Stocks Face Full Plate Friday After Wild Selloff
NEW YORK (TheStreet) -- In one of the more remarkable days in recent memory on Wall Street, stocks broke down Thursday afternoon, with the Dow rapidly losing nearly 1,000 points before recovering to close down about 350 points. The wild move, being blamed on a trading error, punished a market already wounded from a European debt overload.
Observers will continue to dissect what happened during Thursday's history-making selloff into the morning and beyond, but they'll also monitor other market-moving items before Friday's opening bell:
"If we get good news on those three things ... I think this reversal we saw in the last half hour or so might continue at the open," said Phil Orlando, chief equity market strategist at Federated Investors. "We got oversold, stupidly oversold at one point. But even before [the near 1,000-point drop], we were oversold. People were selling on emotion," later adding, "maybe, who knows, we'll actually start paying attention to fundamentals."
But as quickly as that massive plunge happened around 2:40 p.m. EDT on Thursday, stocks rebounded and recovered off their worst levels. CNBC began speculating that some sort of computer system or human error may have been at the root of the steepest drops. The New York Stock Exchange reported that it saw no error from itsr vantage point.Rumors also centered on possible erroneous trades for Procter & Gamble (PG) shares, which imploded in baffling fashion during the accelerated decline. By late Thursday, the Nasdaq Stock Market, which also reported no system problems, said it would cancel trades between 2:40 p.m. EST and 3 p.m. EST of "greater than or less than 60% away from the consolidated last print in that security at 14:40:00 or immediately prior." NYSE Arca, the electronic platform of NYSE Euronext, said it would do the same.
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