Market Update: Dow Sagging at Midday, Nasdaq Slightly Lower

(Updated from 11:16 a.m. EDT)

Stocks remained in the red at midday, as investors continue to be concerned about the rising price of oil and foreign currency.

Lately, the Dow Jones Industrial Average was lower by 115 to 10,673, after popping higher at the opening bell. The blue-chip index was weakened by Coca-Cola(KO - Cramer's Take - Stockpickr) and some of its tech components.

Boeing(BA - Cramer's Take - Stockpickr) was serving as one of the Dow's few pillars of strength, up 3.7% on news that it raised its fiscal 2000 free cash flow estimate to more than $4 billion.

Meanwhile, the Nasdaq was down 25 to 3840, after yesterday's triple-digit gain. Profit-taking in the semiconductor sector, along with earnings warnings, were sending it lower.

Online auctioneer eBay(EBAY - Cramer's Take - Stockpickr) set a revenue goal of $3 billion in 2005, implying a revenue growth rate of about 50% annually over the next 5 years. The stock was lately up 4.3%.

Elsewhere, the broad S&P 500 was falling 15 to 1445, while the small-cap Russell 2000 was shedding 3 to 521.

In company news, Lehman Brothers (LEH - Cramer's Take - Stockpickr) gave life to the recently beaten down financials, after posting third-quarter earnings of $3.37 a share, beating the 10-analyst estimate of $2.75 a share and up from the year-ago report of $2.20 a share. It was up 0.3%. TheStreet.com wrote about Lehman's earnings in a separate story.

The American Stock Exchange Broker/Dealer Index was down 0.4%.

Informix(IFMX - Cramer's Take - Stockpickr) was punished 13.3% after it cautioned investors after last night's close that it would report a third-quarter loss between 5 cents to 8 cents a share, missing the five-analyst estimate of a 2-cent profit. The company also warned that it would post break-even results in the fourth quarter, also coming in below the five analyst estimate of a 6-cent profit.

Estee Lauder(EL - Cramer's Take - Stockpickr) wasn't looking pretty, after Merrill Lynch cut its first-quarter and fiscal 2001 top-line growth estimates. In a research note, analyst Heather Hay said the revisions were a result of weakness in the euro and other currencies.

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Sector Watch

TheStreet.com Internet Index was 1.6% lower, with Amazon.com(AMZN - Cramer's Take - Stockpickr) losing 7.7%.

The American Stock Exchange Oil Service Index was up almost 1.2%, as the government mulls tapping into U.S. oil reserves to possibly lower the steep price of oil. ExxonMobil(XOM - Cramer's Take - Stockpickr) and Chevron(CHV - Cramer's Take - Stockpickr) were both posting gains.

The Philadelphia Stock Exchange Oil Services Index was also up 1.9%, with Halliburton(HAL - Cramer's Take - Stockpickr) up a modest 0.4%.

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Bonds/Economy

Bond prices are falling as oil has resumed its record-setting climb. Continuing the recent trend, long-term yields are rising more than short-term ones, indicating that bond investors are worried about faster inflation as a result of rising energy prices.

With oil trading over $37.50 a barrel for the first time in 10 years, the benchmark 10-year Treasury note lately was down 2/32 at 99 4/32, lifting its yield to 5.867%. The 30-year bond was faring worse, lately down 16/32 at 104 4/32, boosting its yield to 5.953%.

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