I was puzzled on Monday morning at the pre-opening of the market.

So what the heck was the deal; Columbus Day? Why, before the market was even open, was the Dow up more than 200 points? Why was Netflix opening $10 dollars/share higher than Friday? ($118 on Friday to $128 Monday). How is this even possible? I called the Fidelity Active Trader guys to chat about it. First, the guy mentioned pre-market sales. I said; Ok; sure. That can boost a stock a couple of bucks; but $10… no way. You would need a volume of a million traders to boost a stock that much. So, then how? Then the man tells me, "A company can change the Ask price of a stock dependent on a major shift in the company." (Such as Netflix change where they are not going split off their DVD from their streaming business. Well for people that went long on Friday, expecting a rise that was good for them, But people who held shorts on Friday would have had a rude awakening (although the stock dropped more than $10 anyway on Monday).

So, companies can manipulate their stock prices over night? I know they can perform 'splits' but I didn't know they could just boost their stock price at a whim.



Any thoughts about this? And why did the DOW open more than 200 points higher on Monday morning?