(Updated from 10:17 a.m.

The

Dow Jones Industrial Average was making wild swings this morning. It was lately up more than 75 points after having been deep in the red earlier today. The

Nasdaq Composite Index, which lost more than 6% of its value yesterday, had edged into positive territory.

During one of the nastiest sessions on Wall Street in recent memory, the major stock market indices tested news lows yesterday. The first watermark to go was the 1700 benchmark on the tech-heavy Nasdaq, followed by the 9500 yardstick on the blue-chip Dow. In recent trading, the indices were well below those levels.

More bad news about earnings hit the market after the closing bell yesterday. The latest round of pre-announcements was centered on the software sector, where some Wall Street experts see room for stock prices to fall further. But on the heels of yesterday's carnage that hit software and non-software names, the culprits were trading off their Tuesday lows.

Among the companies to warn on Tuesday night, electronic commerce software manufacturer

Commerce One

(CMRC)

,

TheStreet Recommends

Rational Software

(RATL)

, and

Sybase

(SYBS)

, all higher.

Lucent

(LU)

was getting hit hard this morning. It was off 12.4% to $6.88.

Those moving higher included forest and paper stocks, as well as cyclical names. Other sectors turned around as the morning wore on. Retail and oil stocks were moving up.

Still, if the latest round of earnings news is any indication about the future, there are probably lots more companies with last-minute disappointments up their sleeves. According to market experts, until the earnings picture brightens, the stock market outlook will darken.