This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The 5 Dumbest Things on Wall Street This Week: Oct. 5

1. (More) Fat Fingered Foolishness

Average investors may be fleeing the stock market on account of the 2010 May flash crash, Facebook's (FB) IPO fiasco and Knight Capital's (KCG) collapse, but we here at the 5 Dumbest Lab simply can't get enough. You see, those kinds of electronic trading glitches are good for our business because we literally feed on Wall Street stupidity.

As for the exchanges, well, not so much.

Our schadenfreude streak continued this past week when Nasdaq OMX (NDAQ) cancelled 168 "erroneous" trades of Kraft Foods Group (KRFT - Get Report) totaling almost 30,000 shares that had pushed the food maker's stock up about 29% in a single minute. Kraft shares spiked as high as $58.54 after opening at $45.44 immediately after the stock opened for trading Wednesday morning. Kraft stock finished the turbulent day down 1.2% to $44.87.

"While it is difficult to say with any degree of certainty, it seems that this might be the case of mishandling a buy order through a 'fat finger' incorrect limit or using a far too aggressive order type or algo," said Mark Turner, head of U.S. sales trading at electronic broker Instinet in an e-mail to Bloomberg.

Turner added that the exchanges, which in this case included NYSE Arca, Nasdaq, Direct Edge and BATS, handled the error in accordance with their error guidelines.

Good for them. We're glad to know they can finally control a major screw-up once it gets started.

As for stopping them altogether, well, not so much.

And we're fine with that!

--Written by Gregg Greenberg in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
ABT $46.54 -0.66%
AXP $77.85 0.01%
HPQ $32.50 -1.99%
KRFT $83.99 -0.43%
AAPL $125.01 -0.63%

Markets

DOW 17,841.98 -86.22 -0.48%
S&P 500 2,080.15 -9.31 -0.45%
NASDAQ 4,919.6440 -19.6830 -0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs