated that you get frequent break downs you need some way to figure out how to upgrade the systems. Michael crawford, would you