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Market Update: Dow Bouncing Back, Nasdaq Trading Up in Afternoon Action

<LI>Oil stocks trading lower.</LI> <LI>Lehman down despite strong earnings.</LI> <LI>eBay higher on strong growth outlook.</LI>


Dow Jones Industrial Average was bouncing back in afternoon trading. It was lately off 79 to 10,709. It had traded as low as 10,574 earlier this afternoon.


Nasdaq was lately up 37 to 3902, fighting back from earlier losses.

The Dow was earlier getting socked 178 to 10,611, with damage coming from a host of components. The worst performer was



, which was falling 4.5% and stripping 27 points off the blue-chip average.

Concerns about soaring oil prices and a weak euro have got the market on edge and investors have made it clear they are in no mood for more bad news, especially of the

profit warnings kind.

CNF Transportation

(CNF) - Get Report

was falling 8.7% to $22.88 after warning last night it sees lower-than-expected third-quarter earnings because of lower operating profits for its air freight unit.


(BA) - Get Report

was serving as one of the Dow's few sources of upside, rising 4.1% on news that it raised its fiscal 2000 free cash flow estimate to more than $4 billion. wrote a separate story on


Meanwhile chemical company


(LZ) - Get Report

was somehow avoiding a beating, lately up 6 cents to $19.75, despite saying its third-quarter and full-year earnings would fall short of previous estimates because of rising raw material costs and the strong U.S. dollar.

Online auctioneer


(EBAY) - Get Report

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 6.6%.

wrote about the growth targets in a separate


Elsewhere, the broad

S&P 500 was falling 21 to 1439, while the small-cap

Russell 2000 was shedding 4 to 519.

Lehman Brothers


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. The good news was outweighed by the weight of financials and the stock was lately down 1.9%.

wrote about Lehman's earnings in a separate



TheStreet Recommends

American Stock Exchange Broker/Dealer Index

was down 1.3%.



was punished 17% 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, which likewise comes in below the five analyst estimate of a 6-cent profit.

Estee Lauder

(EL) - Get Report

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. It was lately down an ugly 7.5%

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Sector Watch Internet Index

was 1.6% lower, with

(AMZN) - Get Report

losing 6.1%.


American Stock Exchange Oil & Gas Index

was down 0.6%, as the government mulls tapping into U.S. oil reserves to possibly lower the steep price of oil.


(XOM) - Get Report

was down slightly and



was posting a modest gain.


Philadelphia Stock Exchange Oil Services Index

was beginning to slip, lately down 1.8% wiith


(HAL) - Get Report

down 3%.

In keeping with the recent whiplash action, semiconductor stocks were taking it on the chin after a hot streak yesterday, which left them up 8% yesterday. Lately the

Philadelphia Stock Exchange Semiconductor Index

was falling 1.5%.

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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 to 99 6/32, increasing its yield to 5.86%. The 30-year bond was down 17/32 to 104 8/32, yielding 5.94%.

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