Yahoo Finance

Our top story this morning, the global tech outages linked to crowd strike rippling through multiple business sectors. We've got team coverage of the outage and the incident here, Yahoo Finance's Jared Blickre and Madison Mills are here with more. Hey Jared.

Yeah, let's focus on the companies involved in these tech disruptions. First, crowd strike shares, they are plummeting off of the back of this tech disruption. Crowd strike CEO George Kurtz, he has apologized to customers, travelers, anyone affected. He's saying that the cause of the incident was a defect found in a single content update for a Windows host. In a statement Kurtz wrote that the issue has been identified, isolated, and that a fix has been deployed. Now on Microsoft side, shares are down too. The company posted to their Azure status page that they are aware of an issue impacting virtual machines running Windows client and Windows Windows server that are running the CrowdStrike Falcon agent. Now this may encounter a bug check and get stuck in a restarting state. So, they've also said that they received successful recovery reports from some customers. Now taking a look at some of the other stocks moving on the news, got to take a look at Palo Alto and Sentinel One, both competitors of CrowdStrike, they are rising.

And broadening this out a little bit, we are seeing disruptions reverberating across several sectors. I want to talk specifically about banks and retailers. So I'm going to kick it off with the big banks starting with JP Morgan. Speaking with our bank's reporter, David Hollerith declined to comment on the record, but on background he did have sources confirming that there were outages that made it difficult for JP Morgan employees to log on, and this is impacting the company globally. We know that Hong Kong staffers in particular already went home for the day, and this is particularly prescient at some of these firms that have really started to rely on private cloud software seeing these challenges. We also know that Deutsche Bank and S&P Global also facing some blue screen of death situations at their offices, which is impacting their ability to move forward with the work day. We're hearing from some hedge funds unable to process certain trades across the world. This is happening in Hong Kong, South Korea, and Singapore. I do want to move on though to some of the retailers. I just got a note in from Starbucks, particularly on their Starbucks Care X platform posting about some individuals experiencing an inability to order ahead. We are out to Starbucks to confirm that. Seeing some posts across X as well from individual stores saying that they are struggling to keep up operations today, specifically with regards to that order ahead option. We also know that McDonald's had to close 30% of its stores in Japan today following this outage. We will see what happens with these retailers throughout the course of the day in terms of their operations and the degree to which any of these disruptions could impact profits for the day moving forward, guys.

All right, and we are also hearing of some of these airline disruptions. Uh I was traveling back last night, fortunately missed some of the blue screen of death that you were talking about, Maddie, in my own experience. However, that doesn't take away from what we're seeing here rattling across and through the industry this morning. I've got updates for Delta, American Air and United Airlines. I'll start off with Delta as they have resumed some flight departures after they acknowledged this vendor technology issue impacting several airlines, not just them and businesses around the world. And it necessitated a pause, a ground stop and delays early this morning here. Delta's global flight schedule this morning was addressing this. You also have an update that came through from United Airlines saying that the third-party outage was impacting computer systems, including United, many other organizations worldwide. But some of those flights also resuming there. And then just to round out for the big three major airlines, let's go to American Airlines as well here. Earlier this morning, they identified the technical issue and they said as of 5:00 a.m. they had been able to safely reestablish their operation. And so we're going to see even more of these airline operators begin to gradually resume flights as they bring operations back to some normalcy here this morning. Sure.

Yeah, exactly. We're seeing some systems come back online, but I think the question that everyone is asking right now as so many people arrive at their desks on the East Coast, and then of course, over the next few hours on the West Coast, is exactly how far and why this outage has spread, what ultimately it means for the day-to-day, not only today, but also looking out over the next several days as there's lots of questions as how long it's going to take until we return to quote unquote normal operations. We have been digging in into the impact for and it could really impact you at home. We talked a lot about travel, we talked about banks, the retailers, even a name like UPS putting out a statement here earlier this morning saying that they do see the potential for delivery delays from the global tech outage. They did though, in a service alert here on UPS's website talking about the potential for the delays, but they did say that right now the network is operating and delivering in all areas. So here we are just about 23 minutes ahead of the opening bell, lots of questions about whether or not the exchanges here in the US are going to be impacted. We got statements from both the New York Stock Exchange and the Nasdaq. A spokesperson at the New York Stock Exchange telling Yahoo Finance this morning that the NYSE markets are fully operational and we expect a normal open this morning. From the Nasdaq, the Nasdaq putting out a statement saying that our European markets and US pre-markets are operating normally. We expect our US markets to open normally. And we bring this up because there were some hiccups when you take a look at what happened on a global perspective short while ago. Yeah, the London Stock Exchange is saying that their RNS service has now been restored, had some hiccups there shortly after the open and is now operating normally. So again, this is a story we will continue to track here given the massive fallout and lots of questions about what exactly caused it, how long this is going to be an issue and exactly the impact that it's going to have for you there at home.