UPDATE: We still don’t know what happened–something about “erroneous orders routed to the exchange”–but NASDAQ has now cancelled all Google trades from 3:57 ET to 4:02 ET. And some traders aren’t happy about it..
EARLIER: Market up 485 points (5%) and Google (GOOG) up strong most of the day. Then, five minutes before the close, according to both Yahoo and Google Finance, it spiked briefly…and then tanked. It closed down $40 (10%).
And now, unless Yahoo’s data is wrong, Google’s up $68 (20%) in the aftermarket, to where it was trading most of the day.
Here’s a minute by minute breakdown:
*UPDATE: NASDAQ is breaking the end of the day trades in Google. Here’s the official notice from NASDAQ:
NASDAQ Operations has recently updated the status of the following NASDAQ Market System(s) to the NASDAQ Trader website:
Pursuant to Rule 11890(b) NASDAQ, on its own motion, has determined to cancel all trades in security Google Inc Cl – A “GOOG” at or above $425.29 and at or below $400.52 that were executed in NASDAQ between 15:57:00 and 16:02:00 ET. In addition, NASDAQ will be adjusting the NASDAQ Official Closing Cross (NOCP)and all trades executed in the cross to $400.52. This decision cannot be appealed. MarketWatch has coordinated this decision to break trades with other UTP Exchanges. NASDAQ will be cancelling trades on the participant’s behalf.
Reuters: A spokeswoman for exchange parent Nasdaq OMX Group (NasdaqGS:NDAQ – News) told Reuters in an email the “erroneous orders” that caused the abrupt plunge “were triggered by orders routed from another exchange.”
CNBC’s explanation, courtesy Allen Stern/Centernetworks/Viddler: