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tv   Legal View With Ashleigh Banfield  CNN  July 8, 2015 9:00am-10:01am PDT

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ake xarelto® if you have an artificial heart valve or abnormal bleeding. tell your doctor before all planned medical or dental procedures. before starting xarelto®, tell your doctor about any kidney, liver, or bleeding problems. xarelto® has been prescribed more than 11 million times in the u.s. and that number's growing. like your guys' scores. with xarelto® there is no regular blood monitoring, and no known dietary restrictions. treatment with xarelto® was the right move for us. ask your doctor about xarelto®. hello, everyone, i'm ashleigh banfield. this is breaking news coming to you via many computer glitches seemingly happening at the same time. our breaking news from wall street right now -- all trading briefly stopped on the new york stock exchange just minutes ago, appearing to be because of a technical glitch rather than what we're used to hearing, say a financial problem. nonetheless, the dow is down
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sharply at this moment. this. coing just after hearing most of the morning about united airlines suffering a major computer glitch that stopped much of its operations. the "wall street journal" for its part suffering some kind of a glitch that is heavily affecting its web site as well. this is what you see when you try to go to the "wall street journal" web site. a very unusual message. i want to start, though, at the top. that's with the new york stock exchange. let's go straight to alison kosik reporting live from there right now. is trading back and resuming? do we know anything more about what happened? >> trading here at the new york stock exchange has halted. it is not happening. business here is frozen, has been frozen now, ashleigh, for about a half hour. this is about a technical glitch. this isn't a regulatory halt. it's nothing that had to do that we can tell with a fat finger but we don't want to speak to early on that. traders are telling me that before the opening bell rang this morning at 9:30, the new
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york stock exchange actually gave out a list of many, many stocks about possibly problematic stocks. now, what they mean by that i'm still trying to figure out, but they included stocks across a wide range. they included kate spade, nordstrom, korea electric power. these were some of the companies on this list that the new york stock exchange distributed before the opening bell to the traders here in new york here at the new york stock exchange but then came this halt in trading. the trader i talked with said he doesn't know if the two issues are connected meaning the halt now and the list of stocks that the new york stock exchange handed out before the opening bell today. as we speak, 30 minutes and counting. business has stopped here at the new york stock exchange but trading is still going on at the nasdaq. ashleigh? >> stand by for one second if you will, alison. i want to read a statement that came out just in the last few
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moments from the new york stock exchange via a spokesperson and it says "we're currently experiencing a technical issue we're working to resolve as quickly as possible. we will be providing further updates as soon as we can and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently and ensure a timely and orderly market reopen. alison, quickly to you, i began this broadcast suggesting this is not the first major computer glitch that caused a problem today. united airlines has suffered vastly for the last several hours and now the "wall street journal" suffering as well. is anyone at the stock exchange talking about those issues and seeing if there's perhaps any correlation? >> they're not connecting the dots on those issues. i do think it's interesting how the new york stock exchange flagged many stocks before the bell even rang. i'm wondering if this is an isolated technical glitch compared to the others you're mentioning.
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i do think it as interesting that that document went out this morning. >> hold that thought for a moment if you will. i want to bring in rana, our cnn global economic analyst as well as paul la monica, our money correspondent. paul, your offices must have been buzzing, especially when you saw the "wall street journal" go down. what are you hearing from your sources? >> it sounds so far, as alison pointed out, that this is probably just a technical glitch, but you have to ask the question. united, their computer systems go down. the "wall street journal," the preimminent financial news site, their site is now down as well. is there a connection? i don't know if we can reasonably say that there is but there are so many stories everyday about this company getting hacked, other companies getting hacked. cyber security is a huge issue right now and many companies are not as protected as they should be. >> rana, let's talk about the effect of all of this, the financial losses that we may not hear or see right now but they're happening.
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>> they could be significant. 80% of trading is done by a computer algorithm. this increases volatility. so when you get a glitch like this, you can just have billions of dollars in losses. this is also coming at a time when china's markets are in freefall, there's a big stock market crash. >> and frozen this morning, right? >> and frozen this morning. europe is in a debt crisis right now, greece is a problem. so all three legs of the global stool are wobbly right now. >> i want to make a mention here that the department of homeland security has weighed in right now and they are saying at this point there are no signs of malicious activity at this point but we'll continue to monitor as to whether that changes as well. and as you heard off the top of this broadcast, the nyse trying to reopen but so far not reopening. you can see on your screen that nothing is effectively moving much. we're down 200 on the dow jones. nasdaq still trading, though. i want to bring in maggie lake, our cnn international business correspondent. we're trying to make sense of a lot of things happening and as you were coming up to the set i
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was asking paul and rana about this coincidence or not of the "wall street journal" web site going down, united airlines going down at the same time the new york stock exchange saying a computer glitch has brought down the stock exchange as well. what are you hearing? >> i think we don't know what's happening. but what matters is investor psychology. they are talking about the fact that is this a coincidence? it's that confluence of events that always unnerves people. it's never just a moment where you see anyone getting into trouble. it's when you have several things happening at the same time. but it's important to point out. and veteran traders on the floor are saying this, we have seen this before, even before we had computers, we had telephones and we had ticker tape, they also failed, we had timeouts then we resumed. this is a very, very sophisticated market when it comes to getting itself smoothly up on its feet. so there are questions to be asked and this is going to unnerve people. it's also important to point that out. they have a plan in place for
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when they reopen so it's not a situation where anyone should panic if they have trades pending, they will let you know what happens. we've been here before. >> but confidence is the issue. when you have to china market collapsing, people aring looing at the u.s., this is supposed to be the safe market, everything is supposed to run smoothly. >> but china, that's because of the 30% freefall of the stock prices in china. that's entirely driven by financial crisis in china this morning so let's not connect that at all. this is a bizarre coincidence of three organizations stuffing a computer glitch. i'm going to ask you when we come back from the break about flagging problematic stocks, whether that makes difference to all of this and also that the dhs has come in and said there's no sign of malicious activity at this point because a lot of people would ask could this be a test run and not perhaps malicious yet. so we'll think through those questions in a moment and be back right after this.
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i want to welcome our viewers in the united states and around the world. there are three major problems going on right now in the united states and they all have to do with computer glitches and they are all terribly important. what you're seeing on your screen right now is effectively a halt in trading on the new york stock exchange. the word from the exchange is that it is a glitch. a computer glitch of some kind that they are working feverishly to remedy. the "wall street journal" as well for its part, this is what you see when you log on to its web site. clearly some kind of glitch because that is not the "wall
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street journal" web site. and then also within the last several hours united airlines reporting major problems, computer problems that really brought a thult a lot of their operations as well. many agents handwriting some of their ticketing today again because of some kind of computer glitch. at this point we are not clear at all if there is any connection between all three of these major united states organizations and the problems that they are having but it does give pause, so much so that even the government is weighing in saying hold fast, we're not getting any report or thought at this point that there's anything malicious going on. but i want to go to remember ne our aviation correspondent live from washington, d.c. with more on the story regarding united. i asked alison kosik, rene, down at the new york stock exchange whether anyone there is talking about the other problems going on with the other organizations
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and she's not hearing that. is united hearing about what's going on elsewhere and are they bring that into their fold as well? >> that's unclear. i know that they are currently trying to work out the rest of the kinks. i actually just second ago received a statement from united fleshing out more about what was behind this massive computer issue and in their words they say "an issue with a router degraded -- well, it's not that statement that we have up here. this one just came to me here guys. so it's an issue with a router degraded network connectivity for various applications causing the issues. so it sounds like there was a router, a problem with their router which affected the way the computers were able to communicate with each other. so that's the new nugget i've just received from united but this was massive. we're talking about 4900 flights that were affected worldwide. so this went beyond the united
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states all of them had to be grounded before they were able to get the. ises back online and now we know from united that there was an issue that degraded the network connectivity. how their computers were communicating with each other. we know the makeup of these systems that there's several computers that have to talk to one another in order for certain information to make its way from the pilots, from the cockpit back to the ground and so there are a lot of potential vulnerabilities for failure, enusually. >> everything back to normal? >> for the most part. flights are still taking off at this point but just because this computer issue is resolved, it doesn't mean the problem is solved. the damage has been done. we'll see a ripple effect, there are delays, they'll have to deal with the issue of crews that
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have run out of hours. they have to replace crews so you're talking about other delays for missed connections. so the headache is only beginning now so, yes, the problem has been resolved but there's problem number two which is probably a larger problem where passengers will still be dealing with delays, this could last the rest of the day, it could bleed into tomorrow before things get back to normal and people can get to their destination the airline understands that. they are offering waivers to flyers to make things easier for them so they don't to pay for a change fee because of this mess the due to this computer problem. >> rene marsh reporting live in washington. as you look on your screen and it says computer glitches hit the nyse, the new york stock exchange, united airlines and the "wall street journal," the nyse is a big, big problem for a lot of people. that can send jitters across the globe, in fact. it's something that's important
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enough for the department of homeland security to weigh in on. before i get to that topic i want to read a tweet if i can that was sent out by the new york stock exchange and it's one of two "we're experiencing a technical issue we are working to resolve as quickly as possible. we're doing our utmost to produce a swift resolution and will be providing further updates as soon as we can it echoes an nyse spokesperson statement that came out just a short time ago as well saying we're experiencing a technical issue, trying to resolve it as quickly as possible, providing further updates so we can do our jut most to provide swift resolution, communicate thoroughly and transparently and ensure a timely and orderly market reopen. our justice correspondent pamela brown is standing by live in washington. there is a reason, pamela, these statements and tweets are coming out fast and furiously. 35, 45 minutes now almost of
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this stoppage on the nice can be global ramifications and the government has taken note and is talking about this. what is the department of homeland security doing and saying about this? >> right now we can tell you the department of homeland security is saying it doesn't appear at this point there was a malicious attack affecting the new york stock exchange and also these other issues we're seeing with united as well as the "wall street journal." they're saying at this point it looks like major software glitches that we're looking at. but i can tell you that immediately when this happened this caught the attention of federal law enforcement, of department of homeland security officials, particularly those who deal with cyber issues because they're acutely aware of the threat we face, the hacking threats. we just saw it recently with the major opm hack where as u.s. officials believe, chinese hackers were able to steal data from millions of people so this
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caught their attention but at this point the belief was this was a big software glitch we're seeing. it's ironic it's happening around the same time but they don't see any reason to believe this is a malicious attack at this point. and that could change. ashleigh? >> pamela, keep an eye on it and alert us if there's a change. in the meantime, being to the new york stock exchange right now where our business correspondent alison kosik is standing by live. you have updated reporting for us, allison? >> i do. as you said we are watching the clock stop trading here at the new york stock exchange has been halted about 45 minutes now. trading just stopped. everything is frozen. i walked down the floor and talked to traders. they're playing video games at this point wondering when trade willing resume. they're just as surprised as we are. i say sort of because before the opening bell rang, the new york stock exchange sent the traders
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a note with a pdf of 220 stocks of what were considered problematic stocks. meaning these were stocks where you couldn't end? an order, whether it was to buy or sell. these stocks run the gamut. they're retail stocks, carpentry stocks, automotive stocks. they're all over the place. and one of the traders i talked with says he saw problems in -- talking about technical problems before the bell rang saying there was a problem with the data feed, that systems weren't reading new york data. that it was kind of a hairy situation this morning but then everything went off well. the thinking is that once these list of stocks, possibly one of these stocks that traded may have "tripped the wire" and caused this technical problem that we've come to now, ashleigh. >> alison, stand by for a moment if you will because we are juggling these three stories. the new york stock exchange, united airlines and also the
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"wall street journal." all three organizations suffering some kind of computer glitching that has caused stoppage or severe disruption in their operations today. i'm told the "wall street journal" is now partially back up and running. i don't know if we have that shot. if grow to the "wall street journal".com, it had a big "oops" and it didn't look very official. it looked like a big problem had befallen the "wall street journal" oops 504. i forgot 450. something did not respond fast enough. that's all we know. so now apparently the page looks like this. at least there's no "oops. " some people are seeing the white page. other people are seeing this page. i can't read the small print in the best of times with knees guys and i can't read it on the tv screen. but it looks for all intents and purposes like things may be up and running, headline "trading halted on the nyse" that's the most recent headline.
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i want to bring in paul la monica. i know you have your sources. has anybody been able to talk about the "wall street journal"? >> well, the "wall street journal" it looks like it's the home page. you had that 504 message. then it became blank but i don't know if you want to focus in on that or not. this is the actual story about the market being halted right now. so people -- >> is it updated? >> it's updating, trading halted on nyse so clearly withsj site is not entirely down. so that's one potential positive there. but we have no idea why their home page went down. >> here's what it looks like when you refresh. it looks like for all intents and purposes the standard issue except for the top line. "wall street journal".com is having technical difficulties. >> you're going through a search engine or social media you can get individual stories. >> but if grow to you'll get the blank page for the most
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start. >> exactly. >> so when we started this broadcast it was a little worrisome that there were these three extraordinarily coincidental and i'm using the word coincidental, maybe not. but it looks coincidental that these three major american organizations were suffering from newter problems. >> and it brings up the fact of just how dependent trading is on computerized systems. 80% of trading is done through computer programs. when technology goes down it can move global markets. i have no doubt that that probably will happen once the systems come back up. >> we're now at, you know, let's see, 52 minutes, i think, since things froze, maggie. the reverberation, i can't imagine, haven't reached global markets. >> oh, no, they will. what's worrying me more, ashleigh, after 9/11 so much effort was put in to make sure there were contingencies that something could knock the market off line. they spent months and millions of dollars doing that. i think there was a great deal
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of confidence. in fact, the new york stock exchange was standing up proud when the nasdaq had computer glitches. the fact that it can go offline like this and that it's still vulnerable despite all the efforts, even on a federal level, that the market is vulnerable to a computer shutdown has got to be a warning shot. security experts have always worried ant this. now we all know it. >> isn't that effectively what the nyse trumpets itself asing? sort of impervious to this kind of cyber terror? >> they've had problems before, even if it's not crime or terror. they had glitch, we had the flash crash in 2010 when you had some high-profile companies that went down to a penny per share if you remember that. >> and not crime and terror related? >> it was just an actual fat finger glitch that we have been hearing about. >> the difference we'll see today though is when they go to reopen there are human beings that alison said are playing video games right now waiting to see what happens. those human beings are professionals and they will help the market open in an orderly
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way. when it's just left to computers, you'll flood once it reopens again. this is why they say you still need human beings at the controls. >> i'm going to tell our viewers in a moment. we'll go back to the new york stock exchange but you have to settle something for people who are watching their screen and seeing numbers constantly moving. so we were at why us in the 200, now we're at minus 193, but we're frozen. how does that work? >> because there are still other platforms that are working. the nasdaq is up and running and it trades nyse-listed stocks. you have other computer platforms that are still working. >> apple, microsoft, intel and cisco are huge companies in the dow that trade on the nasdaq. that's why they're still moving. so not everyone on wall street is playing candy crush saga. [ laughter ] >> the entire system is not shut down. there is still trading going on. >> just so that everybody with a 401(k) throughout who's freaking out at this point, those numbers you're seeing on your screen solely reflect every other index, not the nyse index. it's frozen shut and there is no
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movement anywhere. >> if there's any comfort here because you are still seeing the dow move and other stocks are moving. you haven't seen much of a pullback since the trading halt. this was a bad day to begin with that had nothing to do with glitches. greece, china. the so things haven't gotten worse. >> thanks for that. >> small comfort. [ laughter ] >> paul la monica, you're the hero here. stay here if you can. i have a couple of other questions. after the break i want to ask certainly more about the nyse and when will it get back up online. because 50 minutes is massive, especially when you do microtrading these days. back after this. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets.
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what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.
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breaking news as we approach the bottom of the hour. it has been almost one hour since the new york stock exchange effectively froze in place. i want to welcome our viewers in the united states and around the world. i'm ashleigh banfield. we're covering not only the breaking story of the new york stock exchange suffering some kind of computer glitch that brought trading to a halt but also computer glitches that have affected two other major organizations in the united states -- united airlines that for some time this morning brought down dozens upon dozens of planes and, in fact, had to start issuing boarding passes by handwriting them. that ground stoppage was a major effect, in fact. we're told now that things are back up and running at the united airline because that the
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reverberations will take some time to shake out. as you know, the connections, etc., will all be affected by what happened at united airlines. again, a computer glitch the reason far ground somage. if you can see on your screen, the new york stock exchange and united were joined by the "wall street journal" as well. anyone trying to log on to was met by a strange white page with a bigger or are message saying "oops" on it. in the last few moments that's somewhat resolved. some people will be able to access parts of the "wall street journal," certain stories on the "wall street journal." but i'm not sure is completely resolved at this point. anyway, there is a massive fallout when a major stock exchange like the new york stock exchange can't move for now effectively one hour. our business correspondent alison kosik is standing by live. she joins me at the nyse. i know you've been talking to your sources, do we have any more information on what's happened there? >> funny you asked that.
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i was talking with traders. they said we're sitting here in the middle of an information vacuum wait to hear from the myself what nyse to hear what was the next step. but we gotten a indication that all was not well before the opening bell today. the new york stock exchange e-mailed to all of the traders at the stock exchange. with it, 220 stocks that i've got in my land the stock exchange was saying that there were problems with these stocks. they didn't say what, but traders knew that you couldn't sell or buy these 220 stocks. all went well at the opening bell then you had a technical glitch. i want to make it clear, though. the new york stock exchange systems are down but new york-listed stocks are still being traded on other exchanges like the nasdaq and something called arca, that's an all electronic exchange. so trading is still going on for
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new york-listed stocks, you're just not seeing business going out of the new york stock exchange. meaning traders, who by the way, a lot of the tradings, 82% of the trading done here at the new york stock exchange is electronic and they run around with these little hand-held devices. they can not make any trades coming or going on those hand helds from this building for sure. ashleigh? >> we toggle often, alison, between stocks and the time of day. the time of day is 12:303 cl12:n time which marks the one-hour point since the nyse halted its trading. let us know when you speak to your sources again to find out other details if you can. in the meantime, i want to go national on this because when these things happen -- and they seem terribly coincidental at this time, but one can never be certain and the government takes notice as does the department of homeland security. that's why jim sciutto, cnn's chief national security corresponde correspondent, joins me now to
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talk about reaction from the department. what more are they saying now, jim? >> i've spoken to a dhs official who says there are no signs of malicious activity at this time regarding the attack on the new york stock exchange and similarly with united airline. in terms of context, however, you make the point. one thing we know is that u.s. firms, u.s. governments institutions are under a constant state of cyber attack. the leading culprits tend to be china, russia, as well as hackers in those count these sometimes affiliated with the government and sometimes not. there are other countries as well who do cyber attacks on u.s. firms. france. americans don't know about it, but in terms of a business context as opposed to a national security context, a lot of hacks and cyber attacks come from franz even so when you have a confluence of attacks on nyse, on united, on "wall street journal," you have to ask that
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question. so that's why i call dade which he is immediately but their answer was straightforward: no signs of malicious action. but these are things that develop over time and that could change but their current status is they don't see a cyber attack behind us. >> also as we continue to hear from the various organizations and certainly united telling rene marsh that this is truly a router issue that this necessarily wasn't anything other than something that was local to united airlines. still let us know, jim, if there's any update to that story. we appreciate that. i want to also read to you again if you're just joining us, the new york stock exchange being halted over an hour now and the exchange very quick to put out some information on this, whatever they could put out and we have this attribute to believe a spokesperson for the new york stock exchange. "we're currently experiencing a technical issue that we're working to resolve as quickly as possible. we will be providing further
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updates as soon as we can and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently and ensure a timely and orderly market reopen. all of this as united air had grounded 4,900 of its flights because of a computer glitch as well, suggesting this is really a router issue. we don't necessarily know what the new york stock exchange issue is at this time and we're still waiting on the "wall street journal" for a statement as to what they think may have gone wrong. they're partially up and running at this point and much of their sterile accessible at joining me on the phone is rob lee, an incident response director in austin texas. can i get your reaction to this off the bat? >> hi, ashleigh. honestly, this does not have any indication that this is anything related to malicious or hacker
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activity. technical glitches, the type of down time that sometimes comes from this could be phenomenal in trying to recover from it. if it was a hacker that hacked, more likely than not, united, the new york stock exchange would be probably more silent at this point not giving any indications that it's a technical glitch versus still trying to collect information during the initial stages of a hacker attack. >> just quickly obviously the department of homeland security saying there's no sign of malicious activity at this time but all happening within the same two-hour period. does it give you pause even though united has said this is a routing issue, we're not clear what nyse is at this time and we don't know what the "wall street journal" will say, although they're back up and running. does this give you pause this could have been something considered a dry run? which is what some people are concerned about, that they'll be
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testing before anything more major? >> well, that's a very good point. but this is not -- does not follow the typical patterns of even the type of attacks you generally see from china, russia, and other countries that would potentially want to do this. those count rhys and entities trying to do hacker type attacks are trying to do it for monetary gain or intellectual property gain. the question you would have to then ask if there was an attack by one of these organizations or entities, criminal organizations is are what -- is going to be gained by that attacker taking these sites down. it could be a dry run. does it give you pause? at this point no because of the statements on how strongly worded they are that these are technical glitches and that dhs was immediately coming out saying there's no signs of hacker activity.
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if it was, you would probably see more silence as they're trying to figure out how the word, their messaging, if it was an internet-based attack they were currently dealing with. >> rob, thank you so much for that. i appreciate it. i introduced rob by giving the last statement that the new york stock exchange had put out saying we'll give you the information just as soon as we can but that was an outdated statement already. so let me go through a few more releases flow the nyse. the nyse is now saying the outage is not the result from a cyber breach and here's what they're treating out. "the issue we are experiencing is an internal technical issue and is not the result of a cyber breach. we chose to suspend trading on the nyse to avoid problems arising from our technical issue. the nyse listed securities continue to trade unaffected on other market centers which is why you see numbers still moving some stocks trading on other
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platforms and other platforms not affected as well. for instance the nasdaq has not frozen, everything is business as usual. but a lot more to come. including just what kind of an impact this could have around the world and for you if you hold any stocks, if you have a 401(k). we're at an hour plus now with absolute frozen zone. does that make a difference to you? back right after this. it takes a lot of work... to run this business. i'm on the move all day long... and sometimes, i just don't eat the way i should. so i drink boost to get the nutrition that i'm missing. boost complete nutritional drink has 26 essential vitamins and minerals, including calcium and vitamin d to support strong bones and 10 grams of protein to help maintain muscle. all with a great taste. i don't plan on slowing down any time soon. stay strong. stay active with boost. now try new boost® compact and 100 calories.
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welcome back, i'm ashleigh banfield. i want to welcome our viewers from the united states and around the world. major glitch, you might say, on the new york stock exchange, for over one hour halted trading. numbers have barely moved because of some kind of computer glitch at the exchange. they say they're working to fix the problem, but ultimately it came at a time when there were two other major glitches affecting other major organizations in america. united airlines downing thousands of its planes a ground stop effectively because of computer problems. boarding passes written out by hand. united saying that was a routing problem and that was it was individual to that airline and at the same time the "wall street journal" also closing down. no one able to get on to the web
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site. a bigger or are message greeting peek. while there was brief, there's no explanation from the "wall street journal" as to what kind of computer glitch took down their web site "wall street journal" now effectively back up and running but you can see on your screen right now the problems persist for the new york stock exchange. in fact, the new york stock exchange just sending out a few more tweets to update their situation saying it is an internal technical issue and not the result of a cyber breach. of course this being what many people were concerned about. coincidence? three major organizations all with the same kind of problem, all within the same few hours, each coming out to identify as much as they can what the problems were in each of these circumstances. the fbi for its part also weighing in on this and let me read to you what the fbi has now sent out in a statement regarding the new york stock exchange and i'll quote. "we've reached out the the nyse and offered our assistance. they have said it's technical
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glitch, no further law enforcement action is needed at this time. the fbi will continue to monitor the situation. for its part, the "wall street journal" only saying in a statement that the is having technical difficulties, the full site will return shortly. i want to bring in some of our guests who know a thing or two about what happens when these kinds of very strange happenings go on. not to suggest that anybody has any answers. rana a a rue haar, maggie lake and paul la monica. paul, with the "wall street journal," did you say you were just as we were coming on air able to access the site but in a different way? >> the home page appears to be available if you type that in or have that bookmarked. you get the wsj site but it's redirecting you to a different url and the message is still up saying the site is having
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technical difficulties. so the whole home page is there but it's not completely up to its 100% the way you would normally see fit they weren't having glitches. >> and maggie, important to note that the new york stock exchange is going on 1:15 frozen, there is still trading going on elsewhere. in fact, the nasdaq put out a statement saying we're fine. we're up to it. >> they are. and those nyse listed stocks are trading elsewhere. not only on the nasdaq but also on other electronic platforms that retail investors don't use. other institutional big banks use those. so trade is going on. but the new york stock exchange is a very critical component. i'll tell you, ashleigh. they say it's an internal technical problem. it's taking them a long time to get to the bottom of it. so clearly they may not know exactly what's happening but it's taking them a long time to system test. they don't want to reopen and have a problem again because
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this is going to go to the core of confidence paul brought up earlier. investors have been through a lot. the financial crisis, the flash crash. they're nervous. they don't that sort of full faith in market function, i think, they used to. so when something like this happens, officials are very aware of that so they don't want to have a false open. they need to test the entire system with all of the participants first before they reopen. so i have a feeling even if they've identified it, that's why it's taking so long. they want to have all the boxes checked before they open for trading. >> rana, i want to ask you something about investor confidence and trust and how the pros may differ from the ashleigh banfields of the world who don't feel quite as confident. but if you can hold that thought i want to go to rene marsh. we're juggling these three stories, not only the new york stock exchange and the reverberations from that freezing that's over 1:15 long, but also the "wall street journal." its web site going down due to likely a computer glitch and we should also mention that it is
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back up as paul la monica just reported to us. there's a redirect and the full site available for the "wall street journal" no comments yet from the "wall street journal" so we're awaiting that as well and i'll get those to you as soon as they come to us. with regard to united airlines, aviation correspondent rene marsh is live in washington, d.c. if i got the number right, i know i had it in front of me, but about 4,900 flights were grounded, ren say in the last report you had was that they were saying this was a router issue? what more are you learning? >> we are learning that this worldwide problem united airlines operations according to a source, essentially, their teams have investigated this and they have determined it was not the work of hackers. there was no hacking or cyber attack involved in this situation whatsoever. that's the determination that has been made by team investigating the source of the
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probl problem. they are saying this is solely an issue regarding this router that affected how the computers were communicating with other compute computers. as it relates to whether their computer problems was connected to the new york stock exchange, i'm told by this source there's no evidence that there's any connection between what happened with united airlines and what we see currently happening with the new york stock exchange. so getting more clarity as far as what was behind that very widespread issue but, of course, as you know, ashleigh, the damage is already done. lots of delays, lots of people still struggling to get to their destination as we speak. >> you can't ground 5,000 flights roughly without having a really bad day across the country and around the world as well because those flights may have had international connections as well. rene marsh, stand by if you will. i want to hopscotch from you to the white house still in d.c. where jim acosta is standing by.
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jim, i talked to jim sciutto, our colleague, earlier who had reaction from the department of homeland security. are we getting reaction from the white house with regard to these three major developing stories? >> a little bit ashleigh. a white house official says the president has been briefed on the situation. they say the treasury department and white house officials are monitoring what's happening at the new york stock exchange but they say for further questions they're referring us to the stock exchange and the securities and exchange commission. i will say, though, that, you know, coming up at the top of the hour, ashleigh, we'll get a briefing at the white house and the white house press secretary josh earnest is likely to be peppered with all sorts of questions because of the very strange nature of all of these glitches we've seen this morning. not only the new york stock exchange but what happened at united airlines and even at the "wall street journal" and they are very mindful of the cyber threat that exists right now this day in age. particularly at the white house. they've had cyber attacks on the white house.
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and so this is something they'll monitor closely and we'll look for more developments, more information as the day goes on. but at this point they appear to be not very alarmed at this point and relying on what the stock exchange, united airlines and the department of homeland security says, that there's nothing malicious going on and that these are individual glitches, that these three very important entities are dealin with right now. at the moment the president being briefed and they're watching the situation closely. ashleigh? >> that will be a great press briefing. i'll watch that. >> i think so, absolutely, yes. i'll be there. >> i think you will be! get your mic tapped up ready to go. jim acosta live for us on the north lawn. thank you for that. after the break, what happens when everything goes back to normal? what happens when the nyse opens up the spigots again and trading resumes? how will that work and which way will the numbers go? many wrinkle creams come with high hopes, but hope... doesn't work on wrinkles. clinically proven neutrogena® rapid wrinkle repair
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welcome back, this is cnn's live and breaking coverage of three major computer glitches. the new york stock exchange, united airlines and the "wall street journal" all effectively affected by what they're saying are computer glitches. the worst still a big problem, that's the new york stock exchange. trading has been halted for an hour and a half so we're watching to see what the white house we'll see so we're keep an
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eye on that. so what happens when it starts trading again what's going to happen, rana, when the spigots are opened and trading happens. is it going to be business as usual or will this have a massive effect on people's trust? >> i think the markets will come back open and there will be a dip then people will worry about go back to worrying what about what they were worrying about before which is china and europe. volatility in the first half of this year has been more than all of last year. so markets are on a hair-trigger already before this happened. >> maggie, there's difference between the pros who alison kosik noted they were on the floor of the stock exchange playing video games and are not the least bit worried and me very worried about my 401(k), the effects of greece and the other european union countries
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and we're very concerned about this. will the average investor see an impact? >> hopefully not. they should sit back and let the professionals do it. this is not a time to trade on fear or emotion because you'll get dragged into whatever volatility or bumps happen. these professionals have been through a lot of this. they have seen it, they know what to do and they will have much cooler heads. if you're watching this at home, you don't want to jump in the second hour this opens and get involved and do anything. don't worry about your 401 today. we say be diversified, have a long-term perspective. you don't want to do anything based on this. >> don't even look at it. >> that's exactly right. >> except for quarterly, right? >> on on this particular kind of day because it's going to be too hard to gauge. when you push that button it doesn't automatically happen. you need things to settle first. the nyse did say if you were trading and you're at home this
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morning it said all open orders will be canceled. so they'll work it out and tell you how this will go if you have a trade pending. if you don't, stay out. >> stocks are still a great place to be, by the way. >> really? i think the mattress is a great place. call me crazy. >> if you think of -- to your point, robin, think of u.s. blue chips, they've had such aen ifnal phenomenal run since the great recession you'd be missing this. people are going to buy iphones, go to starbucks, buy shoes from nike. >> not suggesting for a moment that the s.e.c. is sitting this out but i haven't heard boo from the s.e.c. >> unfortunately the s.e.c. is slower to react. this isn't necessarily to say they're not doing anything. i would have to think they are in constant exact the new york stock exchange about what is going on right now. but they haven't said anything publicly at least to cnn at this point but they're going to have to. >> or maybe they like the statement from the fbi saying
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"we're good, we've called q. zblts the s.e.c. has been hit by budget cuts for the past few years and that's a big problem. it's easy to pick on s.e.c. but i don't envy their head at all. she has a tough job. >> well, we are awaiting a live news conference, you can see the small box on the bottom right-hand side of your screen. this will be a lively press conference from the press room at the white house and we will have our top people on it for you. thanks so much for riding this one out with us. we'll continue to watch the story here on cnn. i'm going make way for dana bash, she'll take over. she has wolf's show handled from here. hello, i'm dana bash in for wolf blitzer. it's 1:00 p.m. in washington, 6:00 p.m. in london and 8:00 p.m. in jerusalem. wherever you're watching from around the world, thanks for joining us. we begin with breaking news
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from the new york stock exchange. just after 11:30 east they were morning, the exchange halted trading in all stocks following what the exchange called technical issues. adding to the intrigue, the "wall street journal's" home page stopped functioning about the same time and earlier today united airlines computer systems malfunctioned. the department of homeland security tells cnn there is no sign of malicious activity in any of these vents. the white house press briefing is expected to start at any moment and we'll bring that to you as it happens. but let's discuss all of this. we have our reporters covering this in the seconds this is happening and things are changing second by second. you see elise labott, our global affairs correspondent at the state department, our aviation and government regulation correspondent rene marsh is here and from the floor of the new york stock exchange, cnn business correspondent alison kosik. alison, let's start with you. it's certainly not the way the floor of the


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