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Market Update: Dow Skids, Nasdaq Flatlining

<LI>Lehman beats earnings estimates.</LI><LI>Oil prices at new high, euro at new low.</LI><LI>Coke shaving points off Dow.</LI>

The market was churning near the flatline this morning. After futures spent most of the morning moderately in the red, the major indices were flip-flopping in early action. The

Dow Jones Industrial Average was down 43 to 10,747, while the

Nasdaq Composite Index was down 7.5 to 3858.

Yesterday, the Nasdaq posted triple digit gains, while the Dow lost 0.2%. leh

The broader

S&P 500 was down 10.4 to 1449.5, while the

Russell 2000

was 1.2 lower to 522 and Internet Sector

index was off 0.2 to 791.6.



(KO) - Get Report

was taking the most wind out of the Dow after the euro sank to a new low overnight. Coke was shaving some 11 points from the Dow, and was off 4.4% to$50.56. Coke does a big portion of its business overseas.



(BA) - Get Report

was contributing the most upside to the Dow after it raised its cash flow estimate for 2000 this morning.


(INTC) - Get Report



(CSCO) - Get Report



(DELL) - Get Report

, meanwhile, were some of the Nasdaq's most actives this morning. Intel continued higher after receiving two analyst upgrades yesterday. Dell was also higher, while Cisco was fiddling near break even.

United Technologies

-- a Dow component -- said it expects to meet analysts' estimates for upcoming earnings, despite a weak European currency that is cutting into profits.

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Sector Watch

Brokerage and oil stocks were pretty much the only bright spot on the NYSE this morning. Investment-banking powerhouse

Lehman Brothers


reported earnings far above estimates and also set a 2-for-1 stock split. Lehman was up 2.3%.

J.P. Morgan

(JPM) - Get Report

however, was 0.5% lower.


American Stock Exchange Securities Broker/Dealer Index

was up 0.5% after soaring 2.6% on the day yesterday.

Oil and natural gas stocks were sailing higher again today after U.S. drillers reported post-close yesterday that oil reserves were lower and crude prices rose to new highs. The

American Stock Exchange Oil & Gas Index

was up 1.4%, while the

American Stock Exchange Natural Gas Index

was 1.6% higher.

Semiconductors were tumbling after

ABN Amro

downgraded semiconductor stock

Texas Instruments

(TXN) - Get Report

this morning. Semiconductors had soared yesterday after Intel received upgrades from

Banc of America


Bear Stearns

. The

Philadelphia Stock Exchange Semiconductor Index

was off 0.56% to 1022.

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The 10-year Treasury note was lately down 2/32 at 99 4/32, yielding 5.869%.

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